For Immediate Release
Ann Arbor, Michigan, February 1, 2016, — University Bancorp, Inc. (OTCQB: UNIB) today announced that its board of directors has declared the Company’s first dividend to its common shareholders, in the amount of $0.107 per share, a payment of approximately $546,000 in total on the 5,102,844 shares currently outstanding.
- The ex-dividend date will be as of the close of business today, February 1, 2016;
- The record date will be close of business, February 3, 2016; and
- The payable date will be February 10, 2016.
President & CEO, Stephen Lange Ranzini stated, “Now that our Company is debt free and our wholly-owned bank subsidiary, University Bank, is overcapitalized based on our semi-annual CCARS style capital stress tests, the board of directors of the Company has opted to pay a dividend using a portion of the excess capital held by the organization. This inaugural dividend represents the first time since the bank holding company’s acquisition of University Bank in July 1988 that a dividend is being paid to our shareholders.”
“27 years ago when I joined University Bank, it had just 21 employees & managed just $34 million in assets for about 3,000 customers. Over the past 27 years under our ownership and leadership University Bank has grown rapidly and today we have 336 employees, manage over $18 billion in assets & serve over 112,000 customers. The initial shareholders’ investment in the Company of $1.5 million of equity in 1988 now has a market value of $36 million and a private market value of an even greater amount.”
“We are proud to be noted by American Banker newspaper as 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. University Bank’s five year average Return on Equity is 15.1%, for the past 12 months it has been 27.9%, and annualized return on equity in the first nine months of 2015 was 38.1%. Our 5-year annual average revenue growth has been 20.0% and our revenue growth over the past year has been 16.7%.”
“While our growth opportunities remain compelling, and we could have reinvested these funds in high Return on Equity opportunities for the benefit of our shareholders, the board has decided to return a portion of net income in the form of dividends going forward to reward our loyal shareholders so that they may share in the profitability of the Company without being forced to sell their shares. Barring unforeseen events, additional dividends are likely to be declared in 2016 as the year progresses.”
Shareholders and investors are encouraged to refer to the financial information including the audited financial statements, strategic plan and prior press releases, available on our investor relations web page at: http://www.university-bank.com/bancorp/.
Ann Arbor-based University Bancorp owns 100% of University Bank which, together with its Michigan-based subsidiaries, holds and manages a total of over $18 billion in financial assets for over 112,000 customers and our 336 employees make us the 9th largest bank based in Michigan. University Bank is an FDIC-insured, locally owned and managed community bank, and meets the financial needs of its community through its creative and innovative services. Founded in 1890, University Bank® is proud to have been selected as the “Community Bankers of the Year” by American Banker magazine and as the recipient of the American Bankers Association’s Community Bank Award. University Bank is a Member FDIC. The members of University Bank’s corporate family, ranked by their size of revenues are:
- University Lending Group, a retail residential mortgage originator based in Clinton Township, MI;
- Midwest Loan Services, a residential mortgage subservicer based in Houghton, MI;
- UIF, a faith based banking firm based in Farmington Hills, MI;
- Community Banking, based in Ann Arbor, MI, which provides traditional community banking services in the Ann Arbor area;
- Ann Arbor Insurance Centre, an independent insurance agency based in Ann Arbor.