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

| Large      Accelerated Filer o                                                 | Accelerated      Filer o         |
|-------------------------------------------------------------------------------------|---------------------------------------|
|                                                                                |                                  |
| Non-Accelerated      Filer o(Do      not check if a smaller reporting company) | Smaller      Reporting Company x |

----

|          |                                                                                                                         | PAGE    |
|---------------|------------------------------------------------------------------------------------------------------------------------------|---------|
| PART      I.  | FINANCIAL      INFORMATION                                                                                                   |    |
|          |                                                                                                                         |    |
| Item      1.  | Financial      Statements                                                                                                    |    |
|          |                                                                                                                         |    |
|          | Unaudited      Condensed Consolidated Balance Sheets as of March 31, 2008                                                    | 1       |
|          |                                                                                                                         |    |
|          | Unaudited      Condensed Consolidated Statements of Operations for the quarters ended      March 31, 2008 and 2007           | 2       |
|          |                                                                                                                         |    |
|          | Unaudited      Condensed Consolidated Statements of Cash Flows for the quarters ended      March 31, 2008 and 2007           | 3       |
|          |                                                                                                                         |    |
|          | Unaudited      Condensed Consolidated Statements of Comprehensive Income for the quarters      ended March 31, 2008 and 2007 | 4  |
|          |                                                                                                                         |    |
|          | Notes      to Unaudited Condensed Consolidated Financial Statements                                                          | 5       |
|          |                                                                                                                         |    |
| Item      2.  | Management’s      Discussion and Analysis of Financial Condition and      Results of Operations                        | 14      |
|          |                                                                                                                         |    |
| Item      4T. | Controls      and Procedures                                                                                                 | 25      |
|          |                                                                                                                         |    |
| PART      II. | OTHER      INFORMATION                                                                                                       |    |
|          |                                                                                                                         |    |
| Item      6.  | Exhibits                                                                                                                     | 26      |
|          |                                                                                                                         |    |
| SIGNATURES    | 27                                                                                                                           |

----

| ASSETS                                                                                                                                                                             |   | March      31, 2008 |    |   | December      31, 2007 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|---------|--------|------------------------|--------|
|                                                                                                                                                                               |   |                |    |   |                   |   |
| Cash      and cash equivalents                                                                                                                                                     |   | $                   | 3,538   |   |                   | $      | 3,785 |   |
| Finance      receivables—net                                                                                                                                                 |   |                | 86,353  |   |                   |   | 90,725 |   |
| Goodwill                                                                                                                                                                           |   |                | 34,536  |   |                   |   | 34,536 |   |
| Deferred      tax assets—net                                                                                                                                                 |   |                | 35,241  |   |                   |   | 36,031 |   |
| Other      assets                                                                                                                                                                  |   |                | 1,465   |   |                   |   | 1,488 |   |
|                                                                                                                                                                               |   |                |    |   |                   |   |   |   |
| TOTAL                                                                                                                                                                              |   | $                   | 161,133 |   |                   | $      | 166,565 |   |
|                                                                                                                                                                               |   |                |    |   |                   |   |   |   |
|                                                                                                                                                                               |   |                |    |   |                   |   |   |   |
| LIABILITIES      AND SHAREHOLDERS’ EQUITY                                                                                                                                    |   |                |    |   |                   |   |   |   |
|                                                                                                                                                                               |   |                |    |   |                   |   |   |   |
| LIABILITIES:                                                                                                                                                                       |   |                |    |   |                   |   |   |   |
| Line      of credit                                                                                                                                                                |   |                | 44,000  |   |                   |   | 50,000 |   |
| Accrued      interest                                                                                                                                                              |   |                | 229     |   |                   |   | 351 |   |
| Creditor      notes payable                                                                                                                                                        |   |                | 784     |   |                   |   | 1,324 |   |
| Other      payables and accrued expenses                                                                                                                                           |   |                | 1,600   |   |                   |   | 2,093 |   |
|                                                                                                                                                                               |   |                |    |   |                   |   |   |   |
| Total      liabilities                                                                                                                                                             |   |                | 46,613  |   |                   |   | 53,768 |   |
|                                                                                                                                                                               |   |                |    |   |                   |   |   |   |
| 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; 3,869,333 and      3,843,087 issued and outstanding at March 31, 2008 and December 31, 2007,      respectively |   |                | 180,228 |   |                   |   | 179,976 |   |
| Warrants,      150,000 outstanding at March 31, 2008 and December 31, 2007,      respectively                                                                                      |   |                | 534     |   |                   |   | 534 |   |
| Accumulated      other comprehensive income, net of taxes                                                                                                                          |   |                | 2,183   |   |                   |   | 4,437 |   |
| Accumulated      deficit                                                                                                                                                           |   |                | (68,425 | )      |                   |   | (72,150 | ) |
|                                                                                                                                                                               |   |                |    |   |                   |   |   |   |
| Total      shareholders’ equity                                                                                                                                              |   |                | 114,520 |   |                   |   | 112,797 |   |
|                                                                                                                                                                               |   |                |    |   |                   |   |   |   |
| TOTAL                                                                                                                                                                              |   | $                   | 161,133 |   |                   | $      | 166,565 |   |

----

|                                                                |   | Quarters      Ended March 31, |      |
|---------------------------------------------------------------------|--------|-------------------------------|-----------|
|                                                                |   | 2008                          |      |   | 2007 |   |
| INTEREST:                                                           |   |                          |      |   |   |   |
| Interest      on receivables                                        |   | $                             | 8,070     |   |   | $ | 8,147 |   |
| Accretion      and other interest                                   |   |                          | 3,565     |   |   |   | 10,317 |   |
|                                                                |   |                          |      |   |   |   |   |   |
| Total      interest income                                          |   |                          | 11,635    |   |   |   | 18,464 |   |
|                                                                |   |                          |      |   |   |   |   |   |
| Interest      expense                                               |   |                          | (832      | ) |   |   | (1,990 | ) |
|                                                                |   |                          |      |   |   |   |   |   |
| Net      interest margin                                            |   |                          | 10,803    |   |   |   | 16,474 |   |
|                                                                |   |                          |      |   |   |   |   |   |
| Provision      for estimated credit losses                          |   |                          | (1,197    | ) |   |   | (637 | ) |
|                                                                |   |                          |      |   |   |   |   |   |
| Net      interest margin after provision for estimated creditlosses |   |                          | 9,606     |   |   |   | 15,837 |   |
|                                                                |   |                          |      |   |   |   |   |   |
| OTHER      REVENUES (EXPENSES):                                     |   |                          |      |   |   |   |   |   |
| Salaries      and benefits                                          |   |                          | (2,294    | ) |   |   | (2,142 | ) |
| Third      party servicing expense                                  |   |                          | (114      | ) |   |   | (218 | ) |
| Other      operating expenses                                       |   |                          | (1,411    | ) |   |   | (1,319 | ) |
| Bankruptcy      costs                                               |   |                          | -         |   |   |   | (6 | ) |
| Charge      to Master Trust—net                               |   |                          | -         |   |   |   | (1,061 | ) |
| Change      in fair market valuation of creditor notes payable      |   |                          | (46       | ) |   |   | (238 | ) |
| Gain      from deficiency account sale                              |   |                          | 159       |   |   |   | 41 |   |
| Other      income (expense)                                         |   |                          | (34       | ) |   |   | 141 |   |
|                                                                |   |                          |      |   |   |   |   |   |
| Total      other expenses                                           |   |                          | (3,740    | ) |   |   | (4,802 | ) |
|                                                                |   |                          |      |   |   |   |   |   |
| INCOME      BEFORE INCOME TAXES                                     |   |                          | 5,866     |   |   |   | 11,035 |   |
|                                                                |   |                          |      |   |   |   |   |   |
| INCOME      TAX EXPENSE                                             |   |                          | (2,142    | ) |   |   | (4,024 | ) |
|                                                                |   |                          |      |   |   |   |   |   |
| NET      INCOME                                                     |   | $                             | 3,724     |   |   | $ | 7,011 |   |
|                                                                |   |                          |      |   |   |   |   |   |
| NET      INCOME PER COMMON SHARE (BASIC)                            |   | $                             | 0.96      |   |   | $ | 1.83 |   |
|                                                                |   |                          |      |   |   |   |   |   |
| NET      INCOME PER COMMON SHARE (DILUTED)                          |   | $                             | 0.94      |   |   | $ | 1.78 |   |
|                                                                |   |                          |      |   |   |   |   |   |
| BASIC      WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING     |   |                          | 3,863,507 |   |   |   | 3,835,458 |   |
|                                                                |   |                          |      |   |   |   |   |   |
| DILUTED      WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING   |   |                          | 3,942,503 |   |   |   | 3,937,280 |   |

----

|                                                                                        |   | Quarters      Ended March 31, |    |
|---------------------------------------------------------------------------------------------|--------|-------------------------------|---------|
|                                                                                        |   | 2008                          |    |   | 2007 |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                                  |   |                          |    |   |   |   |
| Net      income                                                                             |   | $                             | 3,724   |   |   | $ | 7,011 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities: |   |                          |    |   |   |   |   |   |
| Accretion      of other comprehensive income                                                |   |                          | (3,550  | ) |   |   | (10,126 | ) |
| Accretion      of securitization discount                                                   |   |                          | (485    | ) |   |   | - |   |
| Provision      for estimated credit losses                                                  |   |                          | 1,197   |   |   |   | 637 |   |
| Amortization      and depreciation                                                          |   |                          | 108     |   |   |   | 110 |   |
| Amortization      of discount and interest accrued on creditor notes payable                |   |                          | (106    | ) |   |   | 110 |   |
| Deferred      income taxes                                                                  |   |                          | 2,085   |   |   |   | 3,930 |   |
| Change      in fair value of creditor notes payable                                         |   |                          | 46      |   |   |   | 238 |   |
| Stock      based compensation expense                                                       |   |                          | 252     |   |   |   | 129 |   |
| Changes      in assets and liabilities:                                                     |   |                          |    |   |   |   |   |   |
| Accrued      interest receivable and other assets                                           |   |                          | (14     | ) |   |   | 19 |   |
| Amounts      due to Master Trust                                                            |   |                          | -       |   |   |   | 488 |   |
| Payment      of creditor notes payable accrued interest                                     |   |                          | -       |   |   |   | (105 | ) |
| Other      payables and accrued expenses                                                    |   |                          | (613    | ) |   |   | (1,231 | ) |
| Net      cash provided by operating activities                                              |   |                          | 2,644   |   |   |   | 1,210 |   |
|                                                                                        |   |                          |    |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                                  |   |                          |    |   |   |   |   |   |
| Principal      collections and recoveries on securitized finance    receivables             |   |                          | -       |   |   |   | 10,664 |   |
| Purchase      of finance receivables                                                        |   |                          | (14,483 | ) |   |   | (16,690 | ) |
| Collections      on finance receivables                                                     |   |                          | 12,631  |   |   |   | 13,102 |   |
| Principal      collections and recoveries on receivables held for    investment             |   |                          | 5,465   |   |   |   | 310 |   |
| Collections      on beneficial interest in Master Trust                                     |   |                          | -       |   |   |   | 6,017 |   |
| Change      in restricted cash                                                              |   |                          | -       |   |   |   | 738 |   |
| Capital      expenditures                                                                   |   |                          | (24     | ) |   |   | (64 | ) |
| Net      cash provided by investing activities                                              |   |                          | 3,589   |   |   |   | 14,077 |   |
|                                                                                        |   |                          |    |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                                  |   |                          |    |   |   |   |   |   |
| Principal      payments on collateralized financings                                        |   |                          | -       |   |   |   | (11,168 | ) |
| Principal      payments on secured note payable                                             |   |                          | -       |   |   |   | (937 | ) |
| Principal      payments on creditor notes payable                                           |   |                          | (480    | ) |   |   | (604 | ) |
| Net      repayment on line of credit                                                        |   |                          | (6,000  | ) |   |   | (4,500 | ) |
| Net      cash used in financing activities                                                  |   |                          | (6,480  | ) |   |   | (17,209 | ) |
|                                                                                        |   |                          |    |   |   |   |   |   |
| DECREASE      IN CASH AND CASH EQUIVALENTS                                                  |   |                          | (247    | ) |   |   | (1,922 | ) |
| CASH      AND CASH EQUIVALENTS—Beginning of period                                    |   |                          | 3,785   |   |   |   | 6,958 |   |
| CASH      AND CASH EQUIVALENTS—End of period                                          |   | $                             | 3,538   |   |   | $ | 5,036 |   |
|                                                                                        |   |                          |    |   |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURES OF CASH FLOW INFORMATION:                                     |   |                          |    |   |   |   |   |   |
| Interest      paid                                                                          |   |                          | 1,058   |   |   | $ | 1,952 |   |
| Non      cash items:                                                                        |   |                          |    |   |   |   |   |   |
| Initial      fair value adjustment for creditor notes payable                               |   | $                             | -       |   |   | $ | 994 |   |

----

|                                                                                                     |   | Quarters      Ended March 31, |   |
|----------------------------------------------------------------------------------------------------------|--------|-------------------------------|--------|
|                                                                                                     |   | 2008                          |   |   | 2007 |   |
|                                                                                                     |   |                          |   |   |   |   |
| NET      INCOME                                                                                          |   | $                             | 3,724  |   |   | $ | 7,011 |   |
|                                                                                                     |   |                          |   |   |   |   |   |   |
| OTHER      COMPREHENSIVE INCOME:                                                                         |   |                          |   |   |   |   |   |   |
| Net      unrealized change on recombined assets and Beneficial Interest in Master      Trust, net of tax |   |                          | (2,254 | ) |   |   | (4,818 | ) |
|                                                                                                     |   |                          |   |   |   |   |   |   |
| COMPREHENSIVE      INCOME                                                                                |   | $                             | 1,470  |   |   | $ | 2,193 |   |

----

|   | 1. | BASIS      OF PRESENTATION |
|--------|----|----------------------------|

----

|   | 2. | GENERAL      DISCUSSION |
|--------|----|-------------------------|

|   | 3. | FINANCE      RECEIVABLES – NET |
|--------|----|--------------------------------------|

|                                                                                                                |   | March      31, |    |   | December      31, |   |
|---------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                                                                                                                |   | 2008           |    |   | 2007              |   |
|                                                                                                                |   |           |    |   |              |   |   |   |
| Finance      receivables, gross                                                                                     |   | $              | 101,618 |   |              | $      | 101,948 |   |
| Unearned      interest                                                                                              |   |           | (4,673  | )      |              |   | (5,164 | ) |
| Finance      receivables, net of unearned finance charge income                                                     |   |           | 96,945  |   |              |   | 96,784 |   |
|                                                                                                                |   |           |    |   |              |   |   |   |
| Accretable      unearned acquisition discounts and fees                                                             |   |           | (10,659 | )      |              |   | (10,740 | ) |
|     Finance      receivables, net of unearned finance charge income and discounts and      fees |   |           | 86,286  |   |              |   | 86,044 |   |
|                                                                                                                |   |           |    |   |              |   |   |   |
| Allowance      for loan losses                                                                                      |   |           | (6,810  | )      |              |   | (6,810 | ) |
|                                                                                                                |   |           |    |   |              |   |   |   |
|     Finance      receivables, net                                                               |   | $              | 79,476  |   |              | $      | 79,234 |   |

----

|                                       |   | Quarters      Ended March 31, |   |
|--------------------------------------------|--------|-------------------------------|--------|
|                                       |   | 2008                          |   |   | 2007 |   |
|                                       |   |                          |   |   |   |   |
| Balance      at beginning of period        |   | $                             | 6,810  |   |   | $ | 5,694 |   |
| Charge-offs,      net of recoveries        |   |                          | (1,609 | ) |   |   | (1,440 | ) |
| Provision      for estimated credit losses |   |                          | 1,609  |   |   |   | 1,440 |   |
|                                       |   |                          |   |   |   |   |   |   |
| Balance      at the end of the period      |   | $                             | 6,810  |   |   | $ | 5,694 |   |

|                                          |   | March      31, |   |   | December      31, |   |
|-----------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
|                                          |   | 2008           |   |   | 2007              |   |
|                                          |   |           |   |   |              |   |
| Principal      balance of finance receivables |   | $              | 7,311  |   |              | $      | 12,572 |   |
| Unearned      discount                        |   |           | (470   | )      |              |   | (955 | ) |
| Accrued      interest receivable              |   |           | 49     |   |              |   | 96 |   |
| Allowance      for credit losses              |   |           | (13    | )      |              |   | (222 | ) |
|                                          |   |           |   |   |              |   |   |   |
| Finance      receivables—net            |   | $              | 6,877  |   |              | $      | 11,491 |   |

|                                      |   | Quarters      Ended March 31, |   |
|-------------------------------------------|--------|-------------------------------|--------|
|                                      |   | 2008                          |   |   | 2007 |   |
|                                      |   |                          |   |   |   |   |
| Balance      at the beginning of period   |   | $                             | 222    |   |   | $ | 1,617 |   |
| Charge-offs                               |   |                          | (331   | ) |   |   | (1,088 | ) |
| Recoveries                                |   |                          | 534    |   |   |   | 1,155 |   |
| Recovery      for estimated credit losses |   |                          | (412   | ) |   |   | (803 | ) |
|                                      |   |                          |   |   |   |   |   |   |
| Balance      at the end of the period     |   | $                             | 13     |   |   | $ | 881 |   |

----

|   | 4. | OTHER      ASSETS |
|--------|----|-------------------|

|                                                     |   | March      31, |   |   | December      31, |   |
|----------------------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
|                                                     |   | 2008           |   |   | 2007              |   |
|                                                     |   |           |   |   |              |   |
| Receivable      from servicer                            |   | $              | 150    |   |              | $      | 203 |   |
| Prepaid      expenses                                    |   |           | 650    |   |              |   | 573 |   |
| Property,      equipment and leasehold improvements, net |   |           | 588    |   |              |   | 622 |   |
| Other                                                    |   |           | 77     |   |              |   | 90 |   |
| Total      other assets                                  |   | $              | 1,465  |   |              | $      | 1,488 |   |

|   | 5. | CREDITOR      NOTES PAYABLE |
|--------|----|-----------------------------|

|                                                                                  |   | Quarters      Ended March 31, |   |
|---------------------------------------------------------------------------------------|--------|-------------------------------|--------|
|                                                                                  |   | 2008                          |   |   | 2007 |   |
|                                                                                  |   |                          |   |   |   |   |
| Beginning      balance                                                                |   | $                             | 1,324  |   |   | $ | 2,478 |   |
| Total      losses included in earnings (recorded as "other revenues      (expenses)") |   |                          | 46     |   |   |   | 238 |   |
| Purchases,      issuances and settlements                                             |   |                          | (586   | ) |   |   | (599 | ) |
| Ending      balance                                                                   |   | $                             | 784    |   |   | $ | 2,117 |   |

----

|   | 6. | INCOME      TAXES |
|--------|----|-------------------|

|   | 7. | STOCK      BASED COMPENSATION |
|--------|----|-------------------------------|

----

| Restricted      Stock Awards               |   | Shares |    |   | Weighted      Average Grant Date Fair Value |   |
|--------------------------------------------|--------|--------|---------|--------|---------------------------------------------|--------|
|                                       |   |   |    |   |                                        |   |
| Nonvested      awards at December 31, 2007 |   |   | 54,300  |   |                                        | $      | 14.91 |   |
| Granted                                    |   |   | -       |   |                                        | $      | - |   |
| Vested                                     |   |   | (22,100 | )      |                                        | $      | 14.25 |   |
| Forfeited                                  |   |   | -       |   |                                        | $      | - |   |
| Nonvested      awards at March 31, 2008    |   |   | 32,200  |   |                                        | $      | 15.24 |   |

|   | 8. | BUSINESS      SEGMENT INFORMATION |
|--------|----|-----------------------------------|

----

| For The Quarter Ended March 31, 2008                                                           |   | UAC    |   |   | Coastal Credit |   |   | Corporate and Other |   |   | Consolidated |   |
|------------------------------------------------------------------------------------------------|--------|--------|--------|--------|----------------|--------|--------|---------------------|--------|--------|--------------|--------|
|                                                                                           |   |   |   |   |           |   |   |                |   |   |         |   |
| Total      interest income                                                                     |   | $      | 4,330  |   |           | $      | 7,301  |                |   | $      | 4            |   |   | $ | 11,635 |   |
|                                                                                           |   |   |   |   |           |   |   |                |   |   |         |   |   |   |   |   |
| Interest      expense                                                                          |   |   | (68    | )      |           |   | (764   | )                   |   |   | -            |   |   |   | (832 | ) |
|                                                                                           |   |   |   |   |           |   |   |                |   |   |         |   |   |   |   |   |
| Net      interest margin                                                                       |   |   | 4,262  |   |           |   | 6,537  |                |   |   | 4            |   |   |   | 10,803 |   |
|                                                                                           |   |   |   |   |           |   |   |                |   |   |         |   |   |   |   |   |
| Recovery      (provision) for estimated credit losses                                          |   |   | 412    |   |           |   | (1,609 | )                   |   |   | -            |   |   |   | (1,197 | ) |
|                                                                                           |   |   |   |   |           |   |   |                |   |   |         |   |   |   |   |   |
| Net      interest margin after recovery (provision) for estimated credit      losses           |   |   | 4,674  |   |           |   | 4,928  |                |   |   | 4            |   |   |   | 9,606 |   |
|                                                                                           |   |   |   |   |           |   |   |                |   |   |         |   |   |   |   |   |
| Total      other revenues (expenses)                                                           |   |   | (5,731 | )      |           |   | (2,910 | )                   |   |   | 4,901        |   |   |   | (3,740 | ) |
|                                                                                           |   |   |   |   |           |   |   |                |   |   |         |   |   |   |   |   |
| Income      (loss) before income taxes                                                         |   | $      | (1,057 | )      |           | $      | 2,018  |                |   | $      | 4,905        |   |   | $ | 5,866 |   |
|                                                                                           |   |   |   |   |           |   |   |                |   |   |         |   |   |   |   |   |
|                                                                                           |   |   |   |   |           |   |   |                |   |   |         |   |   |   |   |   |
| 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 (expenses)                                                           |   |   | (7,481 | )      |           |   | (2,797 | )                   |   |   | 5,476        |   |   |   | (4,802 | ) |
|                                                                                           |   |   |   |   |           |   |   |                |   |   |         |   |   |   |   |   |
| Income      before income taxes                                                                |   | $      | 3,925  |   |           | $      | 1,949  |                |   | $      | 5,161        |   |   | $ | 11,035 |   |

----

|                     |   | March      31, |    |   | December      31, |   |
|--------------------------|--------|----------------|---------|--------|-------------------|--------|
|                     |   | 2008           |    |   | 2007              |   |
|                     |   |           |    |   |              |   |
| Corporate      and other |   | $              | 35,835  |   |              | $      | 36,709 |   |
| Coastal      Credit      |   |           | 117,105 |   |              |   | 116,447 |   |
| UAC                      |   |           | 8,193   |   |              |   | 13,409 |   |
|                     |   |           |    |   |              |   |   |   |
|                     |   | $              | 161,133 |   |              | $      | 166,565 |   |

|   | 9. | EARNINGS      PER SHARE |
|--------|----|-------------------------|

|                                                        |   | Quarters      Ended March 31, |      |
|-------------------------------------------------------------|--------|-------------------------------|-----------|
|                                                        |   | 2008                          |      |   | 2007 |   |
|                                                        |   |                          |      |   |   |   |
| Net      income                                             |   | $                             | 3,724     |   |   | $ | 7,011 |   |
|                                                        |   |                          |      |   |   |   |   |   |
| Weighted      average shares outstanding                    |   |                          | 3,863,507 |   |   |   | 3,835,458 |   |
|                                                        |   |                          |      |   |   |   |   |   |
| Incremental      shares from assumed conversions:           |   |                          |      |   |   |   |   |   |
| Warrants                                                    |   |                          | 68,025    |   |   |   | 82,998 |   |
| Stock      award plans                                      |   |                          | 10,971    |   |   |   | 18,824 |   |
|                                                        |   |                          |      |   |   |   |   |   |
| Weighted      average shares and assumed incremental shares |   |                          | 3,942,503 |   |   |   | 3,937,280 |   |
|                                                        |   |                          |      |   |   |   |   |   |
| Earnings      per share:                                    |   |                          |      |   |   |   |   |   |
|                                                        |   |                          |      |   |   |   |   |   |
| Basic                                                       |   | $                             | 0.96      |   |   | $ | 1.83 |   |
|                                                        |   |                          |      |   |   |   |   |   |
| Diluted                                                     |   | $                             | 0.94      |   |   | $ | 1.78 |   |

----

| 10. | COMMITMENTS      AND CONTINGENCIES |
|-----|------------------------------------|

----

----

|   | § | Accretion      and other income decreased $6.8 million to $3.6 million for the quarter      ended March 31, 2008 as compared to $10.3 million for the same period      during 2007. This decline is the result of the decline of accretion income      related to accumulated other comprehensive  income. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | A      provision for estimated credit losses of $1.2 million was recognized for      the quarter ended March 31, 2008 compared to $0.6 million for the quarter      ended March 31, 2007. These changes are explained further in the      comparison discussion between the quarters ended March 31, 2008 and 2007      below. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | The      above decreases in net income were partially offset by the following      increases to net income: |
|--------|-------------------------------------------------------------------------------------------------------------|

|   | § | Interest      expense for the quarter ended March 31, 2008 decreased $1.2 million as the      result of the reductions of debt and debt rates as compared to the quarter      ended March 31, 2007. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Charge      to master trust–net was $1.1 million for the quarter ended March 31, 2007.      There is no such activity during 2008 with the termination of the Master      Trust Agreement during December2007. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Income      tax expense was $2.1 million for the quarter ended March 31, 2008 compared      to $4.0 million for the quarter ended March 31, 2007. These changes are      explained further in the comparison discussion between the quarters ended      March 31, 2008 and 2007 below. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| For The Quarter Ended March 31, 2008                                                           |   | UAC    |   |   | Coastal Credit |   |   | Corporate and Other |   |   | Consolidated |   |
|------------------------------------------------------------------------------------------------|--------|--------|--------|--------|----------------|--------|--------|---------------------|--------|--------|--------------|--------|
|                                                                                           |   |   |   |   |           |   |   |                |   |   |         |   |
| Interest      on receivables                                                                   |   | $      | 769    |   |           | $      | 7,301  |                |   | $      | -            |   |   | $ | 8,070 |   |
| Accretion      and other interest                                                              |   |   | 3,561  |   |           |   | -      |                |   |   | 4            |   |   |   | 3,565 |   |
|                                                                                           |   |   |   |   |           |   |   |                |   |   |         |   |   |   |   |   |
| Total      interest income                                                                     |   |   | 4,330  |   |           |   | 7,301  |                |   |   | 4            |   |   |   | 11,635 |   |
|                                                                                           |   |   |   |   |           |   |   |                |   |   |         |   |   |   |   |   |
| Interest      expense                                                                          |   |   | (68    | )      |           |   | (764   | )                   |   |   | -            |   |   |   | (832 | ) |
|                                                                                           |   |   |   |   |           |   |   |                |   |   |         |   |   |   |   |   |
| Net      interest margin                                                                       |   |   | 4,262  |   |           |   | 6,537  |                |   |   | 4            |   |   |   | 10,803 |   |
|                                                                                           |   |   |   |   |           |   |   |                |   |   |         |   |   |   |   |   |
| Recovery      (provision) for estimated credit losses                                          |   |   | 412    |   |           |   | (1,609 | )                   |   |   | -            |   |   |   | (1,197 | ) |
|                                                                                           |   |   |   |   |           |   |   |                |   |   |         |   |   |   |   |   |
| Net      interest margin after recovery (provision) for estimated credit      losses      |   |   | 4,674  |   |           |   | 4,928  |                |   |   | 4            |   |   |   | 9,606 |   |
|                                                                                           |   |   |   |   |           |   |   |                |   |   |         |   |   |   |   |   |
| OTHER      REVENUES (EXPENSES):                                                                |   |   |   |   |           |   |   |                |   |   |         |   |   |   |   |   |
| Salaries      and benefits                                                                     |   |   | (78    | )      |           |   | (2,041 | )                   |   |   | (175         | )      |   |   | (2,294 | ) |
| Operating      expenses                                                                        |   |   | (144   | )      |           |   | (801   | )                   |   |   | (466         | )      |   |   | (1,411 | ) |
| Third      party servicing expense                                                             |   |   | (114   | )      |           |   | -      |                |   |   | -            |   |   |   | (114 | ) |
| Change      in fair market valuation of creditor liabilities                                   |   |   | (46    | )      |           |   | -      |                |   |   | -            |   |   |   | (46 | ) |
| Gain      from extinguishment of debt                                                          |   |   | (5,542 | )      |           |   | -      |                |   |   | 5,542        |   |   |   | - |   |
| Gain      from deficiency account sale                                                         |   |   | 159    |   |           |   | -      |                |   |   | -            |   |   |   | 159 |   |
| Other      income (expense)                                                                    |   |   | 34     |   |           |   | (68    | )                   |   |   | -            |   |   |   | (34 | ) |
|                                                                                           |   |   |   |   |           |   |   |                |   |   |         |   |   |   |   |   |
| Total      other revenues (expenses)                                                           |   |   | (5,731 | )      |           |   | (2,910 | )                   |   |   | 4,901        |   |   |   | (3,740 | ) |
|                                                                                           |   |   |   |   |           |   |   |                |   |   |         |   |   |   |   |   |
| Income      (loss) before income taxes                                                         |   |   | (1,057 | )      |           |   | 2,018  |                |   |   | 4,905        |   |   |   | 5,866 |   |
|                                                                                           |   |   |   |   |           |   |   |                |   |   |         |   |   |   |   |   |
| Income      tax expense                                                                        |   |   | -      |   |           |   | -      |                |   |   | (2,142       | )      |   |   | (2,142 | ) |
|                                                                                           |   |   |   |   |           |   |   |                |   |   |         |   |   |   |   |   |
| Net      income (loss)                                                                         |   | $      | (1,057 | )      |           | $      | 2,018  |                |   | $      | 2,763        |   |   | $ | 3,724 |   |
|                                                                                           |   |   |   |   |           |   |   |                |   |   |         |   |   |   |   |   |
|                                                                                           |   |   |   |   |           |   |   |                |   |   |         |   |   |   |   |   |
| 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 (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 | ) |
| (Charge)      credit 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 account sale                                                         |   |   | 41     |   |           |   | -      |                |   |   | -            |   |   |   | 41 |   |
| Other      income (expense)                                                                    |   |   | 223    |   |           |   | (82    | )                   |   |   | -            |   |   |   | 141 |   |
|                                                                                           |   |   |   |   |           |   |   |                |   |   |         |   |   |   |   |   |
| Total      other revenues (expenses)                                                           |   |   | (7,481 | )      |           |   | (2,797 | )                   |   |   | 5,476        |   |   |   | (4,802 | ) |
|                                                                                           |   |   |   |   |           |   |   |                |   |   |         |   |   |   |   |   |
| 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 |   |

----

|                                                                       |   | Quarters      Ended March 31, |   |
|----------------------------------------------------------------------------|--------|-------------------------------|--------|
|                                                                       |   | 2008                          |   |   | 2007 |   |
|                                                                       |   |                          |   |   |   |   |
| UAC      discount accretion from accumulated other comprehensive    income |   | $                             | 3,550  |   |   | $ | 10,127 |   |
| Interest      on cash balances                                             |   |                          | 15     |   |   |   | 190 |   |
|                                                                       |   |                          |   |   |   |   |   |   |
| Accretion      and other interest income                                   |   | $                             | 3,565  |   |   | $ | 10,317 |   |

----

----

----

----

|                                     |   | March      31, 2008 |    |   | December      31, 2007 |   |
|------------------------------------------|--------|---------------------|---------|--------|------------------------|--------|
|                                     |   | $                   |    |   |                   | %      |   |   | $ |   |   |   | % |   |
|                                     |   |                |    |   |                   |   |   |   |   |   |   |   |   |   |
| Finance      receivables - gross balance |   | $                   | 101,618 |   |                   |   |   |   |   | $ | 101,948 |   |   |   |   |   |
|                                     |   |                |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Delinquencies:                           |   |                |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| 30-59      days                          |   | $                   | 998     |   |                   |   | 1.0 | % |   | $ | 1,564 |   |   |   | 1.5 | % |
| 60-89      days                          |   |                | 875     |   |                   |   | 0.9 | % |   |   | 1,002 |   |   |   | 1.0 | % |
| 90+      days                            |   |                | 1,950   |   |                   |   | 1.9 | % |   |   | 1,626 |   |   |   | 1.6 | % |
| Total      delinquencies                 |   | $                   | 3,823   |   |                   |   | 3.8 | % |   | $ | 4,192 |   |   |   | 4.1 | % |

----

|                                                                                                      |   | Quarters      Ended March 31, |   |
|-----------------------------------------------------------------------------------------------------------|--------|-------------------------------|--------|
|                                                                                                      |   | 2008                          |   |   | 2007 |   |
|                                                                                                      |   |                          |   |   |   |   |
| Balance      at beginning of period                                                                       |   | $                             | 6,810  |   |   | $ | 5,694 |   |
| Charge-offs,      net of recoveries                                                                       |   |                          | (1,609 | ) |   |   | (1,440 | ) |
| Provision      for estimated credit losses                                                                |   |                          | 1,609  |   |   |   | 1,440 |   |
|                                                                                                      |   |                          |   |   |   |   |   |   |
| Balance      at the end of the period                                                                     |   | $                             | 6,810  |   |   | $ | 5,694 |   |
|                                                                                                      |   |                          |   |   |   |   |   |   |
| Net      charge-offs                                                                                      |   | $                             | 1,609  |   |   | $ | 1,440 |   |
| Finance      receivables, net of unearned finance charges                                                 |   | $                             | 96,945 |   |   | $ | 98,357 |   |
|                                                                                                      |   |                          |   |   |   |   |   |   |
| Allowance      for loan losses as a percent of finance receivables, net of unearned      finance charges  |   |                          | 7.02   | % |   |   | 5.79 | % |
|                                                                                                      |   |                          |   |   |   |   |   |   |
| Annualized      net charge-offs as a percent of finance receivables, net of unearned      finance charges |   |                          | 6.64   | % |   |   | 5.86 | % |
|                                                                                                      |   |                          |   |   |   |   |   |   |
| Allowance      for loan losses as a percent of annualized net charge-offs                                 |   |                          | 105.81 | % |   |   | 98.85 | % |

|                                       |   | March      31, 2008 |   |   | December      31, 2007 |    |
|--------------------------------------------|--------|---------------------|--------|--------|------------------------|---------|
|                                       |   | $                   |   |   |                   | %  |   |   | $ |   |   |   | %  |   |
|                                       |   |                |   |   |                   |    |   |   |   |   |   |   |   |   |
| Finance      receivables principal balance |   | $                   | 7,311  |   |                   |    |   |   |   | $ | 12,572 |   |   |   |   |   |
|                                       |   |                |   |   |                   |    |   |   |   |   |   |   |   |   |   |   |
| Delinquencies:                             |   |                |   |   |                   |    |   |   |   |   |   |   |   |   |   |   |
| 30-59      days                            |   | $                   | 531    |   |                   |    | 7.3 | % |   | $ | 1,179 |   |   |   | 9.4 | % |
| 60-89      days                            |   |                | 194    |   |                   |    | 2.7 | % |   |   | 467 |   |   |   | 3.7 | % |
| 90+      days                              |   |                | 101    |   |                   |    | 1.4 | % |   |   | 149 |   |   |   | 1.2 | % |
| Total      delinquencies                   |   | $                   | 826    |   |                   |    | 11.3 | % |   | $ | 1,795 |   |   |   | 14.3 | % |

----

|                                                               |   | Quarters      Ended March 31, |   |
|--------------------------------------------------------------------|--------|-------------------------------|--------|
|                                                               |   | 2008                          |   |   | 2007 |   |
|                                                               |   |                          |   |   |   |   |
| Balance      at the beginning of period                            |   | $                             | 222    |   |   | $ | 1,617 |   |
| Charge-offs                                                        |   |                          | (331   | ) |   |   | (1,088 | ) |
| Recoveries                                                         |   |                          | 534    |   |   |   | 1,155 |   |
| Recovery      for estimated credit losses                          |   |                          | (412   | ) |   |   | (803 | ) |
|                                                               |   |                          |   |   |   |   |   |   |
| Balance      at the end of the period                              |   | $                             | 13     |   |   | $ | 881 |   |
|                                                               |   |                          |   |   |   |   |   |   |
| Net      recoveries                                                |   | $                             | (203   | ) |   | $ | (67 | ) |
| Finance      receivables                                           |   | $                             | 7,311  |   |   | $ | 18,078 |   |
|                                                               |   |                          |   |   |   |   |   |   |
| Allowance      for loan losses as a percent of finance receivables |   |                          | 0.18   | % |   |   | 4.87 | % |
|                                                               |   |                          |   |   |   |   |   |   |
| Annulaized      net recoveries as a percent of finance receivables |   |                          | (11.11 | )% |   |   | (1.48 | )% |

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

|   | · | general      economic, market, or businessconditions; |
|--------|--------|-------------------------------------------------------|

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

|   | · | changes      in White River’s competitiveposition; |
|--------|--------|----------------------------------------------------------|

|   | · | 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. |
|--------|--------|------------------------------------------------------------------------------------|

----

----

| 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                                                                               |

----

|                  | White      River Capital, Inc. |
|-----------------------|--------------------------------|
|                  | (Registrant)                   |
|                  |                           |   |
| May      7,      2008 | By:                            | /s/      Martin      J. Szumski |
|                  |                           | Martin      J. Szumski |
|                  |                           | Chief      Financial Officer |
|                  |                           | (Signing      on behalf of the registrant and as Principal Financial      Officer) |