WAYNE SAVINGS BANCSHARES, INC. ANNOUNCES EARNINGS FOR THE FIRST QUARTER OF FISCAL 2006. | Exhibit 99 NASDAQ SYMBOL: WAYN RELEASE DATE: JULY 28, 2005 CONTACT PERSON: CHARLES F. FINN CHAIRMAN AND CEO MICHAEL C. ANDERSON EVP/CFO (330) 264-5767 |
FOR IMMEDIATE RELEASE
WOOSTER, OHIO – Wayne Savings Bancshares, Inc. (NASDAQ:WAYN), the parent of Wayne Savings Community Bank, reported net earnings of $440,000 or $.13 per diluted share for the first fiscal quarter ended June 30, 2005, compared to net earnings of $462,000 or $.13 per diluted share in the quarter ended June 30, 2004.
According to Charles Finn, president and chief executive officer, the earnings for the first quarter of fiscal 2006 were substantially similar to earnings for the same period in fiscal 2005 primarily due to an increase of $180,000, or 7%, in net interest income before provision for loan losses from the quarter ended June 30, 2004 and, to a lesser extent, a decrease of $30,000 in federal income taxes. The positive impact of the increase in net interest income and the decrease in federal income taxes was more than offset by an increase of $250,000 in general, administrative and other expenses. The expense increase, consisting mainly of higher compensation and benefits, was largely due to the acquisition of Stebbins National Bank and the expansion of personnel needed to enhance the commercial lending department and to establish a trust department staffed by a team of qualified, experienced trust professionals.
Finn said, as announced at the end of the Company’s fiscal year on March 31, 2005, Wayne Savings had established a goal of positioning itself as the area’s premier independent community bank. To accomplish this goal, the Company adopted a strategic initiative to expand its commercial lending operations, to establish a trust department, and to offer an internet banking program with an online bill pay feature. Finn noted that some expenses were accelerated into the fiscal 2005 year to enable the Company to absorb the increased administrative expenses required to expand products and services. He said the Company’s Board and Management were extremely pleased with the positive impact of its expansion plans on the results for the first quarter of fiscal 2005.
At June 30, 2005, Wayne Savings Bancshares, Inc. reported total assets of $406.6 million, an increase of $30.1 million, or 8%, over total assets of $376.5 million one year ago. Due to the Company’s continuing asset growth, Wayne Savings remains the largest independent community bank headquartered in the Company’s five county market area of Wayne, Holmes, Ashland, Medina, and Stark counties, Ohio. Stockholders equity on June 30, 2005 amounted to $37.7 million, resulting in a capital-to-assets ratio of 9.28%.
Established in 1899, Wayne Savings Community Bank, the wholly owned subsidiary of Wayne Savings Bancshares, Inc. has eleven full-service banking locations in the communities of Wooster, Ashland, Millersburg, Rittman, Lodi, North Canton, and Creston, Ohio.
WAYNE SAVINGS BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands, except per share data)
June 30, 2005 (Unaudited) | March 31, 2005 | |||||||
---|---|---|---|---|---|---|---|---|
ASSETS | ||||||||
Cash, cash equivalents, & investment securities | $ | 108,640 | $ | 102,798 | ||||
Mortgage-backed securities, net (1) | 56,213 | 60,352 | ||||||
Loans receivable, net (1) | 214,581 | 213,627 | ||||||
Federal Home Loan Bank stock | 4,439 | 4,386 | ||||||
Office premises & equipment, net | 8,850 | 8,922 | ||||||
Real estate acquired through foreclosure | - | 35 | ||||||
Other assets | 13,866 | 13,281 | ||||||
TOTAL ASSETS | $ | 406,589 | $ | 403,401 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Deposit accounts | $ | 327,502 | $ | 320,586 | ||||
Advances from Federal Home Loan Bank and other borrowings | 39,000 | 40,000 | ||||||
Advances by borrowers for taxes & insurance | 151 | 612 | ||||||
Accounts payable on mortgage loans serviced for others | 218 | 231 | ||||||
Other liabilities | 2,002 | 1,773 | ||||||
TOTAL LIABILITIES | 368,873 | 363,202 | ||||||
Common stock (3,934,874 and 3,907,318 shares of $.10 par value issued | ||||||||
at June 30, 2005 and March 31, 2005 | 393 | 391 | ||||||
Additional paid-in capital | 35,498 | 35,133 | ||||||
Retained earnings | 11,399 | 11,371 | ||||||
Less required contributions for shares acquired by Employee Stock Ownership Plan | (1,283 | ) | (1,304 | ) | ||||
Less Treasury Stock | (8,211 | ) | (4,600 | ) | ||||
Accumulated other comprehensive loss | (80 | ) | (792 | ) | ||||
TOTAL STOCKHOLDERS' EQUITY | 37,716 | 40,199 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 406,589 | $ | 403,40 | ||||
(1) Includes available for sale classifications.
CONSOLIDATED STATEMENTS OF EARNINGS
(Dollars in Thousands)
Three Months Ended June 30, | ||||||||
---|---|---|---|---|---|---|---|---|
2005 (Unaudited) | 2004 | |||||||
Interest income | 4,681 | 4,244 | ||||||
Interest expense | 1,882 | 1,625 | ||||||
Net interest income | 2,799 | 2,619 | ||||||
Provision for losses on loans | - | 15 | ||||||
Net interest income after provision for loan losses | 2,799 | 2,604 | ||||||
Other income | 408 | 405 | ||||||
General, administrative, and other expense (1) | 2,619 | 2,369 | ||||||
Earnings before federal income taxes | 588 | 640 | ||||||
Federal income taxes | 148 | 178 | ||||||
Net earnings | $ | 440 | $ | 462 | ||||
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
For the Three Months ended June 30, | ||||||||
---|---|---|---|---|---|---|---|---|
2005 (Unaudited) | 2004 | |||||||
Quarterly Results | ||||||||
Net Interest Income | $ | 2,799 | $ | 2,619 | ||||
Net Earnings | $ | 440 | $ | 462 | ||||
Earnings Per Share: | ||||||||
Basic | 0.13 | 0.13 | ||||||
Diluted | 0.13 | 0.13 | ||||||
Return on Average Assets (Annualized) | 0.43 | % | 0.48 | % | ||||
June 30, 2005 | March 31, 2005 | |||||||
End of Period Data | ||||||||
Total Assets | $ | 406,589 | $ | 403,401 | ||||
Stockholders' Equity to Total Assets | 9.28 | % | 9.97 | % |