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, 2004 |
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 August 13, 2004 was 16,166,365 shares.
UNITED PANAM FINANCIAL CORP.
FORM 10-Q
JUNE 30, 2004
FINANCIAL INFORMATION
United PanAm Financial Corp. and Subsidiaries
Consolidated Statements of Financial Condition
(Unaudited)
| June 30, 2004 |
December 31, 2003 |
|||||||
| (In thousands) | ||||||||
| Assets |
||||||||
| Cash and due from banks |
$ | 7,076 | $ | 8,376 | ||||
| Short term investments |
16,149 | 5,833 | ||||||
| Cash and cash equivalents |
23,225 | 14,209 | ||||||
| Securities available for sale, at fair value |
1,120,999 | 1,202,444 | ||||||
| Loans |
514,119 | 440,992 | ||||||
| Less unearned discount |
(20,396 | ) | (14,368 | ) | ||||
| Less allowance for loan losses |
(24,493 | ) | (25,253 | ) | ||||
| Loans, net |
469,230 | 401,371 | ||||||
| Premises and equipment, net |
3,403 | 3,163 | ||||||
| Federal Home Loan Bank stock, at cost |
11,910 | 11,563 | ||||||
| Accrued interest receivable |
11,593 | 9,849 | ||||||
| Other assets |
28,305 | 25,107 | ||||||
| Total assets |
$ | 1,668,665 | $ | 1,667,706 | ||||
| Liabilities and Shareholders’ Equity |
||||||||
| Deposits |
$ | 520,976 | $ | 498,389 | ||||
| Repurchase agreements |
1,020,584 | 1,052,205 | ||||||
| Accrued expenses and other liabilities |
6,590 | 6,795 | ||||||
| Junior subordinated debentures/Trust preferred securities |
10,300 | 10,000 | ||||||
| Total Liabilities |
1,558,450 | 1,567,389 | ||||||
| Common stock (no par value): |
||||||||
| Authorized, 30,000,000 shares |
||||||||
| Issued and outstanding 16,164,365 shares at June 30, 2004 and 16,100,204 at December 31, 2003 |
66,453 | 66,109 | ||||||
| Retained earnings |
46,079 | 34,079 | ||||||
| Unrealized (loss) gain on securities available for sale, net |
(2,317 | ) | 129 | |||||
| Total shareholders’ equity |
110,215 | 100,317 | ||||||
| Total liabilities and shareholders’ equity |
$ | 1,668,665 | $ | 1,667,706 | ||||
See accompanying notes to consolidated financial statements.
1
United PanAm Financial Corp. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
| Three Months Ended June 30, |
Six Months Ended June 30, | |||||||||||
| 2004 |
2003 |
2004 |
2003 | |||||||||
| (In thousands, except per share data) | ||||||||||||
| Interest Income |
||||||||||||
| Loans |
$ | 29,488 | $ | 19,973 | $ | 56,564 | $ | 36,776 | ||||
| Securities |
4,655 | 4,116 | 9,729 | 7,830 | ||||||||
| Total interest income |
34,143 | 24,089 | 66,293 | 44,606 | ||||||||
| Interest Expense |
||||||||||||
| Deposits |
3,494 | 3,544 | 7,013 | 7,236 | ||||||||
| Repurchase agreements |
2,705 | 2,261 | 5,564 | 3,857 | ||||||||
| Subordinated debenture |
109 | — | 229 | — | ||||||||
| Total interest expense |
6,308 | 5,805 | 12,806 | 11,093 | ||||||||
| Net interest income |
27,835 | 18,284 | 53,487 | 33,513 | ||||||||
| Provision for loan losses |
5,114 | 3,176 | 10,325 | 5,879 | ||||||||
| Net interest income after provision for loan losses |
22,721 | 15,108 | 43,162 | 27,634 | ||||||||
| Non-interest Income |
||||||||||||
| Service charges and fees |
218 | 217 | 474 | 447 | ||||||||
| Loan related charges and fees |
78 | 69 | 164 | 161 | ||||||||
| Gain on sale of securities |
98 | 315 | 597 | 315 | ||||||||
| Other income |
182 | 170 | 620 | 344 | ||||||||
| Total non-interest income |
576 | 771 | 1,855 | 1,267 | ||||||||
| Non-interest Expense |
||||||||||||
| Compensation and benefits |
7,998 | 6,477 | 15,711 | 12,488 | ||||||||
| Occupancy |
1,297 | 1,107 | 2,540 | 2,138 | ||||||||
| Other |
3,425 | 2,512 | 6,631 | 4,791 | ||||||||
| Total non-interest expense |
12,720 | 10,096 | 24,882 | 19,417 | ||||||||
| Income before income taxes and discontinued operations |
10,577 | 5,783 | 20,135 | 9,484 | ||||||||
| Income taxes |
4,274 | 2,324 | 8,135 | 3,821 | ||||||||
| Income before discontinued operations |
6,303 | 3,459 | 12,000 | 5,663 | ||||||||
| Discontinued operations |
— | — | — | 432 | ||||||||
| Net income |
$ | 6,303 | $ | 3,459 | $ | 12,000 | $ | 6,095 | ||||
| Earnings per share-basic: |
||||||||||||
| Income before discontinued operations |
$ | 0.39 | $ | 0.22 | $ | 0.74 | $ | 0.35 | ||||
| Discontinued operations |
— | — | — | 0.03 | ||||||||
| Net income |
$ | 0.39 | $ | 0.22 | $ | 0.74 | $ | 0.38 | ||||
| Weighted average shares outstanding |
16,151 | 15,877 | 16,135 | 15,872 | ||||||||
| Earnings per share-diluted: |
||||||||||||
| Income before discontinued operations |
$ | 0.35 | $ | 0.20 | $ | 0.67 | $ | 0.33 | ||||
| Discontinued operations |
— | — | — | 0.02 | ||||||||
| Net income |
$ | 0.35 | $ | 0.20 | $ | 0.67 | $ | 0.35 | ||||
| Weighted average shares outstanding |
17,959 | 17,351 | 18,008 | 17,175 | ||||||||
See accompanying notes to consolidated financial statements.
2
United PanAm Financial Corp. and Subsidiaries
Consolidated Statements of Comprehensive Income
(Unaudited)
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
| 2004 |
2003 |
2004 |
2003 |
|||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| Net income |
$ | 6,303 | $ | 3,459 | $ | 12,000 | $ | 6,095 | ||||||||
| Other comprehensive income, net of tax: |
||||||||||||||||
| Unrealized loss on securities available for sale |
(2,794 | ) | (70 | ) | (2,446 | ) | (334 | ) | ||||||||
| Comprehensive income |
$ | 3,509 | $ | 3,389 | $ | 9,554 | $ | 5,761 | ||||||||
See accompanying notes to consolidated financial statements
3
United PanAm Financial Corp. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
| Six Months Ended June 30, |
||||||||
| 2004 |
2003 |
|||||||
| (Dollars in thousands) | ||||||||
| Cash Flows from Operating Activities |
||||||||
| Net income |
$ | 12,000 | $ | 6,095 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Gain on sale of securities |
(597 | ) | (315 | ) | ||||
| Provision for loan losses |
10,325 | 5,879 | ||||||
| Depreciation and amortization |
638 | 533 | ||||||
| FHLB stock dividend |
(347 | ) | (51 | ) | ||||
| Decrease (increase) in accrued interest receivable and other assets |
(8,594 | ) | 2,527 | |||||
| Decrease in accrued expenses and other liabilities |
(205 | ) | (4,159 | ) | ||||
| Amortization of premiums on securities |
902 | 2,024 | ||||||
| Net cash provided by operating activities |
14,122 | 12,533 | ||||||
| Cash Flows from Investing Activities |
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