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

Record Earnings and Growth Continue in the Third Quarter

U & I Financial Corp. UNIF, the holding company for UniBank, today reported third quarter year to date net income of $4.2 million or $0.76 per share, as compared to $3.5 million or $0.64 per share for the same period in 2018. This represents an increase of $683 thousand or 19.5%. For the quarter, net income was a record at $1.5 million. The year to date return on average assets increased to 1.79% from 1.69% for the year earlier period.

As of September 30, 2019 the Company also had record levels of assets, loans and deposits. Total assets increased by $41.1 million or 13.9% to $337.2 million from the year earlier period of $296.1 million. Net loans increased by $31.1 million or 15.6% to $230.1 million from the year earlier period of $199.5 million. Finally, total deposits grew by $38.7 million or 16.3% to $276.4 million from the year earlier period of $237.7 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, despite the current economic uncertainty. We are fortunate to operate in the Pacific Northwest, where the economy has been relatively strong, and where we are the only locally based Asian American bank. Our success could not have been possible without our talented staff, insightful board, and dedicated customers. We hope to extend delivering such excellent returns to our shareholders," said Peter Park, President and CEO of UniBank.

2019 Third Quarter Financial Highlights

Total assets grew 13.9% to $337.2 million as compared to $296.1 million a year ago.

Total loans, net of reserve, grew 15.6% to $230.6 million as compared to $199.5 million a year ago.

Total deposits grew 16.3% to $276.4 million as compared to $237.7 million a year ago.

Net income year to date grew 19.5% to $4.2 million as compared to $3.5 million one year ago.

Net income for the quarter grew 12.1% to $1.5 million as compared to $1.4 million one year ago.

Net interest income for the year grew 16.7% to $9.5 million as compared to $8.1 million one year ago.

Net interest margin for the year was 4.29% as compared to 4.15% one year ago.

Gain on sale of SBA loans was $1.9 million as compared to $1.5 million a year ago.

Return on average equity for the year was 12.22% as compared to 11.62% a year ago.

Return on average assets for the year was 1.79% as compared to 1.69% a year ago.

Nonperforming assets to total assets was 0.12% as compared to 0.49% 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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