Arizona Tribune - University Bancorp 2Q2026 Net Income $2,350,713, $0.45 Per Share

For the six months ended June 30, 2026, net income was $11,255,597, $2.18 per share on average shares outstanding of 5,169,518 for the period, compared to $1,784,600, $0.35 per share on average shares outstanding of 5,169,518 for the six months ended June 30, 2025. On a fully diluted basis, net income per share in 1H2026 was $1.74. There were no dilutive instruments outstanding in 1H2025.

Shareholders' equity attributable to University Bancorp, Inc. common stock shareholders was $109,844,993 or $21.25 per share, based on shares outstanding at June 30, 2026, of 5,169,518, and $20.80 per share, on a fully diluted basis, based on 6,481,854 fully diluted shares outstanding.

Return on equity (ROE) at University Bancorp in 2Q2026 annualized was 12.3%, despite mortgage originations nationwide continuing to be at 30-year lows with respect to units originated. The annualized ROE for the TTM ended June 30, 2026, was 19.9% on initial shareholders' equity of $93,132,755 at June 30, 2025."

Year to date earnings in 2026 were assisted by two major factors, partially offset by one factor, that had an overall net positive impact of $5,839,445 before taxes as follows:

1. Mortgage Servicing Rights Valuation adjustment - With the rise in long-term mortgage interest rates during the year, the valuation of our MSRs increased $4.2M and $1.1M at 2Q2026 and 1Q2026, respectively.

2. Mortgage Origination Pipeline Valuation adjustment - The fair market value of the hedged mortgage origination pipeline rose as the value of locked loans rose over the prior quarter by $431,338 and $366,797 at 2Q2026 and 1Q2026, respectively.

3. Allowance for Loan Losses adjustment - The Allowance for Loan Losses increased from the prior quarter by $157,343 and $32,205 at 2Q2026 and 1Q2026, respectively.

Overall, our business development efforts and growth continue. For example, during 2Q2026:

• On April 1, 2026, we closed on the acquisition of a faith-based mortgage company competitor to UIF, American Finance House Lariba, and the acquisition was successfully integrated into our faith-based subsidiary, UIF. UIF is a wholly owned subsidiary of University Bank.

• On July 1, 2026, UNIB acquired 100% of Greater Pacific Bancshares and Bank of Whittier, NA. for a purchase price of $37.2 million of which 48% was paid in cash and the remainder paid in Notes. This acquisition provides many opportunities for expanded ability to provide faith-based financing (home, commercial real estate, vehicle) and deposits (FDIC-insured time, savings, checking and tax advantaged IRA deposit accounts). UNIB anticipates that the transaction will be accretive to earnings per share over time, and with the residential servicing transferred to Midwest Loan Services, a division of University Bank, currently targeted for November 1^st, we anticipate achieving significant economies of scale. The key financial terms of the transaction are available at this link: https://www.university-bank.com/wp-content/uploads/2025/12/press-189-Supplement.pdf.

• Faith-based deposits have grown to $208.3 million at June 30, 2026, and include a new product that enables the automatic sweep of idle balances in customer accounts at brokerage firms into and out of our faith-based deposit products, which is accelerating deposit growth.

• University Bank is now licensed for conventional mortgage lending and home equity lending in all 50 states. After completing the rollout of our 1^st Mortgage HELOC program in all 47 states where we intend to introduce the product, volumes are accelerating. We are now working on rolling out a fixed home equity second mortgage lending program tied to an industry standard credit box in 47 states, with the loans being sold to the secondary market and subserviced by our Midwest Loan Services division.

At June 30, 2026, cash & equity investment securities at UNIB, available to meet working capital needs and to support investment opportunities at UNIB were $56.1 million. UNIB also has available a $12.5 million line of credit with a balance due of $0 at June 30, 2026.

A portion of UNIB's working capital, $34.8 million (at market value), has been invested in a portfolio of publicly traded investments concentrated in four large investments. The four largest investments at June 30, 2026, were:

• Currency Exchange International (Symbol CURN), a company that specializes in foreign exchange, of which we now own 762,339 shares, 12.93% of the currently outstanding shares of common stock, at an average cost of $13.38 per share.

• Pulsar Helium (Symbol PSRHF), of which we now own 10,444,811 shares, 4.87% of the currently outstanding shares of common stock, at an average cost of $0.602 per share.

• A $5,000,000 investment in Silver, via futures contracts, at a cost of $61.45 per ounce. In addition to this core position, we recently booked a $750,000 profit on the sale of a $2,000,000 leveraged position long a Silver ETF when Silver was $71 per ounce.

• A portfolio of put options on the following indices: S&P500, KRE (S&P 500 Banks) & XLF (S&P 500 Banks, Shadow Banks, Insurance Companies & REITs), and one large regional bank. UNIB's put option portfolio was worth $2.7 million at June 30, 2026.

Other Key statistics as of June 30, 2026:

^%Does not include the TTM revenue from Bank of Whittier, N.A., acquired on 7/1/2026.

^#Parent company only current assets divided by 12-month projected cash expenses.

⁺Calculated as: (non-interest expense/ (net interest income + non-interest income)).

^xBased on last sale of $22.02 per share.

Excluding $546,658 of goodwill & other intangibles related to the acquisition of Ann Arbor Insurance Center, net tangible shareholders' equity attributable to University Bancorp, Inc. common stock shareholders was $109,298,335 or $21.14 per share (and $134,298,355 or $20.72 on a fully diluted basis) at June 30, 2026. Please note that we view the current market values of our insurance agency as being substantially in excess of their carrying value including this goodwill.

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

A detailed income statement, balance sheet and other financial information for UNIB and University Bank as of June 30, 2026, will be available here: https://www.university-bank.com/bancorp-financial-statements/.

University Bank's FDIC Quarterly Call Report, with substantial additional information including loan origination, loan investment composition, delinquency ratios and Tier 1 Capital ratios for June 30, 2026, is available here: https://cdr.ffiec.gov/public/ManageFacsimiles.aspx

About UNIB

Ann Arbor-based University Bancorp is a Federal Reserve regulated financial holding company that owns:

• 100% of University Bank, a bank based in Ann Arbor, Michigan;

• 100% of Bank of Whittier, N.A., a faith-based bank based in Whittier, California;

• 100% of Crescent Assurance, PCC, a captive insurance company licensed in Washington DC; and

• 100% of Hyrex Servicing, a master mortgage servicing firm, based in Ann Arbor, Michigan.

University Bank together with its Michigan-based subsidiaries holds and manages a total of over $36 billion in financial assets for over 185,000 customers, and our 544 employees make us the 5th 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 quality, creative and innovative services. Founded in 1890, University Bank® is the 15th oldest bank headquartered in Michigan. We are 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 members of University Bank's corporate family, ranked by their size of revenues are:

• UIF, a faith-based banking firm based in Southfield, MI;

• University Lending Group, a retail residential mortgage originator based in Clinton Township, MI;

• Midwest Loan Services, a residential mortgage subservicer based in Houghton, MI;

• Community Banking, based in Ann Arbor, MI, which provides traditional community banking services and wealth management;

• Ann Arbor Insurance Centre, an independent insurance agency based in Ann Arbor, MI.

• Mortgage Warehouse Lending, a mortgage warehouse lender based in Southfield, MI.

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 growth in assets, future profitability, efficiencies and economies of scale from the merger, the sustainability of past results, future products, valuations, economic, market or industry conditions, 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, or the operations of companies that we invest in. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We undertake no obligation to update any information or forward-looking statement.

Contact: Stephen Lange Ranzini, President and CEO
Phone: 734-741-5858, Ext. 9226
Email: [email protected]

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SOURCE: University Bancorp, Inc.

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