Exhibit 99.1
Wayne Savings Bancshares, Inc. Announces Earnings Increase
WOOSTER, Ohio, April 24 /PRNewswire-FirstCall/ -- Wayne Savings
Bancshares, Inc. (Nasdaq: WAYN), the stock holding company parent of Wayne
Savings Community Bank, reported net earnings of $2.8 million, or $.95 per
diluted share, for the fiscal year ended March 31, 2003. This represents a
52% increase over net earnings of $1.8 million, or $.71 per diluted share, for
the fiscal year ended March 31, 2002.
According to Charles F. Finn, President, the increase in net earnings for
the 2003 fiscal year was primarily attributable to significant growth in net
interest income after loan loss provision, which increased $2.0 million, or
22%, from $8.8 million to $10.8 million. The increase in net interest income
was partially offset by a $701,000 increase in general, administrative and
other expense, which consisted largely of an increase in employee compensation
and benefits. A large portion of the increase was due to normal merit
increases, an increase in employee benefit plan costs, and the hiring of
additional executive staff needed for operating a fully converted, publicly
traded stock company and for complying with enlarged federal regulations.
Other income remained virtually unchanged year-to-year and federal income
taxes increased $278,000 in fiscal 2003.
President Finn stated, "We are particularly pleased the Company achieved a
record year of earnings through an increase in core earnings and not through
non-recurring gains from the sale of loans or securities. We are also
extremely gratified over the tremendous amount of support from our loyal
depositors and the investment community as reflected in their favorable
response to our recent stock offering." Wayne Savings Bancshares, Inc., the
newly re-organized Delaware holding company for Wayne Savings Community Bank,
completed a second-step stock offering on January 8, 2003, at which time the
holding company became wholly owned by public stockholders. In the
subscription and community offering, the Company sold 2,040,816 shares,
approximately the midpoint of the offering range, at a purchase price of
$10.00 per share.
For the quarter ended March 31, 2003, net earnings increased 58% to
$872,000 or $.21 per diluted share, compared to $549,000 or $.21 per diluted
share, reported in the comparable quarter of last year. Again, the primary
driver of the earnings increase was a growth of $431,000 in net interest
income, compared to the same quarter last year.
At March 31, 2003, Wayne Savings Bancshares, Inc. reported total assets of
$378.9 million, reflecting growth of $44 million, or 13% during the year. The
asset total includes approximately $18.8 million in proceeds from the stock
offering. Total deposits were $301 million and stockholders' equity totaled
$44.9 million.
Established in 1899, Wayne Savings Community Bank, the wholly owned
subsidiary of Wayne Savings Bancshares, Inc. has ten banking locations in
Wayne, Holmes, Ashland, Medina, and Stark counties.
WAYNE SAVINGS BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands, except per share data)
March 31, 2003 March 31, 2002
(Unaudited)
ASSETS
Cash, cash equivalents, & investment
securities $53,336 $50,169
Mortgage-backed securities, net (A) 76,002 17,326
Loans receivable, net (A) 228,373 251,172
Federal Home Loan Bank stock 4,041 3,767
Office premises & equipment, net 8,818 9,208
Real estate acquired through foreclosure 0 19
Other assets 8,369 3,182
TOTAL ASSETS $378,939 $334,843
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposit accounts $300,940 $300,957
Advances from Federal Home Loan Bank 30,000 5,000
Advances by borrowers for taxes & insurance 712 880
Accounts payable on mortgage loans
serviced for others 130 116
Other liabilities 2,219 1,843
TOTAL LIABILITIES 334,001 308,796
Common stock (3,888,636 shares of
$.10 par value at March 31, 2003 and
2,640,835 shares of $1.00 par value at
March 31, 2002.) 389 2,641
Additional paid-in capital 32,596 14,444
Retained earnings 11,830 10,121
Less: Treasury Stock (70,014 shares
for March 31, 2002) 0 (1,181)
Unrealized gain on mortgage-backed
securities available for sale 123 22
TOTAL STOCKHOLDERS' EQUITY 44,938 26,047
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $378,939 $334,843
(A) Includes available for sale classifications.
CONSOLIDATED STATEMENTS OF EARNINGS
(Dollars in Thousands)
Three Months Ended Twelve Months Ended
March 31, March 31,
2003 2002 2003 2002
(Unaudited) (Unaudited)
Interest income $5,041 $5,293 $20,023 $21,309
Interest expense 2,066 2,749 9,169 12,348
Net interest income 2,975 2,544 10,854 8,961
Provision for losses on loans 16 16 91 134
Net interest income after
provision for loan losses 2,959 2,528 10,763 8,827
Other income 487 358 1,649 1,657
General, administrative, and
other expense 2,279 2,049 8,423 7,722
Earnings before federal income
taxes 1,167 837 3,989 2,762
Federal income taxes 295 288 1,217 939
Net earnings $872 $549 $2,772 $1,823
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
For the Three Months
ended March 31,
2003 2002
(Unaudited)
Quarterly Results
Net Interest Income $2,975 $2,544
Net Earnings $872 $549
Earnings Per Share:
Basic 0.21 0.21
Diluted 0.21 0.21
Return on Average Assets (Annualized) .92% .66%
For the Year
ended March 31,
2003 2002
(Unaudited)
Year to Date Results
Net Interest Income $10,854 $8,961
Net Earnings $2,772 $1,823
Earnings Per Share:
Basic 0.96 0.71
Diluted 0.95 0.71
Return on Average Assets (Annualized) .78% .56%
March 31, March 31,
2003 2002
(Unaudited)
End of Period Data
Total Assets $378,939 $334,843
Stockholders' Equity to Total Assets 11.86% 7.78%