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Press release content from Globe Newswire. The AP news staff was not involved in its creation.

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

April 11, 2019

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, Percentag e 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, December 2019 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.