**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D. C. 20549**

**FORM      10-Q**

**For      the quarter ended June 30, 2005**

**000-51493**

**WHITE      RIVER CAPITAL, INC.**

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

**250      North Shadeland Avenue**

**Indianapolis,      Indiana 46219**

**(317)      806-2166**

**As      of August 25, 2005, there were 310,191 shares outstanding of the issuer’s Common      Stock, without par value.**

----

**WHITE RIVER CAPITAL, INC.**

**FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2005**

**-      INDEX -**

| **PART                I.**  | **FINANCIAL                INFORMATION**                                                                                                                         | **PAGE** |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
|                        |                                                                                                                                                             |     |
| **Item                1.**  | **Financial                Statements**                                                                                                                          |     |
|                        |                                                                                                                                                             |     |
|                        | Unaudited                Condensed Balance Sheets as of June 30, 2005 and December 31,                2004                                                       | 1        |
|                        |                                                                                                                                                             |     |
|                        | Unaudited                Condensed Statement of Operations for the three month period and                the six                month period ended June 30, 2005 | 2        |
|                        |                                                                                                                                                             |     |
|                        | Unaudited                Condensed Statement of Cash Flows for the six month period ended                June 30,                2005                            | 3        |
|                        |                                                                                                                                                             |     |
|                        | Notes                to Unaudited Condensed Financial Statements                                                                                                 | 4        |
|                        |                                                                                                                                                             |     |
| **Item                2.**  | **Management’s                Discussion and Analysis of Financial Condition and Results of                Operations**                                    | 8        |
|                        |                                                                                                                                                             |     |
| **Item                4.**  | **Controls                and Procedures**                                                                                                                       | 10       |
|                        |                                                                                                                                                             |     |
| **PART                II.** | **OTHER                INFORMATION**                                                                                                                             |     |
|                        |                                                                                                                                                             |     |
| **Item                2.**  | **Unregistered                Sales of Equity Securities and Use of Proceeds**                                                                                   | 11       |
|                        |                                                                                                                                                             |     |
| **Item                4**.  | **Submission                of Matters to Vote of Security Holders**                                                                                             | 11       |
|                        |                                                                                                                                                             |     |
| **Item                5.**  | **Other                Information**                                                                                                                             | 11       |
|                        |                                                                                                                                                             |     |
| **Item                6.**  | **Exhibits                and Reports on Form 8-K**                                                                                                              | 22       |
|                        |                                                                                                                                                             |     |
| **SIGNATURES**              | 23                                                                                                                                                               |

----

**PART        I FINANCIAL INFORMATION**

|   | **Item                1.** | **Financial                Statements** |
|--------|----------------------------|-----------------------------------------|

**WHITE      RIVER CAPITAL, INC.**

**CONDENSED      BALANCE SHEETS**

**(Unaudited)**

|                                                                       |   | **June 30,** |      | **Decemeber 31,** |   |
|----------------------------------------------------------------------------|--------|-------------------|-----------|------------------------|--------|
| **ASSETS**                                                                 |   | **2005**          |      | **2004**               |   |
|                                                                       |   |              |      |                   |   |
| Cash                                                                       |   | $                 | 185,360   |                   | $      | - |   |
| Note                receivable - related party                             |   |              | 2,126,240 |                   |   |  |   |
| Deferred                costs                                              |   |              | 1,898,406 |                   |   | 633,809 |   |
| Property                and equipment, net                                 |   |              | 3,013     |                   |   |  |   |
| Other                assets                                                |   |              | 6,249     |                   |   | - |   |
|                                                                       |   |              |           |                   |   |  |   |
| TOTAL                                                                      |   | $                 | 4,219,268 |                   | $      | 633,809 |   |
|                                                                       |   |              |           |                   |   |  |   |
|                                                                       |   |              |           |                   |   |  |   |
| **LIABILITIES                AND SHAREHOLDERS’ EQUITY (DEFICIENCY)** |   |              |           |                   |   |  |   |
|                                                                       |   |              |           |                   |   |  |   |
| LIABILITIES:                                                               |   |              |           |                   |   |  |   |
| Secured                bridge note payable to Castle Creek                 |   | $                 | 2,275,000 |                   | $      | - |   |
| Due                to Castle Creek                                         |   |              | 1,897,031 |                   |   | 633,809 |   |
| Revolving                note payable to Castle Creek                      |   |              | 100,000   |                   |   | - |   |
| Other                payables and accrued expenses                         |   |              | 17,376    |                   |   | - |   |
|                                                                       |   |              |           |                   |   |  |   |
| Total                liabilities                                           |   |              | 4,289,407 |                   |   | 633,809 |   |
|                                                                       |   |              |           |                   |   |  |   |
| 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; none issued and outstanding              |   |              | -         |                   |   | - |   |
| Accumulated                deficit                                         |   |              | (70,139   | )                      |   | - |   |
|                                                                       |   |              |           |                   |   |  |   |
| Total                shareholders’ equity (deficiency)               |   |              | (70,139   | )                      |   | - |   |
|                                                                       |   |              |           |                   |   |  |   |
| TOTAL                                                                      |   | $                 | 4,219,268 |                   | $      | 633,809 |   |

----

**PART          I FINANCIAL INFORMATION -          CONTINUED**

|   | **Item                1.** | **Financial                Statements - Continued** |
|--------|----------------------------|-----------------------------------------------------|

**WHITE      RIVER CAPITAL, INC.**

**CONDENSED      STATEMENT OF OPERATIONS**

**(Unaudited)**

| **REVENUE**                                       |   | **Three                and Six Months Ended June 30, 2005** |    |
|---------------------------------------------------|--------|------------------------------------------------------------------|---------|
|                                              |   |                                                             |    |
| Investment                income                  |   | $                                                                | 13,389  |   |
|                                              |   |                                                             |         |   |
| TOTAL                REVENUE                      |   |                                                             | 13,389  |   |
|                                              |   |                                                             |         |   |
|                                              |   |                                                             |         |   |
| **COSTS                AND EXPENSES**             |   |                                                             |         |   |
|                                              |   |                                                             |         |   |
| Operating                expense                  |   |                                                             | 76,621  |   |
| Interest                expense                   |   |                                                             | 6,907   |   |
|                                              |   |                                                             |         |   |
| TOTAL                COSTS AND EXPENSES           |   |                                                             | 83,528  |   |
|                                              |   |                                                             |         |   |
| **LOSS                BEFORE INCOME TAX BENEFIT** |   |                                                             | (70,139 | ) |
|                                              |   |                                                             |         |   |
| **INCOME                TAX BENEFIT**             |   |                                                             | -       |   |
|                                              |   |                                                             |         |   |
| **NET                LOSS**                       |   | $                                                                | (70,139 | ) |

----

**PART          I FINANCIAL INFORMATION - CONTINUED**

|   | **Item                1.** | **Financial                Statements - Continued** |
|--------|----------------------------|-----------------------------------------------------|

**WHITE      RIVER CAPITAL, INC.**

**CONDENSED      STATEMENT OF CASH FLOWS**

**(Unaudited)**

|                                                                                                                        |   | **Six                  Months Ended June 30, 2005** |       |
|-----------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|------------|
| CASH                  FLOWS FROM OPERATING ACTIVITIES:                                                                      |   |                                                     |       |
| Net                  loss                                                                                                   |   | $                                                        | (70,139    | ) |
| Adjustments                  to reconcile net loss to net cash provided by (used in) operating                  activities: |   |                                                     |       |   |
| Amortization                  and depreciation                                                                              |   |                                                     | 177        |   |
| Changes                  in assets and liabilities:                                                                         |   |                                                     |            |   |
| Other                  assets                                                                                               |   |                                                     | (6,249     | ) |
| Other                  payables and accrued expenses                                                                        |   |                                                     | 17,376     |   |
|                                                                                                                        |   |                                                     |            |   |
| Net                  cash used in operating activities                                                                      |   |                                                     | (58,835    | ) |
|                                                                                                                        |   |                                                     |            |   |
| CASH                  FLOWS FROM INVESTING ACTIVITIES:                                                                      |   |                                                     |            |   |
| Purchase                  of note receivable - related party                                                                |   |                                                     | (2,126,240 | ) |
| Purchase                  of property and equipment                                                                         |   |                                                     | (3,190     | ) |
|                                                                                                                        |   |                                                     |       |   |
| Net                  cash used in investing activities                                                                      |   |                                                     | (2,129,430 | ) |
|                                                                                                                        |   |                                                     |       |   |
| CASH                  FLOWS FROM FINANCING ACTIVITIES:                                                                      |   |                                                     |            |   |
| Proceeds                  from secured bridge note payable to Castle Creek                                                  |   |                                                     | 2,275,000  |   |
| Proceeds                  from revolving note payable to Castle Creek                                                       |   |                                                     | 100,000    |   |
| Deferred                  costs related to equity offering                                                                  |   |                                                     | (1,375     | ) |
|                                                                                                                        |   |                                                     |            |   |
| Net                  cash provided by financing activities                                                                  |   |                                                     | 2,373,625  |   |
|                                                                                                                        |   |                                                     |            |   |
| INCREASE                  IN CASH AND CASH EQUIVALENTS                                                                      |   |                                                     | 185,360    |   |
|                                                                                                                        |   |                                                     |            |   |
| CASH                  AND CASH EQUIVALENTS—Beginning of year                                                          |   |                                                     | -          |   |
|                                                                                                                        |   |                                                     |            |   |
| CASH                  AND CASH EQUIVALENTS—End of year                                                                |   | $                                                        | 185,360    |   |
|                                                                                                                        |   |                                                     |            |   |
| SUPPLEMENTAL                  DISCLOSURES OF CASH FLOW INFORMATION:                                                         |   |                                                     |            |   |
| Interest                  paid                                                                                              |   | $                                                        | -          |   |

----

**PART          I FINANCIAL INFORMATION -          CONTINUED**

|   | **Item                1.** | **Financial                Statements - Continued** |
|--------|----------------------------|-----------------------------------------------------|

| **WHITE                RIVER CAPITAL, INC.****NOTES                TO CONDENSED FINANCIAL STATEMENTS****THREE                AND SIX MONTHS ENDED JUNE 30, 2005****(Unaudited)** |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | · | a                share exchange for White River common shares by UAC common                shareholders; |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | a                $35 million subscription rights equity offering by White                River; |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | · | a                $15 million note issuance by White                River; |
|--------|--------|---------------------------------------------------------------------------|

|   | · | the                acquisition of an auto finance company for $50 million                and; |
|--------|--------|-----------------------------------------------------------------------------------------------|

|   | · | the                buyout of substantially all of the UAC restructured senior notes                (“Senior                Notes”), restructured subordinated notes (“Subordinated Notes”), and their                accompanying accrual notes (“Accrual                Notes”). |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**PART          I FINANCIAL INFORMATION -          CONTINUED**

|   | **Item                1.** | **Financial                Statements - Continued** |
|--------|----------------------------|-----------------------------------------------------|

|   | 1. | the                share exchange agreement between UAC and White                River; |
|--------|----|-----------------------------------------------------------------------------------------|

|   | 2. | the                acquisition of the auto finance                company; |
|--------|----|----------------------------------------------------------------------------|

|   | 3. | the                issuance of a warrant to purchase White River common stock to Castle                Creek, who has advanced funds in connection with the described                transactions and has assisted in developing, structuring and implementing                the transactions and; |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | the                $15 million note placement                agreement. |
|--------|----|-------------------------------------------------------------------------|

**3.**
**NOTES      RECEIVABLE - RELATED PARTY**

----

**PART          I FINANCIAL INFORMATION -          CONTINUED**

|   | **Item                1.** | **Financial                Statements - Continued** |
|--------|----------------------------|-----------------------------------------------------|

**4.**
**DEFERRED      COSTS**

**5.**
**SECURED      BRIDGE NOTE PAYABLE TO CASTLE CREEK**

**6.**
**DUE      TO CASTLE CREEK**

**7.**
**REVOLVING      NOTE PAYABLE TO CASTLE CREEK**

**8.**
**SUBSEQUENT      EVENTS**

----

**PART          I FINANCIAL INFORMATION -          CONTINUED**

|   | **Item                1.** | **Financial                Statements - Continued** |
|--------|----------------------------|-----------------------------------------------------|

|   | 1. | The                adoption of an agreement and plan of share exchange with White                River. |
|--------|----|---------------------------------------------------------------------------------------------------------|

|   | 2. | The                purchase agreement among White River, Coastal Credit and Coastal                Credit’s                members, which provides for the sale by the members of Coastal Credit                of                their equity interest in Coastal Credit to White River at an aggregate                price of approximately $50 million in cash. It is anticipated that                the                closing date for the acquisition of Coastal Credit by White River                will be                August 31, 2005. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | The                issuance by White River to private equity funds managed by Castle                Creek of                warrants to acquire 150,000 shares of White River common stock for                $10.00                per share, with a term of three years and 90 days and first exercisable                three years after issuance. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**PART          I FINANCIAL INFORMATION -          CONTINUED**

|   | **Item                2.** | **Management’s                Discussion and Analysis of Financial Condition and Results of                Operations** |
|--------|----------------------------|-------------------------------------------------------------------------------------------------------------------------------|

**General**

**Results      of Operations for the Three Months Ended June 30, 2005**

***Investment      Income***

***Operating      Expenses***

***Interest      Expense***

**Financial      Condition as of June 30, 2005**

***Note      Receivable - Related Party***

***Deferred      Costs***

----

**PART          I FINANCIAL INFORMATION - CONTINUED**

|   | **Item                2.** | **Management’s                Discussion and Analysis of Financial Condition and Results of                Operations** |
|--------|----------------------------|-------------------------------------------------------------------------------------------------------------------------------|

***Secured      Bridge Note to Castle Creek***

***Due      to Castle Creek***

***Revolving      Note to Castle Creek***

***Other      Payables and Accrued Expenses***

|                                                     |   | **June                30, 2005** |   |
|----------------------------------------------------------|--------|----------------------------------|--------|
|                                                     |   |                             |   |
| Accrued                expense                           |   | $                                | 10,469 |   |
| Accrued                interest expense                  |   |                             | 6,907  |   |
| Total                other payables and accrued expenses |   | $                                | 17,376 |   |

**Liquidity      and Capital Resources for the Six Months Ended June 30,      2005**

----

**PART          I FINANCIAL INFORMATION - CONTINUED**

|   | **Item                2.** | **Management’s                Discussion and Analysis of Financial Condition and Results of                Operations** |
|--------|----------------------------|-------------------------------------------------------------------------------------------------------------------------------|

**DISCUSSION      OF FORWARD-LOOKING STATEMENTS**

|   | **Item                4.** | **Controls                and Procedures** |
|--------|----------------------------|--------------------------------------------|

*Disclosure      Controls and Procedures*
* *

----

**PART          II            OTHER INFORMATION**

|   | **Item                2.** | **Unregistered                Sales of Equity Securities and Use of                Proceeds.** |
|--------|----------------------------|------------------------------------------------------------------------------------------------|

|   | **Item                4.** | **Submission                of Matters to a Vote of Security                Holders.** |
|--------|----------------------------|----------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                  | **Votes**  |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
| **Matter**                                                                                                                                                                                                                            | **For**    | **Against** | **Abstain** |
| 1.  Adoption                  of the Agreement and Plan of Share Exchange with White                  River                                                                                                                 | 24,293,586 | 40,200 | 980 |
|                                                                                                                                                                                                                                  |       |   |   |
| 2.  Approval                  of the Purchase Agreement among White River, Coastal Credit, LLC                  and the                  members of Coastal Credit, LLC                                                     | 24,256,582 | 74,804 | 3,380 |
|                                                                                                                                                                                                                                  |       |   |   |
| 3.  Ratification                  of issuance of warrants for 150,000 shares of common stock of White                  River                  to private equity funds managed by Castle Creek Capital,                  LLC | 23,933,807 | 397,579 | 3,380 |

|   | **Item                5.** | **Other                Information** |
|--------|----------------------------|--------------------------------------|

**SUPPLEMENTAL      INFORMATION - UNION ACCEPTANCE CORPORATION**

----

**PART II   OTHER INFORMATION -        CONTINUED**

|   | **Item                  5.** | **Other                  Information - Continued** |
|--------|------------------------------|----------------------------------------------------|

**UNION        ACCEPTANCE CORPORATION AND SUBSIDIARIES**

**CONDENSED        CONSOLIDATED BALANCE SHEETS**

**(Unaudited)**

**(Dollars        in thousands)**

|                                                                                      |   | **June                    30,** |     | ** December                    31,** |   |
|-------------------------------------------------------------------------------------------|--------|---------------------------------|----------|-------------------------------------------|--------|
| **ASSETS**                                                                                |   | **2005**                        |     | **2004**                                  |   |
|                                                                                      |   |                            |     |                                      |   |
| CASH                    AND CASH EQUIVALENTS                                              |   | $                               | 2,162    |                                      | $      | 3,745 |   |
|                                                                                      |   |                            |          |                                      |   |  |   |
| RESTRICTED                    CASH                                                        |   |                            | 28,875   |                                      |   | 23,530 |   |
|                                                                                      |   |                            |          |                                      |   |  |   |
| FINANCE                    RECEIVABLES—Net                                          |   |                            | 130,053  |                                      |   | 115,165 |   |
|                                                                                      |   |                            |          |                                      |   |  |   |
| BENEFICIAL                    INTEREST IN MASTER TRUST                                    |   |                            | 7,517    |                                      |   | 3,677 |   |
|                                                                                      |   |                            |          |                                      |   |  |   |
| OTHER                    ASSETS                                                           |   |                            | 3,479    |                                      |   | 4,179 |   |
|                                                                                      |   |                            |          |                                      |   |  |   |
| TOTAL                                                                                     |   | $                               | 172,086  |                                      | $      | 150,296 |   |
|                                                                                      |   |                            |          |                                      |   |  |   |
|                                                                                      |   |                            |          |                                      |   |  |   |
| **LIABILITIES                    AND SHAREHOLDERS’ DEFICIT**                        |   |                            |          |                                      |   |  |   |
|                                                                                      |   |                            |          |                                      |   |  |   |
| LIABILITIES:                                                                              |   |                            |          |                                      |   |  |   |
| Collateralized                    financings                                              |   | $                               | 151,347  |                                      | $      | 132,257 |   |
| Accrued                    interest payable                                               |   |                            | 5,910    |                                      |   | 7,100 |   |
| Amounts                    due to master trust                                            |   |                            | 7,112    |                                      |   | 6,640 |   |
| Creditor                    notes payable                                                 |   |                            | 10,021   |                                      |   | 11,445 |   |
| Other                    payables and accrued expenses                                    |   |                            | 1,037    |                                      |   | 1,156 |   |
|                                                                                      |   |                            |          |                                      |   |  |   |
| Total                    liabilities                                                      |   |                            | 175,427  |                                      |   | 158,598 |   |
|                                                                                      |   |                            |          |                                      |   |  |   |
| SHAREHOLDERS’                    DEFICIT:                                           |   |                            |          |                                      |   |  |   |
| Preferred                    stock, without par value—authorized 10,000,000 shares; |   |                            |          |                                      |   |  |   |
| none                    issued and outstanding                                            |   |                            |          |                                      |   |  |   |
| Common                    stock, without par value—authorized 130,000,000 shares;   |   |                            |          |                                      |   |  |   |
| 31,019,150                    shares issued and outstanding                               |   |                            | 145,900  |                                      |   | 145,900 |   |
| Accumulated                    other comprehensive income                                 |   |                            | 6,651    |                                      |   | 1,943 |   |
| Accumulated                    deficit                                                    |   |                            | (155,892 | )                                         |   | (156,145 | ) |
|                                                                                      |   |                            |          |                                      |   |  |   |
| Total                    shareholders’ deficit                                      |   |                            | (3,341   | )                                         |   | (8,302 | ) |
|                                                                                      |   |                            |          |                                      |   |  |   |
| TOTAL                                                                                     |   | $                               | 172,086  |                                      | $      | 150,296 |   |

----

**PART II   OTHER INFORMATION -      CONTINUED**

|   | **Item                5.** | **Other                Information - Continued** |
|--------|----------------------------|--------------------------------------------------|

**UNION      ACCEPTANCE CORPORATION AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF OPERATIONS**

**(Unaudited)**

**(Dollars      in thousands, except per share amounts)**

|                                                                                                       |   | **Quarter                Ended June 30,** |       | **Six                Months Ended June 30,** |   |
|------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|------------|---------------------------------------------------|--------|
|                                                                                                       |   | **2005**                                       |       | **2004**                                          |   | **2005** |   | **2004** |   |
| INTEREST:                                                                                                  |   |                                           |       |                                              |   |   |   |   |   |
| Interest                on receivables                                                                     |   | $                                              | 5,407      |                                              | $      | 3,278 |   | $ | 9,887 |   | $ | 5,948 |   |
| Accretion                and other interest                                                                |   |                                           | 4,169      |                                              |   | 218 |   |   | 5,719 |   |   | 430 |   |
|                                                                                                       |   |                                           |            |                                              |   |  |   |   |  |   |   |  |   |
| Total                interest income                                                                       |   |                                           | 9,576      |                                              |   | 3,496 |   |   | 15,606 |   |   | 6,378 |   |
|                                                                                                       |   |                                           |            |                                              |   |  |   |   |  |   |   |  |   |
| Interest                expense                                                                            |   |                                           | (4,381     | )                                                 |   | (3,211 | ) |   | (8,404 | ) |   | (6,207 | ) |
|                                                                                                       |   |                                           |            |                                              |   |  |   |   |  |   |   |  |   |
| Net                interest margin                                                                         |   |                                           | 5,195      |                                              |   | 285 |   |   | 7,202 |   |   | 171 |   |
|                                                                                                       |   |                                           |            |                                              |   |  |   |   |  |   |   |  |   |
| Provision                for estimated credit losses                                                       |   |                                           | (1,363     | )                                                 |   | (3,256 | ) |   | (1,812 | ) |   | (4,199 | ) |
|                                                                                                       |   |                                           |            |                                              |   |  |   |   |  |   |   |  |   |
| Net                interest margin (deficiency) after provision for estimated credit                losses |   |                                           | 3,832      |                                              |   | (2,971 | ) |   | 5,390 |   |   | (4,028 | ) |
|                                                                                                       |   |                                           |            |                                              |   |  |   |   |  |   |   |  |   |
| OTHER                REVENUES:                                                                             |   |                                           |            |                                              |   |  |   |   |  |   |   |  |   |
| (Charge)                credit to master trust—net                                                   |   |                                           | (1,429     | )                                                 |   | 1,556 |   |   | (3,052 | ) |   | 1,137 |   |
| Other                income                                                                                |   |                                           | 155        |                                              |   | 717 |   |   | 413 |   |   | 1,586 |   |
|                                                                                                       |   |                                           |            |                                              |   |  |   |   |  |   |   |  |   |
| Total                other revenues (charges), net                                                         |   |                                           | (1,274     | )                                                 |   | 2,273 |   |   | (2,639 | ) |   | 2,723 |   |
|                                                                                                       |   |                                           |            |                                              |   |  |   |   |  |   |   |  |   |
| OTHER                EXPENSES:                                                                             |   |                                           |            |                                              |   |  |   |   |  |   |   |  |   |
| Salaries                and benefits                                                                       |   |                                           | 78         |                                              |   | 79 |   |   | 171 |   |   | 204 |   |
| Operating                expenses                                                                          |   |                                           | 141        |                                              |   | 361 |   |   | 530 |   |   | 582 |   |
| Third                party servicing expense                                                               |   |                                           | 817        |                                              |   | 582 |   |   | 1,627 |   |   | 1,081 |   |
| Bankruptcy                costs                                                                            |   |                                           | 61         |                                              |   | 117 |   |   | 170 |   |   | 300 |   |
|                                                                                                       |   |                                           |            |                                              |   |  |   |   |  |   |   |  |   |
| Total                other expenses                                                                        |   |                                           | 1,097      |                                              |   | 1,139 |   |   | 2,498 |   |   | 2,167 |   |
|                                                                                                       |   |                                           |            |                                              |   |  |   |   |  |   |   |  |   |
| INCOME                (LOSS) BEFORE INCOME TAXES                                                           |   |                                           | 1,461      |                                              |   | (1,837 | ) |   | 253 |   |   | (3,472 | ) |
|                                                                                                       |   |                                           |            |                                              |   |  |   |   |  |   |   |  |   |
| INCOME                TAXES                                                                                |   |                                           | -          |                                              |   | - |   |   | - |   |   | - |   |
|                                                                                                       |   |                                           |            |                                              |   |  |   |   |  |   |   |  |   |
| NET                INCOME (LOSS)                                                                           |   | $                                              | 1,461      |                                              | $      | (1,837 | ) | $ | 253 |   | $ | (3,472 | ) |
|                                                                                                       |   |                                           |            |                                              |   |  |   |   |  |   |   |  |   |
| NET                INCOME (LOSS) PER COMMON SHARE (BASIC AND DILUTED)                                      |   | $                                              | 0.05       |                                              | $      | (0.06 | ) | $ | 0.01 |   | $ | (0.11 | ) |
|                                                                                                       |   |                                           |            |                                              |   |  |   |   |  |   |   |  |   |
| BASIC                AND DILUTED WEIGHTED AVERAGE NUMBER OF COMMON SHARES                OUTSTANDING       |   |                                           |            |                                              |   |  |   |   |  |   |   |  |   |
|                                                                                                       |   |                                           | 31,019,150 |                                              |   | 31,019,150 |   |   | 31,019,150 |   |   | 31,019,150 |   |

----

**PART II   OTHER INFORMATION -      CONTINUED**

|   | **Item                5.** | **Other                Information - Continued** |
|--------|----------------------------|--------------------------------------------------|

**UNION      ACCEPTANCE CORPORATION AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME**

**(Unaudited)**

**(Dollars      in thousands)**

|                                                                  |   | **Quarters                Ended June 30,** |   | **Six                Months Ended June 30,** |   |
|-----------------------------------------------------------------------|--------|--------------------------------------------|--------|----------------------------------------------|--------|
|                                                                  |   | **2005**                                   |   | **2004**                                     |   | **2005** |   | **2****004** |   |
|                                                                  |   |                                       |   |                                         |   |   |   |   |   |
| NET                INCOME (LOSS)                                      |   | $                                          | 1,461  |                                         | $      | (1,837 | ) | $ | 253 |   | $ | (3,472 | ) |
|                                                                  |   |                                       |        |                                         |   |  |   |   |  |   |   |  |   |
| OTHER                COMPREHENSIVE INCOME:                            |   |                                       |        |                                         |   |  |   |   |  |   |   |  |   |
| Unrealized                gain on Beneficial Interest in Master Trust |   |                                       | 6,263  |                                         |   | 408 |   |   | 10,103 |   |   | 408 |   |
| Reclassed                unrealized gain to net income                |   |                                       | (3,970 | )                                            |   | - |   |   | (5,395 | ) |   | - |   |
| Net                other comprehensive income                         |   |                                       | 2,293  |                                         |   | 408 |   |   | 4,708 |   |   | 408 |   |
|                                                                  |   |                                       |        |                                         |   |  |   |   |  |   |   |  |   |
| COMPREHENSIVE                INCOME (LOSS)                            |   | $                                          | 3,754  |                                         | $      | (1,429 | ) | $ | 4,961 |   | $ | (3,064 | ) |

----

**PART II   OTHER INFORMATION -      CONTINUED**

|   | **Item                5.** | **Other                Information - Continued** |
|--------|----------------------------|--------------------------------------------------|

**UNION      ACCEPTANCE CORPORATION AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Unaudited)**

**(Dollars      in thousands)**

|                                                                                                                                            |   | **Six                Months Ended June 30,** |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|---------|
|                                                                                                                                            |   | **2005**                                     |    | **2004** |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES:                                                                                            |   |                                         |    |   |   |
| Net                income (loss)                                                                                                                |   | $                                            | 253     |   | $ | (3,472 | ) |
| Adjustments                to reconcile net income (loss) to net cash provided by (used in)                operating                activities: |   |                                         |         |   |   |  |   |
| Accretion                of discount                                                                                                            |   |                                         | (5,395  | ) |   | (324 | ) |
| Provision                for estimated credit losses                                                                                            |   |                                         | 1,812   |   |   | 4,199 |   |
| Amortization                and depreciation                                                                                                    |   |                                         | 13      |   |   | 13 |   |
| Amortization                of discount and interest accrued on creditor notes payable                                                          |   |                                         | 4,649   |   |   | 4,238 |   |
| Changes                in assets and liabilities:                                                                                               |   |                                         |         |   |   |  |   |
| Other                assets and accrued interest receivable                                                                                     |   |                                         | 1,403   |   |   | 3,301 |   |
| Amounts                due to master trust                                                                                                      |   |                                         | 472     |   |   | 1,258 |   |
| Payment                of creditor notes payable accrued interest                                                                               |   |                                         | (3,908  | ) |   | (506 | ) |
| Other                payables and accrued expenses                                                                                              |   |                                         | (40     | ) |   | (1,678 | ) |
|                                                                                                                                            |   |                                         |         |   |   |  |   |
| Net                cash provided by (used in) operating activities                                                                              |   |                                         | (741    | ) |   | 7,029 |   |
|                                                                                                                                            |   |                                         |         |   |   |  |   |
| CASH                FLOWS FROM INVESTING ACTIVITIES:                                                                                            |   |                                         |         |   |   |  |   |
| Collections                on retained interest/beneficial interest in master trust                                                             |   |                                         | 6,264   |   |   | 433 |   |
| Purchase                of finance receivables                                                                                                  |   |                                         | (96,120 | ) |   | (61,067 | ) |
| Principal                collections and recoveries on finance receivables                                                                      |   |                                         | 78,703  |   |   | 48,724 |   |
| Change                in restricted cash                                                                                                        |   |                                         | (5,345  | ) |   | (3,851 | ) |
| Capital                expenditures                                                                                                             |   |                                         | -       |   |   | (9 | ) |
|                                                                                                                                            |   |                                         |         |   |   |  |   |
| Net                cash used in investing activities                                                                                            |   |                                         | (16,498 | ) |   | (15,770 | ) |
|                                                                                                                                            |   |                                         |         |   |   |  |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES:                                                                                            |   |                                         |         |   |   |  |   |
| Proceeds                from collateralized financings                                                                                          |   |                                         | 98,426  |   |   | 58,783 |   |
| Principal                payments on collateralized financings                                                                                  |   |                                         | (79,337 | ) |   | (48,904 | ) |
| Principal                payments on creditor notes payable                                                                                     |   |                                         | (3,433  | ) |   | (5,483 | ) |
|                                                                                                                                            |   |                                         |         |   |   |  |   |
| Net                cash provided by financing activities                                                                                        |   |                                         | 15,656  |   |   | 4,396 |   |
|                                                                                                                                            |   |                                         |         |   |   |  |   |
| DECREASE                IN CASH AND CASH EQUIVALENTS                                                                                            |   |                                         | (1,583  | ) |   | (4,345 | ) |
|                                                                                                                                            |   |                                         |         |   |   |  |   |
| CASH                AND CASH EQUIVALENTS—Beginning of year                                                                                |   |                                         | 3,745   |   |   | 8,661 |   |
|                                                                                                                                            |   |                                         |         |   |   |  |   |
| CASH                AND CASH EQUIVALENTS—End of year                                                                                      |   | $                                            | 2,162   |   | $ | 4,316 |   |
|                                                                                                                                            |   |                                         |         |   |   |  |   |
| SUPPLEMENTAL                DISCLOSURES OF CASH FLOW INFORMATION:                                                                               |   |                                         |         |   |   |  |   |
| Income                tax refunds                                                                                                               |   | $                                            | 12      |   | $ | 75 |   |
|                                                                                                                                            |   |                                         |         |   |   |  |   |
| Interest                paid                                                                                                                    |   | $                                            | 7,378   |   | $ | 2,327 |   |

----

**PART II   OTHER INFORMATION -      CONTINUED**

|   | **Item                5.** | **Other                Information - Continued** |
|--------|----------------------------|--------------------------------------------------|

| **WHITE                RIVER CAPITAL, INC.****NOTES                TO CONDENSED FINANCIAL STATEMENTS****THREE                AND SIX MONTHS ENDED JUNE 30, 2005****(Unaudited)** |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | · | a                share exchange for White River common shares by UAC common                shareholders; |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | a                $35 million subscription rights equity offering by White                River; |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | · | a                $15 million note issuance by White River                ; |
|--------|--------|----------------------------------------------------------------------------|

|   | · | the                acquisition of an auto finance company for $50 million;                and |
|--------|--------|-----------------------------------------------------------------------------------------------|

|   | · | the                buyout of substantially all of the restructured senior and subordinated                notes of UAC. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

----

**PART      II   OTHER INFORMATION -      CONTINUED**

|   | **Item                5.** | **Other                Information - Continued** |
|--------|----------------------------|--------------------------------------------------|

|   | 1. | the                share exchange agreement between UAC and White                River; |
|--------|----|-----------------------------------------------------------------------------------------|

|   | 2. | the                acquisition of the auto finance company by White                River; |
|--------|----|-------------------------------------------------------------------------------------------|

|   | 3. | the                issuance of a warrant to purchase White River common stock to a certain                large shareholder of UAC who has advanced funds in connection with                the                above transactions and has assisted in developing, structuring and                implementing the transactions. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

**PART II   OTHER INFORMATION -      CONTINUED**

|   | **Item                5.** | **Other                Information - Continued** |
|--------|----------------------------|--------------------------------------------------|

|                                                             |   | **June 30,                2005** |   | **December 31,                2004** |   |
|------------------------------------------------------------------|--------|---------------------------------------|--------|-------------------------------------------|--------|
|                                                             |   |                                  |   |                                      |   |
| Finance                receivables—net                     |   | $                                     | 130.1  |                                      | $      | 115.2 |   |
| Restricted                cash                                   |   |                                  | 28.9   |                                      |   | 23.5 |   |
| Receivable                from servicer included in other assets |   |                                  | 0.6    |                                      |   | 1.2 |   |
| Collateralized                financings                         |   |                                  | (151.3 | )                                         |   | (132.3 | ) |
| Accrued                interest payable                          |   |                                  | (0.6   | )                                         |   | (0.5 | ) |
| Other                payables and accrued expenses               |   |                                  | (0.6   | )                                         |   | (0.5 | ) |
|                                                             |   |                                  |        |                                      |   |  |   |
| Amounts                due to master trust                       |   | $                                     | 7.1    |                                      | $      | 6.6 |   |

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

|                                                    |   | **June 30,                2005** |    | **December 31,                2004** |   |
|---------------------------------------------------------|--------|---------------------------------------|---------|-------------------------------------------|--------|
|                                                    |   |                                  |    |                                      |   |
| Principal                balance of finance receivables |   | $                                     | 142,338 |                                      | $      | 125,866 |   |
| Accrued                interest receivable              |   |                                  | 1,140   |                                      |   | 1,021 |   |
| Allowance                for credit losses              |   |                                  | (13,425 | )                                         |   | (11,722 | ) |
|                                                    |   |                                  |         |                                      |   |  |   |
| Finance                receivables—net            |   | $                                     | 130,053 |                                      | $      | 115,165 |   |

|                                                 |   | **Quarter                Ended June 30, ** |   | **Six                Months Ended June 30, ** |   |
|------------------------------------------------------|--------|-------------------------------------------------|--------|----------------------------------------------------|--------|
|                                                 |   | **2005**                                        |   | **2004**                                           |   | **2005** |   | **2004** |   |
|                                                 |   |                                            |   |                                               |   |   |   |   |   |
| Balance                at the beginning of period    |   | $                                               | 12,758 |                                               | $      | 3,569 |   | $ | 11,722 |   | $ | 5,006 |   |
| Allowance                at purchase                 |   |                                            | 362    |                                               |   | 2,970 |   |   | 3,032 |   |   | 2,970 |   |
| Charge-offs                                          |   |                                            | (4,901 | )                                                  |   | (4,125 | ) |   | (10,599 | ) |   | (8,474 | ) |
| Recoveries                                           |   |                                            | 3,843  |                                               |   | 2,519 |   |   | 7,458 |   |   | 4,488 |   |
| Provision                for estimated credit losses |   |                                            | 1,363  |                                               |   | 3,256 |   |   | 1,812 |   |   | 4,199 |   |
|                                                 |   |                                            |        |                                               |   |  |   |   |  |   |   |  |   |
| Balance                at the end of the period      |   | $                                               | 13,425 |                                               | $      | 8,189 |   | $ | 13,425 |   | $ | 8,189 |   |

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

----

**PART II   OTHER INFORMATION -      CONTINUED**

|   | **Item                5.** | **Other                Information - Continued** |
|--------|----------------------------|--------------------------------------------------|

| **Notes                Series** |   | **Note                Rate** |   | **Initial                Note Amount** |   | **June 30,                2005** |   | **December 31,                2004** |    |
|---------------------------------|--------|------------------------------|--------|----------------------------------------|--------|---------------------------------------|--------|-------------------------------------------|---------|
|                            |   |                         |   |                                   |   |                                  |   |                                      |    |
| Series                2003-A    |   |                         | 3.95   | %                                      | $      | 120,327                               |   | $                                         | 10,530  |   | $ | 28,098 |   |
| Series                2004-A1   |   |                         | 4.15   |                                   |   | 29,485                                |   |                                      | 7,829   |   |   | 14,911 |   |
| Series                2004-A2   |   |                         | 4.55   |                                   |   | 29,298                                |   |                                      | 10,404  |   |   | 18,155 |   |
| Series                2004-B    |   |                         | 5.02   |                                   |   | 25,896                                |   |                                      | 11,306  |   |   | 19,101 |   |
| Series                2004-C    |   |                         | 4.89   |                                   |   | 51,992                                |   |                                      | 32,220  |   |   | 51,992 |   |
| Series                2005-A    |   |                         | 4.49   |                                   |   | 47,742                                |   |                                      | 34,839  |   |   | - |   |
| Series                2005-B    |   |                         | 4.69   |                                   |   | 50,684                                |   |                                      | 44,219  |   |   | - |   |
|                            |   |                         |        |                                   |   |                                       |   |                                      |         |   |   |  |   |
|                            |   |                         |        |                                   |   |                                       |   | $                                         | 151,347 |   | $ | 132,257 |   |

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

*Credit      Loss Assumptions*

----

**PART II   OTHER INFORMATION -      CONTINUED**

|   | **Item                5.** | **Other                Information - Continued** |
|--------|----------------------------|--------------------------------------------------|

|   | January | February | March | April | May   | June  | July  |
|--------|---------|----------|-------|-------|-------|-------|-------|
|   | 6.01%   | 4.74%    | 4.60% | 1.94% | 1.50% | 2.11% | 3.91% |

*Prepayment      Assumptions*

*Discount      Rate Assumptions*

**7.**
**CREDITOR      NOTES PAYABLE**

|                                              |   | **June                30, 2005** |   | **December                31, 2004**          |   |
|---------------------------------------------------|--------|----------------------------------|--------|-----------------------------------------------|--------|
|                                              |   | **Carrying** **Value**      |   | **Contractual                Remaining Debt** |   | **Carrying** **Value** |   | **Contractual                Remaining Debt** |   |
| Restructured                debt:                 |   |                             |   |                                          |   |   |   |   |   |
| Class                2A General Unsecured Claims  |   | $                                | 513    |                                          | $      | 1,374 |   | $ | 656 |   | $ | 1,599 |   |
| Class                2A1 General Unsecured Claims |   |                             | -      |                                          |   | - |   |   | 1 |   |   | 125 |   |
| Restructured                Senior Notes          |   |                             | -      |                                          |   | - |   |   | 3,206 |   |   | 3,207 |   |
| Restructured                Subordinated Notes    |   |                             | 9,506  |                                          |   | 46,383 |   |   | 7,580 |   |   | 46,383 |   |
| Senior                Accrual Notes               |   |                             | 1      |                                          |   | 4,106 |   |   | 1 |   |   | 4,106 |   |
| Subordinated                Accrual Notes         |   |                             | 1      |                                          |   | 3,964 |   |   | 1 |   |   | 3,964 |   |
|                                              |   |                             |        |                                          |   |  |   |   |  |   |   |  |   |
| Total                creditor notes payable       |   | $                                | 10,021 |                                          | $      | 55,827 |   | $ | 11,445 |   | $ | 59,384 |   |

----

**PART II   OTHER INFORMATION -      CONTINUED**

|   | **Item                5.** | **Other                Information - Continued** |
|--------|----------------------------|--------------------------------------------------|

**8.**
**INCOME      TAXES**

**9.**
**RELATED      PARTY ACTIVITY**

**10.**
**SUBSEQUENT      EVENTS**

| **Notes                Series** | **Note                Rate** | **Initial                Note Amount** | **Issue                Date** | **Final                Maturity Date** |
|---------------------------------|------------------------------|----------------------------------------|-------------------------------|----------------------------------------|
|                            |                         |                                   |                          |                                   |
| Series                2005-C    | 5.40                %        | $                54,932,620            | July                8, 2005   | October                8, 2009         |

|   | 1. | The                adoption of an agreement and plan of share exchange with White River. |
|--------|----|------------------------------------------------------------------------------------------|

|   | 2. | The                purchase agreement among White River, Coastal Credit LLC and Coastal                Credit’s members, which provides for the sale by the members of Coastal                Credit of their equity interest in Coastal Credit to White River                at an                aggregate price of approximately $50 million in cash. It is anticipated                that the closing date for the acquisition of Coastal Credit by White                River                will be August 31, 2005. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | The                issuance by White River to private equity funds managed by Castle                Creek of                warrants to acquire 150,000 shares of White River common stock for                $10.00                per share, with a term of three years and 90 days and first exercisable                three years after issuance. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**PART II   OTHER INFORMATION -      CONTINUED**

|   | **Item                5.** | **Other                Information - Continued** |
|--------|----------------------------|--------------------------------------------------|

|   | **Item                6.** | **Exhibits** |
|--------|----------------------------|--------------|

|   | 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 31a-14(a) or 15d-14(a)                of the                Exchange Act |
|   |   |                                                                                                                                              |
|   | 32     | Section                1350 Certifications                                                                                                        |

----

**SIGNATURES**

|                           |   | **White                River Capital, Inc.**(Registrant)                                           |
|--------------------------------|--------|----------------------------------------------------------------------------------------------------|
|                           |   |                                                                                               |
|                           |   |                                                                                               |
| August                26, 2005 | By:    |  /s/              Martin J. Szumski                                                           |
|                           |   | Martin                J. Szumski                                                                   |
|                           |   | Chief                Financial Officer                                                             |
|                           |   | (Signing                on behalf of the registrant as                Principal Financial Officer) |