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, 2002
_________ 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 15, 2002, the issuer had 822,490 shares of Common Stock issued and
outstanding.
Transitional Small Business Disclosure Format (check one):
Yes___ No X
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CONTENTS
--------
PART I. FINANCIAL INFORMATION PAGE
--------------------- ----
Item I. Financial Statements
Consolidated Statements of Financial Condition at
March 31, 2002 and June 30, 2001......................................2
Consolidated Statements of Operations for the Three Month and
Nine Month Periods ended March 31, 2002 and 2001.... .................3
Consolidated Statements of Cash Flows for the Nine Month
Periods Ended March 31, 2002 and 2001.................................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
March 31 June 30,
2002 2001
------------ ------------
(Unaudited)
Assets
------
Cash and noninterest bearing deposits $ 418,482 $ 882,696
Interest bearing deposits in other banks 526,988 93,680
Federal funds sold 1,144,494 3,455,641
------------ ------------
Total cash and cash equivalents 2,089,964 4,432,017
Investments 3,522,833 --
Loans receivable, net 62,030,841 64,712,777
Mortgage-backed securities held to maturity
at amortized cost, fair value of $117,608 (3/2002)
and $146,691 (6/2001) 116,390 145,796
Federal Home Loan Bank of Atlanta stock, at cost 528,900 528,900
Accrued interest receivable 318,000 345,969
Ground rents owned, at cost 120,100 122,600
Property and equipment, net 73,275 83,069
Federal and state income taxes receivable 1,209 6,237
Deferred tax asset 217,646 217,646
Prepaid expenses and other assets 923,577 53,596
------------ ------------
Total Assets $ 69,942,735 $ 70,648,607
------------ ------------
Liabilities & Stockholders'Equity
---------------------------------
Liabilities:
Demand deposits $ 5,731,279 $ 5,246,632
Money market and NOW accounts 10,128,079 9,454,074
Time deposits 43,563,072 45,481,277
------------ ------------
Total deposits 59,422,430 60,181,983
Advance payments by borrowers for taxes,
insurance and ground rents 814,926 1,196,077
Accrued interest payable on savings deposits 9,554 12,544
Federal and state income taxes payable 5,508 20,455
Accrued expenses and other liabilities 606,998 556,820
------------ ------------
Total liabilities 60,859,416 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 4,222,378 4,149,733
Contra equity - Employee Stock Ownership Plan (ESOP) (451,008) (451,008)
Retained earnings, substantially restricted 7,050,772 6,720,826
Treasury Stock; 189,223 shares at cost at
March 31, 2002 and June 30, 2001 (1,748,940) (1,748,940)
------------ ------------
Total stockholders' equity 9,083,318 8,680,728
------------ ------------
Total liabilities and stockholders' equity $ 69,942,735 $ 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 Nine Months For the Three Months
Ended March 31, Ended March 31,
2002 2001 2002 2001
---- ---- ---- ----
Interest and fees on loans receivable $3,441,500 $3,691,787 $1,108,095 $1,236,193
Interest on mortgage-backed securities 6,258 9,538 1,922 3,042
Interest on other investments 112,140 138,891 30,816 33,079
---------- ---------- ---------- ----------
Total interest income $3,559,898 $3,840,216 $1,140,833 $1,272,314
---------- ---------- ---------- ----------
Interest on savings deposits $1,953,782 $2,144,058 $ 569,362 $ 721,659
Interest on borrowed money -- 106,733 -- 18,323
Interest on escrow deposits 1,084 1,554 436 556
---------- ---------- ---------- ----------
Total interest expense $1,954,866 $2,252,345 $ 569,798 $ 740,538
Net interest income before provision
for loan losses 1,605,032 1,587,871 571,035 531,776
Provision for loan losses 165 -- -- --
---------- ---------- ---------- ----------
Net interest income $1,604,867 $1,587,871 $ 571,035 $ 531,776
---------- ---------- ---------- ----------
Other Income
- ------------
Loan fees and service charges $ 80,465 $ 78,572 $ 25,791 $ 31,444
Gain on sales of loans receivable 25,937 -- 1,839 --
Other 26,475 8,879 5,200 2,441
---------- ---------- ---------- ----------
Total other income $ 132,877 $ 87,451 $ 32,830 $ 33,885
---------- ---------- ---------- ----------
Noninterest Expenses
- --------------------
Salaries and employee benefits $ 723,923 $ 690,285 $ 240,919 $ 247,184
Occupancy costs 76,398 84,994 25,213 30,300
Professional services 55,549 47,730 22,513 13,922
Federal deposit insurance premiums 8,138 8,440 2,637 2,741
Furniture and fixtures depreciation and
maintenance 31,271 34,128 10,772 11,159
Data processing 62,829 62,510 21,922 21,594
Advertising 19,244 47,557 3,925 10,051
Franchise and other taxes 37,983 42,741 18,811 20,721
Other 177,447 153,628 67,956 48,058
---------- ---------- ---------- ----------
Total noninterest expenses $1,192,782 $1,172,013 $ 414,668 $ 405,730
Income before tax provision 544,962 503,309 189,197 159,931
Provision for income taxes 215,016 193,600 75,000 61,000
---------- ---------- ---------- ----------
Net Income $ 329,946 $ 309,709 $ 114,197 $ 98,931
---------- ---------- ---------- ----------
Basic net income per share $0.45 $0.42 $0.15 $0.14
Diluted net income per share $0.42 $0.41 $0.14 $0.13
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,
---------------------------
2002 2001
---- ----
Cash Flows from operating activities
- ------------------------------------
Net income $ 329,946 $ 309,709
Adjustments to reconcile net income to net
Cash provided by operating activities:
Depreciation and amortization 28,640 30,988
Non-cash compensation under stock based benefit plan 72,645 75,667
Amortization of loan fees (54,590) (37,691)
Provision for loan loss 165 --
Gain on sales of loans receivable (25,937) --
Loans originated for sale (1,462,750) --
Proceeds from loans originated for sale 1,488,687 --
Decease in accrued interest receivable 27,969 2,291
Increase in prepaid expenses and other assets (869,981) (4,058)
Increase in accrued expenses and other liabilities 50,178 50,967
(Increase) decrease in federal and sate income taxes receivable 5,028 (14,713)
Decrease in federal and state income taxes payable (14,947) (8,748)
Decrease in accrued interest payable on savings deposits (2,990) (3,813)
Increase in accrued interest payable on borrowings -- (10,007)
----------- -----------
Net cash provided by (used in) operating activities (427,937) 390,592
Cash flows from investing activities
- ------------------------------------
Purchase of investments (3,522,833) --
Proceeds from sale of ground rents 2,500 --
Net (increase) decrease in loans receivable 5,162,831 (71,412)
Purchase of loan participations (2,426,470) (330,459)
Mortgage-backed securities principal repayments 29,406 19,191
Purchase of FHLB of Atlanta Stock -- (20,400)
Purchases of property and equipment (18,846) (5,449)
----------- -----------
Net cash used in investing activities (773,412) (408,529)
Cash flows from financing activities
- ------------------------------------
Net increase (decrease) in savings deposits (759,553) 2,037,188
Decrease in borrowings -- (2,000,000)
Decrease in advance payments by borrowers
for taxes, insurance and ground rents (381,151) (417,624)
Repurchase of common stock -- (505,075)
----------- -----------
Net cash used in financing activities (1,140,704) (885,511)
Net decrease in cash and cash equivalents $(2,342,053) $ (903,448)
Cash and cash equivalents at beginning of period 4,432,017 2,085,906
----------- -----------
Cash and cash equivalents at end of period $ 2,089,964 $ 1,182,458
----------- -----------
Supplemental information
- ------------------------
Interest paid on savings deposits and borrowed funds $ 1,954,866 $ 2,252,344
Income taxes paid $ 197,000 $ 217,060
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 nine months ended
March 31, 2002 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 nine months ended March 31, 2002 and 2001
as follows:
Three Months Ended Six Months Ended
March 31, March 31,
2002 2001 2002 2001
-------------------- --------------------
Net income $114,197 $ 98,931 $329,946 $309,709
Weighted average shares
Outstanding basic EPS 742,057 710,598 729,104 729,692
Dilutive items
Stock options 66,540 32,417 53,133 28,777
Unvested stock awards 797 158 -- --
Adjusted weighted average shares
Outstanding used for diluted EPS 809,394 743,173 782,237 758,469
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, 2002
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) $8,743,920 20.9% $3,346,125 8.0% $4,182,657 10.0%
Tier I capital (to
Risk Weighted
Assets) 8,460,292 20.2% 1,673,063 4.0% 2,509,594 6.0%
Tier 1 Capital (to
Average Assets) 8,460,292 12.1% 2,797,343 4.0% 3,496,679 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 MARCH 31, 2002 AND JUNE 30, 2001
The Company's assets decreased $700,000 or 1.0% to $69.9 million at March 31,
2002 from $70.6 million at June 30, 2001. Cash and cash equivalents decreased
$2.3 million or 52.3% to $2.1 million at March 31, 2002 from $4.4 million at
June 30, 2001, primarily as a result of an increase in investments, offset by a
decrease in savings deposits and a decrease in advance payments by borrowers for
taxes, insurance and ground rents. Investments increased $3.5 million at March
31, 2002 from $0 at June 30, 2001, as a result of an investment of $3.5 million
in a cash management fund. Net loans receivable decreased $2.7 million or 4.2%
to $62.0 million at March 31, 2002 from $64.7 million at June 30, 2001 as a
result of normal amortization and payoffs. Prepaid expenses and other assets
increased $870,000 to $924,000 at March 31, 2002 from $54,000 at June 30, 2001
due to an increase in accounts receivable. This increase relates primarily to an
expected insurance company reimbursement to the Bank for an embezzlement
discovered by the Bank's senior management in January 2002. The Bank immediately
notified the appropriate federal law enforcement and bank regulatory agencies
and also commenced its own internal review with the assistance of a special
forensic accounting firm. As a result of the review, the Bank has instituted
additional controls to prevent a recurrence of this event. In addition, the Bank
immediately notified its insurer and submitted a timely claim and the Bank
anticipates being reimbursed for the entire amount of the embezzlement less the
$10,000 deductible and for the Bank's additional accounting expenses. No
depositor of the Bank suffered any loss as a result of this matter. Any
additional expenses incurred by the Bank as a result of this matter did not have
a material impact on net income. Savings deposits decreased $800,000 or 1.3% to
$59.4 million at March 31, 2002 from $60.2 million at June 30, 2001. The Company
believes the deposit decline is a 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 $400,000 or 33.3%
to $800,000 at March 31, 2002 from $1.2 million at June 30, 2001 as a result of
the payment of real estate taxes. The Company's stockholders' equity increased
$400,000 or 4.6% to $9.1 million at March 31, 2002 from $8.7 million at June 30,
2001 primarily due to net income of $300,000 for the nine months ended March 31,
2002.
COMPARISON OF OPERATING RESULTS FOR THE QUARTER AND NINE MONTHS ENDED MARCH 31,
2002 AND MARCH 31, 2001
Net Income
- ----------
The Company reported net income of $114,000 for the quarter ended March 31, 2002
compared to $99,000 for the quarter ended March 31, 2001. The $15,000 increase
in net income was primarily due to an increase in net interest income of
$39,000, offset by an increase in noninterest expense of $9,000 and an increase
in provision for income taxes of $14,000.
8
The Company's net income for the nine months ended March 31, 2002 was $330,000
compared to $310,000 for the nine months ended March 31, 2001. The $20,000
increase in net income was primarily due to an increase in net interest income
of $17,000 and an increase in other income of $46,000, offset by an increase in
noninterest expense of $21,000 and an increase in provision for income taxes of
$22,000.
Interest Income
- ---------------
Total interest income decreased by $131,000 or 10.3% to $1,141,000 for the
quarter ended March 31, 2002 from $1,272,000 for the quarter ended March 31,
2001. The decrease in total interest income for the comparable three months
periods was due primarily to a decrease of 74 basis points in the average yield
on interest-earning assets to 6.75% from 7.49%, as a result of declining
interest rates.
Total interest income decreased by $280,000 or 7.3% to $3,560,000 for the nine
months ended March 31, 2002 from $3,840,000 for the nine months ended March
31,2001. The decrease in total interest income for the comparable nine months
periods was due primarily to a decrease of 54 basis points in the average yield
on interest-earning assets to 7.00% from 7.54%, as a result of declining
interest rates.
Interest Expense
- ----------------
Total interest expense decreased by $171,000 or 23.1% to $570,000 for the
quarter ended March 31, 2002 from $741,000 for the quarter ended March 31, 2001.
The decrease in total interest expense for the comparable three months periods
was due primarily to a decrease of 116 basis points in the average yield on
interest-bearing liabilities to 3.89% from 5.05%.
Total interest expense decreased by $297,000 or 13.2% to $1,955,000 for the nine
months ended March 31, 2002 from $2,252,000 for the nine months ended March 31,
2001. The decrease in total interest expense for the comparable nine months
periods was due primarily to a decrease of 65 basis points in the average yield
on interest-bearing liabilities to 4.45% from 5.10%.
Net Interest Income
- -------------------
The Company's net interest income increased $39,000 or 7.3% to $571,000 for the
quarter ended March 31, 2002 from $532,000 for the quarter ended March 31, 2001.
The increase in net interest income was primarily due to a decline in the
average yield on interest bearing liabilities in a greater amount than the
decline in the average yield on interest earning assets. This is reflected in
the Company's net interest margin, which increased by 25 basis points to 3.38%
from 3.13% for the comparable three months periods.
9
The Company's net interest income increased $17,000 or 1.1% to $1,605,000 for
the nine months ended March 31, 2002 from $1,588,000 for the nine months ended
March 31, 2001. The increase in net interest income was primarily due to a
decline in the average yield on interest bearing liabilities in a greater amount
than the decline in the average yield on interest earning assets. This is
reflected in the Company's net interest margin, which increased by 3 basis
points to 3.15% from 3.12% for the comparable nine months 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 March
31, 2002, the Company recorded no provision for loan losses. During the nine
months ended March 31, 2002, the Company recorded a provision for loan losses of
$165. During the three months and nine months ended March 31, 2001, the Company
recorded no provision for loan losses. The Company's nonperforming loans as a
percentage of loans receivable was 0.29% and 0.14% at March 31, 2002, and June
30, 2001, respectively, all consisting of single-family residential mortgage
loans.
Noninterest Income
- ------------------
Total noninterest income remained virtually unchanged at $33,000 for the quarter
ended March 31, 2002 compared to $34,000 for the quarter ended March 31, 2001.
Total noninterest income increased by $46,000 or 52.9% to $133,000 for the nine
months ended March 31,2002 from $87,000 for the nine months ended March 31,
2001. The increase in noninterest income was due primarily to an increase of
$26,000 in gain on sales of loans receivable to $26,000 for the nine months
ended March 31, 2002 from $0 for the nine months ended March 31, 2001 and an
increase of $17,000 in other income to $26,000 for the nine months ended March
31, 2001 from $9,000 for the nine months ended March 31, 2001 due to sales of
annuities and miscellaneous fees.
Noninterest Expenses
- --------------------
Total noninterest expenses increased by $9,000 or 2.2% to $415,000 for the
quarter ended March 31, 2002 from $406,000 for the quarter ended March 31, 2001.
The increase in noninterest expenses was primarily due to an increase in other
non interest expense of $20,000 to $68,000 for the quarter ended March 31, 2002
from $48,000 for the quarter ended March 31, 2001, primarily due to an accrual
of the deductible of $10,000 on the Company's blanket bond in connection with
the pending insurance claim.
10
Total noninterest expenses increased by $21,000 or 1.8% to $1,193,000 for the
nine months ended March 31, 2002 from $1,172,000 for the nine months ended March
31, 2001. The increase in noninterest expenses was primarily due to an increase
in salaries and employee benefits of $33,000 to $723,000 for the nine months
ended March 31, 2002 from $690,000 for the nine months ended March 31, 2001 and
an increase in other non interest expense of $23,000 to $177,000 for the nine
months ended March 31, 2002 from $154,000 for the nine months ended March 31,
2001, partially offset by a decrease in advertising expense of $29,000 to
$19,000 for the nine months ended March 31, 2002 from $48,000 for the nine
months ended March 31, 2001. The increase in salaries and employee benefits was
the result of staff additions, the increase in other non interest expense was
primarily due to an accrual of the deductible on the Company's blanket bond 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 $14.0 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 March 31, 2002, the Company's cash on hand, interest
bearing deposits, Federal funds sold and short-term investments totaled $5.6
million. Management and the Board of Directors believe that the Company's
liquidity is adequate, including its ability to secure advances from the FHLB of
Atlanta, to satisfy its loan commitments of approximately $3.2 million as of
March 31, 2002.
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 March 31, 2002 totaled $20.9 million.
Historically, a high percentage of maturing deposits have remained with the
Company. While scheduled loan repayments are relatively predictable, deposit
flows and early loan prepayments are more influenced by interest rates, general
economic conditions, and competition. The Association maintains investments in
liquid assets based upon management's assessment of (1) need for funds, (2)
expected deposit flows, (3) yields available on short-term liquid assets and (4)
objectives of the asset/liability management program.
The Company's primary source of cash in investing activities during the nine
months ended March 31, 2002 was a net decrease of $5.2 million in loans
receivable, offset by a $2.4 million increase in loan participations.
11
The Company's primary uses of cash in financing activities during the nine
months ended March, 2002 consisted of a net decrease of $700,000 in savings
deposits and a net decrease of $400,000 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) 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: May 15, 2002 /s/ Ernest A. Moretti
------------------------------------
Ernest A. Moretti
President and Chief Executive Officer
(Principal Executive Officer)
Date: May 15, 2002 /s/ Ronald W. Robinson
-------------------------------------
Ronald W. Robinson
Treasurer
(Principal Financial and Accounting Officer)
14