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

Rhea-AI Summary

U & I Financial Corp. (OTCQX:UNIF) reported record quarterly earnings of $2.3 million or $0.42 per share for Q3 2021, a 48.9% increase from $1.6 million or $0.28 per share in Q3 2020. Total assets grew 11.4% to $437.6 million, with net loans at $318.2 million, up 13.4%. Total deposits reached $365.2 million, an 11.1% increase. Year-to-date net income rose 41.1% to $6.2 million. The company plans to continue investing to achieve $500 million in total assets soon.

Positive

• Record quarterly earnings of $2.3 million, a 48.9% increase year-over-year.
• Total assets increased by 11.4% to $437.6 million from $393.0 million.
• Net loans grew by 13.4% year-over-year, reaching $318.2 million.
• Total deposits increased by 11.1% to $365.2 million.
• Year-to-date net income rose by 41.1% to $6.2 million.

Negative

• Efficiency ratio increased to 53.33% from 51.82% year-over-year.

LYNNWOOD, WA / ACCESSWIRE / October 26, 2021 / U & I Financial Corp. (OTCQX:UNIF), the holding company for UniBank, today reported record quarterly earnings of $2.3 million or $0.42 per share in the third quarter, as compared to $1.6 million or $0.28 per share for the same quarter of 2020, increasing by $768 thousand or 48.9%, primarily from not having to recognize the provision of loan losses this quarter and from generating higher net interest income.

As of September 30, 2021, total assets reached a record, $437.6 million, increasing by $44.7 million or 11.4% from the year earlier period of $393.0 million. Net loans ended at a record $318.2 million, increasing by $37.5 million or 13.4% from the year earlier period of $280.7 million. Finally, total deposits grew by $36.6 million or 11.1% to a record, $365.2 million, from the year earlier period of $328.6 million.

As of September 30, 2021, the SBA PPP loans totaled $12.9 million. During the year, a total of $40.8 million PPP loans was forgiven, of which $6.2 million was during the third quarter.

"We are very proud of our employees for attaining another quarter of record performance despite the current economic and public health challenges," said Peter Park, President and CEO. He added that, "Our business model of serving the minority and other underserved business communities through government guaranteed loans has proven to be exceptionally favorable during these uncertain times. Net loans increased by 13.4% from the prior year, despite $40.8 million total SBA PPP loans forgiven this year. As we look forward to passing the $500 million total assets milestone in the near future, we will continue to invest in our people and infrastructure to deliver consistent returns for our shareholders."

2021 Third Quarter Financial Highlights

Total assets grew 11.4% to $437.6 million as compared to $393.0 million a year ago.

Net loans increased 13.4% to $318.2 million as compared to $280.7 million a year ago.

Total deposits grew 11.1% to $365.2 million as compared to $328.6 million a year ago.

Net income quarter-to-date grew 48.9% to $2.3 million as compared to $1.6 million one year ago.

Net income year-to-date grew 41.1% to $6.2 million as compared to $4.4 million one year ago.

Net interest margin for the year was 4.40% as compared to 4.30% one year ago.

Gain on sale of SBA/USDA loans for the year was $2.9 million as compared to $2.0 million a year ago.

Return on average equity for the year was 13.41% as compared to 11.04% a year ago.

Return on average assets for the year was 2.07% as compared to 1.61% a year ago.

The allowance for loan losses to loans, excluding PPP loans, was 1.48% as compared to 1.77% a year ago.

Nonperforming assets to total assets was 0.07% as compared to 0.20% a year ago.

Efficiency ratio (noninterest expense divided by revenue) for the year was 53.33% as compared to 51.82% 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)
	Sep-21			Jun-21			Sep-20			Sep-21			Sep-20
(Dollars in thousands except EPS)	QTD			QTD			QTD			YTD			YTD
Interest Income	$	4,639		$	4,334		$	4,316		$	12,909		$	12,811
Interest Expense		179			182			379			575			1,752
Net Interest Income		4,460			4,152			3,937			12,334			11,059
Provision for Loan Losses		-			-			800			-			1,500
Gain on Sale of SBA/USDA Loans		1,191			933			974			2,852			1,996
Loan Servicing Fees, Net of Amortization		139			198			163			483			498
Other Non-interest Income		252			218			109			727			412
Non-interest Income		1,582			1,349			1,246			4,062			2,906
Salaries & Benefits		2,290			1,925			1,627			6,240			4,820
Occupancy Expense		171			167			176			514			513
Other Expense		689			647			642			1,990			1,864
Non-interest Expense		3,150			2,739			2,445			8,744			7,197
Net Income before Income Taxes		2,892			2,762			1,938			7,652			5,268
Income Taxes		553			521			367			1,454			875
Net Income/(Loss)	$	2,339		$	2,241		$	1,571		$	6,198		$	4,393
Total Outstanding Shares (in thousands)		5,579			5,579			5,581			5,579			5,581
Basic Earnings per Share	$	0.42		$	0.41		$	0.28		$	1.12		$	0.80

Statement of Condition (Unaudited)
	Sep-21			Jun-21			Variance			Sep-20			Variance
(Dollars in thousands)	Qtr End			Qtr End			Prior Qtr			Qtr End			Prior Year
Cash and Due from Banks	$	25,092		$	41,671		$	(16,579)		$	16,089		$	9,003
Investments		57,041			57,603			(562)			58,490			(1,449)
Loans Held for Sale		13,946			20,294			(6,348)			18,296			(4,350)
Gross Loans		322,810			279,058			43,752			285,010			37,800
Allowance for Loan Losses		(4,577)			(4,568)			(9)			(4,304)			(273)
Net Loans		318,233			274,490			43,743			280,706			37,527
Fixed Assets		5,676			5,800			(124)			5,864			(188)
Other Assets		17,632			17,233			399			13,524			4,108
Total Assets	$	437,620		$	417,091		$	20,529		$	392,969		$	44,651
Checking	$	103,786		$	88,562		$	15,224		$	77,163		$	26,623
NOW		12,154			9,441			2,713			14,768			(2,614)
Money Market		137,030			123,436			13,594			117,795			19,235
Savings		16,130			12,915			3,215			10,998			5,132
Certificates of Deposit		96,107			113,438			(17,331)			107,919			(11,812)
Total Deposits		365,207			347,792			17,415			328,643			36,564
Borrowed Funds		5,000			5,000			-			6,000			(1,000)
Other Liabilities		2,400			1,548			852			1,790			610
Total Liabilities		372,607			354,340			18,267			336,433			36,174
Shareholders' Equity		65,013			62,751			2,262			56,536			8,477
Total Liabilities & Equity	$	437,620		$	417,091		$	20,529		$	392,969		$	44,651

Financial Ratios
		Sep-21		Jun-21		Sep-20		Sep-21		Sep-20
(Dollars in thousands except BVS)		QTD		QTD		QTD		YTD		YTD
Performance Ratios
Return on Average Assets		2.22%		2.29%		1.64%		2.07%		1.61%
Return on Average Equity		14.43%		14.65%		11.20%		13.41%		11.04%
Net Interest Margin		4.55%		4.55%		4.37%		4.40%		4.30%
Efficiency Ratio		53.36%		49.79%		47.17%		53.33%		51.82%
Capital
Tier 1 Leverage Ratio		15.21%		15.55%		14.45%
Common Equity Tier 1 Ratio		19.73%		20.83%		20.06%
Tier 1 Risk-Based Capital Ratio		19.73%		20.83%		20.06%
Total Risk-Based Capital Ratio		20.98%		22.08%		21.31%
Book Value per Share		$11.65		$11.25		$10.13
Asset Quality
Net Loan Charge-Offs (Recoveries)		($9)		$0		($9)
Allowance for Loan Losses to Loans		1.42%		1.64%		1.51%
Allowance Ratio, Excluding PPP Loans		1.48%		1.76%		1.77%
Nonperforming Assets to Total Assets		0.07%		0.15%		0.20%

U & I Financial Corp.
Investor Relations
Stephanie Yoon, 425-275-9727

SOURCE: U & I Financial Corp.

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FAQ

What were U & I Financial Corp.'s Q3 2021 earnings results?

U & I Financial Corp. reported Q3 2021 earnings of $2.3 million, or $0.42 per share, which is a 48.9% increase from the previous year.

How much did total assets grow for U & I Financial Corp. in Q3 2021?

Total assets grew by 11.4% to $437.6 million in Q3 2021 compared to $393.0 million a year ago.

What is the net loan growth for U & I Financial Corp. in Q3 2021?

Net loans increased by 13.4% to $318.2 million in Q3 2021 from $280.7 million in the same period last year.

What were the total deposits for U & I Financial Corp. in Q3 2021?

Total deposits reached $365.2 million in Q3 2021, marking an 11.1% increase from $328.6 million a year earlier.