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WISCONSIN
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47-0871001
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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Title of each class
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Trading Symbol
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Name of each exchange on which registered
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Common Stock, par value $0.01 per share
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NCBS
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The NASDAQ Stock Market LLC
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PAGE
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•
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operating, legal and regulatory risks, including the effects of legislative or regulatory developments affecting the financial industry generally or Nicolet specifically;
|
•
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economic, market, political and competitive forces affecting Nicolet's banking and wealth management businesses;
|
•
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changes in interest rates, monetary policy and general economic conditions, which may impact Nicolet's net interest income;
|
•
|
potential difficulties in integrating the operations of Nicolet with future acquisition targets following any merger;
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•
|
adoption of new accounting standards, including the effects from the adoption of the current expected credit losses (“CECL”) model on January 1, 2020, or changes in existing standards;
|
•
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compliance or operational risks related to new products, services, ventures, or lines of business, if any, that Nicolet may pursue or implement; and
|
•
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the risk that Nicolet's analysis of these risks and forces could be incorrect and/or that the strategies developed to address them could be unsuccessful.
|
•
|
acquiring direct or indirect ownership or control of any voting shares of any bank if, after the acquisition, the bank holding company will directly or indirectly own or control more than 5% of the bank’s voting shares;
|
•
|
acquiring all or substantially all of the assets of any bank; or
|
•
|
merging or consolidating with any other bank holding company.
|
|
Adequately Capitalized
Requirement
|
|
Well-Capitalized
Requirement
|
|
Well-Capitalized
with Buffer
|
|||
Leverage
|
4.0
|
%
|
|
5.0
|
%
|
|
5.0
|
%
|
CET1
|
4.5
|
%
|
|
6.5
|
%
|
|
7.0
|
%
|
Tier 1
|
6.0
|
%
|
|
8.0
|
%
|
|
8.5
|
%
|
Total Capital
|
8.0
|
%
|
|
10.0
|
%
|
|
10.5
|
%
|
•
|
total reported loans for construction, land development and other land represent 100% or more of the institution’s total capital, or
|
•
|
total commercial real estate loans represent 300% or more of the institution’s total capital, and the outstanding balance of the institution’s commercial real estate loan portfolio has increased by 50% or more.
|
•
|
significant acquisitions or business combinations, strategic partnerships, joint ventures, or capital commitments by or involving us or our competitors;
|
Period:
|
Total Number
of Shares
Purchased (#) (a) (b)
|
|
Average Price
Paid per Share ($)
|
|
Total Number of
Shares Purchased as
Part of Publicly
Announced Plans
or Programs (#) (b)
|
|
Maximum Number of
Shares that May Yet
Be Purchased Under
the Plans
or Programs (#) (a) (b)
|
|||||
October 1 – October 31, 2019
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
596,700
|
|
November 1– November 30, 2019
|
113,734
|
|
|
$
|
70.47
|
|
|
40,228
|
|
|
556,500
|
|
December 1 – December 31, 2019
|
9,729
|
|
|
$
|
73.39
|
|
|
7,500
|
|
|
549,000
|
|
Total
|
123,463
|
|
|
$
|
70.70
|
|
|
47,728
|
|
|
549,000
|
|
|
|
Period Ending
|
||||||||||||||||||||||
Index
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
||||||||||||
Nicolet Bankshares, Inc.
|
|
$
|
100.00
|
|
|
$
|
127.16
|
|
|
$
|
190.76
|
|
|
$
|
218.96
|
|
|
$
|
195.20
|
|
|
$
|
295.40
|
|
S&P 500 Index
|
|
100.00
|
|
|
101.38
|
|
|
113.51
|
|
|
138.29
|
|
|
132.33
|
|
|
173.86
|
|
||||||
KBW Nasdaq Bank Index
|
|
100.00
|
|
|
100.49
|
|
|
129.14
|
|
|
153.15
|
|
|
126.02
|
|
|
171.55
|
|
|
At and for the years ended December 31,
|
||||||||||||||||||
(in thousands, except per share data)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Results of operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest income
|
$
|
138,588
|
|
|
$
|
125,537
|
|
|
$
|
109,253
|
|
|
$
|
75,467
|
|
|
$
|
48,597
|
|
Interest expense
|
22,510
|
|
|
18,889
|
|
|
10,511
|
|
|
7,334
|
|
|
7,213
|
|
|||||
Net interest income
|
116,078
|
|
|
106,648
|
|
|
98,742
|
|
|
68,133
|
|
|
41,384
|
|
|||||
Provision for loan losses
|
1,200
|
|
|
1,600
|
|
|
2,325
|
|
|
1,800
|
|
|
1,800
|
|
|||||
Net interest income after provision for loan losses
|
114,878
|
|
|
105,048
|
|
|
96,417
|
|
|
66,333
|
|
|
39,584
|
|
|||||
Noninterest income
|
53,367
|
|
|
39,509
|
|
|
34,639
|
|
|
26,674
|
|
|
17,708
|
|
|||||
Noninterest expense
|
96,799
|
|
|
89,758
|
|
|
81,356
|
|
|
64,942
|
|
|
39,648
|
|
|||||
Income before income tax expense
|
71,446
|
|
|
54,799
|
|
|
49,700
|
|
|
28,065
|
|
|
17,644
|
|
|||||
Income tax expense
|
16,458
|
|
|
13,446
|
|
|
16,267
|
|
|
9,371
|
|
|
6,089
|
|
|||||
Net income
|
54,988
|
|
|
41,353
|
|
|
33,433
|
|
|
18,694
|
|
|
11,555
|
|
|||||
Net income attributable to noncontrolling interest
|
347
|
|
|
317
|
|
|
283
|
|
|
232
|
|
|
127
|
|
|||||
Net income attributable to Nicolet Bankshares, Inc.
|
54,641
|
|
|
41,036
|
|
|
33,150
|
|
|
18,462
|
|
|
11,428
|
|
|||||
Preferred stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
633
|
|
|
212
|
|
|||||
Net income available to common shareholders
|
$
|
54,641
|
|
|
$
|
41,036
|
|
|
$
|
33,150
|
|
|
$
|
17,829
|
|
|
$
|
11,216
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic
|
$
|
5.71
|
|
|
$
|
4.26
|
|
|
$
|
3.51
|
|
|
$
|
2.49
|
|
|
$
|
2.80
|
|
Diluted
|
$
|
5.52
|
|
|
$
|
4.12
|
|
|
$
|
3.33
|
|
|
$
|
2.37
|
|
|
$
|
2.57
|
|
Common shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic weighted average
|
9,562
|
|
|
9,640
|
|
|
9,440
|
|
|
7,158
|
|
|
4,004
|
|
|||||
Diluted weighted average
|
9,900
|
|
|
9,956
|
|
|
9,958
|
|
|
7,514
|
|
|
4,362
|
|
|||||
Outstanding
|
10,588
|
|
|
9,495
|
|
|
9,818
|
|
|
8,553
|
|
|
4,154
|
|
|||||
Year-End Balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loans
|
$
|
2,573,751
|
|
|
$
|
2,166,181
|
|
|
$
|
2,087,925
|
|
|
$
|
1,568,907
|
|
|
$
|
877,061
|
|
Allowance for loan losses ("ALLL")
|
13,972
|
|
|
13,153
|
|
|
12,653
|
|
|
11,820
|
|
|
10,307
|
|
|||||
Securities available for sale, at fair value
|
449,302
|
|
|
400,144
|
|
|
405,153
|
|
|
365,287
|
|
|
172,596
|
|
|||||
Goodwill and other intangibles, net
|
165,967
|
|
|
124,307
|
|
|
128,406
|
|
|
87,938
|
|
|
3,793
|
|
|||||
Total assets
|
3,577,260
|
|
|
3,096,535
|
|
|
2,932,433
|
|
|
2,300,879
|
|
|
1,214,439
|
|
|||||
Deposits
|
2,954,453
|
|
|
2,614,138
|
|
|
2,471,064
|
|
|
1,969,986
|
|
|
1,056,417
|
|
|||||
Short-term and long-term borrowings
|
67,629
|
|
|
77,305
|
|
|
78,046
|
|
|
37,617
|
|
|
39,788
|
|
|||||
Common equity
|
516,262
|
|
|
386,609
|
|
|
364,178
|
|
|
275,947
|
|
|
97,301
|
|
|||||
Stockholders’ equity
|
516,262
|
|
|
386,609
|
|
|
364,178
|
|
|
275,947
|
|
|
109,501
|
|
|||||
Book value per common share
|
$
|
48.76
|
|
|
$
|
40.72
|
|
|
$
|
37.09
|
|
|
$
|
32.26
|
|
|
$
|
23.42
|
|
Tangible book value per common share *
|
$
|
33.08
|
|
|
$
|
27.62
|
|
|
$
|
24.01
|
|
|
$
|
21.98
|
|
|
$
|
22.51
|
|
Average Balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loans
|
$
|
2,257,033
|
|
|
$
|
2,127,470
|
|
|
$
|
1,899,225
|
|
|
$
|
1,346,304
|
|
|
$
|
883,904
|
|
Interest-earning assets
|
2,794,641
|
|
|
2,671,560
|
|
|
2,351,451
|
|
|
1,723,600
|
|
|
1,083,967
|
|
|||||
Goodwill and other intangibles, net
|
129,112
|
|
|
126,284
|
|
|
115,447
|
|
|
61,588
|
|
|
4,287
|
|
|||||
Total assets
|
3,126,535
|
|
|
2,977,457
|
|
|
2,648,754
|
|
|
1,934,770
|
|
|
1,185,921
|
|
|||||
Deposits
|
2,598,271
|
|
|
2,508,952
|
|
|
2,228,408
|
|
|
1,641,894
|
|
|
1,021,155
|
|
|||||
Interest-bearing liabilities
|
1,939,639
|
|
|
1,951,846
|
|
|
1,750,099
|
|
|
1,307,471
|
|
|
851,957
|
|
|||||
Common equity
|
423,952
|
|
|
371,635
|
|
|
332,897
|
|
|
217,432
|
|
|
90,787
|
|
|||||
Stockholders’ equity
|
423,952
|
|
|
371,635
|
|
|
332,897
|
|
|
226,265
|
|
|
112,012
|
|
|||||
Financial Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Return on average assets
|
1.75
|
%
|
|
1.38
|
%
|
|
1.25
|
%
|
|
0.95
|
%
|
|
0.96
|
%
|
|||||
Return on average equity
|
12.89
|
|
|
11.04
|
|
|
9.96
|
|
|
8.16
|
|
|
10.20
|
|
|||||
Return on average common equity
|
12.89
|
|
|
11.04
|
|
|
9.96
|
|
|
8.20
|
|
|
12.35
|
|
|||||
Return on average tangible common equity *
|
18.53
|
|
|
16.73
|
|
|
15.24
|
|
|
11.44
|
|
|
12.97
|
|
|||||
Average equity to average assets
|
13.56
|
|
|
12.48
|
|
|
12.57
|
|
|
11.69
|
|
|
9.45
|
|
|||||
Net interest margin
|
4.19
|
|
|
4.04
|
|
|
4.30
|
|
|
4.01
|
|
|
3.88
|
|
|||||
Stockholders’ equity to assets
|
14.43
|
|
|
12.49
|
|
|
12.42
|
|
|
11.99
|
|
|
9.02
|
|
|||||
Tangible common equity to tangible assets *
|
10.27
|
|
|
8.83
|
|
|
8.41
|
|
|
8.50
|
|
|
7.72
|
|
|||||
Net loan charge-offs to average loans
|
0.02
|
|
|
0.05
|
|
|
0.08
|
|
|
0.02
|
|
|
0.09
|
|
|||||
Nonperforming loans to total loans
|
0.55
|
|
|
0.25
|
|
|
0.63
|
|
|
1.29
|
|
|
0.40
|
|
|||||
Nonperforming assets to total assets
|
0.42
|
|
|
0.19
|
|
|
0.49
|
|
|
0.97
|
|
|
0.32
|
|
|||||
Allowance for loan losses to loans
|
0.54
|
|
|
0.61
|
|
|
0.61
|
|
|
0.75
|
|
|
1.18
|
|
|
Years Ended December 31,
|
|||||||||||||||||||||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||||||||||||||
|
Average
Balance
|
|
Interest
|
|
Average
Yield/Rate
|
|
Average
Balance
|
|
Interest
|
|
Average
Yield/Rate
|
|
Average
Balance
|
|
Interest
|
|
Average
Yield/Rate
|
|||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans, including loan fees (1)(2)
|
$
|
2,257,033
|
|
|
$
|
125,715
|
|
|
5.57
|
%
|
|
$
|
2,127,470
|
|
|
$
|
114,140
|
|
|
5.37
|
%
|
|
$
|
1,899,225
|
|
|
$
|
100,905
|
|
|
5.31
|
%
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Taxable
|
276,742
|
|
|
7,584
|
|
|
2.74
|
%
|
|
261,107
|
|
|
6,068
|
|
|
2.32
|
%
|
|
238,433
|
|
|
4,728
|
|
|
1.98
|
%
|
||||||
Tax-exempt (2)
|
132,419
|
|
|
2,927
|
|
|
2.21
|
%
|
|
149,900
|
|
|
3,259
|
|
|
2.17
|
%
|
|
160,328
|
|
|
4,365
|
|
|
2.72
|
%
|
||||||
Other interest-earning assets
|
128,447
|
|
|
3,405
|
|
|
2.65
|
%
|
|
133,083
|
|
|
3,220
|
|
|
2.42
|
%
|
|
53,465
|
|
|
1,624
|
|
|
3.04
|
%
|
||||||
Total non-loan earning assets
|
537,608
|
|
|
13,916
|
|
|
2.59
|
%
|
|
544,090
|
|
|
12,547
|
|
|
2.31
|
%
|
|
452,226
|
|
|
10,717
|
|
|
2.37
|
%
|
||||||
Total interest-earning assets
|
2,794,641
|
|
|
$
|
139,631
|
|
|
5.00
|
%
|
|
2,671,560
|
|
|
$
|
126,687
|
|
|
4.74
|
%
|
|
2,351,451
|
|
|
$
|
111,622
|
|
|
4.75
|
%
|
|||
Other assets, net
|
331,894
|
|
|
|
|
|
|
305,897
|
|
|
|
|
|
|
297,303
|
|
|
|
|
|
||||||||||||
Total assets
|
$
|
3,126,535
|
|
|
|
|
|
|
$
|
2,977,457
|
|
|
|
|
|
|
$
|
2,648,754
|
|
|
|
|
|
|||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Savings
|
$
|
318,525
|
|
|
$
|
1,528
|
|
|
0.48
|
%
|
|
$
|
285,777
|
|
|
$
|
1,181
|
|
|
0.41
|
%
|
|
$
|
254,961
|
|
|
$
|
405
|
|
|
0.16
|
%
|
Interest-bearing demand
|
486,139
|
|
|
4,852
|
|
|
1.00
|
%
|
|
524,924
|
|
|
4,530
|
|
|
0.86
|
%
|
|
432,513
|
|
|
2,408
|
|
|
0.56
|
%
|
||||||
Money market accounts (“MMA”)
|
582,646
|
|
|
3,676
|
|
|
0.63
|
%
|
|
634,947
|
|
|
3,926
|
|
|
0.62
|
%
|
|
583,708
|
|
|
1,781
|
|
|
0.31
|
%
|
||||||
Core time deposits
|
402,141
|
|
|
8,136
|
|
|
2.02
|
%
|
|
337,100
|
|
|
5,266
|
|
|
1.56
|
%
|
|
292,084
|
|
|
2,323
|
|
|
0.80
|
%
|
||||||
Brokered deposits
|
75,159
|
|
|
773
|
|
|
1.03
|
%
|
|
91,379
|
|
|
517
|
|
|
0.57
|
%
|
|
119,234
|
|
|
769
|
|
|
0.65
|
%
|
||||||
Total interest-bearing deposits
|
1,864,610
|
|
|
18,965
|
|
|
1.02
|
%
|
|
1,874,127
|
|
|
15,420
|
|
|
0.82
|
%
|
|
1,682,500
|
|
|
7,686
|
|
|
0.46
|
%
|
||||||
Other interest-bearing liabilities
|
75,029
|
|
|
3,545
|
|
|
4.72
|
%
|
|
77,719
|
|
|
3,469
|
|
|
4.46
|
%
|
|
67,599
|
|
|
2,825
|
|
|
4.18
|
%
|
||||||
Total interest-bearing liabilities
|
1,939,639
|
|
|
22,510
|
|
|
1.16
|
%
|
|
1,951,846
|
|
|
18,889
|
|
|
0.97
|
%
|
|
1,750,099
|
|
|
10,511
|
|
|
0.60
|
%
|
||||||
Noninterest-bearing demand
|
733,661
|
|
|
|
|
|
|
|
634,825
|
|
|
|
|
|
|
|
545,908
|
|
|
|
|
|
|
|||||||||
Other liabilities
|
29,283
|
|
|
|
|
|
|
|
19,151
|
|
|
|
|
|
|
|
19,850
|
|
|
|
|
|
|
|||||||||
Stockholders’ equity
|
423,952
|
|
|
|
|
|
|
|
371,635
|
|
|
|
|
|
|
|
332,897
|
|
|
|
|
|
|
|||||||||
Total liabilities and stockholders’ equity
|
$
|
3,126,535
|
|
|
|
|
|
|
|
$
|
2,977,457
|
|
|
|
|
|
|
|
$
|
2,648,754
|
|
|
|
|
|
|
||||||
Tax-equivalent net interest income and rate spread
|
|
|
|
$
|
117,121
|
|
|
3.84
|
%
|
|
|
|
|
$
|
107,798
|
|
|
3.77
|
%
|
|
|
|
|
$
|
101,111
|
|
|
4.15
|
%
|
|||
Tax-equivalent adjustment and net free funds
|
|
|
1,043
|
|
|
0.35
|
%
|
|
|
|
1,150
|
|
|
0.27
|
%
|
|
|
|
2,369
|
|
|
0.15
|
%
|
|||||||||
Net interest income and net interest margin
|
|
|
|
$
|
116,078
|
|
|
4.19
|
%
|
|
|
|
|
$
|
106,648
|
|
|
4.04
|
%
|
|
|
|
|
$
|
98,742
|
|
|
4.30
|
%
|
(1)
|
Nonaccrual loans and loans held for sale are included in the daily average loan balances outstanding.
|
(2)
|
The yield on tax-exempt loans and tax-exempt investment securities is computed on a tax-equivalent basis using a federal tax rate of 21% for 2019 and 2018, and 35% for 2017, and adjusted for the disallowance of interest expense.
|
(in thousands)
|
2019 Compared to 2018
Increase (Decrease) Due to Changes in
|
|
2018 Compared to 2017
Increase (Decrease) Due to Changes in
|
||||||||||||||||||||
|
Volume
|
|
Rate
|
|
Net (1)
|
|
Volume
|
|
Rate
|
|
Net (1)
|
||||||||||||
Interest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans (2) (3)
|
$
|
7,347
|
|
|
$
|
4,228
|
|
|
$
|
11,575
|
|
|
$
|
12,551
|
|
|
$
|
684
|
|
|
$
|
13,235
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Taxable
|
638
|
|
|
878
|
|
|
1,516
|
|
|
991
|
|
|
349
|
|
|
1,340
|
|
||||||
Tax-exempt (3)
|
(385
|
)
|
|
53
|
|
|
(332
|
)
|
|
(272
|
)
|
|
(834
|
)
|
|
(1,106
|
)
|
||||||
Other interest-earning assets
|
(33
|
)
|
|
218
|
|
|
185
|
|
|
1,480
|
|
|
116
|
|
|
1,596
|
|
||||||
Total non-loan earning assets
|
220
|
|
|
1,149
|
|
|
1,369
|
|
|
2,199
|
|
|
(369
|
)
|
|
1,830
|
|
||||||
Total interest-earning assets
|
$
|
7,567
|
|
|
$
|
5,377
|
|
|
$
|
12,944
|
|
|
$
|
14,750
|
|
|
$
|
315
|
|
|
$
|
15,065
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Savings
|
$
|
145
|
|
|
$
|
202
|
|
|
$
|
347
|
|
|
$
|
54
|
|
|
$
|
722
|
|
|
$
|
776
|
|
Interest-bearing demand
|
(352
|
)
|
|
674
|
|
|
322
|
|
|
594
|
|
|
1,528
|
|
|
2,122
|
|
||||||
MMA
|
(329
|
)
|
|
79
|
|
|
(250
|
)
|
|
168
|
|
|
1,977
|
|
|
2,145
|
|
||||||
Core time deposits
|
1,134
|
|
|
1,736
|
|
|
2,870
|
|
|
406
|
|
|
2,537
|
|
|
2,943
|
|
||||||
Brokered deposits
|
(105
|
)
|
|
361
|
|
|
256
|
|
|
(165
|
)
|
|
(87
|
)
|
|
(252
|
)
|
||||||
Total interest-bearing deposits
|
493
|
|
|
3,052
|
|
|
3,545
|
|
|
1,057
|
|
|
6,677
|
|
|
7,734
|
|
||||||
Other interest-bearing liabilities
|
(32
|
)
|
|
108
|
|
|
76
|
|
|
298
|
|
|
346
|
|
|
644
|
|
||||||
Total interest-bearing liabilities
|
461
|
|
|
3,160
|
|
|
3,621
|
|
|
1,355
|
|
|
7,023
|
|
|
8,378
|
|
||||||
Net interest income
|
$
|
7,106
|
|
|
$
|
2,217
|
|
|
$
|
9,323
|
|
|
$
|
13,395
|
|
|
$
|
(6,708
|
)
|
|
$
|
6,687
|
|
(1)
|
The change in interest due to both rate and volume has been allocated in proportion to the relationship of dollar amounts of change in each.
|
(2)
|
Nonaccrual loans and loans held for sale are included in the daily average loan balances outstanding.
|
(3)
|
The yield on tax-exempt loans and tax-exempt investment securities is computed on a tax-equivalent basis using a federal tax rate of 21% for 2019 and 2018, and 35% for 2017, and adjusted for the disallowance of interest expense.
|
|
Years Ended December 31,
|
||||||||||||||||||||||||||||
(in thousands)
|
2019 Average
|
|
2018 Average
|
|
2017 Average
|
||||||||||||||||||||||||
|
Balance
|
|
% of
Earning
Assets
|
|
Yield/Rate
|
|
Balance
|
|
% of
Earning
Assets
|
|
Yield/Rate
|
|
Balance
|
|
% of
Earning
Assets
|
|
Yield/Rate
|
||||||||||||
Loans
|
$
|
2,257,033
|
|
|
81
|
%
|
|
5.57
|
%
|
|
$
|
2,127,470
|
|
|
80
|
%
|
|
5.37
|
%
|
|
$
|
1,899,225
|
|
|
81
|
%
|
|
5.31
|
%
|
Non-loan earning assets
|
537,608
|
|
|
19
|
%
|
|
2.59
|
%
|
|
544,090
|
|
|
20
|
%
|
|
2.31
|
%
|
|
452,226
|
|
|
19
|
%
|
|
2.37
|
%
|
|||
Total interest-earning assets
|
$
|
2,794,641
|
|
|
100
|
%
|
|
5.00
|
%
|
|
$
|
2,671,560
|
|
|
100
|
%
|
|
4.74
|
%
|
|
$
|
2,351,451
|
|
|
100
|
%
|
|
4.75
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing liabilities
|
$
|
1,939,639
|
|
|
69
|
%
|
|
1.16
|
%
|
|
$
|
1,951,846
|
|
|
73
|
%
|
|
0.97
|
%
|
|
$
|
1,750,099
|
|
|
74
|
%
|
|
0.60
|
%
|
Noninterest-bearing funds, net
|
855,002
|
|
|
31
|
%
|
|
|
|
719,714
|
|
|
27
|
%
|
|
|
|
601,352
|
|
|
26
|
%
|
|
|
||||||
Total funds sources
|
$
|
2,794,641
|
|
|
100
|
%
|
|
0.84
|
%
|
|
$
|
2,671,560
|
|
|
100
|
%
|
|
0.73
|
%
|
|
$
|
2,351,451
|
|
|
100
|
%
|
|
0.47
|
%
|
Interest rate spread
|
|
|
|
|
3.84
|
%
|
|
|
|
|
|
3.77
|
%
|
|
|
|
|
|
4.15
|
%
|
|||||||||
Contribution from net free funds
|
|
|
|
|
0.35
|
%
|
|
|
|
|
|
0.27
|
%
|
|
|
|
|
|
0.15
|
%
|
|||||||||
Net interest margin
|
|
|
|
|
4.19
|
%
|
|
|
|
|
|
4.04
|
%
|
|
|
|
|
|
4.30
|
%
|
(in thousands)
|
Years Ended December 31,
|
|
Change From Prior Year
|
||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
$ Change
2019
|
|
% Change
2019
|
|
$ Change
2018
|
|
% Change
2018
|
||||||||||||
Trust services fee income
|
$
|
6,227
|
|
|
$
|
6,498
|
|
|
$
|
6,031
|
|
|
$
|
(271
|
)
|
|
(4
|
)%
|
|
$
|
467
|
|
|
8
|
%
|
Brokerage fee income
|
8,115
|
|
|
7,042
|
|
|
5,736
|
|
|
1,073
|
|
|
15
|
%
|
|
1,306
|
|
|
23
|
%
|
|||||
Mortgage income, net
|
11,878
|
|
|
6,344
|
|
|
5,361
|
|
|
5,534
|
|
|
87
|
%
|
|
983
|
|
|
18
|
%
|
|||||
Service charges on deposit accounts
|
4,824
|
|
|
4,845
|
|
|
4,604
|
|
|
(21
|
)
|
|
—
|
%
|
|
241
|
|
|
5
|
%
|
|||||
Card interchange income
|
6,498
|
|
|
5,665
|
|
|
4,646
|
|
|
833
|
|
|
15
|
%
|
|
1,019
|
|
|
22
|
%
|
|||||
Bank owned life insurance (“BOLI”) income
|
2,369
|
|
|
2,418
|
|
|
1,778
|
|
|
(49
|
)
|
|
(2
|
)%
|
|
640
|
|
|
36
|
%
|
|||||
Other income
|
5,559
|
|
|
5,528
|
|
|
4,454
|
|
|
31
|
|
|
1
|
%
|
|
1,074
|
|
|
24
|
%
|
|||||
Noninterest income without net gains
|
45,470
|
|
|
38,340
|
|
|
32,610
|
|
|
7,130
|
|
|
19
|
%
|
|
5,730
|
|
|
18
|
%
|
|||||
Asset gains (losses), net
|
7,897
|
|
|
1,169
|
|
|
2,029
|
|
|
6,728
|
|
|
N/M
|
|
|
(860
|
)
|
|
N/M
|
|
|||||
Total noninterest income
|
$
|
53,367
|
|
|
$
|
39,509
|
|
|
$
|
34,639
|
|
|
$
|
13,858
|
|
|
35
|
%
|
|
$
|
4,870
|
|
|
14
|
%
|
Trust services fee income
& Brokerage fee income combined
|
$
|
14,342
|
|
|
$
|
13,540
|
|
|
$
|
11,767
|
|
|
$
|
802
|
|
|
6
|
%
|
|
$
|
1,773
|
|
|
15
|
%
|
N/M means not meaningful.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
Trust services fee income and brokerage fee income combined were $14.3 million for 2019, up $0.8 million or 6% from 2018, consistent with the growth in assets under management and including the migration of some trust accounts into brokerage accounts.
|
•
|
Mortgage income represents net gains received from the sale of residential real estate loans into the secondary market, capitalized mortgage servicing rights (“MSRs”), servicing fees, fair value marks on the mortgage interest rate lock commitments and forward commitments, offsetting MSR amortization, MSR valuation changes if any, and to a smaller degree some related income. Net mortgage income was $11.9 million for 2019, up $5.5 million or 87% over 2018, predominantly from higher gains on sale (including 76% more volume sold into the secondary market, aided by the current refinance boom and better pricing), higher MSR gains (reflective of greater volume), and increased net servicing fees on the growing portfolio of mortgage loans serviced for others, partially offset by unfavorable changes in the fair value of the mortgage-related derivatives. See also “Off-Balance Sheet Arrangements, Lending-Related Commitments and Contractual Obligations.”
|
•
|
Service charges on deposit accounts were minimally changed at $4.8 million for both 2019 and 2018. The change in the deposit base had minimal impact on service charges since most of the deposit growth of 2019 occurred in time deposits and the increase in the earnings credit rate in mid-2018 available to business transaction accounts mostly offset the charges that would have been earned on higher balances.
|
•
|
Card interchange income grew $0.8 million or 15% to $6.5 million in 2019 due to higher volume and activity.
|
•
|
BOLI income was minimally changed at $2.4 million for both years, attributable to the difference in BOLI death benefits received in each year (down $0.2 million), offset by income on the higher average balances largely from $5 million new BOLI purchased in mid-2019 and $6 million BOLI from the November 2019 acquisition.
|
•
|
Other income of $5.6 million was up slightly (1%) over 2018, as the fee earned on a customer loan interest rate swap in 2019 was substantially offset by lower income from the smaller equity interest in UFS, LLC given the previously noted sale.
|
•
|
The $7.9 million net asset gains in 2019 were comprised primarily of the $7.4 million gain on the equity investment sale in second quarter 2019 and $1.1 million of favorable fair value marks on equity securities, partially offset by losses of $0.6 million on the disposal and write-down of fixed assets, OREO, and an other investment. Net asset gains in 2018 of $1.2 million were primarily attributable to net gains on the sale of OREO and other assets. Additional information on the net gains is also included in Note 15, “Asset Gains (Losses), Net,” in the Notes to Consolidated Financial Statements, under Part II, Item 8.
|
($ in thousands)
|
Years Ended December 31,
|
|
Change From Prior Year
|
||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
Change
2019
|
|
% Change
2019
|
|
Change
2018
|
|
% Change
2018
|
||||||||||||
Personnel
|
$
|
54,437
|
|
|
$
|
49,476
|
|
|
$
|
44,458
|
|
|
$
|
4,961
|
|
|
10
|
%
|
|
$
|
5,018
|
|
|
11
|
%
|
Occupancy, equipment and office
|
14,788
|
|
|
14,574
|
|
|
13,308
|
|
|
214
|
|
|
1
|
%
|
|
1,266
|
|
|
10
|
%
|
|||||
Business development and marketing
|
5,685
|
|
|
5,324
|
|
|
4,700
|
|
|
361
|
|
|
7
|
%
|
|
624
|
|
|
13
|
%
|
|||||
Data processing
|
9,950
|
|
|
9,514
|
|
|
8,715
|
|
|
436
|
|
|
5
|
%
|
|
799
|
|
|
9
|
%
|
|||||
Intangibles amortization
|
3,872
|
|
|
4,389
|
|
|
4,695
|
|
|
(517
|
)
|
|
(12
|
)%
|
|
(306
|
)
|
|
(7
|
)%
|
|||||
Other expense
|
8,067
|
|
|
6,481
|
|
|
5,480
|
|
|
1,586
|
|
|
24
|
%
|
|
1,001
|
|
|
18
|
%
|
|||||
Total noninterest expense
|
$
|
96,799
|
|
|
$
|
89,758
|
|
|
$
|
81,356
|
|
|
$
|
7,041
|
|
|
8
|
%
|
|
$
|
8,402
|
|
|
10
|
%
|
Non-personnel expenses
|
$
|
42,362
|
|
|
$
|
40,282
|
|
|
$
|
36,898
|
|
|
$
|
2,080
|
|
|
5
|
%
|
|
$
|
3,384
|
|
|
9
|
%
|
Average full-time equivalent employees
|
560
|
|
|
553
|
|
|
522
|
|
|
7
|
|
|
1
|
%
|
|
31
|
|
|
6
|
%
|
•
|
Personnel expense (including salaries, brokerage variable pay, overtime, cash and equity incentives, and employee benefit and payroll-related expenses) was $54.4 million for 2019, up $5.0 million or 10% over 2018. As previously noted in the “Overview” section, $2.75 million of the increase in personnel expense was attributable to retirement-related compensation actions in second quarter 2019, including a discretionary profit sharing contribution of $1.05 million to the 401k plan and a $1.7 million contribution to the nonqualified deferred compensation plan. Consistent with our philosophy of aligning outcomes to customers, shareholders, and employees, the board approved these retirement-related compensation actions to benefit all employees following the recognition of the gain on the equity investment sale as previously noted. Personnel expense, excluding the $2.75 million, increased 4% over 2018, impacted by merit increases between the years (though on a minimally changed workforce, with average full-time equivalents up 1%), as well as higher cash and equity incentives.
|
•
|
Occupancy, equipment and office expense was $14.8 million for 2019, up $0.2 million or 1% from 2018, due to higher expense for software and technology solutions to drive operational efficiencies and product or service enhancements. Both periods also included accelerated depreciation or impairment charges given new branches or branch facility upgrades totaling $0.4 million in 2019 and $0.6 million in 2018.
|
•
|
Business development and marketing expense was $5.7 million for 2019, up $0.4 million or 7%, largely due to the timing and extent of donations, marketing campaigns, promotions, and media.
|
•
|
Data processing expense was $10.0 million for 2019, up $0.4 million or 5% over 2018, with volume-based increases in core processing charges partially offset by savings in data communication.
|
•
|
Intangible amortization decreased $0.5 million mainly from declining amortization on the aging intangibles of previous acquisitions, with minimal impact from the new intangible balances from the November 2019 acquisition given timing.
|
•
|
Other expense was $8.1 million for 2019, up $1.6 million or 24%, mostly due to a $0.7 million lease termination charge for the closure of Nicolet's Oshkosh branch in conjunction with the Choice acquisition and a $0.8 million full write-off of non-bank goodwill given a recent change in strategy. Both periods also included expense related to a 2018 fraud contingency loss matter totaling $0.7 million in 2019 and $0.5 million in 2018.
|
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2015
|
|||||||||||||||||||||||||
(in thousands)
|
Amount
|
|
% of
Total |
|
Amount
|
|
% of
Total |
|
Amount
|
|
% of
Total |
|
Amount
|
|
% of
Total |
|
Amount
|
|
% of
Total |
|||||||||||||||
Commercial & industrial
|
$
|
806,189
|
|
|
31
|
%
|
|
$
|
684,920
|
|
|
32
|
%
|
|
$
|
637,337
|
|
|
30
|
%
|
|
$
|
428,270
|
|
|
28
|
%
|
|
$
|
294,419
|
|
|
33
|
%
|
Owner-occupied CRE
|
496,372
|
|
|
19
|
%
|
|
441,353
|
|
|
20
|
%
|
|
430,043
|
|
|
21
|
%
|
|
360,227
|
|
|
23
|
%
|
|
185,285
|
|
|
21
|
%
|
|||||
AG production
|
35,982
|
|
|
2
|
%
|
|
35,625
|
|
|
2
|
%
|
|
35,455
|
|
|
2
|
%
|
|
34,767
|
|
|
2
|
%
|
|
15,018
|
|
|
2
|
%
|
|||||
Commercial
|
1,338,543
|
|
|
52
|
%
|
|
1,161,898
|
|
|
54
|
%
|
|
1,102,835
|
|
|
53
|
%
|
|
823,264
|
|
|
53
|
%
|
|
494,722
|
|
|
56
|
%
|
|||||
AG real estate
|
59,468
|
|
|
2
|
%
|
|
53,444
|
|
|
2
|
%
|
|
51,778
|
|
|
3
|
%
|
|
45,234
|
|
|
3
|
%
|
|
43,272
|
|
|
5
|
%
|
|||||
CRE investment
|
443,218
|
|
|
17
|
%
|
|
343,652
|
|
|
16
|
%
|
|
314,463
|
|
|
15
|
%
|
|
195,879
|
|
|
12
|
%
|
|
78,711
|
|
|
9
|
%
|
|||||
Construction & land development
|
92,970
|
|
|
4
|
%
|
|
80,599
|
|
|
4
|
%
|
|
89,660
|
|
|
4
|
%
|
|
74,988
|
|
|
5
|
%
|
|
36,775
|
|
|
4
|
%
|
|||||
Commercial real estate
|
595,656
|
|
|
23
|
%
|
|
477,695
|
|
|
22
|
%
|
|
455,901
|
|
|
22
|
%
|
|
316,101
|
|
|
20
|
%
|
|
158,758
|
|
|
18
|
%
|
|||||
Commercial-based
loans
|
1,934,199
|
|
|
75
|
%
|
|
1,639,593
|
|
|
76
|
%
|
|
1,558,736
|
|
|
75
|
%
|
|
1,139,365
|
|
|
73
|
%
|
|
653,480
|
|
|
74
|
%
|
|||||
Residential construction
|
54,403
|
|
|
2
|
%
|
|
30,926
|
|
|
1
|
%
|
|
36,995
|
|
|
2
|
%
|
|
23,392
|
|
|
1
|
%
|
|
10,443
|
|
|
1
|
%
|
|||||
Residential first mortgage
|
432,167
|
|
|
17
|
%
|
|
357,841
|
|
|
17
|
%
|
|
363,352
|
|
|
17
|
%
|
|
300,304
|
|
|
19
|
%
|
|
154,658
|
|
|
18
|
%
|
|||||
Residential junior mortgage
|
122,771
|
|
|
5
|
%
|
|
111,328
|
|
|
5
|
%
|
|
106,027
|
|
|
5
|
%
|
|
91,331
|
|
|
6
|
%
|
|
51,967
|
|
|
6
|
%
|
|||||
Residential real estate
|
609,341
|
|
|
24
|
%
|
|
500,095
|
|
|
23
|
%
|
|
506,374
|
|
|
24
|
%
|
|
415,027
|
|
|
26
|
%
|
|
217,068
|
|
|
25
|
%
|
|||||
Retail & other
|
30,211
|
|
|
1
|
%
|
|
26,493
|
|
|
1
|
%
|
|
22,815
|
|
|
1
|
%
|
|
14,515
|
|
|
1
|
%
|
|
6,513
|
|
|
1
|
%
|
|||||
Retail-based loans
|
639,552
|
|
|
25
|
%
|
|
526,588
|
|
|
24
|
%
|
|
529,189
|
|
|
25
|
%
|
|
429,542
|
|
|
27
|
%
|
|
223,581
|
|
|
26
|
%
|
|||||
Total loans
|
$
|
2,573,751
|
|
|
100
|
%
|
|
$
|
2,166,181
|
|
|
100
|
%
|
|
$
|
2,087,925
|
|
|
100
|
%
|
|
$
|
1,568,907
|
|
|
100
|
%
|
|
$
|
877,061
|
|
|
100
|
%
|
(in thousands)
|
Loan Maturity
|
||||||||||||||
|
One Year
or Less
|
|
Over One Year
to Five Years
|
|
Over
Five Years
|
|
Total
|
||||||||
Commercial & industrial
|
$
|
346,274
|
|
|
$
|
404,198
|
|
|
$
|
55,717
|
|
|
$
|
806,189
|
|
Owner-occupied CRE
|
76,516
|
|
|
338,393
|
|
|
81,463
|
|
|
496,372
|
|
||||
AG production
|
24,477
|
|
|
7,484
|
|
|
4,021
|
|
|
35,982
|
|
||||
AG real estate
|
21,342
|
|
|
35,996
|
|
|
2,130
|
|
|
59,468
|
|
||||
CRE investment
|
69,192
|
|
|
310,147
|
|
|
63,879
|
|
|
443,218
|
|
||||
Construction & land development
|
50,600
|
|
|
37,817
|
|
|
4,553
|
|
|
92,970
|
|
||||
Residential construction *
|
48,458
|
|
|
883
|
|
|
5,062
|
|
|
54,403
|
|
||||
Residential first mortgage
|
35,851
|
|
|
144,082
|
|
|
252,234
|
|
|
432,167
|
|
||||
Residential junior mortgage
|
9,370
|
|
|
7,816
|
|
|
105,585
|
|
|
122,771
|
|
||||
Retail & other
|
17,694
|
|
|
8,101
|
|
|
4,416
|
|
|
30,211
|
|
||||
Total loans
|
$
|
699,774
|
|
|
$
|
1,294,917
|
|
|
$
|
579,060
|
|
|
$
|
2,573,751
|
|
Percent by maturity distribution
|
27
|
%
|
|
50
|
%
|
|
23
|
%
|
|
100
|
%
|
||||
Fixed rate
|
$
|
328,825
|
|
|
$
|
1,228,218
|
|
|
$
|
274,149
|
|
|
$
|
1,831,192
|
|
Floating rate
|
370,949
|
|
|
66,699
|
|
|
304,911
|
|
|
742,559
|
|
||||
Total
|
$
|
699,774
|
|
|
$
|
1,294,917
|
|
|
$
|
579,060
|
|
|
$
|
2,573,751
|
|
Fixed rate percent
|
47
|
%
|
|
95
|
%
|
|
47
|
%
|
|
71
|
%
|
||||
Floating rate percent
|
53
|
%
|
|
5
|
%
|
|
53
|
%
|
|
29
|
%
|
(in thousands)
|
For the Years Ended December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance
|
$
|
13,153
|
|
|
$
|
12,653
|
|
|
$
|
11,820
|
|
|
$
|
10,307
|
|
|
$
|
9,288
|
|
Loans charged off:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial & industrial
|
(159
|
)
|
|
(813
|
)
|
|
(1,442
|
)
|
|
(279
|
)
|
|
(374
|
)
|
|||||
Owner-occupied CRE
|
(93
|
)
|
|
(74
|
)
|
|
—
|
|
|
(108
|
)
|
|
(229
|
)
|
|||||
AG production
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
AG real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
CRE investment
|
—
|
|
|
(37
|
)
|
|
—
|
|
|
—
|
|
|
(50
|
)
|
|||||
Construction & land development
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|||||
Residential construction
|
(226
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential first mortgage
|
(22
|
)
|
|
(85
|
)
|
|
(8
|
)
|
|
(80
|
)
|
|
(84
|
)
|
|||||
Residential junior mortgage
|
(80
|
)
|
|
—
|
|
|
(72
|
)
|
|
(57
|
)
|
|
(111
|
)
|
|||||
Retail & other
|
(347
|
)
|
|
(204
|
)
|
|
(69
|
)
|
|
(60
|
)
|
|
(35
|
)
|
|||||
Total loans charged off
|
(927
|
)
|
|
(1,213
|
)
|
|
(1,604
|
)
|
|
(584
|
)
|
|
(883
|
)
|
|||||
Recoveries of loans previously charged off:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial & industrial
|
420
|
|
|
43
|
|
|
38
|
|
|
26
|
|
|
36
|
|
|||||
Owner-occupied CRE
|
2
|
|
|
14
|
|
|
30
|
|
|
5
|
|
|
4
|
|
|||||
AG production
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
AG real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
CRE investment
|
—
|
|
|
—
|
|
|
1
|
|
|
221
|
|
|
17
|
|
|||||
Construction & land development
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential first mortgage
|
36
|
|
|
5
|
|
|
25
|
|
|
31
|
|
|
20
|
|
|||||
Residential junior mortgage
|
39
|
|
|
35
|
|
|
3
|
|
|
8
|
|
|
12
|
|
|||||
Retail & other
|
49
|
|
|
16
|
|
|
15
|
|
|
6
|
|
|
13
|
|
|||||
Total recoveries
|
546
|
|
|
113
|
|
|
112
|
|
|
297
|
|
|
102
|
|
|||||
Total net charge-offs
|
(381
|
)
|
|
(1,100
|
)
|
|
(1,492
|
)
|
|
(287
|
)
|
|
(781
|
)
|
|||||
Provision for loan losses
|
1,200
|
|
|
1,600
|
|
|
2,325
|
|
|
1,800
|
|
|
1,800
|
|
|||||
Ending balance of ALLL
|
$
|
13,972
|
|
|
$
|
13,153
|
|
|
$
|
12,653
|
|
|
$
|
11,820
|
|
|
$
|
10,307
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
ALLL to total loans
|
0.54
|
%
|
|
0.61
|
%
|
|
0.61
|
%
|
|
0.75
|
%
|
|
1.18
|
%
|
|||||
ALLL to net charge-offs
|
3,667
|
%
|
|
1,196
|
%
|
|
848
|
%
|
|
4,118
|
%
|
|
1,320
|
%
|
|||||
Net charge-offs to average loans
|
0.02
|
%
|
|
0.05
|
%
|
|
0.08
|
%
|
|
0.02
|
%
|
|
0.09
|
%
|
(in thousands)
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||
Nonaccrual assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial & industrial
|
$
|
6,249
|
|
|
$
|
2,816
|
|
|
$
|
6,016
|
|
|
$
|
358
|
|
|
$
|
204
|
|
Owner-occupied CRE
|
3,311
|
|
|
673
|
|
|
533
|
|
|
2,894
|
|
|
951
|
|
|||||
AG production
|
1,062
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
13
|
|
|||||
AG real estate
|
836
|
|
|
164
|
|
|
186
|
|
|
208
|
|
|
230
|
|
|||||
CRE investment
|
1,073
|
|
|
210
|
|
|
4,531
|
|
|
12,317
|
|
|
1,040
|
|
|||||
Construction & land development
|
20
|
|
|
80
|
|
|
—
|
|
|
1,193
|
|
|
280
|
|
|||||
Residential construction
|
—
|
|
|
1
|
|
|
80
|
|
|
260
|
|
|
—
|
|
|||||
Residential first mortgage
|
1,090
|
|
|
1,265
|
|
|
1,587
|
|
|
2,990
|
|
|
674
|
|
|||||
Residential junior mortgage
|
480
|
|
|
262
|
|
|
158
|
|
|
56
|
|
|
141
|
|
|||||
Retail & other
|
1
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|||||
Total nonaccrual loans
|
14,122
|
|
|
5,471
|
|
|
13,095
|
|
|
20,285
|
|
|
3,533
|
|
|||||
Accruing loans past due 90 days or more
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total nonperforming loans
|
14,122
|
|
|
5,471
|
|
|
13,095
|
|
|
20,285
|
|
|
3,533
|
|
|||||
OREO:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate owned
|
—
|
|
|
420
|
|
|
185
|
|
|
991
|
|
|
52
|
|
|||||
Residential real estate owned
|
—
|
|
|
—
|
|
|
70
|
|
|
29
|
|
|
—
|
|
|||||
Bank property real estate owned
|
1,000
|
|
|
—
|
|
|
1,039
|
|
|
1,039
|
|
|
315
|
|
|||||
Total OREO
|
1,000
|
|
|
420
|
|
|
1,294
|
|
|
2,059
|
|
|
367
|
|
|||||
Total nonperforming assets (NPAs)
|
$
|
15,122
|
|
|
$
|
5,891
|
|
|
$
|
14,389
|
|
|
$
|
22,344
|
|
|
$
|
3,900
|
|
Performing troubled debt restructurings
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Nonperforming loans to total loans
|
0.55
|
%
|
|
0.25
|
%
|
|
0.63
|
%
|
|
1.29
|
%
|
|
0.40
|
%
|
|||||
NPAs to total loans plus OREO
|
0.59
|
%
|
|
0.27
|
%
|
|
0.69
|
%
|
|
1.42
|
%
|
|
0.44
|
%
|
|||||
NPAs to total assets
|
0.42
|
%
|
|
0.19
|
%
|
|
0.49
|
%
|
|
0.97
|
%
|
|
0.32
|
%
|
|||||
ALLL to nonperforming loans
|
98.9
|
%
|
|
240.4
|
%
|
|
96.6
|
%
|
|
58.3
|
%
|
|
291.7
|
%
|
(in thousands)
|
For the Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Interest income in accordance with original terms
|
$
|
1,178
|
|
|
$
|
1,046
|
|
|
$
|
1,405
|
|
Interest income recognized
|
(935
|
)
|
|
(948
|
)
|
|
(1,130
|
)
|
|||
Reduction in interest income
|
$
|
243
|
|
|
$
|
98
|
|
|
$
|
275
|
|
(in thousands)
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2017
|
|||||||||||||||||||||||||||
|
Amortized
Cost
|
|
Fair
Value
|
|
% of
Total
|
|
Amortized
Cost
|
|
Fair
Value
|
|
% of
Total
|
|
Amortized
Cost
|
|
Fair
Value
|
|
% of
Total
|
|||||||||||||||
U.S. government agency securities
|
$
|
16,516
|
|
|
$
|
16,460
|
|
|
4
|
%
|
|
$
|
22,467
|
|
|
$
|
21,649
|
|
|
6
|
%
|
|
$
|
26,586
|
|
|
$
|
26,209
|
|
|
6
|
%
|
State, county and municipals
|
155,501
|
|
|
156,393
|
|
|
35
|
%
|
|
163,702
|
|
|
160,526
|
|
|
40
|
%
|
|
186,128
|
|
|
184,044
|
|
|
46
|
%
|
||||||
Mortgage-backed securities
|
193,223
|
|
|
195,018
|
|
|
43
|
%
|
|
134,350
|
|
|
131,644
|
|
|
33
|
%
|
|
157,705
|
|
|
155,532
|
|
|
38
|
%
|
||||||
Corporate debt securities
|
78,009
|
|
|
81,431
|
|
|
18
|
%
|
|
87,352
|
|
|
86,325
|
|
|
21
|
%
|
|
36,387
|
|
|
36,797
|
|
|
9
|
%
|
||||||
Equity securities *
|
—
|
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
1,287
|
|
|
2,571
|
|
|
1
|
%
|
||||||
Total securities AFS
|
$
|
443,249
|
|
|
$
|
449,302
|
|
|
100
|
%
|
|
$
|
407,871
|
|
|
$
|
400,144
|
|
|
100
|
%
|
|
$
|
408,093
|
|
|
$
|
405,153
|
|
|
100
|
%
|
December 31, 2019
|
Within
One Year
|
|
After One
but Within
Five Years
|
|
After Five
but Within
Ten Years
|
|
After
Ten Years
|
|
Mortgage-
related
Securities
|
|
Total
Amortized
Cost
|
|
Total
Fair
Value
|
||||||||||||||||||||||||||||||||
(in thousands)
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
||||||||||||||||||||
U.S. government agency securities
|
$
|
997
|
|
|
1.3
|
%
|
|
$
|
14,950
|
|
|
0.7
|
%
|
|
$
|
569
|
|
|
2.7
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
16,516
|
|
|
0.8
|
%
|
|
$
|
16,460
|
|
State, county and municipals
|
17,665
|
|
|
2.7
|
%
|
|
100,755
|
|
|
2.5
|
%
|
|
34,871
|
|
|
2.7
|
%
|
|
2,210
|
|
|
2.6
|
%
|
|
—
|
|
|
—
|
%
|
|
155,501
|
|
|
2.6
|
%
|
|
156,393
|
|
|||||||
Mortgage-backed securities
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
193,223
|
|
|
3.0
|
%
|
|
193,223
|
|
|
3.0
|
%
|
|
195,018
|
|
|||||||
Corporate debt securities
|
—
|
|
|
—
|
%
|
|
71,305
|
|
|
3.1
|
%
|
|
—
|
|
|
—
|
%
|
|
6,704
|
|
|
4.9
|
%
|
|
—
|
|
|
—
|
%
|
|
78,009
|
|
|
3.3
|
%
|
|
81,431
|
|
|||||||
Total amortized cost
|
$
|
18,662
|
|
|
2.6
|
%
|
|
$
|
187,010
|
|
|
2.6
|
%
|
|
$
|
35,440
|
|
|
2.7
|
%
|
|
$
|
8,914
|
|
|
4.4
|
%
|
|
$
|
193,223
|
|
|
3.0
|
%
|
|
$
|
443,249
|
|
|
2.8
|
%
|
|
$
|
449,302
|
|
Total fair value and carrying value
|
$
|
18,679
|
|
|
|
|
$
|
190,149
|
|
|
|
|
$
|
35,829
|
|
|
|
|
$
|
9,627
|
|
|
|
|
$
|
195,018
|
|
|
|
|
|
|
|
|
$
|
449,302
|
|
||||||||
|
4
|
%
|
|
|
|
42
|
%
|
|
|
|
8
|
%
|
|
|
|
2
|
%
|
|
|
|
44
|
%
|
|
|
|
|
|
|
|
100
|
%
|
(in thousands)
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2017
|
|||||||||||||||
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|||||||||
Noninterest-bearing demand
|
$
|
819,055
|
|
|
28
|
%
|
|
$
|
753,065
|
|
|
29
|
%
|
|
$
|
631,831
|
|
|
26
|
%
|
Money market and interest-bearing demand
|
1,241,642
|
|
|
42
|
%
|
|
1,163,369
|
|
|
45
|
%
|
|
1,222,401
|
|
|
49
|
%
|
|||
Savings
|
343,199
|
|
|
11
|
%
|
|
294,068
|
|
|
11
|
%
|
|
269,922
|
|
|
11
|
%
|
|||
Time
|
550,557
|
|
|
19
|
%
|
|
403,636
|
|
|
15
|
%
|
|
346,910
|
|
|
14
|
%
|
|||
Total deposits
|
$
|
2,954,453
|
|
|
100
|
%
|
|
$
|
2,614,138
|
|
|
100
|
%
|
|
$
|
2,471,064
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Brokered transaction accounts
|
$
|
48,497
|
|
|
1
|
%
|
|
$
|
62,021
|
|
|
2
|
%
|
|
$
|
76,141
|
|
|
3
|
%
|
Brokered time deposits
|
51,312
|
|
|
2
|
%
|
|
19,130
|
|
|
1
|
%
|
|
44,645
|
|
|
2
|
%
|
|||
Total brokered deposits
|
$
|
99,809
|
|
|
3
|
%
|
|
$
|
81,151
|
|
|
3
|
%
|
|
$
|
120,786
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Customer transaction accounts
|
2,355,399
|
|
|
80
|
%
|
|
$
|
2,148,481
|
|
|
82
|
%
|
|
$
|
2,048,013
|
|
|
83
|
%
|
|
Customer time deposits
|
499,245
|
|
|
17
|
%
|
|
384,506
|
|
|
15
|
%
|
|
302,265
|
|
|
12
|
%
|
|||
Total customer deposits (core)
|
$
|
2,854,644
|
|
|
97
|
%
|
|
$
|
2,532,987
|
|
|
97
|
%
|
|
$
|
2,350,278
|
|
|
95
|
%
|
(in thousands)
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||
3 months or less
|
$
|
55,464
|
|
|
$
|
28,466
|
|
|
$
|
21,847
|
|
Over 3 months through 6 months
|
55,000
|
|
|
30,438
|
|
|
15,552
|
|
|||
Over 6 months through 12 months
|
54,700
|
|
|
68,983
|
|
|
40,226
|
|
|||
Over 12 months
|
120,346
|
|
|
57,992
|
|
|
54,319
|
|
|||
Total
|
$
|
285,510
|
|
|
$
|
185,879
|
|
|
$
|
131,944
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||
200 bps decrease in interest rates
|
(1.8
|
)%
|
|
(0.6
|
)%
|
100 bps decrease in interest rates
|
(1.0
|
)%
|
|
—
|
%
|
100 bps increase in interest rates
|
0.8
|
%
|
|
(0.1
|
)%
|
200 bps increase in interest rates
|
1.7
|
%
|
|
—
|
%
|
($ in thousands)
|
December 31, 2019
|
|
December 31, 2018
|
||||
Company Stock Repurchases: *
|
|
|
|
||||
Common stock repurchased during the year (dollars)
|
$
|
18,701
|
|
|
$
|
22,178
|
|
Common stock repurchased during the year (shares)
|
310,781
|
|
|
408,071
|
|
||
Company Risk-Based Capital:
|
|
|
|
|
|
||
Total risk-based capital
|
$
|
404,573
|
|
|
$
|
326,235
|
|
Tier 1 risk-based capital
|
378,608
|
|
|
301,125
|
|
||
Common equity Tier 1 capital
|
348,454
|
|
|
271,435
|
|
||
Total capital ratio
|
13.4
|
%
|
|
12.9
|
%
|
||
Tier 1 capital ratio
|
12.6
|
%
|
|
11.9
|
%
|
||
Common equity tier 1 capital ratio
|
11.6
|
%
|
|
10.7
|
%
|
||
Tier 1 leverage ratio
|
11.9
|
%
|
|
10.4
|
%
|
||
Bank Risk-Based Capital:
|
|
|
|
|
|
||
Total risk-based capital
|
$
|
323,432
|
|
|
$
|
274,492
|
|
Tier 1 risk-based capital
|
309,460
|
|
|
261,339
|
|
||
Common equity Tier 1 capital
|
309,460
|
|
|
261,339
|
|
||
Total capital ratio
|
10.8
|
%
|
|
10.8
|
%
|
||
Tier 1 capital ratio
|
10.3
|
%
|
|
10.3
|
%
|
||
Common equity tier 1 capital ratio
|
10.3
|
%
|
|
10.3
|
%
|
||
Tier 1 leverage ratio
|
9.8
|
%
|
|
9.1
|
%
|
||
* Reflects only the common stock repurchased under board of director authorizations.
|
|
|
|
(in thousands)
|
Note
|
|
Maturity by Years
|
||||||||||||||||||
|
Reference
|
|
Total
|
|
1 or less
|
|
1-3
|
|
3-5
|
|
Over 5
|
||||||||||
Time deposits
|
7
|
|
$
|
550,557
|
|
|
$
|
317,693
|
|
|
$
|
165,677
|
|
|
$
|
64,813
|
|
|
$
|
2,374
|
|
Long-term borrowings
|
8
|
|
67,629
|
|
|
10,061
|
|
|
10,000
|
|
|
—
|
|
|
47,568
|
|
|||||
Operating leases
|
5
|
|
4,023
|
|
|
1,088
|
|
|
1,813
|
|
|
1,106
|
|
|
16
|
|
|||||
Total long-term contractual obligations
|
|
|
$
|
622,209
|
|
|
$
|
328,842
|
|
|
$
|
177,490
|
|
|
$
|
65,919
|
|
|
$
|
49,958
|
|
(in thousands, except per share data)
|
2019 Quarter Ended
|
||||||||||||||
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
||||||||
Interest income
|
$
|
36,192
|
|
|
$
|
34,667
|
|
|
$
|
34,570
|
|
|
$
|
33,159
|
|
Interest expense
|
5,723
|
|
|
5,477
|
|
|
5,626
|
|
|
5,684
|
|
||||
Net interest income
|
30,469
|
|
|
29,190
|
|
|
28,944
|
|
|
27,475
|
|
||||
Provision for loan losses
|
300
|
|
|
400
|
|
|
300
|
|
|
200
|
|
||||
Noninterest income
|
13,309
|
|
|
12,312
|
|
|
18,560
|
|
|
9,186
|
|
||||
Noninterest expense
|
25,426
|
|
|
22,887
|
|
|
25,727
|
|
|
22,759
|
|
||||
Income before income tax expense
|
18,052
|
|
|
18,215
|
|
|
21,477
|
|
|
13,702
|
|
||||
Income tax expense
|
5,670
|
|
|
4,603
|
|
|
2,833
|
|
|
3,352
|
|
||||
Net income
|
12,382
|
|
|
13,612
|
|
|
18,644
|
|
|
10,350
|
|
||||
Less: Net income attributable to noncontrolling interest
|
87
|
|
|
82
|
|
|
95
|
|
|
83
|
|
||||
Net income attributable to Nicolet Bankshares, Inc.
|
$
|
12,295
|
|
|
$
|
13,530
|
|
|
$
|
18,549
|
|
|
$
|
10,267
|
|
Basic earnings per common share*
|
$
|
1.22
|
|
|
$
|
1.45
|
|
|
$
|
1.98
|
|
|
$
|
1.09
|
|
Diluted earnings per common share*
|
$
|
1.18
|
|
|
$
|
1.40
|
|
|
$
|
1.91
|
|
|
$
|
1.05
|
|
|
2018 Quarter Ended
|
||||||||||||||
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
||||||||
Interest income
|
$
|
32,327
|
|
|
$
|
31,880
|
|
|
$
|
30,545
|
|
|
$
|
30,785
|
|
Interest expense
|
5,298
|
|
|
4,938
|
|
|
4,742
|
|
|
3,911
|
|
||||
Net interest income
|
27,029
|
|
|
26,942
|
|
|
25,803
|
|
|
26,874
|
|
||||
Provision for loan losses
|
240
|
|
|
340
|
|
|
510
|
|
|
510
|
|
||||
Noninterest income
|
9,797
|
|
|
10,649
|
|
|
10,239
|
|
|
8,824
|
|
||||
Noninterest expense
|
21,621
|
|
|
23,044
|
|
|
22,451
|
|
|
22,642
|
|
||||
Income before income tax expense
|
14,965
|
|
|
14,207
|
|
|
13,081
|
|
|
12,546
|
|
||||
Income tax expense
|
4,015
|
|
|
3,268
|
|
|
3,255
|
|
|
2,908
|
|
||||
Net income
|
10,950
|
|
|
10,939
|
|
|
9,826
|
|
|
9,638
|
|
||||
Less: Net income attributable to noncontrolling interest
|
87
|
|
|
80
|
|
|
89
|
|
|
61
|
|
||||
Net income attributable to Nicolet Bankshares, Inc.
|
$
|
10,863
|
|
|
$
|
10,859
|
|
|
$
|
9,737
|
|
|
$
|
9,577
|
|
Basic earnings per common share*
|
$
|
1.14
|
|
|
$
|
1.13
|
|
|
$
|
1.01
|
|
|
$
|
0.98
|
|
Diluted earnings per common share*
|
$
|
1.11
|
|
|
$
|
1.09
|
|
|
$
|
0.98
|
|
|
$
|
0.94
|
|
•
|
Net interest income was $106.6 million for 2018, an increase of $7.9 million or 8% compared to 2017, as we exercised discipline in the consistently rising rate environment of 2018. Interest income grew $16.3 million (overcoming $4.2 million lower aggregate discount income on purchased loans), aided by a 14% increase in average interest-earning assets and the elevated rate environment particularly on new, renewed and variable rate loans. Interest expense increased $8.4 million, primarily due to rising rates on a larger average deposit base, up 13% over 2017. The improvement consisted of favorable volume and mix variances, partially offset by net unfavorable rate variances from a flat earning asset yield and higher overall cost of funds between the periods. The earning asset yield was 4.74% for 2018 and 4.75% for 2017, influenced by the mix of underlying earning assets, particularly carrying a higher proportion of low-earning cash partly
|
•
|
Loans were $2.2 billion at December 31, 2018, an increase of $78 million or 4% over December 31, 2017. Average loans were $2.1 billion in 2018 yielding 5.37%, compared to $1.9 billion in 2017 yielding 5.31%, a 12% increase in average balances. Table 6 shows additional information on loans.
|
•
|
Total deposits were $2.6 billion at December 31, 2018, an increase of $143 million or 6% over December 31, 2017. Between 2018 and 2017, average deposits were up $281 million or 13%, with solid growth in noninterest-bearing demand deposits (up $89 million to represent 25% of total deposits for 2018 versus 24% for 2017). Tables 14 and 15 show additional information on deposits.
|
•
|
Asset quality measures remained strong. Nonperforming assets declined to $5.9 million, representing 0.19% of total assets at December 31, 2018, down favorably from 0.49% of assets at December 31, 2017. For 2018, the provision for loan losses was $1.6 million, exceeding net charge-offs of $1.1 million, versus provision of $2.3 million and net charge-offs of $1.5 million for 2017. The ALLL was $13.2 million at December 31, 2018 (representing 0.61% of loans), compared to $12.7 million (representing 0.61% of loans) at December 31, 2017. Tables 8, 9, 10, and 11 show additional information on asset quality measures.
|
•
|
Noninterest income was $39.5 million for 2018 (including $1.2 million of net asset gains), compared to $34.6 million for 2017 (including $2.0 million of net asset gains, largely from a $1.2 million gain to record the fair value of Nicolet's pre-acquisition interest in First Menasha and a $0.7 million gain on sale of assets). Removing these net gains, noninterest income was up $5.7 million or 18%, with increases in all line items. The most notable increases were trust and brokerage fees combined (up $1.8 million or 15%), card interchange income (up $1.0 million or 22%), and net mortgage income (up $1.0 million or 18%), all benefiting from increased business, and BOLI income (up $0.6 million, largely due to a death benefit in third quarter 2018). Table 4 shows additional noninterest income information.
|
•
|
Noninterest expense was $89.8 million for 2018, an increase of $8.4 million or 10% over 2017 noninterest expense of $81.4 million, mostly due to the larger operating base and continued investment in people and improvements. Personnel expense was $49.5 million for 2018, up $5.0 million or 11% over 2017, partly due to the expanded workforce (with average full-time equivalent employees up 6%), as well as merit increases, additional competitive market-based wage increases made after tax reform passed, higher cash and equity incentives, and higher health costs. All remaining noninterest expense categories on a combined basis grew $3.4 million or 9%, mostly due to the larger operating base, but also from $0.6 million higher charitable giving, $0.6 million accelerated depreciation given branch facility upgrades, and a $0.5 million fraud contingency loss in fourth quarter 2018. Table 5 shows additional noninterest expense information.
|
NICOLET BANKSHARES, INC.
Consolidated Balance Sheets
|
|
|
|
||||
(In thousands, except share and per share data)
|
December 31, 2019
|
|
December 31, 2018
|
||||
Assets
|
|
|
|
||||
Cash and due from banks
|
$
|
75,433
|
|
|
$
|
85,896
|
|
Interest-earning deposits
|
106,626
|
|
|
163,630
|
|
||
Federal funds sold
|
—
|
|
|
—
|
|
||
Cash and cash equivalents
|
182,059
|
|
|
249,526
|
|
||
Certificates of deposit in other banks
|
19,305
|
|
|
993
|
|
||
Securities available for sale (“AFS”), at fair value
|
449,302
|
|
|
400,144
|
|
||
Other investments
|
24,072
|
|
|
17,997
|
|
||
Loans held for sale
|
2,706
|
|
|
1,639
|
|
||
Loans
|
2,573,751
|
|
|
2,166,181
|
|
||
Allowance for loan losses
|
(13,972
|
)
|
|
(13,153
|
)
|
||
Loans, net
|
2,559,779
|
|
|
2,153,028
|
|
||
Premises and equipment, net
|
56,469
|
|
|
48,173
|
|
||
Bank owned life insurance (“BOLI”)
|
78,140
|
|
|
66,310
|
|
||
Goodwill and other intangibles, net
|
165,967
|
|
|
124,307
|
|
||
Accrued interest receivable and other assets
|
39,461
|
|
|
34,418
|
|
||
Total assets
|
$
|
3,577,260
|
|
|
$
|
3,096,535
|
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity
|
|
|
|
||||
Liabilities:
|
|
|
|
||||
Noninterest-bearing demand deposits
|
$
|
819,055
|
|
|
$
|
753,065
|
|
Interest-bearing deposits
|
2,135,398
|
|
|
1,861,073
|
|
||
Total deposits
|
2,954,453
|
|
|
2,614,138
|
|
||
Short-term borrowings
|
—
|
|
|
—
|
|
||
Long-term borrowings
|
67,629
|
|
|
77,305
|
|
||
Accrued interest payable and other liabilities
|
38,188
|
|
|
17,740
|
|
||
Total liabilities
|
3,060,270
|
|
|
2,709,183
|
|
||
Stockholders’ Equity:
|
|
|
|
||||
Common stock
|
106
|
|
|
95
|
|
||
Additional paid-in capital
|
312,733
|
|
|
247,790
|
|
||
Retained earnings
|
199,005
|
|
|
144,364
|
|
||
Accumulated other comprehensive income (loss)
|
4,418
|
|
|
(5,640
|
)
|
||
Total Nicolet Bankshares, Inc. stockholders’ equity
|
516,262
|
|
|
386,609
|
|
||
Noncontrolling interest
|
728
|
|
|
743
|
|
||
Total stockholders’ equity and noncontrolling interest
|
516,990
|
|
|
387,352
|
|
||
Total liabilities, noncontrolling interest and stockholders’ equity
|
$
|
3,577,260
|
|
|
$
|
3,096,535
|
|
|
|
|
|
||||
Preferred shares authorized (no par value)
|
10,000,000
|
|
|
10,000,000
|
|
||
Preferred shares issued and outstanding
|
—
|
|
|
—
|
|
||
Common shares authorized (par value $0.01 per share)
|
30,000,000
|
|
|
30,000,000
|
|
||
Common shares outstanding
|
10,587,738
|
|
|
9,495,265
|
|
||
Common shares issued
|
10,610,259
|
|
|
9,524,777
|
|
NICOLET BANKSHARES, INC.
Consolidated Statements of Income
|
Years Ended December 31,
|
||||||||||
(In thousands, except share and per share data)
|
2019
|
|
2018
|
|
2017
|
||||||
Interest income:
|
|
|
|
|
|
||||||
Loans, including loan fees
|
$
|
125,524
|
|
|
$
|
113,953
|
|
|
$
|
100,541
|
|
Investment securities:
|
|
|
|
|
|
||||||
Taxable
|
7,584
|
|
|
6,068
|
|
|
4,728
|
|
|||
Tax-exempt
|
2,075
|
|
|
2,296
|
|
|
2,360
|
|
|||
Other interest income
|
3,405
|
|
|
3,220
|
|
|
1,624
|
|
|||
Total interest income
|
138,588
|
|
|
125,537
|
|
|
109,253
|
|
|||
Interest expense:
|
|
|
|
|
|
||||||
Deposits
|
18,965
|
|
|
15,420
|
|
|
7,686
|
|
|||
Short-term borrowings
|
5
|
|
|
9
|
|
|
84
|
|
|||
Long-term borrowings
|
3,540
|
|
|
3,460
|
|
|
2,741
|
|
|||
Total interest expense
|
22,510
|
|
|
18,889
|
|
|
10,511
|
|
|||
Net interest income
|
116,078
|
|
|
106,648
|
|
|
98,742
|
|
|||
Provision for loan losses
|
1,200
|
|
|
1,600
|
|
|
2,325
|
|
|||
Net interest income after provision for loan losses
|
114,878
|
|
|
105,048
|
|
|
96,417
|
|
|||
Noninterest income:
|
|
|
|
|
|
||||||
Trust services fee income
|
6,227
|
|
|
6,498
|
|
|
6,031
|
|
|||
Brokerage fee income
|
8,115
|
|
|
7,042
|
|
|
5,736
|
|
|||
Mortgage income, net
|
11,878
|
|
|
6,344
|
|
|
5,361
|
|
|||
Service charges on deposit accounts
|
4,824
|
|
|
4,845
|
|
|
4,604
|
|
|||
Card interchange income
|
6,498
|
|
|
5,665
|
|
|
4,646
|
|
|||
BOLI income
|
2,369
|
|
|
2,418
|
|
|
1,778
|
|
|||
Asset gains (losses), net
|
7,897
|
|
|
1,169
|
|
|
2,029
|
|
|||
Other income
|
5,559
|
|
|
5,528
|
|
|
4,454
|
|
|||
Total noninterest income
|
53,367
|
|
|
39,509
|
|
|
34,639
|
|
|||
Noninterest expense:
|
|
|
|
|
|
||||||
Personnel
|
54,437
|
|
|
49,476
|
|
|
44,458
|
|
|||
Occupancy, equipment and office
|
14,788
|
|
|
14,574
|
|
|
13,308
|
|
|||
Business development and marketing
|
5,685
|
|
|
5,324
|
|
|
4,700
|
|
|||
Data processing
|
9,950
|
|
|
9,514
|
|
|
8,715
|
|
|||
Intangibles amortization
|
3,872
|
|
|
4,389
|
|
|
4,695
|
|
|||
Other expense
|
8,067
|
|
|
6,481
|
|
|
5,480
|
|
|||
Total noninterest expense
|
96,799
|
|
|
89,758
|
|
|
81,356
|
|
|||
Income before income tax expense
|
71,446
|
|
|
54,799
|
|
|
49,700
|
|
|||
Income tax expense
|
16,458
|
|
|
13,446
|
|
|
16,267
|
|
|||
Net income
|
54,988
|
|
|
41,353
|
|
|
33,433
|
|
|||
Less: Net income attributable to noncontrolling interest
|
347
|
|
|
317
|
|
|
283
|
|
|||
Net income attributable to Nicolet Bankshares, Inc.
|
$
|
54,641
|
|
|
$
|
41,036
|
|
|
$
|
33,150
|
|
Earnings per common share:
|
|
|
|
|
|
||||||
Basic
|
$
|
5.71
|
|
|
$
|
4.26
|
|
|
$
|
3.51
|
|
Diluted
|
$
|
5.52
|
|
|
$
|
4.12
|
|
|
$
|
3.33
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
||||||
Basic
|
9,561,978
|
|
|
9,640,258
|
|
|
9,439,951
|
|
|||
Diluted
|
9,900,319
|
|
|
9,956,353
|
|
|
9,958,160
|
|
NICOLET BANKSHARES, INC.
Consolidated Statements of Comprehensive Income
|
Years Ended December 31,
|
||||||||||
(In thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Net income
|
$
|
54,988
|
|
|
$
|
41,353
|
|
|
$
|
33,433
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
||||||
Unrealized gains (losses) on securities AFS:
|
|
|
|
|
|
||||||
Net unrealized holding gains (losses) arising during the period
|
13,758
|
|
|
(3,715
|
)
|
|
2,752
|
|
|||
Reclassification adjustment for net (gains) losses included in net income
|
22
|
|
|
212
|
|
|
(1,220
|
)
|
|||
Income tax (expense) benefit
|
(3,722
|
)
|
|
946
|
|
|
(598
|
)
|
|||
Total other comprehensive income (loss), net of tax
|
10,058
|
|
|
(2,557
|
)
|
|
934
|
|
|||
Comprehensive income
|
$
|
65,046
|
|
|
$
|
38,796
|
|
|
$
|
34,367
|
|
NICOLET BANKSHARES, INC.
Consolidated Statements of Changes in Stockholders' Equity
|
|||||||||||||||||||||||
|
|
|
|
||||||||||||||||||||
(In thousands)
|
Common
Stock
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Non-
controlling
Interest
|
|
Total
|
||||||||||||
Balances at December 31, 2016
|
$
|
86
|
|
|
$
|
209,700
|
|
|
$
|
68,888
|
|
|
$
|
(2,727
|
)
|
|
$
|
418
|
|
|
$
|
276,365
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
—
|
|
|
—
|
|
|
33,150
|
|
|
—
|
|
|
283
|
|
|
33,433
|
|
||||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
934
|
|
|
—
|
|
|
934
|
|
||||||
Stock-based compensation expense
|
—
|
|
|
3,064
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,064
|
|
||||||
Exercise of stock options, net
|
2
|
|
|
3,799
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,801
|
|
||||||
Issuance of common stock in acquisitions, net of capitalized issuance costs of $186
|
13
|
|
|
62,047
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
62,060
|
|
||||||
Issuance of common stock
|
—
|
|
|
229
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
229
|
|
||||||
Purchase and retirement of common stock
|
(3
|
)
|
|
(15,004
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15,007
|
)
|
||||||
Reclassification of stranded tax effects in accumulated other comprehensive income
|
—
|
|
|
—
|
|
|
353
|
|
|
(353
|
)
|
|
—
|
|
|
—
|
|
||||||
Balances at December 31, 2017
|
$
|
98
|
|
|
$
|
263,835
|
|
|
$
|
102,391
|
|
|
$
|
(2,146
|
)
|
|
$
|
701
|
|
|
$
|
364,879
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
—
|
|
|
—
|
|
|
41,036
|
|
|
—
|
|
|
317
|
|
|
41,353
|
|
||||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,557
|
)
|
|
—
|
|
|
(2,557
|
)
|
||||||
Stock-based compensation expense
|
—
|
|
|
4,901
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,901
|
|
||||||
Exercise of stock options, net
|
1
|
|
|
1,517
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,518
|
|
||||||
Issuance of common stock
|
—
|
|
|
282
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
282
|
|
||||||
Purchase and retirement of common stock
|
(4
|
)
|
|
(22,745
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(22,749
|
)
|
||||||
Distribution to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(275
|
)
|
|
(275
|
)
|
||||||
Adoption of ASU 2016-01 (See Note 1)
|
—
|
|
|
—
|
|
|
937
|
|
|
(937
|
)
|
|
—
|
|
|
—
|
|
||||||
Balances at December 31, 2018
|
$
|
95
|
|
|
$
|
247,790
|
|
|
$
|
144,364
|
|
|
$
|
(5,640
|
)
|
|
$
|
743
|
|
|
$
|
387,352
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
—
|
|
|
—
|
|
|
54,641
|
|
|
—
|
|
|
347
|
|
|
54,988
|
|
||||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
10,058
|
|
|
—
|
|
|
10,058
|
|
||||||
Stock-based compensation expense
|
—
|
|
|
5,038
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,038
|
|
||||||
Exercise of stock options, net
|
3
|
|
|
8,147
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,150
|
|
||||||
Issuance of common stock in acquisitions, net of capitalized issuance costs of $163
|
12
|
|
|
79,622
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
79,634
|
|
||||||
Issuance of common stock
|
—
|
|
|
592
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
592
|
|
||||||
Purchase and retirement of common stock
|
(4
|
)
|
|
(28,456
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(28,460
|
)
|
||||||
Distribution to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(362
|
)
|
|
(362
|
)
|
||||||
Balances at December 31, 2019
|
$
|
106
|
|
|
$
|
312,733
|
|
|
$
|
199,005
|
|
|
$
|
4,418
|
|
|
$
|
728
|
|
|
$
|
516,990
|
|
NICOLET BANKSHARES, INC.
Consolidated Statements of Cash Flows
|
Years Ended December 31,
|
||||||||||
(In thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Cash Flows From Operating Activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
54,988
|
|
|
$
|
41,353
|
|
|
$
|
33,433
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation, amortization and accretion
|
7,311
|
|
|
6,282
|
|
|
7,067
|
|
|||
Provision for loan losses
|
1,200
|
|
|
1,600
|
|
|
2,325
|
|
|||
Provision for deferred taxes
|
(2,652
|
)
|
|
(1,521
|
)
|
|
6,962
|
|
|||
Increase in cash surrender value of life insurance
|
(1,967
|
)
|
|
(1,857
|
)
|
|
(1,778
|
)
|
|||
Stock-based compensation expense
|
5,038
|
|
|
4,901
|
|
|
3,064
|
|
|||
Assets (gains) losses, net
|
(7,897
|
)
|
|
(1,169
|
)
|
|
(2,029
|
)
|
|||
Gain on sale of loans held for sale, net
|
(11,244
|
)
|
|
(5,499
|
)
|
|
(4,777
|
)
|
|||
Proceeds from sale of loans held for sale
|
425,530
|
|
|
241,739
|
|
|
222,879
|
|
|||
Origination of loans held for sale
|
(418,229
|
)
|
|
(234,416
|
)
|
|
(219,696
|
)
|
|||
Net change in accrued interest receivable and other assets
|
(2,951
|
)
|
|
(666
|
)
|
|
(5,360
|
)
|
|||
Net change in accrued interest payable and other liabilities
|
9,010
|
|
|
242
|
|
|
(1,377
|
)
|
|||
Net cash provided by operating activities
|
58,137
|
|
|
50,989
|
|
|
40,713
|
|
|||
Cash Flows From Investing Activities:
|
|
|
|
|
|
||||||
Net (increase) decrease in certificates of deposit in other banks
|
(1,924
|
)
|
|
753
|
|
|
2,238
|
|
|||
Purchases of securities AFS
|
(95,627
|
)
|
|
(76,564
|
)
|
|
(63,117
|
)
|
|||
Proceeds from sales of securities AFS
|
23,405
|
|
|
5,280
|
|
|
10,798
|
|
|||
Proceeds from calls and maturities of securities AFS
|
53,933
|
|
|
66,706
|
|
|
47,569
|
|
|||
Net (increase) decrease in loans
|
(57,156
|
)
|
|
(71,629
|
)
|
|
(160,624
|
)
|
|||
Purchases of other investments
|
(2,669
|
)
|
|
(1,550
|
)
|
|
(3,320
|
)
|
|||
Proceeds from sales of other investments
|
17,144
|
|
|
807
|
|
|
6,678
|
|
|||
Net increases in premises and equipment
|
(4,392
|
)
|
|
(4,260
|
)
|
|
(2,018
|
)
|
|||
Proceeds from sales of other real estate and other assets
|
457
|
|
|
2,824
|
|
|
1,724
|
|
|||
Purchase of BOLI
|
(5,000
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from redemption of BOLI
|
1,348
|
|
|
561
|
|
|
—
|
|
|||
Net cash received in business combinations
|
7,331
|
|
|
—
|
|
|
9,119
|
|
|||
Net cash provided by (used in) investing activities
|
(63,150
|
)
|
|
(77,072
|
)
|
|
(150,953
|
)
|
|||
Cash Flows From Financing Activities:
|
|
|
|
|
|
||||||
Net increase in deposits
|
49,259
|
|
|
143,153
|
|
|
126,782
|
|
|||
Net decrease in short-term borrowings
|
(4,233
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from long-term borrowings
|
—
|
|
|
—
|
|
|
30,000
|
|
|||
Repayments of long-term borrowings
|
(87,237
|
)
|
|
(1,253
|
)
|
|
(9,549
|
)
|
|||
Distribution to noncontrolling interest
|
(362
|
)
|
|
(275
|
)
|
|
—
|
|
|||
Capitalized issuance costs, net
|
(163
|
)
|
|
—
|
|
|
(186
|
)
|
|||
Purchase and retirement of common stock
|
(28,460
|
)
|
|
(22,749
|
)
|
|
(15,007
|
)
|
|||
Proceeds from issuance of common stock, net
|
8,742
|
|
|
1,800
|
|
|
4,030
|
|
|||
Net cash provided by (used in) financing activities
|
(62,454
|
)
|
|
120,676
|
|
|
136,070
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
(67,467
|
)
|
|
94,593
|
|
|
25,830
|
|
|||
Beginning cash and cash equivalents
|
249,526
|
|
|
154,933
|
|
|
129,103
|
|
|||
Ending cash and cash equivalents *
|
$
|
182,059
|
|
|
$
|
249,526
|
|
|
$
|
154,933
|
|
Supplemental Disclosures of Cash Flow Information:
|
|
|
|
|
|
||||||
Cash paid for interest
|
$
|
22,334
|
|
|
$
|
18,537
|
|
|
$
|
10,932
|
|
Cash paid for taxes
|
16,140
|
|
|
10,821
|
|
|
12,789
|
|
|||
Transfer of loans and bank premises to other real estate owned
|
1,025
|
|
|
607
|
|
|
828
|
|
|||
Capitalized mortgage servicing rights
|
2,876
|
|
|
1,203
|
|
|
876
|
|
|||
Transfer of loans from held for sale to held for investment
|
—
|
|
|
—
|
|
|
3,236
|
|
|||
Acquisitions:
|
|
|
|
|
|
||||||
Fair value of assets acquired
|
$
|
412,000
|
|
|
$
|
—
|
|
|
$
|
439,000
|
|
Fair value of liabilities assumed
|
377,000
|
|
|
—
|
|
|
398,000
|
|
|||
Net assets acquired
|
$
|
35,000
|
|
|
$
|
—
|
|
|
$
|
41,000
|
|
Common stock issued in acquisitions
|
79,797
|
|
|
—
|
|
|
62,246
|
|
|
|
|
|
Building and improvements
|
|
25 – 40 years
|
Leasehold improvements
|
|
5 – 15 years
|
Furniture and equipment
|
|
3 – 10 years
|
|
|
|
|
|
December 31, 2019
|
||||||||||||||
(in thousands)
|
Amortized
Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair
Value
|
||||||||
U.S. government agency securities
|
$
|
16,516
|
|
|
$
|
4
|
|
|
$
|
60
|
|
|
$
|
16,460
|
|
State, county and municipals
|
155,501
|
|
|
1,049
|
|
|
157
|
|
|
156,393
|
|
||||
Mortgage-backed securities
|
193,223
|
|
|
2,492
|
|
|
697
|
|
|
195,018
|
|
||||
Corporate debt securities
|
78,009
|
|
|
3,422
|
|
|
—
|
|
|
81,431
|
|
||||
|
$
|
443,249
|
|
|
$
|
6,967
|
|
|
$
|
914
|
|
|
$
|
449,302
|
|
|
December 31, 2018
|
||||||||||||||
(in thousands)
|
Amortized
Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair
Value
|
||||||||
U.S. government agency securities
|
$
|
22,467
|
|
|
$
|
—
|
|
|
$
|
818
|
|
|
$
|
21,649
|
|
State, county and municipals
|
163,702
|
|
|
76
|
|
|
3,252
|
|
|
160,526
|
|
||||
Mortgage-backed securities
|
134,350
|
|
|
328
|
|
|
3,034
|
|
|
131,644
|
|
||||
Corporate debt securities
|
87,352
|
|
|
66
|
|
|
1,093
|
|
|
86,325
|
|
||||
|
$
|
407,871
|
|
|
$
|
470
|
|
|
$
|
8,197
|
|
|
$
|
400,144
|
|
|
December 31, 2019
|
|||||||||||||||||||||||||
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
|||||||||||||||||||||
(in thousands)
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Number of Securities
|
|||||||||||||
U.S. government agency securities
|
$
|
1,035
|
|
|
$
|
2
|
|
|
$
|
11,091
|
|
|
$
|
58
|
|
|
$
|
12,126
|
|
|
$
|
60
|
|
|
6
|
|
State, county and municipals
|
22,451
|
|
|
132
|
|
|
7,605
|
|
|
25
|
|
|
30,056
|
|
|
157
|
|
|
56
|
|
||||||
Mortgage-backed securities
|
49,626
|
|
|
245
|
|
|
47,271
|
|
|
452
|
|
|
96,897
|
|
|
697
|
|
|
150
|
|
||||||
Corporate debt securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
$
|
73,112
|
|
|
$
|
379
|
|
|
$
|
65,967
|
|
|
$
|
535
|
|
|
$
|
139,079
|
|
|
$
|
914
|
|
|
212
|
|
|
December 31, 2018
|
|||||||||||||||||||||||||
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
|||||||||||||||||||||
(in thousands)
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Number of Securities
|
|||||||||||||
U.S. government agency securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
21,649
|
|
|
$
|
818
|
|
|
$
|
21,649
|
|
|
$
|
818
|
|
|
3
|
|
State, county and municipals
|
16,136
|
|
|
98
|
|
|
130,975
|
|
|
3,154
|
|
|
147,111
|
|
|
3,252
|
|
|
440
|
|
||||||
Mortgage-backed securities
|
20,568
|
|
|
132
|
|
|
89,189
|
|
|
2,902
|
|
|
109,757
|
|
|
3,034
|
|
|
204
|
|
||||||
Corporate debt securities
|
51,592
|
|
|
677
|
|
|
9,757
|
|
|
416
|
|
|
61,349
|
|
|
1,093
|
|
|
33
|
|
||||||
|
$
|
88,296
|
|
|
$
|
907
|
|
|
$
|
251,570
|
|
|
$
|
7,290
|
|
|
$
|
339,866
|
|
|
$
|
8,197
|
|
|
680
|
|
|
|
December 31, 2019
|
||||||
(in thousands)
|
Amortized Cost
|
|
Fair Value
|
||||
Due in less than one year
|
$
|
18,662
|
|
|
$
|
18,679
|
|
Due in one year through five years
|
187,010
|
|
|
190,149
|
|
||
Due after five years through ten years
|
35,440
|
|
|
35,829
|
|
||
Due after ten years
|
8,914
|
|
|
9,627
|
|
||
|
250,026
|
|
|
254,284
|
|
||
Mortgage-backed securities
|
193,223
|
|
|
195,018
|
|
||
Securities AFS
|
$
|
443,249
|
|
|
$
|
449,302
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Gross gains
|
$
|
152
|
|
|
$
|
—
|
|
|
$
|
1,227
|
|
Gross losses
|
(174
|
)
|
|
(212
|
)
|
|
(7
|
)
|
|||
Gains (losses) on sales of securities AFS, net
|
$
|
(22
|
)
|
|
$
|
(212
|
)
|
|
$
|
1,220
|
|
Proceeds from sales of securities AFS
|
$
|
23,405
|
|
|
$
|
5,280
|
|
|
$
|
10,798
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||
(in thousands)
|
Amount
|
|
% of Total
|
|
Amount
|
|
% of Total
|
||||||
Commercial & industrial
|
$
|
806,189
|
|
|
31
|
%
|
|
$
|
684,920
|
|
|
32
|
%
|
Owner-occupied commercial real estate (“CRE”)
|
496,372
|
|
|
19
|
|
|
441,353
|
|
|
20
|
|
||
Agricultural (“AG”) production
|
35,982
|
|
|
2
|
|
|
35,625
|
|
|
2
|
|
||
AG real estate
|
59,468
|
|
|
2
|
|
|
53,444
|
|
|
2
|
|
||
CRE investment
|
443,218
|
|
|
17
|
|
|
343,652
|
|
|
16
|
|
||
Construction & land development
|
92,970
|
|
|
4
|
|
|
80,599
|
|
|
4
|
|
||
Residential construction
|
54,403
|
|
|
2
|
|
|
30,926
|
|
|
1
|
|
||
Residential first mortgage
|
432,167
|
|
|
17
|
|
|
357,841
|
|
|
17
|
|
||
Residential junior mortgage
|
122,771
|
|
|
5
|
|
|
111,328
|
|
|
5
|
|
||
Retail & other
|
30,211
|
|
|
1
|
|
|
26,493
|
|
|
1
|
|
||
Loans
|
2,573,751
|
|
|
100
|
%
|
|
2,166,181
|
|
|
100
|
%
|
||
Less ALLL
|
13,972
|
|
|
|
|
13,153
|
|
|
|
||||
Loans, net
|
$
|
2,559,779
|
|
|
|
|
$
|
2,153,028
|
|
|
|
||
ALLL to loans
|
0.54
|
%
|
|
|
|
0.61
|
%
|
|
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||||
(in thousands)
|
Originated
Amount
|
|
% of
Total
|
|
Acquired
Amount
|
|
% of
Total
|
|
Originated
Amount
|
|
% of
Total
|
|
Acquired
Amount
|
|
% of
Total
|
||||||||||||
Commercial & industrial
|
$
|
641,341
|
|
|
39
|
%
|
|
$
|
164,848
|
|
|
18
|
%
|
|
$
|
568,100
|
|
|
38
|
%
|
|
$
|
116,820
|
|
|
17
|
%
|
Owner-occupied CRE
|
329,138
|
|
|
20
|
|
|
167,234
|
|
|
18
|
|
|
283,531
|
|
|
19
|
|
|
157,822
|
|
|
23
|
|
||||
AG production
|
11,824
|
|
|
1
|
|
|
24,158
|
|
|
3
|
|
|
11,113
|
|
|
1
|
|
|
24,512
|
|
|
4
|
|
||||
AG real estate
|
38,983
|
|
|
2
|
|
|
20,485
|
|
|
2
|
|
|
31,374
|
|
|
2
|
|
|
22,070
|
|
|
3
|
|
||||
CRE investment
|
183,746
|
|
|
11
|
|
|
259,472
|
|
|
28
|
|
|
171,087
|
|
|
12
|
|
|
172,565
|
|
|
25
|
|
||||
Construction & land development
|
56,086
|
|
|
3
|
|
|
36,884
|
|
|
4
|
|
|
66,478
|
|
|
4
|
|
|
14,121
|
|
|
2
|
|
||||
Residential construction
|
43,460
|
|
|
3
|
|
|
10,943
|
|
|
1
|
|
|
30,926
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||
Residential first mortgage
|
232,580
|
|
|
14
|
|
|
199,587
|
|
|
22
|
|
|
220,368
|
|
|
15
|
|
|
137,473
|
|
|
20
|
|
||||
Residential junior mortgage
|
90,284
|
|
|
5
|
|
|
32,487
|
|
|
4
|
|
|
78,379
|
|
|
5
|
|
|
32,949
|
|
|
5
|
|
||||
Retail & other
|
28,373
|
|
|
2
|
|
|
1,838
|
|
|
—
|
|
|
23,809
|
|
|
2
|
|
|
2,684
|
|
|
1
|
|
||||
Loans
|
1,655,815
|
|
|
100
|
%
|
|
917,936
|
|
|
100
|
%
|
|
1,485,165
|
|
|
100
|
%
|
|
681,016
|
|
|
100
|
%
|
||||
Less ALLL
|
12,116
|
|
|
|
|
1,856
|
|
|
|
|
11,448
|
|
|
|
|
1,705
|
|
|
|
||||||||
Loans, net
|
$
|
1,643,699
|
|
|
|
|
$
|
916,080
|
|
|
|
|
$
|
1,473,717
|
|
|
|
|
$
|
679,311
|
|
|
|
||||
ALLL to loans
|
0.73
|
%
|
|
|
|
0.20
|
%
|
|
|
|
0.77
|
%
|
|
|
|
0.25
|
%
|
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Beginning balance
|
$
|
13,153
|
|
|
$
|
12,653
|
|
|
$
|
11,820
|
|
Provision for loan losses
|
1,200
|
|
|
1,600
|
|
|
2,325
|
|
|||
Charge-offs
|
(927
|
)
|
|
(1,213
|
)
|
|
(1,604
|
)
|
|||
Recoveries
|
546
|
|
|
113
|
|
|
112
|
|
|||
Net charge-offs
|
(381
|
)
|
|
(1,100
|
)
|
|
(1,492
|
)
|
|||
Ending balance
|
$
|
13,972
|
|
|
$
|
13,153
|
|
|
$
|
12,653
|
|
|
|
TOTAL – Year Ended December 31, 2019
|
||||||||||||||||||||||||||||||||||||||||||
(in thousands)
|
Commercial
& industrial
|
|
Owner-
occupied
CRE
|
|
AG
production
|
|
AG real
estate
|
|
CRE
investment
|
|
Construction & land
development
|
|
Residential
construction
|
|
Residential
first mortgage
|
|
Residential
junior
mortgage
|
|
Retail
& other
|
|
Total
|
||||||||||||||||||||||
ALLL:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Beginning balance
|
$
|
5,271
|
|
|
$
|
2,847
|
|
|
$
|
121
|
|
|
$
|
301
|
|
|
$
|
1,470
|
|
|
$
|
510
|
|
|
$
|
211
|
|
|
$
|
1,646
|
|
|
$
|
472
|
|
|
$
|
304
|
|
|
$
|
13,153
|
|
Provision
|
(61
|
)
|
|
254
|
|
|
89
|
|
|
68
|
|
|
130
|
|
|
(96
|
)
|
|
383
|
|
|
9
|
|
|
86
|
|
|
338
|
|
|
1,200
|
|
|||||||||||
Charge-offs
|
(159
|
)
|
|
(93
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(226
|
)
|
|
(22
|
)
|
|
(80
|
)
|
|
(347
|
)
|
|
(927
|
)
|
|||||||||||
Recoveries
|
420
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
39
|
|
|
49
|
|
|
546
|
|
|||||||||||
Net charge-offs
|
261
|
|
|
(91
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(226
|
)
|
|
14
|
|
|
(41
|
)
|
|
(298
|
)
|
|
(381
|
)
|
|||||||||||
Ending balance
|
$
|
5,471
|
|
|
$
|
3,010
|
|
|
$
|
210
|
|
|
$
|
369
|
|
|
$
|
1,600
|
|
|
$
|
414
|
|
|
$
|
368
|
|
|
$
|
1,669
|
|
|
$
|
517
|
|
|
$
|
344
|
|
|
$
|
13,972
|
|
As % of ALLL
|
39
|
%
|
|
22
|
%
|
|
1
|
%
|
|
3
|
%
|
|
11
|
%
|
|
3
|
%
|
|
3
|
%
|
|
12
|
%
|
|
4
|
%
|
|
2
|
%
|
|
100
|
%
|
|||||||||||
ALLL:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Individually evaluated
|
$
|
625
|
|
|
$
|
—
|
|
|
$
|
116
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
741
|
|
Collectively evaluated
|
4,846
|
|
|
3,010
|
|
|
94
|
|
|
369
|
|
|
1,600
|
|
|
414
|
|
|
368
|
|
|
1,669
|
|
|
517
|
|
|
344
|
|
|
13,231
|
|
|||||||||||
Ending balance
|
$
|
5,471
|
|
|
$
|
3,010
|
|
|
$
|
210
|
|
|
$
|
369
|
|
|
$
|
1,600
|
|
|
$
|
414
|
|
|
$
|
368
|
|
|
$
|
1,669
|
|
|
$
|
517
|
|
|
$
|
344
|
|
|
$
|
13,972
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Individually evaluated
|
$
|
5,932
|
|
|
$
|
3,430
|
|
|
$
|
1,061
|
|
|
$
|
1,073
|
|
|
$
|
2,426
|
|
|
$
|
382
|
|
|
$
|
—
|
|
|
$
|
2,357
|
|
|
$
|
218
|
|
|
$
|
12
|
|
|
$
|
16,891
|
|
Collectively evaluated
|
800,257
|
|
|
492,942
|
|
|
34,921
|
|
|
58,395
|
|
|
440,792
|
|
|
92,588
|
|
|
54,403
|
|
|
429,810
|
|
|
122,553
|
|
|
30,199
|
|
|
2,556,860
|
|
|||||||||||
Total loans
|
$
|
806,189
|
|
|
$
|
496,372
|
|
|
$
|
35,982
|
|
|
$
|
59,468
|
|
|
$
|
443,218
|
|
|
$
|
92,970
|
|
|
$
|
54,403
|
|
|
$
|
432,167
|
|
|
$
|
122,771
|
|
|
$
|
30,211
|
|
|
$
|
2,573,751
|
|
Less ALLL
|
5,471
|
|
|
3,010
|
|
|
210
|
|
|
369
|
|
|
1,600
|
|
|
414
|
|
|
368
|
|
|
1,669
|
|
|
517
|
|
|
344
|
|
|
13,972
|
|
|||||||||||
Net loans
|
$
|
800,718
|
|
|
$
|
493,362
|
|
|
$
|
35,772
|
|
|
$
|
59,099
|
|
|
$
|
441,618
|
|
|
$
|
92,556
|
|
|
$
|
54,035
|
|
|
$
|
430,498
|
|
|
$
|
122,254
|
|
|
$
|
29,867
|
|
|
$
|
2,559,779
|
|
|
|
Originated – Year Ended December 31, 2019
|
||||||||||||||||||||||||||||||||||||||||||
(in thousands)
|
Commercial
& industrial
|
|
Owner-
occupied
CRE
|
|
AG
production
|
|
AG real
estate
|
|
CRE
investment
|
|
Construction & land
development
|
|
Residential
construction
|
|
Residential
first mortgage
|
|
Residential
junior
mortgage
|
|
Retail
& other
|
|
Total
|
||||||||||||||||||||||
ALLL:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Beginning balance
|
$
|
4,683
|
|
|
$
|
2,439
|
|
|
$
|
110
|
|
|
$
|
255
|
|
|
$
|
1,230
|
|
|
$
|
431
|
|
|
$
|
211
|
|
|
$
|
1,400
|
|
|
$
|
408
|
|
|
$
|
281
|
|
|
$
|
11,448
|
|
Provision
|
(207
|
)
|
|
212
|
|
|
85
|
|
|
57
|
|
|
124
|
|
|
(81
|
)
|
|
340
|
|
|
5
|
|
|
25
|
|
|
335
|
|
|
895
|
|
|||||||||||
Charge-offs
|
(59
|
)
|
|
(93
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(226
|
)
|
|
(22
|
)
|
|
(20
|
)
|
|
(347
|
)
|
|
(767
|
)
|
|||||||||||
Recoveries
|
420
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
33
|
|
|
49
|
|
|
540
|
|
|||||||||||
Net charge-offs
|
361
|
|
|
(91
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(226
|
)
|
|
14
|
|
|
13
|
|
|
(298
|
)
|
|
(227
|
)
|
|||||||||||
Ending balance
|
$
|
4,837
|
|
|
$
|
2,560
|
|
|
$
|
195
|
|
|
$
|
312
|
|
|
$
|
1,354
|
|
|
$
|
350
|
|
|
$
|
325
|
|
|
$
|
1,419
|
|
|
$
|
446
|
|
|
$
|
318
|
|
|
$
|
12,116
|
|
As % of ALLL
|
40
|
%
|
|
21
|
%
|
|
2
|
%
|
|
2
|
%
|
|
11
|
%
|
|
3
|
%
|
|
3
|
%
|
|
12
|
%
|
|
4
|
%
|
|
2
|
%
|
|
100
|
%
|
|||||||||||
ALLL:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Individually evaluated
|
$
|
625
|
|
|
$
|
—
|
|
|
$
|
116
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
741
|
|
Collectively evaluated
|
4,212
|
|
|
2,560
|
|
|
79
|
|
|
312
|
|
|
1,354
|
|
|
350
|
|
|
325
|
|
|
1,419
|
|
|
446
|
|
|
318
|
|
|
11,375
|
|
|||||||||||
Ending balance
|
$
|
4,837
|
|
|
$
|
2,560
|
|
|
$
|
195
|
|
|
$
|
312
|
|
|
$
|
1,354
|
|
|
$
|
350
|
|
|
$
|
325
|
|
|
$
|
1,419
|
|
|
$
|
446
|
|
|
$
|
318
|
|
|
$
|
12,116
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Individually evaluated
|
$
|
1,993
|
|
|
$
|
1,845
|
|
|
$
|
1,008
|
|
|
$
|
862
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,708
|
|
Collectively evaluated
|
639,348
|
|
|
327,293
|
|
|
10,816
|
|
|
38,121
|
|
|
183,746
|
|
|
56,086
|
|
|
43,460
|
|
|
232,580
|
|
|
90,284
|
|
|
28,373
|
|
|
1,650,107
|
|
|||||||||||
Total loans
|
$
|
641,341
|
|
|
$
|
329,138
|
|
|
$
|
11,824
|
|
|
$
|
38,983
|
|
|
$
|
183,746
|
|
|
$
|
56,086
|
|
|
$
|
43,460
|
|
|
$
|
232,580
|
|
|
$
|
90,284
|
|
|
$
|
28,373
|
|
|
$
|
1,655,815
|
|
Less ALLL
|
4,837
|
|
|
2,560
|
|
|
195
|
|
|
312
|
|
|
1,354
|
|
|
350
|
|
|
325
|
|
|
1,419
|
|
|
446
|
|
|
318
|
|
|
12,116
|
|
|||||||||||
Net loans
|
$
|
636,504
|
|
|
$
|
326,578
|
|
|
$
|
11,629
|
|
|
$
|
38,671
|
|
|
$
|
182,392
|
|
|
$
|
55,736
|
|
|
$
|
43,135
|
|
|
$
|
231,161
|
|
|
$
|
89,838
|
|
|
$
|
28,055
|
|
|
$
|
1,643,699
|
|
|
Acquired – Year Ended December 31, 2019
|
||||||||||||||||||||||||||||||||||||||||||
(in thousands)
|
Commercial
& industrial
|
|
Owner-
occupied
CRE
|
|
AG
production
|
|
AG real
estate
|
|
CRE
investment
|
|
Construction & land
development
|
|
Residential
construction
|
|
Residential
first mortgage
|
|
Residential
junior
mortgage
|
|
Retail
& other
|
|
Total
|
||||||||||||||||||||||
ALLL:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Beginning balance
|
$
|
588
|
|
|
$
|
408
|
|
|
$
|
11
|
|
|
$
|
46
|
|
|
$
|
240
|
|
|
$
|
79
|
|
|
$
|
—
|
|
|
$
|
246
|
|
|
$
|
64
|
|
|
$
|
23
|
|
|
$
|
1,705
|
|
Provision
|
146
|
|
|
42
|
|
|
4
|
|
|
11
|
|
|
6
|
|
|
(15
|
)
|
|
43
|
|
|
4
|
|
|
61
|
|
|
3
|
|
|
305
|
|
|||||||||||
Charge-offs
|
(100
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(60
|
)
|
|
—
|
|
|
(160
|
)
|
|||||||||||
Recoveries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|||||||||||
Net charge-offs
|
(100
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(54
|
)
|
|
—
|
|
|
(154
|
)
|
|||||||||||
Ending balance
|
$
|
634
|
|
|
$
|
450
|
|
|
$
|
15
|
|
|
$
|
57
|
|
|
$
|
246
|
|
|
$
|
64
|
|
|
$
|
43
|
|
|
$
|
250
|
|
|
$
|
71
|
|
|
$
|
26
|
|
|
$
|
1,856
|
|
As % of ALLL
|
34
|
%
|
|
24
|
%
|
|
1
|
%
|
|
3
|
%
|
|
13
|
%
|
|
4
|
%
|
|
2
|
%
|
|
14
|
%
|
|
4
|
%
|
|
1
|
%
|
|
100
|
%
|
|||||||||||
ALLL:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Individually evaluated
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Collectively evaluated
|
634
|
|
|
450
|
|
|
15
|
|
|
57
|
|
|
246
|
|
|
64
|
|
|
43
|
|
|
250
|
|
|
71
|
|
|
26
|
|
|
1,856
|
|
|||||||||||
Ending balance
|
$
|
634
|
|
|
$
|
450
|
|
|
$
|
15
|
|
|
$
|
57
|
|
|
$
|
246
|
|
|
$
|
64
|
|
|
$
|
43
|
|
|
$
|
250
|
|
|
$
|
71
|
|
|
$
|
26
|
|
|
$
|
1,856
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Individually evaluated
|
$
|
3,939
|
|
|
$
|
1,585
|
|
|
$
|
53
|
|
|
$
|
211
|
|
|
$
|
2,426
|
|
|
$
|
382
|
|
|
$
|
—
|
|
|
$
|
2,357
|
|
|
$
|
218
|
|
|
$
|
12
|
|
|
$
|
11,183
|
|
Collectively evaluated
|
160,909
|
|
|
165,649
|
|
|
24,105
|
|
|
20,274
|
|
|
257,046
|
|
|
36,502
|
|
|
10,943
|
|
|
197,230
|
|
|
32,269
|
|
|
1,826
|
|
|
906,753
|
|
|||||||||||
Total loans
|
$
|
164,848
|
|
|
$
|
167,234
|
|
|
$
|
24,158
|
|
|
$
|
20,485
|
|
|
$
|
259,472
|
|
|
$
|
36,884
|
|
|
$
|
10,943
|
|
|
$
|
199,587
|
|
|
$
|
32,487
|
|
|
$
|
1,838
|
|
|
$
|
917,936
|
|
Less ALLL
|
634
|
|
|
450
|
|
|
15
|
|
|
57
|
|
|
246
|
|
|
64
|
|
|
43
|
|
|
250
|
|
|
71
|
|
|
26
|
|
|
1,856
|
|
|||||||||||
Net loans
|
$
|
164,214
|
|
|
$
|
166,784
|
|
|
$
|
24,143
|
|
|
$
|
20,428
|
|
|
$
|
259,226
|
|
|
$
|
36,820
|
|
|
$
|
10,900
|
|
|
$
|
199,337
|
|
|
$
|
32,416
|
|
|
$
|
1,812
|
|
|
$
|
916,080
|
|
|
|
TOTAL – Year Ended December 31, 2018
|
||||||||||||||||||||||||||||||||||||||||||
(in thousands)
|
Commercial
& industrial
|
|
Owner-
occupied
CRE
|
|
AG
production
|
|
AG real
estate
|
|
CRE
investment
|
|
Construction & land
development
|
|
Residential
construction
|
|
Residential
first mortgage
|
|
Residential
junior
mortgage
|
|
Retail
& other
|
|
Total
|
||||||||||||||||||||||
ALLL:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Beginning balance
|
$
|
4,934
|
|
|
$
|
2,607
|
|
|
$
|
129
|
|
|
$
|
296
|
|
|
$
|
1,388
|
|
|
$
|
726
|
|
|
$
|
251
|
|
|
$
|
1,609
|
|
|
$
|
488
|
|
|
$
|
225
|
|
|
$
|
12,653
|
|
Provision
|
1,107
|
|
|
300
|
|
|
(8
|
)
|
|
5
|
|
|
119
|
|
|
(216
|
)
|
|
(40
|
)
|
|
117
|
|
|
(51
|
)
|
|
267
|
|
|
1,600
|
|
|||||||||||
Charge-offs
|
(813
|
)
|
|
(74
|
)
|
|
—
|
|
|
—
|
|
|
(37
|
)
|
|
—
|
|
|
—
|
|
|
(85
|
)
|
|
—
|
|
|
(204
|
)
|
|
(1,213
|
)
|
|||||||||||
Recoveries
|
43
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
35
|
|
|
16
|
|
|
113
|
|
|||||||||||
Net charge-offs
|
(770
|
)
|
|
(60
|
)
|
|
—
|
|
|
—
|
|
|
(37
|
)
|
|
—
|
|
|
—
|
|
|
(80
|
)
|
|
35
|
|
|
(188
|
)
|
|
(1,100
|
)
|
|||||||||||
Ending balance
|
$
|
5,271
|
|
|
$
|
2,847
|
|
|
$
|
121
|
|
|
$
|
301
|
|
|
$
|
1,470
|
|
|
$
|
510
|
|
|
$
|
211
|
|
|
$
|
1,646
|
|
|
$
|
472
|
|
|
$
|
304
|
|
|
$
|
13,153
|
|
As % of ALLL
|
40
|
%
|
|
22
|
%
|
|
1
|
%
|
|
2
|
%
|
|
11
|
%
|
|
4
|
%
|
|
2
|
%
|
|
12
|
%
|
|
4
|
%
|
|
2
|
%
|
|
100
|
%
|
|||||||||||
ALLL:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Individually evaluated
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Collectively evaluated
|
5,271
|
|
|
2,847
|
|
|
121
|
|
|
301
|
|
|
1,470
|
|
|
510
|
|
|
211
|
|
|
1,646
|
|
|
472
|
|
|
304
|
|
|
13,153
|
|
|||||||||||
Ending balance
|
$
|
5,271
|
|
|
$
|
2,847
|
|
|
$
|
121
|
|
|
$
|
301
|
|
|
$
|
1,470
|
|
|
$
|
510
|
|
|
$
|
211
|
|
|
$
|
1,646
|
|
|
$
|
472
|
|
|
$
|
304
|
|
|
$
|
13,153
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Individually evaluated
|
$
|
2,927
|
|
|
$
|
1,506
|
|
|
$
|
—
|
|
|
$
|
222
|
|
|
$
|
1,686
|
|
|
$
|
603
|
|
|
$
|
—
|
|
|
$
|
2,750
|
|
|
$
|
233
|
|
|
$
|
12
|
|
|
$
|
9,939
|
|
Collectively evaluated
|
681,993
|
|
|
439,847
|
|
|
35,625
|
|
|
53,222
|
|
|
341,966
|
|
|
79,996
|
|
|
30,926
|
|
|
355,091
|
|
|
111,095
|
|
|
26,481
|
|
|
2,156,242
|
|
|||||||||||
Total loans
|
$
|
684,920
|
|
|
$
|
441,353
|
|
|
$
|
35,625
|
|
|
$
|
53,444
|
|
|
$
|
343,652
|
|
|
$
|
80,599
|
|
|
$
|
30,926
|
|
|
$
|
357,841
|
|
|
$
|
111,328
|
|
|
$
|
26,493
|
|
|
$
|
2,166,181
|
|
Less ALLL
|
5,271
|
|
|
2,847
|
|
|
121
|
|
|
301
|
|
|
1,470
|
|
|
510
|
|
|
211
|
|
|
1,646
|
|
|
472
|
|
|
304
|
|
|
13,153
|
|
|||||||||||
Net loans
|
$
|
679,649
|
|
|
$
|
438,506
|
|
|
$
|
35,504
|
|
|
$
|
53,143
|
|
|
$
|
342,182
|
|
|
$
|
80,089
|
|
|
$
|
30,715
|
|
|
$
|
356,195
|
|
|
$
|
110,856
|
|
|
$
|
26,189
|
|
|
$
|
2,153,028
|
|
|
Originated – Year Ended December 31, 2018
|
||||||||||||||||||||||||||||||||||||||||||
(in thousands)
|
Commercial
& industrial
|
|
Owner-
occupied
CRE
|
|
AG
production
|
|
AG real
estate
|
|
CRE
investment
|
|
Construction & land
development
|
|
Residential
construction
|
|
Residential
first mortgage
|
|
Residential
junior
mortgage
|
|
Retail
& other
|
|
Total
|
||||||||||||||||||||||
ALLL:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Beginning balance
|
$
|
4,192
|
|
|
$
|
2,115
|
|
|
$
|
112
|
|
|
$
|
235
|
|
|
$
|
1,154
|
|
|
$
|
628
|
|
|
$
|
200
|
|
|
$
|
1,297
|
|
|
$
|
409
|
|
|
$
|
200
|
|
|
$
|
10,542
|
|
Provision
|
1,262
|
|
|
385
|
|
|
(2
|
)
|
|
20
|
|
|
113
|
|
|
(197
|
)
|
|
11
|
|
|
187
|
|
|
(31
|
)
|
|
266
|
|
|
2,014
|
|
|||||||||||
Charge-offs
|
(813
|
)
|
|
(64
|
)
|
|
—
|
|
|
—
|
|
|
(37
|
)
|
|
—
|
|
|
—
|
|
|
(85
|
)
|
|
—
|
|
|
(201
|
)
|
|
(1,200
|
)
|
|||||||||||
Recoveries
|
42
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
30
|
|
|
16
|
|
|
92
|
|
|||||||||||
Net charge-offs
|
(771
|
)
|
|
(61
|
)
|
|
—
|
|
|
—
|
|
|
(37
|
)
|
|
—
|
|
|
—
|
|
|
(84
|
)
|
|
30
|
|
|
(185
|
)
|
|
(1,108
|
)
|
|||||||||||
Ending balance
|
$
|
4,683
|
|
|
$
|
2,439
|
|
|
$
|
110
|
|
|
$
|
255
|
|
|
$
|
1,230
|
|
|
$
|
431
|
|
|
$
|
211
|
|
|
$
|
1,400
|
|
|
$
|
408
|
|
|
$
|
281
|
|
|
$
|
11,448
|
|
As % of ALLL
|
41
|
%
|
|
21
|
%
|
|
1
|
%
|
|
2
|
%
|
|
11
|
%
|
|
4
|
%
|
|
2
|
%
|
|
12
|
%
|
|
4
|
%
|
|
2
|
%
|
|
100
|
%
|
|||||||||||
ALLL:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Individually evaluated
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Collectively evaluated
|
4,683
|
|
|
2,439
|
|
|
110
|
|
|
255
|
|
|
1,230
|
|
|
431
|
|
|
211
|
|
|
1,400
|
|
|
408
|
|
|
281
|
|
|
11,448
|
|
|||||||||||
Ending balance
|
$
|
4,683
|
|
|
$
|
2,439
|
|
|
$
|
110
|
|
|
$
|
255
|
|
|
$
|
1,230
|
|
|
$
|
431
|
|
|
$
|
211
|
|
|
$
|
1,400
|
|
|
$
|
408
|
|
|
$
|
281
|
|
|
$
|
11,448
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Individually evaluated
|
$
|
227
|
|
|
$
|
321
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
548
|
|
Collectively evaluated
|
567,873
|
|
|
283,210
|
|
|
11,113
|
|
|
31,374
|
|
|
171,087
|
|
|
66,478
|
|
|
30,926
|
|
|
220,368
|
|
|
78,379
|
|
|
23,809
|
|
|
1,484,617
|
|
|||||||||||
Total loans
|
$
|
568,100
|
|
|
$
|
283,531
|
|
|
$
|
11,113
|
|
|
$
|
31,374
|
|
|
$
|
171,087
|
|
|
$
|
66,478
|
|
|
$
|
30,926
|
|
|
$
|
220,368
|
|
|
$
|
78,379
|
|
|
$
|
23,809
|
|
|
$
|
1,485,165
|
|
Less ALLL
|
4,683
|
|
|
2,439
|
|
|
110
|
|
|
255
|
|
|
1,230
|
|
|
431
|
|
|
211
|
|
|
1,400
|
|
|
408
|
|
|
281
|
|
|
11,448
|
|
|||||||||||
Net loans
|
$
|
563,417
|
|
|
$
|
281,092
|
|
|
$
|
11,003
|
|
|
$
|
31,119
|
|
|
$
|
169,857
|
|
|
$
|
66,047
|
|
|
$
|
30,715
|
|
|
$
|
218,968
|
|
|
$
|
77,971
|
|
|
$
|
23,528
|
|
|
$
|
1,473,717
|
|
|
|
Acquired – Year Ended December 31, 2018
|
||||||||||||||||||||||||||||||||||||||||||
(in thousands)
|
Commercial
& industrial
|
|
Owner-
occupied
CRE
|
|
AG
production
|
|
AG real
estate
|
|
CRE
investment
|
|
Construction & land
development
|
|
Residential
construction
|
|
Residential
first mortgage
|
|
Residential
junior
mortgage
|
|
Retail
& other
|
|
Total
|
||||||||||||||||||||||
ALLL:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Beginning balance
|
$
|
742
|
|
|
$
|
492
|
|
|
$
|
17
|
|
|
$
|
61
|
|
|
$
|
234
|
|
|
$
|
98
|
|
|
$
|
51
|
|
|
$
|
312
|
|
|
$
|
79
|
|
|
$
|
25
|
|
|
$
|
2,111
|
|
Provision
|
(155
|
)
|
|
(85
|
)
|
|
(6
|
)
|
|
(15
|
)
|
|
6
|
|
|
(19
|
)
|
|
(51
|
)
|
|
(70
|
)
|
|
(20
|
)
|
|
1
|
|
|
(414
|
)
|
|||||||||||
Charge-offs
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(13
|
)
|
|||||||||||
Recoveries
|
1
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
5
|
|
|
—
|
|
|
21
|
|
|||||||||||
Net charge-offs
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
5
|
|
|
(3
|
)
|
|
8
|
|
|||||||||||
Ending balance
|
$
|
588
|
|
|
$
|
408
|
|
|
$
|
11
|
|
|
$
|
46
|
|
|
$
|
240
|
|
|
$
|
79
|
|
|
$
|
—
|
|
|
$
|
246
|
|
|
$
|
64
|
|
|
$
|
23
|
|
|
$
|
1,705
|
|
As % of ALLL
|
34
|
%
|
|
24
|
%
|
|
1
|
%
|
|
3
|
%
|
|
14
|
%
|
|
5
|
%
|
|
—
|
%
|
|
14
|
%
|
|
4
|
%
|
|
1
|
%
|
|
100
|
%
|
|||||||||||
ALLL:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Individually evaluated
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Collectively evaluated
|
588
|
|
|
408
|
|
|
11
|
|
|
46
|
|
|
240
|
|
|
79
|
|
|
—
|
|
|
246
|
|
|
64
|
|
|
23
|
|
|
1,705
|
|
|||||||||||
Ending balance
|
$
|
588
|
|
|
$
|
408
|
|
|
$
|
11
|
|
|
$
|
46
|
|
|
$
|
240
|
|
|
$
|
79
|
|
|
$
|
—
|
|
|
$
|
246
|
|
|
$
|
64
|
|
|
$
|
23
|
|
|
$
|
1,705
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Individually evaluated
|
$
|
2,700
|
|
|
$
|
1,185
|
|
|
$
|
—
|
|
|
$
|
222
|
|
|
$
|
1,686
|
|
|
$
|
603
|
|
|
$
|
—
|
|
|
$
|
2,750
|
|
|
$
|
233
|
|
|
$
|
12
|
|
|
$
|
9,391
|
|
Collectively evaluated
|
114,120
|
|
|
156,637
|
|
|
24,512
|
|
|
21,848
|
|
|
170,879
|
|
|
13,518
|
|
|
—
|
|
|
134,723
|
|
|
32,716
|
|
|
2,672
|
|
|
671,625
|
|
|||||||||||
Total loans
|
$
|
116,820
|
|
|
$
|
157,822
|
|
|
$
|
24,512
|
|
|
$
|
22,070
|
|
|
$
|
172,565
|
|
|
$
|
14,121
|
|
|
$
|
—
|
|
|
$
|
137,473
|
|
|
$
|
32,949
|
|
|
$
|
2,684
|
|
|
$
|
681,016
|
|
Less ALLL
|
588
|
|
|
408
|
|
|
11
|
|
|
46
|
|
|
240
|
|
|
79
|
|
|
—
|
|
|
246
|
|
|
64
|
|
|
23
|
|
|
1,705
|
|
|||||||||||
Net loans
|
$
|
116,232
|
|
|
$
|
157,414
|
|
|
$
|
24,501
|
|
|
$
|
22,024
|
|
|
$
|
172,325
|
|
|
$
|
14,042
|
|
|
$
|
—
|
|
|
$
|
137,227
|
|
|
$
|
32,885
|
|
|
$
|
2,661
|
|
|
$
|
679,311
|
|
|
Total Nonaccrual Loans
|
||||||||||||
(in thousands)
|
December 31, 2019
|
|
% to Total
|
|
December 31, 2018
|
|
% to Total
|
||||||
Commercial & industrial
|
$
|
6,249
|
|
|
44
|
%
|
|
$
|
2,816
|
|
|
52
|
%
|
Owner-occupied CRE
|
3,311
|
|
|
23
|
|
|
673
|
|
|
12
|
|
||
AG production
|
1,062
|
|
|
8
|
|
|
—
|
|
|
—
|
|
||
AG real estate
|
836
|
|
|
6
|
|
|
164
|
|
|
3
|
|
||
CRE investment
|
1,073
|
|
|
8
|
|
|
210
|
|
|
4
|
|
||
Construction & land development
|
20
|
|
|
—
|
|
|
80
|
|
|
1
|
|
||
Residential construction
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||
Residential first mortgage
|
1,090
|
|
|
8
|
|
|
1,265
|
|
|
23
|
|
||
Residential junior mortgage
|
480
|
|
|
3
|
|
|
262
|
|
|
5
|
|
||
Retail & other
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Nonaccrual loans
|
$
|
14,122
|
|
|
100
|
%
|
|
$
|
5,471
|
|
|
100
|
%
|
Percent of total loans
|
0.5
|
%
|
|
|
|
0.2
|
%
|
|
|
|
|
Originated and Acquired Nonaccrual Loans
|
||||||||||||||||||||||||||
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||||
(in thousands)
|
Originated
Amount
|
|
% of
Total
|
|
Acquired
Amount
|
|
% of
Total
|
|
Originated
Amount
|
|
% of
Total
|
|
Acquired
Amount
|
|
% of
Total
|
||||||||||||
Commercial & industrial
|
$
|
2,283
|
|
|
36
|
%
|
|
$
|
3,966
|
|
|
51
|
%
|
|
$
|
352
|
|
|
25
|
%
|
|
$
|
2,464
|
|
|
61
|
%
|
Owner-occupied CRE
|
1,846
|
|
|
29
|
|
|
1,465
|
|
|
19
|
|
|
362
|
|
|
26
|
|
|
311
|
|
|
8
|
|
||||
AG production
|
1,009
|
|
|
16
|
|
|
53
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
AG real estate
|
625
|
|
|
10
|
|
|
211
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
164
|
|
|
4
|
|
||||
CRE investment
|
—
|
|
|
—
|
|
|
1,073
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
210
|
|
|
5
|
|
||||
Construction & land development
|
—
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
80
|
|
|
2
|
|
||||
Residential construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Residential first mortgage
|
434
|
|
|
7
|
|
|
656
|
|
|
8
|
|
|
629
|
|
|
45
|
|
|
636
|
|
|
15
|
|
||||
Residential junior mortgage
|
126
|
|
|
2
|
|
|
354
|
|
|
4
|
|
|
65
|
|
|
4
|
|
|
197
|
|
|
5
|
|
||||
Retail & other
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Nonaccrual loans
|
$
|
6,324
|
|
|
100
|
%
|
|
$
|
7,798
|
|
|
100
|
%
|
|
$
|
1,409
|
|
|
100
|
%
|
|
$
|
4,062
|
|
|
100
|
%
|
Percent of nonaccrual loans
|
45
|
%
|
|
|
|
55
|
%
|
|
|
|
26
|
%
|
|
|
|
74
|
%
|
|
|
|
December 31, 2019
|
||||||||||||||
(in thousands)
|
30-89 Days Past
Due (accruing)
|
|
90 Days & Over
or nonaccrual
|
|
Current
|
|
Total
|
||||||||
Commercial & industrial
|
$
|
1,729
|
|
|
$
|
6,249
|
|
|
$
|
798,211
|
|
|
$
|
806,189
|
|
Owner-occupied CRE
|
112
|
|
|
3,311
|
|
|
492,949
|
|
|
496,372
|
|
||||
AG production
|
—
|
|
|
1,062
|
|
|
34,920
|
|
|
35,982
|
|
||||
AG real estate
|
—
|
|
|
836
|
|
|
58,632
|
|
|
59,468
|
|
||||
CRE investment
|
—
|
|
|
1,073
|
|
|
442,145
|
|
|
443,218
|
|
||||
Construction & land development
|
2,063
|
|
|
20
|
|
|
90,887
|
|
|
92,970
|
|
||||
Residential construction
|
302
|
|
|
—
|
|
|
54,101
|
|
|
54,403
|
|
||||
Residential first mortgage
|
2,736
|
|
|
1,090
|
|
|
428,341
|
|
|
432,167
|
|
||||
Residential junior mortgage
|
217
|
|
|
480
|
|
|
122,074
|
|
|
122,771
|
|
||||
Retail & other
|
110
|
|
|
1
|
|
|
30,100
|
|
|
30,211
|
|
||||
Total loans
|
$
|
7,269
|
|
|
$
|
14,122
|
|
|
$
|
2,552,360
|
|
|
$
|
2,573,751
|
|
Percent of total loans
|
0.3
|
%
|
|
0.5
|
%
|
|
99.2
|
%
|
|
100.0
|
%
|
|
|
December 31, 2018
|
||||||||||||||
(in thousands)
|
30-89 Days Past
Due (accruing)
|
|
90 Days & Over
or nonaccrual
|
|
Current
|
|
Total
|
||||||||
Commercial & industrial
|
$
|
—
|
|
|
$
|
2,816
|
|
|
$
|
682,104
|
|
|
$
|
684,920
|
|
Owner-occupied CRE
|
557
|
|
|
673
|
|
|
440,123
|
|
|
441,353
|
|
||||
AG production
|
19
|
|
|
—
|
|
|
35,606
|
|
|
35,625
|
|
||||
AG real estate
|
35
|
|
|
164
|
|
|
53,245
|
|
|
53,444
|
|
||||
CRE investment
|
180
|
|
|
210
|
|
|
343,262
|
|
|
343,652
|
|
||||
Construction & land development
|
—
|
|
|
80
|
|
|
80,519
|
|
|
80,599
|
|
||||
Residential construction
|
—
|
|
|
1
|
|
|
30,925
|
|
|
30,926
|
|
||||
Residential first mortgage
|
758
|
|
|
1,265
|
|
|
355,818
|
|
|
357,841
|
|
||||
Residential junior mortgage
|
12
|
|
|
262
|
|
|
111,054
|
|
|
111,328
|
|
||||
Retail & other
|
10
|
|
|
—
|
|
|
26,483
|
|
|
26,493
|
|
||||
Total loans
|
$
|
1,571
|
|
|
$
|
5,471
|
|
|
$
|
2,159,139
|
|
|
$
|
2,166,181
|
|
Percent of total loans
|
0.1
|
%
|
|
0.2
|
%
|
|
99.7
|
%
|
|
100.0
|
%
|
|
|
December 31, 2019
|
||||||||||||||||||||||
(in thousands)
|
Grades 1-4
|
|
Grade 5
|
|
Grade 6
|
|
Grade 7
|
|
Grades 8-9
|
|
Total
|
||||||||||||
Commercial & industrial
|
$
|
765,073
|
|
|
$
|
20,199
|
|
|
$
|
7,663
|
|
|
$
|
13,254
|
|
|
$
|
—
|
|
|
$
|
806,189
|
|
Owner-occupied CRE
|
464,661
|
|
|
20,855
|
|
|
953
|
|
|
9,903
|
|
|
—
|
|
|
496,372
|
|
||||||
AG production
|
27,521
|
|
|
3,174
|
|
|
1,229
|
|
|
4,058
|
|
|
—
|
|
|
35,982
|
|
||||||
AG real estate
|
49,561
|
|
|
3,611
|
|
|
2,046
|
|
|
4,250
|
|
|
—
|
|
|
59,468
|
|
||||||
CRE investment
|
430,794
|
|
|
8,085
|
|
|
2,578
|
|
|
1,761
|
|
|
—
|
|
|
443,218
|
|
||||||
Construction & land development
|
90,523
|
|
|
2,213
|
|
|
15
|
|
|
219
|
|
|
—
|
|
|
92,970
|
|
||||||
Residential construction
|
53,286
|
|
|
1,117
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54,403
|
|
||||||
Residential first mortgage
|
424,044
|
|
|
4,677
|
|
|
668
|
|
|
2,778
|
|
|
—
|
|
|
432,167
|
|
||||||
Residential junior mortgage
|
122,249
|
|
|
35
|
|
|
—
|
|
|
487
|
|
|
—
|
|
|
122,771
|
|
||||||
Retail & other
|
30,210
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
30,211
|
|
||||||
Total loans
|
$
|
2,457,922
|
|
|
$
|
63,966
|
|
|
$
|
15,152
|
|
|
$
|
36,711
|
|
|
$
|
—
|
|
|
$
|
2,573,751
|
|
Percent of total loans
|
95.5
|
%
|
|
2.5
|
%
|
|
0.6
|
%
|
|
1.4
|
%
|
|
—
|
%
|
|
100.0
|
%
|
|
December 31, 2018
|
||||||||||||||||||||||
(in thousands)
|
Grades 1-4
|
|
Grade 5
|
|
Grade 6
|
|
Grade 7
|
|
Grades 8-9
|
|
Total
|
||||||||||||
Commercial & industrial
|
$
|
649,475
|
|
|
$
|
16,145
|
|
|
$
|
6,178
|
|
|
$
|
13,122
|
|
|
$
|
—
|
|
|
$
|
684,920
|
|
Owner-occupied CRE
|
405,198
|
|
|
22,776
|
|
|
6,569
|
|
|
6,810
|
|
|
—
|
|
|
441,353
|
|
||||||
AG production
|
29,363
|
|
|
3,302
|
|
|
2,351
|
|
|
609
|
|
|
—
|
|
|
35,625
|
|
||||||
AG real estate
|
46,248
|
|
|
3,246
|
|
|
2,983
|
|
|
967
|
|
|
—
|
|
|
53,444
|
|
||||||
CRE investment
|
334,080
|
|
|
6,792
|
|
|
—
|
|
|
2,780
|
|
|
—
|
|
|
343,652
|
|
||||||
Construction & land development
|
75,365
|
|
|
5,138
|
|
|
16
|
|
|
80
|
|
|
—
|
|
|
80,599
|
|
||||||
Residential construction
|
30,926
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30,926
|
|
||||||
Residential first mortgage
|
353,239
|
|
|
1,406
|
|
|
510
|
|
|
2,686
|
|
|
—
|
|
|
357,841
|
|
||||||
Residential junior mortgage
|
111,037
|
|
|
17
|
|
|
—
|
|
|
274
|
|
|
—
|
|
|
111,328
|
|
||||||
Retail & other
|
26,493
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26,493
|
|
||||||
Total loans
|
$
|
2,061,424
|
|
|
$
|
58,822
|
|
|
$
|
18,607
|
|
|
$
|
27,328
|
|
|
$
|
—
|
|
|
$
|
2,166,181
|
|
Percent of total loans
|
95.1
|
%
|
|
2.7
|
%
|
|
0.9
|
%
|
|
1.3
|
%
|
|
—
|
%
|
|
100.0
|
%
|
|
|
December 31, 2019
|
||||||||||||||||||
(in thousands)
|
Recorded
Investment
|
|
Unpaid Principal
Balance
|
|
Related
Allowance
|
|
Average Recorded
Investment
|
|
Interest Income
Recognized
|
||||||||||
Commercial & industrial
|
$
|
5,932
|
|
|
$
|
7,950
|
|
|
$
|
625
|
|
|
$
|
5,405
|
|
|
$
|
1,170
|
|
Owner-occupied CRE
|
3,430
|
|
|
4,016
|
|
|
—
|
|
|
3,677
|
|
|
256
|
|
|||||
AG production
|
1,061
|
|
|
1,090
|
|
|
116
|
|
|
1,221
|
|
|
28
|
|
|||||
AG real estate
|
1,073
|
|
|
1,082
|
|
|
—
|
|
|
1,090
|
|
|
9
|
|
|||||
CRE investment
|
2,426
|
|
|
2,790
|
|
|
—
|
|
|
2,497
|
|
|
364
|
|
|||||
Construction & land development
|
382
|
|
|
382
|
|
|
—
|
|
|
460
|
|
|
—
|
|
|||||
Residential construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential first mortgage
|
2,357
|
|
|
2,629
|
|
|
—
|
|
|
2,412
|
|
|
178
|
|
|||||
Residential junior mortgage
|
218
|
|
|
349
|
|
|
—
|
|
|
224
|
|
|
58
|
|
|||||
Retail & other
|
12
|
|
|
12
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|||||
Total
|
$
|
16,891
|
|
|
$
|
20,300
|
|
|
$
|
741
|
|
|
$
|
16,998
|
|
|
$
|
2,063
|
|
Originated impaired loans
|
$
|
5,708
|
|
|
$
|
5,938
|
|
|
$
|
741
|
|
|
$
|
5,978
|
|
|
$
|
230
|
|
Acquired impaired loans
|
11,183
|
|
|
14,362
|
|
|
—
|
|
|
11,020
|
|
|
1,833
|
|
|||||
Total
|
$
|
16,891
|
|
|
$
|
20,300
|
|
|
$
|
741
|
|
|
$
|
16,998
|
|
|
$
|
2,063
|
|
|
December 31, 2018
|
||||||||||||||||||
(in thousands)
|
Recorded
Investment
|
|
Unpaid Principal
Balance
|
|
Related
Allowance
|
|
Average
Recorded
Investment
|
|
Interest Income
Recognized
|
||||||||||
Commercial & industrial
|
$
|
2,927
|
|
|
$
|
6,736
|
|
|
$
|
—
|
|
|
$
|
4,041
|
|
|
$
|
660
|
|
Owner-occupied CRE
|
1,506
|
|
|
1,833
|
|
|
—
|
|
|
1,659
|
|
|
137
|
|
|||||
AG production
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
AG real estate
|
222
|
|
|
281
|
|
|
—
|
|
|
238
|
|
|
26
|
|
|||||
CRE investment
|
1,686
|
|
|
2,484
|
|
|
—
|
|
|
1,606
|
|
|
163
|
|
|||||
Construction & land development
|
603
|
|
|
1,506
|
|
|
—
|
|
|
603
|
|
|
21
|
|
|||||
Residential construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential first mortgage
|
2,750
|
|
|
2,907
|
|
|
—
|
|
|
2,478
|
|
|
176
|
|
|||||
Residential junior mortgage
|
233
|
|
|
262
|
|
|
—
|
|
|
62
|
|
|
15
|
|
|||||
Retail & other
|
12
|
|
|
12
|
|
|
—
|
|
|
12
|
|
|
1
|
|
|||||
Total
|
$
|
9,939
|
|
|
$
|
16,021
|
|
|
$
|
—
|
|
|
$
|
10,699
|
|
|
$
|
1,199
|
|
Originated impaired loans
|
$
|
548
|
|
|
$
|
548
|
|
|
$
|
—
|
|
|
$
|
899
|
|
|
$
|
154
|
|
Acquired impaired loans
|
9,391
|
|
|
15,473
|
|
|
—
|
|
|
9,800
|
|
|
1,045
|
|
|||||
Total
|
$
|
9,939
|
|
|
$
|
16,021
|
|
|
$
|
—
|
|
|
$
|
10,699
|
|
|
$
|
1,199
|
|
|
(in thousands)
|
December 31, 2019
|
|
December 31, 2018
|
||||
Land
|
$
|
7,418
|
|
|
$
|
6,220
|
|
Land improvements
|
3,865
|
|
|
3,842
|
|
||
Building and improvements
|
50,818
|
|
|
42,238
|
|
||
Leasehold improvements
|
4,580
|
|
|
4,092
|
|
||
Furniture and equipment
|
20,262
|
|
|
18,590
|
|
||
|
86,943
|
|
|
74,982
|
|
||
Less accumulated depreciation and amortization
|
30,474
|
|
|
26,809
|
|
||
Premises and equipment, net
|
$
|
56,469
|
|
|
$
|
48,173
|
|
|
Year Ended
|
||
($ in thousands)
|
December 31, 2019
|
||
Net lease cost:
|
|
||
Operating lease cost
|
$
|
970
|
|
Variable lease cost
|
233
|
|
|
Net lease cost
|
$
|
1,203
|
|
Selected other operating lease information:
|
|
||
Weighted average remaining lease term (years)
|
4.3
|
|
|
Weighted average discount rate
|
2.5
|
%
|
|
Years Ending December 31,
|
(in thousands)
|
||
2020
|
$
|
1,088
|
|
2021
|
962
|
|
|
2022
|
851
|
|
|
2023
|
607
|
|
|
2024
|
499
|
|
|
Thereafter
|
16
|
|
|
Total future minimum lease payments
|
4,023
|
|
|
Less: amount representing interest
|
(100
|
)
|
|
Present value of net future minimum lease payments
|
$
|
3,923
|
|
(in thousands)
|
December 31, 2019
|
|
December 31, 2018
|
||||
Goodwill
|
$
|
151,198
|
|
|
$
|
107,366
|
|
Core deposit intangibles
|
10,897
|
|
|
12,562
|
|
||
Customer list intangibles
|
3,872
|
|
|
4,379
|
|
||
Other intangibles
|
14,769
|
|
|
16,941
|
|
||
Goodwill and other intangibles, net
|
$
|
165,967
|
|
|
$
|
124,307
|
|
(in thousands)
|
December 31, 2019
|
|
December 31, 2018
|
||||
Goodwill:
|
|
|
|
|
|
||
Goodwill at beginning of year
|
$
|
107,366
|
|
|
$
|
107,366
|
|
Acquisition
|
44,594
|
|
|
—
|
|
||
Impairment
|
(762
|
)
|
|
—
|
|
||
Goodwill at end of year
|
$
|
151,198
|
|
|
$
|
107,366
|
|
|
(in thousands)
|
December 31, 2019
|
|
December 31, 2018
|
||||
Core deposit intangibles:
|
|
|
|
|
|
||
Gross carrying amount
|
$
|
30,715
|
|
|
$
|
29,015
|
|
Accumulated amortization
|
(19,818
|
)
|
|
(16,453
|
)
|
||
Net book value
|
$
|
10,897
|
|
|
$
|
12,562
|
|
Additions during the period
|
$
|
1,700
|
|
|
$
|
—
|
|
Amortization during the period
|
$
|
3,365
|
|
|
$
|
3,915
|
|
Customer list intangibles:
|
|
|
|
|
|
||
Gross carrying amount
|
$
|
5,523
|
|
|
5,523
|
|
|
Accumulated amortization
|
(1,651
|
)
|
|
(1,144
|
)
|
||
Net book value
|
$
|
3,872
|
|
|
$
|
4,379
|
|
Additions during the period
|
$
|
—
|
|
|
$
|
290
|
|
Amortization during the period
|
$
|
507
|
|
|
$
|
474
|
|
(in thousands)
|
December 31, 2019
|
|
December 31, 2018
|
||||
MSR asset:
|
|
|
|
|
|
||
MSR asset at beginning of year
|
$
|
3,749
|
|
|
$
|
3,187
|
|
Capitalized MSR
|
2,876
|
|
|
1,203
|
|
||
MSR asset acquired
|
160
|
|
|
—
|
|
||
Amortization during the period
|
(866
|
)
|
|
(641
|
)
|
||
MSR asset at end of year
|
$
|
5,919
|
|
|
$
|
3,749
|
|
Fair value of MSR asset at end of period
|
$
|
8,420
|
|
|
$
|
6,347
|
|
Residential mortgage loans serviced for others
|
$
|
847,756
|
|
|
$
|
603,446
|
|
Net book value of MSR asset to loans serviced for others
|
0.70
|
%
|
|
0.62
|
%
|
(in thousands)
|
Core deposit
intangibles
|
|
Customer list
intangibles
|
|
MSR asset
|
||||||
Years Ending December 31,
|
|
|
|
|
|
|
|
|
|||
2020
|
$
|
2,993
|
|
|
$
|
507
|
|
|
$
|
1,048
|
|
2021
|
2,453
|
|
|
507
|
|
|
865
|
|
|||
2022
|
1,987
|
|
|
507
|
|
|
865
|
|
|||
2023
|
1,490
|
|
|
483
|
|
|
835
|
|
|||
2024
|
1,010
|
|
|
449
|
|
|
503
|
|
|||
Thereafter
|
964
|
|
|
1,419
|
|
|
1,803
|
|
|||
Total
|
$
|
10,897
|
|
|
$
|
3,872
|
|
|
$
|
5,919
|
|
|
Years Ending December 31,
|
(in thousands)
|
||
2020
|
$
|
317,693
|
|
2021
|
114,728
|
|
|
2022
|
50,949
|
|
|
2023
|
45,040
|
|
|
2024
|
19,773
|
|
|
Thereafter
|
2,374
|
|
|
Total time deposits
|
$
|
550,557
|
|
(in thousands)
|
December 31, 2019
|
|
December 31, 2018
|
||||
FHLB advances
|
$
|
25,061
|
|
|
$
|
35,252
|
|
Junior subordinated debentures
|
30,575
|
|
|
30,096
|
|
||
Subordinated notes
|
11,993
|
|
|
11,957
|
|
||
Total long-term borrowings
|
$
|
67,629
|
|
|
$
|
77,305
|
|
|
|
|
|
Junior Subordinated Debentures
|
||||||||||||||
(in thousands)
|
Maturity
Date
|
|
Par
|
|
12/31/2019
Unamortized
Discount
|
|
12/31/2019
Carrying
Value
|
|
12/31/2018
Carrying
Value
|
||||||||
2004 Nicolet Bankshares Statutory Trust(1)
|
7/15/2034
|
|
$
|
6,186
|
|
|
$
|
—
|
|
|
$
|
6,186
|
|
|
$
|
6,186
|
|
2005 Mid-Wisconsin Financial Services, Inc.(2)
|
12/15/2035
|
|
10,310
|
|
|
(3,172
|
)
|
|
7,138
|
|
|
6,939
|
|
||||
2006 Baylake Corp.(3)
|
9/30/2036
|
|
16,598
|
|
|
(3,883
|
)
|
|
12,715
|
|
|
12,478
|
|
||||
2004 First Menasha Bancshares, Inc.(4)
|
3/17/2034
|
|
5,155
|
|
|
(619
|
)
|
|
4,536
|
|
|
4,493
|
|
||||
Total
|
|
|
$
|
38,249
|
|
|
$
|
(7,674
|
)
|
|
$
|
30,575
|
|
|
$
|
30,096
|
|
(1)
|
The interest rate is 8.00% fixed.
|
(2)
|
The debentures, assumed in April 2013 as the result of an acquisition, have a floating rate of the three-month LIBOR plus 1.43%, adjusted quarterly. The interest rates were 3.32% and 4.22% as of December 31, 2019 and 2018, respectively.
|
(3)
|
The debentures, assumed in April 2016 as a result of an acquisition, have a floating rate of the three-month LIBOR plus 1.35%, adjusted quarterly. The interest rates were 3.31% and 4.15% as of December 31, 2019 and 2018, respectively.
|
(4)
|
The debentures, assumed in April 2017 as the result of an acquisition, have a floating rate of the three-month LIBOR plus 2.79%, adjusted quarterly. The interest rate was 4.69% and 5.58% as of December 31, 2019 and 2018, respectively.
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Dividend yield
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|||
Expected volatility
|
25
|
%
|
|
25
|
%
|
|
25
|
%
|
|||
Risk-free interest rate
|
1.75
|
%
|
|
2.61
|
%
|
|
2.14
|
%
|
|||
Expected average life
|
7 years
|
|
|
7 years
|
|
|
7 years
|
|
|||
Weighted average per share fair value of options
|
$
|
21.30
|
|
|
$
|
17.36
|
|
|
$
|
15.80
|
|
Stock Options
|
Option Shares
Outstanding
|
|
Weighted Average
Exercise Price
|
|
Weighted Average Remaining Life (Years)
|
|
Aggregate Intrinsic Value (in thousands)
|
|||||
Outstanding – December 31, 2016
|
922,026
|
|
|
$
|
24.39
|
|
|
|
|
|
||
Granted
|
949,500
|
|
|
49.93
|
|
|
|
|
|
|||
Exercise of stock options *
|
(209,371
|
)
|
|
18.15
|
|
|
|
|
|
|||
Forfeited
|
(18,900
|
)
|
|
35.36
|
|
|
|
|
|
|||
Outstanding – December 31, 2017
|
1,643,255
|
|
|
$
|
39.82
|
|
|
8.1
|
|
$
|
24,525
|
|
Granted
|
15,500
|
|
|
52.76
|
|
|
|
|
|
|||
Exercise of stock options *
|
(70,556
|
)
|
|
21.52
|
|
|
|
|
|
|||
Forfeited
|
(6,500
|
)
|
|
39.43
|
|
|
|
|
|
|||
Outstanding – December 31, 2018
|
1,581,699
|
|
|
$
|
40.77
|
|
|
7.4
|
|
$
|
13,825
|
|
Granted
|
203,000
|
|
|
69.69
|
|
|
|
|
|
|
||
Exercise of stock options *
|
(337,428
|
)
|
|
24.15
|
|
|
|
|
|
|
||
Forfeited
|
(3,538
|
)
|
|
27.43
|
|
|
|
|
|
|
||
Outstanding – December 31, 2019
|
1,443,733
|
|
|
$
|
48.75
|
|
|
7.4
|
|
$
|
36,428
|
|
Exercisable – December 31, 2019
|
561,633
|
|
|
$
|
42.91
|
|
|
6.7
|
|
$
|
17,384
|
|
|
|
Number of Shares
|
|
Weighted Average
Exercise Price
|
|
Weighted Average
Remaining Life (Years)
|
||||||||||||
|
Outstanding
|
|
Exercisable
|
|
Outstanding
|
|
Exercisable
|
|
Outstanding
|
|
Exercisable
|
||||||
$13.73 – $30.00
|
130,436
|
|
|
94,936
|
|
|
$
|
22.37
|
|
|
$
|
21.85
|
|
|
4.2
|
|
4.1
|
$30.01 – $40.00
|
155,747
|
|
|
89,747
|
|
|
35.92
|
|
|
35.51
|
|
|
6.4
|
|
6.3
|
||
$40.01 – $50.00
|
804,050
|
|
|
319,850
|
|
|
48.86
|
|
|
48.86
|
|
|
7.4
|
|
7.4
|
||
$50.01 – $60.00
|
155,500
|
|
|
57,100
|
|
|
56.09
|
|
|
56.23
|
|
|
7.9
|
|
7.9
|
||
$60.01 – $70.50
|
198,000
|
|
|
—
|
|
|
70.01
|
|
|
—
|
|
|
9.9
|
|
0.0
|
||
|
1,443,733
|
|
|
561,633
|
|
|
$
|
48.75
|
|
|
$
|
42.91
|
|
|
7.4
|
|
6.7
|
Restricted Stock
|
Restricted Shares
Outstanding
|
|
Weighted Average Grant
Date Fair Value
|
|||
Outstanding – December 31, 2016
|
42,949
|
|
|
$
|
26.80
|
|
Granted
|
9,240
|
|
|
57.75
|
|
|
Vested *
|
(20,514
|
)
|
|
29.87
|
|
|
Forfeited
|
(755
|
)
|
|
16.50
|
|
|
Outstanding – December 31, 2017
|
30,920
|
|
|
$
|
34.26
|
|
Granted
|
18,256
|
|
|
52.55
|
|
|
Vested *
|
(19,661
|
)
|
|
43.58
|
|
|
Forfeited
|
(3
|
)
|
|
16.50
|
|
|
Outstanding – December 31, 2018
|
29,512
|
|
|
$
|
39.37
|
|
Granted
|
12,498
|
|
|
67.59
|
|
|
Vested *
|
(19,081
|
)
|
|
51.77
|
|
|
Forfeited
|
(408
|
)
|
|
16.50
|
|
|
Outstanding – December 31, 2019
|
22,521
|
|
|
$
|
44.94
|
|
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Current
|
$
|
15,353
|
|
|
$
|
14,967
|
|
|
$
|
10,952
|
|
Deferred
|
1,105
|
|
|
(1,521
|
)
|
|
4,430
|
|
|||
Adjustment to the net deferred tax asset for the Tax Cuts and Jobs Act
|
—
|
|
|
—
|
|
|
885
|
|
|||
Income tax expense
|
$
|
16,458
|
|
|
$
|
13,446
|
|
|
$
|
16,267
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Tax on pretax income, less noncontrolling interest, at statutory rates
|
$
|
14,931
|
|
|
$
|
11,441
|
|
|
$
|
17,296
|
|
State income taxes, net of federal effect
|
3,672
|
|
|
3,308
|
|
|
2,242
|
|
|||
Tax-exempt interest income
|
(609
|
)
|
|
(574
|
)
|
|
(1,073
|
)
|
|||
Non-deductible interest disallowance
|
29
|
|
|
30
|
|
|
28
|
|
|||
Increase in cash surrender value life insurance
|
(573
|
)
|
|
(508
|
)
|
|
(807
|
)
|
|||
Non-deductible business entertainment
|
189
|
|
|
156
|
|
|
168
|
|
|||
Stock-based employee compensation
|
(2,347
|
)
|
|
(232
|
)
|
|
(62
|
)
|
|||
Non-deductible compensation
|
3,122
|
|
|
—
|
|
|
—
|
|
|||
Adjustment to the net deferred tax asset for the Tax Cuts and Jobs Act
|
—
|
|
|
—
|
|
|
885
|
|
|||
Deduction attributable to share-based payments
|
—
|
|
|
—
|
|
|
(1,854
|
)
|
|||
Sale of UFS
|
(2,176
|
)
|
|
—
|
|
|
—
|
|
|||
Other, net
|
220
|
|
|
(175
|
)
|
|
(556
|
)
|
|||
Income tax expense
|
$
|
16,458
|
|
|
$
|
13,446
|
|
|
$
|
16,267
|
|
|
(in thousands)
|
December 31, 2019
|
|
December 31, 2018
|
||||
Deferred tax assets:
|
|
|
|
|
|
||
ALLL
|
$
|
4,985
|
|
|
$
|
5,240
|
|
Net operating loss carryforwards
|
1,808
|
|
|
2,202
|
|
||
Credit carryforwards
|
43
|
|
|
43
|
|
||
Compensation
|
3,477
|
|
|
2,408
|
|
||
Other
|
2,830
|
|
|
2,549
|
|
||
Other real estate
|
201
|
|
|
103
|
|
||
Unrealized loss on securities AFS
|
—
|
|
|
1,740
|
|
||
Total deferred tax assets
|
13,344
|
|
|
14,285
|
|
||
Deferred tax liabilities:
|
|
|
|
|
|
||
Premises and equipment
|
(1,390
|
)
|
|
(821
|
)
|
||
Prepaid expenses
|
(778
|
)
|
|
(693
|
)
|
||
Investment securities
|
(755
|
)
|
|
(1,723
|
)
|
||
Core deposit and other intangibles
|
(2,836
|
)
|
|
(3,563
|
)
|
||
Purchase accounting adjustments to liabilities
|
(2,375
|
)
|
|
(2,011
|
)
|
||
Other
|
(1,391
|
)
|
|
(1,021
|
)
|
||
Unrealized gain on securities AFS
|
(1,879
|
)
|
|
—
|
|
||
Total deferred tax liabilities
|
(11,404
|
)
|
|
(9,832
|
)
|
||
Net deferred tax assets
|
$
|
1,940
|
|
|
$
|
4,453
|
|
(in thousands)
|
December 31, 2019
|
|
December 31, 2018
|
||||
Commitments to extend credit
|
$
|
773,555
|
|
|
$
|
721,098
|
|
Financial standby letters of credit
|
10,730
|
|
|
8,571
|
|
||
Performance standby letters of credit
|
8,469
|
|
|
7,094
|
|
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Gains (losses) on sales of securities AFS, net
|
$
|
(22
|
)
|
|
$
|
(212
|
)
|
|
$
|
1,220
|
|
Gains (losses) on equity securities, net
|
1,115
|
|
|
77
|
|
|
—
|
|
|||
Gains (losses) on sales of OREO, net
|
(88
|
)
|
|
1,032
|
|
|
258
|
|
|||
Write-downs of OREO
|
(300
|
)
|
|
(120
|
)
|
|
(127
|
)
|
|||
Write-down of other investment
|
(100
|
)
|
|
—
|
|
|
—
|
|
|||
Gains (losses) on sales of other investments, net
|
7,442
|
|
|
187
|
|
|
—
|
|
|||
Gains (losses) on sales or dispositions of other assets, net
|
(150
|
)
|
|
205
|
|
|
678
|
|
|||
Asset gains (losses), net
|
$
|
7,897
|
|
|
$
|
1,169
|
|
|
$
|
2,029
|
|
|
|
Actual
|
|
For Capital Adequacy
Purposes
|
|
To Be Well Capitalized
Under Prompt Corrective
Action Provisions (2)
|
|||||||||||||||
(in thousands)
|
Amount
|
|
Ratio (1)
|
|
Amount
|
|
Ratio (1)
|
|
Amount
|
|
Ratio (1)
|
|||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total risk-based capital
|
$
|
404,573
|
|
|
13.4
|
%
|
|
$
|
241,333
|
|
|
8.0
|
%
|
|
|
|
|
|
|
|
Tier 1 risk-based capital
|
378,608
|
|
|
12.6
|
|
|
181,000
|
|
|
6.0
|
|
|
|
|
|
|
|
|||
Common equity Tier 1 capital
|
348,454
|
|
|
11.6
|
|
|
135,750
|
|
|
4.5
|
|
|
|
|
|
|
|
|||
Leverage
|
378,608
|
|
|
11.9
|
|
|
127,036
|
|
|
4.0
|
|
|
|
|
|
|
|
|||
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total risk-based capital
|
$
|
323,432
|
|
|
10.8
|
%
|
|
$
|
240,551
|
|
|
8.0
|
%
|
|
$
|
300,688
|
|
|
10.0
|
%
|
Tier 1 risk-based capital
|
309,460
|
|
|
10.3
|
|
|
180,413
|
|
|
6.0
|
|
|
240,551
|
|
|
8.0
|
|
|||
Common equity Tier 1 capital
|
309,460
|
|
|
10.3
|
|
|
135,310
|
|
|
4.5
|
|
|
195,447
|
|
|
6.5
|
|
|||
Leverage
|
309,460
|
|
|
9.8
|
|
|
126,660
|
|
|
4.0
|
|
|
158,325
|
|
|
5.0
|
|
|||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total risk-based capital
|
$
|
326,235
|
|
|
12.9
|
%
|
|
$
|
202,836
|
|
|
8.0
|
%
|
|
|
|
|
|
|
|
Tier 1 risk-based capital
|
301,125
|
|
|
11.9
|
|
|
152,127
|
|
|
6.0
|
|
|
|
|
|
|
|
|||
Common equity Tier 1 capital
|
271,435
|
|
|
10.7
|
|
|
114,095
|
|
|
4.5
|
|
|
|
|
|
|
|
|||
Leverage
|
301,125
|
|
|
10.4
|
|
|
115,483
|
|
|
4.0
|
|
|
|
|
|
|
|
|||
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total risk-based capital
|
$
|
274,492
|
|
|
10.8
|
%
|
|
$
|
202,800
|
|
|
8.0
|
%
|
|
$
|
253,501
|
|
|
10.0
|
%
|
Tier 1 risk-based capital
|
261,339
|
|
|
10.3
|
|
|
152,100
|
|
|
6.0
|
|
|
202,800
|
|
|
8.0
|
|
|||
Common equity Tier 1 capital
|
261,339
|
|
|
10.3
|
|
|
114,075
|
|
|
4.5
|
|
|
164,775
|
|
|
6.5
|
|
|||
Leverage
|
261,339
|
|
|
9.1
|
|
|
115,280
|
|
|
4.0
|
|
|
144,100
|
|
|
5.0
|
|
(1)
|
The Total risk-based capital ratio is defined as Tier 1 capital plus tier 2 capital divided by total risk-weighted assets. The Tier 1 risk-based capital ratio is defined as Tier 1 capital divided by total risk-weighted assets. CET1 risk-based capital ratio is defined as Tier 1 capital, with deductions for goodwill and other intangible assets (other than mortgage servicing assets), net of associated deferred tax liabilities, and limitations on the inclusion of deferred tax assets, mortgage servicing assets and investments in other financial institutions, in each case as provided further in the rules, divided by total risk-weighted assets. The Leverage ratio is defined as Tier 1 capital divided by the most recent quarter’s average total assets as adjusted.
|
(2)
|
Prompt corrective action provisions are not applicable at the bank holding company level.
|
•
|
Level 1 - quoted market prices in active markets for identical assets or liabilities that a company has the ability to access at the measurement date
|
•
|
Level 2 - inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly
|
•
|
Level 3 – significant unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity
|
|
(in thousands)
|
|
|
|
Fair Value Measurements Using
|
||||||||||||
Measured at Fair Value on a Recurring Basis:
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. government agency securities
|
|
$
|
16,460
|
|
|
$
|
—
|
|
|
$
|
16,460
|
|
|
$
|
—
|
|
State, county and municipals
|
|
156,393
|
|
|
—
|
|
|
156,393
|
|
|
—
|
|
||||
Mortgage-backed securities
|
|
195,018
|
|
|
—
|
|
|
195,018
|
|
|
—
|
|
||||
Corporate debt securities
|
|
81,431
|
|
|
—
|
|
|
78,301
|
|
|
3,130
|
|
||||
Securities AFS
|
|
$
|
449,302
|
|
|
$
|
—
|
|
|
$
|
446,172
|
|
|
$
|
3,130
|
|
Other investments (equity securities)
|
|
$
|
3,375
|
|
|
$
|
3,375
|
|
|
$
|
—
|
|
|
$
|
—
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. government agency securities
|
|
$
|
21,649
|
|
|
$
|
—
|
|
|
$
|
21,649
|
|
|
$
|
—
|
|
State, county and municipals
|
|
160,526
|
|
|
—
|
|
|
160,460
|
|
|
66
|
|
||||
Mortgage-backed securities
|
|
131,644
|
|
|
—
|
|
|
131,644
|
|
|
—
|
|
||||
Corporate debt securities
|
|
86,325
|
|
|
—
|
|
|
77,901
|
|
|
8,424
|
|
||||
Securities AFS
|
|
$
|
400,144
|
|
|
$
|
—
|
|
|
$
|
391,654
|
|
|
$
|
8,490
|
|
Other investments (equity securities)
|
|
$
|
2,650
|
|
|
$
|
2,650
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(in thousands)
|
Years Ended
|
||||||
Level 3 Fair Value Measurements:
|
December 31, 2019
|
|
December 31, 2018
|
||||
Balance at beginning of year
|
$
|
8,490
|
|
|
$
|
9,151
|
|
Acquired balances
|
300
|
|
|
—
|
|
||
Paydowns/Sales/Settlements
|
(5,660
|
)
|
|
(661
|
)
|
||
Balance at end of year
|
$
|
3,130
|
|
|
$
|
8,490
|
|
|
(in thousands)
|
|
|
|
Fair Value Measurements Using
|
||||||||||||
Measured at Fair Value on a Nonrecurring Basis:
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impaired loans
|
|
$
|
16,150
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
16,150
|
|
OREO
|
|
1,000
|
|
|
—
|
|
|
—
|
|
|
1,000
|
|
||||
MSR asset
|
|
8,420
|
|
|
—
|
|
|
—
|
|
|
8,420
|
|
||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impaired loans
|
|
$
|
9,939
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,939
|
|
OREO
|
|
420
|
|
|
—
|
|
|
—
|
|
|
420
|
|
||||
MSR asset
|
|
6,347
|
|
|
—
|
|
|
—
|
|
|
6,347
|
|
December 31, 2019
|
|||||||||||||||||||
(in thousands)
|
Carrying
Amount
|
|
Estimated
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
$
|
182,059
|
|
|
$
|
182,059
|
|
|
$
|
182,059
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Certificates of deposit in other banks
|
19,305
|
|
|
19,310
|
|
|
—
|
|
|
19,310
|
|
|
—
|
|
|||||
Securities AFS
|
449,302
|
|
|
449,302
|
|
|
—
|
|
|
446,172
|
|
|
3,130
|
|
|||||
Other investments
|
24,072
|
|
|
24,072
|
|
|
3,375
|
|
|
16,759
|
|
|
3,938
|
|
|||||
Loans held for sale
|
2,706
|
|
|
2,753
|
|
|
—
|
|
|
2,753
|
|
|
—
|
|
|||||
Loans, net
|
2,559,779
|
|
|
2,593,110
|
|
|
—
|
|
|
—
|
|
|
2,593,110
|
|
|||||
BOLI
|
78,140
|
|
|
78,140
|
|
|
78,140
|
|
|
—
|
|
|
—
|
|
|||||
MSR asset
|
5,919
|
|
|
8,420
|
|
|
—
|
|
|
—
|
|
|
8,420
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
$
|
2,954,453
|
|
|
$
|
2,956,229
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,956,229
|
|
Long-term borrowings
|
67,629
|
|
|
66,816
|
|
|
—
|
|
|
25,075
|
|
|
41,741
|
|
|
December 31, 2018
|
|||||||||||||||||||
(in thousands)
|
Carrying
Amount
|
|
Estimated
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
$
|
249,526
|
|
|
$
|
249,526
|
|
|
$
|
249,526
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Certificates of deposit in other banks
|
993
|
|
|
993
|
|
|
—
|
|
|
993
|
|
|
—
|
|
|||||
Securities AFS
|
400,144
|
|
|
400,144
|
|
|
—
|
|
|
391,654
|
|
|
8,490
|
|
|||||
Other investments
|
17,997
|
|
|
17,997
|
|
|
2,650
|
|
|
13,189
|
|
|
2,158
|
|
|||||
Loans held for sale
|
1,639
|
|
|
1,662
|
|
|
—
|
|
|
1,662
|
|
|
—
|
|
|||||
Loans, net
|
2,153,028
|
|
|
2,139,322
|
|
|
—
|
|
|
—
|
|
|
2,139,322
|
|
|||||
BOLI
|
66,310
|
|
|
66,310
|
|
|
66,310
|
|
|
—
|
|
|
—
|
|
|||||
MSR asset
|
3,749
|
|
|
6,347
|
|
|
—
|
|
|
—
|
|
|
6,347
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
$
|
2,614,138
|
|
|
$
|
2,614,995
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,614,995
|
|
Long-term borrowings
|
77,305
|
|
|
75,923
|
|
|
—
|
|
|
34,907
|
|
|
41,016
|
|
|
Balance Sheets
|
December 31,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Assets
|
|
|
|
|
|
||
Cash and due from subsidiary
|
$
|
70,426
|
|
|
$
|
45,279
|
|
Investments
|
6,650
|
|
|
4,500
|
|
||
Investments in subsidiaries
|
487,644
|
|
|
384,839
|
|
||
Goodwill
|
(3,266
|
)
|
|
(3,266
|
)
|
||
Other assets
|
396
|
|
|
53
|
|
||
Total assets
|
$
|
561,850
|
|
|
$
|
431,405
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
||
Junior subordinated debentures
|
$
|
30,575
|
|
|
$
|
30,096
|
|
Subordinated notes
|
11,993
|
|
|
11,957
|
|
||
Other liabilities
|
3,020
|
|
|
2,743
|
|
||
Stockholders’ equity
|
516,262
|
|
|
386,609
|
|
||
Total liabilities and stockholders’ equity
|
$
|
561,850
|
|
|
$
|
431,405
|
|
Statements of Income
|
Years Ended December 31,
|
||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Interest income
|
$
|
55
|
|
|
$
|
52
|
|
|
$
|
46
|
|
Interest expense
|
2,936
|
|
|
2,844
|
|
|
2,415
|
|
|||
Net interest expense
|
(2,881
|
)
|
|
(2,792
|
)
|
|
(2,369
|
)
|
|||
Dividend income from subsidiaries
|
50,363
|
|
|
40,775
|
|
|
32,000
|
|
|||
Operating expense
|
(321
|
)
|
|
(364
|
)
|
|
(369
|
)
|
|||
Gain (loss) on investments, net
|
1,015
|
|
|
265
|
|
|
1,411
|
|
|||
Income tax benefit
|
506
|
|
|
305
|
|
|
1,329
|
|
|||
Earnings before equity in undistributed income (loss) of subsidiaries
|
48,682
|
|
|
38,189
|
|
|
32,002
|
|
|||
Equity in undistributed income (loss) of subsidiaries
|
5,959
|
|
|
2,847
|
|
|
1,148
|
|
|||
Net income attributable to Nicolet Bankshares, Inc.
|
$
|
54,641
|
|
|
$
|
41,036
|
|
|
$
|
33,150
|
|
|
Statements of Cash Flows
|
Years Ended December 31,
|
||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Cash Flows From Operating Activities:
|
|
|
|
|
|
|
|
|
|||
Net income attributable to Nicolet Bankshares, Inc.
|
$
|
54,641
|
|
|
$
|
41,036
|
|
|
$
|
33,150
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Accretion of discounts
|
515
|
|
|
515
|
|
|
501
|
|
|||
(Gain) loss on investments, net
|
(1,015
|
)
|
|
(265
|
)
|
|
(1,411
|
)
|
|||
Change in other assets and liabilities, net
|
(421
|
)
|
|
(25
|
)
|
|
(1,384
|
)
|
|||
Equity in undistributed (income) loss of subsidiaries, net of dividends
|
(5,959
|
)
|
|
(2,847
|
)
|
|
(1,148
|
)
|
|||
Net cash provided by operating activities
|
47,761
|
|
|
38,414
|
|
|
29,708
|
|
|||
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
|||
Proceeds from sale of investments
|
—
|
|
|
708
|
|
|
317
|
|
|||
Purchases of investments
|
(2,484
|
)
|
|
(920
|
)
|
|
—
|
|
|||
Net cash paid in business combinations
|
(412
|
)
|
|
—
|
|
|
(19,287
|
)
|
|||
Net cash used in investing activities
|
(2,896
|
)
|
|
(212
|
)
|
|
(18,970
|
)
|
|||
Cash Flows From Financing Activities:
|
|
|
|
|
|
|
|
|
|||
Purchase and retirement of common stock
|
(28,460
|
)
|
|
(22,749
|
)
|
|
(15,007
|
)
|
|||
Proceeds from issuance of common stock, net
|
8,742
|
|
|
1,800
|
|
|
4,030
|
|
|||
Net cash used in financing activities
|
(19,718
|
)
|
|
(20,949
|
)
|
|
(10,977
|
)
|
|||
Net increase (decrease) in cash and due from subsidiary
|
25,147
|
|
|
17,253
|
|
|
(239
|
)
|
|||
Beginning cash and due from subsidiary
|
45,279
|
|
|
28,026
|
|
|
28,265
|
|
|||
Ending cash and due from subsidiary
|
$
|
70,426
|
|
|
$
|
45,279
|
|
|
$
|
28,026
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands, except per share data)
|
2019
|
|
2018
|
|
2017
|
||||||
Net income attributable to Nicolet Bankshares, Inc.
|
$
|
54,641
|
|
|
$
|
41,036
|
|
|
$
|
33,150
|
|
Weighted average common shares outstanding
|
9,562
|
|
|
9,640
|
|
|
9,440
|
|
|||
Effect of dilutive common stock awards
|
338
|
|
|
316
|
|
|
518
|
|
|||
Diluted weighted average common shares outstanding
|
9,900
|
|
|
9,956
|
|
|
9,958
|
|
|||
Basic earnings per common share
|
$
|
5.71
|
|
|
$
|
4.26
|
|
|
$
|
3.51
|
|
Diluted earnings per common share
|
$
|
5.52
|
|
|
$
|
4.12
|
|
|
$
|
3.33
|
|
|
|
Number of securities to
be issued upon exercise
of outstanding options,
warrants and rights (a) (1)
|
Weighted average
exercise price of
outstanding
options, warrants
and rights (b) (2)
|
Number of securities remaining
available for future issuance
under equity compensation
plans (excluding securities
reflected in column (a)) (c)
|
||||
Plan Category
|
|
|
|
|
|
|
|
Equity compensation plans approved by security holders
|
1,466,254
|
|
$
|
48.75
|
|
1,414,166
|
|
Equity compensation plans not approved by security holders
|
—
|
|
—
|
|
—
|
|
|
Total at December 31, 2019
|
1,466,254
|
|
$
|
48.75
|
|
1,414,166
|
|
EXHIBIT INDEX
|
||
|
||
Exhibit
|
Description of Exhibit
|
|
2.1
|
|
|
2.2
|
|
|
2.3
|
|
|
3.1
|
|
|
3.2
|
|
|
4.1
|
|
|
4.7
|
|
|
4.8
|
|
|
10.1
|
|
[Reserved]
|
10.2
|
|
[Reserved]
|
10.3
|
|
[Reserved]
|
10.4†
|
|
|
10.5†
|
|
|
10.6†
|
|
|
10.7†
|
|
|
10.8†
|
|
|
10.9†
|
|
|
10.10
|
|
|
10.11
|
|
[Reserved]
|
10.12†
|
|
|
10.13†
|
|
|
10.14
|
|
[Reserved]
|
10.15†
|
|
|
10.16†
|
|
|
10.17†
|
|
|
21.1
|
|
|
23.1
|
|
|
23.2
|
|
|
31.1
|
|
|
31.2
|
|
|
32.1
|
|
|
32.2
|
|
|
101
|
|
The following material from Nicolet’s Form 10-K Report for the year ended December 31, 2019, formatted in eXtensible Business Reporting Language: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Changes in Stockholders’ Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements.
|
|
|
NICOLET BANKSHARES, INC.
|
|
|
|
|
|
February 28, 2020
|
|
By:
|
/s/ Robert B. Atwell
|
|
|
|
Robert B. Atwell, Chairman and Chief Executive Officer
|
/s/ Robert B. Atwell
|
|
/s/ Andrew F. Hetzel, Jr.
|
Robert B. Atwell
|
|
Andrew F. Hetzel, Jr.
|
Chairman, President and Chief Executive Officer
|
|
Director
|
(Principal Executive Officer)
|
|
|
|
|
|
/s/ Ann K. Lawson
|
|
/s/ Donald J. Long, Jr.
|
Ann K. Lawson
|
|
Donald J. Long, Jr.
|
Chief Financial Officer
|
|
Director
|
(Principal Financial and Accounting Officer)
|
|
|
|
|
|
/s/ Michael E. Daniels
|
|
/s/ Dustin J. McClone
|
Michael E. Daniels
|
|
Dustin J. McClone
|
Director, Executive Vice President and Secretary
|
|
Director
|
|
|
|
/s/ Rachel Campos-Duffy
|
|
/s/ Susan L. Merkatoris
|
Rachel Campos-Duffy
|
|
Susan L. Merkatoris
|
Director
|
|
Director
|
|
|
|
/s/ John N. Dykema
|
|
/s/ Randy J. Rose
|
John N. Dykema
|
|
Randy J. Rose
|
Director
|
|
Director
|
|
|
|
/s/ Terrence R. Fulwiler
|
|
/s/ Oliver Pierce Smith
|
Terrence R. Fulwiler
|
|
Oliver Pierce Smith
|
Director
|
|
Director
|
|
|
|
/s/ Christopher J. Ghidorzi
|
|
/s/ Robert J. Weyers
|
Christopher J. Ghidorzi
|
|
Robert J. Weyers
|
Director
|
|
Director
|
|
|
|
Name and jurisdiction of incorporation/organization
|
Equity Interest Held by Registrant
|
|
|
Nicolet National Bank, organized under the laws of the United States of America
|
100%
|
|
|
Brookfield Investment Partners, LLC, a Wisconsin limited liability company
|
100%
|
|
|
Nicolet Advisory Services, LLC, a Wisconsin limited liability company
|
100%
|
|
|
Nicolet Joint Ventures, LLC, a Wisconsin limited liability company
|
50%
|
Name and jurisdiction of incorporation/organization
|
Equity Interest Held by Nicolet National Bank
|
|
|
|
|
Nicolet Investments, Inc., a Nevada corporation
|
100%
|
|
|
|
|
Nicolet Financial Group, LLC, a Wisconsin limited liability company
|
100%
|
|
|
|
|
NNB Properties, LLC, a Wisconsin limited liability company
|
100%
|
|
|
|
|
United Financial Services, Inc., a Wisconsin corporation
|
96.2
|
%
|
Name and jurisdiction of incorporation/organization
|
Equity Interest Held by UFS, Inc.
|
|
|
|
|
United Financial Services, LLC, a Wisconsin limited liability company
|
10.4
|
%
|
EXHIBIT 31.1
|
1.
|
I have reviewed this annual report on Form 10-K of Nicolet Bankshares, Inc. (the “registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
February 28, 2020
|
|
/s/ Robert B. Atwell
|
|
|
Robert B. Atwell
|
|
|
Chairman, President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
EXHIBIT 31.2
|
1.
|
I have reviewed this annual report on Form 10-K of Nicolet Bankshares, Inc. (the “registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
February 28, 2020
|
/s/ Ann K. Lawson
|
|
Ann K. Lawson
|
|
Chief Financial Officer
|
|
(Principal Financial and Accounting Officer)
|
Exhibit 32.1
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
February 28, 2020
|
/s/ Robert B. Atwell
|
|
Robert B. Atwell
|
|
Chairman, President and Chief Executive Officer
|
|
(Principal Executive Officer)
|
Exhibit 32.2
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
February 28, 2020
|
/s/ Ann K. Lawson
|
|
Ann K. Lawson
|
|
Chief Financial Officer
|
|
(Principal Financial and Accounting Officer)
|