Unity Bancorp reports Q3 non-GAAP EPS $1.33, consensus $1.29

CEO James Hughes commented: “We are pleased to announce another outstanding quarter for Unity Bancorp (UNTY), with net income of $14.4M, or $1.41 per diluted share. This performance reflects a return on average assets of 2.11%, and return on average equity of 17.41%. Notably, our net interest margin expanded by 5 basis points to 4.54%, underscoring our ability to drive profitability in a dynamic rate environment…Sequentially, loans increased by $85.9M, or 3.6%, and deposits grew by $80.1 million, or 3.7%. Our balance sheet remains strong, supported by disciplined credit origination and growth funded by lower-cost deposits. Looking ahead, our strategy of growing loans and deposits in tandem at a mid-to-high single digit rate, positions us well to achieve our growth targets for the remainder of 2025 and beyond. The quarter also benefited from the continued resolution of our Patriot National Bancorp, Inc. position. Unity converted the remainder of its debt position into approximately 2.7 million restricted common shares of Patriot, which will remain restricted until registered. This conversion contributed $0.8M to net income for the quarter. Excluding this one-time event, on a non-GAAP basis, Unity earned $13.6 million in net income, or $1.33 per diluted share, representing a 2.00% return on average assets and 16.49% return on average equity…Unity is well-positioned to strengthen customer relationships and expand lending initiatives, driving continued momentum and long-term value for our shareholders.”