Note 23 - Business Segments

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE

2

3

Business Segments

The Bank has been identified as a reportable operating segment in accordance with the provisions of

ASC

280.

HMN, the holding company, did

not

meet the quantitative thresholds for a reportable segment 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 return on average equity. Each corporation is managed separately with its own officers and board of directors.

The following table sets forth certain information about the reconciliations of reported net

income 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 year ended December 31, 201 7 :
Interest income – external customers	$	27,680		0			0			27,680
Non-interest income – external customers		7,654		0			0			7,654
Intersegment non-interest income		210		4,879			(5,089	)		0
Interest expense		1,491		306			0			1,797
Non-interest expense		24,722		742			(210	)		25,254
Income tax expense (b enefit )		4,976		(574	)		0			4,402
Net income		4,879		4,404			(4,879	)		4,404
Total assets		722,532		79,254			(79,101	)		722,685
At or for the year ended December 31, 2016:
Interest income – external customers	$	27,349		0			0			27,349
Non-interest income – external customers		8,201		0			0			8,201
Intersegment interest income		0		1			(1	)		0
Intersegment non-interest income		210		7,148			(7,358	)		0
Interest expense		1,004		589			0			1,593
Non-interest expense		23,572		768			(210	)		24,130
Income tax expense (benefit)		4,680		(558	)		0			4,122
Net income		7,148		6,350			(7,148	)		6,350
Total assets		681,257		82,222			(81,456	)		682,023
At or for the year ended December 31, 201 5:
Interest income – external customers	$	21,453		0			0			21,453
Non-interest income – external customers		7,653		0			0			7,653
Intersegment interest income		0		1			(1	)		0
Intersegment non-interest income		204		3,629			(3,833	)		0
Interest expense		937		571			(1	)		1,507
Non-interest expense		22,760		640			(204	)		23,196
Income tax expense (benefit)		2,148		(537	)		0			1,611
Net income		3,629		2,956			(3,629	)		2,956
Total assets		642,151		78,162			(77,152	)		643,161