Unity Bancorp, Inc. · NASDAQ:UNTY
Unity Bancorp — Shareholder Meeting (May 2005)
26 slides from Unity Bancorp's shareholder meeting presentation, May 26, 2005
Slide 1: 2005 Shareholders' Meeting
1 Shareh olders y
Slide 2: Performance Ratios
UNITY® BANGORP+INC Performance Ratios Qu Qi 2003 2004 3/31/2004 3/31/2005 Net Income $ 4,583 $ 5,330 $ 1,194 $ 1,310 Eamings Per Diluted Share $ 0.77 $ 0.87 $ 0.20 $ 0.21 Return on Assets 1.04% 1.10% 1.04% 1.03% Return on Common Equity 16.05% 16.32% 15.32% 14.63% Efficiency Ratio 66.59% 64.51% 68.31
Slide 3: 2004 Highlights
UNITY® BANCORP+INC 2004 Highlights > Unity recorded record profits - $5.3 million, ROE 16.32% > 9% consecutive year of SBA Awards = #1 lender among NJ mid-size banks = 34% largest SBA lender in the United States = Silver award — 3*¢ largest SBA lender in NJ = Bronze award from New York City = Long I
Slide 4: Strategic Objectives
UNITY® BANCORP+INC Strategic Objectives >» Consistently outperform our peers Return on Equity >» Focus on Deposit & Loan Growth / Margin Management > Continue to be a leader in SBA lending >» Grow our branch network at 1 to 3 branches per year
Slide 5: Unity Footprint
UNITY® ANCGORP+IN¢ Unity Footprint w ane —tcintegdon eer Sy Marty oa Fat(C) 2000-2064 6 enn tes F810
Slide 6: Total Assets
Total Assets % ae In millions ew ¢€ 12/01 12/02 12/03 12/04 305
Slide 7: Total Loans
Total Loans Jn millions nN = 12/01 12/02 12/03 1204 03/05
Slide 8: Loans by Type
UNITY® BANCORP+INC Loans by Type Jn millions 207.8 214.7 12/01 12/02 12/03 12/04 3/05 -@ Commercial -+- Retail -- SBA
Slide 9: Allowance for Loan Losses
UNI TY & Lay Lig Assets BANCORP+IN¢ Allowance for Loan Losses Jn millions $6.5 $5.5 $4.5 $3.5 $2.5 $15 12/01 12/02 12/03 12/04 305 NPA: ALL
Slide 10: Credit Quality and Net Charge-Offs
UNI TY: & Credit Quality & BANCORP+IN¢ Net Charge-Offs 2.00% 1.68% 1.50% | 1.26% 1.20% 1.19% 0.83% 1.00% 0.48% 0.50% 0.33% 0.23% 0.11% ou6 0.00% | + { 12/01 12/02 12/03 12/04 3/05 —+ Non-performing Assets to Loans and OREO —+ Net Charge-offs to Average Loans
Slide 11: Total Deposits
Cu UNITY® Total Deposits Jn millions D se cal RAL nam 12/03 12/04 305
Slide 12: Deposits
UNITY® BANCORP¢?INC Deposits In millions $180.0 16822, $150.0 $120.0 $90.0 $60.0 $30.0 $0.0 | t + + + 1 12/01 12/02 12/03 12/04 3/05 —-Non-Int DDA —— Opportunity Checking & Savings
Slide 13: New Product: Opportunity Savings
UN TY & New Product: BANGORP+IN¢ Opportunity Savings
Slide 14: CD Promotion
UNITY® BANCORP¢?INC CD Promotion S Get a Digital Camera & Higher Yield CD!
Slide 15: CD Promotion
CD Promotion
Slide 16: High Yield CDs
UNITY® BANGORP+INC High Yield CDs OLD-FASHIONED BANKING. COOL. bt
Slide 17: Shareholders' Equity
Shareholders’ Equity Jn millions 2 & 12/01 1202 12/03 12/04 3105
Slide 18: Capital Ratios
Capital Ratios 113.0000 12.32% 12.53% 12.39% 12.3304 —+ + ° 7 1027886 * 11.00% Ss = 11.05% 11.23% 11-149 11.08% 9.00% | 9 <0 3.38% 92.02% 8.9696 7.00% 6.6296 5.00% | 1 ; 1 1 1 2/01 12/02 12/03 12/04 3/05 — Leverage —=- Tier I -+- Total Capital
Slide 19: Statement of Operations
UNITY BANCORP+ING Statement of Operations Jn thousands Qu Qu 2002 2003 2004 3/31/2004 3/31/2005 Net interest income $ 15,723 $17,867 $19,158 $4,618 $5,265 Provision for loan losses 2,350 1,600 1175 250 300 Nom-interest income 7,991 8,343 7,629 1881 1,791 Nom-interest expense 15,544 17,329 17,230 4,4
Slide 20: Net Interest Income
UNITY® BANCORP+INC Net Interest Income Jn millions 12902 12903 1204 38104 3/3105
Slide 21: Net Interest Margin
BANCORP+IN¢ Net Interest Margin 5.50% 5.00% 4.50% 4.00% 3.50% 3.00% 5.75% 4.30% 9% 3.59% Sone: 12/31/02 12/31/03 12/31/04 3105 —-Net Interest Spread —-Margin -—Prime
Slide 22: Non-interest Income
BANCORP+ING Non-interest Income Jn thousands Qu Qi 12/3102 _ 12/31/03 12/31/04 | 03/31/04 _03/31/05 Deposit Sve Charges $ 1547 $ 1977 $ 1618 $ 406 $ 430 Loan and servicing fees 1,497 1,936 1831 471 536 Sale of SBA loans 3,627 3,075 S217: 738 460 Other income 1,092 1,150 887 213 312 Gain on sale of s
Slide 23: Non-interest Expense
UNITY® BANGORP+ING Non-interest Expense Jn thousands Qi Qi 12/31/02 12/313 12/31/04 03/31/04 03/3105 Comp. and benefits $ 7,498 $ 8301 $ 8,435 $2239 $ 2,397 Occupancy 1,671 1,884 2,085 529 593 Processing and comm. 1,139 1,120 993: 253 246 Item Processing 1,097 980 926 221 220 Furniture and equipment
Slide 24: Stock Price
BANCORP+INC Stock Price $14 12.80 $12 $10 4.11 12/31/00 12/31/02 12/31/03 12/31/04 31/05 —¢ Market Price -¢- Book Value
Slide 25: Stock Price
UNITY® BANCORP*ING Stock Price 5.0% sisu2o02—eranv2002 2/6/2008 7ev2o03 ‘erer2008 S204 yorzi2004 31842008 TY —aspaa \k Index Sap 500 S&P Bank Index
Slide 26: Searchable text section of graphics shown above
Searchable text section of graphics shown above [ LOG O] [GRAPHIC] 2005 Shareholders’ Meeting [LOGO] Per formance Ratios Q1 Q1 2003 2004 3/31/2004 3/31/2005 Net Income $ 4,583 $ 5,330 $ 1,194 $ 1,310 Earnings Per Diluted Share $ 0.77 $ 0.87 $ 0.20 $ 0.21 Return on Assets 1.04 % 1.10 % 1.04 % 1.03 %