WELLS, Minn., Oct. 18, 2012 /PRNewswire/ --
Selected Financial Data |
|||||
Quarter Ended September 30, |
Nine Months Ended September 30, |
||||
2012 |
2011 |
2012 |
2011 |
||
Net Income |
$ 552 |
$ 427 |
$ 1,478 |
$ 1,099 |
|
Basic earnings per share |
$ 0.71 |
$ 0.54 |
$ 1.88 |
$ 1.40 |
|
Diluted earnings per share |
$ 0.71 |
$ 0.54 |
$ 1.88 |
$ 1.40 |
|
Return on average equity (1) |
8.5% |
7.0% |
7.7% |
6.1% |
|
Return on average assets (1) |
0.9% |
0.7% |
0.8% |
0.6% |
|
Net interest rate spread |
3.8% |
3.9% |
3.8% |
3.9% |
|
Net interest rate margin |
3.8% |
4.0% |
3.8% |
4.0% |
|
Book value per share |
$ 33.57 |
$ 31.21 |
$ 33.57 |
$ 31.21 |
|
(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 third quarter of 2012 of $552,000, up $125,000 or 29.3%% when compared to the third quarter of 2011. Basic and diluted earnings per share for the third quarter of 2012 were $0.71, up $0.17 or 31.5% when compared to the third quarter of 2011.
When comparing the third quarter of 2012 with the third quarter of 2011, the increase in net income was due, primarily, from an increase in the origination and sale to the secondary market of loans on residential properties.
Net interest income decreased by $216,000, or 9.7%, for the third quarter of 2012 when compared to the same period in 2011. Current market conditions dictate lower rates on loans that meet the Company's conservative underwriting standards. This has resulted in interest margin compression which is the primary reason for the decrease in net interest income.
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. The provision for loan losses decreased by $71,000, or 18.9%, for the third quarter of 2012 when compared to the same period in 2011. As of September 30, 2012 and 2011, the balance in the allowance for loan losses and the allowance for loan losses as a percentage of total loans were $1,938,000 and $2,800,000 and 1.2% and 1.6%, respectively.
When comparing the third quarter of 2012 with the third quarter of 2011 noninterest income increased by $464,000, or 44.7%, and noninterest expense increased by $80,000, or 3.6%. The increase in noninterest income was due, primarily, from an increase in the origination and sale to the secondary market of loans on residential properties discussed above.
When comparing the first nine months of 2012 with the same period in 2011, net income increased by $379,000, or 34.5%, and basic and diluted earnings per share increased by $0.48, or 34.3%. These increases resulted, primarily, from an increase in the origination and sale of residential loans to the secondary market discussed above.
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 |
||||
09/30/12 |
12/31/11 |
|||
Cash, including interest-bearing accounts: |
||||
09/30/12 $4,068; 12/31/11 $6,526 |
$ 22,134 |
$ 12,499 |
||
Certificates of deposit |
5,414 |
3,735 |
||
Fed Funds Sold |
15,000 |
12,590 |
||
Securities available for sale |
24,679 |
23,006 |
||
Federal Home Loan Stock |
2,223 |
2,302 |
||
Loans held for sale |
6,743 |
3,253 |
||
Loans receivable, net |
155,807 |
170,016 |
||
Accrued interest receivable |
1,032 |
1,029 |
||
Foreclosed real estate |
3,018 |
4,501 |
||
Premises and equipment |
3,245 |
3,398 |
||
Mortgage servicing rights, net |
1,891 |
1,776 |
||
Other assets |
1,408 |
1,370 |
||
TOTAL ASSETS |
$ 242,594 |
$ 239,475 |
||
LIABILITIES AND EQUITY |
||||
LIABILITIES: |
||||
Deposits |
$ 211,530 |
$ 210,555 |
||
Borrowed funds |
80 |
1,000 |
||
Advances from borrowers for taxes and insurance |
3,462 |
2,376 |
||
Accrued interest payable |
188 |
25 |
||
Accrued expenses and other liabilities |
1,093 |
560 |
||
TOTAL LIABILITIES |
216,353 |
214,516 |
||
STOCKHOLDER'S EQUITY: |
||||
Common stock, $.10 par value; 7,000,000 shares authorized; 2,187,500 shares issued |
$ 219 |
$ 219 |
||
Additional paid in capital |
17,133 |
17,121 |
||
Retained earnings, substantially restricted |
36,397 |
35,115 |
||
Other comprehensive income |
441 |
367 |
||
Treasury stock, at cost, 1,405,864 shares at September 30, 2012; 1,401,040 shares at December 31, 2011 |
(27,949) |
(27,863) |
||
TOTAL EQUITY |
26,241 |
24,959 |
||
TOTAL LIABILITIES AND EQUITY |
$ 242,594 |
$ 239,475 |
Wells Financial Corp. and Subsidiary |
|||||||||
Consolidated Statement of Income |
|||||||||
(Dollars in thousands, except per share data) |
|||||||||
(Unaudited) |
|||||||||
Three Months Ended |
Nine Months Ended |
||||||||
September 30, |
September 30, |
||||||||
2012 |
2011 |
2012 |
2011 |
||||||
Interest and dividend income |
|||||||||
Loans receivable: |
|||||||||
Residential loans |
$ 677 |
$ 590 |
$ 2,084 |
$ 1,762 |
|||||
Commercial Loans |
309 |
512 |
1,048 |
1,571 |
|||||
Ag Real Estate Loans |
364 |
474 |
1,144 |
1,577 |
|||||
Consumer and other loans |
774 |
952 |
2,448 |
2,894 |
|||||
Investment securities and other interest-bearings deposits |
153 |
149 |
445 |
422 |
|||||
Total interest income |
2,277 |
2,677 |
7,169 |
8,226 |
|||||
Interest expense |
|||||||||
Deposits |
275 |
442 |
957 |
1,510 |
|||||
Borrowed funds |
2 |
19 |
25 |
60 |
|||||
Total interest expense |
277 |
461 |
982 |
1,570 |
|||||
Net interest income |
2,000 |
2,216 |
6,187 |
6,656 |
|||||
Provision for loan losses |
305 |
376 |
655 |
882 |
|||||
Net interest income after provision for loan losses |
1,695 |
1,840 |
5,532 |
5,774 |
|||||
Noninterest income |
|||||||||
Gain on sale of loans |
824 |
345 |
1,900 |
841 |
|||||
Loan servicing fees |
234 |
237 |
700 |
706 |
|||||
Insurance commissions |
187 |
185 |
535 |
486 |
|||||
Fees and service charges |
120 |
132 |
369 |
399 |
|||||
Other |
137 |
139 |
417 |
385 |
|||||
Total noninterest income |
1,502 |
1,038 |
3,921 |
2,817 |
|||||
Noninterest expense |
|||||||||
Compensation and benefits |
1,032 |
1,084 |
3,220 |
3,212 |
|||||
Occupancy and equipment |
207 |
195 |
633 |
633 |
|||||
Federal insurance premiums |
49 |
15 |
146 |
260 |
|||||
Data processing |
186 |
170 |
571 |
545 |
|||||
Advertising |
59 |
68 |
180 |
185 |
|||||
Amortization & Valuation adjustments for MSR's |
155 |
80 |
413 |
229 |
|||||
Other |
586 |
582 |
1,815 |
1,733 |
|||||
Total noninterest expense |
2,274 |
2,194 |
6,978 |
6,797 |
|||||
Income before income taxes |
923 |
684 |
2,475 |
1,794 |
|||||
Income tax expense |
371 |
257 |
997 |
695 |
|||||
Net Income |
$ 552 |
$ 427 |
$ 1,478 |
$ 1,099 |
|||||
Earnings per share |
|||||||||
Basic earnings per share |
$ 0.71 |
$ 0.54 |
$ 1.88 |
$ 1.40 |
|||||
Diluted earnings per share |
$ 0.71 |
$ 0.54 |
$ 1.88 |
$ 1.40 |
|||||
SOURCE Wells Financial Corp.
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