Segment Reporting

12 Months Ended

Dec. 31, 2022

Segment Reporting

Segment Reporting

NOTE 22 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 expense 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 as of and for the periods presented:

	Year ended December 31, 2022
			Retirement and		Wealth				Corporate
(dollars in thousands)	Banking		Benefit Services		Management		Mortgage		Administration		Consolidated
Net interest income	$	100,190	$	—	$	—	$	1,879	$	(2,340)	$	99,729
Provision for loan losses		—		—		—		—		—		—
Noninterest income		6,199		67,135		20,870		16,921		98		111,223
Noninterest expense		67,068		26,204		5,979		18,590		40,929		158,770
Net income before taxes	$	39,321	$	40,931	$	14,891	$	210	$	(43,171)	$	52,182
Total assets	$	3,696,676	$	40,821	$	4,032	$	10,620	$	27,488	$	3,779,637

	Year ended December 31, 2021
			Retirement and		Wealth				Corporate
(dollars in thousands)	Banking		Benefit Services		Management		Mortgage		Administration		Consolidated
Net interest income	$	87,014	$	—	$	—	$	1,981	$	(1,896)	$	87,099
Provision for loan losses		(3,500)		—		—		—		—		(3,500)
Noninterest income		6,091		71,709		21,052		48,502		33		147,387
Noninterest expense		44,989		40,164		8,869		37,162		37,725		168,909
Net income before taxes	$	51,616	$	31,545	$	12,183	$	13,321	$	(39,588)	$	69,077
Total assets	$	3,254,979	$	44,953	$	3,644	$	75,713	$	13,402	$	3,392,691

	Year ended December 31, 2020
			Retirement and		Wealth				Corporate
(dollars in thousands)	Banking		Benefit Services		Management		Mortgage		Administration		Consolidated
Net interest income	$	85,167	$	—	$	—	$	2,092	$	(3,413)	$	83,846
Provision for loan losses		10,900		—		—		—		—		10,900
Noninterest income		10,017		60,956		17,451		61,641		(694)		149,371
Noninterest expense		46,883		35,236		8,289		36,323		37,068		163,799
Net income before taxes	$	37,401	$	25,720	$	9,162	$	27,410	$	(41,175)	$	58,518
Total assets	$	2,827,792	$	47,758	$	3,009	$	125,078	$	10,134	$	3,013,771

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 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; and health savings account, flex spending account, and COBRA recordkeeping and administration services to employers. The division operates within 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 the Banking office locations.