Unity Bancorp, Inc. · NASDAQ:UNTY

Unity Bancorp — Super Community Bank Conference 2006

27 slides from Unity Bancorp's conference presentation, Nov 6, 2006

  1. Slide 1: Super Community Bank Conference Nov 6-7 2006

    Super Community Bank Conference Nov 6-7 2006

  2. Slide 2: Forward-Looking Statement

    UNITY® BANGORP+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

  3. Slide 3: Unity Company Profile

    UNITY® BANGORP+ING Unity Company Profile * State Chartered - Opened 1991 * Assets of $672 million * Deposits of $557 million * 14 branches, headquartered in Clinton, NJ * Strategic commercial lending focus + Nationally recognized SBA lender

  4. Slide 4: Total Assets

    UNITY® _ BANCORP*ING — Total Assets Jn millions 672 650 G14 467 3 356 373 255 173 || 96 '97 '98 '99 ‘00 ‘01 ‘02 03 04 ‘05 "9/06

  5. Slide 5: Milestones

    UNITY® BANGORP+ING Milestones Unity recorded record profits, YTD $4.9 million 10th Consecutive year of SBA awards — Bronze award from the State of New York 2005 — Gold award from the State of New Jersey 2005 — 33rd largest SBA Lender in the United States — 8th largest SBA Lender in the State of New

  6. Slide 6: Performance Ratios

    BANCORP? Performance Ratios QID YID 2004 2005 | 9/30/06 | 930/06 Earnings Per Diluted Share $083 $096] $023) $071 Retum on Assets 110% 1.10%] 0.97%] — 1.02% Retum on Common Equity 18.32% 16.29% | 15.00%] 15.54% Efficiency Ratio 64.51% 61.53%| 65.48% | 65.29%

  7. Slide 7: BANCORP*ING

    UNITY® BANCORP*ING

  8. 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

  9. Slide 9: Experienced Management Team

    BANGORP*ING Experienced Management Team Name Title Years Banking Experience Jim Hughes, CPA President and CEO 4 Alan Bedner, CPA Executive VP, CFO 13 Mike Downes Executive VP, CLO 21 John Kauchak Executive VP, CRO 26 Kelly Stashko Executive VP, CIO 21

  10. Slide 10: Prudent Credit Culture

    UNITY® BANGORP+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

  11. Slide 11: Strategic Initiatives for 2007

    UNITY® BANCORP+ING Strategic Initiatives for 2007 + National SBA Program ¢ Sale of Non Bank Products in Branch Network ¢ Expansion of Mortgage Department ¢ Development of Internet Bank Channel * Remote Deposit Capture

  12. Slide 12: Financial Presentation

    BANCORP*ING Financial Presentation

  13. Slide 13: Income Statement

    BANCORP¢I 3 Income Statement Jn thousands 9/30/2006 % 2003 2004 2005 |2005YTD 2006¥TD _ Change Net interest income $ 17,867 $ 19158 $ 22234 |$ 16267 $ 13,030 10.874) Provision for loan losses 1,400 1,175 1,850 1,325 950 -28.3% Non-interest income 8,343 7,628 8,190 6,118 5,892 3.7% Non-interest expen

  14. Slide 14: Total Assets

    | BANCORP+ING © Total Assets Jn millions 12/01 1202 1203 12/04 1205 ome

  15. Slide 15: Total Loans

    “BANCORP*ING Total Loans Jn millions Cor 11.2% 12/01 1202 12/03 12/04 12/05 09/06

  16. Slide 16: Loans by Type

    BANCORP¢ING Loans by Type 12/31/01 9/30/06 a a Commersial & SBA 63.4% Res Mortgage 26.8% [i consumer 9.8% Commercial 78.0% —-ResMorigage 12.4% [i consumer 9.6%

  17. Slide 17: Asset Quality

    Asset Quality BANCORP? Nonperforming assets ALLL/Total Loans ALLLINPL NPL/Total Loans ‘Net Charge Off Ratio

  18. Slide 18: Net Interest Margin

    UNITY® BANCORP+ING Net Interest Margin 425% 409% 428% 4.18% 4.17% ETI 3.75% - a Bae 37786 “aie 5.44% 356% 359% 3.25% aysee 284% 2001 2002 2003 2004 2005 9/06 YID __Net Interest Spread —-— Margin

  19. Slide 19: Total Deposits

    _ BANGORP*ING — Total Deposits Jn millions ioe = EI | 12/01 12/02 12/1/03 1204 12/05 9/30/06

  20. Slide 20: Shareholders' Equity

    Shareholders’ Equity Jn millions 11.5% 12/02 12103 12/04 12/05 9/30/2006

  21. Slide 21: Capital Ratios

    UNITY® BANCORP+ING Capital Ratios 14.00% 12.32% 12.53% 12.39% 12.91% 12.00% 10.00% 8.00% 6.00% 400% 12/01 12/02 12/03 12/04 1205 9/30/2006 ___ Leverage -+-TierI Total Capital

  22. Slide 22: Key Investment Appeals

    BANCORP+¢ING Key Investment Appeals

  23. Slide 23: Key Investment Appeals

    UNITY® BANGORP+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

  24. Slide 24: Ratios

    Ratios BANCORP? Quarter September 30, 2006 Unity Peer* Performance Ratios @4) ROAA 0.97 072 ROAE 15.00 7.89 ‘Net Interest Margin 3:78 3.81 Efficiency Ratio 65.48 69.61 Loans / Deposits 99.49 81.48 Market Ratios Price/Eamings (x) 15.75 25.32 PricelBook (14) 220.80 188.61 Dividend Yield @) 131 117

  25. Slide 25: Stock Price

    Stock Price $17 $15 $13 $11 $9 $7 $5 $3 15.28 435 12/31/01 12/31/02 12/31/03 12/31/04 12/31/2005 9/30/2006 Market Price --— Book Value

  26. Slide 26: Slide 26

  27. Slide 27: [LOGO OF UNITY BANCORP INC]

    [LOGO OF UNITY BANCORP INC] Super Community Bank Conference Nov 6 - 7 2006 [LOGO OF UNITY BANCORP INC] 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 fin

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