University Bank's Chairman, Charles McDowell, Dead at 75

ANN ARBOR, MI--(Marketwire - Dec 30, 2011) - University Bancorp, Inc. (OTCQB: UNIB) (PINKSHEETS: UNIB) announced today that Charles McDowell, 75, the chairman of both University Bank and University Bancorp, Inc., has died. Mr. McDowell also served as the Chairman of the bank's internal audit committee and as a member of the bank's compensation committee. The bank's board has elected director Alma Wheeler Smith as its new Chair and director Willie Powell to the newly created position of Vice Chair. Director David Canter was appointed to the bank's compensation committee and Vice Chair Willie Powell was also appointed Chair of the bank's internal audit committee.

President & CEO Stephen Lange Ranzini noted, "Chuck McDowell was an excellent and gracious man who started his career in banking as an FDIC examiner and among his accomplishments he was:

• CEO of a community bank in northern Michigan, Northwestern State Bank, East Jordan, Michigan;
• President of the bankers organization now known as the Community Bankers of Michigan; and
• SVP and one of the four members of the management team that ran the most successful Business & Industrial Development Company (BIDCO) in Michigan, Northern Michigan BIDCO. During the seven years that it operated, Northern Michigan BIDCO earned University Bank a 35% annual return on its shareholder investment, rescued 310 jobs and created 415 base economic jobs, funded twenty-seven companies with $16,596,800, and leveraged those funds for a total investment in these Michigan businesses of $275,311,800.

"Ethical, level headed, intelligent, available on a moment's notice, he was an exemplary Chairman of the Board and will be missed by all." Mr. McDowell is survived by his wife of 53 years, Kay McDowell, daughters Theresa Thomas, Mary Schlax, and seven grandchildren. His daughter, Barbara Nelson, predeceased him. Memorial services are scheduled for June 23, 2012 in his hometown of Elk Rapids, Michigan.

Mr. Ranzini also announced that, "With the tragic accident earlier in the month which took the life of Director David Little, and the recent resignation of Director Nicholas Fortson who relocated out of the area, the bank's board has appointed a director search committee to nominate three new directors of the bank." The members of the search committee are former Congressman Joe Schwarz; Bank President, CEO & Director Stephen Lange Ranzini; and Michael Talley, who serves as a director of the bank holding company and also as its lead independent director and chair of its audit committee. Among the initial actions of the search committee and at its recommendation, Alma Wheeler Smith was elected as a director of University Bancorp, Inc. to fill one of two vacancies on that board of directors.

University Bank President & CEO Stephen Lange Ranzini commented, "We are honored to have such a talented and capable individual as former Senator Smith to serve as the chair of our board of directors. Her experience with the appropriation and oversight of the state's $40 billion budget will be invaluable to us." Alma resides in Salem Township.

Alma Wheeler Smith grew up with community activist parents, Dr. Albert and Emma Wheeler. Dr. Wheeler served as the first African American mayor of Ann Arbor. While fighting for civil rights, the Wheelers taught Alma and her two sisters, Illinois Appeals Court Judge Mary McDade and Washtenaw County Judge Nancy Wheeler, the importance of public service and equal justice for everyone.

Alma followed local elected service with election to both chambers of the Michigan Legislature where she served for 14 years on the powerful Appropriations Committees. She has been twice term-limited from the Legislature and is constitutionally barred from future legislative service. In 2001, Alma became the first African American to mount a campaign for governor on Michigan's Democratic ticket and initiated a second run in 2010. In the Senate, Alma was the Democratic Vice-Chair of the Appropriations Committee. She was the first woman to hold a leadership position on that powerful committee and was, unquestionably, one of the most respected members of the legislature. "How did she get that done in a Republican legislature" became a hallmark question among Capitol operatives and testified to how well Alma worked across party lines. Alma was responsible for hundreds of amendments that modified and improved policy and appropriations bills.

During 2003 and 2004, between legislative terms in the Michigan Senate and House, Alma served as a director of University Bank and rejoined the bank's board of directors in 2011 upon her retirement from the legislature.

Alma received her B.A. in Journalism from the University of Michigan and took advanced degree work in Journalism and Business Administration. Before joining Senator Lana Pollock's staff in 1986, Alma was a senior producer at the University of Michigan Television Center. Before entering the legislature Alma served as cable commissioner, school board trustee and county commissioner.

Rev. Willie Powell, the newly elected Vice Chair of University Bank, is the former executive director of the City of Ann Arbor Employees' Retirement System & VEBA, which has over $500 million under management. He currently serves as the Senior Pastor of Grace Fellowship Church of God in Christ in Ypsilanti, Michigan. Rev. Powell received his B.B.A. (Bachelors in Business Administration) from the University of Michigan in 1975.

Dr. David Canter is currently the Executive Director of the U-M North Campus Research Complex. Dr. Canter, a physician, scientist and respected leader, once led the Pfizer pharmaceutical research operation on the site now known as the U-M North Campus Research Complex.

Ann Arbor-based University Bancorp owns 100% of University Bank which, together with its subsidiaries, holds and manages a total of over $10.3 billion in loans and assets. University Bank is an FDIC-insured, locally owned and managed community bank, and meets the financial needs of its community through its creative and innovative services. Founded in 1890, University Bank^® is proud to have been selected as the "Community Bankers of the Year" by American Banker magazine and as the recipient of the American Bankers Association's Community Bank Award. Based on the number of employees, University Bank is currently the 11^th largest bank headquartered in Michigan.

Shareholders and investors are encouraged to refer to the financial information available on our investor relations web page at: http://www.university-bank.com/Bancorp.html.