Wayne Savings Bancshares — Shareholder Meeting (May 2016)
45 slides from Wayne Savings Bancshares's shareholder meeting presentation, May 26, 2016
Slide 1: Annual Shareholders' Meeting
Annual Shareholders’ Meeting Annual Shareholders ’ Meeting May 26, 2016
Slide 2: Forward Looking Statements
Forward Looking Statements In addition to the historical information contained herein, the following discussion contains forward - looking statements that involve risks and uncertainties . Economic circumstances, the Company’s operations, and actual results could differ significantly from those disc
Slide 3: Call to order
Call to order Peggy J. Schmitz Chair, Board of Directors
Slide 4: Directors
Directors Peggy J. Schmitz, Chair, Board of Directors Jonathan Ciccotelli, CPA Daniel R. Buehler Stewart Fitz Gibbon, President & CEO
Slide 5: Directors
Directors David L. Lehman Debra A. Marthey Glenn W. Miller, CPA
Slide 6: Senior Management Team - WSCB
Senior Management Team - WSCB Stewart Fitz Gibbon – President and CEO Joel Beckler – SVP, Senior Loan Officer Myron Swartzentruber, CPA – SVP, CFO Jeff King – SVP, Chief Information Officer Donna Knack – SVP, Director of Customer Service & Sales
Slide 7: Also Present
Also Present Matthew Hartzler – VP , Chief Risk Officer: Inspector of Election Brittany Hartzler – A VP, Corporate Secretary John Schlagenhauf, CPA – BKD LLP Scott Hopf, CPA – BKD LLP Francis Grady – Grady and Associates
Slide 8: Instructions on Procedures
1) Satis BANCSHARES, INC Instructions on Procedures pat atte
Slide 9: Opening of the Polls
Opening of the Polls “oO are WAYNESSAVINGS If MWgrY BANK Sy
Slide 10: Closing of the Polls
Closing of the Polls
Slide 11: Business Overview
Business Overview Stewart Fitz Gibbon President and CEO
Slide 12: Strategic Initiatives
Strategic Initiatives Focus on core mission, vision and values statements – a balanced and sustainable approach to continued improvement in: □ Shareholder returns □ Customer and community relationships □ Staff development and change from thrift to bank culture
Slide 13: Strategic Initiatives: Enhancement of balance sheet assets
Strategic Initiatives Enhancement of balance sheet assets □ Commercial Loans □ Residential Mortgage Loans □ Consumer Loans – Auto and Home Equity
Slide 14: Balance Sheet Liabilities
Balance Sheet Liabilities □ Fairly priced consumer deposit accounts □ Fairly priced business transaction accounts Strategic Initiatives
Slide 15: Strategic Initiatives: Culture Change
Strategic Initiatives Culture Change □ Shift from a transaction oriented thrift culture to a relationship oriented commercial bank culture □ Focus on the community banking model where local decision making is our primary competitive advantage □ Development of a balanced culture where customer servic
Slide 16: Strategic Initiatives: Technology
Technology □ Continued work on a project list to improve customer service and operational efficiency □ A highlight of 2015 was the redesign of our website as our platform for digital engagement. As shown on the cover of your annual report, the site is scalable to whatever device is being used to vie
Slide 17: Promote community bank brand message
□ Branch lobby graphics □ Advertising □ Mobile responsive website □ Social Media Marketing Strategic Initiatives Promote community bank brand message through:
Slide 18: Strategic Initiatives: Marketing
Strategic Initiatives We continue to focus on our community bank brand using several messages □ Together We Grow □ Your Neighbors Serving You □ Other Banks have Branches, We have Roots Marketing
Slide 19: Strategic Initiatives: Marketing
Strategic Initiatives We continue to focus on our community bank brand using several messages □ Together We Grow □ Your Neighbors Serving You □ Other Banks have Branches, We have Roots Marketing
Slide 20: Strategic Initiatives: Marketing
Strategic Initiatives We continue to focus on our community bank brand using several messages □ Together We Grow □ Your Neighbors Serving You □ Other Banks have Branches, We have Roots Marketing
Slide 21: Strategic Initiatives: Marketing
Strategic Initiatives We continue to focus on our community bank brand using several messages □ Together We Grow □ Your Neighbors Serving You □ Other Banks have Branches, We have Roots Marketing
Slide 22: Focus on local - Community Ads
Strategic Initiatives Focus on local – Community Ads Billboard
Slide 23: Marketing Campaign Strategy
Strategic Initiatives Marketing Campaign Strategy Increase use of digital channels to reach customer segments □ Mobile □ Social media □ Direct mail □ Customer emails □ Online banking
Slide 24: Mobile App Advertisement
Strategic Initiatives Mobile App Advertisement
Slide 25: Online banking ad, Direct Mail, Sponsored ads
Strategic Initiatives Online banking ad Direct Mail Sponsored ads
Slide 26: Brand message focusing on core banking products
Strategic Initiatives Brand message focusing on core banking products
Slide 27: Strategic Initiatives
Sas Strategic Initiatives
Slide 28: Financial Performance: Total Assets
Financial Performance -4% -2% 0% 2% 4% 6% 380,000 390,000 400,000 410,000 420,000 430,000 440,000 2011 2012 2013 2014 2015 Total Assets Total Assets Growth Rate
Slide 29: Financial Performance: Total Loans
Financial Performance 0% 5% 10% 15% 200,000 225,000 250,000 275,000 300,000 2011 2012 2013 2014 2015 Total Loans Total Loans Loan Growth 2015 was our most successful recent year in terms of loan growth, reflecting generally improved economic conditions nationally and in our market area. Loan growth
Slide 30: Financial Performance: Total Deposits
Financial Performance -4% -2% 0% 2% 4% 6% 300,000 320,000 340,000 360,000 380,000 2011 2012 2013 2014 2015 Total Deposits Total Deposits Deposit Growth We’re focused on the gathering of deposits, particularly core transaction accounts, as the foundation for funding the loan growth illustrated above.
Slide 31: Financial Performance: Total Capital
Financial Performance 201 2012 2013 2014 2015 37,000 38,000 39,000 40,000 41,000 Total Capital Total capital has remained nearly constant, as dividends and share repurchases have returned capital to shareholders. As the Company’s organic loan growth improves, greater retention of capital will likely
Slide 32: Net Income and Earnings Per Share
Financial Performance 0.00 0.20 0.40 0.60 0.80 1.00 0 500 1,000 1,500 2,000 2,500 3,000 2011 2012 2013 2014 2015 Net Income and Earnings Per Share Net Income Earnings Per Share Net income and earnings per share were on a steady upward trajectory from 2011 through 2014. The next slides show the main
Slide 33: Provision for Loan Losses
Financial Performance 0 500 1,000 1,500 2011 2012 2013 2014 2015 Provision for Loan Losses An increased provision for loan losses was the single most significant factor affecting earnings for 2015. The 2015 increase in the provision was due to charge - offs as a result of properties transferred to R
Slide 34: Net Interest Margin
Financial Performance 3.00% 3.20% 3.40% 2011 2012 2013 2014 2015 Net Interest Margin Net Interest Margin The prolonged period of low interest rates that began after the 2008 financial crisis continues to put pressure on the net interest margin, which is the difference between the yields in assets an
Slide 35: Asset Quality: Non Performing Loan Balances
Asset Quality 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 2011 2012 2013 2014 2015 Non Performing Loan Balances
Slide 36: Asset Quality: Delinquent Loan Balances
Asset Quality 0 1,000 2,000 3,000 4,000 2011 2012 2013 2014 2015 Delinquent Loan Balances The trend of delinquency is down over the period, reflecting slowly improving economic conditions and reinforcing our belief that the overall credit quality of the portfolio is improving.
Slide 37: Asset Quality: Classified Assets
Asset Quality 0 5,000 10,000 15,000 20,000 2011 2012 2013 2014 2015 Classified Assets In accordance with regulatory guidance, classified loans exhibit some degree of weakness that may indicate future credit problems. The trend is moving downward, reflecting our belief that the credit quality of our
Slide 38: First Quarter 2016 Update
First Quarter 2016 Update First Quarter 2016 – Form 10 - Q Filed May 6 □ Total Assets 437,595 up 1% from 12/31/15 □ Total Deposits 365,574 up 1% from 12/31/15 □ Total Loans 306,121 up 4% from 12/31/15 □ Net Income 707,000 up 61% compared to 3/31/15 □ Earnings Per Share 0.26 up 63% compared to 3/31/1
Slide 39: Financial Performance: Total Assets
Financial Performance -4% -2% 0% 2% 4% 6% 380,000 400,000 420,000 440,000 460,000 2011 2012 2013 2014 2015 2016 1Q Total Assets Total Assets Growth Rate Our overall growth goal over the long run is to grow at the rate of growth in Gross Domestic Product (GDP), which has been averaging about 2% natio
Slide 40: Financial Performance: Total Loans
Financial Performance 0% 5% 10% 15% 200,000 250,000 300,000 350,000 2011 2012 2013 2014 2015 2016 1Q Total Loans Total Loans Loan Growth 2015 was our most successful recent year in terms of loan growth, reflecting generally improved economic conditions nationally and in our market area . Loan growth
Slide 41: Financial Performance: Total Deposits
Financial Performance -4% -2% 0% 2% 4% 6% 300,000 320,000 340,000 360,000 380,000 2011 2012 2013 2014 2015 2016 1Q Total Deposits Total Deposits Deposit Growth We’re focused on the gathering of deposits, particularly core transaction accounts, as the foundation for funding the loan growth illustrate
Slide 42: Net Income and Earnings Per Share
Financial Performance 0.00 0.10 0.20 0.30 0 200 400 600 800 2015 1Q 2015 2Q 2015 3Q 2015 4Q 2016 1Q Net Income and Earnings Per Share Net Income Earnings Per Share The second quarter of 2015 was our recent low due to the credit event noted previously. Since then, we have made steady improvement in n
Slide 43: Stock Price and Dividends Per Share
Financial Performance 0.00 0.10 0.20 0.30 0.40 - 5.00 10.00 15.00 12/31/12 12/31/13 12/31/14 12/31/15 5/19/16* Stock Price and Dividends Per Share Stock Price (left scale, in dollars) Dividends Per Share (right scale, in cents) Total Shareholder Return (right scale, in percent) * First Quarter rate
Slide 44: Report of the Inspector of Election
Report of the Inspector of Election Matthew Hartzler VP, Chief Risk Officer
Slide 45: Adjournment
Adjournment Annual Shareholders’ Meeting Management will answer questions after meeting
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