Click here to close now.

SYS-CON MEDIA Authors: Harry Trott, Liz McMillan, Pat Romanski, Carmen Gonzalez, Blue Box Blog

News Feed Item

Wells Financial Corp. Announces Fourth Quarter, Annual Results and Cash Dividend

WELLS, Minn., Feb. 21, 2014 /PRNewswire/ --

 

Selected Financial Data
(Dollars in Thousands, except per share data)
(unaudited)





Quarter Ended Dec. 31,

Year Ended Dec. 31


2013

2012

2013

2012






Net Income

$      101

$114

$       1,186

$      1,592

Basic earnings per share

$     0.13

$     0.15

$1.54

$2.03

Diluted earnings per share

$     0.13

$     0.15

$1.54

$2.03

Return on average equity (1)

1.5%

1.8%

4.5%

6.2%

Return on average assets (1)

0.2%

0.2%

0.6%

0.7%

Net interest rate spread

3.4%

3.5%

3.3%

3.7%

Net interest rate margin

3.4%

3.5%

3.3%

3.7%

Book value per share

$   33.90

$   33.87

$       33.90

$   33.87

(1) Annualized





Quarter Ended December 31, 2013

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 fourth quarter of 2013 of $101,000, down $13,000 or 11.4% when compared to the fourth quarter of 2012.  Basic and diluted earnings per share for the fourth quarter of 2013 were $0.13, down $0.02 or 13.3% when compared to the fourth quarter of 2012.

When comparing the fourth quarter of 2013 with the fourth quarter of 2012, the decrease in net income was due, primarily, to a decrease of $470,000 in gain on sale of loans.  The decrease in the gain on sale of loans resulted from a lesser amount of loans being originated for sale to the secondary market.  Beginning late in the second quarter the rates on residential mortgage loans increased resulting in fewer residential loans being refinanced.  Offsetting the decrease in gain on sale of loans was a decrease in noninterest expense.

Year Ended December 31, 2013

Net income decreased by $406,000, or 25.5% for 2013 when compared to 2012.  During 2013 the Company saw decreased activity in the refinancing of residential loans sold to the secondary market due to higher market interest rates.  This resulted in a decrease of $1,081,000 during 2013 in the gain on sale of loans originated for sale when compared to 2012.  Partially offsetting the decrease in the gain on sale of loans originated for sale was a $734,000, or 7.4%, decrease in noninterest expense. 

Net interest income decreased by $475,000, or 5.8% for the year ended December 31, 2013 when compared to the year ended December 31, 2012.  During 2013 the yield on the Company's loan and security portfolios decreased more than the cost of the Company's deposits resulting in a decrease in net interest income.

The provision for loan loss decreased by $200,000, or 23.8%, for 2013 when compared to 2012.  The provision reflects management's monitoring of the allowance for loan losses in relation to the size and quality of the loan portfolio and 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.

Noninterest income decreased by $1,136,000, or 21.5%, for 2013 when compared to 2012 primarily due to a decrease in the gain on sale of loans originated for sale described above.  During 2013 the Company saw decreased activity in the refinancing of loans sold to the secondary market due to increasing market rate conditions.

Noninterest expense decreased by $734,000, or 7.4%, for 2013 when compared to 2012 due, primarily, to a decrease of $630,000, in other real estate owned expense. The decrease in other real estate owned expense was due, primarily, to decreased write downs of repossessed property.    

Cash Dividend

On February 20, 2014, the Board of Directors declared a quarterly cash dividend of $0.15 per share, payable on March 28, 2014 to shareholders of record on March 14, 2014.

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







12/31/13


12/31/12






Cash, including interest-bearing accounts:


$      12,625


$      13,000

    12/31/13 $5,370; 12/31/12 $4,543





Certificates of deposit


3,695


9,631

Fed Funds Sold


5,000


21,000

Securities available for sale


41,569


23,068

Federal Home Loan Stock


2,021


2,188

Loans held for sale


1,952


6,911

Loans receivable, net


165,401


157,901

Accrued interest receivable


804


826

Prepaid Income Taxes


402


151

Foreclosed real estate


4,340


3,601

Premises and equipment


3,040


3,192

Mortgage servicing rights, net


1,952


1,940

Other assets


1,000


938

              TOTAL ASSETS


$    243,801


$    244,347











LIABILITIES AND EQUITY










LIABILITIES:





    Deposits


$    214,370


$    214,928

    Borrowed funds


-


150

    Advances from borrowers for taxes and insurance


2,614


2,494

    Accrued interest payable


6


8

    Accrued expenses and other liabilities


728


610

          TOTAL LIABILITIES


217,718


218,190






STOCKHOLDER'S EQUITY:





    Common stock, $.10 par value; 7,000.000 shares authorized; 2,187,500 shares issued


$           219


$           219

    Additional paid in capital


17,086


17,137

    Retained earnings, substantially restricted


37,235


36,510

    Other comprehensive income


(264)


420

    Treasury stock, at cost, 1,418,180 shares at December 31, 2013; 1,415,307 shares at December 31, 2012


(28,193)


(28,129)

          TOTAL EQUITY


26,083


26,157






               TOTAL LIABILITIES AND EQUITY


$    243,801


$    244,347

 

 

Wells Financial Corp. and Subsidiary
Consolidated Statement of Income
(Dollars in thousands, except per share data)
(Unaudited)









Three Months Ended



Twelve Months Ended



December 31,



December 31,



2013


2012



2013


2012

Interest and dividend income










  Loans receivable:










    Residential loans


$      653


$     655



$   2,561


$     2,739

    Commercial Loans


319


318



1,239


1,366

    Ag Real Estate Loans


310


347



1,251


1,491

    Consumer and other loans


653


747



2,654


3,195

  Investment securities and other interest-bearings deposits


214


154



770


599

               Total interest income


2,149


2,221



8,475


9,390

Interest expense










  Deposits


179


255



797


1,212

  Borrowed funds


-


1



1


26

               Total interest expense


179


256



798


1,238

               Net interest income


1,970


1,965



7,677


8,152

Provision for loan losses


225


185



640


840

               Net interest income after provision for loan losses


1,745


1,780



7,037


7,312

Noninterest income










  Gain on sale of loans


253


723



1,542


2,623

  Gain on sale of securities AFS


-


-



4


-

  Loan servicing fees


230


236



923


936

  Insurance commissions


117


173



659


708

  Fees and service charges


120


129



454


498

  Other


150


105



569


522

               Total noninterest income


870


1,366



4,151


5,287

Noninterest expense










  Compensation and benefits


1,075


1,151



4,218


4,371

  Occupancy and equipment


203


224



868


857

  Federal insurance premiums


54


58



161


204

  Data processing


210


190



812


761

  Advertising


66


84



250


264

  Amortization & Valuation adjustments for MSR's


86


145



430


558

  Other real estate owned


167


737



730


1,360

  Other


616


383



1,746


1,575

               Total noninterest expense


2,477


2,972



9,216


9,950

               Income before income taxes


138


174



1,972


2,649

Income tax expense


37


60



786


1,057

               Net Income


$      101


$     114



$   1,186


$     1,592

Earnings per share










    Basic earnings per share


$     0.13


$    0.15



$    1.54


$      2.03

    Diluted earnings per share


$     0.13


$    0.15



$    1.54


$      2.03

SOURCE Wells Financial Corp.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
It's time to put the "Thing" back in IoT. Whether it’s drones, robots, self-driving cars, ... There are multiple incredible examples of the power of IoT nowadays that are shadowed by announcements of yet another twist on statistics, databases, .... Sorry, I meant, Big Data(TM), tiered storage(TM), complex systems(TM), smart nations(TM), .... In his session at WebRTC Summit, Dr Alex Gouaillard, CTO and Co-Founder of Temasys, will discuss the concrete, cool, examples of IoT already happening tod...
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover ...
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Ras...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using ...
The cloud has transformed how we think about software quality. Instead of preventing failures, we must focus on automatic recovery from failure. In other words, resilience trumps traditional quality measures. Continuous delivery models further squeeze traditional notions of quality. Remember the venerable project management Iron Triangle? Among time, scope, and cost, you can only fix two or quality will suffer. Only in today's DevOps world, continuous testing, integration, and deployment upend...
Avnet, Inc. has announced that it ranked No. 4 on the InformationWeek Elite 100 – a list of the top business technology innovators in the U.S. Avnet was recognized for the development of an innovative cloud-based training system that serves as the foundation for Avnet Academy – the company’s education and training organization focused on technical training around top IT vendor technologies. The development of this system allowed Avnet to quickly expand its IT-related training capabilities around...
The WebRTC Summit 2015 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.
Cloud and Big Data present unique dilemmas: embracing the benefits of these new technologies while maintaining the security of your organization's assets. When an outside party owns, controls and manages your infrastructure and computational resources, how can you be assured that sensitive data remains private and secure? How do you best protect data in mixed use cloud and big data infrastructure sets? Can you still satisfy the full range of reporting, compliance and regulatory requirements? In...
Chuck Piluso will present a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Speaker Bio: Prior to Data Storage Corporation (DSC), Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of ...
There are lots of challenges in IoT around secure, scalable and business friendly infrastructure for enterprises. For large corporations, IoT implementations are one of the top priorities of the decade. All industries are seeing a competitive need to sustain by investing in IoT initiatives. The value addition comes from improved customer service, innovative product and additional revenue streams. The data from these IP-connected devices can be leveraged for a variety of business applica...
Between the compelling mockups and specs produced by your analysts and designers, and the resulting application built by your developers, there is a gulf where projects fail, costs spiral out of control, and applications fall short of requirements. In his session at DevOps Summit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, will present a new approach where business and development users collaborate – each using tools appropriate to their goals and expertise – to build mo...
To manage complex web services with lots of calls to the cloud, many businesses have invested in Application Performance Management (APM) and Network Performance Management (NPM) tools. Together APM and NPM tools are essential aids in improving a business's infrastructure required to support an effective web experience... but they are missing a critical component - Internet visibility. Internet connectivity has always played a role in customer access to web presence, but in the past few years u...
Working with Big Data is challenging, especially when decision makers depend on market insights and intelligence from your data but don't have quick access to it or find it unusable. In their session at 6th Big Data Expo, Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia; Zel Bianco, President, CEO and Co-Founder of Interactive Edge of Solgenia; and Ermanno Bonifazi, CEO & Founder at Solgenia, discussed how a revolutionary cloud-based BI along with mobile analytics is already c...
Recent technology advances in miniaturization has positioned the wearables as the pinnacle of technology convergence with the human body. We inquire if wearables are mere standard miniaturized devices extended with the connectivity and present our views on considerations like design, applications, performance, efficiency, interoperability, usage scenarios, human device interaction and consequent trade-offs enabling wearables to impart optimal value.