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

Rhea-AI Summary

U & I Financial Corp. (OTCQX:UNIF) reported record third-quarter earnings of $3.0 million ($0.55 per share), a 29.3% increase from $2.3 million ($0.42 per share) in Q3 2021. Total assets rose by 26.0% to $551.5 million, while net loans increased 36.2% to $433.5 million, and total deposits grew 28.5% to $469.3 million. The return on average assets improved to 2.16%. However, CEO Peter Park cautioned that inflation and interest rate conditions may moderate loan demand and profitability in coming quarters.

Positive

• Record net income of $3.0 million, a 29.3% increase year-over-year.
• Total assets increased by 26.0% to $551.5 million.
• Net loans grew by 36.2% to $433.5 million.
• Total deposits rose 28.5% to $469.3 million.
• Return on average assets improved to 2.16%.

Negative

• Expectations of moderated loan demand and profitability due to inflation and interest rate challenges.

LYNNWOOD, WA / ACCESSWIRE / October 26, 2022 / U & I Financial Corp. (OTCQX:UNIF), the holding company for UniBank, today reported record quarterly earnings of $3.0 million or $0.55 per share in the third quarter, as compared to $2.3 million or $0.42 per share for the same quarter of 2021, increasing by $686 thousand or $0.13 per share, primarily from generating higher net interest income.

As of September 30, 2022, total assets reached $551.5 million, increasing by $113.9 million or 26.0% from the year earlier period of $437.6 million. Net loans ended at $433.5 million, increasing by $115.2 million or 36.2% from the year earlier period of $318.2 million. Finally, total deposits grew by $104.0 million or 28.5% to $469.3 million from the year earlier period of $365.2 million.

"We are pleased to announce another quarter of strong performance," said Peter Park, President and CEO. He added that, "UniBank has been one of the most profitable banks in Washington state in terms of ROA and had the highest ROA in the state in the previous quarter. However, due to the persistent inflationary conditions and unfavorable interest rate environment, we expect our loan demand and profitability to moderate over the next several quarters. Despite the uncertain economic outlook, however, we are committed to investing in our infrastructure so that we are able to continue to deliver solid returns over the long run."

2022 Third Quarter Financial Highlights

Total assets grew 26.0% to $551.5 million as compared to $437.6 million a year ago.

Net loans increased 36.2% to $433.5 million as compared to $318.2 million a year ago.

Total deposits grew 28.5% to $469.3 million as compared to $365.2 million a year ago.

Net income quarter-to-date grew 29.3% to $3.0 million as compared to $2.3 million a year ago.

Net income year-to-date grew 24.7% to $7.7 million as compared to $6.2 million a year ago.

Net interest margin for the year was 4.79% as compared to 4.40% a year ago.

Gain on sale of SBA/USDA loans for the year was $1.5 million as compared to $2.9 million a year ago.

Return on average equity for the year was 15.26% as compared to 13.41% a year ago.

Return on average assets for the year was 2.16% as compared to 2.07% a year ago.

The allowance for loan losses to loans was 1.05% as compared to 1.42% a year ago.

Nonperforming assets to total assets was 0.05% as compared to 0.07% a year ago.

Efficiency ratio (noninterest expense divided by revenue) for the year was 49.13% as compared to 53.33% 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.

CONTACT:
U & I Financial Corp.
Investor Relations
Simon Bai, 425-275-9704

SOURCE: U & I Financial Corp. (Washington)

View source version on accesswire.com:
https://www.accesswire.com/722293/U-I-Financial-Corp-Reports-Third-Quarter-2022-Financial-Results

FAQ

What were U & I Financial Corp.'s earnings for Q3 2022?

U & I Financial Corp. reported earnings of $3.0 million or $0.55 per share for Q3 2022.

How did total assets change for U & I Financial Corp. in Q3 2022?

Total assets increased by 26.0% to $551.5 million compared to the previous year.

What is the outlook for U & I Financial Corp.'s loan demand?

The company expects loan demand and profitability to moderate due to persistent inflation and unfavorable interest rates.

What was the return on assets for U & I Financial Corp. in 2022?

The return on average assets for U & I Financial Corp. was 2.16% for the year.

What are the deposit figures for U & I Financial Corp. in Q3 2022?

Total deposits grew by 28.5% to $469.3 million compared to Q3 2021.