WOOSTER, Ohio, Jan. 19, 2023 (GLOBE NEWSWIRE) -- Wayne Savings Bancshares, Inc. (OTCQX: WAYN), (the "Company"), the holding company parent of Wayne Savings Community Bank, reported record net income (unaudited) of $9.0 million, or $3.98 per common share, for the year ended December 31, 2022, an increase of $1.6 million or 21.1%, compared to $7.4 million or $3.06 per common share, for the same period ended December 31, 2021. The increase in net income was due to growth in net interest income and an increase in non-interest income, partially offset with an increase in provision for loan losses, non-interest expenses, and provision for federal income taxes. The return on average equity and return on average assets for the year ended December 31, 2022, was 19.37% and 1.34%, respectively, compared to 14.00% and 1.19% for the same period in 2021.
The Company reported net income (unaudited) of $2.4 million, or $1.09 per common share, for the quarter ended December 31, 2022, an increase of $613,000, or 34.1%, compared to $1.8 million, or $0.76 per common share, for the quarter ended December 31, 2021. The increase in net income was due to growth in net interest income and in non-interest income, partially offset with an increase in provision for loan losses, non-interest expenses, and provision for federal income taxes. The return on average equity and return on average assets for the fourth quarter of 2022 was 22.87% and 1.36%, respectively, compared to 13.48% and 1.12% for the same period in 2021.
President and CEO James R. VanSickle commented, "We are pleased to report our excellent results for the fourth quarter and full year of 2022. The $9.0 million of net income in 2022 represents our sixth consecutive year of record earnings. Wayne Savings' team of dedicated community bankers continue to build strong relationships with our customers and within our communities. Total assets exceeded $700 million for the first time during the fourth quarter and ended the year at $730 million.
Our commercial and residential lending teams have been committed to helping businesses grow and funding our neighbor's dreams under the leadership of Executive Chairman, Mark R. Witmer. Mark has successfully developed a talented team of lenders over the past few years. Wayne Savings generated a record $251 million in loan originations during 2022.
Wayne Savings remains optimistic with our growth opportunities in 2023. Despite economic headwinds caused by inflationary pressures and increases in the federal funds rate to mitigate these pressures, our financial performance in 2022 has been outstanding. We believe our competitive advantages of strong loan and core deposit growth, excellent asset quality and our ability to leverage operational efficiencies will allow us to capitalize on opportunities throughout 2023 and beyond."
2022 Select Business Highlights
- Net loan balances increased to $594.9 million at December 31, 2022, compared to $454.6 million at December 31, 2021, or 30.9% growth, comprised mainly of $88.3 million of commercial loans secured by real estate and $48.1 million of one-to-four family residential mortgage loans.
- Wayne Savings deposits increased $65.4 million, or 12.1%, to $605.8 million at December 31, 2022, compared to $540.5 million at December 31, 2021, primarily due to the growth in brokered certificates of deposits of $35.0 million, increased business checking accounts of $12.7 million, and $6.9 million in money market investor accounts. Our Impact checking product increased from $10.7 million at December 31, 2021, to $14.1 million at December 31, 2022. The Company uses brokered deposits as a replacement to Federal Home Loan advances.
- On May 23, 2022, Wayne Savings Bancshares, Inc., purchased 189,398 shares from a single shareholder. This completed the stock repurchase program announced on December 16, 2021.
- Wayne Savings Bancshares, Inc. declared a cash dividend of $0.23 per share for the quarter ending December 31, 2022. The quarterly cash dividend will be paid on January 24, 2023, to the stockholders of record as of January 11, 2023.
Fourth Quarter 2022 Financial Highlights
- Net interest income was $6.3 million for the quarter ended December 31, 2022, an increase of $1.4 million, or 27.7%, compared to the quarter ended December 31, 2021. The net interest margin increased from 3.19% for the quarter ended December 31, 2021, to 3.68% for the comparable period of 2022. Interest income on loans increased by $1.8 million, or 35.8%, primarily related to the $130.5 million increase in average loan balances to $574.0 million for the quarter ended December 31, 2022, from $443.5 million for the same period of the prior year. Yields on investment securities and interest-earning cash balances increased 139 basis points from 1.03% to 2.42% at December 31, 2022. The average balances on investment securities and interest-earning deposits decreased $63.2 million.
- Provision for loan losses increased to $381,000 in the fourth quarter of 2022 compared to $128,000 for the same period in 2021 mainly due to the increased loan growth for the 2022 quarter compared to the 2021 quarter.
- Noninterest expense totaled $3.5 million for the three-month period ended December 31, 2022, an increase of $352,000, or 11.2%, compared to the three months ended December 31, 2021, primarily due to increased salaries and employee benefits as the Company added additional sales and sales support staff to facilitate loan and deposit growth. The Company's efficiency ratio was 50.8% for the three-month period ended December 31, 2022, compared to 57.3% for the same period in 2021.
2022 Year-to-Date Business Highlights
- Net interest income was $22.8 million for the year ended December 31, 2022, an increase of $3.5 million, or 18.0%, compared to the same period in 2021 as the annual average loan balances increased $97.1 million from the December 31, 2021 period. Net interest margin for the year ended December 31, 2022, rose by 30 basis points to 3.53% as the average yield on interest-earning assets increased 35 basis points and the average rate on interest-bearing liabilities increased only 5 basis points compared to 2021. Interest income on loans increased by $3.4 million, or 17.2%, as average balances increased to $515.8 million at December 2022. Interest income on investment securities and interest-earning cash balances increased by $561,000 while the average balance decreased $50.1 million to $126.1 million at December 31, 2022. Yields on investment securities and interest-earning cash balances increased from 1.02% for the year ending December 31, 2021, to 1.87% for the 2022 period due to the increased interest rate environment.
- Net loan balances increased from $454.6 million at December 31, 2021, to $594.9 million at December 31, 2022, an increase of $140.3 million, or 30.9% of growth consisting mainly of commercial real estate loans and one-to-four family residential mortgage loans. Loan growth in 2021 was 16.2%.
- Provision for loan losses was $1.2 million for the year ending December 31, 2022, compared to $746,000 million for the prior year. The increase in provision for loan losses expense was mainly due to the growth in our loan portfolio for 2022 of 30.9%.
- Noninterest expense totaled $13.2 million for the year ended December 31, 2022, an increase of $1.2 million, or 9.7%, compared to the December 31, 2021 year. The increase was primarily due to the increased salaries and employee benefits as the Company added additional sales and sales support staff to facilitate loan and deposit growth. The Company's efficiency ratio was 51.6% for the year ended December 31, 2022, compared to 54.7% for the same period in 2021.
December 31, 2022 Financial Condition
At December 31, 2022, the Company had total assets of $729.8 million, an increase of $93.8 million from December 31, 2021. The growth in total assets includes a $140.3 million increase in net loans, partially offset by a decrease of $30.6 million in cash and cash equivalents and a decline of $18.5 million in securities, as compared to December 31, 2021.
The allowance for loan losses was $6.7 million at December 31, 2022, compared to $5.4 million at December 31, 2021. 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 have declined to $805,000 at December 31, 2022, from $1.2 million at December 31, 2021, as the Bank received payoffs of nonperforming loans from three customers totaling $623,000. Past due loan balances of 30 days and more increased from $3.3 million at December 31, 2021, to $4.3 million at December 31, 2022, mainly due to increased one-to-four family residential loan delinquencies, partially offset with a decline in commercial real estate loan delinquencies.
Total liabilities increased $102.7 million due to an increase in deposits accounts of $65.4 million and Federal Home Loan advances of $44.5 million. Deposit accounts increased primarily due to brokered certificates of deposit $35.0 million, increased business checking accounts of $12.7 million, and money market investor accounts $6.9 million.
Total stockholders' equity declined by $8.9 million in the year ended December 31, 2022. The Company earned $9.0 million of net income for the year ended December 31, 2022, exceeding 2021 by 21.1%. The Company repurchased treasury shares of $4.9 million from a single shareholder and paid $2.1 million in dividends during 2022. Accumulated other comprehensive loss increased by $11.3 million primarily due to an increase in gross unrealized loss on securities available for sale as market interest rates increased.
Established in 1899, Wayne Savings Community Bank, the wholly owned subsidiary of Wayne Savings Bancshares, Inc., has thirteen full-service banking locations in the communities of Wooster, Ashland, Millersburg, Rittman, Lodi, North Canton, Creston, Fredericksburg, Washingtonville and Dalton, 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 share data - unaudited) | ||||||||||||||||
| December | September | June | March | |||||||||||||
| 2022 | 2022 | 2022 | 2022 | |||||||||||||
| Interest and dividend income | $ | 7,518 | $ | 6,892 | $ | 5,889 | $ | 5,517 | ||||||||
| Interest expense | 1,248 | 670 | 564 | 564 | ||||||||||||
| Net interest income | 6,270 | 6,222 | 5,325 | 4,953 | ||||||||||||
| Provision for loan losses | 381 | 410 | 257 | 174 | ||||||||||||
| Net interest income after | ||||||||||||||||
| provision for loan losses | 5,889 | 5,812 | 5,068 | 4,779 | ||||||||||||
| Non-interest income | 631 | 636 | 599 | 865 | ||||||||||||
| Non-interest expense | 3,508 | 3,350 | 3,191 | 3,101 | ||||||||||||
| Income before federal income taxes | 3,012 | 3,098 | 2,476 | 2,543 | ||||||||||||
| Provision for federal income taxes | 603 | 589 | 457 | 476 | ||||||||||||
| Net income | $ | 2,409 | $ | 2,509 | $ | 2,019 | $ | 2,067 | ||||||||
| Earnings per share - basic | $ | 1.09 | $ | 1.14 | $ | 0.88 | $ | 0.87 | ||||||||
| Earnings per share - diluted | $ | 1.09 | $ | 1.13 | $ | 0.87 | $ | 0.86 | ||||||||
| Dividends per share | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.23 | ||||||||
| Return on average assets | 1.36 | % | 1.48 | % | 1.23 | % | 1.28 | % | ||||||||
| Return on average equity | 22.87 | % | 22.85 | % | 17.37 | % | 15.44 | % | ||||||||
| Shares outstanding | 2,192,738 | 2,191,338 | 2,185,688 | 2,369,886 | ||||||||||||
| Book value per share | $ | 20.40 | $ | 18.94 | $ | 19.33 | $ | 21.12 | ||||||||
| December | September | June | March | |||||||||||||
| 2021 | 2021 | 2021 | 2021 | |||||||||||||
| Interest and dividend income | $ | 5,502 | $ | 5,589 | $ | 5,364 | $ | 5,352 | ||||||||
| Interest expense | 592 | 617 | 630 | 670 | ||||||||||||
| Net interest income | 4,910 | 4,972 | 4,734 | 4,682 | ||||||||||||
| Provision for loan losses | 128 | 177 | 278 | 163 | ||||||||||||
| Net interest income after | ||||||||||||||||
| provision for loan losses | 4,782 | 4,795 | 4,456 | 4,519 | ||||||||||||
| Non-interest income | 598 | 663 | 737 | 615 | ||||||||||||
| Non-interest expense | 3,156 | 3,057 | 2,975 | 2,795 | ||||||||||||
| Income before federal income taxes | 2,224 | 2,401 | 2,218 | 2,339 | ||||||||||||
| Provision for federal income taxes | 428 | 449 | 416 | 452 | ||||||||||||
| Net income | $ | 1,796 | $ | 1,952 | $ | 1,802 | $ | 1,887 | ||||||||
| Earnings per share - basic | $ | 0.76 | $ | 0.81 | $ | 0.73 | $ | 0.76 | ||||||||
| Earnings per share - diluted | $ | 0.75 | $ | 0.80 | $ | 0.72 | $ | 0.76 | ||||||||
| Dividends per share | $ | 0.21 | $ | 0.21 | $ | 0.21 | $ | 0.21 | ||||||||
| Return on average assets | 1.12 | % | 1.23 | % | 1.15 | % | 1.26 | % | ||||||||
| Return on average equity | 13.48 | % | 14.76 | % | 13.53 | % | 14.22 | % | ||||||||
| Shares outstanding | 2,365,268 | 2,380,374 | 2,401,411 | 2,477,391 | ||||||||||||
| Book value per share | $ | 22.67 | $ | 22.25 | $ | 21.66 | $ | 21.14 | ||||||||
| WAYNE SAVINGS BANCSHARES, INC. | |||||||||||||||
| Condensed Consolidated Statements of Income | |||||||||||||||
| (Dollars in thousands, except share data - unaudited) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Interest income | $ | 7,518 | $ | 5,502 | $ | 25,816 | $ | 21,807 | |||||||
| Interest expense | 1,248 | 592 | 3,046 | 2,509 | |||||||||||
| Net interest income | 6,270 | 4,910 | 22,770 | 19,298 | |||||||||||
| Provision for loan losses | 381 | 128 | 1,222 | 746 | |||||||||||
| Net interest income after provision for loan losses | 5,889 | 4,782 | 21,548 | 18,552 | |||||||||||
| Non-interest income | 631 | 598 | 2,731 | 2,613 | |||||||||||
| Non-interest expense | |||||||||||||||
| Salaries and employee benefits | 2,133 | 1,869 | 7,758 | 6,920 | |||||||||||
| Net occupancy and equipment expense | 562 | 503 | 2,051 | 1,943 | |||||||||||
| Federal deposit insurance premiums | 70 | 59 | 257 | 224 | |||||||||||
| Franchise taxes | 112 | 113 | 458 | 443 | |||||||||||
| Advertising and marketing | 62 | 66 | 258 | 171 | |||||||||||
| Legal | 7 | (1 | ) | 65 | 47 | ||||||||||
| Professional fees | 97 | 52 | 347 | 202 | |||||||||||
| ATM network | 95 | 91 | 386 | 380 | |||||||||||
| Auditing and accounting | 12 | 40 | 196 | 257 | |||||||||||
| Other | 358 | 364 | 1,374 | 1,396 | |||||||||||
| Total non-interest expense | 3,508 | 3,156 | 13,150 | 11,983 | |||||||||||
| Income before federal income taxes | 3,012 | 2,224 | 11,129 | 9,182 | |||||||||||
| Provision for federal income taxes | 603 | 428 | 2,125 | 1,745 | |||||||||||
| Net income | $ | 2,409 | $ | 1,796 | $ | 9,004 | $ | 7,437 | |||||||
| Earnings per share | |||||||||||||||
| Basic | $ | 1.09 | $ | 0.76 | $ | 3.98 | $ | 3.06 | |||||||
| Diluted | $ | 1.09 | $ | 0.75 | $ | 3.93 | $ | 3.03 | |||||||
| WAYNE SAVINGS BANCSHARES, INC. | |||||||
| Condensed Consolidated Balance Sheets | |||||||
| (Dollars in thousands, except share data - unaudited) | |||||||
| December 31, 2022 | December 31, 2021 | ||||||
| ASSETS | |||||||
| Cash and cash equivalents | $ | 13,799 | $ | 44,437 | |||
| Securities, net (1) | 91,769 | 110,216 | |||||
| Loans held for sale | - | 272 | |||||
| Loans receivable, net | 594,931 | 454,587 | |||||
| Federal Home Loan Bank stock | 3,322 | 4,226 | |||||
| Premises & equipment, net | 5,183 | 5,223 | |||||
| Bank-owned life insurance | 11,434 | 11,169 | |||||
| Other assets | 9,335 | 5,874 | |||||
| TOTAL ASSETS | $ | 729,773 | $ | 636,004 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Deposit accounts | $ | 605,834 | $ | 540,456 | |||
| Other short-term borrowings | 14,776 | 22,402 | |||||
| Federal Home Loan Bank advances | 58,500 | 14,000 | |||||
| Accrued interest payable and other liabilities | 5,933 | 5,520 | |||||
| TOTAL LIABILITIES | 685,043 | 582,378 | |||||
| Common stock (3,978,731 shares of $.10 par value issued) | 398 | 398 | |||||
| Additional paid-in capital | 36,584 | 36,420 | |||||
| Retained earnings | 49,645 | 42,698 | |||||
| Treasury Stock, at cost - 1,785,993 shares and 1,613,463 shares | |||||||
| at December 31, 2022 and December 31, 2021, respectively. | (30,459 | ) | (25,786 | ) | |||
| Accumulated other comprehensive loss | (11,438 | ) | (104 | ) | |||
| TOTAL STOCKHOLDERS' EQUITY | 44,730 | 53,626 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 729,773 | $ | 636,004 | |||
| (1) Includes available-for-sale and held-to-maturity classifications. | |||||||
| Note: The December 31, 2021 Condensed Consolidated Balance Sheet has been derived from the audited Consolidated Balance Sheet as of that date. | |||||||
