Why invest in University Bancorp?
University Bank is focused on profitable growth through niche financial services provided locally, nationally and via the Internet. These niches are Community Banking, Credit Unions, Islamic Finance and Federal Housing Administration Lending. Our niche businesses have become important profit drivers and represented 94.6% of our overall revenue in 2014.
American Banker newspaper noted that University Bank was the second most profitable publicly traded community bank in the U.S. based on our 18.75% annual average Return on Equity over the period 2012 to 2014. Annualized return on equity in the first half of 2015 was 43.5% and over the past twelve months it has been 27.7%. Our 5-Year Average return on equity has been 15.6%.
University Bancorp’s revenue growth has been rapid over the past several years. Revenue in the first half of 2015 was 23.6% above the prior year level. Our 5-year annual average revenue growth has been 19.6%:
The credit union industry is gaining market share from all other financial institutions. University Bancorp offers investors one of the few ways to invest in this ongoing growth of the credit union sector. Our Midwest Loan Services subsidiary grew 25% per year on average for the past thirteen years in the value of mortgage loans subserviced to over $16.7 billion. Midwest is a business process outsourcer of mortgage services to 5.3% of the 6,206 credit unions in the U.S.
The American Bankers Association, through its Corporation for American Banking subsidiary, has exclusively endorsed Midwest to provide residential mortgage subservicing services to member banks and their borrowers nationwide. Midwest is known for friendly, responsive service and industry-leading technology that help lenders retain customers, reduce costs and ensure regulatory and operational compliance. Midwest’s mortgage customers have 14x fewer complaints than the industry average according to the Consumer Financial Protection Bureau’s complaint database.
Islamic Finance serves individuals who wish to avoid paying or receiving interest while engaged in banking, including the 2.7 million Muslim citizens here in the U.S.
Federal Housing Administration Lending is the fastest growing sector of the residential mortgage business in the U.S., having grown from 3% of all new residential mortgage originations in 2006 to over 20% today.
Key Manager Statement
“We are a leader in our industry with profitable and dynamically growing businesses, well positioned for the future. Our bank has a market capitalization today of only $34 million. Learn more about our story, our track record of successful innovation and what the future holds for us.”
Stephen Lange Ranzini
President & CEO
- Shares Outstanding: 5,102,844
- Shares in Free Float: 1,409,770
Investor Relations Contact:
Stephen Lange Ranzini,
President & CEO
2015 Washtenaw Avenue,
Ann Arbor, Michigan 48104
Phone: (734) 741-5858 Ext 9226
Fax: (734) 741-5859
CAUTIONARY STATEMENT: This press release contains certain forward-looking statements that involve risks and uncertainties. Forward-looking statements include, but are not limited to, statements concerning future growth in assets and net income, the sustainability of past results, and other expectations and/or goals. Such statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, economic, competitive, governmental and technological factors affecting our operations, markets, products, services, interest rates and fees for services. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
Required Regulatory Statement on Risk: The securities of University Bancorp have NO FDIC Insurance and carry RISK OF LOSS: The securities are not insured by the FDIC or the Bank. The securities are subject to investment risks, including the possible loss of the principal amount invested.