EX-99.1

Dil. EPS
$1.70

$0.28 Q/Q, GAAP

$0.09 Q/Q, Core*

ROE
18.11%

225 bps Q/Q, GAAP

25 bps Q/Q, Core*

NIM
4.67%

11 bps Q/Q, Core* & GAAP

ROA
2.29%

28 bps Q/Q, GAAP

3 bps Q/Q, Core*

Exhibit 99.1


For Immediate Release	News Media & Financial Analyst Contact:
Unity Bancorp, Inc. (NASDAQ: UNTY)	James Davies, FSVP & CFO
October 13, 2026	(908) 713-4330

Unity Bancorp Reports Quarterly Earnings of $17.4 Million

*Core earnings is a non-GAAP financial measure. Refer to the Quarterly

Non-GAAP/Core Reconciliation

James A. Hughes, CEO, commented on the financial results:

“We are pleased to report another strong quarter for Unity, highlighted by net income of $17.4 million, or $1.70 per diluted share, and continued momentum across our core banking franchise. Loan and deposit growth remained robust, net interest income increased, net interest margin expanded, and asset quality improved meaningfully during the quarter. These results reflect the ongoing success of our relationship-driven banking model and the strength of the markets we serve.

During the quarter, we also completed the purchase of transferable federal investment tax credits, which reduced our tax expense and provided a $2.5 million benefit to earnings. Importantly, even excluding this one-time benefit, our underlying financial performance remained strong and was supported by healthy customer activity, disciplined balance sheet management, and steady execution across the organization. While interest rate expectations have shifted and deposit gathering remains competitive, we continue to see attractive growth opportunities throughout our markets. Credit quality trends are encouraging, our capital and liquidity positions remain strong, and customer engagement levels continue to support healthy loan and deposit production.

Looking ahead, we are confident in Unity's long-term prospects as we prepare for the planned leadership transition next year to our President, George Boyan. Mr. Boyan has been deeply involved in every aspect of our strategic and operational execution, and I am confident that Unity is well-positioned for continued success under his leadership. With a strong balance sheet, a talented team, and a growing customer base, we remain focused on delivering sustainable growth and long-term value for our shareholders.”

Clinton, NJ -- Unity Bancorp, Inc. (NASDAQ: UNTY, the "Company"), parent company of Unity Bank (the "Bank"), reported net income of $17.4 million, or $1.70 per diluted share, for the quarter ended September 30, 2026, compared to net income of $14.5 million, or $1.42 per diluted share for the quarter ended June 30, 2026. For the nine months ended September 30, 2026, Unity Bancorp, Inc. reported net income of $46.1 million, or $4.52 per diluted share, compared to net income of $42.5 million, or $4.15 per diluted share, for the nine months ended September 30, 2025.

Quarterly Earnings Highlights

•

Net interest income, the primary driver of earnings, was $34.3 million for the quarter ended September 30, 2026, an increase of $2.5 million, as compared to $31.8 million for the quarter ended June 30, 2026. Net interest margin increased 11 basis points to 4.67% for the quarter ended September 30, 2026, compared to the quarter ended June 30, 2026. The increase in net interest income was primarily driven by higher earning asset yields resulting from strong loan originations and the repricing of existing loans. In addition, the Company benefited from successful recovery efforts, which reduced nonaccrual balances and resulted in increased recoveries during the quarter.

•

The provision for credit losses on loans was $0.9 million for the quarter ended September 30, 2026, as compared to $1.0 million for the quarter ended June 30, 2026. The provision in the current quarter was primarily driven by loan growth.

•

Noninterest income was $2.4 million for the quarter ended September 30, 2026, compared to $1.9 million for the quarter ended June 30, 2026. The $0.5 million increase was primarily due to a decrease in the amount of recognized unrealized losses.

•

Noninterest expense was $15.6 million for the quarter ended September 30, 2026, compared to $13.9 million for the quarter ended June 30, 2026. The increase was primarily due to increased compensation and benefits, loan related expenses, processing and communication and director fees.

The increase in compensation and benefits expense was driven by an amendment to the Unity Bancorp, Inc. Supplemental Executive Retirement Plan resulting in a one-time pre-tax expense of $769 thousand as previously disclosed in the Form 8-K filed on September 23, 2026.

The increase in loan related expenses was driven by a transaction regarding the previously mentioned $15.5 million commercial real estate relationship, which migrated to nonaccrual status in December 2025. Associated with this transfer, the Company incurred a probable broker fee expense of $405 thousand.

The increase in director fees was driven by the accelerated vesting of restricted stock upon the passing of former Director Robert ("Bobby") H. Dallas II in accordance with our equity incentive plan, resulting in an expense of $133 thousand.

•

The effective tax rate was 13.1% for the quarter ended September 30, 2026, compared to 22.4% for the quarter ended June 30, 2026. During the third quarter of 2026, Unity purchased $27.6 million of transferable federal investment tax credits and $0.6 million of state tax credits, resulting in $2.6 million of tax savings. Furthermore, during the second quarter of 2026, Unity purchased $2.6 million of state tax credits, resulting in $0.2 million of tax savings.

Balance Sheet Highlights

•

Total gross loans increased $235.6 million, or 9.3%, from December 31, 2025, primarily due to increases in the commercial, residential construction and consumer loan categories.

•

As of September 30, 2026, the allowance for credit losses as a percentage of gross loans was 1.28%, compared to 1.27% as of December 31, 2025.

•

As of September 30, 2026, nonaccrual assets (including OREO) were $24.1 million, compared to $31.3 million as of December 31, 2025. The ratio of nonaccrual loans to total loans was 0.81% as of September 30, 2026. The ratio of nonaccrual assets to total assets was 0.74% as of September 30, 2026.

During the fourth quarter of 2025, a well secured $15.5 million commercial real estate relationship migrated to nonaccrual status. During the third quarter of 2026, the Company entered into a transaction involving this loan relationship and provided financing to the counterparty for approximately 80% of the transaction amount. As a result of the transaction and the $3.1 million of cash received, the Company reduced its reported nonaccrual loans by $3.1 million. This isolated relationship accounts for nearly half of nonaccrual assets.

•

As of September 30, 2026, total deposits increased $235.4 million, or 10.1%, from December 31, 2025. As of September 30, 2026, uninsured or uncollateralized deposits represented 21.5% of total deposits. The Company’s deposit composition as of September 30, 2026, consisted of 19.3% in noninterest bearing demand deposits, 19.5% in interest-bearing demand deposits, 24.6% in savings deposits and 36.6% in time deposits.

•

As of September 30, 2026, borrowed funds decreased $4.7 million from December 31, 2025. Borrowed funds were entirely comprised of borrowings from the FHLB.

•

Shareholders’ equity was $388.5 million as of September 30, 2026, compared to $345.6 million as of December 31, 2025. The $42.9 million increase was primarily driven by 2026 earnings, partially offset by dividend payments. During the nine months ended September 30, 2026, Unity Bancorp, Inc. repurchased 6,616 shares at a weighted average price of $49.01 per share.

•

Book value per common share was $38.59 as of September 30, 2026, compared to $34.63 as of December 31, 2025. This increase is primarily due to net income partially offset primarily by dividends.

•

Below is a summary of Unity Bancorp’s regulatory capital ratios. During the nine months ended September 30, 2026, risk-weighted assets increased $289.8 million driven by strong loan originations and robust loan pipelines.

The Leverage Ratio increased 50 basis points to 13.22% at September 30, 2026, compared to 12.72% at December 31, 2025.

The Common Equity Tier 1 Capital Ratio increased 1 basis point to 14.46% at September 30, 2026, compared to 14.45% at December 31, 2025.

The Tier 1 Capital Ratio decreased 3 basis points to 14.84% at September 30, 2026, compared to 14.87% at December 31, 2025.

The Total Capital Ratio decreased 3 basis points to 16.09% at September 30, 2026, compared to 16.12% at December 31, 2025.

•

At September 30, 2026, the Company held $230.1 million of cash and cash equivalents. The Company also maintained approximately $458.9 million of funding available from various sources, including the FHLB, FRB Discount Window and other lines of credit. Total available funding plus cash on hand represented 125.3% of uninsured or uncollateralized deposits.

Other Highlights

•

In September 2026, the Company announced the upcoming retirement of CEO James A. Hughes effective March 31, 2027, following more than 26 years of dedicated service. President George Boyan will succeed Mr. Hughes as CEO effective April 1, 2027 and will continue to serve as President of the Company and the Bank.

•

In August 2026, the Company announced a 6% increase in its third quarter cash dividend to $0.17 per common share. This is in addition to the 8% increase announced in the first quarter.

•

In August 2026, the Company was approved by the New Jersey Economic Development Authority Board as a participant in the NJEDA Premier Lender Program, joining a select group of financial institutions committed to advancing small business growth throughout the state.

Unity Bancorp, Inc. is a financial services organization headquartered in Clinton, New Jersey, with approximately $3.3 billion in assets and $2.6 billion in deposits. Unity Bank, the Company’s wholly owned subsidiary, provides financial services to retail, corporate and small business customers through its robust branch network located in Bergen, Hunterdon, Middlesex, Morris, Ocean, Somerset, Union and Warren Counties in New Jersey and Northampton County in Pennsylvania. For additional information about Unity, visit our website at www.unitybank.com , or call 800-618-BANK.

This news release contains certain forward-looking statements, either expressed or implied, which are provided to assist the reader in understanding anticipated future financial performance. These statements may be identified by use of the words “believe”, “expect”, “intend”, “anticipate”, “estimate”, “project” or similar expressions. These statements involve certain risks, uncertainties, estimates and assumptions made by management, which are subject to factors beyond the Company’s control that could impede its ability to achieve these goals. These factors include those items included in our Annual Report on Form 10-K under the heading “Item 1A. Risk Factors” as amended or supplemented by our subsequent filings with the SEC, as well as general economic conditions, trends in interest rates, the ability of our borrowers to repay their loans, our ability to manage and reduce the level of our nonperforming assets, results of regulatory exams, the impact of any health crisis or national disasters on the Bank, the impact of global military conflicts, its employees and customers, and the impact of uncertain or changing political conditions or any current or future federal government shutdown and uncertainty regarding the federal government’s debt limit or changes in fiscal, monetary, trade or regulatory policy, among other factors.

You should not place undue reliance on any forward-looking statements. These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.

UNITY BANCORP, INC.

SUMMARY FINANCIAL HIGHLIGHTS


										Sept. 30, 2026 vs.
(In thousands, except percentages and per										June 30, 2026			Sept. 30, 2025
share amounts)	Sept. 30, 2026			June 30, 2026			Sept. 30, 2025			%			%
BALANCE SHEET DATA
Total assets	$	3,250,497		$	3,194,313		$	2,876,365			1.8	%		13.0	%
Total deposits		2,559,498			2,462,549			2,267,484			3.9			12.9
Total gross loans		2,780,278			2,682,494			2,468,527			3.6			12.6
Total securities		122,788			119,300			131,252			2.9			(6.4	)
Total shareholders' equity		388,473			371,813			334,023			4.5			16.3
Allowance for credit losses		35,610			34,551			30,245			3.1			17.7

FINANCIAL DATA - QUARTER TO DATE
Income before provision for income taxes	$	20,007		$	18,652		$	18,866			7.3			6.0
Provision for income taxes		2,630			4,180			4,476			(37.1	)		(41.2	)
Net income	$	17,377		$	14,472		$	14,390			20.1			20.8

Net income per common share - Basic	$	1.73		$	1.44		$	1.43			20.1			21.0
Net income per common share - Diluted		1.70			1.42			1.41			19.7			20.6

PERFORMANCE RATIOS - QUARTER TO DATE (ANNUALIZED)
Return on average assets		2.29	%		2.01	%		2.11	%
Return on average equity		18.11			15.86			17.41
Efficiency ratio**		42.28			40.50			41.47
Cost of funds		2.39			2.38			2.46
Net interest margin		4.67			4.56			4.54
Noninterest expense to average assets		2.06			1.93			1.97

FINANCIAL DATA - YEAR TO DATE
Income before provision for income taxes	$	57,145					$	55,823						2.4
Provision for income taxes		11,008						13,339						(17.5	)
Net income	$	46,137					$	42,484						8.6

Net income per common share - Basic	$	4.60					$	4.23						8.7
Net income per common share - Diluted		4.52						4.15						8.9

PERFORMANCE RATIOS - YEAR TO DATE
Return on average assets		2.12	%					2.15	%
Return on average equity		16.81						18.07
Efficiency ratio**		41.53						42.20
Cost of funds		2.38						2.46
Net interest margin		4.59						4.50
Noninterest expense to average assets		2.00						1.98

SHARE INFORMATION
Market price per share	$	54.22		$	58.69		$	48.87			(7.6	)		10.9
Dividends paid (QTD)		0.17			0.16			0.15			6.3			13.3
Book value per common share		38.59			37.02			33.26			4.2			16.0
Average diluted shares outstanding (QTD)		10,233			10,221			10,233			0.1			-

UNITY BANCORP CAPITAL RATIOS
Total equity to total assets		11.95	%		11.64	%		11.61	%		2.7			2.9
Leverage ratio		13.22			13.17			12.71			0.4			3.6
Common Equity Tier 1 Capital Ratio		14.46			14.19			14.45			1.9			(1.8	)
Risk-based Tier 1 Capital Ratio		14.84			14.57			14.88			1.9			(2.1	)
Risk-based Total Capital Ratio		16.09			15.82			16.13			1.7			(1.9	)

CREDIT QUALITY AND RATIOS
Nonaccrual assets		24,076			34,489			20,514			(30.2	)		17.4
QTD annualized net recoveries (chargeoffs) to QTD average loans		0.02	%		0.03	%		(0.03	)%
Allowance for credit losses to total loans		1.28			1.29			1.23
Nonaccrual loans to total loans		0.81			1.23			0.83
Nonaccrual assets to total assets		0.74			1.08			0.71
** The efficiency ratio is a non-GAAP measure, calculated based on the noninterest expense divided by the sum of net interest income plus non interest income, excluding net gains and losses on securities.

UNITY BANCORP, INC.

QUARTERLY BALANCE SHEETS


										Sept. 30, 2026 vs.
										Dec. 31, 2025				Sept. 30, 2025
(In thousands, except percentages)	Sept. 30, 2026			Dec. 31, 2025			Sept. 30, 2025			%				%
ASSETS
Cash and due from banks	$	25,496		$	19,841		$	20,860			28.5		%		22.2		%
Interest-bearing deposits		204,644			196,678			182,626			4.1				12.1
Cash and cash equivalents		230,140			216,519			203,486			6.3				13.1
Securities:
Debt securities available for sale, at market value		71,575			70,870			82,063			1.0				(12.8	)
Debt securities held to maturity, at book value		37,780			36,576			36,505			3.3				3.5
Equity securities, at market value		13,433			16,569			12,684			(18.9	)			5.9
Total securities		122,788			124,015			131,252			(1.0	)			(6.4	)
Loans:
Loans held for sale		7,589			9,490			15,421			(20.0	)			(50.8	)
SBA loans held for investment		33,272			34,259			37,537			(2.9	)			(11.4	)
Commercial loans		1,717,151			1,518,032			1,465,497			13.1				17.2
Commercial construction loans		138,776			147,215			117,111			(5.7	)			18.5
Residential mortgage loans		672,472			677,221			676,862			(0.7	)			(0.6	)
Consumer loans		102,894			85,219			82,857			20.7				24.2
Residential construction loans		108,124			73,277			73,242			47.6				47.6
Total loans		2,780,278			2,544,713			2,468,527			9.3				12.6
Allowance for credit losses		(35,610	)		(32,342	)		(30,245	)		10.1				17.7
Net loans		2,744,668			2,512,371			2,438,282			9.2				12.6
Premises and equipment, net		17,870			18,022			18,439			(0.8	)			(3.1	)
Bank owned life insurance ("BOLI")		27,186			26,547			26,319			2.4				3.3
Deferred tax assets		16,578			14,640			15,022			13.2				10.4
Federal Home Loan Bank ("FHLB") stock		14,512			14,314			13,218			1.4				9.8
Accrued interest receivable		13,702			12,896			13,288			6.3				3.1
Goodwill		1,516			1,516			1,516			—				—
Other real estate owned ("OREO")		1,472			1,472			—			—			*NM
Prepaid expenses and other assets		60,065			24,340			15,543			146.8				286.4
Total assets	$	3,250,497		$	2,966,652		$	2,876,365			9.6		%		13.0		%

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing demand	$	493,873		$	465,596		$	447,510			6.1		%		10.4		%
Interest-bearing demand		463,036			369,131			362,449			25.4				27.8
Savings		631,112			535,044			535,560			18.0				17.8
Brokered deposits		261,322			274,203			235,122			(4.7	)			11.1
Time deposits		710,155			680,087			686,843			4.4				3.4
Total deposits		2,559,498			2,324,061			2,267,484			10.1				12.9
Borrowed funds		251,098			255,774			231,707			(1.8	)			8.4
Subordinated debentures		10,310			10,310			10,310			—				—
Accrued interest payable		1,902			2,138			1,790			(11.0	)			6.3
Accrued expenses and other liabilities		39,216			28,738			31,051			36.5				26.3
Total liabilities		2,862,024			2,621,021			2,542,342			9.2				12.6
Shareholders' equity:
Common stock		107,910			105,892			105,320			1.9				2.5
Retained earnings		285,152			243,935			265,491			16.9				7.4
Treasury stock, at cost		(3,425	)		(3,101	)		(35,515	)		(10.4	)			(90.4	)
Accumulated other comprehensive loss		(1,164	)		(1,095	)		(1,273	)		6.3				(8.6	)
Total shareholders' equity		388,473			345,631			334,023			12.4				16.3
Total liabilities and shareholders' equity	$	3,250,497		$	2,966,652		$	2,876,365			9.6		%		13.0		%

Shares issued		10,141			10,048			11,681
Shares outstanding		10,068			9,982			10,041
Treasury shares		73			66			1,640

*NM=Not meaningful

UNITY BANCORP, INC.

QTD CONSOLIDATED STATEMENTS OF INCOME


													Sept. 30, 2026 vs.
	For the three months ended												June 30, 2026							Sept. 30, 2025
(In thousands, except percentages and per share amounts)	Sept. 30, 2026				June 30, 2026				Sept. 30, 2025				$			%				$			%
INTEREST INCOME
Interest-bearing deposits	$	639			$	455			$	472			$	184			40.4		%	$	167			35.4		%
FHLB stock		105				140				121				(35	)		(25.0	)			(16	)		(13.2	)
Securities:
Taxable		1,405				1,391				1,735				14			1.0				(330	)		(19.0	)
Tax-exempt		27				24				18				3			12.5				9			50.0
Total securities		1,432				1,415				1,753				17			1.2				(321	)		(18.3	)
Loans:
SBA loans		755				840				964				(85	)		(10.1	)			(209	)		(21.7	)
Commercial loans		29,044				26,509				24,853				2,535			9.6				4,191			16.9
Commercial construction loans		2,781				3,347				2,344				(566	)		(16.9	)			437			18.6
Residential mortgage loans		11,017				10,411				10,749				606			5.8				268			2.5
Consumer loans		1,901				1,471				1,469				430			29.2				432			29.4
Residential construction loans		2,318				2,047				1,636				271			13.2				682			41.7
Total loans		47,816				44,625				42,015				3,191			7.2				5,801			13.8
Total interest income		49,992				46,635				44,361				3,357			7.2				5,631			12.7
INTEREST EXPENSE
Interest-bearing demand deposits		2,360				2,084				1,998				276			13.2				362			18.1
Savings deposits		3,669				3,291				3,177				378			11.5				492			15.5
Brokered deposits		2,412				2,247				2,003				165			7.3				409			20.4
Time deposits		6,424				6,282				6,247				142			2.3				177			2.8
Borrowed funds and subordinated debentures		836				904				1,080				(68	)		(7.5	)			(244	)		(22.6	)
Total interest expense		15,701				14,808				14,505				893			6.0				1,196			8.2
Net interest income		34,291				31,827				29,856				2,464			7.7				4,435			14.9
Provision for credit losses, loans		941				1,040				1,409				(99	)		(9.5	)			(468	)		(33.2	)
Provision for (release of) credit losses, off-balance sheet		104				127				(80	)			(23	)		(18.1	)			184		*NM
Release of credit losses, securities		—				—				(787	)			—			—				787		*NM
Net interest income after provision for credit losses		33,246				30,660				29,314				2,586			8.4				3,932			13.4
NONINTEREST INCOME
Branch fee income		635				612				450				23			3.8				185			41.1
Service and loan fee income		627				657				607				(30	)		(4.6	)			20			3.3
Gain on sale of SBA loans held for sale, net		252				213				238				39			18.3				14			5.9
Gain on sale of mortgage loans, net		428				406				582				22			5.4				(154	)		(26.5	)
BOLI income		209				213				211				(4	)		(1.9	)			(2	)		(0.9	)
Net securities (losses) gains		(248	)			(643	)			475				395		*NM					(723	)	*NM
Other income		456				463				404				(7	)		(1.5	)			52			12.9
Total noninterest income		2,359				1,921				2,967				438			22.8				(608	)		(20.5	)
NONINTEREST EXPENSE
Compensation and benefits		9,433				8,669				8,430				764			8.8				1,003			11.9
Processing and communications		1,325				1,131				1,150				194			17.2				175			15.2
Occupancy		971				842				838				129			15.3				133			15.9
Furniture and equipment		852				831				838				21			2.5				14			1.7
Professional services		425				456				405				(31	)		(6.8	)			20			4.9
Advertising		431				442				456				(11	)		(2.5	)			(25	)		(5.5	)
Loan related expenses		802				396				151				406			102.5				651			431.1
Deposit insurance		330				300				320				30			10.0				10			3.1
Director fees		418				270				263				148			54.8				155			58.9
Other expenses		611				592				564				19			3.2				47			8.3
Total noninterest expense		15,598				13,929				13,415				1,669			12.0				2,183			16.3
Income before provision for income taxes		20,007				18,652				18,866				1,355			7.3				1,141			6.0
Provision for income taxes		2,630				4,180				4,476				(1,550	)		(37.1	)			(1,846	)		(41.2	)
Net income	$	17,377			$	14,472			$	14,390			$	2,905			20.1		%	$	2,987			20.8		%

Effective tax rate		13.1		%		22.4		%		23.7		%

Net income per common share - Basic	$	1.73			$	1.44			$	1.43
Net income per common share - Diluted		1.70				1.42				1.41
Weighted average common shares outstanding - Basic		10,058				10,041				10,036
Weighted average common shares outstanding - Diluted		10,233				10,221				10,233

*NM=Not meaningful

UNITY BANCORP, INC.

YTD CONSOLIDATED STATEMENTS OF INCOME


	For the nine months ended Sept. 30,								Current YTD vs. Prior YTD
(In thousands, except percentages and per share amounts)	2026				2025				$			%
INTEREST INCOME
Interest-bearing deposits	$	1,652			$	1,291			$	361			28.0		%
FHLB stock		379				433				(54	)		(12.5	)
Securities:
Taxable		4,205				5,257				(1,052	)		(20.0	)
Tax-exempt		69				53				16			30.2
Total securities		4,274				5,310				(1,036	)		(19.5	)
Loans:
SBA loans		2,439				2,753				(314	)		(11.4	)
Commercial loans		80,568				69,518				11,050			15.9
Commercial construction loans		9,165				7,674				1,491			19.4
Residential mortgage loans		32,341				31,086				1,255			4.0
Consumer loans		4,797				4,306				491			11.4
Residential construction loans		6,190				5,390				800			14.8
Total loans		135,500				120,727				14,773			12.2
Total interest income		141,805				127,761				14,044			11.0
INTEREST EXPENSE
Interest-bearing demand deposits		6,354				5,518				836			15.2
Savings deposits		10,120				8,488				1,632			19.2
Brokered deposits		6,925				5,575				1,350			24.2
Time deposits		18,834				19,222				(388	)		(2.0	)
Borrowed funds and subordinated debentures		2,724				3,294				(570	)		(17.3	)
Total interest expense		44,957				42,097				2,860			6.8
Net interest income		96,848				85,664				11,184			13.1
Provision for credit losses, loans		3,024				4,491				(1,467	)		(32.7	)
Provision for credit losses, off-balance sheet		236				16				220		*NM
Release of credit losses, securities		—				(2,824	)		*NM			*NM
Net interest income after provision for credit losses		93,588				83,981				9,607			11.4
NONINTEREST INCOME
Branch fee income		1,736				1,362				374			27.5
Service and loan fee income		2,197				2,007				190			9.5
Gain on sale of SBA loans held for sale, net		892				540				352			65.2
Gain on sale of mortgage loans, net		1,333				1,185				148			12.5
BOLI income		639				546				93			17.0
Net securities (losses) gains		(973	)			4,026				(4,999	)	*NM
Other income		1,332				1,217				115			9.4
Total noninterest income		7,156				10,883				(3,727	)		(34.2	)
NONINTEREST EXPENSE
Compensation and benefits		26,775				24,492				2,283			9.3
Processing and communications		3,602				3,116				486			15.6
Occupancy		2,799				2,527				272			10.8
Furniture and equipment		2,398				2,370				28			1.2
Professional services		1,369				1,118				251			22.5
Advertising		1,267				1,302				(35	)		(2.7	)
Loan related expenses		1,671				462				1,209			261.7
Deposit insurance		930				874				56			6.4
Director fees		948				1,022				(74	)		(7.2	)
Other expenses		1,840				1,758				82			4.7
Total noninterest expense		43,599				39,041				4,558			11.7
Income before provision for income taxes		57,145				55,823				1,322			2.4
Provision for income taxes		11,008				13,339				(2,331	)		(17.5	)
Net income	$	46,137			$	42,484			$	3,653			8.6		%

Effective tax rate		19.3		%		23.9		%

Net income per common share - Basic	$	4.60			$	4.23
Net income per common share - Diluted		4.52				4.15
Weighted average common shares outstanding - Basic		10,037				10,041
Weighted average common shares outstanding - Diluted		10,218				10,231
*NM=Not meaningful

UNITY BANCORP, INC.

QUARTER TO DATE NET INTEREST MARGIN


	For the three months ended
(Dollar amounts in thousands, interest amounts and	Sept. 30, 2026									Sept. 30, 2025
interest rates/yields on a fully tax-equivalent basis)	Average Balance			Interest			Rate/Yield			Average Balance			Interest			Rate/Yield
ASSETS
Interest-earning assets:
Interest-bearing deposits	$	68,313		$	639			3.71	%	$	42,014		$	472			4.46	%
FHLB stock		6,625			105			6.28			7,588			121			6.31
Securities:
Taxable		116,378			1,405			4.83			135,170			1,735			5.14
Tax-exempt		2,484			32			5.13			1,460			24			6.43
Total securities (A)		118,862			1,437			4.84			136,630			1,759			5.15
Loans:
SBA loans		37,858			755			7.98			46,001			964			8.38
Commercial loans		1,670,551			29,044			6.80			1,441,447			24,853			6.75
Commercial construction loans		134,244			2,781			8.11			111,015			2,344			8.26
Residential mortgage loans		676,946			11,017			6.51			674,260			10,749			6.38
Consumer loans		97,003			1,901			7.67			82,851			1,469			6.94
Residential construction loans		101,607			2,318			8.93			68,056			1,636			9.41
Total loans (B)		2,718,209			47,816			6.88			2,423,630			42,015			6.78
Total interest-earning assets	$	2,912,009		$	49,997			6.81	%	$	2,609,862		$	44,367			6.74	%

Noninterest-earning assets:
Cash and due from banks		27,830									23,335
Allowance for credit losses		(34,912	)								(29,641	)
Other assets		104,557									98,914
Total noninterest-earning assets		97,475									92,608
Total assets	$	3,009,484								$	2,702,470

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits	$	423,654		$	2,360			2.21	%	$	363,353		$	1,998			2.18	%
Savings deposits		608,586			3,669			2.39			510,616			3,177			2.47
Brokered deposits		269,744			2,412			3.55			230,728			2,003			3.44
Time deposits		722,327			6,424			3.53			665,691			6,247			3.72
Total interest-bearing deposits		2,024,311			14,865			2.91			1,770,388			13,425			3.01
Borrowed funds and subordinated debentures		86,842			836			3.77			118,350			1,080			3.57
Total interest-bearing liabilities	$	2,111,153		$	15,701			2.95	%	$	1,888,738		$	14,505			3.05	%

Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		491,981									453,140
Other liabilities		25,653									32,741
Total noninterest-bearing liabilities		517,634									485,881
Total shareholders' equity		380,697									327,851
Total liabilities and shareholders' equity	$	3,009,484								$	2,702,470

Net interest spread				$	34,296			3.86	%				$	29,862			3.69	%
Tax-equivalent basis adjustment					(5	)								(6	)
Net interest income				$	34,291								$	29,856
Net interest margin								4.67	%								4.54	%

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

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

UNITY BANCORP, INC.

QUARTER TO DATE NET INTEREST MARGIN


	For the three months ended
(Dollar amounts in thousands, interest amounts and	Sept. 30, 2026									June 30, 2026
interest rates/yields on a fully tax-equivalent basis)	Average Balance			Interest			Rate/Yield			Average Balance			Interest			Rate/Yield
ASSETS
Interest-earning assets:
Interest-bearing deposits	$	68,313		$	639			3.71	%	$	49,429		$	455			3.69	%
FHLB stock		6,625			105			6.28			7,012			140			8.03
Securities:
Taxable		116,378			1,405			4.83			116,246			1,391			4.78
Tax-exempt		2,484			32			5.13			2,197			28			5.17
Total securities (A)		118,862			1,437			4.84			118,443			1,419			4.79
Loans:
SBA Loans		37,858			755			7.98			41,163			840			8.16
Commercial loans		1,670,551			29,044			6.80			1,566,240			26,509			6.70
Commercial construction loans		134,244			2,781			8.11			167,917			3,347			7.89
Residential mortgage loans		676,946			11,017			6.51			669,245			10,411			6.22
Consumer loans		97,003			1,901			7.67			88,833			1,471			6.55
Residential construction loans		101,607			2,318			8.93			90,478			2,047			8.95
Total loans (B)		2,718,209			47,816			6.88			2,623,877			44,625			6.73
Total interest-earning assets	$	2,912,009		$	49,997			6.81	%	$	2,798,761		$	46,639			6.68	%

Noninterest-earning assets:
Cash and due from banks		27,830									26,650
Allowance for credit losses		(34,912	)								(33,833	)
Other assets		104,557									102,359
Total noninterest-earning assets		97,475									95,176
Total assets	$	3,009,484								$	2,893,937

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits	$	423,654		$	2,360			2.21	%	$	396,128		$	2,084			2.11	%
Savings deposits		608,586			3,669			2.39			570,929			3,291			2.31
Brokered deposits		269,744			2,412			3.55			261,454			2,247			3.45
Time deposits		722,327			6,424			3.53			706,984			6,282			3.56
Total interest-bearing deposits		2,024,311			14,865			2.91			1,935,495			13,904			2.88
Borrowed funds and subordinated debentures		86,842			836			3.77			95,890			904			3.73
Total interest-bearing liabilities	$	2,111,153		$	15,701			2.95	%	$	2,031,385		$	14,808			2.92	%

Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		491,981									468,772
Other liabilities		25,653									27,705
Total noninterest-bearing liabilities		517,634									496,477
Total shareholders' equity		380,697									366,075
Total liabilities and shareholders' equity	$	3,009,484								$	2,893,937

Net interest spread				$	34,296			3.86	%				$	31,831			3.76	%
Tax-equivalent basis adjustment					(5	)								(4	)
Net interest income				$	34,291								$	31,827
Net interest margin								4.67	%								4.56	%

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

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

UNITY BANCORP, INC.

YEAR TO DATE NET INTEREST MARGIN


	For the nine months ended
(Dollar amounts in thousands, interest amounts and	Sept. 30, 2026									Sept. 30, 2025
interest rates/yields on a fully tax-equivalent basis)	Average Balance			Interest			Rate/Yield			Average Balance			Interest			Rate/Yield
ASSETS
Interest-earning assets:
Interest-bearing deposits	$	59,747		$	1,652			3.70	%	$	38,796		$	1,291			4.45	%
FHLB stock		6,948			379			7.29			7,558			433			7.65
Securities:
Taxable		117,030			4,205			4.79			138,739			5,257			5.05
Tax-exempt		2,059			81			5.25			1,508			62			5.51
Total securities (A)		119,089			4,286			4.80			140,247			5,319			5.06
Loans:
SBA loans		40,186			2,439			8.00			48,082			2,753			7.55
Commercial loans		1,588,793			80,568			6.69			1,377,350			69,518			6.66
Commercial construction loans		151,507			9,165			7.98			121,863			7,674			8.30
Residential mortgage loans		674,845			32,341			6.39			657,540			31,086			6.30
Consumer loans		90,005			4,797			7.03			80,119			4,306			7.09
Residential construction loans		90,849			6,190			8.98			74,938			5,390			9.49
Total loans (B)		2,636,185			135,500			6.78			2,359,892			120,727			6.75
Total interest-earning assets	$	2,821,969		$	141,817			6.72	%	$	2,546,493		$	127,770			6.71	%

Noninterest-earning assets:
Cash and due from banks		26,416									22,684
Allowance for credit losses		(33,924	)								(28,396	)
Other assets		101,956									95,248
Total noninterest-earning assets		94,448									89,536
Total assets	$	2,916,417								$	2,636,029

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits	$	401,882		$	6,354			2.11	%	$	353,310		$	5,518			2.09	%
Savings deposits		581,078			10,120			2.33			497,715			8,488			2.28
Brokered deposits		265,706			6,925			3.48			217,187			5,575			3.43
Time deposits		705,024			18,834			3.57			662,119			19,222			3.88
Total interest-bearing deposits		1,953,690			42,233			2.89			1,730,331			38,803			3.00
Borrowed funds and subordinated debentures		96,909			2,724			3.71			118,548			3,294			3.66
Total interest-bearing liabilities	$	2,050,599		$	44,957			2.93	%	$	1,848,879		$	42,097			3.04	%

Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		472,911									440,388
Other liabilities		25,988									32,356
Total noninterest-bearing liabilities		498,899									472,744
Total shareholders' equity		366,919									314,406
Total liabilities and shareholders' equity	$	2,916,417								$	2,636,029

Net interest spread				$	96,860			3.79	%				$	85,673			3.67	%
Tax-equivalent basis adjustment					(12	)								(9	)
Net interest income				$	96,848								$	85,664
Net interest margin								4.59	%								4.50	%

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

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

UNITY BANCORP, INC.

QUARTERLY ALLOWANCE FOR CREDIT LOSSES AND LOAN QUALITY SCHEDULES


(Amounts in thousands, except percentages)	Sept. 30, 2026			June 30, 2026			March 31, 2026				Dec. 31, 2025				Sept. 30, 2025
ALLOWANCE FOR CREDIT LOSSES:
Balance, beginning of period	$	34,551		$	33,354		$	32,342			$	30,245			$	29,012
Provision for credit losses for loans		941			1,040			1,043				2,208				1,409
		35,492			34,394			33,385				32,453				30,421
Less: Chargeoffs
SBA loans		—			—			50				265				211
Commercial loans		—			—			140				—				—
Residential mortgage loans		—			—			—				46				85
Consumer loans		2			—			10				11				30
Residential construction loans		—			—			40				—				—
Total chargeoffs		2			—			240				322				326
Add: Recoveries
SBA loans		15			56			5				4				50
Commercial loans		98			95			93				196				92
Residential mortgage loans		—			—			100				—				—
Consumer loans		7			6			11				11				8
Residential construction loans		—			—			—				—				—
Total recoveries		120			157			209				211				150
Net recoveries (chargeoffs)		118			157			(31	)			(111	)			(176	)
Balance, end of period	$	35,610		$	34,551		$	33,354			$	32,342			$	30,245

ASSET QUALITY INFORMATION:

Nonaccrual loans:
SBA loans	$	788		$	1,616		$	1,645			$	1,751			$	4,225
Commercial loans		14,635			17,743			18,375				18,473				4,006
Residential mortgage loans		7,000			10,290			8,915				8,173				11,174
Consumer loans		55			2,926			1,557				1,268				938
Residential construction loans		126			442			128				171				171
Total nonaccrual loans		22,604			33,017			30,620				29,836				20,514
OREO		1,472			1,472			1,472				1,472				—
Nonaccrual assets	$	24,076		$	34,489		$	32,092			$	31,308			$	20,514

Loans 90 days past due & still accruing	$	2,647		$	—		$	90			$	—			$	356

Nonaccrual loans to total loans		0.81	%		1.23	%		1.18		%		1.17		%		0.83		%
Nonaccrual assets to total assets		0.74			1.08			1.06				1.06				0.71

Allowance for credit losses to:
Total loans		1.28	%		1.29	%		1.28		%		1.27		%		1.23		%
Total nonaccrual loans		157.54			104.65			108.93				108.40				147.44

UNITY BANCORP, INC.

QUARTERLY FINANCIAL DATA


(In thousands, except %'s, employee, office and per share amounts)	Sept. 30, 2026			June 30, 2026			March 31, 2026				Dec. 31, 2025				Sept. 30, 2025
SUMMARY OF INCOME:
Total interest income	$	49,992		$	46,635		$	45,179			$	45,868			$	44,361
Total interest expense		15,701			14,808			14,449				14,499				14,505
Net interest income		34,291			31,827			30,730				31,369				29,856
Provision for credit losses		1,045			1,167			1,048				2,258				542
Net interest income after provision for credit losses		33,246			30,660			29,682				29,111				29,314
Total noninterest income		2,359			1,921			2,876				3,898				2,967
Total noninterest expense		15,598			13,929			14,071				13,315				13,415
Income before provision for income taxes		20,007			18,652			18,487				19,694				18,866
Provision for income taxes		2,630			4,180			4,199				4,222				4,476
Net income	$	17,377		$	14,472		$	14,288			$	15,472			$	14,390
Net income per common share - Basic	$	1.73		$	1.44		$	1.43			$	1.55			$	1.43
Net income per common share - Diluted		1.70			1.42			1.40				1.52				1.41
COMMON SHARE DATA:
Market price per share	$	54.22		$	58.69		$	51.83			$	51.72			$	48.87
Dividends paid		0.17			0.16			0.16				0.15				0.15
Book value per common share		38.59			37.02			35.66				34.63				33.26
Weighted average common shares outstanding - Basic		10,058			10,041			10,012				10,008				10,036
Weighted average common shares outstanding - Diluted		10,233			10,221			10,199				10,195				10,233
Issued common shares		10,141			10,116			10,114				10,048				11,681
Outstanding common shares		10,068			10,043			10,041				9,982				10,041
Treasury shares		73			73			73				66				1,640
QUARTERLY PERFORMANCE RATIOS (ANNUALIZED):
Return on average assets		2.29	%		2.01	%		2.04		%		2.20		%		2.11		%
Return on average equity		18.11			15.86			16.38				18.08				17.41
Efficiency ratio **		42.28			40.50			41.77				39.52				41.47
Noninterest expense to average assets		2.06			1.93			2.01				1.89				1.97
BALANCE SHEET DATA:
Total assets	$	3,250,497		$	3,194,313		$	3,027,327			$	2,966,652			$	2,876,365
Total securities		122,788			119,300			115,268				124,015				131,252
Total loans		2,780,278			2,682,494			2,601,656				2,544,713				2,468,527
Allowance for credit losses		35,610			34,551			33,354				32,342				30,245
Total deposits		2,559,498			2,462,549			2,379,140				2,324,061				2,267,484
Total shareholders' equity		388,473			371,813			358,095				345,631				334,023
TAX EQUIVALENT YIELDS AND RATES:
Interest-earning assets		6.81	%		6.68	%		6.66		%		6.72		%		6.74		%
Interest-bearing liabilities		2.95			2.92			2.92				2.94				3.05
Net interest spread		3.86			3.76			3.74				3.78				3.69
Net interest margin		4.67			4.56			4.53				4.60				4.54
CREDIT QUALITY:
Nonaccrual assets	$	24,076		$	34,489		$	32,092			$	31,308			$	20,514
QTD annualized net recoveries (chargeoffs) to QTD average loans		0.02	%		0.03	%		(0.01	)	%		(0.02	)	%		(0.03	)	%
Allowance for credit losses to total loans		1.28			1.29			1.28				1.27				1.23
Nonaccrual loans to total loans		0.81			1.23			1.18				1.17				0.83
Nonaccrual assets to total assets		0.74			1.08			1.06				1.06				0.71
UNITY BANCORP CAPITAL RATIOS
Total equity to total assets		11.95	%		11.64	%		11.83		%		11.65		%		11.61		%
Leverage ratio		13.22			13.17			12.93				12.72				12.71
Common Equity Tier 1 Capital Ratio		14.46			14.19			14.50				14.45				14.45
Risk-based Tier 1 Capital Ratio		14.84			14.57			14.91				14.87				14.88
Risk-based Total Capital Ratio		16.09			15.82			16.16				16.12				16.13

Number of banking offices		22			22			22				22				22
Employee Full-Time Equivalent		239			249			244				242				238

** The efficiency ratio is a non-GAAP measure, calculated based on the noninterest expense divided by the sum of net interest income plus non interest income, excluding net gains and losses on securities.

UNITY BANCORP, INC.

LOAN PORTFOLIO COMPOSITION


(In thousands, except percentages)	Sept. 30, 2026		%			Dec. 31, 2025		%
Loans Held for Sale	$	7,589		0.3	%	$	9,490		0.4

SBA Loans		33,272		1.2			34,259		1.3

Commercial Loans
SBA 504		50,230		1.8			43,802		1.7
Commercial & industrial		206,292		7.4			183,163		7.2
Commercial mortgage - owner occupied		753,277		27.1			660,427		26.0
Commercial mortgage - nonowner occupied		617,076		22.2			531,954		20.9
Other		90,276		3.2			98,686		39.0
Total Commercial Loans		1,717,151		61.7			1,518,032		59.7

Commercial Construction Loans		138,776		5.0			147,215		5.8

Residential Mortgage Loans
Primary residence		472,868		17.0			472,482		18.6
Secondary residence		70,944		2.6			71,656		2.8
Investor property		128,660		4.6			133,083		5.2
Total Residential Mortgage Loans		672,472		24.2			677,221		26.6

Consumer Loans
Home equity		100,047		3.6			82,488		3.2
Consumer other		2,847		0.1			2,731		0.1
Total Consumer Loans		102,894		3.7			85,219		3.3

Residential Construction Loans		108,124		3.9			73,277		2.9

Total Gross Loans	$	2,780,278		100.0	%	$	2,544,713		100.0	%

UNITY BANCORP, INC.

QUARTERLY NON-GAAP / CORE RECONCILIATION


	For the three months ended
(In thousands, except percentages and per share amounts)	Sept. 30, 2026				June 30, 2026			Sept. 30, 2025
Adjusted net income:
Net income (GAAP)	$	17,377			$	14,472		$	14,390
Non-recurring transactions:
Less: Release of credit losses, securities		—				—			(787	)
Less: Net securities gains, unrealized		—				—			(218	)
Less: Federal investment tax credit benefit		(2,500	)			—			—
Add: One-time SERP expense		769				—			—
Adjusted (provision for) release of income taxes		(188	)			—			238
Adjusted net income (non-GAAP)	$	15,458			$	14,472		$	13,623

Adjusted net income per common share:
Weighted average common shares outstanding - Basic		10,058				10,041			10,036
Weighted average common shares outstanding - Diluted		10,233				10,221			10,233

Net income per common share - Basic (GAAP)	$	1.73			$	1.44		$	1.43
Net income per common share - Diluted (GAAP)		1.70				1.42			1.41

Adjusted net income per common share - Basic (non-GAAP)	$	1.54			N/A			$	1.36
Adjusted net income per common share - Diluted (non-GAAP)		1.51			N/A				1.33

Adjusted return on average assets:
Total QTD average assets	$	3,009,484			$	2,893,937		$	2,702,470

Return on average assets (GAAP)		2.29		%		2.01	%		2.11		%
Adjusted return on average assets (non-GAAP)		2.04			N/A				2.00

Adjusted return on average equity:
Total QTD average equity	$	380,697			$	366,075		$	327,851

Return on average equity (GAAP)		18.11		%		15.86	%		17.41		%
Adjusted return on average equity (non-GAAP)		16.11			N/A				16.49

This press release contains certain supplemental financial information, described in the table above, which has been determined by methods other than U.S. Generally Accepted Accounting Principles (“GAAP”) that management uses in its analysis of its performance. These non-GAAP financial measures are “adjusted net income,” “adjusted net income per share - basic,” “adjusted net income per share - diluted,” “adjusted return on average assets,” and "adjusted return on average equity."

Management believes that these non-GAAP financial measures provide valuable insights into understanding our financial results by excluding certain items that can distort our core business results. This allows investors to better understand our ongoing operations and assess our future potential, while still being transparent about the adjustments made to arrive at these non-GAAP figures. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and the Company strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

In addition to the items noted above, defined footnotes are included in the Quarterly Non-GAAP/Core Reconciliation table above. Income annualized is calculated using income for the period divided by the number of days in the period, then multiplied by total days in the year. Average equity is calculated using the sum of daily equity balance for the period, divided by the number of days in the period.