WELLS FINANCIAL CORP. 
By
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
Net income for the fourth quarter of 2008 was
When comparing
Cash Dividend Announcement
On
Forward-looking Statements
Statements in this press release that are not strictly historical may be "forward-looking" statements, which involve risks and uncertainties. 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 arising after the date hereof.
**An unaudited consolidated balance sheet and income statement are part of this press release**
WELLS FINANCIAL CORP. and SUBSIDIARY
Consolidated Statements of Financial Condition
December 31, 2008 and December 31, 2007
(Dollars in Thousands)
(Unaudited)
ASSETS
2008 2007
Cash, including interest-bearing accounts
December 31, 2008 $2,689; December 31, 2007
$7,138 $8,744 $14,182
Certificates of deposit 700 300
Securities available for sale, at fair value 8,420 9,082
Federal Home Loan Bank Stock, at cost 3,302 2,329
Loans held for sale 2,974 1,821
Loans receivable, net 217,425 220,974
Accrued interest receivable 1,813 2,056
Premises and equipment, net 3,961 4,225
Mortgage servicing rights, net 1,294 1,503
Other assets 4,420 1,826
TOTAL ASSETS $253,053 $258,298
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits $182,888 $189,631
Borrowed funds 46,806 44,985
Advances from borrowers for taxes and insurance 2,081 2,095
Deferred income taxes 205 576
Accrued interest payable 84 128
Accrued expenses and other liabilities 376 231
TOTAL LIABILITIES 232,440 237,646
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 17,144 17,091
Retained earnings, substantially restricted 31,311 30,884
Accumulated other comprehensive income 23 206
Treasury stock, at cost, 1,394,885 shares at
December 31, 2007, and 1,247,704 shares at
December 31, 2006 (28,084) (27,748)
TOTAL STOCKHOLDERS' EQUITY 20,613 20,652
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $253,053 $258,298
WELLS FINANCIAL CORP. and SUBSIDIARY
Consolidated Statements of Income
(Dollars in thousands, except per share data)
(Unaudited)
Year Ended
December 31,
2008 2007
Interest and dividend income
Loans receivable $14,166 $15,623
Investment securities and other
interest bearing deposits 688 870
Total interest income 14,854 16,493
Interest Expense
Deposits 5,140 6,047
Borrowed funds 1,870 2,530
Total interest expense 7,010 8,577
Net interest income 7,844 7,916
Provision for loan losses 538 71
Net interest income after provision for
loan losses 7,306 7,845
Noninterest income
Gain on sale of loans originated
for sale 853 712
Loan servicing fees 910 927
Insurance commissions 601 572
Fees and service charges 683 703
Other 334 179
Total noninterest income 3,381 3,093
Noninterest expense
Compensation and benefits 4,089 4,224
Occupancy and equipment 1,175 1,245
Data processing 780 714
Advertising 238 275
Amortization and valuation adjustments
for mortgage servicing rights 552 545
Impairment of Securities Available
for Sale 485 -
Other 1,373 1,270
Total noninterest expense 8,692 8,273
Income before taxes 1,995 2,665
Income tax expense 750 951
Net income $1,245 $1,714
Cash dividends declared per share $1.04 $1.04
Earnings per share
Basic $1.59 $1.91
Diluted $1.58 $1.90
Weighted average number of common
shares outstanding:
Basic 784,746 895,663
Diluted 788,027 901,828
SOURCE Wells Financial Corp.
