For Immediate Release Contact: Lonnie R. Trasamar
- --------------------- (507) 553-3151
April 25, 2003
Wells Financial Corp. Announces First Quarter Results
Wells, Minnesota - April 25, 2003 - Lonnie R. Trasamar, President of
Wells Financial Corp. (the Company), the holding company of Wells Federal Bank
(the Bank), announced earnings of $888,000 for the quarter ended March 31, 2003,
up $35,000 or 4.1%, when compared to the quarter ended March 31, 2002. Basic
earnings per share for the first quarter of 2003 were $0.79 per share, up $0.06
or 8.2% when compared to the first quarter of 2002. Diluted earnings per share
for the first quarter of 2003 were $0.77, up $0.06 or 8.5%, when compared to the
first quarter of 2002. Trasamar stated that he is pleased with the continued
profitability of the Company. "Loan originations by the Bank have been
excellent", he stated. He went on to explain that in addition to loan
originations by the Bank, the Bank continues to develop relationships with
correspondent banks throughout southern Minnesota to originate residential, farm
and commercial mortgage loans which gives the Bank an even greater market share.
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. 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.
Dividend
On April 18, 2003, the Company announced a cash dividend of $0.20 per
share payable on May 15, 2003 to shareholders of record on May 1, 2003.
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.
Selected Financial Information
03/31/03 12/31/02
------------------------------------------
Return on average assets (1) 1.59% 1.47%
Return on average equity (1) 13.86% 13.31%
Net interest rate spread 2.89% 3.16%
Net interest margin 3.17% 3.47%
Book value per share $22.89 $22.42
(1) annualized
WELLS FINANCIAL CORP. and SUBSIDIARY
Consolidated Statements of Financial Condition
March 31, 2003 and December 31, 2002
(Dollars in Thousands)
(Unaudited)
ASSETS
2003 2002
--------- ---------
Cash, including interest-bearing accounts
March 31, 2003 $45,636; December 31, 2002 $35,178 $ 46,560 $ 36,571
Certificates of deposit 200 200
Securities available for sale, at fair value 20,315 19,856
Federal Home Loan Bank Stock, at cost 1,875 1,875
Loans held for sale 14,439 9,695
Loans receivable, net 135,662 145,586
Accrued interest receivable 1,233 1,387
Foreclosed real estate 417 209
Premises and equipment 3,400 2,975
Mortgage servicing rights, net 2,242 2,179
Other assets 115 83
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TOTAL ASSETS $ 226,458 $ 220,616
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LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits $ 172,671 $ 169,126
Borrowed funds 23,000 23,000
Advances from borrowers for taxes and insurance 2,129 1,347
Deferred income taxes: 1,301 1,376
Accrued interest payable 126 50
Accrued expenses and other liabilities 1,348 494
--------- ---------
TOTAL LIABILITIES 200,575 195,393
--------- ---------
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 16,959 16,985
Retained earnings, substantially restricted 24,950 24,287
Accumulated other comprehensive income 627 746
Unearned ESOP shares - (29)
Unearned compensation restricted stock awards (117) (138)
Treasury stock, at cost, 1,056,614 shares at March 31, 2003, and
1,062,435 shares at December 31, 2002 (16,755) (16,847)
--------- ---------
TOTAL STOCKHOLDERS' EQUITY 25,883 25,223
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 226,458 $ 220,616
========= =========
WELLS FINANCIAL CORP. and SUBSIDIARY
Consolidated Statements of Income
Three Months Ended March 31, 2003 and 2002
(Dollars in thousands, except per share data)
(Unaudited)
2003 2002
---------- ----------
Interest and dividend income
Loans receivable:
First mortgage loans $ 1,939 $ 2,375
Consumer and other loans 721 786
Investment securities and other
interest bearing deposits 340 391
---------- ----------
Total interest income 3,000 3,552
---------- ----------
Interest Expense
Deposits 986 1,389
Borrowed funds 307 307
---------- ----------
Total interest expense 1,293 1,696
---------- ----------
Net interest income 1,707 1,856
Provision for loan losses -- 23
---------- ----------
Net interest income after provision for losses 1,707 1,833
---------- ----------
Noninterest income
Gain on sale of loans originated for sale 820 487
Loan origination and commitment fees 587 305
Loan servicing fees 218 154
Insurance commissions 94 80
Fees and service charges 220 201
Other 30 8
---------- ----------
Total noninterest income 1,969 1,235
---------- ----------
Noninterest expense
Compensation and benefits 911 787
Occupancy and equipment 261 233
Data processing 125 136
Advertising 59 46
Amortization and valuation adjustments for
mortgage servicing rights 519 119
Other 341 298
---------- ----------
Total noninterest expense 2,216 1,619
---------- ----------
Income before income taxes 1,460 1,449
Income tax expense 572 596
---------- ----------
Net Income $ 888 $ 853
========== ==========
Earnings per share
Basic $ 0.79 $ 0.73
========== ==========
Diluted $ 0.77 $ 0.71
========== ==========
Weighted average number of common shares outstanding:
Basic 1,125,866 1,162,394
========== ==========
Diluted 1,147,342 1,194,997
========== ==========