WEFP..$18.80..Earnings..
WEFP hits earnings out of the Park..
10/21/09 12:57 PM EDT Buy 388 WEFP Executed @ $18.8 Details | Edit
10/21/09 12:53 PM EDT Buy 288 WEFP Executed @ $18.8 Details | Edit
Total position is now 3028 and is my largest Small Bank position..hank
Wells Financial Corp. Announces Third Quarter Results and Cash Dividend
PR Newswire - Oct 21 at 12:39 NONE
Company Symbols: NASDAQ-OTCBB:WEFP
WELLS, Minn., Oct. 21 /PRNewswire-FirstCall/ --
Selected Financial Data
Quarter ended Nine months ended
September 30, September 30, September 30, September 30,
2009 2008 2009 2008
Net Income $428,000 $8,000 $1,670,000 $965,000
Basic earnings
per share $0.55 $0.01 $2.15 $1.00
Diluted earnings
per share $0.55 $0.01 $2.15 $1.00
Return on average
equity (1) 7.9% - 10.5% 5.1%
Return on average
assets (1) 0.7% - 0.9% 0.4%
Net interest
rate spread 3.4% 3.4% 3.3% 3.2%
Net interest
rate margin 3.5% 3.4% 3.4% 3.3%
Book value per
share $28.19 $26.18 $28.19 $26.18
(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 earnings for the third quarter of 2009 of $428,000, up $420,000 when compared to the third quarter of 2008. During the third quarter of 2008 the Company realized a other-than-temporary pre-tax impairment of $485,000 (approximately $316,000 post-tax) on Federal Home Loan Mortgage Corp. preferred stock which resulted in reduced income during that period. Basic and diluted earnings per share for the third quarter of 2009 were $0.55 compared to basic and diluted earnings per share of $0.01 for the third quarter of 2008.
Net income for the nine months ended September 30, 2009 was $1,670,000, up $705,000 when compared to the same period in 2008. Basic and diluted earnings per share were $2.15 for the first nine months of 2009 compared to basic and diluted earnings per share of $1.00 for the first nine months of 2008.
"I am extremely pleased with the performance of the Company and Bank during 2009," stated Trasamar. "During the past twelve months the profitability of the Company has increased the book value of the Company's stock by over $2.00 per share," he added.
Book value per share $28.19 Vrs. $26.18
Net interest income increased by $112,000 and $412,000, or 5.7% and 7.2%, for the three and nine month periods ended September 30, 2009, respectively, when compared to the same periods in 2008. The provision for loan loss decreased by $145,000 for the third quarter 2009 when compared to the third quarter 2008 and increased by $482,000 for the nine months ended September 30, 2009 when compared to the same period in 2008. In accordance with the Bank's internal classification of assets policy, management evaluates the loan portfolio on a monthly 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 of September 30, 2009 and December 31, 2008, the balance in the allowance for loan losses and the allowance for loan losses as a percentage of total loans were $1,806,000 and $1,096,000 and 0.90% and 0.50%, respectively.
When comparing the quarter and nine months ended September 30, 2009 to the same periods in 2008, noninterest income increased by $188,000 and $1,322,000, or 23.9% and 51.0%, respectively, due to an increase in the gain on sale of loans which resulted from increased residential loan refinance activity. Noninterest expense decreased by $221,000 and $190,000, or 8.8% and 2.8% for the quarter and nine months ended September 30, 2009, respectively, when compared to the same periods in 2008.
In the nine months ended September 30, 2009, total loans decreased by $19,497,000 due, primarily, to decreases in home equity line of credit loans and loans on agricultural real estate. Deposits increased by $14,907,000 during the first nine months of 2009. Partially offsetting the increase in deposits was a decrease of $13,250,000 in borrowed funds.
Cash Dividend Announcement
On October 20, 2009, the Company's Board of Directors declared a $0.26 per share cash dividend, payable on November 20, 2009 to shareholders of record on November 6, 2009.
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
09/30/09 12/31/08
-------- --------
Cash, including interest-bearing
accounts:
09/30/09 $25,430;
12/31/08 $2,689 $31,317 $8,744
Certificates of deposit 175 700
Securities available for sale 8,750 8,420
Federal Home Loan Stock 3,660 3,302
Loans held for sale 3,201 2,974
Loans receivable, net 197,719 217,425
Accrued interest receivable 1,803 1,813
Prepaid Income Taxes 71 -
Premises and equipment 3,762 3,961
Mortgage servicing rights, net 1,422 1,294
Other assets 5,739 4,420
----- -----
TOTAL ASSETS $257,619 $253,053
======== ========
LIABILITIES AND EQUITY
LIABILITIES:
Deposits $197,795 $182,888
Borrowed funds 33,556 46,806
Advances from borrowers for taxes
and insurance 3,249 2,081
Income taxes:
Deferred 49 205
Accrued interest payable 423 84
Accrued expenses and other liabilities 688 376
--- ---
TOTAL LIABILITIES 235,760 232,440
------- -------
STOCKHOLDERS' EQUITY:
Common stock, $.10 par value;
7,000.000 shares authorized;
2,187,500 shares issued $219 $219
Additional paid in capital 17,156 17,143
Retained earnings, substantially
restricted 32,378 31,312
Other comprehensive income 174 23
Treasury stock, at cost, 1,411,260
shares at September 30, 2009;
1,412,060 shares at December 31, 2008 (28,068) (28,084)
------ ------
TOTAL EQUITY 21,859 20,613
------ ------
TOTAL LIABILITIES AND EQUITY $257,619 $253,053
======== ========
WELLS FINANCIAL CORP. and SUBSIDIARY
Consolidated Statement of Income
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Nine Months
Ended Ended
September 30, September 30,
------------- -------------
2009 2008 2009 2008
---- ---- ---- ----
Interest and dividend income
Loans receivable:
Residential loans $653 $654 $2,074 $2,135
Commercial Loans 687 683 1,895 2,079
Ag Real Estate Loans 835 835 2,615 2,599
Consumer and other loans 1,160 1,261 3,584 3,815
Investment securities and
other interest-
bearings deposits 116 164 328 564
--- --- --- ---
Total interest income 3,451 3,597 10,496 11,192
----- ----- ------ ------
Interest expense
Deposits 992 1,219 3,051 3,996
Borrowed funds 387 418 1,289 1,452
--- --- ----- -----
Total interest expense 1,379 1,637 4,340 5,448
----- ----- ----- -----
Net interest income 2,072 1,960 6,156 5,744
----- ----- ----- -----
Provision for loan losses 75 220 835 353
-- --- --- ---
Net interest income after
provision for loan losses 1,997 1,740 5,321 5,391
----- ----- ----- -----
Noninterest income
Gain on sale of loans 357 136 2,083 681
Loan servicing fees 237 225 693 685
Insurance commissions 149 141 482 451
Fees and service charges 155 184 447 519
Other 78 102 214 261
-- --- --- ---
Total noninterest income 976 788 3,919 2,597
--- --- ----- -----
Noninterest expense
Compensation and benefits 1,032 1,008 3,134 3,102
Occupancy and equipment 238 262 764 893
Federal insurance premiums 73 9 129 20
Data processing 180 179 564 596
Advertising 77 63 180 176
Amortization & Valuation
adjustments for MSR's 111 140 372 417
Impairment of Securities
Available for Sale - 485 - 485
Other 576 362 1,404 1,048
--- --- ----- -----
Total noninterest expense 2,287 2,508 6,547 6,737
----- ----- ----- -----
Income before income taxes 686 20 2,693 1,251
Income tax expense 258 12 1,023 461
--- -- ----- ---
Net Income $428 $8 $1,670 $790
==== == ====== ====
Earnings per share
Basic earnings per share $0.55 $0.01 $2.15 $1.00
===== ===== ===== =====
Diluted earnings per share $0.55 $0.01 $2.15 $1.00
===== ===== ===== =====
SOURCE Wells Financial Corp.
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