Date of Report (Date of earliest event reported)
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July 24, 2015
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Wells Financial Corp.
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(Exact name of registrant as specified in its charter)
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Minnesota
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333-202694
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41-1799504
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(State or other jurisdiction
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(Commission File
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(IRS Employer
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of incorporation)
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Number)
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Identification No.)
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53 First Street, S.W., Wells, Minnesota
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56097
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(Address of principal executive offices)
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(Zip Code)
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Registrant's telephone number, including area code:
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(507) 553-3151
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Not Applicable
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(Former name or former address, if changed since last report)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).
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WELLS FINANCIAL CORP.
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Date:
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July 24, 2015
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By:
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/s/ James D. Moll | |
James D. Moll
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President and Chief Executive Officer
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(Duly Authorized Representative)
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Quarter Ended June 30,
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Six Months Ended June 30,
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2015
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2014
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2015
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2014
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Net Income
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$ | 550 | $ | 96 | $ | 1,043 | $ | 347 | ||||||||
Basic earnings per share
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$ | 0.75 | $ | 0.13 | $ | 1.41 | $ | 0.45 | ||||||||
Diluted earnings per share
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$ | 0.75 | $ | 0.13 | $ | 1.41 | $ | 0.45 | ||||||||
Return on average equity (1)(2)
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8.1 | % | 1.5 | % | 7.7 | % | 2.6 | % | ||||||||
Return on average assets(1)
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0.9 | % | 0.2 | % | 0.8 | % | 0.3 | % | ||||||||
Net interest rate spread
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3.6 | % | 3.5 | % | 3.7 | % | 3.4 | % | ||||||||
Net interest rate margin
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3.6 | % | 3.5 | % | 3.7 | % | 3.4 | % | ||||||||
Book value per share (2)
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$ | 36.94 | $ | 34.83 | $ | 36.94 | $ | 34.83 | ||||||||
(1) Annualized
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(2) Includes stockholders’ equity and mezzanine equity
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Wells Financial Corp. and Subsidiary
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Consolidated Statement of Financial Condition
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(Dollars in Thousands, except per share data)
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ASSETS
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06/30/15
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12/31/14
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(Unaudited)
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Cash, including interest-bearing accounts:
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$ | 19,865 | $ | 14,373 | ||||
06/30/15 $11,037; 12/31/14 $7,411
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||||||||
Certificates of deposit
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1,241 | 4,181 | ||||||
Fed Funds Sold
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3,000 | 2,000 | ||||||
Securities available for sale
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32,822 | 34,177 | ||||||
Federal Home Loan Bank Stock, at cost
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2,068 | 2,079 | ||||||
Loans held for sale
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3,567 | 1,707 | ||||||
Loans receivable, net
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177,859 | 182,050 | ||||||
Accrued interest receivable
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966 | 834 | ||||||
Premises and equipment
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3,079 | 3,172 | ||||||
Mortgage servicing rights, net
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1,871 | 1,886 | ||||||
Foreclosed real estate
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3,199 | 3,656 | ||||||
Other assets
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1,764 | 1,711 | ||||||
TOTAL ASSETS
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$ | 251,301 | $ | 251,826 | ||||
LIABILITIES, MEZZANINE EQUITY AND
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||||||||
STOCKHOLDERS' EQUITY
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LIABILITIES:
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Deposits
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$ | 220,860 | $ | 221,972 | ||||
Advances from borrowers for taxes and insurance
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2,621 | 2,630 | ||||||
Accrued interest payable
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60 | 17 | ||||||
Accrued expenses and other liabilities
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575 | 588 | ||||||
TOTAL LIABILITIES
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224,116 | 225,207 | ||||||
Commitments, Contingencies and Credit Risk
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MEZZANINE EQUITY
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Redeemable common stock held by ESOP, $0.10 par value
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89,925 shares at June 30, 2015; 95,602 shares at December 31, 2014
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2,383 | 2,533 | ||||||
STOCKHOLDER'S EQUITY:
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Preferred stock, no par value; 500,000 shares authorized; none
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||||||||
outstanding
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- | - | ||||||
Common stock, $.10 par value; 7,000.000 shares
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authorized; 2,097,575 shares issued
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$ | 209 | $ | 209 | ||||
Additional paid in capital
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17,116 | 17,110 | ||||||
Retained earnings, substantially restricted
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36,479 | 35,552 | ||||||
Other comprehensive income
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41 | 93 | ||||||
Treasury stock, at cost, 1,451,478 shares at June
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30, 2015; 1,445,248 shares at December 31, 2014
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(29,043 | ) | (28,878 | ) | ||||
TOTAL STOCKHOLDERS' EQUITY
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24,802 | 24,086 | ||||||
TOTAL LIABILITIES, MEZZANINE EQUITY AND
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$ | 251,301 | $ | 251,826 | ||||
STOCKHOLDERS' EQUITY
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Wells Financial Corp. and Subsidiary
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Consolidated Statement of Income
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(Dollars in thousands, except per share data)
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(Unaudited)
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Three Months Ended
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Six Months Ended
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June 30,
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June 30,
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2015
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2014
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2015
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2014
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Interest and dividend income
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Loans receivable:
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Residential loans
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$ | 653 | $ | 667 | $ | 1,378 | $ | 1,320 | ||||||||
Commercial Loans
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364 | 316 | 723 | 623 | ||||||||||||
Ag Real Estate Loans
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359 | 345 | 743 | 676 | ||||||||||||
Consumer and other loans
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686 | 632 | 1,393 | 1,258 | ||||||||||||
Investment securities and other interest-
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bearing deposits
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158 | 177 | 323 | 371 | ||||||||||||
Total interest income
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2,220 | 2,137 | 4,560 | 4,248 | ||||||||||||
Interest expense
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Deposits
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108 | 154 | 225 | 314 | ||||||||||||
Total interest expense
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108 | 154 | 225 | 314 | ||||||||||||
Net interest income
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2,112 | 1,983 | 4,335 | 3,934 | ||||||||||||
Provision for loan losses
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- | 150 | 70 | 320 | ||||||||||||
Net interest income after
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provision for loan losses
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2,112 | 1,833 | 4,265 | 3,614 | ||||||||||||
Noninterest income
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Gain on sale of loans
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359 | 174 | 524 | 350 | ||||||||||||
Loan servicing fees
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215 | 207 | 430 | 432 | ||||||||||||
Insurance commissions
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169 | 151 | 341 | 292 | ||||||||||||
Fees and service charges
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123 | 112 | 229 | 217 | ||||||||||||
Other
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222 | 222 | 446 | 453 | ||||||||||||
Total noninterest income
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1,088 | 866 | 1,970 | 1,744 | ||||||||||||
Noninterest expense
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||||||||||||||||
Compensation and benefits
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1,145 | 1,188 | 2,257 | 2,367 | ||||||||||||
Occupancy and equipment
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173 | 193 | 357 | 401 | ||||||||||||
Federal insurance premiums
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51 | 53 | 105 | 107 | ||||||||||||
Data processing
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216 | 204 | 430 | 419 | ||||||||||||
Advertising
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64 | 62 | 123 | 110 | ||||||||||||
Amortization & Valuation adjustments for MSR's
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104 | 78 | 177 | 149 | ||||||||||||
Other real estate owned
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142 | 299 | 256 | 354 | ||||||||||||
Other
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421 | 463 | 840 | 873 | ||||||||||||
Total noninterest expense
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2,316 | 2,540 | 4,545 | 4,780 | ||||||||||||
Income before income taxes
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884 | 159 | 1,690 | 578 | ||||||||||||
Income tax expense
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334 | 63 | 647 | 231 | ||||||||||||
Net Income
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$ | 550 | $ | 96 | $ | 1,043 | $ | 347 | ||||||||
Earnings per share
|
||||||||||||||||
Basic earnings per share
|
$ | 0.75 | $ | 0.13 | $ | 1.41 | $ | 0.45 | ||||||||
Diluted earnings per share
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$ | 0.75 | $ | 0.13 | $ | 1.41 | $ | 0.45 |