Unity Bancorp, Inc. · NASDAQ:UNTY
Unity Bancorp — Shareholder Meeting (April 2014)
27 slides from Unity Bancorp's shareholder meeting presentation, Apr 23, 2014
Slide 1: 2014 Shareholders' Meeting
2014 Shareholders’ Meeting April 24, 2014 & Uni BANcoRP — >
Slide 2: Accomplishments in 2013
Unit Accomplishments in 2013 Total Assets - 12.4% increase Total Loans ~ 15.6% increase + 20.5% increasein commercial loans + 37.88 increasein mortgage loans Noninterest-bearing deposits up 18.9% Reported earnings of $4.1 million to common stockholders, a 56% increase over prior year Diluted EPS of
Slide 3: Unity's 2013 Highlights
Unity’s 2013 Highlights . Repaid all CPP funds (TARP) and terminated the related warrants * Record Commercial Loan growth * Improved credit quality resulted in lower loan loss provisions * Significant growth in residential mortgage originations * Continued deposit product mix improvement due to grow
Slide 4: Strategic Goals
Strategic Goals + To grow our business relationships by being a responsive bank, providing excellent service with flexible terms and conditions - 10% loan growth + Expand the Mortgage Division by growing list of referring real estate agents - Target 15% growth rate in purchased transactions + Expans
Slide 5: Bank Franchise
Slide 6: Attractive Market Area
Attractive MarketArea_ High nousshoi income in out market counties restive tothe State of New Jeragy andthe ‘tenuise mesine ‘State of Naw Jersey ranks 2" in thenation in mation household nome, 4” in per capita ‘income, and 2 in popuation density ‘itn rezpeotte masian hovethol income, Hunterdon Count
Slide 7: Recent Financial Performance
Recent Financial Performance a
Slide 8: Key Bank Ratios
Key Bank Ratios Return on average assets Net interest margin a
Slide 9: Summary Balance Sheet
Summary Balance Sheet (dollars in itions) 2013Y 2012Y 2011¥ Assets $921 $820 $811 Total Loans 679-587 593 Deposits 739 «649644 Equity 57 78 74 a
Slide 10: Loan Mix
Loan Mix (dollars in milions) daa a
Slide 11: Commercial and SBA Loan Area
Slide 12: Mortgage Loan Originations
Mortgage Loan Originations Mortgage Growth
Slide 13: Asset Quality Continues to Improve
Asset Quality Continues to Improve NPLs/ Loans nm ithiii ——— 2 oF 8 Zz 6th ft
Slide 14: Asset Quality
Asset Quality {dollars in thousands) + 175% decine in non-performing sets tom 1231/12 26.3% gazing in OREO fom 1231/12 ‘12.8% decine in nonperforming loans from 12/3/12 Nonperforming Assets sszes)
Slide 15: Year Deposit Trend
5 Year Deposit Trend {dollars in thousands) Neniirestoesing conan oepste soles smack sms smeresoeag comand oepste mow toss ares uss songs mest 7s aes mats es “at oe eepoene a ee ‘uate cps wore sims wes sis Sa ‘al cepste a cost ot rete cnet pe ee ee
Slide 16: Summary Income Statement and Profitability
Summary Income Statement and Profitability {dollars in ilions) 2013 2012¥ Net interestincome S274 S274 Provision for Loan Losses 24 40 Noninterestincome 668 73 NoninterestExpense 24.0 243 Net Income 64 42 Net Incometo Stockholders 44 26 Return on Average Assets 0.61% 0.83% Return on Average Equity 7
Slide 17: Net Interest Income & Net Interest Margin
Net Interest Income & Net Interest Margin {dollars in mitions) + Despite the intrest rate environment nd minimal balanoe chest grouth we have focused on (pouing revenue and potactng heat marestoargn| Net Interest Income and Net Interest Margin meen 370% 407%
Slide 18: Impact of Borrowings
Impact of Borrowings (dollars in thousands, except ratios) 10,000.00 3.700% 4777018 $370 $310,000.09 4.025% wn2201 308 10,000.00 4.120% spisa0i6 33 $10,000.00 4.208% 452017 321 310,000.00 4.234% arozo17 ee $10,000.00 3.337% spe0c017 34 315,000.00 3.670%. 228208 S651 378,000.00 3 885% as ‘Anqual expe
Slide 19: Strong Levels of Noninterest Income
Strong Levels of Noninterest Income {dollars in itions) Noninterest Income (excludes gains losses] on securities) —Noninerast income / Revenue
Slide 20: Noninterest Income
Noninterest Income {dollars in thousands) 12/31/2013] 12/31/2012, Branch fee income $1505 $ 1,528 Service and loan fee income 1,370 4,252 Gain on sale of SBA loans HFS 628 588 Gain on sale of mortgage loans 1,650 2.274 BOLI income 347 296 Net security gains 390 573 (Other income 4 7 Total S 6604 $ 7
Slide 21: Noninterest Expense Controls
Noninterest Expense Controls Noninterest Expense
Slide 22: Noninterest Expense
Noninterest Expense (dollars in thousands) ‘Compensation and benefits Occupancy Processing and communications Furniture and equipment Professional services Loan callection costs ‘OREOexpenses Deposit insurance Advertising Other expenses Total 12/31/2013] 12/ $12,251 $12,560 2871 2,722 2,309 2,180 14
Slide 23: Profitability Progression
Profitability Progression
Slide 24: Tangible Book Value Per Share
Tangible Book Value Per Share
Slide 25: Capital Ratios
Capital Ratios Leverage Ratio 12.00% ms Unity 11.00% lm FDIC-Insured Commercial Banks 10.00% 9.00% EE Unity with impact of $5 mil capital 8.00% raise a 2008 20102011 2012 2018 ‘Tier 1 Risk-Based Capital “Total Risk-Based Capital Ratio Ratio 17.00% 18.00% 15.00% 16.00% 13.00% 14.00% 11.00% 12.00% 9.0
Slide 26: Compelling Investment Highlights
Compelling Investment Highlights Improving bankfundamentals Positioned for economic rebound
Slide 27: Data sources
“The previous slides contained data from the following sources: ‘¢ FDIC-Insured Commercial Banks. “@ Obtained from FDIC gov Quarterly Banking Profile SNL