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Previous: HEMACARE CORP /CA/, 10-Q, 1999-11-15 |
Next: MULTI BENEFIT REALTY FUND 87-1, 10QSB, 1999-11-15 |
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
------------------------------------------------------
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended September 30, 1999
Commission File Numbers 33-11623, 33-15833, 33-16145, 33-21329, 33-25751,
33-29239 33-33807, 33-51771, 33-53115, 33-25751,
33- 61167
CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
-----------------------------------------------------------------------
(Exact name of registrant as specified in its registration statements)
<TABLE>
<CAPTION>
<S> <C>
Delaware 13-3320910
------------ ---------------------
(State or other jurisdiction of incorporation) (I.R.S. Employer Identification No.)
11 Madison Avenue, New York, New York 10010
- ------------------------------------- ----------------------
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code 212-325-1811
----------------------
</TABLE>
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:
1,000 shares of common stock
outstanding as of November 8, 1999
<PAGE>
CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
----------------------------------------------------
INDEX
------
<TABLE>
<CAPTION>
Page
Number
PART I FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition as of September 30, 1999
and December 31, 1998 3
Statements of Operations for the Nine Months Ended
September 30, 1999 and 1998 4
Statements of Cash Flows for the Nine Months Ended
September 30, 1999 and 1998 5
Notes to Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
PART II OTHER INFORMATION
Item 1. Legal Proceedings 8
Item 2. Changes in Securities 8
Item 3. Defaults Upon Senior Securities 8
Item 4. Submission of Matters to a Vote of Security Holders 8
Item 5. Other Information 8
Item 6. Exhibits and Reports on Form 8-K 8, 9
SIGNATURE 9
INDEX TO EXHIBITS 10
</TABLE>
Page 2
<PAGE>
CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
----------------------------------------------------
STATEMENTS OF FINANCIAL CONDITION
---------------------------------
<TABLE>
<CAPTION>
September 30, December 31,
1999 1998
------------------------ --------------------------
(unaudited)
(in thousands, except par value and share data)
<S> <C> <C>
ASSETS:
Cash $ 11 $ 11
Mortgage Pass-Through Certificates 604 695
Receivables from affiliates 734 619
Accrued Interest 15 16
------------ -------------
Total Assets $ 1,364 $ 1,341
============ =============
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
LIABILITIES AND STOCKHOLDER'S EQUITY:
Other Payables $ 47 $ 47
------------ -------------
Total Liabilities 47 47
------------ -------------
Stockholder's Equity:
Common stock, (par value $1.00 per share,
1,000 shares authorized and outstanding) 1 1
Retained earnings 1,316 1,293
------------ -------------
Total Stockholder's Equity 1,317 1,294
------------ -------------
Total Liabilities and Stockholder's Equity $ 1,364 $ 1,341
============ =============
</TABLE>
See Accompanying Notes to Financial Statements.
Page 3
<PAGE>
CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
----------------------------------------------------
STATEMENTS OF OPERATIONS
------------------------
(unaudited)
<TABLE>
<CAPTION>
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
September 30, 1999 September 30, 1998 September 30, 1999 September 30, 1998
------------------ ------------------ ------------------ ------------------
(in thousands) (in thousands)
<S> <C> <C> <C> <C>
Revenues:
Principal transactions $ 1 $ 24 $ 5 $ 1,481
Interest income 12 38 40 621
------------------ ------------------ ------------------ ------------------
Total revenues 13 62 45 2,102
Expenses:
Interest expense - 23 - 386
General and administrative expenses 3 2 9 4
------------------ ------------------ ------------------ ------------------
Total expenses 3 25 9 390
Income from operations before income
taxes 10 37 36 1,712
Income taxes 4 13 13 599
------------------ ------------------ ------------------ ------------------
Net income $ 6 $ 24 $ 23 $ 1,113
================== ================== ================== ==================
</TABLE>
See Accompanying Notes to Financial Statements.
Page 4
<PAGE>
CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
----------------------------------------------------
STATEMENTS OF CASH FLOWS
------------------------
(unaudited)
<TABLE>
<CAPTION>
Nine Months Nine Months
Ended Ended
September 30, 1999 September 30, 1998
------------------------ ------------------------
(in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
- -------------------------------------
<S> <C> <C>
Net income $ 23 $ 1,113
Adjustments to reconcile net income to net cash
Provided by (Used for) operating activities:
Decrease in Mortgage Pass-Through
Certificates 91 4,015
(Increase) in receivables from affiliates (115) (241)
Decrease (Increase) in accrued interest receivable 1 (148)
--------------------- ------------------------
Net Cash Provided by
Operating Activities - 4,739
--------------------- ------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
- -------------------------------------
(Decrease) in payables to affiliates - (4,739)
--------------------- ------------------------
Net Cash (Used for) Financing
Activities - (4,739)
--------------------- ------------------------
Net increase in cash - -
--------------------- ------------------------
Cash at beginning of period 11 11
--------------------- ------------------------
Cash at end of period $ 11 $ 11
===================== ========================
</TABLE>
See Accompanying Notes to Financial Statements
Page 5
<PAGE>
CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
----------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
------------------------------
(unaudited)
(1) DESCRIPTION OF BUSINESS
Credit Suisse First Boston Mortgage Securities Corp. (the "Company"),
is a wholly owned subsidiary of Credit Suisse Management Corporation
("FBSC"), which is a wholly owned subsidiary of Credit Suisse First
Boston, Inc., a privately owned holding company.
On 9/28/99 and 10/13/99 the company filed amendments 4 and 5 to
increase the shelf amount by $11.0 billion and $1.25 billion,
respectively.
The foregoing financial statements are unaudited; however, in the
opinion of management, all adjustments (comprising only normal
recurring accruals) necessary for a fair presentation of the financial
statements have been included. A summary of the significant accounting
policies is set forth in Note 2 to the Company's December 31, 1998
Financial Statements contained in the Company's 1998 Form 10-K.
Page 6
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
-----------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
The principal activities of the Company include (i) issuing and selling
collateralized mortgage obligations (the "Bonds"), (ii) issuing and
selling Strips of Participation Certificates ("Splits"), (iii) issuing
and selling Conduit Mortgage Pass-Through Certificates ("Conduits"),
(iv) issuing and selling Commercial/Multifamily Mortgage Pass-Through
Certificates ("Multifamily") and (v) issuing and selling Home Equity
Loan Pass-Through Certificates ("Home Equity").
RESULTS OF OPERATIONS (in thousands)
------------------------------------
The Company recorded no gains or (losses) on the sale of beneficial
interests in trusts for the nine months ended September 30, 1999.
On 11/3/99 and 11/10/99, the Company issued $266,497 and $1,187,129,
respectively, in Commercial/Multifamily Mortgage Pass-Through
Certificates.
Net unrealized gains and losses on mortgage pass-through certificates
are reflected in principal transactions. Realized gains and losses on
the sale of mortgage pass-through certificates are also reflected in
principal transactions. For the nine months ended September 30, 1999
and September 30, 1998, principal transactions of $5 and $1,481,
respectively, are included in the Company's Statement of Operations.
Management fees, professional fees and other administrative expenses
are paid by FBSC on behalf of the Company.
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
The Company utilizes FBSC to borrow funds and facilitate the settlement
of all transactions through intercompany accounts as required with
FBSC.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
----------------------------------------------------------
Market risk represents the risk of changes in value of a financial
instrument caused by fluctuations in interest rates and prices. The
Company monitors market risks in accordance with established policies
and may enter into various derivatives and U.S. Government securities
transactions, as it deems necessary.
Page 7
<PAGE>
PART II - OTHER INFORMATION,
----------------------------
Item 1. LEGAL PROCEEDINGS
-----------------
None.
Item 2. CHANGES IN SECURITIES
---------------------
Not applicable
Item 3. DEFAULTS UPON SENIOR SECURITIES
--------------------------------
Not applicable.
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:
Restated Certificate of Incorporation of the Company
(incorporated by reference to Exhibit 3.1 to Registration
Statement No. 33-47579).
By-Laws of the Company (incorporated by reference to
Exhibit 3.2 to Registration Statement No. 33-47579).
Form of Indenture (incorporated by reference to Exhibit
4 to Registration Statement No. 33-11924).
Form of Standard Terms and Provisions of Pooling and
Servicing Mortgage Loans/Mortgage Certificates
(incorporated by reference to Exhibit 4.1 to
Registration Statement No. 33-47579).
Item 6. EXHIBITS AND REPORTS ON FORM 8-K (CONTINUED)
(b) REPORTS ON FORM 8-K:
<TABLE>
<CAPTION>
ITEMS REPORTED FINANCIAL STATEMENTS FILED DATE OF FILING
-------------- -------------------------- --------------
<S> <C> <C> <C>
Item 5. Financial Statements, Pro Forma
Financial Information and Exhibits Not Applicable July 8, 1999
</TABLE>
Page 8
<PAGE>
Page 9
SIGNATURE
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.
Credit Suisse First Boston Mortgage
Securities Corp.
By:
Thomas M. Zingalli
Controller and Principal
Accounting Officer
(Duly Authorized Officer and
Principal Accounting Officer)
Dated: November 8, 1999
<PAGE>
Page 10
SIGNATURE
---------
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.
Credit Suisse First Boston Mortgage
Securities Corp.
By: THOMAS M. ZINGALLI
-------------------
Thomas M. Zingalli
Controller and Principal
Accounting Officer
(Duly Authorized Officer and
Principal Accounting Officer)
Dated: November 8, 1999
<PAGE>
Page 11
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
<S> <C> <C>
Exhibit
NUMBER DESCRIPTION OF EXHIBIT PAGE
- ------- ---------------------- -----
3.1 Restated Certificates of Incorporation of the Company *
3.2 By-Laws of the Company *
4 Form of Indenture **
4.1 Form of Standard Terms and Provisions of Pooling and Servicing
Mortgage Loans/Mortgage Certificates. *
</TABLE>
* Incorporated by reference to the same Exhibits in Registration Statement
No. 33-47579 on Form S-11 filed with the Securities and Exchange
Commission.
** Incorporated by reference to the same Exhibits in Registration Statement
No. 33-11924 on Form S-11 filed with the Securities and Exchange
Commission.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-30-1999
<CASH> 11
<SECURITIES> 0
<RECEIVABLES> 734
<ALLOWANCES> 0
<INVENTORY> 604
<CURRENT-ASSETS> 1,364
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 1,364
<CURRENT-LIABILITIES> 47
<BONDS> 0
1
0
<COMMON> 0
<OTHER-SE> 1,316
<TOTAL-LIABILITY-AND-EQUITY> 1,364
<SALES> 0
<TOTAL-REVENUES> 45
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 9
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 36
<INCOME-TAX> 13
<INCOME-CONTINUING> 23
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 23
<EPS-BASIC> 0
<EPS-DILUTED> 0
</TABLE>
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