Wells Financial Corp. Announces First Quarter Results

WELLS, Minn., April 16, 2014 /PRNewswire/ -- 

Selected Financial Data
(Dollars in Thousands, except per share data)
(unaudited)




Quarter Ended March 31,


2014

2013




Net Income

$      251

$      229

Basic earnings per share

$     0.33

$     0.30

Diluted earnings per share

$     0.33

$     0.30

Return on average equity (1)

3.8%

3.5%

Return on average assets (1)

0.4%

0.4%

Net interest rate spread

3.4%

3.3%

Net interest rate margin

3.4%

3.4%

Book value per share

$   34.54

$  34.09

(1) Annualized



Lonnie R. Trasamar, President of Wells Financial Corp. (OTC BB:WEFP)(the Company), the holding company of Wells Federal Bank (the Bank), announced earnings for the first quarter of 2014 of $251,000, up $22,000 or 9.6% when compared to the first quarter of 2013.  Basic and diluted earnings per share for the first quarter of 2014 were $0.33, up $0.03 or 10.0% when compared to the first quarter of 2013.

When comparing the first quarter of 2014 with the first quarter of 2013, net interest income increased by $33,000, or 1.7%.  The provision for loan loss decreased by $205,000, or 54.7%.   Noninterest income decreased by $308,000, or 25.5% during 2014 due, primarily, to a decrease in the gain on sale of loans.  Fewer loans for sale to the secondary market were originated in 2014 when compared to 2013, due to changes in market rates.  Noninterest expense decreased by $107,000, or 4.5%, during the first quarter of 2014 when compared to the same period in 2013.

In accordance with the Bank's internal classification of assets policy, management evaluates the loan portfolio on a quarterly basis to identify and determine the adequacy of the allowance for loan loss and adjusts the level of the allowance for loan loss through the provision for loan loss.  As stated above, the provision for loan loss decreased by $205,000 for the first quarter of 2014 when compared to the same period in 2013.  As of March 31, 2014 and 2013, the balance in the allowance for loan losses and the allowance for loan losses as a percentage of total loans were $1,826,000 and $1,878,000 and 1.1% and 1.2%, respectively.

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)






ASSETS







03/31/14


12/31/13






Cash, including interest-bearing accounts:


$     15,443


$     12,625

    03/31/14 $11,591; 12/31/13  $5,370





Certificates of deposit


3,450


3,695

Fed Funds Sold


11,500


5,000

Securities available for sale


36,458


41,569

Securities held to maturity


-


-

Federal Home Loan Bank Stock, at cost


2,036


2,021

Loans held for sale


1,307


1,952

Loans receivable, net


163,924


165,401

Accrued interest receivable


724


804

Prepaid income taxes


234


-

Foreclosed real estate


4,386


4,340

Premises and equipment


2,995


3,040

Mortgage servicing rights, net


1,934


1,952

Other assets


939


1,402

              TOTAL ASSETS


$   245,330


$   243,801











LIABILITIES AND EQUITY










LIABILITIES:





    Deposits


$   214,164


$   214,370

    Borrowed funds


-


-

    Advances from borrowers for taxes and insurance


3,924


2,614

    Income taxes:





       Deferred


-


-

    Accrued interest payable


54


6

    Accrued expenses and other liabilities


883


728

          TOTAL LIABILITIES


219,025


217,718






STOCKHOLDER'S EQUITY:





    Common stock, $.10 par value; 7,000.000 shares





        authorized; 2,187,500 shares issued


$          219


$          219

    Additional paid in capital


17,094


17,086

    Retained earnings, substantially restricted


37,372


37,235

    Other comprehensive income


(10)


(264)

    Treasury stock, at cost, 1,425,885 shares at March





      31, 2014; 1,418,180 shares at December 31, 2013


(28,370)


(28,193)

          TOTAL EQUITY


26,305


26,083






               TOTAL LIABILITIES AND EQUITY


$   245,330


$   243,801




Wells Financial Corp. and Subsidiary

Consolidated Statement of Income

(Dollars in thousands, except per share data)

(Unaudited)



Three Months Ended



March 31,



2014


2013






Interest and dividend income





  Loans receivable:





    Residential loans


$                653


$                631

    Commercial Loans


307


313

    Ag Real Estate Loans


331


338

    Consumer and other loans


626


689

  Investment securities and other interest-





    bearings deposits


194


168

               Total interest income


2,111


2,139

Interest expense





  Deposits


160


220

  Borrowed funds


-


1

               Total interest expense


160


221

               Net interest income


1,951


1,918

Provision for loan losses


170


375

               Net interest income after





                 provision for loan losses


1,781


1,543

Noninterest income





  Gain on sale of loans


176


536

  Loan servicing fees


225


234

  Insurance commissions


141


209

  Fees and service charges


105


111

  Other


252


117

               Total noninterest income


899


1,207

Noninterest expense





  Compensation and benefits


1,179


1,063

  Occupancy and equipment


208


219

  Federal insurance premiums


54


49

  Data processing


215


210

  Advertising


48


59

  Amortization & Valuation adjustments for MSR's

71


118

  Other


486


650

               Total noninterest expense


2,261


2,368

               Income before income taxes


419


382

Income tax expense


168


153

               Net Income


$                251


$                229






Earnings per share





    Basic earnings per share


$               0.33


$               0.30

    Diluted earnings per share


$               0.33


$               0.30

 

SOURCE Wells Financial Corp.



More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.