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HMN Financial

Nasdaq:HMNF
Snowflake Description

Flawless balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HMNF
Nasdaq
$97M
Market Cap
  1. Home
  2. US
  3. Banks
Company description

HMN Financial, Inc. operates as a bank holding company for Home Federal Savings Bank that provides retail banking products and services. The last earnings update was 77 days ago. More info.


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HMNF Share Price and Events
Price Volatility
HMNF
Industry
5yr Volatility vs Market
Related Companies

HMNF Value

 Is HMN Financial undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of HMN Financial to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for HMN Financial.

NasdaqGM:HMNF Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $18.04 * 6.8%
$1.23
Book Value of Equity per Share Median Book Value from the past 5 years. $18.04
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGM:HMNF
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Mortgage Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.845 (1 + (1- 21%) (0%))
0.904
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.9
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (0.904 * 7.05%)
9.33%

Discounted Cash Flow Calculation for NasdaqGM:HMNF using Excess Returns Model Model

The calculations below outline how an intrinsic value for HMN Financial is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGM:HMNF Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (6.8% – 9.33%) * $18.04)
$-0.46
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-0.46 / (9.33% - 2.95%)
$-7.15
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $18.04 + $-7.15
$10.89
NasdaqGM:HMNF Discount to Share Price
Calculation Result
Value per share (USD) From above. $10.89
Current discount Discount to share price of $20.80
= -1 x ($20.80 - $10.89) / $10.89
-91%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of HMN Financial is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for HMN Financial's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are HMN Financial's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:HMNF PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-30) in USD $1.26
NasdaqGM:HMNF Share Price ** NasdaqGM (2018-10-19) in USD $20.8
United States of America Mortgage Industry PE Ratio Median Figure of 130 Publicly-Listed Mortgage Companies 18.81x
United States of America Market PE Ratio Median Figure of 2,940 Publicly-Listed Companies 19.17x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of HMN Financial.

NasdaqGM:HMNF PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:HMNF Share Price ÷ EPS (both in USD)

= 20.8 ÷ 1.26

16.53x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HMN Financial is good value based on earnings compared to the US Mortgage industry average.
  • HMN Financial is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does HMN Financial's expected growth come at a high price?
Raw Data
NasdaqGM:HMNF PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 16.53x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
4.8%per year
United States of America Mortgage Industry PEG Ratio Median Figure of 51 Publicly-Listed Mortgage Companies 1.16x
United States of America Market PEG Ratio Median Figure of 2,060 Publicly-Listed Companies 1.28x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for HMN Financial, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on HMN Financial's assets?
Raw Data
NasdaqGM:HMNF PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-30) in USD $19.07
NasdaqGM:HMNF Share Price * NasdaqGM (2018-10-19) in USD $20.8
United States of America Mortgage Industry PB Ratio Median Figure of 140 Publicly-Listed Mortgage Companies 1.2x
United States of America Market PB Ratio Median Figure of 4,942 Publicly-Listed Companies 1.93x
NasdaqGM:HMNF PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:HMNF Share Price ÷ Book Value per Share (both in USD)

= 20.8 ÷ 19.07

1.09x

* Primary Listing of HMN Financial.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HMN Financial is good value based on assets compared to the US Mortgage industry average.
X
Value checks
We assess HMN Financial's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Mortgage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Mortgage industry average (and greater than 0)? (1 check)
  5. HMN Financial has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

HMNF Future Performance

 How is HMN Financial expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover HMN Financial, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is HMN Financial expected to grow at an attractive rate?
  • HMN Financial's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • HMN Financial's earnings growth is positive but not above the United States of America market average.
  • Unable to compare HMN Financial's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:HMNF Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGM:HMNF Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 4.8%
United States of America Mortgage Industry Earnings Growth Rate Market Cap Weighted Average 11%
United States of America Mortgage Industry Revenue Growth Rate Market Cap Weighted Average 7.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 16.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGM:HMNF Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:HMNF Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-06-30 35 17 5
2018-03-31 34 17 5
2017-12-31 34 17 4
2017-09-30 35 20 6
2017-06-30 34 21 5
2017-03-31 34 25 6
2016-12-31 35 26 6
2016-09-30 33 19 6
2016-06-30 32 23 5
2016-03-31 30 15 4
2015-12-31 28 11 3
2015-09-30 29 10 3

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • HMN Financial's earnings are expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if HMN Financial is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGM:HMNF Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from HMN Financial Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:HMNF Past Financials Data
Date (Data in USD Millions) EPS *
2018-06-30 1.26
2018-03-31 1.10
2017-12-31 1.04
2017-09-30 1.35
2017-06-30 1.27
2017-03-31 1.38
2016-12-31 1.52
2016-09-30 1.38
2016-06-30 1.24
2016-03-31 1.03
2015-12-31 0.69
2015-09-30 0.77

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if HMN Financial will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess HMN Financial's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
HMN Financial has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

HMNF Past Performance

  How has HMN Financial performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare HMN Financial's growth in the last year to its industry (Mortgage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • HMN Financial's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • HMN Financial's 1-year earnings growth exceeds its 5-year average (0.1% vs -30%)
  • HMN Financial's earnings growth has not exceeded the US Mortgage industry average in the past year (0.1% vs 11.8%).
Earnings and Revenue History
HMN Financial's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from HMN Financial Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:HMNF Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-30 34.76 5.34 21.30
2018-03-31 34.25 4.63 21.40
2017-12-31 34.06 4.40 21.47
2017-09-30 34.69 5.70 21.75
2017-06-30 34.06 5.34 21.78
2017-03-31 34.37 5.79 21.55
2016-12-31 34.60 6.35 21.22
2016-09-30 33.34 5.76 20.76
2016-06-30 32.01 5.16 20.25
2016-03-31 30.25 4.27 20.02
2015-12-31 27.76 2.85 19.58
2015-09-30 28.82 3.14 19.26
2015-06-30 29.56 3.50 18.83
2015-03-31 31.45 4.92 18.20
2014-12-31 33.68 5.67 19.25
2014-09-30 34.45 21.86 17.86
2014-06-30 37.91 26.19 17.75
2014-03-31 36.47 25.44 17.51
2013-12-31 34.89 24.60 17.31
2013-09-30 32.81 8.04 16.80
2013-06-30 28.31 2.70 16.68
2013-03-31 27.88 1.38 16.91
2012-12-31 29.57 3.46 17.24
2012-09-30 23.47 -5.64 17.62
2012-06-30 20.84 -8.32 18.06
2012-03-31 19.21 -11.00 18.39
2011-12-31 18.00 -13.38 18.52

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • HMN Financial has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • HMN Financial used its assets more efficiently than the US Mortgage industry average last year based on Return on Assets.
  • HMN Financial has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess HMN Financial's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Mortgage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
HMN Financial has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

HMNF Health

 How is HMN Financial's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of HMN Financial's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from HMN Financial Company Filings, last reported 3 months ago.

NasdaqGM:HMNF Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-30 81.83 0.00 31.71
2018-03-31 82.06 0.00 26.58
2017-12-31 80.82 0.00 37.56
2017-09-30 80.63 0.00 30.60
2017-06-30 78.72 7.00 31.89
2017-03-31 77.40 7.00 12.49
2016-12-31 75.92 7.00 27.56
2016-09-30 74.83 9.00 34.59
2016-06-30 73.34 9.00 18.88
2016-03-31 71.69 9.00 13.77
2015-12-31 69.65 9.00 39.78
2015-09-30 68.71 10.00 10.36
2015-06-30 67.49 10.00 39.56
2015-03-31 66.78 10.00 22.94
2014-12-31 76.01 0.00 46.63
2014-09-30 80.61 0.00 57.18
2014-06-30 79.38 0.00 81.20
2014-03-31 87.23 0.00 100.02
2013-12-31 85.68 0.00 120.69
2013-09-30 67.38 0.00 57.65
2013-06-30 61.16 0.00 29.93
2013-03-31 61.05 70.00 73.00
2012-12-31 60.83 70.00 83.66
2012-09-30 59.85 70.00 76.40
2012-06-30 59.53 70.00 65.62
2012-03-31 59.47 70.00 45.98
2011-12-31 57.06 70.00 67.84
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • HMN Financial has an acceptable proportion of non-loan assets held.
  • HMN Financial's liabilities are made up of primarily low risk sources of funding.
  • Loans at HMN Financial are broadly funded by customer deposits.
  • HMN Financial's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • HMN Financial has a sufficient allowance for bad loans.
  • HMN Financial has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess HMN Financial's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. HMN Financial has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

HMNF Dividends

 What is HMN Financial's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from HMN Financial dividends.
If you bought $2,000 of HMN Financial shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate HMN Financial's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate HMN Financial's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGM:HMNF Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Mortgage Industry Average Dividend Yield Market Cap Weighted Average of 96 Stocks 3.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1972 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGM:HMNF Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2010-08-02 0.000 0.000
2010-07-23 0.000 0.000
2010-05-05 0.000 0.000
2010-04-22 0.000 0.000
2010-03-04 0.000 0.000
2010-01-26 0.000 0.000
2009-11-03 0.000 0.000
2009-10-21 0.000 0.000
2009-08-03 0.000 0.000
2009-07-22 0.000 0.000
2009-05-04 0.000 0.000
2009-04-22 0.000 0.000
2008-10-21 0.000 0.000
2008-10-20 1.000 10.034

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as HMN Financial has not reported any payouts.
  • Unable to verify if HMN Financial's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of HMN Financial's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as HMN Financial has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess HMN Financial's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can HMN Financial afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. HMN Financial has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

HMNF Management

 What is the CEO of HMN Financial's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Brad Krehbiel, image provided by Google.
Brad Krehbiel
COMPENSATION $424,756
AGE 59
TENURE AS CEO 6.5 years
CEO Bio

Mr. Bradley C. Krehbiel, also known as Brad, has been the Chief Executive Officer at HMN Financial, Inc. since April 2012 and has been its President since April 2010. Mr. Krehbiel has been President of Home Federal Savings Bank, a subsidiary of HMN Financial, Inc. since January 2009 and has been Chief Executive Officer since 2012. He served as an Executive Vice President of Home Federal Savings Bank from April 2004 to January 2009. He joined Home Federal Savings Bank as Vice President of Business Banking in 1998. He held several positions in the financial services industry, including six years as a private banking consultant. He has been a Director of HMN Financial, Inc. since November 2009 and Home Federal Savings Bank since 2009. Mr. Krehbiel received a Bachelor of Science degree from Minnesota State Mankato.

CEO Compensation
  • Brad's compensation has been consistent with company performance over the past year.
  • Brad's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the HMN Financial management team in years:

8.7
Average Tenure
54
Average Age
  • The average tenure for the HMN Financial management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Brad Krehbiel

TITLE
President
COMPENSATION
$425K
AGE
59
TENURE
6.5 yrs

Jon Eberle

TITLE
Senior VP
COMPENSATION
$297K
AGE
52
TENURE
15 yrs

Larry McGraw

TITLE
Executive VP & COO of Home Federal Savings Bank
COMPENSATION
$296K
AGE
54
TENURE
8.7 yrs

Cindy Hamlin

TITLE
Corporate Secretary
Board of Directors Tenure

Average tenure and age of the HMN Financial board of directors in years:

7.5
Average Tenure
64
Average Age
  • The tenure for the HMN Financial board of directors is about average.
Board of Directors

Hugh Smith

TITLE
Chairman of the Board
COMPENSATION
$53K
AGE
78
TENURE
7.5 yrs

Brad Krehbiel

TITLE
President
COMPENSATION
$425K
AGE
59
TENURE
8.9 yrs

Bernie Nigon

TITLE
Director
COMPENSATION
$36K
AGE
69
TENURE
7.5 yrs

Allen Berning

TITLE
Director
COMPENSATION
$29K
AGE
63
TENURE
7.5 yrs

Wendy Shannon

TITLE
Director
COMPENSATION
$35K
AGE
64
TENURE
5.5 yrs

Mark Utz

TITLE
Director
COMPENSATION
$26K
AGE
57
TENURE
6.8 yrs

Mike Bue

TITLE
Director
COMPENSATION
$31K
AGE
72
TENURE
2.5 yrs

Hans Zietlow

TITLE
Director
COMPENSATION
$26K
AGE
57
TENURE
2.5 yrs

Roger Weise

TITLE
Director Emeritus
COMPENSATION
$103K
AGE
83
TENURE
14.5 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by HMN Financial insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Start End Shares Value (USD)
07. Sep 18 Buy Wendy Shannon Individual 06. Sep 18 06. Sep 18 200 $4,140.00
16. Feb 18 Sell Tontine Capital Management LLC Company 06. Feb 18 08. Feb 18 -129,131 $-2,402,923.50
03. Nov 17 Buy Wendy Shannon Individual 02. Nov 17 02. Nov 17 200 $3,706.00
X
Management checks
We assess HMN Financial's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. HMN Financial has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

HMNF News

External News
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Simply Wall St News

How Did HMN Financial Inc's (NASDAQ:HMNF) 6.53% ROE Fare Against The Industry?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … But what is more interesting is whether HMNF can sustain or improve on this level of return. … Metrics such as financial leverage can impact the level of ROE which in turn can affect the sustainability of HMNF's returns.

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Want To Invest In HMN Financial Inc (NASDAQ:HMNF)? Here's How It Performed Lately

When HMN Financial Inc (NASDAQ:HMNF) released its most recent earnings update (31 March 2018), I wanted to understand how these figures stacked up against its past performance. … The two benchmarks I used were HMN Financial's average earnings over the past couple of years, and its industry performance. … HMNF's trailing twelve-month earnings (from 31 March 2018) of US$4.63m has

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Is HMN Financial Inc's (NASDAQ:HMNF) PE Ratio A Signal To Buy For Investors?

I am writing today to help inform people who are new to the stock market. … and want to better understand how you can grow your money by investing in HMN Financial Inc (NASDAQ:HMNF). … HMN Financial Inc (NASDAQ:HMNF) is currently trading at a trailing P/E of 17.5x, which is lower than the industry average of 22.5x.

Simply Wall St -

What You Must Know About HMN Financial Inc's (NASDAQ:HMNF) Market Risks

A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … HMNF’s beta indicates it is a stock that investors may find valuable if they want to reduce the overall market risk exposure of their stock portfolio. … I examine HMNF’s ratio of fixed assets to total assets to see whether the company is highly exposed to the risk of this type of constraint.

Simply Wall St -

Was HMN Financial Inc's (NASDAQ:HMNF) Earnings Decline Part Of A Broader Industry Downturn?

When HMN Financial Inc (NASDAQ:HMNF) released its most recent earnings update (31 March 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … For the purpose of this commentary, I like to use the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. … I suggest you continue to research HMN Financial to get a better picture of the stock by looking at: Financial Health: Is HMNF’s operations financially sustainable?

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Does HMN Financial Inc's (NASDAQ:HMNF) PE Ratio Signal A Buying Opportunity?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for HMNF Price per share = $18.75 Earnings per share = $1.045 ∴ Price-Earnings Ratio = $18.75 ÷ $1.045 = 17.9x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … For example, if you inadvertently compared lower risk firms with HMNF, then investors would naturally value HMNF at a lower price since it is a riskier investment. … Similarly, if you accidentally compared higher growth firms with HMNF, investors would also value HMNF at a lower price since it is a lower growth investment.

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HMN Financial Inc (NASDAQ:HMNF) Delivered A Better ROE Than The Industry, Here’s Why

View our latest analysis for HMN Financial Peeling the layers of ROE – trisecting a company’s profitability Return on Equity (ROE) is a measure of HMN Financial’s profit relative to its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of HMN Financial’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NasdaqGM:HMNF Last Perf Mar 30th 18 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.

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How Should Investors React To HMN Financial Inc's (NASDAQ:HMNF) CEO Pay?

Recently, HMNF produced an earnings of US$4.40M , which is a rather significant decline from its prior year’s profit (excluding extraordinary items) of US$6.35M. … Considering the size of HMNF in terms of market cap, as well as its performance, using earnings as a proxy, it seems that Krehbiel is paid on a similar level to the average US small-cap CEO This indicates that Krehbiel’s pay is fair. … Although CEO pay doesn't necessarily make a big dent in your investment thesis in HMNF, proper governance on behalf of your investment should be a key concern.

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Should You Be Concerned About HMN Financial Inc's (NASDAQ:HMNF) Risks?

A widely-used metric to measure a stock's market risk is beta, and the broad market index represents a beta value of one. … Check out our latest analysis for HMN Financial An interpretation of HMNF's beta HMN Financial's beta of 0.36 indicates that the stock value will be less variable compared to the whole stock market. … Based on this beta value, HMNF appears to be a stock that an investor with a high-beta portfolio would look for to reduce risk exposure to the market.

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Should You Be Concerned About HMN Financial Inc's (NASDAQ:HMNF) Earnings Growth?

Check out our latest analysis for HMN Financial Was HMNF weak performance lately part of a long-term decline? … For the most up-to-date info, I use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … This means that whatever uplift the industry is enjoying, HMN Financial has not been able to realize the gains unlike its average peer.What does this mean?

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HMNF Company Info

Map
Description

HMN Financial, Inc. operates as a bank holding company for Home Federal Savings Bank that provides retail banking products and services. The company offers various deposit accounts, such as savings, negotiable order of withdrawal, non-interest bearing checking, money market, and certificate accounts, including individual retirement accounts. It also provides single family residential loans; commercial real estate and multi-family mortgage loans; construction and commercial business loans; and consumer loans, such as home equity, automobile, recreational vehicle, mobile home, and lot loans, as well as loans secured by deposit accounts, and other loans for household and personal purposes. In addition, the company offers financial planning products and services; and invests in mortgage-backed and related securities, the United States government agency obligations, and other permissible investments. The company operates through 13 full service branches located in Minnesota and Iowa; and 3 loan origination offices located in Minnesota and Wisconsin. HMN Financial, Inc. was founded in 1934 and is based in Rochester, Minnesota.

Details
Name: HMN Financial, Inc.
HMNF
Exchange: NasdaqGM
Founded: 1934
$97,489,656
4,609,440
Website: http://www.hmnf.com
Address: HMN Financial, Inc.
1016 Civic Center Drive Northwest,
Rochester,
Minnesota, 55901,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM HMNF Common Stock Nasdaq Global Market US USD 30. Jun 1994
Number of employees
Current staff
Staff numbers
187
HMN Financial employees.
Industry
Thrifts and Mortgage Finance
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/10/19 21:08
End of day share price update: 2018/10/19 00:00
Last earnings filing: 2018/08/03
Last earnings reported: 2018/06/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.