NEW YORK, April 3, 2007 (PRIME NEWSWIRE) -- WebFinancial Corporation (Pink Sheets:WEFN) today announced a net income of $9,393,000 or $4.30 per share for the year ended December 31, 2006 as compared to a net loss of $(1,378,000) or $(0.63) loss per share for the year ended December 31, 2005.
Net income for the year ended December 31, 2006 included a $10.5 million pre-tax gain on sale of securities. These securities were acquired in a private placement in 2005, were subject to Rule 144 of the Securities Act of 1933 and contained certain voting restrictions. During 2006, the restrictions were removed and the securities were sold for a $10.5 million pre-tax gain.
About WebFinancial
WebFinancial, through its operating subsidiary, WebBank, operates in niche banking markets. WebBank provides commercial and consumer specialty finance transactions. WebBank is a small, business-oriented institution insured by the Federal Deposit Insurance Corporation ("FDIC") and examined and regulated by the FDIC and State of Utah Department of Financial Institutions.
On May 15, 2006, the Company filed a Form 15 with the Securities and Exchange Commission deregistering its Common Stock and suspending its reporting obligations with the Securities and Exchange Commission under the Securities Exchange Act of 1934. The Company presently intends to continue to make available its periodic financial information.
WEBFINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Amounts in thousands except share data)
December 31, 2006 2005
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Assets
Cash and due from banks $ 7,473 $ 8,521
Investment securities
Held to maturity, at cost (estimated fair value
of $3 and $44, respectively) 3 44
Available for sale, at market 11,704 2,615
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Total investment securities 11,707 2,659
Loans, net of deferred charges 16,487 7,663
Allowance for loan losses (284) (184)
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Total loans, net 16,203 7,479
Premises and equipment, net 15 16
Accrued interest receivable 127 118
Deferred tax asset 340 89
Investments 4,730 4,596
Goodwill 81 --
Other assets 314 890
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$ 40,990 $ 24,368
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Liabilities and Stockholders' Equity
Savings and money market $ 1,032 $ --
Time deposits 6,580 999
Accrued interest payable 19 2
Custodial payable - commercial loans 62 722
Other liabilities 2,323 458
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Total liabilities 10,016 2,181
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Minority interest -- 311
Commitments and contingencies
Stockholders' Equity
Preferred stock, 500,000 shares authorized,
none issued -- --
Common Stock, 5,000,000 shares authorized
$.001 par value, 2,183,366 shares issued and
outstanding, respectively 2 2
Paid-in capital 47,647 47,647
Accumulated deficit (17,354) (26,747)
Accumulated other comprehensive income 679 974
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Total stockholders' equity 30,974 21,876
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$ 40,990 $ 24,368
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WEBFINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands except share data)
For the years ended December 31, 2006 2005
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Interest income
Loans, including fees $ 938 $ 635
Lease finance loans 86 --
Investment securities 50 61
Deposits in other banks 453 357
Federal funds sold 71 --
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Total interest income 1,598 1,053
Interest expense on deposits (111) (75)
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Net interest income 1,487 978
Provision for loan losses (109) (290)
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Net interest income after provision
for loan losses 1,378 688
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Non-interest income
Gain on sale of securities 10,505 40
Premium on loan sales 169 79
Fee for service 525 349
Loan origination fee 158 --
Other income 57 50
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Total non-interest income 11,414 518
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Non-interest expenses
Salaries, wages, and benefits 1,044 582
Professional fees 532 792
Unrealized gain (loss) on trading liabilities (47) 47
Realized loss on trading liabilities -- 37
Other management fees - related party 310 286
Other general and administrative 1,015 710
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Total non-interest expense 2,854 2,454
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Income (loss) before income taxes 9,938 (1,248)
Income tax expense (545) (218)
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Income (Loss) before minority interest 9,393 (1,466)
Income (Loss) attributable to minority
interests -- 88
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Net income (Loss) $ 9,393 $ (1,378)
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Income (Loss) per common share (note 10):
Basic $ 4.30 $ (0.63)
Diluted $ 4.30 $ (0.63)
Weighted average number of common shares
(note 10):
Basic 2,183,366 2,183,366
Diluted 2,184,600 2,183,366