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

Rhea-AI Summary

U & I Financial Corp. (OTCQX:UNIF) reported record earnings of $3.4 million ($0.62 per share) for Q4 2022, up from $2.3 million ($0.41 per share) in Q4 2021, reflecting an increase of $1.1 million or 47.8% due to higher net interest income. Total assets rose 28.8% to $586.8 million, with net loans up 41.2% to $454.4 million, and total deposits increasing 30.4% to $488.3 million. Year-to-date net income also increased 30.9% to $11.1 million. However, the outlook for 2023 is uncertain due to inflation and recession risks, though the company remains committed to infrastructure investments to support future growth.

Positive

• Record Q4 earnings of $3.4 million, up 47.5% YoY.
• Total assets increased 28.8% to $586.8 million.
• Net loans grew 41.2% to $454.4 million.
• Total deposits rose 30.4% to $488.3 million.
• Return on average equity improved to 16.29%.

Negative

• Outlook for 2023 remains uncertain due to inflation and recession risks.
• Gain on sale of SBA/USDA loans decreased to $2.5 million from $3.7 million YoY.

LYNNWOOD, WA / ACCESSWIRE / January 26, 2023 / U & I Financial Corp. (OTCQX:UNIF), the holding company for UniBank, today reported record quarterly earnings of $3.4 million or $0.62 per share in the fourth quarter, as compared to $2.3 million or $0.41 per share for the same quarter of 2021, increasing by $1.1 million or $0.21 per share, primarily from generating higher net interest income.

As of December 31, 2022, total assets reached $586.8 million, increasing by $131.1 million or 28.8% from the year earlier period of $455.7 million. Net loans ended at $454.4 million, increasing by $132.7 million or 41.2% from the year earlier period of $321.8 million. Finally, total deposits grew by $113.9 million or 30.4% to $488.3 million from the year earlier period of $374.4 million.

"We are pleased to announce very strong performances for the quarter and year," said Peter Park, President and CEO. He added that, "As mentioned previously, the outlook for 2023 remains uncertain due to the persistent inflationary pressures and the risk of recession ahead of us. However, we believe that we are prepared to weather the storm due to our conservative underwriting and sufficient capital. In fact, we will continue to invest in our infrastructure during this period so that we are well positioned to resume our growth when the economy improves."

2022 Fourth Quarter Financial Highlights

Total assets grew 28.8% to $586.8 million as compared to $455.7 million a year ago.

Net loans increased 41.2% to $454.4 million as compared to $321.8 million a year ago.

Total deposits grew 30.4% to $488.3 million as compared to $374.4 million a year ago.

Net income quarter-to-date grew 47.5% to $3.4 million as compared to $2.3 million a year ago.

Net income year-to-date grew 30.9% to $11.1 million as compared to $8.5 million a year ago.

Net interest margin for the year was 4.79% as compared to 4.50% a year ago.

Gain on sale of SBA/USDA loans for the year was $2.5 million as compared to $3.7 million a year ago.

Return on average equity for the year was 16.29% as compared to 13.51% a year ago.

Return on average assets for the year was 2.22% as compared to 2.09% a year ago.

The allowance for loan losses to loans was 1.00% as compared to 1.40% a year ago.

Nonperforming assets to total assets was 0.05% as compared to 0.06% a year ago.

Efficiency ratio (noninterest expense divided by revenue) for the year was 48.04% as compared to 52.87% 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 across the United States with a particular emphasis on government guaranteed loan programs. 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)
	Dec-22				Sep-22				Dec-21				Dec-22				Dec-21
(Dollars in thousands except EPS)	QTD				QTD				QTD				YTD				YTD
Interest Income	$	8,418			$	7,017			$	4,955			$	25,914			$	17,864
Interest Expense		1,801				761				172				2,986				747
Net Interest Income		6,617				6,256				4,783				22,928				17,117
Provision for Loan Losses		-				-				-				-				-
Gain on Sale of SBA/USDA Loans		1,031				324				804				2,512				3,656
Loan Servicing Fees, Net of Amortization		123				182				151				494				634
Other Non-interest Income		162				180				137				687				864
Non-interest Income		1,316				686				1,092				3,693				5,154
Salaries & Benefits		2,341				2,036				2,025				8,316				8,265
Occupancy Expense		188				183				172				726				686
Other Expense		1,078				987				834				3,746				2,824
Non-interest Expense		3,607				3,206				3,031				12,788				11,775
Net Income before Income Taxes		4,326				3,736				2,844				13,833				10,496
Income Taxes		927				711				540				2,704				1,994
Net Income/(Loss)	$	3,399			$	3,025			$	2,304			$	11,129			$	8,502
Total Outstanding Shares (in thousands)		5,441				5,461				5,562				5,441				5,562
Basic Earnings per Share	$	0.62			$	0.55			$	0.41			$	2.03			$	1.53
Statement of Condition (Unaudited)
	Dec-22				Sep-22				Dec-21				Variance				Variance
(Dollars in thousands)	Qtr End				Qtr End				Qtr End				Prior Qtr				Prior Year
Cash and Due from Banks	$	42,003			$	36,451			$	31,096			$	5,552			$	10,907
Investments		51,062				49,855				56,824				1,207				(5,762	)
Loans Held for Sale		12,527				5,078				20,783				7,449				(8,256	)
Gross Loans		459,021				438,055				326,340				20,966				132,681
Allowance for Loan Losses		(4,580	)			(4,580	)			(4,575	)			-				(5	)
Net Loans		454,441				433,475				321,765				20,966				132,676
Fixed Assets		6,983				7,129				7,190				(146	)			(207	)
Other Assets		19,796				19,530				18,025				266				1,771
Total Assets	$	586,812			$	551,518			$	455,683			$	35,294			$	131,129
Checking	$	117,491			$	123,433			$	98,487			$	(5,942	)		$	19,004
NOW		13,969				13,767				11,546				202				2,423
Money Market		199,303				132,774				171,066				66,529				28,237
Savings		14,042				15,227				16,348				(1,185	)			(2,306	)
Certificates of Deposit		143,449				184,054				76,933				(40,605	)			66,516
Total Deposits		488,254				469,255				374,380				18,999				113,874
Borrowed Funds		22,000				10,000				10,000				12,000				12,000
Other Liabilities		4,453				3,836				4,185				617				268
Total Liabilities		514,707				483,091				388,565				31,616				126,142
Shareholders' Equity		72,105				68,427				67,118				3,678				4,987
Total Liabilities & Equity	$	586,812			$	551,518			$	455,683			$	35,294			$	131,129
Financial Ratios
	Dec-22				Sep-22				Dec-21				Dec-22				Dec-21
(Dollars in thousands except BVS)	QTD				QTD				QTD				YTD				YTD
Performance Ratios
Return on Average Assets		2.37	%			2.27	%			2.15	%			2.22	%			2.09	%
Return on Average Equity		19.26	%			17.34	%			13.79	%			16.29	%			13.51	%
Net Interest Margin		4.82	%			4.85	%			4.79	%			4.79	%			4.50	%
Efficiency Ratio		45.47	%			46.18	%			52.95	%			48.04	%			52.87	%
Capital
Tier 1 Leverage Ratio		12.86	%			13.34	%			15.44	%
Common Equity Tier 1 Ratio		15.95	%			16.34	%			19.61	%
Tier 1 Risk-Based Capital Ratio		15.95	%			16.34	%			19.61	%
Total Risk-Based Capital Ratio		16.95	%			17.40	%			20.86	%
Book Value per Share	$	13.24			$	12.53			$	12.07
Asset Quality
Net Loan Charge-Offs (Recoveries)	$	0			$	0			$	(14	)
Allowance for Loan Losses to Loans		1.00	%			1.05	%			1.40	%
Nonperforming Assets to Total Assets		0.05	%			0.05	%			0.06	%

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/736911/U-I-Financial-Corp-Reports-Fourth-Quarter-2022-Financial-Results

FAQ

What were U & I Financial Corp.'s Q4 earnings for 2022?

U & I Financial Corp. reported Q4 2022 earnings of $3.4 million, or $0.62 per share.

How much did total assets grow by for U & I Financial Corp. in 2022?

Total assets grew by 28.8% to reach $586.8 million as of December 31, 2022.

What is the outlook for U & I Financial Corp. in 2023?

The outlook for U & I Financial Corp. in 2023 is uncertain due to persistent inflation and recession risks.

How did net loans perform for U & I Financial Corp. in 2022?

Net loans increased by 41.2% to $454.4 million in 2022.

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

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