Unity Bancorp Announces Board Resignation

Unity Bancorp Inc. (NASDAQ:UNTY), a New Jersey-based state commercial bank with a market capitalization of $474 million, disclosed the departure of a key board member this week. Donald E. Souders, Jr., has resigned from his position on the Board of Directors of Unity Bancorp and its subsidiary, Unity Bank, effective immediately on February 26, 2025. The bank has demonstrated strong financial performance, with InvestingPro data showing a remarkable 77% return over the past year.

According to the 8-K filing with the Securities and Exchange Commission, Mr. Souders’ decision to step down was not due to any disagreements with the company or its operations. The announcement came without any indication of a successor or plans for a replacement on the board. The bank maintains a solid financial foundation, with InvestingPro analysis indicating a consistent track record of raising dividends for 12 consecutive years.

Unity Bancorp, headquartered in Clinton, NJ, has not yet disclosed any further details regarding the departure or any potential impact it may have on the company’s governance or strategic direction. The bank’s business phone remains available for stakeholders seeking information.

As a publicly-traded entity, Unity Bancorp is obliged to report such changes in its executive team and board to the SEC, ensuring transparency for investors and the market. The bank’s common stock is listed on NASDAQ under the trading symbol UNTY.

This event comes as part of the routine disclosures Unity Bancorp must make under federal securities law. Such changes in a company’s leadership are closely watched by investors as they can sometimes signal shifts in corporate strategy or governance.

The information in this article is based on a press release statement, providing investors and the public with the most current and factual updates regarding Unity Bancorp’s corporate governance.

In other recent news, Unity Bancorp reported strong fourth-quarter 2024 earnings, with an adjusted earnings per share (EPS) of $1.14, surpassing both Piper Sandler’s estimate of $1.09 and the consensus of $1.06. This robust performance was highlighted by a net interest margin (NIM) expansion of 21 basis points, reaching 4.37%, and approximately 2% loan growth funded by deposit growth. Piper Sandler responded by raising Unity Bancorp’s price target to $54 and maintaining an Overweight rating, citing the company’s attractive stock position. Similarly, Keefe, Bruyette & Woods (KBW) increased their price target to $55, maintaining an Outperform rating, following a 22 basis points beat on NIM, which contributed to a 36 basis points margin expansion in the latter half of 2024. KBW also adjusted their pre-provision net revenue (PPNR) estimates upward for 2025 and 2026, despite a slight reduction in EPS projections due to the removal of near-term buybacks. Unity Bancorp’s profitability is expected to remain strong, with a return on assets (ROA) between 1.8% and 1.9% and a return on tangible common equity (ROTCE) around 16%. The company’s stock is viewed as undervalued, trading at approximately 8 times the estimated earnings for 2026, according to KBW. These developments underscore the positive sentiment and confidence in Unity Bancorp’s financial performance and future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.