Exhibit 99.1

Clinton, NJ -- Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $11.6 million, or $1.13 per diluted share, for the quarter ended March 31, 2025, compared to net income of $11.5 million, or $1.13 per diluted share for the quarter ended December 31, 2024. This represents a 0.8% increase in net income.

First Quarter Earnings Highlights

●

Net interest income, the primary driver of earnings, was $27.3 million for the quarter ended March 31, 2025, an increase of $0.8 million, as compared to $26.5 million for the quarter ended December 31, 202 4. Net interest margin (“NIM”) increased 9 basis points to 4.46% for the quarter ended March 31, 2025, compared to the quarter ended December 31, 2024. The increase was primarily due to the cost of interest-bearing liabilities decreasing, complemented by an increase in the yield on interest-earning assets.

●

The provision for credit losses on loans was $1.4 million for the quarter ended March 31, 2025, compared to $0.5 million for the quarter ended December 31, 2024. The provision in the current quarter was primarily driven by loan growth.

●

There was no provision for credit losses on Available For Sale (“AFS”) debt securities for the quarter ended March 31, 2025, as compared to a provision of $0.9 million for the quarter ended December 31, 2024. During the quarter ended March 31, 2025, Unity entered into a modification agreement with the issuer of the troubled AFS debt security. Prior to the modification, Unity held the $5.0 million par of the original senior debt security. As a component of the modification agreement, $2.1 million par of senior debt was converted to common equity of the issuer. The common equity was held as restricted equity as of March 31, 2025.

●

Noninterest income was $2.1 million for the quarter ended March 31, 2025, compared to $1.9 million for the quarter ended December 31, 2024. The $0.2 million increase was primarily due to increased service & loan fee income. This increase was offset by lower gains on sale of mortgage loans. The Bank sold $1.2 million of SBA loans during the quarter ended March 31, 2025, compared to $0.4 million during the quarter ended December 31, 2024. Additionally, the Bank sold $1.0 million of AFS debt securities during the quarter ended March 31, 2025 and realized an $11 thousand loss.

●

Noninterest expense was $12.6 million for the quarter ended March 31, 2025, level with the quarter ended December 31, 2024. During the quarter ended March 31, 2025, there were one-time expenses of $0.2 million related to the resignation of a Director. The resignation was not in connection with any disagreement with the Company or the Bank. For the quarter ending March 31, 2025, employee benefits recorded in the Salaries and Benefits line item, were $1.2 million, compared to $1.7 million for the quarter ended December 31, 2024.

●

The effective tax rate was 24.8% for the quarter ended March 31, 2025, compared to 20.6% for the quarter ended December 31, 2024.

Balance Sheet Highlights

●

Total gross loans increased $84.5 million, or 3.7%, from December 31, 2024, primarily due to increases in the commercial and mortgage loan categories. This was partially offset by decreases in the residential construction category.

●

As of March 31, 2025, the allowance for credit losses as a percentage of gross loans was 1.18%.

●

Total deposits increased $75.1 million, or 3.6%, from December 31, 2024. As of March 31, 2025, 20.0% of total deposits were uninsured or uncollateralized. The Company’s deposit composition as of March 31, 2025, consisted of 20.9% in noninterest bearing demand deposits, 17.4% in interest-bearing demand deposits, 22.7% in savings deposits and 39.0% in time deposits.

●

As of March 31, 2025, investments comprised 5.1% of total assets. Available for sale debt securities (“AFS”) were $90.4 million or 3.3% of total assets. Held to maturity (“HTM”) debt securities were $40.9 million or 1.5% of total assets. As of March 31, 2025, pre-tax net unrealized losses on AFS and HTM were $2.8 million and $6.5 million, respectively. These pre-tax unrealized losses represent approximately 2.9% of the Company’s Tier 1 capital. Equity securities were $10.7 million or 0.4% of total assets as of March 31, 2025, of which $0.8 million represented restricted equity, net of valuation allowance.

●

Borrowed funds increased $22.8 million from December 31, 2024. Borrowed funds were entirely comprised of borrowings from the FHLB.

●

Shareholders’ equity was $306.1 million as of March 31, 2025, compared to $295.6 million as of December 31, 2024. The $10.5 million increase was primarily driven by 2025 earnings, partially offset by dividend payments. Unity Bancorp did not repurchase any shares during the three months ended March 31, 2025.

●

Book value per common share was $30.38 as of March 31, 2025, compared to $29.48 as of December 31, 2024. This increase primarily reflects earnings partially offset by dividend payouts.

●

Below is a summary of Unity Bancorp’s regulatory capital ratios:

o

The Leverage Ratio increased 10 basis points to 12.32% at March 31, 2025, compared to 12.22% at December 31, 2024.

o

The Common Equity Tier 1 Capital Ratio decreased 3 basis points to 13.87% at March 31, 2025, compared to 13.90% at December 31, 2024.

o

The Tier 1 Capital Ratio decreased 4 basis points to 14.33% at March 31, 2025, compared to 14.37% at December 31, 2024.

o

The Total Capital Ratio decreased 4 basis points, to 15.58% at March 31, 2025, compared to 15.62% at December 31, 2024.

●

At March 31, 2025, the Company held $211.6 million of cash and cash equivalents. The Company also maintained approximately $522.2 million of funding available from various sources, including the FHLB, FRB Discount Window and other lines of credit. Additionally, the Company has the ability to pledge additional securities to further increase borrowing capacity. Total available funding plus cash on hand represented 168.8% of uninsured or uncollateralized deposits.

●

As of March 31, 2025, nonaccrual assets were $18.0 million, compared to $15.0 million as of December 31, 2024. As of March 31, 2025, nonaccrual assets included $1.1 million related to AFS debt securities. The ratio of nonaccrual loans to total loans was 0.72% as of March 31, 2025. The ratio of nonaccrual assets to total assets was 0.65% as of March 31, 2025.

Other Highlights

❖

In March 2025, Unity Bank once again, received a 5-Star Superior rating from BauerFinancial. A 5-Star Superior rating indicates that Unity Bank is one of the strongest banks in the nation, excelling in the areas of capital, loan qualify, profitability and more.

Unity Bancorp, Inc. is a financial services organization headquartered in Clinton, New Jersey, with approximately $2.8 billion in assets and $2.2 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, and the impact of any health crisis or national disasters on the Bank, its employees and customers, among other factors.

UNITY BANCORP, INC.

SUMMARY FINANCIAL HIGHLIGHTS

March 31, 2025


										March 31, 2025 vs.
										December 31, 2024		March 31, 2024
(In thousands, except percentages and per share amounts)	March 31, 2025			December 31, 2024			March 31, 2024			%		%
BALANCE SHEET DATA
Total assets	$	2,767,943		$	2,654,017		$	2,568,088		4.3	%	7.8	%
Total deposits		2,175,398			2,100,313			1,961,270		3.6		10.9
Total gross loans		2,345,130			2,260,657			2,174,457		3.7		7.8
Total securities		142,092			145,028			138,702		(2.0)		2.4
Total shareholders' equity		306,142			295,583			266,761		3.6		14.8
Allowance for credit losses		27,651			26,788			26,080		3.2		6.0

FINANCIAL DATA - QUARTER TO DATE
Income before provision for income taxes	$	15,424		$	14,489		$	12,784		6.5		20.7
Provision for income taxes		3,826			2,984			3,198		28.2		19.6
Net income	$	11,598		$	11,505		$	9,586		0.8		21.0

Net income per common share - Basic	$	1.15		$	1.15		$	0.95		-		21.1
Net income per common share - Diluted		1.13			1.13			0.93		-		21.5

PERFORMANCE RATIOS - QUARTER TO DATE (annualized)
Return on average assets		1.83	%		1.83	%		1.58	%
Return on average equity		15.56			15.77			14.49
Efficiency ratio**		42.89			44.44			47.57
Cost of funds		2.46			2.51			2.65
Net interest margin		4.46			4.37			4.09
Noninterest expense to average assets		1.99			2.01			2.00

SHARE INFORMATION
Market price per share	$	40.70		$	43.61		$	27.60		(6.7)		47.5
Dividends paid (QTD)		0.14			0.13			0.13		7.7		7.7
Book value per common share		30.38			29.48			26.56		3.1		14.4
Average diluted shares outstanding (QTD)		10,247			10,204			10,276		0.4		(0.3)

UNITY BANCORP CAPITAL RATIOS
Total equity to total assets		11.06	%		11.14	%		10.39	%	(0.7)		6.4
Leverage ratio		12.32			12.22			11.39		0.8		8.2
Common Equity Tier 1 Capital Ratio		13.87			13.90			12.90		(0.2)		7.5
Risk-based Tier 1 Capital Ratio		14.33			14.37			13.38		(0.3)		7.1
Risk-based Total Capital Ratio		15.58			15.62			14.63		(0.3)		6.5

CREDIT QUALITY AND RATIOS
Nonaccrual assets	$	17,990		$	15,046		$	16,890		19.6		6.5
QTD annualized net (chargeoffs) to QTD average loans		(0.09)	%		(0.12)	%		(0.08)	%
Allowance for credit losses to total loans		1.18			1.18			1.20
Nonaccrual loans to total loans		0.72			0.58			0.78
Nonaccrual assets to total assets		0.65			0.57			0.66
** 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

March 31, 2025


							March 31, 2025 vs.
							December 31, 2024		March 31, 2024
(In thousands, except percentages)	March 31, 2025		December 31, 2024		March 31, 2024		%		%

ASSETS
Cash and due from banks	$	26,378	$	20,206	$	20,619	30.5	%	27.9	%
Interest-bearing deposits		185,215		160,232		162,367	15.6		14.1
Cash and cash equivalents		211,593		180,438		182,986	17.3		15.6
Securities:
Debt securities available for sale, at market value, net of valuation allowance		90,438		93,884		94,682	(3.7)		(4.5)
Debt securities held to maturity, at book value		40,947		41,294		36,089	(0.8)		13.5
Equity securities, at market value, net of restricted shares' valuation allowance		10,707		9,850		7,931	8.7		35.0
Total securities		142,092		145,028		138,702	(2.0)		2.4
Loans:
Loans held for sale		14,000		12,163		18,439	15.1		(24.1)
SBA loans held for investment		36,686		36,859		39,009	(0.5)		(6.0)
SBA PPP loans		1,307		1,450		2,168	(9.9)		(39.7)
Commercial loans		1,486,854		1,411,629		1,291,319	5.3		15.1
Residential mortgage loans		654,250		630,927		627,464	3.7		4.3
Consumer loans		78,620		76,711		72,275	2.5		8.8
Residential construction loans		73,413		90,918		123,783	(19.3)		(40.7)
Total loans		2,345,130		2,260,657		2,174,457	3.7		7.8
Allowance for credit losses		(27,651)		(26,788)		(26,080)	3.2		6.0
Net loans		2,317,479		2,233,869		2,148,377	3.7		7.9
Premises and equipment, net		18,715		18,778		19,281	(0.3)		(2.9)
Bank owned life insurance ("BOLI")		25,925		25,773		25,295	0.6		2.5
Deferred tax assets		14,627		14,106		12,681	3.7		15.3
Federal Home Loan Bank ("FHLB") stock		13,583		12,507		15,896	8.6		(14.6)
Accrued interest receivable		12,998		12,691		13,165	2.4		(1.3)
Goodwill		1,516		1,516		1,516	-		-
Prepaid expenses and other assets		9,415		9,311		10,189	1.1		(7.6)
Total assets	$	2,767,943	$	2,654,017	$	2,568,088	4.3	%	7.8	%

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing demand	$	454,425	$	440,803	$	395,520	3.1	%	14.9	%
Interest-bearing demand		351,485		321,780		325,174	9.2		8.1
Savings		491,449		491,175		504,210	0.1		(2.5)
Brokered deposits		202,323		217,931		235,755	(7.2)		(14.2)
Time deposits		675,716		628,624		500,611	7.5		35.0
Total deposits		2,175,398		2,100,313		1,961,270	3.6		10.9
Borrowed funds		243,292		220,504		299,397	10.3		(18.7)
Subordinated debentures		10,310		10,310		10,310	-		-
Accrued interest payable		2,147		1,702		1,551	26.1		38.4
Accrued expenses and other liabilities		30,654		25,605		28,799	19.7		6.4
Total liabilities		2,461,801		2,358,434		2,301,327	4.4		7.0
Shareholders' equity:
Common stock		104,033		103,936		101,676	0.1		2.3
Retained earnings		237,518		227,331		199,380	4.5		19.1
Treasury stock, at cost		(33,577)		(33,577)		(31,443)	-		6.8
Accumulated other comprehensive loss		(1,832)		(2,107)		(2,852)	(13.1)		(35.8)
Total shareholders' equity		306,142		295,583		266,761	3.6		14.8
Total liabilities and shareholders' equity	$	2,767,943	$	2,654,017	$	2,568,088	4.3	%	7.8	%

Shares issued		11,666		11,616		11,555
Shares outstanding		10,076		10,026		10,044
Treasury shares		1,590		1,590		1,511

*NM=Not meaningful

UNITY BANCORP, INC.

QTD CONSOLIDATED STATEMENTS OF INCOME

March 31, 2025


										March 31, 2025 vs.
	For the three months ended										December 31, 2024					March 31, 2024

(In thousands, except percentages and per share amounts)	March 31, 2025			December 31, 2024			March 31, 2024			$			%			$		%
INTEREST INCOME
Interest-bearing deposits	$	332		$	484		$	420		$		(152)		(31.4)	%	$	(88)		(21.0)	%
FHLB stock		182			164			280				18		11.0			(98)		(35.0)
Securities:
Taxable		1,786			1,809			1,849				(23)		(1.3)			(63)		(3.4)
Tax-exempt		18			17			18				1		5.9			-		-
Total securities		1,804			1,826			1,867				(22)		(1.2)			(63)		(3.4)
Loans:
SBA loans		929			1,096			1,333				(167)		(15.2)			(404)		(30.3)
SBA PPP loans		5			5			8				-		-			(3)		(37.5)
Commercial loans		24,260			23,500			20,830				760		3.2			3,430		16.5
Residential mortgage loans		9,947			9,578			9,219				369		3.9			728		7.9
Consumer loans		1,346			1,379			1,402				(33)		(2.4)			(56)		(4.0)
Residential construction loans		1,996			2,232			2,578				(236)		(10.6)			(582)		(22.6)
Total loans		38,483			37,790			35,370				693		1.8			3,113		8.8
Total interest income		40,801			40,264			37,937				537		1.3			2,864		7.5
INTEREST EXPENSE
Interest-bearing demand deposits		1,622			1,653			1,710				(31)		(1.9)			(88)		(5.1)
Savings deposits		2,593			2,909			3,144				(316)		(10.9)			(551)		(17.5)
Brokered deposits		1,787			1,896			2,295				(109)		(5.7)			(508)		(22.1)
Time deposits		6,415			6,200			4,699				215		3.5			1,716		36.5
Borrowed funds and subordinated debentures		1,133			1,116			2,248				17		1.5			(1,115)		(49.6)
Total interest expense		13,550			13,774			14,096				(224)		(1.6)			(546)		(3.9)
Net interest income		27,251			26,490			23,841				761		2.9			3,410		14.3
Provision for credit losses, loans		1,358			470			641				888		188.9			717		111.9
(Release) Provision for credit losses, off-balance sheet		(41)			(65)			2				24		*NM			(43)		*NM
Provision for credit losses, AFS securities		-			895			-				(895)		*NM			-		-
Net interest income after provision for credit losses		25,934			25,190			23,198				744		3.0			2,736		11.8
NONINTEREST INCOME
Branch fee income		447			463			243				(16)		(3.5)			204		84.0
Service and loan fee income		864			488			457				376		77.0			407		89.1
Gain on sale of SBA loans held for sale, net		139			47			238				92		195.7			(99)		(41.6)
Gain on sale of mortgage loans, net		168			353			320				(185)		(52.4)			(152)		(47.5)
BOLI income		151			155			65				(4)		(2.6)			86		132.3
Net securities (losses) gains		(49)			14			54				(63)		*NM			(103)		*NM
Other income		381			396			341				(15)		(3.8)			40		11.7
Total noninterest income		2,101			1,916			1,718				185		9.7			383		22.3
NONINTEREST EXPENSE
Compensation and benefits		7,902			7,997			7,357				(95)		(1.2)			545		7.4
Processing and communications		986			859			906				127		14.8			80		8.8
Occupancy		880			790			798				90		11.4			82		10.3
Furniture and equipment		746			834			684				(88)		(10.6)			62		9.1
Professional services		364			517			436				(153)		(29.6)			(72)		(16.5)
Advertising		391			348			400				43		12.4			(9)		(2.3)
Loan related expenses		46			179			384				(133)		(74.3)			(338)		(88.0)
Deposit insurance		241			195			339				46		23.6			(98)		(28.9)
Director fees		495			246			247				249		101.2			248		100.4
Other expenses		560			652			581				(92)		(14.1)			(21)		(3.6)
Total noninterest expense		12,611			12,617			12,132				(6)		-			479		3.9
Income before provision for income taxes		15,424			14,489			12,784				935		6.5			2,640		20.7
Provision for income taxes		3,826			2,984			3,198				842		28.2			628		19.6
Net income	$	11,598		$	11,505		$	9,586		$		93		0.8	%	$	2,012		21.0	%

Effective tax rate		24.8	%		20.6	%		25.0	%

Net income per common share - Basic	$	1.15		$	1.15		$	0.95

Net income per common share - Diluted	1.13	1.13	0.93

Weighted average common shares outstanding - Basic	10,054	10,002	10,127
Weighted average common shares outstanding - Diluted	10,247	10,204	10,276
*NM=Not meaningful

UNITY BANCORP, INC.

QUARTER TO DATE NET INTEREST MARGIN

March 31, 2025


	For the three months ended
(Dollar amounts in thousands, interest amounts and	March 31, 2025							March 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	$	30,259	$	332		4.45	%	$	30,685	$	420		5.50	%
FHLB stock		7,459		182		9.90			11,000		280		10.23
Securities:
Taxable		142,847		1,786		5.00			134,874		1,849		5.48
Tax-exempt		1,596		18		4.59			1,658		18		4.47
Total securities (A)		144,443		1,804		5.00			136,532		1,867		5.47
Loans:
SBA loans		48,286		929		7.70			58,120		1,333		9.17
SBA PPP loans		1,352		5		1.36			2,215		8		1.38
Commercial loans		1,446,998		24,260		6.71			1,281,600		20,830		6.43
Residential mortgage loans		639,742		9,947		6.22			625,451		9,219		5.90
Consumer loans		75,156		1,346		7.16			70,250		1,402		7.90
Residential construction loans		84,414		1,996		9.46			129,720		2,578		7.86
Total loans (B)		2,295,948		38,483		6.70			2,167,356		35,370		6.46
Total interest-earning assets	$	2,478,109	$	40,801		6.68	%	$	2,345,573	$	37,937		6.51	%

Noninterest-earning assets:
Cash and due from banks		23,117							23,220
Allowance for credit losses		(27,455)							(26,059)
Other assets		91,553							94,001
Total noninterest-earning assets		87,215							91,162
Total assets	$	2,565,324						$	2,436,735

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits	$	341,991	$	1,622		1.92	%	$	324,829	$	1,710		2.12	%
Savings deposits		495,051		2,593		2.12			503,071		3,144		2.51
Brokered deposits		213,517		1,787		3.39			243,592		2,295		3.79
Time deposits		637,936		6,415		4.08			465,166		4,699		4.06
Total interest-bearing deposits		1,688,495		12,417		2.98			1,536,658		11,848		3.10
Borrowed funds and subordinated debentures		119,135		1,133		3.80			201,335		2,248		4.41
Total interest-bearing liabilities	$	1,807,630	$	13,550		3.04	%	$	1,737,993	$	14,096		3.26	%

Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		425,569							403,847
Other liabilities		29,833							28,747
Total noninterest-bearing liabilities		455,402							432,594
Total shareholders' equity		302,292							266,148
Total liabilities and shareholders' equity	$	2,565,324						$	2,436,735

Net interest spread			$	27,251		3.64	%			$	23,841		3.25	%
Tax-equivalent basis adjustment				-							-
Net interest income			$	27,251						$	23,841
Net interest margin						4.46	%						4.09	%

(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

March 31, 2025


	For the three months ended
(Dollar amounts in thousands, interest amounts and	March 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	$	30,259	$	332		4.45	%	$	40,656	$	484		4.73	%
FHLB stock		7,459		182		9.90			7,303		164		8.96
Securities:
Taxable		142,847		1,786		5.00			142,096		1,809		5.09
Tax-exempt		1,596		18		4.59			1,588		17		4.47
Total securities (A)		144,443		1,804		5.00			143,684		1,826		5.09
Loans:
SBA loans		48,286		929		7.70			51,761		1,096		8.47
SBA PPP loans		1,352		5		1.36			1,497		5		1.33
Commercial loans		1,446,998		24,260		6.71			1,379,993		23,500		6.66
Residential mortgage loans		639,742		9,947		6.22			622,623		9,578		6.15
Consumer loans		75,156		1,346		7.16			73,087		1,379		7.39
Residential construction loans		84,414		1,996		9.46			92,648		2,232		9.43
Total loans (B)		2,295,948		38,483		6.70			2,221,609		37,790		6.66
Total interest-earning assets	$	2,478,109	$	40,801		6.68	%	$	2,413,252	$	40,264		6.64	%

Noninterest-earning assets:
Cash and due from banks		23,117							23,089
Allowance for credit losses		(27,455)							(27,292)
Other assets		91,553							92,772
Total noninterest-earning assets		87,215							88,569
Total assets	$	2,565,324						$	2,501,821

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits	$	341,991	$	1,622		1.92	%	$	325,151	$	1,653		2.02	%
Savings deposits		495,051		2,593		2.12			510,725		2,909		2.27
Brokered deposits		213,517		1,787		3.39			218,755		1,896		3.45
Time deposits		637,936		6,415		4.08			579,519		6,200		4.26
Total interest-bearing deposits		1,688,495		12,417		2.98			1,634,150		12,658		3.08
Borrowed funds and subordinated debentures		119,135		1,133		3.80			115,314		1,116		3.79
Total interest-bearing liabilities	$	1,807,630	$	13,550		3.04	%	$	1,749,464	$	13,774		3.13	%

Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		425,569							431,034
Other liabilities		29,833							31,032
Total noninterest-bearing liabilities		455,402							462,066
Total shareholders' equity		302,292							290,291
Total liabilities and shareholders' equity	$	2,565,324						$	2,501,821

Net interest spread			$	27,251		3.64	%			$	26,490		3.51	%
Tax-equivalent basis adjustment				-							-
Net interest income			$	27,251						$	26,490
Net interest margin						4.46	%						4.37	%

(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

March 31, 2025


Amounts in thousands, except percentages	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
ALLOWANCE FOR CREDIT LOSSES:
Balance, beginning of period	$	26,788		$	27,002		$	26,107		$	26,080		$	25,854
Provision for credit losses on loans		1,358			470			1,029			266			641
		28,146			27,472			27,136			26,346			26,495
Less: Chargeoffs
SBA loans		350			300			70			-			-
Commercial loans		2			350			46			138			98
Residential mortgage loans		130			150			-			-			-
Consumer loans		50			93			68			130			70
Residential construction loans		-			-			-			-			277
Total chargeoffs		532			893			184			268			445
Add: Recoveries
SBA loans		5			26			7			6			8
Commercial loans		5			171			9			12			12
Residential mortgage loans		-			-			-			-			-
Consumer loans		27			12			34			11			10
Residential construction loans		-			-			-			-			-
Total recoveries		37			209			50			29			30
Net (chargeoffs)/recoveries		(495)			(684)			(134)			(239)			(415)
Balance, end of period	$	27,651		$	26,788		$	27,002		$	26,107		$	26,080

ASSET QUALITY INFORMATION:

Nonaccrual loans:
SBA loans	$	3,231		$	3,850		$	3,646		$	3,813		$	3,542
Commercial loans		4,821			2,974			3,674			2,321			2,415
Residential mortgage loans		8,622			5,711			5,053			5,336			7,440
Consumer loans		-			-			100			105			366
Residential construction loans		171			547			547			547			3,127
Total nonaccrual loans		16,845			13,082			13,020			12,122			16,890
Debt securities available for sale, net of valuation allowance		1,145			1,964			2,859			3,071			-
Nonaccrual assets		17,990			15,046			15,879			15,193			16,890

Loans 90 days past due & still accruing	$	1,123		$	760		$	-		$	373		$	138

Nonaccrual loans to total loans		0.72	%		0.58	%		0.59	%		0.56	%		0.78
Nonaccrual assets to total assets		0.65			0.57			0.60			0.58			0.66

Allowance for credit losses to:
Total loans at quarter end		1.18	%		1.18	%		1.22	%		1.20	%		1.20
Total nonperforming loans		164.15			204.77			207.39			215.37			154.41

UNITY BANCORP, INC.

QUARTERLY FINANCIAL DATA

March 31, 2025


(In thousands, except %'s, employee, office and per share amounts)	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
SUMMARY OF INCOME:
Total interest income	$	40,801		$	40,264		$	39,550		$	37,987		$	37,937
Total interest expense		13,550			13,774			14,694			14,563			14,096
Net interest income		27,251			26,490			24,856			23,424			23,841
Provision for credit losses		1,317			1,300			1,080			926			643
Net interest income after provision for credit losses		25,934			25,190			23,776			22,498			23,198
Total noninterest income		2,101			1,916			2,803			2,032			1,718
Total noninterest expense		12,611			12,617			12,012			11,980			12,132
Income before provision for income taxes		15,424			14,489			14,567			12,550			12,784
Provision for income taxes		3,826			2,984			3,662			3,096			3,198
Net income	$	11,598		$	11,505		$	10,905		$	9,454		$	9,586

Net income per common share - Basic	$	1.15		$	1.15		$	1.09		$	0.94		$	0.95
Net income per common share - Diluted		1.13			1.13			1.07			0.92			0.94

COMMON SHARE DATA:
Market price per share	$	40.70		$	43.61		$	34.06		$	29.57		$	27.60
Dividends paid		0.14			0.13			0.13			0.13			0.13
Book value per common share		30.38			29.48			28.48			27.41			26.56

Weighted average common shares outstanding - Basic		10,054			10,002			9,978			10,016			10,127
Weighted average common shares outstanding - Diluted		10,247			10,204			10,148			10,149			10,276
Issued common shares		11,666			11,616			11,570			11,555			11,555
Outstanding common shares		10,076			10,026			9,980			9,975			10,044
Treasury shares		1,590			1,590			1,590			1,580			1,511

PERFORMANCE RATIOS (Annualized):
Return on average assets		1.83	%		1.83	%		1.76	%		1.56	%		1.58	%
Return on average equity		15.56			15.77			15.55			14.07			14.49
Efficiency ratio**		42.89			44.44			44.23			47.10			47.57

BALANCE SHEET DATA:
Total assets	$	2,767,943		$	2,654,017		$	2,635,319		$	2,597,707		$	2,568,088
Total securities		142,092			145,028			143,712			145,187			138,702
Total loans		2,345,130			2,260,657			2,217,393			2,170,535			2,174,457
Allowance for credit losses		27,651			26,788			27,002			26,107			26,080
Total deposits		2,175,398			2,100,313			2,046,137			2,010,831			1,961,270
Total shareholders' equity		306,142			295,583			284,257			273,395			266,761

TAX EQUIVALENT YIELDS AND RATES:
Interest-earning assets		6.68	%		6.64	%		6.62	%		6.51	%		6.51	%
Interest-bearing liabilities		3.04			3.13			3.34			3.37			3.26
Net interest spread		3.64			3.51			3.28			3.14			3.25
Net interest margin		4.46			4.37			4.16			4.01			4.09

CREDIT QUALITY:
Nonaccrual assets	$	17,990		$	15,046		$	15,879		$	15,193		$	16,890
QTD annualized net (chargeoffs) to QTD average loans		(0.09)	%		(0.12)	%		(0.02)	%		(0.04)	%		(0.08)	%
Allowance for credit losses to total loans		1.18			1.18			1.22			1.20			1.20
Nonaccrual loans to total loans		0.72			0.58			0.59			0.56			0.78
Nonaccrual assets to total assets		0.65			0.57			0.60			0.58			0.66

UNITY BANCORP CAPITAL RATIOS:
Total equity to total assets		11.06	%		11.14	%		10.79	%		10.52	%		10.39	%
Leverage ratio		12.32			12.22			11.94			11.67			11.39
Common Equity Tier 1 Capital Ratio		13.87			13.90			13.50			13.31			12.90
Risk-based Tier 1 Capital Ratio		14.33			14.37			13.98			13.80			13.38
Risk-based Total Capital Ratio		15.58			15.62			15.23			15.05			14.63

Number of banking offices		21			21			21			21			21
Employee Full-Time Equivalent		227			224			222			217			217

** 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

March 31, 2025


In thousands, except percentages	March 31, 2025		%	December 31, 2024		%
Loans Held for Sale	$	14,000	0.6%	$	12,163	0.5%

SBA Loans
SBA loans held for investment		36,686	1.6%		36,859	1.6%
SBA PPP		1,307	0.1%		1,450	0.1%
Total SBA Loans		37,993	1.7%		38,309	1.7%

Commercial Loans
Commercial construction		129,829	5.5%		130,193	5.8%
SBA 504		52,734	2.2%		48,479	2.1%
Commercial & industrial		155,187	6.6%		147,186	6.5%
Commercial mortgage - owner occupied		606,611	26.0%		577,541	25.6%
Commercial mortgage - nonowner occupied		462,817	19.7%		428,600	19.0%
Other		79,676	3.4%		79,630	3.5%
Total Commercial Loans		1,486,854	63.4%		1,411,629	62.5%

Residential Mortgage Loans		654,250	27.9%		630,927	27.9%

Consumer Loans
Home equity		75,646	3.2%		73,223	3.2%
Consumer other		2,974	0.1%		3,488	0.2%
Total Consumer Loans		78,620	3.3%		76,711	3.4%

Residential Construction Loans		73,413	3.1%		90,918	4.0%

Total Gross Loans	$	2,345,130	100.0%	$	2,260,657	100.0%