Segment Reporting

3 Months Ended

Mar. 31, 2024

Segment Reporting

Segment Reporting

NOTE 15 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 table presents key metrics related to the Company’s segments for the periods presented:

	Three months ended March 31, 2024
			Retirement and		Wealth		Corporate
(dollars in thousands)	Banking		Benefit Services		Management		Administration		Consolidated
Net interest income (loss)	$	22,897	$	—	$	—	$	(678)	$	22,219
Provision for credit losses		—		—		—		—		—
Noninterest income (loss)		3,490		15,655		6,118		60		25,323
Noninterest expense		18,666		14,189		3,750		2,414		39,019
Net income (loss) before taxes	$	7,721	$	1,466	$	2,368	$	(3,032)	$	8,523
Total assets	$	4,262,600	$	33,636	$	4,787	$	37,070	$	4,338,093

	Three months ended March 31, 2023
			Retirement and		Wealth		Corporate
(dollars in thousands)	Banking		Benefit Services		Management		Administration		Consolidated
Net interest income (loss)	$	24,312	$	—	$	—	$	(654)	$	23,658
Provision for credit losses		550		—		—		—		550
Noninterest income		4,539		15,482		5,194		38		25,253
Noninterest expense		18,650		13,595		3,362		2,262		37,869
Net income (loss) before taxes	$	9,651	$	1,887	$	1,832	$	(2,878)	$	10,492
Total assets	$	3,818,449	$	38,419	$	4,111	$	25,794	$	3,886,773

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; 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 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.