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U & I Financial Corp. Reports Fourth Quarter 2021 Financial Results

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LYNNWOOD, WA / ACCESSWIRE / January 26, 2022 / U & I Financial Corp. (OTCQX:UNIF), the holding company for UniBank, today reported record quarterly earnings of $2.3 million or $0.41 per share in the fourth quarter, as compared to $1.8 million or $0.33 per share for the same quarter of 2020, increasing by $484 thousand or $0.08 per share, primarily from generating higher net interest income. For the year, net income was an annual record of $8.5 million or $1.53 per share, increasing by $2.3 million or $0.41 per share from the same period last year, primarily from generating higher net interest income and not having to recognize the provision of loan losses this year.

As of December 31, 2021, total assets reached a record, $455.7 million, increasing by $51.8 million or 12.8% from the year earlier period of $403.9 million. Net loans ended at a record $321.8 million, increasing by $31.7 million or 10.9% from the year earlier period of $290.1 million. Finally, total deposits grew by $36.8 million or 10.9% to a record, $374.4 million, from the year earlier period of $337.6 million.

"We had a very profitable year and have continued to attain record growth quarter after quarter despite the economic uncertainties and public health challenges," said Peter Park, President and CEO. He added that, "As a way of rewarding our shareholders, the board has approved the Stock Repurchase Program which has significantly increased our stock liquidity since it commenced in December of 2021. Although we continue to see headwinds in the banking industry and the broader economy, we will be increasing investments in our infrastructure so that we can deliver consistent results for years to come."

2021 Fourth Quarter Financial Highlights

Total assets grew 12.8% to $455.7 million as compared to $403.9 million a year ago.

Net loans increased 10.9% to $321.8 million as compared to $290.1 million a year ago.

Total deposits grew 10.9% to $374.4 million as compared to $337.6 million a year ago.

Net income quarter-to-date grew 26.6% to $2.3 million as compared to $1.8 million one year ago.

Net income year-to-date grew 36.8% to $8.5 million as compared to $6.2 million one year ago.

Net interest margin for the year was 4.50% as compared to 4.22% one year ago.

Gain on sale of SBA/USDA loans for the year was $3.7 million as compared to $3.4 million a year ago.

Return on average equity for the year was 13.51% as compared to 11.45% a year ago.

Return on average assets for the year was 2.09% as compared to 1.68% a year ago.

The allowance for loan losses to loans, excluding PPP loans, was 1.42% as compared to 1.78% a year ago.

Nonperforming assets to total assets was 0.06% as compared to 0.19% a year ago.

Efficiency ratio (noninterest expense divided by revenue) for the year was 52.87% as compared to 52.22% a year ago.

About U & I Financial Corp.

UniBank, the wholly-owned subsidiary of U & I Financial Corp. (OTCQX: UNIF), is one of the highest performing banks in Washington state in terms of return on assets. Based in Lynnwood, Washington, the Bank was founded in 2006 to serve the small to medium-sized businesses, professionals, and residents with a particular emphasis on Korean and other ethnic minority communities. Customers can access their accounts in any of the 4 branches - Lynnwood, Bellevue, Federal Way and Tacoma - online, or through the Bank's ATM network.

For more information visit www.unibankusa.com or call (425) 275-9700.

Forward-Looking Statement Safe Harbor: This news release contains comments or information that constitutes forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Forward-looking statements describe U & I Financial Corp.'s projections, estimates, plans and expectations of future results and can be identified by words such as "believe," "intend," "estimate," "likely," "anticipate," "expect," "looking forward," and other similar expressions. They are not guarantees of future performance. Actual results may differ materially from the results expressed in these forward-looking statements, which because of their forward-looking nature, are difficult to predict. Investors should not place undue reliance on any forward-looking statement, and should consider factors that might cause differences including but not limited to the degree of competition by traditional and nontraditional competitors, declines in real estate markets, an increase in unemployment or sustained high levels of unemployment; changes in interest rates; adverse changes in local, national and international economies; changes in the Federal Reserve's actions that affect monetary and fiscal policies; changes in legislative or regulatory actions or reform, including without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act, the SBA's Paycheck Protection Program; demand for products and services; changes to the quality of the loan portfolio and our ability to succeed in our problem-asset resolution efforts; the ongoing uncertainties from COVID-19; the impact of technological advances; changes in tax laws; and other risk factors. U & I Financial Corp. undertakes no obligation to publicly update or clarify any forward-looking statement to reflect the impact of events or circumstances that may arise after the date of this release.

STATEMENT OF INCOME (Unaudited)

(Dollars in thousands except EPS)

Dec-21
QTD

Sep-21
QTD

Dec-20
QTD

Dec-21
YTD

Dec-20
YTD

Interest Income

$

4,955

$

4,639

$

3,961

$

17,864

$

16,772

Interest Expense

172

179

292

747

2,044

Net Interest Income

4,783

4,460

3,669

17,117

14,728

Provision for Loan Losses

-

-

250

-

1,750

Gain on Sale of SBA/USDA Loans

804

1,191

1,402

3,656

3,398

Loan Servicing Fees, Net of Amortization

151

139

76

634

574

Other Non-interest Income

137

252

196

864

608

Non-interest Income

1,092

1,582

1,674

5,154

4,580

Salaries & Benefits

2,025

2,290

1,922

8,265

6,742

Occupancy Expense

172

171

172

686

685

Other Expense

834

689

751

2,824

2,615

Non-interest Expense

3,031

3,150

2,845

11,775

10,042

Net Income before Income Taxes

2,844

2,892

2,248

10,496

7,516

Income Taxes

540

553

428

1,994

1,303

Net Income/(Loss)

$

2,304

$

2,339

$

1,820

$

8,502

$

6,213

Total Outstanding Shares (in thousands)

5,562

5,579

5,579

5,562

5,579

Basic Earnings per Share

$

0.41

$

0.42

$

0.33

$

1.53

$

1.12

Statement of Condition (Unaudited)

(Dollars in thousands)

Dec-21
Qtr End

Sep-21
Qtr End

Variance
Prior Qtr

Dec-20
Qtr End

Variance
Prior Year

Cash and Due from Banks

$

31,096

$

25,092

$

6,004

$

24,936

$

6,160

Investments

56,824

57,041

(217

)

58,573

(1,749

)

Loans Held for Sale

20,783

13,946

6,837

6,689

14,094

Gross Loans

326,340

322,810

3,530

294,618

31,722

Allowance for Loan Losses

(4,575

)

(4,577

)

2

(4,568

)

(7

)

Net Loans

321,765

318,233

3,532

290,050

31,715

Fixed Assets

7,190

5,676

1,514

5,891

1,299

Other Assets

18,025

17,632

393

17,759

266

Total Assets

$

455,683

$

437,620

$

18,063

$

403,898

$

51,785

Checking

$

98,487

$

103,786

$

(5,299

)

$

79,648

$

18,839

NOW

11,546

12,154

(608

)

8,837

2,709

Money Market

171,066

137,030

34,036

152,719

18,347

Savings

16,348

16,130

218

11,015

5,333

Certificates of Deposit

76,933

96,107

(19,174

)

85,349

(8,416

)

Total Deposits

374,380

365,207

9,173

337,568

36,812

Borrowed Funds

10,000

5,000

5,000

5,000

5,000

Other Liabilities

4,185

2,400

1,785

2,244

1,941

Total Liabilities

388,565

372,607

15,958

344,812

43,753

Shareholders' Equity

67,118

65,013

2,105

59,086

8,032

Total Liabilities & Equity

$

455,683

$

437,620

$

18,063

$

403,898

$

51,785

Financial Ratios

(Dollars in thousands except BVS)

Dec-21
QTD

Sep-21
QTD

Dec-20
QTD

Dec-21
YTD

Dec-20
YTD

Performance Ratios

Return on Average Assets

2.15

%

2.22

%

1.87

%

2.09

%

1.68

%

Return on Average Equity

13.79

%

14.43

%

12.59

%

13.51

%

11.45

%

Net Interest Margin

4.79

%

4.55

%

4.02

%

4.50

%

4.22

%

Efficiency Ratio

52.95

%

53.36

%

53.25

%

52.87

%

52.22

%

Capital

Tier 1 Leverage Ratio

15.44

%

15.21

%

14.65

%

Common Equity Tier 1 Ratio

19.61

%

19.73

%

19.79

%

Tier 1 Risk-Based Capital Ratio

19.61

%

19.73

%

19.79

%

Total Risk-Based Capital Ratio

20.86

%

20.98

%

21.04

%

Book Value per Share

$

12.07

$

11.65

$

10.59

Asset Quality

Net Loan Charge-Offs (Recoveries)

$

(14

)

$

(9

)

$

(13

)

Allowance for Loan Losses to Loans

1.40

%

1.42

%

1.55

%

Allowance Ratio, Excluding PPP Loans

1.42

%

1.48

%

1.78

%

Nonperforming Assets to Total Assets

0.06

%

0.07

%

0.19

%

U & I Financial Corp.
Investor Relations
Simon Bai, 425-275-9704

SOURCE: U & I Financial Corp. (Washington)



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https://www.accesswire.com/685443/U-I-Financial-Corp-Reports-Fourth-Quarter-2021-Financial-Results