United PanAm Financial Announces First Quarter 2001 Results; New CFO Appointed
NEWPORT BEACH, Calif.--April 25, 2001--United PanAm Financial Corp. today announced results for its first quarter ended March 31, 2001.For the quarter, the company reported net income of $1.5 million, or $ 0.10 per diluted share, compared with net income of $1.0 million, or $0.06 per diluted share, for the same period a year ago.
Interest income for the first quarter rose to $13.9 million compared with $8.4 million a year ago. Net interest income increased to $8.4 million for the 2001 first quarter from $6.7 million a year earlier.
"Continued controlled growth in our automobile finance operations contributed to the increase in net interest income and net income," said Guillermo Bron, Chairman of the Board and Chief Executive Officer. "The quality of these operations, with their historically low charge-offs and delinquencies, are the basis for our future."
Automobile receivables rose to $172.3 million at March 31, 2001 from $118.7 million in the comparable period a year ago, while annualized net charge-offs were 4.39% in the 2001 first quarter and 3.99% in the comparable period a year ago. Total delinquencies as a percentage of net auto contracts outstanding declined to 0.44% at March 31, 2001 from 0.46% at March 31, 2000. During the past year, the company opened nine automobile finance branches for a total of 31 branches in 14 states.
The insurance premium finance business with $34.2 million in loans outstanding at March 31, 2001 also contributed to net income.
During the first quarter of 2001, the company, through its subsidiaries and divisions, purchased gross auto contracts totaling $57.7 million and originated $24.3 million in insurance premium finance loans. This compares with $40.3 million and $25.0 million, respectively, in the 2000 first quarter.
At March 31, 2001 the company's capital to assets ratio was 14.27% compared with 14.15% at December 31, 2000 and 19.14% at March 31, 2000, with shareholders' equity totaling $71.0 million up from $69.3 million at December 31, 2000. Pan American Bank, FSB the company's banking subsidiary, continues to be "well capitalized" at March 31, 2001 under current Office of Thrift Supervision capital regulations.
The company also today announced that Garland W. Koch has been named Vice President and Chief Financial Officer, assuming responsibility for accounting, corporate finance, financial planning and treasury functions. Koch, age 49, who brings more than 25 years of experience in the financial industry to his new role most recently served as Chief Financial Officer of First Citizens National Bank, Mason City, Iowa. He joined United PanAm in October 2000 and succeeds Carol M. Bucci, who is leaving the company in the next few months as a result of the company's relocation to Southern California.
United PanAm Financial Corp., a specialty finance company, originates and acquires for investment retail automobile installment sales contracts and automobile insurance premium finance contracts. The company's principal operating units include United Auto Credit Corporation, with 31 branch offices in Arizona, California, Colorado, Florida, Georgia, Kansas, Maryland, Missouri, North Carolina, Oregon, Texas, Utah, Virginia and Washington; the insurance premium finance division, which through a joint venture is the largest non-insurance provider of financing for consumer automobile insurance premiums in California; and Pan American Bank, FSB, the largest Hispanic-controlled savings association in California, with four retail branch offices in the state and $355.5 million in deposits at March 31, 2001.
Any statements set forth above that are not historical facts are forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act ("SLRA") of 1995, including the 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 limited operating history, the impaired or limited credit history of the company's borrowers, the availability of additional financing, the concentration of the company's business in California, rapid growth of the company's businesses, the accuracy of the charges included in the discontinued operations cost estimate, the reliance on the company's systems and controls and key employees, fluctuations in market rates of interest, general economic conditions 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
(Unaudited)
(Dollars in thousands)
March 31, December 31,
2001 2000
------------ ------------
Assets
Cash and due from banks $ 4,281 $ 6,115
Short term investments 95,925 36,477
------------ ------------
Cash and cash equivalents 100,206 42,592
Securities available for sale,
at fair value 181,063 223,265
Residual interests in securitizations,
at fair value -- 8,861
Loans, net 193,090 192,368
Loans held for sale -- 712
Premises and equipment, net 1,727 1,591
Federal Home Loan Bank stock, at cost 3,048 3,000
Accrued interest receivable 2,252 814
Real estate owned, net 403 871
Other assets 15,529 15,904
------------ ------------
Total assets $497,318 $489,978
============ ============
Liabilities and Shareholders' Equity
Deposits $355,555 $348,230
Federal Home Loan Bank advances 60,000 60,000
Accrued expenses and other liabilities 10,757 12,431
------------ ------------
Total liabilities 426,312 420,661
------------ ------------
Common stock (no par value):
Authorized, 30,000,000 shares
Issued and outstanding, 16,158,650
and 16,149,650 shares at
March 31, 2001 and December 31, 2000,
respectively 65,291 65,291
Retained earnings 5,068 3,524
Unrealized gain on securities
available for sale, net 647 502
------------ ------------
Total shareholders' equity 71,006 69,317
------------ ------------
Total liabilities and
shareholders' equity $497,318 $489,978
============ ============
United PanAm Financial Corp. and Subsidiaries
Consolidated Statements of Operation
(Unaudited)
(In thousands, except per share data)
Three Months
Ended March 31,
-------------------------
2001 2000
---------- ----------
Interest Income
Loans $ 10,290 $ 7,675
Securities 3,640 711
---------- ----------
Total interest income 13,930 8,386
---------- ----------
Interest Expense
Deposits 5,020 1,703
Federal Home Loan Bank advances 515 --
---------- ----------
Total interest expense 5,535 1,703
---------- ----------
Net interest income 8,395 6,683
Provision for loan losses 44 72
---------- ----------
Net interest income after
provision for loan losses 8,351 6,611
---------- ----------
Non-interest Income
Service charges and fees 165 153
Loan related charges and fees 75 54
Gain on sale of securities 357 --
Other income 33 32
---------- ----------
Total non-interest income 630 239
---------- ----------
Non-interest Expense
Compensation and benefits 3,709 3,097
Occupancy 764 533
Other 1,979 1,526
---------- ----------
Total non-interest expense 6,452 5,156
---------- ----------
Income before income taxes 2,529 1,694
Income taxes 985 692
---------- ----------
Net income $ 1,544 $ 1,002
========== ==========
Earnings per share-basic:
Net income $ 0.10 $ 0.06
========== ==========
Weighted average
shares outstanding 16,153 16,533
========== ==========
Earnings per share-diluted:
Net income $ 0.10 $ 0.06
========== ==========
Weighted average shares outstanding 16,227 16,747
========== ==========
United PanAm Financial Corp. and Subsidiaries
Selected Financial Data
(Unaudited)
(Dollars in thousands)
At or For the
Three Months Ended
--------------------------
March 31, March 31,
2001 2000
----------- ----------
Automobile Finance Data
Gross contracts purchased $ 57,743 $ 40,328
Net contracts outstanding 172,297 118,693
Annualized net charge-offs
to average contracts (1) 4.39% 3.99%
Delinquencies (% of net contracts)
31-60 days 0.28% 0.26%
61-90 days 0.09% 0.10%
91+ days 0.07% 0.10%
Insurance Premium Finance Data
Loans Originated $ 24,269 $ 24,993
Loans outstanding at period end 34,183 31,076
Annualized net charge-offs
to average loans (1) 0.61% 0.61%
Other Data
Return on average assets (1) 1.25% 1.00%
Return on average
shareholders' equity (1) 8.78% 5.26%
Retail deposits $297,712 $278,423
Wholesale deposits 57,843 16,793
Weighted average interest
rate on deposits 5.57% 5.13%
Allowance for credit losses to total loans 7.82% 8.63%
Consolidated capital to assets ratio 14.27% 19.14%
Pan American Bank capital ratios:
Tangible 8.86% 11.76%
Core 8.86% 11.76%
Risk based
18.66% 11.96%
(1) Quarterly information is annualized for comparability with full
year information.