SOURCE: University Bancorp

University Bancorp

December 12, 2014 12:06 ET

University Bancorp Sets Annual Meeting Date as December 19, 2014 Noon EST

ANN ARBOR, MI--(Marketwired - Dec 12, 2014) - University Bancorp, Inc. (OTCQB: UNIB) today announced that its 2014 annual shareholder meeting has been scheduled for December 19, 2014, beginning at Noon EST at University Bank's headquarters at 2015 Washtenaw Avenue, Ann Arbor. Shareholders of record as of the close of business December 15, 2014 will be entitled to vote. As a measure to economize and save the shareholders money, no proxies will be solicited for the meeting by the company.

Shareholders will vote at the annual meeting to elect directors for the coming year and to increase the authorized number of shares of common stock of the Company from 5,000,000 shares to 6,000,000 shares. The board of directors recommends the increase in the authorized but unissued shares of common stock to facilitate the conversion of the convertible preferred shares into common stock of the Company that will be issued in connection with the acquisition of 20% of University Bank's subsidiary, Midwest Loan Services, not yet owned by University Bank, as recently announced. The outstanding shares of common stock would increase from 4,751,260 to 5,216,184 if the Midwest Loan Services share acquisition is completed and all outstanding share options are exercised and assuming the remaining 31,522 shares of Treasury Stock are reissued as part of any share issuance. There are currently outstanding share options to acquire 155,563 shares of common stock for an aggregate exercise price of $402,471, or $2.59 per share. The acquisition of the Midwest Loan Services shares requires the issuance of 309,361 shares of common stock and/or preferred stock convertible into common stock, at $6.95 per share.

The board currently has no plans to issue shares of common stock in addition to those to be issued discussed above; however, it recommends to the shareholders a larger increase in the authorized but unissued shares of common stock than what is necessary to provide the Company with flexibility to issue common stock in the future for strategic acquisitions or to raise additional capital if that is beneficial in increasing shareholder value. Shareholders holding over 50% of the Company's common stock have indicated to the board their intent to vote in favor of the proposed increase in the authorized number of shares of common stock of the Company at the annual meeting and if they do, the proposal will be approved.

Currently, the Company has $350,000 of 9% Preferred Stock outstanding and has about $15,000 in accrued unpaid dividends on that Preferred Stock. Cash on hand is currently $320,615. In addition, the Bank board is expected to declare a monthly dividend next week from the Bank's earnings in the amount of $87,000, and we have been informed by the holder of a stock option entitled to purchase 48,563 shares at $3.50 (or a total of $169,971) expiring June 30, 2015 that they intend to exercise their option early and before year-end. This will generate additional funds to increase the cash on hand to $577,586.

Since the Company will shortly be debt free and have no outstanding shares of preferred stock and is generating excess cash, the board intends to begin a stock repurchase program utilizing privately negotiated transactions since it believes that the Company's common stock is undervalued at the current trading price, and in addition, the board will consider initiating a dividend on the common stock.

Shareholders and investors are encouraged to refer to the financial information including the audited financial statements, strategic plan and prior press releases, available on our investor relations web page at: http://www.university-bank.com/bancorp/.

Ann Arbor-based University Bancorp owns 100% of University Bank which, together with its subsidiaries, holds and manages a total of over $16 billion in loans and assets and our 336 employees make us the 9th largest bank based in Michigan. 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. University Bank is a Member FDIC. The operating subsidiaries of University Bank which are members of our corporate family, ranked by their size of revenues are:

  • Midwest Loan Services, a residential mortgage subservicer based in Houghton, Michigan;
  • University Lending Group, a retail residential mortgage originator based in Clinton Township, Michigan;
  • University Islamic Financial, an Islamic banking firm based in Farmington Hills, Michigan;
  • Community Banking, based in Ann Arbor, Michigan, which provides traditional community banking services in the Ann Arbor area;
  • Ann Arbor Insurance Centre, an independent insurance agency based in Ann Arbor, Michigan.

CAUTIONARY STATEMENT: This press release contains certain forward-looking statements that involve risks and uncertainties. Forward-looking statements include, but are not limited to, statements concerning future events and future business development, pre-tax income and net income, budgeted income and capital levels, the sustainability of past results, and other expectations and/or goals. Such statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, economic, competitive, governmental and technological factors affecting our operations, markets, products, services, interest rates and fees for services. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. 

Contact Information

  • Contact:
    Stephen Lange Ranzini
    President and CEO
    Phone: 734-741-5858, Ext. 226
    Email: Email Contact