CLINTON, N.J. (May 6, 2019) – Unity Bancorp, Inc. (NASDAQ: UNTY), the parent company of Unity Bank, was the top ranked New Jersey community bank on the recently published American Banker magazine list of the Top 200 Publicly Traded Community Banks. Unity was ranked 13th nationally on the respected industry list, which reviewed 601 institutions throughout the U.S.
“We are honored to have Unity climbing the American Banker list as it illustrates the continued financial strength and performance of the bank,” said Unity Bank President & CEO James A. Hughes. “We truly believe that the bank and community grow stronger together because our fiscal health means the bank is better positioned to invest in the community. Our continued success is a tribute to the bank’s sales and service culture, and the diversity of our products.”
The magazine ranked banks and thrifts that had total assets of less than $2 billion as of Dec. 31, 2018 and are publicly traded. Nationally, 601 institutions fit the category for the list. Unity Bank climbed the list from 19th in 2018 and 27th in 2017 to its current ranking.
The ranking is based on three-year return on average equity (ROAE), a measure of profitability that calculates how many dollars of profit a company generates with each dollar of shareholders’ equity. The ROAE for the 601 institutions was 7.44 percent. Unity Bancorp’s ROAE three year average was 14.63 percent, placing Unity near the top 2 percent of the Capital Performance Group analysis of data from S&P Global Market Intelligence.
The impressive showing on the American Banker list follows a strong first quarter for the bank highlighted by improving margins in an extremely challenging interest rate environment. Unity’s earnings improved by 9.8 percent during the first quarter with net income of $5.7 million, or $0.52 per diluted share, for the quarter ended March 31, 2019, compared to $5.2 million, or $0.48 per diluted share, for the prior year’s first quarter. The bank has with approximately $1.6 billion in assets and $1.2 billion in deposits.
“We continue to grow our capital organically and look to expand our branch and lending networks,” said Hughes. “I am excited about the prospects for continued improved earnings throughout the year.”