Investor Relations

DEAR SHAREHOLDERS

July 24, 2011

Even in the midst of the worst economic recession since the Great Depression, we are pleased to report that U&I Financial Corp. recorded net income of $501,633 in the first half of 2011. U&I Financial had $140 million in total assets, $104 million in net loans and $108 million in total deposits at June 30, 2011. As the effects of the current recession continue to linger, the Board of Directors and Management are deliberately controlling asset growth as a precaution.

On March 1, 2011, UniBank opened its third branch office in Federal Way. In view of the fact that many banks are forced to reduce the number of branch offices due to the recession and poor financial performance, we are pleased to have been able to obtain regulatory approval to expand our branch network as planned to better serve our customers’ financial needs and to improve our profitability.

On a different note, we have decided to temporarily postpone our common stock offering, pursued in preparation for the next stage of growth through an acquisition of a competitor bank, as economic conditions have shown signs of further deterioration in recent weeks. As a result, the previously announced quarterly dividend payout and dividend share repurchase plans have been postponed as well. We will, however, continue with our annual stock dividend payout as planned.

U&I Financial Corp. received $5.5 million Small Business Lending Fund (SBLF) from U. S. Treasury Department on July 6, 2011. That we were one of the first six recipients out of 869 financial institutions that applied for the SBLF, we received unexpected but very positive local and national media coverage, including congratulatory remarks from U.S. Senator Maria Cantwell. Not only did U&I Financial make the Korean community and the State of Washington proud but also effectively demonstrated the financial strength and soundness of UniBank.

Please be assured that the Board of Directors and Management are committed to doing our utmost in serving our customers’ financial needs and maximizing the value of our shareholders. We hope to report good news to you next January with strong financial results for the year 2011.

Your unwavering trust and support of U&I Financial Corp. and UniBank for continued growth and success would be very much appreciated.

Truly yours,

John Oh, UniBank Chairman
John Chang, U&I Financial Corp. Chairman
Daniel Changyol Lee, President & CEO

 

 IRS Form 8937 (Report of Organizational Actions Affecting Basis of Securities)

IRS Form 8937 (Report of Organizational Actions Affecting Basis of Securities) is being made accessible to our shareholders in connection with the 2 to 1 stock split and stock dividend payout effected on February 18, 2011.  Please contact Ms. Stephanie Yoon at (425)275-9727 for additional information and/or questions.

For Stock Quote Information: 

For information on acquisition, sale or transfer of stock, or to receive financial information on the Bank, please contact Stephanie Yoon, at (425)275-9727.

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.