(MENAFN- GlobeNewsWire - Nasdaq) Third Quarter Summary
- Net income of $3.1 million, up $1.0 million, compared to $2.1 million in third quarter of 2019
- Diluted earnings per share of $0.67, up $0.22, compared to $0.45 in third quarter of 2019
- Gain on sales of loans of $3.0 million, up $2.2 million from $0.8 million in third quarter of 2019
- Provision for loan losses of $0.8 million, up $1.2 million from ($0.4) million in third quarter of 2019
- Net interest margin of 3.40%, down 57 basis points, compared to 3.97% in third quarter of 2019
Year to Date Summary
- Net income of $7.2 million, up $0.6 million, compared to $6.6 million in first nine months of 2019
- Diluted earnings per share of $1.54, up $0.13, compared to $1.41 in first nine months of 2019
- Gain on sales of loans of $6.5 million, up $4.7 million from $1.8 million in first nine months of 2019
- Provision for loan losses of $1.5 million, up $3.0 million from ($1.5) million in first nine months of 2019
- Net interest margin of 3.57%, down 57 basis points, compared to 4.14% in first nine months of 2019
Net Income Summary
| | | Three Months Ended | | | Nine Months Ended | |
| | | September 30, | | | September 30, | |
| (Dollars in thousands, except per share amounts) | | 2020 | | 2019 | | | 2020 | | 2019 | |
| Net income | $ | 3,101 | | 2,076 | | $ | 7,177 | | 6,557 | |
| Diluted earnings per share | | 0.67 | | 0.45 | | | 1.54 | | 1.41 | |
| Return on average assets (annualized) | | 1.39 | % | 1.11 | % | | 1.15 | % | 1.20 | % |
| Return on average equity (annualized) | | 12.50 | % | 9.10 | % | | 9.98 | % | 9.97 | % |
| Book value per share | $ | 20.91 | | 18.83 | | $ | 20.91 | | 18.83 | |
ROCHESTER, Minn., Oct. 19, 2020 (GLOBE NEWSWIRE) -- HMN Financial, Inc. (HMN or the Company) (Nasdaq: HMNF ), the $898 million holding company for Home Federal Savings Bank (the Bank), today reported net income of $3.1 million for the third quarter of 2020, an increase of $1.0 million, compared to net income of $2.1 million for the third quarter of 2019. Diluted earnings per share for the third quarter of 2020 was $0.67, an increase of $0.22 per share, compared to diluted earnings per share of $0.45 for the third quarter of 2019. The increase in net income was primarily because of a $2.2 million increase in the gain on sales of mortgage loans between the periods. The increase in the gain on sales of mortgage loans was due primarily to the increase in mortgage loan refinance activity in the current period as a result of the lower interest rate environment between the periods. Net interest income increased $0.2 million primarily because of a decrease in interest expense between the periods. These increases in net income were partially offset by a $1.2 million increase in the provision for loan losses between the periods. The provision for loan losses increased primarily because of the changes in the economic environment related to the disruption in business activity as a result of the COVID-19 pandemic. Income tax expense also increased $0.3 million as a result of the increased pre-tax income between the periods.
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