Note 16 - Business Segments

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

(

)

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, 20 1 7 :
Interest income - external customers	$	13,658		0			0			13,658
Non-interest income - external customers		3,786		0			0			3,786
Intersegment non-interest income		105		2,636			(2,741	)		0
Interest expense		640		229			0			869
Other non-interest expense		12,529		362			(105	)		12,786
Income tax expense		1,745		(192	)		0			1,553
Net income		2,636		2,237			(2,636	)		2,237
Total assets		724,407		84,826			(84,050	)		725,183

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 fo r the quarter ended June 30, 201 7 :
Interest income - external customers	$	6,999		0			0			6,999
Non-interest income - external customers		1,906		0			0			1,906
Intersegment non-interest income		52		1,221			(1,273	)		0
Interest expense		345		116			0			461
Other non-interest expense		6,316		175			(52	)		6,439
Income tax expense		806		(94	)		0			712
Net income		1,221		1,024			(1,221	)		1,024
Total assets		724,407		84,826			(84,050	)		725,183

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