The core EPS miss vs consensus (-3% vs $1.56 consensus) and elevated noninterest expense (+12% QoQ) may temper the headline GAAP beat. Watch for normalization of tax rate and expense levels in Q4, and the CEO transition to George Boyan in April 2027.
Price Chart
Executive Summary
Unity Bancorp reported Q3 2026 GAAP net income of $17.4M ($1.70 diluted), up 20.1% QoQ from $14.5M ($1.42), driven by NIM expansion to 4.67% and a $2.5M federal tax credit benefit. Core (adjusted) EPS was $1.51, a 3% miss vs consensus of $1.56, as one-time items (SERP expense, broker fee, accelerated vesting) and higher noninterest expense offset strong loan and deposit growth. Asset quality improved sharply with nonaccrual assets falling 30% QoQ to $24.1M.
Key Financial Metrics
Key Facts
- GAAP diluted EPS $1.70 vs $1.42 QoQ (+19.7%) and $1.41 YoY (+20.6%)
- Core (adjusted) diluted EPS $1.51 vs consensus $1.56 (-3.0% miss)
- Net interest income $34.3M, +7.7% QoQ; NIM expanded 11bps to 4.67%
- Nonaccrual assets fell 30.2% QoQ to $24.1M (0.74% of assets vs 1.08%)
- Total gross loans +9.3% YTD to $2.78B; deposits +10.1% YTD to $2.56B
- Noninterest expense rose 12.0% QoQ to $15.6M, driven by $769K SERP charge, $405K broker fee, and $133K accelerated vesting
- Effective tax rate fell to 13.1% from 22.4% due to $2.6M in tax credit savings
- CEO retirement announced for March 2027; President George Boyan to succeed
- Quarterly dividend raised 6% to $0.17/share
Financial Impact
GAAP net income $17.4M, core adjusted net income $15.5M; $2.5M federal tax credit benefit; $769K SERP one-time charge
Risk Factors
- Core EPS missed consensus by 3% due to one-time expense items
- Noninterest expense growth (+12% QoQ) outpaced revenue growth
- CEO transition risk with planned retirement in March 2027
- Concentration risk from $15.5M CRE relationship still ~half of nonaccruals
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000920427-26-000050 |
| Document: unty-20261013.htm | 0000920427-26-000050 |
| Document: 0000920427-26-000050-index-headers.html | 0000920427-26-000050 |
| Document: 0000920427-26-000050-index.html | 0000920427-26-000050 |
| Document: 0000920427-26-000050.txt | 0000920427-26-000050 |
| 8-K Data (Synthetic) | 0000920427-26-000050 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 13, 2026 14d ago | 8-K | $55.39 | awaiting T+60 | — | $57.93 (+4.59%) |
Sep 23, 2026 4w ago | 8-K | $55.33 | awaiting T+60 | — | $57.93 (+4.70%) |
Sep 10, 2026 6w ago | 8-K | $60.13 | awaiting T+60 | — | $57.93 (−3.66%) |
Aug 7, 2026 11w ago | 8-K | $59.66 | awaiting T+60 | — | $57.93 (−2.90%) |
Jul 14, 2026 15w ago | 8-K | $55.54 $54.61 | ▼ −1.67% | ▼ −5.05% | $57.93 (+4.30%) |
Jul 14, 2026 15w ago | Press Release | $55.54 $54.61 | ▼ −1.67% | ▼ −5.05% | $57.93 (+4.30%) |
May 21, 2026 22w ago | Press Release | $54.58 $60.17 | ▲ +10.24% | ▲ +7.05% | $57.93 (+6.14%) |
Apr 22, 2026 26w ago | 8-K | $52.77 $57.11 | ▲ +8.22% | ▲ +3.21% | $57.93 (+9.78%) |
Apr 14, 2026 28w ago | 8-K | $55.00 $56.32 | ▼ −2.40% | ▲ +6.12% | $57.93 (−5.33%) |
Apr 14, 2026 28w ago | Press Release | $55.00 $56.32 | ▲ +2.40% | ▼ −6.12% | $57.93 (+5.33%) |
US Market Status
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