Continues Record Earnings and Growth

LYNNWOOD, Wash.–(BUSINESS WIRE)–U & I Financial Corp. (OTCQX: UNIF), the holding company for UniBank, today reported record quarterly earnings of $1.8 million or $0.33 per share in the fourth quarter, as compared to $1.4 million or $0.26 per share for the same quarter of 2019. For the year, net income was an annual record of $6.2 million or $1.12 per share, increasing by $589 thousand or $0.10 per share from the same period last year, despite $1.4 million in higher provision for loan losses expense.

As of December 31, 2020, total assets ended at a record, $403.9 million, increasing by $56.4 million or 16.2% from the year earlier period of $347.5 million. Net loans reached $290.1 million, increasing by $51.0 million or 21.4% from the year earlier period of $239.0 million. Finally, total deposits grew by $47.9 million or 16.5% to a record, $337.6 million, from the year earlier period of $289.6 million.

“We had an exceptional fourth quarter and year, despite the uncertain economic and public health conditions. The Bank exceeded $400 million in total assets, and made other achievements during the year such as being the #1 SBA lender in our market area among community banks, and opening our first LPO office,” said Peter Park, President and CEO. He added, “Although the financial performance of the Bank and the industry, as a whole, have generally been positive, there is still tremendous uncertainty. However, we believe that we are well positioned to succeed in the long run, due to the solid leadership by our Board and management, and sound business model and strategies. We thank our customers and shareholders for trusting in us, and look forward to another productive year.”

2020 Fourth Quarter Financial Highlights

Total assets grew 16.2% to $403.9 million as compared to $347.5 million a year ago.

Net loans grew 21.4% to $290.1 million as compared to $239.0 million a year ago.

Loans held for sale increased 178.7% to $6.7 million as compared to $2.4 million a year ago.

Total deposits grew 16.5% to $337.6 million as compared to $289.6 million a year ago.

Net income year-to-date grew 10.5% to $6.2 million as compared to $5.6 million one year ago.

Net interest margin for the year was 4.22% as compared to 4.20% one year ago.

Gain on sale of SBA/USDA loans for the year was $3.4 million as compared to $2.8 million a year ago.

Return on average equity for the year was 11.45% as compared to 12.03% a year ago.

Return on average assets for the year was 1.68% as compared to 1.78% a year ago.

The allowance for loan losses to loans, excluding PPP loans, was 1.78% as compared to 1.14% a year ago.

Nonperforming assets to total assets was 0.19% as compared to 0.21% a year ago.

Efficiency ratio (noninterest expense divided by revenue) for the year was 52.22% as compared to 55.23% 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)
				Dec-20				Sep-20				Dec-19						Dec-20				Dec-19
(Dollars in thousands except EPS)				QTD				QTD				QTD						YTD				YTD
Interest Income				$	3,961			$	4,316			$	3,988					$	16,772			$	16,291
Interest Expense					292				379				961						2,044				3,783
Net Interest Income					3,669				3,937				3,027						14,728				12,508
Provision for Loan Losses					250				800				40						1,750				390
Gain on Sale of SBA/USDA Loans					1,402				974				992						3,398				2,841
Gain on Sale of Securities					–				–				–						78				151
Other Non-interest Income					272				272				209						1,104				876
Non-interest Income					1,674				1,246				1,201						4,580				3,868
Salaries & Benefits					1,922				1,627				1,446						6,742				5,854
Occupancy Expense					172				176				156						685				637
Other Expense					751				642				762						2,615				2,514
Non-interest Expense					2,845				2,445				2,364						10,042				9,005
Net Income before Income Taxes					2,248				1,938				1,824						7,516				6,981
Income Taxes					428				367				389						1,303				1,357
Net Income/(Loss)					1,820				1,571				1,435					$	6,213			$	5,624
Total Outstanding Shares (in thousands)					5,581				5,581				5,573						5,581				5,573
Basic Earnings per Share				$	0.33			$	0.28			$	0.26					$	1.12			$	1.02
Statement of Condition (Unaudited)
				Dec-20				Sep-20				Variance						Dec-19				Variance
(Dollars in thousands)				Qtr End				Qtr End				Prior Qtr						Qtr End				Prior Year
Cash and Due from Banks				$	24,936			$	16,089			$	8,847					$	38,754			($	13,818	)
Investments					58,573				58,490				83						48,994				9,579
Loans Held for Sale					6,689				18,296				(11,607	)					2,400				4,289
Gross Loans					294,618				285,010				9,608						241,788				52,830
Allowance for Loan Losses					(4,568	)			(4,304	)			(264	)					(2,775	)			(1,793	)
Net Loans					290,050				280,706				9,344						239,013				51,037
Fixed Assets					5,891				5,864				27						6,234				(343	)
Other Assets					17,759				13,524				4,235						12,060				5,699
Total Assets				$	403,898			$	392,969			$	10,929					$	347,455			$	56,443
Checking					79,648				77,163				2,485						44,988				34,660
NOW					8,837				14,768				(5,931	)					8,767				70
Money Market					152,719				117,795				34,924						121,622				31,097
Savings					11,015				10,998				17						9,059				1,956
Certificates of Deposit					85,349				107,919				(22,570	)					105,203				(19,854	)
Total Deposits					337,568				328,643				8,925						289,639				47,929
Borrowed Funds					5,000				6,000				(1,000	)					5,000				–
Other Liabilities					2,244				1,790				454						2,361				(117	)
Total Liabilities					344,812				336,433				8,379						297,000				47,812
Shareholders’ Equity					59,086				56,536				2,550						50,455				8,631
Total Liabilities & Equity				$	403,898			$	392,969			$	10,929					$	347,455			$	56,443
Financial Ratios
				Dec-20				Sep-20				Dec-19						Dec-20				Dec-19
(Dollars in thousands except BVS)				QTD				QTD				QTD						YTD				YTD
Performance Ratios
Return on Average Assets					1.87	%			1.64	%			1.75	%					1.68	%			1.78	%
Return on Average Equity					12.59	%			11.20	%			11.50	%					11.45	%			12.03	%
Net Interest Margin					4.02	%			4.37	%			3.95	%					4.22	%			4.20	%
Efficiency Ratio					53.25	%			47.17	%			55.91	%					52.22	%			55.23	%
Capital
Tier 1 Leverage Ratio					14.65	%			14.45	%			15.38	%
Common Equity Tier 1 Ratio					19.79	%			20.06	%			18.27	%
Tier 1 Risk-Based Capital Ratio					19.79	%			20.06	%			18.27	%
Total Risk-Based Capital Ratio					21.04	%			21.31	%			19.28	%
Book Value per Share				$	10.59			$	10.13			$	9.05
Asset Quality
Net Loan Charge-Offs (Recoveries)				($13		)		($9		)		($15		)
Allowance for Loan Losses to Loans					1.55	%			1.51	%			1.14	%
Allowance Ratio, Excluding PPP Loans					1.78	%			1.77	%			1.14	%
Nonperforming Assets to Total Assets					0.19	%			0.20	%			0.21	%

 

Contacts

U & I Financial Corp.

Investor Relations

Stephanie Yoon, 425-275-9727