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Segment Reporting
 3 Months Ended
Mar. 31, 2023
Segment Reporting  
Segment Reporting

NOTE 15 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 credit 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, 2023

​

​

​

​

​

Retirement and

​

Wealth

​

​

​

​

Corporate

​

​

​

(dollars in thousands)

    

Banking

    

Benefit Services

    

Management

    

Mortgage

    

Administration

    

Consolidated

Net interest income (loss)

​

$

24,151

​

$

—

​

$

—

​

$

161

​

$

(654)

​

$

23,658

Provision for credit losses

​

​

550

​

​

—

​

​

—

​

​

—

​

​

—

​

​

550

Noninterest income

​

​

2,822

​

​

15,482

​

​

5,194

​

​

1,717

​

​

38

​

​

25,253

Intercompany revenue (expense)

​

​

(3,047)

​

​

1,341

​

 

(167)

​

 

225

​

​

1,648

​

​

—

Noninterest expense

​

​

13,955

​

 

7,303

​

 

1,518

​

 

2,781

​

​

12,312

​

​

37,869

Net income (loss) before taxes

​

$

9,421

​

$

9,520

​

$

3,509

​

$

(678)

​

$

(11,280)

​

$

10,492

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Three months ended March 31, 2022

​

​

​

​

​

Retirement and

​

Wealth

​

​

​

​

Corporate

​

​

​

(dollars in thousands)

    

Banking

    

Benefit Services

    

Management

    

Mortgage

    

Administration

    

Consolidated

Net interest income (loss)

​

$

21,525

​

$

—

​

$

—

​

$

709

​

$

(561)

​

$

21,673

Provision for credit losses

​

 

—

​

​

—

​

​

—

​

​

—

​

 

—

​

 

—

Noninterest income

​

 

1,538

​

​

17,646

​

​

5,326

​

​

4,931

​

 

29

​

 

29,470

Intercompany revenue (expense)

​

​

(1,159)

​

​

(403)

​

 

(513)

​

 

494

​

​

1,581

​

​

—

Noninterest expense

​

 

11,755

​

 

8,080

​

 

1,329

​

 

5,514

​

 

11,393

​

 

38,071

Net income (loss) before taxes

​

$

10,149

​

$

9,163

​

$

3,484

​

$

620

​

$

(10,344)

​

$

13,072

​

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, and COBRA recordkeeping and administration services. 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.