Unity Bancorp (UNTY) investor relations material

Executive summary

• Net income for Q2 2026 was $14.5 million ($1.42 per diluted share), down from $16.5 million ($1.61 per diluted share) in Q2 2025, but up from $14.3 million in Q1 2026; return on average assets was 2.01% and return on average equity was 15.86% for the quarter.

• Strong core operating performance, balanced loan and deposit growth, and robust capital and liquidity levels contributed to results.

• Total assets grew 7.7% to $3.2 billion since year-end 2025, primarily from increases in loans, prepaid expenses, and cash.

Financial highlights

• Net interest income rose 11.5% year-over-year to $31.8 million, with net interest margin increasing to 4.56% from 4.49% year-over-year; average interest-earning assets up $248.7 million to $2.8 billion.

• Noninterest income was $1.9 million, down 67% year-over-year and $1.0 million from Q1 2026, due to prior-year one-time gains and unrealized losses.

• Noninterest expense decreased to $13.9 million, primarily from lower occupancy and loan-related expenses.

• Book value per share increased to $37.02, up from $34.63 at year-end 2025.

• Effective tax rate was 22.4%, aided by $2.6 million in state tax credits purchased in Q2 2026.

Outlook and guidance

• Management expects continued profitable growth, strong asset quality, and long-term value creation in the second half of 2026, with healthy loan pipelines and deposit gathering efforts.

• Continued competition for deposits and ongoing macroeconomic uncertainty, including interest rate pressures and inflation, are expected.

• Liquidity sources are considered sufficient, but unexpected deposit withdrawals could require increased reliance on secondary funding.