On January 1, 1998, UFS Bancorp was established as a mutual holding (parent) company for UniBank. The purpose of the mutual holding company was to allow the bank flexibility for the future in mergers, acquisitions and offerings of various other financial products and services. 

This enabled the formation in July 1999 of a subsidiary, UniBank Fiscal Advisory Services, Inc. (UFASI). UFASI provides a full spectrum of debt management services to towns, school districts and other government units. 

In January 2001, Sterling Associates joined UniBank. Sterling Associates is a bank service company that originates boat, recreational vehicle and manufactured housing loans for client lenders. 

In March 2005, UniBank acquired Dimen Financial Group, Inc., a California-based marine and recreational vehicle loan lender.