8-K

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                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

                       Pursuant to Section 13 or 15(d) of
                       the Securities Exchange Act of 1934

         Date of Report (Date of earliest event reported) July 28, 2000

                               UNITY BANCORP, INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


          DELAWARE                        1-12431                 22-3282551
- ----------------------------           ------------          -------------------
(State or other jurisdiction           (Commission              (IRS Employer
      of incorporation)                File Number)          Identification No.)


 64 OLD HIGHWAY 22, CLINTON, NEW JERSEY                                  08809
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(Address of principal executive offices)                              (Zip Code)


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

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Item 5. Other.

     The Registrant issued a press release on July 28, 2000 announcing
regulatory agreement.


Item 7. Exhibits.

     The following exhibit is filed with this Current Report on Form 8-K.

     Exhibit No.             Description
     -----------             -----------

           99                Press Release dated July 28, 2000


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                                   SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, Unity
Bancorp, Inc. has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                 UNITY BANCORP, INC.
                                    (Registrant)



Dated: July 31, 2000           By: /s/ KEVIN KILLIAN
                                   ------------------------------------------
                                       KEVIN KILLIAN, Chief Financial Officer


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                                  EXHIBIT INDEX

                           CURRENT REPORT ON FORM 8-K


Exhibit No.       Description                               Page No.
- -----------       -----------                               --------

       99         Press Release dated July 28, 2000         5 -6


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EX-99

EXHIBIT 99

                  UNITY ANNOUNCES REGULATORY AGREEMENT


CLINTON, NEW JERSEY, JULY 28, 2000 ... UNITY BANCORP, INC. (NASDAQ NM: UNTY),
and its subsidiary, Unity Bank, jointly announced today that they had entered
into stipulations and agreements with their respective primary regulators; the
Board of Governors of the Federal Reserve System with regard to the Company; and
the Federal Deposit Insurance Corporation and the New Jersey Department of
Banking and Insurance with regard to the Bank. The agreements outline a series
of affirmative steps to modify the Company's and Bank's procedures and
performance, many of which already have begun.

      "We welcome the agreements with our regulatory partners," stated Robert J.
Van Volkenburgh, Chairman and Chief Executive Officer of the Company. "The
agreements we have signed formalize the actions which the board and management
of the Bank have initiated. We are already in the process of undertaking many of
the activities provided for under the agreements." Additionally, in light of the
Bank's current financial performance, Mr. Van Volkenburgh and Vice Chairman
David D. Dallas have agreed to suspend payment of their compensation from the
Company.

      Among other things, the Bank and the Company are required to hire an
outside consulting firm to undertake a review of their management structures,
adopt strategic and capital plans which will increase the Bank's Tier 1 capital
ratio, review and adopt various updated policies and procedures, adopt programs
with regard to the resolution of certain criticized assets, and provide ongoing
reporting to the various regulatory agencies with regard to the Bank's progress
in meeting the requirements of the agreements. The agreements also require the
Bank to establish a compliance committee to oversee the Bank's efforts in
meeting all the requirements of the agreements.

      "The Bank remains in compliance with all federal capital requirements,
reporting a Tier 1 leverage ratio of 5.10%, a Tier 1 to risk-based capital ratio
of 7.34%, and a total risk-based capital ratio of 8.20% at June 30, 2000," noted
Van Volkenburgh. "Furthermore, we believe our third quarter performance will
demonstrate the results of the substantial steps we have taken thus far."

      The Company also announced that it was suspending the dividend payment due
July 15, 2000, on shares of its Class A preferred stock. Under the regulatory
agreements, the Company is restricted from paying dividends on either its common
stock or preferred shares without prior regulatory approval.

      "It should be emphasized that these agreements will not affect the way the
Bank conducts business with its customers, nor the deposit insurance provided
for by the FDIC, " added Van Volkenburgh. "Rather, these steps strengthen
Unity's commitment to refocus energies and attention on the core community
banking franchise."


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      For additional information about the Bank, call Unity Direct at
800.618.BANK, or visit Unity's website at www.unitybank.com. E-mail may be
addressed to the Bank at info@unitybank.com.

Contact: Kevin Killian, Chief Financial Officer of the Company and Bank;
908.730.7630.


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