UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark one)
| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2003
Commission File Number 000-24051
UNITED PANAM FINANCIAL CORP.
(Exact name of Registrant as specified in its charter)
| California | 94-3211687 | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification Number) |
3990 Westerly Place, Suite 200
Newport Beach, CA 92660
(Address of principal executive offices) (Zip Code)
(949) 224-1917
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x
The number of shares outstanding of the Registrant’s Common Stock as of July 31, 2003 was 15,886,332
UNITED PANAM FINANCIAL CORP.
FORM 10-Q
JUNE 30, 2003
| Page | ||||
| PART I. |
FINANCIAL INFORMATION |
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| Item 1. |
Financial Statements (unaudited) |
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| Consolidated Statements of Financial Condition as of June 30, 2003 and December 31, 2002 |
1 | |||
| 2 | ||||
| 3 | ||||
| Consolidated Statements of Cash Flows for the six months ended June 30, 2003 and June 30, 2002 |
4 | |||
| 6 | ||||
| Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
10 | ||
| Item 3. |
25 | |||
| Item 4. |
25 | |||
| PART II. |
OTHER INFORMATION |
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| Item 1. |
26 | |||
| Item 2. |
26 | |||
| Item 3. |
26 | |||
| Item 4. |
26 | |||
| Item 5. |
26 | |||
| Item 6. |
26 | |||
| PART I. | FINANCIAL INFORMATION |
| Item 1. | Financial Statements. |
United PanAm Financial Corp. and Subsidiaries
Consolidated Statements of Financial Condition
(Unaudited)
| (In thousands, except share and per share data) | June 30, 2003 |
December 31, 2002 |
||||||
| Assets |
||||||||
| Cash and due from banks |
$ | 7,334 | $ | 9,964 | ||||
| Short term investments |
24,768 | 3,590 | ||||||
| Cash and cash equivalents |
32,102 | 13,554 | ||||||
| Securities available for sale, at fair value |
916,054 | 603,268 | ||||||
| Loans |
395,810 | 331,257 | ||||||
| Less unearned discount |
(8,462 | ) | — | |||||
| Less allowance for loan losses |
(16,854 | ) | (23,179 | ) | ||||
| Loans, net |
370,494 | 308,078 | ||||||
| Premises and equipment, net |
2,807 | 2,700 | ||||||
| Federal Home Loan Bank stock, at cost |
9,587 | 1,675 | ||||||
| Accrued interest receivable |
1,606 | 1,880 | ||||||
| Other assets |
16,772 | 20,131 | ||||||
| Total assets |
$ | 1,349,422 | $ | 951,286 | ||||
| Liabilities and Shareholders’ Equity |
||||||||
| Deposits |
$ | 468,807 | $ | 468,458 | ||||
| Repurchase agreements |
778,834 | 384,624 | ||||||
| Accrued expenses and other liabilities |
4,385 | 8,545 | ||||||
| Total liabilities |
1,252,026 | 861,627 | ||||||
| Common stock (no par value): |
||||||||
| Authorized, 30,000,000 shares Issued and outstanding, 15,881,306 shares at June 30, 2003 and 15,836,725 December 31, 2002 |
65,012 | 64,957 | ||||||
| Retained earnings |
31,830 | 23,814 | ||||||
| Unrealized gain on securities available for sale, net |
554 | 888 | ||||||
| Total shareholders’ equity |
97,396 | 89,659 | ||||||
| Total liabilities and shareholders’ equity |
$ | 1,349,422 | $ | 951,286 | ||||
See accompanying notes to consolidated financial statements.
1
United PanAm Financial Corp. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
| (In thousands, except per share data) | Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||
| 2003 |
2002 |
2003 |
2002 | |||||||||
| Interest Income |
||||||||||||
| Loans |
$ | 19,973 | $ | 14,081 | $ | 36,776 | $ | 27,115 | ||||
| Securities |
4,116 | 3,124 | 7,830 | 5,782 | ||||||||
| Total interest income |
24,089 | 17,205 | 44,606 | 32,897 | ||||||||
| Interest Expense |
||||||||||||
| Deposits |
3,544 | 3,115 | 7,236 | 6,348 | ||||||||
| Federal Home Loan Bank advances |
— | 215 | — | 784 | ||||||||
| Repurchase agreements |
2,261 | 1,107 | 3,857 | 1,300 | ||||||||
| Total interest expense |
5,805 | 4,437 | 11,093 | 8,432 | ||||||||
| Net interest income |
18,284 | 12,768 | 33,513 | 24,465 | ||||||||
| Provision for loan losses |
2,095 | 99 | 2,630 | 183 | ||||||||
| Net interest income after provision for loan losses |
16,189 | 12,669 | 30,883 | 24,282 | ||||||||
| Non-interest Income |
||||||||||||
| Net gain on sale of securities |
315 | — | 315 | 61 | ||||||||
| Service charges and fees |
217 | 197 | 447 | 388 | ||||||||
| Loan related charges and fees |
69 | 71 | 161 | 156 | ||||||||
| Other income |
170 | 32 | 1,069 | 61 | ||||||||
| Total non-interest income |
771 | 300 | 1,992 | 666 | ||||||||
| Non-interest Expense |
||||||||||||
| Compensation and benefits |
6,477 | 4,971 | 12,488 | 9,780 | ||||||||
| Occupancy |
1,107 | 895 | 2,138 | 1,770 | ||||||||
| Other |
2,512 | 2,126 | 4,792 | 4,322 | ||||||||
| Total non-interest expense |
10,096 | 7,992 | 19,418 | 15,872 | ||||||||
| Income before income taxes and cumulative effect of change in accounting principle |
6,864 | 4,977 | 13,457 | 9,076 | ||||||||
| Income taxes |
2,758 | 1,953 | 5,441 | 3,492 | ||||||||
| Income before cumulative effect of change in accounting principle |
4,106 | 3,024 | 8,016 | 5,584 | ||||||||
| Cumulative effect of change in accounting principle net of tax |
— | — | — | 106 | ||||||||
| Net income |
$ | 4,106 | $ | 3,024 | 8,016 | 5,690 | ||||||
| Earnings per share-basic: |
||||||||||||
| Income before cumulative effect of change in accounting principle |
$ | 0.26 | $ | 0.19 | $ | 0.51 | $ | 0.36 | ||||
| Cumulative effect of change in accounting principle |
$ | — | $ | — | $ | — | $ | 0.01 | ||||
| Net income |
$ | 0.26 | $ | 0.19 | $ | 0.51 | $ | 0.37 | ||||
| Weighted average shares outstanding |
15,877 | 15,571 | 15,872 | 15,571 | ||||||||
| Earnings per share-diluted: |
||||||||||||
| Income before cumulative effect of change in accounting principle |
$ | 0.23 | $ | 0.17 | $ | 0.45 | $ | 0.32 | ||||
| Cumulative effect of change in accounting principle |
$ | — | $ | — | $ | — | $ | 0.01 | ||||
| Net income |
$ | 0.23 | $ | 0.17 | $ | 0.45 | $ | 0.33 | ||||
| Weighted average shares outstanding |
18,148 | 17,626 | 17,887 | 17,500 | ||||||||
See accompanying notes to consolidated financial statements
2
United PanAm Financial Corp. and Subsidiaries
Consolidated Statements of Comprehensive Income
(Unaudited)
| (Dollars in thousands) | Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||
| 2003 |
2002 |
2003 |
2002 |
||||||||||||
| Net income |
$ | 4,106 | $ | 3,024 | $ | 8,016 | $ | 5,690 | |||||||
| Other comprehensive income, net of tax: |
|||||||||||||||
| Unrealized gain (loss) on securities available for sale |
(70 | ) | 254 | (334 | ) | (308 | ) | ||||||||
| Comprehensive income |
$ | 4,036 | $ | 3,278 | $ | 7,682 | $ | 5,382 | |||||||