-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, J5x6va0Z2O7P4BZMx8zut4U+8aP3mdx4vm49y6pfHSgOFLwEuWC/CopivvIOut2e WgGkz1MnD3UTHC3KDfmigA== 0000950124-98-002980.txt : 19980518 0000950124-98-002980.hdr.sgml : 19980518 ACCESSION NUMBER: 0000950124-98-002980 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980515 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: D&N CAPITAL CORP CENTRAL INDEX KEY: 0001036263 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-22767 FILM NUMBER: 98624077 BUSINESS ADDRESS: STREET 1: 400 QUINCY STREET CITY: HANCOCK STATE: MI ZIP: 49930 BUSINESS PHONE: 9064822700 MAIL ADDRESS: STREET 1: 400 QUINCY STREET CITY: HANCOCK STATE: MI ZIP: 49930 10-Q 1 FORM 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1998 -------------------------- OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to --------- --------------------- Commission file number 0-22767 ----------------------------------------- D&N Capital Corporation ------------------------------------------------------ (Exact name of registrant as specified in its charter) Delaware 31-1517665 ------------------------------- ------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 400 Quincy Street, Hancock, Michigan 49930 ------------------------------------------------------ (Address of principal executive offices) (906) 482-2700 ------------------------------------------------------ (Registrant's telephone number, including area code) ------------------------------------------------------ (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES [X] No [ ] APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Common Stock, $300 par value 31,781 ---------------------------- ----------------------------- Series A Preferred Shares, $25.00 par value 1,210,000 - ------------------------------------------- ----------------------------- (Class) (Shares Outstanding as of April 30, 1998) ================================================================================ 2 D&N CAPITAL CORPORATION INDEX
Page No. -------- PART I Statement of Condition - March 31, 1998 and December 31, 1997 3 Statement of Income - Three months ended March 31, 1998 4 Statement of Changes in Stockholders' Equity - Three months ended March 31, 1998 5 Statement of Cash Flows - Three months ended March 31, 1998 6 Notes to Financial Statements 7 Management's Discussion and Analysis of Financial Condition and Results of Operations 9 PART II Other Information 13
- 2 - 3 D&N CAPITAL CORPORATION STATEMENT OF CONDITION at March 31, 1998 (In thousands, except share data)
March 31, December 31, 1998 1997 --------- ------------ (Unaudited) ASSETS: Loans receivable: Residential mortgage loans $52,867 $52,784 Commercial mortgage loans 7,525 7,601 ------- ------- Net loans receivable 60,392 60,385 Cash 2 2 Due from Parent 84 -- Other assets 20 -- Accrued interest receivable 363 358 ------- ------- TOTAL ASSETS $60,861 $60,745 ======= ======= LIABILITIES: Due to Parent $ -- $ 202 Other liabilities 5 9 ------- ------- TOTAL LIABILITIES 5 211 STOCKHOLDERS' EQUITY: Preferred stock, par value $25.00; 2,500,000 authorized, 1,210,000 issued and outstanding 30,250 30,250 Common stock, par value $300.00 per share ; 250,000 shares authorized, 31,781 shares issued and outstanding 9,534 9,534 Additional paid-in capital 20,716 20,716 ------- ------- Total paid-in capital 60,500 60,500 Retained earnings 356 34 ------- ------- TOTAL STOCKHOLDERS' EQUITY $60,856 $60,534 ------- ------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $60,861 $60,745 ======= =======
See Notes to Financial Statements - 3 - 4 D&N CAPITAL CORPORATION STATEMENT OF INCOME (UNAUDITED) For the Three Months Ended March 31, 1998 (In thousands) INTEREST INCOME: Loans: Residential mortgage loans $ 884 Commercial mortgage loans 156 ------- Total loan interest income 1,040 Intercompany interest 2 ------- TOTAL INTEREST INCOME 1,042 NONINTEREST EXPENSE: Advisory fees 31 Other expenses 8 ------- TOTAL NONINTEREST EXPENSE 39 NET INCOME $ 1,003 PREFERRED STOCK DIVIDEND REQUIREMENTS 681 ------- NET INCOME APPLICABLE TO COMMON SHARES 322 COMMON STOCK DIVIDENDS PAID -- ------- RETAINED EARNINGS INCREASE $ 322 ======= NET INCOME PER SHARE $ 10.14 ======= WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 31,781 =======
See Notes to Financial Statements - 4 - 5 D&N CAPITAL CORPORATION STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) For the Three Months Ended March 31, 1998 (In thousands) PREFERRED STOCK: Balance at beginning of period $ 30,250 -------- Balance at end of period 30,250 -------- COMMON STOCK: Balance at beginning of period 9,534 -------- Balance at end of period 9,534 -------- ADDITIONAL PAID IN CAPITAL: Balance at beginning of period 20,716 -------- Balance at end of period 20,716 -------- RETAINED EARNINGS: Balance at beginning of period 34 Net Income 1,003 Preferred dividends (681) Common dividends -- -------- Balance of end of period 356 -------- TOTAL STOCKHOLDERS' EQUITY $ 60,856 ========
See Notes to Financial Statements - 5 - 6 D&N CAPITAL CORPORATION STATEMENT OF CASH FLOW (UNAUDITED) For the Three months ended March 31, 1998 (In thousands) OPERATING ACTIVITIES: Net Income $ 1,003 Adjustments to reconcile net income to net cash provided by operating activities: Net change in: Accrued interest receivable (5) Due from Parent (286) Other assets (20) Accounts payable (4) ------- Net cash provided by operating activities 688 ------- INVESTING ACTIVITIES: Purchase of mortgage loans (7,352) Principal payments received 7,345 ------- Net cash used by investing activities (7) ------- FINANCING ACTIVITIES: Preferred stock dividends paid (681) Common stock dividends paid -- Net cash used by financing activities (681) ------- NET INCREASE (DECREASE) IN CASH -- CASH AT BEGINNING OF PERIOD 2 ------- CASH AT MARCH 31, 1998 $ 2 =======
See Notes to Financial Statements - 6 - 7 D&N CAPITAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION D&N Capital Corporation (the "Company"), is a Delaware corporation incorporated on March 18, 1997 and created for the purpose of acquiring, holding and managing real estate assets. The Company is a wholly-owned subsidiary of D&N Bank (the "Bank"), a federally chartered savings bank, which itself is wholly owned by D&N Financial Corporation ("D&N"), a financial services holding company organized under the laws of the state of Delaware. All shares of common stock are held by the Bank. The Series A Preferred Shares are traded on NASDAQ as DNFCP. The Company used the net proceeds raised from the initial public offering of the Series A Preferred Shares and the sale of the Common Stock to the Bank to purchase from the Bank, the Company's initial portfolio of $60,524,000, of residential and commercial mortgage loans ("Mortgage Loans") at their estimated fair values. The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting solely of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 1998 are not necessarily indicative of the results that may be expected for the full year. NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Mortgage Loans: Mortgage loans are carried at the principal amount outstanding, plus premium or discount, upon purchase from the Bank. Interest income is recognized using the interest method, which approximates a level rate of return over the term of the loan. Allowance for Loan Losses: The allowance for possible losses on loans is maintained at a level believed adequate by management to absorb potential losses from impaired loans as well as losses from the remainder of the portfolio. Management's determination of the - 7 - 8 level of the allowance is based upon evaluation of the portfolio, past experience, current economic conditions, size and composition of the portfolio, collateral location and values, cash flow positions, industry concentrations, delinquencies and other relevant factors. At March 31, 1998, there was no allowance for losses on loans. Accounts Receivable from Parent: Accounts Receivable from parent at March 31, 1998 represents principal and interest payments due the Company from the Bank, partially offset by prior amounts due the Bank by the Company. Accounts Payable to Parent: Accounts payable to parent as of December 31, 1997, represents the Common Stock Dividend due the Bank, plus advisory fees and other expenses paid by the Bank for the Company, offset partially, by principal and interest payments due, which the Bank owes to the Company. Offering Costs: Costs incurred in connection with the raising of capital through the sale of preferred stock were charged against stockholders' equity upon the issuance of Common Shares to the Bank. Dividends: Preferred Stock. Dividends on the Series A Preferred Shares are noncumulative from issuance (July 17,1997) and are payable quarterly on the last day of March, June, September and December at a rate of 9.00% per annum of the liquidation preference ($25.00 per share). Common Stock. The Bank, as shareholder, is entitled to receive dividends when, as and if declared by the Board of Directors from funds legally available after all preferred dividends have been paid. Net Income Per Common Share: Net Income per Common Share: Net income per share is computed by dividing net income after preferred dividends by the weighted average number of common shares outstanding. Diluted earnings per share is not presented, as there are no outstanding dilutive securities. The Company has elected to be treated as a Real Estate Investment Trust ("REIT") pursuant to provision of the Internal Revenue Code of 1986, as amended - 8 - 9 (the "Code"). As a result, the Company will not be subject to federal income tax on its taxable income to the extent it distributes at least 95% of its taxable income to its shareholders and it meets certain other requirements as defined in the Code. The Company intends to maintain its qualification as a REIT for federal income tax purposes. The Company intends to make qualifying dividends (for federal income tax purposes) of all of its taxable income to its Common and Preferred Stock shareholders, a portion of which may be in the form of "consent" dividends, as defined under the Code. As a result, the Company has made no provision for income taxes in the accompanying financial statements. NOTE 3 - MORTGAGE LOANS Mortgage loans consist of both residential and commercial mortgage loans. Residential mortgage loans consist of Adjustable Rate Mortgages ("ARMs") and Fixed Rate Mortgages ("FRMs"). The commercial mortgage loans consist of Fixed and Variable Rate loans, a majority of which have balloon payments. The following represents the Mortgage Loan portfolio (in thousands):
3/31/98 12/31/97 --------- --------- Residential mortgage loans $ 52,867 $ 52,784 Commercial mortgage loans 7,525 7,601 --------- --------- $ 60,392 $ 60,385 ========= =========
Each of the Mortgage Loans are secured by a mortgage, deed of trust or other security instrument which created a first lien on the residential dwelling and/or commercial property. NOTE 4 - DIVIDENDS For the three months ended March 31, 1998, the Company paid dividends on Series A Preferred Shares in the amount of $680,625. NOTE 5 - RELATED PARTY TRANSACTION The Company has entered into an Advisory Agreement (the "Advisory Agreement") with the Bank (the "Advisor") requiring an annual payment of $125,000. The Advisor provides advice to the Board of Directors and manages the operations of the Company as defined in the Agreement. The Agreement has an initial term of five years commencing on September 9, 1997 and automatically - 9 - 10 renews for additional five year periods, unless the Company delivers a notice of nonrenewal to the Advisor as defined in the Advisory Agreement. Advisory fees incurred for the three months ended March 31, 1998 totaled approximately $31,000. The Company also entered into two servicing agreements with the Bank for the servicing of the commercial and residential mortgage loans. Pursuant to each servicing agreement, the Bank performs the servicing of the Mortgage Loans owned by the Company, in accordance with normal industry practice. The Servicing Agreements can be terminated without cause upon a thirty day advance notice given to the Servicer. The servicing fee is 0.375% of the outstanding principal balance for the residential mortgage loans and commercial mortgage loans. The servicing fees are netted out of interest, prior to remittance by the Bank to the Company. NOTE 6 - FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is defined as the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation, and is best evidenced by a quoted market price, if one exists. The calculation of estimated fair value is based on market condition at a specific point in time and may not be reflective of future fair values. Certain financial instruments and all nonfinancial instruments are excluded from the scope of SFAS 107. Accordingly, the fair value disclosures required by SFAS 107 may provide only a partial estimate of the fair value of the Company. Fair values among REITs are not comparable due to the wide-range of limited valuation techniques and numerous estimates which must be made. This lack of an objective valuation standard, introduces a great degree of subjectivity to the derived or estimated fair value. Therefore, readers are cautioned against using this information for purposes of evaluating the financial condition of the Company compared with the other REITs. Loans were valued using methodologies suitable for each loan type. These methodologies and the key assumption made are discussed below. The fair value of the Company's commercial loans was estimated by assessing the two main risk components: credit risk and interest rate risk. The estimated cash flows were discounted, using rates appropriate for each maturity that incorporates the effects of interest rate changes. For residential mortgage loans for which market rates for comparable loans are readily available, the fair value was estimated by discounting expected cash flows, adjusted for prepayments. The discount rates used for residential - 10 - 11 mortgages were secondary market yields for comparable mortgage-backed securities, adjusted for risk. These discount rates incorporated the effects of interest rate changes only, since the estimated cash flows were previously adjusted for credit risk. The book value and fair value of Mortgage Loans at March 31, 1998, is as follows (in thousands): Residential Mortgage Loans $ 52,867 $ 52,951 Commercial Mortgage Loans 7,525 7,525 --------- -------- Total Portfolio $ 60,392 $ 60,476 ========= ========
Assets and liabilities in which carrying value approximates fair value: The carrying values of certain financial assets and liabilities, including cash, accrued interest receivable, due-from-parent, due-to-parent and other assets and liabilities, are considered to approximate their respective fair value due to their short-term nature and negligible exposure to credit losses. - 11 - 12 D&N CAPITAL CORPORATION ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The principal business of the Company is to acquire and hold and manage residential and commercial mortgage loans ("Mortgage Loans") that will generate net income for distribution to stockholders. The Company currently intends to continue to acquire all its Mortgage Loans from The Bank consisting of whole loans secured by first mortgages or deeds of trust on single-family residential real estate properties or on commercial real estate properties. All shares of common stock are held by the D&N Bank. The Series A preferred shares are traded on NASDAQ as DNFCP. The Bank administers the day-to-day activities of the Company in its role as Advisor under the Advisory Agreement. The Bank also services the Company's Mortgage Loans under each of the Servicing Agreements. It is the intention of the Company and the Bank that any agreements and transactions between the Company, and the Bank, are consistent with market terms, including the price paid and received for Mortgage Loans, upon their acquisition or disposition by the Company, or in connection with the servicing of such Mortgage Loans. The requirement in the Certificate of Designation establishing the Series A Preferred Shares that certain actions of the Company be approved by a majority of the Independent Directors is also intended to ensure fair dealing between the Company and the Bank. RESULTS OF OPERATIONS The Company reported net interest income for the quarter ended March 31, 1998 of approximately $1,042,000. Interest income from residential and commercial mortgage loans was $884,000 and $156,000, respectively. After a deduction of approximately $31,000 in advisory fees and $8,000 in other administrative expenses, the Company reported net income of approximately $1,003,000 for the quarter ended March 31, 1998. The Company reported net income per common share of $10.14 for the quarter ended March 31, 1998. For the quarter ended March 31, 1998, the Company paid $680,625 in preferred stock dividends. Dividends on the common stock are paid to the Bank when, as and if declared by the Board of Directors of the Company out of funds available. The Company expects to pay common stock dividends at least annually in amounts necessary to continue to preserve its status as a real estate - 12 - 13 investment trust ("REIT") under the Internal Revenue Code of 1986, as amended (the "Code"). MORTGAGE LOANS Residential mortgage loans consist of Adjustable Rate Mortgages ("ARMs"), and Fixed Rate Mortgages ("FRM's"). The commercial mortgage loans consist of fixed and variable rate loans, a majority of which have balloon payments. Reinvestments in mortgage loans have been and will continue to be consistent in maintaining an approximate 90% and 10% ratio between residential and commercial mortgage loans, respectively. All Mortgage Loans are purchased from the Bank. For the quarter ended March 31, 1998, the Company purchased replacement mortgage loans having an outstanding principal balance of approximately $7,352,000 from the Bank. In addition, the Company received approximately $7,345,000 of principal payments on its portfolio from the Servicer. INTEREST RATE RISK The Company's income consists primarily of interest payments on Mortgage Loans. If there is a decline in interest rates (as measured by the indices upon which the interest rates of the residential ARM and variable rate commercial mortgage loans are based), then the Company will experience a decrease in income available to be distributed to its shareholders. There can be no assurance that an interest rate environment in which there is a significant decline in interest rates over an extended period of time would not adversely affect the Company's ability to pay dividends on the Series A Preferred Shares. SIGNIFICANT CONCENTRATION OF CREDIT RISK Concentration of credit risk arises when a number of customers engage in similar business activities, or activities in the same geographical region, or have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions. Concentration of credit risk indicates the relative sensitivity of the Company's performance to both positive and negative developments affecting a particular industry. Approximately 90% of the Company's total Mortgage Loan portfolio are loans secured by residential real estate properties located in Michigan. Consequently, these residential mortgage loans may be subject to a greater risk of default than other comparable, geographically diverse, residential mortgage loans in the event of adverse economic, political or business developments and natural hazards in Michigan. - 13 - 14 In addition, the majority of the commercial mortgage properties underlying the Company's commercial mortgage loans are located in the Detroit metropolitan area. Consequently, these commercial mortgage loans may be subject to greater risk of default in the event of adverse economic, political or business developments in the Detroit metropolitan area. LIQUIDITY RISK MANAGEMENT The objective of liquidity management is to ensure the availability of sufficient cash flows to meet all of the Company's financial commitments and to capitalize on opportunities for the Company's business expansion. In managing liquidity, the Company takes into account various legal limitations placed on a REIT as discussed below in Other Matters. The Company's principal liquidity needs are to maintain the current portfolio size through the acquisition of additional Mortgage Loans as Mortgage Loans currently in the portfolio mature, or prepay, and to pay dividends on the Series A Preferred Shares. The acquisition of additional Mortgage Loans is intended to be funded with the proceeds obtained from the repayment of principal balances by individual borrowers. The Company does not have and does not anticipate having any material capital expenditures. YEAR 2000 COMPLIANCE D&N utilizes various electronic computer systems for the delivery of its financial services products, for the maintenance of its financial and other business records, and for general management purposes. Some of these systems include legacy procedures that may have been designed and historic data that may have been stored in such a manner that inconsistences or failures might occur when dates from the new millennium are considered. Commonly known as the Year 2000 problem, a myriad of related potential computing difficulties face entities that rely extensively upon computer systems. D&N's major computer systems include financial control applications provided by M&I Data Services, Inc; mortgage lending applications provided by ALLTEL Information Services, Inc. and FiTech, Inc.; and internally maintained micro-computer and network systems which support management functions and communications. D&N is working closely with its data services vendors to ascertain that their applications, upon which the Bank relies, will be certifiable as compliant by the end of 1998. D&N has determined that its internally maintained systems, consisting primarily of a Lotus Notes server array and various workstation-based business suite software, are Year 2000 compliant as currently installed. - 14 - 15 D&N's duty is to monitor the progress of its vendors toward the attainment of compliance and to test for compliance. At this time, D&N deems the progress attained by each of its service bureau vendors to achieve Year 2000 compliance in a timely fashion to be acceptable. OTHER MATTERS As of March 31, 1998, the Company believed that it was in full compliance with the REIT tax rules and that it will continue to qualify as a REIT under the provision of the Code. The Company calculates that: * its Qualified REIT Assets, as defined in the Code, are approximately 100% of its total assets, as compared to the federal tax requirements that at least 75% of its total assets must be Qualified REIT assets. * 97% of its revenues qualify for the 75% source of income test and 100% of its revenues qualify for the 95% source of income test under the REIT rules. * none of the revenue was subject to the 30% income limitation under the REIT rules. The Company also met all REIT requirements regarding the ownership of its common and preferred stocks and anticipates meeting the 1998 annual distribution and administrative requirements. - 15 - 16 D&N CAPITAL CORPORATION PART II - OTHER INFORMATION ITEM 1: LEGAL PROCEEDINGS None ITEM 2: CHANGES IN SECURITIES None ITEM 3: DEFAULTS UPON SENIOR SECURITIES None ITEM 4: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS (a) The annual meeting of stockholders was held on February 27, 1998. (b) The matters approved by the sole common shareholder, D&N Bank, at the annual meeting, were as follows: Number of Directors: To enhance and broaden the base of expertise and professional oversight that D&N Capital Corporation's Board of Directors may provide to the Company, the number of directors which shall constitute the whole board is increased from five to six. Election of Directors: The following directors were elected for the ensuing year: George J. Butvilas Gail A. Mroz James S. Bogan Kenneth R. Janson William J. McGarry Richard E. West ITEM 5: OTHER INFORMATION Filings on Statements with the Securities and Exchange Commission On April 16, 1998 D&N Capital Corporation and D&N Financial Corporation, filed a registration statement (S-8) with the Securities and Exchange commission relating to 20,000 shares of D&N Capital - 16 - 17 D&N CAPITAL CORPORATION PART II - OTHER INFORMATION (CONTINUED) Corporation's Preferred Stock, par value $25 per share and 160,000 shares of D&N Financial Corporation's Common Stock, par value $.01 per share, to be offered to pursuant to the D&N Bank 401(k) Plan and Trust. ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K (a) The following exhibit is included herein: 12 (a) Computation of Ratio of Earnings to Fixed Charges 12 (b) Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividend Requirements (27) Financial Data Schedule (b) Reports on Form 8-K: No reports on Form 8-K have been filed during the quarter Ended March 31, 1998. - 17 - 18 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. D&N CAPITAL CORPORATION /s/ Kenneth R. Janson -------------------------------------- Kenneth R. Janson, President and Chief Executive Officer /s/ Daniel D. Greenlee -------------------------------------- Daniel D. Greenlee, Chief Financial Officer and Treasurer Date: May 15, 1998 ------------------------ 19 INDEX TO EXHIBITS Exhibit No. Exhibits ----------- -------- 12 (a) Computation of Ratio of Earnings to Fixed Charges 12 (b) Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividend Requirements 27 Financial Data Schedule EX-12.(A) 2 EXHIBIT 12.(A) 1 EXHIBIT 12(a) D&N CAPITAL CORPORATION Computation of ratio of earnings to fixed charges
For the Quarter Ended March 31, 1998 (In thousands, except ratio): ----------------------------- Net income $ 1,003 Fixed charges: Advisory fees 31 Total fixed charges 31 Earnings before fixed charges $ 1,034 Fixed charges, as above $ 31 Ratio of earnings to fixed charges 33.4
EX-12.(B) 3 EXHIBIT 12.(B) 1 EXHIBIT 12(b) D&N CAPITAL CORPORATION Computation of ratio on earnings to fixed charges and preferred stock dividend requirements
For the Quarter March 31, 1998 (In thousands, except ratio): ----------------------------- Net income $1,003 Fixed charges: Advisory fees 31 Total fixed charges 31 Earnings before fixed charges 1,034 Fixed charges, as above 31 Preferred stock dividend requirements 681 Fixed charges including preferred stock dividends 712 Ratio of earnings to fixed charges and preferred stock dividend requirements 1.45
EX-27 4 EXHIBIT 27
9 3-MOS DEC-31-1998 JAN-01-1998 MAR-31-1998 2 0 0 0 0 0 0 60,392 0 60,861 0 0 5 0 0 30,250 30,250 356 60,861 1,040 0 2 1,042 0 0 1,042 0 0 39 1,003 1,003 0 0 1,003 10.14 10.14 7.53 0 0 0 0 0 0 0 0 0 0 0
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