On behalf of the shareholders and employees of University Bank, we are pleased to report on the bank's activities and financial condition for the year ending December 31, 2004.

2004 was a year of growth for the bank. Assets grew 10% bringing total assets to over $115 million. Simultaneously, the bank's equity increased. We continue to be a well-capitalized bank.

As the leader in improving our urban community, University Bank provides innovative, much-needed financial services to St. Paul/Minneapolis' urban core. As Minnesota's first CDFI Bank we are proud to state that over 70% of the loans we have made are in economically distressed census tracks. We appreciate your business and look forward to serving you in the year 2005.

Sincerely,
 
David C. Reiling, President