U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(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, 1997
[ ] 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: 0-2664
INVESTORS FINANCE, INC.
(Exact name of small business issuer as specified in its charter)
___________________
Hawaii 99-0112763
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
50 South Beretania Street, Honolulu, Hawaii 96813
(Address of principal executive offices) (Zip Code)
Issuer's telephone number: (808) 533-7437
___________________
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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 ]
Number of shares outstanding of the issuer's common stock as of
September 30, 1997: 1,252,496.
Transitional Small Business Disclosure Format (check one): Yes [ ] No [ x ]
PART I.
Financial statements (unaudited)
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INVESTORS FINANCE, INC.
KUKUI PLAZA SUITE C117B
50 SOUTH BERETANIA STREET
HONOLULU, HI 96813
COMPARATIVE BALANCE SHEET
AS OF: 30SEP97
ASSETS
CURRENT YEAR PRIOR YEAR
SEPTEMBER 30, 1997 DECEMBER 31, 1996
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CASH - NON-INTEREST-BEARING 100,895.61 5,524.97
CASH IN INTEREST-BEARING ACCOUNTS 2,110.85
CASH IN BROKERAGE ACCOUNTS 709.87 55,970.90
CORPORATE SECURITIES 156,975.00
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101,605.48 220,581.72
RECEIVABLES:
NOTES RECEIVABLE 359,505.58 501,177.80
ACCOUNTS RECEIVABLE 95,298.61 38,001.71
COMMISSIONS ADVANCED-RECEIVABLE 10,198.62 1,000.00
LOAN LATE CHARGES RECEIVABLE 53.76 148.76
ACCRUED INCOME 872.87 3,297.89
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TOTAL RECEIVABLES: 465,929.44 543,626.16
LESS:
RESERVE FOR LOAN LOSSES (36,627.74) (36,931.20)
DEFERRED LOAN ORIGINATION FEES (244.17) (3,444.46)
DEFERRED LOAN ORIGINATION COSTS 150.81 559.25
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429,208.34 503,809.75
FURNITURE & FIXTURES 269,801.24 269,801.24
ALLOWANCE FOR DEPREC. - FURN. & FIXTURES (224,160.75) (204,660.44)
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45,640.49 65,140.80
REAL ESTATE - KUKUI PLAZA 322,337.10 322,337.10
RESERVE FOR DEPRECIATION - KUKUI PLAZA (94,776.27) (88,441.35)
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227,560.83 233,895.75
TAXES WITHHELD 60.69
SECURITY DEPOSITS 3,040.13 3,040.13
PREPAID EXPENSE (901.14) 3,162.48
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TOTAL ASSETS 806,214.82 1,029,630.63
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LIABILITIES
CURRENT YEAR PRIOR YEAR
SEPTEMBER 30, 1997 DECEMBER 31, 1996
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NOTES PAYABLE - BANKS 100,000.00
NOTES PAYABLE - STOCKHOLDERS 191,599.74 339,283.35
INVESTMENT CERTIFICATES:
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TOTAL INVESTMENT CERTIFICATES:
OTHER ACCRUED LIABILITIES 1,889.00 18,892.23
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TOTAL LIABILITIES 293,488.74 358,175.58
EQUITY
CAPITAL - UNISSUED STOCK (148,601.00)
CAPITAL STOCK NO-PAR 1,372,303.04 1,372,303.04
RETAINED EARNINGS (679,727.91) (660,414.25)
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543,974.13 711,888.79
NET INCOME/(LOSS) YEAR-TO-DATE (31,248.05) (40,433.74)
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TOTAL EQUITY 512,726.08 671,455.05
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TOTAL LIABILITIES & EQUITY 806,214.82 1,029,630.63
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INVESTORS FINANCE, INC.
CONSOLIDATED STATEMENT OF INCOME & EXPENSE
AS OF: SEPTEMBER 30, 1997
<---------- 3 MONTHS ENDING----------> <---------YEAR-TO-DATE AS OF--------->
SEPTEMBER 30, 1997 SEPTEMBER 30, 1996 SEPTEMBER 30, 1997 SEPTEMBER 30, 1996
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OPERATING INCOME
INTEREST INCOME:
EARNED INTEREST - CONSUMER LOANS 736 2,484 1,866 7,182
EARNED INTEREST - R.E. LOANS 7,587 13,280 29,335 26,370
EARNED INTEREST - COMMERCIAL LOANS 1,307 4,769 8,542 15,603
EARNED LATE CHARGES 265 602 1,444 3,180
LOAN ORIGINATION FEES 1,983 570 8,403 707
INTEREST ON INVESTMENTS 9 1,066 1,331 2,020
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11,887 22,772 50,921 55,062
INTEREST EXPENSE (3,272) (5,559)
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NET INTEREST SPREAD 8,615 22,772 45,362 55,062
LESS:
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8,615 22,772 45,362 55,062
OTHER INCOME:
COMMISSIONS EARNED 34,138 38,781 89,902 134,581
INCOME FROM CHARGED-OFF LOANS 1,142 4,202 4,055 10,670
INCOME FROM IDEAL FIN ACCTS 67
COMMISSION ON INSURANCE 53
MISCELLANEOUS INCOME 1,500 1,000 3,870 2,229
TAX REFUNDS 140
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45,396 66,755 143,329 202,662
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TOTAL OPERATING INCOME 45,396 66,755 143,329 202,662
OPERATING EXPENSES
PERSONNEL EXPENSES:
SALARIES & WAGES 5,807 7,130 17,409 38,660
SALARIES & WAGES-M/D COMMISSIONS 14,014 14,060 34,225 55,622
PAYROLL TAXES 1,449 1,332 4,070 6,294
EMPLOYEE BENEFITS 2,649 1,560 7,405 5,465
CONSULTANT'S EXPENSE (500)
------------------ ------------------ ------------------ ------------------
23,918 24,082 63,109 105,541
OCCUPANCY EXPENSES:
REAL PROPERTY - TAXES 575 571 1,718 1,692
DEPRECIATION EXPENSE 6,433 6,472 19,363 17,301
INSURANCE EXPENSE 1,380 2,552 2,850 6,385
RENT ON OFFICE SPACE 5,880 9,834 18,265 26,634
UTILITIES 1,187 1,100 3,266 3,041
MAINTENANCE & REPAIRS 2,715 2,935 8,165 7,925
PARKING EXPENSE 50 300 251 505
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18,219 23,766 53,878 63,483
OTHER OPERATING EXPENSES:
SOH DCCA ASSESSMENT 392 522 1,282 672
F.D.I.C. ASSESSMENT 1,500
ADVERTISING EXPENSE 491 969 908
AUDITING EXPENSE 1,740 3,818 5,220 22,545
CREDIT REPORTS 17 179 98 479
LEGAL FEES 200 1,668 1,811 2,606
POSTAGE EXPENSE 2,531 926 3,673 2,825
OFFICE EXPENSE 1,028 1,193 3,227 3,170
PRINTING & STATIONERY 729 330 1,106 517
COMPUTER EXPENSE 1,607 1,981 5,381 5,725
GOVERNMENT LICENSE FEES 25 100 234
BANK SERVICE CHARGES 38 113
BROKERAGE CHARGES 5
TELEPHONE 3,978 4,763 12,922 12,079
DUES/FEES - MORTGAGE DIVISION 638 412 2,338 587
DUES/FEES - HEAD OFFICE 61 123 388 455
DONATIONS 85 105 320 420
SUBSCRIPTIONS - HEAD OFFICE 52 60 52
SUBSCRIPTIONS - MORTGAGE DEPT 201 578 673 1,217
TRAVEL & PER DIEM 168 749 422 965
COLLECTION FEES 94 61 282
PROMOTIONAL EXPENSE 230 230 858 3,517
OTHER EXPENSE - (MISC.) 894 520 1,038 697
OUTSIDE SERVICES 3,591 4,325 13,564 7,232
NOTARY EXPENSE 8 58 97 83
TITLE FEE - AUTO 40
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18,160 23,117 55,726 68,809
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TOTAL OPERATING EXPENSES 60,298 70,964 172,712 237,834
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NET INCOME (LOSS) FROM OPERATIONS (14,902) (4,209) (29,383) (35,172)
NON-OPERATING EXPENSES:
STOCKHOLDER'S EXPENSES:
STOCKHOLDERS' MEETING EXPENSE 798 1,865
STOCK TRANSFER AGENT 2,120 5,262
------------------ ------------------ ------------------ ------------------
798 2,120 1,865 5,262
------------------ ------------------ ------------------ ------------------
TOTAL NET INCOME (LOSS) (15,700) (6,330) (31,248) (40,434)
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