UNITY BANCORP, INC._April 14, 2026

Exhibit 99.1

Clinton, NJ -- Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $14.3 million, or $1.40 per diluted share, for the quarter ended March 31, 2026, compared to net income of $15.5 million, or $1.52 per diluted share for the quarter ended December 31, 2025.

Quarterly Earnings Highlights

●

Net interest income, the primary driver of earnings, was $30.7 million for the quarter ended March 31, 2026, a decrease of $0.7 million, as compared to $31.4 million for the quarter ended December 31, 2025. Net interest margin (“NIM”) decreased 7 basis points to 4.53% for the quarter ended March 31, 2026, compared to the quarter ended December 31, 2025. The decrease in net interest income was primarily due to day count.

●

The provision for credit losses on loans was $1.0 million for the quarter ended March 31, 2026, compared to $2.2 million for the quarter ended December 31, 2025. The provision in the current quarter was primarily driven by loan growth, with additional increases in qualitative adjustments.

●

Noninterest income was $2.9 million for the quarter ended March 31, 2026, compared to $3.9 million for the quarter ended December 31, 2025. The $1.0 million decrease was primarily due to the $1.5 million unrealized gain associated with Patriot recognized in the prior quarter, partially offset by increased service and loan fee income and gain on sale of SBA and mortgage loans.

●

Noninterest expense was $14.1 million for the quarter ended March 31, 2026, compared to $13.3 million for the quarter ended December 31, 2025. The increase was primarily due to increased compensation and benefits expenses, partially offset by decreases in furniture and equipment, professional services and other expenses. During the quarter ended December 31, 2025, compensation and benefits expenses included $0.7 million of one-time accrual reversals.

●

The effective tax rate was 22.7% for the quarter ended March 31, 2026, compared to 21.4% for the quarter ended December 31, 2025. During the fourth quarter of 2025, Unity purchased $8.0 million of federal tax credits, resulting in $0.5 million of tax savings. Furthermore, during the first quarter of 2026, Unity purchased $5.1 million of tax credits, resulting in $0.4 million of tax savings.

Balance Sheet Highlights

●

Total gross loans increased $56.9 million, or 2.2%, from December 31, 2025, primarily due to increases in the commercial and residential and commercial construction loan categories. Furthermore, gross loans increased $256.5 million, or 10.9% from March 31, 2025.

●

As of March 31, 2026, the allowance for credit losses as a percentage of gross loans was 1.28%.

●

As of March 31, 2026, nonaccrual assets (including OREO) were $32.1 million, compared to $31.3 million as of December 31, 2025. The ratio of nonaccrual loans to total loans was 1.18% as of March 31, 2026. The ratio of nonaccrual assets to total assets was 1.06% as of March 31, 2026. During the fourth quarter of 2025, one $15.5 million commercial real estate relationship migrated to nonaccrual status. This isolated relationship accounts for nearly half of nonaccrual assets.

●

Total deposits increased $55.1 million, or 2.4%, from December 31, 2025. As of March 31, 2026, uninsured or uncollateralized deposits represented 21.6% of total deposits. The Company’s deposit composition as of March 31, 2026, consisted of 19.0% in noninterest bearing demand deposits, 17.2% in interest-bearing demand deposits, 24.9% in savings deposits and 38.9% in time deposits.

●

Borrowed funds decreased $7.5 million from December 31, 2025. Borrowed funds were entirely comprised of borrowings from the FHLB.

●

Shareholders’ equity was $358.1 million as of March 31, 2026, compared to $345.6 million as of December 31, 2025. The $12.5 million increase was primarily driven by 2026 earnings, partially offset by dividend payments and share repurchase activity. During the quarter ended March 31, 2026, Unity Bancorp, Inc. repurchased 6,616 shares at a weighted average price of $49.01 per share.

●

Book value per common share was $35.66 as of March 31, 2026, compared to $34.63 as of December 31, 2025. This increase is primarily due to net income partially offset by dividends and share repurchases.

●

Below is a summary of Unity Bancorp’s regulatory capital ratios:

o

The Leverage Ratio increased 21 basis points to 12.93% at March 31, 2026, compared to 12.72% at December 31, 2025.

o

The Common Equity Tier 1 Capital Ratio increased 5 basis points to 14.50% at March 31, 2026, compared to 14.45% at December 31, 2025.

o

The Tier 1 Capital Ratio increased 4 basis points to 14.91% at March 31, 2026, compared to 14.87% at December 31, 2025.

o

The Total Capital Ratio increased 4 basis points, to 16.16% at March 31, 2026, compared to 16.12% at December 31, 2025.

●

At March 31, 2026, the Company held $229.2 million of cash and cash equivalents. The Company also maintained approximately $410.7 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 124.4% of uninsured or uncollateralized deposits.

Other Highlights

❖

In January 2026, Unity Bancorp, Inc. was named as one of Piper Sandler’s Top Bank Investment Ideas for 2026, which compiles the firm’s highest-conviction investment recommendations across the banking sector.

❖

In February 2026, Unity Bancorp, Inc. announced a 7% increase for its first quarter dividend from $0.15 per common share to $0.16 per common share.

❖

Unity Bancorp, Inc. will hold its virtual annual shareholder meeting on Thursday, April 23rd at 8:00 AM EDT. Refer to our 2026 Proxy for further details.

Unity Bancorp, Inc. is a financial services organization headquartered in Clinton, New Jersey, with approximately $3.0 billion in assets and $2.4 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

March 31, 2026


										March 31, 2026 vs.
										December 31, 2025		March 31, 2025
(In thousands, except percentages and per share amounts)	March 31, 2026			December 31, 2025			March 31, 2025			%		%
BALANCE SHEET DATA
Total assets	$	3,027,327		$	2,966,652		$	2,767,943		2.0	%	9.4	%
Total deposits		2,379,140			2,324,061			2,175,398		2.4		9.4
Total gross loans		2,601,656			2,544,713			2,345,130		2.2		10.9
Total securities		115,268			124,015			142,092		(7.1)		(18.9)
Total shareholders' equity		358,095			345,631			306,142		3.6		17.0
Allowance for credit losses		33,354			32,342			27,651		3.1		20.6

FINANCIAL DATA - QUARTER TO DATE
Income before provision for income taxes	$	18,487		$	19,694		$	15,424		(6.1)		19.9
Provision for income taxes		4,199			4,222			3,826		(0.5)		9.7
Net income	$	14,288		$	15,472		$	11,598		(7.7)		23.2

Net income per common share - Basic	$	1.43		$	1.55		$	1.15		(7.7)		24.3
Net income per common share - Diluted		1.40			1.52			1.13		(7.9)		23.9

PERFORMANCE RATIOS - QUARTER TO DATE (ANNUALIZED)
Return on average assets		2.04	%		2.20	%		1.83	%
Return on average equity		16.38			18.08			15.56
Efficiency ratio**		41.77			39.52			42.89
Cost of funds		2.38			2.38			2.46
Net interest margin		4.53			4.60			4.46
Noninterest expense to average assets		2.01			1.89			1.99

SHARE INFORMATION
Market price per share	$	51.83		$	51.72		$	40.70		0.2		27.3
Dividends paid (QTD)		0.16			0.15			0.14		6.7		14.3
Book value per common share		35.66			34.63			30.38		3.0		17.4
Average diluted shares outstanding (QTD)		10,199			10,195			10,247		-		(0.5)

UNITY BANCORP CAPITAL RATIOS
Total equity to total assets		11.83	%		11.65	%		11.06	%	1.5		7.0
Leverage ratio		12.93			12.72			12.32		1.7		5.0
Common Equity Tier 1 Capital Ratio		14.50			14.45			13.87		0.3		4.5
Risk-based Tier 1 Capital Ratio		14.91			14.87			14.33		0.3		4.0
Risk-based Total Capital Ratio		16.16			16.12			15.58		0.2		3.7

CREDIT QUALITY AND RATIOS
Nonaccrual assets	$	32,092		$	31,308		$	17,990		2.5		78.4
QTD annualized net chargeoffs to QTD average loans		(0.01)	%		(0.02)	%		(0.09)	%
Allowance for credit losses to total loans		1.28			1.27			1.18
Nonaccrual loans to total loans		1.18			1.17			0.72
Nonaccrual assets to total assets		1.06			1.06			0.65
** 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

March 31, 2026


							March 31, 2026 vs.
							December 31, 2025		March 31, 2025
(In thousands, except percentages)	March 31, 2026		December 31, 2025		March 31, 2025		%		%

ASSETS
Cash and due from banks	$	24,591	$	19,841	$	26,378	23.9	%	(6.8)	%
Interest-bearing deposits		204,569		196,678		185,215	4.0		10.4
Cash and cash equivalents		229,160		216,519		211,593	5.8		8.3
Securities:
Debt securities available for sale, at market value, net of valuation allowance		63,301		70,870		90,438	(10.7)		(30.0)
Debt securities held to maturity, at book value		36,648		36,576		40,947	0.2		(10.5)
Equity securities, at market value		15,319		16,569		10,707	(7.5)		43.1
Total securities		115,268		124,015		142,092	(7.1)		(18.9)
Loans:
Loans held for sale		12,557		9,490		14,000	32.3		(10.3)
SBA loans held for investment		32,499		34,259		37,993	(5.1)		(14.5)
Commercial loans		1,559,166		1,518,032		1,357,023	2.7		14.9
Commercial construction loans		159,200		147,215		129,831	8.1		22.6
Residential mortgage loans		668,739		677,221		654,250	(1.3)		2.2
Consumer loans		85,614		85,219		78,620	0.5		8.9
Residential construction loans		83,881		73,277		73,413	14.5		14.3
Total loans		2,601,656		2,544,713		2,345,130	2.2		10.9
Allowance for credit losses		(33,354)		(32,342)		(27,651)	3.1		20.6
Net loans		2,568,302		2,512,371		2,317,479	2.2		10.8
Premises and equipment, net		18,118		18,022		18,715	0.5		(3.2)
Bank owned life insurance ("BOLI")		26,764		26,547		25,925	0.8		3.2
Deferred tax assets		14,888		14,640		14,627	1.7		1.8
Federal Home Loan Bank ("FHLB") stock		13,989		14,314		13,583	(2.3)		3.0
Accrued interest receivable		13,255		12,896		12,998	2.8		2.0
Goodwill		1,516		1,516		1,516	-		-
Other real estate owned ("OREO")		1,472		1,472		-	-		*NM
Prepaid expenses and other assets		24,595		24,340		9,415	1.0		161.2
Total assets	$	3,027,327	$	2,966,652	$	2,767,943	2.0	%	9.4	%

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing demand	$	451,138	$	465,596	$	454,425	(3.1)	%	(0.7)	%
Interest-bearing demand		378,162		369,131		351,485	2.4		7.6
Savings		582,730		535,044		491,449	8.9		18.6
Brokered deposits		270,603		274,203		202,323	(1.3)		33.7
Time deposits		696,507		680,087		675,716	2.4		3.1
Total deposits		2,379,140		2,324,061		2,175,398	2.4		9.4
Borrowed funds		248,274		255,774		243,292	(2.9)		2.0
Subordinated debentures		10,310		10,310		10,310	-		-
Accrued interest payable		2,302		2,138		2,147	7.7		7.2
Accrued expenses and other liabilities		29,206		28,738		30,654	1.6		(4.7)
Total liabilities		2,669,232		2,621,021		2,461,801	1.8		8.4
Shareholders' equity:
Common stock		106,034		105,892		104,033	0.1		1.9
Retained earnings		256,620		243,935		237,518	5.2		8.0
Treasury stock, at cost		(3,425)		(3,101)		(33,577)	(10.4)		(89.8)
Accumulated other comprehensive loss		(1,134)		(1,095)		(1,832)	3.6		(38.1)
Total shareholders' equity		358,095		345,631		306,142	3.6		17.0
Total liabilities and shareholders' equity	$	3,027,327	$	2,966,652	$	2,767,943	2.0	%	9.4	%

Shares issued		10,114		10,048		11,666
Shares outstanding		10,041		9,982		10,076
Treasury shares		73		66		1,590

*NM=Not meaningful

UNITY BANCORP, INC.

QTD CONSOLIDATED STATEMENTS OF INCOME

March 31, 2026


										March 31, 2026 vs.
	For the three months ended									December 31, 2025					March 31, 2025
(In thousands, except percentages and per share amounts)	March 31, 2026			December 31, 2025			March 31, 2025			$		%			$		%
INTEREST INCOME
Interest-bearing deposits	$	558		$	674		$	332		$	(116)		(17.2)	%	$	226		68.1	%
FHLB stock		134			133			182			1		0.8			(48)		(26.4)
Securities:
Taxable		1,409			1,561			1,786			(152)		(9.7)			(377)		(21.1)
Tax-exempt		18			18			18			-		-			-		-
Total securities		1,427			1,579			1,804			(152)		(9.6)			(377)		(20.9)
Loans:
SBA loans		844			1,037			934			(193)		(18.6)			(90)		(9.6)
Commercial loans		25,016			25,626			21,314			(610)		(2.4)			3,702		17.4
Commercial construction loans		3,038			2,666			2,946			372		14.0			92		3.1
Residential mortgage loans		10,913			10,838			9,947			75		0.7			966		9.7
Consumer loans		1,424			1,524			1,346			(100)		(6.6)			78		5.8
Residential construction loans		1,825			1,791			1,996			34		1.9			(171)		(8.6)
Total loans		43,060			43,482			38,483			(422)		(1.0)			4,577		11.9
Total interest income		45,179			45,868			40,801			(689)		(1.5)			4,378		10.7
INTEREST EXPENSE
Interest-bearing demand deposits		1,910			2,009			1,622			(99)		(4.9)			288		17.8
Savings deposits		3,160			3,165			2,593			(5)		(0.2)			567		21.9
Brokered deposits		2,267			2,033			1,787			234		11.5			480		26.9
Time deposits		6,128			6,350			6,415			(222)		(3.5)			(287)		(4.5)
Borrowed funds and subordinated debentures		984			942			1,133			42		4.5			(149)		(13.2)
Total interest expense		14,449			14,499			13,550			(50)		(0.3)			899		6.6
Net interest income		30,730			31,369			27,251			(639)		(2.0)			3,479		12.8
Provision for credit losses, loans		1,043			2,208			1,358			(1,165)		(52.8)			(315)		(23.2)
Provision (Release) for credit losses, off-balance sheet		5			50			(41)			(45)		(90.0)			46		112.2
(Release) provision of credit losses, securities		-			-			-			-		-			-		-
Net interest income after provision for credit losses		29,682			29,111			25,934			571		2.0			3,748		14.5
NONINTEREST INCOME
Branch fee income		489			475			447			14		2.9			42		9.4
Service and loan fee income		912			705			864			207		29.4			48		5.6
Gain on sale of SBA loans held for sale, net		427			165			139			262		158.8			288		207.2
Gain on sale of mortgage loans, net		500			343			168			157		45.8			332		197.6
BOLI income		217			228			151			(11)		(4.8)			66		43.7
Net securities (losses) gains		(82)			1,570			(49)			(1,652)		*NM			(33)		(67.3)
Other income		413			412			381			1		0.2			32		8.4
Total noninterest income		2,876			3,898			2,101			(1,022)		(26.2)			775		36.9
NONINTEREST EXPENSE
Compensation and benefits		8,673			7,693			7,902			980		12.7			771		9.8
Processing and communications		1,146			1,077			986			69		6.4			160		16.2
Occupancy		987			880			880			107		12.2			107		12.2
Furniture and equipment		715			854			746			(139)		(16.3)			(31)		(4.2)
Professional services		488			640			364			(152)		(23.8)			124		34.1
Advertising		393			379			391			14		3.7			2		0.5
Loan related expenses		473			426			46			47		11.0			427		928.3
Deposit insurance		300			300			241			-		-			59		24.5
Director fees		260			271			495			(11)		(4.1)			(235)		(47.5)
Other expenses		636			795			560			(159)		(20.0)			76		13.6
Total noninterest expense		14,071			13,315			12,611			756		5.7			1,460		11.6
Income before provision for income taxes		18,487			19,694			15,424			(1,207)		(6.1)			3,063		19.9
Provision for income taxes		4,199			4,222			3,826			(23)		(0.5)			373		9.7
Net income	$	14,288		$	15,472		$	11,598		$	(1,184)		(7.7)	%	$	2,690		23.2	%

Effective tax rate		22.7	%		21.4	%		24.8	%

Net income per common share - Basic	$	1.43		$	1.55		$	1.15
Net income per common share - Diluted		1.40			1.52			1.13

Weighted average common shares outstanding - Basic		10,012			10,008			10,054
Weighted average common shares outstanding - Diluted		10,199			10,195			10,247
*NM=Not meaningful

UNITY BANCORP, INC.

QUARTER TO DATE NET INTEREST MARGIN

March 31, 2026


	For the three months ended
(Dollar amounts in thousands, interest amounts and	March 31, 2026							March 31, 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	$	61,424	$	558		3.69	%	$	30,259	$	332		4.45	%
FHLB stock		7,214		134		7.53			7,459		182		9.90
Securities:
Taxable		118,488		1,409		4.76			142,847		1,786		5.00
Tax-exempt		1,486		21		5.60			1,596		18		4.59
Total securities (A)		119,974		1,430		4.77			144,443		1,804		5.00
Loans:
SBA loans		41,576		844		8.12			49,638		934		7.53
Commercial loans		1,528,022		25,016		6.55			1,306,052		21,314		6.53
Commercial construction loans		152,561		3,038		7.96			140,946		2,946		8.36
Residential mortgage loans		678,359		10,913		6.44			639,742		9,947		6.22
Consumer loans		84,037		1,424		6.78			75,156		1,346		7.16
Residential construction loans		80,226		1,825		9.10			84,414		1,996		9.46
Total loans (B)		2,564,781		43,060		6.72			2,295,948		38,483		6.70
Total interest-earning assets	$	2,753,393	$	45,182		6.66	%	$	2,478,109	$	40,801		6.68	%

Noninterest-earning assets:
Cash and due from banks		24,735							23,117
Allowance for credit losses		(33,007)							(27,455)
Other assets		98,891							91,553
Total noninterest-earning assets		90,619							87,215
Total assets	$	2,844,012						$	2,565,324

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits	$	385,444	$	1,910		2.01	%	$	341,991	$	1,622		1.92	%
Savings deposits		563,220		3,160		2.28			495,051		2,593		2.12
Brokered deposits		265,877		2,267		3.46			213,517		1,787		3.39
Time deposits		685,355		6,128		3.63			637,936		6,415		4.08
Total interest-bearing deposits		1,899,896		13,465		2.87			1,688,495		12,417		2.98
Borrowed funds and subordinated debentures		108,231		984		3.64			119,135		1,133		3.80
Total interest-bearing liabilities	$	2,008,127	$	14,449		2.92	%	$	1,807,630	$	13,550		3.04	%

Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		457,603							425,569
Other liabilities		24,594							29,833
Total noninterest-bearing liabilities		482,197							455,402
Total shareholders' equity		353,688							302,292
Total liabilities and shareholders' equity	$	2,844,012						$	2,565,324

Net interest spread			$	30,733		3.74	%			$	27,251		3.64	%
Tax-equivalent basis adjustment				(3)							-
Net interest income			$	30,730						$	27,251
Net interest margin						4.53	%						4.46	%

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

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

UNITY BANCORP, INC.

QUARTER TO DATE NET INTEREST MARGIN

March 31, 2026


	For the three months ended
(Dollar amounts in thousands, interest amounts and	March 31, 2026							December 31, 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	$	61,424	$	558		3.69	%	$	66,840	$	674		4.00	%
FHLB stock		7,214		134		7.53			6,859		133		7.67
Securities:
Taxable		118,488		1,409		4.76			128,384		1,561		4.86
Tax-exempt		1,486		21		5.60			1,474		21		5.67
Total securities (A)		119,974		1,430		4.77			129,858		1,582		4.87
Loans:
SBA Loans		41,576		844		8.12			45,686		1,037		9.08
Commercial loans		1,528,022		25,016		6.55			1,487,472		25,626		6.74
Commercial construction loans		152,561		3,038		7.96			131,268		2,666		7.95
Residential mortgage loans		678,359		10,913		6.44			680,679		10,838		6.37
Consumer loans		84,037		1,424		6.78			84,318		1,524		7.07
Residential construction loans		80,226		1,825		9.10			74,915		1,791		9.35
Total loans (B)		2,564,781		43,060		6.72			2,504,338		43,482		6.79
Total interest-earning assets	$	2,753,393	$	45,182		6.66	%	$	2,707,895	$	45,871		6.72	%

Noninterest-earning assets:
Cash and due from banks		24,735							23,135
Allowance for credit losses		(33,007)							(30,791)
Other assets		98,891							91,977
Total noninterest-earning assets		90,619							84,321
Total assets	$	2,844,012						$	2,792,216

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits	$	385,444	$	1,910		2.01	%	$	391,005	$	2,009		2.04	%
Savings deposits		563,220		3,160		2.28			546,025		3,165		2.30
Brokered deposits		265,877		2,267		3.46			231,956		2,033		3.48
Time deposits		685,355		6,128		3.63			687,058		6,350		3.67
Total interest-bearing deposits		1,899,896		13,465		2.87			1,856,044		13,557		2.90
Borrowed funds and subordinated debentures		108,231		984		3.64			100,689		942		3.66
Total interest-bearing liabilities	$	2,008,127	$	14,449		2.92	%	$	1,956,733	$	14,499		2.94	%

Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		457,603							462,977
Other liabilities		24,594							33,026
Total noninterest-bearing liabilities		482,197							496,003
Total shareholders' equity		353,688							339,480
Total liabilities and shareholders' equity	$	2,844,012						$	2,792,216

Net interest spread			$	30,733		3.74	%			$	31,372		3.78	%
Tax-equivalent basis adjustment				(3)							(3)
Net interest income			$	30,730						$	31,369
Net interest margin						4.53	%						4.60	%

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

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

UNITY BANCORP, INC.

QUARTERLY ALLOWANCE FOR CREDIT LOSSES AND LOAN QUALITY SCHEDULES

March 31, 2026


Amounts in thousands, except percentages	March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025
ALLOWANCE FOR CREDIT LOSSES:
Balance, beginning of period	$	32,342		$	30,245		$	29,012		$	27,651		$	26,788
Provision for credit losses for loans		1,043			2,208			1,409			1,725			1,358
		33,385			32,453			30,421			29,376			28,146
Less: Chargeoffs
SBA loans		50			265			211			105			350
Commercial loans		140			-			-			100			2
Residential mortgage loans		-			46			85			282			130
Consumer loans		10			11			30			21			50
Residential construction loans		40			-			-			-			-
Total chargeoffs		240			322			326			508			532
Add: Recoveries
SBA loans		5			4			50			2			5
Commercial loans		93			196			92			102			5
Residential mortgage loans		100			-			-			-			-
Consumer loans		11			11			8			40			27
Residential construction loans		-			-			-			-			-
Total recoveries		209			211			150			144			37
Net chargeoffs		(31)			(111)			(176)			(364)			(495)
Balance, end of period	$	33,354		$	32,342		$	30,245		$	29,012		$	27,651

ASSET QUALITY INFORMATION:

Nonaccrual loans:
SBA loans	$	1,645		$	1,751		$	4,225		$	4,177		$	3,231
Commercial loans		18,375			18,473			4,006			3,512			4,821
Residential mortgage loans		8,915			8,173			11,174			7,980			8,622
Consumer loans		1,557			1,268			938			-			-
Residential construction loans		128			171			171			171			171
Total nonaccrual loans		30,620			29,836			20,514			15,840			16,845
Debt securities available for sale, net of valuation allowance		-			-			-			-			1,145
OREO		1,472			1,472			-			-			-
Nonaccrual assets		32,092			31,308			20,514			15,840			17,990

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

Nonaccrual loans to total loans		1.18	%		1.17	%		0.83	%		0.66	%		0.72	%
Nonaccrual assets to total assets		1.06			1.06			0.71			0.54			0.65

Allowance for credit losses to:
Total loans		1.28	%		1.27	%		1.23	%		1.22	%		1.18	%
Total nonaccrual loans		108.93			108.40			147.44			183.16			164.15

UNITY BANCORP, INC.

QUARTERLY FINANCIAL DATA

March 31, 2026


(In thousands, except %'s, employee, office and per share amounts)	March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025
SUMMARY OF INCOME:
Total interest income	$	45,179		$	45,868		$	44,361		$	42,600		$	40,799
Total interest expense		14,449			14,499			14,505			14,043			13,548
Net interest income		30,730			31,369			29,856			28,557			27,251
Provision (Release) for credit losses		1,048			2,258			542			(175)			1,316
Net interest income after provision for credit losses		29,682			29,111			29,314			28,732			25,935
Total noninterest income		2,876			3,898			2,967			5,815			2,099
Total noninterest expense		14,071			13,315			13,415			13,019			12,610
Income before provision for income taxes		18,487			19,694			18,866			21,528			15,424
Provision for income taxes		4,199			4,222			4,476			5,037			3,826
Net income	$	14,288		$	15,472		$	14,390		$	16,491		$	11,598

Net income per common share - Basic	$	1.43		$	1.55		$	1.43		$	1.64		$	1.16
Net income per common share - Diluted		1.40			1.52			1.41			1.61			1.13

COMMON SHARE DATA:
Market price per share	$	51.83		$	51.72		$	48.87		$	47.08		$	40.70
Dividends paid		0.16			0.15			0.15			0.14			0.14
Book value per common share		35.66			34.63			33.26			31.88			30.38

Weighted average common shares outstanding - Basic		10,012			10,008			10,036			10,033			10,054
Weighted average common shares outstanding - Diluted		10,199			10,195			10,233			10,212			10,247
Issued common shares		10,114			10,048			11,681			11,672			11,666
Outstanding common shares		10,041			9,982			10,041			10,032			10,076
Treasury shares		73			66			1,640			1,640			1,590

QUARTERLY PERFORMANCE RATIOS (ANNUALIZED):
Return on average assets		2.04	%		2.20	%		2.11	%		2.51	%		1.83	%
Return on average equity		16.38			18.08			17.41			21.15			15.56
Efficiency ratio **		41.77			39.52			41.47			42.31			42.89
Noninterest expense to average assets		2.01			1.89			1.97			1.98			1.99

BALANCE SHEET DATA:
Total assets	$	3,027,327		$	2,966,652		$	2,876,365		$	2,928,523		$	2,767,943
Total securities		115,268			124,015			131,252			139,348			142,092
Total loans		2,601,656			2,544,713			2,468,527			2,382,594			2,345,130
Allowance for credit losses		33,354			32,342			30,245			29,012			27,651
Total deposits		2,379,140			2,324,061			2,267,484			2,187,366			2,175,398
Total shareholders' equity		358,095			345,631			334,023			319,840			306,142

TAX EQUIVALENT YIELDS AND RATES:
Interest-earning assets		6.66	%		6.72	%		6.74	%		6.70	%		6.68	%
Interest-bearing liabilities		2.92			2.94			3.05			3.05			3.04
Net interest spread		3.74			3.78			3.69			3.66			3.64
Net interest margin		4.53			4.60			4.54			4.49			4.46

CREDIT QUALITY:
Nonaccrual assets	$	32,092		$	31,308		$	20,514		$	15,840		$	17,990
QTD annualized net chargeoffs to QTD average loans		(0.01)	%		(0.02)	%		(0.03)	%		(0.06)	%		(0.09)	%
Allowance for credit losses to total loans		1.28			1.27			1.23			1.22			1.18
Nonaccrual loans to total loans		1.18			1.17			0.83			0.66			0.72
Nonaccrual assets to total assets		1.06			1.06			0.71			0.54			0.65

UNITY BANCORP CAPITAL RATIOS
Total equity to total assets		11.83	%		11.65	%		11.61	%		10.92	%		11.06	%
Leverage ratio		12.93			12.72			12.71			12.50			12.32
Common Equity Tier 1 Capital Ratio		14.50			14.45			14.45			13.96			13.87
Risk-based Tier 1 Capital Ratio		14.91			14.87			14.88			14.39			14.33
Risk-based Total Capital Ratio		16.16			16.12			16.13			15.65			15.58

Number of banking offices		22			22			22			21			21
Employee Full-Time Equivalent		244			242			238			237			227

** 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

March 31, 2026


In thousands, except percentages	March 31, 2026		%	December 31, 2025		%
Loans Held for Sale	$	12,557	0.5%	$	9,490	0.4%

SBA Loans		32,499	1.2%		34,259	1.3%

Commercial Loans
SBA 504		43,254	1.7%		43,802	1.7%
Commercial & industrial		185,207	7.1%		183,163	7.2%
Commercial mortgage - owner occupied		681,803	26.2%		660,427	26.0%
Commercial mortgage - nonowner occupied		561,057	21.6%		531,954	20.9%
Other		87,845	3.4%		98,686	3.9%
Total Commercial Loans		1,559,166	60.0%		1,518,032	59.7%

Commercial Construction Loans		159,200	6.1%		147,215	5.8%

Residential Mortgage Loans
Primary residence		467,329	18.0%		472,482	18.6%
Secondary residence		67,835	2.6%		71,656	2.8%
Investor property		133,575	5.1%		133,083	5.2%
Total Residential Mortgage Loans		668,739	25.7%		677,221	26.6%

Consumer Loans
Home equity		82,980	3.2%		82,488	3.2%
Consumer other		2,634	0.1%		2,731	0.1%
Total Consumer Loans		85,614	3.3%		85,219	3.3%

Residential Construction Loans		83,881	3.2%		73,277	2.9%

Total Gross Loans	$	2,601,656	100.0%	$	2,544,713	100.0%

UNITY BANCORP, INC.

QUARTERLY NON-GAAP / CORE RECONCILIATION

March 31, 2026


	For the three months ended
(In thousands, except percentages and per share amounts)	March 31, 2026			December 31, 2025			March 31, 2025
Adjusted net income:
Net income (GAAP)	$	14,288		$	15,472		$	11,598
Non-recurring transactions:
Less: Net securities gains, unrealized		-			(1,475)			-
Add: Adjusted release of income taxes		-			354			-
Adjusted net income (non-GAAP)	$	14,288		$	14,351		$	11,598

Adjusted net income per common share:
Weighted average common shares outstanding - Basic		10,012			10,008			10,054
Weighted average common shares outstanding - Diluted		10,199			10,195			10,247

Net income per common share - Basic (GAAP)	$	1.43		$	1.55		$	1.15
Net income per common share - Diluted (GAAP)		1.40			1.52			1.13

Adjusted net income per common share - Basic (non-GAAP)	$	N/A		$	1.43		$	N/A
Adjusted net income per common share - Diluted (non-GAAP)		N/A			1.41			N/A

Adjusted return on average assets:
Total QTD average assets		2,844,012			2,792,216			2,565,324

Return on average assets (GAAP)		2.04	%		2.20	%		1.83	%
Adjusted return on average assets (non-GAAP)		N/A			2.04			N/A

Adjusted return on average equity:
Total QTD average equity		353,688			339,480			302,292

Return on average equity (GAAP)		16.38	%		18.08	%		15.56	%
Adjusted return on average equity (non-GAAP)		N/A			16.77			N/A

Management uses these non-GAAP measures as internal benchmarks in evaluating operating performance and in planning and forecasting future periods.


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


☐	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))

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

Date: April 14, 2026
	By:	/s/ James Davies
		James Davies
		First Senior Vice President & Chief Financial Officer


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