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Note 16 - Segment Reporting | 9 Months Ended
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Sep. 30, 2025
Notes to Financial Statements |
Segment Reporting Disclosure [Text Block] | NOTE 16 Segment Reporting Beginning with the annual period ended December 31, 2024, the Company adopted the guidance within ASU 2023-07, Segment Reporting (Topic 280), which expanded disclosure requirements for significant segment expenses and other segment items. In connection with this guidance, compensation, employee taxes and benefits, business services, software and technology expense, and merger and acquisition expense are presented separately as these expenses were previously included within total noninterest expense. Financial information for prior periods were recast to conform to the current presentation. 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, and assesses overall segment performance based on net income (loss) before taxes and uses this metric to allocate resources for each segment, focusing on budgeting and forecasting. 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. The Company’s reportable segments include the following:
| ● | Banking: Offers a complete line of loan, deposit, cash management, and treasury services through 28 offices in North Dakota, Minnesota, Wisconsin, Iowa, and Arizona, including 15 banking offices acquired in the HMN Financial, Inc. (“HMNF”) transaction. 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: Provides the following services nationally: record-keeping and administration services to qualified and other types of retirement plans, investment fiduciary services to retirement plans, health savings accounts, flexible 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: Provides advisory and planning services, investment management, and trust and fiduciary services to clients across the Company’s footprint.
The Company’s segment reporting process begins with the assignment of income and expenses directly to the applicable segments based on different cost centers withing the Company. The net income (loss) before taxes for each reportable segment is further derived by the use of expense allocations. Certain expenses not directly attributable to a specific segment are allocated across all segments based on key metrics, such as number of employees and time spent working in each segment. These types of expenses include business services, software and technology expense, human resources, accounting and finance, risk management, legal, and marketing. The financial information presented for each segment includes net interest income, provision for credit losses, noninterest income, and direct and indirect noninterest expense. As discussed above, noninterest expense is broken out between significant noninterest expenses and other noninterest expense. Other noninterest expense consists of occupancy and equipment expense, intangible amortization expense, professional fees and assessments (less merger and acquisition expenses which are included within this expense item on the consolidated statements of income), marketing and business development, supplies and postage, travel, mortgage and lending expenses, and other noninterest expenses. Corporate administration includes all remaining income and expenses not allocated to the three operating segments, including all merger and acquisition expenses. The assignment and allocation methodologies used in the segment reporting process discussed above change from time to time as systems are enhanced, methods for evaluating segment performance or product lines change or as business segments are realigned. The following tables present key metrics related to the Company’s segments for the periods presented:
|  | As of and for the three months ended September 30, 2025 |
|  |  |  |  |  | Retirement and |  |  |  |  |  |  | Corporate |  |  |  |  |
(dollars in thousands) |  | Banking |  |  | Benefit Services |  |  | Wealth |  |  | Administration |  |  | Consolidated |
Net interest income (loss) |  | $ | 43,788 |  |  | $ | — |  |  | $ | — |  |  | $ | (652 | ) |  | $ | 43,136 |
Provision for credit losses |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Noninterest income (loss) |  |  | 6,216 |  |  |  | 16,496 |  |  |  | 6,560 |  |  |  | 158 |  |  |  | 29,430 |
Noninterest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Compensation |  |  | 12,562 |  |  |  | 7,364 |  |  |  | 3,519 |  |  |  | 1,539 |  |  |  | 24,984 |
Employee taxes and benefits |  |  | 3,001 |  |  |  | 1,899 |  |  |  | 561 |  |  |  | 633 |  |  |  | 6,094 |
Business services, software and technology expense |  |  | 2,909 |  |  |  | 1,852 |  |  |  | 1,379 |  |  |  | 145 |  |  |  | 6,285 |
Merger and acquisition expense |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (43 | ) |  |  | (43 | )
Other noninterest expense |  |  | 10,225 |  |  |  | 2,279 |  |  |  | 424 |  |  |  | 293 |  |  |  | 13,221 |
Total noninterest expense |  |  | 28,697 |  |  |  | 13,394 |  |  |  | 5,883 |  |  |  | 2,567 |  |  |  | 50,541 |
Net income (loss) before taxes |  | $ | 21,307 |  |  | $ | 3,102 |  |  | $ | 677 |  |  | $ | (3,061 | ) |  | $ | 22,025 |
Total assets |  | $ | 5,236,412 |  |  | $ | 30,941 |  |  | $ | 5,777 |  |  | $ | 57,443 |  |  | $ | 5,330,573 |
|  | As of and for the nine months ended September 30, 2025 |
|  |  |  |  |  | Retirement and |  |  |  |  |  |  | Corporate |  |  |  |  |
(dollars in thousands) |  | Banking |  |  | Benefit Services |  |  | Wealth |  |  | Administration |  |  | Consolidated |
Net interest income (loss) |  | $ | 129,279 |  |  | $ | — |  |  | $ | — |  |  | $ | (1,954 | ) |  | $ | 127,325 |
Provision for credit losses |  |  | 863 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 863 |
Noninterest income (loss) |  |  | 19,298 |  |  |  | 48,625 |  |  |  | 20,827 |  |  |  | 74 |  |  |  | 88,824 |
Noninterest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Compensation |  |  | 36,476 |  |  |  | 21,644 |  |  |  | 9,954 |  |  |  | 4,214 |  |  |  | 72,288 |
Employee taxes and benefits |  |  | 10,170 |  |  |  | 6,225 |  |  |  | 2,023 |  |  |  | 2,072 |  |  |  | 20,490 |
Business services, software and technology expense |  |  | 8,957 |  |  |  | 5,776 |  |  |  | 2,683 |  |  |  | 489 |  |  |  | 17,905 |
Merger and acquisition expense |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 254 |  |  |  | 254 |
Other noninterest expense |  |  | 29,753 |  |  |  | 6,532 |  |  |  | 1,192 |  |  |  | 930 |  |  |  | 38,407 |
Total noninterest expense |  |  | 85,356 |  |  |  | 40,177 |  |  |  | 15,852 |  |  |  | 7,959 |  |  |  | 149,344 |
Net income (loss) before taxes |  | $ | 62,358 |  |  | $ | 8,448 |  |  | $ | 4,975 |  |  | $ | (9,839 | ) |  | $ | 65,942 |
Total assets |  | $ | 5,236,412 |  |  | $ | 30,941 |  |  | $ | 5,777 |  |  | $ | 57,443 |  |  | $ | 5,330,573 |
|  | As of and for the three months ended September 30, 2024 |
|  |  |  |  |  | Retirement and |  |  | Wealth |  |  | Corporate |  |  |  |  |
(dollars in thousands) |  | Banking |  |  | Benefit Services |  |  | Management |  |  | Administration |  |  | Consolidated |
Net interest income (loss) |  | $ | 23,220 |  |  | $ | — |  |  | $ | — |  |  | $ | (678 | ) |  | $ | 22,542 |
Provision for credit losses |  |  | 1,661 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,661 |
Noninterest income |  |  | 4,940 |  |  |  | 16,144 |  |  |  | 6,684 |  |  |  | 595 |  |  |  | 28,363 |
Noninterest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Compensation |  |  | 9,972 |  |  |  | 7,209 |  |  |  | 2,349 |  |  |  | 1,528 |  |  |  | 21,058 |
Employee taxes and benefits |  |  | 2,441 |  |  |  | 1,896 |  |  |  | 538 |  |  |  | 525 |  |  |  | 5,400 |
Business services, software and technology expense |  |  | 2,219 |  |  |  | 1,825 |  |  |  | 703 |  |  |  | 132 |  |  |  | 4,879 |
Merger and acquisition expense |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,661 |  |  |  | 1,661 |
Other noninterest expense |  |  | 5,637 |  |  |  | 3,224 |  |  |  | 249 |  |  |  | 339 |  |  |  | 9,449 |
Total noninterest expense |  |  | 20,269 |  |  |  | 14,154 |  |  |  | 3,839 |  |  |  | 4,185 |  |  |  | 42,447 |
Net income (loss) before taxes |  | $ | 6,230 |  |  | $ | 1,990 |  |  | $ | 2,845 |  |  | $ | (4,268 | ) |  | $ | 6,797 |
Total assets |  | $ | 4,009,535 |  |  | $ | 32,882 |  |  | $ | 5,288 |  |  | $ | 310,918 |  |  | $ | 4,358,623 |
|  | As of and for the nine months ended September 30, 2024 |
|  |  |  |  |  | Retirement and |  |  |  |  |  |  | Corporate |  |  |  |  |
(dollars in thousands) |  | Banking |  |  | Benefit Services |  |  | Wealth |  |  | Administration |  |  | Consolidated |
Net interest income (loss) |  | $ | 70,803 |  |  | $ | — |  |  | $ | — |  |  | $ | (2,042 | ) |  | $ | 68,761 |
Provision for credit losses |  |  | 6,150 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 6,150 |
Noninterest income |  |  | 13,428 |  |  |  | 47,876 |  |  |  | 19,161 |  |  |  | 592 |  |  |  | 81,057 |
Noninterest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Compensation |  |  | 28,016 |  |  |  | 21,005 |  |  |  | 7,445 |  |  |  | 4,189 |  |  |  | 60,655 |
Employee taxes and benefits |  |  | 7,693 |  |  |  | 5,794 |  |  |  | 1,851 |  |  |  | 1,384 |  |  |  | 16,722 |
Business services, software and technology expense |  |  | 7,033 |  |  |  | 5,512 |  |  |  | 1,881 |  |  |  | 397 |  |  |  | 14,823 |
Merger and acquisition expense |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,252 |  |  |  | 2,252 |
Other noninterest expense |  |  | 15,113 |  |  |  | 9,454 |  |  |  | 320 |  |  |  | 879 |  |  |  | 25,766 |
Total noninterest expense |  |  | 57,855 |  |  |  | 41,765 |  |  |  | 11,497 |  |  |  | 9,101 |  |  |  | 120,218 |
Net income (loss) before taxes |  | $ | 20,226 |  |  | $ | 6,111 |  |  | $ | 7,664 |  |  | $ | (10,551 | ) |  | $ | 23,450 |
Total assets |  | $ | 4,009,535 |  |  | $ | 32,882 |  |  | $ | 5,288 |  |  | $ | 310,918 |  |  | $ | 4,358,623 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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