Exhibit 99.1
WM MORTGAGE REINSURANCE COMPANY INC.
BALANCE SHEET
AS OF MARCH 31, 2012
(UNAUDITED)
| | | | | | | | | | | | |
| | | MODIFIED GAAP
BALANCE SHEET | | | GAAP
ADJUSTMENT | | | GAAP
BALANCE SHEET | |
ASSETS | | | | | | | | | | | | |
CASH & CASH EQUIVALENTS | | $ | 6,787,137.82 | | | $ | — | | | $ | 6,787,137.82 | |
INVESTMENTS | | $ | 6,049,694.28 | | | $ | — | | | $ | 6,049,694.28 | |
INVESTMENTS HELD IN TRUST | | $ | 327,163,236.67 | | | $ | — | | | $ | 327,163,236.67 | |
ACCRUED INTEREST | | $ | 2,384,402.03 | | | $ | — | | | $ | 2,384,402.03 | |
REINSURANCE PREMIUMS RECEIVABLE | | $ | 2,389,992.81 | | | $ | — | | | $ | 2,389,992.81 | |
OTHER RECEIVABLES | | $ | — | | | $ | — | | | $ | — | |
DEFERRED FEDERAL INCOME TAX | | $ | — | | | $ | — | | | $ | — | |
VALUATION ALLOWANCE FOR DEFERRED TAX | | $ | (13,033,096.00 | ) | | $ | — | | | $ | (13,033,096.00 | ) |
DEFERRED TAX ASSETS | | $ | 13,033,096.00 | | | $ | — | | | $ | 13,033,096.00 | |
| | | | | | | | | | | | |
TOTAL ASSETS | | $ | 344,774,463.61 | | | $ | — | | | $ | 344,774,463.61 | |
| | | | | | | | | | | | |
LIABILITIES AND STOCKHOLDER’S EQUITY | | | | | | | | | | | | |
LIABILITIES: | | | | | | | | | | | | |
ACCRUED EXPENSES | | $ | 61,700.38 | | | $ | — | | | $ | 61,700.38 | |
ACCRUED INVESTMENT EXPENSES | | $ | 21,918.48 | | | $ | — | | | $ | 21,918.48 | |
ACCRUED ADMINISTRATIVE FEES | | $ | 42,580.65 | | | | | | | $ | 42,580.65 | |
ACCRUED CEDING FEES | | $ | 286,143.90 | | | $ | — | | | $ | 286,143.90 | |
PREMIUM TAX PAYABLE | | $ | — | | | $ | — | | | $ | — | |
FEDERAL INCOME TAX PAYABLE (RECEIVABLE) | | $ | — | | | $ | — | | | $ | — | |
ALLOWANCE FOR DOUBTFUL ACCOUNTS | | $ | — | | | $ | — | | | $ | — | |
CONTINGENT LIABILITY | | $ | 4,000,000.00 | | | $ | — | | | $ | 4,000,000.00 | |
INTEREST PAYABLE | | $ | — | | | $ | — | | | $ | — | |
UNEARNED PREMIUMS | | $ | 401,086.70 | | | $ | — | | | $ | 401,086.70 | |
LOSSES PAYABLE | | $ | 5,079,666.14 | | | $ | — | | | $ | 5,079,666.14 | |
LOSS RESERVES | | $ | 122,566,100.52 | | | $ | — | | | $ | 122,566,100.52 | |
IBNR | | $ | 6,220,708.14 | | | $ | — | | | $ | 6,220,708.14 | |
CONTINGENCY RESERVES | | $ | 47,972,874.20 | | | $ | (47,972,874.20 | ) | | $ | — | |
| | | | | | | | | | | | |
TOTAL LIABILITIES | | $ | 186,652,779.11 | | | $ | (47,972,874.20 | ) | | $ | 138,679,904.91 | |
| | | | | | | | | | | | |
STOCKHOLDER’S EQUITY: | | | | | | | | | | | | |
CAPITAL STOCK | | $ | 1,000.00 | | | $ | — | | | $ | 1,000.00 | |
PAID — IN CAPITAL | | $ | 16,659,348.80 | | | $ | — | | | $ | 16,659,348.80 | |
ADDITIONAL PAID — IN CAPITAL | | $ | 53,219,568.39 | | | $ | — | | | $ | 53,219,568.39 | |
UNREALIZED GAIN/LOSS ON INVESTMENTS | | $ | — | | | $ | — | | | $ | — | |
CONTINGENCY RESERVES | | $ | (47,972,874.20 | ) | | $ | 47,972,874.20 | | | $ | — | |
DIVIDENDS PAID | | $ | (250,000.00 | ) | | | | | | $ | (250,000.00 | ) |
RETAINED EARNINGS (ACCUMULATED DEFICIT) | | $ | 130,885,963.67 | | | $ | — | | | $ | 130,885,963.67 | |
NET INCOME (LOSS) — YEAR TO DATE | | $ | 5,578,677.84 | | | $ | — | | | $ | 5,578,677.84 | |
| | | | | | | | | | | | |
TOTAL STOCKHOLDER’S EQUITY | | $ | 158,121,684.50 | | | $ | 47,972,874.20 | | | $ | 206,094,558.70 | |
| | | | | | | | | | | | |
TOTAL LIABILITIES & STOCKHOLDER’S EQUITY | | $ | 344,774,463.61 | | | $ | — | | | $ | 344,774,463.61 | |
| | | | | | | | | | | | |
WM MORTGAGE REINSURANCE COMPANY INC.
UNAUDITED FINANCIAL STATEMENTS
COMBINING PROFIT & LOSS STATEMENT
FOR THE PERIOD ENDED MARCH 31, 2012
| | | | | | | | |
| | | MONTH TO
DATE | | | YEAR TO
DATE | |
UNDERWRITING INCOME: | | | | | | | | |
ASSUMED PREMIUMS WRITTEN | | $ | 2,330,582.46 | | | $ | 7,141,294.60 | |
CHANGE IN UNEARNED PREMIUMS | | $ | 18,476.50 | | | $ | 54,850.01 | |
| | | | | | | | |
NET PREMIUMS EARNED | | $ | 2,349,058.96 | | | $ | 7,196,144.61 | |
| | | | | | | | |
UNDERWRITING EXPENSES: | | | | | | | | |
LOSSES PAID | | $ | 5,120,233.15 | | | $ | 14,850,746.12 | |
PROVISION FOR LOSS RESERVES | | $ | (2,406,710.41 | ) | | $ | (9,906,252.13 | ) |
PROVISION FOR IBNR | | $ | 192,321.07 | | | $ | (326,221.34 | ) |
CEDING COMMISSION | | $ | 286,143.90 | | | $ | 885,169.55 | |
PREMIUM TAX EXPENSE | | $ | — | | | $ | — | |
| | | | | | | | |
TOTAL UNDERWRITING EXPENSES | | $ | 3,191,987.71 | | | $ | 5,503,442.20 | |
| | | | | | | | |
UNDERWRITING INCOME (LOSS) | | $ | (842,928.75 | ) | | $ | 1,692,702.41 | |
| | | | | | | | |
GENERAL & ADMINISTRATIVE EXPENSES: | | | | | | | | |
MANAGEMENT FEES | | $ | 19,774.86 | | | $ | 46,340.30 | |
ACTUARY CONSULTING FEES | | $ | 22,500.00 | | | $ | 67,500.00 | |
AUDIT FEES | | $ | — | | | $ | — | |
LEGAL FEES | | $ | 3,946.94 | | | $ | 16,744.27 | |
ADMINISTRATIVE FEES | | $ | 42,580.65 | | | $ | 42,580.65 | |
LICENSE AND FEES | | $ | — | | | $ | 300.00 | |
TRAVEL AND ENTERTAINMENT | | $ | — | | | $ | — | |
BANK SERVICE FEES | | $ | — | | | $ | — | |
MISCELLANEOUS EXPENSES | | $ | — | | | $ | — | |
| | | | | | | | |
TOTAL GENERAL & ADMINISTRATIVE EXPENSES | | $ | 88,802.45 | | | $ | 173,465.22 | |
| | | | | | | | |
INTEREST EXPENSE | | $ | — | | | $ | — | |
IINTEREST INCOME | | $ | 1,080.70 | | | $ | 3,902.35 | |
AMORTIZATION — COMMERCIAL PAPER | | $ | — | | | $ | — | |
INVESTMENT INCOME — MUNICIPAL BONDS | | $ | — | | | $ | — | |
INVESTMENT INCOME — CORPORATE BONDS | | $ | 496,796.66 | | | $ | 1,466,495.61 | |
INVESTMENT INCOME — MBS BONDS | | $ | 72,713.22 | | | $ | 222,838.59 | |
INVESTMENT INCOME — US AGENCY | | $ | 290,490.61 | | | $ | 889,053.39 | |
INVESTMENT INCOME — US TREASURY | | $ | 79.41 | | | $ | 233.10 | |
INVESTMENT INCOME — FOREIGN ISSUE | | $ | 93,540.68 | | | $ | 295,334.15 | |
BOND AMORTIZATION — MUNICIPAL BONDS | | $ | — | | | $ | — | |
BOND AMORTIZATION — CORPORATE BONDS | | $ | (136,702.49 | ) | | $ | (387,923.62 | ) |
BOND AMORTIZATION — MBS BONDS | | $ | (537.49 | ) | | $ | (1,160.72 | ) |
BOND AMORTIZATION — US AGENCY | | $ | (46,604.12 | ) | | $ | (127,486.18 | ) |
BOND AMORTIZATION — US TREASURY | | $ | (11.65 | ) | | $ | (34.65 | ) |
BOND AMORTIZATION — FOREIGN ISSUE | | $ | (37,847.13 | ) | | $ | (93,265.88 | ) |
INVESTMENT EXPENSE | | $ | (21,918.48 | ) | | $ | (21,918.48 | ) |
GAIN/LOSS ON SALE OF INVESTMENT | | $ | (13,292.76 | ) | | $ | 168,503.61 | |
FAS 159 GAIN ON TRADING SECURITIES | | $ | (735,991.47 | ) | | $ | 1,644,869.38 | |
| | | | | | | | |
NET INVESTMENT INCOME | | $ | (38,204.31 | ) | | $ | 4,059,440.65 | |
| | | | | | | | |
LEGAL SETTLEMENT | | $ | — | | | $ | — | |
INCOME (LOSS) BEFORE TAX PROVISION | | $ | (969,935.51 | ) | | $ | 5,578,677.84 | |
CURRENT FEDERAL INCOME TAX (BENEFIT) EXPENSE | | $ | — | | | $ | — | |
PROVISION FOR DOUBTFUL INCOME TAX RECEIVABLE | | $ | — | | | $ | — | |
DEFERRED FEDERAL INCOME TAX (BENEFIT) EXPENSE | | $ | (340,356.00 | ) | | $ | 1,952,481.00 | |
CHANGE IN VALUATION ALLOWANCE | | $ | 340,356.00 | | | $ | (1,952,481.00 | ) |
| | | | | | | | |
FEDERAL INCOME TAX EXPENSE | | $ | — | | | $ | — | |
NET INCOME (LOSS) | | $ | (969,935.51 | ) | | $ | 5,578,677.84 | |
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