**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D. C. 20549**

**FORM      10-Q**

**For      the quarterly period ended March 31, 2007**

**001-33257**

**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**

| Large                accelerated filer  o   | Accelerated                filer  o  | Non-accelerated                filer  x  |
|-----------------------------------------------------------------|-----------------------------------------------------|---------------------------------------------------------|

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**WHITE      RIVER CAPITAL, INC.**

**FORM      10-Q FOR THE THREE MONTHS ENDED MARCH 31, 2007**

----

**-      INDEX -**

|                        |   |                                                                                                                                                                |  **PAGE** |
|-----------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|
| **PART                I.**  |   | **FINANCIAL                INFORMATION**                                                                                                                            |           |
| **Item                1.**  |   | **Financial                Statements**                                                                                                                             |           |
|                        |   | **Unaudited                Condensed Consolidated Balance Sheets as of March 31, 2007 and December                31, 2006**                                        | 1              |
|                        |   | **Unaudited                Condensed Consolidated Statements of Operations for the quarters                ended                March 31, 2007 and 2006**           | 2              |
|                        |   | **Unaudited                Condensed Consolidated Statements of Cash Flows for the quarters                ended                March 31, 2007 and 2006**           | 3              |
|                        |   | **Unaudited                Condensed Consolidated Statements of Comprehensive Income for the                quarters                ended March 31, 2007 and 2006** | 4              |
|                        |   | **Notes                to Unaudited Condensed Consolidated Financial                Statements**                                                                    | 5              |
| **Item                2.**  |   | **Management’s                Discussion and Analysis of Financial Condition and Results of                Operations**                                       | 17             |
| **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     |

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**PART      I FINANCIAL INFORMATION**

**PART      I**

----

**ITEM      1. FINANCIAL STATEMENTS.**

| **WHITE                RIVER CAPITAL, INC. AND SUBSIDIARIES**                                                                                                                                                                                 |   |                              |    |                                 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|---------|--------------------------------------|--------|
| **CONDENSED                CONSOLIDATED BALANCE SHEETS**                                                                                                                                                                                      |   |                              |    |                                 |   |
| **(Unaudited)**                                                                                                                                                                                                                               |   |                              |    |                                 |   |
| **(Dollars                in thousands)**                                                                                                                                                                                                     |   |                              |    |                                 |   |
|                                                                                                                                                                                                                                          |   |                              |    |                                 |   |
| **ASSETS**                                                                                                                                                                                                                                    |   | **March                31, 2007** |    | **December                31, 2006** |   |
|                                                                                                                                                                                                                                          |   |                              |    |                                 |   |
| Cash                and cash equivalents                                                                                                                                                                                                      |   | $                                 | 5,036   |                                 | $      | 6,958 |   |
| Restricted                cash                                                                                                                                                                                                                |   |                              | 12,880  |                                 |   | 13,618 |   |
| Securitized                finance receivables—net                                                                                                                                                                                      |   |                              | 17,345  |                                 |   | 27,447 |   |
| Finance                receivables—net                                                                                                                                                                                                  |   |                              | 80,841  |                                 |   | 78,693 |   |
| Beneficial                interest in Master Trust                                                                                                                                                                                            |   |                              | 10,079  |                                 |   | 23,601 |   |
| Goodwill                                                                                                                                                                                                                                      |   |                              | 34,698  |                                 |   | 34,698 |   |
| Deferred                tax assets—net                                                                                                                                                                                                  |   |                              | 37,391  |                                 |   | 38,189 |   |
| Other                assets                                                                                                                                                                                                                   |   |                              | 12,129  |                                 |   | 2,220 |   |
|                                                                                                                                                                                                                                          |   |                              |    |                                 |   |   |   |
| TOTAL                                                                                                                                                                                                                                         |   | $                                 | 210,399 |                                 | $      | 225,424 |   |
|                                                                                                                                                                                                                                          |   |                              |    |                                 |   |   |   |
|                                                                                                                                                                                                                                          |   |                              |    |                                 |   |   |   |
| **LIABILITIES                AND SHAREHOLDERS’ EQUITY**                                                                                                                                                                                 |   |                              |    |                                 |   |   |   |
|                                                                                                                                                                                                                                          |   |                              |    |                                 |   |   |   |
| LIABILITIES:                                                                                                                                                                                                                                  |   |                              |    |                                 |   |   |   |
| Collateralized                financing                                                                                                                                                                                                       |   | $                                 | 21,200  |                                 | $      | 32,368 |   |
| Line                of credit                                                                                                                                                                                                                 |   |                              | 45,000  |                                 |   | 49,500 |   |
| Secured                note payable                                                                                                                                                                                                           |   |                              | 12,188  |                                 |   | 13,125 |   |
| Subordinated                debentures                                                                                                                                                                                                        |   |                              | 7,700   |                                 |   | 7,700 |   |
| Accrued                interest                                                                                                                                                                                                               |   |                              | 961     |                                 |   | 1,169 |   |
| Amounts                due to Master Trust                                                                                                                                                                                                    |   |                              | 8,888   |                                 |   | 8,400 |   |
| Creditor                notes payable                                                                                                                                                                                                         |   |                              | 2,117   |                                 |   | 1,392 |   |
| Other                payables and accrued expenses                                                                                                                                                                                            |   |                              | 2,737   |                                 |   | 3,852 |   |
|                                                                                                                                                                                                                                          |   |                              |    |                                 |   |   |   |
| Total                liabilities                                                                                                                                                                                                              |   |                              | 100,791 |                                 |   | 117,506 |   |
|                                                                                                                                                                                                                                          |   |                              |    |                                 |   |   |   |
| 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; 3,842,287                and                3,813,155issued and outstanding at March 31, 2007 and December 31,                2006,                respectively |   |                              | 179,723 |                                 |   | 179,594 |   |
| Warrants,                150,000 outstanding at March 31, 2007 and December 31,                2006                                                                                                                                           |   |                              | 534     |                                 |   | 534 |   |
| Accumulated                other comprehensive income, net of taxes                                                                                                                                                                           |   |                              | 6,289   |                                 |   | 11,107 |   |
| Accumulated                deficit                                                                                                                                                                                                            |   |                              | (76,938 | )                                    |   | (83,317 | ) |
|                                                                                                                                                                                                                                          |   |                              |    |                                 |   |   |   |
| Total                shareholders’ equity                                                                                                                                                                                               |   |                              | 109,608 |                                 |   | 107,918 |   |
|                                                                                                                                                                                                                                          |   |                              |    |                                 |   |   |   |
| TOTAL                                                                                                                                                                                                                                         |   | $                                 | 210,399 |                                 | $      | 225,424 |   |
|                                                                                                                                                                                                                                          |   |                              |    |                                 |   |   |   |
| 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,** |   |
|                                                                                          |   | **2007** |   | **2006** |   |
| INTEREST:                                                                                     |   |   |   |   |   |
| Interest                on receivables                                                        |   | $ | 8,147 |   | $ | 10,032 |   |
| Accretion                and other interest                                                   |   |   | 10,317 |   |   | 710 |   |
|                                                                                          |   |   |   |   |   |   |   |
| Total                interest income                                                          |   |   | 18,464 |   |   | 10,742 |   |
|                                                                                          |   |   |   |   |   |   |   |
| Interest                expense                                                               |   |   | (1,990 | ) |   | (3,322 | ) |
|                                                                                          |   |   |   |   |   |   |   |
| Net                interest margin                                                            |   |   | 16,474 |   |   | 7,420 |   |
|                                                                                          |   |   |   |   |   |   |   |
| Provision                for estimated credit losses                                          |   |   | (637 | ) |   | (137 | ) |
|                                                                                          |   |   |   |   |   |   |   |
| Net                interest margin after provision for estimated credit                losses |   |   | 15,837 |   |   | 7,283 |   |
|                                                                                          |   |   |   |   |   |   |   |
| OTHER                REVENUES:                                                                |   |   |   |   |   |   |   |
| Charge                to Master Trust—net                                               |   |   | (1,061 | ) |   | (2,388 | ) |
| Change                in fair market valuation of creditor liabilities                        |   |   | (238 | ) |   | - |   |
| Gain                from deficiency sale                                                      |   |   | 41 |   |   | 46 |   |
| Other                income                                                                   |   |   | 141 |   |   | 61 |   |
|                                                                                          |   |   |   |   |   |   |   |
| Total                other revenues (charges), net                                            |   |   | (1,117 | ) |   | (2,281 | ) |
|                                                                                          |   |   |   |   |   |   |   |
| OTHER                EXPENSES:                                                                |   |   |   |   |   |   |   |
| Salaries                and benefits                                                          |   |   | 2,142 |   |   | 1,995 |   |
| Third                party servicing expense                                                  |   |   | 218 |   |   | 703 |   |
| Other                operating expenses                                                       |   |   | 1,319 |   |   | 1,624 |   |
| Bankruptcy                costs                                                               |   |   | 6 |   |   | 75 |   |
|                                                                                          |   |   |   |   |   |   |   |
| Total                other expenses                                                           |   |   | 3,685 |   |   | 4,397 |   |
|                                                                                          |   |   |   |   |   |   |   |
| INCOME                BEFORE INCOME TAXES                                                     |   |   | 11,035 |   |   | 605 |   |
|                                                                                          |   |   |   |   |   |   |   |
| INCOME                TAX BENEFIT (EXPENSE)                                                   |   |   | (4,024 | ) |   | 532 |   |
|                                                                                          |   |   |   |   |   |   |   |
| NET                INCOME                                                                     |   | $ | 7,011 |   | $ | 1,137 |   |
|                                                                                          |   |   |   |   |   |   |   |
| NET                INCOME PER COMMON SHARE (BASIC)                                            |   | $ | 1.83 |   | $ | 0.30 |   |
|                                                                                          |   |   |   |   |   |   |   |
| NET                INCOME PER COMMON SHARE (DILUTED)                                          |   | $ | 1.78 |   | $ | 0.29 |   |
|                                                                                          |   |   |   |   |   |   |   |
| BASIC                WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING                     |   |   | 3,835,458 |   |   | 3,812,822 |   |
|                                                                                          |   |   |   |   |   |   |   |
| DILUTED                WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING                   |   |   | 3,937,280 |   |   | 3,864,086 |   |
|                                                                                          |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   |   |   |
| 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,** |    |
|                                                                                                                                                                                             |   | **2007**                                    |    | **2006** |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES:                                                                                                                                             |   |                                        |    |     |   |
| Net                income                                                                                                                                                                        |   | $                                           | 7,011   |     | $      | 1,137 |   |
| Adjustments                to reconcile net income to net cash provided by (used in) operating                activities:                                                                        |   |                                        |    |     |   |   |   |
| Accretion                of beneficial interest in Master Trust                                                                                                                                  |   |                                        | (10,126 | )        |   | (480 | ) |
| Provision                for estimated credit losses                                                                                                                                             |   |                                        | 637     |     |   | 137 |   |
| Amortization                and depreciation                                                                                                                                                     |   |                                        | 110     |     |   | 123 |   |
| Amortization                of discount and interest accrued on creditor notes payable                                                                                                           |   |                                        | 110     |     |   | 309 |   |
| Deferred                income taxes                                                                                                                                                             |   |                                        | 3,930   |     |   | (579 | ) |
| Change                in fair value of creditor notes payable                                                                                                                                    |   |                                        | 238     |     |   | - |   |
| Stock                based compensation expense                                                                                                                                                  |   |                                        | 129     |     |   | - |   |
| Changes                in assets and liabilities:                                                                                                                                                |   |                                        |    |     |   |   |   |
| Accrued                interest receivable and other assets                                                                                                                                      |   |                                        | 19      |     |   | 1,888 |   |
| Amounts                due to Master Trust                                                                                                                                                       |   |                                        | 488     |     |   | (21 | ) |
| Payment                of creditor notes payable accrued interest                                                                                                                                |   |                                        | (105    | )        |   | - |   |
| Other                payables and accrued expenses                                                                                                                                               |   |                                        | (1,231  | )        |   | 158 |   |
| Net                cash provided by operating activities                                                                                                                                         |   |                                        | 1,210   |     |   | 2,672 |   |
|                                                                                                                                                                                             |   |                                        |    |     |   |   |   |
| CASH                FLOWS FROM INVESTING ACTIVITIES:                                                                                                                                             |   |                                        |    |     |   |   |   |
| Acquisition                of Coastal Credit, LLC, net of cash acquired                                                                                                                          |   |                                        | -       |     |   | (3,840 | ) |
| Principal                collections and recoveries on securitized finance                receivables                                                                                            |   |                                        | 10,664  |     |   | 30,674 |   |
| Purchase                of finance receivables                                                                                                                                                   |   |                                        | (16,690 | )        |   | (16,574 | ) |
| Collections                on finance receivables                                                                                                                                                |   |                                        | 13,102  |     |   | 12,450 |   |
| Principal                collections and recoveries on receivables held for                investment                                                                                            |   |                                        | 310     |     |   | - |   |
| Collections                on beneficial interest in Master Trust                                                                                                                                |   |                                        | 6,017   |     |   | - |   |
| Change                in restricted cash                                                                                                                                                         |   |                                        | 738     |     |   | 1,343 |   |
| Capital                expenditures                                                                                                                                                              |   |                                        | (64     | )        |   | (11 | ) |
| Net                cash provided by investing activities                                                                                                                                         |   |                                        | 14,077  |     |   | 24,042 |   |
|                                                                                                                                                                                             |   |                                        |    |     |   |   |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES:                                                                                                                                             |   |                                        |    |     |   |   |   |
| Principal                payments on collateralized financings                                                                                                                                   |   |                                        | (11,168 | )        |   | (32,026 | ) |
| Principal                payments on secured note payable                                                                                                                                        |   |                                        | (937    | )        |   | - |   |
| Principal                payments on creditor notes payable                                                                                                                                      |   |                                        | (604    | )        |   | - |   |
| Net                borrowing (decrease) in line of credit                                                                                                                                        |   |                                        | (4,500  | )        |   | 4,500 |   |
| Net                cash used in financing activities                                                                                                                                             |   |                                        | (17,209 | )        |   | (27,526 | ) |
|                                                                                                                                                                                             |   |                                        |    |     |   |   |   |
| DECREASE                IN CASH AND CASH EQUIVALENTS                                                                                                                                             |   |                                        | (1,922  | )        |   | (812 | ) |
| CASH                AND CASH EQUIVALENTS—Beginning of year                                                                                                                                 |   |                                        | 6,958   |     |   | 6,878 |   |
| CASH                AND CASH EQUIVALENTS—End of period                                                                                                                                     |   | $                                           | 5,036   |     | $      | 6,066 |   |
|                                                                                                                                                                                             |   |                                        |    |     |   |   |   |
| SUPPLEMENTAL                DISCLOSURES OF CASH FLOW INFORMATION:                                                                                                                                |   |                                        |    |     |   |   |   |
| Interest                paid                                                                                                                                                                     |   | $                                           | 1,952   |     | $      | 3,174 |   |
| Non                cash items:                                                                                                                                                                   |   |                                        |    |     |   |   |   |
| Initial                fair value adjustment for creditor notes payable                                                                                                                          |   | $                                           | 994     |     | $      | - |   |
| Transfer                of securitized finance receivables—net to other assets after the                collateralized financing for securitization 2003-A was paid in                full |   | $                                           | -       |     | $      | 2,771 |   |
| Receivable                recognition in other assets of beneficial interest in Master Trust                distribution                                                                         |   | $                                           | 10,307  |     | $      | - |   |
|                                                                                                                                                                                             |   |                                        |    |     |   |   |   |
| 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)**                                              |   |                                        |   |     |   |
|                                                                                   |   |                                        |   |     |   |
|                                                                                   |   | **Quarters                Ended March 31,** |   |
|                                                                                   |   | **2007**                                    |   | **2006** |   |
|                                                                                   |   |                                        |   |     |   |
| NET                INCOME                                                              |   | $                                           | 7,011  |     | $      | 1,137 |   |
|                                                                                   |   |                                        |   |     |   |   |   |
| OTHER                COMPREHENSIVE INCOME:                                             |   |                                        |   |     |   |   |   |
| Unrealized                gain on beneficial interest in Master Trust, net of tax      |   |                                        | 1,612  |     |   | 3,875 |   |
| Reclassification                adjustment for gain included in net income, net of tax |   |                                        | (6,430 | )        |   | (480 | ) |
| Net                other comprehensive income                                          |   |                                        | (4,818 | )        |   | 3,395 |   |
|                                                                                   |   |                                        |   |     |   |   |   |
| COMPREHENSIVE                INCOME                                                    |   | $                                           | 2,193  |     | $      | 4,532 |   |
|                                                                                   |   |                                        |   |     |   |   |   |
|                                                                                   |   |                                        |   |     |   |   |   |
| See                notes to condensed consolidated financial statements.               |   |                                        |   |     |   |   |   |

----

**PART      I FINANCIAL INFORMATION**

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

**New      Accounting Pronouncements**

*Accounting      for Uncertainty in Income Taxes*

*Fair      Value Measurements*
*,*

----

**PART      I FINANCIAL INFORMATION**

*The      Fair Value Option for Financial Assets and Financial      Liabilities*

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

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

----

**PART      I FINANCIAL INFORMATION**

|                                                             |   | **March                31,** |   | **December                31,** |   |
|------------------------------------------------------------------|--------|------------------------------|--------|---------------------------------|--------|
|                                                             |   | **2007**                     |   | **2006**                        |   |
| Securitized                finance receivables—net         |   | $                            | 17.3   |                            | $      | 27.4 |   |
| Restricted                cash                                   |   |                         | 12.6   |                            |   | 13.3 |   |
| Receivable                from servicer included in other assets |   |                         | 0.4    |                            |   | 0.3 |   |
| Collateralized                financings                         |   |                         | (21.2  | )                               |   | (32.4 | ) |
| Accrued                interest payable                          |   |                         | (0.1   | )                               |   | (0.1 | ) |
| Other                payables and accrued expenses               |   |                         | (0.1   | )                               |   | (0.1 | ) |
|                                                             |   |                         |   |                            |   |   |   |
| Amounts                due to Master Trust                       |   | $                            | 8.9    |                            | $      | 8.4 |   |

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

|                                                                |   | **March                31,** |   | **December                31,** |   |
|---------------------------------------------------------------------|--------|------------------------------|--------|---------------------------------|--------|
|                                                                |   | **2007**                     |   | **2006**                        |   |
| Principal                balance of securitized finance receivables |   | $                            | 18,078 |                            | $      | 28,800 |   |
| Accrued                interest receivable                          |   |                         | 148    |                            |   | 264 |   |
| Allowance                for credit losses                          |   |                         | (881   | )                               |   | (1,617 | ) |
|                                                                |   |                         |   |                            |   |   |   |
| Securitized                finance receivables—net            |   | $                            | 17,345 |                            | $      | 27,447 |   |

|                                                |   | **Quarters                Ended** |   |
|-----------------------------------------------------|--------|-----------------------------------|--------|
|                                                |   | **March                31,**      |   | **March                31,** |   |
|                                                |   | **2007**                          |   | **2006** |   |
|                                                |   |                              |   |   |   |
| Balance                at the beginning of period   |   | $                                 | 1,617  |   | $ | 6,503 |   |
| Charge-offs                                         |   |                              | (1,088 | ) |   | (4,251 | ) |
| Recoveries                                          |   |                              | 1,155  |   |   | 3,549 |   |
| Recovery                for estimated credit losses |   |                              | (803   | ) |   | (934 | ) |
|                                                |   |                              |   |   |   |   |   |
| Balance                at the end of the period     |   | $                                 | 881    |   | $ | 4,867 |   |

----

**PART      I FINANCIAL INFORMATION**

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

|                            |   |         | **Initial                Note** |       | **March                31,** |     | **December                31,** |     |
|---------------------------------|--------|--------------|---------------------------------|------------|------------------------------|----------|---------------------------------|----------|
| **Notes                Series** |   | **Note**Rate |                            | **Amount** |                         | **2007** |                            | **2006** |   |
|                            |   |         |                            |       |                         |     |                            |     |   |   |
| Series                2004-A1   |   |         | 4.15                            | %          |                         | $        | 29,485                          |     | $ | 231 |   | $ | 425 |   |
| Series                2004-A2   |   |         | 4.55                            |       |                         |     | 29,298                          |     |   | 422 |   |   | 764 |   |
| Series                2004-B    |   |         | 5.02                            |       |                         |     | 25,896                          |     |   | 541 |   |   | 1,009 |   |
| Series                2004-C    |   |         | 4.89                            |       |                         |     | 51,992                          |     |   | 2,343 |   |   | 3,946 |   |
| Series                2005-A    |   |         | 4.49                            |       |                         |     | 47,742                          |     |   | 3,513 |   |   | 5,564 |   |
| Series                2005-B    |   |         | 4.69                            |       |                         |     | 50,684                          |     |   | 5,412 |   |   | 8,087 |   |
| Series                2005-C    |   |         | 5.40                            |       |                         |     | 54,933                          |     |   | 8,738 |   |   | 12,573 |   |
|                            |   |         |                            |       |                         |     |                            |     |   |   |   |   |   |   |
|                            |   |         |                            |       |                         | $        | 290,030                         |     | $ | 21,200 |   | $ | 32,368 |   |

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

----

**PART      I FINANCIAL INFORMATION**

|   | § | *Credit                  Loss Assumptions*—Gross                  credit losses are calculated using the loss to liquidation factor                  methodology. 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.                  However,                  recovery cash flows from gross credit losses are estimated independently                  as two different cash flow streams. These two recovery cash flow                  streams                  are: |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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 based on a rolling twelve month                average. This twelve month average for each pool is used to project                monthly liquidation recovery by multiplying this value by the monthly                estimated gross default dollars                projected. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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. 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 16 or 28 month period. The bankruptcy                recovery has been adjusted to reflect the percentage of accounts                remaining                after a significant portion of the Chapter 13 bankruptcy receivables                were                sold during June 2006. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | *Prepayment                Assumptions*—UAC                estimates prepayments by evaluating the historical prepayment performance                of each pool of receivables. UAC used annual prepayment rates ranging                from                30.1% to 45.4% at March 31, 2007 as compared to 30.2% to 46.0% at                December 31, 2006. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | *Discount                Rate Assumptions*—UAC                determines the estimated fair value of its beneficial interest in                Master                Trust by discounting the expected cash flows released from the Master                Trust account (the cash out method) using a discount rate that UAC                believes is commensurate with the risks involved. UAC used a discount                rate                of 15% to value the beneficial interest in Master Trust at March                31, 2007                and December 31, 2006 to reflect current market conditions. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**PART      I FINANCIAL INFORMATION**

|                                                                         |   | **Beneficial                Interest in Master Trust** |    |
|------------------------------------------------------------------------------|--------|--------------------------------------------------------|---------|
|                                                                         |   |                                                   |    |
| Beginning                balance                                             |   | $                                                      | 23,601  |   |
| Total                unrealized gains included in other comprehensive income |   |                                                   | 2,539   |   |
| Purchases,                issuances and settlements                          |   |                                                   | (16,061 | ) |
| Transfers                in and/or out of Level 3                            |   |                                                   | -       |   |
| Ending                balance                                                |   | $                                                      | 10,079  |   |

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

|                                                                                                                           |   | **March                31,** |    | **December                31,** |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|---------|---------------------------------|--------|
|                                                                                                                           |   | **2007**                     |    | **2006**                        |   |
| Finance                receivables, gross                                                                                      |   | $                            | 106,250 |                            | $      | 104,399 |   |
| Unearned                interest                                                                                               |   |                         | (7,893  | )                               |   | (8,574 | ) |
| Finance                receivables, net of unearned finance charge income                                                      |   |                         | 98,357  |                            |   | 95,825 |   |
|                                                                                                                           |   |                         |    |                            |   |   |   |
| Accretable                unearned acquisition discounts and fees                                                              |   |                         | (11,822 | )                               |   | (11,438 | ) |
| Finance                receivables, net of unearned finance charge income and discounts                and                fees |   |                         | 86,535  |                            |   | 84,387 |   |
|                                                                                                                           |   |                         |    |                            |   |   |   |
| Allowance                for loan losses                                                                                       |   |                         | (5,694  | )                               |   | (5,694 | ) |
|                                                                                                                           |   |                         |         |                            |   |  |   |
| Finance                receivables, net                                                                                        |   | $                            | 80,841  |                            | $      | 78,693 |   |

----

**PART      I FINANCIAL INFORMATION**

|                                                 |   | **Quarters                Ended March 31,** |   |
|------------------------------------------------------|--------|---------------------------------------------|--------|
|                                                 |   | **2007**                                    |   | **2006** |   |
| Balance                at beginning of period        |   | $                                           | 5,694  |   | $ | 6,031 |   |
| Charge-offs,                net of recoveries        |   |                                        | (1,440 | ) |   | (1,186 | ) |
| Provision                for estimated credit losses |   |                                        | 1,440  |   |   | 1,071 |   |
|                                                 |   |                                        |   |   |   |   |   |
| Balance                at the end of the period      |   | $                                           | 5,694  |   | $ | 5,916 |   |

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

|                                                               |   | **March                31,** |   | **December                31,** |   |
|--------------------------------------------------------------------|--------|------------------------------|--------|---------------------------------|--------|
|                                                               |   | **2007**                     |   | **2006**                        |   |
| Receivable                from servicer                            |   | $                            | 404    |                            | $      | 296 |   |
| Prepaid                expenses                                    |   |                         | 417    |                            |   | 408 |   |
| Property,                equipment and leasehold improvements, net |   |                         | 616    |                            |   | 609 |   |
| Receivables                held for investment, net                |   |                         | 239    |                            |   | 454 |   |
| Receivable                from Master Trust account                |   |                         | 10,307 |                            |   | 268 |   |
| Other                                                              |   |                         | 146    |                            |   | 185 |   |
| Total                other assets                                  |   | $                            | 12,129 |                            | $      | 2,220 |   |

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

*Financial      Reporting by Entities in Reorganization Under the Bankruptcy      Code*
*Accounting      for Transfers and Servicing of Financial Assets and Extinguishment of      Liabilities*

----

**PART      I FINANCIAL INFORMATION**

|                                                                                                                  |   | **Balance                Sheet 1/1/07 prior to Adoption** |   | **Net                Loss upon Adoption** |   | **Balance                Sheet 1/1/07 after Adoption of Fair Value Option** |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|--------|-------------------------------------------|--------|-----------------------------------------------------------------------------|--------|
|                                                                                                                  |   |                                                      |   |                                      |   |                                                                        |   |
| Creditor                notes payable (including accrued interest)                                                    |   | $                                                         | 1,484  |                                      | $      | 994                                                                         |   | $ | 2,478 |   |
| Increase                in deferred tax asset                                                                         |   |                                                      |   |                                      |   | (363                                                                        | )      |   |   |   |
| Cumulative                effect of adoption of the fair value option (charged to accumulated                deficit) | $      | 631                                                       |   |                                      |   |                                                                        |

|                                                                          |   | **Creditor                Notes Payable** |   |
|-------------------------------------------------------------------------------|--------|-------------------------------------------|--------|
|                                                                          |   |                                      |   |
| Beginning                balance                                              |   | $                                         | 2,478  |   |
| Total                losses included in earnings (recorded as other revenues) |   |                                      | 238    |   |
| Purchases,                issuances and settlements                           |   |                                      | (599   | ) |
| Transfers                in and/or out of Level 3                             |   |                                      | -      |   |
| Ending                balance                                                 |   | $                                         | 2,117  |   |

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

----

**PART      I FINANCIAL INFORMATION**

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

----

**PART      I FINANCIAL INFORMATION**

| **For                The Quarter Ended March 31, 2007**                                                                           |   | **UAC** |    | **Coastal                Credit** |   | **Corporate                and Other** |   | **Consolidated** |                                   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|---------|---------|-----------------------------------|--------|----------------------------------------|--------|------------------|----------------------------------------|
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |
| Total                interest income                                                                                              |   | $       | 11,049  |                              | $      | 7,387                                  |   | $                | 28                                     |   | $ | 18,464 |   |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| Interest                expense                                                                                                   |   |    | (446    | )                                 |   | (1,201                                 | )      |             | (343                                   | ) |   | (1,990 | ) |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| Net                interest margin                                                                                                |   |    | 10,603  |                              |   | 6,186                                  |   |             | (315                                   | ) |   | 16,474 |   |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| Recovery                (provision) for estimated credit losses                                                                   |   |    | 803     |                              |   | (1,440                                 | )      |             | -                                      |   |   | (637 | ) |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| Net                interest margin (deficit) after recovery (provision) for estimated                credit                losses |   |    | 11,406  |                              |   | 4,746                                  |   |             | (315                                   | ) |   | 15,837 |   |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| Total                other revenues (charges), net                                                                                |   |    | (7,050  | )                                 |   | (82                                    | )      |             | 6,015                                  |   |   | (1,117 | ) |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| Total                other expenses                                                                                               |   |    | 431     |                              |   | 2,715                                  |   |             | 539                                    |   |   | 3,685 |   |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| Income                before income taxes                                                                                         |   | $       | 3,925   |                              | $      | 1,949                                  |   | $                | 5,161                                  |   | $ | 11,035 |   |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| **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 |   |

|                               |   | **March                31,** |    | **December                31,** |   |
|------------------------------------|--------|------------------------------|---------|---------------------------------|--------|
|                               |   | **2007**                     |    | **2006**                        |   |
|                               |   |                         |    |                            |   |
| Corporate                and other |   | $                            | 39,797  |                            | $      | 43,205 |   |
| Coastal                Credit      |   |                         | 118,029 |                            |   | 114,900 |   |
| UAC                                |   |                         | 52,573  |                            |   | 67,319 |   |
|                               |   |                         |    |                            |   |   |   |
|                               |   | $                            | 210,399 |                            | $      | 225,424 |   |

----

**PART      I FINANCIAL INFORMATION**

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

*Share-Based      Payment*

----

**PART      I FINANCIAL INFORMATION**

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

|                                                                  |   | **Quarters                Ended March 31,** |      |
|-----------------------------------------------------------------------|--------|---------------------------------------------|-----------|
|                                                                  |   | **2007**                                    |      | **2006** |   |
|                                                                  |   |                                        |      |   |   |
| Net                income in thousands                                |   | $                                           | 7,011     |   | $ | 1,137 |   |
|                                                                  |   |                                        |      |   |   |   |   |
| Weighted                average shares outstanding                    |   |                                        | 3,835,458 |   |   | 3,812,822 |   |
|                                                                  |   |                                        |      |   |   |   |   |
| Incremental                shares from assumed conversions:           |
| Warrants                                                              |   |                                        | 82,998    |   |   | 51,264 |   |
| Stock                award plans                                      |   |                                        | 18,824    |   |   | - |   |
|                                                                  |   |                                        |           |   |   |  |   |
| Weighted                average shares and assumed incremental shares |   |                                        | 3,937,280 |   |   | 3,864,086 |   |
|                                                                  |   |                                        |      |   |   |   |   |
| Earnings                per share:                                    |
|                                                                  |   |                                        |      |   |   |   |   |
| Basic                                                                 |   | $                                           | 1.83      |   | $ | 0.30 |   |
|                                                                  |   |                                        |      |   |   |   |   |
| Diluted                                                               |   | $                                           | 1.78      |   | $ | 0.29 |   |

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

**15.**
**SUBSEQUENT      EVENTS**

----

**PART      I FINANCIAL INFORMATION**

**ITEM      2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS.**

**General**

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

***Net      Assets of Collateralized Financings***

----

**PART      I FINANCIAL INFORMATION**

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

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

***Valuation      of***
**Creditor      Notes Payable**

***Income      Taxes***

*Accounting      for Income Taxes*

----

**PART      I FINANCIAL INFORMATION**

**New      Accounting Pronouncements**

*Accounting      for Uncertainty in Income Taxes*

*Fair      Value Measurements*
*,*

*The      Fair Value Option for Financial Assets and Financial      Liabilities*

----

**PART      I FINANCIAL INFORMATION**

**Results      of Operations**

*The      Quarter Ended March 31, 2007 Compared to the Quarter Ended March 31, 2006 -      Overview*

----

**PART      I FINANCIAL INFORMATION**

**Discussion      of Results**

| **For                The Quarter Ended March 31, 2007**                                                                           |   | **UAC** |    | **Coastal                Credit** |   | **Corporate                and Other** |   | **Consolidated** |                                   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|---------|---------|-----------------------------------|--------|----------------------------------------|--------|------------------|----------------------------------------|
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |
| Interest                on receivables                                                                                            |   | $       | 760     |                              | $      | 7,387                                  |   | $                | -                                      |   | $ | 8,147 |   |
| Accretion                and other interest                                                                                       |   |    | 10,289  |                              |   | -                                      |   |             | 28                                     |   |   | 10,317 |   |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| Total                interest income                                                                                              |   |    | 11,049  |                              |   | 7,387                                  |   |             | 28                                     |   |   | 18,464 |   |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| Interest                expense                                                                                                   |   |    | (446    | )                                 |   | (1,201                                 | )      |             | (343                                   | ) |   | (1,990 | ) |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| Net                interest margin                                                                                                |   |    | 10,603  |                              |   | 6,186                                  |   |             | (315                                   | ) |   | 16,474 |   |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| Recovery                (provision) for estimated credit losses                                                                   |   |    | 803     |                              |   | (1,440                                 | )      |             | -                                      |   |   | (637 | ) |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| Net                interest margin (deficit) after recovery (provision) for estimated                credit                losses |   |    | 11,406  |                              |   | 4,746                                  |   |             | (315                                   | ) |   | 15,837 |   |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| OTHER                REVENUES:                                                                                                    |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| Charge                to master trust—net                                                                                   |   |    | (1,061  | )                                 |   | -                                      |   |             | -                                      |   |   | (1,061 | ) |
| Change                in fair market valuation of creditor liabilities                                                            |   |    | (238    | )                                 |   | -                                      |   |             | -                                      |   |   | (238 | ) |
| Gain                from extinguishment of debt                                                                                   |   |    | (6,015  | )                                 |   | -                                      |   |             | 6,015                                  |   |   | - |   |
| Gain                from deficiency sale                                                                                          |   |    | 41      |                              |   | -                                      |   |             | -                                      |   |   | 41 |   |
| Other                income                                                                                                       |   |    | 223     |                              |   | (82                                    | )      |             | -                                      |   |   | 141 |   |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| Total                other revenues (charges), net                                                                                |   |    | (7,050  | )                                 |   | (82                                    | )      |             | 6,015                                  |   |   | (1,117 | ) |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| OTHER                EXPENSES:                                                                                                    |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| Salaries                and benefits                                                                                              |   |    | 68      |                              |   | 1,954                                  |   |             | 120                                    |   |   | 2,142 |   |
| Operating                expenses                                                                                                 |   |    | 139     |                              |   | 761                                    |   |             | 419                                    |   |   | 1,319 |   |
| Third                party servicing expense                                                                                      |   |    | 218     |                              |   | -                                      |   |             | -                                      |   |   | 218 |   |
| Bankruptcy                costs                                                                                                   |   |    | 6       |                              |   | -                                      |   |             | -                                      |   |   | 6 |   |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| Total                other expenses                                                                                               |   |    | 431     |                              |   | 2,715                                  |   |             | 539                                    |   |   | 3,685 |   |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| Income                before income taxes                                                                                         |   |    | 3,925   |                              |   | 1,949                                  |   |             | 5,161                                  |   |   | 11,035 |   |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| Income                tax expense                                                                                                 |   |    | -       |                              |   | -                                      |   |             | (4,024                                 | ) |   | (4,024 | ) |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| Net                income                                                                                                         |   | $       | 3,925   |                              | $      | 1,949                                  |   | $                | 1,137                                  |   | $ | 7,011 |   |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| **For                The Quarter Ended March 31, 2006**                                                                           |   |    | **UAC** |                              |   | **Coastal                Credit**      |   |             | **Corporate                and Other** |   |   | **Consolidated** |   |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| Interest                on receivables                                                                                            |   | $       | 3,185   |                              | $      | 6,847                                  |   | $                | -                                      |   | $ | 10,032 |   |
| Accretion                and other interest                                                                                       |   |    | 700     |                              |   | -                                      |   |             | 10                                     |   |   | 710 |   |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| 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 |   |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| OTHER                REVENUES:                                                                                                    |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| Charge                to master trust—net                                                                                   |   |    | (2,388  | )                                 |   | -                                      |   |             | -                                      |   |   | (2,388 | ) |
| Gain                from deficiency sale                                                                                          |   |    | 46      |                              |   | -                                      |   |             | -                                      |   |   | 46 |   |
| Other                income                                                                                                       |   |    | 155     |                              |   | (94                                    | )      |             | -                                      |   |   | 61 |   |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| Total                other revenues (charges), net                                                                                |   |    | (2,187  | )                                 |   | (94                                    | )      |             | -                                      |   |   | (2,281 | ) |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| OTHER                EXPENSES:                                                                                                    |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| Salaries                and benefits                                                                                              |   |    | 119     |                              |   | 1,804                                  |   |             | 72                                     |   |   | 1,995 |   |
| Operating                expenses                                                                                                 |   |    | 384     |                              |   | 799                                    |   |             | 441                                    |   |   | 1,624 |   |
| Third                party servicing expense                                                                                      |   |    | 703     |                              |   | -                                      |   |             | -                                      |   |   | 703 |   |
| Bankruptcy                costs                                                                                                   |   |    | 75      |                              |   | -                                      |   |             | -                                      |   |   | 75 |   |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| Total                other expenses                                                                                               |   |    | 1,281   |                              |   | 2,603                                  |   |             | 513                                    |   |   | 4,397 |   |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| Income                (loss) before income taxes                                                                                  |   |    | (274    | )                                 |   | 1,881                                  |   |             | (1,002                                 | ) |   | 605 |   |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| Income                tax benefit                                                                                                 |   |    | -       |                              |   | -                                      |   |             | 532                                    |   |   | 532 |   |
|                                                                                                                              |   |    |    |                              |   |                                   |   |             |                                   |   |   |   |   |
| Net                income                                                                                                         |   | $       | (274    | )                                 | $      | 1,881                                  |   | $                | (470                                   | ) | $ | 1,137 |   |

----

**PART      I FINANCIAL INFORMATION**

***The      Quarter Ended March 31, 2007 Compared to the Quarter Ended March 31,      2006***

|                                                                            |   | **Quarters                  Ended March 31,** |   |
|---------------------------------------------------------------------------------|--------|-----------------------------------------------|--------|
|                                                                            |   | **2007**                                      |   | **2006** |   |
|                                                                            |   |                                          |   |   |   |
| UAC                  discount accretion for beneficial interest in Master Trust |   | $                                             | 10,127 |   | $ | 480 |   |
| Interest                  on restricted cash balances                           |   |                                          | 190    |   |   | 230 |   |
|                                                                            |   |                                          |   |   |   |   |   |
| UAC                  accretion and other interest income                        |   | $                                             | 10,317 |   | $ | 710 |   |

----

**PART      I FINANCIAL INFORMATION**

----

**PART      I FINANCIAL INFORMATION**

----

**PART      I FINANCIAL INFORMATION**

**Financial      Condition as of March 31, 2007 and December 31, 2006**

***Securitized      Finance Receivables, Net***

|                                                                                                                                                                                            |   | **March                31,** |   | **December                31,** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|---------------------------------|--------|
|                                                                                                                                                                                            |   | **2007**                     |   | **2006**                        |   |
| **Securitized                Finance Receivables (1)**                                                                                                                                          |   |                         |   |                            |   |
| 2004-A1                                                                                                                                                                                         |   | $                            | 199    |                            | $      | 414 |   |
| 2004-A2                                                                                                                                                                                         |   |                         | 349    |                            |   | 637 |   |
| 2004-B                                                                                                                                                                                          |   |                         | 449    |                            |   | 855 |   |
| 2004-C                                                                                                                                                                                          |   |                         | 1,868  |                            |   | 3,424 |   |
| 2005-A                                                                                                                                                                                          |   |                         | 2,994  |                            |   | 4,913 |   |
| 2005-B                                                                                                                                                                                          |   |                         | 4,638  |                            |   | 7,227 |   |
| 2005-C                                                                                                                                                                                          |   |                         | 7,581  |                            |   | 11,330 |   |
|                                                                                                                                                                                            |   |                         | 18,078 |                            |   | 28,800 |   |
|                                                                                                                                                                                            |   |                         |   |                            |   |   |   |
| **Off-Balance                Sheet Securitizations**                                                                                                                                            |   |                         |   |                            |   |   |   |
| 2001-B                (2)                                                                                                                                                                       |   |                         | 3,320  |                            |   | 4,719 |   |
| 2001-C                                                                                                                                                                                          |   |                         | 10,482 |                            |   | 14,070 |   |
| 2002-A                                                                                                                                                                                          |   |                         | 10,999 |                            |   | 14,530 |   |
|                                                                                                                                                                                            |   |                         | 24,801 |                            |   | 33,319 |   |
|                                                                                                                                                                                            |   |                         |   |                            |   |   |   |
| Total                Portfolios                                                                                                                                                                 |   | $                            | 42,879 |                            | $      | 62,119 |   |
|                                                                                                                                                                                            |   |                         |   |                            |   |   |   |
| (1)                On-balance sheet portfolios held by UACSC as collateral for non-recourse                asset-backed notes.                                                                  |
| (2)                The 2001-B transaction represents a separate issuance of notes, or                a                separate tranche, under the UACSC 1999 Master Owner                Trust. |

***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 Three Months Ended March 31, 2007 and      2006**

----

**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, 2007** | **Remaining                Balance as a Percentage of Original Amount** | **Net                Loss Incurred to Original Amount at March 31,                2007** |
|-------------------------------------------------------------------|----------------------------------------|-----------------------------------------------------------|--------|--------------------------------------------------------|-------------------------------------------------------------------------|------------------------------------------------------------------------------------------|
|                                                              |                                   |                                                      |   |                                                   |                                                                    |                                                                                     |
| On                Balance Sheet Securitized Finance Receivables:  |                                   |                                                      |   |                                                   |
| 2004-A1                                                           | 1999-C                                 | $                  364,792                      |   | $                  199                       | 0.05%                                                                   |                  9.32%                                                              |
| 2004-A2                                                           | 1999-D                                 |                     302,693           |   |                     349            | 0.12%                                                                   | 10.80%                                                                                   |
| 2004-B                                                            | 2000-A                                 |                     282,721           |   |                     449                 | 0.16%                                                                   |                  8.90%                                                              |
| 2004-C                                                            | 2000-B                                 |                     534,294           |   |                  1,868                            | 0.35%                                                                   | 11.40%                                                                                   |
| 2005-A                                                            | 2000-C                                 |                     499,999                |   |                  2,994                            | 0.60%                                                                   |                  9.46%                                                              |
| 2005-B                                                            | 2000-D                                 |                     510,000                |   |                  4,638                            | 0.91%                                                                   | 10.07%                                                                                   |
| 2005-C                                                            | 2001-A                                 |                     573,000                |   |                  7,581                            | 1.32%                                                                   |                  9.21%                                                              |
|                                                              |                                   |                  3,067,499                           |   | 18,078                                                 |                                                                    |                                                                                     |
|                                                              |                                   |                                                      |   |                                                   |                                                                    |                                                                                     |
| Off                Balance Sheet Securitized Finance Receivables: |                                   |                                                      |   |                                                   |
| 2001-B                                                            |                                   |                     150,002                |   |                    3,320                | 2.21%                                                                   | 7.35%                                                                                    |
| 2001-C                                                            |                                   |                     330,000                |   |                  10,482                           | 3.18%                                                                   | 6.84%                                                                                    |
| 2002-A                                                            |                                   |                     300,000                |   |                  10,999                           | 3.67%                                                                   | 4.97%                                                                                    |
|                                                              |                                   |                     780,002           |   |                  24,801                           |                                                                    |                                                                                     |
|                                                              |                                   |                                                      |   |                                                   |                                                                    |                                                                                     |
| Total                                                             |                                   | $3,847,501                                                |   | $42,879                                                | 1.11%                                                                   | 8.58%                                                                                    |

----

**PART      I FINANCIAL INFORMATION**

|                                                                            |   | **March                31, 2007** |   | **December                31, 2006** |   |
|---------------------------------------------------------------------------------|--------|-----------------------------------|--------|--------------------------------------|--------|
|                                                                            |   |                              |   |                                 |   |
| **Securitized                finance receivables principal balance**            |   | $                                 | 18,078 |                                 | $      | 28,800 |   |
|                                                                            |   |                              |   |                                 |   |   |   |
| Delinquencies:                                                                  |   |                              |   |                                 |   |   |   |
| 30-59                days                                                       |   |                              | 1,578  |                                 |   | 2,812 |   |
| 60-89                days                                                       |   |                              | 496    |                                 |   | 748 |   |
| 90+                days                                                         |   |                              | 222    |                                 |   | 419 |   |
| Total                delinquencies                                              |   | $                                 | 2,296  |                                 | $      | 3,979 |   |
|                                                                            |   |                              |   |                                 |   |   |   |
| Delinquencies                as a percentage of securitized finance receivables |   |                              | 12.7   | %                                    |   | 13.8 | % |
|                                                                            |   |                              |   |                                 |   |   |   |
| **Off-balance                sheet finance receivables principal balance**      |   | $                                 | 24,801 |                                 | $      | 33,319 |   |
|                                                                            |   |                              |   |                                 |   |   |   |
| Delinquencies:                                                                  |   |                              |   |                                 |   |   |   |
| 30-59                days                                                       |   |                              | 1,115  |                                 |   | 1,929 |   |
| 60-89                days                                                       |   |                              | 320    |                                 |   | 544 |   |
| 90+                days                                                         |   |                              | 133    |                                 |   | 220 |   |
| Total                delinquencies                                              |   | $                                 | 1,568  |                                 | $      | 2,693 |   |
|                                                                            |   |                              |   |                                 |   |   |   |
| Delinquencies                as a percentage of securitized finance receivables |   |                              | 6.3    | %                                    |   | 8.1 | % |

----

**PART      I FINANCIAL INFORMATION**

|                                                                                                                  |   | **Quarters                Ended March 31,** |                          |
|-----------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|-------------------------------|
|                                                                                                                  |   | **2007**                                    |                          | **2006** |   |
|                                                                                                                  |   |                                        |                          |   |   |
| Balance                at the beginning of period                                                                     |   | $                                           | 1,617                         |   | $ | 6,503 |   |
| Charge-offs                                                                                                           |   |                                        | (1,088                        | ) |   | (4,251 | ) |
| Recoveries                                                                                                            |   |                                        | 1,155                         |   |   | 3,549 |   |
| Provision                (recovery) for estimated credit losses                                                       |   |                                        | (803                          | ) |   | (934 | ) |
|                                                                                                                  |   |                                        |                          |   |   |   |   |
| Balance                at the end of the period                                                                       |   | $                                           | 881                           |   | $ | 4,867 |   |
|                                                                                                                  |   |                                        |                          |   |   |   |   |
| Net                charge offs (recoveries)                                                                           |   | $                                           | (67                           | ) | $ | 702 |   |
| Securitized                finance receivables                                                                        |   | $                                           | 18,078                        |   | $ | 81,079 |   |
|                                                                                                                  |   |                                        |                          |   |   |   |   |
| Allowance                for loan losses as a percent of securitized finance                receivables               |   |                                        | 4.87                          | % |   | 6.00 | % |
|                                                                                                                  |   |                                        |                          |   |   |   |   |
| Annualized                net charge offs (recoveries) as a percent of securitized finance                receivables |   |                                        | (1.48                         | )% |   | 3.46 | % |
|                                                                                                                  |   |                                        |                          |   |   |   |   |
| Allowance                for loan losses as a percent of annualized net charge offs                                   |   |                                        | not                meaningful |   |   | 173.33 | % |

***Finance      Receivables***

|                                                                                |   | **March                31,** |    | **December                31,** |   |
|-------------------------------------------------------------------------------------|--------|------------------------------|---------|---------------------------------|--------|
|                                                                                |   | **2007**                     |    | **2006**                        |   |
|                                                                                |   |                         |    |                            |   |
| Finance                receivables - gross balance                                  |   | $                            | 106,250 |                            | $      | 104,399 |   |
|                                                                                |   |                         |    |                            |   |   |   |
| Delinquencies:                                                                      |   |                         |    |                            |   |   |   |
| 30-59                days                                                           |   |                         | 1,244   |                            |   | 1,261 |   |
| 60-89                days                                                           |   |                         | 770     |                            |   | 898 |   |
| 90+                days                                                             |   |                         | 1,220   |                            |   | 1,208 |   |
| Total                delinquencies                                                  |   | $                            | 3,234   |                            | $      | 3,367 |   |
|                                                                                |   |                         |    |                            |   |   |   |
| Delinquencies                as a percentage of finance receivables - gross balance |   |                         | 3.0     | %                               |   | 3.2 | % |

----

**PART      I FINANCIAL INFORMATION**

|                                                                                                                          |   | **Quarters                Ended March 31,** |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|--------|
|                                                                                                                          |   | **2007**                                    |   | **2006** |   |
| Balance                at beginning of period                                                                                 |   | $                                           | 5,694  |   | $ | 6,031 |   |
| Charge-offs,                net of recoveries                                                                                 |   |                                        | (1,440 | ) |   | (1,186 | ) |
| Provision                for estimated credit losses                                                                          |   |                                        | 1,440  |   |   | 1,071 |   |
|                                                                                                                          |   |                                        |   |   |   |   |   |
| Balance                at the end of the period                                                                               |   | $                                           | 5,694  |   | $ | 5,916 |   |
|                                                                                                                          |   |                                        |   |   |   |   |   |
| Net                charge offs                                                                                                |   | $                                           | 1,440  |   | $ | 1,186 |   |
| Finance                receivables, net of unearned finance charges                                                           |   | $                                           | 98,357 |   | $ | 91,381 |   |
|                                                                                                                          |   |                                        |   |   |   |   |   |
| Allowance                for loan losses as a percent of finance receivables, net of unearned                finance charges  |   |                                        | 5.79   | % |   | 6.47 | % |
|                                                                                                                          |   |                                        |   |   |   |   |   |
| Annualized                net charge offs as a percent of finance receivables, net of unearned                finance charges |   |                                        | 5.86   | % |   | 5.19 | % |
|                                                                                                                          |   |                                        |   |   |   |   |   |
| Allowance                for loan losses as a percent of annualized net charge offs                                           |   |                                        | 98.85  | % |   | 124.70 | % |

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

|   | § | the                risks and uncertainties discussed in White River’s 2006 Annual Report on                Form 10-K; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|

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

----

**PART      I FINANCIAL INFORMATION**

|   | § | 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 OTHER INFORMATION**

**PART      II**

----

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

**ITEM      6. EXHIBITS.**

| 4.1    | Third                  Amendment to Finance Agreement, dated January 2, 2007, between                  Coastal                  Credit LLC and Wells Fargo Financial Preferred Capital, Inc. (incorporated                  by reference to Exhibit 4.8(d) of registrant's annual report of                  Form 10-K                  for 2006) |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                              |
| 31.1   | Certification                  by Chief Executive Officer required by Rule 13a-14(a) or 15d-14(a)                  of the                  Exchange Act                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                              |
| 31.2   | Certification                  by Chief Financial Officer required by Rule 13a-14(a) or 15d-14(a)                  of the                  Exchange Act                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                              |
| 32     | Section                  1350 Certifications                                                                                                                                                                                                                                                                                                      |

----

**SIGNATURES**

|                                       |   | **White                River Capital, Inc.**                                                       |
|--------------------------------------------|--------|----------------------------------------------------------------------------------------------------|
|                                       |   | (Registrant)                                                                                       |
|                                       |   |                                                                                               |
| May                11,                2007 | By:    | /s/              Martin J. Szumski                                                                 |
|                                       |   | Martin                J. Szumski                                                                   |
|                                       |   | Chief                Financial Officer                                                             |
|                                       |   | (Signing                on behalf of the registrant as Principal Financial                Officer) |