Note 3 - Business Combinations (Tables)

12 Months Ended

Dec. 31, 2024

Notes Tables

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

	As recorded by		Preliminary Fair Value			As recorded by
(dollars in thousands)	Metro Phoenix Bank		Adjustments			the Company
Assets
Cash and cash equivalents	$	101,819	$	(123	)	$	101,696
Fed funds sold		18,936		—			18,936
Core deposit intangible		—		7,592			7,592
Loans		273,843		(3,440	)		270,403
Accrued interest receivable		1,091		—			1,091
Other assets		3,342		188			3,530
Total assets		399,031		4,217			403,248
Liabilities
Deposits		354,529		(844	)		353,685
Other liabilities		673		—			673
Total liabilities		355,202		(844	)		354,358
Excess assets over liabilities	$	43,829	$	5,061			48,890
Stock issued for MPB							64,019
Total goodwill recorded						$	15,129

	As recorded by		Fair Value			As recorded by
(dollars in thousands)	HMN Financial, Inc.		Adjustments			the Company
Assets
Cash and cash equivalents	$	8,610	$	—		$	8,610
Investment securities available-for-sale		189,145		22			189,167
Loans held for sale		1,057		—			1,057
Net loans		856,164		(70,725	)		785,439
Land premises and equipment, net		15,932		2,096			18,028
Operating lease right-of-use assets		1,070		186			1,256
Accrued interest receivable		3,030		—			3,030
Core deposit intangible		—		33,500			33,500
Servicing rights		2,662		2,783			5,445
Deferred income taxes, net		7,234		7,170			14,404
Other assets		4,623		(687	)		3,936
Total assets		1,089,527		(25,655	)		1,063,872
Liabilities
Deposits		957,627		222			957,849
Short-term borrowings		1,600		—			1,600
Operating lease liabilities		1,104		352			1,456
Accrued expenses and other liabilities		22,646		(4,434	)		18,212
Total liabilities		982,977		(3,860	)		979,117
Excess assets over liabilities	$	106,550	$	(21,795	)		84,755
Stock issued for HMNF							123,602
Cash paid for HMNF							4
Total goodwill recorded						$	38,851

Schedule of Carrying Amounts of Acquired Loans That Displayed Evidence of Deterioration of Credit Quality [Table Text Block]

	December 31,
(dollars in thousands)	2022
Real estate construction	$	175
Outstanding balance		175
Carrying amount		151
Allowance for credit losses on loans		—
Carrying amount, net of allowance for loan losses	$	151

Schedule of Accretable Yield or Income Expected to be Collected [Table Text Block]

	For the year ended
	December 31,
(dollars in thousands)	2022
Beginning balance	$	177
New loans purchased		—
Accretion of income		—
Ending balance	$	177

Business Acquisition, Pro Forma Information [Table Text Block]

	Pro Formas (unaudited)
	for the years ended December 31,
(dollars in thousands)	2022		2021
Net interest income after provision for credit losses	$	107,172	$	104,087
Noninterest income		112,755		151,499
Noninterest expense		166,476		178,337
Net income (after tax)		40,784		58,585

	Pro Formas (unaudited)
	for the years ended December 31,
(dollars in thousands)	2024		2023
Net interest income after provision for credit losses	$	118,367	$	134,492
Noninterest income		121,765		88,510
Noninterest expense		203,542		186,020
Net income (after tax)		28,159		26,981

Schedule of Financing Receivables, Purchased with Credit Deterioration [Table Text Block]

(dollars in thousands)	PCD Loans
Par value of PCD loans at acquisition	$	173,922
Allowance for credit losses at acquisition		10,151
Discount at acquisition		(31,313	)
Fair value of PCD loans at acquisition	$	152,760