EX-99 3 ex-99.txt PRESS RELEASE For Immediate Release Contact: Lonnie R. Trasamar --------------------- (507) 553-3151 March 4, 2004 Wells Financial Corp. Announces Annual Results Selected Financial Data Year ended Year ended 12/31/03 12/31/02 Net Income $ 3,540,000 $ 3,340,000 Basic earnings per share $ 3.12 $ 2.84 Diluted earnings per share $ 3.05 $ 2.75 Return on average equity 13.30% 13.31% Return on average assets 1.58% 1.47% Book value per share $ 24.15 $ 22.42 Net interest rate spread 3.16% 3.16% Net interest margin 3.33% 3.47% Allowance for loan loss to total loans 0.56% 0.62% Wells, Minnesota - March 4, 2004 - Lonnie R. Trasamar, President of Wells Financial Corp. (the Company), the holding company of Wells Federal Bank (the Bank), announced record earnings of $3,540,000 for the year ended December 31, 2003. Basic and diluted earnings per share for 2003 were $3.12 and $3.05, respectively. This compares to net income of $3,340,000 for the year ended December 31, 2002. Basic and diluted earnings per share for 2002 were $2.84 and $2.75, respectively. The increase in income for 2003 when compared to 2002 resulted, primarily, from an increase in noninterest income. During 2003, the Bank and its subsidiary, Greater Minnesota Mortgage, originated and sold to the secondary market a record amount of residential mortgage loans, primarily during the first three quarters of the year. This increased loan activity, along with improved market pricing during 2003, resulted in increases in the gain on sale of loans and loan origination and commitment fees when compared to 2002. Net income for the quarter ended December 31, 2003 was $513,000, a $444,000 decrease when compared to the quarter ended December 31, 2002. Increased interest rates on residential mortgages resulted in a lesser amount of loans being originated and sold to the secondary market during the fourth quarter of 2003 when compared to the same period in 2002 which resulted in a decrease in noninterest income. Assets increased by $3,189,000, from $220,616,000 at December 31, 2002 to $223,805,000 at December 31, 2003 due to increases in the loan portfolio and securities available for sale being partially offset by a decrease in cash. The Company's loan portfolio increased by $14,463,000, from $145,586,000 at December 31, 2002 to $160,049,000 at December 31, 2003 primarily due to an increase in agricultural and commercial real estate loans. Equity increased by $2,645,000, from $25,223,000 at December 31, 2002 to $27,868,000 at December 31, 2003. This increase was primarily due to net income for the year of $3,540,000 being partially offset by the payment of $905,000 in dividends. Wells Financial Corp. and Wells Federal Bank are headquartered in Wells, Minnesota. The Bank operates eight full service offices located in Wells, Blue Earth, Mankato, Fairmont, North Mankato, Albert Lea, St. Peter and Owatonna Minnesota and a loan origination office located in Farmington, Minnesota. During the fourth quarter of 2003 the Bank opened a loan origination office in Mason City, Iowa. The Bank is a community oriented, full service savings bank offering traditional mortgage, consumer, commercial and agricultural loan products. The Bank offers insurance, mutual funds and variable rate annuity products through its subsidiary, Wells Insurance Agency. Forward-looking Statements 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 after the date of such statements. WELLS FINANCIAL CORP. and SUBSIDIARY Consolidated Statements of Financial Condition December 31, 2003 and December 31, 2002 (Dollars in Thousands) (Unaudited)
ASSETS 2003 2002 --------- --------- Cash, including interest-bearing accounts December 31, 2003 $17,655; December 31, 2002 $35,178 $ 25,315 $ 36,571 Certificates of deposit 200 200 Securities available for sale, at fair value 27,410 19,856 Federal Home Loan Bank Stock, at cost 1,303 1,875 Loans held for sale 1,997 9,695 Loans receivable, net 160,049 145,586 Accrued interest receivable 1,209 1,387 Premises and equipment 3,585 2,975 Mortgage servicing rights, net 2,681 2,179 Other assets 53 292 --------- --------- TOTAL ASSETS $ 223,805 $ 220,616 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Deposits $ 169,662 $ 169,126 Borrowed funds 23,000 23,000 Advances from borrowers for taxes and insurance 1,585 1,347 Deferred income taxes 1,456 1,376 Accrued interest payable 34 50 Accrued expenses and other liabilities 200 494 --------- --------- TOTAL LIABILITIES 195,937 195,393 --------- --------- STOCKHOLDERS' EQUITY: Preferred stock, no par value; 500,000 shares Authorized; none outstanding - - Common stock, $.10 par value; authorized 7,000,000 Shares; issued 2,187,500 shares 219 219 Additional paid-in capital 17,154 16,985 Retained earnings, substantially restricted 26,922 24,287 Accumulated other comprehensive income 525 746 Unearned ESOP shares - (29) Unearned compensation restricted stock awards (561) (138) Treasury stock, at cost, 1,054,060 shares at December 31, 2003, and 1,062,435 shares at December 31, 2002 (16,391) (16,847) --------- --------- TOTAL STOCKHOLDERS' EQUITY 27,868 25,223 --------- --------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 223,805 $ 220,616 ========= =========
WELLS FINANCIAL CORP. and SUBSIDIARY Consolidated Statements of Income (Dollars in thousands, except per share data) (Unaudited)
Three Months Ended Year Ended December 31, December 31, ----------------- ----------------- 2003 2002 2003 2002 ------- ------- ------- ------- Interest and dividend income Loans receivable: First mortgage loans $ 1,958 $ 2,202 $ 7,447 $ 9,153 Consumer and other loans 731 791 2,848 3,186 Investment securities and other Interest bearing deposits 291 328 1,219 1,526 ------- ------- ------- ------- Total interest income 2,980 3,321 11,514 13,865 ------- ------- ------- ------- Interest Expense Deposits 707 1,112 3,350 5,002 Borrowed funds 314 314 1,245 1,245 ------- ------- ------- ------- Total interest expense 1,021 1,426 4,595 6,247 ------- ------- ------- ------- Net interest income 1,959 1,895 6,919 7,618 Provision for loan losses - - - 23 ------- ------- ------- ------- Net interest income after provision for loan losses 1,959 1,895 6,919 7,595 ------- ------- ------- ------- Noninterest income Gain on sale of loans originated for sale 269 1,155 2,840 2,229 Loan origination and commitment fees 179 770 2,250 1,696 Loan servicing fees 256 171 947 661 Insurance commissions 113 105 459 405 Fees and service charges 238 313 1,058 892 Other 61 14 196 74 ------- ------- ------- ------- Total noninterest income 1,116 2,528 7,750 5,957 ------- ------- ------- ------- Noninterest expense Compensation and benefits 1,125 1,023 4,159 3,540 Occupancy and equipment 323 226 1,153 885 Data processing 113 108 471 446 Advertising 87 74 293 236 Amortization and valuation adjustments for mortgage servicing rights 217 1,010 1,071 1,453 Other 393 349 1,752 1,289 ------- ------- ------- ------- Total noninterest expense 2,258 2,790 8,899 7,849 ------- ------- ------- ------- Income before taxes 817 1,633 5,770 5,703 Income tax expense 304 676 2,230 2,363 ------- ------- ------- ------- Net income $ 513 $ 957 $ 3,540 $ 3,340 ======= ======= ======= ======= Cash dividends declared per share $ 0.20 $ 0.18 $ 0.80 $ 0.72 ======= ======= ======= ======= Earnings per share Basic earnings per share $ 0.44 $ 0.82 $ 3.12 $ 2.84 ======= ======= ======= ======= Diluted earnings per share $ 0.43 $ 0.78 $ 3.05 $ 2.75 ======= ======= ======= =======