IMPERIAL CAPITAL BANCORP, INC. - FORM 8-K - EX-99.1

IMPERIAL CAPITAL BANCORP, INC. - FORM 8-K - EX-99.1 - April 4, 2011

Attached files

Attached files

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8-K - IMPERIAL CAPITAL BANCORP, INC.	imp-8k032811.htm

Exhibit 99.1

UNITED STATES DEPARTMENT OF JUSTICE

OFFICE OF THE UNITED STATES TRUSTEE

SOUTHERN DISTRICT OF CALIFORNIA

In Re:

IMPERIAL CAPITAL BANCORP, INC., a

Delaware corporation

Debtor(s).

CHAPTER 11 (BUSINESS)

CASE NO. 3:09-bk-19431

OPERATING REPORT NO. 15

FOR THE MONTH ENDING:

FEBRUARY 2011

I. CASH RECEIPTS AND DISBURSEMENTS

A.1 (BANK OF AMERICA GENERAL ACCOUNT*)

1.	TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS	$	5,952,722.52

2.	LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS	$	5,952,722.52

3.	BEGINNING BALANCE:	$	0.00

4.	RECEIPTS DURING CURRENT PERIOD:

	ACCOUNTS RECEIVABLE - PRE-FILING	$	0.00
	ACCOUNTS RECEIVABLE - POST-FILING	$	0.00
	GENERAL SALES	$	0.00
	OTHER (SPECIFY) Payments on residual interests	$	0.00
	OTHER** (SPECIFY) Refunds	$	0.00

		TOTAL RECEIPTS THIS PERIOD:		$	0.00
5.		BALANCE:		$	0.00

TOTAL DISBURSEMENTS THIS PERIOD***:		$	0.00

*	All receipts must be deposited into the general account.

* All receipts must be deposited into the general account.

**Include receipts from the sale of any real or personal property out of the ordinary course of business; attach an exhibit specifying what was sold, to whom, terms, and date of Court Order or Report of Sale.

***This amount should be the same as the total from page 2.

TOTAL DISBURSEMENTS FROM GENERAL ACCOUNT FOR CURRENT PERIOD

DATE	CHECK NUMBER	PAYEE	PURPOSE	AMOUNT

TOTAL DISBURSEMENTS THIS PERIOD $ 0.00

Add additional pages as necessary to include all disbursements.

GENERAL ACCOUNT

BANK RECONCILIATION*

Balance per bank statement dated: 02/28/11

0.00

Plus deposits in transit (a):

Deposit Date	Deposit Amount
__________	$_____________
__________	$_____________
__________	$_____________

Total deposits in transit

Less outstanding checks (a):

Check Number	Check Date	Check Amount

Total outstanding checks	<0.00>

Bank statement adjustments**

Adjusted bank balance	$	0.00

*	It is acceptable to attach lists of deposits in transit and outstanding checks to this form or to replace this form with a similar form.

**Please attach a detailed explanation of any bank statement adjustment.

I. CASH RECEIPTS AND DISBURSEMENTS

A.2 (TORREY PINES BANK ACCOUNT)

1.	TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS	$	6,704,446.12

2.	LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS	$	6,512,541.69

3.	BEGINNING BALANCE:	$	191,904.43

4.	RECEIPTS DURING CURRENT PERIOD:

	ACCOUNTS RECEIVABLE - PRE-FILING	$	0.00
	ACCOUNTS RECEIVABLE - POST-FILING	$	0.00
	GENERAL SALES	$	0.00
	OTHER (SPECIFY) Payments on residual interests	$	0.00
	OTHER (SPECIFY) Account refunds	$	0.00
	OTHER (SPECIFY) Transfer from money market account	$	375,745.40

		TOTAL RECEIPTS THIS PERIOD:		$	375,745.40
5.		BALANCE:		$	567,649.83

TOTAL DISBURSEMENTS THIS PERIOD:		$	439,090.52

TOTAL DISBURSEMENTS FROM GENERAL ACCOUNT FOR CURRENT PERIOD

DATE	CHECK NUMBER	PAYEE	PURPOSE	AMOUNT
02/02/11	1136	Joseph Kiley	Expense reimbursement	76.45
02/01/11	1146	Melanie O'Donnell	Expense reimbursement	194.29
02/04/11	1148	888 Prospect LJ, LLC	Office rent	5,205.13
02/03/11	1149	Verizon Wireless	Telephone services	185.05
02/03/11	1150	Ace Parking Management	Parking services	350.00
02/11/11	1151	State Compensation Insurance Fund	Workers compensation insurance premium	459.62
02/11/11	1152	Public Storage	Storage services	211.00
02/11/11	1153	Takeo Sasaki	Consulting -- accounting services	1,341.00
02/08/11	1154	Mary Jane Mulson	Janitorial services	210.00
02/14/11	1155	Form-Craft Business Systems	Check printing	101.98
02/22/11	1156	Ernst & Young	Tax services	6,414.40
02/18/11	1157	FTI Consulting	Committee consultant services	37,640.40
02/18/11	1158	Takeo Sasaki	Consulting -- accounting services	1,573.50
02/09/11	Bank Debit	Torrey Pines Bank	Wire transfer fee	30.00
02/09/11	Bank Debit	Torrey Pines Bank	Wire transfer fee	30.00
02/09/11	Bank Debit	Akin Gump Strauss Hauer & Feld	Wire transfer for legal fees	66,671.73
02/09/11	Bank Debit	Stutman, Treister & Glatt	Wire transfer for legal fees	131,744.17
02/28/11	Bank Debit	Torrey Pines Bank	Wire transfer fee	30.00
02/28/11	Bank Debit	Torrey Pines Bank	Wire transfer fee	30.00

02/28/11	Bank Debit	Akin Gump Strauss Hauer & Feld	Wire transfer for legal fees	59,505.90
02/28/11	Bank Debit	Stutman, Treister & Glatt	Wire transfer for legal fees	127,085.90

TOTAL DISBURSEMENTS THIS PERIOD $ 439,090.52

Add additional pages as necessary to include all disbursements.

GENERAL ACCOUNT

BANK RECONCILIATION*

Balance per bank statement dated: 02/28/11

128,559.31

Plus deposits in transit (a):

Deposit Date	Deposit Amount
__________	$_____________
__________	$_____________
__________	$_____________

Total deposits in transit

Less outstanding checks (a):

Check Number	Check Date	Check Amount
1135	01/05/11	$1,400.00
1159	02/28/11	$5,205.13
1160	02/28/11	$350.00
1161	02/28/11	$186.64

Total outstanding checks	<7,141.77		>

Bank statement adjustments**

Adjusted bank balance	$	121,417.54

*	It is acceptable to attach lists of deposits in transit and outstanding checks to this form or to replace this form with a similar form.

**Please attach a detailed explanation of any bank statement adjustment.

I. CASH RECEIPTS AND DISBURSEMENTS (Continued)

B.1 (BANK OF AMERICA PAYROLL ACCOUNT)

1.	TOTAL RECEIPTS PER ALL PRIOR PAYROLL ACCOUNT REPORTS	$	117,770.84

2.	LESS: TOTAL DISBURSEMENTS PER ALL PRIOR PAYROLL ACCOUNT REPORTS	$	117,770.84

3.	BEGINNING BALANCE	$	0.00

4.	RECEIPTS: TRANSFERRED FROM GENERAL ACCOUNT	$	0.00

5.	BALANCE	$	0.00

6.	LESS: DISBURSEMENTS DURING CURRENT PERIOD

DATE	CHECK NO.	PAYEE	AMOUNT

TOTAL DISBURSEMENTS THIS PERIOD:

0.00

7.		ENDING BALANCE:		$	0.00
8.		PAYROLL ACCOUNT NUMBER DEPOSITORY NAME AND LOCATION Bank of America, 1655 Grant Street Bldg A, 10th Floor, Concord, California 94500-2455

PAYROLL ACCOUNT

BANK RECONCILIATION*

Balance per bank statement dated: 02/28/11

0.00

Plus deposits in transit (a):

Deposit Date	Deposit Amount
__________	$_____________
__________	$_____________
__________	$_____________

Total deposits in transit

0.00

Less outstanding checks (a):

Check Number	Check Date	Check Amount

Total outstanding checks	<0.00>

Bank statement adjustments**

Adjusted bank balance	$	0.00

*	It is acceptable to attach lists of deposits in transit and outstanding checks to this form or to replace this form with a similar form.

**Please attach a detailed explanation of any bank statement adjustment.

I. CASH RECEIPTS AND DISBURSEMENTS (Continued)

B.2 (TORREY PINES PAYROLL ACCOUNT)

1.	TOTAL RECEIPTS PER ALL PRIOR PAYROLL ACCOUNT REPORTS	$	329,008.72

2.	LESS: TOTAL DISBURSEMENTS PER ALL PRIOR PAYROLL ACCOUNT REPORTS	$	328,612.26

3.	BEGINNING BALANCE	$	396.46

4.	RECEIPTS: TRANSFERRED FROM OTHER ACCOUNT (Torrey Pines Bank general account)	$	23,211.04

5.	BALANCE	$	23,607.50

6.	LESS: DISBURSEMENTS DURING CURRENT PERIOD

DATE	CHECK NO.	PAYEE	AMOUNT
02/14/11	Payroll fee	NPS Payroll Services	61.00
02/14/11	Transfer payroll 2/1 to 2/15	NPS Payroll Services	3,805.08
02/14/11	Transfer payroll 2/1 to 2/15	NPS Payroll Services	7,344.06
02/25/11	Payroll fee	NPS Payroll Services	61.00
02/25/11	Transfer payroll 2/16 to 2/28	NPS Payroll Services	3,805.96
02/25/11	Transfer payroll 2/16 to 2/28	NPS Payroll Services	7,344.08

TOTAL DISBURSEMENTS THIS PERIOD:

22,422.08

7.		ENDING BALANCE:		$	1,185.42
8.		PAYROLL ACCOUNT NUMBER DEPOSITORY NAME AND LOCATION Torrey Pines Bank, 4350 Executive Drive, Suite 130, San Diego, California 92121

PAYROLL ACCOUNT

BANK RECONCILIATION*

Balance per bank statement dated: 02/28/11

1,185.42

Plus deposits in transit (a):

Deposit Date	Deposit Amount
__________	$_____________
__________	$_____________
__________	$_____________

Total deposits in transit

0.00

Less outstanding checks (a):

Check Number	Check Date	Check Amount

Total outstanding checks	<0.00>

Bank statement adjustments**

Adjusted bank balance	$	1,185.42

*	It is acceptable to attach lists of deposits in transit and outstanding checks to this form or to replace this form with a similar form.

**Please attach a detailed explanation of any bank statement adjustment.

I. CASH RECEIPTS AND DISBURSEMENTS (Continued)

C. (TAX ACCOUNT)

1.	TOTAL RECEIPTS PER ALL PRIOR TAX ACCOUNT REPORTS	$	74,339.88

2.	LESS: TOTAL DISBURSEMENTS PER ALL PRIOR TAX ACCOUNT REPORTS	$	0.00

3.	BEGINNING BALANCE	$	74,339.88

4.	RECEIPTS: TRANSFERRED FROM OTHER ACCOUNT -- Torrey Pines MM	$	0.00

	OTHER - Interest	$	25.67

5.	BALANCE	$	74,365.55

6.	LESS: DISBURSEMENTS DURING CURRENT PERIOD

DATE	CHECK NO.	PAYEE	AMOUNT

TOTAL DISBURSEMENTS THIS PERIOD:

0.00

TAX ACCOUNT

BANK RECONCILIATION*

Balance per bank statement dated: 02/28/11

74,365.55

Plus deposits in transit (a):

Deposit Date	Deposit Amount
__________	$_____________
__________	$_____________
__________	$_____________

Total deposits in transit

0.00

Less outstanding checks (a):

Check Number	Check Date	Check Amount

Total outstanding checks	<0.00>

Bank statement adjustments**

Adjusted bank balance	$	74,365.55

*	It is acceptable to attach lists of deposits in transit and outstanding checks to this form or to replace this form with a similar form.

**Please attach a detailed explanation of any bank statement adjustment.

D. SUMMARY SCHEDULE OF CASH

ENDING BALANCE FOR PERIOD:

GENERAL ACCOUNT - Bk of America	$	0.00
GENERAL ACCOUNT - Torrey Pines Bk	$	121,417.54
PAYROLL ACCOUNT - Bk of America	$	0.00
PAYROLL ACCOUNT - Torrey Pines Bk	$	1,185.42
TAX ACCOUNT - Torrey Pines Bk	$	74,365.55
OTHER ACCOUNTS*: Torrey Pines Bank 4350 Executive Drive, Suite 130 San Diego, CA 92121 Money Market Account	$	3,352,572.95
Torrey Pines Bank 4350 Executive Drive, Suite 130 San Diego, CA 92121 Money Market Account	$	6,896,568.03
OTHER MONIES*:_______________	$
PETTY CASH**	$	250.00
TOTAL CASH AVAILABLE	$	10,446,359.49

NOTE: Attach copies of monthly accounts statements from financial institutions for each account.

*Specify the fund and the type of holding (i.e., CD, Savings Account, Investment securities, etc.), and the depository name, location, and account number.

**Attach exhibit itemizing all petty cash transactions.

II. STATUS OF PAYMENTS TO SECURED CREDITORS, LESSORS,

AND OTHER PARTIES TO EXECUTORY CONTRACTS

CREDITOR, LESSOR, ETC.	FREQUENCY OF PAYMENTS (Mo./Qtr.)	AMOUNT OF PAYMENT	POST-PETITION PAYMENTS NOT MADE (NUMBER)	TOTAL DUE
888 Prospect LJ, LLC	Monthly	$5,205.13	None	None



			TOTAL DUE	None

III. TAX LIABILITIES

FOR THE REPORTING PERIOD:

GROSS SALES SUBJECT TO SALES TAX		$	0
TOTAL WAGES PAID		$	20,715.34

	TOTAL POST-PETITION AMOUNTS OWING	AMOUNT DELINQUENT	DATE DELINQUENT AMOUNT DUE
FEDERAL WITHHOLDING	$ 0.00	$0.00
STATE WITHHOLDING	$	$
FICA - EMPLOYER'S SHARE	$	$
FICA - EMPLOYEE'S SHARE	$	$
FEDERAL UNEMPLOYMENT	$	$
STATE WITHHOLDING	$	$
SALES AND USE	$	$
REAL PROPERTY	$	$
OTHER: (SPECIFY)	$	$
TOTAL:	$	$

IV. AGING OF ACCOUNTS PAYABLE AND ACCOUNTS RECEIVABLE

	ACCOUNTS PAYABLE* (POST-PETITION ONLY)	ACCOUNTS Pre-Petition	RECEIVABLE Post-Petition
30 days or less	None	None	None
31 - 60 days
61 - 90 days
91 - 120 days
Over 120 days
TOTALS:

V. INSURANCE COVERAGE

	NAME OF CARRIER	AMOUNT OF COVERAGE	POLICY EXPIRATION DATE	PREMIUM PAID THROUGH:
General Liability	Hartford	$1,000,000/occurrence	3/15/12	3/15/11
Worker Compensation	State Fund	$1,000,000/occurrence	2/15/12	March 2011

VI. UNITED STATES TRUSTEE QUARTERLY FEES

(TOTAL PAYMENTS)

Qtrly Period Ending	Total Disbursements	Qtrly Fees	Date Paid	Amount Paid	Qtrly Fee Still Owing
12/31/09	$3,100.00	$325.00	1/29/10	$325.00	$0.00
3/31/10	$165,607.22	$1,625.00	4/7/10, 5/13/10	$325.00, $1,300.00	$0.00
6/30/10	$260,256.53	$1,950.00	8/17/10	$1,950.00	$0.00
9/30/10	$708,521.61	$4,875.00	11/19/10	$4,875.00	$0.00
12/31/10	$1,206,189.31	$6,500.00	3/9/11	$6,500.00	$0.00

*Post-Petition Accounts Payable should not include professionals' fees and expenses which have been incurred but not yet awarded by the Court. Post-Petition Accounts Payable should include professionals' fees and expenses authorized by Court Order but which remain unpaid as of the close of the period of the report.

VII. SCHEDULE OF COMPENSATION PAID TO INSIDERS

Name of Insider	Date of Order Authorizing Compensation	Authorized Gross Compensation*	Gross Compensation Paid During the Month
Anthony Rusnak	3/11/10	$148,000/year, plus additional amount in insider compensation request	$12,333.34

* Please indicate how compensation was identified in the order (e.g., $1,000/wk, $2,500/mo)

VIII. SCHEDULE OF OTHER AMOUNTS PAID TO INSIDERS

Name of Insider	Date of Order Authorizing Payment	Description	Amount Paid During the Month
None

IX. PROFIT AND LOSS STATEMENT

(ACCRUAL BASIS ONLY)

	Current Month			Cumulative Post-Petition
Sales/Revenue:
Gross Sales/Revenue		0.00			0.00
Less: Returns/Discounts		(0.00	)		(0.00	)
Net Sales/Revenue		0.00			0.00

Cost of Goods Sold:
Beginning Inventory at cost Purchases		0.00			0.00
Less: Ending Inventory at cost		(0.00	)		(0.00	)
Cost of Goods Sold (COGS)		0.00			0.00

Gross Profit
Other Operating Income (Itemize)		0.00			0.00

Operating Expenses:
Payroll - Insiders		13,633.34			330,793.69
Payroll - Other Employees		7,082.00			104,590.41
Payroll Taxes		1,584.74			31,927.38
Other Taxes (Itemize)		0.00			0.00
Depreciation and Amortization		0.00			0.00
Lease Expense		5,205.13			88,431.25
Insurance		0.00			185,198.83
Telephone and Utilities		186.64			16,419.38
Repairs, Maintenance, Janitorial, Office, Plant Service		201.00			8,976.34
Travel and Entertainment (Itemize)
Mileage, Parking and Auto		0.00			4,636.27
Meals		0.00			868.42
Airfare		0.00			12,500.00
Miscellaneous Operating Expenses (Itemize)
Insurance - Employees		0.00			(136,992.45	)
Salary Savings Plan Expense		0.00			13,154.34
Workers Compensation Insurance		459.62			6,027.36
Parking Services		350.00			7,200.00
Storage and Moving		211.00			11,098.00
Bank Service Charges		120.00			3,868.68
Payroll Fees		122.00			2,461.13
Office Supplies		101.98			428.67
Postage and Shipping		0.00			1,194.70
Dues and Subscriptions		0.00			260.00
Employee Expense		0.00			(58.05	)
Advertising		0.00			(3,200.00	)
Taxes and Licenses		0.00			1,214.00
Fines, Penalties and Late Charges		0.00			2,815.63
Director Expense		0.00			5,000.00
US Trustee Fees		5.58			8,780.58
Total Operating Expenses		29,266.45			707,594.56

Net Gain/(Loss) from Operations		(29,266.45	)		(707,594.56	)

Non-Operating Income:
Interest on Cash Accounts		6,872.93			68,653.68
Gain (Loss) on Sale of Assets		0.00			29,384.84

Prudential Stock Dividends	0.00			1,332.10
Mark to Market on CSV of Life Insurance Policies	0.00			158,385.18
Income Taxes	0.00			2,703,141.71
Total Non-Operating income	6,872.93			2,960,897.51

Non-Operating Expenses:
Interest Expense		0.00			0.00
Legal Expense		145,652.73			2,438,220.72
Audit and Accounting		21,730.40			490,907.00
Consulting		2,914.50			78,924.57
Other (Itemize)		0.00			(3,371.55	)
Total Non-Operating Expenses		170,297.63			3,004,680.74
NET INCOME/(LOSS)		(192,691.15	)		(751,377.79	)

(Attach exhibit listing all itemizations required above)

X. BALANCE SHEET

(ACCRUAL BASIS ONLY)

	Current Month End
ASSETS
Current Assets:
Unrestricted Cash		10,446,359.49
Security Deposit Held by Landlord		30,971.51
Total Current Assets			10,477,331.00

Other Assets (Net of Amortization):
Due from Insiders		0.00
Other (Itemize)
Cash Improperly Withheld in former ICB account (City National Bank)		47,285.39
Residual Interest in Securities		268,160.90
Investment in ITLA Mortgage Loan Securitization 2002-1		75,000.00
Current and Deferred Income Taxes		29,297,406.00
Delaware Franchise Taxes		99,945.00
Prepaid Expenses, Net		47,698.83
Interests in Insurance Policies		441,240.00
Other		35,873.82

Total Other Assets			30,312,609.94

TOTAL ASSETS			40,789,940.94

LIABILITIES
Postpetition Liabilities:
Accounts Payable		0.00
Taxes Payable		0.00
Professional fees		0.00
Secured Debt		0.00
Total Postpetition Liabilities			0.00

Prepetition Liabilities:
Secured Liabilities		0.00
Priority Liabilities		0.00
Unsecured Liabilities		99,378,089.81

Total Prepetition Liabilities			99,378,089.81
TOTAL LIABILITIES			99,378,089.81

EQUITY:
Prepetition Owners' Equity	(57,741,774.08	)
Postpetition Profit/(Loss)	(751,377.79	)
Direct Charges to Equity	(94,997.00	)
TOTAL EQUITY			(58,588,148.87	)

TOTAL LIABILITIES & EQUITY			40,789,940.94

XI. QUESTIONNAIRE

1.	Has the debtor-in-possession made any payments on its pre-petition unsecured debt, except as have been authorized by the court?

X No.

____ Yes. Explain ________________________________________________________________________________________________

_________________________________________________________________________________________________________________

2.	Has the debtor-in-possession during this reporting period provided compensation or remuneration to any officers, directors, principals, or other insiders without appropriate authorization?

X No.

_____ Yes. Amount, to whom, and for what period? _______________________________________________________________________________

______________________________________________________________________________________________________________________________

3. State what progress was made during the reporting period toward filing a plan of reorganization:

On October 4, 2010, the Debtor filed a liquidating plan with the Court. The Debtor and Official Committee of Unsecured Creditors are negotiating the terms of an amended plan.

4. Describe potential future developments which may have a significant impact on the case.

The Debtor has filed two adversary proceedings against the FDIC, and has objected to the priority proof of claim asserted by the FDIC. The outcome of the Debtor/FDIC litigation will determine the amount available for distribution to creditors.

5.	Attach copies of all Orders granting relief from the automatic stay that were entered during the reporting period. NONE

6. Did you receive any exempt income this month, which is not set forth in the operating report?

X No.

____ Yes. Please set forth the amounts and the source of the income.

______________________________________________________________________________________________________________________
______________________________________________________________________________________________________________________

______________________________________________________________________________________________________________________

I, Anthony Rusnak, Chief Operating Officer (Name and title), declare under penalty of perjury that I have fully read and understood the foregoing debtor-in-possession operating report and that the information contained herein is true and complete to the best of my knowledge.

Date: March 18, 2011			/s/ Anthony Rusnak
			Principal for debtor-in-possession

LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD

TRANSFERS TO OTHER DIP ACCOUNTS

DISBURSEMENTS