University Bancorp, Inc. · OTC:UNIB
University Bancorp — Investor Presentation (September 2020)
13 slides from University Bancorp's investor presentation, September 2020
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 June 2020
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 $612.7 million in assets. • UNIB has $48.6 million in book equity capital, $9.33 per common share at September 30th, 2020. • UNIB's common stock is traded on
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 currently services over $29.7 billion in mortgage loans and have already exceeded $1.7 billion in originations ye
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. • Our mortgage subservicing business currently generates an average monthly balance of $548.8 million of non-interes
Slide 5: Our Balance Sheet Breakdown - Assets
Our Balance Sheet Breakdown - Assets $700.0 $6.7 $600.0 $35.5 3.33% $500.0 0.12% Mortgage Warehouse $251.1 4.91% Non-earning assets $400.0 Interest-earning deposits Portfolio Loans 3.53% $300.0 Investments $108.0 Loans Held for Sale 3.25% $200.0 $6.2 Mortgage Servicing Rights 3.70% $100.0 $190.3 Ave
Slide 6: Our Balance Sheet Breakdown - Liabilities
Our Balance Sheet Breakdown - Liabilities Average Yield % $500.0 $400.0 Non-interest bearing deposits $483.6 0.00% Interest-bearing deposits & $300.0 borrowings 0.83% Non-interest bearing liabilities $200.0 0.00% Equity & Minority Interest $18.7 0.00% $100.0 $60.1 $50.3 $0.0 9/30/2020 • UNIB’s low c
Slide 7: Mortgage Servicing – Fueling Growth
Mortgage Servicing – Fueling Growth • The increase in internal originations and organic growth Mortgages Serviced of our sub-servicing clients has led our sub-servicing book to grow 19% from Q3 2019 – Q3 2020. 160,000 • Our mortgage servicing business has an estimated 150,000 0.20% market share of a
Slide 8: UNIB's Mortgage Origination Channels
UNIB’s Mortgage Origination Channels • University Lending Group (“ULG”) • Government, Conventional & HELOC Mortgage Origination • #1 Residential Lender with local offices in Washtenaw County (Ann Arbor), Michigan • Tied for #1 Residential Lender in Florida Panhandle • Originated $638mm in 2019 and h
Slide 9: UNIB's Retail Mortgage – A proven model
UNIB’s Retail Mortgage – A proven model Mortgage Origination Breakdown ($ 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% Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 AMS $4,823 $12,890 $78,3
Slide 10: Virtuous Cycle of Funding Advantage
Virtuous Cycle of Funding Advantage Page 10
Slide 11: A Long Track Record of Excellence
A Long Track Record of Excellence ▪ U.S. Banker Magazine’s “Community Bankers of the Year” in 2006 ▪ Recipient of the American Bankers Association’s 2009 “Community Bankers of the Year” Award ▪ FDIC “Outstanding” rating for Community Service & Community Reinvestment, 2003-2009 ▪ As of 9/30/2020, Uni
Slide 12: Valuation
Valuation ▪ YTD through 9/30/2020, UNIB had net income of $20.0 million, or $3.85 per share. ▪ Midwest contributed $1.75 million in pre-tax income during the quarter. ▪ Midwest’s earnings “run rate” is currently $7.0 million pre-tax per year. This is $1.46 per share. ▪ Midwest’s business uses $5 mil
Slide 13: 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
University Bancorp — Investor Presentation (September 2020) on 6ix