Wells Financial Corp. Restates Fourth Quarter and Annual Earnings
WELLS, Minn., March 11, 2011 /PRNewswire/ -- Lonnie R. Trasamar, President and CEO of Wells Financial Corp. (OTC Bulletin Board: WEFP) and its subsidiary, Wells Federal Bank, announced today revised earnings for the quarter and year ended December 31, 2010. After careful review of expected future cash flows on selected loans and repossessed properties the Company felt it was prudent to record additional provisions on those assets. Revised earnings for the fourth quarter of 2010 and the year ended December 31, 2010 are $402,000 and $1,815,000, respectively, down $209,000 when compared to net income previously reported. Please see the Consolidated Statement of Condition and Consolidated Statement of Income attached to this press release.
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 Statements of Financial Condition | |||
December 31, 2010 and 2009 | |||
(dollars in thousands, except per share data) | |||
Assets | 2010 | 2009 | |
Cash and cash equivalents, including interest-bearing accounts | |||
2010 $2,468; 2009 $5,772 | $ 8,244 | $ 12,008 | |
Certificates of deposit, at cost | - | 175 | |
Federal funds sold | 12,542 | 29,005 | |
Securities available for sale | 14,624 | 10,698 | |
Federal Home Loan Bank Stock, at cost | 1,859 | 2,728 | |
Loans held for sale | 2,217 | 1,931 | |
Loans receivable, net of allowance for loan losses of $2,136 | |||
in 2010; $1,525 in 2009 | 185,418 | 195,423 | |
Accrued interest receivable | 1,366 | 1,564 | |
Premises and equipment | 3,439 | 3,693 | |
Mortgage servicing rights, net | 1,687 | 1,373 | |
Foreclosed real estate | 5,628 | 5,062 | |
Other assets | 1,383 | 1,561 | |
Total assets | $ 238,407 | $ 265,221 | |
Liabilities and Stockholders' Equity | |||
Liabilities | |||
Deposits | $ 210,819 | $ 208,870 | |
Borrowed funds | 1,785 | 31,435 | |
Advances from borrowers for taxes and insurance | 2,300 | 2,233 | |
Deferred income taxes | - | 157 | |
Accrued interest payable | 53 | 61 | |
Accrued expenses and other liabilities | 223 | 402 | |
Total liabilities | 215,180 | 243,158 | |
Stockholders' Equity | |||
Preferred stock, no par value; 500,000 shares authorized; | |||
none outstanding | - | - | |
Common stock, $.10 par value; 7,000,000 shares | |||
authorized; 2,187,500 shares issued | 219 | 219 | |
Additional paid-in capital | 17,104 | 17,166 | |
Retained earnings, substantially restricted | 33,615 | 32,615 | |
Accumulated other comprehensive income | 147 | 131 | |
Less cost of treasury stock, 2010 1,400,705 shares; | |||
2009 1,411,260 shares | (27,858) | (28,068) | |
Total stockholders' equity | 23,227 | 22,063 | |
Total liabilities and stockholders' equity | $ 238,407 | $ 265,221 | |
Wells Financial Corp. and Subsidiary | ||||||
Consolidated Statements of Income | ||||||
(dollars in thousands, except per share data) | ||||||
Quarter Ended December 31, | Year Ended December 31, | |||||
2010 | 2009 | 2010 | 2009 | |||
Interest Income | ||||||
Loans receivable | $ 2,960 | $ 3,151 | $ 12,036 | $ 13,319 | ||
Investment securities and interest-bearing deposits | 127 | 109 | 561 | 437 | ||
Total interest income | 3,087 | 3,260 | 12,597 | 13,756 | ||
Interest Expense | ||||||
Deposits | 647 | 949 | 3,030 | 4,000 | ||
Borrowed funds | 32 | 302 | 679 | 1,591 | ||
Total interest expense | 679 | 1,251 | 3,709 | 5,591 | ||
Net interest income | 2,408 | 2,009 | 8,888 | 8,165 | ||
Provision for loan losses | 473 | 145 | 978 | 980 | ||
Net interest income after provision for loan losses | 1,935 | 1,864 | 7,910 | 7,185 | ||
Noninterest Income | ||||||
Gain on sale of loans originated for sale | 783 | 282 | 1,849 | 2,365 | ||
Loan servicing fees | 240 | 240 | 954 | 933 | ||
Insurance commissions | 162 | 154 | 679 | 636 | ||
Fees and service charges | 141 | 158 | 550 | 605 | ||
Other | 106 | 249 | 464 | 282 | ||
Total noninterest income | 1,432 | 1,083 | 4,496 | 4,821 | ||
Noninterest Expenses | ||||||
Compensation and benefits | 1,147 | 1,135 | 4,305 | 4,269 | ||
Occupancy | 267 | 246 | 1,006 | 1,010 | ||
Data processing | 187 | 174 | 738 | 738 | ||
Advertising | 68 | 58 | 245 | 238 | ||
Amortization of mortgage servicing rights | 71 | 89 | 309 | 461 | ||
Impairment of securities available for sale | - | - | - | - | ||
Other | 1,035 | 387 | 2,919 | 1,935 | ||
Total noninterest expenses | 2,775 | 2,285 | 9,522 | 8,651 | ||
Income before income taxes | 592 | 222 | 2,884 | 3,355 | ||
Income tax expense | 190 | 222 | 1,069 | 1,245 | ||
Net income | $ 402 | $ 440 | $ 1,815 | $ 2,110 | ||
Earnings per share | ||||||
Basic | $ 0.51 | $ 0.57 | $ 2.32 | $ 2.72 | ||
Diluted | $ 0.51 | $ 0.57 | $ 2.31 | $ 2.71 | ||
SOURCE Wells Financial Corp.
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