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

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LYNNWOOD, WA / ACCESSWIRE / January 26, 2023 / U & I Financial Corp. (OTCQX:UNIF), the holding company for UniBank, today reported record quarterly earnings of $3.4 million or $0.62 per share in the fourth quarter, as compared to $2.3 million or $0.41 per share for the same quarter of 2021, increasing by $1.1 million or $0.21 per share, primarily from generating higher net interest income.

As of December 31, 2022, total assets reached $586.8 million, increasing by $131.1 million or 28.8% from the year earlier period of $455.7 million. Net loans ended at $454.4 million, increasing by $132.7 million or 41.2% from the year earlier period of $321.8 million. Finally, total deposits grew by $113.9 million or 30.4% to $488.3 million from the year earlier period of $374.4 million.

“We are pleased to announce very strong performances for the quarter and year,” said Peter Park, President and CEO. He added that, “As mentioned previously, the outlook for 2023 remains uncertain due to the persistent inflationary pressures and the risk of recession ahead of us. However, we believe that we are prepared to weather the storm due to our conservative underwriting and sufficient capital. In fact, we will continue to invest in our infrastructure during this period so that we are well positioned to resume our growth when the economy improves.”

2022 Fourth Quarter Financial Highlights

Total assets grew 28.8% to $586.8 million as compared to $455.7 million a year ago.

Net loans increased 41.2% to $454.4 million as compared to $321.8 million a year ago.

Total deposits grew 30.4% to $488.3 million as compared to $374.4 million a year ago.

Net income quarter-to-date grew 47.5% to $3.4 million as compared to $2.3 million a year ago.

Net income year-to-date grew 30.9% to $11.1 million as compared to $8.5 million a year ago.

Net interest margin for the year was 4.79% as compared to 4.50% a year ago.

Gain on sale of SBA/USDA loans for the year was $2.5 million as compared to $3.7 million a year ago.

Return on average equity for the year was 16.29% as compared to 13.51% a year ago.

Return on average assets for the year was 2.22% as compared to 2.09% a year ago.

The allowance for loan losses to loans was 1.00% as compared to 1.40% a year ago.

Nonperforming assets to total assets was 0.05% as compared to 0.06% a year ago.

Efficiency ratio (noninterest expense divided by revenue) for the year was 48.04% as compared to 52.87% 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)
	Dec-22			Sep-22			Dec-21			Dec-22			Dec-21
(Dollars in thousands except EPS)	QTD			QTD			QTD			YTD			YTD
Interest Income	$	8,418		$	7,017		$	4,955		$	25,914		$	17,864
Interest Expense		1,801			761			172			2,986			747
Net Interest Income		6,617			6,256			4,783			22,928			17,117
Provision for Loan Losses		–			–			–			–			–
Gain on Sale of SBA/USDA Loans		1,031			324			804			2,512			3,656
Loan Servicing Fees, Net of Amortization		123			182			151			494			634
Other Non-interest Income		162			180			137			687			864
Non-interest Income		1,316			686			1,092			3,693			5,154
Salaries & Benefits		2,341			2,036			2,025			8,316			8,265
Occupancy Expense		188			183			172			726			686
Other Expense		1,078			987			834			3,746			2,824
Non-interest Expense		3,607			3,206			3,031			12,788			11,775
Net Income before Income Taxes		4,326			3,736			2,844			13,833			10,496
Income Taxes		927			711			540			2,704			1,994
Net Income/(Loss)	$	3,399		$	3,025		$	2,304		$	11,129		$	8,502

Total Outstanding Shares (in thousands)		5,441			5,461			5,562			5,441			5,562
Basic Earnings per Share	$	0.62		$	0.55		$	0.41		$	2.03		$	1.53

Statement of Condition (Unaudited)
	Dec-22			Sep-22			Dec-21			Variance			Variance
(Dollars in thousands)	Qtr End			Qtr End			Qtr End			Prior Qtr			Prior Year

Cash and Due from Banks	$	42,003		$	36,451		$	31,096		$	5,552		$	10,907
Investments		51,062			49,855			56,824			1,207			(5,762	)
Loans Held for Sale		12,527			5,078			20,783			7,449			(8,256	)
Gross Loans		459,021			438,055			326,340			20,966			132,681
Allowance for Loan Losses		(4,580	)		(4,580	)		(4,575	)		–			(5	)
Net Loans		454,441			433,475			321,765			20,966			132,676
Fixed Assets		6,983			7,129			7,190			(146	)		(207	)
Other Assets		19,796			19,530			18,025			266			1,771
Total Assets	$	586,812		$	551,518		$	455,683		$	35,294		$	131,129

Checking	$	117,491		$	123,433		$	98,487		$	(5,942	)	$	19,004
NOW		13,969			13,767			11,546			202			2,423
Money Market		199,303			132,774			171,066			66,529			28,237
Savings		14,042			15,227			16,348			(1,185	)		(2,306	)
Certificates of Deposit		143,449			184,054			76,933			(40,605	)		66,516
Total Deposits		488,254			469,255			374,380			18,999			113,874
Borrowed Funds		22,000			10,000			10,000			12,000			12,000
Other Liabilities		4,453			3,836			4,185			617			268
Total Liabilities		514,707			483,091			388,565			31,616			126,142
Shareholders’ Equity		72,105			68,427			67,118			3,678			4,987
Total Liabilities & Equity	$	586,812		$	551,518		$	455,683		$	35,294		$	131,129


Financial Ratios
	Dec-22			Sep-22			Dec-21			Dec-22			Dec-21
(Dollars in thousands except BVS)	QTD			QTD			QTD			YTD			YTD
Performance Ratios
Return on Average Assets		2.37	%		2.27	%		2.15	%		2.22	%		2.09	%
Return on Average Equity		19.26	%		17.34	%		13.79	%		16.29	%		13.51	%
Net Interest Margin		4.82	%		4.85	%		4.79	%		4.79	%		4.50	%
Efficiency Ratio		45.47	%		46.18	%		52.95	%		48.04	%		52.87	%

Capital
Tier 1 Leverage Ratio		12.86	%		13.34	%		15.44	%
Common Equity Tier 1 Ratio		15.95	%		16.34	%		19.61	%
Tier 1 Risk-Based Capital Ratio		15.95	%		16.34	%		19.61	%
Total Risk-Based Capital Ratio		16.95	%		17.40	%		20.86	%
Book Value per Share	$	13.24		$	12.53		$	12.07

Asset Quality
Net Loan Charge-Offs (Recoveries)	$	0		$	0		$	(14	)
Allowance for Loan Losses to Loans		1.00	%		1.05	%		1.40	%
Nonperforming Assets to Total Assets		0.05	%		0.05	%		0.06	%