UNITY BANCORP INC /NJ/

Except as set forth below, there have been no material changes to the risks inherent in our business from those described under the heading “Risk Factors” within the Company’s Form 10-K for the year ended December 31, 2025.

Risks related to artificial intelligence used by us, our employees, service providers and other third parties could have significant, negative impacts on our business, result in the disclosure of confidential information, and create significant financial and legal exposure for us.

The Company also continues to monitor risks associated with the rapid development and adoption of artificial intelligence (“AI”), including generative and autonomous or “agentic” AI. The use of AI by the Company, its employees, customers, service providers or other third parties could increase operational, cybersecurity, privacy, compliance, fraud and reputational risks. AI may produce inaccurate or unreliable outputs, take unintended actions, expose confidential or customer information, or be used by malicious actors to facilitate fraud, social engineering, identity theft or cyberattacks. The increasing sophistication of AI-generated communications may also make it more difficult to authenticate transaction instructions or customer identities. The legal and regulatory framework governing AI continues to evolve and could require additional investments in governance, controls, information security and compliance. Given the rapidly evolving nature of AI technologies, the Company may not be able to identify or mitigate all associated risks, which could result in financial loss, operational disruption, regulatory scrutiny or reputational harm.