U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR (15)d OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2000
------------------
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period________________ to_______________
Commission file number 0-12199
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SOURCE CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)
Washington 91-0853890
------------------------------- ---------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1825 N. Hutchinson Road, Spokane, Washington 99212
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(Address of principal executive office)
(509) 928-0908
--------------
( Issuer's telephone number)
As of August 11, 2000, there were 1,312,715 shares of the Registrant's common
stock outstanding.
Transitional Small Business Disclosure Format (check One) Yes [ ] No [X]
SOURCE CAPITAL CORPORATION
Form 10-QSB
For the Quarter Ended June 30, 2000
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Index
Page
----
Part I - Financial Information
Item 1 - Financial Statements (all financial statements are
unaudited except the December 31, 1999 consolidated
balance sheet):
- Consolidated Balance Sheets - June 30, 2000 and December 31, 1999 1
- Consolidated Statements of Income, Comprehensive Income and
Retained Earnings - Three and Six Months Ended June 30, 2000 and 1999 2
- Consolidated Statements of Cash Flows - Six months
Ended June 30, 2000 and 1999 3
- Notes to Consolidated Financial Statements 4
Item 2 - Management's Discussion and Analysis of Financial Condition and Results of
Operations 8
PART II - Other Information 11
Part I - Financial Information
Item 1. Financial Statements
SOURCE CAPITAL CORPORATION
CONSOLIDATED BALANCE SHEETS
------------
June 30, December 31,
2000 1999
---- ----
(Unaudited)
ASSETS
Loans receivable, net $55,644,963 $42,833,844
Leases receivable, net 13,496,091 14,224,409
Accrued interest receivable 592,107 326,190
Cash and cash equivalents 436,605 590,630
Marketable securities 178,239 195,684
Real estate and equipment owned 1,004,350 594,366
Other assets 1,228,715 1,141,887
Deferred income tax 1,137,000 1,206,560
------------ -------------
Total assets $73,718,070 $61,113,570
=========== ===========
LIABILITIES
Notes payable to bank $50,094,055 $36,781,267
Mortgage contracts payable 3,083,077 3,103,269
Accounts payable and accrued expenses 1,215,994 879,209
Customer deposits 634,744 723,005
Convertible subordinated debentures 5,000,000 5,950,000
------------- ------------
Total liabilities 60,027,870 47,436,750
------------ -----------
STOCKHOLDERS' EQUITY
Preferred stock, no par value, 10,000,000
shares authorized, none outstanding - -
Common stock, no par value, authorized 10,000,000
shares; issued and outstanding, 1,312,715 and
1,360,105 shares 6,786,913 7,052,881
Additional paid in capital 2,049,047 2,049,047
Accumulated other comprehensive income (loss) 2,656 (33,568)
Retained earnings 4,851,584 4,608,460
----------- ----------
Total stockholders' equity 13,690,200 13,676,820
---------- ----------
Total liabilities and stockholders' equity $73,718,070 $61,113,570
=========== ===========
See accompanying notes to consolidated financial statements.
1
SOURCE CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME, COMPREHENSIVE INCOME AND
RETAINED EARNINGS
For the Three and Six Months Ended June 30, 2000 and 1999
(Unaudited)
------------
Three Months ended June 30, Six Months ended June 30,
2000 1999 2000 1999
---- ---- ---- ----
Financing income:
Interest and fee income $2,113,812 $1,602,251 $3,923,594 $3,084,880
Lease financing income 582,803 710,784 1,156,163 1,378,647
Interest expense (1,276,990) (1,025,339) (2,323,583) (1,967,561)
---------- --------- ---------- ----------
Net financing income 1,419,625 1,287,696 2,756,174 2,495,966
Non-interest income:
Gain on sales of marketable securities,
equipment, real estate and other 160,919 175,622 254,737 187,395
Provision for loan and lease losses (414,170) ( 155,381) (537,215) (244,774)
---------- ---------- ---------- ---------
Income before non-interest expenses 1,166,374 1,307,937 2,473,696 2,438,587
Non-interest expenses:
Employee compensation and benefits 487,696 522,424 1,070,992 1,009,185
Other operating expenses 297,921 343,952 644,758 632,782
---------- ---------- ---------- ----------
Total non interest expenses 785,617 866,376 1,715,750 1,641,967
---------- ---------- --------- ---------
Income before income taxes 380,757 441,561 757,946 796,620
Income tax provision (129,200) (185,150) (215,700) (305,650)
----------- ----------- ----------- -----------
Net income 251,557 256,411 542,246 490,970
Retained earnings, beginning of period 4,600,027 3,787,576 4,608,460 3,795,765
Dividends paid -- -- (299,122) (242,748)
---------- ---------- ---------- ----------
Retained earnings, end of period $4,851,584 $4,043,987 $4,851,584 $4,043,987
========== ========== ========== ==========
Net income per common share - basic $ .19 $ .19 $ .41 $ .36
========== ========== ========== ==========
Net income per common share - diluted $ .17 $ .16 $ .36 $ .31
========== ========== ========== ==========
Weighted average number of common shares outstanding:
Basic 1,313,382 1,360,221 1,336,080 1,358,583
========== ========== ========== ==========
Diluted 1,945,977 2,112,981 1,967,968 2,112,222
========== ========== ========== ==========
Cash dividends per share None None $.22 $.18
==== ==== ==== ====
Net income $ 251,557 $ 256,411 $ 542,246 $ 490,970
Other comprehensive income, net of tax:
Unrealized gain (loss) on marketable securities 46,545 (5,702) 54,885 (6,200)
Income tax (expense) benefit (15,825) 1,939 (18,661) 2,108
----------- ---------- ---------- ----------
Comprehensive income $ 282,277 $ 252,648 $ 578,470 $ 486,878
========== ========== ========== ==========
See accompanying notes to consolidated financial statements.
2
SOURCE CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 2000 and 1999
(Unaudited)
2000 1999
---- ----
Cash flows from operating activities:
Net income $ 542,246 $ 490,970
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 40,538 30,930
Provision for loan and lease losses 215,991 212,274
Impairment loss on repossessed assets 321,224 32,500
Deferred income taxes 69,560 31,600
Gain on sale of securities and debt retirement (202,727) --
Gain on sale of assets (52,010) (187,395)
Change in:
Accrued interest receivable (265,917) (138,654)
Other assets (72,967) 56,244
Accounts payable and accrued expenses (79,254) 51,199
Customer deposits (88,261) 176,349
------------- ------------
Net cash provided by operating activities 428,423 756,017
------------- ------------
Cash flows from investing activities:
Proceeds from sale of marketable securities 143,887 --
Loan originations (23,329,304) (12,721,800)
Loan repayments 10,518,186 8,828,874
Additions to direct financing leases (3,858,008) (7,806,680)
Collections on direct financing leases 2,285,904 2,341,513
Capitalization of costs related to other real estate - (5,589)
Proceeds from sale of assets 130,183 193,004
Proceeds from sale of leases 1,184,665 2,365,561
Purchase of office equipment and vehicle (16,465) (87,546)
------------- ------------
Net cash used in investing activities (12,940,952) (6,892,663)
------------- -------------
Cash flows from financing activities:
Proceeds from line of credit 27,195,145 23,429,298
Payments on line of credit (13,882,357) (17,052,866)
Payments of long-term debt (20,192) (23,374)
Proceeds from exercise of stock options - 50,000
Payments for redemption of common stock (265,968) (1,001)
Payments for redemption of debentures (369,002) (46,592)
Cash dividends paid (299,122) (242,748)
------------- ------------
Net cash provided by financing activities 12,358,504 6,112,717
------------- ------------
Net decrease in cash and cash equivalents (154,025) (23,929)
Cash and cash equivalents, beginning of period 590,630 750,218
------------- ------------
Cash and cash equivalents, end of period $ 436,605 $ 726,289
============= ============
Supplemental disclosure of cash flow information:
Cash paid during the period for interest $ 2,198,917 $ 1,941,788
Cash paid during the period for income taxes $ 160,000 $ 212,300
Non-cash financing and investing transactions:
Loans and accrued interest converted to repossessed assets $ -- $ 198,317
Leases converted to repossessed and other assets $ 894,979 $ 470,790
See accompanying notes to consolidated financial statements.
3
SOURCE CAPITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1.
The consolidated financial statements include the accounts of the Company and
its wholly owned subsidiary, Source Capital Leasing Co. All significant
intercompany transactions and balances have been eliminated in consolidation.
The unaudited consolidated financial statements reflect all adjustments,
(consisting only of normal recurring items), which in the opinion of management,
are necessary to fairly state the periods reported. Certain 1999 amounts have
been reclassified to conform with the 2000 presentation. These reclassifications
had no effect on the net income or retained earnings as previously reported. The
results of operations for the six-month period ended June 30, 2000 are not
necessarily indicative of the results to be expected for the full year. These
unaudited financial statements should be read in conjunction with the Company's
most recent audited financial statements, filed as a part of the Form 10KSB, for
the year ended December 31, 1999.
NOTE 2.
Net income per share - basic is computed by dividing net income by the
weighted-average number of common shares outstanding during the period. Net
income per share - diluted (after adjustment for the after-tax effect of
interest on convertible debentures) is computed by dividing net income by the
weighted-average number of common shares outstanding increased by the additional
common shares that would have been outstanding if the dilutive potential common
shares had been issued.
Earnings Per Share ("EPS") Computation:
For the Quarter Ended June 30, 2000
-----------------------------------
Weighted- Per-Share
Net Income Average shares Amount
---------- -------------- ------
Basic EPS
Income available to
Stockholders $ 251,557 1,313,382 $ .19
=======
Effect of Dilutive Securities
Interest on convertible subordinated
debentures (net of 34% tax) 79,339 624,220
Common stock options 8,375
--------- ---------
Diluted EPS
Income available to common
stockholders + assumed conversions $ 330,896 1,945,977 $ .17
========= ========= =======
4
SOURCE CAPITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
Earnings Per Share Computation, Continued:
For the Quarter Ended June 30, 1999
-----------------------------------
Weighted- Per-Share
Net Income Average shares Amount
---------- -------------- ------
Basic EPS
Income available to
Stockholders $ 256,411 1,360,221 $ .19
=======
Effect of Dilutive Securities
Interest on convertible subordinated
debentures (net of 34% tax) 80,718 742,822
Common stock options 9,938
--------- ---------
Diluted EPS
Income available to common
stockholders + assumed conversions $ 337,129 2,112,981 $ .16
========= ========= =======
For the Six Months Ended June 30, 2000
--------------------------------------
Weighted- Per-Share
Net Income Average shares Amount
---------- -------------- ------
Basic EPS
Income available to
Stockholders $ 542,246 1,336,080 $ .41
=======
Effect of Dilutive Securities
Interest on convertible subordinated
debentures (net of 34% tax) 162,155 624,220
Common stock options 7,668
--------- ---------
Diluted EPS
Income available to common
stockholders + assumed conversions $ 704,401 1,967,968 $ .36
========= ========= =======
5
SOURCE CAPITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
Earnings Per Share Computation, Continued:
For the Six Months Ended June 30, 1999
Weighted- Per-Share
Net Income Average shares Amount
Basic EPS
Income available to
Stockholders $ 490,970 1,358,583 $ .36
=======
Effect of Dilutive Securities
Interest on convertible subordinated
debentures (net of 34% tax) 166,797 742,822
Common stock options 10,817
--------- ---------
Diluted EPS
Income available to common
stockholders + assumed conversions $ 657,767 2,112,222 $ .31
========= ========= =======
NOTE 3.
The Company's consolidated financial statements include certain reportable
segment information. The segments include the parent company Source Capital
Corporation who's primary business is commercial real estate lending and its
wholly owned subsidiary Source Capital Leasing Co. who's primary business is
equipment lease financing. All accounting policies of the parent and subsidiary
are the same. The parent evaluates the performance of the subsidiary based upon
multiple variables including lease income, interest expense and profit or loss
after tax. The parent does not allocate any unusual items to the subsidiary.
Company segment profit and loss components and schedules of assets as of June
30, 2000 and 1999 are as follows:
2000 1999
---- ----
Leasing Lending Leasing Lending
------- ------- ------- -------
Revenue $ 1,308,679 $ 4,025,815 $ 1,550,861 $ 3,100,061
Interest expense 453,927 1,869,656 471,985 1,495,576
Depreciation 15,622 24,916 7,780 23,150
Income tax expense (benefit) (123,500) 339,200 82,500 215,250
Net income (loss) (240,547) 782,794 159,516 331,454
Significant non-cash items
other than depreciation 532,215 5,000 229,774 15,000
Assets 15,049,937 62,616,538 18,211,271 51,396,490
6
SOURCE CAPITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
NOTE 3. Continued:
Reconciliation of segment net income (loss), total assets, notes payable and
other significant items for the six months ended June 30, 2000 and 1999 follows:
2000 1999
---- ----
Profit or loss
Leasing net (loss) income $ (240,548) $ 159,516
Adjustment for income taxes (339,200) (215,250)
Unallocated amounts:
Revenue of real estate lending 4,096,679 3,100,061
Expense of real estate lending (2,974,685) (2,553,357)
------------ ------------
Consolidated net income after tax $ 542,246 $ 490,970
============ ============
Total assets
Net lease investment $ 13,496,091 $ 16,621,913
Unallocated assets of leasing 1,553,847 1,589,358
Elimination of intercompany (3,948,406) (4,207,873)
Commercial loans receivable, net 55,644,963 44,099,948
Unallocated assets of real estate lending 6,971,575 7,296,542
------------ ------------
Consolidated assets $ 73,718,070 $ 65,399,888
============ ============
Debt
Leasing note payable $ 10,414,055 $ 13,114,596
Real estate lending note payable 39,680,000 28,505,000
Real estate lending mortgage contract payable 3,083,077 3,124,205
Real estate lending convertible subordinated debentures 5,000,000 5,950,000
------------ ------------
Consolidated notes and mortgage payable $ 58,177,132 $ 50,693,801
============ ============
Real Estate
Other significant items Leasing Lending Consolidated
------- ------- ------------
2000
Interest expense $ 453,927 $1,869,656 $2,323,583
Provision for losses 532,215 5,000 537,215
1999
Interest expense $ 471,985 $1,495,576 $1,967,561
Provision for losses 229,774 15,000 244,774
7
SOURCE CAPITAL CORPORATION
PART I - FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
- --------------------------------------------------------------------------------
General
These discussions contain forward-looking statements containing words such as
"will continue to be," "will be," "continue to," "anticipates that," "to be," or
"can impact." Management cautions that forward-looking statements are subject to
risks and uncertainties that could cause the Company's actual results to differ
materially from those projected in forward-looking statements.
Six Months Ended June 30, 2000 Compared to Six Months Ended June 30, 1999
- -------------------------------------------------------------------------
For the six months ended June 30, 2000 the Company reported net income of
$542,000 or $.36 per diluted common share. These results compare to net income
of $491,000 or $.31 per diluted common share for the comparable period in 1999.
Net financing income (interest and lease income less interest expense) increased
from approximately $2,496,000 during the six months ended June 30, 1999 to
$2,756,000 in the comparable period in 2000 (a 10.4% increase). Finance income
of $5,080,000 and $4,464,000 in the six months ended June 30, 2000 and 1999,
respectively, represents an approximate average interest yield of 16.43% and
15.28%, respectively, on the Company's average earning assets. Interest income
on the Company's loan portfolio increased by approximately $839,000 compared to
the first six months of 1999. This increase was partially offset by a decrease
in lease income of approximately $222,000 for the comparable period. The
increase in the 2000 yield as compared to 1999 is primarily due to a general
increase in interest rates and a decrease in non-performing loans.
The increase in financing income of approximately $616,000 is primarily
attributable to the increase of approximately $3,432,000 in the Company's
average earning assets over the first six months of 1999, coupled with a general
increase in interest rates related to Federal Reserve policy decisions. The
Company's average earning asset portfolio grew from approximately $58,400,000 in
the six-month period ended June 30, 1999 to approximately $61,832,000 for the
comparable period ended June 30, 2000. The growth in the portfolio is composed
of an $11,545,000 growth in net loans offset by a $3,126,000 decrease in net
leases. The increase in financing income was partially offset by an approximate
$356,000 increase in interest expense. The Company's cost of funds on average
borrowings increased from approximately 8.2% for the first six months of 1999 to
approximately 9.2% for the comparable period in 2000. The Company was able to
mitigate the increase in its borrowing costs by funding a portion of its loan
portfolio using a "LIBOR" based rate, which is currently lower than the prime
based rate option. The Company funds its lease portfolio using a "LIBOR" based
rate which currently approximates prime less .75%.
During the six month period ended June 30, 2000 the Company recognized a gain of
approximately $48,000 from the sale of one tranche of leases totaling
approximately $1,185,000 as compared to a gain of approximately $175,000 from
the sale of two tranches of leases totaling approximately $2,184,000 during the
comparable period in 1999. These leases were sold on a non-recourse basis and
allowed the Company to accelerate the earnings process for a percentage of the
total lease portfolio. Loans and leases delinquent more than 90 days equaled
3.97% of the loans and leases outstanding at June 30, 2000 as compared to
approximately 2.7% at June 30, 1999. Subsequent to June 30, 2000 a loan in the
amount of $1,347,000 which was delinquent more than 90 days was paid in full.
Loans are collateralized by deeds of trust. The Company's allowance for probable
loan and lease losses of approximately $608,000 is considered adequate as of
June 30, 2000.
8
Total non-interest expenses in the first six months of 2000 was approximately
$1,716,000 as compared to approximately $1,642,000 for the corresponding period
of the prior year, which represents a 4.5% increase. This increase was primarily
due to employee compensation and benefits increasing approximately $62,000 or
6.1%. During the period June 1999 to June 2000 the Company's employment level
remained static at 25 employees. Other operating expenses increased less than
2%. The most significant increase in other operating expenses was an approximate
$90,000 increase in lease repossession and collection expenses, which was
partially offset by decreases in other expenses.
The provision for income taxes was approximately $216,000 and $306,000 for the
six months ended June 30, 2000 and 1999, respectively. The Company expects to
pay significantly less current income tax than the estimated tax provision for
the year ended December 31, 2000, due to the utilization of net operating loss
carryovers and the differences between book and tax accounting for leases. The
Company's effective tax rate for the Company's 1999 tax liability was
approximately 25%.
Three Months Ended June 30, 2000 Compared to Three Months ended June 30, 1999
- -----------------------------------------------------------------------------
For the three months ended June 30, 2000, the Company reported net income of
$252,000 or $.17 per diluted common share. These results compare to net income
of $256,000 or $.16 per diluted share, for the comparable period in 1999. Net
financing income (interest and lease income less interest expense) increased
from approximately $1,288,000 during the three months ended June 30, 1999 to
approximately $1,420,000 in the comparable period of 2000 (a 10.2% increase).
Finance income of approximately $2,697,000 and $2,313,000 in the three months
ended June 30, 2000 and 1999, respectively, represents an approximate average
interest yield of 16.47% and 15.25%, respectively, on the Company's average
earning assets. The increase in yield is primarily due to fewer non-performing
loans on average in 2000 as compared to 1999 and a general increase in interest
rates.
The increase in financing income of approximately $384,000 is directly
attributable to the increase of approximately $4,782,000 in the Company's
average earning assets over the second quarter of 1999. The Company's average
earning asset portfolio grew from $60,664,000 for the three months ended June
30, 1999 to approximately $65,446,000 at June 30, 2000. The growth in the
Company's average earning assets is directly attributable to the increase in
loan production which was partially offset by a decrease in the lease portfolio
due to the sale of leases and lower lease production in the second quarter of
2000 as compared to 1999 levels. The increase in financing income was partially
offset by an approximate $252,000 increase in interest expense. The Company's
cost of funds on average borrowings increased from approximately 8.2% at June
30, 1999 to approximately 9.38% in the comparable period in 2000. The Company
was able to reduce its borrowing costs by funding a portion of its loan
portfolio using a "LIBOR" based rate, which is currently lower than the prime
based rate option. The Company also funds its lease portfolio using a "LIBOR"
based rate which currently approximates prime less .75%.
During the three months ended June 30, 2000 the Company recognized a gain of
approximately $48,000 from the sale of leases totaling $1,185,000 as compared to
a gain of $175,000 from the sale of leases totaling $2,184,000 in the 1999
period. These leases were sold on a non-recourse basis allowing the Company to
accelerate the earnings process for a percentage of the total lease portfolio.
Total non-interest expenses for the second quarter of 2000 was approximately
$786,000 as compared to approximately $866,000 for the corresponding period of
the prior year, which represents a 9.2% decrease. This decrease was as a result
9
of both employee compensation and benefits decreasing approximately $35,000 or
6.7%, and other operating expenses decreasing approximately $46,000 or 13.4%.
The decrease in employee compensation and benefits is primarily due to a lower
profit sharing accrual in the quarter ended June 30, 2000 as compared to June
30, 1999. The decrease in other expenses is composed of various increases and
decrease spread across several account categories. The most significant increase
is an approximate $50,000 increase in lease repossession and collection costs
which was offset by decreases of $20,000 in local taxes, $15,000 in travel
expenses and decreases in various other account categories none of which is
significant when considered individually.
Financial Condition and Liquidity
- ---------------------------------
At June 30, 2000, the Company had approximately $437,000 of cash and cash
equivalents as compared to approximately $591,000 at December 31, 1999. The
Company also had $178,000 of marketable securities at June 30, 2000, as compared
to approximately $196,000 at December 31, 1999. The Company's primary sources of
cash during the first six months of 2000 were approximately $27,195,000 from
short term borrowings, $10,518,000 loan repayments, $2,286,000 from lease
repayments, $1,185,000 from the sale of one tranche of leases and $428,000 from
operations. The primary uses of cash during the first six months of 2000 were
approximately $23,329,000 loan originations, $13,882,000 of repayment of short
term borrowings, $3,858,000 additions to direct financing leases, $369,000
redemption of convertible subordinated debentures, $299,000 payment of dividends
and $266,000 for the purchase and immediate retirement of the Company's common
stock.
The Company's $45,000,000 line of credit, which matures annually, was renewed on
April 30, 2000. At June 30, 2000, the Company had $39,680,000 outstanding under
the line of credit. In addition, the Company's wholly owned subsidiary, Source
Capital Leasing Co., has a $13,000,000 line of credit to fund its lease
portfolio. The leasing company's line was renewed on July 31, 2000, and will
mature April 30, 2001. The leasing company had approximately $10,414,000
outstanding under its line at June 30, 2000. The cash flows from the Company's
lines of credit, loan and lease repayments, and the existing cash, cash
equivalents and investment securities are expected to be sufficient to fund the
operating needs of the Company for the immediate future.
Effect of Inflation and Changing Prices
- ---------------------------------------
Interest rates on the Company's loan portfolio are subject to inflation as
inflationary pressures affect the prime interest rate. At June 30, 2000,
interest rates on approximately 99% of the Company's loan portfolio were
variable based on various indexes. The remaining loans have fixed interest
rates. Loans with fixed rates and maturities of less than one year at June 30,
2000 are considered variable. The Company's line-of-credit agreement provides
for variable interest based on the prime rate or at the Company's option, a
"LIBOR" based rate.
Management believes that any negative effects of an increase in the prime
interest rate would be largely offset by the Company's relatively short-term
loan portfolio, balloon payments and the large percentage of variable rate
loans.
Rates earned on the Company's lease portfolio are fixed for the term of the
lease, however, the Company funds its portfolio by borrowing under its
line-of-credit as soon as is practicable after funding the lease. Each lease is
funded separately and the interest rate charged by the bank is fixed for the
term of the advance which is matched to the term of the lease.
10
SOURCE CAPITAL CORPORATION
PART II - OTHER INFORMATION
Items 1,2,3,4 and 5 of Part II are omitted from this report as they are either
inapplicable or the answer is negative.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27.1 Financial Data Schedule
(b) Reports on Form 8-K
Form 8-K Report dated May 25, 2000 - Item 5 - Other events
(The balance of this page has been intentionally left blank.)
11
SOURCE CAPITAL CORPORATION
SIGNATURES
------------
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
SOURCE CAPITAL CORPORATION
--------------------------
(Registrant)
Date: August 14, 2000 By: /s/ D. Michael Jones
---------------------------- --------------------
D. Michael Jones
President and Chief Executive Officer
Date: August 14, 2000 By: /s/ Lester L. Clark
---------------------------- -------------------
Lester L. Clark
Vice President-Secretary/Treasurer
Principal accounting and finance officer