LYNNWOOD, Wash.--(BUSINESS WIRE)--U & I Financial Corp. (OTCQX: UNIF), the holding company for UniBank, today reported record quarterly earnings of $1.6 million or $0.28 per share in the third quarter, as compared to $1.5 million or $0.28 per share for the same quarter of 2019, despite $600 thousand in higher Provision for Loan Loss expense. For the year, net income was $4.4 million or $0.80 per share, increasing by $203 thousand or $0.04 per share from the same period last year, despite $1.2 million in higher Provision for Loan Loss expense.
As of September 30, 2020, total assets ended at a record, $393.0 million, increasing by $55.8 million or 16.5% from the year earlier period of $337.2 million. Net loans, combined with Loans Held for Sale, reached a record, $299.0 million, increasing by $68.4 million or 29.7% from the year earlier period of $230.6 million. Finally, total deposits grew by $52.2 million or 18.9% to a record, $328.6 million, from the year earlier period of $276.4 million, primarily from checking accounts.
“We have continued to perform exceptionally well, despite the uncertain economic and public health conditions,” said Peter Park, President and CEO. He added that, “We had the #1 SBA production volume in our lending district among the locally based peers during the SBA’s past fiscal year. We are also excited to announce the launch of our inaugural out-of-state venture, which was the opening of the Atlanta Loan Production Office on October 12th. As we execute our growth strategies, and continue to operate in a safe and sound manner through conservative underwriting and financial management, we believe that we will weather this storm and perhaps even come out ahead. We look forward to the continued success of the Company, and favorable returns to our shareholders.”
2020 Third Quarter Financial Highlights
Total assets grew 16.5% to $393.0 million as compared to $337.2 million a year ago.
Net loans grew 23.4% to $280.7 million as compared to $227.4 million a year ago.
Loans Held for Sale increased 482.5% to $18.3 million as compared to $3.1 million a year ago.
Total deposits grew 18.9% to $328.6 million as compared to $276.4 million a year ago.
Net income year-to-date grew 4.8% to $4.4 million as compared to $4.2 million one year ago.
Net interest margin for the year was 4.30% as compared to 4.29% one year ago.
Gain on sale of SBA/USDA loans for the year was $2.0 million as compared to $1.9 million a year ago.
Return on average equity for the year was 11.04% as compared to 12.22% a year ago.
Return on average assets for the year was 1.61% as compared to 1.79% a year ago.
The Allowance for Loan Losses to Loans, excluding PPP loans, was 1.77% as compared to 1.18% a year ago.
Nonperforming assets to total assets was 0.20% as compared to 0.12% a year ago.
Efficiency ratio (noninterest expense divided by revenue) for the year was 51.82% as compared to 54.99% 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) | ||||||||||||
| Sep-20 | Jun-20 | Sep-19 | Sep-20 | Sep-19 | ||||||||
| (Dollars in thousands except EPS) | QTD | QTD | QTD | YTD | YTD | |||||||
| Interest Income | $4,316 |
|
$4,576 |
|
$4,485 |
|
$12,811 |
|
$12,303 |
|
||
| Interest Expense | 379 |
|
469 |
|
981 |
|
1,752 |
|
2,822 |
|
||
| Net Interest Income | 3,937 |
|
4,107 |
|
3,504 |
|
11,059 |
|
9,481 |
|
||
| Provision for Loan Losses | 800 |
|
400 |
|
200 |
|
1,500 |
|
350 |
|
||
| Gain on Sale of SBA/USDA Loans | 974 |
|
151 |
|
593 |
|
1,996 |
|
1,850 |
|
||
| Gain on Sale of Securities | - |
|
- |
|
- |
|
78 |
|
151 |
|
||
| Other Non-interest Income | 272 |
|
293 |
|
245 |
|
832 |
|
668 |
|
||
| Non-interest Income | 1,246 |
|
444 |
|
838 |
|
2,906 |
|
2,669 |
|
||
| Salaries & Benefits | 1,627 |
|
1,576 |
|
1,518 |
|
4,820 |
|
4,408 |
|
||
| Occupancy Expense | 176 |
|
170 |
|
160 |
|
513 |
|
481 |
|
||
| Other Expense | 642 |
|
609 |
|
569 |
|
1,864 |
|
1,753 |
|
||
| Non-interest Expense | 2,445 |
|
2,355 |
|
2,247 |
|
7,197 |
|
6,642 |
|
||
| Net Income before Income Taxes | 1,938 |
|
1,796 |
|
1,895 |
|
5,268 |
|
5,158 |
|
||
| Income Taxes | 367 |
|
342 |
|
377 |
|
875 |
|
968 |
|
||
| Net Income/(Loss) | 1,571 |
|
1,454 |
|
1,518 |
|
$4,393 |
|
$4,190 |
|
||
| Total Outstanding Shares (in thousands) | 5,581 |
|
5,573 |
|
5,573 |
|
5,581 |
|
5,573 |
|
||
| Basic Earnings per Share | $0.28 |
|
$0.26 |
|
$0.28 |
|
$0.80 |
|
$0.76 |
|
||
| Statement of Condition (Unaudited) | ||||||||||||
| Sep-20 | Jun-20 | Variance | Sep-19 | Variance | ||||||||
| (Dollars in thousands) | Qtr End | Qtr End | Prior Qtr | Qtr End | Prior Year | |||||||
| Cash and Due from Banks | $16,089 |
|
$13,319 |
|
$2,770 |
|
$41,478 |
|
($25,389 |
) |
||
| Investments | 58,490 |
|
58,625 |
|
(135 |
) |
46,803 |
|
11,687 |
|
||
| Loans Held for Sale | 18,296 |
|
7,577 |
|
10,719 |
|
3,141 |
|
15,155 |
|
||
| Gross Loans | 285,010 |
|
284,999 |
|
11 |
|
230,145 |
|
54,865 |
|
||
| Allowance for Loan Losses | (4,304 |
) |
(3,495 |
) |
(809 |
) |
(2,720 |
) |
(1,584 |
) |
||
| Net Loans | 280,706 |
|
281,504 |
|
(798 |
) |
227,425 |
|
53,281 |
|
||
| Fixed Assets | 5,864 |
|
5,976 |
|
(112 |
) |
6,364 |
|
(500 |
) |
||
| Other Assets | 13,524 |
|
13,399 |
|
125 |
|
11,979 |
|
1,545 |
|
||
| Total Assets | $392,969 |
|
$380,400 |
|
$12,569 |
|
$337,190 |
|
$55,779 |
|
||
| Checking | 77,163 |
|
68,711 |
|
8,452 |
|
47,782 |
|
29,381 |
|
||
| NOW | 14,768 |
|
9,284 |
|
5,484 |
|
5,632 |
|
9,136 |
|
||
| Money Market | 117,795 |
|
111,710 |
|
6,085 |
|
114,701 |
|
3,094 |
|
||
| Savings | 10,998 |
|
10,349 |
|
649 |
|
8,028 |
|
2,970 |
|
||
| Certificates of Deposit | 107,919 |
|
113,375 |
|
(5,456 |
) |
100,264 |
|
7,655 |
|
||
| Total Deposits | 328,643 |
|
313,429 |
|
15,214 |
|
276,407 |
|
52,236 |
|
||
| Borrowed Funds | 6,000 |
|
11,200 |
|
(5,200 |
) |
10,000 |
|
(4,000 |
) |
||
| Other Liabilities | 1,790 |
|
1,271 |
|
519 |
|
1,919 |
|
(129 |
) |
||
| Total Liabilities | 336,433 |
|
325,900 |
|
10,533 |
|
288,326 |
|
48,107 |
|
||
| Shareholders' Equity | 56,536 |
|
54,500 |
|
2,036 |
|
48,864 |
|
7,672 |
|
||
| Total Liabilities & Equity | $392,969 |
|
$380,400 |
|
$12,569 |
|
$337,190 |
|
$55,779 |
|
||
| Financial Ratios | ||||||||||||
| Sep-20 | Jun-20 | Sep-19 | Sep-20 | Sep-19 | ||||||||
| (Dollars in thousands except BVS) | QTD | QTD | QTD | YTD | YTD | |||||||
| Performance Ratios | ||||||||||||
| Return on Average Assets | 1.64 |
% |
1.57 |
% |
1.86 |
% |
1.61 |
% |
1.79 |
% |
||
| Return on Average Equity | 11.20 |
% |
11.08 |
% |
12.53 |
% |
11.04 |
% |
12.22 |
% |
||
| Net Interest Margin | 4.37 |
% |
4.65 |
% |
4.56 |
% |
4.30 |
% |
4.29 |
% |
||
| Efficiency Ratio | 47.17 |
% |
51.75 |
% |
51.75 |
% |
51.82 |
% |
54.99 |
% |
||
| Capital | ||||||||||||
| Tier 1 Leverage Ratio | 14.45 |
% |
14.28 |
% |
14.93 |
% |
||||||
| Common Equity Tier 1 Ratio | 20.06 |
% |
18.82 |
% |
18.39 |
% |
||||||
| Tier 1 Risk-Based Capital Ratio | 20.06 |
% |
18.82 |
% |
18.39 |
% |
||||||
| Total Risk-Based Capital Ratio | 21.31 |
% |
20.07 |
% |
19.43 |
% |
||||||
| Book Value per Share | $10.13 |
|
$9.78 |
|
$8.77 |
|
||||||
| Asset Quality | ||||||||||||
| Net Loan Charge-Offs (Recoveries) | ($9 |
) |
($10 |
) |
($27 |
) |
||||||
| Allowance for Loan Losses to Loans | 1.51 |
% |
1.23 |
% |
1.18 |
% |
||||||
| Allowance Ratio, Excluding PPP Loans | 1.77 |
% |
1.43 |
% |
1.18 |
% |
||||||
| Nonperforming Assets to Total Assets | 0.20 |
% |
0.22 |
% |
0.12 |
% |
||||||
