Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 30, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | NICOLET BANKSHARES INC | |
Entity Central Index Key | 0001174850 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding (in shares) | 9,366,490 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Emerging Growth Company | false | |
Entity Small Business Company | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Assets | |||
Cash and due from banks | $ 88,371 | $ 85,896 | |
Interest-earning deposits | 55,598 | 163,630 | |
Cash and cash equivalents | 143,969 | [1] | 249,526 |
Certificates of deposit in other banks | 5,395 | 993 | |
Securities available for sale (“AFS”), at fair value | 419,300 | 400,144 | |
Other investments | 20,697 | 17,997 | |
Loans held for sale | 10,564 | 1,639 | |
Loans | 2,242,931 | 2,166,181 | |
Allowance for loan losses (ALLL) | (13,620) | (13,153) | |
Loans, net | 2,229,311 | 2,153,028 | |
Premises and equipment, net | 47,680 | 48,173 | |
Bank owned life insurance (“BOLI”) | 71,796 | 66,310 | |
Goodwill and other intangibles, net | 121,371 | 124,307 | |
Accrued interest receivable and other assets | 35,588 | 34,418 | |
Total assets | 3,105,671 | 3,096,535 | |
Deposits | |||
Noninterest-bearing demand deposits | 782,968 | 753,065 | |
Interest-bearing deposits | 1,801,479 | 1,861,073 | |
Total deposits | 2,584,447 | 2,614,138 | |
Long-term borrowings | 57,495 | 77,305 | |
Accrued interest payable and other liabilities | 34,987 | 17,740 | |
Total liabilities | 2,676,929 | 2,709,183 | |
Stockholders' Equity Attributable to Parent [Abstract] | |||
Common stock | 94 | 95 | |
Additional paid-in capital | 236,534 | 247,790 | |
Retained earnings | 186,710 | 144,364 | |
Accumulated other comprehensive income (loss) | 4,676 | (5,640) | |
Total Nicolet Bankshares, Inc. stockholders’ equity | 428,014 | 386,609 | |
Noncontrolling interest | 728 | 743 | |
Total stockholders’ equity and noncontrolling interest | 428,742 | 387,352 | |
Total liabilities, noncontrolling interest and stockholders’ equity | $ 3,105,671 | $ 3,096,535 | |
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures [Abstract] | |||
Preferred shares authorized (no par value) (in shares) | 10,000,000 | 10,000,000 | |
Preferred shares issued and outstanding (in shares) | 0 | 0 | |
Common shares authorized (par value $0.01 per share) (in shares) | 30,000,000 | 30,000,000 | |
Common shares outstanding (in shares) | 9,363,407 | 9,495,265 | |
Common shares issued (in shares) | 9,387,096 | 9,524,777 | |
[1] | * Cash and cash equivalents include restricted cash of $6.3 million and $7.4 million at September 30, 2019 and 2018, respectively, for the reserve balance required with the Federal Reserve Bank. At September 30, 2019, cash and cash equivalents also includes restricted cash of $1.3 million pledged as collateral on interest rate swaps. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred shares, no par value (in dollars per share) | $ 0 | $ 0 |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest income: | ||||
Loans, including loan fees | $ 31,334 | $ 28,997 | $ 92,511 | $ 84,644 |
Investment securities: | ||||
Taxable | 1,904 | 1,564 | 5,578 | 4,503 |
Tax-exempt | 503 | 572 | 1,574 | 1,737 |
Other interest income | 926 | 747 | 2,733 | 2,326 |
Total interest income | 34,667 | 31,880 | 102,396 | 93,210 |
Interest expense: | ||||
Deposits | 4,596 | 4,055 | 14,103 | 11,012 |
Short-term borrowings | 0 | 0 | 0 | 8 |
Long-term borrowings | 881 | 883 | 2,684 | 2,571 |
Total interest expense | 5,477 | 4,938 | 16,787 | 13,591 |
Net interest income | 29,190 | 26,942 | 85,609 | 79,619 |
Provision for loan losses | 400 | 340 | 900 | 1,360 |
Net interest income after provision for loan losses | 28,790 | 26,602 | 84,709 | 78,259 |
Noninterest income: | ||||
Mortgage income, net | 3,700 | 1,902 | 6,962 | 4,510 |
BOLI income | 495 | 1,019 | 1,834 | 1,929 |
Asset gains (losses), net | 286 | 146 | 8,030 | 1,322 |
Other income | 1,166 | 1,484 | 4,274 | 4,243 |
Total noninterest income | 12,312 | 10,649 | 40,058 | 29,712 |
Noninterest expense: | ||||
Personnel | 12,914 | 12,983 | 40,809 | 38,149 |
Occupancy, equipment and office | 3,454 | 3,660 | 10,961 | 10,901 |
Business development and marketing | 1,428 | 1,334 | 4,288 | 4,139 |
Data processing | 2,515 | 2,375 | 7,220 | 7,094 |
Intangibles amortization | 914 | 1,054 | 2,936 | 3,336 |
Other expense | 1,662 | 1,638 | 5,159 | 4,518 |
Total noninterest expense | 22,887 | 23,044 | 71,373 | 68,137 |
Income before income tax expense | 18,215 | 14,207 | 53,394 | 39,834 |
Income tax expense | 4,603 | 3,268 | 10,788 | 9,431 |
Net income | 13,612 | 10,939 | 42,606 | 30,403 |
Less: Net income attributable to noncontrolling interest | 82 | 80 | 260 | 230 |
Net income attributable to Nicolet Bankshares, Inc. | $ 13,530 | $ 10,859 | $ 42,346 | $ 30,173 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 1.45 | $ 1.13 | $ 4.51 | $ 3.12 |
Diluted (in dollars per share) | $ 1.40 | $ 1.09 | $ 4.36 | $ 3.02 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 9,346,814 | 9,633,158 | 9,393,795 | 9,678,726 |
Diluted (in shares) | 9,696,850 | 9,949,295 | 9,706,795 | 10,004,316 |
Trust services fee income | ||||
Noninterest income: | ||||
Fees and commissions | $ 1,594 | $ 1,638 | $ 4,631 | $ 4,915 |
Brokerage fee income | ||||
Noninterest income: | ||||
Fees and commissions | 2,113 | 1,732 | 5,925 | 5,074 |
Service charges on deposit accounts | ||||
Noninterest income: | ||||
Fees and commissions | 1,223 | 1,247 | 3,587 | 3,637 |
Card interchange income | ||||
Noninterest income: | ||||
Fees and commissions | $ 1,735 | $ 1,481 | $ 4,815 | $ 4,082 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 13,612 | $ 10,939 | $ 42,606 | $ 30,403 |
Unrealized gains (losses) on securities AFS: | ||||
Net unrealized holding gains (losses) | 2,053 | (1,836) | 14,165 | (6,814) |
Net realized (gains) losses included in income | 0 | 0 | (32) | 0 |
Income tax (expense) benefit | (555) | 497 | (3,817) | 1,840 |
Total other comprehensive income (loss) | 1,498 | (1,339) | 10,316 | (4,974) |
Comprehensive income | $ 15,110 | $ 9,600 | $ 52,922 | $ 25,429 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non- controlling Interest |
Beginning Balance at Dec. 31, 2017 | $ 364,879 | $ 98 | $ 263,835 | $ 102,391 | $ (2,146) | $ 701 |
Comprehensive income: | ||||||
Net income | 30,403 | 30,173 | 230 | |||
Other comprehensive income (loss) | (4,974) | (4,974) | ||||
Stock-based compensation expense | 3,613 | 3,613 | ||||
Exercise of stock options, net | 1,224 | 1 | 1,223 | |||
Issuance of common stock | 167 | 167 | ||||
Purchase and retirement of common stock | (17,210) | (3) | (17,207) | |||
Distribution to noncontrolling interest | (199) | (199) | ||||
Ending Balance at Sep. 30, 2018 | 377,903 | 96 | 251,631 | 133,501 | (8,057) | 732 |
Beginning Balance at Jun. 30, 2018 | 371,285 | 96 | 254,564 | 122,642 | (6,718) | 701 |
Comprehensive income: | ||||||
Net income | 10,939 | 10,859 | 80 | |||
Other comprehensive income (loss) | (1,339) | (1,339) | ||||
Stock-based compensation expense | 1,299 | 1,299 | ||||
Exercise of stock options, net | 262 | 1 | 261 | |||
Issuance of common stock | 59 | 59 | ||||
Purchase and retirement of common stock | (4,553) | (1) | (4,552) | |||
Distribution to noncontrolling interest | (49) | (49) | ||||
Ending Balance at Sep. 30, 2018 | 377,903 | 96 | 251,631 | 133,501 | (8,057) | 732 |
Comprehensive income: | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 937 | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | Accounting Standards Update 2016-01 | (937) | |||||
Beginning Balance at Dec. 31, 2018 | 387,352 | 95 | 247,790 | 144,364 | (5,640) | 743 |
Comprehensive income: | ||||||
Net income | 42,606 | 42,346 | 260 | |||
Other comprehensive income (loss) | 10,316 | 10,316 | ||||
Stock-based compensation expense | 3,643 | 3,643 | ||||
Exercise of stock options, net | 4,382 | 2 | 4,380 | |||
Issuance of common stock | 449 | 449 | ||||
Purchase and retirement of common stock | (19,731) | (3) | (19,728) | |||
Distribution to noncontrolling interest | (275) | (275) | ||||
Ending Balance at Sep. 30, 2019 | 428,742 | 94 | 236,534 | 186,710 | 4,676 | 728 |
Beginning Balance at Jun. 30, 2019 | 412,148 | 94 | 234,963 | 173,180 | 3,178 | 733 |
Comprehensive income: | ||||||
Net income | 13,612 | 13,530 | 82 | |||
Other comprehensive income (loss) | 1,498 | 1,498 | ||||
Stock-based compensation expense | 1,144 | 1,144 | ||||
Exercise of stock options, net | 1,200 | 1,200 | ||||
Issuance of common stock | 166 | 166 | ||||
Purchase and retirement of common stock | (939) | 0 | (939) | |||
Distribution to noncontrolling interest | (87) | (87) | ||||
Ending Balance at Sep. 30, 2019 | $ 428,742 | $ 94 | $ 236,534 | $ 186,710 | $ 4,676 | $ 728 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | ||
Cash Flows From Operating Activities: | |||
Net income | $ 42,606 | $ 30,403 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization, and accretion | 5,260 | 4,643 | |
Provision for loan losses | 900 | 1,360 | |
Increase in cash surrender value of life insurance | (1,432) | (1,367) | |
Stock-based compensation expense | 3,643 | 3,613 | |
Asset (gains) losses, net | (8,030) | (1,322) | |
Gain on sale of loans held for sale, net | (7,042) | (4,026) | |
Proceeds from sale of loans held for sale | 255,775 | 184,314 | |
Origination of loans held for sale | (259,465) | (178,911) | |
Net change in: | |||
Accrued interest receivable and other assets | (5,020) | (4,952) | |
Accrued interest payable and other liabilities | 9,310 | 6,798 | |
Net cash provided by (used in) operating activities | 36,505 | 40,553 | |
Cash Flows From Investing Activities: | |||
Net (increase) decrease in loans | (74,131) | (50,703) | |
Net (increase) decrease in certificates of deposit in other banks | (4,402) | 751 | |
Purchases of securities AFS | (57,875) | (57,891) | |
Proceeds from sales of securities AFS | 13,240 | 0 | |
Proceeds from calls and maturities of securities AFS | 38,128 | 40,302 | |
Purchases of other investments | (1,941) | (634) | |
Proceeds from sales of other investments | 17,144 | 807 | |
Purchases of BOLI | (5,000) | 0 | |
Proceeds from redemption of BOLI | 1,348 | 561 | |
Net (increase) decrease in premises and equipment | (3,529) | (2,974) | |
Net (increase) decrease in other real estate and other assets | 15 | 1,486 | |
Net cash provided by (used in) investing activities | (77,003) | (68,295) | |
Cash Flows From Financing Activities: | |||
Net increase (decrease) in deposits | (29,691) | 51,171 | |
Repayments of long-term borrowings | (20,193) | (1,189) | |
Purchase and retirement of common stock | (19,731) | (17,210) | |
Proceeds from issuance of common stock | 449 | 167 | |
Proceeds from exercise of stock options | 4,382 | 1,224 | |
Distribution to noncontrolling interest | (275) | (199) | |
Net cash provided by (used in) financing activities | (65,059) | 33,964 | |
Net increase (decrease) in cash and cash equivalents | (105,557) | 6,222 | |
Cash and cash equivalents: | |||
Beginning | 249,526 | 154,933 | |
Ending | [1] | 143,969 | 161,155 |
Supplemental Disclosures of Cash Flow Information: | |||
Cash paid for interest | 16,682 | 13,294 | |
Cash paid for taxes | 11,690 | 9,325 | |
Transfer of loans and bank premises to other real estate owned | 1,025 | 587 | |
Capitalized mortgage servicing rights | 1,807 | $ 696 | |
Initial recognition of operating lease right of use asset | $ 5,403 | ||
[1] | * Cash and cash equivalents include restricted cash of $6.3 million and $7.4 million at September 30, 2019 and 2018, respectively, for the reserve balance required with the Federal Reserve Bank. At September 30, 2019, cash and cash equivalents also includes restricted cash of $1.3 million pledged as collateral on interest rate swaps. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Cash Flows [Abstract] | ||
Restricted cash and cash equivalents | $ 6.3 | $ 7.4 |
Restricted cash pledged as collateral on interest rate swaps | $ 1.3 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation General In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the consolidated balance sheets, statements of income, comprehensive income, changes in stockholders’ equity and cash flows of Nicolet Bankshares, Inc. (the “Company” or “Nicolet”) and its subsidiaries, for the periods presented, and all such adjustments are of a normal recurring nature. All material intercompany transactions and balances have been eliminated. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the entire year. These interim consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission and, therefore, certain information and footnote disclosures normally presented in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been omitted or abbreviated. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . Critical Accounting Policies and Estimates Preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future. Estimates are used in accounting for, among other items, the allowance for loan losses, valuation of loans in acquisition transactions, useful lives for depreciation and amortization, fair value of financial instruments, other-than-temporary impairment calculations, valuation of deferred tax assets, uncertain income tax positions and contingencies. Estimates that are particularly susceptible to significant change for the Company include the determination of the allowance for loan losses, the determination and assessment of deferred tax assets and liabilities, and the valuation of loans acquired in acquisition transactions; therefore, these are critical accounting policies. Factors that may cause sensitivity to the aforementioned estimates include but are not limited to: external market factors such as market interest rates and employment rates, changes to operating policies and procedures, changes in applicable banking or tax regulations, and changes to deferred tax estimates. Actual results may ultimately differ from estimates, although management does not generally believe such differences would materially affect the consolidated financial statements in any individual reporting period presented. There have been no material changes or developments with respect to the assumptions or methodologies that the Company uses when applying what management believes are critical accounting policies and developing critical accounting estimates as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . Recent Accounting Developments Adopted In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . ASU 2017-12 expands the activities that qualify for hedge accounting and simplifies the rules for reporting hedging transactions. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company adopted the updated guidance effective January 1, 2019 with no material impact on its consolidated financial statements, because the Company does not have any significant derivatives and does not currently apply hedge accounting to derivatives. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , with several subsequent updates. Topic 842 introduced a new accounting model for lessors and lessees. For lessees, almost all leases are now recognized on the balance sheet as a right-of-use ("ROU") asset and lease liability, unlike previous GAAP which required only capital leases to be recognized on the balance sheet. The accounting applied by lessors is largely unchanged from existing guidance. Topic 842 also requires additional disclosures concerning the amount, timing and uncertainty of cash flows arising from leases. The updated guidance is effective for annual reporting periods beginning after December 15, 2018, and provides a modified retrospective transition approach that allows lessees to recognize and measure leases on the balance sheet at the beginning of either the earliest period presented or as of the beginning of the period of adoption (the "effective date" method), with the option to elect certain practical expedients. Nicolet adopted the new guidance prospectively as of January 1, 2019, using the effective date method; thus, prior comparative periods have not been restated. Upon adoption, Nicolet recognized an ROU asset and lease liability of approximately $5 million . There was no impact to its consolidated statements of income or cash flows compared to the prior lease accounting model. The ROU asset and lease liability are recorded in other assets and other liabilities, respectively, in the consolidated balance sheets. As part of the adoption, Nicolet elected the package of practical expedients permitted under the transition guidance of the new standard which allowed the carry forward of the historical lease classification. Nicolet also elected the practical expedient to group lease and non-lease components as a single lease component; thus, the Company's leases include both lease (e.g., fixed payments including rent, taxes, and insurance costs) and non-lease components (e.g., common area or other maintenance costs). See Note 10 for the new disclosures required by Topic 842. Reclassifications Certain amounts in the 2018 consolidated financial statements have been reclassified to conform to the 2019 presentation. |
Pending Acquisition
Pending Acquisition | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Pending Acquisition | Pending Acquisition Nicolet entered into an Agreement and Plan of Merger with Choice Bancorp, Inc. ("Choice" (OTC Pink "CBKW")) on June 26, 2019 (the "Merger Agreement"), pursuant to which Choice will merge with and into Nicolet (the "Merger") to create the largest community bank in the Oshkosh, Wisconsin marketplace. Immediately following the Merger, Choice Bank, the wholly owned bank subsidiary of Choice, will merge with and into Nicolet's wholly owned bank subsidiary (the "Bank Merger"), with Nicolet National Bank as the surviving entity in the Bank Merger. The transaction will involve stock-for-stock consideration at a fixed exchange ratio, subject to cap and collar provisions provided for in the Merger Agreement. At September 30, 2019, Choice had total assets of $436 million , loans of $352 million , deposits of $306 million , and equity of $41 million . Choice assets represented approximately 14% of Nicolet assets at September 30, 2019. As of September 17, 2019, Nicolet received all regulatory approvals for the Merger and Bank Merger, and Choice shareholders approved the Merger on October 22, 2019. The merger is expected to close on November 8, 2019, pending satisfaction of customary closing conditions. |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Basic earnings per common share are calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share are calculated by dividing net income available to common shareholders by the weighted average number of shares adjusted for the dilutive effect of common stock awards (outstanding stock options and unvested restricted stock), if any. Presented below are the calculations for basic and diluted earnings per common share. Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except per share data) 2019 2018 2019 2018 Net income attributable to Nicolet Bankshares, Inc. $ 13,530 $ 10,859 $ 42,346 $ 30,173 Weighted average common shares outstanding 9,347 9,633 9,394 9,679 Effect of dilutive common stock awards 350 316 313 325 Diluted weighted average common shares outstanding 9,697 9,949 9,707 10,004 Basic earnings per common share* $ 1.45 $ 1.13 $ 4.51 $ 3.12 Diluted earnings per common share* $ 1.40 $ 1.09 $ 4.36 $ 3.02 *Cumulative quarterly per share performance may not equal annual per share totals due to the effects of the amount and timing of capital increases. When computing earnings per share for an interim period, the denominator is based on the weighted average shares outstanding during the interim period, and not on an annualized weighted average basis. Accordingly, the sum of the earnings per share data for the quarters will not necessarily equal the year to date earnings per share data. For the three and nine months ended September 30, 2019 , options to purchase less than 0.1 million shares are excluded from the calculation of diluted earnings per common share as the effect of their exercise would have been anti-dilutive. For the three and nine months ended September 30, 2018 , options to purchase approximately 0.1 million shares are excluded from the calculation of diluted earnings per common share as the effect of their exercise would have been anti-dilutive. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company may grant stock options and restricted stock under its stock-based compensation plans to certain officers, employees and directors. These plans are administered by a committee of the Board of Directors. In February 2019, with subsequent shareholder approval, the 2011 Long-Term Incentive Plan was amended to increase the shares reserved for potential stock-based awards from 1,500,000 shares to 3,000,000 shares. At September 30, 2019 , approximately 1.6 million shares were available for grant under these stock-based compensation plans. A Black-Scholes model is utilized to estimate the fair value of stock option grants, while the market price of the Company’s stock at the date of grant is used to estimate the fair value of restricted stock awards. The weighted average assumptions used in the Black-Scholes model for valuing stock option grants were as follows. Nine Months Ended September 30, 2019 2018 Dividend yield — % — % Expected volatility 25 % 25 % Risk-free interest rate 2.37 % 2.48 % Expected average life 7 years 7 years Weighted average per share fair value of options $ 19.23 $ 17.60 A summary of the Company’s stock option activity is summarized below. Stock Options Option Shares Outstanding Weighted Average Exercise Price Weighted Average Remaining Life (Years) Aggregate Intrinsic Value (in thousands) Outstanding - December 31, 2018 1,581,699 $ 40.77 Granted 15,000 59.55 Exercise of stock options * (185,328 ) 23.64 Forfeited (3,538 ) 27.43 Outstanding - September 30, 2019 1,407,833 $ 43.25 7.0 $ 32,829 Exercisable - September 30, 2019 644,033 $ 39.28 6.5 $ 17,577 * The terms of the stock option agreements permit having a number of shares of stock withheld, the fair market value of which as of the date of exercise is sufficient to satisfy the exercise price and/or tax withholding requirements. For the nine months ended September 30, 2019 , 70,068 such shares were surrendered to the Company. Intrinsic value represents the amount by which the fair market value of the underlying stock exceeds the exercise price of the stock options. The intrinsic value of options exercised for the nine months ended September 30, 2019 and 2018 was approximately $6.9 million and $1.8 million , respectively. A summary of the Company’s restricted stock activity is summarized below. Restricted Stock Weighted Average Grant Date Fair Value Restricted Shares Outstanding Outstanding - December 31, 2018 $ 39.37 29,512 Granted 61.96 4,257 Vested * 45.05 (9,672 ) Forfeited 16.50 (408 ) Outstanding - September 30, 2019 $ 41.50 23,689 * The terms of the restricted stock agreements permit the surrender of shares to the Company upon vesting in order to satisfy applicable tax withholding requirements at the minimum statutory withholding rate, and accordingly, 1,637 shares were surrendered during the nine months ended September 30, 2019 . The Company recognized approximately $3.4 million of stock-based compensation expense (included in personnel on the consolidated statements of income) for both the nine months ended September 30, 2019 and 2018 , associated with its common stock awards granted to officers and employees. In addition, during 2019 the Company recognized approximately $0.3 million of director expense (included in other expense on the consolidated statements of income) for a total restricted stock grant of 4,257 shares with immediate vesting to non-employee directors. During 2018 , the Company recognized approximately $0.2 million of director expense for a total restricted stock grant of 3,510 shares with immediate vesting to non-employee directors. As of September 30, 2019 , there was approximately $9.9 million of unrecognized compensation cost related to equity award grants. The cost is expected to be recognized over the remaining vesting period of approximately three years. The Company recognized a tax benefit of approximately $1.0 million and $0.2 million for the nine months ended September 30, 2019 and 2018 , respectively, for the tax impact of stock option exercises and vesting of restricted stock. |
Securities Available for Sale
Securities Available for Sale | 9 Months Ended |
Sep. 30, 2019 | |
Debt Securities, Available-for-sale [Abstract] | |
Securities Available for Sale | Securities Available for Sale Amortized cost and fair value of securities available for sale are summarized as follows. September 30, 2019 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government agency securities $ 16,697 $ — $ 207 $ 16,490 State, county and municipals 147,186 798 198 147,786 Mortgage-backed securities 169,262 3,267 652 171,877 Corporate debt securities 79,749 3,408 10 83,147 Total $ 412,894 $ 7,473 $ 1,067 $ 419,300 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 Total $ 407,871 $ 470 $ 8,197 $ 400,144 The following table presents gross unrealized losses and the related estimated fair value of investment securities available for sale, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position. September 30, 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 $ — $ — $ 16,490 $ 207 $ 16,490 $ 207 3 State, county and municipals 44,012 138 8,370 60 52,382 198 139 Mortgage-backed securities 38,515 127 40,783 525 79,298 652 150 Corporate debt securities 2,044 10 — — 2,044 10 1 Total $ 84,571 $ 275 $ 65,643 $ 792 $ 150,214 $ 1,067 293 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 Total $ 88,296 $ 907 $ 251,570 $ 7,290 $ 339,866 $ 8,197 680 As of September 30, 2019 , the Company does not consider its securities AFS with unrealized losses to be other-than-temporarily impaired, as the unrealized losses in each category have occurred as a result of changes in interest rates, market spreads and market conditions subsequent to purchase, not credit deterioration. The Company has the ability and intent to hold its securities to maturity. There were no other-than-temporary impairments charged to earnings during the nine months ended September 30, 2019 or 2018 . The amortized cost and fair value of securities AFS by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties; as this is particularly inherent in mortgage-backed securities, these securities are not included in the maturity categories below. September 30, 2019 (in thousands) Amortized Cost Fair Value Due in less than one year $ 18,762 $ 18,770 Due in one year through five years 184,588 187,185 Due after five years through ten years 33,877 34,314 Due after ten years 6,405 7,154 243,632 247,423 Mortgage-backed securities 169,262 171,877 Securities AFS $ 412,894 $ 419,300 Proceeds and realized gains / losses from the sale of securities AFS were as follows. Nine Months Ended September 30, (in thousands) 2019 2018 Gross gains $ 152 $ — Gross losses (120 ) — Gains (losses) on sales of securities AFS, net $ 32 $ — Proceeds from sales of securities AFS $ 13,240 $ — |
Loans, Allowance for Loan Losse
Loans, Allowance for Loan Losses, and Credit Quality | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Loans, Allowance for Loan Losses, and Credit Quality | Loans, Allowance for Loan Losses, and Credit Quality The loan composition is summarized as follows. September 30, 2019 December 31, 2018 (in thousands) Amount % of Total Amount % of Total Commercial & industrial $ 763,742 34 % $ 684,920 32 % Owner-occupied commercial real estate (“CRE”) 456,508 20 441,353 20 Agricultural (“AG”) production 36,050 2 35,625 2 AG real estate 58,591 3 53,444 2 CRE investment 336,442 15 343,652 16 Construction & land development 61,810 3 80,599 4 Residential construction 41,496 2 30,926 1 Residential first mortgage 343,400 15 357,841 17 Residential junior mortgage 116,179 5 111,328 5 Retail & other 28,713 1 26,493 1 Loans 2,242,931 100 % 2,166,181 100 % Less allowance for loan losses (“ALLL”) 13,620 13,153 Loans, net $ 2,229,311 $ 2,153,028 Allowance for loan losses to loans 0.61 % 0.61 % As a further breakdown, loans are summarized by originated and acquired as follows. September 30, 2019 December 31, 2018 (in thousands) Originated Amount % of Total Acquired Amount % of Total Originated Amount % of Total Acquired Amount % of Total Commercial & industrial $ 660,040 40 % $ 103,702 18 % $ 568,100 38 % $ 116,820 17 % Owner-occupied CRE 321,323 19 135,185 23 283,531 19 157,822 23 AG production 11,450 1 24,600 4 11,113 1 24,512 4 AG real estate 38,616 2 19,975 3 31,374 2 22,070 3 CRE investment 180,427 11 156,015 26 171,087 12 172,565 25 Construction & land development 52,806 3 9,004 2 66,478 4 14,121 2 Residential construction 41,246 3 250 — 30,926 2 — — Residential first mortgage 228,312 14 115,088 19 220,368 15 137,473 20 Residential junior mortgage 89,241 5 26,938 5 78,379 5 32,949 5 Retail & other 27,232 2 1,481 — 23,809 2 2,684 1 Loans 1,650,693 100 % 592,238 100 % 1,485,165 100 % 681,016 100 % Less ALLL 12,064 1,556 11,448 1,705 Loans, net $ 1,638,629 $ 590,682 $ 1,473,717 $ 679,311 ALLL to loans 0.73 % 0.26 % 0.77 % 0.25 % Loans as a percent of total loans 74 % 26 % 69 % 31 % Practically all of the Company’s loans, commitments, and letters of credit have been granted to customers in the Company’s market area. Although the Company has a diversified loan portfolio, the credit risk in the loan portfolio is largely influenced by general economic conditions and trends of the counties and markets in which the debtors operate, and the resulting impact on the operations of borrowers or on the value of underlying collateral, if any. A roll forward of the allowance for loan losses is summarized as follows. Nine Months Ended Year Ended (in thousands) September 30, 2019 September 30, 2018 December 31, 2018 Beginning balance $ 13,153 $ 12,653 $ 12,653 Provision for loan losses 900 1,360 1,600 Charge-offs (629 ) (1,110 ) (1,213 ) Recoveries 196 89 113 Net (charge-offs) recoveries (433 ) (1,021 ) (1,100 ) Ending balance $ 13,620 $ 12,992 $ 13,153 The following tables present the balance and activity in the ALLL by portfolio segment and the recorded investment in loans by portfolio segment. TOTAL – Nine Months Ended September 30, 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 356 (57 ) 85 46 32 (140 ) 357 (75 ) 71 225 900 Charge-offs (59 ) (13 ) — — — — (226 ) — (80 ) (251 ) (629 ) Recoveries 90 2 — — — — — 36 32 36 196 Net (charge-offs) recoveries 31 (11 ) — — — — (226 ) 36 (48 ) (215 ) (433 ) Ending balance $ 5,658 $ 2,779 $ 206 $ 347 $ 1,502 $ 370 $ 342 $ 1,607 $ 495 $ 314 $ 13,620 As % of ALLL 42 % 20 % 1 % 3 % 11 % 3 % 2 % 12 % 4 % 2 % 100 % ALLL: Individually evaluated $ 308 $ — $ 119 $ — $ — $ — $ — $ — $ — $ — $ 427 Collectively evaluated 5,350 2,779 87 347 1,502 370 342 1,607 495 314 13,193 Ending balance $ 5,658 $ 2,779 $ 206 $ 347 $ 1,502 $ 370 $ 342 $ 1,607 $ 495 $ 314 $ 13,620 Loans: Individually evaluated $ 2,143 $ 2,552 $ 1,251 $ 1,089 $ 2,483 $ 427 $ — $ 2,560 $ 221 $ 12 $ 12,738 Collectively evaluated 761,599 453,956 34,799 57,502 333,959 61,383 41,496 340,840 115,958 28,701 2,230,193 Total loans $ 763,742 $ 456,508 $ 36,050 $ 58,591 $ 336,442 $ 61,810 $ 41,496 $ 343,400 $ 116,179 $ 28,713 $ 2,242,931 Less ALLL 5,658 2,779 206 347 1,502 370 342 1,607 495 314 13,620 Net loans $ 758,084 $ 453,729 $ 35,844 $ 58,244 $ 334,940 $ 61,440 $ 41,154 $ 341,793 $ 115,684 $ 28,399 $ 2,229,311 As a further breakdown, the ALLL is summarized by originated and acquired as follows. Originated – Nine Months Ended September 30, 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 395 (17 ) 84 45 68 (111 ) 323 (42 ) 22 227 994 Charge-offs (59 ) (13 ) — — — — (226 ) — (20 ) (251 ) (569 ) Recoveries 90 2 — — — — — 36 27 36 191 Net (charge-offs) recoveries 31 (11 ) — — — — (226 ) 36 7 (215 ) (378 ) Ending balance $ 5,109 $ 2,411 $ 194 $ 300 $ 1,298 $ 320 $ 308 $ 1,394 $ 437 $ 293 $ 12,064 As % of ALLL 42 % 20 % 1 % 2 % 11 % 3 % 3 % 12 % 4 % 2 % 100 % ALLL: Individually evaluated $ 308 $ — $ 119 $ — $ — $ — $ — $ — $ — $ — $ 427 Collectively evaluated 4,801 2,411 75 300 1,298 320 308 1,394 437 293 11,637 Ending balance $ 5,109 $ 2,411 $ 194 $ 300 $ 1,298 $ 320 $ 308 $ 1,394 $ 437 $ 293 $ 12,064 Loans: Individually evaluated $ 722 $ 1,792 $ 1,095 $ 878 $ — $ — $ — $ — $ — $ — $ 4,487 Collectively evaluated 659,318 319,531 10,355 37,738 180,427 52,806 41,246 228,312 89,241 27,232 1,646,206 Total loans $ 660,040 $ 321,323 $ 11,450 $ 38,616 $ 180,427 $ 52,806 $ 41,246 $ 228,312 $ 89,241 $ 27,232 $ 1,650,693 Less ALLL 5,109 2,411 194 300 1,298 320 308 1,394 437 293 12,064 Net loans $ 654,931 $ 318,912 $ 11,256 $ 38,316 $ 179,129 $ 52,486 $ 40,938 $ 226,918 $ 88,804 $ 26,939 $ 1,638,629 Acquired – Nine Months Ended September 30, 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 (39 ) (40 ) 1 1 (36 ) (29 ) 34 (33 ) 49 (2 ) (94 ) Charge-offs — — — — — — — — (60 ) — (60 ) Recoveries — — — — — — — — 5 — 5 Net (charge-offs) recoveries — — — — — — — — (55 ) — (55 ) Ending balance $ 549 $ 368 $ 12 $ 47 $ 204 $ 50 $ 34 $ 213 $ 58 $ 21 $ 1,556 As % of ALLL 35 % 24 % 1 % 3 % 13 % 3 % 2 % 14 % 4 % 1 % 100 % ALLL: Individually evaluated $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated 549 368 12 47 204 50 34 213 58 21 1,556 Ending balance $ 549 $ 368 $ 12 $ 47 $ 204 $ 50 $ 34 $ 213 $ 58 $ 21 $ 1,556 Loans: Individually evaluated $ 1,421 $ 760 $ 156 $ 211 $ 2,483 $ 427 $ — $ 2,560 $ 221 $ 12 $ 8,251 Collectively evaluated 102,281 134,425 24,444 19,764 153,532 8,577 250 112,528 26,717 1,469 583,987 Total loans $ 103,702 $ 135,185 $ 24,600 $ 19,975 $ 156,015 $ 9,004 $ 250 $ 115,088 $ 26,938 $ 1,481 $ 592,238 Less ALLL 549 368 12 47 204 50 34 213 58 21 1,556 Net loans $ 103,153 $ 134,817 $ 24,588 $ 19,928 $ 155,811 $ 8,954 $ 216 $ 114,875 $ 26,880 $ 1,460 $ 590,682 For comparison purposes, the following tables present the balance and activity in the ALLL by portfolio segment and the recorded investment in loans by portfolio segment for the prior year-end period. 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) recoveries (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 As a further breakdown, the ALLL is summarized by originated and acquired as follows. 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) recoveries (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) recoveries 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 The following table presents nonaccrual loans by portfolio segment in total and then as a further breakdown by originated or acquired. Total Nonaccrual Loans (in thousands) September 30, 2019 % of Total December 31, 2018 % of Total Commercial & industrial $ 2,279 25 % $ 2,816 52 % Owner-occupied CRE 2,302 25 673 12 AG production 1,251 14 — — AG real estate 846 9 164 3 CRE investment 1,111 12 210 4 Construction & land development — — 80 1 Residential construction — — 1 — Residential first mortgage 865 9 1,265 23 Residential junior mortgage 576 6 262 5 Retail & other 8 — — — Nonaccrual loans $ 9,238 100 % $ 5,471 100 % Percent of total loans 0.4 % 0.2 % September 30, 2019 December 31, 2018 (in thousands) Originated Amount % of Total Acquired Amount % of Total Originated Amount % of Total Acquired Amount % of Total Commercial & industrial $ 833 16 % $ 1,446 35 % $ 352 25 % $ 2,464 61 % Owner-occupied CRE 1,792 35 510 12 362 26 311 8 AG production 1,095 22 156 4 — — — — AG real estate 635 13 211 5 — — 164 4 CRE investment — — 1,111 27 — — 210 5 Construction & land development — — — — — — 80 2 Residential construction — — — — 1 — — — Residential first mortgage 458 9 407 10 629 45 636 15 Residential junior mortgage 263 5 313 7 65 4 197 5 Retail & other — — 8 — — — — — Nonaccrual loans $ 5,076 100 % $ 4,162 100 % $ 1,409 100 % $ 4,062 100 % Percent of nonaccrual loans 55 % 45 % 26 % 74 % The following tables present past due loans by portfolio segment. September 30, 2019 (in thousands) 30-89 Days Past Due (accruing) 90 Days & Over or nonaccrual Current Total Commercial & industrial $ 215 $ 2,279 $ 761,248 $ 763,742 Owner-occupied CRE — 2,302 454,206 456,508 AG production — 1,251 34,799 36,050 AG real estate — 846 57,745 58,591 CRE investment — 1,111 335,331 336,442 Construction & land development — — 61,810 61,810 Residential construction — — 41,496 41,496 Residential first mortgage 319 865 342,216 343,400 Residential junior mortgage 283 576 115,320 116,179 Retail & other 124 8 28,581 28,713 Total loans $ 941 $ 9,238 $ 2,232,752 $ 2,242,931 Percent of total loans — % 0.4 % 99.6 % 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 % A description of the loan risk categories used by the Company follows. Grades 1-4, Pass: Credits exhibit adequate cash flows, appropriate management and financial ratios within industry norms and/or are supported by sufficient collateral. Some credits in these rating categories may require a need for monitoring but elements of concern are not severe enough to warrant an elevated rating. Grade 5, Watch: Credits with this rating are adequately secured and performing but are being monitored due to the presence of various short-term weaknesses which may include unexpected, short-term adverse financial performance, managerial problems, potential impact of a decline in the entire industry or local economy and delinquency issues. Loans to individuals or loans supported by guarantors with marginal net worth or collateral may be included in this rating category. Grade 6, Special Mention: Credits with this rating have potential weaknesses that, without the Company’s attention and correction may result in deterioration of repayment prospects. These assets are considered Criticized Assets. Potential weaknesses may include adverse financial trends for the borrower or industry, repeated lack of compliance with Company requests, increasing debt to net worth, serious management conditions and decreasing cash flow. Grade 7, Substandard: Assets with this rating are characterized by the distinct possibility the Company will sustain some loss if deficiencies are not corrected. All foreclosures, liquidations, and nonaccrual loans are considered to be categorized in this rating, regardless of collateral sufficiency. Grade 8, Doubtful: Assets with this rating exhibit all the weaknesses as one rated Substandard with the added characteristic that such weaknesses make collection or liquidation in full highly questionable. Grade 9, Loss: Assets in this category are considered uncollectible. Pursuing any recovery or salvage value is impractical but does not preclude partial recovery in the future. The following tables present total loans by risk categories. September 30, 2019 (in thousands) Grades 1- 4 Grade 5 Grade 6 Grade 7 Grade 8 Grade 9 Total Commercial & industrial $ 725,484 $ 22,299 $ 2,076 $ 13,883 $ — $ — $ 763,742 Owner-occupied CRE 428,332 15,110 963 12,103 — — 456,508 AG production 27,350 4,044 1,669 2,987 — — 36,050 AG real estate 48,740 4,077 2,344 3,430 — — 58,591 CRE investment 332,078 2,345 908 1,111 — — 336,442 Construction & land development 61,794 — 16 — — — 61,810 Residential construction 41,496 — — — — — 41,496 Residential first mortgage 338,627 1,664 1,193 1,916 — — 343,400 Residential junior mortgage 115,595 — — 584 — — 116,179 Retail & other 28,705 — — 8 — — 28,713 Total loans $ 2,148,201 $ 49,539 $ 9,169 $ 36,022 $ — $ — $ 2,242,931 Percent of total 95.8 % 2.2 % 0.4 % 1.6 % — — 100.0 % December 31, 2018 (in thousands) Grades 1- 4 Grade 5 Grade 6 Grade 7 Grade 8 Grade 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 95.1 % 2.7 % 0.9 % 1.3 % — — 100.0 % The following tables present impaired loans. Total Impaired Loans – September 30, 2019 (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Commercial & industrial $ 2,143 $ 4,271 $ 308 $ 2,807 $ 739 Owner-occupied CRE 2,552 2,930 — 2,742 170 AG production 1,251 1,263 119 1,295 12 AG real estate 1,089 1,091 — 1,098 2 CRE investment 2,483 2,490 — 2,524 8 Construction & land development 427 427 — 480 — Residential construction — — — — — Residential first mortgage 2,560 2,785 — 2,611 97 Residential junior mortgage 221 231 — 225 2 Retail & other 12 15 — 12 3 Total $ 12,738 $ 15,503 $ 427 $ 13,794 $ 1,033 Originated impaired loans $ 4,487 $ 4,707 $ 427 $ 4,649 $ 176 Acquired impaired loans 8,251 10,796 — 9,145 857 Total $ 12,738 $ 15,503 $ 427 $ 13,794 $ 1,033 Total Impaired Loans – 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 Total purchased credit impaired loans (in aggregate since the Company’s 2013 acquisitions) were initially recorded at a fair value of $43.6 million on their respective acquisition dates, net of an initial $34.4 million nonaccretable mark and a zero accretable mark. At September 30, 2019 , $8.3 million of the $43.6 million remain in impaired loans. Nonaccretable discount on purchased credit impaired loans: Nine Months Ended Year Ended (in thousands) September 30, 2019 September 30, 2018 December 31, 2018 Balance at beginning of period $ 6,408 $ 9,471 $ 9,471 Accretion to loan interest income (3,293 ) (1,872 ) (1,976 ) Transferred to accretable — (513 ) (990 ) Disposals of loans (660 ) (97 ) (97 ) Balance at end of period $ 2,455 $ 6,989 $ 6,408 Troubled Debt Restructurings At September 30, 2019 , there were five loans classified as troubled debt restructurings with a current outstanding balance of $1.2 million (including performing TDRs of $0.5 million and the remainder on nonaccrual) and pre-modification balance of $1.4 million . In comparison, at December 31, 2018 , there were four loans classified as troubled debt restructurings with an outstanding balance of $0.6 million and pre-modification balance of $2.7 million . There were no loans classified as troubled debt restructurings during the previous twelve months that subsequently defaulted during the nine months ended September 30, 2019 . As of September 30, 2019 , there were no commitments to lend additional funds to debtors whose terms have been modified in troubled debt restructurings. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles and Mortgage Servicing Rights | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles and Mortgage Servicing Rights | Goodwill and Other Intangibles and Mortgage Servicing Rights Management periodically reviews the carrying value of its intangible assets to determine if any impairment has occurred, in which case an impairment charge would be recorded as an expense in the period of impairment, or whether changes in circumstances have occurred that would require a revision to the remaining useful life which would impact expense prospectively. In making such determination, management evaluates whether there are any adverse qualitative factors indicating that an impairment may exist, as well as the performance, on an undiscounted basis, of the underlying operations or assets which give rise to the intangible. The Company’s quarterly assessment indicated no impairment charge on goodwill, core deposit intangibles or customer list intangibles was required for the year ended December 31, 2018 or the nine months ended September 30, 2019 . A summary of goodwill and other intangibles was as follows. Nine Months Ended Year Ended (in thousands) September 30, 2019 December 31, 2018 Goodwill $ 107,366 $ 107,366 Core deposit intangibles 10,006 12,562 Customer list intangibles 3,999 4,379 Other intangibles 14,005 16,941 Goodwill and other intangibles, net $ 121,371 $ 124,307 Goodwill : Goodwill was $107.4 million at both September 30, 2019 and December 31, 2018 . Other intangible assets : Other intangible assets, consisting of core deposit intangibles and customer list intangibles, are amortized over their estimated finite lives. Nine Months Ended Year Ended (in thousands) September 30, 2019 December 31, 2018 Core deposit intangibles: Gross carrying amount $ 29,015 $ 29,015 Accumulated amortization (19,009 ) (16,453 ) Net book value $ 10,006 $ 12,562 Additions during the period $ — $ — Amortization during the period $ 2,556 $ 3,915 Customer list intangibles: Gross carrying amount $ 5,523 $ 5,523 Accumulated amortization (1,524 ) (1,144 ) Net book value $ 3,999 $ 4,379 Additions during the period $ — $ 290 Amortization during the period $ 380 $ 474 Mortgage servicing rights : Mortgage servicing rights are amortized in proportion to and over the period of estimated net servicing income, and assessed for impairment at each reporting date, with the amortization recorded in mortgage income, net, in the consolidated statements of income. Mortgage servicing rights are carried at the lower of the initial capitalized amount, net of accumulated amortization, or estimated fair value, and are included in other assets in the consolidated balance sheets. A summary of the changes in the mortgage servicing rights asset was as follows. Nine Months Ended Year Ended (in thousands) September 30, 2019 December 31, 2018 Mortgage servicing rights ("MSR") asset: MSR asset at beginning of year $ 3,749 $ 3,187 Capitalized MSR 1,807 1,203 Amortization during the period (611 ) (641 ) MSR asset at end of period $ 4,945 $ 3,749 Fair value of MSR asset at end of period $ 6,960 $ 6,347 Residential mortgage loans serviced for others $ 721,569 $ 603,446 Net book value of MSR asset to loans serviced for others 0.69 % 0.62 % The Company periodically evaluates its mortgage servicing rights asset for impairment. At each reporting date, impairment is assessed based on estimated fair value using estimated prepayment speeds of the underlying mortgage loans serviced and stratifications based on the risk characteristics of the underlying loans (predominantly loan type and note interest rate). No valuation allowance or impairment charge was recorded for the year ended December 31, 2018 or the nine months ended September 30, 2019 . See Note 9 for additional information on the fair value of the MSR asset. The following table shows the estimated future amortization expense for amortizing intangible assets and the MSR asset. The projections are based on existing asset balances, the current interest rate environment and prepayment speeds as of September 30, 2019 . The actual amortization expense the Company recognizes in any given period may be significantly different depending upon acquisition or sale activities, changes in interest rates, prepayment speeds, market conditions, regulatory requirements and events or circumstances that indicate the carrying amount of an asset may not be recoverable. (in thousands) Core deposit intangibles Customer list intangibles MSR asset Year ending December 31, 2019 (remaining three months) $ 781 $ 127 $ 224 2020 2,657 507 879 2021 2,167 507 730 2022 1,735 507 730 2023 1,273 483 658 2024 841 449 400 Thereafter 552 1,419 1,324 Total $ 10,006 $ 3,999 $ 4,945 |
Short and Long-Term Borrowings
Short and Long-Term Borrowings | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Short and Long-Term Borrowings | Short and Long-Term Borrowings Short-Term Borrowings: The Company did not have any short-term borrowings (borrowing with an original maturity of one year or less) outstanding at September 30, 2019 or December 31, 2018 . Long-Term Borrowings: The components of long-term borrowings (borrowing with an original maturity greater than one year) were as follows. (in thousands) September 30, 2019 December 31, 2018 FHLB advances $ 15,056 $ 35,252 Junior subordinated debentures 30,455 30,096 Subordinated notes 11,984 11,957 Total long-term borrowings $ 57,495 $ 77,305 Percent of fixed rate long-term borrowings 58 % 69 % Percent of floating rate long-term borrowings 42 % 31 % FHLB Advances : The FHLB advances bear fixed rates, require interest-only monthly payments, and have maturity dates through 2022. The weighted average rate of the FHLB advances was 1.95% at September 30, 2019 and 1.72% at December 31, 2018 . During third quarter 2019, the Company repaid a $20 million puttable FHLB advance. Junior Subordinated Debentures : The following table shows the breakdown of junior subordinated debentures. Interest on all debentures is current. Any applicable discounts (initially recorded to carry an acquired debenture at its then estimated fair market value) are being accreted to interest expense over the remaining life of the debentures. All the debentures below are currently callable and may be redeemed in part or in full at par plus any accrued but unpaid interest. At September 30, 2019 and December 31, 2018 , $29.3 million and $28.9 million , respectively, qualify as Tier 1 capital. Junior Subordinated Debentures 9/30/2019 9/30/2019 12/31/18 (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 (3,222 ) 7,088 6,939 2006 Baylake Corp. (3) 9/30/2036 16,598 (3,942 ) 12,656 12,478 2004 First Menasha Bancshares, Inc. (4) 3/17/2034 5,155 (630 ) 4,525 4,493 Total $ 38,249 $ (7,794 ) $ 30,455 $ 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 3.55% and 4.22% as of September 30, 2019 and December 31, 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 3.45% and 4.15% as of September 30, 2019 and December 31, 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 rates were 4.93% and 5.58% as of September 30, 2019 and December 31, 2018 , respectively. Subordinated Notes : In 2015, the Company placed an aggregate of $12 million in subordinated Notes in private placements with certain accredited investors. All Notes were issued with 10 -year maturities, have a fixed annual interest rate of 5% payable quarterly, are callable on or after the fifth anniversary of their respective issuances dates, and qualify for Tier 2 capital for regulatory purposes. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value represents the estimated price at which an orderly transaction to sell an asset or transfer a liability would take place between market participants at the measurement date under current market conditions (i.e., an exit price concept), and is a market-based measurement versus an entity-specific measurement. The Company records and/or discloses financial instruments on a fair value basis. These financial assets and financial liabilities are measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the observability of the assumptions used to determine fair value. These levels are: • 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 instances where the fair value measurement is based on inputs from different levels, the level within which the entire fair value measurement will be categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. This assessment of the significance of an input requires management judgment. Recurring basis fair value measurements: The following table presents the balances of assets and liabilities measured at fair value on a recurring basis for the periods presented. (in thousands) Fair Value Measurements Using Measured at Fair Value on a Recurring Basis: Total Level 1 Level 2 Level 3 September 30, 2019 U.S. government agency securities $ 16,490 $ — $ 16,490 $ — State, county and municipals 147,786 — 147,786 — Mortgage-backed securities 171,877 — 171,877 — Corporate debt securities 83,147 — 80,317 2,830 Securities AFS $ 419,300 $ — $ 416,470 $ 2,830 Other investments (equity securities) $ 4,080 $ 4,080 $ — $ — 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 $ — $ — The following is a description of the valuation methodologies used by the Company for the securities AFS and equity securities measured at fair value on a recurring basis, noted in the tables above. Where quoted market prices on securities exchanges are available, the investments are classified as Level 1. Level 1 investments primarily include exchange-traded equity securities. If quoted market prices are not available, fair value is generally determined using prices obtained from independent pricing vendors who use pricing models (with typical inputs including benchmark yields, reported trades for similar securities, issuer spreads or relationship to other benchmark quoted securities), or discounted cash flows, and are classified as Level 2. Examples of these investments include U.S. government agency securities, mortgage-backed securities, obligations of state, county and municipals, and certain corporate debt securities. Finally, in certain cases where there is limited activity or less transparency around inputs to the estimated fair value, investments are classified within Level 3 of the hierarchy. Examples of these include private municipal bonds and corporate debt securities, which include trust preferred security investments. At September 30, 2019 and December 31, 2018 , it was determined that carrying value was the best approximation of fair value for these Level 3 securities, based primarily on the internal analysis on these securities. The following table presents the changes in the Level 3 securities AFS measured at fair value on a recurring basis. (in thousands) Nine Months Ended Year Ended Level 3 Fair Value Measurements: September 30, 2019 December 31, 2018 Balance at beginning of year $ 8,490 $ 9,151 Paydowns/Sales/Settlements (5,660 ) (661 ) Balance at end of period $ 2,830 $ 8,490 Nonrecurring basis fair value measurements: The following table presents the Company’s assets measured at fair value on a nonrecurring basis, aggregated by level in the fair value hierarchy within which those measurements fall. (in thousands) Fair Value Measurements Using Measured at Fair Value on a Nonrecurring Basis: Total Level 1 Level 2 Level 3 September 30, 2019 Impaired loans $ 12,311 $ — $ — $ 12,311 Other real estate owned (“OREO”) 1,325 — — 1,325 MSR asset 6,960 — — 6,960 December 31, 2018 Impaired loans $ 9,939 $ — $ — $ 9,939 OREO 420 — — 420 MSR asset 6,347 — — 6,347 The following is a description of the valuation methodologies used by the Company for the items noted in the table above. For individually evaluated impaired loans, the amount of impairment is based upon the present value of expected future cash flows discounted at the loan’s effective interest rate, the estimated fair value of the underlying collateral for collateral-dependent loans, or the estimated liquidity of the note. For OREO, the fair value is based upon the estimated fair value of the underlying collateral adjusted for the expected costs to sell. To estimate the fair value of the MSR asset, the underlying serviced loan pools are stratified by interest rate tranche and term of the loan, and a valuation model is used to calculate the present value of the expected future cash flows for each stratum. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as costs to service, a discount rate, ancillary income, default rates and losses, and prepayment speeds. Although some of these assumptions are based on observable market data, other assumptions are based on unobservable estimates of what market participants would use to measure fair value. Financial instruments: The carrying amounts and estimated fair values of the Company’s financial instruments are shown below. September 30, 2019 (in thousands) Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 143,969 $ 143,969 $ 143,969 $ — $ — Certificates of deposit in other banks 5,395 5,390 — 5,390 — Securities AFS 419,300 419,300 — 416,470 2,830 Other investments, including equity securities 20,697 20,697 4,080 13,259 3,358 Loans held for sale 10,564 10,710 — 10,710 — Loans, net 2,229,311 2,244,410 — — 2,244,410 BOLI 71,796 71,796 71,796 — — MSR asset 4,945 6,960 — — 6,960 Financial liabilities: Deposits $ 2,584,447 $ 2,584,662 $ — $ — $ 2,584,662 Long-term borrowings 57,495 56,679 — 15,135 41,544 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, including equity securities 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 The carrying value of certain assets and liabilities such as cash and cash equivalents, BOLI, and nonmaturing deposits, approximate their estimated fair value. For those financial instruments not previously disclosed, the following is a description of the valuation methodologies used. Certificates of deposits in other banks: Fair values are estimated using discounted cash flow analysis based on current interest rates being offered by instruments with similar terms and represents a Level 2 measurement. Other investments: The valuation methodologies utilized for exchange-traded equity securities are discussed under “Recurring basis fair value measurements” above. The carrying amount of Federal Reserve Bank and FHLB stock is a reasonably accepted fair value estimate given their restricted nature. Fair value is the redeemable (carrying) value based on the redemption provisions of the instruments which is considered a Level 2 measurement. The carrying amount of the remaining other investments (particularly common stocks of companies or other banks that are not publicly traded) approximates their fair value, determined primarily by analysis of company financial statements and recent capital issuances of the respective companies or banks, if any, and represents a Level 3 measurement. Loans held for sale: The fair value estimation process for the loans held for sale portfolio is segregated by loan type. The estimated fair value was based on what secondary markets are currently offering for portfolios with similar characteristics and represents a Level 2 measurement. Loans, net : For variable-rate loans that reprice frequently and with no significant change in credit risk or other optionality, fair values are based on carrying values. Fair values for all other loans are estimated by discounting contractual cash flows using estimated market discount rates, which reflect the credit and interest rate risk inherent in the loan. Collateral-dependent impaired loans are included in loans, net. The fair value of loans is considered to be a Level 3 measurement due to internally developed discounted cash flow measurements. Deposits : The fair value of deposits with no stated maturity (such as demand deposits, savings, interest and noninterest checking, and money market accounts) is, by definition, equal to the amount payable on demand at the reporting date. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market place on certificates of similar remaining maturities. Use of internal discounted cash flows provides a Level 3 fair value measurement. Long-term borrowings : The fair value of the FHLB advances is obtained from the FHLB which uses a discounted cash flow analysis based on current market rates of similar maturity debt securities and represents a Level 2 measurement. The fair values of the junior subordinated debentures and subordinated notes utilize a discounted cash flow analysis based on an estimate of current interest rates being offered by instruments with similar terms and credit quality. Since the market for these instruments is limited, the internal evaluation represents a Level 3 measurement. Lending-related commitments and derivative financial instruments : At September 30, 2019 and December 31, 2018 , the estimated fair value of letters of credit, interest rate lock commitments on residential mortgage loans, outstanding mandatory commitments to sell residential mortgage loans into the secondary market, and mirror interest rate swap agreements were not significant. Limitations : Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Fair value estimates may not be realizable in an immediate settlement of the instrument. In some instances, there are no quoted market prices for the Company’s various financial instruments, in which case fair values may be based on estimates using present value or other valuation techniques, or based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of the financial instruments, or other factors. Those techniques are significantly affected by the assumptions used, including the discount rate and estimate of future cash flows. Subsequent changes in assumptions could significantly affect the estimates. |
Operating Leases
Operating Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Operating Leases | Operating Leases As of January 1, 2019, the Company adopted ASU 2016-02 (Topic 842) on a prospective basis using the effective date method. The adoption of the new standard did not have a material impact on Nicolet's financial statements; however, additional disclosures have been added in accordance with the ASU. See Note 1 for additional information on this new accounting standard. The operating lease ROU asset represents the right to use an underlying asset during the lease term, while the operating lease liability represents the obligation to make lease payments arising from the lease. The ROU asset and lease liability are recognized at lease commencement based on the present value of the remaining lease payments, considering a discount rate that represents Nicolet's incremental borrowing rate. Operating lease expense is recognized on a straight-line basis over the lease term and is recognized in occupancy, equipment, and office on the consolidated statements of income. Nicolet leases space under non-cancelable operating lease agreements for certain bank and nonbank branch facilities with remaining lease terms of 2 to 7 years. Certain lease arrangements contain extension options which typically range from 5 to 10 years at the then fair market rental rates. The lease asset and liability considers renewal options when they are reasonably certain of being exercised. A summary of net lease cost and selected other information related to operating leases was as follows. Nine Months Ended ($ in thousands) September 30, 2019 Net lease cost: Operating lease cost $ 737 Variable lease cost 179 Net lease cost $ 916 Selected other operating lease information: Weighted average remaining lease term (years) 5 Weighted average discount rate 2.5 % The following table summarizes the maturity of remaining lease liabilities. (in thousands) Year ending December 31, 2019 (remaining three months) $ 951 2020 1,037 2021 911 2022 851 2023 607 2024 499 Thereafter 16 Total future minimum lease payments 4,872 Less: amount representing interest (122 ) Present value of net future minimum lease payments $ 4,750 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
General | General In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the consolidated balance sheets, statements of income, comprehensive income, changes in stockholders’ equity and cash flows of Nicolet Bankshares, Inc. (the “Company” or “Nicolet”) and its subsidiaries, for the periods presented, and all such adjustments are of a normal recurring nature. All material intercompany transactions and balances have been eliminated. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the entire year. These interim consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission and, therefore, certain information and footnote disclosures normally presented in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been omitted or abbreviated. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . |
Critical Accounting Policies and Estimates | Critical Accounting Policies and Estimates Preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future. Estimates are used in accounting for, among other items, the allowance for loan losses, valuation of loans in acquisition transactions, useful lives for depreciation and amortization, fair value of financial instruments, other-than-temporary impairment calculations, valuation of deferred tax assets, uncertain income tax positions and contingencies. Estimates that are particularly susceptible to significant change for the Company include the determination of the allowance for loan losses, the determination and assessment of deferred tax assets and liabilities, and the valuation of loans acquired in acquisition transactions; therefore, these are critical accounting policies. Factors that may cause sensitivity to the aforementioned estimates include but are not limited to: external market factors such as market interest rates and employment rates, changes to operating policies and procedures, changes in applicable banking or tax regulations, and changes to deferred tax estimates. Actual results may ultimately differ from estimates, although management does not generally believe such differences would materially affect the consolidated financial statements in any individual reporting period presented. There have been no material changes or developments with respect to the assumptions or methodologies that the Company uses when applying what management believes are critical accounting policies and developing critical accounting estimates as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . |
Recent Accounting Developments Adopted | Recent Accounting Developments Adopted In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . ASU 2017-12 expands the activities that qualify for hedge accounting and simplifies the rules for reporting hedging transactions. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company adopted the updated guidance effective January 1, 2019 with no material impact on its consolidated financial statements, because the Company does not have any significant derivatives and does not currently apply hedge accounting to derivatives. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , with several subsequent updates. Topic 842 introduced a new accounting model for lessors and lessees. For lessees, almost all leases are now recognized on the balance sheet as a right-of-use ("ROU") asset and lease liability, unlike previous GAAP which required only capital leases to be recognized on the balance sheet. The accounting applied by lessors is largely unchanged from existing guidance. Topic 842 also requires additional disclosures concerning the amount, timing and uncertainty of cash flows arising from leases. The updated guidance is effective for annual reporting periods beginning after December 15, 2018, and provides a modified retrospective transition approach that allows lessees to recognize and measure leases on the balance sheet at the beginning of either the earliest period presented or as of the beginning of the period of adoption (the "effective date" method), with the option to elect certain practical expedients. Nicolet adopted the new guidance prospectively as of January 1, 2019, using the effective date method; thus, prior comparative periods have not been restated. Upon adoption, Nicolet recognized an ROU asset and lease liability of approximately $5 million . There was no impact to its consolidated statements of income or cash flows compared to the prior lease accounting model. The ROU asset and lease liability are recorded in other assets and other liabilities, respectively, in the consolidated balance sheets. As part of the adoption, Nicolet elected the package of practical expedients permitted under the transition guidance of the new standard which allowed the carry forward of the historical lease classification. Nicolet also elected the practical expedient to group lease and non-lease components as a single lease component; thus, the Company's leases include both lease (e.g., fixed payments including rent, taxes, and insurance costs) and non-lease components (e.g., common area or other maintenance costs). See Note 10 for the new disclosures required by Topic 842. |
Reclassifications | Reclassifications Certain amounts in the 2018 consolidated financial statements have been reclassified to conform to the 2019 presentation. |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per common share | Presented below are the calculations for basic and diluted earnings per common share. Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except per share data) 2019 2018 2019 2018 Net income attributable to Nicolet Bankshares, Inc. $ 13,530 $ 10,859 $ 42,346 $ 30,173 Weighted average common shares outstanding 9,347 9,633 9,394 9,679 Effect of dilutive common stock awards 350 316 313 325 Diluted weighted average common shares outstanding 9,697 9,949 9,707 10,004 Basic earnings per common share* $ 1.45 $ 1.13 $ 4.51 $ 3.12 Diluted earnings per common share* $ 1.40 $ 1.09 $ 4.36 $ 3.02 *Cumulative quarterly per share performance may not equal annual per share totals due to the effects of the amount and timing of capital increases. When computing earnings per share for an interim period, the denominator is based on the weighted average shares outstanding during the interim period, and not on an annualized weighted average basis. Accordingly, the sum of the earnings per share data for the quarters will not necessarily equal the year to date earnings per share data. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of weighted average assumption for stock option | The weighted average assumptions used in the Black-Scholes model for valuing stock option grants were as follows. Nine Months Ended September 30, 2019 2018 Dividend yield — % — % Expected volatility 25 % 25 % Risk-free interest rate 2.37 % 2.48 % Expected average life 7 years 7 years Weighted average per share fair value of options $ 19.23 $ 17.60 |
Schedule of stock options outstanding | A summary of the Company’s stock option activity is summarized below. Stock Options Option Shares Outstanding Weighted Average Exercise Price Weighted Average Remaining Life (Years) Aggregate Intrinsic Value (in thousands) Outstanding - December 31, 2018 1,581,699 $ 40.77 Granted 15,000 59.55 Exercise of stock options * (185,328 ) 23.64 Forfeited (3,538 ) 27.43 Outstanding - September 30, 2019 1,407,833 $ 43.25 7.0 $ 32,829 Exercisable - September 30, 2019 644,033 $ 39.28 6.5 $ 17,577 * The terms of the stock option agreements permit having a number of shares of stock withheld, the fair market value of which as of the date of exercise is sufficient to satisfy the exercise price and/or tax withholding requirements. For the nine months ended September 30, 2019 , 70,068 such shares were surrendered to the Company. |
Schedule of restricted stock awards | A summary of the Company’s restricted stock activity is summarized below. Restricted Stock Weighted Average Grant Date Fair Value Restricted Shares Outstanding Outstanding - December 31, 2018 $ 39.37 29,512 Granted 61.96 4,257 Vested * 45.05 (9,672 ) Forfeited 16.50 (408 ) Outstanding - September 30, 2019 $ 41.50 23,689 * The terms of the restricted stock agreements permit the surrender of shares to the Company upon vesting in order to satisfy applicable tax withholding requirements at the minimum statutory withholding rate, and accordingly, 1,637 shares were surrendered during the nine months ended September 30, 2019 . |
Securities Available for Sale (
Securities Available for Sale (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Securities, Available-for-sale [Abstract] | |
Schedule of amortized cost and fair value of securities available for sale | Amortized cost and fair value of securities available for sale are summarized as follows. September 30, 2019 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government agency securities $ 16,697 $ — $ 207 $ 16,490 State, county and municipals 147,186 798 198 147,786 Mortgage-backed securities 169,262 3,267 652 171,877 Corporate debt securities 79,749 3,408 10 83,147 Total $ 412,894 $ 7,473 $ 1,067 $ 419,300 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 Total $ 407,871 $ 470 $ 8,197 $ 400,144 |
Schedule of unrealized losses and fair value | The following table presents gross unrealized losses and the related estimated fair value of investment securities available for sale, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position. September 30, 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 $ — $ — $ 16,490 $ 207 $ 16,490 $ 207 3 State, county and municipals 44,012 138 8,370 60 52,382 198 139 Mortgage-backed securities 38,515 127 40,783 525 79,298 652 150 Corporate debt securities 2,044 10 — — 2,044 10 1 Total $ 84,571 $ 275 $ 65,643 $ 792 $ 150,214 $ 1,067 293 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 Total $ 88,296 $ 907 $ 251,570 $ 7,290 $ 339,866 $ 8,197 680 |
Schedule of amortized cost and fair value classified by contractual maturities | The amortized cost and fair value of securities AFS by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties; as this is particularly inherent in mortgage-backed securities, these securities are not included in the maturity categories below. September 30, 2019 (in thousands) Amortized Cost Fair Value Due in less than one year $ 18,762 $ 18,770 Due in one year through five years 184,588 187,185 Due after five years through ten years 33,877 34,314 Due after ten years 6,405 7,154 243,632 247,423 Mortgage-backed securities 169,262 171,877 Securities AFS $ 412,894 $ 419,300 |
Schedule of proceeds from sale of securities AFS | Proceeds and realized gains / losses from the sale of securities AFS were as follows. Nine Months Ended September 30, (in thousands) 2019 2018 Gross gains $ 152 $ — Gross losses (120 ) — Gains (losses) on sales of securities AFS, net $ 32 $ — Proceeds from sales of securities AFS $ 13,240 $ — |
Loans, Allowance for Loan Los_2
Loans, Allowance for Loan Losses, and Credit Quality (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Schedule of loan composition and further breakdown summarized by originated and acquired | The loan composition is summarized as follows. September 30, 2019 December 31, 2018 (in thousands) Amount % of Total Amount % of Total Commercial & industrial $ 763,742 34 % $ 684,920 32 % Owner-occupied commercial real estate (“CRE”) 456,508 20 441,353 20 Agricultural (“AG”) production 36,050 2 35,625 2 AG real estate 58,591 3 53,444 2 CRE investment 336,442 15 343,652 16 Construction & land development 61,810 3 80,599 4 Residential construction 41,496 2 30,926 1 Residential first mortgage 343,400 15 357,841 17 Residential junior mortgage 116,179 5 111,328 5 Retail & other 28,713 1 26,493 1 Loans 2,242,931 100 % 2,166,181 100 % Less allowance for loan losses (“ALLL”) 13,620 13,153 Loans, net $ 2,229,311 $ 2,153,028 Allowance for loan losses to loans 0.61 % 0.61 % As a further breakdown, loans are summarized by originated and acquired as follows. September 30, 2019 December 31, 2018 (in thousands) Originated Amount % of Total Acquired Amount % of Total Originated Amount % of Total Acquired Amount % of Total Commercial & industrial $ 660,040 40 % $ 103,702 18 % $ 568,100 38 % $ 116,820 17 % Owner-occupied CRE 321,323 19 135,185 23 283,531 19 157,822 23 AG production 11,450 1 24,600 4 11,113 1 24,512 4 AG real estate 38,616 2 19,975 3 31,374 2 22,070 3 CRE investment 180,427 11 156,015 26 171,087 12 172,565 25 Construction & land development 52,806 3 9,004 2 66,478 4 14,121 2 Residential construction 41,246 3 250 — 30,926 2 — — Residential first mortgage 228,312 14 115,088 19 220,368 15 137,473 20 Residential junior mortgage 89,241 5 26,938 5 78,379 5 32,949 5 Retail & other 27,232 2 1,481 — 23,809 2 2,684 1 Loans 1,650,693 100 % 592,238 100 % 1,485,165 100 % 681,016 100 % Less ALLL 12,064 1,556 11,448 1,705 Loans, net $ 1,638,629 $ 590,682 $ 1,473,717 $ 679,311 ALLL to loans 0.73 % 0.26 % 0.77 % 0.25 % Loans as a percent of total loans 74 % 26 % 69 % 31 % |
Schedule of roll forward of allowance for loan losses | A roll forward of the allowance for loan losses is summarized as follows. Nine Months Ended Year Ended (in thousands) September 30, 2019 September 30, 2018 December 31, 2018 Beginning balance $ 13,153 $ 12,653 $ 12,653 Provision for loan losses 900 1,360 1,600 Charge-offs (629 ) (1,110 ) (1,213 ) Recoveries 196 89 113 Net (charge-offs) recoveries (433 ) (1,021 ) (1,100 ) Ending balance $ 13,620 $ 12,992 $ 13,153 |
Schedule of changes in ALLL by portfolio segment and further breakdown summarized by originated and acquired | For comparison purposes, the following tables present the balance and activity in the ALLL by portfolio segment and the recorded investment in loans by portfolio segment for the prior year-end period. 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) recoveries (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 The following tables present the balance and activity in the ALLL by portfolio segment and the recorded investment in loans by portfolio segment. TOTAL – Nine Months Ended September 30, 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 356 (57 ) 85 46 32 (140 ) 357 (75 ) 71 225 900 Charge-offs (59 ) (13 ) — — — — (226 ) — (80 ) (251 ) (629 ) Recoveries 90 2 — — — — — 36 32 36 196 Net (charge-offs) recoveries 31 (11 ) — — — — (226 ) 36 (48 ) (215 ) (433 ) Ending balance $ 5,658 $ 2,779 $ 206 $ 347 $ 1,502 $ 370 $ 342 $ 1,607 $ 495 $ 314 $ 13,620 As % of ALLL 42 % 20 % 1 % 3 % 11 % 3 % 2 % 12 % 4 % 2 % 100 % ALLL: Individually evaluated $ 308 $ — $ 119 $ — $ — $ — $ — $ — $ — $ — $ 427 Collectively evaluated 5,350 2,779 87 347 1,502 370 342 1,607 495 314 13,193 Ending balance $ 5,658 $ 2,779 $ 206 $ 347 $ 1,502 $ 370 $ 342 $ 1,607 $ 495 $ 314 $ 13,620 Loans: Individually evaluated $ 2,143 $ 2,552 $ 1,251 $ 1,089 $ 2,483 $ 427 $ — $ 2,560 $ 221 $ 12 $ 12,738 Collectively evaluated 761,599 453,956 34,799 57,502 333,959 61,383 41,496 340,840 115,958 28,701 2,230,193 Total loans $ 763,742 $ 456,508 $ 36,050 $ 58,591 $ 336,442 $ 61,810 $ 41,496 $ 343,400 $ 116,179 $ 28,713 $ 2,242,931 Less ALLL 5,658 2,779 206 347 1,502 370 342 1,607 495 314 13,620 Net loans $ 758,084 $ 453,729 $ 35,844 $ 58,244 $ 334,940 $ 61,440 $ 41,154 $ 341,793 $ 115,684 $ 28,399 $ 2,229,311 As a further breakdown, the ALLL is summarized by originated and acquired as follows. Originated – Nine Months Ended September 30, 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 395 (17 ) 84 45 68 (111 ) 323 (42 ) 22 227 994 Charge-offs (59 ) (13 ) — — — — (226 ) — (20 ) (251 ) (569 ) Recoveries 90 2 — — — — — 36 27 36 191 Net (charge-offs) recoveries 31 (11 ) — — — — (226 ) 36 7 (215 ) (378 ) Ending balance $ 5,109 $ 2,411 $ 194 $ 300 $ 1,298 $ 320 $ 308 $ 1,394 $ 437 $ 293 $ 12,064 As % of ALLL 42 % 20 % 1 % 2 % 11 % 3 % 3 % 12 % 4 % 2 % 100 % ALLL: Individually evaluated $ 308 $ — $ 119 $ — $ — $ — $ — $ — $ — $ — $ 427 Collectively evaluated 4,801 2,411 75 300 1,298 320 308 1,394 437 293 11,637 Ending balance $ 5,109 $ 2,411 $ 194 $ 300 $ 1,298 $ 320 $ 308 $ 1,394 $ 437 $ 293 $ 12,064 Loans: Individually evaluated $ 722 $ 1,792 $ 1,095 $ 878 $ — $ — $ — $ — $ — $ — $ 4,487 Collectively evaluated 659,318 319,531 10,355 37,738 180,427 52,806 41,246 228,312 89,241 27,232 1,646,206 Total loans $ 660,040 $ 321,323 $ 11,450 $ 38,616 $ 180,427 $ 52,806 $ 41,246 $ 228,312 $ 89,241 $ 27,232 $ 1,650,693 Less ALLL 5,109 2,411 194 300 1,298 320 308 1,394 437 293 12,064 Net loans $ 654,931 $ 318,912 $ 11,256 $ 38,316 $ 179,129 $ 52,486 $ 40,938 $ 226,918 $ 88,804 $ 26,939 $ 1,638,629 Acquired – Nine Months Ended September 30, 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 (39 ) (40 ) 1 1 (36 ) (29 ) 34 (33 ) 49 (2 ) (94 ) Charge-offs — — — — — — — — (60 ) — (60 ) Recoveries — — — — — — — — 5 — 5 Net (charge-offs) recoveries — — — — — — — — (55 ) — (55 ) Ending balance $ 549 $ 368 $ 12 $ 47 $ 204 $ 50 $ 34 $ 213 $ 58 $ 21 $ 1,556 As % of ALLL 35 % 24 % 1 % 3 % 13 % 3 % 2 % 14 % 4 % 1 % 100 % ALLL: Individually evaluated $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated 549 368 12 47 204 50 34 213 58 21 1,556 Ending balance $ 549 $ 368 $ 12 $ 47 $ 204 $ 50 $ 34 $ 213 $ 58 $ 21 $ 1,556 Loans: Individually evaluated $ 1,421 $ 760 $ 156 $ 211 $ 2,483 $ 427 $ — $ 2,560 $ 221 $ 12 $ 8,251 Collectively evaluated 102,281 134,425 24,444 19,764 153,532 8,577 250 112,528 26,717 1,469 583,987 Total loans $ 103,702 $ 135,185 $ 24,600 $ 19,975 $ 156,015 $ 9,004 $ 250 $ 115,088 $ 26,938 $ 1,481 $ 592,238 Less ALLL 549 368 12 47 204 50 34 213 58 21 1,556 Net loans $ 103,153 $ 134,817 $ 24,588 $ 19,928 $ 155,811 $ 8,954 $ 216 $ 114,875 $ 26,880 $ 1,460 $ 590,682 As a further breakdown, the ALLL is summarized by originated and acquired as follows. 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) recoveries (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) recoveries 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 |
Schedule of nonaccrual loans by portfolio segment and further breakdown summarized by originated and acquired | The following table presents nonaccrual loans by portfolio segment in total and then as a further breakdown by originated or acquired. Total Nonaccrual Loans (in thousands) September 30, 2019 % of Total December 31, 2018 % of Total Commercial & industrial $ 2,279 25 % $ 2,816 52 % Owner-occupied CRE 2,302 25 673 12 AG production 1,251 14 — — AG real estate 846 9 164 3 CRE investment 1,111 12 210 4 Construction & land development — — 80 1 Residential construction — — 1 — Residential first mortgage 865 9 1,265 23 Residential junior mortgage 576 6 262 5 Retail & other 8 — — — Nonaccrual loans $ 9,238 100 % $ 5,471 100 % Percent of total loans 0.4 % 0.2 % September 30, 2019 December 31, 2018 (in thousands) Originated Amount % of Total Acquired Amount % of Total Originated Amount % of Total Acquired Amount % of Total Commercial & industrial $ 833 16 % $ 1,446 35 % $ 352 25 % $ 2,464 61 % Owner-occupied CRE 1,792 35 510 12 362 26 311 8 AG production 1,095 22 156 4 — — — — AG real estate 635 13 211 5 — — 164 4 CRE investment — — 1,111 27 — — 210 5 Construction & land development — — — — — — 80 2 Residential construction — — — — 1 — — — Residential first mortgage 458 9 407 10 629 45 636 15 Residential junior mortgage 263 5 313 7 65 4 197 5 Retail & other — — 8 — — — — — Nonaccrual loans $ 5,076 100 % $ 4,162 100 % $ 1,409 100 % $ 4,062 100 % Percent of nonaccrual loans 55 % 45 % 26 % 74 % |
Schedule of past due loans by portfolio segment | The following tables present past due loans by portfolio segment. September 30, 2019 (in thousands) 30-89 Days Past Due (accruing) 90 Days & Over or nonaccrual Current Total Commercial & industrial $ 215 $ 2,279 $ 761,248 $ 763,742 Owner-occupied CRE — 2,302 454,206 456,508 AG production — 1,251 34,799 36,050 AG real estate — 846 57,745 58,591 CRE investment — 1,111 335,331 336,442 Construction & land development — — 61,810 61,810 Residential construction — — 41,496 41,496 Residential first mortgage 319 865 342,216 343,400 Residential junior mortgage 283 576 115,320 116,179 Retail & other 124 8 28,581 28,713 Total loans $ 941 $ 9,238 $ 2,232,752 $ 2,242,931 Percent of total loans — % 0.4 % 99.6 % 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 % |
Schedule of loans by loan grade | The following tables present total loans by risk categories. September 30, 2019 (in thousands) Grades 1- 4 Grade 5 Grade 6 Grade 7 Grade 8 Grade 9 Total Commercial & industrial $ 725,484 $ 22,299 $ 2,076 $ 13,883 $ — $ — $ 763,742 Owner-occupied CRE 428,332 15,110 963 12,103 — — 456,508 AG production 27,350 4,044 1,669 2,987 — — 36,050 AG real estate 48,740 4,077 2,344 3,430 — — 58,591 CRE investment 332,078 2,345 908 1,111 — — 336,442 Construction & land development 61,794 — 16 — — — 61,810 Residential construction 41,496 — — — — — 41,496 Residential first mortgage 338,627 1,664 1,193 1,916 — — 343,400 Residential junior mortgage 115,595 — — 584 — — 116,179 Retail & other 28,705 — — 8 — — 28,713 Total loans $ 2,148,201 $ 49,539 $ 9,169 $ 36,022 $ — $ — $ 2,242,931 Percent of total 95.8 % 2.2 % 0.4 % 1.6 % — — 100.0 % December 31, 2018 (in thousands) Grades 1- 4 Grade 5 Grade 6 Grade 7 Grade 8 Grade 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 95.1 % 2.7 % 0.9 % 1.3 % — — 100.0 % |
Schedule of impaired loans and further breakdown summarized by originated and acquired | The following tables present impaired loans. Total Impaired Loans – September 30, 2019 (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Commercial & industrial $ 2,143 $ 4,271 $ 308 $ 2,807 $ 739 Owner-occupied CRE 2,552 2,930 — 2,742 170 AG production 1,251 1,263 119 1,295 12 AG real estate 1,089 1,091 — 1,098 2 CRE investment 2,483 2,490 — 2,524 8 Construction & land development 427 427 — 480 — Residential construction — — — — — Residential first mortgage 2,560 2,785 — 2,611 97 Residential junior mortgage 221 231 — 225 2 Retail & other 12 15 — 12 3 Total $ 12,738 $ 15,503 $ 427 $ 13,794 $ 1,033 Originated impaired loans $ 4,487 $ 4,707 $ 427 $ 4,649 $ 176 Acquired impaired loans 8,251 10,796 — 9,145 857 Total $ 12,738 $ 15,503 $ 427 $ 13,794 $ 1,033 Total Impaired Loans – 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 |
Schedule of non accretable discount | Nonaccretable discount on purchased credit impaired loans: Nine Months Ended Year Ended (in thousands) September 30, 2019 September 30, 2018 December 31, 2018 Balance at beginning of period $ 6,408 $ 9,471 $ 9,471 Accretion to loan interest income (3,293 ) (1,872 ) (1,976 ) Transferred to accretable — (513 ) (990 ) Disposals of loans (660 ) (97 ) (97 ) Balance at end of period $ 2,455 $ 6,989 $ 6,408 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles and Mortgage Servicing Rights (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill and intangible assets included in other assets | A summary of goodwill and other intangibles was as follows. Nine Months Ended Year Ended (in thousands) September 30, 2019 December 31, 2018 Goodwill $ 107,366 $ 107,366 Core deposit intangibles 10,006 12,562 Customer list intangibles 3,999 4,379 Other intangibles 14,005 16,941 Goodwill and other intangibles, net $ 121,371 $ 124,307 |
Schedule of other intangible assets | Nine Months Ended Year Ended (in thousands) September 30, 2019 December 31, 2018 Core deposit intangibles: Gross carrying amount $ 29,015 $ 29,015 Accumulated amortization (19,009 ) (16,453 ) Net book value $ 10,006 $ 12,562 Additions during the period $ — $ — Amortization during the period $ 2,556 $ 3,915 Customer list intangibles: Gross carrying amount $ 5,523 $ 5,523 Accumulated amortization (1,524 ) (1,144 ) Net book value $ 3,999 $ 4,379 Additions during the period $ — $ 290 Amortization during the period $ 380 $ 474 |
Schedule of mortgage servicing rights | A summary of the changes in the mortgage servicing rights asset was as follows. Nine Months Ended Year Ended (in thousands) September 30, 2019 December 31, 2018 Mortgage servicing rights ("MSR") asset: MSR asset at beginning of year $ 3,749 $ 3,187 Capitalized MSR 1,807 1,203 Amortization during the period (611 ) (641 ) MSR asset at end of period $ 4,945 $ 3,749 Fair value of MSR asset at end of period $ 6,960 $ 6,347 Residential mortgage loans serviced for others $ 721,569 $ 603,446 Net book value of MSR asset to loans serviced for others 0.69 % 0.62 % |
Schedule of estimated future amortization expense for amortizing intangible assets and the MSR asset | The following table shows the estimated future amortization expense for amortizing intangible assets and the MSR asset. The projections are based on existing asset balances, the current interest rate environment and prepayment speeds as of September 30, 2019 . The actual amortization expense the Company recognizes in any given period may be significantly different depending upon acquisition or sale activities, changes in interest rates, prepayment speeds, market conditions, regulatory requirements and events or circumstances that indicate the carrying amount of an asset may not be recoverable. (in thousands) Core deposit intangibles Customer list intangibles MSR asset Year ending December 31, 2019 (remaining three months) $ 781 $ 127 $ 224 2020 2,657 507 879 2021 2,167 507 730 2022 1,735 507 730 2023 1,273 483 658 2024 841 449 400 Thereafter 552 1,419 1,324 Total $ 10,006 $ 3,999 $ 4,945 |
Short and Long-Term Borrowings
Short and Long-Term Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of components of long-term borrowings | The components of long-term borrowings (borrowing with an original maturity greater than one year) were as follows. (in thousands) September 30, 2019 December 31, 2018 FHLB advances $ 15,056 $ 35,252 Junior subordinated debentures 30,455 30,096 Subordinated notes 11,984 11,957 Total long-term borrowings $ 57,495 $ 77,305 Percent of fixed rate long-term borrowings 58 % 69 % Percent of floating rate long-term borrowings 42 % 31 % |
Schedule of junior subordinated debentures | Junior Subordinated Debentures 9/30/2019 9/30/2019 12/31/18 (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 (3,222 ) 7,088 6,939 2006 Baylake Corp. (3) 9/30/2036 16,598 (3,942 ) 12,656 12,478 2004 First Menasha Bancshares, Inc. (4) 3/17/2034 5,155 (630 ) 4,525 4,493 Total $ 38,249 $ (7,794 ) $ 30,455 $ 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 3.55% and 4.22% as of September 30, 2019 and December 31, 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 3.45% and 4.15% as of September 30, 2019 and December 31, 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 rates were 4.93% and 5.58% as of September 30, 2019 and December 31, 2018 , respectively. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value on a recurring basis | The following table presents the balances of assets and liabilities measured at fair value on a recurring basis for the periods presented. (in thousands) Fair Value Measurements Using Measured at Fair Value on a Recurring Basis: Total Level 1 Level 2 Level 3 September 30, 2019 U.S. government agency securities $ 16,490 $ — $ 16,490 $ — State, county and municipals 147,786 — 147,786 — Mortgage-backed securities 171,877 — 171,877 — Corporate debt securities 83,147 — 80,317 2,830 Securities AFS $ 419,300 $ — $ 416,470 $ 2,830 Other investments (equity securities) $ 4,080 $ 4,080 $ — $ — 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 $ — $ — |
Schedule of changes in the Level 3 securities AFS measured at fair value on a recurring basis | The following table presents the changes in the Level 3 securities AFS measured at fair value on a recurring basis. (in thousands) Nine Months Ended Year Ended Level 3 Fair Value Measurements: September 30, 2019 December 31, 2018 Balance at beginning of year $ 8,490 $ 9,151 Paydowns/Sales/Settlements (5,660 ) (661 ) Balance at end of period $ 2,830 $ 8,490 |
Schedule of assets measured at fair value on a nonrecurring basis | The following table presents the Company’s assets measured at fair value on a nonrecurring basis, aggregated by level in the fair value hierarchy within which those measurements fall. (in thousands) Fair Value Measurements Using Measured at Fair Value on a Nonrecurring Basis: Total Level 1 Level 2 Level 3 September 30, 2019 Impaired loans $ 12,311 $ — $ — $ 12,311 Other real estate owned (“OREO”) 1,325 — — 1,325 MSR asset 6,960 — — 6,960 December 31, 2018 Impaired loans $ 9,939 $ — $ — $ 9,939 OREO 420 — — 420 MSR asset 6,347 — — 6,347 |
Schedule of estimated fair values of financial instruments | The carrying amounts and estimated fair values of the Company’s financial instruments are shown below. September 30, 2019 (in thousands) Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 143,969 $ 143,969 $ 143,969 $ — $ — Certificates of deposit in other banks 5,395 5,390 — 5,390 — Securities AFS 419,300 419,300 — 416,470 2,830 Other investments, including equity securities 20,697 20,697 4,080 13,259 3,358 Loans held for sale 10,564 10,710 — 10,710 — Loans, net 2,229,311 2,244,410 — — 2,244,410 BOLI 71,796 71,796 71,796 — — MSR asset 4,945 6,960 — — 6,960 Financial liabilities: Deposits $ 2,584,447 $ 2,584,662 $ — $ — $ 2,584,662 Long-term borrowings 57,495 56,679 — 15,135 41,544 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, including equity securities 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 |
Operating Leases (Tables)
Operating Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Cost of Operating Leases | A summary of net lease cost and selected other information related to operating leases was as follows. Nine Months Ended ($ in thousands) September 30, 2019 Net lease cost: Operating lease cost $ 737 Variable lease cost 179 Net lease cost $ 916 Selected other operating lease information: Weighted average remaining lease term (years) 5 Weighted average discount rate 2.5 % |
Schedule of Operating Lease Maturities | The following table summarizes the maturity of remaining lease liabilities. (in thousands) Year ending December 31, 2019 (remaining three months) $ 951 2020 1,037 2021 911 2022 851 2023 607 2024 499 Thereafter 16 Total future minimum lease payments 4,872 Less: amount representing interest (122 ) Present value of net future minimum lease payments $ 4,750 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Accounting Policies [Abstract] | ||
Lease liability | $ 4,750 | $ 5,000 |
Right-of-use asset | $ 5,000 |
Pending Acquisition (Details)
Pending Acquisition (Details) $ in Thousands | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | ||||||
Assets | $ 3,105,671 | $ 3,096,535 | ||||
Deposits | 2,584,447 | 2,614,138 | ||||
Equity | 428,742 | $ 412,148 | $ 387,352 | $ 377,903 | $ 371,285 | $ 364,879 |
Choice Bancorp Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Assets | 436,000 | |||||
Loans | 352,000 | |||||
Deposits | 306,000 | |||||
Equity | $ 41,000 | |||||
Percentage of assets represented by acquiree | 0.14 |
Earnings per Common Share - Nar
Earnings per Common Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Shares excluded from calculation of earnings per common share (in shares) | 0.1 | 0.1 | 0.1 | 0.1 |
Earnings per Common Share - Cal
Earnings per Common Share - Calculations for basic and diluted earnings (loss) per common share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to Nicolet Bankshares, Inc. | $ 13,530 | $ 10,859 | $ 42,346 | $ 30,173 |
Weighted average common shares outstanding (in shares) | 9,346,814 | 9,633,158 | 9,393,795 | 9,678,726 |
Effect of dilutive common stock awards (in shares) | 350,000 | 316,000 | 313,000 | 325,000 |
Diluted weighted average common shares outstanding (in shares) | 9,696,850 | 9,949,295 | 9,706,795 | 10,004,316 |
Basic earnings per common share (in dollars per share) | $ 1.45 | $ 1.13 | $ 4.51 | $ 3.12 |
Diluted earnings per common share (in dollars per share) | $ 1.40 | $ 1.09 | $ 4.36 | $ 3.02 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Feb. 28, 2019 | Jan. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of share awards authorized (in shares) | 3,000,000 | ||||
Number of shares were available for grant under two plans (in shares) | 1,600,000 | ||||
Shares surrendered to the Company (in shares) | 70,068 | ||||
Numbers of shares surrendered (in shares) | 1,637 | ||||
Stock-based employee compensation | $ 3.4 | $ 3.4 | |||
Unrecognized compensation cost | $ 9.9 | ||||
Remaining vesting period over which cost expected to be recognized | 3 years | ||||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total intrinsic value of options exercised | $ 6.9 | 1.8 | |||
Tax benefit for impact of share based compensation | $ 1 | $ 0.2 | |||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock granted to directors (in shares) | 4,257 | 3,510 | |||
Long Term Incentive Plan 2011 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of share awards authorized (in shares) | 1,500,000 | ||||
Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based employee compensation | $ 0.3 | $ 0.2 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted average assumptions (Details) - Stock Incentive Plan - Stock Options - $ / shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Expected volatility | 25.00% | 25.00% |
Risk-free interest rate | 2.37% | 2.48% |
Expected average life (in years) | 7 years | 7 years |
Weighted average per share fair value of options (in usd per share) | $ 19.23 | $ 17.60 |
Stock-Based Compensation - Acti
Stock-Based Compensation - Activity of stock incentive plans for options (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | |
Option Shares Outstanding | |
Forfeited (in shares) | (70,068) |
Stock Incentive Plan | Stock Options | |
Option Shares Outstanding | |
Beginning balance outstanding (in shares) | 1,581,699 |
Granted (in shares) | 15,000 |
Exercise of stock options (in shares) | (185,328) |
Forfeited (in shares) | (3,538) |
Ending balance outstanding (in shares) | 1,407,833 |
Exercisable (in shares) | 644,033 |
Weighted Average Exercise Price | |
Beginning balance outstanding (in usd per share) | $ / shares | $ 40.77 |
Granted (in usd per share) | $ / shares | 59.55 |
Exercise of stock options (in usd per share) | $ / shares | 23.64 |
Forfeited (in usd per share) | $ / shares | 27.43 |
Ending balance outstanding (in usd per share) | $ / shares | 43.25 |
Exercisable (in usd per share) | $ / shares | $ 39.28 |
Weighted average remaining life outstanding (in years) | 6 years 11 months 26 days |
Weighted average remaining life exercisable (in years) | 6 years 6 months |
Aggregate intrinsic value outstanding | $ | $ 32,829 |
Aggregate intrinsic value exercisable | $ | $ 17,577 |
Stock-Based Compensation - Ac_2
Stock-Based Compensation - Activity of restricted stock awards (Details) - Restricted Stock - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Weighted-Average Grant Date Fair Value | ||
Beginning balance outstanding (in usd per share) | $ 39.37 | |
Granted (in usd per share) | 61.96 | |
Vested (in usd per share) | 45.05 | |
Forfeited (in usd per share) | 16.50 | |
Ending balance outstanding (in usd per share) | $ 41.50 | $ 39.37 |
Restricted Shares Outstanding | ||
Beginning balance outstanding (in shares) | 29,512 | |
Granted (in shares) | 4,257 | 3,510 |
Vested (in shares) | (9,672) | |
Forfeited (in shares) | (408) | |
Ending balance outstanding (in shares) | 23,689 | 29,512 |
Securities Available for Sale -
Securities Available for Sale - Narrative (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Debt Securities, Available-for-sale [Abstract] | ||
Other-than-temporary impairment losses charged to earnings | $ 0 | $ 0 |
Securities Available for Sale_2
Securities Available for Sale - Amortized costs and fair values of debt securities available for sale (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 412,894 | $ 407,871 |
Gross Unrealized Gains | 7,473 | 470 |
Gross Unrealized Losses | 1,067 | 8,197 |
Fair Value | 419,300 | 400,144 |
U.S. government agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 16,697 | 22,467 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 207 | 818 |
Fair Value | 16,490 | 21,649 |
State, county and municipals | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 147,186 | 163,702 |
Gross Unrealized Gains | 798 | 76 |
Gross Unrealized Losses | 198 | 3,252 |
Fair Value | 147,786 | 160,526 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 169,262 | 134,350 |
Gross Unrealized Gains | 3,267 | 328 |
Gross Unrealized Losses | 652 | 3,034 |
Fair Value | 171,877 | 131,644 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 79,749 | 87,352 |
Gross Unrealized Gains | 3,408 | 66 |
Gross Unrealized Losses | 10 | 1,093 |
Fair Value | $ 83,147 | $ 86,325 |
Securities Available for Sale_3
Securities Available for Sale - Gross unrealized losses and the related fair value of securities available for sale (Details) $ in Thousands | Sep. 30, 2019USD ($)Security | Dec. 31, 2018USD ($)Security |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | $ 84,571 | $ 88,296 |
Less than 12 months, unrealized losses | 275 | 907 |
12 months or more, fair value | 65,643 | 251,570 |
12 months or more, unrealized losses | 792 | 7,290 |
Total, fair value | 150,214 | 339,866 |
Total, unrealized losses | $ 1,067 | $ 8,197 |
Total, number of securities | Security | 293 | 680 |
U.S. government agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | $ 0 | $ 0 |
Less than 12 months, unrealized losses | 0 | 0 |
12 months or more, fair value | 16,490 | 21,649 |
12 months or more, unrealized losses | 207 | 818 |
Total, fair value | 16,490 | 21,649 |
Total, unrealized losses | $ 207 | $ 818 |
Total, number of securities | Security | 3 | 3 |
State, county and municipals | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | $ 44,012 | $ 16,136 |
Less than 12 months, unrealized losses | 138 | 98 |
12 months or more, fair value | 8,370 | 130,975 |
12 months or more, unrealized losses | 60 | 3,154 |
Total, fair value | 52,382 | 147,111 |
Total, unrealized losses | $ 198 | $ 3,252 |
Total, number of securities | Security | 139 | 440 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | $ 38,515 | $ 20,568 |
Less than 12 months, unrealized losses | 127 | 132 |
12 months or more, fair value | 40,783 | 89,189 |
12 months or more, unrealized losses | 525 | 2,902 |
Total, fair value | 79,298 | 109,757 |
Total, unrealized losses | $ 652 | $ 3,034 |
Total, number of securities | Security | 150 | 204 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | $ 2,044 | $ 51,592 |
Less than 12 months, unrealized losses | 10 | 677 |
12 months or more, fair value | 0 | 9,757 |
12 months or more, unrealized losses | 0 | 416 |
Total, fair value | 2,044 | 61,349 |
Total, unrealized losses | $ 10 | $ 1,093 |
Total, number of securities | Security | 1 | 33 |
Securities Available for Sale_4
Securities Available for Sale - Amortized cost and fair values of securities available for sale at by contractual maturity (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Amortized Cost | |
Due in less than one year | $ 18,762 |
Due in one year through five years | 184,588 |
Due after five years through ten years | 33,877 |
Due after ten years | 6,405 |
Single maturity date, amortized cost | 243,632 |
Amortized cost | 412,894 |
Fair Value | |
Due in less than one year | 18,770 |
Due in one year through five years | 187,185 |
Due after five years through ten years | 34,314 |
Due after ten years | 7,154 |
Single maturity date, fair value | 247,423 |
Fair value | 419,300 |
Mortgage-backed securities | |
Amortized Cost | |
Amortized cost | 169,262 |
Fair Value | |
Fair value | $ 171,877 |
Securities Available for Sale_5
Securities Available for Sale - Proceeds from the sale of securities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Debt Securities, Available-for-sale [Abstract] | ||
Gross gains | $ 152 | $ 0 |
Gross losses | (120) | 0 |
Gains (losses) on sales of securities AFS, net | 32 | 0 |
Proceeds from sales of securities AFS | $ 13,240 | $ 0 |
Loans, Allowance for Loan Los_3
Loans, Allowance for Loan Losses, and Credit Quality - Narrative (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Remaining impaired loans | $ 12,738,000 | $ 9,939,000 |
Number of loans classified as troubled debt | Loan | 5 | 4 |
Troubled debt restructuring current outstanding balance | $ 1,200,000 | $ 600,000 |
Pre-modification balance | 1,400,000 | 2,700,000 |
Acquired | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
PCI loans acquired fair value | 43,600,000 | |
Nonaccretable mark | 34,400,000 | |
Accretable mark | 0 | |
Remaining impaired loans | 8,251,000 | $ 9,391,000 |
Current | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Troubled debt restructuring current outstanding balance | $ 500,000 |
Loans, Allowance for Loan Los_4
Loans, Allowance for Loan Losses, and Credit Quality - Summary of loan composition (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 2,242,931 | $ 2,166,181 | ||
Less allowance for loan losses (“ALLL”) | 13,620 | 13,153 | $ 12,992 | $ 12,653 |
Loans, net | $ 2,229,311 | $ 2,153,028 | ||
Percent of total | 100.00% | 100.00% | ||
Allowance for loan losses to loans | 0.61% | 0.61% | ||
Percentage of loans originated | 74.00% | 69.00% | ||
Percentage of loans acquired | 26.00% | 31.00% | ||
Retail & other | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 28,713 | $ 26,493 | ||
Less allowance for loan losses (“ALLL”) | 314 | 304 | 225 | |
Loans, net | $ 28,399 | $ 26,189 | ||
Percent of total | 1.00% | 1.00% | ||
Commercial portfolio segment | Commercial & industrial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 763,742 | $ 684,920 | ||
Less allowance for loan losses (“ALLL”) | 5,658 | 5,271 | 4,934 | |
Loans, net | $ 758,084 | $ 679,649 | ||
Percent of total | 34.00% | 32.00% | ||
Commercial portfolio segment | Owner-occupied CRE | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 456,508 | $ 441,353 | ||
Less allowance for loan losses (“ALLL”) | 2,779 | 2,847 | 2,607 | |
Loans, net | $ 453,729 | $ 438,506 | ||
Percent of total | 20.00% | 20.00% | ||
Commercial portfolio segment | AG production | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 36,050 | $ 35,625 | ||
Less allowance for loan losses (“ALLL”) | 206 | 121 | 129 | |
Loans, net | $ 35,844 | $ 35,504 | ||
Percent of total | 2.00% | 2.00% | ||
Commercial real estate portfolio segment | AG real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 58,591 | $ 53,444 | ||
Less allowance for loan losses (“ALLL”) | 347 | 301 | 296 | |
Loans, net | $ 58,244 | $ 53,143 | ||
Percent of total | 3.00% | 2.00% | ||
Commercial real estate portfolio segment | CRE investment | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 336,442 | $ 343,652 | ||
Less allowance for loan losses (“ALLL”) | 1,502 | 1,470 | 1,388 | |
Loans, net | $ 334,940 | $ 342,182 | ||
Percent of total | 15.00% | 16.00% | ||
Commercial real estate portfolio segment | Construction & land development | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 61,810 | $ 80,599 | ||
Less allowance for loan losses (“ALLL”) | 370 | 510 | 726 | |
Loans, net | $ 61,440 | $ 80,089 | ||
Percent of total | 3.00% | 4.00% | ||
Residential | Residential construction | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 41,496 | $ 30,926 | ||
Less allowance for loan losses (“ALLL”) | 342 | 211 | 251 | |
Loans, net | $ 41,154 | $ 30,715 | ||
Percent of total | 2.00% | 1.00% | ||
Residential | Residential first mortgage | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 343,400 | $ 357,841 | ||
Less allowance for loan losses (“ALLL”) | 1,607 | 1,646 | 1,609 | |
Loans, net | $ 341,793 | $ 356,195 | ||
Percent of total | 15.00% | 17.00% | ||
Residential | Residential junior mortgage | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 116,179 | $ 111,328 | ||
Less allowance for loan losses (“ALLL”) | 495 | 472 | 488 | |
Loans, net | $ 115,684 | $ 110,856 | ||
Percent of total | 5.00% | 5.00% | ||
Originated | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 1,650,693 | $ 1,485,165 | ||
Less allowance for loan losses (“ALLL”) | 12,064 | 11,448 | 10,542 | |
Loans, net | $ 1,638,629 | $ 1,473,717 | ||
Percent of total | 100.00% | 100.00% | ||
Allowance for loan losses to loans | 0.73% | 0.77% | ||
Originated | Retail & other | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 27,232 | $ 23,809 | ||
Less allowance for loan losses (“ALLL”) | 293 | 281 | 200 | |
Loans, net | $ 26,939 | $ 23,528 | ||
Percent of total | 2.00% | 2.00% | ||
Originated | Commercial portfolio segment | Commercial & industrial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 660,040 | $ 568,100 | ||
Less allowance for loan losses (“ALLL”) | 5,109 | 4,683 | 4,192 | |
Loans, net | $ 654,931 | $ 563,417 | ||
Percent of total | 40.00% | 38.00% | ||
Originated | Commercial portfolio segment | Owner-occupied CRE | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 321,323 | $ 283,531 | ||
Less allowance for loan losses (“ALLL”) | 2,411 | 2,439 | 2,115 | |
Loans, net | $ 318,912 | $ 281,092 | ||
Percent of total | 19.00% | 19.00% | ||
Originated | Commercial portfolio segment | AG production | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 11,450 | $ 11,113 | ||
Less allowance for loan losses (“ALLL”) | 194 | 110 | 112 | |
Loans, net | $ 11,256 | $ 11,003 | ||
Percent of total | 1.00% | 1.00% | ||
Originated | Commercial real estate portfolio segment | AG real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 38,616 | $ 31,374 | ||
Less allowance for loan losses (“ALLL”) | 300 | 255 | 235 | |
Loans, net | $ 38,316 | $ 31,119 | ||
Percent of total | 2.00% | 2.00% | ||
Originated | Commercial real estate portfolio segment | CRE investment | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 180,427 | $ 171,087 | ||
Less allowance for loan losses (“ALLL”) | 1,298 | 1,230 | 1,154 | |
Loans, net | $ 179,129 | $ 169,857 | ||
Percent of total | 11.00% | 12.00% | ||
Originated | Commercial real estate portfolio segment | Construction & land development | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 52,806 | $ 66,478 | ||
Less allowance for loan losses (“ALLL”) | 320 | 431 | 628 | |
Loans, net | $ 52,486 | $ 66,047 | ||
Percent of total | 3.00% | 4.00% | ||
Originated | Residential | Residential construction | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 41,246 | $ 30,926 | ||
Less allowance for loan losses (“ALLL”) | 308 | 211 | 200 | |
Loans, net | $ 40,938 | $ 30,715 | ||
Percent of total | 3.00% | 2.00% | ||
Originated | Residential | Residential first mortgage | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 228,312 | $ 220,368 | ||
Less allowance for loan losses (“ALLL”) | 1,394 | 1,400 | 1,297 | |
Loans, net | $ 226,918 | $ 218,968 | ||
Percent of total | 14.00% | 15.00% | ||
Originated | Residential | Residential junior mortgage | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 89,241 | $ 78,379 | ||
Less allowance for loan losses (“ALLL”) | 437 | 408 | 409 | |
Loans, net | $ 88,804 | $ 77,971 | ||
Percent of total | 5.00% | 5.00% | ||
Acquired | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 592,238 | $ 681,016 | ||
Less allowance for loan losses (“ALLL”) | 1,556 | 1,705 | 2,111 | |
Loans, net | $ 590,682 | $ 679,311 | ||
Percent of total | 100.00% | 100.00% | ||
Allowance for loan losses to loans | 0.26% | 0.25% | ||
Acquired | Retail & other | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 1,481 | $ 2,684 | ||
Less allowance for loan losses (“ALLL”) | 21 | 23 | 25 | |
Loans, net | $ 1,460 | $ 2,661 | ||
Percent of total | 0.00% | 1.00% | ||
Acquired | Commercial portfolio segment | Commercial & industrial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 103,702 | $ 116,820 | ||
Less allowance for loan losses (“ALLL”) | 549 | 588 | 742 | |
Loans, net | $ 103,153 | $ 116,232 | ||
Percent of total | 18.00% | 17.00% | ||
Acquired | Commercial portfolio segment | Owner-occupied CRE | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 135,185 | $ 157,822 | ||
Less allowance for loan losses (“ALLL”) | 368 | 408 | 492 | |
Loans, net | $ 134,817 | $ 157,414 | ||
Percent of total | 23.00% | 23.00% | ||
Acquired | Commercial portfolio segment | AG production | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 24,600 | $ 24,512 | ||
Less allowance for loan losses (“ALLL”) | 12 | 11 | 17 | |
Loans, net | $ 24,588 | $ 24,501 | ||
Percent of total | 4.00% | 4.00% | ||
Acquired | Commercial real estate portfolio segment | AG real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 19,975 | $ 22,070 | ||
Less allowance for loan losses (“ALLL”) | 47 | 46 | 61 | |
Loans, net | $ 19,928 | $ 22,024 | ||
Percent of total | 3.00% | 3.00% | ||
Acquired | Commercial real estate portfolio segment | CRE investment | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 156,015 | $ 172,565 | ||
Less allowance for loan losses (“ALLL”) | 204 | 240 | 234 | |
Loans, net | $ 155,811 | $ 172,325 | ||
Percent of total | 26.00% | 25.00% | ||
Acquired | Commercial real estate portfolio segment | Construction & land development | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 9,004 | $ 14,121 | ||
Less allowance for loan losses (“ALLL”) | 50 | 79 | 98 | |
Loans, net | $ 8,954 | $ 14,042 | ||
Percent of total | 2.00% | 2.00% | ||
Acquired | Residential | Residential construction | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 250 | $ 0 | ||
Less allowance for loan losses (“ALLL”) | 34 | 0 | 51 | |
Loans, net | $ 216 | $ 0 | ||
Percent of total | 0.00% | 0.00% | ||
Acquired | Residential | Residential first mortgage | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 115,088 | $ 137,473 | ||
Less allowance for loan losses (“ALLL”) | 213 | 246 | 312 | |
Loans, net | $ 114,875 | $ 137,227 | ||
Percent of total | 19.00% | 20.00% | ||
Acquired | Residential | Residential junior mortgage | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans | $ 26,938 | $ 32,949 | ||
Less allowance for loan losses (“ALLL”) | 58 | 64 | $ 79 | |
Loans, net | $ 26,880 | $ 32,885 | ||
Percent of total | 5.00% | 5.00% |
Loans, Allowance for Loan Los_5
Loans, Allowance for Loan Losses, and Credit Quality - Summary of allowance for loan losses (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | $ 13,153 | $ 12,653 | $ 12,653 |
Provision for loan losses | 900 | 1,360 | 1,600 |
Charge-offs | (629) | (1,110) | (1,213) |
Recoveries | 196 | 89 | 113 |
Net (charge-offs) recoveries | (433) | (1,021) | (1,100) |
Ending balance | $ 13,620 | $ 12,992 | $ 13,153 |
Loans, Allowance for Loan Los_6
Loans, Allowance for Loan Losses, and Credit Quality - Summary of changes in ALLL by portfolio segment for periods - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Allowance for Loan Losses (ALLL): | |||
Beginning balance | $ 13,153 | $ 12,653 | $ 12,653 |
Provision | 900 | 1,360 | 1,600 |
Charge-offs | (629) | (1,110) | (1,213) |
Recoveries | 196 | 89 | 113 |
Net (charge-offs) recoveries | (433) | (1,021) | (1,100) |
Ending balance | $ 13,620 | 12,992 | $ 13,153 |
As percent of ALLL | 100.00% | 100.00% | |
ALLL: | |||
Individually evaluated | $ 427 | $ 0 | |
Collectively evaluated | 13,193 | 13,153 | |
Loans: | |||
Individually evaluated | 12,738 | 9,939 | |
Collectively evaluated | 2,230,193 | 2,156,242 | |
Total | 2,242,931 | 2,166,181 | |
Net loans | 2,229,311 | 2,153,028 | |
Retail & other | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 304 | 225 | 225 |
Provision | 225 | 267 | |
Charge-offs | (251) | (204) | |
Recoveries | 36 | 16 | |
Net (charge-offs) recoveries | (215) | (188) | |
Ending balance | $ 314 | $ 304 | |
As percent of ALLL | 2.00% | 2.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 314 | 304 | |
Loans: | |||
Individually evaluated | 12 | 12 | |
Collectively evaluated | 28,701 | 26,481 | |
Total | 28,713 | 26,493 | |
Net loans | 28,399 | 26,189 | |
Commercial portfolio segment | Commercial & industrial | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 5,271 | 4,934 | 4,934 |
Provision | 356 | 1,107 | |
Charge-offs | (59) | (813) | |
Recoveries | 90 | 43 | |
Net (charge-offs) recoveries | 31 | (770) | |
Ending balance | $ 5,658 | $ 5,271 | |
As percent of ALLL | 42.00% | 40.00% | |
ALLL: | |||
Individually evaluated | $ 308 | $ 0 | |
Collectively evaluated | 5,350 | 5,271 | |
Loans: | |||
Individually evaluated | 2,143 | 2,927 | |
Collectively evaluated | 761,599 | 681,993 | |
Total | 763,742 | 684,920 | |
Net loans | 758,084 | 679,649 | |
Commercial portfolio segment | Owner-occupied CRE | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 2,847 | 2,607 | 2,607 |
Provision | (57) | 300 | |
Charge-offs | (13) | (74) | |
Recoveries | 2 | 14 | |
Net (charge-offs) recoveries | (11) | (60) | |
Ending balance | $ 2,779 | $ 2,847 | |
As percent of ALLL | 20.00% | 22.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 2,779 | 2,847 | |
Loans: | |||
Individually evaluated | 2,552 | 1,506 | |
Collectively evaluated | 453,956 | 439,847 | |
Total | 456,508 | 441,353 | |
Net loans | 453,729 | 438,506 | |
Commercial portfolio segment | AG production | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 121 | 129 | 129 |
Provision | 85 | (8) | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | |
Ending balance | $ 206 | $ 121 | |
As percent of ALLL | 1.00% | 1.00% | |
ALLL: | |||
Individually evaluated | $ 119 | $ 0 | |
Collectively evaluated | 87 | 121 | |
Loans: | |||
Individually evaluated | 1,251 | 0 | |
Collectively evaluated | 34,799 | 35,625 | |
Total | 36,050 | 35,625 | |
Net loans | 35,844 | 35,504 | |
Commercial real estate portfolio segment | AG real estate | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 301 | 296 | 296 |
Provision | 46 | 5 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | |
Ending balance | $ 347 | $ 301 | |
As percent of ALLL | 3.00% | 2.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 347 | 301 | |
Loans: | |||
Individually evaluated | 1,089 | 222 | |
Collectively evaluated | 57,502 | 53,222 | |
Total | 58,591 | 53,444 | |
Net loans | 58,244 | 53,143 | |
Commercial real estate portfolio segment | CRE investment | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 1,470 | 1,388 | 1,388 |
Provision | 32 | 119 | |
Charge-offs | 0 | (37) | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | 0 | (37) | |
Ending balance | $ 1,502 | $ 1,470 | |
As percent of ALLL | 11.00% | 11.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 1,502 | 1,470 | |
Loans: | |||
Individually evaluated | 2,483 | 1,686 | |
Collectively evaluated | 333,959 | 341,966 | |
Total | 336,442 | 343,652 | |
Net loans | 334,940 | 342,182 | |
Commercial real estate portfolio segment | Construction & land development | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 510 | 726 | 726 |
Provision | (140) | (216) | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | |
Ending balance | $ 370 | $ 510 | |
As percent of ALLL | 3.00% | 4.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 370 | 510 | |
Loans: | |||
Individually evaluated | 427 | 603 | |
Collectively evaluated | 61,383 | 79,996 | |
Total | 61,810 | 80,599 | |
Net loans | 61,440 | 80,089 | |
Residential | Residential first mortgage | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 1,646 | 1,609 | 1,609 |
Provision | (75) | 117 | |
Charge-offs | 0 | (85) | |
Recoveries | 36 | 5 | |
Net (charge-offs) recoveries | 36 | (80) | |
Ending balance | $ 1,607 | $ 1,646 | |
As percent of ALLL | 12.00% | 12.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 1,607 | 1,646 | |
Loans: | |||
Individually evaluated | 2,560 | 2,750 | |
Collectively evaluated | 340,840 | 355,091 | |
Total | 343,400 | 357,841 | |
Net loans | 341,793 | 356,195 | |
Residential | Residential junior mortgage | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 472 | 488 | 488 |
Provision | 71 | (51) | |
Charge-offs | (80) | 0 | |
Recoveries | 32 | 35 | |
Net (charge-offs) recoveries | (48) | 35 | |
Ending balance | $ 495 | $ 472 | |
As percent of ALLL | 4.00% | 4.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 495 | 472 | |
Loans: | |||
Individually evaluated | 221 | 233 | |
Collectively evaluated | 115,958 | 111,095 | |
Total | 116,179 | 111,328 | |
Net loans | 115,684 | 110,856 | |
Residential | Residential construction | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 211 | 251 | 251 |
Provision | 357 | (40) | |
Charge-offs | (226) | 0 | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | (226) | 0 | |
Ending balance | $ 342 | $ 211 | |
As percent of ALLL | 2.00% | 2.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 342 | 211 | |
Loans: | |||
Individually evaluated | 0 | 0 | |
Collectively evaluated | 41,496 | 30,926 | |
Total | 41,496 | 30,926 | |
Net loans | 41,154 | 30,715 | |
Originated | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 11,448 | 10,542 | 10,542 |
Provision | 994 | 2,014 | |
Charge-offs | (569) | (1,200) | |
Recoveries | 191 | 92 | |
Net (charge-offs) recoveries | (378) | (1,108) | |
Ending balance | $ 12,064 | $ 11,448 | |
As percent of ALLL | 100.00% | 100.00% | |
ALLL: | |||
Individually evaluated | $ 427 | $ 0 | |
Collectively evaluated | 11,637 | 11,448 | |
Loans: | |||
Individually evaluated | 4,487 | 548 | |
Collectively evaluated | 1,646,206 | 1,484,617 | |
Total | 1,650,693 | 1,485,165 | |
Net loans | 1,638,629 | 1,473,717 | |
Originated | Retail & other | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 281 | 200 | 200 |
Provision | 227 | 266 | |
Charge-offs | (251) | (201) | |
Recoveries | 36 | 16 | |
Net (charge-offs) recoveries | (215) | (185) | |
Ending balance | $ 293 | $ 281 | |
As percent of ALLL | 2.00% | 2.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 293 | 281 | |
Loans: | |||
Individually evaluated | 0 | 0 | |
Collectively evaluated | 27,232 | 23,809 | |
Total | 27,232 | 23,809 | |
Net loans | 26,939 | 23,528 | |
Originated | Commercial portfolio segment | Commercial & industrial | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 4,683 | 4,192 | 4,192 |
Provision | 395 | 1,262 | |
Charge-offs | (59) | (813) | |
Recoveries | 90 | 42 | |
Net (charge-offs) recoveries | 31 | (771) | |
Ending balance | $ 5,109 | $ 4,683 | |
As percent of ALLL | 42.00% | 41.00% | |
ALLL: | |||
Individually evaluated | $ 308 | $ 0 | |
Collectively evaluated | 4,801 | 4,683 | |
Loans: | |||
Individually evaluated | 722 | 227 | |
Collectively evaluated | 659,318 | 567,873 | |
Total | 660,040 | 568,100 | |
Net loans | 654,931 | 563,417 | |
Originated | Commercial portfolio segment | Owner-occupied CRE | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 2,439 | 2,115 | 2,115 |
Provision | (17) | 385 | |
Charge-offs | (13) | (64) | |
Recoveries | 2 | 3 | |
Net (charge-offs) recoveries | (11) | (61) | |
Ending balance | $ 2,411 | $ 2,439 | |
As percent of ALLL | 20.00% | 21.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 2,411 | 2,439 | |
Loans: | |||
Individually evaluated | 1,792 | 321 | |
Collectively evaluated | 319,531 | 283,210 | |
Total | 321,323 | 283,531 | |
Net loans | 318,912 | 281,092 | |
Originated | Commercial portfolio segment | AG production | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 110 | 112 | 112 |
Provision | 84 | (2) | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | |
Ending balance | $ 194 | $ 110 | |
As percent of ALLL | 1.00% | 1.00% | |
ALLL: | |||
Individually evaluated | $ 119 | $ 0 | |
Collectively evaluated | 75 | 110 | |
Loans: | |||
Individually evaluated | 1,095 | 0 | |
Collectively evaluated | 10,355 | 11,113 | |
Total | 11,450 | 11,113 | |
Net loans | 11,256 | 11,003 | |
Originated | Commercial real estate portfolio segment | AG real estate | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 255 | 235 | 235 |
Provision | 45 | 20 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | |
Ending balance | $ 300 | $ 255 | |
As percent of ALLL | 2.00% | 2.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 300 | 255 | |
Loans: | |||
Individually evaluated | 878 | 0 | |
Collectively evaluated | 37,738 | 31,374 | |
Total | 38,616 | 31,374 | |
Net loans | 38,316 | 31,119 | |
Originated | Commercial real estate portfolio segment | CRE investment | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 1,230 | 1,154 | 1,154 |
Provision | 68 | 113 | |
Charge-offs | 0 | (37) | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | 0 | (37) | |
Ending balance | $ 1,298 | $ 1,230 | |
As percent of ALLL | 11.00% | 11.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 1,298 | 1,230 | |
Loans: | |||
Individually evaluated | 0 | 0 | |
Collectively evaluated | 180,427 | 171,087 | |
Total | 180,427 | 171,087 | |
Net loans | 179,129 | 169,857 | |
Originated | Commercial real estate portfolio segment | Construction & land development | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 431 | 628 | 628 |
Provision | (111) | (197) | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | |
Ending balance | $ 320 | $ 431 | |
As percent of ALLL | 3.00% | 4.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 320 | 431 | |
Loans: | |||
Individually evaluated | 0 | 0 | |
Collectively evaluated | 52,806 | 66,478 | |
Total | 52,806 | 66,478 | |
Net loans | 52,486 | 66,047 | |
Originated | Residential | Residential first mortgage | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 1,400 | 1,297 | 1,297 |
Provision | (42) | 187 | |
Charge-offs | 0 | (85) | |
Recoveries | 36 | 1 | |
Net (charge-offs) recoveries | 36 | (84) | |
Ending balance | $ 1,394 | $ 1,400 | |
As percent of ALLL | 12.00% | 12.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 1,394 | 1,400 | |
Loans: | |||
Individually evaluated | 0 | 0 | |
Collectively evaluated | 228,312 | 220,368 | |
Total | 228,312 | 220,368 | |
Net loans | 226,918 | 218,968 | |
Originated | Residential | Residential junior mortgage | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 408 | 409 | 409 |
Provision | 22 | (31) | |
Charge-offs | (20) | 0 | |
Recoveries | 27 | 30 | |
Net (charge-offs) recoveries | 7 | 30 | |
Ending balance | $ 437 | $ 408 | |
As percent of ALLL | 4.00% | 4.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 437 | 408 | |
Loans: | |||
Individually evaluated | 0 | 0 | |
Collectively evaluated | 89,241 | 78,379 | |
Total | 89,241 | 78,379 | |
Net loans | 88,804 | 77,971 | |
Originated | Residential | Residential construction | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 211 | 200 | 200 |
Provision | 323 | 11 | |
Charge-offs | (226) | 0 | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | (226) | 0 | |
Ending balance | $ 308 | $ 211 | |
As percent of ALLL | 3.00% | 2.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 308 | 211 | |
Loans: | |||
Individually evaluated | 0 | 0 | |
Collectively evaluated | 41,246 | 30,926 | |
Total | 41,246 | 30,926 | |
Net loans | 40,938 | 30,715 | |
Acquired | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 1,705 | 2,111 | 2,111 |
Provision | (94) | (414) | |
Charge-offs | (60) | (13) | |
Recoveries | 5 | 21 | |
Net (charge-offs) recoveries | (55) | 8 | |
Ending balance | $ 1,556 | $ 1,705 | |
As percent of ALLL | 100.00% | 100.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 1,556 | 1,705 | |
Loans: | |||
Individually evaluated | 8,251 | 9,391 | |
Collectively evaluated | 583,987 | 671,625 | |
Total | 592,238 | 681,016 | |
Net loans | 590,682 | 679,311 | |
Acquired | Retail & other | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 23 | 25 | 25 |
Provision | (2) | 1 | |
Charge-offs | 0 | (3) | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | 0 | (3) | |
Ending balance | $ 21 | $ 23 | |
As percent of ALLL | 1.00% | 1.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 21 | 23 | |
Loans: | |||
Individually evaluated | 12 | 12 | |
Collectively evaluated | 1,469 | 2,672 | |
Total | 1,481 | 2,684 | |
Net loans | 1,460 | 2,661 | |
Acquired | Commercial portfolio segment | Commercial & industrial | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 588 | 742 | 742 |
Provision | (39) | (155) | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 1 | |
Net (charge-offs) recoveries | 0 | 1 | |
Ending balance | $ 549 | $ 588 | |
As percent of ALLL | 35.00% | 34.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 549 | 588 | |
Loans: | |||
Individually evaluated | 1,421 | 2,700 | |
Collectively evaluated | 102,281 | 114,120 | |
Total | 103,702 | 116,820 | |
Net loans | 103,153 | 116,232 | |
Acquired | Commercial portfolio segment | Owner-occupied CRE | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 408 | 492 | 492 |
Provision | (40) | (85) | |
Charge-offs | 0 | (10) | |
Recoveries | 0 | 11 | |
Net (charge-offs) recoveries | 0 | 1 | |
Ending balance | $ 368 | $ 408 | |
As percent of ALLL | 24.00% | 24.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 368 | 408 | |
Loans: | |||
Individually evaluated | 760 | 1,185 | |
Collectively evaluated | 134,425 | 156,637 | |
Total | 135,185 | 157,822 | |
Net loans | 134,817 | 157,414 | |
Acquired | Commercial portfolio segment | AG production | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 11 | 17 | 17 |
Provision | 1 | (6) | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | |
Ending balance | $ 12 | $ 11 | |
As percent of ALLL | 1.00% | 1.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 12 | 11 | |
Loans: | |||
Individually evaluated | 156 | 0 | |
Collectively evaluated | 24,444 | 24,512 | |
Total | 24,600 | 24,512 | |
Net loans | 24,588 | 24,501 | |
Acquired | Commercial real estate portfolio segment | AG real estate | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 46 | 61 | 61 |
Provision | 1 | (15) | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | |
Ending balance | $ 47 | $ 46 | |
As percent of ALLL | 3.00% | 3.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 47 | 46 | |
Loans: | |||
Individually evaluated | 211 | 222 | |
Collectively evaluated | 19,764 | 21,848 | |
Total | 19,975 | 22,070 | |
Net loans | 19,928 | 22,024 | |
Acquired | Commercial real estate portfolio segment | CRE investment | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 240 | 234 | 234 |
Provision | (36) | 6 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | |
Ending balance | $ 204 | $ 240 | |
As percent of ALLL | 13.00% | 14.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 204 | 240 | |
Loans: | |||
Individually evaluated | 2,483 | 1,686 | |
Collectively evaluated | 153,532 | 170,879 | |
Total | 156,015 | 172,565 | |
Net loans | 155,811 | 172,325 | |
Acquired | Commercial real estate portfolio segment | Construction & land development | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 79 | 98 | 98 |
Provision | (29) | (19) | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | |
Ending balance | $ 50 | $ 79 | |
As percent of ALLL | 3.00% | 5.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 50 | 79 | |
Loans: | |||
Individually evaluated | 427 | 603 | |
Collectively evaluated | 8,577 | 13,518 | |
Total | 9,004 | 14,121 | |
Net loans | 8,954 | 14,042 | |
Acquired | Residential | Residential first mortgage | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 246 | 312 | 312 |
Provision | (33) | (70) | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 4 | |
Net (charge-offs) recoveries | 0 | 4 | |
Ending balance | $ 213 | $ 246 | |
As percent of ALLL | 14.00% | 14.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 213 | 246 | |
Loans: | |||
Individually evaluated | 2,560 | 2,750 | |
Collectively evaluated | 112,528 | 134,723 | |
Total | 115,088 | 137,473 | |
Net loans | 114,875 | 137,227 | |
Acquired | Residential | Residential junior mortgage | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 64 | 79 | 79 |
Provision | 49 | (20) | |
Charge-offs | (60) | 0 | |
Recoveries | 5 | 5 | |
Net (charge-offs) recoveries | (55) | 5 | |
Ending balance | $ 58 | $ 64 | |
As percent of ALLL | 4.00% | 4.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 58 | 64 | |
Loans: | |||
Individually evaluated | 221 | 233 | |
Collectively evaluated | 26,717 | 32,716 | |
Total | 26,938 | 32,949 | |
Net loans | 26,880 | 32,885 | |
Acquired | Residential | Residential construction | |||
Allowance for Loan Losses (ALLL): | |||
Beginning balance | 0 | $ 51 | 51 |
Provision | 34 | (51) | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | |
Ending balance | $ 34 | $ 0 | |
As percent of ALLL | 2.00% | 0.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 34 | 0 | |
Loans: | |||
Individually evaluated | 0 | 0 | |
Collectively evaluated | 250 | 0 | |
Total | 250 | 0 | |
Net loans | $ 216 | $ 0 |
Loans, Allowance for Loan Los_7
Loans, Allowance for Loan Losses, and Credit Quality - Nonaccrual loans by portfolio segment (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 9,238 | $ 5,471 |
Percent of total | 100.00% | 100.00% |
Percent of total loans | 0.40% | 0.20% |
Retail & other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 8 | $ 0 |
Percent of total | 0.00% | 0.00% |
Commercial portfolio segment | Commercial & industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 2,279 | $ 2,816 |
Percent of total | 25.00% | 52.00% |
Commercial portfolio segment | Owner-occupied CRE | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 2,302 | $ 673 |
Percent of total | 25.00% | 12.00% |
Commercial portfolio segment | AG production | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 1,251 | $ 0 |
Percent of total | 14.00% | 0.00% |
Commercial real estate portfolio segment | AG real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 846 | $ 164 |
Percent of total | 9.00% | 3.00% |
Commercial real estate portfolio segment | CRE investment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 1,111 | $ 210 |
Percent of total | 12.00% | 4.00% |
Commercial real estate portfolio segment | Construction & land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 0 | $ 80 |
Percent of total | 0.00% | 1.00% |
Residential | Residential first mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 865 | $ 1,265 |
Percent of total | 9.00% | 23.00% |
Residential | Residential junior mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 576 | $ 262 |
Percent of total | 6.00% | 5.00% |
Residential | Residential construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 0 | $ 1 |
Percent of total | 0.00% | 0.00% |
Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 5,076 | $ 1,409 |
Percent of total | 100.00% | 100.00% |
Percent of total loans | 55.00% | 26.00% |
Originated | Retail & other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 0 | $ 0 |
Percent of total | 0.00% | 0.00% |
Originated | Commercial portfolio segment | Commercial & industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 833 | $ 352 |
Percent of total | 16.00% | 25.00% |
Originated | Commercial portfolio segment | Owner-occupied CRE | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 1,792 | $ 362 |
Percent of total | 35.00% | 26.00% |
Originated | Commercial portfolio segment | AG production | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 1,095 | $ 0 |
Percent of total | 22.00% | 0.00% |
Originated | Commercial real estate portfolio segment | AG real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 635 | $ 0 |
Percent of total | 13.00% | 0.00% |
Originated | Commercial real estate portfolio segment | CRE investment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 0 | $ 0 |
Percent of total | 0.00% | 0.00% |
Originated | Commercial real estate portfolio segment | Construction & land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 0 | $ 0 |
Percent of total | 0.00% | 0.00% |
Originated | Residential | Residential first mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 458 | $ 629 |
Percent of total | 9.00% | 45.00% |
Originated | Residential | Residential junior mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 263 | $ 65 |
Percent of total | 5.00% | 4.00% |
Originated | Residential | Residential construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 0 | $ 1 |
Percent of total | 0.00% | 0.00% |
Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 4,162 | $ 4,062 |
Percent of total | 100.00% | 100.00% |
Percent of total loans | 45.00% | 74.00% |
Acquired | Retail & other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 8 | $ 0 |
Percent of total | 0.00% | 0.00% |
Acquired | Commercial portfolio segment | Commercial & industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 1,446 | $ 2,464 |
Percent of total | 35.00% | 61.00% |
Acquired | Commercial portfolio segment | Owner-occupied CRE | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 510 | $ 311 |
Percent of total | 12.00% | 8.00% |
Acquired | Commercial portfolio segment | AG production | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 156 | $ 0 |
Percent of total | 4.00% | 0.00% |
Acquired | Commercial real estate portfolio segment | AG real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 211 | $ 164 |
Percent of total | 5.00% | 4.00% |
Acquired | Commercial real estate portfolio segment | CRE investment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 1,111 | $ 210 |
Percent of total | 27.00% | 5.00% |
Acquired | Commercial real estate portfolio segment | Construction & land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 0 | $ 80 |
Percent of total | 0.00% | 2.00% |
Acquired | Residential | Residential first mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 407 | $ 636 |
Percent of total | 10.00% | 15.00% |
Acquired | Residential | Residential junior mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 313 | $ 197 |
Percent of total | 7.00% | 5.00% |
Acquired | Residential | Residential construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 0 | $ 0 |
Percent of total | 0.00% | 0.00% |
Loans, Allowance for Loan Los_8
Loans, Allowance for Loan Losses, and Credit Quality - Summary of loans by past due status (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 2,232,752 | $ 2,159,139 |
Total | $ 2,242,931 | $ 2,166,181 |
Percent of current loans | 99.60% | 99.70% |
Percent of total loans | 100.00% | 100.00% |
30-89 Days Past Due (accruing) | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | $ 941 | $ 1,571 |
Percent past due | 0.00% | 0.10% |
90 Days & Over or nonaccrual | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | $ 9,238 | $ 5,471 |
Percent past due | 0.40% | 0.20% |
Retail & other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 28,581 | $ 26,483 |
Total | 28,713 | 26,493 |
Retail & other | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 124 | 10 |
Retail & other | 90 Days & Over or nonaccrual | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 8 | 0 |
Commercial portfolio segment | Commercial & industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 761,248 | 682,104 |
Total | 763,742 | 684,920 |
Commercial portfolio segment | Commercial & industrial | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 215 | 0 |
Commercial portfolio segment | Commercial & industrial | 90 Days & Over or nonaccrual | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 2,279 | 2,816 |
Commercial portfolio segment | Owner-occupied CRE | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 454,206 | 440,123 |
Total | 456,508 | 441,353 |
Commercial portfolio segment | Owner-occupied CRE | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 557 |
Commercial portfolio segment | Owner-occupied CRE | 90 Days & Over or nonaccrual | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 2,302 | 673 |
Commercial portfolio segment | AG production | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 34,799 | 35,606 |
Total | 36,050 | 35,625 |
Commercial portfolio segment | AG production | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 19 |
Commercial portfolio segment | AG production | 90 Days & Over or nonaccrual | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 1,251 | 0 |
Commercial real estate portfolio segment | AG real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 57,745 | 53,245 |
Total | 58,591 | 53,444 |
Commercial real estate portfolio segment | AG real estate | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 35 |
Commercial real estate portfolio segment | AG real estate | 90 Days & Over or nonaccrual | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 846 | 164 |
Commercial real estate portfolio segment | CRE investment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 335,331 | 343,262 |
Total | 336,442 | 343,652 |
Commercial real estate portfolio segment | CRE investment | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 180 |
Commercial real estate portfolio segment | CRE investment | 90 Days & Over or nonaccrual | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 1,111 | 210 |
Commercial real estate portfolio segment | Construction & land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 61,810 | 80,519 |
Total | 61,810 | 80,599 |
Commercial real estate portfolio segment | Construction & land development | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 0 |
Commercial real estate portfolio segment | Construction & land development | 90 Days & Over or nonaccrual | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 80 |
Residential | Residential first mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 342,216 | 355,818 |
Total | 343,400 | 357,841 |
Residential | Residential first mortgage | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 319 | 758 |
Residential | Residential first mortgage | 90 Days & Over or nonaccrual | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 865 | 1,265 |
Residential | Residential junior mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 115,320 | 111,054 |
Total | 116,179 | 111,328 |
Residential | Residential junior mortgage | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 283 | 12 |
Residential | Residential junior mortgage | 90 Days & Over or nonaccrual | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 576 | 262 |
Residential | Residential construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 41,496 | 30,925 |
Total | 41,496 | 30,926 |
Residential | Residential construction | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 0 | 0 |
Residential | Residential construction | 90 Days & Over or nonaccrual | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | $ 0 | $ 1 |
Loans, Allowance for Loan Los_9
Loans, Allowance for Loan Losses, and Credit Quality - Summary of loans by credit quality indicator based on internally assigned credit grade (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 2,242,931 | $ 2,166,181 |
Percent of total loans | 100.00% | 100.00% |
Grades 1- 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 2,148,201 | $ 2,061,424 |
Percent of total loans | 95.80% | 95.10% |
Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 49,539 | $ 58,822 |
Percent of total loans | 2.20% | 2.70% |
Grade 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 9,169 | $ 18,607 |
Percent of total loans | 0.40% | 0.90% |
Grade 7 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 36,022 | $ 27,328 |
Percent of total loans | 1.60% | 1.30% |
Grade 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 0 | $ 0 |
Percent of total loans | 0.00% | 0.00% |
Grade 9 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 0 | $ 0 |
Percent of total loans | 0.00% | 0.00% |
Retail & other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 28,713 | $ 26,493 |
Retail & other | Grades 1- 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 28,705 | 26,493 |
Retail & other | Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Retail & other | Grade 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Retail & other | Grade 7 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 8 | 0 |
Retail & other | Grade 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Retail & other | Grade 9 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Commercial portfolio segment | Commercial & industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 763,742 | 684,920 |
Commercial portfolio segment | Commercial & industrial | Grades 1- 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 725,484 | 649,475 |
Commercial portfolio segment | Commercial & industrial | Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 22,299 | 16,145 |
Commercial portfolio segment | Commercial & industrial | Grade 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2,076 | 6,178 |
Commercial portfolio segment | Commercial & industrial | Grade 7 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 13,883 | 13,122 |
Commercial portfolio segment | Commercial & industrial | Grade 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Commercial portfolio segment | Commercial & industrial | Grade 9 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Commercial portfolio segment | Owner-occupied CRE | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 456,508 | 441,353 |
Commercial portfolio segment | Owner-occupied CRE | Grades 1- 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 428,332 | 405,198 |
Commercial portfolio segment | Owner-occupied CRE | Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 15,110 | 22,776 |
Commercial portfolio segment | Owner-occupied CRE | Grade 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 963 | 6,569 |
Commercial portfolio segment | Owner-occupied CRE | Grade 7 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 12,103 | 6,810 |
Commercial portfolio segment | Owner-occupied CRE | Grade 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Commercial portfolio segment | Owner-occupied CRE | Grade 9 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Commercial portfolio segment | AG production | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 36,050 | 35,625 |
Commercial portfolio segment | AG production | Grades 1- 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 27,350 | 29,363 |
Commercial portfolio segment | AG production | Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 4,044 | 3,302 |
Commercial portfolio segment | AG production | Grade 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,669 | 2,351 |
Commercial portfolio segment | AG production | Grade 7 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2,987 | 609 |
Commercial portfolio segment | AG production | Grade 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Commercial portfolio segment | AG production | Grade 9 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Commercial real estate portfolio segment | AG real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 58,591 | 53,444 |
Commercial real estate portfolio segment | AG real estate | Grades 1- 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 48,740 | 46,248 |
Commercial real estate portfolio segment | AG real estate | Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 4,077 | 3,246 |
Commercial real estate portfolio segment | AG real estate | Grade 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2,344 | 2,983 |
Commercial real estate portfolio segment | AG real estate | Grade 7 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,430 | 967 |
Commercial real estate portfolio segment | AG real estate | Grade 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Commercial real estate portfolio segment | AG real estate | Grade 9 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Commercial real estate portfolio segment | CRE investment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 336,442 | 343,652 |
Commercial real estate portfolio segment | CRE investment | Grades 1- 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 332,078 | 334,080 |
Commercial real estate portfolio segment | CRE investment | Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2,345 | 6,792 |
Commercial real estate portfolio segment | CRE investment | Grade 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 908 | 0 |
Commercial real estate portfolio segment | CRE investment | Grade 7 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,111 | 2,780 |
Commercial real estate portfolio segment | CRE investment | Grade 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Commercial real estate portfolio segment | CRE investment | Grade 9 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Commercial real estate portfolio segment | Construction & land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 61,810 | 80,599 |
Commercial real estate portfolio segment | Construction & land development | Grades 1- 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 61,794 | 75,365 |
Commercial real estate portfolio segment | Construction & land development | Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 5,138 |
Commercial real estate portfolio segment | Construction & land development | Grade 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 16 | 16 |
Commercial real estate portfolio segment | Construction & land development | Grade 7 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 80 |
Commercial real estate portfolio segment | Construction & land development | Grade 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Commercial real estate portfolio segment | Construction & land development | Grade 9 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Residential | Residential first mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 343,400 | 357,841 |
Residential | Residential first mortgage | Grades 1- 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 338,627 | 353,239 |
Residential | Residential first mortgage | Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,664 | 1,406 |
Residential | Residential first mortgage | Grade 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,193 | 510 |
Residential | Residential first mortgage | Grade 7 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,916 | 2,686 |
Residential | Residential first mortgage | Grade 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Residential | Residential first mortgage | Grade 9 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Residential | Residential junior mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 116,179 | 111,328 |
Residential | Residential junior mortgage | Grades 1- 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 115,595 | 111,037 |
Residential | Residential junior mortgage | Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 17 |
Residential | Residential junior mortgage | Grade 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Residential | Residential junior mortgage | Grade 7 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 584 | 274 |
Residential | Residential junior mortgage | Grade 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Residential | Residential junior mortgage | Grade 9 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Residential | Residential construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 41,496 | 30,926 |
Residential | Residential construction | Grades 1- 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 41,496 | 30,926 |
Residential | Residential construction | Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Residential | Residential construction | Grade 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Residential | Residential construction | Grade 7 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Residential | Residential construction | Grade 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Residential | Residential construction | Grade 9 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 0 | $ 0 |
Loans, Allowance for Loan Lo_10
Loans, Allowance for Loan Losses, and Credit Quality - Summary of information pertaining to impaired loans (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | $ 12,738 | $ 9,939 |
Unpaid Principal Balance | 15,503 | 16,021 |
Related Allowance | 427 | 0 |
Average Recorded Investment | 13,794 | 10,699 |
Interest Income Recognized | 1,033 | 1,199 |
Retail & other | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 12 | 12 |
Unpaid Principal Balance | 15 | 12 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 12 | 12 |
Interest Income Recognized | 3 | 1 |
Commercial portfolio segment | Commercial & industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 2,143 | 2,927 |
Unpaid Principal Balance | 4,271 | 6,736 |
Related Allowance | 308 | 0 |
Average Recorded Investment | 2,807 | 4,041 |
Interest Income Recognized | 739 | 660 |
Commercial portfolio segment | Owner-occupied CRE | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 2,552 | 1,506 |
Unpaid Principal Balance | 2,930 | 1,833 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 2,742 | 1,659 |
Interest Income Recognized | 170 | 137 |
Commercial portfolio segment | AG production | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 1,251 | 0 |
Unpaid Principal Balance | 1,263 | 0 |
Related Allowance | 119 | 0 |
Average Recorded Investment | 1,295 | 0 |
Interest Income Recognized | 12 | 0 |
Commercial real estate portfolio segment | AG real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 1,089 | 222 |
Unpaid Principal Balance | 1,091 | 281 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 1,098 | 238 |
Interest Income Recognized | 2 | 26 |
Commercial real estate portfolio segment | CRE investment | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 2,483 | 1,686 |
Unpaid Principal Balance | 2,490 | 2,484 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 2,524 | 1,606 |
Interest Income Recognized | 8 | 163 |
Commercial real estate portfolio segment | Construction & land development | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 427 | 603 |
Unpaid Principal Balance | 427 | 1,506 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 480 | 603 |
Interest Income Recognized | 0 | 21 |
Residential | Residential first mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 2,560 | 2,750 |
Unpaid Principal Balance | 2,785 | 2,907 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 2,611 | 2,478 |
Interest Income Recognized | 97 | 176 |
Residential | Residential junior mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 221 | 233 |
Unpaid Principal Balance | 231 | 262 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 225 | 62 |
Interest Income Recognized | 2 | 15 |
Residential | Residential construction | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Originated | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 4,487 | 548 |
Unpaid Principal Balance | 4,707 | 548 |
Related Allowance | 427 | 0 |
Average Recorded Investment | 4,649 | 899 |
Interest Income Recognized | 176 | 154 |
Acquired | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 8,251 | 9,391 |
Unpaid Principal Balance | 10,796 | 15,473 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 9,145 | 9,800 |
Interest Income Recognized | $ 857 | $ 1,045 |
Loans, Allowance for Loan Lo_11
Loans, Allowance for Loan Losses, and Credit Quality - Summary of Non-accretable discount on purchase credit impaired ("PCI") loans (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Accretion Discount [Roll Forward] | |||
Balance at beginning of period | $ 6,408 | $ 9,471 | $ 9,471 |
Accretion to loan interest income | (3,293) | (1,872) | (1,976) |
Transferred to accretable | 0 | (513) | (990) |
Disposals of loans | (660) | (97) | (97) |
Balance at end of period | $ 2,455 | $ 6,989 | $ 6,408 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles and Mortgage Servicing Rights - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 107,366 | $ 107,366 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles and Mortgage Servicing Rights - Goodwill and other intangibles (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | $ 107,366 | $ 107,366 |
Other intangibles | 14,005 | 16,941 |
Goodwill and other intangibles, net | 121,371 | 124,307 |
Core deposit intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles | 10,006 | 12,562 |
Customer list intangibles: | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles | $ 3,999 | $ 4,379 |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles and Mortgage Servicing Rights - Other intangible assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Net book value | $ 14,005 | $ 14,005 | $ 16,941 | ||
Amortization during the period | 914 | $ 1,054 | 2,936 | $ 3,336 | |
Core deposit intangibles: | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 29,015 | 29,015 | 29,015 | ||
Accumulated amortization | (19,009) | (19,009) | (16,453) | ||
Net book value | 10,006 | 10,006 | 12,562 | ||
Additions during the period | 0 | 0 | |||
Amortization during the period | 2,556 | 3,915 | |||
Customer list intangibles: | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 5,523 | 5,523 | 5,523 | ||
Accumulated amortization | (1,524) | (1,524) | (1,144) | ||
Net book value | $ 3,999 | 3,999 | 4,379 | ||
Additions during the period | 0 | 290 | |||
Amortization during the period | $ 380 | $ 474 |
Goodwill and Other Intangible_6
Goodwill and Other Intangibles and Mortgage Servicing Rights - Mortgage servicing rights (Details) - Mortgage Servicing Rights - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Mortgage servicing rights (MSR) asset: | ||
MSR asset at beginning of year | $ 3,749 | $ 3,187 |
Capitalized MSR | 1,807 | 1,203 |
Amortization during the period | (611) | (641) |
MSR asset at end of period | 4,945 | 3,749 |
Fair value of MSR asset at end of period | 6,960 | 6,347 |
Residential mortgage loans serviced for others | $ 721,569 | $ 603,446 |
Net book value of MSR asset to loans serviced for others | 0.69% | 0.62% |
Goodwill and Other Intangible_7
Goodwill and Other Intangibles and Mortgage Servicing Rights - Estimated future amortization expense (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Net book value | $ 14,005 | $ 16,941 |
Core deposit intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
2019 (remaining three months) | 781 | |
2020 | 2,657 | |
2021 | 2,167 | |
2022 | 1,735 | |
2023 | 1,273 | |
2024 | 841 | |
Thereafter | 552 | |
Net book value | 10,006 | 12,562 |
Customer list intangibles: | ||
Finite-Lived Intangible Assets [Line Items] | ||
2019 (remaining three months) | 127 | |
2020 | 507 | |
2021 | 507 | |
2022 | 507 | |
2023 | 483 | |
2024 | 449 | |
Thereafter | 1,419 | |
Net book value | 3,999 | $ 4,379 |
MSR asset | ||
Finite-Lived Intangible Assets [Line Items] | ||
2019 (remaining three months) | 224 | |
2020 | 879 | |
2021 | 730 | |
2022 | 730 | |
2023 | 658 | |
2024 | 400 | |
Thereafter | 1,324 | |
Net book value | $ 4,945 |
Short and Long-Term Borrowings-
Short and Long-Term Borrowings-Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2015 | Dec. 31, 2018 | |
Debt Instrument | |||
Trust preferred securities qualify as Tier1 capital | $ 29,300,000 | $ 28,900,000 | |
Aggregate amount of subordinated notes | $ 38,249,000 | ||
FHLB advances | |||
Debt Instrument | |||
FHLB weighted average interest rate | 1.95% | 1.72% | |
Repayment of puttable FHLB advance | $ 20,000,000 | ||
Subordinated notes | |||
Debt Instrument | |||
Aggregate amount of subordinated notes | $ 12,000,000 | ||
Note term | 10 years | ||
Stated interest rate | 5.00% |
Short and Long-Term Borrowing_2
Short and Long-Term Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument | ||
Long-term borrowings | $ 57,495 | $ 77,305 |
Percent of fixed rate long-term borrowings | 58.00% | 69.00% |
Percent of floating rate long-term borrowings | 42.00% | 31.00% |
FHLB advances | ||
Debt Instrument | ||
Long-term borrowings | $ 15,056 | $ 35,252 |
Junior subordinated debentures | ||
Debt Instrument | ||
Subordinated debt | 30,455 | 30,096 |
Subordinated notes | ||
Debt Instrument | ||
Subordinated debt | $ 11,984 | $ 11,957 |
Short and Long-Term Borrowing_3
Short and Long-Term Borrowings Junior Subordinated Debentures (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Junior Subordinated Debentures | ||
Par | $ 38,249,000 | |
Unamortized Discount | (7,794,000) | |
Carrying value | 30,455,000 | $ 30,096,000 |
2005 Mid-Wisconsin Financial Services, Inc. | ||
Junior Subordinated Debentures | ||
Par | 10,310,000 | |
Unamortized Discount | (3,222,000) | |
Carrying value | $ 7,088,000 | $ 6,939,000 |
Stated interest rate | 3.55% | 4.22% |
2006 Baylake Corp. | ||
Junior Subordinated Debentures | ||
Par | $ 16,598,000 | |
Unamortized Discount | (3,942,000) | |
Carrying value | $ 12,656,000 | $ 12,478,000 |
Stated interest rate | 3.45% | 4.15% |
2004 First Menasha Bancshares, Inc. | ||
Junior Subordinated Debentures | ||
Par | $ 5,155,000 | |
Unamortized Discount | (630,000) | |
Carrying value | $ 4,525,000 | $ 4,493,000 |
Stated interest rate | 4.93% | 5.58% |
2004 Nicolet Bankshares Statutory Trust | ||
Junior Subordinated Debentures | ||
Par | $ 6,186,000 | |
Unamortized Discount | 0 | |
Carrying value | $ 6,186,000 | $ 6,186,000 |
Stated interest rate | 8.00% | |
London Interbank Offered Rate (LIBOR) | 2005 Mid-Wisconsin Financial Services, Inc. | ||
Junior Subordinated Debentures | ||
Floating interest rate | 1.43% | |
London Interbank Offered Rate (LIBOR) | 2006 Baylake Corp. | ||
Junior Subordinated Debentures | ||
Floating interest rate | 1.35% | |
London Interbank Offered Rate (LIBOR) | 2004 First Menasha Bancshares, Inc. | ||
Junior Subordinated Debentures | ||
Floating interest rate | 2.79% |
Fair Value Measurements - Measu
Fair Value Measurements - Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 419,300 | $ 400,144 |
U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 16,490 | 21,649 |
State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 147,786 | 160,526 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 171,877 | 131,644 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 83,147 | 86,325 |
Fair Value Measurements Using Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair Value Measurements Using Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 416,470 | 391,654 |
Fair Value Measurements Using Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2,830 | 8,490 |
Recurring basis fair value measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 419,300 | 400,144 |
Recurring basis fair value measurements | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 16,490 | 21,649 |
Recurring basis fair value measurements | State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 147,786 | 160,526 |
Recurring basis fair value measurements | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 171,877 | 131,644 |
Recurring basis fair value measurements | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 83,147 | 86,325 |
Recurring basis fair value measurements | Other investments (equity securities) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments (equity securities) | 4,080 | 2,650 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 1 | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 1 | State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 1 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 1 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 1 | Other investments (equity securities) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments (equity securities) | 4,080 | 2,650 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 416,470 | 391,654 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 2 | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 16,490 | 21,649 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 2 | State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 147,786 | 160,460 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 2 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 171,877 | 131,644 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 2 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 80,317 | 77,901 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 2 | Other investments (equity securities) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments (equity securities) | 0 | 0 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2,830 | 8,490 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 3 | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 3 | State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 66 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 3 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 3 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2,830 | 8,424 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 3 | Other investments (equity securities) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments (equity securities) | $ 0 | $ 0 |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Level 3 assets measured at fair value on a recurring basis (Details) - Available-for-sale Securities - Level 3 - Recurring basis fair value measurements - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Level 3 Fair Value Measurements: | ||
Balance at beginning of year | $ 8,490 | $ 9,151 |
Paydowns/Sales/Settlements | (5,660) | (661) |
Balance at end of period | $ 2,830 | $ 8,490 |
Fair Value Measurements - Mea_2
Fair Value Measurements - Measured at Fair Value on Nonrecurring Basis (Details) - Measured at Fair Value on a Nonrecurring Basis - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 12,311 | $ 9,939 |
Other real estate owned (“OREO”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 1,325 | 420 |
MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 6,960 | 6,347 |
Fair Value Measurements Using Level 1 | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Fair Value Measurements Using Level 1 | Other real estate owned (“OREO”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Fair Value Measurements Using Level 1 | MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Fair Value Measurements Using Level 2 | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Fair Value Measurements Using Level 2 | Other real estate owned (“OREO”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Fair Value Measurements Using Level 2 | MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Fair Value Measurements Using Level 3 | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 12,311 | 9,939 |
Fair Value Measurements Using Level 3 | Other real estate owned (“OREO”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 1,325 | 420 |
Fair Value Measurements Using Level 3 | MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 6,960 | $ 6,347 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of carrying amounts and estimated fair values of financial instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financial assets: | ||
Securities AFS | $ 419,300 | $ 400,144 |
Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 143,969 | 249,526 |
Certificates of deposit in other banks | 0 | 0 |
Securities AFS | 0 | 0 |
Other investments, including equity securities | 4,080 | 2,650 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
BOLI | 71,796 | 66,310 |
MSR asset | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Long-term borrowings | 0 | 0 |
Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposit in other banks | 5,390 | 993 |
Securities AFS | 416,470 | 391,654 |
Other investments, including equity securities | 13,259 | 13,189 |
Loans held for sale | 10,710 | 1,662 |
Loans, net | 0 | 0 |
BOLI | 0 | 0 |
MSR asset | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Long-term borrowings | 15,135 | 34,907 |
Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposit in other banks | 0 | 0 |
Securities AFS | 2,830 | 8,490 |
Other investments, including equity securities | 3,358 | 2,158 |
Loans held for sale | 0 | 0 |
Loans, net | 2,244,410 | 2,139,322 |
BOLI | 0 | 0 |
MSR asset | 6,960 | 6,347 |
Financial liabilities: | ||
Deposits | 2,584,662 | 2,614,995 |
Long-term borrowings | 41,544 | 41,016 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 143,969 | 249,526 |
Certificates of deposit in other banks | 5,395 | 993 |
Securities AFS | 419,300 | 400,144 |
Other investments, including equity securities | 20,697 | 17,997 |
Loans held for sale | 10,564 | 1,639 |
Loans, net | 2,229,311 | 2,153,028 |
BOLI | 71,796 | 66,310 |
MSR asset | 4,945 | 3,749 |
Financial liabilities: | ||
Deposits | 2,584,447 | 2,614,138 |
Long-term borrowings | 57,495 | 77,305 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 143,969 | 249,526 |
Certificates of deposit in other banks | 5,390 | 993 |
Securities AFS | 419,300 | 400,144 |
Other investments, including equity securities | 20,697 | 17,997 |
Loans held for sale | 10,710 | 1,662 |
Loans, net | 2,244,410 | 2,139,322 |
BOLI | 71,796 | 66,310 |
MSR asset | 6,960 | 6,347 |
Financial liabilities: | ||
Deposits | 2,584,662 | 2,614,995 |
Long-term borrowings | $ 56,679 | $ 75,923 |
Operating Leases - Narrative (D
Operating Leases - Narrative (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms of operating leases | 2 years |
Extension terms of operating leases | 5 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms of operating leases | 7 years |
Extension terms of operating leases | 10 years |
Operating Leases - Operating Le
Operating Leases - Operating Lease Cost (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Net lease cost: | |
Operating lease cost | $ 737 |
Variable lease cost | 179 |
Net lease cost | $ 916 |
Selected other operating lease information: | |
Weighted average remaining lease term (years) | 5 years |
Weighted average discount rate | 2.50% |
Operating Leases - Operating _2
Operating Leases - Operating Lease Maturity Schedule (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2019 (remaining three months) | $ 951 | |
2020 | 1,037 | |
2021 | 911 | |
2022 | 851 | |
2023 | 607 | |
2024 | 499 | |
Thereafter | 16 | |
Total future minimum lease payments | 4,872 | |
Less: amount representing interest | (122) | |
Present value of net future minimum lease payments | $ 4,750 | $ 5,000 |