Note 16 - Business Segments

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

(

1

6

)

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, 201 8 :
Interest income - external customers	$	14,614		0			0			14,614
Non-interest income - external customers		3,830		0			0			3,830
Intersegment non-interest income		105		3,464			(3,569	)		0
Interest expense		996		0			0			996
Other non-interest expense		12,616		356			(105	)		12,867
Income tax expense		1,303		(64	)		0			1,239
Net income		3,464		3,172			(3,464	)		3,172
Total assets		726,121		81,590			(81,426	)		726,285
At or for the six months ended June 30, 201 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 quarter ended June 30, 201 8 :
Interest income - external customers	$	7,456		0			0			7,456
Non-interest income - external customers		2,054		0			0			2,054
Intersegment non-interest income		52		1,870			(1,922	)		0
Interest expense		526		0			0			526
Other non-interest expense		6,191		174			(52	)		6,313
Income tax expense		680		(31	)		0			649
Net income		1,870		1,727			(1,870	)		1,727
Total assets		726,121		81,590			(81,426	)		726,285
At or for 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