About Unity Bancorp

Unity Bancorp, Inc. operates as the bank holding company for Unity Bank that provides various commercial banking products and services. The bank provides a wide range of business and consumer financial services through its main office in Clinton, New Jersey and additional New Jersey branches located in Edison, Emerson, Flemington, Highland Park, Lakewood, Linden, Middlesex, North Plainfield, Phillipsburg, Scotch Plains, Somerset, Somerville, South Plainfield, Union, Washington and Whitehouse. In addition, the bank has Pennsylvania branches located in Bethlehem and Forks Township. The bank’s primary service area encompasses the Route 22/Route 78 corridors between the Bethlehem, Pennsylvania office and its Linden, New Jersey branch, as well as Bergen County and Ocean County, New Jersey. The company, through the bank, conducts a traditional and community-oriented commercial banking business and offers services, including personal and business checking accounts, time deposits, money market accounts and savings accounts, typical of a community banking business. The company structures its specific services and charges in a manner designed to attract the business of the small and medium sized business and professional community, as well as that of individuals residing, working and shopping in its service area. The company engages in a wide range of lending activities and offers commercial, Small Business Administration (SBA), consumer, mortgage, home equity and personal loans. Service Areas The company’s primary service area is defined as the neighborhoods served by the bank’s offices. The bank’s main office, located in Clinton, NJ, in combination with its Flemington and Whitehouse offices, serves the greater area of Hunterdon County. The bank’s North Plainfield, Somerset and Somerville offices serve those communities located in the northern, eastern and central parts of Somerset County and the southernmost communities of Union County. The bank’s Scotch Plains, Linden and Union offices serve most of the communities in Union County and the southwestern communities of Essex County. The offices in Middlesex, South Plainfield, Highland Park and Edison extend the company’s service area into Middlesex County. The bank’s Phillipsburg and Washington offices serve Warren County. The bank’s Emerson office serves Bergen County. The bank’s Lakewood office serves Ocean County. The bank’s Forks Township and Bethlehem offices serve Northampton County, Pennsylvania. 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, residential mortgage, consumer and residential construction loans. 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. 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 real estate related loans. Residential mortgage loans consist of loans secured by 1 to 4 family residential properties. Residential mortgage loans maintained in portfolio are generally to individuals that do not qualify for conventional financing. 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 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 the personal property. Residential construction loans consist of short-term loans for the purpose of funding the costs of building a home. The majority of the company’s loans are secured by real estate. Deposits Deposits, which include noninterest-bearing demand deposits, interest-bearing demand deposits, savings deposits and time deposits, are the primary source of the company’s funds. The company offers a variety of products designed to attract and retain customers, with primary focus on building and expanding relationships. The company continues to focus on establishing a comprehensive relationship with business borrowers, seeking deposits, as well as lending relationships. Securities As of December 31, 2022, the company’s securities included U.S. government sponsored entities; state and political subdivisions; residential mortgage-backed securities; and corporate and other securities. Supervision and Regulation 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 Board of Governors of the Federal Reserve system. 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 Dodd-Frank Act also imposes new obligations on originators of residential mortgage loans, such as the bank. History Unity Bancorp, Inc. was founded in 1991. The company was incorporated in 1991.