UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------------------
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
-----
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED APRIL 30, 1997
OR
----- TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from _____ to _____.
Commission File Number: 0-18076
PAINEWEBBER INSURED MORTGAGE PARTNERS 1-B, L.P.
(Exact name of registrant as specified in its charter)
Delaware 04-3038480
-------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
265 Franklin Street, Boston, Massachusetts 02110
- ------------------------------------------ -----
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (617) 439-8118
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_____ .
---
<PAGE>
PAINEWEBBER INSURED MORTGAGE PARTNERS 1-B,L.P.
BALANCE SHEETS
April 30, 1997 and July 31, 1996 (Unaudited
(In thousands)
ASSETS
April 30 July 31
-------- -------
Investments in Debt Securities:
Mortgage-Backed Securities
available for sale $ 5,603 $ 6,280
Participating Insured Mortgage
Loans available for sale 18,387 18,539
-------- --------
23,990 24,819
Cash and cash equivalents 1,061 3,637
Interest and other receivables 168 172
Deferred expenses, net 552 615
-------- --------
$ 25,771 $ 29,243
======== ========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable - affiliates $ 29 $ 30
Accounts payable and accrued expenses 35 51
Partners' capital 25,707 29,162
-------- --------
$ 25,771 $ 29,243
======== ========
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the nine months ended April 30, 1997 and 1996 (Unaudited)
(In thousands)
Corporate
Limited
General Partner and
Partner Unitholders
------- -----------
Balance at July 31, 1995 $ 1 $ 30,244
Net unrealized holding losses
on debt securities - (48)
Cash distributions (14) (2,110)
Net income 14 1,327
------ --------
Balance at April 30, 1996 $ 1 $ 29,413
====== ========
Balance at July 31, 1996 $ 1 $ 29,161
Net unrealized holding losses
on debt securities - (81)
Cash distributions (14) (4,652)
Net income 13 1,279
------ --------
Balance at April 30, 1997 $ 0 $ 25,707
====== ========
See accompanying notes.
<PAGE>
PAINEWEBBER INSURED MORTGAGE PARTNERS 1-B, L.P.
STATEMENTS OF INCOME
For the three and nine months ended April 30, 1997 and 1996 (Unaudited)
(In thousands, except per Unit data)
Three Months Ended Nine Months Ended
April 30, April 30,
------------------ -------------------
1997 1996 1997 1996
---- ---- ---- ----
Revenues:
Interest income - Investments $ 497 $ 521 $1,506 $1,580
Interest income - Money Market 31 45 131 144
------ ------ ------ ------
528 566 1,637 1,724
Expenses:
Management fees 53 55 161 168
General and administrative 36 52 121 152
Amortization expense 21 21 63 63
------ ------ ------ ------
110 128 345 383
------ ------ ------ ------
Net income $ 418 $ 438 $1,292 $1,341
====== ====== ====== ======
Net income per Unit of
Depositary Receipt $0.75 $ 0.79 $ 2.32 $ 2.41
===== ====== ====== ======
Cash distributions per Unit
of Depositary Receipt $5.94 $ 1.26 $ 8.43 $ 3.82
===== ====== ====== ======
The above net income and cash distributions per Unit of Depositary Receipt are
based upon the 551,604 Units outstanding for each period.
See accompanying notes.
<PAGE>
PAINEWEBBER INSURED MORTGAGE PARTNERS 1-B, L.P.
STATEMENTS OF CASH FLOWS
For the nine months ended April 30, 1997 and 1996 (Unaudited)
Increase (Decrease) in Cash and Cash Equivalents
(In thousands)
1997 1996
---- ----
Cash flows from operating activities:
Net income $ 1,292 $ 1,341
Adjustments to reconcile net income to
net cash provided by operating activities:
Amortization expense 63 63
Amortization of discount/premium on debt
securities 13 13
Changes in assets and liabilities:
Interest and other receivables 4 8
Accounts payable - affiliates (1) -
Accounts payable and accrued expenses (16) (4)
------- --------
Total adjustments 63 80
------- --------
Net cash provided by operating activities 1,355 1,421
------- --------
Cash flows from investing activities:
Principal collections on Mortgage-Backed Securities 678 885
Principal collections on Participating Insured
Mortgage Loans 57 52
------- --------
Net cash provided by investing activities 735 937
------- --------
Cash flows from financing activities:
Distributions to Unitholders and partners (4,666) (2,124)
------- --------
Net (decrease) increase in cash and cash equivalents (2,576) 234
Cash and cash equivalents, beginning of period 3,637 3,274
-------- --------
Cash and cash equivalents, end of period $ 1,061 $ 3,508
======= =======
See accompanying notes.
<PAGE>
PAINEWEBBER INSURED MORTGAGE PARTNERS 1-B, L.P.
Notes to Financial Statements
(Unaudited)
1. Organization
The accompanying financial statements, footnotes and discussions
should be read in conjunction with the financial statements and footnotes
contained in the Partnership's Annual Report for the year ended July 31,
1996. In the opinion of management, the accompanying financial statements,
which have not been audited, reflect all adjustments necessary to present
fairly the results for the interim period. The accounting adjustments
included in the accompanying interim financial statements are of a normal
recurring nature.
The accompanying financial statements have been prepared on the accrual
basis of accounting in accordance with generally accepted accounting
principles which require management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosures of
contingent assets and liabilities as of April 30, 1997 and July 31, 1996
and revenues and expenses for the three and nine months ended April 30,
1997 and 1996. Actual results could differ from the estimates and
assumptions used.
2. Mortgage-Backed Securities
At April 30, 1997 and July 31, 1996, the Partnership held
non-participating mortgage-backed securities ("MBS") backed by
single-family or multi-family mortgage loans issued or originated in
connection with the housing programs of the Government National Mortgage
Association ("GNMA"), and guaranteed by GNMA, as follows (in thousands):
<TABLE>
<CAPTION>
April 30, 1997 July 31, 1996
------------------------------- --------------------------------------
Estimated Estimated
Market Face Amortized Market Face Amortized
Description Value Value Cost Value Value Cost
------------ ----- ----- ---- ----- ----- ----
<S> <C> <C> <C> <C> <C> <C>
9.5% GNMA Pool $ 1,943 $ 1,807 $ 1,794 $ 2,228 $ 2,071 $ 2,055
9.0% GNMA Pool 291 281 291 362 347 358
8.0% GNMA Pool 3,071 3,009 3,142 3,363 3,326 3,468
7.5% GNMA Pool 298 299 296 327 330 328
------- -------- --------- ------- ------- -------
$ 5,603 $ 5,396 $ 5,523 $ 6,280 $ 6,074 $ 6,209
======= ======= ======= ======= ======= =======
</TABLE>
As discussed further in the Annual Report, the Partnership's
investments in MBS are carried at fair value as of April 30, 1997 and July
31, 1996. Investments in MBS are valued based on quoted market prices. The
amortized cost of the MBS represents the face value of the securities net
of unamortized premium or discount. Investments in non-participating MBS
were limited to no more than 30% of the original net offering proceeds per
the terms of the Partnership's offering prospectus.
The 9.5% MBS, which were purchased at a discount on December 14,
1988, carry a coupon interest rate of 9.5% per annum and include loans
with scheduled maturities between June 2009 and December 2009. The 9.0%
MBS, which were purchased at a premium on November 16, 1989, carry a
coupon interest rate of 9.0% per annum and include loans with scheduled
maturities between June 2001 and September 2002. The 8.0% MBS, which were
purchased at a premium on July 30, 1992, carry a coupon interest rate of
8.0% per annum and include loans with scheduled maturities in June 2022.
The 7.5% MBS, which were purchased at a discount on October 30, 1992,
carry a coupon interest rate of 7.50% per annum and include loans with
scheduled maturities in March 2022. The loans included in these GNMA pool
programs may be prepaid, without penalty, at any time.
<PAGE>
3. Investments in Participating Insured Mortgage Loans
Participating Insured Mortgage Loans secured by GNMA securities
outstanding at April 30, 1997 and July 31, 1996 are comprised of the
following (in thousands):
<TABLE>
<CAPTION>
April 30, 1997 July 31, 1996
-------------------------- -----------------------------
GNMA Estimated Estimated
Certificate Interest Market Amortized Market Amortized
Number Property Rate Value Cost Value Cost
------ -------- ---- ----- ---- ----- ----
<S> <C> <C> <C> <C> <C> <C>
279985 Quarter Mill 8.50% $ 7,390 $ 7,175 $ 7,441 $ 7,198
279119 Emerald Cove 8.75% 10,997 10,658 11,098 10,697
------- ------- ------- -------
$18,387 $17,833 $18,539 $17,895
======= ======= ======= =======
</TABLE>
As discussed further in the Annual Report, the Partnership's
investments in Participating Insured Mortgage Loans are carried at fair
value as of April 30, 1997 and July 31, 1996. Investments in Participating
Insured Mortgage Loans, for which quoted market prices are not available,
are valued by an independent pricing service which determines the
valuations based on the reported financial results of the underlying
properties and a comparison of recent market trades of securities with
similar characteristics.
Descriptions of the properties financed by the Partnership's loans
and the loan agreements themselves are summarized below:
Quarter Mill Apartments
-----------------------
The Partnership acquired a Participating Insured Mortgage Loan
with respect to a 266-unit apartment complex known as Quarter Mill
Apartments located in Richmond, Virginia (the "Virginia Project").
Construction of the Virginia Project was completed in November of 1990.
Initial closing of this Participating Insured Mortgage loan took place on
August 2, 1989. The Project Owner is Amurcon Corporation. The Base
Component of this Participating Insured Mortgage Loan is coinsured by FHA
and represented by GNMA Securities with an initial face value of
$7,316,600, which GNMA Securities bore interest at the rate of 10.25%
during construction of the Virginia Project and 8.50% thereafter.
Effective May 1, 1991, the construction loan was converted to a permanent
loan with a principal balance of $6,525,000. On June 21, 1991 an
additional $791,600 was funded, completing the Partnership's investment of
$7,316,600. Scheduled principal repayments of $142,020 have been received
through April 30, 1997.
Emerald Cove Apartments
-----------------------
The Partnership acquired a Participating Insured Mortgage Loan
with respect to a 276-unit apartment complex known as Emerald Cove
Apartments in Charlotte, North Carolina (the "North Carolina Project").
Initial closing of this Participating Insured Mortgage Loan took place on
October 16, 1989. The Project Owners are Ronald Curry and Ralph Abercia.
The Base Component of this Participating Insured Mortgage Loan is
coinsured by FHA and represented by GNMA Securities with an initial face
value of $10,783,900 at closing, which GNMA Securities bore interest at
the rate of 10.25% during construction of the North Carolina Project and
8.75% thereafter. During fiscal 1992, the Partnership funded its remaining
commitment on the investment of approximately $1,184,000 and, effective
May 1, 1992, the investment was converted to a permanent loan with a
principal balance of $10,783,900. The Partnership paid a premium of
approximately $108,000 to the GNMA issuer to obtain the original loan
commitment due to the fact that the permanent loan interest rate was
higher than comparable market rates at the time of the initial closing.
The premium is included in the balance of the Participating Insured
Mortgage Loan on the accompanying balance sheets and is being amortized on
the straight-line method, which approximates the effective interest
method, over 15 years. Scheduled principal repayments of $184,774 have
been received through April 30, 1997.
<PAGE>
4. Related Party Transactions
Management fees earned by the General Partner and its affiliates for
services rendered in managing the business of the Partnership aggregated
$161,000 and $168,000 for the nine months ended April 30, 1997 and 1996,
respectively. Such management fees include an Asset Management Fee equal
to 0.75% per annum of the outstanding principal balance of the
Partnership's mortgage securities and additional asset management fees
equal to 2% of the Partnership's distributable cash, as defined. Of the
total management fees incurred for the nine months ended April 30, 1997
and 1996, $29,000 in each period represents additional asset management
fees paid to PWPI. Accounts payable - affiliates at April 30, 1997 and
July 31, 1996 consists of $29,000 and $30,000, respectively, of management
fees payable to the General Partner and its affiliates.
Included in general and administrative expenses for the nine months
ended April 30, 1997 and 1996 is $72,000 and $71,000, respectively,
representing reimbursements to an affiliate of the General Partner for
providing certain financial, accounting and investor communication
services to the Partnership.
Also included in general and administrative expenses for the
nine-month periods ended April 30, 1997 and 1996 is $4,000 and $9,000,
respectively, representing fees earned by an affiliate, Mitchell Hutchins
Institutional Investors, Inc., for managing the Partnership's cash assets.
<PAGE>
PAINEWEBBER INSURED MORTGAGE PARTNERS 1-B, L.P.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
- -------------------------------
The Partnership's investments are structured to provide safety of
principal. The Partnership's principal investments in both Participating Insured
Mortgage Loans and conventional mortgage-backed securities are 100% guaranteed
by GNMA in the event of defaults by the underlying property owners. Obligations
of GNMA are backed by the full faith and credit of the Federal government. The
Partnership does face potential market risk in the event that the Partnership,
as expected, liquidates its investments in Participating Insured Mortgage Loans
and non-participating mortgage-backed securities prior to the scheduled maturity
dates of such investments. Depending on the general level of market interest
rates at the time of the sale of any of the Partnership's mortgage security
investments, the market value of the investments may be higher or lower than the
outstanding principal balances. Nonetheless, since the Partnership is not
required to be liquidated prior to the scheduled maturity dates, management can
limit the exposure to market risk by attempting to time the liquidation of the
Partnership's investments to coincide with a period of favorable interest rates.
However, management is not prohibited from selling any security at a loss and
may do so if it is believed that such a sale would be in the best interests of
the Partnership. The market value of the Partnership's Participating Insured
Mortgage Loans is also affected by the value, if any, that is attributed to the
participation features of such loans. Such value is impacted by overall real
estate market conditions and by the specific performance of the properties
securing the Partnership's participation interests. The Partnership's
non-participating MBS have coupon interest rates ranging from 7.5% to 9.5%.
Based on current market interest rate levels, the aggregate market value of
these securities at the present time would be expected to be slightly above both
their aggregate face value and amortized cost, which includes any unamortized
discounts or premiums. As of April 30, 1997, the Partnership's Participating
Insured Mortgage Loans, which carry coupon interest rates of 8.5% and 8.75%, had
estimated market values slightly above their face values due to a variety of
factors, including the participation features. Increases in market interest
rates and/or deterioration in general real estate market conditions in the near
term could cause the aggregate market value of the Participating Insured
Mortgage Loans and the portfolio of MBS investments to fall below face value
and/or amortized cost. However, fluctuating market conditions will not result in
realized gains or losses unless the Partnership's investments are prepaid or
sold prior to maturity. Secondary market sales of the Partnership's investments
would likely only occur as part of a formal plan of liquidation for the
Partnership.
The Partnership is also subject to possible reinvestment risk to the
extent that its principal investments are prepaid prior to the Partnership's
expected liquidation period. Depending on the general level of market interest
rates at the time of such a prepayment, the Partnership or an individual
Unitholder might be unable to earn a comparable yield on a similar low-risk
investment upon the reinvestment of such funds. Over the past several years,
generally low market interest rates have prompted a high level of refinancing
activity, resulting in significant prepayments on the Partnership's
non-participating mortgage-backed securities. Such prepayments reduced the
Partnership's investment income and increased the outstanding balance of the
Partnership's cash reserves. Since it is unlikely that there will be a default
on either of the Partnership's two remaining multi-family participating loans,
and since the current rates of return available on non-participating
mortgage-backed security investments did not warrant reinvestment by the
Partnership, management concluded that it would be in the best interests of the
Unitholders to return the portion of the Partnership's cash reserves which
exceeded expected future requirements. Consequently, the Partnership distributed
approximately $2,600,000 of its excess reserves, or $47.13 per original $1,000
investment, in a special capital distribution made on March 14, 1997, in
addition to the regular quarterly distribution of $12.31 per original $1,000
investment paid on the same date for the quarter ended January 31, 1997.
Regular quarterly distributions are comprised of investment income and
return of capital which results from the scheduled amortization of mortgage
principal as well as principal prepayments from the non-participating GNMA
mortgage-backed securities. Such principal prepayments are unpredictable and
have been high during recent years, but have declined during fiscal 1997. Based
on this decline in the rate of principal prepayments and the expectation that
this decline will continue in the future, the Partnership has reduced the
regular quarterly distribution rate effective for the payment made on June 13,
1997 for the third quarter of fiscal 1997. The distribution rate has changed
from 8.25% per annum to 6.5%, of which approximately 5.5% is expected to
represent net investment income and 1% is expected to be a return of capital. If
the actual prepayment levels exceed anticipated levels during the next twelve
months, the Partnership is expected to make a Special Distribution of these
excess amounts in March 1998 and each subsequent March, if warranted by future
principal prepayment levels.
<PAGE>
The Partnership's two remaining Participating Insured Mortgage Loans are
secured by the Emerald Cove and Quarter Mill apartment complexes. The occupancy
level at Emerald Cove averaged 91% for the quarter ended April 30, 1997,
compared to 90% for the prior quarter and 96% for the same quarter a year ago.
The 1% increase in average occupancy over the prior quarter resulted from new
tenants attracted by the rental concessions currently being offered by the
property's leasing team on certain unit types. When compared to the same period
in the prior year, average occupancy has declined due to the competition from
several newly developed properties which have opened in this submarket during
fiscal 1997 and which have offered rental concessions in order to accelerate
their leasing progress. There continues to be a substantial amount of new
competition in the northeast section of the Charlotte market where Emerald Cove
is located. With over 1,000 additional apartment units under construction and an
additional 600 apartment units under proposal, the property's management and
leasing team anticipates that vacancy levels may increase in the short term. In
light of these competitive market conditions, there are no rental rate increases
currently planned for Emerald Cove, and it is likely that rental concessions
will remain necessary in order to maintain occupancy levels. Prepayment of the
Partnership's Emerald Cove Participating Insured Mortgage Loan was restricted
through March 1997 and then requires a prepayment penalty which declines
ratably, from 5% to 2%, over the next four years. There are no ongoing
prepayment discussions with the Emerald Cove owner at the present time.
Occupancy at the Quarter Mill Apartments during the quarter ended April
30, 1997 averaged 98%, unchanged from the prior quarter. Property operations
continue to generate small amounts of excess cash flow, a portion of which is
payable to the Partnership as Contingent Interest. During fiscal 1996, the
Partnership received approximately $46,000, representing its 30% share of the
surplus cash, as defined, generated by the Quarter Mill property for calendar
year 1995. Effective in fiscal 1996, the Quarter Mill Participating Insured
Mortgage Loan became open to prepayment with a specified prepayment penalty
which declines ratably, from 10% to 2%, over the next five years. To date, the
Quarter Mill owner has given no indication of an intent to prepay the
outstanding loan in the near term.
At April 30, 1997, the Partnership had cash and cash equivalents of
approximately $1,061,000. Such amounts will be utilized for the working capital
requirements of the Partnership and for distributions to the Unitholders. The
source of future liquidity and distributions to the Unitholders is expected to
be primarily through interest income and principal repayments from the
Partnership's mortgage securities, money-market interest income from invested
cash reserves, and to a lesser extent from contingent interest from
Participating Insured Mortgage Loans and net project residuals from the sale or
refinancing of the properties securing such investments.
Results of Operations
Three Months Ended April 30, 1997
- ---------------------------------
Net income decreased by $20,000 for the three months ended April 30,
1997, when compared to the same period in the prior year, due to a $38,000
decline in total revenues which was partially offset by a $18,000 reduction in
operating expenses. The decrease in revenues can be attributed primarily to the
$24,000 decline in interest income from Participating Insured Mortgage Loans and
non-participating MBS. This decline in interest income resulted from a reduction
in the average outstanding principal balances of such investments due to
scheduled principal amortization and prepayments on the MBS. A $14,000 decrease
in money market interest income in the current three-month period also
contributed to the decline in the Partnership's total revenues. The decrease in
money market interest income was mainly the result of a decline in the average
outstanding balance of the Partnership's invested cash reserves subsequent to
the $2.6 million special distribution of excess cash reserves made on March 14,
1997, as discussed further above. The decrease in operating expenses resulted
from a $16,000 decline in general and administrative expenses and a $2,000
reduction in management fees. General and administrative expenses decreased
primarily due to a reduction in certain required professional services, while
the decrease in management fees reflects the declining principal balances of the
Partnership's outstanding mortgage securities, upon which such fees are
primarily based. Nine Months Ended April 30, 1997
Nine Months Ended April 30, 1997
- ---------------------------------
Net income decreased by $49,000 for the nine months ended April 30,
1997, when compared to the same period in the prior year, due to an $87,000
decline in total revenues which was partially offset by a $38,000 reduction in
operating expenses. The decrease in revenues can be attributed mainly to a
$74,000 decline in interest income from Participating Insured Mortgage Loans and
non-participating MBS. This decline in interest income resulted from a reduction
in the average outstanding principal balances of such investments due to
scheduled principal amortization and prepayments on the MBS. A $13,000 decrease
in money market interest income in the current nine-month period also
contributed to the decline in the Partnership's total revenues. The decrease in
money market interest income was mainly the result of a decline in the average
outstanding balance of the Partnership's invested cash reserves subsequent to
the $2.6 million special distribution of excess cash reserves made on March 14,
1997, as discussed further above. The decrease in operating expenses resulted
from a $31,000 a reduction in general and administrative expenses and a $7,000
decline in management fees. General and administrative expenses decreased
primarily due to a reduction in certain required professional services, while
the decrease in management fees reflects the declining principal balances of the
Partnership's outstanding mortgage securities, upon which such fees are
primarily based.
<PAGE>
PART I
Other Information
Item 1. Legal Proceedings
As previously disclosed, the Partnership's General Partners were named as
defendants in a class action lawsuit against PaineWebber Incorporated
("PaineWebber") and a number of its affiliates relating to PaineWebber's sale of
70 direct investment offerings, including the offering of interests in the
various limited partnership investments and REIT stocks, including those offered
by the Partnership. In January 1996, PaineWebber signed a memorandum of
understanding with the plaintiffs in the class action outlining the terms under
which the parties have agreed to settle the case. Pursuant to that memorandum of
understanding, PaineWebber irrevocably deposited $125 million into an escrow
fund under the supervision of the United States District Court for the Southern
District of New York to be used to resolve the litigation in accordance with a
definitive settlement agreement and a plan of allocation. On July 17, 1996,
PaineWebber and the class plaintiffs submitted a definitive settlement agreement
which provides for the complete resolution of the class action litigation,
including releases in favor of the Partnership and PWPI, and the allocation of
the $125 million settlement fund among investors in the various partnerships and
REITs at issue in the case. As part of the settlement, PaineWebber also agreed
to provide class members with certain financial guarantees relating to some of
the partnerships and REITs. The details of the settlement are described in a
notice mailed directly to class members at the direction of the court. A final
hearing on the fairness of the proposed settlement was held in December 1996,
and in March 1997 the court announced its final approval of the settlement. As
part of the settlement agreement, PaineWebber has agreed not to seek
indemnification from the related partnerships and real estate investment trusts
at issue in the litigation (including the Partnership) for any amounts that it
is required to pay under the settlement. In addition, in December 1996
PaineWebber agreed to settle the Abbate and Barstad actions discussed further in
the Annual Report. Final releases and dismissals with regard to these actions
were received in April 1997. Based on the settlement agreements discussed above
covering all of the outstanding shareholder litigation, management does not
expect that the resolution of these matters will have a material impact on the
Partnership's financial statements, taken as a whole.
Item 2. through 5. NONE
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits: NONE
(b) Reports on Form 8-K:
No reports on Form 8-K have been filed by the registrant during the
quarter for which this report is filed.
<PAGE>
PAINEWEBBER INSURED MORTGAGE PARTNERS 1-B, L.P
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Partnership has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
PAINEWEBBER INSURED MORTGAGE PARTNERS 1-B, L.P.
By: FIRST INSURED MORTGAGE PARTNERS, INC.
Managing General Partner
Date: June 9, 1997 By: /s/ Walter V. Arnold
--------------------
Walter V. Arnold
Vice President and
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Partnership's audited financial statements for the quarter ended April 30, 1997
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUL-31-1997
<PERIOD-END> APR-30-1997
<CASH> 1,061
<SECURITIES> 5,603
<RECEIVABLES> 18,555
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,229
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 25,771
<CURRENT-LIABILITIES> 64
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 25,707
<TOTAL-LIABILITY-AND-EQUITY> 25,771
<SALES> 0
<TOTAL-REVENUES> 1,637
<CGS> 0
<TOTAL-COSTS> 345
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,292
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,292
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,292
<EPS-PRIMARY> 2.32
<EPS-DILUTED> 2.32
</TABLE>
