Unity Bancorp Inc. (NASDAQ:UNTY), a New Jersey-based commercial bank, has announced a new Change In Control Agreement with James Donovan, its First Senior Vice President and Chief Lending Officer. The agreement, which was entered into on Monday, replaces a previous arrangement from May 9, 2023.
Under the terms of the agreement, Donovan will receive severance benefits if his employment is terminated within 12 months following a change in control at the bank. These benefits include a lump sum payment equivalent to one year of his current base salary plus the cash bonus and commission from the preceding fiscal year. Donovan will also continue to receive hospital, health, medical, and life insurance benefits on the same terms as before his termination.
Furthermore, any unvested stock options or awards granted to Donovan will immediately vest upon his termination. The agreement stipulates that severance payments may be reduced if they exceed 2.99 times his "base amount" as defined under Section 280G of the Internal Revenue Code.
This information is based on a press release statement.
In other recent news, Unity Bancorp, Inc., the parent company of Unity Bank, announced a quarterly cash dividend of $0.13 per common share for its shareholders. This dividend is set to be distributed on June 21, 2024, to shareholders of record as of June 7, 2024, reflecting the company's continued financial performance.
Unity Bancorp, which manages assets estimated at approximately $2.6 billion and deposits totaling around $2.0 billion, also provided forward-looking statements to give insight into its expected future financial performance. However, the company noted that these projections involve risks and uncertainties beyond its control, which could impact their realization.
These are recent developments in the ongoing journey of Unity Bancorp.
InvestingPro Insights
Unity Bancorp Inc. (NASDAQ:UNTY) has been making strategic moves, not just in its executive agreements but also in its financial performance. According to InvestingPro data, Unity Bancorp has a market capitalization of $310.22 million and a sound P/E ratio of 8.24, which adjusts slightly to 8.0 when considering the last twelve months as of Q2 2024. This indicates a reasonable valuation of the company's shares relative to its earnings. Moreover, the company has shown a consistent revenue growth of 0.95% over the same period, underscoring its financial stability.
InvestingPro Tips highlight that Unity Bancorp has raised its dividend for 11 consecutive years, demonstrating a commitment to shareholder returns. Additionally, the company has maintained dividend payments for 12 consecutive years, which is a testament to its financial reliability and prudent management. For investors interested in dividend consistency and growth, these factors are quite reassuring. Furthermore, Unity Bancorp's stock has experienced a strong return over the last three months, with a 15.32% price total return, indicating robust performance in the short term.
For those considering an investment in Unity Bancorp, there are 9 additional InvestingPro Tips available, which can provide deeper insights into the company's financial health and prospects. These tips can be accessed through the dedicated InvestingPro platform for Unity Bancorp at https://www.investing.com/pro/UNTY.
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