CHICAGO--(BUSINESS WIRE)--
Unitrin, Inc. (NYSE:UTR) today updated the progress made in its
previously announced plan to exit the automobile finance business and
recoup its investment in Fireside Bank over the next several years (the
"run-off plan"). Under the run-off plan, Fireside Bank no longer makes
new loans, accepts new deposits or rolls over existing deposits. All
branch locations have been closed other than the main office and the two
collection call centers. Fireside Bank continues to collect outstanding
loan balances and make interest payments and redemptions on outstanding
certificates of deposit in the ordinary course of business.
Don Southwell, Unitrin's Chairman, President and Chief Executive
Officer, commented, "We are extremely pleased with the execution of our
run-off plan thus far. We are confident that we will recover, over the
next several years, the approximately $230 million of capital that we
have invested in Fireside Bank. Since we announced our plan to exit the
automobile finance business at the end of the first quarter, the Tier
One Capital ratio at Fireside Bank has increased to a solid 21.3% at the
end of 2009. Loan receivables have declined steadily from $1,125
million, down to $744 million at the end of 2009. The reserve for loan
losses remains strong at 11.2% of loans outstanding. Cash and U.S.
Treasury and Agency investments now represent 31.4% of certificates of
deposit outstanding. For 2010, we expect that the amount of automobile
loan receivables and certificates of deposits outstanding will decline
substantially, and Fireside Bank will report approximately break-even
bottom line results."
Mr. Southwell also noted, "Fireside Bank has successfully concluded the
negotiation and execution of a consent order with the Federal Deposit
Insurance Corporation (the "FDIC") and Fireside Bank's state regulators
which formalizes most aspects of the run-off plan and provides for
operational restrictions and reporting requirements that are appropriate
in orderly wind down situations." Mr. Southwell further commented, "We
are also pleased that Fireside Bank's consent order with the FDIC and
its state regulators gives us the ability to conduct the run-off plan
consistent with our objectives."
Key metrics for the run-off plan are set forth in the table below, which
compares the status of the plan at the end of 2009 with the plan's
approximate inception date.
Dec. 31, Mar. 31,
Dollars in Millions 2009 2009
Net Automobile Loan Receivables Outstanding $ 744.1 $ 1,125.2
Loans 30 or more days delinquent:
Dollars $ 76.1 $ 103.4
As a percentage of Reserve for Loan Losses 91.4 % 91.0 %
Reserve for Loan Losses:
Dollars $ 83.3 $ 113.6
As a percentage of Net Automobile Receivables 11.2 % 10.1 %
Outstanding
Cash and U.S. Treasury and Agency Investments $ 214.0 $ 204.7
Certificates of Deposits:
Maturing in Less than One Year $ 245.4 $ 425.3
Maturing in More than One Year 436.9 629.1
Total $ 682.3 $ 1,054.4
Cash and U.S. Treasury and Agency Investments
as a percentage of Certificates of Deposits 31.4 % 19.4 %
Total Capital $ 233.4 $ 229.6
Tier 1 Capital $ 201.2 $ 207.2
Tier 1 Capital to total average assets 21.3 % 15.6 %
Tier 1 Capital to Net Automobile Loan Receivables 27.0 % 18.4 %
Outstanding
This release contains information that includes or is based upon
forward-looking statements within the meaning of the Federal securities
laws. Forward-looking statements give expectations or forecasts of
future events, and can be identified by the fact that they relate to
future actions, performance or results rather than strictly to
historical or current facts. Any or all forward-looking statements may
turn out to be wrong, and, accordingly, readers are cautioned not to
place undue reliance on such statements. Forward-looking statements
involve a number of risks and uncertainties that are difficult to
predict, and are not guarantees of future performance. Among the general
factors that could cause actual results to differ materially from
estimated results are those listed in the Company's reports filed by the
Company with the Securities and Exchange Commission (the "SEC"). No
assurances can be given that the results contemplated in any
forward-looking statements will be achieved at all or in any particular
timetable, and the Company assumes no obligation to publicly correct or
update any forward-looking statements as a result of any subsequent
developments. However, readers are advised to consult any further
disclosures the Company makes on related subjects in its SEC filings.
Unitrin is a diversified insurance holding company, with subsidiaries
that provide life, health, auto, homeowners and other insurance products
for individuals and small businesses.
Unitrin's principal businesses are:
-- Kemper(1), which provides auto, homeowners and other insurance products
to individuals through a network of independent agents,
-- Unitrin Direct, which markets auto and homeowners insurance to consumers
via direct mail, the Internet and employer-sponsored employee benefit
programs and other affinity relationships,
-- Unitrin Specialty, which provides auto insurance through a network of
independent agents and brokers to individuals and small businesses which
have had difficulty procuring insurance through traditional channels,
usually due to adverse driving records or claim or credit histories, and
-- Unitrin's Career Agency Companies, which specialize in the sale of life
insurance products to persons of modest incomes through a network of
employee agents.
1Unitrin uses the registered trademark "Kemper" under
license, for personal lines insurance only, from Lumbermens Mutual
Casualty Company, which is not affiliated with Unitrin.
Additional information about Unitrin is available by visiting its
website (www.unitrin.com).
Unitrin plans to issue a news release discussing its full year and
fourth quarter results and file its annual report on Form 10-K after the
market closes on Monday, February 1, 2010. SOURCE: Unitrin, Inc.
Source: Unitrin, Inc.
Contact: Unitrin, Inc.
Frank J. Sodaro, (312) 661-4930
investor.relations@unitrin.com