HMN Financial, Inc. (HMNF) has reported a 54.50 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $1.68 million, or $0.35 a share in the quarter, compared with $1.09 million, or $0.23 a share for the same period last year.
Revenue during the quarter grew 16.57 percent to $8.86 million from $7.60 million in the previous year period. Net interest income for the quarter rose 10.06 percent over the prior year period to $6.29 million. Non-interest income for the quarter rose 12.03 percent over the last year period to $2.20 million.
HMN Financial, Inc. has made negative provision of $0.37 million for loan losses during the quarter, compared with a positive provision of $0.08 million in the same period last year.
Net interest margin improved 9 basis points to 3.89 percent in the quarter from 3.80 percent in the last year period. Efficiency ratio for the quarter improved to 73.10 percent from 78.10 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
We are pleased to report the continued improvement in both the credit quality of our loan portfolio and net income in the fourth quarter of 2016 when compared to the same period of 2015," said Bradley Krehbiel, President and Chief Executive Officer of HMN. "The increase in net income between the periods is the result of increasing interest income and managing expenses in order to improve our financial results. We will continue to focus our efforts on prudently growing our core deposit and loan balances in order to further enhance the financial performance of our core banking operations."
Assets outpace liabilities growth
Total assets stood at $682.02 million as on Dec. 31, 2016, up 6.04 percent compared with $643.16 million on Dec. 31, 2015. On the other hand, total liabilities stood at $606.10 million as on Dec. 31, 2016, up 5.68 percent from $573.52 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $551.17 million as on Dec. 31, 2016, up 19 percent compared with $463.19million on Dec. 31, 2015. Deposits stood at $592.81 million as on Dec. 31, 2016, up 5.98 percent compared with $559.39 million on Dec. 31, 2015.
Investments stood at $78.48 million as on Dec. 31, 2016, down 29.91 percent or $33.50 million from year-ago. Shareholders equity stood at $75.92 million as on Dec. 31, 2016, up 9.01 percent or $6.27 million from year-ago.
Return on average assets moved up 30 basis points to 0.99 percent in the quarter from 0.69 percent in the last year period. At the same time, return on average equity increased 274 basis points to 8.93 percent in the quarter from 6.19 percent in the last year period.
Nonperforming assets moved down 37.36 percent or $2.33 million to $3.90 million on Dec. 31, 2016 from $6.23 million on Dec. 31, 2015. Meanwhile, nonperforming assets to total assets was 0.57 percent in the quarter, down from 0.97 percent in the last year period.
Equity to assets ratio was 11.13 percent for the quarter, up from 10.83 percent for the previous year quarter. Average equity to average assets ratio was 11.07 percent for the quarter, down from 11.70 percent for the previous year quarter. Book value per share was $16.91 for the quarter, up 8.82 percent or $1.37 compared to $15.54 for the same period last year.
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