HMN Financial Inc. reported unaudited consolidated earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported net income of $0.7 million, a decrease of $2.1 million compared to net income of $2.8 million for the first quarter of 2012. Net income available to common shareholders was $0.3 million, a decrease of $2.0 million from the net income available to common shareholders of $2.3 million for the first quarter of 2012. Diluted earnings per common share were $0.06, a decrease of $0.52 from the diluted earnings per common share of $0.58 for the first quarter of 2012. Net interest income was $4.9 million, a decrease of $1.3 million, or 20.6%, compared to $6.2 million for the first quarter of 2012. Interest income was $6.3 million, a decrease of $2.0 million, or 23.6%, from $8.3 million for the first quarter of 2012. Book value per common share was $8.07 compared to $7.81 a year ago. Return on average common equity was 4.90% compared to 19.32% a year ago. Return on average assets was 0.48% compared to 1.57% a year ago. Income before income tax expense was $0.77 million compared to $2.80 million a year ago.

HMN Financial Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2012. For the quarter, the company reported net interest income of $5.52 million, income before income tax expense of $1.62 million and net income available to common shareholders of $1.02 million or $0.25 per diluted share on total interest income of $7.04 million compared to net interest income of $6.88 million, loss before income tax expense of $7.62 million and net loss available to common shareholders of $8.08 million or $2.08 per diluted share on total interest income of $9.21 million reported a year ago. Return on average assets (annualized) was 0.93% compared to a negative return on average assets of 3.75% reported a year ago. Return on average equity was 9.77% compared to a 45.87% loss on average equity for the same period of 2011. Interest income decreased between the periods primarily because of a $163 million decrease in the average interest-earning assets and also because of a decrease in the average yields between the periods. The net income available to common shareholders increased primarily because of the change in the net income (loss) between the periods. The improvement in net income in the fourth quarter of 2012 is due primarily to a $7.6 million decrease in the provision for loan losses, a $0.4 million increase in the gain on sale of loans, and a $2.6 million decrease in noninterest expenses due primarily to the decrease in expenses and losses recognized on real estate owned between the periods. These changes to net income were partially offset by a $1.4 million decrease in net interest income due primarily to a decrease in interest earning assets between the periods. For the year, the company reported net interest income of $23.68 million, income before income tax expense of $5.45 million and net income available to common shareholders of $3.46 million or $0.86 per diluted share on total interest income of $30.82 million compared to net interest income of $28.41 million, loss before income tax expense of $11.55 million and net loss available to common shareholders of $13.37 million or $3.47 per diluted share on total interest income of $39.54 million reported a year ago. Return on average assets (annualized) was 0.79% compared to a negative return on average assets of 1.39% reported a year ago. Book value per common share was $8.02 compared to $7.36 as at December 31, 2011. Return on average common equity was 8.94% for 2012, compared to a 16.94% loss on average common equity for 2011. Net income available to common shareholders was improved $16.9 million. Net income available to common shareholders increased primarily because of the change in net income between the periods. Interest income decreased between the periods primarily because of a $146 million decrease in the average interest-earning assets and also because of a decrease in the average yields earned between the periods. The improvement in net income in 2012 is due primarily to a $14.8 million decrease in the provision for loan losses between the periods, a $1.9 million increase in the gain on sale of loans, and a $4.9 million decrease in noninterest expenses due primarily to the decrease in expenses and losses recognized on real estate owned between the periods. These improvements to net income were partially offset by a $4.7 million decrease in interest income due primarily to a decrease in interest earning assets between the periods.

HMN Financial Inc., Annual General Meeting, Apr 23, 2013., at 10:00 Central Standard Time. Location: Rochester Golf and Country Club. Agenda: To consider the election of three directors, to serve until the conclusion of the third succeeding annual meeting of stockholders or until their successors have been duly elected and qualified; to consider an advisory (non-binding) vote for the approval of the compensation of executives, as disclosed in this proxy statement; to consider an advisory (non-binding) vote on the frequency of the advisory (non-binding) vote for the approval of the compensation of executives, as disclosed in this proxy statement; to consider the approval to amend certificate of incorporation, as amended, to increase the number of authorized shares of common stock from 11,000,000 shares, $0.01 par value per share, to 16,000,000 shares, $0.01 par value per share; and to consider the ratification of the appointment of KPMG LLP as independent registered public accounting firm for 2013.