United PanAm Financial Corp. Announces Second Quarter 2005 Results
NEWPORT BEACH, Calif.--July 22, 2005--United PanAm Financial Corp. today announced results for its second quarter ended June 30, 2005.For the quarter ended June 30, 2005 the Company reported income of $7.0 million from continuing operations, compared to income of $6.2 million for the same period a year ago. The Company reported income of $0.38 per diluted share from continuing operations for the second quarter of 2005 compared to $0.35 per diluted share for the same period during 2004.
Net interest income for the second quarter of 2005 rose 25% to $33.7 million from $27.0 million in the second quarter of 2004.
For the six months ended June 30, 2005, the Company reported net income of $13.7 million from continuing operations, compared to net income from continuing operations of $10.4 million for the same period a year ago, for a 32% increase over 2004. The Company reported income of $0.74 per diluted share for the six months ended June 30, 2005, compared to $0.58 per diluted share for the same period in 2004.
Net interest income for the first six months of 2005 increased 26% to $64.8 million from $51.3 million for the first six months of 2004.
The Company purchased $240.1 million of net auto loans during the first 6 months of 2005, compared with $185.4 million for the same period in 2004, representing a 30% increase. Auto loans outstanding totaled $616.2 million at June 30, 2005, compared with $473.8 million at June 30, 2004, for 30% increase. 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 second quarter of 2005, the Company opened 5 new auto loan branches bringing our total to 97 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 10 additional new branches before year-end.
Delinquency over 30 days amounted to 0.52% of outstanding auto loans at June 30, 2005 compared with 0.64% at June 30, 2004. Delinquency and total repossessions over 30 days amounted to 0.92% of outstanding auto loans at June 30, 2005, compared with 1.01% at June 30, 2004.
The annualized quarterly net charge-off rate was 3.68% for the second quarter of 2005, compared with 4.60% for the comparable 2004 period.
"The second quarter of 2005 showed continuing controlled growth in auto receivables of 30% in outstanding loans while the portfolio continued to display low delinquency and losses," said Guillermo Bron, Chairman of the Board of Directors. "Also, during the second quarter of 2005, we completed our second securitization of auto loans totaling $195 million."
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 Corporation with 97 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: Three pages of selected financial data follows.
United PanAm Financial Corp. and Subsidiaries
Consolidated Statements of Financial Condition
(Unaudited)
June 30, December 31,
(Dollars in thousands) 2005 2004
---------- ----------
Assets
Cash and due from banks $ 9,512 $ 4,237
Short term investments 9,999 ---
---------- ----------
Cash and cash equivalents 19,511 4,237
Restricted cash 49,016 36,729
Securities available for sale, at fair value 418,419 788,090
Loans 620,370 528,765
Less unearned finance charges (4,194) (4,595)
Less unearned discount (30,268) (24,827)
Less allowance for loan losses (26,374) (25,593)
---------- ----------
Loans, net 559,534 473,750
Premises and equipment, net 3,575 3,519
Accrued interest receivable 7,389 6,901
Other assets 25,554 29,601
Assets of discontinued operations --- 72,080
---------- ----------
Total assets $1,082,998 $1,414,907
========== ==========
Liabilities and Shareholders' Equity
Warehouse line of credit $ 90,664 $ 101,776
Securities notes payable 425,872 352,564
Repurchase agreements 407,904 745,295
Accrued expenses and other liabilities 6,280 8,793
Junior subordinated debentures/trust preferred
securities 10,310 10,310
Liabilities of discontinued operations --
deposits held for sale -- 71,916
---------- ----------
Total liabilities 941,030 1,290,654
---------- ----------
Common stock (no par value):
Authorized, 30,000,000 shares
Issued and outstanding, 16,957,694 at June
30, 2005 and 16,525,832 at December 31, 2004 74,702 70,332
Retained earnings 66,845 53,517
Unrealized gain on securities available for
sale, net 421 404
---------- ----------
Total shareholders' equity 141,968 124,253
---------- ----------
Total liabilities and shareholders'
equity $1,082,998 $1,414,907
========== ==========
United PanAm Financial Corp. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share Three Months Six Months
data) Ended June 30, Ended June 30,
------------------- -------------------
2004 2004
(As (As
2005 Restated) 2005 Restated)
------- ---------- ------- ----------
Interest Income
Loans $38,614 $28,563 $73,280 $ 54,912
Short term investments 3,874 4,480 8,281 8,684
------- ------- ------- --------
Total interest income 42,488 33,043 81,561 63,596
------- ------- ------- --------
Interest Expense
Securitized borrowings 4,336 --- 7,234 ---
Warehouse credit lines 1,015 --- 2,390 ---
Repurchase agreements 3,320 2,791 6,867 5,650
Deposits --- 3,192 --- 6,409
Junior subordinated
debentures 156 109 299 229
------- ------- ------- --------
Total interest expense 8,827 6,092 16,790 12,288
------- ------- ------- --------
Net interest
income 33,661 26,951 64,771 51,308
Provision for loan losses 6,845 4,346 12,558 10,205
------- ------- ------- --------
Net interest
income after
provision for
loan losses 26,816 22,605 52,213 41,103
------- ------- ------- --------
Non-interest Income
Service charges and fees --- 103 --- 243
Loan related charges and
fees 109 303 225 615
Gain on sale of securities 384 81 2,032 81
Other income 145 182 189 621
------- ------- ------- --------
Total non-interest
income 638 669 2,446 1,560
------- ------- ------- --------
Non-interest Expense
Compensation and benefits 9,760 7,877 19,289 15,469
Occupancy 942 1,292 1,885 2,529
Market loss -- derivative
instruments --- 297 --- 297
Other 4,887 3,360 10,422 6,877
------- ------- ------- --------
Total non-interest
expense 15,589 12,826 31,596 25,172
------- ------- ------- --------
Income from continuing
operations before income taxes 11,865 10,448 23,063 17,491
Income taxes 4,827 4,218 9,400 7,058
------- ------- ------- --------
Income from continuing
operations 7,038 6,230 13,663 10,433
Income (loss) from discontinued
operations net of tax --- 400 (333) 828
------- ------- ------- --------
Net income $ 7,038 $ 6,630 $13,330 $ 11,261
======= ======= ======= ========
Earnings per share-basic:
Continuing operations $ 0.42 $ 0.39 $ 0.82 $ 0.65
Discontinued operations 0.00 0.02 (0.02) 0.05
------- ------- ------- --------
Net income $ 0.42 $ 0.41 $ 0.80 $ 0.70
======= ======= ======= ========
Weighted average shares
outstanding 16,798 16,151 16,668 16,135
======= ======= ======= ========
Earnings per share-diluted:
Continuing operations $ 0.38 $ 0.35 $ 0.74 $ 0.58
Discontinued operations 0.00 0.02 (0.02) 0.05
------- ------- ------- --------
Net income $ 0.38 $ 0.37 $ 0.72 $ 0.63
======= ======= ======= ========
Weighted average shares
outstanding 18,705 17,959 18,528 18,008
======= ======= ======= ========
United PanAm Financial Corp. and Subsidiaries
Selected Financial Data
(Unaudited)
(Dollars and shares in At or For the At or For the
thousands) Three Months Ended Six Months Ended
------------------- -------------------
June 30, June 30, June 30, June 30,
2005 2004 2005 2004
--------- ------------------- ---------
Automobile Finance Data
Gross contracts purchased $121,043 $ 91,224 $240,068 $185,449
Contracts outstanding 616,176 473,827 616,176 473,827
Allowance for credit losses to
gross loans 4.28% 5.09% 4.28% 5.09%
Unearned discount on loans to
gross loans 4.91% 4.40% 4.91% 4.40%
Annualized net charge-offs to
average contracts(1) 3.68% 4.60% 4.08% 4.97%
Delinquencies (% of net
contracts)
31-60 days 0.37% 0.43% 0.37% 0.43%
61-90 days 0.09% 0.14% 0.09% 0.14%
90+ days 0.06% 0.07% 0.06% 0.07%
-------- -------- -------- --------
Total 0.52% 0.64% 0.52% 0.64%
Other Data
Return on average assets(1) 2.60% 1.62% 2.37% 1.38%
Return on average shareholders'
equity (1) 20.42% 24.14% 20.10% 21.75%
Consolidated capital to assets
ratio 13.11% 6.32% 13.11% 6.32%
Weighted average shares
outstanding 16,798 16,151 16,668 16,134
Additional shares included for
fully diluted calculations 1,907 1,808 1,860 1,874
-------- -------- -------- --------
Number of shares used in fully
diluted calculations 18,705 17,959 18,528 18,008
(1) Quarterly and six month information is annualized for
comparability with full year information.