Unity Bancorp: Still Interesting For The Longer-Term Investor
Unity Bancorp has reported strong financial results for the third quarter of 2025. The bank’s net income per share rose by 32% compared to the same period last year, reaching $1.41. This performance has driven a 40% increase in its stock price over the past year.
The bank’s earnings per share climbed to $1.41 in Q3 2025, up from $1.07 in the same quarter of 2024. Shareholders received a $0.15 dividend per share, which used about 10% of the net income generated.
Net interest margins expanded by 38 basis points year-on-year, boosting profitability. Meanwhile, the cost-to-income ratio dropped by 276 basis points to 41.47%, reflecting improved efficiency. Credit quality remained strong, with net charge-offs totalling just $1 million in the first nine months of 2025—equivalent to 0.06% of total loans. Historically, Unity Bancorp has maintained an average return on equity of 16.5%, enabling reinvestment for growth. As of December 2025, full-year data on net interest margins for the banking sector is still incomplete. Based on available quarterly reports, no other bank has yet surpassed Unity Bancorp’s performance in Q1-Q3. The bank’s stock currently trades at $55.15, around 1.66 times its book value.
Unity Bancorp’s financial strength is evident in its rising margins, low charge-offs, and efficient operations. With a market valuation of 1.66 times book value and a share price up 40% year-on-year, the bank continues to demonstrate resilience. Full-year comparisons will confirm whether its performance remains unmatched in the sector.
