WFSI Wfs Financial Inc. (MM)

WFS Financial Inc (Nasdaq:WFSI): -- Fourth quarter net income increased 49% to $65 million -- Annual net income rose 31% to a record $239 million -- Fourth quarter earnings per share increased 49% to $1.58 per share -- Earnings per share increased 31% to a record $5.83 per share for 2005 -- Contract originations for the year grew 13% to $7.5 billion WFS Financial Inc (Nasdaq:WFSI) reported that net income increased 49% to $64.9 million for the three months ended December 31, 2005 compared with $43.7 million for the same period a year ago. Earnings per diluted share increased 49% to $1.58 for the three months ended December 31, 2005 compared with $1.06 per diluted share for the same period a year earlier. For the year ended December 31, 2005, net income increased 31% to $239 million compared with $182 million in 2004. Earnings per diluted share rose 31% to $5.83 for the year ended December 31, 2005 compared with $4.44 for 2004. "We are proud of our fourth consecutive record year," said Tom Wolfe, CEO of WFS Financial. "Our annual net income of $239 million and earnings per share of $5.83 exceeded our forecast. We remain committed to our superior credit quality and operational excellence." Annualized credit loss experience improved 24 basis points to 1.77% of average managed automobile contracts for the fourth quarter compared with 2.01% for the same period a year earlier. For the year ended December 31, 2005, credit loss experience improved 53 basis points to 1.46% compared with 1.99% for 2004. The improvement in credit loss experience reflects a 10% decrease in the annualized default rate for the quarter to 4.0% compared with 4.4% a year ago. In addition, the total recovery rate improved 11% to 69% for the quarter compared to 62% a year ago. This rate includes both the average realization on the collateral sold of 54%, up from 48% a year ago, and deficiency balance recoveries of 15%, up from 14% a year ago. The percentage of outstanding automobile contracts 30 days or more delinquent increased 15 basis points to 2.39% at December 31, 2005 compared with 2.24% a year ago. The provision for credit losses decreased to $56.3 million for the three months ended December 31, 2005, compared with $59.0 million for the same period a year earlier due to lower chargeoff experience. For the year ended December 31, 2005, the provision for credit losses decreased to $188 million compared with $192 million for 2004. At December 31, 2005, the allowance for credit losses totaled $288 million or 2.4% of owned automobile contracts compared with $252 million or 2.6% at December 31, 2004. Automobile contract purchases totaled $1.6 billion for the fourth quarter of 2005, a 3% increase from the same period a year earlier. For the year ended December 31, 2005, automobile contract purchases totaled $7.5 billion, a 13% increase compared with $6.6 billion a year ago. As a result of higher contract originations, the Company's portfolio of managed automobile contracts grew 10% to $12.8 billion at December 31, 2005, up from $11.6 billion a year earlier. Total average interest earning assets increased $2.5 billion to $12.4 billion for the fourth quarter, up from $9.9 billion for the same period a year ago. As a result, net interest income grew 31% to $207 million for the fourth quarter compared with $159 million for the same period a year earlier. Net interest margin was 6.17% for the fourth quarter compared with 5.98% for the same period a year ago. For the year ended December 31, 2005, net interest income grew 28% to $745 million compared with $584 million for 2004. Net interest margin was 6.00% for the year ended December 31, 2005 compared with 5.88% a year earlier. Noninterest income decreased $13.9 million to $20.5 million for the three months ended December 31, 2005 compared with $34.4 million for the same period a year earlier. For the year ended December 31, 2005, noninterest income decreased $69.9 million to $84.9 million compared with $155 million for 2004. Noninterest income was reduced by $15.1 million and $64.4 million of loan origination fees that were deferred during the three and twelve months ended December 31, 2005, respectively. Noninterest expense decreased to $62.0 million or 1.95% of average managed contracts for the fourth quarter compared with $62.7 million or 2.18% of average managed contracts for the same period a year earlier. For the year ended December 31, 2005, noninterest expense was $244 million or 1.99% of average managed contracts compared with $245 million or 2.21% of average managed contracts a year ago. Noninterest expense was reduced by $5.9 million and $26.6 million of direct origination costs that were deferred during the three and twelve months ended December 31, 2005, respectively. Historically, the Company performed analysis on the fees and direct costs related to its origination of automobile loans and elected not to defer and amortize such amounts as the net effect was not material to its financial statements in accordance with Statement of Financial Accounting Standard No. 91 and SEC Staff Accounting Bulletin No. 99. Due to continuing improvements in operating efficiencies and the higher amount of documentation fees earned, the difference between the amount of fees received and the direct costs incurred has gradually increased. The Company decided to defer and amortize these amounts to interest income prospectively beginning in the first quarter of 2005. Due to the pending merger with Wachovia, there will be no scheduled investor conference call to discuss the fourth quarter results. The merger is expected to close in the latter half of the first quarter of 2006, subject to the receipt of certain regulatory approvals. Westcorp is a financial services holding company whose principal subsidiaries are WFS Financial Inc and Western Financial Bank. Westcorp is a publicly owned company whose common stock is traded on the New York Stock Exchange under the symbol WES. Information about Westcorp can be found at its web site at http://www.westcorpinc.com Westcorp, through its subsidiary, WFS Financial, is one of the nation's largest independent automobile finance companies. WFS Financial specializes in originating, securitizing, and servicing new and pre-owned prime and non-prime credit quality automobile contracts through its nationwide relationships with automobile dealers. WFS Financial is a publicly owned company whose common stock is traded on the Nasdaq under the symbol WFSI. Information about WFS Financial can be found at its web site at http://www.wfsfinancial.com. Westcorp, through its subsidiary, Western Financial Bank, operates retail bank branches and provides commercial banking services in Southern California. Information on the products and services offered by the Bank can be found at its web site at http://www.wfb.com. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act, as amended. Forward-looking statements are identified by the use of terms and phrases such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will," and similar terms and phrases, including references to assumptions. Forward-looking statements in this press release relate to analyses and other information, which are based on forecasts of future results and estimates of amounts not yet determinable. These statements relate to the Company's future prospects, developments and business strategies and include information regarding the Company's improved credit quality trends and higher automobile origination growth. In addition, forward-looking statements include statements regarding the proposed merger with Wachovia, continuing improvements in operating efficiencies, the higher amount of documentation fees earned and the Company's superior credit quality and operational excellence. Forward-looking statements are subject to uncertainties and factors relating to the Company's operations and business environment, all of which are difficult to predict and many of which are beyond its control that could cause actual results to differ materially from those expressed in or implied by these forward-looking statements. In particular, there can be no assurances that improved credit quality trends or origination growth identified in this press release will continue in future periods or that we will have continued improvements in operating efficiencies or have a higher amount of documentation fees earned. The following factors are among those that may cause actual results to differ materially from the forward-looking statements: changes in general economic and business conditions; interest rate fluctuations, including the effect of hedging activities; the Company's financial condition and liquidity, as well as future cash flow and earnings and the level of operating expenses; competition; the effect, interpretation, or application of new or existing laws, regulations, court decisions and significant litigation; the exercise of discretionary authority by regulatory agencies; a decision to change the Company's corporate structure; the availability of sources of funding; and the level of chargeoffs on the automobile contracts that the Company originates. In addition, the Company can provide no assurances that the proposed merger with Wachovia will close when expected, if at all. The merger is subject to the receipt of the requisite regulatory approvals, including the approval of applicable banking regulators; receipt of opinions as to the tax treatment of the mergers; and listing on the New York Stock Exchange, subject to notice of issuance, of Wachovia's common stock to be issued in the mergers, among other things. A further list of these risks, uncertainties and other matters can be found in the Company's filings with the Securities and Exchange Commission. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, the Company's actual results may vary materially from those expected, estimated or projected. The information contained in this press release is as of January 31, 2006. The Company assumes no obligation to update any forward-looking statements to reflect future events or circumstances. -0- *T WFS FINANCIAL INC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) For the Three Months For the Twelve Months Ended December 31, Ended December 31, ------------------------- ------------------------ 2005 2004 2005 2004 ----------- ----------- ----------- ---------- (Dollars in thousands, except per share amounts) Interest income: Loans, including fees $ 308,159 $ 235,126 $ 1,107,360 $ 888,231 Other 7,425 3,686 26,249 11,904 ----------- ----------- ----------- ---------- TOTAL INTEREST INCOME 315,584 238,812 1,133,609 900,135 Interest expense: Notes payable on automobile secured financing 97,313 70,786 344,175 274,541 Other 11,031 9,432 44,493 41,783 ----------- ----------- ----------- ---------- TOTAL INTEREST EXPENSE 108,344 80,218 388,668 316,324 ----------- ----------- ----------- ---------- NET INTEREST INCOME 207,240 158,594 744,941 583,811 Provision for credit losses 56,313 58,961 188,328 192,315 ----------- ----------- ----------- ---------- NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 150,927 99,633 556,613 391,496 Noninterest income: Automobile servicing 19,084 33,125 79,133 137,593 Gain on sale of contracts 13,792 Other 1,386 1,261 5,795 3,395 ----------- ----------- ----------- ---------- TOTAL NONINTEREST INCOME 20,470 34,386 84,928 154,780 Noninterest expense: Salaries and associate benefits 38,286 40,652 151,451 159,571 Credit and collections 9,420 8,758 34,455 32,812 Data processing 5,287 5,043 19,090 16,498 Occupancy 2,986 2,944 11,785 11,423 Other 6,031 5,266 27,014 25,080 ----------- ------------ ----------- ---------- TOTAL NONINTEREST EXPENSE 62,010 62,663 243,795 245,384 ----------- ----------- ----------- ---------- INCOME BEFORE INCOME TAX 109,387 71,356 397,746 300,892 Income tax 44,511 27,673 158,393 118,651 ----------- ----------- ----------- ---------- NET INCOME $ 64,876 $ 43,683 $ 239,353 $ 182,241 =========== =========== =========== ========== Earnings per common share: Basic $ 1.58 $ 1.06 $ 5.83 $ 4.44 =========== =========== =========== ========== Diluted $ 1.58 $ 1.06 $ 5.83 $ 4.44 =========== =========== =========== ========== Weighted average number of common shares outstanding: Basic 41,088,380 41,038,003 41,072,794 41,036,408 =========== =========== =========== ========== Diluted 41,088,380 41,081,156 41,072,794 41,079,337 =========== =========== =========== ========== WFS FINANCIAL INC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) December 31, December 31, 2005 2004 ------------ ----------- (Dollars in thousands) ASSETS Cash $ 99,049 $ 87,963 Restricted cash 535,845 363,783 Contracts receivable 11,795,080 9,563,057 Allowance for credit losses (287,800) (252,465) ----------- ---------- Contracts receivable, net 11,507,280 9,310,592 Accrued interest receivable 69,621 55,126 Premises and equipment, net 31,886 30,820 Other 116,433 100,934 ----------- ---------- TOTAL ASSETS $12,360,114 $9,949,218 =========== ========== LIABILITIES Lines of credit -- parent $ 577,918 $ 213,741 Notes payable on automobile secured financing 9,957,930 8,105,275 Notes payable -- parent 300,000 300,000 Amounts held on behalf of trustee 110,550 194,913 Other 126,868 104,812 ----------- ---------- TOTAL LIABILITIES 11,073,266 8,918,741 SHAREHOLDERS' EQUITY Common stock (no par value; authorized 50,000,000 shares; issued and outstanding 41,088,380 shares at December 31, 2005 and 41,038,003 shares at December 31, 2004) 338,678 338,328 Paid-in capital 6,907 6,324 Retained earnings 928,782 689,429 Accumulated other comprehensive income (loss), net of tax 12,481 (3,604) ----------- ---------- TOTAL SHAREHOLDERS' EQUITY 1,286,848 1,030,477 ----------- ---------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $12,360,114 $9,949,218 =========== ========== The following table presents information relative to the average balances and interest rates on an owned basis for the periods indicated: For the Three Months Ended December 31, -------------------------------------- 2005 -------------------------------------- Average Interest Yield/ Balance Rate ------------- ---------- ------------- (Dollars in thousands) Interest earning assets: Contracts receivable (1) $11,669,072 $308,159 10.48% Investment securities 750,580 7,425 3.93 ------------- ---------- ------------- Total interest earning assets $12,419,652 315,584 10.08 ============= Interest bearing liabilities: Lines of credit -- parent $ 212,871 2,722 5.07 Notes payable -- parent 300,000 7,687 10.25 Notes payable on automobile secured financing 10,439,783 97,313 3.73 Other 124,282 622 1.99 ------------- ---------- ------------- Total interest bearing liabilities $11,076,936 108,344 3.91% ============= ---------- ------------- Net interest income and interest rate spread $207,240 6.17% ========== ============= Net yield on average interest earning assets 6.59% ============= For the Three Months Ended December 31, ------------------------------------- 2004 ------------------------------------ Average Interest Yield/ Balance Rate ----------- ---------- ------------ (Dollars in thousands) Interest earning assets: Contracts receivable (1) $9,199,131 $235,126 10.17% Investment securities 748,814 3,686 1.96 ----------- ---------- ------------ Total interest earning assets $9,947,945 238,812 9.55 =========== Interest bearing liabilities: Lines of credit -- parent $ 86,450 875 4.02 Notes payable -- parent 300,000 7,688 10.25 Notes payable on automobile secured financing 8,356,948 70,786 3.39 Other 253,535 869 1.36 ----------- ---------- ------------ Total interest bearing liabilities $8,996,933 80,218 3.57% =========== ---------- ------------ Net interest income and interest rate spread $158,594 5.98% ========== ============ Net yield on average interest earning assets 6.38% ============ (1) For the purpose of these computations, nonaccruing contracts are included in the average amounts outstanding. For the Twelve Months Ended December 31, -------------------------------------- 2005 -------------------------------------- Average Interest Yield/ Balance Rate ------------ ----------- ------------- (Dollars in thousands) Interest earning assets: Contracts receivable (1) $10,807,245 $1,107,360 10.25% Investment securities 813,647 26,249 3.23 ------------ ----------- ------------- Total interest earning assets $11,620,892 1,133,609 9.75 ============ Interest bearing liabilities: Lines of credit -- parent $ 244,157 10,866 4.45 Notes payable -- parent 300,000 30,750 10.25 Notes payable on automobile secured financing 9,647,157 344,175 3.57 Other 165,682 2,877 1.74 ------------ ----------- ------------- Total interest bearing liabilities $10,356,996 388,668 3.75% ============ ----------- ------------- Net interest income and interest rate spread $744,941 6.00% =========== ============= Net yield on average interest earning assets 6.41% ============= For the Twelve Months Ended December 31, ------------------------------------- 2004 ----------------------------------- Average Interest Yield/ Balance Rate ----------- --------- ------------- (Dollars in thousands) Interest earning assets: Contracts receivable (1) $8,494,542 $888,231 10.46% Investment securities 867,372 11,904 1.37 ----------- --------- ------------- Total interest earning assets $9,361,914 900,135 9.61 =========== Interest bearing liabilities: Lines of credit -- parent $ 54,188 1,831 3.38 Notes payable -- parent 356,213 35,739 10.03 Notes payable on automobile secured financing 7,759,865 274,541 3.54 Other 299,221 4,213 1.41 ----------- --------- ------------- Total interest bearing liabilities $8,469,487 316,324 3.73% =========== --------- ------------- Net interest income and interest rate spread $583,811 5.88% ========= ============= Net yield on average interest earning assets 6.24% ============= (1) For the purpose of these computations, nonaccruing contracts are included in the average amounts outstanding. WFS FINANCIAL AND SUBSIDIARIES OTHER FINANCIAL DATA AND STATISTICAL SUMMARY Q4 2005 Q3 2005 Q2 2005 (Dollars in thousands, except per share amounts) ---------------------------------------------------------------------- Earnings: Net interest income $ 207,240 $ 192,226 $ 176,142 Provision for credit losses 56,313 42,529 40,224 Noninterest income 20,470 20,911 20,624 Noninterest expense 62,010 64,723 58,697 ------------ ------------ ------------ Income before taxes 109,387 105,885 97,845 Income taxes 44,511 42,471 38,528 ------------ ------------ ------------ Net income $ 64,876 $ 63,414 $ 59,317 ============ ============ ============ ---------------------------------------------------------------------- Equity: Earning per share - basic $ 1.58 $ 1.54 $ 1.44 Earning per share - diluted $ 1.58 $ 1.54 $ 1.44 Book value per share (period end) (1) $ 31.02 $ 29.42 $ 27.88 Stock price per share (period end) $ 76.15 $ 67.19 $ 50.71 Total equity to assets (1) 10.31% 10.02% 10.10% Return on average equity (1) 20.92% 21.57% 21.29% Average shares outstanding - diluted 41,088,380 41,087,701 41,066,461 ---------------------------------------------------------------------- Loan Portfolio: Automobile contracts purchased $ 1,635,411 $ 2,070,694 $ 2,013,622 Automobile contracts managed (period end) $12,772,740 $12,718,750 $12,307,454 Number of accounts managed (period end) 949,151 941,616 919,722 Average automobile contracts managed $12,748,302 $12,550,228 $12,019,325 ---------------------------------------------------------------------- Credit Quality: Delinquency rate (30+ days) 2.39% 2.15% 1.80% Repossessions to total contracts 0.08% 0.05% 0.05% Net chargeoffs (annualized) 1.77% 1.25% 1.15% Allowance to automobile contracts 2.44% 2.44% 2.51% ---------------------------------------------------------------------- Operations: Total assets $12,360,114 $12,063,308 $11,342,318 Noninterest expense to average contracts managed 1.95% 2.06% 1.95% WFS FINANCIAL AND SUBSIDIARIES OTHER FINANCIAL DATA AND STATISTICAL SUMMARY Q1 2005 Q4 2004 (Dollars in thousands, except per share amounts) ------------------------------------------------------- Earnings: Net interest income $ 169,333 $ 158,594 Provision for credit losses 49,262 58,961 Noninterest income 22,923 34,386 Noninterest expense 58,365 62,663 ------------ ----------- Income before taxes 84,629 71,356 Income taxes 32,883 27,673 ------------ ----------- Net income $ 51,746 $ 43,683 ============ =========== ------------------------------------------------------- Equity: Earning per share - basic $ 1.26 $ 1.06 Earning per share - diluted $ 1.26 $ 1.06 Book value per share (period end) (1) $ 26.45 $ 25.20 Stock price per share (period end) $ 43.15 $ 50.56 Total equity to assets (1) 9.33% 10.39% Return on average equity (1) 19.56% 17.27% Average shares outstanding - diluted 41,075,579 41,081,156 ------------------------------------------------------- Loan Portfolio: Automobile contracts purchased $ 1,782,414 $ 1,583,748 Automobile contracts managed (period end) $11,852,222 $11,560,890 Number of accounts managed (period end) 895,377 876,695 Average automobile contracts managed $11,702,544 $11,512,626 ------------------------------------------------------- Credit Quality: Delinquency rate (30+ days) 1.53% 2.24% Repossessions to total contracts 0.05% 0.07% Net chargeoffs (annualized) 1.66% 2.01% Allowance to automobile contracts 2.58% 2.64% ------------------------------------------------------- Operations: Total assets $11,637,467 $9,949,218 Noninterest expense to average contracts managed 1.99% 2.18% (1) Excludes other comprehensive income. WFS FINANCIAL INC AND SUBSIDIARIES CUMULATIVE STATIC POOL LOSS CURVES (UNAUDITED) At December 31, 2005 The following table sets forth the cumulative static pool losses by month for all outstanding public securitized pools: Period (1) 2002-2 2002-3 2002-4 2003-1 2003-2 2003-3 (3) 2003-4 2004-1 (3) ---------------------------------------------------------------------- 1 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2 0.00% 0.02% 0.02% 0.01% 0.00% 0.00% 0.01% 0.00% 3 0.03% 0.06% 0.07% 0.04% 0.02% 0.02% 0.03% 0.02% 4 0.10% 0.14% 0.16% 0.11% 0.06% 0.06% 0.08% 0.06% 5 0.18% 0.27% 0.26% 0.18% 0.14% 0.13% 0.14% 0.11% 6 0.32% 0.44% 0.38% 0.29% 0.25% 0.23% 0.21% 0.19% 7 0.49% 0.57% 0.50% 0.41% 0.36% 0.32% 0.28% 0.27% 8 0.66% 0.70% 0.61% 0.53% 0.48% 0.40% 0.35% 0.34% 9 0.82% 0.82% 0.78% 0.66% 0.59% 0.47% 0.44% 0.42% 10 0.96% 0.96% 0.94% 0.80% 0.70% 0.55% 0.54% 0.52% 11 1.10% 1.10% 1.08% 0.93% 0.80% 0.62% 0.61% 0.59% 12 1.26% 1.24% 1.28% 1.06% 0.89% 0.71% 0.73% 0.67% 13 1.39% 1.38% 1.43% 1.21% 0.98% 0.80% 0.83% 0.75% 14 1.51% 1.53% 1.59% 1.31% 1.08% 0.88% 0.93% 0.81% 15 1.68% 1.70% 1.77% 1.40% 1.20% 0.97% 1.03% 0.88% 16 1.83% 1.88% 1.92% 1.50% 1.31% 1.07% 1.09% 0.93% 17 1.99% 2.03% 2.05% 1.60% 1.41% 1.16% 1.19% 1.00% 18 2.16% 2.15% 2.16% 1.70% 1.53% 1.25% 1.24% 1.06% 19 2.31% 2.28% 2.25% 1.85% 1.66% 1.33% 1.30% 1.12% 20 2.46% 2.41% 2.37% 1.99% 1.76% 1.40% 1.36% 1.18% 21 2.60% 2.52% 2.49% 2.14% 1.87% 1.45% 1.42% 1.24% 22 2.72% 2.62% 2.62% 2.27% 1.95% 1.50% 1.47% 1.32% 23 2.86% 2.74% 2.73% 2.37% 2.02% 1.57% 1.54% 1.38% 24 2.95% 2.83% 2.84% 2.47% 2.09% 1.62% 1.62% 25 3.03% 2.96% 2.95% 2.57% 2.16% 1.69% 1.71% 26 3.13% 3.08% 3.06% 2.63% 2.21% 1.74% 1.78% 27 3.22% 3.21% 3.17% 2.68% 2.27% 1.80% 28 3.33% 3.31% 3.25% 2.73% 2.34% 1.87% 29 3.41% 3.41% 3.32% 2.78% 2.40% 1.93% 30 3.50% 3.48% 3.38% 2.85% 2.46% 31 3.58% 3.56% 3.43% 2.91% 2.53% 32 3.66% 3.62% 3.48% 2.93% 2.60% 33 3.73% 3.67% 3.55% 2.99% 34 3.78% 3.71% 3.61% 3.05% 35 3.84% 3.74% 3.63% 3.10% 36 3.86% 3.80% 3.69% 37 3.90% 3.84% 3.74% 38 3.93% 3.86% 3.79% 39 3.97% 3.91% 40 4.01% 3.95% 41 4.02% 3.99% 42 4.05% 43 4.08% 44 4.10% Prime Mix (2) 87% 85% 80% 80% 82% 84% 82% 82% Period (1) 2004-2 2004-3 2004-4 2005-1 2005-2 2005-3 --------------------------------------------------- 1 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2 0.00% 0.02% 0.00% 0.00% 0.00% 0.01% 3 0.03% 0.06% 0.04% 0.02% 0.02% 0.03% 4 0.07% 0.13% 0.09% 0.06% 0.07% 0.08% 5 0.15% 0.21% 0.15% 0.13% 0.13% 0.17% 6 0.24% 0.30% 0.23% 0.20% 0.22% 0.27% 7 0.33% 0.40% 0.30% 0.28% 0.30% 8 0.41% 0.50% 0.37% 0.38% 0.42% 9 0.51% 0.56% 0.45% 0.48% 0.55% 10 0.59% 0.64% 0.54% 0.60% 0.68% 11 0.65% 0.69% 0.65% 0.71% 12 0.70% 0.77% 0.75% 0.82% 13 0.76% 0.87% 0.85% 14 0.83% 0.94% 0.94% 15 0.91% 1.04% 1.05% 16 0.98% 1.15% 17 1.03% 1.23% 18 1.13% 19 1.22% 20 1.31% 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Prime Mix(2) 82% 81% 78% 78% 77% 76% (1) Represents the number of months since inception of the securitization. (2) Represents the original percentage of prime automobile contracts securitized within each pool. (3) Represents loans sold to Westcorp in whole loan sales and subsequently securitized by Westcorp. WFS manages these contracts pursuant to an agreement with Westcorp and the securitization trust. *T