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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1999
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____________ to ____________
Commission file number 0-21939
Pennwood Bancorp, Inc.
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(Exact Name of Small Business Issuer as Specified in Its Charter)
<TABLE>
<CAPTION>
<S> <C>
Pennsylvania 25-1783648
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(State or Other Jurisdiction of Incorporation or (I.R.S. Employer
Organization) Identification No.)
683 Lincoln Avenue
Pittsburgh, Pennsylvania 15202
- ----------------------------------------------------- ---------------------
(Address of Principal Executive Offices) (Zip Code)
</TABLE>
(412) 761-1234
-----------------------------------------
(Registrant's Telephone Number, Including Area Code)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 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
--- ---
Pennwood Bancorp, Inc. had 555,539 shares of common stock outstanding as
of February 11, 2000.
Transitional Small Business Disclosure Format (check one):
Yes ____ No __X__
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PENNWOOD BANCORP, INC.
TABLE OF CONTENTS
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PAGE
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PART I. FINANCIAL INFORMATION
- ------ ---------------------
ITEM 1. FINANCIAL STATEMENTS (unaudited) 3
Consolidated Balance Sheets as of December 31, 1999
and June 30, 1999 3
Consolidated Statements of Income for the three months
and six months ended December 31, 1999 and 1998 4
Consolidated Statements of Cash Flows for the six months
ended December 31, 1999 and 1998 5
Notes to Consolidated Financial Statements 7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS. 9
PART II.OTHER INFORMATION
- ------- -----------------
ITEM 1. LEGAL PROCEEDINGS. 13
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS. 13
ITEM 3. DEFAULTS UPON SENIOR SECURITIES. 13
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY-HOLDERS. 13
ITEM 5. OTHER INFORMATION. 13
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. 13
SIGNATURES
</TABLE>
2
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PART I. FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
PENNWOOD BANCORP, INC.
Consolidated Balance Sheets
(Unaudited)
(Dollars in Thousands Except Share Data)
<TABLE>
<CAPTION>
Dec. 31 June 30,
Assets 1999 1999
------ ---- ----
<S> <C> <C>
Cash and amounts due from depository institutions $1,355 $1,054
Money market investments at cost which approximates
market value 1,951 1,667
Investment and mortgage-backed securities:
Available-for-sale (Amortized cost of $3,841 and $3,514) 3,702 3,515
Held-to-maturity (Market value of $208 and $210) 205 207
Loans receivable, net 46,250 42,715
Real estate owned, net 87 86
Federal Home Loan Bank stock 750 400
Premises and equipment, net 2,199 1,340
Accrued interest receivable 332 299
Prepaid expenses and other assets 547 413
--- ---
Total assets $57,378 $51,696
======= =======
Liabilities and Shareholders' Equity
------------------------------------
Liabilities:
Savings deposits $34,442 $35,529
Advances from borrowers for taxes and insurance 371 463
Accrued interest payable 532 425
Borrowed funds 15,373 8,394
Accrued expenses and other liabilities 207 278
--- ---
Total liabilities 50,925 45,089
================================================================================
Shareholders' Equity:
Preferred stock, $.01 par value; 1,000,000 shares
authorized, none issued at Dec 31, 1999 and June 30, 1999 - -
Common Stock, $.01 par value; 4,000,000 shares authorized;
813,419 issued at December 31, 1999 and June 30, 1999 8 8
Additional paid-in capital 5,667 5,665
Retained earnings, substantially restricted 4,428 4,516
Treasury stock, at cost: 257,880 and 252,780 shares at December 31, 1999
and June 30, 1999, respectively. (3,090) (3,045)
Unearned Employee Stock Ownership Plan shares (317) (342)
Unearned common stock - Recognition and Retention Plan (160) (196)
Accumulated other comprehensive income (83) 1
-- -
Total shareholders' equity 6,453 6,607
Total liabilities and shareholders' equity $57,378 $51,696
======= =======
</TABLE>
See accompanying notes to unaudited consolidated financial statements
3
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Pennwood Bancorp, Inc.
Consolidated Statements of Income
(Unaudited)
(Dollars in Thousands except Per Share Data)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
December 31, December 31,
1999 1998 1999 1998
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<S> <C> <C> <C> <C>
Interest income:
Loans $921 $884 $1,808 $1,688
Investment securities 62 63 119 173
Mortgage backed securities 19 27 39 57
Federal funds sold & other investments 12 5 20 10
Money market investments 21 24 39 49
-- -- -- --
Total interest income 1,035 1,003 2,025 1,977
Interest expense:
Interest on savings deposits 379 405 763 812
Interest on borrowed funds 183 89 314 140
--- --- --- ---
Total interest expense 562 494 1,077 952
--- --- ----- ---
Net interest income 473 509 948 1,025
Provision for loan losses 141 7 144 20
Net interest income after provision -- -- -- --
for loan losses 332 502 804 1,005
Other income:
Service charges 15 15 33 32
Other 28 48 55 66
-- -- -- --
Total other income 43 63 88 98
Other expenses:
Compensation and employee benefits 218 212 436 415
Premises and occupancy costs 68 63 139 118
Federal insurance premiums 5 5 10 11
Loss on real estate 19 -- --
Data processing expense 32 28 64 48
Other operating expenses 122 108 233 202
--- --- --- ---
Total other expenses 464 416 901 794
Income (loss) before income taxes (89) 149 (9) 309
Provision for (benefit from) income taxes (42) 53 (6) 114
--- --- --- ---
Net income (loss) $(47) $96 $(3) $195
=== === === ====
Basic earnings (loss) per share $(.09) $ .16 $(.01) $ .33
Diluted earnings (loss) per share $(.09) $ .16 $(.01) $ .33
Dividend declared per share $ .075 $ .075 $ .15 $ .145
</TABLE>
See accompanying notes to unaudited consolidated financial statements
4
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Pennwood Bancorp, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
(Dollars in Thousands)
<TABLE>
<CAPTION>
Six Months Ended
December 31,
---------------------------
Operating Activities: 1999 1998
--------------------- ---- ----
<S> <C> <C>
Net Income (3) $195
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation expense 25 19
Provision for loan losses 144 20
(Increase) decrease in accrued interest receivable (33) 40
(Increase) decrease in prepaid expenses and other assets (134) (124)
Increase in accrued interest payable 107 109
Other, net 87 14
---- --
Total adjustments 196 78
--- --
Net cash provided by operating activities 193 273
Investing Activities:
---------------------
Purchases of premises and equipment (884) (220)
Purchases of investment and mortgage-backed securities
available-for-sale (1,162) (1,085)
Purchases of investment and mortgage-backed securities
held-to-maturity 0 (750)
Proceeds from maturities and principal repayments of
investment and mortgage-backed securities held-to-maturity 2 1
Proceeds from maturities and principal repayments of
investment and mortgage-backed securities available-
for-sale 851 6,101
Net (increase) in loans receivable (3,657) (7,541)
(Increase) in FHLB Stock (350) (16)
Other, net (93) (28)
---- ----
Net cash (used) by investing activities (5,293) (3,538)
Financing Activities:
---------------------
Net (decrease) increase in passbook, club, money market and
NOW accounts (33) 17
Net (decrease) increase in certificates of deposit accounts (1,054) 184
Net (decrease) in advances from borrowers for
taxes and insurance (92) (59)
Repayment of ESOP loan (21) (18)
Purchase of Treasury Stock (45) (824)
Increase of FHLB Advances 7,000 5,000
Dividends paid (84) (96)
Other 14 28
-- --
Net cash provided by financing activities 5,685 4,232
Net increase in cash and cash equivalents 585 967
Cash and cash equivalents, beginning of period 2,721 2,553
----- -----
Cash and cash equivalents, end of period $3,306 $3,520
====== ======
</TABLE>
See accompanying notes to unaudited consolidated financial statements
5
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Pennwood Bancorp, Inc.
Consolidated Statements of Cash Flows, Continued
(Unaudited)
(Dollars in Thousands)
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<CAPTION>
Six Months Ended
December 31,
---------------------------
1999 1998
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<S> <C> <C>
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest on savings deposits $714 $729
==== ====
Income taxes $58 $7
=== ==
</TABLE>
See accompanying notes to unaudited consolidated financial statements
6
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PENNWOOD BANCORP, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in
accordance with instructions to Form 10-QSB. Accordingly, they do not include
all of the information and footnotes required by generally accepted accounting
principles for complex financial statements. However, such information
presented reflects all adjustments (consisting solely of normal recurring
adjustments) which are, in the opinion of management, necessary for a fair
presentation of the financial statements.
The results of operations for the three months and six months ended
December 31, 1999 are not necessarily indicative of the results to be expected
for the year ending June 30, 2000. The unaudited consolidated financial
statements and notes thereto should be read in conjunction with the audited
financial statements and notes thereto contained in Pennwood Bancorp, Inc.'s
Form 10-KSB for the year ended June 30, 1999.
NOTE 2 - PRINCIPLES OF CONSOLIDATION
The accompanying unaudited financial statements of Pennwood Bancorp, Inc. (the
"Company") include the accounts of the Company and its wholly-owned
subsidiary, Pennwood Savings Bank (the "Savings Bank"). All significant
inter-company transactions have been eliminated in consolidation.
NOTE 3 - CONVERSION TO STOCK FORM OF OWNERSHIP
The Savings Bank converted from a Pennsylvania mutual savings bank to a
Pennsylvania stock savings bank on July 12, 1996. In connection with the
conversion, the Savings Bank issued 610,128 shares of common stock. On January
27, 1997, the Savings Bank completed its reorganization into the holding
company form of ownership. The resulting holding company is Pennwood Bancorp,
Inc. , a Pennsylvania corporation.
7
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NOTE 4 - EARNINGS PER SHARE
The following weighted average shares and share equivalents are used to
calculate Basic and Diluted EPS for the three months and six months ended
December 31, 1999 and 1998:
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
DEC. 31, 1999 DEC.31, 1998 DEC. 31, 1999 DEC. 31, 1998
------------- ------------ ------------- --------------
<S> <C> <C> <C> <C>
Weighted average number of shares
outstanding used to calculate Basic EPS 511,732 582,480 512,827 594,887
Dilutive securities...................... 0 1,415 0 3,842
------- ------- ------ ------
Weighted average number of shares and share
equivalents outstanding used to calculate
Diluted EPS............................ 511,732 583,895 512,827 598,729
</TABLE>
NOTE 5 - PAYMENT OF DIVIDENDS
On December 15, 1999, the Company declared a quarterly dividend of $.075 per
share, payable on January 15, 2000, to shareholders of record of December 31,
1999.
NOTE 6 - RECENT ACCOUNTING PRONOUNCEMENTS
In June 1998, the Financial Accounting Standard Board (FASB) issued Statement
of Financial Accounting Standard ("SFAS") No. 133, "Accounting for Derivative
Instruments and Hedging Liabilities." This statement requires that all
derivatives be recognized as either assets or liabilities in the balance sheet
and that those instruments be measured at fair value. The accounting for
changes in the fair value of a derivative (that is, gains or losses) depends
on the intended use of the derivative and resulting designation. This
statement was effective for fiscal years beginning after June 15, 1999,
although earlier adoption is permitted. In June 1999, the FASB issued SFAS No.
137 "Accounting for Derivative Instruments and Hedging Activities -
8
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Deferral of the Effective date of FASB Statement No. 133 - and Amendment of
FASB Statement No. 133,"which delays the adoption of SFAS No. 133 until
June 15, 2000. Management does not anticipate that there will be any material
impact to the Company's financial statements.
NOTE 7 - SUBSEQUENT EVENT
On February 18, 2000, the Company announced entering into the Agreement and Plan
of Merger (the "Agreement") with Fidelity Bancorp, Inc. ("Fidelity") pursuant to
which each share of common stock of the Company issued and outstanding at the
closing of the transaction will be acquired for cash consideration equal to
$13.10 per share (the "Merger Consideration"). In addition, the holders of
options to acquire Company common stock will either, at their election, receive
cash in an amount equal to the Merger Consideration less the applicable exercise
price per share or convert their options to options to acquire shares of
Fidelity common stock under similar terms and conditions. The acquisition, which
will be accounted for as a purchase, is subject to various customary closing
conditions including the receipt of all required shareholder and regulatory
approvals. The Company will file a Current Report on Form 8-K reporting the
execution of the Agreement, which Form 8-K will include as an exhibit thereto
the Agreement.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
GENERAL
Pennwood Bancorp, Inc. (the "Company") is the holding company for
Pennwood Savings Bank (the "Savings Bank"). The operating results of the
Savings Bank depend primarily upon its net interest income, which is
determined by the difference between interest income on interest-earning
assets, which consist principally of loans, investment securities and other
investments, and interest expense on interest-bearing liabilities, which
consist principally of deposits and borrowed money. The Savings Bank's net
income also is affected by its provision for loan losses, as well as the level
of its other income, including loan fees and service charges and miscellaneous
items, and its other expenses, including compensation and other employee
benefits, premises and occupancy costs, federal deposit insurance premiums,
data processing expense, net loss on real estate owned and other miscellaneous
expenses, and income taxes.
CHANGES IN FINANCIAL CONDITION
The Company's total assets increased by $5.7 million or 11.0% from
$51.7 million at June 30, 1999 to $57.4 million at December 31, 1999. During the
six months ended December 31, 1999, the Company's investment and mortgage-backed
securities (classified as available for sale) increased by $187,000 or 5.3% from
$3.5 million at June 30, 1999 to $3.7 million at December 31, 1999, money market
investments (consisting of interest-bearing deposits with other financial
institutions) increased by $284,000 or 17.0% and cash and amounts due from
depository institutions increased by $301,000 or 28.6% while investment and
mortgage-backed securities (classified as held-to-maturity) decreased by $2,000
or 1.0% at the six months ended December 31, 1999. The Company's net loans
receivable increased $3.5 million or 8.2% from $42.7 million at June 30, 1999 to
$46.2 million at December 31, 1999. This was due to an increase in loans on
single family homes, funded by the proceeds of FHLB advances. During the six
month period, the Company's premises and equipment increased by $859,000 or
64.1%. This was due to the expansion of the Company's main office, which is
scheduled for completion by the end of the fiscal year. During the six month
period, the Company's total liabilities increased by $5.8 million or 12.9% from
$45.1 million at June 30, 1999 to $50.9 million at December 31, 1999. Borrowed
funds increased by $7.0 million or 83.1%, which was offset by a decrease in
deposit liabilities of $1.1 million or 3.1%. Shareholders equity decreased by
$154,000 or 2.3% during the six months ended December 31, 1999, as a result of
the purchase of Treasury Stock of $45,000, the market value adjustment on
investments classified as available for sale of $84,000, the year to date net
loss of $3,000 and dividends declared of $84,000 which were offset by $61,000 in
employee benefit plan shares earned.
9
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RESULTS OF OPERATIONS
NET INCOME (LOSS). The Company reported net losses of $47,000 and
$3,000 for the three months and six months ended December 31, 1999,
respectively, compared to net income of $96,000 and $195,000 during the three
months and six months ended December 31, 1998. The $143,000 decrease in net
income during the three month period ended December 31, 1999 was the result of a
$36,000 decrease in net interest income, a $48,000 increase in non interest
expenses, a $20,000 decrease in non interest income, and a $134,000 increase in
loan loss provisions which were offset by a $95,000 decrease in income taxes.
The $198,000 decrease in net income during the six month period over the prior
year was the result of a $ 77,000 decrease in net interest income, a $107,000
increase in non interest expenses, a $10,000 decrease in non interest income,
and a $124,000 increase in loan loss provisions which were offset by a $120,000
decrease in income taxes.
For the three months and six months ended December 31, 1999, the
Company's net interest margin decreased by 61 basis points and 63 basis
points, respectively, to 3.66% and 3.74%, from 4.27% and 4.37% for the three
months and six months ended December 31, 1998. The average yield earned on the
Company's interest-earning assets decreased by 41 basis points and 45 basis
points, respectively, for the three and six month periods ended December 31,
1999 over the same periods ended December 31, 1998 which was offset by a 3
basis point and 2 basis point decrease in the average rate paid on the
Company's interest-bearing liabilities for the same periods ended December 31,
1999 and December 31, 1998 respectively.
NET INTEREST INCOME. Net interest income decreased by $36,000 or 7.1%
and $77,000 or 7.5% during the three months and six months ended December 31,
1999, respectively, as compared to the same periods ended December 31, 1998.
This decrease was primarily attributable to a 41 basis point and 45 basis point
decrease in the average yield earned on interest earning assets for the three
months and six months ended December 31, 1999, respectively, over the prior 1998
periods while the average rate paid on interest bearing liabilities remained
relatively unchanged.
During the three months and six months ended December 31, 1999, total
interest income increased by $32,000 or 3.2% and $48,000 or 2.4%, respectively,
as compared to the same periods in 1998. The increases during the three and six
months ended December 31, 1999 as compared to the corresponding periods in 1998
were primarily due to a $37,000 or 4.2% and $120,000 or 7.1% increase in
interest earned on loans and a $7,000 or 140.0% and $10,000 or 100.0% increase
in interest earned on federal funds and other investments, respectively, which
were offset by a $1,000 or 1.6% and a $54,000 or 31.2% decrease in interest
earned on investment securities, an $8,000 or 29.6% and an $18,000 or 31.6%
decrease in interest earned on mortgage backed securities and a $3,000 or 12.5%
and a $10,000 or 20.4% decrease in interest earned on money market investments,
respectively. The increase in interest earned on loans was due primarily to a
$4.6 million or 11.0% and $5.9 million or 15.2% increase in the average balance
of loans outstanding, during the three and six months ending December 31, 1999
as compared to the same 1998 periods, which was partially offset by a 55 basis
point and a 61 basis point decrease in the average yield earned thereon,
respectively. During the three and six months ended December 31, 1999, the
decrease in interest earned on investment securities was due primarily to a
$176,000 or 4.1% and
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a $1.4 million or 24.6% decrease in the average balance of investment securities
and a 54 basis point and a 60 basis point decrease in the average yield earned
thereon, respectively, as compared to the same periods in 1998. The decrease in
interest earned on money market investments during the three and six months
ended December 31, 1999 was primarily due to a $830,000 or 38.2% and a $879,000
or 40.0% decrease in the average balance of money market investments,
respectively, as compared to the same periods in 1998. The increase in interest
earned on federal funds sold and other investments during the three and six
months ended December 31, 1999 as compared to the corresponding periods in 1998
was due primarily to a $450,000 or 150.0% and a $322,000 or 109.2% increase in
the average balance of federal funds and other investments. The decrease in the
average yield earned on the Company's investment securities during the three and
six months ended December 31, 1999 as compared to the corresponding periods in
1998 resulted from calls and maturities of higher yielding U.S. Government and
agency obligations.
During the three and six months ended December 31, 1999, total interest
expense increased by $68,000 or 13.8% and $125,000 or 13.1%, respectively, as
compared to the same period in 1998, due to a $7.0 million or 109.4% and a
$6.3 million or 116.7% increase in the average balance of borrowed money which
was offset by a $888,000 or 2.5% and a $678,000 or 1.9% decrease in the
average balance of savings deposits as compared to the same 1998 periods.
PROVISION FOR LOAN LOSSES. The Company establishes provisions for
losses on loans, which are charged to operations, in order to maintain the
allowance for loan losses at a level which is deemed to be appropriate based
upon an assessment of prior loss experience, the volume and type of lending
presently being conducted by the Company, past due loans, economic conditions in
the Company's market area and other factors related to the collectibility of the
Company's loan portfolio. During the three and six months ended December 31,
1999, the Company established provisions for loan losses of $141,000 and
$144,000, respectively, compared to $7,000 and $20,000 for the same 1998
periods. Provisions made during the three months ended December 31, 1999
primarily reflect charge-off and delinquency trends of the consumer loan
portfolio.
OTHER INCOME. Total other income decreased by $20,000 or 31.7% and
$10,000 or 10.2% during the three and six months ended December 31, 1999,
respectively, as compared to the same 1998 periods. This was primarily due to a
decrease of $20,000 or 41.7% and $11,000 or 16.7% in other miscellaneous
income (which consists primarily of rental income earned on real estate owned,
late charges, service charges and other miscellaneous fees).
OTHER EXPENSES. Total other expenses increased by $48,000 or 11.5% and
$107,000 or 13.5% during the three and six months ended December 31, 1999,
respectively, as compared to the same 1998 periods. During the three months
ended December 31, 1999 as compared to the same period ending December 31,
1998, there was a $6,000 or 2.8% increase in compensation and employee
benefits, a $14,000 or 13.0% increase in other miscellaneous expenses, a
$4,000 or 14.3% increase in data processing expenses, a $19,000 increase
in loss on real estate and a $5,000 or 7.9% increase in office occupancy
expenses. During the six months ended December 31, 1999 as compared to the same
period ending December 31, 1998, there was a $21,000 or 5.1% increase in
compensation and employee benefits, a $31,000 or 15.3% increase in other
miscellaneous expenses, a $16,000 or 33.3% increase in data processing expenses,
a $19,000 increase in loss on real estate and a $21,000 or 17.8% increase
in office occupancy expenses.
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PROVISION FOR INCOME TAXES. The Company incurred a decrease of $95,000
and $120,000 in income tax expense for the three and six months ended
December 31, 1999, as compared to the same 1998 periods, due primarily to the
losses before income taxes for the three and six months ended December 31, 1999.
LIQUIDITY AND CAPITAL RESOURCES
The Company's primary sources of funds are deposits, repayments,
prepayments and maturities of outstanding loans, maturities of investment
securities and other short-term investments, and funds provided from operations.
While scheduled loan repayments and maturing investment securities and
short-term investments are relatively predictable sources of funds, deposit
flows and loan prepayments are greatly influenced by the movement of interest
rates, economic conditions and competition. The Company manages the pricing of
its deposits to maintain a deposit balance deemed appropriate and desirable. In
addition, the Company invests in short-term investment securities and other
interest-earning assets which provide liquidity to meet lending requirements.
Although the Company has been able to generate enough cash through the retail
deposit market, its traditional funding source, the Company may, to the extent
deemed necessary, utilize other borrowing sources, consisting primarily of
advances from the Federal Home Loan Bank ("FHLB") of Pittsburgh. At December
31, 1999, the Company had $15.0 million of outstanding advances from the FHLB of
Pittsburgh.
Liquidity management is both a daily and long-term function. Excess
liquidity is generally invested in short-term investments such as cash and
cash equivalents, including money market investments and federal funds sold,
and U.S. Government and agency obligation. On a longer-term basis, the Company
invests in various lending products and investment securities. The Company
uses its sources of funds primarily to meet its ongoing commitments to pay
maturing savings certificates and savings withdrawals, fund loan commitments
and maintain an investment securities portfolio. At December 31, 1999, the
total commitments outstanding (excluding undisbursed portions of loans in
process) amounted to $2.2 million in mortgage loans and $514,000 in unused
lines of credit. At the same date, the unadvanced portion of loans in process
approximated $2.7 million. Certificates of deposit scheduled to mature in
three months or less at December 31, 1999, totaled $4.4 million. Management of
the Company believes that the Company has adequate resources, including
principal payments and repayments of loans an maturing investments, to fund
all of its commitments to the extent required. Based upon its historical
run-off experience, management believes that a significant portion of maturing
deposits will remain with the Company.
As of December 31, 1999, the Company had regulatory capital in excess
of required amounts.
YEAR 2000 CONSIDERATIONS
As of the date of this filing, the Company has not experienced any
significant year 2000 problems relating to its internal or third party computer
systems. Nor has the Company experienced any problems regarding the ability of
commercial customers to meet their debt service obligations as a result of year
2000 issues. The Company will continue to monitor systems for problems,
however, the costs related to that process are not expected to be significant.
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PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Not applicable.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
Not applicable.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable.
ITEM 5. OTHER INFORMATION
See Note 7 of Notes to Unaudited Consolidated Financial Statements set
forth herein.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a) Exhibits
27 Financial Data Schedule
b) Reports on Form 8-K
None
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SIGNATURES
In accordance with the requirements of the Securities Exchange Act of
1934, the registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
PENNWOOD BANCORP, INC.
Date: February 11, 2000 By:/s/ Paul S. Pieffer
-------------------
Paul S. Pieffer, President and
Chief Executive Officer
Date: February 11, 2000 By:/s/ James W. Kihm
-----------------
James W. Kihm, Vice President and
Secretary
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-END> DEC-31-1999
<CASH> 1,355
<INT-BEARING-DEPOSITS> 1,951
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 205
<INVESTMENTS-CARRYING> 3,702
<INVESTMENTS-MARKET> 3,841
<LOANS> 46,250
<ALLOWANCE> (335)
<TOTAL-ASSETS> 57,378
<DEPOSITS> 34,442
<SHORT-TERM> 12,000
<LIABILITIES-OTHER> 1,110
<LONG-TERM> 3,373
0
0
<COMMON> 8
<OTHER-SE> 6,445
<TOTAL-LIABILITIES-AND-EQUITY> 57,378
<INTEREST-LOAN> 1,808
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<INTEREST-TOTAL> 2,025
<INTEREST-DEPOSIT> 763
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<INCOME-PRETAX> (9)
<INCOME-PRE-EXTRAORDINARY> (9)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3)
<EPS-BASIC> (.01)
<EPS-DILUTED> (.01)
<YIELD-ACTUAL> 7.98
<LOANS-NON> 236
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<RECOVERIES> 9
<ALLOWANCE-CLOSE> 335
<ALLOWANCE-DOMESTIC> 335
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
