FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact Name of Registrant as Specified in its Charter) (State or other jurisdiction 1016 Civic Center Drive Northwest Rochester, Minnesota 55901 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (507) 535-1200 (Commission File Number) Date of Report (Date of earliest event reported): July 24, ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-24100 HMN FINANCIAL, INC. (Exact name of registrant as specified in its charter) | Delaware | 41-1777397 | | - ...

ROCHESTER, Minn., April 24, 2024 (GLOBE NEWSWIRE) -- HMN Financial, Inc. (HMN or the Company) (NASDAQ:HMNF) today announced that its Board of Directors has declared a quarterly dividend of $0.10 per share of common stock, payable on June 7, 2024 to stockholders of record at the close of business on May 17, 2024. The declaration and amount of any future cash dividends remains subject to the sole discretion of the Board of Directors and will depend upon many factors, including the Company's results of operati ...

Financial Performance - Net income for the first quarter of 2024 was $1.3 million, a decrease of $0.3 million from $1.6 million in the first quarter of 2023[1] - Diluted earnings per share decreased to $0.30, down $0.07 from $0.37 in the first quarter of 2023[1] - Return on average assets (annualized) for Q1 2024 was 0.46%, down from 0.61% in Q1 2023, while return on average equity decreased to 4.36% from 5.64%[17] - Basic earnings per share for Q1 2024 was $0.30, down from $0.38 in Q1 2023, representing a decrease of 21.1%[25] - Income tax expense decreased to $503,000 in Q1 2024 from $672,000 in Q1 2023, a reduction of 25.2% attributed to lower pre-tax income[16] Interest Income and Expenses - Net interest income was $7.3 million, a decrease of $0.8 million or 10.0% compared to $8.1 million in the first quarter of 2023[3] - Interest expense increased to $4.7 million, an increase of $2.8 million or 156.4% compared to $1.9 million in the first quarter of 2023[4] - Interest income rose to $12.0 million, an increase of $2.1 million or 21.0% from $9.9 million in the first quarter of 2023[3] - Net interest income after provision for credit losses was $7,465,000 for Q1 2024, compared to $8,071,000 for Q1 2023, indicating a decline of 7.5%[25] - Net interest income decreased to $7,256,000 in Q1 2024 from $8,063,000 in Q1 2023, a decline of 10.0%[27] Asset Quality - The provision for credit losses was ($0.2) million, a decrease of $0.2 million compared to the provision for credit losses in the first quarter of 2023[6] - Total non-performing assets decreased to $2.8 million at March 31, 2024, down from $3.8 million at December 31, 2023[10] - Total non-performing assets decreased to $2,800,000 as of March 31, 2024, down from $3,818,000 as of December 31, 2023, representing a reduction of 26.6%[12] - Non-performing loans to total loans receivable improved to 0.32% in Q1 2024 from 0.44% in Q1 2023[27] - The allowance for credit losses was $11.6 million at March 31, 2024, compared to $11.3 million at the same time in 2023[8] Operational Efficiency - Non-interest income remained stable at $1,907,000 for Q1 2024, compared to $1,928,000 for Q1 2023, reflecting a slight decrease of 1.1%[13][25] - Non-interest expense decreased by $142,000, or 1.8%, to $7,551,000 in Q1 2024 from $7,693,000 in Q1 2023[15][25] - Efficiency ratio increased to 82.41% in Q1 2024 from 77.00% in Q1 2023, indicating a decline in operational efficiency[27] Balance Sheet Highlights - Total assets increased to $1,152,250,000 as of March 31, 2024, up from $1,107,135,000 as of December 31, 2023, marking a growth of 4.1%[23] - Deposits rose to $1,030,918,000 as of March 31, 2024, compared to $976,793,000 as of December 31, 2023, reflecting an increase of 5.5%[23] - The allowance for credit losses to non-performing loans improved to 413.78% as of March 31, 2024, compared to 309.69% as of December 31, 2023[12] - Book value per common share increased to $24.39 in Q1 2024 from $22.35 in Q1 2023, an increase of 9.1%[27] - Stockholders' equity to total assets at the end of Q1 2024 was 9.44%, down from 9.73% at the end of Q4 2023[27] - Average stockholders' equity to average assets was 10.62% in Q1 2024, compared to 10.74% in Q1 2023[27]

First Quarter Summary Net income of $1.3 million, down $0.3 million, from $1.6 million for first quarter of 2023Diluted earnings per share of $0.30, down $0.07, from $0.37 for first quarter of 2023Net interest income of $7.3 million, down $0.8 million, from $8.1 million for first quarter of 2023Net interest margin of 2.63%, down 46 basis points, from 3.09% for first quarter of 2023Provision for credit losses of ($0.2) million, down $0.2 million, from first quarter of 2023 Net Income Summary Three Months End ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to ______. Commission file number: 0-24100. HMN FINANCIAL, INC. (Exact name of registrant as specified in its charter) Delaware 41-1777397 (State or o ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission File Number 0-24100 HMN FINANCIAL, INC. (Exact name of registrant as specified in its charter) Delaw ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents Commission File Number 0-24100 HMN FINANCIAL, INC. (Exact name of registrant as specified in its charter) | Delaware | 41-1777397 | | --- | --- | | (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | | 1016 Civic Center Drive N.W., Rochester, MN | 55901 | | ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission File Number 0-24100 HMN FINANCIAL, INC. (Exact name of registrant as specified in its charter) Delaware ...

Loan Delinquency and Asset Quality - As of December 31, 2022, the total loans delinquent for 60-89 days amounted to $268,000, representing 0.03% of the total loan category, while loans delinquent for 90 days and over totaled $569,000, or 0.07%[77] - At December 31, 2022, non-performing assets were $1.9 million, representing 0.17% of total assets, while classified loans totaled $37.9 million, or 4.8% of total loans[159] - Approximately 68% of the total loans receivable as of December 31, 2022, were concentrated in commercial business and commercial real estate loans, which present higher risks[157] Securities and Investments - The Company had $192.7 million in mortgage-backed and related securities classified as available for sale at December 31, 2022, a decrease from $245.4 million at December 31, 2021[86] - The Company purchased $15.0 million in mortgage-backed securities in 2022, compared to $188.8 million purchased in 2021[86] - The composition of the Company's securities portfolio included $54.998 million in U.S. government agency obligations, which accounted for 67.7% of the total securities available for sale as of December 31, 2022[83] - The average remaining life of other marketable securities was 1.39 years as of December 31, 2022, compared to 1.98 years in the previous year[83] - The weighted average yield for U.S. government agency securities was 1.00% as of December 31, 2022[85] - As of December 31, 2022, the Company recorded a $19.8 million other comprehensive loss in equity due to the negative impact of increased market interest rates on its fixed rate available for sale securities portfolio[152] Deposits and Funding - The total deposits at the Bank increased by $31.3 million, or 3.29%, from $950.7 million at the end of 2021 to $981.9 million at the end of 2022[93] - The Bank's certificates of deposit increased by $45.8 million in 2022, contributing to the overall growth in deposits[91] - The total amount of uninsured deposits was approximately $379,626,000, with $322,316,000 in deposits less than $250,000[96] - The Bank's primary funding source is retail and commercial deposits, with reliance on wholesale funding from FHLB and the Federal Reserve Bank[145] Regulatory Compliance and Capital - The Bank is subject to various regulatory capital requirements but meets certain exemption requirements under the FRB's Small Bank Holding Company Policy Statement[113] - Regulatory capital requirements could impose restrictions on the Bank's operations and dividend payments to HMN[128] - The Company is subject to extensive regulation, which may impact its profitability and require changes to business practices[167] - The company faces significant regulatory scrutiny, with potential sanctions for non-compliance with laws such as the USA PATRIOT Act and the Bank Secrecy Act, which could result in large fines[176] Employee and Operational Information - The Bank had 164 full-time employees as of December 31, 2022, with no employees represented by a collective bargaining unit[107] - The Bank's liquidity position is actively managed and monitored using cash flow forecasts[147] - The company's technological infrastructure is vital for operations, and any extended disruption could negatively impact financial results and regulatory standing[177] Dividends and Shareholder Information - In 2022, the Bank paid dividends to HMN totaling $6.0 million, which were utilized for operating expenses, treasury stock purchases, and improving cash position[123] - HMN distributed $1.0 million in dividends to its common shareholders in 2022[123] - The company's ability to pay dividends is dependent on receiving dividends from the Bank, which is subject to legal and regulatory limitations[182] - The company's stock may be diluted by the issuance of additional shares or treasury stock without shareholder consent, which could adversely affect existing stockholders[181] Competition and Market Risks - The Company faces significant competition from various financial institutions, including mortgage bankers and credit unions, which may limit profitability[154] - Changes in interest rates could adversely affect the Company's net interest income, particularly in a falling interest rate environment[150] - The Company continues to monitor acquisition opportunities, which may involve risks such as disruption of business and potential dilution of shareholder value[165] Miscellaneous - The Bank had no FHLB advances or Federal Reserve Bank borrowings outstanding as of December 31, 2022, but had the ability to borrow up to $230.1 million for liquidity purposes[99] - The Bank's lending limit to one borrower was approximately $16.2 million as of December 31, 2022[116] - The Bank's OCC assessments for the year ended December 31, 2022, were approximately $0.2 million[120] - The Bank received an "outstanding" rating in its last CRA exam conducted on January 27, 2020[136] - The effective dividend rates for FHLB stock were 3.00% and 7.25% for different subclasses as of September 30, 2022[134] - The Company may need to raise additional capital to meet future requirements, which could dilute existing shareholders' interests[163]