Unity Bancorp, Inc. · NASDAQ:UNTY
Unity Bancorp — Shareholder Meeting (April 2013)
24 slides from Unity Bancorp's shareholder meeting presentation, Apr 25, 2013
Slide 1: 2013 Shareholders' Meeting
2013 Shareholders’ Meeting April 25, 2013 & Uni BANcoRP — >
Slide 2: Unity's Accomplishments in 2012
UNITY’S Accomplishments in 2012! “Improved earnings - 67% increase Noninterest-bearing deposits up 13% “Residential mortgage loan origination up 62% “Opened two new branches - Somerset and Washington “Strategic reduction in SBA loans and time deposits “Strengthened capital ratios
Slide 3: Unity's Strategic Direction
UNITY’S Strategic Direction ++ Focus on relationship-based business banking +> Reaffirm lending footprint > Maintain net interest margin + Stabilize credit quality ~ Effective cost control a
Slide 4: Unity's Branch Network
UNITY’S Branch Network New Jersey Pennsylvania * Hunterdon County © Northampton County = Clinton Forks Township Flemington > Whitehouse + Middlesex County Edison & Highland Park = Midalesex South Plainfield * Somerset County ‘> North Plainfila Somerset * Union County © Linden Scotch Pains Union * Wa
Slide 5: Washington Branch
_ Washington Branch ‘opened 3/19/2012 Ribbon Cutting ‘3/22/2012
Slide 6: Somerset Branch
Somerset Branch + Opened 11/16/2012 + Ribbon Cutting 1/28/2013
Slide 7: Unity's Marketing Initiatives
UNITY’S Marketing Initiatives Two New Branches Opened - Washington & Somerset Direct Mail Billboard programs supporting new account acquisition Companywide iPad Contest fan in conjunction with relationship CD promotion Online’ Branch channels; emails gathered Meet the Home Team 99 © wean a
Slide 8: Unity's Marketing Initiatives
UNITY’S Marketing Initiatives “ Unity Branded Credit Card Launched * Ongoing Direct Mail program- customer and prospect mailings executed through partnership with Elan * Mobile Banking Launched + Help attract younger customers + Deepen existing customer loyalty & satisfaction Go Lodtl Go Mobjlet tH
Slide 9: Unity's Recent and Future Highlights
UNITY’S Recent and Future Highlights + Joint marketing agreement with realtors Online Banking Customer Tutorials - Completed March 2013 +» Purchased three existing branches (Edison, South Plainfield, Highland Park) which will result in annual savings in excess of $200k for the Company - Completed Ap
Slide 10: Balance Sheet - Assets
Balance Sheet - Assets (dollars in thousands) 12/31/2012 | 1 1 Cashand cash equivalents $94,192 $ 82,574 Securities 111,053 107,536 ‘SBA 7(a) and 504 loans 106,968 126,951 Commercial loans 301,564 283,104 Residential mortgage loans 132,094 134,090 Consumerloans 46,410 48,447 Total loans 7 se7036 «59
Slide 11: Commercial and SBA Loan Trade Area
Commercial and SBA Loan Trade Area (dollars in thousands) 2007 2012 even serey
Slide 12: Mortgage Loans
Mortgage Loans
Slide 13: Nonperforming Assets
Nonperforming Assets (dollars in thousands) ‘$ Value + of Loans| $ Value # of Loans ‘SBA 7(a) $ 4,633 48] $ 5,859, 75 ‘SBA 504 2,562 3| 2,086 3 = = Note: Nonperforming TDR figures are included in Nonperforming Assets above
Slide 14: Balance Sheet - Liabilities and Equity
Balance Sheet - Liabilities and Equity (dollars in thousands) 12 poi2 | 12/31/2011 Demand deposits S 229,262 $ 205,942 Savings deposits 294,533, 278,603 Time deposits 124,965 159,426 Total deposits 648,760 643,971 Borrowed funds and subordinated es es Accrued expenses and other liabilities 2,995 2,8
Slide 15: Year Deposit Trend
5 Year Deposit Trend (in thousands) P| 2008 | 2009 | 2010 | 2011 | 2012 Noninterest-bearing eemeleheces? $74,090 $ 0,100 $ 91,272 $101,193 $114,424 Interest-bearing ‘demand deposits Savings 134,875 286,334 277,394 278,603, 294,533 Total core deposits $296,011 $466,480 $474,196 $484,545 $523,795 87,0
Slide 16: Total Noninterest-bearing Deposits
Total Noninterest-bearing Deposits $120 so $100 $90 $80 $70 $60 (dollars in millions) tl ~ —_——d 2010 2011 2012
Slide 17: Key Bank Ratios
Key Bank Ratios For the year ended 12/31/2012 Public Barks $300 Unity —_| million - $25 billion Return onaverageassets, 0.53% 0.55% Return onaverage equity 4.80% 4.23% Net interest margin 3.62% 3.625 Net charge-offs to average loans 0.94% 0.75%
Slide 18: Income Statement
Income Statement (dollars in thousands) For the years ended. T2/s/2012| 12/31/2011 Net interest income S 27,429 $ 28,972 Provision forloan losses (4,000) (6,800) Noninterestincome 7,338 5,661 Noninterestexpense (24,297) (24.518) Net income before taxes ~ 64703315 Provision forincometaxes ere ry Net
Slide 19: Net Interest Margin
Net Interest Margin 4.00% - -e FDIC-Insured Commercial Banks 2008 2009 2010 2011 2012
Slide 20: Noninterest Income
Noninterest Income (dollars in thousands) For the years ended 12/31/2012] 12/31/2011 Branch fee income $1528 $1,445 Service and loan fee income 1,252 1,034 Gain on sale of SBA loans 688 962 Gain on sale of mortgage loans 2274 951 BOLI income 296 295 Net security gains 573 303 Other income 727 671 To
Slide 21: Noninterest Expense
Noninterest Expense (dollars in thousands) For the years ended 12/31/2012] 12/31/2011 Compensation and benefits S 12,560 $ 11,781 ‘Occupancy 2,722 2,781 Processing and communications 2,180 2.104 Furniture and equipment 1,480 1,527 Professional services 789 a7 Loan collection costs a2, 979 ‘OREO expe
Slide 22: Capital Ratios
Capital Ratios Leverage Ratio 12.00% Unity Bancorp, lnc. unity! Py ie FDIC-Insured Commercial 10.00% MM sank sow Unity without TARP eis 7.00% 2008 2009 2010 2011 2012 Meine east cu ‘Total Risk-Based Capital tae Ratio 02 2008 2010 2011 2012 2008 2009 2010 2011 2012
Slide 23: 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 24: 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