University Bancorp Sets Annual Meeting Date, Declares Dividend & Provides Business Update
ANN ARBOR, MI / ACCESSWIRE / December 1, 2020 /University Bancorp, Inc. (OTCQB:UNIB) today announced that its 2020 Annual Shareholder Meeting has been scheduled for January 6, 2021, beginning at Noon EST via a telephone conference call, due to pandemic restrictions currently in force in Michigan. Shareholders of record as of the close of business December 11, 2019 will be entitled to vote. The Company will mail notices of the Annual Shareholder Meeting to all shareholders. As a measure to economize and save the shareholders money, no proxies will be solicited for the meeting by the company. Shareholders will vote at the Annual Shareholder Meeting to elect directors for the coming year. No other business is anticipated to be voted on, and shareholders will have the opportunity to engage management in a question and answer period following a short presentation. If you wish to attend please RSVP in advance.
The Company's Board of Directors declared a cash dividend of $0.15 per share on its common stock. The following dates are applicable:
- Record Date: December 12, 2020
- Payable Date: January 12, 2021
This dividend represents a dividend at a quarterly rate of $0.05 per share with respect to the 3rd quarter of 2020, the 4th quarter of 2020 and the 1st quarter of 2021. The next regular quarterly dividend is scheduled to be paid in April 2021 and is expected to be $0.05 per share.
Growth continues at Midwest Loan Services and loans serviced and subserviced as of October 31, 2020 grew to 162,099, up from 136,457 at 12/31/2019, up 18.8%, representing an annual growth rate of 22.5%. The third quarter of 2020 pre-tax income from Midwest Loan Services was $1.75 million, or a $7 million per year run rate, or $1.47 per share.
As a result of share buybacks at a price of $9.05 per share, the number of shares of common stock of the Company outstanding has declined to 4,765,516. An additional 25,000 shares were purchased at the same price and are in the process of settling.
Pre-tax income excluding minority interest income at University Bank in October 2020 was $4,064,334 and in November 2020 is estimated to be $2,900,000, as volume of applications and lock-ins in our mortgage business has slowed due to seasonal factors. Mortgage origination gain on sale margins remain level.
The Company posted an updated Investor Presentation PowerPoint as well as a new one page summary document on its investor relations website. Shareholders and investors are encouraged to refer to the financial information including the investor presentations, detailed income statements and balance sheets, 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 $30.5 billion in financial assets for over 163,000 customers, and our over 500 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 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;
- UIF, a faith-based banking firm based in Southfield, MI;
- Community Banking, based in Ann Arbor, MI, which provides traditional community banking services in the Ann Arbor area;
- Midwest Loan Solutions, a reverse residential mortgage lender and warehouse lender based in Southfield, MI;
- Ann Arbor Insurance Centre, an independent insurance agency based in Ann Arbor.
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, pre-tax income and net income, budgeted income levels, the sustainability of past results, mortgage origination levels and margins, 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. 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
SOURCE:University Bancorp, Inc.
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