SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(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
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES AND EXCHANGE ACT OF 1934
Commission File Number 0-631
WEBFINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 56-2043000
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
150 East 52nd Street, 21st Floor
New York, New York
10022
(Address and zip code of principal executive offices)
877-431-2942
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes (X) No ( )
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes (X) No ( )
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practical date.
Class Outstanding at May 15, 2000
Common Stock, par value $.001 4,354,280 Shares
<PAGE>
WEBFINANCIAL CORPORATION AND SUBSIDIARIES
FORM 10-Q
INDEX
PART 1--FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements:
Consolidated Statements of Financial Condition
March 31, 2000 and December 31, 1999 2
Consolidated Statements of Operations
for the three months ended March 31, 2000 and 1999 4
Consolidated Statements of Cash Flow
for the three months ended March 31, 2000 and 1999 5
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
Item 3. Quantitative and Qualitative Disclosures
About Market Risk 10
PART II--OTHER INFORMATION
Item 1. Legal Proceedings 13
Item 2. Changes in Securities 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 14
Signatures 15
<PAGE>
PART I--FINANCIAL INFORMATION
Item 1. CONSOLIDATED FINANCIAL STATEMENTS (Amounts in thousands except per
share amounts)
WEBFINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
March 31, 2000 December 31, 1999
-------------- -----------------
(unaudited)
Assets
<S> <C> <C>
Cash and cash equivalents $ 7,171 $ 7,266
Investment securities
Held-to-maturity (estimated fair value $37
at March 31, 2000 and December 31, 1999) 37 37
Available-for-sale 973 858
------------- ------------
Total investment securities 1,010 895
Loans, net of deferred premium 11,618 10,868
Less allowance for loan loss 541 472
------------- ------------
Loans, net 11,077 10,396
Accounts receivable 5 14
Prepaid expense 106 63
Premises and equipment,
net of accumulated depreciation and amortization 95 101
Accrued interest receivable 219 163
Goodwill, net of accumulated
amortization of $187 and $158 1,587 1,616
Other assets 528 428
------------- ------------
$ 21,798 $ 20,942
============= ============
</TABLE>
<PAGE>
WEBFINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (continued)
<TABLE>
<CAPTION>
March 31, 2000 December 31, 1999
-------------- -----------------
(unaudited)
Liabilities and Stockholders' Equity
<S> <C> <C>
Deposits:
Non interest-bearing demand $ 250 $ 250
Interest-bearing time certificates of deposit 5,846 4,639
------------- ------------
Total deposits 6,096 4,889
Short term borrowing 775 1,100
Accounts payable and accrued liabilities 1,030 953
Deferred revenue, net 154 -
Servicing liability 103 108
------------- ------------
Total liabilities before minority interests 8,158 7,050
Commitments and contingencies - -
Minority interests 470 457
Stockholders' Equity
Preferred stock, 10,000,000 shares authorized, none issued - -
Common stock, 50,000,000 shares authorized;
$.001 par value, 4,354,280 and 4,310,192 shares issued
and outstanding at March 31, 2000 and
December 31, 1999, respectively 4 4
Paid-in capital 36,602 36,578
Unearned compensation (65) (65)
Accumulated deficit (23,371) (23,082)
------------- ------------
Total stockholders' equity 13,170 13,435
------------- ------------
$ 21,798 $ 20,942
============= ============
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
WEBFINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Amounts in thousands except per share amounts)
<TABLE>
<CAPTION>
For the Three Months Ended
March 31, 2000 March 31, 1999
-------------- --------------
<S> <C> <C>
Interest and fees on commercial loans $ 303 $ 37
Interest on cash and cash equivalents 83 117
Interest on investment securities available for sale 20 36
---------------- --------------
Total interest income 406 190
Interest expense 94 15
---------------- --------------
Net interest income before loan loss provision 312 175
Loan loss provision 65 26
---------------- --------------
Net interest income after loan loss provision 247 149
---------------- --------------
Non interest income:
Gain on sale of commercial loans 22 172
Fee income on loans 212 -
Fee income on structured settlements 95 -
Credit card servicing 50 -
Other income - 15
---------------- --------------
Total non interest income 379 187
Non interest expenses:
Salaries 472 410
Occupancy 38 52
Goodwill amortization 30 32
Selling, general and administrative 353 377
Other 35 -
---------------- --------------
Total non interest expenses 928 871
Loss before minority interests (302) (535)
----------------- --------------
Loss attributable to minority interests 13 41
---------------- --------------
Net loss $ (289) $ (494)
================ ==============
Basic and diluted net loss per share $ (.07) $ (.12)
Weighted average number of common shares and
common share equivalents, basic and diluted 4,352,820 4,246,314
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
WEBFINANCIAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited)
(Amounts in thousands)
<TABLE>
<CAPTION>
For the Three For the Three
Months Ended Months Ended
March 31, 2000 March 31, 1999
-------------- --------------
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (289) $ (494)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Minority interest 13 (41)
Depreciation and amortization 6 16
Common stock granted in lieu of cash 24 -
Gain on sale of commercial loan (22) (172)
Deferred revenue, net 154 -
Loan loss provision 65 26
Amortization of loan premiums - 6
Amortization of goodwill 29 32
Amortization of premiums for available-for-sale securities - 27
Amortization of servicing asset (5) -
Cash restricted in escrow - 1,687
Net changes in:
Accounts receivable 9 -
Prepaid expenses (43) (47)
Accrued interest receivable (56) (13)
Other assets (100) (5)
Accounts payable and accrued expenses 77 (20)
------------ -------------
Net cash provided by (used in) operating activities (138) 1,002
Cash flows from investing activities:
Principal payments received on available-for-sale securities - 220
Purchase of available-for-sale securities (115) (204)
Purchase of property and equipment - (4)
Net increase in loans (724) (1,222)
------------ ------------
Net cash used in investing activities (839) (1,210)
Cash flows provided by financing activities-
Net increase in deposits 1,207 2,607
Net decrease in line of credit (325) -
------------ ------------
Net cash provided by financing activities 882 2,607
Net increase (decrease) in cash and cash equivalents (95) 2,399
Cash and cash equivalents at beginning of period 7,266 8,681
------------ ------------
Cash and cash equivalents at end of period $ 7,171 $ 11,080
============ =============
</TABLE>
<PAGE>
WEBFINANCIAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) (continued)
(Amounts in thousands)
<TABLE>
<S> <C> <C>
Supplemental disclosure of additional cash activities:
Cash paid for interest $ 94 $ 15
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
WEBFINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2000 and December 31, 1999
(Amounts in thousands except per share amounts)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation--The accompanying interim consolidated financial
statements of WebFinancial Corporation and its subsidiaries (the "Company") are
unaudited and have been prepared in conformity with the requirements of
Regulations S-X promulgated under the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), particularly Rule 10-01 thereof, which governs the
presentation of interim financial statements. Accordingly, they do not include
all of the information and footnotes required by generally accepted accounting
principles for complete financial statements. The accompanying interim
consolidated financial statements should be read in conjunction with the
Company's significant accounting policies as set forth in Note 1 to the
consolidated financial statements in the 1999 Annual Report on Form 10-K. The
consolidated Statement of Financial Condition at December 31, 1999 was extracted
from the Company's audited consolidated financial statements contained in the
1999 10-K, and does not include all disclosures required by generally accepted
accounting principles for annual consolidated financial statements.
In the opinion of management, all adjustments are comprised of normal
recurring accruals necessary for the fair presentation of the interim financial
statements. Operating results for the quarter ended March 31, 2000 are not
necessarily indicative of the results that may be expected for the year ending
December 31, 2000.
2. ORGANIZATION AND RELATIONSHIPS
The consolidated financial statements include the financial statements of
WebFinancial Corporation and its subsidiaries: WebFinancial Holding Corporation
("Holding"), WebBank ("WebBank"), Praxis Investment Advisers, Inc. ("Praxis"),
WebFinancial Government Lending, Inc. ("Lending"), and Web Film Financial, Inc.
("Film"), collectively referred to as the Company. WebBank is a Utah-chartered
industrial loan corporation, and is subject to comprehensive regulation,
examination, and supervision by the Federal Deposit Insurance Corporation
("FDIC"), and the State of Utah Department of Financial Institutions. WebBank
provides commercial and consumer specialty finance services.
The Company has received approval of the Department of Financial
Institutions of the State of Utah to cause Lending to become a direct subsidiary
of WebBank and that transaction is expected to be completed in 2000.
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the interim
consolidated financial statements of the Company and the Notes thereto.
OVERVIEW
Business Description WebFinancial Corporation, formerly Rose's Holdings,
Inc., is a holding company headquartered in New York, NY. As of March 31, 2000,
the Company holds $7,171,000 in cash, has no long term debt, and owns 100% of
WebFinancial Holding Corporation ("Holding"), an intermediary holding company,
which owns 90% of WebBank, 90% of Praxis Investment Advisers, Inc. ("Praxis"),
100% of Web Financial Government Lending Corporation ("Lending"), and 100% of
Web Film Financial, Inc. ("Film"). The former President and CEO of Holding, is
the sole minority stockholder and owns the other 10% of WebBank and Praxis.
WebBank, located in Salt Lake City, Utah, is a Utah chartered Industrial
Loan Corporation ("ILC") regulated by the Federal Deposit Insurance Corporation
("FDIC") and Utah Department of Financial Institutions and has recently become a
member of the Seattle Federal Home Loan Bank. The ILC charter has the ability to
attract FDIC insured deposits, underwrite insurance, and export Utah's favorable
interest rates and terms to 48 other states. At present, WebBank has one office
and has no plan to open any other offices. Due to the benefits and powers of the
Utah ILC charter, WebBank is uniquely positioned to develop loan products and
provide other banking services that could be distributed throughout the United
States. WebBank was purchased in August 1998 from H&R Block.
WebBank's business plan contains three facets: Portfolio Income,
Origination of USDA B&I loans and SBA loans (as defined below), and Sourcing
Partnerships.
Portfolio Income - WebBank is acquiring assets for its portfolio which
will include loans funded under U.S. Government credit enhancement
programs such as USDA Rural Development Business and Industry Loans
("USDA B&I"), Small Business Administration loans ("SBA"), and
investment grade securities. Deposits accessed from strategic partners
and certificates of deposit ("CD's") acquired through a brokered CD
program fund the purchases of these assets. At present, WebBank has
about $13.3 million of assets and $6.1 million of deposits, and
believes it will be able to grow its asset base to approximately $40
million without any additional equity.
Origination of USDA B&I loans and SBA loans - These Loan programs are
sponsored by U.S. Government agencies that encourage lending to small
businesses by guaranteeing a portion of the loan (up to 90%) with a
full faith and credit guarantee of the United States Government. In
fiscal year 1999, the USDA B&I loan guarantee program had the authority
to guarantee up to $1 billion dollars, and since 1994 this program has
guaranteed about $3.5 billion dollars of B&I loans. Generally, USDA B&I
loans tend to be for amounts less than $10 million, and WebBank has
been able to structure these loans with prepayment penalties,
adjustable rates, and other features to enhance the safety and
marketability of the loans. To date, WebBank has funded $14.8 million
of these loans, and has signed commitment letters for approximately
$14.5 million of additional loans. WebBank expects to close all of
these potential loans in the next 3 months. In general, the WebBank
will sell the guaranteed portions of the loans while retaining the
unguaranteed portions and servicing rights to the loans.
Sourcing Partnerships - Sourcing Partnerships are joint ventures in
which WebBank works with certain specialty loan originators. WebBank's
Utah Industrial Loan Charter allows the originator flexibility
regarding loan structure, terms and/or conditions. In general, WebBank
and its Sourcing Partner ("Partner") will jointly agree on underwriting
criteria. The Partner will agree contractually to purchase loans
WebBank originates under the program and to directly reimburse WebBank
for any and all costs of origination, including legal, compliance,
management oversight, and audit costs. WebBank's Partners will
contribute marketing, sales, in-depth industry knowledge and an
origination network. WebBank will establish underwriting standards and
approve the credit and originate qualifying loans presented by the
Partners. WebBank may resell the loans to the Partner, thereby
minimizing portfolio and credit risk while securing attractive fees.
WebBank believes these arrangements can generate consistent fee based
income streams without any significant risks to WebBank or depositors
and with minimal incremental expense to WebBank (since all expenses
will be reimbursed). Additionally, the Partners will place a deposit in
WebBank in excess of the daily production of their loan program, with
WebBank's right to offset any losses against these deposits. At
present, WebBank has five Sourcing Partnerships that are generating
loans. WebBank is currently negotiating with other specialty loan and
credit card issuers.
WebFinancial Government Lending, Inc - In late June 1999, the Company
funded Lending to compliment and support the government lending activities of
WebBank. In the second quarter of 2000, Lending is expected to become a direct
subsidiary of WebBank.
On December 31, 1999, the Company had net operating loss carry-forwards of
approximately $37 million that are scheduled to expire during the years ending
2010 through 2018. The Company has treated net operating losses incurred prior
to April 28, 1995 (the "Effective Date") in accordance with Section 382(1)(5) of
the Internal Revenue Code. As a result, there is approximately $27 million in
net operating losses incurred prior to the Effective Date as well as $10 million
incurred subsequent to the Effective Date available as carryovers.
At the June 26, 1997 meeting the Company's shareholders approved an
amendment to the Corporation's Certificate of Incorporation to prohibit
purchases of more than 5% of the Company's shares. The purpose of this
limitation is to help assure that the consolidated corporation's substantial tax
benefits (in the form of net operating loss carry-forwards) will continue to be
available to offset future taxable income.
RESULTS OF OPERATIONS
Revenue - The Company reported net interest income after loan loss
provision for the three months ended March 31, 2000 and 1999 of $247,000 and
$149,000, respectively. Servicing income and other income totaled $379,000 and
$187,000, for the three months ended March 31, 2000 and 1999. The increases in
net interest income after loan losses and servicing income and other income
result primarily from greater loan volume.
Costs and Expenses - Operating expenses totaled $928,000 and $871,000, for
the three months ended March 31, 2000 and 1999, respectively, and consisted
primarily of salary and benefits, facilities rentals, and professional fees. The
increase in Salaries was due to the amounts owed to certain terminated officers
of WebBank.
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 2000 and December 31, 1999 the Company's cash and cash
equivalents totaled approximately $7,171,000 and $7,266,000, respectively. Cash
utilized by WebBank for loan activity offset by increased time deposits are
major factors affecting the cash and cash equivalent decrease. Management
believes that the Company's current cash and cash equivalent balances and
expected operating cash flows and available credit lines are adequate to meet
its liquidity needs through the next year.
The Company continues to actively seek acquisition transactions. There can
be no assurance that the Company will be able to locate or purchase an
additional business, or that such business, will be profitable. In order to
finance an acquisition, the Company may be required to incur or assume
indebtedness or issue securities.
<PAGE>
FORWARD-LOOKING STATEMENTS
The following important factors, among others, could cause actual results
to differ materially from those indicated by forward-looking statements made in
this Quarterly Report of Form 10-Q and presented elsewhere by management. All
forward-looking statements included in this document are based on information
available to the Company on the date hereof, and the Company assumes no
obligation to update any such forward-looking statements. A number of
uncertainties exist that could affect the Company's future operating results,
including, without limitation, general economic conditions, changes in interest
rates, the company's ability to attract deposits, and the Company's ability to
control costs. Because of these and other factors, past financial performance
should not be considered an indication of future performance. The Company's
future quarterly operating results may vary significantly. Investors should not
use historical trends to anticipate future results and should be aware that the
trading price of the Company's Common Stock may be subject to wide fluctuations
in response to quarterly variations in operating results and other factors,
including those discussed above.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company maintains an investment portfolio and participates in
commercial loans. Both of these activities are subject to specific policies that
are focused on preserving principal, maintaining proper liquidity to meet
operating needs, and maximizing yields.
The Company's operations may be subject to a variety of market risks, the
most material of which is the risk of changing interest rates. Most generally,
interest rate risk is the volatility in financial performance attributable to
changes in market interest rates, which may result in either fluctuation of net
interest income or changes to the economic value of the equity of the Company.
The following discusses certain factors which may affect the Company's
financial results and operations and should be considered in evaluating the
Company.
Interest Rates. The Company's earnings are impacted by changing interest
rates. Changes in interest rates impact the level of loans, deposits and
investments, the credit profile of existing loans, the rates received on loans
and securities and the rates paid on deposits and borrowings. The Company
anticipates that interest rates may continue to increase should the Federal
Reserve Board continue to raise rates. However, significant fluctuations in
interest rates may have an adverse affect on the Company's financial condition
and results of operations.
Government Regulation and Monetary Policy. The banking industry is subject
to extensive federal and state supervision and regulation. Significant new laws
or changes in existing laws, or repeals of existing laws may cause the Company's
results to differ materially. Further, federal monetary policy, particularly as
implemented through the Federal Reserve System, significantly affects credit
conditions for the Company and a material change in these conditions could have
a material adverse impact on the Company's financial condition and results of
operations.
Competition. The banking and financial services businesses in the Company's
lines of business are highly competitive. The increasingly competitive
environment is a result of changes in regulation, changes in technology and
product delivery systems, and the accelerating pace of consolidation among
financial services providers. The results of the Company may differ if
circumstances affecting the nature or level of competition change.
Credit Quality. A source of risk arises from the possibility that losses
will be sustained because borrowers, guarantors and related parties may fail to
perform in accordance with the terms of their loans. The Company has adopted
underwriting and credit monitoring procedures and credit policies, including the
establishment and review of the allowance for credit losses, that management
believes are appropriate to minimize this risk by assessing the likelihood of
nonperformance, tracking loan performance and diversifying the Company's credit
portfolio. These policies and procedures, however, may not prevent unexpected
losses that could have a material adverse effect on the Company's results.
Non-banking Activities. The Company may expand its operations into new
non-banking activities in 2000. Although the Company has experience in providing
bank-related services, this expertise may not assist us in our expansion into
non-banking activities. As a result, we may be exposed to risks associated with,
among other things, (1) a lack of market and product knowledge or awareness of
other industry related matters and (2) an inability to attract and retain
qualified employees with experience in these non-banking activities.
Year 2000 Compliance. Most of the Company's operations are dependent on the
efficient functioning of the Company's computer systems and software. Computer
system failures or disruption could have a material adverse effect on the
Company's financial condition and results of operations. As of May 3, 2000,
WebBank experienced no problems with respect to Year 2000 technology issues.
This does not mean that some problems may not occur in the future.
Proposed Legislation. From time to time, various types of federal and state
legislation have been proposed that could result in additional regulation of,
and modifications of restrictions on, the business of the Company. It cannot be
predicted whether any legislation currently being considered will be adopted or
how such legislation or any other legislation that might be enacted in the
future would affect the business of the Company.
Other Risks. From time to time, the Company details other risks with
respect to its business and/or financial results in its filings with the
Commission.
<PAGE>
WEBFINANCIAL CORPORATION AND SUBSIDIARIES
PART II--OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS.
In January 2000, a former executive officer and director of the Company's
subsidiary Praxis (the "officer") filed a lawsuit in the Superior Court of the
State of California, County of Napa against the Company, Praxis and Holdings.
The lawsuit alleges that Praxis has breached its employment agreement with the
officer. The lawsuit also asserts claims for interference with contract and
unjust enrichment based upon the purported wrongful termination of the officer's
employment contract with Praxis. The lawsuit seeks damages of an unspecified
amount and compliance by Praxis with the termination pay out provisions in the
officer's employment agreement relating to purchase of the officer's 10%
interest in Praxis and WebBank (both 90% owned subsidiaries of the Company) at
their fair market value. The time for the Company to answer and assert
Counterclaims in this matter has not yet expired. The Company and Praxis deny
that Praxis wrongfully terminated the officer's employment and intend to
vigorously defend this matter. The Company does not believe that this lawsuit
will have a material adverse impact on its financial condition, results of
operations, or liquidity.
Item 2. CHANGES IN SECURITIES.
During January 2000, a total of 4,284 shares of Company stock were issued
to three board members as compensation for their services during the two
previous quarters. The fair market value of the stock on the day it was issued
was $5.60 per share.
Item 3. DEFAULTS UPON SENIOR SECURITIES.
Not applicable.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
No matter was submitted to a vote of security holders during the period
covered by this report.
Item 5. OTHER INFORMATION.
None
<PAGE>
Item 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits
See exhibit index immediately following the signature page.
(b) Reports in Form 8-K
There were no 8-K reports filed by the company during the
quarter ended March 31, 2000. However, the Company filed an
8-K report on May 4, 2000 reporting the change in its
certified public accountants.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
WEBFINANCIAL CORPORATION
By /s/Warren G. Lichtenstein
Warren G. Lichtenstein
President
By /s/Jack L. Howard
Jack L. Howard
Vice President
Date: May 15,2000
<PAGE>
EXHIBIT INDEX
11 Statement Regarding Computation of Net Loss Per Share
27 Financial Data Schedule as Part of the Electronic Filing Only
<PAGE>
Exhibit 11
WEBFINANCIAL CORPORATION. AND SUBSIDIARIES
Statement Regarding Computation of Net Loss Per Share
<TABLE>
<CAPTION>
For the Three For the Three
Months Ended Months Ended
March 31, 2000 March 31, 1999
-------------- --------------
<S> <C> <C>
Net loss $ (289) $ (494)
Weighted average common shares outstanding 4,352,820 4,246,314
Shares used in computation 4,352,820 4,246,314
============== ==============
Net loss per share $ (.07) $ (.12)
============= =============
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<CIK> 0000085149
<NAME> WEBFINANCIAL CORPORATION
<MULTIPLIER> 1,000
<CURRENCY> DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<EXCHANGE-RATE> 1
<CASH> 7,171
<INT-BEARING-DEPOSITS> 5,151
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 0
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 1,010
<LOANS> 11,618
<ALLOWANCE> 541
<TOTAL-ASSETS> 21,798
<DEPOSITS> 6,096
<SHORT-TERM> 775
<LIABILITIES-OTHER> 1,287
<LONG-TERM> 0
0
0
<COMMON> 4
<OTHER-SE> 13,166
<TOTAL-LIABILITIES-AND-EQUITY> 21,798
<INTEREST-LOAN> 303
<INTEREST-INVEST> 20
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 406
<INTEREST-DEPOSIT> 83
<INTEREST-EXPENSE> 94
<INTEREST-INCOME-NET> 312
<LOAN-LOSSES> 65
<SECURITIES-GAINS> 22
<EXPENSE-OTHER> 928
<INCOME-PRETAX> (289)
<INCOME-PRE-EXTRAORDINARY> (289)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (289)
<EPS-BASIC> (.07)
<EPS-DILUTED> (.07)
<YIELD-ACTUAL> 0
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 0
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 541
<ALLOWANCE-DOMESTIC> 541
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
