Wells Financial Corp. Reports Third Quarter Earnings, Net Income Decreases by $18,000

Strategic Insights -

Wells Financial Corp., the holding company of Wells Federal Bank, announced third quarter earnings of $426,000, down from $444,000 in the same period of 1999. Despite the decrease, the company reported a 20% increase in basic earnings per share to $0.36, and a 21% increase in diluted earnings per share to $0.35.

The company's net income for the nine months ended September 30, 2000, was $1,235,000, a decrease of $223,000 from the same period in 1999. Basic and diluted earnings per share for the nine months ended September 30, 2000, increased by 2.1% to $0.98 and $0.96, respectively.

Key Takeaways:

  • Wells Financial Corp. reported third quarter earnings of $426,000, a decrease of $18,000 from the same period in 1999.
  • The company's net interest income increased by 8.2% to $1,520,000, while net interest income after provision for loan losses decreased by 2.3% to $1,520,000.
  • Total assets increased by $17,682,000 from $199,836,000 at December 31, 1999, to $217,518,000 at September 30, 2000, due to a $19,485,000 increase in the company's loan portfolio.
  • President Lawrence H. Kruse stated that the company will continue to aggressively originate residential real estate loans for sale to the secondary market to expand the customer base and increase servicing and other fee income.
  • The company announced a quarterly cash dividend of $0.16 per share, an increase of $0.01 per share or 6.7% compared to the cash dividend paid in the prior quarter.
  • The company's loan portfolio increased by $19,485,000, with much of the growth occurring in home equity and farm real estate loans, which generally have shorter terms and higher rates than loans on single family dwellings.

Statistics:

  • Net income for the third quarter of 2000: $426,000
  • Decrease in net income from the third quarter of 1999: $18,000
  • Basic earnings per share for the third quarter of 2000: $0.36
  • Increase in basic earnings per share from the third quarter of 1999: 20%
  • Diluted earnings per share for the third quarter of 2000: $0.35
  • Increase in diluted earnings per share from the third quarter of 1999: 21%
  • Net income for the nine months ended September 30, 2000: $1,235,000
  • Decrease in net income from the nine months ended September 30, 1999: $223,000
  • Basic earnings per share for the nine months ended September 30, 2000: $0.98
  • Increase in basic earnings per share from the nine months ended September 30, 1999: 2.1%
  • Diluted earnings per share for the nine months ended September 30, 2000: $0.96
  • Increase in diluted earnings per share from the nine months ended September 30, 1999: 2.1%

Sources:

  • Wells Financial Corp., Press Release, October 24, 2000 (Reported earnings for the third quarter of 2000, decrease in net income from the third quarter of 1999, and increase in earnings per share)
  • Wells Financial Corp., Consolidated Statements of Financial Condition, September 30, 2000 (Total assets, loan portfolio, and net worth)
  • Wells Financial Corp., Consolidated Statements of Income, September 30, 2000 (Net interest income, noninterest income, and noninterest expense)