University Bancorp 3Q2014 Net Income $528,727, $0.112 per Share

ANN ARBOR, MI--(Marketwired - Nov 24, 2014) - University Bancorp, Inc. (OTCQB: UNIB) announced that it had an unaudited net income attributable to University Bancorp, Inc. common stock shareholders in the third quarter of 2014 of $528,727, $0.112 per share on average shares outstanding of 4,737,220 for the period. Net income for the nine months ended September 30, 2014 was $826,128 or $0.175 on average shares outstanding of 4,713,358 for the period. In 9M2014 the net income of the Company's wholly-owned subsidiary, University Bank, was $887,465, below the budget by $845,977, consolidated after-tax net income before minority interest was $1,027,111, below the budget by $1,140,312 and consolidated pre-tax income before minority interest was $1,543,007, below the budget by $1,741,143. For the first nine months of 2014 minority interest of $139,646 and preferred stock dividends of $57,269 were incurred. 

President Stephen Lange Ranzini noted, "The budget for 2014 calls for the company to have net income attributable to University Bancorp, Inc. common stock shareholders of $2.68 million after-tax, $0.57 per share, and the bank to earn $5.17 million pre-tax." The first nine months of 2014 were negatively impacted by a valuation mark to market on our mortgage servicing rights of negative $928,251 and legal expense related to two lawsuits of $716,000. One of these lawsuits was settled after quarter-end. These $1,644,251 of expenses, which were partially offset by a decrease in the required allowance for loan losses of $296,864, account for nearly the entire shortfall under the budgeted net income. The remaining shortfall is due to slower than anticipated ramp up of two new products, a one-time close construction permanent residential loan and a conventional renovation loan program, which was only partially offset by cost cutting.

For the 12 months ended September 30, 2014, the Company had unaudited net income attributable to University Bancorp, Inc. common stock shareholders of $648,841 or $0.138 per share on average shares outstanding of 4,708,225 and return on equity attributable to common stock shareholders was 6.8% on initial equity of $9,597,648. 

For the first nine months of 2013, the consolidated pre-tax profit of the Company's wholly-owned subsidiary, University Bank, was $4,407,487, above the budget by $47,903, and consolidated after-tax net income before minority interest was $3,058,659, above the budget by $181,336. For the first nine months of 2013 minority interest of $541,749, minority tax sharing payments of $431,416 and preferred stock dividends of $72,582 were incurred. Results were above budget in the 2013 period and elevated due to higher than anticipated mortgage originations flowing from refinancing.