United PanAm Financial Corp. Announces First Quarter 2005 Results
NEWPORT BEACH, Calif.--May 2, 2005--United PanAm Financial Corp. today announced results for its first quarter ended March 31, 2005.For the quarter ended March 31, 2005, the company reported income of $6.6 million from continuing operations, compared to income of $4.2 million for the same period a year ago for a 58% increase over 2004. The results for the first quarter of 2005 included a significant amount for audit and accounting fees related to the re-audit of the company's consolidated financial statements for the years ended Dec. 3, 20041, 2002 and 2003, and a significant amount of gain on sale of securities. On a diluted share basis, the company reported income of $0.36 per diluted share from continuing operations for the first quarter of 2005 compared to $0.24 per diluted share for the same period during 2004, for a 50% increase.
Net interest income for the first quarter of 2005 rose 28% to $31.1 million from $24.4 million in the first quarter of 2004.
The company purchased $121 million of net auto loans during the first quarter of 2005, representing a 26% increase over the first quarter of 2004. Auto loans outstanding totaled $570.5 million at March 31, 2005; a 30% increase over March 31, 2004. The growth in auto loans is the result of the planned expansion of the branch network and portfolio growth at the branch level. During the first quarter of 2005, the company opened five new auto loan branches bringing our total to 92 branches in 29 states. The company intends to continue its philosophy of controlled expansion of the auto finance branch network, with the expectation of opening up to 15 additional new branches before year-end.
Delinquency over 30 days amounted to 0.39% of outstanding auto loans at March 31, 2005, compared with 0.48% at March 31, 2004. Delinquency and total repossessions over 30 days amounted to 0.73% of outstanding auto loans at March 31, 2005, compared with 0.84% at March 31, 2004.
The annualized quarterly net charge off rate was 4.71% for the first quarter of 2005, compared with 5.53% for the comparable 2004 period.
"The first quarter of 2005 was a record quarter for the company with auto receivables continuing the controlled growth of 30% in outstandings, while portfolio quality continued to improve, as indicated by the lower delinquency and losses," said Guillermo Bron, chairman of the board of directors. "Also, during the first quarter of 2005, we completed the exit of the federal thrift charter of Pan American Bank, FSB, a wholly owned subsidiary of the company, with the final dissolution of the charter effective February 11, 2005."
United PanAm Financial Corp., a specialty finance company, originates and acquires for investment retail automobile installment sales contracts through its principal operating unit United Auto Credit Corp. with 92 branch offices in 29 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
(Unaudited)
March 31, Dec. 31,
(Dollars in thousands) 2005 2004
Assets
Cash and due from banks $4,555 $4,237
Short term investments 13,899 --
Cash and cash equivalents 18,454 4,237
Restricted cash 45,872 36,729
Securities available for sale, at fair
value 444,251 788,090
Loans 574,933 528,765
Less unearned finance charges (4,419) (4,595)
Less unearned discount (27,889) (24,827)
Less allowance for loan losses (24,980) (25,593)
Loans, net 517,645 473,750
Premises and equipment, net 3,544 3,519
Accrued interest receivable 6,851 6,901
Other assets 24,967 29,601
Assets of discontinued operations 92 72,080
Total assets $1,061,676 $1,414,907
Liabilities and Shareholders' Equity
Warehouse line of credit $189,016 $101,776
Securities notes payable 292,961 352,564
Repurchase agreements 431,780 745,295
Accrued expenses and other liabilities 6,801 8,793
Junior subordinated debentures/trust
preferred securities 10,310 10,310
Liabilities of discontinued operations --
deposits held for sale -- 71,916
Total liabilities 930,868 1,290,654
Common stock (no par value):
Authorized, 30,000,000 shares
issued and outstanding, 16,560,681
at March 31, 2005, and 16,525,832
at Dec. 31, 2004 70,686 70,332
Retained earnings 59,807 53,517
Unrealized gain on securities available
for sale, net 315 404
Total shareholders' equity 130,808 124,253
Total liabilities and shareholders'
equity $1,061,676 $1,414,907
United PanAm Financial Corp. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data) Three Months
Ended March 31,
2005 2004
(As Restated)
Interest Income
Loans $34,666 $26,349
Short term investments 4,407 4,204
Total interest income 39,073 30,553
Interest Expense
Securitized borrowings 2,898 --
Warehouse credit lines 1,374 --
Repurchase agreements 3,547 2,859
Deposits -- 3,217
Junior subordinated debentures 143 120
Total interest expense 7,962 6,196
Net interest income 31,111 24,357
Provision for loan losses 5,713 5,859
Net interest income after provision
for loan losses 25,398 18,498
Non-interest Income
Services charges and fees -- 140
Loan related charges and fees 116 312
Gain on sale of securities 1,648 --
Other income 44 439
Total non-interest income 1,808 891
Non-interest Expense
Compensation and benefits 9,529 7,592
Occupancy 945 1,237
Other 5,536 3,517
Total non-interest expense 16,010 12,346
Income from continuing operations before
income taxes 11,196 7,043
Income taxes 4,574 2,840
Income from continuing operations 6,622 4,203
Income (loss) from discontinued
operations, net of tax (332) 428
Net Income $6,290 $4,631
Earnings per share - basic:
Continuing operations $0.40 $0.26
Discontinued operations (0.02) 0.03
Net income $0.38 $0.29
Weighted average shares outstanding 16,538 15,868
Earnings per share - diluted:
Continuing operations $0.36 $0.24
Discontinued operations (0.02) 0.02
Net Income $0.34 $0.26
Weighted average shares outstanding 18,385 17,796
United PanAm Financial Corp. and Subsidiaries
Selected Financial Data
(Unaudited)
(Dollars and shares in thousands) At or For the
Three Months Ended
March 31, March 31,
2005 2004
Automobile Finance Data
Contracts purchased $120,630 $95,810
Contracts outstanding $570,514 $438,364
Allowance for credit losses to contracts
less unearned discount 4.68% 5.98%
Unearned discount to outstanding
contracts 4.88% 4.13%
Annualized net charge-offs to average
contracts (a) 4.71% 5.53%
Delinquencies (% of net contracts)
31-60 days 0.24% 0.32%
61-90 days 0.09% 0.09%
90+ days 0.06% 0.07%
Other Data
Return on average assets (a) 2.21% 1.13%
Return on average shareholder equity (a) 19.74% 19.04%
Consolidated capital to assets ratio 12.32% 6.14%
Weighted average shares outstanding 16,538 15,868
Additional shares included for fully
diluted calculations 1,847 1,928
Number of shares used in fully diluted
calculations 18,385 17,796
(a) Quarterly information is annualized for comparability with full
year information