<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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, 1996.
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE AT OF 1934 FOR THE TRANSITION PERIOD FROM
TO .
Commission file number 33-36775
SUMMIT SECURITIES, INC.
(Exact name of registrant as specified in its charter)
IDAHO 82-0438135
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
W. 929 Sprague Avenue, Spokane, WA 99204
(Address of principal executive offices)(Zip Code)
(509)838-3111
(Registrant's telephone number, including area code)
(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 / /
Applicable only to issuers involved in bankruptcy proceedings during
the preceding five years: (Not Applicable)
Indicate by check mark whether the registrant has filed all documents
and reports required to be filed by Sections 12, 13 or 15(d) of the
Securities Exchange Act of 1934 subsequent to the distribution of
securities under a plan confirmed by a court.
Yes / / No / /
Applicable only to corporate issuers:
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
10,000 SHARES - Common at July 31, 1996.
<PAGE>
SUMMIT SECURITIES, INC.
Part I - Financial Information: Index
Item 1: Financial Statements
Condensed Consolidated Balance Sheets --
June 30, 1996 (unaudited)
and September 30, 1995
Condensed Consolidated Statements of Operations--
Three and Nine Months Ended June 30, 1996 and
1995 (Unaudited)
Condensed Consolidated Statements of Cash Flows
Nine Months Ended June 30, 1996 and
1995 (Unaudited)
Notes to Condensed Consolidated Financial Statements
Item 2: Management's Discussion and Analysis of Financial Condition
and Results of Operations
<PAGE>
PART I - FINANCIAL INFORMATION
SUMMIT SECURITIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, September 30,
1996 1995
(Unaudited)
<S> <C> <C>
ASSETS
Cash and Cash Equivalents $ 2,647,369 $ 2,979,362
Investments in Affiliated Company 4,522,425 3,022,425
Available-for-Sale Securities,
at Market 277,561
Held-to-Maturity Securities,
at Amortized Cost (Market
Value $7,597,094 and $8,071,465) 7,868,172 8,315,750
Real Estate Contracts and Mortgage
Notes and Other Receivables,
Net of Unrealized Discounts
and Allowance For Losses 86,809,207 77,013,121
Real Estate Held For Sale 1,079,163 836,291
Deferred Acquisition Costs 4,603,296 3,582,202
Other Assets, Net 1,057,492 597,421
---------- ----------
TOTAL ASSETS $ 108,864,685 $ 96,346,572
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Insurance Annuity Reserves $ 59,702,365 $ 49,559,589
Investment Certificates and Accrued
Interest 40,677,555 38,545,896
Debt Payable 40,280 104,636
Accounts Payable and Accrued Expenses 2,225,322 2,938,182
Accrued Income Taxes Due Parent 1,560,345 1,291,202
---------- -----------
TOTAL LIABILITIES 104,205,867 92,439,505
---------- -----------
STOCKHOLDERS' EQUITY:
Common Stock, $10 Par Value:
2,000,000 Shares Authorized:
10,000 Shares Issued and Outstanding 100,000 100,000
Preferred Stock, $10 Par Value:
10,000,000 Shares Authorized:
38,108 and 35,622 Shares Issued and
Outstanding (Liquidation Preference
$3,810,800 and $3,562,220,
respectively) 381,080 356,222
Additional Paid-In Capital 1,997,570 1,786,991
Retained Earnings 2,184,296 1,675,738
Net Unrealized Losses on Investments (4,128) (11,884)
---------- ----------
TOTAL STOCKHOLDERS' EQUITY 4,658,818 3,907,067
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 108,864,685 $ 96,346,572
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial
statements.
<PAGE>
SUMMIT SECURITIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
June 30, June 30,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
REVENUES:
Interest and Earned Discounts $ 2,509,330 $ 1,306,545 $ 6,827,443 $ 3,120,126
Insurance Premiums Earned 7,800 25,000 23,400 25,000
Realized Net Gains on Sales of
Investment Securities 583
Realized Net Gains on Sales of
Receivables 297,300 35,065 297,300 84,168
Real Estate Sales 102,000 325,500 729,000 837,000
Dividend Income 51,920 54,311 147,196 206,389
Fees, Commissions, Service and
Other Income 788,318 824,569 2,277,779 1,667,996
--------- --------- --------- ---------
TOTAL REVENUES 3,756,668 2,570,990 10,302,701 5,940,679
--------- --------- --------- ---------
EXPENSES:
Insurance Annuity Benefits 942,077 259,337 2,705,843 259,337
Interest 931,816 832,301 2,775,150 2,368,483
Cost of Real Estate Sold 101,283 324,829 722,484 828,087
Provision for Losses on Real
Estate Contracts and Real
Estate Held (3,268) 74,202 277,148 242,023
Salaries and Employee Benefits 383,173 322,145 1,231,002 550,917
Commissions to Agents 545,802 393,927 1,358,840 793,163
Other Operating and Underwriting
Expenses 444,899 237,652 1,229,518 454,095
Less Increase in Deferred Acquisition
Costs (211,006) (48,950) (894,525) (48,950)
--------- --------- --------- ---------
TOTAL EXPENSES 3,134,776 2,395,443 9,405,460 5,447,155
--------- --------- --------- ---------
Income Before Income Taxes 621,892 175,547 897,241 493,524
Provision for Income Taxes (127,003) (62,768) (150,985) (171,645)
--------- --------- --------- ---------
NET INCOME 494,889 112,779 746,256 321,879
Preferred Stock Dividends (87,824) (79,240) (237,698) (236,231)
--------- --------- --------- ---------
Income Applicable to Common
Shareholder $ 407,065 $ 33,539 $ 508,558 $ 85,648
========= ========= ========= =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
SUMMIT SECURITIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Nine Months Ended
June 30,
1996 1995
<S> <C> <C>
CASH PROVIDED BY OPERATING ACTIVITIES $ 1,073,159 $ 1,148,736
---------- ----------
INVESTING ACTIVITIES:
Purchase of Subsidiaries Net of Cash
Received (761,739) 1,406,873
Purchase of Investment in Affiliated
Company (1,500,000)
Purchase of Available-for-Sale
Securities (267,428)
Purchase of Held-to-Maturity
Investments (486,753)
Proceeds from Sale of Available-
for-Sale Securities 999,790
Proceeds from Maturities of Held-to-
Maturity Investments 500,000
Principal Payments on Real Estate
Contracts and Mortgage Notes
and Other Receivables 11,103,022 6,080,098
Purchase of Real Estate Contacts
And Mortgage Notes and Other
Receivables (27,273,340) (18,327,907)
Proceeds From Real Estate Sales 40,861 143,108
Additions to Real Estate Held (56,351) (114,910)
Proceeds from Sale of Receivables 7,008,862 12,130,431
---------- ----------
NET CASH USED IN INVESTING
ACTIVITIES (10,693,076) 1,317,693
---------- ----------
FINANCING ACTIVITIES:
Receipts from Annuity Products 12,000,652 1,609,678
Withdrawals of Annuity Products (4,584,388) (900,967)
Proceeds From Sale of Investment
Certificates 8,707,422 6,716,772
Repayment of Investment Certificates (6,321,526) (2,194,601)
Repayment to Banks and Others (90,843) (191,206)
Debt Issuance Costs (421,132) (458,130)
Issuance of Preferred Stock 235,437 331,790
Cash Dividends (237,698) (236,231)
---------- ----------
NET CASH PROVIDED BY FINANCING
ACTIVITIES 9,287,924 4,677,105
---------- ----------
NET INCREASE (DECREASE)IN CASH
AND CASH EQUIVALENTS (331,993) 7,143,534
CASH AND CASH EQUIVALENTS, BEGINNING
OF PERIOD 2,979,362 3,608,764
--------- ----------
CASH AND CASH EQUIVALENTS,
END OF PERIOD $ 2,647,369 $ 10,752,298
========== ==========
NON CASH INVESTING AND FINANCING
ACTIVITIES OF THE COMPANY:
Assumption of Other Debt Payable in
Conjunction With Purchase of Real
Estate Contracts and Mortgage Notes $ 26,823 $ 120,230
Real Estate Held for Sale and
Development Acquired Through
Foreclosure 1,150,717 875,909
Loans to Facilitate the Sale of
Real Estate 688,139 693,892
Assumption of Other Debt Payable in
Conjunction with Acquisition of
Real Estate Held for Sale 15,528
Increase In Assets and Liabilities
Associated with Purchase of
Subsidiaries:
Investments 493,695 9,401,577
Real Estate Contracts and Mortgage
Notes and Other Receivables 32,080,899
Real Estate Held for Sale 503,298
Deferred Acquisition Costs 2,620,571
Other Assets 268,044 199,711
Insurance Annuity Reserves 44,558,959
Accounts Payable and Other 1,653,970
</TABLE>
The accompanying notes are an integral part of these financial
statements.
<PAGE>
SUMMIT SECURITIES, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
1. In the opinion of the Company, the accompanying unaudited
condensed consolidated financial statements contain all
adjustments necessary to present fairly the financial position as
of June 30, 1996, the results of operations for the three and
nine months ended June 30, 1996 and 1995 and changes in cash
flows for the nine months ended June 30, 1996 and 1995. The
results of operations for the nine month period ended June 30,
1996 and 1995 are not necessarily indicative of the results to be
expected for the full year.
2. The principal amount of receivables as to which payments were in
arrears more than three months was $3,350,000 at June 30, 1996
and $2,675,000 at September 30, 1995.
3. Summit Securities, Inc. is a wholly-owned subsidiary of National
Summit Corp. The Company files consolidated federal income tax
returns with its parent. The Company is allocated a current and
deferred tax provision from National Summit Corp. as if the
Company filed a separate tax return.
4. Summit Securities, Inc. had no outstanding material legal
proceedings other than normal proceedings associated with
receivable foreclosures.
5. Certain amounts in the prior years' condensed financial statements
have been reclassified to conform with the current years'
presentation.
6. On January 31, 1995 the Company consummated an agreement with
Metropolitan Mortgage & Securities Co., Inc. (Metro), the
Company's former parent company, whereby it acquired Metropolitan
Investment Securities, Inc. (MIS) effective January 31, 1995, at
a purchase price of $288,950, which approximated the book value
of MIS at date of purchase. On May 31, 1995, the Company
consummated an agreement with Metropolitan, whereby it acquired
Old Standard Life Insurance company (OSL) effective May 31, 1995,
at a purchase price of $2,722,000, which approximated the current
book value of OSL at date of purchase, with future contingency
payments based on the earnings of OSL. The purchase price plus
estimated future contingency payments approximate the actuarial
appraised valuation of OSL. On December 28, 1995, the Company
consummated an agreement with ILA Financial Services, Inc.
whereby it acquired Arizona Life, an insurance company domiciled
in Arizona, at a purchase price of $1,234,031, which approximated
the book value of Arizona Life at date of purchase. Arizona Life
holds licenses to engage in insurance sales in seven states and
the purchase price included approximately $268,000 in value
assigned to these state licenses.
<PAGE>
Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Completed Transactions:
In May 1996, Summit and OSL participated as two of the four co-
sellers in a receivable securitization sponsored by Tryon Mortgage
Funding, Inc. Approximately $122.9 million of receivable collateral,
with $7.4 million from Summit and OSL, was sold in the securitization
with proceeds, after costs, of approximately $120.4 million, with
$7.3 million allocated to Summit and OSL. With an amortized cost
basis of approximately $7.0 million in the receivables sold in the
securitization, Summit and OSL recorded approximately $.3 million in
gains from their portion of the sale. Tryon Mortgage Funding, Inc.
sold in a public offering approximately $115.5 million in varying
classes of mortgage pass-through certificates. In addition to the
certificates sold to the general public, approximately $7.4 million
in support class certificates and residual class certificates were
returned to the various co-sellers of the collateral included in the
securitization. Summit and OSL received approximately $7.0 million,
after costs, from the public offering and also received approximately
$.3 million in support class and residual class certificates.
On January 31, 1995, Summit Securities, Inc. (Summit or the
Company) and Metropolitan Mortgage & Securities Co., Inc. (Metro)
completed a purchase/sale transaction whereby 100% of the outstanding
common stock of Metropolitan Investment Securities, Inc. (MIS) was
sold to Summit. The cash purchase/sale price was $288,950, the
approximate net book value of MIS at closing, MIS is a limited-
purpose broker dealer and the exclusive broker/dealer for the
securities sold by Summit and Metro. It is anticipated that this
sale will not materially effect the future business operations of
MIS. Additionally, by agreement, effective January 31, 1995, Metro
discontinued its property development division, which consisted of a
group of employees experienced in real estate development. On the
same date, Summit commenced the operation of a property development
subsidiary employing these same individuals who had previously been
employed by Metro. Summit Property Development Corporation, a 100%
owned subsidiary of Summit, has negotiated an agreement with Metro to
provide future property development services.
On May 31, 1995, Summit and Metro completed a purchase/sale
transaction whereby 100% of the outstanding common stock of Old
Standard Life Insurance Company (OSL) was sold to Summit. The cash
purchase/sale price was $2,722,000, the approximate net book value of
OSL at closing, with future contingency payments based on the
earnings of OSL. The purchase/sale price plus estimated future
contingency payments approximated the actuarial appraised valuation
of OSL. OSL is engaged in the business of acquiring receivables
using funds derived from the sale of annuities and funds derived from
receivable cash flows. The purchase of OSL increased total assets by
approximately $48.9 million while total liabilities increased by
approximately $46.2 million. Significant assets acquired included
cash and cash equivalents of $4.1 million, investments of $9.4
million, receivables of $32.1 million, real estate of $.5 million,
deferred acquisition costs of $2.6 million and other assets of $.2
million. Significant liabilities assumed included insurance annuity
reserves of $44.5 million and accounts payable and other liabilities
of $1.7 million.
On December 28, 1995, Summit and ILA Financial Services Inc.
(ILA) completed a purchase/sale transaction whereby 100% of the
outstanding common stock of Arizona Life (AZL), an insurance company
domiciled in Arizona, was sold to a wholly owned subsidiary of
Summit. The cash purchase/sale price was approximately $1,234,000,
which approximated the book value of AZL at date of purchase. AZL
holds licenses to engage in insurance sales in seven states and the
purchase/sale price included approximately $268,000 in value assigned
to these state licenses. AZL is anticipated to be in the business of
acquiring receivables using funds derived from the sale of annuities
and funds derived from receivable cash flows. At date of purchase,
AZL had no outstanding insurance business or other liabilities. The
addition of AZL had no affect on total assets or liabilities of
Summit.
Financial Condition and Liquidity:
At June 30, 1996, the Company had cash and cash equivalents of
approximately $2.6 million as compared to $3.0 million at March 31,
1996, $7.9 million at December 30, 1995 and $3.0 million at September
30, 1995. Management believes that cash, cash equivalents and
liquidity provided by other investments are adequate to meet planned
asset additions, required debt retirements or other business
requirements during the next twelve months. At June 30, 1996, the
Company's receivable portfolio totaled $86.8 million as compared to
$87.7 million at March 31, 1996, $76.1 million at December 31, 1995
and $77.0 million at September 30, 1995. Real estate held for sale,
acquired through receivable foreclosures, totaled $1,079,200 as
compared to $909,700 at March 31, 1996, $794,600 at December 31, 1995
and $836,300 at September 30, 1995. Total assets were $108.9 million
at June 30, 1996 as compared to $107.6 million at March 31, 1996,
$100.6 million at December 30, 1995 and $96.3 million at September
30, 1995.
At June 30, 1996, the Company had outstanding insurance annuity
reserve liabilities of $59.7 million as compared to $57.0 million at
March 31, 1996, $53.0 million at December 31, 1995 and $49.6 million
at September 30, 1995. The Company had outstanding investment
certificate liabilities of $40.7 million at June 30, 1996 as
compared to $40.3 million at March 31, 1996, $39.9 million at
December 31, 1995 and $38.5 million at September 30, 1995. Total
liabilities were $104.2 million at June 30, 1996 as compared to
$103.2 million at March 31, 1996, $96.6 million at December 31, 1995
and $92.4 million at September 30, 1995.
Sales of Investment Certificates and Preferred Stock generated
approximately $2.6 million net cash flow during the nine months ended
June 30, 1996, while sales of insurance annuity products generated
approximately $7.4 million net cash flow during the same period.
Sales and maturities of investments, along with sales and principal
payments on receivables added additional cash flow of approximately
$19.6 million during the nine month period ended June 30, 1996. The
cash flows from these sources along with cash of $1.1 million
provided by operating activities were used to invest approximately
$27.2 million in receivables, approximately $2.3 million in
securities investments and the net cash expended of approximately
$762,000 for the acquisition of AZL.
Results of Operations:
Net income was $746,000 on revenues of approximately $10.3
million for the nine months ended June 30, 1996. For the similar
period in the prior year, the Company reported net income of $322,000
on revenues of approximately $5.9 million. Current period revenues
as compared to the prior year's have increased significantly as the
result of the MIS, OSL and AZL acquisitions in 1995.
Net income for the comparative nine month periods has
significantly increased as result of improvements from (1) an
increased spread between interest sensitive income and interest
sensitive expense, due principally to the increased investment in the
receivable portfolio, (2) an increase in overall gains from the sale
of investments, receivables and real estate and (3) a reduced
effective income tax rate due primarily to the effects of the
dividend exclusion benefits and the small life insurance tax
benefits; which were only partially offset by (1) a reduction in
dividend income on its common stock and variable rate preferred stock
investments, (2) an increase in other operating expenses in excess of
the increase in other operating income items and (3) an increase in
the provision for loss on receivables and other real estate assets.
For the nine months ended June 30, 1996, the interest spread was
$1.4 million, while in the prior year's period the spread was
$517,000. The increase of $853,000 is the result of additional
investment in the receivable portfolio, primarily from the
acquisition of OSL, coupled with a slight decrease in the weighted
average interest rate on the outstanding Investment Certificates
issued by the Company and the lower cost of insurance annuity funds
generated by OSL.
During the nine months ended June 30, 1996, the Company realized
gains on the sale of investments of $600, gains on the sale of real
estate of $6,500 and gains on the sale of receivables of $297,300 for
a total of $304,400. In the prior year's period, the Company
realized gains of $8,900 on the sale of real estate and realized
gains of $84,200 on the sale of receivables for a total of $93,100.
The current year's gain on the sale of receivables is totally from
Summit's participation as a co-seller in a securitization sponsored
by Tryon Mortgage Funding, Inc. Approximately $49,100 of the prior
year's gain on receivables resulted from the sale of approximately
$5.3 million in receivables to Western United Life Assurance Company,
which is a subsidiary of Metro, Summit's former parent company. The
sale of financial instruments was priced at the current market value
at date of sale.
In the current year's period, the Company received approximately
$147,000 in dividends from its common and preferred stock investment
in Metro compared to approximately $206,000 in the prior year's
period. In the current year the Company has not received any common
dividends compared to approximately $35,000 in the prior year. The
Company acquired this investment in September 1994 through the
exchange of its own preferred stock for a similar preferred and
common stock investment in Metro.
Commencing January 31, 1995, with the purchase of MIS and the
creation of a property development subsidiary, the Company began to
generate significant fee revenues along with increased operating
expenses associated with these revenues. Additionally, commencing
May 28, 1995, with the purchase of OSL, and December 28, 1995, with
the purchase of AZL, the Company began to incur significant operating
expense relative to its insurance operations. During the nine months
ended June 30, 1996, the Company generated approximately $2.3 million
of fee revenues while incurring $2.9 million in other operating
expenses. In the prior year, with limited operations at MIS and the
property development subsidiary, only one month of operations at OSL
and before the acquisition of AZL, the Company realized $1,668,000 of
fee revenues offset by $1,749,000 of other operating expenses. This
increased net cost of approximately $565,000 is primarily the result
of costs associated with its insurance operations.
In conjunction with increased investments in its receivable
portfolio, along with the valuation of foreclosed real estate, the
Company expensed a provision for loss on receivables and real estate
assets of $277,000 in the current year's period as compared to
$242,000 in the prior year's period. At June 30, 1996, the Company's
carrying value for its receivable portfolio and its real estate held
for sale was approximately $87.9 million as compared to $60.7 million
at June 30, 1995.
New Accounting Rules:
In May 1993, Statement of Financial Accounting Standards No.114
(SFAS No.114) "Accounting by Creditors for Impairment of a Loan" was
issued. Additionally, in October 1994, SFAS No.118 "Accounting by
Creditors for Impairment of a Loan-Income Recognition and
Disclosures" (an amendment to SFAS No.114) was issued. SFAS No.114
(as amended by SFAS No.118) requires certain impaired loans be
measured based on the present value of expected cash flows discounted
at the loans' effective interest rate or the fair value of the
collateral. The Company was required to adopt the new standard by
October 1, 1995. The adoption of SFAS No.114 and SFAS No.118 had no
material effect on the consolidated financial statements.
In December 1991, SFAS No.107, "Disclosure about Fair Value of
Financial Instruments" was issued. SFAS No.107 requires disclosures
of fair value information about financial instruments, whether or not
recognized in the balance sheet, for which it is practicable to
estimate that value. SFAS No.107 is effective for financial
statements issued for fiscal years ending after December 31, 1995
(Summit's fiscal year ending September 30, 1996) for entities with
less than $150 million in total assets. This pronouncement does not
change any requirements for recognition, measurement or
classification of financial instruments in Summit's financial
statements.
The Company's subsidiary, OSL, adopted the provisions of SFAS
No.115, "Accounting for Certain Investments in Debt and Equity
Securities" on December 31, 1993. The effect of applying this new
standard was to decrease stockholders' equity by $59,300, which is
net of a $30,600 income tax effect. At June 30, 1996, the Company
had net unrealized losses on investments of $4,100. This amount is
reported as a reduction in stockholders' equity. Additionally, under
guidance issued by the Financial Accounting Standards Board for the
implementation of SFAS No.115, the Company transferred approximately
$1.0 million in Held-to-Maturity investments to Available-for-Sale
investments during the three month period ending December 31, 1995.
These investments were sold during that period after the designated
transfer date.
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
There are no material legal proceedings or actions pending or
threatened against Summit Securities, Inc., or to which its property
is subject.
Item 2. Changes in Securities
N/A
Item 3. Defaults Upon Senior Securities
N/A
Item 4. Submission of Matters to a Vote of Security Holders
N/A
Item 5. Other Information
N/A
Item 6. Exhibits and Reports on Form 8-K
N/A
<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.
SUMMIT SECURITIES, INC.
(Registrant)
/S/TOM TURNER
Date: August 12, 1996 ____________________________________
Tom Turner
President/Director
/S/ PHILIP SANDIFUR
Date: August 12, 1996
Philip Sandifur
Vice President/Director
/S/ GREG GORDON
Date: August 12, 1996
Greg Gordon
Secretary/Treasurer/Director
/S/ STEVE CROOKS
Date: August 12, 1996
Steve Crooks
Principal Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> JUN-30-1996
<CASH> 2,647
<SECURITIES> 12,668
<RECEIVABLES> 87,568
<ALLOWANCES> 759
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 108,865
<CURRENT-LIABILITIES> 0
<BONDS> 40,718
<COMMON> 100
0
381
<OTHER-SE> 4,178
<TOTAL-LIABILITY-AND-EQUITY> 108,865
<SALES> 0
<TOTAL-REVENUES> 10,303
<CGS> 0
<TOTAL-COSTS> 6,353
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 277
<INTEREST-EXPENSE> 2,775
<INCOME-PRETAX> 897
<INCOME-TAX> 151
<INCOME-CONTINUING> 746
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 746
<EPS-PRIMARY> 50.86
<EPS-DILUTED> 50.86
</TABLE>
