Unity Bancorp Q3 2026 earnings rise 20.1% vs. Q2

Third-quarter earnings and the cash dividend rose, while year-to-date noninterest income fell 34.2%.

Rhea-AI Filing Summary

Unity Bancorp (UNTY) reported third-quarter 2026 net income of $17.377 million, up 20.1% from the second quarter, with diluted earnings of $1.70 per share versus $1.42. Net interest income rose 7.7% quarter over quarter to $34.291 million, and net interest margin increased 11 basis points to 4.67%.

As of September 30, 2026, gross loans were $2,780.278 million, up 9.3% from year-end 2025, while deposits were $2,559.498 million, up 10.1%. Third-quarter purchases of $27.6 million in transferable federal investment tax credits and $0.6 million in state tax credits produced $2.6 million of tax savings; the effective tax rate was 13.1%, compared with 22.4% in the prior quarter. Year-to-date noninterest income fell 34.2% to $7.156 million, including net securities losses of $0.973 million versus net gains of $4.026 million in the prior-year nine-month period.

The third-quarter cash dividend was increased 6% to $0.17 per common share. James A. Hughes will retire as CEO effective March 31, 2027, and President George Boyan is to succeed him effective April 1, 2027, while continuing as President of the Company and the Bank.

2 points · 0 major

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

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0 major · 1 point

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Positive

• Moderate pointThird-quarter net income: $17.377 million, up 20.1% quarter over quarter.
• Minor pointThird-quarter cash dividend increased 6% to $0.17 per share.

Negative

• Moderate pointYear-to-date noninterest income fell 34.2% to $7.156 million.

Filing Explained

As of September 30, 2026, cash and available funding together equaled 125.3% of uninsured or uncollateralized deposits.

The 8-K adds that Unity entered into a third-quarter transaction involving a previously nonaccrual $15.5 million commercial real-estate relationship; the company received $3.1 million cash and reported nonaccrual loans fell by $3.1 million.

The company also says it provided financing to the counterparty for approximately 80% of the transaction amount.

The relationship had migrated to nonaccrual in December 2025, and the company says it accounted for nearly half of its $24.1 million in nonaccrual assets at September 30, 2026.

At September 30, 2026, Unity reported $230.1 million of cash and approximately $458.9 million of available funding; together, these equaled 125.3% of uninsured or uncollateralized deposits.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Net income: $17.377 million Diluted earnings per share: $1.70 per share Net interest income: $34.291 million +5 more

8 metrics

Net income $17.377 million Quarter ended September 30, 2026; up 20.1% from the prior quarter.

Diluted earnings per share $1.70 per share Quarter ended September 30, 2026; compared with $1.42 in the prior quarter.

Net interest income $34.291 million Quarter ended September 30, 2026; up 7.7% from the prior quarter.

Net interest margin 4.67% Quarter ended September 30, 2026; increased 11 basis points from the prior quarter.

Total gross loans $2,780.278 million As of September 30, 2026; up 9.3% from December 31, 2025.

Total deposits $2,559.498 million As of September 30, 2026; up 10.1% from December 31, 2025.

Tax savings from tax credit purchases $2.6 million Third quarter of 2026.

Year-to-date noninterest income $7.156 million Nine months ended September 30, 2026; down 34.2% from the prior-year period.

Key Terms

Net interest margin, Nonaccrual assets, Allowance for credit losses, Transferable federal investment tax credits, +1 more

5 terms

Net interest margin financial

"Net interest margin increased 11 basis points"

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.

Nonaccrual assets financial

"nonaccrual assets (including OREO)"

Allowance for credit losses financial

"Allowance for credit losses as a percentage of gross loans"

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

Transferable federal investment tax credits financial

"purchased $27.6 million of transferable federal investment tax credits"

Common Equity Tier 1 Capital Ratio financial

"The Common Equity Tier 1 Capital Ratio increased 1 basis point"

A bank’s common equity tier 1 (CET1) capital ratio measures the size of its strongest loss-absorbing capital—mainly common shares and retained earnings—relative to the bank’s assets after adjusting those assets for how risky they are (riskier loans count more). Think of it as the safety cushion compared with the weight of risky business; investors use it to judge a bank’s ability to survive losses, meet rules, and sustain dividends or growth.

Earnings Snapshot

Net income: $17.377 million

Three months ended September 30, 2026

Net income $17.377 million +20.1% quarter over quarter

Net income per common share - Diluted $1.70 per share +19.7% quarter over quarter

Net interest income $34.291 million +7.7% quarter over quarter

Net interest margin 4.67% +11 basis points quarter over quarter

FAQ

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

How much did UNTY earn in the third quarter of 2026?

Unity Bancorp reported net income of $17.377 million and diluted earnings of $1.70 per share for the quarter ended September 30, 2026. The comparable second-quarter figures were $14.472 million and $1.42 per diluted share.

How much did UNTY save from tax credit purchases?

Unity Bancorp reported $2.6 million in tax savings from purchasing $27.6 million of transferable federal investment tax credits and $0.6 million of state tax credits during the third quarter of 2026.

When will George Boyan become CEO of UNTY?

President George Boyan is to become CEO effective April 1, 2027, succeeding James A. Hughes, whose retirement is effective March 31, 2027. Boyan will continue to serve as President of the Company and the Bank.

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

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Available on EDGAR 10/13/2026 - 06:12 AM EDT Accepted by SEC EDGAR 10/13/2026 - 06:11 AM EDT Learn about SEC filing dates

0000920427false00009204272026-10-132026-10-13

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

October 13, 2026

Date of Report (Date of earliest event reported)

UNITY BANCORP, INC.

(Exact Name of Registrant as Specified in its Charter)

New Jersey

(State or Other Jurisdiction of Incorporation)

1-12431	22-3282551
(Commission File Number)	(IRS Employer Identification No.)

64 Old Highway 22

Clinton, NJ 08809

(Address of Principal Executive Office)

(908) 730-7630

(Registrant’s Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8‑K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a12 under the Exchange Act (17 CFR 240.14a‑12)
☐	Pre-commencement communications pursuant to Rule 14d‑2(b) under the Exchange Act (17 CFR 240.14d‑2(b))
☐	Pre-commencement communications pursuant to Rule 13e‑4(c) under the Exchange Act (17 CFR 240.13e‑4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock	UNTY	NASDAQ

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition

The Registrant issued a press release on October 13, 2026 announcing its financial condition and results of operations for the three and nine months ended September 30, 2026, the full text of which is incorporated by reference in this Item.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit 99.1	Press release issued by the Registrant on October 13, 2026.
Exhibit 104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

	UNITY BANCORP, INC.
	(Registrant)
Date: October 13, 2026
	By:	/s/ James Davies
		James Davies
		First Senior Vice President & Chief Financial Officer

Dil. EPS
$1.70

$0.28 Q/Q, GAAP

$0.09 Q/Q, Core*

ROE
18.11%

225 bps Q/Q, GAAP

25 bps Q/Q, Core*

NIM
4.67%

11 bps Q/Q, Core* & GAAP

ROA
2.29%

28 bps Q/Q, GAAP

3 bps Q/Q, Core*

Exhibit 99.1

For Immediate Release	News Media & Financial Analyst Contact:
Unity Bancorp, Inc. (NASDAQ: UNTY)	James Davies, FSVP & CFO
October 13, 2026	(908) 713-4330

Unity Bancorp Reports Quarterly Earnings of $17.4 Million

*Core earnings is a non-GAAP financial measure. Refer to the Quarterly

Non-GAAP/Core Reconciliation

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.”

Clinton, NJ -- 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.

Quarterly Earnings Highlights

•Net interest income, the primary driver of earnings, was $34.3 million for the quarter ended September 30, 2026, an increase of $2.5 million, as compared to $31.8 million for the quarter ended June 30, 2026. Net interest margin increased 11 basis points to 4.67% for the quarter ended September 30, 2026, compared to the quarter ended June 30, 2026. The increase in net interest income was primarily driven by higher earning asset yields resulting from strong loan originations and the repricing of existing loans. In addition, the Company benefited from successful recovery efforts, which reduced nonaccrual balances and resulted in increased recoveries during the quarter.

•The provision for credit losses on loans was $0.9 million for the quarter ended September 30, 2026, as compared to $1.0 million for the quarter ended June 30, 2026. The provision in the current quarter was primarily driven by loan growth.

•Noninterest income was $2.4 million for the quarter ended September 30, 2026, compared to $1.9 million for the quarter ended June 30, 2026. The $0.5 million increase was primarily due to a decrease in the amount of recognized unrealized losses.

•Noninterest expense was $15.6 million for the quarter ended September 30, 2026, compared to $13.9 million for the quarter ended June 30, 2026. The increase was primarily due to increased compensation and benefits, loan related expenses, processing and communication and director fees.

oThe increase in compensation and benefits expense was driven by an amendment to the Unity Bancorp, Inc. Supplemental Executive Retirement Plan resulting in a one-time pre-tax expense of $769 thousand as previously disclosed in the Form 8-K filed on September 23, 2026.

oThe increase in loan related expenses was driven by a transaction regarding the previously mentioned $15.5 million commercial real estate relationship, which migrated to nonaccrual status in December 2025. Associated with this transfer, the Company incurred a probable broker fee expense of $405 thousand.

oThe increase in director fees was driven by the accelerated vesting of restricted stock upon the passing of former Director Robert ("Bobby") H. Dallas II in accordance with our equity incentive plan, resulting in an expense of $133 thousand.

•The effective tax rate was 13.1% for the quarter ended September 30, 2026, compared to 22.4% for the quarter ended June 30, 2026. During the third quarter of 2026, Unity purchased $27.6 million of transferable federal investment tax credits and $0.6 million of state tax credits, resulting in $2.6 million of tax savings. Furthermore, during the second quarter of 2026, Unity purchased $2.6 million of state tax credits, resulting in $0.2 million of tax savings.

Balance Sheet Highlights

•Total gross loans increased $235.6 million, or 9.3%, from December 31, 2025, primarily due to increases in the commercial, residential construction and consumer loan categories.

•As of September 30, 2026, the allowance for credit losses as a percentage of gross loans was 1.28%, compared to 1.27% as of December 31, 2025.

•As of September 30, 2026, nonaccrual assets (including OREO) were $24.1 million, compared to $31.3 million as of December 31, 2025. The ratio of nonaccrual loans to total loans was 0.81% as of September 30, 2026. The ratio of nonaccrual assets to total assets was 0.74% as of September 30, 2026.

oDuring the fourth quarter of 2025, a well secured $15.5 million commercial real estate relationship migrated to nonaccrual status. During the third quarter of 2026, the Company entered into a transaction involving this loan relationship and provided financing to the counterparty for approximately 80% of the transaction amount. As a result of the transaction and the $3.1 million of cash received, the Company reduced its reported nonaccrual loans by $3.1 million. This isolated relationship accounts for nearly half of nonaccrual assets.

•As of September 30, 2026, total deposits increased $235.4 million, or 10.1%, from December 31, 2025. As of September 30, 2026, uninsured or uncollateralized deposits represented 21.5% of total deposits. The Company’s deposit composition as of September 30, 2026, consisted of 19.3% in noninterest bearing demand deposits, 19.5% in interest-bearing demand deposits, 24.6% in savings deposits and 36.6% in time deposits.

•As of September 30, 2026, borrowed funds decreased $4.7 million from December 31, 2025. Borrowed funds were entirely comprised of borrowings from the FHLB.

•Shareholders’ equity was $388.5 million as of September 30, 2026, compared to $345.6 million as of December 31, 2025. The $42.9 million increase was primarily driven by 2026 earnings, partially offset by dividend payments. During the nine months ended September 30, 2026, Unity Bancorp, Inc. repurchased 6,616 shares at a weighted average price of $49.01 per share.

•Book value per common share was $38.59 as of September 30, 2026, compared to $34.63 as of December 31, 2025. This increase is primarily due to net income partially offset primarily by dividends.

•Below is a summary of Unity Bancorp’s regulatory capital ratios. During the nine months ended September 30, 2026, risk-weighted assets increased $289.8 million driven by strong loan originations and robust loan pipelines.

oThe Leverage Ratio increased 50 basis points to 13.22% at September 30, 2026, compared to 12.72% at December 31, 2025.

oThe Common Equity Tier 1 Capital Ratio increased 1 basis point to 14.46% at September 30, 2026, compared to 14.45% at December 31, 2025.

oThe Tier 1 Capital Ratio decreased 3 basis points to 14.84% at September 30, 2026, compared to 14.87% at December 31, 2025.

oThe Total Capital Ratio decreased 3 basis points to 16.09% at September 30, 2026, compared to 16.12% at December 31, 2025.

•At September 30, 2026, the Company held $230.1 million of cash and cash equivalents. The Company also maintained approximately $458.9 million of funding available from various sources, including the FHLB, FRB Discount Window and other lines of credit. Total available funding plus cash on hand represented 125.3% of uninsured or uncollateralized deposits.

Other Highlights

•In September 2026, the Company announced the upcoming retirement of CEO James A. Hughes effective March 31, 2027, following more than 26 years of dedicated service. President George Boyan will succeed Mr. Hughes as CEO effective April 1, 2027 and will continue to serve as President of the Company and the Bank.

•In August 2026, the Company announced a 6% increase in its third quarter cash dividend to $0.17 per common share. This is in addition to the 8% increase announced in the first quarter.

•In August 2026, the Company was approved by the New Jersey Economic Development Authority Board as a participant in the NJEDA Premier Lender Program, joining a select group of financial institutions committed to advancing small business growth throughout the state.

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.

UNITY BANCORP, INC.

SUMMARY FINANCIAL HIGHLIGHTS

															Sept. 30, 2026 vs.
(In thousands, except percentages and per															June 30, 2026				Sept. 30, 2025
share amounts)		Sept. 30, 2026				June 30, 2026				Sept. 30, 2025					%				%
BALANCE SHEET DATA
Total assets		$	3,250,497			$	3,194,313			$	2,876,365					1.8	%			13.0	%
Total deposits			2,559,498				2,462,549				2,267,484					3.9				12.9
Total gross loans			2,780,278				2,682,494				2,468,527					3.6				12.6
Total securities			122,788				119,300				131,252					2.9				(6.4	)
Total shareholders' equity			388,473				371,813				334,023					4.5				16.3
Allowance for credit losses			35,610				34,551				30,245					3.1				17.7
FINANCIAL DATA - QUARTER TO DATE
Income before provision for income taxes		$	20,007			$	18,652			$	18,866					7.3				6.0
Provision for income taxes			2,630				4,180				4,476					(37.1	)			(41.2	)
Net income		$	17,377			$	14,472			$	14,390					20.1				20.8
Net income per common share - Basic		$	1.73			$	1.44			$	1.43					20.1				21.0
Net income per common share - Diluted			1.70				1.42				1.41					19.7				20.6
PERFORMANCE RATIOS - QUARTER TO DATE (ANNUALIZED)
Return on average assets			2.29	%			2.01	%			2.11	%
Return on average equity			18.11				15.86				17.41
Efficiency ratio**			42.28				40.50				41.47
Cost of funds			2.39				2.38				2.46
Net interest margin			4.67				4.56				4.54
Noninterest expense to average assets			2.06				1.93				1.97
FINANCIAL DATA - YEAR TO DATE
Income before provision for income taxes		$	57,145							$	55,823									2.4
Provision for income taxes			11,008								13,339									(17.5	)
Net income		$	46,137							$	42,484									8.6
Net income per common share - Basic		$	4.60							$	4.23									8.7
Net income per common share - Diluted			4.52								4.15									8.9
PERFORMANCE RATIOS - YEAR TO DATE
Return on average assets			2.12	%							2.15	%
Return on average equity			16.81								18.07
Efficiency ratio**			41.53								42.20
Cost of funds			2.38								2.46
Net interest margin			4.59								4.50
Noninterest expense to average assets			2.00								1.98
SHARE INFORMATION
Market price per share		$	54.22			$	58.69			$	48.87					(7.6	)			10.9
Dividends paid (QTD)			0.17				0.16				0.15					6.3				13.3
Book value per common share			38.59				37.02				33.26					4.2				16.0
Average diluted shares outstanding (QTD)			10,233				10,221				10,233					0.1				-
UNITY BANCORP CAPITAL RATIOS
Total equity to total assets			11.95	%			11.64	%			11.61	%				2.7				2.9
Leverage ratio			13.22				13.17				12.71					0.4				3.6
Common Equity Tier 1 Capital Ratio			14.46				14.19				14.45					1.9				(1.8	)
Risk-based Tier 1 Capital Ratio			14.84				14.57				14.88					1.9				(2.1	)
Risk-based Total Capital Ratio			16.09				15.82				16.13					1.7				(1.9	)
CREDIT QUALITY AND RATIOS
Nonaccrual assets			24,076				34,489				20,514					(30.2	)			17.4
QTD annualized net recoveries (chargeoffs) to QTD average loans			0.02	%			0.03	%			(0.03	)%
Allowance for credit losses to total loans			1.28				1.29				1.23
Nonaccrual loans to total loans			0.81				1.23				0.83
Nonaccrual assets to total assets			0.74				1.08				0.71
** The efficiency ratio is a non-GAAP measure, calculated based on the noninterest expense divided by the sum of net interest income plus non interest income, excluding net gains and losses on securities.

UNITY BANCORP, INC.

QUARTERLY BALANCE SHEETS

															Sept. 30, 2026 vs.
															Dec. 31, 2025					Sept. 30, 2025
(In thousands, except percentages)		Sept. 30, 2026				Dec. 31, 2025				Sept. 30, 2025					%					%
ASSETS
Cash and due from banks		$	25,496			$	19,841			$	20,860					28.5		%			22.2		%
Interest-bearing deposits			204,644				196,678				182,626					4.1					12.1
Cash and cash equivalents			230,140				216,519				203,486					6.3					13.1
Securities:
Debt securities available for sale, at market value			71,575				70,870				82,063					1.0					(12.8	)
Debt securities held to maturity, at book value			37,780				36,576				36,505					3.3					3.5
Equity securities, at market value			13,433				16,569				12,684					(18.9	)				5.9
Total securities			122,788				124,015				131,252					(1.0	)				(6.4	)
Loans:
Loans held for sale			7,589				9,490				15,421					(20.0	)				(50.8	)
SBA loans held for investment			33,272				34,259				37,537					(2.9	)				(11.4	)
Commercial loans			1,717,151				1,518,032				1,465,497					13.1					17.2
Commercial construction loans			138,776				147,215				117,111					(5.7	)				18.5
Residential mortgage loans			672,472				677,221				676,862					(0.7	)				(0.6	)
Consumer loans			102,894				85,219				82,857					20.7					24.2
Residential construction loans			108,124				73,277				73,242					47.6					47.6
Total loans			2,780,278				2,544,713				2,468,527					9.3					12.6
Allowance for credit losses			(35,610	)			(32,342	)			(30,245	)				10.1					17.7
Net loans			2,744,668				2,512,371				2,438,282					9.2					12.6
Premises and equipment, net			17,870				18,022				18,439					(0.8	)				(3.1	)
Bank owned life insurance ("BOLI")			27,186				26,547				26,319					2.4					3.3
Deferred tax assets			16,578				14,640				15,022					13.2					10.4
Federal Home Loan Bank ("FHLB") stock			14,512				14,314				13,218					1.4					9.8
Accrued interest receivable			13,702				12,896				13,288					6.3					3.1
Goodwill			1,516				1,516				1,516					—					—
Other real estate owned ("OREO")			1,472				1,472				—					—				*NM
Prepaid expenses and other assets			60,065				24,340				15,543					146.8					286.4
Total assets		$	3,250,497			$	2,966,652			$	2,876,365					9.6		%			13.0		%
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing demand		$	493,873			$	465,596			$	447,510					6.1		%			10.4		%
Interest-bearing demand			463,036				369,131				362,449					25.4					27.8
Savings			631,112				535,044				535,560					18.0					17.8
Brokered deposits			261,322				274,203				235,122					(4.7	)				11.1
Time deposits			710,155				680,087				686,843					4.4					3.4
Total deposits			2,559,498				2,324,061				2,267,484					10.1					12.9
Borrowed funds			251,098				255,774				231,707					(1.8	)				8.4
Subordinated debentures			10,310				10,310				10,310					—					—
Accrued interest payable			1,902				2,138				1,790					(11.0	)				6.3
Accrued expenses and other liabilities			39,216				28,738				31,051					36.5					26.3
Total liabilities			2,862,024				2,621,021				2,542,342					9.2					12.6
Shareholders' equity:
Common stock			107,910				105,892				105,320					1.9					2.5
Retained earnings			285,152				243,935				265,491					16.9					7.4
Treasury stock, at cost			(3,425	)			(3,101	)			(35,515	)				(10.4	)				(90.4	)
Accumulated other comprehensive loss			(1,164	)			(1,095	)			(1,273	)				6.3					(8.6	)
Total shareholders' equity			388,473				345,631				334,023					12.4					16.3
Total liabilities and shareholders' equity		$	3,250,497			$	2,966,652			$	2,876,365					9.6		%			13.0		%
Shares issued			10,141				10,048				11,681
Shares outstanding			10,068				9,982				10,041
Treasury shares			73				66				1,640

*NM=Not meaningful

UNITY BANCORP, INC.

QTD CONSOLIDATED STATEMENTS OF INCOME

																	Sept. 30, 2026 vs.
		For the three months ended															June 30, 2026									Sept. 30, 2025
(In thousands, except percentages and per share amounts)		Sept. 30, 2026					June 30, 2026					Sept. 30, 2025					$				%					$				%
INTEREST INCOME
Interest-bearing deposits		$	639				$	455				$	472				$	184				40.4		%		$	167				35.4		%
FHLB stock			105					140					121					(35	)			(25.0	)				(16	)			(13.2	)
Securities:
Taxable			1,405					1,391					1,735					14				1.0					(330	)			(19.0	)
Tax-exempt			27					24					18					3				12.5					9				50.0
Total securities			1,432					1,415					1,753					17				1.2					(321	)			(18.3	)
Loans:
SBA loans			755					840					964					(85	)			(10.1	)				(209	)			(21.7	)
Commercial loans			29,044					26,509					24,853					2,535				9.6					4,191				16.9
Commercial construction loans			2,781					3,347					2,344					(566	)			(16.9	)				437				18.6
Residential mortgage loans			11,017					10,411					10,749					606				5.8					268				2.5
Consumer loans			1,901					1,471					1,469					430				29.2					432				29.4
Residential construction loans			2,318					2,047					1,636					271				13.2					682				41.7
Total loans			47,816					44,625					42,015					3,191				7.2					5,801				13.8
Total interest income			49,992					46,635					44,361					3,357				7.2					5,631				12.7
INTEREST EXPENSE
Interest-bearing demand deposits			2,360					2,084					1,998					276				13.2					362				18.1
Savings deposits			3,669					3,291					3,177					378				11.5					492				15.5
Brokered deposits			2,412					2,247					2,003					165				7.3					409				20.4
Time deposits			6,424					6,282					6,247					142				2.3					177				2.8
Borrowed funds and subordinated debentures			836					904					1,080					(68	)			(7.5	)				(244	)			(22.6	)
Total interest expense			15,701					14,808					14,505					893				6.0					1,196				8.2
Net interest income			34,291					31,827					29,856					2,464				7.7					4,435				14.9
Provision for credit losses, loans			941					1,040					1,409					(99	)			(9.5	)				(468	)			(33.2	)
Provision for (release of) credit losses, off-balance sheet			104					127					(80	)				(23	)			(18.1	)				184			*NM
Release of credit losses, securities			—					—					(787	)				—				—					787			*NM
Net interest income after provision for credit losses			33,246					30,660					29,314					2,586				8.4					3,932				13.4
NONINTEREST INCOME
Branch fee income			635					612					450					23				3.8					185				41.1
Service and loan fee income			627					657					607					(30	)			(4.6	)				20				3.3
Gain on sale of SBA loans held for sale, net			252					213					238					39				18.3					14				5.9
Gain on sale of mortgage loans, net			428					406					582					22				5.4					(154	)			(26.5	)
BOLI income			209					213					211					(4	)			(1.9	)				(2	)			(0.9	)
Net securities (losses) gains			(248	)				(643	)				475					395			*NM						(723	)		*NM
Other income			456					463					404					(7	)			(1.5	)				52				12.9
Total noninterest income			2,359					1,921					2,967					438				22.8					(608	)			(20.5	)
NONINTEREST EXPENSE
Compensation and benefits			9,433					8,669					8,430					764				8.8					1,003				11.9
Processing and communications			1,325					1,131					1,150					194				17.2					175				15.2
Occupancy			971					842					838					129				15.3					133				15.9
Furniture and equipment			852					831					838					21				2.5					14				1.7
Professional services			425					456					405					(31	)			(6.8	)				20				4.9
Advertising			431					442					456					(11	)			(2.5	)				(25	)			(5.5	)
Loan related expenses			802					396					151					406				102.5					651				431.1
Deposit insurance			330					300					320					30				10.0					10				3.1
Director fees			418					270					263					148				54.8					155				58.9
Other expenses			611					592					564					19				3.2					47				8.3
Total noninterest expense			15,598					13,929					13,415					1,669				12.0					2,183				16.3
Income before provision for income taxes			20,007					18,652					18,866					1,355				7.3					1,141				6.0
Provision for income taxes			2,630					4,180					4,476					(1,550	)			(37.1	)				(1,846	)			(41.2	)
Net income		$	17,377				$	14,472				$	14,390				$	2,905				20.1		%		$	2,987				20.8		%
Effective tax rate			13.1		%			22.4		%			23.7		%
Net income per common share - Basic		$	1.73				$	1.44				$	1.43
Net income per common share - Diluted			1.70					1.42					1.41
Weighted average common shares outstanding - Basic			10,058					10,041					10,036
Weighted average common shares outstanding - Diluted			10,233					10,221					10,233

*NM=Not meaningful

UNITY BANCORP, INC.

YTD CONSOLIDATED STATEMENTS OF INCOME

		For the nine months ended Sept. 30,									Current YTD vs. Prior YTD
(In thousands, except percentages and per share amounts)		2026				2025					$				%
INTEREST INCOME
Interest-bearing deposits		$	1,652			$	1,291				$	361				28.0		%
FHLB stock			379				433					(54	)			(12.5	)
Securities:
Taxable			4,205				5,257					(1,052	)			(20.0	)
Tax-exempt			69				53					16				30.2
Total securities			4,274				5,310					(1,036	)			(19.5	)
Loans:
SBA loans			2,439				2,753					(314	)			(11.4	)
Commercial loans			80,568				69,518					11,050				15.9
Commercial construction loans			9,165				7,674					1,491				19.4
Residential mortgage loans			32,341				31,086					1,255				4.0
Consumer loans			4,797				4,306					491				11.4
Residential construction loans			6,190				5,390					800				14.8
Total loans			135,500				120,727					14,773				12.2
Total interest income			141,805				127,761					14,044				11.0
INTEREST EXPENSE
Interest-bearing demand deposits			6,354				5,518					836				15.2
Savings deposits			10,120				8,488					1,632				19.2
Brokered deposits			6,925				5,575					1,350				24.2
Time deposits			18,834				19,222					(388	)			(2.0	)
Borrowed funds and subordinated debentures			2,724				3,294					(570	)			(17.3	)
Total interest expense			44,957				42,097					2,860				6.8
Net interest income			96,848				85,664					11,184				13.1
Provision for credit losses, loans			3,024				4,491					(1,467	)			(32.7	)
Provision for credit losses, off-balance sheet			236				16					220			*NM
Release of credit losses, securities			—				(2,824	)			*NM				*NM
Net interest income after provision for credit losses			93,588				83,981					9,607				11.4
NONINTEREST INCOME
Branch fee income			1,736				1,362					374				27.5
Service and loan fee income			2,197				2,007					190				9.5
Gain on sale of SBA loans held for sale, net			892				540					352				65.2
Gain on sale of mortgage loans, net			1,333				1,185					148				12.5
BOLI income			639				546					93				17.0
Net securities (losses) gains			(973	)			4,026					(4,999	)		*NM
Other income			1,332				1,217					115				9.4
Total noninterest income			7,156				10,883					(3,727	)			(34.2	)
NONINTEREST EXPENSE
Compensation and benefits			26,775				24,492					2,283				9.3
Processing and communications			3,602				3,116					486				15.6
Occupancy			2,799				2,527					272				10.8
Furniture and equipment			2,398				2,370					28				1.2
Professional services			1,369				1,118					251				22.5
Advertising			1,267				1,302					(35	)			(2.7	)
Loan related expenses			1,671				462					1,209				261.7
Deposit insurance			930				874					56				6.4
Director fees			948				1,022					(74	)			(7.2	)
Other expenses			1,840				1,758					82				4.7
Total noninterest expense			43,599				39,041					4,558				11.7
Income before provision for income taxes			57,145				55,823					1,322				2.4
Provision for income taxes			11,008				13,339					(2,331	)			(17.5	)
Net income		$	46,137			$	42,484				$	3,653				8.6		%
Effective tax rate			19.3		%		23.9		%
Net income per common share - Basic		$	4.60			$	4.23
Net income per common share - Diluted			4.52				4.15
Weighted average common shares outstanding - Basic			10,037				10,041
Weighted average common shares outstanding - Diluted			10,218				10,231
*NM=Not meaningful

UNITY BANCORP, INC.

QUARTER TO DATE NET INTEREST MARGIN

		For the three months ended
(Dollar amounts in thousands, interest amounts and		Sept. 30, 2026													Sept. 30, 2025
interest rates/yields on a fully tax-equivalent basis)		Average Balance				Interest				Rate/Yield					Average Balance				Interest				Rate/Yield
ASSETS
Interest-earning assets:
Interest-bearing deposits		$	68,313			$	639				3.71		%		$	42,014			$	472				4.46		%
FHLB stock			6,625				105				6.28					7,588				121				6.31
Securities:
Taxable			116,378				1,405				4.83					135,170				1,735				5.14
Tax-exempt			2,484				32				5.13					1,460				24				6.43
Total securities (A)			118,862				1,437				4.84					136,630				1,759				5.15
Loans:
SBA loans			37,858				755				7.98					46,001				964				8.38
Commercial loans			1,670,551				29,044				6.80					1,441,447				24,853				6.75
Commercial construction loans			134,244				2,781				8.11					111,015				2,344				8.26
Residential mortgage loans			676,946				11,017				6.51					674,260				10,749				6.38
Consumer loans			97,003				1,901				7.67					82,851				1,469				6.94
Residential construction loans			101,607				2,318				8.93					68,056				1,636				9.41
Total loans (B)			2,718,209				47,816				6.88					2,423,630				42,015				6.78
Total interest-earning assets		$	2,912,009			$	49,997				6.81		%		$	2,609,862			$	44,367				6.74		%
Noninterest-earning assets:
Cash and due from banks			27,830													23,335
Allowance for credit losses			(34,912	)												(29,641	)
Other assets			104,557													98,914
Total noninterest-earning assets			97,475													92,608
Total assets		$	3,009,484												$	2,702,470
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits		$	423,654			$	2,360				2.21		%		$	363,353			$	1,998				2.18		%
Savings deposits			608,586				3,669				2.39					510,616				3,177				2.47
Brokered deposits			269,744				2,412				3.55					230,728				2,003				3.44
Time deposits			722,327				6,424				3.53					665,691				6,247				3.72
Total interest-bearing deposits			2,024,311				14,865				2.91					1,770,388				13,425				3.01
Borrowed funds and subordinated debentures			86,842				836				3.77					118,350				1,080				3.57
Total interest-bearing liabilities		$	2,111,153			$	15,701				2.95		%		$	1,888,738			$	14,505				3.05		%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits			491,981													453,140
Other liabilities			25,653													32,741
Total noninterest-bearing liabilities			517,634													485,881
Total shareholders' equity			380,697													327,851
Total liabilities and shareholders' equity		$	3,009,484												$	2,702,470
Net interest spread						$	34,296				3.86		%						$	29,862				3.69		%
Tax-equivalent basis adjustment							(5	)												(6	)
Net interest income						$	34,291												$	29,856
Net interest margin											4.67		%											4.54		%

(A) Yields related to securities exempt from federal and state income taxes are stated on a fully tax-equivalent basis, assuming a federal tax rate of 21 percent.

(B) The loan averages are stated net of unearned income, and the averages include loans on which the accrual of interest has been discontinued.

UNITY BANCORP, INC.

QUARTER TO DATE NET INTEREST MARGIN

		For the three months ended
(Dollar amounts in thousands, interest amounts and		Sept. 30, 2026													June 30, 2026
interest rates/yields on a fully tax-equivalent basis)		Average Balance				Interest				Rate/Yield					Average Balance				Interest				Rate/Yield
ASSETS
Interest-earning assets:
Interest-bearing deposits		$	68,313			$	639				3.71		%		$	49,429			$	455				3.69		%
FHLB stock			6,625				105				6.28					7,012				140				8.03
Securities:
Taxable			116,378				1,405				4.83					116,246				1,391				4.78
Tax-exempt			2,484				32				5.13					2,197				28				5.17
Total securities (A)			118,862				1,437				4.84					118,443				1,419				4.79
Loans:
SBA Loans			37,858				755				7.98					41,163				840				8.16
Commercial loans			1,670,551				29,044				6.80					1,566,240				26,509				6.70
Commercial construction loans			134,244				2,781				8.11					167,917				3,347				7.89
Residential mortgage loans			676,946				11,017				6.51					669,245				10,411				6.22
Consumer loans			97,003				1,901				7.67					88,833				1,471				6.55
Residential construction loans			101,607				2,318				8.93					90,478				2,047				8.95
Total loans (B)			2,718,209				47,816				6.88					2,623,877				44,625				6.73
Total interest-earning assets		$	2,912,009			$	49,997				6.81		%		$	2,798,761			$	46,639				6.68		%
Noninterest-earning assets:
Cash and due from banks			27,830													26,650
Allowance for credit losses			(34,912	)												(33,833	)
Other assets			104,557													102,359
Total noninterest-earning assets			97,475													95,176
Total assets		$	3,009,484												$	2,893,937
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits		$	423,654			$	2,360				2.21		%		$	396,128			$	2,084				2.11		%
Savings deposits			608,586				3,669				2.39					570,929				3,291				2.31
Brokered deposits			269,744				2,412				3.55					261,454				2,247				3.45
Time deposits			722,327				6,424				3.53					706,984				6,282				3.56
Total interest-bearing deposits			2,024,311				14,865				2.91					1,935,495				13,904				2.88
Borrowed funds and subordinated debentures			86,842				836				3.77					95,890				904				3.73
Total interest-bearing liabilities		$	2,111,153			$	15,701				2.95		%		$	2,031,385			$	14,808				2.92		%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits			491,981													468,772
Other liabilities			25,653													27,705
Total noninterest-bearing liabilities			517,634													496,477
Total shareholders' equity			380,697													366,075
Total liabilities and shareholders' equity		$	3,009,484												$	2,893,937
Net interest spread						$	34,296				3.86		%						$	31,831				3.76		%
Tax-equivalent basis adjustment							(5	)												(4	)
Net interest income						$	34,291												$	31,827
Net interest margin											4.67		%											4.56		%

(A) Yields related to securities exempt from federal and state income taxes are stated on a fully tax-equivalent basis, assuming a federal tax rate of 21 percent.

(B) The loan averages are stated net of unearned income, and the averages include loans on which the accrual of interest has been discontinued.

UNITY BANCORP, INC.

YEAR TO DATE NET INTEREST MARGIN

		For the nine months ended
(Dollar amounts in thousands, interest amounts and		Sept. 30, 2026													Sept. 30, 2025
interest rates/yields on a fully tax-equivalent basis)		Average Balance				Interest				Rate/Yield					Average Balance				Interest				Rate/Yield
ASSETS
Interest-earning assets:
Interest-bearing deposits		$	59,747			$	1,652				3.70		%		$	38,796			$	1,291				4.45		%
FHLB stock			6,948				379				7.29					7,558				433				7.65
Securities:
Taxable			117,030				4,205				4.79					138,739				5,257				5.05
Tax-exempt			2,059				81				5.25					1,508				62				5.51
Total securities (A)			119,089				4,286				4.80					140,247				5,319				5.06
Loans:
SBA loans			40,186				2,439				8.00					48,082				2,753				7.55
Commercial loans			1,588,793				80,568				6.69					1,377,350				69,518				6.66
Commercial construction loans			151,507				9,165				7.98					121,863				7,674				8.30
Residential mortgage loans			674,845				32,341				6.39					657,540				31,086				6.30
Consumer loans			90,005				4,797				7.03					80,119				4,306				7.09
Residential construction loans			90,849				6,190				8.98					74,938				5,390				9.49
Total loans (B)			2,636,185				135,500				6.78					2,359,892				120,727				6.75
Total interest-earning assets		$	2,821,969			$	141,817				6.72		%		$	2,546,493			$	127,770				6.71		%
Noninterest-earning assets:
Cash and due from banks			26,416													22,684
Allowance for credit losses			(33,924	)												(28,396	)
Other assets			101,956													95,248
Total noninterest-earning assets			94,448													89,536
Total assets		$	2,916,417												$	2,636,029
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits		$	401,882			$	6,354				2.11		%		$	353,310			$	5,518				2.09		%
Savings deposits			581,078				10,120				2.33					497,715				8,488				2.28
Brokered deposits			265,706				6,925				3.48					217,187				5,575				3.43
Time deposits			705,024				18,834				3.57					662,119				19,222				3.88
Total interest-bearing deposits			1,953,690				42,233				2.89					1,730,331				38,803				3.00
Borrowed funds and subordinated debentures			96,909				2,724				3.71					118,548				3,294				3.66
Total interest-bearing liabilities		$	2,050,599			$	44,957				2.93		%		$	1,848,879			$	42,097				3.04		%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits			472,911													440,388
Other liabilities			25,988													32,356
Total noninterest-bearing liabilities			498,899													472,744
Total shareholders' equity			366,919													314,406
Total liabilities and shareholders' equity		$	2,916,417												$	2,636,029
Net interest spread						$	96,860				3.79		%						$	85,673				3.67		%
Tax-equivalent basis adjustment							(12	)												(9	)
Net interest income						$	96,848												$	85,664
Net interest margin											4.59		%											4.50		%

(A) Yields related to securities exempt from federal and state income taxes are stated on a fully tax-equivalent basis, assuming a federal tax rate of 21 percent.

(B) The loan averages are stated net of unearned income, and the averages include loans on which the accrual of interest has been discontinued.

UNITY BANCORP, INC.

QUARTERLY ALLOWANCE FOR CREDIT LOSSES AND LOAN QUALITY SCHEDULES

(Amounts in thousands, except percentages)		Sept. 30, 2026				June 30, 2026				March 31, 2026				Dec. 31, 2025				Sept. 30, 2025
ALLOWANCE FOR CREDIT LOSSES:
Balance, beginning of period		$	34,551			$	33,354			$	32,342			$	30,245			$	29,012
Provision for credit losses for loans			941				1,040				1,043				2,208				1,409
			35,492				34,394				33,385				32,453				30,421
Less: Chargeoffs
SBA loans			—				—				50				265				211
Commercial loans			—				—				140				—				—
Residential mortgage loans			—				—				—				46				85
Consumer loans			2				—				10				11				30
Residential construction loans			—				—				40				—				—
Total chargeoffs			2				—				240				322				326
Add: Recoveries
SBA loans			15				56				5				4				50
Commercial loans			98				95				93				196				92
Residential mortgage loans			—				—				100				—				—
Consumer loans			7				6				11				11				8
Residential construction loans			—				—				—				—				—
Total recoveries			120				157				209				211				150
Net recoveries (chargeoffs)			118				157				(31	)			(111	)			(176	)
Balance, end of period		$	35,610			$	34,551			$	33,354			$	32,342			$	30,245
ASSET QUALITY INFORMATION:
Nonaccrual loans:
SBA loans		$	788			$	1,616			$	1,645			$	1,751			$	4,225
Commercial loans			14,635				17,743				18,375				18,473				4,006
Residential mortgage loans			7,000				10,290				8,915				8,173				11,174
Consumer loans			55				2,926				1,557				1,268				938
Residential construction loans			126				442				128				171				171
Total nonaccrual loans			22,604				33,017				30,620				29,836				20,514
OREO			1,472				1,472				1,472				1,472				—
Nonaccrual assets		$	24,076			$	34,489			$	32,092			$	31,308			$	20,514
Loans 90 days past due & still accruing		$	2,647			$	—			$	90			$	—			$	356
Nonaccrual loans to total loans			0.81		%		1.23		%		1.18		%		1.17		%		0.83		%
Nonaccrual assets to total assets			0.74				1.08				1.06				1.06				0.71
Allowance for credit losses to:
Total loans			1.28		%		1.29		%		1.28		%		1.27		%		1.23		%
Total nonaccrual loans			157.54				104.65				108.93				108.40				147.44

UNITY BANCORP, INC.

QUARTERLY FINANCIAL DATA

(In thousands, except %'s, employee, office and per share amounts)		Sept. 30, 2026				June 30, 2026				March 31, 2026				Dec. 31, 2025				Sept. 30, 2025
SUMMARY OF INCOME:
Total interest income		$	49,992			$	46,635			$	45,179			$	45,868			$	44,361
Total interest expense			15,701				14,808				14,449				14,499				14,505
Net interest income			34,291				31,827				30,730				31,369				29,856
Provision for credit losses			1,045				1,167				1,048				2,258				542
Net interest income after provision for credit losses			33,246				30,660				29,682				29,111				29,314
Total noninterest income			2,359				1,921				2,876				3,898				2,967
Total noninterest expense			15,598				13,929				14,071				13,315				13,415
Income before provision for income taxes			20,007				18,652				18,487				19,694				18,866
Provision for income taxes			2,630				4,180				4,199				4,222				4,476
Net income		$	17,377			$	14,472			$	14,288			$	15,472			$	14,390
Net income per common share - Basic		$	1.73			$	1.44			$	1.43			$	1.55			$	1.43
Net income per common share - Diluted			1.70				1.42				1.40				1.52				1.41
COMMON SHARE DATA:
Market price per share		$	54.22			$	58.69			$	51.83			$	51.72			$	48.87
Dividends paid			0.17				0.16				0.16				0.15				0.15
Book value per common share			38.59				37.02				35.66				34.63				33.26
Weighted average common shares outstanding - Basic			10,058				10,041				10,012				10,008				10,036
Weighted average common shares outstanding - Diluted			10,233				10,221				10,199				10,195				10,233
Issued common shares			10,141				10,116				10,114				10,048				11,681
Outstanding common shares			10,068				10,043				10,041				9,982				10,041
Treasury shares			73				73				73				66				1,640
QUARTERLY PERFORMANCE RATIOS (ANNUALIZED):
Return on average assets			2.29		%		2.01		%		2.04		%		2.20		%		2.11		%
Return on average equity			18.11				15.86				16.38				18.08				17.41
Efficiency ratio **			42.28				40.50				41.77				39.52				41.47
Noninterest expense to average assets			2.06				1.93				2.01				1.89				1.97
BALANCE SHEET DATA:
Total assets		$	3,250,497			$	3,194,313			$	3,027,327			$	2,966,652			$	2,876,365
Total securities			122,788				119,300				115,268				124,015				131,252
Total loans			2,780,278				2,682,494				2,601,656				2,544,713				2,468,527
Allowance for credit losses			35,610				34,551				33,354				32,342				30,245
Total deposits			2,559,498				2,462,549				2,379,140				2,324,061				2,267,484
Total shareholders' equity			388,473				371,813				358,095				345,631				334,023
TAX EQUIVALENT YIELDS AND RATES:
Interest-earning assets			6.81		%		6.68		%		6.66		%		6.72		%		6.74		%
Interest-bearing liabilities			2.95				2.92				2.92				2.94				3.05
Net interest spread			3.86				3.76				3.74				3.78				3.69
Net interest margin			4.67				4.56				4.53				4.60				4.54
CREDIT QUALITY:
Nonaccrual assets		$	24,076			$	34,489			$	32,092			$	31,308			$	20,514
QTD annualized net recoveries (chargeoffs) to QTD average loans			0.02		%		0.03		%		(0.01	)	%		(0.02	)	%		(0.03	)	%
Allowance for credit losses to total loans			1.28				1.29				1.28				1.27				1.23
Nonaccrual loans to total loans			0.81				1.23				1.18				1.17				0.83
Nonaccrual assets to total assets			0.74				1.08				1.06				1.06				0.71
UNITY BANCORP CAPITAL RATIOS
Total equity to total assets			11.95		%		11.64		%		11.83		%		11.65		%		11.61		%
Leverage ratio			13.22				13.17				12.93				12.72				12.71
Common Equity Tier 1 Capital Ratio			14.46				14.19				14.50				14.45				14.45
Risk-based Tier 1 Capital Ratio			14.84				14.57				14.91				14.87				14.88
Risk-based Total Capital Ratio			16.09				15.82				16.16				16.12				16.13
Number of banking offices			22				22				22				22				22
Employee Full-Time Equivalent			239				249				244				242				238

** The efficiency ratio is a non-GAAP measure, calculated based on the noninterest expense divided by the sum of net interest income plus non interest income, excluding net gains and losses on securities.

UNITY BANCORP, INC.

LOAN PORTFOLIO COMPOSITION

(In thousands, except percentages)		Sept. 30, 2026				%					Dec. 31, 2025				%
Loans Held for Sale		$	7,589				0.3		%		$	9,490				0.4
SBA Loans			33,272				1.2					34,259				1.3
Commercial Loans
SBA 504			50,230				1.8					43,802				1.7
Commercial & industrial			206,292				7.4					183,163				7.2
Commercial mortgage - owner occupied			753,277				27.1					660,427				26.0
Commercial mortgage - nonowner occupied			617,076				22.2					531,954				20.9
Other			90,276				3.2					98,686				39.0
Total Commercial Loans			1,717,151				61.7					1,518,032				59.7
Commercial Construction Loans			138,776				5.0					147,215				5.8
Residential Mortgage Loans
Primary residence			472,868				17.0					472,482				18.6
Secondary residence			70,944				2.6					71,656				2.8
Investor property			128,660				4.6					133,083				5.2
Total Residential Mortgage Loans			672,472				24.2					677,221				26.6
Consumer Loans
Home equity			100,047				3.6					82,488				3.2
Consumer other			2,847				0.1					2,731				0.1
Total Consumer Loans			102,894				3.7					85,219				3.3
Residential Construction Loans			108,124				3.9					73,277				2.9
Total Gross Loans		$	2,780,278				100.0		%		$	2,544,713				100.0		%

UNITY BANCORP, INC.

QUARTERLY NON-GAAP / CORE RECONCILIATION

		For the three months ended
(In thousands, except percentages and per share amounts)		Sept. 30, 2026				June 30, 2026				Sept. 30, 2025
Adjusted net income:
Net income (GAAP)		$	17,377			$	14,472			$	14,390
Non-recurring transactions:
Less: Release of credit losses, securities			—				—				(787	)
Less: Net securities gains, unrealized			—				—				(218	)
Less: Federal investment tax credit benefit			(2,500	)			—				—
Add: One-time SERP expense			769				—				—
Adjusted (provision for) release of income taxes			(188	)			—				238
Adjusted net income (non-GAAP)		$	15,458			$	14,472			$	13,623
Adjusted net income per common share:
Weighted average common shares outstanding - Basic			10,058				10,041				10,036
Weighted average common shares outstanding - Diluted			10,233				10,221				10,233
Net income per common share - Basic (GAAP)		$	1.73			$	1.44			$	1.43
Net income per common share - Diluted (GAAP)			1.70				1.42				1.41
Adjusted net income per common share - Basic (non-GAAP)		$	1.54			N/A				$	1.36
Adjusted net income per common share - Diluted (non-GAAP)			1.51			N/A					1.33
Adjusted return on average assets:
Total QTD average assets		$	3,009,484			$	2,893,937			$	2,702,470
Return on average assets (GAAP)			2.29		%		2.01		%		2.11		%
Adjusted return on average assets (non-GAAP)			2.04			N/A					2.00
Adjusted return on average equity:
Total QTD average equity		$	380,697			$	366,075			$	327,851
Return on average equity (GAAP)			18.11		%		15.86		%		17.41		%
Adjusted return on average equity (non-GAAP)			16.11			N/A					16.49

This press release contains certain supplemental financial information, described in the table above, which has been determined by methods other than U.S. Generally Accepted Accounting Principles (“GAAP”) that management uses in its analysis of its performance. These non-GAAP financial measures are “adjusted net income,” “adjusted net income per share - basic,” “adjusted net income per share - diluted,” “adjusted return on average assets,” and "adjusted return on average equity."

Management believes that these non-GAAP financial measures provide valuable insights into understanding our financial results by excluding certain items that can distort our core business results. This allows investors to better understand our ongoing operations and assess our future potential, while still being transparent about the adjustments made to arrive at these non-GAAP figures. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and the Company strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

In addition to the items noted above, defined footnotes are included in the Quarterly Non-GAAP/Core Reconciliation table above. Income annualized is calculated using income for the period divided by the number of days in the period, then multiplied by total days in the year. Average equity is calculated using the sum of daily equity balance for the period, divided by the number of days in the period.

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