United PanAm Financial Corp. Announces Third Quarter 2005 Results

For the quarter ended Sept. 30, 2005, the company reported income of $7.0 million from continuing operations, compared to income of $4.0 million for the same period a year ago, representing a 75% increase over 2004. The company reported income of $0.37 per diluted share from continuing operations for the third quarter of 2005 compared to $0.23 per diluted share for the same period a year ago, representing a 61% increase over 2004.

Interest income on loans for the third quarter of 2005 rose 37% to $41.3 million from $30.1 million in the third quarter of 2004.

For the nine months ended Sept. 30, 2005, the company reported net income of $20.6 million from continuing operations, compared to net income from continuing operations of $14.5 million for the same period a year ago, representing a 42% increase over 2004. The company reported income of $1.11 per diluted share from continuing operations for the nine months ended Sept. 30, 2005, compared to $0.80 per diluted share for the same period in 2004, representing a 39% increase.

Interest income on loans for the first nine months of 2005 increased 35% to $114.6 million from $85.0 million for the first nine months of 2004.

The company purchased $357.7 million of automobile installment sale contracts during the first nine months of 2005, compared with $279.7 million for the same period in 2004, representing a 28% increase. Automobile installment sale contracts outstanding totaled $646.7 million at Sept. 30, 2005, compared with $502.2 million at Sept. 30, 2004, representing 29% increase. The growth in automobile installment sale contracts is the result of the expansion of our branch network and portfolio growth at the branch level. During the third quarter of 2005, the company opened six new auto finance branches bringing our total to 103 branches in 31 states. The company intends to continue its philosophy of controlled expansion of the auto finance branch network, with the expectation of opening up to four additional new branches before year-end, bringing the total number of new branches for the year to 20.

Delinquencies over 30 days amounted to 0.81% of outstanding automobile installment sale contracts at Sept. 30, 2005, compared with 0.68% at Sept. 30, 2004. Delinquencies and total repossessions over 30 days amounted to 1.26% of outstanding automobile installment sale contracts at Sept. 30, 2005, compared with 1.18% at Sept. 30, 2004.

The annualized quarterly net charge-off rate was 4.58% for the third quarter of 2005, compared with 5.20% for the comparable 2004 period.

"The third quarter of 2005 showed a continuing controlled growth of 29% in automobile installment sale contracts while credit quality continued to be strong as indicated by the 62 basis points drop in the company's net charge-off rate from the comparable period in 2004," said Guillermo Bron, chairman of the board of directors.

UPFC is a specialty finance company engaged in non-prime automobile finance, which includes the purchase, warehousing, securitization and servicing of automobile installment sales contracts originated by independent and franchised dealers of used automobiles. UPFC conducts its automobile finance business through its wholly owned subsidiary, United Auto Credit Corp., with 103 branch offices in 31 states.

Any statements set forth above that are not historical facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act ("SLRA") of 1995, including statements concerning the company's strategies, plans, objectives and intentions. Such statements are subject to a variety of estimates, risks and uncertainties, known and unknown, which may cause the company's actual results to differ materially from those anticipated in such forward-looking statements. Potential risks and uncertainties include, but are not limited to, such factors as our recent shift of the funding source of our business; our dependence on securitizations; our need for substantial liquidity to run our business; loans we made to credit-impaired borrowers; reliance on operational systems and controls and key employees; competitive pressures which we face; rapid growth of our business; fluctuations in market rates of interest; general economic conditions; the effects of accounting changes; and other risks, certain of which are detailed from time to time in the company's filings with the United States Securities and Exchange Commission.

             United PanAm Financial Corp. and Subsidiaries
            Consolidated Statements of Financial Condition

                                                 Sept. 30,    Dec. 31,
                                                     2005        2004
(Dollars in thousands)                         (Unaudited)   (Audited)

Assets
Cash                                              $11,074      $4,237
Short term investments                             22,495         ---
  Cash and cash equivalents                        33,569       4,237
Restricted cash                                    51,372      36,729
Securities available for sale, at fair value      488,412     788,090
Loans                                             614,907     499,343
Allowance for loan losses                         (27,648)    (25,593)
  Loans, net                                      587,259     473,750
Premises and equipment, net                         3,579       3,519
Accrued interest receivable                         7,403       6,901
Other assets                                       24,360      29,601
Assets of discontinued operations                     ---      72,080
    Total assets                               $1,195,954  $1,414,907

Liabilities and Shareholders' Equity
Warehouse line of credit                         $189,380    $101,776
Securities notes payable                          357,890     352,564
Repurchase agreements                             449,065     745,295
Accrued expenses and other liabilities              8,891       8,793
Obligation to purchase a security                  30,048         ---
Junior subordinated debentures/trust 
 preferred security                                10,310      10,310
Liabilities of discontinued operations --
 deposits held for sale                               ---      71,916
    Total liabilities                           1,045,584   1,290,654

Common stock (no par value):
    Authorized, 30,000,000 shares
    Issued and outstanding, 17,111,950 at
     Sept. 30, 2005, and 16,525,832 at 
     Dec. 31, 2004                                 76,738      70,332
Retained earnings                                  73,810      53,517
Unrealized (loss) gain on securities available
 for sale, net                                       (178)        404
    Total shareholders' equity                    150,370     124,253

    Total liabilities and shareholders' 
     equity                                    $1,195,954  $1,414,907


             United PanAm Financial Corp. and Subsidiaries
                 Consolidated Statements of Operations
                              (Unaudited)

(In thousands, except                 Three Months       Nine Months
 per share data)                    Ended Sept. 30,    Ended Sept. 30,
                                     2005     2004      2005     2004
Interest Income
 Loans                            $41,310  $30,100  $114,590  $85,012
 Short term investments and
  securities for sale               4,239    6,358    12,520   15,042
    Total interest income          45,549   36,458   127,110  100,054
Interest Expense
 Securitized notes payable          4,285      342    11,519      342
 Warehouse line of credit           1,876        5     4,266        5
 Repurchase agreements              3,730    3,644    10,597    9,294
 Deposits                             ---    2,895       ---    9,304
 Junior subordinated
  debentures/trust preferred
  security                            170      123       469      352
    Total interest expense         10,061    7,009    26,851   19,297
      Net interest income          35,488   29,449   100,259   80,757
 Provision for loan losses          8,567    7,266    21,125   17,471
      Net interest income after
       provision for loan losses   26,921   22,183    79,134   63,286

Non-interest Income
 Service charges and fees             ---       96       ---      339
 Loan related charges and fees        117       78       342      693
 Gain on sale of securities           502      160     2,534      241
 Other income                          89       69       278      690
    Total non-interest income         708      403     3,154    1,963

Non-interest Expense
 Compensation and benefits         10,077    8,547    29,366   24,016
 Occupancy                          1,031    1,368     2,916    3,897
 Market loss - derivative
  instruments                         ---    2,071       ---    2,368
 Other                              5,088    3,705    15,510   10,582
    Total non-interest expense     16,196   15,691    47,792   40,863

Income from continuing operations
 before income taxes               11,433    6,895    34,496   24,386
Income taxes                        4,468    2,847    13,868    9,905
Income from continuing operations   6,965    4,048    20,628   14,481
(Loss) income from discontinued
 operations net of tax                ---    3,260      (333)   4,088
    Net income                     $6,965   $7,308   $20,295  $18,569
Earnings per share - basic:
Continuing operations               $0.41    $0.25     $1.23    $0.90
Discontinued operations              0.00     0.20     (0.02)    0.25
Net income                          $0.41    $0.45     $1.21    $1.15
    Weighted average shares
     outstanding                   17,030   16,168    16,790   16,146
Earnings per share - diluted:
Continuing operations               $0.37    $0.23     $1.11    $0.80
Discontinued operations              0.00     0.18     (0.02)    0.23
    Net income                      $0.37    $0.41     $1.09    $1.03
    Weighted average shares
     outstanding                   18,835   18,022    18,631   18,012


             United PanAm Financial Corp. and Subsidiaries
                        Selected Financial Data
                              (Unaudited)

(Dollars and shares in            At or For the       At or For the
 thousands)                    Three Months Ended   Nine Months Ended 
                              Sept. 30, Sept. 30,  Sept. 30, Sept. 30,
                                  2005      2004       2005      2004
                       
Automobile Finance Data
Gross contracts purchased     $114,560   $91,177   $357,679  $279,677
Contracts outstanding          646,718   502,150    646,718   502,150
Unearned discount              (31,811)  (22,880)   (31,811)  (22,880)
Allowance for loan losses      (27,648)  (24,973)   (27,648)  (24,973)

Allowance for loan losses 
 to gross loans net of 
 unearned discount                4.50%     5.21%      4.50%     5.21%
Unearned discount to gross
 loans                            4.92%     4.56%      4.92%     4.56%

Annualized net charge-offs to
 average contracts (a)            4.58%     5.20%      4.26%     5.05%
Delinquencies 
 (% of net contracts)
     31-60 days                   0.52%     0.44%      0.52%     0.44%
     61-90 days                   0.19%     0.14%      0.19%     0.14%
     90+ days                     0.10%     0.10%      0.10%     0.10%
         Total                    0.81%     0.68%      0.81%     0.68%

Other Data
Return on average assets from
 continuing operations (a)        2.46%     1.04%      2.44%     1.22%
Return on average shareholders'
 equity from continuing
 operations (a)                  19.10%    14.22%     20.07%    17.66%
Consolidated capital to assets
 ratio                           12.57%     7.34%     12.57%     7.34%

Weighted average shares
 outstanding                    17,030    16,168     16,790    16,146
Additional shares included for
 fully diluted calculations      1,805     1,854      1,841     1,866
Number of shares used in fully
 diluted calculations           18,835    18,022     18,631    18,012

(a) Quarterly and nine month information is annualized for
comparability with full year information.