Unity Bancorp Q3 Net Income Rises 20% to $17.4M; NIM Expands to 4.67%
UNTY sits 27% above its 52-week low of $44.34.
Summary
Unity Bancorp reported Q3 2026 net income of $17.4 million ($1.70 diluted EPS), up 20% year-over-year, with net interest margin expanding to 4.67% and meaningful improvement in credit quality.
Key Events · Earnings and Guidance · UNTY
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Q3 Net Income Rises 20%
Net income of $17.4 million, or $1.70 per diluted share, up from $14.5 million ($1.42) in Q2 2026 and $14.4 million ($1.41) in Q3 2025.
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Net Interest Margin Expands
NIM increased 11 basis points sequentially to 4.67%, with net interest income up $2.5 million to $34.3 million on strong loan originations and repricing.
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Credit Quality Improves
Nonaccrual assets fell 30% to $24.1 million from $34.5 million in Q2, with nonaccrual loans to total loans improving to 0.81% from 1.23%.
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One-Time Tax Credit Benefit
Purchase of $27.6 million in federal investment tax credits generated $2.5 million in tax savings, reducing the effective tax rate to 13.1% from 22.4%.
Analysis · UNTY · Finance
A strong third quarter for Unity Bancorp saw net income climb 20% year-over-year to $17.4 million, or $1.70 per diluted share. Net interest margin expanded 11 basis points sequentially to 4.67%, driven by higher loan yields and successful recovery efforts. The quarter included a $2.5 million one-time benefit from federal investment tax credits, but even excluding that, core earnings remained solid at $15.5 million. Credit quality improved meaningfully with nonaccrual assets down 30% from the prior quarter to $24.1 million. The bank's capital position remains robust with a leverage ratio of 13.22% and CET1 of 14.46%, supporting continued loan growth of 9.3% year-to-date.
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In the 30 days to Oct 31, 2026, 31.5% of the 1750 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, UNTY was trading at $56.23 on NASDAQ in the Finance sector, with a market capitalization of approximately $556.1M. The 52-week trading range was $44.34 to $62.50. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.