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

Net Income Increases 48% and Record Total Assets and Loans

U & I Financial Corp. 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. 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.

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