UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2017.
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______________________ to _______________________
Commission file number 0-24100
A. Full title of the plan and the address of the plan, if different from that of the issuer named below:
Home Federal Savings Bank Employees' Savings and Profit Sharing Plan
B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:
HMN Financial, Inc.
1016 Civic Center Drive
Rochester, MN 55901
REQUIRED INFORMATION
The financial statements filed as a part of the annual report of the plan include:
1. Audited statements of net assets available for benefits as filed under the Employee Retirement Income Security Act of 1974, as amended ("ERISA");
2. Audited statements of changes in net assets available for benefits as filed under ERISA.
HOME FEDERAL SAVINGS BANK EMPLOYEES’
SAVINGS AND PROFIT SHARING PLAN
Financial Statements
December 31, 2017 and 2016
(With Report of Independent Registered Public Accounting Firm Thereon)
HOME FEDERAL SAVINGS BANK EMPLOYEES’
SAVINGS AND PROFIT SHARING PLAN
Table of Contents
| Page | |
|
Report of Independent Registered Public Accounting Firm |
1 |
| Statements of Net Assets Available for Benefits | 3 |
| Statements of Changes in Net Assets Available for Benefits | 4 |
| Notes to Financial Statements | 5 |
| Schedule H, Line 4i – Schedule of Assets (Held at End of Year) as of December 31, 2017 | 13 |
|
HOME FEDERAL SAVINGS BANK EMPLOYEES’ |
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|
SAVINGS AND PROFIT SHARING PLAN |
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|
Statements of Net Assets Available for Benefits |
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|
December 31, 2017 and 2016 |
|
2017 |
2016 |
|||||||
| Assets | ||||||||
|
Investments, at fair value: |
||||||||
|
Cash equivalents |
$ | 23,031 | $ | 12,544 | ||||
|
Collective trust fund |
2,022,342 | 1,787,243 | ||||||
|
HMN Financial, Inc. common stock |
801,512 | 873,757 | ||||||
|
Mutual funds |
17,359,759 | 14,150,547 | ||||||
|
Total investments, at fair value |
20,206,644 | 16,824,091 | ||||||
|
Receivables: |
||||||||
|
Employer contributions |
— | 3,421 | ||||||
|
Notes receivable from participants |
191,278 | 118,637 | ||||||
|
Total receivables |
191,278 | 122,058 | ||||||
|
Total assets |
20,397,922 | 16,946,149 | ||||||
|
Liabilities |
||||||||
|
Accrued expenses |
5,365 | 8,060 | ||||||
|
Accounts payable |
1,344 | 1,344 | ||||||
|
Total liabilities |
6,709 | 9,404 | ||||||
|
Net assets available for benefits, at fair value |
$ | 20,391,213 | $ | 16,936,745 | ||||
See accompanying notes to financial statements.
|
HOME FEDERAL SAVINGS BANK EMPLOYEES’ |
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|
SAVINGS AND PROFIT SHARING PLAN |
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Statements of Changes in Net Assets Available for Benefits |
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Years ended December 31, 2017 and 2016 |
|
2017 |
2016 |
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| Additions | ||||||||
|
Additions to net assets attributed to: |
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|
Contributions: |
||||||||
|
Employer |
$ | 206,801 | $ | 204,431 | ||||
|
Employee |
1,148,988 | 1,082,136 | ||||||
|
Rollover |
170,241 | 127,294 | ||||||
|
Total contributions |
1,526,030 | 1,413,861 | ||||||
|
Investment income |
||||||||
|
Net appreciation in fair value of investments: |
1,966,229 | 1,129,529 | ||||||
|
Dividends |
829,411 | 485,581 | ||||||
|
Less: Asset management fees |
(12,125 | ) | (19,740 | ) | ||||
|
Net investment income |
2,783,515 | 1,595,370 | ||||||
|
Interest income on notes receivable from participants |
5,651 | 4,111 | ||||||
|
Total additions |
4,315,196 | 3,013,342 | ||||||
|
Deductions |
||||||||
|
Deductions to net assets attributed to: |
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|
Distributions |
842,703 | 622,473 | ||||||
|
Administrative expenses |
18,025 | 17,348 | ||||||
|
Total deductions |
860,728 | 639,821 | ||||||
|
Net increase in net assets available for benefits |
3,454,468 | 2,373,521 | ||||||
|
Net assets available for benefits: |
||||||||
|
Beginning of year |
16,936,745 | 14,563,224 | ||||||
|
End of year |
$ | 20,391,213 | $ | 16,936,745 | ||||
See accompanying notes to financial statements.
HOME FEDERAL SAVINGS BANK EMPLOYEES’
SAVINGS AND PROFIT SHARING PLAN
Notes to Financial Statements
December 31, 2017 and 2016
| (1) | Summary of Significant Accounting Policies | |
|
(a) |
Basis of Presentation |
|
|
The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles. |
||
|
(b) |
Use of Estimates |
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of net assets available for benefits and changes therein, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported changes in net assets available for benefits during the reporting period. Actual results could differ from those estimates.
|
(c) |
Custodian of Investments |
Effective, September 1, 2016, Alerus Financial, N.A. is the trustee and custodian of all Plan assets. TD Ameritrade Trust Corporation was the trustee and custodian of all Plan assets through August 31, 2016.
|
(d) |
Plan Administration |
Home Federal Savings Bank (the Company) is the administrator of the Plan. Effective, September 1, 2016, Alerus Retirement and Benefits performs the participant accounting. Alliance Benefit Group (ABG) performed the participant accounting through August 31, 2016.
|
(e) |
Investment Valuation and Income Recognition |
Investments are reported at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Plan’s Investment Committee determines the Plan’s valuation policies utilizing information provided by the investment advisers and custodians. See Note 4 for discussion of fair value measurements.
Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Net appreciation includes the Plan’s gains and losses on investments purchased and sold as well as held during the year.
|
(f) |
Notes Receivable from Participants |
Notes receivable from participants are measured at their unpaid principal balance plus any accrued but unpaid interest. Interest income is recorded on the accrual basis. Related fees are recorded as administrative expenses and are expensed when they are incurred. No allowance for credit losses has been recorded as of December 31, 2017 or 2016. If a participant ceases to make loan repayments and the plan administrator deems the participant loan to be in default, the participant loan balance is reduced and a benefit payment is recorded.
HOME FEDERAL SAVINGS BANK EMPLOYEES’
SAVINGS AND PROFIT SHARING PLAN
Notes to Financial Statements
December 31, 2017 and 2016
|
(1) |
Summary of Significant Accounting Policies (Continued) |
|
(g) |
Benefits |
Benefits are recorded when paid.
|
(h) |
Subsequent Events |
There were no subsequent events requiring adjustment to the financial statements or disclosure through June 14, 2018, the date that the Plan’s financial statements were issued.
|
(2) |
Description of the Plan |
The following description of the Plan provides only general information. Participants should refer to the Summary Plan Description for more complete information.
|
(a) |
General |
The Plan is a defined contribution plan, qualified under Section 401(a) of the Internal Revenue Code (IRC). The Plan includes 401(k) provisions, which allow participants to direct the Company to contribute a portion of their compensation to the Plan on a pretax and Roth basis through payroll deductions. The Plan is subject to the Employee Retirement Income Security Act of 1974 (ERISA).
Company employees who have attained the age of 18 are eligible to participate in the Plan, subject to entry dates. However, part-time, temporary, or seasonal employees (employees whose regularly scheduled service is less than 1,000 hours of service per computation period); leased employees; and reclassified employees are not entitled to participate in the Plan.
|
(b) |
Funding Policy |
Participants have the ability to contribute up to 50% of their monthly compensation on a pretax and Roth basis to the Plan. Participant contributions are subject to the Internal Revenue Service (IRS) maximum annual limits of $18,000 during 2017 and 2016. The Company matches 25% of each participant’s contribution not in excess of 8% of the participant’s annual salary. Participants over the age of 50 were allowed to contribute an additional $6,000 as a “catch-up” contribution during 2017 and 2016, as allowed by current tax law.
The Company may, in its sole discretion, contribute to the Plan an amount to be determined from year to year (the Non-Elective Contribution). Such contributions would be allocated to the accounts of participants in the ratio that each participant’s compensation for the plan year bears to the total compensation of all participants for the plan year. There were no such contributions during 2017 or 2016.
HOME FEDERAL SAVINGS BANK EMPLOYEES’
SAVINGS AND PROFIT SHARING PLAN
Notes to Financial Statements
December 31, 2017 and 2016
|
(2) |
Description of the Plan (Continued) |
|
(b) |
Funding Policy (Continued) |
New employees are automatically enrolled in the Plan on the first of the month following 30 days of employment unless the employee elects not to participate (Automatic Enrollment Provision). Automatic contributions for these new employees are initially deducted at a rate of 4% of the employee’s compensation and are increased in 1% increments on January 1 of each year up to a maximum total contribution of 12%. The Company matches 25% of these automatic contributions not in excess of 8% of the participant’s annual salary. The employee has the right at any time to decline participation in the Plan or change the amount of the automatic contribution up to the maximum allowed 50% of their monthly compensation.
The Plan allows for rollover contributions to be made to the Plan by eligible participants. These rollover contributions are eligible distributions from other tax-qualified plans or individual retirement accounts or annuities that participants elect to have invested in the Plan either by a direct rollover to the Plan or by a distribution followed by a contribution within sixty days of receipt.
|
(c) |
Participant Accounts |
Each participant’s account is credited with the participant’s contribution and allocations of the Company’s contribution and Plan earnings. Allocations are based on participant contributions or account balances, as defined. Participants may elect to have their contributions invested in the funds listed in the Plan’s provisions as they choose and may generally also transfer their balances daily among these funds.
|
(d) |
Vesting |
Participants are immediately vested in their contributions and the actual earnings thereon.
Employer contributions are subject to a three-year cliff vesting.
Forfeited amounts totaled $21,962 and $2,856 for 2017 and 2016, respectively, which will be used to reduce future employer match obligations or plan fees. Forfeitures of $2,575 and $5,090 were used to reduce employer contributions for 2017 and 2016, respectively.
|
(e) |
Voting Rights |
Each participant is entitled to exercise voting rights attributable to the shares allocated to his or her account and is notified by the trustee prior to the time that such rights are to be exercised. The trustee is not permitted to vote any allocated share for which instructions have not been given by a participant. The trustee is required, however, to vote any unallocated shares on behalf of the collective best interest of plan participants and beneficiaries.
HOME FEDERAL SAVINGS BANK EMPLOYEES’
SAVINGS AND PROFIT SHARING PLAN
Notes to Financial Statements
December 31, 2017 and 2016
|
(2) |
Description of the Plan (Continued) |
|
(f) |
Notes Receivable from Participants |
Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of their vested account balance. Loan terms range from 1 to 5 years, except loans used to purchase a primary residence, which may have a term up to 15 years. All loans are secured by the balance in the participant’s account and bear interest at a rate equal to the prime rate or prime rate plus 1%. Principal and interest payments must be made monthly.
|
(g) |
Risks and Uncertainties |
The Plan invests in various investment securities. Investment securities are exposed to various risks, such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, changes in the values of investment securities will occur in the near term that could materially affect participants’ account balances and the amounts reported in the statements of net assets available for benefits.
At December 31, 2017 and 2016, approximately 4% and 5% of the Plan’s net assets were invested in the common stock of HMN Financial, Inc, respectively. The underlying value of the HMN Financial, Inc. common stock is entirely dependent upon the performance of HMN Financial, Inc. and the market’s evaluation of such performance. It is at least reasonably possible that changes in the fair value of HMN Financial, Inc. common stock in the near term could materially affect participants’ account balances and the amounts reported in the statements of net assets available for benefits and the statements of changes in net assets available for benefits.
|
(h) |
Distributions |
Upon termination of employment for any reason, the vested portion of the participant’s account balance becomes fully payable. Distributions are paid in cash in either one lump sum or under installments.
|
(i) |
Participating Employers |
The Company is a member of a controlled group of corporations as defined in Section 414(b) of the IRC. All members of the controlled group participated in the Plan.
|
(j) |
Costs and Expenses |
Asset management fees ranging between 5 and 141 basis points are assessed annually on the average net asset values and are deducted from the individual funds. In addition, accounting and administrative fees totaling $18,025 and $17,348 were paid in 2017 and 2016, respectively.
|
(3) |
Plan Termination |
The Company, by action of its board of directors, may terminate the Plan. All participants at the time of such termination shall be 100% vested in their account balances and shall be entitled to a benefit equal to the value of their accounts as determined as of the valuation date following termination.
HOME FEDERAL SAVINGS BANK EMPLOYEES’
SAVINGS AND PROFIT SHARING PLAN
Notes to Financial Statements
December 31, 2017 and 2016
|
(4) |
Fair Value Measurements |
The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under Topic 820 are described as follows:
|
Level 1 |
Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access. |
|
Level 2 |
Inputs to the valuation methodology include: |
|
- |
Quoted prices for similar assets or liabilities in active markets |
|
- |
Quoted prices for identical or similar assets or liabilities in inactive markets |
|
- |
Inputs other than quoted prices that are observable for the asset or liability |
|
- |
Inputs that are derived principally from or corroborated by observable market data by correlation or other means. |
| If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. | ||
|
Level 3 |
Inputs to the valuation methodology are unobservable and significant to the fair market value measurement. |
The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.
Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the valuation methodologies used at December 31, 2017 and 2016.
|
● |
Cash equivalents – Valued at cost, which approximates fair value. |
|
● |
Stable value collective trust fund – A stable value fund that is composed primarily of fully benefit-responsive investment contracts that is valued at the net asset value of units of the bank collective trust. The net asset value is used as a practical expedient to estimate fair value. This practical expedient would not be used if it is determined to be probable that the fund will sell the investment for an amount different from the reported net asset value. Participant transactions (purchases and sales) may occur daily. If the Plan initiates a full redemption of the collective trust, the issuer reserves the right to require 12 months’ notification in order to ensure that securities liquidations will be carried out in an orderly business manner. |
|
● |
Common stock – Valued daily based on unadjusted quoted prices from national exchanges. |
|
● |
Mutual funds – Valued daily based on unadjusted quoted prices from national exchanges and commonly used third-party services. |
HOME FEDERAL SAVINGS BANK EMPLOYEES’
SAVINGS AND PROFIT SHARING PLAN
Notes to Financial Statements
December 31, 2017 and 2016
|
(4) |
Fair Value Measurements (Continued) |
The following tables set forth by level, within the fair value hierarchy, the Plan’s assets at fair value as of December 31, 2017 and 2016. Classification within the fair value hierarchy table is based on the lowest level of any input that is significant to the fair value measurement.
|
December 31, 2017 |
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|
Level 1 |
Level 2 |
Level 3 |
Total |
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|
Cash equivalents |
$ | 23,031 | $ | — | $ | — | $ | 23,031 | ||||||||
|
HMN Financial, Inc. common stock |
801,512 | — | — | 801,512 | ||||||||||||
|
Mutual funds |
17,359,759 | — | — | 17,359,759 | ||||||||||||
|
Total assets in the fair value hierarchy |
18,184,302 | — | — | 18,184,302 | ||||||||||||
|
Investments measured at net asset value (a) |
— | — | — | 2,022,342 | ||||||||||||
|
Investments measured at fair value |
$ | 18,184,302 | $ | — | $ | — | $ | 20,206,644 | ||||||||
|
December 31, 2016 |
||||||||||||||||
|
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
| Cash equivalents | $ | 12,544 | $ | — | $ | — | $ | 12,544 | ||||||||
|
HMN Financial, Inc. common stock |
873,757 | — | — | 873,757 | ||||||||||||
|
Mutual funds |
14,150,547 | — | — | 14,150,547 | ||||||||||||
|
Total assets in the fair value hierarchy |
15,036,848 | — | — | 15,036,848 | ||||||||||||
|
Investments measured at net asset value (a) |
— | — | — | 1,787,243 | ||||||||||||
|
Investments measured at fair value |
$ | 15,036,848 | $ | — | $ | — | $ | 16,824,091 | ||||||||
(a) In accordance with Subtopic 820-10, certain investments that were measured at net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the line items presented in the statement of net assets available for benefits.
HOME FEDERAL SAVINGS BANK EMPLOYEES’
SAVINGS AND PROFIT SHARING PLAN
Notes to Financial Statements
December 31, 2017 and 2016
|
(4) |
Fair Value Measurements (Continued) |
For the years ended December 31, 2017 and 2016, the Plan held no assets in which significant unobservable inputs (Level 3) were used in determining fair value. The Plan did not have any transfers between Levels 1 and 2 during the periods.
The following table summarizes investments for which fair value is measured using the net asset value per share practical expedient as of December 31, 2017 and 2016, respectively. There are not participant redemption restrictions for these investments; the redemption notice period is applicable only to the Plan.
|
December 31, 2017 |
Fair Value |
Unfunded Commitments |
Redemption Frequency (if Currently Eligible) |
Redemption Notice Period |
||||
|
Stable value collective trust fund |
$2,022,342 |
n/a |
Daily |
12 months |
|
December 31, 2016 |
Fair Value |
Unfunded Commitments |
Redemption Frequency (if Currently Eligible) |
Redemption Notice Period |
||||
|
Stable value collective trust fund |
$1,787,243 |
n/a |
Daily |
12 months |
|
(5) |
Income Tax Status |
The Company adopted a Volume Submitter Profit Sharing Plan with CODA which received a favorable opinion letter from the Internal Revenue Service on September 30, 2014, which stated that the Plan and related trust are designed in accordance with applicable sections of the Internal Revenue Code (IRC). The Plan has been amended since relying on the volume submitter opinion letter. However, the Plan administrator believes that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC.
U.S. generally accepted accounting principles require plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits in progress for any tax periods.
HOME FEDERAL SAVINGS BANK EMPLOYEES’
SAVINGS AND PROFIT SHARING PLAN
Notes to Financial Statements
December 31, 2017 and 2016
|
(6) |
Party in Interest Transactions |
The Plan engages in investment transactions involving the acquisition or disposition of HMN Financial, Inc. common stock. HMN Financial, Inc. is the holding company of Home Federal Savings Bank and is a party in interest. Also, certain Plan investments are shares of mutual funds managed by TD Ameritrade. Through August 31, 2016, TD Ameritrade was the trustee of the Plan as defined by the Summary Plan Document and a party in interest. In addition, certain Plan investments are shares of mutual funds managed by ABG. Through August 31, 2016, ABG was appointed as the third-party record-keeper of the Plan as defined by the Summary Plan Document and a party in interest. These transactions are covered by an exemption from the “prohibited transactions” provisions of ERISA and the IRC. Effective September 1, 2016, Alerus Financial, N.A. is the trustee and custodian of all Plan assets and performs the participant accounting.
|
(7) |
Reconciliation of Financial Statements to Form 5500 |
The following is a reconciliation of net assets available for benefits per the financial statements at December 31, 2017 and 2016 to Form 5500:
|
2017 |
2016 |
|||||||
|
Net assets available for benefits per the financial statements |
$ | 20,391,213 | $ | 16,936,745 | ||||
|
Add: Accrued expenses |
5,365 | 8,060 | ||||||
|
Less: Contributions receivable |
— | (3,421 | ) | |||||
|
Net assets available for benefits per Form 5500 |
$ | 20,396,578 | $ | 16,941,384 | ||||
The following is a reconciliation of changes in net assets available for benefits per the financial statements for the years ended December 31, 2017 and 2016 to Form 5500:
|
2017 |
2016 |
|||||||
|
Change in net assets available for benefits per the financial statements |
$ | 3,454,468 | $ | 2,373,521 | ||||
|
Adjustment to administrative expenses |
(2,695 | ) | 382 | |||||
|
Adjustment to contributions |
3,421 | 8,890 | ||||||
|
Change in net assets available for benefits per Form 5500 |
$ | 3,455,194 | $ | 2,382,793 | ||||
|
HOME FEDERAL SAVINGS BANK EMPLOYEES’ |
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|
SAVINGS AND PROFIT SHARING PLAN |
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EIN # 41-0318319 Plan #002 |
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|
Schedule H, Line 4i – Schedule of Assets (Held at End of Year) |
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|
December 31, 2017 |
|
Current |
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|
|
Identity of Issuer, Lessor or Similar Party |
Cost** |
value ** |
||||||||
|
American Funds AMCAP Fund A |
|
$ |
894,624 |
||||||||
|
American Funds Europacific Fund A |
2,262,043 |
||||||||||
|
American Funds Growth Fund A |
1,374,380 |
||||||||||
|
Baird Core Plus Bond Institutional Fund |
611,935 |
||||||||||
|
Blackrock Bond Fund Class A |
161,139 |
||||||||||
|
DFA Emerging Markets Value Fund |
248,174 |
||||||||||
|
Dodge & Cox Stock Fund |
2,332,404 |
||||||||||
|
Galliard/Wells Fargo Stable Value Fund M |
2,022,342 |
||||||||||
|
Goldman Sachs Small Cap Value Institutional Fund |
1,553,268 |
||||||||||
|
JP Morgan Mid Cap Value Institutional Fund |
293,469 |
||||||||||
|
JP Morgan Smart Retirement 2020 Select Fund |
61,503 |
||||||||||
|
JP Morgan Smart Retirement 2025 Select Fund |
183,370 |
||||||||||
|
JP Morgan Smart Retirement 2030 Select Fund |
169,393 |
||||||||||
|
JP Morgan Smart Retirement 2035 Select Fund |
183,792 |
||||||||||
|
JP Morgan Smart Retirement 2040 Select Fund |
263,851 |
||||||||||
|
JP Morgan Smart Retirement 2045 Select Fund |
55,752 |
||||||||||
|
JP Morgan Smart Retirement 2050 Select Fund |
24,888 |
||||||||||
|
JP Morgan Smart Retirement 2055 Select Fund |
31,768 |
||||||||||
|
PIMCO Commodities Plus Strategy Fund |
89,509 |
||||||||||
|
PIMCO Global Bond Fund |
13,970 |
||||||||||
|
PIMCO Total Return Fund |
2 |
||||||||||
|
T. Rowe Price Mid Cap Growth Advisors Fund |
976,139 |
||||||||||
|
Vanguard 500 Index Fund Admiral Shares |
1,862,136 |
||||||||||
|
Vanguard Inflation Protected Securities Fund |
120,094 |
||||||||||
|
Vanguard Mid Cap Index Fund Admiral Shares |
1,419,192 |
||||||||||
|
Vanguard Small Cap Index Fund Admiral Shares |
249,284 |
||||||||||
|
Vanguard Wellesley Fund |
1,250,882 |
||||||||||
|
Voya Real Estate Fund Class A |
90,750 |
||||||||||
|
Wells Fargo Government Securities Fund |
582,048 |
||||||||||
|
Fidelity Government Daily Prime Money Market Account |
22,010 |
||||||||||
|
Cash |
4 |
||||||||||
|
* |
TD Bank USA Money Market Account |
1,017 |
|||||||||
|
* |
HMN Financial, Inc. Common Stock |
801,512 |
|||||||||
|
Total investments |
20,206,644 |
||||||||||
|
Notes receivable from participants (3.25% - 4.25%) |
|||||||||||
|
(maturing 2018 through 2023) |
- |
191,278 |
|||||||||
|
Total assets |
|
$ |
20,397,922 |
||||||||
|
* |
Party in interest. |
||||||||||
|
** |
Investments are participant directed and as such cost information is not required. |
||||||||||
See accompanying report of independent registered public accounting firm.
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
HOME FEDERAL SAVINGS BANK
EMPLOYEES' SAVINGS AND PROFIT SHARING PLAN
Date: June 14, 2018 By: /s/ Jon Eberle
Jon Eberle
Title: Principal Financial Officer,
Home Federal Savings Bank
EXHIBIT INDEX
Exhibit
Number
23.1 Consent of Independent Registered Public Accounting Firm – Cliftonlarsonallen, LLP