- University Bancorp (UNIB, Financial) reported a significant increase in net income to $10.47 million or $2.02 per share in 2024.
- The company achieved an impressive return on equity of 12.5% in 2024, up from 7.1% in 2023.
- A new dividend policy was instituted, including a special $0.20 dividend and quarterly payments of $0.10.
University Bancorp, Inc. (OTCQB:UNIB) released their 2024 financial results, highlighting a remarkable increase in audited net income to $10,467,383, which translates to $2.02 per share. This marks a substantial rise from the 2023 figures of $5,426,558 or $1.07 per share. The return on equity also experienced an upturn, reaching 12.5% in 2024 compared to 7.1% the previous year.
In terms of shareholder value, University Bancorp has ramped up its equity to $93.59 million or $18.10 per share by year-end 2024. The company has initiated a new dividend policy that includes a special dividend of $0.20 and quarterly dividends of $0.10, showing a commitment to returning value to shareholders.
The bank posted an 18.65% growth in overall revenue for 2024. Mortgage origination for 2024 reached $1.1 billion, albeit slightly down from $1.2 billion in 2023. However, portfolio loans rose to $782.4 million by the end of the year. Additionally, the bank maintained its assets under $1 billion to circumvent extra regulatory costs.
In other strategic moves, University Bancorp has improved its capital position with a Common Equity Tier 1 Capital of $99.7 million and issued $15 million in senior unsecured debt in October 2024. Despite challenges in the mortgage origination industry, which saw a low profitability margin of 6 basis points nationwide, University Bancorp remains optimistic about its future prospects, especially with newly set projects aiming for enhanced earnings in the coming year.
