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

12 Months Ended

Dec. 31, 2023

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 and for the years ended December 31, 2023 and 2022.

(Dollars in thousands)	2023			2022
Condensed Balance Sheets
Assets:
Cash and cash equivalents	$	16,287			15,250
Investment in subsidiaries		91,500			81,190
Prepaid expenses and other assets		56			1,046
Total assets	$	107,843			97,486
Liabilities and Stockholders' Equity:
Accrued expenses and other liabilities	$	136			150
Total liabilities		136			150
Common stock		91			91
Additional paid-in capital		41,235			41,013
Retained earnings		142,278			138,409
Net unrealized losses on securities available for sale		(13,191	)		(19,761	)
Unearned employee stock ownership plan shares		(870	)		(1,063	)
Treasury stock, at cost, 4,670,757 and 4,647,686 shares		(61,836	)		(61,353	)
Total stockholders' equity		107,707			97,336
Total liabilities and stockholders' equity	$	107,843			97,486
Condensed Statements of Income
Interest income	$	321			43
Equity income of subsidiaries		6,570			8,500
Compensation and benefits		(273	)		(272	)
Occupancy and equipment		(32	)		(30	)
Data processing		(8	)		(6	)
Professional services		(129	)		(125	)
Other		(433	)		(404	)
Income before income tax (expense) benefit		6,016			7,706
Income tax (expense) benefit		(11	)		339
Net income	$	6,005			8,045
Condensed Statements of Cash Flows
Cash flows from operating activities:
Net income	$	6,005			8,045
Adjustments to reconcile net income to cash used by operating activities:
Equity income of subsidiaries		(6,570	)		(8,500	)
Deferred income tax benefit		0			4
Amortization of restricted stock awards		225			227
Amortization of unearned ESOP shares		193			193
Earned employee stock ownership shares priced above original cost		207			271
Decrease (increase) in other assets		990			(261	)
Decrease in other liabilities		(14	)		(13	)
Other, net		0			(1	)
Net cash provided (used) by operating activities		1,036			(35	)
Cash flows from financing activities:
Treasury stock purchased		(629	)		(2,134	)
Stock awards withheld for tax withholding		(64	)		(70	)
Dividends to stockholders		(1,306	)		(1,049	)
Dividends received from Bank		2,000			6,000
Net cash provided by financing activities		1			2,747
Increase in cash and cash equivalents		1,037			2,712
Cash and cash equivalents, beginning of year		15,250			12,538
Cash and cash equivalents, end of year	$	16,287			15,250