FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
For the quarterly period ended December 31, 1997
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 33-36775
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.)
929 WEST SPRAGUE AVENUE, SPOKANE, WASHINGTON 99201
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (509)838-3111
Former name, former address and former fiscal year, if changed since last
report: N/A.
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: N/A.
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 / / N/A.
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.
Common: 10,000 shares at January 31, 1998.
SUMMIT SECURITIES, INC.
INDEX
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Condensed Consolidated Balance Sheets
As of December 31, 1997 and September 30, 1997 (unaudited)
Condensed Consolidated Statements of Income
Three Months Ended December 31, 1997 and 1996 (unaudited)
Condensed Consolidated Statements of Cash Flows
Three Months Ended December 31, 1997 and 1996 (unaudited)
Notes to Condensed Consolidated Financial Statements
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
SUMMIT SECURITIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<TABLE>
<CAPTION>
December 31, September 30,
1997 1997
______________ ______________
<S> <C> <C>
ASSETS
Cash and cash equivalents $ 9,654,102 $ 8,461,101
Investments in affiliated company 4,522,425 4,522,425
Trading securities, at market 3,485,628 1,743,836
Available-for-sale securities, at
market 5,831,796 5,959,470
Held-to-maturity securities, at
amortized cost (market value:
$7,221,579 and $7,206,543) 7,412,729 7,403,983
Real estate contracts and mortgage
notes and other receivables, net
of unrealized discounts and
allowances for losses 126,024,616 124,211,930
Real estate held for sale 2,344,156 2,819,845
Deferred acquisition costs, net 7,693,574 7,634,699
Other assets, net 3,187,460 3,596,781
______________ ______________
TOTAL ASSETS $170,156,486 $166,354,070
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Annuity reserves $107,523,344 $105,339,688
Investment certificates and accrued
interest 51,080,589 50,406,991
Debt payable 217,254 200,992
Accounts payable and accrued
expenses 1,370,638 1,302,945
Deferred income taxes 1,532,330 1,346,811
______________ ______________
TOTAL LIABILITIES 161,724,155 158,597,427
______________ ______________
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,
55,326 and 53,817 shares issued
and outstanding (liquidation
preference $5,532,560 and
$5,381,690, respectively) 553,256 538,169
Additional paid-in capital 3,454,721 3,326,007
Retained earnings 4,279,181 3,741,613
Net unrealized gains (losses) on
investments, net of income taxes 45,173 50,854
______________ ______________
TOTAL STOCKHOLDERS' EQUITY 8,432,331 7,756,643
______________ ______________
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $170,156,486 $166,354,070
============== ==============
</TABLE>
The accompanying notes are an integral part of the condensed
consolidated financial statements.
SUMMIT SECURITIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
December 31,
1997 1996
____________ ____________
<S> <C> <C>
REVENUES
Interest and earned discounts $ 3,983,119 $ 2,742,088
Annuity fees and charges 39,787 12,000
Realized investment gains 188,442 --
Realized net gains on sales of
receivables 626,164 317,219
Real estate sales 1,465,728 419,300
Dividend income 67,738 51,833
Fees, commissions, service and other
income 1,068,775 665,243
____________ ____________
TOTAL REVENUES 7,439,753 4,207,683
____________ ____________
EXPENSES
Annuity benefits 1,689,865 1,015,397
Interest 1,166,370 1,035,862
Cost of real estate sold 1,638,565 418,018
Provision for losses on real estate
contracts and real estate held 399,786 229,526
Salaries and employee benefits 509,397 433,409
Commissions to agents 729,430 358,511
Other operating and underwriting
expenses 561,740 514,182
Less increase in deferred
acquisition costs (115,484) (259,503)
____________ ____________
TOTAL EXPENSES 6,579,669 3,745,402
____________ ____________
Income before income taxes 860,084 462,281
Provision for income taxes (200,039) (68,860)
____________ ____________
NET INCOME 660,045 393,421
Preferred stock dividends (122,477) (103,186)
____________ ____________
Income applicable to common stockholders $ 537,568 $ 290,235
============ ============
Basic and diluted income per share
applicable to common shareholder $ 53.76 $ 29.02
Weighted average number of shares of common 10,000 10,000
stock outstanding
</TABLE>
The accompanying notes are an integral part of the condensed
consolidated financial statements.
SUMMIT SECURITIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended December 31,
1997 1996
______________ ______________
<S> <C> <C>
CASH PROVIDED BY
OPERATING ACTIVITIES $ 1,239,713 $ 2,728,864
______________ ______________
Cash flows from investing activities:
Proceeds from sales of available-for-
sale investments 141,412 --
Purchase of available-for-sale
investments (1,167,568)
Proceeds from maturities of held-to-
maturity investments 500,000
Purchase of held-to-maturity
investments (995,469)
Principal payments on real estate
contracts and mortgage notes and
other receivables 6,893,644 2,056,484
Purchase of real estate contracts
and mortgage notes and other
receivables (17,300,867) (10,152,412)
Proceeds from real estate sales 766,299 214,537
Additions to real estate held for sale (886,723) (1,270,616)
Proceeds from sale of receivables 9,463,153 11,739,777
______________ ______________
NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES (923,082) 924,733
______________ ______________
CASH FLOWS FROM FINANCING ACTIVITIES
Receipts from annuity products 4,091,269 3,220,925
Withdrawals of annuity products (3,561,201) (2,074,646)
Proceeds from issuance of investment
certificates 1,925,930 3,273,047
Repayment of investment certificates (1,526,023) (1,340,450)
Repayment to banks and others (571) (3,805,426)
Debt issuance costs (74,358) (121,485)
Issuance of preferred stock 143,801 419,698
Cash dividends on preferred stock (122,477) (103,166)
______________ ______________
NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES 876,370 (531,503)
______________ ______________
Net increase in cash and cash equivalents 1,193,001 3,122,094
Cash and cash equivalents, beginning
of period 8,461,101 4,461,315
______________ ______________
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 9,654,102 $ 7,583,409
______________ ______________
============== ==============
NON CASH INVESTING AND FINANCING
ACTIVITIES OF COMPANY:
Assumption of other debt payable in
conjunction with purchase of real
estate contracts and mortgage notes 16,942 51,098
Real estate acquired through
foreclosure 385,920 484,577
Receivables originated to facilitate
the sale of real estate 699,429 204,763
</TABLE>
The accompanying notes are an integral part of the condensed
consolidated financial statements.
SUMMIT SECURITIES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED 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 December 31, 1997, the
results of operations for the three months ended December 31, 1997 and
1996 and changes in cash flows for the three months ended December 31,
1997 and 1996. The results of operations for the three month periods
ended December 31, 1997 and 1996 are not necessarily indicative of the
results to be expected for the full year. As provided for in
regulations promulgated by the Securities and Exchange Commission, all
financial statements included herein are unaudited; however, the
condensed consolidated balance sheet at September 30, 1997 has been
derived from the audited consolidated balance sheet. These financial
statements should be read in conjunction with the consolidated financial
statements including notes thereto included in the Company's fiscal 1997
Form 10-K.
2. The principal amount of receivables as to which payments were in arrears
more than three months was $4,638,000 at December 31, 1997 and
$4,586,000 at September 30, 1997.
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. In September 1997 and November 1996, Summit entered into securitization
transactions with its subsidiaries, and with Metropolitan Mortgage &
Securities Co., Inc. (Metropolitan), its former parent company, and
Metropolitan subsidiaries. In September 1997 and November 1996,
proceeds from the securitization transactions were approximately $8.3
million and $9.6 million and resulted in gains of approximately $465,000
and $298,000, respectively. The gains included approximately $58,000
and $146,000, respectively, associated with the estimated fair value of
the mortgage servicing rights retained on the pools. The servicing
rights associated with the securitization transactions were subsequently
sold to an affiliated entity at the Company's carrying value.
6. In December 1997, Summit sold $8.8 of receivables to Western Life
Assurance Company (Western United), a subsidiary of Metropolitan, for
$9.3 Million.
7. The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the dates of the
financial statements and the reported amounts of revenues and expenses
during the reporting periods. Actual results could differ from those
estimates.
8. In February 1997, Statement of Financial Accounting Standards No. 128
(SFAS 128), "Earnings per Share" was issued. SFAS 128 establishes
standards for computing and presenting earnings per share (EPS) and
simplifies the existing standards. This standard replaces the
presentation of primary EPS with a presentation of basic EPS. It also
requires the dual presentation of basic and diluted EPS on the face of
the income statement for all entities with complex capital structures
and requires a reconciliation of the numerator and denominator of the
basic EPS computation to the numerator and denominator of the diluted
EPS computation. SFAS 128 is effective for financial statements issued
for periods ending after December 15, 1997, including interim periods
and requires restatement of all prior-period EPS data presented.
Accordingly, the Company applied this new standard during the quarter
ended December 31, 1997 and all prior-period EPS data has been restated.
The application of this standard did not have a material effect on the
presentation of the Company's EPS disclosures.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
These discussions may contain some forward-looking statements. A
forward-looking statement may contain words such as "will continue to be,"
"will be," "continue to," "expect to," "anticipates that," "to be," or "can
impact." Management cautions that forward-looking statements are subject to
risks and uncertainties that could cause the Company's actual results to
differ materially from those projected in forward-looking statements.
Significant Transactions:
On January 31, 1995, the Company consummated an agreement with
Metropolitan Mortgage & Securities Co., Inc. (Metropolitan), the Company's
former parent company (and currently affiliated through common control),
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
(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. As of December 31, 1997, the Company has paid approximately
$250,000 contingent consideration to Metropolitan.
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 Insurance Company, (AZL), an insurance company domiciled
in Arizona, was sold to a wholly owned subsidiary of Summit. The cash
purchase price was approximately $1.2 million, which approximated the book
value of AZL at the date of purchase. AZL held licenses to engage in
insurance sales in seven states and the purchase price included approximately
$268,000 in value assigned to these state licenses. AZL is in the business of
acquiring receivables using funds derived from the sale of annuities and funds
derived from receivable cash flows. At the 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.
In September 1997 and November 1996, Summit entered into securitization
transactions with its subsidiaries, Metropolitan and Metropolitan's
subsidiaries. In September 1997 and November 1996, proceeds from the
securitization transactions were approximately $8.3 million and $9.6 million
and resulted in gains of approximately $465,000 and $298,000, respectively.
The gains included approximately $58,000 and $146,000, respectively,
associated with the estimated fair value of the mortgage servicing rights
retained on the pools. The servicing rights associated with the securitization
transactions were subsequently sold to an affiliated entity at the Company's
carrying value.
Western United Life Assurance Company (Western United), a company
affiliated through common control, entered into a reinsurance agreement with
OSL whereby Western United reinsured 75% of the risk on six different annuity
products through OSL. This agreement became effective January 23, 1997 and
continued through September 30, 1997. The amount of deferred annuity contracts
reinsured through OSL totaled approximately $28.1 million at December 31,
1997.
Financial Condition and Liquidity:
As of December 31, 1997, the Company had cash or cash equivalents of
approximately $9.7 million and liquid investments (trading or available-for-
sale securities) of $9.3 million compared to $8.5 million in cash and cash
equivalents and $7.7 million in liquid investments at September 30, 1997.
Management anticipates that cash generated from operations, and cash and 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 December 31, 1997, total cash
and investments, including held-to-maturity securities and investments in
affiliates, were $30.9 million compared to $28.1 million at September 30,
1997. During the three months ended December 31, 1997, funds generated by
operating activities totaled $1.2 million. Funds provided by financing
activities were $876,000, which included a $544,000 net cash inflow from the
sale of preferred stock and investment certificates, less repayments, and net
cash inflow from annuity products of $530,000 which were offset by payments of
preferred stock dividends of $122,000. Funds used in investing activities of
$923,000, which included $141,000 net cash inflow from investment maturities
and sales, $16.4 million net cash inflow from sales proceeds and collections
of receivables and $766,000 net cash inflow from real estate sales were used
to fund new receivable acquisitions of $17.3 million, and additions to real
estate held of $887,000.
The receivable portfolio totaled $126.0 million at December 31, 1997
compared to $124.2 million at September 30, 1997. During the three months
ended December 31, 1997, the change resulted from the acquisition of
receivables totaling $17.3 million plus an additional $700,000 in loans to
facilitate the sale of real estate being partially offset by sale proceeds and
collections of principal of $16.4 million and $386,000 in reductions due to
foreclosed receivables. Real estate held for sale totaled $2.3 million at
December 31, 1997, compared to $2.8 million at September 30, 1997.
Insurance annuity reserves totaled $107.5 million at December 31, 1997
as compared to $105.3 million at September 30, 1997. The increase of $2.2
million for the three months ended December 31, 1997 resulted from credited
earnings of $1.7 million, and a $500,000 net cash inflow as receipts from the
sales of annuity products of $4.1 million exceeded the withdrawals of $3.6
million. The Company had outstanding investment certificate liabilities of
$51.1 million at December 31, 1997, compared to $50.4 million at September 30,
1997. For the three months ended December 31, 1997, net cash inflow from
issuance less maturities of debentures was $400,000 plus an additional
$274,000 increase in credited interest held.
Total assets were $170.2 million at December 31, 1997 as compared to
$166.4 million at September 30, 1997. Total liabilities were $161.7 million at
December 31, 1997 compared to $158.6 million at September 30, 1997. Total
stockholders' equity was $8.4 million or 5.0% of total assets at December 31,
1997, as compared to $7.8 million or 4.7% of total assets at September 30,
1997.
Results of Operations:
Income available to common stockholders was $538,000 on revenues of
approximately $7.4 million for the three months ended December 31, 1997. For
the similar period in the prior year, the Company reported income available to
common stockholders of $290,000 on revenues of approximately $4.2 million.
Income for the comparative three month periods has 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) market value adjustments on trading securities,
(3) an increase in overall gains from the sale of investments, receivables and
real estate, and (4) an increase in fees, commissions and service revenues;
which were only partially offset by (1) an increase in other operating
expenses and (2) an increase in the provision for losses on receivables and
other real estate assets.
For the three months ended December 31, 1997, the net interest spread
was $1.2 million while in the prior year's period the spread was $700,000.
The increase of $500,000 is the result of additional investments in the
receivable portfolio coupled with a slight decrease in both the weighted
average interest rates on the outstanding Investment Certificates issued by
the Company and insurance annuity funds generated by OSL.
During the three months ended December 31, 1997, the Company realized
losses on the sale of real estate of $173,000 and gains on the sale of
receivables of $626,000. In the prior year's period, the Company realized
gains from the sales of real estate of $1,000 and gains from the sale of
receivables of $317,000. The current year's gain on the sale of receivables
is primarily from Summit's sale of $8.8 million of receivables to Western
United, while the prior year's gain was primarily from the sale of receivables
into a securitization sponsored by Metropolitan Asset Funding, Inc. In
December 1996, Summit purchased 733 weekly intervals in Pono Kai, an existing
timeshare development located on the island of Kauai in Hawaii. Sales
operations commenced in September 1997. During the three months ended December
31, 1997, total sales were $750,000 while cost of sales totaled $963,000. The
current period loss of $213,000 is primarily the result of start up costs
related to the timeshare interval sales program.
During the three months ended December 31, 1997, the Company received
approximately $68,000 in dividends from its investments in companies
affiliated through common control, compared to approximately $52,000 in the
prior year's period. In the current year's period, approximately $49,000 were
dividends on its preferred stock investment in Metropolitan, its former
parent, and $19,000 were dividends on its common stock investment in Consumers
Group Holding Company, Inc., a subsidiary of Metropolitan. In the prior year,
all dividends were from its preferred stock investment in Metropolitan.
During the three months ended December 31, 1997, the Company generated
approximately $1.1 million of fee revenues while incurring $1.7 million in
salaries, commissions and other operating expenses less increases in deferred
acquisition costs. In the prior year, the Company realized $700,000 of fee
revenues offset by $1.0 million of other costs. This increased net cost of
approximately $300,000, is primarily the result of costs associated with its
insurance operations, which were only partially offset by an increase in fees
generated by its property development subsidiary.
In conjunction with increased investments in its receivable portfolio,
along with the valuation of foreclosed real estate, the Company provided for
loss on receivables and real estate assets of $400,000 in the current year's
period as compared to $230,000 in the prior year's period.
New Accounting Rules:
In June 1997, the Financial Accounting Standards Board (FASB) issued
SFAS No. 130, "Comprehensive Income" (SFAS No. 130). SFAS No. 130 becomes
effective in 1998 and requires reclassification of earlier financial
statements for comparative purposes. SFAS No. 130 requires that amounts of
certain items, including foreign currency translation adjustments and gains
and losses on certain securities, be included in comprehensive income in the
financial statements. SFAS No. 130 does not require a specific format for the
financial statement in which comprehensive income is reported, but does
require that an amount representing total comprehensive income be reported in
that statement. Management has not yet determined the effects, if any, of
SFAS No. 130 on the consolidated financial statements.
Also, in June 1997, the FASB issued SFAS No. 131, "Disclosures about
Segments for an Enterprise and Related Information" (SFAS No. 131). This
Statement will change the way public companies report information about
segments of their business in their annual financial statements and requires
them to report selected segment information in their quarterly reports issued
to shareholders. It also requires entity-wide disclosures about the products
and services an entity provides, the material countries in which it holds
assets and reports revenues, and its major customers. The Statement is
effective for fiscal years beginning after December 15, 1997. Management has
not yet determined the effect, if any, of SFAS No. 131 on the consolidated
financial statements.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not currently applicable. Pursuant to General Instructions to Item 305,
disclosures are applicable to the registrant in filings with the commission
that include financial statements for fiscal years ended after June 15, 1998.
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 & USE OF PROCEEDS
Recent Sales of Unregistered Securities: On October 15, 1996, Summit
issued to one accredited investor who is also an MIS Registered
Representative, in a private offering exempt from registration pursuant to the
Securities Act of 1933, as amended, $256,000 of Variable Rate Cumulative
Preferred Stock, Series S-RP. The underwriter was MIS. The consideration for
the transaction was residential real estate valued at $256,000. See Note 13
to the Consolidated Financial Statements.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There were no matters submitted to a vote of Security Holders during the
reporting period.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
3(a). Articles of Incorporation of the Company (Exhibit
3(a) to Registration No. 3-36775).
3(b). Bylaws of the Company (Exhibit 3(b) to Registration
No. 33-36775).
4(a). Indenture dated as of November 15, 1990 between
Summit and West One Bank, Idaho, N.A., Trustee
(Exhibit 4(a) to Registration No. 33-36775).
4(b). Tri-Party Agreement dated as of April 24, 1996
between West One Bank, First Trust and Summit,
appointing First Trust as successor Trustee (Exhibit
4(c) to Registration No. 333-19787).
4(c). First Supplemental Indenture between Summit and
First Trust dated as of December 31, 1997, with
respect to Investment Certificates, Series B.
(Exhibit 4(c) to Form 10-K filed January 7, 1998).
4(d). Statement of Rights, Designations and Preferences of
Variable Rate Cumulative Preferred Stock Series S-1
(Exhibit 4(c) to Registration No. 33-57619).
4(e). Statement of Rights, Designations and Preferences of
Variable Rate Cumulative Preferred Stock Series S-2
(Exhibit 4(c) to Registration No. 333-115).
4(f). Statement of Rights, Designations and Preferences of
Variable Rate Cumulative Preferred Stock Series S-RP
(Exhibit 4(f) to Form 10-K file January 13, 1997).
4(g). Statement of Rights, Designations and Preferences of
Variable Rate Cumulative Preferred Stock, Series S-3
(Exhibit 4(f) to Amendment 3 to Registration No. 333-
19787).
10(a). Receivable Management, Acquisition and Service
Agreement between Summit Securities, Inc. and
Metropolitan Mortgage & Securities Co., Inc. dated
September 9, 1994 (Exhibit 10(a) to Registration No.
33-57619).
10(b). Receivable Management, Acquisition and Service
Agreement between Old Standard Life Insurance
Company and Metropolitan Mortgage & Securities Co.,
Inc. dated December 31, 1994 (Exhibit 10(b) to
Registration No. 33-57619).
10(c). Receivable Management, Acquisition and Service
Agreement between Arizona Life Insurance Company and
Metropolitan Mortgage & Securities Co., Inc. dated
October 10, 1996 (Exhibit 4(c) to Registration No.
333-19787).
10(d). Reinsurance Agreement between Western United Life
Assurance Company and Old Standard Life Insurance
Company (Exhibit 10(d) to Form 10-K filed January 7,
1998.
11. Statement regarding Computation of Earnings Per
Common Share (See Financial Statements).
*27. Financial Data Schedule.
*Filed herewith
(b) Reports on Form 8-K
There have been no reports on Form 8-K filed during the quarter
for which this report is filed.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed this 23rd day of February
1998 on its behalf by the undersigned, thereunto duly authorized.
SUMMIT SECURITIES, INC.
/s/ TOM TURNER
______________________________________________
Tom Turner
President/Director
/s/ STEVE CROOKS
______________________________________________
Steve Crooks
Principal Accounting Officer
Principal Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-END> DEC-31-1997
<CASH> 9,654
<SECURITIES> 21,253
<RECEIVABLES> 127,413
<ALLOWANCES> 1,388
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 170,156
<CURRENT-LIABILITIES> 0
<BONDS> 51,081
<COMMON> 100
0
553
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 170,156
<SALES> 0
<TOTAL-REVENUES> 7,440
<CGS> 0
<TOTAL-COSTS> 5,014
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 400
<INTEREST-EXPENSE> 1,166
<INCOME-PRETAX> 860
<INCOME-TAX> 200
<INCOME-CONTINUING> 660
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 660
<EPS-PRIMARY> 53.76
<EPS-DILUTED> 53.76
</TABLE>
