WEFP.. $18.00.. Book value per share $ 28.42
Div.. $1.04 or 5.77%
Diluted earnings per share $ 0.57 vrs. $ 0.58,, $ 2.71 vrs. $ 1.58
Wells Financial Corp. Announces Annual Results and Cash Dividend
WELLS, Minn., Jan. 21 /PRNewswire-FirstCall/ --
Selected Financial Data
(Dollars in Thousands, except per share data)
(unaudited)
Quarter Ended Year Ended
December 31, December 31,
2009 2008 2009 2008
Net Income $ 440 $ 455 $ 2,110 $ 1,245
Basic earnings per share $ 0.57 $ 0.59 $ 2.72 $ 1.59
Diluted earnings per share $ 0.57 $ 0.58 $ 2.71 $ 1.58
Return on average equity (1) 8.02% 8.90% 9.85% 6.03%
Return on average assets (1) 0.68% 0.73% 0.81% 0.50%
Net interest rate spread 3.26% 3.47% 3.29% 3.25%
Net interest rate margin 3.32% 3.57% 3.36% 3.35%
Book value per share $ 28.42 $ 26.58 $ 28.42 $ 26.58
(1) Annualized
Lonnie R. Trasamar, President of Wells Financial Corp. (the Company) (OTC Bulletin Board: WEFP), the holding company of Wells Federal Bank (the Bank), announced annual earnings for 2009 of $2,110,000, up $865,000 or 69.5%, when compared to 2008. Basic and diluted earnings per share for 2009 were $2.72 and $2.71, respectively, up $1.13, when compared to 2008. The increase in net income for 2009 when compared to 2008 resulted, primarily, from an increase in the gain on sale of loans to the secondary market. During 2009 the Bank saw increased activity in the refinancing of loans sold to the secondary market due to a decrease in secondary market interest rates and programs introduced by the secondary market that streamlined the refinance process for the Bank's customers. Net income for the quarter ended December 31, 2009 was $440,000, down $15,000 or 3.3%, when compared to the same period in 2008. Basic and diluted earnings per share for the fourth quarter of 2009 were $0.57. Basic and diluted earnings per share for the fourth quarter of 2008 were $0.59 and $0.58, respectively.
When comparing December 31, 2009 to December 31, 2008, total assets increased by $12,168,000 due to a $32.3 million increase in cash. This increase in cash resulted from an increase in customer deposits of $26 million. Partially offsetting the increase in cash was a $22 million decrease in loans receivable. The decrease in loans receivable resulted, primarily, from decreases in loans for agricultural land and home equity line of credit loans. Liabilities increased by $10.7 million during 2009 due to the increase in deposits mentioned above being partially offset by a $15.4 million decrease in borrowed funds.
Cash Dividend Announcement
On January 19, 2010, the Company's Board of Directors declared a $0.26 per share cash dividend, payable on February 23, 2010 to shareholders of record on February 09, 2010. This is the seventeenth 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
12/31/09 12/31/08
Cash, including interest-bearing accounts: $ 41,013 $ 8,744
12/31/09 $34,777; 12/31/08 $2,689
Certificates of deposit 175 700
Securities available for sale 10,698 8,420
Federal Home Loan Stock 2,728 3,302
Loans held for sale 1,931 2,974
Loans receivable, net 195,423 217,425
Accrued interest receivable 1,564 1,813
Prepaid Income Taxes - -
Premises and equipment 3,693 3,961
Mortgage servicing rights, net 1,373 1,294
Other assets 6,623 4,420
TOTAL ASSETS $ 265,221 $ 253,053
LIABILITIES AND EQUITY
LIABILITIES:
Deposits $ 208,871 $ 182,888
Borrowed funds 31,435 46,806
Advances from borrowers for taxes and insurance 2,233 2,081
Income taxes:
Deferred 53 205
Accrued interest payable 61 84
Accrued expenses and other liabilities 505 376
TOTAL LIABILITIES 243,158 232,440
STOCKHOLDER'S EQUITY:
Common stock, $.10 par value; 7,000.000 shares
authorized; 2,187,500 shares issued $ 219 $ 219
Additional paid in capital 17,166 17,143
Retained earnings, substantially restricted 32,615 31,312
Other comprehensive income 131 23
Treasury stock, at cost, 1,411,260 shares at December
31, 2009; 1,412,060 shares at December 31, 2008 (28,068) (28,084)
TOTAL EQUITY 22,063 20,613
TOTAL LIABILITIES AND EQUITY $ 265,221 $ 253,053
Wells Financial Corp. and Subsidiary
Consolidated Statement of Income
(Dollars in thousands, except per share data)
(unaudited)
Three Months Twelve Months
Ended Ended
December 31, December 31,
2009 2008 2009 2008
Interest and dividend income
Loans receivable:
Residential loans $ 615 $ 683 $ 2,689 $ 2,818
Commercial Loans 583 638 2,478 2,717
Ag Real Estate Loans 783 909 3,398 3,508
Consumer and other loans 1,170 1,308 4,754 5,123
Investment securities and other interest-
bearings deposits 109 124 437 688
Total interest income 3,260 3,662 13,756 14,854
Interest expense
Deposits 949 1,144 4,000 5,140
Borrowed funds 302 418 1,591 1,870
Total interest expense 1,251 1,562 5,591 7,010
Net interest income 2,009 2,100 8,165 7,844
Provision for loan losses 145 150 980 503
Net interest income after
provision for loan losses 1,864 1,950 7,185 7,341
Noninterest income
Gain on sale of loans 282 172 2,365 853
Loan servicing fees 240 225 933 910
Insurance commissions 154 150 636 601
Fees and service charges 158 164 605 683
Other 249 73 463 334
Total noninterest income 1,083 784 5,002 3,381
Noninterest expense
Compensation and benefits 1,135 987 4,269 4,089
Occupancy and equipment 246 282 1,010 1,175
Federal insurance premiums 196 8 325 28
Data processing 174 184 738 780
Advertising 58 62 238 238
Amortization & Valuation adjustments for MSR's 89 135 461 552
Impairment of Securities Available for Sale - - - 485
Other 387 332 1,791 1,380
Total noninterest expense 2,285 1,990 8,832 8,727
Income before income taxes 662 744 3,355 1,995
Income tax expense 222 289 1,245 750
Net Income $ 440 $ 455 $ 2,110 $ 1,245
Earnings per share
Basic earnings per share $ 0.57 $ 0.59 $ 2.72 $ 1.59
Diluted earnings per share $ 0.57 $ 0.58 $ 2.71 $ 1.58
SOURCE Wells Financial Corp.
