Wayne Savings Bancshares, Inc. Announces Record Earnings for the Quarter ended September 30, 2018

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WOOSTER, Ohio, Oct. 12, 2018 (GLOBE NEWSWIRE) -- Wayne Savings Bancshares, Inc. (OTCQX: WAYN), (the “Company”), the holding company parent of Wayne Savings Community Bank, reported net income (unaudited) of $1.4 million, or $0.53 per common share, for the quarter ended September 30, 2018.  This represents an increase of $563,000, or 65.8%, compared to $855,000, or $0.31 per common share, for the quarter ended September 30, 2017. The increase in net income was due to an increase in net interest income, an increase in other income and a decrease in noninterest expenses.   The return on average equity and return on average assets for the third quarter of 2018 were 13.12% and 1.22%, respectively, compared to 8.06% and 0.77%, respectively, for the same period in 2017.

President and CEO James R. VanSickle commented, “We are pleased to announce a fifth consecutive quarter of record earnings for our shareholders.  Our 13.12% annualized return on average equity, 1.22% annualized return on average assets and an efficiency ratio of 60.03% are just a few among many highlights for the quarter ending September 30, 2018.  Our outstanding team continues to work diligently at delivering great results for both our shareholders and customers. We truly appreciate the support of our customers, staff and shareholders as we continue to execute our plan to become a top-performing community bank.”  

The Company, reported net income (unaudited) of $3.6 million, or $1.34 per common share, for the nine months ended September 30, 2018, an increase of $1.4 million or 64.0%, compared to $2.2 million, or $0.79 per common share, for the same period ended September 30, 2017. The increase in net income was due to an increase in net interest income, a decrease in noninterest expenses and a decrease in federal income tax expense partially offset by an increase in provision for loan losses.  The return on average equity and return on average assets for the year-to-date period ended September 30, 2018 were 11.27% and 1.05%, respectively, compared to 6.96% and 0.65%, respectively, for the same period in 2017.

Net income for the nine months ended September 30, 2018 was also negatively impacted by a proxy contest for the election of directors at the 2018 annual shareholders meeting. The proxy contest expenses, which were included in noninterest expense, totaled $164,000 for the nine months ended September 30, 2018 and $420,000 for the same period in 2017.  The return on average equity and return on assets adjusted for the proxy expenses for the nine months of 2018 would have been 11.58% and 1.08%, respectively, compared to 7.84% and 0.74%, respectively for the same period in 2017. 

At September 30, 2018, the Company had total assets of $471.5 million, an increase of $31.7 million, from total assets at December 31, 2017. The increase in total assets was primarily due to an $23.3 million increase in net loans compared to December 31, 2017.  Loan balances generated from commercial relationships increased $21.8 million, or a 11.6% increase over the December 2017 balances, most of which was secured by real estate property. 

The allowance for loan losses was $2.9 million at December 31, 2017 and increased to $3.3 million at September 30, 2018 due to portfolio growth and related increased specific reserve requirements for classified credits in 2018.  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 remained at $1.9 million for both December 31, 2017 and September 30, 2018.  

Total liabilities increased from $398.2 at December 31, 2017 to $428.2 million at September 30, 2018 mainly due to increased Federal Home Loan Bank advances and deposit growth.  The deposit growth was primarily due to newly offered Platinum checking balances introduced to the market in the fourth quarter of 2017which totaled $38.1 million at September 30, 2018.  These new high-interest checking products were partially offset with declines in saving, money market and certificate of deposit balances as existing customers also chose the high-interest Platinum product. The Company is continuing to enhance its deposit products in an effort to serve its customers and increase deposit balances.

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. Additional information about Wayne Savings Community Bank is available at .

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

 

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Globe Newswire: 14:49 GMT Friday 12th October 2018

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