Wayne Savings Bancshares, Inc. Announces Earnings Increase

Apr 19, 2001, 01:00 ET from Wayne Savings Bancshares Inc.

    WOOSTER, Ohio, April 19 /PRNewswire/ -- Wayne Savings Bancshares, Inc.
 (Nasdaq:   WAYN), the stock holding company parent of Wayne Savings Community
 Bank, reported net earnings of $1.5 million, or $.56 per diluted share, for
 the full fiscal year ended March 31, 2001.  This represents a 17% increase
 over net earnings of $1.3 million, or $.48 per diluted share, reported in the
 prior fiscal year.
     Charles Finn, President, stated, "We are extremely pleased the Company was
 able to produce solid earnings growth in fiscal 2001 at a time when the levels
 of market interest rates created downward pressure on the net interest margin.
 The resulting reduction of $296,000 in net interest income was more than
 offset by a $306,000 increase in non-interest income, and operating expenses
 were lowered $285,000 through the implementation of an aggressive cost
 reduction program by the Company's management."
     With the recent series of interest rate reductions by the Federal Reserve
 System, Finn said a return to a more normal interest rate environment was
 expected, which should result in a continuing improvement in the net interest
 margin in the months ahead.  He further stated that the benefits of the cost
 containment program would remain in effect, which should also positively
 impact profitability.
     For the fourth quarter ended March 31, 2001, net earnings increased 36% to
 $410,000 or $.16 per diluted share, compared to $301,000 or $.11 per diluted
 share reported in the same quarter last year.  Again, the increase in
 quarterly net earnings was due to higher non-interest income and lower
 operating expenses, which more than offset a decrease in net interest income.
     Total assets of Wayne Savings Bancshares, Inc. on March 31, 2001 amounted
 to $312 million, up $8 million over total assets of $304 million reported a
 year ago.  Deposits grew $13 million, or 5%, in fiscal 2001 to a year-end
 total of $278 million.  According to Finn, the strong deposit growth evidences
 the value of the new branch locations opened in the past few years.  The
 Company's total deposits have grown $67 million, or 32%, in a three year
 period since the branching program was implemented.
     At March 31, 2001, stockholders' equity totaled $25.3 million,
 representing a tangible capital-to-assets ratio of 8.10%.  The capital ratio
 is well in excess of regulatory requirements.
     It was further reported that the Village Savings Bank, F.S.B. subsidiary,
 which was established in July, 1998 in North Canton, Ohio, achieved its first
 year of profitable operations.  In fiscal 2001, Village Savings Bank
 contributed $38,000 of net earnings to the bottom line of Wayne Savings
 Bancshares, Inc.  Finn said Village Savings Bank is expected to continually
 increase its profit contribution to Wayne Savings' stockholders in the years
 ahead.  As of March 31, 2001, Village Savings Bank reported assets of
 $28.3 million, deposits of $25.2 million, and net loans receivable of
 $20.7 million.
     According to Finn, Wayne Savings has maintained its high credit standards
 and the sound asset quality of its portfolio.  Total non-performing assets on
 March 31, 2001 amounted to only $656,000 or 0.21% of total assets, far below
 industry averages.
     In recognition of Wayne Savings financial strength and performance as a
 safe and sound community bank, Wayne Savings has received a five-star rating
 for 27 consecutive quarters by Bauer Financial Reports Inc., one of the
 nation's leading bank analysts.
     In continuing its market expansion strategy of recent years, Wayne Savings
 has announced it has filed an application with the State of Ohio to open a
 branch office in a new Buehler's supermarket currently under construction at
 Sugarbush Drive in Ashland, Ohio.  The full-service branch will be the first
 "In Store" office for Wayne Savings, and it will feature the traditional lobby
 service with three drive-through lanes and an ATM.  As the branch will be in
 leased quarters, there will be minimal investment in fixed assets.
     On March 29, 2001, Wayne Savings' Board of Directors declared a quarterly
 dividend of $.16 per share, which equates to an annual dividend of $.64 per
 share.  The quarterly cash dividend will be paid on April 26 to stockholders
 of record as of April 12.
     Wayne Savings Community Bank, the wholly owned subsidiary of Wayne Savings
 Bancshares, Inc., was established in downtown Wooster, Ohio in 1899.  The bank
 currently operates eight full-service offices in the four county market area
 of Wayne, Holmes, Ashland, and Medina counties, in addition to the Village
 Savings Bank, F.S.B. subsidiary in Stark County.
 
                         WAYNE SAVINGS BANCSHARES, INC.
                      CONSOLIDATED STATEMENTS OF CONDITION
                 (Dollars in thousands, except per share data)
 
                                                        March 31,     March 31,
                                                           2001         2000
                                                       (Unaudited)
     ASSETS
 
     Cash, cash equivalents, & investment securities     $40,247       $41,508
     Mortgage-backed securities, net (a)                   8,613        10,496
     Loans receivable, net                               247,480       237,412
     Federal Home Loan Bank stock                          3,510         3,160
     Office premises & equipment, net                      8,607         8,160
     Real estate acquired through foreclosure                124            90
     Other assets                                          3,441         3,442
               TOTAL ASSETS                             $312,022      $304,268
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Deposit accounts                                    277,707       264,952
     Advances from Federal Home Loan Bank                  6,000        12,000
     Advances by borrowers for taxes & insurance             827           777
     Accounts payable on mortgage loans serviced for others  234           100
     Other liabilities                                     1,981         1,318
               TOTAL LIABILITIES                         286,749       279,147
 
     Common stock 2,590,793 & 2,632,229 shares of
       $1.00 par value issued at March 31, 2001 and
       2000 respectively)                                  2,639         2,632
     Additional paid-in capital                           14,425        14,393
     Retained earnings                                     9,179         8,777
     Less: Treasury Stock (48,042 shares)                 (1,003)         (645)
     Unrealized gain (loss) on mortgage-backed
       securities available for sale                          33           (36)
               TOTAL STOCKHOLDERS' EQUITY                 25,273        25,121
 
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $312,022      $304,268
 
     (a) Includes available for sale classifications.
 
 
                           WAYNE SAVINGS BANCSHARES, INC.
                        CONSOLIDATED STATEMENTS OF EARNINGS
                               (Dollars in Thousands)
 
                                Three Months Ended     Twelve Months Ended
                                     March 31,              March 31,
                                   (unaudited)             (unaudited)
 
                                 2001        2000        2001        2000
 
     Interest income            $5,407      $5,333      $21,493     $20,701
     Interest expense            3,371       3,164       13,102      12,014
          Net interest income    2,036       2,169        8,391       8,687
     Provision for losses
       on loans                     21          38           96         120
          Net interest income
            after provision for
            loan losses          2,015       2,131        8,295       8,567
     Other income                  284         175        1,048         742
     General, administrative,
       and other expense         1,676       1,850        7,129       7,414
     Earnings before federal
       income taxes                623         456        2,214       1,895
     Federal income taxes          213         155          753         644
          Net earnings            $410        $301       $1,461      $1,251
 
 
 
                           WAYNE SAVINGS BANCSHARES, INC.
                         CONSOLIDATED FINANCIAL HIGHLIGHTS
                   (Dollars in thousands, except per share data)
 
                                                  For the Three Months
                                                      ended March 31,
                                                   2001           2000
                                               (unaudited)
 
     Quarterly Results
 
     Net Interest Income                          $2,036         $2,169
     Net Earnings                                    410            301
     Earnings Per Share
        Basic                                       0.16           0.11
        Diluted                                     0.16           0.11
     Return on Average Assets (Annualized)           .53%           .42%
 
 
                                                  For the Twelve Months
                                                      ended March 31,
                                                   2001           2000
                                               (unaudited)
     Annual Results
 
     Net Interest Income                          $8,391         $8,687
     Net Earnings                                  1,461          1,251
     Earnings Per Share
        Basic                                       0.56           0.48
        Diluted                                     0.56           0.48
     Return on Average Assets                        .47%           .43%
 
 
 
                                                 March 31,      March 31,
                                                   2001           2000
 
     End of Period Data
 
     Total Assets                               $312,022       $304,268
     Stockholders' Equity to Total Assets           8.10%          8.26%
 
 

SOURCE Wayne Savings Bancshares Inc.
    WOOSTER, Ohio, April 19 /PRNewswire/ -- Wayne Savings Bancshares, Inc.
 (Nasdaq:   WAYN), the stock holding company parent of Wayne Savings Community
 Bank, reported net earnings of $1.5 million, or $.56 per diluted share, for
 the full fiscal year ended March 31, 2001.  This represents a 17% increase
 over net earnings of $1.3 million, or $.48 per diluted share, reported in the
 prior fiscal year.
     Charles Finn, President, stated, "We are extremely pleased the Company was
 able to produce solid earnings growth in fiscal 2001 at a time when the levels
 of market interest rates created downward pressure on the net interest margin.
 The resulting reduction of $296,000 in net interest income was more than
 offset by a $306,000 increase in non-interest income, and operating expenses
 were lowered $285,000 through the implementation of an aggressive cost
 reduction program by the Company's management."
     With the recent series of interest rate reductions by the Federal Reserve
 System, Finn said a return to a more normal interest rate environment was
 expected, which should result in a continuing improvement in the net interest
 margin in the months ahead.  He further stated that the benefits of the cost
 containment program would remain in effect, which should also positively
 impact profitability.
     For the fourth quarter ended March 31, 2001, net earnings increased 36% to
 $410,000 or $.16 per diluted share, compared to $301,000 or $.11 per diluted
 share reported in the same quarter last year.  Again, the increase in
 quarterly net earnings was due to higher non-interest income and lower
 operating expenses, which more than offset a decrease in net interest income.
     Total assets of Wayne Savings Bancshares, Inc. on March 31, 2001 amounted
 to $312 million, up $8 million over total assets of $304 million reported a
 year ago.  Deposits grew $13 million, or 5%, in fiscal 2001 to a year-end
 total of $278 million.  According to Finn, the strong deposit growth evidences
 the value of the new branch locations opened in the past few years.  The
 Company's total deposits have grown $67 million, or 32%, in a three year
 period since the branching program was implemented.
     At March 31, 2001, stockholders' equity totaled $25.3 million,
 representing a tangible capital-to-assets ratio of 8.10%.  The capital ratio
 is well in excess of regulatory requirements.
     It was further reported that the Village Savings Bank, F.S.B. subsidiary,
 which was established in July, 1998 in North Canton, Ohio, achieved its first
 year of profitable operations.  In fiscal 2001, Village Savings Bank
 contributed $38,000 of net earnings to the bottom line of Wayne Savings
 Bancshares, Inc.  Finn said Village Savings Bank is expected to continually
 increase its profit contribution to Wayne Savings' stockholders in the years
 ahead.  As of March 31, 2001, Village Savings Bank reported assets of
 $28.3 million, deposits of $25.2 million, and net loans receivable of
 $20.7 million.
     According to Finn, Wayne Savings has maintained its high credit standards
 and the sound asset quality of its portfolio.  Total non-performing assets on
 March 31, 2001 amounted to only $656,000 or 0.21% of total assets, far below
 industry averages.
     In recognition of Wayne Savings financial strength and performance as a
 safe and sound community bank, Wayne Savings has received a five-star rating
 for 27 consecutive quarters by Bauer Financial Reports Inc., one of the
 nation's leading bank analysts.
     In continuing its market expansion strategy of recent years, Wayne Savings
 has announced it has filed an application with the State of Ohio to open a
 branch office in a new Buehler's supermarket currently under construction at
 Sugarbush Drive in Ashland, Ohio.  The full-service branch will be the first
 "In Store" office for Wayne Savings, and it will feature the traditional lobby
 service with three drive-through lanes and an ATM.  As the branch will be in
 leased quarters, there will be minimal investment in fixed assets.
     On March 29, 2001, Wayne Savings' Board of Directors declared a quarterly
 dividend of $.16 per share, which equates to an annual dividend of $.64 per
 share.  The quarterly cash dividend will be paid on April 26 to stockholders
 of record as of April 12.
     Wayne Savings Community Bank, the wholly owned subsidiary of Wayne Savings
 Bancshares, Inc., was established in downtown Wooster, Ohio in 1899.  The bank
 currently operates eight full-service offices in the four county market area
 of Wayne, Holmes, Ashland, and Medina counties, in addition to the Village
 Savings Bank, F.S.B. subsidiary in Stark County.
 
                         WAYNE SAVINGS BANCSHARES, INC.
                      CONSOLIDATED STATEMENTS OF CONDITION
                 (Dollars in thousands, except per share data)
 
                                                        March 31,     March 31,
                                                           2001         2000
                                                       (Unaudited)
     ASSETS
 
     Cash, cash equivalents, & investment securities     $40,247       $41,508
     Mortgage-backed securities, net (a)                   8,613        10,496
     Loans receivable, net                               247,480       237,412
     Federal Home Loan Bank stock                          3,510         3,160
     Office premises & equipment, net                      8,607         8,160
     Real estate acquired through foreclosure                124            90
     Other assets                                          3,441         3,442
               TOTAL ASSETS                             $312,022      $304,268
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Deposit accounts                                    277,707       264,952
     Advances from Federal Home Loan Bank                  6,000        12,000
     Advances by borrowers for taxes & insurance             827           777
     Accounts payable on mortgage loans serviced for others  234           100
     Other liabilities                                     1,981         1,318
               TOTAL LIABILITIES                         286,749       279,147
 
     Common stock 2,590,793 & 2,632,229 shares of
       $1.00 par value issued at March 31, 2001 and
       2000 respectively)                                  2,639         2,632
     Additional paid-in capital                           14,425        14,393
     Retained earnings                                     9,179         8,777
     Less: Treasury Stock (48,042 shares)                 (1,003)         (645)
     Unrealized gain (loss) on mortgage-backed
       securities available for sale                          33           (36)
               TOTAL STOCKHOLDERS' EQUITY                 25,273        25,121
 
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $312,022      $304,268
 
     (a) Includes available for sale classifications.
 
 
                           WAYNE SAVINGS BANCSHARES, INC.
                        CONSOLIDATED STATEMENTS OF EARNINGS
                               (Dollars in Thousands)
 
                                Three Months Ended     Twelve Months Ended
                                     March 31,              March 31,
                                   (unaudited)             (unaudited)
 
                                 2001        2000        2001        2000
 
     Interest income            $5,407      $5,333      $21,493     $20,701
     Interest expense            3,371       3,164       13,102      12,014
          Net interest income    2,036       2,169        8,391       8,687
     Provision for losses
       on loans                     21          38           96         120
          Net interest income
            after provision for
            loan losses          2,015       2,131        8,295       8,567
     Other income                  284         175        1,048         742
     General, administrative,
       and other expense         1,676       1,850        7,129       7,414
     Earnings before federal
       income taxes                623         456        2,214       1,895
     Federal income taxes          213         155          753         644
          Net earnings            $410        $301       $1,461      $1,251
 
 
 
                           WAYNE SAVINGS BANCSHARES, INC.
                         CONSOLIDATED FINANCIAL HIGHLIGHTS
                   (Dollars in thousands, except per share data)
 
                                                  For the Three Months
                                                      ended March 31,
                                                   2001           2000
                                               (unaudited)
 
     Quarterly Results
 
     Net Interest Income                          $2,036         $2,169
     Net Earnings                                    410            301
     Earnings Per Share
        Basic                                       0.16           0.11
        Diluted                                     0.16           0.11
     Return on Average Assets (Annualized)           .53%           .42%
 
 
                                                  For the Twelve Months
                                                      ended March 31,
                                                   2001           2000
                                               (unaudited)
     Annual Results
 
     Net Interest Income                          $8,391         $8,687
     Net Earnings                                  1,461          1,251
     Earnings Per Share
        Basic                                       0.56           0.48
        Diluted                                     0.56           0.48
     Return on Average Assets                        .47%           .43%
 
 
 
                                                 March 31,      March 31,
                                                   2001           2000
 
     End of Period Data
 
     Total Assets                               $312,022       $304,268
     Stockholders' Equity to Total Assets           8.10%          8.26%
 
 SOURCE  Wayne Savings Bancshares Inc.