HMN Financial, Inc. Announces Fourth Quarter Results and Declares Dividend

Fourth Quarter Summary

Annual Summary

ROCHESTER, Min., Jan. 25, 2024 (GLOBE NEWSWIRE) -- 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 $1.5 million for the fourth quarter of 2023, a decrease of $0.9 million compared to net income of $2.4 million for the fourth quarter of 2022. Diluted earnings per share for the fourth quarter of 2023 was $0.33, a decrease of $0.23 from the diluted earnings per share of $0.56 for the fourth quarter of 2022. Net income for the quarter was negatively impacted by a $1.7 million decrease in net interest income between the periods primarily because of a decrease in the net interest margin as a result of increased funding costs. This decrease in net income was partially offset by a $0.1 million increase in the gain on sales of loans due to an increase in mortgage loan originations and sales between the periods. Other non-interest income increased $0.1 million primarily because of an increase in the commissions earned on the sale of uninsured investment products between the periods.

President’s Statement
“Maintaining our net interest income continued to be a challenge in the fourth quarter as the rates paid on our deposits and other funding sources increased more quickly than the rates on our interest earning assets,” said Bradley Krehbiel, President and Chief Executive Officer of HMN. “We are, however, encouraged by the stabilization in our deposit balances and interest rates that we began to observe in the fourth quarter. We are optimistic that net interest margin compression will slow in the coming quarters as our deposit costs stabilize and our earning assets reprice to current market rates. We will continue to focus our efforts on profitably growing the Company and improving our net interest income as we move into the new year.”

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