| x | QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|---|--------------------------------------------------------------------------------------------------------------------------------------|

| For                the quarterly period ended | June                30, 2007 |   |
|-----------------------------------------------|------------------------------|--------|

| o | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|---|---------------------------------------------------------------------------------------------------------------------------------------|

| WAYNE                SAVINGS BANCSHARES, INC.                                        |
|--------------------------------------------------------------------------------------|
| (Exact                name of registrant as specified in its                charter) |

| Delaware                                                   |   | 31-1557791                            |
|------------------------------------------------------------|--------|---------------------------------------|
| (State                or other jurisdiction of             |   | (I.R.S.                Employer       |
| incorporation                or organization)              |   | Identification                Number) |
|                                                       |   |                                  |
| 151                North Market Street                     |   |                                  |
| Wooster,                Ohio      |   | 44691                                 |
| (Address                of principal                       |   | (Zip                Code)             |
| executive                office)                           |   |                                  |

| Yes                   ý   | No                o |
|---------------------------------------------------------|---------------------|

| Large                accelerated filer o | Accelerated                filer o | Non-accelerated                filer   ý |
|------------------------------------------|------------------------------------|---------------------------------------------------------|

| Yes                o | No                  ý |
|----------------------|--------------------------------------|

----

**Wayne      Savings Bancshares, Inc.**

D

|                                     |                                                                                                                                 | Page   |
|------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                     |                                                                                                                                 |   |
| PART                I   - | FINANCIAL                INFORMATION                                                                                                 |   |
|                                     |                                                                                                                                 |   |
| Item                1                    | Consolidated                Statements of Financial                Condition                                                         | 3      |
|                                     | Consolidated                Statements of Income                                                                                     | 4      |
|                                     | Consolidated                Statements of Comprehensive                Income                                                        | 5      |
|                                     | Consolidated                Statements of Cash Flows                                                                                 | 6      |
|                                     | Notes                to Consolidated Financial Statements                                                                            | 8      |
|                                     |                                                                                                                                 |   |
| Item                2                    | Management’s                Discussion and Analysis of  Financial                Condition and Results of Operations | 12     |
|                                     |                                                                                                                                 |   |
| Item                3                    | Quantitative                and Qualitative Disclosures About Market                Risk                                             | 19     |
|                                     |                                                                                                                                 |   |
| Item                4                    | Controls                and Procedures                                                                                               | 19     |
|                                     |                                                                                                                                 |   |
|                                     |                                                                                                                                 |   |
| PART                II -                 | OTHER                INFORMATION                                                                                                     |   |
|                                     |                                                                                                                                 |   |
| Item                1                    | Legal                Proceedings                                                                                                     | 20     |
|                                     |                                                                                                                                 |   |
| Item                1A                   | Risk                Factors                                                                                                          | 20     |
|                                     |                                                                                                                                 |   |
| Item                2                    | Unregistered                Sales of Equity Securities and Use of                Proceeds                                            | 20     |
|                                     |                                                                                                                                 |   |
| Item                3                    | Defaults                Upon Senior Securities                                                                                       | 20     |
|                                     |                                                                                                                                 |   |
| Item                4                    | Submission                of Matters to a Vote of Security                Holders                                                    | 20     |
|                                     |                                                                                                                                 |   |
| Item                5                    | Other                Information                                                                                                     | 21     |
|                                     |                                                                                                                                 |   |
| Item                6                    | Exhibits                                                                                                                             | 21     |
|                                     |                                                                                                                                 |   |
| SIGNATURES                               |                                                                                                                                 | 22     |

----

*Index*

**Wayne        Savings Bancshares, Inc.**

**CONSOLIDATED        STATEMENTS OF FINANCIAL CONDITION**

|                                                                                                                |   | **June                  30,** |        |   | **March                  31,** |   |
|---------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|-------------|--------|--------------------------------|--------|
| **ASSETS**                                                                                                          |   | **2007**                      |        |   | **2007**                       |   |
|                                                                                                                |   | (Unaudited)                   |        |   |                           |   |
|                                                                                                                |   |                          |        |   |                           |   |
| Cash                  and due from banks                                                                            |   | $                             | 2,365       |   |                           | $      | 2,194 |   |
| Federal                  funds sold                                                                                 |   |                          | -           |   |                           |   | 9,000 |   |
| Interest-earning                  deposits in other financial institutions                                          |   |                          | 7,176       |   |                           |   | 6,021 |   |
| Cash                  and cash equivalents                                                                          |   |                          | 9,541       |   |                           |   | 17,215 |   |
|                                                                                                                |   |                          |        |   |                           |   |   |   |
| Investment                  securities available for sale - at fair value                                           |   |                          | 44,434      |   |                           |   | 54,128 |   |
| Investment                  securities held to maturity - at amortized cost,                  approximate           |   |                          |        |   |                           |   |   |   |
| fair                  value of $524 and $573 at June 30, 2007 and March 31, 2007,                  respectively     |   |                          | 519         |   |                           |   | 565 |   |
| Mortgage-backed                  securities available for sale - at fair value                                      |   |                          | 73,538      |   |                           |   | 67,856 |   |
| Mortgage-backed                  securities held to maturity - at amortized cost,                  approximate      |   |                          |        |   |                           |   |   |   |
| fair                  value of $1,097 and $1,219 at June 30, 2007 and March 31, 2007,                  respectively |   |                          | 1,089       |   |                           |   | 1,209 |   |
| Loans                  receivable - net of allowance for loan losses of $1,571 and                  $1,523          |   |                          |        |   |                           |   |   |   |
| at                  June 30, 2007 and March 31, 2007, respectively                                                  |   |                          | 244,402     |   |                           |   | 240,049 |   |
| Office                  premises and equipment – net                                                          |   |                          | 8,052       |   |                           |   | 8,179 |   |
| Real                  estate acquired through foreclosure                                                           |   |                          | 113         |   |                           |   | - |   |
| Federal                  Home Loan Bank stock - at cost                                                             |   |                          | 4,829       |   |                           |   | 4,829 |   |
| Cash                  surrender value of life insurance                                                             |   |                          | 6,091       |   |                           |   | 6,034 |   |
| Accrued                  interest receivable on loans                                                               |   |                          | 1,133       |   |                           |   | 1,100 |   |
| Accrued                  interest receivable on mortgage-backed securities                                          |   |                          | 339         |   |                           |   | 314 |   |
| Accrued                  interest receivable on investments and interest-bearing                  deposits          |   |                          | 386         |   |                           |   | 667 |   |
| Prepaid                  expenses and other assets                                                                  |   |                          | 1,118       |   |                           |   | 1,065 |   |
| Goodwill                  and other intangible assets                                                               |   |                          | 2,375       |   |                           |   | 2,402 |   |
| Prepaid                  federal income taxes                                                                       |   |                          | -           |   |                           |   | 125 |   |
|                                                                                                                |   |                          |        |   |                           |   |   |   |
| Total                  assets                                                                                       |   | **$**                         | **397,959** |   |                           | **$**  | **405,737** |   |
|                                                                                                                |   |                          |        |   |                           |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS’ EQUITY**                                                     |   |                          |        |   |                           |   |   |   |
|                                                                                                                |   |                          |        |   |                           |   |   |   |
| Deposits                                                                                                            |   | $                             | 326,377     |   |                           | $      | 333,540 |   |
| Advances                  from the Federal Home Loan Bank                                                           |   |                          | 35,450      |   |                           |   | 34,500 |   |
| Advances                  by borrowers for taxes and insurance                                                      |   |                          | 205         |   |                           |   | 616 |   |
| Accrued                  interest payable                                                                           |   |                          | 435         |   |                           |   | 383 |   |
| Accounts                  payable on mortgage loans serviced for others                                             |   |                          | 95          |   |                           |   | 197 |   |
| Other                  liabilities                                                                                  |   |                          | 1,125       |   |                           |   | 1,071 |   |
| Accrued                  federal income taxes                                                                       |   |                          | 20          |   |                           |   | - |   |
| Deferred                  federal income taxes                                                                      |   |                          | 518         |   |                           |   | 997 |   |
| Total                  liabilities                                                                                  |   |                          | 364,225     |   |                           |   | 371,304 |   |
|                                                                                                                |   |                          |        |   |                           |   |   |   |
| Commitments                                                                                                         |   |                          | -           |   |                           |   | - |   |
|                                                                                                                |   |                          |        |   |                           |   |   |   |
| Stockholders’                  equity                                                                         |   |                          |        |   |                           |   |   |   |
| Preferred                  stock (500,000 shares of $.10 par value authorized; no                                   |   |                          |        |   |                           |   |   |   |
|  shares                  issued)                                                                               |   |                          | -           |   |                           |   | - |   |
| Common                  stock (9,000,000 shares of $.10 par value authorized;                  3,978,731            |   |                          |        |   |                           |   |   |   |
|  shares                  issued)                                                                               |   |                          | 398         |   |                           |   | 398 |   |
| Additional                  paid-in capital                                                                         |   |                          | 36,106      |   |                           |   | 36,106 |   |
| Retained                  earnings - substantially restricted                                                       |   |                          | 12,122      |   |                           |   | 11,982 |   |
| Less                  required contributions for shares acquired by Employee                  Stock                 |   |                          |        |   |                           |   |   |   |
|  Ownership                  Plan                                                                               |   |                          | (1,158      | )      |                           |   | (1,158 | ) |
| Less                  784,622 shares of treasury stock-at cost                                                      |   |                          | (12,419     | )      |                           |   | (12,419 | ) |
| Accumulated                  comprehensive loss, net of tax benefits                                                |   |                          | (1,315      | )      |                           |   | (476 | ) |
| Total                  stockholders’ equity                                                                   |   |                          | 33,734      |   |                           |   | 34,433 |   |
|                                                                                                                |   |                          |        |   |                           |   |   |   |
| Total                  liabilities and stockholders’ equity                                                   |   | **$**                         | **397,959** |   |                           | **$**  | **405,737** |   |

----

*Index*

**WAYNE        SAVINGS BANCSHARES, INC.**

**CONSOLIDATED        STATEMENTS OF INCOME**

|                                                                     |   | **2007** |     |   | **2006** |   |
|--------------------------------------------------------------------------|--------|----------|----------|--------|----------|--------|
| Interest                  income                                         |   |     |     |   |     |   |
| Loans                                                                    |   | $        | 4,090    |   |     | $      | 3,891 |   |
| Mortgage-backed                  securities                              |   |     | 922      |   |     |   | 699 |   |
| Investment                  securities                                   |   |     | 532      |   |     |   | 743 |   |
| Interest-bearing                  deposits and other                     |   |     | 155      |   |     |   | 103 |   |
| Total                  interest income                                   |   |     | 5,699    |   |     |   | 5,436 |   |
|                                                                     |   |     |     |   |     |   |   |   |
| Interest                  expense                                        |   |     |     |   |     |   |   |   |
| Deposits                                                                 |   |     | 2,531    |   |     |   | 2,232 |   |
| Borrowings                                                               |   |     | 386      |   |     |   | 283 |   |
| Total                  interest expense                                  |   |     | 2,917    |   |     |   | 2,515 |   |
|                                                                     |   |     |     |   |     |   |   |   |
| Net                  interest income                                     |   |     | 2,782    |   |     |   | 2,921 |   |
| Provision                  for losses on loans                           |   |     | 30       |   |     |   | 30 |   |
| Net                  interest income after provision for losses on loans |   |     | 2,752    |   |     |   | 2,891 |   |
|                                                                     |   |     |     |   |     |   |   |   |
| Other                  income                                            |   |     |     |   |     |   |   |   |
| Increase                  in cash surrender value of life insurance      |   |     | 58       |   |     |   | 55 |   |
| Trust                  income                                            |   |     | 56       |   |     |   | 26 |   |
| Service                  fees, charges and other operating               |   |     | 334      |   |     |   | 345 |   |
| Total                  other income                                      |   |     | 448      |   |     |   | 426 |   |
|                                                                     |   |     |     |   |     |   |   |   |
| General,                  administrative and other expense               |   |     |     |   |     |   |   |   |
| Employee                  compensation and benefits                      |   |     | 1,383    |   |     |   | 1,398 |   |
| Occupancy                  and equipment                                 |   |     | 486      |   |     |   | 458 |   |
| Franchise                  taxes                                         |   |     | 96       |   |     |   | 118 |   |
| Amortization                  of intangible assets                       |   |     | 27       |   |     |   | 27 |   |
| Other                  operating                                         |   |     | 502      |   |     |   | 486 |   |
| Total                  general, administrative and other expense         |   |     | 2,494    |   |     |   | 2,487 |   |
|                                                                     |   |     |     |   |     |   |   |   |
| Income                  before income taxes                              |   |     | 706      |   |     |   | 830 |   |
|                                                                     |   |     |     |   |     |   |   |   |
| Federal                  incomes taxes                                   |   |     |     |   |     |   |   |   |
| Current                                                                  |   |     | 230      |   |     |   | 208 |   |
| Deferred                                                                 |   |     | (47      | )      |     |   | 29 |   |
| Total                  federal income taxes                              |   |     | 183      |   |     |   | 237 |   |
|                                                                     |   |     |     |   |     |   |   |   |
| NET                  INCOME                                              |   | **$**    | **523**  |   |     | **$**  | **593** |   |
|                                                                     |   |     |     |   |     |   |   |   |
| EARNINGS                  PER SHARE                                      |   |     |     |   |     |   |   |   |
| Basic                                                                    |   | **$**    | **0.17** |   |     | **$**  | **0.18** |   |
| Diluted                                                                  |   | **$**    | **0.17** |   |     | **$**  | **0.18** |   |
|                                                                     |   |     |     |   |     |   |   |   |
| DIVIDENDS                  PER SHARE                                     |   | **$**    | **0.12** |   |     | **$**  | **0.12** |   |

----

*Index*

**WAYNE        SAVINGS BANCSHARES, INC.**

**CONSOLIDATED        STATEMENTS OF COMPREHENSIVE INCOME**

|                                                                                      |   | **2007** |       |   | **2006** |   |
|-------------------------------------------------------------------------------------------|--------|----------|------------|--------|----------|--------|
|                                                                                      |   |     |       |   |     |   |
| Net                  income                                                               |   | $        | 523        |   |     | $      | 593 |   |
|                                                                                      |   |     |       |   |     |   |   |   |
| Other                  comprehensive loss, net of tax:                                    |   |     |       |   |     |   |   |   |
|   Unrealized                  holding losses on securities, net of tax benefits |   |     |       |   |     |   |   |   |
|     of                  $432 and $260, during the respective periods  |   |     | (839       | )      |     |   | (505 | ) |
|                                                                                      |   |     |       |   |     |   |   |   |
| Comprehensive                  income (loss)                                              |   | **$**    | **(316**   | **)**  |     | **$**  | **88** |   |
|                                                                                      |   |     |       |   |     |   |   |   |
| Accumulated                  comprehensive loss                                           |   | **$**    | **(1,315** | **)**  |     | **$**  | **(1,516** | **)** |

----

*Index*

**Wayne        Savings Bancshares, Inc.**

**CONSOLIDATED        STATEMENTS OF CASH FLOWS**

|                                                                                                                                             |   | **2007**    |    |   | **2006** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|---------|--------|----------|--------|
|                                                                                                                                             |   | (Unaudited) |    |   |     |   |
|                                                                                                                                             |   |        |    |   |     |   |
| Cash                  flows from operating activities:                                                                                           |   |        |    |   |     |   |
| Net                  income for the period                                                                                                       |   | $           | 523     |   |     | $      | 593 |   |
| Adjustments                  to reconcile net income to net cash provided by                                                                     |   |        |    |   |     |   |   |   |
| operating                  activities:                                                                                                           |   |        |    |   |     |   |   |   |
| Amortization                  of discounts and premiums on loans,                                                                                |   |        |    |   |     |   |   |   |
| investments                  and mortgage-backed securities – net                                                                          |   |        | (2      | )      |     |   | (8 | ) |
| Amortization                  of deferred loan origination fees                                                                                  |   |        | (13     | )      |     |   | (10 | ) |
| Depreciation                  and amortization                                                                                                   |   |        | 159     |   |     |   | 173 |   |
| Amortization                  of expense related to ESOP                                                                                         |   |        | -       |   |     |   | 20 |   |
| Provision                  for losses on loans                                                                                                   |   |        | 30      |   |     |   | 30 |   |
| Federal                  Home Loan Bank stock dividends                                                                                          |   |        | -       |   |     |   | (66 | ) |
| Increase                  in cash surrender value of life insurance                                                                              |   |        | (57     | )      |     |   | (55 | ) |
| Increase                  (decrease) in cash due to changes in:                                                                                  |   |        |    |   |     |   |   |   |
| Accrued                  interest receivable on loans                                                                                            |   |        | 51      |   |     |   | (29 | ) |
| Accrued                  interest receivable on mortgage-backed securities                                                                       |   |        | (25     | )      |     |   | (13 | ) |
| Accrued                  interest receivable on investments and interest-bearing                  deposits                                       |   |        | 197     |   |     |   | 129 |   |
| Prepaid                  expenses and other assets                                                                                               |   |        | (53     | )      |     |   | (341 | ) |
| Amortization                  of expense related to intangibles                                                                                  |   |        | 27      |   |     |   | 27 |   |
| Accrued                  interest payable                                                                                                        |   |        | 52      |   |     |   | 27 |   |
| Accounts                  payable on mortgage loans serviced for others                                                                          |   |        | (102    | )      |     |   | (104 | ) |
| Other                  liabilities                                                                                                               |   |        | 54      |   |     |   | 68 |   |
| Federal                  income taxes                                                                                                            |   |        |    |   |     |   |   |   |
| Current                                                                                                                                          |   |        | 145     |   |     |   | 73 |   |
| Deferred                                                                                                                                         |   |        | (47     | )      |     |   | 29 |   |
| Net                  cash provided by operating activities                                                                                       |   |        | 939     |   |     |   | 543 |   |
|                                                                                                                                             |   |        |    |   |     |   |   |   |
| Cash                  flows provided by (used in) investing activities:                                                                          |   |        |    |   |     |   |   |   |
| Purchase                  of investment securities designated as available for sale                                                              |   |        | (1,652  | )      |     |   | (1,101 | ) |
| Proceeds                  from maturity of investment securities designated as held to                  maturity                                 |   |        | 46      |   |     |   | 165 |   |
| Proceeds                  from maturity of investment securities designated as available                  for                  sale              |   |        | 10,990  |   |     |   | 5,465 |   |
| Purchase                  of mortgage-backed securities designated as available for                  sale                                        |   |        | (12,445 | )      |     |   | (8,478 | ) |
| Principal                  repayments on mortgage-backed securities designated as held to                  maturity                              |   |        | 119     |   |     |   | 103 |   |
| Principal                  repayments and sales of mortgage-backed securities designated as                  available                  for sale |   |        | 5,851   |   |     |   | 4,677 |   |
| Loan                  principal repayments                                                                                                       |   |        | 12,677  |   |     |   | 21,477 |   |
| Loan                  disbursements                                                                                                              |   |        | (17,160 | )      |     |   | (23,188 | ) |
| Purchase                  of office premises and equipment - net                                                                                 |   |        | (32     | )      |     |   | (32 | ) |
| Proceeds                  from sale of real estate acquired through foreclosure                                                                  |   |        | -       |   |     |   | 59 |   |
| Net                  cash used in investing activities                                                                                           |   |        | (1,606  | )      |     |   | (853 | ) |
|                                                                                                                                             |   |        |    |   |     |   |   |   |
| Net                  cash used in operating and investing activities                                                                             |   |        |    |   |     |   |   |   |
| (balance                  carried forward)                                                                                                       |   |        | (667    | )      |     |   | (310 | ) |

----

*Index*

**Wayne        Savings Bancshares, Inc.**

**CONSOLIDATED        STATEMENTS OF CASH FLOWS (CONTINUED)**

|                                                                               |   | **2007**    |      |   | **2006** |   |
|------------------------------------------------------------------------------------|--------|-------------|-----------|--------|----------|--------|
|                                                                               |   | (Unaudited) |      |
|                                                                               |   |        |      |   |     |   |
| Net                  cash used in operating and investing activities               |   |        |      |   |     |   |
| (balance                  brought forward)                                         |   | $           | (667      | )      |     | $      | (310 | ) |
|                                                                               |   |        |      |   |     |   |   |   |
| Cash                  flows provided by (used in) financing activities:            |   |        |      |   |     |   |   |   |
| Net                  increase (decrease)  in deposit accounts            |   |        | (7,163    | )      |     |   | 5,148 |   |
| Proceeds                  from Federal Home Loan Bank advances                     |   |        | 4,050     |   |     |   | 25,250 |   |
| Repayments                  of Federal Home Loan Bank advances                     |   |        | (3,100    | )      |     |   | (33,000 | ) |
| Advances                  by borrowers for taxes and insurance                     |   |        | (411      | )      |     |   | (427 | ) |
| Dividends                  paid on common stock                                    |   |        | (383      | )      |     |   | (401 | ) |
| Proceeds                  from exercise of stock options                           |   |        | -         |   |     |   | 279 |   |
| Tax                  benefits from exercise of stock options                       |   |        | -         |   |     |   | 5 |   |
| Net                  cash used in financing activities                             |   |        | (7,007    | )      |     |   | (3,146 | ) |
|                                                                               |   |        |      |   |     |   |   |   |
| Net                  decrease in cash and cash equivalents                         |   |        | (7,674    | )      |     |   | (3,456 | ) |
|                                                                               |   |        |      |   |     |   |   |   |
| Cash                  and cash equivalents at beginning of period                  |   |        | 17,215    |   |     |   | 14,123 |   |
|                                                                               |   |        |      |   |     |   |   |   |
| Cash                  and cash equivalents at end of period                        |   | **$**       | **9,541** |   |     | **$**  | **10,667** |   |
|                                                                               |   |        |      |   |     |   |   |   |
|                                                                               |   |        |      |   |     |   |   |   |
| Supplemental                  disclosure of cash flow information:                 |   |        |      |   |     |   |   |   |
| Cash                  paid during the period for:                                  |   |        |      |   |     |   |   |   |
| Federal                  income taxes                                              |   | **$**       | **85**    |   |     | **$**  | **130** |   |
|                                                                               |   |        |      |   |     |   |   |   |
| Interest                  on deposits and borrowings                               |   | **$**       | **2,865** |   |     | **$**  | **2,488** |   |
|                                                                               |   |        |      |   |     |   |   |   |
|                                                                               |   |        |      |   |     |   |   |   |
| Supplemental                  disclosure of noncash investing activities:          |   |        |      |   |     |   |   |   |
| Transfers                  from loans to real estate acquired through foreclosure  |   | **$**       | **113**   |   |     | **$**  | **-** |   |
|                                                                               |   |        |      |   |     |   |   |   |
| Unrealized                  losses on securities designated as available for sale, |   |        |      |   |     |   |   |   |
| net                  of related tax effects                                        |   | **$**       | **(839**  | **)**  |     | **$**  | **(505** | **)** |
|                                                                               |   |        |      |   |     |   |   |   |
| Dividends                  payable                                                 |   | **$**       | **383**   |   |     | **$**  | **403** |   |

----

*Index*

**Wayne        Savings Bancshares, Inc.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

| 1. | Basis                  of Presentation |
|----|----------------------------------------|

|   | *Critical                  Accounting Policy*– The Company’s critical accounting policy relates                  to the allowance for loan losses.  The Company has established a                  systematic method of periodically reviewing the credit quality                  of the loan                  portfolio in order to establish a sufficient allowance for loan                  losses.  The allowance for loan losses is based on management’s                  current judgments about the credit quality of individual loans                  and                  segments of the loan portfolio.  The allowance for loan losses                  is established through a provision, and considers all known internal                  and                  external factors that affect loan collectability as of the reporting                  date.  Such evaluation, which included a review of all loans on                  which full collectability may not be reasonably assured, considers                  among                  other matters, the estimated net realizable value or the fair value                  of the                  underlying collateral, economic conditions, historical loan loss                  experience, management’s knowledge of inherent risks in the portfolio that                  are probable and reasonably estimable and other factors that warrant                  recognition in providing an appropriate loan loss                  allowance.  Management has discussed the development and                  selection of this critical accounting policy with the audit committee                  of                  the Board of Directors. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | *Use                  of Estimates*** **– The preparation of financial                  statements in conformity with accounting principles generally accepted                  in                  the United States of America requires management to make estimates                  and                  assumptions that affect the reported amounts of assets and liabilities                  and                  disclosure of contingent assets and liabilities at the date of                  the                  financial statements and the reported amounts of revenues and expenses                  during the reporting period.  Actual results could differ from                  those estimates. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Principles                  of Consolidation |
|----|----------------------------------------------|

|   | The                  accompanying consolidated financial statements include Wayne Savings                  Bancshares, Inc. and the Company’s wholly-owned subsidiary, Wayne Savings                  Community Bank (“Wayne Savings” or the“Bank”). |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Wayne                  Savings has eleven banking locations in Wayne, Holmes, Ashland,                  Medina and                  Stark counties.  All significant intercompany transactions and                  balances have been eliminated in the                  consolidation. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

**Wayne        Savings Bancshares, Inc.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

| 3. | Earnings                  Per Share |
|----|-------------------------------------|

|   | Basic                  earnings per common share is computed based upon the weighted-average                  number of common shares outstanding during the period, less shares                  in the                  Company’s Employee Stock Ownership Plan (“ESOP”) that are unallocated and                  not committed to be released.  Diluted earnings per common share                  include the dilutive effect of all additional potential common                  shares                  issuable under the Company’s stock option plan.  The                  computations are as follows: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                 |   | **For                  the three months ended** |          |
|------------------------------------------------------|--------|-------------------------------------------------|---------------|
|                                                 |   | **June                  30,**                   |          |
|                                                 |   | **2007**                                        |          |   | **2006** |   |
|                                                 |   |                                            |          |   |   |   |
| Weighted-average                  common shares      |   |                                            |          |   |   |   |
|   outstanding                  (basic)     |   |                                            | 3,085,641     |   |   |   | 3,234,972 |   |
| Dilutive                  effect of assumed exercise |   |                                            |          |   |   |   |   |   |
|   of                  stock options        |   |                                            | -             |   |   |   | 13,024 |   |
| Weighted-average                  common shares      |   |                                            |          |   |   |   |   |   |
|   outstanding                  (diluted)   |   | ** **                                      | **3,085,641** |   |   | ** ** | **3,247,996** |   |
|                                                 |   |                                            |          |   |   |   |   |   |

| 4. | Stock                  Option Plan |
|----|------------------------------------|

----

*Index*

**Wayne        Savings Bancshares, Inc.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

|                                                |   |                                    |        |   |                            |   |      |       |   |       |          |   |   |       |      |   |          |       |
|-----------------------------------------------------|--------|-----------------------------------------|-------------|--------|---------------------------------|--------|-----------|------------|--------|------------|---------------|--------|--------|------------|-----------|--------|---------------|------------|
|                                                |   | **Three                  months ended** |        |   | **Year                  ended** |   |
|                                                |   | **June                  30,**           |        |   | **March                  31,**  |   |
|                                                |   | **2007**                                |        |   | **2007**                        |   |      | **2006**   |   |
|                                                |   |                                    |        |   | **Weighted-**                   |   |      |       |   |       | **Weighted-** |   |   |       |      |   | **Weighted-** |       |
|                                                |   |                                    |        |   | **average**                     |   |      |       |   |       | **average**   |   |   |       |      |   | **average**   |       |
|                                                |   |                                    |        |   | **exercise**                    |   |      |       |   |       | **exercise**  |   |   |       |      |   | **exercise**  |       |
|                                                |   | **Shares**                              |        |   | **price**                       |   |      | **Shares** |   |       | **price**     |   |   | **Shares** |      |   | **price**     |       |
|                                                |   |                                    |        |   |                            |   |      |       |   |       |          |   |   |       |      |   |          |       |
| Outstanding                  at beginning of period |   |                                    | 114,224     |   |                            | $      | 13.95     |       |   |       | 179,148       |   |   | $          | 13.92     |   |          |       | 214,204 |   |   | $ | 13.84 |   |
| Granted                                             |   |                                    | -           |   |                            |   | -         |       |   |       | -             |   |   |       | -         |   |          |       | - |   |   |   | - |   |
| Exercised                                           |   |                                    | -           |   |                            |   | -         |       |   |       | (60,924       | )      |   |       | 13.86     |   |          |       | (27,556 | ) |   |   | 13.32 |   |
| Forfeited                                           |   |                                    | -           |   |                            |   | -         |       |   |       | (4,000        | )      |   |       | 13.95     |   |          |       | (7,500 | ) |   |   | 13.95 |   |
|                                                |   |                                    |        |   |                            |   |      |       |   |       |          |   |   |       |      |   |          |       |   |   |   |   |   |   |
| Outstanding                  at end of period       |   | ** **                              | **114,224** |   |                            | **$**  | **13.95** |       |   | ** ** | **114,224**   |   |   | **$**      | **13.95** |   |          | ** ** | **179,148** |   |   | **$** | **13.92** |   |
|                                                |   |                                    |        |   |                            |   |      |       |   |       |          |   |   |       |      |   |          |       |   |   |   |   |   |   |
| Options                  exercisable at period-end  |   | ** **                              | **114,224** |   |                            | **$**  | **13.95** |       |   | ** ** | **114,224**   |   |   | **$**      | **13.95** |   |          | ** ** | **179,148** |   |   | **$** | **13.92** |   |
|                                                |   |                                    |        |   |                            |   |      |       |   |       |          |   |   |       |      |   |          |       |   |   |   |   |   |   |

| Number                  outstanding                                  | 114,224                     |
|----------------------------------------------------------------------|-----------------------------|
| Exercise                  price on all remaining options outstanding | 13.95                       |
| Weighted-average                  remaining contractual life         | 6.75                  years |

| 5. | Recent                  Accounting Developments |
|----|-------------------------------------------------|

|   | · | Separately                  recognize financial assets as servicing assets or servicing liabilities,                  each time it undertakes an obligation to service a financial asset                  by                  entering into certain kinds of servicing                  contracts; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Initially                  measure all separately recognized servicing assets and liabilities                  at fair                  value, if practicable; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Separately                  present servicing assets and liabilities subsequently measured                  at fair                  value in the statement of financial condition and additional disclosures                  for all separately recognized servicing assets and servicing                  liabilities. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

**Wayne        Savings Bancshares, Inc.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

| 5. | Recent                  Accounting Developments                  (continued) |
|----|------------------------------------------------------------------------------|

----

*Index*

**Wayne        Savings Bancshares, Inc.**

| **ITEM                  2** | **MANAGEMENT’S                  DISCUSSION AND ANALYSIS OF FINANCIAL** |   |
|-----------------------------|------------------------------------------------------------------------------|--------|
|                        | **CONDITION                  AND RESULTS OF OPERATIONS**                     |   |

**Average        Balance Sheet**

|                                               |   | For                  the three months ended June 30, |        |
|----------------------------------------------------|--------|------------------------------------------------------|-------------|
|                                               |   | 2007                                                 |        |   | 2006 |   |
|                                               |   | Average                                              |        |   |   |   |   | Average |   |   | Average |   |   |   |   |   | Average |   |
|                                               |   | Balance                                              |        |   | Interest |   |   | Rate |   |   | Balance |   |   | Interest |   |   | Rate |   |
|                                               |   | (Dollars                  in thousands)              |        |
| **Interest-earning                  assets**:      |   |                                                 |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                  receivable, net1            |   | $                                                    | 240,058     |   |   | $ | 4,090 |   |   |   | 6.82 | % |   | $ | 235,419 |   |   | $ | 3,891 |   |   |   | 6.61 | % |
| Mortgage-backed                                    |   |                                                 |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| securities2                                        |   |                                                 | 71,544      |   |   |   | 922 |   |   |   | 5.15 |   |   |   | 58,521 |   |   |   | 699 |   |   |   | 4.78 |   |
| Investment                  securities             |   |                                                 | 50,016      |   |   |   | 532 |   |   |   | 4.25 |   |   |   | 71,001 |   |   |   | 743 |   |   |   | 4.19 |   |
| Interest-bearing                  deposits3        |   |                                                 | 13,448      |   |   |   | 155 |   |   |   | 4.61 |   |   |   | 10,667 |   |   |   | 103 |   |   |   | 3.86 |   |
| Total                  interest-                   |   |                                                 |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| earning                  assets                    |   |                                                 | 375,066     |   |   |   | 5,699 |   |   |   | 6.08 |   |   |   | 375,608 |   |   |   | 5,436 |   |   |   | 5.79 |   |
| Non-interest-earning                  assets       |   |                                                 | 21,926      |   |   |   |   |   |   |   |   |   |   |   | 22,857 |   |   |   |   |   |   |   |   |   |
|                                               |   |                                                 |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                  assets                      |   | **$**                                                | **396,992** |   |   |   |   |   |   |   |   |   |   | **$** | **398,465** |   |   |   |   |   |   |   |   |   |
|                                               |   |                                                 |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Interest-bearing                  liabilities:** |   |                                                 |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                           |   | $                                                    | 326,468     |   |   |   | 2,531 |   |   |   | 3.10 |   |   | $ | 333,773 |   |   |   | 2,232 |   |   |   | 2.67 |   |
| Borrowings                                         |   |                                                 | 32,214      |   |   |   | 386 |   |   |   | 4.79 |   |   |   | 25,998 |   |   |   | 283 |   |   |   | 4.35 |   |
| Total                  interest-                   |   |                                                 |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| bearing                  liabilities               |   |                                                 | 358,682     |   |   |   | 2,917 |   |   |   | 3.25 |   |   |   | 359,771 |   |   |   | 2,515 |   |   |   | 2.80 |   |
| Non-interest                  bearing              |   |                                                 |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                                        |   |                                                 | 4,030       |   |   |   |   |   |   |   |   |   |   |   | 3,056 |   |   |   |   |   |   |   |   |   |
| Total                  liabilities                 |   |                                                 | 362,712     |   |   |   |   |   |   |   |   |   |   |   | 362,827 |   |   |   |   |   |   |   |   |   |
| Stockholders’                  equity        |   |                                                 | 34,280      |   |   |   |   |   |   |   |   |   |   |   | 35,638 |   |   |   |   |   |   |   |   |   |
| Total                  liabilities and             |   |                                                 |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| stockholders’                  equity        |   | **$**                                                | **396,992** |   |   |   |   |   |   |   |   |   |   | **$** | **398,465** |   |   |   |   |   |   |   |   |   |
| Net                  interest income               |   |                                                 |        |   |   | **$** | **2,782** |   |   |   |   |   |   |   |   |   |   | **$** | **2,921** |   |   |   |   |   |
| Interest                  rate spread4             |   |                                                 |        |   |   |   |   |   |   | ** ** | **2.83** | **%** |   |   |   |   |   |   |   |   |   | ** ** | **2.99** | **%** |
| Net                  yield on interest-            |   |                                                 |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| earning                  assets5                   |   |                                                 |        |   |   |   |   |   |   | ** ** | **2.97** | **%** |   |   |   |   |   |   |   |   |   | ** ** | **3.11** | **%** |
| Ratio                  of average interest-        |   |                                                 |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| earning                  assets to average         |   |                                                 |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| interest-bearing                  liabilities      |   |                                                 |        |   |   |   |   |   |   | ** ** | **104.57** | **%** |   |   |   |   |   |   |   |   |   | ** ** | **104.40** | **%** |
|                                               |   |                                                 |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| 1 | Includes                  non-accrual loan balances. |
|---|------------------------------------------------------|

| 2 | Includes                  mortgage-backed securities designated as available for                  sale. |
|---|---------------------------------------------------------------------------------------------------------|

| 3 | Includes                  federal funds sold and interest-bearing deposits in other financial                  institutions. |
|---|------------------------------------------------------------------------------------------------------------------------------|

| 4 | Interest                  rate spread represents the difference between the average yield                  on                  interest-earning assets and the average cost of interest-bearing                  liabilities. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | Net                  yield on interest-earning assets represents net interest income                  as a                  percentage of average interest-earning                  assets. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

**Wayne        Savings Bancshares, Inc.**

**MANAGEMENT’S        DISCUSSION AND ANALYSIS OF FINANCIAL**

**CONDITION        AND RESULTS OF OPERATIONS (CONTINUED)**

|                                                 |   | **June                  30, 2007**                        |        |   | **March                  31, 2007** |       |
|------------------------------------------------------|--------|-----------------------------------------------------------|-------------|--------|-------------------------------------|------------|
|                                                 |   | (Dollars                  in thousands)    |        |
| Mortgage                  loans:                     |   |                                                      |        |   |                                |       |   |   |   |   |   |   |
| One-                  to four-family residential(1)  |   | $                                                         | 143,245     |   |                                |       | 57.18 | % |   | $ | 144,311 |   |   |   | 57.87 | % |
| Residential                  construction loans      |   |                                                      | 2,985       |   |                                |       | 1.19 |   |   |   | 2,019 |   |   |   | .81 |   |
| Multi-family                  residential            |   |                                                      | 9,122       |   |                                |       | 3.65 |   |   |   | 8,938 |   |   |   | 3.59 |   |
| Non-residential                  real estate/land(2) |   |                                                      | 64,722      |   |                                |       | 25.84 |   |   |   | 61,873 |   |   |   | 24.82 |   |
| Total                  mortgage loans                |   |                                                      | 220,074     |   |                                |       | 87.86 |   |   |   | 217,141 |   |   |   | 87.09 |   |
| Other                  loans:                        |   |                                                      |        |   |                                |       |   |   |   |   |   |   |   |   |   |   |
| Consumer                  loans(3)                   |   |                                                      | 6,097       |   |                                |       | 2.43 |   |   |   | 5,460 |   |   |   | 2.19 |   |
| Commercial                  business loans           |   |                                                      | 24,332      |   |                                |       | 9.71 |   |   |   | 26,730 |   |   |   | 10.72 |   |
| Total                  other loans                   |   |                                                      | 30,429      |   |                                |       | 12.14 |   |   |   | 32,190 |   |   |   | 12.91 |   |
| Total                  loans before net items        |   |                                                      | 250,503     |   |                                | ** ** | **100.00** | **%** |   |   | 249,331 |   |   | ** ** | **100.00** | **%** |
| Less:                                                |   |                                                      |        |   |                                |       |   |   |   |   |   |   |   |   |   |   |
| Loans                  in process                    |   |                                                      | 4,101       |   |                                |       |   |   |   |   | 7,334 |   |   |   |   |   |
| Deferred                  loan origination fees      |   |                                                      | 429         |   |                                |       |   |   |   |   | 425 |   |   |   |   |   |
| Allowance                  for loan losses           |   |                                                      | 1,571       |   |                                |       |   |   |   |   | 1,523 |   |   |   |   |   |
| Total                  loans receivable, net         |   | **$**                                                     | **244,402** |   |                                |       |   |   |   | **$** | **240,049** |   |   |   |   |   |
| Mortgage-backed                  securities, net(4)  |   | **$**                                                     | **74,627**  |   |                                |       |   |   |   | **$** | **69,065** |   |   |   |   |   |

| (1) | Includes                  equity loans collateralized by second mortgages in the aggregate                  amount of                  $18.4 million and $19.2 million as of June 30, 2007 and March 31,                  2007,                  respectively.  Such loans have been underwritten on                  substantially the same basis as the Company’s first mortgage                  loans. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes                  land loans of $211,000 and $204,000 as of June 30, 2007 and March                  31,                  2007, respectively. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes                  second mortgage loans of $333,000 and $425,000 as of June 30, 2007                  and                  March 31, 2007, respectively. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Includes                  mortgage-backed securities designated as available for                  sale. |
|-----|---------------------------------------------------------------------------------------------------------|

----

*Index*

**Wayne        Savings Bancshares, Inc.**

**MANAGEMENT’S        DISCUSSION AND ANALYSIS OF FINANCIAL**

**CONDITION        AND RESULTS OF OPERATIONS (CONTINUED)**

|                                                            |   | **June                  30,**           |      |   | **March                  31,** |       |
|-----------------------------------------------------------------|--------|-----------------------------------------|-----------|--------|--------------------------------|------------|
|                                                            |   | **2007**                                |      |   | **2007**                       |       |
|                                                            |   | (Dollars                  in thousands) |      |
| Past                  due loans 30-89 days:                     |   |                                    |      |   |                           |       |
| Mortgage                  loans:                                |   |                                    |      |   |                           |       |
| One-                  to four-family residential                |   | $                                       | 915       |   |                           | $          | 270 |   |
| Nonresidential                                                  |   |                                    | -         |   |                           |       | - |   |
| Land                                                            |   |                                    | -         |   |                           |       | - |   |
| Non-mortgage                  loans:                            |   |                                    |      |   |                           |       |   |   |
| Commercial                  business loans                      |   |                                    | 264       |   |                           |       | - |   |
| Consumer                  loans                                 |   |                                    | 3         |   |                           |       | 11 |   |
|                                                            |   | **$**                                   | **1,182** |   |                           | **$**      | **281** |   |
|                                                            |   |                                    |      |   |                           |       |   |   |
| Non-performing                  loans:                          |   |                                    |      |   |                           |       |   |   |
| Mortgage                  loans:                                |   |                                    |      |   |                           |       |   |   |
| One-                  to four-family residential                |   | $                                       | 539       |   |                           | $          | 683 |   |
| All                  other mortgage loans                       |   |                                    | -         |   |                           |       | - |   |
| Non-mortgage                  loans:                            |   |                                    |      |   |                           |       |   |   |
| Commercial                  business loans                      |   |                                    | -         |   |                           |       | 267 |   |
| Consumer                                                        |   |                                    | -         |   |                           |       | - |   |
| Total                  non-performing loans                     |   |                                    | 539       |   |                           |       | 950 |   |
| Total                  real estate acquired through foreclosure |   |                                    | 113       |   |                           |       | - |   |
| Total                  non-performing assets                    |   | **$**                                   | **652**   |   |                           | **$**      | **950** |   |
|                                                            |   |                                    |      |   |                           |       |   |   |
| Total                  non-performing loans to net              |   |                                    |      |   |                           |       |   |   |
| loans                  receivable                               |   | ** **                              | **0.22**  | **%**  |                           | ** ** | **0.40** | **%** |
| Total                  non-performing loans to total assets     |   | ** **                              | **0.14**  | **%**  |                           | ** ** | **0.23** | **%** |
| Total                  non-performing assets to total assets    |   | ** **                              | **0.16**  | **%**  |                           | ** ** | **0.23** | **%** |

----

*Index*

**Wayne        Savings Bancshares, Inc.**

**MANAGEMENT’S        DISCUSSION AND ANALYSIS OF FINANCIAL**

**CONDITION        AND RESULTS OF OPERATIONS (CONTINUED)**

|                                                             |   | **For                  the three months ended** |        |   | **For                  the yearended** |       |
|------------------------------------------------------------------|--------|-------------------------------------------------|-------------|--------|----------------------------------------|------------|
|                                                             |   | **June                  30, 2007**              |        |   | **March                  31, 2007**    |       |
|                                                             |   | (Dollars                  in thousands)         |        |
|                                                             |   |                                            |        |   |                                   |       |
| Loans                  receivable, net                           |   | **$**                                           | **244,402** |   |                                   | **$**      | **240,049** |   |
| Average                  loans receivable, net                   |   | **$**                                           | **240,058** |   |                                   | **$**      | **237,429** |   |
| Allowance                  balance (at beginning of period)      |   | $                                               | 1,523       |   |                                   | $          | 1,484 |   |
| Charge-offs:                                                     |   |                                            |        |   |                                   |       |   |   |
| Mortgage                  loans:                                 |   |                                            |        |   |                                   |       |   |   |
| One-                  to four-family                             |   |                                            | -           |   |                                   |       | (31 | ) |
| Residential                  construction                        |   |                                            | -           |   |                                   |       | - |   |
| Multi-family                  residential                        |   |                                            | -           |   |                                   |       | - |   |
| Non-residential                  real estate and land            |   |                                            | -           |   |                                   |       | (31 | ) |
| Other                  loans:                                    |   |                                            |        |   |                                   |       |   |   |
| Consumer                                                         |   |                                            | -           |   |                                   |       | (21 | ) |
| Commercial                                                       |   |                                            | -           |   |                                   |       | - |   |
| Gross                  charge-offs                               |   |                                            | -           |   |                                   |       | (83 | ) |
| Recoveries:                                                      |   |                                            |        |   |                                   |       |   |   |
| Mortgage                  loans:                                 |   |                                            |        |   |                                   |       |   |   |
| One-                  to four-family                             |   |                                            | 13          |   |                                   |       | 1 |   |
| Residential                  construction                        |   |                                            | -           |   |                                   |       | - |   |
| Multi-family                  residential                        |   |                                            | -           |   |                                   |       | - |   |
| Non-residential                  real estate and land            |   |                                            | -           |   |                                   |       | - |   |
| Other                  loans:                                    |   |                                            |        |   |                                   |       |   |   |
| Consumer                                                         |   |                                            | 5           |   |                                   |       | 21 |   |
| Commercial                                                       |   |                                            | -           |   |                                   |       | - |   |
| Gross                  recoveries                                |   |                                            | 18          |   |                                   |       | 22 |   |
| Net                  (charge-offs) recoveries                    |   |                                            | 18          |   |                                   |       | (61 | ) |
| Provision                  charged to operations                 |   |                                            | 30          |   |                                   |       | 100 |   |
| Allowance                  for loans losses balance (at end      |   |                                            |        |   |                                   |       |   |   |
| of                  period)                                      |   | **$**                                           | **1,571**   |   |                                   | **$**      | **1,523** |   |
| Allowance                  for loan losses as a percent of loans |   |                                            |        |   |                                   |       |   |   |
| receivable,                  net at end of period                |   | ** **                                      | **0.64**    | **%**  |                                   | ** ** | **0.63** | **%** |
| Net                  loans charged off as a percent of average   |   |                                            |        |   |                                   |       |   |   |
| loans                  receivable, net                           |   | ** **                                      | **0.00**    | **%**  |                                   | ** ** | **0.03** | **%** |
| Ratio                  of allowance for loan losses to non-      |   |                                            |        |   |                                   |       |   |   |
| performing                  loans at end of period               |   | ** **                                      | **291.47**  | **%**  |                                   | ** ** | **160.32** | **%** |

----

*Index*

**Wayne        Savings Bancshares, Inc.**

**MANAGEMENT’S        DISCUSSION AND ANALYSIS OF FINANCIAL**

**CONDITION        AND RESULTS OF OPERATIONS (CONTINUED)**

**e**
** **

----

*Index*

**Wayne        Savings Bancshares, Inc.**

**MANAGEMENT’S        DISCUSSION AND ANALYSIS OF FINANCIAL**

**CONDITION        AND RESULTS OF OPERATIONS (CONTINUED)**

----

*Index*

**Wayne        Savings Bancshares, Inc.**

**MANAGEMENT’S        DISCUSSION AND ANALYSIS OF FINANCIAL**

**CONDITION        AND RESULTS OF OPERATIONS (CONTINUED)**

----

*Index*

**Wayne        Savings Bancshares, Inc.**

**MANAGEMENT’S        DISCUSSION AND ANALYSIS OF FINANCIAL**

**CONDITION        AND RESULTS OF OPERATIONS (CONTINUED)**

| **ITEM                  3** | **QUANTITATIVE                  AND QUALITATIVE DISCLOSURES ABOUT MARKET                  RISK** |
|-----------------------------|--------------------------------------------------------------------------------------------------|

| **ITEM                  4** | **CONTROLS                  AND PROCEDURES** |
|-----------------------------|----------------------------------------------|

|   | (a) | Evaluation                  of disclosure controls and                  procedures. |
|--------|-----|-------------------------------------------------------------------------------------|

|   | (b) | Changes                  in internal controls. |
|--------|-----|------------------------------------------------|

----

*Index*

**Wayne        Savings Bancshares, Inc.**

R

| ITEM                  1. | Legal                  Proceedings |
|--------------------------|------------------------------------|

| ITEM                  1A. | Risk                  Factors |
|---------------------------|-------------------------------|

| ITEM                  2. | Unregistered                  Sales of Equity Securities and Use of                  Proceeds |
|--------------------------|-----------------------------------------------------------------------------------------------|

|   | (a) | Not                  applicable |
|--------|-----|---------------------------------|

|   | (b) | Not                  applicable |
|--------|-----|---------------------------------|

|   | (c) | The                  following table sets forth certain information regarding repurchases                  by                  the Company for the quarter ended June 30,                  2007. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                       |                         |                        | Total                  # of       | Maximum                  # of shares   |
|--------------------------------------------|------------------------------|-----------------------------|-----------------------------------|----------------------------------------|
|                                       | Total                        | Average                     | shares                  purchased | which                  may still be    |
|                                       | #                  of shares | price                  paid | as                  part of the   | purchased                  as part     |
| Period                                     | purchased                    | per                  share  | announced                  plan   | of                  the announced plan |
|                                       |                         |                        |                              |                                   |
| April                  1-30, 2007          | -                            | $   -        | -                                 | 112,967                                |
| May  1-31,                  2007 | -                            | $   -        | -                                 | 112,967                                |
| June                  1-30, 2007           | -                            | $   -        | -                                 | 112,967                                |

| ITEM                  3. | Defaults                  Upon Senior Securities |
|--------------------------|--------------------------------------------------|

| ITEM                  4. | Submission                  of Matters to a Vote of Security                  Holders |
|--------------------------|---------------------------------------------------------------------------------------|

----

*Index*

**Wayne        Savings Bancshares, Inc.**

| ITEM                  5. | Other                  Information |
|--------------------------|------------------------------------|

| ITEM                  6. | Exhibits |
|--------------------------|----------|

|   |   | EX-31.1 | Certification                  of Chief Executive Officer pursuant                      |   |
|--------|--------|---------|-----------------------------------------------------------------------------------------|--------|
|   |   |    |   to                  Section 302 of the Sarbanes-Oxley Act of                |   |
|   |   |    |   2002,                  18 U.S.C. Section 1350                               |   |
|   |   |    |                                                                                    |   |
|   |   | EX-31.2 | Certification                  of Chief Financial Officer pursuant                      |   |
|   |   |    |   to                  Section 302 of the Sarbanes-Oxley Act of                |   |
|   |   |    |   2002,                  18 U.S.C. Section 1350                               |   |
|   |   |    |                                                                                    |   |
|   |   | EX-32   | Written                  Statement of Chief Executive Officer and Chief                 |   |
|   |   |    |   Financial                  Officer furnished pursuant to Section 906 of the |   |
|   |   |    |   Sarbanes-Oxley                  Act of 2002, 18 U.S.C. Section 1350         |   |

----

*Index*

**SIGNATURES**

| Date:        | August                  13, 2007 |  By:                    | /s/                  Phillip E. Becker                            |
|-------------------|----------------------------------|-----------------------------------|-------------------------------------------------------------------|
|              |                             |                              | Phillip                  E. Becker                                |
|              |                             |                              | President                  and Chief  Executive Officer |
|              |                             |                              |                                                              |
|              |                             |                              |                                                              |
|              |                             |                              |                                                              |
| Date:   | August                  13, 2007 |  By:                    | /s/                  H. Stewart Fitz Gibbon III                   |
|              |                             |                              | H.                  Stewart Fitz Gibbon III                       |
|              |                             |                              | Executive                  Vice President and                     |
|              |                             |                              | Chief                  Financial Officer                          |