**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D. C.20549**

**FORM      10-Q**

**For      the quarterly period ended September 30, 2006**

**000-51493**

**White      River Capital, Inc.**

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

**1445      Brookville Way, Suite I**

**Indianapolis,      Indiana 46239**

**(317)      806-2166**

----

|                    | -                INDEX -                                                                                                                                                            |   |
|-------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                    |                                                                                                                                                                                | PAGE   |
|                    |                                                                                                                                                                                |   |
| PART                I.  | FINANCIAL                INFORMATION                                                                                                                                                |   |
|                    |                                                                                                                                                                                |   |
| Item                1.  | Financial                Statements                                                                                                                                                 |   |
|                    |                                                                                                                                                                                |   |
|                    | Unaudited                Condensed Consolidated Balance Sheets as of September 30, 2006 and                December 31, 2005                                                        | 1      |
|                    |                                                                                                                                                                                |   |
|                    | Unaudited                Condensed Consolidated Statements of Operations for the quarters                and nine                months ended September 30, 2006 and 2005           | 2      |
|                    |                                                                                                                                                                                |   |
|                    | Unaudited                Condensed Consolidated Statements of Cash Flows for the nine months                ended                September 30, 2006 and 2005                        | 3      |
|                    |                                                                                                                                                                                |   |
|                    | Unaudited                Condensed Consolidated Statements of Comprehensive Income for the                quarters                and nine months ended September 30, 2006 and 2005 | 4      |
|                    |                                                                                                                                                                                |   |
|                    | Notes                to Unaudited Condensed Consolidated Financial Statements                                                                                                       | 5      |
|                    |                                                                                                                                                                                |   |
| Item                2.  | Management’s                Discussion and Analysis of Financial Condition and Results of                Operations                                                           | 18     |
|                    |                                                                                                                                                                                |   |
| Item                4.  | Controls                and Procedures                                                                                                                                              | 44     |
|                    |                                                                                                                                                                                |   |
| PART                II. | OTHER                INFORMATION                                                                                                                                                    |   |
|                    |                                                                                                                                                                                |   |
| Item                1.  | Legal                Proceedings                                                                                                                                                    | 45     |
|                    |                                                                                                                                                                                |   |
| Item                6.  | Exhibits                and Reports on Form 8-K                                                                                                                                     | 45     |
|                    |                                                                                                                                                                                |   |
| SIGNATURES              |                                                                                                                                                                                | 46     |

----

**PART I.  FINANCIAL      INFORMATION**

**PART      I**

**ITEM      1. FINANCIAL STATEMENTS.**

| **WHITE                RIVER CAPITAL, INC. AND SUBSIDIARIES**                                                                                                                                                                                      |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| **CONDENSED                CONSOLIDATED BALANCE SHEETS**                                                                                                                                                                                           |   |   |   |   |   |
| **(Unaudited)**                                                                                                                                                                                                                                    |   |   |   |   |   |
| **(Dollars                in thousands)**                                                                                                                                                                                                          |   |   |   |   |   |
|                                                                                                                                                                                                                                               |   |   |   |   |   |
| **ASSETS**                                                                                                                                                                                                                                         |   | **September                30, 2006** |   | **December                31, 2005** |   |
|                                                                                                                                                                                                                                               |   |   |   |   |   |
| Cash                and cash equivalents                                                                                                                                                                                                           |   | $ | 5,633 |   | $ | 6,878 |   |
| Restricted                cash                                                                                                                                                                                                                     |   |   | 15,556 |   |   | 22,739 |   |
| Securitized                finance receivables—net                                                                                                                                                                                           |   |   | 39,151 |   |   | 109,506 |   |
| Finance                receivables—net                                                                                                                                                                                                       |   |   | 79,260 |   |   | 70,784 |   |
| Beneficial                interest in Master Trust                                                                                                                                                                                                 |   |   | 22,640 |   |   | 13,968 |   |
| Goodwill                                                                                                                                                                                                                                           |   |   | 35,097 |   |   | 35,097 |   |
| Deferred                tax assets—net                                                                                                                                                                                                       |   |   | 6,047 |   |   | 4,707 |   |
| Other                assets                                                                                                                                                                                                                        |   |   | 8,851 |   |   | 3,315 |   |
|                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |
| TOTAL                                                                                                                                                                                                                                              |   | $ | 212,235 |   | $ | 266,994 |   |
|                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |
| **LIABILITIES                AND SHAREHOLDERS’ EQUITY**                                                                                                                                                                                      |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |
| LIABILITIES:                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |
| Collateralized                financing                                                                                                                                                                                                            |   | $ | 46,213 |   | $ | 122,293 |   |
| Line                of credit                                                                                                                                                                                                                      |   |   | 54,500 |   |   | 51,500 |   |
| Secured                note payable                                                                                                                                                                                                                |   |   | 14,062 |   |   | 15,000 |   |
| Subordinated                debentures                                                                                                                                                                                                             |   |   | 7,700 |   |   | 7,700 |   |
| Note                payable - Coastal Credit purchase holdback                                                                                                                                                                                     |   |   | - |   |   | 3,840 |   |
| Accrued                interest                                                                                                                                                                                                                    |   |   | 1,369 |   |   | 2,131 |   |
| Amounts                due to Master Trust                                                                                                                                                                                                         |   |   | 7,894 |   |   | 7,417 |   |
| Creditor                notes payable                                                                                                                                                                                                              |   |   | 1,825 |   |   | 1,461 |   |
| Other                payables and accrued expenses                                                                                                                                                                                                 |   |   | 5,225 |   |   | 2,291 |   |
|                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |
| Total                liabilities                                                                                                                                                                                                                   |   |   | 138,788 |   |   | 213,633 |   |
|                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |
| SHAREHOLDERS’                EQUITY:                                                                                                                                                                                                         |   |   |   |   |   |   |   |
| Preferred                Stock, without par value, authorized 3,000,000 shares; none issued                and                outstanding                                                                                                          |   |   | - |   |   | - |   |
| Common                Stock, without par value, authorized 20,000,000 shares; 3,813,155                and                3,810,155 issued and outstanding at September 30, 2006 and December                31,                2005, respectively |   |   | 179,426 |   |   | 179,157 |   |
| Warrants                                                                                                                                                                                                                                           |   |   | 534 |   |   | 534 |   |
| Accumulated                other comprehensive income                                                                                                                                                                                              |   |   | 20,221 |   |   | 13,305 |   |
| Accumulated                deficit                                                                                                                                                                                                                 |   |   | (126,734 | ) |   | (139,635 | ) |
|                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |
| Total                shareholders’ equity                                                                                                                                                                                                    |   |   | 73,447 |   |   | 53,361 |   |
|                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |
| TOTAL                                                                                                                                                                                                                                              |   | $ | 212,235 |   | $ | 266,994 |   |

----

**PART        I.  FINANCIAL INFORMATION**

| **WHITE                RIVER CAPITAL, INC. AND SUBSIDIARIES**                                            |   |                                             |      |
|----------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|-----------|
| **CONDENSED                CONSOLIDATED STATEMENTS OF OPERATIONS**                                       |   |                                             |      |   |   |
| **(Unaudited)**                                                                                          |   |                                             |      |   |   |   |   |
| **(Dollars                in thousands, except per share amounts)**                                      |   |                                             |      |   |   |   |   |
|                                                                                                     |   |                                             |      |   |   |   |   |   |   |
|                                                                                                     |   | **Quarter-to-Date                September 30,** |      | **Nine                Months Ended September 30,** |   |
|                                                                                                     |   | **2006**                                         |      | **2005** |   | **2006** |   | **2005** |   |
| INTEREST:                                                                                                |   |                                             |      |   |   |   |   |   |   |
| Interest                on receivables                                                                   |   | $                                                | 9,199     |   | $ | 7,888 |   | $ | 28,808 |   | $ | 17,775 |   |
| Accretion                and other interest                                                              |   |                                             | 8,129     |   |   | 2,333 |   |   | 11,536 |   |   | 8,052 |   |
|                                                                                                     |   |                                             |      |   |   |   |   |   |   |   |   |   |   |
| Total                interest income                                                                     |   |                                             | 17,328    |   |   | 10,221 |   |   | 40,344 |   |   | 25,827 |   |
|                                                                                                     |   |                                             |      |   |   |   |   |   |   |   |   |   |   |
| Interest                expense                                                                          |   |                                             | (2,872    | ) |   | (3,189 | ) |   | (9,294 | ) |   | (11,532 | ) |
|                                                                                                     |   |                                             |      |   |   |   |   |   |   |   |   |   |   |
| Net                interest margin                                                                       |   |                                             | 14,456    |   |   | 7,032 |   |   | 31,050 |   |   | 14,295 |   |
|                                                                                                     |   |                                             |      |   |   |   |   |   |   |   |   |   |   |
| Recovery                (provision) for estimated credit losses                                          |   |                                             | (20       | ) |   | (1,031 | ) |   | 365 |   |   | (2,844 | ) |
|                                                                                                     |   |                                             |      |   |   |   |   |   |   |   |   |   |   |
| Net                interest margin after recovery (provision) for estimated credit                losses |   |                                             | 14,436    |   |   | 6,001 |   |   | 31,415 |   |   | 11,451 |   |
|                                                                                                     |   |                                             |      |   |   |   |   |   |   |   |   |   |   |
| OTHER                REVENUES:                                                                           |   |                                             |      |   |   |   |   |   |   |   |   |   |   |
| Charge                to Master Trust—net                                                          |   |                                             | (5,587    | ) |   | (2,126 | ) |   | (13,587 | ) |   | (5,179 | ) |
| Gain                (loss) from extinguishment of debt                                                   |   |                                             | (1,341    | ) |   | 266 |   |   | (1,543 | ) |   | 11,327 |   |
| Other                income                                                                              |   |                                             | 4,304     |   |   | 188 |   |   | 7,973 |   |   | 614 |   |
|                                                                                                     |   |                                             |      |   |   |   |   |   |   |   |   |   |   |
| Total                other revenues, net                                                                 |   |                                             | (2,624    | ) |   | (1,672 | ) |   | (7,157 | ) |   | 6,762 |   |
|                                                                                                     |   |                                             |      |   |   |   |   |   |   |   |   |   |   |
| OTHER                EXPENSES:                                                                           |   |                                             |      |   |   |   |   |   |   |   |   |   |   |
| Salaries                and benefits                                                                     |   |                                             | 2,255     |   |   | 551 |   |   | 6,379 |   |   | 722 |   |
| Third                party servicing expense                                                             |   |                                             | 373       |   |   | 1,015 |   |   | 1,552 |   |   | 2,642 |   |
| Other                operating expenses                                                                  |   |                                             | 1,279     |   |   | 718 |   |   | 4,496 |   |   | 1,324 |   |
| Bankruptcy                costs                                                                          |   |                                             | 18        |   |   | 74 |   |   | 150 |   |   | 244 |   |
|                                                                                                     |   |                                             |      |   |   |   |   |   |   |   |   |   |   |
| Total                other expenses                                                                      |   |                                             | 3,925     |   |   | 2,358 |   |   | 12,577 |   |   | 4,932 |   |
|                                                                                                     |   |                                             |      |   |   |   |   |   |   |   |   |   |   |
| INCOME                BEFORE INCOME TAXES                                                                |   |                                             | 7,887     |   |   | 1,971 |   |   | 11,681 |   |   | 13,281 |   |
|                                                                                                     |   |                                             |      |   |   |   |   |   |   |   |   |   |   |
| INCOME                TAX BENEFIT                                                                        |   |                                             | 248       |   |   | - |   |   | 1,219 |   |   | - |   |
|                                                                                                     |   |                                             |      |   |   |   |   |   |   |   |   |   |   |
| NET                INCOME                                                                                |   | $                                                | 8,135     |   | $ | 1,971 |   | $ | 12,900 |   | $ | 13,281 |   |
|                                                                                                     |   |                                             |      |   |   |   |   |   |   |   |   |   |   |
| NET                INCOME PER COMMON SHARE (BASIC)                                                       |   | $                                                | 2.13      |   | $ | 1.32 |   | $ | 3.38 |   | $ | 18.77 |   |
|                                                                                                     |   |                                             |      |   |   |   |   |   |   |   |   |   |   |
| NET                INCOME PER COMMON SHARE (DILUTED)                                                     |   | $                                                | 2.09      |   | $ | 1.32 |   | $ | 3.33 |   | $ | 18.74 |   |
|                                                                                                     |   |                                             |      |   |   |   |   |   |   |   |   |   |   |
| BASIC                WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING                                |   |                                             | 3,813,155 |   |   | 1,489,503 |   |   | 3,813,045 |   |   | 707,591 |   |
|                                                                                                     |   |                                             |      |   |   |   |   |   |   |   |   |   |   |
| DILUTED                WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING                              |   |                                             | 3,900,930 |   |   | 1,492,669 |   |   | 3,876,177 |   |   | 708,658 |   |

----

**PART        I.  FINANCIAL INFORMATION**

| **WHITE                RIVER CAPITAL, INC. AND SUBSIDIARIES**                                                                                                                                    |   |                                               |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|---------|
| **CONDENSED                CONSOLIDATED STATEMENTS OF CASH FLOWS**                                                                                                                               |   |                                               |    |
| **(Unaudited)**                                                                                                                                                                                  |   |                                               |    |   |   |
| **(Dollars                in thousands)**                                                                                                                                                        |   |                                               |    |   |   |
|                                                                                                                                                                                             |   | **Nine                Months Ended September 30,** |    |
|                                                                                                                                                                                             |   | **2006**                                           |    | **2005** |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES:                                                                                                                                             |   |                                               |    |   |   |
| Net                income                                                                                                                                                                        |   | $                                                  | 12,900  |   | $ | 13,281 |   |
| Adjustments                to reconcile net income to net cash provided by (used in) operating                activities:                                                                        |
| Accretion                of beneficial interest in Master Trust                                                                                                                                  |   |                                               | (10,842 | ) |   | (7,469 | ) |
| Provision                (recovery) for estimated credit losses                                                                                                                                  |   |                                               | (365    | ) |   | 2,844 |   |
| Amortization                and depreciation                                                                                                                                                     |   |                                               | 355     |   |   | 90 |   |
| Amortization                of discount and interest accrued on creditor notes payable                                                                                                           |   |                                               | 974     |   |   | 4,877 |   |
| Loss                (gain) from extinguishment of debt                                                                                                                                           |   |                                               | 1,543   |   |   | (11,327 | ) |
| Deferred                income taxes                                                                                                                                                             |   |                                               | (1,340  | ) |   | - |   |
| Stock                based compensation expense                                                                                                                                                  |   |                                               | 269     |   |   | - |   |
| Changes                in assets and liabilities:                                                                                                                                                |   |                                               |    |   |   |   |   |
| Accrued                interest receivable and other assets                                                                                                                                      |   |                                               | 1,595   |   |   | 2,509 |   |
| Amounts                due to Master Trust                                                                                                                                                       |   |                                               | 477     |   |   | (1,225 | ) |
| Payment                of creditor notes payable accrued interest                                                                                                                                |   |                                               | (775    | ) |   | (6,390 | ) |
| Other                payables and accrued expenses                                                                                                                                               |   |                                               | 1,182   |   |   | 430 |   |
| Net                cash provided by (used in) operating activities                                                                                                                               |   |                                               | 5,973   |   |   | (2,380 | ) |
| CASH                FLOWS FROM INVESTING ACTIVITIES:                                                                                                                                             |   |                                               |    |   |   |   |   |
| Acquisition                of Coastal Credit, LLC, net of cash acquired                                                                                                                          |   |                                               | -       |   |   | (41,804 | ) |
| Payment                of Coastal Credit purchase holdback                                                                                                                                       |   |                                               | (3,840  | ) |   | - |   |
| Purchase                of securitized finance receivables                                                                                                                                       |   |                                               | -       |   |   | (149,333 | ) |
| Principal                collections and recoveries on securitized finance                receivables                                                                                            |   |                                               | 70,350  |   |   | 122,797 |   |
| Purchase                of finance receivables                                                                                                                                                   |   |                                               | (49,497 | ) |   | (4,421 | ) |
| Collections                on finance receivables                                                                                                                                                |   |                                               | 37,724  |   |   | 3,741 |   |
| Principal                collections and recoveries on receivables held for                investment                                                                                            |   |                                               | 2,652   |   |   | - |   |
| Collections                on beneficial interest in Master Trust                                                                                                                                |   |                                               | 2,784   |   |   | 8,767 |   |
| Change                in restricted cash                                                                                                                                                         |   |                                               | 7,183   |   |   | (4,529 | ) |
| Capital                expenditures                                                                                                                                                              |   |                                               | (168    | ) |   | (3 | ) |
| Net                cash provided by (used in) investing activities                                                                                                                               |   |                                               | 67,188  |   |   | (64,785 | ) |
| CASH                FLOWS FROM FINANCING ACTIVITIES:                                                                                                                                             |   |                                               |    |   |   |   |   |
| Proceeds                from issuance of common stock, net of costs                                                                                                                              |   |                                               | -       |   |   | 33,524 |   |
| Proceeds                from collateralized financings                                                                                                                                           |   |                                               | -       |   |   | 153,359 |   |
| Principal                payments on collateralized financings                                                                                                                                   |   |                                               | (76,080 | ) |   | (124,997 | ) |
| Proceeds                from secured note payable                                                                                                                                                |   |                                               | -       |   |   | 15,000 |   |
| Principal                payments on secured note payable                                                                                                                                        |   |                                               | (937    | ) |   | - |   |
| Principal                payments on creditor notes payable                                                                                                                                      |   |                                               | (389    | ) |   | (3,472 | ) |
| Net                increase in line of credit                                                                                                                                                    |   |                                               | 3,000   |   |   | - |   |
| Payment                of debt issuance costs related to secured note payable                                                                                                                    |   |                                               | -       |   |   | (210 | ) |
| Proceeds                from notes payable to Castle Creek                                                                                                                                       |   |                                               | -       |   |   | 2,375 |   |
| Principal                payments on notes payable to Castle Creek                                                                                                                               |   |                                               | -       |   |   | (2,375 | ) |
| Principal                payments on subordinated debentures                                                                                                                                     |   |                                               | -       |   |   | (900 | ) |
| Net                cash provided by (used in) financing activities                                                                                                                               |   |                                               | (74,406 | ) |   | 72,304 |   |
| INCREASE                (DECREASE) IN CASH AND CASH EQUIVALENTS                                                                                                                                  |   |                                               | (1,245  | ) |   | 5,139 |   |
| CASH                AND CASH EQUIVALENTS—Beginning of period                                                                                                                               |   |                                               | 6,878   |   |   | 3,745 |   |
| CASH                AND CASH EQUIVALENTS—End of period                                                                                                                                     |   | $                                                  | 5,633   |   | $ | 8,884 |   |
| SUPPLEMENTAL                DISCLOSURES OF CASH FLOW INFORMATION:                                                                                                                                |   |                                               |    |
| Income                tax refunds                                                                                                                                                                |   | $                                                  | 2       |   | $ | 72 |   |
| Interest                paid                                                                                                                                                                     |   | $                                                  | 7,737   |   | $ | 9,783 |   |
| Non                cash items:                                                                                                                                                                   |   |                                               |    |   |   |   |   |
| Transfer                of securitized finance receivables—net to other assets after the                collateralized financing for securitization 2003-A was paid in                full |   | $                                                  | 2,771   |   | $ | - |   |
| Receivable                recognition in other assets of beneficial interest in Master Trust                distribution                                                                         |   | $                                                  | 6,302   |   | $ | - |   |

----

**PART I.  FINANCIAL      INFORMATION**

| **WHITE                RIVER CAPITAL, INC. AND SUBSIDIARIES**                |   |                                            |   |
|------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|
| **CONDENSED                CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME** |   |                                            |   |
| **(Unaudited)**                                                              |   |                                            |   |   |   |   |   |   |   |
| **(Dollars                in thousands)**                                    |   |                                            |   |   |   |   |   |   |   |
|                                                                         |   |                                            |   |   |   |   |   |   |   |
|                                                                         |   | **Quarters                Ended September 30,** |   | **Nine                Months Ended September 30,** |   |
|                                                                         |   | **2006**                                        |   | **2005** |   | **2006** |   | **2005** |   |
|                                                                         |   |                                            |   |   |   |   |   |   |   |
| NET                INCOME                                                    |   | $                                               | 8,135  |   | $ | 1,971 |   | $ | 12,900 |   | $ | 13,281 |   |
| OTHER                COMPREHENSIVE INCOME:                                   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                gain on beneficial interest in Master Trust        |   |                                            | 8,096  |   |   | 2,817 |   |   | 17,758 |   |   | 12,920 |   |
| Reclassification                adjustment for gain included in net income   |   |                                            | (7,900 | ) |   | (2,074 | ) |   | (10,842 | ) |   | (7,469 | ) |
| Net                other comprehensive income                                |   |                                            | 196    |   |   | 743 |   |   | 6,916 |   |   | 5,451 |   |
| COMPREHENSIVE                INCOME                                          |   | $                                               | 8,331  |   | $ | 2,714 |   | $ | 19,816 |   | $ | 18,732 |   |

----

**PART I.  FINANCIAL      INFORMATION**

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

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**QUARTERS      AND NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005**

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

**New      Accounting Pronouncements**

*Accounting      for Uncertainty in Income Taxes*

*Fair      Value Measurements*
*,*

----

**PART      I.  FINANCIAL      INFORMATION**

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

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

----

**PART I.  FINANCIAL INFORMATION**
|                                                             |   | **September                30, 2006** |   | **December                31, 2005** |   |
|------------------------------------------------------------------|--------|---------------------------------------|--------|--------------------------------------|--------|
|                                                             |   |                                  |   |                                 |   |
| Securitized                finance receivables—net         |   | $                                     | 39.2   |                                 | $      | 109.5 |   |
| Restricted                cash                                   |   |                                  | 14.9   |                                 |   | 22.7 |   |
| Receivable                from servicer included in other assets |   |                                  | 0.4    |                                 |   | 1.1 |   |
| Collateralized                financings                         |   |                                  | (46.2  | )                                    |   | (122.3 | ) |
| Series                2003-A excess collateral (1)               |   |                                  | -      |                                 |   | (2.7 | ) |
| Accrued                interest payable                          |   |                                  | (0.2   | )                                    |   | (0.5 | ) |
| Other                payables and accrued expenses               |   |                                  | (0.2   | )                                    |   | (0.4 | ) |
|                                                             |   |                                  |   |                                 |   |   |   |
| Amounts                due to Master Trust                       |   | $                                     | 7.9    |                                 | $      | 7.4 |   |

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

|                                                                |   | **September                30, 2006** |   | **December                31, 2005** |   |
|---------------------------------------------------------------------|--------|---------------------------------------|--------|--------------------------------------|--------|
|                                                                |   |                                  |   |                                 |   |
| Principal                balance of securitized finance receivables |   | $                                     | 41,392 |                                 | $      | 115,031 |   |
| Accrued                interest receivable                          |   |                                  | 329    |                                 |   | 978 |   |
| Allowance                for credit losses                          |   |                                  | (2,570 | )                                    |   | (6,503 | ) |
|                                                                |   |                                  |   |                                 |   |   |   |
| Securitized                finance receivables—net            |   | $                                     | 39,151 |                                 | $      | 109,506 |   |

----

**PART I.  FINANCIAL      INFORMATION**

|                                                            |   | **Quarters                Ended September 30,** |   | **Nine                Months Ended September 30,** |   |
|-----------------------------------------------------------------|--------|-------------------------------------------------|--------|----------------------------------------------------|--------|
|                                                            |   | **2006**                                        |   | **2005**                                           |   | **2006** |   | **2005** |   |
|                                                            |   |                                            |   |                                               |   |   |   |   |   |
| Balance                at the beginning of period               |   | $                                               | 4,089  |                                               | $      | 13,425 |   | $ | 6,503 |   | $ | 11,722 |   |
| Allowance                at purchase                            |   |                                            | -      |                                               |   | 2,131 |   |   | - |   |   | 5,163 |   |
| Charge-offs                                                     |   |                                            | (1,659 | )                                                  |   | (5,812 | ) |   | (7,975 | ) |   | (16,410 | ) |
| Recoveries                                                      |   |                                            | 1,314  |                                               |   | 3,580 |   |   | 7,705 |   |   | 11,037 |   |
| Provision                (recovery) for estimated credit losses |   |                                            | (1,174 | )                                                  |   | 656 |   |   | (3,663 | ) |   | 2,468 |   |
|                                                            |   |                                            |   |                                               |   |   |   |   |   |   |   |   |   |
| Balance                at the end of the period                 |   | $                                               | 2,570  |                                               | $      | 13,980 |   | $ | 2,570 |   | $ | 13,980 |   |

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

| **Notes                Series** |   | **Note****Rate** |   | **Initial                Note****Amount** |   | **September                30,****2006** |    | **December                31,****2005** |   |
|---------------------------------|--------|------------------|--------|-------------------------------------------|--------|------------------------------------------|---------|-----------------------------------------|--------|
|                            |   |             |   |                                      |   |                                     |    |                                    |   |   |
| Series                2003-A    |   |             | 3.95   |                %                     |   | $                                        | 120,327 |                                    | $      | - |   | $ | 2,072 |   |
| Series                2004-A1   |   |             | 4.15   |                                      |   |                                     | 29,485  |                                    |   | 755 |   |   | 3,743 |   |
| Series                2004-A2   |   |             | 4.55   |                                      |   |                                     | 29,298  |                                    |   | 1,332 |   |   | 5,317 |   |
| Series                2004-B    |   |             | 5.02   |                                      |   |                                     | 25,896  |                                    |   | 1,724 |   |   | 5,972 |   |
| Series                2004-C    |   |             | 4.89   |                                      |   |                                     | 51,992  |                                    |   | 6,095 |   |   | 18,636 |   |
| Series                2005-A    |   |             | 4.49   |                                      |   |                                     | 47,742  |                                    |   | 7,884 |   |   | 20,730 |   |
| Series                2005-B    |   |             | 4.69   |                                      |   |                                     | 50,684  |                                    |   | 11,331 |   |   | 27,445 |   |
| Series                2005-C    |   |             | 5.40   |                                      |   |                                     | 54,933  |                                    |   | 17,092 |   |   | 38,378 |   |
|                            |   |             |   |                                      |   | $                                        | 410,357 |                                    | $      | 46,213 |   | $ | 122,293 |   |

----

**PART I.  FINANCIAL INFORMATION**
**6.**
**BENEFICIAL      INTEREST IN MASTER TRUST**

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

| o   | *Liquidation                recovery*                -                consists of net auction proceeds, deficiency recoveries by the servicer,                and scheduled payments from defaulted accounts. On a monthly basis                for                each pool, liquidation recovery cash dollars as a percentage of gross                default dollars has been calculated based on a rolling twelve month                average. This twelve month average for each pool is used to project                monthly liquidation recovery by multiplying this value by the monthly                estimated gross default dollars                projected. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | *Bankruptcy                recovery*                -                consists of cash recovered from accounts charged off and in bankruptcy                status. Bankruptcy cash flows are somewhat independent of default                rates                due to bankruptcy court involvement and the latitude allowed debtors                during the bankruptcy process. UAC has observed a reasonably predictable                cash flow stream from bankruptcy payments in each securitized pool.                This                cash flow stream will, however, eventually expire as the bankruptcy                cases                are dismissed from the various courts with either a successful or                non-successful outcome. A previous twelve month average of bankruptcy                cash                flows is calculated for each pool. This value is then reduced on                a                straight line basis over either a 30 or 42 month period. The bankruptcy                recovery has been adjusted to reflect the percentage of accounts                remaining                after a significant portion of the Chapter 13 bankruptcy receivables                were                sold during June 2006. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**PART I.  FINANCIAL INFORMATION**
| **· **  | *Prepayment                Assumptions*—UAC                estimates prepayments by evaluating the historical prepayment performance                of each pool of receivables. UAC used annual prepayment rates ranging                from                28.4% to 42.3% at September 30, 2006 as compared to 27.8% to 42.3%                at                December 31, 2005. |
|------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·  ** | *Discount                Rate Assumptions*—UAC                determines the estimated fair value of its beneficial interest in                Master                Trust by discounting the expected cash flows released from the Master                Trust account (the cash out method) using a discount rate that UAC                believes is commensurate with the risks involved. UAC used a discount                rate                of 15% to value the beneficial interest in Master Trust at September                30,                2006 and December 31, 2005 to reflect current market conditions and                UAC’s financial position.This discount rate has remained constant                notwithstanding recent increases in market interest rates due to                management’s assessment that there has been reduction in risk related to                the distributions from the Master Trust                account. |
|------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|                                                                                                                           |   | **September                30, 2006** |    | **December                31, 2005** |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|---------|--------------------------------------|--------|
|                                                                                                                           |   |                                  |    |                                 |   |
| Finance                receivables, gross                                                                                      |   | $                                     | 106,555 |                                 | $      | 97,820 |   |
| Unearned                interest                                                                                               |   |                                  | (9,568  | )                                    |   | (9,868 | ) |
| Finance                receivables, net of unearned finance charge income                                                      |   |                                  | 96,987  |                                 |   | 87,952 |   |
|                                                                                                                           |   |                                  |    |                                 |   |   |   |
| Accretable                unearned acquisition discounts and fees                                                              |   |                                  | (11,968 | )                                    |   | (11,137 | ) |
| Finance                receivables, net of unearned finance charge income and discounts                and                fees |   |                                  | 85,019  |                                 |   | 76,815 |   |
|                                                                                                                           |   |                                  |    |                                 |   |   |   |
| Allowance                for loan losses                                                                                       |   |                                  | (5,759  | )                                    |   | (6,031 | ) |
|                                                                                                                           |   |                                  |    |                                 |   |   |   |
| Finance                receivables, net                                                                                        |   | $                                     | 79,260  |                                 | $      | 70,784 |   |

----

**PART I.  FINANCIAL    INFORMATION**
|                                                                                                                          |   | **Quarter                EndedSeptember 30, 2006** |   | **Nine                Months EndedSeptember 30, 2006** |   | **One                Month EndedSeptember 30, 2005** |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|--------|--------------------------------------------------------|--------|------------------------------------------------------|--------|
|                                                                                                                          |   |                                               |   |                                                   |   |                                                 |   |
| Balance                at beginning of period                                                                                 |   | $                                                  | 5,832  |                                                   | $      | 6,031                                                |   | $ | 6,100 |   |
| Charge-offs,                net of recoveries                                                                                 |   |                                               | (1,267 | )                                                      |   | (3,570                                               | )      |   | (375 | ) |
| Provision                for estimated credit losses                                                                          |   |                                               | 1,194  |                                                   |   | 3,298                                                |   |   | 375 |   |
|                                                                                                                          |   |                                               |   |                                                   |   |                                                 |   |   |   |   |
| Balance                at the end of the period                                                                               |   | $                                                  | 5,759  |                                                   | $      | 5,759                                                |   | $ | 6,100 |   |
|                                                                                                                          |   |                                               |   |                                                   |   |                                                 |   |   |   |   |
| Net                charge offs                                                                                                |   | $                                                  | 1,267  |                                                   | $      | 3,570                                                |   | $ | 375 |   |
| Finance                receivables, net of unearned finance charges                                                           |   | $                                                  | 96,987 |                                                   | $      | 96,987                                               |   | $ | 86,292 |   |
|                                                                                                                          |   |                                               |   |                                                   |   |                                                 |   |   |   |   |
| Allowance                for loan losses as a percent of finance receivables, net of unearned                finance charges  |   |                                               | 5.94   | %                                                      |   | 5.94                                                 | %      |   | 7.07 | % |
|                                                                                                                          |   |                                               |   |                                                   |   |                                                 |   |   |   |   |
| Annualized                net charge offs as a percent of finance receivables, net of unearned                finance charges |   |                                               | 5.23   | %                                                      |   | 4.91                                                 | %      |   | 5.21 | % |
|                                                                                                                          |   |                                               |   |                                                   |   |                                                 |   |   |   |   |
| Allowance                for loan losses as a percent of annualized net charge offs                                           |   |                                               | 113.63 | %                                                      |   | 120.99                                               | %      |   | 135.56 | % |

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

|                                                               |   | **September                30,****2006** |   | **December                31, 2005** |   |
|--------------------------------------------------------------------|--------|------------------------------------------|--------|--------------------------------------|--------|
|                                                               |   |                                     |   |                                 |   |
| Receivable                from servicer                            |   | $                                        | 441    |                                 | $      | 1,124 |   |
| Prepaid                expenses                                    |   |                                     | 507    |                                 |   | 712 |   |
| Property,                equipment and leasehold improvements, net |   |                                     | 601    |                                 |   | 601 |   |
| Receivables                held for investment, net                |   |                                     | 778    |                                 |   | 269 |   |
| Receivable                from Master Trust account                |   |                                     | 6,304  |                                 |   | - |   |
| Other                                                              |   |                                     | 220    |                                 |   | 609 |   |
| Total                other assets                                  |   | $                                        | 8,851  |                                 | $      | 3,315 |   |

----

**PART I.  FINANCIAL INFORMATION**
**9.**
**GOOODWILL**

**10.**
**CREDITOR      NOTES PAYABLE**

|                                              |   | **September                30, 2006** |   |                                                                                                             |   | **December                31, 2005**          |   |
|---------------------------------------------------|--------|---------------------------------------|--------|------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|--------|
|                                              |   | **Carrying****Value**                 |   | **Contractual****Remaining****Debt                Not****Owned                by****White                River** |   | **Total****Contractual****Remaining****Debt** |   |   |   | **Carrying****Value** |   | **Contractual****Remaining****Debt                Not****Owned                by****White                River** |   | **Total****Contractual****Remaining****Debt** |   |
|                                              |   |                                  |   |
|                                              |   |                                  |   |
|                                              |   |                                  |   |
|                                              |   |                                  |   |
| Restructured                debt:                 |   |                                  |   |                                                                                                             |   |                                          |   |   |   |   |   |   |   |   |   |
| Class                2A general unsecured claims  |   | $                                     | 4      |                                                                                                             | $      | 16                                            |   | $ | 1,188 |   |   |   |   | $ | 164 |   | $ | 405 |   | $ | 1,330 |   |
| Class                2A1 general unsecured claims |   |                                  | -      |                                                                                                             |   | -                                             |   |   | - |   |   |   |   |   | - |   |   | - |   |   | - |   |
| Restructured                senior notes          |   |                                  | -      |                                                                                                             |   | -                                             |   |   | - |   |   |   |   |   | - |   |   | - |   |   | - |   |
| Restructured                subordinated notes    |   |                                  | 1,820  |                                                                                                             |   | 5,041                                         |   |   | 46,383 |   |   |   |   |   | 1,296 |   |   | 5,041 |   |   | 46,383 |   |
| Senior                accrual notes               |   |                                  | -      |                                                                                                             |   | -                                             |   |   | 4,106 |   |   |   |   |   | - |   |   | - |   |   | 4,106 |   |
| Subordinated                accrual notes         |   |                                  | 1      |                                                                                                             |   | 431                                           |   |   | 3,964 |   |   |   |   |   | 1 |   |   | 431 |   |   | 3,964 |   |
|                                              |   |                                  |   |                                                                                                             |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                creditor notes payable       |   | $                                     | 1,825  |                                                                                                             | $      | 5,488                                         |   | $ | 55,641 |   |   |   |   | $ | 1,461 |   | $ | 5,877 |   | $ | 55,783 |   |

**11.**
**INCOME      TAXES**

----

**PART I.  FINANCIAL INFORMATION**
**12.**
**BUSINESS      SEGMENT INFORMATION**

----

**PART I.  FINANCIAL    INFORMATION**
| **For                The Quarter Ended September 30, 2006**                                                                       |   | **UAC**       |    | **Coastal                Credit**       |   | **Corporate                and Other**       |   | **Consolidated**       |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|-----------------------------------------|--------|----------------------------------------------|--------|------------------------|--------|
|                                                                                                                              |   |          |    |                                    |   |                                         |   |                   |   |
| Total                interest income                                                                                              |   | $             | 9,822   |                                    | $      | 7,498                                        |   | $                      | 8      |   | $ | 17,328 |   |
| Interest                expense                                                                                                   |   |          | (1,047  | )                                       |   | (1,429                                       | )      |                   | (396   | ) |   | (2,872 | ) |
| Net                interest margin                                                                                                |   |          | 8,775   |                                    |   | 6,069                                        |   |                   | (388   | ) |   | 14,456 |   |
| Recovery                (provision) for estimated credit losses                                                                   |   |          | 1,174   |                                    |   | (1,194                                       | )      |                   | -      |   |   | (20 | ) |
| Net                interest margin (deficit) after recovery (provision) for estimated                credit                losses |   |          | 9,949   |                                    |   | 4,875                                        |   |                   | (388   | ) |   | 14,436 |   |
| Total                other revenues (charges), net                                                                                |   |          | (5,634  | )                                       |   | (93                                          | )      |                   | 3,103  |   |   | (2,624 | ) |
| Total                other expenses                                                                                               |   |          | 618     |                                    |   | 2,796                                        |   |                   | 511    |   |   | 3,925 |   |
| Income                before income taxes                                                                                         |   | $             | 3,697   |                                    | $      | 1,986                                        |   | $                      | 2,204  |   | $ | 7,887 |   |
|                                                                                                                              |   |          |    |                                    |   |                                         |   |                   |   |   |   |   |   |
| **For                The Quarter Ended September 30, 2005***                                                                      |   |  **UAC** |    |  **Coastal                Credit** |   |  **Corporate                and Other** |   |  **Consolidated** |   |
| Total                interest income                                                                                              |   | $             | 8,078   |                                    | $      | 2,141                                        |   | $                      | 2      |   | $ | 10,221 |   |
| Interest                expense                                                                                                   |   |          | (2,587  | )                                       |   | (378                                         | )      |                   | (224   | ) |   | (3,189 | ) |
| Net                interest margin                                                                                                |   |          | 5,491   |                                    |   | 1,763                                        |   |                   | (222   | ) |   | 7,032 |   |
| Provision                for estimated credit losses                                                                              |   |          | (656    | )                                       |   | (375                                         | )      |                   | -      |   |   | (1,031 | ) |
| Net                interest margin (deficit) after provision for estimated credit                losses                           |   |          | 4,835   |                                    |   | 1,388                                        |   |                   | (222   | ) |   | 6,001 |   |
| Total                other revenues (charges), net                                                                                |   |          | (3,790  | )                                       |   | 9                                            |   |                   | 2,109  |   |   | (1,672 | ) |
| Total                other expenses                                                                                               |   |          | 1,380   |                                    |   | 692                                          |   |                   | 286    |   |   | 2,358 |   |
| Income                (loss) before income taxes                                                                                  |   | $             | (335    | )                                       | $      | 705                                          |   | $                      | 1,601  |   | $ | 1,971 |   |
|                                                                                                                              |   |          |    |                                    |   |                                         |   |                   |   |   |   |   |   |
| **For                The Nine Months Ended September 30, 2006**                                                                   |   |  **UAC** |    |  **Coastal                Credit** |   | **Corporate                and Other**       |   |  **Consolidated** |   |
| Total                interest income                                                                                              |   | $             | 18,759  |                                    | $      | 21,553                                       |   | $                      | 32     |   | $ | 40,344 |   |
| Interest                expense                                                                                                   |   |          | (3,963  | )                                       |   | (3,994                                       | )      |                   | (1,337 | ) |   | (9,294 | ) |
| Net                interest margin                                                                                                |   |          | 14,796  |                                    |   | 17,559                                       |   |                   | (1,305 | ) |   | 31,050 |   |
| Recovery                (provision) for estimated credit losses                                                                   |   |          | 3,663   |                                    |   | (3,298                                       | )      |                   | -      |   |   | 365 |   |
| Net                interest margin (deficit) after recovery (provision) for estimated                credit                losses |   |          | 18,459  |                                    |   | 14,261                                       |   |                   | (1,305 | ) |   | 31,415 |   |
| Total                other revenues (charges), net                                                                                |   |          | (11,487 | )                                       |   | (338                                         | )      |                   | 4,668  |   |   | (7,157 | ) |
| Total                other expenses                                                                                               |   |          | 2,702   |                                    |   | 8,180                                        |   |                   | 1,695  |   |   | 12,577 |   |
| Income                before income taxes                                                                                         |   | $             | 4,270   |                                    | $      | 5,743                                        |   | $                      | 1,668  |   | $ | 11,681 |   |
|                                                                                                                              |   |          |    |                                    |   |                                         |   |                   |   |   |   |   |   |
| **For                The Nine Months Ended September 30, 2005***                                                                  |   |  **UAC** |    |  **Coastal                Credit** |   |  **Corporate                and Other** |   |  **Consolidated** |   |
| Total                interest income                                                                                              |   | $             | 23,684  |                                    | $      | 2,141                                        |   | $                      | 2      |   | $ | 25,827 |   |
| Interest                expense                                                                                                   |   |          | (10,923 | )                                       |   | (378                                         | )      |                   | (231   | ) |   | (11,532 | ) |
| Net                interest margin                                                                                                |   |          | 12,761  |                                    |   | 1,763                                        |   |                   | (229   | ) |   | 14,295 |   |
| Provision                for estimated credit losses                                                                              |   |          | (2,469  | )                                       |   | (375                                         | )      |                   | -      |   |   | (2,844 | ) |
| Net                interest margin (deficit) after provision for estimated credit                losses                           |   |          | 10,292  |                                    |   | 1,388                                        |   |                   | (229   | ) |   | 11,451 |   |
| Total                other revenues (charges), net                                                                                |   |          | 6,757   |                                    |   | 9                                            |   |                   | (4     | ) |   | 6,762 |   |
| Total                other expenses                                                                                               |   |          | 3,878   |                                    |   | 692                                          |   |                   | 362    |   |   | 4,932 |   |
| Income                (loss) before income taxes                                                                                  |   | $             | 13,171  |                                    | $      | 705                                          |   | $                      | (595   | ) | $ | 13,281 |   |

----

**PART I.  FINANCIAL      INFORMATION**

|                               |   | **September                30,****2006** |    | **December                31,****2005** |   |    |   |
|------------------------------------|--------|------------------------------------------|---------|-----------------------------------------|--------|---------|--------|
|                               |   |                                     |    |
|                               |   |                                     |    |                                    |   |    |   |
| Corporate                and other |   | $                                        | 8,014   |                                    | $      | 6,918   |   |   |   |   |
| Coastal                Credit      |   |                                     | 116,743 |                                    |   | 108,165 |   |   |   |   |
| UAC                                |   |                                     | 87,478  |                                    |   | 151,911 |   |   |   |   |
|                               |   | $                                        | 212,235 |                                    | $      | 266,994 |   |   |   |   |

**13.**
**STOCK      BASED COMPENSATION**

----

**PART I.  FINANCIAL INFORMATION**
**14.**
**EARNINGS      PER SHARE**

|                                                                  |   | **Quarters                Ended September 30,** |      | **Nine                Months Ended September 30,** |   |
|-----------------------------------------------------------------------|--------|-------------------------------------------------|-----------|----------------------------------------------------|--------|
|                                                                  |   | **2006**                                        |      | **2005**                                           |   | **2006** |   | **2005** |   |
|                                                                  |   |                                            |      |                                               |   |   |   |   |   |
| Net                income in thousands                                |   | $                                               | 8,135     |                                               | $      | 1,971 |   | $ | 12,900 |   | $ | 13,281 |   |
| Weighted                average shares outstanding                    |   |                                            | 3,813,155 |                                               |   | 1,489,503 |   |   | 3,813,045 |   |   | 707,591 |   |
| Incremental                shares from assumed conversions:           |   |                                            |      |                                               |   |   |   |   |   |   |   |   |   |
| Warrants                                                              |   |                                            | 63,122    |                                               |   | 3,166 |   |   | 55,560 |   |   | 1,067 |   |
| Stock                incentive plans                                  |   |                                            | 24,653    |                                               |   | - |   |   | 7,572 |   |   | - |   |
| Weighted                average shares and assumed incremental shares |   |                                            | 3,900,930 |                                               |   | 1,492,669 |   |   | 3,876,177 |   |   | 708,658 |   |
| Basic                                                                 |   | $                                               | 2.13      |                                               | $      | 1.32 |   | $ | 3.38 |   | $ | 18.77 |   |
| Diluted                                                               |   | $                                               | 2.09      |                                               | $      | 1.32 |   | $ | 3.33 |   | $ | 18.74 |   |

----

**PART I.  FINANCIAL INFORMATION**
**15.**
**COMMITMENTS      AND CONTINGENCIES**

----

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

**General**

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

***Net      Assets of Collateralized Financings***

----

**PART I.  FINANCIAL INFORMATION**
***Valuation      of Beneficial Interest in Master Trust***

***Income      Recognitio***
**n      - Finance Receivables**

***Finance      Receivables***

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

----

**PART I.  FINANCIAL INFORMATION**
***Charge      off Policy***
**      - *Finance Receivables***

***Income      Taxes***

----

**PART I.  FINANCIAL INFORMATION**
**New      Accounting Pronouncements**

*Accounting      for Uncertainty in Income Taxes*

*Fair      Value Measurements*
*,*

**Results      of Operations**

***Executive      Summary***

*The      Quarter*
*      Ended September 30, 2006 Compared to the Quarter Ended September 30,      2005*

----

**PART I.  FINANCIAL INFORMATION**
*The      Nine Months*
*      Ended September 30, 2006 Compared to the Nine Months Ended September 30,      2005*

**Discussion      of Results**

|                                                                                                     |   | **Quarters                Ended****September                30,** |   | **Nine                Months Ended****September                30,** |   |
|----------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|----------------------------------------------------------------------|--------|
|                                                                                                     |   | **2006**                                                          |   | **2005**                                                             |   | **2006** |   | **2005** |   |
| INTEREST:                                                                                                |   |                                                              |   |                                                                 |   |   |   |   |   |
| Interest                on receivables                                                                   |   | $                                                                 | 9,199  |                                                                 | $      | 7,888 |   | $ | 28,808 |   | $ | 17,775 |   |
| Accretion                and other interest                                                              |   |                                                              | 8,129  |                                                                 |   | 2,333 |   |   | 11,536 |   |   | 8,052 |   |
|                                                                                                     |   |                                                              |   |                                                                 |   |   |   |   |   |   |   |   |   |
| Total                interest income                                                                     |   |                                                              | 17,328 |                                                                 |   | 10,221 |   |   | 40,344 |   |   | 25,827 |   |
|                                                                                                     |   |                                                              |   |                                                                 |   |   |   |   |   |   |   |   |   |
| Interest                expense                                                                          |   |                                                              | (2,872 | )                                                                    |   | (3,189 | ) |   | (9,294 | ) |   | (11,532 | ) |
|                                                                                                     |   |                                                              |   |                                                                 |   |   |   |   |   |   |   |   |   |
| Net                interest margin                                                                       |   |                                                              | 14,456 |                                                                 |   | 7,032 |   |   | 31,050 |   |   | 14,295 |   |
|                                                                                                     |   |                                                              |   |                                                                 |   |   |   |   |   |   |   |   |   |
| Recovery                (provision) for estimated credit losses                                          |   |                                                              | (20    | )                                                                    |   | (1,031 | ) |   | 365 |   |   | (2,844 | ) |
|                                                                                                     |   |                                                              |   |                                                                 |   |   |   |   |   |   |   |   |   |
| Net                interest margin after recovery (provision) for estimated credit                losses |   |                                                              | 14,436 |                                                                 |   | 6,001 |   |   | 31,415 |   |   | 11,451 |   |
|                                                                                                     |   |                                                              |   |                                                                 |   |   |   |   |   |   |   |   |   |
| OTHER                REVENUES:                                                                           |   |                                                              |   |                                                                 |   |   |   |   |   |   |   |   |   |
| Charge                to Master Trust—net                                                          |   |                                                              | (5,587 | )                                                                    |   | (2,126 | ) |   | (13,587 | ) |   | (5,179 | ) |
| Gain                (loss) from extinguishment of debt                                                   |   |                                                              | (1,341 | )                                                                    |   | 266 |   |   | (1,543 | ) |   | 11,327 |   |
| Other                income                                                                              |   |                                                              | 4,304  |                                                                 |   | 188 |   |   | 7,973 |   |   | 614 |   |
|                                                                                                     |   |                                                              |   |                                                                 |   |   |   |   |   |   |   |   |   |
| Total                other revenues, net                                                                 |   |                                                              | (2,624 | )                                                                    |   | (1,672 | ) |   | (7,157 | ) |   | 6,762 |   |
|                                                                                                     |   |                                                              |   |                                                                 |   |   |   |   |   |   |   |   |   |
| OTHER                EXPENSES:                                                                           |   |                                                              |   |                                                                 |   |   |   |   |   |   |   |   |   |
| Salaries                and benefits                                                                     |   |                                                              | 2,255  |                                                                 |   | 551 |   |   | 6,379 |   |   | 722 |   |
| Third                party servicing expense                                                             |   |                                                              | 373    |                                                                 |   | 1,015 |   |   | 1,552 |   |   | 2,642 |   |
| Operating                expenses                                                                        |   |                                                              | 1,279  |                                                                 |   | 718 |   |   | 4,496 |   |   | 1,324 |   |
| Bankruptcy                costs                                                                          |   |                                                              | 18     |                                                                 |   | 74 |   |   | 150 |   |   | 244 |   |
|                                                                                                     |   |                                                              |   |                                                                 |   |   |   |   |   |   |   |   |   |
| Total                other expenses                                                                      |   |                                                              | 3,925  |                                                                 |   | 2,358 |   |   | 12,577 |   |   | 4,932 |   |
|                                                                                                     |   |                                                              |   |                                                                 |   |   |   |   |   |   |   |   |   |
| INCOME                BEFORE INCOME TAXES                                                                |   |                                                              | 7,887  |                                                                 |   | 1,971 |   |   | 11,681 |   |   | 13,281 |   |
|                                                                                                     |   |                                                              |   |                                                                 |   |   |   |   |   |   |   |   |   |
| INCOME                TAXES BENEFIT                                                                      |   |                                                              | 248    |                                                                 |   | - |   |   | 1,219 |   |   | - |   |
|                                                                                                     |   |                                                              |   |                                                                 |   |   |   |   |   |   |   |   |   |
| NET                INCOME                                                                                |   | $                                                                 | 8,135  |                                                                 | $      | 1,971 |   | $ | 12,900 |   | $ | 13,281 |   |

----

**PART I.  FINANCIAL INFORMATION**
***The      Quarter Ended September 30, 2006 Compared to the Quarter Ended September 30,      2005 - Consolidated***

----

**PART I.  FINANCIAL INFORMATION**

----

**PART I.  FINANCIAL INFORMATION**
***The      Nine Months Ended September 30, 2006 Compared to the Nine Months Ended September      30, 2005 - Consolidated***

----

**PART      I.  FINANCIAL      INFORMATION**

----

**PART      I.  FINANCIAL      INFORMATION**

----

**PART      I.  FINANCIAL      INFORMATION**

**Discussion      of Results of Operations of UAC**

|                                                                                                                                              |   | **Quarters                Ended September 30,** |   | **Nine                Months Ended September 30,** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|----------------------------------------------------|--------|
|                                                                                                                                              |   | **2006**                                        |   | **2005**                                           |   | **2006** |   | **2005** |   |
| INTEREST:                                                                                                                                         |   |                                            |   |                                               |   |   |   |   |   |
| Interest                on receivables                                                                                                            |   | $                                               | 1,701  |                                               | $      | 5,747 |   | $ | 7,255 |   | $ | 15,634 |   |
| Accretion                and other interest                                                                                                       |   |                                            | 8,121  |                                               |   | 2,331 |   |   | 11,504 |   |   | 8,050 |   |
|                                                                                                                                              |   |                                            |   |                                               |   |   |   |   |   |   |   |   |   |
| Total                interest income                                                                                                              |   |                                            | 9,822  |                                               |   | 8,078 |   |   | 18,759 |   |   | 23,684 |   |
|                                                                                                                                              |   |                                            |   |                                               |   |   |   |   |   |   |   |   |   |
| Interest                expense                                                                                                                   |   |                                            | (1,047 | )                                                  |   | (2,587 | ) |   | (3,963 | ) |   | (10,923 | ) |
|                                                                                                                                              |   |                                            |   |                                               |   |   |   |   |   |   |   |   |   |
| Net                interest margin                                                                                                                |   |                                            | 8,775  |                                               |   | 5,491 |   |   | 14,796 |   |   | 12,761 |   |
|                                                                                                                                              |   |                                            |   |                                               |   |   |   |   |   |   |   |   |   |
| Recovery                (provision) for estimated credit losses                                                                                   |   |                                            | 1,174  |                                               |   | (656 | ) |   | 3,663 |   |   | (2,469 | ) |
|                                                                                                                                              |   |                                            |   |                                               |   |   |   |   |   |   |   |   |   |
| Net                interest margin after recovery (provision) for estimated credit                losses                                          |   |                                            | 9,949  |                                               |   | 4,835 |   |   | 18,459 |   |   | 10,292 |   |
|                                                                                                                                              |   |                                            |   |                                               |   |   |   |   |   |   |   |   |   |
| OTHER                REVENUES:                                                                                                                    |   |                                            |   |                                               |   |   |   |   |   |   |   |   |   |
| Charge                to Master Trust—net                                                                                                   |   |                                            | (5,587 | )                                                  |   | (2,126 | ) |   | (13,587 | ) |   | (5,179 | ) |
| Gain                (loss) from extinguishment of debt and intercompany transfers related                to                creditor notes payable |   |                                            | (4,444 | )                                                  |   | (1,843 | ) |   | (6,211 | ) |   | 11,327 |   |
| Other                income                                                                                                                       |   |                                            | 4,397  |                                               |   | 179 |   |   | 8,311 |   |   | 592 |   |
|                                                                                                                                              |   |                                            |   |                                               |   |   |   |   |   |   |   |   |   |
| Total                other revenues, net                                                                                                          |   |                                            | (5,634 | )                                                  |   | (3,790 | ) |   | (11,487 | ) |   | 6,740 |   |
|                                                                                                                                              |   |                                            |   |                                               |   |   |   |   |   |   |   |   |   |
| OTHER                EXPENSES:                                                                                                                    |   |                                            |   |                                               |   |   |   |   |   |   |   |   |   |
| Salaries                and benefits                                                                                                              |   |                                            | 56     |                                               |   | 86 |   |   | 228 |   |   | 257 |   |
| Third                party servicing expense                                                                                                      |   |                                            | 373    |                                               |   | 1,015 |   |   | 1,552 |   |   | 2,642 |   |
| Operating                expenses                                                                                                                 |   |                                            | 171    |                                               |   | 205 |   |   | 772 |   |   | 735 |   |
| Bankruptcy                costs                                                                                                                   |   |                                            | 18     |                                               |   | 74 |   |   | 150 |   |   | 244 |   |
|                                                                                                                                              |   |                                            |   |                                               |   |   |   |   |   |   |   |   |   |
| Total                other expenses                                                                                                               |   |                                            | 618    |                                               |   | 1,380 |   |   | 2,702 |   |   | 3,878 |   |
|                                                                                                                                              |   |                                            |   |                                               |   |   |   |   |   |   |   |   |   |
| INCOME                BEFORE INCOME TAXES                                                                                                         |   |                                            | 3,697  |                                               |   | (335 | ) |   | 4,270 |   |   | 13,154 |   |
|                                                                                                                                              |   |                                            |   |                                               |   |   |   |   |   |   |   |   |   |
| INCOME                TAXES BENEFIT                                                                                                               |   |                                            | -      |                                               |   | - |   |   | - |   |   | - |   |
|                                                                                                                                              |   |                                            |   |                                               |   |   |   |   |   |   |   |   |   |
| NET                INCOME                                                                                                                         |   | $                                               | 3,697  |                                               | $      | (335 | ) | $ | 4,270 |   | $ | 13,154 |   |

***The      Quarter Ended September 30, 2006 Compared to the Quarter Ended September 30,      2005 - UAC***

----

**PART I.  FINANCIAL INFORMATION**
|                                                                          |   | **Quarters                Ended September 30,** |   |
|-------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|
|                                                                          |   | **2006**                                        |   | **2005** |   |
|                                                                          |   |                                            |   |   |   |
| UAC                discount accretion for beneficial interest in Master Trust |   | $                                               | 7,900  |   | $ | 2,074 |   |
| UAC                interest on restricted cash balances                       |   |                                            | 221    |   |   | 257 |   |
|                                                                          |   |                                            |   |   |   |   |   |
| UAC                accretion and other interest income                        |   | $                                               | 8,121  |   | $ | 2,331 |   |

----

**PART I.  FINANCIAL INFORMATION**
***The      Nine Months Ended September 30, 2006 Compared to the Nine Months Ended September      30, 2005 - UAC***

|                                                                          |   | **Nine                Months Ended September 30,** |   |
|-------------------------------------------------------------------------------|--------|----------------------------------------------------|--------|
|                                                                          |   | **2006**                                           |   | **2005** |   |
|                                                                          |   |                                               |   |   |   |
| UAC                discount accretion for beneficial interest in Master Trust |   | $                                                  | 10,842 |   | $ | 7,469 |   |
| UAC                interest on restricted cash balances                       |   |                                               | 662    |   |   | 581 |   |
| UAC                accretion and other interest income                        |   | $                                                  | 11,504 |   | $ | 8,050 |   |

----

**PART I.  FINANCIAL INFORMATION**

----

**PART I.  FINANCIAL INFORMATION**
**Discussion      of Results of Operations of Coastal Credit**

|                                                                                          |   | **Quarter                Ended****September                30, 2006** |   | **Nine                Months Ended****September                30, 2006** |   | **One                Month Ended****September                30, 2005** |   |
|-----------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|---------------------------------------------------------------------------|--------|-------------------------------------------------------------------------|--------|
| INTEREST:                                                                                     |   |                                                                  |   |                                                                      |   |                                                                    |   |
| Interest                on receivables                                                        |   | $                                                                     | 7,498  |                                                                      | $      | 21,553                                                                  |   | $ | 2,141 |   |
|                                                                                          |   |                                                                  |   |                                                                      |   |                                                                    |   |   |   |   |
| Interest                expense                                                               |   |                                                                  | (1,429 | )                                                                         |   | (3,994                                                                  | )      |   | (378 | ) |
|                                                                                          |   |                                                                  |   |                                                                      |   |                                                                    |   |   |   |   |
| Net                interest margin                                                            |   |                                                                  | 6,069  |                                                                      |   | 17,559                                                                  |   |   | 1,763 |   |
|                                                                                          |   |                                                                  |   |                                                                      |   |                                                                    |   |   |   |   |
| Provision                for estimated credit losses                                          |   |                                                                  | (1,194 | )                                                                         |   | (3,298                                                                  | )      |   | (375 | ) |
|                                                                                          |   |                                                                  |   |                                                                      |   |                                                                    |   |   |   |   |
| Net                interest margin after provision for estimated credit                losses |   |                                                                  | 4,875  |                                                                      |   | 14,261                                                                  |   |   | 1,388 |   |
|                                                                                          |   |                                                                  |   |                                                                      |   |                                                                    |   |   |   |   |
| OTHER                REVENUES:                                                                |   |                                                                  |   |                                                                      |   |                                                                    |   |   |   |   |
| Other                income                                                                   |   |                                                                  | (93    | )                                                                         |   | (338                                                                    | )      |   | 9 |   |
|                                                                                          |   |                                                                  |   |                                                                      |   |                                                                    |   |   |   |   |
| Total                other revenues, net                                                      |   |                                                                  | (93    | )                                                                         |   | (338                                                                    | )      |   | 9 |   |
|                                                                                          |   |                                                                  |   |                                                                      |   |                                                                    |   |   |   |   |
| OTHER                EXPENSES:                                                                |   |                                                                  |   |                                                                      |   |                                                                    |   |   |   |   |
|     Salaries                and benefits                                  |   |                                                                  | 1,967  |                                                                      |   | 5,713                                                                   |   |   | 451 |   |
| Operating                expenses                                                             |   |                                                                  | 829    |                                                                      |   | 2,467                                                                   |   |   | 241 |   |
|                                                                                          |   |                                                                  |   |                                                                      |   |                                                                    |   |   |   |   |
| Total                other expenses                                                           |   |                                                                  | 2,796  |                                                                      |   | 8,180                                                                   |   |   | 692 |   |
|                                                                                          |   |                                                                  |   |                                                                      |   |                                                                    |   |   |   |   |
| INCOME                BEFORE INCOME TAXES                                                     |   |                                                                  | 1,986  |                                                                      |   | 5,743                                                                   |   |   | 705 |   |
|                                                                                          |   |                                                                  |   |                                                                      |   |                                                                    |   |   |   |   |
| INCOME                TAXES BENEFIT                                                           |   |                                                                  | -      |                                                                      |   | -                                                                       |   |   | - |   |
|                                                                                          |   |                                                                  |   |                                                                      |   |                                                                    |   |   |   |   |
| NET                INCOME                                                                     |   | $                                                                     | 1,986  |                                                                      | $      | 5,743                                                                   |   | $ | 705 |   |

***The      Quarter Ended September 30, 2006 - Coastal Credit***

----

**PART I.  FINANCIAL INFORMATION**
***The      Nine Months Ended September 30, 2006****-      Coastal Credit***

----

**PART I.  FINANCIAL INFORMATION**
**Discussion      of Results of Operations of Corporate and Other**

|                                                                                                                                       |   | **Quarters                Ended****September                30,** |   | **Nine                Months Ended****September                30,** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|----------------------------------------------------------------------|--------|
|                                                                                                                                       |   | **2006**                                                          |   | **2005**                                                             |   | **2006** |   | **2005** |   |
| INTEREST:                                                                                                                                  |   |                                                              |   |                                                                 |   |   |   |   |   |
| Interest                on receivables                                                                                                     |   | $                                                                 | -      |                                                                 | $      | - |   | $ | - |   | $ | - |   |
| Accretion                and other interest                                                                                                |   |                                                              | 8      |                                                                 |   | 2 |   |   | 32 |   |   | 2 |   |
|                                                                                                                                       |   |                                                              |   |                                                                 |   |   |   |   |   |   |   |   |   |
| Total                interest income                                                                                                       |   |                                                              | 8      |                                                                 |   | 2 |   |   | 32 |   |   | 2 |   |
|                                                                                                                                       |   |                                                              |   |                                                                 |   |   |   |   |   |   |   |   |   |
| Interest                expense                                                                                                            |   |                                                              | (396   | )                                                                    |   | (224 | ) |   | (1,337 | ) |   | (231 | ) |
|                                                                                                                                       |   |                                                              |   |                                                                 |   |   |   |   |   |   |   |   |   |
| Net                interest margin                                                                                                         |   |                                                              | (388   | )                                                                    |   | (222 | ) |   | (1,305 | ) |   | (229 | ) |
|                                                                                                                                       |   |                                                              |   |                                                                 |   |   |   |   |   |   |   |   |   |
| Provision                for estimated credit losses                                                                                       |   |                                                              | -      |                                                                 |   | - |   |   | - |   |   | - |   |
|                                                                                                                                       |   |                                                              |   |                                                                 |   |   |   |   |   |   |   |   |   |
| Net                interest margin after provision for estimated credit                losses                                              |   |                                                              | (388   | )                                                                    |   | (222 | ) |   | (1,305 | ) |   | (229 | ) |
|                                                                                                                                       |   |                                                              |   |                                                                 |   |   |   |   |   |   |   |   |   |
| OTHER                REVENUES:                                                                                                             |   |                                                              |   |                                                                 |   |   |   |   |   |   |   |   |   |
| Gain                from extinguishment of debt and intercompany transfers related to                creditor                notes payable |   |                                                              | 3,103  |                                                                 |   | 2,109 |   |   | 4,668 |   |   | - |   |
| Other                income                                                                                                                |   |                                                              | -      |                                                                 |   | - |   |   | - |   |   | 13 |   |
|                                                                                                                                       |   |                                                              |   |                                                                 |   |   |   |   |   |   |   |   |   |
| Total                other revenues, net                                                                                                   |   |                                                              | 3,103  |                                                                 |   | 2,109 |   |   | 4,668 |   |   | 13 |   |
|                                                                                                                                       |   |                                                              |   |                                                                 |   |   |   |   |   |   |   |   |   |
| OTHER                EXPENSES:                                                                                                             |   |                                                              |   |                                                                 |   |   |   |   |   |   |   |   |   |
| Salaries                and benefits                                                                                                       |   |                                                              | 232    |                                                                 |   | 14 |   |   | 438 |   |   | 14 |   |
| Operating                expenses                                                                                                          |   |                                                              | 279    |                                                                 |   | 272 |   |   | 1,257 |   |   | 348 |   |
|                                                                                                                                       |   |                                                              |   |                                                                 |   |   |   |   |   |   |   |   |   |
| Total                other expenses                                                                                                        |   |                                                              | 511    |                                                                 |   | 286 |   |   | 1,695 |   |   | 362 |   |
|                                                                                                                                       |   |                                                              |   |                                                                 |   |   |   |   |   |   |   |   |   |
| INCOME                (LOSS) BEFORE INCOME TAXES                                                                                           |   |                                                              | 2,204  |                                                                 |   | 1,601 |   |   | 1,668 |   |   | (578 | ) |
|                                                                                                                                       |   |                                                              |   |                                                                 |   |   |   |   |   |   |   |   |   |
| INCOME                TAXES BENEFIT                                                                                                        |   |                                                              | 248    |                                                                 |   | - |   |   | 1,219 |   |   | - |   |
|                                                                                                                                       |   |                                                              |   |                                                                 |   |   |   |   |   |   |   |   |   |
| NET                INCOME (LOSS)                                                                                                           |   | $                                                                 | 2,452  |                                                                 | $      | 1,601 |   | $ | 2,887 |   | $ | (578 | ) |

***The      Quarter Ended September 30, 2006 Compared to the Quarter Ended September 30,      2005****- Corporate and Other***

----

**PART I.  FINANCIAL INFORMATION**
***The      Nine Months Ended September 30, 2006 Compared to the Nine Months Ended September      30, 2005****- Corporate and Other***

**Financial      Condition as of **
**September      30, 2006 and December 31, 2005**

***Securitized      Finance Receivables, Net***

----

**PART I.  FINANCIAL INFORMATION**
|                                                                  |   | **September                30, 2006** |   | **December                31, 2005** |   |
|-----------------------------------------------------------------------|--------|---------------------------------------|--------|--------------------------------------|--------|
| **UAC                and Subsidiary Receivables Held for Investment** |   |                                  |   |
| UAC                Owned                                              |   | $                                     | 213    |                                 | $      | 336 |   |
| UACSC                Owned (1)                                        |   |                                  | 600    |                                 |   | - |   |
|                                                                  |   |                                  | 813    |                                 |   | 336 |   |
|                                                                  |   |                                  |   |                                 |   |   |   |
| **Securitized                Finance Receivables (2)**                |   |                                  |   |                                 |   |   |   |
| 2003-A                                                                |   |                                  | -      |                                 |   | 4,167 |   |
| 2004-A1                                                               |   |                                  | 737    |                                 |   | 3,795 |   |
| 2004-A2                                                               |   |                                  | 1,106  |                                 |   | 4,712 |   |
| 2004-B                                                                |   |                                  | 1,452  |                                 |   | 5,356 |   |
| 2004-C                                                                |   |                                  | 5,284  |                                 |   | 16,837 |   |
| 2005-A                                                                |   |                                  | 7,091  |                                 |   | 19,042 |   |
| 2005-B                                                                |   |                                  | 10,199 |                                 |   | 25,405 |   |
| 2005-C                                                                |   |                                  | 15,523 |                                 |   | 35,717 |   |
|                                                                  |   |                                  | 41,392 |                                 |   | 115,031 |   |
|                                                                  |   |                                  |   |                                 |   |   |   |
| **Off-Balance                Sheet Securitizations**                  |   |                                  |   |                                 |   |   |   |
| 2001-B                                                                |   |                                  | 6,090  |                                 |   | 12,743 |   |
| 2001-C                                                                |   |                                  | 17,961 |                                 |   | 35,009 |   |
| 2002-A                                                                |   |                                  | 18,504 |                                 |   | 34,548 |   |
|                                                                  |   |                                  | 42,555 |                                 |   | 82,300 |   |
|                                                                  |   |                                  |   |                                 |   |   |   |
| Total                Portfolios                                       |   | $                                     | 84,760 |                                 | $      | 197,667 |   |

**Finance      Receivables, Net**

----

**PART I.  FINANCIAL INFORMATION**
***Beneficial      Interest in Master Trust***

***Collateralized      Financings***

***Accrued      Interest Payable***

***Creditor      Notes Payable***

----

**PART I.  FINANCIAL INFORMATION**
**Liquidity      and Capital Resources for the Nine Months Ended September 30, 2006 and      2005**

----

**PART I.  FINANCIAL INFORMATION**
**Asset      Quality**

----

**PART I.  FINANCIAL INFORMATION**
***Securitized      Finance Receivables***

| **Current                Transaction**                                  |   | **Initial                Transaction** |   | **Original                Amount of Initial Transaction** |   | **Remaining                Balance at September 30, 2006** |   | **Remaining                Balance as a Percentage of Original Amount** |   | **Net                Loss Incurred to Original Amount at September 30,                2006** |
|-------------------------------------------------------------------------|--------|----------------------------------------|--------|-----------------------------------------------------------|--------|------------------------------------------------------------|--------|-------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------|
|  On                Balance Sheet Securitized Finance Receivables:  |   |                                   |   |                                                      |   |                                                       |
| 2004-A1                                                                 |   | 1999-C                                 |   | $364,792                                                  |   | $737                                                       |   | 0.20%                                                                   |   | 9.35%                                                                                        |
| 2004-A2                                                                 |   | 1999-D                                 |   | 302,693                                                   |   | 1,106                                                      |   | 0.37%                                                                   |   | 10.83%                                                                                       |
| 2004-B                                                                  |   | 2000-A                                 |   | 282,721                                                   |   | 1,452                                                      |   | 0.51%                                                                   |   | 8.91%                                                                                        |
| 2004-C                                                                  |   | 2000-B                                 |   | 534,294                                                   |   | 5,284                                                      |   | 0.99%                                                                   |   | 11.46%                                                                                       |
| 2005-A                                                                  |   | 2000-C                                 |   | 499,999                                                   |   | 7,091                                                      |   | 1.42%                                                                   |   | 9.48%                                                                                        |
| 2005-B                                                                  |   | 2000-D                                 |   | 510,000                                                   |   | 10,199                                                     |   | 2.00%                                                                   |   | 10.07%                                                                                       |
| 2005-C                                                                  |   | 2001-A                                 |   | 573,000                                                   |   | 15,523                                                     |   | 2.71%                                                                   |   | 9.20%                                                                                        |
|                                                                    |   |                                   |   | 3,067,499                                                 |   | 41,392                                                     |   |                                                                    |   |                                                                                         |
|  Off                Balance Sheet Securitized Finance Receivables: |   |                                   |   |                                                      |   |                                                       |
| 2001-B                                                                  |   |                                   |   | 150,002                                                   |   | 6,090                                                      |   | 4.06%                                                                   |   | 7.32%                                                                                        |
| 2001-C                                                                  |   |                                   |   | 330,000                                                   |   | 17,961                                                     |   | 5.44%                                                                   |   | 6.80%                                                                                        |
| 2002-A                                                                  |   |                                   |   | 300,000                                                   |   | 18,504                                                     |   | 6.17%                                                                   |   | 4.93%                                                                                        |
|                                                                    |   |                                   |   | 780,002                                                   |   | 42,555                                                     |   |                                                                    |   |                                                                                         |
|                                                                    |   |                                   |   |                                                      |   |                                                       |   |                                                                    |   |                                                                                         |
| Total                                                                   |   |                                   |   | $3,847,501                                                |   | $83,947                                                    |   | 2.18%                                                                   |   | 8.63%                                                                                        |

----

**PART I.  FINANCIAL    INFORMATION**
|                                                                            |   | **September                30, 2006** |   | **December                31, 2005** |   |
|---------------------------------------------------------------------------------|--------|---------------------------------------|--------|--------------------------------------|--------|
|                                                                            |   |                                  |   |                                 |   |
| **Securitized                finance receivables principal balance**            |   | $                                     | 41,392 |                                 | $      | 115,031 |   |
|                                                                            |   |                                  |   |                                 |   |   |   |
| Delinquencies:                                                                  |   |                                  |   |                                 |   |   |   |
| 30-59                days                                                       |   |                                  | 3,223  |                                 |   | 7,703 |   |
| 60-89                days                                                       |   |                                  | 785    |                                 |   | 2,390 |   |
| 90+                days                                                         |   |                                  | 392    |                                 |   | 1,271 |   |
| Total                delinquencies                                              |   | $                                     | 4,400  |                                 | $      | 11,364 |   |
|                                                                            |   |                                  |   |                                 |   |   |   |
| Delinquencies                as a percentage of securitized finance receivables |   |                                  | 10.6   | %                                    |   | 9.9 | % |
|                                                                            |   |                                  |   |                                 |   |   |   |
| **Off-balance                sheet finance receivables principal balance**      |   | $                                     | 42,555 |                                 | $      | 82,300 |   |
|                                                                            |   |                                  |   |                                 |   |   |   |
| Delinquencies:                                                                  |   |                                  |   |                                 |   |   |   |
| 30-59                days                                                       |   |                                  | 1,692  |                                 |   | 2,737 |   |
| 60-89                days                                                       |   |                                  | 506    |                                 |   | 859 |   |
| 90+                days                                                         |   |                                  | 178    |                                 |   | 553 |   |
| Total                delinquencies                                              |   | $                                     | 2,376  |                                 | $      | 4,149 |   |
|                                                                            |   |                                  |   |                                 |   |   |   |
| Delinquencies                as a percentage of securitized finance receivables |   |                                  | 5.6    | %                                    |   | 5.0 | % |

----

**PART I.  FINANCIAL INFORMATION**
|                                                                                                     |   | **Quarters                Ended September 30,** |   | **Nine                Months Ended September 30,** |   |
|----------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|----------------------------------------------------|--------|
|                                                                                                     |   | **2006**                                        |   | **2005**                                           |   | **2006** |   | **2005** |   |
|                                                                                                     |   |                                            |   |                                               |   |   |   |   |   |   |   |   |   |
| Balance                at the beginning of period                                                        |   | $                                               | 4,089  |                                               | $      | 13,425 |   | $ | 6,503 |   | $ | 11,722 |   |
| Allowance                at purchase                                                                     |   |                                            | -      |                                               |   | 2,131 |   |   | - |   |   | 5,163 |   |
| Charge-offs                                                                                              |   |                                            | (1,659 | )                                                  |   | (5,812 | ) |   | (7,975 | ) |   | (16,410 | ) |
| Recoveries                                                                                               |   |                                            | 1,314  |                                               |   | 3,580 |   |   | 7,705 |   |   | 11,037 |   |
| Provision                (recovery) for estimated credit losses                                          |   |                                            | (1,174 | )                                                  |   | 656 |   |   | (3,663 | ) |   | 2,468 |   |
|                                                                                                     |   |                                            |   |                                               |   |   |   |   |   |   |   |   |   |
| Balance                at the end of the period                                                          |   | $                                               | 2,570  |                                               | $      | 13,980 |   | $ | 2,570 |   | $ | 13,980 |   |
|                                                                                                     |   |                                            |   |                                               |   |   |   |   |   |   |   |   |   |
| Net                charge offs                                                                           |   | $                                               | 345    |                                               | $      | 2,232 |   | $ | 270 |   | $ | 5,373 |   |
| Securitized                finance receivables                                                           |   | $                                               | 41,392 |                                               | $      | 150,928 |   | $ | 41,392 |   | $ | 150,928 |   |
|                                                                                                     |   |                                            |   |                                               |   |   |   |   |   |   |   |   |   |
| Allowance                for loan losses as a percent of securitized finance                receivables  |   |                                            | 6.21   | %                                                  |   | 9.26 | % |   | 6.21 | % |   | 9.26 | % |
|                                                                                                     |   |                                            |   |                                               |   |   |   |   |   |   |   |   |   |
| Annualized                net charge offs as a percent of securitized finance                receivables |   |                                            | 3.33   | %                                                  |   | 5.92 | % |   | 0.87 | % |   | 4.75 | % |
|                                                                                                     |   |                                            |   |                                               |   |   |   |   |   |   |   |   |   |
| Allowance                for loan losses as a percent of annualized net charge offs                      |   |                                            | 186.23 | %                                                  |   | 156.59 | % |   | 713.89 | % |   | 195.14 | % |

***Finance      Receivables***

|                                                                                |   | **September                30,** |    | **December                31,** |   |
|-------------------------------------------------------------------------------------|--------|----------------------------------|---------|---------------------------------|--------|
|                                                                                |   | **2006**                         |    | **2005**                        |   |
|                                                                                |   |                             |    |                            |   |
| Finance                receivables - gross balance                                  |   | $                                | 106,554 |                            | $      | 97,820 |   |
|                                                                                |   |                             |    |                            |   |   |   |
| Delinquencies:                                                                      |   |                             |    |                            |   |   |   |
| 30-59                days                                                           |   |                             | 1,258   |                            |   | 1,124 |   |
| 60-89                days                                                           |   |                             | 688     |                            |   | 768 |   |
| 90+                days                                                             |   |                             | 832     |                            |   | 878 |   |
| Total                delinquencies                                                  |   | $                                | 2,778   |                            | $      | 2,770 |   |
|                                                                                |   |                             |    |                            |   |   |   |
| Delinquencies                as a percentage of finance receivables - gross balance |   |                             | 2.6     | %                               |   | 2.8 | % |

----

**PART I.  FINANCIAL INFORMATION**
|                                                                                                                                |   | **Quarter                Ended September 30, 2006** |   | **Nine                Months Ended September 30, 2006** |   | **One                Month Ended September 30, 2005** |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|--------|---------------------------------------------------------|--------|-------------------------------------------------------|--------|
|  Balance                at beginning of period                                                                                 |   | $                                                   | 5,832  |                                                    | $      | 6,031                                                 |   | $ | 6,100 |   |
| Charge-offs,                net of recoveries                                                                                       |   |                                                | (1,267 | )                                                       |   | (3,570                                                | )      |   | (375 | ) |
| Provision                for estimated credit losses                                                                                |   |                                                | 1,194  |                                                    |   | 3,298                                                 |   |   | 375 |   |
|  Balance                at the end of the period                                                                               |   | $                                                   | 5,759  |                                                    | $      | 5,759                                                 |   | $ | 6,100 |   |
|  Net                charge offs                                                                                                |   | $                                                   | 1,267  |                                                    | $      | 3,570                                                 |   | $ | 375 |   |
| Finance                receivables, net of unearned finance charges                                                                 |   | $                                                   | 96,987 |                                                    | $      | 96,987                                                |   | $ | 86,292 |   |
|  Allowance                for loan losses as a percent of finance receivables, net of unearned                finance charges  |   |                                                | 5.94   | %                                                       |   | 5.94                                                  | %      |   | 7.07 | % |
|  Annualized                net charge offs as a percent of finance receivables, net of unearned                finance charges |   |                                                | 5.23   | %                                                       |   | 4.91                                                  | %      |   | 5.21 | % |
|  Allowance                for loan losses as a percent of annualized net charge offs                                           |   |                                                | 113.63 | %                                                       |   | 120.99                                                | %      |   | 135.56 | % |

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

| **·  ** | the                risks and uncertainties discussed in White River’s 2005 Annual Report on                Form 10-K; |
|------------------------|-----------------------------------------------------------------------------------------------------------------------------|

| **· **  | general                economic, market, or business conditions; |
|------------------------|------------------------------------------------------------------|

----

**PART I.  FINANCIAL INFORMATION**
| **·**   | changes                in interest rates, the cost of funds, and demand for White River’s                financial services; |
|------------------------|------------------------------------------------------------------------------------------------------------------------------------|

| **· **  | changes                in White River’s competitive position; |
|------------------------|---------------------------------------------------------------------|

| **·**   | White                River’s ability to manage growth; |
|------------------------|--------------------------------------------------------------|

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

| **·**   | competitive                actions by other companies; |
|------------------------|--------------------------------------------------------|

| **·**   | changes                in laws or regulations; |
|------------------------|------------------------------------------------|

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

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

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

----

**PART      II.  OTHER INFORMATION**

**PART      II**

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

**ITEM      6.  EXHIBITS.**

| 31.1   | Certification                by Chief Executive Officer required by Rule 13a-14(a) or 15d-14(a)                of the                Exchange Act |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                              |
| 31.2   | Certification                by Chief Financial Officer required by Rule 13a-14(a) or 15d-14(a)                of the                Exchange Act |
|   |                                                                                                                                              |
| 32     | Section                1350 Certifications                                                                                                        |

----

**SIGNATURES**

|                             | **White                River Capital, Inc.**(Registrant) |
|----------------------------------|----------------------------------------------------------|
|                             |                                                     |   |
| November                13, 2006 | By:                                                      | /s/Martin              J. Szumski |
|                             |                                                     | Martin                J. SzumskiChief                Financial Officer (Signing                on behalf of the registrant as                Principal Financial Officer) |