Segment Reporting

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Reporting

Note 14 – Segment Reporting

Selected financial and descriptive information is required to be provided about reportable operating segments, considering a "management approach" concept as the basis for identifying reportable segments. The management approach is based on the way that management organizes the segments within the enterprise for making operating decisions, allocating resources, and assessing performance. Consequently, the segments are evident from the structure of the enterprise's internal organization, focusing on financial information that an enterprise's chief operating decision-makers use to make decisions about the enterprise's operating matters.

The Company has determined that it has two reportable segments: community banking and mortgage banking. The Company's operating segments are presented based on its management structure and management accounting practices. The structure and practices are specific to the Company and therefore, the financial results of the Company's business segments are not necessarily comparable with similar information for other financial institutions.

Community Banking

The community banking segment provides consumer and business banking products and services to customers primarily within Southeastern Wisconsin along with a loan production office in Minneapolis, Minnesota.  Within this segment, the following products and services are provided:  (1) lending solutions such as residential mortgages, home equity loans and lines of credit, personal and installment loans, real estate financing, business loans, and business lines of credit; (2) deposit and transactional solutions such as checking, credit, debit and pre-paid cards, online banking and bill pay, and money transfer services; (3) investable funds solutions such as savings, money market deposit accounts, IRA accounts, certificates of deposit, and (4) fixed and variable annuities, insurance as well as trust and investment management accounts.

Consumer products include loan and deposit products: mortgage, home equity loans and lines, personal term loans, demand deposit accounts, interest bearing transaction accounts and time deposits. Consumer products also include personal investment services. Business banking products include secured and unsecured lines and term loans for working capital, inventory and general corporate use, commercial real estate construction loans, demand deposit accounts, interest bearing transaction accounts and time deposits.

Mortgage Banking

The mortgage banking segment provides residential mortgage loans for the primary purpose of sale on the secondary market. Mortgage banking products and services are provided by offices in 21 states with the ability to lend in 48 states.

Presented below is the segment information:

	As of or for the three months ended June 30, 2020
	Community Banking		Mortgage Banking			Holding Company and Other			Consolidated
	(In Thousands)
Net interest income (loss)	$	13,701	$	(511	)	$	59		$	13,249
Provision for loan losses		4,325		175			-			4,500
Net interest income (loss) after provision for loan losses		9,376		(686	)		59			8,749
Noninterest income		2,936		64,218			(250	)		66,904
Noninterest expenses:
Compensation, payroll taxes, and other employee benefits		4,906		32,139			(156	)		36,889
Occupancy, office furniture and equipment		866		1,668			-			2,534
Advertising		297		567			-			864
Data processing		678		413			4			1,095
Communications		91		226			-			317
Professional fees		226		850			1			1,077
Real estate owned		33		-			-			33
Loan processing expense		-		1,208			-			1,208
Other		532		3,239			(99	)		3,672
Total noninterest expenses		7,629		40,310			(250	)		47,689
Income before income taxes		4,683		23,222			59			27,964
Income tax expense		574		6,440			2			7,016
Net income	$	4,109	$	16,782		$	57		$	20,948
Total assets	$	2,141,415	$	439,444		$	(363,286	)	$	2,217,573

	As of or for the three months ended June 30, 2019
	Community Banking		Mortgage Banking			Holding Company and Other			Consolidated
	(In Thousands)
Net interest income (loss)	$	13,530	$	(529	)	$	(20	)	$	12,981
Provision for loan losses		-		30			-			30
Net interest income (loss) after provision for loan losses		13,530		(559	)		(20	)		12,951
Noninterest income		1,079		34,364			(253	)		35,190
Noninterest expenses:
Compensation, payroll taxes, and other employee benefits		4,671		22,579			(176	)		27,074
Occupancy, office furniture and equipment		944		1,736			-			2,680
Advertising		220		743			-			963
Data processing		493		372			4			869
Communications		93		260			-			353
Professional fees		160		620			9			789
Real estate owned		19		-			-			19
Loan processing expense		-		879			-			879
Other		635		1,186			(92	)		1,729
Total noninterest expenses		7,235		28,375			(255	)		35,355
Income (loss) before income taxes		7,374		5,430			(18	)		12,786
Income tax expense		1,594		1,545			4			3,143
Net income (loss)	$	5,780	$	3,885		$	(22	)	$	9,643
Total assets	$	1,958,339	$	290,977		$	(234,178	)	$	2,015,138

	As of or for the six months ended June 30, 2020
	Community Banking		Mortgage Banking			Holding Company and Other			Consolidated
	(In Thousands)
Net interest income (loss)	$	26,609	$	(890	)	$	56		$	25,775
Provision for loan losses		5,075		210			-			5,285
Net interest income (loss) after provision for loan losses		21,534		(1,100	)		56			20,490
Noninterest income		3,964		95,016			(612	)		98,368
Noninterest expenses:
Compensation, payroll taxes, and other employee benefits		10,074		51,526			(310	)		61,290
Occupancy, office furniture and equipment		1,880		3,395			-			5,275
Advertising		545		1,219			-			1,764
Data processing		1,283		808			10			2,101
Communications		188		467			-			655
Professional fees		424		2,470			15			2,909
Real estate owned		44		-			-			44
Loan processing expense		-		2,284			-			2,284
Other		1,112		5,791			(328	)		6,575
Total noninterest expenses		15,550		67,960			(613	)		82,897
Income before income taxes		9,948		25,956			57			35,961
Income tax expense		1,728		7,208			8			8,944
Net income	$	8,220	$	18,748		$	49		$	27,017

	As of or for the six months ended June 30, 2019
	Community Banking			Mortgage Banking			Holding Company and Other			Consolidated
	(In Thousands)
Net interest income (loss)	$	26,662		$	(737	)	$	(8	)	$	25,917
Provision (credit) for loan losses		(700	)		50			-			(650	)
Net interest income (loss) after provision for loan losses		27,362			(787	)		(8	)		26,567
Noninterest income		1,960			57,935			(448	)		59,447
Noninterest expenses:
Compensation, payroll taxes, and other employee benefits		9,427			38,639			(353	)		47,713
Occupancy, office furniture and equipment		1,916			3,540			-			5,456
Advertising		401			1,520			-			1,921
Data processing		950			680			8			1,638
Communications		175			506			-			681
Professional fees		428			1,046			10			1,484
Real estate owned		51			-			-			51
Loan processing expense		-			1,684			-			1,684
Other		1,124			3,098			(146	)		4,076
Total noninterest expenses		14,472			50,713			(481	)		64,704
Income before income taxes		14,850			6,435			25			21,310
Income tax expense		3,281			1,831			13			5,125
Net income	$	11,569		$	4,604		$	12		$	16,185