Exhibit 99.1

Clinton, NJ -- Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $9.6 million, or $0.93 per diluted share, for the quarter ended March 31, 2024, compared to net income of $9.8 million, or $0.96 per diluted share for the quarter ended December 31, 2023. This represents a 1.9% decrease in net income and a 3.1% decrease in net income per diluted share.  

First Quarter Earnings Highlights

● Net interest income, the primary driver of earnings, was $23.8 million for the quarter ended March 31, 2024, a decrease of $0.2 million, as compared to $24.0 million for the quarter ended December 31, 2023. Net interest margin (“NIM”) increased 3 basis points to 4.09% for the quarter ended March 31, 2024, compared to the quarter ended December 31, 2023. The increase was primarily due to assets repricing and the mix shift of interest-bearing liabilities.

● The provision for credit losses on loans was $0.6 million for the quarter ended March 31, 2024, compared to $0.4 million for the quarter ended December 31, 2023.  The increase was primarily driven by increases in the general and specific reserve calculations.

● Noninterest income was $1.7 million for the quarter ended March 31, 2024, compared to $2.6 million for the quarter ended December 31, 2023. The $0.9 million decrease was primarily due to smaller mark-to-market increases in the Company’s equity portfolio,  lower SBA sale gains and lower service and loan fee income. The Bank sold $2.4 million of SBA loans during the quarter ended March 31, 2024, compared to $4.7 million during the quarter ended December 31, 2023.

● Noninterest expense was $12.1 million for the quarter ended March 31, 2024, compared to $11.7 million for the quarter ended December 31, 2023.  The increase was primarily driven by higher compensation expenses and other expenses. These increases were partially offset by lower professional services and furniture and equipment related expenses.  

● The effective tax rate was 25.0% for the quarter ended March 31, 2024, compared to 25.1% for the quarter ending December 31, 2023.

Balance Sheet Highlights

● Total gross loans increased $2.4 million, or 0.1%, from December 31, 2023, primarily due to increases in commercial loans. These increases were partially offset by decreases in the residential mortgage and residential construction loan categories.  

● As of March 31, 2024, the allowance for credit losses as a percentage of gross loans was 1.20%.

● Total deposits increased $37.1 million, or 1.9%, from December 31, 2023.  As of March 31, 2024, 17.2% of total deposits were uninsured or uncollateralized. The Company’s deposit composition as of March 31, 2024, consisted of 20.2% in noninterest bearing demand deposits, 16.6% in interest-bearing demand deposits, 28.8% in savings deposits, and 34.4% in time deposits.

● As of March 31, 2024, the loan to deposit ratio was approximately 110.9%, representing a continued reduction from 112.9% as of December 31, 2023. As the Company continues to operate closer to 110%, management will re-evaluate lending initiatives.

● As of March 31, 2024, investments comprised 5.4% of total assets. Available for sale debt securities (“AFS”) were $94.7 million or 3.7% of total assets. Held to maturity (“HTM”) debt securities were $36.1 million or 1.4% of total assets. As of March 31, 2024, pre-tax net unrealized losses on AFS and HTM were $4.5 million and $7.0 million, respectively. These pre-tax unrealized losses represent approximately 4.1% of the Company’s Tier 1 capital. Equity securities were $7.9 million or 0.3% of total assets as of March 31, 2024.

● Borrowed funds decreased $57.0 million from December 31, 2023. Borrowed funds were entirely comprised of borrowings from the FHLB.

● Shareholders’ equity was $266.8 million as of March 31, 2024, compared to $261.4 million as of December 31, 2023. The $5.3 million increase was primarily driven by first quarter earnings, partially offset by share repurchases and dividend payments. In the first quarter of 2024, Unity Bancorp repurchased 150,000 shares for approximately $4.1 million, or a weighted average price of $27.17 per share.

● Book value per common share was $26.56 as of March 31, 2024, compared to $25.98 as of December 31, 2023 primarily reflecting earnings, dividend payouts and share repurchases.

● Below is a summary of the Company’s regulatory capital ratios:

o Leverage Ratio increased 25 basis points to 11.39% at March 31, 2024, compared to 11.14% at December 31, 2023.

o Common Equity Tier 1 Capital Ratio increased 20 basis points to 12.90% at March 31, 2024, compared to 12.70% at December 31, 2023.

o Tier 1 Capital Ratio increased 20 basis points to 13.38% at March 31, 2024, compared to 13.18% at December 31, 2023.

o Total Capital Ratio increased 20 basis points, to 14.63% at March 31, 2024, compared to 14.43% at December 31, 2023.

● At March 31, 2024, the Company held $183.0 million of cash and cash equivalents. Further, the Company maintained approximately $546.0 million of funding available from various funding sources, including the FHLB, FRB Discount Window

and other lines of credit. Additionally, the Company can pledge securities for further borrowing capacity. Total available funding plus cash on hand represented 215.6% of uninsured or uncollateralized deposits.

● As of March 31, 2024, nonperforming assets were $16.9 million, compared to $19.2 million as of December 31, 2023. The Company diligently reviews nonperforming assets and potential problem credits, taking proactive measures to promptly address and resolve any issues. Nonperforming loans to total loans was 0.78% as of March 31, 2024. Nonperforming assets to total assets was 0.66% as of March 31, 2024.  

Other Highlights

❖ In February 2024, Unity Bancorp Inc. announced an 8% increase in its first quarter dividend, to $0.13 per common share compared to $0.12 per common share in the prior quarter. This represents the fifth increase in the last four years.

❖ In March 2024, Unity Bank qualified for the FHLBNY’s 0% Development Advance Program (ZDA). Under this program, Unity Bank was approved for a $4.4 million zero percent advance because the Bank originated small business community development loans that qualified under the FHLBNY’s program guidelines.  Unity Bank has also participated in this program in 2023 when it similarly qualified for a $4.4 million advance.

❖ On April 25, 2024, Unity Bancorp Inc. will hold its annual shareholder meeting. Investors are encouraged to submit their proxy votes at: meetnow.global/M52SR5Z

Unity Bancorp, Inc. is a financial services organization headquartered in Clinton, New Jersey, with approximately $2.6 billion in assets and $2.0 billion in deposits.  Unity Bank, the Company’s wholly owned subsidiary, provides financial services to retail, corporate and small business customers through its robust branch network located in Bergen, Hunterdon, Middlesex, Morris, Ocean, Somerset, Union and Warren Counties in New Jersey and Northampton County in Pennsylvania.  For additional information about Unity, visit our website at www.unitybank.com , or call 800-618-BANK.

This news release contains certain forward-looking statements, either expressed or implied, which are provided to assist the reader in understanding anticipated future financial performance.  These statements may be identified by use of the words “believe”, “expect”, “intend”, “anticipate”, “estimate”, “project” or similar expressions.  These statements involve certain risks, uncertainties, estimates and assumptions made by management, which are subject to factors beyond the Company’s control and could impede its ability to achieve these goals.  These factors include those items included in our Annual Report on Form 10-K under the heading “Item IA-Risk Factors” as amended or supplemented by our subsequent filings with the SEC, as well as general economic conditions, trends in interest rates, the ability of our borrowers to repay their loans, our ability to manage and reduce the level of our nonperforming assets, results of regulatory exams, and the impact of COVID-19 on the Bank, its employees and customers, among other factors.

UNITY BANCORP, INC.

SUMMARY FINANCIAL HIGHLIGHTS

March 31, 2024

										March 31, 2024 vs.
										December 31, 2023		March 31, 2023
(In thousands, except percentages and per share amounts)	March 31, 2024			December 31, 2023			March 31, 2023			%		%
BALANCE SHEET DATA
Total assets	$	2,568,088		$	2,578,507		$	2,475,851		(0.4)	%	3.7	%
Total deposits		1,961,270			1,924,140			1,823,921		1.9		7.5
Total gross loans		2,174,457			2,172,063			2,130,919		0.1		2.0
Total securities		138,702			135,689			138,264		2.2		0.3
Total shareholders' equity		266,761			261,430			240,459		2.0		10.9
Allowance for credit losses		26,080			25,854			26,201		0.9		(0.5)
FINANCIAL DATA - QUARTER TO DATE
Income before provision for income taxes	$	12,784		$	13,048		$	13,791		(2.0)		(7.3)
Provision for income taxes		3,198			3,278			3,504		(2.4)		(8.7)
Net income	$	9,586		$	9,770		$	10,287		(1.9)		(6.8)
Net income per common share - Basic	$	0.95		$	0.97		$	0.98		(2.1)		(3.1)
Net income per common share - Diluted		0.93			0.96			0.96		(3.1)		(3.1)
PERFORMANCE RATIOS - QUARTER TO DATE (annualized)
Return on average assets		1.58	%		1.59	%		1.72	%
Return on average equity		14.49			15.12			17.14
Efficiency ratio **		47.57			43.06			44.56
Net interest margin		4.09			4.06			4.19
SHARE INFORMATION
Market price per share	$	27.60		$	29.59		$	22.81		(6.7)		21.0
Dividends paid		0.13			0.12			0.12		8.3		8.3
Book value per common share		26.56			25.98			23.34		2.2		13.8
Average diluted shares outstanding (QTD)		10,276			10,209			10,686		0.7		(3.8)
CAPITAL RATIOS***
Total equity to total assets		10.39	%		10.14	%		9.71	%	2.5		7.0
Leverage ratio		11.39			11.14			10.38		2.2		9.7
Common Equity Tier 1 Capital Ratio		12.90			12.70			11.76		1.6		9.7
Risk-based Tier 1 Capital Ratio		13.38			13.18			12.25		1.5		9.2
Risk-based Total Capital Ratio		14.63			14.43			13.50		1.4		8.4
CREDIT QUALITY AND RATIOS
Nonperforming assets	$	16,890		$	19,186		$	14,683		(12.0)		15.0
QTD annualized net (chargeoffs)/recoveries to QTD average loans		(0.08)	%		(0.09)	%		0.01	%
Allowance for credit losses to total loans		1.20			1.19			1.23
Nonperforming loans to total loans		0.78			0.88			0.69
Nonperforming assets to total assets		0.66			0.74			0.59
** The efficiency ratio is a non-GAAP measure, calculated based on the noninterest expense divided by the sum of net interest income plus non interest income, excluding net gains and losses on securities and provision for impairment losses, AFS securities.
*** Represents Bancorp consolidated capital ratios.

UNITY BANCORP, INC.

CONSOLIDATED BALANCE SHEETS

March 31, 2024

							March 31, 2024 vs.
							December 31, 2023		March 31, 2023
(In thousands, except percentages)	March 31, 2024		December 31, 2023		March 31, 2023		%		%
ASSETS
Cash and due from banks	$	20,619	$	20,668	$	23,893	(0.2)	%	(13.7)	%
Interest-bearing deposits		162,367		174,108		103,194	(6.7)		57.3
Cash and cash equivalents		182,986		194,776		127,087	(6.1)		44.0
Securities:
Debt securities available for sale, at market value		94,682		91,765		94,113	3.2		0.6
Debt securities held to maturity, at book value		36,089		36,122		35,824	(0.1)		0.7
Equity securities, at market value		7,931		7,802		8,327	1.7		(4.8)
Total securities		138,702		135,689		138,264	2.2		0.3
Loans:
SBA loans held for sale		18,439		18,242		23,314	1.1		(20.9)
SBA loans held for investment		39,009		38,584		39,370	1.1		(0.9)
SBA PPP loans		2,168		2,318		2,545	(6.5)		(14.8)
Commercial loans		1,291,319		1,277,460		1,205,642	1.1		7.1
Residential mortgage loans		627,464		631,506		619,140	(0.6)		1.3
Consumer loans		72,275		72,676		76,784	(0.6)		(5.9)
Residential construction loans		123,783		131,277		164,124	(5.7)		(24.6)
Total loans		2,174,457		2,172,063		2,130,919	0.1		2.0
Allowance for credit losses		(26,080)		(25,854)		(26,201)	0.9		(0.5)
Net loans		2,148,377		2,146,209		2,104,718	0.1		2.1
Premises and equipment, net		19,281		19,567		19,868	(1.5)		(3.0)
Bank owned life insurance ("BOLI")		25,295		25,230		26,856	0.3		(5.8)
Deferred tax assets		12,681		12,552		12,360	1.0		2.6
Federal Home Loan Bank ("FHLB") stock		15,896		18,435		18,688	(13.8)		(14.9)
Accrued interest receivable		13,165		13,582		14,314	(3.1)		(8.0)
Goodwill		1,516		1,516		1,516	-		-
Prepaid expenses and other assets		10,189		10,951		12,180	(7.0)		(16.3)
Total assets	$	2,568,088	$	2,578,507	$	2,475,851	(0.4)	%	3.7	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing demand	$	395,520	$	419,636	$	450,058	(5.7)	%	(12.1)	%
Interest-bearing demand		325,174		312,208		288,217	4.2		12.8
Savings		504,210		497,491		515,365	1.4		(2.2)
Brokered deposits		235,755		268,408		244,372	(12.2)		(3.5)
Time deposits		500,611		426,397		325,909	17.4		53.6
Total deposits		1,961,270		1,924,140		1,823,921	1.9		7.5
Borrowed funds		299,397		356,438		374,000	(16.0)		(19.9)
Subordinated debentures		10,310		10,310		10,310	-		-
Accrued interest payable		1,551		1,924		932	(19.4)		66.4
Accrued expenses and other liabilities		28,799		24,265		26,229	18.7		9.8
Total liabilities		2,301,327		2,317,077		2,235,392	(0.7)		2.9
Shareholders' equity:
Common stock		101,676		100,426		98,197	1.2		3.5
Retained earnings		199,380		191,108		165,335	4.3		20.6
Treasury stock, at cost		(31,443)		(27,367)		(19,894)	14.9		58.1
Accumulated other comprehensive loss		(2,852)		(2,737)		(3,179)	4.2		(10.3)
Total shareholders' equity		266,761		261,430		240,459	2.0		10.9
Total liabilities and shareholders' equity	$	2,568,088	$	2,578,507	$	2,475,851	(0.4)	%	3.7	%
Shares issued		11,555		11,424		11,335
Shares outstanding		10,044		10,063		10,292
Treasury shares		1,511		1,361		1,043
*NM=Not meaningful

UNITY BANCORP, INC.

QTD CONSOLIDATED STATEMENTS OF INCOME

March 31, 2024

										March 31, 2024 vs.
	For the three months ended									December 31, 2023					March 31, 2023
(In thousands, except percentages and per share amounts)	March 31, 2024			December 31, 2023			March 31, 2023			$		%			$		%
INTEREST INCOME
Interest-bearing deposits	$	420		$	466		$	333		$	(46)		(9.9)	%	$	87		26.1	%
FHLB stock		280			331			331			(51)		(15.4)			(51)		(15.4)
Securities:
Taxable		1,849			1,886			1,739			(37)		(2.0)			110		6.3
Tax-exempt		18			17			19			1		5.9			(1)		(5.3)
Total securities		1,867			1,903			1,758			(36)		(1.9)			109		6.2
Loans:
SBA loans		1,333			1,303			1,404			30		2.3			(71)		(5.1)
SBA PPP loans		8			8			77			-		-			(69)		(89.6)
Commercial loans		20,830			20,646			17,401			184		0.9			3,429		19.7
Residential mortgage loans		9,219			9,091			8,109			128		1.4			1,110		13.7
Consumer loans		1,402			1,391			1,354			11		0.8			48		3.5
Residential construction loans		2,578			2,619			2,586			(41)		(1.6)			(8)		(0.3)
Total loans		35,370			35,058			30,931			312		0.9			4,439		14.4
Total interest income		37,937			37,758			33,353			179		0.5			4,584		13.7
INTEREST EXPENSE
Interest-bearing demand deposits		1,710			1,523			965			187		12.3			745		77.2
Savings deposits		3,144			3,037			1,554			107		3.5			1,590		102.3
Brokered deposits		2,295			2,285			1,562			10		0.4			733		46.9
Time deposits		4,699			4,011			1,563			688		17.2			3,136		200.6
Borrowed funds and subordinated debentures		2,248			2,871			3,799			(623)		(21.7)			(1,551)		(40.8)
Total interest expense		14,096			13,727			9,443			369		2.7			4,653		49.3
Net interest income		23,841			24,031			23,910			(190)		(0.8)			(69)		(0.3)
Provision for credit losses, loans		641			413			108			228		55.2			533		493.5
Provision for credit losses, off-balance sheet		2			115			-			(113)		(98.3)			2		*NM
Provision for impairment losses, AFS securities		-			1,283			-			(1,283)		(100.0)			-		-
Net interest income after provision for credit losses		23,198			22,220			23,802			978		4.4			(604)		(2.5)
NONINTEREST INCOME
Branch fee income		243			256			235			(13)		(5.1)			8		3.4
Service and loan fee income		457			550			503			(93)		(16.9)			(46)		(9.1)
Gain on sale of SBA loans held for sale, net		238			403			309			(165)		(40.9)			(71)		(23.0)
Gain on sale of mortgage loans, net		320			351			244			(31)		(8.8)			76		31.1
BOLI income		65			9			80			56		622.2			(15)		(18.8)
Net securities gains (losses)		54			617			(322)			(563)		(91.2)			376		116.8
Other income		341			382			368			(41)		(10.7)			(27)		(7.3)
Total noninterest income		1,718			2,568			1,417			(850)		(33.1)			301		21.2
NONINTEREST EXPENSE
Compensation and benefits		7,357			7,250			7,090			107		1.5			267		3.8
Processing and communications		906			822			804			84		10.2			102		12.7
Occupancy		798			775			770			23		3.0			28		3.6
Furniture and equipment		684			756			689			(72)		(9.5)			(5)		(0.7)
Professional services		436			492			427			(56)		(11.4)			9		2.1
Advertising		400			328			260			72		22.0			140		53.8
Loan related expenses		384			398			175			(14)		(3.5)			209		119.4
Deposit insurance		339			353			348			(14)		(4.0)			(9)		(2.6)
Director fees		247			218			217			29		13.3			30		13.8
Other expenses		581			348			648			233		67.0			(67)		(10.3)
Total noninterest expense		12,132			11,740			11,428			392		3.3			704		6.2
Income before provision for income taxes		12,784			13,048			13,791			(264)		(2.0)			(1,007)		(7.3)
Provision for income taxes		3,198			3,278			3,504			(80)		(2.4)			(306)		(8.7)
Net income	$	9,586		$	9,770		$	10,287		$	(184)		(1.9)	%	$	(701)		(6.8)	%
Effective tax rate		25.0	%		25.1	%		25.4	%
Net income per common share - Basic	$	0.95		$	0.97		$	0.98
Net income per common share - Diluted		0.93			0.96			0.96
Weighted average common shares outstanding - Basic		10,127			10,066			10,538
Weighted average common shares outstanding - Diluted		10,276			10,209			10,686
*NM=Not meaningful

UNITY BANCORP, INC.

QUARTER TO DATE NET INTEREST MARGIN

March 31, 2024

	For the three months ended
(Dollar amounts in thousands, interest amounts and	March 31, 2024							March 31, 2023
interest rates/yields on a fully tax-equivalent basis)	Average Balance		Interest		Rate/Yield			Average Balance		Interest		Rate/Yield
ASSETS
Interest-earning assets:
Interest-bearing deposits	$	30,685	$	420		5.50	%	$	32,778	$	333		4.12	%
FHLB stock		11,000		280		10.23			16,776		331		7.99
Securities:
Taxable		134,874		1,849		5.48			138,379		1,739		5.03
Tax-exempt		1,658		18		4.47			1,753		20		4.49
Total securities (A)		136,532		1,867		5.47			140,132		1,759		5.02
Loans:
SBA loans		58,120		1,333		9.17			66,625		1,404		8.43
SBA PPP loans		2,215		8		1.38			4,243		77		7.26
Commercial loans		1,281,600		20,830		6.43			1,199,577		17,401		5.80
Residential mortgage loans		625,451		9,219		5.90			614,936		8,109		5.27
Consumer loans		70,250		1,402		7.90			77,121		1,354		7.02
Residential construction loans		129,720		2,578		7.86			163,821		2,586		6.31
Total loans (B)		2,167,356		35,370		6.46			2,126,323		30,931		5.82
Total interest-earning assets	$	2,345,573	$	37,937		6.51	%	$	2,316,009	$	33,354		5.84	%
Noninterest-earning assets:
Cash and due from banks		23,220							22,738
Allowance for credit losses		(26,059)							(25,778)
Other assets		94,001							111,104
Total noninterest-earning assets		91,162							108,064
Total assets	$	2,436,735						$	2,424,073
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits	$	324,829	$	1,710		2.12	%	$	286,172	$	965		1.37	%
Savings deposits		503,071		3,144		2.51			536,021		1,554		1.18
Brokered deposits		243,592		2,295		3.79			236,724		1,562		2.68
Time deposits		465,166		4,699		4.06			286,354		1,563		2.21
Total interest-bearing deposits		1,536,658		11,848		3.10			1,345,271		5,644		1.70
Borrowed funds and subordinated debentures		201,335		2,248		4.41			342,398		3,799		4.44
Total interest-bearing liabilities	$	1,737,993	$	14,096		3.26	%	$	1,687,669	$	9,443		2.27	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		403,847							468,407
Other liabilities		28,747							24,541
Total noninterest-bearing liabilities		432,594							492,948
Total shareholders' equity		266,148							243,456
Total liabilities and shareholders' equity	$	2,436,735						$	2,424,073
Net interest spread			$	23,841		3.25	%			$	23,911		3.57	%
Tax-equivalent basis adjustment				-							(1)
Net interest income			$	23,841						$	23,910
Net interest margin						4.09	%						4.19	%

(A) Yields related to securities exempt from federal and state income taxes are stated on a fully tax-equivalent basis. They are reduced by the nondeductible portion of interest expense, assuming a federal tax rate of 21 percent and applicable state rates.

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

UNITY BANCORP, INC.

QUARTER TO DATE NET INTEREST MARGIN

March 31, 2024

	For the three months ended
(Dollar amounts in thousands, interest amounts and	March 31, 2024							December 31, 2023
interest rates/yields on a fully tax-equivalent basis)	Average Balance		Interest		Rate/Yield			Average Balance		Interest		Rate/Yield
ASSETS
Interest-earning assets:
Interest-bearing deposits	$	30,685	$	420		5.50	%	$	34,725	$	466		5.33	%
FHLB stock		11,000		280		10.23			12,563		331		10.46
Securities:
Taxable		134,874		1,849		5.48			133,827		1,886		5.64
Tax-exempt		1,658		18		4.47			1,583		18		4.13
Total securities (A)		136,532		1,867		5.47			135,410		1,904		5.62
Loans:
SBA loans		58,120		1,333		9.17			58,962		1,303		8.84
SBA PPP loans		2,215		8		1.38			2,376		8		1.36
Commercial loans		1,281,600		20,830		6.43			1,270,550		20,646		6.36
Residential mortgage loans		625,451		9,219		5.90			630,598		9,091		5.77
Consumer loans		70,250		1,402		7.90			71,026		1,391		7.66
Residential construction loans		129,720		2,578		7.86			133,485		2,619		7.68
Total loans (B)		2,167,356		35,370		6.46			2,166,997		35,058		6.33
Total interest-earning assets	$	2,345,573	$	37,937		6.51	%	$	2,349,695	$	37,759		6.38	%
Noninterest-earning assets:
Cash and due from banks		23,220							22,367
Allowance for credit losses		(26,059)							(26,064)
Other assets		94,001							94,253
Total noninterest-earning assets		91,162							90,556
Total assets	$	2,436,735						$	2,440,251
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits	$	324,829	$	1,710		2.12	%	$	321,015	$	1,523		1.88	%
Savings deposits		503,071		3,144		2.51			506,741		3,037		2.38
Brokered deposits		243,592		2,295		3.79			246,190		2,285		3.68
Time deposits		465,166		4,699		4.06			423,439		4,011		3.76
Total interest-bearing deposits		1,536,658		11,848		3.10			1,497,385		10,856		2.88
Borrowed funds and subordinated debentures		201,335		2,248		4.41			236,278		2,871		4.75
Total interest-bearing liabilities	$	1,737,993	$	14,096		3.26	%	$	1,733,663	$	13,727		3.14	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		403,847							421,229
Other liabilities		28,747							29,047
Total noninterest-bearing liabilities		432,594							450,278
Total shareholders' equity		266,148							256,312
Total liabilities and shareholders' equity	$	2,436,735						$	2,440,251
Net interest spread			$	23,841		3.25	%			$	24,032		3.24	%
Tax-equivalent basis adjustment				-							(1)
Net interest income			$	23,841						$	24,031
Net interest margin						4.09	%						4.06	%

(A) Yields related to securities exempt from federal and state income taxes are stated on a fully tax-equivalent basis. They are reduced by the nondeductible portion of interest expense, assuming a federal tax rate of 21 percent and applicable state rates.

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

UNITY BANCORP, INC.

QUARTERLY ALLOWANCE FOR CREDIT LOSSES AND LOAN QUALITY SCHEDULES

March 31, 2024

Amounts in thousands, except percentages	March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023
ALLOWANCE FOR CREDIT LOSSES:
Balance, beginning of period	$	25,854		$	25,918		$	25,988		$	26,201		$	25,196
Impact of the adoption of ASU 2016-13 ("CECL")		-			-			-			-			847
Provision for credit losses on loans charged to expense		641			413			534			777			108
		26,495			26,331			26,522			26,978			26,151
Less: Chargeoffs
SBA loans		-			-			100			-			113
Commercial loans		98			252			500			-			-
Residential mortgage loans		-			-			-			-			-
Consumer loans		70			274			52			225			120
Residential construction loans		277			100			-			900			-
Total chargeoffs		445			626			652			1,125			233
Add: Recoveries
SBA loans		8			-			1			15			-
Commercial loans		12			23			10			96			271
Residential mortgage loans		-			4			-			-			-
Consumer loans		10			11			37			24			12
Residential construction loans		-			111			-			-			-
Total recoveries		30			149			48			135			283
Net (chargeoffs)/recoveries		(415)			(477)			(604)			(990)			50
Balance, end of period	$	26,080		$	25,854		$	25,918		$	25,988		$	26,201
LOAN QUALITY INFORMATION:
Nonperforming loans:
SBA loans	$	3,542		$	3,444		$	3,445		$	3,591		$	4,325
Commercial loans		2,415			1,948			750			835			1,144
Residential mortgage loans		7,440			11,272			10,530			8,607			5,565
Consumer loans		366			381			130			-			-
Residential construction loans		3,127			2,141			3,201			3,182			3,473
Total nonperforming loans		16,890			19,186			18,056			16,215			14,507
OREO		-			-			251			251			176
Nonperforming assets		16,890			19,186			18,307			16,466			14,683
Loans 90 days past due & still accruing	$	138		$	946		$	265		$	-		$	-
Nonperforming loans to total loans		0.78	%		0.88	%		0.84	%		0.76	%		0.69
Nonperforming assets to total assets		0.66			0.74			0.71			0.65			0.59
Allowance for loan losses to:
Total loans at quarter end		1.20	%		1.19	%		1.19	%		1.20	%		1.23
Total nonperforming loans		154.41			134.75			141.57			157.83			178.44

UNITY BANCORP, INC.

QUARTERLY FINANCIAL DATA

March 31, 2024

(In thousands, except %'s, employee, office and per share amounts)	March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023
SUMMARY OF INCOME:
Total interest income	$	37,937		$	37,758		$	36,990		$	35,392		$	33,353
Total interest expense		14,096			13,727			13,457			11,870			9,443
Net interest income		23,841			24,031			23,533			23,522			23,910
Provision for credit losses		643			1,811			556			693			108
Net interest income after provision for credit losses		23,198			22,220			22,977			22,829			23,802
Total noninterest income		1,718			2,568			2,043			2,115			1,417
Total noninterest expense		12,132			11,740			11,973			11,835			11,428
Income before provision for income taxes		12,784			13,048			13,047			13,109			13,791
Provision for income taxes		3,198			3,278			3,097			3,409			3,504
Net income	$	9,586		$	9,770		$	9,950		$	9,700		$	10,287
Net income per common share - Basic	$	0.95		$	0.97		$	0.98		$	0.96		$	0.98
Net income per common share - Diluted		0.93			0.96			0.97			0.95			0.96
COMMON SHARE DATA:
Market price per share	$	27.60		$	29.59		$	23.43		$	23.59		$	22.81
Dividends paid		0.13			0.12			0.12			0.12			0.12
Book value per common share		26.56			25.98			24.95			24.12			23.34
Weighted average common shares outstanding - Basic		10,127			10,066			10,128			10,103			10,538
Weighted average common shares outstanding - Diluted		10,276			10,209			10,258			10,203			10,686
Issued common shares		11,555			11,424			11,411			11,387			11,335
Outstanding common shares		10,044			10,063			10,115			10,119			10,292
Treasury shares		1,511			1,361			1,296			1,268			1,043
PERFORMANCE RATIOS (Annualized):
Return on average assets		1.58	%		1.59	%		1.61	%		1.60	%		1.72	%
Return on average equity		14.49			15.12			15.84			16.19			17.14
Efficiency ratio**		47.57			43.06			46.59			45.54			44.56
BALANCE SHEET DATA:
Total assets	$	2,568,088		$	2,578,507		$	2,563,006		$	2,552,301		$	2,475,851
Total securities		138,702			135,689			136,091			137,061			138,264
Total loans		2,174,457			2,172,063			2,173,190			2,167,367			2,130,919
Allowance for credit losses		26,080			25,854			25,918			25,988			26,201
Total deposits		1,961,270			1,924,140			1,884,910			1,849,528			1,823,921
Total shareholders' equity		266,761			261,430			252,384			244,073			240,459
TAX EQUIVALENT YIELDS AND RATES:
Interest-earning assets		6.51	%		6.38	%		6.22	%		6.07	%		5.84	%
Interest-bearing liabilities		3.26			3.14			3.05			2.75			2.27
Net interest spread		3.25			3.24			3.17			3.32			3.57
Net interest margin		4.09			4.06			3.96			4.04			4.19
CREDIT QUALITY:
Nonperforming assets	$	16,890		$	19,186		$	18,307		$	16,466		$	14,683
QTD annualized net (chargeoffs)/recoveries to QTD average loans		(0.08)	%		(0.09)	%		(0.11)	%		(0.18)	%		0.01	%
Allowance for credit losses to total loans		1.20			1.19			1.19			1.20			1.23
Nonperforming loans to total loans		0.78			0.88			0.84			0.76			0.68
Nonperforming assets to total assets		0.66			0.74			0.71			0.65			0.59
CAPITAL RATIOS*** AND OTHER:
Total equity to total assets		10.39	%		10.14	%		9.85	%		9.56	%		9.71	%
Leverage ratio		11.39			11.14			10.76			10.49			10.38
Common Equity Tier 1 Capital Ratio		12.90			12.70			12.16			11.74			11.76
Risk-based Tier 1 Capital Ratio		13.38			13.18			12.64			12.21			12.25
Risk-based Total Capital Ratio		14.63			14.43			13.88			13.45			13.50

Number of banking offices	21	21	21	20	20
Employee Full-Time Equivalent	217	232	232	230	227
** The efficiency ratio is a non-GAAP measure, calculated based on the noninterest expense divided by the sum of net interest income plus non interest income, excluding net gains and losses on securities and provision for impairment losses, AFS securities.
'*** Represents Bancorp consolidated capital ratios.

Unity Bancorp, Inc

Loan Portfolio Composition

March 31, 2024

In thousands, except percentages	March 31, 2024		%	December 31, 2023		%
SBA Loans:
SBA loans held for sale	$	18,439	0.8%	$	18,242	0.8%
SBA loans held for investment		39,009	1.8%		38,584	1.8%
SBA PPP		2,168	0.1%		2,318	0.1%
Total SBA Loans		59,616	2.7%		59,144	2.7%
Commercial Loans
Commercial construction		142,345	6.5%		129,159	5.9%
SBA 504		38,128	1.8%		33,669	1.6%
Commercial & Industrial		133,409	6.1%		128,402	5.9%
Commercial Mortgage - Owner Occupied		512,616	23.6%		502,397	23.1%
Commercial Mortgage - Nonowner Occupied		412,325	19.0%		424,490	19.5%
Other		52,496	2.4%		59,342	2.7%
Total Commercial Loans		1,291,319	59.4%		1,277,459	58.8%
Residential Mortgage loans		627,464	28.9%		631,506	29.1%
Consumer Loans
Home equity		67,448	3.1%		67,037	3.0%
Consumer other		4,827	0.2%		5,639	0.3%
Total Consumer Loans		72,275	3.3%		72,676	3.3%
Residential Construction		123,783	5.7%		131,277	6.0%
Total Gross Loans	$	2,174,457	100.0%	$	2,172,063	100.0%