ANN ARBOR, MI / ACCESS Newswire / April 20, 2026 / University Bancorp, Inc. (OTCQB:UNIB, or "UNIB") announced that it had audited net income of $9,971,303 in 2025, of which $9,022,486 was attributable to UNIB common stockholders, $1.70 per share on average shares outstanding of 5,169,518 for the year, versus audited net income of $11,818,099 in 2024, of which $10,467,383 was attributable to UNIB common stockholders, $2.02 per share on average shares outstanding of 5,169,518 for 2024.

For 2025, UNIB had a return on equity attributable to common stock shareholders of 9.7% on initial equity attributable to common stock shareholders of $93,590,773. Return on equity attributable to common stockholders in 2024 was 12.5% on initial equity of $83,970,376. Shareholders' equity attributable to UNIB common stock shareholders at December 31, 2025 was $100,291,529 (excluding minority interest of $12,910,358 and convertible preferred stock with a liquidation value of $25,000,000), or $19.40 per share, based on common shares outstanding at December 31, 2025 of 5,169,518, up from $18.10 per share at the end of 2024. On a fully diluted basis, shareholders' equity attributable to UNIB shareholders at December 31, 2025 was $19.33 per share.

In 2025, the board of UNIB declared $0.40 per share of dividends, paying a quarterly dividend of $0.10 per share. This $0.10 per share dividend is intended to be paid quarterly going forward.

While UNIB's overall revenue grew 9.8% in 2025 versus the prior year to a new record high of $137.5 million, net income in 2025, 2024, 2023 and 2022 was negatively impacted by low profitability industrywide in the residential mortgage origination business, which impacted University Bank's mortgage origination units. The Mortgage Bankers Association reports that overall, the industry in the U.S. earned just 20.5 basis points on all residential mortgages originated in 2025.

In addition, due to a shift in market opportunities, with the yields on mortgage loans rising sharply above the industry's cost of funds, the bank has retained more of its over a billion dollars of annual mortgage originations in recent years (the bank originated $1.2 billion of mortgage loans in 2025, $1.1 billion in 2024, $1.2 billion in 2023 and $1.5 billion in 2022), with portfolio loans held for investment at University Bank rising from $103.8 million at 12/31/2020 to $733.8 million at 12/31/2023, $777.6 million at 12/31/2024 and $883.3 million at 12/31/2025. This has led to a rapid rise in the bank's net interest margin to $3.4 million per month from the 2020 level of under $1 million a month. In the short term, however, the bank did not earn upfront gains on sale from these $770 million in residential loans that went into portfolio and were not sold into the secondary market, and incurred all the expense of originating those mortgage loans, which was about $24.2 million, negatively impacting income (the industry average cost of originating a mortgage loan according to the Mortgage Bankers Association is running about 3.35% of the loan balance, however our cost is a bit lower at 3.14%). The residential mortgages held in portfolio are with few exceptions adjustable-rate mortgages, either 1^st Mortgage Home Equity Lines of Credit that adjust at a spread over an index every six months, or 7/6 adjustable-rate mortgages that have a fixed rate for 7 years and then adjust every six months. The latter have been match funded with institutional deposits that mature in 4-5 years, and which cannot be withdrawn prior to maturity. Management moderated growth in portfolio loans starting in 2024, to keep University Bank's total assets under $1 billion at 12/31/2024, to avoid incurring significant extra regulatory costs in 2025, as under the then applicable regulation, once a bank's assets rose above $1 billion as of a year-end, substantially additional regulations must be adhered to by a bank. However, this regulatory cap was raised to $5 billion in 2025, so management allowed assets at University Bank to rise past the $1 billion in assets level.

President Stephen Lange Ranzini noted, "Considering the 30-year low in mortgage origination units nationwide, our 2025 results were outstanding. UNIB passed the $100 million in shareholders equity milestone for the first time. We have put into place several key projects and acquisitions that should result in higher earnings in 2026 and future years. University Bank is now licensed to originate first and second mortgage loans in all 50 states and the District of Columbia, and we have all the compliant document sets built for our whole suite of first mortgage origination products in every state nationwide, except for forward mortgages in Alaska and Hawaii, which we could easily build in a few weeks, and in addition we have not built a 1^st Mortgage HELOC product for Texas, which has unique legal restrictions. The management team is also working on building and rolling out a second mortgage suite of products for sale to the secondary market for all states except Alaska, Hawaii and Texas."

In 2023 UNIB opted to be designated as a Financial Holding Company, which gives us a greater range of investment and business development options. We used this authority in early 2023 to establish a Captive Insurance Company owned by UNIB, chartered in Washington DC, Crescent Assurance, PCC. This firm was profitable in its first three years of operation, having earned cumulative net income of $2.4 million on our original investment of $250,000, including net income of $ 973,424 in 2025. University Bank's insurance agency subsidiary, Ann Arbor Insurance Centre, had another record year in 2025, and increased its insurance revenue 8.6% to $2.16 million, its EBITDA to $547,437, up 3.5%, and its estimated value rose to $5,945,164.

In 2025 we expanded our wealth management business via University Bank's acquisition of additional ownership of Credit Union Trust, increasing our ownership from 12.5% to 49.999% for a total purchase price of $3.375 million. CU Trust increased its Assets Under Management at 12/31/2025 to $137.1 million from $105.7 million at 12/31/2024, and continues to grow towards the critical mass required to pass the break- even level, which is currently about $180 million. Hyrex Servicing, LLC, our mortgage wealth management arm continues to seek its initial large institutional money management client to formally launch its wealth management business.

Lastly, UIF, UNIB, University Bank and their subsidiaries and divisions have regulatory approval and are finalizing steps to launch additional products and product expansions in 2026. We closed on a small acquisition of a loan origination business to expand UIF, and also have applied to the Federal Reserve to acquire a small national bank based in the Los Angeles area, which operates nationwide and which we intend to use as the vehicle for our faith-based subsidiary, UIF, going forward.

We believe that going forward customer retention will be the key driver of success in the mortgage origination business. We have assembled the ability to cross sell all financial services products to our customers, including banking, lending, insurance and wealth management, to maximize loyalty and thereby, the net present value of every customer relationship. Most of our business units have Google Ratings of 4.9 out of 5.0 Stars due to focus on providing quality customer service. We focus this cross-selling on niche financial services businesses targeting specific customer segments, rather than purely the mass market.

In addition to the shift discussed above to holding more residential loans in portfolio instead of selling them on the secondary market, results in 2025 were negatively impacted by one item, which only partially offset two unusual positive factors which had a net overall positive impact of $1,481,586, before income taxes:

Unusual expenses:
1. The value of the hedged mortgage origination pipeline fell $216,812 as the amount of locked loans at year-end 2025 fell versus the level at year-end 2024.

Unusual gains:
2. Management booked a valuation gain for our Mortgage Servicing Rights of $1,009,198;
3. Management decreased the allowance for credit losses by $689,200;

Results in 2024 were negatively impacted by two items, partially offset by an unusual positive factor which had a net overall positive impact of $686,396, before income taxes:

Unusual expenses:
1. Management booked an allowance for credit losses of $674,635;
2. The value of the hedged mortgage origination pipeline fell $51,105 as the amount of locked loans at year-end 2024 fell versus the level at year-end 2023.

Unusual gains:
3. Management booked a valuation gain for our Mortgage Servicing Rights of $1,412,136;

During late 2022 and early 2023, UNIB issued $28 million of subordinated debt. The subordinated debt was issued to facilitate the change in strategy to expand University Bank's balance sheet with additional portfolio loans. The subordinated debt, which matures 1/31/2033, has interest for the first five years fixed at 8.25% and floats at a variable rate of 4.87% over SOFR for the second five years, however UNIB entered into an interest rate swap agreement which effectively fixes the interest rate for the second five years of the term at 8.08%.

In October 2024, UNIB issued $15 million of senior unsecured debt. The senior unsecured debt, which matures 1/31/2030, has interest fixed at 9.25%. A second interest rate swap agreement for $15 million was entered into in 2025 to hedge the refinancing risk of the senior bond which effectively fixes the interest rate for the second five years for the five years beginning 1/31/2030.

At 12/31/2025 cash & equity investment securities at UNIB, available to meet working capital needs and to support investment opportunities at University Bancorp were $53.6 million. UNIB also has a $12.5 million line of credit available with no balance currently drawn. This line of credit matures in February 2027, and bears interest at Prime Rate.

A portion of UNIB's working capital has been invested in a portfolio of publicly traded investments concentrated in three large investments. The three largest investments at 12/31/2025 were:

• Currency Exchange International (Symbol CURN), a company that specializes in foreign exchange, of which we now own 762,339 shares, 12.82% of the currently outstanding shares of common stock, at an average cost of $13.38 per share;

• Pulsar Helium (Symbol PSRHF), of which we now own 9,035,435 shares, 4.88% of the currently outstanding shares of common stock, at an average cost of $0.534 per share. Pulsar is developing what may be North America's largest reservoir of Helium-4, in Minnesota's Iron Range region, and a second major reservoir of Helium-4, in Greenland. Pulsar's Minnesota reservoir also contains the only known commercial reservoir of Helium-3 in the World, a very useful substance currently worth about $20 million per kilogram.

• A portfolio of put options on the following indices: S&P500, KRE (S&P 500 Banks) & XLF (S&P 500 Banks, Shadow Banks, Insurance Companies & REITs) as well as on one large regional bank that we have strong concerns about, which if it fails will negatively impact our loan portfolio in Michigan. UNIB's put option portfolio was worth $3.2 million at 12/31/2025.

Due to a conservative credit culture, University Bank has had net recoveries on net loan charge-offs over the past 16 years. Over the past two economic cycles, the following loan provisions and charge-offs (in $'000s) were sustained by University Bank:

University Bank has engaged an outside vendor to perform Stress Testing analysis and these tests assume a severely adverse (depressionary) national economic scenario worse than the most recent business depressions that we have experienced, in which we assume 10% unemployment, 8.9% drop in GNP, a 33% drop in residential real estate prices and a 30% drop in commercial real estate prices and that these prices never recover. Under this scenario we lose $17.0 million in total loan losses over the entire economic cycle, a fraction of our Tier 1 Capital, and under this scenario, with sharply falling interest rates, the bank is likely to see pre-tax earnings rise sharply (however that rise in income is not modeled to be conservative). During the pandemic the bank was earning $1 million pre-tax per week due to high mortgage origination gain on sale margins and the record level of mortgage origination volumes. This credit risk is moderated by the existing allowance for loan losses of $4.4 million. Under this stressed depressionary economic scenario over the entire cycle the stress test projects that the bank's Tier 1 Capital will fall by $22.3 million, and the bank's Tier 1 Capital Ratio would drop to 7.9%. The stress test does not assume that UNIB injects additional capital into University Bank from UNIB's $53.6 million of cash and securities.

The Bank currently has $14.6 million of office building loans, of which a small amount, mostly medical offices, are leased to third parties. All of the Bank's commercial real estate loans have guarantors capable of carrying the loan if the building in future periods suffers from negative cash flow.

At 12/31/2025, we had the following with respect to delinquent loans (including both delinquent portfolio loans and delinquent loans held for sale):

• Delinquent 30 Days to 59 Days, $5,686,461;

• Delinquent 60 Days to 89 Days, $1,354,294;

• Delinquent Over 90 Days & on Non-Accrual, $4,223,836;

• Total non-residential delinquent loans were $594,136;

• There was $506,636 foreclosed other real estate owned at year-end, three residential homes.

The allowance for loan losses stood at $4,412,305 or 0.50% of the amount of portfolio loans, excluding loans held for sale. Substandard assets including loans held for sale rose by $5,690,449 during 2025 to $10,773,449, increasing to 9.5% of Tier 1 Capital at 12/31/2025 versus 5.1% of Tier 1 Capital at 12/31/2024.

Excluding goodwill & other intangibles related to the acquisition of Midwest Loan Services and Ann Arbor Insurance Center, net tangible shareholders' equity attributable to University Bancorp, Inc. common stock shareholders was $99,624,673 or $19.27 at 12/31/2025, up from $92,951,023 or $17.98 at 12/31/2024. Please note that we do not see this statistic as particularly useful or meaningful, as our assessment of the value of Midwest Loan Services and Ann Arbor Insurance Centre is far above book value plus the related goodwill and intangibles.

Unaudited net income was $2,877,012 for the three months ended December 31, 2025 or $0.56 per share on average shares outstanding of 5,169,518 for the period, versus unaudited net income of $2,553,410 for the three months ended December 31, 2024 or $0.49 per share on average shares outstanding of 5,169,518 for the same 2024 period.

Total Assets of University Bank at 12/31/2025 were $1,109,845,000 versus $1,132,193,000 at 9/30/2025, $1,102,792,000 at 6/30/2025, $1,002,676,000 at 3/31/2025, $956,188,000 at 12/31/2024, $971,251,000 at 9/30/2024, $996,681,000 at 6/30/2024, $940,473,000 at 3/31/2024, and $931,631,250 at 12/31/2023.

The Tier 1 Leverage Capital Ratio at 12/31/2025 was 10.12% on net average assets of $1,126,702,000, from 10.24% at 9/30/2025 on net average assets of $1,103,461,000, 10.09% at 6/30/2025 on net average assets of $1,029,696,000, 10.25% on net average assets of $970,658,000, 10.40% at 12/31/2024 on net average assets of $959.8 million, 10.33% at 9/30/2024 on net average assets of $967.3 million, 10.18% at 6/30/2024 on net average assets of $945.1 million, 10.02% at 3/31/2024 on net average assets of $918.6 million, and 10.06% at 12/31/2023 on net average assets of $882.5 million.

Common Equity Tier 1 Capital at 12/31/2025 was $113,974,000, at 9/30/2025 was $112,973,000, at 6/30/2025 was $103,865,000, at 3/31/2025 was $99,453,000, at 12/31/2024 was $99,736,000, at 9/30/2024 was $99,903,000, at 6/30/2024 was $96,202,000, at 3/31/2024 was $92,013,000, and at 12/31/2023 was $88,736,000.

Other key statistics as of 12/31/2025:

*Using 2025, 2024, 2023, 2022, 2021, 2020 and 2015 revenue which was $138,747,664, $125,261,596, $105,568,196, $94,077,751, $133,175,856, $136.991,511 and $43,644,425, respectively.

^#UNIB only current assets divided by 12-month projected cash expenses.

⁺Calculated as: (non-interest expense/(net interest income + non-interest income))

^xBased on last sale of $21.63 per share.

Treasury shares as of 12/31/2025 were 37,381.

The 2025 audited financial statements are available on UNIB's website at: https://www.university-bank.com/wp-content/uploads/2026/04/Annual-Report-2025.pdf.

Shareholders and investors are encouraged to refer to the financial information including the investor presentations, audited financial statements, strategic plan and prior press releases, available on our investor relations web page at: http://www.university-bank.com/bancorp/. A detailed income statement, balance sheet and other financial information for UNIB and University Bank as of 12/31/2025 is available here:

https://www.university-bank.com/wp-content/uploads/2026/02/4Q2025-UNIB-Detailed-Financial-Information.pdf.

About UNIB

Ann Arbor-based University Bancorp is a Federal Reserve regulated financial holding company that owns:

• 100% of University Bank, a bank based in Ann Arbor, Michigan;

• 100% of Crescent Assurance, PCC, a captive insurance company licensed in Washington DC; and

• 100% of Hyrex Servicing, a master mortgage servicing firm, based in Ann Arbor, Michigan.

In addition, UNIB recently announced that it had agreed to purchase Bank of Whittier, N.A. (BOW) to expand its faith-based banking business.

University Bank together with its Michigan-based subsidiaries, holds and manages a total of over $35 billion in financial assets for over 180,000 customers, and our 530 employees make us the 5th 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 quality, creative and innovative services. Founded in 1890, University Bank® is the 15th oldest bank headquartered in Michigan. We are 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;

• Community Banking, based in Ann Arbor, MI, which provides traditional community banking services and wealth management;

• Ann Arbor Insurance Centre, an independent insurance agency based in Ann Arbor, MI.

• Mortgage Warehouse Lending, a mortgage warehouse lender based in Southfield, MI.

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, future profitability, efficiencies and economies of scale from the merger, the sustainability of past results, future products, valuations, 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. The BOW transaction is subject to receipt of all necessary regulatory approvals. We undertake no obligation to update any information or forward-looking statement.

Contact: Stephen Lange Ranzini, President and CEO
Phone: 734-741-5858, Ext. 9226
Email: ranzini@university-bank.com

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SOURCE: University Bancorp, Inc.