FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(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, 1994
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from 01/01/94 TO 03/31/94
Commission File Number 0-11130
OLYMPUS CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)
UTAH 87-0166750
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
115 South Main St. Salt Lake City, Utah 84111
(Address of principal executive offices)
(Zip Code)
(801) 325-1000
(Registrant's telephone number, including area code)
Not Applicable
(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 such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of the latest practicable date.
3,099,639 shares of $1.00 par value common stock of the registrant were
outstanding as of May 13, 1994.
<PAGE>
OLYMPUS CAPITAL CORPORATION AND SUBSIDIARIES
INDEX
PART I - FINANCIAL INFORMATION: Page No.
Item 1. Financial Statements
Consolidated Condensed Statements of Financial
Condition - 3
March 31, 1994, and December 31, 1993
Consolidated Condensed Statements of Operations -
Three Months ended March 31, 1994, and 1993 4
Consolidated Condensed Statements of Cash Flows -
Three Months ended March 31, 1994, and 1993 6
Notes to Consolidated Condensed Financial Statements 8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 9
PART II - OTHER INFORMATION
Item 1. Legal Proceedings 14
Item 2. Changes in Securities 14
Item 3. Defaults Upon Senior Securities 14
Item 4. Submission of Matters to a Vote of Security 14
Holders
Item 5. Other Information 14
Item 6. Exhibits and Reports on Form 8-K 14
Signatures 15
<PAGE>
<TABLE>
<CAPTION>
OLYMPUS CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
March 31, 1994 December 31, 1993
ASSETS
<S> <C> <C>
Cash on hand and in banks $ 6,971,524 $ 8,323,332
Federal funds sold 37,986 81,099
Total cash and cash equivalents 7,009,510 8,404,431
Investments available for sale (amortized cost of
$85,826,148 in 1994, and $132,302,225 in 1993) 84,453,968 132,195,692
Investment securities (fair value $52,727,048 in 1994,
and $12,711,849 in 1994) 54,421,324 12,712,941
Loan receivables, net
Real estate loans 226,121,981 233,316,431
Real estate loans held for sale 2,053,663 6,469,655
Commercial Loans 6,632,487 7,091,863
Other loan receivables 2,086,378 2,238,761
Less unamortized loan fees (1,052,786) (1,036,824)
Less allowance for losses (6,496,321) (5,610,010)
Total Loans Receivable 229,345,402 242,469,876
Accrued interest receivable (less allowance for
uncollectible interest of $39,279 in 1994, and
$99,499 in 1993) 2,181,279 2,232,629
Real estate acquired in settlement of loans, net 3,054,916
Premises and equipment, net 7,218,306 7,333,637
Other assets and deferred charges 7,321,209 5,765,291
TOTAL ASSETS $ 391,950,998 $ 414,169,413
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 312,007,423 $ 294,560,648
Advances from Federal Home Loan Bank 10,337,277 36,649,913
Securities sold under agreements to repurchase (including
accrued interest payable) 31,722,196 44,996,245
Other liabilities and accrued expense 5,207,451 4,599,067
Total liabilities 359,274,374 380,805,873
Stockholders' equity
Common stock - $1 par value, 10,000,000 shares
authorized; shares issued and outstanding
3,099,639 in 1994, and 1993 3,099,639 3,099,639
Paid-in capital 1,894,005 1,894,005
Retained earnings - substantially restricted 29,505,817 28,476,429
Net unrealized loss on investments
available for sale (1,822,810) (106,533)
Total stockholders' equity 32,676,651 33,363,540
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 391,950,998 $ 414,169,413
See notes to consolidated condensed financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
OLYMPUS CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31, 1994 March 31, 1993
<S> <C> <C>
INTEREST INCOME:
Real estate loans $ 4,452,055 $ 4,975,879
Investement available for sale 1,608,355 1,218,585
Investment securities 78,753 264,637
Equity securities 83,500 118,700
Commercial loans 199,159 158,755
Other loans and contracts 45,313 52,066
Loan origination fees 262,228 149,977
Total 6,729,363 6,938,599
INTEREST EXPENSE:
Deposits 2,645,728 2,825,583
Advances from Federal Home Loan Bank 270,324 796,592
Securities sold under agreements to repurchase and
other borrowings 400,848 195,250
Total 3,316,900 3,817,425
NET INTEREST INCOME 3,412,463 3,121,174
Provision for loan losses 868,760 37,841
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 2,543,703 3,083,333
OTHER INCOME:
Fees 646,366 350,595
Income (loss) from real estate operations 607,671 (127,051)
Gain on sale of loans and investments 189,044 306,327
Miscellaneous 67,831 66,864
Total 1,510,912 596,735
OTHER EXPENSES:
Compensation and other employee expense 1,486,330 1,214,351
Occupancy 577,447 523,560
Advertising 58,275 113,395
Loan and collection expense (8,881) 111,672
Insurance expense 242,624 88,922
Provision for losses:
Real estate acquired in settlement of loans 54,000
Other accounts receivable (120,908)
Other operating expenses 615,432 413,665
Total 3,025,227 2,344,657
INCOME BEFORE CUMULATIVE EFFECT OF A CHANGE IN
ACCOUNTING PRINCIPLE 1,029,388 1,335,411
CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE 337,813
NET INCOME $ 1,029,388 $ 1,673,224
(Continued)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
OLYMPUS CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31, 1994 March 31, 1993
<S> <C> <C>
EARNINGS PER SHARE:
PRIMARY
Income per share of common stock before cumulative
effect of a change in accounting principle $ .32 $ .43
Cumulative effect of a change in accounting principle .10
Earnings per share of common stock $ .32 $ .53
FULLY DILUTED
Income per share of common stock before cumulative
effect of a change in accounting principle $ .32 $ .42
Cumulative effect of a change in accounting principle .10
Earnings per share of common stock $ .32 $ .52
(Concluded)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
OLYMPUS CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
March 31, 1994 March 31, 1993
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Interest received $ 6,516,210 $ 6,844,915
Fees and commissions received 1,241,674 662,097
Income (loss) from real estate operations 607,671 (127,051)
Loans originated or purchased for resale (10,543,724) (13,313,900)
Proceeds from sale of loans originated or purchased
for resale 14,959,716 12,524,605
Miscellaneous income received 67,831 60,244
Interest paid (3,355,472) (3,811,189)
Cash paid for services to suppliers and employees (2,181,375) (1,616,692)
Cash paid for other expenses (670,321) (243,267)
Net cash provided by operating activities 6,642,210 979,762
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturity of investment securities 200,000 200,000
Proceeds from sale of investment securities 3,967,437
Purchase of investment securities (344,849) (193,428)
Principal collected on investment securities 60,000 354,791
Proceeds from sale of investments available for sale 95,347,079
Purchase of investments available for sale (101,560,591)
Principal collected on investments available for sale 4,403,727 2,566,146
Principal collected on loans 33,240,953 22,761,146
Proceeds from sale of loans 71,580
Loans originated or purchased (22,289,141) (23,226,931)
Proceeds from sale of real estate 39,183
Capital expenditures for premises and equipment (59,110) (1,000,978)
Purchases of other assets (1,752,018) (40,378)
Net cash provided by (used in) investing
activities 13,498,745 (753,958)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in deposits 17,446,775 (1,811,891)
Proceeds from advances from Federal Home Loan Bank 33,600,000 9,158,200
Principal repayment on advances from Federal Home
Loan Bank (59,912,141) (5,000,377)
Net proceeds (repayment) of securities sold under
agreement to repurchase (13,361,961) 1,998,304
Proceeds from other borrowings 691,946 1,570,964
Proceeds from issuance of common stock 24,375
Net cash provided by (used in) financing
activities (21,535,876) 5,939,575
NET INCREASE (DECREASE) IN CASH AND CASH EQUVIALENTS (1,394,921) 6,165,379
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 8,404,431 12,076,564
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 7,009,510 $ 18,241,943
(Continued)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
OLYMPUS CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
March 31, 1994 March 31, 1994
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING
ACTIVITIES
<S> <C> <C>
Loans transferred to real estate acquired in
settlement of loans $ 1,530,000 None
Loan originations to facilitate the sale of real estate
acquired in settlement of loans $ 4,100,000 None
Securities transferred to investments securities from
investments available for sale (net of $462,185
unrealized value included in stockholders' equity in
1994) $ 42,401,856 None
See notes to consolidated condensed financial
(Concluded)
</TABLE>
<PAGE>
OLYMPUS CAPITAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
1. In management's opinion, the accompanying consolidated
condensed financial statements contain all adjustments
(consisting of only normal recurring accruals) necessary to
present fairly the financial condition of Olympus Capital
Corporation (the "Corporation") and subsidiaries as of March
31, 1994, and December 31, 1993, and the results of
operations for the three-month periods ended March 31, 1994,
and 1993 and the cash flows for the three-month periods
ended March 31, 1994, and 1993.
2. The results of operations for the three-month period ended
March 31, 1994, are not necessarily indicative of the
results to be expected for the full year.
3. Refer to Part II, Item 1 of this report for a discussion of
contingencies which may affect the Corporation.
4. For the quarters ended March 31, 1994, and 1993, no income
tax expense was recorded due to net operating loss carry
forwards.
5. The Corporation adopted Statement of Financial Accounting
Standards (SFAS) No. 109, "Accounting for Income Taxes,"
effective January 1, 1993. The cumulative effect of
adopting SFAS No. 109 on the Corporation's financial
statements was to increase income by $338,000 ($.10 per
share) for the three months ended March 31, 1993.
Deferred income taxes reflect the net tax effects of (a)
temporary differences between the carrying amounts of assets
and liabilities for financial purposes and the amounts used
for income tax purposes, and (b) operating loss and tax
credit carry forwards. Net deferred tax assets of
$4,700,000 as of March 31, 1994, were offset by a
corresponding valuation allowance.
6. Investments available for Sale - Effective December 31,
1993, the Corporation adopted provisions of Statement of
Financial Accounting Standards No. 115. "Accounting for
Certain Investments in Debt and Equity Securities"
(Statement No. 115). Pursuant to Statement No. 115,
investments available for sale are recorded at fair value,
with net unrealized gains or losses excluded from income
and reported as separate component of stockholders' equity.
Gains or losses on investments available for sale are
determined on the specific identification method and are
included in income when realized. Investments available for
sale include securities for which the Corporation has
entered into a commitment to sell the securities as well as securities
to be held for indefinite periods of time that management intends to
<PAGE>
use as part of its asset/liability managements strategy and
that may be sold in response to changes in interest rates,
prepayment risk, or other factors. Prior to the adoption of
Statement No. 115, investments available for sale were
carried at the lower of aggregate cost or market with
unrealized losses reported in the statement of operations.
gross unrealized gains and losses on investments available
for sale at March 31, 1994, were $113,827 and $1,486,007.
7. Investment Securities - Investment securities are carried at
amortized cost, based on management's intent and ability to
hold such securities to maturity. Discounts are accreted or
premiums amortized using the interest method over the life
of the security. Gains or losses on sales of securities are
determined based on the specific identification method.
Gross unrealized gains and losses on investment securities
at March 31, 1994, were $15,320 and $1,709,596,
respectfully.
<PAGE>
OLYMPUS CAPITAL CORPORATION AND SUBSIDIARIES
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
The following discussion and analysis covers
significant changes in the results of operations of the
Corporation and its subsidiaries for the three-month
period ended March 31, 1994, as compared to the same
period in 1993 and significant changes in the financial
condition of the Corporation and its subsidiaries since
December 31, 1993 and should be read in conjunction
with the consolidated condensed financial statements
and related notes.
RESULTS OF OPERATIONS
The following table highlights results of operation and
earnings per share for the three months ending March 31,
1994 1993
Net interest income $3,412,463 $3,121,174
Provision for loan losses 868,760 37,841
Other income 1,510,912 596,735
Other expenses 3,025,227 2,344,657
Net income 1,029,388 1,673,224
Primary earnings per share .32 .53
Fully diluted earnings per share .32 .52
A significant component of the Corporation's income is net
interest income. Net interest income is the difference
between interest earned on loans, investments and other
interest-earning assets ("interest income") and interest
paid on deposits and other interest-bearing liabilities
("interest expense"). Net interest margin, expressed as a
percentage, is net interest income divided by average
interest-earning assets. Changes in interest rates, the
volume and the mix of interest-earning assets and interest-
bearing li!bilities and the levels of non-performing assets
affect net interest income and net interest margin. Net
interest spread is the difference between the yield on
interest-earning assets and the percentage cost of interest-
bearing liabilities.
The following table highlights net interest income for the
three months ended March 31,
1994 1993
Net interest income $3,412,463 $3,121,174
Net interest spread 3.28% 3.26%
Net interest margin 3.57% 3.48%
The following table highlights interest income for the three
months ended March 31,
1994 1993
Total interest income $ 6,729,363 $ 6,938,599
Total interest income/average
interest earning assets 6.95% 7.73%
<PAGE>
Interest income from real estate loans declined $524,000 for
the first three months of 1994, compared to the same period
in 1993. Interest income from commercial real estate loans
declined $660,000, due mainly to prepayments in this
portfolio. The average balance of commercial real estate
loans was $26,000,000 lower for the first quarter of 1994,
compared to the first quarter of 1993. The average balance
of multifamily real estate loans, construction loans and
home equity loans and other consumer real estate loan
products was $16,000,000 larger for the first quarter of 1994,
compared to the same period in 1993. The average rate
earned from the real estate portfolio declined 0.55% for the
first quarter of 1994, compared to the same period in 1993.
Interest income from investments available for sale
increased $390,000 for the first quarter of 1994, compared
to the same period in 1993. The average balance of
investments available for sale, consisting entirely of
mortgage backed securities, increased $38,900,000 in the
first quarter of 1994, compared to the same period of 1993.
Income from investment securities and equity securities
decreased $220,000 for the first three months of 1994,
compared to the same period in 1993. This is the result of
generally lower rates available on these types of
securities. Interest income from non-real estate commercial
loans increased $40,000 for the first quarter of 1994,
compared to the same period in 1993. Although the average
balance of commercial loans fell $550,000 in the first
quarter of 1994, compared to the same period in 1993, the
Corporation collected $77,000 in delinquent interest during
the first quarter of 1994, associated with the pay off of a
non-performing loan. The average balances and rates on
other loans and contracts was virtually unchanged during the
first quarter of 1994, compared to the same period in 1993.
Loan origination fee income increased for the first quarter
of 1994, compared to the same period in 1993. This
increased fee income is the result of increased principal
collected on loans, which increased 46% and the attendant
amortization of fees for the first quarter of 1994, compared
to the same period in 1993.
The following table highlights interest expense for the
three months ended March 31,
1994 1993
Total interest expense $3,316,900 $3,817,425
Total interest expense/average
costing liabilities 3.71% 4.47%
Interest expense from deposits declined $180,000 for the
first quarter of 1994, as average balances increased
$8,600,000 and average rates paid decreased 0.35% compared
to the same period in 1993. For the first quarter of 1994,
average balances of certificates of deposit decreased
<PAGE>
$6,500,000, demand deposit balances increased $8,000,000 and
statement savings account balances increased $7,100,000
compared to the same period of 1993. The shift in deposits
from the time deposits to demand accounts and statement
savings accounts contributed to the overall decrease in the
rate paid for all deposits. The interest paid for advances
from Federal Home Loan Bank ("FHLB") decreased $530,000 for the first
quarter of 1994, compared to the same period of 1993. This
significant decline is the result of scheduled maturities
and prepayments of $25,000,000 of high costing FHLB advances
during the second half of 1993. The average balances of
FHLB advances decreased $11,200,000 and the average rate
paid for such advances declined 4.17% for the first quarter
of 1994, compared to the same period in 1993. Interest
expense from securities sold under repurchase agreements and
other borrowings increased $206,000 as average balances
increased $19,000,000 and average rate paid decreased 0.51%
for the first three months of 1994, compared to the same
period in 1993.
Provisions for loan losses totaled $869,000 for the first
quarter of 1994, compared to $38,000 for the same period in
1993. The provisions for 1994, were mostly established in
respect of loans secured by southern California properties
in response to uncertainties caused by recent natural
disasters and the overall weakness of the rental market for
commercial space in the region.
Overall, other income increased $920,000 for the first
quarter of 1994, compared to the same period in 1993. Fee
income increased $300,000, due primarily to prepayment fees
of $270,000 collected by the Corporation during the first
quarter of 1994. The prepayment fees were collected in
connection with the early payoff of nearly $12,000,000 of
commercial real estate loans. Income from real estate
operations increased $735,000 for the first quarter of 1994,
compared to the same period in 1993. During the first
quarter of 1994, the Corporation negotiated the settlement
of two properties held as real estate acquired in settlement
of loans at December 31, 1993. As a result of these
settlements, the Corporation collected $627,000 from real
estate operations. A portion of these collections was
recorded as expenses from real estate operations during the
first quarter of 1993. Gain on sale of loans and
investments decreased $120,000 during the first quarter of
1994, compared to the same period in 1993, even though
proceeds from sale of loans from the first three months of
1994, exceeded proceeds from the same period of 1993 by
$2,500,000. Gains from sale of loans for the first quarter
of 1994, declined as interest rates to originate new
mortgage loans rose.
<PAGE>
Other expenses increased $680,000 for the first quarter of
1994, compared to the same period in 1993. Compensation
expense increased $272,000 for the first quarter of 1994,
compared to the same period in 1993. The number of full
time equivalent employees at March 31, 1994, was twenty-six
higher compared to March 31, 1993. Much of the increase
was for retail savings branch personnel. Management
believes that retail branches represent an opportunity to
build low cost core deposits and to offer lending products
and services to a wider range of customers. During the
first quarter of 1993, advertising expense included the cost
of television commercials. No similar expense was incurred
during the first quarter of 1994. The decrease in loan and
collection expense for the first quarter of 1994, reflects
reimbursement of previously charged foreclosure costs in
connection with the settlement of a previously reported non-
performing asset. Fewer and less costly foreclosure
proceedings during the first quarter of 1994, led to an
overall decline in loan and collections expense. During the
first half of 1993, the Corporation received the final
installment of its secondary reserve credit. This credit,
which amounted to $208,000 for the first quarter of 1993,
reduced the Federal Deposit Insurance Corporation (FDIC)
insurance premium the Corporation pays for insured deposits.
The recovery for losses, other accounts receivable, for the
first quarter of 1993 was the final installment from a
previously charged-off investment. Included in other
expense for the first quarter of 1994, was legal expenses
for review of strategic alternatives in connection with an
expression of interest to acquire the Corporation. This
expression of interest has been terminated.
FINANCIAL CONDITION
Total consolidated assets at March 31, 1994, were
$391,951,000, a decrease of $22,218,000 from $414,169,000 at
December 31, 1993. This resulted primarily from a decrease
in loan receivables. The proceeds from loan payoffs and
increased deposits were used to pay advances from the
Federal Home Loan Bank and other borrowing sources.
Investment securities increased $41,710,000 during the first
quarter of 1994, the result of a transfer of securities from
investments available for sale to investments held to
maturity. The Corporation charged the carrying value of the
investment $462,000, with an offseting entry to
stockholders' equity for the difference between the carrying
value and the fair value at the transfer date. The
Corporation amortized $11,555 of this unrealized holding
loss reported in equity to offset the effect on interest
income of the amortization of the discount created by this
transfer. The transferred securities included fixed rate,
<PAGE>
fifteen year original maturity mortgage backed securities,
mortgage backed securities collaterized by loans with five
and seven year balloon payments and a mortgage backed
security pledged as collateral for a long term letter of
credit issued by the principal subsidiary of the
Corporation. In reassessing the classification of these
assets management concluded they bear many of the same
characteristics as mortgage loans currently being originated
for the Corporation's portfolio.
Loan receivables declined $13,500,000, from December 31,
1993 to March 31, 1994, with commercial real estate loans
declining the most, at $12,500,000. During the first
quarter of 1994, a large commercial real estate loan
borrower prepaid approximately $11,000,000 of commercial
real estate loans. Also, during the first quarter of 1994,
the Corporation funded a loan for the sale of property
previously reported as real estate acquired in settlement of
loans. The Corporation originated more loans for portfolio
during the first quarter of 1994, compared to the same
period in 1993, yet increased the volume of sales from the
same period of 1993 by selling loans from real estate loans
held for sale. Non real estate commercial loans declined
primarily though the payoff of a commercial loan
previously recorded as a non performing asset. During the
first quarter of 1994, the Corporation funded a loan for the
sale of a hydro-electric plant previously reported as real estate
acquired in settlement of loans. The increase in provisions for loss
is in response to commercial real estate conditions in California.
Other assets and deferred charges increased $1,550,000 due
mainly to the acquisition of a mortgage servicing portfolio
for $1,300,000. Unposted debits less credits to customers
accounts increased $540,000 during the first quarter of
1994.
Total deposits increased 6% or $17,450,000 from December 31,
1993 to March 31, 1994. Most of this increase was in the
form of time deposits. The proceeds from these deposits and
from collections from loans were used to payoff maturing
advances from Federal Home Loan Bank and obligations arising
from securities sold under agreements to repurchase.
Deposits to borrowers accounts for taxes and insurance
caused the greatest increase in other liabilities.
LIQUIDITY AND CAPITAL RESOURCES
Regulations of the Office of Thrift Supervision ("OTS"),
require Olympus Bank, a Federal Savings Bank, the principal
subsidiary of the Corporation, ("the Bank") to maintain
<PAGE>
specified levels of liquid assets, generally defined as cash
and marketable securities which are quickly convertible into
cash. Such assets must equal at least 5% of the daily
average balance of total withdrawable savings and short-term
borrowings (liquidity base). As of March 31, 1994, the
Bank's average liquid assets were approximately $22,130,000
or 6.4% of its liquidity base.
The Bank had loan commitments of approximately $34,161,000
as of March 31, 1994. In addition, management has
determined to increase funding for single-family
construction loans and existing multi-family properties. It
is expected that these commitments will be funded primarily
from loan sales, together with cash from maturities and
monthly payments received from the existing portfolio of
loans and MBS.
In connection with the insurance of savings accounts by the
Savings Association Insurance Fund (SAIF), the Bank is
required to meet certain minimum capital standards
consisting of a tangible capital requirement of 1.5% of
tangible assets, a core or leveraged capital requirement of
3% of tangible assets, and a risked-based capital
requirement. The risk-based requirement takes each asset
and gives it a weighting of 0% to 100% based upon credit
risk as defined in the regulations of the OTS. The risk-based
requirement as of March 31, 1994, was 8% of the risk weighted assets.
Eligible capital to meet this test is composed of core or tier one
capital and supplementary or tier two capital.
Supplementary or tier two capital is composed of general
loan loss reserves up to a maximum of 1.25% of risk weighted
assets.
The following is a summary of the Bank's regulatory capital
at March 31, 1994.
Requirement Actual Amount
Exceeding
Capital Ratio Capital Ratio Requirements
Tangible $ 5,880,000 1.50% $ 32,598,000 8.32% $ 26,718,000
Core 11,759,000 3.00 32,598,000 8.32 20,839,000
Risk-Based 17,875,000 8.00 35,420,000 15.85 17,545,000
<PAGE>
NON-PERFORMING ASSETS
Non-performing assets totaled $1,143,000 at March 31, 1994,
compared with $5,297,000 at December 31, 1993. The balance
of real estate acquired in settlement of loans, $3,055,000
at December 31,1993, had been sold at March 31, 1994. The
sales were financed in part by loans provided by the
Corporation. Major non-performing loans at March 31, 1994,
consisted of a commercial real estate loan and commercial
business loans. The commercial real estate loan is an
office building located in southern California.
OLYMPUS CAPITAL CORPORATION AND SUBSIDIARIES
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
There have been no material developments in any
previously reported legal proceedings to which the
Corporation or its subsidiaries is a party during the
quarter ended March 31, 1994.
Item 2. Changes in Securities.
None
Item 3. Defaults Upon Senior Securities.
None
Item 4. Submission of Matters to a Vote of Security Holders.
Not Applicable
Item 5. Other Information.
None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
None
(b) Reports on Form 8-K
There were no reports on Form 8-K filed during the
quarter ended
March 31, 1994.
<PAGE>
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.
OLYMPUS CAPITAL CORPORATION
Date May 16, 1994 By: Brad Foley
Brad Foley, Vice President/
Chief Accounting Officer
Date May 16, 1994 By: R. Gibb Marsh
R. Gibb Marsh, President
<PAGE>
