Note 17 - Segment Reporting

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 17 Segment Reporting

Operating segments are components of an enterprise, which are evaluated regularly by the “chief operating decision maker” in deciding how to allocate resources and assess performance. The Company’s chief operating decision maker is the President and Chief Executive Officer of the Company. Reportable segments are determined based on the services offered, the significance of the services offered, the significance of those services to the Company’s financial statements, and management’s regular review of the operating results of those services. The Company currently operates through three operating segments: Banking, Retirement and Benefit Services, and Wealth Management. In prior periods, the Company had a fourth operating segment, Mortgage. As of January 1, 2024, the Mortgage division was fully integrated into the Banking division by the Company to reflect the way the Company currently manages and views the business. The Company has restated all historical periods presented within these financial statements, and has not included the Mortgage operating segment.

The financial information presented for each segment includes net interest income, provision for credit losses, noninterest income, and direct and indirect noninterest expense. Corporate Administration includes all remaining income and expenses not allocated to the three operating segments.

The following tables present key metrics related to the Company’s segments for the periods presented:

	As of and for the three months ended September 30, 2024
			Retirement and		Wealth		Corporate
(dollars in thousands)	Banking		Benefit Services		Management		Administration			Consolidated
Net interest income (loss)	$	23,220	$	—	$	—	$	(678	)	$	22,542
Provision for credit losses		1,661		—		—		—			1,661
Noninterest income (loss)		4,940		16,144		6,684		595			28,363
Noninterest expense		20,269		14,154		3,838		4,186			42,447
Net income (loss) before taxes	$	6,230	$	1,990	$	2,846	$	(4,269	)	$	6,797
Total assets	$	4,009,535	$	32,882	$	5,288	$	36,935		$	4,084,640

	As of and for the nine months ended September 30, 2024
			Retirement and		Wealth		Corporate
(dollars in thousands)	Banking		Benefit Services		Management		Administration			Consolidated
Net interest income (loss)	$	70,803	$	—	$	—	$	(2,042	)	$	68,761
Provision for credit losses		6,150		—		—		—			6,150
Noninterest income (loss)		13,428		47,876		19,161		592			81,057
Noninterest expense		57,837		41,757		11,494		9,130			120,218
Net income (loss) before taxes	$	20,244	$	6,119	$	7,667	$	(10,580	)	$	23,450
Total assets	$	4,009,535	$	32,882	$	5,288	$	36,935		$	4,084,640

	As of and for the three months ended September 30, 2023
			Retirement and		Wealth		Corporate
(dollars in thousands)	Banking		Benefit Services		Management		Administration			Consolidated
Net interest income (loss)	$	21,073	$	—	$	—	$	(678	)	$	20,395
Provision for credit losses		—		—		—		—			—
Noninterest income		4,660		18,605		5,271		(129	)		28,407
Noninterest expense		18,881		13,269		3,351		1,759			37,260
Net income (loss) before taxes	$	6,852	$	5,336	$	1,920	$	(2,566	)	$	11,542
Total assets	$	3,801,230	$	36,114	$	4,224	$	(8,590	)	$	3,832,978

	As of and for the nine months ended September 30, 2023
			Retirement and		Wealth		Corporate
(dollars in thousands)	Banking		Benefit Services		Management		Administration			Consolidated
Net interest income (loss)	$	68,285	$	—	$	—	$	(1,998	)	$	66,287
Provision for credit losses		550		—		—		—			550
Noninterest income		13,440		49,977		15,915		107			79,439
Noninterest expense		56,832		39,515		9,703		5,453			111,503
Net income (loss) before taxes	$	24,343	$	10,462	$	6,212	$	(7,344	)	$	33,673
Total assets	$	3,801,230	$	36,114	$	4,224	$	(8,590	)	$	3,832,978

Banking

The Banking division offers a complete line of loan, deposit, cash management, and treasury services through fourteen offices in North Dakota, Minnesota, and Arizona. After the closing of the HMNF acquisition, the Company added 15 banking offices in Minnesota, Wisconsin, and Iowa. These products and services are supported through web and mobile based applications. The majority of the Company’s assets and liabilities are in the Banking segment’s balance sheet.

Retirement and Benefit Services

The Retirement and Benefit Services division provides the following services nationally: record-keeping and administration services to qualified and other types of retirement plans, investment fiduciary services to retirement plans, health savings accounts, flexible spending accounts, and COBRA recordkeeping and administration services.

Wealth Management

The Wealth Management division provides advisory and planning services, investment management, and trust and fiduciary services to clients across the Company’s footprint.