XML 82 R29.htm IDEA: XBRL DOCUMENT v3.20.1
Segment Reporting
 12 Months Ended
Dec. 31, 2019
Segment Reporting  
Segment Reporting

NOTE 21 Segment Reporting

The Company determines reportable segments 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 operates through four operating segments: Banking, Retirement and Benefit Services, Wealth Management, and Mortgage.

The financial information presented on each segment sets forth net interest income, provision for loan losses, direct noninterest income and direct noninterest expense before indirect allocations. Corporate Administration includes the indirect overhead and is set forth in the table below. The segment net income before taxes represents direct revenue and expense before indirect allocations and income taxes.

The following table presents key metrics related to the Company’s segments for the periods presented:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Year ended December 31, 2019

 

 

 

 

 

Retirement and

 

Wealth

 

 

 

 

Corporate

 

 

 

(dollars in thousands)

    

Banking

    

Benefit Services

    

Management

    

Mortgage

    

Administration

    

Consolidated

Net interest income

 

$

76,916

 

$

 —

 

$

 —

 

$

1,245

 

$

(3,610)

 

$

74,551

Provision for loan losses

 

 

7,312

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

7,312

Noninterest income

 

 

6,970

 

 

63,811

 

 

15,502

 

 

25,805

 

 

2,106

 

 

114,194

Noninterest expense

 

 

43,171

 

 

35,407

 

 

7,188

 

 

21,877

 

 

34,894

 

 

142,537

Net income before taxes

 

$

33,403

 

$

28,404

 

$

8,314

 

$

5,173

 

$

(36,398)

 

$

38,896

Total assets

    

$

2,259,614

 

$

39,021

 

$

128

 

$

47,703

 

$

10,412

 

$

2,356,878

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Year ended December 31, 2018

 

 

 

 

 

Retirement and

 

Wealth

 

 

 

 

Corporate

 

 

 

(dollars in thousands)

    

Banking

    

Benefit Services

    

Management

    

Mortgage

    

Administration

    

Consolidated

Net interest income

 

$

77,919

 

$

 —

 

$

62

 

$

834

 

$

(3,591)

 

$

75,224

Provision for loan losses

 

 

8,599

 

 

 —

 

 

 —

 

 

11

 

 

 —

 

 

8,610

Noninterest income

 

 

6,921

 

 

63,316

 

 

14,900

 

 

17,630

 

 

(18)

 

 

102,749

Noninterest expense

 

 

42,605

 

 

36,414

 

 

6,824

 

 

17,199

 

 

33,283

 

 

136,325

Net income before taxes

 

$

33,636

 

$

26,902

 

$

8,138

 

$

1,254

 

$

(36,892)

 

$

33,038

Total assets

    

$

2,120,249

 

$

41,492

 

$

3,235

 

$

14,600

 

$

(506)

 

$

2,179,070

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Year ended December 31, 2017

 

 

 

 

 

Retirement and

 

Wealth

 

 

 

 

Corporate

 

 

 

(dollars in thousands)

    

Banking

    

Benefit Services

    

Management

    

Mortgage

    

Administration

    

Consolidated

Net interest income

 

$

70,377

 

$

 —

 

$

57

 

$

740

 

$

(3,504)

 

$

67,670

Provision for loan losses

 

 

3,280

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

3,280

Noninterest income

 

 

7,180

 

 

62,390

 

 

13,953

 

 

19,748

 

 

(226)

 

 

103,045

Noninterest expense

 

 

35,996

 

 

41,977

 

 

7,640

 

 

17,448

 

 

31,859

 

 

134,920

Net income before taxes

 

$

38,281

 

$

20,413

 

$

6,370

 

$

3,040

 

$

(35,589)

 

$

32,515

Total assets

    

$

2,078,013

 

$

38,118

 

$

2,718

 

$

18,669

 

$

(1,437)

 

$

2,136,081

 

Banking

The Banking division offers a complete line of loan, deposit, cash management, and treasury services through fifteen offices in North Dakota, Minnesota, and Arizona. 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 segments’ balance sheet.

Retirement and Benefit Services

Retirement and Benefit Services provides the following services nationally: recordkeeping and administration services to qualified retirement plans; ESOP trustee, recordkeeping, and administration; investment fiduciary services to retirement plans; health savings account, flex spending account, and Cobra recordkeeping and administration services to employers; payroll and HIRS services for employers. In addition, the division operates within the banking markets as well as in Albert Lea, Minnesota, Lansing, Michigan, Manchester, New Hampshire and 13 satellite offices.

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.

Mortgage

The mortgage division offers first and second mortgage loans through a centralized mortgage unit in Minneapolis, Minnesota as well as through the Banking office locations.