The modest EPS miss and higher nonaccruals may cap near-term upside, but strong NIM expansion, loan/deposit growth, and improving efficiency support the positive trajectory. Monitor future credit quality trends and the Patriot investment (2.2M shares held) for further mark-to-market volatility. The stock is up 13.2% Q/Q, suggesting much of the good news is priced in.
Price Chart
Executive Summary
Unity Bancorp reported Q2 2026 EPS of $1.42, missing the $1.44 consensus by 1.4%, while net income rose 1.3% sequentially to $14.5M. Core operating performance improved with NIM expanding to 4.56% and loan growth of 5.4% YTD, but nonaccrual assets increased to $34.5M and noninterest income declined 33% Q/Q due to unrealized losses on Patriot National Bancorp investment.
Key Financial Metrics
Key Facts
- Q2 2026 diluted EPS $1.42 vs consensus $1.44 (miss by 1.4%)
- Net income $14.5M, up 1.3% Q/Q from $14.3M in Q1 2026
- Net interest margin expanded 3 bps Q/Q to 4.56%
- Total gross loans grew 5.4% from Dec 2025 to $2.68B
- Total deposits up 6.0% from Dec 2025 to $2.46B
- Nonaccrual assets rose 7.5% Q/Q to $34.5M (1.08% of total assets)
- Noninterest income fell 33% Q/Q to $1.9M, driven by $0.6M unrealized losses on Patriot equity investment
- Efficiency ratio improved to 40.50% from 41.77% in Q1 2026
- CET1 ratio declined 31 bps from Dec 2025 to 14.19% due to risk-weighted asset growth
- Book value per share rose 3.8% Q/Q to $37.02
Financial Impact
EPS miss of $0.02 (1.4%) vs consensus; sequential net income growth of 1.3%
Risk Factors
- Elevated nonaccrual assets ($34.5M) with a single $15.5M CRE relationship accounting for nearly half
- CET1 ratio declining 31 bps to 14.19% due to rapid loan growth may constrain future capital actions
- Unrealized losses on Patriot National Bancorp investment reducing noninterest income
- Net interest income was down 2.0% Q/Q in Q1 2026; sequential improvement in Q2 driven by day count, not structural NIM expansion
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-302425 |
| Document: unty-20260714.htm | 0001193125-26-302425 |
| Document: 0001193125-26-302425-index-headers.html | 0001193125-26-302425 |
| Document: 0001193125-26-302425-index.html | 0001193125-26-302425 |
| Document: 0001193125-26-302425.txt | 0001193125-26-302425 |
| 8-K Data (Synthetic) | 0001193125-26-302425 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 13, 2026 14d ago | 8-K | $55.39 | awaiting T+60 | — | $58.13 (+4.94%) |
Sep 23, 2026 4w ago | 8-K | $55.33 | awaiting T+60 | — | $58.13 (+5.05%) |
Sep 10, 2026 6w ago | 8-K | $60.13 | awaiting T+60 | — | $58.13 (−3.33%) |
Aug 7, 2026 11w ago | 8-K | $59.66 | awaiting T+60 | — | $58.13 (−2.57%) |
Jul 14, 2026 15w ago | 8-K | $55.54 $54.61 | ▼ −1.67% | ▼ −5.05% | $58.13 (+4.65%) |
Jul 14, 2026 15w ago | Press Release | $55.54 $54.61 | ▼ −1.67% | ▼ −5.05% | $58.13 (+4.65%) |
May 21, 2026 22w ago | Press Release | $54.58 $60.17 | ▲ +10.24% | ▲ +7.05% | $58.13 (+6.50%) |
Apr 22, 2026 26w ago | 8-K | $52.77 $57.11 | ▲ +8.22% | ▲ +3.21% | $58.13 (+10.15%) |
Apr 14, 2026 28w ago | 8-K | $55.00 $56.32 | ▼ −2.40% | ▲ +6.12% | $58.13 (−5.68%) |
Apr 14, 2026 28w ago | Press Release | $55.00 $56.32 | ▲ +2.40% | ▼ −6.12% | $58.13 (+5.68%) |
US Market Status
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