During the quarter, we also recognized a pre-tax unrealized gain of $1.5 million, related to the continued resolution of Patriot National Bancorp, Inc. Excluding this item, on a core basis, for the quarter, Unity earned $14.4 million, or $1.41 per diluted share, representing a 2.04% ROA and 16.77% ROE.
As we look ahead to 2026, Unity remains focused on delivering exceptional customer experiences, deepening relationships, and attracting new customers to the franchise. These priorities position us well to sustain our momentum and continue creating long-term value for our shareholders.”
Clinton, NJ -- Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $15.5 million, or $1.52 per diluted share, for the quarter ended December 31, 2025, compared to net income of $14.4 million, or $1.41 per diluted share for the quarter ended September 30, 2025. For the twelve months ended December 31, 2025, Unity Bancorp reported net income of $58.0 million, or $5.67 per diluted share, compared to net income of $41.5 million, or $4.06 per diluted share, for the twelve months ended December 31, 2024.
Fourth Quarter Earnings Highlights
- Net interest income, the primary driver of earnings, was $31.4 million for the quarter ended December 31, 2025, an increase of $1.5 million, as compared to $29.9 million for the quarter ended September 30, 2025. Net interest margin (“NIM”) increased 6 basis points to 4.60% for the quarter ended December 31, 2025, compared to the quarter ended September 30, 2025. The increase was primarily due to the declining rate on interest bearing liabilities.
- The provision for credit losses on loans was $2.2 million for the quarter ended December 31, 2025, compared to $1.4 million for the quarter ended September 30, 2025. The provision in the current quarter was primarily driven by loan growth, with additional increases in qualitative adjustments due to increased nonaccrual assets.
- Noninterest income was $3.9 million for the quarter ended December 31, 2025, compared to $3.0 million for the quarter ended September 30, 2025. The $0.9 million increase was primarily due to the substantial unrealized gain associated with Patriot. This was partially offset by lower gain on sale of mortgages.
- During the quarter ended September 30, 2025, Unity converted its debt security issued by Patriot National Bancorp, Inc. into common stock, resulting in ownership of approximately 2.673 million restricted Patriot shares valued at $0.75 per share. These shares remained restricted as of December 31, 2025, pending Patriot’s registration of the shares or the availability of an applicable exemption and their eligibility for trading on a national securities exchange. During the quarter ended December 31, 2025, Unity marked the security to $1.30 per share, resulting in a $1.5 million unrealized gain on the Patriot position.
- Noninterest expense was $13.3 million for the quarter ended December 31, 2025, compared to $13.4 million for the quarter ended September 30, 2025. The decrease was primarily due to lower compensation and benefits expenses, partially offset by increases in loan related expenses, professional services and other expenses. Compensation and benefits expenses declined quarter over quarter due to $0.7 million of one-time accrual reversals.
- The effective tax rate was 21.4% for the quarter ended December 31, 2025, compared to 23.7% for the quarter ended September 30, 2025. During the fourth quarter of 2025, Unity purchased $8.0 million of federal tax credits for $7.5 million, resulting in $0.5 million of tax savings. The Company intends to evaluate other tax credit opportunities on an ongoing basis, subject to market availability and regulatory considerations.
Balance Sheet Highlights
- Total gross loans increased $284.1 million, or 12.6%, from December 31, 2024, primarily due to increases in the commercial, residential mortgage, and commercial construction loan categories. Furthermore, gross loans increased $76.2 million, or 3.1% from September 30, 2025.
- As of December 31, 2025, the allowance for credit losses as a percentage of gross loans was 1.27%.
- Total deposits increased $223.7 million, or 10.7%, from December 31, 2024. Further, total deposits increased $56.6 million, or 2.5% from September 30, 2025. As of December 31, 2025, uninsured or uncollateralized deposits represented 21.7% of total deposits. The Company’s deposit composition as of December 31, 2025, consisted of 20.0% in noninterest bearing demand deposits, 17.5% in interest-bearing demand deposits, 24.4% in savings deposits and 38.1% in time deposits.
- As of December 31, 2025, investments comprised 4.2% of total assets. Available for sale debt securities (“AFS”) were $70.9 million or 2.4% of total assets. Held to maturity (“HTM”) debt securities were $36.6 million or 1.2% of total assets. As of December 31, 2025, pre-tax net unrealized losses on AFS and HTM were $1.6 million and $6.2 million, respectively. Equity securities were $16.6 million or 0.6% of total assets as of December 31, 2025.
- Borrowed funds increased $35.3 million from December 31, 2024. Borrowed funds were entirely comprised of borrowings from the FHLB.
- Shareholders’ equity was $345.6 million as of December 31, 2025, compared to $295.6 million as of December 31, 2024. The $50.0 million increase was primarily driven by 2025 earnings, partially offset by dividend payments and share repurchase activity. During the quarter ended December 31, 2025, Unity Bancorp, Inc. repurchased 66,296 shares at a weighted average price of $46.55 per share. For the year ended December 31, 2025, Unity Bancorp, Inc. repurchased 116,296 shares at a weighted average price of $43.21 per share. During the quarter ended December 31, 2025, Unity Bancorp, Inc. retired approximately 1.6 million shares of treasury stock, valued at $35.5 million. The retired shares were returned to the pool of authorized but not issued shares.
- Book value per common share was $34.63 as of December 31, 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:
- The Leverage Ratio increased 50 basis points to 12.72% at December 31, 2025, compared to 12.22% at December 31, 2024.
- The Common Equity Tier 1 Capital Ratio increased 55 basis points to 14.45% at December 31, 2025, compared to 13.90% at December 31, 2024.
- The Tier 1 Capital Ratio increased 50 basis points to 14.87% at December 31, 2025, compared to 14.37% at December 31, 2024.
- The Total Capital Ratio increased 50 basis points, to 16.12% at December 31, 2025, compared to 15.62% at December 31, 2024.
- At December 31, 2025, the Company held $216.5 million of cash and cash equivalents. The Company also maintained approximately $499.2 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 142.1% of uninsured or uncollateralized deposits.
- As of December 31, 2025, nonaccrual assets (including OREO) were $31.3 million, compared to $20.5 million as of September 30, 2025. The ratio of nonaccrual loans to total loans was 1.17% as of December 31, 2025. The ratio of nonaccrual assets to total assets was 1.06% as of December 31, 2025. The increase primarily reflects one $15.5 million well-secured commercial real estate relationship that migrated to nonaccrual status during the quarter.
Other Highlights
| ❖ | Effective as of January 1, 2026, George Boyan was promoted to President. Mr. Boyan previously served as Executive Vice President and Chief Financial Officer, where he played a pivotal role in the Company’s financial strategy and growth. In addition to his new role as President, Mr. Boyan was appointed to the Boards of Directors of both Unity Bancorp, Inc. and Unity Bank, also effective January 1, 2026. James Davies will succeed Mr. Boyan as Chief Financial Officer. |
| ❖ | In December 2025, Unity Bancorp, Inc. was named to Piper Sandler’s Sm-All Stars Class of 2025, a prestigious designation recognizing the top-performing small-cap banks and thrifts in the nation. |
Unity Bancorp, Inc. is a financial services organization headquartered in Clinton, New Jersey, with approximately $3.0 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.
December 31, 2025 vs. | ||||||||||
September 30, 2025 | December 31, 2024 | |||||||||
(In thousands, except percentages and per share amounts) | December 31, 2025 | September 30, 2025 | December 31, 2024 | % | % | |||||
BALANCE SHEET DATA | ||||||||||
Total assets | $ | 2,966,652 | $ | 2,876,365 | $ | 2,654,017 | 3.1 | % | 11.8 | % |
Total deposits | 2,324,061 | 2,267,484 | 2,100,313 | 2.5 | 10.7 | |||||
Total gross loans | 2,544,713 | 2,468,527 | 2,260,657 | 3.1 | 12.6 | |||||
Total securities | 124,015 | 131,252 | 145,028 | (5.5) | (14.5) | |||||
Total shareholders' equity | 345,631 | 334,023 | 295,583 | 3.5 | 16.9 | |||||
Allowance for credit losses | 32,342 | 30,245 | 26,788 | 6.9 | 20.7 | |||||
FINANCIAL DATA - QUARTER TO DATE | ||||||||||
Income before provision for income taxes | $ | 19,694 | $ | 18,866 | $ | 14,489 | 4.4 | 35.9 | ||
Provision for income taxes | 4,222 | 4,476 | 2,984 | (5.7) | 41.5 | |||||
Net income | $ | 15,472 | $ | 14,390 | $ | 11,505 | 7.5 | 34.5 | ||
Net income per common share - Basic | $ | 1.55 | $ | 1.43 | $ | 1.15 | 8.4 | 34.8 | ||
Net income per common share - Diluted | 1.52 | 1.41 | 1.13 | 7.8 | 34.5 | |||||
PERFORMANCE RATIOS - QUARTER TO DATE (ANNUALIZED) | ||||||||||
Return on average assets | 2.20 | % | 2.11 | % | 1.83 | % | ||||
Return on average equity | 18.08 | 17.41 | 15.77 | |||||||
Efficiency ratio** | 39.52 | 41.47 | 44.44 | |||||||
Cost of funds | 2.38 | 2.46 | 2.51 | |||||||
Net interest margin | 4.60 | 4.54 | 4.37 | |||||||
Noninterest expense to average assets | 1.89 | 1.97 | 2.01 | |||||||
FINANCIAL DATA - YEAR TO DATE | ||||||||||
Income before provision for income taxes | $ | 75,512 | $ | 54,390 | 38.8 | |||||
Provision for income taxes | 17,561 | 12,940 | 35.7 | |||||||
Net income | $ | 57,951 | $ | 41,450 | 39.8 | |||||
Net income per common share - Basic | $ | 5.78 | $ | 4.13 | 40.0 | |||||
Net income per common share - Diluted | 5.67 | 4.06 | 39.7 | |||||||
PERFORMANCE RATIOS - YEAR TO DATE | ||||||||||
Return on average assets | 2.17 | % | 1.68 | % | ||||||
Return on average equity | 18.07 | 14.99 | ||||||||
Efficiency ratio** | 41.48 | 45.77 | ||||||||
Cost of funds | 2.44 | 2.65 | ||||||||
Net interest margin | 4.52 | 4.16 | ||||||||
Noninterest expense to average assets | 1.96 | 1.98 | ||||||||
SHARE INFORMATION | ||||||||||
Market price per share | $ | 51.72 | $ | 48.87 | $ | 43.61 | 5.8 | 18.6 | ||
Dividends paid (QTD) | 0.15 | 0.15 | 0.13 | - | 15.4 | |||||
Book value per common share | 34.63 | 33.26 | 29.48 | 4.1 | 17.5 | |||||
Average diluted shares outstanding (QTD) | 10,195 | 10,233 | 10,204 | (0.4) | (0.1) | |||||
UNITY BANCORP CAPITAL RATIOS | ||||||||||
Total equity to total assets | 11.65 | % | 11.61 | % | 11.14 | % | 0.3 | 4.6 | ||
Leverage ratio | 12.72 | 12.71 | 12.22 | 0.1 | 4.1 | |||||
Common Equity Tier 1 Capital Ratio | 14.45 | 14.45 | 13.90 | - | 4.0 | |||||
Risk-based Tier 1 Capital Ratio | 14.87 | 14.88 | 14.37 | (0.1) | 3.5 | |||||
Risk-based Total Capital Ratio | 16.12 | 16.13 | 15.62 | (0.1) | 3.2 | |||||
CREDIT QUALITY AND RATIOS | ||||||||||
Nonaccrual assets | $ | 31,308 | $ | 20,514 | $ | 15,046 | 52.6 | 108.1 | ||
QTD annualized net (chargeoffs) to QTD average loans | (0.02) | % | (0.03) | % | (0.12) | % | ||||
Allowance for credit losses to total loans | 1.27 | 1.23 | 1.18 | |||||||
Nonaccrual loans to total loans | 1.17 | 0.83 | 0.58 | ||||||||||||
Nonaccrual assets to total assets | 1.06 | 0.71 | 0.57 | ||||||||||||
** 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
December 31, 2025 vs. | ||||||||||
September 30, 2025 | December 31, 2024 | |||||||||
(In thousands, except percentages) | December 31, 2025 | September 30, 2025 | December 31, 2024 | % | % | |||||
ASSETS | ||||||||||
Cash and due from banks | $ | 19,841 | $ | 20,860 | $ | 20,206 | (4.9) | % | (1.8) | % |
Interest-bearing deposits | 196,678 | 182,626 | 160,232 | 7.7 | 22.7 | |||||
Cash and cash equivalents | 216,519 | 203,486 | 180,438 | 6.4 | 20.0 | |||||
Securities: | ||||||||||
Debt securities available for sale, at market value, net of valuation allowance | 70,870 | 82,063 | 93,884 | (13.6) | (24.5) | |||||
Debt securities held to maturity, at book value | 36,576 | 36,505 | 41,294 | 0.2 | (11.4) | |||||
Equity securities, at market value | 16,569 | 12,684 | 9,850 | 30.6 | 68.2 | |||||
Total securities | 124,015 | 131,252 | 145,028 | (5.5) | (14.5) | |||||
Loans: | ||||||||||
Loans held for sale | 9,490 | 15,421 | 12,163 | (38.5) | (22.0) | |||||
SBA loans held for investment | 34,259 | 37,537 | 38,309 | (8.7) | (10.6) | |||||
Commercial loans | 1,518,032 | 1,465,497 | 1,281,436 | 3.6 | 18.5 | |||||
Commercial construction loans | 147,215 | 117,111 | 130,193 | 25.7 | 13.1 | |||||
Residential mortgage loans | 677,221 | 676,862 | 630,927 | 0.1 | 7.3 | |||||
Consumer loans | 85,219 | 82,857 | 76,711 | 2.9 | 11.1 | |||||
Residential construction loans | 73,277 | 73,242 | 90,918 | - | (19.4) | |||||
Total loans | 2,544,713 | 2,468,527 | 2,260,657 | 3.1 | 12.6 | |||||
Allowance for credit losses | (32,342) | (30,245) | (26,788) | 6.9 | 20.7 | |||||
Net loans | 2,512,371 | 2,438,282 | 2,233,869 | 3.0 | 12.5 | |||||
Premises and equipment, net | 18,022 | 18,439 | 18,778 | (2.3) | (4.0) | |||||
Bank owned life insurance ("BOLI") | 26,547 | 26,319 | 25,773 | 0.9 | 3.0 | |||||
Deferred tax assets | 14,640 | 15,022 | 14,106 | (2.5) | 3.8 | |||||
Federal Home Loan Bank ("FHLB") stock | 14,314 | 13,218 | 12,507 | 8.3 | 14.4 | |||||
Accrued interest receivable | 12,896 | 13,288 | 12,691 | (3.0) | 1.6 | |||||
Goodwill | 1,516 | 1,516 | 1,516 | - | - | |||||
Other real estate owned ("OREO") | 1,472 | - | - | *NM | *NM | |||||
Prepaid expenses and other assets | 24,340 | 15,543 | 9,311 | 56.6 | 161.4 | |||||
Total assets | $ | 2,966,652 | $ | 2,876,365 | $ | 2,654,017 | 3.1 | % | 11.8 | % |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
Liabilities: | ||||||||||
Deposits: | ||||||||||
Noninterest-bearing demand | $ | 465,596 | $ | 447,510 | $ | 440,803 | 4.0 | % | 5.6 | % |
Interest-bearing demand | 369,131 | 362,449 | 321,780 | 1.8 | 14.7 | |||||
Savings | 535,044 | 535,560 | 491,175 | (0.1) | 8.9 | |||||
Brokered deposits | 274,203 | 235,122 | 217,931 | 16.6 | 25.8 | |||||
Time deposits | 680,087 | 686,843 | 628,624 | (1.0) | 8.2 | |||||
Total deposits | 2,324,061 | 2,267,484 | 2,100,313 | 2.5 | 10.7 | |||||
Borrowed funds | 255,774 | 231,707 | 220,504 | 10.4 | 16.0 | |||||
Subordinated debentures | 10,310 | 10,310 | 10,310 | - | - | |||||
Accrued interest payable | 2,138 | 1,790 | 1,702 | 19.4 | 25.6 | |||||
Accrued expenses and other liabilities | 28,738 | 31,051 | 25,605 | (7.4) | 12.2 | |||||
Total liabilities | 2,621,021 | 2,542,342 | 2,358,434 | 3.1 | 11.1 | |||||
Shareholders' equity: | ||||||||||
Common stock | 105,892 | 105,320 | 103,936 | 0.5 | 1.9 | |||||
Retained earnings | 243,935 | 265,491 | 227,331 | *NM | 7.3 | |||||
Treasury stock, at cost | (3,101) | (35,515) | (33,577) | *NM | (90.8) | |||||
Accumulated other comprehensive loss | (1,095) | (1,273) | (2,107) | (14.0) | (48.0) | |||||
Total shareholders' equity | 345,631 | 334,023 | 295,583 | 3.5 | 16.9 | |||||
Total liabilities and shareholders' equity | $ | 2,966,652 | $ | 2,876,365 | $ | 2,654,017 | 3.1 | % | 11.8 | % |
Shares issued | 10,048 | 11,681 | 11,616 | |||||||
Shares outstanding | 9,982 | 10,041 | 10,026 | |||||||
Treasury shares | 1,640 | 1,590 | ||||||||
*NM=Not meaningful | ||||||||||
UNITY BANCORP, INC.
QTD CONSOLIDATED STATEMENTS OF INCOME
December 31, 2025 vs. | |||||||||||||||||
For the three months ended | September 30, 2025 | December 31, 2024 | |||||||||||||||
(In thousands, except percentages and per share amounts) | December 31, 2025 | September 30, 2025 | December 31, 2024 | $ | % | $ | % | ||||||||||
INTEREST INCOME | |||||||||||||||||
Interest-bearing deposits | $ | $ | $ | $ | 42.8 | % | $ | 39.3 | % | ||||||||
FHLB stock | 9.9 | (31) | (18.9) | ||||||||||||||
Securities: | |||||||||||||||||
Taxable | 1,561 | 1,735 | 1,809 | (174) | (10.0) | (248) | (13.7) | ||||||||||
Tax-exempt | - | - | 5.9 | ||||||||||||||
Total securities | 1,579 | 1,753 | 1,826 | (174) | (9.9) | (247) | (13.5) | ||||||||||
Loans: | |||||||||||||||||
SBA loans | 1,037 | 1,101 | 7.6 | (64) | (5.8) | ||||||||||||
Commercial loans | 25,626 | 24,853 | 20,310 | 3.1 | 5,316 | 26.2 | |||||||||||
Commercial construction loans | 2,666 | 2,344 | 3,190 | 13.7 | (524) | (16.4) | |||||||||||
Residential mortgage loans | 10,838 | 10,749 | 9,578 | 0.8 | 1,260 | 13.2 | |||||||||||
Consumer loans | 1,524 | 1,469 | 1,379 | 3.7 | 10.5 | ||||||||||||
Residential construction loans | 1,791 | 1,636 | 2,232 | 9.5 | (441) | (19.8) | |||||||||||
Total loans | 43,482 | 42,015 | 37,790 | 1,467 | 3.5 | 5,692 | 15.1 | ||||||||||
Total interest income | 45,868 | 44,361 | 40,264 | 1,507 | 3.4 | 5,604 | 13.9 | ||||||||||
INTEREST EXPENSE | |||||||||||||||||
Interest-bearing demand deposits | 2,009 | 1,998 | 1,653 | 0.6 | 21.5 | ||||||||||||
Savings deposits | 3,165 | 3,177 | 2,909 | (12) | (0.4) | 8.8 | |||||||||||
Brokered deposits | 2,033 | 2,003 | 1,896 | 1.5 | 7.2 | ||||||||||||
Time deposits | 6,350 | 6,247 | 6,200 | 1.6 | 2.4 | ||||||||||||
Borrowed funds and subordinated debentures | 1,080 | 1,116 | (138) | (12.8) | (174) | (15.6) | |||||||||||
Total interest expense | 14,499 | 14,505 | 13,774 | (6) | - | 5.3 | |||||||||||
Net interest income | 31,369 | 29,856 | 26,490 | 1,513 | 5.1 | 4,879 | 18.4 | ||||||||||
Provision for credit losses, loans | 2,208 | 1,409 | 56.7 | 1,738 | 369.8 | ||||||||||||
Provision (release) for credit losses, off-balance sheet | (80) | (65) | *NM | *NM | |||||||||||||
(Release) provision of credit losses, securities | - | (787) | *NM | (895) | *NM | ||||||||||||
Net interest income after provision for credit losses | 29,111 | 29,314 | 25,190 | (203) | (0.7) | 3,921 | 15.6 | ||||||||||
NONINTEREST INCOME | |||||||||||||||||
Branch fee income | 5.6 | 2.6 | |||||||||||||||
Service and loan fee income | 16.1 | 44.5 | |||||||||||||||
Gain on sale of SBA loans held for sale, net | (73) | (30.7) | 251.1 | ||||||||||||||
Gain on sale of mortgage loans, net | (239) | (41.1) | (10) | (2.8) | |||||||||||||
BOLI income | 8.1 | 47.1 | |||||||||||||||
Net securities gains | 1,570 | 1,095 | 230.5 | 1,556 | *NM | ||||||||||||
Other income | 2.0 | 4.0 | |||||||||||||||
Total noninterest income | 3,898 | 2,967 | 1,916 | 31.4 | 1,982 | 103.4 | |||||||||||
NONINTEREST EXPENSE | |||||||||||||||||
Compensation and benefits | 7,693 | 8,430 | 7,997 | (737) | (8.7) | (304) | (3.8) | ||||||||||
Processing and communications | 1,077 | 1,150 | (73) | (6.3) | 25.4 | ||||||||||||
Occupancy | 5.0 | 11.4 | |||||||||||||||
Furniture and equipment | 1.9 | 2.4 | |||||||||||||||
Professional services | 58.0 | 23.8 | |||||||||||||||
Advertising | (77) | (16.9) | 8.9 | ||||||||||||||
Loan related expenses | 182.1 | 138.0 | |||||||||||||||
Deposit insurance | (20) | (6.3) | 53.8 | ||||||||||||||
Director fees | 3.0 | 10.2 | |||||||||||||||
Other expenses | 41.0 | 21.9 | |||||||||||||||
Total noninterest expense | 13,315 | 13,415 | 12,617 | (100) | (0.7) | 5.5 | |||||||||||
Income before provision for income taxes | 19,694 | 18,866 | 14,489 | 4.4 | 5,205 | 35.9 | |||||||||||
Provision for income taxes | 4,222 | 4,476 | 2,984 | (254) | (5.7) | 1,238 | 41.5 | ||||||||||
Net income | $ | 15,472 | $ | 14,390 | $ | 11,505 | $ | 1,082 | 7.5 | % | $ | 3,967 | 34.5 | % | |||
Effective tax rate | 21.4 | % | 23.7 | % | 20.6 | % | |||||||||||
Net income per common share - Basic | $ | 1.55 | $ | 1.43 | $ | 1.15 | |||||||||||
Net income per common share - Diluted | 1.52 | 1.41 | 1.13 | ||||||||||||||
Weighted average common shares outstanding - Basic | 10,008 | 10,036 | 10,002 | ||||||||||||||
Weighted average common shares outstanding - Diluted | 10,195 | 10,233 | 10,204 | ||||||||||||||
*NM=Not meaningful | |||||||||||||||||
UNITY BANCORP, INC.
YTD CONSOLIDATED STATEMENTS OF INCOME
For the years ended December 31, | Current YTD vs. Prior YTD | ||||||||
(In thousands, except percentages and per share amounts) | 2025 | 2024 | $ | % | |||||
INTEREST INCOME | |||||||||
Interest-bearing deposits | $ | 1,964 | $ | 2,033 | $ | (69) | (3.4) | % | |
FHLB stock | (224) | (28.4) | |||||||
Securities: | |||||||||
Taxable | 6,818 | 7,312 | (494) | (6.8) | |||||
Tax-exempt | 1.4 | ||||||||
Total securities | 6,889 | 7,382 | (493) | (6.7) | |||||
Loans: | |||||||||
SBA loans | 3,790 | 4,887 | (1,097) | (22.4) | |||||
Commercial loans | 95,144 | 75,699 | 19,445 | 25.7 | |||||
Commercial construction loans | 10,340 | 12,074 | (1,734) | (14.4) | |||||
Residential mortgage loans | 41,925 | 37,770 | 4,155 | 11.0 | |||||
Consumer loans | 5,830 | 5,607 | 4.0 | ||||||
Residential construction loans | 7,181 | 9,497 | (2,316) | (24.4) | |||||
Total loans | 164,210 | 145,534 | 18,676 | 12.8 | |||||
Total interest income | 173,628 | 155,738 | 17,890 | 11.5 | |||||
INTEREST EXPENSE | |||||||||
Interest-bearing demand deposits | 7,528 | 7,176 | 4.9 | ||||||
Savings deposits | 11,652 | 13,006 | (1,354) | (10.4) | |||||
Brokered deposits | 7,608 | 8,412 | (804) | (9.6) | |||||
Time deposits | 25,571 | 22,918 | 2,653 | 11.6 | |||||
Borrowed funds and subordinated debentures | 4,236 | 5,615 | (1,379) | (24.6) | |||||
Total interest expense | 56,595 | 57,127 | (532) | (0.9) | |||||
Net interest income | 117,033 | 98,611 | 18,422 | 18.7 | |||||
Provision for credit losses, loans | 6,699 | 2,407 | 4,292 | 178.3 | |||||
Provision for credit losses, off-balance sheet | *NM | ||||||||
(Release) Provision for credit losses, securities | (2,824) | 1,541 | *NM | *NM | |||||
Net interest income after provision for credit losses | 113,092 | 94,662 | 18,430 | 19.5 | |||||
NONINTEREST INCOME | |||||||||
Branch fee income | 1,836 | 1,391 | 32.0 | ||||||
Service and loan fee income | 2,712 | 2,165 | 25.3 | ||||||
Gain on sale of SBA loans held for sale, net | 6.8 | ||||||||
Gain on sale of mortgage loans, net | 1,527 | 1,488 | 2.6 | ||||||
BOLI income | 42.3 | ||||||||
Net securities gains | 5,596 | 5,010 | *NM | ||||||
Other income | 1,629 | 1,635 | (6) | (0.4) | |||||
Total noninterest income | 14,779 | 8,469 | 6,310 | 74.5 | |||||
NONINTEREST EXPENSE | |||||||||
Compensation and benefits | 32,186 | 29,749 | 2,437 | 8.2 | |||||
Processing and communications | 4,193 | 3,473 | 20.7 | ||||||
Occupancy | 3,407 | 3,184 | 7.0 | ||||||
Furniture and equipment | 3,224 | 3,140 | 2.7 | ||||||
Professional services | 1,758 | 1,683 | 4.5 | ||||||
Advertising | 1,682 | 1,611 | 4.4 | ||||||
Loan related expenses | 1,138 | (250) | (22.0) | ||||||
Deposit insurance | 1,174 | 1,100 | 6.7 | ||||||
Director fees | 1,293 | 35.3 | |||||||
Other expenses | 2,554 | 2,707 | (153) | (5.7) | |||||
Total noninterest expense | 52,359 | 48,741 | 3,618 | 7.4 | |||||
Income before provision for income taxes | 75,512 | 54,390 | 21,122 | 38.8 | |||||
Provision for income taxes | 17,561 | 12,940 | 4,621 | 35.7 | |||||
Net income | $ | 57,951 | $ | 41,450 | $ | 16,501 | 39.8 | % | |
Effective tax rate | 23.3 | % | 23.8 | % | |||||
Net income per common share - Basic | $ | 5.78 | $ | 4.13 | |||||
Net income per common share - Diluted | 5.67 | 4.06 | |||||||
Weighted average common shares outstanding - Basic | 10,033 | 10,031 | |||||||
Weighted average common shares outstanding - Diluted | 10,223 | 10,202 | |||||||
*NM=Not meaningful | |||||||||
UNITY BANCORP, INC.
QUARTER TO DATE NET INTEREST MARGIN
For the three months ended | ||||||||||||||||
(Dollar amounts in thousands, interest amounts and | December 31, 2025 | December 31, 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 | $ | 66,840 | $ | 4.00 | % | $ | 40,656 | $ | 4.73 | % | ||||||
FHLB stock | 6,859 | 7.67 | 7,303 | 8.96 | ||||||||||||
Securities: | ||||||||||||||||
Taxable | 128,384 | 1,561 | 4.86 | 142,096 | 1,809 | 5.09 | ||||||||||
Tax-exempt | 1,474 | 5.67 | 1,588 | 4.47 | ||||||||||||
Total securities (A) | 129,858 | 1,582 | 4.87 | 143,684 | 1,826 | 5.09 | ||||||||||
Loans: | ||||||||||||||||
SBA loans | 45,686 | 1,037 | 9.08 | 53,258 | 1,101 | 8.27 | ||||||||||
Commercial loans | 1,487,472 | 25,626 | 6.74 | 1,233,532 | 20,310 | 6.44 | ||||||||||
Commercial construction loans | 131,268 | 2,666 | 7.95 | 146,461 | 3,190 | 8.52 | ||||||||||
Residential mortgage loans | 680,679 | 10,838 | 6.37 | 622,623 | 9,578 | 6.15 | ||||||||||
Consumer loans | 84,318 | 1,524 | 7.07 | 73,087 | 1,379 | 7.39 | ||||||||||
Residential construction loans | 74,915 | 1,791 | 9.35 | 92,648 | 2,232 | 9.43 | ||||||||||
Total loans (B) | 2,504,338 | 43,482 | 6.79 | 2,221,609 | 37,790 | 6.66 | ||||||||||
Total interest-earning assets | $ | 2,707,895 | $ | 45,871 | 6.72 | % | $ | 2,413,252 | $ | 40,264 | 6.64 | % | ||||
Noninterest-earning assets: | ||||||||||||||||
Cash and due from banks | 23,135 | 23,089 | ||||||||||||||
Allowance for credit losses | (30,791) | (27,292) | ||||||||||||||
Other assets | 91,977 | 92,772 | ||||||||||||||
Total noninterest-earning assets | 84,321 | 88,569 | ||||||||||||||
Total assets | $ | 2,792,216 | $ | 2,501,821 | ||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||
Interest-bearing demand deposits | $ | 391,005 | $ | 2,009 | 2.04 | % | $ | 325,151 | $ | 1,653 | 2.02 | % | ||||
Savings deposits | 546,025 | 3,165 | 2.30 | 510,725 | 2,909 | 2.27 | ||||||||||
Brokered deposits | 231,956 | 2,033 | 3.48 | 218,755 | 1,896 | 3.45 | ||||||||||
Time deposits | 687,058 | 6,350 | 3.67 | 579,519 | 6,200 | 4.26 | ||||||||||
Total interest-bearing deposits | 1,856,044 | 13,557 | 2.90 | 1,634,150 | 12,658 | 3.08 | ||||||||||
Borrowed funds and subordinated debentures | 100,689 | 3.66 | 115,314 | 1,116 | 3.79 | |||||||||||
Total interest-bearing liabilities | $ | 1,956,733 | $ | 14,499 | 2.94 | % | $ | 1,749,464 | $ | 13,774 | 3.13 | % | ||||
Noninterest-bearing liabilities: | ||||||||||||||||
Noninterest-bearing demand deposits | 462,977 | 431,034 | ||||||||||||||
Other liabilities | 33,026 | 31,032 | ||||||||||||||
Total noninterest-bearing liabilities | 496,003 | 462,066 | ||||||||||||||
Total shareholders' equity | 339,480 | 290,291 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 2,792,216 | $ | 2,501,821 | ||||||||||||
Net interest spread | $ | 31,372 | 3.78 | % | $ | 26,490 | 3.51 | % | ||||||||
Tax-equivalent basis adjustment | (3) | - | ||||||||||||||
Net interest income | $ | 31,369 | $ | 26,490 | ||||||||||||
Net interest margin | 4.60 | % | 4.37 | % | ||||||||||||
- 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.
- 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 | December 31, 2025 | September 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 | $ | 66,840 | $ | 4.00 | % | $ | 42,014 | $ | 4.46 | % | ||||||
FHLB stock | 6,859 | 7.67 | 7,588 | 6.31 | ||||||||||||
Securities: | ||||||||||||||||
Taxable | 128,384 | 1,561 | 4.86 | 135,170 | 1,735 | 5.14 | ||||||||||
Tax-exempt | 1,474 | 5.67 | 1,460 | 6.43 | ||||||||||||
Total securities (A) | 129,858 | 1,582 | 4.87 | 136,630 | 1,759 | 5.15 | ||||||||||
Loans: | ||||||||||||||||
SBA loans | 45,686 | 1,037 | 9.08 | 46,001 | 8.38 | |||||||||||
Commercial loans | 1,487,472 | 25,626 | 6.74 | 1,441,447 | 24,853 | 6.75 | ||||||||||
Commercial construction loans | 131,268 | 2,666 | 7.95 | 111,015 | 2,344 | 8.26 | ||||||||||
Residential mortgage loans | 680,679 | 10,838 | 6.37 | 674,260 | 10,749 | 6.38 | ||||||||||
Consumer loans | 84,318 | 1,524 | 7.07 | 82,851 | 1,469 | 6.94 | ||||||||||
Residential construction loans | 74,915 | 1,791 | 9.35 | 68,056 | 1,636 | 9.41 | ||||||||||
Total loans (B) | 2,504,338 | 43,482 | 6.79 | 2,423,630 | 42,015 | 6.78 | ||||||||||
Total interest-earning assets | $ | 2,707,895 | $ | 45,871 | 6.72 | % | $ | 2,609,862 | $ | 44,367 | 6.74 | % | ||||
Noninterest-earning assets: | ||||||||||||||||
Cash and due from banks | 23,135 | 23,335 | ||||||||||||||
Allowance for credit losses | (30,791) | (29,641) | ||||||||||||||
Other assets | 91,977 | 98,914 | ||||||||||||||
Total noninterest-earning assets | 84,321 | 92,608 | ||||||||||||||
Total assets | $ | 2,792,216 | $ | 2,702,470 | ||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||
Interest-bearing demand deposits | $ | 391,005 | $ | 2,009 | 2.04 | % | $ | 363,353 | $ | 1,998 | 2.18 | % | ||||
Savings deposits | 546,025 | 3,165 | 2.30 | 510,616 | 3,177 | 2.47 | ||||||||||
Brokered deposits | 231,956 | 2,033 | 3.48 | 230,728 | 2,003 | 3.44 | ||||||||||
Time deposits | 687,058 | 6,350 | 3.67 | 665,691 | 6,247 | 3.72 | ||||||||||
Total interest-bearing deposits | 1,856,044 | 13,557 | 2.90 | 1,770,388 | 13,425 | 3.01 | ||||||||||
Borrowed funds and subordinated debentures | 100,689 | 3.66 | 118,350 | 1,080 | 3.57 | |||||||||||
Total interest-bearing liabilities | $ | 1,956,733 | $ | 14,499 | 2.94 | % | $ | 1,888,738 | $ | 14,505 | 3.05 | % | ||||
Noninterest-bearing liabilities: | ||||||||||||||||
Noninterest-bearing demand deposits | 462,977 | 453,140 | ||||||||||||||
Other liabilities | 33,026 | 32,741 | ||||||||||||||
Total noninterest-bearing liabilities | 496,003 | 485,881 | ||||||||||||||
Total shareholders' equity | 339,480 | 327,851 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 2,792,216 | $ | 2,702,470 | ||||||||||||
Net interest spread | $ | 31,372 | 3.78 | % | $ | 29,862 | 3.69 | % | ||||||||
Tax-equivalent basis adjustment | (3) | (6) | ||||||||||||||
Net interest income | $ | 31,369 | $ | 29,856 | ||||||||||||
Net interest margin | 4.60 | % | 4.54 | % | ||||||||||||
- 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.
- 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 years ended | ||||||||||||||||
(Dollar amounts in thousands, interest amounts and | December 31, 2025 | December 31, 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 | $ | 45,865 | $ | 1,964 | 4.28 | % | $ | 38,491 | $ | 2,033 | 5.28 | % | ||||
FHLB stock | 7,382 | 7.66 | 8,440 | 9.34 | ||||||||||||
Securities: | ||||||||||||||||
Taxable | 136,129 | 6,818 | 5.01 | 139,800 | 7,312 | 5.23 | ||||||||||
Tax-exempt | 1,499 | 5.55 | 1,599 | 4.49 | ||||||||||||
Total securities (A) | 137,628 | 6,901 | 5.01 | 141,399 | 7,384 | 5.22 | ||||||||||
Loans: | ||||||||||||||||
SBA loans | 47,478 | 3,790 | 7.87 | 56,307 | 4,887 | 8.56 | ||||||||||
Commercial loans | 1,405,106 | 95,144 | 6.68 | 1,186,277 | 75,699 | 6.28 | ||||||||||
Commercial construction loans | 124,234 | 10,340 | 8.21 | 134,806 | 12,074 | 8.81 | ||||||||||
Residential mortgage loans | 663,372 | 41,925 | 6.32 | 625,365 | 37,770 | 6.04 | ||||||||||
Consumer loans | 81,177 | 5,830 | 7.08 | 71,010 | 5,607 | 7.77 | ||||||||||
Residential construction loans | 74,933 | 7,181 | 9.45 | 108,558 | 9,497 | 8.61 | ||||||||||
Total loans (B) | 2,396,300 | 164,210 | 6.76 | 2,182,323 | 145,534 | 6.56 | ||||||||||
Total interest-earning assets | $ | 2,587,175 | $ | 173,640 | 6.71 | % | $ | 2,370,653 | $ | 155,740 | 6.57 | % | ||||
Noninterest-earning assets: | ||||||||||||||||
Cash and due from banks | 22,798 | 23,396 | ||||||||||||||
Allowance for credit losses | (28,999) | (26,492) | ||||||||||||||
Other assets | 94,422 | 92,687 | ||||||||||||||
Total noninterest-earning assets | 88,221 | 89,591 | ||||||||||||||
Total assets | $ | 2,675,396 | $ | 2,460,244 | ||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||
Interest-bearing demand deposits | $ | 362,811 | $ | 7,528 | 2.07 | % | $ | 326,943 | $ | 7,176 | 2.19 | % | ||||
Savings deposits | 509,892 | 11,652 | 2.29 | 512,405 | 13,006 | 2.54 | ||||||||||
Brokered deposits | 220,910 | 7,608 | 3.44 | 227,070 | 8,412 | 3.70 | ||||||||||
Time deposits | 668,405 | 25,571 | 3.83 | 535,297 | 22,918 | 4.28 | ||||||||||
Total interest-bearing deposits | 1,762,018 | 52,359 | 2.97 | 1,601,715 | 51,512 | 3.22 | ||||||||||
Borrowed funds and subordinated debentures | 114,047 | 4,236 | 3.66 | 141,489 | 5,615 | 3.90 | ||||||||||
Total interest-bearing liabilities | $ | 1,876,065 | $ | 56,595 | 3.02 | % | $ | 1,743,204 | $ | 57,127 | 3.28 | % | ||||
Noninterest-bearing liabilities: | ||||||||||||||||
Noninterest-bearing demand deposits | 446,081 | 411,148 | ||||||||||||||
Other liabilities | 32,524 | 29,421 | ||||||||||||||
Total noninterest-bearing liabilities | 478,605 | 440,569 | ||||||||||||||
Total shareholders' equity | 320,726 | 276,471 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 2,675,396 | $ | 2,460,244 | ||||||||||||
Net interest spread | $ | 117,045 | 3.69 | % | $ | 98,613 | 3.29 | % | ||||||||
Tax-equivalent basis adjustment | (12) | (2) | ||||||||||||||
Net interest income | $ | 117,033 | $ | 98,611 | ||||||||||||
Net interest margin | 4.52 | % | 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.
QUARTERLY ALLOWANCE FOR CREDIT LOSSES AND ASSET QUALITY SCHEDULES
Amounts in thousands, except percentages | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | |||||
ALLOWANCE FOR CREDIT LOSSES: | ||||||||||
Balance, beginning of period | $ | 30,245 | $ | 29,012 | $ | 27,651 | $ | 26,788 | $ | 27,002 |
Provision for credit losses on loans | 2,208 | 1,409 | 1,725 | 1,358 | ||||||
32,453 | 30,421 | 29,376 | 28,146 | 27,472 | ||||||
Less: Chargeoffs | ||||||||||
SBA loans | ||||||||||
Commercial loans | - | - | ||||||||
Residential mortgage loans | ||||||||||
Consumer loans | ||||||||||
Residential construction loans | - | - | - | - | - | |||||
Total chargeoffs | ||||||||||
Add: Recoveries | ||||||||||
SBA loans | ||||||||||
Commercial loans | ||||||||||
Residential mortgage loans | - | - | - | - | - | |||||
Consumer loans | ||||||||||
Residential construction loans | - | - | - | - | - | |||||
Total recoveries | ||||||||||
Net chargeoffs | (111) | (176) | (364) | (495) | (684) | |||||
Balance, end of period | $ | 32,342 | $ | 30,245 | $ | 29,012 | $ | 27,651 | $ | 26,788 |
ASSET QUALITY INFORMATION: | ||||||||||
Nonaccrual loans: | ||||||||||
SBA loans | $ | 1,751 | $ | 4,225 | $ | 4,177 | $ | 3,231 | $ | 3,850 |
Commercial loans | 18,473 | 4,006 | 3,512 | 4,821 | 2,974 | |||||
Residential mortgage loans | 8,173 | 11,174 | 7,980 | 8,622 | 5,711 | |||||
Consumer loans | 1,268 | - | - | - | ||||||
Residential construction loans | ||||||||||
Total nonaccrual loans | 29,836 | 20,514 | 15,840 | 16,845 | 13,082 | |||||
Debt securities available for sale, net of valuation allowance | - | - | - | 1,145 | 1,964 | |||||
OREO | 1,472 | - | - | - | - | |||||
Nonaccrual assets | 31,308 | 20,514 | 15,840 | 17,990 | 15,046 | |||||
Loans 90 days past due & still accruing | $ | - | $ | $ | 2,876 | $ | 1,123 | $ | ||
Nonaccrual loans to total loans | 1.17 | % | 0.83 | % | 0.66 | % | 0.72 | % | 0.58 | % |
Nonaccrual assets to total assets | 1.06 | 0.71 | 0.54 | 0.65 | 0.57 | |||||
Allowance for credit losses to: | ||||||||||
Total loans at quarter end | 1.27 | % | 1.23 | % | 1.22 | % | 1.18 | % | 1.18 | % |
Total nonaccrual loans | 108.40 | 147.44 | 183.16 | 164.15 | 204.77 | |||||
UNITY BANCORP, INC.
QUARTERLY FINANCIAL DATA
(In thousands, except %'s, employee, office and per share amounts) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | |||||||
SUMMARY OF INCOME: | ||||||||||||
Total interest income | $ | 45,868 | $ | 44,361 | $ | 42,600 | $ | 40,799 | $ | 40,264 | ||
Total interest expense | 14,499 | 14,505 | 14,043 | 13,548 | 13,774 | |||||||
Net interest income | 31,369 | 29,856 | 28,557 | 27,251 | 26,490 | |||||||
Provision (Release) for credit losses | 2,258 | (175) | 1,316 | 1,300 | ||||||||
Net interest income after provision for credit losses | 29,111 | 29,314 | 28,732 | 25,935 | 25,190 | |||||||
Total noninterest income | 3,898 | 2,967 | 5,815 | 2,099 | 1,916 | |||||||
Total noninterest expense | 13,315 | 13,415 | 13,019 | 12,610 | 12,617 | |||||||
Income before provision for income taxes | 19,694 | 18,866 | 21,528 | 15,424 | 14,489 | |||||||
Provision for income taxes | 4,222 | 4,476 | 5,037 | 3,826 | 2,984 | |||||||
Net income | $ | 15,472 | $ | 14,390 | $ | 16,491 | $ | 11,598 | $ | 11,505 | ||
Net income per common share - Basic | $ | 1.55 | $ | 1.43 | $ | 1.64 | $ | 1.16 | $ | 1.15 | ||
Net income per common share - Diluted | 1.52 | 1.41 | 1.61 | 1.13 | 1.13 | |||||||
COMMON SHARE DATA: | ||||||||||||
Market price per share | $ | 51.72 | $ | 48.87 | $ | 47.08 | $ | 40.70 | $ | 43.61 | ||
Dividends paid | 0.15 | 0.15 | 0.14 | 0.14 | 0.13 | |||||||
Book value per common share | 34.63 | 33.26 | 31.88 | 30.38 | 29.48 | |||||||
Weighted average common shares outstanding - Basic | 10,008 | 10,036 | 10,033 | 10,054 | 10,002 | |||||||
Weighted average common shares outstanding - Diluted | 10,195 | 10,233 | 10,212 | 10,247 | 10,204 | |||||||
Issued common shares | 10,048 | 11,681 | 11,672 | 11,666 | 11,616 | |||||||
Outstanding common shares | 9,982 | 10,041 | 10,032 | 10,076 | 10,026 | |||||||
Treasury shares | 1,640 | 1,640 | 1,590 | 1,590 | ||||||||
QUARTERLY PERFORMANCE RATIOS (ANNUALIZED): | ||||||||||||
Return on average assets | 2.20 | % | 2.11 | % | 2.51 | % | 1.83 | % | 1.83 | % | ||
Return on average equity | 18.08 | 17.41 | 21.15 | 15.56 | 15.77 | |||||||
Efficiency ratio** | 39.52 | 41.47 | 42.31 | 42.89 | 44.44 | |||||||
Noninterest expense to average assets | 1.89 | 1.97 | 1.98 | 1.99 | 2.01 | |||||||
BALANCE SHEET DATA: | ||||||||||||
Total assets | $ | 2,966,652 | $ | 2,876,365 | $ | 2,928,523 | $ | 2,767,943 | $ | 2,654,017 | ||
Total securities | 124,015 | 131,252 | 139,348 | 142,092 | 145,028 | |||||||
Total loans | 2,544,713 | 2,468,527 | 2,382,594 | 2,345,130 | 2,260,657 | |||||||
Allowance for credit losses | 32,342 | 30,245 | 29,012 | 27,651 | 26,788 | |||||||
Total deposits | 2,324,061 | 2,267,484 | 2,187,366 | 2,175,398 | 2,100,313 | |||||||
Total shareholders' equity | 345,631 | 334,023 | 319,840 | 306,142 | 295,583 | |||||||
TAX EQUIVALENT YIELDS AND RATES: | ||||||||||||
Interest-earning assets | 6.72 | % | 6.74 | % | 6.70 | % | 6.68 | % | 6.64 | % | ||
Interest-bearing liabilities | 2.94 | 3.05 | 3.05 | 3.04 | 3.13 | |||||||
Net interest spread | 3.78 | 3.69 | 3.66 | 3.64 | 3.51 | |||||||
Net interest margin | 4.60 | 4.54 | 4.49 | 4.46 | 4.37 | |||||||
CREDIT QUALITY: | ||||||||||||
Nonaccrual assets | $ | 31,308 | $ | 20,514 | $ | 15,840 | $ | 17,990 | $ | 15,046 | ||
QTD annualized net chargeoffs to QTD average loans | (0.02) | % | (0.03) | % | (0.06) | % | (0.09) | % | (0.12) | % | ||
Allowance for credit losses to total loans | 1.27 | 1.23 | 1.22 | 1.18 | 1.18 | |||||||
Nonaccrual loans to total loans | 1.17 | 0.83 | 0.66 | 0.72 | 0.58 | |||||||
Nonaccrual assets to total assets | 1.06 | 0.71 | 0.54 | 0.65 | 0.57 | |||||||
UNITY BANCORP CAPITAL RATIOS: | ||||||||||||
Total equity to total assets | 11.65 | % | 11.61 | % | 10.92 | % | 11.06 | % | 11.14 | % | ||
Leverage ratio | 12.72 | 12.71 | 12.50 | 12.32 | 12.22 | |||||||
Common Equity Tier 1 Capital Ratio | 14.45 | 14.45 | 13.96 | 13.87 | 13.90 | |||||||
Risk-based Tier 1 Capital Ratio | 14.87 | 14.88 | 14.39 | 14.33 | 14.37 | |||||||||||
Risk-based Total Capital Ratio | 16.12 | 16.13 | 15.65 | 15.58 | 15.62 | |||||||||||
Number of banking offices | ||||||||||||||||
Employee Full-Time Equivalent | ||||||||||||||||
** 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 | December 31, 2025 | % | December 31, 2024 | % | ||
Loans Held for Sale | $ | 9,490 | 0.4% | $ | 12,163 | 0.5% |
SBA Loans | 34,259 | 1.3% | 38,309 | 1.7% | ||
Commercial Loans | ||||||
SBA 504 | 43,802 | 1.7% | 48,479 | 2.1% | ||
Commercial & industrial | 183,163 | 7.2% | 147,186 | 6.5% | ||
Commercial mortgage - owner occupied | 660,427 | 26.0% | 577,541 | 25.6% | ||
Commercial mortgage - nonowner occupied | 531,954 | 20.9% | 428,600 | 19.0% | ||
Other | 98,686 | 3.9% | 79,630 | 3.5% | ||
Total Commercial Loans | 1,518,032 | 59.7% | 1,281,436 | 56.7% | ||
Commercial Construction Loans | 147,215 | 5.8% | 130,193 | 5.8% | ||
Residential Mortgage Loans | ||||||
Primary residence | 472,482 | 18.6% | 427,738 | 18.9% | ||
Secondary residence | 71,656 | 2.8% | 65,063 | 2.9% | ||
Investor property | 133,083 | 5.2% | 138,126 | 6.1% | ||
Total Residential Mortgage Loans | 677,221 | 26.6% | 630,927 | 27.9% | ||
Consumer Loans | ||||||
Home equity | 82,488 | 3.2% | 73,223 | 3.2% | ||
Consumer other | 2,731 | 0.1% | 3,488 | 0.2% | ||
Total Consumer Loans | 85,219 | 3.3% | 76,711 | 3.4% | ||
Residential Construction Loans | 73,277 | 2.9% | 90,918 | 4.0% | ||
Total Gross Loans | $ | 2,544,713 | 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) | December 31, 2025 | September 30, 2025 | December 31, 2024 | ||||
Adjusted net income: | |||||||
Net income (GAAP) | $ | 15,472 | $ | 14,390 | $ | 11,505 | |
Non-recurring transactions: | |||||||
Less: Release of credit losses, securities | - | (787) | - | ||||
Less: Net securities gains, unrealized | (1,475) | (218) | - | ||||
Add: Adjusted release (provision) for income taxes | - | ||||||
Adjusted net income (non-GAAP) | $ | 14,351 | $ | 13,623 | $ | 11,505 | |
Adjusted net income per common share: | |||||||
Weighted average common shares outstanding - Basic | 10,008 | 10,036 | 10,002 | ||||
Weighted average common shares outstanding - Diluted | 10,195 | 10,233 | 10,204 | ||||
Net income per common share - Basic (GAAP) | $ | 1.55 | $ | 1.43 | $ | 1.15 | |
Net income per common share - Diluted (GAAP) | 1.52 | 1.41 | 1.13 | ||||
Adjusted net income per common share - Basic (non-GAAP) | $ | 1.43 | $ | 1.36 | $ | - | |
Adjusted net income per common share - Diluted (non-GAAP) | 1.41 | 1.33 | - | ||||
Adjusted return on average assets: | |||||||
Total QTD average assets | 2,792,216 | 2,702,470 | 2,501,821 | ||||
Return on average assets (GAAP) | 2.20 | % | 2.11 | % | 1.83 | % | |
Adjusted return on average assets (non-GAAP) | 2.04 | 2.00 | - | ||||
Adjusted return on average equity: | |||||||
Total QTD average equity | 339,480 | 327,851 | 290,291 | ||||
Return on average equity (GAAP) | 18.08 | % | 17.41 | % | 15.77 | % | |
Adjusted return on average equity (non-GAAP) | 16.77 | 16.49 | - | ||||