Unity Bancorp, Inc. (UNTY) SEC Filings & Earnings Calls

Concentration in commercial real estate; one $15.5M relationship accounts for nearly half of nonaccrual assets.

“Isolated $15.5M commercial real estate relationship accounts for nearly half of nonaccrual assets.”

Deposit competition remains intense; cost of deposits may pressure NIM.

“Deposit gathering remains competitive.” · word for word

Leadership transition is planned and orderly, with internal successor and founder remaining on board, minimizing disruption risk.

“multi-year succession planning process... Mr. Hughes will continue to serve on the Boards of Directors”

Tax credits subject to five-year recapture period; potential losses if recapture occurs.

“transferred tax credits remain subject to a five-year recapture period” · word for word

Loss of founding director with decades of institutional knowledge

“Mr. Dallas was a founding member of the Bank and served on the Company's Board since inception” · word for word

Credit quality deterioration

“Nonaccrual loans were $33.0 million at June 30, 2026, a $3.2 million increase from $29.8 million at December 31, 2025 and a $17.2 million increase from $15.8 million at June 30, 2025, respectively.” · word for word

Potential problem loans increase

“Potential problem loans totaled $22.6 million at June 30, 2026, an increase of $11.1 million from $11.5 million at December 31, 2025.” · word for word

Noninterest income volatility

“Noninterest income decreased 67.0 percent compared to the prior year’s quarter, primarily because the quarter ended June 30, 2025 included $3.5 million in one-time realized gains from the sale of Patriot National Bancorp, Inc. common stock.” · word for word

Nonaccrual assets increased, driven by an isolated CRE relationship

“Nonaccrual assets $34.5M vs $31.3M; one $15.5M CRE relationship accounts for nearly half”

Unrealized losses on equity investment in Patriot National Bancorp

“Noninterest income decreased due to larger unrealized losses recognized on investment in Patriot National Bancorp”

Nonaccrual loan increase

“Nonaccrual loans were $30.6 million at March 31, 2026, a $0.8 million increase from $29.8 million at December 31, 2025” · word for word

Deposit mix shift to higher cost

“Noninterest-bearing demand deposits decreased $14.4 million while savings and time deposits increased, potentially increasing funding costs.”

Credit risk: nonaccrual assets elevated at $32.1M, with one $15.5M CRE relationship accounting for nearly half.

“Nonaccrual assets $32.1M; one $15.5M CRE relationship migrated to nonaccrual in Q4 2025.”

Margin pressure: NIM compression of 7bps QoQ, though partly due to day count.

“NIM decreased 7bps to 4.53%.”

Commercial real estate concentration risk

“As of December 31, 2025, total commercial real estate loans, including construction loans, represented 56.6 percent of our loan portfolio.” · word for word

Unseasoned loan portfolio risk

“Approximately 42.1% of our loan portfolio has been originated in the past three years.” · word for word

Deposit concentration in time deposits and wholesale funding

“As of December 31, 2025, the Company had $882.9 million in time deposits, comprising 38.0% of total deposits. Time deposits maturing within one year were $842.4 million, or 95.4% of time deposits and 36.2% of total deposits.” · word for word

SBA program dependency risk

“Our SBA lending program is dependent upon the U.S. federal government.” · word for word

Increase in nonaccrual assets; provision for credit losses increased

“Nonaccrual assets were $31.3 million, compared to $20.5 million as of September 30, 2025; provision for credit losses was $2.2 million vs $1.4 million prior quarter”

Credit quality deterioration

“Nonaccrual loans were $20.5 million at September 30, 2025, a $7.4 million increase from $13.1 million at December 31, 2024” · word for word

Concentration in commercial real estate

“Commercial mortgage - owner occupied and nonowner occupied represent 26.0% and 21.3% of the loan portfolio respectively.”