U & I Financial Corp. Reports Third Quarter 2023 Financial Results

Rhea-AI Summary

U & I Financial Corp. (OTCQX:UNIF) reported quarterly earnings of $2.4 million or $0.43 per share in Q3 2023, a decrease of $670 thousand or $0.12 per share compared to the same quarter in 2022. Total assets reached $612.2 million, increasing by $60.7 million or 11.0% from the previous year. Net loans increased by $43.4 million or 10.0% to $476.9 million, and total deposits grew by $52.9 million or 11.3% to $522.1 million.

LYNNWOOD, WA / ACCESSWIRE / October 31, 2023 / U & I Financial Corp. (OTCQX:UNIF), the holding company for UniBank, today reported quarterly earnings of $2.4 million or $0.43 per share in the third quarter, as compared to $3.0 million or $0.55 per share for the same quarter of 2022, decreasing by $670 thousand or $0.12 per share, primarily due to reduced Net Interest Income.

As of September 30, 2023, Total Assets reached $612.2 million, increasing by $60.7 million or 11.0% from the year earlier period of $551.5 million. Net Loans ended at $476.9 million, increasing by $43.4 million or 10.0% from the year earlier period of $433.5 million. Finally, Total Deposits grew by $52.9 million or 11.3% to $522.1 million from the year earlier period of $469.3 million.

"The third quarter was challenging for the Bank as we faced what many community banks have been experiencing, namely high interest rates, slowed loan demand and the deterioration of credit," said Peter Park, President and CEO. He added that, "Although we anticipate additional challenges in the foreseeable future, we believe that our strong capital position and sufficient liquidity will help us deliver solid returns to our shareholders in the long run."

2023 Third Quarter Financial Highlights

Total assets grew 11.0% to $612.2 million as compared to $551.5 million a year ago.

Net loans increased 10.0% to $476.9 million as compared to $433.5 million a year ago.

Total deposits grew 11.3% to $522.1 million as compared to $469.3 million a year ago.

Net income quarter-to-date decreased 22.1% to $2.4 million as compared to $3.0 million a year ago.

Net income year-to-date decreased 4.3% to $7.4 million as compared to $7.7 million a year ago.

Net interest margin for the year was 4.05% as compared to 4.79% a year ago.

Gain on sale of SBA/USDA loans for the year was $1.4 million as compared to $1.5 million a year ago.

Return on average equity for the year was 13.01% as compared to 15.26% a year ago.

Return on average assets for the year was 1.65% as compared to 2.16% a year ago.

The allowance for loan losses to loans was 1.09% as compared to 1.05% a year ago.

Nonperforming assets to total assets was 0.74% as compared to 0.05% a year ago.

Efficiency ratio (noninterest expense divided by revenue) for the year was 52.76% as compared to 49.13% 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)
		Sep-23				Jun-23				Sep-22				Sep-22				Sep-23
(Dollars in thousands except EPS)		QTD				QTD				QTD				YTD				YTD
Interest Income		$	9,616			$	9,955			$	7,017			$	28,346			$	17,496
Interest Expense			4,173				3,723				761				10,796				1,185
Net Interest Income			5,443				6,232				6,256				17,550				16,311
Provision for Loan Losses			158				-				-				158				-
Gain on Sale of SBA/USDA Loans			609				-				324				1,433				1,481
Loan Servicing Fees, Net of Amortization			164				172				182				541				371
Other Non-interest Income			176				329				180				678				525
Non-interest Income			949				501				686				2,652				2,377
Salaries & Benefits			1,962				2,395				2,036				6,991				5,975
Occupancy Expense			187				175				183				541				538
Other Expense			1,120				1,055				987				3,126				2,668
Non-interest Expense			3,269				3,625				3,206				10,658				9,181
Net Income before Income Taxes			2,965				3,108				3,736				9,386				9,507
Income Taxes			610				738				711				1,986				1,777
Net Income/(Loss)		$	2,355			$	2,370			$	3,025			$	7,400			$	7,730
Total Outstanding Shares (in thousands)			5,466				5,441				5,461				5,466				5,461
Basic Earnings per Share		$	0.43			$	0.44			$	0.55			$	1.36			$	1.40
Statement of Condition (Unaudited)
		Sep-23				Jun-23				Sep-22				Variance				Variance Prior
(Dollars in thousands)		Qtr End				Qtr End				Qtr End				Prior Qtr				Year
Cash and Due from Banks		$	58,923			$	48,684			$	36,451			$	10,239			$	22,472
Investments			48,841				49,714				49,855				(873	)			(1,014	)
Loans Held for Sale			-				-				5,078				-				(5,078	)
Gross Loans			482,132				487,126				438,055				(4,994	)			44,077
Allowance for Loan Losses			(5,234	)			(5,076	)			(4,580	)			(158	)			(654	)
Net Loans			476,898				482,050				433,475				(5,152	)			43,423
Fixed Assets			6,577				6,702				7,129				(125	)			(552	)
Other Assets			20,978				20,089				19,530				889				1,448
Total Assets		$	612,217			$	607,239			$	551,518			$	4,978			$	60,699
Checking		$	105,770			$	107,476			$	123,433			$	(1,706	)		$	(17,663	)
NOW			14,588				13,905				13,767				683				821
Money Market			197,296				213,825				132,774				(16,529	)			64,522
Savings			9,050				9,744				15,227				(694	)			(6,177	)
Certificates of Deposit			195,429				171,986				184,054				23,443				11,375
Total Deposits			522,133				516,936				469,255				5,197				52,878
Borrowed Funds			8,000				10,000				10,000				(2,000	)			(2,000	)
Other Liabilities			3,916				3,192				3,836				724				80
Total Liabilities			534,049				530,128				483,091				3,921				50,958
Shareholders' Equity			78,168				77,111				68,427				1,057				9,741
Total Liabilities & Equity		$	612,217			$	607,239			$	551,518			$	4,978			$	60,699
Financial Ratios
		Sep-23				Jun-23				Sep-22				Sep-23				Sep-22
(Dollars in thousands except BVS)		QTD				QTD				QTD				YTD				YTD
Performance Ratios
Return on Average Assets			1.54	%			1.59	%			2.27	%			1.65	%			2.16	%
Return on Average Equity			11.92	%			12.48	%			17.34	%			13.01	%			15.26	%
Net Interest Margin			3.65	%			4.32	%			4.85	%			4.05	%			4.79	%
Efficiency Ratio			51.14	%			53.85	%			46.18	%			52.76	%			49.13	%
Capital
Tier 1 Leverage Ratio			13.29	%			13.11	%			13.34	%
Common Equity Tier 1 Ratio			16.58	%			16.31	%			16.34	%
Tier 1 Risk-Based Capital Ratio			16.58	%			16.31	%			16.34	%
Total Risk-Based Capital Ratio			17.65	%			17.36	%			17.40	%
Book Value per Share		$	14.30			$	14.17			$	12.53
Asset Quality
Net Loan Charge-Offs (Recoveries)		$	0			$	(942	)		$	0
Allowance for Loan Losses to Loans			1.09	%			1.04	%			1.05	%
Nonperforming Assets to Total Assets			0.74	%			0.00	%			0.05	%

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

SOURCE: U & I Financial Corp. (Washington)

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FAQ

What are the quarterly earnings of U & I Financial Corp. in Q3 2023?

U & I Financial Corp. reported quarterly earnings of $2.4 million or $0.43 per share in Q3 2023.

How did the earnings compare to the same quarter in 2022?

The earnings decreased by $670 thousand or $0.12 per share compared to the same quarter in 2022.

What is the total asset value of U & I Financial Corp. as of September 30, 2023?

The total assets of U & I Financial Corp. reached $612.2 million.

How much did net loans increase by?

Net loans increased by $43.4 million or 10.0% to $476.9 million.

What is the total deposit amount for U & I Financial Corp.?

The total deposits grew by $52.9 million or 11.3% to $522.1 million.