U & I Financial Corp., the Lynnwood, Washington-based holding company for UniBank, reported a third-quarter 2026 net loss of $824 thousand, or $0.15 loss per share. The company recorded a net loss of $258 thousand, or $0.05 loss per share, in the same quarter of 2025.
#Assets, loans and deposits
Total assets stood at $380.1 million on September 30, 2026, down $15.1 million or 3.8% from $395.1 million on September 30, 2025.
Net loans were $259.1 million at September 30, 2026, compared with $298.2 million a year earlier. Total deposits were $312.3 million, down from $344.7 million at September 30, 2025.
#Credit performance
U & I Financial recorded a negative Provision for Credit Losses of $325 thousand during the third quarter of 2026, compared with a negative Provision for Credit Losses of $800 thousand in the corresponding quarter of 2025.
The bank reported credit recoveries totaling $226 thousand and no charge offs for the quarter. In the same period of 2025, it recorded a net charge off of $14 thousand, primarily associated with commercial equipment loans activities.
Total non-accrual loans were $1.5 million at September 30, 2026, compared with $5.3 million at September 30, 2025. Nonperforming assets represented 0.38% of total assets, compared with 1.35% a year earlier.
Under the bank's stated policy, loans are placed on non-accrual once they are 90 days past due, or sooner if management believes a borrower may be unable to meet payment obligations as they become due. Loans may also be placed on non-accrual when required by regulatory provisions.
#Capital ratios
As of September 30, 2026, UniBank's Tier 1 Leverage Ratio was 7.15%, its Tier 1 Risk-Based Capital Ratio was 10.23% and its Total Risk-Based Capital Ratio was 11.26%. The bank said all three ratios remained above the “well capitalized” minimum regulatory guidelines at that date.
The comparable ratios at September 30, 2025 were 7.32%, 9.62% and 10.63%, respectively.
#Leadership and Bellevue branch plans
UniBank promoted Yuko Elliott to Chief Credit Officer effective September 21, 2026. Elliott joined the bank in 2019 and previously held the position of SVP & Senior Credit Administrator. The company said she has more than 30 years of credit experience, primarily in community banking.
The bank plans to close its Bellevue, Washington, branch on October 30, 2026. It said the closure is expected to reduce costs overall and improve efficiency at nearby branches, where Bellevue customers and deposits are expected to be consolidated. The bank said the Bellevue location no longer aligns with its target market and that the transition is expected to cause minimal disruption to affected customers.
#Company background and disclosures
UniBank is the wholly owned subsidiary of U & I Financial Corp. 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. Its customers can access accounts through branches in Lynnwood, Bellevue, Federal Way and Tacoma, as well as online and through the bank's ATM network.
The release included non-GAAP financial measure disclosures, which management described as supplemental information on operational performance, credit quality and capital levels.
U & I Financial said its forward-looking statements are subject to risks and uncertainties. The risks identified included compliance with the Written Agreement with the Federal Reserve Bank of San Francisco and the Washington Department of Financial Institutions, litigation and investigations, competition, changes in real estate markets, unemployment, interest rates, economic conditions, tariffs, trade restrictions, geopolitical tensions, Federal Reserve actions, legislative and regulatory changes, demand for products and services, further deterioration in loan quality, continued losses, commercial-equipment loan performance, future increases in the Provision for Credit Losses, technological changes and tax law changes.
#Key Takeaways
- U & I Financial reported a third-quarter 2026 net loss of $824 thousand, or $0.15 loss per share.
- Total assets, net loans and total deposits were lower at September 30, 2026 than at September 30, 2025.
- The bank reported $226 thousand in credit recoveries and no charge offs during the quarter.
- All three reported capital ratios remained above the “well capitalized” minimum regulatory guidelines.
- Yuko Elliott became Chief Credit Officer, while the Bellevue branch is planned to close on October 30, 2026.
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