HMN Financial, Inc. (HMN or the Company) (Nasdaq:HMNF), the $1.1
billion holding company for Home Federal Savings Bank (the Bank),
today reported net income of $1.6 million for the first quarter of
2023, an increase of $0.1 million compared to net income of $1.5
million for the first quarter of 2022. Diluted earnings
per share for the first quarter of 2023 was $0.37, an increase of
$0.03 from diluted earnings per share of $0.34 for the first
quarter of 2022. The increase in net income between the
periods was primarily because of a $0.8 million increase in net
interest income due to an increase in interest earning assets and
higher yields earned on those assets and a $0.3 million decrease in
the provision for credit losses. These increases in net income were
partially offset by a $0.6 million decrease in the gain on sales of
loans because of a decrease in mortgage loan originations and sales
due primarily to an increase in mortgage interest rates between the
periods. Total non-interest expenses also increased $0.4 million
between the periods primarily because of an increase in
compensation and benefits expenses.
President’s Statement“We are pleased to report
the growth in our loan portfolio and the related growth in our net
interest income during the first quarter despite the slight decline
in overall assets,” said Bradley Krehbiel, President and Chief
Executive Officer of HMN. “Funding asset growth in the current
interest rate environment has become more challenging and future
asset growth in the short term may be limited. Despite these
challenges, we will continue to focus our efforts on expanding our
core customer deposit relationships.”
First Quarter ResultsNet
Interest IncomeNet interest income was $8.1 million for the first
quarter of 2023, an increase of $0.8 million, or 10.7%, compared to
$7.3 million for the first quarter of 2022. Interest income was
$9.9 million for the first quarter of 2023, an increase of $2.3
million, or 31.0%, from $7.6 million for the first quarter of
2022. Interest income increased because of the $54.6
million increase in the average interest-earning assets between the
periods and also because of the increase in the average yield
earned on interest-earning assets between the periods.
The average yield earned on interest-earning assets was 3.80% for
the first quarter of 2023, an increase of 74 basis points from
3.06% for the first quarter of 2022. The increase in the average
yield is primarily related to the increase in market interest rates
as a result of the 4.50% increase in the prime interest rate
between the periods.
Interest expense was $1.9 million for the first
quarter of 2023, an increase of $1.6 million, or 553.7%, compared
to $0.3 million for the first quarter of 2022. Interest expense
increased primarily because of the increase in the average interest
rate paid on interest-bearing liabilities between the periods.
Interest expense also increased because of the $47.6 million
increase in the average interest-bearing liabilities and
non-interest bearing deposits between the periods. The average
interest rate paid on interest-bearing liabilities and non-interest
bearing deposits was 0.77% for the first quarter of 2023, an
increase of 64 basis points from 0.13% for the first quarter of
2022. The increase in the average rate paid is primarily related to
the increase in market interest rates as a result of the 4.50%
increase in the federal funds rate between the periods. Net
interest margin (net interest income divided by average
interest-earning assets) for the first quarter of 2023 was 3.09%,
an increase of 15 basis points, compared to 2.94% for the first
quarter of 2022. The increase in the net interest margin is
primarily because the increase in the average yield earned on
interest-earning assets as a result of the increase in the prime
rate was higher than the increase in the average rate paid on
interest-bearing liabilities and non-interest bearing deposits
between the periods.
A summary of the Company’s net interest margin
for the three-month periods ended March 31, 2023 and 2022 is as
follows:
|
|
For the three-month period ended |
|
|
|
March 31, 2023 |
|
|
March 31, 2022 |
|
(Dollars in thousands) |
|
AverageOutstandingBalance |
|
InterestEarned/Paid |
|
Yield/Rate |
|
|
AverageOutstandingBalance |
|
InterestEarned/Paid |
|
Yield/Rate |
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available for sale |
$ |
268,684 |
|
795 |
|
1.20 |
% |
$ |
295,370 |
|
788 |
|
1.08 |
% |
Loans held for sale |
|
1,216 |
|
18 |
|
6.04 |
|
|
3,967 |
|
34 |
|
3.52 |
|
Single family loans, net |
|
208,127 |
|
1,951 |
|
3.80 |
|
|
170,047 |
|
1,437 |
|
3.43 |
|
Commercial loans, net |
|
522,921 |
|
6,373 |
|
4.94 |
|
|
449,279 |
|
4,809 |
|
4.34 |
|
Consumer loans, net |
|
45,784 |
|
661 |
|
5.85 |
|
|
40,727 |
|
471 |
|
4.69 |
|
Other |
|
10,814 |
|
115 |
|
4.31 |
|
|
43,593 |
|
26 |
|
0.24 |
|
Total interest-earning assets |
|
1,057,546 |
|
9,913 |
|
3.80 |
|
|
1,002,983 |
|
7,565 |
|
3.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking accounts |
|
161,708 |
|
188 |
|
0.47 |
|
|
160,315 |
|
41 |
|
0.10 |
|
Savings accounts |
|
120,741 |
|
26 |
|
0.09 |
|
|
121,033 |
|
18 |
|
0.06 |
|
Money market accounts |
|
258,768 |
|
655 |
|
1.03 |
|
|
250,745 |
|
132 |
|
0.21 |
|
Certificate accounts |
|
136,986 |
|
934 |
|
2.77 |
|
|
84,343 |
|
92 |
|
0.44 |
|
Customer escrows |
|
6,393 |
|
32 |
|
2.00 |
|
|
0 |
|
0 |
|
0.00 |
|
Advances and other borrowings |
|
1,219 |
|
15 |
|
4.86 |
|
|
0 |
|
0 |
|
0.00 |
|
Total interest-bearing liabilities |
|
685,815 |
|
|
|
|
|
|
616,436 |
|
|
|
|
|
Non-interest checking |
|
282,136 |
|
|
|
|
|
|
303,697 |
|
|
|
|
|
Other non-interest bearing liabilities |
|
2,423 |
|
|
|
|
|
|
2,636 |
|
|
|
|
|
Total interest-bearing liabilities and non-interest bearing
deposits |
$ |
970,374 |
|
1,850 |
|
0.77 |
|
$ |
922,769 |
|
283 |
|
0.13 |
|
Net interest income |
|
|
$ |
8,063 |
|
|
|
|
|
$ |
7,282 |
|
|
|
Net interest rate spread |
|
|
|
|
|
3.03 |
% |
|
|
|
|
|
2.93 |
% |
Net interest margin |
|
|
|
|
|
3.09 |
% |
|
|
|
|
|
2.94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Credit LossesThere was a small
recapture in the provision for credit losses in the first quarter
of 2023, a decrease of $0.3 million compared to $0.3 million for
the first quarter of 2022. The provision for credit
losses decreased primarily because of a decrease in the loan growth
that was experienced between the periods. The small recapture in
the provision recorded in the first quarter of 2023 is because of a
decrease in the required collective reserves as a result of
updating our projected losses associated with our historical loss
calculation. This decrease was partially offset by an increase in
the provision related to loan growth.
The allowance for credit losses is measured on a
collective (pool) basis when similar risk characteristics exist.
Loans that do not share risk characteristics are evaluated on an
individual basis. Loans evaluated individually are not also
included in the collective evaluations. The collective reserve
amount is assessed based on size and risk characteristics of the
various portfolio segments, past loss history and other adjustments
determined to have a potential impact on future credit losses. The
collective reserve amount decreased from the January 1, 2023
adoption amount based on projected losses associated with the
quantitative historical loss calculation and this decrease was
partially offset by growth in the loan portfolio. The Company’s
qualitative reserve adjustments did not materially change during
the quarter due to management’s perception that economic conditions
had not materially changed, including those related to the elevated
inflation rate, and enacted and expected increases in the federal
funds rate. Total non-performing assets were $1.9 million at March
31, 2023 and December 31, 2022.
A reconciliation of the Company’s allowance for
credit losses for the first quarters of 2023 and 2022 is summarized
as follows:
|
|
|
|
|
(Dollars in thousands) |
|
2023 |
|
|
2022 |
|
Balance at January
1, |
$ |
10,277 |
|
|
9,279 |
|
Adoption of Accounting
Standard Update (ASU)
2016-13 |
|
1,070 |
|
|
0 |
|
Provision |
|
(32 |
) |
|
296 |
|
Charge offs: |
|
|
|
|
|
|
Consumer |
|
0 |
|
|
(1 |
) |
Recoveries |
|
27 |
|
|
10 |
|
Balance at March
31, |
$ |
11,342 |
|
|
9,584 |
|
Allocated to: |
|
|
|
|
|
|
Collective
allowance |
$ |
11,139 |
|
|
9,142 |
|
Individual
allowance |
|
203 |
|
|
442 |
|
|
$ |
11,342 |
|
|
9,584 |
|
|
|
|
|
|
On January 1, 2023, the Company adopted Accounting Standards
Update (ASU) 2016-13, Financial Instruments-Credit Losses (Topic
326): Measurement of Credit Losses on Financial Instruments. The
transition to this ASU resulted in a cumulative-effect adjustment
to the allowance for loan losses of $1.1 million, an increase in
deferred tax assets of $0.3 million, and a decrease to retained
earnings of $0.8 million as of the adoption date. In addition, a
liability for $0.1 million was established for projected future
losses on unfunded commitments on outstanding lines of credit upon
adoption. The projected liability for unfunded commitments
increased $24,000 during the first quarter of 2023 and the
provision for credit losses was increased to reflect the
change.
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.
|
|
March 31, |
|
|
December 31, |
|
(Dollars in thousands) |
|
2023 |
|
|
2022 |
|
Non-performing loans: |
|
|
|
|
|
|
Single family |
$ |
890 |
|
$ |
908 |
|
Consumer |
|
494 |
|
|
441 |
|
Commercial business |
|
474 |
|
|
529 |
|
Total non-performing assets |
$ |
1,858 |
|
$ |
1,878 |
|
Total as a percentage of total
assets |
|
0.17 |
% |
|
0.17 |
% |
Total as a percentage of total
loans receivable |
|
0.23 |
% |
|
0.24 |
% |
Allowance for credit losses to
non-performing loans |
|
610.45 |
% |
|
547.24 |
% |
|
|
|
|
|
|
|
Delinquency data: |
|
|
|
|
|
|
Delinquencies(1) |
|
|
|
|
|
|
30+ days |
$ |
271 |
|
$ |
1,405 |
|
90+ days |
|
0 |
|
|
0 |
|
Delinquencies as a percentage
of loan portfolio(1) |
|
|
|
|
|
|
30+ days |
|
0.03 |
% |
|
0.18 |
% |
90+ days |
|
0.00 |
% |
|
0.00 |
% |
(1)Excludes non-accrual loans. |
|
|
|
|
|
|
Non-Interest Income and ExpenseNon-interest
income was $1.9 million for the first quarter of 2023, a decrease
of $0.5 million, or 18.8%, from $2.4 million for the first quarter
of 2022. Gain on sales of loans decreased $0.6 million between the
periods because of a decrease in single family loan originations
and sales due primarily to an increase in mortgage interest rates
between the periods. This decrease was partially offset by a $0.1
million increase in other non-interest income due primarily to an
increase in the gains recognized on equity securities between the
periods. Fees and service charges increased slightly between the
periods due primarily to an increase in the commitment fees earned
on unused commercial lines of credit. Loan servicing fees increased
slightly between the periods due to an increase in the aggregate
balances of commercial loans that were being serviced for
others.
Non-interest expense was $7.7 million for the
first quarter of 2023, an increase of $0.4 million, or 6.1%, from
$7.3 million for the first quarter of 2022. Compensation and
benefits expense increased $0.5 million primarily because of annual
salary increases and also because of a decrease in the direct loan
origination compensation costs that were deferred as a result of
the reduced mortgage loan production between the periods. Data
processing expenses increased $0.2 million between the periods
primarily because of the change to an outsourced data processing
relationship at the end of the first quarter of 2022. Other
non-interest expense increased $0.2 million between the periods
primarily because of an increase in advertising costs and an
increase in FDIC insurance costs between the periods due to an
increase in rates. These increases in non-interest expense were
partially offset by a $0.3 million decrease in professional
services expense between the periods primarily because of a
decrease in legal expenses relating to a bankruptcy litigation
claim that was settled during the first quarter of 2022. Occupancy
and equipment expense decreased $0.1 million due primarily to a
decrease in noncapitalized software costs between the periods.
Income tax expense was $0.7 million for the
first quarter of 2023, an increase of $0.1 million from $0.6
million for the first quarter of 2022. The increase in income tax
expense between the periods is primarily the result of an increase
in pre-tax income.
Return on Assets and EquityReturn on average
assets (annualized) for the first quarter of 2023 was 0.61.%,
compared to 0.58% for the first quarter of 2022. Return on average
equity (annualized) was 5.64% for the first quarter of 2023,
compared to 5.36% for the same period in 2022. Book value per
common share at March 31, 2023 was $22.35, compared to $22.16 at
March 31, 2022.
General InformationHMN Financial, Inc. and the
Bank are headquartered in Rochester, Minnesota. Home Federal
Savings Bank operates twelve full service offices in Minnesota
located in Albert Lea, Austin, Eagan, Kasson, La Crescent,
Owatonna, Rochester (4), Spring Valley and Winona, one full service
office in Marshalltown, Iowa, and one full service office in
Pewaukee, Wisconsin. The Bank also operates two loan origination
offices located in Sartell, Minnesota and La Crosse, Wisconsin.
Safe Harbor Statement This press
release may contain forward-looking statements within the meaning
of the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. These statements are often identified by such
forward-looking terminology as “anticipate,” “continue,” “could,”
“expect,” “future,” “may,” “project” and “will,” or similar
statements or variations of such terms and include, but are not
limited to, those relating to: enacted and expected changes to the
federal funds rate; the anticipated impacts of inflation and rising
interest rates on the general economy, the Bank’s clients, and the
allowance for credit losses; anticipated future levels of the
provision for credit losses; and the payment of dividends by
HMN.
A number of factors, many of which may be
amplified by the deterioration in economic conditions, 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 and other collateral securing
loans to borrowers; federal and state regulation and enforcement;
possible legislative and regulatory changes, including changes to
regulatory capital rules; the ability of the Bank to comply with
other applicable regulatory capital requirements; enforcement
activity of the Office of the Comptroller of the Currency and the
Federal Reserve Bank of Minneapolis in the event of non-compliance
with any applicable regulatory standard or requirement; adverse
economic, business and competitive developments such as shrinking
interest margins, reduced collateral values, deposit outflows,
changes in credit or other risks posed by the Company’s loan and
investment portfolios; changes in costs associated with traditional
and alternate funding sources, including changes in collateral
advance rates and policies of the Federal Home Loan Bank and the
Federal Reserve Bank; technological, computer-related or
operational difficulties including those from any third party
cyberattack; reduced demand for financial services and loan
products; adverse developments affecting the financial services
industry, such as recent bank failures or concerns involving
liquidity; changes in accounting policies and guidelines, or
monetary and fiscal policies of the federal government or tax laws;
domestic and international economic developments; the Company’s
access to and adverse changes in securities markets; the market for
credit related assets; the future operating results, financial
condition, cash flow requirements and capital spending priorities
of the Company and the Bank; the availability of internal and, as
required, external sources of funding; the Company’s ability to
attract and retain employees; 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 “Risk Factors” section of the Company’s Annual Report on Form
10-K for the year ended December 31, 2022. All forward-looking
statements are qualified by, and should be considered in
conjunction with, such cautionary statements. All statements in
this press release, including forward-looking statements, speak
only as of the date they are made, and the Company undertakes no
duty to update any of the forward-looking statements after the date
of this press release.
(Three pages of selected consolidated financial
information are included with this release.)
HMN FINANCIAL, INC. AND SUBSIDIARIES |
Consolidated Balance Sheets |
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
(Dollars in thousands) |
|
2023 |
|
|
2022 |
|
|
|
|
(unaudited) |
|
|
|
Assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
10,120 |
|
|
36,259 |
|
|
Securities available for
sale: |
|
|
|
|
|
Mortgage-backed and related securities (amortized cost $207,450 and
$216,621) |
|
185,836 |
|
|
192,688 |
|
|
Other marketable securities (amortized cost $55,698 and
$55,698) |
|
53,857 |
|
|
53,331 |
|
|
Total securities available for sale |
|
239,693 |
|
|
246,019 |
|
|
|
|
|
|
|
|
Loans held for sale |
|
567 |
|
|
1,314 |
|
|
Loans receivable, net |
|
785,982 |
|
|
777,078 |
|
|
Accrued interest
receivable |
|
3,199 |
|
|
3,003 |
|
|
Mortgage servicing rights,
net |
|
2,878 |
|
|
2,986 |
|
|
Premises and equipment,
net |
|
16,467 |
|
|
16,492 |
|
|
Goodwill |
|
802 |
|
|
802 |
|
|
Prepaid expenses and other
assets |
|
3,800 |
|
|
3,902 |
|
|
Deferred tax asset, net |
|
8,074 |
|
|
8,347 |
|
|
Total assets |
$ |
1,071,582 |
|
|
1,096,202 |
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
Deposits |
$ |
958,318 |
|
|
981,926 |
|
|
Federal Home Loan Bank
advances and Federal Reserve borrowings |
|
2,300 |
|
|
0 |
|
|
Accrued interest payable |
|
1,049 |
|
|
298 |
|
|
Customer escrows |
|
8,463 |
|
|
10,122 |
|
|
Accrued expenses and other
liabilities |
|
1,230 |
|
|
6,520 |
|
|
Total liabilities |
|
971,360 |
|
|
998,866 |
|
|
Commitments and
contingencies |
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
Serial-preferred stock ($.01 par value): |
|
|
|
|
|
authorized 500,000 shares; issued 0 |
|
0 |
|
|
0 |
|
|
Common stock ($.01 par value): authorized 16,000,000 shares; issued
9,128,662 |
|
91 |
|
|
91 |
|
|
outstanding 4,484,614 and 4,480,976 |
|
|
|
|
|
|
|
Additional paid-in
capital |
|
40,975 |
|
|
41,013 |
|
|
Retained earnings, subject to
certain restrictions |
|
138,952 |
|
|
138,409 |
|
|
Accumulated other
comprehensive loss |
|
(17,515 |
) |
|
(19,761 |
) |
|
Unearned employee stock
ownership plan shares |
|
(1,014 |
) |
|
(1,063 |
) |
|
Treasury stock, at cost
4,644,048 and 4,647,686 shares |
|
(61,267 |
) |
|
(61,353 |
) |
|
Total stockholders’ equity |
|
100,222 |
|
|
97,336 |
|
|
Total liabilities and
stockholders’ equity |
$ |
1,071,582 |
|
|
1,096,202 |
|
|
|
|
|
|
|
|
HMN FINANCIAL, INC. AND SUBSIDIARIES |
Consolidated Statements of Comprehensive Income
(Loss) |
(unaudited) |
|
|
|
Three Months EndedMarch 31, |
(Dollars in thousands, except per share data) |
2023 |
|
|
2022 |
|
Interest income: |
|
|
|
|
|
|
|
Loans receivable |
$ |
9,003 |
|
|
|
6,751 |
|
Securities available for sale: |
|
|
|
|
|
|
|
Mortgage-backed and related |
|
652 |
|
|
|
727 |
|
Other marketable |
|
143 |
|
|
|
61 |
|
Other |
|
115 |
|
|
|
26 |
|
Total interest income |
|
9,913 |
|
|
|
7,565 |
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
Deposits |
|
1,803 |
|
|
|
283 |
|
Customer escrows |
|
32 |
|
|
|
0 |
|
Advances and other borrowings |
|
15 |
|
|
|
0 |
|
Total interest expense |
|
1,850 |
|
|
|
283 |
|
|
|
|
|
|
|
|
|
Net interest income |
|
8,063 |
|
|
|
7,282 |
|
|
|
|
|
|
|
|
|
Provision for credit
losses(1) |
|
(8 |
) |
|
|
296 |
|
Net interest income after provision for loan losses |
|
8,071 |
|
|
|
6,986 |
|
|
|
|
|
|
|
|
|
Non-interest income: |
|
|
|
|
|
|
|
Fees and service charges |
|
807 |
|
|
|
766 |
|
Loan servicing fees |
|
400 |
|
|
|
386 |
|
Gain on sales of loans |
|
295 |
|
|
|
868 |
|
Other |
|
426 |
|
|
|
355 |
|
Total non-interest income |
|
1,928 |
|
|
|
2,375 |
|
|
|
|
|
|
|
|
|
Non-interest expense: |
|
|
|
|
|
|
|
Compensation and benefits |
|
4,805 |
|
|
|
4,288 |
|
Occupancy and equipment |
|
950 |
|
|
|
1,050 |
|
Data processing |
|
505 |
|
|
|
354 |
|
Professional services |
|
237 |
|
|
|
529 |
|
Other |
|
1,196 |
|
|
|
1,031 |
|
Total non-interest expense |
|
7,693 |
|
|
|
7,252 |
|
Income before income tax expense |
|
2,306 |
|
|
|
2,109 |
|
Income tax expense |
|
672 |
|
|
|
622 |
|
Net income |
|
1,634 |
|
|
|
1,487 |
|
Other comprehensive income
(loss), net of tax |
|
2,246 |
|
|
|
(10,018 |
) |
Comprehensive income (loss)
available to common shareholders |
$ |
3,880 |
|
|
|
(8,531 |
) |
Basic earnings per share |
$ |
0.38 |
|
|
|
0.34 |
|
Diluted earnings per
share |
$ |
0.37 |
|
|
|
0.34 |
|
|
|
|
|
|
|
|
|
(1) The Company adopted ASU 2016-13 as of January 1, 2023. The
2022 amount presented is calculated under the prior accounting
standard.
HMN FINANCIAL, INC. AND SUBSIDIARIES |
Selected Consolidated Financial Information |
(unaudited) |
SELECTED FINANCIAL DATA: |
|
Three Months EndedMarch 31, |
|
|
|
(Dollars in thousands, except per share data) |
|
2023 |
|
2022 |
|
|
|
I. OPERATING DATA: |
|
|
|
|
|
|
|
Interest income |
$ |
9,913 |
|
7,565 |
|
|
|
Interest expense |
|
1,850 |
|
283 |
|
|
|
Net interest income |
|
8,063 |
|
7,282 |
|
|
|
|
|
|
|
|
|
|
|
II. AVERAGE
BALANCES: |
|
|
|
|
|
|
|
Assets(1) |
|
1,094,161 |
|
1,040,712 |
|
|
|
Loans receivable, net |
|
776,832 |
|
660,053 |
|
|
|
Securities available for sale(1) |
|
268,684 |
|
295,370 |
|
|
|
Interest-earning assets(1) |
|
1,057,546 |
|
1,002,983 |
|
|
|
Interest-bearing liabilities and non-interest bearing deposits |
|
970,374 |
|
922,769 |
|
|
|
Equity(1) |
|
117,467 |
|
112,597 |
|
|
|
|
|
|
|
|
|
|
|
III. PERFORMANCE
RATIOS:(1) |
|
|
|
|
|
|
|
Return on average assets (annualized) |
|
0.61 |
% |
0.58 |
% |
|
|
Interest rate spread information: |
|
|
|
|
|
|
|
Average during period |
|
3.03 |
|
2.93 |
|
|
|
End of period |
|
2.90 |
|
3.00 |
|
|
|
Net interest margin |
|
3.09 |
|
2.94 |
|
|
|
Ratio of operating expense to average total assets
(annualized) |
|
2.85 |
|
2.83 |
|
|
|
Return on average common equity (annualized) |
|
5.64 |
|
5.36 |
|
|
|
Efficiency |
|
77.00 |
|
75.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
|
2023 |
|
2022 |
|
2022 |
|
IV. EMPLOYEE DATA: |
|
|
|
|
|
|
|
Number of full time equivalent employees |
|
165 |
|
165 |
|
168 |
|
|
|
|
|
|
|
|
|
V. ASSET
QUALITY: |
|
|
|
|
|
|
|
Total non-performing assets |
$ |
1,858 |
|
1,878 |
|
4,826 |
|
Non-performing assets to total assets |
|
0.17 |
% |
0.17 |
% |
0.47 |
% |
Non-performing loans to total loans receivable |
|
0.23 |
|
0.24 |
|
0.66 |
|
Allowance for credit losses(2) |
$ |
11,342 |
|
10,277 |
|
9,584 |
|
Allowance for credit losses to total assets(2) |
|
1.06 |
% |
0.94 |
% |
0.93 |
% |
Allowance for credit losses to total loans receivable(2) |
|
1.42 |
|
1.30 |
|
1.39 |
|
Allowance for credit losses to non-performing loans(2) |
|
610.45 |
|
547.24 |
|
211.31 |
|
|
|
|
|
|
|
|
|
VI. BOOK VALUE PER
COMMON SHARE: |
|
|
|
|
|
|
|
Book value per common share |
$ |
22.35 |
|
21.72 |
|
22.16 |
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedMar 31, 2023 |
|
Year EndedDec 31, 2022 |
|
Three Months EndedMar 31, 2022 |
|
VII. CAPITAL RATIOS: |
|
|
|
|
|
|
|
Stockholders’ equity to total assets, at end of period |
|
9.35 |
% |
8.88 |
% |
9.77 |
% |
Average stockholders’ equity to average assets(1) |
|
10.74 |
|
10.73 |
|
10.82 |
|
Ratio of average interest-earning assets to average
interest-bearing liabilities and non-interest bearing
deposits(1) |
|
108.98 |
|
108.65 |
|
108.69 |
|
Home Federal Savings Bank regulatory capital ratios: |
|
|
|
|
|
|
|
Common equity tier 1 capital ratio |
|
11.59 |
|
11.48 |
|
12.76 |
|
Tier 1 capital leverage ratio |
|
9.20 |
|
9.14 |
|
9.55 |
|
Tier 1 capital ratio |
|
11.59 |
|
11.49 |
|
12.76 |
|
Risk-based capital |
|
12.84 |
|
12.65 |
|
14.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Average balances were calculated based upon
amortized cost without the market value impact of ASC
320.(2) The Company adopted ASU 2016-13 as of
January 1, 2023. The 2022 amounts presented are calculated under
the prior accounting standard.
CONTACT: Bradley
Krehbiel,Chief Executive Officer,
PresidentHMN Financial, Inc. (507)
252-7169
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