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

Rhea-AI Summary

U & I Financial Corp. (OTCQX:UNIF) reported record fourth quarter earnings of $2.3 million or $0.41 per share, up from $1.8 million or $0.33 per share a year earlier. For 2021, net income reached $8.5 million or $1.53 per share, an increase of $2.3 million year-over-year. Total assets grew by 12.8% to $455.7 million, while net loans and deposits also saw significant growth. The company initiated a stock repurchase program to enhance liquidity and plans to invest in infrastructure amid ongoing industry challenges.

Positive

• Record net income of $8.5 million for 2021, up 36.8% year-over-year.
• Quarterly earnings increased by $484 thousand, attributed to higher net interest income.
• Total assets grew by 12.8%, reaching $455.7 million.
• Net loans increased by 10.9% to $321.8 million.
• Total deposits rose by 10.9% to $374.4 million.
• Stock repurchase program approved to enhance liquidity.

Negative

• Efficiency ratio slightly increased to 52.87% compared to 52.22% year-over-year.
• Despite growth, headwinds remain in the banking industry.

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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FAQ

What are U & I Financial Corp.'s Q4 2021 earnings results?

U & I Financial Corp. reported fourth quarter earnings of $2.3 million or $0.41 per share, compared to $1.8 million or $0.33 per share in Q4 2020.

What was U & I Financial Corp.'s total asset value as of December 31, 2021?

As of December 31, 2021, U & I Financial Corp. reported total assets of $455.7 million.

How much did U & I Financial Corp.'s net income increase in 2021?

Net income for U & I Financial Corp. increased by $2.3 million to a record $8.5 million in 2021.

What is the stock symbol for U & I Financial Corp.?

The stock symbol for U & I Financial Corp. is UNIF.

What are the main drivers behind U & I Financial Corp.'s earnings growth?

The main drivers behind U & I Financial Corp.'s earnings growth include higher net interest income and not having to recognize provisions for loan losses.