1. Think of it as a regional, community-focused version of a major national bank like Bank of America, serving specific areas of New Jersey and Pennsylvania.

2. It's like the local, independent bank equivalent to a large national chain like JPMorgan Chase, offering personalized services within specific regional markets.

• Deposit Accounts: Unity Bank offers various deposit accounts, including checking, savings, money market, and certificates of deposit, for individuals and businesses to securely manage their funds.
• Commercial Loans: The bank provides commercial real estate loans, commercial and industrial loans, and lines of credit to businesses for various operational and investment needs.
• Residential Mortgage Loans: Unity Bank offers residential mortgage loans to individuals for the purchase or refinancing of homes.
• Consumer Loans: The bank provides personal loans, home equity loans, and lines of credit to individuals for personal expenses and financial needs.
• Digital Banking Services: Unity Bank offers online and mobile banking platforms, bill pay, and ATM services for convenient account access and transaction management.

Unity Bancorp (UNTY) is a bank holding company. As such, its business model involves providing a wide range of financial services primarily to individuals and small to medium-sized businesses within its operating market, rather than having a few identifiable "major customers" in the way a manufacturing or technology company might. Therefore, the company sells primarily to individuals and businesses.

Here are the primary categories of customers that Unity Bancorp serves:

• Individuals/Consumers: This category includes individual customers who utilize the bank for personal financial needs such as checking accounts, savings accounts, money market accounts, certificates of deposit (CDs), residential mortgages, home equity loans, personal loans, and other consumer banking services.
• Small to Medium-sized Businesses (SMBs): Unity Bancorp serves a diverse base of local and regional businesses that require commercial banking services. This includes business checking and savings accounts, commercial and industrial loans (C&I loans), lines of credit, Small Business Administration (SBA) loans, treasury management services, and other financial products tailored for business operations.
• Commercial Real Estate Developers and Investors: A significant portion of a community bank's lending often goes to financing commercial real estate. This customer category includes individuals or entities involved in the acquisition, development, construction, or refinancing of commercial properties such as office buildings, retail centers, multi-family housing, and industrial facilities.

James A. Hughes, President & CEO

Mr. Hughes joined Unity Bancorp in December 2000 as Executive Vice President and Chief Financial Officer, and was appointed to his current position as President and Chief Executive Officer in 2003. Prior to joining Unity Bancorp, he was employed at Summit Bancorp of Princeton, New Jersey, and served as an audit manager with KPMG, L.L.P. Mr. Hughes is a Certified Public Accountant and holds a B.S. in Accounting and Finance from Mount St. Mary's College and an M.B.A. in Finance from Seton Hall University.

George Boyan, Executive Vice President & Chief Financial Officer

Mr. Boyan joined Unity Bancorp in April 2021 as Executive Vice President and Chief Financial Officer, bringing over 20 years of financial services leadership experience. Before joining Unity, he was the First Senior Vice President, Treasurer & Controller with Bank Leumi USA and also served as President of Leumi Investment Services. His career also includes experience with Goldman Sachs and MetLife. Mr. Boyan holds a B.S. in Finance & Political Science from Rutgers University, a Master's in Accounting from Rutgers Business School, and a Juris Doctor from Rutgers Law School.

John J. Kauchak, Executive Vice President & Chief Operating Officer

Mr. Kauchak serves as Executive Vice President and Chief Operating Officer at Unity Bancorp. He has held previous roles as Head of Deposit Operations and also served as Vice President/CEO at Unity Bancorp and UnityBank.

Vincent Geraci, First Senior Vice President & Director of Mortgage Lending

Mr. Geraci is the First Senior Vice President and Director of Mortgage Lending at Unity Bancorp.

James Donovan, Senior Vice President & Chief Lending Officer

Mr. Donovan holds the title of Senior Vice President and Chief Lending Officer at Unity Bancorp.

Key Risks to Unity Bancorp (UNTY)

Unity Bancorp, Inc. (UNTY) faces several significant risks inherent to the banking industry. The most prominent of these include interest rate fluctuations, credit risk within its loan portfolio, and the complex landscape of regulatory and operational challenges.

1. Interest Rate Risk: As a financial institution, Unity Bancorp is highly susceptible to changes in interest rates. Fluctuations can negatively impact its financial performance by affecting the bank's ability to originate new loans, attract and retain deposits, and influence the fair value of its financial assets and liabilities. The company actively employs asset-liability management to mitigate this exposure.
2. Credit Risk: The company is exposed to credit risks, particularly within its commercial real estate and Small Business Administration (SBA) loan portfolios. A deterioration in the credit quality of these loans could lead to increased delinquencies, foreclosures, and credit losses, thereby impacting the bank's profitability and financial stability. Unity Bancorp actively monitors its loan portfolio to manage these risks.
3. Regulatory and Operational Risks: Unity Bancorp operates within a highly regulated environment, meaning changes in banking laws and regulations, such as the Dodd-Frank Act, can increase operational costs and affect profitability. The company also faces ongoing operational risks, including the potential for data breaches and cyber-attacks, which could disrupt operations, damage its reputation, and result in significant financial liabilities. Cybersecurity is considered a material aspect of Unity Bank's business, especially given its reliance on digital delivery channels.

The clear emerging threat for Unity Bancorp (UNTY) and other traditional regional banks is the rapid growth and increasing market penetration of **digital-only banks (neobanks) and specialized online lending platforms**. These fintech companies leverage advanced technology, have significantly lower overhead due to the absence of physical branches, and often offer more competitive interest rates on deposits, lower fees, and superior, app-based digital user experiences. This trend directly challenges UNTY's ability to attract and retain both deposit customers and lending opportunities, particularly among younger demographics and businesses seeking highly efficient, technology-driven financial services. This shift in banking parallels the disruptive impact of companies like Netflix on Blockbuster by offering a fundamentally different and often more convenient service delivery model.

Unity Bancorp (symbol: UNTY) primarily offers financial services to retail, corporate, and small business customers, including various checking and savings accounts, as well as commercial, Small Business Administration (SBA), consumer, mortgage, and home equity loans. The company operates as a community bank with a regional focus in New Jersey and the Lehigh Valley, Pennsylvania.

The addressable markets for Unity Bancorp's main products and services in the U.S. are as follows:

• Retail Banking (U.S.): The United States retail banking market is valued at USD 0.87 trillion in 2025 and is projected to reach USD 1.08 trillion by 2030. Another estimate forecasts the U.S. retail banking market to grow by USD 92.1 billion between 2024 and 2029. The market is expected to reach USD 125.1 billion by 2033.
• Small Business Lending (U.S.): The estimated total lending volume to small businesses in the U.S. for 2025 is $760 billion. The U.S. small business loan market was valued at $245.39 billion in 2023 and is projected to reach $349.64 billion by 2033. Including commercial real estate loans, the total estimated value of the small business lending market, according to the Consumer Financial Protection Bureau (CFPB), is $1.4 trillion.
• Commercial Real Estate (CRE) Lending (U.S.): The U.S. commercial real estate mortgage market consists of $4.5 trillion backed by income-producing properties and $470 billion in construction loans, as of March 2023. Total commercial and multifamily loan originations are expected to climb to $583 billion in 2025. Total commercial and multifamily mortgage debt outstanding in the U.S. increased to $4.79 trillion in Q4 2024.
• Community Banking (U.S.): The U.S. community banking market was estimated at between USD 6.35 billion and US$205.4 billion in 2024, with projections for growth.

Here are 3-5 expected drivers of future revenue growth for Unity Bancorp (UNTY) over the next 2-3 years:

1. Mid-to-High Single-Digit Growth in Loans and Deposits: Unity Bancorp's management has explicitly stated targets for mid-to-high single-digit growth in both loans and deposits for the remainder of 2025 and beyond. This organic balance sheet expansion is a primary driver of increased net interest income.
2. Branch Network Expansion: The company is actively expanding its physical footprint, as evidenced by the opening of its 22nd branch in Madison, New Jersey, in 2025. This expansion aims to reinforce its commitment to serving local communities and deepening relationships across New Jersey, thereby attracting new customers and increasing market share.
3. Robust Loan Pipeline and Origination Capabilities: Unity Bancorp's commercial and residential lending teams continue to demonstrate strong origination capabilities, maintaining a robust loan pipeline. This pipeline, supported by high-quality credits and disciplined pricing, is expected to fuel continued loan growth.
4. Favorable Interest Rate Environment and Economic Stimulus: Unity Bancorp is considered well-positioned to benefit from potential Federal Reserve interest rate cuts and broader economic stimulus. Such a macro-economic environment typically supports increased lending activity and improved net interest margins for banks.

Share Repurchases

• On August 1, 2024, Unity Bancorp authorized a new Share Repurchase Program permitting the repurchase of up to 500,000 shares, which represents approximately 5.0% of its outstanding common stock.
• Under a previous program initiated on April 27, 2023, the company had repurchased 315,355 shares as of August 1, 2024, with 184,645 shares remaining for future repurchase.
• During the three and six months ended June 30, 2025, Unity Bancorp repurchased 50,000 shares at a weighted average cost of $38.78.

Share Issuance

• Unity Bancorp's number of outstanding shares fluctuated, decreasing from 10.53 million at the end of 2020 to 10.03 million by November 2025.
• A notable issuance occurred in the quarter ended September 30, 2025, through the conversion of Patriot National debt into approximately 2.7 million restricted common shares.