WAYNE SAVINGS BANCSHARES INC /DE/ - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - August 1, 2011

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8-K - FORM 8K - WAYNE SAVINGS BANCSHARES INC /DE/form8k-117456_wayne.htm
EX-99.2 - EXHIBIT 99.2 - WAYNE SAVINGS BANCSHARES INC /DE/ex99-2.htm
Business
Overview
1
Rod Steiger, President & CEO
 
 
 
MISSION & VISION
2
• To Excel in Customer Service,
 Operate Profitably, and be
 Community Minded
• To Be the Best Financial
 Institution Possible
 
 
 
STRATEGIC GOAL
• To Position Wayne Savings
 As the Area’s Premier
 Community-Minded Bank
3
• Focus: Loan Growth,
 Risk Management,
 Shareholder Value
 
 
 
4
• Strong Name Brand Recognition
• Excellent Reputation
• Safety & Soundness
• Local Decision Making
• Personal Attention to Customers
 
 
 
Investor Joseph Stilwell, et.al.
5
Recently acquired an additional 96,920 shares and
went from 6.49% ownership to 9.70%
Quote from SNL Financial article (June 2011):
“Any bank that sticks to… its local community
and really works at it hard does OK, or better.
The people who are doing it right focus on
banking, and they make decisions irrespective, so
to speak, of their own personal well-being.”
We live here, work hard, and agree with him.
 
 
 
6
WSCB Web Video
 
 
 
An Eventful Year
7
• Phil Becker Retired; New CEO
• New Director: Debra Marthey
• New Dodd-Frank Reform Bill
 - Durbin Amendment - July 21st
                                                               2000 pages & 300 new regulations
 - New Consumer Financial Protection Bureau  
 (CFPB) and Financial Stability Oversight
 Council (FSOC)
• New CFPB will have wide-sweeping authority
 
 
 
• State-Chartered Thrift - Not a commercial
 bank, but in many ways we act and look like
 one
8
• Office of Thrift Supervision (OTS) was
 replaced by the Federal Deposit Insurance
 Corporation (FDIC) and will regulate Wayne
 Savings Community Bank along with the
 Ohio Department of Financial Institutions
 (ODFI).
 
 
 
9
• Federal Reserve Bank (FRB) will now
 regulate Wayne Savings Bancshares Inc.
 (WSBI), Holding Company
• OTS - ODFI - SEC
• FDIC - ODFI - FRB
 CFPB - SEC
 
 
 
FDIC, ODFI, FRB,
CFPB, FSOC, SEC
EPS, ROE,
ROA, NIM,
Stock Value
Independence,
Take-overs,
Mergers
Future of
Community
Banking
Technology
 Customer
Satisfaction
Government
Regulations
& Mandates
Loans -
Delinquencies,
C/O
CEO Concerns or….
What Keeps Me Up at Night
 
 
 
My Vision
11
• A Place Customers Want to Come
• A Place People Want to Work
• A Place Investors Want to Invest
• Corporate Community Citizen
• Profitable
• Independent
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1
 
 
 
 
 
 
 
 
 
 
 
 
 
LENDING
1
Joel Beckler, SVP, Senior Lender
 
 
 
 
  2007 - $ 249,056
  2008 - $ 247,038
  2009 - $ 259,716
  2010 - $ 252,760
  2011 - $ 244,029
* Dollars in Thousands/all data as of March 31.
Total Loans
2
 
 
 
1-to-4 Family Residential Loans
2007 - $155,002
2008 - $155,363
2009 - $159,257
2010 - $159,140
2011 - $162,435
* Dollars in Thousands/all data as of March 31
3
 
 
 
Non-Residential Real Estate
Land Loans
2007 - $ 66,304
2008 - $ 65,789
2009 - $ 75,521
2010 - $ 70,167
2011 - $ 62,508
•Dollars in Thousands/all data as of March 31
4
 
 
 
Non-Performing Assets
As of March 31
      2010  2011
       (dollars in thousands)
Total Non-Performing Loans 4,319  5,157
Loans Deemed Impaired  2,185  5,827
Total Non-Performing and   6,504 10,984
 Impaired Loans
Total Real Estate Owned  2,888  2,214
Total Non-Performing and   9,932 13,198
 Impaired Assets
5
 
 
 
Non-Performing & Impaired Assets
to Total Assets at March 31
2007 - 0.23%
2008 - 0.49%
2009 - 1.43%
2010 - 2.31%
2011 - 3.24%
6
 
 
 
Allowance for Loan Losses
to Total Loans at March 31
2007 - 0.63%
2008 - 0.73%
2009 - 0.97%
2010 - 1.13%
2011 - 1.32%
7
 
 
 
Commercial Lending
Sector Exposures (data as of March 31, 2011)
SECTOR
1) Investment Rental     $22.9 million
  Properties
2) Manufacturing & Warehousing
  Facilities      $10.9 million
3) Commercial Office & Retail   $12.3 million
 
4) Automotive Related Real Estate  $ 6.6 million
 
 
BALANCE
OUTSTANDING
8
 
 
 
TRUST
SERVICES
9
Wendy Blosser, SVP, Senior Trust Officer
 
 
 
Trust Department
Trusts offer an excellent means of
increasing a bank’s fee income.
10
 
 
 
Financial Benefits
• Source of off-balance sheet
 income to boost profitability
• Revenue stream that is not affected
 by Net Interest Margin
 - Average account life = 20 years
 - Can continue for generations
11
 
 
 
Non-Financial Considerations
Customer needs
 Retirement/Estate planning
 Investment management
 Trust services
Expanded customer relationships
 Allows loan and deposit customers to also utilize
 investment management and trust services
Customer retention
 By offering all the services from one provider
Competition from banks and other providers
Market perception - full service provider
12
 
 
 
Target Market
Baby Boomers and their parents
 
-Elderly segment of population rapidly
 expanding
-As longevity increases, many people depend
 on fiduciaries to manage their wealth
-Massive shift of wealth from one generation to
 the next
13
 
 
 
Year Six Results (as of March 31, 2011)
82 Accounts
Aggregate Market Value of
$41.5 Million
14
 
 
 
Account Details (data as of March 31, 2011)
41 Personal
Trusts/Estates
$18 million
market value
14 IMAs
$4 million
market value
15 Rollover IRAs
$3.5 million
market value
12 Custody Accounts
$16 million
market value
15
 
 
 
Annual Fees
 3/31/2006 3/31/2007 3/31/2008 3/31/2009 3/31/2010 3/31/2011
 $187,520
 $179,646
$197,799
16
$220,800
 
 
 
Looking Ahead
Total Potential Additional Market
Value approximately $30 million
Many unfunded accounts
Many successor accounts
Attorney referrals
17
 
 
 
 
 
RETAIL
BANKING &
OPERATIONS
1
Steve Dimos, EVP, Retail
Banking / Operations
 
 
 
Branch Operations
This resource will help evaluate
our branch system.
Bank Intelligence Solutions:
2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL
HIGHLIGHTS
1
Myron Swartzentruber, SVP, CFO
 
 
 
Wayne Savings Bancshares, Inc.
Annual Net Income
($ in millions)
2
 
 
 
Wayne Savings Bancshares, Inc.
Net Interest Income
($ in millions)
3
 
 
 
Wayne Savings Bancshares, Inc.
Return on Equity (%)
4
 
 
 
Wayne Savings Bancshares, Inc.
Shareholders Equity as a
Percent of Total Assets / Capital
5
 
 
 
Wayne Savings Bancshares, Inc.
Dividend Payout Ratio
6
 
 
 
Wayne Savings Bancshares, Inc.
Total Assets
($ in millions)
7
 
 
 
Wayne Savings Bancshares, Inc.
Total Deposits
($ in millions)
8
 
 
 
Provisions For Loan Losses
($ in thousands)
9
 
 
 
Non-Interest Income
($ in thousands)
10
 
 
 
Non-Interest Expense
($ in thousands)
11
 
 
 
RISK
MANAGEMENT
12
H. Stewart Fitz Gibbon III,
EVP, COO, CRO
 
 
 
Risk Management
13
Major Strategic Initiative:
•development of an enterprise risk
  management program
 
 
 
Risk Management Framework
14
CAMELS:
   C - Capital
   A - Asset Quality
   M - Management
   E - Earnings
   L - Liquidity
   S - Sensitivity
 
 
 
(C) - Capital
15
• Increased by earnings
• Decreased by dividends and stock
 buyback programs
• Decreased by losses
 
 
 
(A) - Asset Quality
• Delinquencies
• Non-performing
• Real estate owned
 
 
 
(M) - Management
17
• Everything not included in another category
• Compliance
• Community Reinvestment Act
• Trust
• Information Technology
• Legal
• Insurance
• Operations
• Accounting/Financial Reporting
• Reputation
 
 
 
18
(E) - Earnings
• Net Interest Margin
• Fee Income
• Non-interest Expense
 
 
 
(L) - Liquidity
19
ØOn balance sheet
 • Securities
 • Loans
 • Cash
ØOff balance sheet
 • Borrowing capacity
 
 
 
(S) - Sensitivity
20
• Interest Rate Risk
The company’s principal exposure
to market risk is through changes
in interest rates.
 
 
 
Enterprise Risk Management (ERM)
• www.sec.gov
• 8-K Filing
21
 
 
 
Change of Fiscal Year
• Currently March 31
• Will be December 31, starting at
 the end of this year - 2011
• Annual meeting will be in April or
 May instead of July
• Purpose is to provide better
 comparisons with other institutions
 and to facilitate call reporting.
22
 
 
 
QUESTIONS
23
 
 
 
Your investment and
continuing support are
greatly appreciated.
THANK YOU
24
 
 
 
 
 
 

WAYNE SAVINGS BANCSHARES INC /DE/ Reports