HF Financial Corp. Third Fiscal Quarter Earnings Increase 16% Over Prior Year.
Strong Mortgage Originations and Expense Controls Contribute to
Declares Regular Quarterly Dividend of $0.1125 per Share
city (1990 pop. 100,814), seat of Minnehaha co., SE S.Dak., on the Big Sioux River; settled 1856, inc. as a village 1877, as a city 1883. Settlers abandoned the site in 1862 because of Native American raids, but with the establishment (1865) of Fort
, S.D., April 29, 2013 /PRNewswire/ — HF Financial
) today reported earnings increased 16% to $1.4
million, or $0.20 per
tr.v. di·lut·ed, di·lut·ing, di·lutes
1. To make thinner or less concentrated by adding a liquid such as water.
2. To lessen the force, strength, purity, or brilliance of, especially by admixture.
share for the third fiscal quarter ended
March 31, 2013, compared to $1.2 million, or $0.17 per diluted share for
the third fiscal quarter one year ago, and relative to a 36% increase
from $1.0 million, or $0.15 per diluted share for the preceding fiscal
quarter. For the first nine months of fiscal 2013, earnings grew 34% to
$4.5 million, or $0.64 per share compared to $3.4 million, or $0.48 per
share one year earlier. Robust mortgage originations contributed to
higher revenues and strong reserve levels reduced the need for loan loss
provisions in the quarter. Classified assets continued to decline and
capital levels continued to increase.
book value per share was
$13.47 at quarter end.
“Our local non-farm economy remains strong and the recent
spring precipitation is improving
, state in the N central United States. It is bordered by North Dakota (N), Minnesota and Iowa (E), Nebraska (S), and Wyoming and Montana (W).
1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and
President and Chief Executive Officer. “New loan customers are
beginning to come to Home Federal as we have expanded our agricultural
and business lending teams throughout our
to support our
communities and the opportunities that exist. Also, the integration of
efficiencies and efforts to strengthen our brand are gaining
Traction is the use of a pulling force to treat muscle and skeleton disorders.
Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis.
Fiscal Third Quarter Financial Highlights: (at or for the periods
ended March 31, 2013, compared to
31, 2012, and March 31,
* Earnings per diluted share for the fiscal third quarter increased
33% to $0.20 versus $0.15 in the second fiscal quarter. Relative to one
year earlier, earnings per share improved 18%.
* Mortgage banking related revenue totaled $1.6 million ($1.2
million in gains on sale and $406,000 for loan servicing income) for the
third quarter ended March 31, 2013 versus $961,000 the previous quarter
and $679,000 one year earlier.
* No loan loss provisions were booked during the third fiscal
quarter while loan reserves remained at similar levels relative to total
loans. Loan loss reserves totaled 1.56% at March 31, 2013 compared to
1.59% at December 31, 2012 and 1.48% at March 31, 2012.
* Classified assets totaled $39.7 million at March 31, 2013 compared
to $43.4 million at December 31, 2012 and $48.8 million one year
earlier. Following the
The process or condition of becoming worse.
from one performing but classified
loan into nonaccrual status, nonperforming assets (“NPAs”)
increased to $23.6 million, or 1.97%, of total assets compared to $17.1
million at December 31, 2012, or 1.40%, of total assets at the end of
the preceding quarter. Troubled debt restructurings totaled $10.1
million at March 31, 2013 versus $10.2 million at the end of the
previous quarter and $16.5 million one year earlier.
* The net interest margin, expressed on a fully taxable equivalent
tr. & intr.v. nimmed, nim·ming, nims Archaic
To steal; pilfer.
[Middle English nimen, to take, from Old English niman; see
, TE”), was stable at 2.64% versus 2.68% for the
* Capital levels at March 31, 2013 continued to remain well above
tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates
1. To control or direct according to rule, principle, or law.
“well-capitalized” minimum levels of 10.00%,
6.00% and 5.00%, respectively:
** Total risk-based capital to risk-weighted assets was 16.42%
versus 16.51% at December 31, 2012.
to risk-weighted assets was 15.18% versus 15.26%
at December 31, 2012.
** Tier 1 capital to adjusted total assets was 9.80% versus 9.54% at
December 31, 2012.
* The most recent dividend of $0.1125 per share represents the
twentieth consecutive quarter at this level and provides a 3.26% current
yield at recent market prices.
* Tangible book value per share increased to $13.47 per share,
compared to $13.10 per share at March 31, 2012.
Balance Sheet and Asset Quality Review
Total assets at March 31, 2013, decreased slightly to $1.20 billion
from $1.22 billion at the end of the preceding quarter due primarily to
decreased cash levels. Total loans increased to $682.6 million from
$677.6 million during the most recent quarter. The Bank’s loan
portfolio remains well-diversified with commercial real estate loans
accounting for 43.5% of the portfolio followed by agricultural loans
totaling 24.6% of the portfolio. Consumer loans totaled 13.9%,
commercial business totaled 10.4% and residential loans totaled
“New mortgage originations and refinancings continue to
dominate our lending activities. Meanwhile, our team is working
Marked by persevering, painstaking effort. See Synonyms at busy.
[Middle English, from Old French, from Latin d
to develop new relationships for commercial and agricultural
lending,” added Bianchi.
Total deposits were $897.2 million at March 31, 2013, versus $933.1
million at December 31, 2012 and $892.8 one year earlier. Deposit
balances decreased in the third fiscal quarter from the preceding
quarter, due primarily to a decrease from typical seasonal public fund
Nonperforming assets, which include performing loans that have been
restructured and are current, increased to $23.6 million at March 31,
2013 from $17.1 million the preceding quarter and decreased from $24.5
million a year ago. At March 31, 2013, NPAs represented 1.97% of total
assets. The increase in nonperforming assets primarily related to some
continued difficulty in the
sector, specifically related to one
relationship. Despite the increase in nonperforming assets, the
Bank has less classified assets at March 31, 2013 compared to the
preceding quarter and one year earlier. Classified assets totaled $39.7
million at March 31, 2013 compared to $43.4 million at December 31, 2012
and $48.8 million at March 31, 2012.
Charge-off activity continues to slow. For the third fiscal quarter,
loan charge-offs totaled $189,000 compared to $1.3 million one year
earlier. For the nine months ended March 31, 2013, charge-offs totaled
$1.2 million versus $7.4 million for the nine months ended March 31,
The allowance for loan and lease losses at March 31, 2013, totaled
$10.7 million, representing 1.56% of total loans outstanding. These
levels are similar to the preceding quarter period at $10.8 million and
1.59% of total loans.
Tangible common shareholders’ equity increased to 7.97% of
tangible assets at March 31, 2013 compared to 7.79% at December 31,
book value per common share
was $13.47 at March 31, 2013
up from $13.13 per share at the end of fiscal 2012.
Capital ratios continued to remain well above regulatory
requirements for a well
institution with Tier 1 capital to
risk-weighted assets of 15.18% at March 31, 2013, while its Tier 1
capital to adjusted total assets was 9.80%. These regulatory ratios were
much higher than the well capitalized required minimum levels of 6.00%
and 5.00%, respectively.
Review of Operations
For the quarter ended March 31, 2013, HF Financial’s earnings
reflect continued strong gains on the sale of mortgage loans from
activities and expense controls. “Our efforts to
control expenses are supporting our improved profitability. Despite
paying higher mortgage commissions and incentives, our total
non-interest expense levels have trended down,” said
outer borough (1991 pop. 226,100) of Greater London, SE England. The area is a rail and industrial center. Its manufactures include automobile parts, clocks and watches, and electrical equipment.
Chief Financial Officer and Treasurer.
Net interest income totaled $7.1 million for the third fiscal
quarter 2013 compared to $7.2 million for the previous fiscal quarter,
and $7.7 million in the year ago quarter. The NIM, TE was 2.64% for the
third quarter compared to 2.68% the preceding quarter.
Gains on the sale of loans contributed to a strong level of
noninterest income complemented by fees on deposits and loan servicing
income. Continued high levels of mortgage activity produced $1.2 million
in gains during the third fiscal quarter compared to $1.4 million the
preceding quarter. Fees on deposits totaled $1.4 million for the quarter
ended March 31, 2013 versus $1.5 million the previous quarter and $1.4
million one year earlier. Loan servicing income totaled $406,000 for the
quarter compared to a net expense of $450,000 the preceding quarter due
allowance, as a reduction in
occurred. During the third fiscal quarter, a sale of land originally
purchased for branch expansion resulted in a one-time charge to other
noninterest income for
1. Almost exact or correct:
$83,000. Total noninterest income
was $3.7 million for the quarter ended March 31, 2013 compared to $3.1
million the preceding quarter and $3.0 million a year ago.
Noninterest expenses remained stable at $8.5 million in the third
fiscal quarter, a level similar to the preceding quarter. In the fiscal
third quarter a year ago, noninterest expenses totaled $8.7 million. For
the nine months ended March 31, 2013, noninterest expenses decreased
6.2% to $25.8 million compared to $27.5 million for the same period one
year earlier. Reflecting the higher mortgage commissions and incentive
compensation programs relative to prior quarters, total compensation and
employee benefit expenses increased to $5.3 million for the quarter
ended March 31, 2013 compared to $4.8 million one quarter earlier.
These financial results are preliminary until the Form 10-Q is filed
in May 2013.
v. de·clared, de·clar·ing, de·clares
1. To make known formally or officially. See Synonyms at announce.
2. To state emphatically or authoritatively; affirm.
The board of directors declared a regular quarterly cash dividend of
$0.1125 per common share for the third fiscal quarter 2013. The dividend
is payable May 17, 2013 to stockholders of record May 10, 2013.
Use of Non-GAAP Financial Measures
This press release contains financial measures that are not
generally accepted accounting
See generally accepted accounting principles (GAAP).
“). “Net Interest Margin, TE” is a
non-GAAP financial measure. Information regarding the usefulness of Net
Interest Margin, TE appears in the notes to the attached financial
statements. The Company believes that the presentation of non-GAAP
financial measures will permit investors to assess the Company’s
core operating results on the same basis as management. Non-GAAP
financial measures should be considered supplemental to, not a
substitute for or superior to, financial measures calculated in
accordance with GAAP. As other companies may use different calculations
for these measures, this presentation may not be comparable to other
similarly titled measures reported by other companies. Reconciliation of
the non-GAAP measures to the most comparable GAAP measures are set forth
in the notes to the attached financial statements.
About HF Financial Corp.
HF Financial Corp., based in Sioux Falls, SD, is the parent company
companies, including Home Federal Bank, Mid
[for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name.
Capital Services, Inc., dba Mid America Leasing Company,
The town or city of one’s birth, rearing, or main residence.
Noun 1. hometown – the town (or city) where you grew up or where you have your principal residence; “he never went back to his hometown again”
Investment Services, Inc. and HF Financial Group, Inc. As the
largest publicly traded savings association headquartered in South
Dakota, HF Financial Corp. operates with 28 offices in 19 communities,
throughout Eastern South Dakota and one location in
The Company operates a branch in the Twin Cities market as Infinia Bank,
a Division of Home Federal Bank of South Dakota.
also available at www.homefederal.com and www.infiniabank.com.
This news release and other reports issued by the Company, including
reports filed with the Securities and Exchange Commission, contain
“forward-looking statements” that deal with future results,
expectations, plans and performance. In addition, the Company’s
management may make forward-looking statements orally to the media,
securities analysts, investors or others. These forward-looking
statements might include one or more of the following:
* Projections of income, loss, revenues, earnings or losses per
share, dividends, capital expenditures, capital structure, adequacy of
loan loss reserves, tax benefit or other financial items.
* Descriptions of plans or objectives of management for future
operations, products or services, transactions, investments and use of
debentures payable to trusts.
* Forecasts of future economic performance.
* Use and descriptions of assumptions and estimates underlying or
relate prep →
relate prep → ,
Forward-looking statements can be identified by the fact they do not
relate strictly to historical or current facts. They often include words
such as ”
See also Hope.
personification of cheery contentment. [Fr. Lit.: “Roger Bontemps” in Walsh Modern, 66]
beset by inconceivable misfortunes, hero indifferently shrugs them off. [Fr.
“bright,” “pleased,” “believe,”
“expect,” “anticipate,” “intend,”
“plan,” “estimate” or words of similar meaning, or
verbs such as “will,” “would,”
“should,” “could,” or “may”.
Forward-looking statements about the Company’s expected
financial results and other plans are subject to certain risks,
uncertainties and assumptions. These include, but are not limited to the
following: possible legislative changes and adverse economic, business
and competitive conditions and developments (such as shrinking interest
margins and continued short-term environments); deposit outflows,
reduced demand for financial services and loan products; changes in
accounting policies or
n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks.
, or in monetary and fiscal policies of
the federal government; changes in credit and other risks
v. posed, pos·ing, pos·es
1. To assume or hold a particular position or posture, as in sitting for a portrait.
2. To affect a particular mental attitude.
Company’s loan and lease portfolios; the ability or inability of
the Company to manage interest rate and other risks; unexpected or
continuing claims against the Company’s
Self fund Health insurance adjective Referring to the practice of carrying an individual health insurance policy for oneself; self insurance is usually more expensive than group insurance
the ability or inability of the Company to successfully enter into a
definitive agreement for and close anticipated transactions;
technological, computer-related or operational difficulties; adverse
changes in securities markets; results of
; and the other
risks detailed from time to time in the Company’s SEC filings,
including but not limited to, its annual report on Form 10-K for the
fiscal year ending June 30, 2012, and its subsequent quarterly reports
on Form 10-Q.
Forward-looking statements speak only as of the date they are made.
The Company does not undertake to update forward-looking statements to
or events that occur after the date the
forward-looking statements are made. Although the Company believes its
expectations are reasonable, it can give no assurance that such
expectations will prove to be correct. Based upon changing conditions,
should any one or more of these risks or uncertainties
v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es
1. To cause to become real or actual:
should any underlying assumptions prove
, actual results may
vary materially from those described in any forward-looking
SOURCE HF Financial Corp.