Note 16 - Business Segments

9 Months Ended

Sep. 30, 2021

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, 2021:
Interest income - external customers	$	24,384			0			0			24,384
Non-interest income - external customers		11,047			1			0			11,048
Intersegment interest income		0			22			(22	)		0
Intersegment non-interest income		176			12,054			(12,230	)		0
Interest expense		1,245			0			(22	)		1,223
Provision for loan losses		(2,353	)		0			0			(2,353	)
Non-interest expense		19,906			635			(176	)		20,365
Income tax expense		4,755			(123	)		0			4,632
Net income		12,054			11,565			(12,054	)		11,565
Total assets		1,035,945			110,072			(109,402	)		1,036,615
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		10,590			0			0			10,590
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		19,992			562			(175	)		20,379
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 quarter ended September 30, 2021:
Interest income - external customers	$	8,401			0			0			8,401
Non-interest income - external customers		3,051			0			0			3,051
Intersegment interest income		0			8			(8	)		0
Intersegment non-interest income		59			3,773			(3,832	)		0
Interest expense		368			0			(8	)		360
Provision for loan losses		(886	)		0			0			(886	)
Non-interest expense		6,766			199			(59	)		6,906
Income tax expense		1,490			(37	)		0			1,453
Net income		3,773			3,619			(3,773	)		3,619
Total assets		1,035,945			110,072			(109,402	)		1,036,615
At or for the quarter ended September 30, 2020:
Interest income - external customers	$	7,949			0			0			7,949
Non-interest income - external customers		4,527			0			0			4,527
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		6,591			194			(58	)		6,727
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