EXHIBIT 99
NASDAQ SYMBOL: WAYN
___________________________________________RELEASE DATE: APRIL 29, 2004
WAYNE SAVINGS BANCSHARES, INC. CONTACT PERSON: CHARLES F. FINN
ANNOUNCES FISCAL 2004 NET EARNINGS CHAIRMAN AND CEO
MICHAEL C. ANDERSON
EVP/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
$2,704,000 for fiscal 2004, little changed from net earnings of $2,772,000
posted in the prior fiscal year. Due to the favorable effects of the Company's
capital management strategy of ongoing stock repurchases, earnings per share
increased to $.72 per diluted share in fiscal 2004 from $.71 per diluted share
in the previous year.
According to Charles F. Finn, Chairman and CEO, net earnings remained
relatively unchanged year to year primarily because the large volume of mortgage
loan refinancings had the effect of lowering asset yields. Finn further stated
management was able to achieve some growth in net interest income by
correspondingly reducing its cost of funds to offset the decline in asset
yields.
In the current record low interest rate environment, Finn said the Company
has continued to shorten investment maturities rather than reaching for higher
yields by extending maturities. With Federal Reserve officials recently
signaling their preference to raise interest rates in the near future, Finn said
management believes Wayne Savings Bancshares, Inc. is well-positioned to take
advantage of a rising interest rate environment.
Net interest income increased from $10.9 million in the prior fiscal year
to $11.1 million in the 2004 fiscal year, while other income increased from $1.6
million to $1.9 million. The increases in income were largely offset by an
increase of $554,000 in general and administrative expenses, which consisted
mainly of higher compensation and benefit costs, additional staff needed for
operating a fully converted publicly traded stock company, increased costs
relating to routine compliance matters required of a public company, and higher
transaction expenses in connection with a growing volume of business accounts.
For the fourth fiscal quarter ended March 31, 2004, net earnings totaled
$800,000, or $.21 per diluted share, as compared to net earnings of $872,000, or
$.21 per diluted share, reported in the comparable quarter last year. Net
interest income decreased from $2.98 million to $2.95 million and other income
decreased from $476,000 to $454,000 in the fourth fiscal quarter compared to the
same quarter last year. The decreases in income were partially offset by a
decrease in general and administrative expense in the comparable quarters, from
$2.27 million to $2.17 million, respectively.
In the fourth quarter, the Company's Board of Directors authorized the
repurchase of up to 195,365 shares, or 5% of the Company's outstanding shares of
common stock. As of March 31, 2004, 112,500 shares had been purchased. Share
repurchases will be made from time to time as market conditions warrant,
through open market repurchases, unsolicited negotiation transactions, or in
such other manner deemed appropriate by management. The repurchase program will
expire in January 2005.
In regards to the recently announced signing of a definitive agreement to
acquire Stebbins Bancshares, Inc. and its national bank subsidiary, Stebbins
National Bank of Creston, Ohio, Chairman Finn said the closing of the
transaction is expected to take place in May 2004. Following the merger,
Stebbins Bank will continue operations as a branch of Wayne Savings Community
Bank.
Wayne Savings Bancshares, Inc. completed its "second step" stock conversion
on January 8, 2003, just prior to beginning the 2004 fiscal year. At March 31,
2004, Wayne Savings Bancshares, Inc. reported total assets of $369.1 million,
total deposits of $291.8 million, and stockholders' equity of $43.6 million,
resulting in a capital-to-assets ratio of 11.80%. Established in 1899, Wayne
Savings Community Bank, the wholly owned subsidiary of Wayne Savings Bancshares,
Inc. is celebrating its 105th anniversary. Following the completion of the
Stebbins Bank acquisition, Wayne Savings' will have 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)
March 31, 2004 March 31, 2003
-------------- --------------
(unaudited)
ASSETS
Cash, cash equivalents & investment securities $ 51,469 $ 53,337
Mortgage-backed securities, net (1) 88,428 76,002
Loans receivable, net (1) 205,443 228,373
Federal Home Loan Bank stock 4,205 4,041
Office premises & equipment, net 8,742 8,818
Real estate acquired through foreclosure 100 --
Other assets 10,718 8,420
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TOTAL ASSETS $ 369,105 $ 378,991
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposit accounts $ 291,830 $ 300,931
Advances from Federal Home Loan Bank 30,000 30,000
Advances by borrowers for taxes & insurance 617 712
Accounts payable on mortgage loans serviced for others 118 130
Other liabilities 2,979 2,555
--------- ---------
TOTAL LIABILITIES 325,544 334,328
Common stock (3,907,318 and 3,888,795 shares of $.10 par value issued
at March 31, 2004 and March 31, 2003, respectively) 391 389
Additional paid-in capital 34,365 34,208
Retained earnings 12,727 11,830
Less required contributions for shares acquired by Employee Stock Ownership Plan (1,456) (1,612)
Shares acquired by Management Recognition Plan (1,142) --
Less Treasury Stock (1,803) --
Accumulated other comprehensive loss 479 (152)
--------- ---------
TOTAL STOCKHOLDERS' EQUITY 43,561 44,663
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 369,105 $ 378,991
========= =========
(1) Includes available for sale classifications.
CONSOLIDATED STATEMENTS OF EARNINGS
(Dollars in Thousands)
Three Months Ended Twelve Months Ended
March 31, March31,
2004 2003 2004 2003
---- ---- ---- ----
(unaudited) (unaudited)
Interest income 4,630 5,041 18,216 20,023
Interest expense 1,683 2,066 7,147 9,169
------- ------- ------- -------
Net interest income 2,947 2,975 11,069 10,854
Provision for losses on loans 110 16 173 91
------- ------- ------- -------
Net interest income after provision for loan losses 2,837 2,959 10,896 10,763
Other income 454 476 1,933 1,643
General, administrative, and other expense 2,173 2,268 8,971 8,417
------- ------- ------- -------
Earnings before federal income taxes 1,118 1,167 3,858 3,989
Federal income taxes 318 295 1,154 1,217
------- ------- ------- -------
Net earnings $ 800 $ 872 $ 2,704 $ 2,772
======= ======= ======= =======
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
For the Three Months
nded March 31,
--------------------------
2004 2003
---- ----
(unaudited)
Quarterly Results
- -----------------
Net Interest Income $ 2,947 $ 2,975
Net Earnings $ 800 $ 872
Earnings Per Share:
Basic 0.21 0.21
Diluted 0.21 0.21
Return on Average Assets (Annualized) .86% .92%
For the Twelve Months
ended March 31,
--------------------------
2004 2003
---- ----
(unaudited)
Annual Results
Net Interest Income $ 11,069 $ 10,854
Net Earnings $ 2,704 $ 2,772
Earnings Per Share:
Basic 0.72 0.71
Diluted 0.72 0.71
Return on Average Assets (Annualized) .72% .78%
March 31, March 31,
2004 2003
----------- ----------
(unaudited)
End of Period Data
Total Assets $ 369,105 $ 378,991
Stockholders' Equity to Total Assets 11.80% 11.78%