Note 16 - Business Segments

9 Months Ended

Sep. 30, 2020

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, 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, 2020:
Interest income - external customers	$	23,676			0			0			23,676
Non-interest income - external customers		10,461			0			0			10,461
Intersegment interest income		0			32			(32	)		0
Intersegment non-interest income		175			7,609			(7,784	)		0
Interest expense		2,325			0			(32	)		2,293
Provision for loan losses		1,548			0			0			1,548
Non-interest expense		19,863			562			(175	)		20,250
Income tax expense		2,967			(98	)		0			2,869
Net income		7,609			7,177			(7,609	)		7,177
Total assets		897,694			101,308			(100,550	)		898,452
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 quarter ended September 30, 2020:
Interest income - external customers	$	7,949			0			0			7,949
Non-interest income - external customers		4,396			0			0			4,396
Intersegment interest income		0			9			(9	)		0
Intersegment non-interest income		58			3,251			(3,309	)		0
Interest expense		665			0			(9	)		656
Provision for loan losses		770			0			0			770
Non-interest expense		6,460			194			(58	)		6,596
Income tax expense		1,257			(35	)		0			1,222
Net income		3,251			3,101			(3,251	)		3,101
Total assets		897,694			101,308			(100,550	)		898,452
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