Unity Bancorp (NASDAQ:UNTY) Issues Earnings Results, Beats Estimates By $0.02 EPS

Unity Bancorp (NASDAQ:UNTY) released its quarterly earnings data on Tuesday. The financial services provider reported $1.51 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.49 by $0.02, FiscalAI reports. Unity Bancorp had a return on equity of 16.10% and a net margin of 30.26%. The business had revenue of $36.65 million during the quarter, compared to analyst estimates of $35.63 million.

Unity Bancorp Trading Up 1.9%

Shares of NASDAQ:UNTY opened at $55.37 on Tuesday. The company has a 50 day moving average of $58.25 and a 200-day moving average of $56.28. The firm has a market cap of $556.08 million, a P/E ratio of 9.63 and a beta of 0.65. Unity Bancorp has a twelve month low of $44.34 and a twelve month high of $62.50. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 0.88.

Unity Bancorp Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 17th. Stockholders of record on Thursday, September 3rd were paid a $0.17 dividend. The ex-dividend date of this dividend was Thursday, September 3rd. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.2%. This is an increase from Unity Bancorp’s previous quarterly dividend of $0.16. Unity Bancorp’s dividend payout ratio (DPR) is currently 11.83%.

Insider Activity

In related news, President George Boyan sold 6,504 shares of the firm’s stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $59.16, for a total transaction of $384,776.64. Following the transaction, the president owned 25,015 shares in the company, valued at $1,479,887.40. This trade represents a 20.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 28.87% of the stock is owned by company insiders.

Key Stories Impacting Unity Bancorp

Here are the key news stories impacting Unity Bancorp this week:

• Positive Sentiment: Unity Bancorp reported third-quarter net income of $17.4 million, or $1.70 per diluted share, up from $14.5 million, or $1.42 per share, in the second quarter. Nine-month net income rose to $46.1 million from $42.5 million a year earlier. Unity Bancorp Reports Quarterly Earnings of $17.4 Million
• Positive Sentiment: Core banking trends were favorable: loan and deposit growth remained robust, net interest income increased, net interest margin expanded and credit quality improved. These trends support continued revenue and profitability momentum. Unity Bancorp Q3 Profit, Net Interest Income Rise
• Positive Sentiment: The company benefited from a $2.5 million reduction in tax expense after purchasing transferable federal investment tax credits. Analysts also reported quarterly EPS of $1.51 versus a $1.49 consensus estimate and revenue of $36.65 million versus expectations of $35.63 million, though these figures differ from the company’s earnings release. Unity Bancorp Releases Quarterly Earnings Results
• Neutral Sentiment: Management expressed confidence in Unity Bancorp’s long-term growth prospects and balance sheet, while preparing for CEO James Hughes’ planned leadership transition next year to President George Boyan.
• Negative Sentiment: The $2.5 million tax-credit benefit is described as a one-time item, creating a less favorable comparison for future quarters if it is not repeated.
• Negative Sentiment: Management cited shifting interest-rate expectations and intense competition for deposits as potential pressures on future net interest margins and funding costs. Recent reported insider activity also showed sales, including transactions by President George Boyan. Unity Bancorp Reports Third Quarter 2026 Net Income

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on UNTY shares. DA Davidson reaffirmed a “buy” rating and set a $68.00 price target on shares of Unity Bancorp in a report on Friday, September 11th. Freedom Capital raised Unity Bancorp from a “hold” rating to a “strong-buy” rating in a report on Thursday, July 16th. Piper Sandler raised their target price on Unity Bancorp from $65.00 to $68.00 and gave the company an “overweight” rating in a research report on Friday, June 26th. Finally, Weiss Ratings restated a “buy (b+)” rating on shares of Unity Bancorp in a research report on Friday, July 31st. One investment analyst has rated the stock with a Strong Buy rating and five have given a Buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus target price of $65.50.

Unity Bancorp Company Profile

Unity Bancorp, Inc is the bank holding company for Unity Bank, a community-focused financial institution serving individuals, families and businesses in New Jersey and eastern Pennsylvania. Headquartered in Clinton, New Jersey, Unity Bank operates through a network of branches and provides relationship-based banking services to customers in its local markets.

The bank offers a range of deposit products, including checking, savings, money market accounts and certificates of deposit. Its lending activities include commercial and industrial loans, commercial real estate financing, residential mortgages, home equity loans and consumer loans.