Unity Bancorp (UNTY) shifts deferred compensation plan to variable interest
Rhea-AI Filing Summary
Unity Bancorp, Inc. reported a change to the deferred compensation plan of its subsidiary, Unity Bank. Effective December 18, 2025, when an eligible participant chooses to receive deferred compensation benefits in ten equal annual installments instead of a lump sum, the interest credited on the account will be based on a variable annual rate. This rate will equal the Prime Rate for the previous anniversary date plus 1.0%, with a minimum of 4.0% and a maximum of 10.0%.
Before this change, the interest rate was fixed as of the participant’s termination of service. Each installment will continue to consist of one-tenth of the deferral account balance determined at termination, plus accrued and unpaid interest. All other terms of the deferred compensation plan remain in effect.
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8-K Event Classification
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Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
On December 18, 2025, the Registrant and Unity Bank, the Registrant’s wholly owned subsidiary and a New Jersey State chartered commercial bank (the “Bank”), amended the Bank’s Deferred Compensation Plan (the “Plan”). The amendment modifies the interest payable to both Plan participants and, if applicable, his or her beneficiary, when an eligible participant elects to receive benefits in equal annual installments over ten years (in lieu of a lump sum). Under the amendment, immediately prior to each annual installment payment, interest will be credited at a variable annual rate, equal to the Prime Rate for the previous anniversary date plus 1.0%, subject to a minimum rate of 4.0% and a maximum rate of 10.0%. Prior to the amendment, the interest rate was fixed as of the participant’s termination of service. Each installment will consist of one-tenth of the deferral account balance determined as of the participant’s termination of service, plus accrued and unpaid interest. Except as amended, the original Plan remains in full force and effect..
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit 10.1 | Amendment to the Registrant’s Deferred Compensation Plan |
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: December 18, 2025 | ||
By: | /s/ George Boyan | |
George Boyan | ||
Executive Vice President and Chief Financial Officer | ||