SCHEDULE 14-A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934
Filed by the Registrant [x]
Filed by a Party other than the Registrant []
Check the appropriate box:
[ ] Preliminary Proxy Statement
[X] Definitive Proxy Statement
[ ] Definitive Additional Materials
[ ] Soliciting Material Pursuant to ss.240.14a-11(c) or ss.240.14a-12
Wayne Savings Bancshares, Inc.
-------------------------------------------------
(Name of Registrant as Specified In Its Charter)
Ned Quint, Luse Lehman Gorman Pomerenk & Schick, PC
--------------------------------------------------------
(Name of Person(s) Filling Proxy Statement)
Payment of Filing Fee (Check the appropriate box):
[x] No fee required
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
1) Title of each class of securities to which transaction applies:
.......................................................................
2) Aggregate number of securities to which transaction applies:
.......................................................................
3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11:
.......................................................................
4) Proposed maximum aggregate value of transaction:
.......................................................................
5) Total fee paid:
.......................................................................
[ ] Fee previously paid:
[ ] Check box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number, or
the Form or Schedule and the date of its filing.
1) Amount Previously Paid:
2) Form, Schedule or Registration Statement No.:
3) Filing Party:
4) Date Filed:
[Letterhead of Wayne Savings Bancshares, Inc.]
June 26, 2001
Dear Stockholder:
We cordially invite you to attend the 2001 Annual Meeting of Stockholders of
Wayne Savings Bancshares, Inc. (the "Company"). The Annual Meeting will be held
at the Greenbriar Conference Centre, 50 Riffel Road, Wooster, Ohio, at 10:00
a.m., Ohio time, on July 26, 2001.
The enclosed Notice of Annual Meeting and Proxy Statement describe the formal
business to be transacted. During the meeting we will also report on the
operations of the Company. Directors and officers of the Company, as well as a
representative of our independent auditors, will be present to respond to any
questions that stockholders may have.
At the Annual Meeting, stockholders will be requested to (i) elect three
directors of the Company and (ii) ratify the appointment of Grant Thornton LLP
as auditors for the Company's fiscal year ending March 31, 2002.
The Board of Directors of the Company has determined that the matters to be
considered at the Annual Meeting are in the best interest of the Company and its
stockholders. For the reasons set forth in the Proxy Statement, the Board of
Directors unanimously recommends a vote "FOR" each matter to be considered.
Also enclosed for your review is our 2001 Annual Report to Stockholders, which
contains detailed information concerning the activities and operating
performance of the Company. On behalf of the Board of Directors, we urge you to
sign, date and return the enclosed proxy card as soon as possible even if you
currently plan to attend the Annual Meeting. This will not prevent you from
voting in person, but will assure that your vote is counted if you are unable to
attend the meeting.
Sincerely,
/s/ Charles F. Finn
Charles F. Finn
Chairman, President and Chief Executive Officer
WAYNE SAVINGS BANCSHARES, INC.
151 North Market Street
Wooster, Ohio 44691
(330) 264-5767
NOTICE OF
2001 ANNUAL MEETING OF STOCKHOLDERS
To Be Held On July 26, 2001
Notice is hereby given that the 2001 Annual Meeting of Wayne Savings
Bancshares, Inc. (the "Company") will be held at the Greenbriar Conference
Centre, 50 Riffel Road, Wooster, Ohio, at 10:00 a.m., Ohio time, on July 26,
2001.
A Proxy Card and a Proxy Statement for the Meeting are enclosed.
The Meeting is for the purpose of considering and acting upon:
1. The election of three directors of the Company; and
2. The ratification of the appointment of Grant Thornton LLP as
auditors for the Company for the fiscal year ending March 31,
2002; and
such other matters as may properly come before the Meeting, or any adjournments
thereof. The Board of Directors is not aware of any other business to come
before the Meeting.
Any action may be taken on the foregoing proposals at the Meeting on the
date specified above, or on any date or dates to which the Meeting may be
adjourned. Stockholders of record at the close of business on June 14, 2001, are
the stockholders entitled to vote at the Meeting, and any adjournments thereof.
EACH STOCKHOLDER, WHETHER HE OR SHE PLANS TO ATTEND THE MEETING, IS
REQUESTED TO SIGN, DATE AND RETURN THE ENCLOSED PROXY CARD WITHOUT DELAY IN THE
ENCLOSED POSTAGE-PAID ENVELOPE. ANY PROXY GIVEN BY THE STOCKHOLDER MAY BE
REVOKED AT ANY TIME BEFORE IT IS EXERCISED. A PROXY MAY BE REVOKED BY FILING
WITH THE SECRETARY OF THE COMPANY A WRITTEN REVOCATION OR A DULY EXECUTED PROXY
BEARING A LATER DATE. ANY STOCKHOLDER PRESENT AT THE MEETING MAY REVOKE HIS OR
HER PROXY AND VOTE PERSONALLY ON EACH MATTER BROUGHT BEFORE THE MEETING.
HOWEVER, IF YOU ARE A STOCKHOLDER WHOSE SHARES ARE NOT REGISTERED IN YOUR OWN
NAME, YOU WILL NEED ADDITIONAL DOCUMENTATION FROM YOUR RECORD HOLDER TO VOTE
PERSONALLY AT THE MEETING.
By Order of the Board of Directors
/s/ Charles F. Finn
Charles F. Finn
Chairman, President and Chief
Executive Officer
Wooster, Ohio
June 26, 2001
PROXY STATEMENT
WAYNE SAVINGS BANCSHARES, INC.
151 North Market Street
Wooster, Ohio 44691
(330) 264-5767
2001 ANNUAL MEETING OF STOCKHOLDERS
July 26, 2001
This Proxy Statement is furnished in connection with the solicitation of
proxies on behalf of the Board of Directors of Wayne Savings Bancshares, Inc.
(the "Company") to be used at the 2001 Annual Meeting of Stockholders of the
Company (the "Meeting"), which will be held at the Greenbriar Conference Centre,
50 Riffel Road, Wooster, Ohio, on July 26, 2001, at 10:00 a.m., Ohio time, and
all adjournments of the Meeting. The accompanying Notice of Annual Meeting of
Stockholders and this Proxy Statement are first being mailed to stockholders on
or about June 26, 2001.
REVOCATION OF PROXIES
Stockholders who execute proxies in the form solicited hereby retain the
right to revoke them in the manner described below. Unless so revoked, the
shares represented by such proxies will be voted at the Meeting and all
adjournments thereof. Proxies solicited on behalf of the Board of Directors of
the Company will be voted in accordance with the directions given thereon.
Please sign and return your Proxy to the Company in order for your vote to be
counted. Proxies which are signed, but contain no instructions for voting, will
be voted "FOR" the proposals set forth in this Proxy Statement for consideration
at the Meeting.
Proxies may be revoked by sending written notice of revocation to the
Secretary of the Company at the address of the Company shown above, or by filing
a duly executed proxy bearing a later date. The presence at the Meeting of any
stockholder who has given a proxy shall not revoke such proxy unless the
stockholder delivers his or her ballot in person at the Meeting or delivers a
written revocation to the Secretary of the Company prior to the voting of such
proxy.
VOTING SECURITIES AND PRINCIPAL HOLDERS THEREOF
Holders of record of the Company's common stock, par value $1.00 per
share ("Common Stock") as of the close of business on June 14, 2001 (the "Record
Date"), are entitled to one vote for each share then held. As of the Record
Date, there were 2,571,093 shares of Common Stock issued and outstanding. The
presence in person or by proxy of a majority of the outstanding shares of Common
Stock entitled to vote is necessary to constitute a quorum at the Meeting.
As to the election of directors, the proxy card being provided by the
Board of Directors enables a stockholder to vote FOR the election of the
nominees proposed by the Board, or to WITHHOLD authority to vote for one or more
of the nominees being proposed. Directors are elected by a plurality of votes of
shares present in person or by proxy and entitled to vote and the appointment of
auditors is ratified by a majority of the outstanding shares of Common Stock;
broker non-votes will not be counted as shares present and entitled to vote.
Wayne Savings Bancshares, M.H.C., the Company's parent mutual holding company
(the "Mutual Holding Company"), which owns a majority of the outstanding Common
Stock, has indicated its intention to vote in favor of all matters presented to
stockholders at the Annual Meeting, which would ensure the approval of such
matters.
Persons and groups owning in excess of 5% of the Common Stock are
required to file certain reports with the Securities and Exchange Commission
(the "SEC") regarding such ownership pursuant to the Securities Exchange Act of
1934 (the "Exchange Act"). The following table sets forth, as of June 14, 2001,
the shares of Common Stock beneficially owned by all directors and executive
officers as a group and by each person who was the beneficial owner of more than
5% of the outstanding shares of Common Stock. This information is based solely
upon information supplied to the Company and the filings required pursuant to
the Exchange Act.
Amount of Shares
Owned and Nature Percent of Shares
Name and Address of of Beneficial of Common Stock
Beneficial Owners Ownership(1) Outstanding
Wayne Savings Bankshares, M.H.C.(2) 1,350,699 52.5%
151 North Market Street
Wooster, Ohio 44691
All Directors and Executive Officers 234,917(3) 9.1%
as a Group (11 persons)
_____________________________
(1) In accordance with Rule 13d-3 under the Exchange Act, a person is deemed to
be the beneficial owner for purposes of this table, of any shares of Common
Stock if he has sole or shared voting or investment power with respect to
such security, or has a right to acquire beneficial ownership at any time
within 60 days from the date as of which beneficial ownership is being
determined. As used herein, "voting power" is the power to vote or direct
the voting of shares and "investment power" is the power to dispose or
direct the disposition of shares. Includes all shares held directly as well
as by spouses and minor children, in trust and other indirect ownership,
over which shares the named individuals effectively exercise sole or shared
voting and investment power.
(2) The Company's executive officers and directors are also executive officers
and directors of the Mutual Holding Company.
(3) Includes 5,309 shares of common stock underlying options granted pursuant to
The Wayne Savings and Loan Company 1993 Stock Option Plan for Outside
Directors and 5,241 shares subject to options under The Wayne Savings and
Loan Company 1993 Incentive Stock Option Plan that may be exercised within
60 days of the date as of which beneficial ownership is being determined.
PROPOSAL I--ELECTION OF DIRECTORS
The Company's Board of Directors is currently composed of seven members.
The Company's Bylaws provide that approximately one-third of the directors are
to be elected annually. Directors of the Company are generally elected to serve
for a three year-period and until their respective successors shall have been
elected and shall qualify. Three directors will be elected at the Meeting to
serve for a three-year period and until their respective successors have been
elected and qualified. The Board of Directors has nominated to serve as
directors Donald E. Massaro, Russell L. Harpster, and Terry A. Gardner, each of
whom is currently a member of the Board of Directors.
The table below sets forth certain information regarding the composition
of the Company's Board of Directors, including the terms of office of Board
members. It is intended that the proxies solicited on behalf of the Board of
Directors (other than proxies in which the vote is withheld as to one or more
nominees) will be voted at the Meeting for the election of the nominees
identified below. If any nominee is unable to serve, the shares represented by
all such proxies will be voted for the election of such substitute as the Board
of Directors may recommend. At this time, the Board of Directors knows of no
reason why any of the nominees might be unable to serve, if elected. Except as
indicated herein, there are no arrangements or understandings between any
nominee and any other person pursuant to which such nominee was selected.
Shares of
Common Stock
Positions Beneficially
Held in the Director Current Term Owned on Percent
Name (1) Age Company Since(2) to Expire June 14, 2001(3) Of Class
NOMINEES
Donald E. Massaro 72 Director 1990 2004 10,230 *
Russell L. Harpster 66 Director 1979 2004 38,482(4) 1.5%
Terry A. Gardner 54 Director 1994 2004 31,492 1.2%
DIRECTORS CONTINUING IN OFFICE
Charles F. Finn 63 Chairman of the Board, 1976 2002 34,664(5) 1.3%
President, and Chief
Executive Officer
Joseph L. Retzler 73 Director 1985 2002 15,471(6) *
Kenneth G. Rhode 92 Director 1958 2003 60,220 2.3%
James C. Morgan 63 Director 1995 2003 11,412 *
EXECUTIVE OFFICERS WHO ARE NOT DIRECTORS
Wanda Christopher-Finn 58 Executive Vice President -- -- 21,677(7) *
Gary C. Miller 60 Senior Vice President -- -- 9,896 *
Todd J. Tappel 37 Senior Vice President and -- -- 1,862 *
Chief Financial Officer
Myron L. Swartzentruber 33 Vice President -- -- 0 *
and Controller
<FN>
________________________________
(*) Less than 1%.
(1) The mailing address for each person listed is 151 North Market Street,
Wooster, Ohio 44691. Each of the persons listed is also a director or
executive officer of the Mutual Holding Company.
(2) Reflects initial appointment to the Board of Directors of Wayne Savings
Community Bank (the "Bank," or "Wayne Savings"), the Company's
wholly-owned subsidiary.
(3) See definition of "beneficial ownership" in the table in "Voting
Securities and Principal Holders Thereof."
(4) Includes options to purchase 842 shares pursuant to the 1993 Stock Option
Plan for Outside Directors (the "Directors' Plan").
(5) Includes options to purchase 3,200 shares pursuant to the 1993 Incentive
Stock Option Plan (the "Stock Option Plan").
(6) Includes options to purchase 4,467 shares pursuant to the Directors' Plan.
(7) Includes options to purchase 2,041 shares pursuant to the Stock Option
Plan.
</FN>
The principal occupation during the past five years of each director and
executive officer of the Company is set forth below. All directors and executive
officers have held their present positions for five years unless otherwise
stated.
Kenneth G. Rhode has been Chairman of the Board of the Bank since 1972.
He was Chief Executive Officer of Lightning Rod Mutual and Western Reserve
Mutual Insurance Companies of Wooster, Ohio, prior to his retirement in 1988.
Charles F. Finn has been President and Chief Executive Officer of the
Bank since 1983. He has been employed by Wayne Savings for 37 years. Mr. Finn is
the spouse of Wanda Christopher-Finn, Executive Vice President of the Company.
He was appointed Chairman of the Board of Directors of the Company on September
25, 1997.
Donald E. Massaro has been affiliated with the Bank for 35 years. He
previously was an officer of the Bank and retired in December 1992.
Russell L. Harpster is an attorney and a partner in the law firm of
Henderson, Harpster & Vanosdall in Ashland, Ohio.
Joseph L. Retzler is President of Retzler Hardware in Wooster, Ohio.
Terry A. Gardner is President and General Partner of Terra Management,
Inc., in Wooster, Ohio, a firm involved in the construction and management of
multi-family housing projects. He was elected director on October 25, 1994 to
fill the unexpired term of a retiring director.
James C. Morgan is President of Franklin Oil & Gas, Inc. in Wooster,
Ohio. He was elected director on February 28, 1995 to fill the unexpired term
of a retiring director.
Wanda Christopher-Finn is Executive Vice President, Chief Administrative
Officer and has been affiliated with the Bank since 1972. Ms. Christopher-Finn
is the spouse of Charles Finn.
Gary C. Miller became Senior Vice President, Manager of the Loan
Origination Division in February 1996 and was promoted to Chief Lending Officer
in August 1997. He was previously Vice President, Manager of Mortgage Loans. He
has been affiliated with Wayne Savings since 1971.
Todd J. Tappel joined the Bank in April 1996 as Vice President,
Director of Planning. Mr. Tappel was promoted to Senior Vice President in
March, 1997 and to Chief Financial Officer in August, 1997. He also serves as
the Company's Corporate Secretary. He previously worked for the Office of
Thrift Supervision as a federal thrift regulator.
Myron L. Swartzentruber joined the Bank in January 2001 as Vice
President and Controller. He previously held a similar position with another
financial institution.
Meetings and Committees of the Board of Directors
The business of the Company's Board of Directors is conducted through
meetings and activities of the Board and its committees. During the year ended
March 31, 2001, the Board of Directors held 12 regular meetings and one special
meeting. During the year ended March 31, 2001, no director attended fewer than
75 percent of the total meetings of the Board of Directors of the Company and
committees on which such director served.
The Executive Committee of the Board of Directors, consisting of
Directors Kenneth Rhode, Charles Finn, Russell Harpster and Joseph Retzler, also
serves as the Compensation Committee of the Company, and meets periodically to
review the performance of officers and employees and determine compensation
programs and adjustments. The Executive Committee met two times in its capacity
as the Compensation Committee during the year ended March 31, 2001.
The Audit Committee consists of Directors Kenneth Rhode, Donald Massaro,
Terry Gardner and James Morgan. This Committee meets on a quarterly basis with
the internal auditor to review audit programs and the results of audits of
specific areas as well as other regulatory compliance issues. The Company's
Audit Committee met four times during the year ended March 31, 2001.
The Nominating Committee consists of the full Board of Directors. While
the Nominating Committee will consider nominees recommended by stockholders, it
has not actively solicited recommendations from the Company's stockholders for
nominees, nor established any procedures for this purpose. Any nominations must,
however, be made pursuant to applicable provisions of the Company's Bylaws. The
Board of Directors met one time in its capacity as the Nominating Committee
during the fiscal year ended March 31, 2001.
Audit Committee Report
In accordance with rules recently established by the SEC, the Audit
Committee has prepared the following report. The Board of Directors has adopted
a written charter for the Audit Committee, which is attached to this proxy
statement as Appendix A.
As part of its ongoing activities, the Audit Committee has:
o Reviewed and discussed with management the Company's audited
consolidated financial statements for the fiscal year ended March
31, 2001;
o Discussed with the independent auditors the matters required to
be discussed by Statement on Auditing Standards No. 61,
Communications with Audit Committees, as amended; and
o Received the written disclosures and the letter from the
independent auditors required by Independence Standards Board
Standard No. 1, Independence Discussions with Audit Committees,
and has discussed with the independent auditors their
independence.
Based on the review and discussions referred to above, the Audit
Committee recommended to the Board of Directors that the audited consolidated
financial statements be included in the Company's Annual Report on Form 10-KSB
for the fiscal year ended March 31, 2001 and be filed with the SEC.
This report shall not be deemed incorporated by reference by any general
statement incorporating by reference this proxy statement into any filing under
the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934,
as amended, except to the extent that the Company specifically incorporates this
information by reference, and shall not otherwise be deemed filed under such
Acts.
The Audit Committee
Kenneth Rhode
Donald Massaro
Terry Gardner
James Morgan
Ownership Reports by Officers and Directors
The Common Stock is registered pursuant to Section 12(g) of the Exchange
Act. The officers and directors of the Company and beneficial owners of greater
than 10% of the outstanding shares of Company Common Stock ("10% beneficial
owners") are required to file reports on Forms 3, 4 and 5 with the SEC
disclosing beneficial ownership and changes in beneficial ownership of the
Common Stock. SEC rules require disclosure in the Company's Proxy Statement and
Annual Report on Form 10-KSB of the failure of an officer, director or 10%
beneficial owner of the Company Common Stock to file a Form 3, 4 or 5 on a
timely basis. Based on the Company's review of such ownership reports, no
officer, director or 10% beneficial owner of the Company failed to file
ownership reports on a timely basis for the fiscal year ended March 31, 2001.
Executive Compensation
The following table sets forth for the fiscal years ended March 31,
2001, 2000 and 1999 certain information as to the total remuneration paid by the
Company to the Chief Executive Officer and to the Executive Vice President of
the Company (the "Named Executive Officers"). Information in the table below has
been adjusted for the 5% stock dividend paid in June 1999. During the fiscal
year ended March 31, 2001, no other officer of the Company earned salary and
bonus which exceeded $100,000.
================ ======================================== ================================ =============
Long-Term Compensation
- ---------------- ---------------------------------------- -------------------------------- -------------
- ---------------- ---------------------------------------- ----------------------- -------- -------------
Annual Compensation (1) Awards Payout
- ---------------- ---------------------------------------- ----------------------- -------- -------------
- ---------------- -------- --------- -------- ------------ ---------- ------------ -------- -------------
Fiscal
years
ended Other Restricted All other
Name and March Salary Bonus Annual Stock Securities LTIP compensation
principal 31, ($) ($) Compensation Award(s) Underlying Payouts (3)
position (2) Options/SARs
================ ======== ========= ======== ============ ========== ============ ======== =============
- ---------------- -------- --------- -------- ------------ ---------- ------------ -------- -------------
Charles F. Finn 2001 $152,800 $16,000 -- -- -- -- $ --
Chairman, 2000 147,800 15,000 -- -- -- -- --
President and 1999 142,000 15,000 -- -- -- -- 7,688
Chief
Executive
Officer
- ---------------- -------- --------- -------- ------------ ---------- ------------ -------- -------------
- ---------------- -------- --------- -------- ------------ ---------- ------------ -------- -------------
Wanda 2001 $97,500 $13,000 -- -- -- -- $ --
Christopher-Finn, 2000 94,500 10,500 -- -- -- -- --
Executive Vice 1999 89,500 10,400 -- -- -- -- 4,953
President
================ ======== ========= ======== ============ ========== ============ ======== =============
<FN>
(1) No compensation has been deferred at the election of the executive.
Does not include benefits pursuant to the Company's Pension Plan.
See "Benefits."
(2) The Company also provides certain members of senior management with the use
of an automobile, membership dues and other personal benefits. The aggregate
amount of such other benefits provided did not exceed the lesser of $50,000
or 10% of total annual salary.
(3) Includes the market value at March 31 of shares of common stock allocated
to Mr. Finn and Ms. Christopher-Finn pursuant to the Bank's Employee Stock
Ownership Plan.
</FN>
Directors' Compensation
Fees. The Company's directors receive no fees for serving on the
Company's Board of Directors or committees of the Company. Each outside director
who served on the Board of Directors of the Bank during the fiscal year ended
March 31, 2001 received a monthly meeting fee of $789 and a monthly retainer of
$526. The monthly meeting fee is paid to the director only if the director
attends the meeting or has an excused absence. No additional fees were paid for
special meetings of the Board of Directors. In addition, the Company paid each
Director Emeritus up to two-thirds of the fees such Director Emeritus received
in the year prior to being appointed Director Emeritus, excluding committee
fees. During the fiscal year ended March 31, 2001, the members of the Executive
Committee received an annual fee of $2,000; however, Kenneth Rhode, Chairman of
the Board of Directors of the Bank, received a grandfathered executive committee
fee of $4,000. Members of the Loan Committee and Audit Committee received an
annual fee of $1,800. Directors who attend the quarterly meetings of the
Company's Asset Review Committee received a fee of $100 for each meeting
attended. The Chairman of the Board of Directors of the Bank and Chairman of the
Executive Committee received $12,850 in additional fees during the fiscal year
ended March 31, 2001. Mr. Finn did not receive any fees as Chairman of the Board
of the Company.
Stock Option Plan for Outside Directors. The Board of Directors of the
Bank adopted the 1993 Stock Option Plan for Outside Directors (the "Directors'
Plan") in connection with its conversion to stock form in 1993. The Directors'
Plan was ratified by the Bank's stockholders at the 1993 Annual Meeting. The
Directors' Plan authorizes the grant of non-statutory stock options for 36,018
shares (as adjusted) of common stock to non-employee directors of the Company,
as adjusted to reflect a 5% stock dividend, a 10% stock dividend and a
three-for-two stock split which were distributed June 10, 1999, June 10, 1998,
and June 12, 1997, respectively. The Directors' Plan is a self administering
plan that granted to Messrs. Rhode, Harpster, Retzler, and Massaro non-statutory
options to purchase 7,204, 5,467, 5,467 and 5,336 shares of Common Stock (as
adjusted), respectively. Grants of stock options were determined as follows:
options to purchase 6,267 shares (as adjusted) were granted to outside directors
with more than 15 years of service; options to purchase 5,467 shares (as
adjusted) were granted to each outside director with 5 to 15 years of service;
options to purchase 5,336 shares (as adjusted) were granted to outside directors
with less than 5 years of service; and options to purchase an additional 931
shares (as adjusted) were granted to the Chairman of the Board. The exercise
price of the options is equal to the fair market value of the shares of Common
Stock underlying such option on the date the option was granted, or $5.00 per
share (as adjusted) of Common Stock for options granted on the date of
completion of the Offering. All options granted under the Directors' Plan may be
exercised from time to time in whole or in part, and expire upon the earlier of
10 years following the date of grant or one year following the date the optionee
ceases to be a director.
Benefits
Pension Plan. The Bank makes available to all full-time employees who
have attained the age of 21 and completed one year of service with the Bank a
defined benefit pension plan. The pension plan provides for monthly payments to
or on behalf of each covered employee upon the employee's normal retirement date
(i.e., the first day of the month coincident with or next following the later of
age 65 or 5 years of participation). These payments are calculated in accordance
with a formula based on the employee's "average monthly compensation," which is
defined as the highest average of total compensation for five consecutive
calendar years of employment. The normal retirement benefit is equal to 29% of
the "average monthly compensation" up to the integration level, plus 51% of the
"average monthly compensation" in excess of the integration level, reduced for
less than 35 years of service. The normal form of benefit is a monthly income
payable for life. Optional forms of benefit are available.
Under the pension plan, the Bank makes an annual contribution for the
benefit of eligible employees computed on an actuarial basis. Employee benefits
under the plan vest as designated in the schedule below:
Completed Years Vested
of Employment Percentages
Fewer than 3 .................................... 0
3 but less than 4 ............................... 20%
4 but less than 5 ............................... 40%
5 but less than 6 ............................... 60%
6 but less than 7 ............................... 80%
7 or more ....................................... 100%
The following table illustrates regular annual allowance amounts at age
65 under the regular retirement benefit plan provisions available at various
levels of compensation and years of benefit service (figured on formula
described above):
Years of Benefit Service
Average Salary 10 15 20 25 30 35
$ 20,000 $ 1,811 $ 2,717 $ 3,622 $ 4,528 $ 5,433 $ 6,339
$ 30,000 $ 3,268 $ 4,902 $ 6,537 $ 8,171 $ 9,805 $11,439
$ 50,000 $ 6,183 $ 9,274 $12,365 $15,456 $18,548 $21,639
$ 80,000 $10,554 $15,831 $21,108 $26,385 $31,662 $37,939
$100,000 $13,468 $20,202 $27,937 $33,671 $40,405 $47,139
At March 31, 2001, Mr. Finn and Ms. Christopher-Finn had 37 years and 22
years of credited service under the pension plan, respectively.
Stock Option Plan. The Board of Directors of the Bank adopted the 1993
Incentive Stock Option Plan (the "Stock Plan") in connection with its conversion
to stock form in 1993. The Stock Plan was ratified by the Bank's stockholders at
the 1993 Annual Meeting. Set forth below is information concerning exercised and
unexercisable options held by the Named Executive Officers at March 31, 2001.
=========================================================================================================
AGGREGATED OPTION EXERCISES IN LAST FISCAL YEAR AND
FISCAL YEAR-END OPTION VALUES
=========================================================================================================
- ----------------------- ------------- -------------- -------------------- ---------------------
Value of
Shares Number of Unexercised
Acquired Unexercised In-The-Money
Upon Value Options at Options at Fiscal
Name Exercise Realized Fiscal Year-End Year-End (1)
-------------------- ---------------------
-------------------- ---------------------
Exercisable/Unexercisable Exercisable/Unexercisable
- ----------------------- ------------- -------------- -------------------- ---------------------
- ----------------------- ------------- -------------- -------------------- ---------------------
Charles F. Finn 3,300 $34,650 3,200/-- $ 41,402 /--
Wanda Christopher-Finn 2,100 $ 22,050 2,041/-- $ 26,406/--
======================= ============= ============== ==================== =====================
<FN>
(1) Equals the difference between the aggregate exercise price of such options
and the aggregate fair market value of the shares of common stock that would
be received upon exercise, assuming such exercise occurred on March 31, 2001
(based on the price of the last sale reported on the Nasdaq SmallCap Market
on March 31, 2001).
</FN>
Certain Transactions with the Company
Federal law and regulation generally requires that all loans or
extensions of credit to executive officers and directors must be made on
substantially the same terms, including interest rates and collateral, as those
prevailing at the time for comparable transactions with the general public and
must not involve more than the normal risk of repayment or present other
unfavorable features. However, recent regulations now permit executive officers
and directors to receive the same terms through benefit or compensation plans
that are widely available to other employees, as long as the director or
executive officer is not given preferential treatment compared to the other
participating employees. All loans made to a director or executive officer in
excess of the greater of $25,000 or 5% of the Company's capital and surplus (up
to a maximum of $500,000) must be approved in advance by a majority of the
disinterested members of the Board of Directors. All loans, the principal
balances of which exceeded $60,000 at any time during the fiscal year ended
March 31, 2001, made by the Company to executive officers, directors, immediate
family members of executive officers and directors, or organizations with which
executive officers and directors are affiliated, were made in the ordinary
course of business, on substantially the same terms including interest rates and
collateral, as those prevailing at the time for comparable transactions with
other persons.
Director Russell L. Harpster is a partner in the law firm of Henderson,
Harpster & Vanosdall of Ashland, Ohio, which has represented the Company in
certain legal matters since 1979. During the fiscal year ending March 31, 2001,
the Company paid $8,133 in legal fees to the law firm. No retainer was paid, and
the Company was billed for services performed at the firm's hourly rate.
PROPOSAL II--RATIFICATION OF APPOINTMENT OF AUDITORS
The Board of Directors of the Company has approved the engagement of
Grant Thornton LLP to be the Company's auditors for the fiscal year ending March
31, 2002, subject to the ratification of the engagement by the Company's
stockholders. At the Meeting, the stockholders will consider and vote on the
ratification of the engagement of Grant Thornton LLP for the Company's fiscal
year ending March 31, 2002. A representative of Grant Thornton LLP is expected
to attend the Meeting to respond to appropriate questions and to make a
statement if he so desires.
Set forth below is certain information concerning aggregate fees billed
for professional services rendered by Grant Thornton LLP during the fiscal year
ended March 31, 2001:
Audit Fees $ 50,000
Financial Information Systems
Design and Implementation Fees $ --
All Other Fees $ 20,525
The Audit Committee has considered whether the provision of non-audit
services, which relate primarily to tax services rendered, is compatible with
maintaining Grant Thornton LLP's independence. The Audit Committee concluded
that performing such services does not affect Grant Thornton LLP's independence
in performing its function as auditor of the Company.
In order to ratify the selection of Grant Thornton LLP as the auditors
for the fiscal year ending March 31, 2002, the proposal must receive at least a
majority of the votes cast, either in person or by proxy, in favor of such
ratification. The Board of Directors recommends a vote "FOR" the ratification of
Grant Thornton LLP as auditors for the 2002 fiscal year.
STOCKHOLDER PROPOSALS
In order to be eligible for inclusion in the Company's proxy materials
for next year's Annual Meeting of Stockholders, any stockholder proposal to take
action at such meeting must be received at the Company's executive office, 151
North Market Street, Wooster, Ohio 44691, no later than February 26, 2002. Any
such proposals shall be subject to the requirements of the proxy rules adopted
under the Exchange Act.
Under the Company's Bylaws, certain procedures are provided which a
stockholder must follow to nominate persons for election as directors or to
introduce an item of business at an annual meeting of stockholders. These
procedures provide, generally, that stockholders desiring to make nominations
for directors, or to bring a proper subject of business before the meeting, must
do so by a written notice timely received (generally not later than two weeks in
advance of such meeting for nominations for directors, or not later than 5 days
in advance of such meeting for other new business, subject to certain
exceptions) by the Secretary of the Company.
OTHER MATTERS
The Board of Directors is not aware of any business to come before the
Meeting other than the matters described above in the Proxy Statement. However,
if any matters should properly come before the Meeting, it is intended that
holders of the proxies will act in accordance with their best judgment.
MISCELLANEOUS
The cost of solicitation of proxies will be borne by the Company. The
Company will reimburse brokerage firms and other custodians, nominees and
fiduciaries for reasonable expenses incurred by them in sending proxy materials
to the beneficial owners of Common Stock. In addition to solicitations by mail,
directors, officers and regular employees of the Company may solicit proxies
personally or by telegraph or telephone without additional compensation. The
Company's 2001 Annual Report to Stockholders has been mailed to all stockholders
of record as of the close of business on June 14, 2001. Any stockholder who has
not received a copy of such Annual Report may obtain a copy by writing the
Company. Such Annual Report is not to be treated as a part of the proxy
solicitation material nor as having been incorporated herein by reference.
A COPY OF THE COMPANY'S ANNUAL REPORT ON FORM 10-KSB FOR THE FISCAL YEAR ENDED
MARCH 31, 2001, WILL BE FURNISHED WITHOUT CHARGE TO STOCKHOLDERS AS OF THE
RECORD DATE UPON WRITTEN REQUEST TO TODD J. TAPPEL, CORPORATE SECRETARY, WAYNE
SAVINGS BANCSHARES, INC., 151 NORTH MARKET STREET, WOOSTER, OHIO 44691.
BY ORDER OF THE BOARD OF DIRECTORS
/s/ Charles F. Finn
Charles F. Finn
Chairman, President and Chief
Executive Officer
Wooster, Ohio
June 26, 2001
WAYNE SAVINGS BANCSHARES, INC.
AUDIT COMMITTEE CHARTER
Organization
There shall be a committee of the board of directors to be known as the audit
committee. The audit committee shall be composed of directors who are
independent of the management of the Company and are free of any relationship
that, in the opinion of the board of directors, would interfere with their
exercise of independent judgment as a committee member.
Statement of Policy
The audit committee shall provide assistance to the corporate directors in
fulfilling their responsibility to the shareholders, potential shareholders, and
investment community relating to corporate accounting, reporting practices of
the Company, and the quality and integrity of the financial reports of the
Company. In doing so, it is the responsibility of the audit committee to
maintain free and open means of communication between the directors, the
independent auditors, the internal auditors, and the financial management of the
Company.
Composition
The audit committee shall be comprised of three or more directors as determined
by the board, each of whom shall be independent directors, and free from any
relationship that, in the opinion of the board, would interfere with the
exercise of his or her independent judgment. All members of the committee shall
have a working familiarity with basic finance and accounting practices, and at
least one member of the committee shall have accounting or related financial
management expertise. Committee members may enhance their familiarity with
finance and accounting by participating in educational programs conducted by the
Company or an outside consultant.
Frequency of Meetings
The audit committee shall meet at least four times annually, or more frequently
as circumstances dictate.
Responsibilities
In carrying out its responsibilities, the audit committee believes its policies
and procedures should remain flexible, in order to best react to changing
conditions and to ensure to the directors and shareholders that the corporate
accounting and reporting practices of the Company are in accordance with all
requirements and are of the highest quality.
In carrying out these responsibilities, the audit committee will:
o Review and update this charter periodically, at least annually, as
conditions dictate.
o Review and recommend to the directors the independent auditors to be
selected to audit the financial statements of the Company and its
divisions and subsidiaries.
o Meet with the independent auditors and financial management of the
Company to review the scope of the proposed audit for the current
year and the audit procedures to be utilized, and at the conclusion
thereof, review such audit, including any comments or recommendations
of the independent auditors.
o Review with the independent auditors, the Company's internal auditor,
and financial accounting personnel, the adequacy and effectiveness of
the accounting and financial controls of the Company, and elicit any
recommendations for the improvement of such internal control
procedures or particular areas where new or more detailed controls
procedures are desirable. Particular emphasis should be given to the
adequacy of such internal controls to expose any payments,
transactions, or procedures that might be deemed illegal or otherwise
improper. Further, the committee periodically should review Company
policy statements to determine their adherence to the code of
conduct.
o Review the internal audit function of the Company, including the
independence and authority of its reporting obligations, the proposed
audit plans for the coming year, and the coordination of such plans
with the independent auditors.
o Receive prior to each meeting, a summary of findings from completed
internal audits and a progress report on the proposed internal audit
plan, with explanations for any deviations from the original plan.
o Review the financial statements contained in the annual report to
shareholders with management and the independent auditors to
determine that the independent auditors are satisfied with the
disclosure and content of the financial statements to be presented to
the shareholders. Any changes in accounting principles should be
reviewed.
o Provide sufficient opportunity for the internal and independent
auditors to meet with the members of the audit committee without
members of management present. Among the items to be discussed in
these meetings are the independent auditors' evaluation of the
Company's financial, accounting, and auditing personnel, and the
cooperation that the independent auditors received during the course
of the audit.
o Review accounting and financial human resources and succession
planning within the Company.
o Submit the minutes of all meetings of the audit committee to, or
discuss the matters discussed at each committee meeting with, the
board of directors.
o Investigate any matter brought to its attention within the scope of
its duties, with the power to retain outside counsel for this purpose
if, in its judgment, that is appropriate.
WAYNE SAVINGS BANCSHARES, INC.
ANNUAL MEETING OF STOCKHOLDERS
July 26, 2001
The undersigned hereby appoints the official proxy committee consisting
of four members of the Board of Directors, who are not named as nominees on the
reverse side, with full powers of substitution to act as attorney and proxy for
the undersigned, and to vote all shares of Common Stock of Wayne Savings
Bancshares, Inc. which the undersigned is entitled to vote, at the Annual
Meeting of Stockholders, to be held at the Greenbriar Conference Centre, 50
Riffel Road, Wooster, Ohio, on July 26, 2001, at 10:00 a.m. Ohio time, and at
any and all adjournments thereof, as indicated on the reverse side.
PLEASE SIGN, DATE AND MAIL THIS PROXY CARD PROMPTLY USING THE ENCLOSED
POSTAGE-PAID ENVELOPE.
This proxy is revocable and will be voted as directed, but if no
instructions are specified, this proxy will be voted FOR each of the proposals
listed. If any other business is presented at the meeting, this proxy will be
voted by those named in this proxy in their best judgment.
This proxy is solicited by the Board of Directors.
THE BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR" EACH OF THE LISTED PROPOSALS.
FOR WITHHOLD
--- --------
1 The election as directors of all nominees _ _
listed below (except as marked to the |_| |_|
contrary below)
Donald E. Massaro
Russell L. Harpster
Terry A. Gardner
INSTRUCTION: To withhold your vote for any
individual nominee, mark "For
All Except" and write the name
of the nominee(s) in the space
provided below.
FOR AGAINST ABSTAIN
--- ------- -------
_ _ _
2 The ratification of the appointment of |_| |_| |_|
Grant Thornton LLP as auditors for the
fiscal year ending March 31, 2002
Should the undersigned be present and elect to vote at the Meeting or at any
adjournment thereof and after notification to the Secretary of the Company at
the Meeting of the stockholder's decision to terminate this proxy, then the
power of said attorneys and proxies shall be deemed terminated and of no further
force and effect. This proxy may also be revoked by sending written notice to
the Secretary of the Company at the address set forth on the Notice of Annual
Meeting of Stockholders, or by the filing of a later proxy prior to a vote being
taken on a particular proposal at the Meeting.
The undersigned acknowledges receipt from Wayne Savings Bancshares, Inc. prior
to the execution of this proxy of notice of the Meeting, a proxy statement dated
June 26, 2001, and audited financial statements.
_
Dated: _________________, 2001 |_| Check Box if You Plan
to Attend Annual Meeting
_______________________________ ________________________________
PRINT NAME OF STOCKHOLDER PRINT NAME OF STOCKHOLDER
_______________________________ ________________________________
SIGNATURE OF STOCKHOLDER SIGNATURE OF STOCKHOLDER
Please sign exactly as your name appears on this card. When signing as
attorney, executor, administrator, trustee or guardian, please give your full
title. If shares are held jointly, each holder may sign but only one signature
is required.