U & I Financial Corp. Reports First Quarter 2022 Financial Results

Rhea-AI Summary

U & I Financial Corp. (OTCQX:UNIF) reported record quarterly earnings of $2.1 million or $0.37 per share in Q1 2022, up from $1.6 million or $0.29 per share in Q1 2021, driven by increased net interest income. Total assets grew 16.3% to $479.1 million, net loans rose 19.0% to $352.3 million, and total deposits climbed 16.7% to $399.4 million. The company also announced a cash dividend and a stock repurchase program, reflecting confidence in long-term value despite potential economic challenges.

Positive

• Record quarterly earnings of $2.1 million, up 27.9% year-over-year.
• Total assets increased by 16.3% to $479.1 million.
• Net loans rose by 19.0% to $352.3 million.
• Total deposits grew by 16.7% to $399.4 million.
• Net interest margin improved to 4.66% from 4.09%.

Negative

• Gain on sale of SBA/USDA loans decreased to $420 thousand from $728 thousand.
• Allowance for loan losses to loans ratio decreased to 1.28% from 1.52%.

LYNNWOOD, WA / ACCESSWIRE / April 26, 2022 / U & I Financial Corp. (OTCQX:UNIF), the holding company for UniBank, today reported record quarterly earnings of $2.1 million or $0.37 per share in the first quarter, as compared to $1.6 million or $0.29 per share for the same quarter of 2021, increasing by $452 thousand or $0.08 per share, primarily from generating higher net interest income.

As of March 31, 2022, total assets reached a record, $479.1 million, increasing by $67.2 million or 16.3% from the year earlier period of $411.9 million. Net loans ended at a record $352.3 million, increasing by $56.3 million or 19.0% from the year earlier period of $296.1 million. Finally, total deposits grew by $57.1 million or 16.7% to a record, $399.4 million, from the year earlier period of $342.3 million.

During the first quarter, several loans that had been designated as Loans Held for Sale as of December 31, 2021, were reclassified to the Gross Loan portfolio at the lower-of-cost-or-market per U.S. GAAP. As of March 31, 2022, these loans totaled $15.8 million. There were no losses recognized from the reclassifications.

"We had excellent performance to start the year," said Peter Park, President and CEO. He added that, "In appreciation of our shareholders, the board issued a cash dividend in April in addition to the Stock Repurchase Program that started last December. Going forward, I expect that the cash dividends will continue on a semi-annual basis." He further added that, "Although the inflationary pressures and the threat of recession may have dampened market sentiments, I strongly believe that our business model and continued investments in our infrastructure will deliver long term value to our shareholders."

2022 First Quarter Financial Highlights

Total assets grew 16.3% to $479.1 million as compared to $411.9 million a year ago.

Net loans increased 19.0% to $352.3 million as compared to $296.1 million a year ago.

Total deposits grew 16.7% to $399.4 million as compared to $342.3 million a year ago.

Net income grew 27.9% to $2.1 million as compared to $1.6 million a year ago.

Net interest margin was 4.66% as compared to 4.09% a year ago.

Gain on sale of SBA/USDA loans was $420 thousand as compared to $728 thousand a year ago.

Return on average equity was 12.50% as compared to 11.00% a year ago.

Return on average assets was 1.94% as compared to 1.67% a year ago.

The allowance for loan losses to loans was 1.28% as compared to 1.52% a year ago.

Nonperforming assets to total assets was 0.06% as compared to 0.16% a year ago.

Efficiency ratio (noninterest expense divided by revenue) was 53.45% as compared to 58.83% 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. Founded in 2006 and based in Lynnwood, Washington, the Bank serves small to medium-sized businesses, professionals, and individuals with a particular emphasis on Asian American communities as well as various niche markets. 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; 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)

		Mar-22				Dec-21				Mar-21				Mar-21				Mar-21
(Dollars in thousands except EPS)		QTD				QTD				QTD				$ Var				% Var
Interest Income		$	4,878			$	4,955			$	3,936			$	942				23.9	%
Interest Expense			167				172				214				(47	)			(22.0	%)
Net Interest Income			4,711				4,783				3,722				989				26.6	%
Provision for Loan Losses			-				-				-				-				-
Gain on Sale of SBA/USDA Loans			420				804				728				(308	)			(42.3	%)
Loan Servicing Fees, Net of Amortization			109				151				147				(38	)			(25.9	%)
Other Non-interest Income			171				137				256				(85	)			(33.2	%)
Non-interest Income			700				1,092				1,131				(431	)			(38.1	%)
Salaries & Benefits			1,921				2,025				2,025				(104	)			(5.1	%)
Occupancy Expense			174				172				176				(2	)			(1.1	%)
Other Expense			797				834				654				143				21.9	%
Non-interest Expense			2,892				3,031				2,855				37				1.3	%
Net Income before Income Taxes			2,519				2,844				1,998				521				26.1	%
Income Taxes			449				540				380				69				18.2	%
Net Income/(Loss)		$	2,070			$	2,304			$	1,618			$	452				27.9	%
Total Outstanding Shares (in thousands)			5,527				5,562				5,579				(52	)
Basic Earnings per Share		$	0.37			$	0.41			$	0.29			$	0.08

Statement of Condition (Unaudited)

		Mar-22				Dec-21				Mar-21				Mar-21				Mar-21
(Dollars in thousands)		Qtr End				Qtr End				Qtr End				$ Var				% Var
Cash and Due from Banks		$	41,072			$	31,096			$	23,332			$	17,740				76.0	%
Investments			53,349				56,824				57,556				(4,207	)			-7.3	%
Loans Held for Sale			6,813				20,783				11,324				(4,511	)			-39.8	%
Gross Loans			356,890				326,340				300,621				56,269				18.7	%
Allowance for Loan Losses			(4,580	)			(4,575	)			(4,568	)			(12	)			0.3	%
Net Loans			352,310				321,765				296,053				56,257				19.0	%
Fixed Assets			7,043				7,190				5,785				1,258				21.7	%
Other Assets			18,478				18,025				17,813				665				3.7	%
Total Assets		$	479,065			$	455,683			$	411,863			$	67,202				16.3	%
Checking		$	107,618			$	98,487			$	76,148			$	31,470				41.3	%
NOW			19,343				11,546				9,858				9,485				96.2	%
Money Market			180,620				171,066				122,204				58,416				47.8	%
Savings			16,835				16,348				12,197				4,638				38.0	%
Certificates of Deposit			75,007				76,933				121,915				(46,908	)			-38.5	%
Total Deposits			399,423				374,380				342,322				57,101				16.7	%
Borrowed Funds			10,000				10,000				8,000				2,000				25.0	%
Other Liabilities			2,972				4,185				1,471				1,501				102.0	%
Total Liabilities			412,395				388,565				351,793				60,602				17.2	%
Shareholders' Equity			66,670				67,118				60,070				6,600				11.0	%
Total Liabilities & Equity		$	479,065			$	455,683			$	411,863			$	67,202				16.3	%

Financial Ratios

		Mar-22				Dec-21				Mar-21
(Dollars in thousands except BVS)		QTD				QTD				QTD
Performance Ratios
Return on Average Assets			1.94	%			2.15	%			1.67	%
Return on Average Equity			12.50	%			13.79	%			11.00	%
Net Interest Margin			4.66	%			4.79	%			4.09	%
Efficiency Ratio			53.45	%			52.95	%			58.83	%
Capital
Tier 1 Leverage Ratio			15.40	%			15.44	%			14.89	%
Common Equity Tier 1 Ratio			18.91	%			19.61	%			20.41	%
Tier 1 Risk-Based Capital Ratio			18.91	%			19.61	%			20.41	%
Total Risk-Based Capital Ratio			20.17	%			20.86	%			21.67	%
Book Value per Share		$	12.06			$	12.07			$	10.77
Asset Quality
Net Loan Charge-Offs (Recoveries)		$	(5	)		$	(14	)		$	0
Allowance for Loan Losses to Loans			1.28	%			1.40	%			1.52	%
Nonperforming Assets to Total Assets			0.06	%			0.06	%			0.16	%

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/698718/U-I-Financial-Corp-Reports-First-Quarter-2022-Financial-Results

FAQ

What were U & I Financial's earnings for Q1 2022?

U & I Financial reported earnings of $2.1 million or $0.37 per share for Q1 2022.

How much did total assets grow for U & I Financial in Q1 2022?

Total assets grew by 16.3% to $479.1 million as of March 31, 2022.

What is the net interest margin for U & I Financial in Q1 2022?

The net interest margin for Q1 2022 was 4.66%, up from 4.09% in Q1 2021.

What is the future dividend outlook for U & I Financial?

The company announced that cash dividends will continue on a semi-annual basis.