Author’s note: please bear with me as I begin this blog. I am certain my writing style, post format, and underlying content will evolve over time. And with that acknowledgement, it is likely a safe presumption that, upon reflection months from now, this will undoubtedly be the worst post I write. So, with that in mind, please enjoy (what is likely to be) the worst post I will contribute to the discussion of community bank investment ideas.
HMN Financial, Inc. (HMNF), the bank-holding company for Home Federal Savings Bank, operates 14 branch locations in southeast Minnesota with total assets of approximately $725 million. HMNF had a rough go during he financial crisis as the bank endured four calendar years of net losses, balance sheet declines, and a ~70% decline in its book value per share. With that mess in the rear view, I believe HMNF is poised for a solid year in 2018: its deposit base appears to be well-anchored to allow HMNF management and shareholders to benefit from higher loan yields and improved credit performance.