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University Bancorp, Inc., established in 1890 and headquartered in Ann Arbor, Michigan, functions as the holding company for University Bank. This entity delivers a wide array of financial and banking solutions across the United States, serving personal, commercial, and community needs. Its product portfolio includes various deposit account options, such as checking, NOW, savings, money market, time deposit, and certificates of deposit (CDs). For individuals, the company facilitates loans including home equity, short-term, automobile, personal, and recreational vehicle financing, along with home equity lines of credit. Businesses and non-profit groups can access commercial real estate loans, equipment financing, small business loans, and working capital lines of credit. Additionally, the company offers an assortment of supplementary services like foreign currency exchange, comprehensive online banking with bill payment functionalities, convenient online check reordering, wire transfers, courier services, and access to credit cards and ATMs. Clients can also secure various insurance coverages, including life, health, property, and casualty policies, alongside investment products such as annuities.
University Bancorp, Inc. Issues $25 Million of Subordinated Notes
University Bancorp closed a $25 million private placement of fixed-to-floating rate subordinated notes due October 30, 2036.
The notes pay 8.125% fixed for five years, then reset quarterly at three-month SOFR plus 355 basis points, with a $25 million forward swap fixing the effective rate at 8.25% for the second five years.
Proceeds go to general corporate purposes, including adding common equity to its bank subsidiaries and redeeming existing senior or subordinated notes.