White River Capital launches stock buy-back

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White River Capital Inc. today said it will buy back as many as 150,000 shares, or about 3.9 percent, of its common stock outstanding as of June 30.

The Indianapolis-based company is the parent of Coastal Credit LLC, of Virginia Beach, which acquires sub-prime loans from franchised car dealers, and of locally based Union Acceptance Corp., which oversees a $4.2 million portfolio of non-prime auto receivables.

Earlier this month, White River said it expects to post a third-quarter net loss of about $20.5 million as the result of a $34.5 million pre-tax write-off.

“This write-off is a result of the continued volatility throughout the financial services industry and the effect such volatility has had on the market prices of financial services stocks,” the company said Oct. 21. “The goodwill write-off had no effect on White River’s cash balances, liquidity or borrowing capacity.”

Apart from the write-off, White River said it expects operating earnings in the range of $1.3 million to $1.5 million.

White River shares, which closed Friday at $13.20, were unchanged this morning.

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