-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PvDF0hvoagZ/+p5DG6IywiI/Ws72/giDUS5Ud3rd1KPsZocvquSFz/W0Wciy9fmH UC4INAS0T+1BTpkCctviTA== 0001025537-00-000064.txt : 20000511 0001025537-00-000064.hdr.sgml : 20000511 ACCESSION NUMBER: 0001025537-00-000064 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000510 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WYMAN PARK BANCORPORATION INC CENTRAL INDEX KEY: 0001046354 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 522068893 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-23345 FILM NUMBER: 623790 BUSINESS ADDRESS: STREET 1: 11 WEST RIDGELY RD CITY: LUTHERVILLE STATE: MD ZIP: 21094 BUSINESS PHONE: 4102526450 MAIL ADDRESS: STREET 1: 11 WEST RIDGELY RD CITY: LUTHERVILLE STATE: MD ZIP: 21094 10QSB 1 FORM 10QSB FOR WYMAN PARK BANCORPORATION, INC. 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 ---- 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 Wyman Park Bancorporation, Inc. and Subsidiaries Lutherville, Maryland Consolidated Statements of Financial Condition
March 31, June 30, 2000 1999 --------- -------- (Unaudited) Assets ------ 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 ------------ ------------
See accompanying notes to financial statements. 2 Wyman Park Bancorporation, Inc. and Subsidiaries Lutherville, Maryland Consolidated Statements of Operation (Unaudited)
For the Nine Months For the Three Months Ended March 31, Ended March 31, 2000 1999 2000 1999 ---- ---- ---- ---- 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
See accompanying notes to financial statements. 3 Wyman Park Bancorporation, Inc. and Subsidiaries Lutherville, Maryland CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Nine Months Ended March 31, --------------------------- 2000 1999 ---- ---- Cash Flows from operating activities - ------------------------------------ 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
See accompanying notes to financial statements. 4 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 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.
To Be Well Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions -------------------- -------------------- -------------------- Amount Ratio Amount Ratio Amount Ratio ------ ----- ------ ----- ------ ----- 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%
6 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 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 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 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 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 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 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 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 EX-27 2 FDS -- WYMAN PARK BANCORPORATION, INC.
9 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM WYMAN PARK BANCORPORATION & SUBSIDIARIES AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1 U.S. DOLLARS 3-MOS JUN-30-2000 JAN-01-2000 MAR-31-2000 1 239,301 996,289 809,737 0 0 182,367 185,782 62,954,083 (285,000) 66,529,287 54,527,273 2,000,000 1,578,886 0 0 0 10,117 8,413,011 66,529,287 1,152,505 2,943 47,459 1,202,907 626,304 645,587 557,320 (2,400) 0 391,650 187,661 187,661 0 0 114,661 0.151 0.146 3.40 16,833 0 0 0 (282,600) 0 0 (285,000) (285,000) 0 0
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