UNIB Uuniversity Bancorp Inc Michigan (QB)

University Bancorp, Inc. (OTCQB: UNIB) announced that its University Bank subsidiary has invested $1.13 million to acquire 100% of a second independent insurance agency located in Ann Arbor, effective January 1, 2013. This agency, Ann Arbor Insurance Centre, has been in the insurance business locally for 32 years and has valuable appointments with a number of insurance firms above and beyond the 49 insurance firms University Bank's insurance agency, University Insurance & Investment Services, currently represents. Among the top insurance firms of Ann Arbor Insurance Centre are Auto-Owners Insurance, Citizens Insurance and Grange Insurance.

University Bank has been in the insurance business locally for 17 years and this line of business has been consistently profitable. This acquisition will increase the revenues and profits of University Bank from the insurance business, with insurance revenues growing from 0.8% of overall revenue, to 1.2% of overall consolidated revenue of approximately $42 million. Our newly enlarged insurance agency will be a solid profit contributor to the 2013 results. The acquisition will allow us to both offer customers choices from these additional quality insurers and provide them with better service. Our combined agencies will have a total of five skilled and experienced insurance agency employees who will all be available to help us meet our customers' insurance needs: Rebecca Johnston, Cathy Benefiel, Joni Gallo, Shawn Shepherd and Edie Jackson.

Over the next few months we will merge our two insurance agencies so that all five insurance agency employees will be able to work together in one office. To accomplish this, Shawn Shepherd and Edie Jackson will move in the next few months to the headquarters of Ann Arbor Insurance Centre, which is at 2621 Carpenter Road, Ann Arbor, MI. This location has very convenient access being just east of the U.S. 23 freeway, a quarter mile south of Washtenaw Avenue. University Insurance & Investment Services' current phone number will be automatically routed to that office so we will receive our customers' calls without interruption. We are planning a customer open house at Ann Arbor Insurance Centre in the near term.

University Bank's insurance agency's name will change to Ann Arbor Insurance Centre later in 2013. Our combined insurance agency will continue to be 100% owned by University Bank. We will be quoting our insurance customers at renewal time through both our current and our new carriers to make sure each customer is getting the very best combination of premium, coverage and claims paying service. If we can save our customers money we will be contacting them to get them switched over to a new carrier.

Shareholders and investors are encouraged to refer to the financial information including the audited financial statements, available on our investor relations web page at: http://www.university-bank.com/Bancorp.html.

Ann Arbor-based University Bancorp owns 100% of University Bank which, together with its subsidiaries, holds and manages a total of over $12.2 billion in loans and assets and our 328 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.

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, revenue 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: 734-741-5858, Ext. 9226 Email: Email Contact