U & I Financial Corp. (OTCQX: UNIF), the holding company for UniBank, today reported record annual net income of $4.5 million or $0.82 per share in 2018, as compared to $3.2 million or $0.60 per share for the year earlier period. Net income increased $1.3 million or 41% from the prior year. Net interest margin increased to 4.30% for the full year as compared to 4.06% in 2017.

As of December 31, 2018 total assets and net loans were at record levels at $304.9 million and $208.5 million, respectively. As compared to December 31, 2017, total assets increased by $30.9 million (11%), and net loans increased by $29.9 million (17%).

“We are very pleased with the financial results as we have started to fire on all cylinders based on our core strengths. Although we are facing some economic head winds entering 2019, we plan on continuing our growth strategies, supported by our dedicated staff and astute board. In turn, we hope to consistently deliver favorable returns to our shareholders,” said Peter Park, President and CEO of UniBank.

2018 Financial Highlights

Total assets grew 11% to $304.9 million as compared to $274.0 million a year ago.

Total loans, net of reserve, grew 17% to $208.5 million as compared to $178.6 million a year ago.

Total deposits grew 8% to $248.7 million as compared to $231.0 million a year ago.

Net income for the year increased 41% to $4.5 million as compared to $3.2 million one year ago.

Net interest income for the year grew 22% to $11.1 million as compared to $9.1 million one year ago.

Net interest margin for the year was 4.30% as compared to 4.06% one year ago.

Return on average equity for the year was 11.04% as compared to 8.35% a year ago.

Return on average assets for the year was 1.62% as compared to 1.29% a year ago.

Nonperforming assets to total assets was 0.24% as compared to 0.58% a year ago.

Efficiency ratio (noninterest expense divided by revenue) for the year was 57.02% as compared to 64.41% 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-18 Sep-18 Dec-17 Dec-18 Dec-17
(Dollars in thousands except EPS) QTD   QTD   QTD YTD   YTD
Interest Income 3,718 3,537 2,813 13,585 10,578
Interest Expense (711 )   (685 )   (379 ) (2,456 )   (1,452 )
Net Interest Income 3,007 2,852 2,434 11,129 9,126
Provision for Loan and Lease Losses - (10 ) (74 ) (294 ) (334 )
Gain on Sale of SBA/USDA Loans 101 630 524 1,639 835
Other Non-interest Income 165     217     377   784     1,232  
Non-interest Income 266 847 901 2,423 2,067
Salaries & Benefits (1,323 ) (1,281 ) (1,021 ) (4,871 ) (3,785 )
Occupancy Expense (159 ) (161 ) (164 ) (642 ) (628 )
Other Expense (548 )   (580 )   (538 ) (2,214 )   (2,458 )
Non-interest Expense (2,030 ) (2,022 ) (1,723 ) (7,727 ) (6,871 )
Net Income before Income Taxes 1,243 1,667 1,538 5,531 3,988
Income Taxes (243 )   (312 )   (204 ) (1,024 ) (793 )
Net Income/(Loss) 1,000     1,355     1,334   4,507     3,195  
 
Average Shares Outstanding 5,495 5,495 5,406 5,485 5,335
Earnings per Share 0.18 0.25 0.25 0.82 0.60
 
Statement of Condition (Unaudited)          
Dec-18 Sep-18 Variance Dec-17 Variance
(Dollars in thousands) Qtr End   Qtr End   Prior Qtr Qtr End   Prior Year
 
Cash and Due from Banks 31,382 38,141 (6,759 ) 44,302 (12,920 )
Investments 47,355 40,493 6,862 33,664 13,691
Gross Loans 210,811 201,774 9,037 180,555 30,256
Reserve for Loan Losses (2,310 )   (2,300 )   (10 ) (2,000 )   (310 )
Net Loans 208,501 199,474 9,027 178,555 29,946
Fixed Assets 5,778 5,842 (64 ) 6,036 (258 )
Foreclosed Assets 100 100 - 100 -
Other Assets 11,769     12,073     (304 ) 11,371     398  
Total Assets 304,885     296,123     8,762   274,028     30,857  
 
Checking 38,325 41,743 (3,418 ) 40,051 (1,726 )
NOW 6,610 4,321 2,289 11,004 (4,394 )
Money Market 94,082 110,466 (16,384 ) 103,960 (9,878 )
Savings 8,274 8,250 24 9,935 (1,661 )
Certificates of Deposit 101,447     72,930     28,517   66,088     35,359  
Total Deposits 248,738 237,710 11,028 231,038 17,700
Borrowed Funds 12,000 16,000 (4,000 ) 3,000 9,000
Other Liabilities 1,090     820     270   589     501  
Total Liabilities 261,828     254,530     7,298   234,627     27,201  
Shareholders' Equity 43,057     41,593     1,464   39,401     3,656  
Total Liabilities & Equity 304,885     296,123     8,762   274,028     30,857  
 
Financial Ratios        
Dec-18 Sep-18 Dec-17 Dec-18 Dec-17
(Dollars in thousands except BVS) QTD   QTD   QTD YTD   YTD
Performance Ratios
Return on Average Assets 1.41 % 1.88 % 2.09 % 1.62 % 1.29 %
Return on Average Equity 9.42 % 13.08 % 13.64 % 11.04 % 8.35 %
Net Interest Margin 4.59 % 4.23 % 4.25 % 4.30 % 4.06 %
Efficiency Ratio 66.19 % 54.69 % 55.07 % 57.02 % 64.41 %
 
Capital
Tier 1 Leverage Ratio 15.47 % 14.85 % 15.45 %
Common Equity Tier 1 Ratio 18.26 % 18.41 % 19.00 %
Tier 1 Risk-Based Capital Ratio 18.26 % 18.41 % 19.00 %
Total Risk-Based Capital Ratio 19.23 % 19.40 % 19.96 %
Book Value per Share 7.7 7.6 7.2
 
Asset Quality
Net Loan Charge-Offs (Recoveries) (11 ) (26 ) (99 )
Allowance for Loan Losses to Loans 1.10 % 1.14 % 1.11 %
Nonperforming Assets to Total Assets 0.24 % 0.49 % 0.58 %