Note 16 - Business Segments

9 Months Ended

Sep. 30, 2019

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, 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 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, 2019:
Interest income - external customers	$	24,029			2			(2	)		24,029
Non-interest income - external customers		5,939			0			0			5,939
Intersegment non-interest income		176			7,015			(7,191	)		0
Interest expense		2,427			0			(2	)		2,425
Provision for loan losses		(1,452	)		0			0			(1,452	)
Non-interest expense		19,363			574			(176	)		19,761
Income tax expense		2,791			(114	)		0			2,677
Net income		7,015			6,557			(7,015	)		6,557
Total assets		762,445			91,388			(90,605	)		763,228
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
Provision for loan losses		(482	)		0			0			(482	)
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 quarter ended September 30, 2019:
Interest income - external customers	$	7,998			2			(2	)		7,998
Non-interest income - external customers		2,227			0			0			2,227
Intersegment non-interest income		59			2,235			(2,294	)		0
Interest expense		908			0			(2	)		906
Provision for loan losses		(420	)		0			0			(420	)
Non-interest expense		6,604			202			(59	)		6,747
Income tax expense		957			(41	)		0			916
Net income		2,235			2,076			(2,235	)		2,076
Total assets		762,445			91,388			(90,605	)		763,228
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
Provision for loan losses		(652	)		0			0			(652	)
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