Wayne Savings Bancshares Inc. Reports Operating Results (10-K)
Wayne Savings Bancshares Inc. has a market cap of $23.28 million; its shares were traded at around $7.75 with a P/E ratio of 10.06 and P/S ratio of 1.06. The dividend yield of Wayne Savings Bancshares Inc. stocks is 3.1%. Wayne Savings Bancshares Inc. had an annual average earning growth of 9.3% over the past 10 years.
Highlight of Business Operations:Wayne Savings Bancshares, Inc. (the “Company”), is a unitary holding company for Wayne Savings Community Bank (the “Bank”). The only significant asset of the Company is its investment in the Bank. The Bank conducts its business from eleven full-service locations. The Company s principal office is located at 151 North Market Street, Wooster, Ohio, and its telephone number at that address is (330) 264-5767. At March 31, 2010, the Company had total assets of $406.0 million, total deposits of $311.9 million, and stockholders equity of $37.0 million, or 9.1% of total assets.
During the last five fiscal years, the Company has placed increased emphasis on non-residential real estate and commercial business loans. Non-residential real estate loans have increased from $50.8 million, or 21.3% of the total loan portfolio at March 31, 2006, to $64.4 million, or 25.5% of the total loan portfolio, at March 31, 2010. Commercial business loans have increased from $21.6 million, or 9.0% of the total loan portfolio, at March 31, 2006, to $35.6 million, or 14.1% of the total loan portfolio, at March 31, 2010. Correspondingly, one-to-four family residential and construction loans have decreased from $153.5 million, or 64.3% of the total loan portfolio at March 31, 2006, to $140.8 million, or 55.7% of the total loan portfolio, at March 31, 2010. Nonresidential real estate loans and commercial loans generally carry higher yields and shorter terms than one-to-four family loans. The increased emphasis on nonresidential real estate and commercial business loans has diversified the loan portfolio, expanded the Company s product offerings and broadened the Company s customer base and its corresponding ability to cross-sell its varied product offerings. This change in emphasis has also resulted in increased staffing expense and, in the current economic environment, increased provisions for loan losses due to the higher inherent risk associated with commercial lending activities. Growth in the loan portfolio peaked during fiscal 2009. Loan demand decreased during fiscal 2010, resulting in slower loan portfolio growth and a corresponding increase in the securities portfolio.
The Company has continued to develop the commercial business loan program in order to increase the Company s interest rate sensitive assets, increase interest income and diversify both the loan portfolio and the Company s customer base. The Company has three experienced commercial lenders to manage this portfolio. The Company targets small local businesses with loan amounts in the $50,000 - $1.0 million range with a majority of loans under $500,000. While commercial business loans increased to $35.6 million at March 31, 2010, as compared to $21.6 million at March 31, 2006, nonresidential real estate and land loans increased from $50.8 million, or 21.3%, of the total loan portfolio at March 31, 2006, to $64.4 million, or 25.5%, of the total loan portfolio at March 31, 2010.
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