Segment Reporting

12 Months Ended

Dec. 31, 2023

Segment Reporting

Segment Reporting

NOTE 22 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 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 credit losses, noninterest income, and direct and indirect noninterest expense. Corporate administration includes all remaining income and expenses not allocated to the four operating segments.

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

	Year ended December 31, 2023
			Retirement and		Wealth				Corporate
(dollars in thousands)	Banking		Benefit Services		Management		Mortgage		Administration		Consolidated
Net interest income (loss)	$	89,693	$	—	$	—	$	827	$	(2,681)	$	87,839
Provision for credit losses		2,057		—		—		—		—		2,057
Noninterest income (loss)		(15,428)		65,294		21,855		8,411		97		80,229
Noninterest expense		61,023		53,307		13,477		14,606		7,744		150,157
Net income (loss) before taxes	$	11,185	$	11,987	$	8,378	$	(5,368)	$	(10,328)	$	15,854
Total assets	$	3,821,989	$	34,352	$	4,757	$	11,736	$	34,879	$	3,907,713

	Year ended December 31, 2022
			Retirement and		Wealth				Corporate
(dollars in thousands)	Banking		Benefit Services		Management		Mortgage		Administration		Consolidated
Net interest income (loss)	$	100,190	$	—	$	—	$	1,879	$	(2,340)	$	99,729
Provision for credit losses		—		—		—		—		—		—
Noninterest income		6,199		67,135		20,870		16,921		98		111,223
Noninterest expense		62,789		55,178		11,876		21,272		7,655		158,770
Net income (loss) before taxes	$	43,600	$	11,957	$	8,994	$	(2,472)	$	(9,897)	$	52,182
Total assets	$	3,697,608	$	40,821	$	4,032	$	10,620	$	26,556	$	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		53,121		55,802		11,571		39,518		8,897		168,909
Net income before taxes	$	43,484	$	15,907	$	9,481	$	10,965	$	(10,760)	$	69,077
Total assets	$	3,254,979	$	44,953	$	3,644	$	75,713	$	13,402	$	3,392,691

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; recordkeeping, and administration services to other types of retirement plans; investment fiduciary services to retirement plans; health savings accounts, flex spending accounts, and COBRA recordkeeping and administration services. The division operates within each of the banking markets, as well as in East Lansing, Michigan and Lakewood, 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.