Unity Bancorp (UNTY) investor relations material

Executive summary

• Net income for Q1 2026 was $14.3 million, up 23.2% year-over-year, with diluted EPS of $1.40 and ROA at 2.04% and ROE at 16.38%.

• Organic growth achieved in both loans and deposits, with gross loans up 2.2% and deposits up 2.4% from year-end 2025.

• Net interest income rose 12.8% year-over-year, driven by higher loan volume and yield, and lower cost of time deposits.

• Noninterest income increased 36.9% year-over-year but was down $1.0 million sequentially due to prior quarter's unrealized gain.

• Continued investment in digital banking and customer experience initiatives.

Financial highlights

• Net interest margin improved to 4.53% year-over-year but decreased 7 bps sequentially from Q4 2025.

• Total assets grew 2.0% to $3.0 billion from year-end 2025.

• Book value per share increased to $35.66, up from $34.63 at year-end.

• Allowance for credit losses was $33.4 million (1.28% of loans), up from $32.3 million at year-end.

• Net charge-offs were $31 thousand for Q1 2026, down from $0.5 million in Q1 2025.

Outlook and guidance

• Management continues to monitor macroeconomic trends, including interest rate pressures, inflation, and competitive deposit environment.

• Focus remains on balanced loan and deposit growth, deepening customer relationships, and supporting local economic activity.

• Investments in technology and digital platforms are expected to drive operational efficiency and sustainable growth.