This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

HMN Financial, Inc. Announces Fourth Quarter Results, Deferral Of Dividends On Preferred Stock And Annual Meeting

HMN Financial, Inc. (NASDAQ:HMNF):

EARNINGS (LOSS) SUMMARY   Three Months Ended   Year Ended
December 31, December 31,
(dollars in thousands, except per share amounts) 2010     2009 2010     2009
(unaudited)   (unaudited) (unaudited)  
Net income (loss) $ (9,932 ) 149 $ (28,978 ) (10,796 )
Net loss available to

common stockholders

(10,381

)

(292

)

(30,762

)

(12,543

)

Diluted loss per common share (2.73 ) (0.08 ) (8.17 ) (3.39 )
Return (loss) on average assets (4.41 )

%

0.06 % (2.98 )

%

(1.00 ) %
Return (loss) on average common equity (49.64 )

%

0.59 % (31.73 )

%

(10.33 ) %
Book value per common share $ 10.51 17.94 $ 10.51 17.94
 

HMN Financial, Inc. (HMN or the Company) (NASDAQ:HMNF), the $881 million holding company for Home Federal Savings Bank (the Bank), today reported a net loss of $9.9 million for the fourth quarter of 2010, a $10.0 million decrease from net income of $0.1 million for the fourth quarter of 2009. Net loss available to common shareholders for the fourth quarter of 2010 was $10.4 million, an increased loss of $10.1 million, from the net loss available to common shareholders of $0.3 million for the fourth quarter of 2009. Diluted loss per common share for the fourth quarter of 2010 was $2.73, an increased loss of $2.65 from the diluted loss per common share of $0.08 for the fourth quarter of 2009. The decrease in income in the fourth quarter of 2010 is due primarily to a $7.1 million increase in the provision for loan losses between the periods. The increased provision is primarily the result of additional reserves established on commercial loans as a result of decreases in the estimated value of the underlying collateral supporting the loans. The net loss was also adversely affected by the $4.4 million impact of establishing an additional deferred tax valuation allowance during the fourth quarter of 2010 due to the tax treatment of the net operating loss incurred during the quarter. Because of the valuation allowance on the deferred tax asset, the Company was not able to record an income tax benefit during the fourth quarter of 2010 related to the pre-tax loss. This is due to the fact that any current income tax benefit that would normally result from a pre-tax loss is offset by additional deferred tax expense due to an increase in the required valuation allowance. Excluding the deferred tax valuation allowance, the adjusted loss was $6.0 million, or ($1.58) per diluted common share, for the fourth quarter of 2010 and the adjusted loss was $14.2 million, or ($3.76) per diluted common share for the year ended December 31, 2010. The following table reconciles our determination of adjusted loss to the net loss available to common shareholders as prepared in accordance with generally accepted accounting principles:

  Three Months Ended   Year Ended
December 31, 2010 December 31, 2010
(dollars in thousands, except per share data) Amount  

Dilutedper share

Amount  

Dilutedper share

Net loss available to common shareholders $ (10,381 ) (2.73 ) $ (30,762 ) (8.17 )
Deferred tax asset valuation allowance 4,364   1.15   16,597   4.41  
Adjusted loss $ (6,017 ) (1.58 ) $ (14,165 ) (3.76 )
 

The Company is providing adjusted loss information, in addition to reported results prepared in accordance with generally accepted accounting principles, in order to present financial information without the non-cash impact of the deferred tax asset valuation reserve recognized during the quarter and year ended December 31, 2010 and required based on cumulative losses over the previous three-year period and other factors.

1 of 10

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs