LYNNWOOD, Wash.--(BUSINESS WIRE)--U & I Financial Corp. (OTCQX: UNIF), the holding company for UniBank, today reported record annual net income of $5.6 million or $1.02 per share in 2019, as compared to $4.5 million or $0.82 per share for the year earlier period. This represents an increase of $1.1 million or 24.8% from the prior year. For the quarter, net income was $1.4 million. The year to date return on average assets increased to 1.78% from 1.62% for the year earlier period.
As of December 31, 2019, the Company also had record levels of assets, loans and deposits. Total assets increased by $42.6 million or 14.0% to $347.5 million from the year earlier period of $304.9 million. Net loans increased by $32.9 million or 15.8% to $241.4 million from the year earlier period of $208.5 million. Finally, total deposits grew by $40.9 million or 16.4% to $289.6 million from the year earlier period of $248.7 million. The vast majority of this increase was from customer deposits.
“We are very pleased with the financial results and the continued record earnings and growth. We are proud to be one of the top SBA loan producing banks, based in Washington state. In the fourth quarter alone we sold a total of $11.5 million in SBA guarantees for a total gain of $992 thousand. Despite the challenging economic and interest rate environments, we believe that we are well positioned to continue delivering excellent results to our shareholders,” said Peter Park, President and CEO of UniBank.
2019 Financial Highlights
Total assets grew 14.0% to $347.5 million as compared to $304.9 million a year ago.
Total loans, net of reserve, grew 15.8% to $241.4 million as compared to $208.5 million a year ago.
Total deposits grew 16.4% to $289.6 million as compared to $248.7 million a year ago.
Net income year to date grew 24.8% to $5.6 million as compared to $4.5 million one year ago.
Net income for the quarter grew 43.5% to $1.4 million as compared to $1.0 million one year ago.
Net interest income for the year grew 12.4% to $12.5 million as compared to $11.1 million one year ago.
Net interest margin for the year was 4.20% as compared to 4.30% one year ago.
Gain on sale of SBA loans was $2.8 million as compared to $1.6 million a year ago.
Return on average equity for the year was 12.03% as compared to 11.04% a year ago.
Return on average assets for the year was 1.78% as compared to 1.62% a year ago.
Nonperforming assets to total assets was 0.21% as compared to 0.24% a year ago.
Efficiency ratio (noninterest expense divided by revenue) for the year was 55.23% as compared to 57.02% 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) | ||||||||||
Dec-19 |
|
Sep-19 |
|
Dec-18 |
|
Dec-19 |
|
Dec-18 |
||
| (Dollars in thousands except EPS) | QTD |
|
QTD |
|
QTD |
|
YTD |
|
YTD |
|
| Interest Income | $3,988 |
$4,485 |
$3,718 |
$16,291 |
$13,585 |
|||||
| Interest Expense | 961 |
981 |
711 |
3,783 |
2,456 |
|||||
| Net Interest Income | 3,027 |
3,504 |
3,007 |
12,508 |
11,129 |
|||||
| Provision for Loan and Lease Losses | 40 |
200 |
- |
390 |
294 |
|||||
| Gain on Sale of SBA/USDA Loans | 992 |
593 |
101 |
2,841 |
1,639 |
|||||
| Gain on Sale of Securities | - |
- |
- |
151 |
- |
|||||
| Other Non-interest Income | 209 |
245 |
165 |
877 |
784 |
|||||
| Non-interest Income | 1,201 |
838 |
266 |
3,869 |
2,423 |
|||||
| Salaries & Benefits | 1,446 |
1,518 |
1,323 |
5,854 |
4,871 |
|||||
| Occupancy Expense | 156 |
160 |
159 |
637 |
642 |
|||||
| Other Expense | 762 |
569 |
548 |
2,515 |
2,214 |
|||||
| Non-interest Expense | 2,364 |
2,247 |
2,030 |
9,006 |
7,727 |
|||||
| Net Income before Income Taxes | 1,824 |
1,895 |
1,243 |
6,981 |
5,531 |
|||||
| Income Taxes | 389 |
377 |
243 |
1,357 |
1,024 |
|||||
| Net Income/(Loss) | 1,435 |
1,518 |
1,000 |
$5,624 |
$4,507 |
|||||
| Total Outstanding Shares (in thousands) | 5,573 |
5,573 |
5,495 |
5,573 |
5,495 |
|||||
| Basic Earnings per Share | $0.26 |
$0.28 |
$0.18 |
$1.02 |
$0.82 |
| Statement of Condition (Unaudited) | ||||||||||
| Dec-19 | Sep-19 | Variance | Dec-18 | Variance | ||||||
| (Dollars in thousands) | Qtr End | Qtr End | Prior Qtr | Qtr End | Prior Year | |||||
| Cash and Due from Banks | $38,754 |
$41,478 |
($2,724) |
$31,382 |
$7,372 |
|||||
| Investments | 48,994 |
46,803 |
2,191 |
47,355 |
1,639 |
|||||
| Gross Loans | 244,188 |
233,286 |
10,902 |
210,811 |
33,377 |
|||||
| Reserve for Loan Losses | 2,775 |
2,720 |
55 |
2,310 |
465 |
|||||
| Net Loans | 241,413 |
230,566 |
10,847 |
208,501 |
32,912 |
|||||
| Fixed Assets | 6,234 |
6,364 |
(130) |
5,778 |
456 |
|||||
| Foreclosed Assets | - |
- |
- |
100 |
(100) |
|||||
| Other Assets | 12,060 |
11,979 |
81 |
11,769 |
291 |
|||||
| Total Assets | $347,455 |
$337,190 |
$10,265 |
$304,885 |
$42,570 |
|||||
| Checking | 44,988 |
47,782 |
(2,794) |
38,325 |
6,663 |
|||||
| NOW | 8,767 |
5,632 |
3,135 |
6,610 |
2,157 |
|||||
| Money Market | 121,622 |
114,701 |
6,921 |
94,082 |
27,540 |
|||||
| Savings | 9,059 |
8,028 |
1,031 |
8,274 |
785 |
|||||
| Certificates of Deposit | 105,203 |
100,264 |
4,939 |
101,447 |
3,756 |
|||||
| Total Deposits | 289,639 |
276,407 |
13,232 |
248,738 |
40,901 |
|||||
| Borrowed Funds | 5,000 |
10,000 |
(5,000) |
12,000 |
(7,000) |
|||||
| Other Liabilities | 2,361 |
1,919 |
442 |
1,090 |
1,271 |
|||||
| Total Liabilities | 297,000 |
288,326 |
8,674 |
261,828 |
35,172 |
|||||
| Shareholders' Equity | 50,455 |
48,864 |
1,591 |
43,057 |
7,398 |
|||||
| Total Liabilities & Equity | $347,455 |
$337,190 |
$10,265 |
$304,885 |
$42,570 |
| Financial Ratios | ||||||||||
| Dec-19 | Sep-19 | Dec-18 | Dec-19 | Dec-18 | ||||||
| (Dollars in thousands except BVS) | QTD | QTD | QTD | YTD | YTD | |||||
| Performance Ratios | ||||||||||
| Return on Average Assets | 1.75% |
1.86% |
1.41% |
1.78% |
1.62% |
|||||
| Return on Average Equity | 11.50% |
12.53% |
9.42% |
12.03% |
11.04% |
|||||
| Net Interest Margin | 3.95% |
4.56% |
4.59% |
4.20% |
4.30% |
|||||
| Efficiency Ratio | 55.91% |
51.75% |
66.19% |
55.23% |
57.02% |
|||||
| Capital | ||||||||||
| Tier 1 Leverage Ratio | 15.38% |
14.93% |
15.47% |
|||||||
| Common Equity Tier 1 Ratio | 18.27% |
18.39% |
18.26% |
|||||||
| Tier 1 Risk-Based Capital Ratio | 18.27% |
18.39% |
18.26% |
|||||||
| Total Risk-Based Capital Ratio | 19.28% |
19.43% |
19.23% |
|||||||
| Book Value per Share | $9.05 |
$8.77 |
$7.72 |
|||||||
| Asset Quality | ||||||||||
| Net Loan Charge-Offs (Recoveries) | ($15) |
($27) |
($11) |
|||||||
| Allowance for Loan Losses to Loans | 1.14% |
1.17% |
1.10% |
|||||||
| Nonperforming Assets to Total Assets | 0.21% |
0.12% |
0.24% |
