Unity Bancorp, Inc. · NASDAQ:UNTY
Unity Bancorp — Investor Presentation (July 2014)
29 slides from Unity Bancorp's investor presentation, Jul 28, 2014
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, New Jersey Approximately $932 million in assets & $728 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
Attractive Market Area 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 Cou
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 & 2014 Highlights
+ 2013 & 2014 Highlights Repaid all CPP funds (TARP) and terminated the related warrants Record Commercial Loan growth Improved credit quality resulted in lower loan loss provisions as well as reduced loan collection and OREO expenses Significant growth in residential mortgage originations resulted
Slide 12: Summary Balance Sheet and Capital
Summary Balance Sheet and Capital (S in Millions) 2014 2013Y —_2012¥ Assets 932 921 820 Total Loans 709 «679587 Deposits 728739649 Equity 60 57 78 (%) TCE Ratio 633 605 «6.83 Tier 1 Ratio 10.86 «1074 «14.85 Total Capital Ratio 1212 11.99 16.12
Slide 13: Loan Mix
Slide 14: Commercial and SBA Loan Area
Slide 15: Mortgage Loan Originations
Mortgage Loan Originations (ollars in milion)
Slide 16: Asset Quality Continues to Improve
Asset Quality Continues to Improve
Slide 17: Asset Quality
Asset Quality (dollars in thousands) ‘+ 7.5% desine in non-performing assets fom 6/30/13 10/20/14 ‘+ 10.7% desine in nonpertorming loans from 620/13 106/20/14 Nonperforming Assets seats)
Slide 18: Year Deposit Trend
5 Year Deposit Trend (dollars in thousands) Normesnseery semis cece fous sae sia
Slide 19: Summary Income Statement and Profitability
Summary Income Statement and Profitability (3 inmiions) zai 2013 20tay 20137. 73 68 Net interestincome 46 135 Provision forLoan Losses 06 03 120 10 Noninterest income 16 A: 320035 Noninterest Expense et 4 124 122 Net income 18 13 28 28 e) Return on Average Assets oss 067 oes 063 Return on Average Eq
Slide 20: Net Interest Income & Net Interest Margin
Net Interest Income & Net Interest Margin (dotars in mao) sist stom zoosy” 2oroy ” 2orry ” 2oi2y” 2oray " eons" eons ID YTD Nm
Slide 21: Impact of Borrowings
Impact of Borrowings (dollars in thousands, except ratios) 10,000.00 3.700% 4777018 $370 $310,000.09 4.025% wn2201 308 10,000.00 4.120% spisa0i6 33 $10,000.00 4.208% 452017 321 310,000.00 4.234% arozo17 ee $10,000.00 3.337% spe0c017 34 315,000.00 3.670%. 228208 S651 378,000.00 3 885% as ‘Anqual expe
Slide 22: Strong Levels of Noninterest Income
Strong Levels of Noninterest Income {dollars in millions) Noninterest Income (excludes gains losses] on securities)
Slide 23: Year to Date Noninterest Income Detail
Year to Date Noninterest Income Detail Branch fee income s 18 Service and loan fee income 520 Gain on sale of SBAloans held forsale, net 337 Gain on sale of mortgage loans 553 BOL income 192 Net securty gains (losses) 378 Other income. 408 ‘otal noninterestincome s 3166S a
Slide 24: Noninterest Expense Controls
Noninterest Expense Controls {dolars in mains) Noninterest Expense
Slide 25: Year to Date Noninterest Expense Detail
Year to Date Noninterest Expense Detail ‘Compensation andbenetits 3 Occupancy Processing and communications Furnture and equipment Professionalservices: Loan collection costs ‘OREO expenses Depost insurance Advertsing Other expenses ‘otal noninterest expense: s a
Slide 26: Profitability Progression
Profitability Progression Diluted Earnings per Share a
Slide 27: Tangible Book Value Per Share
Tangible Book Value Per Share zoey" zoroy "ony aor2y " aoray ” 2orsar + Ra hee TAD pd el de et a
Slide 28: Capital Ratios
Capital Ratios Leverage Ratio IB nity Bancorp, ne. pea folc-Insured Commercial“ _ E lie “Tier 1 Risk-Based Capital Ratio eek | Le
Slide 29: Compelling Investment Highlights
Compelling Investment Highlights Improving bankfundamentals Positioned for economic rebound