-----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, ILwOMR1ZTQJFhiXlnNNMw4W91skNLySTSCP24CtnMvZ4YuhnjC2V/PNSNO25tCt0 v4XiNu7FBF7udFk8wXGZZQ== 0000950148-95-000913.txt : 19951202 0000950148-95-000913.hdr.sgml : 19951202 ACCESSION NUMBER: 0000950148-95-000913 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950630 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: 95597985 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 6-30-95 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 JUNE 30, 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 (IRS Employer Identification Number) incorporation or organization) 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 PRESIDENTIAL MORTGAGE COMPANY (A California Limited Partnership) AND SUBSIDIARIES Consolidated Statements of Income Unaudited
THREE MONTHS ENDED SIX MONTHS ENDED June 30, June 30, June 30, June 30, 1995 1994 1995 1994 Interest Income: Interest and fees on loans receivable 2,191,000 2,835,000 4,577,000 5,682,000 Interest on deposits with banks 233,000 65,000 459,000 131,000 --------- ---------- --------- ---------- Total interest income 2,424,000 2,900,000 5,036,000 5,813,000 Interest Expense: Interest on thrift certificates greater than $100,000 2,000 5,000 6,000 19,000 Interest on other thrift certificates 1,045,000 663,000 2,021,000 1,324,000 Interest on notes payable 379,000 532,000 804,000 1,042,000 --------- ---------- --------- ---------- Total interest expense 1,426,000 1,200,000 2,831,000 2,385,000 --------- ---------- --------- ---------- Net interest income 998,000 1,700,000 2,205,000 3,428,000 Provision for loan losses 554,000 468,000 1,000,000 685,000 --------- ---------- --------- ---------- Net interest income after provision for loan losses 444,000 1,232,000 1,205,000 2,743,000 Noninterest income: Trustee and reconveyance fees 738,000 813,000 1,523,000 1,690,000 Other income 285,000 278,000 593,000 546,000 Gain on sale of loans 1,818,000 614,000 3,333,000 614,000 --------- ---------- --------- ---------- 2,841,000 1,705,000 5,449,000 2,050,000 Noninterest expense: General and administrative 1,729,000 1,807,000 3,142,000 3,317,000 Salaries, employee benefits and personnel services 1,895,000 1,983,000 3,692,000 3,742,000 Amortization of organization costs 45,000 25,000 73,000 39,000 Depreciation and amortization 123,000 136,000 239,000 271,000 Expenses on real estate acquired in settlement of loans (136,000) 588,000 25,000 935,000 Net loss (gain) on sales of real estate acquired in settlement of loans 249,000 199,000 326,000 117,000 --------- ---------- --------- ---------- 3,905,000 4,738,000 7,497,000 8,421,000 --------- ---------- --------- ---------- Net income before tax provision (620,000) (1,801,000) (843,000) (2,828,000) --------- ---------- --------- ---------- Tax Provision (84,000) 0 (514,000) 0 --------- ---------- --------- ---------- Net income after tax provision (536,000) (1,801,000) (329,000) (2,828,000) ========= ========== ========= ==========
See accompanying Notes to Consolidated Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations. 3 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 $11.5 million (11.1%) to $92.2 million at June 30, 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, real estate acquired in settlement of loans ("OREO") and interest receivable, offset by increases in accounts receivable and excess yield receivable. Loans receivable decreased by $9.3 million (14.3%), to $55.7 million from $65.1 million, as a result of loan pay offs and loan sales. Cash and cash equivalents decreased by $5.8 million (29.5%), to $13.8 million from $19.6 million. However, this decline in cash and cash equivalents was offset by a $4.8 million (87.3%) increase in accounts receivable, to $10.4 million at June 30, 1995 from $5.5 million at December 31, 1994. Accounts receivable reflected $6.4 million due for loans sold as of June 30, 1995, for which payment was not received until July 1995. Excess yield receivable increased $.9 million, to $1.8 million from $.9 million, reflecting primarily 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." OREO declined by $2.3 million (30.6%), to $5.3 million at June 30, 1995 from $7.6 million at December 31, 1994, reflecting sales of OREO. Interest receivable declined by $.6 million (50.3%), to $.5 million from $1.1 million, primarily due to the reduction of the loan portfolio. Total liabilities decreased $11.2 million (12.0%) to $82.1 million at June 30, 1995 from $93.3 at December 31, 1994. The decrease resulted from declines in notes payable, thrift certificates payable, accounts payable, accrued expenses and interest payable and mortgages payable on OREO. Notes payable decreased by $4.8 million (32.4%), to $10.0 million from $14.8 million, due to pay down of the bank debt. Thrift certificates payable decreased by $4.8 million (6.8%) to $64.7 million from $69.5 million, reflecting the reduction in total assets of Pacific Thrift. Accounts payable, accrued expenses and interest payable decreased by $.7 million (11.9%), to $4.9 million from $5.6 million at December 31, 1994, primarily due to a $.4 million reduction in accrued expenses for the environmental remediation of OREO acquired by Pacific Thrift after receiving a lower bid for completion of the work. Mortgages payable on OREO decreased by $1.0 million (43.2%), to $1.3 million from $2.3 million, due to sale of OREO. Total partnership capital decreased by $.3 million (3.2%) to $10.1 million from $10.4 million, due to net losses of $.3 million incurred during the six months ended June 30, 1995. RESULTS OF OPERATIONS The Company incurred a net operating loss of $.6 million for the quarter ended June 30, 1995, compared with a net operating loss of $1.8 million for the quarter ended June 30, 1994. Net operating losses for the six months ended June 30, 1995 were $.8 million, compared with $2.8 million for the six months ended June 30, 1994. However, due to the recognition of tax benefits from Pacific Thrift's operating loss carryforward equal to $.1 million for the second quarter and $.5 million for the six months ended June 30, 1995, net losses after taxes were $.5 million for the quarter ended June 30, 1995 and $.3 million for the six months ended June 30, 1995. The reduction in the net operating loss in the first and second quarters of 1995 was due primarily to increases in noninterest income and decreases in noninterest expenses from the first and second quarters of 1994. Total interest income decreased by $.5 million (16.4%) for the quarter and $.8 million (13.4%) for the six months ended June 30, 1995, from the same periods of 1994. Total interest expense increased by $.2 million (18.8%) for the quarter and $.4 million (18.7%) for the six months ended June 30, 1995 from the same periods of 1994, due to higher interest rates paid on thrift certificates by Pacific Thrift. Net interest income before provision for loan losses decreased by $.7 million (41.3%) for the quarter and $1.2 million (35.7%) for the six months ended June 30, 1995, from the same periods of 1994. Net interest income after provision for loan losses decreased by $.8 million (64.0%) for the quarter and $1.5 million (56.1%) for the six months ended June 30, 1995, from the same periods of 1994. Noninterest income increased by $1.1 million (66.6%) for the quarter and by $2.6 million (91.2%) for the six months ended June 30, 1995, primarily as a result of increases in gain on sale of loans, partially offset by decreases in trustee and reconveyance fees. Gains on sale of loans increased by $1.2 million (196.1%) for the quarter and $2.7 million (442.8%) for the six months ended June 30, 1995. Noninterest expense decreased by $.8 million (17.6%) for the quarter and $.9 million (11.0%) for the six months ended June 30, 1995. Reductions in noninterest expense were primarily due to reductions in general and administrative expenses, salaries, employee benefits and personnel services, and expenses on OREO. General and administrative expenses declined by $.1 million (4.3%) for the quarter and $.2 million (5.3%) for the six months ended June 30, 1995 from the same periods of 1994. Salaries, employee benefits and personnel services decreased by $.1 million (4.4%) for the quarter and $.05 million (1.3%) for the six months ended June 30, 1995 from the same periods of 1994. Expenses on OREO decreased by $.7 million (123%) for the quarter and $.9 million (97.3%) for the six months ended June 30, 1995 compared with the same periods of 1994. Offsetting these 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-----