United PanAm Financial Announces First Quarter 2002 Results
NEWPORT BEACH, Calif.--April 24, 2002--United PanAm Financial Corp. today announced results for its first quarter ended March 31, 2002.For the quarter ended March 31, 2002, the company reported net income of $2.7 million, equal to $0.15 per diluted share, compared with net income of $1.5 million, or $0.10 per diluted share for the same period a year ago.
Net interest income for the 2002 first quarter rose 39% to $11.7 million from $8.4 million in the first quarter of 2001.
The company purchased $72 million of auto loans during the first quarter 2002. Auto loans outstanding totaled $233.2 million at March 31, 2002; a 35% increase over March 31, 2001 outstandings.
The growth in auto loans is the result of planned expansion of the branch network throughout the country. UPFC opened two new branches during the first quarter for a total of 42 branches in 23 states. The company plans to continue its philosophy of controlled expansion of the auto finance branch network with the anticipated opening of a total of 14 new branches during 2002.
Net charge-offs during the first quarter of 2002 amounted to 6.63% (annualized) of average auto loans outstanding. This compares with 6.77% during the fourth quarter of 2001 and 4.39% during the first quarter of 2001.
Delinquency more than 30 days amounted to 0.6% of auto loans at March 31, 2002. Delinquency and total repossessions more than 30 days amounted to 1.1% of auto loans at March 31, 2002. This compares with 1.4% at Dec. 31, 2001 and 0.8% at March 31, 2001.
"The improving economy is having a beneficial impact in our company. Auto loan originations continue to increase while delinquency and total repossessions over 30 days decreased from fourth quarter levels," said Guillermo Bron, chairman.
"Yet we continue to be adversely impacted by the effects of last year's events and the decline in value of used cars. Charge-offs during the quarter were much higher than last year's comparable period. We are experiencing a gradual decline in severity as the used cars inventory oversupply is being absorbed throughout the system."
United PanAm Financial, a diversified specialty finance company, originates and acquires for investment retail automobile installment sales contracts and insurance premium finance contracts. Its principal operating units include Pan American Bank, FSB, the largest Hispanic-controlled savings association in California, with $373 million in deposits at March 31, 2002; United Auto Credit with 42 branch offices in 23 states; and the insurance premium finance division, which through a joint agreement 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 ("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 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 Operations
(Unaudited)
Three Months
(In thousands, except per share data) Ended March 31,
2002 2001
Interest Income
Loans $ 13,037 $ 10,290
Short-term investments 2,659 3,640
Total interest income 15,696 13,930
Interest Expense
Deposits 3,232 5,020
Repurchase Agreements 193 --
Federal Home Loan Bank advances 571 515
Total interest expense 3,996 5,535
Net interest income 11,700 8,395
Provision for loan losses 85 44
Net interest income after
provision for loan losses 11,615 8,351
Non-interest Income
Services charges and fees 191 165
Loan-related charges and fees 85 75
Gain on sale of securities 61 --
Gain on sale of loans -- 357
Other income 29 33
Total non-interest income 366 630
Non-interest Expense
Compensation and benefits 4,810 3,709
Occupancy 874 764
Other 2,195 1,979
Total non-interest expense 7,879 6,452
Income before income taxes and cumulative
effect of change in accounting principles 4,102 2,529
Income taxes 1,541 985
Income before income taxes and cumulative
effect of change in accounting principles $ 2,561 $ 1,544
Cumulative effect of change in accounting
principle, net of tax 106 --
Net Income $ 2,667 $ 1,544
Earnings per share -- basic:
Net income before income taxes and
cumulative effect of change in accounting
principles $ 0.16 $ 0.10
Cumulative effect of change in accounting
principle 0.01 --
Net Income $ 0.17 $ 0.10
Weighted average shares outstanding 15,571 16,153
Earnings per share -- diluted:
Net income before income taxes and
cumulative effect of change in accounting
principles $ 0.15 $ 0.10
Cumulative effect of change in accounting
principle -- --
Net Income $ 0.15 $ 0.10
Weighted average shares outstanding 17,338 16,227
United PanAm Financial Corp. and Subsidiaries
Consolidated Statements of Financial Condition
(Unaudited)
March 31, Dec. 31,
(Dollars in thousands) 2002 2001
Assets
Cash and due from banks $ 8,236 $ 5,428
Short-term investments 44,655 135,267
Cash and cash equivalents 52,891 140,695
Securities available for sale, at fair
value 402,060 284,837
Loans, net 255,503 236,448
Loans held for sale 119 194
Premises and equipment, net 2,300 2,124
Federal Home Loan Bank stock, at cost 6,581 6,500
Accrued interest receivable 4,491 4,029
Other assets 14,287 14,746
Total assets $738,232 $689,573
Liabilities and Shareholders' Equity
Deposits $372,732 $357,350
Federal Home Loan Bank advances 104,000 130,000
Repurchase Agreements 171,466 114,776
Accrued expenses and other liabilities 12,264 11,781
Total liabilities 660,462 613,907
Common stock (no par value):
Authorized, 30,000,000 shares
issued and outstanding, 16,158,650
and 16,149,650 shares at March 31,
2002 and Dec. 31, 2001, respectively 63,630 63,630
Retained earnings 13,954 11,287
Unrealized gain on securities
available for sale, net 186 749
Total shareholders' equity 77,770 75,666
Total liabilities and shareholders'
equity $738,232 $689,573
United PanAm Financial Corp. and Subsidiaries
Selected Financial Data
(Unaudited)
At or For the
Three Months Ended
(Dollars in thousands) March 31, March 31,
2002 2001
Automobile Finance Data
Gross contracts purchased $ 71,875 $ 57,743
Net contracts outstanding 233,196 172,297
Annualized net charge-offs to average
contracts (a) 6.63% 4.39%
Delinquencies (% of net contracts)
31-60 days 0.40% 0.28%
61-90 days 0.13% 0.09%
90+ days 0.11% 0.07%
Insurance Premium Finance Data
Loans originated $ 28,210 $ 24,269
Loans outstanding at period end 40,639 34,183
Annualized net charge-offs to average
loans (a) 0.72% 0.61%
Other Data
Return on average assets (a) 1.79% 1.25%
Return on average shareholders' equity (a) 14.07% 8.78%
Retail deposits $272,758 $297,712
Wholesale deposits 99,974 21,121
Weighted average interest rate on
deposits 3.43% 5.57%
Allowance for credit losses to total loans 6.77% 7.82%
Consolidated capital to assets ratio 10.54% 14.27%
Pan American Bank capital ratios:
Tangible 9.29% 8.86%
Core 9.29% 8.86%
Risk-based 20.34% 18.66%
(a) Quarterly information is annualized for comparability with
full-year information.