The Company reported net income (unaudited) of
President and CEO
2023 Select Business Highlights
Wayne Savings Bancshares, Inc. and Main Street Financial Services Corporation announced 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 . The transaction is awaiting the approval of both corporations’ shareholders and all customary regulatory approvals. The transaction is expected to close during the fourth quarter of 2023.
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
$637.5 million atJune 30, 2023 , compared to$514.9 million atJune 30, 2022 , or 23.8% growth, comprised mainly of$77.0 million of commercial loans secured by real estate and$40.9 million of one-to-four residential mortgage loans.
- Wayne Savings deposits increased
$73.5 million , or 12.9%, to$641.2 million atJune 30, 2023 , compared to$567.7 million atJune 30, 2022 , primarily due to the growth in brokered certificates of deposits of$81.0 million and growth in our relationship certificates of deposits. This was partially offset by a decrease in “Platinum” checking accounts of$36.7 million .
Wayne Savings Bancshares, Inc. declared a cash dividend$0.23 per share for the quarter endingJune 30, 2023 , onJune 29, 2023 . The quarterly cash dividend will be paid onAugust 2, 2023 , to the stockholders of record as ofJuly 19, 2023 .
- Wayne Savings continues to look for opportunities to create a larger footprint to expand our customer base. Wayne Savings opened a new office in
Dalton during the first quarter of 2023. We have received regulatory approval to open a second office in 2023 inCarrollton, Ohio to be fully operational during the second half of 2023.
Second Quarter 2023 Financial Highlights
Net interest income was
Interest income on loans increased by
Investment securities and interest-earning cash balance yields increased 63 basis points from 1.74% to 2.37% at
Deposit interest expense increased
Borrowings interest expense increased
- Provision for credit losses was
$170,000 in the second quarter of 2023 under the newly adopted Accounting Standards Update (ASU) 2016-13 Current Expected Credit Losses (CECL) method the Bank adopted onJanuary 1, 2023 . In 2022 the provision for loan losses for the second quarter was$257,000 using the incurred loss method.
- Noninterest income totaled
$706,000 , an increase of$107,000 , or 17.9%, from$599,000 for the quarter endedJune 2022 .
- Noninterest expense totaled
$3.9 million for the three-month period endedJune 30, 2023 , an increase of$758,000 , or 23.8%, compared to the three months endedJune 30, 2022 , primarily due to merger related expenses, 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 61.6% for the three-month period endedJune 30, 2023 , compared to 53.9% for the same period in 2022. Excluding merger related expenses for the merger (non-GAAP), noninterest expense increased$321,000 from the second quarter of 2022 to the second quarter of 2023 and the Company’s efficiency ratio was 54.8%.
2023 Year-to-Date Business Highlights
Net interest income was
Interest income on loans increased by
Interest income on investment securities and interest earning cash balances increased by
Deposit interest expense increased
Borrowings interest expense increased
- Net loan balances increased from
$594.9 million atDecember 31, 2022 , to$637.5 million atJune 30, 2023 , an increase of$42.5 million , or 7.1% of annualized growth consisting mainly of commercial real estate loans and residential mortgage loans.
- Provision for credit losses was
$388,000 for the six-month period endingJune 30, 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 same period was$431,000 using the incurred loss method.
- Noninterest income totaled
$1.3 million , a decrease of$155,000 , or 10.6%, from$1.5 million for the six-month period endedJune 30, 2022 , caused by a gain of$229,000 on the sale of foreclosed assets held for sale recorded during the six-month period endedJune 30, 2022 . - Noninterest expense totaled
$7.3 million for the year-to-date period endedJune 30, 2023 , an increase of$1.1 million , or 16.7%, compared to theJune 30, 2022 six-month period. The increase was primarily due to the merger expenses for the merger and an increase in salaries and employee benefits expense. The Company’s efficiency ratio was 57.1% for the six-month period endedJune 30, 2023 , compared to 53.6% for the same period in 2022. Excluding the merger expenses (non-GAAP), the Company’s noninterest expense increased$614,000 from the second quarter of 2022 to the second quarter of 2023 and the Company’s efficiency ratio was 53.7%.
At
The allowance for credit losses was
Total nonperforming loans declined to
Total liabilities increased
Total stockholders’ equity increased by
Established in 1899,
Non-GAAP Disclosure
This press release includes disclosures of the Company’s return on average equity, return on average assets, net income, and efficiency ratios which are excluding costs related to merger activities which are financial measures not prepared in accordance with generally accounting principles in
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
Condensed Consolidated Balance Sheets | ||||||
(Dollars in thousands, except share data - unaudited) | ||||||
ASSETS | ||||||
Cash and cash equivalents | $ | 11,275 | $ | 13,799 | ||
Securities, net (1) | 89,102 | 91,769 | ||||
Loans receivable, net | 637,454 | 594,931 | ||||
5,630 | 3,322 | |||||
Premises & equipment, net | 5,039 | 5,183 | ||||
Bank-owned life insurance | 11,567 | 11,434 | ||||
Other assets | 10,761 | 9,335 | ||||
TOTAL ASSETS | $ | 770,828 | $ | 729,773 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Deposit accounts | $ | 641,187 | $ | 605,834 | ||
Other short-term borrowings | 10,874 | 14,776 | ||||
65,500 | 58,500 | |||||
Accrued interest payable and other liabilities | 4,749 | 5,933 | ||||
TOTAL LIABILITIES | 722,310 | 685,043 | ||||
Common stock (3,978,731 shares of | 398 | 398 | ||||
Additional paid-in capital | 36,603 | 36,584 | ||||
Retained earnings | 52,543 | 49,645 | ||||
Treasury Stock, at cost - 1,779,324 shares and 1,785,993 shares | ||||||
at | (30,353) | (30,459) | ||||
Accumulated other comprehensive loss | (10,673) | (11,438) | ||||
TOTAL STOCKHOLDERS' EQUITY | 48,518 | 44,730 | ||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 770,828 | $ | 729,773 | ||
(1) Includes available-for-sale and held-to-maturity classifications. | ||||||
Note: The | ||||||
Condensed Consolidated Statements of Income | |||||||||||
(Dollars in thousands, except share data - unaudited) | |||||||||||
Three Months Ended | Six Months Ended | ||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||
Interest income | $ | 8,571 | $ | 5,889 | $ | 16,472 | $ | 11,406 | |||
Interest expense | 2,867 | 564 | 4,917 | 1,128 | |||||||
Net interest income | 5,704 | 5,325 | 11,555 | 10,278 | |||||||
Provision for credit losses * | 170 | 257 | 388 | 431 | |||||||
Net interest income after provision for credit losses* | 5,534 | 5,068 | 11,167 | 9,847 | |||||||
Non-interest income | 706 | 599 | 1,309 | 1,464 | |||||||
Non-interest expense | |||||||||||
Salaries and employee benefits | 1,989 | 1,909 | 3,900 | 3,692 | |||||||
Net occupancy and equipment expense | 593 | 511 | 1,177 | 989 | |||||||
Federal deposit insurance premiums | 165 | 46 | 257 | 95 | |||||||
Franchise taxes | 101 | 115 | 201 | 231 | |||||||
Advertising and marketing | 75 | 57 | 130 | 98 | |||||||
Legal | 7 | 12 | 19 | 33 | |||||||
Professional fees | 17 | 42 | 111 | 155 | |||||||
ATM network | 103 | 94 | 199 | 191 | |||||||
Auditing and accounting | 63 | 59 | 120 | 120 | |||||||
Merger related expenses | 437 | - | 437 | - | |||||||
Other | 399 | 346 | 792 | 688 | |||||||
Total non-interest expense | 3,949 | 3,191 | 7,343 | 6,292 | |||||||
Income before federal income taxes | 2,291 | 2,476 | 5,133 | 5,019 | |||||||
Provision for federal income taxes | 547 | 457 | 1,110 | 933 | |||||||
Net income | $ | 1,744 | $ | 2,019 | $ | 4,023 | $ | 4,086 | |||
Earnings per share | |||||||||||
Basic | $ | 0.79 | $ | 0.88 | $ | 1.83 | $ | 1.75 | |||
Diluted | $ | 0.79 | $ | 0.87 | $ | 1.82 | $ | 1.73 | |||
*Adopted ASU 2016-13 during the first quarter 2023: therefore, prior periods provision amount reflects the incurred loss method. | |||||||||||
Selected Condensed Consolidated Financial Data | |||||||||||||||||
(Dollars in thousands, except share data - unaudited) | |||||||||||||||||
June | March | December | September | ||||||||||||||
2023 | 2023 | 2022 | 2022 | ||||||||||||||
Interest and dividend income | $ | 8,571 | $ | 7,901 | $ | 7,518 | $ | 6,892 | |||||||||
Interest expense | 2,867 | 2,050 | 1,248 | 670 | |||||||||||||
Net interest income | 5,704 | 5,851 | 6,270 | 6,222 | |||||||||||||
Provision for credit losses* | 170 | 218 | 381 | 410 | |||||||||||||
Net interest income after | |||||||||||||||||
provision for credit losses* | 5,534 | 5,633 | 5,889 | 5,812 | |||||||||||||
Non-interest income | 706 | 603 | 631 | 636 | |||||||||||||
Non-interest expense | 3,949 | 3,394 | 3,508 | 3,350 | |||||||||||||
Income before federal income taxes | 2,291 | 2,842 | 3,012 | 3,098 | |||||||||||||
Provision for federal income taxes | 547 | 563 | 603 | 589 | |||||||||||||
Net income | $ | 1,744 | $ | 2,279 | $ | 2,409 | $ | 2,509 | |||||||||
Earnings per share - basic | $ | 0.79 | $ | 1.04 | $ | 1.09 | $ | 1.14 | |||||||||
Earnings per share - diluted | $ | 0.79 | $ | 1.03 | $ | 1.09 | $ | 1.13 | |||||||||
Dividends per share | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.23 | |||||||||
Return on average assets | 0.92 | % | 1.23 | % | 1.36 | % | 1.48 | % | |||||||||
Return on average equity | 14.36 | % | 19.58 | % | 22.87 | % | 22.85 | % | |||||||||
Shares outstanding | 2,199,407 | 2,196,457 | 2,192,738 | 2,191,338 | |||||||||||||
Book value per share | $ | 22.06 | $ | 21.82 | $ | 20.40 | $ | 18.94 | |||||||||
June | March | December | September | ||||||||||||||
2022 | 2022 | 2021 | 2021 | ||||||||||||||
Interest and dividend income | $ | 5,889 | $ | 5,517 | $ | 5,502 | $ | 5,589 | |||||||||
Interest expense | 564 | 564 | 592 | 617 | |||||||||||||
Net interest income | 5,325 | 4,953 | 4,910 | 4,972 | |||||||||||||
Provision for loan losses | 257 | 174 | 128 | 177 | |||||||||||||
Net interest income after | |||||||||||||||||
provision for loan losses | 5,068 | 4,779 | 4,782 | 4,795 | |||||||||||||
Non-interest income | 599 | 865 | 598 | 663 | |||||||||||||
Non-interest expense | 3,191 | 3,101 | 3,156 | 3,057 | |||||||||||||
Income before federal income taxes | 2,476 | 2,543 | 2,224 | 2,401 | |||||||||||||
Provision for federal income taxes | 457 | 476 | 428 | 449 | |||||||||||||
Net income | $ | 2,019 | $ | 2,067 | $ | 1,796 | $ | 1,952 | |||||||||
Earnings per share - basic | $ | 0.88 | $ | 0.87 | $ | 0.76 | $ | 0.81 | |||||||||
Earnings per share - diluted | $ | 0.87 | $ | 0.86 | $ | 0.75 | $ | 0.80 | |||||||||
Dividends per share | $ | 0.23 | $ | 0.23 | $ | 0.21 | $ | 0.21 | |||||||||
Return on average assets | 1.23 | % | 1.28 | % | 1.12 | % | 1.23 | % | |||||||||
Return on average equity | 17.37 | % | 15.44 | % | 13.48 | % | 14.76 | % | |||||||||
Shares outstanding | 2,185,688 | 2,369,886 | 2,365,268 | 2,380,374 | |||||||||||||
Book value per share | $ | 19.33 | $ | 21.12 | $ | 22.67 | $ | 22.25 | |||||||||
*Adopted ASU 2016-13 during the first quarter 2023: therefore, prior periods provision amount reflects the incurred loss method. | |||||||||||||||||
Non-GAAP reconciliation | ||||||||||
(Dollars in thousands, except per share data - unaudited) | ||||||||||
For the three months | For the Six months | |||||||||
Net Income as reported - GAAP | $ | 1,744 | $ | 4,023 | ||||||
Effect of merger related expenses | 437 | 437 | ||||||||
Net Income non-GAAP | $ | 2,181 | $ | 4,460 | ||||||
Earnings per share - GAAP | $ | 0.79 | $ | 1.83 | ||||||
Effect of merger related expenses | 0.20 | 0.20 | ||||||||
Earnings per share non-GAAP | $ | 0.99 | $ | 2.03 | ||||||
Return on average assets - GAAP | 0.92 | % | 1.07 | % | ||||||
Effect of merger related expenses | 0.23 | % | 0.12 | % | ||||||
Return on average assets non-GAAP | 1.15 | % | 1.19 | % | ||||||
Return on average equity - GAAP | 14.36 | % | 16.91 | % | ||||||
Effect of merger related expenses | 3.60 | % | 1.84 | % | ||||||
Return on average equity non-GAAP | 17.96 | % | 18.75 | % | ||||||
Efficiency Ratio - GAAP | 62.23 | % | 57.39 | % | ||||||
Effect of merger related expenses | -6.82 | % | -3.39 | % | ||||||
Efficiency Ratio non-GAAP | 55.41 | % | 54.00 | % | ||||||
Source:
2023 GlobeNewswire, Inc., source