Slide 1: 2006 Shareholders' Meeting
2006 Shareholders’ Meeting
Slide 2: Performance Ratios 2005 vs 2004
UNITY® BANGORP+ING Performance Ratios 2005 vs 2004 2003 2004 Net Income $ 4583 $ 5,330 $ 6,210 880 : $ 0.96 0.13 15.7% 1.10% 1.10% Return on Common Equity — 16.05% 16.32% 16.29% Efficiency Ratio 66.59% 64 Mo 61.53% Earnings Per Diluted Share $ 0.77 $ 0. Return on Assets 1.04%
Slide 3: Performance Ratios, cont.
UNITY® BANCORP+ING Performance Ratios, cont. a Qi 3/31/2005 3/31/2006 Net Income $ 1,310 $ 1,657 Earnings Per Diluted Share $ 0.20 $ 0.25 $ 0.05 Retum on Assets 1.03% 1.08%} Retum on Common Equity 14.63% 16.26% Efficiency Ratio 66.37% 65.25%|
Slide 4: Experienced Management Team
UNI TY & Experienced Management Team BANCORP*ING Name Title Years Banking Experience Jim Hughes, CPA President and CEO 24 Alan Bedner, CPA Executive VP, CFO 12 Mike Bono Executive VP, Corporate Development 37 Mike Downes Executive VP, CLO 20 John Kauchak Executive VP, COO 25 Kelly Stashko Executive
Slide 5: Recent Highlights
UNITY® _BANCORP+ING Recent Highlights > Unity recorded record profits - $6.2 million, ROE 16.29% > 10" consecutive year of SBA Awards * Third largest SBA lender in NJ (based on volume) = 30" largest SBA lender in the United States (based on volume) = Gold award from NJ District Office = Bronze award
Slide 6: Strategic Objectives
UNITY® “BANGORP+ING Strategic Objectives > Consistently outperform our peers (Return on Equity) > Focus on Deposit & Loan Growth / Margin Management >» Continue to be a leader in SBA lending > DeNovo growth strategy - 1 to 3 branches per year > Effective Capital Management.
Slide 7: Unity Footprint
Unity Footprint
Slide 8: Financial Presentation
BANCORP+¢ING Financial Presentation
Slide 9: BANCORP*ING
us BANCORP*ING
Slide 10: Income Statement
Income Statement Jn thousands 2004 2005, Change 3/31/2005 3/31/2006 Change ‘Net interest income $ 19158 $ 22,234 16.1% $ 5,265 $ 6,053 15.0% Provision for loan losses 1175 1,850 574% 300 300 0.0% ‘Non-interest income 7,629 8,190 74% 1,791 2,002 11.8% ‘Non-interest expense 17,230 18,676 8.4% 4,648 5,
Slide 11: Total Assets
BANCORP+ING Total Assets $250 1202 12/03 12/04 12/05 3/06
Slide 12: BANCORP*ING
BANCORP*ING 12/02 12/03 12/04 12/05 03/06
Slide 13: Loan Portfolio Mix
BANCORP*ING SBA 16.9% Commercial 55.6% Res Mortgage 16.1% I | Consumer 11.4% SBA 17.5% Commercial 58.1% Res Mortgage 13.8% 1 | Consumer 10.6%
Slide 14: Asset Quality
BAN IORP*ING Asset Quality Nonperforming assets ALLL/Total Loans ALLL/NPL NPL/Total Loans Net Charge-Of Ratio 2003 5,722 1.58% 99.20% 1.59% 0.11% 2004 4,436 1.57% 143.14% 1.10% 0.19% 2005 4,539 1.54% 158.04% 0.97% 0.17% 3/31/2006 3,781 1.52% 197.50% 0.77% 0.06%
Slide 15: Net Interest Margin
dd Net Interest Margin BANCORP*INC 425% —— a 4.28% 4.09% 4.18% 4.17% 4.12% 3.75% - “ee —— -—— 3.85% Yo fo 5 6 3.77% 3.74% AEDS 3.25% 2.75% 2002, 2003 2004 2005 (3/31/2006 2002 2003 2004 2005 3/31/06 Prime Rate 4.25% 4.00% 5.25% 6.75% 7.75%
Slide 16: Total Deposits
us BANCORP+ING Total Deposits 12/02 12/03 12/04 12/05 3/31/2006
Slide 17: Shareholders' Equity
areholders’ Equity BANCORP*ING 12/02 12/03 12/04 12/05 3/31/2006
Slide 18: Capital Ratios
Capital Ratios 12/02 12/03 12/04 12/05 3/31/2006 ___ Leverage Tier I__ Total Capital
Slide 19: Key Investment Appeals
BANCORP+¢ING Key Investment Appeals
Slide 20: Ratios vs Peers
JORP eI! Quarter December 31, 2005 Unity Peer Avg* Performance Ratios (2%) ROAA 1.10 0.76 ROAE 16.29 8.63 Net Interest Margin 4.17 3.92 Efficiency Ratio 61.53 69.91 Market Ratios: Price/Earnings (x) 16.72 21.15 Price/Book (%) 244.29 180.06 Dividend Yield (%) 1.36 1.10 “Peer data includes 40 Public C
Slide 21: Stock Performance Chart
BANCORP+ING Stock Performance Chart 900 800 700 600 500 Index Value FS 5 = 12/00 12/01 12/02 12/03 12/04 12/05 __ UnityBancorp, Ine. —*- NASDAQ Bank Index -~ NASDAQ Composite Index
Slide 22: History of 5% Stock Dividends
UNI TY ® History of 5% Stock Dividends BANCORP+*ING Announced Record Date Paid 5/26/2005 6/15/2005 6/30/2005 5/27/2004 6/15/2004 6/30/2004 1/27/2003 2/26/2003 3/12/2003
Slide 23: History of 5% Stock Dividends
UNI TY ® History of 5% Stock Dividends BANCORP+*ING Announced Record Date Paid 4/27/2006 6/16/2006 6/30/2006 5/26/2005 6/15/2005 6/30/2005 5/27/2004 6/15/2004 6/30/2004 112712003 2/26/2003 3/12/2003
Slide 24: Cash Dividends Declared
BANCORP* Cash Dividends Declared $0.10 // $0.05: $0.00 1202 1203 12/04 12/05, 1Q05 1.06
Slide 25: 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 26: Searchable text section of graphics
Searchable text section of graphics shown above 2006 [LOGO] Shareholders’ Meeting [GRAPHIC] [LOGO] Performance Ratios 2005 vs 2004 2003 2004 2005 $ Change % Change Net Income $ 4,583 $ 5,330 $ 6,210 $ 16.5 % Earnings Per Diluted Share $ 0.77 $ 0.83 $ 0.96 $ 0.13 15.7 % Return on Assets 1.04 % 1.10 %