Unity Bancorp, Inc. · NASDAQ:UNTY
Unity Bancorp — Investor Presentation (November 2013)
26 slides from Unity Bancorp's investor presentation, Nov 12, 2013
Slide 1: Unity Bancorp
& 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 15, 1991 + Headquarteredin Clinton, New Jersey + Approximately $875 million in assets & $725 million in deposits + Unity Bank provides financial services to retall, corporate and small business customers through its 15 retail service offices locatedin Hunterdon,
Slide 4: Bank Franchise
Slide 5: Attractive Market Area
tive Market Area 7 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 County
Slide 6: Strategic Goals
Strategic Goals « To grow our business relationshipsby being a responsive bank, providing excellent service with flexble terms and conditions — No less than 10% loan growth annualy + Expand the Mortgage Division by growing istof referring realestate agents — Target 15% annual growth rate purchased t
Slide 7: Core Values
Slide 8: Management team
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: 2012-2013 Highlights
2012-2013 Highlights Repaid all CPP funds (TARP) andterminatedthe related warrants Record Commercial Loan growth Improved credit quality since December 31, 2011 resultedin lower loan loss provisions as well as reduced loan collection and OREO expenses Significant growth in residential mortgage origi
Slide 12: Summary Balance Sheet and Capital
Summary Balance Sheet and Capital (S in Millions) 301320 2011 Assets $876 $820 sett Total Loans 661 587 593 Deposits 721 649 644, Equity 56 78 4 TCE Ratio 6.22% 6.83% += 6.48% Tier 1 Ratio 10.81 14.90 14.30 Total Capital Ratio 12.07 16.10 15.60
Slide 13: Summary Income Statement and Profitability
Summary Income Statement and Profitability (Sin Milions) 3013 3Q12 2012Y 2011 Net interestincome $69 87.0 S274 $29.0 Provision for Loan Losses 08 49 40 68 Noninterestincome 17 18 73 87 NoninterestExpense 59 60 243 245 Net Income 13 12 42 25 Retumn onAverage Assets 0.62% 0.60% 0.63% 0.31% Retum onAve
Slide 14: Profitability Progression
Profitability Progression Diluted Earnings per Share
Slide 15: Loan Mix
Loan Mix
Slide 16: Commercial and SBA Loan Trade Area
Commercial and SBA Loan Trade Area a
Slide 17: Asset Quality Continues to Improve
Asset Quality Continues to Improve NPLs/ Loans Hii ine li
Slide 18: Asset Quality
Asset Quality {28% decline in non-performing assets fom 8/30/12 1080/13, ‘+ 47% decne in loans past ue 50 days of more and stil accing from 8/30/12 t 8/20/13
Slide 19: Deposit Trend
5 Year Deposit Trend (inthousands) senssceess ee ee eee
Slide 20: Maintaining Total Revenue & Net Interest Margin
Maintaining Total Revenue & Net Interest Margin “Despite the intrest rate envionment nd minimal balance sheet goth, we have focused on (goning revenue and protactng thet terest margin Total Revenue and Net Interest Margin zoosy ” 200ev " 2oroy ” 2orry ” 20127 " sept20, ”sept20, HATO 2NTD y foaiRever
Slide 21: Strong Levels of Noninterest Income
Strong Levels of Noninterest Income ! —
Slide 22: Mortgage Loan Originations
Mortgage Loan Originations
Slide 23: Noninterest Expense Controls
Noninterest Expense Controls > ‘=Noninterestexpense —Noninterest Expense /Averape Assets
Slide 24: Tangible Book Value Per Share
Tangible Book Value Per Share zoay " 200sy ” 2oy amity” orzy "201308 + Ra hep pad ede et a .
Slide 25: Capital Ratios
Capital Ratios gu Unity Bancorp, inc Leverage Ratio FOIC-Insured Commercial 11.00% Banks 9.00% 7.00% 09 10 1 12-13 ‘Tier 1 Risk-Based Capital “Total Risk-Based Capital Ratio Ratio 15.00% 15.50% 13.00% 11.00% oom 10.50% 09 10 1 12 13 09 10 11 12 13 +201 gat Ae ntentepat te TAR peed end been rt
Slide 26: Compelling Investment Highlights
Compelling Investment Highlights Improving bankfundamentals Positioned for economic rebound
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