--- title: "Unity Bancorp | 10-Q: FY2026 Q1 Revenue: USD 48.06 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285613913.md" datetime: "2026-05-07T20:34:59.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285613913.md) - [en](https://longbridge.com/en/news/285613913.md) - [zh-HK](https://longbridge.com/zh-HK/news/285613913.md) --- # Unity Bancorp | 10-Q: FY2026 Q1 Revenue: USD 48.06 M Revenue: As of FY2026 Q1, the actual value is USD 48.06 M. EPS: As of FY2026 Q1, the actual value is USD 1.4, beating the estimate of USD 1.375. EBIT: As of FY2026 Q1, the actual value is USD -12.24 M. #### Operational Metrics - Net income for Unity Bancorp, Inc. was $14.3 million for the three months ended March 31, 2026, an increase from $11.6 million for the same period in 2025. - Return on Average Assets (ROAA) was 2.04% for the three months ended March 31, 2026, compared to 1.83% for the same period in 2025. - Return on Average Equity (ROAE) was 16.38% for the three months ended March 31, 2026, compared to 15.56% for the same period in 2025. - The dividend payout ratio was 11.43% for the three months ended March 31, 2026, a decrease from 12.39% in the prior year’s quarter. - The average equity to average assets ratio was 12.44% for the three months ended March 31, 2026, compared to 11.78% for the same period in 2025. - The provision for credit losses for loans was $1.043 million for the three months ended March 31, 2026, a decrease from $1.358 million for the same period in 2025. - The provision for credit losses for off-balance sheet exposures was $5 thousand for the three months ended March 31, 2026, compared to a - $41 thousand release for the same period in 2025. - The effective tax rate was 22.7% for the three months ended March 31, 2026, lower than 24.8% in the prior year’s first quarter. #### Segment Revenue (Noninterest Income) - Total noninterest income increased by 36.9% to $2.876 million for the three months ended March 31, 2026, from $2.101 million in the prior year’s first quarter. - Branch fee income was $489 thousand for Q1 2026, up from $447 thousand for Q1 2025. - Service and loan fee income was $912 thousand for Q1 2026, up from $864 thousand for Q1 2025. - Gain on sale of SBA loans held for sale, net, was $427 thousand for Q1 2026, significantly up from $139 thousand for Q1 2025. - Gain on sale of mortgage loans, net, was $500 thousand for Q1 2026, significantly up from $168 thousand for Q1 2025. - BOLI income was $217 thousand for Q1 2026, up from $151 thousand for Q1 2025. - Net security losses were - $82 thousand for Q1 2026, compared to - $49 thousand for Q1 2025. - Other income was $413 thousand for Q1 2026, up from $381 thousand for Q1 2025. #### Operating Costs (Noninterest Expense) - Total noninterest expense increased by 11.6% to $14.071 million for the three months ended March 31, 2026, from $12.611 million in the prior year’s first quarter. - Compensation and benefits were $8.673 million for Q1 2026, up from $7.902 million for Q1 2025. - Processing and communications expenses were $1.146 million for Q1 2026, up from $986 thousand for Q1 2025. - Occupancy expenses were $987 thousand for Q1 2026, up from $880 thousand for Q1 2025. - Furniture and equipment expenses were $715 thousand for Q1 2026, down from $746 thousand for Q1 2025. - Professional services expenses were $488 thousand for Q1 2026, up from $364 thousand for Q1 2025. - Advertising expenses were $393 thousand for Q1 2026, up from $391 thousand for Q1 2025. - Loan related expenses were $473 thousand for Q1 2026, significantly up from $46 thousand for Q1 2025. - Deposit insurance expenses were $300 thousand for Q1 2026, up from $241 thousand for Q1 2025. - Director fees were $260 thousand for Q1 2026, down from $495 thousand for Q1 2025. - Other expenses were $636 thousand for Q1 2026, up from $560 thousand for Q1 2025. #### Cash Flow - Net cash provided by operating activities was $14.922 million for the three months ended March 31, 2026, compared to $17.854 million for the same period in 2025. - Net cash used in investing activities was - $47.519 million for the three months ended March 31, 2026, compared to - $82.766 million for the same period in 2025. - Net cash provided by financing activities was $45.238 million for the three months ended March 31, 2026, compared to $96.067 million for the same period in 2025. - The increase in cash and cash equivalents was $12.641 million for the three months ended March 31, 2026, compared to $31.155 million for the same period in 2025. #### Unique Metrics and Financial Condition - Total assets increased by $60.7 million (2.0%) to $3.027 billion at March 31, 2026, from $2.967 billion at December 31, 2025. - Total shareholders’ equity increased by $12.5 million to $358.095 million at March 31, 2026, from $345.631 million at December 31, 2025. - Total loans increased by $56.9 million (2.2%) to $2.602 billion at March 31, 2026, from $2.545 billion at December 31, 2025. - Commercial loans were $1.559 billion at March 31, 2026, an increase of $41.1 million from December 31, 2025. - Commercial construction loans were $159.2 million at March 31, 2026, an increase of $12.0 million from December 31, 2025. - Residential construction loans were $83.9 million at March 31, 2026, an increase of $10.6 million from December 31, 2025. - Loans held for sale were $12.557 million at March 31, 2026, an increase of $3.1 million from December 31, 2025. - Consumer loans were $85.614 million at March 31, 2026, an increase of $0.4 million from December 31, 2025. - Residential mortgage loans were $668.739 million at March 31, 2026, a decrease of $8.5 million from December 31, 2025. - SBA loans held for investment were $32.499 million at March 31, 2026, a decrease of $1.8 million from December 31, 2025. - The yield on the overall loan portfolio increased by 2 basis points to 6.72% for the three months ended March 31, 2026, compared to 6.70% for the same period in the prior year. - Nonaccrual loans totaled $30.6 million at March 31, 2026, an increase of $0.8 million from $29.8 million at December 31, 2025. - Potential problem loans were $7.8 million at March 31, 2026, a decrease of $3.7 million from $11.5 million at December 31, 2025. - Allowance for Credit Losses (ACL) on loans totaled $33.4 million at March 31, 2026, compared to $32.3 million at December 31, 2025. - The allowance to total loan ratio was 1.28% at March 31, 2026, compared to 1.27% at December 31, 2025. - Net charge-offs amounted to - $31 thousand for the three months ended March 31, 2026, compared to - $0.5 million for the same period in 2025. - The commitment reserve for unfunded loan commitments totaled $0.7 million at March 31, 2026, and December 31, 2025. - Total deposits increased by $55.1 million to $2.379 billion at March 31, 2026, from $2.324 billion at December 31, 2025. - Savings deposits increased by $47.7 million. - Time deposits increased by $16.4 million. - Interest-bearing demand deposits increased by $9.0 million. - Brokered deposits decreased by $3.6 million. - Noninterest-bearing demand deposits decreased by $14.4 million. - Uninsured or uncollateralized deposits were 21.6% of total deposits at March 31, 2026. - Borrowed funds and subordinated debentures totaled $258.584 million at March 31, 2026, a decrease from $266.084 million at December 31, 2025. - At March 31, 2026, Unity Bancorp, Inc. had $108.5 million of additional credit available at the FHLB, $282.2 million at the FRB, and $20.0 million from other sources. - **Regulatory Capital (Company Consolidated - March 31, 2026):** - Total Risk-Based Capital Ratio: 16.16% (Actual) vs. 8.00% (Required) vs. 10.00% (Well Capitalized). - Common Equity Tier 1 (CET1) Capital Ratio: 14.50% (Actual) vs. 4.50% (Required) vs. 6.50% (Well Capitalized). - Tier 1 Capital Ratio (Risk-Weighted): 14.91% (Actual) vs. 6.00% (Required) vs. 8.00% (Well Capitalized). - Tier 1 Capital Ratio (Average Total Assets): 12.93% (Actual) vs. 4.00% (Required) vs. 5.00% (Well Capitalized). - **Regulatory Capital (Bank - March 31, 2026):** - Total Risk-Based Capital Ratio: 15.76% (Actual) vs. 8.00% (Required) vs. 10.00% (Well Capitalized). - Common Equity Tier 1 (CET1) Capital Ratio: 14.51% (Actual) vs. 4.50% (Required) vs. 6.50% (Well Capitalized). - Tier 1 Capital Ratio (Risk-Weighted): 14.51% (Actual) vs. 6.00% (Required) vs. 8.00% (Well Capitalized). - Tier 1 Capital Ratio (Average Total Assets): 12.62% (Actual) vs. 4.00% (Required) vs. 5.00% (Well Capitalized). #### Future Outlook and Strategy Unity Bancorp, Inc. intends to evaluate tax credit opportunities on an ongoing basis, subject to market availability and regulatory considerations. 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