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

Rhea-AI Summary

U & I Financial Corp. (OTCQX:UNIF) reported record earnings of $2.6 million ($0.48 per share) for Q2 2022, up from $2.2 million ($0.41) a year prior. Total assets rose by 25.4% to $522.9 million, while net loans surged 53.6% to $421.7 million. Deposits increased by 22.9% to $427.5 million. Despite robust growth, the CEO cautioned about uncertainty in future growth due to inflation and recession risks but emphasized a commitment to expanding their business bank services nationwide.

Positive

• Record quarterly earnings of $2.6 million, up 17.6% year-over-year.
• Total assets increased by 25.4% to $522.9 million.
• Net loans grew by 53.6% to $421.7 million.
• Total deposits rose by 22.9% to $427.5 million.
• Net interest margin improved to 4.73% from 4.32% a year ago.

Negative

• Uncertainty in future growth due to high inflation and recession risks.
• Gain on sale of SBA/USDA loans decreased to $1.2 million from $1.7 million a year ago.

LYNNWOOD, WA / ACCESSWIRE / July 21, 2022 / U & I Financial Corp. (OTCQX:UNIF), the holding company for UniBank, today reported record quarterly earnings of $2.6 million or $0.48 per share in the second quarter, as compared to $2.2 million or $0.41 per share for the same quarter of 2021, increasing by $394 thousand or $0.06 per share, primarily from generating higher net interest income.

As of June 30, 2022, total assets reached $522.9 million, increasing by $105.8 million or 25.4% from the year earlier period of $417.1 million. Net loans ended at $421.7 million, increasing by $147.2 million or 53.6% from the year earlier period of $274.5 million. Finally, total deposits grew by $79.8 million or 22.9% to $427.5 million from the year earlier period of $347.8 million.

"We are pleased to announce that we have surpassed the $500 million milestone," said Peter Park, President and CEO. He added that, "we have generated high quality loans while diversifying out of our traditional Commercial Real Estate concentration by producing a significant volume of Commercial & Industrial and Residential loans. Due to the high inflationary environment and the risk of recession, it is uncertain whether we will continue to grow at this pace in the near term. However, in accordance with our new vision, we will strive to be America's premier business bank, providing customized financing solutions to customers across the United States, primarily using government guaranteed loan programs."

2022 Second Quarter Financial Highlights

Total assets grew 25.4% to $522.9 million as compared to $417.1 million a year ago.

Net loans increased 53.6% to $421.7 million as compared to $274.5 million a year ago.

Total deposits grew 22.9% to $427.5 million as compared to $347.8 million a year ago.

Net income quarter-to-date grew 17.6% to $2.6 million as compared to $2.2 million a year ago.

Net income year-to-date grew 21.9% to $4.7 million as compared to $3.9 million a year ago.

Net interest margin for the year was 4.73% as compared to 4.32% a year ago.

Gain on sale of SBA/USDA loans for the year was $1.2 million as compared to $1.7 million a year ago.

Return on average equity for the year was 14.17% as compared to 12.86% a year ago.

Return on average assets for the year was 2.10% as compared to 1.98% a year ago.

The allowance for loan losses to loans was 1.07% as compared to 1.64% a year ago.

Nonperforming assets to total assets was 0.05% as compared to 0.15% a year ago.

Efficiency ratio (noninterest expense divided by revenue) for the year was 50.87% as compared to 54.03% 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)
		Jun-22				Mar-22				Jun-21				Jun-22				Jun-21
(Dollars in thousands except EPS)		QTD				QTD				QTD				YTD				YTD
Interest Income		$	5,601			$	4,878			$	4,334			$	10,479			$	8,270
Interest Expense			257				167				182				424				396
Net Interest Income			5,344				4,711				4,152				10,055				7,874
Provision for Loan Losses			-				-				-				-				-
Gain on Sale of SBA/USDA Loans			737				420				933				1,157				1,661
Loan Servicing Fees, Net of Amortization			80				109				198				189				344
Other Non-interest Income			174				171				218				345				475
Non-interest Income			991				700				1,349				1,691				2,480
Salaries & Benefits			2,018				1,921				1,925				3,939				3,950
Occupancy Expense			181				174				167				355				343
Other Expense			884				797				647				1,681				1,301
Non-interest Expense			3,083				2,892				2,739				5,975				5,594
Net Income before Income Taxes			3,252				2,519				2,762				5,771				4,760
Income Taxes			617				449				521				1,066				901
Net Income/(Loss)		$	2,635			$	2,070			$	2,241			$	4,705			$	3,859
Total Outstanding Shares (in thousands)			5,505				5,527				5,579				5,505				5,579
Basic Earnings per Share		$	0.48			$	0.37			$	0.41			$	0.85			$	0.70
Statement of Condition (Unaudited)
		Jun-22				Mar-22				Jun-21				Variance				Variance
(Dollars in thousands)		Qtr End				Qtr End				Qtr End				Prior Qtr				Prior Year
Cash and Due from Banks		$	18,620			$	41,072			$	41,671			$	(22,452)			$	(23,051)
Investments			51,927				53,349				57,603				(1,422)				(5,676)
Loans Held for Sale			4,703				6,813				20,294				(2,110)				(15,591)
Gross Loans			426,316				356,890				279,058				69,426				147,258
Allowance for Loan Losses			(4,580)				(4,580)				(4,568)				-				(12)
Net Loans			421,736				352,310				274,490				69,426				147,246
Fixed Assets			6,897				7,043				5,800				(146)				1,097
Other Assets			19,028				18,478				17,233				550				1,795
Total Assets		$	522,911			$	479,065			$	417,091			$	43,846			$	105,820
Checking		$	114,365			$	107,618			$	88,562			$	6,747			$	25,803
NOW			13,794				19,343				9,441				(5,549)				4,353
Money Market			130,024				180,620				123,436				(50,596)				6,588
Savings			17,852				16,835				12,915				1,017				4,937
Certificates of Deposit			151,513				75,007				113,438				76,506				38,075
Total Deposits			427,548				399,423				347,792				28,125				79,756
Borrowed Funds			25,000				10,000				5,000				15,000				20,000
Other Liabilities			3,124				2,972				1,548				152				1,576
Total Liabilities			455,672				412,395				354,340				43,277				101,332
Shareholders' Equity			67,239				66,670				62,751				569				4,488
Total Liabilities & Equity		$	522,911			$	479,065			$	417,091			$	43,846			$	105,820
Financial Ratios
		Jun-22				Mar-22				Jun-21				June-22				Jun-21
(Dollars in thousands except BVS)		QTD				QTD				QTD				YTD				YTD
Performance Ratios
Return on Average Assets			2.25	%			1.94	%			2.29	%			2.10	%			1.98	%
Return on Average Equity			15.84	%			12.50	%			14.65	%			14.17	%			12.86	%
Net Interest Margin			4.79	%			4.66	%			4.55	%			4.73	%			4.32	%
Efficiency Ratio			48.67	%			53.45	%			49.79	%			50.87	%			54.03	%
Capital
Tier 1 Leverage Ratio			14.49	%			15.40	%			15.55	%
Common Equity Tier 1 Ratio			16.25	%			18.91	%			20.83	%
Tier 1 Risk-Based Capital Ratio			16.25	%			18.91	%			20.83	%
Total Risk-Based Capital Ratio			17.33	%			20.17	%			22.08	%
Book Value per Share		$	12.21			$	12.06			$	11.25
Asset Quality
Net Loan Charge-Offs (Recoveries)		$	0			$	(5)			$	0
Allowance for Loan Losses to Loans			1.07	%			1.28	%			1.64	%
Nonperforming Assets to Total Assets			0.05	%			0.06	%			0.15	%

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/709210/U-I-Financial-Corp-Reports-Second-Quarter-2022-Financial-Results

FAQ

What were U & I Financial Corp.'s earnings for Q2 2022?

U & I Financial Corp. reported earnings of $2.6 million, or $0.48 per share, for Q2 2022.

How much did total assets increase for U & I Financial Corp.?

Total assets increased by 25.4% to $522.9 million compared to the same quarter last year.

What is the current net loan figure for U & I Financial Corp.?

As of June 30, 2022, net loans totaled $421.7 million, a 53.6% increase from the previous year.

What are the risks mentioned by U & I Financial Corp.'s CEO?

The CEO mentioned uncertainties in future growth due to high inflationary pressures and recession risks.