-----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, Iu/h0RpncLVS20SN50mOHzFSaS2pmrhm8q0QDk6GpOe3mmlbhrZW/dcREXLctDzZ J8tN8bkm1EPhhhuUDkG4Jg== 0000950148-95-000912.txt : 19951202 0000950148-95-000912.hdr.sgml : 19951202 ACCESSION NUMBER: 0000950148-95-000912 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19951130 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PRESIDENTIAL MORTGAGE CO CENTRAL INDEX KEY: 0000757078 STANDARD INDUSTRIAL CLASSIFICATION: ASSET-BACKED SECURITIES [6189] IRS NUMBER: 953611304 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-14500 FILM NUMBER: 95597984 BUSINESS ADDRESS: STREET 1: 21031 VENTURA BLVD CITY: WOODLAND HILLS STATE: CA ZIP: 91364 BUSINESS PHONE: 8189928999 10-Q/A 1 AMENDMENT TO 10-Q FILED FOR 3-31-95 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q/A AMENDED QUARTERLY REPORT ________________ /X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1995 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 2-94289 PRESIDENTIAL MORTGAGE COMPANY (Exact name of Registrant as specified in its charter) California 95-3611304 (State or other jurisdiction of incorporation or organization) (IRS Employer Identification Number)
21031 Ventura Boulevard Woodland Hills, California 91364 (Address of Principal Executive Office) (Zip Code) Registrant's telephone number, including area code (818) 992-8999 Indicate by check mark whether the Registrant (1) has filed all reports required 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 NO X --- --- 2 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FINANCIAL CONDITION Total consolidated assets of Presidential Mortgage Company (referred to herein as the "Company" with respect to consolidated information, and as "Presidential" with respect to the unconsolidated operations of Presidential Mortgage Company) decreased $2.0 million (1.9%) to $101.7 million at March 31, 1995 from $103.7 million at December 31, 1994. The decrease resulted primarily from declines in cash and cash equivalents, loans receivable, excess yield receivable, and interest receivable, offset by an increase in accounts receivable. Loans receivable decreased by $5.8 million (8.9%), to $59.3 million from $65.1 million, as a result of loan pay offs and loan sales. Cash and cash equivalents decreased by $1.3 million (6.9%), to $18.3 million from $19.6 million. Interest receivable declined by $.5 million (41.9%), to $.6 million from $1.1 million, primarily due to the reduction of the loan portfolio. Accounts receivable increased by $6.2 million (111.8%), primarily due to $6.1 million of loans originated for sale which were sold in March, for which payment was not received until April 1995. In addition, accounts receivable reflect an asset valued by management at $.8 million, representing the present value of an annual servicing released fee payable to Pacific Thrift and Loan Company ("Pacific Thrift"), the Company's primary operating subsidiary, by the purchaser of certain loans originated for sale. See the Company's Annual Report on Form 10-K for the year ended December 31, 1994, Item 1. "Business -- Lending Activities -- Loans Originated for Sale." Total liabilities decreased $2.3 million (2.4%) to $91.1 at March 31, 1995 from $93.3 at December 31, 1994. The decrease resulted primarily from declines in notes payable, thrift certificates payable and mortgages payable on OREO. Notes payable decreased by $1.0 million (6.5%), to $13.8 million from $14.8 million, due to pay down of the bank debt. Thrift certificates decreased by $.5 million (.7%) to $69.0 million from $69.5 million. Mortgages payable on OREO decreased by $.5 million (22.1%), to $1.8 million from $2.3 million. Total partnership capital increased by $.2 million (2.0%) to $10.6 million from $10.4 million, due to net income of $.2 million earned during the quarter ended March 31, 1995. RESULTS OF OPERATIONS The Company incurred a net operating loss of $.2 million for the quarter ended March 31, 1995, compared with a net operating loss of $1.0 million for the quarter ended March 31, 1994. However, due to the recognition of a $.4 million tax benefit from Pacific Thrift's operating loss carryforward, net income after taxes was $.2 million. The reduction in the net operating loss in the first quarter of 1995 was due primarily to an increase in total interest income. Total interest income decreased by $.3 million (10.4%), due to a reduction of $.5 million (16.2%) in interest and fees on loans receivable. Total interest expense increased by $.2 million (18.6%) to $1.4 million from $1.2 million, due to increased rates paid by Pacific Thrift on thrift certificates under $100,000. Net interest income for the quarter ended March 31, 1995 compared with the same quarter of the prior year decreased by $.5 million (30.2%), and by $.8 million (49.7%) after provision for loan losses. Noninterest income increased by $1.5 million (128%) to $2.6 million from $1.1 million, primarily as a result of a $1.5 million increase in gains on sale of loans and a $.1 million decrease in trustee and reconveyance fees. Noninterest expense decreased by $.1 million (2.5%) to $3.6 million from $3.7 million, primarily as a result of a $.2 million reduction in expenses on OREO and a $.1 million reduction in general and administrative expense, partially offset by a net loss on sales of OREO of less than $.1 million. PROVISION FOR LOAN LOSSES The provision for loan losses was $.4 million for the first quarter of 1995, compared with $.2 million for the first quarter of 1994. The total allowance for loan losses was $3.9 million at March 31, 1995 compared with $4.3 million at December 31, 1994, reflecting sales and payoffs of loans as to which reserves had previously been taken and improvements in status in some portfolio loans. Included in loan sales were $2 million in Title I loans, as to which Pacific Thrift had previously reserved $.2 million. LIQUIDITY AND CAPITAL RESOURCES The primary source of the Company's liquidity is the cash and cash equivalents maintained by Pacific Thrift in connection with its deposit-taking and lending activities. At March 31, 1995, cash and cash equivalent assets totalled $18.3 million, compared with $19.6 million at December 31, 1994. Presidential does not maintain significant cash and cash equivalent assets on its own behalf, and uses substantially all of its cash flow to pay down the bank debt on a monthly basis. 3 PRESIDENTIAL MORTGAGE COMPANY (A California Limited Partnership) AND SUBSIDIARIES Consolidated Statements of Income Unaudited
THREE MONTHS ENDED March 31, March 31, 1995 1994 Interest Income: Interest and fees on loans receivable 2,386,000 2,848,000 Interest on investments 226,000 67,000 ---------- ---------- Total interest income 2,612,000 2,915,000 Interest Expense: Interest on thrift certificates greater than $100,000 4,000 14,000 Interest on other thrift certificates 976,000 661,000 Interest on notes payable 425,000 510,000 ---------- ---------- Total interest expense 1,405,000 1,185,000 ---------- ---------- Net interest income 1,207,000 1,730,000 Provision for loan losses 446,000 217,000 ---------- ---------- Net interest income afer provision for loan losses 761,000 1,513,000 Noninterest income: Trustee and reconveyance fees 785,000 877,000 Other income 308,000 266,000 Gain on sale of Title I loans 1,515,000 0 ---------- ---------- 2,608,000 1,143,000 Noninterest expense: General and administrative 1,413,000 1,511,000 Salaries, employee benefits and personnel services 1,797,000 1,759,000 Amortization of organization costs 28,000 13,000 Depreciation and amortization 116,000 135,000 Expenses on real estate acquired in settlement of loans 161,000 348,000 Net (gain)loss on sales of real estate acquired in settlement of loans 77,000 (82,000) ---------- ---------- 3,592,000 3,684,000 ---------- ---------- Net income before tax provision (223,000) (1,028,000) ---------- ---------- Tax Provision (430,000) 0 ---------- ----------- Net income 207,000 (1,028,000) ========== ===========
See accompanying Notes to Consolidated Financial Statements and Management's discussion and Analysis of Financial Condition and Results of Operations. 4 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this Amended Report to be signed on its behalf by the undersigned, thereunto duly authorized. PRESIDENTIAL MORTGAGE COMPANY (Registrant) November 29, 1995 JOEL R. SCHULTZ --------------- Joel R. Schultz, Chief Managing Officer of Registrant; President of Presidential Services Corporation ("PSC"), general partner of Presidential Management Company, a California limited partnership, general partner of the Registrant November 29, 1995 CHARLES J. SIEGEL ----------------- Charles J. Siegel, Chief Financial and Accounting Officer of the Registrant -----END PRIVACY-ENHANCED MESSAGE-----