EXHIBIT 99.1

Wayne Savings Bancshares, Inc. Announces Earnings for the Quarter and Year ended December 31, 2016

WOOSTER, Ohio, Feb. 13, 2017 (GLOBE NEWSWIRE) -- Wayne Savings Bancshares, Inc. (NASDAQ:WAYN), the holding company parent of Wayne Savings Community Bank, reported net income (unaudited) of $315,000 or $0.12 per common share for the quarter ended December 31, 2016, compared to $592,000 or $0.22 per common share for the quarter ended December 31, 2015. The decrease in net income was primarily due to severance costs of $291,000 and elevated retirement costs of approximately $124,000, the increase in provision for loan losses of $109,000, and a decrease in noninterest income as loan sales declined due to rising rates.  These changes in net income were partially offset by an increase in net interest income of $178,000 and a reduction in the provision for federal income taxes of $119,000.  The increase in net interest income was mainly the result of a $39.2 million, or 13.4%, increase in net loans.  The return on average equity and return on average assets for the 2016 quarter were 3.03% and 0.28%, respectively, compared to 5.92% and 0.55%, respectively, for the 2015 quarter.  Without the severance and elevated retirement costs net of federal income taxes, the quarterly earnings would have been $589,000.  The adjusted return on average equity would have been 5.67% and the adjusted return on average assets would have been 0.53% for the 2016 quarter.


Net interest income increased $178,000 for the quarter ended December 31, 2016, compared to the quarter ended December 31, 2015. Interest income increased $205,000 during the 2016 quarter primarily due to a $19.4 million increase in average interest-earning assets, and an increase in the rates earned on those assets from 3.68% in the prior year quarter to 3.70% in the current year quarter.  Interest expense increased $27,000 primarily due to a $17.7 million increase in the average balance of interest-bearing liabilities. The rates paid on those liabilities were unchanged, and was 0.52% for both quarters ended December 31, 2016 and 2015, respectively. The net interest rate spread increased from 3.16% for the quarter ended December 31, 2015 to 3.18% for the quarter ended December 31, 2016. 

Provision for loan losses was $213,000 in the 2016 quarter, an increase of $109,000 from $104,000 provided during the 2015 quarter.   The increase is primarily due to an increase in specific reserves on certain identified loans and an increase in loan balances, partially offset by a decrease in charge-offs and loss history compared to the prior year period.

Noninterest income decreased $12,000 for the quarter ended December 31, 2016 compared to the quarter ended December 31, 2015. The decrease was primarily due to a $36,000 decrease in gain on sale of loans, due to a decrease in loans sold during the current year quarter. The decrease in gain on sale of loans was partially offset by an increase in service fees, charges and other operating income primarily due to an increase in service charges on deposits. 

Noninterest expense totaled $3.3 million and increased $453,000 for the quarter ended December 31, 2016 compared to the quarter ended December 31, 2015.  This increase is primarily due to a $427,000 increase in salaries and employee benefits, and a $65,000 increase in occupancy and equipment expense, partially offset by a $59,000 decrease in federal deposit insurance premiums compared to the prior year quarter. The increase in salaries and employee benefits was primarily a result of increased compensation and payroll taxes due to severance payments, merit increases, an increase in healthcare costs due to an increase in premiums, and an increase in pension costs due to current year retirements, partially offset by lower education and training and post-retirement benefit costs compared to the prior year quarter. Included in salaries and employee benefits is $291,000 related to severance expenses during the current year quarter. The increase in occupancy and equipment expense was due to increases in insurance, depreciation expense, furniture and fixture expense and ATM network expenses compared to the prior year quarter. The decrease in federal deposit insurance premiums was due to a lower assessment rate compared to the prior year quarter.

For the year ended December 31, 2016, net income totaled $2.2 million, or $0.82 per common share, compared to net income of $1.6 million, or $0.60 per diluted share, for the year ended December 31, 2015.  The increase in net income was primarily due to an increase in both net interest income and noninterest income and a decrease in the provision for loan losses, partially offset by an increase in both noninterest expense and the provision for federal income taxes. The return on average equity and return on average assets for the year ended December 31, 2016 was 5.46% and 0.51%, respectively, compared to 4.11% and 0.39%, respectively, for the year ended December 31, 2015.  Without the severance and elevated retirement costs of $468,000 for the year, earnings would have been $2.6 million, net of provision for federal income taxes.  The adjusted return on average equity would have been 6.21% and the adjusted return on average assets would have been 0.58% for the 2016 year.

Net interest income increased $949,000 for the year ended December 31, 2016, compared to the year ended December 31, 2015. Interest income increased $1.1 million during the 2016 period mainly due to a $21.0 million increase in average interest-earning assets, and an increase in the rates earned on those assets from 3.63% in the prior year period to 3.70% in the current year period.

Interest expense increased $103,000 primarily due to a $20.0 million increase in the average balance of interest-bearing liabilities, while the average rates paid were 0.52% for both periods. The net interest rate spread increased from 3.11% in the prior year period to 3.18% in the current year period, as a result of interest-earning assets repricing upward, while interest-bearing deposits were unchanged.   

Provision for loan losses decreased $810,000 to $365,000 during the 2016 period compared to $1.2 million during the 2015 period. The decrease is primarily due to a decrease in net charge-offs and impaired loans from the prior year period, as well as improved economic factors, partially offset by higher provision for increased loan balances, and specific reserves on certain identified loans.

Noninterest income increased $106,000 for the year ended December 31, 2016 compared to the year ended December 31, 2015. The increase was primarily due to a $25,000 increase in gain on sale of residential mortgage loans, and a $77,000 increase in service fees, charges and other operating income. The increase in gain on sale of residential mortgage loans was primarily due to more favorable pricing in the current year period, partially offset by a decrease in loans sold from $5.9 million in the 2015 period to $5.5 million in the 2016 period. The increase in service fees, charges and other operating income was primarily due to a supervisory fee refund.

Noninterest expense increased $971,000 for the year ended December 31, 2016 compared to the year ended December 31, 2015.  This increase includes an $860,000 increase in salaries and employee benefits, a $141,000 increase in occupancy and equipment expense, and an $89,000 increase in franchise taxes, partially offset by a $55,000 decrease in federal deposit insurance premiums, and a $100,000 decrease in loss on sale of foreclosed assets. The increase in salaries and employee benefits was primarily due to an increase in director and committee fees, employee compensation expense, and the related payroll taxes due to severance payments as previously discussed, merit increases since the prior year period, increased healthcare costs due to increased premiums, and increased pension costs due to current year retirements. These increases were partially offset by lower costs for education and training and post-retirement benefits. The increase in occupancy and equipment expense was due to increases in depreciation, furniture, fixture and equipment expense and data processing, partially offset by a decrease in building maintenance and repairs. The increase in franchise taxes was due to the exclusion of the tax credit for the state supervisory exam fee that had previously been assessed and in other noninterest expense in the prior year period. The decrease in federal deposit insurance premiums was due to a lower assessment rate compared to the prior year period. The decrease in loss on sale of foreclosed assets was due to the sale of certain properties at higher losses in the prior year period.

At December 31, 2016, the Company had total assets of $454.8 million, an increase of $21.2 million from total assets at December 31, 2015. The increase in total assets includes a $5.6 million increase in cash and cash equivalents and a $39.2 million increase in net loan balances, partially offset by a $23.4 million decrease in securities compared to the prior year period.

Total securities decreased $23.4 million to $80.3 million at December 31, 2016, compared to $103.7 million at December 31, 2015. The decrease in securities was primarily due to investing the principal and interest cash flows from securities into higher yielding loans. Net loans totaled $332.3 million at December 31, 2016, an increase of $39.2 million, compared to $293.1 million at December 31, 2015, primarily due to new originations in excess of principal reductions and scheduled maturities.

The allowance for loan losses totaled $3.0 million, or 0.91% of gross loans, at December 31, 2016, compared to $2.8 million, or 0.96% of gross loans, at December 31, 2015.  Nonperforming assets, which consist of loans on non-accrual status and real estate owned, totaled $1.6 million at December 31, 2016, or 0.47% of total loans, a decrease of $383,000 from the December 31, 2015, balance of $1.9 million, or 0.66% of total loans. 

Deposits totaled $383.7 million at December 31, 2016, an increase of $21.3 million from $362.4 million at December 31, 2015.  This increase includes a $9.7 million increase in demand deposits, an $8.9 million increase in savings and money market balances, and a $2.7 million increase in time deposits. The Company continues to monitor deposit activity closely to respond to changes in customer preference for types of deposits.

Other short-term borrowings, which consist solely of repurchase agreements with commercial customers of the Bank, increased by $1.6 million and totaled $7.2 million at December 31, 2016.  These repurchase agreements are offered by the Bank in order to retain commercial customer funds and to provide these commercial customers the opportunity to earn a return on a short-term secured transaction. 

Advances from the Federal Home Loan Bank (FHLB) totaled $18.0 million at December 31, 2016, compared to $21.0 million at December 31, 2015.  This decrease was due to the scheduled maturity of a $3.0 million fixed rate advance that was not replaced.  The Bank uses FHLB advances to extend the duration of its liabilities to manage the interest rate risk associated with the longer duration of loans at a lower cost than other funding alternatives, particularly retail term deposits.

Stockholders’ equity increased by $1.1 million during the period ended December 31, 2016, primarily due to net income of $2.2 million, and a $178,000 net increase in other comprehensive loss related to post-retirement benefits. These increases were partially offset by dividends of $989,000, and a $406,000 increase in unrealized losses on available-for-sale securities compared to the prior year period.

On September 22, 2016, the Company announced that its Board of Directors adopted a new stock repurchase program. Under the new stock repurchase program, the Company is authorized to repurchase up to 69,546 shares, or 2.5%, of its issued and outstanding shares of common stock. As of December 31, 2016 none of these shares have been repurchased due to the stock price exceeding the book value.

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 www.waynesavings.com.

Statements contained in this news release which are not historical facts may be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors. Factors which could result in material variations include, but are not limited to, changes in interest rates which could affect net interest margins and net interest income, competitive factors which could affect net interest income and noninterest income, changes in demand for loans, deposits and other financial services in the Company's market area; changes in asset quality, general economic conditions as well as other factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.

     
WAYNE SAVINGS BANCSHARES, INC.    
CONSOLIDATED FINANCIAL HIGHLIGHTS    
(Dollars in thousands, except share and per share data - unaudited)    
      
  For the Three Months 
  ended December 31, 
      
   2016   2015  
      
Quarterly Results     
      
Net Interest Income $3,406  $3,228  
Net Income $315  $592  
Earnings Per Share:     
Basic and diluted $0.12  $0.22  
Return on Average Assets (Annualized)  0.28%  0.55% 
Return on Average Equity (Annualized)  3.03%  5.92% 
      
  For the Twelve Months 
  ended December 31, 
      
   2016   2015  
      
Year to Date Results     
      
Net Interest Income $13,481  $12,532  
Net Income $2,246  $1,647  
Earnings Per Share:     
Basic and diluted $0.82  $0.60  
Return on Average Assets (Annualized)  0.51%  0.39% 
Return on Average Equity (Annualized)  5.46%  4.11% 
      
      
  December 31, December 31, 
   2016   2015  
      
End of Period Data     
      
Total Assets $454,791  $433,632  
Stockholders' Equity to Total Assets  9.02%  9.20% 
Shares Outstanding  2,781,839   2,781,839  
Book Value Per Share $14.75  $14.34  
          

 

  
WAYNE SAVINGS BANCSHARES, INC. 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME 
(Dollars in Thousands, except per share data - unaudited) 
         
         
 Three Months Ended Twelve Months Ended 
 December 31, December 31, 
  2016  2015  2016  2015 
         
Interest income$3,931 $3,726 $15,551 $14,499 
Interest expense 525  498  2,070  1,967 
Net interest income 3,406  3,228  13,481  12,532 
Provision for loan losses 213  104  365  1,175 
Net interest income after provision for loan losses 3,193  3,124  13,116  11,357 
Noninterest income 466  478  1,996  1,890 
Noninterest expense 3,276  2,823  12,158  11,187 
Income before federal income taxes 383  779  2,954  2,060 
Provision for federal income taxes 68  187  708  413 
Net income$315 $592 $2,246 $1,647 
         
Earnings per share        
Basic and Diluted$0.12 $0.22 $0.82 $0.60 
         
Dividends per share$0.09 $0.09 $0.36 $0.36 

 

  
WAYNE SAVINGS BANCSHARES, INC. 
CONDENSED CONSOLIDATED BALANCE SHEETS 
(Dollars in thousands, except share and per share data) 
 December 31, 2016 December 31, 2015 
 (Unaudited) (Audited) 
ASSETS    
     
Cash and cash equivalents$16,756  $11,156  
Investment securities, net (1) 80,268   103,654  
Loans receivable, net 332,283   293,121  
Federal Home Loan Bank stock 4,226   4,226  
Premises & equipment 6,420   6,663  
Foreclosed assets held for sale, net 2   14  
Bank-owned life insurance 9,827   9,554  
Other assets 5,009   5,244  
TOTAL  ASSETS$454,791  $433,632  
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
Deposit accounts 383,733   362,427  
Other short-term borrowings 7,246   5,606  
Federal Home Loan Bank Advances 18,000   21,000  
Accrued interest payable and other liabilities 4,784   4,694  
TOTAL LIABILITIES 413,763   393,727  
     
     
Common stock (3,978,731 shares of $.10 par value issued) 398   398  
Additional paid-in capital 36,041   36,017  
Retained earnings 22,317   21,060  
Shares acquired by ESOP (273)  (343) 
Treasury Stock, at cost - 1,196,892 shares at December 31, 2016 and December 31, 2015. (16,936)  (16,936) 
Accumulated other comprehensive income (loss) (519)  (291) 
TOTAL STOCKHOLDERS' EQUITY 41,028   39,905  
     
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$454,791  $433,632  
(1)  Includes held-to-maturity classifications.    


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


The following information was filed by Wayne Savings Bancshares Inc (WAYN) on Monday, February 13, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one year to another to evaluate Wayne Savings Bancshares Inc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-K Annual Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Wayne Savings Bancshares Inc.

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account