U & I Financial Corp., headquartered in Lynnwood, Washington, has announced its financial results for the second quarter of 2026, revealing a net loss of $404,000, which translates to a loss of $0.07 per share. This marks a notable decrease from the net income of $757,000 or $0.14 per share reported during the same quarter in the previous year.
As of June 30, 2026, the company’s total assets stand at $393.2 million, reflecting a decrease of $16.4 million, or 4.0%, from $409.6 million reported a year earlier. A significant factor contributing to this decline was the reduction in net loans, which fell to $267.8 million—a reduction of $46.5 million, or 14.8%, from $314.3 million in the prior year.
Total deposits also decreased by $36.4 million, or 10.1%, amounting to $322.5 million as of June 30, 2026, compared to $358.9 million a year ago. However, the bank has seen an improvement in credit quality. Non-accrual loans declined to $1.5 million from $5.6 million the previous year, and the ratio of nonperforming assets to total assets improved to 0.37% from 1.36% in the same period last year.
President and CEO Stephanie Yoon commented on the bank's ongoing challenges with earnings pressure but noted a slight uptick in loan production alongside a significant enhancement in credit quality. During the second quarter, U & I Financial recognized a negative provision for credit losses amounting to $984,000 as opposed to a negative provision of $2.2 million from the same period in 2025.
As of June 30, 2026, U & I Financial Corp. maintained a robust capital position with Tier 1 leverage, risk-based capital, and total risk-based capital ratios at 7.31%, 10.25%, and 11.30% respectively, all exceeding the regulatory minimum thresholds for well-capitalized institutions.
For the second quarter of 2026, U & I Financial Corp. reported a net loss of $404 thousand or $0.07 loss per share, compared to a net income of $757 thousand or $0.14 earnings per share for the same quarter in 2025. Total assets decreased by $16.4 million or 4.0% year-over-year, and net loans decreased by $46.5 million or 14.8% during the same period.
As of June 30, 2026, U & I Financial Corp.'s net loans were reported at $267.8 million, reflecting a decrease of $46.5 million or 14.8% from $314.3 million at June 30, 2025. Additionally, non-accrual loans decreased significantly from $5.6 million in the previous year to $1.5 million.
U & I Financial Corp. reported capital ratios of 7.31% for the Tier 1 Leverage Ratio, 10.25% for the Tier 1 Risk-Based Capital Ratio, and 11.30% for the Total Risk-Based Capital Ratio. These figures indicate the company remains above the 'well capitalized' minimum regulatory guidelines.
Total deposits for U & I Financial Corp. decreased by $36.4 million or 10.1% to $322.5 million as of June 30, 2026, compared to $358.9 million a year earlier.
U & I Financial Corp. acknowledged ongoing earnings pressure, with a reported net loss in the second quarter of 2026, as well as a significant decrease in both loan production and total assets compared to the prior year. Additionally, while the company is observing improvements in credit quality, the financial results indicate challenges in maintaining loan volumes.
President & CEO Stephanie Yoon noted that U & I Financial Corp. is beginning to see an increase in loan production while credit quality is improving. The company has also recognised a negative provision for credit losses, suggesting a shift in the outlook for credit quality.
U & I Financial Corp. identified several risk factors in its forward-looking statements, including compliance with regulatory agreements, competition from various sectors, economic conditions such as declines in real estate markets and interest rate changes, and the potential impact of geopolitical tensions.
More information about U & I Financial Corp., which trades under the ticker symbol OTCQX:UNIF, can be found on their official website www.unibankusa.com or by contacting their investor relations via email.