-----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, ODqy2yksszo3f55xhaA1U9ejd34wL7BF3TuZHKT30eKhjxW8nUCsw2SSWLP55C2h mLXEXMrjK+0yTmI2aVIj4w== 0001025537-02-000013.txt : 20020414 0001025537-02-000013.hdr.sgml : 20020414 ACCESSION NUMBER: 0001025537-02-000013 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20011231 FILED AS OF DATE: 20020205 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: 1934 Act SEC FILE NUMBER: 000-23345 FILM NUMBER: 02526759 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 wyman10qsb12312001.txt WYMAN PARK 10QSB 12/31/2001 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, 2001 _____ 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 5, 2002, the issuer had 822,490 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 December 31, 2001 and June 30, 2001................................. 2 Consolidated Statements of Operations for the Three Month and Six Month Periods ended December 31, 2001 and 2000.... ................. 3 Consolidated Statements of Cash Flows for the Six Month Periods Ended December 31, 2001 and 2000............................ 4 Notes to Consolidated Financial Statements........................ 5-6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations............................................ 7-12 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
December 31 June 30, 2001 2001 ------------- ------------ (Unaudited) Assets ------ Cash and noninterest bearing deposits $ 463,437 $ 882,696 Interest bearing deposits in other banks 294,644 93,680 Federal funds sold 1,397,657 3,455,641 ------------ ------------ Total cash and cash equivalents 2,155,738 4,432,017 Investments 2,509,778 -- Loans receivable, net 62,290,102 64,712,777 Mortgage-backed securities held to maturity at amortized cost, fair value of $131,709 (12/2001) and $146,691 (6/2001) 128,533 145,796 Federal Home Loan Bank of Atlanta stock, at cost 528,900 528,900 Accrued interest receivable 290,398 345,969 Ground rents owned, at cost 120,100 122,600 Property and equipment, net 74,706 83,069 Federal and state income taxes receivable 12,191 6,237 Deferred tax asset 217,646 217,646 Prepaid expenses and other assets 71,678 53,596 ------------ ------------ Total Assets $ 68,399,770 $ 70,648,607 ------------ ------------ Liabilities & Stockholders'Equity --------------------------------- Liabilities: Demand deposits $ 5,178,402 $ 5,246,632 Money market and NOW accounts 9,291,639 9,454,074 Time deposits 43,840,991 45,481,277 ------------ ------------ Total deposits 58,311,032 60,181,983 Advance payments by borrowers for taxes, insurance and ground rents 508,058 1,196,077 Accrued interest payable on savings deposits 8,677 12,544 Federal and state income taxes payable 2,893 20,455 Accrued expenses and other liabilities 675,655 556,820 ------------ ------------ Total liabilities 59,506,315 61,967,879 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 4,146,711 4,149,733 Contra equity - Employee Stock Ownership Plan (ESOP) (451,008) (451,008) Retained earnings, substantially restricted 6,936,575 6,720,826 Treasury Stock; 189,223 shares at cost at December 31, 2001 and June 30, 2001 (1,748,940) (1,748,940) ------------ ------------ Total stockholders' equity 8,893,455 8,680,728 ------------ ------------ Total liabilities and stockholders' equity $ 68,399,770 $ 70,648,607 ------------ ------------
See accompanying notes to financial statements. 2 Wyman Park Bancorporation, Inc. and Subsidiaries Lutherville, Maryland Consolidated Statements of Operation (Unaudited)
For the Six Months For the Three Months Ended December 31, Ended December 31, 2001 2000 2001 2000 ---- ---- ---- ---- Interest and fees on loans receivable $2,333,405 $2,455,594 $1,151,429 $1,237,315 Interest on mortgage-backed securities 4,336 6,496 2,122 3,191 Interest on other investments 81,324 105,812 38,435 53,938 ---------- ---------- ---------- ---------- Total interest income $2,419,065 $2,567,902 $1,191,986 $1,294,444 ---------- ---------- ---------- ---------- Interest on savings deposits $1,384,420 $1,422,399 $ 662,810 $ 736,648 Interest on borrowed money -- 88,410 -- 28,998 Interest on escrow deposits 648 998 260 322 ---------- ---------- ---------- ---------- Total interest expense $1,385,068 $1,511,087 $ 663,070 $ 765,968 Net interest income before provision for loan losses 1,033,997 1,056,095 528,916 528,476 Provision for loan losses 165 -- 165 -- ---------- ---------- ---------- ---------- Net interest income $1,033,832 $1,056,095 $ 528,751 $ 528,476 ---------- ---------- ---------- ---------- Other Income - ------------ Loan fees and service charges $ 54,674 $ 47,128 $ 25,346 $ 25,021 Gain on sales of loans receivable 24,098 -- 19,323 -- Other 21,275 6,438 12,159 4,336 ---------- ---------- ---------- ---------- Total other income $ 100,047 $ 53,566 $ 56,828 $ 29,357 ---------- ---------- ---------- ---------- Noninterest Expenses - -------------------- Salaries and employee benefits $ 483,004 $ 443,101 $ 229,829 $ 210,427 Occupancy costs 51,185 54,694 24,566 28,211 Professional services 33,036 33,808 20,307 18,481 Federal deposit insurance premiums 5,501 5,699 2,794 2,852 Furniture and fixtures depreciation and maintenance 20,499 22,969 9,508 11,250 Data processing 40,907 40,916 20,263 20,245 Advertising 15,319 37,506 8,540 15,455 Franchise and other taxes 19,172 22,020 6,683 10,554 Other 109,491 105,570 58,396 58,288 ---------- ---------- ---------- ---------- Total noninterest expenses $ 778,114 $ 766,283 $ 380,886 $ 375,763 Income before tax provision 355,765 343,378 204,693 182,070 Provision for income taxes 140,016 132,600 82,316 70,600 ---------- ---------- ---------- ---------- Net Income $ 215,749 $ 210,778 $ 122,377 $ 111,470 ---------- ---------- ---------- ---------- Basic net income per share $ 0.30 $ 0.29 $ 0.17 $ 0.15 Diluted net income per share $ 0.28 $ 0.27 $ 0.16 $ 0.15
See accompanying notes to financial statements. 3 Wyman Park Bancorporation, Inc. and Subsidiaries Lutherville, Maryland CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Six Months Ended December 31, ----------------------------- 2001 2000 ---- ---- Cash Flows from operating activities - ------------------------------------ Net income $ 215,749 $ 210,778 Adjustments to reconcile net income to net Cash provided by operating activities: Depreciation and amortization 19,572 20,723 Non-cash compensation under stock based benefit plan (3,022) -- Amortization of loan fees (32,301) (26,748) Provision for loan loss 165 Gain on sales of loans receivable (24,098) -- Loans originated for sale (1,310,350) -- Proceeds from loans originated for sale 1,334,448 -- Decease in accrued interest receivable 55,571 16,533 (Increase) decrease in prepaid expenses and other assets (18,082) 15,346 Increase in accrued expenses and other liabilities 118,835 111,667 Increase in federal and sate income taxes receivable (5,954) (319) Decrease in federal and state income taxes payable (17,562) (8,141) Increase (decrease) in accrued interest payable on savings deposits (3,867) 2,283 Increase in accrued interest payable on borrowings -- (11,896) ----------- ----------- Net cash provided by operating activities 329,104 330,226 Cash flows from investing activities - ------------------------------------ Increase in investments (2,509,778) -- Proceeds from sale of ground rents 2,500 -- Net decrease in loans receivable 4,107,162 345,277 Purchase of loan participations (1,652,351) (246,519) Mortgage-backed securities principal repayments 17,263 11,805 Purchases of property and equipment (11,209) (757) ----------- ----------- Net cash provided by (used in) investing activities (46,413) 109,806 Cash flows from financing activities - ------------------------------------ Net increase (decrease) in savings deposits (1,870,951) 2,796,679 Decrease in borrowings -- (2,500,000) Decrease in advance payments by borrowers for taxes, insurance and ground rents (688,019) (748,780) Repurchase of common stock -- (505,075) ----------- ----------- Net cash used in financing activities (2,558,970) (957,176) Net decrease in cash and cash equivalents $(2,276,279) $ (517,144) Cash and cash equivalents at beginning of period 4,432,017 2,085,906 ----------- ----------- Cash and cash equivalents at end of period $ 2,155,738 $ 1,568,762 ----------- ----------- Supplemental information - ------------------------ Interest paid on savings deposits and borrowed funds $ 1,385,069 $ 1,511,806 Income taxes paid $ 147,000 $ 141,060
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 six months ended December 31, 2001 are not necessarily indicative of the results that may be expected for the entire year. Certain prior year amounts have been reclassified to conform with the current year presentation. NOTE 3: CASH AND CASH EQUIVALENTS For the purposes of the statement of cash flows, the Company considers all highly liquid investments with maturities at date of purchase of three months or less to be cash equivalents. Cash equivalents consist of cash, non-interest bearing deposits, variable rate interest bearing deposits in other banks and federal funds sold. 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 six months ended December 31, 2001 and 2000 as follows: Three Months Ended Six Months Ended December 31, December 31, 2001 2000 2001 2000 ------------------- ------------------- Net income $122,377 $111,470 $215,749 $210,778 Weighted average shares Outstanding basic EPS 724,731 720,126 722,767 739,031 Dilutive items Stock options 49,328 26,025 44,450 27,096 Unvested stock awards 2,604 542 1,898 761 Adjusted weighted average shares Outstanding used for diluted EPS 776,663 746,693 769,115 766,888 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, 2001 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) $ 8,554,171 21.3% $3,217,833 8.0% $4,022,291 10.0% Tier I capital (to Risk Weighted Assets) 8,269,171 20.6% 1,608,892 4.0% 2,413,337 6.0% Tier 1 Capital (to Average Assets) 8,269,171 12.1% 2,735,890 4.0% 3,419,863 5.0%
6 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. 7 COMPARISON OF FINANCIAL CONDITION AT DECEMBER 31, 2001 AND JUNE 30, 2001 The Company's assets decreased $2.2 million or 3.1% to $68.4 million at December 31, 2001 from $70.6 million at June 30, 2001. Cash and cash equivalents decreased $2.2 million or 50.0% to $2.2 million at December 31, 2001 from $4.4 million at June 30, 2001, primarily as a result of an investment of $2.5 million in a cash management fund, thereby increasing investments to $2.5 million at December 31, 2001 from $0 at June 30, 2001. Net loans receivable decreased $2.4 million or 3.7% to $62.3 million at December 31, 2001 from $64.7 million at June 30, 2001 as a result of normal amortization and payoffs. Savings deposits decreased $1.9 million or 3.2% to $58.3 million at December 31, 2001 from $60.2 million at June 30, 2001. The Company believes the deposit decline is the result of customer reaction to reduced deposit rates, as the Company seeks to manage its net interest margin. Advance payments by borrowers for taxes, insurance and ground rents decreased $700,000 or 58.3% to $500,000 at December 31, 2001 from $1.2 million at June 30, 2001 as the result of the payment of real estate taxes. The Company's stockholders' equity increased $200,000 or 2.3% to $8.9 million at December 31, 2001 from $8.7 million at June 30, 2001 as a result of net income of $200,000 for the six months ended December 31, 2001. COMPARISON OF OPERATING RESULTS FOR THE QUARTER AND SIX MONTHS ENDED DECEMBER 31, 2001 AND DECEMBER 31, 2000 Net Income - ---------- The Company reported net income of $122,000 for the quarter ended December 31, 2001 compared to $111,000 for the quarter ended December 31, 2000. The $11,000 increase in net income was primarily due to an increase in other income of $28,000, offset by an increase in noninterest expense of $5,000 and an increase in provision for income taxes of $11,000. Net interest income remained basically unchanged as compared to the quarter ended December 31, 2000. The Company's net income for the six months ended December 31, 2001 was $216,000 compared to $211,000 for the six months ended December 31, 2000. The $5,000 increase in net income was primarily due to an increase in other income of $46,000, offset by a decrease in net interest income of $22,000, an increase in noninterest expense of $12,000 and an increase in provision for income taxes of $7,000. Interest Income - --------------- Total interest income decreased by $102,000 or 7.9% to $1,192,000 for the quarter ended December 31, 2001 from $1,294,000 for the quarter ended December 31, 2000. The decrease in total interest income for the comparable three months periods was due primarily to a decrease of 61 basis points in the average yield on interest-earning assets to 7.02% from 7.63%, as a result of declining interest rates. 8 Total interest income decreased by $149,000 or 5.8% to $2,419,000 for the six months ended December 31, 2001 from $2,568,000 for the six months ended December 31,2000. The decrease in total interest income for the comparable six months periods was due primarily to a decrease of 44 basis points in the average yield on interest-earning assets to 7.12% from 7.56%, as a result of declining interest rates. Interest Expense - ---------------- Total interest expense decreased by $103,000 or 13.4% to $663,000 for the quarter ended December 31, 2001 from $766,000 for the quarter ended December 31, 2000. The decrease in total interest expense for the comparable three months periods was due primarily to a decrease of $900,000 in the average balance of interest-bearing liabilities to $58.4 million from $59.3 million and a decrease of 63 basis points in the average yield on interest-bearing liabilities to 4.54% from 5.17%. The decrease in the average balance of interest-bearing liabilities was due to a decrease in average borrowings of $1.7 million for the three months comparable periods, partially offset by an increase of $800,000 in the average balance of savings deposits for the three months comparable periods. Total interest expense decreased by $126,000 or 8.3% of $1,385,000 for the six months ended December 31, 2001 from $1,511,000 for the six months ended December 31, 2000. The decrease in total interest expense for the comparable six months periods was due primarily to a decrease of $600,000 in the average balance of interest-bearing liabilities to $58.5 million from $59.1 million and a decrease of 38 basis points in the average yield on interest-bearing liabilities to 4.73% from 5.11%. The decrease in the average balance of interest-bearing liabilities was due to a decrease in average borrowings of $2.6 million for the six months comparable periods, partially offset by an increase of $2.0 million in the average balance of savings deposits for the six months comparable periods. Net Interest Income - ------------------- The Company's net interest income remained virtually unchanged at $529,000 for the quarter ended December 31, 2001 from the quarter ended December 31, 2000. This was the result of the decline in interest income being virtually the same as the decline in interest expense. This is reflected in the Company's net interest margin, which increased only 1 basis point to 3.12% from 3.11%. The Company's net interest income decreased $22,000 or 2.1% to $1,034,000 for the six months ended December 31, 2001 from $1,056,000 for the six months ended December 31, 2000. The decrease in net interest income was primarily due to a decline in interest income 9 in a greater amount than the decline in interest expense. This is reflected in the Company's net interest margin, which decreased 7 basis points to 3.04% from 3.11% for the comparable six month periods. 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 three months ended December 31, 2001, the Company recorded a provision for loan losses of $165. The Company's nonperforming loans as a percentage of loans receivable was 0.23% and 0.14% at December 31, 2001, and June 30, 2001, respectively, all consisting of single-family residential mortgage loans. Noninterest Income - ------------------ Total noninterest income increased by $28,000 or 96.6% to $57,000 for the quarter ended December 31, 2001 from $29,000 for the quarter ended December 31, 2000. The increase in noninterest income was due primarily to an increase of $19,000 in gain on sales of loans receivable for the quarter ended December 31, 2001 from $0 for the quarter ended December 31, 2000 and an increase of $8,000 in other income to $12,000 for the quarter ended December 31, 2001 from $4,000 for the quarter ended December 31, 2000 due to sales of annuities and miscellaneous fees. Total noninterest income increased by $46,000 or 85.2% to $100,000 for the six months ended December 31,2001 from $54,000 for the six months ended December 31, 2000. The increase in noninterest income was due primarily to an increase of $8,000 in service fees on checking accounts to $55,000 for the six months ended December 31, 2001 from $47,000 for the six months ended December 31, 2000, an increase of $24,000 in gain on sales of loans receivable to $24,000 for the six months ended December 31, 2001 from $0 for the six months ended December 31, 2000 and an increase of $15,000 in other income to $21,000 for the six months ended December 31, 2000 due to sales of annuities and miscellaneous fees. Noninterest Expenses - -------------------- Total noninterest expenses increased by $5,000 or 1.3% to $381,000 for the quarter ended December 31, 2001 from $376,000 for the quarter ended December 31, 2000. The increase in noninterest expenses was primarily due to an increase in salaries and employee benefits of $20,000 to $230,000 for the quarter ended December 31, 2001 from $210,000 for the quarter ended December 31, 2000, as a result of staff additions. 10 Total noninterest expenses increased by $12,000 or 1.6% to $778,000 for the six months ended December 31, 2001 from $766,000 for the six months ended December 31, 2000. The increase in noninterest expenses was primarily due to an increase in salaries and employee benefits of $40,000 to $483,000 for the six months ended December 31, 2001 from $443,000 for the six months ended December 31, 2000, partially offset by a decrease in advertising expense of $23,000 to $15,000 for the six months ended December 31, 2001 from $38,000 for the six months ended December 31, 2000. The increase in salaries and employee benefits was the result of staff additions and the decrease in advertising expense was due to the elimination of a billboard advertising campaign. 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 and in a short term liquid cash management fund. 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 $13.7 million in advances. The Company's most liquid assets are cash and cash equivalents, which include short-term investments, as well as an investment in a short-term, liquid cash management fund. The levels of these assets are dependent on the Company's operating, financing and investing activities during any given period. At December 31, 2001, the Company's cash on hand, interest bearing deposits, Federal funds sold and short-term investments totaled $4.7 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 $3.1 million as of December 31, 2001. The Company's principal sources of funds are deposits, loan repayments and other funds provided by operations. Certificates of deposit which are scheduled to mature in less than one year at December 31, 2001 totaled $22.1 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 source of cash in investing activities during the six months ended December 31, 2001 was a net decrease of $4.1 million in loans receivable, offset by a $1.6 million increase in loan participations. 11 The Company's primary uses of cash in financing activities during the six months ended December 31, 2001 consisted of a net decrease of $1.9 million in savings deposits and a net decrease of $700,000 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 (a) On October 17, 2001, 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 ------ --- -------- Allan B. Heaver 566,767 162,004 H. Douglas Huether 567,267 161,504 Jay H. Salkin 567,267 161,504 As a result, Allan B. Heaver, H. Douglas Huether and Jay H. Salkin were elected directors for terms to expire in 2004. There were no abstentions or broker non votes. ITEM 5. OTHER INFORMATION None ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits None (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: February 5, 2002 /s/ Ernest A. Moretti -------------------------------------------- Ernest A. Moretti President and Chief Executive Officer (Principal Executive Officer) Date: February 5, 2002 /s/ Ronald W. Robinson -------------------------------------------- Ronald W. Robinson Treasurer (Principal Financial and Accounting Officer) 14 -----END PRIVACY-ENHANCED MESSAGE-----