Unity Bancorp has posted a rise in third-quarter revenue and earnings that beat analysts’ expectations in what it called a “challenging economic environment.”
Its shares rose 0.8% to $23.73 in early Friday trading in New York.
The New Jersey-based parent of Unity Bank reported net interest income of $23 million for the quarter to September 30, 2023, up 3.5% from a year earlier. That was after a $534,000 provision for credit losses.
Earnings per share rose 4.3% to $0.97, coming in above the $0.89 expected by analysts, according to Zacks Consensus Estimate.
The lender also reported a modest decline in its net interest margin over the past few quarters to 3.96% due to increased interest rates and a shift in the funding mix. However, it said its interest rate risk management remains sound, enabling it to consistently deliver top-tier operating results.
Over the quarter, it opened a branch in Parsippany, New Jersey, marking its first branch in Morris County and taking its total retail locations to 21. The banks said it plans to continue expanding.
“Looking ahead, we remain well-positioned for the future. Our strong capital base, conservative liquidity levels, and stable asset quality position provide us with the necessary foundation to continue delivering best-in-class service to the communities we serve," president and CEO James Hughes commented in a statement.
"Furthermore, our results are a testament to the strength of our talented employee base and their unwavering commitment to excellence.”
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