UACA has a profitable quarter. Too bad it still practices gain on sale accounting. The good news is its sources of credit are still intact via a monline insurance co.
Company Press Release
Union Acceptance Corporation Reports Net Earnings for the First Quarter of Fiscal 1999
INDIANAPOLIS--(BUSINESS WIRE)--Oct. 27, 1998--Union Acceptance Corporation (Nasdaq:UACA - news) today reported net earnings of $2.1 million, or $0.16 per diluted share, for the first quarter ended September 30, 1998, compared to a net loss of $6.9 million, or $0.52 per diluted share, reported in the comparable quarter of last year.
Loan acquisitions for the first quarter were $404.5 million compared to $252.9 million acquired in the same quarter of last year. The Company securitized $351.4 million during the current quarter resulting in a gain on sale of $6.2 million compared to a securitization of $218.4 million and a gain on sale of $5.5 million in the same quarter of last year.
In September 1998, the Company established a new warehouse facility with its existing lender, which replaced two existing facilities. The new facility is wrapped by a monoline insurance company and has a 12 month term. The size increased from an aggregate capacity of $400 million to $450 million, and the pricing and advance rate improved. At September 30, 1998, $84.8 million of the capacity was utilized, and an additional $62.6 million was available to borrow based on the outstanding principal balance of eligible loans.
Delinquency on the Tier I automobile portfolio was 3.05% at September 30, 1998, compared to 3.07% and 4.33% at June 30, 1998, and September 30, 1997, respectively. Tier I credit losses totaled 2.78% for the quarter ended September 30, 1998, compared to 2.53% for the quarter ended June 30, 1998 and 3.17% for the quarter ended September 30, 1997. Recovery rates were 38.67% for the current quarter compared to 41.17% for the quarter ended June 30, 1998 and 35.28% for the quarter ended September 30, 1997.
''We are very pleased with the quantity, as well as quality of loan acquisitions during the first quarter. We attribute this to a focus on providing better dealer service as we strive to maintain a prime quality portfolio,'' said John Stainbrook, President and Chief Executive Officer. ''The capacity and the terms of the new warehouse have improved our liquidity and demonstrate the confidence our lenders have in our Company.'' |
