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CST: 18/11/2019 06:25:47   

Wayne Savings Bancshares, Inc. Announces Seventh Consecutive Quarter of Record Earnings

220 Days ago

WOOSTER, Ohio, April 11, 2019 (GLOBE NEWSWIRE) -- Wayne Savings Bancshares, Inc. (OTCQX: WAYN), (the “Company”), the holding company parent of Wayne Savings Community Bank, reported net income (unaudited) of $1,567,000 or $0.58 per common share for the quarter ended March 31, 2019, an increase of $602,000 or 62%, compared to $965,000 or $0.36 per common share for the quarter ended March 31, 2018. The increase in net income was due to an increase in net interest income, a decrease in provision for loan losses, an increase in noninterest income, and a decrease in non-interest expense.  The return on average equity and return on average assets for the first quarter of 2019 was 13.76% and 1.32%, respectively, compared to 9.23% and 0.86%, respectively, for the same period in 2018.

President and CEO James R. VanSickle commented, “We are thrilled to report yet another quarter of record earnings for our shareholders to start 2019.  Our excellent performance is the result of the growth in the commercial loan portfolio and continued improvement in operational efficiency.  Wayne Savings has the good fortune of being located in a region with a robust economy and organized under a guiding principle to help others succeed.” 

First Quarter 2019 Business Highlights

  • Net interest income was $4.0 million for the quarter ended March 31, 2019, an increase of $271,000, or 7.3%, compared to the quarter ended March 31, 2018.  The net interest margin increased from 3.50% for the quarter ended March 31, 2018, to 3.51% for the comparable period of 2019.   The net interest margin increase was the result of an increase of 30 basis points in the average yield on interest-earning assets and an increase of 29 basis points in the average cost of interest-bearing liabilities.
     
  • Provision for loan losses was $84,000 in the first quarter of 2019 compared to $120,000 for the period ending March 31, 2018.  This decrease was a result of declining balances requiring specific reserves from the receipt of customer payments. 

  • Noninterest expense totaled $2.6 million for the three-month period ended March 31, 2019, a decrease of $393,000, or 13.3%, compared to the three months ended March 31, 2018, primarily due to reduced stockholder expenses from no proxy contest in 2019.  The Company’s efficiency ratio improved from March 2018 of 69.8% to 56.0% as of March 31, 2019. 

  • On March 29, 2019, the Company announced another dividend increase to $0.17 per share, payable May 1, 2019, to stockholders of record as of April 17, 2019.  This represents a 55% increase over the March 2018 dividend of $0.11 per share. 

March 31, 2019 Financial Condition

At March 31, 2019, the Company had total assets of $478.2 million, an increase of $5.3 million, from total assets at December 31, 2018. The increase in total assets includes a $4.1 million increase in net loans compared to December 31, 2018, primarily due to an increase in commercial loans, and an increase in cash and cash equivalents of $2.0 million, and a decrease in investment securities of $1.4 million.  Short-term advances increased $1.1 million being used to partially fund the aforementioned asset growth.  The remaining asset growth was funded with deposits of $4.1 million due mainly to newly offered certificate of deposits.

The allowance for loan losses increased from $3.4 million at December 31, 2018, to $3.5 million at March 31, 2019.  The allowance for loan losses and the related provision for loan losses is based on management’s judgment and evaluation of the loan portfolio.  Management believes the current allowance for loan losses is adequate, however, changing economic and other conditions may require future adjustments to the allowance for loan losses.

Total nonperforming loans increased from $1.8 million at December 31, 2018, to $1.9 million for the quarter ended March 31, 2019.  Past due loan balances of 30 days and more remained unchanged at $1.6 million for both March 31, 2019 and December 31, 2018.

Established in 1899, Wayne Savings Community Bank, the wholly owned subsidiary of Wayne Savings Bancshares, Inc., has eleven full-service banking locations in the communities of Wooster, Ashland, Millersburg, Rittman, Lodi, North Canton, and Creston, Ohio. The Bank also has a loan production office in Poland Ohio. Additional information about Wayne Savings Community Bank is available at www.waynesavings.com.

Forward-Looking-Statements
This release contains forward-looking statements that are not historical facts and that are intended to be
forward-looking statements as that term is defined by the Private Securities Litigation Reform Act of 1995.   These forward-looking statements may include, but are not limited to, statements about the Company s plans, objectives, expectations and intentions and other statements contained in this release that are not historical facts and pertain to the Company s future operating results.   When used in this release, the words expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions are generally intended to identify forward-looking statements.   Actual results may differ materially from the results discussed in these forward-looking statements, because such statements are inherently subject to significant assumptions, risks and uncertainties, many of which are difficult to predict and are generally beyond the Company s control.   These include but are not limited to: the possibility of adverse economic developments that may, among other things, increase default and delinquency risks in the Company s loan portfolios; shifts in interest rates; shifts in the rate of inflation; shifts in the demand for the Company s loan and other products; unforeseen increases in costs and expenses; lower-than-expected revenue or cost savings in connection with acquisitions; changes in accounting policies; changes in the monetary and fiscal policies of the federal government; and changes in laws, regulations and the competitive environment.   Unless legally required, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information:
Myron Swartzentruber
Senior Vice President Chief Financial Officer
(330) 264-5767

WAYNE SAVINGS BANCSHARES, INC.
Selected Condensed Consolidated Financial Data
(Dollars in thousands, except per share data - unaudited)
                 
                 
    March   December   September   June
     2019     2018     2018     2018 
                 
Interest and dividend income   $   4,822     $   4,737     $   4,590     $   4,436  
Interest expense       815         734         640         541  
Net interest income       4,007         4,003         3,950         3,895  
Provision for loan losses       84         90         90         218  
Net interest income after                
provision for loan losses       3,923         3,913         3,860         3,677  
Non-interest income       567         524         611         609  
Non-interest expense       2,559         2,520         2,738         2,846  
Income before federal income taxes       1,931         1,917         1,733         1,440  
Provision for federal income taxes       364         356         315         236  
Net income   $   1,567     $   1,561     $   1,418     $   1,204  
                 
Earnings per share - basic and diluted   $   0.58     $   0.58     $   0.53     $   0.45  
Dividends per share   $   0.17     $   0.16     $   0.15     $   0.11  
Return on average assets     1.32%       1.34%       1.22%       1.05%  
Return on average equity     13.76%       14.23%       13.12%       11.40%  
Shares outstanding       2,695,933         2,696,844         2,705,844         2,705,844  
Book value per share   $   17.17     $   16.64     $   15.98     $   15.70  
                 
                 
    March   December   September   June
    2018
  2017
  2017
  2017
                 
Interest and dividend income   $   4,220     $   4,202     $   4,154     $   4,095  
Interest expense       484         482         491         499  
Net interest income       3,736         3,720         3,663         3,596  
Provision for loan losses       120         92         99         83  
Net interest income after                
provision for loan losses       3,616         3,628         3,564         3,513  
Non-interest income       493         470         548         640  
Non-interest expense       2,952         2,782         2,915         3,101  
Income before federal income taxes       1,157         1,316         1,197         1,052  
Provision for federal income taxes       192         394         342         291  
Net income   $   965     $   922     $   855     $   761  
                 
Earnings per share - basic and diluted   $   0.36     $   0.34     $   0.31     $   0.27  
Dividends per share   $   0.11     $   0.10     $   0.09     $   0.09  
Return on average assets     0.86%       0.81%       0.77%       0.68%  
Return on average equity     9.23%       8.66%       8.06%       7.26%  
Shares outstanding       2,705,844         2,705,844         2,781,839         2,781,839  
Book value per share   $   15.39     $   15.37     $   15.31     $   15.11  
                 


WAYNE SAVINGS BANCSHARES, INC.    
Condensed Consolidated Statements of Income    
(Dollars in thousands, except per share data - unaudited)    
           
           
  Year-to-Date    
  March 31,   Percentage
   2019    2018   change
           
Interest income $   4,822   $   4,220   14.3 %
Interest expense     815       484   68.4 %
Net interest income     4,007       3,736   7.3 %
Provision for loan losses     84       120   (30.0 )%
Net interest income after provision for loan losses     3,923       3,616   8.5 %
Non-interest income     567       493   15.0 %
Non-interest expense          
Salaries and employee benefits     1,454       1,546   (6.0 )%
Net occupancy and equipment expense     560       564   (0.7 )%
Franchise taxes     104       96   8.3 %
Advertising and marketing     43       98   (56.1 )%
Legal     16       73   (78.1 )%
Professional fees     24       39   (38.5 )%
Auditing and accounting     44       65   (32.3 )%
Stockholder expense     15       126   (88.1 )%
Other     299       345   (13.3 )%
Total non-interest expense     2,559       2,952   (13.3 )%
Income before federal income taxes     1,931       1,157   66.9 %
Provision for federal income taxes     364       192   89.6 %
Net income $   1,567   $   965   62.4 %
           
Earnings per share          
Basic and diluted $   0.58   $   0.36    
           


WAYNE SAVINGS BANCSHARES, INC.
Condensed Consolidated Balance Sheets
(Dollars in thousands, except per share data - unaudited)
  March 31, 2019   December 31, 2018
ASSETS      
       
Cash and cash equivalents $   13,126     $   11,161  
Investment securities, net (1)     57,308         58,705  
Loans held for sale     406         213  
Loans receivable, net     382,067         377,930  
Federal Home Loan Bank stock     4,226         4,226  
Premises & equipment     5,449         5,406  
Bank-owned life insurance     10,434         10,368  
Other assets     5,205         4,878  
TOTAL ASSETS $   478,221     $   472,887  
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
       
Deposit accounts $   391,554     $   387,449  
Other short-term borrowings     8,317         7,172  
Federal Home Loan Bank advances     27,700         28,500  
Accrued interest payable and other liabilities     4,354         4,888  
TOTAL LIABILITIES     431,925         428,009  
       
       
Common stock (3,978,731 shares of $.10 par value issued)     398         398  
Additional paid-in capital     36,167         36,152  
Retained earnings     29,263         28,290  
Shares acquired by ESOP     (127 )       (142 )
Treasury Stock, at cost - 1,282,798 shares and 1,281,887 shares      
at March 31, 2019 and December 31, 2018, respectively.     (18,562 )       (18,543 )
Accumulated other comprehensive loss     (843 )       (1,277 )
TOTAL STOCKHOLDERS' EQUITY     46,296         44,878  
       
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $   478,221     $   472,887  
       
(1)  Includes held-to-maturity classifications.
Note: The December 31, 2018 Condensed Consolidated Balance Sheet has been derived from the audited Consolidated Balance Sheet as of that date.

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