Slide 1: 2011 Shareholders' Meeting
2011 Shareholders’ Meeting April 28", 2011 UNITY BANCORP, INC
Slide 2: Unity's Accomplishments
UNITY’S Accomplishments ! ® Despite this challenging environment, Unity’s performance in 2010 included the following accomplishments: v Strategic reduction in certain products v SBA loans down 11.50% v Time deposits down 38% v 14% Increase in non-interest bearing deposits v Net interest margin - 3.6
Slide 3: How the Economy Affected Unity
How the Economy Affected UNITY ® Unity’s 2010 results were affected by: v High provision for loan losses v Elevated level of past due accounts v Elevated level of collection costs v Elevated level of FDIC insurance v Weak loan demand v Low yielding investments
Slide 4: Unity's Strategic Direction
UNITY’S Strategic Direction ® Focus on relationship-based business banking ® Reaffirm lending footprint ® Improve net interest margin ® Stabilize credit quality ® Effective cost control ® Branch realignment
Slide 5: Unity's Branch Network
UNITY’S Branch Network New Jersey ® Hunterdon County v Clinton v Flemington v Whitehouse ® Middlesex County v Colonia v Edison v Highland Park v Middlesex v South Plainfield ® Somerset County v North Plainfield ® Union/Essex County v Linden v Scotch Plains v Springfield v Union ® Warren County v Phi
Slide 6: Unity's Recent and Future Highlights
UNITY’S Recent and Future Highlights ® Expand Residential Mortgage Division ® Streamlined Loan Payment Processing ® Online Banking Product ® Mobile Money Smart Phone Banking ® Digital Signature Cards & Document Storage ® New Unity Bank Credit Card Program ® In-house electronic check presentments ® E
Slide 7: eStatements
eStatements ® Over 2600 Accounts on eStatements ® Reduced Cost in paper & postage ® Convenient & Secure ® Environmentally Friendly ® View, download and print the last 15 months of statements
Slide 8: Unity's Marketing Initiatives
UNITY’S Marketing Initiatives
Slide 9: Ucare Charitable Giving Program
Ucare Charitable Giving Program ® Launched in April 2011 ® 25 Partners by Year-End
Slide 10: Key Bank Ratios
For the year ended 12/31/2010 Unity Public Companies $300 million - $2.5 billion Return on Average Assets 0.26% -0.13% Return on Average Equity 3.24% -5.25% Net Interest Margin 3.67% 3.71% Total Nonperforming Assets to Total Assets 2.93% 4.27% Net Charge-offs to Average Loans 1.05% 1.50% Key Bank Ra
Slide 11: Income Statement
Income Statement (dollars in thousands)
Slide 12: Net Interest Margin
Prime Rate 7.25% 8.25% 7.25% 3.25% 3.25% Net Interest Margin
Slide 13: Total Assets
Total Assets (dollars in millions)
Slide 14: Total Loans Outstanding
Total Loans Outstanding (dollars in millions)
Slide 15: Nonperforming Assets by Category
12/31/2010 12/31/2009 Category $ Value # of Loans $ Value # of Loans SBA 7(a) 8,162 76 6,559 75 SBA 504 2,714 4 5,575 2 Commercial 5,452 19 7,397 21 Residential Mortgage 5,085 16 5,578 13 Consumer 249 3 387 6 OREO 2,346 7 1,530 5 Total 24,008 125 27,026 122 Selected Ratios 12/31/2010 12/31/2009 Nonp
Slide 16: Total Deposits
Total Deposits (dollars in millions)
Slide 17: Capital Ratios
Capital Ratios Unity Bancorp, Inc. FDIC-Insured Commercial Banks
Slide 18: Compelling Investment Considerations
Compelling Investment Considerations ® Discount to book ® Knowledgeable and experienced management team ® Attractive branch franchise ® Improving bank fundamentals ® Positioned for economic rebound ® Insider ownership
Slide 19: Price and Book Value
13.34 oN FSF OD 8A aa a 6.99 61 708 ™ Price : 6.08 = Book Value 39 4.02 1 2006 2007 2008 2009 2010
Slide 20: Data sources
The previous slides contained data from the following sources: ® FDIC-Insured Commercial Banks: v Obtained from FDIC.gov Quarterly Banking Profile ® SNL