Unity Bancorp reports $17.38 million net income for Q3 2026

ITEM 1 Co nsolidated Financial Statements (Unaudited)

Unity Bancorp, Inc.

Consolidated Bala nce Sheets

(Unaudited)

(In thousands)

ASSETS

Cash and due from banks

$

25,496

$

19,841

Interest-bearing deposits

204,644

196,678

Cash and cash equivalents

230,140

216,519

Securities:

Debt securities available for sale ("AFS"), at fair value (amortized cost of $ 73,573 and $ 72,474 at September 30, 2026 and December 31, 2025, respectively)

71,575

70,870

Debt securities held to maturity ("HTM"), at amortized cost

37,780

36,576

Equity securities with readily determinable fair values

13,433

16,569

Total securities

122,788

124,015

Loans:

Loans held for sale

7,589

9,490

SBA loans held for investment

33,272

34,259

Commercial loans

1,717,151

1,518,032

Commercial construction loans

138,776

147,215

Residential mortgage loans

672,472

677,221

Consumer loans

102,894

85,219

Residential construction loans

108,124

73,277

Total loans

2,780,278

2,544,713

Allowance for credit losses

( 35,610

)

( 32,342

)

Net loans

2,744,668

2,512,371

Premises and equipment, net

17,870

18,022

Bank owned life insurance ("BOLI")

27,186

26,547

Deferred tax assets, net

16,578

14,640

Federal Home Loan Bank ("FHLB") stock

14,512

14,314

Accrued interest receivable

13,702

12,896

Goodwill

1,516

1,516

Other real estate owned ("OREO")

1,472

1,472

Prepaid expenses and other assets

60,065

24,340

Total assets

$

3,250,497

$

2,966,652

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Deposits:

Noninterest-bearing demand

$

493,873

$

465,596

Interest-bearing demand

463,036

369,131

Savings

631,112

535,044

Brokered deposits

261,322

274,203

Time deposits

710,155

680,087

Total deposits

2,559,498

2,324,061

Borrowed funds

251,098

255,774

Subordinated debentures

10,310

10,310

Accrued interest payable

1,902

2,138

Accrued expenses and other liabilities

39,216

28,738

Total liabilities

2,862,024

2,621,021

Shareholders' equity:

Preferred Stock

—

—

Common stock

107,910

105,892

Retained earnings

285,152

243,935

Treasury stock

( 3,425

)

( 3,101

)

Accumulated other comprehensive loss

( 1,164

)

( 1,095

)

Total shareholders' equity

388,473

345,631

Total liabilities and shareholders' equity

$

3,250,497

$

2,966,652

Common shares at period end

Shares issued

10,141

10,048

Shares outstanding

10,068

9,982

Treasury shares

73

66

The accompanying notes to the Consolidated Financial Statements are an integral part of these statements.¹

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Table of Contents

Unity Bancorp, Inc.

Consolidated Statem ents of Income

(Unaudited)

For the three months ended September 30,

For the nine months ended September 30,

(In thousands, except per share amounts)

2026

2025

2026

2025

INTEREST INCOME

Interest-bearing deposits

$

639

$

472

$

1,652

$

1,291

FHLB stock

105

121

379

433

Securities:

Taxable

1,405

1,735

4,205

5,257

Tax-exempt

27

18

69

53

Total securities

1,432

1,753

4,274

5,310

Loans:

SBA loans

755

964

2,439

2,753

Commercial loans

29,044

24,853

80,568

69,518

Commercial construction loans

2,781

2,344

9,165

7,674

Residential mortgage loans

11,017

10,749

32,341

31,086

Consumer loans

1,901

1,469

4,797

4,306

Residential construction loans

2,318

1,636

6,190

5,390

Total loans

47,816

42,015

135,500

120,727

Total interest income

49,992

44,361

141,805

127,761

INTEREST EXPENSE

Interest-bearing demand deposits

2,360

1,998

6,354

5,518

Savings deposits

3,669

3,177

10,120

8,488

Brokered deposits

2,412

2,003

6,925

5,575

Time deposits

6,424

6,247

18,834

19,222

Borrowed funds and subordinated debentures

836

1,080

2,724

3,294

Total interest expense

15,701

14,505

44,957

42,097

Net interest income

34,291

29,856

96,848

85,664

Provision for credit losses, loans

941

1,409

3,024

4,491

Provision for (release of) credit losses, off-balance sheet

104

( 80

)

236

16

Release of credit losses, securities

—

( 787

)

—

( 2,824

)

Net interest income after provision for credit losses

33,246

29,314

93,588

83,981

NONINTEREST INCOME

Branch fee income

635

450

1,736

1,362

Service and loan fee income

627

607

2,197

2,007

Gain on sale of SBA loans held for sale, net

252

238

892

540

Gain on sale of mortgage loans, net

428

582

1,333

1,185

BOLI income

209

211

639

546

Net security (losses) gains

( 248

)

475

( 973

)

4,026

Other income

456

404

1,332

1,217

Total noninterest income

2,359

2,967

7,156

10,883

NONINTEREST EXPENSE

Compensation and benefits

9,433

8,430

26,775

24,492

Processing and communications

1,325

1,150

3,602

3,116

Occupancy

971

838

2,799

2,527

Furniture and equipment

852

838

2,398

2,370

Professional services

425

405

1,369

1,118

Advertising

431

456

1,267

1,302

Loan related expenses

802

151

1,671

462

Deposit insurance

330

320

930

874

Director fees

418

263

948

1,022

Other expenses

611

564

1,840

1,758

Total noninterest expense

15,598

13,415

43,599

39,041

Income before provision for income taxes

20,007

18,866

57,145

55,823

Provision for income taxes

2,630

4,476

11,008

13,339

Net income²

$²

17,377²

$

14,390

$

46,137

$

42,484

Net income per common share – Basic

$

1.73

$

1.43

$

4.60

$

4.23

Net income per common share – Diluted

$

1.70

$

1.41

$

4.52

$

4.15

Weighted average common shares outstanding – Basic

10,058

10,036

10,037

10,041

Weighted average common shares outstanding – Diluted

10,233

10,233

10,218

10,231

The accompanying notes to the Consolidated Financial Statements are an integral part of these statements.

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Table of Contents

Unity Bancorp, Inc.

Consolidated Statem ents of Comprehensive Income

(Unaudited)

For the three months ended

Income tax

Income tax

Before tax expense

Net of tax

Before tax expense

Net of tax

(In thousands) amount (benefit) amount amount (benefit) amount

Net income

$

20,007

$

2,630

$

17,377

$

18,866

$

4,476

$

14,390

Other comprehensive income before reclassifications

Debt securities available for sale:

Unrealized holding (losses) gains on debt securities arising during the period

( 405

)

( 98

)

( 307

)

891

219

672

Less: reclassification adjustment on debt securities included in net income

—

—

—

—

—

—

Total unrealized (losses) gains on debt s