Note 16 - Business Segments

9 Months Ended

Sep. 30, 2018

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, 2018:
Interest income - external customers	$	22,584		0			0			22,584
Non-interest income - external customers		5,766		0			0			5,766
Intersegment non-interest income		164		6,328			(6,492	)		0
Interest expense		1,583		0			0			1,583
Non-interest expense		18,703		542			(164	)		19,081
Income tax expense		2,382		(98	)		0			2,284
Net income		6,328		5,884			(6,328	)		5,884
Total assets		737,289		79,228			(79,072	)		737,445
At or for the nine months ended September 30, 2017:
Interest income - external customers	$	20,913		0			0			20,913
Non-interest income - external customers		5,695		0			0			5,695
Intersegment non-interest income		158		4,596			(4,754	)		0
Interest expense		1,056		306			0			1,362
Non-interest expense		18,653		550			(158	)		19,045
Income tax expense		3,043		(277	)		0			2,766
Net income		4,596		4,017			(4,596	)		4,017
Total assets		715,827		79,516			(78,733	)		716,610
At or for the quarter ended September 30, 2018:
Interest income - external customers	$	7,970		0			0			7,970
Non-interest income - external customers		1,936		0			0			1,936
Intersegment non-interest income		59		2,864			(2,923	)		0
Interest expense		587		0			0			587
Non-interest expense		6,087		186			(59	)		6,214
Income tax expense		1,079		(34	)		0			1,045
Net income		2,864		2,712			(2,864	)		2,712
Total assets		737,289		79,228			(79,072	)		737,445
At or for the quarter ended September 30, 2017:
Interest income - external customers	$	7,255		0			0			7,255
Non-interest income - external customers		1,909		0			0			1,909
Intersegment non-interest income		53		1,960			(2,013	)		0
Interest expense		416		77			0			493
Non-interest expense		6,124		188			(53	)		6,259
Income tax expense		1,298		(85	)		0			1,213
Net income		1,960		1,780			(1,960	)		1,780
Total assets		715,827		79,516			(78,733	)		716,610