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

LYNNWOOD, WA / ACCESSWIRE / April 26, 2022 / U & I Financial Corp. (OTCQX:UNIF), the holding company for UniBank, today reported record quarterly earnings of $2.1 million or $0.37 per share in the first quarter, as compared to $1.6 million or $0.29 per share for the same quarter of 2021, increasing by $452 thousand or $0.08 per share, primarily from generating higher net interest income.

As of March 31, 2022, total assets reached a record, $479.1 million, increasing by $67.2 million or 16.3% from the year earlier period of $411.9 million. Net loans ended at a record $352.3 million, increasing by $56.3 million or 19.0% from the year earlier period of $296.1 million. Finally, total deposits grew by $57.1 million or 16.7% to a record, $399.4 million, from the year earlier period of $342.3 million.

During the first quarter, several loans that had been designated as Loans Held for Sale as of December 31, 2021, were reclassified to the Gross Loan portfolio at the lower-of-cost-or-market per U.S. GAAP. As of March 31, 2022, these loans totaled $15.8 million. There were no losses recognized from the reclassifications.

"We had excellent performance to start the year," said Peter Park, President and CEO. He added that, "In appreciation of our shareholders, the board issued a cash dividend in April in addition to the Stock Repurchase Program that started last December. Going forward, I expect that the cash dividends will continue on a semi-annual basis." He further added that, "Although the inflationary pressures and the threat of recession may have dampened market sentiments, I strongly believe that our business model and continued investments in our infrastructure will deliver long term value to our shareholders."

2022 First Quarter Financial Highlights

Total assets grew 16.3% to $479.1 million as compared to $411.9 million a year ago.

Net loans increased 19.0% to $352.3 million as compared to $296.1 million a year ago.

Total deposits grew 16.7% to $399.4 million as compared to $342.3 million a year ago.

Net income grew 27.9% to $2.1 million as compared to $1.6 million a year ago.

Net interest margin was 4.66% as compared to 4.09% a year ago.

Gain on sale of SBA/USDA loans was $420 thousand as compared to $728 thousand a year ago.

Return on average equity was 12.50% as compared to 11.00% a year ago.

Return on average assets was 1.94% as compared to 1.67% a year ago.

The allowance for loan losses to loans was 1.28% as compared to 1.52% a year ago.

Nonperforming assets to total assets was 0.06% as compared to 0.16% a year ago.

Efficiency ratio (noninterest expense divided by revenue) was 53.45% as compared to 58.83% 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 with a particular emphasis on Asian American communities as well as various niche markets. 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)

Mar-22 Dec-21 Mar-21 Mar-21 Mar-21
(Dollars in thousands except EPS)
QTD QTD QTD $ Var % Var
Interest Income
$4,878 $4,955 $3,936 $942 23.9%
Interest Expense
167 172 214 (47) (22.0%)
Net Interest Income
4,711 4,783 3,722 989 26.6%
Provision for Loan Losses
- - - - -
Gain on Sale of SBA/USDA Loans
420 804 728 (308) (42.3%)
Loan Servicing Fees, Net of Amortization
109 151 147 (38) (25.9%)
Other Non-interest Income
171 137 256 (85) (33.2%)
Non-interest Income
700 1,092 1,131 (431) (38.1%)
Salaries & Benefits
1,921 2,025 2,025 (104) (5.1%)
Occupancy Expense
174 172 176 (2) (1.1%)
Other Expense
797 834 654 143 21.9%
Non-interest Expense
2,892 3,031 2,855 37 1.3%
Net Income before Income Taxes
2,519 2,844 1,998 521 26.1%
Income Taxes
449 540 380 69 18.2%
Net Income/(Loss)
$2,070 $2,304 $1,618 $452 27.9%
Total Outstanding Shares (in thousands)
5,527 5,562 5,579 (52)
Basic Earnings per Share
$0.37 $0.41 $0.29 $0.08

Statement of Condition (Unaudited)

Mar-22 Dec-21 Mar-21 Mar-21 Mar-21
(Dollars in thousands)
Qtr End Qtr End Qtr End $ Var % Var










Cash and Due from Banks
$41,072 $31,096 $23,332 $17,740 76.0%
Investments
53,349 56,824 57,556 (4,207) -7.3%
Loans Held for Sale
6,813 20,783 11,324 (4,511) -39.8%
Gross Loans
356,890 326,340 300,621 56,269 18.7%
Allowance for Loan Losses
(4,580) (4,575) (4,568) (12) 0.3%
Net Loans
352,310 321,765 296,053 56,257 19.0%
Fixed Assets
7,043 7,190 5,785 1,258 21.7%
Other Assets
18,478 18,025 17,813 665 3.7%
Total Assets
$479,065 $455,683 $411,863 $67,202 16.3%
Checking
$107,618 $98,487 $76,148 $31,470 41.3%
NOW
19,343 11,546 9,858 9,485 96.2%
Money Market
180,620 171,066 122,204 58,416 47.8%
Savings
16,835 16,348 12,197 4,638 38.0%
Certificates of Deposit
75,007 76,933 121,915 (46,908) -38.5%
Total Deposits
399,423 374,380 342,322 57,101 16.7%
Borrowed Funds
10,000 10,000 8,000 2,000 25.0%
Other Liabilities
2,972 4,185 1,471 1,501 102.0%
Total Liabilities
412,395 388,565 351,793 60,602 17.2%
Shareholders' Equity
66,670 67,118 60,070 6,600 11.0%
Total Liabilities & Equity
$479,065 $455,683 $411,863 $67,202 16.3%

Financial Ratios

Mar-22 Dec-21 Mar-21
(Dollars in thousands except BVS)
QTD QTD QTD
Performance Ratios
Return on Average Assets
1.94% 2.15% 1.67%
Return on Average Equity
12.50% 13.79% 11.00%
Net Interest Margin
4.66% 4.79% 4.09%
Efficiency Ratio
53.45% 52.95% 58.83%
Capital
Tier 1 Leverage Ratio
15.40% 15.44% 14.89%
Common Equity Tier 1 Ratio
18.91% 19.61% 20.41%
Tier 1 Risk-Based Capital Ratio
18.91% 19.61% 20.41%
Total Risk-Based Capital Ratio
20.17% 20.86% 21.67%
Book Value per Share
$12.06 $12.07 $10.77
Asset Quality
Net Loan Charge-Offs (Recoveries)
$(5) $(14) $0
Allowance for Loan Losses to Loans
1.28% 1.40% 1.52%
Nonperforming Assets to Total Assets
0.06% 0.06% 0.16%

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

SOURCE: U & I Financial Corp. (Washington)



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