CLINTON, N.J. - Unity Bancorp , Inc. (NASDAQ: NASDAQ:UNTY), the parent company of Unity Bank, has launched a new share repurchase initiative, authorizing the buyback of up to 500,000 shares, representing about 5% of its outstanding common stock. The program's commencement is set to follow the completion of the company's 2023 Share Repurchase Plan.
The repurchase of shares will be subject to market conditions and other factors, such as stock availability, market prices, alternative capital uses, and the company's financial performance.
Unity Bancorp's President and CEO, James A. Hughes, expressed confidence in the company's long-term growth prospects and the value this program can bring to shareholders. He emphasized the company's disciplined approach to capital utilization and its strong capital position.
Since the announcement of the previous repurchase program on April 27, 2023, Unity Bancorp has bought back 315,355 shares, with 184,645 shares still pending repurchase. The new repurchase plan will allow transactions on the open market or through private deals, with the possibility of employing a Rule 10b5-1 trading plan, enabling the company to buy back shares even during periods when it might otherwise be restricted from doing so.
The management retains discretion over the specifics of the repurchase strategy, including the volume and timing of the buybacks, within the constraints of market conditions, legal and regulatory requirements, and the company's liquidity and capital needs. The Board of Directors reserves the right to alter or halt the Share Repurchase Program at any time.
Unity Bancorp, headquartered in Clinton, New Jersey, boasts approximately $2.6 billion in assets and $2.0 billion in deposits. The financial services organization serves a diverse customer base through its retail service centers spread across several counties in New Jersey and Northampton County, Pennsylvania.
This press release includes forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ from anticipated results. The factors that may affect the company's ability to achieve its goals include economic conditions, interest rate trends, the capacity of borrowers to repay loans, regulatory findings, and the impact of emergencies or natural disasters.
The information contained in this article is based on a press release statement from Unity Bancorp, Inc.
In other recent news, Unity Bancorp, Inc. has declared a quarterly cash dividend of $0.13 per common share, demonstrating its continued financial performance. This dividend is set to be paid to shareholders of record as of June 7, 2024, with distribution scheduled for June 21, 2024.
The company, which oversees assets estimated at approximately $2.6 billion and deposits of around $2.0 billion, also issued forward-looking statements to provide insight into its expected future financial performance.
However, Unity Bancorp has noted that these projections could be influenced by various factors beyond the company's control, including general economic conditions, interest rate trends, and borrower repayment capabilities.
The company also highlighted that these forward-looking statements are based on current estimates and assumptions made by the management, which are subject to change due to various factors. These uncertainties and risks were detailed in their Annual Report on Form 10-K and other filings with the SEC. These are the recent developments for Unity Bancorp.
InvestingPro Insights
Unity Bancorp, Inc. (NASDAQ: UNTY) has recently caught the attention of investors with its new share repurchase program. With a market capitalization of $345.33 million and positive performance metrics, the company is positioning itself for further growth. According to InvestingPro data, Unity Bancorp is trading at a P/E ratio of 9.2, which is adjusted to 8.91 when looking at the last twelve months as of Q2 2024. This valuation comes in the context of a modest revenue growth of 0.95% over the same period.
InvestingPro Tips highlight that Unity Bancorp has been consistent in rewarding its shareholders, raising its dividend for 11 consecutive years and maintaining dividend payments for 12 consecutive years. This track record may be particularly appealing to income-focused investors.
Moreover, the company has seen a strong return over the last month, with a 20.0% price total return, and over the last three months, with a 27.58% return. These performances are reflective of a larger trend, as the company has also experienced a high return over the last decade.
While Unity Bancorp is trading near its 52-week high, with a price at 97.08% of the peak, analysts predict the company will be profitable this year, having already been profitable over the last twelve months. This suggests a potential for continued upward momentum in its stock price, especially given the recent large price uptick over the last six months. For investors seeking detailed analysis, InvestingPro offers additional tips, with a total of 11 tips available for Unity Bancorp at: https://www.investing.com/pro/UNTY.
As the company looks to capitalize on its strong capital position and market conditions with its share repurchase program, these InvestingPro Insights and data points can provide investors with a more nuanced understanding of Unity Bancorp's financial health and market position.
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