HMN Financial Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2016. For the quarter, the company has posted net interest income of $6,291,000 against $5,716,000 a year ago. Income before income tax expense was $2,657,000 against $1,606,000 a year ago. Net income of $1.7 million, up $0.6 million from $1.1 million for fourth quarter of 2015. Net income available to common was $1,684,000 or $0.35 diluted per share against $1,090,000 or $0.23 diluted per share a year ago. Return on average assets was 0.99% against 0.69% a year ago. Return on average equity was 8.93% against 6.19% a year ago. The increase in net income for the fourth quarter of 2016 is due primarily to a $0.6 million increase in interest income as a result of an increase in the average interest-earning assets and a change in the composition of the average interest-earning assets held between the periods. These increases in income were partially offset by a $0.5 million increase in income tax expense due to the increase in pre-tax income in the fourth quarter of 2016 when compared to the same period of 2015. For the year, the company has posted net interest income of $25,756,000 against $19,946,000 a year ago. Income before income tax expense was $10,472,000 against $4,567,000 a year ago. Net income of $6.4 million, up $3.4 million from $3.0 million for 2015. Net income available to common was $6,350,000 or $1.34 diluted per share against $2,848,000 or $0.61 diluted per share a year ago. Return on average assets was 0.96% against 0.50% a year ago. Return on average equity was 8.71% against 4.27% a year ago. Book value per common share was $16.91 against $15.54 a year ago. The increase in net income for 2016 is due primarily to a $5.9 million increase in interest income as a result of an increase in the average interest-earning assets and a change in the composition of the average interest-earning assets held between the periods. These increases in income were partially offset by a $1.0 million increase in compensation expense due to annual increases in compensation and an increase in the number of employees related to the increased loan production.  Net income available to common shareholders increased primarily because of the increase in net income and a reduction in the dividends required to be paid on the outstanding Fixed Rate Cumulative Perpetual Preferred Stock Series A between the periods.