HMN Financial Q2 Profit Plunges - Quick Facts

(RTTNews) - HMN Financial (HMNF) said its second-quarter attributable net income plunged to $585 thousand from $2.01 million reported last year. Earnings per common share dropped to $0.13 from $0.44.

The company attributed the decrease to a $2.0 million increase in the provision for loan losses because there were fewer recoveries on previously charged off loans and fewer credit rating upgrades in the second quarter of 2015 compared to the same period in 2014.

A decrease of $1.2 million in the gains on real estate owned also contributed to the decline.

However, these decreases were partially offset by a $1.3 million decrease in income tax expense between the periods due to the decreased income in the second quarter of 2015 compared to the second quarter of 2014.

Net interest income slid to $4.68 million from $4.71 million last year. Total non-interest income rose to $1.87 million from $1.72 million last year.

The provision for loan losses was $0.2 million, compared to $2.2 million credit provision for loan losses for the second quarter of 2014.