8-K - UNTY - Equibles

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

January 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 Operation and Financial Condition

The Registrant issued a press release on January 13, 2026 announcing results for the three months and twelve months ended December 31, 2025, the full text of which is incorporated by reference to this Item.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit 99.1unty-20260113xex99d1.htm	Press release issued by the Registrant on January 13, 2026.

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.

October 13, 2023
	UNITY BANCORP, INC.
	(Registrant)

Date: January 13, 2026
	By:	/s/ James Davies
		James Davies
		First Senior Vice President & Chief Financial Officer

Exhibit 99.1

During the quarter, we also recognized a pre-tax unrealized gain of $1.5 million, related to the continued resolution of Patriot National Bancorp, Inc. Excluding this item, on a core basis, for the quarter, Unity earned $14.4 million, or $1.41 per diluted share, representing a 2.04% ROA and 16.77% ROE.

As we look ahead to 2026, Unity remains focused on delivering exceptional customer experiences, deepening relationships, and attracting new customers to the franchise. These priorities position us well to sustain our momentum and continue creating long-term value for our shareholders.”

Clinton, NJ -- Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $15.5 million, or $1.52 per diluted share, for the quarter ended December 31, 2025, compared to net income of $14.4 million, or $1.41 per diluted share for the quarter ended September 30, 2025. For the twelve months ended December 31, 2025, Unity Bancorp reported net income of $58.0 million, or $5.67 per diluted share, compared to net income of $41.5 million, or $4.06 per diluted share, for the twelve months ended December 31, 2024.

Fourth Quarter Earnings Highlights

●	Net interest income, the primary driver of earnings, was $31.4 million for the quarter ended December 31, 2025, an increase of $1.5 million, as compared to $29.9 million for the quarter ended September 30, 2025. Net interest margin (“NIM”) increased 6 basis points to 4.60% for the quarter ended December 31, 2025, compared to the quarter ended September 30, 2025. The increase was primarily due to the declining rate on interest bearing liabilities.
●	The provision for credit losses on loans was $2.2 million for the quarter ended December 31, 2025, compared to $1.4 million for the quarter ended September 30, 2025. The provision in the current quarter was primarily driven by loan growth, with additional increases in qualitative adjustments due to increased nonaccrual assets.
---	---
●	Noninterest income was $3.9 million for the quarter ended December 31, 2025, compared to $3.0 million for the quarter ended September 30, 2025. The $0.9 million increase was primarily due to the substantial unrealized gain associated with Patriot. This was partially offset by lower gain on sale of mortgages.
---	---
o	During the quarter ended September 30, 2025, Unity converted its debt security issued by Patriot National Bancorp, Inc. into common stock, resulting in ownership of approximately 2.673 million restricted Patriot shares valued at $0.75 per share. These shares remained restricted as of December 31, 2025, pending Patriot’s registration of the shares or the availability of an applicable exemption and their eligibility for trading on a national securities exchange. During the quarter ended December 31, 2025, Unity marked the security to $1.30 per share, resulting in a $1.5 million unrealized gain on the Patriot position.
---	---
●	Noninterest expense was $13.3 million for the quarter ended December 31, 2025, compared to $13.4 million for the quarter ended September 30, 2025. The decrease was primarily due to lower compensation and benefits expenses, partially offset by increases in loan related expenses, professional services and other expenses. Compensation and benefits expenses declined quarter over quarter due to $0.7 million of one-time accrual reversals.
---	---
●	The effective tax rate was 21.4% for the quarter ended December 31, 2025, compared to 23.7% for the quarter ended September 30, 2025. During the fourth quarter of 2025, Unity purchased $8.0 million of federal tax credits for $7.5 million, resulting in $0.5 million of tax savings. The Company intends to evaluate other tax credit opportunities on an ongoing basis, subject to market availability and regulatory considerations.
---	---

Balance Sheet Highlights

●	Total gross loans increased $284.1 million, or 12.6%, from December 31, 2024, primarily due to increases in the commercial, residential mortgage, and commercial construction loan categories. Furthermore, gross loans increased $76.2 million, or 3.1% from September 30, 2025.
●	As of December 31, 2025, the allowance for credit losses as a percentage of gross loans was 1.27%.
---	---
●	Total deposits increased $223.7 million, or 10.7%, from December 31, 2024. Further, total deposits increased $56.6 million, or 2.5% from September 30, 2025. As of December 31, 2025, uninsured or uncollateralized deposits represented 21.7% of total deposits. The Company’s deposit composition as of December 31, 2025, consisted of 20.0% in noninterest bearing demand deposits, 17.5% in interest-bearing demand deposits, 24.4% in savings deposits and 38.1% in time deposits.
---	---
●	As of December 31, 2025, investments comprised 4.2% of total assets. Available for sale debt securities (“AFS”) were $70.9 million or 2.4% of total assets. Held to maturity (“HTM”) debt securities were $36.6 million or 1.2% of total assets. As of December 31, 2025, pre-tax net unrealized losses on AFS and HTM were $1.6 million and $6.2 million, respectively. Equity securities were $16.6 million or 0.6% of total assets as of December 31, 2025.
---	---
●	Borrowed funds increased $35.3 million from December 31, 2024. Borrowed funds were entirely comprised of borrowings from the FHLB.
---	---
●	Shareholders’ equity was $345.6 million as of December 31, 2025, compared to $295.6 million as of December 31, 2024. The $50.0 million increase was primarily driven by 2025 earnings, partially offset by dividend payments and share repurchase activity. During the quarter ended December 31, 2025, Unity Bancorp, Inc. repurchased 66,296 shares at a weighted average price of $46.55 per share. For the year ended December 31, 2025, Unity Bancorp, Inc. repurchased 116,296 shares at a weighted average price of $43.21 per share. During the quarter ended December 31, 2025, Unity Bancorp, Inc. retired approximately 1.6 million shares of treasury stock, valued at $35.5 million. The retired shares were returned to the pool of authorized but not issued shares.
---	---
●	Book value per common share was $34.63 as of December 31, 2025, compared to $29.48 as of December 31, 2024. This increase primarily reflects retained earnings offset partially by dividends and share repurchases.
---	---
●	Below is a summary of Unity Bancorp’s regulatory capital ratios:
---	---
o	The Leverage Ratio increased 50 basis points to 12.72% at December 31, 2025, compared to 12.22% at December 31, 2024.
---	---
o	The Common Equity Tier 1 Capital Ratio increased 55 basis points to 14.45% at December 31, 2025, compared to 13.90% at December 31, 2024.
---	---
o	The Tier 1 Capital Ratio increased 50 basis points to 14.87% at December 31, 2025, compared to 14.37% at December 31, 2024.
---	---
o	The Total Capital Ratio increased 50 basis points, to 16.12% at December 31, 2025, compared to 15.62% at December 31, 2024.
---	---
●	At December 31, 2025, the Company held $216.5 million of cash and cash equivalents. The Company also maintained approximately $499.2 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 142.1% of uninsured or uncollateralized deposits.
---	---
●	As of December 31, 2025, nonaccrual assets (including OREO) were $31.3 million, compared to $20.5 million as of September 30, 2025. The ratio of nonaccrual loans to total loans was 1.17% as of December 31, 2025. The ratio of nonaccrual assets to total assets was 1.06% as of December 31, 2025. The increase primarily reflects one $15.5 million well-secured commercial real estate relationship that migrated to nonaccrual status during the quarter.
---	---

Other Highlights

❖

Effective as of January 1, 2026, George Boyan was promoted to President. Mr. Boyan previously served as Executive Vice President and Chief Financial Officer, where he played a pivotal role in the Company’s financial strategy and growth. In addition to his new role as President, Mr. Boyan was appointed to the Boards of Directors of both Unity Bancorp, Inc. and Unity Bank, also effective January 1, 2026. James Davies will succeed Mr. Boyan as Chief Financial Officer.

❖	In December 2025, Unity Bancorp, Inc. was named to Piper Sandler’s Sm-All Stars Class of 2025, a prestigious designation recognizing the top-performing small-cap banks and thrifts in the nation.

Unity Bancorp, Inc. is a financial services organization headquartered in Clinton, New Jersey, with approximately $3.0 billion in assets and $2.3 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 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, the impact of any health crisis or national disasters on the Bank, 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.

UNITY BANCORP, INC.

SUMMARY FINANCIAL HIGHLIGHTS


												December 31, 2025 vs.
												September 30, 2025		December 31, 2024
(In thousands, except percentages and per share amounts)		December 31, 2025			September 30, 2025			December 31, 2024				%		%
BALANCE SHEET DATA
Total assets		$	2,966,652		$	2,876,365		$	2,654,017			3.1	%	11.8	%
Total deposits			2,324,061			2,267,484			2,100,313			2.5		10.7
Total gross loans			2,544,713			2,468,527			2,260,657			3.1		12.6
Total securities			124,015			131,252			145,028			(5.5)		(14.5)
Total shareholders' equity			345,631			334,023			295,583			3.5		16.9
Allowance for credit losses			32,342			30,245			26,788			6.9		20.7

FINANCIAL DATA - QUARTER TO DATE
Income before provision for income taxes		$	19,694		$	18,866		$	14,489			4.4		35.9
Provision for income taxes			4,222			4,476			2,984			(5.7)		41.5
Net income		$	15,472		$	14,390		$	11,505			7.5		34.5

Net income per common share - Basic		$	1.55		$	1.43		$	1.15			8.4		34.8
Net income per common share - Diluted			1.52			1.41			1.13			7.8		34.5

PERFORMANCE RATIOS - QUARTER TO DATE (ANNUALIZED)
Return on average assets			2.20	%		2.11	%		1.83	%
Return on average equity			18.08			17.41			15.77
Efficiency ratio**			39.52			41.47			44.44
Cost of funds			2.38			2.46			2.51
Net interest margin			4.60			4.54			4.37
Noninterest expense to average assets			1.89			1.97			2.01

FINANCIAL DATA - YEAR TO DATE
Income before provision for income taxes		$	75,512					$	54,390					38.8
Provision for income taxes			17,561						12,940					35.7
Net income		$	57,951					$	41,450					39.8

Net income per common share - Basic		$	5.78					$	4.13					40.0
Net income per common share - Diluted			5.67						4.06					39.7

PERFORMANCE RATIOS - YEAR TO DATE
Return on average assets			2.17	%					1.68	%
Return on average equity			18.07						14.99
Efficiency ratio**			41.48						45.77
Cost of funds			2.44						2.65
Net interest margin			4.52						4.16
Noninterest expense to average assets			1.96						1.98

SHARE INFORMATION
Market price per share		$	51.72		$	48.87		$	43.61			5.8		18.6
Dividends paid (QTD)			0.15			0.15			0.13			-		15.4
Book value per common share			34.63			33.26			29.48			4.1		17.5
Average diluted shares outstanding (QTD)			10,195			10,233			10,204			(0.4)		(0.1)

UNITY BANCORP CAPITAL RATIOS
Total equity to total assets			11.65	%		11.61	%		11.14	%		0.3		4.6
Leverage ratio			12.72			12.71			12.22			0.1		4.1
Common Equity Tier 1 Capital Ratio			14.45			14.45			13.90			-		4.0
Risk-based Tier 1 Capital Ratio			14.87			14.88			14.37			(0.1)		3.5
Risk-based Total Capital Ratio			16.12			16.13			15.62			(0.1)		3.2

CREDIT QUALITY AND RATIOS
Nonaccrual assets		$	31,308		$	20,514		$	15,046			52.6		108.1
QTD annualized net (chargeoffs) to QTD average loans			(0.02)	%		(0.03)	%		(0.12)	%
Allowance for credit losses to total loans			1.27			1.23			1.18
Nonaccrual loans to total loans			1.17			0.83			0.58
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Nonaccrual assets to total assets			1.06			0.71			0.57
** 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.

CONSOLIDATED BALANCE SHEETS


							December 31, 2025 vs.
							September 30, 2025		December 31, 2024
(In thousands, except percentages)	December 31, 2025		September 30, 2025		December 31, 2024		%		%

ASSETS
Cash and due from banks	$	19,841	$	20,860	$	20,206	(4.9)	%	(1.8)	%
Interest-bearing deposits		196,678		182,626		160,232	7.7		22.7
Cash and cash equivalents		216,519		203,486		180,438	6.4		20.0
Securities:
Debt securities available for sale, at market value, net of valuation allowance		70,870		82,063		93,884	(13.6)		(24.5)
Debt securities held to maturity, at book value		36,576		36,505		41,294	0.2		(11.4)
Equity securities, at market value		16,569		12,684		9,850	30.6		68.2
Total securities		124,015		131,252		145,028	(5.5)		(14.5)
Loans:
Loans held for sale		9,490		15,421		12,163	(38.5)		(22.0)
SBA loans held for investment		34,259		37,537		38,309	(8.7)		(10.6)
Commercial loans		1,518,032		1,465,497		1,281,436	3.6		18.5
Commercial construction loans		147,215		117,111		130,193	25.7		13.1
Residential mortgage loans		677,221		676,862		630,927	0.1		7.3
Consumer loans		85,219		82,857		76,711	2.9		11.1
Residential construction loans		73,277		73,242		90,918	-		(19.4)
Total loans		2,544,713		2,468,527		2,260,657	3.1		12.6
Allowance for credit losses		(32,342)		(30,245)		(26,788)	6.9		20.7
Net loans		2,512,371		2,438,282		2,233,869	3.0		12.5
Premises and equipment, net		18,022		18,439		18,778	(2.3)		(4.0)
Bank owned life insurance ("BOLI")		26,547		26,319		25,773	0.9		3.0
Deferred tax assets		14,640		15,022		14,106	(2.5)		3.8
Federal Home Loan Bank ("FHLB") stock		14,314		13,218		12,507	8.3		14.4
Accrued interest receivable		12,896		13,288		12,691	(3.0)		1.6
Goodwill		1,516		1,516		1,516	-		-
Other real estate owned ("OREO")		1,472		-		-	*NM		*NM
Prepaid expenses and other assets		24,340		15,543		9,311	56.6		161.4
Total assets	$	2,966,652	$	2,876,365	$	2,654,017	3.1	%	11.8	%

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing demand	$	465,596	$	447,510	$	440,803	4.0	%	5.6	%
Interest-bearing demand		369,131		362,449		321,780	1.8		14.7
Savings		535,044		535,560		491,175	(0.1)		8.9
Brokered deposits		274,203		235,122		217,931	16.6		25.8
Time deposits		680,087		686,843		628,624	(1.0)		8.2
Total deposits		2,324,061		2,267,484		2,100,313	2.5		10.7
Borrowed funds		255,774		231,707		220,504	10.4		16.0
Subordinated debentures		10,310		10,310		10,310	-		-
Accrued interest payable		2,138		1,790		1,702	19.4		25.6
Accrued expenses and other liabilities		28,738		31,051		25,605	(7.4)		12.2
Total liabilities		2,621,021		2,542,342		2,358,434	3.1		11.1
Shareholders' equity:
Common stock		105,892		105,320		103,936	0.5		1.9
Retained earnings		243,935		265,491		227,331	*NM		7.3
Treasury stock, at cost		(3,101)		(35,515)		(33,577)	*NM		(90.8)
Accumulated other comprehensive loss		(1,095)		(1,273)		(2,107)	(14.0)		(48.0)
Total shareholders' equity		345,631		334,023		295,583	3.5		16.9
Total liabilities and shareholders' equity	$	2,966,652	$	2,876,365	$	2,654,017	3.1	%	11.8	%

Shares issued		10,048		11,681		11,616
Shares outstanding		9,982		10,041		10,026
Treasury shares		66		1,640		1,590

*NM=Not meaningful

UNITY BANCORP, INC.

QTD CONSOLIDATED STATEMENTS OF INCOME


										December 31, 2025 vs.
	For the three months ended									September 30, 2025				December 31, 2024
(In thousands, except percentages and per share amounts)	December 31, 2025			September 30, 2025			December 31, 2024				%				%
INTEREST INCOME
Interest-bearing deposits	$	674		$	472		$	484				42.8	%			39.3	%
FHLB stock		133			121			164				9.9				(18.9)
Securities:
Taxable		1,561			1,735			1,809				(10.0)				(13.7)
Tax-exempt		18			18			17				-				5.9
Total securities		1,579			1,753			1,826				(9.9)				(13.5)
Loans:
SBA loans		1,037			964			1,101				7.6				(5.8)
Commercial loans		25,626			24,853			20,310				3.1				26.2
Commercial construction loans		2,666			2,344			3,190				13.7				(16.4)
Residential mortgage loans		10,838			10,749			9,578				0.8				13.2
Consumer loans		1,524			1,469			1,379				3.7				10.5
Residential construction loans		1,791			1,636			2,232				9.5				(19.8)
Total loans		43,482			42,015			37,790				3.5				15.1
Total interest income		45,868			44,361			40,264				3.4				13.9
INTEREST EXPENSE
Interest-bearing demand deposits		2,009			1,998			1,653				0.6				21.5
Savings deposits		3,165			3,177			2,909				(0.4)				8.8
Brokered deposits		2,033			2,003			1,896				1.5				7.2
Time deposits		6,350			6,247			6,200				1.6				2.4
Borrowed funds and subordinated debentures		942			1,080			1,116				(12.8)				(15.6)
Total interest expense		14,499			14,505			13,774				-				5.3
Net interest income		31,369			29,856			26,490				5.1				18.4
Provision for credit losses, loans		2,208			1,409			470				56.7				369.8
Provision (release) for credit losses, off-balance sheet		50			(80)			(65)				*NM				*NM
(Release) provision of credit losses, securities		-			(787)			895				*NM				*NM
Net interest income after provision for credit losses		29,111			29,314			25,190				(0.7)				15.6
NONINTEREST INCOME
Branch fee income		475			450			463				5.6				2.6
Service and loan fee income		705			607			488				16.1				44.5
Gain on sale of SBA loans held for sale, net		165			238			47				(30.7)				251.1
Gain on sale of mortgage loans, net		343			582			353				(41.1)				(2.8)
BOLI income		228			211			155				8.1				47.1
Net securities gains		1,570			475			14				230.5				*NM
Other income		412			404			396				2.0				4.0
Total noninterest income		3,898			2,967			1,916				31.4				103.4
NONINTEREST EXPENSE
Compensation and benefits		7,693			8,430			7,997				(8.7)				(3.8)
Processing and communications		1,077			1,150			859				(6.3)				25.4
Occupancy		880			838			790				5.0				11.4
Furniture and equipment		854			838			834				1.9				2.4
Professional services		640			405			517				58.0				23.8
Advertising		379			456			348				(16.9)				8.9
Loan related expenses		426			151			179				182.1				138.0
Deposit insurance		300			320			195				(6.3)				53.8
Director fees		271			263			246				3.0				10.2
Other expenses		795			564			652				41.0				21.9
Total noninterest expense		13,315			13,415			12,617				(0.7)				5.5
Income before provision for income taxes		19,694			18,866			14,489				4.4				35.9
Provision for income taxes		4,222			4,476			2,984				(5.7)				41.5
Net income	$	15,472		$	14,390		$	11,505				7.5	%			34.5	%

Effective tax rate		21.4	%		23.7	%		20.6	%

Net income per common share - Basic	$	1.55		$	1.43		$	1.15
Net income per common share - Diluted		1.52			1.41			1.13

Weighted average common shares outstanding - Basic		10,008			10,036			10,002
Weighted average common shares outstanding - Diluted		10,195			10,233			10,204
*NM=Not meaningful

All values are in US Dollars.

UNITY BANCORP, INC.

YTD CONSOLIDATED STATEMENTS OF INCOME



	For the years ended December 31,						Current YTD vs. Prior YTD
(In thousands, except percentages and per share amounts)	2025			2024				%
INTEREST INCOME
Interest-bearing deposits	$	1,964		$	2,033				(3.4)	%
FHLB stock		565			789				(28.4)
Securities:
Taxable		6,818			7,312				(6.8)
Tax-exempt		71			70				1.4
Total securities		6,889			7,382				(6.7)
Loans:
SBA loans		3,790			4,887				(22.4)
Commercial loans		95,144			75,699				25.7
Commercial construction loans		10,340			12,074				(14.4)
Residential mortgage loans		41,925			37,770				11.0
Consumer loans		5,830			5,607				4.0
Residential construction loans		7,181			9,497				(24.4)
Total loans		164,210			145,534				12.8
Total interest income		173,628			155,738				11.5
INTEREST EXPENSE
Interest-bearing demand deposits		7,528			7,176				4.9
Savings deposits		11,652			13,006				(10.4)
Brokered deposits		7,608			8,412				(9.6)
Time deposits		25,571			22,918				11.6
Borrowed funds and subordinated debentures		4,236			5,615				(24.6)
Total interest expense		56,595			57,127				(0.9)
Net interest income		117,033			98,611				18.7
Provision for credit losses, loans		6,699			2,407				178.3
Provision for credit losses, off-balance sheet		66			1				*NM
(Release) Provision for credit losses, securities		(2,824)			1,541				*NM
Net interest income after provision for credit losses		113,092			94,662				19.5
NONINTEREST INCOME
Branch fee income		1,836			1,391				32.0
Service and loan fee income		2,712			2,165				25.3
Gain on sale of SBA loans held for sale, net		705			660				6.8
Gain on sale of mortgage loans, net		1,527			1,488				2.6
BOLI income		774			544				42.3
Net securities gains		5,596			586				*NM
Other income		1,629			1,635				(0.4)
Total noninterest income		14,779			8,469				74.5
NONINTEREST EXPENSE
Compensation and benefits		32,186			29,749				8.2
Processing and communications		4,193			3,473				20.7
Occupancy		3,407			3,184				7.0
Furniture and equipment		3,224			3,140				2.7
Professional services		1,758			1,683				4.5
Advertising		1,682			1,611				4.4
Loan related expenses		888			1,138				(22.0)
Deposit insurance		1,174			1,100				6.7
Director fees		1,293			956				35.3
Other expenses		2,554			2,707				(5.7)
Total noninterest expense		52,359			48,741				7.4
Income before provision for income taxes		75,512			54,390				38.8
Provision for income taxes		17,561			12,940				35.7
Net income	$	57,951		$	41,450				39.8	%

Effective tax rate		23.3	%		23.8	%

Net income per common share - Basic	$	5.78		$	4.13
Net income per common share - Diluted		5.67			4.06

Weighted average common shares outstanding - Basic		10,033			10,031
Weighted average common shares outstanding - Diluted		10,223			10,202
*NM=Not meaningful

All values are in US Dollars.

UNITY BANCORP, INC.

QUARTER TO DATE NET INTEREST MARGIN


	For the three months ended
(Dollar amounts in thousands, interest amounts and	December 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	$	66,840	$	674		4.00	%	$	40,656	$	484		4.73	%
FHLB stock		6,859		133		7.67			7,303		164		8.96
Securities:
Taxable		128,384		1,561		4.86			142,096		1,809		5.09
Tax-exempt		1,474		21		5.67			1,588		17		4.47
Total securities (A)		129,858		1,582		4.87			143,684		1,826		5.09
Loans:
SBA loans		45,686		1,037		9.08			53,258		1,101		8.27
Commercial loans		1,487,472		25,626		6.74			1,233,532		20,310		6.44
Commercial construction loans		131,268		2,666		7.95			146,461		3,190		8.52
Residential mortgage loans		680,679		10,838		6.37			622,623		9,578		6.15
Consumer loans		84,318		1,524		7.07			73,087		1,379		7.39
Residential construction loans		74,915		1,791		9.35			92,648		2,232		9.43
Total loans (B)		2,504,338		43,482		6.79			2,221,609		37,790		6.66
Total interest-earning assets	$	2,707,895	$	45,871		6.72	%	$	2,413,252	$	40,264		6.64	%

Noninterest-earning assets:
Cash and due from banks		23,135							23,089
Allowance for credit losses		(30,791)							(27,292)
Other assets		91,977							92,772
Total noninterest-earning assets		84,321							88,569
Total assets	$	2,792,216						$	2,501,821

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits	$	391,005	$	2,009		2.04	%	$	325,151	$	1,653		2.02	%
Savings deposits		546,025		3,165		2.30			510,725		2,909		2.27
Brokered deposits		231,956		2,033		3.48			218,755		1,896		3.45
Time deposits		687,058		6,350		3.67			579,519		6,200		4.26
Total interest-bearing deposits		1,856,044		13,557		2.90			1,634,150		12,658		3.08
Borrowed funds and subordinated debentures		100,689		942		3.66			115,314		1,116		3.79
Total interest-bearing liabilities	$	1,956,733	$	14,499		2.94	%	$	1,749,464	$	13,774		3.13	%

Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		462,977							431,034
Other liabilities		33,026							31,032
Total noninterest-bearing liabilities		496,003							462,066
Total shareholders' equity		339,480							290,291
Total liabilities and shareholders' equity	$	2,792,216						$	2,501,821

Net interest spread			$	31,372		3.78	%			$	26,490		3.51	%
Tax-equivalent basis adjustment				(3)							-
Net interest income			$	31,369						$	26,490
Net interest margin						4.60	%						4.37	%

(A)	Yields related to securities exempt from federal and state income taxes are stated on a fully tax-equivalent basis. They are reduced by the nondeductible portion of interest expense, assuming a federal tax rate of 21 percent and applicable state rates.
(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	December 31, 2025							September 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	$	66,840	$	674		4.00	%	$	42,014	$	472		4.46	%
FHLB stock		6,859		133		7.67			7,588		121		6.31
Securities:
Taxable		128,384		1,561		4.86			135,170		1,735		5.14
Tax-exempt		1,474		21		5.67			1,460		24		6.43
Total securities (A)		129,858		1,582		4.87			136,630		1,759		5.15
Loans:
SBA loans		45,686		1,037		9.08			46,001		964		8.38
Commercial loans		1,487,472		25,626		6.74			1,441,447		24,853		6.75
Commercial construction loans		131,268		2,666		7.95			111,015		2,344		8.26
Residential mortgage loans		680,679		10,838		6.37			674,260		10,749		6.38
Consumer loans		84,318		1,524		7.07			82,851		1,469		6.94
Residential construction loans		74,915		1,791		9.35			68,056		1,636		9.41
Total loans (B)		2,504,338		43,482		6.79			2,423,630		42,015		6.78
Total interest-earning assets	$	2,707,895	$	45,871		6.72	%	$	2,609,862	$	44,367		6.74	%

Noninterest-earning assets:
Cash and due from banks		23,135							23,335
Allowance for credit losses		(30,791)							(29,641)
Other assets		91,977							98,914
Total noninterest-earning assets		84,321							92,608
Total assets	$	2,792,216						$	2,702,470

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits	$	391,005	$	2,009		2.04	%	$	363,353	$	1,998		2.18	%
Savings deposits		546,025		3,165		2.30			510,616		3,177		2.47
Brokered deposits		231,956		2,033		3.48			230,728		2,003		3.44
Time deposits		687,058		6,350		3.67			665,691		6,247		3.72
Total interest-bearing deposits		1,856,044		13,557		2.90			1,770,388		13,425		3.01
Borrowed funds and subordinated debentures		100,689		942		3.66			118,350		1,080		3.57
Total interest-bearing liabilities	$	1,956,733	$	14,499		2.94	%	$	1,888,738	$	14,505		3.05	%

Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		462,977							453,140
Other liabilities		33,026							32,741
Total noninterest-bearing liabilities		496,003							485,881
Total shareholders' equity		339,480							327,851
Total liabilities and shareholders' equity	$	2,792,216						$	2,702,470

Net interest spread			$	31,372		3.78	%			$	29,862		3.69	%
Tax-equivalent basis adjustment				(3)							(6)
Net interest income			$	31,369						$	29,856
Net interest margin						4.60	%						4.54	%

(A)	Yields related to securities exempt from federal and state income taxes are stated on a fully tax-equivalent basis. They are reduced by the nondeductible portion of interest expense, assuming a federal tax rate of 21 percent and applicable state rates.
(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.

YTD NET INTEREST MARGIN


	For the years ended
(Dollar amounts in thousands, interest amounts and	December 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	$	45,865	$	1,964		4.28	%	$	38,491	$	2,033		5.28	%
FHLB stock		7,382		565		7.66			8,440		789		9.34
Securities:
Taxable		136,129		6,818		5.01			139,800		7,312		5.23
Tax-exempt		1,499		83		5.55			1,599		72		4.49
Total securities (A)		137,628		6,901		5.01			141,399		7,384		5.22
Loans:
SBA loans		47,478		3,790		7.87			56,307		4,887		8.56
Commercial loans		1,405,106		95,144		6.68			1,186,277		75,699		6.28
Commercial construction loans		124,234		10,340		8.21			134,806		12,074		8.81
Residential mortgage loans		663,372		41,925		6.32			625,365		37,770		6.04
Consumer loans		81,177		5,830		7.08			71,010		5,607		7.77
Residential construction loans		74,933		7,181		9.45			108,558		9,497		8.61
Total loans (B)		2,396,300		164,210		6.76			2,182,323		145,534		6.56
Total interest-earning assets	$	2,587,175	$	173,640		6.71	%	$	2,370,653	$	155,740		6.57	%

Noninterest-earning assets:
Cash and due from banks		22,798							23,396
Allowance for credit losses		(28,999)							(26,492)
Other assets		94,422							92,687
Total noninterest-earning assets		88,221							89,591
Total assets	$	2,675,396						$	2,460,244

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits	$	362,811	$	7,528		2.07	%	$	326,943	$	7,176		2.19	%
Savings deposits		509,892		11,652		2.29			512,405		13,006		2.54
Brokered deposits		220,910		7,608		3.44			227,070		8,412		3.70
Time deposits		668,405		25,571		3.83			535,297		22,918		4.28
Total interest-bearing deposits		1,762,018		52,359		2.97			1,601,715		51,512		3.22
Borrowed funds and subordinated debentures		114,047		4,236		3.66			141,489		5,615		3.90
Total interest-bearing liabilities	$	1,876,065	$	56,595		3.02	%	$	1,743,204	$	57,127		3.28	%

Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		446,081							411,148
Other liabilities		32,524							29,421
Total noninterest-bearing liabilities		478,605							440,569
Total shareholders' equity		320,726							276,471
Total liabilities and shareholders' equity	$	2,675,396						$	2,460,244

Net interest spread			$	117,045		3.69	%			$	98,613		3.29	%
Tax-equivalent basis adjustment				(12)							(2)
Net interest income			$	117,033						$	98,611
Net interest margin						4.52	%						4.16	%

(A) Yields related to securities exempt from federal and state income taxes are stated on a fully tax-equivalent basis. They are reduced by the nondeductible portion of interest expense, assuming a federal tax rate of 21 percent and applicable state rates.

(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 ASSET QUALITY SCHEDULES


Amounts in thousands, except percentages	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
ALLOWANCE FOR CREDIT LOSSES:
Balance, beginning of period	$	30,245		$	29,012		$	27,651		$	26,788		$	27,002
Provision for credit losses on loans		2,208			1,409			1,725			1,358			470
		32,453			30,421			29,376			28,146			27,472
Less: Chargeoffs
SBA loans		265			211			105			350			300
Commercial loans		-			-			100			2			350
Residential mortgage loans		46			85			282			130			150
Consumer loans		11			30			21			50			93
Residential construction loans		-			-			-			-			-
Total chargeoffs		322			326			508			532			893
Add: Recoveries
SBA loans		4			50			2			5			26
Commercial loans		196			92			102			5			171
Residential mortgage loans		-			-			-			-			-
Consumer loans		11			8			40			27			12
Residential construction loans		-			-			-			-			-
Total recoveries		211			150			144			37			209
Net chargeoffs		(111)			(176)			(364)			(495)			(684)
Balance, end of period	$	32,342		$	30,245		$	29,012		$	27,651		$	26,788

ASSET QUALITY INFORMATION:

Nonaccrual loans:
SBA loans	$	1,751		$	4,225		$	4,177		$	3,231		$	3,850
Commercial loans		18,473			4,006			3,512			4,821			2,974
Residential mortgage loans		8,173			11,174			7,980			8,622			5,711
Consumer loans		1,268			938			-			-			-
Residential construction loans		171			171			171			171			547
Total nonaccrual loans		29,836			20,514			15,840			16,845			13,082
Debt securities available for sale, net of valuation allowance		-			-			-			1,145			1,964
OREO		1,472			-			-			-			-
Nonaccrual assets		31,308			20,514			15,840			17,990			15,046

Loans 90 days past due & still accruing	$	-		$	356		$	2,876		$	1,123		$	760

Nonaccrual loans to total loans		1.17	%		0.83	%		0.66	%		0.72	%		0.58	%
Nonaccrual assets to total assets		1.06			0.71			0.54			0.65			0.57

Allowance for credit losses to:
Total loans at quarter end		1.27	%		1.23	%		1.22	%		1.18	%		1.18	%
Total nonaccrual loans		108.40			147.44			183.16			164.15			204.77

UNITY BANCORP, INC.

QUARTERLY FINANCIAL DATA


(In thousands, except %'s, employee, office and per share amounts)		December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
SUMMARY OF INCOME:
Total interest income		$	45,868		$	44,361		$	42,600		$	40,799		$	40,264
Total interest expense			14,499			14,505			14,043			13,548			13,774
Net interest income			31,369			29,856			28,557			27,251			26,490
Provision (Release) for credit losses			2,258			542			(175)			1,316			1,300
Net interest income after provision for credit losses			29,111			29,314			28,732			25,935			25,190
Total noninterest income			3,898			2,967			5,815			2,099			1,916
Total noninterest expense			13,315			13,415			13,019			12,610			12,617
Income before provision for income taxes			19,694			18,866			21,528			15,424			14,489
Provision for income taxes			4,222			4,476			5,037			3,826			2,984
Net income		$	15,472		$	14,390		$	16,491		$	11,598		$	11,505

Net income per common share - Basic		$	1.55		$	1.43		$	1.64		$	1.16		$	1.15
Net income per common share - Diluted			1.52			1.41			1.61			1.13			1.13

COMMON SHARE DATA:
Market price per share		$	51.72		$	48.87		$	47.08		$	40.70		$	43.61
Dividends paid			0.15			0.15			0.14			0.14			0.13
Book value per common share			34.63			33.26			31.88			30.38			29.48

Weighted average common shares outstanding - Basic			10,008			10,036			10,033			10,054			10,002
Weighted average common shares outstanding - Diluted			10,195			10,233			10,212			10,247			10,204
Issued common shares			10,048			11,681			11,672			11,666			11,616
Outstanding common shares			9,982			10,041			10,032			10,076			10,026
Treasury shares			66			1,640			1,640			1,590			1,590

QUARTERLY PERFORMANCE RATIOS (ANNUALIZED):
Return on average assets			2.20	%		2.11	%		2.51	%		1.83	%		1.83	%
Return on average equity			18.08			17.41			21.15			15.56			15.77
Efficiency ratio**			39.52			41.47			42.31			42.89			44.44
Noninterest expense to average assets			1.89			1.97			1.98			1.99			2.01

BALANCE SHEET DATA:
Total assets		$	2,966,652		$	2,876,365		$	2,928,523		$	2,767,943		$	2,654,017
Total securities			124,015			131,252			139,348			142,092			145,028
Total loans			2,544,713			2,468,527			2,382,594			2,345,130			2,260,657
Allowance for credit losses			32,342			30,245			29,012			27,651			26,788
Total deposits			2,324,061			2,267,484			2,187,366			2,175,398			2,100,313
Total shareholders' equity			345,631			334,023			319,840			306,142			295,583

TAX EQUIVALENT YIELDS AND RATES:
Interest-earning assets			6.72	%		6.74	%		6.70	%		6.68	%		6.64	%
Interest-bearing liabilities			2.94			3.05			3.05			3.04			3.13
Net interest spread			3.78			3.69			3.66			3.64			3.51
Net interest margin			4.60			4.54			4.49			4.46			4.37

CREDIT QUALITY:
Nonaccrual assets		$	31,308		$	20,514		$	15,840		$	17,990		$	15,046
QTD annualized net chargeoffs to QTD average loans			(0.02)	%		(0.03)	%		(0.06)	%		(0.09)	%		(0.12)	%
Allowance for credit losses to total loans			1.27			1.23			1.22			1.18			1.18
Nonaccrual loans to total loans			1.17			0.83			0.66			0.72			0.58
Nonaccrual assets to total assets			1.06			0.71			0.54			0.65			0.57

UNITY BANCORP CAPITAL RATIOS:
Total equity to total assets			11.65	%		11.61	%		10.92	%		11.06	%		11.14	%
Leverage ratio			12.72			12.71			12.50			12.32			12.22
Common Equity Tier 1 Capital Ratio			14.45			14.45			13.96			13.87			13.90
Risk-based Tier 1 Capital Ratio			14.87			14.88			14.39			14.33			14.37
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Risk-based Total Capital Ratio			16.12			16.13			15.65			15.58			15.62

Number of banking offices			22			22			21			21			21
Employee Full-Time Equivalent			242			238			237			227			224
** 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	December 31, 2025		%	December 31, 2024		%
Loans Held for Sale	$	9,490	0.4%	$	12,163	0.5%

SBA Loans		34,259	1.3%		38,309	1.7%

Commercial Loans
SBA 504		43,802	1.7%		48,479	2.1%
Commercial & industrial		183,163	7.2%		147,186	6.5%
Commercial mortgage - owner occupied		660,427	26.0%		577,541	25.6%
Commercial mortgage - nonowner occupied		531,954	20.9%		428,600	19.0%
Other		98,686	3.9%		79,630	3.5%
Total Commercial Loans		1,518,032	59.7%		1,281,436	56.7%

Commercial Construction Loans		147,215	5.8%		130,193	5.8%

Residential Mortgage Loans
Primary residence		472,482	18.6%		427,738	18.9%
Secondary residence		71,656	2.8%		65,063	2.9%
Investor property		133,083	5.2%		138,126	6.1%
Total Residential Mortgage Loans		677,221	26.6%		630,927	27.9%

Consumer Loans
Home equity		82,488	3.2%		73,223	3.2%
Consumer other		2,731	0.1%		3,488	0.2%
Total Consumer Loans		85,219	3.3%		76,711	3.4%

Residential Construction Loans		73,277	2.9%		90,918	4.0%

Total Gross Loans	$	2,544,713	100.0%	$	2,260,657	100.0%

UNITY BANCORP, INC.

QUARTERLY NON-GAAP RECONCILIATION


	For the three months ended
(In thousands, except percentages and per share amounts)	December 31, 2025			September 30, 2025			December 31, 2024
Adjusted net income:
Net income (GAAP)	$	15,472		$	14,390		$	11,505
Non-recurring transactions:
Less: Release of credit losses, securities		-			(787)			-
Less: Net securities gains, unrealized		(1,475)			(218)			-
Add: Adjusted release (provision) for income taxes		354			238			-
Adjusted net income (non-GAAP)	$	14,351		$	13,623		$	11,505

Adjusted net income per common share:
Weighted average common shares outstanding - Basic		10,008			10,036			10,002
Weighted average common shares outstanding - Diluted		10,195			10,233			10,204

Net income per common share - Basic (GAAP)	$	1.55		$	1.43		$	1.15
Net income per common share - Diluted (GAAP)		1.52			1.41			1.13

Adjusted net income per common share - Basic (non-GAAP)	$	1.43		$	1.36		$	-
Adjusted net income per common share - Diluted (non-GAAP)		1.41			1.33			-

Adjusted return on average assets:
Total QTD average assets		2,792,216			2,702,470			2,501,821

Return on average assets (GAAP)		2.20	%		2.11	%		1.83	%
Adjusted return on average assets (non-GAAP)		2.04			2.00			-

Adjusted return on average equity:
Total QTD average equity		339,480			327,851			290,291

Return on average equity (GAAP)		18.08	%		17.41	%		15.77	%
Adjusted return on average equity (non-GAAP)		16.77			16.49			-