**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D. C. 20549**

**FORM      10-Q**

**For      the quarter ended March 31, 2006**

**000-51493**

**White      River Capital, Inc.**

| **Indiana**                                                                                   | **35-1908796**                                       |
|----------------------------------------------------------------------------------------------------|-----------------------------------------------------------|
| (State                or other jurisdiction of incorporation                or organization)  | (I.R.S.                Employer Identification No.)  |

**1445      Brookville Way, Suite I**

**Indianapolis,      Indiana 46239**

**(317)      806-2166**

----

**-        INDEX **
**-**

|                          |                                                                                                                                                                  | **Page** |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
|                          |                                                                                                                                                                  |     |
| **PART                  I**   | **FINANCIAL                  INFORMATION**                                                                                                                            |     |
|                          |                                                                                                                                                                  |     |
| **Item                  1.**  | **Financial                  Statements**                                                                                                                             |     |
|                          |                                                                                                                                                                  |     |
|                          | **Unaudited                  Condensed Consolidated Balance Sheets as of March 31, 2006 and                  December 31, 2005**                                 | **1**    |
|                          |                                                                                                                                                                  |     |
|                          | **Unaudited                  Condensed Consolidated Statements of Operations for the quarters                  ended                  Mach 31, 2006 and 2005**        | **2**    |
|                          |                                                                                                                                                                  |     |
|                          | **Unaudited                  Condensed Consolidated Statements of Cash Flows for the quarters                  ended                  March 31, 2006 and 2005**  | **3**    |
|                          |                                                                                                                                                                  |     |
|                          | **Unaudited                  Condensed Consolidated Statements of Comprehensive Income for the                  quarters ended March 31, 2006 and 2005**    | **4**    |
|                          |                                                                                                                                                                  |     |
|                          | **Notes                  to Unaudited Condensed Consolidated Financial                  Statements**                                                                  | **5**    |
|                          |                                                                                                                                                                  |     |
| **Item                  2.**  | **Management’s                  Discussion and Analysis of Financial Condition** **and                  Results of Operations**                            | **15**   |
|                          |                                                                                                                                                                  |     |
| **Item                  4.**  | **Controls                  and Procedures**                                                                                                                          | **33**   |
|                          |                                                                                                                                                                  |     |
|                          |                                                                                                                                                                  |     |
| **PART                  II.** | **OTHER                  INFORMATION**                                                                                                                                |     |
|                          |                                                                                                                                                                  |     |
| **Item                  1.**  | **Legal                  Proceedings**                                                                                                                                | **34**   |
|                          |                                                                                                                                                                  |     |
| **Item                  6.**  | **Exhibits                  and Reports on Form 8-K**                                                                                                                 | **34**   |
|                          |                                                                                                                                                                  |     |
|                          |                                                                                                                                                                  |     |
| **SIGNATURES**                | **35**                                                                                                                                                                |

----

**PART      I**

**ITEM      1. FINANCIAL STATEMENTS.**

| **WHITE                  RIVER CAPITAL, INC. AND SUBSIDIARIES**            |   |                                |     |                                   |   |
|----------------------------------------------------------------------------|--------|-------------------------------------|----------|----------------------------------------|--------|
| **CONDENSED                  CONSOLIDATED BALANCE SHEETS**                 |   |                                |     |                                   |   |
| **(Unaudited)**                                                            |   |                                |     |                                   |   |
| **(Dollars                  in thousands)**                                |   |                                |     |                                   |   |
|                                                                       |   |                                |     |                                   |   |
| **ASSETS**                                                                 |   | **March                  31, 2006** |     | **December                  31, 2005** |   |
|                                                                       |   |                                |     |                                   |   |
| Cash                  and cash equivalents                                 |   | $                                   | 6,066    |                                   | $      | 6,878 |   |
| Restricted                  cash                                           |   |                                | 21,396   |                                   |   | 22,739 |   |
| Securitized                  finance receivables—net                 |   |                                | 76,816   |                                   |   | 109,506 |   |
| Finance                  receivables—net                             |   |                                | 73,837   |                                   |   | 70,784 |   |
| Beneficial                  interest in Master Trust                       |   |                                | 17,843   |                                   |   | 13,968 |   |
| Goodwill                                                                   |   |                                | 35,097   |                                   |   | 35,097 |   |
| Deferred                  tax assets                                       |   |                                | 5,286    |                                   |   | 4,707 |   |
| Other                  assets                                              |   |                                | 4,265    |                                   |   | 3,315 |   |
|                                                                       |   |                                |     |                                   |   |   |   |
| TOTAL                                                                      |   | $                                   | 240,606  |                                   | $      | 266,994 |   |
|                                                                       |   |                                |     |                                   |   |   |   |
|                                                                       |   |                                |     |                                   |   |   |   |
| **LIABILITIES                  AND SHAREHOLDERS’ EQUITY**            |   |                                |     |                                   |   |   |   |
|                                                                       |   |                                |     |                                   |   |   |   |
| LIABILITIES:                                                               |   |                                |     |                                   |   |   |   |
| Collateralized                  financing                                  |   | $                                   | 90,267   |                                   | $      | 122,293 |   |
| Line                  of credit                                            |   |                                | 56,000   |                                   |   | 51,500 |   |
| Secured                  note payable                                      |   |                                | 15,000   |                                   |   | 15,000 |   |
| Subordinated                  debentures                                   |   |                                | 7,700    |                                   |   | 7,700 |   |
| Note                  payable - Coastal Credit purchase holdback           |   |                                | -        |                                   |   | 3,840 |   |
| Accrued                  interest                                          |   |                                | 2,027    |                                   |   | 2,131 |   |
| Amounts                  due to Master Trust                               |   |                                | 7,396    |                                   |   | 7,417 |   |
| Creditor                  notes payable                                    |   |                                | 1,632    |                                   |   | 1,461 |   |
| Other                  payables and accrued expenses                       |   |                                | 2,644    |                                   |   | 2,291 |   |
|                                                                       |   |                                |     |                                   |   |   |   |
| Total                  liabilities                                         |   |                                | 182,666  |                                   |   | 213,633 |   |
|                                                                       |   |                                |     |                                   |   |   |   |
| SHAREHOLDERS’                  EQUITY:                               |   |                                |     |                                   |   |   |   |
| Preferred                  Stock, without par value, authorized            |   |                                |     |                                   |   |   |   |
| 3,000,000                  shares; none issued and outstanding             |   |                                | -        |                                   |   | - |   |
| Common                  Stock, without par value, authorized               |   |                                |     |                                   |   |   |   |
| 20,000,000                  shares; 3,813,155 and 3,810,155                |   |                                |     |                                   |   |   |   |
| issued                  and outstanding at March 31, 2006 and              |   |                                |     |                                   |   |   |   |
| December                  31, 2005, respectively                           |   |                                | 179,203  |                                   |   | 179,157 |   |
| Warrants                                                                   |   |                                | 534      |                                   |   | 534 |   |
| Accumulated                  other comprehensive income                    |   |                                | 16,700   |                                   |   | 13,305 |   |
| Accumulated                  deficit                                       |   |                                | (138,497 | )                                      |   | (139,635 | ) |
|                                                                       |   |                                |     |                                   |   |   |   |
| Total                  shareholders’ equity                          |   |                                | 57,940   |                                   |   | 53,361 |   |
|                                                                       |   |                                |     |                                   |   |   |   |
| TOTAL                                                                      |   | $                                   | 240,606  |                                   | $      | 266,994 |   |
|                                                                       |   |                                |     |                                   |   |   |   |
| See                  notes to condensed consolidated financial statements. |   |                                |     |                                   |   |   |   |

----

**Part        I     Financial Information**

| **WHITE                  RIVER CAPITAL, INC. AND SUBSIDIARIES**                                   |   |                                          |      |     |   |
|---------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|-----------|----------|--------|
| **CONDENSED                  CONSOLIDATED STATEMENTS OF OPERATIONS**                              |   |                                          |      |     |   |
| **(Unaudited)**                                                                                   |   |                                          |      |     |   |
| **(Dollars                  in thousands, except per share amounts)**                             |   |                                          |      |     |   |
|                                                                                              |   |                                          |      |     |   |
|                                                                                              |   | **Quarters                  Ended March 31,** |      |
|                                                                                              |   | **2006**                                      |      | **2005** |   |
| INTEREST:                                                                                         |   |                                          |      |     |   |
| Interest                  on receivables                                                          |   | $                                             | 10,032    |     | $      | 4,480 |   |
| Accretion                  and other interest                                                     |   |                                          | 710       |     |   | 1,550 |   |
|                                                                                              |   |                                          |      |     |   |   |   |
| Total                  interest income                                                            |   |                                          | 10,742    |     |   | 6,030 |   |
|                                                                                              |   |                                          |      |     |   |   |   |
| Interest                  expense                                                                 |   |                                          | (3,322    | )        |   | (4,023 | ) |
|                                                                                              |   |                                          |      |     |   |   |   |
| Net                  interest margin                                                              |   |                                          | 7,420     |     |   | 2,007 |   |
|                                                                                              |   |                                          |      |     |   |   |   |
| Provision                  for estimated credit losses                                            |   |                                          | (137      | )        |   | (449 | ) |
|                                                                                              |   |                                          |      |     |   |   |   |
| Net                  interest margin after provision for estimated credit                  losses |   |                                          | 7,283     |     |   | 1,558 |   |
|                                                                                              |   |                                          |      |     |   |   |   |
| OTHER                  REVENUES:                                                                  |   |                                          |      |     |   |   |   |
| Credit                  (charge) to Master Trust—net                                        |   |                                          | (2,388    | )        |   | (1,623 | ) |
| Other                  income                                                                     |   |                                          | 107       |     |   | 258 |   |
|                                                                                              |   |                                          |      |     |   |   |   |
| Total                  other revenues, net                                                        |   |                                          | (2,281    | )        |   | (1,365 | ) |
|                                                                                              |   |                                          |      |     |   |   |   |
| OTHER                  EXPENSES:                                                                  |   |                                          |      |     |   |   |   |
| Salaries                  and benefits                                                            |   |                                          | 1,995     |     |   | 92 |   |
| Third                  party servicing expense                                                    |   |                                          | 703       |     |   | 810 |   |
| Other                  operating expenses                                                         |   |                                          | 1,624     |     |   | 390 |   |
| Bankruptcy                  costs                                                                 |   |                                          | 75        |     |   | 109 |   |
|                                                                                              |   |                                          |      |     |   |   |   |
| Total                  other expenses                                                             |   |                                          | 4,397     |     |   | 1,401 |   |
|                                                                                              |   |                                          |      |     |   |   |   |
| INCOME                  (LOSS) BEFORE INCOME TAXES                                                |   |                                          | 605       |     |   | (1,208 | ) |
|                                                                                              |   |                                          |      |     |   |   |   |
| INCOME                  TAX BENEFIT                                                               |   |                                          | 532       |     |   | - |   |
|                                                                                              |   |                                          |      |     |   |   |   |
| NET                  INCOME (LOSS)                                                                |   | $                                             | 1,137     |     | $      | (1,208 | ) |
|                                                                                              |   |                                          |      |     |   |   |   |
| NET                  INCOME (LOSS) PER COMMON SHARE (BASIC)                                       |   | $                                             | 0.30      |     | $      | (3.89 | ) |
|                                                                                              |   |                                          |      |     |   |   |   |
| NET                  INCOME (LOSS) PER COMMON SHARE (DILUTED)                                     |   | $                                             | 0.29      |     | $      | (3.89 | ) |
|                                                                                              |   |                                          |      |     |   |   |   |
| BASIC                  WEIGHTED AVERAGE NUMBER                                                    |   |                                          |      |     |   |   |   |
| OF                  COMMON SHARES OUTSTANDING                                                     |   |                                          | 3,812,822 |     |   | 310,191 |   |
|                                                                                              |   |                                          |      |     |   |   |   |
| DILUTED                  WEIGHTED AVERAGE NUMBER                                                  |   |                                          |      |     |   |   |   |
| OF                  COMMON SHARES OUTSTANDING                                                     |   |                                          | 3,864,086 |     |   | 310,191 |   |
|                                                                                              |   |                                          |      |     |   |   |   |
|                                                                                              |   |                                          |      |     |   |   |   |
| See                  notes to condensed consolidated financial statements.                        |   |                                          |      |     |   |   |   |

----

**Part        I     Financial Information**

| **WHITE                  RIVER CAPITAL, INC. AND SUBSIDIARIES**                                                                                                                                        |   |                                                |    |     |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|---------|----------|--------|
| **CONDENSED                  CONSOLIDATED STATEMENTS OF CASH FLOWS**                                                                                                                                   |   |                                                |    |     |   |
| **(Unaudited)**                                                                                                                                                                                        |   |                                                |    |     |   |
| **(Dollars                  in thousands)**                                                                                                                                                            |   |                                                |    |     |   |
|                                                                                                                                                                                                   |   |                                                |    |     |   |
|                                                                                                                                                                                                   |   | **Quarters                  Ended March 31,**  |    |
|                                                                                                                                                                                                   |   | **2006**                                            |    | **2005** |   |
| CASH                  FLOWS FROM OPERATING ACTIVITIES:                                                                                                                                                 |   |                                                |    |     |   |
| Net                  income (loss)                                                                                                                                                                     |   | $                                                   | 1,137   |     | $      | (1,208 | ) |
| Adjustments                  to reconcile net income (loss) to net cash provided by (used in)                  operating                  activities:                                                  |   |                                                |    |     |   |   |   |
| Accretion                  of beneficial interest in Master Trust                                                                                                                                      |   |                                                | (480    | )        |   | (1,425 | ) |
| Provision                  for estimated credit losses                                                                                                                                                 |   |                                                | 137     |     |   | 449 |   |
| Amortization                  and depreciation                                                                                                                                                         |   |                                                | 123     |     |   | 6 |   |
| Amortization                  of discount and interest accrued on creditor notes payable                                                                                                               |   |                                                | 309     |     |   | 2,293 |   |
| Deferred                  income taxes                                                                                                                                                                 |   |                                                | (579    | )        |   | - |   |
| Changes                  in assets and liabilities:                                                                                                                                                    |   |                                                |    |     |   |   |   |
| Accrued                  interest receivable and other assets                                                                                                                                          |   |                                                | 1,888   |     |   | 840 |   |
| Amounts                  due to Master Trust                                                                                                                                                           |   |                                                | (21     | )        |   | 1,666 |   |
| Payment                  of creditor notes payable accrued interest                                                                                                                                    |   |                                                | -       |     |   | (91 | ) |
| Other                  payables and accrued expenses                                                                                                                                                   |   |                                                | 158     |     |   | 64 |   |
| Net                  cash provided by operating activities                                                                                                                                             |   |                                                | 2,672   |     |   | 2,594 |   |
|                                                                                                                                                                                                   |   |                                                |    |     |   |   |   |
| CASH                  FLOWS FROM INVESTING ACTIVITIES:                                                                                                                                                 |   |                                                |    |     |   |   |   |
| Principal                  payments on notes payable - Coastal Credit purchase                  holdback                                                                                               |   |                                                | (3,840  | )        |   | - |   |
| Purchase                  of securitized finance receivables                                                                                                                                           |   |                                                | -       |     |   | (45,436 | ) |
| Principal                  collections and recoveries on securitized finance                  receivables                                                                                              |   |                                                | 30,674  |     |   | 37,396 |   |
| Purchase                  of finance receivables                                                                                                                                                       |   |                                                | (16,574 | )        |   | - |   |
| Collections                  on finance receivables                                                                                                                                                    |   |                                                | 12,450  |     |   | - |   |
| Collections                  on beneficial interest in Master Trust                                                                                                                                    |   |                                                | -       |     |   | 2,491 |   |
| Change                  in restricted cash                                                                                                                                                             |   |                                                | 1,343   |     |   | (6,476 | ) |
| Capital                  expenditures                                                                                                                                                                  |   |                                                | (11     | )        |   | - |   |
| Net                  cash provided by (used in) investing activities                                                                                                                                   |   |                                                | 24,042  |     |   | (12,025 | ) |
|                                                                                                                                                                                                   |   |                                                |    |     |   |   |   |
| CASH                  FLOWS FROM FINANCING ACTIVITIES:                                                                                                                                                 |   |                                                |    |     |   |   |   |
| Proceeds                  from collateralized financings                                                                                                                                               |   |                                                | -       |     |   | 47,742 |   |
| Principal                  payments on collateralized financings                                                                                                                                       |   |                                                | (32,026 | )        |   | (36,197 | ) |
| Principal                  payments on creditor notes payable                                                                                                                                          |   |                                                | -       |     |   | (2,787 | ) |
| Borrowing                  on line of credit                                                                                                                                                           |   |                                                | 4,500   |     |   | - |   |
| Net                  cash provided by (used in) financing activities                                                                                                                                   |   |                                                | (27,526 | )        |   | 8,758 |   |
| DECREASE                  IN CASH AND CASH EQUIVALENTS                                                                                                                                                 |   |                                                | (812    | )        |   | (673 | ) |
| CASH                  AND CASH EQUIVALENTS—Beginning of period                                                                                                                                   |   |                                                | 6,878   |     |   | 3,745 |   |
| CASH                  AND CASH EQUIVALENTS—End of period                                                                                                                                         |   | $                                                   | 6,066   |     | $      | 3,072 |   |
|                                                                                                                                                                                                   |   |                                                |    |     |   |   |   |
| SUPPLEMENTAL                  DISCLOSURES OF CASH FLOW INFORMATION:                                                                                                                                    |   |                                                |    |     |   |   |   |
| Interest                  paid                                                                                                                                                                         |   | $                                                   | 3,174   |     | $      | 1,683 |   |
| Non                  cash items:                                                                                                                                                                       |   |                                                |    |     |   |   |   |
| Transfer                  of securitized finance receivables—net to other assets after the                  collateralized financing for securitization 2003-A was paid in                  full |   | $                                                   | 2,771   |     | $      | - |   |
|                                                                                                                                                                                                   |   |                                                |    |     |   |   |   |
| See                  notes to condensed consolidated financial statements.                                                                                                                             |   |                                                |    |     |   |   |   |

----

**Part      I     Financial Information**

| **WHITE                  RIVER CAPITAL, INC. AND SUBSIDIARIES**                |   |                                                    |   |     |   |
|--------------------------------------------------------------------------------|--------|---------------------------------------------------------|--------|----------|--------|
| **CONDENSED                  CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME** |   |                                                    |   |     |   |
| **(Unaudited)**                                                                |   |                                                    |   |     |   |
| **(Dollars                  in thousands)**                                    |   |                                                    |   |     |   |
|                                                                           |   |                                                    |   |     |   |
|                                                                           |   | **Three                  Months Ended March 31,**  |   |
|                                                                           |   | **2006**                                                |   | **2005** |   |
|                                                                           |   |                                                    |   |     |   |
| NET                  INCOME (LOSS)                                             |   | $                                                       | 1,137  |     | $      | (1,208 | ) |
|                                                                           |   |                                                    |   |     |   |   |   |
| OTHER                  COMPREHENSIVE INCOME:                                   |   |                                                    |   |     |   |   |   |
| Unrealized                  gain on beneficial interest in Master Trust        |   |                                                    | 3,875  |     |   | 3,840 |   |
| Reclassification                  adjustment for gain included in net income   |   |                                                    | (480   | )        |   | (1,425 | ) |
| Net                  other comprehensive income                                |   |                                                    | 3,395  |     |   | 2,415 |   |
|                                                                           |   |                                                    |   |     |   |   |   |
| COMPREHENSIVE                  INCOME (LOSS)                                   |   | $                                                       | 4,532  |     | $      | 1,207 |   |
|                                                                           |   |                                                    |   |     |   |   |   |
|                                                                           |   |                                                    |   |     |   |   |   |
| See                  notes to condensed consolidated financial statements.     |   |                                                    |   |     |   |   |   |

----

**Part        I     Financial Information**

**WHITE      RIVER CAPITAL, INC. AND SUBSIDIARIES **

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS **

**QUARTERS      ENDED MARCH 31, 2006 AND 2005**

**1.**
**BASIS      OF PRESENTATION**

**2.**
**GENERAL      DISCUSSION**

----

**Part        I     Financial Information**

**3.**
**NET      ASSETS OF COLLATERALIZED FINANCINGS**

|                                                                                                                                              |   | **March                  31, 2006** |    | **December                  31, 2005** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|---------|----------------------------------------|--------|
|                                                                                                                                              |   |                                |    |                                   |   |
| Securitized                  finance receivables—net                                                                                        |   | $                                   | 76.8    |                                   | $      | 109.5 |   |
| Restricted                  cash                                                                                                                  |   |                                | 21.4    |                                   |   | 22.7 |   |
| Receivable                  from servicer included in other assets                                                                                |   |                                | 0.3     |                                   |   | 1.1 |   |
| Collateralized                  financings                                                                                                        |   |                                | (90.3   | )                                      |   | (122.3 | ) |
| Series                  2003-A excess collateral (1)                                                                                              |   |                                | -  |                                   |   | (2.7 | ) |
| Accrued                  interest payable                                                                                                         |   |                                | (0.4    | )                                      |   | (0.5 | ) |
| Other                  payables and accrued expenses                                                                                              |   |                                | (0.4    | )                                      |   | (0.4 | ) |
|                                                                                                                                              |   |                                |    |                                   |   |   |   |
| Amounts                  due to master trust                                                                                                      |   | $                                   | 7.4     |                                   | $      | 7.4 |   |
|                                                                                                                                              |   |                                |    |                                   |   |   |   |
|                                                                                                                                              |   |                                |    |                                   |   |   |   |
| (1)                  On March 8, 2006 the 2003-A note was paid in full and no longer                  contributes to amounts due to master trust. |   |                                |    |                                   |   |   |   |

**4.**
**SECURITIZED      FINANCE RECEIVABLES—NET**

----

**Part I     Financial      Information**

|                                                                  |   | **March                  31, 2006** |   | **December                  31, 2005** |   |
|-----------------------------------------------------------------------|--------|-------------------------------------|--------|----------------------------------------|--------|
|                                                                  |   |                                |   |                                   |   |
| Principal                  balance of securitized finance receivables |   | $                                   | 81,079 |                                   | $      | 115,031 |   |
| Accrued                  interest receivable                          |   |                                | 604    |                                   |   | 978 |   |
| Allowance                  for credit losses                          |   |                                | (4,867 | )                                      |   | (6,503 | ) |
|                                                                  |   |                                |   |                                   |   |   |   |
| Securitized                  finance receivables—net            |   | $                                   | 76,816 |                                   | $      | 109,506 |   |

|                                                              |   | **Quarters                  Ended** |   |
|-------------------------------------------------------------------|--------|-------------------------------------|--------|
|                                                              |   | **March                  31,**      |   | **December                  31,** |   | **March                  31,** |   |
|                                                              |   | **2006**                            |   | **2005** |   | **2005** |   |
|                                                              |   |                                |   |   |   |   |   |
| Balance                  at the beginning of period               |   | $                                   | 6,503  |   | $ | 13,980 |   | $ | 11,722 |   |
| Allowance                  at purchase                            |   |                                | -      |   |   | - |   |   | 2,669 |   |
| Charge-offs                                                       |   |                                | (4,251 | ) |   | (5,227 | ) |   | (5,697 | ) |
| Recoveries                                                        |   |                                | 3,549  |   |   | 3,296 |   |   | 3,615 |   |
| Provision                  (recovery) for estimated credit losses |   |                                | (934   | ) |   | (5,546 | ) |   | 449 |   |
|                                                              |   |                                |   |   |   |   |   |   |   |   |
| Balance                  at the end of the period                 |   | $                                   | 4,867  |   | $ | 6,503 |   | $ | 12,758 |   |

**5.**
**COLLATERALIZED      FINANCINGS**

----

**Part I     Financial      Information**

|                              |   | **Note** |   | **Initial                  Note** |   | **March                  31,** |   | **December                  31,** |   |
|-----------------------------------|--------|----------|--------|-----------------------------------|--------|--------------------------------|--------|-----------------------------------|--------|
| **Notes                  Series** |   | **Rate** |   | **Amount**                        |   | **2006**                       |   | **2005**                          |   |
|                              |   |     |   |                              |   |                           |   |                              |   |
| Series                  2003-A    |   |     | 3.95   | %                                 | $      | 120,327                        |   | $                                 | -      |   | $ | 2,072 |   |
| Series                  2004-A1   |   |     | 4.15   |                              |   | 29,485                         |   |                              | 2,302  |   |   | 3,743 |   |
| Series                  2004-A2   |   |     | 4.55   |                              |   | 29,298                         |   |                              | 3,468  |   |   | 5,317 |   |
| Series                  2004-B    |   |     | 5.02   |                              |   | 25,896                         |   |                              | 4,157  |   |   | 5,972 |   |
| Series                  2004-C    |   |     | 4.89   |                              |   | 51,992                         |   |                              | 13,354 |   |   | 18,636 |   |
| Series                  2005-A    |   |     | 4.49   |                              |   | 47,742                         |   |                              | 15,733 |   |   | 20,730 |   |
| Series                  2005-B    |   |     | 4.69   |                              |   | 50,684                         |   |                              | 21,123 |   |   | 27,445 |   |
| Series                  2005-C    |   |     | 5.40   |                              |   | 54,933                         |   |                              | 30,130 |   |   | 38,378 |   |
|                              |   |     |   |                              |   |                           |   |                              |   |   |   |   |   |
|                              |   |     |   |                              | $      | 410,357                        |   | $                                 | 90,267 |   | $ | 122,293 |   |

**6.**
**BENEFICIAL      INTEREST IN MASTER TRUST**

|   | · | *Credit                Loss Assumptions*—Prior                to December 31, 2005, estimated net credit losses were calculated                using                the loss to liquidation methodology for each securitized pool. The                loss to                liquidation methodology takes into account the current loss level                of each                securitized pool and its “pool factor,” which is the percentage remaining                of the original pool balance. Dividing the current cumulative net                loss for                each pool by its corresponding pool factor, future projected cumulative                net losses were calculated. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | *Liquidation                recovery*                -                consists of net auction proceeds, deficiency recoveries by the servicer,                and scheduled payments from defaulted accounts. On a monthly basis                for                each pool, liquidation recovery cash dollars as a percentage of gross                default dollars has been calculated for the previous year (this is                typically in the 50-60% range). This twelve month average for each                pool                will be used to project monthly liquidation recovery by multiplying                this                value by the monthly estimated gross default dollars                projected. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Part I     Financial      Information**

|   | o | *Bankruptcy                recovery*                -                consists of cash recovered from accounts charged off and in bankruptcy                status. Bankruptcy cash flows are somewhat independent of default                rates                due to bankruptcy court involvement and the latitude allowed debtors                during the bankruptcy process. In recent months, UAC has observed                a                reasonably predictable cash flow stream from bankruptcy payments                in each                securitized pool. This cash flow stream will, however, eventually                expire                as the bankruptcy cases are dismissed from the various courts with                either                a successful or non-successful outcome. A previous twelve month average                of                bankruptcy cash flows is calculated for each pool. This value is                then                reduced on a straight line basis over either a 30 or 42 month                period. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Prepayment      Assumptions*

*Discount      Rate Assumptions*

**7.**
**FINANCE      RECEIVABLES - NET**

----

**Part I     Financial      Information**

|                                                                        |   | **March                  31, 2006** |    | **December                  31, 2005** |   |
|-----------------------------------------------------------------------------|--------|-------------------------------------|---------|----------------------------------------|--------|
|                                                                        |   |                                |    |                                   |   |
| Finance                  receivables, gross                                 |   | $                                   | 101,340 |                                   | $      | 97,820 |   |
| Unearned                  interest                                          |   |                                | (9,959  | )                                      |   | (9,868 | ) |
| Finance                  receivables, net of unearned finance charge income |   |                                | 91,381  |                                   |   | 87,952 |   |
|                                                                        |   |                                |    |                                   |   |   |   |
| Accretable                  unearned acquisition discounts and fees         |   |                                | (11,628 | )                                      |   | (11,137 | ) |
| Finance                  receivables, net of discounts and fees             |   |                                | 79,753  |                                   |   | 76,815 |   |
|                                                                        |   |                                |    |                                   |   |   |   |
| Allowance                  for loan losses                                  |   |                                | (5,916  | )                                      |   | (6,031 | ) |
|                                                                        |   |                                |         |                                   |   |  |   |
| Finance                  receivables, net                                   |   | $                                   | 73,837  |                                   | $      | 70,784 |   |

|                                                                                                                                                                           |   | **Quarters                  Ended**  |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|--------|
|                                                                                                                                                                           |   | **March                  31,**            |   | **December                  31,** |   |
|                                                                                                                                                                           |   | **2006**                                  |   | **2005** |   |
|                                                                                                                                                                           |   |                                      |   |   |   |
| Balance                  at beginning of period                                                                                                                                |   | $                                         | 6,031  |   | $ | 5,200 |   |
| Charge-offs,                  net of recoveries (1)                                                                                                                            |   |                                      | (1,186 | ) |   | (407 | ) |
| Provision                  for estimated credit losses                                                                                                                         |   |                                      | 1,071  |   |   | 1,238 |   |
|                                                                                                                                                                           |   |                                      |   |   |   |   |   |
| Balance                  at the end of the period                                                                                                                              |   | $                                         | 5,916  |   | $ | 6,031 |   |
|                                                                                                                                                                           |   |                                      |   |   |   |   |   |
| Net                  charge offs                                                                                                                                               |   | $                                         | 1,186  |   | $ | 407 |   |
| Finance                  receivables, net of unearned finance charges                                                                                                          |   | $                                         | 91,381 |   | $ | 87,952 |   |
|                                                                                                                                                                           |   |                                      |   |   |   |   |   |
| Allowance                  for loan losses as a percent of finance receivables, net of unearned                  finance charges                                               |   |                                      | 6.47   | % |   | 6.86 | % |
|                                                                                                                                                                           |   |                                      |   |   |   |   |   |
| Annualized                  net charge offs as a percent of finance receivables, net of unearned                  finance charges                                              |   |                                      | 5.19   | % |   | 1.85 | % |
|                                                                                                                                                                           |   |                                      |   |   |   |   |   |
| Allowance                  for loan losses as a percent of annualized net charge offs                                                                                          |   |                                      | 124.70 | % |   | 370.45 | % |
|                                                                                                                                                                           |   |                                      |   |   |   |   |   |
| (1)                  Charge-offs do not include loans subject to SOP 03-3 which were                  charged                  off during the quarter ended December 31, 2005. |   |                                      |   |   |   |   |   |

----

**Part I     Financial      Information**

**8.**
**OTHER      ASSETS**

|                                                                 |   |                                |   |                                   |   |
|----------------------------------------------------------------------|--------|-------------------------------------|--------|----------------------------------------|--------|
|                                                                 |   | **March                  31, 2006** |   | **December                  31, 2005** |   |
|                                                                 |   |                                |   |                                   |   |
| Receivable                  from servicer                            |   | $                                   | 343    |                                   | $      | 1,124 |   |
| Prepaid                  expenses                                    |   |                                | 590    |                                   |   | 712 |   |
| Property,                  equipment and leasehold improvements, net |   |                                | 555    |                                   |   | 601 |   |
| Dealer                  premium rebate receivable, net               |   |                                | 90     |                                   |   | 338 |   |
| Receivables                  held for investment, net                |   |                                | 2,397  |                                   |   | 269 |   |
| Other                                                                |   |                                | 290    |                                   |   | 271 |   |
| Total                  other assets                                  |   | $                                   | 4,265  |                                   | $      | 3,315 |   |

**9.**
**CREDITOR      NOTES PAYABLE**

|                                                |   | **March                  31, 2006**  |   | **December                  31, 2005**  |   |
|-----------------------------------------------------|--------|-------------------------------------------|--------|----------------------------------------------|--------|
|                                                |   | **Carrying**                              |   | **Contractual**                              |   | **Total** |   | **Carrying** |   | **Contractual** |   | **Total** |   |
|                                                |   | **Value**                                 |   | **Remaining**                                |   | **Contractual** |   | **Value** |   | **Remaining** |   | **Contractual** |   |
|                                                |   |                                      |   | **Debt                  Not**                |   | **Remaining** |   |   |   | **Debt                  Not** |   | **Remaining** |   |
|                                                |   |                                      |   | **Owned                  by**                |   | **Debt** |   |   |   | **Owned                  by** |   | **Debt** |   |
|                                                |   |                                      |   | **White                  River**             |   |   |   |   |   | **White                  River** |   |   |   |
| Restructured                  debt:                 |   |                                      |   |                                         |   |   |   |   |   |   |   |   |   |
| Class                  2A general unsecured claims  |   | $                                         | 180    |                                         | $      | 405 |   | $ | 1,330 |   | $ | 164 |   | $ | 405 |   | $ | 1,330 |   |
| Class                  2A1 general unsecured claims |   |                                      | -      |                                         |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Restructured                  senior notes          |   |                                      | -      |                                         |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Restructured                  subordinated notes    |   |                                      | 1,451  |                                         |   | 5,041 |   |   | 46,383 |   |   | 1,296 |   |   | 5,041 |   |   | 46,383 |   |
| Senior                  accrual notes               |   |                                      | -      |                                         |   | - |   |   | 4,106 |   |   | - |   |   | - |   |   | 4,106 |   |
| Subordinated                  accrual notes         |   |                                      | 1      |                                         |   | 431 |   |   | 3,964 |   |   | 1 |   |   | 431 |   |   | 3,964 |   |
|                                                |   |                                      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                  creditor notes payable       |   | $                                         | 1,632  |                                         | $      | 5,877 |   | $ | 55,783 |   | $ | 1,461 |   | $ | 5,877 |   | $ | 55,783 |   |

**10.**
**INCOME      TAXES**

----

**Part I     Financial      Information**

**11.**
**BUSINESS      SEGMENT INFORMATION**

| **For                  The Quarter Ended March 31, 2006**                                                                               |   | **UAC** |   | **Coastal                  Credit** |   | **Corporate                  and Other** |   | **Consolidated** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|-------------------------------------|--------|------------------------------------------|--------|------------------|--------|
|                                                                                                                                    |   |    |   |                                |   |                                     |   |             |   |
| Total                  interest income                                                                                                  |   | $       | 3,885  |                                | $      | 6,847                                    |   | $                | 10     |   | $ | 10,742 |   |
|                                                                                                                                    |   |    |   |                                |   |                                     |   |             |   |   |   |   |   |
| Interest                  expense                                                                                                       |   |    | (1,625 | )                                   |   | (1,198                                   | )      |             | (499   | ) |   | (3,322 | ) |
|                                                                                                                                    |   |    |   |                                |   |                                     |   |             |   |   |   |   |   |
| Net                  interest margin                                                                                                    |   |    | 2,260  |                                |   | 5,649                                    |   |             | (489   | ) |   | 7,420 |   |
|                                                                                                                                    |   |    |   |                                |   |                                     |   |             |   |   |   |   |   |
| Recovery                  (provision) for estimated credit losses                                                                       |   |    | 934    |                                |   | (1,071                                   | )      |             | -      |   |   | (137 | ) |
|                                                                                                                                    |   |    |   |                                |   |                                     |   |             |   |   |   |   |   |
| Net                  interest margin (deficit) after recovery (provision) for estimated                  credit                  losses |   |    | 3,194  |                                |   | 4,578                                    |   |             | (489   | ) |   | 7,283 |   |
|                                                                                                                                    |   |    |   |                                |   |                                     |   |             |   |   |   |   |   |
| Total                  other revenues (charges), net                                                                                    |   |    | (2,187 | )                                   |   | (94                                      | )      |             | -      |   |   | (2,281 | ) |
|                                                                                                                                    |   |    |   |                                |   |                                     |   |             |   |   |   |   |   |
| Total                  other expenses                                                                                                   |   |    | 1,281  |                                |   | 2,603                                    |   |             | 513    |   |   | 4,397 |   |
|                                                                                                                                    |   |    |   |                                |   |                                     |   |             |   |   |   |   |   |
| Income                  (loss) before income taxes                                                                                      |   | $       | (274   | )                                   | $      | 1,881                                    |   | $                | (1,002 | ) | $ | 605 |   |

----

**Part I     Financial      Information**

|                                 |   | **March                  31,** |    | **December                  31,** |   |
|--------------------------------------|--------|--------------------------------|---------|-----------------------------------|--------|
|                                 |   | **2006**                       |    | **2005**                          |   |
|                                 |   |                           |    |                              |   |
| Corporate                  and other |   | $                              | 6,653   |                              | $      | 6,918 |   |
| Coastal                  Credit      |   |                           | 110,841 |                              |   | 108,165 |   |
| UAC                                  |   |                           | 123,112 |                              |   | 151,911 |   |
|                                 |   |                           |    |                              |   |   |   |
|                                 |   | $                              | 240,606 |                              | $      | 266,994 |   |

**12.**
**STOCK      BASED COMPENSATION**

**13.**
**EARNINGS      PER SHARE**

|                                                                    |   | **Quarters                  Ended March 31,**  |      |
|-------------------------------------------------------------------------|--------|-----------------------------------------------------|-----------|
|                                                                    |   | **2006**                                            |      | **2005** |   |
|                                                                    |   |                                                |      |   |   |
| Net                  Income (Loss) in thousands                         |   | $                                                   | 1,137     |   | $ | (1,208 | ) |
|                                                                    |   |                                                |      |   |   |   |   |
| Weighted                  average shares outstanding                    |   |                                                | 3,812,822 |   |   | 310,191 |   |
|                                                                    |   |                                                |      |   |   |   |   |
| Incremental                  shares from assumed conversions:           |   |                                                |      |   |   |   |   |
| Warrants                                                                |   |                                                | 51,264    |   |   | - |   |
|                                                                    |   |                                                |           |   |   |  |   |
| Weighted                  average shares and assumed incremental shares |   |                                                | 3,864,086 |   |   | 310,191 |   |
|                                                                    |   |                                                |      |   |   |   |   |
| Earnings                  per share:                                    |   |                                                |      |   |   |   |   |
|                                                                    |   |                                                |      |   |   |   |   |
| Basic                                                                   |   | $                                                   | 0.30      |   | $ | (3.89 | ) |
|                                                                    |   |                                                |      |   |   |   |   |
| Diluted                                                                 |   | $                                                   | 0.29      |   | $ | (3.89 | ) |

----

**Part I     Financial      Information**

**14.**
**COMMITMENTS      AND CONTINGENCIES**

----

**Part I     Financial      Information**

**ITEM      2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND      RESULTS OF OPERATIOINS.  **

**General**

**C**
**ritical      Accounting Policies**

***Net      Assets of Collateralized Financings***

***Valuation      of Beneficial Interest in Master Trust***

----

**Part I     Financial        Information**

***Income      Recognition - Finance Receivables***

***Finance      Receivables***

***Allowance      for Loan Losses - Finance Receivables***

***Charge      off Policy - Finance Receivables***

----

**Part I     Financial        Information**

***Income      Taxes***

----

**Part I     Financial        Information**

**Results      of Operations**

***Executive      Summary***

*The      Quarter*
*      Ended March 31, 2006 Compared to the Quarter Ended March 31,      2005*

**Discussion      of Results**

|                                                                                              |   | **Quarters                  Ended March 31,**  |   |
|---------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|--------|
|                                                                                              |   | **2006**                                            |   | **2005** |   |
| INTEREST:                                                                                         |   |                                                |   |   |   |
| Interest                  on receivables                                                          |   | $                                                   | 10,032 |   | $ | 4,480 |   |
| Accretion                  and other interest                                                     |   |                                                | 710    |   |   | 1,550 |   |
|                                                                                              |   |                                                |   |   |   |   |   |
| Total                  interest income                                                            |   |                                                | 10,742 |   |   | 6,030 |   |
|                                                                                              |   |                                                |   |   |   |   |   |
| Interest                  expense                                                                 |   |                                                | (3,322 | ) |   | (4,023 | ) |
|                                                                                              |   |                                                |   |   |   |   |   |
| Net                  interest margin                                                              |   |                                                | 7,420  |   |   | 2,007 |   |
|                                                                                              |   |                                                |   |   |   |   |   |
| Provision                  for estimated credit losses                                            |   |                                                | (137   | ) |   | (449 | ) |
|                                                                                              |   |                                                |   |   |   |   |   |
| Net                  interest margin after provision for estimated credit                  losses |   |                                                | 7,283  |   |   | 1,558 |   |
|                                                                                              |   |                                                |   |   |   |   |   |
| OTHER                  REVENUES:                                                                  |   |                                                |   |   |   |   |   |
| Credit                  (charge) to Master Trust—net                                        |   |                                                | (2,388 | ) |   | (1,623 | ) |
| Other                  income                                                                     |   |                                                | 107    |   |   | 258 |   |
|                                                                                              |   |                                                |   |   |   |   |   |
| Total                  other revenues, net                                                        |   |                                                | (2,281 | ) |   | (1,365 | ) |
|                                                                                              |   |                                                |   |   |   |   |   |
| OTHER                  EXPENSES:                                                                  |   |                                                |   |   |   |   |   |
| Salaries                  and benefits                                                            |   |                                                | 1,995  |   |   | 92 |   |
| Third                  party servicing expense                                                    |   |                                                | 703    |   |   | 810 |   |
| Operating                  expenses                                                               |   |                                                | 1,624  |   |   | 390 |   |
| Bankruptcy                  costs                                                                 |   |                                                | 75     |   |   | 109 |   |
|                                                                                              |   |                                                |   |   |   |   |   |
| Total                  other expenses                                                             |   |                                                | 4,397  |   |   | 1,401 |   |
|                                                                                              |   |                                                |   |   |   |   |   |
| INCOME                  (LOSS) BEFORE INCOME TAXES                                                |   |                                                | 605    |   |   | (1,208 | ) |
|                                                                                              |   |                                                |   |   |   |   |   |
| INCOME                  TAXES BENEFIT                                                             |   |                                                | 532    |   |   | - |   |
|                                                                                              |   |                                                |   |   |   |   |   |
| NET                  INCOME (LOSS)                                                                |   | $                                                   | 1,137  |   | $ | (1,208 | ) |

----

**Part I     Financial        Information**

***The      Quarter Ended March 31, 2006 Compared to the Quarter Ended March 31, 2005 -      Consolidated***

----

**Part I     Financial        Information**

----

**Part I     Financial        Information**

**Discussion      of Results of Operations of UAC**

|                                                                                                         |   | **Quarters                  Ended March 31,**  |   |
|--------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|--------|
|                                                                                                         |   | **2006**                                            |   | **2005** |   |
| INTEREST:                                                                                                    |   |                                                |   |   |   |
| Interest                  on receivables                                                                     |   | $                                                   | 3,185  |   | $ | 4,480 |   |
| Accretion                  and other interest                                                                |   |                                                | 700    |   |   | 1,550 |   |
|                                                                                                         |   |                                                |   |   |   |   |   |
| Total                  interest income                                                                       |   |                                                | 3,885  |   |   | 6,030 |   |
|                                                                                                         |   |                                                |   |   |   |   |   |
| Interest                  expense                                                                            |   |                                                | (1,625 | ) |   | (4,023 | ) |
|                                                                                                         |   |                                                |   |   |   |   |   |
| Net                  interest margin                                                                         |   |                                                | 2,260  |   |   | 2,007 |   |
|                                                                                                         |   |                                                |   |   |   |   |   |
| Recovery                  (provision) for estimated credit losses                                            |   |                                                | 934    |   |   | (449 | ) |
|                                                                                                         |   |                                                |   |   |   |   |   |
| Net                  interest margin after recovery (provision) for estimated credit                  losses |   |                                                | 3,194  |   |   | 1,558 |   |
|                                                                                                         |   |                                                |   |   |   |   |   |
| OTHER                  REVENUES:                                                                             |   |                                                |   |   |   |   |   |
| Credit                  (charge) to Master Trust—net                                                   |   |                                                | (2,388 | ) |   | (1,623 | ) |
| Other                  income                                                                                |   |                                                | 201    |   |   | 258 |   |
|                                                                                                         |   |                                                |   |   |   |   |   |
| Total                  other revenues, net                                                                   |   |                                                | (2,187 | ) |   | (1,365 | ) |
|                                                                                                         |   |                                                |   |   |   |   |   |
| OTHER                  EXPENSES:                                                                             |   |                                                |   |   |   |   |   |
| Salaries                  and benefits                                                                       |   |                                                | 119    |   |   | 92 |   |
| Third                  party servicing expense                                                               |   |                                                | 703    |   |   | 810 |   |
| Operating                  expenses                                                                          |   |                                                | 384    |   |   | 390 |   |
| Bankruptcy                  costs                                                                            |   |                                                | 75     |   |   | 109 |   |
|                                                                                                         |   |                                                |   |   |   |   |   |
| Total                  other expenses                                                                        |   |                                                | 1,281  |   |   | 1,401 |   |
|                                                                                                         |   |                                                |   |   |   |   |   |
| LOSS                  BEFORE INCOME TAXES                                                                    |   |                                                | (274   | ) |   | (1,208 | ) |
|                                                                                                         |   |                                                |   |   |   |   |   |
| INCOME                  TAXES                                                                                |   |                                                | -      |   |   | - |   |
|                                                                                                         |   |                                                |   |   |   |   |   |
| NET                  LOSS                                                                                    |   | $                                                   | (274   | ) | $ | (1,208 | ) |

***The      Quarter Ended March 31, 2006 Compared to the Quarter Ended March 31, 2005 -      UAC***

----

**Part I     Financial        Information**

|                                                                            |   | **Quarters                  Ended March 31,** |   |
|---------------------------------------------------------------------------------|--------|-----------------------------------------------|--------|
|                                                                            |   | **2006**                                      |   | **2005** |   |
|                                                                            |   |                                          |   |   |   |
| UAC                  discount accretion for beneficial interest in Master Trust |   | $                                             | 480    |   | $ | 1,425 |   |
| UAC                  interest on restricted cash balances                       |   |                                          | 220    |   |   | 125 |   |
|                                                                            |   |                                          |   |   |   |   |   |
| UAC                  accretion and other interest income                        |   | $                                             | 700    |   | $ | 1,550 |   |

----

**Part I     Financial        Information**

**Discussion      of Results of Operations of Coastal Credit**

|                                                                                              |   | **Quarter                  Ended March 31,** |   |
|---------------------------------------------------------------------------------------------------|--------|----------------------------------------------|--------|
|                                                                                              |   | **2006**                                     |   |
| INTEREST:                                                                                         |   |                                         |   |
| Interest                  on receivables                                                          |   | $                                            | 6,847  |   |
|                                                                                              |   |                                         |   |   |
| Interest                  expense                                                                 |   |                                         | (1,198 | ) |
|                                                                                              |   |                                         |   |   |
| Net                  interest margin                                                              |   |                                         | 5,649  |   |
|                                                                                              |   |                                         |   |   |
| Provision                  for estimated credit losses                                            |   |                                         | (1,071 | ) |
|                                                                                              |   |                                         |   |   |
| Net                  interest margin after provision for estimated credit                  losses |   |                                         | 4,578  |   |
|                                                                                              |   |                                         |   |   |
| OTHER                  REVENUES:                                                                  |   |                                         |   |   |
| Other                  income                                                                     |   |                                         | (94    | ) |
|                                                                                              |   |                                         |   |   |
| Total                  other revenues (charges), net                                              |   |                                         | (94    | ) |
|                                                                                              |   |                                         |   |   |
| OTHER                  EXPENSES:                                                                  |   |                                         |   |   |
| Salaries                  and benefits                                                            |   |                                         | 1,804  |   |
| Operating                  expenses                                                               |   |                                         | 799    |   |
|                                                                                              |   |                                         |   |   |
| Total                  other expenses                                                             |   |                                         | 2,603  |   |
|                                                                                              |   |                                         |   |   |
| INCOME                  BEFORE INCOME TAXES                                                       |   |                                         | 1,881  |   |
|                                                                                              |   |                                         |   |   |
| INCOME                  TAXES                                                                     |   |                                         | -      |   |
|                                                                                              |   |                                         |   |   |
| NET                  INCOME                                                                       |   | $                                            | 1,881  |   |

**Quarter      Ended March 31, 2006 - Coastal Credit**

----

**Part I     Financial        Information**

**Discussion      of Results of Operations of Corporate and Other**

|                                                                                                        |   | **Quarter                  Ended March 31,** |   |
|-------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|--------|
|                                                                                                        |   | **2006**                                     |   |
| INTEREST:                                                                                                   |   |                                         |   |
| Interest                  on receivables                                                                    |   | $                                            | -      |   |
| Accretion                  and other interest                                                               |   |                                         | 10     |   |
|                                                                                                        |   |                                         |   |   |
| Total                  interest income                                                                      |   |                                         | 10     |   |
|                                                                                                        |   |                                         |   |   |
| Interest                  expense                                                                           |   |                                         | (499   | ) |
|                                                                                                        |   |                                         |   |   |
| Net                  interest margin                                                                        |   |                                         | (489   | ) |
|                                                                                                        |   |                                         |   |   |
| Provision                  for estimated credit losses                                                      |   |                                         | -      |   |
|                                                                                                        |   |                                         |   |   |
| Net                  interest margin (deficit) after provision for estimated credit                  losses |   |                                         | (489   | ) |
|                                                                                                        |   |                                         |   |   |
| OTHER                  REVENUES:                                                                            |   |                                         |   |   |
|                                                                                                        |   |                                         |   |   |
| Total                  other revenues, net                                                                  |   |                                         | -      |   |
|                                                                                                        |   |                                         |   |   |
| OTHER                  EXPENSES:                                                                            |   |                                         |   |   |
| Salaries                  and benefits                                                                      |   |                                         | 72     |   |
| Operating                  expenses                                                                         |   |                                         | 441    |   |
|                                                                                                        |   |                                         |   |   |
| Total                  other expenses                                                                       |   |                                         | 513    |   |
|                                                                                                        |   |                                         |   |   |
| LOSS                  BEFORE INCOME TAXES                                                                   |   |                                         | (1,002 | ) |
|                                                                                                        |   |                                         |   |   |
| INCOME                  TAXES                                                                               |   |                                         | 532    |   |
|                                                                                                        |   |                                         |   |   |
| NET                  LOSS                                                                                   |   | $                                            | (470   | ) |

***The      Quarter***
**      Ended March, 2006 - Corporate and Other**

**Financial      Condition as of **
**March      31, 2006 and December 31, 2005**

***Securitized      Finance Receivables, Net***

----

**Part I     Financial        Information**

|                                                                                                                                                                                                   |   | **March                  31, 2006** |    | **December                  31, 2005** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|---------|----------------------------------------|--------|
|                                                                                                                                                                                                   |   |                                |    |                                   |   |
| **UAC                  and Subsidiary Receivables Held for Investment**                                                                                                                                |   |                                |    |                                   |   |
| UAC                  Owned                                                                                                                                                                             |   | $                                   | 309     |                                   | $      | 336 |   |
| UACSC                  Owned (1)                                                                                                                                                                       |   |                                | 2,149   |                                   |   | - |   |
|                                                                                                                                                                                                   |   |                                | 2,458   |                                   |   | 336 |   |
|                                                                                                                                                                                                   |   |                                |    |                                   |   |   |   |
| **Securitized                  Finance Receivables (2)**                                                                                                                                               |   |                                |    |                                   |   |   |   |
| 2003-A                                                                                                                                                                                                 |   |                                | -       |                                   |   | 4,167 |   |
| 2004-A1                                                                                                                                                                                                |   |                                | 2,253   |                                   |   | 3,795 |   |
| 2004-A2                                                                                                                                                                                                |   |                                | 2,975   |                                   |   | 4,712 |   |
| 2004-B                                                                                                                                                                                                 |   |                                | 3,593   |                                   |   | 5,356 |   |
| 2004-C                                                                                                                                                                                                 |   |                                | 11,730  |                                   |   | 16,837 |   |
| 2005-A                                                                                                                                                                                                 |   |                                | 14,035  |                                   |   | 19,042 |   |
| 2005-B                                                                                                                                                                                                 |   |                                | 19,090  |                                   |   | 25,405 |   |
| 2005-C                                                                                                                                                                                                 |   |                                | 27,403  |                                   |   | 35,717 |   |
|                                                                                                                                                                                                   |   |                                | 81,079  |                                   |   | 115,031 |   |
|                                                                                                                                                                                                   |   |                                |    |                                   |   |   |   |
| **Off-Balance                  Sheet Securitizations**                                                                                                                                                 |   |                                |    |                                   |   |   |   |
| 2001-B                                                                                                                                                                                                 |   |                                | 10,009  |                                   |   | 12,743 |   |
| 2001-C                                                                                                                                                                                                 |   |                                | 28,360  |                                   |   | 35,009 |   |
| 2002-A                                                                                                                                                                                                 |   |                                | 28,112  |                                   |   | 34,548 |   |
|                                                                                                                                                                                                   |   |                                | 66,481  |                                   |   | 82,300 |   |
|                                                                                                                                                                                                   |   |                                |    |                                   |   |   |   |
| Total                  Portfolios                                                                                                                                                                      |   | $                                   | 150,018 |                                   | $      | 197,667 |   |
|                                                                                                                                                                                                   |   |                                |    |                                   |   |   |   |
| (1)                  On March 8, 2006 the 2003-A note was paid in full. The receivable                  portfolio is still owned by UACSC but is now recorded as held for                  investment. |   |                                |    |                                   |   |   |   |
| (2)                  On-balance sheet portfolios held by UACSC for collateralized                  financings.                                                                                         |   |                                |    |                                   |   |   |   |

***Finance      Receivables, Net***

----

**Part I     Financial        Information**

***Beneficial      Interest in Master Trust***

***Collateralized      Financings***

***Accrued      Interest Payable***

----

**Part I     Financial        Information**

***Creditor      Notes Payable***

**Liquidity      and Capital Resources for the Quarters Ended March 31, 2006 and      2005**

----

**Part I     Financial        Information**

**Asset      Quality**

----

**Part I     Financial        Information**

***Securitized      Finance Receivables***

| **Current                  Transaction**                            |   | **Initial                  Transaction** |   | **Original                  Amount of Initial Transaction** |   | **Remaining                  Balance at March 31, 2006** |   | **Remaining                  Balance as a Percentage of Original Amount** |    | **Net                  Loss Incurred to Original Amount at March 31,                  2006** |   |
|---------------------------------------------------------------------|--------|------------------------------------------|--------|-------------------------------------------------------------|--------|----------------------------------------------------------|--------|---------------------------------------------------------------------------|---------|----------------------------------------------------------------------------------------------|--------|
|                                                                |   |                                     |   |                                                        |   |                                                     |   |                                                                      |    |                                                                                         |   |
| On                  Balance Sheet Securitized Finance Receivables:  |   |                                     |   |                                                        |   |                                                     |   |                                                                      |    |                                                                                         |   |
| 2004-A1                                                             |   |                                     | 1999-C |                                                        | $      | 364,792                                                  |   | $                                                                         | 2,253   |                                                                                         |   | 0.62 | % |   | 9.53 | % |
| 2004-A2                                                             |   |                                     | 1999-D |                                                        |   | 302,693                                                  |   |                                                                      | 2,975   |                                                                                         |   | 0.98 | % |   | 11.04 | % |
| 2004-B                                                              |   |                                     | 2000-A |                                                        |   | 282,721                                                  |   |                                                                      | 3,593   |                                                                                         |   | 1.27 | % |   | 9.08 | % |
| 2004-C                                                              |   |                                     | 2000-B |                                                        |   | 534,294                                                  |   |                                                                      | 11,730  |                                                                                         |   | 2.20 | % |   | 11.69 | % |
| 2005-A                                                              |   |                                     | 2000-C |                                                        |   | 499,999                                                  |   |                                                                      | 14,035  |                                                                                         |   | 2.81 | % |   | 9.71 | % |
| 2005-B                                                              |   |                                     | 2000-D |                                                        |   | 510,000                                                  |   |                                                                      | 19,090  |                                                                                         |   | 3.74 | % |   | 10.34 | % |
| 2005-C                                                              |   |                                     | 2001-A |                                                        |   | 573,000                                                  |   |                                                                      | 27,403  |                                                                                         |   | 4.78 | % |   | 9.45 | % |
|                                                                |   |                                     |   |                                                        |   | 3,067,499                                                |   |                                                                      | 81,079  |                                                                                         |   |   |   |   |   |   |
|                                                                |   |                                     |   |                                                        |   |                                                     |   |                                                                      |    |                                                                                         |   |   |   |   |   |   |
| Off                  Balance Sheet Securitized Finance Receivables: |   |                                     |   |                                                        |   |                                                     |   |                                                                      |    |                                                                                         |   |   |   |   |   |   |
| 2001-B                                                              |   |                                     |   |                                                        |   | 150,002                                                  |   |                                                                      | 10,009  |                                                                                         |   | 6.67 | % |   | 7.60 | % |
| 2001-C                                                              |   |                                     |   |                                                        |   | 330,000                                                  |   |                                                                      | 28,360  |                                                                                         |   | 8.59 | % |   | 7.06 | % |
| 2002-A                                                              |   |                                     |   |                                                        |   | 300,000                                                  |   |                                                                      | 28,112  |                                                                                         |   | 9.37 | % |   | 5.26 | % |
|                                                                |   |                                     |   |                                                        |   | 780,002                                                  |   |                                                                      | 66,481  |                                                                                         |   |   |   |   |   |   |
|                                                                |   |                                     |   |                                                        |   |                                                     |   |                                                                      |    |                                                                                         |   |   |   |   |   |   |
| Total                                                               |   |                                     |   |                                                        | $      | 3,847,501                                                |   | $                                                                         | 147,560 |                                                                                         |   | 3.84 | % |   | 8.75 | % |

----

**Part I     Financial        Information**

|                                                                              |   | **March                  31, 2006** |   | **December                  31, 2005** |   |
|-----------------------------------------------------------------------------------|--------|-------------------------------------|--------|----------------------------------------|--------|
|                                                                              |   |                                |   |                                   |   |
| **Securitized                  finance receivables principal balance**            |   | $                                   | 81,079 |                                   | $      | 115,031 |   |
|                                                                              |   |                                |   |                                   |   |   |   |
| Delinquencies:                                                                    |   |                                |   |                                   |   |   |   |
| 30-59                  days                                                       |   |                                | 4,134  |                                   |   | 7,703 |   |
| 60-89                  days                                                       |   |                                | 1,167  |                                   |   | 2,390 |   |
| 90+                  days                                                         |   |                                | 607    |                                   |   | 1,271 |   |
| Total                  delinquencies                                              |   | $                                   | 5,908  |                                   | $      | 11,364 |   |
|                                                                              |   |                                |   |                                   |   |   |   |
| Delinquencies                  as a percentage of securitized finance receivables |   |                                | 7.3    | %                                      |   | 9.9 | % |
|                                                                              |   |                                |   |                                   |   |   |   |
| **Off-balance                  sheet finance receivables principal balance**      |   | $                                   | 66,481 |                                   | $      | 82,300 |   |
|                                                                              |   |                                |   |                                   |   |   |   |
| Delinquencies:                                                                    |   |                                |   |                                   |   |   |   |
| 30-59                  days                                                       |   |                                | 1,776  |                                   |   | 2,737 |   |
| 60-89                  days                                                       |   |                                | 388    |                                   |   | 859 |   |
| 90+                  days                                                         |   |                                | 237    |                                   |   | 553 |   |
| Total                  delinquencies                                              |   | $                                   | 2,401  |                                   | $      | 4,149 |   |
|                                                                              |   |                                |   |                                   |   |   |   |
| Delinquencies                  as a percentage of securitized finance receivables |   |                                | 3.6    | %                                      |   | 5.0 | % |

----

**Part I     Financial        Information**

|                                                                                                         |   | **Quarters                  Ended**  |                                 |
|--------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|--------------------------------------|
|                                                                                                              |   |                                      | **March                  31,**  |   |   | **December                  31,** |   |   | **March                  31,** |   |
|                                                                                                         |   |                                      | **2006**                             |   |   | **2005** |   |   | **2005** |   |
|                                                                                                         |   |                                      |                                 |   |   |   |   |   |   |   |
| Balance                  at the beginning of period                                                          |   | $                                         | 6,503                                |   | $ | 13,980 |   | $ | 11,722 |   |
| Allowance                  at purchase                                                                       |   |                                      | -                                    |   |   | - |   |   | 2,669 |   |
| Charge-offs                                                                                                  |   |                                      | (4,251                               | ) |   | (5,227 | ) |   | (5,697 | ) |
| Recoveries                                                                                                   |   |                                      | 3,549                                |   |   | 3,296 |   |   | 3,615 |   |
| Provision                  (recovery) for estimated credit losses                                            |   |                                      | (934                                 | ) |   | (5,546 | ) |   | 449 |   |
|                                                                                                         |   |                                      |                                 |   |   |   |   |   |   |   |
| Balance                  at the end of the period                                                            |   | $                                         | 4,867                                |   | $ | 6,503 |   | $ | 12,758 |   |
|                                                                                                         |   |                                      |                                 |   |   |   |   |   |   |   |
| Net                  charge offs                                                                             |   | $                                         | 702                                  |   | $ | 1,931 |   | $ | 2,082 |   |
| Securitized                  finance receivables                                                             |   | $                                         | 81,079                               |   | $ | 115,031 |   | $ | 134,074 |   |
|                                                                                                         |   |                                      |                                 |   |   |   |   |   |   |   |
| Allowance                  for loan losses as a percent of securitized finance                  receivables  |   |                                      | 6.00                                 | % |   | 5.65 | % |   | 9.52 | % |
|                                                                                                         |   |                                      |                                 |   |   |   |   |   |   |   |
| Annualized                  net charge offs as a percent of securitized finance                  receivables |   |                                      | 3.46                                 | % |   | 6.71 | % |   | 6.21 | % |
|                                                                                                         |   |                                      |                                 |   |   |   |   |   |   |   |
| Allowance                  for loan losses as a percent of annualized net charge offs                        |   |                                      | 173.33                               | % |   | 84.19 | % |   | 153.19 | % |

***Finance      Receivables***

|                                                                                  |   | **March                  31,** |    | **December                  31,** |   |
|---------------------------------------------------------------------------------------|--------|--------------------------------|---------|-----------------------------------|--------|
|                                                                                  |   | **2006**                       |    | **2005**                          |   |
|                                                                                  |   |                           |    |                              |   |
| Finance                  receivables - gross balance                                  |   | $                              | 101,340 |                              | $      | 97,820 |   |
|                                                                                  |   |                           |    |                              |   |   |   |
| Delinquencies:                                                                        |   |                           |    |                              |   |   |   |
| 30-59                  days                                                           |   |                           | 994     |                              |   | 1,124 |   |
| 60-89                  days                                                           |   |                           | 623     |                              |   | 768 |   |
| 90+                  days                                                             |   |                           | 597     |                              |   | 878 |   |
| Total                  delinquencies                                                  |   | $                              | 2,214   |                              | $      | 2,770 |   |
|                                                                                  |   |                           |    |                              |   |   |   |
| Delinquencies                  as a percentage of finance receivables - gross balance |   |                           | 2.2     | %                                 |   | 2.8 | % |

----

**Part I     Financial        Information**

|                                                                                                                                                                           |   | **Quarters                  Ended** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|--------|
|                                                                                                                                                                           |   | **March                  31,**      |   | **December                  31,** |   |
|                                                                                                                                                                           |   | **2006**                            |   | **2005** |   |
|                                                                                                                                                                           |   |                                |   |   |   |
| Balance                  at beginning of period                                                                                                                                |   | $                                   | 6,031  |   | $ | 5,200 |   |
| Charge-offs,                  net of recoveries (1)                                                                                                                            |   |                                | (1,186 | ) |   | (407 | ) |
| Provision                  for estimated credit losses                                                                                                                         |   |                                | 1,071  |   |   | 1,238 |   |
|                                                                                                                                                                           |   |                                |   |   |   |   |   |
| Balance                  at the end of the period                                                                                                                              |   | $                                   | 5,916  |   | $ | 6,031 |   |
|                                                                                                                                                                           |   |                                |   |   |   |   |   |
| Net                  charge offs                                                                                                                                               |   | $                                   | 1,186  |   | $ | 407 |   |
| Finance                  receivables, net of unearned finance charges                                                                                                          |   | $                                   | 91,381 |   | $ | 87,952 |   |
|                                                                                                                                                                           |   |                                |   |   |   |   |   |
| Allowance                  for loan losses as a percent of finance receivables, net of unearned                  finance charges                                               |   |                                | 6.47   | % |   | 6.86 | % |
|                                                                                                                                                                           |   |                                |   |   |   |   |   |
| Annualized                  net charge offs as a percent of finance receivables, net of unearned                  finance charges                                              |   |                                | 5.19   | % |   | 1.85 | % |
|                                                                                                                                                                           |   |                                |   |   |   |   |   |
| Allowance                  for loan losses as a percent of annualized net charge offs                                                                                          |   |                                | 124.70 | % |   | 370.45 | % |
|                                                                                                                                                                           |   |                                |   |   |   |   |   |
| (1)                  Charge-offs do not include loans subject to SOP 03-3 which were                  charged                  off during the quarter ended December 31, 2005. |   |                                |   |   |   |   |   |

**D**
**iscussion      of Forward-Looking Statements**

|   | § | the                risks an uncertainties discussed in the 2005 Annual Report on Form                10-K; |
|--------|--------|------------------------------------------------------------------------------------------------------------|

----

**Part I     Financial        Information**

|   | § | general                economic, market, or business conditions; |
|--------|--------|------------------------------------------------------------------|

|   | § | changes                in interest rates, the cost of funds, and demand for White River’s                financial services; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------|

|   | § | changes                in White River’s competitive position; |
|--------|--------|---------------------------------------------------------------------|

|   | § | White                River’s ability to manage growth; |
|--------|--------|--------------------------------------------------------------|

|   | § | the                opportunities that may be presented to and pursued by White River; |
|--------|--------|---------------------------------------------------------------------------------------|

|   | § | competitive                actions by other companies; |
|--------|--------|--------------------------------------------------------|

|   | § | changes                in laws or regulations; |
|--------|--------|------------------------------------------------|

|   | § | changes                in the policies of federal or state regulators and agencies; and |
|--------|--------|-----------------------------------------------------------------------------------------|

|   | § | other                circumstances, many of which are beyond White River’s control. |
|--------|--------|-------------------------------------------------------------------------------------------|

**ITEM      **
**4.      CONTROLS AND PROCEDURES.**

----

**PART      II**

**ITEM**
**      1. LEGAL PROCEEDINGS.**

**ITEM      **
**6.       EXHIBITS.**

----

**SIGNATURES**

|                          |   |   | **White                  River Capital, Inc.**        |
|-------------------------------|--------|--------|-------------------------------------------------------|
|                          |   |   | (Registrant)                                          |
|                          |   |   |                                                  |
| May                  10, 2006 | By:    |   |  /s/                Martin J. Szumski            |
|                          |   |   | Martin                  J. Szumski                    |
|                          |   |   | Chief                  Financial Officer              |
|                          |   |   | (Signing                  on behalf of the registrant |
|                          |   |   | as                  Principal Financial Officer)      |