Unity Bancorp, Inc. · NASDAQ:UNTY
Unity Bancorp — Super Community Bank Conference 2005
34 slides from Unity Bancorp's conference presentation, Nov 7, 2005
Slide 1: Super Community Bank Conference Nov 7-8 2005
UNITY® _BANCORP*ING Super Community Bank Conference Nov 7-8 2005
Slide 2: Forward-Looking Statement
UNITY® BANCORP+ING Forward-Looking Statement This presentation contains certain forward-looking statements, either expressed or implied, which are provided to assist the reader in understanding anticipated future financial performance. These statements involve certain risks, uncertainties, estimates
Slide 3: Unity Company Profile
UNITY® _BANGORP+ING Unity Company Profile * State Chartered - Opened 1991 + Assets of $610 million * Deposits of $519 million + 13 branches, headquartered in Clinton, NJ ¢ Strategic commercial lending focus + Nationally recognized SBA lender
Slide 4: Total Assets
Total Assets #94195)" 196) 797 N98. 199: "00 '01 '02 "03 '04 19/05
Slide 5: Milestones
UNITY® -BANCORP+ING Milestones Unity recorded record profits, YTD $4.5 million 9th Consecutive year of SBA awards — #1 Among NJ mid-sized banks — Silver award from the SBA — Long Island development corporate lender of the year — 34th Largest SBA lender in the United States Branch acquisition in Phil
Slide 6: Performance Ratios
BANCORP+¢ING rformance Ratios YTD | QID 2003 2004 | 9/30/05 | 9/30/05 Earnings Per Diluted Share $0.73 $0.83) $0.69/ $0.25 Return on Assets 1.04% 1.10%] 1.08%] 1.09% Return on Common Equity 16.05% 16.32% | 15,86%| 16.35% Efficiency Ratio 66.59% 64.51% | 62.16%| 58.17%
Slide 7: Unity Footprint
UNITY® _BANCORP+ING Unity Footprint © Current Branch Locations Pending Branch Locations Presentation included a map of New Jersey with Unity’s 13 current branch locations noted as well as the 3 new locations (Phillipsburg, Washington and Middlesex, New Jersey).
Slide 8: Unity Commandments
UNITY® _BANCORP+ING Unity “Commandments” Treat all employees and customers with dignity and respect Provide the highest level of service for our customers Increase the profits of the bank Always do the right thing
Slide 9: Experienced Management Team
BANGORP*ING” Experienced Management Team Name Title Years Banking Experience Jim Hughes, CPA President and CEO 23 Alan Bedner, CPA Executive VP, CFO 12 Mike Bono Executive VP, Corporate 37 Development Mike Downes Executive VP, CLO 20 John Kauchak Executive VP, COO 25 Kelly Stashko Executive VP, 19 C
Slide 10: Prudent Credit Culture
UNITY® -BANCORP+ING Prudent Credit Culture + Experienced Lenders + Comprehensive Approval Process ¢ Reliance on Cash Flow and Collateral + External and Internal Loan Review Process + Experienced Asset Management Process
Slide 11: Business of the Month
Ane IORP+ING Business of the Month Presentation included a picture of the Business of the Month display area in the Clinton Branch.
Slide 12: Kids Corner
BANCORP+*ING Kids Corner Presentation included a picture of the Kids Corner area in the Clinton Branch.
Slide 13: Café Unity
Ane SORP*ING Café Unity Presentation included a picture of the Café Unity area in the Clinton Branch.
Slide 14: Advertisements
BANCORP*ING Advertisements Presentation included pictures of 2 deposit promotion ads in 2005
Slide 15: Financial Presentation
BANCORP+¢ING Financial Presentation
Slide 16: Net Income
us BANCORP+ING Net Income 2001 2002 2003 2004 9/30/05 YTD
Slide 17: Income Statement
BANCORP?IN¢ Income Statement In thousands 9/30/2005 38 2002 2003 2004 |2004¥TD 200SYTD _ Change Net interest income Ss: $17,867 $ 19,158 |$ 14,091 $ 16,267 15.4%) Provision for loan tosses 2350 1,600 1,175 825 1325 60.6%] Non-interest income 7.991 8343 7,629 5,761 6118 6.2%) Non-interest expense 155
Slide 18: Return on Average Assets
UNITY Return on Average Assets BANCORP* 1.0% + 0.8% 7° 0.5% 0.3% 0.0% 2001 2002 2003 2004 9/05 YTD
Slide 19: Return on Average Equity
Unive Renn on BANCORP¢L 19.5% 14.5% 9.5% 4.5% -0.5% 2001 2002 2003 2004 9/05 YTD.
Slide 20: Efficiency Ratio
BANCORP+ING Efficiency Ratio 100.0% 80.0% 60.0% 40.0% 20.0%
Slide 21: Total Assets
BANCORP+ING Total Assets $250 1201 12/02 12/03 12/04 9/05
Slide 22: Total Loans
BANCORP*ING 12/01 12/02 12/03, 12/04 09/05,
Slide 23: Loan Portfolio Composition
BANCORP+¢ING 12/31/01 [spa 19.6% Commercial 43.8% Res Mortgage 26.8% | | Consumer 9.8% L [spa 18.6% Commercial 55.8% Res Mortgage 14.6% | Consumer 11.0%
Slide 24: Asset Quality
BANCORP*ING Asset Quality 2004 9/30/2005 4,436 5,943 1.57% 1.51% 143.14% 1.10% 1.33% 0.19% 0.21% Nonperforming assets ALLL Total Loans ALLLNPL NPL/Total Loans Net Charge-Off Ratio
Slide 25: Net Interest Margin
dd BANCORP+ING Net Interest Margin 4.25% 3.75% 3.25% 2.75% Prime Rate 2001 2002 2003 2004 9/30/05 [Net Interest Spread Margin 2001 2002 2003 2004 9/30/05 4.75% 4.25% 4.00% 5.25% 6.75%
Slide 26: Total Deposits
BANCORP+ING Total Deposits
Slide 27: Deposit Composition
BANCORP*ING 12/01 12/02 12/03 12/04 9105
Slide 28: Capital Ratios
Capital Ratios 12.32% 12.53% 12.39% 12/01 12/02 12/03 12/04 ___ Leverage Tier I__ Total Capital 9/05
Slide 29: Key Investment Appeals
BANCORP+¢ING Key Investment Appeals
Slide 30: Key Investment Appeals
UNITY® _BANCORP+ING Key Investment Appeals ¢ Top Quartile Performance Ratios + Continued Earnings Momentum ¢ Focus on Deposit and Loan Growth + Leader in SBA Lending « Insider Ownership + Attractive Valuation + Expansion Strategy « Growing Market Share in Attractive Markets
Slide 31: Quarter September 30, 2005 Peer Comparison
BANCORP+¢ING Quarter September 30, 2005 Unity Peer Avg* Performance Ratios (%): ROAA 1.09 0.73 ROAE 16.35 8.84 Net Interest Margin 4.12 3.89 Efficiency Ratio 58.17 73.00 Loans / Deposits 83.82 74.70 Market Ratios: Price/Earnings (x) 14.54 21.80 Price/Book (%) 202.32 208,70 Dividend Yield (%) 1.53 24
Slide 32: Market Price and Book Value
12.80 13.09 a8 $5 ee eee 4.35, $3 + 12/31/01 12/31/02 12/31/03 12/31/04 9/30/2005, ___ Market Price —- Book Value
Slide 33: BANCORP*ING
BANCORP*ING
Slide 34: Searchable text section of graphics
Searchable text section of graphics shown above [L OGO] Super Community Bank Conference Nov 7 - 8 2005 [GRAPHIC] [L OGO] Forward-Looking Statement This presentation contains certain forward-looking statements, either expressed or implied, which are provided to assist the reader in understanding anti