Securities registered pursuant to Section 12(b) of the Act:
|
||
|
|
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, par value $0.01 per share
|
NCBS
|
The NASDAQ Stock Market LLC
|
Large accelerated filer ¨
|
Accelerated filer x
|
|
|
Non-accelerated filer ¨
|
Smaller reporting company ¨
|
|
|
Emerging Growth Company ¨
|
|
|
|
PAGE
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|
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|
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|
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
(Unaudited)
|
|
(Audited)
|
||||
Assets
|
|
|
|
||||
Cash and due from banks
|
$
|
53,741
|
|
|
$
|
75,433
|
|
Interest-earning deposits
|
188,219
|
|
|
106,626
|
|
||
Cash and cash equivalents
|
241,960
|
|
|
182,059
|
|
||
Certificates of deposit in other banks
|
18,804
|
|
|
19,305
|
|
||
Securities available for sale (“AFS”), at fair value
|
511,860
|
|
|
449,302
|
|
||
Other investments
|
27,176
|
|
|
24,072
|
|
||
Loans held for sale
|
3,929
|
|
|
2,706
|
|
||
Loans
|
2,607,424
|
|
|
2,573,751
|
|
||
Allowance for credit losses - loans (“ACL-Loans”)
|
(26,202
|
)
|
|
(13,972
|
)
|
||
Loans, net
|
2,581,222
|
|
|
2,559,779
|
|
||
Premises and equipment, net
|
60,276
|
|
|
56,469
|
|
||
Bank owned life insurance (“BOLI”)
|
78,665
|
|
|
78,140
|
|
||
Goodwill and other intangibles, net
|
164,974
|
|
|
165,967
|
|
||
Accrued interest receivable and other assets
|
43,688
|
|
|
39,461
|
|
||
Total assets
|
$
|
3,732,554
|
|
|
$
|
3,577,260
|
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity
|
|
|
|
||||
Liabilities:
|
|
|
|
||||
Noninterest-bearing demand deposits
|
$
|
791,563
|
|
|
$
|
819,055
|
|
Interest-bearing deposits
|
2,231,903
|
|
|
2,135,398
|
|
||
Total deposits
|
3,023,466
|
|
|
2,954,453
|
|
||
Short-term borrowings
|
75,000
|
|
|
—
|
|
||
Long-term borrowings
|
82,741
|
|
|
67,629
|
|
||
Accrued interest payable and other liabilities
|
39,607
|
|
|
38,188
|
|
||
Total liabilities
|
3,220,814
|
|
|
3,060,270
|
|
||
|
|
|
|
||||
Stockholders’ Equity:
|
|
|
|
||||
Common stock
|
104
|
|
|
106
|
|
||
Additional paid-in capital
|
299,903
|
|
|
312,733
|
|
||
Retained earnings
|
203,385
|
|
|
199,005
|
|
||
Accumulated other comprehensive income (loss)
|
7,579
|
|
|
4,418
|
|
||
Total Nicolet Bankshares, Inc. stockholders’ equity
|
510,971
|
|
|
516,262
|
|
||
Noncontrolling interest
|
769
|
|
|
728
|
|
||
Total stockholders’ equity and noncontrolling interest
|
511,740
|
|
|
516,990
|
|
||
Total liabilities, noncontrolling interest and stockholders’ equity
|
$
|
3,732,554
|
|
|
$
|
3,577,260
|
|
|
|
|
|
||||
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
|
10,408,375
|
|
|
10,587,738
|
|
||
Common shares issued
|
10,428,896
|
|
|
10,610,259
|
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
Interest income:
|
|
|
|
||||
Loans, including loan fees
|
$
|
33,778
|
|
|
$
|
29,968
|
|
Investment securities:
|
|
|
|
||||
Taxable
|
2,072
|
|
|
1,633
|
|
||
Tax-exempt
|
491
|
|
|
549
|
|
||
Other interest income
|
662
|
|
|
1,009
|
|
||
Total interest income
|
37,003
|
|
|
33,159
|
|
||
Interest expense:
|
|
|
|
||||
Deposits
|
4,957
|
|
|
4,777
|
|
||
Short-term borrowings
|
27
|
|
|
—
|
|
||
Long-term borrowings
|
756
|
|
|
907
|
|
||
Total interest expense
|
5,740
|
|
|
5,684
|
|
||
Net interest income
|
31,263
|
|
|
27,475
|
|
||
Provision for credit losses
|
3,000
|
|
|
200
|
|
||
Net interest income after provision for credit losses
|
28,263
|
|
|
27,275
|
|
||
Noninterest income:
|
|
|
|
||||
Trust services fee income
|
1,579
|
|
|
1,468
|
|
||
Brokerage fee income
|
2,322
|
|
|
1,810
|
|
||
Mortgage income, net
|
2,327
|
|
|
1,203
|
|
||
Service charges on deposit accounts
|
1,225
|
|
|
1,170
|
|
||
Card interchange income
|
1,562
|
|
|
1,420
|
|
||
BOLI income
|
703
|
|
|
459
|
|
||
Asset gains (losses), net
|
(654
|
)
|
|
172
|
|
||
Other income
|
521
|
|
|
1,484
|
|
||
Total noninterest income
|
9,585
|
|
|
9,186
|
|
||
Noninterest expense:
|
|
|
|
||||
Personnel
|
13,323
|
|
|
12,537
|
|
||
Occupancy, equipment and office
|
4,204
|
|
|
3,750
|
|
||
Business development and marketing
|
1,359
|
|
|
1,281
|
|
||
Data processing
|
2,563
|
|
|
2,355
|
|
||
Intangibles amortization
|
993
|
|
|
1,053
|
|
||
Other expense
|
1,412
|
|
|
1,783
|
|
||
Total noninterest expense
|
23,854
|
|
|
22,759
|
|
||
Income before income tax expense
|
13,994
|
|
|
13,702
|
|
||
Income tax expense
|
3,321
|
|
|
3,352
|
|
||
Net income
|
10,673
|
|
|
10,350
|
|
||
Less: Net income attributable to noncontrolling interest
|
118
|
|
|
83
|
|
||
Net income attributable to Nicolet Bankshares, Inc.
|
$
|
10,555
|
|
|
$
|
10,267
|
|
Earnings per common share:
|
|
|
|
||||
Basic
|
$
|
1.00
|
|
|
$
|
1.09
|
|
Diluted
|
$
|
0.98
|
|
|
$
|
1.05
|
|
Weighted average common shares outstanding:
|
|
|
|
||||
Basic
|
10,515,778
|
|
|
9,461,485
|
|
||
Diluted
|
10,800,636
|
|
|
9,758,351
|
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
Net income
|
$
|
10,673
|
|
|
$
|
10,350
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
||||
Unrealized gains (losses) on securities AFS:
|
|
|
|
||||
Net unrealized holding gains (losses)
|
4,329
|
|
|
7,711
|
|
||
Net realized (gains) losses included in income
|
—
|
|
|
(13
|
)
|
||
Income tax (expense) benefit
|
(1,168
|
)
|
|
(2,079
|
)
|
||
Total other comprehensive income (loss)
|
3,161
|
|
|
5,619
|
|
||
Comprehensive income
|
$
|
13,834
|
|
|
$
|
15,969
|
|
|
Nicolet Bankshares, Inc. Stockholders’ Equity
|
|
|
||||||||||||||||||||
|
Common
Stock
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Non-
controlling
Interest
|
|
Total
|
||||||||||||
Balances at December 31, 2019
|
$
|
106
|
|
|
$
|
312,733
|
|
|
$
|
199,005
|
|
|
$
|
4,418
|
|
|
$
|
728
|
|
|
$
|
516,990
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income, three months ended March 31, 2020
|
—
|
|
|
—
|
|
|
10,555
|
|
|
—
|
|
|
118
|
|
|
10,673
|
|
||||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
3,161
|
|
|
—
|
|
|
3,161
|
|
||||||
Stock-based compensation expense
|
—
|
|
|
1,299
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,299
|
|
||||||
Exercise of stock options, net
|
—
|
|
|
851
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
851
|
|
||||||
Issuance of common stock
|
—
|
|
|
215
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
215
|
|
||||||
Purchase and retirement of common stock
|
(2
|
)
|
|
(15,195
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15,197
|
)
|
||||||
Distribution to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(77
|
)
|
|
(77
|
)
|
||||||
Adoption of new accounting pronouncement (see Note 1)
|
—
|
|
|
—
|
|
|
(6,175
|
)
|
|
—
|
|
|
—
|
|
|
(6,175
|
)
|
||||||
Balances at March 31, 2020
|
$
|
104
|
|
|
$
|
299,903
|
|
|
$
|
203,385
|
|
|
$
|
7,579
|
|
|
$
|
769
|
|
|
$
|
511,740
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balances at December 31, 2018
|
$
|
95
|
|
|
$
|
247,790
|
|
|
$
|
144,364
|
|
|
$
|
(5,640
|
)
|
|
$
|
743
|
|
|
$
|
387,352
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income, three months ended March 31, 2019
|
—
|
|
|
—
|
|
|
10,267
|
|
|
—
|
|
|
83
|
|
|
10,350
|
|
||||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
5,619
|
|
|
—
|
|
|
5,619
|
|
||||||
Stock-based compensation expense
|
—
|
|
|
1,108
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,108
|
|
||||||
Exercise of stock options, net
|
—
|
|
|
698
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
698
|
|
||||||
Issuance of common stock
|
—
|
|
|
148
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
148
|
|
||||||
Purchase and retirement of common stock
|
(1
|
)
|
|
(5,681
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,682
|
)
|
||||||
Balances at March 31, 2019
|
$
|
94
|
|
|
$
|
244,063
|
|
|
$
|
154,631
|
|
|
$
|
(21
|
)
|
|
$
|
826
|
|
|
$
|
399,593
|
|
(In thousands)
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Cash Flows From Operating Activities:
|
|
|
|
||||
Net income
|
$
|
10,673
|
|
|
$
|
10,350
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation, amortization, and accretion
|
2,156
|
|
|
1,108
|
|
||
Provision for credit losses
|
3,000
|
|
|
200
|
|
||
Increase in cash surrender value of life insurance
|
(525
|
)
|
|
(459
|
)
|
||
Stock-based compensation expense
|
1,299
|
|
|
1,108
|
|
||
Asset (gains) losses, net
|
654
|
|
|
(172
|
)
|
||
Gain on sale of loans held for sale, net
|
(3,017
|
)
|
|
(1,102
|
)
|
||
Proceeds from sale of loans held for sale
|
103,950
|
|
|
37,338
|
|
||
Origination of loans held for sale
|
(102,715
|
)
|
|
(36,747
|
)
|
||
Net change in:
|
|
|
|
||||
Accrued interest receivable and other assets
|
(5,567
|
)
|
|
(1,748
|
)
|
||
Accrued interest payable and other liabilities
|
2,257
|
|
|
421
|
|
||
Net cash provided by (used in) operating activities
|
12,165
|
|
|
10,297
|
|
||
Cash Flows From Investing Activities:
|
|
|
|
||||
Net (increase) decrease in loans
|
(32,238
|
)
|
|
(21,728
|
)
|
||
Net (increase) decrease in certificates of deposit in other banks
|
501
|
|
|
1
|
|
||
Purchases of securities AFS
|
(74,759
|
)
|
|
(19,064
|
)
|
||
Proceeds from sales of securities AFS
|
—
|
|
|
8,076
|
|
||
Proceeds from calls and maturities of securities AFS
|
17,931
|
|
|
10,636
|
|
||
Purchases of other investments
|
(3,673
|
)
|
|
(63
|
)
|
||
Net (increase) decrease in premises and equipment
|
(4,961
|
)
|
|
(2,368
|
)
|
||
Net cash provided by (used in) investing activities
|
(97,199
|
)
|
|
(24,510
|
)
|
||
Cash Flows From Financing Activities:
|
|
|
|
||||
Net increase (decrease) in deposits
|
69,143
|
|
|
(75,652
|
)
|
||
Net increase in short-term borrowings
|
75,000
|
|
|
—
|
|
||
Proceeds from long-term borrowings
|
20,000
|
|
|
—
|
|
||
Repayments of long-term borrowings
|
(5,000
|
)
|
|
(64
|
)
|
||
Purchase and retirement of common stock
|
(15,197
|
)
|
|
(5,682
|
)
|
||
Proceeds from issuance of common stock
|
215
|
|
|
148
|
|
||
Proceeds from exercise of stock options
|
851
|
|
|
698
|
|
||
Distribution to noncontrolling interest
|
(77
|
)
|
|
—
|
|
||
Net cash provided by (used in) financing activities
|
144,935
|
|
|
(80,552
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
59,901
|
|
|
(94,765
|
)
|
||
Cash and cash equivalents:
|
|
|
|
||||
Beginning
|
182,059
|
|
|
249,526
|
|
||
Ending *
|
$
|
241,960
|
|
|
$
|
154,761
|
|
Supplemental Disclosures of Cash Flow Information:
|
|
|
|
||||
Cash paid for interest
|
$
|
6,077
|
|
|
$
|
5,466
|
|
Cash paid for taxes
|
—
|
|
|
—
|
|
||
Capitalized mortgage servicing rights
|
559
|
|
|
319
|
|
|
Three Months Ended March 31,
|
||||||
(In thousands, except per share data)
|
2020
|
|
2019
|
||||
Net income attributable to Nicolet Bankshares, Inc.
|
$
|
10,555
|
|
|
$
|
10,267
|
|
Weighted average common shares outstanding
|
10,516
|
|
|
9,461
|
|
||
Effect of dilutive common stock awards
|
285
|
|
|
297
|
|
||
Diluted weighted average common shares outstanding
|
10,801
|
|
|
9,758
|
|
||
Basic earnings per common share*
|
$
|
1.00
|
|
|
$
|
1.09
|
|
Diluted earnings per common share*
|
$
|
0.98
|
|
|
$
|
1.05
|
|
Stock Options
|
|
Option Shares
Outstanding
|
|
Weighted
Average
Exercise Price
|
|
Weighted
Average
Remaining
Life (Years)
|
|
Aggregate
Intrinsic
Value (in
thousands)
|
|||||
Outstanding - December 31, 2019
|
|
1,443,733
|
|
|
$
|
48.75
|
|
|
|
|
|
||
Granted
|
|
39,500
|
|
|
71.89
|
|
|
|
|
|
|||
Exercise of stock options *
|
|
(38,702
|
)
|
|
23.83
|
|
|
|
|
|
|||
Forfeited
|
|
—
|
|
|
—
|
|
|
|
|
|
|||
Outstanding - March 31, 2020
|
|
1,444,531
|
|
|
$
|
50.06
|
|
|
7.3
|
|
$
|
10,543
|
|
Exercisable - March 31, 2020
|
|
554,331
|
|
|
$
|
43.43
|
|
|
6.5
|
|
$
|
6,293
|
|
Restricted Stock
|
|
Weighted
Average Grant
Date Fair Value
|
|
Restricted
Shares
Outstanding
|
|||
Outstanding - December 31, 2019
|
|
$
|
44.94
|
|
|
22,521
|
|
Granted
|
|
72.00
|
|
|
2,500
|
|
|
Vested *
|
|
38.89
|
|
|
(4,500
|
)
|
|
Forfeited
|
|
—
|
|
|
—
|
|
|
Outstanding - March 31, 2020
|
|
$
|
49.56
|
|
|
20,521
|
|
|
March 31, 2020
|
||||||||||||||
(in thousands)
|
Amortized Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
||||||||
U.S. government agency securities
|
$
|
64,180
|
|
|
$
|
288
|
|
|
$
|
216
|
|
|
$
|
64,252
|
|
State, county and municipals
|
155,700
|
|
|
1,661
|
|
|
25
|
|
|
157,336
|
|
||||
Mortgage-backed securities
|
203,575
|
|
|
6,499
|
|
|
121
|
|
|
209,953
|
|
||||
Corporate debt securities
|
78,023
|
|
|
2,516
|
|
|
220
|
|
|
80,319
|
|
||||
Total
|
$
|
501,478
|
|
|
$
|
10,964
|
|
|
$
|
582
|
|
|
$
|
511,860
|
|
|
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
|
|
||||
Total
|
$
|
443,249
|
|
|
$
|
6,967
|
|
|
$
|
914
|
|
|
$
|
449,302
|
|
|
March 31, 2020
|
|||||||||||||||||||||||||
|
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
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,854
|
|
|
$
|
216
|
|
|
$
|
10,854
|
|
|
$
|
216
|
|
|
2
|
|
State, county and municipals
|
12,286
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
12,286
|
|
|
25
|
|
|
30
|
|
||||||
Mortgage-backed securities
|
9,261
|
|
|
32
|
|
|
17,829
|
|
|
89
|
|
|
27,090
|
|
|
121
|
|
|
50
|
|
||||||
Corporate debt securities
|
16,777
|
|
|
220
|
|
|
—
|
|
|
—
|
|
|
16,777
|
|
|
220
|
|
|
9
|
|
||||||
Total
|
$
|
38,324
|
|
|
$
|
277
|
|
|
$
|
28,683
|
|
|
$
|
305
|
|
|
$
|
67,007
|
|
|
$
|
582
|
|
|
91
|
|
|
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
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
$
|
73,112
|
|
|
$
|
379
|
|
|
$
|
65,967
|
|
|
$
|
535
|
|
|
$
|
139,079
|
|
|
$
|
914
|
|
|
212
|
|
|
March 31, 2020
|
||||||
(in thousands)
|
Amortized Cost
|
|
Fair Value
|
||||
Due in less than one year
|
$
|
16,942
|
|
|
$
|
16,982
|
|
Due in one year through five years
|
235,471
|
|
|
237,604
|
|
||
Due after five years through ten years
|
35,066
|
|
|
35,929
|
|
||
Due after ten years
|
10,424
|
|
|
11,392
|
|
||
|
297,903
|
|
|
301,907
|
|
||
Mortgage-backed securities
|
203,575
|
|
|
209,953
|
|
||
Securities AFS
|
$
|
501,478
|
|
|
$
|
511,860
|
|
|
Three Months Ended March 31,
|
||||||
(in thousands)
|
2020
|
|
2019
|
||||
Gross gains
|
$
|
—
|
|
|
$
|
133
|
|
Gross losses
|
—
|
|
|
(120
|
)
|
||
Gains (losses) on sales of securities AFS, net
|
$
|
—
|
|
|
$
|
13
|
|
Proceeds from sales of securities AFS
|
$
|
—
|
|
|
$
|
8,076
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||
(in thousands)
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
||||||
Commercial & industrial
|
$
|
831,257
|
|
|
32
|
%
|
|
$
|
806,189
|
|
|
31
|
%
|
Owner-occupied CRE
|
499,705
|
|
|
19
|
|
|
496,372
|
|
|
19
|
|
||
Agricultural
|
95,991
|
|
|
3
|
|
|
95,450
|
|
|
4
|
|
||
CRE investment
|
448,758
|
|
|
17
|
|
|
443,218
|
|
|
17
|
|
||
Construction & land development
|
96,055
|
|
|
4
|
|
|
92,970
|
|
|
4
|
|
||
Residential construction
|
52,945
|
|
|
2
|
|
|
54,403
|
|
|
2
|
|
||
Residential first mortgage
|
432,126
|
|
|
17
|
|
|
432,167
|
|
|
17
|
|
||
Residential junior mortgage
|
121,105
|
|
|
5
|
|
|
122,771
|
|
|
5
|
|
||
Retail & other
|
29,482
|
|
|
1
|
|
|
30,211
|
|
|
1
|
|
||
Loans
|
2,607,424
|
|
|
100
|
%
|
|
2,573,751
|
|
|
100
|
%
|
||
Less allowance for credit losses - Loans (“ACL-Loans”)
|
26,202
|
|
|
|
|
13,972
|
|
|
|
||||
Loans, net
|
$
|
2,581,222
|
|
|
|
|
$
|
2,559,779
|
|
|
|
||
Allowance for credit losses - Loans to loans
|
1.00
|
%
|
|
|
|
0.54
|
%
|
|
|
|
Three Months Ended
|
|
Year Ended
|
||||||||
(in thousands)
|
March 31, 2020
|
|
March 31, 2019
|
|
December 31, 2019
|
||||||
Beginning balance
|
$
|
13,972
|
|
|
$
|
13,153
|
|
|
$
|
13,153
|
|
Adoption of CECL
|
8,488
|
|
|
—
|
|
|
—
|
|
|||
Initial PCD ACL
|
797
|
|
|
—
|
|
|
—
|
|
|||
Total impact for adoption of CECL
|
9,285
|
|
|
—
|
|
|
—
|
|
|||
Provision for credit losses
|
3,000
|
|
|
200
|
|
|
1,200
|
|
|||
Charge-offs
|
(93
|
)
|
|
(10
|
)
|
|
(927
|
)
|
|||
Recoveries
|
38
|
|
|
27
|
|
|
546
|
|
|||
Net (charge-offs) recoveries
|
(55
|
)
|
|
17
|
|
|
(381
|
)
|
|||
Ending balance
|
$
|
26,202
|
|
|
$
|
13,370
|
|
|
$
|
13,972
|
|
|
TOTAL – Three Months Ended March 31, 2020
|
||||||||||||||||||||||||||||||||||||||
(in thousands)
|
Commercial
& industrial
|
|
Owner-
occupied
CRE
|
|
Agricultural
|
|
CRE
investment
|
|
Construction & land
development
|
|
Residential
construction
|
|
Residential
first mortgage
|
|
Residential
junior
mortgage
|
|
Retail
& other
|
|
Total
|
||||||||||||||||||||
ACL-Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Beginning balance
|
$
|
5,471
|
|
|
$
|
3,010
|
|
|
$
|
579
|
|
|
$
|
1,600
|
|
|
$
|
414
|
|
|
$
|
368
|
|
|
$
|
1,669
|
|
|
$
|
517
|
|
|
$
|
344
|
|
|
$
|
13,972
|
|
Adoption of CECL
|
2,962
|
|
|
1,249
|
|
|
361
|
|
|
1,970
|
|
|
51
|
|
|
124
|
|
|
1,286
|
|
|
351
|
|
|
134
|
|
|
8,488
|
|
||||||||||
Initial PCD ACL
|
797
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
797
|
|
||||||||||
Provision
|
1,253
|
|
|
163
|
|
|
95
|
|
|
795
|
|
|
82
|
|
|
(50
|
)
|
|
533
|
|
|
102
|
|
|
27
|
|
|
3,000
|
|
||||||||||
Charge-offs
|
—
|
|
|
—
|
|
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(73
|
)
|
|
(93
|
)
|
||||||||||
Recoveries
|
30
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
3
|
|
|
4
|
|
|
38
|
|
||||||||||
Net (charge-offs) recoveries
|
30
|
|
|
—
|
|
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
—
|
|
|
1
|
|
|
3
|
|
|
(69
|
)
|
|
(55
|
)
|
||||||||||
Ending balance
|
$
|
10,513
|
|
|
$
|
4,422
|
|
|
$
|
1,035
|
|
|
$
|
4,345
|
|
|
$
|
547
|
|
|
$
|
442
|
|
|
$
|
3,489
|
|
|
$
|
973
|
|
|
$
|
436
|
|
|
$
|
26,202
|
|
As % of ACL-Loans
|
40
|
%
|
|
17
|
%
|
|
4
|
%
|
|
16
|
%
|
|
2
|
%
|
|
2
|
%
|
|
13
|
%
|
|
4
|
%
|
|
2
|
%
|
|
100
|
%
|
|
TOTAL – Year Ended December 31, 2019
|
||||||||||||||||||||||||||||||||||||||
(in thousands)
|
Commercial
& industrial
|
|
Owner-
occupied
CRE
|
|
Agricultural
|
|
CRE
investment
|
|
Construction
& land
development
|
|
Residential
construction
|
|
Residential
first
mortgage
|
|
Residential
junior
mortgage
|
|
Retail &
other
|
|
Total
|
||||||||||||||||||||
ACL-Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Beginning balance
|
$
|
5,271
|
|
|
$
|
2,847
|
|
|
$
|
422
|
|
|
$
|
1,470
|
|
|
$
|
510
|
|
|
$
|
211
|
|
|
$
|
1,646
|
|
|
$
|
472
|
|
|
$
|
304
|
|
|
$
|
13,153
|
|
Provision
|
(61
|
)
|
|
254
|
|
|
157
|
|
|
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) recoveries
|
261
|
|
|
(91
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(226
|
)
|
|
14
|
|
|
(41
|
)
|
|
(298
|
)
|
|
(381
|
)
|
||||||||||
Ending balance
|
$
|
5,471
|
|
|
$
|
3,010
|
|
|
$
|
579
|
|
|
$
|
1,600
|
|
|
$
|
414
|
|
|
$
|
368
|
|
|
$
|
1,669
|
|
|
$
|
517
|
|
|
$
|
344
|
|
|
$
|
13,972
|
|
As % of ACL-Loans
|
39
|
%
|
|
22
|
%
|
|
4
|
%
|
|
11
|
%
|
|
3
|
%
|
|
3
|
%
|
|
12
|
%
|
|
4
|
%
|
|
2
|
%
|
|
100
|
%
|
March 31, 2020
|
Collateral Type
|
|
|
|
||||||||||||||
(in thousands)
|
Real Estate
|
Other Business Assets
|
Total
|
Without an Allowance
|
With an Allowance
|
Allowance Allocation
|
||||||||||||
Commercial & industrial
|
$
|
—
|
|
$
|
5,544
|
|
$
|
5,544
|
|
$
|
978
|
|
$
|
4,566
|
|
$
|
1,683
|
|
Owner-occupied CRE
|
3,168
|
|
—
|
|
3,168
|
|
3,168
|
|
—
|
|
—
|
|
||||||
Agricultural
|
611
|
|
921
|
|
1,532
|
|
663
|
|
869
|
|
61
|
|
||||||
CRE investment
|
1,029
|
|
—
|
|
1,029
|
|
1,029
|
|
—
|
|
—
|
|
||||||
Construction & land development
|
533
|
|
—
|
|
533
|
|
533
|
|
—
|
|
—
|
|
||||||
Residential construction
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Residential first mortgage
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Residential junior mortgage
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Retail & other
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Total loans
|
$
|
5,341
|
|
$
|
6,465
|
|
$
|
11,806
|
|
$
|
6,371
|
|
$
|
5,435
|
|
$
|
1,744
|
|
|
Total Impaired Loans – 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
|
|
|||||
Agricultural
|
2,134
|
|
|
2,172
|
|
|
116
|
|
|
2,311
|
|
|
37
|
|
|||||
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
|
|
|
March 31, 2020
|
||||||||||||||
(in thousands)
|
30-89 Days Past
Due (accruing)
|
|
90 Days & Over or nonaccrual
|
|
Current
|
|
Total
|
||||||||
Commercial & industrial
|
$
|
1,060
|
|
|
$
|
6,050
|
|
|
$
|
824,147
|
|
|
$
|
831,257
|
|
Owner-occupied CRE
|
1,961
|
|
|
3,837
|
|
|
493,907
|
|
|
499,705
|
|
||||
Agricultural
|
1
|
|
|
1,801
|
|
|
94,189
|
|
|
95,991
|
|
||||
CRE investment
|
484
|
|
|
1,029
|
|
|
447,245
|
|
|
448,758
|
|
||||
Construction & land development
|
210
|
|
|
533
|
|
|
95,312
|
|
|
96,055
|
|
||||
Residential construction
|
100
|
|
|
—
|
|
|
52,845
|
|
|
52,945
|
|
||||
Residential first mortgage
|
1,985
|
|
|
953
|
|
|
429,188
|
|
|
432,126
|
|
||||
Residential junior mortgage
|
249
|
|
|
566
|
|
|
120,290
|
|
|
121,105
|
|
||||
Retail & other
|
80
|
|
|
—
|
|
|
29,402
|
|
|
29,482
|
|
||||
Total loans
|
$
|
6,130
|
|
|
$
|
14,769
|
|
|
$
|
2,586,525
|
|
|
$
|
2,607,424
|
|
Percent of total loans
|
0.2
|
%
|
|
0.6
|
%
|
|
99.2
|
%
|
|
100.0
|
%
|
|
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
|
|
||||
Agricultural
|
—
|
|
|
1,898
|
|
|
93,552
|
|
|
95,450
|
|
||||
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
|
%
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||
(in thousands)
|
Nonaccrual Loans
|
% of Total
|
|
Nonaccrual Loans
|
% of Total
|
||||||
Commercial & industrial
|
$
|
6,050
|
|
41
|
%
|
|
$
|
6,249
|
|
44
|
%
|
Owner-occupied CRE
|
3,837
|
|
26
|
|
|
3,311
|
|
23
|
|
||
Agricultural
|
1,801
|
|
12
|
|
|
1,898
|
|
14
|
|
||
CRE investment
|
1,029
|
|
7
|
|
|
1,073
|
|
8
|
|
||
Construction & land development
|
533
|
|
4
|
|
|
20
|
|
—
|
|
||
Residential construction
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
Residential first mortgage
|
953
|
|
6
|
|
|
1,090
|
|
8
|
|
||
Residential junior mortgage
|
566
|
|
4
|
|
|
480
|
|
3
|
|
||
Retail & other
|
—
|
|
—
|
|
|
1
|
|
—
|
|
||
Nonaccrual loans
|
$
|
14,769
|
|
100
|
%
|
|
$
|
14,122
|
|
100
|
%
|
Percent of total loans
|
0.6
|
%
|
|
|
0.5
|
%
|
|
March 31, 2020
|
Amortized Cost Basis by Origination Year
|
|
|
|
|||||||||||||||||||||||
(in thousands)
|
2020
|
2019
|
2018
|
2017
|
2016
|
Prior
|
Revolving
|
Revolving to Term
|
TOTAL
|
||||||||||||||||||
Commercial & industrial
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Grades 1-4
|
$
|
45,598
|
|
$
|
151,079
|
|
$
|
118,171
|
|
$
|
77,690
|
|
$
|
31,727
|
|
$
|
64,618
|
|
$
|
291,990
|
|
$
|
—
|
|
$
|
780,873
|
|
Grade 5
|
39
|
|
3,470
|
|
7,446
|
|
576
|
|
1,479
|
|
2,830
|
|
7,845
|
|
—
|
|
23,685
|
|
|||||||||
Grade 6
|
—
|
|
23
|
|
823
|
|
4
|
|
1
|
|
37
|
|
4,946
|
|
—
|
|
5,834
|
|
|||||||||
Grade 7
|
113
|
|
2,078
|
|
1,115
|
|
1,404
|
|
1,372
|
|
7,393
|
|
7,390
|
|
—
|
|
20,865
|
|
|||||||||
Total
|
$
|
45,750
|
|
$
|
156,650
|
|
$
|
127,555
|
|
$
|
79,674
|
|
$
|
34,579
|
|
$
|
74,878
|
|
$
|
312,171
|
|
$
|
—
|
|
$
|
831,257
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Owner-occupied CRE
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Grades 1-4
|
$
|
21,337
|
|
$
|
68,525
|
|
$
|
84,981
|
|
$
|
64,514
|
|
$
|
50,402
|
|
$
|
175,204
|
|
$
|
2,340
|
|
$
|
—
|
|
$
|
467,303
|
|
Grade 5
|
—
|
|
576
|
|
1,706
|
|
7,882
|
|
396
|
|
6,676
|
|
488
|
|
—
|
|
17,724
|
|
|||||||||
Grade 6
|
—
|
|
—
|
|
—
|
|
1,749
|
|
—
|
|
56
|
|
—
|
|
—
|
|
1,805
|
|
|||||||||
Grade 7
|
—
|
|
168
|
|
285
|
|
2,197
|
|
1,797
|
|
8,426
|
|
—
|
|
—
|
|
12,873
|
|
|||||||||
Total
|
$
|
21,337
|
|
$
|
69,269
|
|
$
|
86,972
|
|
$
|
76,342
|
|
$
|
52,595
|
|
$
|
190,362
|
|
$
|
2,828
|
|
$
|
—
|
|
$
|
499,705
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Agricultural
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Grades 1-4
|
$
|
4,321
|
|
$
|
7,982
|
|
$
|
7,604
|
|
$
|
10,793
|
|
$
|
3,998
|
|
$
|
26,721
|
|
$
|
20,468
|
|
$
|
—
|
|
$
|
81,887
|
|
Grade 5
|
—
|
|
—
|
|
38
|
|
179
|
|
710
|
|
4,064
|
|
89
|
|
—
|
|
5,080
|
|
|||||||||
Grade 6
|
—
|
|
—
|
|
—
|
|
329
|
|
392
|
|
—
|
|
49
|
|
—
|
|
770
|
|
|||||||||
Grade 7
|
—
|
|
—
|
|
58
|
|
117
|
|
1,375
|
|
5,893
|
|
811
|
|
—
|
|
8,254
|
|
|||||||||
Total
|
$
|
4,321
|
|
$
|
7,982
|
|
$
|
7,700
|
|
$
|
11,418
|
|
$
|
6,475
|
|
$
|
36,678
|
|
$
|
21,417
|
|
$
|
—
|
|
$
|
95,991
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
CRE investment
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Grades 1-4
|
$
|
29,442
|
|
$
|
72,601
|
|
$
|
45,017
|
|
$
|
71,370
|
|
$
|
44,213
|
|
$
|
168,170
|
|
$
|
6,238
|
|
$
|
—
|
|
$
|
437,051
|
|
Grade 5
|
—
|
|
—
|
|
55
|
|
—
|
|
394
|
|
6,629
|
|
—
|
|
—
|
|
7,078
|
|
|||||||||
Grade 6
|
—
|
|
105
|
|
—
|
|
915
|
|
656
|
|
—
|
|
—
|
|
—
|
|
1,676
|
|
|||||||||
Grade 7
|
—
|
|
—
|
|
—
|
|
—
|
|
146
|
|
2,807
|
|
—
|
|
—
|
|
2,953
|
|
|||||||||
Total
|
$
|
29,442
|
|
$
|
72,706
|
|
$
|
45,072
|
|
$
|
72,285
|
|
$
|
45,409
|
|
$
|
177,606
|
|
$
|
6,238
|
|
$
|
—
|
|
$
|
448,758
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Construction & land development
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Grades 1-4
|
$
|
7,276
|
|
$
|
46,643
|
|
$
|
20,176
|
|
$
|
3,719
|
|
$
|
2,683
|
|
$
|
9,827
|
|
$
|
1,678
|
|
$
|
—
|
|
$
|
92,002
|
|
Grade 5
|
—
|
|
219
|
|
2,699
|
|
45
|
|
—
|
|
26
|
|
—
|
|
—
|
|
2,989
|
|
|||||||||
Grade 6
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Grade 7
|
—
|
|
149
|
|
—
|
|
—
|
|
—
|
|
915
|
|
—
|
|
—
|
|
1,064
|
|
|||||||||
Total
|
$
|
7,276
|
|
$
|
47,011
|
|
$
|
22,875
|
|
$
|
3,764
|
|
$
|
2,683
|
|
$
|
10,768
|
|
$
|
1,678
|
|
$
|
—
|
|
$
|
96,055
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Residential construction
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Grades 1-4
|
$
|
3,495
|
|
$
|
44,300
|
|
$
|
3,922
|
|
$
|
466
|
|
$
|
29
|
|
$
|
135
|
|
$
|
—
|
|
$
|
—
|
|
$
|
52,347
|
|
Grade 5
|
—
|
|
542
|
|
—
|
|
56
|
|
—
|
|
—
|
|
—
|
|
—
|
|
598
|
|
|||||||||
Grade 6
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Grade 7
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Total
|
$
|
3,495
|
|
$
|
44,842
|
|
$
|
3,922
|
|
$
|
522
|
|
$
|
29
|
|
$
|
135
|
|
$
|
—
|
|
$
|
—
|
|
$
|
52,945
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Residential first mortgage
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Grades 1-4
|
$
|
24,900
|
|
$
|
79,077
|
|
$
|
59,651
|
|
$
|
56,748
|
|
$
|
60,809
|
|
$
|
142,975
|
|
$
|
1,538
|
|
$
|
1
|
|
$
|
425,699
|
|
Grade 5
|
—
|
|
1,215
|
|
296
|
|
309
|
|
697
|
|
1,153
|
|
—
|
|
—
|
|
3,670
|
|
|||||||||
Grade 6
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2
|
|
—
|
|
—
|
|
2
|
|
|||||||||
Grade 7
|
—
|
|
778
|
|
198
|
|
20
|
|
66
|
|
1,693
|
|
—
|
|
—
|
|
2,755
|
|
|||||||||
Total
|
$
|
24,900
|
|
$
|
81,070
|
|
$
|
60,145
|
|
$
|
57,077
|
|
$
|
61,572
|
|
$
|
145,823
|
|
$
|
1,538
|
|
$
|
1
|
|
$
|
432,126
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Residential junior mortgage
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Grades 1-4
|
$
|
927
|
|
$
|
7,017
|
|
$
|
5,941
|
|
$
|
1,856
|
|
$
|
2,021
|
|
$
|
3,844
|
|
$
|
95,033
|
|
$
|
3,861
|
|
$
|
120,500
|
|
Grade 5
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
34
|
|
—
|
|
—
|
|
34
|
|
|||||||||
Grade 6
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Grade 7
|
—
|
|
—
|
|
—
|
|
30
|
|
—
|
|
355
|
|
75
|
|
111
|
|
571
|
|
|||||||||
Total
|
$
|
927
|
|
$
|
7,017
|
|
$
|
5,941
|
|
$
|
1,886
|
|
$
|
2,021
|
|
$
|
4,233
|
|
$
|
95,108
|
|
$
|
3,972
|
|
$
|
121,105
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Retail & other
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Grades 1-4
|
$
|
2,438
|
|
$
|
5,605
|
|
$
|
2,658
|
|
$
|
1,161
|
|
$
|
827
|
|
$
|
1,156
|
|
$
|
15,637
|
|
$
|
—
|
|
$
|
29,482
|
|
Grade 5
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Grade 6
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Grade 7
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Total
|
$
|
2,438
|
|
$
|
5,605
|
|
$
|
2,658
|
|
$
|
1,161
|
|
$
|
827
|
|
$
|
1,156
|
|
$
|
15,637
|
|
$
|
—
|
|
$
|
29,482
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total loans
|
$
|
139,886
|
|
$
|
492,152
|
|
$
|
362,840
|
|
$
|
304,129
|
|
$
|
206,190
|
|
$
|
641,639
|
|
$
|
456,615
|
|
$
|
3,973
|
|
$
|
2,607,424
|
|
|
March 31, 2020
|
||||||||||||||||||
(in thousands)
|
Grades 1- 4
|
|
Grade 5
|
|
Grade 6
|
|
Grade 7
|
|
Total
|
||||||||||
Commercial & industrial
|
$
|
780,873
|
|
|
$
|
23,685
|
|
|
$
|
5,834
|
|
|
$
|
20,865
|
|
|
$
|
831,257
|
|
Owner-occupied CRE
|
467,303
|
|
|
17,724
|
|
|
1,805
|
|
|
12,873
|
|
|
499,705
|
|
|||||
Agricultural
|
81,887
|
|
|
5,080
|
|
|
770
|
|
|
8,254
|
|
|
95,991
|
|
|||||
CRE investment
|
437,051
|
|
|
7,078
|
|
|
1,676
|
|
|
2,953
|
|
|
448,758
|
|
|||||
Construction & land development
|
92,002
|
|
|
2,989
|
|
|
—
|
|
|
1,064
|
|
|
96,055
|
|
|||||
Residential construction
|
52,347
|
|
|
598
|
|
|
—
|
|
|
—
|
|
|
52,945
|
|
|||||
Residential first mortgage
|
425,699
|
|
|
3,670
|
|
|
2
|
|
|
2,755
|
|
|
432,126
|
|
|||||
Residential junior mortgage
|
120,500
|
|
|
34
|
|
|
—
|
|
|
571
|
|
|
121,105
|
|
|||||
Retail & other
|
29,482
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29,482
|
|
|||||
Total loans
|
$
|
2,487,144
|
|
|
$
|
60,858
|
|
|
$
|
10,087
|
|
|
$
|
49,335
|
|
|
$
|
2,607,424
|
|
Percent of total
|
95.4
|
%
|
|
2.3
|
%
|
|
0.4
|
%
|
|
1.9
|
%
|
|
100.0
|
%
|
|
December 31, 2019
|
||||||||||||||||||
(in thousands)
|
Grades 1- 4
|
|
Grade 5
|
|
Grade 6
|
|
Grade 7
|
|
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
|
|
|||||
Agricultural
|
77,082
|
|
|
6,785
|
|
|
3,275
|
|
|
8,308
|
|
|
95,450
|
|
|||||
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
|
95.5
|
%
|
|
2.5
|
%
|
|
0.6
|
%
|
|
1.4
|
%
|
|
100.0
|
%
|
|
Three Months Ended
|
|
Year Ended
|
||||
(in thousands)
|
March 31, 2019
|
|
December 31, 2019
|
||||
Balance at beginning of period
|
$
|
6,408
|
|
|
$
|
6,408
|
|
Acquired balance, net
|
—
|
|
|
911
|
|
||
Accretion to loan interest income
|
(221
|
)
|
|
(4,713
|
)
|
||
Disposals of loans
|
—
|
|
|
(679
|
)
|
||
Balance at end of period
|
$
|
6,187
|
|
|
$
|
1,927
|
|
|
Three Months Ended
|
|
Year Ended
|
||||
(in thousands)
|
March 31, 2020
|
|
December 31, 2019
|
||||
Goodwill
|
$
|
151,198
|
|
|
$
|
151,198
|
|
Core deposit intangibles
|
10,031
|
|
|
10,897
|
|
||
Customer list intangibles
|
3,745
|
|
|
3,872
|
|
||
Other intangibles
|
13,776
|
|
|
14,769
|
|
||
Goodwill and other intangibles, net
|
$
|
164,974
|
|
|
$
|
165,967
|
|
|
Three Months Ended
|
|
Year Ended
|
||||
(in thousands)
|
March 31, 2020
|
|
December 31, 2019
|
||||
Goodwill:
|
|
|
|
||||
Goodwill at beginning of year
|
$
|
151,198
|
|
|
$
|
107,366
|
|
Acquisition
|
—
|
|
|
44,594
|
|
||
Impairment
|
—
|
|
|
(762
|
)
|
||
Goodwill at end of period
|
$
|
151,198
|
|
|
$
|
151,198
|
|
|
Three Months Ended
|
|
Year Ended
|
||||
(in thousands)
|
March 31, 2020
|
|
December 31, 2019
|
||||
Core deposit intangibles:
|
|
|
|
||||
Gross carrying amount
|
$
|
30,715
|
|
|
$
|
30,715
|
|
Accumulated amortization
|
(20,684
|
)
|
|
(19,818
|
)
|
||
Net book value
|
$
|
10,031
|
|
|
$
|
10,897
|
|
Additions during the period
|
$
|
—
|
|
|
$
|
1,700
|
|
Amortization during the period
|
$
|
866
|
|
|
$
|
3,365
|
|
Customer list intangibles:
|
|
|
|
||||
Gross carrying amount
|
$
|
5,523
|
|
|
$
|
5,523
|
|
Accumulated amortization
|
(1,778
|
)
|
|
(1,651
|
)
|
||
Net book value
|
$
|
3,745
|
|
|
$
|
3,872
|
|
Additions during the period
|
$
|
—
|
|
|
$
|
—
|
|
Amortization during the period
|
$
|
127
|
|
|
$
|
507
|
|
|
Three Months Ended
|
|
Year Ended
|
||||
(in thousands)
|
March 31, 2020
|
|
December 31, 2019
|
||||
Mortgage servicing rights ("MSR") asset:
|
|
|
|
||||
MSR asset at beginning of year
|
$
|
5,919
|
|
|
$
|
3,749
|
|
Capitalized MSR
|
559
|
|
|
2,876
|
|
||
MSR asset acquired
|
—
|
|
|
160
|
|
||
Amortization during the period
|
(284
|
)
|
|
(866
|
)
|
||
MSR asset at end of period
|
$
|
6,194
|
|
|
$
|
5,919
|
|
Valuation allowance at beginning of year
|
$
|
—
|
|
|
$
|
—
|
|
Additions
|
(175
|
)
|
|
—
|
|
||
Valuation allowance at end of period
|
$
|
(175
|
)
|
|
$
|
—
|
|
MSR asset, net
|
$
|
6,019
|
|
|
$
|
5,919
|
|
Fair value of MSR asset at end of period
|
$
|
8,807
|
|
|
$
|
8,420
|
|
Residential mortgage loans serviced for others
|
$
|
890,162
|
|
|
$
|
847,756
|
|
Net book value of MSR asset to loans serviced for others
|
0.68
|
%
|
|
0.70
|
%
|
(in thousands)
|
Core deposit
intangibles
|
|
Customer list
intangibles
|
|
MSR asset
|
||||||
Year ending December 31,
|
|
|
|
|
|
||||||
2020 (remaining nine months)
|
$
|
2,127
|
|
|
$
|
380
|
|
|
$
|
829
|
|
2021
|
2,453
|
|
|
507
|
|
|
937
|
|
|||
2022
|
1,987
|
|
|
507
|
|
|
930
|
|
|||
2023
|
1,490
|
|
|
483
|
|
|
962
|
|
|||
2024
|
1,010
|
|
|
449
|
|
|
541
|
|
|||
2025
|
573
|
|
|
449
|
|
|
541
|
|
|||
Thereafter
|
391
|
|
|
970
|
|
|
1,454
|
|
|||
Total
|
$
|
10,031
|
|
|
$
|
3,745
|
|
|
$
|
6,194
|
|
(in thousands)
|
March 31, 2020
|
|
December 31, 2019
|
||||
FHLB advances
|
$
|
40,046
|
|
|
$
|
25,061
|
|
Junior subordinated debentures
|
30,695
|
|
|
30,575
|
|
||
Subordinated notes
|
12,000
|
|
|
11,993
|
|
||
Total long-term borrowings
|
$
|
82,741
|
|
|
$
|
67,629
|
|
Percent of fixed rate long-term borrowings
|
70
|
%
|
|
64
|
%
|
||
Percent of floating rate long-term borrowings
|
30
|
%
|
|
36
|
%
|
|
|
|
|
Junior Subordinated Debentures
|
||||||||||||||
|
|
|
|
|
|
3/31/2020
|
|
3/31/2020
|
|
12/31/19
|
||||||||
(in thousands)
|
|
Maturity
Date
|
|
Par
|
|
Unamortized
Discount
|
|
Carrying
Value
|
|
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
|
|
|
(3,122
|
)
|
|
7,188
|
|
|
7,138
|
|
||||
2006 Baylake Corp. (3)
|
|
9/30/2036
|
|
16,598
|
|
|
(3,824
|
)
|
|
12,774
|
|
|
12,715
|
|
||||
2004 First Menasha Bancshares, Inc. (4)
|
|
3/17/2034
|
|
5,155
|
|
|
(608
|
)
|
|
4,547
|
|
|
4,536
|
|
||||
Total
|
|
|
|
$
|
38,249
|
|
|
$
|
(7,554
|
)
|
|
$
|
30,695
|
|
|
$
|
30,575
|
|
(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 2.17% and 3.32% as of March 31, 2020 and December 31, 2019, 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 2.72% and 3.31% as of March 31, 2020 and December 31, 2019, 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 rates were 3.63% and 4.69% as of March 31, 2020 and December 31, 2019, respectively.
|
•
|
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
|
||||||||
March 31, 2020
|
|
|
|
|
|
|
|
|
||||||||
U.S. government agency securities
|
|
$
|
64,252
|
|
|
$
|
—
|
|
|
$
|
64,252
|
|
|
$
|
—
|
|
State, county and municipals
|
|
157,336
|
|
|
—
|
|
|
157,336
|
|
|
—
|
|
||||
Mortgage-backed securities
|
|
209,953
|
|
|
—
|
|
|
209,953
|
|
|
—
|
|
||||
Corporate debt securities
|
|
80,319
|
|
|
—
|
|
|
77,189
|
|
|
3,130
|
|
||||
Securities AFS
|
|
$
|
511,860
|
|
|
$
|
—
|
|
|
$
|
508,730
|
|
|
$
|
3,130
|
|
Other investments (equity securities)
|
|
$
|
3,978
|
|
|
$
|
3,978
|
|
|
$
|
—
|
|
|
$
|
—
|
|
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
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(in thousands)
|
|
Three Months Ended
|
|
Year Ended
|
||||
Level 3 Fair Value Measurements:
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Balance at beginning of year
|
|
$
|
3,130
|
|
|
$
|
8,490
|
|
Acquired balance
|
|
—
|
|
|
300
|
|
||
Paydowns/Sales/Settlements
|
|
—
|
|
|
(5,660
|
)
|
||
Balance at end of period
|
|
$
|
3,130
|
|
|
$
|
3,130
|
|
(in thousands)
|
|
|
|
Fair Value Measurements Using
|
||||||||||||
Measured at Fair Value on a Nonrecurring Basis:
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
March 31, 2020
|
|
|
|
|
|
|
|
|
||||||||
Collateral dependent loans
|
|
$
|
10,062
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,062
|
|
Other real estate owned (“OREO”)
|
|
1,000
|
|
|
—
|
|
|
—
|
|
|
1,000
|
|
||||
MSR asset
|
|
8,807
|
|
|
—
|
|
|
—
|
|
|
8,807
|
|
||||
December 31, 2019
|
|
|
|
|
|
|
|
|
||||||||
Impaired loans
|
|
$
|
16,150
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
16,150
|
|
OREO
|
|
1,000
|
|
|
—
|
|
|
—
|
|
|
1,000
|
|
||||
MSR asset
|
|
8,420
|
|
|
—
|
|
|
—
|
|
|
8,420
|
|
March 31, 2020
|
||||||||||||||||||||
(in thousands)
|
|
Carrying
Amount
|
|
Estimated
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
241,960
|
|
|
$
|
241,960
|
|
|
$
|
241,960
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Certificates of deposit in other banks
|
|
18,804
|
|
|
19,905
|
|
|
—
|
|
|
19,905
|
|
|
—
|
|
|||||
Securities AFS
|
|
511,860
|
|
|
511,860
|
|
|
—
|
|
|
508,730
|
|
|
3,130
|
|
|||||
Other investments, including equity securities
|
|
27,176
|
|
|
27,176
|
|
|
3,978
|
|
|
19,260
|
|
|
3,938
|
|
|||||
Loans held for sale
|
|
3,929
|
|
|
4,006
|
|
|
—
|
|
|
4,006
|
|
|
—
|
|
|||||
Loans, net
|
|
2,581,222
|
|
|
2,659,556
|
|
|
—
|
|
|
—
|
|
|
2,659,556
|
|
|||||
BOLI
|
|
78,665
|
|
|
78,665
|
|
|
78,665
|
|
|
—
|
|
|
—
|
|
|||||
MSR asset
|
|
6,019
|
|
|
8,807
|
|
|
—
|
|
|
—
|
|
|
8,807
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
$
|
3,023,466
|
|
|
$
|
3,029,747
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,029,747
|
|
Short-term borrowings
|
|
75,000
|
|
|
75,000
|
|
|
—
|
|
|
75,000
|
|
|
—
|
|
|||||
Long-term borrowings
|
|
82,741
|
|
|
82,958
|
|
|
—
|
|
|
40,877
|
|
|
42,081
|
|
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, including equity securities
|
|
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
|
|
•
|
the effects of the COVID-19 pandemic on the business, customers, employees and third-party service providers of Nicolet or any of its acquisition targets;
|
•
|
operating, legal and regulatory risks, including the effects of legislative or regulatory developments affecting the financial industry generally or Nicolet specifically;
|
•
|
economic, market, political and competitive forces affecting Nicolet’s banking and wealth management businesses;
|
•
|
changes in interest rates, monetary policy and general economic conditions, which may impact Nicolet’s net interest income;
|
•
|
diversion of management time on pandemic-related issues;
|
•
|
adoption of new accounting standards, including the effects from the adoption of the CECL model on January 1, 2020, or changes in existing standards;
|
•
|
changes to statutes, regulations, or regulatory policies or practices resulting from the COVID-19 pandemic;
|
•
|
compliance or operational risks related to new products, services, ventures, or lines of business, if any, that Nicolet may pursue or implement; and
|
•
|
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.
|
|
At or for the Three Months Ended
|
||||||||||||||||||
(In thousands, except per share data)
|
3/31/2020
|
|
12/31/2019
|
|
9/30/2019
|
|
6/30/2019
|
|
3/31/2019
|
||||||||||
Results of operations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income
|
$
|
37,003
|
|
|
$
|
36,192
|
|
|
$
|
34,667
|
|
|
$
|
34,570
|
|
|
$
|
33,159
|
|
Interest expense
|
5,740
|
|
|
5,723
|
|
|
5,477
|
|
|
5,626
|
|
|
5,684
|
|
|||||
Net interest income
|
31,263
|
|
|
30,469
|
|
|
29,190
|
|
|
28,944
|
|
|
27,475
|
|
|||||
Provision for credit losses
|
3,000
|
|
|
300
|
|
|
400
|
|
|
300
|
|
|
200
|
|
|||||
Net interest income after provision for credit losses
|
28,263
|
|
|
30,169
|
|
|
28,790
|
|
|
28,644
|
|
|
27,275
|
|
|||||
Noninterest income
|
9,585
|
|
|
13,309
|
|
|
12,312
|
|
|
18,560
|
|
|
9,186
|
|
|||||
Noninterest expense
|
23,854
|
|
|
25,426
|
|
|
22,887
|
|
|
25,727
|
|
|
22,759
|
|
|||||
Income before income tax expense
|
13,994
|
|
|
18,052
|
|
|
18,215
|
|
|
21,477
|
|
|
13,702
|
|
|||||
Income tax expense
|
3,321
|
|
|
5,670
|
|
|
4,603
|
|
|
2,833
|
|
|
3,352
|
|
|||||
Net income
|
10,673
|
|
|
12,382
|
|
|
13,612
|
|
|
18,644
|
|
|
10,350
|
|
|||||
Net income attributable to noncontrolling interest
|
118
|
|
|
87
|
|
|
82
|
|
|
95
|
|
|
83
|
|
|||||
Net income attributable to Nicolet Bankshares, Inc.
|
$
|
10,555
|
|
|
$
|
12,295
|
|
|
$
|
13,530
|
|
|
$
|
18,549
|
|
|
$
|
10,267
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic
|
$
|
1.00
|
|
|
$
|
1.22
|
|
|
$
|
1.45
|
|
|
$
|
1.98
|
|
|
$
|
1.09
|
|
Diluted
|
$
|
0.98
|
|
|
$
|
1.18
|
|
|
$
|
1.40
|
|
|
$
|
1.91
|
|
|
$
|
1.05
|
|
Common Shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic weighted average
|
10,516
|
|
|
10,061
|
|
|
9,347
|
|
|
9,374
|
|
|
9,461
|
|
|||||
Diluted weighted average
|
10,801
|
|
|
10,452
|
|
|
9,697
|
|
|
9,692
|
|
|
9,758
|
|
|||||
Outstanding (period end)
|
10,408
|
|
|
10,588
|
|
|
9,363
|
|
|
9,327
|
|
|
9,431
|
|
|||||
Period-End Balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loans
|
$
|
2,607,424
|
|
|
$
|
2,573,751
|
|
|
$
|
2,242,931
|
|
|
$
|
2,203,273
|
|
|
$
|
2,189,688
|
|
Allowance for credit losses
|
26,202
|
|
|
13,972
|
|
|
13,620
|
|
|
13,571
|
|
|
13,370
|
|
|||||
Securities available-for-sale, at fair value
|
511,860
|
|
|
449,302
|
|
|
419,300
|
|
|
403,989
|
|
|
407,693
|
|
|||||
Goodwill and other intangibles, net
|
164,974
|
|
|
165,967
|
|
|
121,371
|
|
|
122,285
|
|
|
123,254
|
|
|||||
Total assets
|
3,732,554
|
|
|
3,577,260
|
|
|
3,105,671
|
|
|
3,054,813
|
|
|
3,041,091
|
|
|||||
Deposits
|
3,023,466
|
|
|
2,954,453
|
|
|
2,584,447
|
|
|
2,536,639
|
|
|
2,538,486
|
|
|||||
Stockholders’ equity
|
510,971
|
|
|
516,262
|
|
|
428,014
|
|
|
411,415
|
|
|
398,767
|
|
|||||
Book value per common share
|
49.09
|
|
|
48.76
|
|
|
45.71
|
|
|
44.11
|
|
|
42.28
|
|
|||||
Tangible book value per common share (2)
|
33.24
|
|
|
33.08
|
|
|
32.75
|
|
|
31.00
|
|
|
29.21
|
|
|||||
Average Balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loans
|
$
|
2,584,584
|
|
|
$
|
2,438,908
|
|
|
$
|
2,218,307
|
|
|
$
|
2,189,070
|
|
|
$
|
2,179,420
|
|
Interest-earning assets
|
3,167,505
|
|
|
2,974,974
|
|
|
2,763,997
|
|
|
2,702,357
|
|
|
2,734,936
|
|
|||||
Goodwill and other intangibles, net
|
165,532
|
|
|
147,636
|
|
|
121,895
|
|
|
122,841
|
|
|
123,892
|
|
|||||
Total assets
|
3,555,144
|
|
|
3,339,283
|
|
|
3,094,546
|
|
|
3,022,383
|
|
|
3,047,068
|
|
|||||
Deposits
|
2,920,071
|
|
|
2,756,295
|
|
|
2,563,821
|
|
|
2,514,226
|
|
|
2,556,927
|
|
|||||
Interest-bearing liabilities
|
2,218,592
|
|
|
2,023,448
|
|
|
1,895,754
|
|
|
1,892,775
|
|
|
1,946,210
|
|
|||||
Stockholders’ equity
|
513,558
|
|
|
478,645
|
|
|
420,864
|
|
|
404,345
|
|
|
391,027
|
|
|||||
Financial Ratios: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Return on average assets
|
1.19
|
%
|
|
1.46
|
%
|
|
1.73
|
%
|
|
2.46
|
%
|
|
1.37
|
%
|
|||||
Return on average common equity
|
8.27
|
|
|
10.19
|
|
|
12.75
|
|
|
18.40
|
|
|
10.65
|
|
|||||
Return on average tangible common equity (2)
|
12.20
|
|
|
14.74
|
|
|
17.95
|
|
|
26.43
|
|
|
15.59
|
|
|||||
Average equity to average assets
|
14.45
|
|
|
14.33
|
|
|
13.60
|
|
|
13.38
|
|
|
12.83
|
|
|||||
Stockholders' equity to assets
|
13.69
|
|
|
14.43
|
|
|
13.78
|
|
|
13.47
|
|
|
13.11
|
|
|||||
Tangible common equity to tangible assets (2)
|
9.70
|
|
|
10.27
|
|
|
10.28
|
|
|
9.86
|
|
|
9.44
|
|
|||||
Net interest margin
|
3.94
|
|
|
4.06
|
|
|
4.19
|
|
|
4.28
|
|
|
4.05
|
|
|||||
Net loan charge-offs to average loans
|
0.01
|
|
|
(0.01
|
)
|
|
0.06
|
|
|
0.02
|
|
|
—
|
|
|||||
Nonperforming loans to total loans
|
0.57
|
|
|
0.55
|
|
|
0.41
|
|
|
0.35
|
|
|
0.40
|
|
|||||
Nonperforming assets to total assets
|
0.42
|
|
|
0.42
|
|
|
0.34
|
|
|
0.26
|
|
|
0.30
|
|
|||||
Effective tax rate
|
23.73
|
|
|
31.41
|
|
|
25.27
|
|
|
13.19
|
|
|
24.46
|
|
|||||
Selected Items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest income from resolving PCI loans (rounded)
|
$
|
—
|
|
|
$
|
1,400
|
|
|
$
|
1,800
|
|
|
$
|
1,300
|
|
|
$
|
200
|
|
Tax-equivalent adjustment on net interest income
|
231
|
|
|
257
|
|
|
251
|
|
|
263
|
|
|
272
|
|
•
|
At March 31, 2020, assets were $3.7 billion, an increase of $155 million (4%) from December 31, 2019 and an increase of $691 million (23%) from March 31, 2019. The increase since year-end 2019 is largely due to the March 2020 liquidity actions.
|
•
|
At March 31, 2020, loans were $2.6 billion, an increase of $34 million (1%) over December 31, 2019 (representing organic growth) and $418 million (19%) higher than March 31, 2019 (largely due to the $348 million of Choice loans acquired). Quarterly average loans grew $146 million (24% annualized) over fourth quarter 2019 and grew $405 million (19%) over first quarter 2019, with both comparisons impacted by the timing of the Choice acquisition. For additional information regarding loans, see “BALANCE SHEET ANALYSIS — Loans.”
|
•
|
Total deposits were $3.0 billion at March 31, 2020, a $69 million (2%) increase from December 31, 2019 (with brokered deposits up $121 million from the liquidity actions in March, and core deposits down $52 million, consistent with customary seasonal trends) and $485 million (19%) higher than March 31, 2019 (largely due to the $289 million of Choice deposits acquired and the March 2020 liquidity actions noted above). Quarterly average deposits grew $164 million (24% annualized) over fourth quarter 2019 and grew $363 million (14%) over first quarter 2019, with both comparisons impacted by the timing of the Choice acquisition. For additional information regarding deposits, see “BALANCE SHEET ANALYSIS – Deposits.”
|
•
|
Comparatively, short-term interest rates were 225 bps lower in first quarter 2020 than first quarter 2019, given the 75 bps change in second half 2019 and 150 bps change in March 2020 by the Federal Reserve. The net interest margin was 3.94% for first quarter 2020, 11 bps lower than the comparable 2019 period, with the earning asset yield down 23 bps, the cost of funds favorably lower by 14 bps, and the net free funds unfavorably lower by 2 bps. Net interest income increased $3.8 million or 14% over first quarter 2019, benefiting predominantly from stronger volumes (largely attributable to the inclusion of Choice assets acquired), offset partly by unfavorable net rate changes (largely due to the lower rate environment). For additional information regarding net interest income, see “INCOME STATEMENT ANALYSIS — Net Interest Income.”
|
•
|
Noninterest income excluding net asset gains grew $1.2 million or 14% over first quarter 2019, with all categories except other income up year-over-year, in part from the timing of the Choice acquisition in November 2019. For additional information regarding noninterest income, see “INCOME STATEMENT ANALYSIS — Noninterest Income.”
|
•
|
Noninterest expense increased $1.1 million or 5% over first quarter 2019, in part from the timing of the Choice acquisition in November 2019. For additional information regarding noninterest expense, see “INCOME STATEMENT ANALYSIS — Noninterest Expense.”
|
•
|
Provision for credit losses increased to $3.0 million for the three months ended March 31, 2020, compared to $0.2 million for the three months ended March 31, 2019, largely due to the unprecedented economic disruptions and uncertainty surrounding the COVID-19 pandemic as described in further detail in the “Overview” section. For additional information regarding the allowance for credit losses see “BALANCE SHEET ANALYSIS – Allowance for Credit Losses - Loans.”
|
|
For the Three Months Ended March 31,
|
||||||||||||||||||||
|
2020
|
|
2019
|
||||||||||||||||||
(in thousands)
|
Average
Balance
|
|
Interest
|
|
Average
Yield/Rate
|
|
Average
Balance
|
|
Interest
|
|
Average
Yield/Rate
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans, including loan fees (1)(2)
|
$
|
2,584,584
|
|
|
$
|
33,808
|
|
|
5.19
|
%
|
|
$
|
2,179,420
|
|
|
$
|
30,013
|
|
|
5.51
|
%
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
327,910
|
|
|
2,072
|
|
|
2.53
|
%
|
|
268,249
|
|
|
1,633
|
|
|
2.43
|
%
|
||||
Tax-exempt (2)
|
125,910
|
|
|
692
|
|
|
2.20
|
%
|
|
141,331
|
|
|
776
|
|
|
2.20
|
%
|
||||
Other interest-earning assets
|
129,101
|
|
|
662
|
|
|
2.04
|
%
|
|
145,936
|
|
|
1,009
|
|
|
2.76
|
%
|
||||
Total non-loan earning assets
|
582,921
|
|
|
3,426
|
|
|
2.35
|
%
|
|
555,516
|
|
|
3,418
|
|
|
2.46
|
%
|
||||
Total interest-earning assets
|
3,167,505
|
|
|
$
|
37,234
|
|
|
4.66
|
%
|
|
2,734,936
|
|
|
$
|
33,431
|
|
|
4.89
|
%
|
||
Other assets, net
|
387,639
|
|
|
|
|
|
|
312,132
|
|
|
|
|
|
||||||||
Total assets
|
$
|
3,555,144
|
|
|
|
|
|
|
$
|
3,047,068
|
|
|
|
|
|
||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Savings
|
$
|
351,238
|
|
|
$
|
305
|
|
|
0.35
|
%
|
|
$
|
299,806
|
|
|
$
|
360
|
|
|
0.49
|
%
|
Interest-bearing demand
|
535,296
|
|
|
1,214
|
|
|
0.91
|
%
|
|
513,503
|
|
|
1,321
|
|
|
1.04
|
%
|
||||
Money market accounts ("MMA")
|
660,686
|
|
|
730
|
|
|
0.44
|
%
|
|
579,089
|
|
|
1,010
|
|
|
0.71
|
%
|
||||
Core time deposits
|
427,925
|
|
|
1,933
|
|
|
1.82
|
%
|
|
397,220
|
|
|
1,959
|
|
|
2.00
|
%
|
||||
Brokered deposits
|
158,068
|
|
|
775
|
|
|
1.97
|
%
|
|
79,258
|
|
|
127
|
|
|
0.65
|
%
|
||||
Total interest-bearing deposits
|
2,133,213
|
|
|
4,957
|
|
|
0.93
|
%
|
|
1,868,876
|
|
|
4,777
|
|
|
1.04
|
%
|
||||
Other interest-bearing liabilities
|
85,379
|
|
|
783
|
|
|
3.64
|
%
|
|
77,334
|
|
|
907
|
|
|
4.69
|
%
|
||||
Total interest-bearing liabilities
|
2,218,592
|
|
|
5,740
|
|
|
1.04
|
%
|
|
1,946,210
|
|
|
5,684
|
|
|
1.18
|
%
|
||||
Noninterest-bearing demand
|
786,858
|
|
|
|
|
|
|
688,051
|
|
|
|
|
|
||||||||
Other liabilities
|
36,136
|
|
|
|
|
|
|
21,780
|
|
|
|
|
|
||||||||
Stockholders’ equity
|
513,558
|
|
|
|
|
|
|
391,027
|
|
|
|
|
|
||||||||
Total liabilities and
stockholders’ equity
|
$
|
3,555,144
|
|
|
|
|
|
|
$
|
3,047,068
|
|
|
|
|
|
||||||
Net interest income and rate spread
|
|
|
$
|
31,494
|
|
|
3.62
|
%
|
|
|
|
$
|
27,747
|
|
|
3.71
|
%
|
||||
Tax-equivalent adjustment
|
|
|
$
|
231
|
|
|
|
|
|
|
$
|
272
|
|
|
|
||||||
Net interest income and net interest margin
|
|
|
$
|
31,263
|
|
|
3.94
|
%
|
|
|
|
$
|
27,475
|
|
|
4.05
|
%
|
(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% and adjusted for the disallowance of interest expense.
|
|
For the Three Months Ended March 31, 2020
Compared to March 31, 2019:
|
||||||||||
|
Increase (Decrease) Due to Changes in
|
||||||||||
(in thousands)
|
Volume
|
|
Rate
|
|
Net (1)
|
||||||
Interest-earning assets
|
|
|
|
|
|
||||||
Loans (2)
|
$
|
5,649
|
|
|
$
|
(1,854
|
)
|
|
$
|
3,795
|
|
Investment securities:
|
|
|
|
|
|
||||||
Taxable
|
354
|
|
|
85
|
|
|
439
|
|
|||
Tax-exempt (2)
|
(85
|
)
|
|
1
|
|
|
(84
|
)
|
|||
Other interest-earning assets
|
(23
|
)
|
|
(324
|
)
|
|
(347
|
)
|
|||
Total non-loan earning assets
|
246
|
|
|
(238
|
)
|
|
8
|
|
|||
Total interest-earning assets
|
$
|
5,895
|
|
|
$
|
(2,092
|
)
|
|
$
|
3,803
|
|
Interest-bearing liabilities
|
|
|
|
|
|
||||||
Savings
|
$
|
57
|
|
|
$
|
(112
|
)
|
|
$
|
(55
|
)
|
Interest-bearing demand
|
57
|
|
|
(164
|
)
|
|
(107
|
)
|
|||
MMA
|
131
|
|
|
(411
|
)
|
|
(280
|
)
|
|||
Core time deposits
|
154
|
|
|
(180
|
)
|
|
(26
|
)
|
|||
Brokered deposits
|
213
|
|
|
435
|
|
|
648
|
|
|||
Total interest-bearing deposits
|
612
|
|
|
(432
|
)
|
|
180
|
|
|||
Other interest-bearing liabilities
|
3
|
|
|
(127
|
)
|
|
(124
|
)
|
|||
Total interest-bearing liabilities
|
615
|
|
|
(559
|
)
|
|
56
|
|
|||
Net interest income
|
$
|
5,280
|
|
|
$
|
(1,533
|
)
|
|
$
|
3,747
|
|
(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)
|
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% and adjusted for the disallowance of interest expense.
|
|
Three Months Ended March 31,
|
|||||||||||||
(in thousands)
|
2020
|
|
2019
|
|
$ Change
|
|
% Change
|
|||||||
Trust services fee income
|
$
|
1,579
|
|
|
$
|
1,468
|
|
|
$
|
111
|
|
|
8
|
%
|
Brokerage fee income
|
2,322
|
|
|
1,810
|
|
|
512
|
|
|
28
|
|
|||
Mortgage income, net
|
2,327
|
|
|
1,203
|
|
|
1,124
|
|
|
93
|
|
|||
Service charges on deposit accounts
|
1,225
|
|
|
1,170
|
|
|
55
|
|
|
5
|
|
|||
Card interchange income
|
1,562
|
|
|
1,420
|
|
|
142
|
|
|
10
|
|
|||
BOLI income
|
703
|
|
|
459
|
|
|
244
|
|
|
53
|
|
|||
Other income
|
521
|
|
|
1,484
|
|
|
(963
|
)
|
|
(65
|
)
|
|||
Noninterest income without net gains
|
10,239
|
|
|
9,014
|
|
|
1,225
|
|
|
14
|
|
|||
Asset gains (losses), net
|
(654
|
)
|
|
172
|
|
|
(826
|
)
|
|
N/M
|
|
|||
Total noninterest income
|
$
|
9,585
|
|
|
$
|
9,186
|
|
|
$
|
399
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|||||||
Trust services fee income & Brokerage fee income combined
|
$
|
3,901
|
|
|
$
|
3,278
|
|
|
$
|
623
|
|
|
19
|
%
|
|
Three Months Ended March 31,
|
|||||||||||||
($ in thousands)
|
2020
|
|
2019
|
|
Change
|
|
% Change
|
|||||||
Personnel
|
$
|
13,323
|
|
|
$
|
12,537
|
|
|
$
|
786
|
|
|
6
|
%
|
Occupancy, equipment and office
|
4,204
|
|
|
3,750
|
|
|
454
|
|
|
12
|
|
|||
Business development and marketing
|
1,359
|
|
|
1,281
|
|
|
78
|
|
|
6
|
|
|||
Data processing
|
2,563
|
|
|
2,355
|
|
|
208
|
|
|
9
|
|
|||
Intangibles amortization
|
993
|
|
|
1,053
|
|
|
(60
|
)
|
|
(6
|
)
|
|||
Other expense
|
1,412
|
|
|
1,783
|
|
|
(371
|
)
|
|
(21
|
)
|
|||
Total noninterest expense
|
$
|
23,854
|
|
|
$
|
22,759
|
|
|
$
|
1,095
|
|
|
5
|
%
|
Non-personnel expenses
|
$
|
10,531
|
|
|
$
|
10,222
|
|
|
$
|
309
|
|
|
3
|
%
|
Average full-time equivalent employees
|
580
|
|
|
549
|
|
|
31
|
|
|
6
|
%
|
|
March 31, 2020
|
|
December 31, 2019
|
|
March 31, 2019
|
|||||||||||||||
(in thousands)
|
Amount
|
|
% of Total
|
|
Amount
|
|
% of Total
|
|
Amount
|
|
% of Total
|
|||||||||
Commercial & industrial
|
$
|
831,257
|
|
|
32
|
%
|
|
$
|
806,189
|
|
|
31
|
%
|
|
$
|
711,505
|
|
|
32
|
%
|
Owner-occupied CRE
|
499,705
|
|
|
19
|
|
|
496,372
|
|
|
19
|
|
|
439,440
|
|
|
20
|
|
|||
Agricultural
|
95,991
|
|
|
3
|
|
|
95,450
|
|
|
4
|
|
|
89,078
|
|
|
4
|
|
|||
Commercial
|
1,426,953
|
|
|
54
|
|
|
1,398,011
|
|
|
54
|
|
|
1,240,023
|
|
|
56
|
|
|||
CRE investment
|
448,758
|
|
|
17
|
|
|
443,218
|
|
|
17
|
|
|
342,343
|
|
|
16
|
|
|||
Construction & land development
|
96,055
|
|
|
4
|
|
|
92,970
|
|
|
4
|
|
|
82,308
|
|
|
4
|
|
|||
Commercial real estate
|
544,813
|
|
|
21
|
|
|
536,188
|
|
|
21
|
|
|
424,651
|
|
|
20
|
|
|||
Commercial-based loans
|
1,971,766
|
|
|
75
|
|
|
1,934,199
|
|
|
75
|
|
|
1,664,674
|
|
|
76
|
|
|||
Residential construction
|
52,945
|
|
|
2
|
|
|
54,403
|
|
|
2
|
|
|
34,425
|
|
|
2
|
|
|||
Residential first mortgage
|
432,126
|
|
|
17
|
|
|
432,167
|
|
|
17
|
|
|
350,661
|
|
|
16
|
|
|||
Residential junior mortgage
|
121,105
|
|
|
5
|
|
|
122,771
|
|
|
5
|
|
|
113,628
|
|
|
5
|
|
|||
Residential real estate
|
606,176
|
|
|
24
|
|
|
609,341
|
|
|
24
|
|
|
498,714
|
|
|
23
|
|
|||
Retail & other
|
29,482
|
|
|
1
|
|
|
30,211
|
|
|
1
|
|
|
26,300
|
|
|
1
|
|
|||
Retail-based loans
|
635,658
|
|
|
25
|
|
|
639,552
|
|
|
25
|
|
|
525,014
|
|
|
24
|
|
|||
Total loans
|
$
|
2,607,424
|
|
|
100
|
%
|
|
$
|
2,573,751
|
|
|
100
|
%
|
|
$
|
2,189,688
|
|
|
100
|
%
|
|
Three Months Ended
|
|
Year Ended
|
||||||||
(in thousands)
|
March 31, 2020
|
|
March 31, 2019
|
|
December 31, 2019
|
||||||
ACL-Loans:
|
|
|
|
|
|
||||||
Balance at beginning of period
|
$
|
13,972
|
|
|
$
|
13,153
|
|
|
$
|
13,153
|
|
Adoption of CECL
|
8,488
|
|
|
—
|
|
|
—
|
|
|||
Initial PCD ACL
|
797
|
|
|
—
|
|
|
—
|
|
|||
Total impact for adoption of CECL
|
9,285
|
|
|
—
|
|
|
—
|
|
|||
Provision for credit losses
|
3,000
|
|
|
200
|
|
|
1,200
|
|
|||
Charge-offs
|
(93
|
)
|
|
(10
|
)
|
|
(927
|
)
|
|||
Recoveries
|
38
|
|
|
27
|
|
|
546
|
|
|||
Net (charge-offs) recoveries
|
(55
|
)
|
|
17
|
|
|
(381
|
)
|
|||
Balance at end of period
|
$
|
26,202
|
|
|
$
|
13,370
|
|
|
$
|
13,972
|
|
Net loan (charge-offs) recoveries:
|
|
|
|
|
|
||||||
Commercial & industrial
|
$
|
30
|
|
|
$
|
16
|
|
|
$
|
261
|
|
Owner-occupied CRE
|
—
|
|
|
1
|
|
|
(91
|
)
|
|||
Agricultural
|
—
|
|
|
—
|
|
|
—
|
|
|||
CRE investment
|
(20
|
)
|
|
—
|
|
|
—
|
|
|||
Construction & land development
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential construction
|
—
|
|
|
—
|
|
|
(226
|
)
|
|||
Residential first mortgage
|
1
|
|
|
—
|
|
|
14
|
|
|||
Residential junior mortgage
|
3
|
|
|
2
|
|
|
(41
|
)
|
|||
Retail & other
|
(69
|
)
|
|
(2
|
)
|
|
(298
|
)
|
|||
Total net (charge-offs) recoveries
|
$
|
(55
|
)
|
|
$
|
17
|
|
|
$
|
(381
|
)
|
Ratios:
|
|
|
|
|
|
||||||
ACL-Loans to total loans
|
1.00
|
%
|
|
0.61
|
%
|
|
0.54
|
%
|
|||
Net charge-offs to average loans, annualized
|
0.01
|
%
|
|
—
|
%
|
|
0.02
|
%
|
(in thousands)
|
March 31, 2020
|
|
December 31, 2019
|
|
March 31, 2019
|
||||||
Nonperforming loans:
|
|
|
|
|
|
||||||
Commercial & industrial
|
$
|
6,050
|
|
|
$
|
6,249
|
|
|
$
|
3,871
|
|
Owner-occupied CRE
|
3,837
|
|
|
3,311
|
|
|
2,784
|
|
|||
Agricultural
|
1,801
|
|
|
1,898
|
|
|
174
|
|
|||
Commercial
|
11,688
|
|
|
11,458
|
|
|
6,829
|
|
|||
CRE investment
|
1,029
|
|
|
1,073
|
|
|
333
|
|
|||
Construction & land development
|
533
|
|
|
20
|
|
|
80
|
|
|||
Commercial real estate
|
1,562
|
|
|
1,093
|
|
|
413
|
|
|||
Commercial-based loans
|
13,250
|
|
|
12,551
|
|
|
7,242
|
|
|||
Residential construction
|
—
|
|
|
—
|
|
|
333
|
|
|||
Residential first mortgage
|
953
|
|
|
1,090
|
|
|
899
|
|
|||
Residential junior mortgage
|
566
|
|
|
480
|
|
|
250
|
|
|||
Residential real estate
|
1,519
|
|
|
1,570
|
|
|
1,482
|
|
|||
Retail & other
|
—
|
|
|
1
|
|
|
8
|
|
|||
Retail-based loans
|
1,519
|
|
|
1,571
|
|
|
1,490
|
|
|||
Total nonaccrual loans
|
14,769
|
|
|
14,122
|
|
|
8,732
|
|
|||
Accruing loans past due 90 days or more
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total nonperforming loans
|
$
|
14,769
|
|
|
$
|
14,122
|
|
|
$
|
8,732
|
|
OREO:
|
|
|
|
|
|
||||||
Commercial real estate owned
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
420
|
|
Bank property real estate owned
|
1,000
|
|
|
1,000
|
|
|
—
|
|
|||
Total OREO
|
1,000
|
|
|
1,000
|
|
|
420
|
|
|||
Total nonperforming assets
|
$
|
15,769
|
|
|
$
|
15,122
|
|
|
$
|
9,152
|
|
Performing troubled debt restructurings
|
$
|
—
|
|
|
$
|
452
|
|
|
$
|
466
|
|
Ratios:
|
|
|
|
|
|
||||||
Nonperforming loans to total loans
|
0.57
|
%
|
|
0.55
|
%
|
|
0.40
|
%
|
|||
Nonperforming assets to total loans plus OREO
|
0.60
|
%
|
|
0.59
|
%
|
|
0.42
|
%
|
|||
Nonperforming assets to total assets
|
0.42
|
%
|
|
0.42
|
%
|
|
0.30
|
%
|
|||
ACL-Loans to nonperforming loans
|
177.4
|
%
|
|
98.9
|
%
|
|
153.1
|
%
|
|
March 31, 2020
|
|
December 31, 2019
|
|
March 31, 2019
|
|||||||||||||||
(in thousands)
|
Amount
|
|
% of Total
|
|
Amount
|
|
% of Total
|
|
Amount
|
|
% of Total
|
|||||||||
Noninterest-bearing demand
|
$
|
791,563
|
|
|
26
|
%
|
|
$
|
819,055
|
|
|
28
|
%
|
|
$
|
696,111
|
|
|
27
|
%
|
Money market and interest-bearing demand
|
1,208,024
|
|
|
40
|
%
|
|
1,241,642
|
|
|
42
|
%
|
|
1,112,572
|
|
|
44
|
%
|
|||
Savings
|
361,829
|
|
|
12
|
%
|
|
343,199
|
|
|
11
|
%
|
|
306,342
|
|
|
12
|
%
|
|||
Time
|
662,050
|
|
|
22
|
%
|
|
550,557
|
|
|
19
|
%
|
|
423,461
|
|
|
17
|
%
|
|||
Total deposits
|
$
|
3,023,466
|
|
|
100
|
%
|
|
$
|
2,954,453
|
|
|
100
|
%
|
|
$
|
2,538,486
|
|
|
100
|
%
|
Brokered transaction accounts
|
$
|
36,331
|
|
|
1
|
%
|
|
$
|
48,497
|
|
|
1
|
%
|
|
$
|
47,544
|
|
|
2
|
%
|
Brokered and listed time deposits
|
245,252
|
|
|
8
|
%
|
|
111,694
|
|
|
4
|
%
|
|
19,399
|
|
|
1
|
%
|
|||
Total brokered deposits
|
$
|
281,583
|
|
|
9
|
%
|
|
$
|
160,191
|
|
|
5
|
%
|
|
$
|
66,943
|
|
|
3
|
%
|
Customer transaction accounts
|
$
|
2,325,085
|
|
|
77
|
%
|
|
$
|
2,355,399
|
|
|
80
|
%
|
|
$
|
2,067,481
|
|
|
81
|
%
|
Customer time deposits
|
416,798
|
|
|
14
|
%
|
|
438,863
|
|
|
15
|
%
|
|
404,062
|
|
|
16
|
%
|
|||
Total customer deposits (core)
|
$
|
2,741,883
|
|
|
91
|
%
|
|
$
|
2,794,262
|
|
|
95
|
%
|
|
$
|
2,471,543
|
|
|
97
|
%
|
(in thousands)
|
March 31, 2020
|
|
December 31, 2019
|
||||
Commitments to extend credit
|
$
|
755,822
|
|
|
$
|
773,555
|
|
Financial standby letters of credit
|
10,717
|
|
|
10,730
|
|
||
Performance standby letters of credit
|
8,270
|
|
|
8,469
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||
200 bps decrease in interest rates
|
(0.3
|
)%
|
|
(1.8
|
)%
|
100 bps decrease in interest rates
|
(0.5
|
)%
|
|
(1.0
|
)%
|
100 bps increase in interest rates
|
0.7
|
%
|
|
0.8
|
%
|
200 bps increase in interest rates
|
1.4
|
%
|
|
1.7
|
%
|
|
At or for the Three Months Ended
|
|
At or for the
Year Ended
|
||||
($ in thousands)
|
March 31, 2020
|
|
December 31, 2019
|
||||
Company Stock Repurchases: *
|
|
|
|
||||
Common stock repurchased during the period (dollars)
|
$
|
13,903
|
|
|
$
|
18,701
|
|
Common stock repurchased during the period (full shares)
|
206,833
|
|
|
310,781
|
|
||
Company Risk-Based Capital:
|
|
|
|
||||
Total risk-based capital
|
$
|
405,600
|
|
|
$
|
404,573
|
|
Tier 1 risk-based capital
|
378,421
|
|
|
378,608
|
|
||
Common equity Tier 1 capital
|
348,106
|
|
|
348,454
|
|
||
Total capital ratio
|
13.3
|
%
|
|
13.4
|
%
|
||
Tier 1 capital ratio
|
12.4
|
%
|
|
12.6
|
%
|
||
Common equity tier 1 capital ratio
|
11.4
|
%
|
|
11.6
|
%
|
||
Tier 1 leverage ratio
|
11.2
|
%
|
|
11.9
|
%
|
||
Bank Risk-Based Capital:
|
|
|
|
||||
Total risk-based capital
|
$
|
340,279
|
|
|
$
|
323,432
|
|
Tier 1 risk-based capital
|
323,500
|
|
|
309,460
|
|
||
Common equity Tier 1 capital
|
323,500
|
|
|
309,460
|
|
||
Total capital ratio
|
11.2
|
%
|
|
10.8
|
%
|
||
Tier 1 capital ratio
|
10.6
|
%
|
|
10.3
|
%
|
||
Common equity tier 1 capital ratio
|
10.6
|
%
|
|
10.3
|
%
|
||
Tier 1 leverage ratio
|
9.5
|
%
|
|
9.8
|
%
|
||
* Reflects common stock repurchased under board of director authorizations for the common stock repurchase program.
|
|
Total Number of
Shares Purchased (a)
|
|
Average Price
Paid per Share
|
|
Total Number of
Shares Purchased as
Part of Publicly
Announced Plans
or Programs
|
|
Maximum Number of
Shares that May Yet
Be Purchased Under
the Plans
or Programs (b)
|
|||||
|
(#)
|
|
($)
|
|
(#)
|
|
(#)
|
|||||
Period
|
|
|
|
|
|
|
|
|||||
January 1 – January 31, 2020
|
47,699
|
|
|
$
|
71.28
|
|
|
32,402
|
|
|
516,600
|
|
February 1 – February 29, 2020
|
89,724
|
|
|
$
|
71.65
|
|
|
87,225
|
|
|
429,400
|
|
March 1 – March 31, 2020
|
87,422
|
|
|
$
|
61.30
|
|
|
87,206
|
|
|
342,200
|
|
Total
|
224,845
|
|
|
$
|
67.55
|
|
|
206,833
|
|
|
342,200
|
|
(a)
|
During first quarter 2020, the Company repurchased 1,341 common shares for minimum tax withholding settlements on restricted stock and repurchased 16,671 common shares to satisfy the exercise price and / or tax withholding requirements of stock options, respectively. These purchases do not count against the maximum number of shares that may yet be purchased under the board of directors' authorization.
|
(b)
|
During first quarter 2020, Nicolet utilized $13.9 million to repurchase and cancel approximately 207,000 shares of common stock pursuant to our common stock repurchase program. At March 31, 2020, approximately $7.1 million remained available under this common stock repurchase program.
|
Exhibit
Number
|
|
Description
|
2.1
|
|
|
3.1
|
|
|
31.1
|
|
|
31.2
|
|
|
32.1
|
|
|
32.2
|
|
|
101
|
|
The following material from Nicolet’s Form 10-Q Report for the three months ended March 31, 2020, 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 Stockholders’ Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to Unaudited Consolidated Financial Statements.
|
|
NICOLET BANKSHARES, INC.
|
|
|
April 30, 2020
|
/s/ Robert B. Atwell
|
|
Robert B. Atwell
|
|
Chairman, President and Chief Executive Officer
|
|
|
April 30, 2020
|
/s/ Ann K. Lawson
|
|
Ann K. Lawson
|
|
Chief Financial Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q 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
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
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.
|
April 30, 2020
|
/s/ Robert B. Atwell
|
|
Robert B. Atwell
|
|
Chairman, President and Chief Executive Officer
|
|
(Principal Executive Officer)
|
1.
|
I have reviewed this quarterly report on Form 10-Q 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.
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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:
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a.
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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;
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b.
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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;
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c.
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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
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d.
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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
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5.
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The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
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a.
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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
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b.
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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.
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April 30, 2020
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/s/ Ann K. Lawson
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Ann K. Lawson
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Chief Financial Officer
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(Principal Financial and Accounting Officer)
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1.
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
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2.
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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April 30, 2020
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/s/ Robert B. Atwell
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Robert B. Atwell
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Chairman, President and Chief Executive Officer
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1.
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
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2.
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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April 30, 2020
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/s/ Ann K. Lawson
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Ann K. Lawson
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Chief Financial Officer
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