Note 16 - Business Segments

9 Months Ended

Sep. 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 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 nine months ended September 30, 2016:
Interest income - external customers	$	20,638		0			0			20,638
Non-interest income - external customers		6,004		0			0			6,004
Intersegment non-interest income		158		5,362			(5,520	)		0
Interest expense		728		445			0			1,173
Other non-interest expense		17,510		573			(158	)		17,925
Income tax expense		3,471		(322	)		0			3,149
Net income		5,362		4,666			(5,362	)		4,666
Total assets		684,635		83,570			(82,538	)		685,667
At or for the nine months ended September 30, 2015:
Interest income - external customers	$	15,344		0			0			15,344
Non-interest income - external customers		5,692		0			0			5,692
Intersegment interest income		0		1			(1	)		0
Intersegment non-interest income		153		2,318			(2,471	)		0
Interest expense		707		408			(1	)		1,114
Other non-interest expense		16,887		466			(153	)		17,200
Income tax expense		1,516		(421	)		0			1,095
Net income		2,318		1,866			(2,318	)		1,866
Total assets		617,870		78,354			(77,307	)		618,917
At or for the quarter ended September 30, 2016:
Interest income - external customers	$	6,954		0			0			6,954
Non-interest income - external customers		2,147		0			0			2,147
Intersegment non-interest income		53		1,718			(1,771	)		0
Interest expense		255		149			0			404
Other non-interest expense		6,049		205			(53	)		6,201
Income tax expense		1,052		(50	)		0			1,002
Net income		1,718		1,414			(1,718	)		1,414
Total assets		684,635		83,570			(82,538	)		685,667
At or for the quarter ended September 30, 2015:
Interest income - external customers	$	5,390		0			0			5,390
Non-interest income - external customers		2,231		0			0			2,231
Intersegment non-interest income		51		1,007			(1,058	)		0
Interest expense		231		166			0			397
Other non-interest expense		5,832		188			(51	)		5,969
Income tax expense		657		(166	)		0			491
Net income		1,007		820			(1,007	)		820
Total assets		617,870		78,354			(77,307	)		618,917