Unity Bancorp, Inc. · NASDAQ:UNTY
Unity Bancorp — Shareholder Meeting (April 2016)
28 slides from Unity Bancorp's shareholder meeting presentation, Apr 28, 2016
Slide 1: 2016 Shareholders' Meeting
& Unrry BANCORP 2016 Shareholders’ Meeting April 28, 2016
Slide 2: Total Loans — 16.7% increase
Total Loans — 16.7% increase + 15.89 incremein commeial loans + 1984 incremein mortgage loans + 30.4%¢incramein consomer loans Record SBA loan volume Total Deposits — 12.6% increase + 21.3¢binereasinnonitretSeasig deposits ‘¢Eamnings of $9.6 million, 49.1% increase over prior year Diluted EPS of $1.
Slide 3: 2016 goals and business objectives
To grow our business relationships by being a responsive bank, providing excellent service with flexible tems and conditions — 10% loan growth ‘Mortgage Division — 15% growth rate in purchased transactions SBA Division — Increase 7A Volume noless than $30 million Growth in core deposits of at least
Slide 4: Launched new website in March 2016
Launched new website in March 2016 Business mobile capture + Enhancing e-statement systems to include loans Somerville branch set to open end of summer Outsource our network Migration to paperless files a
Slide 5: Headquarters purchase, debenture repurchase and new branches
+ Purchase of Clinton, NJ Headquarters on March 9, 2016 for $4.12 millon, + Repurchase of $5.0 million of subordinated debentures at aprice of $0.5475 per dollar Resuled na pean gin ofppronnataly 2 + Announcement of new branch, in Somerville, NI. 1,600 square-Got single-story ulleing tien ining to o
Slide 6: ecmdes Cosy XCar Whiniose + Ulan Cz ML Sn Pain Ue
ecmdes Cosy XCar Whiniose + Ulan Cz ML Sn Pain Ue em CoN Ban Hite Pot Mm, + We Gn Pipi gen Novaampe Coan: Fos See gp oe att ea ete
Slide 7: Market demographics and household income
‘+ High nowesnoldincoms in oor mast contin lative tothe Sate cfNer Ieay and ne ationise sian + SateofNew ley ants in th nation in medion housshld income 4 in percpita income and ‘npopuion esity ‘Witt esgettomatin hoseholdincome Hunterton County and Somerset County rk #1 znd #2in Nevins ‘As ofDecenbe
Slide 8: Recent Financial Performance
Recent Financial Performance a
Slide 9: Key Bank Ratios
Key Bank Ratios
Slide 10: Key Bank Ratios
Key Bank Ratios Asof | Core*asof | Asof Unity Bancorp 12312015 _ 3/312016 3812016 [Renunon average assets 0.96% 1.00%6| 1.54%6| Return on average equity 12.92%] 13.67%| 21.05%] [Net Interest Margin 3.63% 3.48 3.48 [Efficiency Ratio 64.41%] 60.05% 50.16%] * Excludes gain on repurchase of subordinated
Slide 11: Summary Balance Sheet
Summary Balance Sheet ‘+ Ralaed S61 ition asition! capital areal fine couplation ofthe commen stocigts ing in 2014
Slide 12: Loan Mix
Loan Mix
Slide 13: Mortgage Loan Originations
Mortgage Loan Originations (ollarsin mslions) sisio $160.00 1582 $10.00 5136 sues 394 1 2a 2012 208 2014 205 Porches Refinance
Slide 14: Mortgage Loan Originations
Mortgage Loan Originations (ollarsin mais oo 2012 208 204 uConeening wNooConfaning 2015,
Slide 15: Asset Quality Continues to Improve
Asset Quality Continues to Improve ‘Nonperforming Assets to Total Assets aout mo 0B 214 ms
Slide 16: Year Deposit Trend
5 Year Deposit Trend fa 2011 202 26 m4 201s sinsresctesing DDA & SAV cago Totals oposite uNoninerestbearing emand deposits
Slide 17: Summary Income Statement and Profitability
Summary Income Statement and Profitability 2014 [et Itarast Income Is Ss 301 [Provision for Loan Losses 26 honiterst Fac ome 67 [Neninterst Expense 47 for acome Taxes 31 it Toso is s ms [Disted Earnings Per Share |S in |s 081 [Rectum on Average Assets 096 %| 070% [Retum on Average Equity 2 1028 Net
Slide 18: Net Interest Income & Net Interest Margin
Net Interest Income & Net Interest Margin (doltarsinmilions) ‘$000 379m eae 3.60% BL 7 36% 350% $3000 3.00% 32500 i $2000 250% 1500 i 2.00% 1000 1.50% $500 ae 1.00% 201 202 2013 204 aos aaNet InerestIncome -aeNet Invest Magis
Slide 19: Strong Levels of Noninterest Income
Strong Levels of Noninterest Income $9.00 5, 20% $8.00 a 16.0% $6.00 4 $5.00 ad $4.00 | sv $3.00 $2.00 40% $1.00 su ___ |__| oon, 2011 2012 2013 2014 201 lmaiNoninterest Income -<+-Noninterest ncomelRevenue
Slide 20: Noninterest Income
Noninterest Income fiollarsin thousands) [Branchfee income 146 Service andloan fee income 126) |Gain on sale of SB.A loans held far sale, net 97 \Gain onsale of mortzage loans, ret 2336) 113] [BOLI incane 33 555| [Net security gxins 2s} 433] |Other income ox su| [Total noninterest income is Tals 659
Slide 21: Noninterest Expense Controls
Noninterest Expense Controls (iollarsin mslions)
Slide 22: Noninterest Expense
Noninterest Expense [Compensation and benef s By |Occugmncy 24 [Processing andcommmications 246] [Furniture ane eument 151 [Professoeal senices 7) [Loan costs % [OREO expenses 4s [Depusit insurance oy |Ackertsine 105 oq lower exrenses 215 1g0] [Total noninterest expense [5 268575 BC + Tere in epenst
Slide 23: Profitability Progression 2013 2014
Profitability Progression 12 2013 2014
Slide 24: Tangible Book Value Per Share
Tangible Book Value Per Share
Slide 25: Market Price
Market Price $B.00 1.00 al su.00 $10.00 201 2012 2013, m4 2015
Slide 26: Leverage Ratio
| LvemgeRase am sty | (GM FIC-Insured Commercial Banks so - Teal Bul Copia Rass | Tier Ri Sid Copal ase
Slide 27: Compelling Investment Highlights
Compelling Investment Highlights | I]
Slide 28: Slide 28