Unity Bancorp, Inc. · NASDAQ:UNTY
Unity Bancorp — Shareholder Meeting (April 2012)
19 slides from Unity Bancorp's shareholder meeting presentation, Apr 26, 2012
Slide 1: 2012 Shareholders' Meeting
2012 Shareholders’ Meeting April 26, 2012
Slide 2: 2011 accomplishments: improved earnings, expanded net interest margin
Improved earnings – 37% increase Expanded net interest margin – from 3.67% to 3.76% Strengthened capital ratios Residential loan origination up 20% Noninterest-bearing deposits up 11% Strategic reduction in SBA loans and time deposits
Slide 3: 2011 challenges: elevated provisions and nonperforming assets
Elevated provisions for loan losses Challenging rate environment Weak loan demand Elevated levels of nonperforming assets Elevated loan collection expenses
Slide 4: Strategic focus: relationship-based business banking
Focus on relationship-based business banking Reaffirm lending footprint Maintain net interest margin Stabilize credit quality Effective cost control
Slide 5: Branch footprint in New Jersey and Pennsylvania
New Jersey Hunterdon County Clinton Flemington Whitehouse Middlesex County Edison Highland Park Middlesex South Plainfield Somerset County North Plainfield Union/Essex County Linden Scotch Plains Union Warren County Phillipsburg Washington Pennsylvania Northampton County Forks Township William Penn
Slide 6: New branch opening
Branch opened 3/19/2012 Ribbon Cutting 3/22/2012 Networking Night j 3/28/2012
Slide 7: Branch closures, mortgage division, credit card and banking enhancements
Closure of underperforming branches Expanded residential mortgage division Unity Bank VISA Credit Card Program Enhanced Customer Call Center phone system Upgrade of ATM machines Enhanced electronic banking products
Slide 8: Marketing campaigns
Marketing Campaigns focused on strengthening brand; emphasizing the local theme, community involvement, and the Bank’s role as champion of Small Businesses Advertising reflects increased demand for home mortgages and alternative to big banks’ fees Campaign used 20th Anniversary to advertise small bu
Slide 9: Performance versus public banks peer group
For the year ended 12/31/2011 Unity Public Banks $300 million - $2.5 billion Return on average assets 0.31% 0.32% Return on average equity 1.90% 2.44% Net interest margin 3.76% 3.69% Total nonperforming assets to total assets 3.18% 3.80% Net charge-offs to average loans 0.79% 1.01%
Slide 10: Income Statement
Income Statement (dollars in thousands) | For the years ended 2011 | 2010 Net interest income $ 28,972 | $ 30,000 Provision for loan losses (6,800) (7,250) Other noninterest income 5,661 5,069 Noninterest expense (24,518) (24,990) Net income before taxes [ aeis) 2eee] Provision for income taxes ~(76
Slide 11: Prime Rate
Prime Rate 8.25% 7.25% 3.25% 3.25% 3.25%
Slide 12: Total Assets
Total Assets (dollars in millions) $1,000 $950 $900 $850 $800 $750 $700 e 2007 2008 2009 2010 2011
Slide 13: Total Loans Outstanding
Total Loans Outstanding (dollars in millions) $700 $650 $600 $550 $500 $450 $400 >.” 2008 2009 2010 2011
Slide 14: Nonperforming assets by category
12/31/2011 12/31/2010 Category $ Value # of Loans $ Value # of Loans SBA 7(a) 5,859 75 8,162 76 SBA 504 2,086 3 2,714 4 Commercial 8,519 22 5,452 19 Residential mortgage 6,037 12 5,085 16 Consumer 268 3 249 3 OREO 3,032 10 2,346 7 Total 25,801 125 24,008 125 Selected Ratios 12/31/2011 12/31/2010 Non
Slide 15: Total Deposits
$800 $750 $700 $650 $600 $550 $500 Total Deposits (dollars in millions) 2007 2008 2009 2010 2011
Slide 16: Total Noninterest-bearing Deposits
Total Noninterest-bearing Deposits (dollars in millions) $90 $80 | $70 | a ia $60 | a ) 2007 2008 2009 2010 2011
Slide 17: Unity Bancorp, Inc. vs FDIC-Insured Commercial Banks
Unity Bancorp, Inc. FDIC-Insured Commercial Banks
Slide 18: Investment highlights
Discount to book Knowledgeable and experienced management team Attractive branch franchise Improving bank fundamentals Positioned for economic rebound Insider ownership
Slide 19: Data sources
The previous slides contained data from the following sources: FDIC-Insured Commercial Banks: Obtained from FDIC.gov Quarterly Banking Profile SNL