Wells Financial Corp. Announces Annual Results and Cash Dividend
WELLS, Minn., Jan. 21 /PRNewswire-FirstCall/ --
Selected Financial Data (Dollars in Thousands, except per share data) (unaudited) |
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Quarter Ended |
Year Ended |
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2009 |
2008 |
2009 |
2008 |
||
Net Income |
$ 440 |
$ 455 |
$ 2,110 |
$ 1,245 |
|
Basic earnings per share |
$ 0.57 |
$ 0.59 |
$ 2.72 |
$ 1.59 |
|
Diluted earnings per share |
$ 0.57 |
$ 0.58 |
$ 2.71 |
$ 1.58 |
|
Return on average equity (1) |
8.02% |
8.90% |
9.85% |
6.03% |
|
Return on average assets (1) |
0.68% |
0.73% |
0.81% |
0.50% |
|
Net interest rate spread |
3.26% |
3.47% |
3.29% |
3.25% |
|
Net interest rate margin |
3.32% |
3.57% |
3.36% |
3.35% |
|
Book value per share |
$ 28.42 |
$ 26.58 |
$ 28.42 |
$ 26.58 |
|
(1) Annualized |
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Lonnie R. Trasamar, President of Wells Financial Corp. (the Company) (OTC Bulletin Board: WEFP), the holding company of Wells Federal Bank (the Bank), announced annual earnings for 2009 of $2,110,000, up $865,000 or 69.5%, when compared to 2008. Basic and diluted earnings per share for 2009 were $2.72 and $2.71, respectively, up $1.13, when compared to 2008. The increase in net income for 2009 when compared to 2008 resulted, primarily, from an increase in the gain on sale of loans to the secondary market. During 2009 the Bank saw increased activity in the refinancing of loans sold to the secondary market due to a decrease in secondary market interest rates and programs introduced by the secondary market that streamlined the refinance process for the Bank's customers. Net income for the quarter ended December 31, 2009 was $440,000, down $15,000 or 3.3%, when compared to the same period in 2008. Basic and diluted earnings per share for the fourth quarter of 2009 were $0.57. Basic and diluted earnings per share for the fourth quarter of 2008 were $0.59 and $0.58, respectively.
When comparing December 31, 2009 to December 31, 2008, total assets increased by $12,168,000 due to a $32.3 million increase in cash. This increase in cash resulted from an increase in customer deposits of $26 million. Partially offsetting the increase in cash was a $22 million decrease in loans receivable. The decrease in loans receivable resulted, primarily, from decreases in loans for agricultural land and home equity line of credit loans. Liabilities increased by $10.7 million during 2009 due to the increase in deposits mentioned above being partially offset by a $15.4 million decrease in borrowed funds.
Cash Dividend Announcement
On January 19, 2010, the Company's Board of Directors declared a $0.26 per share cash dividend, payable on February 23, 2010 to shareholders of record on February 09, 2010. This is the seventeenth consecutive quarter that the Company has paid a $0.26 dividend.
Forward-looking Statements
Statements in this press release that are not strictly historical may be "forward-looking" statements, which involve risks and uncertainties. The foregoing material may contain forward-looking statements concerning the financial condition, results of operations and business of the Company. We caution that such statements are subject to a number of uncertainties and actual results could differ materially and, therefore, readers should not place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims, any obligation to publicly release the results of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances arising after the date hereof.
**An unaudited consolidated balance sheet and income statement are part of this press release**
Wells Financial Corp. and Subsidiary Consolidated Statement of Financial Condition (Dollars in Thousands) (Unaudited) |
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ASSETS |
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12/31/09 |
12/31/08 |
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Cash, including interest-bearing accounts: |
$ 41,013 |
$ 8,744 |
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12/31/09 $34,777; 12/31/08 $2,689 |
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Certificates of deposit |
175 |
700 |
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Securities available for sale |
10,698 |
8,420 |
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Federal Home Loan Stock |
2,728 |
3,302 |
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Loans held for sale |
1,931 |
2,974 |
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Loans receivable, net |
195,423 |
217,425 |
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Accrued interest receivable |
1,564 |
1,813 |
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Prepaid Income Taxes |
- |
- |
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Premises and equipment |
3,693 |
3,961 |
|||
Mortgage servicing rights, net |
1,373 |
1,294 |
|||
Other assets |
6,623 |
4,420 |
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TOTAL ASSETS |
$ 265,221 |
$ 253,053 |
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LIABILITIES AND EQUITY |
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LIABILITIES: |
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Deposits |
$ 208,871 |
$ 182,888 |
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Borrowed funds |
31,435 |
46,806 |
|||
Advances from borrowers for taxes and insurance |
2,233 |
2,081 |
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Income taxes: |
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Deferred |
53 |
205 |
|||
Accrued interest payable |
61 |
84 |
|||
Accrued expenses and other liabilities |
505 |
376 |
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TOTAL LIABILITIES |
243,158 |
232,440 |
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STOCKHOLDER'S EQUITY: |
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Common stock, $.10 par value; 7,000.000 shares |
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authorized; 2,187,500 shares issued |
$ 219 |
$ 219 |
|||
Additional paid in capital |
17,166 |
17,143 |
|||
Retained earnings, substantially restricted |
32,615 |
31,312 |
|||
Other comprehensive income |
131 |
23 |
|||
Treasury stock, at cost, 1,411,260 shares at December |
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31, 2009; 1,412,060 shares at December 31, 2008 |
(28,068) |
(28,084) |
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TOTAL EQUITY |
22,063 |
20,613 |
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TOTAL LIABILITIES AND EQUITY |
$ 265,221 |
$ 253,053 |
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Wells Financial Corp. and Subsidiary Consolidated Statement of Income (Dollars in thousands, except per share data) (unaudited) |
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Three Months |
Twelve Months |
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December 31, |
December 31, |
|||||||
2009 |
2008 |
2009 |
2008 |
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Interest and dividend income |
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Loans receivable: |
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Residential loans |
$ 615 |
$ 683 |
$ 2,689 |
$ 2,818 |
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Commercial Loans |
583 |
638 |
2,478 |
2,717 |
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Ag Real Estate Loans |
783 |
909 |
3,398 |
3,508 |
||||
Consumer and other loans |
1,170 |
1,308 |
4,754 |
5,123 |
||||
Investment securities and other interest- |
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bearings deposits |
109 |
124 |
437 |
688 |
||||
Total interest income |
3,260 |
3,662 |
13,756 |
14,854 |
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Interest expense |
||||||||
Deposits |
949 |
1,144 |
4,000 |
5,140 |
||||
Borrowed funds |
302 |
418 |
1,591 |
1,870 |
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Total interest expense |
1,251 |
1,562 |
5,591 |
7,010 |
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Net interest income |
2,009 |
2,100 |
8,165 |
7,844 |
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Provision for loan losses |
145 |
150 |
980 |
503 |
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Net interest income after |
||||||||
provision for loan losses |
1,864 |
1,950 |
7,185 |
7,341 |
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Noninterest income |
||||||||
Gain on sale of loans |
282 |
172 |
2,365 |
853 |
||||
Loan servicing fees |
240 |
225 |
933 |
910 |
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Insurance commissions |
154 |
150 |
636 |
601 |
||||
Fees and service charges |
158 |
164 |
605 |
683 |
||||
Other |
249 |
73 |
463 |
334 |
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Total noninterest income |
1,083 |
784 |
5,002 |
3,381 |
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Noninterest expense |
||||||||
Compensation and benefits |
1,135 |
987 |
4,269 |
4,089 |
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Occupancy and equipment |
246 |
282 |
1,010 |
1,175 |
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Federal insurance premiums |
196 |
8 |
325 |
28 |
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Data processing |
174 |
184 |
738 |
780 |
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Advertising |
58 |
62 |
238 |
238 |
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Amortization & Valuation adjustments for MSR's |
89 |
135 |
461 |
552 |
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Impairment of Securities Available for Sale |
- |
- |
- |
485 |
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Other |
387 |
332 |
1,791 |
1,380 |
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Total noninterest expense |
2,285 |
1,990 |
8,832 |
8,727 |
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Income before income taxes |
662 |
744 |
3,355 |
1,995 |
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Income tax expense |
222 |
289 |
1,245 |
750 |
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Net Income |
$ 440 |
$ 455 |
$ 2,110 |
$ 1,245 |
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Earnings per share |
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Basic earnings per share |
$ 0.57 |
$ 0.59 |
$ 2.72 |
$ 1.59 |
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Diluted earnings per share |
$ 0.57 |
$ 0.58 |
$ 2.71 |
$ 1.58 |
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SOURCE Wells Financial Corp.
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