UNTY

EX-99.1

2 unty-ex99_1.htm

EX-99.1

EX-99.1

Dil. EPS $1.70

$0.28 Q/Q, GAAP

$0.09 Q/Q, Core*

ROE 18.11%

225 bps Q/Q, GAAP

25 bps Q/Q, Core*

NIM 4.67%

11 bps Q/Q, Core* & GAAP

ROA 2.29%

28 bps Q/Q, GAAP

3 bps Q/Q, Core*

Exhibit 99.1

For Immediate Release

News Media & Financial Analyst Contact:

Unity Bancorp, Inc. (NASDAQ: UNTY)

James Davies, FSVP & CFO

October 13, 2026

(908) 713-4330

Unity Bancorp Reports Quarterly Earnings of $17.4 Million

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

Non-GAAP/Core Reconciliation

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

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

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

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

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

Quarterly Earnings Highlights

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

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

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

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

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

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

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