-----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, A+s/9CEIPTx/YvY+GglxgqUHnm/XoUXUd2VtJPnM2XGKRcJc9eSpfsyMiTZhvh+y s8t4pC813qE5ctwxMYqT9w== 0000823063-98-000005.txt : 19981113 0000823063-98-000005.hdr.sgml : 19981113 ACCESSION NUMBER: 0000823063-98-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19981112 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MORTGAGE BANCFUND OF AMERICA CENTRAL INDEX KEY: 0000823063 STANDARD INDUSTRIAL CLASSIFICATION: PERSONAL CREDIT INSTITUTIONS [6141] IRS NUMBER: 330281356 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 033-17643 FILM NUMBER: 98745196 BUSINESS ADDRESS: STREET 1: 2 CORPORATE PARK STE 106 CITY: IRVINE STATE: CA ZIP: 92714 BUSINESS PHONE: 7142532900 MAIL ADDRESS: STREET 1: 2 CORPORATE PARK STREET 2: SUITE 106 CITY: IRVINE STATE: CA ZIP: 92606-5128 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 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 September 30, 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: 33-17643 THE MORTGAGE BANCFUND OF AMERICA, a California Limited Partnership (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) California 33-0281356 STATE OR OTHER JURISDICTION OF INCORPORATION IRS EMPLOYER IDENTIFICATION NUMBER 2402 MICHELSON DRIVE, SUITE 255, IRVINE, CALIFORNIA 92612-1323 ADDRESS OF PRINCIPAL EXECUTIVE OFFICES(ZIP CODE) (949) 253-2900 REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE N/A 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 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 reports), and (2) has been subject to such filing requirements for the past 90 days. YES X NO_______ APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS: 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 subsequent to the distribution of securities under a plan confirmed by a court. N/A YES NO_______ APPLICABLE ONLY CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. N/A MORTGAGE BANCFUND OF AMERICA (a California Limited Partnership) Index to Form 10-Q September 30, 1998 Part I - Financial Information Item 1 - Consolidated Financial Statements Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations Part II - Other Information Item 1 - Legal Proceedings Item 2 - Changes in Securities Item 3 - Defaults Upon Senior Securities Item 4 - Submission of Matters to a Vote of Security Holders Item 5 - Other Information Item 6 - Exhibits and Reports on Form 8-K Signatures MORTGAGE BANCFUND OF AMERICA (a California Limited Partnership) Part I - Financial Information Item 1 - Consolidated Financial Statements Consolidated Balance Sheets Consolidated Income Statements Consolidated Statements of Partner's Equity Consolidated Statements of Cash Flow Notes to Consolidated Financial Statements See attached exhibit MORTGAGE BANCFUND OF AMERICA (a California Limited Partnership) Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources: Liquidity continues to be a serious problem for the Partnership. Management will depend upon the operations of foreclosed real estate and the ultimate sale of that real estate to generate funds necessary to operate. There are no plans to seek additional capital from outside sources, either debt nor equity. The capital account has eroded by nearly 98% of the original $100.00 cost per limited Partnership unit to a value of $2.14 per Partnership unit outstanding. This is due to losses experienced over the past several years. Results of Operations: The Partnership continues to report poor operating results since December 31, 1997. As discussed above, book value per Partnership unit outstanding is down to $2.14; a 98% decline in value. Management is of the opinion losses will continue as the southern California economy slowly recovers from a depression. To date the liquidation or other types of losses on properties foreclosed on has not resulted in a positive return for the Partnership. Management is operating at this point in a liquidation mode in which the assets will continue to be managed and sold as those opportunities arise. Management will continue to manage and attempt to sell property which has been foreclosed on and continue the collection effort on the remaining loan receivable still on the Partnership books. MORTGAGE BANCFUND OF AMERICA (a California Limited Partnership) Part II - Other Information Item 1 - Legal Proceedings None. Item 2 - Changes in Securities None. Item 3 - Defaults Upon Senior Securities N/A Item 4 - Submission of Matters to a Vote of Security Holders None. Item 5 - Other Information None. Item 6 - Exhibits and Reports on Form 8-K None. MORTGAGE BANCFUND OF AMERICA (a California Limited Partnership) 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. MORTGAGE BANCFUND OF AMERICA (a California Limited Partnership) Registrant ________________________________ _________________________ Robert Y. Strom, General Partner Date THE MORTGAGE BANCFUND OF AMERICA (a California Limited Partnership) CONSOLIDATED BALANCE SHEETS (Unaudited) ASSETS Dec. 31, 1997 Sept 30,1998 Cash $ 129,033 43,406 Loans receivable (Note 1) 118,191 72,223 Accounts receivable (Note 2) 0 0 Other real estate owned (Note 3) 1,872,799 1,828,341 Other assets 9,777 124,208 Total Assets $2,129,800 2,068,178 LIABILITIES & PARTNER'S EQUITY Liabilities Accounts payable 172,368 177,464 Notes payable (Note 4) 1,876,012 1,865,624 Total liabilities 2,048,380 2,043,088 Minority interest (157,380) (161,233) Partner's equity 238,800 186,323 Total liabilities & partner's equity $2,129,800 2,068,178 Book value per limited partner unit outstanding $ 2.74 $ 2.14 CONSOLIDATED INCOME STATEMENTS For the Nine Months Ended 9/30/97 9/30/97 9/30/98 9/30/98 Three Months Nine Months Three Months Nine Months REVENUES: Interest: Loans 5,498 16,047 4,139 13,533 Investments 0 1,932 0 143 Total interest 5,498 17,979 4,139 13,676 Net partnership income (loss) (6,964) (26,986) (2,893) (2,526) Other income 250 2,222 5,124 23,456 Total income (1,216) (6,785) 6,370 34,606 COSTS & EXPENSES: Costs of loans 2,609 7,771 2,527 7,801 General & administrative costs 23,280 92,638 30,832 79,282 Total costs & expenses 25,889 100,409 33,359 87,083 NET LOSS (27,105) (107,194) (26,989) (52,477) Net loss per partnership unit (.31) (1.23) (.31) (.60) outstanding Partnership units outstanding 87,087 87,087 87,087 87,087 THE MORTGAGE BANCFUND OF AMERICA (a California Limited Partnership) CONSOLIDATED STATEMENTS OF PARTNER'S EQUITY (Unaudited) General Limited Partner Partner Total Balance, December 31, 1996 $ (322,997) $ 671,817 $348,820 Allocation of net loss (5,501) (104,519) (110,020) Balance, December 31, 1997 (328,498) 567,298 238,800 Allocation of net loss (2,624) (49,853) (52,477) Balance, September 30, 1998 $ (331,122) $ 517,445 $ 186,323 CONSOLIDATED STATEMENTS OF CASH FLOW For the Nine Months Ended CASH FLOWS FROM OPERATING ACTIVITIES: 9/30/97 9/30/98 Net (loss) $ (110,020) $ (52,477) Adjustments to reconcile net income to cash provided by operating activities: (Decrease) increase in accounts payable (61,861) 5,096 (Increase) in accounts receivable (6,237) 0 (Decrease) increase in due to general partner 0 0 (Decrease) increase in minority interest (157,380) (3,853) (Increase) decrease in other liabilities 0 0 Decrease (increase) in other assets (9,598) (114,430) NET CASH PROVIDED (USED) BY OPERATING ACTIVITI (345,096) (165,664) CASH FLOW FROM INVESTING ACTIVITIES: Net change in loans receivable 73,377 45,968 Net change in other real estate owned 59,278 44,459 NET CASH PROVIDED (USED) BY FINANCING ACTIVITI 132,655 90,427 CASH FLOWS FROM FINANCING Activities Increase(Decrease) in notes payable 195,570 (10,390) NET CASH PROVIDED (USED) BY FINANCING ACTIVITI 195,570 (10,390) NET INCREASE(DECREASE) IN CASH (16,871) (85,627) CASH, Beginning of period 145,904 129,033 CASH, End of Period $ 129,033 $ 43,406 THE MORTGAGE BANCFUND OF AMERICA (a California Limited Partnership) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1 - Loans Receivable Loans receivable are carried at the unpaid principal balance net of unearned loan fees. Points and other loan fees are deferred over the life of the loan. In management's opinion the book value of these loans is equal to the estimated net realizable value. Note 2 - Accounts Receivable This account represents funds owed to the Partnership from affiliate partnerships, and projects which were acquired through foreclosure. Note 3 - Other Real Estate Owned All real estate owned by the Partnership, which was acquired through foreclosure, was disposed of during 1996. The Account also includes properties which are owned by the majority-owned limited partnership. A condensed balance sheet of the majority owned partnership follows: CONDENSED BALANCE SHEET, unaudited, at September 30, 1998 Assets: Cash and other assets 91,424 Real estate 1,828,341 Total assets $1,919,765 Liabilities and Partner's Equity: Accounts payable 35,056 Notes payable 1,865,624 Due to affiliates (143,165) Partner's equity 162,250 Total liabilities & partner's equity $1,919,765 Note 4 - Notes Payable Account represents debt directly owed to commercial banks by the Partnership. Funds borrowed were used to develop property acquired through foreclosure. Account also represents amounts owed by the majority owned limited partnerships on real estate owned. Note 5 - Accounting Policy The consolidated financial statements include the accounts of the Partnership and majority-controlled limited partnerships. All material intercompany transactions, profits, and balances have been eliminated. All adjustments made to the financial statements are of a normal recurring nature necessary to present fairly the financial condition of the Partnership. -----END PRIVACY-ENHANCED MESSAGE-----