United PanAm Financial Announces Fourth Quarter 2002 Results
NEWPORT BEACH, Calif.--Jan. 29, 2003--United PanAm Financial Corp. today announced results for its fourth quarter ended Dec. 31, 2002.For the quarter ended Dec. 31, 2002, the company reported net income of $3.5 million, equal to $0.20 per diluted share, compared with net income of $2.2 million, or $0.13 per diluted share for the same period a year ago. This represents a 59% increase in net income between the two periods and a 54% increase in earnings per diluted share.
Net interest income for the fourth quarter of 2002 rose 31% to $14.1 million, from $10.8 million in the fourth quarter of 2001.
For the year ended Dec. 31, 2002, the company reported net income of $12.5 million, or $0.71 per diluted share vs. net income of $7.8 million, or $0.46 per diluted share, for the comparable period a year ago. This represents a 60% increase in net income between the two periods and a 54% increase in earnings per diluted share.
Net interest income for 2002 increased 35% to $52.2 million from $38.6 million a year earlier.
The company purchased $82 million of auto loans during the fourth quarter of 2002, representing a 44% increase over the fourth quarter of 2001. Auto loans outstanding totaled $294.9 million at Dec. 31, 2002, a 38% increase over Dec. 31, 2001. The growth in auto loans is the result of planned expansion of the branch network throughout the country and portfolio growth at the branch level.
During 2002, UPFC opened 14 new auto loan branches, bringing our total to 54 branches in 25 states. The company plans to continue its philosophy of controlled expansion of the auto finance branch network.
Delinquency over 30 days amounted to 0.73% of auto loans at Dec. 31, 2002, compared with 0.79% at Dec. 31, 2001. Delinquency and unsold repossessions over 30 days totaled 1.39% of auto loans at Dec. 31, 2002, equal to Dec. 31, 2001.
The annualized quarterly net charge off rate was 6.69% for the fourth quarter of 2002, compared with 6.77% for the comparable period in 2001.
"This quarter represents our ninth consecutive quarter of increased earnings per share," said Guillermo Bron, chairman. "We are very grateful to our associates for making 2002 another record earnings year for UPFC particularly under a difficult operating environment where depressed values for used cars made it difficult to improve net charge-off ratios."
Bron added, "In spite of these challenges delinquency ratios remain among the lowest in the industry."
UPFC plans to continue the controlled expansion of its auto finance branch network with the anticipated opening of 14 new branches during 2003.
United PanAm Financial, a 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 $468 million in deposits at Dec. 31, 2002, United Auto Credit Corp., with 54 branch offices in 25 states and the insurance premium finance division, which 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 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)
Dec. 31, Dec. 31,
2002 2001
(Dollars in thousands)
Assets
Cash and due from banks $9,964 $5,428
Short term investments 3,590 135,267
Cash and cash equivalents 13,554 140,695
Securities available for sale, at fair value 603,268 284,837
Loans 331,257 253,750
Less allowance for loan losses (23,179) (17,302)
Loans, net 308,078 236,448
Loans held for sale -- 194
Premises and equipment, net 2,700 2,124
Federal Home Loan Bank stock, at cost 1,675 6,500
Accrued interest receivable 1,880 4,029
Other assets 20,131 14,746
Total assets $951,286 $689,573
Liabilities and Shareholders' Equity
Deposits $468,458 $357,350
Federal Home Loan Bank advances -- 130,000
Repurchase agreements 384,624 114,776
Accrued expenses and other liabilities 8,545 11,781
Total liabilities 861,627 613,907
Common stock (no par value):
Authorized, 30 million shares
Issued and outstanding, 15,798,338 shares at
Dec. 31, 2002, and 15,571,400 at Dec. 31, 2001 64,957 63,630
Retained earnings 23,814 11,287
Unrealized gain on securities available for
sale, net 888 749
Total shareholders' equity 89,659 75,666
Total liabilities and shareholders' equity $951,286 $689,573
United PanAm Financial Corp. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Three Months Ended 12 Months Ended
(In thousands, except per-share data) Dec. 31, Dec. 31,
2002 2001 2002 2001
Interest Income
Loans $15,816 $12,449 $58,013 $45,648
Securities 3,746 2,516 13,344 12,504
Total interest income 19,562 14,965 71,357 58,152
Interest Expense
Deposits 3,826 3,824 13,676 18,119
Other borrowings 1,626 306 5,474 1,403
Total interest expense 5,452 4,130 19,150 19,522
Net interest income 14,110 10,835 52,207 38,630
Provision for loan losses 404 339 638 615
Net interest income after
provision for loan
losses 13,706 10,496 51,569 38,015
Non-interest Income
Net gain on sale of securities 220 -- 491 --
Net gain on sales of loans -- -- -- 1,607
Service charges and fees 200 183 787 680
Loan related charges and fees 75 71 306 280
Other income 205 35 296 137
Total non-interest income 700 289 1,880 2,704
Non-interest Expense
Compensation and benefits 5,548 4,214 20,474 17,135
Occupancy 1,060 783 3,769 3,088
Other 2,281 2,149 9,111 7,769
Total non-interest expense 8,889 7,146 33,354 27,992
Income before income taxes and
cumulative effect of change
in accounting principle 5,517 3,639 20,095 12,727
Income taxes 2,015 1,420 7,674 4,964
Income before cumulative effect of
change in accounting principle 3,502 2,219 12,421 7,763
Cumulative effect of change in
accounting principle net of tax -- -- 106 --
Net income $3,502 $2,219 $12,527 $7,763
Earnings per share-basic:
Income before cumulative effect of
change in accounting principle $0.22 $0.14 $0.79 $0.48
Cumulative effect of change in
accounting principle -- -- 0.01 --
Net income $0.22 $0.14 $0.80 $0.48
Weighted average shares outstanding 15,771 15,577 15,630 16,017
Earnings per share-diluted:
Income before cumulative effect of
change in accounting principle $0.20 $0.13 $0.70 $0.46
Cumulative effect of change in
accounting principle -- -- 0.01 --
Net income $0.20 $0.13 $0.71 $0.46
Weighted average shares outstanding 17,687 17,279 17,588 16,931
Selected Financial Data
(Unaudited)
At or for the At or for the
(Dollars in thousands) Three Months Ended 12 Months Ended
Dec. 31, Dec. 31,
2002 2001 2002 2001
Automobile Finance Data
Gross contracts purchased $81,911 $57,385 $314,644 $234,370
Contracts outstanding 294,855 214,020 294,855 214,020
Allowance for loan losses (22,713) (16,756) (22,713) (16,756)
Annualized net charge-offs to
average contracts (a) 6.69% 6.77% 6.20% 5.23%
Delinquencies (% of net contracts)
31-60 days 0.44% 0.47% 0.44% 0.47%
61-90 days 0.20% 0.22% 0.20% 0.22%
90+ days 0.09% 0.11% 0.09% 0.11%
Insurance Premium Finance Data
Loans originated $22,927 $24,901 $106,948 $102,071
Loans outstanding at period end 36,322 39,632 36,322 39,632
Allowance for loan losses (462) (495) (462) (495)
Annualized net charge-offs to
average loans (a) 0.52% 0.74% 0.72% 0.81%
Other Data
Return on average assets (a) 1.46% 1.78% 1.57% 1.61%
Return on average shareholders'
equity (a) 15.89% 11.85% 15.37% 10.61%
Retail deposits $312,731 $278,000 $312,731 $278,000
Wholesale deposits 155,727 79,350 155,727 79,350
Weighted average interest
rate on deposits 3.22% 4.11% 3.22% 4.11%
Allowance for credit losses to
total loans 7.00% 6.88% 7.00% 6.88%
Consolidated capital to assets
ratio 9.43% 10.98% 9.43% 10.98%
Pan American Bank capital ratios:
Tangible 8.26% 7.23% 8.26% 7.23%
Core 8.26% 7.23% 8.26% 7.23%
Risk-based 18.48% 15.97% 18.48% 15.97%
(a) Quarterly information is annualized for comparability with full
year information.