Note 23 - Business Segments

12 Months Ended

Dec. 31, 2019

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 9 :
Interest income – external customers	$	31,890			0			0			31,890
Non-interest income – external customers		8,455			0			0			8,455
Intersegment interest income		0			21			(21	)		0
Intersegment non-interest income		234			8,627			(8,861	)		0
Interest expense		3,360			0			(21	)		3,339
Provision for loan losses		(1,216	)		0			0			(1,216	)
Non-interest expense		26,565			774			(234	)		27,105
Income tax expense		3,243			81			0			3,324
Net income		8,627			7,793			(8,627	)		7,793
Total assets		777,083			92,863			(92,307	)		777,639
At or for the year ended December 31, 2018:
Interest income – external customers	$	30,381			0			0			30,381
Non-interest income – external customers		7,714			0			0			7,714
Intersegment non-interest income		222			8,800			(9,022	)		0
Interest expense		2,233			0			0			2,233
Provision for loan losses		(649	)		0			0			(649	)
Non-interest expense		24,897			712			(222	)		25,387
Income tax expense (benefit)		3,036			(148	)		0			2,888
Net income		8,800			8,236			(8,800	)		8,236
Total assets		710,281			83,380			(81,346	)		712,315
At or for the year ended December 31, 2017:
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
Provision for loan losses		(523	)		0			0			(523	)
Non-interest expense		24,722			742			(210	)		25,254
Income tax expense (benefit)		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