University Bancorp, Inc. · OTC:UNIB
University Bancorp — Investor Presentation (December 2021)
14 slides from University Bancorp's investor presentation, December 2021
Slide 1: University Bancorp & University Bank Investor Presentation
University Bancorp & University Bank Investor Presentation Stephen Lange Ranzini President & CEO, University Bancorp ((734) 741-5858 ext 9226 * ranzini@university-bank.com www.university-bank.com/bancorp.htm December 2021
Slide 2: About University Bancorp
About University Bancorp • University Bancorp, Inc. (UNIB) is the holding company for University Bank, an Ann Arbor based community bank with $484 million in assets as of December 31st, 2021. • UNIB has $77 million in book equity capital, $15.75 per fully diluted common share at December 31st, 2021.
Slide 3: Our Business Model
Our Business Model • University’s business model includes substantial mortgage loan subservicing and loan origination operations combined with traditional community banking. • University’s Retail Mortgage Operations are designed to be sustainable and profitable, with a hyper focus on purchase, new c
Slide 4: What Our Business Model Provides
What Our Business Model Provides • Our business model provides UNIB with a low cost of funds which we believe to be an important competitive advantage compared with traditional banks. • Over the quarter our mortgage subservicing business generated an average monthly balance of $582 million of non-in
Slide 5: Our Balance Sheet Breakdown – Average Assets
Our Balance Sheet Breakdown – Average Assets $700 $5.7 Avg Asset Composition (in millions) $600 3.27% $93.3 0.17% $500 4.58% Mortgage Warehouse Non-earning assets $400 $185.4 2.10% Interest-earning deposits Portfolio Loans 3.62% $300 Investments $156.5 Loans Held for Sale $200 6.94% Mortgage Servici
Slide 6: Our Balance Sheet Breakdown – Average Liabilities
Our Balance Sheet Breakdown – Average Liabilities $700 Average Yield % $600 $1.5 $500 5.54% Long-term Borrowings $400 $411.8 Non-interest bearing deposits 0.00% Interest-bearing deposits $300 Non-interest bearing liabilities 0.34% Equity & Minority Interest $200 $19.3 0.00% $41.6 $100 $128.2 0.00% $
Slide 7: Mortgage Servicing – Fueling Growth
Mortgage Servicing – Fueling Growth • The increase in loan growth from internal originations and our sub-servicing clients has led our serviced loan Number of Mortgages Serviced count to increase 14% from Q4 2020 – Q4 2021. 200,000 Mortgage Unpaid Principal Balance serviced & sub- 190,000 serviced i
Slide 8: UNIB's Mortgage Origination Channels
UNIB’s Mortgage Origination Channels • UNIB’s Retail Mortgage Operations remain strong, originating a combined $2.08B loans in 2021. • University Lending Group (“ULG”) - Government, Conventional & HELOC Mortgage Origination • Originated $261mm in mortgages in Q4 2021, • Contributed $8.7 million in E
Slide 9: UNIB's Retail Mortgage – A proven model
UNIB’s Retail Mortgage – A proven model Mortgage Origination Breakdown ($ in thousands) $700,000 5.00% 4.50% $600,000 4.00% $500,000 3.50% $400,000 3.00% 2.50% $300,000 2.00% $200,000 1.50% 1.00% $100,000 0.50% $- 0.00% Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 AMS $97,
Slide 10: Virtuous Cycle of Funding Advantage
Virtuous Cycle of Funding Advantage $582 million of average monthly escrow deposits (T&I) $38 billion of contract Internal warehouse lines subservicing rights ($2 billion of originations per annum) Monthly loan originations sold into market Page 10
Slide 11: Industry Awards
Industry Awards ▪ ULG the #1 Residential Lender with local offices in Washtenaw County (Ann Arbor), Michigan. Tied for #1 Residential Lender in Florida Panhandle ▪ Bank Director magazine selected us as a top performing U.S. bank. We are very proud to be honored among all banks in the U.S. as having
Slide 12: Valuation – Midwest Loan Servicing
Valuation – Midwest Loan Servicing ▪ Midwest Loan Servicing generated $7.4MM in Pre-Tax Income for 2021. ▪ Midwest’s business uses $5 million of capital, leaving approx. $68 million of capital allocated to the rest of our business units. These businesses have the ability to earn more than $21 millio
Slide 13: Valuation Summary – Year End 2020
Valuation Summary –Year End 2020 Page 13
Slide 14: Questions?
Questions? •FAQ list at www.university-bank.com/bancorp.htm •Press Releases •Newspaper & Magazine Articles •Comprehensive Data •Contact me: Stephen Lange Ranzini, President & CEO: ((734) 741-5858 xt 9226 * ranzini@university-bank.com CAUTIONARY STATEMENT: This Executive Summary contains certain forw
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