Unity Bancorp Reports Quarterly Earnings of $8.5 Million

Rhea-AI Summary

Unity Bancorp, Inc. (NASDAQ: UNTY) reported a net income of $8.5 million, or $0.80 per diluted share, for Q1 2021, marking a 58.3% increase from $5.4 million or $0.49 per share in Q1 2020. This growth is attributed to revenues from the SBA Paycheck Protection Program, a better net interest margin, and increased non-interest income. The company anticipates a strong year ahead, bolstered by robust performance in mortgage and SBA lending.

Positive

• Net income increased 58.3% to $8.5 million.
• Earnings per share rose to $0.80.
• Growth driven by SBA PPP revenues and improved net interest margin.
• Expectations for strong mortgage and SBA lending performance.

Negative

• None.

CLINTON, N.J., April 15, 2021 (GLOBE NEWSWIRE) -- Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $8.5 million, or $0.80 per diluted share, for the quarter ended March 31, 2021, a 58.3% increase compared to net income of $5.4 million, or $0.49 per diluted share for the prior year’s first quarter, primarily due to revenue generated by the Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”), improved net interest margin and an increase in non-interest income.

James A. Hughes, President and CEO, commented on the financial results: “I am proud to report record results in the first quarter of 2021, resulting from our focused approach of sustaining a robust balance sheet and our commitment towards helping our customers. The hard work and dedication our employees demonstrated during the COVID-19 pandemic has been extraordinary. In addition to helping our customers with loan deferrals, we were able to provide access to credit through round one and two of the SBA PPP program. Stepping out of the shadows of 2020, we anticipate a strong year for Unity. Our mortgage and SBA lending areas are expected to be strong contributors, and we believe the interest rate environment should provide for a stable margin. I want to sincerely thank our customers for putting their trust in Unity, and our wonderful staff for their tremendous efforts this quarter and throughout the unprecedented past year.”

For the full version of the Company’s 2021 first quarter earnings release, including financial tables, please visit https://unitybancorp.q4ir.com/news/default.aspx.

Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with approximately $2.0 billion in assets and $1.6 billion in deposits. Unity Bank, the Company’s wholly owned subsidiary, provides financial services to retail, corporate and small business customers through its 19 retail service centers located in Bergen, Hunterdon, Middlesex, Somerset, Union and Warren Counties in New Jersey and Northampton County in Pennsylvania. For additional information about Unity, visit our website at www.unitybank.com, or call 800-618-BANK.

This news release contains certain forward-looking statements, either expressed or implied, which are provided to assist the reader in understanding anticipated future financial performance. These statements may be identified by use of the words “believe”, “expect”, “intend”, “anticipate”, “estimate”, “project” or similar expressions. These statements involve certain risks, uncertainties, estimates and assumptions made by management, which are subject to factors beyond the company’s control and could impede its ability to achieve these goals. These factors include those items included in our Annual Report on Form 10-K under the heading “Item IA-Risk Factors” as amended or supplemented by our subsequent filings with the SEC, as well as general economic conditions, trends in interest rates, the ability of our borrowers to repay their loans, our ability to manage and reduce the level of our nonperforming assets, results of regulatory exams, and the impact of COVID-19 on the Bank, its employees and customers, among other factors.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

News Media & Financial Analyst Contact:
George Boyan, EVP and CFO
(908) 713-4565

FAQ

What were Unity Bancorp's earnings for Q1 2021?

Unity Bancorp reported a net income of $8.5 million for Q1 2021.

How much did Unity Bancorp's earnings per share increase in Q1 2021?

Earnings per share increased to $0.80 in Q1 2021.

What factors contributed to Unity Bancorp's income growth in Q1 2021?

The income growth was primarily due to SBA PPP revenues, improved net interest margins, and increased non-interest income.

What does Unity Bancorp expect for the future financial performance?

Unity Bancorp anticipates a strong year, particularly in mortgage and SBA lending.