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 June 30, 1999
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)
(714) 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
June 30, 1999
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 97% of the original $100.00 cost per
limited Partnership unit to a value of $3.45 per Partnership unit outstanding.
This is due to losses experienced over the past several years.
Results of Operations
During 1998, the majority owned partnership sold 35% of its primary asset,
a commercial property. A gain of approximately $200,000 resulted. Due to
this, book value per Partnership unit outstanding increased to $3.45; a 52%
increase in value from 1997. Management is of the opinion losses will
continue. 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, 1998 June 30,1999
Cash $ 204,047 $ 136,649
Loans receivable (Note 1) 58,118 32,149
Accounts receivable (Note 2) 0 0
Other real estate owned (Note 3) 1,178,780 1,161,876
Other assets 122,709 162,928
Total Assets $1,563,654 1,493,602
LIABILITIES & PARTNER'S EQUITY
Liabilities
Accounts payable 160,829 164,866
Notes payable (Note 4) 1,207,751 1,198,712
Total liabilities 1,368,580 1,363,578
Minority interest (165,350) (170,205)
Partner's equity 360,424 300,229
Total liabilities & partner's equity $1,563,654 1,493,602
Book value per limited partner unit
outstanding $ 4.14 $ 3.45
CONSOLIDATED INCOME STATEMENTS
For the Six Months Ended
6/30/98 6/30/98 6/30/99 6/30/99
Three Months Six Months Three Months Six Months
REVENUES:
Interest:
Loans 6,179 8,321 0 2,908
Investments 137 492 2,440 7,440
Total interest 6,316 8,813 2,440 10,348
Net partnership income (loss) (15,296) 367 (5,473) (3,184)
Other income 18,982 19,057 100 500
Total income 10,002 28,237 (2,933) 7,664
COSTS & EXPENSES:
Costs of loans 4,396 5,275 0 693
General & administrative costs 30,312 48,450 17,490 67,166
Total costs & expenses 34,708 53,725 17,490 67,859
NET LOSS (24,706) (25,288) (20,423) (60,195)
Net loss per partnership unit (.28) (.29) (.24) (.46)
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, 1997 $ (328,498) $ 567,298 $238,800
Allocation of net loss 6,081 115,543 121,624
Balance, December 31, 1998 (322,417) 682,841 360,424
Allocation of net loss (3,010) (57,185) (60,195)
Balance, June 30, 1999 $ (325,427) $ 625,656 $ 300,229
CONSOLIDATED STATEMENTS OF CASH FLOW
For the Six Months Ended
CASH FLOWS FROM OPERATING ACTIVITIES: 6/30/98 6/30/99
Net (loss) $ (25,488) $ (60,195)
Adjustments to reconcile net income to cash
provided by operating activities:
(Decrease) increase in accounts payable 4,521 4,037
(Increase) in accounts receivable 0 0
(Decrease) increase in due to general partner 0 0
(Decrease) increase in minority interest 559 (4,855)
(Increase) decrease in other liabilities 0 0
Decrease (increase) in other assets (115,915) (40,219)
NET CASH PROVIDED (USED) BY OPERATING ACTIVITI (136,323) (101,232)
CASH FLOW FROM INVESTING ACTIVITIES:
Net change in loans receivable 31,362 25,969
Net change in other real estate owned 29,639 16,904
NET CASH PROVIDED (USED) BY FINANCING ACTIVITI 61,001 42,873
CASH FLOWS FROM FINANCING Activities
Increase(Decrease) in notes payable (7,364) (9,039)
NET CASH PROVIDED (USED) BY FINANCING ACTIVITI (7,364) (9,039)
NET INCREASE(DECREASE) IN CASH (82,686) (67,398)
CASH, Beginning of period 129,033 204,047
CASH, End of Period $ 46,347 $ 136,649
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 June 30, 1999
Assets:
Cash and other assets 56,087
Real estate 1,161,876
Total assets $1,217,963
Liabilities and Partner's Equity:
Accounts payable 30,384
Notes payable 1,186,747
Due to affiliates (139,007)
Partner's equity 139,839
Total liabilities & partner's equity $1,217,963
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.
