Note 16 - Business Segments

9 Months Ended

Sep. 30, 2022

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, 2022:
Interest income – external customers	$	24,253			0			0			24,253
Non-interest income – external customers		6,945			0			0			6,945
Intersegment interest income		0			27			(27	)		0
Intersegment non-interest income		176			6,052			(6,228	)		0
Interest expense		942			0			(27	)		915
Provision for loan losses		941			0			0			941
Non-interest expense		20,972			613			(176	)		21,409
Income tax expense		2,467			(141	)		0			2,326
Net income		6,052			5,607			(6,052	)		5,607
Total assets		1,046,983			89,817			(89,007	)		1,047,793
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 quarter ended September 30, 2022:
Interest income – external customers	$	8,631			0			0			8,631
Non-interest income – external customers		2,054			0			0			2,054
Intersegment interest income		0			10			(10	)		0
Intersegment non-interest income		59			1,981			(2,040	)		0
Interest expense		350			0			(10	)		340
Provision for loan losses		579			0			0			579
Non-interest expense		7,025			208			(59	)		7,174
Income tax expense		809			(48	)		0			761
Net income		1,981			1,831			(1,981	)		1,831
Total assets		1,046,983			89,817			(89,007	)		1,047,793
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