Note 16 - Business Segments

3 Months Ended

Mar. 31, 2020

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 quarter ended March 31, 20 20 :
Interest income - external customers	$	7,844		0			0			7,844
Non-interest income - external customers		2,471		0			0			2,471
Intersegment interest income		0		15			(15	)		0
Intersegment non-interest income		59		1,524			(1,583	)		0
Interest expense		907		0			(15	)		892
Provision for loan losses		460		0			0			460
Non-interest expense		6,874		186			(59	)		7,001
Income tax expense (benefit)		609		(32	)		0			577
Net income		1,524		1,385			(1,524	)		1,385
Total assets		783,615		95,197			(94,612	)		784,200
At or for the quarter ended March 31, 2019:
Interest income - external customers	$	7,732		0			0			7,732
Non-interest income - external customers		1,691		0			0			1,691
Intersegment non-interest income		59		1,762			(1,821	)		0
Interest expense		690		0			0			690
Provision for loan losses		27		0			0			27
Non-interest expense		6,332		173			(59	)		6,446
Income tax expense (benefit)		671		(31	)		0			640
Net income		1,762		1,620			(1,762	)		1,620
Total assets		721,736		85,546			(84,537	)		722,745