U & I Financial Corp. Reports Fourth Quarter 2020 Financial Results

LYNNWOOD, Wash.–(BUSINESS WIRE)–Jan 28, 2021–

U & I Financial Corp. (OTCQX: UNIF), the holding company for UniBank, today reported record quarterly earnings of $1.8 million or $0.33 per share in the fourth quarter, as compared to $1.4 million or $0.26 per share for the same quarter of 2019. For the year, net income was an annual record of $6.2 million or $1.12 per share, increasing by $589 thousand or $0.10 per share from the same period last year, despite $1.4 million in higher provision for loan losses expense.

As of December 31, 2020, total assets ended at a record, $403.9 million, increasing by $56.4 million or 16.2% from the year earlier period of $347.5 million. Net loans reached $290.1 million, increasing by $51.0 million or 21.4% from the year earlier period of $239.0 million. Finally, total deposits grew by $47.9 million or 16.5% to a record, $337.6 million, from the year earlier period of $289.6 million.

“We had an exceptional fourth quarter and year, despite the uncertain economic and public health conditions. The Bank exceeded $400 million in total assets, and made other achievements during the year such as being the #1 SBA lender in our market area among community banks, and opening our first LPO office,” said Peter Park, President and CEO. He added, “Although the financial performance of the Bank and the industry, as a whole, have generally been positive, there is still tremendous uncertainty. However, we believe that we are well positioned to succeed in the long run, due to the solid leadership by our Board and management, and sound business model and strategies. We thank our customers and shareholders for trusting in us, and look forward to another productive year.”

2020 Fourth Quarter Financial Highlights

Total assets grew 16.2% to $403.9 million as compared to $347.5 million a year ago.

Net loans grew 21.4% to $290.1 million as compared to $239.0 million a year ago.

Loans held for sale increased 178.7% to $6.7 million as compared to $2.4 million a year ago.

Total deposits grew 16.5% to $337.6 million as compared to $289.6 million a year ago.

Net income year-to-date grew 10.5% to $6.2 million as compared to $5.6 million one year ago.

Net interest margin for the year was 4.22% as compared to 4.20% one year ago.

Gain on sale of SBA/USDA loans for the year was $3.4 million as compared to $2.8 million a year ago.

Return on average equity for the year was 11.45% as compared to 12.03% a year ago.

Return on average assets for the year was 1.68% as compared to 1.78% a year ago.

The allowance for loan losses to loans, excluding PPP loans, was 1.78% as compared to 1.14% a year ago.

Nonperforming assets to total assets was 0.19% as compared to 0.21% a year ago.

Efficiency ratio (noninterest expense divided by revenue) for the year was 52.22% as compared to 55.23% 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)
    Dec-20   Sep-20   Dec-19     Dec-20   Dec-19
(Dollars in thousands except EPS)     QTD   QTD   QTD     YTD   YTD
Interest Income    

$

3,961

 

 

$

4,316

 

 

$

3,988

 

   

$

16,772

 

 

$

16,291

 

Interest Expense    

 

292

 

 

 

379

 

 

 

961

 

   

 

2,044

 

 

 

3,783

 

Net Interest Income    

 

3,669

 

 

 

3,937

 

 

 

3,027

 

   

 

14,728

 

 

 

12,508

 

Provision for Loan Losses    

 

250

 

 

 

800

 

 

 

40

 

   

 

1,750

 

 

 

390

 

Gain on Sale of SBA/USDA Loans    

 

1,402

 

 

 

974

 

 

 

992

 

   

 

3,398

 

 

 

2,841

 

Gain on Sale of Securities    

 

 

 

 

 

 

 

 

   

 

78

 

 

 

151

 

Other Non-interest Income    

 

272

 

 

 

272

 

 

 

209

 

   

 

1,104

 

 

 

876

 

Non-interest Income    

 

1,674

 

 

 

1,246

 

 

 

1,201

 

   

 

4,580

 

 

 

3,868

 

Salaries & Benefits    

 

1,922

 

 

 

1,627

 

 

 

1,446

 

   

 

6,742

 

 

 

5,854

 

Occupancy Expense    

 

172

 

 

 

176

 

 

 

156

 

   

 

685

 

 

 

637

 

Other Expense    

 

751

 

 

 

642

 

 

 

762

 

   

 

2,615

 

 

 

2,514

 

Non-interest Expense    

 

2,845

 

 

 

2,445

 

 

 

2,364

 

   

 

10,042

 

 

 

9,005

 

Net Income before Income Taxes    

 

2,248

 

 

 

1,938

 

 

 

1,824

 

   

 

7,516

 

 

 

6,981

 

Income Taxes    

 

428

 

 

 

367

 

 

 

389

 

   

 

1,303

 

 

 

1,357

 

Net Income/(Loss)    

 

1,820

 

 

 

1,571

 

 

 

1,435

 

   

$

6,213

 

 

$

5,624

 

               
Total Outstanding Shares (in thousands)    

 

5,581

 

 

 

5,581

 

 

 

5,573

 

   

 

5,581

 

 

 

5,573

 

Basic Earnings per Share    

$

0.33

 

 

$

0.28

 

 

$

0.26

 

   

$

1.12

 

 

$

1.02

 

               
               
Statement of Condition (Unaudited)
    Dec-20   Sep-20   Variance     Dec-19   Variance
(Dollars in thousands)     Qtr End   Qtr End   Prior Qtr     Qtr End   Prior Year
               
Cash and Due from Banks    

$

24,936

 

 

$

16,089

 

 

$

8,847

 

   

$

38,754

 

 

($

13,818

)

Investments    

 

58,573

 

 

 

58,490

 

 

 

83

 

   

 

48,994

 

 

 

9,579

 

Loans Held for Sale    

 

6,689

 

 

 

18,296

 

 

 

(11,607

)

   

 

2,400

 

 

 

4,289

 

Gross Loans    

 

294,618

 

 

 

285,010

 

 

 

9,608

 

   

 

241,788

 

 

 

52,830

 

Allowance for Loan Losses    

 

(4,568

)

 

 

(4,304

)

 

 

(264

)

   

 

(2,775

)

 

 

(1,793

)

Net Loans    

 

290,050

 

 

 

280,706

 

 

 

9,344

 

   

 

239,013

 

 

 

51,037

 

Fixed Assets    

 

5,891

 

 

 

5,864

 

 

 

27

 

   

 

6,234

 

 

 

(343

)

Other Assets    

 

17,759

 

 

 

13,524

 

 

 

4,235

 

   

 

12,060

 

 

 

5,699

 

Total Assets    

$

403,898

 

 

$

392,969

 

 

$

10,929

 

   

$

347,455

 

 

$

56,443

 

               
Checking    

 

79,648

 

 

 

77,163

 

 

 

2,485

 

   

 

44,988

 

 

 

34,660

 

NOW    

 

8,837

 

 

 

14,768

 

 

 

(5,931

)

   

 

8,767

 

 

 

70

 

Money Market    

 

152,719

 

 

 

117,795

 

 

 

34,924

 

   

 

121,622

 

 

 

31,097

 

Savings    

 

11,015

 

 

 

10,998

 

 

 

17

 

   

 

9,059

 

 

 

1,956

 

Certificates of Deposit    

 

85,349

 

 

 

107,919

 

 

 

(22,570

)

   

 

105,203

 

 

 

(19,854

)

Total Deposits    

 

337,568

 

 

 

328,643

 

 

 

8,925

 

   

 

289,639

 

 

 

47,929

 

Borrowed Funds    

 

5,000

 

 

 

6,000

 

 

 

(1,000

)

   

 

5,000

 

 

 

 

Other Liabilities    

 

2,244

 

 

 

1,790

 

 

 

454

 

   

 

2,361

 

 

 

(117

)

Total Liabilities    

 

344,812

 

 

 

336,433

 

 

 

8,379

 

   

 

297,000

 

 

 

47,812

 

Shareholders’ Equity    

 

59,086

 

 

 

56,536

 

 

 

2,550

 

   

 

50,455

 

 

 

8,631

 

Total Liabilities & Equity    

$

403,898

 

 

$

392,969

 

 

$

10,929

 

   

$

347,455

 

 

$

56,443

 

               
               
Financial Ratios
    Dec-20   Sep-20   Dec-19     Dec-20   Dec-19
(Dollars in thousands except BVS)     QTD   QTD   QTD     YTD   YTD
Performance Ratios              
Return on Average Assets    

 

1.87

%

 

 

1.64

%

 

 

1.75

%

   

 

1.68

%

 

 

1.78

%

Return on Average Equity    

 

12.59

%

 

 

11.20

%

 

 

11.50

%

   

 

11.45

%

 

 

12.03

%

Net Interest Margin    

 

4.02

%

 

 

4.37

%

 

 

3.95

%

   

 

4.22

%

 

 

4.20

%

Efficiency Ratio    

 

53.25

%

 

 

47.17

%

 

 

55.91

%

   

 

52.22

%

 

 

55.23

%

               
Capital              
Tier 1 Leverage Ratio    

 

14.65

%

 

 

14.45

%

 

 

15.38

%

     
Common Equity Tier 1 Ratio    

 

19.79

%

 

 

20.06

%

 

 

18.27

%

     
Tier 1 Risk-Based Capital Ratio    

 

19.79

%

 

 

20.06

%

 

 

18.27

%

     
Total Risk-Based Capital Ratio    

 

21.04

%

 

 

21.31

%

 

 

19.28

%

     
Book Value per Share    

$

10.59

 

 

$

10.13

 

 

$

9.05

 

     
               
Asset Quality              
Net Loan Charge-Offs (Recoveries)    

($13

)

 

($9

)

 

($15

)

     
Allowance for Loan Losses to Loans    

 

1.55

%

 

 

1.51

%

 

 

1.14

%

     
Allowance Ratio, Excluding PPP Loans    

 

1.78

%

 

 

1.77

%

 

 

1.14

%

     
Nonperforming Assets to Total Assets    

 

0.19

%

 

 

0.20

%

 

 

0.21

%

     

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20210128005162/en/

CONTACT: U & I Financial Corp.

Investor Relations

Stephanie Yoon, 425-275-9727

KEYWORD: UNITED STATES NORTH AMERICA WASHINGTON

INDUSTRY KEYWORD: SMALL BUSINESS BANKING PROFESSIONAL SERVICES FINANCE

SOURCE: U & I Financial Corp.

Copyright Business Wire 2021.

PUB: 01/28/2021 04:00 PM/DISC: 01/28/2021 04:01 PM

http://www.businesswire.com/news/home/20210128005162/en

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