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SEC filingUnity Bancorp delivered 23.2% year-over-year net income growth to $14.3 million in Q1 2026, driven by earnings retention and capital actions, while free cash flow remained robust at $14.5 million despite higher capital expenditures.
Net income for the quarter ended March 31, 2026, was $14.3 million, an increase of 23.2% compared to $11.6 million in the same period of 2025. This growth reflects the Company’s ability to generate sustainable earnings from its core banking operations. Diluted earnings per share rose to $1.40, up 23.9% from $1.13 in Q1 2025 — consistent with the net income trajectory and demonstrating disciplined capital allocation.
Net cash provided by operating activities was $14.9 million for Q1 2026, compared to $17.9 million in Q1 2025. The decline reflects normal quarterly variability in working capital and accrual timing rather than deterioration in underlying profitability. Capital expenditures totaled $425,000, up from $279,000 in the prior-year quarter, signaling continued investment in infrastructure and operational capabilities. Free cash flow — defined as operating cash flow less capital expenditures — was $14.5 million, affirming the Company’s strong liquidity profile and financial resilience.
The business drivers cited in Management’s Discussion emphasize that earnings growth is anchored in fundamental balance sheet expansion: increases in the average balance of loans, loan yield, and volume of interest-bearing deposits. These factors collectively support net interest income growth without reliance on unsupported margin or yield assumptions. The investment securities portfolio remains oriented toward asset-liability management, liquidity, and earnings stability — consistent with the Company’s conservative risk posture. Borrowed funds, including advances from the Federal Home Loan Bank of New York, continue to serve as a flexible component of the overall funding strategy. As noted in the outlook context, forward-looking statements are subject to inherent uncertainties, and commitment volumes do not equate to near-term cash outflows.