U & I Financial Corp. Reports Fourth Quarter 2023 Financial Results
- None.
- Decrease in net income by 34.9% from $11.1 million to $7.2 million
- Decrease in return on average equity from 16.29% to 9.44%
- Increase in provision for credit losses from $0 to $3.2 million
- Increase in nonperforming assets to total assets from 0.05% to 1.71%
- Increase in efficiency ratio from 48.04% to 50.22%
LYNNWOOD, WA / ACCESSWIRE / January 30, 2024 / U & I Financial Corp. (OTCQX:UNIF), the holding company for UniBank, today reported quarterly net loss of
As of December 31, 2023, Total Assets reached
"The Bank faced significant earnings challenges for the fourth quarter primarily due to the provision for potential deterioration of certain credit relationships. However, under the CECL model we believe that the Bank has adequately built the reserve as of year-end, freeing the Bank to focus on future earnings," said Board Chair D. Benjamin Lee. He added that, "Although the earnings outlook appears subdued this year as with many community banks, UniBank will continue to advance with its strong capital position, prominent community standing, and solid liquidity position."
2023 Fourth Quarter Financial Highlights
Total assets grew
Net loans increased
Total deposits grew
Net interest margin for the year was
Provision for Credit Losses for the year was
Gain on sale of SBA/USDA loans for the year was
Net income for the year decreased
Return on average equity for the year was
Return on average assets for the year was
The allowance for loan losses to loans was
Nonperforming assets to total assets was
Efficiency ratio (noninterest expense divided by revenue) for the year was
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.
U & I Financial Corp.
Investor Relations
Simon Bai, 425-275-9704
STATEMENT OF INCOME (Unaudited)
| Dec-23 | Sep-23 | Dec-22 | Dec-23 | Dec-22 | ||||||||||||
(Dollars in thousands except EPS) | QTD | QTD | QTD | YTD | YTD | |||||||||||
Interest Income | $ | 9,374 | $ | 9,616 | $ | 8,418 | $ | 37,720 | $ | 25,914 | ||||||
Interest Expense | 4,592 | 4,173 | 1,801 | 15,388 | 2,986 | |||||||||||
Net Interest Income | 4,782 | 5,443 | 6,617 | 22,332 | 22,928 | |||||||||||
Provision for Credit Losses | 3,069 | 158 | - | 3,227 | - | |||||||||||
Gain on Sale of SBA/USDA Loans | (23 | ) | 609 | 1,031 | 1,410 | 2,512 | ||||||||||
Loan Servicing Fees, Net of Amortization | 119 | 164 | 123 | 660 | 494 | |||||||||||
Other Non-interest Income | 172 | 176 | 162 | 850 | 687 | |||||||||||
Non-interest Income | 268 | 949 | 1,316 | 2,920 | 3,693 | |||||||||||
Salaries & Benefits | 1,250 | 1,962 | 2,341 | 8,241 | 8,316 | |||||||||||
Occupancy Expense | 188 | 187 | 188 | 729 | 726 | |||||||||||
Other Expense | 586 | 1,120 | 1,078 | 3,712 | 3,746 | |||||||||||
Non-interest Expense | 2,024 | 3,269 | 3,607 | 12,682 | 12,788 | |||||||||||
Net Income before Income Taxes | (43 | ) | 2,965 | 4,326 | 9,343 | 13,833 | ||||||||||
Income Taxes | 115 | 610 | 927 | 2,101 | 2,704 | |||||||||||
Net Income/(Loss) | $ | (158 | ) | $ | 2,355 | $ | 3,399 | 7,242 | $ | 11,129 | ||||||
Total Outstanding Shares (in thousands) | 5,466 | 5,466 | 5,441 | 5,466 | 5,441 | |||||||||||
Basic Earnings (Loss) per Share | $ | (0.03 | ) | $ | 0.43 | $ | 0.62 | $ | 1.33 | $ | 2.03 | |||||
| Statement of Condition (Unaudited) | ||||||||||||||||
| Dec-23 | Sep-23 | Dec-22 | Variance | Variance | ||||||||||||
(Dollars in thousands) | Qtr End | Qtr End | Qtr End | Prior Qtr | Prior Year | |||||||||||
Cash and Due from Banks | $ | 61,254 | $ | 58,923 | $ | 42,003 | $ | 2,331 | $ | 19,251 | ||||||
Investments | 51,346 | 48,841 | 51,062 | 2,505 | 284 | |||||||||||
Loans Held for Sale | - | - | 12,527 | - | (12,527 | ) | ||||||||||
Gross Loans | 490,636 | 482,132 | 459,021 | 8,504 | 31,615 | |||||||||||
Allowance for Credit Losses | (8,302 | ) | (5,234 | ) | (4,580 | ) | (3,068 | ) | (3,722 | ) | ||||||
Net Loans | 482,334 | 476,898 | 454,441 | 5,436 | 27,893 | |||||||||||
Fixed Assets | 6,438 | 6,577 | 6,983 | (139 | ) | (545 | ) | |||||||||
Other Assets | 21,193 | 20,978 | 19,796 | 215 | 1,397 | |||||||||||
Total Assets | $ | 622,565 | $ | 612,217 | $ | 586,812 | $ | 10,348 | $ | 35,753 | ||||||
Checking | $ | 100,135 | $ | 105,770 | $ | 117,491 | $ | (5,635 | ) | $ | (17,356 | ) | ||||
NOW | 13,504 | 14,588 | 13,969 | (1,084 | ) | (465 | ) | |||||||||
Money Market | 200,966 | 197,296 | 199,303 | 3,670 | 1,663 | |||||||||||
Savings | 8,063 | 9,050 | 14,042 | (987 | ) | (5,979 | ) | |||||||||
Certificates of Deposit | 191,733 | 195,429 | 143,449 | (3,696 | ) | 48,284 | ||||||||||
Total Deposits | 514,401 | 522,133 | 488,254 | (7,732 | ) | 26,147 | ||||||||||
Borrowed Funds | 20,000 | 8,000 | 22,000 | 12,000 | (2,000 | ) | ||||||||||
Other Liabilities | 8,694 | 3,916 | 4,453 | 4,778 | 4,241 | |||||||||||
Total Liabilities | 543,095 | 534,049 | 514,707 | 9,046 | 28,388 | |||||||||||
Shareholders' Equity | 79,470 | 78,168 | 72,105 | 1,302 | 7,365 | |||||||||||
Total Liabilities & Equity | $ | 622,565 | $ | 612,217 | $ | 586,812 | $ | 10,348 | $ | 35,753 | ||||||
| Financial Ratios | ||||||||||||||||
| Dec-23 | Sep-23 | Dec-22 | Dec-23 | Dec-22 | ||||||||||||
(Dollars in thousands) | Qtr End | Qtr End | Qtr End | YTD | YTD | |||||||||||
Performance Ratios | ||||||||||||||||
Return on Average Assets | -0.10 | % | 1.54 | % | 2.37 | % | 1.20 | % | 2.22 | % | ||||||
Return on Average Equity | -0.80 | % | 11.92 | % | 19.26 | % | 9.44 | % | 16.29 | % | ||||||
Net Interest Margin | 3.23 | % | 3.65 | % | 4.82 | % | 3.84 | % | 4.79 | % | ||||||
Efficiency Ratio | 40.08 | % | 51.14 | % | 45.47 | % | 50.22 | % | 48.04 | % | ||||||
Capital | ||||||||||||||||
Tier 1 Leverage Ratio | 13.13 | % | 13.29 | % | 12.86 | % | ||||||||||
Common Equity Tier 1 Ratio | 16.04 | % | 16.58 | % | 15.95 | % | ||||||||||
Tier 1 Risk-Based Capital Ratio | 16.04 | % | 16.58 | % | 15.95 | % | ||||||||||
Total Risk-Based Capital Ratio | 17.29 | % | 17.65 | % | 16.95 | % | ||||||||||
Book Value per Share | $ | 14.54 | $ | 14.30 | $ | 13.24 | ||||||||||
Asset Quality | ||||||||||||||||
Net Loan Charge-Offs (Recoveries) | $ | 0 | $ | 0 | $ | 0 | ||||||||||
Allowance for Loan Losses to Loans | 1.69 | % | 1.09 | % | 1.00 | % | ||||||||||
Nonperforming Assets to Total Assets | 1.71 | % | 0.74 | % | 0.05 | % | ||||||||||
SOURCE: U & I Financial Corp. (Washington)
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FAQ
What was U & I Financial Corp.'s (UNIF) quarterly net loss in the fourth quarter?
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What were the major financial challenges faced by UniBank in the fourth quarter?
What was the change in net income for U & I Financial Corp. (UNIF) from the previous year?
