8-K

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SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

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FORM 8-K

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CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

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April 11, 2025

Date of Report (Date of earliest event reported)

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UNITY BANCORP, INC.

(Exact Name of Registrant as Specified in its Charter)

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New Jersey

(State or Other Jurisdiction of Incorporation)

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

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64 Old Highway 22

Clinton , NJ **** 08809

(Address of Principal Executive Office)

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( 908 ) 730-7630

(Registrant’s Telephone Number, Including Area Code)

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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:

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☐	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))

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

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

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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).

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Emerging growth company ☐

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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. ☐

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Item 2.02            Results of Operation and Financial Condition

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The Registrant issued a press release on April 11, 2025 announcing results for the three months ended March 31, 2025, the full text of which is incorporated by reference to this Item.

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Item 9.01             Financial Statements and Exhibits

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(d) Exhibits

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Exhibit 99.1	Press release issued by the Registrant on April 11, 2025.

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SIGNATURES

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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.

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October 13, 2023	​	​
​	UNITY BANCORP, INC.
​	(Registrant)
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Date: April 11, 2025	​
​	By:	/s/ George Boyan
​	​	George Boyan
​	​	Executive Vice President and Chief Financial Officer

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Exhibit 99.1

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Clinton, NJ -- Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $11.6 million, or $1.13 per diluted share, for the quarter ended March 31, 2025, compared to net income of $11.5 million, or $1.13 per diluted share for the quarter ended December 31, 2024. This represents a 0.8% increase in net income.

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First Quarter Earnings Highlights

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●	Net interest income, the primary driver of earnings, was $27.3 million for the quarter ended March 31, 2025, an increase of $0.8 million, as compared to $26.5 million for the quarter ended December 31, 2024. Net interest margin (“NIM”) increased 9 basis points to 4.46% for the quarter ended March 31, 2025, compared to the quarter ended December 31, 2024. The increase was primarily due to the cost of interest-bearing liabilities decreasing, complemented by an increase in the yield on interest-earning assets.
●	The provision for credit losses on loans was $1.4 million for the quarter ended March 31, 2025, compared to $0.5 million for the quarter ended December 31, 2024.  The provision in the current quarter was primarily driven by loan growth.
---	---
●	There was no provision for credit losses on Available For Sale (“AFS”) debt securities for the quarter ended March 31, 2025, as compared to a provision of $0.9 million for the quarter ended December 31, 2024. During the quarter ended March 31, 2025, Unity entered into a modification agreement with the issuer of the troubled AFS debt security. Prior to the modification, Unity held the $5.0 million par of the original senior debt security. As a component of the modification agreement, $2.1 million par of senior debt was converted to common equity of the issuer. The common equity was held as restricted equity as of March 31, 2025.
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●	Noninterest income was $2.1 million for the quarter ended March 31, 2025, compared to $1.9 million for the quarter ended December 31, 2024. The $0.2 million increase was primarily due to increased service & loan fee income. This increase was offset by lower gains on sale of mortgage loans. The Bank sold $1.2 million of SBA loans during the quarter ended March 31, 2025, compared to $0.4 million during the quarter ended December 31, 2024. Additionally, the Bank sold $1.0 million of AFS debt securities during the quarter ended March 31, 2025 and realized an $11 thousand loss.
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●	Noninterest expense was $12.6 million for the quarter ended March 31, 2025, level with the quarter ended December 31, 2024. During the quarter ended March 31, 2025, there were one-time expenses of $0.2 million related to the resignation of a Director. The resignation was not in connection with any disagreement with the Company or the Bank. For the quarter ending March 31, 2025, employee benefits recorded in the Salaries and Benefits line item, were $1.2 million, compared to $1.7 million for the quarter ended December 31, 2024.
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●	The effective tax rate was 24.8% for the quarter ended March 31, 2025, compared to 20.6% for the quarter ended December 31, 2024.
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Balance Sheet Highlights

●	Total gross loans increased $84.5 million, or 3.7%, from December 31, 2024, primarily due to increases in the commercial  and mortgage loan categories. This was partially offset by decreases in the residential construction category.
●	As of March 31, 2025, the allowance for credit losses as a percentage of gross loans was 1.18%.
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●	Total deposits increased $75.1 million, or 3.6%, from December 31, 2024.  As of March 31, 2025, 20.0% of total deposits were uninsured or uncollateralized. The Company’s deposit composition as of March 31, 2025, consisted of 20.9% in noninterest bearing demand deposits, 17.4% in interest-bearing demand deposits, 22.7% in savings deposits and 39.0% in time deposits.
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●	As of March 31, 2025, investments comprised 5.1% of total assets. Available for sale debt securities (“AFS”) were $90.4 million or 3.3% of total assets. Held to maturity (“HTM”) debt securities were $40.9 million or 1.5% of total assets. As of March 31, 2025, pre-tax net unrealized losses on AFS and HTM were $2.8 million and $6.5 million, respectively. These pre-tax unrealized losses represent approximately 2.9% of the Company’s Tier 1 capital. Equity securities were $10.7 million or 0.4% of total assets as of March 31, 2025, of which $0.8 million represented restricted equity, net of valuation allowance.
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●	Borrowed funds increased $22.8 million from December 31, 2024. Borrowed funds were entirely comprised of borrowings from the FHLB.
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●	Shareholders’ equity was $306.1 million as of March 31, 2025, compared to $295.6 million as of December 31, 2024. The $10.5 million increase was primarily driven by 2025 earnings, partially offset by dividend payments. Unity Bancorp did not repurchase any shares during the three months ended March 31, 2025.
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●	Book value per common share was $30.38 as of March 31, 2025, compared to $29.48 as of December 31, 2024. This increase primarily reflects earnings partially offset by dividend payouts.
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●	Below is a summary of Unity Bancorp’s regulatory capital ratios:
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o	The Leverage Ratio increased 10 basis points to 12.32% at March 31, 2025, compared to 12.22% at December 31, 2024.
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o	The Common Equity Tier 1 Capital Ratio decreased 3 basis points to 13.87% at March 31, 2025, compared to 13.90% at December 31, 2024.
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o	The Tier 1 Capital Ratio decreased 4 basis points to 14.33% at March 31, 2025, compared to 14.37% at December 31, 2024.
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o	The Total Capital Ratio decreased 4 basis points, to 15.58% at March 31, 2025, compared to 15.62% at December 31, 2024.
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●	At March 31, 2025, the Company held $211.6 million of cash and cash equivalents. The Company also maintained approximately $522.2 million of funding available from various sources, including the FHLB, FRB Discount Window and other lines of credit. Additionally, the Company has the ability to pledge additional securities to further increase borrowing capacity. Total available funding plus cash on hand represented 168.8% of uninsured or uncollateralized deposits.
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●	As of March 31, 2025, nonaccrual assets were $18.0 million, compared to $15.0 million as of December 31, 2024. As of March 31, 2025, nonaccrual assets included $1.1 million related to AFS debt securities. The ratio of nonaccrual loans to total loans was 0.72% as of March 31, 2025. The ratio of nonaccrual assets to total assets was 0.65% as of March 31, 2025.
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Other Highlights

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❖	In March 2025, Unity Bank once again, received a 5-Star Superior rating from BauerFinancial. A 5-Star Superior rating indicates that Unity Bank is one of the strongest banks in the nation, excelling in the areas of capital, loan qualify, profitability and more.

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Unity Bancorp, Inc. is a financial services organization headquartered in Clinton, New Jersey, with approximately $2.8 billion in assets and $2.2 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.

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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 IA-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, and the impact of any health crisis or national disasters on the Bank, its employees and customers, among other factors.

UNITY BANCORP, INC.

SUMMARY FINANCIAL HIGHLIGHTS

March 31, 2025

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​	​	​	​	​	​	​	​	​	​	​	​	March 31, 2025 vs.			​
​	​	​	​	​	​	​	​	​	​	​	​	December 31, 2024	​	March 31, 2024	​
(In thousands, except percentages and per share amounts)	​	March 31, 2025		​	December 31, 2024		​	March 31, 2024		​	​	%	​	%	​
BALANCE SHEET DATA	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total assets	​	$	2,767,943	​	$	2,654,017	​	$	2,568,088	​	​	4.3	%	7.8	%
Total deposits	​	​	2,175,398	​	​	2,100,313	​	​	1,961,270	​	​	3.6	​	10.9	​
Total gross loans	​	​	2,345,130	​	​	2,260,657	​	​	2,174,457	​	​	3.7	​	7.8	​
Total securities	​	​	142,092	​	​	145,028	​	​	138,702	​	​	(2.0)	​	2.4	​
Total shareholders' equity	​	​	306,142	​	​	295,583	​	​	266,761	​	​	3.6	​	14.8	​
Allowance for credit losses	​	​	27,651	​	​	26,788	​	​	26,080	​	​	3.2	​	6.0	​
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FINANCIAL DATA - QUARTER TO DATE	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Income before provision for income taxes	​	$	15,424	​	$	14,489	​	$	12,784	​	​	6.5	​	20.7	​
Provision for income taxes	​	​	3,826	​	​	2,984	​	​	3,198	​	​	28.2	​	19.6	​
Net income	​	$	11,598	​	$	11,505	​	$	9,586	​	​	0.8	​	21.0	​
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Net income per common share - Basic	​	$	1.15	​	$	1.15	​	$	0.95	​	​	-	​	21.1	​
Net income per common share - Diluted	​	​	1.13	​	​	1.13	​	​	0.93	​	​	-	​	21.5	​
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PERFORMANCE RATIOS - QUARTER TO DATE (annualized)	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Return on average assets	​	​	1.83	%	​	1.83	%	​	1.58	%	​	​	​	​	​
Return on average equity	​	​	15.56	​	​	15.77	​	​	14.49	​	​	​	​	​	​
Efficiency ratio**	​	​	42.89	​	​	44.44	​	​	47.57	​	​	​	​	​	​
Cost of funds	​	​	2.46	​	​	2.51	​	​	2.65	​	​	​	​	​	​
Net interest margin	​	​	4.46	​	​	4.37	​	​	4.09	​	​	​	​	​	​
Noninterest expense to average assets	​	​	1.99	​	​	2.01	​	​	2.00	​	​	​	​	​	​
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SHARE INFORMATION	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Market price per share	​	$	40.70	​	$	43.61	​	$	27.60	​	​	(6.7)	​	47.5	​
Dividends paid (QTD)	​	​	0.14	​	​	0.13	​	​	0.13	​	​	7.7	​	7.7	​
Book value per common share	​	​	30.38	​	​	29.48	​	​	26.56	​	​	3.1	​	14.4	​
Average diluted shares outstanding (QTD)	​	​	10,247	​	​	10,204	​	​	10,276	​	​	0.4	​	(0.3)	​
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UNITY BANCORP CAPITAL RATIOS	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total equity to total assets	​	​	11.06	%	​	11.14	%	​	10.39	%	​	(0.7)	​	6.4	​
Leverage ratio	​	​	12.32	​	​	12.22	​	​	11.39	​	​	0.8	​	8.2	​
Common Equity Tier 1 Capital Ratio	​	​	13.87	​	​	13.90	​	​	12.90	​	​	(0.2)	​	7.5	​
Risk-based Tier 1 Capital Ratio	​	​	14.33	​	​	14.37	​	​	13.38	​	​	(0.3)	​	7.1	​
Risk-based Total Capital Ratio	​	​	15.58	​	​	15.62	​	​	14.63	​	​	(0.3)	​	6.5	​
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CREDIT QUALITY AND RATIOS	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Nonaccrual assets	​	$	17,990	​	$	15,046	​	$	16,890	​	​	19.6	​	6.5	​
QTD annualized net (chargeoffs) to QTD average loans	​	​	(0.09)	%	​	(0.12)	%	​	(0.08)	%	​	​	​	​	​
Allowance for credit losses to total loans	​	​	1.18	​	​	1.18	​	​	1.20	​	​	​	​	​	​
Nonaccrual loans to total loans	​	​	0.72	​	​	0.58	​	​	0.78	​	​	​	​	​	​
Nonaccrual assets to total assets	​	​	0.65	​	​	0.57	​	​	0.66	​	​	​	​	​	​
** 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.
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UNITY BANCORP, INC.

CONSOLIDATED BALANCE SHEETS

March 31, 2025

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​	​	​	​	​	​	​	​	​	​	​	​	March 31, 2025 vs.			​
​	​	​	​	​	​	​	​	​	​	​	​	December 31, 2024	​	March 31, 2024	​
(In thousands, except percentages)	​	March 31, 2025		​	December 31, 2024		​	March 31, 2024		​	​	%	​	%	​
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ASSETS	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Cash and due from banks	​	$	26,378	​	$	20,206	​	$	20,619	​	​	30.5	%	27.9	%
Interest-bearing deposits	​	​	185,215	​	​	160,232	​	​	162,367	​	​	15.6	​	14.1	​
Cash and cash equivalents	​	​	211,593	​	​	180,438	​	​	182,986	​	​	17.3	​	15.6	​
Securities:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Debt securities available for sale, at market value, net of valuation allowance	​	​	90,438	​	​	93,884	​	​	94,682	​	​	(3.7)	​	(4.5)	​
Debt securities held to maturity, at book value	​	​	40,947	​	​	41,294	​	​	36,089	​	​	(0.8)	​	13.5	​
Equity securities, at market value, net of restricted shares' valuation allowance	​	​	10,707	​	​	9,850	​	​	7,931	​	​	8.7	​	35.0	​
Total securities	​	​	142,092	​	​	145,028	​	​	138,702	​	​	(2.0)	​	2.4	​
Loans:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Loans held for sale	​	​	14,000	​	​	12,163	​	​	18,439	​	​	15.1	​	(24.1)	​
SBA loans held for investment	​	​	36,686	​	​	36,859	​	​	39,009	​	​	(0.5)	​	(6.0)	​
SBA PPP loans	​	​	1,307	​	​	1,450	​	​	2,168	​	​	(9.9)	​	(39.7)	​
Commercial loans	​	​	1,486,854	​	​	1,411,629	​	​	1,291,319	​	​	5.3	​	15.1	​
Residential mortgage loans	​	​	654,250	​	​	630,927	​	​	627,464	​	​	3.7	​	4.3	​
Consumer loans	​	​	78,620	​	​	76,711	​	​	72,275	​	​	2.5	​	8.8	​
Residential construction loans	​	​	73,413	​	​	90,918	​	​	123,783	​	​	(19.3)	​	(40.7)	​
Total loans	​	​	2,345,130	​	​	2,260,657	​	​	2,174,457	​	​	3.7	​	7.8	​
Allowance for credit losses	​	​	(27,651)	​	​	(26,788)	​	​	(26,080)	​	​	3.2	​	6.0	​
Net loans	​	​	2,317,479	​	​	2,233,869	​	​	2,148,377	​	​	3.7	​	7.9	​
Premises and equipment, net	​	​	18,715	​	​	18,778	​	​	19,281	​	​	(0.3)	​	(2.9)	​
Bank owned life insurance ("BOLI")	​	​	25,925	​	​	25,773	​	​	25,295	​	​	0.6	​	2.5	​
Deferred tax assets	​	​	14,627	​	​	14,106	​	​	12,681	​	​	3.7	​	15.3	​
Federal Home Loan Bank ("FHLB") stock	​	​	13,583	​	​	12,507	​	​	15,896	​	​	8.6	​	(14.6)	​
Accrued interest receivable	​	​	12,998	​	​	12,691	​	​	13,165	​	​	2.4	​	(1.3)	​
Goodwill	​	​	1,516	​	​	1,516	​	​	1,516	​	​	-	​	-	​
Prepaid expenses and other assets	​	​	9,415	​	​	9,311	​	​	10,189	​	​	1.1	​	(7.6)	​
Total assets	​	$	2,767,943	​	$	2,654,017	​	$	2,568,088	​	​	4.3	%	7.8	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
LIABILITIES AND SHAREHOLDERS' EQUITY				​	​	​	​	​	​	​	​	​	​	​	​
Liabilities:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Deposits:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Noninterest-bearing demand	​	$	454,425	​	$	440,803	​	$	395,520	​	​	3.1	%	14.9	%
Interest-bearing demand	​	​	351,485	​	​	321,780	​	​	325,174	​	​	9.2	​	8.1	​
Savings	​	​	491,449	​	​	491,175	​	​	504,210	​	​	0.1	​	(2.5)	​
Brokered deposits	​	​	202,323	​	​	217,931	​	​	235,755	​	​	(7.2)	​	(14.2)	​
Time deposits	​	​	675,716	​	​	628,624	​	​	500,611	​	​	7.5	​	35.0	​
Total deposits	​	​	2,175,398	​	​	2,100,313	​	​	1,961,270	​	​	3.6	​	10.9	​
Borrowed funds	​	​	243,292	​	​	220,504	​	​	299,397	​	​	10.3	​	(18.7)	​
Subordinated debentures	​	​	10,310	​	​	10,310	​	​	10,310	​	​	-	​	-	​
Accrued interest payable	​	​	2,147	​	​	1,702	​	​	1,551	​	​	26.1	​	38.4	​
Accrued expenses and other liabilities	​	​	30,654	​	​	25,605	​	​	28,799	​	​	19.7	​	6.4	​
Total liabilities	​	​	2,461,801	​	​	2,358,434	​	​	2,301,327	​	​	4.4	​	7.0	​
Shareholders' equity:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Common stock	​	​	104,033	​	​	103,936	​	​	101,676	​	​	0.1	​	2.3	​
Retained earnings	​	​	237,518	​	​	227,331	​	​	199,380	​	​	4.5	​	19.1	​
Treasury stock, at cost	​	​	(33,577)	​	​	(33,577)	​	​	(31,443)	​	​	-	​	6.8	​
Accumulated other comprehensive loss	​	​	(1,832)	​	​	(2,107)	​	​	(2,852)	​	​	(13.1)	​	(35.8)	​
Total shareholders' equity	​	​	306,142	​	​	295,583	​	​	266,761	​	​	3.6	​	14.8	​
Total liabilities and shareholders' equity	​	$	2,767,943	​	$	2,654,017	​	$	2,568,088	​	​	4.3	%	7.8	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Shares issued	​	​	11,666	​	​	11,616	​	​	11,555	​	​	​	​	​	​
Shares outstanding	​	​	10,076	​	​	10,026	​	​	10,044	​	​	​	​	​	​
Treasury shares	​	​	1,590	​	​	1,590	​	​	1,511	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
*NM=Not meaningful	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​

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UNITY BANCORP, INC.

QTD CONSOLIDATED STATEMENTS OF INCOME

March 31, 2025

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	March 31, 2025 vs.											​
​	​	For the three months ended								​		​					​	March 31, 2024					​
(In thousands, except percentages and per share amounts)	​	March 31, 2025		​	December 31, 2024		​	March 31, 2024		​	​			​	%		​		​	%		​
INTEREST INCOME	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest-bearing deposits	​	$	332	​	$	484	​	$	420	​	​		(152)	​	​	(31.4)	%		​	​	(21.0)	%
FHLB stock	​	​	182	​	​	164	​	​	280	​	​	​	18	​	​	11.0	​	​	​	​	(35.0)	​
Securities:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Taxable	​	​	1,786	​	​	1,809	​	​	1,849	​	​	​	(23)	​	​	(1.3)	​	​	​	​	(3.4)	​
Tax-exempt	​	​	18	​	​	17	​	​	18	​	​	​	1	​	​	5.9	​	​	​	​	-	​
Total securities	​	​	1,804	​	​	1,826	​	​	1,867	​	​	​	(22)	​	​	(1.2)	​	​	​	​	(3.4)	​
Loans:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
SBA loans	​	​	929	​	​	1,096	​	​	1,333	​	​	​	(167)	​	​	(15.2)	​	​	​	​	(30.3)	​
SBA PPP loans	​	​	5	​	​	5	​	​	8	​	​	​	-	​	​	-	​	​	​	​	(37.5)	​
Commercial loans	​	​	24,260	​	​	23,500	​	​	20,830	​	​	​	760	​	​	3.2	​	​	​	​	16.5	​
Residential mortgage loans	​	​	9,947	​	​	9,578	​	​	9,219	​	​	​	369	​	​	3.9	​	​	​	​	7.9	​
Consumer loans	​	​	1,346	​	​	1,379	​	​	1,402	​	​	​	(33)	​	​	(2.4)	​	​	​	​	(4.0)	​
Residential construction loans	​	​	1,996	​	​	2,232	​	​	2,578	​	​	​	(236)	​	​	(10.6)	​	​	​	​	(22.6)	​
Total loans	​	​	38,483	​	​	37,790	​	​	35,370	​	​	​	693	​	​	1.8	​	​	​	​	8.8	​
Total interest income	​	​	40,801	​	​	40,264	​	​	37,937	​	​	​	537	​	​	1.3	​	​	​	​	7.5	​
INTEREST EXPENSE	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest-bearing demand deposits	​	​	1,622	​	​	1,653	​	​	1,710	​	​	​	(31)	​	​	(1.9)	​	​	​	​	(5.1)	​
Savings deposits	​	​	2,593	​	​	2,909	​	​	3,144	​	​	​	(316)	​	​	(10.9)	​	​	​	​	(17.5)	​
Brokered deposits	​	​	1,787	​	​	1,896	​	​	2,295	​	​	​	(109)	​	​	(5.7)	​	​	​	​	(22.1)	​
Time deposits	​	​	6,415	​	​	6,200	​	​	4,699	​	​	​	215	​	​	3.5	​	​	​	​	36.5	​
Borrowed funds and subordinated debentures	​	​	1,133	​	​	1,116	​	​	2,248	​	​	​	17	​	​	1.5	​	​	​	​	(49.6)	​
Total interest expense	​	​	13,550	​	​	13,774	​	​	14,096	​	​	​	(224)	​	​	(1.6)	​	​	​	​	(3.9)	​
Net interest income	​	​	27,251	​	​	26,490	​	​	23,841	​	​	​	761	​	​	2.9	​	​	​	​	14.3	​
Provision for credit losses, loans	​	​	1,358	​	​	470	​	​	641	​	​	​	888	​	​	188.9	​	​	​	​	111.9	​
(Release) Provision for credit losses, off-balance sheet	​	​	(41)	​	​	(65)	​	​	2	​	​	​	24	​	​	*NM	​	​	​	​	*NM	​
Provision for credit losses, AFS securities	​	​	-	​	​	895	​	​	-	​	​	​	(895)	​	​	*NM	​	​	​	​	-	​
Net interest income after provision for credit losses	​	​	25,934	​	​	25,190	​	​	23,198	​	​	​	744	​	​	3.0	​	​	​	​	11.8	​
NONINTEREST INCOME	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Branch fee income	​	​	447	​	​	463	​	​	243	​	​	​	(16)	​	​	(3.5)	​	​	​	​	84.0	​
Service and loan fee income	​	​	864	​	​	488	​	​	457	​	​	​	376	​	​	77.0	​	​	​	​	89.1	​
Gain on sale of SBA loans held for sale, net	​	​	139	​	​	47	​	​	238	​	​	​	92	​	​	195.7	​	​	​	​	(41.6)	​
Gain on sale of mortgage loans, net	​	​	168	​	​	353	​	​	320	​	​	​	(185)	​	​	(52.4)	​	​	​	​	(47.5)	​
BOLI income	​	​	151	​	​	155	​	​	65	​	​	​	(4)	​	​	(2.6)	​	​	​	​	132.3	​
Net securities (losses) gains	​	​	(49)	​	​	14	​	​	54	​	​	​	(63)	​	​	*NM	​	​	​	​	*NM	​
Other income	​	​	381	​	​	396	​	​	341	​	​	​	(15)	​	​	(3.8)	​	​	​	​	11.7	​
Total noninterest income	​	​	2,101	​	​	1,916	​	​	1,718	​	​	​	185	​	​	9.7	​	​	​	​	22.3	​
NONINTEREST EXPENSE	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Compensation and benefits	​	​	7,902	​	​	7,997	​	​	7,357	​	​	​	(95)	​	​	(1.2)	​	​	​	​	7.4	​
Processing and communications	​	​	986	​	​	859	​	​	906	​	​	​	127	​	​	14.8	​	​	​	​	8.8	​
Occupancy	​	​	880	​	​	790	​	​	798	​	​	​	90	​	​	11.4	​	​	​	​	10.3	​
Furniture and equipment	​	​	746	​	​	834	​	​	684	​	​	​	(88)	​	​	(10.6)	​	​	​	​	9.1	​
Professional services	​	​	364	​	​	517	​	​	436	​	​	​	(153)	​	​	(29.6)	​	​	​	​	(16.5)	​
Advertising	​	​	391	​	​	348	​	​	400	​	​	​	43	​	​	12.4	​	​	​	​	(2.3)	​
Loan related expenses	​	​	46	​	​	179	​	​	384	​	​	​	(133)	​	​	(74.3)	​	​	​	​	(88.0)	​
Deposit insurance	​	​	241	​	​	195	​	​	339	​	​	​	46	​	​	23.6	​	​	​	​	(28.9)	​
Director fees	​	​	495	​	​	246	​	​	247	​	​	​	249	​	​	101.2	​	​	​	​	100.4	​
Other expenses	​	​	560	​	​	652	​	​	581	​	​	​	(92)	​	​	(14.1)	​	​	​	​	(3.6)	​
Total noninterest expense	​	​	12,611	​	​	12,617	​	​	12,132	​	​	​	(6)	​	​	-	​	​	​	​	3.9	​
Income before provision for income taxes	​	​	15,424	​	​	14,489	​	​	12,784	​	​	​	935	​	​	6.5	​	​	​	​	20.7	​
Provision for income taxes	​	​	3,826	​	​	2,984	​	​	3,198	​	​	​	842	​	​	28.2	​	​	​	​	19.6	​
Net income	​	$	11,598	​	$	11,505	​	$	9,586	​	​		93	​	​	0.8	%		​	​	21.0	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Effective tax rate	​	​	24.8	%	​	20.6	%	​	25.0	%	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net income per common share - Basic	​	$	1.15	​	$	1.15	​	$	0.95	​	​	​	​	​	​	​	​	​	​	​	​	​

All values are in US Dollars.

Net income per common share - Diluted	​	​	1.13	​	​	1.13	​	​	0.93	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Weighted average common shares outstanding - Basic	​	​	10,054	​	​	10,002	​	​	10,127	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Weighted average common shares outstanding - Diluted	​	​	10,247	​	​	10,204	​	​	10,276	​	​	​	​	​	​	​	​	​	​	​	​	​	​
*NM=Not meaningful	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​

UNITY BANCORP, INC.

QUARTER TO DATE NET INTEREST MARGIN

March 31, 2025

​

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	For the three months ended																	​
(Dollar amounts in thousands, interest amounts and	​	March 31, 2025								​	March 31, 2024								​
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	​	$	30,259	​	$	332	​	​	4.45	%	$	30,685	​	$	420	​	​	5.50	%
FHLB stock	​	​	7,459	​	​	182	​	​	9.90	​	​	11,000	​	​	280	​	​	10.23	​
Securities:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Taxable	​	​	142,847	​	​	1,786	​	​	5.00	​	​	134,874	​	​	1,849	​	​	5.48	​
Tax-exempt	​	​	1,596	​	​	18	​	​	4.59	​	​	1,658	​	​	18	​	​	4.47	​
Total securities (A)	​	​	144,443	​	​	1,804	​	​	5.00	​	​	136,532	​	​	1,867	​	​	5.47	​
Loans:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
SBA loans	​	​	48,286	​	​	929	​	​	7.70	​	​	58,120	​	​	1,333	​	​	9.17	​
SBA PPP loans	​	​	1,352	​	​	5	​	​	1.36	​	​	2,215	​	​	8	​	​	1.38	​
Commercial loans	​	​	1,446,998	​	​	24,260	​	​	6.71	​	​	1,281,600	​	​	20,830	​	​	6.43	​
Residential mortgage loans	​	​	639,742	​	​	9,947	​	​	6.22	​	​	625,451	​	​	9,219	​	​	5.90	​
Consumer loans	​	​	75,156	​	​	1,346	​	​	7.16	​	​	70,250	​	​	1,402	​	​	7.90	​
Residential construction loans	​	​	84,414	​	​	1,996	​	​	9.46	​	​	129,720	​	​	2,578	​	​	7.86	​
Total loans (B)	​	​	2,295,948	​	​	38,483	​	​	6.70	​	​	2,167,356	​	​	35,370	​	​	6.46	​
Total interest-earning assets	​	$	2,478,109	​	$	40,801	​	​	6.68	%	$	2,345,573	​	$	37,937	​	​	6.51	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Noninterest-earning assets:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Cash and due from banks	​	​	23,117	​	​	​	​	​	​	​	​	23,220	​	​	​	​	​	​	​
Allowance for credit losses	​	​	(27,455)	​	​	​	​	​	​	​	​	(26,059)	​	​	​	​	​	​	​
Other assets	​	​	91,553	​	​	​	​	​	​	​	​	94,001	​	​	​	​	​	​	​
Total noninterest-earning assets	​	​	87,215	​	​	​	​	​	​	​	​	91,162	​	​	​	​	​	​	​
Total assets	​	$	2,565,324	​	​	​	​	​	​	​	$	2,436,735	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
LIABILITIES AND SHAREHOLDERS' EQUITY	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest-bearing liabilities:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest-bearing demand deposits	​	$	341,991	​	$	1,622	​	​	1.92	%	$	324,829	​	$	1,710	​	​	2.12	%
Savings deposits	​	​	495,051	​	​	2,593	​	​	2.12	​	​	503,071	​	​	3,144	​	​	2.51	​
Brokered deposits	​	​	213,517	​	​	1,787	​	​	3.39	​	​	243,592	​	​	2,295	​	​	3.79	​
Time deposits	​	​	637,936	​	​	6,415	​	​	4.08	​	​	465,166	​	​	4,699	​	​	4.06	​
Total interest-bearing deposits	​	​	1,688,495	​	​	12,417	​	​	2.98	​	​	1,536,658	​	​	11,848	​	​	3.10	​
Borrowed funds and subordinated debentures	​	​	119,135	​	​	1,133	​	​	3.80	​	​	201,335	​	​	2,248	​	​	4.41	​
Total interest-bearing liabilities	​	$	1,807,630	​	$	13,550	​	​	3.04	%	$	1,737,993	​	$	14,096	​	​	3.26	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Noninterest-bearing liabilities:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Noninterest-bearing demand deposits	​	​	425,569	​	​	​	​	​	​	​	​	403,847	​	​	​	​	​	​	​
Other liabilities	​	​	29,833	​	​	​	​	​	​	​	​	28,747	​	​	​	​	​	​	​
Total noninterest-bearing liabilities	​	​	455,402	​	​	​	​	​	​	​	​	432,594	​	​	​	​	​	​	​
Total shareholders' equity	​	​	302,292	​	​	​	​	​	​	​	​	266,148	​	​	​	​	​	​	​
Total liabilities and shareholders' equity	​	$	2,565,324	​	​	​	​	​	​	​	$	2,436,735	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net interest spread	​	​	​	​	$	27,251	​	​	3.64	%	​	​	​	$	23,841	​	​	3.25	%
Tax-equivalent basis adjustment	​	​	​	​	​	-	​	​	​	​	​	​	​	​	-	​	​	​	​
Net interest income	​	​	​	​	$	27,251	​	​	​	​	​	​	​	$	23,841	​	​	​	​
Net interest margin	​	​	​	​	​	​	​	​	4.46	%	​	​	​	​	​	​	​	4.09	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​

​

(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

March 31, 2025

​

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	For the three months ended																	​
(Dollar amounts in thousands, interest amounts and	​	March 31, 2025								​	December 31, 2024								​
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	​	$	30,259	​	$	332	​	​	4.45	%	$	40,656	​	$	484	​	​	4.73	%
FHLB stock	​	​	7,459	​	​	182	​	​	9.90	​	​	7,303	​	​	164	​	​	8.96	​
Securities:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Taxable	​	​	142,847	​	​	1,786	​	​	5.00	​	​	142,096	​	​	1,809	​	​	5.09	​
Tax-exempt	​	​	1,596	​	​	18	​	​	4.59	​	​	1,588	​	​	17	​	​	4.47	​
Total securities (A)	​	​	144,443	​	​	1,804	​	​	5.00	​	​	143,684	​	​	1,826	​	​	5.09	​
Loans:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
SBA loans	​	​	48,286	​	​	929	​	​	7.70	​	​	51,761	​	​	1,096	​	​	8.47	​
SBA PPP loans	​	​	1,352	​	​	5	​	​	1.36	​	​	1,497	​	​	5	​	​	1.33	​
Commercial loans	​	​	1,446,998	​	​	24,260	​	​	6.71	​	​	1,379,993	​	​	23,500	​	​	6.66	​
Residential mortgage loans	​	​	639,742	​	​	9,947	​	​	6.22	​	​	622,623	​	​	9,578	​	​	6.15	​
Consumer loans	​	​	75,156	​	​	1,346	​	​	7.16	​	​	73,087	​	​	1,379	​	​	7.39	​
Residential construction loans	​	​	84,414	​	​	1,996	​	​	9.46	​	​	92,648	​	​	2,232	​	​	9.43	​
Total loans (B)	​	​	2,295,948	​	​	38,483	​	​	6.70	​	​	2,221,609	​	​	37,790	​	​	6.66	​
Total interest-earning assets	​	$	2,478,109	​	$	40,801	​	​	6.68	%	$	2,413,252	​	$	40,264	​	​	6.64	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Noninterest-earning assets:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Cash and due from banks	​	​	23,117	​	​	​	​	​	​	​	​	23,089	​	​	​	​	​	​	​
Allowance for credit losses	​	​	(27,455)	​	​	​	​	​	​	​	​	(27,292)	​	​	​	​	​	​	​
Other assets	​	​	91,553	​	​	​	​	​	​	​	​	92,772	​	​	​	​	​	​	​
Total noninterest-earning assets	​	​	87,215	​	​	​	​	​	​	​	​	88,569	​	​	​	​	​	​	​
Total assets	​	$	2,565,324	​	​	​	​	​	​	​	$	2,501,821	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
LIABILITIES AND SHAREHOLDERS' EQUITY	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest-bearing liabilities:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest-bearing demand deposits	​	$	341,991	​	$	1,622	​	​	1.92	%	$	325,151	​	$	1,653	​	​	2.02	%
Savings deposits	​	​	495,051	​	​	2,593	​	​	2.12	​	​	510,725	​	​	2,909	​	​	2.27	​
Brokered deposits	​	​	213,517	​	​	1,787	​	​	3.39	​	​	218,755	​	​	1,896	​	​	3.45	​
Time deposits	​	​	637,936	​	​	6,415	​	​	4.08	​	​	579,519	​	​	6,200	​	​	4.26	​
Total interest-bearing deposits	​	​	1,688,495	​	​	12,417	​	​	2.98	​	​	1,634,150	​	​	12,658	​	​	3.08	​
Borrowed funds and subordinated debentures	​	​	119,135	​	​	1,133	​	​	3.80	​	​	115,314	​	​	1,116	​	​	3.79	​
Total interest-bearing liabilities	​	$	1,807,630	​	$	13,550	​	​	3.04	%	$	1,749,464	​	$	13,774	​	​	3.13	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Noninterest-bearing liabilities:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Noninterest-bearing demand deposits	​	​	425,569	​	​	​	​	​	​	​	​	431,034	​	​	​	​	​	​	​
Other liabilities	​	​	29,833	​	​	​	​	​	​	​	​	31,032	​	​	​	​	​	​	​
Total noninterest-bearing liabilities	​	​	455,402	​	​	​	​	​	​	​	​	462,066	​	​	​	​	​	​	​
Total shareholders' equity	​	​	302,292	​	​	​	​	​	​	​	​	290,291	​	​	​	​	​	​	​
Total liabilities and shareholders' equity	​	$	2,565,324	​	​	​	​	​	​	​	$	2,501,821	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net interest spread	​	​	​	​	$	27,251	​	​	3.64	%	​	​	​	$	26,490	​	​	3.51	%
Tax-equivalent basis adjustment	​	​	​	​	​	-	​	​	​	​	​	​	​	​	-	​	​	​	​
Net interest income	​	​	​	​	$	27,251	​	​	​	​	​	​	​	$	26,490	​	​	​	​
Net interest margin	​	​	​	​	​	​	​	​	4.46	%	​	​	​	​	​	​	​	4.37	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​

​

(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

March 31, 2025

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Amounts in thousands, except percentages	​	March 31, 2025		​	December 31, 2024		​	September 30, 2024		​	June 30, 2024		​	March 31, 2024
ALLOWANCE FOR CREDIT LOSSES:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Balance, beginning of period	​	$	26,788	​	$	27,002	​	$	26,107	​	$	26,080	​	$	25,854
Provision for credit losses on loans	​	​	1,358	​	​	470	​	​	1,029	​	​	266	​	​	641
​	​	​	28,146	​	​	27,472	​	​	27,136	​	​	26,346	​	​	26,495
Less: Chargeoffs	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
SBA loans	​	​	350	​	​	300	​	​	70	​	​	-	​	​	-
Commercial loans	​	​	2	​	​	350	​	​	46	​	​	138	​	​	98
Residential mortgage loans	​	​	130	​	​	150	​	​	-	​	​	-	​	​	-
Consumer loans	​	​	50	​	​	93	​	​	68	​	​	130	​	​	70
Residential construction loans	​	​	-	​	​	-	​	​	-	​	​	-	​	​	277
Total chargeoffs	​	​	532	​	​	893	​	​	184	​	​	268	​	​	445
Add: Recoveries	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
SBA loans	​	​	5	​	​	26	​	​	7	​	​	6	​	​	8
Commercial loans	​	​	5	​	​	171	​	​	9	​	​	12	​	​	12
Residential mortgage loans	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Consumer loans	​	​	27	​	​	12	​	​	34	​	​	11	​	​	10
Residential construction loans	​	​	-	​	​	-	​	​	-	​	​	-	​	​	-
Total recoveries	​	​	37	​	​	209	​	​	50	​	​	29	​	​	30
Net (chargeoffs)/recoveries	​	​	(495)	​	​	(684)	​	​	(134)	​	​	(239)	​	​	(415)
Balance, end of period	​	$	27,651	​	$	26,788	​	$	27,002	​	$	26,107	​	$	26,080
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
ASSET QUALITY INFORMATION:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Nonaccrual loans:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
SBA loans	​	$	3,231	​	$	3,850	​	$	3,646	​	$	3,813	​	$	3,542
Commercial loans	​	​	4,821	​	​	2,974	​	​	3,674	​	​	2,321	​	​	2,415
Residential mortgage loans	​	​	8,622	​	​	5,711	​	​	5,053	​	​	5,336	​	​	7,440
Consumer loans	​	​	-	​	​	-	​	​	100	​	​	105	​	​	366
Residential construction loans	​	​	171	​	​	547	​	​	547	​	​	547	​	​	3,127
Total nonaccrual loans	​	​	16,845	​	​	13,082	​	​	13,020	​	​	12,122	​	​	16,890
Debt securities available for sale, net of valuation allowance	​	​	1,145	​	​	1,964	​	​	2,859	​	​	3,071	​	​	-
Nonaccrual assets	​	​	17,990	​	​	15,046	​	​	15,879	​	​	15,193	​	​	16,890
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Loans 90 days past due & still accruing	​	$	1,123	​	$	760	​	$	-	​	$	373	​	$	138
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Nonaccrual loans to total loans	​	​	0.72	%	​	0.58	%	​	0.59	%	​	0.56	%	​	0.78
Nonaccrual assets to total assets	​	​	0.65	​	​	0.57	​	​	0.60	​	​	0.58	​	​	0.66
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Allowance for credit losses to:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total loans at quarter end	​	​	1.18	%	​	1.18	%	​	1.22	%	​	1.20	%	​	1.20
Total nonperforming loans	​	​	164.15	​	​	204.77	​	​	207.39	​	​	215.37	​	​	154.41

UNITY BANCORP, INC.

QUARTERLY FINANCIAL DATA

March 31, 2025

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
(In thousands, except %'s, employee, office and per share amounts)	​	March 31, 2025		​	December 31, 2024		​	September 30, 2024		​	June 30, 2024		​	March 31, 2024		​
SUMMARY OF INCOME:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total interest income	​	$	40,801	​	$	40,264	​	$	39,550	​	$	37,987	​	$	37,937	​
Total interest expense	​	​	13,550	​	​	13,774	​	​	14,694	​	​	14,563	​	​	14,096	​
Net interest income	​	​	27,251	​	​	26,490	​	​	24,856	​	​	23,424	​	​	23,841	​
Provision for credit losses	​	​	1,317	​	​	1,300	​	​	1,080	​	​	926	​	​	643	​
Net interest income after provision for credit losses	​	​	25,934	​	​	25,190	​	​	23,776	​	​	22,498	​	​	23,198	​
Total noninterest income	​	​	2,101	​	​	1,916	​	​	2,803	​	​	2,032	​	​	1,718	​
Total noninterest expense	​	​	12,611	​	​	12,617	​	​	12,012	​	​	11,980	​	​	12,132	​
Income before provision for income taxes	​	​	15,424	​	​	14,489	​	​	14,567	​	​	12,550	​	​	12,784	​
Provision for income taxes	​	​	3,826	​	​	2,984	​	​	3,662	​	​	3,096	​	​	3,198	​
Net income	​	$	11,598	​	$	11,505	​	$	10,905	​	$	9,454	​	$	9,586	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net income per common share - Basic	​	$	1.15	​	$	1.15	​	$	1.09	​	$	0.94	​	$	0.95	​
Net income per common share - Diluted	​	​	1.13	​	​	1.13	​	​	1.07	​	​	0.92	​	​	0.94	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
COMMON SHARE DATA:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Market price per share	​	$	40.70	​	$	43.61	​	$	34.06	​	$	29.57	​	$	27.60	​
Dividends paid	​	​	0.14	​	​	0.13	​	​	0.13	​	​	0.13	​	​	0.13	​
Book value per common share	​	​	30.38	​	​	29.48	​	​	28.48	​	​	27.41	​	​	26.56	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Weighted average common shares outstanding - Basic	​	​	10,054	​	​	10,002	​	​	9,978	​	​	10,016	​	​	10,127	​
Weighted average common shares outstanding - Diluted	​	​	10,247	​	​	10,204	​	​	10,148	​	​	10,149	​	​	10,276	​
Issued common shares	​	​	11,666	​	​	11,616	​	​	11,570	​	​	11,555	​	​	11,555	​
Outstanding common shares	​	​	10,076	​	​	10,026	​	​	9,980	​	​	9,975	​	​	10,044	​
Treasury shares	​	​	1,590	​	​	1,590	​	​	1,590	​	​	1,580	​	​	1,511	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
PERFORMANCE RATIOS (Annualized):	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Return on average assets	​	​	1.83	%	​	1.83	%	​	1.76	%	​	1.56	%	​	1.58	%
Return on average equity	​	​	15.56	​	​	15.77	​	​	15.55	​	​	14.07	​	​	14.49	​
Efficiency ratio**	​	​	42.89	​	​	44.44	​	​	44.23	​	​	47.10	​	​	47.57	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
BALANCE SHEET DATA:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total assets	​	$	2,767,943	​	$	2,654,017	​	$	2,635,319	​	$	2,597,707	​	$	2,568,088	​
Total securities	​	​	142,092	​	​	145,028	​	​	143,712	​	​	145,187	​	​	138,702	​
Total loans	​	​	2,345,130	​	​	2,260,657	​	​	2,217,393	​	​	2,170,535	​	​	2,174,457	​
Allowance for credit losses	​	​	27,651	​	​	26,788	​	​	27,002	​	​	26,107	​	​	26,080	​
Total deposits	​	​	2,175,398	​	​	2,100,313	​	​	2,046,137	​	​	2,010,831	​	​	1,961,270	​
Total shareholders' equity	​	​	306,142	​	​	295,583	​	​	284,257	​	​	273,395	​	​	266,761	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
TAX EQUIVALENT YIELDS AND RATES:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest-earning assets	​	​	6.68	%	​	6.64	%	​	6.62	%	​	6.51	%	​	6.51	%
Interest-bearing liabilities	​	​	3.04	​	​	3.13	​	​	3.34	​	​	3.37	​	​	3.26	​
Net interest spread	​	​	3.64	​	​	3.51	​	​	3.28	​	​	3.14	​	​	3.25	​
Net interest margin	​	​	4.46	​	​	4.37	​	​	4.16	​	​	4.01	​	​	4.09	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
CREDIT QUALITY:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Nonaccrual assets	​	$	17,990	​	$	15,046	​	$	15,879	​	$	15,193	​	$	16,890	​
QTD annualized net (chargeoffs) to QTD average loans	​	​	(0.09)	%	​	(0.12)	%	​	(0.02)	%	​	(0.04)	%	​	(0.08)	%
Allowance for credit losses to total loans	​	​	1.18	​	​	1.18	​	​	1.22	​	​	1.20	​	​	1.20	​
Nonaccrual loans to total loans	​	​	0.72	​	​	0.58	​	​	0.59	​	​	0.56	​	​	0.78	​
Nonaccrual assets to total assets	​	​	0.65	​	​	0.57	​	​	0.60	​	​	0.58	​	​	0.66	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
UNITY BANCORP CAPITAL RATIOS:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total equity to total assets	​	​	11.06	%	​	11.14	%	​	10.79	%	​	10.52	%	​	10.39	%
Leverage ratio	​	​	12.32	​	​	12.22	​	​	11.94	​	​	11.67	​	​	11.39	​
Common Equity Tier 1 Capital Ratio	​	​	13.87	​	​	13.90	​	​	13.50	​	​	13.31	​	​	12.90	​
Risk-based Tier 1 Capital Ratio	​	​	14.33	​	​	14.37	​	​	13.98	​	​	13.80	​	​	13.38	​
Risk-based Total Capital Ratio	​	​	15.58	​	​	15.62	​	​	15.23	​	​	15.05	​	​	14.63	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Number of banking offices	​	​	21	​	​	21	​	​	21	​	​	21	​	​	21	​
Employee Full-Time Equivalent	​	​	227	​	​	224	​	​	222	​	​	217	​	​	217	​
** 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.																​
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​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​

​

​

​

UNITY BANCORP, INC.

LOAN PORTFOLIO COMPOSITION

March 31, 2025

​

​	​	​	​	​	​	​	​	​	​	​
In thousands, except percentages	​	March 31, 2025		​	%	​	December 31, 2024		​	%
Loans Held for Sale	​	$	14,000	​	0.6%	​	$	12,163	​	0.5%
​	​	​	​	​	​	​	​	​	​	​
SBA Loans	​	​	​	​	​	​	​	​	​	​
SBA loans held for investment	​	​	36,686	​	1.6%	​	​	36,859	​	1.6%
SBA PPP	​	​	1,307	​	0.1%	​	​	1,450	​	0.1%
Total SBA Loans	​	​	37,993	​	1.7%	​	​	38,309	​	1.7%
​	​	​	​	​	​	​	​	​	​	​
Commercial Loans	​	​	​	​	​	​	​	​	​	​
Commercial construction	​	​	129,829	​	5.5%	​	​	130,193	​	5.8%
SBA 504	​	​	52,734	​	2.2%	​	​	48,479	​	2.1%
Commercial & industrial	​	​	155,187	​	6.6%	​	​	147,186	​	6.5%
Commercial mortgage - owner occupied	​	​	606,611	​	26.0%	​	​	577,541	​	25.6%
Commercial mortgage - nonowner occupied	​	​	462,817	​	19.7%	​	​	428,600	​	19.0%
Other	​	​	79,676	​	3.4%	​	​	79,630	​	3.5%
Total Commercial Loans	​	​	1,486,854	​	63.4%	​	​	1,411,629	​	62.5%
​	​	​	​	​	​	​	​	​	​	​
Residential Mortgage Loans	​	​	654,250	​	27.9%	​	​	630,927	​	27.9%
​	​	​	​	​	​	​	​	​	​	​
Consumer Loans	​	​	​	​	​	​	​	​	​	​
Home equity	​	​	75,646	​	3.2%	​	​	73,223	​	3.2%
Consumer other	​	​	2,974	​	0.1%	​	​	3,488	​	0.2%
Total Consumer Loans	​	​	78,620	​	3.3%	​	​	76,711	​	3.4%
​	​	​	​	​	​	​	​	​	​	​
Residential Construction Loans	​	​	73,413	​	3.1%	​	​	90,918	​	4.0%
​	​	​	​	​	​	​	​	​	​	​
Total Gross Loans	​	$	2,345,130	​	100.0%	​	$	2,260,657	​	100.0%

​