EX-99 2 ex99.txt EX99 PRESS RELEASE - WELLS FIN. For Immediate Release Contact: Lonnie R. Trasamar --------------------- April 30, 2004 (507) 553-3151 Wells Financial Corp. Announces First Quarter Results Selected Financial Data Three months ended Three months ended March 31, 2004 March 31, 2003 Net Income $ 477,000 $ 888,000 Basic earnings per share $ 0.41 $ 0.79 Diluted earnings per share $ 0.40 $ 0.77 Return on average equity 6.80% 13.86% Return on average assets 0.85% 1.59% Book value per share $ 24.33 $ 22.89 Net interest rate spread 3.59% 2.89% Net interest margin 3.76% 3.17% Allowance for loan loss to total loans 0.51% 0.61% Wells, Minnesota - April 30, 2004 - Lonnie R. Trasamar, President of Wells Financial Corp. (the "Company"), the holding company of Wells Federal Bank (the "Bank"), announced earnings of $477,000 for the quarter ended March 31, 2004, down $411,000 or 46.3% when compared to the quarter ended March 31, 2003. Basic and diluted earnings per share were $0.41 and $0.40, respectively, for the quarter ended March 31, 2004. This compares to basic and diluted earnings per share of $0.79 and $0.77, respectively for the quarter ended March 31, 2003. The decrease in net income was primarily the result of a decrease in gain on sale of loans originated for sale. During the first quarter of 2004 fewer loans were originated for sale when compared to the first quarter of 2003 resulting in a decrease in the gain on sale of loans originated for sale. Partially offsetting the decrease in gain on sale of loans originated for sale was a $254,000 increase in net interest income. Trasamar stated that while the residential mortgage originations have decreased when compared to last year, he is encouraged by increases in the Company's net interest margin, net interest spread and the increase in the Company's loan portfolio. Total assets increased by $2.9 million from $223,805,000 at December 31, 2003 to $226,704,000 at March 31, 2004 primarily due to cash that was received from increases in deposits and advances from borrowers for taxes and insurance being used to fund loan growth. The Company also used cash and cash received from a decrease in securities available for sale to fund the increases in loans receivable and loans held for sale of $7.5 million and $4.4 million, respectively, during the first quarter of 2004. Liabilities increased by $2,472,000 from $195,937,000 at December 31, 2003 to $198,409,000 at March 31, 2004. This increase is primarily due to a $1,240,000 increase in deposits and a $973,000 increase in advances from borrowers for taxes and insurance. 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 loan origination offices located in Farmington, Minnesota and 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 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. WELLS FINANCIAL CORP. and SUBSIDIARY Consolidated Statements of Financial Condition March 31, 2004 and December 31, 2003 (Dollars in Thousands) (Unaudited)
ASSETS 2004 2003 ------------------- ------------------ Cash, including interest-bearing accounts March 31, 2004 $9,268; December 31, 2003 $17,655 $ 17,567 $ 25,318 Certificates of deposit 125 200 Securities available for sale, at fair value 26,005 27,410 Federal Home Loan Bank Stock, at cost 1,304 1,303 Loans held for sale 6,393 1,997 Loans receivable, net 167,562 160,049 Accrued interest receivable 1,239 1,209 Premises and equipment, net 3,798 3,585 Mortgage servicing rights, net 2,518 2,681 Other assets 193 53 ------------------- ------------------ TOTAL ASSETS $ 226,704 $ 223,805 =================== ================== LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Deposits $ 170,902 $ 169,662 Borrowed funds 23,000 23,000 Advances from borrowers for taxes and insurance 2,558 1,585 Deferred income taxes 1,507 1,456 Accrued interest payable 126 34 Accrued expenses and other liabilities 316 200 ------------------- ------------------ TOTAL LIABILITIES 198,409 195,937 ------------------- ------------------ 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 17,146 17,154 Retained earnings, substantially restricted 27,145 26,922 Accumulated other comprehensive income 614 525 Unearned compensation restricted stock awards (583) (561) Treasury stock, at cost, 1,024,549 shares at March 31, 2004, and 1,033,673 shares at December 31, 2003 (16,246) (16,391) ------------------- ------------------ TOTAL STOCKHOLDERS' EQUITY 28,295 27,868 ------------------- ------------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 226,704 $ 223,805 =================== ==================
WELLS FINANCIAL CORP. and SUBSIDIARY Consolidated Statements of Income Three Months Ended March 31, 2004 and 2003 (Dollars in thousands, except per share data) (Unaudited)
2004 2003 --------------- ------------------- Interest and dividend income Loans receivable: First mortgage loans $ 1,730 $ 1,939 Consumer and other loans 976 721 Investment securities and other interest bearing deposits 226 340 --------------- ------------------- Total interest income 2,932 3,000 --------------- ------------------- Interest expense Deposits 661 986 Borrowed funds 310 307 --------------- ------------------- Total interest expense 971 1,293 --------------- ------------------- Net interest income 1,961 1,707 Provision for loan losses - - --------------- ------------------- Net interest income after provision for loan losses 1,961 1,707 --------------- ------------------- Noninterest income Gain on sale of loans originated for sale 279 1,407 Loan servicing fees 241 218 Insurance commissions 188 94 Fees and service charges 181 220 Other 30 30 --------------- ------------------- Total noninterest income 919 1,969 --------------- ------------------- Noninterest expense Compensation and benefits 1,022 911 Occupancy and equipment 264 261 Data processing 140 125 Advertising 81 59 Amortization and valuation adjustments for mortgage servicing rights 240 519 Other 387 341 --------------- ------------------- Total noninterest expense 2,134 2,216 --------------- ------------------- Income before income taxes 746 1,460 Income tax expense 269 572 --------------- ------------------- Net Income $ 477 $ 888 =============== =================== Cash dividend declared per common share $ 0.22 $ 0.20 =============== =================== Earnings per share Basic $ 0.41 $ 0.79 =============== =================== Diluted $ 0.40 $ 0.77 =============== =================== Weighted average number of common shares outstanding: Basic 1,158,546 1,125,866 =============== =================== Diluted 1,196,291 1,147,342 =============== ===================