2Q26 First Look: EPS Beats with a Sustained 2%+ ROA, 16%+ ROTCE

Research evidence excerpt

2Q26 First Look: EPS Beats with a Sustained 2%+ ROA, 16%+ ROTCE

zed), a pickup from 1Q and broad-based by category

with contribution across commercial categories (non-owner occupied CRE, owner USD65

occupied, C&I) and residential construction. Commentary in the release surrounding

forward outlook continued to paint a confident picture with management pointing toward 60

healthy loan pipelines. Meanwhile, deposit balances slightly outpaced loan growth 55

(+14% annualized) and included impressive growth in NIB (+8% L/Q to 20% of balances,

up from 19% at 3/31) and resulted in a L/D ratio of 108.5% at quarter end. 50

• Noninterest items. Operating noninterest income declined 13% L/Q with the decrease

largely attributable to lower loan fees and a decline in SBA GoS. Fees were $0.03 short 40

of our model as the mortgage GoS line did not experience the seasonal pick-up that we Jul-25 Sep-25 Nov-25 Jan-26 Mar-26 May-26 Jul-26

had expected. Operating expenses fell 1% L/Q, a $0.03Δ versus our modeling. UNTY Source: Bloomberg

continues to deliver a best-in-class efficiency ratio in the low-40% range and an expense/

assets ratio <2%.

• Credit trends looked pretty benign. Nonaccrual loans increased a bit L/Q, measuring

1.23% of total loans, up 5 bps from 3/31, though not particularly concerning. With net

recoveries recorded, the bank provisioned $1.2M, $0.03 lower than our model, and the

allowance held stable at 1.29% of total loans HFI.

• TBVPS increased 3.8% L/Q (unannualized) to $36.87 while the company's TCE ratio

was down 18 bps L/Q to 11.60%, still remaining toward the top of its peer group. We

note regulatory capital similarly holds strong with the company at a 14.2% CET1 ratio.

There were no repurchases during the quarter (none modeled).