LYNNWOOD, WA / ACCESSWIRE / July 29, 2021 / U & I Financial Corp. (OTCQX:UNIF), the holding company for UniBank, today reported record quarterly earnings of $2.2 million or $0.41 per share in the second quarter, as compared to $1.5 million or $0.26 per share for the same quarter of 2020, increasing by $787 thousand or 54.1%, primarily due to higher gain on sale of government guaranteed loans.
As of June 30, 2021, total assets reached a record, $417.1 million, increasing by $36.7 million or 9.6% from the year earlier period of $380.4 million. Net loans ended at $274.5 million, decreasing by $7.0 million or 2.5% from the year earlier period of $281.5 million, primarily due to the SBA PPP Loan forgiveness activities. However, loans held for sale increased by $12.7 million from last year, outweighing the net loans decrease. Finally, total deposits grew by $34.4 million or 11.0% to a record, $347.8 million, from the year earlier period of $313.4 million.
As of June 30, 2021, the SBA PPP loans totaled $19.1 million. During the year, a total of $34.7 million PPP loans was forgiven, of which $24.2 million was in the second quarter. New PPP loans during 2021 totaled $15.9 million, all in the first quarter.
'Despite the continued economic uncertainties, we have been fortunate to perform well,' said Peter Park, President and CEO. He added that, 'Net loans decreased from the prior quarter, but this is mainly due to the timing of PPP loans and our focus on originating government guaranteed loans, which are reflected in the increase in loans held for sale. With a robust pipeline, we expect the core loan portfolio to continue to grow in the near future. Furthermore, as the worst of COVID-19 appears to be behind us, we are pleased that the vast majority of our business customers have found their footings. We thank our shareholders and customers for their continued support during these uncertain times.'
2021 Second Quarter Financial Highlights
Total assets grew 9.6% to $417.1 million as compared to $380.4 million a year ago.
Net loans declined 2.5% to $274.5 million as compared to $281.5 million a year ago.
Loans held for sale increased to $20.3 million as compared to $7.6 million a year ago.
Total deposits grew 11.0% to $347.8 million as compared to $313.4 million a year ago.
Net income quarter-to-date grew 54.1% to $2.2 million as compared to $1.5 million one year ago.
Net income year-to-date grew 36.7% to $3.9 million as compared to $2.8 million one year ago.
Net interest margin for the year was 4.32% as compared to 4.26% one year ago.
Gain on sale of SBA/USDA loans for the year was $1.7 million as compared to $1.0 million a year ago.
Return on average equity for the year was 12.86% as compared to 10.95% a year ago.
Return on average assets for the year was 1.98% as compared to 1.59% a year ago.
The allowance for loan losses to loans, excluding PPP loans, was 1.76% as compared to 1.43% a year ago.
Nonperforming assets to total assets was 0.15% as compared to 0.22% a year ago.
Efficiency ratio (noninterest expense divided by revenue) for the year was 54.03% as compared to 54.60% 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, the SBA's Paycheck Protection Program; 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.
Stephanie Yoon, 425-275-9727
SOURCE: U & I Financial Corp. (Washington)
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