Unity Bancorp, Inc. · NASDAQ:UNTY
Unity Bancorp — Investor Presentation (January 2020)
21 slides from Unity Bancorp's investor presentation, Jan 29, 2020
Slide 1: Unity Bancorp Inc
& Unity BANCORP INC 12/31/19 NASDAQ: UNTY
Slide 2: Forward-Looking Statements
Forward-Looking Statements 7 This presentation may contain forward-looking statements with respectto Unity Bancorp’s financial condition, results of operations and business. Do not unduly rely on forward-looking statements. Forward- looking statements can be identified by the use of words such as “m
Slide 3: Company Snapshot
Company Snapshot « Founded September 16, 1991 « Headquartered in Clinton, New Jersey « Approximately $1.7 billion in assets and $1.3 billion in deposits « Unity Bank provides financial services to retail, corporate and small business customers through its 19 retail service offices located in Bergen,
Slide 4: Bank Franchise
Bank Franchise 7 nity Bank Branch Locations 1 | Forks Township, PA 2 | Phillipsburg, NJ 3 | Washington, NJ 4 | Clinton, NU 5 | Flemington, NJ 6 | Whitehouse, NJ Te Somerset, NJ 8 North Plainfield, NJ 9 | Middlesex, NJ 10 | Highland Park, NJ 11 | Edison, NJ 12 | South Plainfield, NJ 13 | Scotch Plain
Slide 5: New Jersey Overview
New Jersey Overview y Located in the heart of the U.S. Northeast Population estimate of 8.9 million people (Cuan * Median household income is over $76 + Gives companies access to one of the thousand per year ~ $14 thousand more than most concentrated and affluent the national median in household inc
Slide 6: Scarcity Value of Community Banks in New Jersey
Scarcity Value of Community Banks in New Jersey « Unity Bank is one of 22 community banks in New Jersey having less than $3.0 billion in assets * Unity bank has been deeply rooted in the communities we serve. * Our success is based on the personal relationships we have with our customers and employe
Slide 7: Recent Financial Performance
w Recent Financial Performance
Slide 8: Historical Growth
Historical Growth (dollars in millions) Total Assets Total Loans 2,000.0 — 1,600.0 — 1,800.0 xe 2 siziss ievo a as ; $1,425.6 = 1,200.0 $1,170.7 1.0000 | $973.4 800.0 600.0 400.0 200.0 21S 2016 = 2017S 018.2019 21S 2016 «2017S 2018-2019 Total DenOS, oa Total Equity ax 1,400.0 ‘Seth ene eS 1.2077 $12
Slide 9: Efficiency & Performance
Efficiency & Performance Efficiency Performance 16.00% 80.00% 20.00% 3.00% 17.10% 64.41% 15.86% 16.00% cele) le 12.00% + 60.00% 3 53.07% 52.00% 12.92: 7 3, 12.00% AF 1.80% 2 Q < 40.00% 3 2 g 2 2g 153% 158% z : B 8.00% 1.20% 2 2 117% 1.19% 4.00% 20.00% 0.96% 4.00% 0.60% 0.00% 0.00% 0.00% 0.00% 2015 ©
Slide 10: Asset Quality
Asset Quality Nonperforming Assets to Total Assets Net Charge-Offs to Average Loans 1.00% 0.20% 0.82% 0.15% 0.80% = 0.16% 0.60% 0.12% ran Ke 044% 0.43% / 0.09% 0.40% A— 0.08% p- 3% 0.0. 0.20% 0.04% ed 0.00% 0.00% 2015 ©2016 «= 2017.- «2018-2019 2015 2016 ©2017-2018 += 2019 Allowance for Loan Losses
Slide 11: Summary Income Statement and Profitability
Summary Income Statement and Profitability (dollars in millions) |Net Interest Income IS 53.7 1$ 57.6 Provision for Loan Losses 24 21 |Noninterest Income oF 96 |Noninterest Expense 33.4 34.7 Provision for Income Taxes 5.4 67 |Net Income IS 21.9 |$ 23.7 Diluted Earnings Per Share IS 2.01 iS 2.14 |Ret
Slide 12: Net Interest Income & Net Interest Margin
(dollars in millions) Net Interest Income & Net Interest Margin ¥ $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 S- 2015 2016 2017 2018 2019 tgaaNet Interest Income =i Net Interest Margin
Slide 13: Noninterest Income
Noninterest Income (dollars in thousands) & Branch fee income $ 1,519]$ Service and loan fee income 2,130 Gain on sale of SBA loans held for sale, net 1,680 Gain on sale of mortgage loans, net 1,719 BOLI income 975 Net security (losses) gains (199) Other income 1,207 1,502 1,965 909 2,090 588 373 2,
Slide 14: Noninterest Expense
Noninterest Expense (dollars in millions) $50.00 3.00% 2.69% $45.00 a ee ae 44% 2.37% $40.00 ass 2 a ee $35.00 3.00% $30.00 $25.00 $20.00 $15.00 1.00% $10.00 $5.00 s- 0.00% 2015 2016 2017 2018 2019 ssmiNoninterest Expense =tit-Noninterest Expense/Average Assets
Slide 15: Noninterest Expense
Noninterest Expense (dollars in thousands) Compensation and benefits $ 20,666 Occupancy 2,650 Processing and communications 2,788 2,924 Furniture and equipment 2,348 2,894 Professional services 934 1,061 Loan collection & OREO (recoveries) expenses (361) 41 Other loan expenses 208 272 Deposit insura
Slide 16: Profitability Progression
Profitability Progression $2.50 $2.00 $1.50 $1.00 $0.50 a 0) $1.38 $1.36 2015 2016 2017 2018 2019 Effect of nonrecurring gain on repurchase of subordinated debenture @ Efect of Tax Cut and Jobs Act. 2017 Diluted Eaming per Share would have been $1.36, net of the $1.7 million deferred tax asset adjus
Slide 17: Tangible Book Value Per Share
Tangible Book Value Per Share @ (Non-GAAP) $16.00 $14.00 $12.00 $10.00 $1000, $8.00 $6.00 $4.00 $2.00 s- 2015 2016 2017 2018 2019 *Capital Raise of $15 million at a weighted average price per share of $14.04; net increase of $14.4 million after expenses.
Slide 18: Market Price
Market Price y $25.00 $20.00 $15.00 $10.00 $5.00 i $- T , T , 1 2015 2016 2017 2018 2019
Slide 19: Stock (UNTY) Ownership
Stock (UNTY) Ownership y Share Ownership by Type Additional Notes: 10,869,425 Outstanding Shares as of 11/12/2019 Insider ownership includes 1,711,019 shares (15.7%) held under Dallas Financial Holdings 2,137,939 shares (19.7%) held by top 3 institutions- Banc Funds Co, Endicott Mgmt, and Wellington
Slide 20: Compelling Investment Highlights
Compelling Investment Highlights Sf Knowledgeable and experienced management team VY Attractive branch franchise 4 Insider ownership Diversity of loan products
Slide 21: The previous slides contained data from the following sources
The previous slides contained data from the following sources: ¢ FDIC-Insured Commercial Banks: Obtained from FDIC. gov Quarterly Banking Profile SNL Census.gov