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

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

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

NOTE

2

2

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

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

December 31,

20

17

and

2016

and for the years ended

December 31, 2017,

2016

and

2015.

(Dollars in thousands)	201 7			201 6			201 5
Condensed Balance Sheets
Assets:
Cash and cash equivalents	$	2,057			3,314
Investment in subsidiaries		77,006			78,108
Prepaid expenses and other assets		1,867			1,159
Deferred tax asset, net		141			756
Total assets	$	81,071			83,337
Liabilities and Stockholders' Equity:
Other borrowed money	$	0			7,000
Accrued expenses and other liabilities		253			418
Total liabilities		253			7,418
Common stock		91			91
Additional paid-in capital		50,623			50,566
Retained earnings		91,448			86,886
Net unrealized losses on securities available for sale		(957	)		(820	)
Unearned employee stock ownership plan shares		(2,030	)		(2,223	)
Tr easury stock, at cost, 4,631,124 and 4,639,739 shares		(58,357	)		(58,581	)
Total stockholders' equity		80,818			75,919
Total liabilities and stockholders' equity	$	81,071			83,337
Condensed Statements of Income
Interest income	$	0			0			1
Interest expense		(306	)		(589	)		(571	)
Equity income of subsidiaries		4,878			7,148			3,629
Compensation and benefits		(257	)		(264	)		(269	)
Occupancy		(30	)		(30	)		(30	)
Data processing		(6	)		(6	)		(6	)
Professional services		(130	)		(138	)		(119	)
Other		(319	)		(329	)		(216	)
Income before income tax benefit		3,830			5,792			2,419
Income tax benefit		(574	)		(558	)		(537	)
Net income	$	4,404			6,350			2,956
Condensed Statements of Cash Flows
Cash flows from operating activities:
Net income	$	4,404			6,350			2,956
Adjustments to reconcile net income to cash used by operating activities:
Equity income of subsidiaries		(4,878	)		(7,148	)		(3,629	)
Deferred income tax benefit		615			244			22
Earned employee stock ownership shares priced above original cost		147			80			57
Stock option compensation		41			79			0
Amortization of restricted stock awards		147			177			447
Decrease in unearned ESOP shares		193			194			193
Increase in other assets		(6	)		(11	)		(23	)
Dec rease in other liabilities		(866	)		(214	)		(692	)
Other, net		0			(1	)		1
Net cash used by operating activities		(203	)		(250	)		(668	)
Cash flows from investing activities:
Decrease in loans receivable, net		0			0			900
Net cash provided by investing activities		0			0			900
Cash flows from financing activities:
Redemption of preferred stock		0			0			(10,000	)
Dividends to preferred stockholders		0			0			(225	)
Stock awards withheld for tax withholding		(54	)		0			0
Proceeds from borrowings		0			0			10,000
Repayments of borrowings		(7,000	)		(2,000	)		(1,000	)
Dividends received from Bank		6,000			3,000			3,000
Net cash (used) provided by financing activities		(1,054	)		1,000			1,775
(Decrease) increase in cash and cash equivalents		(1,257	)		750			2,007
Cash and cash equivalents, beginning of year		3,314			2,564			557
Cash and cash equivalents, end of year	$	2,057			3,314			2,564