Unity Bancorp Raises Quarterly Dividend 6.25% to $0.17

Unity Bancorp, Inc. (NASDAQ: UNTY) increased its quarterly dividend to $0.17 per share from $0.16, a 6.25% rise. The shares traded ex-dividend on Sept. 3, 2026.

The new distribution equates to an annualized dividend of $0.68 per share. Based on a share price of $58.91, the forward annual yield is 1.16%.

The increase extends the Clinton, New Jersey-based bank holding company’s dividend-growth streak to 12 consecutive years. Unity previously reduced its dividend in 2013, making the subsequent record of annual increases relevant for investors assessing the consistency of its distributions.

Recent operating context

The higher payment follows a profitable first half for Unity, the parent company of Unity Bank. Unity reported second-quarter net income of $14.5 million, compared with $14.3 million in the preceding quarter. Net interest income—the principal earnings source for a traditional bank—rose to $31.8 million from $30.7 million, while net interest margin increased to 4.56%. Management attributed the improvement in net interest income primarily to the number of days in the quarter and higher yields on interest-earning assets. Unity Bancorp’s second-quarter earnings release

Chief Executive James A. Hughes said the quarter benefited from core operating performance, balanced loan and deposit growth, and the company’s capital and liquidity position. Unity’s regulatory filing identifies the company as a New Jersey bank holding company whose wholly owned subsidiary is Unity Bank. Unity Bancorp’s second-quarter Form 10-Q

Those results provide context for the board’s decision, though the dividend action itself does not guarantee that future payments will be maintained or increased. Bank dividends remain dependent on earnings, credit quality, capital requirements and board approval.

What it means for income investors

For shareholders, the increase adds $0.01 to each quarterly payment and lifts the annualized distribution to $0.68 per share. The 1.16% forward yield is modest relative to many income-focused equities, so the event is more notable for the continuation of Unity’s 12-year growth record than for current yield alone.

SmarterDividends assigns the payout a safety score of 80 out of 100, equivalent to an A grade. That assessment indicates relatively strong dividend safety under the publication’s methodology, while the 2013 cut remains part of the company’s longer-term distribution history.