United PanAm Financial Corp. Announces Third Quarter 2010 Results

United Panam Financial Corp. (Pink Sheets: UPFC) today announced results for its third quarter ended September 30, 2010.

Results for the Period Ended September 30, 2010

For the quarter ended September 30, 2010, UPFC reported a net loss of $1.8 million, compared to a net loss of $19.9 million for the same period a year ago. Interest income decreased to $4.3 million for the quarter ended September 30, 2010 from $29.9 million for the same period a year ago. The reduction in interest income was mostly due to a reduction in the aggregate amount of outstanding receivables following UPFC’s previously-disclosed sale of its securitization residual interests in May 2010. UPFC reported a net loss of $0.12 per diluted share for the quarter ended September 30, 2010, compared to a net loss of $1.29 per diluted share for the same period a year ago.

For the nine months ended September 30, 2010, UPFC reported a net loss of $4.4 million, compared to a net loss of $23.0 million for the same period a year ago. For the nine months ended September 30, 2010, interest income was $37.7 million, compared to $105.2 million for the same period a year ago. The reduction in interest income was largely a result of the reduction in outstanding receivables described above. UPFC reported a net loss of $0.28 per diluted share for the nine months ended September 30, 2010, compared to a net loss of $1.47 per diluted share for the same period a year ago. The reported net loss for the nine months ended September 30, 2010 includes an after-tax charge of $6.9 million, or $0.45 per diluted share, for restructuring charges associated with branch closures and other non-recurring charges, including an adjustment to its deferred tax asset. The reported net loss for the nine months ended September 30, 2009 included an after-tax charge of $6.0 million, or $0.39 per diluted share, for restructuring charges associated with branch closures and other non-recurring charges.

United Auto Credit Corporation (UACC), a wholly-owned subsidiary of UPFC, purchases automobile installment sales contracts through its field marketing staff and regional underwriting offices and services all of its automobile installment sales contracts through its Hurst, Texas office. UACC purchased approximately $27.5 million of automobile installment sales contracts for the three months ended September 30, 2010 and $60.2 million for the nine months ended September 30, 2010. Comparatively, UACC purchased approximately $2.4 million of automobile installment sales contracts for the three months ended September 30, 2009 and $2.4 million for the nine months ended September 30, 2009.

On October 28, 2010, UACC entered into a transaction with Wells Fargo Preferred Capital, Inc. (WFPC) pursuant to which UACC may borrow up to $25 million against specifically pledged auto receivables. The facility is for a three-year period and, subject to WFPC’s approval, may be increased to $50 million.

About United PanAm Financial Corp.

United PanAm Financial Corp. is a specialty finance company engaged in indirect automobile finance, which includes the purchasing and servicing of automobile installment sales contracts from independent and franchised dealers of used automobiles. UPFC conducts its automobile finance business through its wholly-owned subsidiary, United Auto Credit Corporation.

Forward Looking Statements

Any statements set forth above as well as some oral statements by our officials to securities analysts and shareholders during presentations about us are "forward-looking statements.” Statements which are predictive in nature, which depend upon or refer to future events or conditions, or which include words such as "expects,” "anticipates,” "intends,” "plans,” "believes,” "estimates,” "hopes,” "assumes,” "may,” "project,” "will” and similar expressions constitute forward-looking statements. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future actions, which may be provided by management, are also forward-looking statements. Forward-looking statements are based upon expectations and projections about future events and are subject to assumptions, risks and uncertainties about, among other things, our company and economic and market factors. Actual events and results may differ materially from those expressed or forecasted in the forward-looking statements due to a number of factors. The principal factors that could cause our actual performance and future events and actions to differ materially from such forward-looking statements include, but are not limited to, 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 pressure we face, changes in the interest rate environment, general economic conditions, the effects of accounting changes, inability to manage consolidating operations and other factors or conditions. Our past performance and past or present economic conditions are not indicative of our future performance or of future economic conditions. Undue reliance should not be placed on forward-looking statements. In addition, we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events or changes to projections over time unless required by federal securities law.