HMN Financial, Inc.(HMNF) and its subsidiaries hav e released their consolidated financial data for the third quarter of 2023, showcasing robust performance and financial stability. The company reported a net income of $1.5 million and generated $11.5 million in revenue during the three-month period ending September 30, 2023.
Consolidated Balance Sheets
HMN Financial, Inc. displayed strength in its balance sheets with a total asset growth to $1.15 billion as of September 30, 2023, compared to $1.10 billion at the end of 2022. The company's assets include a substantial cash reserve of $46.7 million and securities available for sale, valued at $218.2 million. Loans held for sale and loans receivable, net, contributed significantly to the asset base, reaching $1.9 million and $850.8 million, respectively.
The company's liabilities primarily consist of deposits, totaling $1.04 billion, reflecting the trust customers place in HMN Financial. Accrued interest payable, customer escrows, and accrued expenses and other liabilities amounted to $2.4 million, $4.6 million, and $1.8 million, respectively. This resulted in total liabilities of $1.05 billion.
HMN Financial's stockholders’ equity remained strong at $101.8 million, encompassing common stock, additional paid-in capital, retained earnings, accumulated other comprehensive loss, unearned employee stock ownership plan shares, and treasury stock. This robust equity position is a testament to the company's financial health and stability.
Consolidated Statements of Comprehensive Income (Loss)
For the third quarter of 2023, HMN Financial, Inc. reported a substantial increase in net income, reaching $1.5 million, compared to $1.8 million during the same period in 2022. The company's net interest income amounted to $7.8 million, remaining consistent with the previous year, despite fluctuations in interest rates. HMN Financial also showed remarkable performance in its non-interest income, earning $2.2 million. However, non-interest expenses, including compensation, benefits, and occupancy costs, resulted in a total of $7.3 million.
The provision for credit losses reached $318,000 in Q3 2023, contributing to the company's overall financial stability. HMN Financial continues to demonstrate its commitment to a strong and resilient financial position.
Selected Consolidated Financial Information
Key Financial Data
The selected financial data reveals HMN Financial, Inc.'s operational performance and asset quality. The company reported a strong return on average assets at 0.55% and an impressive return on average common equity of 5.13% for the nine months ended September 30, 2023. The net interest margin remained competitive at 2.93%, and the efficiency ratio was 75.58%, indicating effective management of expenses.
Asset quality remained exceptional, with non-performing assets accounting for only 0.09% of total assets, and the allowance for credit losses represented 1.04% of total assets. The company's book value per common share increased to $22.68, reflecting the growth in shareholder value.
HMN Financial, Inc. continues to maintain strong capital ratios, with stockholders’ equity to total assets at 8.82%, emphasizing the stability and capital adequacy of the company.
HMN Financial, Inc. showcased remarkable financial performance in the third quarter of 2023, demonstrating resilience and stability in its balance sheets, income statements, and key financial metrics. The company's commitment to asset quality and capital adequacy underscores its dedication to serving its customers and shareholders effectively.