Unity Bancorp Q3 net income falls 

Overview

• Unity Bancorp Q3 net income decreases to $14.4 mln, EPS at $1.41

• Company's loans and deposits grew sequentially by 3.6% and 3.7% respectively

• Unity Bancorp opens 22nd branch in Madison, NJ, expanding footprint

Outlook

• Unity Bancorp aims to grow loans and deposits at a mid-to-high single-digit rate

Result Drivers

• NET INTEREST MARGIN - Co's net interest margin expanded by 5 basis points to 4.54%, aiding profitability

• BALANCE SHEET GROWTH - Loans increased by $85.9 mln and deposits grew by $80.1 mln, reflecting organic growth strategies

• DEBT CONVERSION - Conversion of debt to equity in Patriot National Bancorp added $0.8 mln to net income

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Unity Bancorp Inc is $60.00, about 21.4% above its October 13 closing price of $47.16

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release:

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