University Bancorp, Inc. reported audited earnings results for the fourth quarter and full year ended December 31, 2016. Net income for the three months ended December 31, 2016 was $1,538,746 or $0.302 per share for the period, versus was $183,704 or $0.036 per share for the same 2015 period. Results in fourth quarter of 2016 were boosted by a rise in valuation of the company's mortgage servicing rights portfolio, which was only partially offset by the typical seasonal mortgage origination slowdown as well as several non-recurring, unusual expenses, which had an overall positive cumulative impact of $1,319,289, before income taxes.

The company announced that it had audited net income attributable to the company common stock shareholders in 2016 of $3,806,197 or $0.75 per share for the year, versus audited net income of $3,139,217 or $0.62 per share for 2015. For 2016, the company had a return on equity attributable to common stock shareholders of 25.7% on initial equity of $14,821,418. Return on equity in 2015 was 30.3% on initial equity of $10,356,429.

The company provided earnings guidance for the full year of 2017. The company currently projects budgeted annual net income in 2017 of at least $4,400,000 or $0.85 per share. This forecast includes the company's estimated results in the first quarter of 2017 plus the company's original budget for the final three quarters of 2017, adjusted for all known major changes. The forecast assumes no change in mortgage interest rates from current levels. In first quarter of 2017 the company had origination levels that were 24% ahead of the prior year, and applications in March 2017 were the second high month in the history of the bank, slightly under the record set in August 2016.