Wells Financial Corp fka WEFP

[10 bagger]

WEFC..$27.50 Annual ,, 2008 results..

Wells Financial Corp. Announces Annual Results and Cash Dividend

WELLS, Minn., Jan. 23 /PRNewswire-FirstCall/ --

Selected Financial Data

Year ended December 31, 2008 2007

Net Income $1,245 $1,714 Basic earnings per share $1.59 $1.91 Diluted earnings per share $1.58 $1.90 Return on average equity 6.03% 7.38% Return on average assets 0.50% 0.66% Net interest rate spread 3.25% 3.06% Net interest rate margin 3.35% 3.23% Book value per share $26.58 $26.06

Lonnie R. Trasamar, President of Wells Financial Corp. (OTC Bulletin Board: WEFP) (the Company), the holding company of Wells Federal Bank (the Bank), announced annual earnings for 2008 of $1,245,000, down $469,000 or 27.4%, when compared to 2007. Basic and diluted earnings per share for 2008 were $1.59 and $1.58, respectively, down $0.32 when compared to 2007. The decrease in net income for 2008 when compared to 2007 resulted from a $485,000 other-than-temporary impairment the Company realized on its Federal Home Loan Mortgage Corp. preferred stock and from a $467,000 increase in the provision for loan loss.

Net income for the fourth quarter of 2008 was $455,000, up $63,000, or 16.1% when compared to the fourth quarter of 2007.

When comparing December 31, 2008 to December 31, 2007, total assets decreased by $5,245,000 due, primarily, to cash being used to fund a reduction in deposits. Liabilities decreased by $5,218,000 during 2008 due to a $6,743,000 decrease in deposits, primarily higher cost certificates of deposit.

Cash Dividend Announcement

On January 20, 2009, the Company's Board of Directors declared a $0.26 per share cash dividend, payable on February 24, 2009 to shareholders of record on February 10, 2009. This is the thirteenth consecutive quarter that the Company has paid a $0.26 dividend.