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Exhibit a-2
HERITABLE FINANCE LIMITED
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(DOLLARS IN THOUSANDS)
JUNE 30,
1996
DECEMBER 31, DECEMBER 31, -----------
1994 1995
------------ ------------ (UNAUDITED)
ASSETS
Cash.................................................... $ 58 $ 47 $ 1,381
Accrued interest receivable............................. 1,583 1,699 1,790
Unamortized fees........................................ 2,982 3,962 1,078
Accounts receivable..................................... 799 379 521
Mortgage servicing rights............................... -- -- 30,479
Mortgage loans held for investment, net................. 159,806 172,702 39,501
Furniture, equipment and vehicles, net.................. 524 588 626
Other assets............................................ 2,142 2,125 163
-------- -------- --------
Total assets.................................... $167,894 $181,502 $ 75,539
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LIABILITIES
Bank overdraft.......................................... $ -- $ -- $ --
Accounts payable and other liabilities.................. 1,588 1,678 3,773
Income taxes payable.................................... 1,095 2,127 14,249
Due to The Heritable and General Investment Bank
Limited.............................................. 163,037 171,028 --
Due to City Mortgage Corporation........................ -- -- 26,718
Negative goodwill....................................... 2,116 1,882 1,773
-------- -------- --------
Total liabilities............................... 167,836 176,715 46,513
-------- -------- --------
STOCKHOLDERS' EQUITY
Common stock 1,000 L1.00 par value "A" ordinary shares
authorized, issued and outstanding in 1994, 1995 and
1996................................................. 2 2 2
Common Stock, 9,000 L1.00 par value "B" ordinary shares
authorized, issued and outstanding in 1994, 1995 and
1996................................................. 14 14 14
Foreign currency translation adjustment................. 86 7 390
Retained earnings(deficit).............................. (44) 4,764 28,620
-------- -------- --------
Total stockholders' equity.............................. 58 4,787 29,026
-------- -------- --------
Total liabilities and stockholders' equity...... $167,894 $181,502 $ 75,539
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See accompanying notes to consolidated financial statements
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