In short. In its 2025 annual report, Unity Bancorp Inc mentions AI in 9 passages. It says it is using AI now, for operations. It lists AI as a risk and explains how AI is controlled. Compared with banks of its size, it gives more detail than most.
In the 2025 annual reportThe yearly report a listed company files with the SEC, called a 10-K. It describes the business, its risks and its results.
Mentions AI
Yes
9 passages
Highest detail levelHow specific a passage is about AI at this bank. General: could be in any bank's report. Names an area: says where AI is used or how it is controlled. Concrete example: names a tool or vendor, gives a number, a date or a result.
Names an area
What it says
Sees AI as a risk; Standard wording or passing mention; Using AI now
Kinds of AI named
Generative AI, Machine learning
How AI is controlled
Model risk management, Vendor oversight
AI in its annual reports over time
What this shows
How many passages about AI each annual report contains, 2022 to 2025, by what they say.
What it means
2 passages in 2022, 9 passages in 2025.
How to read it
Each bar is a report year, split by what the passages say. Hover or tap a bar for the count.
Where it comes from
Banks' annual reports (10-K) filed with the SEC, up to 6 Oct 2026. How we did this
Passages about AI in Unity Bancorp Inc's annual reports, by report year.Show as a table
Report year
Using or planning AI
Explains how AI is controlled
Sees AI as a risk
Other mentions
2022
2022
2022
2022
2023
2023
2023
2023
2024
2024
2024
2024
2025
2025
2025
2025
Compared with banks of its size
What this shows
This bank's 2025 annual report next to all 221 banks of its size ($1B to $50B).
What it means
Its most specific passage is "Names an area"; for banks of its size the typical level is "General".
How to read it
Yes or no for this bank; the share of banks of the same size for comparison.
Where it comes from
Banks' annual reports (10-K) filed with the SEC, up to 6 Oct 2026. How we did this
In the 2025 report
This bank
Banks of its size
Using AI now
Yes
26 of 221 (12%)
Explains how AI is controlled
Yes
55 of 221 (25%)
Sees AI as a risk
Yes
184 of 221 (83%)
Mentions generative AI
Yes
112 of 221 (51%)
Mentions AI agents
No
18 of 221 (8%)
What changed from 2024
7 passages new in the 2025 report, 0 passages from the 2024 report no longer there. The most specific passage is more detailed than last year.
Every passage about AI
What this shows
All 15 passages about AI in this bank's annual reports, quarterly reports and earnings materials since 2023, newest first.
What it means
2 passages say the bank is using AI now.
How to read it
Highlighted words are the terms that matched. Labels show what each passage says. Follow the link to read it in the filing.
Where it comes from
Banks' annual reports (10-K), quarterly reports (10-Q) and earnings materials (8-K) filed with the SEC. How we did this
Annual report, report year 2025 filed 4 Mar 2026
Artificial Intelligence. State and federal regulatory agencies have begun adopting rules and guidelines regarding the use of artificial intelligence (“AI”) technologies in connection with the provision of financial services. For example, the CFPB and other federal bank regulatory agencies have provided guidance that creditors may be subject to adverse action notice requirements under the Equal Credit Opportunity Act even if they rely on algorithmic underwriting models. The New York State Department of Financial Services issued an industry letter on combating cybersecurity risks associated with AI. Additionally, on January 23, 2025, President Trump issued an executive order aimed at reducing barriers to AI innovation in the U.S. economy. The executive order requires relevant persons and bodies within the federal government to develop an AI action plan to carry out this objective and revokes an AI-related executive order issued in 2023 by President Biden, as well as all corresponding policies, regulations, orders, directives, and other actions taken in response to such order.
The Company’s ability to compete successfully in the future will depend on whether it can anticipate and respond to technological changes. Due to the rise of AI, technological advances are occurring in the industry at an unprecedented pace. To develop these and other new technologies and protect against cyber security threats, the Company will likely have to make additional capital investments. Although the Company continually invests in new technology, it cannot assure that it will have sufficient resources or access to the necessary proprietary technology to remain competitive in the future.
Our use of artificial intelligence, including generative artificial intelligence, may expose us to operational, regulatory, legal, and reputational risks that could adversely affect our business, financial condition, and results of operations.
Sees AI as a riskDetail: GeneralGenerative AINew this year
We use, and expect to continue to expand our use of, artificial intelligence and machine learning technologies, including generative artificial intelligence models, in our operations and through third-party vendors. These technologies are complex, rapidly evolving, and may not perform as intended. AI systems may produce inaccurate, biased, or unpredictable results, which could lead to flawed business decisions, customer harm, control failures, or violations of law or regulation, including consumer protection and fair lending requirements.
Using AI nowDetail: Names an areaMachine learningGenerative AIOperationsNew this year
The regulatory and supervisory framework governing the use of artificial intelligence in the banking industry is developing and remains uncertain. Banking regulators have increased scrutiny of AI-related practices, including governance, model risk management, explainability, data usage, and third-party oversight. New laws, regulations, or supervisory expectations could limit our ability to deploy AI technologies, require significant changes to our systems or processes, increase compliance costs, or result in supervisory actions, fines, or penalties if our use of AI is deemed noncompliant or unsafe.
The use of AI, including generative AI, may also increase cybersecurity, data privacy, and information security risks. AI systems may require access to sensitive customer or proprietary information, and any failure to adequately safeguard such data, prevent misuse, or comply with applicable privacy and data protection laws could result in regulatory enforcement actions, litigation, financial losses, and reputational harm.
Sees AI as a riskDetail: GeneralGenerative AINew this year
We also face risks from reliance on third-party vendors that develop or utilize AI technologies. These vendors may use proprietary or opaque models, limit our ability to validate or monitor AI-driven outcomes, or fail to maintain adequate controls. Disruptions, deficiencies, or misconduct by such vendors could adversely affect our operations, compliance posture, or customer relationships.
If we are unable to effectively manage the risks associated with artificial intelligence and emerging technologies, or if these technologies fail to operate as intended, our business, financial condition, and results of operations could be materially adversely affected.
The Company’s ability to compete successfully in the future will depend on whether it can anticipate and respond to technological changes. Due to the rise of AI, technological advances are occurring in the industry at an unprecedented pace. To develop these and other new technologies and protect against cyber security threats, the Company will likely have to make additional capital investments. Although the Company continually invests in new technology, it cannot assure that it will have sufficient resources or access to the necessary proprietary technology to remain competitive in the future.
The Company’s ability to compete successfully in the future will depend on whether it can anticipate and respond to technological changes. Due to the rise of AI, technological advances are occurring in the industry at an unprecedented pace. To develop these and other new technologies and protect against cyber security threats, the Company will likely have to make additional capital investments. Although the Company continually invests in new technology, it cannot assure that it will have sufficient resources or access to the necessary proprietary technology to remain competitive in the future.
In 2021, the Company enrolled in the “Upgrade Consumer Unsecured Loan Program” to purchase consumer unsecured loans. This loan product has a fixed rate, fully amortizing term for up to five years and a maximum loan amount of $50 thousand. Restrictions were placed on the loans purchased to limit the purchases to borrowers residing in New Jersey, southern New York, and eastern Pennsylvania and to limit purchases to borrowers with higher credit quality with a 700 FICO minimum. Upgrade services the loans on behalf of the Company. Upgrade is a financial technology company that utilizes artificial intelligence to underwrite personal loans and credit card installment loans to retail customers, in addition to credit monitoring and education tools.
Using AI nowDetail: Concrete exampleCredit and lendingUpgrade
1 passage in legal noticesThe forward-looking statements notice at the start or end of a filing. It often lists AI among many risks. It is never counted., not counted
Factors that might cause such a difference include, but are not limited to: (1) the potential impact of pandemics and other health emergencies and the government’s response thereto on our operations as well as those of our clients and on the economy generally and in our market area specifically; (2) competitive and technological pressures among financial institutions may increase significantly; (3) changes in the interest rate environment may reduce interest margins; (4) prepayment speeds, loan origination and sale volumes, charge-offs and credit loss provisions may vary substantially from period to period; (5) general economic conditions may be less favorable than expected; (6) political developments, wars or other hostilities may disrupt or increase volatility in securities markets or other economic conditions; (7) legislative or regulatory changes or actions may adversely affect the businesses in which Unity Bancorp, Inc. is engaged; (8) changes and trends in the securities markets may adversely impact Unity Bancorp, Inc.; (9) a delayed or incomplete resolution of regulatory issues could adversely impact us; (10) difficulties in integrating any businesses that we may acquire, which may increase our expenses and delay the achievement of any benefits that we may expect from such acquisitions; (11) the impact of reputation risk created by the developments discussed above on such matters as business generation and retention, funding and liquidity could be significant; and (12) the outcome of any future regulatory and legal investigations and proceedings may not be anticipated; and (13) risks associated with generative artificial intelligence technology. Further information on other factors that could affect the financial results of Unity Bancorp, Inc. are included in Item 1A of this Annual Report on Form 10-K and in Unity Bancorp, Inc.’s other filings with the Securities and Exchange Commission. These documents are available free of charge at the Commission’s website at http://www.sec.gov and/or from Unity Bancorp, Inc. Unity Bancorp, Inc. assumes no obligation to update forward-looking statements at any time.