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07.02.2017 18:00:00
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Wells Financial Corp. Announces Fourth Quarter and Annual Results of Operations
WELLS, Minn., Feb. 7, 2017 /PRNewswire/ --
Selected Financial Data (Dollars in thousands, except per share data) (Unaudited) | ||||
Quarter Ended | Year Ended December 31, | |||
2016 | 2015 | 2016 | 2015 | |
Net Income | $ 523 | $ 431 | $ 2,387 | $ 4,894 |
Basic earnings per share | $ 0.67 | $ 0.54 | $ 3.04 | $ 6.35 |
Diluted earnings per share | $ 0.67 | $ 0.54 | $ 3.04 | $ 6.35 |
Return on average equity (1) | 6.5% | 5.5% | 7.5% | 17.0% |
Return on average assets (1) | 0.8% | 0.6% | 0.9% | 1.9% |
Net interest rate spread | 3.7% | 3.7% | 3.7% | 3.7% |
Net interest rate margin | 3.7% | 3.7% | 3.7% | 3.7% |
Book value per share | $ 41.19 | $ 38.99 | $ 41.19 | $ 38.99 |
Tangible book value per share | $ 40.95 | $ 38.63 | $ 40.95 | $ 38.63 |
(1) Annualized | ||||
Quarter Ended December 31, 2016
James D. Moll, President of Wells Financial Corp. (OTC BB:WEFP) (the Company), the holding company of Wells Federal Bank (the Bank), announced net income for the fourth quarter of 2016 of $523,000 and basic and diluted earnings per share of $0.67. This compares to net income of $431,000 and basic and diluted earnings per share of $0.54 for the fourth quarter of 2015. The improvement in net income for the quarter is due, primarily, to decreases in noninterest expense of $117,000 or 4.5%. The decrease in noninterest expense was due, primarily, to decreases in compensation and benefits and occupancy costs.
Net interest income decreased $37,000 or 1.5% and noninterest income decreased $13,000 or 1.4% for the quarter, when compared to the fourth quarter of 2015. Provision for loan losses decreased $70,000 or 100% for the same time period which offset the decreases in net interest income and noninterest income.
Year Ended December 31, 2016
Net income for the year ended December 31, 2016 was $2,387,000. Basic and diluted earnings per share were $3.04. This compares with net income for 2015 of $4,894,000. The decrease in earnings for 2016 was due to the Company realizing a $2,848,000 bargain purchase gain during the third quarter of 2015 which resulted from the acquisition of St. James Federal Savings and Loan Association. When comparing net income on core earnings (excluding the bargain purchase gain realized in 2015), net income for 2016 increased by $341,000 when compared to 2015. Net interest income increased by $426,000, or 4.7%. Noninterest income remained relatively consistent if the bargain purchase gain realized in 2015 is eliminated. Noninterest expense also remained relatively consistent when compared to the same period in 2015. Increased costs caused by the increase in number of branches were offset by reductions in expenses elsewhere in the Company.
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 losses through the provision for loan losses. As of December 31, 2016 and December 31, 2015, the balance in the allowance for loan losses and the allowance for loan losses as a percentage of total loans were $1,907,000 and $1,988,000 and 1.0% and 1.0%, 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 Balance Sheets | ||||
(Dollars in thousands) | ||||
(Unaudited) | ||||
Assets | ||||
12/31/16 | 12/31/15 | |||
Cash and cash equivalents, including interest-bearing | $ 5,777 | $ 12,059 | ||
Certificates of deposit, at cost | 13,582 | 9,543 | ||
Federal funds sold | 5,900 | 9,100 | ||
Securities available for sale | 33,632 | 34,450 | ||
Federal Home Loan stock, at cost | 1,858 | 1,986 | ||
Loans held for sale | 1,338 | 1,337 | ||
Loans receivable, net | 197,086 | 197,595 | ||
Accrued interest receivable | 1,071 | 1,020 | ||
Premises and equipment, net | 3,749 | 3,368 | ||
Mortgage servicing rights, net | 1,787 | 1,863 | ||
Foreclosed real estate | 1,709 | 1,632 | ||
Core deposits intangible | 180 | 285 | ||
Other assets | 806 | 541 | ||
Total assets | $ 268,475 | $ 274,779 | ||
Liabilities and Stockholders' Equity | ||||
Liabilities: | ||||
Deposits | $ 233,010 | $ 239,950 | ||
Advances from borrowers for taxes and insurance | 2,749 | 2,646 | ||
Accrued interest payable | 21 | 12 | ||
Accrued expenses and other liabilities | 620 | 871 | ||
Total liabilities | 236,400 | 243,479 | ||
Stockholders' Equity: | ||||
Preferred stock, no par value; 500,000 share authorized; none | ||||
outstanding | - | - | ||
Common stock, $.10 par value; 7,000.000 shares | ||||
authorized; 2,140,379 shares issued | $ 214 | $ 217 | ||
Additional paid in capital | 18,121 | 18,123 | ||
Retained earnings, substantially restricted | 44,024 | 42,423 | ||
Other comprehensive income | (5) | 66 | ||
Unallocated employee stock ownership plan shares | (82) | (146) | ||
Treasury stock, at cost, 1,361,591 shares at December | ||||
31, 2016; 1,337,531 shares at December 31, 2015 | (30,197) | (29,383) | ||
Total stockholders' equity | 32,075 | 31,300 | ||
Total liabilities and stockholders' equity | $ 268,475 | $ 274,779 | ||
Wells Financial Corp. and Subsidiary | |||||||||
Consolidated Statements of Income | |||||||||
(Dollars in thousands, except per share data) | |||||||||
(Unaudited) | |||||||||
Three Months Ended | Years Ended | ||||||||
December 31, | December 31, | ||||||||
2016 | 2015 | 2016 | 2015 | ||||||
Interest and dividend income: | |||||||||
Loans receivable | $ 2,241 | $ 2,306 | $ 9,023 | $ 8,836 | |||||
Investment securities and other interest- | |||||||||
bearings deposits | 218 | 204 | 856 | 712 | |||||
Total interest income | 2,459 | 2,510 | 9,879 | 9,548 | |||||
Interest expense: | |||||||||
Deposits | 86 | 100 | 355 | 450 | |||||
Total interest expense | 86 | 100 | 355 | 450 | |||||
Net interest income | 2,373 | 2,410 | 9,524 | 9,098 | |||||
Provision for loan losses | - | 70 | 40 | 70 | |||||
Net interest income after | |||||||||
provision for loan losses | 2,373 | 2,340 | 9,484 | 9,028 | |||||
Noninterest income: | |||||||||
Gain on sale of loans | 269 | 242 | 1,111 | 1,068 | |||||
Loan servicing fees | 195 | 208 | 802 | 848 | |||||
Insurance commissions | 228 | 156 | 1,003 | 685 | |||||
Fees and service charges | 113 | 120 | 451 | 462 | |||||
Bargain purchase gain | - | - | - | 2,848 | |||||
Other | 143 | 235 | 561 | 885 | |||||
Total noninterest income | 948 | 961 | 3,928 | 6,796 | |||||
Noninterest expenses: | |||||||||
Compensation and benefits | 1,276 | 1,345 | 5,104 | 4,770 | |||||
Occupancy | 169 | 204 | 762 | 757 | |||||
Data processing | 276 | 267 | 1,027 | 965 | |||||
Advertising | 81 | 93 | 285 | 287 | |||||
Amortization of mortgage servicing rights | 91 | 76 | 355 | 351 | |||||
Amortization of Intangible Assets | 21 | 28 | 105 | 92 | |||||
Other real estate owned | 19 | 52 | 71 | 481 | |||||
Other | 571 | 556 | 1,995 | 1,983 | |||||
Total noninterest expenses | 2,504 | 2,621 | 9,704 | 9,686 | |||||
Income before income taxes | 817 | 680 | 3,708 | 6,138 | |||||
Income tax expense | 294 | 249 | 1,321 | 1,244 | |||||
Net Income | $ 523 | $ 431 | $ 2,387 | $ 4,894 | |||||
Earnings per share | |||||||||
Basic earnings per share | $ 0.67 | $ 0.54 | $ 3.04 | $ 6.35 | |||||
Diluted earnings per share | $ 0.67 | $ 0.54 | $ 3.04 | $ 6.35 | |||||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/wells-financial-corp-announces-fourth-quarter-and-annual-results-of-operations-300403454.html
SOURCE Wells Financial Corp.
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