8-K
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)

 

 

img213584773_0.jpg

 

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

 

 

gfx259453895_0.jpg

 

gfx259453895_1.gif

Dil. EPS
$1.70

img259453895_2.gif $0.28 Q/Q, GAAP

img259453895_2.gif $0.09 Q/Q, Core*

 

 

gfx259453895_2.gif

ROE
18.11%

img259453895_3.gif 225 bps Q/Q, GAAP

img259453895_3.gif 25 bps Q/Q, Core*

 

 

gfx259453895_2.gif

NIM
4.67%

img259453895_4.gif 11 bps Q/Q, Core* & GAAP

gfx259453895_2.gif

ROA
2.29%

img259453895_5.gif 28 bps Q/Q, GAAP

img259453895_5.gif 3 bps Q/Q, Core*

 

 

Exhibit 99.1

 

img259453895_0.jpg

 

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

 

img259453895_1.gif *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.”

 

img259453895_0.jpg

 

 

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.
o
The 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.
o
The 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.
o
The 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.

 

img259453895_0.jpg

 

 

•
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.
o
During 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.
o
The Leverage Ratio increased 50 basis points to 13.22% at September 30, 2026, compared to 12.72% at December 31, 2025.
o
The 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.
o
The Tier 1 Capital Ratio decreased 3 basis points to 14.84% at September 30, 2026, compared to 14.87% at December 31, 2025.
o
The 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.

 

img259453895_0.jpg

 

 

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.