EX-99.1 2 unty-20251014xex99d1.htm EX-99.1

Exhibit 99.1

We are proud to expand our footprint with the opening of our 22nd branch in Madison, NJ, reinforcing our commitment to serving local communities with personalized banking solutions. This new location reflects our continued growth and dedication to deepening relationships across New Jersey. As the Federal Reserve’s recent rate cut aims to stimulate economic activity amid ongoing uncertainty, Unity is well-positioned to strengthen customer relationships and expand lending initiatives, driving continued momentum and long-term value for our shareholders.”

Clinton, NJ -- Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $14.4 million, or $1.41 per diluted share, for the quarter ended September 30, 2025, compared to net income of $16.5 million, or $1.61 per diluted share for the quarter ended June 30, 2025. For the nine months ended September 30, 2025, Unity Bancorp reported net income of $42.5 million, or $4.15 per diluted share, compared to net income of $29.9 million, or $2.94 per diluted share, for the nine months ended September 30, 2024.

Third Quarter Earnings Highlights

●

Net interest income, the primary driver of earnings, was $29.9 million for the quarter ended September 30, 2025, an increase of $1.3 million, as compared to $28.6 million for the quarter ended June 30, 202 5. Net interest margin (“NIM”) increased 5 basis points to 4.54% for the quarter ended September 30, 2025, compared to the quarter ended June 30, 2025. The increase was due to the yield on interest-earning assets increasing.

●

The provision for credit losses on loans was $1.4 million for the quarter ended September 30, 2025, compared to $1.7 million for the quarter ended June 30, 2025. The provision in the current quarter was primarily driven by loan growth.

●

During the quarter ended September 30, 2025, Unity converted its debt security issued by Patriot National Bancorp, Inc. into common stock. As of September 30, 2025, Unity held approximately 2.673 million shares of restricted Patriot common stock, valued at $0.75 per share. These shares remain restricted pending registration by Patriot (or such other time that an exemption from registration is available permitting the removal of such restrictions) and eligibility for trading on a national securities exchange. In connection with the conversion, Unity released $0.8 million from the reserve for credit losses on securities and recognized a one-time unrealized gain of $0.2 million through net securities gains. Additionally, during the quarter ended June 30, 2025, Unity realized a gain of $3.5 million and released a $2.0 million reserve for credit losses on securities associated with the Patriot National Bancorp, Inc. positions.

●

Noninterest income was $3.0 million for the quarter ended September 30, 2025, compared to $5.8 million for the quarter ended June 30, 2025. The $2.8 million decrease was primarily due to the Q2 one-time realized gain of $3.5 million discussed above. The decrease was partially offset by increases in core operating noninterest income components, most notably gain on sale of mortgages, gain on sale of SBA loans and service and loan fee income.

●

Noninterest expense was $13.4 million for the quarter ended September 30, 2025, compared to $13.0 million for the quarter ended June 30, 2025. Increases were predominately recognized in the compensation and benefits and the processing and communication categories. The increase was partially offset by decreases in the loan related expense category.

●

The effective tax rate was 23.7% for the quarter ended September 30, 2025, compared to 23.4% for the quarter ended June 30, 2025.

Balance Sheet Highlights

●

Total gross loans increased $207.9 million, or 9.2%, from December 31, 2024, primarily due to increases in the commercial and residential mortgage loan categories. This was partially offset by decreases in the residential construction loan category. Furthermore, gross loans increase $85.9 million, or 3.6% from June 30, 2025.

●

As of September 30, 2025, the allowance for credit losses as a percentage of gross loans was 1.23%.

●

Total deposits increased $167.2 million, or 8.0%, from December 31, 2024. Further, total deposits increased $80.1 million, or 3.7% from June 30, 2025. As of September 30, 2025, 21.6% of total deposits were uninsured or uncollateralized. The Company’s deposit composition as of September 30, 2025, consisted of 19.7% in noninterest bearing demand deposits, 17.4% in interest-bearing demand deposits, 23.7% in savings deposits and 39.2% in time deposits.

●

As of September 30, 2025, investments comprised 4.6% of total assets. Available for sale debt securities (“AFS”) were $82.1 million or 2.9% of total assets. Held to maturity (“HTM”) debt securities were $36.5 million or 1.3% of total assets. As of September 30, 2025, pre-tax net unrealized losses on AFS and HTM were $1.9 million and $6.5 million, respectively. These pre-tax unrealized losses represent approximately 2.4% of the Company’s Tier 1 capital. Equity securities were $12.7 million or 0.4% of total assets as of September 30, 2025.

●

Borrowed funds increased $11.2 million from December 31, 2024. Borrowed funds were entirely comprised of borrowings from the FHLB.

●

Shareholders’ equity was $334.0 million as of September 30, 2025, compared to $295.6 million as of December 31, 2024. The $38.4 million increase was primarily driven by 2025 earnings, partially offset by dividend payments and share repurchase activity. Unity Bancorp did not repurchase stock during the quarter ended September 30, 2025.

●

Book value per common share was $33.26 as of September 30, 2025, compared to $29.48 as of December 31, 2024. This increase primarily reflects retained earnings offset partially by dividends and share repurchases.

●

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

o

The Leverage Ratio increased 49 basis points to 12.71% at September 30, 2025, compared to 12.22% at December 31, 2024.

o

The Common Equity Tier 1 Capital Ratio increased 55 basis points to 14.45% at September 30, 2025, compared to 13.90% at December 31, 2024.

o

The Tier 1 Capital Ratio increased 51 basis points to 14.88% at September 30, 2025, compared to 14.37% at December 31, 2024.

o

The Total Capital Ratio increased 51 basis points, to 16.13% at September 30, 2025, compared to 15.62% at December 31, 2024.

●

At September 30, 2025, the Company held $203.5 million of cash and cash equivalents. The Company also maintained approximately $548.2 million of funding available from various sources, including the FHLB, FRB Discount Window and other lines of credit. Total available funding plus cash on hand represented 153.5% of uninsured or uncollateralized deposits.

●

As of September 30, 2025, nonaccrual assets were $20.5 million, compared to $15.8 million as of June 30, 2025. The ratio of nonaccrual loans to total loans was 0.83% as of September 30, 2025. The ratio of nonaccrual assets to total assets was 0.71% as of September 30, 2025. The increase primarily reflects increased nonaccrual residential mortgages that are well secured by 1 to 4 family residential properties.

Other Highlights

❖

In September 2025, Unity Bank celebrated the opening of a new branch in Madison, New Jersey. This branch increased the total number of branches to 22, and the new location strengthens Unity’s Morris County presence.

❖

In August 2025, Unity Bancorp Inc announced a 7% increase in its third quarter cash dividend. This is in addition to the 8% increase announced in the first quarter. The third quarter cash dividend represented $0.15 per common share.

❖

In August 2025, Unity Bancorp Inc was ranked 14^th among the top 25 publicly traded banks in the United States, according to Bank Director’s 2025 RankingBanking report. Unity’s consistent profitability, capital adequacy and asset quality metrics contributed to the strong placement in the national ranking.

Unity Bancorp, Inc. is a financial services organization headquartered in Clinton, New Jersey, with approximately $2.9 billion in assets and $2.3 billion in deposits. Unity Bank, the Company’s wholly owned subsidiary, provides financial services to retail, corporate and small business customers through its robust branch network located in Bergen, Hunterdon, Middlesex, Morris, Ocean, Somerset, Union and Warren Counties in New Jersey and Northampton County in Pennsylvania. For additional information about Unity, visit our website at www.unitybank.com , or call 800-618-BANK.

This news release contains certain forward-looking statements, either expressed or implied, which are provided to assist the reader in understanding anticipated future financial performance. These statements may be identified by use of the words “believe”, “expect”, “intend”, “anticipate”, “estimate”, “project” or similar expressions. These statements involve certain risks, uncertainties, estimates and assumptions made by management, which are subject to factors beyond the Company’s control that could impede its ability to achieve these goals. These factors include those items included in our Annual Report on Form 10-K under the heading “Item IA-Risk Factors” as amended or supplemented by our subsequent filings with the SEC, as well as general economic conditions, trends in interest rates, the ability of our borrowers to repay their loans, our ability to manage and reduce the level of our nonperforming assets, results of regulatory exams, the impact of any health crisis or national disasters on the Bank, its employees and customers, and the impact of uncertain or changing political conditions or any current or future federal government shutdown and uncertainty regarding the federal government’s debt limit or changes in fiscal, monetary, trade or regulatory policy, among other factors.

UNITY BANCORP, INC.

SUMMARY FINANCIAL HIGHLIGHTS


										September 30, 2025 vs.
										June 30, 2025		September 30, 2024
(In thousands, except percentages and per share amounts)	September 30, 2025			June 30, 2025			September 30, 2024			%		%
BALANCE SHEET DATA
Total assets	$	2,876,365		$	2,928,523		$	2,635,319		(1.8)	%	9.1	%
Total deposits		2,267,484			2,187,366			2,046,137		3.7		10.8
Total gross loans		2,468,527			2,382,594			2,217,393		3.6		11.3
Total securities		131,252			139,348			143,712		(5.8)		(8.7)
Total shareholders' equity		334,023			319,840			284,257		4.4		17.5
Allowance for credit losses		30,245			29,012			27,002		4.2		12.0

FINANCIAL DATA - QUARTER TO DATE
Income before provision for income taxes	$	18,866		$	21,528		$	14,567		(12.4)		29.5
Provision for income taxes		4,476			5,037			3,662		(11.1)		22.2
Net income	$	14,390		$	16,491		$	10,905		(12.7)		32.0

Net income per common share - Basic	$	1.43		$	1.64		$	1.09		(12.8)		31.2
Net income per common share - Diluted		1.41			1.61			1.07		(12.4)		31.8

PERFORMANCE RATIOS - QUARTER TO DATE (ANNUALIZED)
Return on average assets		2.11	%		2.51	%		1.76	%
Return on average equity		17.41			21.15			15.55
Efficiency ratio**		41.47			42.31			44.23
Cost of funds		2.46			2.46			2.71
Net interest margin		4.54			4.49			4.16
Noninterest expense to average assets		1.97			1.98			1.94

FINANCIAL DATA - YEAR TO DATE
Income before provision for income taxes	$	55,823					$	39,901				39.9
Provision for income taxes		13,339						9,956				34.0
Net income	$	42,484					$	29,945				41.9

Net income per common share - Basic	$	4.23					$	2.98				41.9
Net income per common share - Diluted		4.15						2.94				41.2

PERFORMANCE RATIOS - YEAR TO DATE (ANNUALIZED)
Return on average assets		2.15	%					1.64	%
Return on average equity		18.07						14.72
Efficiency ratio**		42.20						46.25
Cost of funds		2.46						2.70
Net interest margin		4.50						4.09
Noninterest expense to average assets		1.98						1.97

SHARE INFORMATION
Market price per share	$	48.87		$	47.08		$	34.06		3.8		43.5
Dividends paid (QTD)		0.15			0.14			0.13		7.1		15.4
Book value per common share		33.26			31.88			28.48		4.3		16.8
Average diluted shares outstanding (QTD)		10,233			10,212			10,148		0.2		0.8

UNITY BANCORP CAPITAL RATIOS
Total equity to total assets		11.61	%		10.92	%		10.79	%	6.3		7.6
Leverage ratio		12.71			12.50			11.94		1.7		6.4
Common Equity Tier 1 Capital Ratio		14.45			13.96			13.50		3.5		7.0
Risk-based Tier 1 Capital Ratio		14.88			14.39			13.98		3.4		6.4
Risk-based Total Capital Ratio		16.13			15.65			15.23		3.1		5.9

CREDIT QUALITY AND RATIOS
Nonaccrual assets	$	20,514		$	15,840		$	15,879		29.5		29.2
QTD annualized net (chargeoffs) to QTD average loans		(0.03)	%		(0.06)	%		(0.02)	%
Allowance for credit losses to total loans		1.23			1.22			1.22
Nonaccrual loans to total loans		0.83			0.66			0.59
Nonaccrual assets to total assets		0.71			0.54			0.60
** 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


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

ASSETS
Cash and due from banks	$	20,860	$	20,206	$	28,892	3.2	%	(27.8)	%
Interest-bearing deposits		182,626		160,232		165,609	14.0		10.3
Cash and cash equivalents		203,486		180,438		194,501	12.8		4.6
Securities:
Debt securities available for sale, at market value, net of valuation allowance		82,063		93,884		97,651	(12.6)		(16.0)
Debt securities held to maturity, at book value		36,505		41,294		36,225	(11.6)		0.8
Equity securities, at market value		12,684		9,850		9,836	28.8		29.0
Total securities		131,252		145,028		143,712	(9.5)		(8.7)
Loans:
Loans held for sale		15,421		12,163		14,621	26.8		5.5
SBA loans held for investment		37,537		38,309		39,497	(2.0)		(5.0)
Commercial loans		1,582,608		1,411,629		1,368,763	12.1		15.6
Residential mortgage loans		676,862		630,927		623,529	7.3		8.6
Consumer loans		82,857		76,711		72,291	8.0		14.6
Residential construction loans		73,242		90,918		98,692	(19.4)		(25.8)
Total loans		2,468,527		2,260,657		2,217,393	9.2		11.3
Allowance for credit losses		(30,245)		(26,788)		(27,002)	12.9		12.0
Net loans		2,438,282		2,233,869		2,190,391	9.2		11.3
Premises and equipment, net		18,439		18,778		18,857	(1.8)		(2.2)
Bank owned life insurance ("BOLI")		26,319		25,773		25,619	2.1		2.7
Deferred tax assets		15,022		14,106		14,517	6.5		3.5
Federal Home Loan Bank ("FHLB") stock		13,218		12,507		14,584	5.7		(9.4)
Accrued interest receivable		13,288		12,691		12,913	4.7		2.9
Goodwill		1,516		1,516		1,516	-		-
Prepaid expenses and other assets		15,543		9,311		18,709	66.9		(16.9)
Total assets	$	2,876,365	$	2,654,017	$	2,635,319	8.4	%	9.1	%

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing demand	$	447,510	$	440,803	$	423,968	1.5	%	5.6	%
Interest-bearing demand		362,449		321,780		325,264	12.6		11.4
Savings		535,560		491,175		524,607	9.0		2.1
Brokered deposits		235,122		217,931		214,679	7.9		9.5
Time deposits		686,843		628,624		557,619	9.3		23.2
Total deposits		2,267,484		2,100,313		2,046,137	8.0		10.8
Borrowed funds		231,707		220,504		266,798	5.1		(13.2)
Subordinated debentures		10,310		10,310		10,310	-		-
Accrued interest payable		1,790		1,702		1,765	5.2		1.4
Accrued expenses and other liabilities		31,051		25,605		26,052	21.3		19.2
Total liabilities		2,542,342		2,358,434		2,351,062	7.8		8.1
Shareholders' equity:
Common stock		105,320		103,936		102,886	1.3		2.4
Retained earnings		265,491		227,331		217,141	16.8		22.3
Treasury stock, at cost		(35,515)		(33,577)		(33,566)	5.8		5.8
Accumulated other comprehensive loss		(1,273)		(2,107)		(2,204)	(39.6)		(42.2)
Total shareholders' equity		334,023		295,583		284,257	13.0		17.5
Total liabilities and shareholders' equity	$	2,876,365	$	2,654,017	$	2,635,319	8.4	%	9.1	%

Shares issued		11,681		11,616		11,570
Shares outstanding		10,041		10,026		9,980
Treasury shares		1,640		1,590		1,590

*NM=Not meaningful

UNITY BANCORP, INC.

QTD CONSOLIDATED STATEMENTS OF INCOME


										September 30, 2025 vs.
	For the three months ended									June 30, 2025					September 30, 2024
(In thousands, except percentages and per share amounts)	September 30, 2025			June 30, 2025			September 30, 2024			$		%			$		%
INTEREST INCOME
Interest-bearing deposits	$	472		$	487		$	695		$	(15)		(3.1)	%	$	(223)		(32.1)	%
FHLB stock		121			130			164			(9)		(6.9)			(43)		(26.2)
Securities:
Taxable		1,735			1,735			1,904			-		-			(169)		(8.9)
Tax-exempt		18			17			17			1		5.9			1		5.9
Total securities		1,753			1,752			1,921			1		0.1			(168)		(8.7)
Loans:
SBA loans		964			856			1,159			108		12.6			(195)		(16.8)
Commercial loans		27,197			25,736			22,283			1,461		5.7			4,914		22.1
Residential mortgage loans		10,749			10,390			9,657			359		3.5			1,092		11.3
Consumer loans		1,469			1,491			1,436			(22)		(1.5)			33		2.3
Residential construction loans		1,636			1,758			2,235			(122)		(6.9)			(599)		(26.8)
Total loans		42,015			40,231			36,770			1,784		4.4			5,245		14.3
Total interest income		44,361			42,600			39,550			1,761		4.1			4,811		12.2
INTEREST EXPENSE
Interest-bearing demand deposits		1,998			1,898			1,802			100		5.3			196		10.9
Savings deposits		3,177			2,718			3,605			459		16.9			(428)		(11.9)
Brokered deposits		2,003			1,786			2,039			217		12.2			(36)		(1.8)
Time deposits		6,247			6,560			6,186			(313)		(4.8)			61		1.0
Borrowed funds and subordinated debentures		1,080			1,081			1,062			(1)		(0.1)			18		1.7
Total interest expense		14,505			14,043			14,694			462		3.3			(189)		(1.3)
Net interest income		29,856			28,557			24,856			1,299		4.5			5,000		20.1
Provision for credit losses, loans		1,409			1,725			1,029			(316)		(18.3)			380		36.9
(Release) Provision for credit losses, off-balance sheet		(80)			136			51			(216)		*NM			(131)		*NM
Release of credit losses, securities		(787)			(2,036)			-			1,249		61.3			(787)		*NM
Net interest income after provision for credit losses		29,314			28,732			23,776			582		2.0			5,538		23.3
NONINTEREST INCOME
Branch fee income		450			465			420			(15)		(3.2)			30		7.1
Service and loan fee income		607			536			753			71		13.2			(146)		(19.4)
Gain on sale of SBA loans held for sale, net		238			163			70			75		46.0			168		240.0
Gain on sale of mortgage loans, net		582			435			549			147		33.8			33		6.0
BOLI income		211			183			135			28		15.3			76		56.3
Net securities gains		475			3,600			499			(3,125)		(86.8)			(24)		(4.8)
Other income		404			433			377			(29)		(6.7)			27		7.2
Total noninterest income		2,967			5,815			2,803			(2,848)		(49.0)			164		5.9
NONINTEREST EXPENSE
Compensation and benefits		8,430			8,160			7,274			270		3.3			1,156		15.9
Processing and communications		1,150			980			868			170		17.3			282		32.5
Occupancy		838			809			781			29		3.6			57		7.3
Furniture and equipment		838			787			803			51		6.5			35		4.4
Professional services		405			350			326			55		15.7			79		24.2
Advertising		456			456			465			-		-			(9)		(1.9)
Loan related expenses		151			265			223			(114)		(43.0)			(72)		(32.3)
Deposit insurance		320			313			245			7		2.2			75		30.6
Director fees		263			265			232			(2)		(0.8)			31		13.4
Other expenses		564			634			795			(70)		(11.0)			(231)		(29.1)
Total noninterest expense		13,415			13,019			12,012			396		3.0			1,403		11.7
Income before provision for income taxes		18,866			21,528			14,567			(2,662)		(12.4)			4,299		29.5
Provision for income taxes		4,476			5,037			3,662			(561)		(11.1)			814		22.2
Net income	$	14,390		$	16,491		$	10,905		$	(2,101)		(12.7)	%	$	3,485		32.0	%

Effective tax rate		23.7	%		23.4	%		25.1	%

Net income per common share - Basic	$	1.43		$	1.64		$	1.09
Net income per common share - Diluted		1.41			1.61			1.07

Weighted average common shares outstanding - Basic		10,036			10,033			9,978
Weighted average common shares outstanding - Diluted		10,233			10,212			10,148
*NM=Not meaningful

UNITY BANCORP, INC.

YTD CONSOLIDATED STATEMENTS OF INCOME



	For the nine months ended September 30,						Current YTD vs. Prior YTD
(In thousands, except percentages and per share amounts)	2025			2024			$		%
INTEREST INCOME
Interest-bearing deposits	$	1,291		$	1,549		$	(258)		(16.7)	%
FHLB stock		433			624			(191)		(30.6)
Securities:
Taxable		5,257			5,503			(246)		(4.5)
Tax-exempt		53			53			-		-
Total securities		5,310			5,556			(246)		(4.4)
Loans:
SBA loans		2,753			3,787			(1,034)		(27.3)
Commercial loans		77,192			64,273			12,919		20.1
Residential mortgage loans		31,086			28,192			2,894		10.3
Consumer loans		4,306			4,228			78		1.8
Residential construction loans		5,390			7,265			(1,875)		(25.8)
Total loans		120,727			107,745			12,982		12.0
Total interest income		127,761			115,474			12,287		10.6
INTEREST EXPENSE
Interest-bearing demand deposits		5,518			5,523			(5)		(0.1)
Savings deposits		8,488			10,097			(1,609)		(15.9)
Brokered deposits		5,575			6,516			(941)		(14.4)
Time deposits		19,222			16,718			2,504		15.0
Borrowed funds and subordinated debentures		3,294			4,499			(1,205)		(26.8)
Total interest expense		42,097			43,353			(1,256)		(2.9)
Net interest income		85,664			72,121			13,543		18.8
Provision for credit losses, loans		4,491			1,937			2,554		131.9
Provision for credit losses, off-balance sheet		16			66			(50)		(75.8)
(Release) Provision for credit losses, securities		(2,824)			646			(3,470)		(537.2)
Net interest income after provision for credit losses		83,981			69,472			14,509		20.9
NONINTEREST INCOME
Branch fee income		1,362			929			433		46.6
Service and loan fee income		2,007			1,677			330		19.7
Gain on sale of SBA loans held for sale, net		540			613			(73)		(11.9)
Gain on sale of mortgage loans, net		1,185			1,134			51		4.5
BOLI income		546			389			157		40.4
Net securities gains		4,026			573			*NM		*NM
Other income		1,217			1,238			(21)		(1.7)
Total noninterest income		10,883			6,553			4,330		66.1
NONINTEREST EXPENSE
Compensation and benefits		24,492			21,751			2,741		12.6
Processing and communications		3,116			2,615			501		19.2
Occupancy		2,527			2,394			133		5.6
Furniture and equipment		2,370			2,306			64		2.8
Professional services		1,118			1,167			(49)		(4.2)
Advertising		1,302			1,263			39		3.1
Loan related expenses		462			959			(497)		(51.8)
Deposit insurance		874			905			(31)		(3.4)
Director fees		1,022			709			313		44.1
Other expenses		1,758			2,055			(297)		(14.5)
Total noninterest expense		39,041			36,124			2,917		8.1
Income before provision for income taxes		55,823			39,901			15,922		39.9
Provision for income taxes		13,339			9,956			3,383		34.0
Net income	$	42,484		$	29,945		$	12,539		41.9	%

Effective tax rate		23.9	%		25.0	%

Net income per common share - Basic	$	4.23		$	2.98
Net income per common share - Diluted		4.15			2.94

Weighted average common shares outstanding - Basic		10,041			10,040
Weighted average common shares outstanding - Diluted		10,231			10,192
*NM=Not meaningful

UNITY BANCORP, INC.

QUARTER TO DATE NET INTEREST MARGIN


	For the three months ended
(Dollar amounts in thousands, interest amounts and	September 30, 2025							September 30, 2024
interest rates/yields on a fully tax-equivalent basis)	Average Balance		Interest		Rate/Yield			Average Balance		Interest		Rate/Yield
ASSETS
Interest-earning assets:
Interest-bearing deposits	$	42,014	$	472		4.46	%	$	50,232	$	695		5.50	%
FHLB stock		7,588		121		6.31			7,530		164		8.67
Securities:
Taxable		135,170		1,735		5.14			141,682		1,904		5.38
Tax-exempt		1,460		24		6.43			1,579		18		4.48
Total securities (A)		136,630		1,759		5.15			143,261		1,922		5.37
Loans:
SBA loans		46,001		964		8.38			53,987		1,159		8.59
Commercial loans		1,552,462		27,197		6.86			1,321,336		22,283		6.60
Residential mortgage loans		674,260		10,749		6.38			628,299		9,657		6.15
Consumer loans		82,851		1,469		6.94			70,740		1,436		7.94
Residential construction loans		68,056		1,636		9.41			99,865		2,235		8.76
Total loans (B)		2,423,630		42,015		6.78			2,174,227		36,770		6.62
Total interest-earning assets	$	2,609,862	$	44,367		6.74	%	$	2,375,250	$	39,551		6.62	%

Noninterest-earning assets:
Cash and due from banks		23,335							23,728
Allowance for credit losses		(29,641)							(26,406)
Other assets		98,914							93,000
Total noninterest-earning assets		92,608							90,322
Total assets	$	2,702,470						$	2,465,572

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits	$	363,353	$	1,998		2.18	%	$	320,256	$	1,802		2.24	%
Savings deposits		510,616		3,177		2.47			530,954		3,605		2.70
Brokered deposits		230,728		2,003		3.44			217,851		2,039		3.72
Time deposits		665,691		6,247		3.72			560,297		6,186		4.39
Total interest-bearing deposits		1,770,388		13,425		3.01			1,629,358		13,632		3.33
Borrowed funds and subordinated debentures		118,350		1,080		3.57			120,067		1,062		3.46
Total interest-bearing liabilities	$	1,888,738	$	14,505		3.05	%	$	1,749,425	$	14,694		3.34	%

Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		453,140							408,376
Other liabilities		32,741							28,761
Total noninterest-bearing liabilities		485,881							437,137
Total shareholders' equity		327,851							279,010
Total liabilities and shareholders' equity	$	2,702,470						$	2,465,572

Net interest spread			$	29,862		3.69	%			$	24,857		3.28	%
Tax-equivalent basis adjustment				(6)							(1)
Net interest income			$	29,856						$	24,856
Net interest margin						4.54	%						4.16	%

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

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

UNITY BANCORP, INC.

QUARTER TO DATE NET INTEREST MARGIN


	For the three months ended
(Dollar amounts in thousands, interest amounts and	September 30, 2025							June 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	$	42,014	$	472		4.46	%	$	43,985	$	487		4.44	%
FHLB stock		7,588		121		6.31			7,626		130		6.82
Securities:
Taxable		135,170		1,735		5.14			138,283		1,735		5.02
Tax-exempt		1,460		24		6.43			1,471		20		5.59
Total securities (A)		136,630		1,759		5.15			139,754		1,755		5.02
Loans:
SBA loans		46,001		964		8.38			48,646		856		7.04
Commercial loans		1,552,462		27,197		6.86			1,497,021		25,736		6.80
Residential mortgage loans		674,260		10,749		6.38			658,239		10,390		6.31
Consumer loans		82,851		1,469		6.94			82,265		1,491		7.17
Residential construction loans		68,056		1,636		9.41			72,525		1,758		9.59
Total loans (B)		2,423,630		42,015		6.78			2,358,696		40,231		6.75
Total interest-earning assets	$	2,609,862	$	44,367		6.74	%	$	2,550,061	$	42,603		6.70	%

Noninterest-earning assets:
Cash and due from banks		23,335							21,601
Allowance for credit losses		(29,641)							(28,067)
Other assets		98,914							95,195
Total noninterest-earning assets		92,608							88,729
Total assets	$	2,702,470						$	2,638,790

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits	$	363,353	$	1,998		2.18	%	$	354,353	$	1,898		2.15	%
Savings deposits		510,616		3,177		2.47			487,307		2,718		2.24
Brokered deposits		230,728		2,003		3.44			207,128		1,786		3.46
Time deposits		665,691		6,247		3.72			682,426		6,560		3.86
Total interest-bearing deposits		1,770,388		13,425		3.01			1,731,214		12,962		3.00
Borrowed funds and subordinated debentures		118,350		1,080		3.57			118,166		1,081		3.62
Total interest-bearing liabilities	$	1,888,738	$	14,505		3.05	%	$	1,849,380	$	14,043		3.05	%

Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		453,140							442,151
Other liabilities		32,741							34,464
Total noninterest-bearing liabilities		485,881							476,615
Total shareholders' equity		327,851							312,795
Total liabilities and shareholders' equity	$	2,702,470						$	2,638,790

Net interest spread			$	29,862		3.69	%			$	28,560		3.66	%
Tax-equivalent basis adjustment				(6)							(3)
Net interest income			$	29,856						$	28,557
Net interest margin						4.54	%						4.49	%

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

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

UNITY BANCORP, INC.

YTD NET INTEREST MARGIN


	For the nine months ended
(Dollar amounts in thousands, interest amounts and	September 30, 2025							September 30, 2024
interest rates/yields on a fully tax-equivalent basis)	Average Balance		Interest		Rate/Yield			Average Balance		Interest		Rate/Yield
ASSETS
Interest-earning assets:
Interest-bearing deposits	$	38,796	$	1,291		4.45	%	$	37,764	$	1,549		5.48	%
FHLB stock		7,558		433		7.65			8,822		624		9.45
Securities:
Taxable		138,739		5,257		5.05			139,029		5,503		5.28
Tax-exempt		1,508		62		5.51			1,603		56		4.50
Total securities (A)		140,247		5,319		5.06			140,632		5,559		5.27
Loans:
SBA loans		48,082		2,753		7.55			57,330		3,787		8.71
Commercial loans		1,499,213		77,192		6.79			1,301,303		64,273		6.49
Residential mortgage loans		657,540		31,086		6.30			626,286		28,192		6.00
Consumer loans		80,119		4,306		7.09			70,313		4,228		7.90
Residential construction loans		74,938		5,390		9.49			113,901		7,265		8.38
Total loans (B)		2,359,892		120,727		6.75			2,169,133		107,745		6.53
Total interest-earning assets	$	2,546,493	$	127,770		6.71	%	$	2,356,351	$	115,477		6.55	%

Noninterest-earning assets:
Cash and due from banks		22,684							23,499
Allowance for credit losses		(28,396)							(26,223)
Other assets		95,248							92,658
Total noninterest-earning assets		89,536							89,934
Total assets	$	2,636,029						$	2,446,285

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits	$	353,310	$	5,518		2.09	%	$	327,544	$	5,523		2.25	%
Savings deposits		497,715		8,488		2.28			512,969		10,097		2.63
Brokered deposits		217,187		5,575		3.43			229,862		6,516		3.79
Time deposits		662,119		19,222		3.88			520,448		16,718		4.29
Total interest-bearing deposits		1,730,331		38,803		3.00			1,590,823		38,854		3.26
Borrowed funds and subordinated debentures		118,548		3,294		3.66			150,278		4,499		3.93
Total interest-bearing liabilities	$	1,848,879	$	42,097		3.04	%	$	1,741,101	$	43,353		3.33	%

Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		440,388							404,471
Other liabilities		32,356							28,883
Total noninterest-bearing liabilities		472,744							433,354
Total shareholders' equity		314,406							271,830
Total liabilities and shareholders' equity	$	2,636,029						$	2,446,285

Net interest spread			$	85,673		3.67	%			$	72,124		3.22	%
Tax-equivalent basis adjustment				(9)							(3)
Net interest income			$	85,664						$	72,121
Net interest margin						4.50	%						4.09	%

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

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

UNITY BANCORP, INC.

QUARTERLY ALLOWANCE FOR CREDIT LOSSES AND ASSET QUALITY SCHEDULES


Amounts in thousands, except percentages	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024
ALLOWANCE FOR CREDIT LOSSES:
Balance, beginning of period	$	29,012		$	27,651		$	26,788		$	27,002		$	26,107
Provision for credit losses on loans		1,409			1,725			1,358			470			1,029
		30,421			29,376			28,146			27,472			27,136
Less: Chargeoffs
SBA loans		211			105			350			300			70
Commercial loans		-			100			2			350			46
Residential mortgage loans		85			282			130			150			-
Consumer loans		30			21			50			93			68
Residential construction loans		-			-			-			-			-
Total chargeoffs		326			508			532			893			184
Add: Recoveries
SBA loans		50			2			5			26			7
Commercial loans		92			102			5			171			9
Residential mortgage loans		-			-			-			-			-
Consumer loans		8			40			27			12			34
Residential construction loans		-			-			-			-			-
Total recoveries		150			144			37			209			50
Net chargeoffs		(176)			(364)			(495)			(684)			(134)
Balance, end of period	$	30,245		$	29,012		$	27,651		$	26,788		$	27,002

ASSET QUALITY INFORMATION:

Nonaccrual loans:
SBA loans	$	4,225		$	4,177		$	3,231		$	3,850		$	3,646
Commercial loans		4,006			3,512			4,821			2,974			3,674
Residential mortgage loans		11,174			7,980			8,622			5,711			5,053
Consumer loans		938			-			-			-			100
Residential construction loans		171			171			171			547			547
Total nonaccrual loans		20,514			15,840			16,845			13,082			13,020
Debt securities available for sale, net of valuation allowance		-			-			1,145			1,964			2,859
Nonaccrual assets		20,514			15,840			17,990			15,046			15,879

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

Nonaccrual loans to total loans		0.83	%		0.66	%		0.72	%		0.58	%		0.59	%
Nonaccrual assets to total assets		0.71			0.54			0.65			0.57			0.60

Allowance for credit losses to:
Total loans at quarter end		1.23	%		1.22	%		1.18	%		1.18	%		1.22	%
Total nonaccrual loans		147.44			183.16			164.15			204.77			207.39

UNITY BANCORP, INC.

QUARTERLY FINANCIAL DATA


(In thousands, except %'s, employee, office and per share amounts)	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024
SUMMARY OF INCOME:
Total interest income	$	44,361		$	42,600		$	40,801		$	40,264		$	39,550
Total interest expense		14,505			14,043			13,550			13,774			14,694
Net interest income		29,856			28,557			27,251			26,490			24,856
Provision (Release) for credit losses		542			(175)			1,317			1,300			1,080
Net interest income after provision for credit losses		29,314			28,732			25,934			25,190			23,776
Total noninterest income		2,967			5,815			2,101			1,916			2,803
Total noninterest expense		13,415			13,019			12,611			12,617			12,012
Income before provision for income taxes		18,866			21,528			15,424			14,489			14,567
Provision for income taxes		4,476			5,037			3,826			2,984			3,662
Net income	$	14,390		$	16,491		$	11,598		$	11,505		$	10,905

Net income per common share - Basic	$	1.43		$	1.64		$	1.15		$	1.15		$	1.09
Net income per common share - Diluted		1.41			1.61			1.13			1.13			1.07

COMMON SHARE DATA:
Market price per share	$	48.87		$	47.08		$	40.70		$	43.61		$	34.06
Dividends paid		0.15			0.14			0.14			0.13			0.13
Book value per common share		33.26			31.88			30.38			29.48			28.48

Weighted average common shares outstanding - Basic		10,036			10,033			10,054			10,002			9,978
Weighted average common shares outstanding - Diluted		10,233			10,212			10,247			10,204			10,148
Issued common shares		11,681			11,672			11,666			11,616			11,570
Outstanding common shares		10,041			10,032			10,076			10,026			9,980
Treasury shares		1,640			1,640			1,590			1,590			1,590

QUARTERLY PERFORMANCE RATIOS (ANNUALIZED):
Return on average assets		2.11	%		2.51	%		1.83	%		1.83	%		1.76	%
Return on average equity		17.41			21.15			15.56			15.77			15.55
Efficiency ratio**		41.47			42.31			42.89			44.44			44.23
Noninterest expense to average assets		1.97			1.98			1.99			2.01			1.94

BALANCE SHEET DATA:
Total assets	$	2,876,365		$	2,928,523		$	2,767,943		$	2,654,017		$	2,635,319
Total securities		131,252			139,348			142,092			145,028			143,712
Total loans		2,468,527			2,382,594			2,345,130			2,260,657			2,217,393
Allowance for credit losses		30,245			29,012			27,651			26,788			27,002
Total deposits		2,267,484			2,187,366			2,175,398			2,100,313			2,046,137
Total shareholders' equity		334,023			319,840			306,142			295,583			284,257

TAX EQUIVALENT YIELDS AND RATES:
Interest-earning assets		6.74	%		6.70	%		6.68	%		6.64	%		6.62	%
Interest-bearing liabilities		3.05			3.05			3.04			3.13			3.34
Net interest spread		3.69			3.66			3.64			3.51			3.28
Net interest margin		4.54			4.49			4.46			4.37			4.16

CREDIT QUALITY:
Nonaccrual assets	$	20,514		$	15,840		$	17,990		$	15,046		$	15,879
QTD annualized net chargeoffs to QTD average loans		(0.03)	%		(0.06)	%		(0.09)	%		(0.12)	%		(0.02)	%
Allowance for credit losses to total loans		1.23			1.22			1.18			1.18			1.22
Nonaccrual loans to total loans		0.83			0.66			0.72			0.58			0.59
Nonaccrual assets to total assets		0.71			0.54			0.65			0.57			0.60

UNITY BANCORP CAPITAL RATIOS:
Total equity to total assets		11.61	%		10.92	%		11.06	%		11.14	%		10.79	%
Leverage ratio		12.71			12.50			12.32			12.22			11.94
Common Equity Tier 1 Capital Ratio		14.45			13.96			13.87			13.90			13.50
Risk-based Tier 1 Capital Ratio		14.88			14.39			14.33			14.37			13.98
Risk-based Total Capital Ratio		16.13			15.65			15.58			15.62			15.23

Number of banking offices		22			21			21			21			21
Employee Full-Time Equivalent		238			237			227			224			222

** 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	September 30, 2025		%	December 31, 2024		%
Loans Held for Sale	$	15,421	0.6%	$	12,163	0.5%

SBA Loans		37,537	1.5%		38,309	1.7%

Commercial Loans
Commercial construction		117,111	4.7%		130,193	5.8%
SBA 504		41,870	1.7%		48,479	2.1%
Commercial & industrial		168,579	6.8%		147,186	6.5%
Commercial mortgage - owner occupied		640,837	26.0%		577,541	25.6%
Commercial mortgage - nonowner occupied		525,974	21.3%		428,600	19.0%
Other		88,237	3.6%		79,630	3.5%
Total Commercial Loans		1,582,608	64.1%		1,411,629	62.5%

Residential Mortgage Loans
Primary residence		471,747	19.1%		427,738	18.9%
Secondary residence		70,465	2.9%		65,063	2.9%
Investor property		134,650	5.4%		138,126	6.1%
Total Residential Mortgage Loans		676,862	27.4%		630,927	27.9%

Consumer Loans
Home equity		78,951	3.2%		73,223	3.2%
Consumer other		3,906	0.2%		3,488	0.2%
Total Consumer Loans		82,857	3.4%		76,711	3.4%

Residential Construction Loans		73,242	3.0%		90,918	4.0%

Total Gross Loans	$	2,468,527	100.0%	$	2,260,657	100.0%

UNITY BANCORP, INC.

QUARTERLY NON-GAAP RECONCILIATION


	For the three months ended
(In thousands, except percentages and per share amounts)	September 30, 2025			June 30, 2025			September 30, 2024
Adjusted net income:
Net income (GAAP)	$	14,390		$	16,491		$	10,905
Non-recurring transactions:
Less: Release of credit losses, securities		(787)			(2,036)			-
Less: Net securities gains, pertaining to one-time sales		-			(3,509)			-
Less: Net securities gains, unrealized		(218)			-			-
Add: Adjusted release (provision) for income taxes		238			1,301			-
Adjusted net income (non-GAAP)	$	13,623		$	12,247		$	10,905

Adjusted net income per common share:
Weighted average common shares outstanding - Basic		10,036			10,033			9,978
Weighted average common shares outstanding - Diluted		10,233			10,212			10,148

Net income per common share - Basic (GAAP)	$	1.43		$	1.64		$	1.09
Net income per common share - Diluted (GAAP)		1.41			1.61			1.07

Adjusted net income per common share - Basic (non-GAAP)	$	1.36		$	1.22		$
Adjusted net income per common share - Diluted (non-GAAP)		1.33			1.20

Adjusted return on average assets:
Total QTD average assets		2,702,470			2,638,790			2,465,572

Return on average assets (GAAP)		2.11	%		2.51	%		1.76	%
Adjusted return on average assets (non-GAAP)		2.00			1.86

Adjusted return on average equity:
Total QTD average equity		327,851			312,795			279,010

Return on average equity (GAAP)		17.41	%		21.15	%		15.55	%
Adjusted return on average equity (non-GAAP)		16.49			15.70