Unity Bancorp Reports $17.4 Million Net Income for Q3 2026

Unity Bancorp, Inc. reported net income of $17.4 million, or $1.70 per diluted share, for the three months ended September 30, 2026. This represents an increase from $14.5 million, or $1.42 per diluted share, in the prior quarter. For the nine months ended September 30, 2026, the company reported net income of $46.1 million, or $4.52 per diluted share, compared to $42.5 million, or $4.15 per diluted share, for the same period in 2025.

Net interest income for the third quarter was $34.3 million, an increase of $2.5 million from the previous quarter. This growth was driven by higher earning asset yields resulting from strong loan originations and the repricing of existing loans. The net interest margin expanded by 11 basis points to 4.67%.

The provision for credit losses on loans was $0.9 million for the quarter, compared to $1.0 million in the prior quarter. Noninterest income was $2.4 million, an increase of $0.5 million, primarily due to a decrease in recognized unrealized losses. Noninterest expense increased to $15.6 million from $13.9 million, driven by increased compensation and benefits, loan-related expenses, and director fees.

On the balance sheet, total gross loans increased by $235.6 million, or 9.3%, from December 31, 2025. Total deposits increased by $235.4 million, or 10.1%, over the same period. The company purchased $27.6 million in transferable federal investment tax credits during the third quarter, resulting in $2.6 million in tax savings. Shareholders' equity increased to $388.5 million as of September 30, 2026.

Nonaccrual assets decreased to $24.1 million from $31.3 million as of December 31, 2025. The company also repurchased 6,616 shares of common stock during the nine months ended September 30, 2026, at a weighted average price of $49.01 per share.

Regarding leadership, CEO James A. Hughes announced his retirement effective March 31, 2027. President George Boyan will succeed him as CEO effective April 1, 2027. Additionally, the company announced a 6% increase in its third quarter cash dividend to $0.17 per common share.