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U & I Financial Corp. Reports 2019 Financial Results

January 27, 2020 GMT

LYNNWOOD, Wash.--(BUSINESS WIRE)--Jan 27, 2020--

U & I Financial Corp. (OTCQX: UNIF), the holding company for UniBank, today reported record annual net income of $5.6 million or $1.02 per share in 2019, as compared to $4.5 million or $0.82 per share for the year earlier period. This represents an increase of $1.1 million or 24.8% from the prior year. For the quarter, net income was $1.4 million. The year to date return on average assets increased to 1.78% from 1.62% for the year earlier period.

As of December 31, 2019, the Company also had record levels of assets, loans and deposits. Total assets increased by $42.6 million or 14.0% to $347.5 million from the year earlier period of $304.9 million. Net loans increased by $32.9 million or 15.8% to $241.4 million from the year earlier period of $208.5 million. Finally, total deposits grew by $40.9 million or 16.4% to $289.6 million from the year earlier period of $248.7 million. The vast majority of this increase was from customer deposits.

“We are very pleased with the financial results and the continued record earnings and growth. We are proud to be one of the top SBA loan producing banks, based in Washington state. In the fourth quarter alone we sold a total of $11.5 million in SBA guarantees for a total gain of $992 thousand. Despite the challenging economic and interest rate environments, we believe that we are well positioned to continue delivering excellent results to our shareholders,” said Peter Park, President and CEO of UniBank.

2019 Financial Highlights

Total assets grew 14.0% to $347.5 million as compared to $304.9 million a year ago.

Total loans, net of reserve, grew 15.8% to $241.4 million as compared to $208.5 million a year ago.

Total deposits grew 16.4% to $289.6 million as compared to $248.7 million a year ago.

Net income year to date grew 24.8% to $5.6 million as compared to $4.5 million one year ago.

Net income for the quarter grew 43.5% to $1.4 million as compared to $1.0 million one year ago.

Net interest income for the year grew 12.4% to $12.5 million as compared to $11.1 million one year ago.

Net interest margin for the year was 4.20% as compared to 4.30% one year ago.

Gain on sale of SBA loans was $2.8 million as compared to $1.6 million a year ago.

Return on average equity for the year was 12.03% as compared to 11.04% a year ago.

Return on average assets for the year was 1.78% as compared to 1.62% a year ago.

Nonperforming assets to total assets was 0.21% as compared to 0.24% a year ago.

Efficiency ratio (noninterest expense divided by revenue) for the year was 55.23% as compared to 57.02% 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; 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 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-19

 

Sep-19

 

Dec-18

 

Dec-19

 

Dec-18

(Dollars in thousands except EPS)

QTD

 

QTD

 

QTD

 

YTD

 

YTD

Interest Income

$3,988

$4,485

$3,718

$16,291

$13,585

Interest Expense

961

981

711

3,783

2,456

Net Interest Income

3,027

3,504

3,007

12,508

11,129

Provision for Loan and Lease Losses

40

200

-

390

294

Gain on Sale of SBA/USDA Loans

992

593

101

2,841

1,639

Gain on Sale of Securities

-

-

-

151

-

Other Non-interest Income

209

245

165

877

784

Non-interest Income

1,201

838

266

3,869

2,423

Salaries & Benefits

1,446

1,518

1,323

5,854

4,871

Occupancy Expense

156

160

159

637

642

Other Expense

762

569

548

2,515

2,214

Non-interest Expense

2,364

2,247

2,030

9,006

7,727

Net Income before Income Taxes

1,824

1,895

1,243

6,981

5,531

Income Taxes

389

377

243

1,357

1,024

Net Income/(Loss)

1,435

1,518

1,000

$5,624

$4,507

 
Total Outstanding Shares (in thousands)

5,573

5,573

5,495

5,573

5,495

Basic Earnings per Share

$0.26

$0.28

$0.18

$1.02

$0.82

Statement of Condition (Unaudited)
Dec-19Sep-19VarianceDec-18Variance
(Dollars in thousands)Qtr EndQtr EndPrior QtrQtr EndPrior Year
 
Cash and Due from Banks

$38,754

$41,478

($2,724)

$31,382

$7,372

Investments

48,994

46,803

2,191

47,355

1,639

Gross Loans

244,188

233,286

10,902

210,811

33,377

Reserve for Loan Losses

2,775

2,720

55

2,310

465

Net Loans

241,413

230,566

10,847

208,501

32,912

Fixed Assets

6,234

6,364

(130)

5,778

456

Foreclosed Assets

-

-

-

100

(100)

Other Assets

12,060

11,979

81

11,769

291

Total Assets

$347,455

$337,190

$10,265

$304,885

$42,570

 
Checking

44,988

47,782

(2,794)

38,325

6,663

NOW

8,767

5,632

3,135

6,610

2,157

Money Market

121,622

114,701

6,921

94,082

27,540

Savings

9,059

8,028

1,031

8,274

785

Certificates of Deposit

105,203

100,264

4,939

101,447

3,756

Total Deposits

289,639

276,407

13,232

248,738

40,901

Borrowed Funds

5,000

10,000

(5,000)

12,000

(7,000)

Other Liabilities

2,361

1,919

442

1,090

1,271

Total Liabilities

297,000

288,326

8,674

261,828

35,172

Shareholders' Equity

50,455

48,864

1,591

43,057

7,398

Total Liabilities & Equity

$347,455

$337,190

$10,265

$304,885

$42,570

Financial Ratios
Dec-19Sep-19Dec-18Dec-19Dec-18
(Dollars in thousands except BVS)QTDQTDQTDYTDYTD
Performance Ratios
Return on Average Assets

1.75%

1.86%

1.41%

1.78%

1.62%

Return on Average Equity

11.50%

12.53%

9.42%

12.03%

11.04%

Net Interest Margin

3.95%

4.56%

4.59%

4.20%

4.30%

Efficiency Ratio

55.91%

51.75%

66.19%

55.23%

57.02%

 
Capital
Tier 1 Leverage Ratio

15.38%

14.93%

15.47%

Common Equity Tier 1 Ratio

18.27%

18.39%

18.26%

Tier 1 Risk-Based Capital Ratio

18.27%

18.39%

18.26%

Total Risk-Based Capital Ratio

19.28%

19.43%

19.23%

Book Value per Share

$9.05

$8.77

$7.72

 
Asset Quality
Net Loan Charge-Offs (Recoveries)

($15)

($27)

($11)

Allowance for Loan Losses to Loans

1.14%

1.17%

1.10%

Nonperforming Assets to Total Assets

0.21%

0.12%

0.24%

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20200127005094/en/

CONTACT: U & I Financial Corp.

Investor Relations

Stephanie Yoon, 425-275-9727

KEYWORD: UNITED STATES NORTH AMERICA WASHINGTON

INDUSTRY KEYWORD: BANKING PROFESSIONAL SERVICES FINANCE

SOURCE: U & I Financial Corp.

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PUB: 01/27/2020 08:00 AM/DISC: 01/27/2020 08:01 AM

http://www.businesswire.com/news/home/20200127005094/en