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 December 31, 1999
_________ 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 February 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
December 31, 1999 and June 30, 1999............................ 2
Consolidated Statements of Operations for the Three Month and Six
Month Period ended December 31, 1999 and 1998.................. 3
Consolidated Statements of Cash Flows for the Six Month
Periods Ended December 31, 1999 and 1998....................... 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>
December 31, June 30,
1999 1999
------------ --------
(Unaudited)
Assets
------
<S> <C> <C>
Cash and noninterest bearing deposits $ 729,688 $ 346,756
Interest bearing deposits in other banks 500,089 7,068,548
Federal funds sold 1,322,845 4,685,426
------------ ------------
Total cash and cash equivalents 2,552,622 12,100,730
Loans receivable, net 60,984,250 56,839,675
Mortgage-backed securities held to maturity
at amortized cost, fair value of $193,606 (12/99)
and $217,971 (6/99) 192,670 216,663
Federal Home Loan Bank of Atlanta stock, at cost 508,500 508,500
Accrued interest receivable 284,290 292,175
Ground rents owned, at cost 122,600 122,600
Property and equipment, net 133,868 155,281
Federal and state income taxes receivable -- 13,688
Deferred tax asset 218,040 189,020
Prepaid expenses and other assets 58,106 92,056
------------ ------------
Total Assets $ 65,054,946 $ 70,530,388
------------ ------------
Liabilities & Stockholders' Equity
----------------------------------
Liabilities:
Demand deposits $ 5,603,292 $ 5,803,776
Money market and NOW accounts 11,759,017 12,169,347
Time deposits 38,173,606 40,035,036
------------ ------------
Total deposits 55,535,915 58,008,159
Borrowings -- 2,650,000
Advance payments by borrowers for taxes,
insurance and ground rents 666,807 1,278,634
Accrued interest payable on savings deposits 19,710 20,148
Accrued interest on borrowings -- 5,038
Federal and state income taxes payable -- 727
Accrued expenses and other liabilities 599,714 538,375
------------ ------------
Total liabilities 56,822,146 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 3,959,985 3,959,985
Contra equity - Employee Stock Ownership Plan (ESOP) (632,420) (632,420)
Retained earnings, substantially restricted 6,094,882 5,891,389
Treasury Stock; 105,787 shares, at cost at
December 31, 1999 (1,199,764) (1,199,764)
------------ ------------
Total stockholders' equity 8,232,800 8,029,307
------------ ------------
Total liabilities and stockholders' equity $ 65,054,946 $ 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 Six Months For the Three Months
Ended December 31, Ended December 31,
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Interest and fees on loans receivable $2,167,573 $2,358,417 $1,103,859 $1,167,756
Interest on mortgage-backed securities 6,524 9,156 3,104 4,487
Interest on other investments 155,642 238,787 52,398 121,662
---------- ---------- ---------- ----------
Total interest income $2,329,739 $2,606,360 $1,159,361 $1,293,905
---------- ---------- ---------- ----------
Interest on savings deposits $1,277,148 $1,354,215 $ 623,340 $ 681,859
Interest on borrowed money 3,084 -- -- --
Interest on escrow deposits 1,143 1,374 308 550
---------- ---------- ---------- ----------
Total interest expense $1,281,375 $1,355,589 $ 623,648 $ 682,409
Net interest income before provision
for loan losses 1,048,364 1,250,771 535,713 611,496
Provision for loan losses -- 2,550 -- 550
---------- ---------- ---------- ----------
Net interest income $1,048,364 $1,248,221 $ 535,713 $ 610,946
---------- ---------- ---------- ----------
Other Income
- ------------
Loan fees and service charges $ 45,189 $ 33,482 $ 26,465 $ 17,219
Gain on sales of loans receivable -- 38,020 -- 31,673
Other 6,450 15,936 2,174 5,061
---------- ---------- ---------- ----------
Total other income $ 51,639 $ 87,438 $ 28,639 $ 53,953
---------- ---------- ---------- ----------
Noninterest Expenses
- --------------------
Salaries and employee benefits $ 435,038 $ 388,696 $ 205,440 $ 202,816
Occupancy costs 45,925 47,926 21,615 23,574
Professional services 49,367 35,615 27 297 24,736
Federal deposit insurance premiums 17,125 16,328 8,691 7,987
Furniture and fixtures depreciation and
maintenance 26,353 25,113 13,218 12,749
Data processing 43,228 36,909 22,927 15,577
Advertising 30,449 22,799 20,666 13,951
Franchise and other taxes 21,233 22,981 9,962 11,802
Other 96,771 107,434 50,238 58,140
---------- ---------- ---------- ----------
Total noninterest expenses $ 765,489 $ 703,801 $ 380,054 $ 371,332
Income before tax provision 334,514 631,858 184,298 293,567
Provision for income taxes 131,021 247,720 71,000 116,700
---------- ---------- ---------- ----------
Net Income $ 203,493 $ 384,138 $ 113,298 $ 176,867
---------- ---------- ---------- ----------
Basic net income per share $ 0.26 $ 0.42 $ 0.15 $ 0.20
Diluted net income per share $ 0.25 $ 0.42 $ 0.14 $ 0.20
</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>
Six Months Ended December 31,
-----------------------------
1999 1998
---- ----
Cash Flows from operating activities
- ------------------------------------
<S> <C> <C>
Net income $ 203,493 $ 384,138
Adjustments to reconcile net income to net
Cash provided by operating activities:
Depreciation and amortization 25,684 27,256
Provision for loan losses -- 2,550
Amortization of loan fees (29,700) (48,330)
Gain on sales of loans receivable -- (38,020)
Loans originated for sale -- (3,192,400)
Proceeds from loans originated for sale -- 3,230,420
Decrease in accrued interest receivable 7,885 48,963
Decrease in prepaid expenses and other assets 33,950 21,833
Increase in accrued expenses and other liabilities 61,339 59,616
Increase in deferred tax asset (29,020) --
Decrease in federal and state income taxes receivable 13,688 130
Decrease in federal and state income taxes payable (727) (270,621)
Increase (decrease)in accrued interest payable on
savings deposits (438) 2,826
Decrease in accrued interest payable on borrowings (5,038) --
------------ ------------
Net cash provided by operating activities 281,116 228,361
Cash flows from investing activities
- ------------------------------------
Proceeds from sale of ground rents -- 3,620
Net (increase) decrease in loans receivable (3,614,875) 1,696,711
Purchase of loan participations (500,000) (97,851)
Mortgage-backed securities principal repayments 23,993 34,311
Purchases of property and equipment (4,271) (5,129)
------------ ------------
Net cash used in investing activities (4,095,153) 1,631,662
Cash flows from financing activities
- ------------------------------------
Net increase (decrease) in savings deposits (2,472,244) 3,595,474
Net decrease in checks outstanding in excess of bank balance -- (143,430)
Decrease in borrowings (2,650,000) --
Decrease in advance payments by borrowers
for taxes, insurance and ground rents (611,827) (653,355)
Cash used for repurchase of common stock -- (571,365)
------------ ------------
Net cash provided by (used in) financing activities (5,734,071) 2,227,324
Net increase (decrease) in cash and cash equivalents $ (9,548,108) $ 4,087,347
Cash and cash equivalents at beginning of period 12,100,730 6,848,123
------------ ------------
Cash and cash equivalents at end of period $ 2,552,622 $ 10,935,470
------------ ------------
Supplemental information
- ------------------------
Interest paid on savings deposits and borrowed funds $ 1,281,375 $ 1,358,934
Income taxes paid $ 152,576 $ 518,570
</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 six months ended
December 31, 1999 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 six months ended December 31, 1999 and
1998 as follows:
Three Months Ended Six Months Ended
December 31, December 31,
1999 1998 1999 1998
---------------- ------------------
Net income $113,299 $176,867 $203,493 $384,138
Weighted average shares
Outstanding basic EPS 768,692 907,624 783,316 923,970
Dilutive items
Stock options 32,417 -- 32,614 --
Unvested stock awards 2,309 -- 2,359 --
Adjusted weighted average shares
Outstanding used for diluted EPS 803,418 907,624 818,289 923,970
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 December 31, 1999
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) $ 7,331,059 19.6% $2,996,679 8.0% $3,745,849 10.0%
Tier I capital (to
Risk Weighted
Assets) 7,048,459 18.8% 1,498,340 4.0% 2,247,509 6.0%
Tier 1 Capital (to
Average Assets) 7,048,459 10.8% 2,602,463 4.0% 3,253,079 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.
IMPACT OF THE YEAR 2000
The Company had conducted a comprehensive review of its environment and computer
systems to identify any potential risk associated with the Year 2000, and had
developed an implementation plan to address the issues.
Certain hardware and equipment that was not Year 2000 compliant was replaced
and the related capital expenditures totaling approximately $12,000.00 were
included in the 1999 fiscal year results. The Company did not incur any material
expenses related to the Year 2000 problem during the six months ended December
31, 1999. The Company did not experience any operational difficulties related to
the onset of the Year 2000.
8
<PAGE>
COMPARISON OF FINANCIAL CONDITION AT DECEMBER 31, 1999 AND JUNE 30, 1999
The Company's assets decreased $5.4 million or 7.7% to $65.1 million at December
31, 1999 from $70.5 million at June 30, 1999. Cash and cash equivalents
decreased $9.5 million or 78.5% to $2.6 million at December 31, 1999 from $12.1
million at June 30, 1999, primarily as a result of the funding of an increase in
net loans receivables, the payoff of borrowings and a decrease in savings
deposits. Net loans receivable increased $4.2 million or 7.4% to $61.0 million
at December 31, 1999 from $56.8 million at June 30, 1999, as the Association
originated adjustable rate and commercial loans for its own portfolio rather
than for sale. The $4.2 million increase in net loans receivable was primarily
the result of an increase of $2.8 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 $2.5
million or 4.3% to $55.5 million at December 31, 1999 from $58.0 million at June
30, 1999. The Company's stockholders' equity increased $200,000 or 2.5% to $8.2
million at December 31, 1999 from $8.0 million at June 30, 1999, as a result of
net income of $203,000 for the six months ended December 31, 1999.
COMPARISON OF OPERATING RESULTS FOR THE QUARTER AND SIX MONTHS ENDED DECEMBER
31, 1999 AND DECEMBER 31, 1998
Net Income
- ----------
The Company reported net income of $113,000 for the quarter ended December 31,
1999 compared to $177,000 for the quarter ended December 31, 1998. The $64,000
decline in net income was primarily due to a decrease in net interest income of
$75,000, and a decrease in other income of $25,000, partially offset by a
decrease in income tax expense of $46,000.
The Company's net income for the six months ended December 31, 1999 was $203,000
compared to $384,000 for the six months ended December 31, 1998. The $181,000
decrease in net income was primarily due to a decrease in net interest income of
$203,000, a decrease in other income of $35,000 and an increase in noninterest
expense of $61,000, partially offset by a decrease in income tax expense of
$117,000.
Interest Income
- ---------------
Total interest income decreased by $135,000 or 10.4% to $1,159,000 for the
quarter ended December 31, 1999 from $1,294,000 for the quarter ended December
31, 1998. The decrease in total interest income for the comparable three months
periods was due primarily to a decrease of $8.1 million in the average balance
of interest-earning assets to $63.5 million from $71.6 million.
Total interest income decreased by $276,000 or 10.6% to $2,330,000 for the six
months ended December 31, 1999 from $2,606,000 for the six months ended December
31, 1998.
9
<PAGE>
The decrease in total interest income for the comparable six months periods was
due to a decrease of $6.6 million in the average balance of interest-earning
assets to $64.3 million from $70.9 million and a decrease of 10 basis points in
the average yield on interest-earning assets from 7.35% to 7.25%.
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 $58,000 or 8.5% to $624,000 for the quarter
ended December 31, 1999 from $682,000 for the quarter ended December 31, 1998.
The decrease in total interest expense for the comparable three months periods
was due to a decrease of 28 basis points in the average yield on
interest-bearing liabilities to 4.49% from 4.77%, as well as a decrease of $1.7
million in the average balance of interest-bearing liabilities to $55.5 million
from $57.2 million.
Total interest expense decreased by $75,000 or 5.5% to $1,281,000 for the six
months ended December 31, 1999 from $1,356,000 for the six months ended December
31, 1998. The decrease in total interest expense for the comparable six months
periods was due to a decrease of 25 basis points in the average yield on
interest bearing liabilities to 4.55% from 4.80% accompanied by a decrease of
$300,000 in the average balance of interest bearing liabilities to $56.2 million
from $56.5 million.
The decrease in the average balance of interest-bearing liabilities is due to a
decrease in average savings deposits for the three and six months comparable
periods.
Net Interest Income
- -------------------
The Company's net interest income decreased by $75,000 or 12.3% to $536,000 for
the quarter ended December 31, 1999 from $611,000 for the quarter ended December
31, 1998. 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 114.3% from 125.2%, 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 decreased 5 basis points to 3.37% from
3.42%.
The Company's net interest income decreased by $203,000 or 16.2% to $1,048,000
for the six months ended December 31, 1999 from $1,251,000 for the six months
ended December 31, 1998. 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 114.4% from 125.6%. The Company's net yield on
interest-earning assets decreased by 25 basis points to 3.27% from 3.52%.
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 six months
ended December 31, 1999, the Company recorded no provision for loan losses
compared to $2,550 for the six months ended December 31,1998. The Company's
nonperforming loans as a percentage of loans receivable was 0.19% and 0.00% at
December 31, 1999, and June 30, 1999, respectively, all consisting of
single-family residential mortgage loans.
Noninterest Income
- ------------------
Total noninterest income decreased by $25,000 or 46.3% to $29,000 for the
quarter ended December 31, 1999 from $54,000 for the quarter ended December 31,
1998. The decrease in noninterest income was due primarily to a decrease of
$32,000 in gain on sales of loans receivable to $0 for the quarter ended
December 31, 1999 from $32,000 for the quarter ended December 31, 1998.
Total noninterest income decreased by $35,000 or 40.2% to $52,000 for the six
months ended December 31, 1999 from $87,000 for the six months ended December
31, 1998. The decrease in noninterest income was due primarily to a decrease of
$38,000 in gain on sales of loans receivable to $0 for the six months ended
December 31, 1999 from $38,000 for the six months ended December 31, 1998.
Noninterest Expenses
- --------------------
Total noninterest expenses increased by $9,000 or 2.4% to $380,000 for the
quarter ended December 31, 1999 from $371,000 for the quarter ended December
31,1998. The increase in noninterest expenses was primarily due to an increase
in data processing expense of $7,000 or 43.8% to $23,000 for the quarter ended
December 31,1999 from $16,000 for the quarter ended December 31, 1998. The
increase in data processing costs was due to system enhancements initiated by
the Company's third party processor.
Total noninterest expenses increased by $61,000 or 8.7% to $765,000 for the six
months ended December 31, 1999 from $704,000 for the six months ended December
31, 1998. The increase in noninterest expenses was primarily due to an increase
in salaries and employee benefits expense of $46,000 or 11.8% to $435,000 for
the six months ended December 1999 from $389,000 for the six months ended
December 31, 1998. Also, professional services increased $13,000 or 36.1% to
$49,000 for the six months ended December 31, 1999 from $36,000 for the six
months ended December 31, 1998. The increase in salaries and employee benefits
expense was primarily due to expenses related to the Company's Recognition and
Retention Plan (RRP). The increase in professional services was due to increased
legal and auditing fees.
11
<PAGE>
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 December 31, 1999, the
Company's cash on hand, interest bearing deposits, Federal funds sold and
short-term investments totaled $2.6 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 $4.2 million as of December 31, 1999.
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 December 31, 1999 totaled
$23.9 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 six months
ended December 31, 1999 were a net increase of $3.6 million in loans receivable,
in addition to the purchase of loan participations of $500,000.
The Company's primary uses of cash in financing activities during the six months
ended December 31, 1999 consisted of a net decrease of $2.7 million in
borrowings, a net decrease of $2.5 million in savings deposits, and a decrease
of $600,000 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
(a) On October 20, 1999, Wyman Park Bancorporation, Inc. (the
"Company") held its Annual Meeting of Stockholders.
(b) Not Applicable
(c) Stockholders voted on the following matters:
(i) The election of the following three directors of the Company;
Votes: For Withheld
------ --- --------
G. Scott Barhight 864,398 50
Ernest A. Moretti 862,998 1,450
John K. White 863,398 1,050
As a result, G. Scott Barhight, Ernest A. Moretti and John K. White
were elected directors for terms to expire in 2002. There were no
abstentions or broker non votes.
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: February 10, 2000 /s/ Ernest A. Moretti
-----------------------------------
Ernest A. Moretti
President and Chief Executive Officer
(Principal Executive Officer)
Date: February 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 AND SUBSIDIARIES AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0001046354
<NAME> Wyman Park Bancorporation
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> OCT-01-1999
<PERIOD-END> DEC-31-1999
<EXCHANGE-RATE> 1
<CASH> 729,688
<INT-BEARING-DEPOSITS> 500,089
<FED-FUNDS-SOLD> 1,322,845
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 0
<INVESTMENTS-CARRYING> 192,670
<INVESTMENTS-MARKET> 193,606
<LOANS> 60,984,250
<ALLOWANCE> (282,600)
<TOTAL-ASSETS> 65,054,946
<DEPOSITS> 55,535,915
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,286,231
<LONG-TERM> 0
0
0
<COMMON> 10,117
<OTHER-SE> 8,222,683
<TOTAL-LIABILITIES-AND-EQUITY> 65,054,946
<INTEREST-LOAN> 1,103,859
<INTEREST-INVEST> 3,104
<INTEREST-OTHER> 52,398
<INTEREST-TOTAL> 1,159,361
<INTEREST-DEPOSIT> 623,340
<INTEREST-EXPENSE> 623,648
<INTEREST-INCOME-NET> 535,713
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 380,054
<INCOME-PRETAX> 184,298
<INCOME-PRE-EXTRAORDINARY> 184,298
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 113,298
<EPS-BASIC> 0.147
<EPS-DILUTED> 0.141
<YIELD-ACTUAL> 3.37
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> (282,600)
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> (282,600)
<ALLOWANCE-DOMESTIC> (282,600)
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
