Slide 1: Unity Bancorp (NASDAQ: UNTY)
& Unity BANCORP )AQ: UNTY ——>-
Slide 2: Forward-Looking Statements
Forward-Looking Statements —) ‘This presentation may contain forward-looking statements with respect toUntyancore's ‘inan€latcongiion, results of ope atone and Buzinesy Be nor unduly telyon fowars< Bok Should ie cogidanratee rege potential: contrus,“andapats below” ‘splans "expects. future,*intends
Slide 3: Company Snapshot
Company Snapshot Founded September 16, 1991 Headquarteredin Clinton, NewJersey Approximately $921 million in assets & $739 million in deposits Unity Bankprovides financial services to retail, corporate and small business customers through its 15 retail service offices locatedin Hunterdon, Middlesex,
Slide 4: Bank Franchise
Slide 5: Attractive Market Area
tive Market Area 7 High househol income in our market oounties relative tothe State of New Jersey andthe ‘atonnise median ‘State of Naw Jersey anks 2" in thenation in masian household income, 4 in per capta Income, and 2 in population density ‘itn rezpest te masian novsthoi income, Hunterdon County
Slide 6: Strategic Goals
Strategic Goals « To grow our business relationshipsby being a responsive bank, providing excellent service with flexble terms and conditions ~ 10% loan growth + Expand the Mortgage Division by growing ist of referring realestate agents - Target 15% growth rate n purchasedtransacions, «Expansion of
Slide 7: Core Values
Slide 8: James A. Hughes, CPA / Alan J. Bedner, Jr. CPA
James A. Hughes, CPA ‘Alan J. Bedner, Jr. CPA “Prasgent and Chief Executive Offer + Chiet Financial Officer “Joined the company in 2000 + Joined the company in 2001 “+ 28 years banking experience “18 years banking experience ‘+ Previously employed at Summit Bancorp ‘+ Previously employed at Summit B
Slide 9: Engaged Board of Directors
_Engaged Board of Directors David Dallas, Chairman of the Board, and Robert Dallas, Board Member, both founding members of the Bank + Average tenure of Board Members is 12.5 years + Diverse experience including financial industry, medical professionals, university professional and business ownership
Slide 10: Recent Financial Performance
Recent Financial Performance a
Slide 11: 2013 Highlights
2013 Highlights Repaid all CPP funds (TARP) and terminated the related warrants Record Commercial Loan growth Improved credit quality since December 31, 2011 resulted in lower loan loss provisions as well as reduced loan collection and OREO expenses Significant growth in residential mortgage origina
Slide 12: Summary Balance Sheet and Capital
Summary Balance Sheet and Capital (S in Millions) 2013Y 2012 2011 Assets $921 $820 sett Total Loans 679 587 593 Deposits 739 649 644, Equity 57 78 4 TCE Ratio 6.05% «6.83% += 6.48% Tier 1 Ratio 1074 = 1485 14.33 Total Capital Ratio 11.99 16.12 15.60
Slide 13: Summary Income Statement and Profitability
Summary Income Statement and Profitability (Sin Milions) 4Q13 4012 2013Y — 2012¥ Net interestincome S71 86.7 $274 $274 Provision for Loan Losses os og 24 40 Noninterestincome 18 20 66 73 NoninterestExpense 59 64 240 243 Net Income 13 12 64 42 Retumn onAverage Assets 0.87% 0.57% 0.61% 0.63% Retum onA
Slide 14: Profitability Progression
Profitability Progression Diluted Earnings per Share
Slide 15: Loan Mix
Slide 16: Commercial and SBA Loan Area
Commercialand SBA Loan Area
Slide 17: Asset Quality Continues to Improve
Asset Quality Continues to Improve NPLs/ Loans & Lid
Slide 18: 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 19: Deposit Trend
5 Year Deposit Trend (dollars in thousands)
Slide 20: Net Interest Income & Net Interest Margin
Net Interest Income & Net Interest Margin (dotars in mao) + Despite the intrest rate envionment nd minimal talanoe chest growth, we have focused on (pouing revenue and potactng heat marestoargn| Net Interest Income and Net Interest Margin meen 370% 407%
Slide 21: Strong Levels of Noninterest Income
Strong Levels of Noninterest Income {dollars in millions) Noninterest Income (excludes gains losses] on securities) —Noninerast income / Revenue
Slide 22: Mortgage Loan Originations
Mortgage Loan Originations (Gollars in tions) Mortgage Growth
Slide 23: Noninterest Expense Controls
Noninterest Expense Controls Noninterest Expense n=
Slide 24: Tangible Book Value Per Share
Tangible Book Value Per Share
Slide 25: Capital Ratios
Capital Ratios Leverage Ratio gm Unity Bancorp, Inc. 12.00% 1.00% FDIC-insured Commercial Foes 10.00% 9.00% 8.00% 7.00% 2009 2010 2011 2012 2013, El ne eer ‘Total Risk-Based Capital Ratio Ratio 17.00% 18.00% 15.00% A 13.00% tot 11.00% re 9.00% 10.00% 2009 2010 2011 2012 2013 2008 2010 201) 2012 2013
Slide 26: Investment Highlights
Compelling Investment Highlights Improving bankfundamentals Positioned for economic rebound