Unity Bancorp Reports Quarterly Earnings of $17.4 Million

Quarterly earnings included a one-time $2.5 million benefit from purchased federal investment tax credits.

Rhea-AI Summary

Unity Bancorp (UNTY) reported net income of $17.4 million for the third quarter of 2026, up from the preceding quarter. Diluted earnings per share were $1.70, compared with $1.42 for the quarter ended June 30, 2026, when net income was $14.5 million. A completed purchase of transferable federal investment tax credits reduced tax expense and provided a one-time $2.5 million earnings benefit.

For the nine months ended September 30, 2026, net income was $46.1 million, or $4.52 per diluted share, compared with $42.5 million, or $4.15 per diluted share, a year earlier. Unity said loans and deposits grew, net interest income increased, net interest margin expanded and asset quality improved during the quarter, while deposit gathering remained competitive. A leadership transition to President George Boyan is planned for next year.

9 points · 0 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

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Rhea-AI Sentiment measures something else, the tone of the wording.

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0 major · 1 point

How the balance works

Positive

• Moderate pointQuarterly net income rose to $17.4 million from $14.5 million in the quarter ended June 30, 2026.
• Moderate pointNine-month net income increased to $46.1 million from $42.5 million in the same 2025 period.
• Moderate pointLoans and deposits grew during the quarter, Unity said.
• Moderate pointNet interest income increased during the quarter, Unity said.
• Moderate pointNet interest margin expanded during the quarter, Unity said.
• Moderate pointAsset quality improved during the quarter, Unity said.

3 minor points

• Minor pointQuarterly diluted EPS increased to $1.70 from $1.42 in the quarter ended June 30, 2026.
• Minor pointNine-month diluted EPS rose to $4.52 from $4.15 in the same 2025 period.
• Minor pointPurchased federal investment tax credits reduced tax expense, providing a one-time $2.5 million earnings benefit.

Negative

• Minor pointDeposit gathering remained competitive, Unity said.

Key Figures

Quarterly net income: $17.4 million Quarterly diluted EPS: $1.70 per diluted share Nine-month net income: $46.1 million +2 more

Quarterly net income

$17.4 million

Quarter ended September 30, 2026; compared with $14.5 million for the quarter ended June 30, 2026

Quarterly diluted EPS

$1.70 per diluted share

Quarter ended September 30, 2026; compared with $1.42 for the quarter ended June 30, 2026

Nine-month net income

$46.1 million

Nine months ended September 30, 2026; compared with $42.5 million for the same period in 2025

Nine-month diluted EPS

$4.52 per diluted share

Nine months ended September 30, 2026; compared with $4.15 for the same period in 2025

Tax-credit benefit to earnings

$2.5 million

Benefit from the completed purchase of transferable federal investment tax credits during the quarter

Key Terms

net interest margin, investment tax credits, diluted share

3 terms

net interest margin financial

"net interest margin expanded"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

investment tax credits financial

"purchase of transferable federal investment tax credits"

Investment tax credits are government discounts on an investor’s tax bill tied to putting money into certain projects or assets, effectively returning a portion of the upfront cost as a tax saving. They matter to investors because they improve after-tax returns and can make otherwise marginal projects more profitable—like a manufacturer offering a coupon that lowers the net price of a major purchase—so they influence valuation, cash flow forecasts and investment decisions.

diluted share financial

"$1.70 per diluted share"

Diluted share count is the total number of company shares that would exist if all potential claims that can become stock—such as employee stock options, warrants and convertible bonds—were exercised or converted. Investors use diluted shares to see a more conservative view of ownership and per-share metrics (like earnings per share), because it’s like slicing a cake into more pieces: the same profit spread over more slices makes each slice smaller.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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CLINTON, N.J., Oct. 13, 2026 (GLOBE NEWSWIRE) -- Unity Bancorp, Inc. (NASDAQ: UNTY, the "Company"), parent company of Unity Bank (the "Bank"), reported net income of $17.4 million, or $1.70 per diluted share, for the quarter ended September 30, 2026, compared to net income of $14.5 million, or $1.42 per diluted share for the quarter ended June 30, 2026. For the nine months ended September 30, 2026, Unity Bancorp, Inc. reported net income of $46.1 million, or $4.52 per diluted share, compared to net income of $42.5 million, or $4.15 per diluted share, for the nine months ended September 30, 2025.

James A. Hughes, CEO, commented on the financial results: “We are pleased to report another strong quarter for Unity, highlighted by net income of $17.4 million, or $1.70 per diluted share, and continued momentum across our core banking franchise. Loan and deposit growth remained robust, net interest income increased, net interest margin expanded, and asset quality improved meaningfully during the quarter. These results reflect the ongoing success of our relationship-driven banking model and the strength of the markets we serve.

During the quarter, we also completed the purchase of transferable federal investment tax credits, which reduced our tax expense and provided a $2.5 million benefit to earnings. Importantly, even excluding this one-time benefit, our underlying financial performance remained strong and was supported by healthy customer activity, disciplined balance sheet management, and steady execution across the organization. While interest rate expectations have shifted and deposit gathering remains competitive, we continue to see attractive growth opportunities throughout our markets. Credit quality trends are encouraging, our capital and liquidity positions remain strong, and customer engagement levels continue to support healthy loan and deposit production.

Looking ahead, we are confident in Unity's long-term prospects as we prepare for the planned leadership transition next year to our President, George Boyan. Mr. Boyan has been deeply involved in every aspect of our strategic and operational execution, and I am confident that Unity is well-positioned for continued success under his leadership. With a strong balance sheet, a talented team, and a growing customer base, we remain focused on delivering sustainable growth and long-term value for our shareholders.”

For the full version of the Company’s quarterly earnings release, including financial tables, please visit News - Unity Bank (q4ir.com).

Unity Bancorp, Inc. is a financial services organization headquartered in Clinton, New Jersey, with approximately $3.3 billion in assets and $2.6 billion in deposits. Unity Bank, the Company’s wholly owned subsidiary, provides financial services to retail, corporate and small business customers through its robust branch network located in Bergen, Hunterdon, Middlesex, Morris, Ocean, Somerset, Union and Warren Counties in New Jersey and Northampton County in Pennsylvania. For additional information about Unity, visit our website at www.unitybank.com , or call 800-618-BANK.

This news release contains certain forward-looking statements, either expressed or implied, which are provided to assist the reader in understanding anticipated future financial performance. These statements may be identified by use of the words “believe”, “expect”, “intend”, “anticipate”, “estimate”, “project” or similar expressions. These statements involve certain risks, uncertainties, estimates and assumptions made by management, which are subject to factors beyond the Company’s control that could impede its ability to achieve these goals. These factors include those items included in our Annual Report on Form 10-K under the heading “Item 1A. Risk Factors” as amended or supplemented by our subsequent filings with the SEC, as well as general economic conditions, trends in interest rates, the ability of our borrowers to repay their loans, our ability to manage and reduce the level of our nonperforming assets, results of regulatory exams, the impact of any health crisis or national disasters on the Bank, the impact of global military conflicts, its employees and customers, and the impact of uncertain or changing political conditions or any current or future federal government shutdown and uncertainty regarding the federal government’s debt limit or changes in fiscal, monetary, trade or regulatory policy, among other factors.

You should not place undue reliance on any forward-looking statements. These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

News Media & Financial Analyst Contact:
James Davies, FSVP and CFO
(908) 713-4330

PDF available: http://ml.globenewswire.com/Resource/Download/f9e25939-c0b4-45aa-b04d-2dcef7e13e6d

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Unity Bancorp's earnings for the third quarter of 2026?

Unity Bancorp earned $17.4 million, or $1.70 per diluted share, for the quarter ended September 30, 2026. That compares with $14.5 million, or $1.42 per diluted share, for the quarter ended June 30, 2026.

How much did tax credits contribute to Unity Bancorp's quarterly earnings?

The completed purchase of transferable federal investment tax credits provided a one-time $2.5 million benefit to quarterly earnings by reducing tax expense.