HF Financial Corp. in Sioux Falls, S.D., said Tuesday that it expects to revise its results for its fiscal year that ended June 30 downward by $500,000 to $1 million to reflect downgrades in its agriculture portfolio.
The $1.2 billion-asset company said that it met with a borrower last week, receiving indications that the client was no longer able to meet its loan commitments. That led the company to reclassify $3.7 million of farm loans to nonperforming status, resulting in a pretax charge of $1.2 million.
On July 25, the company reported a fiscal fourth quarter loss of $1.27 million, compared to earnings of $1.13 million a year earlier. The loss was largely due to of a $3.9 million charge for the liquidation of an $8.8 million portfolio of trust-preferred securities that had been downgraded in 2009. For the fiscal year, the company earned $1.4 million, down 75% from a year earlier.
HF said it plans to file its annual report with the Securities and Exchange Commission next month.