Newberry State Bank Constructed 1890 Plaque

University Bank is a community

bank A bank is a financial institution that accepts Deposit account, deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital m ...

headquartered in

Ann Arbor, Michigan Ann Arbor is a city in Washtenaw County, Michigan, United States, and its county seat. The 2020 United States census, 2020 census recorded its population to be 123,851, making it the List of municipalities in Michigan, fifth-most populous cit ...

. The bank was founded in 1890 in

Newberry, Michigan Newberry ( ) is a village in and the county seat of Luce County, Michigan, Luce County in the U.S. state of Michigan. The village is located within McMillan Township, Luce County, Michigan, McMillan Township and is the only incorporated community ...

, as The Newberry Bank and renamed The Newberry State Bank on May 3, 1908. In 1995, the bank sold its assets, adopted its current name, and moved to Ann Arbor. Its headquarters are in the Leander J. Hoover Mansion. The bank is fully owned by University Bancorp. Along with its Michigan-based subsidiaries, the bank holds and manages more than $30.5 billion in financial assets for more than 163,000 customers. It has more than 500 employees.

History

University Bank was founded in 1890 as the Newberry Bank, the only bank in the

Upper Peninsula The Upper Peninsula of Michigan—also known as Upper Michigan or colloquially the U.P. or Yoop—is the northern and more elevated of the two major landmasses that make up the U.S. state of Michigan; it is separated from the Lower Peninsula b ...

town of

. In 1908, it received a bank charter from the state of Michigan and changed its name to the Newberry State Bank. In 1988, the University Bancorp bank holding company owned by Stephen Lange Ranzini and Joseph Ranzini acquired controlling interest in the bank. Under Ranzini, the bank expanded into Sault Ste. Marie and doubled in size. In 1994, Newberry State Bank sold its loans, deposits, and branches to another bank in the Upper Peninsula. Ranzini retained the bank charter, renamed it University Bank, and moved it to Ann Arbor, where there was only one other community bank serving a diverse, vibrant and growing community. A new management team was recruited and the bank opened in Ann Arbor in early 1996. After the initial management team was replaced, Ranzini took over the direct day-to-day management of the bank in late 1997. In 2009, the

FDIC The Federal Deposit Insurance Corporation (FDIC) is a State-owned enterprises of the United States, United States government corporation supplying deposit insurance to depositors in American commercial banks and savings banks. The FDIC was cr ...

and Michigan Office of Financial and Insurance Regulation sent a cease-and-desist order to University Bank to stop conducting business with

SWIFT Swift or SWIFT most commonly refers to: * SWIFT, an international organization facilitating transactions between banks ** SWIFT code * Swift (programming language) * Swift (bird), a family of birds It may also refer to: Organizations * SWIF ...

and requiring more liquidity. The order also noted that the bank lacked an effective system of controls to comply with the

Bank Secrecy Act The Bank Secrecy Act of 1970 (BSA), also known as the Currency and Foreign Transactions Reporting Act, is a U.S. law requiring financial institutions in the United States to assist U.S. government agencies in detecting and preventing money laun ...

. University Bank has grown rapidly and has been profitable. Its annual revenue grew from $6.57 million in 2004 to over $140 million in 2020. Over those same 16 years, University Bank's return on shareholders' equity has averaged 20%, and common shareholders' equity grew from $3.0 million in 2004 to over $50 million in 2020.

Subsidiaries

University Bank's subsidiaries include: * University Lending Group, a retail residential mortgage originator based in Clinton Township. * Midwest Loan Services, a residential mortgage subservicer based in Hancock * UIF Corporation, an

Islamic banking Islamic banking, Islamic finance ( ''masrifiyya 'islamia''), or Sharia-compliant finance is banking or financing activity that complies with Sharia (Islamic law) and its practical application through the development of Islamic economics. Some ...

firm based in Southfield * Midwest Loan Solutions, a reverse residential mortgage lender and warehouse lender based in Southfield * University Bank, which provides traditional community banking services in the Ann Arbor metro area * Ann Arbor Insurance Centre, an independent insurance agency based in Ann Arbor

References

* {{cite web , last = University Bancorp , title = FORM 10-KSB/A, Amendment No. 1, Annual Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934, For the fiscal year ended December 31, 2006 of University Bancorp, Inc., page 3. , url=https://www.sec.gov/Archives/edgar/data/811211/000081121107000010/ub10ksb.txt , accessdate = 2007-07-05 Note: Citation of public domain material.

External links

University Bank official website
Banks based in Michigan Banks established in 1890