UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(Mark One)
X Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
- ----- Exchange Act of 1934
For the quarterly period ended March 31, 2000
_____ Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from _____ to _____
Commission File Number: 0-23345
WYMAN PARK BANCORPORATION, INC.
-----------------------------------------------------------------
(Exact Name of Small Business Issuer as Specified in its Charter)
DELAWARE 52-2068893
- ------------------------------- ----------
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
11 WEST RIDGELY ROAD, LUTHERVILLE, MARYLAND 21093
-------------------------------------------------
(Address of Principal Executive Offices)
(410)-252-6450
--------------
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 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 ___
---
As of May 10, 2000, the issuer had 905,926 shares of Common Stock issued and
outstanding.
Transitional Small Business Disclosure Format (check one):
Yes___ No X
----
<PAGE>
CONTENTS
--------
PART I. FINANCIAL INFORMATION PAGE
--------------------- ----
Item I. Financial Statements
Consolidated Statements of Financial Condition at
March 31, 2000 and June 30, 1999.............................. 2
Consolidated Statements of Operations for the Three Month and Nine
Month Period ended March 31, 2000 and 1999.................... 3
Consolidated Statements of Cash Flows for the Nine Month
Periods Ended March 31, 2000 and 1999......................... 4
Notes to Consolidated Financial Statements.................... 5-7
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations......................................... 8-12
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.............................................................. 14
1
<PAGE>
Wyman Park Bancorporation, Inc. and Subsidiaries
Lutherville, Maryland
Consolidated Statements of Financial Condition
<TABLE>
<CAPTION>
March 31, June 30,
2000 1999
--------- --------
(Unaudited)
Assets
------
<S> <C> <C>
Cash and noninterest bearing deposits $ 239,301 $ 346,756
Interest bearing deposits in other banks 996,289 7,068,548
Federal funds sold 809,737 4,685,426
------------ ------------
Total cash and cash equivalents 2,045,327 12,100,730
Loans receivable, net 62,954,083 56,839,675
Mortgage-backed securities held to maturity
at amortized cost, fair value of $185,782 (3/00)
and $217,971 (6/99) 182,367 216,663
Federal Home Loan Bank of Atlanta stock, at cost 508,500 508,500
Accrued interest receivable 310,640 292,175
Ground rents owned, at cost 122,600 122,600
Property and equipment, net 122,661 155,281
Federal and state income taxes receivable 29,020 13,688
Deferred tax asset 189,020 189,020
Prepaid expenses and other assets 65,069 92,056
------------ ------------
Total Assets $ 66,529,287 $ 70,530,388
------------ ------------
Liabilities & Stockholders' Equity
----------------------------------
Liabilities:
Demand deposits $ 5,409,621 $ 5,803,776
Money market and NOW accounts 9,855,993 12,169,347
Time deposits 39,261,659 40,035,036
------------ ------------
Total deposits 54,527,273 58,008,159
Checks outstanding in excess of bank balance 33,352 --
Borrowings 2,000,000 2,650,000
Advance payments by borrowers for taxes,
insurance and ground rents 999,680 1,278,634
Accrued interest payable on savings deposits 18,410 20,148
Accrued interest on borrowings 8,140 5,038
Federal and state income taxes payable 3,000 727
Accrued expenses and other liabilities 516,304 538,375
------------ ------------
Total liabilities 58,106,159 62,501,081
Stockholders' Equity
- --------------------
Common stock, par value $.0l per share; authorized
2,000,000 shares; issued 1,011,713 shares 10,117 10,117
Additional paid-in capital 4,035,652 3,959,985
Contra equity - Employee Stock Ownership Plan (ESOP) (632,420) (632,420)
Retained earnings, substantially restricted 6,209,543 5,891,389
Treasury Stock; 105,787 shares, at cost at
March 31, 2000 (1,199,764) (1,199,764)
------------ ------------
Total stockholders' equity 8,423,128 8,029,307
------------ ------------
Total liabilities and stockholders' equity $ 66,529,287 $ 70,530,388
------------ ------------
</TABLE>
See accompanying notes to financial statements.
2
<PAGE>
Wyman Park Bancorporation, Inc. and Subsidiaries
Lutherville, Maryland
Consolidated Statements of Operation
(Unaudited)
<TABLE>
<CAPTION>
For the Nine Months For the Three Months
Ended March 31, Ended March 31,
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Interest and fees on loans receivable $3,320,078 $3,470,934 $1,152,505 $1,112,517
Interest on mortgage-backed securities 9,467 13,271 2,943 4,115
Interest on other investments 203,101 385,026 47,459 146,239
---------- ---------- ---------- ----------
Total interest income $3,532,646 $3,869,231 $1,202,907 $1,262,871
---------- ---------- ---------- ----------
Interest on savings deposits $1,903,452 $2,015,185 $ 626,304 $ 660,970
Interest on borrowed money 21,437 -- 18,353 --
Interest on escrow deposits 2,073 2,467 930 1,093
---------- ---------- ---------- ----------
Total interest expense $1,926,962 $2,017,652 $ 645,587 $ 662,063
Net interest income before provision
for loan losses 1,605,684 1,851,579 557,320 600,808
Provision for loan losses 2,400 2,550 2,400 --
---------- ---------- ---------- ----------
Net interest income $1,603,284 $1,849,029 $ 554,920 $ 600,808
---------- ---------- ---------- ----------
Other Income
- ------------
Loan fees and service charges $ 66,693 $ 50,767 $ 21,504 $ 17,285
Gain on sales of loans receivable -- 47,174 -- 9,154
Other 9,337 21,546 2,887 5,610
---------- ---------- ---------- ----------
Total other income $ 76,030 $ 119,487 $ 24,391 $ 32,049
---------- ---------- ---------- ----------
Noninterest Expenses
- --------------------
Salaries and employee benefits $ 655,674 $ 629,438 $ 220,636 $ 240,742
Occupancy costs 69,688 71,989 23,763 24,063
Professional services 67,025 48,875 17,658 13,260
Federal deposit insurance premiums 20,119 24,958 2,994 8,630
Furniture and fixtures depreciation and
maintenance 39,749 38,587 13,396 13,474
Data processing 62,141 58,287 18,913 21,378
Advertising 53,018 33,470 22,569 10,671
Franchise and other taxes 37,428 41,554 16,195 18,573
Other 152,297 163,099 55,526 55,665
---------- ---------- ---------- ----------
Total noninterest expenses $1,157,139 $1,110,257 $ 391,650 $ 406,456
Income before tax provision 522,175 858,259 187,661 226,401
Provision for income taxes 204,021 322,176 73,000 74,456
---------- ---------- ---------- ----------
Net Income $ 318,154 $ 536,083 $ 114,661 $ 151,945
---------- ---------- ---------- ----------
Basic net income per share $0.41 $0.59 $0.15 $0.17
Diluted net income per share $0.39 $0.58 $0.15 $0.17
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
Wyman Park Bancorporation, Inc.
and Subsidiaries
Lutherville, Maryland
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended March 31,
---------------------------
2000 1999
---- ----
Cash Flows from operating activities
- ------------------------------------
<S> <C> <C>
Net income $ 318,154 $ 536,083
Adjustments to reconcile net income to net
Cash provided by operating activities:
Depreciation and amortization 38,637 41,086
Non-cash compensation under stock based benefit plan 75,667 75,667
Provision for loan losses 2,400 2,550
Amortization of loan fees (54,017) (66,187)
Gain on sales of loans receivable -- (47,174)
Loans originated for sale -- (4,042,000)
Proceeds from loans originated for sale -- 4,089,174
(Increase) decrease in accrued interest receivable (18,465) 46,239
(Increase) decrease in prepaid expenses and other assets 26,987 (16,186)
Increase (decrease) in accrued expenses and other liabilities (22,071) 40,671
(Increase) decrease in federal and state income taxes receivable (15,332) 130
Increase (decrease) in federal and state income taxes payable 2,273 (286,303)
Increase (decrease)in accrued interest payable on
savings deposits (1,738) 2,537
Increase in accrued interest payable on borrowings 3,102 --
------------ ------------
Net cash provided by operating activities 355,597 376,287
Cash flows from investing activities
- ------------------------------------
Proceeds from sale of ground rents -- 3,620
Net (increase) decrease in loans receivable (5,062,791) 3,033,549
Purchase of loan participations (1,000,000) (235,506)
Mortgage-backed securities principal repayments 34,296 53,821
Purchases of property and equipment (6,017) (12,268)
------------ ------------
Net cash used in investing activities (6,034,512) 2,843,216
Cash flows from financing activities
- ------------------------------------
Net increase (decrease) in savings deposits (3,480,886) 3,785,479
Net increase (decrease) in checks outstanding in excess of
bank balance 33,352 (137,246)
Decrease in borrowings (650,000) --
Decrease in advance payments by borrowers
for taxes, insurance and ground rents (278,954) (328,841)
Repurchase of common stock -- (1,584,928)
------------ ------------
Net cash provided by (used in) financing activities (4,376,488) 1,734,464
Net increase (decrease) in cash and cash equivalents $(10,055,403) $ 4,953,967
Cash and cash equivalents at beginning of period 12,100,730 6,848,123
------------ ------------
Cash and cash equivalents at end of period $ 2,045,327 $ 11,802,090
------------ ------------
Supplemental information
- ------------------------
Interest paid on savings deposits and borrowed funds $ 1,926,962 $ 2,023,465
Income taxes paid $ 222,376 $ 608,620
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
WYMAN PARK BANCORPORATION, INC. AND SUBSIDIARIES
LUTHERVILLE, MARYLAND
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1: WYMAN PARK BANCORPORATION, INC.
Wyman Park Bancorporation, Inc. (the "Company") is the holding company of Wyman
Park Federal Savings & Loan Association ("Association"), which converted from
mutual to stock form ("Stock Conversion") and became the wholly owned subsidiary
of the Company on January 5, 1998. All references to the Company prior to
January 5, 1998, except where otherwise indicated are to the Association. The
Company's common stock began trading on the OTC Electronic Bulletin Board on
January 7, 1998 under the symbol "WPBC".
The Association is regulated by the Office of Thrift Supervision ("OTS"). The
primary business of the Association is to attract deposits from individual and
corporate customers and to originate residential and commercial mortgage loans
and consumer loans. The Association competes with other financial and mortgage
institutions in attracting and retaining deposits and originating loans. The
Association conducts operations through its main office located at 11 West
Ridgely Road, Lutherville, Maryland 21093 and one branch office located at 7963
Baltimore-Annapolis Boulevard, Glen Burnie, Maryland 21060.
NOTE 2: BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have been prepared
in accordance with instructions for Form 10-QSB and therefore, do not include
all disclosures necessary for a complete presentation of the statements of
condition, statements of operations and statements of cash flows in conformity
with generally accepted accounting principles. However, all adjustments which,
in the opinion of management, are necessary for the fair presentation of the
interim financial statements have been included. Such adjustments were of a
normal recurring nature. The results of operations for the nine months ended
March 31, 2000 are not necessarily indicative of the results that may be
expected for the entire year.
NOTE 3: CASH AND CASH EQUIVALENTS
For cash, non-interest bearing deposits, variable rate interest-bearing deposits
in other banks and federal funds sold, the carrying amount is a reasonable
estimate of fair value.
5
<PAGE>
NOTE 4: EARNINGS PER SHARE
Basic earnings per share is computed by dividing net income by the weighted
average number of common shares outstanding for the appropriate period. Unearned
Employee Stock Ownership Plan (ESOP) shares are not included in outstanding
shares. Diluted earnings per share is computed by dividing net income by the
weighted average shares outstanding as adjusted for the dilutive effect of stock
options and unvested stock awards based on the "treasury stock" method.
Information relating to the calculations of net income per share of common stock
is summarized for the three months and nine months ended March 31, 2000 and 1999
as follows:
Three Months Ended Nine Months Ended
March 31, March 31,
2000 1999 2000 1999
------------------- -------------------
Net income $114,661 $151,945 $318,154 $536,083
Weighted average shares
Outstanding basic EPS 761,519 893,892 776,103 913,839
Dilutive items
Stock options 22,259 21,706 30,012 7,130
Unvested stock awards -- 551 1,359 181
Adjusted weighted average shares
Outstanding used for diluted EPS 783,778 916,149 807,474 921,150
NOTE 5: REGULATORY CAPITAL REQUIREMENTS
Under OTS regulations, the Association must maintain capital at least equal to
specified percentage of its assets. The Association's assets and capital for
these purposes are subject to OTS regulatory definition, and the percentage
levels vary depending on the capital levels being measured. The following table
presents the Association's capital position based on the March 31, 2000
financial statements.
<TABLE>
<CAPTION>
To Be Well
Capitalized Under
For Capital Prompt Corrective
Actual Adequacy Purposes Action Provisions
-------------------- -------------------- --------------------
Amount Ratio Amount Ratio Amount Ratio
------ ----- ------ ----- ------ -----
<S> <C> <C> <C> <C> <C> <C>
Total Capital (to
Risk Weighted
Assets) $7,519,359 19.6% $3,062,551 8.0% $3,828,188 10.0%
Tier I capital (to
Risk Weighted
Assets) 7,234,359 18.9% 1,531,275 4.0% 2,296,913 6.0%
Tier 1 Capital (to
Average Assets) 7,234,359 10.9% 2,661,288 4.0% 3,326,610 5.0%
</TABLE>
6
<PAGE>
NOTE 6: RECENT ACCOUNTING PRONOUNCEMENTS
FASB statement on Accounting for Derivative Instruments and Hedging Activities -
In June, 1998, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 133, as amended by SFAS
No. 137, which standardizes the accounting for derivative instruments including
certain derivative instruments embedded in other contracts, by requiring that an
entity recognize these items as assets or liabilities in the statement of
financial position and measure them at fair value. This Statement generally
provides for matching the timing of gain or loss recognition on the hedging
instrument with the recognition of the changes in the fair value of the hedged
asset or liability that are attributable to the hedged risk or the earnings
effect of the hedged forecasted transaction. The Statement, which is effective
for all fiscal quarters of all fiscal years beginning after June 15, 2000, is
not expected to materially affect the Company's financial position or its
results of operations.
7
<PAGE>
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.
FORWARD-LOOKING STATEMENTS
When used in this filing and in future filings by the Company with the
Securities and Exchange Commission, in the Company's press releases or other
public or shareholder communications, or in oral statements made with the
approval of an authorized executive officer, the words or phrases "would be,"
"will allow," "intends to," "will likely result," "are expected to," "will
continue," "is anticipated," "estimate," "project" or similar expressions are
intended to identify "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements are subject to
risks and uncertainties, including but not limited to changes in economic
conditions in the Company's market area, changes in policies by regulatory
agencies, fluctuations in interest rates, demand for loans in the Company's
market area and competition, all or some of which could cause actual results to
differ materially from historical earnings and those presently anticipated or
projected.
The Company wishes to caution readers not to place undue reliance on any such
forward-looking statements, which speak only as of the date made, and advises
readers that various factors, including regional and national economic
conditions, substantial changes in levels of market interest rates, credit and
other risks of lending and investment activities and competitive and regulatory
factors, could affect the Company's financial performance and could cause the
Company's actual results for future periods to differ materially from those
anticipated or projected.
The Company does not undertake, and specifically disclaims any obligations, to
update any forward-looking statements to reflect occurrences or unanticipated
events or circumstances after the date of such statements.
8
<PAGE>
COMPARISON OF FINANCIAL CONDITION AT MARCH 31, 2000 AND JUNE 30, 1999
The Company's assets decreased $4.0 million or 5.7% to $66.5 million at March
31, 2000 from $70.5 million at June 30, 1999. Cash and cash equivalents
decreased $10.1 million or 83.5% to $2.0 million at March 31, 2000 from $12.1
million at June 30, 1999, primarily as a result of the funding of an increase in
net loans receivables, less than $1.0 million decrease in borrowings and a
decrease in savings deposits due to a highly competitive market for local
deposits. Net loans receivable increased $6.2 million or 10.9% to $63.0 million
at March 31, 2000 from $56.8 million at June 30, 1999, as the Association
continued to originate adjustable rate and commercial loans for its own
portfolio and is not currently originating fixed rate loans for its portfolio or
for sale, due to current rising interest rate conditions. The $6.2 million
increase in net loans receivable was primarily the result of an increase of $4.9
million in residential real estate loans, an increase of $1.0 million in
commercial real estate loans and an increase of $300,000 in commercial non-real
estate loans. Savings deposits decreased $3.5 million or 6.0% to $54.5 million
at March 31, 2000 from $58.0 million at June 30, 1999. The Company's
stockholders' equity increased $400,000 or 5.0% to $8.4 million at March 31,
2000 from $8.0 million at June 30, 1999, as a result of net income of $318,000
for the nine months ended March 31, 2000, and a decrease in contra equity of
$76,000 for the annual distribution from the Company's Recognition and Retention
Plan (RRP) to its key employees.
COMPARISON OF OPERATING RESULTS FOR THE QUARTER AND NINE MONTHS ENDED MARCH 31,
2000 AND MARCH 31, 1999
Net Income
- ----------
The Company reported net income of $115,000 for the quarter ended March 31, 2000
compared to $152,000 for the quarter ended March 31, 1999. The $37,000 decline
in net income was primarily due to a decrease in net interest income of $44,000,
and a decrease in other income of $8,000, partially offset by a decrease in
noninterest expense of $14,000.
The Company's net income for the nine months ended March 31, 2000 was $318,000
compared to $536,000 for the nine months ended March 31, 1999. The $218,000
decrease in net income was primarily due to a decrease in net interest income of
$246,000, a decrease in other income of $43,000 and an increase in noninterest
expense of $47,000, offset by a decrease in income tax expense of $118,000.
Interest Income
- ---------------
Total interest income decreased by $60,000 or 4.8% to $1,203,000 for the quarter
ended March 31, 2000 from $1,263,000 for the quarter ended March 31, 1999. The
decrease in total interest income for the comparable three months periods was
due primarily to a decrease of $6.4 million in the average balance of
interest-earning assets to $65.7 million from $72.1 million, partially offset by
an increase of 31 basis points in the average yield on interest-earning assets
to 7.32% from 7.01%.
9
<PAGE>
Total interest income decreased by $336,000 or 8.7% to $3,533,000 for the nine
months ended March 31, 2000 from $3,869,000 for the nine months ended March 31,
1999. The decrease in total interest income for the comparable nine months
periods was due to a decrease of $6.0 million in the average balance of
interest-earning assets to $65.3 million from $71.3 million.
The decrease in the average balance of interest-earning assets was due primarily
to a decrease in federal funds sold, as a result of the use of cash to fund the
Company's return of capital distribution in June, 1999 and a decline in savings
deposits.
Interest Expense
- ----------------
Total interest expense decreased by $16,000 or 2.4% to $646,000 for the quarter
ended March 31, 2000 from $662,000 for the quarter ended March 31, 1999. The
decrease in total interest expense for the comparable three months periods was
due primarily to a decrease of $1.0 million in the average balance of
interest-bearing liabilities to $56.7 million from $57.7 million.
Total interest expense decreased by $91,000 or 4.5% to $1,927,000 for the nine
months ended March 31, 2000 from $2,018,000 for the nine months ended March 31,
1999. The decrease in total interest expense for the comparable nine months
periods was due to a decrease of 18 basis points in the average yield on
interest bearing liabilities to 4.55% from 4.73% accompanied by a decrease of
$600,000 in the average balance of interest bearing liabilities to $56.3 million
from $56.9 million.
The decrease in the average balance of interest-bearing liabilities was due to a
decrease in average savings deposits for the three and nine months comparable
periods.
Net Interest Income
- -------------------
The Company's net interest income decreased by $44,000 or 7.3% to $557,000 for
the quarter ended March 31, 2000 from $601,000 for the quarter ended March 31,
1999. The decrease in net interest income was primarily due to a decrease in the
ratio of average interest-earning assets to average interest-bearing liabilities
to 116.0% from 124.9%, as the Company used federal funds at the end of fiscal
year 1999 to fund the return of capital distribution. The Company's net yield on
interest-earning assets increased 6 basis points to 3.40% from 3.34%.
The Company's net interest income decreased by $246,000 or 13.3% to $1,606,000
for the nine months ended March 31, 2000 from $1,852,000 for the nine months
ended March 31, 1999. The decrease in net interest income was primarily due to a
decrease in the ratio of average interest-earning assets to average
interest-bearing liabilities to 116.0% from 125.3%. The Company's net yield on
interest-earning assets decreased by 18 basis points to 3.28% from 3.46%.
10
<PAGE>
Provision For Loan Losses
- -------------------------
Management monitors its allowance for loan losses and makes additions to the
allowance, through the provision for loan losses, as economic conditions and
other factors dictate. Among the other factors considered by management are loan
volume, type of collateral and prior loan loss experience. During the nine
months ended March 31, 2000, the Company recorded a provision for loan losses of
$2,400 compared to $2,550 for the nine months ended March 31,1999. The Company's
nonperforming loans as a percentage of loans receivable was 0.03% and 0.00% at
March 31, 2000, and June 30, 1999, respectively, all consisting of single-family
residential mortgage loans.
Noninterest Income
- ------------------
Total noninterest income decreased by $8,000 or 25.0% to $24,000 for the quarter
ended March 31, 2000 from $32,000 for the quarter ended March 31, 1999. The
decrease in noninterest income was due primarily to a decrease of $9,000 in gain
on sales of loans receivable to $0 for the quarter ended March 31, 2000 from
$9,000 for the quarter ended March 31, 1999.
Total noninterest income decreased by $43,000 or 36.1% to $76,000 for the nine
months ended March 31, 2000 from $119,000 for the nine months ended March 31,
1999. The decrease in noninterest income was due primarily to a decrease of
$47,000 in gain on sales of loans receivable to $0 for the nine months ended
March 31, 2000 from $47,000 for the nine months ended March 31, 1999.
Noninterest Expenses
- --------------------
Total noninterest expenses decreased by $14,000 or 3.4% to $392,000 for the
quarter ended March 31, 2000 from $406,000 for the quarter ended March 31,1999.
The decrease in noninterest expenses was primarily due to a decrease in salaries
and employee benefits expense of $20,000 or 8.3% to $221,000 for the quarter
ended March 31, 2000 from $241,000 for the quarter ended March 31, 1999, and a
decrease in federal deposit insurance premiums of $6,000 or 66.7% to $3,000 for
the quarter ended March 31, 2000 from $9,000 for the quarter ended March 31,
1999, partially offset by an increase in advertising expense of $12,000 or
109.1% to $23,000 for the quarter ended March 31, 2000 from $11,000 for the
quarter ended March 31, 1999. The decrease in salaries and employee benefits
expense was due to a temporary reduction in staff during the quarter. The
decrease in federal deposit insurance premiums was a scheduled reduction due to
the recapitalization of the insurance fund and the increase in advertising
expense was due to a more aggressive advertising campaign.
Total noninterest expenses increased by $47,000 or 4.2% to $1,157,000 for the
nine months ended March 31, 2000 from $1,110,000 for the nine months ended March
31, 1999.
11
<PAGE>
The increase in noninterest expenses was primarily due to an increase in
salaries and employee benefits expense of $27,000 or 4.3% to $656,000 for the
nine months ended March 31, 2000 from $629,000 for the nine months ended March
31, 1999. Also, advertising expense increased $20,000 or 60.6% to $53,000 for
the nine months ended March 31, 2000 from $33,000 for the nine months ended
March 31, 1999, as a result of the more aggressive advertising campaign. The
increase in salaries and employee benefits expense was primarily due to an
expansion of staff.
Liquidity and Capital Resources
- -------------------------------
Liquidity management for the Company is both an ongoing and long-term function
of the Company's asset/liability management strategy. Excess funds, when
applicable, generally are invested in overnight deposits at a correspondent bank
and at the Federal Home Loan Bank (FHLB) of Atlanta. Currently when the Company
requires funds, beyond its ability to generate deposits, additional sources of
funds are available, as advances or borrowings, through the FHLB of Atlanta. The
Company has the ability to pledge its FHLB of Atlanta stock or certain other
assets as collateral for up to $8 million in advances. The Company's most liquid
assets are cash and cash equivalents, which include short-term investments. The
levels of these assets are dependent on the Company's operating, financing and
investing activities during any given period. At March 31, 2000, the Company's
cash on hand, interest bearing deposits, Federal funds sold and short-term
investments totaled $2.0 million. Management and the Board of Directors believe
that the Company's liquidity is adequate, including its ability to secure
advances from the FHLB of Atlanta, to satisfy its loan commitments of
approximately $1.5 million as of March 31, 2000.
The Company's principal sources of funds are deposits, loan repayments and
prepayments, and other funds provided by operations. Certificates of deposit
which are scheduled to mature in less than one year at March 31, 2000 totaled
$21.1 million. Historically, a high percentage of maturing deposits have
remained with the Company. While scheduled loan repayments are relatively
predictable, deposit flows and early loan prepayments are more influenced by
interest rates, general economic conditions, and competition. The Association
maintains investments in liquid assets based upon management's assessment of (1)
need for funds, (2) expected deposit flows, (3) yields available on short-term
liquid assets and (4) objectives of the asset/liability management program.
The Company's primary uses of cash in investing activities during the nine
months ended March 31, 2000 were a net increase of $5.1 million in loans
receivable, in addition to the purchase of loan participations of $1.0 million.
The Company's primary uses of cash in financing activities during the nine
months ended March 31, 2000 consisted of a net decrease of $650,000 in
borrowings, a net decrease of $3.5 million in savings deposits, and a decrease
of $300,000 in advance payments by borrowers for taxes, insurance and ground
rents.
12
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY-HOLDERS
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) The following exhibit is filed as part of this Form 10QSB:
Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8-K
None
13
<PAGE>
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.
WYMAN PARK BANCORPORATION, INC.
Registrant
Date: May 10, 2000 /s/ Ernest A. Moretti
------------------------------------
Ernest A. Moretti
President and Chief Executive Officer
(Principal Executive Officer)
Date: May 10, 2000 /s/ Ronald W. Robinson
-------------------------------------
Ronald W. Robinson
Treasurer
(Principal Financial and Accounting Officer)
14
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM WYMAN PARK
BANCORPORATION & SUBSIDIARIES AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<EXCHANGE-RATE> 1
<CASH> 239,301
<INT-BEARING-DEPOSITS> 996,289
<FED-FUNDS-SOLD> 809,737
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 0
<INVESTMENTS-CARRYING> 182,367
<INVESTMENTS-MARKET> 185,782
<LOANS> 62,954,083
<ALLOWANCE> (285,000)
<TOTAL-ASSETS> 66,529,287
<DEPOSITS> 54,527,273
<SHORT-TERM> 2,000,000
<LIABILITIES-OTHER> 1,578,886
<LONG-TERM> 0
0
0
<COMMON> 10,117
<OTHER-SE> 8,413,011
<TOTAL-LIABILITIES-AND-EQUITY> 66,529,287
<INTEREST-LOAN> 1,152,505
<INTEREST-INVEST> 2,943
<INTEREST-OTHER> 47,459
<INTEREST-TOTAL> 1,202,907
<INTEREST-DEPOSIT> 626,304
<INTEREST-EXPENSE> 645,587
<INTEREST-INCOME-NET> 557,320
<LOAN-LOSSES> (2,400)
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 391,650
<INCOME-PRETAX> 187,661
<INCOME-PRE-EXTRAORDINARY> 187,661
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 114,661
<EPS-BASIC> 0.151
<EPS-DILUTED> 0.146
<YIELD-ACTUAL> 3.40
<LOANS-NON> 16,833
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> (282,600)
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> (285,000)
<ALLOWANCE-DOMESTIC> (285,000)
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
