Unity Bancorp Inc.
07/14/2026 | Press release | Distributed by Public on 07/14/2026 04:04
James Davies, FSVP & CFO (Form 8-K)
|
James Davies, FSVP & CFO |
|
|
July 14, 2026 |
(908) 713-4330 |
Unity Bancorp Reports Quarterly Earnings of $14.5 Million
James A. Hughes, CEO, commented on the financial results:
"We are pleased to announce that Unity Bancorp, Inc. delivered another strong quarter, reflecting the strength of our relationship-based banking model. During the second quarter, we generated net income of $14.5 million, or $1.42 per diluted share, producing a 2.01% return on average assets and a 15.86% return on average equity. Strong core operating performance, a 4.56% net interest margin, balanced loan and deposit growth, and robust capital and liquidity levels all contributed to another successful quarter. These accomplishments underscore our ability to deliver consistent earnings, prudently manage risk, and support the financial needs of the communities we serve.
While the macroeconomic environment continues to present uncertainty, including the ongoing effects of elevated interest rates and changing economic conditions, we remain encouraged by the resilience of the New Jersey economy and housing market. Home values have remained stable and customer activity continues to demonstrate the underlying strength of the communities we serve. These factors have supported sound credit performance and continued demand for both residential and commercial banking services.
We remain encouraged by the level of customer activity and business development opportunities across our markets. Loan pipelines remain healthy, deposit gathering efforts continue to gain traction, and our investments in technology and talent are enhancing our ability to serve customers more efficiently and effectively. As we look to the second half of 2026, we believe Unity is well positioned to continue delivering profitable growth, maintaining strong asset quality, and creating long-term value for our shareholders."
Clinton, NJ -- Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $14.5 million, or $1.42 per diluted share, for the quarter ended June 30, 2026, compared to net income of $14.3 million, or $1.40 per diluted share for the quarter ended March 31, 2026. For the six months ended June 30, 2026, Unity Bancorp reported net income of $28.8 million, or $2.82 per diluted share, compared to net income of $28.1 million, or $2.74 per diluted share, for the six months ended June 30, 2025.
Quarterly Earnings Highlights
•
Net interest income, the primary driver of earnings, was $31.8 million for the quarter ended June 30, 2026, an increase of $1.1 million, as compared to $30.7 million for the quarter ended March 31, 2026. Net interest margin ("NIM") increased 3 basis points to 4.56% for the quarter ended June 30, 2026, compared to the quarter ended March 31, 2026. The increase in net interest income was primarily due to day count and increased yields on interest-earning assets.
•
The provision for credit losses on loans was $1.0 million for the quarters ended June 30, 2026 and March 31, 2026. The provision in the current quarter was primarily driven by loan growth.
•
Noninterest income was $1.9 million for the quarter ended June 30, 2026, compared to $2.9 million for the quarter ended March 31, 2026. The $1.0 million decrease was primarily due to larger unrealized losses recognized, decreased loan fee income and lower gain on sale of SBA and mortgage loans. The increased unrealized losses are due to the Company's investment in Patriot National Bancorp, Inc., of which the Company held approximately 2.2 million shares as of June 30, 2026.
o
Subsequent to June 30, 2026, Patriot National Bancorp, Inc. publicly announced the termination of its formal agreement with the OCC and the opening of a new banking office in Beverly Hills, California. These developments did not impact the Company's second quarter financial results.
•
Noninterest expense was $13.9 million for the quarter ended June 30, 2026, compared to $14.1 million for the quarter ended March 31, 2026. The decrease was primarily due to decreased occupancy and loan related expenses, partially offset by increased furniture & equipment expenses.
•
The effective tax rate was 22.4% for the quarter ended June 30, 2026, compared to 22.7% for the quarter ended March 31, 2026. As part of the Company's ongoing initiative to prudently reduce its tax burden and enhance after-tax earnings, Unity strategically invested in tax credit programs during the first half of 2026. During the second quarter of 2026, Unity purchased $2.6 million of state tax credits, resulting in $0.2 million of tax savings. Furthermore, during the first quarter of 2026, Unity purchased $5.1 million of federal tax credits, resulting in $0.4 million of tax savings.
Balance Sheet Highlights
•
Total gross loans increased $137.8 million, or 5.4%, from December 31, 2025, primarily due to increases in the commercial, residential construction and consumer loan categories.
•
As of June 30, 2026, the allowance for credit losses as a percentage of gross loans was 1.29%.
•
As of June 30, 2026, nonaccrual assets (including OREO) were $34.5 million, compared to $31.3 million as of December 31, 2025. The ratio of nonaccrual loans to total loans was 1.23% as of June 30, 2026. The ratio of nonaccrual assets to total assets was 1.08% as of June 30, 2026. During the fourth quarter of 2025, one $15.5 million commercial real estate relationship migrated to nonaccrual status. This isolated relationship accounts for nearly half of nonaccrual assets.
•
Total deposits increased $138.5 million, or 6.0%, from December 31, 2025. As of June 30, 2026, uninsured or uncollateralized deposits represented 21.8% of total deposits. The Company's deposit composition as of June 30, 2026, consisted of 19.8% in noninterest bearing demand deposits, 16.8% in interest-bearing demand deposits, 23.2%
in savings deposits and 40.2% in time deposits.
•
Borrowed funds increased $60.3 million from December 31, 2025. Borrowed funds were entirely comprised of borrowings from the FHLB.
•
Shareholders' equity was $371.8 million as of June 30, 2026, compared to $345.6 million as of December 31, 2025. The $26.2 million increase was primarily driven by 2026 earnings, partially offset by dividend payments. During the six months ended June 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 $37.02 as of June 30, 2026, compared to $34.63 as of December 31, 2025. This increase is primarily due to net income partially offset by dividends.
•
Below is a summary of Unity Bancorp's regulatory capital ratios. During the quarter ended June 30, 2026, risk-weighted assets increased $150.1 million driven by robust loan pipelines and originated Brokered CDs pending settlement.
o
The Leverage Ratio increased 45 basis points to 13.17% at June 30, 2026, compared to 12.72% at December 31, 2025.
o
The Common Equity Tier 1 Capital Ratio decreased 26 basis points to 14.19% at June 30, 2026, compared to 14.45% at December 31, 2025.
o
The Tier 1 Capital Ratio decreased 30 basis points to 14.57% at June 30, 2026, compared to 14.87% at December 31, 2025.
o
The Total Capital Ratio decreased 30 basis points to 15.82% at June 30, 2026, compared to 16.12% at December 31, 2025.
•
At June 30, 2026, the Company held $250.3 million of cash and cash equivalents. The Company also maintained approximately $421.8 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 125.4% of uninsured or uncollateralized deposits.
Other Highlights
•
In June 2026, Unity Bank, a wholly owned subsidiary of Unity Bancorp Inc., appointed Sara M. Sooy to its Board of Directors. Ms. Sooy brings significant banking, finance, governance, and public-sector leadership experience to the Bank's Board.
•
In June 2026, Unity Bank, a wholly owned subsidiary of Unity Bancorp Inc., appointed Alfred J. Gaburo to its Board of Directors. Mr. Gaburo brings more than three decades of experience in public affairs, government relations, economic development, and strategic advocacy to the Bank's Board.
•
In the second quarter of 2026, Unity Bank awarded $50 thousand in grants to local small businesses through the FHLBNY Small Business Recovery Grant Program. These grants assist small businesses in overcoming challenges posed by inflation, supply chain constraints, rising energy costs, and a volatile interest rate environment.
Unity Bancorp, Inc. is a financial services organization headquartered in Clinton, New Jersey, with approximately $3.2 billion in assets and $2.5 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, its employees and customers, and the impact of uncertain or changing political conditions or any current or future federal government shutdown and uncertainty regarding the federal government's debt limit or changes in fiscal, monetary, trade or regulatory policy, among other factors.
UNITY BANCORP, INC.
SUMMARY FINANCIAL HIGHLIGHTS
|
June 30, 2026 vs. |
||||||||||||||||||||||
|
(In thousands, except percentages and per |
March 31, 2026 |
June 30, 2025 |
||||||||||||||||||||
|
share amounts) |
June 30, 2026 |
March 31, 2026 |
June 30, 2025 |
% |
% |
|||||||||||||||||
|
BALANCE SHEET DATA |
||||||||||||||||||||||
|
Total assets |
$ |
3,194,313 |
$ |
3,027,327 |
$ |
2,928,523 |
5.5 |
% |
9.1 |
% |
||||||||||||
|
Total deposits |
2,462,549 |
2,379,140 |
2,187,366 |
3.5 |
12.6 |
|||||||||||||||||
|
Total gross loans |
2,682,494 |
2,601,656 |
2,382,594 |
3.1 |
12.6 |
|||||||||||||||||
|
Total securities |
119,300 |
115,268 |
139,348 |
3.5 |
(14.4 |
) |
||||||||||||||||
|
Total shareholders' equity |
371,813 |
358,095 |
319,840 |
3.8 |
16.2 |
|||||||||||||||||
|
Allowance for credit losses |
34,551 |
33,354 |
29,012 |
3.6 |
19.1 |
|||||||||||||||||
|
FINANCIAL DATA - QUARTER TO DATE |
||||||||||||||||||||||
|
Income before provision for income taxes |
$ |
18,652 |
$ |
18,487 |
$ |
21,528 |
0.9 |
(13.4 |
) |
|||||||||||||
|
Provision for income taxes |
4,180 |
4,199 |
5,037 |
(0.5 |
) |
(17.0 |
) |
|||||||||||||||
|
Net income |
$ |
14,472 |
$ |
14,288 |
$ |
16,491 |
1.3 |
(12.2 |
) |
|||||||||||||
|
Net income per common share - Basic |
$ |
1.44 |
$ |
1.43 |
$ |
1.64 |
0.7 |
(12.2 |
) |
|||||||||||||
|
Net income per common share - Diluted |
1.42 |
1.40 |
1.61 |
1.4 |
(11.8 |
) |
||||||||||||||||
|
PERFORMANCE RATIOS - QUARTER TO DATE (ANNUALIZED) |
||||||||||||||||||||||
|
Return on average assets |
2.01 |
% |
2.04 |
% |
2.51 |
% |
||||||||||||||||
|
Return on average equity |
15.86 |
16.38 |
21.15 |
|||||||||||||||||||
|
Efficiency ratio** |
40.50 |
41.77 |
42.31 |
|||||||||||||||||||
|
Cost of funds |
2.38 |
2.38 |
2.46 |
|||||||||||||||||||
|
Net interest margin |
4.56 |
4.53 |
4.49 |
|||||||||||||||||||
|
Noninterest expense to average assets |
1.93 |
2.01 |
1.98 |
|||||||||||||||||||
|
FINANCIAL DATA - YEAR TO DATE |
||||||||||||||||||||||
|
Income before provision for income taxes |
$ |
37,138 |
$ |
36,952 |
0.5 |
|||||||||||||||||
|
Provision for income taxes |
8,378 |
8,863 |
(5.5 |
) |
||||||||||||||||||
|
Net income |
$ |
28,760 |
$ |
28,089 |
2.4 |
|||||||||||||||||
|
Net income per common share - Basic |
$ |
2.87 |
$ |
2.79 |
2.9 |
|||||||||||||||||
|
Net income per common share - Diluted |
2.82 |
2.74 |
2.9 |
|||||||||||||||||||
|
PERFORMANCE RATIOS - YEAR TO DATE |
||||||||||||||||||||||
|
Return on average assets |
2.02 |
% |
2.18 |
% |
||||||||||||||||||
|
Return on average equity |
16.11 |
18.42 |
||||||||||||||||||||
|
Efficiency ratio** |
41.13 |
42.59 |
||||||||||||||||||||
|
Cost of funds |
2.38 |
2.46 |
||||||||||||||||||||
|
Net interest margin |
4.54 |
4.48 |
||||||||||||||||||||
|
Noninterest expense to average assets |
1.97 |
1.99 |
||||||||||||||||||||
|
SHARE INFORMATION |
||||||||||||||||||||||
|
Market price per share |
$ |
58.69 |
$ |
51.83 |
$ |
47.08 |
13.2 |
24.7 |
||||||||||||||
|
Dividends paid (QTD) |
0.16 |
0.16 |
0.14 |
- |
14.3 |
|||||||||||||||||
|
Book value per common share |
37.02 |
35.66 |
31.88 |
3.8 |
16.1 |
|||||||||||||||||
|
Average diluted shares outstanding (QTD) |
10,221 |
10,199 |
10,212 |
0.2 |
0.1 |
|||||||||||||||||
|
UNITY BANCORP CAPITAL RATIOS |
||||||||||||||||||||||
|
Total equity to total assets |
11.64 |
% |
11.83 |
% |
10.92 |
% |
(1.6 |
) |
6.6 |
|||||||||||||
|
Leverage ratio |
13.17 |
12.93 |
12.50 |
1.9 |
5.4 |
|||||||||||||||||
|
Common Equity Tier 1 Capital Ratio |
14.19 |
14.50 |
13.96 |
(2.1 |
) |
1.6 |
||||||||||||||||
|
Risk-based Tier 1 Capital Ratio |
14.57 |
14.91 |
14.39 |
(2.3 |
) |
1.3 |
||||||||||||||||
|
Risk-based Total Capital Ratio |
15.82 |
16.16 |
15.65 |
(2.1 |
) |
1.1 |
||||||||||||||||
|
CREDIT QUALITY AND RATIOS |
||||||||||||||||||||||
|
Nonaccrual assets |
$ |
34,489 |
$ |
32,092 |
$ |
15,840 |
7.5 |
117.7 |
||||||||||||||
|
QTD annualized net recoveries (chargeoffs) to QTD average loans |
0.03 |
% |
(0.01 |
)% |
(0.06 |
)% |
||||||||||||||||
|
Allowance for credit losses to total loans |
1.29 |
1.28 |
1.22 |
|||||||||||||||||||
|
Nonaccrual loans to total loans |
1.23 |
1.18 |
0.66 |
|||||||||||||||||||
|
Nonaccrual assets to total assets |
1.08 |
1.06 |
0.54 |
|||||||||||||||||||
|
** 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
|
June 30, 2026 vs. |
|||||||||||||||||||||||
|
December 31, 2025 |
June 30, 2025 |
||||||||||||||||||||||
|
(In thousands, except percentages) |
June 30, 2026 |
December 31, 2025 |
June 30, 2025 |
% |
% |
||||||||||||||||||
|
ASSETS |
|||||||||||||||||||||||
|
Cash and due from banks |
$ |
28,267 |
$ |
19,841 |
$ |
26,045 |
42.5 |
% |
8.5 |
% |
|||||||||||||
|
Interest-bearing deposits |
222,054 |
196,678 |
267,688 |
12.9 |
(17.0 |
) |
|||||||||||||||||
|
Cash and cash equivalents |
250,321 |
216,519 |
293,733 |
15.6 |
(14.8 |
) |
|||||||||||||||||
|
Securities: |
|||||||||||||||||||||||
|
Debt securities available for sale, at market value, net of valuation allowance |
67,221 |
70,870 |
92,491 |
(5.1 |
) |
(27.3 |
) |
||||||||||||||||
|
Debt securities held to maturity, at book value |
37,707 |
36,576 |
36,434 |
3.1 |
3.5 |
||||||||||||||||||
|
Equity securities, at market value |
14,372 |
16,569 |
10,423 |
(13.3 |
) |
37.9 |
|||||||||||||||||
|
Total securities |
119,300 |
124,015 |
139,348 |
(3.8 |
) |
(14.4 |
) |
||||||||||||||||
|
Loans: |
|||||||||||||||||||||||
|
Loans held for sale |
9,458 |
9,490 |
13,352 |
(0.3 |
) |
(29.2 |
) |
||||||||||||||||
|
SBA loans held for investment |
35,816 |
34,259 |
38,059 |
4.5 |
(5.9 |
) |
|||||||||||||||||
|
Commercial loans |
1,649,252 |
1,518,032 |
1,409,139 |
8.6 |
17.0 |
||||||||||||||||||
|
Commercial construction loans |
128,628 |
147,215 |
101,990 |
(12.6 |
) |
26.1 |
|||||||||||||||||
|
Residential mortgage loans |
668,502 |
677,221 |
666,560 |
(1.3 |
) |
0.3 |
|||||||||||||||||
|
Consumer loans |
94,757 |
85,219 |
82,564 |
11.2 |
14.8 |
||||||||||||||||||
|
Residential construction loans |
96,081 |
73,277 |
70,930 |
31.1 |
35.5 |
||||||||||||||||||
|
Total loans |
2,682,494 |
2,544,713 |
2,382,594 |
5.4 |
12.6 |
||||||||||||||||||
|
Allowance for credit losses |
(34,551 |
) |
(32,342 |
) |
(29,012 |
) |
6.8 |
19.1 |
|||||||||||||||
|
Net loans |
2,647,943 |
2,512,371 |
2,353,582 |
5.4 |
12.5 |
||||||||||||||||||
|
Premises and equipment, net |
17,878 |
18,022 |
18,561 |
(0.8 |
) |
(3.7 |
) |
||||||||||||||||
|
Bank owned life insurance ("BOLI") |
26,977 |
26,547 |
26,108 |
1.6 |
3.3 |
||||||||||||||||||
|
Deferred tax assets |
15,975 |
14,640 |
14,784 |
9.1 |
8.1 |
||||||||||||||||||
|
Federal Home Loan Bank ("FHLB") stock |
17,401 |
14,314 |
19,730 |
21.6 |
(11.8 |
) |
|||||||||||||||||
|
Accrued interest receivable |
12,988 |
12,896 |
12,411 |
0.7 |
4.6 |
||||||||||||||||||
|
Goodwill |
1,516 |
1,516 |
1,516 |
- |
- |
||||||||||||||||||
|
Other real estate owned ("OREO") |
1,472 |
1,472 |
- |
- |
*NM |
||||||||||||||||||
|
Prepaid expenses and other assets |
82,542 |
24,340 |
48,750 |
239.1 |
69.3 |
||||||||||||||||||
|
Total assets |
$ |
3,194,313 |
$ |
2,966,652 |
$ |
2,928,523 |
7.7 |
% |
9.1 |
% |
|||||||||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||||||||||||
|
Liabilities: |
|||||||||||||||||||||||
|
Deposits: |
|||||||||||||||||||||||
|
Noninterest-bearing demand |
$ |
487,132 |
$ |
465,596 |
$ |
464,610 |
4.6 |
% |
4.8 |
% |
|||||||||||||
|
Interest-bearing demand |
380,473 |
369,131 |
321,863 |
3.1 |
18.2 |
||||||||||||||||||
|
Savings |
566,649 |
535,044 |
505,706 |
5.9 |
12.1 |
||||||||||||||||||
|
Brokered deposits |
301,525 |
274,203 |
237,978 |
10.0 |
26.7 |
||||||||||||||||||
|
Time deposits |
726,770 |
680,087 |
657,209 |
6.9 |
10.6 |
||||||||||||||||||
|
Total deposits |
2,462,549 |
2,324,061 |
2,187,366 |
6.0 |
12.6 |
||||||||||||||||||
|
Borrowed funds |
316,123 |
255,774 |
377,107 |
23.6 |
(16.2 |
) |
|||||||||||||||||
|
Subordinated debentures |
10,310 |
10,310 |
10,310 |
- |
- |
||||||||||||||||||
|
Accrued interest payable |
2,758 |
2,138 |
1,463 |
29.0 |
88.5 |
||||||||||||||||||
|
Accrued expenses and other liabilities |
30,760 |
28,738 |
32,437 |
7.0 |
(5.2 |
) |
|||||||||||||||||
|
Total liabilities |
2,822,500 |
2,621,021 |
2,608,683 |
7.7 |
8.2 |
||||||||||||||||||
|
Shareholders' equity: |
|||||||||||||||||||||||
|
Common stock |
106,701 |
105,892 |
104,674 |
0.8 |
1.9 |
||||||||||||||||||
|
Retained earnings |
269,486 |
243,935 |
252,606 |
10.5 |
6.7 |
||||||||||||||||||
|
Treasury stock, at cost |
(3,425 |
) |
(3,101 |
) |
(35,515 |
) |
(10.4 |
) |
(90.4 |
) |
|||||||||||||
|
Accumulated other comprehensive loss |
(949 |
) |
(1,095 |
) |
(1,925 |
) |
(13.3 |
) |
(50.7 |
) |
|||||||||||||
|
Total shareholders' equity |
371,813 |
345,631 |
319,840 |
7.6 |
16.2 |
||||||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
3,194,313 |
$ |
2,966,652 |
$ |
2,928,523 |
7.7 |
% |
9.1 |
% |
|||||||||||||
|
Shares issued |
10,116 |
10,048 |
11,672 |
||||||||||||||||||||
|
Shares outstanding |
10,043 |
9,982 |
10,032 |
||||||||||||||||||||
|
Treasury shares |
73 |
66 |
1,640 |
||||||||||||||||||||
*NM=Not meaningful
UNITY BANCORP, INC.
QTD CONSOLIDATED STATEMENTS OF INCOME
|
June 30, 2026 vs. |
|||||||||||||||||||||||||||||||||
|
For the three months ended |
March 31, 2026 |
June 30, 2025 |
|||||||||||||||||||||||||||||||
|
(In thousands, except percentages and per share amounts) |
June 30, 2026 |
March 31, 2026 |
June 30, 2025 |
$ |
% |
$ |
% |
||||||||||||||||||||||||||
|
INTEREST INCOME |
|||||||||||||||||||||||||||||||||
|
Interest-bearing deposits |
$ |
455 |
$ |
558 |
$ |
487 |
$ |
(103 |
) |
(18.5 |
) |
% |
$ |
(32 |
) |
(6.6 |
) |
% |
|||||||||||||||
|
FHLB stock |
140 |
134 |
130 |
6 |
4.5 |
10 |
7.7 |
||||||||||||||||||||||||||
|
Securities: |
|||||||||||||||||||||||||||||||||
|
Taxable |
1,391 |
1,409 |
1,735 |
(18 |
) |
(1.3 |
) |
(344 |
) |
(19.8 |
) |
||||||||||||||||||||||
|
Tax-exempt |
24 |
18 |
17 |
6 |
33.3 |
7 |
41.2 |
||||||||||||||||||||||||||
|
Total securities |
1,415 |
1,427 |
1,752 |
(12 |
) |
(0.8 |
) |
(337 |
) |
(19.2 |
) |
||||||||||||||||||||||
|
Loans: |
|||||||||||||||||||||||||||||||||
|
SBA loans |
840 |
844 |
856 |
(4 |
) |
(0.5 |
) |
(16 |
) |
(1.9 |
) |
||||||||||||||||||||||
|
Commercial loans |
26,509 |
25,016 |
23,352 |
1,493 |
6.0 |
3,157 |
13.5 |
||||||||||||||||||||||||||
|
Commercial construction loans |
3,347 |
3,038 |
2,384 |
309 |
10.2 |
963 |
40.4 |
||||||||||||||||||||||||||
|
Residential mortgage loans |
10,411 |
10,913 |
10,390 |
(502 |
) |
(4.6 |
) |
21 |
0.2 |
||||||||||||||||||||||||
|
Consumer loans |
1,471 |
1,424 |
1,491 |
47 |
3.3 |
(20 |
) |
(1.3 |
) |
||||||||||||||||||||||||
|
Residential construction loans |
2,047 |
1,825 |
1,758 |
222 |
12.2 |
289 |
16.4 |
||||||||||||||||||||||||||
|
Total loans |
44,625 |
43,060 |
40,231 |
1,565 |
3.6 |
4,394 |
10.9 |
||||||||||||||||||||||||||
|
Total interest income |
46,635 |
45,179 |
42,600 |
1,456 |
3.2 |
4,035 |
9.5 |
||||||||||||||||||||||||||
|
INTEREST EXPENSE |
|||||||||||||||||||||||||||||||||
|
Interest-bearing demand deposits |
2,084 |
1,910 |
1,898 |
174 |
9.1 |
186 |
9.8 |
||||||||||||||||||||||||||
|
Savings deposits |
3,291 |
3,160 |
2,718 |
131 |
4.1 |
573 |
21.1 |
||||||||||||||||||||||||||
|
Brokered deposits |
2,247 |
2,267 |
1,786 |
(20 |
) |
(0.9 |
) |
461 |
25.8 |
||||||||||||||||||||||||
|
Time deposits |
6,282 |
6,128 |
6,560 |
154 |
2.5 |
(278 |
) |
(4.2 |
) |
||||||||||||||||||||||||
|
Borrowed funds and subordinated debentures |
904 |
984 |
1,081 |
(80 |
) |
(8.1 |
) |
(177 |
) |
(16.4 |
) |
||||||||||||||||||||||
|
Total interest expense |
14,808 |
14,449 |
14,043 |
359 |
2.5 |
765 |
5.4 |
||||||||||||||||||||||||||
|
Net interest income |
31,827 |
30,730 |
28,557 |
1,097 |
3.6 |
3,270 |
11.5 |
||||||||||||||||||||||||||
|
Provision for credit losses, loans |
1,040 |
1,043 |
1,725 |
(3 |
) |
(0.3 |
) |
(685 |
) |
(39.7 |
) |
||||||||||||||||||||||
|
Provision for credit losses, off-balance sheet |
127 |
5 |
136 |
122 |
*NM |
(9 |
) |
(6.6 |
) |
||||||||||||||||||||||||
|
Release of credit losses, securities |
- |
- |
(2,036 |
) |
- |
- |
2,036 |
*NM |
|||||||||||||||||||||||||
|
Net interest income after provision for credit losses |
30,660 |
29,682 |
28,732 |
978 |
3.3 |
1,928 |
6.7 |
||||||||||||||||||||||||||
|
NONINTEREST INCOME |
|||||||||||||||||||||||||||||||||
|
Branch fee income |
612 |
489 |
465 |
123 |
25.2 |
147 |
31.6 |
||||||||||||||||||||||||||
|
Service and loan fee income |
657 |
912 |
536 |
(255 |
) |
(28.0 |
) |
121 |
22.6 |
||||||||||||||||||||||||
|
Gain on sale of SBA loans held for sale, net |
213 |
427 |
163 |
(214 |
) |
(50.1 |
) |
50 |
30.7 |
||||||||||||||||||||||||
|
Gain on sale of mortgage loans, net |
406 |
500 |
435 |
(94 |
) |
(18.8 |
) |
(29 |
) |
(6.7 |
) |
||||||||||||||||||||||
|
BOLI income |
213 |
217 |
183 |
(4 |
) |
(1.8 |
) |
30 |
16.4 |
||||||||||||||||||||||||
|
Net securities (losses) gains |
(643 |
) |
(82 |
) |
3,600 |
(561 |
) |
*NM |
(4,243 |
) |
*NM |
||||||||||||||||||||||
|
Other income |
463 |
413 |
433 |
50 |
12.1 |
30 |
6.9 |
||||||||||||||||||||||||||
|
Total noninterest income |
1,921 |
2,876 |
5,815 |
(955 |
) |
(33.2 |
) |
(3,894 |
) |
(67.0 |
) |
||||||||||||||||||||||
|
NONINTEREST EXPENSE |
|||||||||||||||||||||||||||||||||
|
Compensation and benefits |
8,669 |
8,673 |
8,160 |
(4 |
) |
- |
509 |
6.2 |
|||||||||||||||||||||||||
|
Processing and communications |
1,131 |
1,146 |
980 |
(15 |
) |
(1.3 |
) |
151 |
15.4 |
||||||||||||||||||||||||
|
Occupancy |
842 |
987 |
809 |
(145 |
) |
(14.7 |
) |
33 |
4.1 |
||||||||||||||||||||||||
|
Furniture and equipment |
831 |
715 |
787 |
116 |
16.2 |
44 |
5.6 |
||||||||||||||||||||||||||
|
Professional services |
456 |
488 |
350 |
(32 |
) |
(6.6 |
) |
106 |
30.3 |
||||||||||||||||||||||||
|
Advertising |
442 |
393 |
456 |
49 |
12.5 |
(14 |
) |
(3.1 |
) |
||||||||||||||||||||||||
|
Loan related expenses |
396 |
473 |
265 |
(77 |
) |
(16.3 |
) |
131 |
49.4 |
||||||||||||||||||||||||
|
Deposit insurance |
300 |
300 |
313 |
- |
- |
(13 |
) |
(4.2 |
) |
||||||||||||||||||||||||
|
Director fees |
270 |
260 |
265 |
10 |
3.8 |
5 |
1.9 |
||||||||||||||||||||||||||
|
Other expenses |
592 |
636 |
634 |
(44 |
) |
(6.9 |
) |
(42 |
) |
(6.6 |
) |
||||||||||||||||||||||
|
Total noninterest expense |
13,929 |
14,071 |
13,019 |
(142 |
) |
(1.0 |
) |
910 |
7.0 |
||||||||||||||||||||||||
|
Income before provision for income taxes |
18,652 |
18,487 |
21,528 |
165 |
0.9 |
(2,876 |
) |
(13.4 |
) |
||||||||||||||||||||||||
|
Provision for income taxes |
4,180 |
4,199 |
5,037 |
(19 |
) |
(0.5 |
) |
(857 |
) |
(17.0 |
) |
||||||||||||||||||||||
|
Net income |
$ |
14,472 |
$ |
14,288 |
$ |
16,491 |
$ |
184 |
1.3 |
% |
$ |
(2,019 |
) |
(12.2 |
) |
% |
|||||||||||||||||
|
Effective tax rate |
22.4 |
% |
22.7 |
% |
23.4 |
% |
|||||||||||||||||||||||||||
|
Net income per common share - Basic |
$ |
1.44 |
$ |
1.43 |
$ |
1.64 |
|||||||||||||||||||||||||||
|
Net income per common share - Diluted |
1.42 |
1.40 |
1.61 |
||||||||||||||||||||||||||||||
|
Weighted average common shares outstanding - Basic |
10,041 |
10,012 |
10,033 |
||||||||||||||||||||||||||||||
|
Weighted average common shares outstanding - Diluted |
10,221 |
10,199 |
10,212 |
||||||||||||||||||||||||||||||
*NM=Not meaningful
UNITY BANCORP, INC.
YTD CONSOLIDATED STATEMENTS OF INCOME
|
For the six months ended June 30, |
Current YTD vs. Prior YTD |
|||||||||||||||||
|
(In thousands, except percentages and per share amounts) |
2026 |
2025 |
$ |
% |
||||||||||||||
|
INTEREST INCOME |
||||||||||||||||||
|
Interest-bearing deposits |
$ |
1,013 |
$ |
819 |
$ |
194 |
23.7 |
% |
||||||||||
|
FHLB stock |
274 |
312 |
(38 |
) |
(12.2 |
) |
||||||||||||
|
Securities: |
||||||||||||||||||
|
Taxable |
2,800 |
3,521 |
(721 |
) |
(20.5 |
) |
||||||||||||
|
Tax-exempt |
42 |
35 |
7 |
20.0 |
||||||||||||||
|
Total securities |
2,842 |
3,556 |
(714 |
) |
(20.1 |
) |
||||||||||||
|
Loans: |
||||||||||||||||||
|
SBA loans |
1,684 |
1,790 |
(106 |
) |
(5.9 |
) |
||||||||||||
|
Commercial loans |
51,525 |
44,666 |
6,859 |
15.4 |
||||||||||||||
|
Commercial construction loans |
6,385 |
5,330 |
1,055 |
19.8 |
||||||||||||||
|
Residential mortgage loans |
21,324 |
20,337 |
987 |
4.9 |
||||||||||||||
|
Consumer loans |
2,895 |
2,837 |
58 |
2.0 |
||||||||||||||
|
Residential construction loans |
3,872 |
3,754 |
118 |
3.1 |
||||||||||||||
|
Total loans |
87,685 |
78,714 |
8,971 |
11.4 |
||||||||||||||
|
Total interest income |
91,814 |
83,401 |
8,413 |
10.1 |
||||||||||||||
|
INTEREST EXPENSE |
||||||||||||||||||
|
Interest-bearing demand deposits |
3,994 |
3,520 |
474 |
13.5 |
||||||||||||||
|
Savings deposits |
6,451 |
5,311 |
1,140 |
21.5 |
||||||||||||||
|
Brokered deposits |
4,513 |
3,573 |
940 |
26.3 |
||||||||||||||
|
Time deposits |
12,411 |
12,975 |
(564 |
) |
(4.3 |
) |
||||||||||||
|
Borrowed funds and subordinated debentures |
1,887 |
2,214 |
(327 |
) |
(14.8 |
) |
||||||||||||
|
Total interest expense |
29,256 |
27,593 |
1,663 |
6.0 |
||||||||||||||
|
Net interest income |
62,558 |
55,808 |
6,750 |
12.1 |
||||||||||||||
|
Provision for credit losses, loans |
2,083 |
3,083 |
(1,000 |
) |
(32.4 |
) |
||||||||||||
|
Provision for credit losses, off-balance sheet |
133 |
95 |
38 |
40.0 |
||||||||||||||
|
Release of credit losses, securities |
- |
(2,036 |
) |
(2,036 |
) |
*NM |
||||||||||||
|
Net interest income after provision for credit losses |
60,342 |
54,666 |
5,676 |
10.4 |
||||||||||||||
|
NONINTEREST INCOME |
||||||||||||||||||
|
Branch fee income |
1,101 |
912 |
189 |
20.7 |
||||||||||||||
|
Service and loan fee income |
1,570 |
1,400 |
170 |
12.1 |
||||||||||||||
|
Gain on sale of SBA loans held for sale, net |
640 |
302 |
338 |
111.9 |
||||||||||||||
|
Gain on sale of mortgage loans, net |
905 |
603 |
302 |
50.1 |
||||||||||||||
|
BOLI income |
430 |
334 |
96 |
28.7 |
||||||||||||||
|
Net securities (losses) gains |
(725 |
) |
3,551 |
(4,276 |
) |
*NM |
||||||||||||
|
Other income |
876 |
814 |
62 |
7.6 |
||||||||||||||
|
Total noninterest income |
4,797 |
7,916 |
(3,119 |
) |
(39.4 |
) |
||||||||||||
|
NONINTEREST EXPENSE |
||||||||||||||||||
|
Compensation and benefits |
17,342 |
16,062 |
1,280 |
8.0 |
||||||||||||||
|
Processing and communications |
2,277 |
1,966 |
311 |
15.8 |
||||||||||||||
|
Occupancy |
1,829 |
1,689 |
140 |
8.3 |
||||||||||||||
|
Furniture and equipment |
1,546 |
1,533 |
13 |
0.8 |
||||||||||||||
|
Professional services |
944 |
714 |
230 |
32.2 |
||||||||||||||
|
Advertising |
835 |
847 |
(12 |
) |
(1.4 |
) |
||||||||||||
|
Loan related expenses |
868 |
311 |
557 |
179.1 |
||||||||||||||
|
Deposit insurance |
600 |
554 |
46 |
8.3 |
||||||||||||||
|
Director fees |
530 |
760 |
(230 |
) |
(30.3 |
) |
||||||||||||
|
Other expenses |
1,230 |
1,194 |
36 |
3.0 |
||||||||||||||
|
Total noninterest expense |
28,001 |
25,630 |
2,371 |
9.3 |
||||||||||||||
|
Income before provision for income taxes |
37,138 |
36,952 |
186 |
0.5 |
||||||||||||||
|
Provision for income taxes |
8,378 |
8,863 |
(485 |
) |
(5.5 |
) |
||||||||||||
|
Net income |
$ |
28,760 |
$ |
28,089 |
$ |
671 |
2.4 |
% |
||||||||||
|
Effective tax rate |
22.6 |
% |
24.0 |
% |
||||||||||||||
|
Net income per common share - Basic |
$ |
2.87 |
$ |
2.79 |
||||||||||||||
|
Net income per common share - Diluted |
2.82 |
2.74 |
||||||||||||||||
|
Weighted average common shares outstanding - Basic |
10,026 |
10,043 |
||||||||||||||||
|
Weighted average common shares outstanding - Diluted |
10,210 |
10,229 |
||||||||||||||||
|
*NM=Not meaningful |
||||||||||||||||||
UNITY BANCORP, INC.
QUARTER TO DATE NET INTEREST MARGIN
|
For the three months ended |
||||||||||||||||||||||||||
|
(Dollar amounts in thousands, interest amounts and |
June 30, 2026 |
June 30, 2025 |
||||||||||||||||||||||||
|
interest rates/yields on a fully tax-equivalent basis) |
Average Balance |
Interest |
Rate/Yield |
Average Balance |
Interest |
Rate/Yield |
||||||||||||||||||||
|
ASSETS |
||||||||||||||||||||||||||
|
Interest-earning assets: |
||||||||||||||||||||||||||
|
Interest-bearing deposits |
$ |
49,429 |
$ |
455 |
3.69 |
% |
$ |
43,985 |
$ |
487 |
4.44 |
% |
||||||||||||||
|
FHLB stock |
7,012 |
140 |
8.03 |
7,626 |
130 |
6.82 |
||||||||||||||||||||
|
Securities: |
||||||||||||||||||||||||||
|
Taxable |
116,246 |
1,391 |
4.78 |
138,283 |
1,735 |
5.02 |
||||||||||||||||||||
|
Tax-exempt |
2,197 |
28 |
5.17 |
1,471 |
20 |
5.59 |
||||||||||||||||||||
|
Total securities (A) |
118,443 |
1,419 |
4.79 |
139,754 |
1,755 |
5.02 |
||||||||||||||||||||
|
Loans: |
||||||||||||||||||||||||||
|
SBA loans |
41,163 |
840 |
8.16 |
48,646 |
856 |
7.04 |
||||||||||||||||||||
|
Commercial loans |
1,566,240 |
26,509 |
6.70 |
1,383,062 |
23,352 |
6.68 |
||||||||||||||||||||
|
Commercial construction loans |
167,917 |
3,347 |
7.89 |
113,959 |
2,384 |
8.28 |
||||||||||||||||||||
|
Residential mortgage loans |
669,245 |
10,411 |
6.22 |
658,239 |
10,390 |
6.31 |
||||||||||||||||||||
|
Consumer loans |
88,833 |
1,471 |
6.55 |
82,265 |
1,491 |
7.17 |
||||||||||||||||||||
|
Residential construction loans |
90,479 |
2,047 |
8.95 |
72,525 |
1,758 |
9.59 |
||||||||||||||||||||
|
Total loans (B) |
2,623,877 |
44,625 |
6.73 |
2,358,696 |
40,231 |
6.75 |
||||||||||||||||||||
|
Total interest-earning assets |
$ |
2,798,761 |
$ |
46,639 |
6.68 |
% |
$ |
2,550,061 |
$ |
42,603 |
6.70 |
% |
||||||||||||||
|
Noninterest-earning assets: |
||||||||||||||||||||||||||
|
Cash and due from banks |
26,650 |
21,601 |
||||||||||||||||||||||||
|
Allowance for credit losses |
(33,833 |
) |
(28,067 |
) |
||||||||||||||||||||||
|
Other assets |
102,359 |
95,195 |
||||||||||||||||||||||||
|
Total noninterest-earning assets |
95,176 |
88,729 |
||||||||||||||||||||||||
|
Total assets |
$ |
2,893,937 |
$ |
2,638,790 |
||||||||||||||||||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||||||||||||||||||||
|
Interest-bearing liabilities: |
||||||||||||||||||||||||||
|
Interest-bearing demand deposits |
$ |
396,128 |
$ |
2,084 |
2.11 |
% |
$ |
354,353 |
$ |
1,898 |
2.15 |
% |
||||||||||||||
|
Savings deposits |
570,929 |
3,291 |
2.31 |
487,307 |
2,718 |
2.24 |
||||||||||||||||||||
|
Brokered deposits |
261,454 |
2,247 |
3.45 |
207,128 |
1,786 |
3.46 |
||||||||||||||||||||
|
Time deposits |
706,984 |
6,282 |
3.56 |
682,426 |
6,560 |
3.86 |
||||||||||||||||||||
|
Total interest-bearing deposits |
1,935,495 |
13,904 |
2.88 |
1,731,214 |
12,962 |
3.00 |
||||||||||||||||||||
|
Borrowed funds and subordinated debentures |
95,890 |
904 |
3.73 |
118,166 |
1,081 |
3.62 |
||||||||||||||||||||
|
Total interest-bearing liabilities |
$ |
2,031,385 |
$ |
14,808 |
2.92 |
% |
$ |
1,849,380 |
$ |
14,043 |
3.05 |
% |
||||||||||||||
|
Noninterest-bearing liabilities: |
||||||||||||||||||||||||||
|
Noninterest-bearing demand deposits |
468,772 |
442,151 |
||||||||||||||||||||||||
|
Other liabilities |
27,705 |
34,464 |
||||||||||||||||||||||||
|
Total noninterest-bearing liabilities |
496,477 |
476,615 |
||||||||||||||||||||||||
|
Total shareholders' equity |
366,075 |
312,795 |
||||||||||||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
2,893,937 |
$ |
2,638,790 |
||||||||||||||||||||||
|
Net interest spread |
$ |
31,831 |
3.76 |
% |
$ |
28,560 |
3.66 |
% |
||||||||||||||||||
|
Tax-equivalent basis adjustment |
(4 |
) |
(3 |
) |
||||||||||||||||||||||
|
Net interest income |
$ |
31,827 |
$ |
28,557 |
||||||||||||||||||||||
|
Net interest margin |
4.56 |
% |
4.49 |
% |
||||||||||||||||||||||
(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 |
June 30, 2026 |
March 31, 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 |
$ |
49,429 |
$ |
455 |
3.69 |
% |
$ |
61,424 |
$ |
558 |
3.69 |
% |
||||||||||||||
|
FHLB stock |
7,012 |
140 |
8.03 |
7,214 |
134 |
7.53 |
||||||||||||||||||||
|
Securities: |
||||||||||||||||||||||||||
|
Taxable |
116,246 |
1,391 |
4.78 |
118,488 |
1,409 |
4.76 |
||||||||||||||||||||
|
Tax-exempt |
2,197 |
28 |
5.17 |
1,486 |
21 |
5.60 |
||||||||||||||||||||
|
Total securities (A) |
118,443 |
1,419 |
4.79 |
119,974 |
1,430 |
4.77 |
||||||||||||||||||||
|
Loans: |
||||||||||||||||||||||||||
|
SBA Loans |
41,163 |
840 |
8.16 |
41,576 |
844 |
8.12 |
||||||||||||||||||||
|
Commercial loans |
1,566,240 |
26,509 |
6.70 |
1,528,022 |
25,016 |
6.55 |
||||||||||||||||||||
|
Commercial construction loans |
167,917 |
3,347 |
7.89 |
152,561 |
3,038 |
7.96 |
||||||||||||||||||||
|
Residential mortgage loans |
669,245 |
10,411 |
6.22 |
678,359 |
10,913 |
6.44 |
||||||||||||||||||||
|
Consumer loans |
88,833 |
1,471 |
6.55 |
84,037 |
1,424 |
6.78 |
||||||||||||||||||||
|
Residential construction loans |
90,479 |
2,047 |
8.95 |
80,226 |
1,825 |
9.10 |
||||||||||||||||||||
|
Total loans (B) |
2,623,877 |
44,625 |
6.73 |
2,564,781 |
43,060 |
6.72 |
||||||||||||||||||||
|
Total interest-earning assets |
$ |
2,798,761 |
$ |
46,639 |
6.68 |
% |
$ |
2,753,393 |
$ |
45,182 |
6.66 |
% |
||||||||||||||
|
Noninterest-earning assets: |
||||||||||||||||||||||||||
|
Cash and due from banks |
26,650 |
24,735 |
||||||||||||||||||||||||
|
Allowance for credit losses |
(33,833 |
) |
(33,007 |
) |
||||||||||||||||||||||
|
Other assets |
102,359 |
98,891 |
||||||||||||||||||||||||
|
Total noninterest-earning assets |
95,176 |
90,619 |
||||||||||||||||||||||||
|
Total assets |
$ |
2,893,937 |
$ |
2,844,012 |
||||||||||||||||||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||||||||||||||||||||
|
Interest-bearing liabilities: |
||||||||||||||||||||||||||
|
Interest-bearing demand deposits |
$ |
396,128 |
$ |
2,084 |
2.11 |
% |
$ |
385,444 |
$ |
1,910 |
2.01 |
% |
||||||||||||||
|
Savings deposits |
570,929 |
3,291 |
2.31 |
563,220 |
3,160 |
2.28 |
||||||||||||||||||||
|
Brokered deposits |
261,454 |
2,247 |
3.45 |
265,877 |
2,267 |
3.46 |
||||||||||||||||||||
|
Time deposits |
706,984 |
6,282 |
3.56 |
685,355 |
6,128 |
3.63 |
||||||||||||||||||||
|
Total interest-bearing deposits |
1,935,495 |
13,904 |
2.88 |
1,899,896 |
13,465 |
2.87 |
||||||||||||||||||||
|
Borrowed funds and subordinated debentures |
95,890 |
904 |
3.73 |
108,231 |
984 |
3.64 |
||||||||||||||||||||
|
Total interest-bearing liabilities |
$ |
2,031,385 |
$ |
14,808 |
2.92 |
% |
$ |
2,008,127 |
$ |
14,449 |
2.92 |
% |
||||||||||||||
|
Noninterest-bearing liabilities: |
||||||||||||||||||||||||||
|
Noninterest-bearing demand deposits |
468,772 |
457,603 |
||||||||||||||||||||||||
|
Other liabilities |
27,705 |
24,594 |
||||||||||||||||||||||||
|
Total noninterest-bearing liabilities |
496,477 |
482,197 |
||||||||||||||||||||||||
|
Total shareholders' equity |
366,075 |
353,688 |
||||||||||||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
2,893,937 |
$ |
2,844,012 |
||||||||||||||||||||||
|
Net interest spread |
$ |
31,831 |
3.76 |
% |
$ |
30,733 |
3.74 |
% |
||||||||||||||||||
|
Tax-equivalent basis adjustment |
(4 |
) |
(3 |
) |
||||||||||||||||||||||
|
Net interest income |
$ |
31,827 |
$ |
30,730 |
||||||||||||||||||||||
|
Net interest margin |
4.56 |
% |
4.53 |
% |
||||||||||||||||||||||
(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 six months ended |
||||||||||||||||||||||||||
|
(Dollar amounts in thousands, interest amounts and |
June 30, 2026 |
June 30, 2025 |
||||||||||||||||||||||||
|
interest rates/yields on a fully tax-equivalent basis) |
Average |
Interest |
Rate/Yield |
Average |
Interest |
Rate/Yield |
||||||||||||||||||||
|
ASSETS |
||||||||||||||||||||||||||
|
Interest-earning assets: |
||||||||||||||||||||||||||
|
Interest-bearing deposits |
$ |
55,393 |
$ |
1,013 |
3.69 |
% |
$ |
37,161 |
$ |
819 |
4.44 |
% |
||||||||||||||
|
FHLB stock |
7,113 |
274 |
7.77 |
7,543 |
312 |
8.34 |
||||||||||||||||||||
|
Securities: |
||||||||||||||||||||||||||
|
Taxable |
117,361 |
2,800 |
4.77 |
140,552 |
3,521 |
5.01 |
||||||||||||||||||||
|
Tax-exempt |
1,843 |
49 |
5.34 |
1,533 |
38 |
5.07 |
||||||||||||||||||||
|
Total securities (A) |
119,204 |
2,849 |
4.78 |
142,085 |
3,559 |
5.01 |
||||||||||||||||||||
|
Loans: |
||||||||||||||||||||||||||
|
SBA loans |
41,369 |
1,684 |
8.10 |
49,139 |
1,790 |
7.25 |
||||||||||||||||||||
|
Commercial loans |
1,547,236 |
51,525 |
6.62 |
1,344,770 |
44,666 |
6.61 |
||||||||||||||||||||
|
Commercial construction loans |
160,281 |
6,385 |
7.92 |
127,378 |
5,330 |
8.32 |
||||||||||||||||||||
|
Residential mortgage loans |
673,777 |
21,324 |
6.33 |
649,041 |
20,337 |
6.27 |
||||||||||||||||||||
|
Consumer loans |
86,448 |
2,895 |
6.66 |
78,730 |
2,837 |
7.17 |
||||||||||||||||||||
|
Residential construction loans |
85,381 |
3,872 |
9.02 |
78,437 |
3,754 |
9.52 |
||||||||||||||||||||
|
Total loans (B) |
2,594,492 |
87,685 |
6.72 |
2,327,495 |
78,714 |
6.73 |
||||||||||||||||||||
|
Total interest-earning assets |
$ |
2,776,202 |
$ |
91,821 |
6.67 |
% |
$ |
2,514,284 |
$ |
83,404 |
6.69 |
% |
||||||||||||||
|
Noninterest-earning assets: |
||||||||||||||||||||||||||
|
Cash and due from banks |
25,698 |
22,354 |
||||||||||||||||||||||||
|
Allowance for credit losses |
(33,422 |
) |
(27,763 |
) |
||||||||||||||||||||||
|
Other assets |
100,634 |
93,385 |
||||||||||||||||||||||||
|
Total noninterest-earning assets |
92,910 |
87,976 |
||||||||||||||||||||||||
|
Total assets |
$ |
2,869,112 |
$ |
2,602,260 |
||||||||||||||||||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||||||||||||||||||||
|
Interest-bearing liabilities: |
||||||||||||||||||||||||||
|
Interest-bearing demand deposits |
$ |
390,816 |
$ |
3,994 |
2.06 |
% |
$ |
348,206 |
$ |
3,520 |
2.04 |
% |
||||||||||||||
|
Savings deposits |
567,095 |
6,451 |
2.29 |
491,158 |
5,311 |
2.18 |
||||||||||||||||||||
|
Brokered deposits |
263,653 |
4,513 |
3.45 |
210,305 |
3,573 |
3.43 |
||||||||||||||||||||
|
Time deposits |
696,229 |
12,411 |
3.59 |
660,304 |
12,975 |
3.96 |
||||||||||||||||||||
|
Total interest-bearing deposits |
1,917,793 |
27,369 |
2.88 |
1,709,973 |
25,379 |
2.99 |
||||||||||||||||||||
|
Borrowed funds and subordinated debentures |
102,027 |
1,887 |
3.68 |
118,648 |
2,214 |
3.71 |
||||||||||||||||||||
|
Total interest-bearing liabilities |
$ |
2,019,820 |
$ |
29,256 |
2.92 |
% |
$ |
1,828,621 |
$ |
27,593 |
3.04 |
% |
||||||||||||||
|
Noninterest-bearing liabilities: |
||||||||||||||||||||||||||
|
Noninterest-bearing demand deposits |
463,219 |
433,906 |
||||||||||||||||||||||||
|
Other liabilities |
26,157 |
32,161 |
||||||||||||||||||||||||
|
Total noninterest-bearing liabilities |
489,376 |
466,067 |
||||||||||||||||||||||||
|
Total shareholders' equity |
359,916 |
307,572 |
||||||||||||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
2,869,112 |
$ |
2,602,260 |
||||||||||||||||||||||
|
Net interest spread |
$ |
62,565 |
3.75 |
% |
$ |
55,811 |
3.65 |
% |
||||||||||||||||||
|
Tax-equivalent basis adjustment |
(7 |
) |
(3 |
) |
||||||||||||||||||||||
|
Net interest income |
$ |
62,558 |
$ |
55,808 |
||||||||||||||||||||||
|
Net interest margin |
4.54 |
% |
4.48 |
% |
||||||||||||||||||||||
(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) |
June 30, 2026 |
March 31, 2026 |
December 31, 2025 |
September 30, 2025 |
June 30, 2025 |
||||||||||||||||
|
ALLOWANCE FOR CREDIT LOSSES: |
|||||||||||||||||||||
|
Balance, beginning of period |
$ |
33,354 |
$ |
32,342 |
$ |
30,245 |
$ |
29,012 |
$ |
27,651 |
|||||||||||
|
Provision for credit losses for loans |
1,040 |
1,043 |
2,208 |
1,409 |
1,725 |
||||||||||||||||
|
34,394 |
33,385 |
32,453 |
30,421 |
29,376 |
|||||||||||||||||
|
Less: Chargeoffs |
|||||||||||||||||||||
|
SBA loans |
- |
50 |
265 |
211 |
105 |
||||||||||||||||
|
Commercial loans |
- |
140 |
- |
- |
100 |
||||||||||||||||
|
Residential mortgage loans |
- |
- |
46 |
85 |
282 |
||||||||||||||||
|
Consumer loans |
- |
10 |
11 |
30 |
21 |
||||||||||||||||
|
Residential construction loans |
- |
40 |
- |
- |
- |
||||||||||||||||
|
Total chargeoffs |
- |
240 |
322 |
326 |
508 |
||||||||||||||||
|
Add: Recoveries |
|||||||||||||||||||||
|
SBA loans |
56 |
5 |
4 |
50 |
2 |
||||||||||||||||
|
Commercial loans |
95 |
93 |
196 |
92 |
102 |
||||||||||||||||
|
Residential mortgage loans |
- |
100 |
- |
- |
- |
||||||||||||||||
|
Consumer loans |
6 |
11 |
11 |
8 |
40 |
||||||||||||||||
|
Residential construction loans |
- |
- |
- |
- |
- |
||||||||||||||||
|
Total recoveries |
157 |
209 |
211 |
150 |
144 |
||||||||||||||||
|
Net recoveries (chargeoffs) |
157 |
(31 |
) |
(111 |
) |
(176 |
) |
(364 |
) |
||||||||||||
|
Balance, end of period |
$ |
34,551 |
$ |
33,354 |
$ |
32,342 |
$ |
30,245 |
$ |
29,012 |
|||||||||||
|
ASSET QUALITY INFORMATION: |
|||||||||||||||||||||
|
Nonaccrual loans: |
|||||||||||||||||||||
|
SBA loans |
$ |
1,616 |
$ |
1,645 |
$ |
1,751 |
$ |
4,225 |
$ |
4,177 |
|||||||||||
|
Commercial loans |
17,743 |
18,375 |
18,473 |
4,006 |
3,512 |
||||||||||||||||
|
Residential mortgage loans |
10,290 |
8,915 |
8,173 |
11,174 |
7,980 |
||||||||||||||||
|
Consumer loans |
2,926 |
1,557 |
1,268 |
938 |
- |
||||||||||||||||
|
Residential construction loans |
442 |
128 |
171 |
171 |
171 |
||||||||||||||||
|
Total nonaccrual loans |
33,017 |
30,620 |
29,836 |
20,514 |
15,840 |
||||||||||||||||
|
OREO |
1,472 |
1,472 |
1,472 |
- |
- |
||||||||||||||||
|
Nonaccrual assets |
$ |
34,489 |
$ |
32,092 |
$ |
31,308 |
$ |
20,514 |
$ |
15,840 |
|||||||||||
|
Loans 90 days past due & still accruing |
$ |
- |
$ |
90 |
$ |
- |
$ |
356 |
$ |
2,876 |
|||||||||||
|
Nonaccrual loans to total loans |
1.23 |
% |
1.18 |
% |
1.17 |
% |
0.83 |
% |
0.66 |
% |
|||||||||||
|
Nonaccrual assets to total assets |
1.08 |
1.06 |
1.06 |
0.71 |
0.54 |
||||||||||||||||
|
Allowance for credit losses to: |
|||||||||||||||||||||
|
Total loans |
1.29 |
% |
1.28 |
% |
1.27 |
% |
1.23 |
% |
1.22 |
% |
|||||||||||
|
Total nonaccrual loans |
104.65 |
108.93 |
108.40 |
147.44 |
183.16 |
||||||||||||||||
UNITY BANCORP, INC.
QUARTERLY FINANCIAL DATA
|
(In thousands, except %'s, employee, office and per share amounts) |
June 30, 2026 |
March 31, 2026 |
December 31, 2025 |
September 30, 2025 |
June 30, 2025 |
||||||||||||||||
|
SUMMARY OF INCOME: |
|||||||||||||||||||||
|
Total interest income |
$ |
46,635 |
$ |
45,179 |
$ |
45,868 |
$ |
44,361 |
$ |
42,600 |
|||||||||||
|
Total interest expense |
14,808 |
14,449 |
14,499 |
14,505 |
14,043 |
||||||||||||||||
|
Net interest income |
31,827 |
30,730 |
31,369 |
29,856 |
28,557 |
||||||||||||||||
|
Provision (Release) for credit losses |
1,167 |
1,048 |
2,258 |
542 |
(175 |
) |
|||||||||||||||
|
Net interest income after provision for credit losses |
30,660 |
29,682 |
29,111 |
29,314 |
28,732 |
||||||||||||||||
|
Total noninterest income |
1,921 |
2,876 |
3,898 |
2,967 |
5,815 |
||||||||||||||||
|
Total noninterest expense |
13,929 |
14,071 |
13,315 |
13,415 |
13,019 |
||||||||||||||||
|
Income before provision for income taxes |
18,652 |
18,487 |
19,694 |
18,866 |
21,528 |
||||||||||||||||
|
Provision for income taxes |
4,180 |
4,199 |
4,222 |
4,476 |
5,037 |
||||||||||||||||
|
Net income |
$ |
14,472 |
$ |
14,288 |
$ |
15,472 |
$ |
14,390 |
$ |
16,491 |
|||||||||||
|
Net income per common share - Basic |
$ |
1.44 |
$ |
1.43 |
$ |
1.55 |
$ |
1.43 |
$ |
1.64 |
|||||||||||
|
Net income per common share - Diluted |
1.42 |
1.40 |
1.52 |
1.41 |
1.61 |
||||||||||||||||
|
COMMON SHARE DATA: |
|||||||||||||||||||||
|
Market price per share |
$ |
58.69 |
$ |
51.83 |
$ |
51.72 |
$ |
48.87 |
$ |
47.08 |
|||||||||||
|
Dividends paid |
0.16 |
0.16 |
0.15 |
0.15 |
0.14 |
||||||||||||||||
|
Book value per common share |
37.02 |
35.66 |
34.63 |
33.26 |
31.88 |
||||||||||||||||
|
Weighted average common shares outstanding - Basic |
10,041 |
10,012 |
10,008 |
10,036 |
10,033 |
||||||||||||||||
|
Weighted average common shares outstanding - Diluted |
10,221 |
10,199 |
10,195 |
10,233 |
10,212 |
||||||||||||||||
|
Issued common shares |
10,116 |
10,114 |
10,048 |
11,681 |
11,672 |
||||||||||||||||
|
Outstanding common shares |
10,043 |
10,041 |
9,982 |
10,041 |
10,032 |
||||||||||||||||
|
Treasury shares |
73 |
73 |
66 |
1,640 |
1,640 |
||||||||||||||||
|
QUARTERLY PERFORMANCE RATIOS (ANNUALIZED): |
|||||||||||||||||||||
|
Return on average assets |
2.01 |
% |
2.04 |
% |
2.20 |
% |
2.11 |
% |
2.51 |
% |
|||||||||||
|
Return on average equity |
15.86 |
16.38 |
18.08 |
17.41 |
21.15 |
||||||||||||||||
|
Efficiency ratio ** |
40.50 |
41.77 |
39.52 |
41.47 |
42.31 |
||||||||||||||||
|
Noninterest expense to average assets |
1.93 |
2.01 |
1.89 |
1.97 |
1.98 |
||||||||||||||||
|
BALANCE SHEET DATA: |
|||||||||||||||||||||
|
Total assets |
$ |
3,194,313 |
$ |
3,027,327 |
$ |
2,966,652 |
$ |
2,876,365 |
$ |
2,928,523 |
|||||||||||
|
Total securities |
119,300 |
115,268 |
124,015 |
131,252 |
139,348 |
||||||||||||||||
|
Total loans |
2,682,494 |
2,601,656 |
2,544,713 |
2,468,527 |
2,382,594 |
||||||||||||||||
|
Allowance for credit losses |
34,551 |
33,354 |
32,342 |
30,245 |
29,012 |
||||||||||||||||
|
Total deposits |
2,462,549 |
2,379,140 |
2,324,061 |
2,267,484 |
2,187,366 |
||||||||||||||||
|
Total shareholders' equity |
371,813 |
358,095 |
345,631 |
334,023 |
319,840 |
||||||||||||||||
|
TAX EQUIVALENT YIELDS AND RATES: |
|||||||||||||||||||||
|
Interest-earning assets |
6.68 |
% |
6.66 |
% |
6.72 |
% |
6.74 |
% |
6.70 |
% |
|||||||||||
|
Interest-bearing liabilities |
2.92 |
2.92 |
2.94 |
3.05 |
3.05 |
||||||||||||||||
|
Net interest spread |
3.76 |
3.74 |
3.78 |
3.69 |
3.66 |
||||||||||||||||
|
Net interest margin |
4.56 |
4.53 |
4.60 |
4.54 |
4.49 |
||||||||||||||||
|
CREDIT QUALITY: |
|||||||||||||||||||||
|
Nonaccrual assets |
$ |
34,489 |
$ |
32,092 |
$ |
31,308 |
$ |
20,514 |
$ |
15,840 |
|||||||||||
|
QTD annualized net recoveries (chargeoffs) to QTD average loans |
0.03 |
% |
(0.01 |
) |
% |
(0.02 |
) |
% |
(0.03 |
) |
% |
(0.06 |
) |
% |
|||||||
|
Allowance for credit losses to total loans |
1.29 |
1.28 |
1.27 |
1.23 |
1.22 |
||||||||||||||||
|
Nonaccrual loans to total loans |
1.23 |
1.18 |
1.17 |
0.83 |
0.66 |
||||||||||||||||
|
Nonaccrual assets to total assets |
1.08 |
1.06 |
1.06 |
0.71 |
0.54 |
||||||||||||||||
|
UNITY BANCORP CAPITAL RATIOS |
|||||||||||||||||||||
|
Total equity to total assets |
11.64 |
% |
11.83 |
% |
11.65 |
% |
11.61 |
% |
10.92 |
% |
|||||||||||
|
Leverage ratio |
13.17 |
12.93 |
12.72 |
12.71 |
12.50 |
||||||||||||||||
|
Common Equity Tier 1 Capital Ratio |
14.19 |
14.50 |
14.45 |
14.45 |
13.96 |
||||||||||||||||
|
Risk-based Tier 1 Capital Ratio |
14.57 |
14.91 |
14.87 |
14.88 |
14.39 |
||||||||||||||||
|
Risk-based Total Capital Ratio |
15.82 |
16.16 |
16.12 |
16.13 |
15.65 |
||||||||||||||||
|
Number of banking offices |
22 |
22 |
22 |
22 |
21 |
||||||||||||||||
|
Employee Full-Time Equivalent |
249 |
244 |
242 |
238 |
237 |
||||||||||||||||
** 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) |
June 30, 2026 |
% |
December 31, 2025 |
% |
||||||||||||||
|
Loans Held for Sale |
$ |
9,458 |
0.4 |
% |
$ |
9,490 |
0.4 |
|||||||||||
|
SBA Loans |
35,816 |
1.3 |
34,259 |
1.3 |
||||||||||||||
|
Commercial Loans |
||||||||||||||||||
|
SBA 504 |
44,353 |
1.7 |
43,802 |
1.7 |
||||||||||||||
|
Commercial & industrial |
191,787 |
7.2 |
183,163 |
7.2 |
||||||||||||||
|
Commercial mortgage - owner occupied |
706,609 |
26.3 |
660,427 |
26.0 |
||||||||||||||
|
Commercial mortgage - nonowner occupied |
618,130 |
23.0 |
531,954 |
20.9 |
||||||||||||||
|
Other |
88,373 |
3.3 |
98,686 |
39.0 |
||||||||||||||
|
Total Commercial Loans |
1,649,252 |
61.5 |
1,518,032 |
59.7 |
||||||||||||||
|
Commercial Construction Loans |
128,628 |
4.8 |
147,215 |
5.8 |
||||||||||||||
|
Residential Mortgage Loans |
||||||||||||||||||
|
Primary residence |
466,521 |
17.4 |
472,482 |
18.6 |
||||||||||||||
|
Secondary residence |
70,795 |
2.6 |
71,656 |
2.8 |
||||||||||||||
|
Investor property |
131,186 |
4.9 |
133,083 |
5.2 |
||||||||||||||
|
Total Residential Mortgage Loans |
668,502 |
24.9 |
677,221 |
26.6 |
||||||||||||||
|
Consumer Loans |
||||||||||||||||||
|
Home equity |
92,175 |
3.4 |
82,488 |
3.2 |
||||||||||||||
|
Consumer other |
2,582 |
0.1 |
2,731 |
0.1 |
||||||||||||||
|
Total Consumer Loans |
94,757 |
3.5 |
85,219 |
3.3 |
||||||||||||||
|
Residential Construction Loans |
96,081 |
3.6 |
73,277 |
2.9 |
||||||||||||||
|
Total Gross Loans |
$ |
2,682,494 |
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) |
June 30, 2026 |
March 31, 2026 |
June 30, 2025 |
||||||||||
|
Adjusted net income: |
|||||||||||||
|
Net income (GAAP) |
$ |
14,472 |
$ |
14,288 |
$ |
16,491 |
|||||||
|
Non-recurring transactions: |
|||||||||||||
|
Less: Release of credit losses, securities |
- |
- |
(2,036 |
) |
|||||||||
|
Less: Net securities gains, pertaining to one-time sales |
- |
- |
(3,509 |
) |
|||||||||
|
Add: Adjusted release of income taxes |
- |
- |
1,301 |
||||||||||
|
Adjusted net income (non-GAAP) |
$ |
14,472 |
$ |
14,288 |
$ |
12,247 |
|||||||
|
Adjusted net income per common share: |
|||||||||||||
|
Weighted average common shares outstanding - Basic |
10,041 |
10,012 |
10,033 |
||||||||||
|
Weighted average common shares outstanding - Diluted |
10,221 |
10,199 |
10,212 |
||||||||||
|
Net income per common share - Basic (GAAP) |
$ |
1.44 |
$ |
1.43 |
$ |
1.64 |
|||||||
|
Net income per common share - Diluted (GAAP) |
1.42 |
1.40 |
1.61 |
||||||||||
|
Adjusted net income per common share - Basic (non-GAAP) |
N/A |
N/A |
$ |
1.22 |
|||||||||
|
Adjusted net income per common share - Diluted (non-GAAP) |
N/A |
N/A |
1.20 |
||||||||||
|
Adjusted return on average assets: |
|||||||||||||
|
Total QTD average assets |
$ |
2,893,937 |
$ |
2,844,012 |
$ |
2,638,790 |
|||||||
|
Return on average assets (GAAP) |
2.01 |
% |
2.04 |
% |
2.51 |
% |
|||||||
|
Adjusted return on average assets (non-GAAP) |
N/A |
N/A |
1.86 |
||||||||||
|
Adjusted return on average equity: |
|||||||||||||
|
Total QTD average equity |
$ |
366,075 |
$ |
353,688 |
$ |
312,795 |
|||||||
|
Return on average equity (GAAP) |
15.86 |
% |
16.38 |
% |
21.15 |
% |
|||||||
|
Adjusted return on average equity (non-GAAP) |
N/A |
N/A |
15.70 |
||||||||||
Management uses these non-GAAP measures as internal benchmarks in evaluating operating performance and in planning and forecasting future periods.
Unity Bancorp Inc. published this content on July 14, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on July 14, 2026 at 10:05 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]