Union Center National Bank

Union, NJ · Cert 6431

FDIC · 15 branches

Q2 2014

$1.7BAssets

$1.0BLoans

$1.3BDeposits

$181.9MEquity

Loan mix

Deposit mix

NIM

Market Position · New York-Newark-Jersey City, NY-NJ-PA · 2014 SOD (annual) · 0.1% share · #62 of 226 inst. · $1.3B of $1405.9B

3.6% Union

1.2% Morris

0.3% Bergen

0.1% Mercer

Earnings: ROA of 1.07%, down 18 bps year over year; NIM at 2.83%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.04%.
Funding: loans stand at 78.95% of deposits as of Q2 2014.

Return on Assets (quarter, annualized)

1.07%-18 bps YoY

Net Interest Margin (quarter, annualized)

2.83%+3 bps YoY

Efficiency Ratio (quarter, annualized)

51.47%+347 bps YoY

Tier 1 Leverage Ratio

n/a

Discrete quarter, annualized.

Metric	Q2 2013	Q3 2013	Q4 2013	Q1 2014	Q2 2014	YoY Δ	Trend
Earnings
Return on Assets	1.25%	1.28%	1.23%	1.08%	1.07%	-18 bps
Return on Equity	11.96%	12.38%	11.83%	10.28%	9.93%	-203 bps
Net Interest Margin	2.79%	2.85%	2.87%	2.78%	2.83%	+3 bps
Efficiency Ratio	48.01%	46.84%	47.97%	57.43%	51.47%	+347 bps
Non-Interest Burden	1.20%	1.18%	1.21%	1.49%	1.32%	+12 bps
Growth
Asset Growth (YoY)	6.97%	2.01%	2.66%	4.12%	3.77%	-321 bps
Loan Growth (YoY)	11.88%	9.94%	7.83%	12.20%	11.44%	-45 bps
Deposit Growth (YoY)	9.00%	1.63%	2.66%	4.47%	-0.47%	-948 bps
Asset Quality
Nonperforming Loans / Loans	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
Net Charge-Offs / Loans	0.01%	0.00%	0.09%	0.13%	0.04%	+2 bps
Allowance / Loans	1.13%	1.06%	1.08%	1.08%	1.08%	-5 bps
Allowance Coverage of NPLs	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Capital
Tier 1 Leverage Ratio	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Total Risk-Based Capital	12.63%	12.48%	12.90%	13.22%	13.32%	+69 bps
Equity / Assets	10.36%	10.35%	10.38%	10.69%	10.92%	+57 bps
Liquidity & Funding
Loans / Deposits	70.51%	72.83%	71.59%	73.70%	78.95%	+844 bps
Liquid Assets / Assets	9.24%	10.20%	13.94%	13.91%	15.45%	+621 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a