Unity Bancorp Reports Quarterly Earnings of $9.9 Million

Rhea-AI Summary

Unity Bancorp, Inc. (NASDAQ: UNTY) reported a net income of $9.9 million for Q3 2022, up 5.1% from Q3 2021. Earnings per diluted share rose to $0.93. Year-to-date, net income increased 8.1% to $28.5 million, with year-to-date earnings per share at $2.67, reflecting a 6.8% growth. The company noted an impressive 1.85% ROA and 17.39% ROE but acknowledged challenges due to rising interest rates.

Positive

• Net income increased by 5.1% year-over-year in Q3 2022.
• Earnings per diluted share rose by 3.3% compared to the same quarter last year.
• Year-to-date net income grew by 8.1%.
• Impressive ROA of 1.85% and ROE of 17.39%.
• Strong loan and deposit growth driving core earnings.

Negative

• Rising interest rates may pose risks to future earnings.
• Management is moving to a defensive position to manage credit exposure.

CLINTON, N.J., Oct. 14, 2022 (GLOBE NEWSWIRE) -- Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $9.9 million, or $0.93 per diluted share, for the quarter ended September 30, 2022, compared to net income of $9.5 million, or $0.90 per diluted share for the prior year’s third quarter. This represents a 5.1% increase in net income and a 3.3% increase in net income per diluted share. For the nine months ended September 30, 2022, Unity reported net income of $28.5 million, or $2.67 per diluted share, compared to $26.4 million or $2.50 per diluted share for the prior year’s period. This represents a 8.1% increase in net income and a 6.8% increase in net income per diluted share.

James A. Hughes, President and CEO, commented on the financial results: “We are extremely pleased to announce another record-breaking quarter for Unity Bancorp, where we generated $9.9 million of net income, or $0.93 per diluted share. Steady growth in our loan and deposit franchises continue to drive robust core banking earnings, resulting in an impressive 1.85% ROA and 17.39% ROE. We attribute this success to our valued customer base and our employees’ ability to deliver top-notch financial services to the communities that we serve. While the prospective macro-economic trends are deteriorating given the significant increase in interest rates, we are actively moving to a defensive position to manage our credit exposure.”

For the full version of the Company’s 2022 third quarter earnings release, including financial tables, please visit News - Unity Bank (q4ir.com).

Unity Bancorp, Inc. is a financial services organization headquartered in Clinton, New Jersey, with approximately $2.3 billion in assets and $1.8 billion in deposits. Unity Bank, the Company’s wholly owned subsidiary, provides financial services to retail, corporate and small business customers through its 18 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 Q3 2022?

Unity Bancorp reported net income of $9.9 million, or $0.93 per diluted share, for Q3 2022.

How does Unity Bancorp's 2022 performance compare to 2021?

For the nine months ended September 30, 2022, net income increased by 8.1% compared to the same period in 2021.

What is the outlook for Unity Bancorp given economic conditions?

Unity Bancorp noted potential challenges due to rising interest rates and is shifting to a defensive strategy.

What financial metrics did Unity Bancorp report for 2022 year-to-date?

Unity reported net income of $28.5 million year-to-date, with earnings per diluted share at $2.67.