Business Services Industry
Approved Financial Corp. Announces Results for the Second Quarter of 1999
Business Wire, August 9, 1999
OPERATING DATA
Three Months Six Months
Ended Ended
June 30, June 30,
Loan Originations ($ Thousands) 1999 1998 1999 1998
-----------------------------------
Dollar Volume of Loans Originated:
Broker $31,585 $55,788 $57,310 $105,083
Retail - funded through other
lenders 42,352 20,936 88,856 36,430
Retail - funded in-house
non-conforming 17,065 63,340 42,100 122,869
Retail - funded in-house
conforming and government 7,451 0 7,451 0
Total $98,453 $140,064 $195,717 $264,382
Number of Loans Originated:
Broker 519 999 927 1,904
Retail - funded through
other lenders 497 267 1,042 423
Retail - funded in-house
non-conforming 268 1,148 645 2,270
Retail - funded in-house
conforming and government 79 0 79 0
Total 1,363 2,414 2,693 4,597
----------------------------------------------------------------------------------------
Second Quarter 1999, Loan Production Statistics
Non-conforming Loans Funded In-house
----------------------------------------------------------------------------------------
Credit
Classification A 74%
B 16%
C 8%
D 2%
Loans with
Prepayment
Penalty 80%
Primary Purpose:
Debt Consolidation 72%
Refinance 22%
Purchase 5%
Home Improvement 1%
Lien Position:
1st Mortgage 87%
2nd Mortgage 13%
Fixed rate
mortgages 80%
Adjustable rate
mortgages 20%
Owner Occupied 95%
Non-Owner
Occupied 5%
APPROVED FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
As of June 30, 1999 and December 31, 1998
(Dollars in thousands, except per share amounts)
ASSETS (Unaudited) 1998
1999
---------------- ------------------
Cash $ 6,471 $ 6,269
Mortgage loans held for sale, net 62,532 105,044
Real estate owned, net 2,161 1,707
Investments 2,524 3,472
Income taxes receivable 3,487 2,023
Deferred tax asset 1,084 3,330
Premises and equipment, net 4,921 5,579
Goodwill, net 4,047 4,554
Other assets 2,832 4,140
Total assets $ 90,059 $ 136,118
LIABILITIES AND EQUITY
Liabilities:
Revolving warehouse loan $ 31,835 $ 72,546
FHLB bank advances 1,000 0
Mortgage payable 346 1,210
Notes payable-related parties 3,680 3,628
Certificate of indebtedness 2,365 2,414
Certificates of deposits 30,026 29,728
Loan proceeds payable 271 2,565
Accrued and other liabilities 3,870 4,760
Total liabilities 73,393 116,851
------------------
Shareholders' equity:
Preferred stock series A, $10 par value;
Noncumulative, voting:
Authorized shares - 100
Issued and outstanding shares - 90 1 1
Common stock $1.00 par value in
1999 and 1998:
Authorized shares - 40,000,000
Issued and outstanding
shares - 5,482,114
in 1999 and 1998 5,482 5,482
Accumulated other comprehensive
income (loss) (26) 30
Additional paid in capital 552 552
Retained earnings 10,657 13,202
Total equity 16,666 19,267
Total liabilities and equity $ 90,059 $ 136,118
The notes to financial statements appearing in the Company's
filings on SEC Form 10Q and 10K are an integral part of these
consolidated financial statements.
APPROVED FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND
COMPREHENSIVE INCOME (LOSS)
for the three months ended June 30, 1999 and 1998
(Dollars in thousands, except share and per share amounts)
(Unaudited)
1999 1998
--------------- -------------
Revenue:
Gain on sale of loans $ 3,127 $ 8,779
Interest income 1,943 2,653
Other fees and income 2,106 1,678
7,176 13,110
Expenses:
Compensation and related benefits 4,559 5,980
General and administrative 3,008 2,820
Loan production expense 472 972
Interest expense 1,212 1,535
Provision for loan and
foreclosed property losses 43 949
9,294 12,256
Income/(loss) before
income taxes (2,118) 854
Provision for (benefit from)
income taxes (808) 341
Net income/(loss) $ (1,310) $ 513
Other comprehensive income, net of tax:
Unrealized gains on securities:
Unrealized holding gain/(loss)
arising during period (23) (1,823)
Comprehensive income/(loss) $ (1,333) $ (1,310)
Net income/(loss) per share:
Basic and Diluted $ (0.24) $ 0.09
Weighted average number of shares outstanding:
Basic 5,482,114 5,512,114
Diluted 5,482,114 5,515,702
The notes to financial statements appearing in the Company's
filings on SEC Form 10Q and 10K are an integral part of these
consolidated financial statements.
APPROVED FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND
COMPREHENSIVE INCOME (LOSS)
for the six months ended June 30, 1999 and 1998
(Dollars in thousands, except share and per share amounts)
(Unaudited)
1999 1998
--------------- --------------
Revenue:
Gain on sale of loans $ 7,523 $ 18,533
Interest income 4,639 5,254
Other fees and income 4,398 3,161
16,560 26,948
Expenses:
Compensation and related
benefits 9,390 11,999
General and administrative 5,710 5,832
Loan production expense 1,027 1,868
Interest expense 2,895 3,084
Provision for loan and
foreclosed property losses 1,490 838
20,512 23,621
Income/(loss) before
income taxes (3,952) 3,327
Provision for (benefit from)
income taxes (1,407) 1,380
Net income/(loss) $ (2,545) $ 1,947
Other comprehensive income, net of tax:
Unrealized gains on securities:
Unrealized holding gain/(loss)
arising during period (56) (726)
Comprehensive income/(loss) $ (2,601) $ 1,221
Net income/(loss) per share:
Basic and Diluted $ (0.46) $ 0.35
Weighted average number of
shares outstanding:
Basic 5,482,114 5,509,535
Diluted 5,482,114 5,515,072
The notes to financial statements appearing in the Company's
filings on SEC Form 10Q and 10K are an integral part of these
consolidated financial statements.
APPROVED FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
for the six months ended June 30, 1999 and 1998
(In thousands)
(Unaudited)
1999 1998
-------------- -------------
Operating activities
Net income/(loss) $ (2,545) $ 1,948
Adjustments to reconcile
net income/(loss)to net cash
provided by operating activities:
Depreciation of premises
and equipment 442 526
Amortization of goodwill 235 0
Provision for loan losses 1,080 720
Provision for losses on real
estate owned 165 119
Loss on sale of securities 8 1
Loss on sale of real estate owned 245 243
(Gain) on sale of loans (7,523) (18,533)
Proceeds from sale and
prepayments of loans 154,139 256,736
Originations - Loans
held for sale (106,910) (227,952)
Changes in assets and liabilities:
Loan sale receivable (2) (1,794)
Other assets 1,308 (4,444)
Accrued and other liabilities (618) 884
Income tax payable (1,464) (2,874)
Deferred tax asset 2,277 1,176
Loan proceeds payable (2,294) 0
Net cash provided by
operating activities 38,543 6,756
Cash flows from investing activities:
Purchase of securities (125) (188)
Sales of ARM Portfolio shares 4,692 0
Sales of securities 0 1,000
Purchase of premises and equipment (1,112) (590)
Sales of premises and equipment 1,328 17
Sales of real estate owned 1,172 2,305
Real estate owned
capital improvements (321) 0
Recoveries on loans charged off 11 0
Purchases of ARM Portfolio shares (3,566) 0
Purchases of FHLB stock (146) 0
Net cash provided by
investing activities 1,933 2,544
APPROVED FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS, continued
for the six months ended June 30, 1999, and 1998
(In thousands)
(Unaudited)
1999 1998
Cash flows from financing activities:
Borrowings - warehouse 107,455 206,151
Repayments of borrowings - warehouse (148,166) (221,148)
Proceeds from FHLB advances 1,000 380
Principal payments on
mortgages payable (864) (40)
Net increase (decrease) in:
Notes payable 52 (146)
Certificates of indebtedness (49) (60)
Certificates of deposit 298 4,162
Net cash used by financing activities (40,274) (10,701)
Net increase in cash 202 (1,401)
Cash at beginning of period 6,269 11,869
Cash at end of period $ 6,471 $ 10,468
Supplemental cash flow information:
Cash paid for interest $ 3,103 $ 3,094
Cash paid for income taxes 0 3,078
Supplemental non-cash information:
Loan balances transferred to
real estate owned $ 1,975 $ 2,731
Exchange of stock for
acquisition of Armada Residential
Mortgage LLC 0 669
The notes to financial statements appearing in the Company's
filings on SEC Form 10Q and 10K are an integral part of these
consolidated financial statements.
COPYRIGHT 1999 Business Wire
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