University Bank Is the Top Rated Michigan Bank According to the IDC Rating Agency

  University Bancorp's (OTCQB: UNIB) wholly owned subsidiary University Bank announced that it had received a perfect score of 300 out of 300 from IDC Financial Publishing, Inc. (IDC) based on the June 30, 2013 Call Report information submitted by all banks to the Federal Deposit Insurance Corporation (FDIC). Based on this quarter's rankings, University Bank is one of only two banks headquartered in Michigan with a perfect rating from IDC. IDC is generally considered to be the best and most prestigious organization that rates the financial quality and strength of banks in the U.S. University Bank is a community bank headquartered in Ann Arbor, with its key subsidiaries headquartered in Farmington Hills, Clinton Township and Houghton, Michigan, and was founded in 1890.

Stephen Lange Ranzini, University Bank's President & CEO, noted, "For over a year we've been rated by IDC as being nearly perfect, and it is exciting that we are now rated as perfect. It is a huge honor to the staff and customers of the bank and the 810 shareholders of the bank's holding company, University Bancorp, Inc., to receive this perfect score from IDC. Without the support from quality, loyal staff, customers and shareholders, we could not have achieved this key accomplishment."

IDC Financial Publishing, Inc. (IDC) uses its unique CAMEL rankings of financial ratios to determine the safety ratings of banks, bank holding companies, savings institutions, and credit unions. IDC publishes its methodology for ranking financial institutions for safety, allowing banks, savings institutions, credit unions, and any client to understand financial ratios and rank for a specific institution. IDC Financial Publishing, Inc. does not accept compensation prior to or as a requirement to rate an institution, and is therefore impartial when determining a rank. For more information about IDC, see: www.idcfp.com.

Shareholders and investors are encouraged to refer to the extensive financial information available on University Bank and University Bancorp including the audited financial statements, strategic plan and prior press releases, available on our investor relations web page at: http://www.university-bank.com/Bancorp/.

Ann Arbor-based University Bancorp owns 100% of University Bank which, together with its subsidiaries, holds and manages a total of over $13.3 billion in loans and assets and our 333 employees make us the 9th largest bank based in Michigan. University Bank is an FDIC-insured, locally owned and managed community bank, and meets the financial needs of its community through its creative and innovative services. Founded in 1890, University Bank® is proud to have been selected as the "Community Bankers of the Year" by American Banker magazine and as the recipient of the American Bankers Association's Community Bank Award. University Bank is a Member FDIC. The operating subsidiaries of University Bank which are members of our corporate family, ranked by their size of revenues are:

• Midwest Loan Services, a residential mortgage subservicer based in Houghton, Michigan;
• University Lending Group, a retail residential mortgage originator based in Clinton Township, Michigan;
• University Islamic Financial, an Islamic banking firm based in Farmington Hills, Michigan;
• Community Banking, based in Ann Arbor, Michigan, which provides traditional community banking services in the Ann Arbor area.
• Ann Arbor Insurance Centre, an independent insurance agency based in Ann Arbor, Michigan.

CAUTIONARY STATEMENT: This press release contains certain forward-looking statements that involve risks and uncertainties. Forward-looking statements include, but are not limited to, statements concerning future growth in assets, pre-tax income and net income, budgeted income levels, the sustainability of past results, and other expectations and/or goals. Such statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, economic, competitive, governmental and technological factors affecting our operations, markets, products, services, interest rates and fees for services. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

Contact: Stephen Lange Ranzini President and CEO Phone: [phone], Ext. 9226 Email: Email Contact