University Bancorp, Inc. (OTCQB:UNIB) reported unaudited net income attributable to common shareholders of $2,350,713, or $0.45 per share, for 2Q2026. The result compares with an unaudited net loss of $2,015,771, or $0.39 per share, in 2Q2025.
#Six-month earnings and shareholder equity
For the six months ended June 30, 2026, University Bancorp recorded net income of $11,255,597, or $2.18 per share, based on average shares outstanding of 5,169,518. In the corresponding period of 2025, the company reported net income of $1,784,600, or $0.35 per share.
On a fully diluted basis, earnings per share were $0.36 in 2Q2026 and $1.74 for 1H2026. The company said there were no dilutive instruments outstanding in the comparable 2025 periods.
Common shareholders’ equity stood at $109,844,993 at June 30, 2026. This represented $21.25 per share based on 5,169,518 shares outstanding. On a fully diluted basis, equity was $20.80 per share based on 6,481,854 fully diluted shares outstanding.
#Factors affecting 2026 earnings
University Bancorp said year-to-date earnings received an overall net positive impact of $5,839,445 before taxes from two factors, partly offset by an increase in the allowance for loan losses.
The company reported that the valuation of its mortgage servicing rights increased $4.2M at 2Q2026 and $1.1M at 1Q2026 as long-term mortgage interest rates rose during the year. The fair market value of its hedged mortgage origination pipeline increased by $431,338 at 2Q2026 and $366,797 at 1Q2026.
The allowance for loan losses increased from the prior quarter by $157,343 at 2Q2026 and $32,205 at 1Q2026. University Bancorp also stated that nationwide mortgage originations remained at 30-year lows based on units originated.
#Acquisitions and business operations
University Bancorp said it completed the acquisition of American Finance House Lariba on April 1, 2026. The faith-based mortgage company was integrated into UIF, 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. The company said 48% was paid in cash and the remainder in Notes.
University Bancorp said the acquisition provides opportunities to offer faith-based financing for homes, commercial real estate and vehicles, as well as FDIC-insured time, savings and checking accounts and tax advantaged IRA deposit accounts. The company stated that it anticipates the transaction will be accretive to earnings per share over time. A transfer of residential servicing to Midwest Loan Services, a division of University Bank, is currently targeted for November 1 st. The company also stated that it anticipates achieving significant economies of scale in connection with the servicing transfer.
Faith-based deposits reached $208.3 million at June 30, 2026. University Bancorp said the deposits include a product that automatically sweeps idle balances in brokerage customer accounts into and out of faith-based deposit products.
The company said University Bank is licensed for conventional mortgage lending and home equity lending in all 50 states. It is also working on the rollout of a fixed home equity second mortgage programme in 47 states, with loans to be sold to the secondary market and subserviced by Midwest Loan Services.
#Liquidity and investment holdings
At June 30, 2026, UNIB reported $56.1 million in cash and equity investment securities available for working capital needs and investment opportunities. It also had a $12.5 million line of credit with a balance due of $0.
The company said $34.8 million of working capital, measured at market value, was invested in publicly traded investments concentrated in four large holdings. These included 762,339 shares of Currency Exchange International, or 12.93% of its currently outstanding common stock, at an average cost of $13.38 per share; and 10,444,811 shares of Pulsar Helium, or 4.87% of its currently outstanding common stock, at an average cost of $0.602 per share.
The portfolio also included a $5,000,000 investment in silver through futures contracts at a cost of $61.45 per ounce. University Bancorp said it had booked a $750,000 profit on the sale of a $2,000,000 leveraged long position in a silver ETF when silver was $71 per ounce.
UNIB also reported a portfolio of put options on the S&P500, KRE, XLF and one large regional bank. The put option portfolio was valued at $2.7 million at June 30, 2026.
#Company caution on forward-looking statements
University Bancorp cautioned that statements about future asset growth, profitability, merger-related efficiencies and economies of scale, future products, valuations and economic or market conditions involve risks and uncertainties. The company said actual results could differ materially because of economic, competitive, governmental and technological factors affecting its operations, products, services, interest rates, fees and investment holdings.
The company advised readers not to place undue reliance on forward-looking statements, which speak only as of the date of the announcement, and said it undertakes no obligation to update them. Further terms and conditions apply to the matters described above.
#Key Takeaways
- University Bancorp reported unaudited 2Q2026 net income of $2,350,713, or $0.45 per share.
- Six-month net income through June 30, 2026, was $11,255,597, or $2.18 per share.
- Common shareholders’ equity was $109,844,993, or $21.25 per share, at June 30, 2026.
- UNIB acquired 100% of Greater Pacific Bancshares and Bank of Whittier, NA. on July 1, 2026, for $37.2 million.
#What were University Bancorp’s reported results for 2Q2026?
University Bancorp reported unaudited net income attributable to common shareholders of $2,350,713, or $0.45 per share, for 2Q2026, based on average shares outstanding of 5,169,518. This compared with an unaudited net loss of $2,015,771, or $0.39 per share, for 2Q2025. On a fully diluted basis, net income per share in 2Q2026 was $0.36. The company said there were no dilutive instruments outstanding in 2Q2025.
#What were the results for the six months ended June 30, 2026?
For the six months ended June 30, 2026, net income was $11,255,597, or $2.18 per share, based on average shares outstanding of 5,169,518. This compared with $1,784,600, or $0.35 per share, for the six months ended June 30, 2025. On a fully diluted basis, net income per share in 1H2026 was $1.74. The company said there were no dilutive instruments outstanding in 1H2025.
#What did the company report about shareholders’ equity and return on equity?
Shareholders’ equity attributable to University Bancorp common shareholders was $109,844,993, or $21.25 per share, based on 5,169,518 shares outstanding at June 30, 2026. The fully diluted figure was $20.80 per share, based on 6,481,854 fully diluted shares outstanding. The company reported annualised ROE of 12.3% in 2Q2026 and annualised ROE of 19.9% for the TTM ended June 30, 2026, based on initial shareholders’ equity of $93,132,755 at June 30, 2025. It also stated that mortgage originations nationwide continued to be at 30-year lows with respect to units originated.
#What factors affected year-to-date earnings in 2026?
The company said year-to-date earnings in 2026 were assisted by two major factors and partly offset by one factor, producing an overall net positive impact of $5,839,445 before taxes. The MSR valuation increased $4.2M at 2Q2026 and $1.1M at 1Q2026. The fair market value of the hedged mortgage origination pipeline rose by $431,338 at 2Q2026 and $366,797 at 1Q2026. The allowance for loan losses increased from the prior quarter by $157,343 at 2Q2026 and $32,205 at 1Q2026.
#What acquisitions did University Bancorp report?
The company said it completed the acquisition of American Finance House Lariba on April 1, 2026, and integrated it into UIF, a wholly owned subsidiary of University Bank. It also said that on July 1, 2026, UNIB acquired 100% of Greater Pacific Bancshares and Bank of Whittier, NA. for $37.2 million, with 48% paid in cash and the remainder paid in Notes. UNIB stated that it anticipates the transaction will be accretive to earnings per share over time and that it anticipates achieving significant economies of scale with residential servicing transferred to Midwest Loan Services, currently targeted for November 1 st. These statements are subject to the company’s stated forward-looking risks and uncertainties.
#What financial resources and investments did the company disclose?
At June 30, 2026, UNIB reported $56.1 million in cash and equity investment securities, along with a $12.5 million line of credit with a balance due of $0. The company said $34.8 million at market value was invested in publicly traded investments concentrated in four large holdings. These included 762,339 shares of Currency Exchange International, representing 12.93% of its currently outstanding common stock, at an average cost of $13.38 per share; 10,444,811 shares of Pulsar Helium, representing 4.87% of its currently outstanding common stock, at an average cost of $0.602 per share; a $5,000,000 silver futures investment at a cost of $61.45 per ounce; and put options valued at $2.7 million at June 30, 2026. The company also said it booked a $750,000 profit on the sale of a $2,000,000 leveraged long position in a silver ETF when silver was $71 per ounce.
#What risks and uncertainties did the company identify?
University Bancorp said its forward-looking statements involve risks and uncertainties related to future asset growth, profitability, merger-related efficiencies and economies of scale, future products, valuations and economic, market or industry conditions. It said actual results could differ materially because of economic, competitive, governmental and technological factors affecting its operations, markets, products, services, interest rates, fees or the companies in which it invests. The company cautioned readers not to place undue reliance on such statements, which speak only as of the date of the announcement, and said it undertakes no obligation to update them.
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