U & I Financial Corp. Reports First Quarter 2020 Financial Results

Sets New Records as Growth Continues

U & I Financial Corp. UNIF, the holding company for UniBank, today reported first quarter net income of $1.4 million or $0.25 per share, as compared to $1.2 million or $0.23 per share for the first quarter of 2019. This represents an increase of $124 thousand or 10.0%, despite a higher Provision for Loan and Lease Losses expense of $300 thousand, as compared to $50 thousand for the first quarter of 2019.

As of March 31, 2020, total assets ended at a record level at $353.9 million, increasing by $37.2 million or 11.8% from the year earlier period of $316.7 million. Net loans also reached a record level at $242.2 million, increasing by $31.2 million or 14.8% from the year earlier period of $211.0 million. Finally, total deposits grew by $37.4 million or 14.6% to a record level of $292.7 million from the year earlier period of $255.3 million.

"Despite a tumultuous quarter, we are very pleased with the first quarter growth and earnings," said Peter Park, President and CEO. He added that, "The banking industry has been hard-hit by the heightened credit risk from COVID-19, compelling banks to ramp-up loan loss reserves. Although our nonperforming assets ratio as of March 31^st remained relatively unchanged, due to the current economic conditions, we concluded that significantly increasing our loan loss reserve was necessary. However, I am confident that because of our robust capital and liquidity positions, our defensive strategy implemented long before the pandemic, and our extensive government guaranteed loan programs experience, we will weather this storm, and perhaps even come out ahead."

2020 First Quarter Financial Highlights

Total assets grew 11.8% to $353.9 million as compared to $316.7 million a year ago.

Net loans grew 14.8% to $242.2 million as compared to $211.0 million a year ago.

Total deposits grew 14.6% to $292.6 million as compared to $255.3 million a year ago.

Net income increased 10.0% to $1.4 million as compared to $1.2 million one year ago.

Net interest margin was 3.77% as compared to 4.14% one year ago.

Gain on sale of SBA loans was $871 thousand as compared to $567 thousand a year ago.

Return on average equity was 10.76% as compared to 11.55% a year ago.

Return on average assets was 1.62% as compared to 1.65% a year ago.

Nonperforming assets to total assets was 0.19% as compared to 0.18% a year ago.

Efficiency ratio (noninterest expense divided by revenue) was 57.74% as compared to 58.62% 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20200430005037/en/