University Bank

What University Bank does

University Bank is a Michigan-based community bank founded in 1890 and headquartered in Ann Arbor, operating as the 15th oldest bank headquartered in the state and the 5th largest by employee count (533 FTE as of March 2026). The bank is a wholly-owned subsidiary of University Bancorp, Inc., which trades on the OTCQB market under the ticker UNIB. The bank operates two physical branches in Ann Arbor and Ypsilanti within Washtenaw County and serves local residents, small businesses, and non-profit organizations through deposit products (checking, savings, money market, CDs), consumer lending, SBA lending, and commercial lending. It is licensed for conventional mortgage lending in all 50 states and operates a diversified subsidiary ecosystem including University Lending Group (retail mortgage origination), Midwest Loan Services (mortgage subservicing), University Bank Warehouse (warehouse lending), Ann Arbor Insurance Centre (insurance agency), UIF Corporation (faith-based/Islamic banking), University Investment Services (wealth management), Credit Union Trust (49.999% stake), and Crescent Assurance PCC (captive insurance). Together with its subsidiaries, University Bank manages over $35 billion in financial assets for more than 183,000 customers.

The bank generates revenue through multiple streams: net interest income on community banking activities, transaction fees on mortgage origination (conventional and faith-based), managed services revenue from mortgage subservicing, professional services revenue from insurance distribution, and recurring wealth management fees. Its digital banking platform comprises an online portal and mobile application (built on Fiserv infrastructure) with features including biometric login, mobile deposit capture, Apple Pay/Google Pay integration (launched June 2024), CardHub card management with spending controls (August 2024), CheckFree-powered Enhanced Bill Pay (September 2024), and Credit Sense credit monitoring (February 2025). Pricing for deposit products is structured with tiered minimum balances and monthly service fees where applicable, while mortgage origination operates on a transaction-fee model and insurance distribution on commission.

University Bank reported record FY2025 revenue of $137.5 million (9.8% year-over-year growth) and Q1 2026 net income of $8.9 million ($1.72 per share), with annualized ROE of 35.8%. Despite revenue growth, FY2025 net income declined to $9.02 million from $11.82 million in 2024, attributed to industry-wide mortgage origination weakness. The company is in an active expansion and acquisition phase, having closed a $25 million Castle Creek Capital preferred equity investment and $12.5 million line of credit in November 2025 to fund pending acquisitions of Greater Pacific Bancshares/Bank of Whittier N.A. ($36.78 million, closing July 1, 2026) and American Finance House LARIBA (approximately $8.18 million), both of which deepen its faith-based banking franchise.

Name

University Bank

Legal name

University Bank

Website

https://university-bank.com

Company type

Private

Founded year

1890

Operating status

Operating

Headcount range

501–1,000 employees

Short description

University Bank is a 135-year-old Michigan community bank and FDIC-insured institution, operating branches in Ann Arbor and Ypsilanti and serving 183,000+ customers through deposit accounts, mortgage lending (50-state licensed), insurance, wealth management, and a nationally recognized faith-based/Islamic banking franchise via subsidiary UIF Corporation.

Ownership category

akta.pro rank

Product category

Community Banking

NAICS

Commercial Banking (52211)

SIC

State Commercial Banks (6022)

akta.pro primary industry

Student & Youth Banking (FSABAAAH)

Keywords

• Community banking services
• Residential mortgage lending
• Faith-based financing
• Wealth management services
• Small business lending

Headquarters

HQ city

Ann Arbor

HQ country

United States

HQ region

North America

Offices6 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Infrastructure, Marketing or Sales

Revenue model

1. Community Banking: Traditional community banking services including deposit products (checking, savings, money market, CDs), consumer lending, and business banking. Primary focus on Ann Arbor and Ypsilanti markets.
2. Mortgage Origination: Residential mortgage lending through University Lending Group subsidiary. University Bank is licensed for conventional mortgage lending in all 50 states. Revenue earned through loan origination fees.
3. Mortgage Servicing: Residential mortgage subservicing through Midwest Loan Services. Loan servicing operations with over 30 years of experience. Residential servicing operations being transferred from Bank of Whittier to Midwest Loan Services.
4. Insurance Services: Insurance products and services through Ann Arbor Insurance Centre subsidiary, including home, auto, life, health, business, and farm insurance.
5. Wealth Management: Wealth management and investment services through University Investment Services and University Bank's subsidiary stakes in Credit Union Trust (49.999% ownership).
6. Faith-Based Financial Services: Faith-based banking, financing, and deposit services through UIF Corporation subsidiary, including home financing, commercial real estate financing, vehicle financing, and IRA deposit accounts. Over $6.3 billion in residential faith-based transactions closed since inception.
7. Warehouse Lending: Nationwide purchase and sale facilities for mortgage warehouse lending through University Bank Warehouse division.

Pricing tiers

Go-to-market motion3 records

Distribution channels6 records

Marketing channels6 records

Core offering

University Bank is a Michigan-based community bank that delivers personal and business deposit products, consumer and commercial lending, and home financing through its Ann Arbor and Ypsilanti branches. It extends its reach nationally through subsidiaries that provide retail mortgage origination, residential mortgage subservicing, mortgage warehouse lending, insurance, faith-based (Sharia-compliant) banking, and wealth management services.

Product overview

University Bank offers a diversified portfolio of banking and financial services structured as a community bank with multiple subsidiary brands and product lines. Core offerings include personal and business deposit accounts (checking, savings, money market, CDs), consumer and business lending, SBA loans, and wealth management. The digital banking platform comprises online banking, mobile banking app with biometric login, mobile deposits, and card management. Key subsidiaries and sub-brands include: University Lending Group (retail mortgage origination), Midwest Loan Services (mortgage subservicing), University Bank Warehouse (warehouse lending), Ann Arbor Insurance Centre (insurance agency), and UIF (faith-based Islamic banking services). The bank also provides specialized programs like Credit Sense credit monitoring and the Neighborly Housing Grant. The subsidiary structure includes Credit Union Trust (49.999% owned) for wealth management and Crescent Assurance (captive insurance). University Bank is licensed for conventional mortgage lending in all 50 states and serves Washtenaw County, Michigan as its primary market while managing over $35 billion in financial assets for over 183,000 customers through its corporate family.

Differentiator

Problem solved

Functional benefit

Brands

• University Lending Group (ULG): Retail residential mortgage originator based in Clinton Township, MI
• UIF (University Islamic Finance)
• Midwest Loan Services
• Ann Arbor Insurance Centre (AAIC)
• University Bank Warehouse
• Credit Sense
• University Investment Services

Products and services

• University Checking Account Personal checking account with $100 minimum opening balance, no monthly service fee, unlimited check writing, MasterCard debit card, and Allpoint ATM network access (55,000+ ATMs worldwide) for individual consumers.
• University Checking PLUS Account Interest-earning personal checking account requiring $500 minimum opening balance and $500 minimum monthly average balance to avoid a $6 monthly fee, targeted at individual consumers seeking yield on checking balances.
• University Savings Account Interest-bearing personal savings account with a $25 minimum opening balance and ATM card access, designed to help individual consumers save toward future financial goals.
• University Money Market Account

Quantifiable outcome

• Record revenue of $137.5 million in 2025, representing 9.8% year-over-year growth
• +4 more outcomes

Named customers3 records

Ideal customer profiles6 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration9 records

Feature4 records

Partnerships

Seven partnerships are on record, tiered core and minor.

• Greater Pacific Bancshares / Bank of Whittier, N.A.coreStrategic or Co-development Partner · 1 July 2026University Bancorp received regulatory approval to acquire 100% of Greater Pacific Bancshares (increasing from 8.93% stake) for $36,779,800. Upon closing on July 1, 2026, Greater Pacific Bancshares will be merged into University Bancorp and Bank of Whittier, N.A. will become a wholly-owned subsidiary. The acquisition expands University Bancorp's presence in faith-based banking services.
• Credit Union TrustminorStrategic or Co-development Partner · 16 December 2025University Bank acquired an additional 37.4999% of Credit Union Trust for $3.75 million, increasing its ownership to 49.9999%. This acquisition is a key part of the bank's wealth management strategy.
• American Finance House LARIBAcoreStrategic or Co-development Partner · 15 December 2025University Bancorp signed definitive agreement to acquire American Finance House LARIBA, pioneers in the U.S. faith-based financial services industry. LARIBA will be merged into UIF Corporation. LARIBA was founded in 1987 and has financed over 5,000 transactions worth over $1.5 billion. The acquisition price is approximately $8,178,684.
• UIF Corporation (Minority Shareholder Exchange)minorStrategic or Co-development Partner · 15 December 2025The 20% minority shareholder of UIF has agreed to swap their common shares of UIF for common shares in UNIB, subject to closing on the purchase of Greater Pacific Bancshares. UNIB will issue 666,108 shares of common stock in the exchange, which will increase UNIB's ownership of UIF.
• Gary Steven Findley and AssociatesminorImplementation/ SI/ Consulting PartnerLegal counsel providing legal assistance to Greater Pacific Bancshares, Bank of Whittier, and LARIBA in support of the acquisition transactions.
• Hillworth Bank PartnersminorImplementation/ SI/ Consulting PartnerProvided a fairness opinion to the board of directors of Greater Pacific Bancshares in connection with the acquisition transaction.
• Varnum LLPminorImplementation/ SI/ Consulting PartnerLegal counsel providing legal assistance to University Bancorp, University Bank, and UIF in support of the acquisition transactions.

Scale indicators10 records

Recent moves7 records

Expansion highlights6 records

Direct peers

• Mercantile Bank Corporation: Michigan-chartered community bank holding company headquartered in Grand Rapids, with similar community banking, commercial lending, and mortgage origination services to University Bank across Michigan markets.
• Level One Bank: Michigan-based community bank offering personal, business, and mortgage lending across Southeast Michigan. Comparable to University Bank in scale, product mix (deposits, SBA, mortgage), and community-bank positioning.
• Guidance Residential: One of the largest U.S. providers of Sharia-compliant home financing, competing head-to-head with University Bank's UIF subsidiary in the American Islamic home finance market.
• Independent Bank Corporation: Michigan-based bank holding company providing retail banking, commercial lending, and mortgage services across the state. Comparable in community-bank orientation, product set, and Michigan footprint to University Bank.
• Lake Michigan Credit Union: Michigan's largest credit union, headquartered in Grand Rapids, serving consumers and businesses with deposits, lending, and mortgage products. Competes directly with University Bank's community banking services across Michigan.
• Bank of Ann Arbor: Headquartered in Ann Arbor, Michigan, Bank of Ann Arbor is the closest direct competitor to University Bank, serving the same Washtenaw County market with community-focused personal and business banking, commercial lending, and treasury services.
• Bank of Whittier, N.A. California-based community bank being acquired by University Bancorp; provides faith-based banking and Sharia-compliant deposit/lending products through LARIBA, directly comparable to University Bank's UIF subsidiary in niche and model.

Regional players

• Old National Bancorp: Midwest-headquartered community/commercial bank operating in Michigan and adjacent states with comparable commercial, mortgage, and wealth management offerings to University Bank's diversified subsidiary portfolio.

Broad incumbents

• Flagstar Bank: Large Michigan-headquartered bank offering retail deposits, mortgage origination, and commercial banking across many states. Overlaps with University Bank's community banking core and nationwide mortgage ambitions but at much greater scale.
• Huntington Bancshares: Major Midwest regional bank with deep Michigan presence through its TCF acquisition, offering consumer, commercial, mortgage, and wealth services comparable to University Bank's full suite but as one product line among many.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights1 record

Customer concentration

• Xx.com/universitybank
• Facebookfacebook.com/universitybank
• LinkedInlinkedin.com/company/university-bank

Compliance4 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Subsidiaries8 records

Funding overview

Funding rounds2 records

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments2 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about University Bank