U & I Financial Corp. Reports Second Quarter 2019 Financial Results

Net Income Increases 24% and Continues Record Growth

LYNNWOOD, Wash.--()--U & I Financial Corp. (OTCQX: UNIF), the holding company for UniBank, today reported second quarter year to date net income of $2.7 million or $0.49 per share, as compared to $2.2 million or $0.39 per share for the same period in 2018. This represents an increase of $520 thousand or 24%. The year to date return on average assets increased to 1.75% from 1.58% for the year earlier period.

As of June 30, 2019 total assets was at a record level at $323.2 million, increasing by $34.6 million or 12% from the year earlier period of $288.5 million. Net loans also ended at a record level at $217.6 million, increasing by $15.5 million or 8% from the year earlier period of $202.1 million. Finally, total deposits was a record at $264.6 million, increasing $27.7 million or 12% from the year earlier period of $236.9 million.

“We are very pleased with the excellent financial results and the continued growth. We believe that UniBank is well positioned to consistently deliver outstanding returns to our shareholders. This is attributable to the hard work by our staff and the prudent oversight from our board of directors. Most of all, we thank our customers for trusting us for their banking relationships,” said Peter Park, President and CEO of UniBank.

2019 Second Quarter Financial Highlights

Total assets grew 12% to $323.2 million as compared to $288.5 million a year ago.

Total loans, net of reserve, grew 8% to $217.6 million as compared to $202.1 million a year ago.

Total deposits grew 12% to $264.6 million as compared to $255.3 million a year ago.

Net income year to date grew 24% to $2.7 million as compared to $2.2 million one year ago.

Net income for the quarter grew 9% to $1.4 million as compared to $1.3 million one year ago.

Net interest income for the year grew 13% to $6.0 million as compared to $5.3 million one year ago.

Net interest margin for the year was 4.15% as compared to 4.14% one year ago.

Gain on sale of SBA loans was $1.3 million as compared to $908 thousand a year ago.

Return on average equity for the year was 12.06% as compared to 10.85% a year ago.

Return on average assets for the year was 1.75% as compared to 1.58% a year ago.

Nonperforming assets to total assets was 0.14% as compared to 0.47% 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)

Jun-19

Mar-19

Jun-18

 

Jun-19

Jun-18

(Dollars in thousands except EPS) QTD QTD QTD YTD YTD
Interest Income

$

3,967

$

3,851

$

3,354

$

7,818

$

6,330

Interest Expense

 

942

 

899

 

589

 

1,841

 

1,060

Net Interest Income

 

3,025

 

2,952

 

2,765

 

5,977

 

5,270

Provision for Loan and Lease Losses

 

100

 

50

 

200

 

150

 

284

Gain on Sale of SBA/USDA Loans

 

690

 

567

 

764

 

1,257

 

908

Gain on Sale of Securities

 

151

 

-

 

-

 

151

 

-

Other Non-interest Income

 

233

 

190

 

154

 

423

 

402

Non-interest Income

 

1,074

 

757

 

918

 

1,831

 

1,310

Salaries & Benefits

 

1,410

 

1,480

 

1,175

 

2,890

 

2,267

Occupancy Expense

 

154

 

167

 

158

 

321

 

322

Other Expense

 

657

 

527

 

522

 

1,184

 

1,086

Non-interest Expense

 

2,221

 

2,174

 

1,855

 

4,395

 

3,675

Net Income before Income Taxes

 

1,778

 

1,485

 

1,628

 

3,263

 

2,621

Income Taxes

 

350

 

241

 

317

 

591

 

469

Net Income/(Loss)

 

1,428

 

1,244

 

1,311

$

2,672

$

2,152

 
Total Outstanding Shares (in thousands)

 

5,568

 

5,575

 

5,495

 

5,568

 

5,495

Basic Earnings per Share

$

0.26

$

0.23

$

0.24

$

0.49

$

0.39

 
 
Statement of Condition (Unaudited)
Jun-19 Mar-19 Variance Jun-18 Variance
(Dollars in thousands) Qtr End Qtr End Prior Qtr Qtr End Prior Year
 
Cash and Due from Banks

$

40,359

$

38,567

$

1,792

 

$

26,690

$

13,669

 

Investments

 

46,835

 

48,760

 

(1,925

)

 

41,053

 

5,782

 

Gross Loans

 

220,077

 

213,400

 

6,677

 

 

204,378

 

15,699

 

Reserve for Loan Losses

 

2,504

 

2,387

 

117

 

 

2,280

 

224

 

Net Loans

 

217,573

 

211,013

 

6,560

 

 

202,098

 

15,475

 

Fixed Assets

 

6,423

 

6,555

 

(132

)

 

5,908

 

515

 

Foreclosed Assets

 

-

 

100

 

(100

)

 

100

 

(100

)

Other Assets

 

11,979

 

11,689

 

290

 

 

12,676

 

(697

)

Total Assets

$

323,169

$

316,684

$

6,485

 

$

288,525

$

34,644

 

 
Checking

 

45,303

 

44,863

 

440

 

 

39,982

 

5,321

 

NOW

 

9,540

 

6,264

 

3,276

 

 

4,831

 

4,709

 

Money Market

 

95,098

 

90,122

 

4,976

 

 

102,172

 

(7,074

)

Savings

 

8,489

 

7,907

 

582

 

 

8,512

 

(23

)

Certificates of Deposit

 

106,152

 

106,128

 

24

 

 

81,375

 

24,777

 

Total Deposits

 

264,582

 

255,284

 

9,298

 

 

236,872

 

27,710

 

Borrowed Funds

 

10,000

 

15,000

 

(5,000

)

 

10,000

 

-

 

Other Liabilities

 

1,630

 

1,422

 

208

 

 

662

 

968

 

Total Liabilities

 

276,212

 

271,706

 

4,506

 

 

247,534

 

28,678

 

Shareholders' Equity

 

46,957

 

44,978

 

1,979

 

 

40,991

 

5,966

 

Total Liabilities & Equity

$

323,169

$

316,684

$

6,485

 

$

288,525

$

34,644

 

 
 
Financial Ratios

Jun-19

Mar-19

Jun-18

 

Jun-19

Jun-18

(Dollars in thousands except BVS) QTD QTD QTD YTD YTD
Performance Ratios
Return on Average Assets

 

1.84

%

 

1.65

%

 

1.87

%

1.75

%

1.58

%

Return on Average Equity

 

12.54

%

 

11.55

%

 

12.99

%

12.06

%

10.85

%

Net Interest Margin

 

4.15

%

 

4.14

%

 

4.19

%

4.15

%

4.14

%

Efficiency Ratio

 

55.14

%

 

58.62

%

 

50.39

%

56.83

%

55.85

%

 
Capital
Tier 1 Leverage Ratio

 

15.01

%

 

14.77

%

 

14.82

%

Common Equity Tier 1 Ratio

 

18.53

%

 

18.35

%

 

17.78

%

Tier 1 Risk-Based Capital Ratio

 

18.53

%

 

18.35

%

 

17.78

%

Total Risk-Based Capital Ratio

 

19.52

%

 

19.32

%

 

18.75

%

Book Value per Share

$

8.43

 

$

8.07

 

$

7.46

 

 
Asset Quality
Net Loan Charge-Offs (Recoveries)

($17

)

($27

)

$

20

 

Allowance for Loan Losses to Loans

 

1.14

%

 

1.12

%

 

1.12

%

Nonperforming Assets to Total Assets

 

0.14

%

 

0.18

%

 

0.47

%

 

Contacts

U & I Financial Corp.
Investor Relations
Stephanie Yoon, 425-275-9727

Release Summary

U & I Financial Corp. Reports Strong Earnings and Continues Record Growth for 2Q 2019

Contacts

U & I Financial Corp.
Investor Relations
Stephanie Yoon, 425-275-9727