<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
FOR ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE,
SAVINGS AND SIMILAR PLANS PURSUANT TO SECTION 15(d) OF
THE SECURITIES
EXCHANGE ACT OF 1924
(X)ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1995
OR
( )TRANSITION REPORT PURSUANT TO 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
COMMISSION FILE NUMBER 0-20526
OLYMPIC FINANCIAL LTD.
401(k) PROFIT SHARING PLAN
(TITLE OF THE PLAN)
OLYMPIC FINANCIAL LTD.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
MINNESOTA 41-1664848
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
7825 WASHINGTON AVENUE SOUTH, MINNEAPOLIS, MINNESOTA, 55439-2435
(Address of principal executive offices)
Registrant's telephone number, including area code: (612) 942-9880
<PAGE>
Olympic Financial Ltd. 401(k) Profit Sharing Plan
Financial Statements
Year ended December 31, 1995
CONTENTS
Report of Independent Auditors . . . . . . . . . . . . . . . . . . . . . . . .1
Financial Statements
Statement of Net Assets Available for Benefits . . . . . . . . . . . . . . . .2
Statement of Changes in Net Assets Available for Benefits. . . . . . . . . . .2
Notes to Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . .3
Item 27(a)--Schedule of Assets Held for Investment Purposes. . . . . . . . . .7
Item 27(d)--Schedule of Reportable Transactions. . . . . . . . . . . . . . . .8
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REPORT OF INDEPENDENT AUDITORS
Olympic Financial Ltd. 401(k)
Profit Sharing Plan Committee
We have audited the accompanying statement of net assets available for
benefits of Olympic Financial Ltd. 401(k) Profit Sharing Plan as of December
31, 1995, and the related statement of changes in net assets available for
benefits for the year then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan at
December 31, 1995, and the changes in its net assets available for benefits
for the year then ended, in conformity with generally accepted accounting
principles.
Our audit was performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental
schedules of assets held for investment purposes as of December 31, 1995, and
reportable transactions for the year then ended, are presented for purposes
of complying with the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974, and are not a required part of the basic financial statements. The
supplemental schedules have been subjected to the auditing procedures applied
in our audit of the basic financial statements and, in our opinion, are
fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
The information presented in the "Schedule of Reportable Transactions" and
certified by the custodian does not disclose the historical cost of
investments sold, and related gain or loss. Disclosure of this information is
required by the Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974.
/s/ ERNST & YOUNG LLP
Minneapolis, Minnesota
May 31, 1996
1
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Olympic Financial Ltd. 401(k) Profit Sharing Plan
Statement of Net Assets Available for Benefits
December 31, 1995
ASSETS
Cash $ 3,526
Investments:
Mutual funds 167,177
Olympic Financial Ltd. Common stock 154,202
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321,379
Employer contributions receivable 120,102
Employee contributions receivable 10,204
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Net assets available for benefits $455,211
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Statement of Changes in Net Assets Available for Benefits
Year ended December 31, 1995
Additions:
Employee contributions $352,997
Employer contributions 120,102
Investment income 6,252
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479,351
Deductions:
Benefits paid 9,485
Net realized and unrealized depreciation in fair
value of investments (14,655)
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Net increase 455,211
Net assets available for benefits at beginning of year --
-----------
Net assets available for benefits at end of year $455,211
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SEE ACCOMPANYING NOTES.
2
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Olympic Financial Ltd. 401(k) Profit Sharing Plan
Notes to Financial Statement
December 31, 1995
1. DESCRIPTION OF THE PLAN
GENERAL
Olympic Financial Ltd. 401(k) Profit Sharing Plan (the Plan) is a defined
contribution plan sponsored by Olympic Financial Ltd. (the Company). The Plan
became effective on January 1, 1995. An employee is eligible to participate
in the Plan upon attaining the age of 21 and completing a qualifying period
of 12 consecutive months of employment within which the employee has had at
least 1,000 credited hours of service. Effective April 29, 1996, the Board of
Directors of the Company approved reduction of the required hours of service
to 500 hours.
The following description of the Plan provides only general information.
Participants should refer to the Plan agreement for a more complete
description of the Plan's provisions.
CONTRIBUTIONS
The participants may contribute up to 10% of his or her annual compensation
to any of the investment funds. Matching contributions by the Company are
made at a percentage of the participant's contribution which the Company, in
its sole discretion, determines from year to year.
VESTING
Participants are fully vested at all times for participant contribution
amounts. Matching contributions by the Company are vested 20% each year
beginning year two; fully vested at the end of year six of vested service.
Effective April 29, 1996, the Board of Directors of the Company approved a
revised vesting schedule that provides 50% vesting after one year and 100%
vesting after two years of service.
PARTICIPANT LOANS AND HARDSHIP WITHDRAWALS
Participants can borrow up to the lesser of $50,000 or one-half of their
vested account balance. Interest on loans will accrue at prime rate plus 2%.
Loans are collateralized by the participant's account balance.
3
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Olympic Financial Ltd. 401(k) Profit Sharing Plan
Notes to Financial Statement (continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
Hardship withdrawals of elective deferrals are permitted by the Plan, as
described in the Plan agreement.
PAYMENT OF BENEFITS
Benefits are typically paid as soon as practicable after a participant
retires, dies, becomes disabled or is terminated from the Company. Benefits
are payable in the form of a lump sum distribution or installments over a
fixed period of years depending on the participant's request.
PLAN TERMINATION
In the event the Plan terminates, the accounts of all participants continue
to share in trust earnings, gains or losses until such time as distributions
are made.
FEES AND EXPENSES
All administrative expenses of the Plan are paid for by the Company.
Commissions for the purchase or sale of investments, if applicable, are paid
by the Plan and are added to the cost of investments purchased or subtracted
from the proceeds of investments sold.
2. SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The accounting records of the Plan are maintained on the accrual basis.
INVESTMENTS
Olympic Financial Ltd. Common stock is stated at fair value (the last
reported sales price on the last business day of the year). Fair value of
mutual funds represents the net asset value of the fund shares which is
calculated based on the valuation of the fund's underlying investments at
fair value at the end of the year.
4
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Olympic Financial Ltd. 401(k) Profit Sharing Plan
Notes to Financial Statement (continued)
3. INVESTMENTS
The Plan's assets have been deposited in investment funds managed by a trust
company. Allocation of contributions to the available investment funds is
based upon the employee's choice. The changes in assets of each fund during
the year ended December 31, 1995 were as follows:
<TABLE>
<CAPTION>
IDS CASH OLYMPIC
IDS NEW IDS IDS BOND MANAGEMENT COMPANY
DIMENSION MUTUAL FUND FUND STOCK UNALLOCATED TOTAL
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions:
Contributions $85,610 $44,384 $15,654 $13,673 $179,946 $133,832 $473,099
Investment income 3,856 1,409 470 299 218 -- 6,252
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89,466 45,793 16,124 13,972 180,164 133,832 479,351
Deductions:
Benefits paid to participants 2,222 1,893 579 1,133 3,658 -- 9,485
Interfund-transfers (net) 265 (19) (478) (612) 844 -- --
Net realized and unrealized apprecia-
tion (depreciation) in current value
of investments 5,480 2,307 709 (3) (23,148) -- (14,655)
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5,745 2,288 231 (615) (22,304) -- (14,655)
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Balance at December 31, 1995 $92,989 $46,188 $15,776 $12,224 $154,202 $133,832 $455,211
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</TABLE>
5
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Olympic Financial Ltd. 401(k) Profit Sharing Plan
Notes to Financial Statement (continued)
4. INCOME TAX STATUS
The form of the Plan has received a determination letter from the Internal
Revenue Service dated September 15, 1994, stating that the form of the Plan
is acceptable under Section 401(a) of the Internal Revenue Code of 1986 (the
"Code"). The Administrator believes the Plan is qualified and therefore,
exempt from taxation. Once qualified, the Plan is required to operate in
conformity with the Code and ERISA to maintain its tax-exempt status. The
Administrator is not aware of any course of action or series of events that
have occurred that might adversely affect the Plan's qualified status.
6
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Olympic Financial Ltd. 401(k) Profit Sharing Plan
Item 27(a)--Schedule of Assets Held for Investment Purposes
December 31, 1995
IDENTITY OF ISSUER, BORROWER FAIR
OR SIMILAR PARTY UNITS HELD COST VALUE
- --------------------------------------------------------------------------
IDS New Dimensions Fund 5,385 shares $ 87,722 $ 92,989
IDS Mutual 3,532 shares 43,974 46,188
IDS Bond Fund 3,000 shares 15,092 15,776
IDS Cash Management Fund 12,224 shares 12,224 12,224
Olympic Financial Ltd. Stock 9,489 shares 177,257 154,202
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$336,269 $321,379
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7
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Olympic Financial Ltd. 401(k) Profit Sharing Plan
Item 27(d)--Schedule of Reportable Transactions
Year ended December 31, 1995
<TABLE>
<CAPTION>
CURRENT VALUE
OF ASSET ON
PURCHASE SELLING COST OF TRANSACTION NET GAIN
IDENTITY OF PARTY INVOLVED DESCRIPTION OF ASSET PRICE PRICE ASSET DATE OR (LOSS)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CATEGORY (iii)--SERIES OF TRANSACTIONS IN EXCESS OF 5% OF PLAN ASSETS
Olympic Financial Ltd. Purchased 5,363 shares of Common Stock in
6 transactions $80,146 $80,146 $80,146
Sold 1,090 shares of Common Stock in
6 transactions $19,300 15,202 19,300 $4,098
IDS New Dimensions Fund Purchased 5,345 units in 28 transactions 86,084 86,084 86,084
Sold 157 units in 11 transactions 2,659 * 2,659 *
IDS Mutual Purchased 3,175 units in 26 transactions 45,043 45,043 45,043
Sold 193 units in 9 transactions 2,437 * 2,437 *
</TABLE>
Note: 5% of plan assets at December 31, 1995 was used as a threshold, because
this is a new plan in 1995.
There were no category (i), (ii) or (iv) transactions in the year ended
December 31, 1995.
*This information is not available.
8
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the employee benefit plan) have
duly caused this annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
OLYMPIC FINANCIAL LTD.
401(k) PROFIT SHARING PLAN
Date: June 28, 1996 By: /s/ John A. Witham
----------------------------------
John A. Witham
Executive Vice President and
Chief Financial Officer
(Principal Financial Officer)
By: /s/ Mary E. West
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Mary E. West
Senior Vice President,
Human Resources
9
