Earnings Per Share (EPS) of $1.13, exceeding the estimated $1.12, showcasing Unity Bancorp’s financial strength.
Despite a slight revenue miss, the company reported a net income of $11.6 million, indicating operational efficiency.
Significant growth in the Commercial and Residential lending sectors, with loans increasing by $84.5 million.
Unity Bancorp, Inc. (NASDAQ:UNTY), the parent company of Unity Bank, is a financial institution that provides a range of banking services. On April 11, 2025, UNTY reported earnings per share (EPS) of $1.13, surpassing the estimated $1.12. This performance highlights the company’s ability to exceed market expectations, showcasing its financial strength and operational efficiency.
Despite the slight revenue miss, with $29.35 million reported against an estimated $29.64 million, UNTY’s earnings per share of $1.13 marks a significant improvement from the previous year’s $0.93 per share. This growth in EPS underscores Unity Bancorp’s financial progress over the past year, as highlighted by the Zacks Consensus Estimate. The company’s net income for the quarter was $11.6 million, a slight increase from the previous quarter’s $11.5 million.
James A. Hughes, President and CEO of Unity Bancorp, expressed satisfaction with the results, emphasizing a return on assets (ROA) of 1.83% and a return on equity (ROE) of 15.56%. These metrics indicate the company’s effective use of its assets and equity to generate profits. The Commercial and Residential lending sectors experienced significant growth, with loans increasing by $84.5 million, a 3.74% rise from the previous year-end.
The Retail division also excelled in deposit gathering, with customer deposits (excluding brokered deposits) rising by $90.7 million, or 4.82%, compared to the previous quarter. This growth in deposits reflects the company’s strong customer base and effective deposit strategies. UNTY’s price-to-earnings (P/E) ratio of approximately 9.53 indicates the market’s valuation of its earnings, while the price-to-sales ratio of about 3.75 reflects the value investors place on its revenue.
Additionally, the enterprise value to sales ratio of around 4.22 suggests how the market values the company’s total worth relative to its sales. The enterprise value to operating cash flow ratio of approximately 9.33 provides insight into the company’s cash flow efficiency. With an earnings yield of about 10.49%, UNTY offers a solid return on investment for shareholders. The debt-to-equity ratio of approximately 0.78 indicates a balanced leverage level, reflecting the company’s prudent financial management.
