Form 8-K
8-K — UNITY BANCORP INC /NJ/
Accession: 0000920427-26-000028
Filed: 2026-04-14
Period: 2026-04-14
CIK: 0000920427
SIC: 6022 (STATE COMMERCIAL BANKS)
Item: Results of Operations and Financial Condition
Item: Financial Statements and Exhibits
Documents
8-K — unty-20260414x8k.htm (Primary)
EX-99.1 (unty-20260414xex99d1.htm)
GRAPHIC (unty-20260414x8k003.jpg)
GRAPHIC (unty-20260414xex99d1001.jpg)
XML — IDEA: XBRL DOCUMENT (R1.htm)
8-K
8-K (Primary)
Filename: unty-20260414x8k.htm · Sequence: 1
UNITY BANCORP, INC._April 14, 2026
0000920427false00009204272026-04-142026-04-14
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
April 14, 2026
Date of Report (Date of earliest event reported)
UNITY BANCORP, INC.
(Exact Name of Registrant as Specified in its Charter)
New Jersey
(State or Other Jurisdiction of Incorporation)
1-12431
22-3282551
(Commission File Number)
(IRS Employer Identification No.)
64 Old Highway 22
Clinton, NJ 08809
(Address of Principal Executive Office)
(908) 730-7630
(Registrant’s Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common stock
UNTY
NASDAQ
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operation and Financial Condition
The Registrant issued a press release on April 14, 2026 announcing results for the three months ended March 31, 2026, the full text of which is incorporated by reference to this Item.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit 99.1
Press release issued by the Registrant on April 14, 2026.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
October 13, 2023
UNITY BANCORP, INC.
(Registrant)
Date: April 14, 2026
By:
/s/ James Davies
James Davies
First Senior Vice President & Chief Financial Officer
EX-99.1
EX-99.1
Filename: unty-20260414xex99d1.htm · Sequence: 2
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.
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v3.26.1
Document and Entity Information
Apr. 14, 2026
Cover [Abstract]
Document Type
8-K
Document Period End Date
Apr. 14, 2026
Securities Act File Number
1-12431
Entity Registrant Name
UNITY BANCORP, INC.
Entity Incorporation, State or Country Code
NJ
Entity Tax Identification Number
22-3282551
Entity Address, Address Line One
64 Old Highway 22
Entity Address, City or Town
Clinton
Entity Address, State or Province
NJ
Entity Address, Postal Zip Code
08809
City Area Code
908
Local Phone Number
730-7630
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false
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Trading Symbol
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Entity Emerging Growth Company
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Data Type:
xbrli:booleanItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Commission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
+ References
No definition available.
+ Details
Name:
dei_EntityFileNumber
Namespace Prefix:
dei_
Data Type:
dei:fileNumberItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Two-character EDGAR code representing the state or country of incorporation.
+ References
No definition available.
+ Details
Name:
dei_EntityIncorporationStateCountryCode
Namespace Prefix:
dei_
Data Type:
dei:edgarStateCountryItemType
Balance Type:
na
Period Type:
duration
X
- Definition
The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
+ Details
Name:
dei_EntityRegistrantName
Namespace Prefix:
dei_
Data Type:
xbrli:normalizedStringItemType
Balance Type:
na
Period Type:
duration
X
- Definition
The Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
+ Details
Name:
dei_EntityTaxIdentificationNumber
Namespace Prefix:
dei_
Data Type:
dei:employerIdItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Local phone number for entity.
+ References
No definition available.
+ Details
Name:
dei_LocalPhoneNumber
Namespace Prefix:
dei_
Data Type:
xbrli:normalizedStringItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 13e
-Subsection 4c
+ Details
Name:
dei_PreCommencementIssuerTenderOffer
Namespace Prefix:
dei_
Data Type:
xbrli:booleanItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14d
-Subsection 2b
+ Details
Name:
dei_PreCommencementTenderOffer
Namespace Prefix:
dei_
Data Type:
xbrli:booleanItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Title of a 12(b) registered security.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b
+ Details
Name:
dei_Security12bTitle
Namespace Prefix:
dei_
Data Type:
dei:securityTitleItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Name of the Exchange on which a security is registered.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection d1-1
+ Details
Name:
dei_SecurityExchangeName
Namespace Prefix:
dei_
Data Type:
dei:edgarExchangeCodeItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14a
-Subsection 12
+ Details
Name:
dei_SolicitingMaterial
Namespace Prefix:
dei_
Data Type:
xbrli:booleanItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Trading symbol of an instrument as listed on an exchange.
+ References
No definition available.
+ Details
Name:
dei_TradingSymbol
Namespace Prefix:
dei_
Data Type:
dei:tradingSymbolItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Securities Act
-Number 230
-Section 425
+ Details
Name:
dei_WrittenCommunications
Namespace Prefix:
dei_
Data Type:
xbrli:booleanItemType
Balance Type:
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Period Type:
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