HF Financial Corp. has started an offering of approximately $15 million of its common stock in an underwritten public offering through Sandler O'Neill + Partners, L.P. The Company plans to use a portion of the net proceeds of the offering to repay outstanding borrowings under its loan with United Bankers' Bank. Remainder of the net proceeds of the offering for will be used for general corporate purposes and to contribute to the capital reserves of Home Federal Bank to support growing its lending activities through organic growth and/or, if appropriate opportunities arise, possible acquisitions of banks, thrifts and other financial services companies.

HF Financial Corp. reported unaudited consolidated earnings results for the first quarter ended September 30, 2009. The company reported earnings of $855,000, or $0.21 in diluted and basic per common share for the first quarter ended September 30, 2009, versus earnings of $2.0 million, or $0.49 in diluted earnings per common share, in the comparable period in fiscal 2009. Adjusting for other-than-temporary impairment credit loss and net gain on sale of securities, adjusted earnings was $1.7 million and adjusted diluted earnings per common share was $0.41 for the three month period ending September 30, 2009 as compared to $1.9 million or $0.48 (as adjusted) for the same period of fiscal 2009. Revenue totaled $10.4 million for the first quarter ended September 30, 2009, as compared to revenue of $11.7 million in the comparable period last year. The company incurred a first quarter net other-than-temporary impairment (OTTI) credit loss recognized in earnings from trust preferred securities held in the investment portfolio of $1.9 million. Net gain on sale of securities was also recorded in the quarter for a total of $533,000, as compared to $80,000 in the first quarter of fiscal 2009. Excluding the OTTI credit loss and net gain on sale of securities, adjusted revenue was $11.8 million, an $116,000 increase, or 1.0%, over the prior year quarter. Net interest income totaled $8.8 million for the quarter, up $62,000, or 0.7%, over the first fiscal quarter of last year. The increase in net interest income resulted from increases in volume of interest-earning assets and was offset by lower yields on the earning assets. The company reported interest, dividend and loan free income of $14.633 million compared to $15.831 million for the same period of last year. Tangible book value per common share was $16.20 as of September 30, 2009 compared to tangible book value per common share of $15.27 as of September 30, 2008. The company reported return on average assets of 0.29% and return on average equity of 4.87% compared to return on average assets of 0.70% and return on average equity of 12.12% for the same period of last year. The company reported income before income taxes of $1.157 million compared to income before income taxes of $2.948 million for the same period of last year. The company announced it will pay a quarterly cash dividend of 11.25 cents per common share for the first quarter of the 2010 fiscal year. The dividend will be paid on November 13, 2009 to stockholders of record on November 6, 2009. The company recorded total other than temporary impairment losses of $3.914 million and net impairment losses recognized in earnings of $1.858 million for the first quarter ended September 30, 2009.

HF Financial Corp., Q1 2010 Earnings Call, Oct 27 2009