University Bancorp, Inc. · OTC:UNIB
University Bancorp — Investor Presentation (March 2021)
14 slides from University Bancorp's investor presentation, March 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 March 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 $653 million in assets as of March 31st, 2021. • UNIB has $63.6 million in book equity capital, $12.07 per fully diluted common share at March 31st, 2021. • U
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 $34.3 billion in mortgage loans and have originated $549 million mortgages through the 1s
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 – Average Assets
Our Balance Sheet Breakdown – Average Assets $600 3.09% $7.3 Avg Asset Composition (in millions) $500 0.11% $71.3 4.51% $400 Mortgage Warehouse 2.37% $160.0 Non-earning assets 2.94% Interest-earning deposits $300 Portfolio Loans Investments 10.41% $114.2 $200 Loans Held for Sale $4.6 Mortgage Servic
Slide 6: Our Balance Sheet Breakdown – Average Liabilities
Our Balance Sheet Breakdown – Average $600 Liabilities $1.6 Average Yield % $500 $400 5.49% Long-term Borrowings $360.0 Non-interest bearing deposits $300 0.00% Interest-bearing deposits Non-interest bearing liabilities 0.31% $200 Equity & Minority Interest $20.3 0.00% $40.7 $100 0.00% $96.8 $- 3/31
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 servicing book to grow 28% from Q1 2020 – Q1 2021. 190,000 • Our mortgage servicing business has an estimated 180,000 170,000 0.23% market share
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 $299mm mortgages in
Slide 9: UNIB's Retail Mortgage – A proven model
UNIB’s Retail Mortgage – A proven model Mortgage Origination Breakdown ($ 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 Q4 2020 Q1 2021 AMS $4,8
Slide 10: Virtuous Cycle of Funding Advantage
Virtuous Cycle of Funding Advantage $538 million of average monthly escrow deposits (T&I) $34.8 billion of contract Internal warehouse lines subservicing rights ($2.2 billion of originations per annum) Monthly loan originations sold into market Page 9
Slide 11: Industry Awards
Industry Awards ▪ 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 3/31/2021, University Bank’s 500
Slide 12: Valuation – Midwest Loan Servicing
Valuation – Midwest Loan Servicing ▪ Midwest’s earnings “run rate” through the 1st quarter of 2021 is $8.4 million pre-tax per year. This is $1.77 per share. ▪ Midwest’s business uses $5 million of capital, leaving $58.6 million of capital allocated to the rest of our business units. These businesse
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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