UNIVERSITY BANCORP, INC.
AND SUBSIDIARIES
AUDITED CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2021 and 2020
UNIVERSITY BANCORP, INC. AND SUBSIDIARIES | |
TABLE OF CONTENTS | |
Page | |
Independent Auditor's Report | 1 |
Consolidated Financial Statements | |
Consolidated Balance Sheets | 3 |
Consolidated Statements of Operations and Comprehensive | |
Income | 5 |
Consolidated Statements of Equity | 8 |
Consolidated Statements of Cash Flows | 9 |
Notes to Consolidated Financial Statements | 11 |
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors and Stockholders of
University Bancorp, Inc. and Subsidiaries
Opinion
We have audited the accompanying consolidated financial statements of University Bancorp, Inc. and Subsidiaries (the "Company"), which comprise the consolidated balance sheets as of December 31, 2021 and 2020, and the related consolidated statements of operations and comprehensive income, equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
A member of UHY International, a network of independent accounting and consulting firms
To the Board of Directors and Stockholders of University Bancorp, Inc. and Subsidiaries Page Two
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Farmington Hills, Michigan
March 30, 2022
UNIVERSITY BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31,
2021 | 2020 | ||
ASSETS | |||
Cash and cash equivalents | $ | 96,916,528 | $ 199,851,084 |
Restricted cash | 617,061 | 509,453 | |
Total cash, cash equivalents and restricted cash | 97,533,589 | 200,360,537 | |
Investment securities, at amortized cost | 6,089,037 | 4,287,776 | |
Investment securities, at fair value | 4,156,218 | 464,185 | |
Federal Home Loan Bank stock | 1,113,400 | 1,113,400 | |
Loans and financings held for sale or | |||
assignment, at fair value | 137,214,609 | 185,856,685 | |
Loans held for sale at lower of cost or fair value | 673,713 | 1,324,924 | |
Loans and financings, net | 190,462,362 | 114,820,171 | |
Premises and equipment, net | 10,017,089 | 8,932,793 | |
Mortgage and financing servicing rights | 35,941,257 | 16,905,676 | |
Accounts receivable and advances to fund loans | 5,067,164 | 5,848,933 | |
Accrued interest and financing income receivable | 598,264 | 402,986 | |
Prepaid expenses | 2,295,936 | 1,998,948 | |
Prepaid income taxes | 1,107,694 | 78,896 | |
Derivatives | 2,983,702 | 8,075,434 | |
Goodwill | 422,981 | 422,981 | |
Customer relationships, net | 506,898 | 568,967 | |
Servicing remittances receivable | - | 1,534,406 | |
Operating lease right of use assets | 4,184,931 | 4,555,092 | |
Other assets | 14,854 | 124,046 | |
Total assets | $ 557,676,836 | ||
See notes to consolidated financial statements. | Page 3 |
$ 500,383,698
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University Bancorp Inc. published this content on 08 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 April 2022 21:45:46 UTC.