Waypoint Financial Announces First Quarter Results And Regular Quarterly Dividend

Apr 19, 2001, 01:00 ET from Waypoint Financial Corp.

    HARRISBURG, Pa., April 19 /PRNewswire/ --
 Waypoint Financial Corp. (Nasdaq: WYPT) today announced financial results for
 the first quarter ended March 31, 2001.  Waypoint recorded net income of
 $8.6 million, or $.23 per share compared to net income of $6.3 million, or
 $.17 per share, for the quarter ended March 31, 2000.  This represents an
 increase of $.06 per share or 35.3%.  For the quarter ended December 31, 2000,
 Waypoint recorded a net loss of $.26 per share.  Excluding costs associated
 with the merger of Waypoint Financial Corp. (formerly Harris Financial) and
 York Financial Corp. and other non-recurring items, Waypoint recorded
 recurring earnings of $6.1 million or $.16 per share for the quarter ended
 December 31, 2000.
     Waypoint Financial also announced that the Board of Directors declared a
 regular quarterly cash dividend of $.085 per share to shareholders of record
 as of May 3, 2001.  The dividend will be paid on May 15, 2001.
     On October 17, 2000 Waypoint Financial Corp. (formerly Harris Financial)
 merged with York Financial Corp.  Waypoint Financial Corp. began trading on
 October 12, 2000.  All previously reported Waypoint Financial statements,
 including per share amounts, have been restated to reflect the merger as a
 pooling of interests.
     In commenting on the results, Charles C. Pearson, Co-Chairman and CEO,
 stated, "We are pleased with the progress we have made during the first full
 quarter operating the combined Waypoint Bank.  Waypoint's first quarter
 results reflected significant improvements in noninterest income and operating
 efficiencies.  In these two areas, Waypoint is off to an excellent start as
 evidenced by Waypoint's efficiency ratio which improved to 56.42% for the
 quarter ended March 31, 2001 versus 68.11% for the quarter ended March 31,
 2000.  We are clearly taking advantage of our excellent position as a full
 service, community-centered financial service provider in the Southcentral
 Pennsylvania and Northern Maryland markets."
     Net interest income increased $1.7 million or 7.1% to $25.5 million for
 the quarter ended March 31, 2001, from $23.8 million for the quarter ended
 March 31, 2000.  Net interest income included provision expense for loan
 losses of $1.6 million for the quarter ended March 31, 2001 versus
 $1.2 million for the quarter ended March 31, 2000.  Despite the increase in
 net interest income, the net interest margin ratio (tax-equivalent) decreased
 to 2.37% from 2.43% for the quarter ended March 31, 2000, although it
 increased from 2.33% for the quarter ended December 31, 2000.  During the
 quarter ended March 31, 2001 relative to the quarter ended March 31, 2000,
 Waypoint recorded an increase in net interest income (tax-equivalent) of
 $4.9 million due to volume changes and a decrease in net interest income of
 $2.6 million (tax-equivalent) due to rate changes.
     Noninterest income was $5.3 million for the quarter ended March 31, 2001,
 which represents an increase of $.7 million or 15.2% from $4.6 million for the
 quarter ended March 31, 2000.  During the quarter ended March 31, 2001, other
 service charges and fees (commercial services, brokerage services, trust fees,
 and insurance services) increased $.6 million to $1.6 million from
 $1.0 million for the quarter ended March 31, 2000.  Gains on sales of
 marketable securities increased $1.5 million to $.4 million during the quarter
 ended March 31, 2001 from a loss of $1.1 million during the prior comparable
 quarter.  These income increases were offset by a decrease of $1.5 million in
 gains on loan sales to $.1 million during the quarter ended March 31, 2001
 from $1.6 million during the quarter ended March 31, 2000.  Gains in the
 current quarter were impacted by settlement losses of $.6 million on
 derivative instruments related to mortgage loans.
     Noninterest expense was $18.3 million for the quarter ended March 31,
 2001, which represents a decrease of $1.9 million or 9.4% from $20.2 million
 for the quarter ended March 31, 2000.  The decrease relative to the prior
 comparable quarter came primarily in salaries and benefits, which decreased
 $.6 million or 6.1% to $9.3 million, occupancy expense which decreased
 $.4 million or 19.0% to $1.7 million, and expense from real estate operations,
 which reflected a net gain of $.8 million (from sales of branches and
 foreclosed real estate) versus expense of $.3 million in the prior comparable
 quarter.
 
     Financial Condition
     Waypoint's total assets grew $344 million, or 7.2%, to $5.102 billion at
 March 31, 2001 from $4.758 billion as of December 31, 2000.  Average assets
 were $4.859 billion for the quarter ended March 31, 2001, which represents an
 increase of $494 million or 11.3% from $4.365 billion for the quarter ended
 March 31, 2000.
     During the quarter ended March 31, 2001, average loans totaled
 $2.650 billion, which represents an increase of $154 million or 6.2% from
 $2.496 billion for the quarter ended March 31, 2000.  During the quarter ended
 March 31, 2001, average deposits and escrow totaled $2.572 billion, which
 represents an increase of $31 million or 1.2% from $2.541 billion for the
 quarter ended March 31, 2000.
     Average equity was $451.7 million for the quarter ended March 31, 2001,
 which represents an increase of $208.4 million or 85.7% from $243.3 million
 for the quarter ended March 31, 2000.  The quarter ended March 31, 2001
 included an increase in average equity from net proceeds of $155.6 million
 raised in Waypoint's stock offering effective October 17, 2000.  Waypoint's
 average equity also reflects primarily increases from retained earnings and
 increases in the market value of available-for-sale marketable securities (net
 of tax).
     Waypoint held $462.7 million in stockholders' equity, or 9.1% of total
 assets, at March 31, 2001, up from $445.6 million or 9.4% of total assets as
 of December 31, 2000. Book value per share was $11.95 at March 31, 2001 versus
 $11.49 per share as of December 31, 2000.  Equity increased $17.1 million
 during the quarter ended March 31, 2001.  Equity was increased by
 $11.0 million due to an increase in the market value of available-for-sale
 securities (net of taxes), by $8.6 million from net income, and by a net
 increase of $.8 million from stock option exercises and stock plan accruals.
 These increases were offset by dividends paid to shareholders totaling
 $3.3 million.
 
     Asset Quality
     Waypoint's loan charge-offs as a percentage of average loan outstandings
 totaled .07% (.28% on an annualized basis) for the quarter ended March 31,
 2001 as compared to 0.22% for the year 2000.  Total non-performing assets
 decreased to $24.5 million, or 0.48% of total assets, as of March 31, 2001
 from $27.1 million, or 0.57% of total assets, as of December 31, 2000.
 Waypoint's allowance for loan losses was 0.84% of loans as of March 31, 2001.
 
     In closing, Mr. Pearson expressed optimism that the Waypoint business plan
 of becoming a diversified modern financial services company is proceeding on
 schedule.
 
                         UNAUDITED FINANCIAL HIGHLIGHTS
 
                                                  For the Three Months Ended
                                                           March 31,
                                                       2001           2000
 
     Net income                                    $8,573,000     $6,346,000
     Diluted income per share                            $.23           $.17
     Return on average equity                           7.59%         10.43%
     Return on average assets                            .71%           .58%
     Net interest margin (tax equivalent)               2.37%          2.43%
     Noninterest income divided by average assets        .44%           .42%
     Noninterest expense divided by average assets      1.50%          1.85%
     Efficiency ratio                                  56.42%         68.11%
     Effective income tax rate                         31.53%         22.65%
 
                                                              As of
                                                     March 31,    December 31,
                                                       2001            2000
 
     Book value per share                              $11.95         $11.49
     Stockholders equity to total assets                9.07%          9.36%
 
     Waypoint Financial Corp. is the bank holding company for Waypoint Bank, a
 $5.1 billion bank headquartered in Harrisburg, Pennsylvania with a network of
 58 branches.  Waypoint Bank operates 50 branches in Dauphin, York, Lancaster,
 Cumberland, and Lebanon counties in southcentral Pennsylvania and 8 branches
 in Baltimore, Harford and Washington counties in northern Maryland.  Waypoint
 Financial Corp. was created in October, 2000 by the merger of Harris
 Financial, Inc. and York Financial Corp.
 
                   WAYPOINT FINANCIAL CORP. AND SUBSIDIARIES
                 Consolidated Statements of Financial Condition
 
                                                    March 31,    December 31,
                                                       2001           2000
                                                   (Unaudited)
                                                         (In thousands)
     Assets
     Cash and cash equivalents                        $81,897        $99,837
     Marketable securities held-to-maturity                 -         22,709
     Marketable securities available-for-sale       2,234,754      1,854,872
     Loans receivable, net                          2,605,098      2,591,527
     Loans held for sale, net                          20,435         18,415
     Loan servicing rights                              5,984          6,376
     Investment in real estate and other
      joint ventures                                   12,501         14,276
     Premises and equipment                            49,561         49,824
     Accrued interest receivable                       28,778         30,505
     Intangible assets                                 15,609         16,356
     Income taxes receivable                                -          2,335
     Deferred tax asset, net                              940          7,914
     Other assets                                      46,930         43,240
        Total assets                               $5,102,487     $4,758,186
 
     Liabilities and Stockholders' Equity
     Deposits                                      $2,537,741     $2,625,720
     Other borrowings                               1,883,770      1,625,329
     Escrow                                             7,251          6,461
     Accrued interest payable                          24,881         21,927
     Postretirement benefit obligation                  2,755          2,712
     Income taxes payable                               1,349              -
     Securities purchases in process                  155,816              -
     Other liabilities                                 26,186         30,469
        Total liabilities                           4,639,749      4,312,618
 
     Preferred stock, 10,000,000 shares authorized
      but unissued
     Common stock, $ .01 par value, authorized
      100,000,000 shares,
       39,228,880 shares issued and 38,951,431
       outstanding at March 31, 2001, 39,018,962 shares
       issued and 38,737,325 shares outstanding
       at December 31, 2000                               393            391
     Paid in capital                                  295,869        295,008
     Retained earnings                                194,983        189,745
     Accumulated other comprehensive income            (5,366)       (16,327)
     Employee stock ownership plan                    (16,305)       (16,365)
     Recognition and retention plans                     (444)          (427)
     Treasury stock, 277,449 shares at March 31, 2001
      and 281,637 shares at December 31, 2000          (6,392)        (6,457)
        Total stockholders' equity                    462,738        445,568
        Total liabilities and
         stockholders' equity                      $5,102,487     $4,758,186
 
 
                   WAYPOINT FINANCIAL CORP. AND SUBSIDIARIES
                       Consolidated Statements of Income
 
                                                  Three Months Ended March 31,
                                                      2001            2000
                                                          (Unaudited)
                                             (In thousands, except share data)
 
     Interest Income:
       Loans                                          $51,556        $46,452
       Marketable securities and interest-earning
        cash                                           33,607         29,440
         Total interest income                         85,163         75,892
     Interest Expense:
       Deposits and escrow                             29,577         27,660
       Borrowed funds                                  28,500         23,202
         Total interest expense                        58,077         50,862
         Net interest income                           27,086         25,030
     Provision for loan losses                          1,599          1,235
         Net interest income after provision for
          loan losses                                  25,487         23,795
     Noninterest Income:
       Service charges on deposits                      2,272          2,296
       Other service charges, commissions, fees         1,608          1,037
       Loan servicing income, net                         207            462
       Gain (loss) on securities                          415         (1,103)
       Gain on sales of loans                             119          1,623
       Other                                              688            250
         Total noninterest income                       5,309          4,565
     Noninterest Expense:
       Salaries and benefits                            9,312          9,907
       Equipment expense                                1,748          1,587
       Occupancy expense                                1,674          2,075
       Advertising and public relations                   744            840
       FDIC insurance                                     132            128
       Director fees                                      153            252
       Expense (income) from real estate operations      (829)           326
       Amortization of intangibles                        747            720
       Consulting and other fees                          608          1,343
       Supplies, telephone and postage                  1,820          1,345
       Other                                            2,167          1,633
         Total noninterest expense                     18,276         20,156
       Income before income taxes                      12,520          8,204
       Income tax expense                               3,947          1,858
         Net Income                                    $8,573         $6,346
 
       Basic earnings per share                         $0.23          $0.17
       Diluted earnings per share                       $0.23          $0.17
 
       Average equivalent shares - basic           37,369,000     38,225,000
       Average equivalent shares - diluted         37,685,000     38,428,000
 
 
      TABLE 1 - Average Balance Sheets - Quarter
       (all dollar amounts are in thousands)
 
                                               For the three months ended,
                                                      March 31, 2001
                                                                        Average
                                               Average       (A)(B)     (Yield/
                                               Balance      Interest     Cost)
 
     Assets:
     Interest-earning assets:
       Loans                                  $2,649,962     $51,766     7.81%
       Marketable securities - taxable         1,927,935      32,052     6.65%
       Marketable securities - taxfree            71,502       1,515     8.48%
       Other interest-earning assets              41,011         572     5.58%
     Total interest-earning assets             4,690,410      85,905     7.33%
     Noninterest-earning assets                  169,098
     Total Assets                             $4,859,508
     Liabilities and Stockholders' Equity:
     Interest-bearing liabilities:
       Savings deposits                         $210,860       1,470     2.79%
       Time deposits                           1,551,968      22,880     5.90%
       NOW and money market accounts             802,766       6,918     3.45%
       Escrow                                      6,707           9     0.54%
       Borrowed funds                          1,784,372      26,800     6.01%
     Total interest-bearing liabilities        4,356,673      58,077     5.33%
     Noninterest-bearing liabilities              51,121
     Total liabilities                         4,407,794
     Stockholders' equity                        451,714
     Total liabilities and
       stockholders' equity                   $4,859,508
 
     Net interest income                                     $27,828
     Interest rate spread (C)                                            2.00%
     Net interest-earning assets                $333,737
     Net interest margin (D)                                             2.37%
     Ratio of interest-earning assets
      to interest-bearing liabilities               1.08 X
 
 
      Average Balance Sheets - Quarter
      (all dollar amounts are in thousands)
 
                                               For the three months ended,
                                                      March 31, 2000
                                                                        Average
                                               Average       (A)(B)     (Yield/
                                               Balance      Interest     Cost)
 
     Assets:
     Interest-earning assets:
       Loans                                  $2,496,466     $46,403     7.43%
       Marketable securities - taxable         1,608,914      28,240     7.02%
       Marketable securities - taxfree            59,401       1,325     8.92%
       Other interest-earning assets              35,388         388     4.39%
     Total interest-earning assets             4,200,169      76,356     7.27%
     Noninterest-earning assets                  164,800
     Total Assets                             $4,364,969
     Liabilities and Stockholders' Equity:
     Interest-bearing liabilities:
       Savings deposits                         $169,446       1,089     2.57%
       Time deposits                           1,571,032      21,494     5.47%
       NOW and money market accounts             791,501       6,271     3.17%
       Escrow                                      9,327          16     0.69%
       Borrowed funds                          1,540,229      21,992     5.71%
     Total interest-bearing liabilities        4,081,535      50,862     4.98%
     Noninterest-bearing liabilities              40,146
     Total liabilities                         4,121,681
     Stockholders' equity                        243,288
     Total liabilities and
       stockholders' equity                   $4,364,969
 
     Net interest income                                     $25,494
     Interest rate spread (C)                                            2.29%
     Net interest-earning assets                $118,634
     Net interest margin (D)                                             2.43%
     Ratio of interest-earning assets
      to interest-bearing liabilities               1.03 X
 
 
     (A) (Expense) income recognized on deferred loan fees and costs of
         $(568,000) for the three months ended March 31, 2001, and $112,000 for
         the three months ended March 31, 1999.
     (B) Interest income and yields are shown on a tax equivalent basis using
         an effective tax rate of 35%.
     (C) Represents the difference between the average yield on interest-
         earning assets and the average cost on interest-bearing liabilities.
     (D) Represents the annualized net interest income before the provision for
         loan losses divided by average interest-earning assets.
 
      TABLE 2 - Rate/Volume Analysis of Changes in Tax-equivalent
       Net Interest Income
 
                                         Three Months Ended March 31, 2001
                                                    Compared to
                                         Three Months Ended March 31, 2000
                                                 Increase (Decrease)
 
                                         Volume          Rate           Net
                                             (Dollar amounts in thousands)
     Interest-earning assets:
       Loans, net                       $2,928          $2,435        $5,363
       Marketable securities - taxable   5,363          (1,551)        3,812
       Marketable securities - taxfree     258             (68)          190
       Other interest-earning assets        68             116           184
       Total interest-earning assets     8,617             932         9,549
 
     Interest-bearing liabilities:
       Savings deposits                    282              99           381
       Time deposits                      (266)          1,652         1,386
       NOW and money market deposits        90             557           647
       Escrow and stock subscriptions       (4)             (3)           (7)
       Borrowed funds                    3,611           1,197         4,808
       Total interest-bearing
        liabilities                      3,713           3,502         7,215
     Net change in interest income      $4,904         $(2,570)       $2,334
 
 
      TABLE 3 - Analysis of Allowance for Loan Losses
 
                                         As of or for the     As of or for the
                                        three months ended  twelve months ended
     Allowance for Loan Loss              March 31, 2001      December 31, 2000
                                                (Amounts in thousands)
 
     Balance at beginning of the period       $22,586            $23,127
     Pooling adjustment to conform
      accounting periods                            -                234
     Provision for loan losses                  1,599              5,070
 
     Charge Offs:
       Commercial loans                          (850)            (2,482)
       Residential mortgage loans                (121)            (1,168)
       Consumer loans                          (1,174)            (2,962)
        Total charge offs                      (2,145)            (6,612)
     Recoveries:
       Commercial loans                            27                 24
       Residential mortgage loans                  20                161
       Consumer loans                             132                582
        Total recoveries                          179                767
     Net Charge Offs                           (1,966)            (5,845)
 
     Balance at end of period                 $22,219            $22,586
 
     Net charge offs to average loans
      outstanding                                0.07%              0.22%
 
     Allowance for loan losses as a % of
      total loans                                0.84%              0.87%
 
     Allowance for loan losses to non-
      performing loans                          99.01%             97.45%
 
 
     TABLE 4 - Non-performing Assets
 
                                                   As of            As of
                                             March 31, 2001   December 31, 2000
                                                    (Amounts in thousands)
 
     Non-accrual mortgage loans                   $6,850            $5,092
     Non-accrual other loans                         573               604
          Total non-accrual loans                  7,423             5,696
     Loans 90 days or more delinquent and
      still accruing                              15,019            17,481
 
          Total non-performing loans              22,442            23,177
          Total foreclosed other assets              537               861
          Total foreclosed real estate             1,547             3,086
 
          Total non-performing assets            $24,526           $27,124
 
          Total non-performing loans to
           total loans                              0.85%             0.89%
 
          Total non-performing assets to
           total assets                             0.48%             0.57%
 
 
      TABLE 5 - Allocation of the Allowance for Loan Losses
 
                                            As of March 31,  As of December 31,
                                                  2001             2000
                                             (Dollar amounts are in thousands)
                                                      % of               % of
                                                      Total              Total
                                            Amount  Reserves   Amount  Reserves
     Residential mortgage loans              $2,319   10.44%   $2,165    9.59%
     Commercial loans                        13,712   61.71%   14,625   64.75%
     Consumer and other loans                 4,040   18.18%    4,178   18.50%
     Unallocated                              2,148    9.67%    1,618    7.16%
          Total                             $22,219  100.00%  $22,586  100.00%
 
     Statements contained in this news release, which are not historical facts,
 are forward-looking statements, as that term is defined in the Private
 Securities Litigation Reform Act of 1995.  Amounts herein could vary as a
 result of market and other factors.  Such forward-looking statements are
 subject to risks and uncertainties which could cause actual results to differ
 materially from those currently anticipated due to a number of factors, which
 include, but are not limited to, factors discussed in documents filed by the
 Corporation with the Securities and Exchange Commission from time to time.
 Such forward-looking statements may be identified by the use of such words as
 "believe", "expect", "anticipate", "should", "planned", "estimated", and
 "potential".  Examples of forward-looking statements include, but are not
 limited to, estimates with respect to the financial condition, expected or
 anticipated revenue, results of operations and business of the Corporation
 that are subject to various factors which could cause actual results to differ
 materially from these estimates.  These factors include, but are not limited
 to, general economic conditions, changes in interest rates, deposit flows,
 loan demand, real estate values, and competition; changes in accounting
 principles, policies, or guidelines; changes in legislation or regulation; and
 other economic, competitive, governmental, regulatory, and technological
 factors affecting the Corporation's operations, pricing, products and
 services.
 
 

SOURCE Waypoint Financial Corp.
    HARRISBURG, Pa., April 19 /PRNewswire/ --
 Waypoint Financial Corp. (Nasdaq: WYPT) today announced financial results for
 the first quarter ended March 31, 2001.  Waypoint recorded net income of
 $8.6 million, or $.23 per share compared to net income of $6.3 million, or
 $.17 per share, for the quarter ended March 31, 2000.  This represents an
 increase of $.06 per share or 35.3%.  For the quarter ended December 31, 2000,
 Waypoint recorded a net loss of $.26 per share.  Excluding costs associated
 with the merger of Waypoint Financial Corp. (formerly Harris Financial) and
 York Financial Corp. and other non-recurring items, Waypoint recorded
 recurring earnings of $6.1 million or $.16 per share for the quarter ended
 December 31, 2000.
     Waypoint Financial also announced that the Board of Directors declared a
 regular quarterly cash dividend of $.085 per share to shareholders of record
 as of May 3, 2001.  The dividend will be paid on May 15, 2001.
     On October 17, 2000 Waypoint Financial Corp. (formerly Harris Financial)
 merged with York Financial Corp.  Waypoint Financial Corp. began trading on
 October 12, 2000.  All previously reported Waypoint Financial statements,
 including per share amounts, have been restated to reflect the merger as a
 pooling of interests.
     In commenting on the results, Charles C. Pearson, Co-Chairman and CEO,
 stated, "We are pleased with the progress we have made during the first full
 quarter operating the combined Waypoint Bank.  Waypoint's first quarter
 results reflected significant improvements in noninterest income and operating
 efficiencies.  In these two areas, Waypoint is off to an excellent start as
 evidenced by Waypoint's efficiency ratio which improved to 56.42% for the
 quarter ended March 31, 2001 versus 68.11% for the quarter ended March 31,
 2000.  We are clearly taking advantage of our excellent position as a full
 service, community-centered financial service provider in the Southcentral
 Pennsylvania and Northern Maryland markets."
     Net interest income increased $1.7 million or 7.1% to $25.5 million for
 the quarter ended March 31, 2001, from $23.8 million for the quarter ended
 March 31, 2000.  Net interest income included provision expense for loan
 losses of $1.6 million for the quarter ended March 31, 2001 versus
 $1.2 million for the quarter ended March 31, 2000.  Despite the increase in
 net interest income, the net interest margin ratio (tax-equivalent) decreased
 to 2.37% from 2.43% for the quarter ended March 31, 2000, although it
 increased from 2.33% for the quarter ended December 31, 2000.  During the
 quarter ended March 31, 2001 relative to the quarter ended March 31, 2000,
 Waypoint recorded an increase in net interest income (tax-equivalent) of
 $4.9 million due to volume changes and a decrease in net interest income of
 $2.6 million (tax-equivalent) due to rate changes.
     Noninterest income was $5.3 million for the quarter ended March 31, 2001,
 which represents an increase of $.7 million or 15.2% from $4.6 million for the
 quarter ended March 31, 2000.  During the quarter ended March 31, 2001, other
 service charges and fees (commercial services, brokerage services, trust fees,
 and insurance services) increased $.6 million to $1.6 million from
 $1.0 million for the quarter ended March 31, 2000.  Gains on sales of
 marketable securities increased $1.5 million to $.4 million during the quarter
 ended March 31, 2001 from a loss of $1.1 million during the prior comparable
 quarter.  These income increases were offset by a decrease of $1.5 million in
 gains on loan sales to $.1 million during the quarter ended March 31, 2001
 from $1.6 million during the quarter ended March 31, 2000.  Gains in the
 current quarter were impacted by settlement losses of $.6 million on
 derivative instruments related to mortgage loans.
     Noninterest expense was $18.3 million for the quarter ended March 31,
 2001, which represents a decrease of $1.9 million or 9.4% from $20.2 million
 for the quarter ended March 31, 2000.  The decrease relative to the prior
 comparable quarter came primarily in salaries and benefits, which decreased
 $.6 million or 6.1% to $9.3 million, occupancy expense which decreased
 $.4 million or 19.0% to $1.7 million, and expense from real estate operations,
 which reflected a net gain of $.8 million (from sales of branches and
 foreclosed real estate) versus expense of $.3 million in the prior comparable
 quarter.
 
     Financial Condition
     Waypoint's total assets grew $344 million, or 7.2%, to $5.102 billion at
 March 31, 2001 from $4.758 billion as of December 31, 2000.  Average assets
 were $4.859 billion for the quarter ended March 31, 2001, which represents an
 increase of $494 million or 11.3% from $4.365 billion for the quarter ended
 March 31, 2000.
     During the quarter ended March 31, 2001, average loans totaled
 $2.650 billion, which represents an increase of $154 million or 6.2% from
 $2.496 billion for the quarter ended March 31, 2000.  During the quarter ended
 March 31, 2001, average deposits and escrow totaled $2.572 billion, which
 represents an increase of $31 million or 1.2% from $2.541 billion for the
 quarter ended March 31, 2000.
     Average equity was $451.7 million for the quarter ended March 31, 2001,
 which represents an increase of $208.4 million or 85.7% from $243.3 million
 for the quarter ended March 31, 2000.  The quarter ended March 31, 2001
 included an increase in average equity from net proceeds of $155.6 million
 raised in Waypoint's stock offering effective October 17, 2000.  Waypoint's
 average equity also reflects primarily increases from retained earnings and
 increases in the market value of available-for-sale marketable securities (net
 of tax).
     Waypoint held $462.7 million in stockholders' equity, or 9.1% of total
 assets, at March 31, 2001, up from $445.6 million or 9.4% of total assets as
 of December 31, 2000. Book value per share was $11.95 at March 31, 2001 versus
 $11.49 per share as of December 31, 2000.  Equity increased $17.1 million
 during the quarter ended March 31, 2001.  Equity was increased by
 $11.0 million due to an increase in the market value of available-for-sale
 securities (net of taxes), by $8.6 million from net income, and by a net
 increase of $.8 million from stock option exercises and stock plan accruals.
 These increases were offset by dividends paid to shareholders totaling
 $3.3 million.
 
     Asset Quality
     Waypoint's loan charge-offs as a percentage of average loan outstandings
 totaled .07% (.28% on an annualized basis) for the quarter ended March 31,
 2001 as compared to 0.22% for the year 2000.  Total non-performing assets
 decreased to $24.5 million, or 0.48% of total assets, as of March 31, 2001
 from $27.1 million, or 0.57% of total assets, as of December 31, 2000.
 Waypoint's allowance for loan losses was 0.84% of loans as of March 31, 2001.
 
     In closing, Mr. Pearson expressed optimism that the Waypoint business plan
 of becoming a diversified modern financial services company is proceeding on
 schedule.
 
                         UNAUDITED FINANCIAL HIGHLIGHTS
 
                                                  For the Three Months Ended
                                                           March 31,
                                                       2001           2000
 
     Net income                                    $8,573,000     $6,346,000
     Diluted income per share                            $.23           $.17
     Return on average equity                           7.59%         10.43%
     Return on average assets                            .71%           .58%
     Net interest margin (tax equivalent)               2.37%          2.43%
     Noninterest income divided by average assets        .44%           .42%
     Noninterest expense divided by average assets      1.50%          1.85%
     Efficiency ratio                                  56.42%         68.11%
     Effective income tax rate                         31.53%         22.65%
 
                                                              As of
                                                     March 31,    December 31,
                                                       2001            2000
 
     Book value per share                              $11.95         $11.49
     Stockholders equity to total assets                9.07%          9.36%
 
     Waypoint Financial Corp. is the bank holding company for Waypoint Bank, a
 $5.1 billion bank headquartered in Harrisburg, Pennsylvania with a network of
 58 branches.  Waypoint Bank operates 50 branches in Dauphin, York, Lancaster,
 Cumberland, and Lebanon counties in southcentral Pennsylvania and 8 branches
 in Baltimore, Harford and Washington counties in northern Maryland.  Waypoint
 Financial Corp. was created in October, 2000 by the merger of Harris
 Financial, Inc. and York Financial Corp.
 
                   WAYPOINT FINANCIAL CORP. AND SUBSIDIARIES
                 Consolidated Statements of Financial Condition
 
                                                    March 31,    December 31,
                                                       2001           2000
                                                   (Unaudited)
                                                         (In thousands)
     Assets
     Cash and cash equivalents                        $81,897        $99,837
     Marketable securities held-to-maturity                 -         22,709
     Marketable securities available-for-sale       2,234,754      1,854,872
     Loans receivable, net                          2,605,098      2,591,527
     Loans held for sale, net                          20,435         18,415
     Loan servicing rights                              5,984          6,376
     Investment in real estate and other
      joint ventures                                   12,501         14,276
     Premises and equipment                            49,561         49,824
     Accrued interest receivable                       28,778         30,505
     Intangible assets                                 15,609         16,356
     Income taxes receivable                                -          2,335
     Deferred tax asset, net                              940          7,914
     Other assets                                      46,930         43,240
        Total assets                               $5,102,487     $4,758,186
 
     Liabilities and Stockholders' Equity
     Deposits                                      $2,537,741     $2,625,720
     Other borrowings                               1,883,770      1,625,329
     Escrow                                             7,251          6,461
     Accrued interest payable                          24,881         21,927
     Postretirement benefit obligation                  2,755          2,712
     Income taxes payable                               1,349              -
     Securities purchases in process                  155,816              -
     Other liabilities                                 26,186         30,469
        Total liabilities                           4,639,749      4,312,618
 
     Preferred stock, 10,000,000 shares authorized
      but unissued
     Common stock, $ .01 par value, authorized
      100,000,000 shares,
       39,228,880 shares issued and 38,951,431
       outstanding at March 31, 2001, 39,018,962 shares
       issued and 38,737,325 shares outstanding
       at December 31, 2000                               393            391
     Paid in capital                                  295,869        295,008
     Retained earnings                                194,983        189,745
     Accumulated other comprehensive income            (5,366)       (16,327)
     Employee stock ownership plan                    (16,305)       (16,365)
     Recognition and retention plans                     (444)          (427)
     Treasury stock, 277,449 shares at March 31, 2001
      and 281,637 shares at December 31, 2000          (6,392)        (6,457)
        Total stockholders' equity                    462,738        445,568
        Total liabilities and
         stockholders' equity                      $5,102,487     $4,758,186
 
 
                   WAYPOINT FINANCIAL CORP. AND SUBSIDIARIES
                       Consolidated Statements of Income
 
                                                  Three Months Ended March 31,
                                                      2001            2000
                                                          (Unaudited)
                                             (In thousands, except share data)
 
     Interest Income:
       Loans                                          $51,556        $46,452
       Marketable securities and interest-earning
        cash                                           33,607         29,440
         Total interest income                         85,163         75,892
     Interest Expense:
       Deposits and escrow                             29,577         27,660
       Borrowed funds                                  28,500         23,202
         Total interest expense                        58,077         50,862
         Net interest income                           27,086         25,030
     Provision for loan losses                          1,599          1,235
         Net interest income after provision for
          loan losses                                  25,487         23,795
     Noninterest Income:
       Service charges on deposits                      2,272          2,296
       Other service charges, commissions, fees         1,608          1,037
       Loan servicing income, net                         207            462
       Gain (loss) on securities                          415         (1,103)
       Gain on sales of loans                             119          1,623
       Other                                              688            250
         Total noninterest income                       5,309          4,565
     Noninterest Expense:
       Salaries and benefits                            9,312          9,907
       Equipment expense                                1,748          1,587
       Occupancy expense                                1,674          2,075
       Advertising and public relations                   744            840
       FDIC insurance                                     132            128
       Director fees                                      153            252
       Expense (income) from real estate operations      (829)           326
       Amortization of intangibles                        747            720
       Consulting and other fees                          608          1,343
       Supplies, telephone and postage                  1,820          1,345
       Other                                            2,167          1,633
         Total noninterest expense                     18,276         20,156
       Income before income taxes                      12,520          8,204
       Income tax expense                               3,947          1,858
         Net Income                                    $8,573         $6,346
 
       Basic earnings per share                         $0.23          $0.17
       Diluted earnings per share                       $0.23          $0.17
 
       Average equivalent shares - basic           37,369,000     38,225,000
       Average equivalent shares - diluted         37,685,000     38,428,000
 
 
      TABLE 1 - Average Balance Sheets - Quarter
       (all dollar amounts are in thousands)
 
                                               For the three months ended,
                                                      March 31, 2001
                                                                        Average
                                               Average       (A)(B)     (Yield/
                                               Balance      Interest     Cost)
 
     Assets:
     Interest-earning assets:
       Loans                                  $2,649,962     $51,766     7.81%
       Marketable securities - taxable         1,927,935      32,052     6.65%
       Marketable securities - taxfree            71,502       1,515     8.48%
       Other interest-earning assets              41,011         572     5.58%
     Total interest-earning assets             4,690,410      85,905     7.33%
     Noninterest-earning assets                  169,098
     Total Assets                             $4,859,508
     Liabilities and Stockholders' Equity:
     Interest-bearing liabilities:
       Savings deposits                         $210,860       1,470     2.79%
       Time deposits                           1,551,968      22,880     5.90%
       NOW and money market accounts             802,766       6,918     3.45%
       Escrow                                      6,707           9     0.54%
       Borrowed funds                          1,784,372      26,800     6.01%
     Total interest-bearing liabilities        4,356,673      58,077     5.33%
     Noninterest-bearing liabilities              51,121
     Total liabilities                         4,407,794
     Stockholders' equity                        451,714
     Total liabilities and
       stockholders' equity                   $4,859,508
 
     Net interest income                                     $27,828
     Interest rate spread (C)                                            2.00%
     Net interest-earning assets                $333,737
     Net interest margin (D)                                             2.37%
     Ratio of interest-earning assets
      to interest-bearing liabilities               1.08 X
 
 
      Average Balance Sheets - Quarter
      (all dollar amounts are in thousands)
 
                                               For the three months ended,
                                                      March 31, 2000
                                                                        Average
                                               Average       (A)(B)     (Yield/
                                               Balance      Interest     Cost)
 
     Assets:
     Interest-earning assets:
       Loans                                  $2,496,466     $46,403     7.43%
       Marketable securities - taxable         1,608,914      28,240     7.02%
       Marketable securities - taxfree            59,401       1,325     8.92%
       Other interest-earning assets              35,388         388     4.39%
     Total interest-earning assets             4,200,169      76,356     7.27%
     Noninterest-earning assets                  164,800
     Total Assets                             $4,364,969
     Liabilities and Stockholders' Equity:
     Interest-bearing liabilities:
       Savings deposits                         $169,446       1,089     2.57%
       Time deposits                           1,571,032      21,494     5.47%
       NOW and money market accounts             791,501       6,271     3.17%
       Escrow                                      9,327          16     0.69%
       Borrowed funds                          1,540,229      21,992     5.71%
     Total interest-bearing liabilities        4,081,535      50,862     4.98%
     Noninterest-bearing liabilities              40,146
     Total liabilities                         4,121,681
     Stockholders' equity                        243,288
     Total liabilities and
       stockholders' equity                   $4,364,969
 
     Net interest income                                     $25,494
     Interest rate spread (C)                                            2.29%
     Net interest-earning assets                $118,634
     Net interest margin (D)                                             2.43%
     Ratio of interest-earning assets
      to interest-bearing liabilities               1.03 X
 
 
     (A) (Expense) income recognized on deferred loan fees and costs of
         $(568,000) for the three months ended March 31, 2001, and $112,000 for
         the three months ended March 31, 1999.
     (B) Interest income and yields are shown on a tax equivalent basis using
         an effective tax rate of 35%.
     (C) Represents the difference between the average yield on interest-
         earning assets and the average cost on interest-bearing liabilities.
     (D) Represents the annualized net interest income before the provision for
         loan losses divided by average interest-earning assets.
 
      TABLE 2 - Rate/Volume Analysis of Changes in Tax-equivalent
       Net Interest Income
 
                                         Three Months Ended March 31, 2001
                                                    Compared to
                                         Three Months Ended March 31, 2000
                                                 Increase (Decrease)
 
                                         Volume          Rate           Net
                                             (Dollar amounts in thousands)
     Interest-earning assets:
       Loans, net                       $2,928          $2,435        $5,363
       Marketable securities - taxable   5,363          (1,551)        3,812
       Marketable securities - taxfree     258             (68)          190
       Other interest-earning assets        68             116           184
       Total interest-earning assets     8,617             932         9,549
 
     Interest-bearing liabilities:
       Savings deposits                    282              99           381
       Time deposits                      (266)          1,652         1,386
       NOW and money market deposits        90             557           647
       Escrow and stock subscriptions       (4)             (3)           (7)
       Borrowed funds                    3,611           1,197         4,808
       Total interest-bearing
        liabilities                      3,713           3,502         7,215
     Net change in interest income      $4,904         $(2,570)       $2,334
 
 
      TABLE 3 - Analysis of Allowance for Loan Losses
 
                                         As of or for the     As of or for the
                                        three months ended  twelve months ended
     Allowance for Loan Loss              March 31, 2001      December 31, 2000
                                                (Amounts in thousands)
 
     Balance at beginning of the period       $22,586            $23,127
     Pooling adjustment to conform
      accounting periods                            -                234
     Provision for loan losses                  1,599              5,070
 
     Charge Offs:
       Commercial loans                          (850)            (2,482)
       Residential mortgage loans                (121)            (1,168)
       Consumer loans                          (1,174)            (2,962)
        Total charge offs                      (2,145)            (6,612)
     Recoveries:
       Commercial loans                            27                 24
       Residential mortgage loans                  20                161
       Consumer loans                             132                582
        Total recoveries                          179                767
     Net Charge Offs                           (1,966)            (5,845)
 
     Balance at end of period                 $22,219            $22,586
 
     Net charge offs to average loans
      outstanding                                0.07%              0.22%
 
     Allowance for loan losses as a % of
      total loans                                0.84%              0.87%
 
     Allowance for loan losses to non-
      performing loans                          99.01%             97.45%
 
 
     TABLE 4 - Non-performing Assets
 
                                                   As of            As of
                                             March 31, 2001   December 31, 2000
                                                    (Amounts in thousands)
 
     Non-accrual mortgage loans                   $6,850            $5,092
     Non-accrual other loans                         573               604
          Total non-accrual loans                  7,423             5,696
     Loans 90 days or more delinquent and
      still accruing                              15,019            17,481
 
          Total non-performing loans              22,442            23,177
          Total foreclosed other assets              537               861
          Total foreclosed real estate             1,547             3,086
 
          Total non-performing assets            $24,526           $27,124
 
          Total non-performing loans to
           total loans                              0.85%             0.89%
 
          Total non-performing assets to
           total assets                             0.48%             0.57%
 
 
      TABLE 5 - Allocation of the Allowance for Loan Losses
 
                                            As of March 31,  As of December 31,
                                                  2001             2000
                                             (Dollar amounts are in thousands)
                                                      % of               % of
                                                      Total              Total
                                            Amount  Reserves   Amount  Reserves
     Residential mortgage loans              $2,319   10.44%   $2,165    9.59%
     Commercial loans                        13,712   61.71%   14,625   64.75%
     Consumer and other loans                 4,040   18.18%    4,178   18.50%
     Unallocated                              2,148    9.67%    1,618    7.16%
          Total                             $22,219  100.00%  $22,586  100.00%
 
     Statements contained in this news release, which are not historical facts,
 are forward-looking statements, as that term is defined in the Private
 Securities Litigation Reform Act of 1995.  Amounts herein could vary as a
 result of market and other factors.  Such forward-looking statements are
 subject to risks and uncertainties which could cause actual results to differ
 materially from those currently anticipated due to a number of factors, which
 include, but are not limited to, factors discussed in documents filed by the
 Corporation with the Securities and Exchange Commission from time to time.
 Such forward-looking statements may be identified by the use of such words as
 "believe", "expect", "anticipate", "should", "planned", "estimated", and
 "potential".  Examples of forward-looking statements include, but are not
 limited to, estimates with respect to the financial condition, expected or
 anticipated revenue, results of operations and business of the Corporation
 that are subject to various factors which could cause actual results to differ
 materially from these estimates.  These factors include, but are not limited
 to, general economic conditions, changes in interest rates, deposit flows,
 loan demand, real estate values, and competition; changes in accounting
 principles, policies, or guidelines; changes in legislation or regulation; and
 other economic, competitive, governmental, regulatory, and technological
 factors affecting the Corporation's operations, pricing, products and
 services.
 
 SOURCE  Waypoint Financial Corp.