U&I Financial Corp. publishes its financial results for the third quarter of 2021

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LYNNWOOD, WA / ACCESSWIRE / October 26, 2021 / U&I Financial Corp. (OTCQX: UNIF), the holding company of UniBank, today announced a record quarterly profit of $ 2.3 million or $ 0.42 per share in the third quarter, from $ 1.6 million or 0, $ 28 per share for the same quarter of 2020, increasing by $ 768,000 or 48.9%, mainly due to the lack of allowance for loan losses this quarter and the generation of higher net interest income.

As of September 30, 2021, total assets reached a record $ 437.6 million, up $ 44.7 million or 11.4% from the prior year period of $ 393.0 million of dollars. Net lending ended at a record high of $ 318.2 million, up $ 37.5 million or 13.4% from the prior year period of $ 280.7 million. Finally, total deposits increased by $ 36.6 million or 11.1% to a record $ 365.2 million compared to the previous year period of $ 328.6 million.

As of September 30, 2021, SBA PPP loans amounted to $ 12.9 million. During the year, a total of $ 40.8 million in PPP loans were canceled, including $ 6.2 million in the third quarter.

“We are very proud of our employees who achieved another record quarter of performance despite the current economic and public health challenges,” said Peter Park, President and CEO. He added that “our business model of serving the minority and other underserved business communities through government guaranteed loans has proven to be exceptionally favorable in these uncertain times. Net lending increased 13.4% from the previous year, despite the SBA’s total cancellation of PPP loans of $ 40.8 million this year. As we look forward to hitting the $ 500 million total asset milestone in the near future, we will continue to invest in our people and infrastructure to deliver consistent returns to our shareholders. “

Third Quarter 2021 Financial Highlights

Total assets increased 11.4% to $ 437.6 million, from $ 393.0 million a year ago.

Net lending increased 13.4% to $ 318.2 million from $ 280.7 million a year ago.

Total deposits rose 11.1% to $ 365.2 million, from $ 328.6 million a year ago.

Year-to-date net income increased 48.9% to $ 2.3 million from $ 1.6 million a year ago.

Year-to-date net income increased 41.1% to $ 6.2 million from $ 4.4 million a year ago.

The net interest margin for the year was 4.40% compared to 4.30% a year ago.

The gain on the sale of SBA / USDA loans for the year was $ 2.9 million, up from $ 2.0 million a year ago.

The average return on equity for the year was 13.41% compared to 11.04% a year ago.

The return on average assets for the year was 2.07% compared to 1.61% a year ago.

The allowance for loan losses, excluding PPP loans, was 1.48% compared to 1.77% a year ago.

Non-performing assets to total assets were 0.07% compared to 0.20% a year ago.

The efficiency ratio (non-interest expense divided by income) for the year was 53.33% compared to 51.82% a year ago.

About U & I Financial Corp.

UniBank, the wholly owned subsidiary of U & I Financial Corp. (OTCQX: UNIF), is one of the best performing banks in Washington State in terms of return on assets. Based in Lynnwood, Washington, the Bank was founded in 2006 to serve small and medium businesses, professionals and residents with a special focus on Korean communities and other ethnic minorities. Customers can access their accounts at 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.

Safe Harbor Forward-Looking Statement: This press release contains comments or information that constitutes forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) based on current expectations involving a number of risks and uncertainties. Forward-looking statements describe U & I Financial Corp’s projections, estimates, plans and expectations for future results. “Expect”, “look to the future” and the like. They are not guarantees of future performance. Actual results may differ materially from the results expressed in these forward-looking statements, which, due to their forward-looking nature, are difficult to predict. Investors should not place undue reliance on forward-looking statements and should consider factors that could cause differences, including, but not limited to, the degree of competition from traditional and non-traditional competitors, declining real estate markets, increased unemployment or sustained high levels. unemployment; changes in interest rates; adverse changes in local, national and international economies; changes in the actions of the Federal Reserve that affect monetary and fiscal policies; changes in actions or legislative or regulatory reforms, including, without limitation, the Dodd-Frank Act on Wall Street Reform and Consumer Protection, the SBA’s Paycheck Protection Program; demand for products and services; changes in the quality of the loan portfolio and our ability to succeed in our problem and asset resolution efforts; persistent uncertainties related to COVID-19; the impact of technological advances; changes in tax laws; and other risk factors. U&I Financial Corp. assumes 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 RESULTS (Unaudited)
Sep-21 June-21 Sep 20 Sep-21 Sep 20

(Dollars in thousands except EPS)

QTD QTD QTD YTD YTD

Interest income

$ 4,639 $ 4 334 $ 4.316 $ 12,909 $ 12 811

Interest charges

179 182 379 575 1,752

Net interest income

4,460 4,152 3 937 12 334 11,059

Allowance for loan losses

800 1,500

Gain on sale of SBA / USDA loans

1,191 933 974 2852 1,996

Loan service charges, net of amortization

139 198 163 483 498

Other non-interest income

252 218 109 727 412

Income other than interest

1,582 1,349 1,246 4,062 2,906

Salaries and Benefits

2,290 1925 1,627 6,240 4 820

Occupancy costs

171 167 176 514 513

Other expenses

689 647 642 1990 1,864

Non-interest charges

3 150 2,739 2,445 8,744 7,197

Net profit before income taxes

2,892 2,762 1,938 7 652 5,268

Income taxes

553 521 367 1,454 875

Net income / (loss)

$ 2 339 $ 2 241 $ 1,571 $ 6,198 $ 4.393

Total shares outstanding (in thousands)

5,579 5,579 5,581 5,579 5,581

Basic earnings per share

$ 0.42 $ 0.41 $ 0.28 $ 1.12 $ 0.80

Statement of condition (unaudited)

Sep-21 June-21 Variance Sep 20 Variance

(dollars in thousands)

End of term End of term Previous quarter End of term Last year

Cash and bank receivables

$ 25,092 $ 41 671 $ (16,579) $ 16 089 $ 9,003

Investments

57,041 57,603 (562) 58,490 (1449)

Loans held for sale

13 946 20,294 (6,348) 18,296 (4,350)

Gross loans

322,810 279,058 43 752 285,010 37,800

Allowance for loan losses

(4,577) (4,568) (9) (4,304) (273)

Net loans

318 233 274,490 43 743 280,706 37,527

Fixed assets

5 676 5,800 (124) 5,864 (188)

other assets

17,632 17 233 399 13 524 4,108

Total assets

$ 437 620 $ 417,091 $ 20,529 $ 392,969 $ 44 651

Verification

$ 103 786 $ 88,562 $ 15 224 $ 77,163 $ 26 623

NOW

12 154 9,441 2,713 14 768 (2.614)

Money Market

137,030 123,436 13,594 117,795 19,235

Savings

16 130 12 915 3 215 10,998 5.132

Certificates of deposit

96 107 113,438 (17 331) 107 919 (11 812)

Total deposits

365,207 347,792 17,415 328 643 36,564

Borrowed funds

5,000 5,000 6000 (1000)

Other liabilities

2,400 1,548 852 1790 610

Total responsibilities

372,607 354,340 18,267 336,433 36 174

Equity

65,013 62,751 2 262 56,536 8,477

Total liabilities and equity

$ 437 620 $ 417,091 $ 20,529 $ 392,969 $ 44 651

Financial ratios

Sep-21 June-21 Sep 20 Sep-21 Sep 20

(Dollars in thousands except BVS)

QTD QTD QTD YTD YTD

Performance reports

Return on average assets

2.22% 2.29% 1.64% 2.07% 1.61%

Return on average equity

14.43% 14.65% 11.20% 13.41% 11.04%

Net interest margin

4.55% 4.55% 4.37% 4.40% 4.30%

Efficiency ratio

53.36% 49.79% 47.17% 53.33% 51.82%

Capital city

Level 1 leverage ratio

15.21% 15.55% 14.45%

Ordinary Tier 1 capital ratio

19.73% 20.83% 20.06%

Level 1 risk-based capital ratio

19.73% 20.83% 20.06%

Risk-based total capital ratio

20.98% 22.08% 21.31%

Book value per share

$ 11.65 $ 11.25 $ 10.13

Asset quality

Net loan write-offs (recoveries)

($ 9) $ 0 ($ 9)

Allowance for loan losses

1.42% 1.64% 1.51%

Provision ratio, excluding PPP loans

1.48% 1.76% 1.77%

Non-performing assets in relation to total assets

0.07% 0.15% 0.20%

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

THE SOURCE: U & I Financial Corp.

See the source version on accesswire.com:
https://www.accesswire.com/669222/UI-Financial-Corp-Reports-Third-Quarter-2021-Financial-Results


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