HMN Financial, Inc. (HMNF: Quote), the $706 million holding company for Home Federal Savings Bank, late Friday reported that it turned to profit in its first quarter from last year's loss, benefited by significantly lower provision for loan losses, despite lower net interest income.
For its first quarter, net income available to shareholders was $2.34 million or $0.58 per share, compared to a loss of $32 thousand or $0.01 per share a year ago.
Net income was $2.80 million, compared to net income of $0.4 million in the first quarter of 2011 gain on the previously announced branch sale
The results also were benefited by $0.6 million gain on the previously announced branch sale, and $0.4 million increase in the gains recognized on the sales of loans between the periods.
Net interest income fell 16.5 percent to $6.2 million from $7.4 million last year.
Provision for loan losses was negative $0.1 million, an improvement of $2.1 million from a year ago primarily because there were fewer decreases in the estimated value of the underlying collateral supporting commercial real estate loans.
Interest expense also plunged 36.9 percent to $2.1 million mainly because of a $119 million decrease in the average interest-bearing liabilities between the periods.
Home Federal Savings Bank President Bradley Krehbiel said, "We will continue to focus our efforts on increasing our core deposit relationships while reducing non-performing assets and expenses. We believe that, over time, our focus on these areas will be effective in generating improved financial results."
HMNF closed Friday's trading at $2.71, up $0.05 or 1.88 percent percent.
| || |
| To receive FREE breaking news email alerts for HMN Financial Inc. and others in your portfolio|
by RTT Staff Writer
For comments and feedback: email@example.com