Note 22 - HMN Financial, Inc. Financial Information (Parent Company Only)

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

NOTE

22

HMN Financial, Inc. Financial Information (Parent Company Only)

The following are the condensed financial statements for the parent company only as of

December

31,

2016

and

2015

and for the years ended

December

31,

2016,

2015

and

2014.

Dollars in thousands)	2016			2015			2014
Condensed Balance Sheets
Assets:
Cash and cash equivalents	$	3,314			2,564
Investment in subsidiaries		78,108			74,565
Prepaid expenses and other assets		44			33
Deferred tax asset, net		756			1,000
Total assets	$	82,222			78,162
Liabilities and Stockholders' Equity:
Other borrowed money	$	7,000			9,000
Accrued expenses and other liabilities		(697	)		(483	)
Total liabilities		6,303			8,517
Common stock		91			91
Additional paid-in capital		50,566			50,388
Retained earnings		86,886			80,536
Net unrealized losses on securities available for sale		(820	)		(214	)
Unearned employee stock ownership plan shares		(2,223	)		(2,417	)
Treasury stock, at cost, 4,639,739 and 4,645,769 shares		(58,581	)		(58,739	)
Total stockholders' equity		75,919			69,645
Total liabilities and stockholders' equity	$	82,222			78,162
Condensed Statements of Income
Interest income	$	0			1			1
Interest expense		(589	)		(571	)		0
Equity income of subsidiaries		7,148			3,629			7,644
Compensation and benefits		(264	)		(269	)		(233	)
Occupancy		(30	)		(30	)		(24	)
Data processing		(6	)		(6	)		(6	)
Professional services		(138	)		(119	)		(165	)
Other		(329	)		(216	)		(374	)
Income before income tax benefit		5,792			2,419			6,843
Income tax benefit		(558	)		(537	)		(536	)
Net income	$	6,350			2,956			7,379
Condensed Statements of Cash Flows
Cash flows from operating activities:
Net income	$	6,350			2,956			7,379
Adjustments to reconcile net income to cash used by operating activities:
Equity income of subsidiaries		(7,148	)		(3,629	)		(7,644	)
Deferred income tax benefit (expense)		244			22			(92	)
Earned employee stock ownership shares priced above original cost		80			57			53
Stock option compensation		79			0			1
Amortization of restricted stock awards		177			447			240
Decrease in unearned ESOP shares		194			193			194
Decrease (increase) in other assets		(11	)		(23	)		69
Decrease in other liabilities		(214	)		(692	)		(420	)
Other, net		(1	)		1			0
Net cash used by operating activities		(250	)		(668	)		(220	)
Cash flows from investing activities:
Decrease in loans receivable, net		0			900			100
Net cash provided by investing activities		0			900			100
Cash flows from financing activities:
Redemption of preferred stock		0			(10,000	)		(16,000	)
Dividends to preferred stockholders		0			(225	)		(5,964	)
Proceeds from borrowings		0			10,000			0
Repayments of borrowings		(2,000	)		(1,000	)		0
Dividends received from Bank		3,000			3,000			22,500
Net cash provided by financing activities		1,000			1,775			536
Increase in cash and cash equivalents		750			2,007			416
Cash and cash equivalents, beginning of year		2,564			557			141
Cash and cash equivalents, end of year	$	3,314			2,564			557