University Bank
University Bank is a Michigan community bank headquartered in Ann Arbor and wholly owned by University Bancorp.
Last updated August 25, 2026
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Overview
University Bank is a community bank based in Ann Arbor, Michigan. Its institutional history begins in 1890, when it was established in Newberry, in Michigan's Upper Peninsula, as The Newberry Bank. The institution received a Michigan state banking charter in 1908 and adopted the name The Newberry State Bank. For much of its early existence, it served the local Newberry market and was described as the town's only bank. A major ownership and strategic transition occurred in 1988, when University Bancorp, then controlled by Stephen Lange Ranzini and Joseph Ranzini, acquired a controlling interest. Under that ownership the bank expanded to Sault Ste. Marie and increased its scale. In 1994, the operating assets of Newberry State Bank—including loans, deposits, and branches—were sold to another Upper Peninsula bank. The holding company retained the bank charter, changed the institution's name to University Bank, and relocated it to Ann Arbor. The move repositioned the bank from a small Upper Peninsula institution toward a community-banking platform in a larger and more diversified Michigan market. University Bank opened in Ann Arbor in early 1996. Its headquarters occupy the Leander J. Hoover Mansion, a distinctive historic property that gives the institution a recognizable local identity. After the initial management team was replaced, Ranzini assumed direct day-to-day management in late 1997. The bank's business has subsequently been connected to a broader University Bancorp group whose Michigan subsidiaries participate in residential mortgage origination, mortgage servicing, reverse mortgage lending, warehouse lending, Islamic finance, and insurance. The bank's core offering remains traditional community banking for customers in the Ann Arbor area, while its affiliated businesses extend the group's reach across the residential-mortgage and specialty-finance value chain. Listed subsidiaries and affiliates include University Lending Group, a retail residential mortgage originator; Midwest Loan Services, a residential mortgage subservicer; UIF Corporation, an Islamic banking business; Midwest Loan Solutions, involved in reverse residential mortgage lending and warehouse lending; and Ann Arbor Insurance Centre, an independent insurance agency. The wider group has reported substantial growth. The reference material states that University Bank and its Michigan-based subsidiaries held or managed more than $30.5 billion in financial assets for more than 163,000 customers and employed more than 500 people; these figures describe the broader organization rather than necessarily the standalone bank. The same material reports that annual revenue increased from $6.57 million in 2004 to more than $140 million in 2020, and that common shareholders' equity rose from $3.0 million to more than $50 million over that period. These financial figures require interpretation in the context of University Bancorp and its affiliated operations. The institution also has a regulatory compliance episode in its history. In 2009, the Federal Deposit Insurance Corporation and the Michigan Office of Financial and Insurance Regulation issued a cease-and-desist order addressing the bank's business involving SWIFT, liquidity requirements, and deficiencies in controls intended to support compliance with the Bank Secrecy Act. The available reference does not describe the final disposition in detail. University Bank remains an active Michigan banking brand under University Bancorp.
History
University Bank traces its history to 1890, when The Newberry Bank was founded in Newberry, Michigan. The Upper Peninsula institution was the only bank in the town at the time and served the area's local banking needs. On May 3, 1908, it adopted the name The Newberry State Bank after receiving a banking charter from the State of Michigan. The next major phase began in 1988, when University Bancorp, controlled by Stephen Lange Ranzini and Joseph Ranzini, obtained a controlling interest in the bank. The new ownership expanded the institution into Sault Ste. Marie and increased its size. Rather than preserving the original branch network as the long-term basis of the business, the owners later pursued a substantial reorganization. In 1994, Newberry State Bank sold its loans, deposits, and branches to another Upper Peninsula bank. University Bancorp retained the charter, renamed the institution University Bank, and transferred it to Ann Arbor. The relocation was intended to establish a community bank in a larger, growing, and more diverse market where only one other community bank was reportedly serving the area. University Bank began operating in Ann Arbor in early 1996, with its headquarters located in the Leander J. Hoover Mansion. After the first Ann Arbor management team was replaced, Stephen Lange Ranzini took over direct day-to-day management in late 1997. The bank subsequently developed as the banking component of a wider University Bancorp financial-services organization. That organization added or operated businesses spanning retail residential mortgage origination, mortgage subservicing, Islamic banking, reverse mortgages, warehouse lending, and independent insurance services. The structure enabled the group to combine a local deposit-taking bank with businesses serving national or specialized mortgage markets. The bank's growth was accompanied by regulatory scrutiny. In 2009, the Federal Deposit Insurance Corporation and the Michigan Office of Financial and Insurance Regulation issued a cease-and-desist order. The order addressed the bank's conduct of business with SWIFT, required greater liquidity, and identified shortcomings in the system of controls used to support compliance with the Bank Secrecy Act. The available reference material does not provide a detailed account of subsequent enforcement outcomes or the date on which the order was terminated. University Bank has continued to operate as a Michigan community bank under University Bancorp. The broader organization has reported significant expansion in assets managed or held, customers, employees, and revenue, although the cited figures encompass University Bank together with Michigan-based subsidiaries and should not automatically be treated as standalone bank measures.
- 2009
Regulatory cease-and-desist order
[1]Federal and Michigan regulators issue an order concerning SWIFT-related activity, liquidity, and Bank Secrecy Act control systems.
- 1997
Ranzini assumes direct management
[1]Following changes to the initial management team, Stephen Lange Ranzini takes over direct day-to-day management in late 1997.
- 1996
Ann Arbor operations begin
[1]University Bank opens in Ann Arbor, with headquarters established in the Leander J. Hoover Mansion.
- 1994
Operating business is sold and charter is relocated
[1]Loans, deposits, and branches are sold to another Upper Peninsula bank while the charter is retained, renamed, and moved to Ann Arbor.
- 1988
University Bancorp acquires control
[1]University Bancorp, controlled by Stephen Lange Ranzini and Joseph Ranzini, acquires a controlling interest and later expands the bank into Sault Ste. Marie.
- 1908
Name changes to Newberry State Bank
[1]After receiving a Michigan state banking charter, the bank adopts the name The Newberry State Bank on May 3.
- 1890
The Newberry Bank is founded
[1]The institution begins operations in Newberry, Michigan, in the Upper Peninsula.
Products and positioning
A locally rooted Michigan community bank supported by a diversified financial-services group with capabilities in banking, residential mortgages, servicing, Islamic finance, reverse mortgages, warehouse lending, and insurance.
Banking
Community banking
University Bank provides traditional community-banking services from its Ann Arbor base, serving customers in the Ann Arbor metropolitan area and other Michigan markets associated with the University Bancorp organization. The available reference does not enumerate individual deposit, lending, or treasury products, so this entry describes the service category rather than naming specific account products.
Mortgage finance
Residential mortgage services
Residential mortgage capabilities are provided within the University Bancorp group through University Lending Group and Midwest Loan Services. The former is described as a retail residential mortgage originator, while the latter provides residential mortgage subservicing. These affiliated operations extend the group's activities beyond the bank's local community-banking franchise.
Specialty banking
Islamic banking
UIF Corporation, based in Southfield, is identified as an Islamic banking firm within the University Bancorp group. The reference material does not specify its individual products, customer segments, or current operating arrangement, but its inclusion illustrates the group's specialty-finance scope.
Mortgage finance
Reverse mortgage and warehouse lending
Midwest Loan Solutions is described as a reverse residential mortgage lender and warehouse lender. These activities complement the group's retail origination and servicing businesses and give it exposure to specialized residential-mortgage financing.
Insurance
Insurance services
Ann Arbor Insurance Centre is identified as an independent insurance agency associated with the University Bancorp group. The available material does not list its specific insurance lines or distribution model.
Controversies
2009
Cease-and-desist order over banking controls and liquidity
The FDIC and Michigan Office of Financial and Insurance Regulation issued a cease-and-desist order requiring University Bank to stop conducting business with SWIFT, maintain more liquidity, and improve controls supporting compliance with the Bank Secrecy Act. The available source does not provide the final resolution.
Brand decisions
1994
Rebrand and relocate the bank to Ann ArborStrategyBackground
The institution's operating assets were sold to another Upper Peninsula bank, while University Bancorp retained the charter and sought to build a community-bank presence in Ann Arbor.
Action taken
The charter was renamed University Bank and the bank was moved from Newberry to Ann Arbor, where it opened in early 1996.
Aftermath
The move established the present Ann Arbor identity and created the platform for the bank's subsequent role within University Bancorp's broader financial-services group.
1988
University Bancorp takes controlling interestStrategyBackground
University Bancorp, controlled by Stephen Lange Ranzini and Joseph Ranzini, acquired control of the Newberry State Bank.
Action taken
The new ownership expanded the institution into Sault Ste. Marie and increased its scale before the later Ann Arbor relocation.
Aftermath
The transaction began the bank's development under University Bancorp and preceded its transformation into the current University Bank brand.
Sources1 sources
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