Wells Financial Corp. Announces First Quarter Results
WELLS, Minn., April 16, 2014 /PRNewswire/ --
| Selected Financial Data |
||
| Quarter Ended March 31, |
||
| 2014 |
2013 |
|
| Net Income |
$ 251 |
$ 229 |
| Basic earnings per share |
$ 0.33 |
$ 0.30 |
| Diluted earnings per share |
$ 0.33 |
$ 0.30 |
| Return on average equity (1) |
3.8% |
3.5% |
| Return on average assets (1) |
0.4% |
0.4% |
| Net interest rate spread |
3.4% |
3.3% |
| Net interest rate margin |
3.4% |
3.4% |
| Book value per share |
$ 34.54 |
$ 34.09 |
| (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 first quarter of 2014 of $251,000, up $22,000 or 9.6% when compared to the first quarter of 2013. Basic and diluted earnings per share for the first quarter of 2014 were $0.33, up $0.03 or 10.0% when compared to the first quarter of 2013.
When comparing the first quarter of 2014 with the first quarter of 2013, net interest income increased by $33,000, or 1.7%. The provision for loan loss decreased by $205,000, or 54.7%. Noninterest income decreased by $308,000, or 25.5% during 2014 due, primarily, to a decrease in the gain on sale of loans. Fewer loans for sale to the secondary market were originated in 2014 when compared to 2013, due to changes in market rates. Noninterest expense decreased by $107,000, or 4.5%, during the first quarter of 2014 when compared to the same period in 2013.
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. As stated above, the provision for loan loss decreased by $205,000 for the first quarter of 2014 when compared to the same period in 2013. As of March 31, 2014 and 2013, the balance in the allowance for loan losses and the allowance for loan losses as a percentage of total loans were $1,826,000 and $1,878,000 and 1.1% and 1.2%, respectively.
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 |
||||
| 03/31/14 |
12/31/13 |
|||
| Cash, including interest-bearing accounts: |
$ 15,443 |
$ 12,625 |
||
| 03/31/14 $11,591; 12/31/13 $5,370 |
||||
| Certificates of deposit |
3,450 |
3,695 |
||
| Fed Funds Sold |
11,500 |
5,000 |
||
| Securities available for sale |
36,458 |
41,569 |
||
| Securities held to maturity |
- |
- |
||
| Federal Home Loan Bank Stock, at cost |
2,036 |
2,021 |
||
| Loans held for sale |
1,307 |
1,952 |
||
| Loans receivable, net |
163,924 |
165,401 |
||
| Accrued interest receivable |
724 |
804 |
||
| Prepaid income taxes |
234 |
- |
||
| Foreclosed real estate |
4,386 |
4,340 |
||
| Premises and equipment |
2,995 |
3,040 |
||
| Mortgage servicing rights, net |
1,934 |
1,952 |
||
| Other assets |
939 |
1,402 |
||
| TOTAL ASSETS |
$ 245,330 |
$ 243,801 |
||
| LIABILITIES AND EQUITY |
||||
| LIABILITIES: |
||||
| Deposits |
$ 214,164 |
$ 214,370 |
||
| Borrowed funds |
- |
- |
||
| Advances from borrowers for taxes and insurance |
3,924 |
2,614 |
||
| Income taxes: |
||||
| Deferred |
- |
- |
||
| Accrued interest payable |
54 |
6 |
||
| Accrued expenses and other liabilities |
883 |
728 |
||
| TOTAL LIABILITIES |
219,025 |
217,718 |
||
| STOCKHOLDER'S EQUITY: |
||||
| Common stock, $.10 par value; 7,000.000 shares |
||||
| authorized; 2,187,500 shares issued |
$ 219 |
$ 219 |
||
| Additional paid in capital |
17,094 |
17,086 |
||
| Retained earnings, substantially restricted |
37,372 |
37,235 |
||
| Other comprehensive income |
(10) |
(264) |
||
| Treasury stock, at cost, 1,425,885 shares at March |
||||
| 31, 2014; 1,418,180 shares at December 31, 2013 |
(28,370) |
(28,193) |
||
| TOTAL EQUITY |
26,305 |
26,083 |
||
| TOTAL LIABILITIES AND EQUITY |
$ 245,330 |
$ 243,801 |
||
| Wells Financial Corp. and Subsidiary |
||||
| Consolidated Statement of Income |
||||
| (Dollars in thousands, except per share data) |
||||
| (Unaudited) |
||||
| Three Months Ended |
||||
| March 31, |
||||
| 2014 |
2013 |
|||
| Interest and dividend income |
||||
| Loans receivable: |
||||
| Residential loans |
$ 653 |
$ 631 |
||
| Commercial Loans |
307 |
313 |
||
| Ag Real Estate Loans |
331 |
338 |
||
| Consumer and other loans |
626 |
689 |
||
| Investment securities and other interest- |
||||
| bearings deposits |
194 |
168 |
||
| Total interest income |
2,111 |
2,139 |
||
| Interest expense |
||||
| Deposits |
160 |
220 |
||
| Borrowed funds |
- |
1 |
||
| Total interest expense |
160 |
221 |
||
| Net interest income |
1,951 |
1,918 |
||
| Provision for loan losses |
170 |
375 |
||
| Net interest income after |
||||
| provision for loan losses |
1,781 |
1,543 |
||
| Noninterest income |
||||
| Gain on sale of loans |
176 |
536 |
||
| Loan servicing fees |
225 |
234 |
||
| Insurance commissions |
141 |
209 |
||
| Fees and service charges |
105 |
111 |
||
| Other |
252 |
117 |
||
| Total noninterest income |
899 |
1,207 |
||
| Noninterest expense |
||||
| Compensation and benefits |
1,179 |
1,063 |
||
| Occupancy and equipment |
208 |
219 |
||
| Federal insurance premiums |
54 |
49 |
||
| Data processing |
215 |
210 |
||
| Advertising |
48 |
59 |
||
| Amortization & Valuation adjustments for MSR's |
71 |
118 |
||
| Other |
486 |
650 |
||
| Total noninterest expense |
2,261 |
2,368 |
||
| Income before income taxes |
419 |
382 |
||
| Income tax expense |
168 |
153 |
||
| Net Income |
$ 251 |
$ 229 |
||
| Earnings per share |
||||
| Basic earnings per share |
$ 0.33 |
$ 0.30 |
||
| Diluted earnings per share |
$ 0.33 |
$ 0.30 |
||
SOURCE Wells Financial Corp.
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