HMN Financial, Inc. (NASDAQ:HMNF):
EARNINGS (LOSS) SUMMARY Three Months Ended
Year Ended December 31, December 31,
(dollars in thousands, except per
share amounts)
2009 2008 2009
2008 Net income (loss) $ 149
(2,538 ) $ (10,796 )
(10,127 )
Net loss available
to common stockholders
(292
)
(2,575
)
(12,543
)
(10,164
)
Diluted loss per common share (0.08 )
(0.70 ) (3.39 ) (2.78 )
Return (loss) on average assets 0.06
%
(0.88 ) % (1.00 )
%
(0.91 ) % Return (loss) on average common
equity 0.59
%
(11.43 ) % (10.33 )
%
(10.61 ) % Book value per common share
$ 17.94 21.31 $ 17.94
21.31
HMN Financial, Inc. (HMN or the Company) (NASDAQ:HMNF), the $1.0
billion holding company for Home Federal Savings Bank (the Bank),
today reported net income of $149,000 for the fourth quarter of
2009, a $2.6 million improvement from a net loss of $2.5 million
for the fourth quarter of 2008. Due to preferred stock dividends
and discounts, there was a net loss available to common
shareholders for the fourth quarter of 2009 of $292,000, a change
of $2.3 million, from a net loss available to common shareholders
of $2.6 million for the fourth quarter of 2008. Diluted loss per
common share for the fourth quarter of 2009 was $0.08, a $0.62
improvement from the diluted loss per common share of $0.70 for the
fourth quarter of 2008. The improvement in net income for the
quarter is due primarily to a $4.8 million decrease in the loan
loss provision between the periods as a result of a decrease in the
allowance required for risk-rated commercial real estate loans.
President’s Statement
"We are pleased to report net income for the fourth quarter of
2009,” said Bradley Krehbiel, Principal Executive Officer of HMN.
“The economic environment for commercial real estate continues to
be challenging; however, we are encouraged by the renewed interest
in some of the real estate supporting some of our non-performing
loans. We continue to focus our efforts on reducing non-performing
assets, reducing industry loan concentrations, increasing our core
deposit relationships and reducing expenses. We believe that, over
time, our focus on these areas will be effective in generating
improved financial results. In the meantime, Home Federal Savings
Bank continues to have adequate available liquidity and its capital
position remains above the levels required for it to be considered
a well capitalized financial institution by regulatory
standards.”
Fourth Quarter Results
Net Interest Income
Net interest income was $8.0 million for the fourth quarter of
2009, a decrease of $245,000, or 3.0%, compared to $8.3 million for
the fourth quarter of 2008. Interest income was $13.3 million for
the fourth quarter of 2009, a decrease of $2.8 million, or 17.3%,
from $16.1 million for the same period in 2008. Interest income
decreased primarily because of a $129.4 million decrease in the
average interest-earning assets between the periods. The decrease
in average interest-earning assets is primarily the result of a
decrease in outstanding loans between the periods. Interest income
also decreased because of a decline in the average yields earned on
loans and investments. The decreased average yields were the result
of the 175 basis point decrease in the prime interest rate that
occurred in the fourth quarter of 2008. Decreases in the prime
rate, which is the rate that banks charge their prime business
customers, generally decrease the rates on adjustable rate consumer
and commercial loans in the portfolio and on new loans originated.
Interest income was also adversely affected by the increase in
non-performing loans between the periods. The average yield on
interest earning assets was 5.43% for the fourth quarter of 2009, a
decrease of 38 basis points from the 5.81% average yield for the
fourth quarter of 2008.
Interest expense was $5.3 million for the fourth quarter of
2009, a decrease of $2.5 million, or 32.6%, from $7.8 million for
the fourth quarter of 2008. Interest expense decreased primarily
because of a $133.1 million decrease in average interest-bearing
liabilities between the periods. The decrease in average
interest-bearing liabilities is primarily the result of a decrease
in the outstanding brokered certificates of deposits between the
periods. Interest expense also decreased because of the lower
interest rates paid on money market accounts and certificates of
deposits. The decreased rates were the result of the 175 basis
point decrease in the federal funds rate that occurred during the
fourth quarter of 2008 and the 225 basis point decrease that
occurred in the first nine months of 2008. Decreases in the federal
funds rate, which is the rate that banks charge other banks for
short term loans, generally have a lagging effect and decrease the
rates banks pay for deposits. The lagging effect of deposit rate
changes is primarily due to the Bank’s deposits that are in the
form of certificates of deposits which do not re-price immediately
when the federal funds rate changes. The average interest rate paid
on interest bearing liabilities was 2.28% for the fourth quarter of
2009, a decrease of 68 basis points from the 2.96% average rate
paid in the fourth quarter of 2008. Net interest margin (net
interest income divided by average interest earning assets) for the
fourth quarter of 2009 was 3.28%, an increase of 29 basis points,
compared to 2.99% for the fourth quarter of 2008.
Provision for Loan
Losses
The provision for loan losses was $3.4 million for the fourth
quarter of 2009, a decrease of $4.8 million, or 58.1%, from $8.2
million for the fourth quarter of 2008. The provision decreased
primarily because of a decrease in the allowance required for
risk-rated commercial loans in the fourth quarter of 2009 when
compared to the same period in 2008. In the fourth quarter of 2008,
the provision for loan losses increased primarily due to declines
in the estimated value of the real estate supporting commercial
real estate loans. Total non-performing assets were $77.4 million
at December 31, 2009, an increase of $184,000, or 0.2%, from $77.2
million at September 30, 2009. During the fourth quarter of 2009,
non-performing loans decreased $584,000 to $61.1 million and
foreclosed and repossessed assets increased $768,000 to $16.3
million. The non-performing loan and foreclosed and repossessed
asset activity for the quarter was as follows:
(Dollars in thousands)
Non-performing
loans Foreclosed and repossessed assets
September 30, 2009 $ 61,711 September 30, 2009 $ 15,494 Classified
as non-performing 9,076 Transferred from non-performing loans 2,116
Charge offs (6,888 ) Other foreclosures/repossessions 165 Principal
payments received (384 ) Real estate sold (1,451 ) Classified as
accruing (272 ) Net gain on sale of assets 57 Transferred to real
estate owned (2,116 ) Write downs (119 ) December 31,
2009 $ 61,127 December 31, 2009 $ 16,262
The following table summarizes the amounts and categories of
non-performing assets in the Bank’s portfolio and loan delinquency
information as of the end of the two most recently completed
quarters and December 31, 2008.
December 31, September 30,
December 31, (Dollars in thousands) 2009
2009 2008 Non-Accruing
Loans: One-to-four family real estate $ 2,132 $ 1,857 $ 7,251
Commercial real estate 37,122 38,731 46,953 Consumer 4,086
4,302 5,298 Commercial business 17,787 16,821 4,671 Total 61,127
61,711 64,173 Other assets 0 0 25 Foreclosed and Repossessed
Assets: One-to-four family real estate 1,011 793 258 Consumer 5 0 0
Commercial real estate 15,246 14,701 10,300 Total non-performing
assets $ 77,389 $ 77,205 $ 74,756 Total as a percentage of total
assets 7.47 % 7.48 % 6.53 % Total non-performing loans $ 61,127 $
61,711 $ 64,173 Total as a percentage of total loans receivable,
net 7.65 % 7.54 % 7.12 % Allowance for loan loss to non-performing
loans 38.95 % 43.82 % 33.12 % Delinquency Data:
Delinquencies (1) 30+ days $ 11,140 $ 3,769 $ 11,488 90+ days 0 0 0
Delinquencies as a percentage of loan and lease portfolio (1) 30+
days 1.37 % 0.45 % 1.26 % 90+ days 0.00 % 0.00 % 0.00 %
(1) Excludes non-accrual
loans.
The following table summarizes the number and types of
commercial real estate loans (the largest category of
non-performing loans) that were non-performing as of the end of the
two most recently completed quarters and December 31, 2008.
Property Type
# ofrelationships
PrincipalAmount ofLoan
atDecember31,2009
# ofrelationships
PrincipalAmount ofLoan
atSeptember30,2009
# ofrelationships
PrincipalAmount ofLoan
atDecember31,2008
Residential developments 7 $ 12,030 7 $ 13,995 6
$ 17,680 Single family homes 2 3,088 3 1,615 4 898
Condominiums 0 0 0 0 1 5,440 Hotels 1 4,999 1 4,999 1 4,999
Alternative fuel plants 2 12,834 2 12,789 2 12,492 Shopping
centers/retail 2 1,136 3 2,349 2 1,237 Elderly care facilities 0 0
0 0 3 4,037 Restaurants/bar 4 2,436 4 2,984 0 0 Office building 1
599 0 0 1 169 19 $
37,122 20 $ 38,731 20 $ 46,953
Non-Interest Income and
Expense
Non-interest income was $2.1 million for the fourth quarter of
2009, an increase of $291,000, or 16.3%, from $1.8 million for the
fourth quarter of 2008. Gain on sales of loans increased $207,000
between the periods primarily because of an increase in the
single-family loans that were sold. Other non-interest income
increased $134,000 between the periods due primarily to an increase
in the gains recognized on the sale and subsequent lease back of a
branch facility and an increase in rental income on other real
estate owned. Mortgage servicing fees increased $39,000 because of
an increase in the single-family mortgage loans being serviced
between the periods as more loans were sold with the servicing
rights retained. Fees and service charges decreased $89,000 between
the periods primarily because of a decrease in overdraft fees.
Non-interest expense was $6.6 million for the fourth quarter of
2009, an increase of $88,000, or 1.3%, from $6.5 million for the
fourth quarter of 2008. Deposit insurance costs increased $271,000
due to increased Federal Deposit Insurance Corporation (FDIC)
insurance premium costs. Losses (gains) on real estate owned
increased $88,000 primarily because of the additional reserves
established due to decreases in the estimated value of the real
estate. Compensation expense increased $62,000 primarily due to an
increase in employee benefit costs. Other operating expenses
decreased $135,000 between the periods primarily because of a
decrease in legal and other professional services between the
periods. Data processing costs decreased $114,000 between the
periods primarily because of decreases in third party vendor
charges for internet and other banking services as a result of the
system conversion that occurred in the fourth quarter of 2008.
Occupancy expense decreased $84,000 between the periods primarily
because of a decrease in depreciation expense and non-capitalized
software and equipment purchases. Income tax benefit decreased $2.0
million between the periods primarily because of an increase in
taxable income.
Net Loss Available to Common
Shareholders
The net loss available to common shareholders was $292,000 for
the fourth quarter of 2009, an improvement of $2.3 million, or
88.7%, from the $2.6 million net loss available to common
shareholders in the fourth quarter of 2008. The net loss available
to common shareholders decreased primarily because of the increase
in net income between the periods which was partially offset by a
$404,000 increase in the preferred stock dividend and discount
costs in the fourth quarter of 2009 compared to the same period in
2008. The increased preferred stock dividends and discount costs in
the fourth quarter of 2009 are the result of the preferred shares
being outstanding for the entire quarter compared to a being
outstanding for only a partial quarter in the fourth quarter of
2008.
Return on Assets and
Equity
Return on average assets for the fourth quarter of 2009 was
0.06%, compared to a loss on average assets of 0.88% for the fourth
quarter of 2008. Return on average common equity was 0.59% for the
fourth quarter of 2009, compared to a loss on average common equity
of 11.43% for the same period of 2008. Book value per common share
at December 31, 2009 was $17.94, compared to $21.31 at December 31,
2008.
Annual Results
Net Loss
The net loss was $10.8 million for 2009, an increased loss of
$669,000, from the $10.1 million loss for 2008. The net loss
available to common shareholders was $12.5 million for the year
ended December 31, 2009, an increased loss of $2.3 million, from
the net loss available to common shareholders of $10.2 million for
2008. Diluted loss per common share for the year ended December 31,
2009 was $3.39, an increased loss of $0.61 from the $2.78 diluted
loss per common share for the year ended December 31, 2008.
Net Interest Income
Net interest income was $33.9 million for 2009, an increase of
$187,000, or 0.6%, from $33.7 million for 2008. Interest income was
$57.8 million for 2009, a decrease of $8.7 million, or 13.1%, from
$66.5 million for 2008. Interest income decreased primarily because
of a decrease in the average yields earned on loans and
investments. The decreased average yields were the result of the
400 basis point decrease in the prime interest rate that occurred
during 2008. Decreases in the prime rate generally decrease the
rates on adjustable rate consumer and commercial loans in the
portfolio and on new loans originated. Interest income was also
adversely affected by the decrease in the average net loans
receivable of $39.1 million between the periods. Interest income
was adversely affected by the increase in non-performing loans
between the periods. The average yield earned on interest-earning
assets was 5.68% for 2009, a decrease of 55 basis points from the
6.23% average yield for 2008.
Interest expense was $23.9 million for 2009, a decrease of $8.9
million, or 27.2%, from $32.8 million for 2008. Interest expense
decreased primarily because of lower interest rates paid on money
market and certificates of deposit accounts. The decreased rates
were the result of the 400 basis point decrease in the federal
funds rate that occurred during 2008. Decreases in the federal
funds rate generally have a lagging effect and decrease the rates
banks pay for deposits. Interest expense also decreased because of
a $43.3 million decrease in average interest-bearing liabilities
between the periods. The decrease in average interest-bearing
liabilities is primarily the result of a decrease in the
outstanding brokered certificates of deposits between the periods.
The average interest rate paid on interest-bearing liabilities was
2.49% for 2009, a decrease of 78 basis points from the 3.27% paid
for 2008. Net interest margin (net interest income divided by
average interest earning assets) for 2009 was 3.33%, an increase of
17 basis points, compared to 3.16% for 2008.
Provision for Loan
Losses
The provision for loan losses was $26.7 million for 2009, the
same as for 2008. The provision for loan losses remained elevated
in 2009 primarily because of high loan loss allowances recorded for
specific commercial real estate loans due to decreases in the
estimated value of the underlying collateral supporting the loans.
An additional provision for loan losses of $2.9 million was
recorded on two non-performing residential development loans and a
$3.0 million provision for loan losses was established on two
alternative fuel plants based on updated appraised values during
2009. An analysis of the loan portfolio during the year resulted in
a $2.7 million increase in the loan loss provision for other
risk-rated loans and $1.0 million in additional reserves were
established during the year on two loans to financial institutions
due to the deterioration of their financial condition. The loan
loss provision for 2009 also includes a $6.9 million increase on
two unrelated commercial loans that were charged off after it was
determined that the collateral supporting the loans was inadequate
due to the apparently fraudulent actions of the respective
borrowers. The loan loss provision for 2008 included a $12.0
million provision and related charge off due to apparently
fraudulent activity on a commercial loan. Total non-performing
assets were $77.4 million at December 31, 2009, an increase of $2.6
million, or 3.5%, from $74.8 million at December 31, 2008.
Non-performing loans decreased $3.1 million to $61.1 million and
foreclosed and repossessed assets increased $5.7 million to $16.3
million. The non-performing loan and foreclosed and repossessed
asset activity for the year was as follows:
(Dollars in thousands)
Non-performing
loans Foreclosed and repossessed asset activity
December 31, 2008 $ 64,173 December 31, 2008 $ 10,583
Classified as non-performing 44,632 Transferred from non-performing
loans 17,219 Charge offs (25,031 ) Other foreclosures/repossessions
1,237 Principal payments received (4,322 ) Real estate sold (9,819
) Classified as accruing (1,106 ) Net gain on sale of assets 1,436
Transferred to real estate owned (17,219 ) Write downs
(4,394 ) December 31, 2009 $ 61,127 December 31, 2009
$ 16,262
A reconciliation of the allowance for loan losses for 2009 and
2008 is summarized as follows:
(in thousands)
2009 2008 Balance at January 1, 21,257 $ 12,438 Provision 26,699
26,696 Charge offs: Commercial (9,421 ) (13,784 ) Commercial real
estate (13,548 ) (3,454 ) Consumer (1,980 ) (612 ) Single family
mortgage (82 ) (78 ) Recoveries 886 51
Balance at December 31, $ 23,811 $ 21,257
Non-Interest Income and
Expense
Non-interest income was $8.1 million for 2009, an increase of
$1.0 million, or 13.8%, from $7.1 million for 2008. Gain on sales
of loans increased $1.6 million between the periods because of an
increase in the sales of single family mortgages between the
periods. Mortgage servicing fees increased $87,000 between the
periods due to an increase in the single-family mortgage loans
being serviced. Security gains decreased $474,000 because of
decreased investment sales. Fees and service charges decreased
$132,000 between the periods primarily because of decreased retail
deposit account overdrafts and fees. Other non-interest income
decreased $124,000 between the periods due primarily to a decrease
in the sales of uninsured investment products.
Non-interest expense was $31.7 million for 2009, an increase of
$2.5 million, or 8.4%, from $29.2 million for 2008. Losses on real
estate owned increased $4.1 million between the periods primarily
because the losses recognized on three residential developments
caused by a decrease in their estimated value exceeded the gains
recognized on the sale of two commercial real estate properties.
Deposit insurance premiums increased $1.3 million due to increased
FDIC insurance premium costs. Compensation expense increased
$968,000 between the periods primarily because of additional
staffing in the mortgage, commercial and computer operations areas
and costs associated with the employment agreement of a former
executive officer. Other non-interest expenses increased $919,000
primarily because of an increase in the costs related to other real
estate owned. These increases were offset by a $3.8 million
decrease in goodwill impairment charges between the periods. Data
processing costs decreased $549,000 between the periods primarily
because of decreases in third party vendor charges for internet and
other banking services as a result of the system conversion that
occurred in the fourth quarter of 2008. Occupancy expense decreased
$437,000 primarily because of a decrease in depreciation expense
and non-capitalized software and equipment purchases.
The income tax benefit was $5.6 million for the year ended
December 31, 2009, an increased benefit of $623,000, compared to a
$5.0 million benefit for the year ended December 31, 2008. The
increased income tax benefit was due to an increased taxable loss
and an effective tax rate that increased from 33.0% for 2008 to
34.2% for 2009. The effective tax rate was lower in 2008 primarily
due to the nondeductible goodwill impairment charge that was
recorded in 2008.
Net Loss Available to Common
Shareholders
The net loss available to common shareholders was $12.5 million
for the year ended December 31, 2009, an increased loss of $2.3
million, from the net loss available to common shareholders of
$10.2 million for 2008. The net loss available to common
shareholders increased primarily because of the $1.7 million
increase in the preferred stock dividend and discount costs between
the periods. The increased preferred stock dividend and discount
costs in 2009 are the result of the preferred stock being
outstanding for the entire year compared to only a partial year in
2008 as it was issued on December 23, 2008.
Loss on Assets and
Equity
Loss on average assets for 2009 was 1.00%, compared to 0.91% for
2008. Loss on average common equity was 10.33% for 2009, compared
to 10.61% for 2008.
General Information
HMN Financial, Inc. and Home Federal Savings Bank are
headquartered in Rochester, Minnesota. The Bank operates ten full
service offices in Minnesota located in Albert Lea, Austin, Eagan,
La Crescent, Rochester, Spring Valley and Winona and two full
service offices in Iowa located in Marshalltown and Toledo. Home
Federal Private Banking operates branches in Edina and Rochester,
Minnesota. Home Federal Savings Bank also operates loan origination
offices located in Rochester, Minnesota and Sartell, Minnesota.
Safe Harbor Statement
This press release may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements regarding reducing non-performing
assets, reducing industry loan concentrations, increasing core
retail and commercial deposit relationships, reducing expenses and
generating improved financial results. These statements are often
identified by such forward-looking terminology as “expect,”
“intent,” “look,” “believe,” “anticipate,” “estimate,” “project,”
“seek,” “may,” “will,” “would,” “could,” “should,” “trend,”
“target,” and “goal” or similar statements or variations of such
terms. A number of factors could cause actual results to differ
materially from the Company’s assumptions and expectations. These
include but are not limited to the adequacy and marketability of
real estate securing loans to borrowers, possible legislative and
regulatory changes and adverse economic, business and competitive
developments such as shrinking interest margins; reduced collateral
values; deposit outflows; reduced demand for financial services and
loan products; changes in accounting policies and guidelines, or
monetary and fiscal policies of the federal government or tax laws;
international economic developments, changes in credit or other
risks posed by the Company’s loan and investment portfolios;
technological, computer-related or operational difficulties;
adverse changes in securities markets; results of litigation; the
Company’s use of the proceeds from the sale of securities to the
U.S. Treasury Department or other significant uncertainties.
Additional factors that may cause actual results to differ from the
Company’s assumptions and expectations include those set forth in
the Company’s most recent filings on Form 10-K and Form 10-Q with
the Securities and Exchange Commission. All forward-looking
statements are qualified by, and should be considered in
conjunction with, such cautionary statements.
HMN FINANCIAL, INC. AND SUBSIDIARIES Consolidated Balance
Sheets (unaudited)
December 31, December 31, (dollars in thousands)
2009 2008
Assets Cash and cash
equivalents $ 16,418 15,729 Securities available for sale:
Mortgage-backed and related securities (amortized cost $51,840 and
$76,166) 53,559 77,327 Other marketable securities (amortized cost
$105,723 and $95,445) 106,043 97,818 159,602
175,145 Loans held for sale 2,965 2,548 Loans
receivable, net 799,256 900,889 Accrued interest receivable 4,024
5,568 Real estate, net 16,257 10,558 Federal Home Loan Bank stock,
at cost 7,286 7,286 Mortgage servicing rights, net 1,315 728
Premises and equipment, net 10,766 13,972 Prepaid expenses and
other assets 6,762 4,408 Deferred tax asset, net 11,590
8,649 Total assets $ 1,036,241 1,145,480
Liabilities and Stockholders’ Equity Deposits
$ 796,011 880,505 Federal Home Loan Bank Advances and Federal
Reserve Borrowings 132,500 142,500 Accrued interest payable 2,108
6,307 Customer escrows 1,427 639 Accrued expenses and other
liabilities 4,257 3,316 Total liabilities 936,303
1,033,267 Commitments and contingencies Stockholders’
equity: Serial-preferred stock: ($.01 par value) Authorized 500,000
shares; issued shares 26,000 23,785 23,384 Common stock ($.01 par
value): Authorized 11,000,000; issued shares 9,128,662 91 91
Additional paid-in capital 58,576 60,687 Retained earnings, subject
to certain restrictions 86,115 98,067 Accumulated other
comprehensive income 1,230 2,091 Unearned employee stock ownership
plan shares (3,577 ) (3,771 ) Treasury stock, at cost 4,883,378 and
4,961,032 shares (66,282 ) (68,336 ) Total stockholders’ equity
99,938 112,213 Total liabilities and stockholders’
equity $ 1,036,241 1,145,480
HMN FINANCIAL, INC. AND
SUBSIDIARIES
Consolidated Statements of Income (unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
(dollars in thousands, except per
share data)
2009
2008
2009
2008
Interest income: Loans receivable $ 12,112
14,098
51,876 58,671 Securities available for sale: Mortgage-backed and
related 591 818 2,768 1,615 Other marketable 564 1,134 3,039 5,775
Cash equivalents 0 2 1 198 Other 37 42 87 253
Total interest income 13,304 16,094 57,771
66,512 Interest expense: Deposits 3,703 6,212
17,579 27,157 Federal Home Loan Bank advances and
Federal Reserve borrowings
1,557
1,593
6,289
5,639
Total interest expense 5,260 7,805 23,868
32,796 Net interest income 8,044 8,289 33,903 33,716
Provision for loan losses 3,445 8,216 26,699
26,696 Net interest income after provision for loan losses
4,599 73 7,204 7,020
Non-interest income: Fees and service charges 1,066 1,155 4,137
4,269 Mortgage servicing fees 272 233 1,042 955 Securities gains,
net 0 0 5 479 Gain on sales of loans 415 208 2,273 651 Other 327
193 625 749 Total non-interest income
2,080 1,789 8,082 7,103
Non-interest expense: Compensation and benefits 3,119 3,057 13,432
12,464 Losses (gains) on real estate owned 61 (27 ) 3,873 (187 )
Occupancy 1,013 1,097 4,084 4,521 Deposit insurance 445 174 1,973
678 Data processing 294 408 1,182 1,731 Goodwill impairment charge
0 0 0 3,801 Other 1,690 1,825 7,145 6,226
Total non-interest expense 6,622 6,534 31,689
29,234 Income (loss) before income tax benefit 57
(4,672 ) (16,403 ) (15,111 ) Income tax benefit (92 ) (2,134 )
(5,607 ) (4,984 ) Net income (loss) 149 (2,538 ) (10,796 ) (10,127
) Preferred stock dividends and discount (441 ) (37 ) (1,747 ) (37
)
Net loss available to common
shareholders
$
(292 )
(2,575
)
(12,543 )
(10,164
)
Basic loss per common share $ (0.08 ) (0.70 ) (3.39 ) (2.78 )
Diluted loss per common share $ (0.08 ) (0.70 ) (3.39 ) (2.78 )
HMN FINANCIAL, INC. AND
SUBSIDIARIES
Selected Consolidated Financial
Information
(unaudited)
Three Months Ended
Year Ended
SELECTED FINANCIAL DATA:
December 31,
December 31,
(dollars in thousand, except per
share data)
2009
2008
2009
2008
I. OPERATING DATA: Interest income $ 13,304 16,094
57,771 66,512 Interest expense 5,260 7,805 23,868 32,796 Net
interest income 8,044 8,289 33,903 33,716 II. AVERAGE
BALANCES: Assets (1) 1,027,162 1,150,853 1,074,233 1,112,348 Loans
receivable, net 811,309 898,549 848,696 887,836 Mortgage-backed and
related securities (1) 136,118 180,906 146,484 154,559
Interest-earning assets (1) 972,231 1,101,622 1,017,838 1,068,309
Interest-bearing liabilities 916,802 1,049,854 959,793 1,003,142
Equity (1) 99,761 88,340 104,489 95,460 III. PERFORMANCE
RATIOS: (1) Return (loss) on average assets (annualized) 0.06 %
(0.88 )% (1.00 ) % (0.91 ) % Interest rate spread information:
Average during period 3.15 2.85 3.19 2.96 End of period 3.12 3.11
3.12 3.11 Net interest margin 3.28 2.99 3.33 3.16 Ratio of
operating expense to average total assets (annualized) 2.56 2.26
2.95 2.63
Return (loss) on average common
equity (annualized)
0.59
(11.43
)
(10.33
)
(10.61
)
Efficiency 65.41 64.84 75.48 71.62
December 31,
December 31,
2009 2008 IV. ASSET QUALITY : Total non-performing
assets $ 77,389 74,756 Non-performing assets to total assets 7.47 %
6.53 %
Non-performing loans to total
loans receivable, net
7.65 % 7.12 % Allowance for loan losses $ 23,811 21,257 Allowance
for loan losses to total assets 2.30 % 1.86 %
Allowance for loan losses to total
loans receivable, net
2.98
2.36
Allowance for loan losses to
non-performing loans
38.95 33.12 V. BOOK VALUE PER COMMON SHARE: Book value per
common share 17.94 21.31
Year Ended
Year Ended
Dec 31, 2009
Dec 31, 2008
VI. CAPITAL RATIOS :
Stockholders’ equity to total
assets, at end of period
9.64 % 9.80 %
Average stockholders’ equity to
average assets (1)
9.73
8.58
Ratio of average interest-earning
assets to average interest-bearing liabilities (1)
106.05 106.50
December 31,
December 31,
2009 2008 VII. EMPLOYEE DATA: Number of full time
equivalent employees 212 204
(1) Average balances
were calculated based upon amortized cost without the market value
impact of SFAS 115.
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