U & I Financial Corp. Reports Second Quarter 2024 Financial Results

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LYNNWOOD, WA / ACCESSWIRE / July 31, 2024 / U & I Financial Corp. (OTCQX:UNIF), the holding company ("Company") for UniBank ("Bank"), today reported a quarterly Net Loss of $827 thousand or $0.15 loss per share in the second quarter of 2024, compared to $2.4 million of Net Income or $0.44 earnings per share for the same quarter of 2023. Net income decreased by $3.2 million or $0.59 per share, primarily due to an increase in the Provision for Credit Losses of $3.0 million in the second quarter of 2024, compared to no provision during the same period last year.

As of June 30, 2024, Total Assets was $572.6 million, a decrease of $34.6 million or 5.7% from $607.2 million at June 30, 2023. Net Loans were $441.5 million at June 30, 2024, decreasing by $40.5 million or 8.4% from $482.1 million at June 30, 2023. Total Deposits decreased by $65.0 million or 12.6% to $451.9 million at June 30, 2024 compared to $516.9 million a year earlier.

As mentioned in previous earnings releases, the Bank has experienced credit deterioration from Bank borrowers with "commercial-equipment" loans. These loans had provided financing to borrowers to purchase equipment from manufacturers. The manufacturers also service the equipment through operating arrangements with the respective borrowers. The Bank will continue to monitor equipment loans and will continue to adjust our reserves as needed. As of June 30, 2024, the Allowance for Credit Losses (ACL) on Loans and ACL on Off-Balance Sheet Credit Exposure were $17.7 million and $2.2 million, respectively, as compared to $5.1 million and $15 thousand, respectively, as of June 30, 2023. Additional information on credit quality is presented in the tables below.

"During the second quarter the Bank continued to face challenges caused by commercial-equipment loans," said President & CEO Stephanie Yoon. "It will take time to work through these problems so that the Bank can resume its prior growth."

Non-GAAP Financial Metrics

This news release contains certain non-GAAP financial measure disclosures. Management believes these non-GAAP financial measures provide meaningful supplemental information regarding the Company's operational performance, credit quality and capital levels.

About U & I Financial Corp.

UniBank, the wholly owned subsidiary of U & I Financial Corp. (OTCQX: UNIF). Founded in 2006 and based in Lynnwood, Washington, the Bank serves small to medium-sized businesses, professionals, and individuals across the United States with a particular emphasis on government guaranteed loan programs. Customers can access their accounts in any of the four branches - Lynnwood, Bellevue, Federal Way and Tacoma - online, or through the Bank's ATM network.