Unity Bancorp Reports Quarterly Earnings of $15.5 Million and Full Year Earnings of $58.0 Million

CLINTON, N.J., Jan. 13, 2026 (GLOBE NEWSWIRE) — 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.

James A. Hughes, CEO, commented on the financial results: “We are pleased to report a record year for Unity Bancorp, Inc. For the year, we generated $58.0 million in net income, or $5.67 per diluted share, delivering a 2.17% ROA and 18.07% ROE. This represents a $16.5 million, or 39.8% increase in net income from the prior year. For the fourth quarter, net income totaled $15.5 million, or $1.52 per diluted share, representing 2.20% ROA and 18.08% ROE.

In 2025, we continued to execute on our organic growth strategy, achieving meaningful expansion across loans and deposits. Gross loans increased $284 million, or 12.6%, driven primarily by growth in our commercial portfolios. Total deposits grew $224 million, or 10.7%, with customer deposits (ex-brokered) increasing $168 million, or 8.9%. As we enter 2026, our lending pipelines remain healthy, and we believe a constructive economic backdrop will support Unity’s ability to continue operating as a high-performing institution.

While our overall performance was strong, one large owner-occupied commercial mortgage relationship migrated to nonaccrual status late in the fourth quarter. This $15.5 million credit is well-secured and is not expected to result in a material loss, if any. However, this individual credit represented a $1.6 million pre-tax impact to the Company’s income statement due to general reserve build up and interest income reversals. This borrower’s core business was impacted by the tariffs imposed on Chinese imports, which had a negative impact on their global cash flow. The credit is 42 days past due as of December 31, 2025 and we will continue to monitor the relationship closely.

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.”

For the full version of the Company’s quarterly earnings release, including financial tables, please visit News – Unity Bank (q4ir.com).

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.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

News Media & Financial Analyst Contact:
James Davies, FSVP and CFO
(908) 713-4330

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