Segment Reporting

3 Months Ended

Mar. 31, 2022

Segment Reporting

Segment Reporting

NOTE 14 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 for each segment includes 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:

	Three months ended March 31, 2022
			Retirement and		Wealth				Corporate
(dollars in thousands)	Banking		Benefit Services		Management		Mortgage		Administration		Consolidated
Net interest income	$	21,525	$	—	$	—	$	709	$	(561)	$	21,673
Provision for loan losses		—		—		—		—		—		—
Noninterest income		1,538		17,646		5,326		4,931		29		29,470
Noninterest expense		12,694		8,432		1,838		5,020		10,087		38,071
Net income before taxes	$	10,369	$	9,214	$	3,488	$	620	$	(10,619)	$	13,072

	Three months ended March 31, 2021
			Retirement and		Wealth				Corporate
(dollars in thousands)	Banking		Benefit Services		Management		Mortgage		Administration		Consolidated
Net interest income	$	21,880	$	—	$	—	$	446	$	(288)	$	22,038
Provision for loan losses		—		—		—		—		—		—
Noninterest income		1,522		17,255		4,986		17,132		(14)		40,881
Noninterest expense		11,084		10,112		2,335		10,853		8,658		43,042
Net income before taxes	$	12,318	$	7,143	$	2,651	$	6,725	$	(8,960)	$	19,877

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. 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

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 accounts, flex spending accounts, COBRA recordkeeping and administration services, and payroll to employers; and payroll and HRIS services for employers. In addition, the division operates within each of the banking markets, as well as in Lansing, Michigan and Littleton, Colorado.

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.