EXHIBIT 99
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WAYNE SAVINGS BANCSHARES, INC.
ANNOUNCES QUARTERLY EARNINGS
| NEWS RELEASE
NASDAQ SYMBOL: WAYN
RELEASE DATE: November 2, 2004
CONTACT PERSONS: CHARLES F. FINN
CHAIRMAN AND CEO
MICHAEL C. ANDERSON CFO
(330) 264-5767 |
FOR IMMEDIATE RELEASE
WOOSTER, OHIO—Wayne Savings Bancshares, Inc. (NASDAQ: WAYN), the stock holding company parent of Wayne Savings Community Bank, reported net earnings of $489,000 or $.13 per diluted share for the quarter ended September 30, 2004, compared to net earnings of $613,000 or $.16 per diluted share for the quarter ended September 30, 2003.
Net interest income increased $67,000 to a total of $2.7 million in the quarter ended September 30, 2004 compared to the same quarter last year, and other income increased $14,000 to a total of $493,000. Net interest income includes the addition of Stebbins National Bank net interest income for the quarter ended September 30, 2004. The increase in net interest income and other income in the 2004 quarter were more than offset by a $309,000 increase in general, administrative and other expense. The expense increases were mainly due to higher franchise taxes from the full stock conversion completed in 2003, increases in occupancy and equipment expense from the conversion to a new computer operating system in May 2004 and higher employee compensation from normal merit increases and increased benefit plan costs, which includes the effect of the Stebbins National Bank acquisition completed on June 1, 2004.
For the six month period ended September 30, 2004, net earnings totaled $951,000, or $.26 per diluted share, compared to net earnings of $1,344,000 or $.36 per diluted share for the six months ended September 30, 2003. The decrease in net earnings was primarily attributable to a decrease in net interest income of $105,000, mainly due to the Company’s current strategy of keeping assets with a shorter average life to protect its interest rate risk position. Net interest income includes the addition of Stebbins National Bank net interest income for the six months ended September 30, 2004. Other income decreased $91,000 and general, administrative and other expense increased $466,000. The overall expense increase in the six month period was again related mainly to franchise tax expense, occupancy and equipment expense from the data processing conversion, and increases in compensation and benefits expense which includes the effect of the Stebbins National Bank acquisition.
According to Charles Finn, Chairman and CEO, the Company has maintained its strategy of aggressively managing interest rate risk by shortening investment maturities rather than reaching for higher yields through extended maturities. Finn said, “This strategy has negatively affected earnings for the first six months of this fiscal year, but management believes the Company is well-positioned to take advantage of a rising interest rate environment.”
At September 30, 2004, Wayne Savings Bancshares, Inc. reported total assets of $381.5 million, total deposits of $311.9 million, and stockholders’ equity of $41.9 million, resulting in a capital-to-assets ratio of 10.97%.
Established in 1899, Wayne Savings Community Bank, the wholly-owned subsidiary of Wayne Savings Bancshares, Inc., has eleven full-service banking locations in Wayne, Holmes, Ashland, Medina, and Stark counties, Ohio.
WAYNE SAVINGS BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands, except per share data)
| September 30, 2004
| | March 31, 2004
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| (Unaudited) | | |
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| ASSETS | | | | | | | | |
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| Cash, cash equivalents, & investment securities | | | $ | 71,288 | | $ | 51,469 | |
| Mortgage-backed securities, net (1) | | | | 69,785 | | | 88,428 | |
| Loans receivable, net (1) | | | | 213,757 | | | 205,443 | |
| Federal Home Loan Bank stock | | | | 4,292 | | | 4,205 | |
| Office premises & equipment, net | | | | 9,171 | | | 8,742 | |
| Real estate acquired through foreclosure | | | | 141 | | | 100 | |
| Other assets | | | | 13,084 | | | 10,620 | |
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| TOTAL ASSETS | | | $ | 381,518 | | $ | 369,007 | |
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| LIABILITIES AND STOCKHOLDERS' EQUITY | | |
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| Deposit accounts | | | $ | 311,910 | | $ | 291,830 | |
| Advances from Federal Home Loan Bank | | | | 25,000 | | | 30,000 | |
| Advances by borrowers for taxes & insurance | | | | 565 | | | 617 | |
| Accounts payable on mortgage loans serviced for others | | | | 40 | | | 118 | |
| Other liabilities | | | | 2,148 | | | 2,881 | |
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| TOTAL LIABILITIES | | | | 339,663 | | | 325,446 | |
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| Common stock (3,907,318 shares of $.10 par value issued at both | | |
| September 30, 2004 and March 31, 2004 respectively) | | | | 391 | | | 391 | |
| Additional paid-in capital | | | | 34,377 | | | 34,365 | |
| Retained earnings | | | | 12,799 | | | 12,727 | |
| Less required contributions for shares acquired by Employee Stock Ownership Plan | | | | (1,380 | ) | | (1,456 | ) |
| Shares acquired by Management Recognition Plan | | | | (913 | ) | | (1,142 | ) |
| Less Treasury Stock | | | | (3,565 | ) | | (1,803 | ) |
| Accumulated other comprehensive income | | | | 146 | | | 479 | |
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| TOTAL STOCKHOLDERS' EQUITY | | | | 41,855 | | | 43,561 | |
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| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | | | $ | 381,518 | | $ | 369,007 | |
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(1) Includes available for sale classifications.
CONSOLIDATED STATEMENTS OF EARNINGS
(Dollars in Thousands)
| Three Months Ended
September 30, | | Six Months Ended
September 30, |
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| 2004
unaudited | | 2003
| | 2004
unaudited | | 2003
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| Interest income | | | $ | 4,381 | | $ | 4,501 | | $ | 8,625 | | $ | 9,224 | |
| Interest expense | | | | 1,609 | | | 1,796 | | | 3,234 | | | 3,728 | |
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| Net interest income | | | | 2,772 | | | 2,705 | | | 5,391 | | | 5,496 | |
| Provision for losses on loans | | | | 15 | | | 31 | | | 30 | | | 63 | |
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| Net interest income after provision for losses on loans | | | | 2,757 | | | 2,674 | | | 5,361 | | | 5,433 | |
| Other income | | | | 493 | | | 479 | | | 898 | | | 989 | |
| General, administrative, and other expense | | | | 2,580 | | | 2,271 | | | 4,949 | | | 4,483 | |
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| Earnings before federal income taxes | | | | 670 | | | 882 | | | 1,310 | | | 1,939 | |
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| Federal income taxes | | | | 181 | | | 269 | | | 359 | | | 595 | |
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| Net earnings | | | $ | 489 | | $ | 613 | | $ | 951 | | $ | 1,344 | |
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CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
| For the Three Months
ended Sept 30, |
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| (Unaudited)
2004 | |
2003 |
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Quarterly Results
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| Net Interest Income | | | $ | 2,772 | | $ | 2,705 | |
| Net Earnings | | | $ | 489 | | $ | 613 | |
| Earnings Per Share: | | |
| Basic | | | | 0.13 | | | 0.16 | |
| Diluted | | | | 0.13 | | | 0.16 | |
| Return on Average Assets (Annualized) | | | | 0.51 | % | | 0.66 | % |
| For the Six Months
ended Sept 30, |
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| (Unaudited)
2004 | |
2003 |
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Year to Date Results
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| Net Interest Income | | | $ | 5,391 | | $ | 5,496 | |
| Net Earnings | | | $ | 951 | | $ | 1,344 | |
| Earnings Per Share: | | |
| Basic | | | | 0.26 | | | 0.36 | |
| Diluted | | | | 0.26 | | | 0.36 | |
| Return on Average Assets (Annualized) | | | | 0.51 | % | | 0.72 | % |
| September 30,
2004
(Unaudited) | | March 31,
2004
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End of Period Data
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| Total Assets | | | $ | 381,518 | | $ | 369,007 | |
| Stockholders' Equity to Total Assets | | | | 10.97 | % | | 11.80 | % |
