HMN Financial Q4 Profit Surges On Elimination Of Deferred Tax Valuation Reserve

(RTTNews) - HMN Financial ( HMNF) Inc. late Tuesday reported a significant increase in fourth-quarter profit, helped by the elimination of the deferred tax valuation reserve that led to a $14.7 million decrease in income tax expense from the fourth quarter of 2012.

Net income surged to $18.1 million from $1.5 million in the prior year. Net income available to common stockholders jumped to $17.57 million from $1.02 million. Earnings per share climbed to $3.93 from $0.25.

The company attributed the increase to a $14.7 million decrease in income tax expense as a result of eliminating the valuation reserve against the company's deferred tax asset, a $3.0 million decrease in the provision for loan losses, and a $0.5 million increase on the gains recognized on the sale of real estate owned.

Total interest income fell to $5.14 million from $7.04 million, while total non-interest income dropped to $1.63 million from $2.37 million.