HMN Financial Inc. of Rochester, Minn., said fourth-quarter earnings fell 23% from the same quarter in 2005, to $2.7 million.
Diluted earnings per share fell 13%, to 67 cents, HMN said Tuesday.
For the full year, earnings fell 24%, to $8.4 million, and diluted earnings per share decreased 24%, to $2.10.
The $977 million-asset parent of Home Federal Savings Bank attributed the earnings decline to an increase in its loan-loss provision. For the quarter, it increased the provision to $1.4 million, from $179,000 a year earlier. The full-year provision more than doubled, to $8.9 million.
HMN said the increased provisions were related to a home equity loan and commercial loans related to a real estate and golf course development.
Net interest income dropped 8% for the quarter, to $8.5 million, and 10% for the full year, to $29.8 million.
Noninterest income fell 19% for the quarter, to $1.5 million, and 1% for the full year, to $6.4 million. HMN attributed the decrease to lower numbers of single-family mortgages sold.
