United PanAm Financial Announces Fourth Quarter 2004 Results
NEWPORT BEACH, Calif.--March 30, 2005--United PanAm Financial Corp. today announced results for its fourth quarter ended December 31, 2004.For the quarter ended December 31, 2004, the Company reported net income from continuing operations of $5.4 million, equal to $0.30 per diluted share, a 135% increase compared to net income from continuing operations of $2.3 million, or $0.13 per diluted share for the same period a year ago.
Net interest income, after provision for loan loss, for the fourth quarter of 2004 rose 49% to $21.6 million from $14.5 million in the fourth quarter of 2003.
For the year ended December 31, 2004, the Company reported net income of $23.7 million, equal to $1.31 per diluted share, a 66% increase compared to net income of $13.9 million or $0.79 per diluted share for 2003.
The Company reported net income from continuing operations of $19.9 million for 2004, or $1.10 per diluted share, a 71% increase compared to net income from continuing operations of $11.7 million, or $0.66 per diluted share for 2003.
Fully diluted earnings per share from continuing operations for the last two years can be summarized as follows:
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year
2004 $0.24 $0.35 $0.23 $0.30 $1.10
2003 $0.13 $0.31 $0.10 $0.13 $0.66
The Company purchased $139.2 million of gross auto loans during the fourth quarter of 2004, representing a 24% increase over the fourth quarter of 2003. Auto loans outstanding totaled $524.2 million at December 31, 2004, a 31% increase over December 31, 2003. 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 2004, the Company opened 17 new auto loan branches bringing our total to 87 branches in 28 states. The Company plans to continue its philosophy of controlled expansion of the auto finance branch network and expects to open 20 new loan branches in 2005.
Delinquencies over 30 days and total repossessions decreased to 1.36% of auto loans at December 31, 2004, compared with 1.41% at December 31, 2003. For the year 2004 the net charge off rate decreased to 5.24%, compared with 5.67% for the year 2003.
The annualized quarterly net charge-off rate decreased to 5.75% for the fourth quarter of 2004, compared with 6.03% for the comparable period in 2003.
"As a result of our controlled growth strategy, our automobile financing receivables continued to grow during 2004 at over 30%, while at the same time experiencing lower operational costs and improved quality. Both charge-offs and delinquencies (plus total repossessions) have declined from last year," said Guillermo Bron, Chairman.
United PanAm Financial Corp. originates and acquires for investment retail automobile installment sales contracts through its principal operating unit United Auto Credit Corporation with 87 branch offices in 28 states.
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 our recent shift of the funding source of our business; our dependence on securitizations; our need for substantial liquidity to run our business; loans we made to credit-impaired borrowers; reliance on operational systems and controls and key employees; competitive pressures which we face; rapid growth of our businesses; fluctuations in market rates of interest; general economic conditions;, the effects of accounting changes 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.
Editors Note: Selected financial data follows.
United PanAm Financial Corp. and Subsidiaries
Consolidated Statements of Financial Condition
December 31, December 31,
(Dollars in thousands) 2004 2003
As Restated
Assets
Cash and due from banks $4,237 $8,376
Short term investments -- 5,833
Cash and cash equivalents 4,237 14,209
Restricted cash 36,729 --
Securities available for sale, at fair value 788,090 1,202,444
Loans 524,170 397,417
Less unearned discount (24,827) (14,932)
Less allowance for loan losses (25,593) (24,982)
Loans, net 473,750 357,503
Premises and equipment, net 3,519 3,163
Accrued interest receivable 6,901 5,893
Other assets 29,601 27,692
Assets of discontinued operations 72,080 52,535
Total assets $1,414,907 $1,663,439
Liabilities and Shareholders' Equity
Warehouse line of credit $101,776 $--
Securities notes payable 352,564 --
Repurchase Agreements 745,295 1,052,205
Accrued expenses and other liabilities 8,793 6,795
Subordinated debenture 10,310 10,000
Liabilities of discontinued operations -
deposits held for sale 71,916 498,389
Total liabilities 1,290,654 1,567,389
Common stock (no par value)
Authorized, 30,000,000 shares
Issued and outstanding, 16,526,358 at
December 31, 2004 and 16,100,204 at
December 31, 2003 70,332 66,109
Retained earnings 53,517 29,812
Accumulated other comprehensive income, net
of tax 404 129
Total shareholders' equity 124,253 96,050
Total liabilities and shareholders'
equity $1,414,907 $1,663,439
United PanAm Financial Corp. and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share Three Months Twelve Months
data) Ended December 31, Ended December 31,
(unaudited)
2004 2003 2004 2003
Interest Income
Loans $32,258 $20,877 $117,270 $81,197
Securities 4,917 4,758 19,959 16,597
Total interest income 37,175 25,635 137,229 97,794
Interest Expense
Deposits 949 2,736 10,605 12,049
Securitization/warehouse
credit line 4,231 -- 4,578 --
Repurchase Agreements 2,282 2,832 11,224 9,098
Subordinated debenture 110 170 462 170
Total interest expense 7,572 5,738 26,869 21,317
Net interest income 29,603 19,897 110,360 76,477
Provision for loan losses 8,045 5,380 25,516 17,771
Net interest income
after provision for
loan losses 21,558 14,517 84,844 58,706
Non-interest Income
Net gain on sale of securities 317 104 1,010 506
Service charges and fees 99 68 438 333
Loan related charges and fees 634 76 518 307
Other income 44 414 1,091 954
Total non-interest income 1,094 662 3,057 2,100
Non-interest Expense
Compensation and benefits 8,988 7,288 33,004 26,538
Occupancy 1,233 1,219 5,130 4,485
Market loss - derivative (183) -- 2,185 --
Other 3,999 2,814 14,582 10,191
Total non-interest expense 14,037 11,321 54,901 41,214
Income from continuing
operations before income taxes 8,615 3,858 33,000 19,592
Income taxes 3,174 1,558 13,078 7,924
Income from continuing operations 5,441 2,300 19,922 11,668
Income from discontinued
operations, net of tax (305) 452 3,783 2,183
Net income $5,136 $2,752 $23,705 $13,851
Earnings per share-basic:
Continuing operations $0.33 $0.14 $1.23 $0.73
Discontinued operations (0.02) 0.03 0.23 0.14
Net income $0.31 $0.17 $1.46 $0.87
Weighted average shares
outstanding 16,399 16,020 16,209 15,914
Earnings per share-diluted:
Continuing operations $0.30 $0.13 $1.10 $0.66
Discontinued operations (0.02) 0.02 0.21 0.13
Net income $0.28 $0.15 $1.31 $0.79
Weighted average shares
outstanding 18,135 18,008 18,069 17,572
Selected Financial Data
(Unaudited)
(Dollars in thousands) At or For the At or For the
Three Months Ended Twelve Months Ended
December December December December
31, 31, 31, 31,
2004 2003 2004 2003
As As
restated restated
Automobile Finance Data
Gross contracts purchased $139,192 $112,203 $573,926 $442,229
Contracts outstanding, net of
unearned finance charges 524,165 399,700 524,165 399,700
Allowance for credit losses to
total loans 5.13% 5.99% 5.13% 5.99%
Unearned discount on loans to
total loans 4.45% 3.60% 4.45% 3.60%
Annualized net charge-offs to
average contracts(a) 5.75% 6.03% 5.24% 5.67%
Delinquencies (% of net contracts)
31-60 days 0.48% 0.49% 0.48% 0.49%
61-90 days 0.16% 0.17% 0.16% 0.17%
90+ days 0.08% 0.10% 0.08% 0.10%
Repossessed assets 0.64% 0.65% 0.64% 0.65%
Other Data
Return on average assets from
continuing operations(a) 1.47% 0.58% 1.25% 0.87%
Return on average shareholders'
equity from continuing
operations (a) 18.26% 9.76% 17.94% 12.43%
Retail deposits $71,916 $344,025 $71,916 $344,025
Brokered deposits -- 154,364 -- 154,364
Weighted average interest
rate on deposits 2.73% 2.59% 2.73% 2.59%
Consolidated capital to assets
ratio 8.78% 5.77% 8.78% 5.77%
(a) Quarterly information is annualized for comparability with full
year information.