<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1999
Commission File Number: 0-21385
WESTWOOD HOMESTEAD FINANCIAL CORPORATION
----------------------------------------
(Exact name of small business issuer as specified in its charter)
INDIANA 31-1463057
------- ----------
(State of Incorporation) (I.R.S. Employer
Identification No.)
3002 HARRISON AVENUE, CINCINNATI, OHIO 45211-5789
- -------------------------------------- ----------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (513) 661-5735
Indicate by checkmark whether the registrant (1) filed all reports
required to be filed by Section 13 or 15(d) of the Exchange Act during the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days: Yes X No .
--- ---
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practical date. Shares outstanding at
September 30, 1999 common stock, $.01 par value: 2,168,818.
<PAGE> 2
CONTENTS
PAGE
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Statements of Financial Condition as of
September 30, 1999 (Unaudited) and December 31, 1998............. 1
Consolidated Statements of Income for the Three Months
and Nine Months Ended September 30, 1999 and 1998 (Unaudited).... 2
Consolidated Statements of Cash Flows for the Nine
Months Ended September 30, 1999 and 1998 (Unaudited)............. 3
Notes to Consolidated Financial Statements (Unaudited)........... 4
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations............................ 5
Item 3. Quantitative and Qualitative Disclosures About Market Risk 9
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.............................................. 10
Item 2. Changes in Securities.......................................... 10
Item 3. Defaults Upon Senior Securities................................ 10
Item 4. Submission of Matters to a Vote of Security-Holders............ 10
Item 5. Other Information.............................................. 10
Item 6. Exhibits and Reports on Form 8-K............................... 10
SIGNATURES
<PAGE> 3
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
WESTWOOD HOMESTEAD FINANCIAL CORPORATION
Consolidated Statements of Financial Condition
<TABLE>
<CAPTION>
(Unaudited)
September 30, 1999 December 31, 1998
------------------ -----------------
<S> <C> <C>
ASSETS
Cash and cash equivalents $ 3,583,084 $ 5,009,850
Mortgage backed securities available for sale 5,483,218 1,529,042
Loans receivable, net 135,649,663 118,926,081
Stock in Federal Home Loan Bank 1,538,900 1,141,400
Accrued interest receivable 809,320 717,818
Premises and equipment, net 2,128,140 2,176,233
Prepaid expenses and other assets 516,007 370,367
------------- -------------
Total assets $ 149,708,332 $ 129,870,791
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 95,536,001 $ 87,335,911
Federal Home Loan Bank advances 30,243,046 17,453,551
Advances from borrowers for taxes and insurance 567,140 789,478
Income taxes 381,934 133,823
Accrued expenses and other liabilities 103,872 181,518
------------- -------------
Total liabilities 126,831,993 105,894,281
Stockholders' equity:
Common stock, $.01 par value, 15,000,000
shares authorized, 2,843,375 shares issued 28,434 28,434
Additional paid in capital 18,770,022 18,811,404
Retained income 15,717,516 15,514,498
Employee Stock Ownership Plan (2,259,148) (2,419,063)
Management recognition plan (1,089,818) (1,323,363)
Treasury Stock, 674,557 and 514,557 shares at cost (8,288,697) (6,647,447)
Accumulated other comprehensive income (1,970) 12,047
------------- -------------
Total stockholders' equity 22,876,339 23,976,510
============= =============
Total liabilities and stockholders' equity $ 149,708,332 $ 129,870,791
============= =============
</TABLE>
See accompanying notes.
1
<PAGE> 4
WESTWOOD HOMESTEAD FINANCIAL CORPORATION
Consolidated Statements of Income
(Unaudited)
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
---------------------------- ----------------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Interest income:
Loans receivable $2,709,052 2,378,123 $7,623,691 7,278,046
Mortgage-backed securities 81,294 31,625 157,601 98,480
Investment securities -- -- -- 10,254
Interest-bearing deposits with banks 53,215 116,821 199,529 307,205
---------------------------- ----------------------------
Total interest income 2,843,561 2,526,569 7,980,821 7,693,985
---------------------------- ----------------------------
Interest expense:
Deposits 1,172,881 1,127,707 3,388,364 3,430,582
Borrowings 426,245 251,402 1,010,554 732,788
---------------------------- ----------------------------
Total interest expense 1,599,126 1,379,109 4,398,918 4,163,370
---------------------------- ----------------------------
Net interest income 1,244,435 1,147,460 3,581,903 3,530,615
Provision for loan losses 10,048 22,160 33,161 35,871
---------------------------- ----------------------------
Net interest income after provision for loan losses 1,234,387 1,125,300 3,548,742 3,494,744
---------------------------- ----------------------------
Non-interest income:
Gain on loan sales -- 34,285 77,351 368,280
Service charges and fees 52,468 41,651 142,924 113,172
---------------------------- ----------------------------
Total non-interest income 52,468 75,936 220,275 481,452
---------------------------- ----------------------------
Non-interest expenses:
Compensation and benefits 481,787 423,548 1,377,577 1,347,892
Occupancy costs 74,974 65,049 241,151 179,397
Franchise tax 65,856 113,390 200,917 340,970
Federal deposit insurance premiums 12,694 12,652 38,418 39,750
Data processing 27,277 17,129 85,147 71,198
Legal, accounting and examination fees 81,560 49,614 118,378 128,269
Consulting fees 53,975 5,505 63,746 33,776
Advertising 26,324 14,211 63,566 37,656
Other 88,947 73,467 246,675 237,892
---------------------------- ----------------------------
Total non-interest expenses 913,394 774,565 2,435,575 2,416,800
---------------------------- ----------------------------
Income before income tax expense 373,461 426,671 1,333,442 1,559,396
Income tax expense 163,000 147,000 479,000 557,000
---------------------------- ----------------------------
Net income $ 210,461 279,671 $ 854,442 1,002,396
============================ ============================
Earnings per share, basic and diluted $ 0.11 $ 0.13 $ 0.44 $ 0.42
</TABLE>
See accompanying notes.
2
<PAGE> 5
WESTWOOD HOMESTEAD FINANCIAL CORPORATION
Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Nine months ended September 30,
1999 1998
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net income $ 854,442 $ 1,002,396
Adjustments to reconcile net income to net cash provided by
operating activities:
Net amortization of premium and discounts 24,295 8,039
Depreciation of premises and equipment 169,754 126,023
Federal Home Loan Bank stock dividend (67,600) (57,800)
Provision for loan loss 33,161 35,871
Gain on loan sales (77,351) (368,280)
Net loans originated for sale (4,872,964) (8,400,761)
Proceeds from sale of loans 5,238,474 17,867,615
Management Recognition Plan amortization 206,355 194,807
Employee Stock Ownership Plan amortization 145,723 229,925
Change in:
Accrued interest receivable (91,502) (9,177)
Prepaid expenses and other assets (145,640) (385,624)
Accrued expenses (22,335) 42,679
Income taxes 200,000 254,239
------------ ------------
Net cash provided by operating activities 1,594,812 10,539,952
------------ ------------
Cash flows from investing activities:
Proceeds from maturing investment security -- 1,000,000
Principal payments on mortgage backed securities 994,924 437,478
Purchase mortgage backed securities (4,994,612) --
Purchase of Federal Home Loan Bank Stock (329,900) (40,100)
Net increase in loans receivable (17,044,902) (6,128,216)
Additions to premises and equipment (121,661) (1,041,182)
------------ ------------
Net cash used in investing activities (21,496,151) (5,772,020)
------------ ------------
Cash flows from financing activities
Net (decrease) increase in deposits 8,200,090 (3,294,488)
Cash dividends (651,424) (574,575)
Purchase of common stock for treasury (1,641,250) (5,517,822)
Purchase of common stock for MRP -- (607,622)
Proceeds from Federal Home Loan Bank advances 17,800,000 2,000,000
Repayment of Federal Home Loan Bank advance (5,010,505) (7,905)
Net decrease in advances from borrowers for taxes and insurance (222,338) (345,828)
------------ ------------
Net cash (used) provided by financing activities 18,474,573 (8,348,240)
------------ ------------
Net decrease in cash and cash equivalents (1,426,766) (3,580,308)
Beginning cash and cash equivalents 5,009,850 10,368,279
------------ ------------
Ending cash and cash equivalents $ 3,583,084 $ 6,787,971
============ ============
</TABLE>
See accompanying notes.
3
<PAGE> 6
WESTWOOD HOMESTEAD FINANCIAL CORPORATION
Notes to Consolidated Financial Statements
(Unaudited)
September 30, 1999 and December 31, 1998
(1) Basis of Presentation
The financial statements were prepared in accordance with the
instructions for Form 10-Q and therefore, do not include all
disclosures necessary for a complete presentation of financial
condition, income and cash flows in conformity with generally accepted
accounting principles. However, these financial statements have been
prepared on a basis consistent with the annual financial statements and
include, all adjustments consisting only of normal recurring
adjustments which are, in the opinion of management, necessary for the
fair presentation of the interim financial statements.
(2) Comprehensive Income
Comprehensive income includes net income and other comprehensive
income, which for the Company includes unrealized gains and losses on
securities available for sale.
<TABLE>
<CAPTION>
Nine months ended September 30
----------------------------------
1999 1998
---- ----
<S> <C> <C>
Net Income $ 854,442 $ 1,002,396
Other comprehensive income, net of tax:
Unrealized holding losses arising during the period (14,017) (7,375)
---------- -----------
Comprehensive income $ 840,425 $ 995,021
========== ===========
</TABLE>
(3) Earnings Per Share
The following table presents the numerators (net income) and
denominators (average shares outstanding) for the basic and diluted net
income per share computations for the three and nine months ended
September 30:
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
=========================== =========================
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net income, basic and diluted $ 210,461 279,671 $ 854,442 1,002,396
Average shares outstanding 1,894,916 2,221,199 1,941,049 2,380,849
Effect of dilutive securities 4,024 8,496 2,242 9,138
----------- ---------- ----------- ----------
Average shares outstanding
including dilutive shares 1,898,940 2,229,695 $ 1,943,291 2,389,987
=========== ========== =========== ==========
Net income per share, basic $ 0.11 $ 0.13 $ 0.44 $ 0.42
=========== ========== =========== ==========
Net income per share, diluted $ 0.11 $ 0.13 $ 0.44 $ 0.42
=========== ========== =========== ==========
</TABLE>
4
<PAGE> 7
(4) Consolidated Statement of Changes in Stockholders' Equity (Unaudited)
<TABLE>
<CAPTION>
Nine months ended September 30,
----------------------------------
1999 1998
------------ ------------
<S> <C> <C> <C>
Balance, January 1 $ 23,976,510 $ 30,145,712
Net Income 854,442 1,002,396
Dividends on common stock (651,424) (574,575)
Purchase of shares by management recognition plan -- (607,622)
Amortization of management recognition plan 206,355 194,807
Amortization of employee stock ownership plan 145,723 229,925
Purchase of treasury stock (1,641,250) (5,517,822)
Unrealized loss on securities available for sale, net of tax (14,017) (7,375)
------------ ------------
Balance, end of period $ 22,876,339 $ 24,865,446
============ ============
</TABLE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
PROPOSED SALE OF THE COMPANY
On August 6,1999 Westwood Homestead Financial Corporation announced the
signing of a definitive agreement for a strategic alliance with Camco Financial
Corporation. Westwood Homestead Savings Bank will continue independent
operations as a member of Camco's family of community banks. The merger will be
accounted for as a purchase. Consummation is subject to shareholder and
regulatory approval and is expected in the first quarter of 2000. Westwood
Homestead shareholders will receive 0.611 shares of Camco common stock and $5.20
cash for each Westwood Homestead share.
COMPARISON OF FINANCIAL CONDITION AT SEPTEMBER 30, 1999 AND DECEMBER 31, 1998
Total assets increased $19.8 million, or 15.2% from $129.9 million at
December 31, 1998 to $149.7 million at September 30, 1999. Loans receivable
increased $16.7 million, or 14.1% from $118.9 million at December 31, 1998 to
$135.6 million at September 30, 1999. To help manage interest rate risk, $5.0
million of adjustable rate mortgage backed securities were purchased increasing
the investment portfolio to $5.5 million at September 30, 1999.
Total liabilities increased $20.9 million from $105.9 million at
December 31, 1998 to $126.8 million at September 30, 1999. Deposits increased
$8.2 million during the nine month period while Federal Home Loan Bank advances
increased $12.7 million to $30.2 million at September 30, 1999.
Stockholders' equity decreased $1.1 million primarily as a result of
the 160,000 shares of Company stock repurchased during the nine month period at
a cost of $1.6 million. The Company's equity to asset ratio has been reduced
from 33.3% at September 30, 1996 to 15.3% at September 30, 1999.
5
<PAGE> 8
COMPARISON OF OPERATING RESULTS FOR THE QUARTER AND NINE MONTHS ENDED
SEPTEMBER 30, 1999 AND 1998
Net Income. Net income for the quarter ended September 30, 1999 was
$210,000, or 11 cents per share, as compared with $280,000, or 13 cents per
share, for the quarter ended September 30, 1998. Included in the quarter are
$119,000 of expenses relating to the merger with Camco Financial (NASDAQ - CAFI)
scheduled to close in first quarter 2000. Excluding these merger related
expenses the Company earned $330,000, or 17 cents per share. Return on average
equity and return on average assets were 3.64% and 0.58%, respectively, for the
quarter ended September 30, 1999 compared to 4.85% and 0.83%, respectively, for
the same quarter in 1998. Net income for the nine months ended September 30,
1999 was $854,000, or 44 cents per share, as compared with $1,002,000, or 42
cents per share, for the nine months ended September 30, 1998.
Net Interest Income. Net interest income increased $97,000 to
$1,244,000 for the quarter ended September 30, 1999 from $1,147,000 for the
quarter ended September 30, 1998. This increase was achieved despite a $2.9
million decrease in average equity due to the stock repurchases in the last
twelve months. Average net interest rate spread increased 8 basis points to
2.80% for the quarter ended September 30, 1999 as compared to 2.72% for the same
quarter in 1998. Net interest income for the nine months ended September 30,
1999 increased $51,000 to $3,582,000 from $3,531,000 for the nine months ended
September 30, 1998 as a $4.4 million decrease in average equity was more than
offset by a 24 basis point increase in the net interest rate spread.
Interest Income. Interest income increased $317,000 to $2.8 million for
the quarter ended September 30, 1999. The average balance of interest earning
assets increased $19.5 million from the same quarter in 1998 while the average
yield decreased 24 basis points to 8.04%. Interest income on loans receivable
increased $331,000, or 13.9%, to $2,709,000 for the quarter ended September 30,
1999 from $2,378,000 for the quarter ended September 30, 1998. The average
balance of loans receivable increased $20.0 million to $132.1 million for the
quarter ended September 30, 1999 from the same quarter a year ago while the
average yield decreased 28 basis points to 8.20%. The average balance of
investments and other earning assets decreased $430,000 from the year ago
quarter and a 31 basis point decrease in yield resulted in $14,000 less in other
interest income. Interest income increased $287,000 to $8.0 million for the nine
months ended September 30, 1999 from $7.7 million for the nine months ended
September 30, 1998. As of September 30, 1999 loans receivable represented 90.6%
of total assets as compared to 89.9% at September 30, 1998.
Interest Expense. Interest expense increased $220,000 to $1,599,000 for
the quarter ended September 30, 1999 from $1,379,000 for the quarter ended
September 30, 1998. This increase is due to a $22.9 million increase in average
interest bearing liabilities and a decrease in the average cost to 5.24% for the
quarter ended September 30, 1999 from 5.56% for the quarter ended September 30,
1998. The decrease in cost was primarily the result of maturing high rate long
term C.Ds and lower rate advances. Interest expense increased $236,000 on $14.4
million more in interest bearing liabilities for the nine months ended September
30, 1999 as the average cost decreased 44 basis points.
Provision for Loan Losses. The Bank recorded provisions for loan losses
of $10,000 and $22,000 during the quarters ended September 30, 1999 and 1998,
respectively. The loan portfolio is regularly reviewed by management, including
problem loans, and changes in the relative makeup to determine whether any loans
require classification or the establishment of additional reserves.
Non-Interest Income. Non-interest income decreased $24,000 to $52,000
for the quarter ended September 30, 1999 from $76,000 for the quarter ended
September 30, 1998. A shift in Westwood Homestead's business plan to reduce loan
sales and grow the balance sheet has resulted in no gains from loan sales in the
current quarter as compared to $34,000 in the quarter ended September 30, 1998.
Service charges and fees increased $10,000 to $52,000 for the quarter ended
September 30, 1999 from $42,000 for the quarter
6
<PAGE> 9
ended September 30, 1998. This 23.8% increase reflects the Bank's emphasis on
attracting new checking accounts in the last year. Non-interest income decreased
$261,000 to $220,000 for the nine months ended September 30, 1999 from $481,000
for the nine months ended September 30, 1998 due largely to a nonrecurring
pretax gain of $217,000 from the sale of $9.1 million of fixed rate mortgages
recorded during the nine months ended September 30, 1998.
Non-Interest Expense. Non-interest expense increased $138,000 to
$913,000 for the quarter ended September 30, 1999 from $775,000 for the quarter
ended September 30, 1998. Compensation and benefits increased $58,000 during the
quarter ended September 30, 1999 as compared to the quarter ended September 30,
1998 primarily due to increased benefit expenses. The lower capital levels
reduced state franchise tax by $47,000 from the previous year. Merger related
expenses of $119,000 caused an increase in legal and consulting fees. Radio and
television promotions during the quarter increased advertising expenses by
$12,000 over the previous year. Non-interest expense increased $19,000 to
$2,436,000 for the nine months ended September 30, 1999 from $2,417,000 for the
nine months ended September 30, 1998.
Income Taxes. The Company recorded federal income tax expense of
$479,000 and $557,000 for the nine months ended September 30, 1999 and 1998,
respectively.
LIQUIDITY AND CAPITAL RESOURCES
Cash and cash equivalents totaled $3.6 million at September 30, 1999
which consisted primarily of overnight federal funds. Management believes that
current liquidity levels are adequate to fund daily operations.
The Bank is subject to various regulatory capital requirements
administered by the federal banking agencies. Failure to meet minimum capital
requirements can initiate certain mandatory - and possibly additional
discretionary actions by regulators that, if undertaken, could have a direct
material effect on the Company's consolidated financial statements. Quantitative
measures established by regulation to ensure capital adequacy require the Bank
to maintain minimum amounts and ratios ( set forth in the table below ) of
Tangible, Tier I/Core and Risk-based capital (as defined in the regulations).
Management believes, as of September 30, 1999, that the Bank meets all capital
adequacy requirements to which it is subject.
<TABLE>
<CAPTION>
To Be Well Capitalized
For Capital Under Prompt Corrective
Actual Adequacy Purposes Action Provision
------------------------- ------------------- ----------------------
Amount Ratio Amount Ratio Amount Ratio
------ ----- ------ ----- ------ -----
<S> <C> <C> <C> <C> <C> <C>
Tangible Capital $ 22,214,235 15.27% 2,181,824 1.50% 7,272,747 5.00%
Tier I/Core Capital 22,214,235 15.27% 4,363,648 3.00% 8,727,297 6.00%
Risk-based Capital 22,541,082 25.34% 7,117,280 8.00% 8,896,600 10.00%
</TABLE>
7
<PAGE> 10
YEAR 2000 READINESS DISCLOSURE
The paragraphs of this section constitute a "Year 2000 Readiness Disclosure" as
defined in the Year 2000 Information and Readiness Disclosure Act (Pub. L. No.
105-271). The Company faces risks associated with the Year 2000 date change
similar to those faced by other financial institutions. Assessing, remediating,
and testing information technology systems for Year 2000 compliance has been a
top priority for the Company. A Year 2000 plan has been approved by the Board of
Directors which includes multiple phases, tasks to be completed, and target
dates for completion. Issues addressed therein include awareness, assessment,
renovation, validation, implementation, testing, and contingency planning.
The Company has assigned the Manager of Information Systems to oversee the Year
2000 project. The Company has completed its awareness, assessment and renovation
phases. The Company has completed the testing phase with satisfactory results in
all areas. Most of the material data processing that could be affected by this
problem is provided by the third party service bureau, Fiserv. Fiserv has
represented to management that all of the core data processing code has been
renovated to address the Year 2000 issue.
The Company's vendors and suppliers have been contacted for written confirmation
of their product readiness for Year 2000 compliance. Negative or deficient
responses are analyzed and periodically reviewed to prescribe timely actions
within the Company's contingency planning. The Company's main service provider
has completed testing of its mission critical application software and item
processing software; the test results, which have been documented and validated,
indicate the software to be Year 2000 compliant. The Company has authorized the
acceptance of proxy testing by selected data exchange service providers. Federal
Financial Institution Examination Council ("FFIEC") guidance on testing Year
2000 compliance of service providers states that proxy tests are acceptable
compliance tests. In proxy testing, the service provider tests with a
representative sample of financial institutions that use a particular service,
with the results of such testing shared with all similarly situated clients of
the service providers. since the proxy tests have been conducted with financial
institutions that are similar in type and complexity to its own, using the same
version of the Year 2000 ready software and the same hardware and operating
systems. The test results, which have been documented and validated indicate the
data exchange software and item processing activities to be Year 2000 compliant.
The Company also recognizes the importance of determining that its borrowers are
facing the Year 2000 problem in a timely manner to avoid deterioration of the
loan portfolio solely due to this issue. All material relationships have been
identified and questionnaires have been sent to assess the inherent risks. The
Company plans to work on a one-on-one basis with any borrower who has been
identified as having high Year 2000 risk exposure.
Accordingly, management does not believe that the Company has incurred or will
incur material costs associated with the Year 2000 issue since it routinely
upgrades and purchases technologically advanced software and hardware on a
continual basis. However, some reallocation of internal resources and will be
required. There can be no assurances that all hardware and software that the
Company will use will be Year 2000 compliant. Management cannot predict the
amount of financial difficulties it may incur due to customers and vendors
inability to perform according to their agreements with the Company or the
effects that other third parties may cause as a result of this issue. Therefore,
there can be no assurance that the failure or delay of others to address the
issue or that the costs involved in such process will not have a material
adverse effect on the Company's business, financial condition, and results of
operations.
Based on testing results, the Company's mission critical systems have been
deemed to be Year 2000 compliant. Therefore, the Company's contingency plan is
focused on business continuity issues affected by service outages not directly
related to Year 2000 date processing activities. With regards to non-mission
critical systems, the Company's contingency plans are to replace those systems
that test as being noncompliant. Alternatively, some systems could be handled
manually on an interim basis. It is anticipated that the
8
<PAGE> 11
Company's deposit customers will have increased demands for cash in the fourth
quarter of 1999 and correspondingly the Company will maintain higher liquidity
levels.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Bank's September 30, 1999 analysis of the impact of changes in
interest rates on net interest income over the next 12 months indicate no
significant changes in the Bank's exposure to interest rate changes since
December 31, 1998. The table below illustrates the simulation analysis of the
impact of a 100 or 200 basis point upward or downward movement in interest
rates. The impact of the rate movement was simulated as if rates change
immediately from September 30, 1999 levels, and remained constant at those
levels thereafter.
<TABLE>
<CAPTION>
Movement in September 30, 1999 interest rates
----------------------------------------------------
+100 bps +200 bps -100 bps -200 bps
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net interest income change ($357,000) ($715,000) $301,000 $603,000
Net income per share change ($0.12) ($0.25) $0.10 $0.21
</TABLE>
<PAGE> 12
PART II OTHER INFORMATION
1. ITEM LEGAL PROCEEDINGS
Although the Bank, from time to time, is involved in various legal
proceedings in the normal course of business, there are no material legal
proceedings to which the Bank is a party or to which any of its property is
subject.
2. ITEM CHANGES IN SECURITIES
None
3. ITEM DEFAULTS UPON SENIOR SECURITIES
None
4. ITEM SUBMISSION OF MATTERS TO A VOTE OF SECURITY-HOLDERS
None
5. ITEM OTHER INFORMATION
None
6. ITEM EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits. The following exhibits are being filed with this report.
Exhibit Description
------- -----------
27 Financial Data Schedule
(b) Reports on Form 8-K. With the exception of the Form 8-K filed on
August 12, 1999 to announce the signing of a definitive agreement with Camco
Financial, there were no reports on Form 8-K filed during the last quarter of
the fiscal year covered by this report.
10
<PAGE> 13
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
WESTWOOD HOMESTEAD FINANCIAL CORPORATION
Date: November 12, 1999 By: /s/ Michael P. Brennan
--------------------------------
Michael P. Brennan
(Principal Executive Officer)
Date: November 12, 1999 By: /s/ John E. Essen
--------------------------------
John E. Essen
(Principal Financial Officer)
11
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 462
<INT-BEARING-DEPOSITS> 1,661
<FED-FUNDS-SOLD> 1,460
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 5,483
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 135,977
<ALLOWANCE> 327
<TOTAL-ASSETS> 149,708
<DEPOSITS> 95,536
<SHORT-TERM> 1,000
<LIABILITIES-OTHER> 1,053
<LONG-TERM> 29,243
0
0
<COMMON> 28
<OTHER-SE> 22,848
<TOTAL-LIABILITIES-AND-EQUITY> 22,876
<INTEREST-LOAN> 7,624
<INTEREST-INVEST> 158
<INTEREST-OTHER> 199
<INTEREST-TOTAL> 7,981
<INTEREST-DEPOSIT> 3,388
<INTEREST-EXPENSE> 4,399
<INTEREST-INCOME-NET> 3,582
<LOAN-LOSSES> 33
<SECURITIES-GAINS> 77
<EXPENSE-OTHER> 2,436
<INCOME-PRETAX> 1,333
<INCOME-PRE-EXTRAORDINARY> 1,333
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 854
<EPS-BASIC> .44
<EPS-DILUTED> .44
<YIELD-ACTUAL> 2.80
<LOANS-NON> 210
<LOANS-PAST> 186
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 294
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 327
<ALLOWANCE-DOMESTIC> 327
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
