United PanAm Financial Announces Second Quarter 2001 Results
NEWPORT BEACH, Calif.--July 23, 2001--United PanAm Financial Corp. today announced results for its second quarter ended June 30, 2001.For the quarter, the company reported income from continuing operations and net income of $1.9 million, equal to $0.11 per diluted share, contrasted with a loss from continuing operations of $1.8 million, or $0.11 per share, for the same period a year ago.
Included in the calculations of net income in the current second quarter was a one-time pre-tax charge of $1.4 million for compensation expense related to the conversion of the option plan of the United Auto Credit Corp. subsidiary to options of United PanAm Financial.
Net income also reflects a $1.3 million gain on the sale of loans representing substantially all of the remaining company's mortgage related assets. Excluding those non-recurring items, net income would have been $1.9 million or $0.11 per diluted share for the three-month period ended June 30, 2001.
Interest income for the 2001-second quarter rose 36.5% to $14.5 million from $10.6 million a year ago. Net interest income totaled $9.3 million, a 27.8% increase over last year's $7.3 million.
For the six months ended June 30, 2001, the company reported income from continuing operations and net income of $3.4 million or $0.21 per diluted share, versus a loss from continuing operations of $823,000, or $0.05 per share, for the comparable period a year ago.
Interest income for the first six months of 2001 advanced 49.5% to $28.5 million from $19 million a year ago. Net interest income increased 26.8% to $17.7 million from $13.9 million a year earlier.
"With the sale of the remaining mortgage related assets we have effectively closed the book on the mortgage operations. We are excited about the gains achieved in both our automobile finance and insurance premium finance operations," said Guillermo Bron, chairman of the board and chief executive officer.
"Our controlled expansion strategy continues to attain quality growth while maintaining low charge-offs and delinquencies."
During the second quarter of 2001, the company, through its subsidiaries and divisions, purchased gross auto contracts totaling $59.5 million, compared with $42.7 million in the 2000-second quarter. Gross automobile receivables increased to $209.4 million at June 30, 2001 from $152.2 million in the comparable period a year ago.
Annualized net charge-offs were 4.32% in the six months ended June 30, 2001 compared with 4.03% in the comparable prior-year period. Total delinquencies as a percentage of net auto contracts outstanding were 0.57% at June 30, 2001 compared with 0.44% at June 30, 2000. During the past year, the company opened eight automobile finance branches for a total of 32 branches in 14 states.
The company, through its subsidiaries and divisions, originated $24.7 million in insurance premium finance loans during the current second quarter. This compares with the $21.7 million in the prior-year quarter. The insurance premium finance business, with $35.1 million in loans outstanding at June 30, 2001, also continued to contribute to income from continuing operations.
At June 30, 2001, the company's capital to assets ratio was 12.44% with shareholders' equity totaling $74.4 million. Pan American Bank, FSB, the company's banking subsidiary, continues to be "well-capitalized" at June 30, 2001, under current Office of Thrift Supervision capital regulations.
United PanAm Financial, a diversified specialty finance company, originates and acquires for investment automobile insurance premium finance contracts and retail automobile installments sales contracts.
United PanAm Financial Corp. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
(Dollars in thousands, except per share data)
Three Months Six Months
Ended June 30, Ended June 30,
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2001 2000 2001 2000
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Interest Income
Loans $ 11,057 $ 8,380 $ 21,346 $ 16,055
Securities 3,468 2,261 7,108 2,972
Total interest income 14,525 10,641 28,454 19,027
Interest Expense
Deposits 4,811 3,139 9,831 4,842
Federal Home Loan Bank
advances 393 236 907 236
Other borrowings 32 -- 32 --
Total interest expense 5,236 3,375 10,770 5,078
Net interest income 9,289 7,266 17,684 13,949
Provision for loan losses 124 5 168 77
Net interest income after
provision for loan losses 9,165 7,261 17,516 13,872
Non-interest Income
Loss on residual interests in
securitizations -- (5,000) -- (5,000)
Net gain on sales of loan 1,250 -- 1,607 --
Service charges and fees 168 154 333 307
Loan related charges and fees 66 50 141 104
Other income 34 32 67 64
Total non-interest income 1,518 (4,764) 2,148 (4,525)
Non-interest Expense
Compensation and benefits 5,152 3,208 8,861 6,305
Occupancy 753 577 1,517 1,110
Other 1,726 1,695 3,705 3,221
Total non-interest expense 7,631 5,480 14,083 10,636
Income (loss) from
continuing operations
before income taxes 3,052 (2,983) 5,581 (1,289)
Income taxes (benefit) 1,190 (1,158) 2,175 (466)
Income (loss) from continuing
operations 1,862 (1,825) 3,406 (823)
Loss on disposal of discontinued
operations, net of tax -- (3,291) -- (3,291)
Net income (loss) $ 1,862 $ (5,116) $ 3,406 $ (4,114)
Earnings (loss) per share -- basic:
Continuing operations $ 0.12 $ ( 0.11) $ 0.21 $ ( 0.05)
Discontinued operations -- $ ( 0.20) -- $ ( 0.20)
Net income (loss) $ 0.12 $ ( 0.31) $ 0.21 $ ( 0.25)
Weighted average shares
outstanding 16,169 16,164 16,161 16,572
Earnings (loss) per share -- diluted:
Continuing operations $ 0.11 $ ( 0.11) $ 0.21 $ ( 0.05)
Discontinued operations -- $ ( 0.20) -- $ ( 0.20)
Net income (loss) $ 0.11 $ ( 0.31) $ 0.21 $ ( 0.25)
Weighted average shares
outstanding 17,380 16,687 16,613 16,724
United PanAm Financial Corp. and Subsidiaries
Consolidated Statements of Financial Condition
(Unaudited)
(Dollars in thousands, except per share data)
June 30 December 31
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2001 2000
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Assets
Cash and due from banks $ 8,790 $ 6,115
Short term investments 168,243 36,477
Cash and cash equivalents 177,033 42,592
Securities available for sale,
at fair value 189,657 223,265
Residual interests in securitizations,
at fair value -- 8,861
Loans, net 208,078 192,368
Loans held for sale 253 712
Premises and equipment, net 1,823 1,591
Federal Home Loan Bank stock, at cost 3,600 3,000
Accrued interest receivable 3,099 814
Real estate owned, net 47 871
Other Assets 14,205 15,904
Total assets $ 597,795 $ 489,978
Liabilities and Shareholders' Equity
Deposits $ 383,109 $ 348,230
Federal Home Loan Bank advances 57,000 60,000
Other borrowings 74,183 --
Accrued expenses and other liabilities 9,101 12,431
Total liabilities 523,393 420,661
Common stock (no par value):
Authorized, 30 million shares issued
and outstanding, 16,188,650 and
16,149,650 shares at June 30, 2001
and Dec. 31, 2000, respectively 66,684 65,291
Retained earnings 6,930 3,524
Unrealized gain on securities available
for sale, net 788 502
Total shareholders' equity 74,402 69,317
Total liabilities and shareholders' equity $ 597,795 $ 489,978
United PanAm Financial Corp. and Subsidiaries
Selected Financial Data
(Unaudited)
(Dollars in thousands)
At or For the At or For the
Three Months Ended Six Months Ended
---------------------------------------
June 30, June 30, June 30, June 30,
2001 2000 2001 2000
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Automobile Finance Data
Gross contracts purchased $ 59,548 $ 42,688 $ 117,291 $ 83,016
Net contracts outstanding 188,436 130,777 188,436 130,777
Annualized net charge-offs
to average contracts(a) 4.26% 4.06% 4.32% 4.03%
Delinquencies (% of net contracts)
31-60 days 0.38% 0.31% 0.38% 0.31%
61-90 days 0.11% 0.08% 0.11% 0.08%
90+ days 0.08% 0.05% 0.08% 0.05%
Insurance Premium Finance Data
Loans originated $ 24,697 $ 21,744 $ 48,966 $ 46,767
Loans outstanding at period
end 35,072 29,384 35,072 29,384
Annualized net charge-offs
to average loans(a) 1.32% 0.86% 1.06% 1.18%
Other Data
Return on average assets from
continuing operations(a) 1.25% (2.15)% 1.28% (0.57)%
Return on average shareholders'
equity from continuing
operations(a) 8.78% (9.57)% 9.52% (2.16)%
Retail deposits $ 286,944 $ 283,715 $ 286,944 $ 283,715
Wholesale deposits 96,165 14,364 96,165 14,364
Weighted average interest
rate on deposits 5.04% 5.39% 5.04% 5.39%
Allowance for credit losses
to total loans 7.88% 10.07% 7.88% 10.07%
Consolidated capital to
assets ratio 12.44% 17.11% 12.44% 17.11%
Pan American Bank capital ratios:
Tangible 7.66% 10.03% 7.66% 10.03%
Core 7.66% 10.03% 7.66% 10.03%
Risk-based 17.65% 12.22% 17.65% 12.22%
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(a) Quarterly information is annualized for comparability with
full year information.