Wells Financial Corp. Announces First Quarter Results and Cash Dividend
WELLS, Minn., April 22 /PRNewswire-FirstCall/ --
Selected Financial Data (Dollars in Thousands, except per share data) (unaudited) |
|||
Quarter Ended March 31, |
|||
2010 |
2009 |
||
Net Income |
$ 351 |
$ 645 |
|
Basic earnings per share |
$ 0.45 |
$ 0.83 |
|
Diluted earnings per share |
$ 0.45 |
$ 0.83 |
|
Return on average equity (1) |
6.33% |
12.40% |
|
Return on average assets (1) |
0.54% |
0.99% |
|
Net interest rate spread |
3.32% |
3.40% |
|
Net interest rate margin |
3.38% |
3.47% |
|
Book value per share |
$ 28.52 |
$ 27.23 |
|
(1) Annualized |
|||
Lonnie R. Trasamar, President of Wells Financial Corp. (OTC Bulletin Board: WEFP) (the Company), the holding company of Wells Federal Bank (the Bank), announced first quarter earnings for 2010 of $351,000, down $294,000 or 45.6%, when compared to the first quarter of 2009. Basic and diluted earnings per share for the quarter were $0.45, down $0.38, when compared to the first quarter of 2009. The decrease in net income resulted from a decrease of $660,000 in the gain on sale of loans to the secondary market. During the first quarter of 2009 the Bank saw increased activity in the refinancing of loans sold to the secondary market when compared to the first quarter of 2010 due to programs introduced by the secondary market that streamlined the refinance process for the Bank's customers. While these programs are still available a large number of the Bank's customers elected to refinance their loans during 2009.
When comparing the first quarter of 2010 with the same period in 2009 the provision for loan loss decreased by $260,000. The provision reflects management's monitoring of the allowance for loan losses in relation to the size and quality of the loan portfolio. Management adjusts the provision for loan losses to adequately provide for loan losses. Due to changes in economic conditions and changes in the composition of the loan portfolio, it is possible that the provision for loan losses will increase in future periods.
When comparing March 31, 2010 to December 31, 2009, total assets decreased by $3,015,000 due, primarily, to a decrease in loans receivable. Liabilities decreased by $3.3 million during the first quarter of 2010 due to a decrease in borrowed funds.
Cash Dividend Announcement
On April 20, 2010, the Company's Board of Directors declared a $0.26 per share cash dividend, payable on May 21, 2010 to shareholders of record on May 7, 2010. This is the eighteenth 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) |
|||||
ASSETS |
|||||
03/31/10 |
12/31/09 |
||||
Cash, including interest-bearing accounts: |
$ 28,666 |
$ 41,013 |
|||
03/31/10 $24,468; 12/31/09 $34,777 |
|||||
Certificates of deposit |
11,131 |
175 |
|||
Securities available for sale |
13,045 |
10,698 |
|||
Federal Home Loan Bank Stock, at cost |
2,491 |
2,728 |
|||
Loans held for sale |
958 |
1,931 |
|||
Loans receivable, net |
192,041 |
195,423 |
|||
Accrued interest receivable |
1,511 |
1,564 |
|||
Premises and equipment |
3,614 |
3,693 |
|||
Mortgage servicing rights, net |
1,304 |
1,373 |
|||
Other assets |
7,445 |
6,623 |
|||
TOTAL ASSETS |
$ 262,206 |
$ 265,221 |
|||
LIABILITIES AND EQUITY |
|||||
LIABILITIES: |
|||||
Deposits |
$ 209,360 |
$ 208,870 |
|||
Borrowed funds |
26,185 |
31,435 |
|||
Advances from borrowers for taxes and insurance |
3,460 |
2,233 |
|||
Income taxes: |
|||||
Deferred |
83 |
157 |
|||
Accrued interest payable |
176 |
61 |
|||
Accrued expenses and other liabilities |
614 |
402 |
|||
TOTAL LIABILITIES |
239,878 |
243,158 |
|||
STOCKHOLDER'S EQUITY: |
|||||
Common stock, $.10 par value; 7,000.000 shares |
|||||
authorized; 2,187,500 shares issued |
$ 219 |
$ 219 |
|||
Additional paid in capital |
17,127 |
17,166 |
|||
Retained earnings, substantially restricted |
32,763 |
32,615 |
|||
Other comprehensive income |
156 |
131 |
|||
Treasury stock, at cost, 1,404,699 shares at March |
|||||
31, 2010;1,411,260 shares at December 31,2009 |
(27,937) |
(28,068) |
|||
TOTAL EQUITY |
22,328 |
22,063 |
|||
TOTAL LIABILITIES AND EQUITY |
$ 262,206 |
$ 265,221 |
|||
WELLS FINANCIAL CORP. and SUBSIDIARY |
|||||
Consolidated Statement of Income |
|||||
(Dollars in Thousands, except per share data) |
|||||
(Unaudited) |
|||||
Three Months Ended |
|||||
March 31, |
|||||
2010 |
2009 |
||||
Interest and dividend income |
|||||
Loans receivable: |
|||||
Residential loans |
$ 601 |
$ 717 |
|||
Commercial Loans |
591 |
630 |
|||
Ag Real Estate Loans |
749 |
898 |
|||
Consumer and other loans |
1,117 |
1,241 |
|||
Investment securities and other interest- |
|||||
bearings deposits |
141 |
105 |
|||
Total interest income |
3,199 |
3,591 |
|||
Interest expense |
|||||
Deposits |
872 |
1,054 |
|||
Borrowed funds |
262 |
424 |
|||
Total interest expense |
1,134 |
1,478 |
|||
Net interest income |
2,065 |
2,113 |
|||
Provision for loan losses |
125 |
385 |
|||
Net interest income after |
|||||
provision for loan losses |
1,940 |
1,728 |
|||
Noninterest income |
|||||
Gain on sale of loans |
134 |
794 |
|||
Loan servicing fees |
239 |
225 |
|||
Insurance commissions |
204 |
186 |
|||
Fees and service charges |
132 |
149 |
|||
Other |
78 |
68 |
|||
Total noninterest income |
787 |
1,422 |
|||
Noninterest expense |
|||||
Compensation and benefits |
1,038 |
1,074 |
|||
Occupancy and equipment |
250 |
261 |
|||
Federal insurance premiums |
110 |
18 |
|||
Data processing |
187 |
200 |
|||
Advertising |
56 |
54 |
|||
Amortization & Valuation adjustments for MSR's |
86 |
146 |
|||
Other |
430 |
375 |
|||
Total noninterest expense |
2,157 |
2,128 |
|||
Income before income taxes |
570 |
1,022 |
|||
Income tax expense |
219 |
377 |
|||
Net Income |
$ 351 |
$ 645 |
|||
Earnings per share |
|||||
Basic earnings per share |
$ 0.45 |
$ 0.83 |
|||
Diluted earnings per share |
$ 0.45 |
$ 0.83 |
|||
SOURCE Wells Financial Corp.
Share this article