President and CEO
“Credit quality remains outstanding as a result of our strong credit culture and diverse customer mix. We remain optimistic about our opportunities to grow as an organization and promote shareholder value today, tomorrow, and years to come.”
2023 Select Business Highlights
Wayne Savings Bancshares, Inc. and Main Street Financial Services Corporation announce a merger of equals transaction onFebruary 23, 2023 . The combined company will have a pro forma assets exceeding$1.3 billion and 18 branches fromWooster, Ohio toWheeling, West Virginia .Wayne Savings Bancshares, Inc. , the holding company parent ofWayne Savings Community Bank , announced onJanuary 30, 2023 , that it was named to the 2023 OTCQX Best 50. InJanuary 2023 , OTCQX rankedWayne Savings Bancshares, Inc. 28th on its 2023 OTCQX Best 50. Companies in the 2023 OTCQX Best 50 were ranked based on their performance during the 2022 calendar year.- Net loan balances increased to
$620.1 million atMarch 31, 2023 , compared to$476.6 million atMarch 31, 2022 , or 30.1% growth, comprised mainly of$93.4 million of commercial loans secured by real estate and$46.9 million of one-to-four residential mortgage loans. - Wayne Savings deposits increased
$67.1 million , or 11.9%, to$629.7 million atMarch 31, 2023 , compared to$562.6 million atMarch 31, 2022 , primarily due to the growth in certificates of deposits of$97.5 million , partially offset by a decrease in demand deposits of$29.3 million . Wayne Savings Bancshares, Inc. declared a cash dividend$0.23 per share for the quarter endingMarch 31, 2023 , onMarch 30, 2023 . The quarterly cash dividend will be paid onMay 3, 2023 , to the stockholders of record as ofApril 19, 2023 .
First Quarter 2023 Financial Highlights
- Net interest income was
$5.9 million for the quarter endedMarch 31, 2023 , an increase of$898,000 , or 18.1%, compared to the quarter endedMarch 31, 2022 . The net interest margin increased from 3.22% for the quarter endedMarch 31, 2022 , to 3.29% for the comparable period of 2023. Interest income on loans increased by$2.3 million , or 45.8%, primarily related to the$145.6 million increase in average loan balances to$607.5 million for the quarter endedMarch 31, 2023 , from$461.9 million for the same period of the prior year. Yields on investment securities and interest-earning cash balances increased 105 basis points from 1.40% to 2.45% atMarch 31, 2023 . The average balances on investment securities and interest-earning deposits decreased$48.6 million . - Provision for credit losses was
$218,000 in the first quarter of 2023 under the newly adopted ASU 2016-13 Current Expected Credit Losses (CECL) method the Bank adopted onJanuary 1, 2023 . The adoption of CECL required a$113,000 adjustment to equity, net of taxes. In 2022 the Provision for loan losses for the first quarter was$174,000 using the incurred loss method. - Noninterest income totaled
$603,000 , a decrease of$262,000 , or 30.3%, from$865,000 for the quarter endedMarch 2022 , caused by a gain of$229,000 on the sale of foreclosed assets held for sale in the 2022 quarter. - Noninterest expense totaled
$3.4 million for the three-month period endedMarch 31, 2023 , an increase of$293,000 , or 9.4%, compared to the three months endedMarch 31, 2022 , primarily due to increased salaries and employee benefits as the Company added additional sales and sales support staff to facilitate loan and deposit growth and increased occupancy and equipment expense as the Company continues to expand into new market areas. The Company’s efficiency ratio was 52.6% for the three-month period endedMarch 31, 2023 , compared to 53.3% for the same period in 2022.
At
The allowance for loan losses was
Total nonperforming loans declined to
Total liabilities increased
Total stockholders’ equity increased by
Established in 1899,
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:
Senior Vice President Chief Financial Officer
(330) 264-5767
Selected Condensed Consolidated Financial Data | |||||||||||||||||
(Dollars in thousands, except share data - unaudited) | |||||||||||||||||
March | December | September | June | ||||||||||||||
2023 | 2022 | 2022 | 2022 | ||||||||||||||
Interest and dividend income | $ | 7,901 | $ | 7,518 | $ | 6,892 | $ | 5,889 | |||||||||
Interest expense | 2,050 | 1,248 | 670 | 564 | |||||||||||||
Net interest income | 5,851 | 6,270 | 6,222 | 5,325 | |||||||||||||
Provision for credit losses* | 218 | 381 | 410 | 257 | |||||||||||||
Net interest income after | |||||||||||||||||
provision for credit losses* | 5,633 | 5,889 | 5,812 | 5,068 | |||||||||||||
Non-interest income | 603 | 631 | 636 | 599 | |||||||||||||
Non-interest expense | 3,394 | 3,508 | 3,350 | 3,191 | |||||||||||||
Income before federal income taxes | 2,842 | 3,012 | 3,098 | 2,476 | |||||||||||||
Provision for federal income taxes | 563 | 603 | 589 | 457 | |||||||||||||
Net income | $ | 2,279 | $ | 2,409 | $ | 2,509 | $ | 2,019 | |||||||||
Earnings per share - basic | $ | 1.04 | $ | 1.09 | $ | 1.14 | $ | 0.88 | |||||||||
Earnings per share - diluted | $ | 1.03 | $ | 1.09 | $ | 1.13 | $ | 0.87 | |||||||||
Dividends per share | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.23 | |||||||||
Return on average assets | 1.23 | % | 1.36 | % | 1.48 | % | 1.23 | % | |||||||||
Return on average equity | 19.58 | % | 22.87 | % | 22.85 | % | 17.37 | % | |||||||||
Shares outstanding | 2,196,457 | 2,192,738 | 2,191,338 | 2,185,688 | |||||||||||||
Book value per share | $ | 21.82 | $ | 20.40 | $ | 18.94 | $ | 19.33 | |||||||||
March | December | September | June | ||||||||||||||
2022 | 2021 | 2021 | 2021 | ||||||||||||||
Interest and dividend income | $ | 5,517 | $ | 5,502 | $ | 5,589 | $ | 5,364 | |||||||||
Interest expense | 564 | 592 | 617 | 630 | |||||||||||||
Net interest income | 4,953 | 4,910 | 4,972 | 4,734 | |||||||||||||
Provision for loan losses* | 174 | 128 | 177 | 278 | |||||||||||||
Net interest income after | |||||||||||||||||
provision for loan losses* | 4,779 | 4,782 | 4,795 | 4,456 | |||||||||||||
Non-interest income | 865 | 598 | 663 | 737 | |||||||||||||
Non-interest expense | 3,101 | 3,156 | 3,057 | 2,975 | |||||||||||||
Income before federal income taxes | 2,543 | 2,224 | 2,401 | 2,218 | |||||||||||||
Provision for federal income taxes | 476 | 428 | 449 | 416 | |||||||||||||
Net income | $ | 2,067 | $ | 1,796 | $ | 1,952 | $ | 1,802 | |||||||||
Earnings per share - basic | $ | 0.87 | $ | 0.76 | $ | 0.81 | $ | 0.73 | |||||||||
Earnings per share - diluted | $ | 0.86 | $ | 0.75 | $ | 0.80 | $ | 0.72 | |||||||||
Dividends per share | $ | 0.23 | $ | 0.21 | $ | 0.21 | $ | 0.21 | |||||||||
Return on average assets | 1.28 | % | 1.12 | % | 1.23 | % | 1.15 | % | |||||||||
Return on average equity | 15.44 | % | 13.48 | % | 14.76 | % | 13.53 | % | |||||||||
Shares outstanding | 2,369,886 | 2,365,268 | 2,380,374 | 2,401,411 | |||||||||||||
Book value per share | $ | 21.12 | $ | 22.67 | $ | 22.25 | $ | 21.66 | |||||||||
*Adopted ASU 2016-13 during the first quarter 2023: therefore, prior periods provision amount reflects the incurred loss method. | |||||||||||||||||
Condensed Consolidated Statements of Income | |||||
(Dollars in thousands, except share data - unaudited) | |||||
Three Months Ended | |||||
2023 | 2022 | ||||
Interest income | $ | 7,901 | $ | 5,517 | |
Interest expense | 2,050 | 564 | |||
Net interest income | 5,851 | 4,953 | |||
Provision for credit losses * | 218 | 174 | |||
Net interest income after provision for loan losses* | 5,633 | 4,779 | |||
Non-interest income | 603 | 865 | |||
Non-interest expense | |||||
Salaries and employee benefits | 1,911 | 1,783 | |||
Net occupancy and equipment expense | 584 | 478 | |||
Federal deposit insurance premiums | 92 | 49 | |||
Franchise taxes | 100 | 116 | |||
Advertising and marketing | 55 | 41 | |||
Legal | 12 | 21 | |||
Professional fees | 94 | 113 | |||
ATM network | 96 | 97 | |||
Auditing and accounting | 57 | 61 | |||
Other | 393 | 342 | |||
Total non-interest expense | 3,394 | 3,101 | |||
Income before federal income taxes | 2,842 | 2,543 | |||
Provision for federal income taxes | 563 | 476 | |||
Net income | $ | 2,279 | $ | 2,067 | |
Earnings per share | |||||
Basic | $ | 1.04 | $ | 0.87 | |
Diluted | $ | 1.03 | $ | 0.86 | |
*Adopted ASU 2016-13 during the first quarter 2023: therefore, prior periods provision amount reflects the incurred loss method. | |||||
Condensed Consolidated Balance Sheets | ||||||
(Dollars in thousands, except share data - unaudited) | ||||||
ASSETS | ||||||
Cash and cash equivalents | $ | 10,122 | $ | 13,799 | ||
Securities, net (1) | 91,931 | 91,769 | ||||
Loans receivable, net | 620,118 | 594,931 | ||||
3,571 | 3,322 | |||||
Premises & equipment, net | 5,054 | 5,183 | ||||
Bank-owned life insurance | 11,499 | 11,434 | ||||
Other assets | 10,329 | 9,335 | ||||
TOTAL ASSETS | $ | 752,624 | $ | 729,773 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Deposit accounts | $ | 629,712 | $ | 605,834 | ||
Other short-term borrowings | 13,672 | 14,776 | ||||
55,500 | 58,500 | |||||
Accrued interest payable and other liabilities | 5,812 | 5,933 | ||||
TOTAL LIABILITIES | 704,696 | 685,043 | ||||
Common stock (3,978,731 shares of | 398 | 398 | ||||
Additional paid-in capital | 36,597 | 36,584 | ||||
Retained earnings | 51,306 | 49,645 | ||||
Treasury Stock, at cost - 1,782,274 shares and 1,785,993 shares | ||||||
at | (30,400) | (30,459) | ||||
Accumulated other comprehensive loss | (9,973) | (11,438) | ||||
TOTAL STOCKHOLDERS' EQUITY | 47,928 | 44,730 | ||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 752,624 | $ | 729,773 | ||
(1) Includes available-for-sale and held-to-maturity classifications. | ||||||
Note: The | ||||||
Source:
2023 GlobeNewswire, Inc., source