UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended September 30, 1996
Commission File Number 0-21912
First Chesapeake Financial Corporation
(Exact name of registrant as specified in its charter)
Virginia 54-1624428
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
9100 Arboretum Parkway, Suite 160
Richmond, Virginia 23236
(Address of principal executive offices)
(Zip code)
(804)320-0160
(Registrant's telephone number, including area code)
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 [ ]
The number of shares of common stock of registrant outstanding as of August 9,
1996 was 4,621,550 shares.
<PAGE>
<TABLE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
FIRST CHESAPEAKE FINANCIAL CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<CAPTION>
September 30, December 31,
1996 1995
_____________ ____________
(Unaudited)
<S> <C> <C>
ASSETS
Cash and cash equivalents $ 1,236,342 $ 1,833,216
Receivable from sale of servicing rights 17,132 196,934
Mortgage loans held for sale 607,485 590,529
Receivable from sale of loans - 798,285
Note receivable 25,000 109,000
Real estate owned - 298,000
Furniture and equipment 408,665 512,572
Organization costs 15,508 31,018
Loans to related parties 100,000 -
Other assets 221,642 184,917
____________ ____________
TOTAL ASSETS $ 2,631,774 $ 4,554,471
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Notes payable $ 355,771 $ 1,157,348
Accounts payable
Trade 26,515 61,145
Purchased mortgage servicing rights 2,500 2,500
Accrued restructuring charges 1,236 165,149
____________ ____________
Total liabilities 386,022 1,386,142
Stockholders' equity
Convertible preferred stock; no par value;
$1 stated value per share; 5,000,000 shares
authorized; no shares issued - -
Common stock; no par value; 10,000,000 shares
authorized; 4,621,550 shares issued and
outstanding 10,542,458 10,542,458
Common stock warrant 50,000 50,000
Deficit ( 8,346,706) ( 7,424,129)
____________ ____________
Total stockholders' equity 2,245,752 3,168,329
____________ ____________
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,631,774 $ 4,554,471
============ ============
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
FIRST CHESAPEAKE FINANCIAL CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
September 30, September 30, September 30, September 30,
1996 1995 1996 1995
____________ ____________ ____________ ____________
<S> <C> <C> <C> <C>
REVENUES
Mortgage origination $ 7,960 $( 2,822) $ 38,229 $ 236,871
Servicing fees 1,894 4,087 7,301 133,732
Gain on sales of loans 22,965 119,045 76,424 860,935
Loan administration - 255 - 18,865
Interest income 28,980 63,881 138,435 443,945
Interest expense ( 2,840) ( 11,845) ( 56,852) ( 329,322)
Other 4 9,025 15,992 112,455
____________ ____________ ____________ ____________
Total revenues 58,963 181,626 219,529 1,477,481
OPERATING EXPENSES
Compensation and employee
benefits 140,610 279,582 524,505 1,947,499
Professional fees 14,018 6,300 101,134 130,595
Commitment fees 3,345 1,020 24,954 41,061
Occupancy 17,948 33,069 74,536 196,564
Depreciation and other
amortization 37,474 25,857 113,499 112,459
Other operating expenses 53,896 206,850 303,478 750,945
Restructuring charges - 50,000 - 450,000
____________ ____________ ____________ ____________
Total operating expenses 267,291 602,678 1,142,106 3,629,123
____________ ____________ ____________ ____________
NET LOSS $ 208,328 $ 421,052 $ 922,577 $ 2,151,642
============ ============ ============ ============
LOSS PER SHARE $ 0.05 $ 0.09 $ 0.20 $ 0.47
============ ============ ============ ============
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
FIRST CHESAPEAKE FINANCIAL CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Nine Months Nine Months
Ended Ended
September 30, September 30,
1996 1995
____________ ____________
<S> <C> <C>
OPERATING ACTIVITIES
Net loss $( 922,577) $( 2,151,642)
Adjustments
Depreciation and other amortization 113,499 122,318
Net decrease (increase) in loans
held for sale ( 16,956) 15,967,701
Decrease in receivable from loan sales 798,285 -
Loss on sale of fixed assets 4,994 114,065
Loss on sale of real estate owned 4,625 -
Decrease (increase) in other assets ( 36,725) 290,717
Decrease in trade accounts payable
and other liabilities ( 34,631) ( 326,485)
Provision for loss on real estate owned - 50,000
Accrued restructuring charges, net ( 163,913) 150,005
____________ ____________
Net cash provided (absorbed) by
operating activities ( 253,399) 14,216,679
____________ ____________
INVESTING ACTIVITIES
Purchase of furniture and equipment - ( 145,375)
Proceeds from sale of fixed assets 924 60,523
Proceeds from sale of servicing, net of
selling expenses 179,802 6,711,060
Decrease in accounts payable related to
purchased mortgage servicing rights - ( 397,500)
Extensions of credit to related parties ( 100,000) -
Purchase of notes receivable - ( 134,000)
Repayments of notes receivable 84,000 -
Additions to real estate owned - ( 400,696)
Proceeds from sale of real estate owned 293,375 -
Other - ( 67,600)
____________ ____________
Net cash provided by investing activities 458,101 5,626,412
____________ ____________
FINANCING ACTIVITIES
Repayment of bank loans ( 1,742) ( 4,150,000)
Net decrease in warehouse line of credit ( 799,834) (15,727,250)
____________ ____________
Net cash absorbed by financing activities ( 801,576) (19,877,250)
____________ ____________
NET DECREASE IN CASH AND CASH EQUIVALENTS ( 596,874) ( 34,159)
Cash and cash equivalents at beginning
of period 1,833,216 2,472,907
____________ ____________
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,236,342 $ 2,438,748
============ ============
SUPPLEMENTAL CASH FLOW DISCLOSURES
Cash payments of interest expense $ 56,852 $ 337,025
============ ============
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
FIRST CHESAPEAKE FINANCIAL CORPORATION
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation
The accompanying consolidated financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-QSB and Item 310(b) of
Regulation S-B. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments, consisting
only of normal recurring adjustments, considered necessary for a fair
presentation have been included. Operating results for the three and nine
months ended September 30, 1996 are not necessarily indicative of the results
that may be expected for the year ending December 31, 1996. For further
information, refer to the consolidated financial statements and footnotes
thereto included in the Company's Annual Report on Form 10-KSB for the year
ended December 31, 1995.
2. Loan Servicing
The Company services both conforming and nonconforming single family
first mortgage loans. Conforming conventional loans serviced by the Company are
securitized through Federal National Mortgage Association ("FNMA") or Federal
Home Loan Mortgage Association ("FHLMC") programs on a nonrecourse basis whereby
foreclosure losses are generally the responsibility of FNMA or FHLMC and not the
Company. Nonconforming loans serviced by the Company are loans originated by a
subsidiary of the Company and are being temporarily serviced pending sale of the
loans and related servicing to other investors. Loans being serviced are
summarized as follows:
September 30, 1996 December 31, 1995
----------------- -----------------
No. Amount No. Amount
--- ---------- --- ----------
Conforming 53 $6,769,901 58 $7,458,380
Nonconforming 10 920,496 13 1,235,065
--- ---------- --- ----------
63 $7,690,397 71 $8,693,445
=== ========== === ==========
<PAGE>
Notes to Consolidated Financial Statements (Continued) (Unaudited)
2. Loan Servicing (Continued)
Of the loans being serviced at September 30, 1996 and December 31, 1995,
the nonconforming loans are held for sale servicing released and the servicing
will transfer to the investor within 60 days. Additionally, the conforming
loans are being subserviced for the Company by another servicer. Loans serviced
for others are not included in the accompanying consolidated balance sheets.
In connection with its loan servicing activities, the Company makes
certain payments of property taxes and insurance premiums and advances certain
principal and interest payments to investors prior to collecting them from
specific mortgagors. These amounts represent receivables to the Company and are
included in other assets in the accompanying consolidated balance sheets.
At September 30, 1996, the Company carried Fidelity coverage of $300,000
and errors and omissions coverage of $300,000 related to its mortgage banking
activities.
3. Notes Payable
Notes payable consists of the following:
September 30, December 31,
1996 1995
------------ -----------
Warehouse line of credit $ 322,762 $1,122,597
Vehicle loan 33,009 34,751
------------ -----------
$ 355,771 $1,157,348
============ ==========
<PAGE>
Notes to Consolidated Financial Statements (Continued) (Unaudited)
Note 3. Notes Payable (Continued)
The Company's subsidiary, American Mortgage Express, Inc., has a
warehouse line of credit ("Warehouse Facility") for $3,000,000 with First Union
National Bank of North Carolina. This Warehouse Facility provides a credit line
to fund the origination of nonconforming 1 to 4 family residential first and
second lien mortgage loans. It bears interest at the prime rate and expires on
December 31, 1996. The Warehouse Facility is collateralized by the loans held
for sale and provides for certain covenants, including required financial ratios
and minimum net worth requirements. At September 30, 1996, the Company was in
compliance with the loan covenants.
The following information relates to the Warehouse Facility:
September 30, December 31,
1996 1995
------------ -----------
Outstanding at end of period $ 322,762 $ 1,122,597
Weighted average interest rate
at end of period 8.25% 7.00%
Maximum amount outstanding
during the period $ 2,700,540 $16,102,475
Average amount outstanding
during the period $ 911,815 $ 3,230,360
Weighted average interest rate
during the period 8.16% 7.52%
4. Loss Per Share
Loss per share for the three and nine months ended September 30, 1996
and 1995 was computed by dividing the net loss by 4,621,550 common shares
representing the aggregate of the weighted average number of common shares
outstanding during the periods. Outstanding stock options and warrants have
been excluded from loss per share calculations as their exercise prices exceed
the average market price for the three months ended September 30, 1996 and 1995
or their inclusion would be anti-dilutive.
<PAGE>
Notes to Consolidated Financial Statements (Continued) (Unaudited)
5. Commitments
The Company regularly enters into short term commitments with applicants
to fund mortgage loans subject to approval. Certain of these commitments
require the Company to offer mortgage loans at pre-established interest rates
and fees. As of September 30, 1996, there were no commitments to fund mortgage
loan applications in process with pre-established interest rates and fees.
6. Proposed Acquisition
On December 11, 1995, the Company executed a Letter of Intent to acquire
all of the outstanding stock of a federal savings bank (the "Bank") located in
Florida for a purchase price of approximately $5,500,000. The purchase price is
payable $4,500,000 in cash at closing and a $1,000,000 note payable in five
equal annual installments of $200,000 each and bearing interest at a rate of 6%
on the unpaid balance. On March 25, 1996 a Definitive Acquisition Agreement was
executed between the parties. Consummation of this transaction is subject to
regulatory approval. The Company proposes to raise between $2,000,000 and
$3,000,000 in a private placement of its convertible preferred stock and obtain
bank financing of approximately $1,000,000 to provide the necessary funds to
acquire the Bank or another financial institution.
7. Litigation
The Company and its two principal officers ("Defendants") are defendants
in a legal action filed on June 6, 1996 by two former employees of Waterford
Mortgage Corporation ("Plaintiffs"), a wholly owned subsidiary of the Company
that ceased operations in June, 1995. The suit was filed in the Circuit Court
of Fairfax County, Virginia and served on Defendants on June 12, 1996.
Plaintiffs allege, among other things, that (1) certain misrepresentations were
made by Defendants that fraudulently induced Plaintiffs to merge Waterford
Mortgage Corporation into the Company in exchange for stock in the Company, and
(2) the Company breached employment agreements with each Plaintiff. The
Plaintiffs seek unspecified compensatory and punitive damages and reimbursement
of their costs, expenses and legal fees in filing suit. The Company and its
officers deny the allegations and are vigorously contesting the action.
Although the outcome of the action cannot be determined, the Company expects to
prevail and no provision for any liability that may result from the action has
been made in the financial statements.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Financial Condition
Assets of the Company decreased from $4,554,471 at December 31, 1995
to $2,631,774 at September 30, 1996, a decrease of $1,923,000 or 42%. This
decrease was primarily due to the Company's loss of approximately $923,000 for
the nine month period, a decrease of $781,000 in mortgage loans held for sale
(including a $798,000 decline in receivable from sale of loans), and the paydown
of approximately $200,000 in trade accounts payable and other liabilities.
Liabilities decreased by $1,000,000, from $1,386,000 at Decmeber 31, 1995 to
$386,000 at September 30, 1996. This decrease resulted from a reduction in
the warehouse notes payable of $800,000 associated with the decline in the
mortgage loans held for sale, and the paydown of trade accounts payable and
other liabilities of $200,000. At September 30, 1996, the Company had liquid
assets of $1,986,000 and current liabilities of $386,000.
The Company's current operations consist primarily of the operations of
its wholly owned subsidiary, American Mortgage Express, Inc. ("AME"). AME is a
mortgage banking company which originates nonconforming single family first and
second deed of trust loans. The Company's net loss and decrease in loans held
for sale are a direct result of AME's inability to generate sufficient loan
originations to be profitable. The mortgage market is still somewhat depressed,
and the Company has struggled to increase its loan originations. It has not
been able to attract loan officers who can build production nor has it been able
to increase production through its correspondents.
Results of Operations
Current Year Performance and Earnings Outlook
As discussed previously, the Company incurred a loss of $923,000 for the
nine months ended September 30, 1996 as compared to a loss of $2,152,000 for the
same period in 1995. The substantial improvement in operations is a result of
the closure of the Company's wholly owned subsidiary, Waterford Mortgage
Corporation ("Waterford"). Waterford originated conforming loans in northern
Virginia. The Company's current year loss is a result of the continued
inability to generate sufficient loan originations by its subsidiary, AME, to be
profitable. The mortgage loan environment has continued to be highly
competitive and has put tremendous pressure on the operating margins of the
Company. Additionally, AME has been unable to attract loan officers who can
build loan production nor has it been able to increase loan production through
its correspondents. To the extent that general demand for mortgage loans
remains at or below its current level and price competition within the industry
continues, the Company's future operating margins for its origination business
will remain under pressure. Any improvement in the Company's ability to
originate mortgage loans cannot be predicted.
<PAGE>
In recent years financial institutions have enjoyed strong returns.
Management of the Company has extensive experience in operating financial
institutions and believes that the acquisition of a financial institution would
greatly increase the Company's ability to attain profitable operations, both
from the operation of the financial institution and by improving the financial
outlook for AME. On March 25, 1996, the Company executed a definitive agreement
to acquire all of the outstanding stock of a federal savings bank (the "Bank")
located in Florida for a purchase price of approximately $5,500,000 (see Note 6
to "Notes to Consolidated Financial Statements"). Consummation of this
transaction is subject to regulatory approval. In addition to cash on hand, the
Company proposes to raise between $2,000,000 and $3,000,000 in a private
placement of its convertible preferred stock and obtain bank financing of
approximately $1,000,000 to provide the necessary funds to acquire the Bank or
another financial institution.
Comparison of Three Months Ended September 30, 1996 to Three Months Ended
September 30, 1995
Revenues. Total revenues for the three months ended September 30, 1996
amounted to $59,000 representing a decrease of $123,000, or 68%, when compared
to the same period in 1995. The Company's principal sources of revenue are fees
from mortgage origination, gains on loan sales, and servicing activities. The
Company experienced the decrease in revenues as a result of the closure of
origination operations in northern Virginia during the second and third quarters
of 1995. As a result of the closure of its conforming loan origination
operations in northern Virginia, gain on sale of loans declined by approximately
$96,000, from $119,000 in the third quarter of 1995 to $23,000 in the third
quarter of 1996, and net interest income declined by $26,000, from $52,000 in
the third quarter of 1995 to $26,000 in the third quarter of 1996. Also, the
Company had anticipated that AME would compensate for lower revenues resulting
from the closure of northern Virginia operations; however this did not occur as
discussed previously.
Expenses. Total expenses for the three months ended September 30, 1996
amounted to $267,000 as compared to $603,000 for the same period in 1995. This
decrease is attributable to the reduction in overhead associated with the
closure of the Company's origination operations in northern Virginia.
<PAGE>
Comparison of Nine Months Ended September 30, 1996 to Nine Months Ended
September 30, 1995
Revenues. Total revenues for the nine months ended September 30, 1996
amounted to $220,000 representing a decrease of $1,258,000, or 85%, when
compared to the same period in 1995. The Company's principal sources of revenue
are fees from mortgage origination, gains on loan sales, and servicing
activities. The Company experienced the decrease in revenues as a result of the
sale of its servicing portfolio on November 30, 1994 and the closure of
origination operations in northern Virginia during the second and third quarters
of 1995. As a result of the servicing sale, servicing fees declined by
approximately $126,000, from $134,000 in the first nine months of 1995 to $8,000
during the same period in 1996. As a result of the closure of its conforming
loan origination operations in northern Virginia, mortgage origination fees
declined by approximately $199,000, from $237,000 in 1995 to $38,000 in 1996,
and gain on sale of loans declined by $785,000, from $861,000 in 1995 to $76,000
in 1996. Also, the Company had anticipated that AME would compensate for lower
revenues resulting from the closure of the northern Virginia operations; however
this did not occur as discussed previously.
Expenses. Total expenses for the nine months ended September 30, 1996
amounted to $1,142,000 as compared to $3,629,000 for the same period in 1995, a
a decrease of 69%. This decrease is attributable to the reduction in overhead
associated with the sale of servicing and the closure of the Company's
origination operations in northern Virginia.
Liquidity and Capital Resources
The Company's primary liquidity requirements have been the funding of
its mortgage banking operations, the net cost of mortgage loan originations and
the purchase of mortgage loan servicing rights. The Company currently does not
have any plans to purchase mortgage loan servicing rights, and, accordingly,
future funding requirements will relate to the cost of mortgage loan
originations and any additional business activities as may be approved by the
Board of Directors.
Cash and cash equivalents at September 30, 1996 amounted to $1,236,342
as compared to $1,833,216 at December 31, 1995.
<PAGE>
During the nine months ended September 30, 1996, the Company's operating
activities utilized $253,000 as compared to providing $14,217,000 in the first
nine months of 1995. These amounts reflect the decrease in loans held for sale
without regard to the associated decrease in the warehouse line of credit
reflected in financing activities. Netting the change in the warehouse line of
credit against loans held for sale provides a better picture of utilization of
funds from operating activities. If the change in the warehouse line of credit
is netted against the change in loans held for sale, the Company's operating
activities utilized $1,053,000 in 1996 as compared to the utilization of
$1,511,000 in 1995. The utilization of cash resources from operating activities
in 1996 and 1995 resulted primarily from the Company's losses in those periods.
The Company's investing activities provided $458,000 in cash resources
during the nine months ended September 30, 1996 as compared to providing
$5,626,000 for the same period in 1995. In 1995, the sale of the Company's
servicing portfolio provided $6,711,000 in cash resources, partially offset by
additions to fixed assets of $145,000, foreclosed real estate of $401,000,
purchase of notes receivable of $134,000, and payments for the purchase of
servicing rights of $397,000. In 1996, the major sources of cash from investing
activities came from proceeds from the sale of real estate owned of $293,000 and
sale of servicing of $180,000.
Without consideration to the change in the warehouse line of credit,
financing activities utilized $4,150,000 during 1995, and had very little impact
on cash in 1996. In 1995, the Company utilized a portion of the funds it
received from the sale of servicing to repay the associated debt.
In the past, the Company has relied on net proceeds from capital raising
activities, a servicing secured bank facility, and a warehouse credit facility
to meet its liquidity requirements. The servicing secured credit facility has
been terminated and will no longer be available to the Company.
The Company has a mortgage loan warehouse line of credit facility
("Warehouse Facility") of $3,000,000 with First Union National Bank of North
Carolina ("First Union") which expires on December 31, 1996 and provides a
credit line to fund the origination of nonconforming 1 to 4 family residential
first and second lien mortgage loans. It is secured by the loans held for sale
and provides for certain covenants, including required financial ratios and
minimum net worth requirements (see Note 3 to "Notes to Consolidated Financial
Statements"). At September 30, 1996, the Company was in compliance with the
loan covenants.
<PAGE>
As of September 30, 1996, the Company had cash and cash equivalents of
$1,236,342 and available borrowings of approximately $2,677,000 pursuant to the
Warehouse Facility. Management believes that the Company's current liquidity
and capital resources are adequate to meet its near-term goals with the
exception of the acquisition of the federal savings bank in Florida discussed
previously.
Inflation
The Company is affected by inflation primarily through its impact on
interest rates. During periods of rising inflation, interest rates generally
increase, causing mortgage loan origination volumes, particularly refinancing
activity, to decline. However, during such periods, mortgage loan prepayments
slow, extending the average life of the servicing portfolio and enhancing its
market value. Conversely, during periods of declining inflation, interest rates
generally decline, resulting not only in increased mortgage loan origination
volume and mortgage loan refinancing activity, but also in accelerated loan
prepayment rates which decrease the average life of the Company's servicing
portfolio, adversely impacting its value.
Seasonality
The mortgage banking industry is generally subject to seasonal trends
which reflect the general pattern of sales and resales of homes. Such sales
typically peak during the spring and summer seasons and decline to lower levels
from November through February. The mortgage loan servicing business is
generally not subject to seasonal trends. Cyclical trends resulting from
increasing or decreasing interest rates and the general state of the economy
also affect the mortgage banking industry and may tend to accentuate or
counteract seasonal trends.
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
The Company and its two principal officers ("Defendants") are defendants
in a legal action filed on June 6, 1996 by two former employees of Waterford
Mortgage Corporation ("Plaintiffs"), a wholly owned subsidiary of the Company
that ceased operations in June, 1995. The suit was filed in the Circuit Court
of Fairfax County, Virginia and served on Defendants on June 12, 1996.
Plaintiffs allege, among other things, that (1) certain misrepresentations were
made by Defendants that fraudulently induced Plaintiffs to merge Waterford
Mortgage Corporation into the Company in exchange for stock in the Company, and
(2) the Company breached employment agreements with each Plaintiff. The
Plaintiffs seek unspecified compensatory and punitive damages and reimbursement
of their costs, expenses and legal fees in filing suit. The Company and its
officers deny the allegations and are vigorously contesting the action.
Although the outcome of the action cannot be determined, the Company expects to
prevail and no provision for any liability that may result from the action has
been made in the financial statements.
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
None
<PAGE>
Item 6. Exhibits and Reports on Form 8-K
a. None
b. Reports on Form 8-K. On August 23, 1996, the Company filed an 8-K
reporting the appointment of Mark Mendelson to the Board of
Directors. No other reports on Form 8-K were filed during the
period.
<PAGE>
FIRST CHESAPEAKE FINANCIAL CORPORATION
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed by the undersigned thereunto
duly authorized.
FIRST CHESAPEAKE FINANCIAL CORPORATION
Registrant
Date: November 12, 1996 By Max E. Gray
Max E. Gray
Chairman, President and
Chief Executive Officer
Date: November 12, 1996 By C. Harril Whitehurst, Jr.
C. Harril Whitehurst, Jr.
Executive Vice President and
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS OF FIRST CHESAPEAKE FINANCIAL CORPORATION FOR
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 1236342
<SECURITIES> 0
<RECEIVABLES> 749617
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 720966
<DEPRECIATION> 312301
<TOTAL-ASSETS> 2631774
<CURRENT-LIABILITIES> 386022
<BONDS> 0
0
0
<COMMON> 10592458
<OTHER-SE> (8346706)
<TOTAL-LIABILITY-AND-EQUITY> 2631774
<SALES> 276381
<TOTAL-REVENUES> 276381
<CGS> 1142106
<TOTAL-COSTS> 1142106
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 56852
<INCOME-PRETAX> (922577)
<INCOME-TAX> 0
<INCOME-CONTINUING> (922577)
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<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (922577)
<EPS-PRIMARY> (.20)
<EPS-DILUTED> (.20)
</TABLE>
