http://xbrl.sec.gov/country/2025#UShttp://fasb.org/us-gaap/2025#LaborAndRelatedExpensehttp://fasb.org/srt/2025#ChiefExecutiveOfficerMember http://fasb.org/srt/2025#PresidentMemberhttp://fasb.org/srt/2025#ChiefExecutiveOfficerMember http://fasb.org/srt/2025#PresidentMember0000920427FYfalsehttp://fasb.org/us-gaap/2025#AccruedLiabilitiesAndOtherLiabilitieshttp://fasb.org/us-gaap/2025#AccruedLiabilitiesAndOtherLiabilitieshttp://www.unitybank.com/20251231#OtherBorrowingsMemberhttp://www.unitybank.com/20251231#OtherBorrowingsMemberhttp://fasb.org/us-gaap/2025#PrepaidExpenseAndOtherAssetshttp://fasb.org/us-gaap/2025#PrepaidExpenseAndOtherAssetshttp://fasb.org/us-gaap/2025#InterestReceivablehttp://fasb.org/us-gaap/2025#InterestReceivable000http://xbrl.sec.gov/stpr/2025#NJhttp://xbrl.sec.gov/stpr/2025#NJhttp://fasb.org/us-gaap/2025#UsefulLifeShorterOfTermOfLeaseOrAssetUtilityMemberhttp://fasb.org/us-gaap/2025#SecuredOvernightFinancingRateSofrMemberhttp://fasb.org/us-gaap/2025#AccruedLiabilitiesAndOtherLiabilitieshttp://xbrl.sec.gov/country/2025#US2022 2023 2024 2025http://fasb.org/us-gaap/2025#UnfundedPlanMemberhttp://fasb.org/us-gaap/2025#NonqualifiedPlanMemberhttp://fasb.org/us-gaap/2025#LaborAndRelatedExpensehttp://fasb.org/us-gaap/2025#UnfundedPlanMemberhttp://fasb.org/us-gaap/2025#NonqualifiedPlanMember0000920427us-gaap:TreasuryStockCommonMember2024-01-012024-12-310000920427us-gaap:TreasuryStockCommonMember2025-01-012025-12-310000920427unty:ShareRepurchasePlan2023AprilPlanMember2025-01-012025-12-310000920427unty:ShareRepurchasePlanRepurchasePlansMember2024-01-012024-12-310000920427unty:ShareRepurchasePlanRepurchasePlansMember2025-12-310000920427unty:ShareRepurchasePlanRepurchasePlansMember2024-12-310000920427us-gaap:TreasuryStockCommonMember2025-12-310000920427us-gaap:RetainedEarningsMember2025-12-310000920427us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithAllowanceForCreditLossParentMember2025-12-310000920427us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-12-310000920427us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2025-12-310000920427us-gaap:TreasuryStockCommonMember2024-12-310000920427us-gaap:RetainedEarningsMember2024-12-310000920427us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithAllowanceForCreditLossParentMember2024-12-310000920427us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-12-310000920427us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-12-310000920427us-gaap:TreasuryStockCommonMember2023-12-310000920427us-gaap:RetainedEarningsMember2023-12-310000920427us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithAllowanceForCreditLossParentMember2023-12-310000920427us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310000920427us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-12-310000920427unty:ExercisePriceRange4Member2025-01-012025-12-310000920427unty:ExercisePriceRange3Member2025-01-012025-12-310000920427unty:ExercisePriceRange2Member2025-01-012025-12-310000920427unty:ExercisePriceRange1Member2025-01-012025-12-310000920427unty:ExercisePriceRange4Member2025-12-310000920427unty:ExercisePriceRange3Member2025-12-310000920427unty:ExercisePriceRange2Member2025-12-310000920427unty:ExercisePriceRange1Member2025-12-3100009204272023-01-012023-12-310000920427unty:EquityCompensationPlans2023EquityCompensationPlanAnd2019EquityCompensationPlanMember2019-04-252025-12-310000920427unty:EquityCompensationPlans2023EquityCompensationPlanAnd2019EquityCompensationPlanMember2025-12-310000920427unty:EquityCompensationPlan2023Member2023-05-050000920427us-gaap:RestrictedStockMember2024-12-310000920427us-gaap:RestrictedStockMemberunty:EquityCompensationPlans2023EquityCompensationPlanAnd2019EquityCompensationPlanMember2019-04-252025-12-310000920427us-gaap:EmployeeStockOptionMember2025-01-012025-12-310000920427unty:ServiceAndLoanFeeIncomeMember2025-01-012025-12-310000920427unty:BranchFeeIncomeMember2025-01-012025-12-310000920427unty:ServiceAndLoanFeeIncomeMember2024-01-012024-12-310000920427unty:BranchFeeIncomeMember2024-01-012024-12-310000920427unty:ElectronicFundsTransferMember2025-12-310000920427unty:ElectronicFundsTransferMember2024-12-310000920427srt:MinimumMemberus-gaap:EquipmentMember2025-12-310000920427srt:MaximumMemberus-gaap:FurnitureAndFixturesMember2025-12-310000920427srt:MaximumMemberus-gaap:EquipmentMember2025-12-310000920427srt:MaximumMemberus-gaap:BuildingMember2025-12-310000920427us-gaap:LeaseholdImprovementsMember2025-12-310000920427us-gaap:LandAndBuildingMember2025-12-310000920427unty:FurnitureFixturesAndEquipmentMember2025-12-310000920427us-gaap:LeaseholdImprovementsMember2024-12-310000920427us-gaap:LandAndBuildingMember2024-12-310000920427unty:FurnitureFixturesAndEquipmentMember2024-12-310000920427us-gaap:InterestRateSwapMember2025-01-012025-12-310000920427us-gaap:InterestRateSwapMember2024-01-012024-12-310000920427us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithAllowanceForCreditLossParentMember2025-01-012025-12-310000920427us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-01-012025-12-310000920427us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2025-01-012025-12-310000920427us-gaap:AociGainLossDebtSecuritiesAvailableForSaleWithAllowanceForCreditLossParentMember2024-01-012024-12-310000920427us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-12-310000920427us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-01-012024-12-310000920427us-gaap:UnfundedLoanCommitmentMember2025-12-310000920427us-gaap:StandbyLettersOfCreditMember2025-12-310000920427us-gaap:CommitmentsToExtendCreditMember2025-12-310000920427us-gaap:UnfundedLoanCommitmentMember2024-12-310000920427us-gaap:StandbyLettersOfCreditMember2024-12-310000920427us-gaap:CommitmentsToExtendCreditMember2024-12-310000920427unty:SubordinatedDebentureJuly242006Memberus-gaap:SubordinatedDebtMember2025-12-310000920427unty:SubordinatedDebentureJuly242006Memberus-gaap:SubordinatedDebtMember2024-12-310000920427us-gaap:SubordinatedDebtMember2025-12-310000920427us-gaap:SubordinatedDebtMember2024-12-310000920427us-gaap:FairValueInputsLevel3Member2025-12-310000920427us-gaap:FairValueInputsLevel3Member2024-12-310000920427srt:MinimumMember2025-12-310000920427srt:MaximumMember2025-12-310000920427us-gaap:StateAndLocalTaxJurisdictionOtherMember2025-01-012025-12-310000920427stpr:NJ2025-01-012025-12-310000920427us-gaap:StateAndLocalTaxJurisdictionOtherMember2024-01-012024-12-310000920427stpr:NJ2024-01-012024-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialRealEstateLoansMemberus-gaap:PaymentDeferralMember2025-01-012025-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialRealEstateLoansMemberus-gaap:InterestRateBelowMarketReductionMember2025-01-012025-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialRealEstateLoansMemberus-gaap:ExtendedMaturityMember2025-01-012025-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialAndIndustrialLoansMemberus-gaap:ExtendedMaturityMember2025-01-012025-12-310000920427unty:ResidentialPortfolioSegmentResidentialMortgageLoansMemberus-gaap:PaymentDeferralMember2025-01-012025-12-310000920427us-gaap:PaymentDeferralMember2025-01-012025-12-310000920427us-gaap:InterestRateBelowMarketReductionMember2025-01-012025-12-310000920427us-gaap:ExtendedMaturityMember2025-01-012025-12-310000920427us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMemberus-gaap:ExtendedMaturityMember2024-01-012024-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialRealEstateLoansMemberus-gaap:PaymentDeferralMember2024-01-012024-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialAndIndustrialLoansMemberus-gaap:ExtendedMaturityMember2024-01-012024-12-310000920427unty:ResidentialPortfolioSegmentResidentialMortgageLoansMemberus-gaap:ExtendedMaturityMember2024-01-012024-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentSmallBusinessAdministrationLoansHeldForInvestmentMemberus-gaap:PaymentDeferralMember2024-01-012024-12-310000920427us-gaap:PaymentDeferralMember2024-01-012024-12-310000920427us-gaap:ExtendedMaturityMember2024-01-012024-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialAndIndustrialLoansMember2025-01-012025-12-310000920427us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2024-01-012024-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialRealEstateLoansMemberus-gaap:PaymentDeferralMember2025-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialRealEstateLoansMemberus-gaap:InterestRateBelowMarketReductionMember2025-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialRealEstateLoansMemberus-gaap:ExtendedMaturityMember2025-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialAndIndustrialLoansMemberus-gaap:ExtendedMaturityMember2025-12-310000920427unty:ResidentialPortfolioSegmentResidentialMortgageLoansMemberus-gaap:PaymentDeferralMember2025-12-310000920427us-gaap:PaymentDeferralMember2025-12-310000920427us-gaap:InterestRateBelowMarketReductionMember2025-12-310000920427us-gaap:ExtendedMaturityMember2025-12-310000920427us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMemberus-gaap:ExtendedMaturityMember2024-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialRealEstateLoansMemberus-gaap:PaymentDeferralMember2024-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialAndIndustrialLoansMemberus-gaap:ExtendedMaturityMember2024-12-310000920427unty:ResidentialPortfolioSegmentResidentialMortgageLoansMemberus-gaap:ExtendedMaturityMember2024-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentSmallBusinessAdministrationLoansHeldForInvestmentMemberus-gaap:PaymentDeferralMember2024-12-310000920427us-gaap:PaymentDeferralMember2024-12-310000920427us-gaap:ExtendedMaturityMember2024-12-310000920427us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-12-310000920427us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-12-310000920427us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMemberus-gaap:FinancialAssetPastDueMember2025-12-310000920427us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMemberus-gaap:FinancialAssetNotPastDueMember2025-12-310000920427us-gaap:ConsumerPortfolioSegmentMemberus-gaap:ConsumerOtherMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-12-310000920427us-gaap:ConsumerPortfolioSegmentMemberus-gaap:ConsumerOtherMemberus-gaap:FinancialAssetPastDueMember2025-12-310000920427us-gaap:ConsumerPortfolioSegmentMemberus-gaap:ConsumerOtherMemberus-gaap:FinancialAssetNotPastDueMember2025-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableSmallBusinessAdministration504LoansMemberus-gaap:FinancialAssetNotPastDueMember2025-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialRealEstateLoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialRealEstateLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialRealEstateLoansMemberus-gaap:FinancialAssetPastDueMember2025-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialRealEstateLoansMemberus-gaap:FinancialAssetNotPastDueMember2025-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialOtherLoansMemberus-gaap:FinancialAssetNotPastDueMember2025-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialAndIndustrialLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialAndIndustrialLoansMemberus-gaap:FinancialAssetPastDueMember2025-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialAndIndustrialLoansMemberus-gaap:FinancialAssetNotPastDueMember2025-12-310000920427us-gaap:PerformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2025-12-310000920427us-gaap:PerformingFinancingReceivableMemberunty:ResidentialPortfolioSegmentResidentialMortgageLoansMember2025-12-310000920427us-gaap:NonperformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2025-12-310000920427us-gaap:NonperformingFinancingReceivableMemberunty:ResidentialPortfolioSegmentResidentialMortgageLoansMember2025-12-310000920427us-gaap:ConsumerPortfolioSegmentMemberus-gaap:ConsumerOtherMember2025-12-310000920427unty:ResidentialPortfolioSegmentResidentialMortgageLoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-12-310000920427unty:ResidentialPortfolioSegmentResidentialMortgageLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-12-310000920427unty:ResidentialPortfolioSegmentResidentialMortgageLoansMemberus-gaap:FinancialAssetPastDueMember2025-12-310000920427unty:ResidentialPortfolioSegmentResidentialMortgageLoansMemberus-gaap:FinancialAssetNotPastDueMember2025-12-310000920427unty:ResidentialPortfolioSegmentResidentialConstructionLoansMemberus-gaap:SubstandardMember2025-12-310000920427unty:ResidentialPortfolioSegmentResidentialConstructionLoansMemberus-gaap:PassMember2025-12-310000920427unty:ResidentialPortfolioSegmentResidentialConstructionLoansMemberus-gaap:FinancialAssetPastDueMember2025-12-310000920427unty:ResidentialPortfolioSegmentResidentialConstructionLoansMemberus-gaap:FinancialAssetNotPastDueMember2025-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForSaleMemberus-gaap:FinancialAssetNotPastDueMember2025-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentSmallBusinessAdministrationLoansHeldForInvestmentMemberus-gaap:SubstandardMember2025-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentSmallBusinessAdministrationLoansHeldForInvestmentMemberus-gaap:SpecialMentionMember2025-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentSmallBusinessAdministrationLoansHeldForInvestmentMemberus-gaap:PassMember2025-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentSmallBusinessAdministrationLoansHeldForInvestmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentSmallBusinessAdministrationLoansHeldForInvestmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentSmallBusinessAdministrationLoansHeldForInvestmentMemberus-gaap:FinancialAssetPastDueMember2025-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentSmallBusinessAdministrationLoansHeldForInvestmentMemberus-gaap:FinancialAssetNotPastDueMember2025-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentMemberus-gaap:FinancialAssetPastDueMember2025-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentMemberus-gaap:FinancialAssetNotPastDueMember2025-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberus-gaap:SubstandardMember2025-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberus-gaap:SpecialMentionMember2025-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberus-gaap:PassMember2025-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableSmallBusinessAdministration504LoansMember2025-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialRealEstateLoansAndOtherLoansMember2025-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialOtherLoansMember2025-12-310000920427unty:CommercialPortfolioSegmentCommercialConstructionLoansMemberus-gaap:PassMember2025-12-310000920427unty:CommercialPortfolioSegmentCommercialConstructionLoansMemberus-gaap:FinancialAssetNotPastDueMember2025-12-310000920427us-gaap:FinancingReceivables60To89DaysPastDueMember2025-12-310000920427us-gaap:FinancingReceivables30To59DaysPastDueMember2025-12-310000920427us-gaap:FinancialAssetPastDueMember2025-12-310000920427us-gaap:FinancialAssetNotPastDueMember2025-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForSaleMember2025-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentMember2025-12-310000920427unty:CommercialPortfolioSegmentCommercialConstructionLoansMember2025-12-310000920427us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-12-310000920427us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-12-310000920427us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMemberus-gaap:FinancialAssetPastDueMember2024-12-310000920427us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMemberus-gaap:FinancialAssetNotPastDueMember2024-12-310000920427us-gaap:ConsumerPortfolioSegmentMemberus-gaap:ConsumerOtherMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-12-310000920427us-gaap:ConsumerPortfolioSegmentMemberus-gaap:ConsumerOtherMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-12-310000920427us-gaap:ConsumerPortfolioSegmentMemberus-gaap:ConsumerOtherMemberus-gaap:FinancialAssetPastDueMember2024-12-310000920427us-gaap:ConsumerPortfolioSegmentMemberus-gaap:ConsumerOtherMemberus-gaap:FinancialAssetNotPastDueMember2024-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableSmallBusinessAdministration504LoansMemberus-gaap:FinancialAssetNotPastDueMember2024-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialRealEstateLoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialRealEstateLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialRealEstateLoansMemberus-gaap:FinancialAssetPastDueMember2024-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialRealEstateLoansMemberus-gaap:FinancialAssetNotPastDueMember2024-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialAndIndustrialLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialAndIndustrialLoansMemberus-gaap:FinancialAssetPastDueMember2024-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialAndIndustrialLoansMemberus-gaap:FinancialAssetNotPastDueMember2024-12-310000920427us-gaap:PerformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2024-12-310000920427us-gaap:PerformingFinancingReceivableMemberunty:ResidentialPortfolioSegmentResidentialMortgageLoansMember2024-12-310000920427us-gaap:PerformingFinancingReceivableMemberunty:ResidentialPortfolioSegmentResidentialConstructionLoansMember2024-12-310000920427us-gaap:NonperformingFinancingReceivableMemberunty:ResidentialPortfolioSegmentResidentialMortgageLoansMember2024-12-310000920427us-gaap:NonperformingFinancingReceivableMemberunty:ResidentialPortfolioSegmentResidentialConstructionLoansMember2024-12-310000920427us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2024-12-310000920427us-gaap:ConsumerPortfolioSegmentMemberus-gaap:ConsumerOtherMember2024-12-310000920427us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMember2024-12-310000920427us-gaap:CommercialPortfolioSegmentMemberus-gaap:SpecialMentionMember2024-12-310000920427us-gaap:CommercialPortfolioSegmentMemberus-gaap:PassMember2024-12-310000920427unty:ResidentialPortfolioSegmentResidentialMortgageLoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-12-310000920427unty:ResidentialPortfolioSegmentResidentialMortgageLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-12-310000920427unty:ResidentialPortfolioSegmentResidentialMortgageLoansMemberus-gaap:FinancialAssetPastDueMember2024-12-310000920427unty:ResidentialPortfolioSegmentResidentialMortgageLoansMemberus-gaap:FinancialAssetNotPastDueMember2024-12-310000920427unty:ResidentialPortfolioSegmentResidentialConstructionLoansMemberus-gaap:FinancialAssetPastDueMember2024-12-310000920427unty:ResidentialPortfolioSegmentResidentialConstructionLoansMemberus-gaap:FinancialAssetNotPastDueMember2024-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForSaleMemberus-gaap:FinancialAssetNotPastDueMember2024-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentSmallBusinessAdministrationLoansHeldForInvestmentMemberus-gaap:SubstandardMember2024-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentSmallBusinessAdministrationLoansHeldForInvestmentMemberus-gaap:SpecialMentionMember2024-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentSmallBusinessAdministrationLoansHeldForInvestmentMemberus-gaap:PassMember2024-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentSmallBusinessAdministrationLoansHeldForInvestmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentSmallBusinessAdministrationLoansHeldForInvestmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentSmallBusinessAdministrationLoansHeldForInvestmentMemberus-gaap:FinancialAssetPastDueMember2024-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentSmallBusinessAdministrationLoansHeldForInvestmentMemberus-gaap:FinancialAssetNotPastDueMember2024-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentMemberus-gaap:FinancialAssetPastDueMember2024-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentMemberus-gaap:FinancialAssetNotPastDueMember2024-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableSmallBusinessAdministration504LoansMember2024-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialRealEstateLoansAndOtherLoansMember2024-12-310000920427unty:CommercialPortfolioSegmentCommercialConstructionLoansMemberus-gaap:FinancialAssetNotPastDueMember2024-12-310000920427us-gaap:FinancingReceivables60To89DaysPastDueMember2024-12-310000920427us-gaap:FinancingReceivables30To59DaysPastDueMember2024-12-310000920427us-gaap:FinancialAssetPastDueMember2024-12-310000920427us-gaap:FinancialAssetNotPastDueMember2024-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForSaleMember2024-12-310000920427unty:CommercialPortfolioSegmentCommercialConstructionLoansMember2024-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMember2025-01-012025-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentMember2024-12-310000920427us-gaap:CommercialPortfolioSegmentMember2025-12-310000920427us-gaap:ConsumerPortfolioSegmentMember2024-12-310000920427us-gaap:CommercialPortfolioSegmentMember2024-12-310000920427us-gaap:ConsumerPortfolioSegmentMember2023-12-310000920427us-gaap:CommercialPortfolioSegmentMember2023-12-310000920427unty:ResidentialPortfolioSegmentResidentialMortgageLoansMember2023-12-310000920427unty:ResidentialPortfolioSegmentResidentialConstructionLoansMember2023-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentSmallBusinessAdministrationLoansHeldForInvestmentMember2023-12-310000920427unty:FederalHomeLoanBankBorrowingsPuttableAdvancesMemberus-gaap:FederalHomeLoanBankAdvancesMember2025-12-310000920427unty:FederalHomeLoanBankBorrowingsNonOvernightFixedRateAdvancesMemberus-gaap:FederalHomeLoanBankAdvancesMember2025-12-310000920427us-gaap:FederalHomeLoanBankAdvancesMember2025-12-310000920427unty:FederalHomeLoanBankBorrowingsPuttableAdvancesMemberus-gaap:FederalHomeLoanBankAdvancesMember2024-12-310000920427unty:FederalHomeLoanBankBorrowingsNonOvernightFixedRateAdvancesMemberus-gaap:FederalHomeLoanBankAdvancesMember2024-12-310000920427us-gaap:FederalHomeLoanBankAdvancesMember2024-12-310000920427us-gaap:RestrictedStockMember2025-12-310000920427us-gaap:CorporateDebtSecuritiesMember2025-12-310000920427us-gaap:RestrictedStockMember2024-12-310000920427us-gaap:CorporateDebtSecuritiesMember2024-12-310000920427us-gaap:CorporateDebtSecuritiesMember2023-12-310000920427us-gaap:CorporateDebtSecuritiesMember2024-01-012024-12-310000920427us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2025-12-310000920427us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000920427us-gaap:RestrictedStockMember2025-12-3100009204272025-07-012025-09-3000009204272025-04-012025-06-3000009204272025-01-012025-03-3100009204272024-10-012024-12-3100009204272024-07-012024-09-3000009204272024-04-012024-06-3000009204272024-01-012024-03-310000920427us-gaap:RetainedEarningsMember2025-01-012025-12-310000920427us-gaap:RetainedEarningsMember2024-01-012024-12-310000920427unty:InterestRateSwapForwardStartingPayFixReceiveFloatInterestRateSwap2025Memberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2025-03-310000920427unty:InterestRateSwapForwardStartingPayFixReceiveFloatInterestRateSwap2025Memberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2025-12-310000920427us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2025-01-012025-12-310000920427us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-01-012024-12-310000920427us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2025-12-310000920427us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2025-12-310000920427us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000920427us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000920427us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2024-01-012024-12-310000920427us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2025-01-012025-12-310000920427us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2024-12-310000920427us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2024-12-310000920427us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2023-12-310000920427srt:MaximumMembersrt:ManagementMember2025-01-012025-12-310000920427srt:MaximumMembersrt:DirectorMember2025-01-012025-12-310000920427unty:StandardPoorsAaaAaRatingMemberus-gaap:ExternalCreditRatingInvestmentGradeMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2025-12-310000920427unty:StandardPoorsAaaAaRatingMemberus-gaap:ExternalCreditRatingInvestmentGradeMemberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2025-12-310000920427unty:StandardPoorsAaaAaRatingMemberus-gaap:ExternalCreditRatingInvestmentGradeMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2025-12-310000920427unty:StandardPoorsAaaAaRatingMemberus-gaap:ExternalCreditRatingInvestmentGradeMember2025-12-310000920427unty:StandardPoorsAaaAaRatingMemberus-gaap:ExternalCreditRatingInvestmentGradeMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2024-12-310000920427unty:StandardPoorsAaaAaRatingMemberus-gaap:ExternalCreditRatingInvestmentGradeMemberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2024-12-310000920427unty:StandardPoorsAaaAaRatingMemberus-gaap:ExternalCreditRatingInvestmentGradeMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2024-12-310000920427unty:StandardPoorsAaaAaRatingMemberus-gaap:ExternalCreditRatingInvestmentGradeMember2024-12-310000920427us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberunty:CorporateDebtSecuritiesAndOtherSecuritiesMember2025-12-310000920427us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2025-12-310000920427us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2025-12-310000920427us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2025-12-310000920427us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesSecuritizedLoansAndReceivablesMember2025-12-310000920427us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberunty:CorporateDebtSecuritiesAndOtherSecuritiesMember2025-12-310000920427us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2025-12-310000920427us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2025-12-310000920427us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2025-12-310000920427us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesSecuritizedLoansAndReceivablesMember2025-12-310000920427us-gaap:FairValueMeasurementsRecurringMemberunty:CorporateDebtSecuritiesAndOtherSecuritiesMember2025-12-310000920427us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2025-12-310000920427us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2025-12-310000920427us-gaap:FairValueMeasurementsRecurringMember2025-12-310000920427us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberunty:CorporateDebtSecuritiesAndOtherSecuritiesMember2024-12-310000920427us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2024-12-310000920427us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2024-12-310000920427us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2024-12-310000920427us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesSecuritizedLoansAndReceivablesMember2024-12-310000920427us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberunty:CorporateDebtSecuritiesAndOtherSecuritiesMember2024-12-310000920427us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2024-12-310000920427us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2024-12-310000920427us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2024-12-310000920427us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesSecuritizedLoansAndReceivablesMember2024-12-310000920427us-gaap:FairValueMeasurementsRecurringMemberunty:CorporateDebtSecuritiesAndOtherSecuritiesMember2024-12-310000920427us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000920427us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000920427us-gaap:FairValueMeasurementsRecurringMember2024-12-310000920427unty:SubordinatedDebentureJuly242006Memberus-gaap:SubordinatedDebtMember2006-07-242006-07-240000920427us-gaap:FairValueInputsLevel2Member2025-12-310000920427us-gaap:CarryingReportedAmountFairValueDisclosureMember2025-12-310000920427us-gaap:FairValueInputsLevel2Member2024-12-310000920427us-gaap:CarryingReportedAmountFairValueDisclosureMember2024-12-310000920427unty:SubordinatedDebentureJuly242006Memberus-gaap:SubordinatedDebtMember2006-07-240000920427us-gaap:AssetPledgedAsCollateralMember2025-12-310000920427us-gaap:AssetPledgedAsCollateralMember2024-12-310000920427us-gaap:CommonStockMember2025-12-310000920427us-gaap:CommonStockMember2024-12-310000920427us-gaap:CommonStockMember2023-12-310000920427us-gaap:CommonStockMember2025-01-012025-12-310000920427us-gaap:CommonStockMember2024-01-012024-12-310000920427us-gaap:AccountingStandardsUpdate202403Member2025-12-310000920427us-gaap:AccountingStandardsUpdate202309Member2025-12-310000920427us-gaap:AccountingStandardsUpdate202307Member2025-12-310000920427srt:ParentCompanyMembersrt:ReportableLegalEntitiesMember2023-12-3100009204272023-12-310000920427srt:SubsidiariesMember2025-12-310000920427srt:SubsidiariesMember2024-12-310000920427us-gaap:USStatesAndPoliticalSubdivisionsMember2025-12-310000920427us-gaap:USStatesAndPoliticalSubdivisionsMember2024-12-310000920427us-gaap:AssetBackedSecuritiesSecuritizedLoansAndReceivablesMember2025-12-310000920427unty:CorporateDebtSecuritiesAndOtherSecuritiesMember2025-12-310000920427us-gaap:AssetBackedSecuritiesSecuritizedLoansAndReceivablesMember2024-12-310000920427unty:CorporateDebtSecuritiesAndOtherSecuritiesMember2024-12-310000920427srt:ParentCompanyMembersrt:ReportableLegalEntitiesMember2025-12-310000920427srt:ParentCompanyMembersrt:ReportableLegalEntitiesMember2024-12-310000920427us-gaap:RestrictedStockMember2025-01-012025-12-310000920427us-gaap:RestrictedStockMember2024-01-012024-12-310000920427us-gaap:EmployeeStockOptionMember2024-01-012024-12-310000920427unty:SubordinatedDebentureJuly242006Memberus-gaap:SubordinatedDebtMember2025-01-012025-12-310000920427srt:MinimumMember2025-01-012025-12-310000920427srt:MaximumMember2025-01-012025-12-310000920427srt:ParentCompanyMembersrt:ReportableLegalEntitiesMember2025-01-012025-12-310000920427srt:ParentCompanyMembersrt:ReportableLegalEntitiesMember2024-01-012024-12-310000920427us-gaap:ResidentialMortgageBackedSecuritiesMember2025-12-310000920427us-gaap:ResidentialMortgageBackedSecuritiesMember2024-12-310000920427us-gaap:ConsumerPortfolioSegmentMember2025-01-012025-12-310000920427us-gaap:CommercialPortfolioSegmentMember2025-01-012025-12-310000920427unty:ResidentialPortfolioSegmentResidentialMortgageLoansMember2025-01-012025-12-310000920427unty:ResidentialPortfolioSegmentResidentialConstructionLoansMember2025-01-012025-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentSmallBusinessAdministrationLoansHeldForInvestmentMember2025-01-012025-12-310000920427us-gaap:ConsumerPortfolioSegmentMember2024-01-012024-12-310000920427us-gaap:CommercialPortfolioSegmentMember2024-01-012024-12-310000920427unty:ResidentialPortfolioSegmentResidentialMortgageLoansMember2024-01-012024-12-310000920427unty:ResidentialPortfolioSegmentResidentialConstructionLoansMember2024-01-012024-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentSmallBusinessAdministrationLoansHeldForInvestmentMember2024-01-012024-12-310000920427us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityLoanMember2025-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialRealEstateLoansMember2025-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialAndIndustrialLoansMember2025-12-310000920427us-gaap:ConsumerPortfolioSegmentMember2025-12-310000920427unty:ResidentialPortfolioSegmentResidentialMortgageLoansMember2025-12-310000920427unty:ResidentialPortfolioSegmentResidentialConstructionLoansMember2025-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentSmallBusinessAdministrationLoansHeldForInvestmentMember2025-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMember2025-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialRealEstateLoansMember2024-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMemberunty:ClassOfFinancingReceivableCommercialAndIndustrialLoansMember2024-12-310000920427unty:ResidentialPortfolioSegmentResidentialMortgageLoansMember2024-12-310000920427unty:ResidentialPortfolioSegmentResidentialConstructionLoansMember2024-12-310000920427unty:FinancingReceivablePortfolioSegmentLoansHeldForInvestmentSmallBusinessAdministrationLoansHeldForInvestmentMember2024-12-310000920427unty:CommercialPortfolioSegmentCommercialLoansMember2024-12-310000920427us-gaap:RestrictedStockMember2025-01-012025-12-310000920427us-gaap:CorporateDebtSecuritiesMember2025-01-012025-12-3100009204272006-07-240000920427us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2025-12-310000920427us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-12-310000920427us-gaap:DefinedBenefitPostretirementLifeInsuranceMember2025-12-310000920427us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2024-01-012024-12-310000920427us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2025-01-012025-12-310000920427us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2025-12-310000920427us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2025-12-310000920427us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2025-12-310000920427us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2024-12-310000920427us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2025-12-310000920427us-gaap:FairValueMeasurementsNonrecurringMember2025-12-310000920427us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2024-12-310000920427us-gaap:FairValueMeasurementsNonrecurringMember2024-12-3100009204272024-01-012024-12-3100009204272025-12-3100009204272024-12-310000920427unty:ShareRepurchasePlan2024AugustPlanMember2024-08-010000920427unty:ShareRepurchasePlan2023AprilPlanMember2023-04-2700009204272025-10-012025-12-3100009204272025-06-3000009204272026-02-2700009204272025-01-012025-12-31unty:Officexbrli:sharesiso4217:USDxbrli:pureunty:securityunty:installmentunty:itemiso4217:USDxbrli:sharesunty:contractunty:segment

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

FOR ANNUAL AND TRANSITIONAL REPORTS PURSUANT TO

SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

(Mark One)

☒ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2025

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to ________

Commission file number 1-12431

Unity Bancorp, Inc.

(Exact Name of Registrant as Specified in Its Charter)

New Jersey		22-3282551
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

64 Old Highway 22, Clinton, NJ		08809
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code (908) 730-7630

Securities registered pursuant to Section 12(b) of the Exchange Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock	UNTY	NASDAQ

Securities registered pursuant to Section 12(g) of the Exchange Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes ☐ No ☒

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☒
Non-accelerated filer ☐	Smaller reporting company ☒
	Emerging Growth Company ☐

If an emerging growth company, indicate by checkmark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared its audit report.

Yes ☒ No ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company as defined in Rule 12b-2 of the Exchange Act.

Yes ☐ No ☒

As of June 30, 2025, the aggregate market value of the registrant’s Common Stock, no par value per share, held by non-affiliates of the registrant was $338,659,526 and 7,193,278 shares of the Common Stock were outstanding to non-affiliates. As of February 27, 2026, 10,016,427 shares of the registrant’s Common Stock were outstanding.

Documents incorporated by reference:

●

Portions of Unity Bancorp’s Proxy Statement for the Annual Meeting of Shareholders to be filed no later than 120 days from December 31, 2025 are incorporated by reference into Part III of this Annual Report on Form 10-K.

Table of Contents

Index to Form 10-K

t
			Page
Part I
Item 1.	Business
	a) General		3
Item 1A.	Risk Factors		11
Item 1B.	Unresolved Staff Comments		24
Item 1C.	Cybersecurity Disclosures		24
Item 2.	Properties		26
Item 3.	Legal Proceedings		26
Item 4.	Mine Safety Disclosures		26
Item 4A.	Executive Officers of the Registrant		26

Part II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities		26
Item 6.	Selected Financial Data		27
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		27
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk		52
Item 8.	Financial Statements, Report of Independent Auditor (PCAOB ID: 392) and Supplementary Data		53
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure		110
Item 9A.	Controls and Procedures		111
Item 9B.	Other Information – None		111
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections		111

Part III
Item 10.	Directors, Executive Officers and Corporate Governance; Compliance with Section 16(a) of the Exchange Act		111
Item 11.	Executive Compensation		112
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters		113
Item 13.	Certain Relationships and Related Transactions and Director Independence		113
Item 14.	Principal Accountant Fees and Services		113

Part IV
Item 15.	Exhibits and Financial Statement Schedules		115
Item 16.	Form 10-K Summary		116
	Signatures		117

Table of Contents

PART I

Item 1. Business:

Forward Looking Statements

This report, in Item 1, Item 7 and elsewhere, includes forward-looking statements within the meaning of Sections 27A of the Securities Act of 1933, as amended, and 21E of the Securities Exchange Act of 1934, as amended, that involve inherent risks and uncertainties. These forward-looking statements concern the financial condition, results of operations, plans, objectives, future performance and business of Unity Bancorp, Inc. and its subsidiaries, including statements preceded by, followed by or that include words or phrases such as “believes,” “expects,” “anticipates,” “plans,” “trend,” “objective,” “continue,” “remain,” “pattern” or similar expressions or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions. There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) the potential impact of pandemics and other health emergencies and the government’s response thereto on our operations as well as those of our clients and on the economy generally and in our market area specifically; (2) competitive and technological pressures among financial institutions may increase significantly; (3) changes in the interest rate environment may reduce interest margins; (4) prepayment speeds, loan origination and sale volumes, charge-offs and credit loss provisions may vary substantially from period to period; (5) general economic conditions may be less favorable than expected; (6) political developments, wars or other hostilities may disrupt or increase volatility in securities markets or other economic conditions; (7) legislative or regulatory changes or actions may adversely affect the businesses in which Unity Bancorp, Inc. is engaged; (8) changes and trends in the securities markets may adversely impact Unity Bancorp, Inc.; (9) a delayed or incomplete resolution of regulatory issues could adversely impact us; (10) difficulties in integrating any businesses that we may acquire, which may increase our expenses and delay the achievement of any benefits that we may expect from such acquisitions; (11) the impact of reputation risk created by the developments discussed above on such matters as business generation and retention, funding and liquidity could be significant; and (12) the outcome of any future regulatory and legal investigations and proceedings may not be anticipated; and (13) risks associated with generative artificial intelligence technology. Further information on other factors that could affect the financial results of Unity Bancorp, Inc. are included in Item 1A of this Annual Report on Form 10-K and in Unity Bancorp, Inc.’s other filings with the Securities and Exchange Commission. These documents are available free of charge at the Commission’s website at http://www.sec.gov and/or from Unity Bancorp, Inc. Unity Bancorp, Inc. assumes no obligation to update forward-looking statements at any time.

General

Unity Bancorp, Inc., ("we", "us", "our", the "Company" or "Registrant"), is a bank holding company incorporated under the laws of the State of New Jersey to serve as a holding company for Unity Bank (the “Bank”). The Company has also elected to become a financial holding company pursuant to regulations of the Board of Governors of the Federal Reserve system (the "FRB"). The Company was organized at the direction of the Board of Directors of the Bank for the purpose of acquiring all the capital stock of the Bank. Pursuant to the New Jersey Banking Act of 1948 (the "Banking Act"), and pursuant to approval of the shareholders of the Bank, the Company acquired the Bank and became its holding company on December 1, 1994. The primary activity of the Company is ownership and supervision of the Bank. The Company also owns 100 percent of the common equity of Unity (NJ) Statutory Trust II. The trust has issued $10.3 million of preferred securities to investors.

The principal executive offices of the Company are located at 64 Old Highway 22, Clinton, New Jersey 08809 and the telephone number is (800) 618-2265. The Company’s website address is www.unitybank.com.

Business of the Company

The Company’s primary business is ownership and supervision of the Bank. The Company and the Bank derive a majority of their revenue from net interest income (i.e., the difference between the interest received on loans and securities and the interest paid on deposits and borrowings). The Company, through the Bank, conducts a traditional and community-

Table of Contents

oriented commercial banking business and offers services, including personal and business checking accounts, time deposits, money market accounts, savings accounts, credit cards, debit cards, wire transfers, safe deposit boxes, access to automated teller services and internet and mobile banking, typical of a community banking business. The Bank also offers retirement accounts, Automated Clearing House (“ACH”) origination and Remote Deposit Capture (“RDC”). CDARS/ICS reciprocal deposits are offered based on the Bank’s participation in the IntraFi Network LLC network which enable Federal Deposit Insurance Corporation (“FDIC”) insurance sensitive customers to have FDIC coverage for large dollar deposits. The Company structures its specific services and charges in a manner designed to attract the business of the small and medium sized business, professional community and state and local municipalities, as well as that of individuals residing, working and shopping in its service area.

Deposits serve as the primary source of funding for interest-earning assets, but also generate noninterest income through treasury solution fees, merchant fees, stop payment fees, wire transfer fees, insufficient fund fees, debit/credit card income, foreign ATM fees, interchange and other miscellaneous fees. In addition, the Bank generates additional noninterest income through residential, commercial and Small Business Administration (“SBA”) loan originations, servicing and sales.

The Company engages in a wide range of lending activities and offers commercial, SBA, consumer, mortgage, home equity and personal loans. Commercial lending is primarily comprised of owner-occupied and non-owner occupied commercial mortgages and is supplemented by commercial and industrial lending activities, secured by business assets including real estate, receivables, inventory and equipment. Additionally, the Company engages in commercial and residential construction lending activities. A significant majority of the Company’s loans are real-estate secured.

Service Areas

The Company’s primary service area is defined as the neighborhoods served by the Bank’s offices. The Bank’s main office is located in Clinton, New Jersey and the Bank operates twenty-two branches primarily along the Route 22/Route 78 corridors with branches in Bergen, Hunterdon, Middlesex, Morris, Ocean, Somerset, Union and Warren counties in New Jersey and Northampton County in Pennsylvania. Through its banking locations and online services, the Bank is able to support clients throughout the New York City metropolitan area. The Company’s goal is to continue to expand as needed to support clients as their businesses grow.

Competition

The banking business is highly competitive. The Company is located in an extremely competitive area. The Company’s service area is also serviced by national banks, major regional banks, large thrift institutions, financial technology companies and a variety of credit unions. In addition, since passage of the Gramm-Leach-Bliley Financial Modernization Act of 1999 (the “Modernization Act”), securities firms and insurance companies have been allowed to acquire or form financial institutions, thereby increasing competition in the financial services market. Most of the Company’s competitors have substantially more capital, and therefore greater lending limits than the Company. The Company’s competitors generally have established positions in the service area and have greater resources than the Company with which to pay for advertising, technologies, physical facilities, personnel and interest on deposited funds. The Company relies on the competitive pricing of its loans, deposits and other services, as well as its ability to provide local decision-making and personal service in order to compete with these larger institutions.

Employees and Human Capital

As of December 31, 2025, the Company employed 239 full‑time and 6 part‑time employees. None of the Company’s employees are represented by collective bargaining units. The Company believes its relations with employees are good and that its ability to attract and retain talent is critical to its success. To support this objective, the Company strives to offer competitive salaries and comprehensive employee benefits and regularly monitors compensation levels within its market areas. The Company provides medical benefits through a self‑insured health plan. In addition, the principal purposes of the Company’s equity incentive plans are to attract, retain, and motivate selected employees, consultants, and directors through the granting of stock‑based compensation awards.

Table of Contents

SUPERVISION AND REGULATION

General Supervision and Regulation

Bank holding companies and banks are extensively regulated under both federal and state law and these laws are subject to change. As an example, in the summer of 2010, Congress passed, and the President signed, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) (discussed below). These laws and regulations are intended to protect depositors, not stockholders. To the extent that the following information describes statutory and regulatory provisions, it is qualified in its entirety by reference to the particular statutory and regulatory provisions. Any change in the applicable law or regulation may have a material effect on the business and prospects of the Company and the Bank. Management of the Company is unable to predict, at this time, the impact of future changes to laws and regulations.

General Bank Holding Company Regulation

General: As a bank holding company registered under the Bank Holding Company Act of 1956, as amended, (the "BHCA"), the Company is subject to the regulation and supervision of the FRB. The Company is required to file with the FRB annual reports and other information regarding its business operations and those of its subsidiaries. Under the BHCA, activities of a holding company and those of its subsidiaries are limited to banking, managing or controlling banks, furnishing services to or performing services for its subsidiaries or engaging in any other activity which the FRB determines to be so closely related to banking or managing or controlling banks as to be properly incident thereto. However, as a financial holding company, the Company may engage in a broader scope of activities. See "Financial Holding Company Status".

The BHCA requires, among other things, the prior approval of the FRB in any case where a bank holding company proposes to; (i) acquire all or substantially all the assets of any other bank; (ii) acquire direct or indirect ownership or control of more than 5% of the outstanding voting stock of any bank (unless it owns a majority of such bank’s voting shares); or (iii) merge or consolidate with any other bank holding company. The FRB will not approve any acquisition, merger or consolidation that would have a substantially anti-competitive effect, unless the anti-competitive impact of the proposed transaction is clearly outweighed by a greater public interest in meeting the convenience and needs of the community to be served. The FRB also considers capital adequacy, as well as other financial and management resources, and future prospects of the companies and banks concerned, along with the convenience and needs of the community to be served.

The BHCA also generally prohibits a bank holding company, with certain limited exceptions, from; (i) acquiring or retaining direct or indirect ownership or control of more than 5% of the outstanding voting stock of any company which is not a bank or bank holding company; or (ii) engaging directly or indirectly in activities other than those of banking, managing or controlling banks, or performing services for its subsidiaries, unless such non-banking business is determined by the FRB to be so closely related to banking or managing or controlling banks as to be properly incident thereto. In making such determinations, the FRB is required to weigh the expected benefits to the public such as greater convenience, increased competition or gains in efficiency, against the possible adverse effects such as undue concentration of resources, decreased or unfair competition, conflicts of interest or unsound banking practices.

The BHCA was substantially amended through the Modernization Act. The Modernization Act permits bank holding companies and banks, which meet certain capital, management and Community Reinvestment Act standards, to engage in a broader range of non-banking activities. In addition, bank holding companies, which elect to become financial holding companies, may engage in certain banking and non-banking activities without prior FRB approval. Finally, the Modernization Act imposes certain privacy requirements on all financial institutions and their treatment of consumer information. The Company has elected to become a financial holding company. See "Financial Holding Company Status" below.

There are a number of obligations and restrictions imposed on bank holding companies and their depository institution subsidiaries by law and regulatory policy that are designed to minimize potential loss to the depositors of such depository institutions and the Federal Deposit Insurance Corporation (the “FDIC”) Deposit Insurance Fund in the event the

Table of Contents

depository institution becomes in danger of default. Under regulations of the FRB, a bank holding company is required to serve as a source of financial strength to its subsidiary depository institutions and to commit resources to support such institutions in circumstances where it might not do so absent such policy. The FRB also has the authority under the BHCA to require a bank holding company to terminate any activity or to relinquish control of a non-bank subsidiary upon the FRB’s determination that such activity or control constitutes a serious risk to the financial soundness and stability of any bank subsidiary of the bank holding company.

Capital Adequacy Guidelines

In December 2010 and January 2011, the Basel Committee on Banking Supervision (the “Basel Committee”) published the final reforms on capital and liquidity generally referred to as “Basel III.” In July 2013, the FRB, the FDIC and the Comptroller of the Currency adopted final rules (the “New Rules”), which implement certain provisions of Basel III and the Dodd-Frank Act.

Under the New Rules, the Bank is required to maintain the following minimum capital ratios, expressed as a percentage of risk-weighted assets:

●

Common Equity Tier 1 Capital Ratio of 4.5% (the “CET1”);

●

Tier 1 Capital Ratio (CET1 capital plus “Additional Tier 1 capital”) of 6.0%;

●

Total Capital Ratio (Tier 1 capital plus Tier 2 capital) of 8.0%.

In addition, the Bank is also subject to a leverage ratio of 4% (calculated as Tier 1 capital to average consolidated assets as reported on the consolidated financial statements).

The New Rules also require a “capital conservation buffer.” The Bank is required to maintain a 2.5% capital conservation buffer, which is composed entirely of CET1, on top of the minimum risk-weighted asset ratios described above, resulting in the following minimum capital ratios:

●

CET1 of 7%;

●

Tier 1 Capital Ratio of 8.5%;

●

Total Capital Ratio of 10.5%.

The purpose of the capital conservation buffer is to absorb losses during periods of economic stress. Banking institutions with a CET1, Tier 1 Capital Ratio and Total Capital Ratio above the minimum set forth above but below the capital conservation buffer will face constraints on their ability to pay dividends, repurchase equity and pay discretionary bonuses to executive officers, based on the amount of the shortfall.

The New Rules provide for several deductions from and adjustments to CET1. For example, mortgage servicing rights, deferred tax assets dependent upon future taxable income and significant investments in common equity issued by nonconsolidated financial entities must be deducted from CET1 to the extent that any one of those categories exceeds 10% of CET1 or all such categories in the aggregate exceed 15% of CET1.

Under the New Rules, banking organizations, such as the Company and the Bank, may make a one-time permanent election regarding the treatment of accumulated other comprehensive income items in determining regulatory capital ratios. Effective as of January 1, 2015, the Company and the Bank elected to exclude accumulated other comprehensive income items for purposes of determining regulatory capital.

While the New Rules generally require the phase-out of non-qualifying capital instruments such as trust preferred securities and cumulative perpetual preferred stock, holding companies with less than $15 billion in total consolidated assets as of December 31, 2009, such as the Company, may permanently include non-qualifying instruments that were issued and included in Tier 1 or Tier 2 capital prior to May 19, 2010 in Additional Tier 1 or Tier 2 capital until they redeem such instruments or until the instruments mature.

Table of Contents

The New Rules prescribe a standardized approach for calculating risk-weighted assets. Depending on the nature of the assets, the risk categories generally range from 0% for U.S. Government and agency securities to 600% for certain equity exposures and result in higher risk weights for a variety of asset categories. In addition, the New Rules provide more advantageous risk weights for derivatives and repurchase-style transactions cleared through a qualifying central counterparty and increase the scope of eligible guarantors and eligible collateral for purposes of credit risk mitigation.

Consistent with the Dodd-Frank Act, the New Rules adopt alternatives to credit ratings for calculating the risk-weighting for certain assets.

On September 17, 2019, the federal banking agencies issued a final rule providing simplified capital requirements for certain community banking organizations (banks and holding companies) with less than $10 billion in total consolidated assets, implementing provisions of The Economic Growth, Regulatory Relief, and Consumer Protection Act (“EGRRCPA”). Under the rule, a qualifying community banking organization would be eligible to elect the community bank leverage ratio framework, or continue to measure capital under the existing Basel III requirements set forth in the New Rules. The community bank capital rule took effect January 1, 2020 and qualifying community banking organizations may elect to opt into the new community bank leverage ratio (“CBLR”) in their call report for the first quarter of 2020 or any quarter thereafter.

A qualifying community banking organization (“QCBO”) is defined as a bank, a savings association, a bank holding company or a savings and loan holding company with:

●

a leverage capital ratio of greater than 9.0%;

●

total consolidated assets of less than $10.0 billion;

●

total off-balance sheet exposures (excluding derivatives other than credit derivatives and unconditionally cancelable commitments) of 25% or less of total consolidated assets;

●

total trading assets and trading liabilities of 5% or less of total consolidated assets.

A QCBO opting into the CBLR must maintain a CBLR of 9.0%, subject to a two quarter grace period to come back into compliance, provided that the QCBO maintains a leverage ratio of more than 8.0% during the grace period. A QCBO failing to satisfy these requirements must comply with the Basel III requirements as implemented by the New Rules. The numerator of the CBLR is Tier 1 capital, as calculated under the New Rules. The denominator of the CBLR is the QCBO’s average assets, calculated in accordance with the QCBO’s Call Report instructions and less assets deducted from Tier 1 capital. The Company and the Bank have elected to opt out of the CBLR.

General Bank Regulation

As a New Jersey-chartered commercial bank, the Bank is subject to the regulation, supervision and control of the New Jersey Department of Banking and Insurance (the “Department”). As an FDIC-insured institution, the Bank is subject to regulation, supervision and control of the FDIC, an agency of the federal government. The regulations of the FDIC and the Department affect virtually all activities of the Bank, including the Bank's minimum capital level, the Bank's ability to pay dividends, expand through new branches or acquisitions and various other matters.

Insurance of Deposits: The Dodd-Frank Act has caused significant changes in the FDIC’s insurance of deposit accounts. Among other things, the Dodd-Frank Act permanently increased the FDIC deposit insurance limit to $250 thousand per depositor.

On February 7, 2011, the FDIC announced the approval of the assessment system mandated by the Dodd-Frank Act. Dodd-Frank required that the base on which deposit insurance assessments are charged be revised from one based on domestic deposits to one based on assets. The FDIC’s rule to base the assessment on average total consolidated assets minus average tangible equity instead of domestic deposits lowered assessments for many community banks with less than $10 billion in assets and reduced the Company’s costs.

Dividend Rights: Under the Banking Act, a bank may declare and pay dividends only if, after payment of the dividend, the capital stock of the bank will be unimpaired and either the bank will have a surplus of not less than 50% of its capital

Table of Contents

stock or the payment of the dividend will not reduce the bank’s surplus. Unless and until the Company develops other lines of business, payments of dividends from the Bank will remain the Company’s primary source of income and the primary source of funds for dividend payments to the shareholders of the Company.

Dodd-Frank Wall Street Reform and Consumer Protection Act

The Dodd-Frank Act, enacted on July 21, 2010, significantly changed the bank regulatory landscape and has impacted and will continue to impact the lending, deposit, investment, trading and operating activities of insured depository institutions and their holding companies. The Dodd-Frank Act requires various federal agencies to adopt a broad range of new rules and regulations. The Dodd-Frank Act, among other things:

●

capped debit card interchange fees for institutions with $10 billion in assets or more at $0.21 plus 5 basis points times the transaction amount, a substantially lower rate than the average rate in effect prior to adoption of the Dodd-Frank Act;

●

provided for an increase in the FDIC assessment for depository institutions with assets of $10 billion or more, increases in the minimum reserve ratio for the Deposit Insurance Fund ("DIF") from 1.15% to 1.35% and changes the basis for determining FDIC premiums from deposits to assets;

●

permanently increased the deposit insurance coverage to $250 thousand and allowed depository institutions to pay interest on checking accounts;

●

created a new Consumer Financial Protection Bureau (“CFPB”) that has rulemaking authority for a wide range of consumer financial protection laws that apply to all banks and has broad authority to enforce these laws;

●

provided for new disclosure and other requirements relating to executive compensation and corporate governance;

●

changed standards for Federal preemption of state laws related to federally-chartered institutions and their subsidiaries;

●

provided mortgage reform provisions regarding a customer’s ability to repay, restricting variable rate lending by requiring the ability to repay to be determined for variable rate loans by using the maximum rate that will apply during the first five years of a variable rate loan term, and making more loans subject to provisions for higher cost loans, new disclosures and certain other revisions;

●

created a financial stability oversight council that will recommend to the FRB increasingly strict rules for capital, leverage, liquidity, risk management and other requirements as companies grow in size and complexity.

The Dodd-Frank Act also imposed new obligations on originators of residential mortgage loans, such as the Bank. Among other things, the Dodd-Frank Act requires originators to make a reasonable and good faith determination based on documented information that a borrower has a reasonable ability to repay a particular mortgage loan over the long term. If the originator cannot meet this standard, the mortgage may be unenforceable. The Dodd-Frank Act contains an exception from this ability-to-repay rule for “Qualified Mortgages”. The CFPB has established specific underwriting criteria for a loan to qualify as a Qualified Mortgage. The criteria generally exclude loans that (1) are interest-only, (2) have excessive upfront points or fees or (3) have negative amortization features, balloon payments or terms in excess of 30 years. The underwriting criteria also impose a maximum debt to income ratio of 43%, based upon documented and verifiable information. If a loan meets these criteria and is not a “higher priced loan” as defined in FRB regulations, the CFPB rule establishes a safe harbor preventing a consumer from asserting the failure of the originator to establish the consumer’s ability to repay. However, a consumer may assert the lender’s failure to comply with the ability-to-repay rule for all residential mortgage loans other than Qualified Mortgages, and may challenge whether a loan in fact qualified as a Qualified Mortgage.

Regulation W

Regulation W codifies prior regulations under Sections 23A and 23B of the Federal Reserve Act and interpretative guidance with respect to affiliate transactions. Affiliates of a bank include, among other entities, the bank’s holding company and companies that are under common control with the bank. The Company is considered to be an affiliate of the Bank. In general, subject to certain specified exemptions, a bank or its subsidiaries are limited in their ability to engage in covered transactions with affiliates:

Table of Contents

B
	•	to an amount equal to 10% of the Bank’s capital and surplus, in the case of covered transactions with any one affiliate; and

	•	to an amount equal to 20% of the Bank’s capital and surplus, in the case of covered transactions with all affiliates.

In addition, a bank and its subsidiaries may engage in covered transactions and other specified transactions only on terms and under circumstances that are substantially the same, or at least as favorable to the bank or its subsidiary, as those prevailing at the time for comparable transactions with nonaffiliated companies. A covered transaction includes:

	•	a loan or extension of credit to an affiliate;

	•	a purchase of, or an investment in, securities issued by an affiliate;

	•	a purchase of assets from an affiliate, with some exceptions;

	•	the acceptance of securities issued by an affiliate as collateral for a loan or extension of credit to any party; and

	•	the issuance of a guarantee, acceptance or letter of credit on behalf of an affiliate.

Further, under Regulation W:

	•	a bank and its subsidiaries may not purchase a low-quality asset from an affiliate;

	•	covered transactions and other specified transactions between a bank or its subsidiaries and an affiliate must be on terms and conditions that are consistent with safe and sound banking practices; and

	•	with some exceptions, each loan or extension of credit by a bank to an affiliate must be secured by certain types of collateral with a market value ranging from 100% to 130% of the loan value, depending on the type of collateral, of the amount of the loan or extension of credit.

Regulation W generally excludes all non-bank and non-savings association subsidiaries of banks from treatment as affiliates, except to the extent that the FRB decides to treat these subsidiaries as affiliates.

Loans to Related Parties

The Company’s authority to extend credit to its directors and executive officers, as well as to entities controlled by such persons, is currently governed by the requirements of the Sarbanes-Oxley Act of 2002 and Regulation O promulgated by the FRB. Among other things, these provisions require that extensions of credit to insiders (i) be made on terms that are substantially the same as, and follow credit underwriting procedures that are not less stringent than, those prevailing for comparable transactions with unaffiliated persons and that do not involve more than the normal risk of repayment or present other unfavorable features and (ii) not exceed certain limitations on the amount of credit extended to such persons, individually and in the aggregate, which limits are based, in part, on the amount of the Bank’s capital. In addition, the Bank’s Board of Directors must approve all extensions of credit to insiders.

USA PATRIOT Act

The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the “USA PATRIOT Act”) gives the federal government powers to address terrorist threats through domestic security measures, surveillance powers, information sharing and anti-money laundering requirements. By way of

Table of Contents

amendments to the Bank Secrecy Act, the USA PATRIOT Act encourages information-sharing among bank regulatory agencies and law enforcement bodies. Further, certain provisions of the USA PATRIOT Act impose affirmative obligations on a broad range of financial institutions, including banks, thrift institutions, brokers, dealers, credit unions, money transfer agents and parties registered under the Commodity Exchange Act.

Among other requirements, the USA PATRIOT Act imposes the following requirements with respect to financial institutions:


	●	All financial institutions must establish anti-money laundering programs that include, at a minimum: (i) internal policies, procedures and controls; (ii) specific designation of an anti-money laundering compliance officer; (iii) ongoing employee training programs; and (iv) an independent audit function to test the anti-money laundering program.

	●	The Secretary of the Department of Treasury, in conjunction with other bank regulators, is authorized to issue regulations that provide for minimum standards with respect to client identification at the time new accounts are opened.

	●	Financial institutions that establish, maintain, administer, or manage private banking accounts or correspondent accounts in the United States for non-United States persons or their representatives (including foreign individuals visiting the United States) are required to establish appropriate, specific and, where necessary, enhanced due diligence policies, procedures, and controls designed to detect and report money laundering.

	●	Financial institutions are prohibited from establishing, maintaining, administering or managing correspondent accounts for foreign shell banks (foreign banks that do not have a physical presence in any country), and will be subject to certain record keeping obligations with respect to correspondent accounts of foreign banks.

	●	Bank regulators are directed to consider a holding company’s effectiveness in combating money laundering when ruling on Federal Reserve Act and Bank Merger Act applications.

The United States Treasury Department has issued a number of implementing regulations which address various requirements of the USA PATRIOT Act and are applicable to financial institutions such as the Bank. These regulations impose obligations on financial institutions to maintain appropriate policies, procedures and controls to detect, prevent and report money laundering and terrorist financing and to verify the identity of their clients.

Financial Holding Company Status

The Company has elected to become a financial holding company. Financial holding companies may engage in a broader scope of activities than a bank holding company. In addition, financial holding companies may undertake certain activities without prior FRB approval.

A financial holding company may affiliate with securities firms and insurance companies and engage in other activities that are financial in nature or incidental or complementary to activities that are financial in nature. "Financial in nature" activities include:

●

securities underwriting, dealing and market making;

●

sponsoring, mutual funds and investment companies;

●

insurance underwriting and insurance agency activities;

●

merchant banking;

●

activities that the FRB determines to be financial in nature or incidental to a financial activity or which are complementary to a financial activity and do not pose a safety and soundness risk.

Table of Contents

A financial holding company that desires to engage in activities that are financial in nature or incidental to a financial activity but not previously authorized by the FRB must obtain approval from the FRB before engaging in such activity. Also, a financial holding company may seek FRB approval to engage in an activity that is complementary to a financial activity, if it shows, among other things, that the activity does not pose a substantial risk to the safety and soundness of its insured depository institutions or the financial system.

A financial holding company generally may acquire a company (other than a bank holding company, bank or savings association) engaged in activities that are financial in nature or incidental to activities that are financial in nature without prior approval from the FRB. Prior FRB approval is required, however, before the financial holding company may acquire control of more than 5% of the voting shares or substantially all of the assets of a bank holding company, bank or savings association. In addition, under the FRB’s merchant banking regulations, a financial holding company is authorized to invest in companies that engage in activities that are not financial in nature, as long as the financial holding company makes its investment with the intention of limiting the duration of the investment, does not manage the company on a day-to-day basis and the company does not cross-market its products or services with any of the financial holding company’s controlled depository institutions.

If any subsidiary bank of a financial holding company ceases to be "well capitalized" or "well managed" and fails to correct its condition within the time period that the FRB specifies, the FRB has authority to order the financial holding company to divest its subsidiary banks. Alternatively, the financial holding company may elect to limit its activities and the activities of its subsidiaries to those permissible for a bank holding company that is not a financial holding company. If any subsidiary bank of a financial holding company receives a rating under the CRA of less than "satisfactory", then the financial holding company is prohibited from engaging in new activities or acquiring companies other than bank holding companies, banks or savings associations until the rating is raised to "satisfactory" or better.

Artificial Intelligence. State and federal regulatory agencies have begun adopting rules and guidelines regarding the use of artificial intelligence (“AI”) technologies in connection with the provision of financial services. For example, the CFPB and other federal bank regulatory agencies have provided guidance that creditors may be subject to adverse action notice requirements under the Equal Credit Opportunity Act even if they rely on algorithmic underwriting models. The New York State Department of Financial Services issued an industry letter on combating cybersecurity risks associated with AI. Additionally, on January 23, 2025, President Trump issued an executive order aimed at reducing barriers to AI innovation in the U.S. economy. The executive order requires relevant persons and bodies within the federal government to develop an AI action plan to carry out this objective and revokes an AI-related executive order issued in 2023 by President Biden, as well as all corresponding policies, regulations, orders, directives, and other actions taken in response to such order.

Item 1A. Risk Factors:

The Company’s business, financial condition, results of operations and the trading price of its securities can be materially and adversely affected by many events and conditions including the following:

The Company has been and may continue to be affected by national financial markets and economic conditions, as well as local conditions.

The Company’s business and results of operations are affected by the financial markets and general economic conditions in the United States, including factors such as the level and volatility of interest rates, inflation, home prices, unemployment and under-employment levels, bankruptcies, household income, consumer spending, investor confidence and the strength of the U.S. economy. The deterioration of any of these conditions can adversely affect the Company’s securities and loan portfolios, level of charge-offs and provision for credit losses, capital levels, liquidity and results of operations.

In addition, the Company is affected by the economic conditions within its New Jersey and Pennsylvania primary trade areas. Unlike larger banks that are more geographically diversified, the Company provides banking and financial services primarily to customers in the New Jersey market and one county in Pennsylvania in which it has branches, so any decline in the economy of New Jersey or eastern Pennsylvania could have an adverse impact. Additionally, certain aspects of these primary trade areas may be adversely impacted by the economic wellbeing of the New York City metro region.

Table of Contents

The Company’s loans, the ability of borrowers to repay these loans and the value of collateral securing these loans are impacted by economic conditions. The Company’s financial results, the credit quality of its existing loan portfolio and the ability to generate new loans with acceptable yield and credit characteristics may be adversely affected by changes in prevailing economic conditions, including declines in real estate values, changes in interest rates, adverse employment conditions and the monetary and fiscal policies of the federal government. The Company cannot assure that any positive trends or developments discussed in this annual report will continue or that negative trends or developments will not arise.

A significant portion of the Company’s loan portfolio is secured by real estate and events that negatively impact the real estate market in the Company’s trade area could hurt its business.

A significant portion of the Company’s loan portfolio is secured by real estate. As of December 31, 2025, approximately 96 percent of its loans had real estate as a primary and/or secondary component of collateral. The real estate collateral in each case provides an alternate source of repayment in the event of default by the borrower and may deteriorate in value during the time the credit is extended. Weakness in the real estate market in the Company’s primary market areas could result in an increase in the number of borrowers who default on their loans and a reduction in the value of the collateral securing their loans, which in turn could have an adverse effect on the Company’s profitability, capital and asset quality. Any future declines in real estate values in the New Jersey, New York and Pennsylvania markets that the Company serves also may result in increases in delinquencies and losses in its loan portfolios. Further, such declines in real estate values could impact values in the Company’s debt securities investment portfolio, ultimately resulting in an adverse effect on the Company’s profitability, capital and asset quality. Stress in the real estate market, combined with any weakness in economic conditions could drive losses beyond that which is provided for in the Company’s allowance for credit losses. In that event, the Company’s earnings and capital could be adversely affected.

Furthermore, stress in the real estate market could severely impact the Company’s ability to sell residential mortgage loans and SBA 7a loans on the secondary market. The inability to sell such loans would adversely impact the Company’s noninterest revenue and hence negatively impact earnings and capital.

A significant portion of the Company’s loan portfolio is secured by commercial real estate and events that negatively impact the commercial real estate market could adversely affect our asset quality and profitability for those loans secured by real property and increase the number of defaults and the level of losses within our loan portfolio.

A significant portion of the Company’s loan portfolio is secured by commercial real estate. As of December 31, 2025, total commercial real estate loans, including construction loans, represented 56.6 percent of our loan portfolio. Included in this portfolio are loans to industries including hotel/motel, food/beverage services, educational facilities, retail, warehouse, office, religious facilities, automotive, healthcare facilities, gas station and educational facilities. Additionally, mixed-use loans, in their hybrid nature, may include these industries, as well as others not denoted above. These types of loans generally expose a lender to a higher degree of credit risk of non-payment and loss than residential mortgage loans due to several factors, including dependence on the successful operation of a business or a project for repayment. Further, the Company facilitates construction-to-permanent financing, which may come with heightened credit risks. In addition, commercial real estate loans typically involve larger loan balances to single borrowers or groups of related borrowers compared to one-to-four family residential mortgage loans. The value of the real estate collateral that provides an alternate source of repayment in the event of default by the borrower could deteriorate during the time the credit is extended. Underwriting, portfolio management activities and other credit administration functions, cannot completely eliminate all risks related to these loans. Any significant failure to pay on time by our clients or a significant default by our clients would materially and adversely affect us.

Concentrations in commercial real estate are closely monitored by regulatory agencies and subject to especially heightened scrutiny both on a public and confidential basis. Any formal or informal action by our supervisors may require us to increase our reserves on these loans and adversely impact our earnings and capital.

A downturn in the real estate market in our primary market areas could result in an increase in the number of borrowers who default on their loans and a reduction in the value of the collateral securing their loans, which in turn could have an adverse effect on our profitability and asset quality. If we are required to liquidate the collateral securing a loan to satisfy

Table of Contents

the debt during a period of reduced real estate values, our earnings and shareholders’ equity could be adversely affected. Any weakening of the commercial real estate market may increase the likelihood of default on these loans, which could negatively impact our loan portfolio’s performance and asset quality. For example, any declines in commercial real estate prices in the New Jersey, New York and Pennsylvania markets we primarily serve, along with the unpredictable long-term path of the economy, may result in increases in delinquencies and losses in our loan portfolios. Unexpected decreases in commercial real estate prices coupled with slow economic growth and elevated levels of unemployment could drive losses beyond those which are provided for in our allowance for credit losses. We also may incur losses on commercial real estate loans due to declines in occupancy rates and rental rates, which may decrease property values and may decrease the likelihood that a borrower may find permanent financing alternatives. Any of these events could increase our costs, require Management's time and attention, and materially and adversely affect us.

Small Business Administration lending is an important part of our business. Our SBA lending program is dependent upon the U.S. federal government, and we face specific risks associated with originating SBA loans.

Our SBA lending program is dependent upon the U.S. federal government. The SBA periodically reviews the lending operations of participating lenders to assess, among other things, whether the lender exhibits prudent risk management. When weaknesses are identified, the SBA may request corrective actions or impose enforcement actions. Any changes to the SBA program, including but not limited to changes to the level of guarantee provided by the federal government on SBA loans, changes to ongoing SBA servicing related expenses, changes to program specific rules impacting volume eligibility under the guaranty program, as well as changes to the program amounts authorized by Congress or funding for the SBA program may also have a material adverse effect on our business. In addition, any default by the U.S. government on its obligations or any prolonged government shutdown could, among other things, impede our ability to originate SBA loans or sell such loans in the secondary market, which could materially and adversely affect our business, results of operations and financial condition.

The SBA’s 7(a) Loan Program is the SBA’s primary program for helping start-up and existing small businesses, with financing guaranteed for a variety of general business purposes. Typically, we sell the guaranteed portion of our SBA 7(a) loans in the secondary market. These sales result in premium income for us at the time of sale and create a stream of future servicing income, as we retain the servicing rights to these loans. For the reasons described above, we may not be able to continue originating these loans or selling them in the secondary market. Furthermore, even if we are able to continue to originate and sell SBA 7(a) loans in the secondary market, we might not continue to realize premiums upon the sale of the guaranteed portion of these loans or the premiums may decline due to economic and competitive factors. When we originate SBA loans, we incur credit risk on the non-guaranteed portion of the loans, and if a customer defaults on a loan, we share any loss and recovery related to the loan pro-rata with the SBA. If the SBA establishes that a loss on an SBA guaranteed loan is attributable to significant technical deficiencies in the manner in which the loan was originated, funded or serviced by us, the SBA may seek recovery of the principal loss related to the deficiency from us. Generally, we do not maintain reserves or loss allowances for such potential claims and any such claims could materially and adversely affect our business, financial condition or results of operations.

The laws, regulations and standard operating procedures that are applicable to SBA loan products may change in the future. We cannot predict the effects of these changes on our business and profitability. Because government regulation greatly affects the business and financial results of all commercial banks and bank holding companies and especially our organization, changes in the laws, regulations and procedures applicable to SBA loans could adversely affect our ability to operate profitably.

The non-guaranteed portion of SBA loans that we retain on our balance sheet as well as the guaranteed portion of SBA loans that we sell could expose us to various credit and default risks.

We have historically originated a significant number of SBA loans, and sold a significant portion of the guaranteed portions of these loans on the secondary market. We generally retain the non-guaranteed portions of the SBA loans that we originate. Consequently, as of December 31, 2025, we held $34.3 million of SBA loans on our balance sheet, $5.4 million of which primarily consisted of the non-guaranteed portion of SBA loans. The non-guaranteed portion of SBA loans have a higher degree of credit risk and risk of loss as compared to the guaranteed portion of such loans. We generally retain the

Table of Contents

non-guaranteed portions of the SBA loans that we originate and sell, and to the extent the borrowers of such loans experience financial difficulties, our financial condition and results of operations would be adversely impacted.

When we sell the guaranteed portion of SBA loans in the ordinary course of business, we are required to make certain representations and warranties to the purchaser about the SBA loans and the manner in which they were originated. Under these agreements, we may be required to repurchase the guaranteed portion of the SBA loan if we have breached any of these representations or warranties, in which case we may record a loss. In addition, if repurchase and indemnity demands increase on loans that we sell from our portfolio, our liquidity, results of operations and financial condition could be adversely affected.

Imposition of limits by bank regulators on commercial real estate lending activities could curtail our growth and adversely affect our earnings.

In 2006, the OCC, the FDIC, and the FRB, or collectively, the Agencies, issued joint guidance entitled “Concentrations in Commercial Real Estate Lending, Sound Risk Management Practices,” or the “CRE Guidance.” Although the CRE Guidance did not establish specific lending limits, it provides that a bank’s commercial real estate lending exposure will receive increased supervisory scrutiny where total nonowner occupied commercial real estate loans, including loans secured by apartment buildings, investor commercial real estate, and construction and land loans, represent 300% or more of an institution’s total risk-based capital, and the outstanding balance of the commercial real estate loan portfolio has increased by 50% or more during the preceding 36 months. Using regulatory guidance definitions, the Bank’s commercial real estate loan balance was $868.9 million at December 31, 2025 and commercial real estate loans represented 231.92% of the Bank’s risk-based capital at December 31, 2025, a decrease from 235.05% at December 31, 2024.

In December 2015, the Agencies released a new statement on prudent risk management for commercial real estate lending, or the “2015 Statement.” In the 2015 Statement, the Agencies, among other things, indicated the intent to continue “to pay special attention” to commercial real estate lending activities and concentrations going forward. If the FDIC, our primary federal regulator, were to impose restrictions on the amount of such loans we can hold in our portfolio or require us to implement additional compliance measures, for reasons noted above or otherwise, our earnings could be adversely affected as would our earnings per share.

There is a risk that the Company may not be repaid in a timely manner, or at all, for loans it makes or securities it holds.

The risk of nonpayment (or deferred or delayed payment) of loans is inherent in banking. Such nonpayment, or delayed or deferred payment, of loans to the Company may have a material adverse effect on its earnings and overall financial condition, such as increased provision for credit losses, asset recovery costs and lower interest income. Additionally, in compliance with applicable banking laws and regulations and U.S. Generally Accepted Accounting Principles (“ U.S. GAAP”), the Company maintains an allowance for credit losses created through charges against earnings. As of December 31, 2025, the Company’s allowance for credit losses was $32.3 million, or 1.27 percent of its total loan portfolio and 108.40 percent of its nonaccrual loans. The Company’s marketing focus on small to medium size businesses may result in the assumption by the Company of certain lending risks that are different from or greater than those which would apply to loans made to larger companies. The Company seeks to minimize its credit risk exposure through credit controls, which include evaluation of potential borrowers’ available collateral, liquidity, cash flow and debt service coverage (both individually and globally). However, there can be no assurance that such procedures will actually reduce credit losses.

The risk of nonpayment (or deferred or delayed payment) on securities is also inherent in banking. Such nonpayment, or delayed or deferred payment on securities held by the Company, if they occur may have a material adverse effect on the Company’s earnings and overall financial condition. The Company seeks to minimize its credit risk exposure on securities through ongoing monitoring and credit controls, which evaluate the financial condition of the issuer of the securities. However, there can be no assurance that such procedures will actually reduce credit losses.

Table of Contents

The Company’s allowance for credit losses may not be adequate to cover actual losses.

Like all financial institutions, the Company maintains an allowance for credit losses to provide for loan defaults and nonperformance. Its allowance for credit losses may not be adequate to cover actual losses and future provisions for credit losses could materially and adversely affect the results of operations. Risks within the loan portfolio are analyzed on a continuous basis by Management and, periodically, by an independent loan review function as overseen by the Audit Committee. A risk system, consisting of multiple-grading categories, is utilized as an analytical tool to assess risk and the appropriate level of credit loss reserves. Along with the risk system, Management further evaluates risk characteristics of the loan portfolio under current economic conditions and considers such factors as the financial condition of the borrowers, past and expected credit loss experience, historical trends and other factors that Management feels deserve recognition in establishing an adequate reserve. This risk assessment process is performed at least quarterly and, as adjustments become necessary, they are realized in the periods in which they become known. The amount of future losses is susceptible to changes in economic, operating and other conditions, including changes in interest rates that may be beyond the Company’s control, and these losses may exceed current estimates. State and federal regulatory agencies, as an integral part of their examination process, review the Company’s loans and allowance for credit losses and may require an increase in its allowance for credit losses. Although the Company believes that its allowance for credit losses is adequate to cover probable and reasonably estimated losses, there can be no assurance that the Company will not further increase the allowance for credit losses or that its regulators will not require an increase to this allowance. Either of these occurrences could adversely affect the Company’s earnings.

The Company is subject to interest rate risk and variations in interest rates may negatively affect its financial performance.

Net interest income, the difference between interest earned on interest-earning assets and interest paid on interest-bearing liabilities, represents a significant portion of the Company’s earnings. Both increases and decreases in the interest rate environment may reduce the Company’s profits. Interest rates are subject to factors which are beyond the Company’s control, including general economic conditions, competition and policies of various governmental and regulatory agencies, such as the FRB. Changes in monetary policy, including changes in interest rates and/or quantitative easing or tightening protocols, could influence not only the interest the Company receives on loans and investment securities and the amount of interest it pays on deposits and borrowings, but such changes could also affect (i) the ability to originate loans and obtain deposits, (ii) the fair value of financial assets and liabilities, including the held to maturity and available for sale securities portfolios and (iii) the average duration of interest-earning assets. This also includes the risk that interest-earning assets may be more responsive to changes in interest rates than interest-bearing liabilities, or vice versa (repricing risk), the risk that the individual interest rates or rate indexes underlying various interest-earning assets and interest-bearing liabilities may not change in the same degree over a given time period (basis risk) and the risk of changing interest rate relationships across the spectrum of interest-earning asset and interest-bearing liability maturities (yield curve risk). The Company monitors interest rate risk through its asset liability management process; however, there are no assurances that this process will reduce interest rate risk exposures.

The banking business is subject to significant government regulations.

The Company is subject to extensive governmental supervision, regulation and control. These laws and regulations are subject to change and may require substantial modifications to the Company’s operations or may cause it to incur substantial additional compliance costs. These laws and regulations are designed to protect depositors and the public, but not the Company’s shareholders. In addition, future legislation and government policy could adversely affect the commercial banking industry and the Company’s operations. Such governing laws can be anticipated to continue to be the subject of future modification. The Company’s Management cannot predict what effect any such future modifications will have on the Company’s operations. In addition, the primary focus of federal and state banking regulation is the protection of depositors and not the shareholders of the regulated institutions.

For example, the Dodd-Frank Act has resulted in substantial compliance costs and may restrict certain sources of revenue. The Dodd-Frank Act was signed into law on July 21, 2011. Generally, the Act is effective the day after it is signed into law, but different effective dates apply to specific sections of this law, many of which will not become effective until various Federal regulatory agencies have promulgated rules implementing the statutory provisions. In addition, subsequent

Table of Contents

legislation and regulatory action has, and future legislation and regulatory action may, amend or revise various provisions of the Dodd-Frank Act.

Uncertainty remains as to the ultimate impact of the Dodd-Frank Act and the implementing regulations thereunder, which could have a material adverse impact either on the financial services industry as a whole, or on the Company’s business, results of operations and financial condition. It is difficult to predict at this time what specific impact certain provisions and yet-to-be-finalized rules and regulations will have on the Company, including any regulations promulgated by the CFPB. Financial reform legislation and rules could have adverse implications on the financial industry, the competitive environment and the Company’s ability to conduct business. Management will have to apply resources to ensure compliance with all applicable provisions of regulatory reforms, including the Dodd-Frank Act and any implementing rules, which may increase the Company’s costs of operations and adversely impact its earnings.

The provisions of the Dodd-Frank Act, as well as any other aspects of current or proposed regulatory or legislative changes to laws or regulations applicable to the financial industry, may impact the profitability of business activities and may change certain business practices, including the ability to offer new products, obtain financing, attract deposits, make loans and achieve satisfactory interest spreads, and could expose the Company to additional costs, including increased compliance costs. These changes also may require the Company to invest significant management attention and resources to make any necessary changes to operations in order to comply, and could therefore also materially and adversely affect business, financial condition and results of operations.

The Company is subject to changes in accounting policies or accounting standards.

Understanding the Company’s accounting policies is fundamental to understanding its financial results. Some of these policies require the use of estimates and assumptions that may affect the value of assets or liabilities and financial results. The Company has identified its accounting policies regarding the allowance for credit losses to be critical because they require Management to make difficult, subjective and complex judgments about matters that are inherently uncertain. Under these policies, it is possible that materially different amounts would be reported under different conditions, using different assumptions, or as new information becomes available.

From time to time, the Financial Accounting Standards Board (“FASB”) and the U.S. Securities and Exchange Commission (“SEC”) change their guidance governing the form and content of the Company’s external financial statements. In addition, accounting standard setters and those who interpret U.S. GAAP, such as the FASB, SEC, banking regulators and the Company’s outside auditors, may change or even reverse their previous interpretations or positions on how these standards should be applied. Such changes are expected to continue. Changes in U.S. GAAP and changes in current interpretations are beyond the Company’s control, can be hard to predict and could materially impact how it reports financial results and condition. In certain cases, the Company could be required to apply a new or revised guidance retroactively or apply existing guidance differently, which may result in restating prior period financial statements for material amounts. Additionally, significant changes to U.S. GAAP may require costly technology changes, additional training and personnel and other expenses that would negatively impact results of operations.

We are dependent on the use of data and modeling in our management’s decision-making, and faulty data or modeling approaches could negatively impact our decision-making ability or possibly subject us to regulatory scrutiny in the future.

The use of statistical and quantitative models, and other quantitative and qualitative analyses, is necessary for bank decision-making, and the employment of such analyses is becoming increasingly widespread in our operations.

Liquidity stress testing, interest rate sensitivity analysis, the identification of possible violations of anti-money laundering regulations and the estimation of credit losses are all examples of areas in which we are dependent on models and the data that underlies them. The use of statistical and quantitative models is also becoming more prevalent in regulatory compliance. While we are not currently subject to annual Dodd-Frank stress testing and the Comprehensive Capital Analysis and Review submissions, we anticipate that model-derived testing may become more extensively implemented by regulators in the future.

Table of Contents

We anticipate data-based modeling will penetrate further into bank decision-making, particularly risk management efforts, as the capacities developed to meet rigorous stress testing requirements are able to be employed more widely and in differing applications. While we believe these quantitative techniques and approaches improve our decision-making, they also create the possibility that faulty data or flawed quantitative approaches could negatively impact our decision-making ability or, if we become subject to regulatory stress-testing in the future, adverse regulatory scrutiny. Secondarily, because of the complexity inherent in these approaches, misunderstanding or misuse of their outputs could similarly result in suboptimal decision-making.

There is the risk that the Company will be insufficiently liquid to meet its obligations as they come due.

Liquidity risk is the potential that the Company will be unable to meet its obligations as they come due because of an inability to liquidate assets or obtain adequate funding on a timely basis, at a reasonable cost and within acceptable risk tolerances.

Liquidity is required to fund various obligations, including credit commitments to borrowers, mortgage and other loan originations, withdrawals by depositors, repayment of borrowings, dividends to shareholders, operating expenses and capital expenditures.

Liquidity is derived primarily from deposit growth and retention; principal and interest payments on loans; principal and interest payments on investment securities; sale, maturity and prepayment of investment securities; net cash provided from operations and access to other funding sources. Customer account balances can decrease when customers perceive alternative investments, such as fixed income securities or money market funds, as providing a better risk/return trade off or if customers are concerned about the safety of their deposits. If customers move money out of bank deposits and into other investments, or if customers perceive a risk in leaving their deposits with the Bank and transfer the deposits to larger institutions seen as less risky, the Company could lose a low-cost source of funds, increasing its funding costs and reducing the Company’s net interest income and net income.

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. Additionally, as of December 31, 2025, uninsured or uncollateralized deposits represented 21.7% of total deposits. The Company’s liquidity position could be impacted by these deposits if its customers decide to withdraw funds at maturity and invest in non-deposit products, including but not limited to U.S. Treasuries, money market funds and other alternative sources. Additionally, the Company’s earnings could be impacted if interest rates increase and the Company needs to increase the rates offered on deposits to retain these funds. The Company’s management and Board of Directors monitors the deposit composition of its Consolidated Balance Sheet through various Board and Management reporting on a regular basis.

The Company maintains elevated wholesale funding balances, including brokered deposits, FHLB advances and other borrowing and deposit sources. These types of wholesale funding typically result in higher funding costs compared to other sources and reduce the Company’s net interest income and net income. Additionally, these sources typically are only available to the Company if the Bank maintains certain capital levels. The Company’s management team monitors wholesale funding as a composition of its Consolidated Balance Sheet via the risk management process; however, wholesale deposits may be more prone to liquidity risk.

The Company’s access to funding sources in amounts adequate to finance its activities could be impaired by factors that affect the Company specifically or the financial services industry in general. Factors that could detrimentally impact access to liquidity sources include a decrease in the level of business activity due to persistent weakness, or downturn, in the economy or adverse regulatory action against the Company. The Company’s ability to borrow could also be impaired by factors that are not necessarily specific to it, such as a severe disruption of the financial markets or negative views and expectations about the prospects for the financial services industry as a whole.

There are current proposals from the Federal Housing Finance Agency (“FHFA”), the regulatory of the Federal Home Loan Bank (“FHLB”) system, to refocus on the FHLB’s housing mission. This proposal would require many banks to hold at least 10% of their assets in residential mortgages in order to maintain access to FHLB funding. If these proposals change

Table of Contents

or progress, this could impact the Company’s ability to borrow from the FHLB and require it to find other sources of credit, including borrowing directly from the FRB.

The Company is in competition with many other banks, including larger commercial banks which have greater resources, as well as “fintech” companies for loan and deposit customers.

The banking industry within the State of New Jersey is highly competitive. The Company’s principal market area is also served by branch offices of large commercial banks and thrift institutions. In addition, the Modernization Act permits other financial entities, such as insurance companies and securities firms, to acquire or form financial institutions, thereby further increasing competition. In addition, financial technology companies, either directly or in partnership with other insured depository institutions, compete for loan and deposit customers. Similarly, larger legacy non-financial companies, such as Apple, Alphabet and Amazon, are further increasing competition to compete for loans, deposits and payments. A number of the Company’s competitors have substantially greater resources than it does to expend upon advertising and marketing, and their substantially greater capitalization enables them to make much larger loans. Additionally, many of these competitors have less regulation than the Company as they are not financial institutions. The Company’s success depends a great deal upon its judgment that large and mid-size financial institutions do not adequately serve small businesses in its principal market area and upon the Company’s ability to compete favorably for such customers. In addition to competition from larger institutions, the Company also faces competition for individuals and small businesses from small community banks seeking to compete as “hometown” institutions. Most of these smaller institutions have focused their marketing efforts on the smaller end of the small business market the Company serves.

In January 2022, the Federal Reserve issued “Money Payments: The U.S. Dollar in the Age of Digital Transformation” which discusses a U.S. central bank digital currency (“CBDC”). While this is in the earliest of stages, if this CBDC is implemented by the Federal Reserve, it could change banking on a larger scale as Americans would be able to transact directly with the Federal Reserve and may not need Banks to serve as intermediaries.

The Company has also been active in competing for New Jersey governmental and municipal deposits. At December 31, 2025, the Company held approximately $444.9 million in governmental and municipal deposits. The governor of New Jersey has proposed that the state form and own a bank in which governmental and municipal entities would deposit their excess funds, with the state owned bank then financing small businesses and municipal projects in New Jersey. While no legislation has been introduced in the state legislature, the New Jersey Public Bank Implementation Board has provided its final recommendations to the governor, including that the public bank entity should not be a depository institution but should seek funding from a diverse range of investors and non-depository investment vehicles. However, should this proposal be adopted and a state owned bank formed, it could impede the Company’s ability to attract and retain governmental and municipal deposits, thereby impairing the Company’s liquidity.

The emergence of U.S. dollar–denominated stablecoins and the evolving legislative and regulatory landscape governing them—including recently proposed and enacted federal frameworks such as the GENIUS Act and other stablecoin specific bills—may adversely affect our deposit base, liquidity profile, and competitive position.

As stablecoins become more widely adopted for payments and value storage, customers may shift funds from traditional bank deposits into digital assets, potentially reducing our low cost funding sources and increasing our reliance on more expensive or volatile funding alternatives. New legislation could also impose operational, compliance, cybersecurity, or reporting requirements on financial institutions that interact with stablecoin issuers, custodians, or users. The pace and direction of regulatory change remain uncertain, and future rules could materially impact our ability to compete, our cost structure, or the behavior of our customers. Any of these developments could adversely affect our business, financial condition, and results of operations.

The nature and growth rate of our loan portfolio may expose us to increased lending risks.

Given the significant growth in our loan portfolio, many of our loans are unseasoned, meaning that they were originated relatively recently. Approximately 42.1% of our loan portfolio has been originated in the past three years. As a result, it may be difficult to predict the future performance of our loan portfolio. These loans may have delinquency or charge-off levels above our expectations, which could negatively affect our performance.

Table of Contents

Additionally, although the majority of residential mortgages historically originated by the Bank would be considered Qualified Mortgages, the Bank has and may continue to make residential mortgage loans that would not qualify. As a result, the Bank might experience increased compliance costs, loan losses, litigation related expenses and delays in taking title to real estate collateral, if these loans do not perform and borrowers challenge whether the Bank satisfied the ability-to-repay rule upon originating the loan.

Future offerings of common stock or debt securities may adversely affect the market price of the Company’s stock.

In the future, if the Company’s or the Bank’s capital ratios fall below the prevailing regulatory minimums, or if the Company seeks to pursue growth opportunities such as acquisitions, the Company or the Bank may be required to raise additional capital through offerings of common stock, preferred stock, subordinated debt, senior debt, or other capital instruments. Any such equity offerings may dilute the holdings of existing shareholders or reduce the market price of the Company’s common stock, or both. Debt offerings could increase the Company’s interest expense, impose restrictive covenants, or otherwise adversely affect the Company’s financial condition. There can be no assurance that any such capital could be raised on acceptable terms, or at all. Future offerings of common stock may adversely affect the market price of the Company’s stock.

The Company cannot predict how changes in technology will impact its business.

The financial services market, including banking services, is increasingly affected by advances in technology, including developments in:

●

telecommunications;

●

data processing;

●

artificial intelligence, (“AI”);

●

automation;

●

Internet-based banking;

●

Stablecoins and other crypto currencies;

●

Tele-banking;

●

debit cards/smart cards

The Company’s ability to compete successfully in the future will depend on whether it can anticipate and respond to technological changes. Due to the rise of AI, technological advances are occurring in the industry at an unprecedented pace. To develop these and other new technologies and protect against cyber security threats, the Company will likely have to make additional capital investments. Although the Company continually invests in new technology, it cannot assure that it will have sufficient resources or access to the necessary proprietary technology to remain competitive in the future.

The Company’s information systems may experience an interruption or breach in security.

The Company relies heavily on communications and information systems to conduct its business. Any failure, interruption or breach in security of these systems could result in failures or disruptions in the Company’s customer-relationship management, general ledger, deposit, loan and other systems.

The Company is further exposed to the risk that its external vendors may be unable to fulfill their contractual obligations (or will be subject to the same risk of fraud or operational errors by their respective employees) and to the risk that the Company’s (or its vendors’) business continuity and data security systems prove to be inadequate. The Company maintains a system of comprehensive policies and a control framework designed to monitor vendor risks including, among other things, (i) changes in the vendor’s organizational structure or internal controls; (ii) changes in the vendor’s financial condition; (iii) changes in the vendor’s support for existing products and services and (iv) changes in the vendor’s strategic focus. In addition, the Company maintains cyber liability insurance to mitigate against certain losses it may incur.

Table of Contents

While the Company has policies and procedures designed to prevent or limit the effect of the failure, interruption or security breach of its information systems, there can be no assurance that any such failures, interruptions or security breaches will not occur; or, if they do occur, that they will be adequately addressed. Further cyber risk exposure will likely remain elevated in the future as a result of the Company’s expansion of internet and mobile banking tools and new product roll out. The occurrence of any failures, interruptions or security breaches of the Company’s information systems could damage the Company’s reputation, result in a loss of customer business, subject the Company to additional regulatory scrutiny or expose the Company to civil litigation and possible financial liability; any of which could have a material adverse effect on the Company’s financial condition and results of operations.

The Company maintains an incident response and business continuity framework, which is periodically tested through tabletop exercises involving executive management, senior leadership and other critical business functions. These exercises are intended to support effective decision making, communication and coordination during cybersecurity or operational incidents; however, there can be no assurance that such measures will be effective in all circumstances.

For further information, please refer to Item 1C in this document.

The Company’s business strategy could be adversely affected if it is not able to attract and retain skilled employees and manage expenses.

The Company expects to continue to experience growth in the scope of its operations and, correspondingly, in the number of its employees and customers. The Company may not be able to successfully manage its business as a result of the strain on Management and operations that may result from this growth. The Company’s ability to manage this growth will depend upon its ability to continue to attract, hire and retain skilled employees. The Company’s success will also depend on the ability of its officers and key employees to continue to implement and improve operational and other systems, to manage multiple, concurrent customer relationships and to hire, train and manage employees. Further, given the rise of “remote” and “hybrid” working models, the Company is in competition with more companies and industries for employee retention. The Company’s potential inability to retain key employees could have a material adverse effect on its financial condition and results of operations. As a community banking organization, the Company is highly reliant on key employees, including its Chief Executive Officer, President, Chief Financial Officer, heads of key operational areas, area managers, business development officers and loan officers. The loss of these employees could have an adverse impact on the Company’s operating capacities and the ability to implement growth strategies and adversely impact the financial performance.

Pandemic or other health related events may have a material adverse effect on operations and financial condition.

The outbreak of disease or other health related events on a regional, national or global level and the government’s reaction to such events, may have a material adverse effect on commerce, which may, in turn impact the Company’s lines of business as well as the businesses of its customers.

Climate change, hurricanes, flooding, earthquakes, terrorism or other adverse events could negatively affect local economies or disrupt operations, which would have an adverse effect on the Company’s business or results of operations.

There is an increasing concern over the risks of climate change and related environmental sustainability matters. Climate change presents (i) physical risks from the direct impacts of changing climate patterns and acute weather events and (ii) transition risks from changes in regulations, disruptive technologies, and shifting market dynamics towards a lower carbon economy. The physical risks of climate change include discrete events such as hurricanes, flooding, earthquakes that can disrupt the Company’s operations, result in damage to its properties and negatively affect the local economies in which it operates. Ongoing legislative or regulatory uncertainties and changes regarding climate risk management and practices may result in higher regulatory, compliance, credit and reputational risks and costs. Climate change could also present incremental risks to the execution of the Company’s long-term strategy. Additionally, transitioning to a low-carbon economy may entail extensive policy, legal, technology and market initiatives.

Table of Contents

In addition, our reputation and client relationships may be damaged as a result of our practices related to climate change, including our involvement, or our clients’ involvement, in certain industries or projects, in the absence of mitigation and/or transition measures, associated with causing or exacerbating climate change, as well as any decisions we make to continue to conduct or change our activities in response to considerations relating to climate change. As climate risk is interconnected with all key risk types, the Company continues to embed climate risk considerations into risk management strategies.

Furthermore, these weather events may result in a decline in value or destruction of properties securing loans and an increase in delinquencies, foreclosures and credit losses. The Company does maintain property insurance policies to cover certain costs associated with these events; however, it is possible that the expenses may exceed coverage, may not be covered at all or may ultimately increase costs associated with future insurance premiums.

Additionally, New York City and New Jersey remain central targets for potential acts of terrorism against the United States. Such events could affect the stability of the Company’s deposit base, impair the ability of borrowers to repay outstanding loans, impair the value of collateral securing loans, cause significant property damage, result in loss of revenue and/or cause the Company to incur additional expenses. The occurrence of any such event in the future could have material adverse effect on the business, which in turn, could have a materially adverse impact on the financial condition and results of operations of the Company.

Our use of artificial intelligence, including generative artificial intelligence, may expose us to operational, regulatory, legal, and reputational risks that could adversely affect our business, financial condition, and results of operations.

We use, and expect to continue to expand our use of, artificial intelligence and machine learning technologies, including generative artificial intelligence models, in our operations and through third-party vendors. These technologies are complex, rapidly evolving, and may not perform as intended. AI systems may produce inaccurate, biased, or unpredictable results, which could lead to flawed business decisions, customer harm, control failures, or violations of law or regulation, including consumer protection and fair lending requirements.

The regulatory and supervisory framework governing the use of artificial intelligence in the banking industry is developing and remains uncertain. Banking regulators have increased scrutiny of AI-related practices, including governance, model risk management, explainability, data usage, and third-party oversight. New laws, regulations, or supervisory expectations could limit our ability to deploy AI technologies, require significant changes to our systems or processes, increase compliance costs, or result in supervisory actions, fines, or penalties if our use of AI is deemed noncompliant or unsafe.

The use of AI, including generative AI, may also increase cybersecurity, data privacy, and information security risks. AI systems may require access to sensitive customer or proprietary information, and any failure to adequately safeguard such data, prevent misuse, or comply with applicable privacy and data protection laws could result in regulatory enforcement actions, litigation, financial losses, and reputational harm.

We also face risks from reliance on third-party vendors that develop or utilize AI technologies. These vendors may use proprietary or opaque models, limit our ability to validate or monitor AI-driven outcomes, or fail to maintain adequate controls. Disruptions, deficiencies, or misconduct by such vendors could adversely affect our operations, compliance posture, or customer relationships.

If we are unable to effectively manage the risks associated with artificial intelligence and emerging technologies, or if these technologies fail to operate as intended, our business, financial condition, and results of operations could be materially adversely affected.

The Company may be adversely affected by changes in U.S. federal tax laws and state and local tax laws.

The Company’s business may be adversely affected by changes in tax laws if there are any increases in its federal income tax rates. Further, the Company’s business may be adversely affected by changes in tax laws if there are any increases in its state and local tax rates in markets where it has locations.

Table of Contents

The Company’s financial results and condition may be adversely impacted by banking failures or future similar events.

Certain events impacting the banking industry, including the bank failures in March and April 2023, resulted in significant disruption and volatility in the capital markets, reduced valuation of bank securities, and decreased confidence in banks among certain depositors and counterparties. While the U.S. Department of Treasury, the Federal Reserve, and the FDIC took steps to ensure the depositors of the failed banks in early 2023 would have access to their insured and uninsured deposits, there is no assurance that these or similar actions will restore customer confidence in the baking system, and the Company may be further impacted by concerns regarding the soundness, real or perceived, of other financial institutions or other future bank failures or disruptions. Any loss in client deposits or changes in the Company’s perception could increase the cost of funding, limit access to capital markets or negatively impact the Company’s overall liquidity or capitalization. Further, the cost of resolving the bank failures also prompted the FDIC to issue a special assessment to recover costs to the DIF. The special assessment did not impact the Company; however, the FDIC maintains the ability to impose additional shortfall special assessments, which may adversely impact the Company, in the future.

Claims and litigation could result in significant expenses, losses and damage to the Company’s reputation.

From time to time, as a part of the Company’s normal course of business, customers, bankruptcy trustees, former customers, contractual counterparties, third parties and current and former employees may make claims and take legal action against the Company based on the actions or inactions of the Company. If such claims and legal actions are undertaken and are not resolved in a manner favorable to the Company, they may result in financial liability and/or adversely affect the market perception of the Company. Any financial liability could have a material impact on the Company’s financial condition and results of operations. Any reputational damages could have a material adverse effect on the Company’s business.

Failure to successfully implement the Company’s growth strategies could cause it to incur substantial costs, which may not be recouped and adversely affect its future profitability.

From time to time, the Company may implement new lines of business, open new branches or offer new products and services. There are substantial risks and uncertainties associated with these efforts. The Company may invest significant time and resources, which may not be fully recouped if profitability targets are not proven feasible. External factors such as compliance with regulations, competitive alternatives and shifting customer preferences may also impact successful implementation. Failure to successfully manage these risks may have a material adverse impact on the Company’s business, results of operations and financial condition.

Further, in order to continue growth, the Company may need to seek additional capital. The Company will be required to maintain its regulatory capital levels at levels higher than the minimum set by its regulators. If the Company were required to raise capital to implement growth strategies, the Company can offer no assurances that it will be able to raise capital in the future or that the terms of the capital will be beneficial to its existing shareholders. In the event that the Company is unable to raise capital in the future, the Company may not be able to continue its growth strategy.

A component of the Company’s growth strategies may include merger & acquisition opportunities. Attractive merger and acquisition opportunities may not be available to the Company in the future as other banking and financial service companies, many of which have greater resources, will compete with the Company in acquiring potential target companies. This competition could increase prices of potential acquisitions that may be attractive. Additionally mergers and acquisitions are subject to various regulatory approvals. If regulatory approvals are not obtained, the Company would not be able to consummate a merger or acquisition that may be in the Company’s best interests. Lastly, the Company has limited merger and acquisition experience, which may minimize the deals available or the ability to appropriately analyze and operationally execute a merger or acquisition. This may adversely impact the operating results.

Table of Contents

The Company may not be able to detect money laundering and other illegal or improper activities fully, or on a timely basis, which could expose the company to additional liability and could have a material adverse effect.

The Company is required to comply with anti-money laundering, anti-terrorism and other laws and regulations in the United States. These laws and regulations require the Company to adopt and enforce “know-your-customer” policies and procedures and to report suspicious and larger transactions to applicable regulatory authorities. These laws and regulations have become increasingly complex and detailed, require improved systems, sophisticated monitoring and compliance personnel and have become the subject of enhanced government supervision.

Although the Company has policies and procedures aimed at detecting and preventing the use of its banking network for money laundering and related activities, those policies and procedures may not eliminate instances in which the Company may be used by customers to engage in illegal or improper activities. To the extent that the Company fails to fully comply with the applicable laws and regulations, banking agencies may have the authority to impose fines, other penalties and sanctions on the Company.

The Company may not be able to detect fraudulent activities fully, or on a timely basis, which could expose the Company to financial losses, reputational harm and regulatory scrutiny.

The Company is required to maintain robust internal controls, monitoring systems, and reporting mechanisms designed to prevent, detect, and address fraud committed by customers, employees, vendors, or other third parties. Fraud related risks have become increasingly complex as digital channels expand, criminal schemes evolve, and expectations from regulators and industry stakeholders continue to rise.

Although the Company has implemented policies, procedures, and technological safeguards intended to identify and mitigate fraudulent behavior, these measures may not prevent all instances of fraud. Fraudulent activities may be sophisticated, coordinated, or intentionally concealed, and may involve identity theft, account takeover, unauthorized transactions, misappropriation of funds, or manipulation of internal processes. To the extent the Company fails to detect or prevent fraudulent activity, it may suffer financial losses, incur increased operational costs, face customer disputes, or experience reputational damage. In addition, regulators may impose fines, penalties, or other sanctions if the Company’s fraud prevention controls are deemed inadequate or if the Company fails to comply with applicable laws, regulations, or supervisory expectations.

The Company’s ability to maintain its reputation is critical to the success of the business and the failure to do so may adversely impact its performance.

The Company’s reputation is one of the most valuable components of its business. As such, the Company strives to conduct its business in a manner that maintains its reputation. If the Company’s reputation is negatively impacted by the actions of an employee, certain litigations, regulatory actions, or certain financial concerns, the business and therefore the operating results may be adversely impacted.

In addition, stakeholder expectations regarding environmental, social, and governance matters continue to evolve and are not uniform. We have established, and may continue to establish, various goals and initiatives on these matters. We cannot guarantee that we will achieve these goals and initiatives. Any failure, or perceived failure, by us to achieve these goals and initiatives could adversely affect our reputation and results of operations.

The Company’s controls and procedures may fail or be circumvented, which may result in a material adverse effect on its business, results of operations and financial condition.

The Company’s Management periodically reviews and updates its internal controls, policies and procedures. Any system of controls is in part based on certain assumptions and can only provide reasonable, not absolute, assurances that the objectives of the system are met. Any failure or circumvention of the controls and procedures or failure to comply with regulations related to controls and procedures could have a material adverse effect on the Company and its results of operations and financial condition.

Table of Contents

Anti-takeover provisions in corporate documents and in New Jersey corporate law may make it difficult and expensive to remove current management.

Anti-takeover provisions in corporate documents and in New Jersey law may render the removal of the existing Board of Directors and management more difficult. Consequently, it may be difficult and expensive for the shareholders to remove current management, even if current management is not performing adequately.

Item 1B. Unresolved Staff Comments: None

Item 1C. Cybersecurity Disclosures

Risk Management and Governance

Cybersecurity is a material part of Unity Bank’s business. As a technology forward financial institution offering products through multiple digital delivery channels, cybersecurity incidents could have a material effect on the Company, its results of operations and its reputation. To date, the Company has not experienced any cybersecurity incident which has had a material effect on the Company’s business strategy, results of operations or financial condition, although increased use of technology will expose us to greater risk of breaches in security and or service disruptions.

Cybersecurity risk is initially overseen by the management Information Technology Steering Committee (the “ITSC”). The members of this committee include the Company’s Chief Information Officer, Chief Compliance Officer (who is also the Information Security Officer), Chief Executive Officer, Chief Financial Officer and other critical executive management members. The ITSC also includes a non-voting member that is an independent, outsourced cybersecurity expert.

Over his 18-year career, the Company’s Chief Information Officer has served in multiple Information Technology and Cybersecurity roles, such as Senior Engineer, responsible for implementing hardened infrastructure for both physical and cloud applications; Solutions Architect, designing infrastructures for highly regulated industries including Financial Services, Local/State Government and Healthcare; Director of Service Delivery, overseeing engineering, solutions architecture and maintaining the System and Organization Controls (SOC) program prior to joining Unity Bank. During his tenure at Unity Bank, he is a member of various Risk and Cybersecurity Committees of the New Jersey Bankers Association, is a member of FS-ISAC, The Independent Community Bankers of America and our primary banking vendors advisory and risk management committees.

The Company’s Chief Compliance Officer was appointed as the Company’s Information Security Officer in 2016.

The Virtual Information Security Officer (vISO), an outsourced consultant, has an over 20-year career in Information Technology, Cybersecurity and both Internal/External Audit experience. He presently holds a position of Partner of Cherry Bekaert, formerly Herbein & Company, Inc., COA Advisor & Audit, where he’s held multiple positions within Information Technology and Cybersecurity.

The Company’s Information Technology Manager has an over 27-year career in Information Technology, the prior 14-years of which have been in Information Technology, Security and Cybersecurity, working primarily in regulated industries.

In order to ensure that cybersecurity risk management is integrated into the Company’s overall risk management plans, systems and processes, the ITSC and Chief Information Officer provide reports and updates to the Board of Directors, or a Committee thereof on a quarterly basis. To ensure employees are properly trained, annually all employees are required to take a Gramm-Leach-Bliley Act training.

Table of Contents

The Company’s cybersecurity risk mitigation program involves a combination of internal resources and the use of third parties. The Company’s internal IT team performs monthly vulnerability scanning and performs an annual risk assessment based on the National Institute of Standards and Technology Cybersecurity Framework. The results are reported to the ITSC, which is then reported to the Board of Directors. The Company’s IT and compliance staff also review potential cybersecurity threats associated with the Company’s third party vendors, including performing a review of and obtaining a System of Organization Controls report from all vendors rated as “high risk” by the Company’s internal vendor management program. The Company also has an internal Incident Response Plan and Team, which is charged with overseeing the Company’s response to any cybersecurity incident. The team performs a table top exercise at least annually to prepare to respond in the event of any actual cybersecurity incident.

In addition to these internal resources, the Company uses a third party vendor to complete annual penetration and vulnerability testing, with the results reported to the ITSC. Finally, the Company’s cybersecurity compliance program is audited by the Bank’s outsourced internal auditor.

The Company also maintains cyber liability insurance which may provide coverage for expenses and certain losses incurred in connection with a cybersecurity incident.

Cybersecurity Incident Response Planning

The Company has established a comprehensive cybersecurity incident response plan to ensure the swift and effective handling of any potential security breaches. This plan includes detailed procedures for identifying, assessing, and mitigating cybersecurity threats, as well as protocols for communication and coordination with relevant stakeholders. Regular training and simulations are conducted to keep the Company’s response team prepared for various scenarios, ensuring minimal disruption to its operations and safeguarding the Company’s customers’ data.

Table of Contents

Item 2. Properties:

The Company presently conducts its business through its main office located at 64 Old Highway 22, Clinton, New Jersey and its twenty-two branch offices. The Company is currently leasing additional back office space in Clinton, New Jersey, in a building adjacent to its main office. The Company’s facilities are adequate to meet its needs.

The following table sets forth certain information regarding the Company’s properties from which it conducts business as of December 31, 2025.


Location		Leased or Owned		Date Leased or Acquired		Lease Expiration
North Plainfield, NJ		Owned		1991		—
Linden, NJ		Owned		1997		—
Whitehouse, NJ		Owned		1998		—
Union, NJ		Leased		2021		2036
Scotch Plains, NJ		Owned		2004		—
Flemington, NJ		Owned		2005		—
Forks Township, PA		Leased		2006		2036
Middlesex, NJ		Owned		2007		—
Somerset, NJ		Leased		2012		2027
Washington, NJ		Owned		2012		—
Highland Park, NJ		Owned		2013		—
South Plainfield, NJ		Owned		2013		—
Edison, NJ		Owned		2013		—
Clinton, NJ*		Owned		2016		—
Somerville, NJ		Owned		2016		—
Emerson, NJ		Owned		2016		—
Phillipsburg, NJ		Leased		2017		2027
Clinton, NJ**		Leased		2018		2036
Bethlehem, PA		Leased		2018		2028
Parsippany, NJ		Owned		2023		—
Lakewood, NJ		Leased		2022		2037
Fort Lee, NJ		Leased		2022		2037
Madison, NJ		Leased		2025		2035
*Headquarters Space
**Back Office Space

Item 3. Legal Proceedings:

From time to time, the Company is subject to legal proceedings and claims in the ordinary course of business. The Company currently is not aware of any such legal proceedings or claims that it believes will have, individually or in the aggregate, a material adverse effect on the business, financial condition or operating results of the Company.

Item 4. Mine Safety Disclosures: N/A

PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities:

(a)	Market Information

The Company’s Common Stock is quoted on the NASDAQ Global Market under the symbol “UNTY.” The Company declared cash dividends of $0.14 per share for the first and second quarters of 2025, and subsequently increased the

Table of Contents

dividend to $0.15 per share for the third and fourth quarters of the year. The declaration and payment of future dividends to holders of the Company’s common stock is at the discretion of our Board and depends upon many factors, including our financial condition, earnings, capital requirements, legal requirements, regulatory constraints and other factors that our Board deems relevant. As of December 31, 2025, approximately 281 holders of record held shares of our common stock.

(b)	Repurchase Plan

On August 1, 2024 the Board authorized a repurchase plan permitting the repurchase of up to 500 thousand shares, or approximately 5.0% of the Company’s outstanding common stock, in addition to the previously approved repurchase plan authorizing the repurchase of up to 500 thousand shares of common stock. A total of 116 thousand shares were repurchased at an average price of $43.21 during 2025, all of which were repurchased under the prior repurchase plan, leaving 568 thousand shares available for repurchase as of December 31, 2025. A total of 229 thousand shares were repurchased at an average price of $27.05 during 2024, leaving 685 thousand shares available for repurchase as of December 31, 2024. The timing and amount of additional purchases, if any, will depend upon several factors including the Company’s capital needs, the Company’s liquidity position, the performance of its loan portfolio, the need for additional provisions for credit losses and the market price of the Company’s stock.


					Maximum
				Total Number of	Number of
	Total			Shares Purchased	Shares that May
	Number of		Weighted	as Part of Publicly	Yet be Purchased
	Shares	Average Price		Announced Plans	Under the Plans
Period	Purchased	Paid per Share		or Programs	or Programs
January 1, 2025 through January 31, 2025	-	$	-	-	684,645
February 1, 2025 through February 29, 2025	-		-	-	684,645
March 1, 2025 through March 31, 2025	-		-	-	684,645
April 1, 2025 through April 30, 2025	50,000		38.78	50,000	634,645
May 1, 2025 through May 31, 2025	-		-	-	634,645
June 1, 2025 through June 30, 2025	-		-	-	634,645
July 1, 2025 through July 31, 2025	-		-	-	634,645
August 1, 2025 through August 31, 2025	-		-	-	634,645
September 1, 2025 through September 30, 2025	-		-	-	634,645
October 1, 2025 through October 31, 2025	5,402		45.32	5,402	629,243
November 1, 2025 through November 30, 2025	60,894		46.66	60,894	568,349
December 1, 2025 through December 31, 2025	-		-	-	568,349

The above table excludes stock repurchase excise taxes accrued or paid.

Item 6. Reserved: N/A

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations:

The purpose of this analysis is to provide the reader with information relevant to understanding and assessing the Company’s results of operations and financial condition for each of the past two years. In order to fully appreciate this analysis, the reader is encouraged to review the consolidated financial statements and accompanying notes thereto appearing under Item 8 of this report and statistical data presented in this document.

Overview

Unity Bancorp, Inc. (the “Parent Company”) is a financial holding company incorporated in New Jersey and registered under the Bank Holding Company Act of 1956, as amended. Its wholly-owned subsidiary, Unity Bank (the “Bank” or,

Table of Contents

when consolidated with the Parent Company, the “Company”) is chartered by the New Jersey Department of Banking and Insurance and commenced operations on September 13, 1991. The Bank provides a full range of commercial and retail banking services through online banking platforms and its twenty-two branch offices located in Bergen, Hunterdon, Middlesex, Morris, Ocean, Somerset, Union and Warren counties in New Jersey and Northampton County in Pennsylvania. These services include the acceptance of demand, savings and time deposits and the extension of consumer, real estate, SBA and other commercial credits. The Bank has multiple subsidiaries used to hold part of its investment, other real estate owned and loan portfolios.

The below table reflects a 5-year trend of the Company’s net income and return on average equity, (“ROE”):

Results of Operations

Net income totaled $58.0 million, or $5.67 per diluted share for the year ended December 31, 2025, compared to $41.5 million, or $4.06 per diluted share for the year ended December 31, 2024.

Highlights for the year include:

●

Net income increased 39.8 percent to $58.0 million from $41.5 million in the prior year.

●

Net income per diluted share increased 39.7 percent to $5.67 per share from $4.06 per share in the prior year.

●

Net interest income increased $18.4 million, or 18.7 percent, to $117.0 million from $98.6 million in the prior year, primarily due to increased volume and rate of interest-earning assets and decrease in rate of interest-bearing liabilities, partially offset by increases in the volume of interest-bearing liabilities.

●

Net interest margin for the year ending December 31, 2025 increased 36 basis points to 4.52 percent compared to 4.16 percent in the prior year.

●

Noninterest income was $14.8 million, a 74.5 percent increase compared to $8.5 million in the prior year, primarily due to increased net securities gains, service and loan fee and branch fee income. The increased net

Table of Contents

gains on securities was primarily driven by $1.7 million in unrealized gains and $3.5 million in realized gains on the Patriot National Bancorp, Inc. position.

●

Noninterest expense totaled $52.4 million, an increase of $3.7 million when compared to $48.7 million in the prior year. The increase was primarily due to increased compensation and benefits, processing and communications, director fees and occupancy expenses, partially offset by a decrease in loan related expenses.

●

Net income before provision for income taxes increased 38.8 percent to $75.5 million from $54.4 million in the prior year.

●

The effective tax rate decreased to 23.3 percent compared to 23.8 percent in the prior year.

●

Total securities decreased $21.0 million, or 14.5 percent from the prior year. The decrease was driven by a decrease in debt securities available for sale and held to maturity, primarily resulting from principal paydowns, calls and maturities, partially offset by purchases and mark to market gains of debt securities available for sale.

●

Total gross loans increased $284.1 million, or 12.6 percent from the prior year. The increase was primarily driven by a 18.5 percent increase in commercial loans, 13.1 percent increase in commercial construction and 7.3 percent increase in residential mortgage loans, partially offset by a 19.4 percent decrease in residential construction loans.

●

Total deposits increased $223.7 million, or 10.7 percent from the prior year. The increase was primarily driven by increases in brokered deposits, time deposits, interest-bearing demand deposits, savings deposits and noninterest-bearing demand deposits.

●

Total borrowed funds increased $35.3 million, or 16.0 percent from the prior year.

The Company’s performance ratios for the past two years are listed in the following table:


		For the years ended December 31,
		2025			2024
Net income per common share - Basic (1)		$	5.78		$	4.13
Net income per common share - Diluted (2)		$	5.67		$	4.06
Return on average assets			2.17	%		1.68	%
Return on average equity (3)			18.07	%		14.99	%
Dividend payout ratio (4)			10.23	%		12.81	%
Average equity to average assets (5)			11.99	%		11.24	%

(1)	Defined as net income divided by weighted average shares outstanding.

(2)	Defined as net income divided by the sum of weighted average shares and the potential dilutive impact of the exercise of outstanding options.

(3)	Defined as net income divided by average shareholders’ equity.

(4)	Defined as dividends declared per share divided by diluted net income per share.

(5)	Defined as average equity divided by average total assets.

Table of Contents

The below table provides net income for 2024 and the component reconciliation to net income for 2025:

The table below an annualized non-GAAP reconciliation of adjustments called out in the chart above:


	For the 12 months ended
(In thousands, except percentages and per share amounts)	December 31, 2025		December 31, 2024
Adjusted net income:
Net income (GAAP)	$	57,951	$	41,450
Adjustments:
Less: Release of credit losses, securities		(2,823)		-
Less: Net securities gains, pertaining to one-time sales		(3,509)		-
Less: Net securities gains, unrealized		(1,693)		-
Add: Adjusted release of income taxes		1,893		-
Adjusted net income (non-GAAP)	$	51,819	$	41,450

Net Interest Income

The primary source of the Company’s operating income is net interest income, which is the difference between interest and dividends earned on interest-earning assets and net deferred fees earned on loans, versus interest paid on interest-bearing liabilities. Interest-earning assets include loans to consumers and businesses, investment securities, Federal Home Loan Bank (“FHLB”) stock, and interest-earning deposits. Interest-bearing liabilities include interest-bearing demand, savings, brokered and time deposits, borrowed funds and subordinated debentures.

Table of Contents

2025 compared to 2024

During 2025, tax-equivalent net interest income amounted to $117.0 million, an increase of $18.4 million, or 18.7 percent, when compared to the same period in 2024. The net interest margin increased 36 basis points to 4.52 percent for the year ended December 31, 2025, compared to 4.16 percent for the same period in 2024. The net interest spread was 3.69 percent for 2025, a 40 basis point increase compared to 3.29 for the same period in 2024.

During 2025, tax-equivalent interest income was $173.6 million, an increase of $17.9 million, or 11.5 percent, when compared to the same period in the prior year. This increase was mainly driven by the increase in the average balance of loans and in the yield on loans.

●

Of the $17.9 million increase in interest income on a tax-equivalent basis, $12.9 million was due to the increased average volume of interest-earning assets and $5.0 million was due to increased yields on average interest-earning assets.

●

The average volume of interest-earning assets increased $216.5 million to $2.6 billion for 2025 compared to $2.4 billion for 2024. This was primarily due to a $214.0 million increase in average loans, with growth in commercial and residential mortgage loans. The increase was complemented by a $7.4 million increase in average interest-bearing deposits, partially offset by a $3.8 million and $1.1 million decrease in average investment securities and FHLB stock, respectively.

●

The yield on total interest-earning assets increased 14 basis points to 6.71 percent for the year ended December 31, 2025 when compared to 2024. The yield on the loan portfolio increased 20 basis points to 6.76 percent.

Total interest expense was $56.6 million in 2025, a decrease of $0.5 million or 0.9 percent compared to 2024. This decrease was primarily driven by the decrease in the cost of deposits and the decreased average balance of borrowed funds and subordinated debentures, which was partially offset by an increase in the volume of time deposits and interest-bearing demand deposits.

●

Of the $0.5 million decrease in interest expense, $4.9 million was due to decreased rates on average interest-bearing deposits, while $1.0 million and $0.3 million was due to the decreased volume and rate of borrowed funds and subordinated debentures, respectively, which was partially offset by an increase of $5.7 million related to volume of average interest-bearing deposits.

●

The average cost of interest-bearing liabilities decreased 26 basis points to 3.02 percent in 2025 when compared to 2024. The cost of interest-bearing deposits decreased 25 basis points in 2025. The cost of borrowed funds and subordinated debentures decreased 24 basis points in 2025.

●

Interest-bearing liabilities averaged $1.9 billion in 2025, an increase of $132.9 million, compared to 2024. The increase in interest-bearing liabilities was primarily due to increases in time deposits and interest-bearing demand deposits, partially offset by increases in borrowed funds and subordinated debentures and brokered deposits.

Table of Contents

The following table provides a 5 year look back at yield on interest-earning assets, cost of interest-bearing liabilities and net interest margin.

Table of Contents

Consolidated Average Balance Sheets

The following table reflects the components of net interest income, setting forth for the periods presented herein: (1) average assets, liabilities and shareholders’ equity, (2) interest income earned on interest-earning assets and interest expense paid on interest-bearing liabilities, (3) average yields earned on interest-earning assets and average rates paid on interest-bearing liabilities, (4) net interest spread and (5) net interest income/margin on average interest-earning assets. Rates/yields are computed on a fully tax-equivalent basis, assuming a federal income tax rate of 21 percent.

(Dollar amounts in thousands, interest amounts and interest rates/yields on a fully tax-equivalent basis)


For the years ended December 31,	2025						2024
	Average						Average
	balance		Interest		Rate/Yield		balance		Interest		Rate/Yield
ASSETS
Interest-earning assets:
Interest-bearing deposits	$	45,865	$	1,964	4.28	%	$	38,491	$	2,033	5.28	%
Federal Home Loan Bank ("FHLB") stock		7,382		565	7.66			8,440		789	9.34
Securities:
Taxable		136,129		6,818	5.01			139,800		7,312	5.23
Tax-exempt		1,499		83	5.55			1,599		72	4.49
Total securities (A)		137,628		6,901	5.01			141,399		7,384	5.22
Loans:
SBA loans		47,478		3,790	7.87			56,307		4,887	8.56
Commercial loans		1,405,106		95,144	6.68			1,186,277		75,699	6.28
Commercial construction loans		124,234		10,340	8.21			134,806		12,074	8.81
Residential mortgage loans		663,372		41,925	6.32			625,365		37,770	6.04
Consumer loans		81,177		5,830	7.08			71,010		5,607	7.77
Residential construction loans		74,933		7,181	9.45			108,558		9,497	8.61
Total loans (B)		2,396,300		164,210	6.76			2,182,323		145,534	6.56
Total interest-earning assets	$	2,587,175	$	173,640	6.71	%	$	2,370,653	$	155,740	6.57	%

Noninterest-earning assets:
Cash and due from banks		22,798						23,396
Allowance for credit losses		(28,999)						(26,492)
Other assets		94,422						92,687
Total noninterest-earning assets		88,221						89,591
Total assets	$	2,675,396					$	2,460,244

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits	$	362,811	$	7,528	2.07	%	$	326,943	$	7,176	2.19	%
Savings deposits		509,892		11,652	2.29			512,405		13,006	2.54
Brokered deposits		220,910		7,608	3.44			227,070		8,412	3.70
Time deposits		668,405		25,571	3.83			535,297		22,918	4.28
Total interest-bearing deposits		1,762,018		52,359	2.97			1,601,715		51,512	3.22
Borrowed funds and subordinated debentures		114,047		4,236	3.66			141,489		5,615	3.90
Total interest-bearing liabilities	$	1,876,065	$	56,595	3.02	%	$	1,743,204	$	57,127	3.28	%

Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		446,081						411,148
Other liabilities		32,524						29,421
Total noninterest-bearing liabilities		478,605						440,569
Total shareholders' equity		320,726						276,471
Total liabilities and shareholders' equity	$	2,675,396					$	2,460,244

Net interest spread			$	117,045	3.69	%			$	98,613	3.29	%
Tax-equivalent basis adjustment				(12)						(2)
Net interest income			$	117,033					$	98,611
Net interest margin					4.52	%					4.16	%

Table of Contents

(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 in 2025 and 2024.

(B)	The loan averages are stated net of unearned income, and the averages include loans on which the accrual of interest has been discontinued.

(C)

The rate volume table below presents an analysis of the impact on interest income and expense resulting from changes in average volume and rates over the periods presented. Changes that are not solely due to volume or rate variances have been allocated proportionally to both, based on their relative absolute values. Amounts have been computed on a tax-equivalent basis, assuming a federal income tax rate of 21 percent.


		For the years ended December 31,
		2025 versus 2024
		Increase (decrease) due to change in:
(In thousands on a tax-equivalent basis)		Volume			Rate			Net
Interest income:
Interest-bearing deposits		$	352		$	(421)		$	(69)
FHLB stock			(92)			(132)			(224)
Securities			(194)			(289)			(483)
Loans			12,813			5,863			18,676
Total interest income		$	12,879		$	5,021		$	17,900
Interest expense:
Demand deposits		$	758		$	(406)		$	352
Savings deposits			(64)			(1,290)			(1,354)
Brokered deposits			(224)			(580)			(804)
Time deposits			5,251			(2,598)			2,653
Total interest-bearing deposits			5,721			(4,874)			847
Borrowed funds and subordinated debentures			(1,046)			(333)			(1,379)
Total interest expense			4,675			(5,207)			(532)
Net interest income - fully tax-equivalent		$	8,204		$	10,228		$	18,432
Decrease in tax-equivalent adjustment									(10)
Net interest income								$	18,422

Provision for Credit Losses

The provision for credit losses for loans totaled $6.7 million for 2025, compared to $2.4 million in 2024. The provision for credit losses for loans increased $4.3 million for the year ended 2025 primarily due to loan growth, with additional increases in qualitative adjustments due to increased nonaccrual assets.

The provision for credit losses for off-balance sheet exposures totaled to $66 thousand for the year ended December 31, 2025, compared to $1 thousand at December 31, 2024.

For the year ending December 31, 2025, there was a release in credit losses for debt securities of $2.8 million compared to a provision for credit losses for debt securities of $1.5 million for the prior year. The $2.8 million of release relates to the Patriot National Bancorp, Inc. position that was converted to restricted stock in 2025. There were no nonaccrual securities at December 31, 2025, compared to $2.0 million at December 31, 2024.

Each period’s credit loss provision is the result of Management’s analysis of the loan portfolio and reflects changes in the size and composition of the portfolio, the level of net charge-offs, delinquencies, current and expected economic conditions and other internal and external factors impacting the risk within the loan portfolio. Additional information may be found under the captions “Financial Condition - Asset Quality” and “Financial Condition - Allowance for Credit Losses and Reserve for Unfunded Loan Commitments.”

Table of Contents

Noninterest Income

The following table shows the components of noninterest income for the past two years:


		For the years ended December 31,
(In thousands)		2025			2024
Branch fee income		$	1,836		$	1,391
Service and loan fee income			2,712			2,165
Gain on sale of SBA loans held for sale, net			705			660
Gain on sale of mortgage loans, net			1,527			1,488
BOLI income			774			544
Net securities gains			5,596			586
Other income			1,629			1,635
Total noninterest income		$	14,779		$	8,469

Noninterest income was $14.8 million for 2025, a $6.3 million increase compared to $8.5 million for 2024. This increase was primarily due to increased net gains on securities, service and loan fee income, branch fee income and BOLI income. The increased net gains on securities was primarily driven by $1.7 million in unrealized gains and $3.5 million in realized gains on the Patriot National Bancorp, Inc. position.

Noninterest Expense

The following table shows the components of noninterest expense for the past two years:


		For the years ended December 31,
(In thousands)		2025			2024
Compensation and benefits		$	32,186		$	29,749
Processing and communications			4,193			3,473
Occupancy			3,407			3,184
Furniture and equipment			3,224			3,140
Professional services			1,758			1,683
Advertising			1,682			1,611
Loan related expenses			888			1,138
Deposit insurance			1,174			1,100
Director fees			1,293			956
Other expenses			2,554			2,707
Total noninterest expense		$	52,359		$	48,741

Noninterest expense totaled $52.4 million for the year ended December 31, 2025, an increase of $3.7 million when compared to $48.7 million in 2024. The majority of this increase is attributable to increased compensation and benefits, processing and communications, director fee and occupancy expenses, partially offset by decreased loan related expense.

Income Tax Expense

For 2025, the Company reported income tax expense of $17.6 million for an effective tax rate of 23.3%, compared to an income tax expense of $12.9 million and an effective tax rate of 23.8% in 2024. During the fourth quarter of 2025, Unity purchased $8.0 million of federal tax credits for $7.5 million, resulting in $0.5 million of tax savings. The Company intends to evaluate other tax credit opportunities on an ongoing basis, subject to market availability and regulatory considerations.

For additional information on income taxes, see Note 11 to the Consolidated Financial Statements.

Table of Contents

Financial Condition

Total assets increased $312.6 million, or 11.8 percent, to $3.0 billion at December 31, 2025, when compared to year end 2024. This increase was primarily due to an increase of $284.1 million in gross loans, mostly due to increases of $236.7 million in commercial loan growth, $46.3 million in residential mortgages, $17.0 million in commercial construction loans and $8.5 million in consumer loans partially offset by decreases of $17.6 in residential construction, $4.1 million in SBA loans held for investment and $2.7 million in loans held for sale. Total assets also included an increase of $36.1 million in total cash and cash equivalents, partially offset by a decrease of $21.0 million in securities.

Total deposits increased $223.7 million, or 10.7 percent, to $2.3 billion at December 31, 2025. This increase was primarily due to increases of $56.3 million in brokered deposits, $51.4 million in time deposits, $47.3 million in interest-bearing demand deposits, $43.9 million in savings deposits and $24.8 million in noninterest-bearing demand deposits. Borrowed funds increased $35.3 million to $255.8 million at December 31, 2025.

Total shareholders’ equity increased $50.0 million when compared to December 31, 2024, due to earnings and an increase in common stock, offset by dividends paid and share repurchases.

These fluctuations are discussed in further detail in the sections that follow.

Securities

The Company’s securities portfolio consists of available for sale (“AFS”) debt securities, held to maturity (“HTM”) debt securities and equity investments. Management determines the appropriate security classification of AFS and HTM at the time of purchase. The investment securities portfolio is maintained for asset-liability management purposes, as well as for liquidity and earnings purposes.

The following table provides the major components of AFS debt securities, HTM debt securities and equity investments at their carrying value as of December 31, 2025 and December 31, 2024:


(In thousands)		December 31, 2025		December 31, 2024
Available for sale, at fair value:
U.S. Government sponsored entities	$	4,969	$	14,759
State and political subdivisions		159		333
Residential mortgage-backed securities		11,752		12,286
Asset backed securities		22,000		39,393
Corporate and other securities		31,990		27,113
Total securities available for sale	$	70,870	$	93,884
Held to maturity, at amortized cost:
U.S. Government sponsored entities	$	28,000	$	28,000
State and political subdivisions		1,299		1,234
Residential mortgage-backed securities		7,277		12,060
Total securities held to maturity	$	36,576	$	41,294
Equity Securities, at fair value:
Total Equity Securities	$	16,569	$	9,850

AFS debt securities are investments carried at fair value that may be sold in response to changing market and interest rate conditions, liquidity management purposes, or for other business purposes. Activity in this portfolio is undertaken primarily to manage liquidity and interest rate risk, to take advantage of market conditions that create economically attractive returns and as an additional source of earnings. AFS debt securities consist primarily of obligations of U.S. Government sponsored entities, state and political subdivisions, residential mortgage-backed securities, asset backed securities and corporate and other securities.

Table of Contents

AFS debt securities totaled $70.9 million at December 31, 2025, a decrease of $23.0 million or 24.5 percent, compared to $93.9 million at December 31, 2024. This net decrease was the result of:

●

$37.2 million in principal payments, maturities and called bonds,

●

$2.0 million transfer of senior debt security modification to equity (net of valuation allowance),

●

$1.0 million in proceeds from sales,

●

$0.2 million in unrealized losses recognized through earnings,

●

Partially offset by purchases of $15.5 million; and

●

$1.9 million of appreciation in the market value of the portfolio. At December 31, 2025, the portfolio had a net unrealized loss of $1.6 million compared to a net unrealized loss of $3.5 million at December 31, 2024. These net unrealized losses are reflected net of tax in shareholders’ equity as accumulated other comprehensive loss.

For the year ended December 31, 2025, there was a release in credit losses on AFS debt securities of $2.8 million compared to a provision of $1.5 million for year ended December 31, 2024. The change in provision was entirely attributable to Patriot National Bancorp for which a partial valuation allowance was recognized in the second quarter of 2024 and the fourth quarter of 2023. During the year ended December 31, 2025, Unity released all valuation allowances related to the debt position and converted the position to equity.

The weighted average life of AFS debt securities, adjusted for prepayments, amounted to 5.1 years and 4.9 years at December 31, 2025 and 2024, respectively. The effective duration of AFS debt securities amounted to 1.9 and 1.4 years at December 31, 2025 and 2024, respectively.

HTM debt securities, which are carried at amortized cost, are investments for which there is the positive intent and ability to hold to maturity. The portfolio is comprised of obligations of U.S. Government sponsored entities, state and political subdivisions and residential mortgage-backed securities.

HTM debt securities totaled $36.6 million at December 31, 2025, a decrease of $4.7 million, or 11.4 percent, compared to $41.3 million at December 31, 2024. The decrease was due to:

●

$4.8 million in principal paydowns; and

●

Partially offset by $0.1 million in net accretion

The weighted average life of HTM debt securities, adjusted for prepayments, amounted to 14.8 years and 14.3 years at December 31, 2025 and 2024, respectively. As of December 31, 2025, the fair value of HTM debt securities was $30.4 million, compared to $33.8 million at December 31, 2024. The effective duration of HTM debt securities amounted to 10.7 and 9.0 years at December 31, 2025 and 2024, respectively.

Equity securities are investments carried at fair value that may be sold in response to changing market and interest rate conditions or for other business purposes. Activity in this portfolio is undertaken primarily to manage liquidity and interest rate risk, to take advantage of market conditions that create economically attractive returns and as an additional source of earnings. Additionally, equity securities consist of Community Reinvestment Act ("CRA") investments and the equity holdings of financial institutions.

Equity securities totaled $16.6 million at December 31, 2025, an increase of $6.7 million, or 68.2 percent, compared to $9.9 million at December 31, 2024. This net increase was the result of:

●

$3.5 million of realized gains,

●

$2.1 million of unrealized gains,

●

Conversion of senior debt to common equity $5.0 million,

●

Purchases of $2.7 million; and

●

Partially offset by $6.6 million in sales

The following table provides the remaining contractual maturities and average yields, calculated on a yield-to-maturity basis, within the investment portfolios. The carrying value of securities at December 31, 2025 is distributed by contractual

Table of Contents

maturity. Residential mortgage-backed securities and other securities, which may have principal prepayment provisions, are distributed based on contractual maturity. Expected maturities will differ materially from contractual maturities as a result of early prepayments and calls.


			Within one year				After one through five years				After five through ten years				After ten years				Total carrying value
			Amount	Yield			Amount	Yield			Amount	Yield			Amount	Yield			Amount	Yield
(In thousands, except percentages)
Available for sale, at fair value:
U.S. Government sponsored entities		$	—	-	%	$	4,969	3.15	%	$	—	-	%	$	—	-	%	$	4,969	3.15	%
State and political subdivisions			—	-			—	-			—	-			159	2.76			159	2.76
Residential mortgage-backed securities			21	2.41			133	2.69			497	3.34			11,101	3.41			11,752	3.40
Asset backed securities			—	-			—	-			11,999	5.90			10,001	5.55			22,000	5.74
Corporate and other securities			1,951	6.25			10,977	7.26			19,062	7.10			—	-			31,990	7.10
Total debt securities available for sale		$	1,972	6.21	%	$	16,079	5.95	%	$	31,558	6.58	%	$	21,261	4.41	%	$	70,870	5.78	%
Held to maturity, at cost:
U.S. Government sponsored entities		$	—	-	%	$	3,000	4.00	%	$	—	-	%	$	25,000	3.48	%	$	28,000	3.54	%
State and political subdivisions			—	-			—	-			—	-			1,299	5.19			1,299	5.19
Residential mortgage-backed securities			—	-			—	-			—	-			7,277	3.03			7,277	3.03
Total debt securities held for maturity		$	—	-	%	$	3,000	4.00	%	$	—	-	%	$	33,576	3.45	%	$	36,576	3.50	%

Securities with a carrying value of $69.2 million and $11.5 million at December 31, 2025 and December 31, 2024, respectively, were pledged to secure other borrowings and for other purposes required or permitted by law. There were no securities encumbered at December 31, 2025 and December 31, 2024.

Approximately 57 and 63 percent of the total investment portfolio had a fixed rate of interest at December 31, 2025 and December 31, 2024, respectively.

For additional information on securities, see Note 2 to the Consolidated Financial Statements.

Loans

The loan portfolio, which represents the Company’s largest asset group, is a significant source of both interest and fee income. The portfolio consists of SBA, commercial, commercial construction, residential mortgage, consumer and residential construction loans. Each of these segments is subject to differing levels of credit and interest rate risk.

Table of Contents

Total loans were $2.5 billion at December 31, 2025, an increase of $284.1 million or 12.6 percent when compared to year end 2024. Commercial, residential mortgage, commercial construction and consumer loans increased $236.6 million, $46.3 million, $17.0 million and $8.5 million, respectively, partially offset by decreases in residential construction, SBA loans held for investment and loans held for sale of $17.6 million, $4.0 million and $2.7 million, respectively. The Company’s loan portfolio had an average outstanding principal balance of $0.7 million per loan as of December 31, 2025.

The following table sets forth the classification of loans by loan type, including unearned fees and deferred costs and excluding the allowance for credit losses as of December 31, 2025 and December 31, 2024:


In thousands, except percentages	December 31, 2025		%	December 31, 2024		%
Loans held for sale	$	9,490	0.4%	$	12,163	0.5%
SBA loans		34,259	1.3%		38,309	1.7%
Commercial loans
SBA 504		43,802	1.7%		48,479	2.1%
Commercial & industrial		183,163	7.2%		147,186	6.5%
Commercial mortgage - owner occupied		660,427	26.0%		577,541	25.6%
Commercial mortgage - nonowner occupied		531,954	20.9%		428,600	19.0%
Other		98,686	3.9%		79,630	3.5%
Total commercial loans		1,518,032	59.7%		1,281,436	56.7%
Commercial construction loans		147,215	5.8%		130,193	5.8%
Residential mortgage loans
Primary residence		472,482	18.6%		427,738	18.9%
Secondary residence		71,656	2.8%		65,063	2.9%
Investor property		133,083	5.2%		138,126	6.1%
Total residential mortgage loans		677,221	26.6%		630,927	27.9%
Consumer loans
Home equity		82,488	3.2%		73,223	3.2%
Consumer other		2,731	0.1%		3,488	0.2%
Total consumer loans		85,219	3.3%		76,711	3.4%
Residential construction loans		73,277	2.9%		90,918	4.0%
Total gross loans	$	2,544,713	100.0%	$	2,260,657	100.0%

Below is a table of the geographic loan allocation of the Bank’s Commercial loan portfolio at December 31, 2025:


	New Jersey		New York		Pennsylvania		Other
Commercial loans
SBA 504	73.5		1.5		24.8		0.2
Commercial & industrial	89.6		2.0		4.8		3.6
Commercial mortgage - owner occupied	87.1		6.0		4.1		2.8
Commercial mortgage - nonowner occupied	83.8		7.2		4.6		4.4
Other	73.0		26.7		0.3		—
Commercial construction loans	90.3	%	3.3	%	6.4	%	—	%
Total	85.4	%	6.8	%	4.9	%	2.9	%

Table of Contents

The following table presents the estimated weighted average loan-to-value ratio for the commercial mortgage portfolio as of December 31, 2025:


		2025

(In thousands, except percentages)		Amount			Loan-to-Value*
Commercial loans
Commercial mortgage - owner occupied		$	660,427		53.8	%
Commercial mortgage - nonowner occupied			531,954		56.9
Total commercial mortgage loans		$	1,192,381		55.2	%

* The above includes last known appraised value on real estate collateral only.

The table below shows the breakdown of industry of the commercial mortgage – owner occupied portfolio as of December 31, 2025:


(In thousands)	Commercial mortgage - owner occupied
Industry type:
Mixed-use	$	94,574
Hotel/Motel		93,766
Food/Beverage services		63,217
Educational facilities		53,437
Retail		49,296
Warehouse		42,606
Office		39,987
Religious facilities		38,757
Automotive		37,938
Healthcare facilities		36,206
Gas Station		19,130
Other		91,513
Total as of December 31, 2025	$	660,427

The Other category above is predominantly comprised of land, airports and multi-family loans.

The table below shows the breakdown of industry of the commercial mortgage – nonowner occupied portfolio as of December 31, 2025:


(In thousands)	Commercial mortgage - nonowner occupied
Industry type:
Mixed-use	$	120,018
Retail		119,416
Office		91,923
Warehouse		67,038
Healthcare facilities		15,937
Educational facilities		15,690
Other		101,932
Total as of December 31, 2025	$	531,954

Table of Contents

The Other category above is predominantly comprised of multi-family, land, hotels and automotive loans.

SBA 7(a) loans, on which the SBA historically has provided guarantees of up to 90 percent of the principal balance, are considered a higher risk loan product for the Company than its other loan products. These loans are made to small businesses for the purposes of providing working capital and for financing the purchase of equipment, inventory or commercial real estate. Generally, an SBA 7(a) loan has a lower quality credit profile that would not allow the borrower to qualify for a traditional commercial loan, which is why the SBA provides the guarantee. These loans may have a higher loan to value (“LTV”) ratio, lower debt service coverage (“DSC”) ratio and/or weak personal financial guarantees. In addition, many SBA 7(a) loans are for startup businesses where there is no historical financial information. Finally, many SBA borrowers do not have an ongoing and continuous banking relationship with the Bank and work with the Bank on a single transaction. The guaranteed portion of the Company’s SBA loans may be sold in the secondary market.

SBA 7(a) loans held for sale, carried at the lower of cost or market, amounted to $8.0 million at December 31, 2025, a decrease of $4.2 million from $12.2 million at December 31, 2024. SBA 7(a) loans held for investment amounted to $34.3 million at December 31, 2025, a decrease of $4.0 million from $38.3 million at December 31, 2024. The yield on SBA 7(a) loans, which is generally floating and adjusts quarterly to the Prime Rate, was 7.87 percent for the year ended December 31, 2025, compared to 8.56 percent in the prior year.

The guarantee rates on SBA 7(a) loans range from 75 percent to 90 percent, with the majority of the portfolio having a guarantee rate of 75 percent at origination. The guarantee rates are determined by the SBA and can vary from year to year depending on government funding and the goals of the SBA program. Approximately $49.2 million and $72.6 million in SBA loans were sold but serviced by the Company at December 31, 2025 and December 31, 2024, respectively, and are not included on the Company’s Balance Sheet. There is no direct relationship or correlation between the guarantee percentages and the level of charge-offs and recoveries on the Company’s SBA 7(a) loans. SBA loans are underwritten to the same credit standards irrespective of the guarantee percentage.

Commercial loans are generally made in the Company’s marketplace for the purpose of providing working capital, financing the purchase of equipment, inventory or commercial real estate and for other business purposes. These loans amounted to $1.5 billion at December 31, 2025, an increase of $236.6 million from year end 2024. The yield on commercial loans was 6.68 percent for 2025, compared to 6.28 percent for the same period in 2024. The SBA 504 program, which consists of real estate backed commercial mortgages where the Company has the first mortgage and the SBA has the second mortgage on the property, is included in the Commercial loan portfolio. The Commercial Real Estate sub-category includes both owner occupied and non-owner occupied commercial mortgages.

Commercial construction loans amounted to $147.2 million for 2025, an increase of $17.0 million from the $130.2 million at 2024. The yield on commercial construction loans was 8.21 percent for 2025, compared to 8.81 percent for the same period in 2024.

Residential mortgage loans consist of loans secured by 1 to 4 family residential properties. These loans amounted to $677.2 million at December 31, 2025, an increase of $46.3 million from year end 2024. Sales of mortgage loans totaled $67.3 million and $65.3 million for 2025 and 2024, respectively. Approximately $66.3 million and $75.5 million in residential loans were sold but serviced by the Company at December 31, 2025 and December 31, 2024, respectively, and are not included on the Company’s Balance Sheet. The yield on residential mortgages was 6.32 percent for 2025, compared to 6.04 percent for 2024. Residential mortgage loans maintained in portfolio are generally to individuals that do not qualify for conventional financing. In extending credit to this category of borrowers, the Bank considers other mitigating factors such as credit history, equity and liquid reserves of the borrower. As a result, the residential mortgage loan portfolio of the Bank includes fixed and adjustable rate mortgages with rates that exceed the rates on conventional fixed-rate mortgage loan products but are typically not considered high priced mortgages.

Consumer loans consist of home equity loans and loans for the purpose of financing the purchase of consumer goods, home improvements and other personal needs, and are generally secured by 1 to 4 residential properties. These loans amounted to $85.2 million at December 31, 2025, an increase of $8.5 million from December 31, 2024. The yield on consumer loans was 7.08 percent for 2025, compared to 7.77 percent for 2024.

Table of Contents

Residential construction loans consist of short-term loans for the purpose of funding the costs of building a home. These loans amounted to $73.3 million at December 31, 2025, a decrease of $17.6 million from December 31, 2024. The yield on residential construction loans was 9.45 percent for 2025, compared to 8.61 percent for 2024.

There are no concentrations of loans to any borrowers or group of borrowers exceeding 10 percent of the total loan portfolio.

In the normal course of business, the Company may originate loan products whose terms could give rise to additional credit risk. Interest-only loans, loans with high LTV ratios, construction loans with payments made from interest reserves and multiple loans supported by the same collateral (e.g. home equity loans) are examples of such products. However, these products are not material to the Company’s financial position and are closely managed via credit controls that mitigate their additional inherent risk. Management does not believe that these products create a concentration of credit risk in the Company’s loan portfolio. The Company does not have any option adjustable rate mortgage loans.

The majority of the Company’s loans are secured by real estate. Declines in the market values of real estate in the Company’s trade area impact the value of the collateral securing its loans. This could lead to greater losses in the event of defaults on loans secured by real estate. At December 31, 2025 and 2024, approximately 96 percent of the Company’s loan portfolio was secured by real estate.

The table below shows the balances of loans serviced for others as of December 31, 2025 and 2024:




(In thousands)		2025			2024
Ending balance:
SBA loans held for investment		$	49,194		$	72,619
Residential mortgage			66,264			75,417
Commercial			28,354			30,984
Total loans serviced for others		$	143,812		$	179,020

The following table presents the maturity distribution of the loan portfolio at December 31, 2025:

December 31, 2025

(In thousands)

 

One year or less

 

One to five years

 

Five to fifteen years

Over fifteen years

Total

Loans held for sale

1,492

—

5,210

2,788

9,490

SBA loans

2,132

6,534

25,515

34,259

Commercial loans

SBA 504 loans

321

—

2,885

40,596

43,802

Commercial & industrial

51,064

32,725

44,442

54,932

183,163

Commercial real estate

41,443

81,853

235,563

932,208

1,291,067

Commercial construction

30,518

16,013

2,996

97,688

147,215

Residential mortgage loans

1,095

10,362

54,701

611,063

677,221

Consumer loans

Home equity

3,724

2,902

12,638

63,224

82,488

Consumer other

1,087

1,150

428

2,731

Residential construction loans

67,590

5,687

—

73,277

Total

198,412

152,824

365,397

1,828,080

2,544,713

Total (as a percentage of total loans)

7.8

6.0

14.4

71.8

100.0

Table of Contents

The following table presents the contractual maturities after one year for fixed and adjustable rate loans within each loan category at December 31, 2025:


(In thousands)	Loans Maturing After One Year
Loan Type	Fixed Rate	Adjustable Rate	Total

UNITY BANCORP INC /NJ/ 10-K