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

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LYNNWOOD, WA / ACCESSWIRE / October 26, 2021 / U & I Financial Corp. (OTCQX:UNIF), the holding company for UniBank, today reported record quarterly earnings of $2.3 million or $0.42 per share in the third quarter, as compared to $1.6 million or $0.28 per share for the same quarter of 2020, increasing by $768 thousand or 48.9%, primarily from not having to recognize the provision of loan losses this quarter and from generating higher net interest income.

As of September 30, 2021, total assets reached a record, $437.6 million, increasing by $44.7 million or 11.4% from the year earlier period of $393.0 million. Net loans ended at a record $318.2 million, increasing by $37.5 million or 13.4% from the year earlier period of $280.7 million. Finally, total deposits grew by $36.6 million or 11.1% to a record, $365.2 million, from the year earlier period of $328.6 million.

As of September 30, 2021, the SBA PPP loans totaled $12.9 million. During the year, a total of $40.8 million PPP loans was forgiven, of which $6.2 million was during the third quarter.

"We are very proud of our employees for attaining another quarter of record performance despite the current economic and public health challenges," said Peter Park, President and CEO. He added that, "Our business model of serving the minority and other underserved business communities through government guaranteed loans has proven to be exceptionally favorable during these uncertain times. Net loans increased by 13.4% from the prior year, despite $40.8 million total SBA PPP loans forgiven this year. As we look forward to passing the $500 million total assets milestone in the near future, we will continue to invest in our people and infrastructure to deliver consistent returns for our shareholders."

2021 Third Quarter Financial Highlights

Total assets grew 11.4% to $437.6 million as compared to $393.0 million a year ago.

Net loans increased 13.4% to $318.2 million as compared to $280.7 million a year ago.

Total deposits grew 11.1% to $365.2 million as compared to $328.6 million a year ago.

Net income quarter-to-date grew 48.9% to $2.3 million as compared to $1.6 million one year ago.

Net income year-to-date grew 41.1% to $6.2 million as compared to $4.4 million one year ago.

Net interest margin for the year was 4.40% as compared to 4.30% one year ago.

Gain on sale of SBA/USDA loans for the year was $2.9 million as compared to $2.0 million a year ago.

Return on average equity for the year was 13.41% as compared to 11.04% a year ago.

Return on average assets for the year was 2.07% as compared to 1.61% a year ago.

The allowance for loan losses to loans, excluding PPP loans, was 1.48% as compared to 1.77% a year ago.

Nonperforming assets to total assets was 0.07% as compared to 0.20% a year ago.

Efficiency ratio (noninterest expense divided by revenue) for the year was 53.33% as compared to 51.82% 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)

Sep-21

Jun-21

Sep-20

Sep-21

Sep-20

(Dollars in thousands except EPS)

QTD

QTD

QTD

YTD

YTD

Interest Income

$

4,639

$

4,334

$

4,316

$

12,909

$

12,811

Interest Expense

179

182

379

575

1,752

Net Interest Income

4,460

4,152

3,937

12,334

11,059

Provision for Loan Losses

-

-

800

-

1,500

Gain on Sale of SBA/USDA Loans

1,191

933

974

2,852

1,996

Loan Servicing Fees, Net of Amortization

139

198

163

483

498

Other Non-interest Income

252

218

109

727

412

Non-interest Income

1,582

1,349

1,246

4,062

2,906

Salaries & Benefits

2,290

1,925

1,627

6,240

4,820

Occupancy Expense

171

167

176

514

513

Other Expense

689

647

642

1,990

1,864

Non-interest Expense

3,150

2,739

2,445

8,744

7,197

Net Income before Income Taxes

2,892

2,762

1,938

7,652

5,268

Income Taxes

553

521

367

1,454

875

Net Income/(Loss)

$

2,339

$

2,241

$

1,571

$

6,198

$

4,393

Total Outstanding Shares (in thousands)

5,579

5,579

5,581

5,579

5,581

Basic Earnings per Share

$

0.42

$

0.41

$

0.28

$

1.12

$

0.80

Statement of Condition (Unaudited)

Sep-21

Jun-21

Variance

Sep-20

Variance

(Dollars in thousands)

Qtr End

Qtr End

Prior Qtr

Qtr End

Prior Year

Cash and Due from Banks

$

25,092

$

41,671

$

(16,579)

$

16,089

$

9,003

Investments

57,041

57,603

(562)

58,490

(1,449)

Loans Held for Sale

13,946

20,294

(6,348)

18,296

(4,350)

Gross Loans

322,810

279,058

43,752

285,010

37,800

Allowance for Loan Losses

(4,577)

(4,568)

(9)

(4,304)

(273)

Net Loans

318,233

274,490

43,743

280,706

37,527

Fixed Assets

5,676

5,800

(124)

5,864

(188)

Other Assets

17,632

17,233

399

13,524

4,108

Total Assets

$

437,620

$

417,091

$

20,529

$

392,969

$

44,651

Checking

$

103,786

$

88,562

$

15,224

$

77,163

$

26,623

NOW

12,154

9,441

2,713

14,768

(2,614)

Money Market

137,030

123,436

13,594

117,795

19,235

Savings

16,130

12,915

3,215

10,998

5,132

Certificates of Deposit

96,107

113,438

(17,331)

107,919

(11,812)

Total Deposits

365,207

347,792

17,415

328,643

36,564

Borrowed Funds

5,000

5,000

-

6,000

(1,000)

Other Liabilities

2,400

1,548

852

1,790

610

Total Liabilities

372,607

354,340

18,267

336,433

36,174

Shareholders' Equity

65,013

62,751

2,262

56,536

8,477

Total Liabilities & Equity

$

437,620

$

417,091

$

20,529

$

392,969

$

44,651

Financial Ratios

Sep-21

Jun-21

Sep-20

Sep-21

Sep-20

(Dollars in thousands except BVS)

QTD

QTD

QTD

YTD

YTD

Performance Ratios

Return on Average Assets

2.22%

2.29%

1.64%

2.07%

1.61%

Return on Average Equity

14.43%

14.65%

11.20%

13.41%

11.04%

Net Interest Margin

4.55%

4.55%

4.37%

4.40%

4.30%

Efficiency Ratio

53.36%

49.79%

47.17%

53.33%

51.82%

Capital

Tier 1 Leverage Ratio

15.21%

15.55%

14.45%

Common Equity Tier 1 Ratio

19.73%

20.83%

20.06%

Tier 1 Risk-Based Capital Ratio

19.73%

20.83%

20.06%

Total Risk-Based Capital Ratio

20.98%

22.08%

21.31%

Book Value per Share

$11.65

$11.25

$10.13

Asset Quality

Net Loan Charge-Offs (Recoveries)

($9)

$0

($9)

Allowance for Loan Losses to Loans

1.42%

1.64%

1.51%

Allowance Ratio, Excluding PPP Loans

1.48%

1.76%

1.77%

Nonperforming Assets to Total Assets

0.07%

0.15%

0.20%

U & I Financial Corp.
Investor Relations
Stephanie Yoon, 425-275-9727

SOURCE: U & I Financial Corp.



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