EXHIBIT 99
NEWS RELEASE
NASDAQ SYMBOL: WAYN
__________________________________________RELEASE DATE: JANUARY 29, 2004
WAYNE SAVINGS BANCSHARES, INC. CONTACT PERSON: CHARLES F. FINN
ANNOUNCES QUARTERLY EARNINGS CHAIRMAN AND CEO
AND STOCK REPURCHASE PROGRAM MICHAEL C. ANDERSON
EVP/CFO
(330) 264-5767
FOR IMMEDIATE RELEASE
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WOOSTER, OHIO - Wayne Savings Bancshares, Inc., (NASDAQ: WAYN), the stock
holding company parent of Wayne Savings Community Bank, reported net earnings of
$1,904,000, or $.51 per diluted share for the nine month period ended December
31, 2003. This represented a slight increase over net earnings of $1,900,000, or
$.50 per diluted share reported in the same nine month period last year. Net
interest income increased $243,000 and other income increased $317,000, which
was partially offset by an increase of $654,000 in general and administrative
expense.
For the quarter ended December 31, 2003, net earnings amounted to $560,000,
or $.15 per diluted share, compared to net earnings of $739,000, or $.19 per
diluted share reported in the prior year quarter. Net interest income decreased
$125,000 in the December 31, 2003 quarter, other income increased $22,000, and
general and administrative expense increased $208,000.
According to Charles Finn, Chairman and CEO, net earnings were down in this
fiscal year's third quarter primarily because the Company was unable to continue
net interest income growth in the current economic environment. "As with most
community banks," he stated, "the large volume of mortgage loan refinancing
prompted by record low interest rates has had the effect of lowering asset
yields."
Finn continued, "Wayne Savings has chosen to shorten investment maturities
rather than reaching for higher yields by extending maturities. As a result,
management believes the Company is well-positioned to take advantage of a rising
rate environment, when and if this occurs." He added, "However, the squeezing of
the net interest margin will present challenges to generating earnings growth
over the next several quarters."
It was also announced that the Company's Board of Directors has authorized
the repurchase of up to 195,365 shares, or 5%, of the Company's outstanding
shares of common stock. Repurchases will be made from time to time as market
conditions warrant, through open-market purchases, unsolicited negotiated
transactions, or in such other manner deemed appropriate by management.
In regards to the recently announced signing of the definitive agreement to
acquire Stebbins Bancshares, Inc. and its national bank subsidiary, Stebbins
National Bank of Creston, Ohio, Chairman Finn reported that all required
applications have been filed with the regulatory agencies. Regulatory approval
and the closing of the transaction is anticipated to take place in April 2004.
Following the legal closing and the merging of operations, Stebbins Bank will
operate as a branch of Wayne Savings Community Bank.
At December 31, 2003, Wayne Savings Bancshares, Inc. reported total assets
of $372.0 million, total deposits of $294.4 million, and stockholders' equity of
$44.4 million, resulting in a capital-to-assets ratio of 11.92%. Established in
1899, Wayne Savings Community Bank, the wholly owned subsidiary of Wayne Savings
Bancshares Inc., has ten full-service banking locations in Wayne, Holmes,
Ashland, Medina and Stark counties, Ohio.
This press release contains statements about future events that constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Actual results could differ materially from those
projected in the forward-looking statements. Factors that might cause such a
difference include, but are not limited to, general economic conditions, changes
in interest rates, regulatory considerations, competition, technological
developments, retention and recruitment of qualified personnel, and market
acceptance of the Company's pricing, products and services.
2
WAYNE SAVINGS BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands, except per share data)
December 31, March 31,
2003 2003
(Unaudited)
ASSETS
Cash, cash equivalents, & investment securities $ 52,108 $ 53,337
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Mortgage-backed securities, net (1) 88,999 76,002
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Loans receivable, net (1) 208,745 228,373
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Federal Home Loan Bank stock 4,164 4,041
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Office premises & equipment, net 8,748 8,818
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Real estate acquired through foreclosure 167 0
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Other assets 9,033 8,420
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TOTAL ASSETS $ 371,964 $ 378,991
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LIABILITIES AND STOCKHOLDERS' EQUITY
Deposit accounts $ 294,363 $ 300,931
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Advances from Federal Home Loan Bank 30,000 30,000
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Advances by borrowers for taxes & insurance 1,151 712
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Accounts payable on mortgage loans serviced for others 68 130
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Other liabilities 2,030 2,555
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TOTAL LIABILITIES 327,612 334,328
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Common stock (3,907,318 and 3,888,795 shares of $.10 par value issued
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at December 31, 2003 and March 31, 2003 respectively) 391 389
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Additional paid-in capital 34,365 34,208
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Retained earnings 12,373 11,830
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Less required contributions for shares acquired by Employee Stock Ownership Plan/MRP (1,495) (1,612)
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Shares acquired by Management Recognition Plan (1,142) 0
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Accumulated other comprehensive loss (140) (152)
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TOTAL STOCKHOLDERS' EQUITY 44,352 44,663
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 371,964 $ 378,991
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(1) Includes available for sale classifications.
WAYNE SAVINGS BANCSHARES, INC
CONSOLIDATED STATEMENTS OF EARNINGS
(Dollars in Thousands -- unaudited)
Three Months Ended Nine Months Ended
December 31, December 31,
2003 2002 2003 2002
----------- ----------- ----------- ------------
Interest income $ 4,362 $ 5,056 $ 13,586 $ 14,982
.........................................................
Interest expense 1,736 2,305 5,464 7,103
......................................................... ----------- ----------- ----------- ------------
Net interest income 2,626 2,751 8,122 7,879
.........................................................
Provision for losses on loans 0 37 63 75
......................................................... ----------- ----------- ----------- ------------
Net interest income after provision for loan losses 2,626 2,714 8,059 7,804
.........................................................
Other income 490 468 1,479 1,162
.........................................................
General, administrative, and other expense 2,315 2,107 6,798 6,144
......................................................... ----------- ----------- ----------- ------------
Earnings before federal income taxes 801 1,075 2,740 2,822
.........................................................
Federal income taxes 241 336 836 922
......................................................... ----------- ----------- ----------- ------------
Net earnings $ 560 $ 739 $ 1,904 $ 1,900
......................................................... =========== =========== =========== ============
WAYNE SAVINGS BANCSHARES, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data--unaudited)
For the Three Months
ended December 31,
-------------------------------
2003 2002
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Quarterly Results
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Net Interest Income $2,626 $2,751
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Net Earnings $560 $739
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Earnings Per Share:
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Basic 0.15 0.19
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Diluted 0.15 0.19
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Return on Average Assets (Annualized) .60% .82%
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For the Nine Months
ended December 31,
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2003 2002
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Year to Date Results
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Net Interest Income $8,122 $7,879
Net Earnings $1,904 $1,900
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Earnings Per Share:
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Basic 0.51 0.50
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Diluted 0.51 0.50
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Return on Average Assets (Annualized) .68% .71%
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December 31, March 31,
2003 2003
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End of Period Data
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Total Assets $371,964 $378,991
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Stockholders' Equity to Total Assets 11.92% 11.78%
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