Unity Bancorp, Inc. (NASDAQ: UNTY) has reported a 5.5% increase in net income, reaching $11.5 million, or $1.13 per diluted share for the quarter ended December 31, 2024, compared to $10.9 million, or $1.07 per diluted share for the quarter ended September 30, 2024. The twelve months ending December 31, 2024, also saw a 4.4% increase in net income, reaching $41.5 million, or $4.06 per diluted share, compared to $39.7 million, or $3.84 per diluted share, for the twelve months ended December 31, 2023.
The primary driver of earnings, net interest income, increased to $26.5 million for the quarter ended December 31, 2024, up from $24.9 million for the quarter ended September 30, 2024, representing a 6.4% increase. Net interest margin also saw a significant increase of 21 basis points, reaching 4.37% for the quarter ended December 31, 2024.
Total gross loans increased by $88.6 million, or 4.1%, from December 31, 2023, due to increases in commercial loans, partially offset by decreases in residential construction and SBA loans. Additionally, total deposits increased by $176.2 million, or 9.2%, from December 31, 2023, with 19.3% of total deposits being uninsured or uncollateralized.
The company's shareholders' equity increased to $295.6 million as of December 31, 2024, compared to $261.4 million as of December 31, 2023, marking a $34.2 million increase primarily driven by 2024 earnings, partially offset by share repurchases and dividend payments.
In terms of regulatory capital ratios, the leverage ratio, common equity tier 1 capital ratio, tier 1 capital ratio, and total capital ratio all showcased increases compared to the ratios at December 31, 2023.
As of December 31, 2024, the company held $180.4 million of cash and cash equivalents and maintained approximately $558.0 million of funding available from various sources, representing 182.5% of uninsured or uncollateralized deposits.
Furthermore, non-accrual assets decreased to $15.0 million as of December 31, 2024, compared to $19.2 million as of December 31, 2023, and $15.9 million as of September 30, 2024, with non-accrual loans representing 0.58% of total loans and non-accrual assets accounting for 0.57% of total assets as of December 31, 2024.
In addition to financial performance, Unity Bank and its employees fundraised over $25 thousand for local food pantries in 2024 and installed electric vehicle charging stations at its corporate headquarters in the fourth quarter, showing a commitment to community service and a sustainable future.
Unity Bancorp, Inc. is a financial services organization headquartered in Clinton, New Jersey, with approximately $2.7 billion in assets and $2.1 billion in deposits, providing financial services to retail, corporate, and small business customers through its branch network in New Jersey and Pennsylvania. Following these announcements, the company's shares moved 4.2%, and are now trading at a price of $45.15. Check out the company's full 8-K submission here.
