Unity Bancorp, Inc. · NASDAQ:UNTY
Unity Bancorp — Shareholder Meeting (April 2008)
20 slides from Unity Bancorp's shareholder meeting presentation, Apr 24, 2008
Slide 1: 2007 Industry Environment
2007 Industry Environment Subprime mortgages trigger capital/credit market problems Lowest Net Interest Margin for the industry since 1989 Annual earnings declined 27.4% compared to 2006 Lowest annual net income for industry since 2002 Approximately 60% of institutions reported lower earnings Net ch
Slide 2: Net Income, EPS, ROA and ROE
BANCORP?*INC Net Income Earnings Per Diluted Share Retum on Assets Retum on Common Equity 2007* 2007 2006 $ 5,129 $ 4,725 $ 5,845 $ 0.72 $ 066 $ 0.81 0.72% 0.66% 0.90% 10.98% 10.11% 13.56% * Excludes $607 thousand impairment charge on Freddie Mac preferred securities
Slide 3: Recent Milestones 2007
Recent Milestones 2007 - - Record year for loan closings Rollout of national SBA program Opened Middlesex, NJ branch, December 2007 Continued expansion into Pennsylvania Full implementation of back office capture Intense focus on core deposit growth Now offering suite of investment products
Slide 4: Quarterly Performance Ratios
Quarterly Performance Ratios
Slide 5: Experienced Management Team
Experienced Management Team Name Title Years Banking Experience Jim Hughes, CPA President and CEO 26 Alan Bedner, CPA Executive VP, CFO 14 Mike Downes Executive VP, CLO 22 John Kauchak Executive VP, CDO 27 Marc Sovelove Senior VP/Retail Lending 23 Keith Fenstermaker Senior VP/Credit Administration 3
Slide 6: Strategic Objectives
Strategic Objectives Improve our customer service and sales culture Focus on low-cost core deposits Provide alternative investments through Emerald Financial Rollout of national SBA program Restructure lending areas/systems Continued emphasis on mortgage line of business Continue to invest in our co
Slide 7: Financial Presentation
Financial Presentation • Peer data includes 20 Public Commercial Banks in New Jersey between $250 million and $3.5 billion. Data as of or for the period ending December 31, 2007. Pricing Data as of March 31, 2008.
Slide 8: Income Statement
Income Statement In thousands
Slide 9: Income Statement
Income Statement In thousands
Slide 10: Assets & Loans
Total Assets Total Loans 8.4% 6.8% 16.2% 2.2% Assets & Loans In millions In millions
Slide 11: Loans by Type
Loans by Type Loan Type % Rate Loan Type % Rate SBA 15.6% 10.24 SBA 15.9% 10.74 Commercial 61.5% 7.43 Commercial 61.9% 7.53 Res Mortgage 12.5% 5.51 Res Mortgage 12.5% 5.84 Consumer 10.4% 6.73 Consumer 9.7% 6.79 12/31/06 12/31/07
Slide 12: Nonperforming Assets
BANCORP*INC Nonperforming assets SBA Guarantee Net Nonperforming assets NPL/Total Loans ALLL/Total Loans Net Charge-Off Ratio 2005 2006 2007 1Q 2008 4,539 9,120 5,567 4,408 758 2,953 714 591 3,781 6,167 4,853 3,817 0.97% 1.75% 0.93% 0.69% 1.54% 1.50% 1.42% 1.43% 0.20% 0.17% 0.14% 0.12%
Slide 13: Net Interest Margin
Net Interest Margin 2003 2004 2005 2006 2007 1Q 2008 Prime Rate 4.00% 5.25% 7.25% 8.25% 7.25% 5.25%
Slide 14: Total Deposits
Total Deposits 6.1% 6.8% In millions
Slide 15: Shareholders' Equity and Book Value
Shareholders’ Equity Book Value In millions
Slide 16: Capital Ratios
BANCORP*INC 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% +t t t t t + + + + 1 12/03 12/04 12/05 12/06 12/07 _ Leverage -*-TierI Total Capital
Slide 17: Key Investment Appeals
Key Investment Appeals
Slide 18: Stock Performance vs NASDAQ Bank Index
BANCORP*INC 300 y — J Index Value _ i i 12/02 12/03 12/04 12/05 12/06 12/07 Unity Bancorp, Inc. — NASDAQ Bank Index
Slide 19: Ratios
Ratios • Peer data includes 20 Public Commercial Banks in New Jersey between $250 million and $3.5 billion. Data as of or for the period ending December 31, 2007. Pricing Data as of March 31, 2008.
Slide 20: Key Investment Appeals
Key Investment Appeals • Growing market share in attractive markets • Focus on deposit and loan growth • Leader in SBA lending • Expansion strategy • Insider ownership • Attractive valuation