A California subprime auto lender said Friday that it is unloading the last of its deposits and that it will rely on the capital markets to fund its lending.
United PanAm Financial Corp. in Newport Beach said that its thrift subsidiary, Pan American Bank, planned to sell about $70 million of certificates of deposit that it had booked through Pan American's Web site to the $490 million-asset Silvergate Bank of La Jolla, Calif.
United's chief financial officer, Garland W. Koch, would not disclose the sale price but said that after the deal closes Pan American would have no more deposits and would be dissolved.
United announced in July that it was selling the thrift's three branches, all in California. The $17 billion-asset Guaranty Bank in Austin is buying the branches in Burlingame and San Carlos and the $561 million-asset Kaiser Federal Bank in Covina, Calif., is buying the Panorama City branch.
Company officials had said that they wanted to dispose of the thrift, which had assets of $1.9 billion, because they were frustrated with the regulatory burdens.
