University Bancorp, Inc. · OTC:UNIB
University Bancorp — Investor Presentation (December 2020)
13 slides from University Bancorp's investor presentation, December 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 December 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 $549 million in assets as of December 31st, 2020. • UNIB has $52.5 million in book equity capital (excluding Preferred Stock), $11.01 per common share at Dece
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 $31.8 billion in mortgage loans and exceeded $2.3 billion mortgage originations in 2020 .
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 $600 $7.2 $35.8 $500 3.32% 0.11% $400 $193.5 Mortgage Warehouse Non-earning assets 3.83% Interest-earning deposits $300 Portfolio Loans 3.48% $103.2 Investments $200 $5.7 Loans Held for Sale 2.82% Mortgage Servicing Rights 2.80% $100 $187.1 Average Yield% $0 $16.
Slide 6: Our Balance Sheet Breakdown - Liabilities
Our Balance Sheet Breakdown - Liabilities $1.6 Average Yield % $500 $400 Long-term Borrowings 5.28% $420.1 $300 Non-interest bearing deposits Interest-bearing deposits 0.00% Non-interest bearing liabilities $200 Equity & Minority Interest 0.32% $19.6 $100 0.00% $52.4 $55.9 0.00% $0 12/31/2020 • UNIB
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 23.2% from Q4 2019 – Q4 2020. 180,000 • Our mortgage servicing business has an estimated 170,000 0.21% market share of app
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 $638mm in 2019 and o
Slide 9: UNIB's Retail Mortgage – A proven model
UNIB’s Retail Mortgage – A proven model Mortgage Origination Breakdown ($ 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 AMS $4,823 $12,8
Slide 10: Virtuous Cycle of Funding Advantage
Virtuous Cycle of Funding Advantage $549 million of average monthly escrow deposits (T&I) $31.8 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 12/31/2020, University Bank’s 50
Slide 12: Valuation
Valuation ▪ Midwest’s earnings “run rate” based on the 4Q2020 result is $7.16 million pre-tax per year. This is $1.50 per share. ▪ Midwest contributed $1.79 million in pre-tax income during the final quarter of 2020. ▪ Midwest’s business uses $5 million of capital, leaving $47.5 million of capital a
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
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