First Quarter 2024 Highlights Customer deposit balances increased by 10.3% annualized Nonperforming loan balances declined to 0.05% of net loans Received regulatory approval for merger with Main Street Financial Services, Corp. WOOSTER, Ohio, April 26, 2024 (GLOBE NEWSWIRE) -- Wayne Savings Bancshares, Inc. (OTCQX:WAYN), (the "Company"), the holding company parent of Wayne Savings Community Bank, reported net income (unaudited) of $1.5 million, or $0.70 per common share, for the three months ended March 31, 2024, a decrease of $0.7 million, or 32.5%, compared to $2.3 million, or $1.04 per common share, for the three months ended March 31, 2023. Net income, excluding the merger-related expenses (non-GAAP) for the three months ended March 31, 2024, was $1.7 million, or $0.78 per share. The return on average equity and return on average assets for the first quarter of 2024, was 11.63% and 0.76%, respectively, compared to 19.58% and 1.23%, respectively, for the same period in 2023. Excluding merger-related expenses, return on average equity and return on average assets for the quarter ended March 31, 2024, was 12.94% and 0.86%, respectively. President and CEO James R. VanSickle commented, "We are excited about the opportunities our merger with Main Street Financial Services Corp. will present us in 2024 and beyond. We have found a partner that understands the dreams and aspirations of our customers and is committed to preserving the tradition of community banking. The increased capabilities, scale, and profitability of the combined organization will allow us to invest in our future, better serve our customers, and compete for market share within the communities we serve." The Company previously announced a merger of equals transaction with Main Street Financial Services Corp. On March 15, 2024, the Company announced regulatory approvals were received from the Federal Reserve Bank, the Federal Deposit Insurance Corp., the Ohio Division of Financial Institutions, and the West Virginia Board of Banking and Financial Institutions. The combined company will have pro-forma assets exceeding $1.3 billion and 19 branches from Wooster, Ohio to Wheeling, West Virginia. The transaction is expected to close in the second quarter of 2024 pending the satisfaction of all closing considerations, including shareholder approval of both companies. First Quarter 2024 Financial Results Net interest income was $5.1 million for the quarter ended March 31, 2024, down 13.6% from $5.9 million for the quarter ended March 31, 2023. The net interest margin of 2.61% for the first quarter of 2024 decreased 68 basis points from 3.29% for the first quarter of 2023. Loan yields were 5.33% for the quarter ended March 31, 2024, compared to 4.78% for the quarter ended March 31, 2023. The cost of funds for the first quarter of 2024, was 2.48%, up 129 basis points when compared to the first quarter of 2023. The cost of funds increase is largely due to utilizing higher-cost wholesale funding, such as FHLB advances and brokered certificates of deposit, and shifting deposit composition to higher-yielding product offerings. A negative provision for credit losses of $126,000 was recorded for the quarter ended March 31, 2024, compared to a loss provision of $218,000 for the quarter ended March 31, 2023. The Company benefited from improved credit deterioration assessments and recognized no charge-offs during the quarter, which continues to lower the annual loss rate credit metric. Noninterest income increased $75,000 to $678,000 for the first quarter of 2024 when compared to the first quarter of 2023. Noninterest expense totaled $3.9 million for the quarter ended March 31, 2024, an increase of $540,000, or 15.9%, compared to the quarter ended March 31, 2023, primarily due to merger related expenses, occupancy and equipment expense, and salaries and benefits. Excluding merger related expenses (non-GAAP) of $174,000 for the quarter ended March 31, 2024, the Company's efficiency ratio was 65.6% compared to 52.6% for the quarter ended March 31, 2023. March 31, 2024 Financial Condition At March 31, 2024, the Company had total assets of $818.2 million, an increase of $8.2 million, from December 31, 2023. Net loan balances increased from $669.6 million at December 31, 2023, to $677.2 million at March 31, 2024. The $7.6 million increase in net loans reflects an annualized growth rate of 4.5%, consisting mainly of commercial real estate loans and one-to-four family mortgage loans. The allowance for credit losses was $7.2 million at March 31, 2024, compared to $7.3 million at December 31, 2023. The allowance for credit losses and the related provision for credit losses is based on management's judgment and evaluation of the loan portfolio. Management believes the current allowance for credit losses is adequate, however, changing economic and other conditions may require future adjustments to the allowance for credit losses. Total nonperforming loans declined to $333,000 at March 31, 2024, from $406,000 at December 31, 2023. Past due loan balances of 30 days and more increased marginally from $2.8 million at December 31, 2023, to $3.4 million at March 31, 2024. Delinquencies remain relatively low by historical standards and are continuously monitored as conditions evolve. Total liabilities increased $8.2 million during the first quarter of 2024 due primarily to an increase in customer deposits by $14.7 million (10.3% annualized) and brokered certificates of deposit by $4.9 million. The increase in deposits was partially offset by a reduction in Federal Home Loan Bank advances of $11.0 million. Total stockholders' equity was $53.0 million at March 31, 2024, and remained relatively unchanged when compared to the December 31, 2023 balance. Retained earnings increased by $1.0 million and were offset by a $1.0 million increase in accumulated other comprehensive loss. A cash dividend of $0.23 per share for the quarter ended March 31, 2024, was declared on March 28, 2024, and will be paid on May 1, 2024. Established in 1899, Wayne Savings Community Bank, the wholly owned subsidiary of Wayne Savings Bancshares, Inc., has fourteen full-service banking locations in the communities of Wooster, Ashland, Millersburg, Rittman, Lodi, North Canton, Creston, Fredericksburg, Washingtonville, Dalton and Carrollton, Ohio. Additional information about Wayne Savings Community Bank is available at www.waynesavings.com. Non-GAAP DisclosureThis 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 the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flow that excludes or includes amounts that are required to be disclosed by GAAP. The Company believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and the Company's marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. Forward-Looking-StatementsThis 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: James R. VanSickle IIPresident and Chief Executive Officer(330) 264-5767     WAYNE SAVINGS BANCSHARES, INC.   Condensed Consolidated Balance Sheets   (Dollars in thousands, except share data - unaudited)     March 31, 2024   December 31, 2023   ASSETS                   Cash and cash equivalents $ 24,304   $ 20,884   Securities, net (1) 83,630   86,405   Loans receivable, net 677,159   669,603   Federal Home Loan Bank stock 2,778   3,959   Premises & equipment, net 4,799   4,904   Bank-owned life insurance 11,775   11,706   Other assets 13,714   12,485             TOTAL ASSETS $ 818,159   $ 809,947             LIABILITIES AND STOCKHOLDERS' EQUITY                   Deposit accounts $ 712,758   $ 693,126   Other short-term borrowings 8,548   8,743   Federal Home Loan Bank advances 36,000   47,000   Accrued interest payable and other liabilities 7,832   8,111             TOTAL LIABILITIES 765,138   756,980                       Common stock (3,978,731 shares of $.10 par value issued) 398   398   Additional paid-in capital 36,716   36,715   Retained earnings 56,375   55,342   Treasury Stock, at cost - 1,777,324 shares and 1,777,824 shares       at March 31, 2024 and December 31, 2023, respectively. (30,322)   (30,330)   Accumulated other comprehensive loss (10,146)   (9,158)             TOTAL STOCKHOLDERS' EQUITY 53,021   52,967             TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 818,159   $ 809,947             (1) Includes available-for-sale and held-to-maturity classifications.   Note: The December 31, 2023 Condensed Consolidated Balance Sheet has been derived from the audited Consolidated Balance Sheet as of that date.             WAYNE SAVINGS BANCSHARES, INC. Condensed Consolidated Statements of Income (Dollars in thousands, except share data - unaudited)             Three Months Ended     March 31, Percentage     2024       2023 change           Interest income $ 9,694     $ 7,901 22.7 % Interest expense   4,641       2,050 126.4 % Net interest income   5,053       5,851 (13.6 )% Provision for credit losses   (126 )     218 (157.8 )% Net interest income after provision for credit losses   5,179       5,633 (8.1 )% Non-interest income   678       603 12.4 % Non-interest expense         Salaries and employee benefits   2,000       1,911 4.7 % Net occupancy and equipment expense   682       584 16.8 % Federal deposit insurance premiums   143       92 55.4 % Franchise taxes   127       100 27.0 % Advertising and marketing   68       55 23.6 % Legal   6       12 (50.0 )% Professional fees   85       94 (9.6 )% ATM network   129       96 34.4 % Auditing and accounting   72       57 26.3 % Merger related expenses   187       -   Other   435       393 10.7 % Total non-interest expense