Exhibit 99
NASDAQ SYMBOL: WAYN
___________________________________________RELEASE DATE: JULY 22, 2004
WAYNE SAVINGS BANCSHARES, INC. CONTACT PERSON: CHARLES F. FINN
ANNOUNCES QUARTERLY EARNINGS CHAIRMAN AND CEO
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
$462,000 or $.13 per diluted share in the quarter ended June 30, 2004, compared
to $731,000 or $.20 per diluted share in the quarter ended June 30, 2003.
According to Charles F. Finn, Chairman and Chief Executive Officer, the
decrease in quarterly earnings was primarily due to a downturn in net interest
income, which had grown steadily over the past four years, and lower gains on
sale of mortgage loans because of slowing mortgage loans refinancing volume. In
this extended period of record low interest rates, Finn said that management has
pursued a policy to protect the Company against rising interest rates in the mid
to long term, which has resulted in a reduction in short term earnings.
In its asset liability management strategy, Finn said "the Company has
continued to shorten investment maturities rather than reaching for higher
yields through extended maturities." "With this enhancing of the Company's
interest rate risk position and Federal Reserve officials signaling their
preference to raise interest rates," Finn continued, "management believes Wayne
Savings is well-positioned to take advantage of a rising interest rate
environment."
In the first fiscal quarter ended June 30, 2004, as compared to the same
quarter last year, net interest income was down $172,000 and other income,
consisting largely of gains on sale of loans, decreased $105,000. General and
administrative expenses increased $157,000 mainly due to higher compensation and
benefit costs relating to normal merit increases, additional staff required to
operate a fully-converted public company, and the Stebbins Bank acquisition in
the first quarter of the 2005 fiscal year.
The closing of the transaction to acquire Stebbins Bancshares, Inc. and its
national bank subsidiary, Stebbins National Bank of Creston, Ohio, was completed
on June 1, 2004, and the financial statements were consolidated with Wayne
Savings Bancshares, Inc. on June 30, 2004.
Total assets of Wayne Savings Bancshares, Inc. on June 30, 2004 amounted to
$385.6 million, following the consolidation with Stebbins National Bank.
Deposits totaled $316.4 million, and stockholders' equity totaled $42.0 million,
resulting in a capital-to-assets ratio of 10.9%. Now celebrating its 105th
anniversary, 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)
June 30, 2004 March 31, 2004
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(Unaudited)
ASSETS
Cash, cash equivalents, & investment securities ................................ $ 64,641 $ 51,469
Mortgage-backed securities, net (1) ............................................ 77,961 88,428
Loans receivable, net (1) ...................................................... 216,141 205,443
Federal Home Loan Bank stock ................................................... 4,247 4,205
Office premises & equipment, net ............................................... 9,183 8,742
Real estate acquired through foreclosure ....................................... 0 100
Other assets ................................................................... 13,420 10,620
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TOTAL ASSETS ........................................................ $ 385,593 369,007
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LIABILITIES AND STOCKHOLDERS' EQUITY
Deposit accounts ............................................................... $ 316,419 291,830
Advances from Federal Home Loan Bank ........................................... 25,000 30,000
Advances by borrowers for taxes & insurance .................................... 227 617
Accounts payable on mortgage loans serviced for others ......................... 111 118
Other liabilities .............................................................. 1,800 2,881
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TOTAL LIABILITIES .................................................... 343,557 325,446
Common stock (3,907,318 shares of $.10 par value issued
at both June 30, 2004 and March 31, 2004 ................................... 391 391
Additional paid-in capital ..................................................... 34,365 34,365
Retained earnings .............................................................. 12,742 12,727
Less required contributions for shares acquired by Employee Stock Ownership Plan (1,418) (1,456)
Shares acquired by Management Recognition Plan ................................. (1,142) (1,142)
Less Treasury Stock ............................................................ (2,216) (1,803)
Accumulated other comprehensive loss ........................................... (686) 479
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TOTAL STOCKHOLDERS' EQUITY ........................................... 42,036 43,561
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ..................................... $ 385,593 $ 369,007
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(1) Includes available for sale classifications.
CONSOLIDATED STATEMENTS OF EARNINGS
(Dollars in Thousands)
Three Months Ended
June 30,
2004 2003
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(Unaudited)
Interest income ........................................ $4,244 $4,723
Interest expense ....................................... 1,625 1,932
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Net interest income ............................... 2,619 2,791
Provision for losses on loans .......................... 15 32
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Net interest income after provision for loan losses 2,604 2,759
Other income ........................................... 405 510
General, administrative, and other expense ............. 2,369 2,212
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Earnings before federal income taxes .................. 640 1,057
Federal income taxes ................................... 178 326
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Net earnings ...................................... $ 462 $ 731
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CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
For the Three Months
ended June 30,
------------------------
2004 2003
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(Unaudited)
Quarterly Results
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Net Interest Income ................. $ 2,619 $ 2,791
Net Earnings ........................ $ 462 $ 731
Earnings Per Share:
Basic ............................ 0.13 0.20
Diluted .......................... 0.13 0.20
Return on Average Assets (Annualized) .48% .77%
June 30, March 31,
2004 2004
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(Unaudited)
End of Period Data
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Total Assets ....................... $ 385,593 $ 369,007
Stockholders' Equity to Total Assets 10.90% 11.80%