Note 16 - Business Segments

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

(16)

Business Segments

The Bank has been identified as a reportable operating segment in accordance with the provisions of ASC 280. HMN did not meet the quantitative thresholds for determining reportable segments and, therefore, is included in the “Other” category.

The Company evaluates performance and allocates resources based on the segment’s net income, return on average assets and equity. Each corporation is managed separately with its own officers and board of directors, some of whom may overlap between the corporations.

The following table sets forth certain information about the reconciliation of reported profit or loss and assets for each of the Company’s reportable segments.

(Dollars in thousands)	Home Federal Savings Bank		Other			Eliminations			Consolidated Total
At or for the six months ended June 30, 2016:
Interest income - external customers	$	13,684		0			0			13,684
Non-interest income - external customers		3,857		0			0			3,857
Intersegment non-interest income		105		3,644			(3,749	)		0
Interest expense		473		296			0			769
Other non-interest expense		11,461		368			(105	)		11,724
Income tax expense		2,419		(272	)		0			2,147
Net income		3,644		3,252			(3,644	)		3,252
Total assets		652,352		82,368			(81,335	)		653,385
At or for the six months ended June 30, 201 5 :
Interest income - external customers	$	9,954		0			0			9,954
Non-interest income - external customers		3,461		0			0			3,461
Intersegment interest income		0		1			(1	)		0
Intersegment non-interest income		102		1,311			(1,413	)		0
Interest expense		476		242			(1	)		717
Non-interest expense		11,054		279			(102	)		11,231
Income tax expense		860		(256	)		0			604
Net income		1,311		1,046			(1,311	)		1,046
Total assets		562,957		77,331			(76,287	)		564,001
At or for the quarter ended June 30, 201 6 :
Interest income - external customers	$	7,159		0			0			7,159
Non-interest income - external customers		2,102		0			0			2,102
Intersegment non-interest income		52		1,675			(1,727	)		0
Interest expense		247		148			0			395
Other non-interest expense		5,900		185			(52	)		6,033
Income tax expense		1,110		(136	)		0			974
Net income		1,675		1,478			(1,675	)		1,478
Total assets		652,352		82,368			(81,335	)		653,385
At or for the quarter ended June 30, 201 5 :
Interest income - external customers	$	5,070		0			0			5,070
Non-interest income - external customers		1,867		0			0			1,867
Intersegment interest income		0		1			(1	)		0
Intersegment non-interest income		51		720			(771	)		0
Interest expense		227		165			(1	)		391
Non-interest expense		5,751		100			(51	)		5,800
Income tax expense		473		(129	)		0			344
Net income		720		585			(720	)		585
Total assets		562,957		77,331			(76,287	)		564,001