UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly Report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the quarterly period ended June 30, 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: 0-22663
BANDO McGLOCKLIN CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)
Wisconsin 39-1364345
(State or other jurisdiction of (I.R.S. Employer
incorporation) Identification No.)
W239 N1700 Busse Road
P.O. Box 190 53072-0190
Pewaukee, Wisconsin (Zip Code)
(Address of principal executive
offices)
Registrant's telephone number, including area code: (414) 523-4300
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 ___
On August 12, 1997 there was 3,689,102 shares outstanding of the
Registrant's common stock, 6 2/3 cents par value.
BANDO McGLOCKLIN CAPITAL CORPORATION
FORM 10-Q INDEX
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheet as of June 30, 1997 and
December 31, 1996 . . . . . . . . . . . . . . . . . . . . . 3-4
Consolidated Statement of Operations - For the Three
and Six Months Ended June 30, 1997 and 1996 . . . . . . . . . 5
Consolidated Statement of Cash Flows - For the Six
Months Ended June 30, 1997 and 1996 . . . . . . . . . . . . 6-7
Notes to the Consolidated Financial Statements . . . . . . 8-9
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations . . . . . . . . . . . 10-14
PART II. OTHER INFORMATION
Item 1. Legal Proceedings . . . . . . . . . . . . . . . . . . . . . 15
Item 2. Changes in Securities . . . . . . . . . . . . . . . . . . . 15
Item 3. Defaults Upon Senior Securities . . . . . . . . . . . . . . 15
Item 4. Submission of Matters to a Vote of Security Holders . . . . 15
Item 5. Other Information . . . . . . . . . . . . . . . . . . . . . 15
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . 15
Signatures . . . . . . . . . . . . . . . . . . . . . . . . 16
Exhibit Index . . . . . . . . . . . . . . . . . . . . . . . 17
BANDO McGLOCKLIN CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
June 30, 1997 December 31, 1996
(Unaudited) (Unaudited)
ASSETS
Loans $128,495,986 $69,468,291
Loan-backed certificates - 1,988,056
Land 295,002 369,577
Less: reserve for loan losses (450,000) (450,000)
Less: retained loan discount (270,670) (1,482,657)
---------- ---------
Investments 128,070,318 69,893,267
Excess servicing asset 282,787 1,555,231
Short-term securities 2,450,000 -
Investment in swap contracts at
market value 227,025 444,257
Accounts receivable (net of
allowance of $5,367
and $16,245, respectively) 2,021,263 1,176,025
Inventory 2,377,412 1,827,170
Interest receivable 1,186,565 1,348,860
Cash 1,086,235 1,337,556
Fixed assets (net of accumulated
depreciation of $620,970 and
$541,791, respectively) 1,833,094 1,419,930
Other assets 1,224,727 727,001
----------- ----------
Total Assets $140,759,426 $79,729,297
=========== ==========
BANDO McGLOCKLIN CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET (Continued)
June 30, 1997 December 31, 1996
(Unaudited) (Unaudited)
LIABILITIES, MINORITY INTEREST,
PREFERRED STOCK AND SHAREHOLDERS'
EQUITY
Commercial Paper $24,809,703 $21,768,394
Notes payable to banks 7,500,000 9,700,000
---------- ----------
Short-term borrowings 32,309,703 31,468,394
State of Wisconsin Investment Board
note payable 6,333,333 6,666,667
Loan participations with repurchase
options 62,719,358 5,348,619
Accounts payable 908,115 565,803
Other notes payable 24,435 29,469
Other liabilities 3,446,443 2,286,050
----------- -----------
Total Liabilities 105,741,387 46,365,002
----------- ----------
Minority interest in subsidiaries 1,162,649 598,211
Preferred stock, 1 cent par value,
3,000,000 shares authorized,
674,791 shares issued and
outstanding after deducting 15,209
shares in treasury 16,908,025 16,908,025
Shareholders' Equity
Common Stock, 6 2/3 cents par
value, 15,000,000 shares
authorized, 3,990,100 and
3,955,744 shares issued and
outstanding, before deducting
shares in treasury,
respectively 266,006 263,716
Additional paid-in capital 19,741,189 19,498,326
Retained earnings/(deficit) 792,681 (641,370)
Treasury stock, at cost (312,438
and 266,650 shares,
respectively) (3,852,511) (3,262,613)
----------- -----------
Total Shareholders' Equity 16,947,365 15,858,059
----------- -----------
Total Liabilities, Minority
Interest, Preferred Stock and
Shareholders' Equity $140,759,426 $79,729,297
=========== ===========
BANDO McGLOCKLIN CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
Three Months Ended Six Months Ended
June 30 June 30
1997 1996 1997 1996
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues:
Interest on loans $2,740,923 $1,885,452 $5,173,510 $3,860,165
Net sales of manufacturing
subsidiaries 4,625,296 381,430 7,654,936 653,357
Interest on short-term
securities 16,613 16,529 29,889 32,379
Premium (expense) income 8,270 60,306 (60,457) 65,984
Other income 601,839 229,886 637,477 315,113
------------- ------------- -------------- ------------
Total Revenues 7,992,941 2,573,603 13,435,355 4,926,998
Expenses:
Interest expense 1,633,667 598,255 2,897,983 1,300,986
Cost of goods sold of
Manufacturing subsidiaries 2,421,389 213,146 4,058,523 430,415
Salaries and employee benefits 497,455 360,858 963,894 687,832
Change in appreciation on
investment swaps 84,176 333,388 217,232 358,455
Realized (gains) losses - (140) - 15,926
Other operating expenses 1,150,793 643,463 1,943,199 1,000,431
----------- ---------- ----------- -----------
Total Expenses 5,787,480 2,148,970 10,080,831 3,794,045
----------- ---------- ----------- -----------
Net operating income before
income taxes and minority
interest 2,205,461 424,633 3,354,524 1,132,953
----------- ---------- ----------- -----------
Provision for income taxes (461,983) - (694,056) -
Minority interest in earnings of
Subsidiaries (391,972) - (564,438) -
----------- ---------- ----------- -----------
Net Income $1,351,506 $424,633 $2,096,030 $1,132,953
=========== ========== =========== ===========
Net Income Per Common Share $0.37 $0.11 $0.57 $0.30
Weighted Average Shares
Outstanding 3,698,556 3,717,318 3,707,295 3,755,596
=========== ========== =========== ===========
BANDO McGLOCKLIN CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
Six Months Ended
June 30, 1997 June 30, 1996
(Unaudited) (Unaudited)
Cash Flows from Operating
Activities
Net income $2,096,030 $1,132,953
Loans made (24,973,379) (19,484,289)
Principal collected on loans 17,580,922 8,897,629
Loans sold - 13,024,035
Premium expense (income) - net 60,457 (65,984)
Loans purchased (49,647,182) -
Other adjustments to reconcile
net income to net cash (used)
provided by operating
activities:
Change in appreciation on
investment swaps 217,232 358,455
Amortization 48,944 25,196
Depreciation 79,179 1,595
Change in minority interest
in subsidiaries 564,438 -
Increase (decrease) in cash due
to changes in:
Accounts receivable (845,238) (117,861)
Inventory (550,242) 19,173
Interest receivable 162,295 (74,156)
Other assets (546,670) (31,392)
Accounts payable 342,312 208,444
Other liabilities 1,160,393 (839,932)
----------- -----------
Net Cash (Used) Provided by
Operations (54,250,509) 3,053,866
----------- -----------
Cash Flows from Investing
Activities:
Purchase of fixed assets (492,343) (198,221)
Real Estate sold 74,575 777,213
Purchase of short-term
securities (2,625,000) (1,060,255)
Proceeds from maturity of
securities 175,000 1,063,778
Acquisition of Middleton Doll - 400,325
----------- ------------
Net Cash (Used) Provided by
Investing Activities (2,867,768) 982,840
----------- ------------
BANDO McGLOCKLIN CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS (Continued)
Six Months Ended
June 30, 1997 June 30, 1996
(Unaudited) (Unaudited)
Cash Flows from Financing Activities:
Increase in short-term borrowings $841,309 $1,628,675
Proceeds from loan participations
with repurchase options - net 57,370,739 3,983,990
Repayment of SWIB note (333,334) (6,666,667)
Decrease in other notes payable (5,034) -
Dividends paid (661,979) (1,802,302)
Proceeds from exercise of stock
options 245,153 -
Repurchase of common stock (589,898) (1,462,318)
---------- ----------
Net Cash Provided (Used) in Financing
Activities 56,866,956 (4,318,622)
----------- -----------
Net decrease in cash (251,321) (281,916)
Cash, beginning of period 1,337,556 1,008,847
---------- ----------
Cash, end of period $1,086,235 $726,931
========== ===========
BANDO McGLOCKLIN CAPITAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1 NATURE OF BUSINESS
Bando McGlocklin Capital Corporation (the "Company"), was incorporated in
February 1980 and provides long-term secured loans to finance the growth,
expansion and modernization of small businesses.
On March 26, 1993, the Company completed the formation of a holding
company structure by transferring substantially all of its assets and
liabilities to Bando McGlocklin Small Business Lending Corporation
("BMSBLC"), a wholly owned subsidiary of the Company. At the close of the
day on December 31, 1996, BMSLBC surrendered its Small Business
Administration ("SBA") license. BMSBLC continues to provide secured loans
to small business concerns. Prior to January 1, 1997, BMSBLC was known as
Bando McGlocklin Small Business Investment Corporation.
On May 5, 1993, the Company formed Bando McGlocklin Investment Company
("BMIC"), a subsidiary of the Company. In May 1993, a partially developed
real estate parcel was transferred to BMIC. In December 1996 one percent
of the economic interest in BMIC was sold to an unrelated third party. In
January 1997, this one percent interest was sold to an officer of the
Company, and he was given 100% of the voting stock of BMIC by the Company.
In 1997, BMSBLC contributed it's ownership interest in Lee Middleton
Original Dolls, Inc. ("Middleton Doll") and License Products, Inc.
("License Products"), both 51% owned subsidiaries engaged in the
manufacturing business to BMIC. The consolidated accounts of the Company
reflect the consolidated financial position and results of operations of
BMIC, Middleton Doll and License Products.
Prior to January 2, 1997, the Company and BMSBLC were registered as
investment companies under the Investment Company Act of 1940 ("1940
Act"). Effective January 2, 1997, the Company and BMSBLC deregistered as
investment companies under the 1940 Act. The Company continues to operate
as a registrant under the Securities Act of 1933, but now reports under
the Securities Exchange Act of 1934 ("1934 Act"). The financial position
as of December 31, 1996 and the results of operations for the three months
and six months ended June 30, 1996 and cash flows for the six months ended
June 30, 1996 have been restated as if the Company had always reported
under the 1934 Act. Under the 1940 Act, the investments in BMIC,
Middleton Doll and License Products were accounted for as common stock
investments and stated at "fair value" as determined in good faith by the
Board of Directors. Under the 1934 Act, these three subsidiaries are
consolidated. Since 1993, the Company only owned 49% of Middleton Doll.
The acquisition of the additional 2% of Middleton Doll was completed at
the end of June 1996. Prior to this acquisition, Middleton Doll was
accounted for on the equity method.
During 1996 the Company changed its year-end from June 30 to December 31.
In 1997, the Company intends to capitalize a bank holding company and then
spin-off the bank holding company in a common share distribution to
Company shareholders. After the Company distributes its shares in the
bank holding company to shareholders, the principal business of the
Company will be to manage its loan portfolio and to participate in loans
with third party loan originators.
NOTE 2 - BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements of Bando
McGlocklin Capital Corporation (the "Company") and its majority-owned
subsidiaries have been prepared in accordance with the instructions to
Form 10-Q and do not include all of the other information and disclosures
required by generally accepted accounting principles. These statements
should be read in conjunction with the unaudited consolidated financial
statements and notes thereto for the quarter ended March 31, 1997 included
in the Company's Quarterly Report on Form 10-Q for that period.
The accompanying consolidated financial statements have not been audited
by independent accountants in accordance with generally accepted auditing
standards, but in the opinion of management such financial statements
include all adjustments, consisting only of normal recurring accruals,
necessary to summarize fairly the Company's financial position and results
of operations. The results of operations for the six months ended June
30, 1997 may not be indicative of the results that may be expected for the
year ending December 31, 1997.
NOTE 3 SFAS 128
In February 1997 the Financial Accounting Standards Board issued Statement
of Accounting Standards No. 128, Earnings Per Share ("SFAS 128"), which
will be effective for financial statements issued after December 15, 1997.
The current primary/fully diluted earnings per share ("EPS") under APB No.
15 will be replaced with a new basic/diluted EPS calculation that is
intended to provide greater consistency and comparability. It is not
anticipated that the effects of SFAS 128 on the Company will be material.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
General
Amounts presented for the 1997 reporting period and at December
31, 1996 include the consolidation of the operations of the
following companies: Bando McGlocklin Capital Corporation (the
"Company"); Bando McGlocklin Small Business Lending Corporation
("BMSBLC"), a 100% owned subsidiary of the Company; Bando
McGlocklin Investment Corporation ("BMIC"), a 99%-owned
subsidiary of the Company; Lee Middleton Original Dolls, Inc.
("Middleton Doll") and License Products, Inc. ("License
Products"), 51%-owned subsidiaries of BMIC. The June 30, 1996
reporting period includes the consolidation of the operations of
the following companies: the Company; BMSBLC and BMIC, 100%-
owned subsidiaries of the Company; Middleton Doll and License
Products, 51%-owned subsidiaries of the Company. Since 1993 the
Company only owned 49% of Middleton Doll. The acquisition of an
additional two percent of Middleton Doll was completed at the end
of June 1996. Prior to this acquisition, Middleton Doll was
accounted for on the equity method.
The 1996 reporting period reflects the Company's financial
statements on a restated basis. Prior to January 2, 1997 the
Company and BMSBLC were registered investment companies therefore
they did not consolidate BMIC, Middleton Doll and License
Products, which were not registered investment companies. The
1997 and 1996 consolidated financial position and results of
operations and cash flows include the accounts of the Company and
its 51% or greater owned subsidiaries and are offset by the
minority interest in BMIC's, Middleton Doll's and License
Products's ownership.
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
The Company's net income after income taxes and minority interest
increased 218% to $1.4 million for the quarter ended June 30,
1997 compared to $0.4 million for the same period of last year.
Total revenues for the quarter ended June 30, 1997 increased 211%
to $8.0 million from $2.5 over the corresponding prior year
period. This increase is primarily due to the consolidation of
Middleton Doll's sales of $4.3 million for the quarter ended June
30, 1997. The acquisition of an additional two percent of
Middleton Doll was completed at the end of June 1996; previously
it was accounted for on the equity method and was not
consolidated in the financial statements. Interest on loans
increased $0.9 million as a result of the Company repurchasing
loans that were previously sold to a third party. This increase
in interest income is offset by increased interest expense. The
average loans under management increased $1.0 million to $134.4
million for the quarter ended June 30, 1997 from $133.4 million
for the quarter ended June 30, 1996. The increase in interest
income as a result of the increase in prime of .25% during March
1997 was completely offset by the decreasing yield on the
portfolio of loans due to the market's competitive pricing. The
remaining $0.3 million increase in total revenues was a result of
receiving $0.5 million from an executive's life insurance policy
where BMCC was the beneficiary in the second quarter of 1997
offset by a decrease of $0.1 million in commitment fees and $0.1
million in management fees that were recorded for the quarter
ended June 30, 1996. Both the commitment fees and the management
fees were non-recurring income for 1996.
Total operating expenses for the quarter ended June 30, 1997
increased 169% to $5.8 million from $2.1 million over the
corresponding prior period. $2.9 million of the increase is the
result of consolidating Middleton Doll's operations. Interest
expense increased 173% to $1.6 million from $0.6 million for
the quarters ended June 30, 1997 and 1996, respectively.
Interest expense increased by $0.9 million as a result of the
repurchase of loans by BMSBLC that had been previously sold.
Those repurchased loans were funded with new debt. This
repurchase had no impact on net operating income as both interest
income and interest expense increased by the same amount.
Interest expense, which is offset by swap income, increased by
$0.1 million because of a decline in swap income due to LIBOR
rates increasing as a result of prime rate increasing. Lastly,
the expense resulting from the decline in unrealized appreciation
on investment swaps, which are marked-to-market, decreased $0.2
million for the quarter ending June 30, 1997.
The Company's consolidated net income has been reduced by the
minority interest ownership in the net earnings of BMIC and
Middleton Doll, which have been consolidated by the Company. The
minority interest in earnings of subsidiaries equaled $0.4
million for the quarter ended June 30, 1997. Also the Company's
June 30, 1997 consolidated net income for the quarter has been
reduced by $0.4 million as a provision of income taxes for
Middleton Doll.
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
The Company's net income after income taxes and minority interest
increased 85% to $2.1 million for the six months ended June 30,
1997 compared to $1.1 million for the same period of last year.
Total revenues for the six months ended June 30, 1997 increased
173% to $13.4 million from $4.9 over the corresponding prior year
period. This increase is primarily due to the consolidation of
Middleton Doll's sales of $7.0 million for the six months ended
June 30, 1997. The acquisition of an additional two percent of
Middleton Doll was completed at the end of June 1996; previously
it was accounted for on the equity method and was not
consolidated in the financial statements. Interest on loans
increased $1.3 million as a result of the Company repurchasing
loans that were previously sold to a third party. This increase
in interest income is offset by increased interest expense. The
average loans under management increased $4.2 million to $135.5
million for the six months ended June 30, 1997 from $131.3
million for the six months ended June 30, 1996. The increase in
interest income as a result of the new loan growth and the
increase in prime as of the end of March 1997 was completely
offset by the decreasing yield on the portfolio of loans due to
the market's competitive pricing. The remaining $0.2 million
increase in total revenues was a result of receiving $0.5 million
from an executive's life insurance policy where BMCC was the
beneficiary during the second quarter of 1997 offset by a
decrease of $0.1 million in commitment fees, $0.1 million in
management fees and $0.1 million in premium income that were
recorded for the six months ended June 30, 1996. Both the
commitment fees and the management fees were non-recurring income
for 1996.
.
Total operating expenses for the six months ended June 30, 1997
increased 166% to $10.1 million from $3.8 million over the
corresponding prior period. $5.1 million of the increase is the
result of consolidating Middleton Doll's operations. License
Products' operating expenses decreased by $0.3 million.
Interest expense increased 123% to $2.9 million from $1.3 million
for the six months ended June 30, 1997 and 1996, respectively.
Interest expense increased by $1.3 million as a result of the
repurchase of loans by BMSBLC that had been previously sold.
Those repurchased loans were funded with new debt. This
repurchase had no impact on net operating income as both interest
income and interest expense increased by the same amount.
Interest expense, which is offset by swap income, increased by
$0.3 million because of a decline in swap income due to LIBOR
rates increasing as a result of the prime rate increasing and the
Company continues to grow its investments in mortgage loans by
utilizing leverage. Average loans increased $4.2 million in the
current six month period over the corresponding prior period.
Lastly, the expense resulting from the decline in unrealized
appreciation on investment swaps, which are marked-to-market,
decreased $0.1 million for the six months ending June 30, 1997.
The Company's consolidated net income has been reduced by the
minority interest ownership in the net earnings of BMIC and
Middleton Doll, which have been consolidated by the Company.
The minority interest in earnings of subsidiaries equaled $0.6
million for the six months ended June 30, 1997. Also the
Company's June 30, 1997 consolidated net income for the six
months has been reduced by $0.6 million as a provision of income
taxes for Middleton Doll.
LIQUIDITY AND CAPITAL RESOURCES
Total investment in loans and loan-backed certificates on the
balance sheet increased by $57.0 million, or 80% to $128.5 million
at June 30, 1997 from $71.5 million at December 31, 1996. During
the first and second quarter of 1997 the Company repurchased $49.6
million of loans previously sold to a third party and made new
loans of $25.0 million. The Company also collected $17.6 million
of principal payments on loans on the balance sheet and collected
$9.2 million of principal payments on loans that were sold to
third parties. The Company's loans under management decreased to
$136.6 million as of June 30, 1997 from $138.4 million as of
December 31, 1996. The increase in loans on the balance sheet
was primarily financed through secured borrowings.
Cash and short-term securities increased to $3.5 million at June
30, 1997 from $1.3 million at December 31, 1996.
The Company's total consolidated indebtedness at June 30, 1997
increased 133% to $101.4 million from $43.5 million as of
December 31, 1996. The Company, as of June 30, 1997, had $69.1
million outstanding in long-term debt and $32.3 million
outstanding in short-term borrowings and as of December 31, 1996,
had $12.0 million outstanding in long-term debt and $31.5 million
outstanding in short-term borrowings. The increase of $57.9
million is primarily the result of repurchasing loans previously
sold to third parties.
To the extent Middleton Doll has ongoing capital expenditure
needs, management believes those expenditures can be funded
through cash generated from operations.
The Company's board of directors has approved capitalizing
InvestorsBancorp, Inc., a bank holding company with approximately
$6.2 million and distributing to the Company's shareholders all
of its outstanding shares of InvestorsBancorp. InvestorsBancorp
is a proposed bank holding company organized to own all of the
capital stock of InvestorsBank (the "Bank"), a Wisconsin-
chartered bank. It is management's belief that the Company has
enough capital to invest approximately $6.2 million in
InvestorsBancorp and continue to operate the Company.
The Company began exploring the idea of opening a bank in 1994
when management noticed that banks and other traditional
financial institutions were beginning to enter the Company's
markets, by providing commercial real estate loans to small
businesses. This competition for commercial real estate loans
has had an adverse effect on the Company's margins. It was
decided a bank could compete more effectively based upon its
lower cost of funds.
After the Company distributes its shares in InvestorsBancorp to
shareholders, the principal business of the Company will be to
manage its loan portfolio and participate in new loans with third
party loan originators, including the Bank and possibly other
banks. The Company is also exploring the expansion of its real
estate lending business into ownership of real property including
related buildings and improvements for lease to small businesses.
The Company anticipates that adequate cash will be available to
fund loans and new investments.
All employees of the Company will terminate their employment with
the Company to become employees of the Bank, except for certain
executive officers who will be employees of both the Company and
the Bank. The Company and the Bank will enter into a Management
Services and Allocation of Operating Expenses Agreement (the
"Agreement"). The effect of such agreement will be to reduce the
level of operating expenses in the Company. The investment of
approximately $6.2 million in capital is expected to lower the
Company's operating income. Management is unable to measure the
net impact of the Agreement and the capitalization of
InvestorsBancorp on net operating income.
Statements included in this filing concerning the Company's
future prospects are "forward looking statements" under the
Federal securities laws. There can be no assurance that future
results will be achieved and actual results could differ
materially from forecasts and estimates.
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
The Company is not a defendant in any material pending legal
proceeding and no such material proceedings are known to be
contemplated.
Item 2. CHANGES IN SECURITIES
No material changes have occurred in the securities of the
Registrant.
Item 3. DEFAULTS UPON SENIOR SECURITIES
Not Applicable
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
Item 5. OTHER INFORMATION
None
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) List of Exhibits
The Exhibits to this Quarterly Report on Form 10-Q are
identified on the Exhibit Index hereto.
(b) Reports on Form 8-K
No reports on Form 8-K were filed by the Company during
the quarter ended June 30, 1997.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunder duly authorized.
BANDO McGLOCKLIN CAPITAL
CORPORATION
(Registrant)
/s/ George R. Schonath
Date: August 14, 1997 George R. Schonath
Chairman of the Board, Chief
Executive Officer and Chief
Financial Officer
BANDO McGLOCKLIN CAPITAL CORPORATION
QUARTERLY REPORT ON FORM 10-Q
EXHIBIT INDEX
Exhibit
Number Exhibit
4 Second Amendment to Amended and Restated Loan Agreement
dated May 14, 1997 by and among Firstar Bank Milwaukee,
N.A.
10 Loan Participation Certificate and Agreement dated May 1,
1997, by and between Bando McGlocklin Small Business
Lending Corporation and Security Bank, SSB
11 Statement Regarding Computation of Per Share Earnings
27 Financial Data Schedule (EDGAR version only)