United PanAm Financial Announces Third Quarter 2001 Results
NEWPORT BEACH, Calif.--Oct. 26, 2001--United PanAm Financial Corp. today announced results for its third quarter ended Sept. 30, 2001.For the quarter, the company reported income from continuing operations and net income of $2.1 million, equal to $0.12 per diluted share, contrasted with a loss from continuing operations of $3.3 million, or $0.20 diluted per share, for the same period a year ago.
Interest income for the 2001-third quarter rose 21% to $14.7 million from $12.1 million a year ago. Net interest income totaled $10.1 million, a 32% increase over last year's $7.7 million.
For the nine months ended Sept. 30, 2001, the company reported income from continuing operations and net income of $5.5 million or $0.33 per diluted share, versus a loss from continuing operations of $4.1 million, or $0.25 per diluted share, for the comparable period a year ago. Net interest income, for the first nine months of 2001 increased 29% to $27.8 million from $21.6 million a year earlier.
"The overall economic slowdown during the 3rd quarter and the terrible events of September 11 had a moderate impact on UPFC. While loan origination volume levels were initially impacted by the events of September 11, they have now returned to pre-September 11 levels," said Guillermo Bron, chairman of the board and chief executive officer.
"Management's uncompromising commitment to asset quality and strong controls has maintained our low level of delinquent loans. Charge offs were up for the quarter when compared to last year. However, the increase in charge offs has been offset by lower cost of funds and the corresponding improvement in net interest margin."
"We believe the prospects of our auto finance business are positive and plan to continue to expand our branch network. We opened three new branches during the 3rd quarter, and anticipate opening three more during the 4th quarter. Overall, we expect to open 12 branches during 2001 reaching a total of 40 branches by the end of the year. We plan to continue with our controlled expansion strategy with projected 12 to 14 new branch openings during 2002."
During the third quarter of 2001, the company, through its subsidiaries and divisions, purchased gross auto contracts totaling $58.7 million, compared with $45.3 million in the 2000-third quarter. Gross automobile receivables increased to $202.6 million at Sept. 30, 2001 from $143.0 million in the comparable period a year ago.
Annualized net charge-offs were 4.59% in the nine months ended Sept. 30, 2001 compared with 4.08% in the comparable prior-year period. Total delinquencies as a percentage of net auto contracts outstanding were 0.57% at Sept. 30, 2001 compared with 0.54% at Sept. 30, 2000. During the past 12 months, the company opened 11 automobile finance branches for a total of 37 branches in 21 states.
The company, through its subsidiaries and division, originated $28.2 million in insurance premium finance loans during the third quarter of 2001 compared with the $24.3 million in the third quarter of 2000. The insurance premium finance business, with $38.2 million in loans outstanding at Sept. 30, 2001, also continued to contribute to income from continuing operations.
At Sept. 30, 2001, the company's capital to assets ratio was 11.35% with shareholders' equity totaling $74.1 million. Pan American Bank, FSB, the company's banking subsidiary, continues to be "well-capitalized" at Sept. 30, 2001, under current Office of Thrift Supervision capital regulations.
United PanAm Financial Corp., a diversified specialty finance company, originates and acquires for investment automobile insurance premium finance contracts and retail automobile installments sales contracts. The company's principal operating units include Pan American Bank, FSB, the largest Hispanic-controlled savings association in California, with four retail branch offices in the state and $361.8 million in deposits at Sept. 30, 2001; United Auto Credit Corp. with 38 branch offices in 21 states; and the insurance premium finance division, which through a joint consolidated venture is the largest non-insurance provider of financing for insurance premiums in California.
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 ("SRLA") 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 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,, the reliance of 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.
Note To Editors: Financial data follows.
United PanAm Financial Corp. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Three Months Nine Months
(In thousands, Ended Sept. 30, Ended Sept. 30,
except per share data) 2001 2000 2001 2000
Interest Income
Loans $11,852 $ 8,969 $33,199 $25,024
Securities 2,880 3,103 9,988 6,075
Total interest income 14,732 12,072 43,187 31,099
Interest Expense
Deposits 4,464 3,763 14,295 8,605
Federal Home Loan
Bank advances 71 654 979 890
Other borrowings 86 -- 118 --
Total interest expense 4,621 4,417 15,392 9,495
Net interest income 10,111 7,655 27,795 21,604
Provision for
loan losses 108 30 276 107
Net interest income
after provision for
loan losses 10,003 7,625 27,519 21,497
Non-interest Income
Loss on residual interests
in securitizations -- (5,324) -- (10,324)
Net gain on sales of loans -- 1,607 --
Service charges and fees 164 153 497 460
Loan related charges
and fees 68 51 209 155
Other income 35 33 102 97
Total non-interest
income 267 (5,087) 2,415 (9,612)
Non-interest Expense
Compensation and benefits 4,060 3,343 12,921 9,648
Occupancy 788 646 2,305 1,756
Other 1,915 3,830 5,620 7,051
Total non-interest
expense 6,763 7,819 20,846 18,455
Income (loss) from
continuing operations
before income taxes 3,507 (5,281) 9,088 (6,570)
Income taxes (benefit) 1,369 (1,970) 3,544 (2,436)
Income (loss) from
continuing operations 2,137 (3,311) 5,544 (4,134)
Loss on disposal of
discontinued operations,
net of tax -- -- -- (3,291)
Net income (loss) $2,137 $(3,311) $5,544 $(7,425)
Earnings (loss) per
share-basic:
Continuing operations $ 0.13 $ (0.20) $ 0.34 $ (0.25)
Discontinued operations $ -- $ -- $ -- $ (0.20)
Net income (loss) $ 0.13 $ (0.20) $ 0.34 $ (0.45)
Weighted average shares
outstanding 16,171 16,281 16,164 16,475
Earnings (loss) per share-diluted:
Continuing operations $ 0.12 $ (0.20) $ 0.33 $ (0.25)
Discontinued operations $ -- $ -- $ -- $ (0.20)
Net income (loss) $ 0.12 $ (0.20) $ 0.33 $ (0.45)
Weighted average shares
outstanding 17,860 16,348 16,859 16,602
United PanAm Financial Corp. and Subsidiaries
Consolidated Statements of Financial Condition
(Unaudited)
Sept. 30 Dec. 31
(Dollars in thousands, except share data) 2001 2000
Assets
Cash and due from banks $ 5,088 $ 6,115
Short term investments 175,245 36,477
Cash and cash equivalents 180,333 42,592
Securities available for
sale, at fair value 223,504 223,265
Residual interests in securitizations,
at fair value -- 8,861
Loans, net 224,132 192,368
Loans held for sale 180 712
Premises and equipment, net 1,933 1,591
Federal Home Loan Bank stock, at cost 4,725 3,000
Accrued interest receivable 3,587 814
Real estate owned, net 8 871
Other Asset 14,797 15,904
Total assets $653,199 $489,978
Liabilities and Shareholders' Equity
Deposits $361,846 $348,230
Federal Home Loan Bank advances 94,500 60,000
Other borrowings 108,905 --
Accrued expenses and other liabilities 13,812 12,431
Total liabilities 579,063 420,661
Common stock (no par value):
Authorized, 30,000,000 shares
Issued and outstanding, 15,652,400
and 16,149,650 shares at Sept. 30, 2001
and Dec. 31, 2000, respectively 64,014 65,291
Retained earnings 9,070 3,524
Unrealized gain on securities
available for sale, net 1,052 502
Total shareholders' equity 74,136 69,317
Total liabilities and shareholders'
equity $653,199 $489,978
United PanAm Financial Corp. and Subsidiaries
Selected Financial Data
(Unaudited)
At or For the At or For the
(Dollars in thousands) Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2001 2000 2001 2000
Automobile Finance Data
Gross contracts purchased $ 58,694 $ 45,257 $176,985 $128,273
Net contracts outstanding 202,602 143,018 202,602 143,018
Annualized net charge-offs
to average contracts(1) 5.23% 4.18% 4.59% 4.08%
Delinquencies (% of net contracts)
31-60 days 0.37% 0.36% 0.37% 0.36%
61-90 days 0.11% 0.12% 0.11% 0.12%
90+ days 0.09% 0.06% 0.09% 0.06%
Insurance Premium Finance Data
Loans originated $ 28,204 $ 24,344 $ 77,170 $ 71,173
Loans outstanding at
period end 38,215 30,507 38,215 30,507
Annualized net charge-offs
to average loans(1) 0.95% 0.80% 0.92% 0.84%
Other Data
Return on average assets
from continuing
operations(1) 1.38% (5.32)% 1.62% (2.70)%
Return on average
shareholders' equity
from continuing
operations(1) 11.46% (29.63)% 12.36% (11.76)%
Retail deposits $282,990 $289,639 $282,990 $289,639
Wholesale deposits 78,856 12,868 78,856 12,808
Weighted average interest
rate on deposits 4.49% 5.50% 4.49% 5.50%
Allowance for credit
losses to total loans 7.08% 9.07% 7.08% 9.07%
Consolidated capital to
assets ratio 11.35% 15.90% 11.35% 15.90%
Pan American Bank capital ratios:
Tangible 7.30% 9.63% 7.30% 9.63%
Core 7.30% 9.63% 7.30% 9.63%
Risk-based 16.14% 14.18% 16.14% 14.18%
(1) Quarterly information is annualized for comparability with
full year information.