Unity Bancorp, Inc. (NYSE: UNTY) announced a quarterly dividend increase to $0.16 per share, up from $0.15 per share, representing a 6.7% rise. The new dividend will be payable on March 20, 2026, to shareholders of record as of March 6, 2026.
The increase follows a record 2025 year in which the bank posted net income of $58.0 million, or $5.67 per diluted share, and a 2.17% return on assets and 18.07% return on equity. In the fourth quarter of 2025, earnings per share of $1.41 beat analyst estimates of $1.35, driven by a 12.6% jump in gross loans, a 10.7% rise in total deposits, and a 6‑basis‑point expansion of the net interest margin to 4.60%.
Management said, "The increase in our quarterly cash dividend reflects the strength of Unity Bancorp's financial performance, disciplined balance sheet management, and our continued commitment to delivering consistent value to our shareholders. We remain focused on maintaining a strong capital position while supporting sustainable growth and serving the communities in which we operate."
The dividend hike aligns with Unity’s conservative payout ratio of 10.9% and its history of 12 consecutive dividend increases, reinforcing its strategy to reward investors while preserving capital for growth. The bank’s balance‑sheet strength is underscored by a $3.0 billion asset base and $2.3 billion in deposits, with loan growth offsetting a nonaccrual commercial mortgage that impacted income by $1.6 million pre‑tax in Q4 2025.
The dividend increase signals management confidence in continued cash generation and positions Unity to attract income‑focused investors in a competitive regional banking landscape.
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