Financial Performance - Net income for the first quarter of 2024 was $1.3 million, a decrease of $0.3 million from $1.6 million in the first quarter of 2023[1] - Diluted earnings per share decreased to $0.30, down $0.07 from $0.37 in the first quarter of 2023[1] - Return on average assets (annualized) for Q1 2024 was 0.46%, down from 0.61% in Q1 2023, while return on average equity decreased to 4.36% from 5.64%[17] - Basic earnings per share for Q1 2024 was $0.30, down from $0.38 in Q1 2023, representing a decrease of 21.1%[25] - Income tax expense decreased to $503,000 in Q1 2024 from $672,000 in Q1 2023, a reduction of 25.2% attributed to lower pre-tax income[16] Interest Income and Expenses - Net interest income was $7.3 million, a decrease of $0.8 million or 10.0% compared to $8.1 million in the first quarter of 2023[3] - Interest expense increased to $4.7 million, an increase of $2.8 million or 156.4% compared to $1.9 million in the first quarter of 2023[4] - Interest income rose to $12.0 million, an increase of $2.1 million or 21.0% from $9.9 million in the first quarter of 2023[3] - Net interest income after provision for credit losses was $7,465,000 for Q1 2024, compared to $8,071,000 for Q1 2023, indicating a decline of 7.5%[25] - Net interest income decreased to $7,256,000 in Q1 2024 from $8,063,000 in Q1 2023, a decline of 10.0%[27] Asset Quality - The provision for credit losses was ($0.2) million, a decrease of $0.2 million compared to the provision for credit losses in the first quarter of 2023[6] - Total non-performing assets decreased to $2.8 million at March 31, 2024, down from $3.8 million at December 31, 2023[10] - Total non-performing assets decreased to $2,800,000 as of March 31, 2024, down from $3,818,000 as of December 31, 2023, representing a reduction of 26.6%[12] - Non-performing loans to total loans receivable improved to 0.32% in Q1 2024 from 0.44% in Q1 2023[27] - The allowance for credit losses was $11.6 million at March 31, 2024, compared to $11.3 million at the same time in 2023[8] Operational Efficiency - Non-interest income remained stable at $1,907,000 for Q1 2024, compared to $1,928,000 for Q1 2023, reflecting a slight decrease of 1.1%[13][25] - Non-interest expense decreased by $142,000, or 1.8%, to $7,551,000 in Q1 2024 from $7,693,000 in Q1 2023[15][25] - Efficiency ratio increased to 82.41% in Q1 2024 from 77.00% in Q1 2023, indicating a decline in operational efficiency[27] Balance Sheet Highlights - Total assets increased to $1,152,250,000 as of March 31, 2024, up from $1,107,135,000 as of December 31, 2023, marking a growth of 4.1%[23] - Deposits rose to $1,030,918,000 as of March 31, 2024, compared to $976,793,000 as of December 31, 2023, reflecting an increase of 5.5%[23] - The allowance for credit losses to non-performing loans improved to 413.78% as of March 31, 2024, compared to 309.69% as of December 31, 2023[12] - Book value per common share increased to $24.39 in Q1 2024 from $22.35 in Q1 2023, an increase of 9.1%[27] - Stockholders' equity to total assets at the end of Q1 2024 was 9.44%, down from 9.73% at the end of Q4 2023[27] - Average stockholders' equity to average assets was 10.62% in Q1 2024, compared to 10.74% in Q1 2023[27]
HMN Financial(HMNF) - 2024 Q1 - Quarterly Results