University Bancorp Closes $25 Million Equity Investment & Secures a $12.5 Million Line of Credit Financing

Annual Shareholder Meeting Set for December 17, 2025

ANN ARBOR, MI / ACCESS Newswire / November 18, 2025 / University Bancorp, Inc. (OTCQB:UNIB) or ("UNIB") announced that it has closed on a material financing, a $25 Million equity investment.

In addition, the Company has scheduled a closing on December 2, 2025 of a $12.5 million line of credit, which is a one-year agreement, with interest at The Wall Street Journal Prime Rate, as such Index may vary from time to time. The Effective Interest Rate under this line of credit has a floor of 5.00% and a ceiling of 25.00%, and is secured by a first lien on the Company's ownership of 100% of University Bank, in favor of the lender, which is a bankers' bank.

The $25 million equity investment was made by Castle Creek Capital Partners IX, LP, a Delaware limited partnership (the "Castle Creek Fund"), a newly organized fund managed by Castle Creek Capital, a major institutional investor in community banks nationwide. The fund is expected to have a life of at least 8 years, and this is the second investment by the Castle Creek Fund. The new equity investment will assist the Company with closing four small acquisitions, pending regulatory approvals, which will expand our core banking, insurance and wealth management businesses. The Company currently anticipates that its return on investment from these investments collectively exceeds a 20% annual rate of return.

Key Terms of the Equity Investment by the Castle Creek Fund are as follows:

Equity Investment:

• A fund managed by Castle Creek has purchased $25 million of a new class of Series 6 convertible perpetual noncumulative preferred stock of UNIB.

Dividends:

• Series 6 Preferred pays a quarterly dividend of 6% annual rate, increasing to a 12% annual rate after the fifth anniversary.

• Dividends are noncumulative, meaning that a quarterly dividend that is not declared and not paid does not carry forward, the investor loses it.

• However, if UNIB misses a quarterly dividend on the Series 6 preferred stock then no dividends may be paid on common until Series 6 dividends resume.

Conversion:

• Convertible into common stock at the Castle Creek Fund's option at any time, in whole or in part, at $19.05 per share (subject to adjustment in certain circumstances). There are special mechanics for converting into Series 7 preferred or nonvoting common stock if conversion would result in the Castle Creek Fund owning more than 9.9% of total common stock.