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

U & I Financial Corp. (OTCQX: UNIF), the holding company for UniBank, today reported first quarter net income of $1.2 million or $0.23 per share, as compared to $842 thousand or $0.15 per share for the first quarter of 2018. This represents an increase of $402 thousand or 48%. The return on average assets increased to 1.65% from 1.28% for the year earlier period.

As of March 31, 2019 total assets was at a record level at $316.7 million, increasing by $34.6 million or 12% from the year earlier period of $282.1 million. Net loans also ended at a record level at $211.0 million, increasing by $22.0 million or 12% from the year earlier period of $189.0 million.

We are very pleased to start the year with such excellent financial results, continuing the momentum from the previous year. Although the industry is still facing economic head winds, we look forward to another solid performance this year as we are confident that our highly capable staff with oversight from our insightful board of directors will execute on our business model, and enable continued success, said Peter Park, President and CEO of UniBank.

2019 First Quarter Financial Highlights

Total assets grew 12% to $316.7 million as compared to $282.1 million a year ago.

Total loans, net of reserve, grew 12% to $211.0 million as compared to $189.0 million a year ago.

Total deposits grew 7% to $255.3 million as compared to $238.5 million a year ago.

Net income increased 48% to $1.2 million as compared to $842 thousand one year ago.

Net interest income grew 18% to $3.0 million as compared to $2.5 million one year ago.

Net interest margin was 4.14% as compared to 4.07% one year ago.

Gain on sale of SBA loans was $567 thousand as compared to $144 thousand a year ago.

Return on average equity was 11.55% as compared to 8.64% a year ago.

Return on average assets was 1.65% as compared to 1.28% a year ago.

Nonperforming assets to total assets was 0.18% as compared to 0.52% a year ago.

Efficiency ratio (noninterest expense divided by revenue) was 58.62% as compared to 62.79% 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 Banks 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 Reserves 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)
Mar-19 Dec-18 Mar-18 Mar-18 Mar-18
(Dollars in thousands except EPS) QTD   QTD   QTD $ Var   % Var
Interest Income $ 3,851 $ 3,718 $ 2,972 $ 879 30 %
Interest Expense   899     711     471   428     91 %
Net Interest Income 2,952 3,007 2,501 451 18 %
Provision for Loan and Lease Losses 50 84 (34 ) (40 %)
Gain on Sale of SBA/USDA Loans 567 101 144 423 294 %
Other Non-interest Income   190     165     252   (62 )   (25 %)
Non-interest Income 757 266 396 361 91 %
Salaries & Benefits 1,480 1,323 1,092 388 36 %
Occupancy Expense 167 159 163 4 2 %
Other Expense   527     548     564   (37 )   (7 %)
Non-interest Expense 2,174 2,030 1,819 355 20 %
Net Income before Income Taxes 1,485 1,243 994 491 49 %
Income Taxes   241     243     152   89     59 %
Net Income/(Loss) $ 1,244   $ 1,000   $ 842 $ 402     48 %
 
Total Outstanding Shares (in thousands) 5,575 5,575 5,495
Basic Earnings per Share $ 0.23 $ 0.18 $ 0.15
 
         
Statement of Condition (Unaudited)
Mar-19 Dec-18 Mar-18 Mar-18 Mar-18
(Dollars in thousands) Qtr End   Qtr End   Qtr End $ Var   % Var
 
Cash and Due from Banks $ 38,567 $ 31,382 $ 35,167 $ 3,400 10 %
Investments 48,760 47,355 40,320 8,440 21 %
Gross Loans 213,400 210,811 191,076 22,324 12 %
Reserve for Loan Losses   2,387     2,310     2,100   287     14 %
Net Loans 211,013 208,501 188,976 22,037 12 %
Fixed Assets 6,555 5,778 5,977 578 10 %
Foreclosed Assets 100 100 100 0 %
Other Assets   11,689     11,769     11,567   122     1 %
Total Assets $ 316,684   $ 304,885   $ 282,107 $ 34,577     12 %
 
Checking 44,863 38,325 42,076 2,787 7 %
NOW 6,264 6,610 4,683 1,581 34 %
Money Market 90,122 94,082 109,780 (19,658 ) (18 %)
Savings 7,907 8,274 9,362 (1,455 ) (16 %)
Certificates of Deposit   106,128     101,447     72,636   33,492     46 %
Total Deposits 255,284 248,738 238,537 16,747 7 %
Borrowed Funds 15,000 12,000 3,000 12,000 400 %
Other Liabilities   1,422     1,090     584   838     143 %
Total Liabilities   271,706     261,828     242,121   29,585     12 %
Shareholders’ Equity   44,978     43,057     39,986   4,992     12 %
Total Liabilities & Equity $ 316,684   $ 304,885   $ 282,107 $ 34,577     12 %
 
     
Financial Ratios
Mar-19 Dec-18 Mar-18
(Dollars in thousands except BVS) QTD   QTD   QTD
Performance Ratios
Return on Average Assets 1.65 % 1.41 % 1.28 %
Return on Average Equity 11.55 % 9.42 % 8.64 %
Net Interest Margin 4.14 % 4.59 % 4.07 %
Efficiency Ratio 58.62 % 66.19 % 62.79 %
 
Capital
Tier 1 Leverage Ratio 14.77 % 15.47 % 15.22 %
Common Equity Tier 1 Ratio 18.35 % 18.26 % 18.22 %
Tier 1 Risk-Based Capital Ratio 18.35 % 18.26 % 18.22 %
Total Risk-Based Capital Ratio 19.32 % 19.23 % 19.16 %
Book Value per Share $ 8.07 $ 7.72 $ 7.28
 
Asset Quality
Net Loan Charge-Offs (Recoveries) ($27 ) ($11 ) ($16 )
Allowance for Loan Losses to Loans 1.12 % 1.10 % 1.10 %
Nonperforming Assets to Total Assets 0.18 % 0.24 % 0.52 %

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