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

IMPERIAL CAPITAL BANCORP, INC. - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - January 6, 2011

Attached files

Attached files

file	filename
8-K - FORM 8-K - IMPERIAL CAPITAL BANCORP, INC.	t69495_8k.htm
EX-99.2 - EXHIBIT 99.2 - IMPERIAL CAPITAL BANCORP, INC.	ex99-2.htm
EX-99.3 - EXHIBIT 99.3 - IMPERIAL CAPITAL BANCORP, INC.	ex99-3.htm

Exhibit 99.1

UNITED STATES DEPARTMENT OF JUSTICE

OFFICE OF THE UNITED STATES TRUSTEE

SOUTHERN DISTRICT OF CALIFORNIA


In Re:		CHAPTER 11 (BUSINESS)
		CASE NO. 3:09-bk-19431
IMPERIAL CAPITAL BANCORP, INC., a		OPERATING REPORT NO. 10
Delaware corporation		FOR THE MONTH ENDING:
		SEPTEMBER 2010
Debtor(s).

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			$	5,825,065.64

3.	BEGINNING BALANCE:				$	127,656.88

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:				$	127,656.88

6.	LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD


	TRANSFERS TO OTHER DIP ACCOUNTS	$	127,656.88
	DISBURSEMENTS	$	0.00
	TOTAL DISBURSEMENTS THIS PERIOD***:			$	127,656.88

7.	ENDING BALANCE:			$	0.00

8.	GENERAL ACCOUNT NUMBER__________________________
	DEPOSITORY NAME AND LOCATION Bank of America, 1655 Grant Street Bldg A, 10th Floor, Concord, CA 94520-2445

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: 9/30/10		$	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 ACCOUNT)


1.	TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS				$	5,680,461.00

2.	LESS:	TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS			$	5,500,269.83

3.	BEGINNING BALANCE:				$	180,191.17

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		$	25,764.48
	OTHER (SPECIFY) Asset sales		$	105,500.53
	OTHER (SPECIFY) Refunds		$	15,371.38
	OTHER (SPECIFY) Transfer from Bank of America account		$	127,656.88

	TOTAL RECEIPTS THIS PERIOD:				$	274,293.27
5.	BALANCE:				$	454,484.44

6.	LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD

	TRANSFERS TO OTHER DIP ACCOUNTS	$	46,765.26
	DISBURSEMENTS	$	205,463.50
	TOTAL DISBURSEMENTS THIS PERIOD***:			$	252,228.76

7.	ENDING BALANCE:			$	202,255.68

8.	GENERAL ACCOUNT NUMBER__________________________
	DEPOSITORY NAME AND LOCATION Torrey Pines Bank, 4350 Executive Drive, Suite 130, San Diego, CA 92121

TOTAL DISBURSEMENTS FROM GENERAL ACCOUNT FOR CURRENT PERIOD

DATE	CHECK NUMBER	PAYEE	PURPOSE		AMOUNT
09/02/10	1043	State Compensation Insurance Fund	Workers compensation insurance premium		459.62
09/01/10	1044	Time Warner Cable	Internet services		186.47
09/01/10	1045	Mellon Investor Services	Stock transfer agent		3,339.82
09/07/10	1047	Freedom Voice	Telephone services		185.23
09/08/10	1048	888 Prospect LJ, LLC	Office rent		6,440.56
09/07/10	1049	A Quality Connection	Telephone maintenance		168.75
09/07/10	1050	Takeo Sasaki	Consulting – accounting services		1,768.50
09/14/10	1051	Union Bank	Trustee fees for employee benefit plans		4,962.60
09/09/10	1052	Ace Parking Management	Parking services		350.00
09/13/10	1053	Public Storage	Storage services		805.75
09/15/10	1054	Verizon Wireless	Telephone services		220.65
09/20/10	1055	Stutman, Treister & Glatt	Legal services		144,165.33
09/15/10	1057	UPS	Shipping services		211.01
09/14/10	1058	San Diego Gas & Electric	Utilities		558.86
09/20/10	1059	Mellon Investor Services	Stock transfer agent		175.70
09/16/10	1060	Lincoln National Insurance Company	Health insurance premiums		34.00
09/16/10	1061	Lincoln National Insurance Company	Health insurance premiums		82.00
09/16/10	1062	Lincoln National Insurance Company	Health insurance premiums		312.07
09/21/10	1063	Mass Mutual	Retirement plan expense		7.97
09/02/10	Bank Debit	Torrey Pines Bank	Wire transfer fee		10.00
09/13/10	Bank Debit	Torrey Pines Bank	Wire transfer fee		30.00
09/13/10	Bank Debit	Akin Gump Strauss Hauer & Feld	Wire transfer for legal fees		40,968.61
09/27/10	Bank Debit	Torrey Pines Bank	Wire transfer fee		10.00
09/30/10	Bank Debit	Torrey Pines Bank	Wire transfer fee		10.00

		TOTAL DISBURSEMENTS THIS PERIOD		$	205,463.50
Add additional pages as necessary to include all disbursements.

GENERAL ACCOUNT

BANK RECONCILIATION*

Balance per bank statement dated: 9/30/10

202,255.68

Plus deposits in transit (a):


	Deposit Date		Deposit Amount

			$
			$
			$

	Total deposits in transit

Less outstanding checks (a):


Check Number	Check Date		Check Amount

1056	09/10/10	$	301.34
1064	09/30/10	$	160.00

	Total outstanding checks	<	461.34>

Bank statement adjustments**

Adjusted bank balance		$	201,794.34

*	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 OTHER 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: 9/30/10		$	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

I. CASH RECEIPTS AND DISBURSEMENTS (Continued)

B.2 (TORREY PINES PAYROLL ACCOUNT)


1.	TOTAL RECEIPTS PER ALL PRIOR PAYROLL ACCOUNT REPORTS				$	165,872.38

2.	LESS: TOTAL DISBURSEMENTS PER ALL PRIOR PAYROLL ACCOUNT REPORTS				$	165,465.92

3.	BEGINNING BALANCE				$	406.46

4.	RECEIPTS:
	TRANSFERRED FROM OTHER ACCOUNT
	(Torrey Pines Bank general account)				$	32,347.80

5.	BALANCE				$	32,754.26

6.	LESS: DISBURSEMENTS DURING CURRENT PERIOD

	DATE	CHECK NO.	PAYEE	AMOUNT
	09/14/10	Payroll fee	NPS Payroll Services	64.00
	09/14/10	Transfer payroll 9/1 to 9/15	NPS Payroll Services	4,875.69
	09/14/10	Transfer payroll 9/1 to 9/15	NPS Payroll Services	11,234.21
	09/29/10	Payroll fee	NPS Payroll Services	64.00
	09/29/10	Transfer payroll 9/16 to 9/30	NPS Payroll Services	4,866.48
	09/29/10	Transfer payroll 9/16 to 9/30	NPS Payroll Services	11,243.42

	TOTAL DISBURSEMENTS THIS PERIOD:				$	32,347.80

7.	ENDING BALANCE:				$	406.46

8.	PAYROLL ACCOUNT NUMBER __________________________________
	DEPOSITORY NAME AND LOCATION Torrey Pines Bank, 4350 Executive Drive, Suite 130, San Diego, CA 92121

PAYROLL ACCOUNT

BANK RECONCILIATION*


Balance per bank statement dated: 9/30/10		$	406.46

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		$	406.46

*	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		$	0.00

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

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

TAX ACCOUNT
BANK RECONCILIATION*


Balance per bank statement dated: ____________________		$	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

D. SUMMARY SCHEDULE OF CASH


ENDING BALANCE FOR PERIOD:
GENERAL ACCOUNT – Bk of America	$	0.00
GENERAL ACCOUNT – Torrey Pines Bk	$	202,255.68
PAYROLL ACCOUNT – Bk of America	$	0.00
PAYROLL ACCOUNT – Torrey Pines Bk	$	406.46
TAX ACCOUNT	$	0.00
OTHER ACCOUNTS*:
Torrey Pines Bank
4350 Executive Drive, Suite 130
San Diego, CA 92121
Money Market Account #	$	5,011,962.80

Torrey Pines Bank
4350 Executive Drive, Suite 130
San Diego, CA 92121
Rabbi Trust Assets
Money Market Account #	$	6,845,360.13

OTHER MONIES*:_______________	$
PETTY CASH**	$	250.00

TOTAL CASH AVAILABLE	$	12,060,235.07

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

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

6,440.56

None

TOTAL DUE

None

III. TAX LIABILITIES


FOR THE REPORTING PERIOD:
GROSS SALES SUBJECT TO SALES TAX	$	0
TOTAL WAGES PAID	$	30,715.34

	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

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

3/15/11

Worker Compensation

State Fund

$1,000,000/occurrence

2/15/11

October 2010

Vehicle

Hartford

$1,000,000/occurrence

3/15/11

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	$	708,521.60	$	4,875.00				$	4,875.00

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

Joseph W. Kiley, III

3/11/10

$10,000/month

10,000.00

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		0.00			0.00
Payroll - Other Employees		30,715.34			291,807.40
Payroll Taxes		1,504.46			23,085.46
Other Taxes (Itemize)		0.00			0.00
Depreciation and Amortization		0.00			0.00
Lease Expense		6,440.56			57,965.04
Insurance		16,283.52			168,915.36
Telephone and Utilities		(161.60	)		11,683.64
Repairs, Maintenance, Janitorial, Office, Plant Service		328.75			5,372.03
Travel and Entertainment (Itemize)
Mileage, Parking and Auto		229.95			2,594.89
Meals		65.85			820.48
Airfare		0.00			12,500.00
Miscellaneous Operating Expenses (Itemize)
Insurance – Employees		(13,989.39	)		(137,423.64	)
Workers Compensation Insurance		0.00			3,729.26
Parking Services		350.00			4,950.00
Storage and Moving		805.75			8,335.20
Bank Service Charges		70.00			3,634.43
Payroll Fees		128.00			2,107.25
Office Supplies		0.00			217.93
Postage and Shipping		203.74			531.33
Employee Expense		0.00			(58.05	)
Advertising		0.00			(1,000.00	)
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		0.00			3,900.00
Total Operating Expenses		42,974.93			472,697.64

Net Gain/(Loss) from Operations		(42,974.93	)		(472,697.64	)

Non-Operating Income:
Interest on Cash Accounts		6,128.65			27,329.35
Gain (Loss) on Sale of Assets		105,499.53			66,640.22
Prudential Stock Dividends		0.00			1,332.10
Mark to Market on CSV of Life Insurance Policies		314,468.62			158,385.18
Income taxes		0.00			2,703,141.71
Total Non-Operating income		426,096.80			2,956,828.56

Non-Operating Expenses:
Interest Expense		0.00			0.00
Legal Expense		262,373.97			1,575,835.41
Audit and Accounting		33,434.32			304,288.02
Consulting		6,914.77			49,215.85
Other (Itemize)		(205.71	)		(4,566.44	)
Total Non-Operating Expenses		302,517.35			1,924,772.84
NET INCOME/(LOSS)		80,604.52			559,358.08

(Attach exhibit listing all itemizations required above)

X. BALANCE SHEET

(ACCRUAL BASIS ONLY)


	Current Month End
ASSETS
Current Assets:
Unrestricted Cash		12,059,773.73
Other (Itemize)
Security Deposit Held by Landlord		30,971.51
Money Market Accounts		0.00
Total Current Assets				12,090,745.24

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		341,982.78
Investment in ITLA Mortgage Loan Securitization 2002-1		75,000.00
Automobiles		24,275.00
Furniture and Equipment		43,795.38
Current and Deferred Income Taxes		29,297,406.00
Delaware Franchise Taxes		99,945.00
Prepaid Expenses, Net		79,338.15
Interests in Insurance Policies		441,240.00
Interest in Rabbi Trust Agreement		25,635.02
Other		49,028.35

Total Other Assets				30,524,931.07

TOTAL ASSETS				42,615,676.31

LIABILITIES
Postpetition Liabilities:
Accounts 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		99,893,089.31
Total Prepetition Liabilities				99,893,089.31
TOTAL LIABILITIES				99,893,089.31

EQUITY:
Prepetition Owners’ Equity		(57,741,774.08	)
Postpetition Profit/(Loss)		559,358.08
Direct Charges to Equity		(94,997.00	)
TOTAL EQUITY				(57,277,413.00	)
TOTAL LIABILITIES & EQUITY				42,615,676.31

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:
	The Debtor filed for chapter 11 protection on December 18, 2009 just after the Federal Deposit Insurance Corporation (“FDIC”) seized its subsidiary, Imperial Capital Bank. The Debtor, its Board of Directors, and outside professionals are presently analyzing various restrucutring options to determine the best return for the Debtor’s unsecured creditors. Given that the Debtor is a public company with substantial net operating losses, the Debtor may be able to implement a business restructuring, rather than a chapter 11 liquidation. On October 4, 2010, the Debtor filed a liquidating plan with the Court.

4.	Describe potential future developments which may have a significant impact on the case.
	As stated above, the Debtor, its Board of Directors, and outside professionals are analyzing various restructuring options. The result of such analysis will dictate the future of the Debtor’s chapter 11 case. As mentioned above, on October 4, 2010, the Debtor filed a liquidating plan with the Court.




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, Joseph W. Kiley, III, Chief Executive 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:	October 20, 2010		/s/ Joseph W. Kiley
			Principal for debtor-in-possession

TOTAL DISBURSEMENTS THIS PERIOD:

ENDING BALANCE:

TAX ACCOUNT NUMBER ________________________________________________________________

DEPOSITORY NAME AND LOCATION Bank of America, 1655 Grant St, Bldg A, 10th Floor Concord, CA 94520-2445