University Bancorp, Inc. · OTC:UNIB
University Bancorp — Investor Presentation (June 2021)
14 slides from University Bancorp's investor presentation, June 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 June 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 $697 million in assets as of June 30th, 2021. • UNIB has $70.8 million in book equity capital, $14.87 per fully diluted common share at June 30th, 2021. • UNI
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. • Our mortgage subservicing business currently generates an average monthly balance of $524.3 million of non-interes
Slide 5: Our Balance Sheet Breakdown – Average Assets
Our Balance Sheet Breakdown – Average Assets $600 $6.7 Avg Asset Composition (in millions) $500 $10.0 3.14% 0.12% Mortgage Warehouse 3.99% $400 $221.0 Non-earning assets 2.59% Interest-earning deposits $300 Portfolio Loans 3.25% Investments $135.3 $200 Loans Held for Sale Mortgage Servicing Rights $
Slide 6: Our Balance Sheet Breakdown – Average Liabilities
Our Balance Sheet Breakdown – Average $600 Liabilities $1.6 Average Yield % $500 $400 Long-term Borrowings 5.60% $408.2 Non-interest bearing deposits $300 Interest-bearing deposits 0.00% Non-interest bearing liabilities $200 Equity & Minority Interest 0.29% $100 $23.6 0.00% $32.5 $58.9 $- 0.00% 6/30
Slide 7: Mortgage Servicing – Fueling Growth
Mortgage Servicing – Fueling Growth • The increase in internal originations and organic growth of our sub-servicing clients has led our servicing book to Mortgages Serviced grow 25% from Q2 2020 – Q2 2021. Mortgage Unpaid 200,000 Principal Balance serviced & sub-serviced increased $9B 190,000 YoY, o
Slide 8: UNIB's Mortgage Origination Channels
UNIB’s Mortgage Origination Channels • UNIB’s Retail Mortgage Operations remain strong, originating a combined $1.1B loans 2021 YTD. Our pipeline indicates a slow down in originations from Q2 2020 highs, a decrease of approx. 13% vs. Q2 2021. Primarily due to rates rebounding from 2020’s record lows
Slide 9: UNIB's Retail Mortgage – A proven model
UNIB’s Retail Mortgage – A proven model Mortgage Origination Breakdown ($ 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% Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 AMS $12,
Slide 10: Virtuous Cycle of Funding Advantage
Virtuous Cycle of Funding Advantage $524.3 million of average monthly escrow deposits (T&I) $36.3 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 ▪ ULG the #1 Residential Lender with local offices in Washtenaw County (Ann Arbor), Michigan. Tied for #1 Residential Lender in Florida Panhandle ▪ U.S. Banker Magazine’s “Community Bankers of the Year” in 2006 ▪ Recipient of the American Bankers Association’s 2009 “Community Bankers
Slide 12: Valuation – Midwest Loan Servicing
Valuation – Midwest Loan Servicing ▪ Midwest’s earnings “run rate” through the 2nd quarter of 2021 is $9 million pre-tax per year. This is $1.90 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 businesses
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
University Bancorp — Investor Presentation (June 2021) on 6ix