LYNNWOOD, WA / ACCESSWIRE / January 30, 2024 / U & I Financial Corp. (OTCQX:UNIF), the holding company for UniBank, today reported quarterly net loss of $158 thousand or $0.03 loss per share in the fourth quarter, as compared to $3.4 million or $0.62 earnings per share for the same quarter of 2022, decreasing by $3.6 million or $0.65 per share, primarily due to the $3.1 million in Provision for Credit Losses recognized this quarter as compared to having none for the same quarter of 2022.
As of December 31, 2023, Total Assets reached $622.6 million, increasing by $35.8 million or 6.1% from the year earlier period of $586.8 million. Net Loans ended at $482.3 million, increasing by $27.9 million or 6.1% from the year earlier period of $454.4 million. Finally, Total Deposits grew by $26.1 million or 5.4% to $514.4 million from the year earlier period of $488.3 million.
"The Bank faced significant earnings challenges for the fourth quarter primarily due to the provision for potential deterioration of certain credit relationships. However, under the CECL model we believe that the Bank has adequately built the reserve as of year-end, freeing the Bank to focus on future earnings," said Board Chair D. Benjamin Lee. He added that, "Although the earnings outlook appears subdued this year as with many community banks, UniBank will continue to advance with its strong capital position, prominent community standing, and solid liquidity position."
2023 Fourth Quarter Financial Highlights
Total assets grew 6.1% to $622.6 million as compared to $586.8 million a year ago.
Net loans increased 6.1% to $482.3 million as compared to $454.4 million a year ago.
Total deposits grew 5.4% to $514.4 million as compared to $488.3 million a year ago.
Net interest margin for the year was 3.84% as compared to 4.79% a year ago.
Provision for Credit Losses for the year was $3.2 million as compared to $0 a year ago.
Gain on sale of SBA/USDA loans for the year was $1.4 million as compared to $2.5 million a year ago.
Net income for the year decreased 34.9% to $7.2 million as compared to $11.1 million a year ago.
Return on average equity for the year was 9.44% as compared to 16.29% a year ago.
Return on average assets for the year was 1.20% as compared to 2.22% a year ago.
The allowance for loan losses to loans was 1.69% as compared to 1.00% a year ago.
Nonperforming assets to total assets was 1.71% as compared to 0.05% a year ago.
Efficiency ratio (noninterest expense divided by revenue) for the year was 50.22% as compared to 48.04% 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. Founded in 2006 and based in Lynnwood, Washington, the Bank serves small to medium-sized businesses, professionals, and individuals across the United States with a particular emphasis on government guaranteed loan programs. 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 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.
U & I Financial Corp.
Investor Relations
Simon Bai, 425-275-9704
STATEMENT OF INCOME (Unaudited)
|
|
Dec-23 | Sep-23 | Dec-22 | Dec-23 | Dec-22 | |||||||||||
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(Dollars in thousands except EPS)
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QTD | QTD | QTD | YTD | YTD | |||||||||||
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Interest Income
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$ | 9,374 | $ | 9,616 | $ | 8,418 | $ | 37,720 | $ | 25,914 | ||||||
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Interest Expense
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4,592 | 4,173 | 1,801 | 15,388 | 2,986 | |||||||||||
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Net Interest Income
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4,782 | 5,443 | 6,617 | 22,332 | 22,928 | |||||||||||
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Provision for Credit Losses
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3,069 | 158 | – | 3,227 | – | |||||||||||
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Gain on Sale of SBA/USDA Loans
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(23 | ) | 609 | 1,031 | 1,410 | 2,512 | ||||||||||
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Loan Servicing Fees, Net of Amortization
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119 | 164 | 123 | 660 | 494 | |||||||||||
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Other Non-interest Income
|
172 | 176 | 162 | 850 | 687 | |||||||||||
|
Non-interest Income
|
268 | 949 | 1,316 | 2,920 | 3,693 | |||||||||||
|
Salaries & Benefits
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1,250 | 1,962 | 2,341 | 8,241 | 8,316 | |||||||||||
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Occupancy Expense
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188 | 187 | 188 | 729 | 726 | |||||||||||
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Other Expense
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586 | 1,120 | 1,078 | 3,712 | 3,746 | |||||||||||
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Non-interest Expense
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2,024 | 3,269 | 3,607 | 12,682 | 12,788 | |||||||||||
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Net Income before Income Taxes
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(43 | ) | 2,965 | 4,326 | 9,343 | 13,833 | ||||||||||
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Income Taxes
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115 | 610 | 927 | 2,101 | 2,704 | |||||||||||
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Net Income/(Loss)
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$ | (158 | ) | $ | 2,355 | $ | 3,399 | 7,242 | $ | 11,129 | ||||||
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Total Outstanding Shares (in thousands)
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5,466 | 5,466 | 5,441 | 5,466 | 5,441 | |||||||||||
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Basic Earnings (Loss) per Share
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$ | (0.03 | ) | $ | 0.43 | $ | 0.62 | $ | 1.33 | $ | 2.03 | |||||
| Statement of Condition (Unaudited) | ||||||||||||||||
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|
Dec-23 | Sep-23 | Dec-22 | Variance | Variance | |||||||||||
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(Dollars in thousands)
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Qtr End | Qtr End | Qtr End | Prior Qtr | Prior Year | |||||||||||
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Cash and Due from Banks
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$ | 61,254 | $ | 58,923 | $ | 42,003 | $ | 2,331 | $ | 19,251 | ||||||
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Investments
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51,346 | 48,841 | 51,062 | 2,505 | 284 | |||||||||||
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Loans Held for Sale
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– | – | 12,527 | – | (12,527 | ) | ||||||||||
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Gross Loans
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490,636 | 482,132 | 459,021 | 8,504 | 31,615 | |||||||||||
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Allowance for Credit Losses
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(8,302 | ) | (5,234 | ) | (4,580 | ) | (3,068 | ) | (3,722 | ) | ||||||
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Net Loans
|
482,334 | 476,898 | 454,441 | 5,436 | 27,893 | |||||||||||
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Fixed Assets
|
6,438 | 6,577 | 6,983 | (139 | ) | (545 | ) | |||||||||
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Other Assets
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21,193 | 20,978 | 19,796 | 215 | 1,397 | |||||||||||
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Total Assets
|
$ | 622,565 | $ | 612,217 | $ | 586,812 | $ | 10,348 | $ | 35,753 | ||||||
|
Checking
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$ | 100,135 | $ | 105,770 | $ | 117,491 | $ | (5,635 | ) | $ | (17,356 | ) | ||||
|
NOW
|
13,504 | 14,588 | 13,969 | (1,084 | ) | (465 | ) | |||||||||
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Money Market
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200,966 | 197,296 | 199,303 | 3,670 | 1,663 | |||||||||||
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Savings
|
8,063 | 9,050 | 14,042 | (987 | ) | (5,979 | ) | |||||||||
|
Certificates of Deposit
|
191,733 | 195,429 | 143,449 | (3,696 | ) | 48,284 | ||||||||||
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Total Deposits
|
514,401 | 522,133 | 488,254 | (7,732 | ) | 26,147 | ||||||||||
|
Borrowed Funds
|
20,000 | 8,000 | 22,000 | 12,000 | (2,000 | ) | ||||||||||
|
Other Liabilities
|
8,694 | 3,916 | 4,453 | 4,778 | 4,241 | |||||||||||
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Total Liabilities
|
543,095 | 534,049 | 514,707 | 9,046 | 28,388 | |||||||||||
|
Shareholders’ Equity
|
79,470 | 78,168 | 72,105 | 1,302 | 7,365 | |||||||||||
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Total Liabilities & Equity
|
$ | 622,565 | $ | 612,217 | $ | 586,812 | $ | 10,348 | $ | 35,753 | ||||||
| Financial Ratios | ||||||||||||||||
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|
Dec-23 | Sep-23 | Dec-22 | Dec-23 | Dec-22 | |||||||||||
|
(Dollars in thousands)
|
Qtr End | Qtr End | Qtr End | YTD | YTD | |||||||||||
|
Performance Ratios
|
||||||||||||||||
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Return on Average Assets
|
-0.10 | % | 1.54 | % | 2.37 | % | 1.20 | % | 2.22 | % | ||||||
|
Return on Average Equity
|
-0.80 | % | 11.92 | % | 19.26 | % | 9.44 | % | 16.29 | % | ||||||
|
Net Interest Margin
|
3.23 | % | 3.65 | % | 4.82 | % | 3.84 | % | 4.79 | % | ||||||
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Efficiency Ratio
|
40.08 | % | 51.14 | % | 45.47 | % | 50.22 | % | 48.04 | % | ||||||
|
Capital
|
||||||||||||||||
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Tier 1 Leverage Ratio
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13.13 | % | 13.29 | % | 12.86 | % | ||||||||||
|
Common Equity Tier 1 Ratio
|
16.04 | % | 16.58 | % | 15.95 | % | ||||||||||
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Tier 1 Risk-Based Capital Ratio
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16.04 | % | 16.58 | % | 15.95 | % | ||||||||||
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Total Risk-Based Capital Ratio
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17.29 | % | 17.65 | % | 16.95 | % | ||||||||||
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Book Value per Share
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$ | 14.54 | $ | 14.30 | $ | 13.24 | ||||||||||
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Asset Quality
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||||||||||||||||
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Net Loan Charge-Offs (Recoveries)
|
$ | 0 | $ | 0 | $ | 0 | ||||||||||
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Allowance for Loan Losses to Loans
|
1.69 | % | 1.09 | % | 1.00 | % | ||||||||||
|
Nonperforming Assets to Total Assets
|
1.71 | % | 0.74 | % | 0.05 | % | ||||||||||
SOURCE: U & I Financial Corp. (Washington)
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