Unity Bancorp Inc. Common Stock (UNTY)

FairStock Score: 82/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach a small regional bank like Unity with Graham's caution and Buffett's preference for durable returns. At the 2026-10-13 close of $55.39, FairStock's calculations put it at 9.17 times earnings, 1.44 times book, with a 17.05% return on equity and a 0.40 PEG. That is not a demanding price if the earnings are real and repeatable. The filed record shows why the market may like it: net income rose from $39.7M in FY2023 to $58.0M in FY2025, and diluted EPS from $3.84 to $5.67. In fiscal Q2 2026, the quarter ended 2026-06-30, net income was $14.5M and diluted EPS $1.42, broadly in line with fiscal Q1 2026's $14.3M and $1.40 and fiscal Q4 2025's $15.5M and $1.52. FairStock calls it a STALWART because profit compounded 19.6% a year over five years. Any moat is narrow: local banking relationships can be sticky, but the product is largely undifferentiated. Still, a bank is a leveraged trust business, and the data here is thin where it matters most. CET1 capital, net interest margin, nonperforming assets, reserve coverage, and underwriting quality are not in the figures, so I cannot verify credit risk. The Piotroski F-Score of 1/9 is a loud warning from the accounting screen, even if that tool is imperfect for banks. ROCE of 2.01% is not meaningful for this model, and D/E is unavailable. The 1.23% dividend yield and 0.65 beta offer only modest income and low volatility. So I see a reasonably priced, steadily profitable local lender, but not one I can underwrite fully without bank-specific credit and capital details.

In plain English: Unity Bancorp is a small regional bank that takes deposits and makes loans to businesses and consumers. The bank has been steadily profitable and earns a solid return on shareholders' money. At $55.39, the shares look reasonably priced rather than bargain-bin cheap, but banking risks and missing credit details mean the picture is not complete.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q4 2025 10-K (period ended 2025-12-31) · fiscal Q3 2025 10-K (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer