Announcement • Oct 10
HMN Financial, Inc.(NasdaqGM:HMNF) dropped from NASDAQ Composite Index HMN Financial, Inc. has been dropped from the NASDAQ Composite Index. Announcement • Jul 25
HMN Financial, Inc. Declares Quarterly Dividend, Payable on September 9, 2024 HMN Financial, Inc. announced that its Board of Directors has declared a quarterly dividend of $0.10 per share of common stock, payable on September 9, 2024 to stockholders of record at the close of business on August 16, 2024. The declaration and amount of any future cash dividends remains subject to the sole discretion of the Board of Directors and will depend upon many factors, including the Company’s results of operations, financial condition, capital requirements, regulatory and contractual restrictions, business strategy and other factors deemed relevant by the Board of Directors. Announcement • May 16
Alerus Financial Corporation (NasdaqCM:ALRS) entered into an agreement to acquire HMN Financial, Inc. (NasdaqGM:HMNF) for approximately $120 million Alerus Financial Corporation (NasdaqCM:ALRS) entered into an agreement to acquire HMN Financial, Inc. (NasdaqGM:HMNF) for approximately $120 million on May 15, 2024. According to the terms of the agreement, stockholders of HMNF will receive 1.25 shares of Alerus common stock for each share of HMNF common stock they own. Under the terms of the agreement, HMNF will merge with and into Alerus. Upon completion of the Merger, one HMNF director will join the Alerus Board of Directors. The transaction has been unanimously approved by the Boards of Directors of both companies. Completion of the Merger is subject to customary closing conditions, including receipt of required regulatory approvals and approval by the stockholders of both Alerus and HMNF. The transaction is expected to close in the fourth quarter of 2024. The transaction is expected to be immediately accretive to Alerus’ estimated earnings before one-time costs, with a tangible book value earn back of approximately 2.2 years (inclusive of interest rate marks), and an internal rate of return in excess of 25%.
Raymond James & Associates, Inc. acted as financial advisor and Barack Ferrazzano Kirschbaum & Nagelberg LLP acted as legal counsel to Alerus on the transaction. D.A. Davidson & Co. acted as financial advisor and Ballard Spahr LLP acted as legal counsel to HMNF. Valuation Update With 7 Day Price Move • May 15
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to US$23.25, the stock trades at a trailing P/E ratio of 17.8x. Average trailing P/E is 10x in the Banks industry in the US. Total returns to shareholders of 16% over the past three years. Upcoming Dividend • May 12
Upcoming dividend of US$0.10 per share Eligible shareholders must have bought the stock before 16 May 2024. Payment date: 07 June 2024. Payout ratio is a comfortable 25% and this is well supported by cash flows. Trailing yield: 1.7%. Lower than top quartile of American dividend payers (4.7%). Lower than average of industry peers (2.9%). Declared Dividend • Apr 28
First quarter dividend increased to US$0.10 Dividend of US$0.10 is 25% higher than last year. Ex-date: 16th May 2024 Payment date: 7th June 2024 Dividend yield will be 1.7%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 15% per year over the past 2 years and payments have been stable during that time. The company's earnings per share (EPS) would need to decline by 73% to shift the payout ratio to a potentially unsustainable range, which is more than the 7.1% EPS decline seen over the last 5 years. Announcement • Apr 25
HMN Financial, Inc. Declares Quarterly Dividend, Payable on June 7, 2024 HMN Financial, Inc. announced that its board of directors has declared a quarterly dividend of $0.10 per share of common stock, payable on June 7, 2024 to stockholders of record at the close of business on May 17, 2024. Reported Earnings • Apr 22
First quarter 2024 earnings released: EPS: US$0.30 (vs US$0.38 in 1Q 2023) First quarter 2024 results: EPS: US$0.30 (down from US$0.38 in 1Q 2023). Revenue: US$9.37m (down 6.3% from 1Q 2023). Net income: US$1.32m (down 19% from 1Q 2023). Profit margin: 14% (down from 16% in 1Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Announcement • Mar 22
HMN Financial, Inc., Annual General Meeting, Apr 23, 2024 HMN Financial, Inc., Annual General Meeting, Apr 23, 2024, at 10:00 Central Standard Time. Agenda: To consider election of three directors to serve until the conclusion of the third succeeding annual meeting of stockholders or until their successors have been duly elected and qualified; an advisory (non-binding) vote to approve the compensation of executives, as disclosed in this proxy statement (a “Say-on-Pay” vote); ratification of the appointment of Baker Tilly US LLP as independent registered public accounting firm for 2024;. Reported Earnings • Mar 20
Full year 2023 earnings released: EPS: US$1.38 (vs US$1.85 in FY 2022) Full year 2023 results: EPS: US$1.38 (down from US$1.85 in FY 2022). Revenue: US$38.3m (down 4.4% from FY 2022). Net income: US$6.01m (down 25% from FY 2022). Profit margin: 16% (down from 20% in FY 2022). Net interest margin (NIM): 2.84% (down from 3.14% in FY 2022). Non-performing loans: 0.44% (up from 0.24% in FY 2022). Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Feb 05
Upcoming dividend of US$0.08 per share at 1.4% yield Eligible shareholders must have bought the stock before 12 February 2024. Payment date: 06 March 2024. Trailing yield: 1.4%. Lower than top quartile of American dividend payers (4.7%). Lower than average of industry peers (3.2%). Declared Dividend • Jan 31
Fourth quarter dividend of US$0.08 announced Shareholders will receive a dividend of US$0.08. Ex-date: 12th February 2024 Payment date: 6th March 2024 Dividend yield will be 1.4%, which is lower than the industry average of 3.1%. Sustainability & Growth The dividend has increased by an average of 15% per year over the past 2 years and payments have been stable during that time. The company's earnings per share (EPS) would need to decline by 76% to shift the payout ratio to a potentially unsustainable range, which is more than the 6.1% EPS decline seen over the last 5 years. New Risk • Jan 27
New major risk - Revenue and earnings growth Earnings have declined by 1.6% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 1.6% per year over the past 5 years. Minor Risk Market cap is less than US$100m (US$96.6m market cap). Reported Earnings • Jan 27
Full year 2023 earnings released: EPS: US$1.38 (vs US$1.85 in FY 2022) Full year 2023 results: EPS: US$1.38 (down from US$1.85 in FY 2022). Revenue: US$38.3m (down 4.4% from FY 2022). Net income: US$6.01m (down 25% from FY 2022). Profit margin: 16% (down from 20% in FY 2022). Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Upcoming Dividend • Nov 08
Upcoming dividend of US$0.08 per share at 1.7% yield Eligible shareholders must have bought the stock before 15 November 2023. Payment date: 07 December 2023. Payout ratio is a comfortable 17% and this is well supported by cash flows. Trailing yield: 1.7%. Lower than top quartile of American dividend payers (5.1%). Lower than average of industry peers (3.8%). Announcement • Oct 26
HMN Financial, Inc. Declares Quarterly Dividend, Payable on December 7, 2023 HMN Financial, Inc. announced that its Board of Directors has declared a quarterly dividend of $0.08 per share of common stock, payable on December 7, 2023 to stockholders of record at the close of business on November 16, 2023. Reported Earnings • Oct 20
Third quarter 2023 earnings released: EPS: US$0.34 (vs US$0.42 in 3Q 2022) Third quarter 2023 results: EPS: US$0.34 (down from US$0.42 in 3Q 2022). Revenue: US$9.67m (down 1.0% from 3Q 2022). Net income: US$1.50m (down 18% from 3Q 2022). Profit margin: 16% (down from 19% in 3Q 2022). Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Upcoming Dividend • Aug 08
Upcoming dividend of US$0.08 per share at 1.5% yield Eligible shareholders must have bought the stock before 15 August 2023. Payment date: 07 September 2023. Payout ratio is a comfortable 15% and this is well supported by cash flows. Trailing yield: 1.5%. Lower than top quartile of American dividend payers (4.7%). Lower than average of industry peers (3.4%). Announcement • Jul 27
HMN Financial, Inc. Declares Quarterly Dividend, Payable on September 7, 2023 HMN Financial, Inc. announced that its Board of Directors has declared a quarterly dividend of $0.08 per share of common stock, payable on September 7, 2023 to stockholders of record at the close of business on August 16, 2023. New Risk • Jul 23
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 3.1% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Short dividend paying track record (1 year of continuous dividend payments). Shareholders have been diluted in the past year (3.1% increase in shares outstanding). Market cap is less than US$100m (US$86.4m market cap). Reported Earnings • Jul 21
Second quarter 2023 earnings released: EPS: US$0.33 (vs US$0.53 in 2Q 2022) Second quarter 2023 results: EPS: US$0.33 (down from US$0.53 in 2Q 2022). Revenue: US$9.45m (down 7.5% from 2Q 2022). Net income: US$1.42m (down 38% from 2Q 2022). Profit margin: 15% (down from 22% in 2Q 2022). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Upcoming Dividend • May 09
Upcoming dividend of US$0.08 per share at 1.3% yield Eligible shareholders must have bought the stock before 16 May 2023. Payment date: 07 June 2023. Payout ratio is a comfortable 13% and this is well supported by cash flows. Trailing yield: 1.3%. Lower than top quartile of American dividend payers (5.1%). Lower than average of industry peers (3.8%). Reported Earnings • Mar 08
Full year 2022 earnings released Full year 2022 results: Revenue: US$40.1m (down 14% from FY 2021). Net income: US$8.05m (down 41% from FY 2021). Profit margin: 20% (down from 29% in FY 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Feb 07
Upcoming dividend of US$0.06 per share at 1.1% yield Eligible shareholders must have bought the stock before 14 February 2023. Payment date: 08 March 2023. Trailing yield: 1.1%. Lower than top quartile of American dividend payers (4.2%). Lower than average of industry peers (5.8%). Announcement • Jan 28
HMN Financial, Inc. Declares Quarterly Dividend, Payable on March 8, 2023 HMN Financial, Inc. announced that its Board of Directors has declared a quarterly dividend of 6 cents per share of common stock payable on March 8, 2023 to stockholders of record at the close of business on February 15, 2023. Reported Earnings • Jan 27
Full year 2022 earnings released: EPS: US$1.85 (vs US$3.03 in FY 2021) Full year 2022 results: EPS: US$1.85 (down from US$3.03 in FY 2021). Revenue: US$40.1m (down 14% from FY 2021). Net income: US$8.05m (down 41% from FY 2021). Profit margin: 20% (down from 29% in FY 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Announcement • Jan 27
HMN Financial, Inc., Annual General Meeting, Apr 25, 2023 HMN Financial, Inc., Annual General Meeting, Apr 25, 2023, at 10:00 Central Daylight. Upcoming Dividend • Nov 07
Upcoming dividend of US$0.06 per share Eligible shareholders must have bought the stock before 14 November 2022. Payment date: 06 December 2022. Trailing yield: 1.0%. Lower than top quartile of American dividend payers (4.4%). Lower than average of industry peers (6.7%). Announcement • Oct 26
HMN Financial, Inc. Announces Dividend, Payable on December 6, 2022 HMN Financial, Inc. announced that its Board of Directors has declared a quarterly dividend of $0.06 per share of common stock, payable on December 6, 2022 to stockholders of record at the close of business on November 15, 2022. Reported Earnings • Oct 22
Third quarter 2022 earnings released: EPS: US$0.42 (vs US$0.82 in 3Q 2021) Third quarter 2022 results: EPS: US$0.42 (down from US$0.82 in 3Q 2021). Revenue: US$9.77m (down 19% from 3Q 2021). Net income: US$1.83m (down 49% from 3Q 2021). Profit margin: 19% (down from 30% in 3Q 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Aug 08
Upcoming dividend of US$0.06 per share Eligible shareholders must have bought the stock before 15 August 2022. Payment date: 07 September 2022. Payout ratio is a comfortable 5.6% and this is well supported by cash flows. Trailing yield: 1.1%. Lower than top quartile of American dividend payers (4.1%). Lower than average of industry peers (5.6%). Announcement • Jul 28
HMN Financial, Inc. Declares a Quarterly Dividend, Payable on September 7, 2022 HMN Financial, Inc. announced that its Board of Directors has declared a quarterly dividend of $0.06 per share of common stock, payable on September 7, 2022 to stockholders of record at the close of business on August 16, 2022. The declaration and amount of any future cash dividends remains subject to the sole discretion of the Board of Directors and will depend upon many factors, including the Company’s results of operations, financial condition, capital requirements, regulatory and contractual restrictions, business strategy and other factors deemed relevant by the Board of Directors. Reported Earnings • Jul 22
Second quarter 2022 earnings released: EPS: US$0.52 (vs US$1.01 in 2Q 2021) Second quarter 2022 results: EPS: US$0.52 (down from US$1.01 in 2Q 2021). Revenue: US$10.2m (down 23% from 2Q 2021). Net income: US$2.29m (down 49% from 2Q 2021). Profit margin: 22% (down from 34% in 2Q 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • May 28
HMN Financial, Inc. Elects Jeffrey W. Bolton as Board Member HMN Financial, Inc. announced upon the recommendation of its governance and nominating committee, increased the size of the board from eight to nine members and elected Jeffrey W. Bolton to fill the resulting vacancy, with a term to expire at the company’s annual meeting of stockholders to be held in 2025. As a non-employee director, Mr. Bolton will participate in the non-employee director compensation arrangements described in the company’s definitive proxy statement filed with the securities and exchange commission on March 21, 2022. On May 24, 2022, the Board appointed Mr. Bolton to serve on the audit committee of the board. Upcoming Dividend • May 09
Upcoming dividend of US$0.06 per share Eligible shareholders must have bought the stock before 16 May 2022. Payment date: 07 June 2022. Payout ratio is a comfortable 2.3% and this is well supported by cash flows. Trailing yield: 1.0%. Lower than top quartile of American dividend payers (4.0%). Lower than average of industry peers (6.2%). Reported Earnings • May 08
First quarter 2022 earnings released: EPS: US$0.34 (vs US$0.75 in 1Q 2021) First quarter 2022 results: EPS: US$0.34 (down from US$0.75 in 1Q 2021). Revenue: US$9.36m (down 17% from 1Q 2021). Net income: US$1.49m (down 56% from 1Q 2021). Profit margin: 16% (down from 30% in 1Q 2021). Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Announcement • Apr 28
HMN Financial, Inc. Declares Quarterly Dividend, Payable on June 7, 2022 HMN Financial, Inc. announced that its Board of Directors has declared a quarterly dividend of $0.06 per share of common stock, payable on June 7, 2022 to stockholders of record at the close of business on May 17, 2022. Reported Earnings • Mar 10
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: US$3.03 (up from US$2.23 in FY 2020). Revenue: US$46.6m (up 13% from FY 2020). Net income: US$13.6m (up 32% from FY 2020). Profit margin: 29% (up from 25% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Feb 08
Inaugural dividend of US$0.06 per share Eligible shareholders must have bought the stock before 15 February 2022. Payment date: 09 March 2022. The company is not currently making a profit and is not cash flow positive. This is the first dividend for HMN Financial since going public. The average dividend yield among industry peers is 3.8%. Reported Earnings • Oct 23
Third quarter 2021 earnings released: EPS US$0.82 (vs US$0.67 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: US$12.0m (up 9.7% from 3Q 2020). Net income: US$3.62m (up 17% from 3Q 2020). Profit margin: 30% (up from 28% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jul 22
Second quarter 2021 earnings released: EPS US$1.01 (vs US$0.58 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: US$13.3m (up 28% from 2Q 2020). Net income: US$4.53m (up 68% from 2Q 2020). Profit margin: 34% (up from 26% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • Jun 28
HMN Financial, Inc.(NasdaqGM:HMNF) dropped from Russell Microcap Growth Index HMN Financial, Inc.(NasdaqGM:HMNF) dropped from Russell Microcap Growth Index Executive Departure • May 02
Independent Director has left the company On the 27th of April, Hugh Smith's tenure as Independent Director ended after 12.0 years in the role. As of December 2020, Hugh personally held 26.23k shares (US$451k worth at the time). Hugh is the only executive to leave the company over the last 12 months. Reported Earnings • Apr 21
First quarter 2021 earnings released: EPS US$0.75 (vs US$0.30 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: US$11.3m (up 26% from 1Q 2020). Net income: US$3.42m (up 147% from 1Q 2020). Profit margin: 30% (up from 16% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Recent Insider Transactions • Mar 18
Senior VP recently sold US$53k worth of stock On the 15th of March, Jon Eberle sold around 3k shares on-market at roughly US$20.29 per share. This was the largest sale by an insider in the last 3 months. This was Jon's only on-market trade for the last 12 months. Reported Earnings • Mar 08
Full year 2020 earnings released The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: US$41.4m (up 8.2% from FY 2019). Net income: US$10.3m (up 32% from FY 2019). Profit margin: 25% (up from 20% in FY 2019). The increase in margin was driven by higher revenue. Net interest margin (NIM): 3.55% (down from 4.04% in FY 2019). Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Feb 24
New 90-day high: US$20.11 The company is up 22% from its price of US$16.50 on 25 November 2020. The American market is up 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Mortgage industry, which is up 7.0% over the same period. Is New 90 Day High Low • Feb 02
New 90-day high: US$18.71 The company is up 29% from its price of US$14.56 on 03 November 2020. The American market is up 16% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Mortgage industry, which is up 9.0% over the same period. Reported Earnings • Jan 30
Full year 2020 earnings released: EPS US$2.23 (vs US$1.69 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: US$41.4m (up 8.2% from FY 2019). Net income: US$10.3m (up 32% from FY 2019). Profit margin: 25% (up from 20% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Announcement • Jan 28
HMN Financial, Inc., Annual General Meeting, Apr 27, 2021 HMN Financial, Inc., Annual General Meeting, Apr 27, 2021, at 10:00 Central Daylight. Is New 90 Day High Low • Jan 06
New 90-day high: US$17.73 The company is up 32% from its price of US$13.42 on 07 October 2020. The American market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Mortgage industry, which is up 5.0% over the same period. Is New 90 Day High Low • Dec 18
New 90-day high: US$17.44 The company is up 32% from its price of US$13.26 on 18 September 2020. The American market is up 15% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Mortgage industry, which is up 9.0% over the same period. Is New 90 Day High Low • Oct 29
New 90-day high: US$14.64 The company is up 5.0% from its price of US$14.00 on 31 July 2020. The American market is up 2.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Mortgage industry, which is down 3.0% over the same period. Reported Earnings • Oct 21
Third quarter earnings released Over the last 12 months the company has reported total profits of US$8.41m, down 5.4% from the prior year. Total revenue was US$39.5m over the last 12 months, up 3.3% from the prior year. Announcement • Oct 17
HMN Financial, Inc. to Report Q3, 2020 Results on Oct 19, 2020 HMN Financial, Inc. announced that they will report Q3, 2020 results at 5:00 PM, Eastern Standard Time on Oct 19, 2020 Is New 90 Day High Low • Oct 06
New 90-day low: US$13.25 The company is down 8.0% from its price of US$14.41 on 08 July 2020. The American market is up 8.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Mortgage industry, which is down 9.0% over the same period. Is New 90 Day High Low • Sep 19
New 90-day low: US$13.26 The company is down 10.0% from its price of US$14.79 on 19 June 2020. The American market is up 9.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Mortgage industry, which is down 29% over the same period.