Unity Bancorp reports Q2 EPS 1.61, consensus $1.18

CEO James Hughes commented: “We are pleased to announce another record-breaking quarter for Unity Bancorp (UNTY), with net income of $16.5M, or $1.61 per diluted share. This performance reflects 2.51% ROA and 21.15% ROE. This quarter’s results were positively impacted by one-time realized gains and provision release related to the previously disclosed non-performing $5M par investment security. This investment, issued by Patriot National Bancorp, Inc., benefited from a successful series of capital raises. We are pleased with the capital raise and Management’s new trajectory. Excluding this one-time event, on a non-GAAP basis, we earned $12.2M in net income, or $1.20 per diluted share, representing 1.86% ROA and 15.70% ROE. Net interest margin expanded 3 basis points to 4.49% in the second quarter. We are very optimistic about Unity Bank’s future. Loan demand continues to be strong due to robust economic growth in our footprint. Recent inflation data indicates that prices have stabilized after several years of price increases, and as a result, the market is anticipating additional rate cuts this year. If those rate cuts occur, we might expect to see even stronger economic growth through the remainder of the year.”