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Investor Relations

 

 

For Stock Quote Information:  For information on acquisition, sale or transfer of stock, or to receive financial information on the Bank, please contact Peter R. Park, CFO, at (425)275-9707.

 

 

DEAR SHAREHOLDERS, CUSTOMERS AND FRIENDS

July 15, 2008

 

During this time of great turmoil in the banking industry we are pleased to report that your bank, UniBank, has continued to produce 14 continuous months of profitability since we broke-even in May 2007.  As you know from the local news many big banks have faced or are facing billions of dollars in losses.  Some have closed and have been taken over by the government agencies.  During this time we are very proud to tell you that we have no sub-prime loans, nor other high risk mortgages or risky credit card loan portfolios.  Our reported delinquencies are none.  We have high quality loans which are to very good customers such as you.  Unfortunately many banks here and in California are not well off with strained capital; loan and credit losses; large numbers of delinquencies; and foreclosures, even in many other Asian-American banks. 

 

We ended the second quarter of 2008 with Net Income after Tax of $231 thousand.  This makes our first six month profits after tax of $486 thousand.  This is excellent results in this very tough economic environment.  Our six months of 2008 is equal to 200% of the total profits in all twelve months of 2007.  In addition to the very good profitability improvements you also must remember that this is after having to pay $290 thousand in income taxes.  So our pre-tax net income was $776 thousand through only half of a year ending June 30, 2008.  This excellent performance is also shown in the fact that we are ahead of our original projections from the beginning of the bank by $1.1 million.  As I have said in the past this performance could not have been possible without the hard work and dedication of all of our employees and staff.  I am very proud of their performance and I dearly appreciate their support and performance during this interim period as President & CEO.

 

In addition to this good performance in profits the bank also has done a good job of managing our assets.  As you know from the poor financial news these days, the economy is near (if not already in) a recession.  This is traditionally a time when banks face high delinquencies, loan defaults, and loan losses.  During this time UniBank has been very cautious with our credit underwriting guidelines which are reflected in our strong financial condition. 

 

During this time total assets grew to $103.2 million.  Gross loans grew to $79.5 million.  This is consistent with our strategy for 2008 loan and asset growth.  As I mentioned above we are in a down economy so our strategy is to manage to grow very little.  This is not like when we started the bank and grew very quickly.  During a recession you want to grow very slowly if at all.  There are many banks that will actually shrink their banks during tough economic conditions.  Our growth was very manageable at less than $2 million since the end of 2007 in total assets and a very modest $300 thousand increase in net loans. 

 

Our total deposits were $71 million.  Our liquidity is very good and we have several credit facilities in place with the Federal Reserve Bank (FRB), the Federal Home Loan Bank (FHLB), and other correspondent banks to backup our own liquidity.  We are very pleased to tell you that during 2008 both federal agencies FRB and FHLB have increased our credit facilities, over doubling our back-up liquidity.  In addition, we have strong regulatory capital ratios and we are considered by regulatory guidelines as “well capitalized”.

 

We have started new marketing campaigns for deposits and this has helped us gain some deposits.  We also are making sure that all staff members strive always to provide excellent customer service.  Our friends, each of you can help us in this area by opening new accounts with us and by moving deposits from other banks to UniBank.  We promise to pay you a fair rate and provide you with excellent service.  Please look at the services we provide which include free checking, high Money Market rates, free internet banking, free mobile banking, and free depositing into your UniBank by using a huge network of our correspondent banks (US Bank and Wells Fargo). 

 

We are here to service your banking needs and to make loans which help our Asian and other ethnic based communities.  I am also pleased that we again have been acknowledged as a leading SBA lender in the Seattle region.  We also are looking at other government programs through other federal and state agencies such as USDA and WA State Linked Deposit Program to assist our customers in accessing loan funds.

 

Last, I personally thank our staff and all of our customers and friends during this interim period.  It has been my pleasure to run your bank in a safe and sound manner during this period.  As you know our new CEO will be here shortly and please welcome him into our community.

 

Best Regards,

 

Paul G. Sabado

Executive Vice President & CCO and
Interim President & CEO

 

UniBank acts as neither agent nor broker in these communications or resulting transactions and makes no representations as to the value of its stock or the relative “fairness” of any asking or offered price. Non FDIC insured. Not a deposit or other obligation of, or guaranteed by, the depository institution. Subject to investment risks, including possible loss of the principal amount invested.

 

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