Wells Financial Corp fka WEFP

[10 bagger]

WEFC.. $27.50,, 1'st Qtr 2008 Results..

Wells Financial Corp. Announces First Quarter Results and Cash Dividend

WELLS, Minn., April 22 /PRNewswire-FirstCall/ --

Selected Financial Data

Quarter ended Quarter ended 03/31/09 03/31/08

Net Income $645,000 $324,000 Basic earnings per share $0.83 $0.41 Diluted earnings per share $0.83 $0.41 Return on average equity 12.4% 6.25% Return on average assets 0.99% 0.51% Book value per share $27.23 $26.27 Net interest rate spread 3.40% 2.97% Net interest rate margin 3.47% 3.09% Allowance for loan loss to total loans 0.69% 0.48%


Lonnie R. Trasamar, President of Wells Financial Corp. (the Company) (OTC Bulletin Board: WEFP), the holding company of Wells Federal Bank (the Bank), announced earnings for the first quarter of 2009 of $645,000, up $321,000 or 99.1%, when compared to the first quarter of 2008. Basic and diluted earnings per share for the first quarter of 2009 were $0.83. This compares to basic and diluted earnings per share for the first quarter of 2008 of $0.41.

The increase in net income was due to an increase of $547,000, or 62.5%, in noninterest income which resulted from an increase in gain on sale of loans originated for sale. During the first three months of 2009 reduced interest rates on loans that are originated for sale to the secondary market resulted in a dramatic increase in the refinancing of loans secured by single family dwellings and the increase in fee income.

Net interest income increased by $278,000, or 15.1% when comparing the first quarter of 2009 with the same period in 2008.

Management evaluates the adequacy of the allowance for loan losses on a quarterly basis and adjusts the allowance for loan losses based on this evaluation through the provision for loan losses. During the first quarter of 2009 the Company recorded a provision for loan losses of $385,000 as compared to $58,000 for the first quarter of 2008.

Total assets increased by $14,179,000, from $253,053,000 at December 31, 2008 to $267,232,000 at March 31, 2009 due primarily to an increase in cash. The increase in cash resulted from a combined increase of $13,161,000 in deposits, borrowed funds and advances from borrowers for taxes and insurance and from an $11,536,000 decrease in the Company's loan portfolio. The decrease in the Company's loan portfolio resulted, primarily, from the refinance of residential mortgage loans into the secondary market that is described above.

Liabilities increased by $13,674,000 during the first quarter of 2009 due to the changes in deposits, borrowed funds and advances from borrowers for taxes and insurance mentioned above.

Cash Dividend

On April 21, 2009, the Company's Board of Directors declared a $0.26 per share cash dividend, payable on May 22, 2009 to shareholders of record on May 8, 2009.

Wells Financial Corp. and Wells Federal Bank are headquartered in Wells, Minnesota. The Bank operates nine 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.