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Wiki	Wiki Summary
Companys, procés a Catalunya	Companys, procés a Catalunya (Spanish: Companys, proceso a Cataluña) is a 1979 Spanish Catalan drama film directed by Josep Maria Forn, based on the last months of the life of the President of Catalonia, Lluís Companys, in which he shows his detention by the Nazis and his subsequent execution by the Spanish Francoists. It competed in the Un Certain Regard section at the 1979 Cannes Film Festival.
Surgery	Surgery is a medical or dental specialty that uses operative manual and instrumental techniques on a person to investigate or treat a pathological condition such as a disease or injury, to help improve bodily function, appearance, or to repair unwanted ruptured areas.\nThe act of performing surgery may be called a surgical procedure, operation, or simply "surgery".
False positives and false negatives	A false positive is an error in binary classification in which a test result incorrectly indicates the presence of a condition (such as a disease when the disease is not present), while a false negative is the opposite error, where the test result incorrectly indicates the absence of a condition when it is actually present. These are the two kinds of errors in a binary test, in contrast to the two kinds of correct result (a true positive and a true negative).
Negative feedback	Negative feedback (or balancing feedback) occurs when some function of the output of a system, process, or mechanism is fed back in a manner that tends to reduce the fluctuations in the output, whether caused by changes in the input or by other disturbances.\nWhereas positive feedback tends to lead to instability via exponential growth, oscillation or chaotic behavior, negative feedback generally promotes stability.
Negative stain	In microscopy, negative staining is an established method, often used in diagnostic microscopy, for contrasting a thin specimen with an optically opaque fluid. In this technique, the background is stained, leaving the actual specimen untouched, and thus visible.
Mortgage loan	A mortgage loan or simply mortgage (), in civil law jurisdicions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any purpose while putting a lien on the property being mortgaged. The loan is "secured" on the borrower's property through a process known as mortgage origination.
Fiscal policy of the Philippines	Fiscal policy are "measures employed by governments to stabilize the economy, specifically by manipulating the levels and allocations of taxes and government expenditures. Fiscal measures are frequently used in tandem with monetary policy to achieve certain goals." In the Philippines, this is characterized by continuous and increasing levels of debt and budget deficits, though there have been improvements in the last few years.The Philippine government's main source of revenue are taxes, with some non-tax revenue also being collected.
Golden Rule (fiscal policy)	The Golden Rule is a guideline for the operation of fiscal policy. The Golden Rule states that over the economic cycle, the Government will borrow only to invest and not to fund current spending.
Economic policy	The economy of governments covers the systems for setting levels of taxation, government budgets, the money supply and interest rates as well as the labour market, national ownership, and many other areas of government interventions into the economy.\nMost factors of economic policy can be divided into either fiscal policy, which deals with government actions regarding taxation and spending, or monetary policy, which deals with central banking actions regarding the money supply and interest rates.
Conditions of Learning	Conditions of Learning, by Robert M. Gagné, was originally published in 1965 by Holt, Rinehart and Winston and describes eight kinds of learning and nine events of instruction. This theory of learning involved two steps.
Zero Days	Zero Days is a 2016 American documentary film directed by Alex Gibney. It was selected to compete for the Golden Bear at the 66th Berlin International Film Festival.
Devasahayam Pillai	Devasahayam Pillai (born Neelakanta Pillai and baptized as Lazarus; 23 April 1712 – 14 January 1752) was an Indian layman and martyr of the Catholic Church. He was canonized as a saint of the church by Pope Francis on 15 May 2022.
Net interest income	Net interest income (NII) is the difference between revenues generated by interest-bearing assets and the cost of servicing (interest-burdened) liabilities. For banks, the assets typically include commercial and personal loans, mortgages, construction loans and investment securities.
Population and Environment	Population and Environment is a peer-reviewed academic journal covering research on the bi-directional links between population, natural resources, and the natural environment. The editor-in-chief is Dr Elizabeth Fussell, associate professor of population studies and environment and society at Brown University.
Social environment	The social environment, social context, sociocultural context or milieu refers to the immediate physical and social setting in which people live or in which something happens or develops. It includes the culture that the individual was educated or lives in, and the people and institutions with whom they interact.
Prepayment for service	Prepaid refers to services paid for in advance. Examples include postage stamps, attorneys, tolls, public transit cards like the Greater London Oyster card, pay as you go cell phones, and stored-value cards such as gift cards and preloaded credit cards.
Bit numbering	In computing, bit numbering is the convention used to identify the bit positions in a binary number.\n\n\n== Bit significance and indexing ==\n\nIn computing, the least significant bit (LSB) is the bit position in a binary integer representing the binary 1s place of the integer.
Statistical significance	In statistical hypothesis testing, a result has statistical significance when it is very unlikely to have occurred given the null hypothesis. More precisely, a study's defined significance level, denoted by \n \n \n \n α\n \n \n {\displaystyle \alpha }\n , is the probability of the study rejecting the null hypothesis, given that the null hypothesis is true; and the p-value of a result, \n \n \n \n p\n \n \n {\displaystyle p}\n , is the probability of obtaining a result at least as extreme, given that the null hypothesis is true.
Decline of newspapers	The decline of newspapers has been debated, as the industry has faced slumping ad sales, the loss of much classified advertising and precipitous drops in circulation. In recent years, newspapers' weekday circulation has fallen 7% and Sunday circulation 4% in the United States, their greatest declines since 2010.
American decline	American decline is the idea that the United States of America is diminishing in power geopolitically, militarily, financially, economically, demographically, socially, morally, spiritually, culturally, in matters of healthcare, and/or on environmental issues. There has been debate over the extent of the decline, and whether it is relative or absolute.
White demographic decline	White demographic decline is a decrease in the white populace as a percentage of the total population in a city, state, subregion, or nation. It has been recorded in a number of countries and smaller jurisdictions.
University of Minnesota	The University of Minnesota, Twin Cities (UMN, the U of M, or Minnesota) is a public land-grant research university in the Twin Cities of Minneapolis and Saint Paul, Minnesota. The Twin Cities campus comprises locations in Minneapolis and Falcon Heights, a suburb of St.
Oracle Financial Services Software	Oracle Financial Services Software Limited (OFSS) is a subsidiary of Oracle Corporation. It is a retail banking, corporate banking, and insurance technology solutions provider for the banking industry.
Financial condition report	In accounting, a financial condition report (FCR) is a report on the solvency condition of an insurance company that takes into account both the current financial status, as reflected in the balance sheet, and an assessment of the ability of the company to survive future risk scenarios. Risk assessment in an FCR involves dynamic solvency testing, a type of dynamic financial analysis that simulates management response to risk scenarios, to test whether a company could remain solvent in the face of deteriorating economic conditions or major disasters.
Financial statement	Financial statements (or financial reports) are formal records of the financial activities and position of a business, person, or other entity.\nRelevant financial information is presented in a structured manner and in a form which is easy to understand.
Creative limitation	Creative limitation is the concept of how purposely limiting oneself can actually drive creativity. At a 2013 TED conference, artist Phil Hansen made several remarks concerning the value of limitations, among them that "We need to first be limited in order to become limitless,” and “If you treat the problems as possibilities, life will start to dance with you in the most amazing ways.”Creative limitation can also be thought of as a way to achieve a novel effect or goal that is not otherwise possible using conventional, readily accessible, methods.
Limitation periods in the United Kingdom	In the United Kingdom, there are time limits after which court actions cannot be taken in certain types of cases. These differ across the three legal systems in the United Kingdom.
Climate change	Contemporary climate change includes both global warming and its impacts on Earth's weather patterns. There have been previous periods of climate change, but the current changes are distinctly more rapid and not due to natural causes.
Single-player video game	A single-player video game is a video game where input from only one player is expected throughout the course of the gaming session. A single-player game is usually a game that can only be played by one person, while "single-player mode" is usually a game mode designed to be played by a single player, though the game also contains multi-player modes.Most modern console games and arcade games are designed so that they can be played by a single player; although many of these games have modes that allow two or more players to play (not necessarily simultaneously), very few actually require more than one player for the game to be played.
State Bank of Vietnam	The State Bank of Vietnam (Vietnamese: Ngân hàng Nhà nước Việt Nam) is the central bank of Vietnam. It currently holds an about 65% stake of VietinBank - the country's largest listed bank by capital.
Money market fund	A money market fund (also called a money market mutual fund) is an open-ended mutual fund that invests in short-term debt securities such as US Treasury bills and commercial paper. Money market funds are managed with the goal of maintaining a highly stable asset value through liquid investments, while paying income to investors in the form of dividends.
Measurement uncertainty	In metrology, measurement uncertainty is the expression of the statistical dispersion of the values attributed to a measured quantity. All measurements are subject to uncertainty and a measurement result is complete only when it is accompanied by a statement of the associated uncertainty, such as the standard deviation.

Risk Factors
HMN FINANCIAL INC ITEM 1A RISK FACTORS Like all financial companies, the Company’s business and results of operations are subject to a number of risks, many of which are outside of the Company’s control
In addition to the other information in this report, readers should carefully consider that the following important factors, among others, could materially impact the Company’s business and future results of operations
Changes in interest rates could negatively impact the Company’s results of operations
The earnings of the Company are primarily dependent on net interest income, which is the difference between interest earned on loans and investments, and interest paid on interest-bearing liabilities such as deposits and borrowings
Interest rates are highly sensitive to many factors, including government monetary and fiscal policies and domestic and international economic and political conditions
Conditions such as inflation, recession, unemployment, money supply, government borrowing and other factors beyond management’s control may also affect interest rates
If the Company’s interest-earning assets mature, reprice or prepay more quickly than interest-bearing liabilities in a given period, a decrease in market interest rates could adversely affect net interest income
Likewise, if interest-bearing liabilities mature or reprice, or, in the case of deposits, are withdrawn by the accountholder, more quickly than interest-earning assets in a given period, an increase in market interest rates could adversely affect net interest income
Given the Company’s current mix of assets and liabilities, a declining interest rate environment would negatively impact the Company’s results of operations
Fixed rate loans increase the Company’s exposure to interest rate risk in a rising rate environment because interest-bearing liabilities would be subject to repricing before assets become subject to repricing
Adjustable rate loans decrease the risks to a lender associated with changes in interest rates but involve other risks
As interest rates rise, the payment by the borrower rises to the extent permitted by the terms of the loan, and the increased payment increases the potential for default
At the same time, for secured loans, the marketability of the underlying collateral may be adversely affected by higher interest rates
In a declining interest rate environment, there is likely to be an increase in prepayment activity on loans as the borrowers refinance their loans at lower interest rates
Under these circumstances, the Company’s results of operations could be negatively impacted
Changes in interest rates also can affect the value of loans, investments and other interest-rate sensitive assets including mortgage servicing rights, and the Company’s ability to realize gains on the sale or resolution of assets
This type of income can vary significantly from quarter-to-quarter and year-to-year based on a number of different factors, including the interest rate environment
An increase in interest rates that adversely affects the ability of borrowers to pay the principal or interest on loans may lead to an increase in non-performing assets and increased loan loss reserve requirements that could have a material adverse effect on the Company’s results of operations
29 _________________________________________________________________ [94]Table of Contents Changes in interest rates or prepayment speeds could negatively impact the value of capitalized mortgage servicing rights
The capitalization, amortization and impairment of mortgage servicing rights are subject to significant estimates
These estimates are based upon loan types, note rates and prepayment speed assumptions
Changes in interest rates or prepayment speeds may have a material effect on the net carrying value of mortgage servicing rights
In a declining interest rate environment, prepayment speed assumptions will increase and result in an acceleration in the amortization of the mortgage servicing rights as the assumed underlying portfolio declines and also may result in impairment as the value of the mortgage servicing rights declines
Regional economic changes in the Company’s markets could adversely impact results from operations
Like all banks, the Company is subject to the effects of any economic downturn, and in particular a significant decline in home values or reduced commercial development in the Company’s markets could have a negative effect on results of operations
The Company’s success depends primarily on the general economic conditions in the counties in which the Company conducts business, and in the southern Minnesota and northern Iowa area in general
Unlike larger banks that are more geographically diversified, the Company provides banking and financial services to customers primarily in the southern Minnesota counties of Fillmore, Freeborn, Houston, Mower, Olmsted and Winona and portions of Steele, Dodge, Goodhue and Wabasha counties, as well as Marshall and Tama counties in Iowa
The local economic conditions in these market areas have a significant impact on the Company’s ability to originate loans, the ability of the borrowers to repay these loans and the value of the collateral securing these loans
A significant decline in the general economic conditions caused by inflation, recession, unemployment or other factors beyond the Company’s control would affect these local economic conditions and could adversely affect the Company’s financial condition and results of operations
Additionally, because the Company has a significant amount of commercial real estate loans, decreases in tenant occupancy may also have a negative effect on the ability of many of the Company’s borrowers to make timely repayments of their loans, which would have an adverse impact on the Company’s earnings
A significant decline in home values would likely lead to increased delinquencies and defaults in both the consumer home equity loan and residential real estate loan portfolios and result in increased losses in these portfolios
New or revised tax, accounting and other laws, regulations, rules and standards could significantly impact strategic initiatives, results of operations and financial condition
The financial services industry is highly regulated and laws and regulations may sometimes impose significant limitations on operations
These limitations, and sources of potential liability for the violation of such laws and regulations, are described in Item 1 of Part I of this report under the heading “Business — Regulation and Supervision
” These regulations, along with the currently existing tax and accounting laws, regulations, rules and standards, control the methods by which financial institutions conduct business; implement strategic initiatives, as well as past, present, and contemplated tax planning; and govern financial disclosures
These laws, regulations, rules, and standards are constantly evolving and may change significantly over time
The nature, extent, and timing of the adoption of significant new laws, changes in existing laws, or repeal of existing laws may have a material impact on the Company’s results of operations and financial condition, the effects of which are impossible to predict at this time
The extended disruption of vital infrastructure could negatively impact the Company’s results of operations and financial condition
The Company’s operations depend upon, among other things, its technological and physical infrastructure, including its equipment and facilities
Extended disruption of its vital infrastructure by fire, power loss, natural disaster, telecommunications failure, computer hacking and viruses, terrorist activity or the domestic and foreign 30 _________________________________________________________________ [95]Table of Contents response to such activity, or other events outside of the Company’s control, could have a material adverse impact either on the financial services industry as a whole, or on the Company’s business, results of operations, and financial condition
Strong competition within the Company’s market area may limit profitability
The Company faces significant competition both in attracting deposits and in the origination of loans, as described under the heading “Business — Competition
” Mortgage bankers, commercial banks, credit unions and other savings institutions, which have offices in the Bank’s market area have historically provided most of the Company’s competition for deposits; however, the Company also competes with financial institutions that operate through Internet banking operations throughout the continental United States
In addition, and particularly in times of high interest rates, the Company faces additional and significant competition for funds from money market and mutual funds, securities firms, commercial banks, credit unions and other savings institutions located in the same communities and those that operate through Internet banking operations throughout the continental United States
Many competitors have substantially greater financial and other resources than the Company
Moreover, the Company may face increased competition in the origination of loans if competing thrift institutions convert to stock form, because such converting thrifts would likely seek to invest their new capital into loans
Finally, credit unions do not pay federal or state income taxes and are subject to fewer regulatory constraints than savings banks and as a result, they may enjoy a competitive advantage over the Company
The Bank competes for loans principally on the basis of the interest rates and loan fees it charges, the types of loans it originates and the quality of services it provides to borrowers
This advantage places significant competitive pressure on the prices of loans and deposits
Loss of large checking and money market deposit customers could increase cost of funds and have a negative effect on results of operations
The Company has a number of large deposit customers that maintain balances in checking and money market accounts at the Bank
The ability to attract these types of deposits has a positive effect on the Company’s net interest margin as they provide a relatively low cost of funds to the Company compared to certificates of deposits or advances
If these depositors were to withdraw these funds and the Bank were not able to replace them with similar types of deposits, the Banks cost of funds would increase and the Company’s results of operation would be negatively impacted
This report, other reports filed by the Company with the Securities and Exchange Commission, and the Company’s proxy statement may contain “forward-looking” statements that deal with future results, plans or performance
In addition, the Company’s management may make such statements orally to the media, or to securities analysts, investors or others
Forward-looking statements deal with matters that do not relate strictly to historical facts
Words such as “anticipate”, “believe”, “expect”, “intend”, “would”, “could” and similar expressions, as they relate to us, are intended to identify such forward-looking statements
The Company’s future results may differ materially from historical performance and forward-looking statements about the Company’s expected financial results or other plans are subject to a number of risks and uncertainties
These include but are not limited to possible legislative changes and adverse economic, business and competitive developments such as shrinking interest margins; deposit outflows; reduced demand for financial services and loan products; changes in accounting policies and guidelines, or monetary and fiscal policies of the federal government; changes in credit and other risks posed by the Company’s loan and investment portfolios; changes in loan repayment and prepayment patterns; changes in loan terms and conditions; technological, computer-related or operational difficulties; adverse changes in securities markets; results of litigation or other significant uncertainties