1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
[X] Annual Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 [Fee Required]
For the fiscal year ended December 31, 1995
[ ] Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 [No Fee Required]
For the Transition period from ------------------- to ---------------
Commission File No. 811-2750
FKF, Inc.
(Exact name of registrant as specified in its charter)
Iowa 42-1083346
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Boatmen's Bank Building
317 Sixth Avenue, 3rd Floor
Des Moines, Iowa 50309
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code: 515/235-7134
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: None
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, and (2) has been subject to
such filing requirements for the past 90 days. Yes X No
----- -----
Indicate by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K (Section 299.405 of this chapter) is not
contained herein, and will not be contained, to the best of
registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K [X]
The aggregate market value of the voting stock held by non-affiliates
of the registrant as of February 28, 1995:
None
The number of shares outstanding of the issuer's classes of common
stock as of February 28, 1995:
Common Stock, $1 Par Value - 250,000
OMISSION OF INFORMATION BY CERTAIN WHOLLY-OWNED SUBSIDIARIES:
REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTIONS
J(1)(a) AND (b) OF FORM 10-K AND IS THEREFORE FILING THIS FORM WITH
THE REDUCED DISCLOSURE FORMAT.
DOCUMENTS INCORPORATED BY REFERENCE
None
2
TABLE OF CONTENTS
Item Page No.
---- --------
PART I
- - ------
Item 1. Business ......................................................2
-------
Item 2. Properties ...................................................2
-------
Item 3. Legal Proceeding .............................................2
-------
Item 4. Submission of Matters to a Vote of Security Holders ...........3
-------
PART II
- - -------
Item 5. Market for Registrant's Common Stock and Related Security
------- Holder Matters ..............................................3
Item 6. Selected Financial Data ........................................3
-------
Item 7. Management's Discussion and Analysis of Financial Condition
------- and Results of Operations ....................................3-4
Item 8. Financial Statements and Supplementary Data ....................4
-------
Item 9. Changes in and Disagreements with Accountants on Accounting
------- and Financial Disclosure .....................................4
PART III
- - --------
Item 10. Directors and Executive Officers of Registrant ................4
--------
Item 11. Executive Compensation .......................................4
--------
Item 12. Security Ownership of Certain Beneficial Owners and
-------- Management ..................................................4
Item 13. Certain Relationships and Related Transactions ...............5
--------
PART IV
- - -------
Item 14. Exhibits, Financial Statement Schedules and Reports on
-------- Form 8-K ....................................................5-6
SIGNATURES 7
- - ----------
1
3
PART I
ITEM 1. BUSINESS
- - ------- --------
Registrant, a registered face-amount certificate company under the
Investment Company Act of 1940 (the "40 Act"), was formed on May 17,
1977. On August 11, 1977, First Kansas Financial, Inc. ("First
Kansas") merged with and into Central National Bancshares, Inc., an
Iowa multi-bank holding company, pursuant to an Agreement and Plan of
Reorganization dated March 15, 1977, and amended as of April 19, 1977,
and June 21, 1977, (the "Agreement").
As provided in the Agreement, First Kansas formed a wholly-owned
subsidiary, FKF, Inc. ("Registrant"), to assume the obligations of
First Kansas to its face-amount certificate holders. Immediately
prior to consummation of the merger, First Kansas transferred to
Registrant assets and certificate reserves in an amount in excess of
its face-amount certificate liabilities, and Registrant assumed all
liabilities of First Kansas to its face-amount certificate holders.
An order of de-registration was issued on August 14, 1977, SEC release
number 9905, terminating the registration of First Kansas under
Section 8(f) of the 40 Act.
On April 16, 1981, Central National Bancshares, Inc. changed its
name to United Central Bancshares, Inc. Subsequently, on June 24,
1985, United Central Bancshares, Inc. changed its name to First
Interstate of Iowa, Inc. pursuant to a franchise agreement entered
into with First Interstate Bancorp, Los Angeles, California. On April
1, 1992, First Interstate of Iowa, Inc. merged with and into Boatmen's
Bancshares of Iowa, Inc. ("BBII"), a wholly-owned subsidiary of
Boatmen's Bancshares, Inc. BBII is considered to be Registrant's
Parent.
First Kansas was the successor in reorganization to First Home
Investment Corporation of Kansas, Inc. ("FHI"), which company was in
a Chapter X reorganization proceeding in the United States District
Court for the District of Kansas (Case #24075-B-2) from April 24,
1973, to April 26, 1976. FHI was the original issuer of all of the
face-amount certificates assumed by Registrant. No face-amount
certificates have been issued by FHI or any successor of FHI since
March 31, 1973.
Under the 40 Act, a company issuing face-amount certificates is
required to maintain reserves at a level not less than the surrender
value of outstanding certificates. While Registrant is not engaged in
the issuance of face-amount certificates, it does maintain deposits of
cash and investments of a kind which are qualified investments for
face-amount certificate companies as defined in Section 28 of the 40
Act. The deposits are maintained at a level not less than the
surrender value of the outstanding certificates. Such deposits of
qualified assets are presently maintained with a Des Moines, Iowa bank
and with the State of Illinois.
Registrant does not consider either financial information about
industry segments or information as to lines of business to be
applicable since Registrant exists for the sole purpose of performing
the obligations of First Kansas to holders of face-amount certificates
issued by FHI.
Registrant does not intend to issue any face-amount certificates
and will be liquidated when all the currently outstanding face-amount
certificates are paid.
Registrant has no materially important assets other than cash and
securities.
ITEM 2. PROPERTIES
- - ------- ----------
Registrant's offices are located with the principal offices of
BBII. Registrant does not lease any offices or property and does not
own any real estate.
ITEM 3. LEGAL PROCEEDINGS
- - ------- -----------------
Registrant is not aware of any legal proceedings or actions to
which Registrant is a party or to which any of the assets of
Registrant are subject.
2
4
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
- - ------- ---------------------------------------------------
Not applicable under the reduced disclosure rules.
PART II
ITEM 5. MARKET FOR REGISTRANT'S COMMON STOCK AND RELATED SECURITY
- - ------- ---------------------------------------------------------
HOLDER MATTERS
--------------
Registrant is a wholly-owned subsidiary of BBII. There is not a
principal market for the trading of the common stock of Registrant,
and the information requested by this item with respect to trading of
the shares and price quotations is not applicable to Registrant.
There are no restrictions that would prohibit the payment of
dividends out of retained earnings. Registrant has declared and paid
dividends amounting to $0 in 1995, $30,000 in 1994 and $0 in 1993.
ITEM 6. SELECTED FINANCIAL DATA
- - ------- -----------------------
Not applicable under the reduced disclosure rules.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS
- - ------- ------------------------------------------------------------
AND RESULTS OF OPERATIONS
-------------------------
Liquidity. The outstanding face-amount certificates of Registrant
---------
may be redeemed, with certain exceptions, at the request of the
certificates' holders. The redemptions of such certificates are
funded by the income stream of Registrant, from conversion of assets,
and if such should be required, from borrowing.
The assets of Registrant consist of securities which qualify under
the Code of the District of Columbia or under such other rules of the
Securities and Exchange Commission as being of a kind in which
insurance companies are permitted to invest. Such assets are selected
for investment to mature at such frequencies and in such amounts so as
to coincide with the level of anticipated redemption requirements.
Management can not, however, predict with certainty the level of
redemptions, and it is possible for redemption requests to occur in
amounts in excess of Registrant's immediate ability to fund such
redemptions without the sale of assets (potentially at a loss
dependent upon the prevailing market values and other pertinent
factors).
In general, Registrant does not intend to borrow in order to fund
redemption requirements, but does retain the right to do so in the
event prevailing circumstances cause management to conclude such
action would be prudent and in the best interests of Registrant.
Capital Resources. Registrant, other than its obligations to fund
-----------------
the redemption of face-amount certificates, to pay management fees to
BBII equal to one percent of the average outstanding face-amount
certificate liability and to pay certain expenses incurred directly by
Registrant, does not have outstanding commitments of a material nature
which would adversely affect Registrant's capital resources.
Results of Operations - Earnings Analysis, 1995 vs. 1994. Net
--------------------------------------------------------
income increased $3,000 in 1995, or 27.3%, to $14,000, up from $11,000
in 1994. The increase was primarily attributable to reductions in
data processing expense, audit fees and the reversal of an overaccrual
for additional credit expense for 1994 and 1995.
For 1995, the average rate earned on average qualified investment
securities was 6.5%, compared to 6.2% in 1994. Interest income on
investment securities was down $1,000 in 1995, or 1.0%, to $101,000,
compared to $102,000 in 1994. Investment expense (consisting of
management fees) remained constant at $13,000 for both 1995 and 1994.
3
5
The provision for certificate reserves was $66,000 in 1995,
compared to $65,000 in 1994. The provision consists of amounts called
for by the terms of the outstanding certificates plus amounts credited
under the Additional Credit policy of Registrant.
Other operating income increased in 1995 by $3,000, to $3,000, up
from $0 in 1994. Other operating expenses decreased $4,000 in 1995,
or 36.4%, to $7,000, down from $11,000 in 1994.
On a per share basis, net income was $.05 for 1995, a 25% increase
from the $.04 earned in 1994.
Results of Operations - Earnings Analysis, 1994 vs. 1993. Net
--------------------------------------------------------
income decreased $3,000 in 1994, or 21.4%, to $11,000, down from
$14,000 in 1993. The decrease was attributable to lower yields on the
reinvested proceeds of matured or called investments and to a lower
average balance of investment securities.
For 1994, the average rate earned on average qualified investment
securities was 6.2%, compared to 6.9% in 1993. Interest income on
investment securities was down $26,000 in 1994, or 20.3%, to $102,000,
compared to $128,000 in 1993. Investment expense (consisting of
management fees and interest expense on a short-term note payable
incurred to BBII) decreased $7,000 in 1994, or 35.0%, to $13,000, down
from $20,000 in 1993.
The provision for certificate reserves was $65,000 in 1994,
compared to $90,000 in 1993. The provision consists of amounts called
for by the terms of the outstanding certificates plus amounts credited
under the Additional Credit policy of Registrant.
Other operating income decreased in 1994 by $5,000, or 100%, to $0,
down from $5,000 in 1993. Other operating expenses increased $3,000
in 1994, or 37.5%, to $11,000, up from $8,000 in 1993.
On a per share basis, net income was $.04 for 1994, a 20% decrease
from the $.05 earned in 1993.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
- - ------- -------------------------------------------
The financial statements of Registrant for the years 1995, 1994 and
1993 are submitted herewith on pages 9 through 17.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
- - ------- ---------------------------------------------
ON ACCOUNTING AND FINANCIAL DISCLOSURE
--------------------------------------
None
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF REGISTRANT
- - -------- ----------------------------------------------
Not applicable under the reduced disclosure rules.
ITEM 11. EXECUTIVE COMPENSATION
- - -------- ----------------------
Not applicable under the reduced disclosure rules.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
- - -------- -----------------------------------------------
AND MANAGEMENT
--------------
Not applicable under the reduced disclosure rules.
4
6
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
- - -------- ----------------------------------------------
Not applicable under the reduced disclosure rules.
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON
- - -------- ------------------------------------------------------
FORM 8-K
---------
(a) (1) The following financial statements and independent
auditor's report of Registrant are included in Item
8:
Page No.
--------
Independent Auditors' Report - Ernst & Young LLP 8
Balance Sheets - December 31, 1995 and 1994 9
Statements of Operations - Years Ended December
31, 1995, 1994 and 1993 10
Statements of Changes in Shareholder's Equity -
Years Ended December 31, 1995, 1994 and 1993 11
Statements of Cash Flows - Years Ended December
31, 1995, 1994 and 1993 12
Notes to Financial Statements 13-17
(a) (2) The following financial statement schedules are included
in Item 14(d):
Page No.
--------
Schedule I - Investments in Securities of Unaf-
filiated Issuer - December 31, 1995 18
Schedule V - Qualified Assets on Deposit -
December 31, 1995 19
Schedule XI - Certificate Reserves - Years Ended
December 31, 1995, 1994 and 1993 20-33
Other financial statement schedules required by Article 6 of
Regulation S-X are not required under the related
instructions or are inapplicable, and therefore have been
omitted.
(a) (3) Listing of Exhibits - The following documents are filed
-------------------
as exhibits to this report or are incorporated by
reference by specific reference to previous filings
with the Commission:
Exhibit No.
-----------
(3) Articles of Incorporation and Bylaws of Registrant
are on file with the Commission as exhibits to
Registrant's Form N-8B-4 Report filed on October
25, 1977, which documents are hereby incorporated
by reference.
(4) Copies of or specimen copies of each of the
outstanding face-amount certificates, that being
Series 20, 20L, 20LA, 27 and 27A, and a copy of an
order of the United States District Court for the
District of Kansas, dated May 2, 1977, are on file
with the Commission as exhibits to Registrant's
Form N-8B-4 Report filed on October 25, 1977,
which documents are hereby incorporated by
reference.
(10) A copy of the Depositary Agreement, dated October
23, 1962, as supplemented and assigned, is on file
with the Commission as an exhibit to Registrant's
Form N-8B-4 Report filed on October 25, 1977, and
a copy of the Second Amendment to the
5
7
Depositary Agreement dated November 6, 1981, is
filed as an exhibit to the 1981 Form 10-K dated
March 16, 1982, which documents are hereby
incorporated by reference.
(13) Registrant's Annual Report to Shareholder consists
of the financial statements submitted herewith on
pages 8 through 17.
(16) A copy of the letter regarding the change in
certifying accountants dated March 18, 1993, is on
file with the Commission as an exhibit to
Registrant's Form 8-K filed on March 18, 1993,
which document is hereby incorporated by
reference.
(b) Reports on Form 8-K - Registrant did not file a report on
-------------------
Form 8-K during the fourth quarter of 1995.
(c) Exhibits - The response to this portion of Item 14 is
--------
submitted as a separate section of this report on page 34.
(d) Financial Statement Schedules - The financial statement
-----------------------------
schedules of Registrant are submitted herewith on pages 18 through
33.
6
8
SIGNATURES
Pursuant to the requirements of Section 13 and 15(d) of the Securities
Exchange Act of 1934, Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
FKF, Inc.
Date: March 29, 1996 By: /s/ Howard R. Harris II
----------------------- -----------------------------------
Howard R. Harris, President, CEO, Treasurer
and Director
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of Registrant
and in the capacities and on the dates indicated.
Date
----
March 29, 1996 By: /s/ Howard R. Harris II
- - ------------------- ---------------------------------------
Howard R. Harris II, President, CEO, Treasurer and Director
March 29, 1996 By: /s/ Daniel J. Fliger
- - ------------------- ---------------------------------------
Daniel J. Fliger, Secretary and Director
March 29, 1996 By: /s/ Kelly Swinton
- - ------------------- ---------------------------------------
Kelly Swinton, Controller
7
9
Report of Independent Auditors
The Board of Directors and Shareholder
FKF, Inc.
We have audited the accompanying balance sheets of FKF, Inc. as of December
31, 1995 and 1994 and the related statements of operations, changes in
shareholder's equity, and cash flows for each of the three years in the
period ended December 31, 1995. Our audit also included the financial
statement schedules listed in the Index at Item 14(a). These financial
statements and schedules are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements and schedules based on our audits.
We conducted our audits 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 audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of FKF, Inc. at December 31,
1995 and 1994, and the results of its operations and its cash flows for each
of the three years in the period ended December 31, 1995, in conformity with
generally accepted accounting principles. Also, in our opinion, the related
financial statement schedules, when considered in relation to the basic
financial statements taken as a whole, present fairly in all material
respects the information set forth therein.
St. Louis, Missouri By: /s/ Ernst & Young LLP
March 27, 1996 -------------------------
8
10
BALANCE SHEETS
FKF, INC.
December 31
1995 1994
------------ -------------
QUALIFIED ASSETS--Note B and Schedule V
Cash $ 521 $ 309
Interest and other receivables 20,450 20,017
Investment securities--Note B and Schedule I:
Held-to-maturity securities 49,800 102,962
Available-for-sale securities 1,533,652 1,540,369
------------ -------------
Total investment securities 1,583,452 1,643,331
Deferred federal income taxes payable -- 11,606
Other -- 344
Current federal income taxes receivable from
parent company 1,216 --
------------ -------------
$ 1,605,639 $ 1,675,607
============ =============
CERTIFICATE RESERVES, LIABILITIES AND
SHAREHOLDER'S EQUITY
Certificate reserves--Note C and Schedule XI:
Installment payment certificates $ 48,807 $ 70,676
Single payment certificates 613,659 668,365
Unapplied advance payments on
installment certificates 19,239 25,060
Additional amounts accrued or credited--
Note D 595,811 644,670
------------ -------------
1,277,516 1,408,771
Current liabilities:
Deferred federal income taxes payable 8,808 --
Current federal income taxes payable to
parent company -- 435
Other 525 33
------------ -------------
9,333 468
CURRENT RESERVES AND ------------ -------------
CURRENT LIABILITIES 1,286,849 1,409,239
Shareholder's Equity:
Common Stock, par value $1--authorized
4,000,000 shares; issued and outstanding
250,000 shares (all owned by Boatmen's
Bancshares of Iowa, Inc.) 250,000 250,000
Paid-in surplus 12,906 12,906
Retained earnings 38,655 25,015
Net unrealized holding gains (losses) on
available-for-sale securities 17,229 (21,553)
------------ -------------
318,790 266,368
------------ -------------
$ 1,605,639 $ 1,675,607
============ =============
See notes to financial statements 9
11
STATEMENTS OF OPERATIONS
FKF, INC.
Years Ended December 31
1995 1994 1993
---------- ------------ -----------
NET INVESTMENT INCOME
Income on investment securities $ 100,671 $ 102,390 $ 128,348
Management fees to parent company (12,706) (13,416) (18,463)
Interest expense on short-term note payable -- -- (1,093)
---------- ------------ -----------
87,965 88,974 108,792
---------- ------------ -----------
PROVISION FOR CERTIFICATE RESERVES--Note D
Specified interest credited to reserves 25,181 27,120 31,699
Provision for additional credits to reserves 41,194 38,054 58,250
---------- ------------ -----------
66,375 65,174 89,949
---------- ------------ -----------
NET INVESTMENT INCOME LESS PROVISION
FOR CERTIFICATE RESERVES 21,590 23,800 18,843
---------- ------------ -----------
OTHER OPERATING INCOME
Surrender charges -- -- 36
Securities gains 151 -- 613
Miscellaneous 2,620 -- 4,347
---------- ------------ -----------
2,771 -- 4,996
---------- ------------ -----------
OTHER OPERATING EXPENSE
Professional fees -- 1,000 1,300
Registration fees 250 250 250
Miscellaneous 7,138 9,827 6,260
---------- ------------ -----------
7,388 11,077 7,810
---------- ------------ -----------
INCOME BEFORE INCOME TAXES 16,973 12,723 16,029
INCOME TAXES--Note E 3,333 1,826 2,442
---------- ------------ -----------
NET INCOME $ 13,640 $ 10,897 $ 13,587
========== ============ ===========
Net income per share $ 0.05 $ 0.04 $ 0.05
========== ============ ===========
See notes to financial statements
10
12
STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY
FKF, INC.
Adjustment
to Unrealized
Gains (Losses)
Common Paid-in Retained on AFS
Stock Surplus Earnings Securities Total
------ ------- -------- ------------- ---------
BALANCE AT JANUARY 1, 1993 $ 250,000 $ 12,906 $ 30,531 -- $ 293,437
Net Income -- -- 13,587 -- 13,587
-------------- ------------------ ----------- ---------------- ------------
BALANCE AT DECEMBER 31, 1993 250,000 12,906 44,118 -- 307,024
Net Income -- -- 10,897 -- 10,897
Change in unrealized gains
(losses) on available-for-
sale securities, net of
income taxes of $11,606 -- -- -- (21,553) (21,553)
Cash dividend declared-$0.12 per
share -- -- (30,000) -- (30,000)
-------------- ------------------ ----------- ---------------- ------------
BALANCE AT DECEMBER 31, 1994 $ 250,000 $ 12,906 $ 25,015 $ (21,553) $ 266,368
Net Income -- -- 13,640 -- 13,640
Change in unrealized gains
(losses) on available-for-
sale securities, net of
income taxes of $(20,414) -- -- -- 38,782 38,782
-------------- ------------------ ----------- ---------------- ------------
BALANCE AT DECEMBER 31, 1995 $ 250,000 $ 12,906 $ 38,655 $ 17,229 $ 318,790
============== ================== =========== ================ ============
See notes to financial statements
11
13
STATEMENTS OF CASH FLOWS
FKF, INC.
Years Ended December 31
1995 1994 1993
----------- ----------- -----------
Net Income $ 13,640 $ 10,897 $ 13,587
Operating Activities:
Adjustments to reconcile net income to net
cash provided by operating activities:
Realized investment securities (gain) (151) -- (613)
Provision for reserves 66,142 66,802 88,496
Accretion of investment securities discounts (6,956) (7,757) (4,015)
(Increase) Decrease in accrued interest (433) (2,968) 2,908
Increase (Decrease) in current liabilities 57 (1,324) (159)
Increase (Decrease) in other assets (872) (42) (302)
----------- ----------- -----------
Net Cash Provided by Operating Activities 71,427 65,608 99,902
----------- ----------- -----------
Investing Activities:
Proceeds from maturities of available-for-sale
investment securities 1,029,975 1,305,758 892,038
Purchase of available-for-sale investment
securities (903,792) (1,204,679) (633,837)
----------- ----------- -----------
Net Cash Provided by Investing Activities 126,183 101,079 258,201
----------- ----------- -----------
Financing Activities
Cash dividends paid -- (30,000) --
Payments for redemption of face-amount
certificates (197,398) (136,857) (357,783)
Proceeds from short-term borrowings -- -- 100,000
Principal payment on short-term borrowings -- -- (100,000)
----------- ----------- -----------
Net Cash Used by Financing Activities (197,398) (166,857) (357,783)
----------- ----------- -----------
Increase (Decrease) in Cash and
Cash Equivalents 212 (170) 320
Cash and cash equivalents at beginning of year 309 479 159
----------- ----------- -----------
Cash and Cash Equivalents at End of Year $ 521 $ 309 $ 479
=========== =========== ===========
Supplemental Disclosure of Cash Flow
Information - Cash Paid During the Year
for Income Taxes $ 4,983 $ 1,090 $ 3,569
=========== =========== ===========
See notes to financial statements
12
14
NOTES TO FINANCIAL STATEMENTS
FKF, INC.
NOTE A--SIGNIFICANT ACCOUNTING POLICIES
Organization: FKF, Inc., a wholly-owned subsidiary of Boatmen's
- - ------------
Bancshares of Iowa, Inc. ("BBII"), is a face-amount certificate
investment company as defined by Section 28 of the Investment
Company Act of 1940. The Company was formed for the sole purpose
of assuming the liabilities of First Kansas Financial, Inc. to
holders of its face-amount certificates. First Kansas Financial,
Inc. was the parent company of FKF, Inc. until its merger with and
into BBII, a wholly-owned subsidiary of Boatmen's Bancshares, Inc.
In accordance with this corporate purpose, the Company does not
accept investments in face-amount certificates.
Cash and Cash Equivalents: For purposes of reporting cash flows,
- - -------------------------
cash and cash equivalents include only cash as presented on the
balance sheet.
Investment Securities: Effective December 15, 1995, FKF, Inc.
- - ---------------------
transferred approximately $50,000 of a held to maturity security to
available for sale as permitted under the Statement of Financial
Accounting Standards Board Special Report, "A Guide to
Implementation of Statement 115 on Accounting for Certain
Investments in Debt and Equity Securities" issued in November 1995.
The fair value of such security exceeded the amortized cost by an
immaterial amount, and the after-tax increase to Stockholder's
Equity was immaterial as well. The transfer had no effect on 1995
earnings.
Debt securities are classified as held-to-maturity when the Company
has the positive intent and ability to hold the securities to
maturity. Held-to-maturity securities are stated at cost adjusted
for accretion of discounts and amortization of premiums compiled by
the straight-line method. Such amortization, interest and
dividends are included in Income on Investment Securities.
Realized gains and losses, and declines in value judged to be
other-than-temporary are included in securities gains (losses).
The cost of securities sold are determined on a specific
identification basis.
Debt securities not classified as held-to-maturity and marketable
equity securities are classified as available-for-sale. Available-
for-sale securities are stated at fair value, with the unrealized
gains and losses, net of tax, reported in a separate component of
shareholders' equity.
Face-Amount Certificate Reserves: Face-amount certificate reserves
- - --------------------------------
are stated at the amount computed in accordance with the provisions
of the respective certificates and Section 28 of the Investment
Company Act of 1940.
Income Taxes: The Company's taxable income is included in the
- - ------------
consolidated income tax returns of Boatmen's Bancshares, Inc. The
Company provides for income taxes as if separate returns are filed
and remits to the parent company amounts that are currently
payable.
Management Fees: Management fees are charged by BBII for services
- - ---------------
provided to the Company. Annual fees are computed at the rate of
one percent of the average outstanding balance of face-amount
certificate reserves.
Use of Estimates: The preparation of financial statements in
- - ----------------
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the
amounts reported in the financial statements and accompanying
notes. Actual results could differ from those estimates.
13
15
NOTES TO FINANCIAL STATEMENTS (continued)
FKF, INC.
Net Income Per Share: Net income per share amounts are based on
- - --------------------
the weighted average number of common shares outstanding during the
year.
NOTE B--QUALIFIED ASSETS
Under the provisions of its face-amount certificates and the
Investment Company Act of 1940, the Company is required to have
cash and qualified investments (as defined in Section 28(b) of the
Act) with a value not less than the aggregate amount of the
$250,000 capital stock requirement and the face-amount certificate
reserves. At December 31, 1995, the company had qualified assets
of $1,605,639 which exceeded the amount of qualified assets
required under the Act of $1,527,516.
The average taxable equivalent rates of return for each type of
investment security owned by the Company are as follows:
1995 1994 1993
---- ---- ----
U. S. Treasury Notes 7.4% 8.3% 8.3%
Other Bonds 6.3% 6.3% 6.6%
Other Securities 7.1% 5.6% 8.0%
As provided by the face-amount certificates, the Company must
maintain qualified assets equal to the face-amount certificate
reserves at a depositary as security for the performance of its
obligations. At December 31, 1995, $1,557,415 of investment
securities (at amortized cost) were on deposit at the Brenton Bank,
N.A. and with the State of Illinois to satisfy these requirements.
The following is a summary of held-to-maturity securities and
available-for-sale securities at December 31, 1995:
Held-To-Maturity Securities
-------------------------------------------------
Gross Gross
Amortized Unrealized Unrealized Market
Cost Gains Losses Value
--------- ---------- ---------- ------
Other debt securities $ 49,800 $ 443 $ -- $ 50,243
============ ========== =========== ===========
Available-For-Sale Securities
-----------------------------------------------
Gross Gross
Amortized Unrealized Unrealized Market
Cost Gains Losses Value
--------- ---------- ---------- ------
U.S. Treasury securities and
obligations of U.S.
Government agencies $ 49,655 $ 870 $ -- $ 50,525
Other debt securities 1,323,703 10,831 (563) 1,333,971
Equity securities 134,257 17,555 (2,656) 149,156
---------- --------- ---------- -----------
$1,507,615 $ 29,256 $ (3,219) $ 1,533,652
========== ========= ========== ===========
14
16
NOTES TO FINANCIAL STATEMENTS (continued)
FKF, INC.
The following is a summary of held-to-maturity securities and
available-for-sale securities at December 31, 1994:
Held-To-Maturity Securities
-------------------------------------------------
Gross Gross
Amortized Unrealized Unrealized Market
Cost Gains Losses Value
---------- ---------- ---------- ----------
U.S. Treasury securities and
obligations of U.S.
Government agencies $ 53,162 $ 200 $ -- $ 53,362
Other debt securities 49,800 -- (3,231) 46,569
---------- ---------- ---------- ----------
$ 102,962 $ 200 $ (3,231) $ 99,931
========== ========== ========== ==========
Available-For-Sale Securities
-------------------------------------------------
Gross Gross
Amortized Unrealized Unrealized Market
Cost Gains Losses Value
---------- ---------- ---------- ----------
Other debt securites $1,186,768 $ -- $ (25,799) $1,160,969
Equity securities 386,760 -- (7,360) 379,400
---------- ---------- ---------- ----------
$1,573,528 $ -- $ (33,159) $1,540,369
========== ========== ========== ==========
The amortized cost and market value of debt securities at December
31, 1995 by contractual maturity are as follows:
Amortized Market
Cost Value
----------- ----------
Held-to-maturity securities:
Due after five through ten years $ 49,800 $ 50,243
=========== ==========
Amortized Market
Cost Value
----------- ----------
Available-for-sale securities:
Due in one year or less $ 432,971 $ 432,533
Due after one year through five years 940,387 951,963
Due after five years through ten years -- --
Due after ten years -- --
----------- ----------
1,373,358 1,384,496
Equity securities 134,257 149,156
----------- ----------
$ 1,507,615 $1,533,652
=========== ==========
Total investment securities $ 1,557,415 $1,583,895
=========== ==========
15
17
NOTES TO FINANCIAL STATEMENTS (continued)
FKF, INC.
NOTE C--CERTIFICATE RESERVES
At December 31, 1995, the carrying value of face-amount certificate
reserves, by type of certificate, and annual rates of accumulation
thereon were as follows:
Carrying Accumulation
Value Rate
----------- ------------
Installment payment certificates:
Series 20 $ 0 3-1/4%
Series 20L 28,705 3-1/8%
Series 20LA 20,102 3-1/8%
-----------
48,807
Single payment certificates:
Series 27 594,664 3-1/2%
Series 27A 18,995 3-1/2%
-----------
613,659
Unapplied advance payments on
installment certificates 19,239 3-1/8%
Additional amounts accrued or credited 595,811
-----------
$ 1,277,516
Redemptions of outstanding face-amount certificates, as provided by
the respective certificates, totaled $197,398 and $136,857 during
the years ended December 31, 1995 and 1994, respectively.
Under the provisions of Series 20LA and 27A face-amount
certificates, the Company is required to maintain a special share
reserve with a depositary consisting of all shares of Boatmen's
Bancshares, Inc. common stock of certificate holders which have
been purchased under the terms of their certificates. At
December 31, 1995, 1,210 shares of common stock of Boatmen's
Bancshares, Inc. were on deposit with Brenton Bank, N.A. Dividends
paid on such shares of common stock are credited to the reserves
and unapplied payments of the corresponding face-amount
certificates.
NOTE D--ADDITIONAL AMOUNTS ACCRUED OR CREDITED
The income earned by the Company from the investment of funds
derived solely from the assets comprising face-amount certificate
reserves, after allowance for taxes, are applied: first, to the
payment of the stated rate of interest set forth in the face-amount
certificates; second, to the payment of annual management fees
equal to one percent of the average outstanding balance of face-
amount certificate reserves; third, to additional credits up to
four percent of the face-amount certificate reserves; and fourth,
the remainder of said income, if any, is divided equally between
the Company and said face-amount certificate holders.
16
18
NOTES TO FINANCIAL STATEMENTS (continued)
FKF, INC.
NOTE E--INCOME TAXES
The reasons for the difference between income tax expense and the
amount computed by applying the statutory Federal income tax rate,
35%, before income taxes were:
1995 1994 1993
------- ------- -------
Provision at statutory rate $ 5,941 $ 4,453 $ 5,610
Effect of non-taxable interest income ( 897) ( 897) ( 897)
Effect of non-taxable dividend income (1,711) (1,730) (2,271)
------- ------- -------
$ 3,333 $ 1,826 $ 2,442
======= ======= =======
17
19
Schedule I
FKF, Inc.
Investments in Securities of Unaffiliated Issuers
December 31, 1995
Number of
Shares or
Principal
Amount of
Bonds and Market Market
Name of Issuer and Title of Issue Notes Cost Adjustment Value
---------------------------------------------------------- ----------- ----------- ---------- -----------
HELD-TO-MATURITY SECURITIES
Other Bonds:
Public Housing Authority, Cook County,
Illinois, 5.125% due May 1, 2005 $ 50,000 $ 49,800 $ 443 $ 50,243
----------- ---------- -----------
Total Held-to-Maturity Securities 49,800 443 50,243
----------- ---------- -----------
AVAILABLE-FOR-SALE SECURITIES
U.S. Treasury Notes:
5.875%, due August 15, 1998 50,000 49,655 870 50,525
Other Bonds:
Federal Agency, FHLB 4.31%, due February 14, 1996 200,000 200,000 (563) 199,437
Federal Agency, FHLB 5.87%, due June 26, 1998 350,000 349,908 2,389 352,297
Federal Agency, FNMA 5.375%, due June 10, 1998 300,000 290,892 6,764 297,656
Federal Agency, SLMA 3.77%, due July 16, 1997 250,000 249,932 1,553 251,485
Federal Agency, SLMA variable rate, due October 22, 1996 100,000 100,000 125 100,125
----------- ---------- -----------
1,190,732 10,268 1,201,000
Other Securities:
Preferred Stocks:
Cleveland Electric Illuminating, 7.40% 250 21,406 (2,656) 18,750
Florida Power and Light Company, 7.28% 300 25,237 6,112 31,349
GTE of California, 7.48% 180 16,020 2,070 18,090
Gulf States Utilities, 8.80% 135 12,756 906 13,662
Northern States Power, 7.00% 220 18,233 3,768 22,001
Tampa Electric, 8.00% 230 21,850 1,811 23,661
Texas Utilities Power Co., 7.20% 220 18,755 2,888 21,643
----------- ---------- -----------
134,257 14,899 149,156
Short-term U.S. Government Securities:
Brenton Money Market 132,971 132,971 N/A 132,971
----------- ---------- -----------
Total Available-for-Sale Securities 1,507,615 26,037 1,533,652
----------- ---------- -----------
TOTAL INVESTMENT SECURITIES $ 1,557,415 $ 26,480 $ 1,583,895
=========== ========== ===========
<FN>
Note 1 Generally, market value is determined on the last business day of the year by using either the last reported sales price,
the mean between the last quoted bid and asked prices, or if quotations are not available, management's best estimate
of the fair value.
Note 2 Held-to-maturity securities are stated at cost, while Available-for-sale securities are stated at market value.
Note 3 The aggregate cost for Federal income tax purposes is $1,557,415
18
20
Schedule V
FKF, Inc.
Qualified Assets on Deposit
December 31, 1995
First Mortgages
and Other First
Investment Liens on Real
Name of Depository Cash Securities Estate Other Total
------------------- ----------- -------------- --------------- --------- --------------
Brenton Bank, N.A $ 521 $ 1,507,760 $ -- $ -- $ 1,508,281
State of Illinois -- 49,655 -- -- 49,655
----------- -------------- ---------------- --------- --------------
$ 521 $ 1,557,415 $ -- $ -- $ 1,557,936
=========== ============== ================ ========= ==============
19
21
Schedule XI
FKF, Inc.
Certificate Reserves
Year Ended December 31, 1995
Balance at Beginning of Year Additions
--------------------------------------- ---------------------------------------
Amount Reserve Charged
Number of Amount Charged Payments by to
of Maturity of to Certificate Other
Description Accounts Value Reserves Income Holders Accounts
- - ----------------- ---------- ---------- ---------- --------- ------------- ----------
Series 20
installment
payment
face-amount
certifcates (2.52%
yield to maturity):
Monthly Payments
1-12 $ $ $ $ $
13-24
25-36
37-48
49-60
61-72
73-84
85-96
Paid-up 6 249 488 11
---------- ---------- ---------- --------- ----------- ----------
Total Certificates 6 249 488 11
Additional Credits 426 426 18
---------- ---------- ---------- --------- ----------- ----------
Total 6 $ 675 $ 914 $ 29 $ $
========== ========== ========== ========= =========== ==========
Deductions Balance at End of Year
------------------------------------------------- ---------------------------------------
Cash Amount
Surrenders Cancellations Number of Amount
Prior and of Maturity of
Maturities to Maturity Withdrawals Accounts Value Reserves
------------ ------------- ---------------- ---------- ---------- ----------
Series 20
installment
payment
face-amount
certifcates (2.52%
yield to maturity):
Monthly Payments
1-12 $ $ $ $ $ $
13-24
25-36
37-48
49-60
61-72
73-84
85-96
Paid-up 499
------------ ---------- ---------- --------- --------- ----------
Total Certificates 499
Additional Credits 444
------------ ---------- ---------- --------- --------- ----------
Total $ 943 $ $ $ 0 $ 0 $ 0
============ ========== ========== ========= ========= ==========
20
22
Schedule XI (continued)
FKF, Inc.
Certificate Reserves
Year Ended December 31, 1994
Balance at Beginning of Year Additions
--------------------------------------- ---------------------------------------
Amount Reserve Charged
Number of Amount Charged Payments by to
of Maturity of to Certificate Other
Description Accounts Value Reserves Income Holders Accounts
- - ----------------- ---------- ---------- ---------- --------- ------------- ----------
Series 20
installment
payment
face-amount
certifcates (2.52%
yield to maturity):
Monthly Payments
1-12 $ $ $ $ $
13-24
25-36
37-48
49-60
61-72
73-84
85-96
Paid-up 6 249 473 15
---------- ---------- ---------- --------- ----------- ----------
Total Certificates 6 249 473 15
Additional Credits 390 390 36
---------- ---------- ---------- --------- ----------- ----------
Total 6 $ 639 $ 863 $ 51 $ $
========== ========== ========== ========= =========== ==========
Deductions Balance at End of Year
------------------------------------------------- ---------------------------------------
Cash Amount
Surrenders Cancellations Number of Amount
Prior and of Maturity of
Maturities to Maturity Withdrawals Accounts Value Reserves
------------ ------------- ---------------- ---------- ---------- ----------
Series 20
installment
payment
face-amount
certifcates (2.52%
yield to maturity):
Monthly Payments
1-12 $ $ $ $ $ $
13-24
25-36
37-48
49-60
61-72
73-84
85-96
Paid-up 6 249 488
------------ ---------- ---------- --------- --------- ----------
Total Certificates 6 249 488
Additional Credits 426 426
------------ ---------- ---------- --------- --------- ----------
Total $ $ $ $ 6 $ 675 $ 914
============ ========== ========== ========= ========= ==========
21
23
Schedule XI (continued)
FKF, Inc.
Certificate Reserves
Year Ended December 31, 1993
Balance at Beginning of Year Additions
--------------------------------------- ---------------------------------------
Amount Reserve Charged
Number of Amount Charged Payments by to
of Maturity of to Certificate Other
Description Accounts Value Reserves Income Holders Accounts
- - ----------------- ---------- ---------- ---------- --------- ------------- ----------
Series 20
installment
payment
face-amount
certifcates (2.52%
yield to maturity):
Monthly Payments
1-12 $ $ $ $ $
13-24
25-36
37-48
49-60 1 5,000 1,376
61-72
73-84
85-96 1 7,000 3,503 114
Paid-up 14 1,396 2,846 85
---------- ---------- ---------- --------- ----------- ----------
Total Certificates 16 13,396 7,725 199
Additional Credits 5,262 5,262 467
---------- ---------- ---------- --------- ----------- ----------
Total 16 $ 18,658 $ 12,987 $ 666 $ $
========== ========== ========== ========= =========== ==========
Deductions Balance at End of Year
------------------------------------------------- ---------------------------------------
Cash Amount
Surrenders Cancellations Number of Amount
Prior and of Maturity of
Maturities to Maturity Withdrawals Accounts Value Reserves
------------ ------------- ---------------- ---------- ---------- ----------
Series 20
installment
payment
face-amount
certifcates (2.52%
yield to maturity):
Monthly Payments
1-12 $ $ $ $ $ $
13-24
25-36
37-48
49-60 1,376
61-72
73-84
85-96 3,617
Paid-up 2,458 6 249 473
------------ ---------- ---------- --------- --------- ----------
Total Certificates 7,451 6 249 473
Additional Credits 5,339 390 390
------------ ---------- ---------- --------- --------- ----------
Total $ 12,790 $ $ $ 6 $ 639 $ 863
============ ========== ========== ========= ========= ==========
22
24
Schedule XI (continued)
FKF, Inc.
Certificate Reserves
Year Ended December 31, 1995
Balance at Beginning of Year Additions
---------------------------------- ---------------------------------
Amount Reserve Charged
Number of Amount Charged Payments by to
of Maturity of to Certificate Other
Description Accounts Value Reserves Income Holders Accounts
----------- -------- -------- -------- ------- ----------- --------
Series 20L installment
face-amount certificates
2.51% yield to maturity):
Monthly Payments
1-12 431 $ 1,013,000 $ 29,107 $ 845 $ $
13-24 44 94,000 9,145 255
25-36 8 11,000 1,938 38
37-48 1 1,000 30 1
Paid-up 133 2,873 5,636 141
------ ----------- ---------- ------ --------- ---------
Total Certificates 617 1,121,873 45,856 1,280
Additional Credits 42,161 42,161 2,472
------ ----------- ---------- ------ --------- ---------
Total 617 $ 1,164,034 $ 88,017 $3,752 $ $
====== =========== ========== ====== ========= =========
Series 20LA installment
face-amount certificates
2.51% yield to maturity):
Monthly Payments
1-12 63 $ 286,000 $ 9,713 $ 266 $ $
13-24 3 26,000 2,958 69
Paid-up 15 3,033 11,660 304
------ ----------- ---------- ------ --------- ---------
Total Certificates 81 315,033 24,331 639
Additional Credits 28,535 28,535 1,744
------ ----------- ---------- ------ --------- ---------
Total 81 $ 343,568 $ 52,866 $2,383 $ $
====== =========== ========== ====== ========= =========
Deductions Balance at End of Year
--------------------------------------- --------------------------------
Cash Amount
Surrenders Cancellations Number of Amount
Prior and of Maturity of
Description Maturities to Maturity Withdrawals Accounts Value Reserves
----------- ---------- ----------- ------------- -------- -------- --------
Series 20L installment
face-amount certificates
2.51% yield to maturity):
Monthly Payments
1-12 $ 7,303 $ $ $ 378 $ 862,000 $ 22,649
13-24 5,303 23 44,000 4,097
25-36 1,976 0 0 0
37-48 0 1 1,000 31
Paid-up 3,849 49 905 1,928
-------- -------- --------- ------- --------- --------
Total Certificates 18,431 451 907,905 28,705
Additional Credits 17,432 27,201 27,201
-------- -------- --------- ------- --------- --------
Total $ 35,863 $ $ $ 451 $ 935,106 $ 55,906
======== ======== ========= ======= ========= ========
Series 20LA installment
face-amount certificates
2.51% yield to maturity):
Monthly Payments
1-12 $ 1,850 $ $ $ 52 $ 229,000 $ 8,129
13-24 703 2 21,000 2,324
Paid-up 2,315 10 2,307 9,649
-------- -------- --------- ------- --------- --------
Total Certificates 4,868 64 252,307 20,102
Additional Credits 6,201 24,078 24,078
-------- -------- --------- ------- --------- --------
Total $ 11,069 $ $ $ 64 $ 276,385 $ 44,180
======== ======== ========= ======= ========= ========
23
25
Schedule XI (continued)
FKF, Inc.
Certificate Reserves
Year Ended December 31, 1994
Balance at Beginning of Year Additions
---------------------------------- ---------------------------------
Amount Reserve Charged
Number of Amount Charged Payments by to
of Maturity of to Certificate Other
Description Accounts Value Reserves Income Holders Accounts
----------- -------- -------- -------- ------- ----------- --------
Series 20L installment
face-amount certificates
2.51% yield to maturity):
Monthly Payments
1-12 493 $ 1,188,000 $ 33,408 $ 935 $ $
13-24 50 107,000 10,679 280
25-36 10 22,000 3,624 111
37-48 2 2,000 114 1
Paid-up 147 3,643 6,914 195
------ ----------- ---------- ------ --------- ---------
Total Certificates 702 1,322,643 54,739 1,522
Additional Credits 47,035 47,035 4,088
------ ----------- ---------- ------ --------- ---------
Total 702 $ 1,369,678 $ 101,774 $5,610 $ $
====== =========== ========== ====== ========= =========
Series 20LA installment
face-amount certificates
2.51% yield to maturity):
Monthly Payments
1-12 85 $ 492,000 $ 16,078 $ 365 $ $
13-24 3 26,000 2,870 88
25-36 1 2,000 383
Paid-up 15 3,033 11,313 347
------ ----------- ---------- ------ --------- ---------
Total Certificates 104 523,033 30,644 800
Additional Credits 34,291 34,291 3,035
------ ----------- ---------- ------ --------- ---------
Total 104 $ 557,324 $ 64,935 $3,835 $ $
====== =========== ========== ====== ========= =========
Deductions Balance at End of Year
--------------------------------------- --------------------------------
Cash Amount
Surrenders Cancellations Number of Amount
Prior and of Maturity of
Description Maturities to Maturity Withdrawals Accounts Value Reserves
----------- ---------- ----------- ------------- -------- -------- --------
Series 20L installment
face-amount certificates
2.51% yield to maturity):
Monthly Payments
1-12 $ 5,236 $ $ $ 431 $1,013,000 $ 29,107
13-24 1,814 44 94,000 9,145
25-36 1,797 8 11,000 1,938
37-48 85 1 1,000 30
Paid-up 1,473 133 2,873 5,636
-------- -------- --------- ------- ---------- --------
Total Certificates 10,405 617 1,121,873 45,856
Additional Credits 8,962 42,161 42,161
-------- -------- --------- ------- ---------- --------
Total $ 19,367 $ $ $ 617 $1,164,034 $ 88,017
======== ======== ========= ======= ========== ========
Series 20LA installment
face-amount certificates
2.51% yield to maturity):
Monthly Payments
1-12 $ 6,730 $ $ $ 63 $ 286,000 $ 9,713
13-24 3 26,000 2,958
25-36 383
Paid-up 15 3,033 11,660
-------- -------- --------- ------- ---------- --------
Total Certificates 7,113 81 315,033 24,331
Additional Credits 8,791 28,535 28,535
-------- -------- --------- ------- ---------- --------
Total $ 15,904 $ $ $ 81 $ 343,568 $ 52,866
======== ======== ========= ======= ========== ========
24
26
Schedule XI (continued)
FKF, Inc.
Certificate Reserves
Year Ended December 31, 1993
Balance at Beginning of Year Additions
---------------------------------- ---------------------------------
Amount Reserve Charged
Number of Amount Charged Payments by to
of Maturity of to Certificate Other
Description Accounts Value Reserves Income Holders Accounts
----------- -------- -------- -------- ------- ----------- --------
Series 20L installment
face-amount certificates
2.51% yield to maturity):
Monthly Payments
1-12 607 $ 1,672,153 $ 48,325 $1,318 $ $
13-24 90 209,767 19,709 484
25-36 13 29,000 4,605 135
37-48 5 10,000 2,377 62
Paid-up 182 5,900 10,558 241
------ ----------- ---------- ------ --------- ---------
Total Certificates 897 1,926,820 85,574 2,240
Additional Credits 70,634 70,634 6,577
------ ----------- ---------- ------ --------- ---------
Total 897 $ 1,997,454 $ 156,208 $8,817 $ $
====== =========== ========== ====== ========= =========
Series 20LA installment
face-amount certificates
2.51% yield to maturity):
Monthly Payments
1-12 135 $ 781,405 $ 14,028 $ 603 $ $
13-24 9 38,000 3,983 96
25-36 3 5,000 620 11
Paid-up 36 14,764 32,685 337
------ ----------- ---------- ------ --------- ---------
Total Certificates 183 839,169 51,316 1,047
Additional Credits 54,643 54,643 4,252
------ ----------- ---------- ------ --------- ---------
Total 183 $ 893,812 $ 105,959 $5,299 $ $
====== =========== ========== ====== ========= =========
Deductions Balance at End of Year
--------------------------------------- --------------------------------
Cash Amount
Surrenders Cancellations Number of Amount
Prior and of Maturity of
Description Maturities to Maturity Withdrawals Accounts Value Reserves
----------- ---------- ----------- ------------- -------- -------- --------
Series 20L installment
face-amount certificates
2.51% yield to maturity):
Monthly Payments
1-12 $ 17,731 $ $ $ 481 $1,187,154 $ 31,912
13-24 9,541 50 108,767 10,652
25-36 1,447 8 20,000 3,293
37-48 2,325 2 2,000 114
Paid-up 2,031 161 4,722 8,768
-------- -------- --------- ------- ---------- --------
Total Certificates 33,075 702 1,322,643 54,739
Additional Credits 30,176 47,035 47,035
-------- -------- --------- ------- ---------- --------
Total $ 63,251 $ $ $ 702 $1,369,678 $101,774
======== ======== ========= ======= ========== ========
Series 20LA installment
face-amount certificates
2.51% yield to maturity):
Monthly Payments
1-12 $ 11,194 $ $ $ 75 $ 486,405 $ 3,437
13-24 1,209 3 26,000 2,870
25-36 248 1 2,000 383
Paid-up 9,068 25 8,629 23,954
-------- -------- --------- ------- ---------- --------
Total Certificates 21,719 104 523,034 30,644
Additional Credits 24,604 34,291 34,291
-------- -------- --------- ------- ---------- --------
Total $ 46,323 $ $ $ 104 $ 557,325 $ 64,935
======== ======== ========= ======= ========== ========
25
27
Schedule XI (continued)
FKF, Inc.
Certificate Reserves
Year Ended December 31, 1995
Balance at Beginning of Year Additions
--------------------------------------- ---------------------------------------
Amount Reserve Charged
Number of Amount Charged Payments by to
of Maturity of to Certificate Other
Description Accounts Value Reserves Income Holders Accounts
- - ----------------- ---------- ---------- ---------- --------- ------------- ----------
Series 27 single
payment face-
amount certificates
(3.2% yield to
maturity):
Total Certificates 447 $ 1,240,030 $ 650,412 $ 21,928 $ $
Additional Credits 521,408 521,408 32,278
---------- ----------- ----------- --------- ----------- ----------
Total 447 $ 1,761,438 $ 1,171,820 $ 54,206 $ $
========== =========== =========== ========= =========== ==========
Series 27A single
payment face-
amount investment
annuity certificates
(3.2% yield to
maturity):
Total Certificates 9 $ 13,140 $ 17,951 $ 641 $ $ 757
Additional Credits 12,204 12,204 866
---------- ----------- ----------- --------- ----------- ----------
Total 9 $ 25,344 $ 30,155 $ 1,507 $ $ 757
========== =========== =========== ========= =========== ==========
Deductions Balance at End of Year
------------------------------------------------- ---------------------------------------
Cash Amount
Surrenders Cancellations Number of Amount
Prior and of Maturity of
Maturities to Maturity Withdrawals Accounts Value Reserves
------------ ------------- ---------------- ---------- ---------- ----------
Series 27 single
payment face-
amount certificates
(3.2% yield to
maturity):
Total Certificates $ $ 77,676 $ $ 405 $ 1,124,030 $ 594,664
Additional Credits 63,191 490,495 490,495
---------- ----------- ----------- --------- ----------- ----------
Total $ $ 140,867 $ $ 405 $ 1,614,525 $1,085,159
========== =========== =========== ========= =========== ==========
Series 27A single
payment face-
amount investment
annuity certificates
(3.2% yield to
maturity):
Total Certificates $ $ 354 $ $ 8 $ 12,920 $ 18,995
Additional Credits 228 12,842 12,842
---------- ----------- ----------- --------- ----------- ----------
Total $ $ 582 $ $ 8 $ 25,762 $ 31,837
========== =========== =========== ========= =========== ==========
Note: Additions charged to other accounts represent amounts credited to
certificate reserves from dividends declared by Boatmen's
Bancshares, Inc. upon common stock beneficially owned by face-amount
certificate holders.
26
28
Schedule XI (continued)
FKF, Inc.
Certificate Reserves
Year Ended December 31, 1994
Balance at Beginning of Year Additions
--------------------------------------- ---------------------------------------
Amount Reserve Charged
Number of Amount Charged Payments by to
of Maturity of to Certificate Other
Description Accounts Value Reserves Income Holders Accounts
- - ----------------- ---------- ---------- ---------- --------- ------------- ----------
Series 27 single
payment face-
amount certificates
(3.2% yield to
maturity):
Total Certificates 489 $ 1,365,490 $ 675,312 $ 23,208 $ $
Additional Credits 511,370 511,370 47,754
---------- ----------- ----------- --------- ----------- ----------
Total 489 $ 1,876,860 $ 1,186,682 $ 70,962 $ $
========== =========== =========== ========= =========== ==========
Series 27A single
payment face-
amount investment
annuity certificates
(3.2% yield to
maturity):
Total Certificates 11 $ 16,670 $ 21,451 $ 758 $ $ 471
Additional Credits 14,012 14,012 1,454
---------- ----------- ----------- --------- ----------- ----------
Total 11 $ 30,682 $ 35,463 $ 2,212 $ $ 471
========== =========== =========== ========= =========== ==========
Deductions Balance at End of Year
------------------------------------------------- ---------------------------------------
Cash Amount
Surrenders Cancellations Number of Amount
Prior and of Maturity of
Maturities to Maturity Withdrawals Accounts Value Reserves
------------ ------------- ---------------- ---------- ---------- ----------
Series 27 single
payment face-
amount certificates
(3.2% yield to
maturity):
Total Certificates $ $ 48,108 $ $ 447 $ 1,240,030 $ 650,412
Additional Credits 37,716 521,408 521,408
---------- ----------- ----------- --------- ----------- ----------
Total $ $ 85,824 $ $ 447 $ 1,761,438 $1,171,820
========== =========== =========== ========= =========== ==========
Series 27A single
payment face-
amount investment
annuity certificates
(3.2% yield to
maturity):
Total Certificates $ $ 4,729 $ $ 9 $ 13,140 $ 17,951
Additional Credits 3,262 12,204 12,204
---------- ----------- ----------- --------- ----------- ----------
Total $ $ 7,991 $ $ 9 $ 25,344 $ 30,155
========== =========== =========== ========= =========== ==========
Note: Additions charged to other accounts represent amounts credited to
certificate reserves from dividends declared by Boatmen's
Bancshares, Inc. upon common stock beneficially owned by face-amount
certificate holders.
27
29
Schedule XI (continued)
FKF, Inc.
Certificate Reserves
Year Ended December 31, 1994
Balance at Beginning of Year Additions
--------------------------------------- ---------------------------------------
Amount Reserve Charged
Number of Amount Charged Payments by to
of Maturity of to Certificate Other
Description Accounts Value Reserves Income Holders Accounts
- - ----------------- ---------- ---------- ---------- --------- ------------- ----------
Series 27 single
payment face-
amount certificates
(3.2% yield to
maturity):
Total Certificates 569 $ 1,527,930 $ 765,610 $ 26,269 $ $
Additional Credits 541,977 541,977 58,032
---------- ----------- ----------- --------- ----------- ----------
Total 569 $ 2,069,907 $ 1,307,587 $ 84,301 $ $
========== =========== =========== ========= =========== ==========
Series 27A single
payment face-
amount investment
annuity certificates
(3.2% yield to
maturity):
Total Certificates 13 $ 17,970 $ 21,627 $ 763 $ $ 676
Additional Credits 13,456 13,456 1,590
---------- ----------- ----------- --------- ----------- ----------
Total 13 $ 31,426 $ 35,083 $ 2,353 $ $ 676
========== =========== =========== ========= =========== ==========
Deductions Balance at End of Year
------------------------------------------------- ---------------------------------------
Cash Amount
Surrenders Cancellations Number of Amount
Prior and of Maturity of
Maturities to Maturity Withdrawals Accounts Value Reserves
------------ ------------- ---------------- ---------- ---------- ----------
Series 27 single
payment face-
amount certificates
(3.2% yield to
maturity):
Total Certificates $ $ 116,567 $ $ 489 $ 1,365,490 $ 675,312
Additional Credits 88,639 511,370 511,370
---------- ----------- ----------- --------- ----------- ----------
Total $ $ 205,206 $ $ 489 $ 1,876,860 $1,186,682
========== =========== =========== ========= =========== ==========
Series 27A single
payment face-
amount investment
annuity certificates
(3.2% yield to
maturity):
Total Certificates $ $ 1,615 $ $ 11 $ 16,670 $ 21,451
Additional Credits 1,034 14,012 14,012
---------- ----------- ----------- --------- ----------- ----------
Total $ $ 2,649 $ $ 11 $ 30,682 $ 35,463
========== =========== =========== ========= =========== ==========
Note: Additions charged to other accounts represent amounts credited to
certificate reserves from dividends declared by Boatmen's
Bancshares, Inc. upon common stock beneficially owned by face-amount
certificate holders.
28
30
FKF, Inc. Schedule XI (continued)
-----------------------
Amounts Periodically Credited to Certificate Holders' Accounts
to Accumulate the Maturity Amount of Installment Certificates
Series 20
---------
Amount credited Amount credited to Total credited
Payments made by Less to reserve reserves to mature to reserves Accumulative
Year Certificate holders loading to mature by charges to income to mature total
- - ---- ------------------- ------- --------------- -------------------- -------------- ------------
1st 38.10 19.04 19.06 .62 19.68 19.68
2nd 38.10 2.66 35.44 1.80 37.24 56.92
3rd 38.10 2.66 35.44 3.00 38.44 95.36
4th 38.10 2.66 35.44 4.26 39.70 135.06
5th 38.10 2.66 35.44 5.54 40.98 176.04
6th 38.10 1.52 36.58 6.92 43.50 219.54
7th 38.10 1.52 36.58 8.32 44.90 264.44
8th 38.10 1.52 36.58 9.78 46.36 310.80
9th 38.10 1.52 36.58 11.28 47.86 358.66
10th 38.10 1.52 36.58 12.86 49.44 408.10
11th 38.10 1.52 36.58 14.44 51.02 459.12
12th 38.10 1.52 36.58 16.12 52.70 511.82
13th 38.10 1.52 36.58 17.84 54.42 566.24
14th 38.10 1.52 36.58 19.60 56.18 622.42
15th 38.10 1.52 36.58 21.42 58.00 680.42
16th 38.10 1.52 36.58 23.32 59.90 740.32
17th 38.10 1.52 36.58 25.26 61.84 802.16
18th 38.10 1.52 36.58 27.26 63.84 866.00
19th 38.10 1.52 36.58 29.34 65.92 931.92
20th 38.10 1.52 36.58 31.50 68.08 1,000.00
29
31
FKF, Inc. Schedule XI (continued)
-----------------------
Amounts Periodically Credited to Certificate Holders' Accounts
to Accumulate the Maturity Amount of Installment Certificates
Certificate Series 20L and 20LA per $1,000 Face Amount
------------------------------------------------------
Monthly Payment Basis
---------------------
Annual gross Amount credited Amount credited to Total credited
payments made by Less to reserves reserves to mature to reserves Accumulative
Year certificate holders loading to mature by charges to income to mature total
- - ---- ------------------- ------- --------------- -------------------- -------------- ------------
1st 51.00 5.76 45.24 .77 46.01 46.01
2nd 51.00 5.76 45.24 2.18 47.42 93.43
3rd 51.00 5.76 45.24 3.63 48.87 142.30
4th 51.00 5.76 45.24 5.13 50.37 192.67
5th 51.00 5.76 45.24 6.88 52.12 244.79
6th 51.00 5.76 45.24 8.07 53.31 298.10
7th 51.00 5.76 45.24 9.91 55.15 353.25
8th 51.00 5.76 45.24 11.60 56.84 410.09
9th 51.00 5.76 45.24 13.34 58.58 468.67
10th 51.00 5.76 45.24 15.14 60.38 529.05
11th 51.00 5.76 45.24 16.99 62.23 591.28
12th 51.00 5.76 45.24 18.90 64.14 655.42
13th 51.00 5.76 45.24 20.86 66.10 721.52
14th 51.00 5.76 45.24 22.89 68.13 789.65
15th 51.00 5.76 45.24 24.68 69.92 859.57
16th 26.66 26.66 886.23
17th 27.17 27.17 913.40
18th 28.00 28.00 941.40
19th 28.86 28.86 970.26
20th 29.74 29.74 1,000.00
30
32
FKF, Inc. Schedule XI (continued)
-----------------------
Amounts Periodically Credited to Certificate Holders' Accounts
to Accumulate the Maturity Amount of Installment Certificates
Certificate Series 20L and 20LA per $1,000 Face Amount
------------------------------------------------------
Annual Payment Basis
--------------------
Annual gross Amount credited Amount credited to Total credited
payments made by Less to reserves reserves to mature to reserves Accumulative
Year certificate holders loading to mature by charges to income to mature total
- - ---- ------------------- ------- --------------- -------------------- -------------- ------------
1st 48.00 3.36 44.64 1.37 46.01 46.01
2nd 48.00 3.36 44.64 2.78 47.42 93.43
3rd 48.00 3.36 44.64 4.23 48.87 142.30
4th 48.00 3.36 44.64 5.73 50.37 192.67
5th 48.00 3.36 44.64 7.48 52.12 244.79
6th 48.00 3.36 44.64 8.67 53.31 298.10
7th 48.00 3.36 44.64 10.51 55.15 353.25
8th 48.00 3.36 44.64 12.20 56.84 410.09
9th 48.00 3.36 44.64 13.94 58.58 468.67
10th 48.00 3.36 44.64 15.74 60.38 529.05
11th 48.00 3.36 44.64 17.59 62.23 591.28
12th 48.00 3.36 44.64 19.50 64.14 655.42
13th 48.00 3.36 44.64 21.46 66.10 721.52
14th 48.00 3.36 44.64 23.49 68.13 789.65
15th 48.00 3.36 44.64 25.28 69.92 859.57
16th 26.66 26.66 886.23
17th 27.17 27.17 913.40
18th 28.00 28.00 941.40
19th 28.86 28.86 970.26
20th 29.74 29.74 1,000.00
31
33
FKF, Inc. Schedule XI (continued)
-----------------------
Amounts Periodically Credited to Certificate Holders' Accounts
to Accumulate the Maturity Amount of Installment Certificates
Series 27
---------
Annual gross Amount credited Amount credited to Total credited
payments made by Less to reserves reserves to mature to reserves Accumulative
Year certificate holders loading to mature by charges to income to mature total
- - ---- ------------------- ------- --------------- -------------------- -------------- ------------
1st 425.00 29.75 395.25 13.83 409.08 409.08
2nd 14.31 14.31 423.39
3rd 14.81 14.81 438.20
4th 15.33 15.33 453.53
5th 15.86 15.86 469.39
6th 16.42 16.42 485.81
7th 16.99 16.99 502.80
8th 17.58 17.58 520.38
9th 18.20 18.20 538.58
10th 18.84 18.84 557.42
11th 19.50 19.50 576.92
12th 20.18 20.18 597.10
13th 20.88 20.88 617.98
14th 21.61 21.61 639.59
15th 22.37 22.37 661.96
16th 23.15 23.15 685.11
17th 23.96 23.96 709.07
18th 24.80 24.80 733.87
19th 25.67 25.67 759.54
20th 26.57 26.57 786.11
21st 27.50 27.50 813.61
22nd 28.46 28.46 842.07
23rd 29.45 29.45 871.52
24th 30.48 30.48 902.00
25th 31.54 31.54 933.54
26th 32.66 32.66 966.20
27th 33.80 33.80 1,000.00
32
34
FKF, Inc. Schedule XI (continued)
-----------------------
Amounts Periodically Credited to Certificate Holders' Accounts
to Accumulate the Maturity Amount of Installment Certificates
Series 27A
----------
Annual gross Amount credited Amount credited to Total credited
payments made by Less to reserves reserves to mature to reserves Accumulative
Year certificate holders loading to mature by charges to income to mature total
- - ---- ------------------- ------- --------------- -------------------- -------------- ------------
1st 425.00 29.75 395.25 13.83 409.08 409.08
2nd 14.31 14.31 423.39
3rd 14.81 14.81 438.20
4th 15.33 15.33 453.53
5th 15.86 15.86 469.39
6th 16.42 16.42 485.81
7th 16.99 16.99 502.80
8th 17.58 17.58 520.38
9th 18.20 18.20 538.58
10th 18.84 18.84 557.42
11th 19.50 19.50 576.92
12th 20.18 20.18 597.10
13th 20.88 20.88 617.98
14th 21.61 21.61 639.59
15th 22.37 22.37 661.96
16th 23.15 23.15 685.11
17th 23.96 23.96 709.07
18th 24.80 24.80 733.87
19th 25.67 25.67 759.54
20th 26.57 26.57 786.11
21st 27.50 27.50 813.61
22nd 28.46 28.46 842.07
23rd 29.45 29.45 871.52
24th 30.48 30.48 902.00
25th 31.54 31.54 933.54
26th 32.66 32.66 966.20
27th 33.80 33.80 1,000.00
33
35
INDEX TO EXHIBITS
-----------------
The following documents are filed as exhibits to this report or are
incorporated by reference by specific reference to previous filings
with the Commission:
Exhibit No.
- - -----------
(3) Articles of Incorporation and Bylaws of Registrant are on
file with the Commission as exhibits to Registrant's Form
N-8B-4 Report filed on October 25, 1977, which documents
are hereby incorporated by reference.
(4) Copies of or specimen copies of each of the outstanding
face-amount certificates, that being Series 20, 20L,
20LA, 27 and 27A, and a copy of an order of the United
States District Court for the District of Kansas, dated
May 2, 1977, are on file with the Commission as exhibits
to Registrant's Form N-8B-4 Report filed on October 25,
1977, which documents are hereby incorporated by
reference.
(10) A copy of the Depositary Agreement, dated October 23,
1962, as supplemented and assigned, is on file with the
Commission as an exhibit to Registrant's Form N-8B-4
Report filed on October 25, 1977, and a copy of the
Second Amendment to the Depositary Agreement dated
November 6, 1981, is filed as an exhibit to the 1981 Form
10-K dated March 16, 1982, which documents are hereby
incorporated by reference.
(13) Registrant's Annual Report to Shareholder consists of the
financial statements submitted herewith on pages 9
through 19.
(16) A copy of the letter regarding the change in certifying
accountants dated March 18, 1993, is on file with the
Commission as an exhibit to Registrant's Form 8-K filed
on March 18, 1993, which document is hereby incorporated
by reference.
34