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

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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