Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 27, 2020 | Jun. 30, 2019 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | NICOLET BANKSHARES INC | ||
Entity Central Index Key | 0001174850 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding | 10,495,311 | ||
Entity Public Float | $ 505.1 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Amendment Flag | false | ||
Entity Small Business | false | ||
Entity Emerging Growth | false | ||
Entity Shell Company | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets | |||
Cash and due from banks | $ 75,433 | $ 85,896 | |
Interest-earning deposits | 106,626 | 163,630 | |
Federal funds sold | 0 | 0 | |
Cash and cash equivalents | [1] | 182,059 | 249,526 |
Certificates of deposit in other banks | 19,305 | 993 | |
Securities available for sale (“AFS”), at fair value | 449,302 | 400,144 | |
Other investments | 24,072 | 17,997 | |
Loans held for sale | 2,706 | 1,639 | |
Loans | 2,573,751 | 2,166,181 | |
Allowance for loan losses | (13,972) | (13,153) | |
Loans, net | 2,559,779 | 2,153,028 | |
Premises and equipment, net | 56,469 | 48,173 | |
Bank owned life insurance (“BOLI”) | 78,140 | 66,310 | |
Goodwill and other intangibles, net | 165,967 | 124,307 | |
Accrued interest receivable and other assets | 39,461 | 34,418 | |
Total assets | 3,577,260 | 3,096,535 | |
Liabilities: | |||
Noninterest-bearing demand deposits | 819,055 | 753,065 | |
Interest-bearing deposits | 2,135,398 | 1,861,073 | |
Total deposits | 2,954,453 | 2,614,138 | |
Short-term borrowings | 0 | 0 | |
Long-term borrowings | 67,629 | 77,305 | |
Accrued interest payable and other liabilities | 38,188 | 17,740 | |
Total liabilities | 3,060,270 | 2,709,183 | |
Stockholders’ Equity: | |||
Common stock | 106 | 95 | |
Additional paid-in capital | 312,733 | 247,790 | |
Retained earnings | 199,005 | 144,364 | |
Accumulated other comprehensive income (loss) | 4,418 | (5,640) | |
Total Nicolet Bankshares, Inc. stockholders’ equity | 516,262 | 386,609 | |
Noncontrolling interest | 728 | 743 | |
Total stockholders’ equity and noncontrolling interest | 516,990 | 387,352 | |
Total liabilities, noncontrolling interest and stockholders’ equity | $ 3,577,260 | $ 3,096,535 | |
Preferred shares authorized (no par value) (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) | 10,587,738 | 9,495,265 | |
Common shares issued (in shares) | 10,610,259 | 9,524,777 | |
[1] | Cash and cash equivalents include restricted cash of $6.0 million, $6.3 million, and $5.4 million at December 31, 2019, 2018, and 2017, respectively, for the reserve balance required with the Federal Reserve Bank. At December 31, 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 | Dec. 31, 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 | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest income: | |||
Loans, including loan fees | $ 125,524 | $ 113,953 | $ 100,541 |
Investment securities: | |||
Taxable | 7,584 | 6,068 | 4,728 |
Tax-exempt | 2,075 | 2,296 | 2,360 |
Other interest income | 3,405 | 3,220 | 1,624 |
Total interest income | 138,588 | 125,537 | 109,253 |
Interest expense: | |||
Deposits | 18,965 | 15,420 | 7,686 |
Short-term borrowings | 5 | 9 | 84 |
Long-term borrowings | 3,540 | 3,460 | 2,741 |
Total interest expense | 22,510 | 18,889 | 10,511 |
Net interest income | 116,078 | 106,648 | 98,742 |
Provision for loan losses | 1,200 | 1,600 | 2,325 |
Net interest income after provision for loan losses | 114,878 | 105,048 | 96,417 |
Noninterest income: | |||
Mortgage income, net | 11,878 | 6,344 | 5,361 |
BOLI income | 2,369 | 2,418 | 1,778 |
Asset gains (losses), net | 7,897 | 1,169 | 2,029 |
Other income | 5,559 | 5,528 | 4,454 |
Total noninterest income | 53,367 | 39,509 | 34,639 |
Noninterest expense: | |||
Personnel | 54,437 | 49,476 | 44,458 |
Occupancy, equipment and office | 14,788 | 14,574 | 13,308 |
Business development and marketing | 5,685 | 5,324 | 4,700 |
Data processing | 9,950 | 9,514 | 8,715 |
Intangibles amortization | 3,872 | 4,389 | 4,695 |
Other expense | 8,067 | 6,481 | 5,480 |
Total noninterest expense | 96,799 | 89,758 | 81,356 |
Income before income tax expense | 71,446 | 54,799 | 49,700 |
Income tax expense | 16,458 | 13,446 | 16,267 |
Net income | 54,988 | 41,353 | 33,433 |
Less: Net income attributable to noncontrolling interest | 347 | 317 | 283 |
Net income attributable to Nicolet Bankshares, Inc. | $ 54,641 | $ 41,036 | $ 33,150 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 5.71 | $ 4.26 | $ 3.51 |
Diluted (in dollars per share) | $ 5.52 | $ 4.12 | $ 3.33 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 9,561,978 | 9,640,258 | 9,439,951 |
Diluted (in shares) | 9,900,319 | 9,956,353 | 9,958,160 |
Trust services fee income | |||
Noninterest income: | |||
Fees and commisions | $ 6,227 | $ 6,498 | $ 6,031 |
Brokerage fee income | |||
Noninterest income: | |||
Fees and commisions | 8,115 | 7,042 | 5,736 |
Service charges on deposit accounts | |||
Noninterest income: | |||
Fees and commisions | 4,824 | 4,845 | 4,604 |
Card interchange income | |||
Noninterest income: | |||
Fees and commisions | $ 6,498 | $ 5,665 | $ 4,646 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 54,988 | $ 41,353 | $ 33,433 |
Unrealized gains (losses) on securities AFS: | |||
Net unrealized holding gains (losses) arising during the period | 13,758 | (3,715) | 2,752 |
Reclassification adjustment for net (gains) losses included in net income | 22 | 212 | (1,220) |
Income tax (expense) benefit | (3,722) | 946 | (598) |
Total other comprehensive income (loss), net of tax | 10,058 | (2,557) | 934 |
Comprehensive income | $ 65,046 | $ 38,796 | $ 34,367 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non- controlling Interest |
Balance at Dec. 31, 2016 | $ 276,365 | $ 86 | $ 209,700 | $ 68,888 | $ (2,727) | $ 418 |
Comprehensive income: | ||||||
Net income | 33,433 | 33,150 | 283 | |||
Other comprehensive income (loss) | 934 | 934 | ||||
Stock-based compensation expense | 3,064 | 3,064 | ||||
Exercise of stock options, net | 3,801 | 2 | 3,799 | |||
Issuance of common stock in acquisitions, net of capitalized issuance costs | 62,060 | 13 | 62,047 | |||
Issuance of common stock | 229 | 229 | ||||
Purchase and retirement of common stock | (15,007) | (3) | (15,004) | |||
Reclassification of stranded tax effects in accumulated other comprehensive income | 0 | 353 | (353) | |||
Balance at Dec. 31, 2017 | 364,879 | 98 | 263,835 | 102,391 | (2,146) | 701 |
Comprehensive income: | ||||||
Net income | 41,353 | 41,036 | 317 | |||
Other comprehensive income (loss) | (2,557) | (2,557) | ||||
Stock-based compensation expense | 4,901 | 4,901 | ||||
Exercise of stock options, net | 1,518 | 1 | 1,517 | |||
Issuance of common stock | 282 | 282 | ||||
Purchase and retirement of common stock | (22,749) | (4) | (22,745) | |||
Distribution to noncontrolling interest | (275) | (275) | ||||
Balance at Dec. 31, 2018 | 387,352 | 95 | 247,790 | 144,364 | (5,640) | 743 |
Comprehensive income: | ||||||
Net income | 54,988 | 54,641 | 347 | |||
Other comprehensive income (loss) | 10,058 | 10,058 | ||||
Stock-based compensation expense | 5,038 | 5,038 | ||||
Exercise of stock options, net | 8,150 | 3 | 8,147 | |||
Issuance of common stock in acquisitions, net of capitalized issuance costs | 79,634 | 12 | 79,622 | |||
Issuance of common stock | 592 | 592 | ||||
Purchase and retirement of common stock | (28,460) | (4) | (28,456) | |||
Distribution to noncontrolling interest | (362) | (362) | ||||
Balance at Dec. 31, 2019 | $ 516,990 | $ 106 | $ 312,733 | $ 199,005 | $ 4,418 | $ 728 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Capitalized issuance costs | $ 163 | $ 186 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Cash Flows From Operating Activities: | ||||||
Net income | $ 54,988 | $ 41,353 | $ 33,433 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation, amortization and accretion | 7,311 | 6,282 | 7,067 | |||
Provision for loan losses | 1,200 | 1,600 | 2,325 | |||
Provision for deferred taxes | (2,652) | (1,521) | 6,962 | |||
Increase in cash surrender value of life insurance | (1,967) | (1,857) | (1,778) | |||
Stock-based compensation expense | 5,038 | 4,901 | 3,064 | |||
Assets (gains) losses, net | (7,897) | (1,169) | (2,029) | |||
Gain on sale of loans held for sale, net | (11,244) | (5,499) | (4,777) | |||
Proceeds from sale of loans held for sale | 425,530 | 241,739 | 222,879 | |||
Origination of loans held for sale | (418,229) | (234,416) | (219,696) | |||
Net change in accrued interest receivable and other assets | (2,951) | (666) | (5,360) | |||
Net change in accrued interest payable and other liabilities | 9,010 | 242 | (1,377) | |||
Net cash provided by operating activities | 58,137 | 50,989 | 40,713 | |||
Cash Flows From Investing Activities: | ||||||
Net (increase) decrease in certificates of deposit in other banks | (1,924) | 753 | 2,238 | |||
Purchases of securities AFS | (95,627) | (76,564) | (63,117) | |||
Proceeds from sales of securities AFS | 23,405 | 5,280 | 10,798 | |||
Proceeds from calls and maturities of securities AFS | 53,933 | 66,706 | 47,569 | |||
Net (increase) decrease in loans | (57,156) | (71,629) | (160,624) | |||
Purchases of other investments | (2,669) | (1,550) | (3,320) | |||
Proceeds from sales of other investments | 17,144 | 807 | 6,678 | |||
Net increases in premises and equipment | (4,392) | (4,260) | (2,018) | |||
Proceeds from sales of other real estate and other assets | 457 | 2,824 | 1,724 | |||
Purchase of BOLI | (5,000) | 0 | ||||
Proceeds from redemption of BOLI | 1,348 | 561 | ||||
Net cash received in business combinations | 7,331 | 0 | 9,119 | |||
Net cash provided by (used in) investing activities | (63,150) | (77,072) | (150,953) | |||
Cash Flows From Financing Activities: | ||||||
Net increase in deposits | 49,259 | 143,153 | 126,782 | |||
Net decrease in short-term borrowings | (4,233) | 0 | 0 | |||
Proceeds from long-term borrowings | 0 | 0 | 30,000 | |||
Repayments of long-term borrowings | (87,237) | (1,253) | (9,549) | |||
Distribution to noncontrolling interest | (362) | (275) | 0 | |||
Capitalized issuance costs, net | (163) | 0 | (186) | |||
Purchase and retirement of common stock | 28,460 | 22,749 | 15,007 | |||
Proceeds from issuance of common stock, net | 8,742 | 1,800 | 4,030 | |||
Net cash provided by (used in) financing activities | (62,454) | 120,676 | 136,070 | |||
Net increase (decrease) in cash and cash equivalents | (67,467) | 94,593 | 25,830 | |||
Cash and cash equivalents: | ||||||
Beginning cash and cash equivalents | 249,526 | [1] | 154,933 | [1] | 129,103 | |
Ending cash and cash equivalents | [1] | 182,059 | 249,526 | 154,933 | ||
Supplemental Disclosures of Cash Flow Information: | ||||||
Cash paid for interest | 22,334 | 18,537 | 10,932 | |||
Cash paid for taxes | 16,140 | 10,821 | 12,789 | |||
Transfer of loans and bank premises to other real estate owned | 1,025 | 607 | 828 | |||
Capitalized mortgage servicing rights | 2,876 | 1,203 | 876 | |||
Transfer of loans from held for sale to held for investment | 0 | 0 | 3,236 | |||
Acquisitions: | ||||||
Fair value of assets acquired | 412,000 | 0 | 439,000 | |||
Fair value of liabilities assumed | 377,000 | 0 | 398,000 | |||
Net assets acquired | 35,000 | 0 | 41,000 | |||
Common stock issued in acquisitions | $ 79,797 | $ 0 | $ 62,246 | |||
[1] | Cash and cash equivalents include restricted cash of $6.0 million, $6.3 million, and $5.4 million at December 31, 2019, 2018, and 2017, respectively, for the reserve balance required with the Federal Reserve Bank. At December 31, 2019, cash and cash equivalents also includes restricted cash of $1.3 million pledged as collateral on interest rate swaps. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Cash Flows [Abstract] | |||
Restricted cash | $ 6 | $ 6.3 | $ 5.4 |
Restricted cash pledged as collateral | $ 1.3 |
NATURE OF BUSINESS AND SIGNIFIC
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Nature of Banking Activities and Subsidiaries : Nicolet Bankshares, Inc. (the “Company” or “Nicolet”) was incorporated on April 5, 2000, to serve as the holding company and sole shareholder of Nicolet National Bank (the “Bank”). The Bank opened for business on November 1, 2000. Since its opening in late 2000, Nicolet has supplemented its organic growth with branch purchase and acquisition transactions. See Note 2 for additional information on the Company’s recent acquisitions. The Company partnered with Nicolet Joint Ventures, LLC (the “JV”), a real estate development and investment firm (the “Firm”), to develop and own the Company’s headquarters facility. The Firm is considered a related party, as one of its principals is a Board member and shareholder of the Company. The JV involves a 50% ownership by the Company. See Note 14 for additional related party disclosures. The Company also owns Brookfield Investment Partners, LLC (“Brookfield Investments”), a wholly owned investment advisory firm that provides investment strategy and transactional services to financial institutions. During late 2016, the Company formed Nicolet Advisory Services, LLC (“Nicolet Advisory”), a wholly owned registered investment advisor subsidiary that provides brokerage and investment advisory services to customers. During 2019, the Bank liquidated a portion of its equity interest in United Financial Services, LLC (“LLC”), a data processing and e-banking entity. Prior to the partial liquidation, the Bank owned a 49.8% indirect interest in LLC through its stock ownership of United Financial Services, Inc. (“INC”), collectively referred to as “UFS”. In May 2019, LLC sold membership units to various community banks through a private placement offering, with the full proceeds used to redeem a portion of the membership units held in INC. In turn, INC used the full proceeds net of tax to redeem 80% of the shares of its stock owned by Nicolet, and Nicolet recognized an after-tax gain of $7.4 million on the partial sale. Given the level of control, the investment in UFS is carried in other assets under the equity method of accounting. The carrying value of the Bank’s investment in UFS was $2.8 million and $11.5 million at December 31, 2019 and 2018 , respectively. The Bank’s pro rata share of UFS income is included in other noninterest income, and was $0.9 million , $1.8 million , and $1.3 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Amounts paid to UFS for data processing services by the Bank were $3.2 million , $2.8 million , and $2.6 million in 2019 , 2018 , and 2017 , respectively. Principles of Consolidation : The consolidated financial statements of the Company include the accounts of the Bank, Brookfield Investments, Nicolet Advisory and the JV. The JV underlies the noncontrolling interest reflected in the consolidated financial statements. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and conform to general practices within the banking industry. All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements. Results of operations of companies purchased, if any, are included from the date of acquisition. Operating Segment: The consolidated income of the Company is derived principally from the Bank, which conducts lending (primarily commercial-based loans, as well as residential and consumer loans) and deposit gathering (including other banking- and deposit-related products and services, such as ATMs, safe deposit boxes, check cashing, wires, and debit cards) to businesses, consumers and governmental units principally in its trade area of northeastern and central Wisconsin, and Menominee, Michigan, trust services, brokerage services (delivered through the Bank and Nicolet Advisory), and the support to deliver, fund and manage all such banking and wealth management services to its customer base. The individual contributions of the JV, Brookfield Investments and Nicolet Advisory were not significant to the consolidated balance sheet or net income for 2019 , 2018 , or 2017 . While the chief operating decision makers monitor the revenue streams of the various products and services, and evaluate costs, balance sheet positions and quality, all such products, services and activities are directly or indirectly related to the business of community banking, with no regular, formal or material segment delineations. Operations are managed and financial performance is evaluated on a company-wide basis, and accordingly, all the financial service operations are considered by management to be aggregated in one reportable operating segment. Use of 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, 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. Business Combinations: The Company accounts for business combinations under the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations (“ASC 805”). The Company recognizes the full fair value of the assets acquired and liabilities assumed and immediately expenses transaction costs. There is no separate recognition of the acquired allowance for loan losses on the acquirer’s balance sheet as credit related factors are incorporated directly into the fair value of the net tangible and intangible assets acquired. If the amount of consideration exceeds the fair value of assets purchased less the fair value of liabilities assumed, goodwill is recorded. Alternatively, if the amount by which the fair value of assets purchased exceeds the fair value of liabilities assumed and consideration paid, a gain (“bargain purchase gain”) is recorded. Fair values are subject to refinement for up to one year after the closing date of an acquisition as information relative to closing date fair values becomes available. Results of operations of the acquired business are included in the statements of income from the effective date of the acquisition. Additional information regarding recent acquisitions is provided in Note 2 . Cash and Cash Equivalents : For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash and due from banks, interest-earning deposits in other banks with original maturities of less than 90 days, if any, and federal funds sold. The Bank maintains amounts in due from banks which, at times, may exceed federally insured limits. Management monitors these correspondent relationships. The Bank has not experienced any losses in such accounts. The Bank may have restrictions on cash and due from banks as it is required to maintain certain vault cash and reserve balances with the Federal Reserve Bank to meet specific reserve requirements. At December 31, 2019 and 2018 , the reserve balance required with the Federal Reserve Bank approximated $6.0 million and $6.3 million , respectively, of which there was sufficient cash to cover the reserve requirement. In addition, cash and cash equivalents includes restricted cash of $1.3 million pledged as collateral on an interest rate swap. Securities Available for Sale : Securities classified as AFS are those securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity, and includes U.S. government agency securities; state, county and municipal securities; mortgage-backed securities; and corporate debt securities. Effective January 1, 2018, the Company adopted a new accounting standard, which requires equity securities with readily determinable fair values to be measured at fair value with changes in the fair value recognized through net income (see Recent Accounting Pronouncements Adopted within Note 1 for the impact of this new accounting guidance). Such securities are no longer reflected as securities AFS, and are now reflected within other investments on the consolidated balance sheets. Prior periods have not been restated for the impact of this accounting change. Any decision to sell a security classified as AFS would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. Securities classified as AFS are carried at fair value, with unrealized gains or losses, net of related deferred income taxes, reported as increases or decreases in accumulated other comprehensive income. Realized gains or losses on sales of securities AFS (using the specific identification method) and declines in value judged to be other-than-temporary are included in the consolidated statements of income under asset gains (losses), net. Premiums and discounts are amortized or accreted into interest income over the life of the related securities using the effective interest method. See Note 3 for additional disclosures on AFS securities. Management evaluates securities AFS for other-than-temporary impairment on a quarterly basis. A decline in the market value of any investment below amortized cost that is deemed other-than-temporary is charged to earnings for the decline in value deemed to be credit related and a new cost basis in the security is established. The decline in value attributed to non-credit related factors considered temporary in nature is recognized in other comprehensive income. In evaluating other-than-temporary impairment, management considers the length of time and extent to which the fair value has been less than cost, and the financial condition and near-term prospects of the issuer for a period sufficient to allow for any anticipated recovery in fair value in the near term. Other Investments : Other investments include equity securities with readily determinable fair values, “restricted” equity securities, and private company securities. At December 31, 2019 , other investments included $3.4 million of equity securities with readily determinable fair values, $16.8 million of "restricted" equity securities, and $3.9 million of private company securities. As a member of the Federal Reserve Bank System, Federal Agricultural Mortgage Corporation, and the Federal Home Loan Bank (“FHLB”) System, the Bank is required to maintain an investment in the capital stock of these entities. These equity securities are “restricted” in that they can only be sold back to the respective institutions or another member institution at par. Therefore, they are less liquid than other exchange traded equity securities. As no ready market exists for these stocks, and they have no quoted market value, these investments are carried at cost. Also included are investments in other private companies that do not have quoted market prices, which are carried at cost less other-than-temporary impairment charges, if any. Management’s evaluation of these other investments for impairment includes consideration of the financial condition and other available relevant information of the issuer. Loans Held for Sale : Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value as determined on an aggregate basis and generally consist of current production of certain fixed-rate residential first mortgages. The amount by which cost exceeds market value is recorded as a valuation allowance and charged to earnings. Changes, if any, in the valuation allowance are also included in earnings in the period in which the change occurs. As of December 31, 2019 and 2018 , no valuation allowance was necessary. Loans held for sale may be sold servicing retained or servicing released, and are generally sold without recourse. The carrying value of mortgage loans sold with servicing retained is reduced by the amount allocated to the servicing right at the time of sale. Gains and losses on sales of mortgage loans held for sale are included in earnings in mortgage income, net. Loans and Allowance for Loan Losses (“ALLL”) – Originated Loans : Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are carried at their principal amount outstanding, net of deferred loan fees and costs. Interest income is accrued on the unpaid principal balance using the simple interest method. The accrual of interest income on loans is discontinued when, in the opinion of management, there is reasonable doubt as to the borrower’s ability to meet payment of interest or principal when due. Loans are generally placed on nonaccrual status when contractually past due 90 days or more as to interest or principal, though may be placed in such status earlier based on the circumstances. Loans past due 90 days or more may continue on accrual only when they are well secured and/or in process of collection or renewal. When interest accrual is discontinued, all previously accrued but uncollected interest is reversed against current period interest income. Except in very limited circumstances, cash collections on nonaccrual loans are credited to the loan receivable balance and no interest income is recognized on those loans until the principal balance is paid in full. Accrual of interest may be resumed when the customer is current on all principal and interest payments and has been paying on a timely basis for a sustained period of time. See Note 4 for additional information and disclosures on originated loans. Management considers a loan to be impaired when it is probable the Company will be unable to collect all contractual principal and interest payments due in accordance with the terms of the loan agreement. For determining the appropriateness of the ALLL, management defines impaired loans as nonaccrual credit relationships over $250,000 , all loans determined to be troubled debt restructurings, plus additional loans with impairment risk characteristics. At the time an individual loan goes into nonaccrual status, management evaluates the loan for impairment and possible charge-off regardless of loan size. Typically, impairment amounts for loans under the scope criteria are charged off when the impairment amount is determined. The ALLL represents management’s estimate of probable and inherent credit losses in the Company’s loan portfolio at the balance sheet date. In general, estimating the amount of the ALLL is a function of a number of factors, including but not limited to changes in the loan portfolio, net charge-offs, trends in past due and impaired loans, and the level of potential problem loans, all of which may be susceptible to significant change. Actual credit losses, net of recoveries, are deducted from the ALLL. Loans are charged off when management believes that the collectability of the principal is unlikely. Subsequent recoveries, if any, are credited to the ALLL. A provision for loan losses, which is a charge against income, is recorded to bring the ALLL to a level that, in management’s judgment, is appropriate to absorb probable losses in the loan portfolio. The allocation methodology applied by the Company is designed to assess the overall appropriateness of the ALLL and includes allocations for specifically identified impaired loans and loss factors for all remaining loans, with a component primarily based on historical loss rates and another component primarily based on other qualitative factors. Impaired loans are individually assessed and are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. Loans that are determined not to be impaired are collectively evaluated for impairment, stratified by type and allocated loss ranges based on the Company’s actual historical loss ratios for each strata, and adjustments are also provided for certain current environmental and qualitative factors. An internal loan review function rates loans using a grading system based on nine different categories. Loans with grades of seven or higher (“classified loans”) represent loans with a greater risk of loss and may be assigned allocations for loss based on specific review of the weaknesses observed in the individual credits if classified as impaired. Classified loans are constantly monitored by the loan review function to ensure early identification of any deterioration. Allocations to the ALLL may be made for specific loans but the entire ALLL is available for any loan that, in management’s judgment, should be charged-off or for which an actual loss is realized. The allowance analysis is reviewed by the Board on a quarterly basis in compliance with internal and regulatory requirements. Loans and ALLL – Acquired Loans: The loans purchased in acquisition transactions are acquired loans. Acquired loans are recorded at their estimated fair value at the acquisition date, and are initially classified as either purchase credit impaired (“PCI”) loans (i.e., loans that reflect credit deterioration since origination and it is probable at acquisition that the Company will be unable to collect all contractually required payments) or purchased non-impaired loans (i.e., “performing acquired loans”). See Note 4 for additional information and disclosures on acquired loans. PCI loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality, found in Financial Accounting Standards Board (“FASB”) ASC Topic 310-30, Receivables—Loans and Debt Securities Acquired with Deteriorated Credit Quality . The Company estimates the amount and timing of expected principal, interest and other cash flows for each loan or pool of loans meeting the criteria above, and determines the excess of the loan’s scheduled contractual principal and contractual interest payments over all cash flows expected to be collected at acquisition as an amount that should not be accreted. These credit discounts (“nonaccretable marks”) are included in the determination of the initial fair value for acquired loans; therefore, an allowance for loan losses is not recorded at the acquisition date. Differences between the estimated fair values and expected cash flows of acquired loans at the acquisition date that are not credit-based (“accretable marks”) are subsequently accreted to interest income over the estimated life of the loans using a method that approximates a level yield if the timing and amount of the future cash flows is reasonably estimable. Subsequent to the acquisition date for PCI loans, increases in cash flows over those expected at the acquisition date result in a move of the discount from nonaccretable to accretable. Decreases in expected cash flows after the acquisition date are recognized through the provision for loan losses. All fair value discounts initially recorded on PCI loans were deemed to be credit related. Performing acquired loans are accounted for under FASB ASC Topic 310-20, Receivables—Nonrefundable Fees and Other Costs . Performance of certain loans may be monitored, and based on management’s assessment of the cash flows and other facts available, portions of the accretable difference may be delayed or suspended if management deems appropriate. The Company’s policy for determining when to discontinue accruing interest on performing acquired loans and the subsequent accounting for such loans is essentially the same as the policy for originated loans described above. An ALLL is calculated using a methodology similar to that described for originated loans. Performing acquired loans are subsequently evaluated for any required allowance at each reporting date. Such required allowance for each loan pool is compared to the remaining fair value discount for that pool. If greater, the excess is recognized as an addition to the allowance through a provision for loan losses charge. If less than the discount, no additional allowance is recorded. Charge-offs and losses first reduce any remaining fair value discount for the loan pool and once the discount is depleted, losses are applied against the allowance established for that pool. For PCI loans after acquisition, cash flows expected to be collected are recast for each loan periodically as determined appropriate by management. If the present value of expected cash flows for a loan is less than its carrying value, impairment is reflected by an increase in the ALLL and a charge to the provision for loan losses. If the present value of the expected cash flows for a loan is greater than its carrying value, any previously established ALLL is reversed and any remaining difference increases the accretable yield which will be taken into income over the remaining life of the loan. Loans which were considered troubled debt restructurings prior to the acquisition transaction are not required to be classified as troubled debt restructurings in the Company’s consolidated financial statements unless or until such loans would subsequently meet criteria to be classified as such, since acquired loans were recorded at their estimated fair values at the time of the acquisition. Credit-Related Financial Instruments : In the ordinary course of business the Company has entered into financial instruments consisting of commitments to extend credit, financial standby letters of credit, and performance standby letters of credit. Financial standby letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and the third party, while performance standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party. Such financial instruments are recorded in the consolidated financial statements when they are funded. See Note 13 for additional information and disclosures on credit-related financial instruments. Transfers of Financial Assets : Transfers of financial assets, primarily in loan participation activities, are accounted for as sales only when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of the right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return assets. Premises and Equipment : Premises and equipment are stated at cost less accumulated depreciation and amortization. Premises and equipment from acquisitions were recorded at estimated fair value on the respective dates of acquisition. Depreciation is computed on a straight-line basis over the estimated useful lives of the related assets. Leasehold improvements are amortized on the straight-line method over the shorter of the estimated useful lives of the improvements or the terms of the related leases. Maintenance and repairs are expensed as incurred. See Note 5 for additional information on premises and equipment. Estimated useful lives of new premises and equipment generally range as follows: Building and improvements 25 – 40 years Leasehold improvements 5 – 15 years Furniture and equipment 3 – 10 years Other Real Estate Owned (“OREO”) : OREO acquired through partial or total satisfaction of loans or bank facilities no longer in use are carried at fair value less estimated costs to sell. Any write-down in the carrying value of loans or vacated bank premises at the time of transfer to OREO is charged to the ALLL or to write-down of assets, respectively. OREO properties acquired in conjunction with the acquisition transactions were recorded at fair value on the date of acquisition. Any subsequent write-downs to reflect current fair value, as well as gains or losses on disposition and revenues and expenses incurred to hold and maintain such properties, are treated as period costs. At December 31, 2019 and 2018 , OREO was $1.0 million and $0.4 million , respectively. Goodwill and Other Intangibles : Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired. Goodwill is not amortized but, instead, is subject to impairment tests on at least an annual basis or more frequently if certain events or circumstances occur. Other intangibles include core deposit intangibles (which represent the value of acquired customer core deposit bases) and customer list intangibles. The core deposit intangibles have an estimated finite life, are amortized on an accelerated basis over a 10 -year period, and are subject to periodic impairment evaluation. The customer list intangibles have finite lives and are amortized on a straight-line basis to expense over their initial weighted average life of approximately 12 years as of acquisition. See Note 6 for additional information on goodwill and other intangibles. 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 annual assessments resulted in a $0.8 million impairment charge on goodwill in late 2019 for a recent change in business strategy, while no other impairment was indicated on the remaining goodwill and other intangibles for 2019 or 2018 . Mortgage Servicing Rights (“MSRs”): If the Company sells originated residential mortgages into the secondary market and retains the right to service the loans sold, then a mortgage servicing right asset (liability) is capitalized upon sale with the offsetting effect recorded as a gain (loss) on sale of loans in earnings (included in mortgage income, net), representing the then-current estimated fair value of future net cash flows expected to be realized for performing the servicing activities. MSRs when purchased (including MSRs purchased in acquisitions) are initially recorded at their then-estimated fair value. As the Company has not elected to measure any class of servicing assets under the fair value method, the Company utilizes the amortization method. MSRs are amortized in proportion to and over the period of estimated net servicing income, with the amortization charged to earnings (included in mortgage income, net). MSRs are carried at the lower of initial capitalized amount, net of accumulated amortization, or estimated fair value, and are included in other assets in the consolidated balance sheets. Loan servicing fee income for servicing loans is typically based on a contractual percentage of the outstanding principal and is recorded as income when earned (included in mortgage income, net with less material late fees and ancillary fees related to loan servicing). The Company periodically evaluates its MSRs 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). The value of MSRs is adversely affected when mortgage interest rates decline and mortgage loan prepayments increase. A valuation allowance is established through a charge to earnings (included in mortgage income, net) to the extent the amortized cost of the MSRs exceeds the estimated fair value by stratification. If it is later determined that all or a portion of the temporary impairment no longer exists for a stratification, the valuation is reduced through a recovery to earnings, though not beyond the net amortized cost carried. An other-than-temporary impairment (i.e., recoverability is considered remote when considering interest rates and loan payoff activity) is recognized as a write-down of the MSRs and the related valuation allowance (to the extent a valuation allowance is available) and then against earnings. A direct write-down permanently reduces the carrying value of the MSRs and valuation allowance, precluding subsequent recoveries. No valuation allowance or impairment charge was recorded for 2019 or 2018 . See Note 6 for additional information on MSRs. Bank-owned Life Insurance (“BOLI”): The Company owns BOLI on certain executives and employees. BOLI balances are recorded at their cash surrender values. Changes in the cash surrender values and death proceeds exceeding carrying values are included in noninterest income. Short-term Borrowings : Short-term borrowings consist primarily of overnight Federal funds purchased and securities sold under agreements to repurchase (“repos”), or other short-term borrowing arrangements with an original maturity of one year or less. Repos are with commercial deposit customers, and are treated as financing activities carried at the amounts that will be subsequently repurchased as specified in the respective agreements. Repos generally mature within one to four days from the transaction date. The Company may be required to provide additional collateral based on the fair value of the underlying securities. There were no outstanding agreements at December 31, 2019 or 2018 . Stock-based Compensation: Share-based payments to employees, including grants of restricted stock or stock options, are valued at fair value of the award on the date of grant and expensed on a straight-line basis as compensation expense over the applicable vesting period. A Black-Scholes model is utilized to estimate the fair value of stock options and the quoted market price of the Company’s stock at the date of grant is used to estimate the fair value of restricted stock awards. See Note 10 for additional information on stock-based compensation. Income Taxes : The Company files a consolidated federal income tax return and a combined state income tax return (both of which include the Company and its wholly owned subsidiaries). Accordingly, amounts equal to tax benefits of those companies having taxable federal losses or credits are reimbursed by the companies that incur federal tax liabilities. Amounts provided for income tax expense are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable under tax laws. Deferred income tax assets and liabilities are computed quarterly for differences between the financial statement and tax bases of ass |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Choice Bancorp, Inc. (“Choice”): On November 8, 2019, the Company consummated its merger with Choice, pursuant to the terms of the Agreement and Plan of Merger dated June 26, 2019, (the “Choice Merger Agreement”), whereby Choice was merged with and into Nicolet, and Choice Bank, the wholly owned bank subsidiary of Choice, was merged with and into the Bank. The system integration was completed, and the two branches of Choice opened on November 12, 2019, as Nicolet National Bank branches, expanding its presence in the Oshkosh marketplace. The Company closed its legacy Oshkosh location concurrently with the consummation of the Choice merger. The purpose of the merger was to continue Nicolet’s interest in strategic growth, consistent with its plan to improve profitability through efficiency, leverage the strengths of each bank across the combined customer base, and add shareholder value. With the merger, Nicolet became the leading community bank to serve the Oshkosh marketplace. Pursuant to the Choice Merger Agreement, the final purchase price consisted of issuing 1,184,102 shares of the Company's common stock (given the final stock-for-stock exchange ratio of 0.497 , and not exchanging the Choice shares owned by the Company immediately prior to the time of the merger), for common stock consideration of $79.8 million (based on $67.39 per share, the volume weighted average closing price of the Company's common stock over the preceding 30 trading day period) plus cash consideration of $1.7 million . Approximately $0.2 million in direct stock issuance costs for the merger were incurred and charged against additional paid-in capital. Upon consummation, the Company added $457 million in assets, including $348 million in loans, $289 million in deposits, $1.7 million in core deposit intangible, and $45 million of goodwill. The Company accounted for the transaction under the acquisition method of accounting, and thus, the financial position and results of operations of Choice prior to the consummation date were not included in the accompanying consolidated financial statements. The accounting required assets purchased and liabilities assumed to be recorded at their respective estimated fair values at the date of acquisition. Brokerage business acquired: During the third quarter of 2018, Nicolet purchased a small brokerage book of business from a retiring financial advisor in support of the Company's initiative to expand its wealth management business. As a result of this purchase, the Company recorded a customer list intangible of $290,000 which will be amortized on a straight-line basis. First Menasha Bancshares, Inc. (“First Menasha”): On April 28, 2017, the Company consummated its merger with First Menasha pursuant to the Agreement and Plan of Merger dated November 3, 2016, (the “First Menasha Merger Agreement”), whereby First Menasha was merged with and into the Company, and The First National Bank-Fox Valley, the wholly owned commercial bank subsidiary of First Menasha, was merged with and into the Bank. The system integration was completed, and five branches of First Menasha opened on May 1, 2017, as Nicolet National Bank branches, expanding its presence in Calumet and Winnebago Counties, Wisconsin. The Company closed one of its Calumet County locations concurrently with the consummation of the First Menasha merger. Pursuant to the First Menasha Merger Agreement, the final purchase price consisted of issuing 1,309,885 shares of the Company’s common stock (given the final stock-for-stock exchange ratio of 3.126 , and not exchanging the First Menasha shares owned by the Company immediately prior to the time of the merger), for common stock consideration of $62.2 million (based on $47.52 per share, the volume weighted average closing price of the Company’s common stock over the preceding 20 trading day period) plus cash consideration of $19.3 million . Approximately $0.2 million in direct stock issuance costs for the merger were incurred and charged against additional paid-in capital. Upon consummation, the Company added $480 million in assets, $351 million in loans, $375 million in deposits, $4 million in core deposit intangible, and $41 million of goodwill. The Company accounted for the transaction under the acquisition method of accounting, and thus, the financial position and results of operations of First Menasha prior to the consummation date were not included in the accompanying consolidated financial statements. The accounting required assets purchased and liabilities assumed to be recorded at their respective estimated fair values at the date of acquisition. |
SECURITIES AVAILABLE FOR SALE
SECURITIES AVAILABLE FOR SALE | 12 Months Ended |
Dec. 31, 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. December 31, 2019 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government agency securities $ 16,516 $ 4 $ 60 $ 16,460 State, county and municipals 155,501 1,049 157 156,393 Mortgage-backed securities 193,223 2,492 697 195,018 Corporate debt securities 78,009 3,422 — 81,431 $ 443,249 $ 6,967 $ 914 $ 449,302 December 31, 2018 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government agency securities $ 22,467 $ — $ 818 $ 21,649 State, county and municipals 163,702 76 3,252 160,526 Mortgage-backed securities 134,350 328 3,034 131,644 Corporate debt securities 87,352 66 1,093 86,325 $ 407,871 $ 470 $ 8,197 $ 400,144 The following table presents gross unrealized losses and the related estimated fair value of investment securities available for sale, aggregated by investment category and the length of time the individual securities have been in a continuous unrealized loss position. December 31, 2019 Less than 12 months 12 months or more Total (in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Number of Securities U.S. government agency securities $ 1,035 $ 2 $ 11,091 $ 58 $ 12,126 $ 60 6 State, county and municipals 22,451 132 7,605 25 30,056 157 56 Mortgage-backed securities 49,626 245 47,271 452 96,897 697 150 Corporate debt securities — — — — — — — $ 73,112 $ 379 $ 65,967 $ 535 $ 139,079 $ 914 212 December 31, 2018 Less than 12 months 12 months or more Total (in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Number of Securities U.S. government agency securities $ — $ — $ 21,649 $ 818 $ 21,649 $ 818 3 State, county and municipals 16,136 98 130,975 3,154 147,111 3,252 440 Mortgage-backed securities 20,568 132 89,189 2,902 109,757 3,034 204 Corporate debt securities 51,592 677 9,757 416 61,349 1,093 33 $ 88,296 $ 907 $ 251,570 $ 7,290 $ 339,866 $ 8,197 680 As of December 31, 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 impairment charges recognized in earnings on securities AFS during 2019 , 2018 , or 2017 . 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. See Note 17 for additional information on the Company’s fair value measurements. December 31, 2019 (in thousands) Amortized Cost Fair Value Due in less than one year $ 18,662 $ 18,679 Due in one year through five years 187,010 190,149 Due after five years through ten years 35,440 35,829 Due after ten years 8,914 9,627 250,026 254,284 Mortgage-backed securities 193,223 195,018 Securities AFS $ 443,249 $ 449,302 AFS securities with a carrying value of $166 million and $157 million as of December 31, 2019 and 2018 , respectively, were pledged as collateral on public deposits and for other purposes as required or permitted by law. Proceeds from sales of securities AFS is summarized as follows. Years Ended December 31, (in thousands) 2019 2018 2017 Gross gains $ 152 $ — $ 1,227 Gross losses (174 ) (212 ) (7 ) Gains (losses) on sales of securities AFS, net $ (22 ) $ (212 ) $ 1,220 Proceeds from sales of securities AFS $ 23,405 $ 5,280 $ 10,798 |
LOANS, ALLOWANCE FOR LOAN LOSSE
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | 12 Months Ended |
Dec. 31, 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. December 31, 2019 December 31, 2018 (in thousands) Amount % of Total Amount % of Total Commercial & industrial $ 806,189 31 % $ 684,920 32 % Owner-occupied commercial real estate (“CRE”) 496,372 19 441,353 20 Agricultural (“AG”) production 35,982 2 35,625 2 AG real estate 59,468 2 53,444 2 CRE investment 443,218 17 343,652 16 Construction & land development 92,970 4 80,599 4 Residential construction 54,403 2 30,926 1 Residential first mortgage 432,167 17 357,841 17 Residential junior mortgage 122,771 5 111,328 5 Retail & other 30,211 1 26,493 1 Loans 2,573,751 100 % 2,166,181 100 % Less ALLL 13,972 13,153 Loans, net $ 2,559,779 $ 2,153,028 ALLL to loans 0.54 % 0.61 % As a further breakdown, loans are summarized by originated and acquired as follows. December 31, 2019 December 31, 2018 (in thousands) Originated Amount % of Total Acquired Amount % of Total Originated Amount % of Total Acquired Amount % of Total Commercial & industrial $ 641,341 39 % $ 164,848 18 % $ 568,100 38 % $ 116,820 17 % Owner-occupied CRE 329,138 20 167,234 18 283,531 19 157,822 23 AG production 11,824 1 24,158 3 11,113 1 24,512 4 AG real estate 38,983 2 20,485 2 31,374 2 22,070 3 CRE investment 183,746 11 259,472 28 171,087 12 172,565 25 Construction & land development 56,086 3 36,884 4 66,478 4 14,121 2 Residential construction 43,460 3 10,943 1 30,926 2 — — Residential first mortgage 232,580 14 199,587 22 220,368 15 137,473 20 Residential junior mortgage 90,284 5 32,487 4 78,379 5 32,949 5 Retail & other 28,373 2 1,838 — 23,809 2 2,684 1 Loans 1,655,815 100 % 917,936 100 % 1,485,165 100 % 681,016 100 % Less ALLL 12,116 1,856 11,448 1,705 Loans, net $ 1,643,699 $ 916,080 $ 1,473,717 $ 679,311 ALLL to loans 0.73 % 0.20 % 0.77 % 0.25 % 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. See Note 1 for the Company’s accounting policy on loans and the allowance for loan losses. A roll forward of the allowance for loan losses is summarized as follows. Years Ended December 31, (in thousands) 2019 2018 2017 Beginning balance $ 13,153 $ 12,653 $ 11,820 Provision for loan losses 1,200 1,600 2,325 Charge-offs (927 ) (1,213 ) (1,604 ) Recoveries 546 113 112 Net charge-offs (381 ) (1,100 ) (1,492 ) Ending balance $ 13,972 $ 13,153 $ 12,653 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 year ended December 31, 2019 . TOTAL – Year Ended December 31, 2019 (in thousands) Commercial & industrial Owner- occupied CRE AG production AG real estate CRE investment Construction & land development Residential construction Residential first mortgage Residential junior mortgage Retail & other Total ALLL: Beginning balance $ 5,271 $ 2,847 $ 121 $ 301 $ 1,470 $ 510 $ 211 $ 1,646 $ 472 $ 304 $ 13,153 Provision (61 ) 254 89 68 130 (96 ) 383 9 86 338 1,200 Charge-offs (159 ) (93 ) — — — — (226 ) (22 ) (80 ) (347 ) (927 ) Recoveries 420 2 — — — — — 36 39 49 546 Net charge-offs 261 (91 ) — — — — (226 ) 14 (41 ) (298 ) (381 ) Ending balance $ 5,471 $ 3,010 $ 210 $ 369 $ 1,600 $ 414 $ 368 $ 1,669 $ 517 $ 344 $ 13,972 As % of ALLL 39 % 22 % 1 % 3 % 11 % 3 % 3 % 12 % 4 % 2 % 100 % ALLL: Individually evaluated $ 625 $ — $ 116 $ — $ — $ — $ — $ — $ — $ — $ 741 Collectively evaluated 4,846 3,010 94 369 1,600 414 368 1,669 517 344 13,231 Ending balance $ 5,471 $ 3,010 $ 210 $ 369 $ 1,600 $ 414 $ 368 $ 1,669 $ 517 $ 344 $ 13,972 Loans: Individually evaluated $ 5,932 $ 3,430 $ 1,061 $ 1,073 $ 2,426 $ 382 $ — $ 2,357 $ 218 $ 12 $ 16,891 Collectively evaluated 800,257 492,942 34,921 58,395 440,792 92,588 54,403 429,810 122,553 30,199 2,556,860 Total loans $ 806,189 $ 496,372 $ 35,982 $ 59,468 $ 443,218 $ 92,970 $ 54,403 $ 432,167 $ 122,771 $ 30,211 $ 2,573,751 Less ALLL 5,471 3,010 210 369 1,600 414 368 1,669 517 344 13,972 Net loans $ 800,718 $ 493,362 $ 35,772 $ 59,099 $ 441,618 $ 92,556 $ 54,035 $ 430,498 $ 122,254 $ 29,867 $ 2,559,779 As a further breakdown, the ALLL is summarized by originated and acquired as follows. Originated – Year Ended December 31, 2019 (in thousands) Commercial & industrial Owner- occupied CRE AG production AG real estate CRE investment Construction & land development Residential construction Residential first mortgage Residential junior mortgage Retail & other Total ALLL: Beginning balance $ 4,683 $ 2,439 $ 110 $ 255 $ 1,230 $ 431 $ 211 $ 1,400 $ 408 $ 281 $ 11,448 Provision (207 ) 212 85 57 124 (81 ) 340 5 25 335 895 Charge-offs (59 ) (93 ) — — — — (226 ) (22 ) (20 ) (347 ) (767 ) Recoveries 420 2 — — — — — 36 33 49 540 Net charge-offs 361 (91 ) — — — — (226 ) 14 13 (298 ) (227 ) Ending balance $ 4,837 $ 2,560 $ 195 $ 312 $ 1,354 $ 350 $ 325 $ 1,419 $ 446 $ 318 $ 12,116 As % of ALLL 40 % 21 % 2 % 2 % 11 % 3 % 3 % 12 % 4 % 2 % 100 % ALLL: Individually evaluated $ 625 $ — $ 116 $ — $ — $ — $ — $ — $ — $ — $ 741 Collectively evaluated 4,212 2,560 79 312 1,354 350 325 1,419 446 318 11,375 Ending balance $ 4,837 $ 2,560 $ 195 $ 312 $ 1,354 $ 350 $ 325 $ 1,419 $ 446 $ 318 $ 12,116 Loans: Individually evaluated $ 1,993 $ 1,845 $ 1,008 $ 862 $ — $ — $ — $ — $ — $ — $ 5,708 Collectively evaluated 639,348 327,293 10,816 38,121 183,746 56,086 43,460 232,580 90,284 28,373 1,650,107 Total loans $ 641,341 $ 329,138 $ 11,824 $ 38,983 $ 183,746 $ 56,086 $ 43,460 $ 232,580 $ 90,284 $ 28,373 $ 1,655,815 Less ALLL 4,837 2,560 195 312 1,354 350 325 1,419 446 318 12,116 Net loans $ 636,504 $ 326,578 $ 11,629 $ 38,671 $ 182,392 $ 55,736 $ 43,135 $ 231,161 $ 89,838 $ 28,055 $ 1,643,699 Acquired – Year Ended December 31, 2019 (in thousands) Commercial & industrial Owner- occupied CRE AG production AG real estate CRE investment Construction & land development Residential construction Residential first mortgage Residential junior mortgage Retail & other Total ALLL: Beginning balance $ 588 $ 408 $ 11 $ 46 $ 240 $ 79 $ — $ 246 $ 64 $ 23 $ 1,705 Provision 146 42 4 11 6 (15 ) 43 4 61 3 305 Charge-offs (100 ) — — — — — — — (60 ) — (160 ) Recoveries — — — — — — — — 6 — 6 Net charge-offs (100 ) — — — — — — — (54 ) — (154 ) Ending balance $ 634 $ 450 $ 15 $ 57 $ 246 $ 64 $ 43 $ 250 $ 71 $ 26 $ 1,856 As % of ALLL 34 % 24 % 1 % 3 % 13 % 4 % 2 % 14 % 4 % 1 % 100 % ALLL: Individually evaluated $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated 634 450 15 57 246 64 43 250 71 26 1,856 Ending balance $ 634 $ 450 $ 15 $ 57 $ 246 $ 64 $ 43 $ 250 $ 71 $ 26 $ 1,856 Loans: Individually evaluated $ 3,939 $ 1,585 $ 53 $ 211 $ 2,426 $ 382 $ — $ 2,357 $ 218 $ 12 $ 11,183 Collectively evaluated 160,909 165,649 24,105 20,274 257,046 36,502 10,943 197,230 32,269 1,826 906,753 Total loans $ 164,848 $ 167,234 $ 24,158 $ 20,485 $ 259,472 $ 36,884 $ 10,943 $ 199,587 $ 32,487 $ 1,838 $ 917,936 Less ALLL 634 450 15 57 246 64 43 250 71 26 1,856 Net loans $ 164,214 $ 166,784 $ 24,143 $ 20,428 $ 259,226 $ 36,820 $ 10,900 $ 199,337 $ 32,416 $ 1,812 $ 916,080 For comparison, 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 year ended December 31, 2018 . TOTAL – Year Ended December 31, 2018 (in thousands) Commercial & industrial Owner- occupied CRE AG production AG real estate CRE investment Construction & land development Residential construction Residential first mortgage Residential junior mortgage Retail & other Total ALLL: Beginning balance $ 4,934 $ 2,607 $ 129 $ 296 $ 1,388 $ 726 $ 251 $ 1,609 $ 488 $ 225 $ 12,653 Provision 1,107 300 (8 ) 5 119 (216 ) (40 ) 117 (51 ) 267 1,600 Charge-offs (813 ) (74 ) — — (37 ) — — (85 ) — (204 ) (1,213 ) Recoveries 43 14 — — — — — 5 35 16 113 Net charge-offs (770 ) (60 ) — — (37 ) — — (80 ) 35 (188 ) (1,100 ) Ending balance $ 5,271 $ 2,847 $ 121 $ 301 $ 1,470 $ 510 $ 211 $ 1,646 $ 472 $ 304 $ 13,153 As % of ALLL 40 % 22 % 1 % 2 % 11 % 4 % 2 % 12 % 4 % 2 % 100 % ALLL: Individually evaluated $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated 5,271 2,847 121 301 1,470 510 211 1,646 472 304 13,153 Ending balance $ 5,271 $ 2,847 $ 121 $ 301 $ 1,470 $ 510 $ 211 $ 1,646 $ 472 $ 304 $ 13,153 Loans: Individually evaluated $ 2,927 $ 1,506 $ — $ 222 $ 1,686 $ 603 $ — $ 2,750 $ 233 $ 12 $ 9,939 Collectively evaluated 681,993 439,847 35,625 53,222 341,966 79,996 30,926 355,091 111,095 26,481 2,156,242 Total loans $ 684,920 $ 441,353 $ 35,625 $ 53,444 $ 343,652 $ 80,599 $ 30,926 $ 357,841 $ 111,328 $ 26,493 $ 2,166,181 Less ALLL 5,271 2,847 121 301 1,470 510 211 1,646 472 304 13,153 Net loans $ 679,649 $ 438,506 $ 35,504 $ 53,143 $ 342,182 $ 80,089 $ 30,715 $ 356,195 $ 110,856 $ 26,189 $ 2,153,028 As a further breakdown, the December 31, 2018 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 (771 ) (61 ) — — (37 ) — — (84 ) 30 (185 ) (1,108 ) Ending balance $ 4,683 $ 2,439 $ 110 $ 255 $ 1,230 $ 431 $ 211 $ 1,400 $ 408 $ 281 $ 11,448 As % of ALLL 41 % 21 % 1 % 2 % 11 % 4 % 2 % 12 % 4 % 2 % 100 % ALLL: Individually evaluated $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated 4,683 2,439 110 255 1,230 431 211 1,400 408 281 11,448 Ending balance $ 4,683 $ 2,439 $ 110 $ 255 $ 1,230 $ 431 $ 211 $ 1,400 $ 408 $ 281 $ 11,448 Loans: Individually evaluated $ 227 $ 321 $ — $ — $ — $ — $ — $ — $ — $ — $ 548 Collectively evaluated 567,873 283,210 11,113 31,374 171,087 66,478 30,926 220,368 78,379 23,809 1,484,617 Total loans $ 568,100 $ 283,531 $ 11,113 $ 31,374 $ 171,087 $ 66,478 $ 30,926 $ 220,368 $ 78,379 $ 23,809 $ 1,485,165 Less ALLL 4,683 2,439 110 255 1,230 431 211 1,400 408 281 11,448 Net loans $ 563,417 $ 281,092 $ 11,003 $ 31,119 $ 169,857 $ 66,047 $ 30,715 $ 218,968 $ 77,971 $ 23,528 $ 1,473,717 Acquired – Year Ended December 31, 2018 (in thousands) Commercial & industrial Owner- occupied CRE AG production AG real estate CRE investment Construction & land development Residential construction Residential first mortgage Residential junior mortgage Retail & other Total ALLL: Beginning balance $ 742 $ 492 $ 17 $ 61 $ 234 $ 98 $ 51 $ 312 $ 79 $ 25 $ 2,111 Provision (155 ) (85 ) (6 ) (15 ) 6 (19 ) (51 ) (70 ) (20 ) 1 (414 ) Charge-offs — (10 ) — — — — — — — (3 ) (13 ) Recoveries 1 11 — — — — — 4 5 — 21 Net charge-offs 1 1 — — — — — 4 5 (3 ) 8 Ending balance $ 588 $ 408 $ 11 $ 46 $ 240 $ 79 $ — $ 246 $ 64 $ 23 $ 1,705 As % of ALLL 34 % 24 % 1 % 3 % 14 % 5 % — % 14 % 4 % 1 % 100 % ALLL: Individually evaluated $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated 588 408 11 46 240 79 — 246 64 23 1,705 Ending balance $ 588 $ 408 $ 11 $ 46 $ 240 $ 79 $ — $ 246 $ 64 $ 23 $ 1,705 Loans: Individually evaluated $ 2,700 $ 1,185 $ — $ 222 $ 1,686 $ 603 $ — $ 2,750 $ 233 $ 12 $ 9,391 Collectively evaluated 114,120 156,637 24,512 21,848 170,879 13,518 — 134,723 32,716 2,672 671,625 Total loans $ 116,820 $ 157,822 $ 24,512 $ 22,070 $ 172,565 $ 14,121 $ — $ 137,473 $ 32,949 $ 2,684 $ 681,016 Less ALLL 588 408 11 46 240 79 — 246 64 23 1,705 Net loans $ 116,232 $ 157,414 $ 24,501 $ 22,024 $ 172,325 $ 14,042 $ — $ 137,227 $ 32,885 $ 2,661 $ 679,311 The following tables present nonaccrual loans by portfolio segment in total and then as a further breakdown by originated or acquired. Total Nonaccrual Loans (in thousands) December 31, 2019 % to Total December 31, 2018 % to Total Commercial & industrial $ 6,249 44 % $ 2,816 52 % Owner-occupied CRE 3,311 23 673 12 AG production 1,062 8 — — AG real estate 836 6 164 3 CRE investment 1,073 8 210 4 Construction & land development 20 — 80 1 Residential construction — — 1 — Residential first mortgage 1,090 8 1,265 23 Residential junior mortgage 480 3 262 5 Retail & other 1 — — — Nonaccrual loans $ 14,122 100 % $ 5,471 100 % Percent of total loans 0.5 % 0.2 % Originated and Acquired Nonaccrual Loans December 31, 2019 December 31, 2018 (in thousands) Originated Amount % of Total Acquired Amount % of Total Originated Amount % of Total Acquired Amount % of Total Commercial & industrial $ 2,283 36 % $ 3,966 51 % $ 352 25 % $ 2,464 61 % Owner-occupied CRE 1,846 29 1,465 19 362 26 311 8 AG production 1,009 16 53 1 — — — — AG real estate 625 10 211 3 — — 164 4 CRE investment — — 1,073 14 — — 210 5 Construction & land development — — 20 — — — 80 2 Residential construction — — — — 1 — — — Residential first mortgage 434 7 656 8 629 45 636 15 Residential junior mortgage 126 2 354 4 65 4 197 5 Retail & other 1 — — — — — — — Nonaccrual loans $ 6,324 100 % $ 7,798 100 % $ 1,409 100 % $ 4,062 100 % Percent of nonaccrual loans 45 % 55 % 26 % 74 % The following tables present past due loans by portfolio segment. December 31, 2019 (in thousands) 30-89 Days Past Due (accruing) 90 Days & Over or nonaccrual Current Total Commercial & industrial $ 1,729 $ 6,249 $ 798,211 $ 806,189 Owner-occupied CRE 112 3,311 492,949 496,372 AG production — 1,062 34,920 35,982 AG real estate — 836 58,632 59,468 CRE investment — 1,073 442,145 443,218 Construction & land development 2,063 20 90,887 92,970 Residential construction 302 — 54,101 54,403 Residential first mortgage 2,736 1,090 428,341 432,167 Residential junior mortgage 217 480 122,074 122,771 Retail & other 110 1 30,100 30,211 Total loans $ 7,269 $ 14,122 $ 2,552,360 $ 2,573,751 Percent of total loans 0.3 % 0.5 % 99.2 % 100.0 % December 31, 2018 (in thousands) 30-89 Days Past Due (accruing) 90 Days & Over or nonaccrual Current Total Commercial & industrial $ — $ 2,816 $ 682,104 $ 684,920 Owner-occupied CRE 557 673 440,123 441,353 AG production 19 — 35,606 35,625 AG real estate 35 164 53,245 53,444 CRE investment 180 210 343,262 343,652 Construction & land development — 80 80,519 80,599 Residential construction — 1 30,925 30,926 Residential first mortgage 758 1,265 355,818 357,841 Residential junior mortgage 12 262 111,054 111,328 Retail & other 10 — 26,483 26,493 Total loans $ 1,571 $ 5,471 $ 2,159,139 $ 2,166,181 Percent of total loans 0.1 % 0.2 % 99.7 % 100.0 % 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. December 31, 2019 (in thousands) Grades 1-4 Grade 5 Grade 6 Grade 7 Grades 8-9 Total Commercial & industrial $ 765,073 $ 20,199 $ 7,663 $ 13,254 $ — $ 806,189 Owner-occupied CRE 464,661 20,855 953 9,903 — 496,372 AG production 27,521 3,174 1,229 4,058 — 35,982 AG real estate 49,561 3,611 2,046 4,250 — 59,468 CRE investment 430,794 8,085 2,578 1,761 — 443,218 Construction & land development 90,523 2,213 15 219 — 92,970 Residential construction 53,286 1,117 — — — 54,403 Residential first mortgage 424,044 4,677 668 2,778 — 432,167 Residential junior mortgage 122,249 35 — 487 — 122,771 Retail & other 30,210 — — 1 — 30,211 Total loans $ 2,457,922 $ 63,966 $ 15,152 $ 36,711 $ — $ 2,573,751 Percent of total loans 95.5 % 2.5 % 0.6 % 1.4 % — % 100.0 % December 31, 2018 (in thousands) Grades 1-4 Grade 5 Grade 6 Grade 7 Grades 8-9 Total Commercial & industrial $ 649,475 $ 16,145 $ 6,178 $ 13,122 $ — $ 684,920 Owner-occupied CRE 405,198 22,776 6,569 6,810 — 441,353 AG production 29,363 3,302 2,351 609 — 35,625 AG real estate 46,248 3,246 2,983 967 — 53,444 CRE investment 334,080 6,792 — 2,780 — 343,652 Construction & land development 75,365 5,138 16 80 — 80,599 Residential construction 30,926 — — — — 30,926 Residential first mortgage 353,239 1,406 510 2,686 — 357,841 Residential junior mortgage 111,037 17 — 274 — 111,328 Retail & other 26,493 — — — — 26,493 Total loans $ 2,061,424 $ 58,822 $ 18,607 $ 27,328 $ — $ 2,166,181 Percent of total loans 95.1 % 2.7 % 0.9 % 1.3 % — % 100.0 % The following tables present impaired loans. December 31, 2019 (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Commercial & industrial $ 5,932 $ 7,950 $ 625 $ 5,405 $ 1,170 Owner-occupied CRE 3,430 4,016 — 3,677 256 AG production 1,061 1,090 116 1,221 28 AG real estate 1,073 1,082 — 1,090 9 CRE investment 2,426 2,790 — 2,497 364 Construction & land development 382 382 — 460 — Residential construction — — — — — Residential first mortgage 2,357 2,629 — 2,412 178 Residential junior mortgage 218 349 — 224 58 Retail & other 12 12 — 12 — Total $ 16,891 $ 20,300 $ 741 $ 16,998 $ 2,063 Originated impaired loans $ 5,708 $ 5,938 $ 741 $ 5,978 $ 230 Acquired impaired loans 11,183 14,362 — 11,020 1,833 Total $ 16,891 $ 20,300 $ 741 $ 16,998 $ 2,063 December 31, 2018 (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Commercial & industrial $ 2,927 $ 6,736 $ — $ 4,041 $ 660 Owner-occupied CRE 1,506 1,833 — 1,659 137 AG production — — — — — AG real estate 222 281 — 238 26 CRE investment 1,686 2,484 — 1,606 163 Construction & land development 603 1,506 — 603 21 Residential construction — — — — — Residential first mortgage 2,750 2,907 — 2,478 176 Residential junior mortgage 233 262 — 62 15 Retail & other 12 12 — 12 1 Total $ 9,939 $ 16,021 $ — $ 10,699 $ 1,199 Originated impaired loans $ 548 $ 548 $ — $ 899 $ 154 Acquired impaired loans 9,391 15,473 — 9,800 1,045 Total $ 9,939 $ 16,021 $ — $ 10,699 $ 1,199 Total purchased credit impaired loans (in aggregate since the Company’s 2013 acquisitions) were initially recorded at a fair value of $45.5 million on their respective acquisition dates, net of an initial $35.3 million nonaccretable mark and a zero accretable mark. At December 31, 2019 , $11.2 million of the $45.5 million remain in impaired loans. Nonaccretable discount on PCI loans: Years Ended December 31, (in thousands) 2019 2018 Balance at beginning of period $ 6,408 $ 9,471 Acquired balance, net 911 — Accretion to loan interest income (4,713 ) (1,976 ) Transferred to accretable — (990 ) Disposals of loans (679 ) (97 ) Balance at end of period $ 1,927 $ 6,408 Troubled Debt Restructurings At December 31, 2019 , there were five loans classified as troubled debt restructurings with a current outstanding balance of $1.1 million and a 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 a pre-modification balance of $2.7 million . There were no loans which were classified as troubled debt restructurings during the previous twelve months that subsequently defaulted during 2019 . As of December 31, 2019 , there were no commitments to lend additional funds to debtors whose terms have been modified in troubled debt restructurings. |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT Premises and equipment, less accumulated depreciation and amortization, is summarized as follows. (in thousands) December 31, 2019 December 31, 2018 Land $ 7,418 $ 6,220 Land improvements 3,865 3,842 Building and improvements 50,818 42,238 Leasehold improvements 4,580 4,092 Furniture and equipment 20,262 18,590 86,943 74,982 Less accumulated depreciation and amortization 30,474 26,809 Premises and equipment, net $ 56,469 $ 48,173 Depreciation and amortization expense amounted to $3.8 million in 2019 , $4.4 million in 2018 , and $4.2 million in 2017 . The Company and certain of its subsidiaries are obligated under non-cancelable operating leases for facilities, certain of which provide for increased rentals based upon increases in cost of living adjustments and other indices. Rent expense under leases totaled $1.2 million in 2019 , $1.4 million in 2018 , and $1.1 million in 2017 . As of January 1, 2019, the Company adopted ASU 2016-02 (Topic 842) on a prospective basis using the effective date method. The adoption of the new standard did not have a material impact on Nicolet's financial statements; however, additional disclosures have been added in accordance with the ASU. See Note 1 for additional information on this new accounting standard. The operating lease ROU asset represents the right to use an underlying asset during the lease term, while the operating lease liability represents the obligation to make lease payments arising from the lease. The ROU asset and lease liability are recognized at lease commencement based on the present value of the remaining lease payments, considering a discount rate that represents Nicolet's incremental borrowing rate. Operating lease expense is recognized on a straight-line basis over the lease term and is recognized in occupancy, equipment, and office on the consolidated statements of income. Nicolet leases space under non-cancelable operating lease agreements for certain bank and nonbank branch facilities with remaining lease terms of 2 to 6 years. Certain lease arrangements contain extension options which typically range from 5 to 10 years at the then fair market rental rates. The lease asset and liability considers renewal options when they are reasonably certain of being exercised. A summary of net lease cost and selected other information related to operating leases was as follows. Year Ended ($ in thousands) December 31, 2019 Net lease cost: Operating lease cost $ 970 Variable lease cost 233 Net lease cost $ 1,203 Selected other operating lease information: Weighted average remaining lease term (years) 4.3 Weighted average discount rate 2.5 % The following table summarizes the maturity of remaining lease liabilities. Years Ending December 31, (in thousands) 2020 $ 1,088 2021 962 2022 851 2023 607 2024 499 Thereafter 16 Total future minimum lease payments 4,023 Less: amount representing interest (100 ) Present value of net future minimum lease payments $ 3,923 During the fourth quarter of 2019, a $0.7 million lease termination charge was recorded to other expense due to the closure of a branch, concurrent with the consummation date of the Choice merger. |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES AND MORTGAGE SERVICING RIGHTS | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES AND MORTGAGE SERVICING RIGHTS | GOODWILL AND OTHER INTANGIBLES AND MORTGAGE SERVICING RIGHTS A summary of goodwill and other intangibles was as follows. (in thousands) December 31, 2019 December 31, 2018 Goodwill $ 151,198 $ 107,366 Core deposit intangibles 10,897 12,562 Customer list intangibles 3,872 4,379 Other intangibles 14,769 16,941 Goodwill and other intangibles, net $ 165,967 $ 124,307 Goodwill : Goodwill is not amortized but, instead, is subject to impairment tests on at least an annual basis or more frequently if certain events or circumstances occur. During 2019, goodwill increased due to the Choice acquisition and impairment was recognized on goodwill initially recorded in 2008 for a recent change in business strategy. See Note 1 for the Company’s accounting policy for goodwill and see Note 2 for additional information on the Company’s acquisitions. (in thousands) December 31, 2019 December 31, 2018 Goodwill: Goodwill at beginning of year $ 107,366 $ 107,366 Acquisition 44,594 — Impairment (762 ) — Goodwill at end of year $ 151,198 $ 107,366 Other intangibles : Other intangible assets, consisting of core deposit intangibles and customer list intangibles, are amortized over their estimated finite lives. During 2019, core deposit intangibles increased due to the Choice acquisition, while during 2018 customer list intangibles increased due to the purchase of a brokerage book of business. See Note 1 for the Company’s accounting policy for other intangibles and see Note 2 for additional information on the Company’s acquisitions. (in thousands) December 31, 2019 December 31, 2018 Core deposit intangibles: Gross carrying amount $ 30,715 $ 29,015 Accumulated amortization (19,818 ) (16,453 ) Net book value $ 10,897 $ 12,562 Additions during the period $ 1,700 $ — Amortization during the period $ 3,365 $ 3,915 Customer list intangibles: Gross carrying amount $ 5,523 5,523 Accumulated amortization (1,651 ) (1,144 ) Net book value $ 3,872 $ 4,379 Additions during the period $ — $ 290 Amortization during the period $ 507 $ 474 Mortgage servicing rights : A summary of the changes in the MSR asset was as follows. (in thousands) December 31, 2019 December 31, 2018 MSR asset: MSR asset at beginning of year $ 3,749 $ 3,187 Capitalized MSR 2,876 1,203 MSR asset acquired 160 — Amortization during the period (866 ) (641 ) MSR asset at end of year $ 5,919 $ 3,749 Fair value of MSR asset at end of period $ 8,420 $ 6,347 Residential mortgage loans serviced for others $ 847,756 $ 603,446 Net book value of MSR asset to loans serviced for others 0.70 % 0.62 % The Company periodically evaluates its mortgage servicing rights asset for impairment. No valuation allowance or impairment charge was recorded for 2019 or 2018 . See Note 1 for the Company’s accounting policy for MSRs, see Note 2 for additional information on the Company’s acquisitions, and see Note 17 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 December 31, 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 Years Ending December 31, 2020 $ 2,993 $ 507 $ 1,048 2021 2,453 507 865 2022 1,987 507 865 2023 1,490 483 835 2024 1,010 449 503 Thereafter 964 1,419 1,803 Total $ 10,897 $ 3,872 $ 5,919 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS At December 31, 2019 , the scheduled maturities of time deposits were as follows. Years Ending December 31, (in thousands) 2020 $ 317,693 2021 114,728 2022 50,949 2023 45,040 2024 19,773 Thereafter 2,374 Total time deposits $ 550,557 Time deposits of $250,000 or more were $91.2 million and $77.6 million at December 31, 2019 and 2018 , respectively. |
SHORT AND LONG-TERM BORROWINGS
SHORT AND LONG-TERM BORROWINGS | 12 Months Ended |
Dec. 31, 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 contractual maturity of one year or less) outstanding at December 31, 2019 or 2018 . Long-Term Borrowings: The components of long-term borrowings (borrowing with an original contractual maturity greater than one year) were as follows. (in thousands) December 31, 2019 December 31, 2018 FHLB advances $ 25,061 $ 35,252 Junior subordinated debentures 30,575 30,096 Subordinated notes 11,993 11,957 Total long-term borrowings $ 67,629 $ 77,305 FHLB Advances : The FHLB advances bear fixed rates, require interest-only monthly payments, and have maturity dates through March 2025. The weighted average rate of the FHLB advances was 1.57% and 1.72% at December 31, 2019 and 2018 , respectively. The FHLB advances are collateralized by a blanket lien on qualifying first mortgages, home equity loans, multi-family loans and certain farmland loans which had a pledged balance of $273.5 million and $295.3 million at December 31, 2019 and 2018 , respectively. The following table shows the maturity schedule of the FHLB advances as of December 31, 2019 . Maturing in: (in thousands) 2020 $ 10,061 2021 10,000 2022 — 2023 — 2024 — 2025 5,000 $ 25,061 The Company has a $10 million line of credit with a third party bank, bearing a variable rate of interest based on one-month LIBOR plus a 2.25% margin, but subject to a floor rate of 3.25% , with quarterly payments of interest only. At December 31, 2019 , the available line was $10 million . The outstanding balance was zero at December 31, 2019 and 2018 , and the line was not used during 2019 or 2018 . 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. Junior Subordinated Debentures (in thousands) Maturity Date Par 12/31/2019 Unamortized Discount 12/31/2019 Carrying Value 12/31/2018 Carrying Value 2004 Nicolet Bankshares Statutory Trust (1) 7/15/2034 $ 6,186 $ — $ 6,186 $ 6,186 2005 Mid-Wisconsin Financial Services, Inc. (2) 12/15/2035 10,310 (3,172 ) 7,138 6,939 2006 Baylake Corp. (3) 9/30/2036 16,598 (3,883 ) 12,715 12,478 2004 First Menasha Bancshares, Inc. (4) 3/17/2034 5,155 (619 ) 4,536 4,493 Total $ 38,249 $ (7,674 ) $ 30,575 $ 30,096 (1) The interest rate is 8.00% fixed. (2) The debentures, assumed in April 2013 as the result of an acquisition, have a floating rate of the three-month LIBOR plus 1.43% , adjusted quarterly. The interest rates were 3.32% and 4.22% as of December 31, 2019 and 2018 , respectively. (3) The debentures, assumed in April 2016 as a result of an acquisition, have a floating rate of the three-month LIBOR plus 1.35% , adjusted quarterly. The interest rates were 3.31% and 4.15% as of December 31, 2019 and 2018 , respectively. (4) The debentures, assumed in April 2017 as the result of an acquisition, have a floating rate of the three-month LIBOR plus 2.79% , adjusted quarterly. The interest rate was 4.69% and 5.58% as of December 31, 2019 and 2018 , respectively. Each of the junior subordinated debentures was issued to an underlying statutory trust (the “statutory trusts”), which issued trust preferred securities and common securities and used the proceeds from the issuance of the common and the trust preferred securities to purchase the junior subordinated debentures of the Company. The debentures represent the sole asset of the statutory trusts. All of the common securities of the statutory trusts are owned by the Company. The statutory trusts are not included in the consolidated financial statements. The net effect of all the documents entered into with respect to the trust preferred securities is that the Company, through payments on its debentures, is liable for the distributions and other payments required on the trust preferred securities. At December 31, 2019 and 2018 , $29.4 million and $28.9 million , respectively, of trust preferred securities qualify as Tier 1 capital. Subordinates 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. |
EMPLOYEE AND DIRECTOR BENEFIT P
EMPLOYEE AND DIRECTOR BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
EMPLOYEE AND DIRECTOR BENEFIT PLANS | EMPLOYEE AND DIRECTOR BENEFIT PLANS The Company sponsors two deferred compensation plans, one for certain key management employees and another for directors. Under the management plan, which was amended in 2016, employees designated by the Board of Directors may elect to defer compensation and the Company may at its discretion make nonelective contributions on behalf of one or more eligible plan participants. Upon retirement, termination of employment or at their election, the employee shall become entitled to receive the deferred amounts plus earnings thereon. The liability for the cumulative employee contributions and earnings thereon at December 31, 2019 and 2018 totaled approximately $906,000 and $527,000 , respectively, and is included in other liabilities on the consolidated balance sheets. The Company made discretionary contributions totaling $1,800,000 and $175,000 during 2019 and 2018 , respectively, to selected recipients. The contributions made in 2019 vested immediately and were expensed upon grant; while the 2018 contributions will vest and be expensed ratably over the four or five year vesting period from the date of grant. Under the director plan, participating directors may defer up to 100% of their Board compensation towards the purchase of Company common stock at market prices on a quarterly basis that is held in a Rabbi Trust and distributed when each such participating director ends his or her board service. During 2019 and 2018 , the director plan purchased 3,769 and 3,889 shares of Company common stock valued at approximately $220,000 and $213,000 , respectively. Common stock valued at approximately $33,000 (and representing 672 shares) and $32,000 (and representing 600 shares) was distributed to past directors during 2019 and 2018 , respectively. The common stock outstanding and the related director deferred compensation liability are offsetting components of the Company’s equity in the amount of $1,030,000 at December 31, 2019 and $831,000 at December 31, 2018 representing 29,202 shares and 26,105 shares, respectively. The Company sponsors a 401(k) savings plan under which eligible employees may choose to save up to 100% of salary compensation on either a pre-tax or after-tax basis, subject to certain IRS limits. Under the plan, the Company matches 100% of participating employee contributions up to 6% of the participant’s eligible compensation. The Company contribution vests over five years. The Company can make additional annual discretionary profit sharing contributions, as determined by the Board of Directors. During 2019 , 2018 and 2017 , the Company’s 401(k) expense was approximately $2.9 million (including a $1.1 million profit sharing contribution), $1.8 million , and $2.0 million (including a $0.5 million profit sharing contribution), respectively. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 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. The Company's stock-based compensation plans at December 31, 2019 are described below. 2011 Long-Term Incentive Plan ("2011 LTIP") : The Company’s 2011 LTIP, as subsequently amended with shareholder approval, has reserved 3,000,000 shares of the Company's common stock for potential stock-based awards. This plan provides for certain stock-based awards such as, but not limited to, stock options, stock appreciation rights and restricted common stock, as well as cash performance awards. As of December 31, 2019 , approximately 1.4 million shares were available for grant under this plan. 2002 Stock Incentive Plan : The Company’s 2002 Stock Incentive Plan, as subsequently amended with shareholder approval, reserved a total of 1,175,000 shares of the Company's common stock for potential stock options. This plan became fully utilized in 2012 and no further awards may be granted under this plan. Acquired Equity Incentive Plan : In 2016, the Company assumed sponsorship of an equity incentive plan of an acquired company to allow for that company's already granted awards that became exercisable upon acquisition to be honored. No further awards may be granted under this assumed plan. In general, for stock options granted the exercise price will not be less than the fair value of the Company’s common stock on the date of grant, the options will become exercisable based upon vesting terms determined by the committee, and the options will expire ten years after the date of grant. In general, for restricted stock granted the shares are issued at the fair value of the Company’s common stock on the date of grant, are restricted as to transfer, but are not restricted as to dividend payments or voting rights, and the transfer restrictions lapse over time, depending upon vesting terms provided for in the grant and contingent upon continued employment. A Black-Scholes model is utilized to estimate the fair value of stock options. See Note 1 for the Company’s accounting policy on stock-based compensation. The weighted average assumptions used in the model for valuing stock option grants were as follows. 2019 2018 2017 Dividend yield — % — % — % Expected volatility 25 % 25 % 25 % Risk-free interest rate 1.75 % 2.61 % 2.14 % Expected average life 7 years 7 years 7 years Weighted average per share fair value of options $ 21.30 $ 17.36 $ 15.80 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, 2016 922,026 $ 24.39 Granted 949,500 49.93 Exercise of stock options * (209,371 ) 18.15 Forfeited (18,900 ) 35.36 Outstanding – December 31, 2017 1,643,255 $ 39.82 8.1 $ 24,525 Granted 15,500 52.76 Exercise of stock options * (70,556 ) 21.52 Forfeited (6,500 ) 39.43 Outstanding – December 31, 2018 1,581,699 $ 40.77 7.4 $ 13,825 Granted 203,000 69.69 Exercise of stock options * (337,428 ) 24.15 Forfeited (3,538 ) 27.43 Outstanding – December 31, 2019 1,443,733 $ 48.75 7.4 $ 36,428 Exercisable – December 31, 2019 561,633 $ 42.91 6.7 $ 17,384 *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, and accordingly 142,752 shares, 6,411 shares, and 85,422 shares were surrendered during 2019 , 2018 , and 2017 , respectively. 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 in 2019 , 2018 , and 2017 was approximately $13.9 million , $2.2 million , and $7.5 million , respectively. The following options were outstanding at December 31, 2019 . Number of Shares Weighted Average Exercise Price Weighted Average Remaining Life (Years) Outstanding Exercisable Outstanding Exercisable Outstanding Exercisable $13.73 – $30.00 130,436 94,936 $ 22.37 $ 21.85 4.2 4.1 $30.01 – $40.00 155,747 89,747 35.92 35.51 6.4 6.3 $40.01 – $50.00 804,050 319,850 48.86 48.86 7.4 7.4 $50.01 – $60.00 155,500 57,100 56.09 56.23 7.9 7.9 $60.01 – $70.50 198,000 — 70.01 — 9.9 0.0 1,443,733 561,633 $ 48.75 $ 42.91 7.4 6.7 A summary of the Company’s restricted stock activity is summarized below. Restricted Stock Restricted Shares Outstanding Weighted Average Grant Date Fair Value Outstanding – December 31, 2016 42,949 $ 26.80 Granted 9,240 57.75 Vested * (20,514 ) 29.87 Forfeited (755 ) 16.50 Outstanding – December 31, 2017 30,920 $ 34.26 Granted 18,256 52.55 Vested * (19,661 ) 43.58 Forfeited (3 ) 16.50 Outstanding – December 31, 2018 29,512 $ 39.37 Granted 12,498 67.59 Vested * (19,081 ) 51.77 Forfeited (408 ) 16.50 Outstanding – December 31, 2019 22,521 $ 44.94 *The terms of the restricted stock agreements permit the surrender of shares to the Company upon vesting in order to satisfy applicable tax withholding at the minimum statutory withholding rate, and accordingly 4,688 shares, 3,948 shares, and 5,266 shares were surrendered during 2019 , 2018 , and 2017 , respectively. The Company recognized $4.8 million , $4.7 million and $3.1 million of stock-based compensation expense (included in personnel on the consolidated statements of income) during the years ended December 31, 2019 , 2018 , and 2017 , respectively, associated with its common stock awards granted to officers and employees. As of December 31, 2019 , there was approximately $13.1 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 $2.3 million and $0.2 million for the years ended December 31, 2019 and 2018 , respectively, for the tax impact of stock option exercises and vesting of restricted stock. In addition, during 2019 and 2018 , the Company recognized approximately $0.3 million and $0.2 million , respectively, of director expense (included in other expense on the consolidated statements of income) for restricted stock grants with immediate vesting to non-employee directors totaling 4,257 shares in 2019 and 3,510 shares in 2018 . |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY As of December 31, 2019 , the Board of Directors has authorized the use of up to $86 million to repurchase up to 1,975,000 shares of outstanding common stock through our common stock repurchase program. During 2019 , $18.7 million was utilized to repurchase and cancel nearly 310,800 common shares at a weighted average price of $60.17 , bringing the life-to-date cumulative totals to $65.0 million to repurchase and cancel over 1.4 million common shares. As of December 31, 2019 , there remained $21.0 million authorized under the repurchase program to be utilized from time-to-time to repurchase common shares in the open market, through block transactions or in private transactions. See Note 14 , “ Related Party Transactions ” for additional information on common stock repurchases in private transactions with related parties. On November 8, 2019, in connection with its acquisition of Choice, the Company issued 1,184,102 shares of its common stock for consideration of $79.8 million plus cash consideration of $1.7 million for outstanding stock options. Approximately $0.2 million in direct stock issuance costs for the merger were incurred and charged against additional paid-in capital. See Note 2 for additional information on the Company’s acquisitions. On April 28, 2017, in connection with its acquisition of First Menasha, the Company issued 1,309,885 shares of its common stock for consideration of $62.2 million plus cash consideration of $19.3 million . Approximately $0.2 million in direct stock issuance costs for the merger were incurred and charged against additional paid-in capital. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The current and deferred amounts of income tax expense were as follows. Years Ended December 31, (in thousands) 2019 2018 2017 Current $ 15,353 $ 14,967 $ 10,952 Deferred 1,105 (1,521 ) 4,430 Adjustment to the net deferred tax asset for the Tax Cuts and Jobs Act — — 885 Income tax expense $ 16,458 $ 13,446 $ 16,267 On December 22, 2017, the Tax Cuts and Jobs Act was signed into law. The new law amended the Internal Revenue Code to reduce corporate tax rates and modify various tax policies, credits, and deductions. The corporate federal tax rate was reduced from a maximum of 35% to a flat 21% rate, which was effective for the Company beginning January 1, 2018. As a result of the corporate tax rate reduction, the Company reduced its net deferred tax asset for the year ended December 31, 2017, by $885,000 , which was recognized as additional income tax expense. The differences between the income tax expense recognized and the amount computed by applying the statutory federal income tax rate (21% for 2019 and 2018 and 35% for 2017) to the income before income taxes, less noncontrolling interest, for the years ended as indicated are included in the following table. Years Ended December 31, (in thousands) 2019 2018 2017 Tax on pretax income, less noncontrolling interest, at statutory rates $ 14,931 $ 11,441 $ 17,296 State income taxes, net of federal effect 3,672 3,308 2,242 Tax-exempt interest income (609 ) (574 ) (1,073 ) Non-deductible interest disallowance 29 30 28 Increase in cash surrender value life insurance (573 ) (508 ) (807 ) Non-deductible business entertainment 189 156 168 Stock-based employee compensation (2,347 ) (232 ) (62 ) Non-deductible compensation 3,122 — — Adjustment to the net deferred tax asset for the Tax Cuts and Jobs Act — — 885 Deduction attributable to share-based payments — — (1,854 ) Sale of UFS (2,176 ) — — Other, net 220 (175 ) (556 ) Income tax expense $ 16,458 $ 13,446 $ 16,267 The net deferred tax asset includes the following amounts of deferred tax assets and liabilities. (in thousands) December 31, 2019 December 31, 2018 Deferred tax assets: ALLL $ 4,985 $ 5,240 Net operating loss carryforwards 1,808 2,202 Credit carryforwards 43 43 Compensation 3,477 2,408 Other 2,830 2,549 Other real estate 201 103 Unrealized loss on securities AFS — 1,740 Total deferred tax assets 13,344 14,285 Deferred tax liabilities: Premises and equipment (1,390 ) (821 ) Prepaid expenses (778 ) (693 ) Investment securities (755 ) (1,723 ) Core deposit and other intangibles (2,836 ) (3,563 ) Purchase accounting adjustments to liabilities (2,375 ) (2,011 ) Other (1,391 ) (1,021 ) Unrealized gain on securities AFS (1,879 ) — Total deferred tax liabilities (11,404 ) (9,832 ) Net deferred tax assets $ 1,940 $ 4,453 A valuation allowance is required if it is more likely than not that some portion of the deferred tax asset will not be realized. At December 31, 2019 and 2018 , no valuation allowance was determined to be necessary. At December 31, 2019 , the Company had a federal and state net operating loss carryforward of $3.7 million and $24.7 million , respectively. The entire federal and state net operating loss carryforwards were the result of the Company’s mergers with Mid-Wisconsin, Baylake, First Menasha, and Choice. The federal and state net operating loss carryovers resulting from the mergers have been included in the IRC section 382 limitation calculation and are being limited to the overall amount expected to be realized. The Company’s federal income tax returns are open and subject to examination from the 2015 tax return year and forward. The years open to examination by state and local government authorities varies by jurisdiction. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, financial guarantees, and standby letters of credit. Such commitments may involve, to varying degrees, elements of credit risk in excess of amounts recognized on the consolidated balance sheets. See Note 1 for the Company’s accounting policy on commitments and contingencies. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and issuing letters of credit as they do for on-balance sheet instruments. A summary of the contract or notional amount of the Company’s exposure to off-balance sheet risk was as follows. (in thousands) December 31, 2019 December 31, 2018 Commitments to extend credit $ 773,555 $ 721,098 Financial standby letters of credit 10,730 8,571 Performance standby letters of credit 8,469 7,094 Interest rate lock commitments to originate residential mortgage loans held for sale and forward commitments to sell residential mortgage loans held for sale are considered derivative instruments and the contractual amounts were $43.4 million and $16.3 million , respectively, at December 31, 2019 . The fair value of these commitments was not material at December 31, 2019 . Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commercial-related commitments to extend credit represented 74% and 77% of the total year-end commitments for 2019 and 2018 , respectively, and were predominantly commercial lines of credit that carry a term of one year or less. The commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Financial and performance standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Financial standby letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and the third party, while performance standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party. Both of these guarantees are primarily issued to support public and private borrowing arrangements and, generally, have terms of one year or less. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company holds collateral, which may include accounts receivable, inventory, property, equipment, and income-producing properties, supporting those commitments if deemed necessary. In the event the customer does not perform in accordance with the terms of the agreement with the third-party, the Company would be required to fund the commitment. The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount. If the commitment is funded, the Company would be entitled to seek recovery from the customer. At December 31, 2019 and 2018 , no amounts have been recorded as liabilities for the Company’s potential obligations under these guarantees. The Company has federal funds lines available with other financial institutions where funds may be borrowed on a short-term basis at the market rate in effect at the time of the borrowing. Total federal funds lines of $175 million were available at both December 31, 2019 and 2018 . In the normal course of business, the Company is involved in various legal proceedings. In the opinion of management, any liability resulting from such proceedings would not have a material adverse effect on the consolidated financial statements. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS The Company conducts transactions, in the normal course of business, with its directors and officers, including companies in which they have a beneficial interest. It is the Company’s policy to comply with federal regulations that require that these transactions with directors and executive officers be made on substantially the same terms as those prevailing at the time made for comparable transactions to other persons. Related party loans totaled approximately $86 million and $84 million at December 31, 2019 and 2018 , respectively. Nicolet has an active common stock repurchase program that allows for the repurchase of common stock in the open market, through block transactions, or in private transactions. During 2019 , Nicolet repurchased common stock in private transactions from two executives under this repurchase program, including 32,415 shares for $2.2 million (or an average cost per share of $69.21 ) from Robert B. Atwell and 33,993 shares for $2.2 million (or an average cost per share of $64.02 ) from Michael E. Daniels. These private transactions were made in conjunction with large stock option exercises by the executives. See Note 10 for additional information on stock option activity and see Note 11 for additional information on the common stock repurchase program. As described in Note 1 , the Company has a 50% ownership in a joint venture with the Firm in connection with the Company’s headquarters facility. The Firm is considered a related party, as one of its principals is a Board member and shareholder of the Company. The Bank incurred approximately $1.2 million in annual rent expense to the joint venture during 2019 , and $1.1 million in annual rent during both 2018 and 2017 . In October 2013, the Company entered into a lease for a branch location in a facility owned by a different member of the Company’s Board and incurred less than $120,000 annually of rent expense on this facility during 2019 , 2018 , and 2017 . During 2019, this same Board member participated in a competitive bid process for and was awarded the contract as general contractor for the 2019 reconstruction of a different existing branch location, payments for which are estimated to total $1.3 million but not yet paid in full. Payments made during 2019 for progress on this branch reconstruction were $0.4 million , of which at least 75% was passed through to various subcontractors. In addition, during 2018, this Board member participated in a competitive bid process for and was awarded the contract as general contractor for the 2018 reconstruction of another branch location. Total payments for the 2018 branch reconstruction were $1.0 million , of which at least 75% of these payments were passed through to various subcontractors. In February 2016, the Company entered into a lease agreement for a non-branch location owned by a relative of a senior management team member and paid approximately $138,000 in both 2018 and 2017 , to the company owned by the relative. This non-branch location was vacated and the lease terminated in first quarter 2019 for a final payment of $47,500 This same relative, who is employed by the Company as a financial advisor, received approximately $650,000 , $657,000 , and $668,000 in 2019 , 2018 , and 2017 , respectively, in compensation. Another relative of the same senior management team member, who is also employed by the Company as a financial advisor, received approximately $287,500 , $284,000 , and $257,000 in 2019 , 2018 , and 2017 , respectively, in compensation. |
ASSET GAINS (LOSSES), NET
ASSET GAINS (LOSSES), NET | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
ASSET GAINS (LOSSES), NET | ASSET GAINS (LOSSES), NET Components of the net gains (losses) on assets are as follows. Years Ended December 31, (in thousands) 2019 2018 2017 Gains (losses) on sales of securities AFS, net $ (22 ) $ (212 ) $ 1,220 Gains (losses) on equity securities, net 1,115 77 — Gains (losses) on sales of OREO, net (88 ) 1,032 258 Write-downs of OREO (300 ) (120 ) (127 ) Write-down of other investment (100 ) — — Gains (losses) on sales of other investments, net 7,442 187 — Gains (losses) on sales or dispositions of other assets, net (150 ) 205 678 Asset gains (losses), net $ 7,897 $ 1,169 $ 2,029 |
REGULATORY CAPITAL REQUIREMENTS
REGULATORY CAPITAL REQUIREMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
REGULATORY CAPITAL REQUIREMENTS | REGULATORY CAPITAL REQUIREMENTS The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company and Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk-weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain minimum amounts and ratios of Total, Tier 1 and common equity Tier 1 (“CET1”) capital (as defined in the regulations) to risk-weighted assets (as defined), and Tier 1 capital (as defined) to average assets (as defined). Management believes the Company and the Bank met all capital adequacy requirements to which they are subject as of December 31, 2019 and 2018 . As of December 31, 2019 and 2018 , the most recent notifications from the regulatory agencies categorized the Bank as well-capitalized under the regulatory framework for prompt corrective action. To be categorized as well-capitalized, an institution must maintain minimum Total risk-based, Tier 1 risk-based, CET1 risk-based and Tier 1 leverage ratios as set forth in the following table. There are no conditions or events since these notifications that management believes have changed the Bank’s category. The Company’s and the Bank’s actual regulatory capital amounts and ratios are presented in the following table. Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions (2) (in thousands) Amount Ratio (1) Amount Ratio (1) Amount Ratio (1) December 31, 2019 Company Total risk-based capital $ 404,573 13.4 % $ 241,333 8.0 % Tier 1 risk-based capital 378,608 12.6 181,000 6.0 Common equity Tier 1 capital 348,454 11.6 135,750 4.5 Leverage 378,608 11.9 127,036 4.0 Bank Total risk-based capital $ 323,432 10.8 % $ 240,551 8.0 % $ 300,688 10.0 % Tier 1 risk-based capital 309,460 10.3 180,413 6.0 240,551 8.0 Common equity Tier 1 capital 309,460 10.3 135,310 4.5 195,447 6.5 Leverage 309,460 9.8 126,660 4.0 158,325 5.0 December 31, 2018 Company Total risk-based capital $ 326,235 12.9 % $ 202,836 8.0 % Tier 1 risk-based capital 301,125 11.9 152,127 6.0 Common equity Tier 1 capital 271,435 10.7 114,095 4.5 Leverage 301,125 10.4 115,483 4.0 Bank Total risk-based capital $ 274,492 10.8 % $ 202,800 8.0 % $ 253,501 10.0 % Tier 1 risk-based capital 261,339 10.3 152,100 6.0 202,800 8.0 Common equity Tier 1 capital 261,339 10.3 114,075 4.5 164,775 6.5 Leverage 261,339 9.1 115,280 4.0 144,100 5.0 (1) The Total risk-based capital ratio is defined as Tier 1 capital plus tier 2 capital divided by total risk-weighted assets. The Tier 1 risk-based capital ratio is defined as Tier 1 capital divided by total risk-weighted assets. CET1 risk-based capital ratio is defined as Tier 1 capital, with deductions for goodwill and other intangible assets (other than mortgage servicing assets), net of associated deferred tax liabilities, and limitations on the inclusion of deferred tax assets, mortgage servicing assets and investments in other financial institutions, in each case as provided further in the rules, divided by total risk-weighted assets. The Leverage ratio is defined as Tier 1 capital divided by the most recent quarter’s average total assets as adjusted. (2) Prompt corrective action provisions are not applicable at the bank holding company level. Dividends declared by the Bank that exceed the retained net income for the most current year plus retained net income for the preceding two years must be approved by Federal regulatory agencies. At December 31, 2019 , the Bank could pay dividends of approximately $6 million to the Company without seeking regulatory approval. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 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 December 31, 2019 U.S. government agency securities $ 16,460 $ — $ 16,460 $ — State, county and municipals 156,393 — 156,393 — Mortgage-backed securities 195,018 — 195,018 — Corporate debt securities 81,431 — 78,301 3,130 Securities AFS $ 449,302 $ — $ 446,172 $ 3,130 Other investments (equity securities) $ 3,375 $ 3,375 $ — $ — December 31, 2018 U.S. government agency securities $ 21,649 $ — $ 21,649 $ — State, county and municipals 160,526 — 160,460 66 Mortgage-backed securities 131,644 — 131,644 — Corporate debt securities 86,325 — 77,901 8,424 Securities AFS $ 400,144 $ — $ 391,654 $ 8,490 Other investments (equity securities) $ 2,650 $ 2,650 $ — $ — 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 December 31, 2019 and 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 Level 3 securities AFS measured at fair value on a recurring basis. (in thousands) Years Ended Level 3 Fair Value Measurements: December 31, 2019 December 31, 2018 Balance at beginning of year $ 8,490 $ 9,151 Acquired balances 300 — Paydowns/Sales/Settlements (5,660 ) (661 ) Balance at end of year $ 3,130 $ 8,490 Nonrecurring basis fair value measurements: The following table presents the Company’s assets measured at fair value on a nonrecurring basis, aggregated by the 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 December 31, 2019 Impaired loans $ 16,150 $ — $ — $ 16,150 OREO 1,000 — — 1,000 MSR asset 8,420 — — 8,420 December 31, 2018 Impaired loans $ 9,939 $ — $ — $ 9,939 OREO 420 — — 420 MSR asset 6,347 — — 6,347 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. December 31, 2019 (in thousands) Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 182,059 $ 182,059 $ 182,059 $ — $ — Certificates of deposit in other banks 19,305 19,310 — 19,310 — Securities AFS 449,302 449,302 — 446,172 3,130 Other investments 24,072 24,072 3,375 16,759 3,938 Loans held for sale 2,706 2,753 — 2,753 — Loans, net 2,559,779 2,593,110 — — 2,593,110 BOLI 78,140 78,140 78,140 — — MSR asset 5,919 8,420 — — 8,420 Financial liabilities: Deposits $ 2,954,453 $ 2,956,229 $ — $ — $ 2,956,229 Long-term borrowings 67,629 66,816 — 25,075 41,741 December 31, 2018 (in thousands) Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 249,526 $ 249,526 $ 249,526 $ — $ — Certificates of deposit in other banks 993 993 — 993 — Securities AFS 400,144 400,144 — 391,654 8,490 Other investments 17,997 17,997 2,650 13,189 2,158 Loans held for sale 1,639 1,662 — 1,662 — Loans, net 2,153,028 2,139,322 — — 2,139,322 BOLI 66,310 66,310 66,310 — — MSR asset 3,749 6,347 — — 6,347 Financial liabilities: Deposits $ 2,614,138 $ 2,614,995 $ — $ — $ 2,614,995 Long-term borrowings 77,305 75,923 — 34,907 41,016 The carrying value of certain assets and liabilities such as cash and cash equivalents, BOLI, nonmaturing deposits, and short-term borrowings, 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 the exchange-traded equity securities are discussed under "Recurring basis fair value measurements" above. The carrying amount of Federal Reserve Bank, Bankers Bank, Federal Agricultural Mortgage Corporation, 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 valuation represents a Level 3 measurement. Lending-related commitments : At December 31, 2019 and 2018 , the estimated fair value of letters of credit, interest rate lock commitments on residential mortgage loans, and outstanding mandatory commitments to sell residential mortgage loans into the secondary market 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. |
PARENT COMPANY ONLY FINANCIAL I
PARENT COMPANY ONLY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
PARENT COMPANY ONLY FINANCIAL INFORMATION | PARENT COMPANY ONLY FINANCIAL INFORMATION Condensed Parent Company only financial statements of Nicolet Bankshares, Inc. follow. Balance Sheets December 31, (in thousands) 2019 2018 Assets Cash and due from subsidiary $ 70,426 $ 45,279 Investments 6,650 4,500 Investments in subsidiaries 487,644 384,839 Goodwill (3,266 ) (3,266 ) Other assets 396 53 Total assets $ 561,850 $ 431,405 Liabilities and Stockholders’ Equity Junior subordinated debentures $ 30,575 $ 30,096 Subordinated notes 11,993 11,957 Other liabilities 3,020 2,743 Stockholders’ equity 516,262 386,609 Total liabilities and stockholders’ equity $ 561,850 $ 431,405 Statements of Income Years Ended December 31, (in thousands) 2019 2018 2017 Interest income $ 55 $ 52 $ 46 Interest expense 2,936 2,844 2,415 Net interest expense (2,881 ) (2,792 ) (2,369 ) Dividend income from subsidiaries 50,363 40,775 32,000 Operating expense (321 ) (364 ) (369 ) Gain (loss) on investments, net 1,015 265 1,411 Income tax benefit 506 305 1,329 Earnings before equity in undistributed income (loss) of subsidiaries 48,682 38,189 32,002 Equity in undistributed income (loss) of subsidiaries 5,959 2,847 1,148 Net income attributable to Nicolet Bankshares, Inc. $ 54,641 $ 41,036 $ 33,150 Statements of Cash Flows Years Ended December 31, (in thousands) 2019 2018 2017 Cash Flows From Operating Activities: Net income attributable to Nicolet Bankshares, Inc. $ 54,641 $ 41,036 $ 33,150 Adjustments to reconcile net income to net cash provided by operating activities: Accretion of discounts 515 515 501 (Gain) loss on investments, net (1,015 ) (265 ) (1,411 ) Change in other assets and liabilities, net (421 ) (25 ) (1,384 ) Equity in undistributed (income) loss of subsidiaries, net of dividends (5,959 ) (2,847 ) (1,148 ) Net cash provided by operating activities 47,761 38,414 29,708 Cash Flows from Investing Activities: Proceeds from sale of investments — 708 317 Purchases of investments (2,484 ) (920 ) — Net cash paid in business combinations (412 ) — (19,287 ) Net cash used in investing activities (2,896 ) (212 ) (18,970 ) Cash Flows From Financing Activities: Purchase and retirement of common stock (28,460 ) (22,749 ) (15,007 ) Proceeds from issuance of common stock, net 8,742 1,800 4,030 Net cash used in financing activities (19,718 ) (20,949 ) (10,977 ) Net increase (decrease) in cash and due from subsidiary 25,147 17,253 (239 ) Beginning cash and due from subsidiary 45,279 28,026 28,265 Ending cash and due from subsidiary $ 70,426 $ 45,279 $ 28,026 |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE See Note 1 for the Company’s accounting policy on earnings per common share. Earnings per common share and related information are summarized as follows. Years Ended December 31, (in thousands, except per share data) 2019 2018 2017 Net income attributable to Nicolet Bankshares, Inc. $ 54,641 $ 41,036 $ 33,150 Weighted average common shares outstanding 9,562 9,640 9,440 Effect of dilutive common stock awards 338 316 518 Diluted weighted average common shares outstanding 9,900 9,956 9,958 Basic earnings per common share $ 5.71 $ 4.26 $ 3.51 Diluted earnings per common share $ 5.52 $ 4.12 $ 3.33 Options to purchase less than 0.1 million shares outstanding for the year ended December 31, 2019 were excluded from the calculation of diluted earnings per common share as the effect of their exercise would have been anti-dilutive. Options to purchase approximately 0.1 million shares outstanding for years ended December 31, 2018 and 2017 were excluded from the calculation of diluted earnings per share as the effect of their exercise would have been anti-dilutive. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION See Note 1 for the Company’s accounting policy on revenue recognition in accordance with Topic 606. This guidance does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income categories such as gains or losses associated with mortgage servicing rights, derivatives, and income from BOLI are not within the scope of the new guidance. The main types of revenue contracts within the scope of Topic 606 include trust services income, brokerage fee income, service charges on deposit accounts, card interchange income, and certain other noninterest income. These contracts are discussed in detail below: Trust services and brokerage fee income : A contract between the Company and its customers to provide fiduciary and / or investment administration services on trust accounts and brokerage accounts in exchange for a fee. Trust services and brokerage fee income is generally based upon the month-end market value of the assets under management and the applicable fee rate, which is recognized over the period the underlying trust or brokerage account is serviced (generally on a monthly basis). Such contracts are generally cancellable at any time, with the customer subject to a pro-rated fee in the month of termination. Service charges on deposit accounts : The deposit contract obligates the Company to serve as a custodian of the customer’s deposited funds and is generally terminable at will by either party. This contract permits the customer to access the funds on deposit and request additional services related to the deposit account. Service charges on deposit accounts consist of account analysis fees (net fees earned on analyzed business and public checking accounts), monthly service charges, nonsufficient fund (“NSF”) charges, and other deposit account related charges. The Company’s performance obligation for account analysis fees and monthly service charges is generally satisfied, and the related revenue recognized, over the period in which the service is provided (typically on a monthly basis); while NSF charges and other deposit account related charges are largely transactional based and the related revenue is recognized at the time the service is provided. Card interchange income : A contract between the Company, as a card-issuing bank, and its customers whereby the Company receives a transaction fee from the merchant’s bank whenever a customer uses a debit or credit card to make a purchase. The performance obligation is completed and the fees are recognized as the service is provided (i.e., when the customer uses a debit or credit card). Other noninterest income : Other noninterest income includes several items, such as wire transfer income, check cashing fees, check printing fees, safe deposit box rental fees, management fee income, and consulting fees. These fees are generally recognized at the time the service is provided. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT On February 17, 2020, Nicolet entered into a definitive merger agreement with Commerce Financial Holdings, Inc. (“Commerce”) pursuant to which Commerce will merge with and into Nicolet, providing entry into Wisconsin's largest MSA. The acquisition will involve stock-for-stock consideration at a fixed exchange ratio, subject to cap and collar provisions provided for in the merger agreement. At December 31, 2019, Commerce had total assets of $713 million , loans of $604 million , deposits of $610 million , and equity of $66 million . Commerce would represent approximately 16% of the combined company's assets at December 31, 2019. The merger is expected to close in the third quarter of 2020 and remains subject to customary closing conditions, including approval by Commerce shareholders and regulatory approvals. |
NATURE OF BUSINESS AND SIGNIF_2
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Principles of Consolidation | Principles of Consolidation : The consolidated financial statements of the Company include the accounts of the Bank, Brookfield Investments, Nicolet Advisory and the JV. The JV underlies the noncontrolling interest reflected in the consolidated financial statements. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and conform to general practices within the banking industry. All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements. Results of operations of companies purchased, if any, are included from the date of acquisition. |
Operating Segment | Operating Segment: The consolidated income of the Company is derived principally from the Bank, which conducts lending (primarily commercial-based loans, as well as residential and consumer loans) and deposit gathering (including other banking- and deposit-related products and services, such as ATMs, safe deposit boxes, check cashing, wires, and debit cards) to businesses, consumers and governmental units principally in its trade area of northeastern and central Wisconsin, and Menominee, Michigan, trust services, brokerage services (delivered through the Bank and Nicolet Advisory), and the support to deliver, fund and manage all such banking and wealth management services to its customer base. The individual contributions of the JV, Brookfield Investments and Nicolet Advisory were not significant to the consolidated balance sheet or net income for 2019 , 2018 , or 2017 . While the chief operating decision makers monitor the revenue streams of the various products and services, and evaluate costs, balance sheet positions and quality, all such products, services and activities are directly or indirectly related to the business of community banking, with no regular, formal or material segment delineations. Operations are managed and financial performance is evaluated on a company-wide basis, and accordingly, all the financial service operations are considered by management to be aggregated in one reportable operating segment. |
Use of Estimates | Use of 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, 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. |
Business Combinations | Business Combinations: The Company accounts for business combinations under the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations (“ASC 805”). The Company recognizes the full fair value of the assets acquired and liabilities assumed and immediately expenses transaction costs. There is no separate recognition of the acquired allowance for loan losses on the acquirer’s balance sheet as credit related factors are incorporated directly into the fair value of the net tangible and intangible assets acquired. If the amount of consideration exceeds the fair value of assets purchased less the fair value of liabilities assumed, goodwill is recorded. Alternatively, if the amount by which the fair value of assets purchased exceeds the fair value of liabilities assumed and consideration paid, a gain (“bargain purchase gain”) is recorded. Fair values are subject to refinement for up to one year after the closing date of an acquisition as information relative to closing date fair values becomes available. Results of operations of the acquired business are included in the statements of income from the effective date of the acquisition. Additional information regarding recent acquisitions is provided in Note 2 . |
Cash and Cash Equivalents | Cash and Cash Equivalents : For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash and due from banks, interest-earning deposits in other banks with original maturities of less than 90 days, if any, and federal funds sold. The Bank maintains amounts in due from banks which, at times, may exceed federally insured limits. Management monitors these correspondent relationships. The Bank has not experienced any losses in such accounts. The Bank may have restrictions on cash and due from banks as it is required to maintain certain vault cash and reserve balances with the Federal Reserve Bank to meet specific reserve requirements. |
Securities Available for Sale | Securities Available for Sale : Securities classified as AFS are those securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity, and includes U.S. government agency securities; state, county and municipal securities; mortgage-backed securities; and corporate debt securities. Effective January 1, 2018, the Company adopted a new accounting standard, which requires equity securities with readily determinable fair values to be measured at fair value with changes in the fair value recognized through net income (see Recent Accounting Pronouncements Adopted within Note 1 for the impact of this new accounting guidance). Such securities are no longer reflected as securities AFS, and are now reflected within other investments on the consolidated balance sheets. Prior periods have not been restated for the impact of this accounting change. Any decision to sell a security classified as AFS would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. Securities classified as AFS are carried at fair value, with unrealized gains or losses, net of related deferred income taxes, reported as increases or decreases in accumulated other comprehensive income. Realized gains or losses on sales of securities AFS (using the specific identification method) and declines in value judged to be other-than-temporary are included in the consolidated statements of income under asset gains (losses), net. Premiums and discounts are amortized or accreted into interest income over the life of the related securities using the effective interest method. See Note 3 for additional disclosures on AFS securities. Management evaluates securities AFS for other-than-temporary impairment on a quarterly basis. A decline in the market value of any investment below amortized cost that is deemed other-than-temporary is charged to earnings for the decline in value deemed to be credit related and a new cost basis in the security is established. The decline in value attributed to non-credit related factors considered temporary in nature is recognized in other comprehensive income. In evaluating other-than-temporary impairment, management considers the length of time and extent to which the fair value has been less than cost, and the financial condition and near-term prospects of the issuer for a period sufficient to allow for any anticipated recovery in fair value in the near term. |
Other Investments | Other Investments : Other investments include equity securities with readily determinable fair values, “restricted” equity securities, and private company securities. At December 31, 2019 , other investments included $3.4 million of equity securities with readily determinable fair values, $16.8 million of "restricted" equity securities, and $3.9 million of private company securities. As a member of the Federal Reserve Bank System, Federal Agricultural Mortgage Corporation, and the Federal Home Loan Bank (“FHLB”) System, the Bank is required to maintain an investment in the capital stock of these entities. These equity securities are “restricted” in that they can only be sold back to the respective institutions or another member institution at par. Therefore, they are less liquid than other exchange traded equity securities. As no ready market exists for these stocks, and they have no quoted market value, these investments are carried at cost. Also included are investments in other private companies that do not have quoted market prices, which are carried at cost less other-than-temporary impairment charges, if any. Management’s evaluation of these other investments for impairment includes consideration of the financial condition and other available relevant information of the issuer. |
Loans Held for Sale | Loans Held for Sale : Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value as determined on an aggregate basis and generally consist of current production of certain fixed-rate residential first mortgages. The amount by which cost exceeds market value is recorded as a valuation allowance and charged to earnings. Changes, if any, in the valuation allowance are also included in earnings in the period in which the change occurs. As of December 31, 2019 and 2018 , no valuation allowance was necessary. Loans held for sale may be sold servicing retained or servicing released, and are generally sold without recourse. The carrying value of mortgage loans sold with servicing retained is reduced by the amount allocated to the servicing right at the time of sale. Gains and losses on sales of mortgage loans held for sale are included in earnings in mortgage income, net. |
Credit-Related Financial Instruments | Credit-Related Financial Instruments : In the ordinary course of business the Company has entered into financial instruments consisting of commitments to extend credit, financial standby letters of credit, and performance standby letters of credit. Financial standby letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and the third party, while performance standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party. Such financial instruments are recorded in the consolidated financial statements when they are funded. See Note 13 for additional information and disclosures on credit-related financial instruments. |
Transfers of Financial Assets | Transfers of Financial Assets : Transfers of financial assets, primarily in loan participation activities, are accounted for as sales only when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of the right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return assets. |
Premises and Equipment | Premises and Equipment : Premises and equipment are stated at cost less accumulated depreciation and amortization. Premises and equipment from acquisitions were recorded at estimated fair value on the respective dates of acquisition. Depreciation is computed on a straight-line basis over the estimated useful lives of the related assets. Leasehold improvements are amortized on the straight-line method over the shorter of the estimated useful lives of the improvements or the terms of the related leases. Maintenance and repairs are expensed as incurred. See Note 5 for additional information on premises and equipment. Estimated useful lives of new premises and equipment generally range as follows: Building and improvements 25 – 40 years Leasehold improvements 5 – 15 years Furniture and equipment 3 – 10 years |
Other Real Estate Owned ("OREO") | Other Real Estate Owned (“OREO”) : OREO acquired through partial or total satisfaction of loans or bank facilities no longer in use are carried at fair value less estimated costs to sell. Any write-down in the carrying value of loans or vacated bank premises at the time of transfer to OREO is charged to the ALLL or to write-down of assets, respectively. OREO properties acquired in conjunction with the acquisition transactions were recorded at fair value on the date of acquisition. Any subsequent write-downs to reflect current fair value, as well as gains or losses on disposition and revenues and expenses incurred to hold and maintain such properties, are treated as period costs. At December 31, 2019 and 2018 , OREO was $1.0 million and $0.4 million , respectively. |
Goodwill and Other Intangibles | Goodwill and Other Intangibles : Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired. Goodwill is not amortized but, instead, is subject to impairment tests on at least an annual basis or more frequently if certain events or circumstances occur. Other intangibles include core deposit intangibles (which represent the value of acquired customer core deposit bases) and customer list intangibles. The core deposit intangibles have an estimated finite life, are amortized on an accelerated basis over a 10 -year period, and are subject to periodic impairment evaluation. The customer list intangibles have finite lives and are amortized on a straight-line basis to expense over their initial weighted average life of approximately 12 years as of acquisition. See Note 6 for additional information on goodwill and other intangibles. 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. |
Mortgage Servicing Rights ("MSRs") | Mortgage Servicing Rights (“MSRs”): If the Company sells originated residential mortgages into the secondary market and retains the right to service the loans sold, then a mortgage servicing right asset (liability) is capitalized upon sale with the offsetting effect recorded as a gain (loss) on sale of loans in earnings (included in mortgage income, net), representing the then-current estimated fair value of future net cash flows expected to be realized for performing the servicing activities. MSRs when purchased (including MSRs purchased in acquisitions) are initially recorded at their then-estimated fair value. As the Company has not elected to measure any class of servicing assets under the fair value method, the Company utilizes the amortization method. MSRs are amortized in proportion to and over the period of estimated net servicing income, with the amortization charged to earnings (included in mortgage income, net). MSRs are carried at the lower of initial capitalized amount, net of accumulated amortization, or estimated fair value, and are included in other assets in the consolidated balance sheets. Loan servicing fee income for servicing loans is typically based on a contractual percentage of the outstanding principal and is recorded as income when earned (included in mortgage income, net with less material late fees and ancillary fees related to loan servicing). The Company periodically evaluates its MSRs 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). The value of MSRs is adversely affected when mortgage interest rates decline and mortgage loan prepayments increase. A valuation allowance is established through a charge to earnings (included in mortgage income, net) to the extent the amortized cost of the MSRs exceeds the estimated fair value by stratification. If it is later determined that all or a portion of the temporary impairment no longer exists for a stratification, the valuation is reduced through a recovery to earnings, though not beyond the net amortized cost carried. An other-than-temporary impairment (i.e., recoverability is considered remote when considering interest rates and loan payoff activity) is recognized as a write-down of the MSRs and the related valuation allowance (to the extent a valuation allowance is available) and then against earnings. A direct write-down permanently reduces the carrying value of the MSRs and valuation allowance, precluding subsequent recoveries. No valuation allowance or impairment charge was recorded for 2019 or 2018 . See Note 6 for additional information on MSRs. |
Bank-owned Life Insurance ("BOLI") | Bank-owned Life Insurance (“BOLI”): The Company owns BOLI on certain executives and employees. BOLI balances are recorded at their cash surrender values. Changes in the cash surrender values and death proceeds exceeding carrying values are included in noninterest income. |
Short-term Borrowings | Short-term Borrowings : Short-term borrowings consist primarily of overnight Federal funds purchased and securities sold under agreements to repurchase (“repos”), or other short-term borrowing arrangements with an original maturity of one year or less. Repos are with commercial deposit customers, and are treated as financing activities carried at the amounts that will be subsequently repurchased as specified in the respective agreements. Repos generally mature within one to four days from the transaction date. The Company may be required to provide additional collateral based on the fair value of the underlying securities. |
Stock-based Compensation Plans | Stock-based Compensation: Share-based payments to employees, including grants of restricted stock or stock options, are valued at fair value of the award on the date of grant and expensed on a straight-line basis as compensation expense over the applicable vesting period. A Black-Scholes model is utilized to estimate the fair value of stock options and the quoted market price of the Company’s stock at the date of grant is used to estimate the fair value of restricted stock awards. See Note 10 for additional information on stock-based compensation. |
Income Taxes | Income Taxes : The Company files a consolidated federal income tax return and a combined state income tax return (both of which include the Company and its wholly owned subsidiaries). Accordingly, amounts equal to tax benefits of those companies having taxable federal losses or credits are reimbursed by the companies that incur federal tax liabilities. Amounts provided for income tax expense are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable under tax laws. Deferred income tax assets and liabilities are computed quarterly for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax rates applicable to the periods in which the differences are expected to affect taxable income. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through income tax expense. Valuation allowances are established when it is more likely than not that a portion of the full amount of the deferred tax asset will not be realized. In assessing the ability to realize deferred tax assets, management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies. At acquisition, deferred taxes were evaluated in respect to the acquired assets and assumed liabilities (including the acquired net operating losses), and a net deferred tax asset was recorded. Certain limitations within the provisions of the tax code are placed on the amount of net operating losses which can be utilized as part of acquisition accounting rules and were incorporated into the calculation of the deferred tax asset. In addition, a portion of the fair market value discounts on PCI loans which resolved in the first twelve months after the acquisition were disallowed under provisions of the tax code. The Company may also recognize a liability for unrecognized tax benefits from uncertainty in income tax positions. Unrecognized tax benefits represent the differences between a tax position taken or expected to be taken in a tax return and the benefit recognized and measured in the consolidated financial statements. At December 31, 2019 , the Company determined it had no significant uncertainty in income tax positions. Interest and penalties related to unrecognized tax benefits are classified as income tax expense. See Note 12 for additional information on income taxes. |
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 common shares adjusted for the dilutive effect of outstanding common stock awards, if any. See Note 19 for additional information on earnings per common share. |
Treasury Stock | Treasury Stock : Treasury stock is accounted for at cost on a first-in-first-out basis. It is the Company’s general practice to cancel treasury stock shares in the same quarter as purchased, and thus, not carry a treasury stock balance. |
Comprehensive Income | Comprehensive Income : Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on securities AFS, bypass the statement of income and instead are reported in accumulated other comprehensive income, as a separate component of the equity section of the balance sheet. Realized gains or losses are reclassified to current period income. Changes in these items, along with net income, are components of comprehensive income. The Company presents comprehensive income in a separate consolidated statement of comprehensive income. |
Revenue Recognition | Revenue Recognition : Accounting principles require that an entity recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The guidance includes a five-step model to apply to revenue recognition, consisting of the following: (1) identify the contract; (2) identify the performance obligation in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue when or as the performance obligation is satisfied. See Note 20 for additional information on Revenue from Contracts with Customers (Topic 606) . |
Reclassifications | Reclassifications : Certain amounts in the 2018 and 2017 consolidated financial statements have been reclassified to conform to the 2019 presentation. |
Recent Accounting Pronouncements Adopted | Recent Accounting Pronouncements 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 5 for the new disclosures required by Topic 842. |
Originated Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans and Allowance for Loan Losses ("ALLL") | Loans and Allowance for Loan Losses (“ALLL”) – Originated Loans : Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are carried at their principal amount outstanding, net of deferred loan fees and costs. Interest income is accrued on the unpaid principal balance using the simple interest method. The accrual of interest income on loans is discontinued when, in the opinion of management, there is reasonable doubt as to the borrower’s ability to meet payment of interest or principal when due. Loans are generally placed on nonaccrual status when contractually past due 90 days or more as to interest or principal, though may be placed in such status earlier based on the circumstances. Loans past due 90 days or more may continue on accrual only when they are well secured and/or in process of collection or renewal. When interest accrual is discontinued, all previously accrued but uncollected interest is reversed against current period interest income. Except in very limited circumstances, cash collections on nonaccrual loans are credited to the loan receivable balance and no interest income is recognized on those loans until the principal balance is paid in full. Accrual of interest may be resumed when the customer is current on all principal and interest payments and has been paying on a timely basis for a sustained period of time. See Note 4 for additional information and disclosures on originated loans. Management considers a loan to be impaired when it is probable the Company will be unable to collect all contractual principal and interest payments due in accordance with the terms of the loan agreement. For determining the appropriateness of the ALLL, management defines impaired loans as nonaccrual credit relationships over $250,000 , all loans determined to be troubled debt restructurings, plus additional loans with impairment risk characteristics. At the time an individual loan goes into nonaccrual status, management evaluates the loan for impairment and possible charge-off regardless of loan size. Typically, impairment amounts for loans under the scope criteria are charged off when the impairment amount is determined. The ALLL represents management’s estimate of probable and inherent credit losses in the Company’s loan portfolio at the balance sheet date. In general, estimating the amount of the ALLL is a function of a number of factors, including but not limited to changes in the loan portfolio, net charge-offs, trends in past due and impaired loans, and the level of potential problem loans, all of which may be susceptible to significant change. Actual credit losses, net of recoveries, are deducted from the ALLL. Loans are charged off when management believes that the collectability of the principal is unlikely. Subsequent recoveries, if any, are credited to the ALLL. A provision for loan losses, which is a charge against income, is recorded to bring the ALLL to a level that, in management’s judgment, is appropriate to absorb probable losses in the loan portfolio. The allocation methodology applied by the Company is designed to assess the overall appropriateness of the ALLL and includes allocations for specifically identified impaired loans and loss factors for all remaining loans, with a component primarily based on historical loss rates and another component primarily based on other qualitative factors. Impaired loans are individually assessed and are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. Loans that are determined not to be impaired are collectively evaluated for impairment, stratified by type and allocated loss ranges based on the Company’s actual historical loss ratios for each strata, and adjustments are also provided for certain current environmental and qualitative factors. An internal loan review function rates loans using a grading system based on nine different categories. Loans with grades of seven or higher (“classified loans”) represent loans with a greater risk of loss and may be assigned allocations for loss based on specific review of the weaknesses observed in the individual credits if classified as impaired. Classified loans are constantly monitored by the loan review function to ensure early identification of any deterioration. Allocations to the ALLL may be made for specific loans but the entire ALLL is available for any loan that, in management’s judgment, should be charged-off or for which an actual loss is realized. The allowance analysis is reviewed by the Board on a quarterly basis in compliance with internal and regulatory requirements. |
Acquired Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans and Allowance for Loan Losses ("ALLL") | Loans and ALLL – Acquired Loans: The loans purchased in acquisition transactions are acquired loans. Acquired loans are recorded at their estimated fair value at the acquisition date, and are initially classified as either purchase credit impaired (“PCI”) loans (i.e., loans that reflect credit deterioration since origination and it is probable at acquisition that the Company will be unable to collect all contractually required payments) or purchased non-impaired loans (i.e., “performing acquired loans”). See Note 4 for additional information and disclosures on acquired loans. PCI loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality, found in Financial Accounting Standards Board (“FASB”) ASC Topic 310-30, Receivables—Loans and Debt Securities Acquired with Deteriorated Credit Quality . The Company estimates the amount and timing of expected principal, interest and other cash flows for each loan or pool of loans meeting the criteria above, and determines the excess of the loan’s scheduled contractual principal and contractual interest payments over all cash flows expected to be collected at acquisition as an amount that should not be accreted. These credit discounts (“nonaccretable marks”) are included in the determination of the initial fair value for acquired loans; therefore, an allowance for loan losses is not recorded at the acquisition date. Differences between the estimated fair values and expected cash flows of acquired loans at the acquisition date that are not credit-based (“accretable marks”) are subsequently accreted to interest income over the estimated life of the loans using a method that approximates a level yield if the timing and amount of the future cash flows is reasonably estimable. Subsequent to the acquisition date for PCI loans, increases in cash flows over those expected at the acquisition date result in a move of the discount from nonaccretable to accretable. Decreases in expected cash flows after the acquisition date are recognized through the provision for loan losses. All fair value discounts initially recorded on PCI loans were deemed to be credit related. Performing acquired loans are accounted for under FASB ASC Topic 310-20, Receivables—Nonrefundable Fees and Other Costs . Performance of certain loans may be monitored, and based on management’s assessment of the cash flows and other facts available, portions of the accretable difference may be delayed or suspended if management deems appropriate. The Company’s policy for determining when to discontinue accruing interest on performing acquired loans and the subsequent accounting for such loans is essentially the same as the policy for originated loans described above. An ALLL is calculated using a methodology similar to that described for originated loans. Performing acquired loans are subsequently evaluated for any required allowance at each reporting date. Such required allowance for each loan pool is compared to the remaining fair value discount for that pool. If greater, the excess is recognized as an addition to the allowance through a provision for loan losses charge. If less than the discount, no additional allowance is recorded. Charge-offs and losses first reduce any remaining fair value discount for the loan pool and once the discount is depleted, losses are applied against the allowance established for that pool. For PCI loans after acquisition, cash flows expected to be collected are recast for each loan periodically as determined appropriate by management. If the present value of expected cash flows for a loan is less than its carrying value, impairment is reflected by an increase in the ALLL and a charge to the provision for loan losses. If the present value of the expected cash flows for a loan is greater than its carrying value, any previously established ALLL is reversed and any remaining difference increases the accretable yield which will be taken into income over the remaining life of the loan. Loans which were considered troubled debt restructurings prior to the acquisition transaction are not required to be classified as troubled debt restructurings in the Company’s consolidated financial statements unless or until such loans would subsequently meet criteria to be classified as such, since acquired loans were recorded at their estimated fair values at the time of the acquisition. |
NATURE OF BUSINESS AND SIGNIF_3
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives of premises and equipment | Estimated useful lives of new premises and equipment generally range as follows: Building and improvements 25 – 40 years Leasehold improvements 5 – 15 years Furniture and equipment 3 – 10 years |
SECURITIES AVAILABLE FOR SALE (
SECURITIES AVAILABLE FOR SALE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Abstract] | |
Schedule of amortized costs and fair values of securities AFS | Amortized cost and fair value of securities available for sale are summarized as follows. December 31, 2019 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government agency securities $ 16,516 $ 4 $ 60 $ 16,460 State, county and municipals 155,501 1,049 157 156,393 Mortgage-backed securities 193,223 2,492 697 195,018 Corporate debt securities 78,009 3,422 — 81,431 $ 443,249 $ 6,967 $ 914 $ 449,302 December 31, 2018 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government agency securities $ 22,467 $ — $ 818 $ 21,649 State, county and municipals 163,702 76 3,252 160,526 Mortgage-backed securities 134,350 328 3,034 131,644 Corporate debt securities 87,352 66 1,093 86,325 $ 407,871 $ 470 $ 8,197 $ 400,144 |
Gain (Loss) on Securities | The following table presents gross unrealized losses and the related estimated fair value of investment securities available for sale, aggregated by investment category and the length of time the individual securities have been in a continuous unrealized loss position. December 31, 2019 Less than 12 months 12 months or more Total (in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Number of Securities U.S. government agency securities $ 1,035 $ 2 $ 11,091 $ 58 $ 12,126 $ 60 6 State, county and municipals 22,451 132 7,605 25 30,056 157 56 Mortgage-backed securities 49,626 245 47,271 452 96,897 697 150 Corporate debt securities — — — — — — — $ 73,112 $ 379 $ 65,967 $ 535 $ 139,079 $ 914 212 December 31, 2018 Less than 12 months 12 months or more Total (in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Number of Securities U.S. government agency securities $ — $ — $ 21,649 $ 818 $ 21,649 $ 818 3 State, county and municipals 16,136 98 130,975 3,154 147,111 3,252 440 Mortgage-backed securities 20,568 132 89,189 2,902 109,757 3,034 204 Corporate debt securities 51,592 677 9,757 416 61,349 1,093 33 $ 88,296 $ 907 $ 251,570 $ 7,290 $ 339,866 $ 8,197 680 |
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. See Note 17 for additional information on the Company’s fair value measurements. December 31, 2019 (in thousands) Amortized Cost Fair Value Due in less than one year $ 18,662 $ 18,679 Due in one year through five years 187,010 190,149 Due after five years through ten years 35,440 35,829 Due after ten years 8,914 9,627 250,026 254,284 Mortgage-backed securities 193,223 195,018 Securities AFS $ 443,249 $ 449,302 |
Schedule of Proceeds from sales of securities AFS | Proceeds from sales of securities AFS is summarized as follows. Years Ended December 31, (in thousands) 2019 2018 2017 Gross gains $ 152 $ — $ 1,227 Gross losses (174 ) (212 ) (7 ) Gains (losses) on sales of securities AFS, net $ (22 ) $ (212 ) $ 1,220 Proceeds from sales of securities AFS $ 23,405 $ 5,280 $ 10,798 |
LOANS, ALLOWANCE FOR LOAN LOS_2
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of loan composition and further breakdown summarized by originated and acquired | The loan composition is summarized as follows. December 31, 2019 December 31, 2018 (in thousands) Amount % of Total Amount % of Total Commercial & industrial $ 806,189 31 % $ 684,920 32 % Owner-occupied commercial real estate (“CRE”) 496,372 19 441,353 20 Agricultural (“AG”) production 35,982 2 35,625 2 AG real estate 59,468 2 53,444 2 CRE investment 443,218 17 343,652 16 Construction & land development 92,970 4 80,599 4 Residential construction 54,403 2 30,926 1 Residential first mortgage 432,167 17 357,841 17 Residential junior mortgage 122,771 5 111,328 5 Retail & other 30,211 1 26,493 1 Loans 2,573,751 100 % 2,166,181 100 % Less ALLL 13,972 13,153 Loans, net $ 2,559,779 $ 2,153,028 ALLL to loans 0.54 % 0.61 % As a further breakdown, loans are summarized by originated and acquired as follows. December 31, 2019 December 31, 2018 (in thousands) Originated Amount % of Total Acquired Amount % of Total Originated Amount % of Total Acquired Amount % of Total Commercial & industrial $ 641,341 39 % $ 164,848 18 % $ 568,100 38 % $ 116,820 17 % Owner-occupied CRE 329,138 20 167,234 18 283,531 19 157,822 23 AG production 11,824 1 24,158 3 11,113 1 24,512 4 AG real estate 38,983 2 20,485 2 31,374 2 22,070 3 CRE investment 183,746 11 259,472 28 171,087 12 172,565 25 Construction & land development 56,086 3 36,884 4 66,478 4 14,121 2 Residential construction 43,460 3 10,943 1 30,926 2 — — Residential first mortgage 232,580 14 199,587 22 220,368 15 137,473 20 Residential junior mortgage 90,284 5 32,487 4 78,379 5 32,949 5 Retail & other 28,373 2 1,838 — 23,809 2 2,684 1 Loans 1,655,815 100 % 917,936 100 % 1,485,165 100 % 681,016 100 % Less ALLL 12,116 1,856 11,448 1,705 Loans, net $ 1,643,699 $ 916,080 $ 1,473,717 $ 679,311 ALLL to loans 0.73 % 0.20 % 0.77 % 0.25 % |
Schedule Of Roll Forward Of Allowance For Loan Losses Table | A roll forward of the allowance for loan losses is summarized as follows. Years Ended December 31, (in thousands) 2019 2018 2017 Beginning balance $ 13,153 $ 12,653 $ 11,820 Provision for loan losses 1,200 1,600 2,325 Charge-offs (927 ) (1,213 ) (1,604 ) Recoveries 546 113 112 Net charge-offs (381 ) (1,100 ) (1,492 ) Ending balance $ 13,972 $ 13,153 $ 12,653 |
Schedule of changes in ALLL by portfolio segment and further breakdown summarized by originated and acquired | 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 year ended December 31, 2019 . TOTAL – Year Ended December 31, 2019 (in thousands) Commercial & industrial Owner- occupied CRE AG production AG real estate CRE investment Construction & land development Residential construction Residential first mortgage Residential junior mortgage Retail & other Total ALLL: Beginning balance $ 5,271 $ 2,847 $ 121 $ 301 $ 1,470 $ 510 $ 211 $ 1,646 $ 472 $ 304 $ 13,153 Provision (61 ) 254 89 68 130 (96 ) 383 9 86 338 1,200 Charge-offs (159 ) (93 ) — — — — (226 ) (22 ) (80 ) (347 ) (927 ) Recoveries 420 2 — — — — — 36 39 49 546 Net charge-offs 261 (91 ) — — — — (226 ) 14 (41 ) (298 ) (381 ) Ending balance $ 5,471 $ 3,010 $ 210 $ 369 $ 1,600 $ 414 $ 368 $ 1,669 $ 517 $ 344 $ 13,972 As % of ALLL 39 % 22 % 1 % 3 % 11 % 3 % 3 % 12 % 4 % 2 % 100 % ALLL: Individually evaluated $ 625 $ — $ 116 $ — $ — $ — $ — $ — $ — $ — $ 741 Collectively evaluated 4,846 3,010 94 369 1,600 414 368 1,669 517 344 13,231 Ending balance $ 5,471 $ 3,010 $ 210 $ 369 $ 1,600 $ 414 $ 368 $ 1,669 $ 517 $ 344 $ 13,972 Loans: Individually evaluated $ 5,932 $ 3,430 $ 1,061 $ 1,073 $ 2,426 $ 382 $ — $ 2,357 $ 218 $ 12 $ 16,891 Collectively evaluated 800,257 492,942 34,921 58,395 440,792 92,588 54,403 429,810 122,553 30,199 2,556,860 Total loans $ 806,189 $ 496,372 $ 35,982 $ 59,468 $ 443,218 $ 92,970 $ 54,403 $ 432,167 $ 122,771 $ 30,211 $ 2,573,751 Less ALLL 5,471 3,010 210 369 1,600 414 368 1,669 517 344 13,972 Net loans $ 800,718 $ 493,362 $ 35,772 $ 59,099 $ 441,618 $ 92,556 $ 54,035 $ 430,498 $ 122,254 $ 29,867 $ 2,559,779 As a further breakdown, the ALLL is summarized by originated and acquired as follows. Originated – Year Ended December 31, 2019 (in thousands) Commercial & industrial Owner- occupied CRE AG production AG real estate CRE investment Construction & land development Residential construction Residential first mortgage Residential junior mortgage Retail & other Total ALLL: Beginning balance $ 4,683 $ 2,439 $ 110 $ 255 $ 1,230 $ 431 $ 211 $ 1,400 $ 408 $ 281 $ 11,448 Provision (207 ) 212 85 57 124 (81 ) 340 5 25 335 895 Charge-offs (59 ) (93 ) — — — — (226 ) (22 ) (20 ) (347 ) (767 ) Recoveries 420 2 — — — — — 36 33 49 540 Net charge-offs 361 (91 ) — — — — (226 ) 14 13 (298 ) (227 ) Ending balance $ 4,837 $ 2,560 $ 195 $ 312 $ 1,354 $ 350 $ 325 $ 1,419 $ 446 $ 318 $ 12,116 As % of ALLL 40 % 21 % 2 % 2 % 11 % 3 % 3 % 12 % 4 % 2 % 100 % ALLL: Individually evaluated $ 625 $ — $ 116 $ — $ — $ — $ — $ — $ — $ — $ 741 Collectively evaluated 4,212 2,560 79 312 1,354 350 325 1,419 446 318 11,375 Ending balance $ 4,837 $ 2,560 $ 195 $ 312 $ 1,354 $ 350 $ 325 $ 1,419 $ 446 $ 318 $ 12,116 Loans: Individually evaluated $ 1,993 $ 1,845 $ 1,008 $ 862 $ — $ — $ — $ — $ — $ — $ 5,708 Collectively evaluated 639,348 327,293 10,816 38,121 183,746 56,086 43,460 232,580 90,284 28,373 1,650,107 Total loans $ 641,341 $ 329,138 $ 11,824 $ 38,983 $ 183,746 $ 56,086 $ 43,460 $ 232,580 $ 90,284 $ 28,373 $ 1,655,815 Less ALLL 4,837 2,560 195 312 1,354 350 325 1,419 446 318 12,116 Net loans $ 636,504 $ 326,578 $ 11,629 $ 38,671 $ 182,392 $ 55,736 $ 43,135 $ 231,161 $ 89,838 $ 28,055 $ 1,643,699 Acquired – Year Ended December 31, 2019 (in thousands) Commercial & industrial Owner- occupied CRE AG production AG real estate CRE investment Construction & land development Residential construction Residential first mortgage Residential junior mortgage Retail & other Total ALLL: Beginning balance $ 588 $ 408 $ 11 $ 46 $ 240 $ 79 $ — $ 246 $ 64 $ 23 $ 1,705 Provision 146 42 4 11 6 (15 ) 43 4 61 3 305 Charge-offs (100 ) — — — — — — — (60 ) — (160 ) Recoveries — — — — — — — — 6 — 6 Net charge-offs (100 ) — — — — — — — (54 ) — (154 ) Ending balance $ 634 $ 450 $ 15 $ 57 $ 246 $ 64 $ 43 $ 250 $ 71 $ 26 $ 1,856 As % of ALLL 34 % 24 % 1 % 3 % 13 % 4 % 2 % 14 % 4 % 1 % 100 % ALLL: Individually evaluated $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated 634 450 15 57 246 64 43 250 71 26 1,856 Ending balance $ 634 $ 450 $ 15 $ 57 $ 246 $ 64 $ 43 $ 250 $ 71 $ 26 $ 1,856 Loans: Individually evaluated $ 3,939 $ 1,585 $ 53 $ 211 $ 2,426 $ 382 $ — $ 2,357 $ 218 $ 12 $ 11,183 Collectively evaluated 160,909 165,649 24,105 20,274 257,046 36,502 10,943 197,230 32,269 1,826 906,753 Total loans $ 164,848 $ 167,234 $ 24,158 $ 20,485 $ 259,472 $ 36,884 $ 10,943 $ 199,587 $ 32,487 $ 1,838 $ 917,936 Less ALLL 634 450 15 57 246 64 43 250 71 26 1,856 Net loans $ 164,214 $ 166,784 $ 24,143 $ 20,428 $ 259,226 $ 36,820 $ 10,900 $ 199,337 $ 32,416 $ 1,812 $ 916,080 For comparison, 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 year ended December 31, 2018 . TOTAL – Year Ended December 31, 2018 (in thousands) Commercial & industrial Owner- occupied CRE AG production AG real estate CRE investment Construction & land development Residential construction Residential first mortgage Residential junior mortgage Retail & other Total ALLL: Beginning balance $ 4,934 $ 2,607 $ 129 $ 296 $ 1,388 $ 726 $ 251 $ 1,609 $ 488 $ 225 $ 12,653 Provision 1,107 300 (8 ) 5 119 (216 ) (40 ) 117 (51 ) 267 1,600 Charge-offs (813 ) (74 ) — — (37 ) — — (85 ) — (204 ) (1,213 ) Recoveries 43 14 — — — — — 5 35 16 113 Net charge-offs (770 ) (60 ) — — (37 ) — — (80 ) 35 (188 ) (1,100 ) Ending balance $ 5,271 $ 2,847 $ 121 $ 301 $ 1,470 $ 510 $ 211 $ 1,646 $ 472 $ 304 $ 13,153 As % of ALLL 40 % 22 % 1 % 2 % 11 % 4 % 2 % 12 % 4 % 2 % 100 % ALLL: Individually evaluated $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated 5,271 2,847 121 301 1,470 510 211 1,646 472 304 13,153 Ending balance $ 5,271 $ 2,847 $ 121 $ 301 $ 1,470 $ 510 $ 211 $ 1,646 $ 472 $ 304 $ 13,153 Loans: Individually evaluated $ 2,927 $ 1,506 $ — $ 222 $ 1,686 $ 603 $ — $ 2,750 $ 233 $ 12 $ 9,939 Collectively evaluated 681,993 439,847 35,625 53,222 341,966 79,996 30,926 355,091 111,095 26,481 2,156,242 Total loans $ 684,920 $ 441,353 $ 35,625 $ 53,444 $ 343,652 $ 80,599 $ 30,926 $ 357,841 $ 111,328 $ 26,493 $ 2,166,181 Less ALLL 5,271 2,847 121 301 1,470 510 211 1,646 472 304 13,153 Net loans $ 679,649 $ 438,506 $ 35,504 $ 53,143 $ 342,182 $ 80,089 $ 30,715 $ 356,195 $ 110,856 $ 26,189 $ 2,153,028 As a further breakdown, the December 31, 2018 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 (771 ) (61 ) — — (37 ) — — (84 ) 30 (185 ) (1,108 ) Ending balance $ 4,683 $ 2,439 $ 110 $ 255 $ 1,230 $ 431 $ 211 $ 1,400 $ 408 $ 281 $ 11,448 As % of ALLL 41 % 21 % 1 % 2 % 11 % 4 % 2 % 12 % 4 % 2 % 100 % ALLL: Individually evaluated $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated 4,683 2,439 110 255 1,230 431 211 1,400 408 281 11,448 Ending balance $ 4,683 $ 2,439 $ 110 $ 255 $ 1,230 $ 431 $ 211 $ 1,400 $ 408 $ 281 $ 11,448 Loans: Individually evaluated $ 227 $ 321 $ — $ — $ — $ — $ — $ — $ — $ — $ 548 Collectively evaluated 567,873 283,210 11,113 31,374 171,087 66,478 30,926 220,368 78,379 23,809 1,484,617 Total loans $ 568,100 $ 283,531 $ 11,113 $ 31,374 $ 171,087 $ 66,478 $ 30,926 $ 220,368 $ 78,379 $ 23,809 $ 1,485,165 Less ALLL 4,683 2,439 110 255 1,230 431 211 1,400 408 281 11,448 Net loans $ 563,417 $ 281,092 $ 11,003 $ 31,119 $ 169,857 $ 66,047 $ 30,715 $ 218,968 $ 77,971 $ 23,528 $ 1,473,717 Acquired – Year Ended December 31, 2018 (in thousands) Commercial & industrial Owner- occupied CRE AG production AG real estate CRE investment Construction & land development Residential construction Residential first mortgage Residential junior mortgage Retail & other Total ALLL: Beginning balance $ 742 $ 492 $ 17 $ 61 $ 234 $ 98 $ 51 $ 312 $ 79 $ 25 $ 2,111 Provision (155 ) (85 ) (6 ) (15 ) 6 (19 ) (51 ) (70 ) (20 ) 1 (414 ) Charge-offs — (10 ) — — — — — — — (3 ) (13 ) Recoveries 1 11 — — — — — 4 5 — 21 Net charge-offs 1 1 — — — — — 4 5 (3 ) 8 Ending balance $ 588 $ 408 $ 11 $ 46 $ 240 $ 79 $ — $ 246 $ 64 $ 23 $ 1,705 As % of ALLL 34 % 24 % 1 % 3 % 14 % 5 % — % 14 % 4 % 1 % 100 % ALLL: Individually evaluated $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated 588 408 11 46 240 79 — 246 64 23 1,705 Ending balance $ 588 $ 408 $ 11 $ 46 $ 240 $ 79 $ — $ 246 $ 64 $ 23 $ 1,705 Loans: Individually evaluated $ 2,700 $ 1,185 $ — $ 222 $ 1,686 $ 603 $ — $ 2,750 $ 233 $ 12 $ 9,391 Collectively evaluated 114,120 156,637 24,512 21,848 170,879 13,518 — 134,723 32,716 2,672 671,625 Total loans $ 116,820 $ 157,822 $ 24,512 $ 22,070 $ 172,565 $ 14,121 $ — $ 137,473 $ 32,949 $ 2,684 $ 681,016 Less ALLL 588 408 11 46 240 79 — 246 64 23 1,705 Net loans $ 116,232 $ 157,414 $ 24,501 $ 22,024 $ 172,325 $ 14,042 $ — $ 137,227 $ 32,885 $ 2,661 $ 679,311 |
Schedule of nonaccrual loans by portfolio segment and further breakdown summarized by originated and acquired | The following tables present nonaccrual loans by portfolio segment in total and then as a further breakdown by originated or acquired. Total Nonaccrual Loans (in thousands) December 31, 2019 % to Total December 31, 2018 % to Total Commercial & industrial $ 6,249 44 % $ 2,816 52 % Owner-occupied CRE 3,311 23 673 12 AG production 1,062 8 — — AG real estate 836 6 164 3 CRE investment 1,073 8 210 4 Construction & land development 20 — 80 1 Residential construction — — 1 — Residential first mortgage 1,090 8 1,265 23 Residential junior mortgage 480 3 262 5 Retail & other 1 — — — Nonaccrual loans $ 14,122 100 % $ 5,471 100 % Percent of total loans 0.5 % 0.2 % Originated and Acquired Nonaccrual Loans December 31, 2019 December 31, 2018 (in thousands) Originated Amount % of Total Acquired Amount % of Total Originated Amount % of Total Acquired Amount % of Total Commercial & industrial $ 2,283 36 % $ 3,966 51 % $ 352 25 % $ 2,464 61 % Owner-occupied CRE 1,846 29 1,465 19 362 26 311 8 AG production 1,009 16 53 1 — — — — AG real estate 625 10 211 3 — — 164 4 CRE investment — — 1,073 14 — — 210 5 Construction & land development — — 20 — — — 80 2 Residential construction — — — — 1 — — — Residential first mortgage 434 7 656 8 629 45 636 15 Residential junior mortgage 126 2 354 4 65 4 197 5 Retail & other 1 — — — — — — — Nonaccrual loans $ 6,324 100 % $ 7,798 100 % $ 1,409 100 % $ 4,062 100 % Percent of nonaccrual loans 45 % 55 % 26 % 74 % |
Schedule of past due loans by portfolio segment and further breakdown summarized by originated and acquired | The following tables present past due loans by portfolio segment. December 31, 2019 (in thousands) 30-89 Days Past Due (accruing) 90 Days & Over or nonaccrual Current Total Commercial & industrial $ 1,729 $ 6,249 $ 798,211 $ 806,189 Owner-occupied CRE 112 3,311 492,949 496,372 AG production — 1,062 34,920 35,982 AG real estate — 836 58,632 59,468 CRE investment — 1,073 442,145 443,218 Construction & land development 2,063 20 90,887 92,970 Residential construction 302 — 54,101 54,403 Residential first mortgage 2,736 1,090 428,341 432,167 Residential junior mortgage 217 480 122,074 122,771 Retail & other 110 1 30,100 30,211 Total loans $ 7,269 $ 14,122 $ 2,552,360 $ 2,573,751 Percent of total loans 0.3 % 0.5 % 99.2 % 100.0 % December 31, 2018 (in thousands) 30-89 Days Past Due (accruing) 90 Days & Over or nonaccrual Current Total Commercial & industrial $ — $ 2,816 $ 682,104 $ 684,920 Owner-occupied CRE 557 673 440,123 441,353 AG production 19 — 35,606 35,625 AG real estate 35 164 53,245 53,444 CRE investment 180 210 343,262 343,652 Construction & land development — 80 80,519 80,599 Residential construction — 1 30,925 30,926 Residential first mortgage 758 1,265 355,818 357,841 Residential junior mortgage 12 262 111,054 111,328 Retail & other 10 — 26,483 26,493 Total loans $ 1,571 $ 5,471 $ 2,159,139 $ 2,166,181 Percent of total loans 0.1 % 0.2 % 99.7 % 100.0 % |
Schedule of total loans by risk categories | The following tables present total loans by risk categories. December 31, 2019 (in thousands) Grades 1-4 Grade 5 Grade 6 Grade 7 Grades 8-9 Total Commercial & industrial $ 765,073 $ 20,199 $ 7,663 $ 13,254 $ — $ 806,189 Owner-occupied CRE 464,661 20,855 953 9,903 — 496,372 AG production 27,521 3,174 1,229 4,058 — 35,982 AG real estate 49,561 3,611 2,046 4,250 — 59,468 CRE investment 430,794 8,085 2,578 1,761 — 443,218 Construction & land development 90,523 2,213 15 219 — 92,970 Residential construction 53,286 1,117 — — — 54,403 Residential first mortgage 424,044 4,677 668 2,778 — 432,167 Residential junior mortgage 122,249 35 — 487 — 122,771 Retail & other 30,210 — — 1 — 30,211 Total loans $ 2,457,922 $ 63,966 $ 15,152 $ 36,711 $ — $ 2,573,751 Percent of total loans 95.5 % 2.5 % 0.6 % 1.4 % — % 100.0 % December 31, 2018 (in thousands) Grades 1-4 Grade 5 Grade 6 Grade 7 Grades 8-9 Total Commercial & industrial $ 649,475 $ 16,145 $ 6,178 $ 13,122 $ — $ 684,920 Owner-occupied CRE 405,198 22,776 6,569 6,810 — 441,353 AG production 29,363 3,302 2,351 609 — 35,625 AG real estate 46,248 3,246 2,983 967 — 53,444 CRE investment 334,080 6,792 — 2,780 — 343,652 Construction & land development 75,365 5,138 16 80 — 80,599 Residential construction 30,926 — — — — 30,926 Residential first mortgage 353,239 1,406 510 2,686 — 357,841 Residential junior mortgage 111,037 17 — 274 — 111,328 Retail & other 26,493 — — — — 26,493 Total loans $ 2,061,424 $ 58,822 $ 18,607 $ 27,328 $ — $ 2,166,181 Percent of total loans 95.1 % 2.7 % 0.9 % 1.3 % — % 100.0 % |
Schedule of impaired loans and further breakdown summarized by originated and acquired | The following tables present impaired loans. December 31, 2019 (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Commercial & industrial $ 5,932 $ 7,950 $ 625 $ 5,405 $ 1,170 Owner-occupied CRE 3,430 4,016 — 3,677 256 AG production 1,061 1,090 116 1,221 28 AG real estate 1,073 1,082 — 1,090 9 CRE investment 2,426 2,790 — 2,497 364 Construction & land development 382 382 — 460 — Residential construction — — — — — Residential first mortgage 2,357 2,629 — 2,412 178 Residential junior mortgage 218 349 — 224 58 Retail & other 12 12 — 12 — Total $ 16,891 $ 20,300 $ 741 $ 16,998 $ 2,063 Originated impaired loans $ 5,708 $ 5,938 $ 741 $ 5,978 $ 230 Acquired impaired loans 11,183 14,362 — 11,020 1,833 Total $ 16,891 $ 20,300 $ 741 $ 16,998 $ 2,063 December 31, 2018 (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Commercial & industrial $ 2,927 $ 6,736 $ — $ 4,041 $ 660 Owner-occupied CRE 1,506 1,833 — 1,659 137 AG production — — — — — AG real estate 222 281 — 238 26 CRE investment 1,686 2,484 — 1,606 163 Construction & land development 603 1,506 — 603 21 Residential construction — — — — — Residential first mortgage 2,750 2,907 — 2,478 176 Residential junior mortgage 233 262 — 62 15 Retail & other 12 12 — 12 1 Total $ 9,939 $ 16,021 $ — $ 10,699 $ 1,199 Originated impaired loans $ 548 $ 548 $ — $ 899 $ 154 Acquired impaired loans 9,391 15,473 — 9,800 1,045 Total $ 9,939 $ 16,021 $ — $ 10,699 $ 1,199 |
Schedule of non accretable discount | Nonaccretable discount on PCI loans: Years Ended December 31, (in thousands) 2019 2018 Balance at beginning of period $ 6,408 $ 9,471 Acquired balance, net 911 — Accretion to loan interest income (4,713 ) (1,976 ) Transferred to accretable — (990 ) Disposals of loans (679 ) (97 ) Balance at end of period $ 1,927 $ 6,408 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and equipment, less accumulated depreciation and amortization | Premises and equipment, less accumulated depreciation and amortization, is summarized as follows. (in thousands) December 31, 2019 December 31, 2018 Land $ 7,418 $ 6,220 Land improvements 3,865 3,842 Building and improvements 50,818 42,238 Leasehold improvements 4,580 4,092 Furniture and equipment 20,262 18,590 86,943 74,982 Less accumulated depreciation and amortization 30,474 26,809 Premises and equipment, net $ 56,469 $ 48,173 |
Schedule of operating lease | A summary of net lease cost and selected other information related to operating leases was as follows. Year Ended ($ in thousands) December 31, 2019 Net lease cost: Operating lease cost $ 970 Variable lease cost 233 Net lease cost $ 1,203 Selected other operating lease information: Weighted average remaining lease term (years) 4.3 Weighted average discount rate 2.5 % |
Schedule of minimum annual rentals under non-cancelable lease agreements | The following table summarizes the maturity of remaining lease liabilities. Years Ending December 31, (in thousands) 2020 $ 1,088 2021 962 2022 851 2023 607 2024 499 Thereafter 16 Total future minimum lease payments 4,023 Less: amount representing interest (100 ) Present value of net future minimum lease payments $ 3,923 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLES AND MORTGAGE SERVICING RIGHTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill and other intangibles included in other assets | A summary of goodwill and other intangibles was as follows. (in thousands) December 31, 2019 December 31, 2018 Goodwill $ 151,198 $ 107,366 Core deposit intangibles 10,897 12,562 Customer list intangibles 3,872 4,379 Other intangibles 14,769 16,941 Goodwill and other intangibles, net $ 165,967 $ 124,307 |
Schedule of goodwill | See Note 1 for the Company’s accounting policy for goodwill and see Note 2 for additional information on the Company’s acquisitions. (in thousands) December 31, 2019 December 31, 2018 Goodwill: Goodwill at beginning of year $ 107,366 $ 107,366 Acquisition 44,594 — Impairment (762 ) — Goodwill at end of year $ 151,198 $ 107,366 |
Schedule of intangible assets | (in thousands) December 31, 2019 December 31, 2018 Core deposit intangibles: Gross carrying amount $ 30,715 $ 29,015 Accumulated amortization (19,818 ) (16,453 ) Net book value $ 10,897 $ 12,562 Additions during the period $ 1,700 $ — Amortization during the period $ 3,365 $ 3,915 Customer list intangibles: Gross carrying amount $ 5,523 5,523 Accumulated amortization (1,651 ) (1,144 ) Net book value $ 3,872 $ 4,379 Additions during the period $ — $ 290 Amortization during the period $ 507 $ 474 |
Schedule of mortgage servicing rights | A summary of the changes in the MSR asset was as follows. (in thousands) December 31, 2019 December 31, 2018 MSR asset: MSR asset at beginning of year $ 3,749 $ 3,187 Capitalized MSR 2,876 1,203 MSR asset acquired 160 — Amortization during the period (866 ) (641 ) MSR asset at end of year $ 5,919 $ 3,749 Fair value of MSR asset at end of period $ 8,420 $ 6,347 Residential mortgage loans serviced for others $ 847,756 $ 603,446 Net book value of MSR asset to loans serviced for others 0.70 % 0.62 % |
Schedule of estimated future amortization expense for amortizing intangible assets | (in thousands) Core deposit intangibles Customer list intangibles MSR asset Years Ending December 31, 2020 $ 2,993 $ 507 $ 1,048 2021 2,453 507 865 2022 1,987 507 865 2023 1,490 483 835 2024 1,010 449 503 Thereafter 964 1,419 1,803 Total $ 10,897 $ 3,872 $ 5,919 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Schedule of maturities of time deposits | At December 31, 2019 , the scheduled maturities of time deposits were as follows. Years Ending December 31, (in thousands) 2020 $ 317,693 2021 114,728 2022 50,949 2023 45,040 2024 19,773 Thereafter 2,374 Total time deposits $ 550,557 |
SHORT AND LONG-TERM BORROWINGS
SHORT AND LONG-TERM BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt instruments | The components of long-term borrowings (borrowing with an original contractual maturity greater than one year) were as follows. (in thousands) December 31, 2019 December 31, 2018 FHLB advances $ 25,061 $ 35,252 Junior subordinated debentures 30,575 30,096 Subordinated notes 11,993 11,957 Total long-term borrowings $ 67,629 $ 77,305 |
Schedule of maturity of notes payable | The following table shows the maturity schedule of the FHLB advances as of December 31, 2019 . Maturing in: (in thousands) 2020 $ 10,061 2021 10,000 2022 — 2023 — 2024 — 2025 5,000 $ 25,061 |
Schedule of junior subordinated 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. Junior Subordinated Debentures (in thousands) Maturity Date Par 12/31/2019 Unamortized Discount 12/31/2019 Carrying Value 12/31/2018 Carrying Value 2004 Nicolet Bankshares Statutory Trust (1) 7/15/2034 $ 6,186 $ — $ 6,186 $ 6,186 2005 Mid-Wisconsin Financial Services, Inc. (2) 12/15/2035 10,310 (3,172 ) 7,138 6,939 2006 Baylake Corp. (3) 9/30/2036 16,598 (3,883 ) 12,715 12,478 2004 First Menasha Bancshares, Inc. (4) 3/17/2034 5,155 (619 ) 4,536 4,493 Total $ 38,249 $ (7,674 ) $ 30,575 $ 30,096 (1) The interest rate is 8.00% fixed. (2) The debentures, assumed in April 2013 as the result of an acquisition, have a floating rate of the three-month LIBOR plus 1.43% , adjusted quarterly. The interest rates were 3.32% and 4.22% as of December 31, 2019 and 2018 , respectively. (3) The debentures, assumed in April 2016 as a result of an acquisition, have a floating rate of the three-month LIBOR plus 1.35% , adjusted quarterly. The interest rates were 3.31% and 4.15% as of December 31, 2019 and 2018 , respectively. (4) The debentures, assumed in April 2017 as the result of an acquisition, have a floating rate of the three-month LIBOR plus 2.79% , adjusted quarterly. The interest rate was 4.69% and 5.58% as of December 31, 2019 and 2018 , respectively. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of weighted average assumptions for valuing stock option grants | The weighted average assumptions used in the model for valuing stock option grants were as follows. 2019 2018 2017 Dividend yield — % — % — % Expected volatility 25 % 25 % 25 % Risk-free interest rate 1.75 % 2.61 % 2.14 % Expected average life 7 years 7 years 7 years Weighted average per share fair value of options $ 21.30 $ 17.36 $ 15.80 |
Schedule of stock incentive plans for options | 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, 2016 922,026 $ 24.39 Granted 949,500 49.93 Exercise of stock options * (209,371 ) 18.15 Forfeited (18,900 ) 35.36 Outstanding – December 31, 2017 1,643,255 $ 39.82 8.1 $ 24,525 Granted 15,500 52.76 Exercise of stock options * (70,556 ) 21.52 Forfeited (6,500 ) 39.43 Outstanding – December 31, 2018 1,581,699 $ 40.77 7.4 $ 13,825 Granted 203,000 69.69 Exercise of stock options * (337,428 ) 24.15 Forfeited (3,538 ) 27.43 Outstanding – December 31, 2019 1,443,733 $ 48.75 7.4 $ 36,428 Exercisable – December 31, 2019 561,633 $ 42.91 6.7 $ 17,384 *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, and accordingly 142,752 shares, 6,411 shares, and 85,422 shares were surrendered during 2019 , 2018 , and 2017 , respectively. |
Schedule of tax withholding requirements options of outstanding | The following options were outstanding at December 31, 2019 . Number of Shares Weighted Average Exercise Price Weighted Average Remaining Life (Years) Outstanding Exercisable Outstanding Exercisable Outstanding Exercisable $13.73 – $30.00 130,436 94,936 $ 22.37 $ 21.85 4.2 4.1 $30.01 – $40.00 155,747 89,747 35.92 35.51 6.4 6.3 $40.01 – $50.00 804,050 319,850 48.86 48.86 7.4 7.4 $50.01 – $60.00 155,500 57,100 56.09 56.23 7.9 7.9 $60.01 – $70.50 198,000 — 70.01 — 9.9 0.0 1,443,733 561,633 $ 48.75 $ 42.91 7.4 6.7 |
Schedule of restricted stock | A summary of the Company’s restricted stock activity is summarized below. Restricted Stock Restricted Shares Outstanding Weighted Average Grant Date Fair Value Outstanding – December 31, 2016 42,949 $ 26.80 Granted 9,240 57.75 Vested * (20,514 ) 29.87 Forfeited (755 ) 16.50 Outstanding – December 31, 2017 30,920 $ 34.26 Granted 18,256 52.55 Vested * (19,661 ) 43.58 Forfeited (3 ) 16.50 Outstanding – December 31, 2018 29,512 $ 39.37 Granted 12,498 67.59 Vested * (19,081 ) 51.77 Forfeited (408 ) 16.50 Outstanding – December 31, 2019 22,521 $ 44.94 *The terms of the restricted stock agreements permit the surrender of shares to the Company upon vesting in order to satisfy applicable tax withholding at the minimum statutory withholding rate, and accordingly 4,688 shares, 3,948 shares, and 5,266 shares were surrendered during 2019 , 2018 , and 2017 , respectively. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of current and deferred amounts of income tax expense | The current and deferred amounts of income tax expense were as follows. Years Ended December 31, (in thousands) 2019 2018 2017 Current $ 15,353 $ 14,967 $ 10,952 Deferred 1,105 (1,521 ) 4,430 Adjustment to the net deferred tax asset for the Tax Cuts and Jobs Act — — 885 Income tax expense $ 16,458 $ 13,446 $ 16,267 |
Schedule of income tax reconciliation | The differences between the income tax expense recognized and the amount computed by applying the statutory federal income tax rate (21% for 2019 and 2018 and 35% for 2017) to the income before income taxes, less noncontrolling interest, for the years ended as indicated are included in the following table. Years Ended December 31, (in thousands) 2019 2018 2017 Tax on pretax income, less noncontrolling interest, at statutory rates $ 14,931 $ 11,441 $ 17,296 State income taxes, net of federal effect 3,672 3,308 2,242 Tax-exempt interest income (609 ) (574 ) (1,073 ) Non-deductible interest disallowance 29 30 28 Increase in cash surrender value life insurance (573 ) (508 ) (807 ) Non-deductible business entertainment 189 156 168 Stock-based employee compensation (2,347 ) (232 ) (62 ) Non-deductible compensation 3,122 — — Adjustment to the net deferred tax asset for the Tax Cuts and Jobs Act — — 885 Deduction attributable to share-based payments — — (1,854 ) Sale of UFS (2,176 ) — — Other, net 220 (175 ) (556 ) Income tax expense $ 16,458 $ 13,446 $ 16,267 |
Schedule of net deferred tax asset | The net deferred tax asset includes the following amounts of deferred tax assets and liabilities. (in thousands) December 31, 2019 December 31, 2018 Deferred tax assets: ALLL $ 4,985 $ 5,240 Net operating loss carryforwards 1,808 2,202 Credit carryforwards 43 43 Compensation 3,477 2,408 Other 2,830 2,549 Other real estate 201 103 Unrealized loss on securities AFS — 1,740 Total deferred tax assets 13,344 14,285 Deferred tax liabilities: Premises and equipment (1,390 ) (821 ) Prepaid expenses (778 ) (693 ) Investment securities (755 ) (1,723 ) Core deposit and other intangibles (2,836 ) (3,563 ) Purchase accounting adjustments to liabilities (2,375 ) (2,011 ) Other (1,391 ) (1,021 ) Unrealized gain on securities AFS (1,879 ) — Total deferred tax liabilities (11,404 ) (9,832 ) Net deferred tax assets $ 1,940 $ 4,453 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of summary of the contract or notional amount of exposure to off-balance-sheet risk | A summary of the contract or notional amount of the Company’s exposure to off-balance sheet risk was as follows. (in thousands) December 31, 2019 December 31, 2018 Commitments to extend credit $ 773,555 $ 721,098 Financial standby letters of credit 10,730 8,571 Performance standby letters of credit 8,469 7,094 |
ASSETS GAINS (LOSSES), NET (Tab
ASSETS GAINS (LOSSES), NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of components of the net gain on sale, disposal or write-down of assets | Components of the net gains (losses) on assets are as follows. Years Ended December 31, (in thousands) 2019 2018 2017 Gains (losses) on sales of securities AFS, net $ (22 ) $ (212 ) $ 1,220 Gains (losses) on equity securities, net 1,115 77 — Gains (losses) on sales of OREO, net (88 ) 1,032 258 Write-downs of OREO (300 ) (120 ) (127 ) Write-down of other investment (100 ) — — Gains (losses) on sales of other investments, net 7,442 187 — Gains (losses) on sales or dispositions of other assets, net (150 ) 205 678 Asset gains (losses), net $ 7,897 $ 1,169 $ 2,029 |
REGULATORY CAPITAL REQUIREMEN_2
REGULATORY CAPITAL REQUIREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Bank's actual regulatory capital amounts and ratios | The Company’s and the Bank’s actual regulatory capital amounts and ratios are presented in the following table. Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions (2) (in thousands) Amount Ratio (1) Amount Ratio (1) Amount Ratio (1) December 31, 2019 Company Total risk-based capital $ 404,573 13.4 % $ 241,333 8.0 % Tier 1 risk-based capital 378,608 12.6 181,000 6.0 Common equity Tier 1 capital 348,454 11.6 135,750 4.5 Leverage 378,608 11.9 127,036 4.0 Bank Total risk-based capital $ 323,432 10.8 % $ 240,551 8.0 % $ 300,688 10.0 % Tier 1 risk-based capital 309,460 10.3 180,413 6.0 240,551 8.0 Common equity Tier 1 capital 309,460 10.3 135,310 4.5 195,447 6.5 Leverage 309,460 9.8 126,660 4.0 158,325 5.0 December 31, 2018 Company Total risk-based capital $ 326,235 12.9 % $ 202,836 8.0 % Tier 1 risk-based capital 301,125 11.9 152,127 6.0 Common equity Tier 1 capital 271,435 10.7 114,095 4.5 Leverage 301,125 10.4 115,483 4.0 Bank Total risk-based capital $ 274,492 10.8 % $ 202,800 8.0 % $ 253,501 10.0 % Tier 1 risk-based capital 261,339 10.3 152,100 6.0 202,800 8.0 Common equity Tier 1 capital 261,339 10.3 114,075 4.5 164,775 6.5 Leverage 261,339 9.1 115,280 4.0 144,100 5.0 (1) The Total risk-based capital ratio is defined as Tier 1 capital plus tier 2 capital divided by total risk-weighted assets. The Tier 1 risk-based capital ratio is defined as Tier 1 capital divided by total risk-weighted assets. CET1 risk-based capital ratio is defined as Tier 1 capital, with deductions for goodwill and other intangible assets (other than mortgage servicing assets), net of associated deferred tax liabilities, and limitations on the inclusion of deferred tax assets, mortgage servicing assets and investments in other financial institutions, in each case as provided further in the rules, divided by total risk-weighted assets. The Leverage ratio is defined as Tier 1 capital divided by the most recent quarter’s average total assets as adjusted. (2) Prompt corrective action provisions are not applicable at the bank holding company level. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2019 U.S. government agency securities $ 16,460 $ — $ 16,460 $ — State, county and municipals 156,393 — 156,393 — Mortgage-backed securities 195,018 — 195,018 — Corporate debt securities 81,431 — 78,301 3,130 Securities AFS $ 449,302 $ — $ 446,172 $ 3,130 Other investments (equity securities) $ 3,375 $ 3,375 $ — $ — December 31, 2018 U.S. government agency securities $ 21,649 $ — $ 21,649 $ — State, county and municipals 160,526 — 160,460 66 Mortgage-backed securities 131,644 — 131,644 — Corporate debt securities 86,325 — 77,901 8,424 Securities AFS $ 400,144 $ — $ 391,654 $ 8,490 Other investments (equity securities) $ 2,650 $ 2,650 $ — $ — |
Schedule of changes in Level 3 assets measured at fair value on a recurring basis | The following table presents the changes in Level 3 securities AFS measured at fair value on a recurring basis. (in thousands) Years Ended Level 3 Fair Value Measurements: December 31, 2019 December 31, 2018 Balance at beginning of year $ 8,490 $ 9,151 Acquired balances 300 — Paydowns/Sales/Settlements (5,660 ) (661 ) Balance at end of year $ 3,130 $ 8,490 |
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 the 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 December 31, 2019 Impaired loans $ 16,150 $ — $ — $ 16,150 OREO 1,000 — — 1,000 MSR asset 8,420 — — 8,420 December 31, 2018 Impaired loans $ 9,939 $ — $ — $ 9,939 OREO 420 — — 420 MSR asset 6,347 — — 6,347 |
Schedule of estimated fair values of financial instruments | The carrying amounts and estimated fair values of the Company's financial instruments are shown below. December 31, 2019 (in thousands) Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 182,059 $ 182,059 $ 182,059 $ — $ — Certificates of deposit in other banks 19,305 19,310 — 19,310 — Securities AFS 449,302 449,302 — 446,172 3,130 Other investments 24,072 24,072 3,375 16,759 3,938 Loans held for sale 2,706 2,753 — 2,753 — Loans, net 2,559,779 2,593,110 — — 2,593,110 BOLI 78,140 78,140 78,140 — — MSR asset 5,919 8,420 — — 8,420 Financial liabilities: Deposits $ 2,954,453 $ 2,956,229 $ — $ — $ 2,956,229 Long-term borrowings 67,629 66,816 — 25,075 41,741 December 31, 2018 (in thousands) Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 249,526 $ 249,526 $ 249,526 $ — $ — Certificates of deposit in other banks 993 993 — 993 — Securities AFS 400,144 400,144 — 391,654 8,490 Other investments 17,997 17,997 2,650 13,189 2,158 Loans held for sale 1,639 1,662 — 1,662 — Loans, net 2,153,028 2,139,322 — — 2,139,322 BOLI 66,310 66,310 66,310 — — MSR asset 3,749 6,347 — — 6,347 Financial liabilities: Deposits $ 2,614,138 $ 2,614,995 $ — $ — $ 2,614,995 Long-term borrowings 77,305 75,923 — 34,907 41,016 |
PARENT COMPANY ONLY FINANCIAL_2
PARENT COMPANY ONLY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of parent company only condensed financial statements | Statements of Cash Flows Years Ended December 31, (in thousands) 2019 2018 2017 Cash Flows From Operating Activities: Net income attributable to Nicolet Bankshares, Inc. $ 54,641 $ 41,036 $ 33,150 Adjustments to reconcile net income to net cash provided by operating activities: Accretion of discounts 515 515 501 (Gain) loss on investments, net (1,015 ) (265 ) (1,411 ) Change in other assets and liabilities, net (421 ) (25 ) (1,384 ) Equity in undistributed (income) loss of subsidiaries, net of dividends (5,959 ) (2,847 ) (1,148 ) Net cash provided by operating activities 47,761 38,414 29,708 Cash Flows from Investing Activities: Proceeds from sale of investments — 708 317 Purchases of investments (2,484 ) (920 ) — Net cash paid in business combinations (412 ) — (19,287 ) Net cash used in investing activities (2,896 ) (212 ) (18,970 ) Cash Flows From Financing Activities: Purchase and retirement of common stock (28,460 ) (22,749 ) (15,007 ) Proceeds from issuance of common stock, net 8,742 1,800 4,030 Net cash used in financing activities (19,718 ) (20,949 ) (10,977 ) Net increase (decrease) in cash and due from subsidiary 25,147 17,253 (239 ) Beginning cash and due from subsidiary 45,279 28,026 28,265 Ending cash and due from subsidiary $ 70,426 $ 45,279 $ 28,026 Condensed Parent Company only financial statements of Nicolet Bankshares, Inc. follow. Balance Sheets December 31, (in thousands) 2019 2018 Assets Cash and due from subsidiary $ 70,426 $ 45,279 Investments 6,650 4,500 Investments in subsidiaries 487,644 384,839 Goodwill (3,266 ) (3,266 ) Other assets 396 53 Total assets $ 561,850 $ 431,405 Liabilities and Stockholders’ Equity Junior subordinated debentures $ 30,575 $ 30,096 Subordinated notes 11,993 11,957 Other liabilities 3,020 2,743 Stockholders’ equity 516,262 386,609 Total liabilities and stockholders’ equity $ 561,850 $ 431,405 Statements of Income Years Ended December 31, (in thousands) 2019 2018 2017 Interest income $ 55 $ 52 $ 46 Interest expense 2,936 2,844 2,415 Net interest expense (2,881 ) (2,792 ) (2,369 ) Dividend income from subsidiaries 50,363 40,775 32,000 Operating expense (321 ) (364 ) (369 ) Gain (loss) on investments, net 1,015 265 1,411 Income tax benefit 506 305 1,329 Earnings before equity in undistributed income (loss) of subsidiaries 48,682 38,189 32,002 Equity in undistributed income (loss) of subsidiaries 5,959 2,847 1,148 Net income attributable to Nicolet Bankshares, Inc. $ 54,641 $ 41,036 $ 33,150 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per common share | See Note 1 for the Company’s accounting policy on earnings per common share. Earnings per common share and related information are summarized as follows. Years Ended December 31, (in thousands, except per share data) 2019 2018 2017 Net income attributable to Nicolet Bankshares, Inc. $ 54,641 $ 41,036 $ 33,150 Weighted average common shares outstanding 9,562 9,640 9,440 Effect of dilutive common stock awards 338 316 518 Diluted weighted average common shares outstanding 9,900 9,956 9,958 Basic earnings per common share $ 5.71 $ 4.26 $ 3.51 Diluted earnings per common share $ 5.52 $ 4.12 $ 3.33 |
NATURE OF BUSINESS AND SIGNIF_4
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Narrative (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
May 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | |
Nature Of Business And Significant Accounting Policies [Line Items] | ||||||
Operating lease liability | $ 3,923,000 | |||||
Restricted cash | 6,000,000 | $ 6,300,000 | $ 5,400,000 | |||
Other investments | 24,072,000 | 17,997,000 | ||||
Material loans criteria for ALLL adequacy calculation | 250,000 | |||||
Goodwill, Impairment Loss | 762,000 | 0 | ||||
Restricted cash pledged as collateral | $ 1,300,000 | |||||
Core deposit intangibles | ||||||
Nature Of Business And Significant Accounting Policies [Line Items] | ||||||
Amortized period of core deposit intangible | 10 years | |||||
Customer list intangibles: | ||||||
Nature Of Business And Significant Accounting Policies [Line Items] | ||||||
Amortized period of core deposit intangible | 12 years | |||||
Accounting Standards Update 2016-02 | ||||||
Nature Of Business And Significant Accounting Policies [Line Items] | ||||||
Operating lease liability | $ 5,000,000 | |||||
Right-of-use asset | $ 5,000,000 | |||||
Minimum | Securities sold under agreements to repurchase | ||||||
Nature Of Business And Significant Accounting Policies [Line Items] | ||||||
Maturity period of repo agreements | 1 day | |||||
Maximum | Securities sold under agreements to repurchase | ||||||
Nature Of Business And Significant Accounting Policies [Line Items] | ||||||
Maturity period of repo agreements | 4 days | |||||
United Financial Services, Inc. | United Financial Services Llc | ||||||
Nature Of Business And Significant Accounting Policies [Line Items] | ||||||
Percentage of indirect interest | 49.80% | |||||
Percentage of Indirect Interest Sold | 80.00% | |||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 7,400,000 | |||||
Equity income recognized in business acquisition | $ 900,000 | 1,800,000 | 1,300,000 | |||
Payment made for acquisition | 3,200,000 | 2,800,000 | $ 2,600,000 | |||
Carrying value of bank investment | $ 2,800,000 | $ 11,500,000 |
NATURE OF BUSINESS AND SIGNIF_5
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Estimated useful lives of premises and equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | Building and improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of new premises and equipment | 25 years |
Minimum | Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of new premises and equipment | 5 years |
Minimum | Furniture and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of new premises and equipment | 3 years |
Maximum | Building and improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of new premises and equipment | 40 years |
Maximum | Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of new premises and equipment | 15 years |
Maximum | Furniture and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of new premises and equipment | 10 years |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Detail) $ / shares in Units, $ in Thousands | Nov. 08, 2019USD ($)$ / sharesshares | Apr. 28, 2017USD ($)Branch$ / sharesshares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) |
Business Acquisition [Line Items] | |||||
Amount of addition in goodwill | $ 44,594 | $ 0 | |||
Customer list intangibles | |||||
Business Acquisition [Line Items] | |||||
Intangible assets assumed | $ 290 | ||||
Merger Agreement | Choice Bancorp Inc. | |||||
Business Acquisition [Line Items] | |||||
Number of common stock issued for consideration | shares | 1,184,102 | ||||
Number of common stock for each outstanding share of common stock | 0.00497 | ||||
Common stock issued amount | $ 79,800 | ||||
Price per share for stock issued in consideration | $ / shares | $ 67.39 | ||||
Value of cash consideration | $ 1,700 | ||||
Direct stock issuance costs for the merger charged against additional paid in capital | 200 | ||||
Amount of addition in assets | 457,000 | ||||
Loans | 348,000 | ||||
Amount of addition in deposit | 289,000 | ||||
Amount of addition in goodwill | 45,000 | ||||
Merger Agreement | Choice Bancorp Inc. | Core deposit intangibles | |||||
Business Acquisition [Line Items] | |||||
Intangible assets assumed | $ 1,700 | ||||
Merger Agreement | First Menasha | |||||
Business Acquisition [Line Items] | |||||
Number of branches | Branch | 5 | ||||
Number of branches closed | Branch | 1 | ||||
Number of common stock issued for consideration | shares | 1,309,885 | ||||
Number of common stock for each outstanding share of common stock | 3.126 | ||||
Common stock issued amount | $ 62,200 | ||||
Price per share for stock issued in consideration | $ / shares | $ 47.52 | ||||
Number of trading days | 20 days | ||||
Value of cash consideration | $ 19,300 | ||||
Direct stock issuance costs for the merger charged against additional paid in capital | 200 | ||||
Amount of addition in assets | 480,000 | ||||
Loans | 351,000 | ||||
Amount of addition in deposit | 375,000 | ||||
Amount of addition in goodwill | 41,000 | ||||
Merger Agreement | First Menasha | Core deposit intangibles | |||||
Business Acquisition [Line Items] | |||||
Intangible assets assumed | $ 4,000 |
SECURITIES AVAILABLE FOR SALE -
SECURITIES AVAILABLE FOR SALE - Narrative (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Available-for-sale Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
AFS securities pledged as collateral | $ 166 | $ 157 |
SECURITIES AVAILABLE FOR SALE_2
SECURITIES AVAILABLE FOR SALE - Amortized costs and fair values of securities available for sale (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 443,249 | $ 407,871 |
Gross Unrealized Gains | 6,967 | 470 |
Gross Unrealized Losses | 914 | 8,197 |
Securities available for sale (“AFS”), at fair value | 449,302 | 400,144 |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 16,516 | 22,467 |
Gross Unrealized Gains | 4 | 0 |
Gross Unrealized Losses | 60 | 818 |
Securities available for sale (“AFS”), at fair value | 16,460 | 21,649 |
State, county and municipals | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 155,501 | 163,702 |
Gross Unrealized Gains | 1,049 | 76 |
Gross Unrealized Losses | 157 | 3,252 |
Securities available for sale (“AFS”), at fair value | 156,393 | 160,526 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 193,223 | 134,350 |
Gross Unrealized Gains | 2,492 | 328 |
Gross Unrealized Losses | 697 | 3,034 |
Securities available for sale (“AFS”), at fair value | 195,018 | 131,644 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 78,009 | 87,352 |
Gross Unrealized Gains | 3,422 | 66 |
Gross Unrealized Losses | 0 | 1,093 |
Securities available for sale (“AFS”), at fair value | $ 81,431 | $ 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) - Accounting Standards Update 2016-01 $ in Thousands | Dec. 31, 2019USD ($)Security | Dec. 31, 2018USD ($)Security |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | $ 73,112 | $ 88,296 |
Less than 12 months, Unrealized Losses | 379 | 907 |
12 months or more, Fair Value | 65,967 | 251,570 |
12 months or more, Unrealized Losses | 535 | 7,290 |
Total, Fair Value | 139,079 | 339,866 |
Total, Unrealized Losses | $ 914 | $ 8,197 |
Number of Securities | Security | 212 | 680 |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | $ 1,035 | $ 0 |
Less than 12 months, Unrealized Losses | 2 | 0 |
12 months or more, Fair Value | 11,091 | 21,649 |
12 months or more, Unrealized Losses | 58 | 818 |
Total, Fair Value | 12,126 | 21,649 |
Total, Unrealized Losses | $ 60 | $ 818 |
Number of Securities | Security | 6 | 3 |
US States and Political Subdivisions Debt Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | $ 22,451 | $ 16,136 |
Less than 12 months, Unrealized Losses | 132 | 98 |
12 months or more, Fair Value | 7,605 | 130,975 |
12 months or more, Unrealized Losses | 25 | 3,154 |
Total, Fair Value | 30,056 | 147,111 |
Total, Unrealized Losses | $ 157 | $ 3,252 |
Number of Securities | Security | 56 | 440 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | $ 49,626 | $ 20,568 |
Less than 12 months, Unrealized Losses | 245 | 132 |
12 months or more, Fair Value | 47,271 | 89,189 |
12 months or more, Unrealized Losses | 452 | 2,902 |
Total, Fair Value | 96,897 | 109,757 |
Total, Unrealized Losses | $ 697 | $ 3,034 |
Number of Securities | Security | 150 | 204 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | $ 0 | $ 51,592 |
Less than 12 months, Unrealized Losses | 0 | 677 |
12 months or more, Fair Value | 0 | 9,757 |
12 months or more, Unrealized Losses | 0 | 416 |
Total, Fair Value | 0 | 61,349 |
Total, Unrealized Losses | $ 0 | $ 1,093 |
Number of Securities | Security | 0 | 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) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost, Due in less than one year | $ 18,662 | |
Amortized Cost, Due in one year through five years | 187,010 | |
Amortized Cost, Due after five years through ten years | 35,440 | |
Amortized Cost, Due after ten years | 8,914 | |
Amortized Cost | 250,026 | |
Securities AFS, Amortized Cost | 443,249 | $ 407,871 |
Fair Value, Due in less than one year | 18,679 | |
Fair Value, Due in one year through five years | 190,149 | |
Fair Value, Due after five years through ten years | 35,829 | |
Fair Value, Due after ten years | 9,627 | |
Fair Value | 254,284 | |
Securities available for sale (“AFS”), at fair value | 449,302 | 400,144 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities AFS, Amortized Cost | 193,223 | 134,350 |
Securities available for sale (“AFS”), at fair value | $ 195,018 | $ 131,644 |
SECURITIES AVAILABLE FOR SALE_5
SECURITIES AVAILABLE FOR SALE - Proceeds from sales of securities AFS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Abstract] | |||
Gross gains | $ 152 | $ 0 | $ 1,227 |
Gross losses | (174) | (212) | (7) |
Gains (losses) on sales of securities AFS, net | (22) | (212) | 1,220 |
Proceeds from sales of securities AFS | $ 23,405 | $ 5,280 | $ 10,798 |
LOANS, ALLOWANCE FOR LOAN LOS_3
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY - Narrative (Detail) | 12 Months Ended | |
Dec. 31, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans classified as troubled debt restructuring, | Loan | 5 | 4 |
Postmodification balance | $ 1,100,000 | $ 600,000 |
Premodification balance | 1,400,000 | $ 2,700,000 |
Acquired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
PCI loans acquired fair value | 45,500,000 | |
Nonaccretable mark | 35,300,000 | |
Accretable mark | 0 | |
Loans receivables acquired at fair value in acquisition | $ 11,200,000 |
LOANS, ALLOWANCE FOR LOAN LOS_4
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY - Summary of loan composition (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 2,573,751 | $ 2,166,181 | ||
% of Total | 100.00% | 100.00% | ||
Less ALLL | $ 13,972 | $ 13,153 | $ 12,653 | $ 11,820 |
Loans, net | $ 2,559,779 | $ 2,153,028 | ||
ALLL to loans | 0.54% | 0.61% | ||
Originated | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 1,655,815 | $ 1,485,165 | ||
% of Total | 100.00% | 100.00% | ||
Less ALLL | $ 12,116 | $ 11,448 | 10,542 | |
Loans, net | $ 1,643,699 | $ 1,473,717 | ||
ALLL to loans | 0.73% | 0.77% | ||
Acquired | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 917,936 | $ 681,016 | ||
% of Total | 100.00% | 100.00% | ||
Less ALLL | $ 1,856 | $ 1,705 | 2,111 | |
Loans, net | $ 916,080 | $ 679,311 | ||
ALLL to loans | 0.20% | 0.25% | ||
Owner-occupied commercial real estate (“CRE”) | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 496,372 | |||
Owner-occupied commercial real estate (“CRE”) | Acquired | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 157,822 | |||
Retail & other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 30,211 | $ 26,493 | ||
% of Total | 1.00% | 1.00% | ||
Less ALLL | $ 344 | $ 304 | 225 | |
Loans, net | 29,867 | 26,189 | ||
Retail & other | Originated | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 28,373 | $ 23,809 | ||
% of Total | 2.00% | 2.00% | ||
Less ALLL | $ 318 | $ 281 | 200 | |
Loans, net | 28,055 | 23,528 | ||
Retail & other | Acquired | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 1,838 | $ 2,684 | ||
% of Total | 0.00% | 1.00% | ||
Less ALLL | $ 26 | $ 23 | 25 | |
Loans, net | 1,812 | 2,661 | ||
Commercial Portfolio Segment | Commercial & industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 806,189 | $ 684,920 | ||
% of Total | 31.00% | 32.00% | ||
Less ALLL | $ 5,471 | $ 5,271 | 4,934 | |
Loans, net | 800,718 | 679,649 | ||
Commercial Portfolio Segment | Commercial & industrial | Originated | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 641,341 | $ 568,100 | ||
% of Total | 39.00% | 38.00% | ||
Less ALLL | $ 4,837 | $ 4,683 | 4,192 | |
Loans, net | 636,504 | 563,417 | ||
Commercial Portfolio Segment | Commercial & industrial | Acquired | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 164,848 | $ 116,820 | ||
% of Total | 18.00% | 17.00% | ||
Less ALLL | $ 634 | $ 588 | 742 | |
Loans, net | 164,214 | 116,232 | ||
Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 496,372 | $ 441,353 | ||
% of Total | 19.00% | 20.00% | ||
Less ALLL | $ 3,010 | $ 2,847 | 2,607 | |
Loans, net | 493,362 | 438,506 | ||
Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | Originated | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 329,138 | $ 283,531 | ||
% of Total | 20.00% | 19.00% | ||
Less ALLL | $ 2,560 | $ 2,439 | 2,115 | |
Loans, net | 326,578 | 281,092 | ||
Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | Acquired | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 167,234 | $ 157,822 | ||
% of Total | 18.00% | 23.00% | ||
Less ALLL | $ 450 | $ 408 | 492 | |
Loans, net | 166,784 | 157,414 | ||
Commercial Portfolio Segment | Agricultural (“AG”) production | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 35,982 | $ 35,625 | ||
% of Total | 2.00% | 2.00% | ||
Less ALLL | $ 210 | $ 121 | 129 | |
Loans, net | 35,772 | 35,504 | ||
Commercial Portfolio Segment | Agricultural (“AG”) production | Originated | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 11,824 | $ 11,113 | ||
% of Total | 1.00% | 1.00% | ||
Less ALLL | $ 195 | $ 110 | 112 | |
Loans, net | 11,629 | 11,003 | ||
Commercial Portfolio Segment | Agricultural (“AG”) production | Acquired | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 24,158 | $ 24,512 | ||
% of Total | 3.00% | 4.00% | ||
Less ALLL | $ 15 | $ 11 | 17 | |
Loans, net | 24,143 | 24,501 | ||
Commercial Real Estate Portfolio Segment | AG real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 59,468 | $ 53,444 | ||
% of Total | 2.00% | 2.00% | ||
Less ALLL | $ 369 | $ 301 | 296 | |
Loans, net | 59,099 | 53,143 | ||
Commercial Real Estate Portfolio Segment | AG real estate | Originated | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 38,983 | $ 31,374 | ||
% of Total | 2.00% | 2.00% | ||
Less ALLL | $ 312 | $ 255 | 235 | |
Loans, net | 38,671 | 31,119 | ||
Commercial Real Estate Portfolio Segment | AG real estate | Acquired | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 20,485 | $ 22,070 | ||
% of Total | 2.00% | 3.00% | ||
Less ALLL | $ 57 | $ 46 | 61 | |
Loans, net | 20,428 | 22,024 | ||
Commercial Real Estate Portfolio Segment | CRE investment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 443,218 | $ 343,652 | ||
% of Total | 17.00% | 16.00% | ||
Less ALLL | $ 1,600 | $ 1,470 | 1,388 | |
Loans, net | 441,618 | 342,182 | ||
Commercial Real Estate Portfolio Segment | CRE investment | Originated | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 183,746 | $ 171,087 | ||
% of Total | 11.00% | 12.00% | ||
Less ALLL | $ 1,354 | $ 1,230 | 1,154 | |
Loans, net | 182,392 | 169,857 | ||
Commercial Real Estate Portfolio Segment | CRE investment | Acquired | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 259,472 | $ 172,565 | ||
% of Total | 28.00% | 25.00% | ||
Less ALLL | $ 246 | $ 240 | 234 | |
Loans, net | 259,226 | 172,325 | ||
Commercial Real Estate Portfolio Segment | Construction & land development | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 92,970 | $ 80,599 | ||
% of Total | 4.00% | 4.00% | ||
Less ALLL | $ 414 | $ 510 | 726 | |
Loans, net | 92,556 | 80,089 | ||
Commercial Real Estate Portfolio Segment | Construction & land development | Originated | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 56,086 | $ 66,478 | ||
% of Total | 3.00% | 4.00% | ||
Less ALLL | $ 350 | $ 431 | 628 | |
Loans, net | 55,736 | 66,047 | ||
Commercial Real Estate Portfolio Segment | Construction & land development | Acquired | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 36,884 | $ 14,121 | ||
% of Total | 4.00% | 2.00% | ||
Less ALLL | $ 64 | $ 79 | 98 | |
Loans, net | 36,820 | 14,042 | ||
Residential | Residential first mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 432,167 | $ 357,841 | ||
% of Total | 17.00% | 17.00% | ||
Less ALLL | $ 1,669 | $ 1,646 | 1,609 | |
Loans, net | 430,498 | 356,195 | ||
Residential | Residential first mortgage | Originated | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 232,580 | $ 220,368 | ||
% of Total | 14.00% | 15.00% | ||
Less ALLL | $ 1,419 | $ 1,400 | 1,297 | |
Loans, net | 231,161 | 218,968 | ||
Residential | Residential first mortgage | Acquired | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 199,587 | $ 137,473 | ||
% of Total | 22.00% | 20.00% | ||
Less ALLL | $ 250 | $ 246 | 312 | |
Loans, net | 199,337 | 137,227 | ||
Residential | Residential junior mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 122,771 | $ 111,328 | ||
% of Total | 5.00% | 5.00% | ||
Less ALLL | $ 517 | $ 472 | 488 | |
Loans, net | 122,254 | 110,856 | ||
Residential | Residential junior mortgage | Originated | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 90,284 | $ 78,379 | ||
% of Total | 5.00% | 5.00% | ||
Less ALLL | $ 446 | $ 408 | 409 | |
Loans, net | 89,838 | 77,971 | ||
Residential | Residential junior mortgage | Acquired | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 32,487 | $ 32,949 | ||
% of Total | 4.00% | 5.00% | ||
Less ALLL | $ 71 | $ 64 | 79 | |
Loans, net | 32,416 | 32,885 | ||
Residential | Residential construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 54,403 | $ 30,926 | ||
% of Total | 2.00% | 1.00% | ||
Less ALLL | $ 368 | $ 211 | 251 | |
Loans, net | 54,035 | 30,715 | ||
Residential | Residential construction | Originated | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 43,460 | $ 30,926 | ||
% of Total | 3.00% | 2.00% | ||
Less ALLL | $ 325 | $ 211 | 200 | |
Loans, net | 43,135 | 30,715 | ||
Residential | Residential construction | Acquired | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount | $ 10,943 | $ 0 | ||
% of Total | 1.00% | 0.00% | ||
Less ALLL | $ 43 | $ 0 | $ 51 | |
Loans, net | $ 10,900 | $ 0 |
LOANS, ALLOWANCE FOR LOAN LOS_5
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY - Summary of allowance for loan losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
ALLL: | |||
Beginning balance | $ 13,153 | $ 12,653 | $ 11,820 |
Provision for loan losses | 1,200 | 1,600 | 2,325 |
Charge-offs | (927) | (1,213) | (1,604) |
Recoveries | 546 | 113 | 112 |
Net charge-offs | (381) | (1,100) | (1,492) |
Ending balance | $ 13,972 | $ 13,153 | $ 12,653 |
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 | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | $ 13,153 | $ 12,653 | $ 11,820 |
Provision for loan losses | 1,200 | 1,600 | 2,325 |
Charge-offs | (927) | (1,213) | (1,604) |
Recoveries | 546 | 113 | 112 |
Net charge-offs | (381) | (1,100) | (1,492) |
Ending balance | $ 13,972 | $ 13,153 | 12,653 |
As percent of ALLL | 100.00% | 100.00% | |
ALLL: | |||
Individually evaluated | $ 741 | $ 0 | |
Collectively evaluated | 13,231 | 13,153 | |
Loans: | |||
Individually evaluated | 16,891 | 9,939 | |
Collectively evaluated | 2,556,860 | 2,156,242 | |
Total loans | 2,573,751 | 2,166,181 | |
Loans, net | 2,559,779 | 2,153,028 | |
Owner-occupied commercial real estate (“CRE”) | |||
Loans: | |||
Total loans | 496,372 | ||
Retail & other | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 304 | 225 | |
Provision for loan losses | 338 | 267 | |
Charge-offs | (347) | (204) | |
Recoveries | 49 | 16 | |
Net charge-offs | (298) | (188) | |
Ending balance | $ 344 | $ 304 | 225 |
As percent of ALLL | 2.00% | 2.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 344 | 304 | |
Loans: | |||
Individually evaluated | 12 | 12 | |
Collectively evaluated | 30,199 | 26,481 | |
Total loans | 30,211 | 26,493 | |
Loans, net | 29,867 | 26,189 | |
Commercial Portfolio Segment | Commercial & industrial | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 5,271 | 4,934 | |
Provision for loan losses | (61) | 1,107 | |
Charge-offs | (159) | (813) | |
Recoveries | 420 | 43 | |
Net charge-offs | 261 | (770) | |
Ending balance | $ 5,471 | $ 5,271 | 4,934 |
As percent of ALLL | 39.00% | 40.00% | |
ALLL: | |||
Individually evaluated | $ 625 | $ 0 | |
Collectively evaluated | 4,846 | 5,271 | |
Loans: | |||
Individually evaluated | 5,932 | 2,927 | |
Collectively evaluated | 800,257 | 681,993 | |
Total loans | 806,189 | 684,920 | |
Loans, net | 800,718 | 679,649 | |
Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 2,847 | 2,607 | |
Provision for loan losses | 254 | 300 | |
Charge-offs | (93) | (74) | |
Recoveries | 2 | 14 | |
Net charge-offs | (91) | (60) | |
Ending balance | $ 3,010 | $ 2,847 | 2,607 |
As percent of ALLL | 22.00% | 22.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 3,010 | 2,847 | |
Loans: | |||
Individually evaluated | 3,430 | 1,506 | |
Collectively evaluated | 492,942 | 439,847 | |
Total loans | 496,372 | 441,353 | |
Loans, net | 493,362 | 438,506 | |
Commercial Portfolio Segment | Agricultural (“AG”) production | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 121 | 129 | |
Provision for loan losses | 89 | (8) | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net charge-offs | 0 | 0 | |
Ending balance | $ 210 | $ 121 | 129 |
As percent of ALLL | 1.00% | 1.00% | |
ALLL: | |||
Individually evaluated | $ 116 | $ 0 | |
Collectively evaluated | 94 | 121 | |
Loans: | |||
Individually evaluated | 1,061 | 0 | |
Collectively evaluated | 34,921 | 35,625 | |
Total loans | 35,982 | 35,625 | |
Loans, net | 35,772 | 35,504 | |
Commercial Real Estate Portfolio Segment | AG real estate | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 301 | 296 | |
Provision for loan losses | 68 | 5 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net charge-offs | 0 | 0 | |
Ending balance | $ 369 | $ 301 | 296 |
As percent of ALLL | 3.00% | 2.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 369 | 301 | |
Loans: | |||
Individually evaluated | 1,073 | 222 | |
Collectively evaluated | 58,395 | 53,222 | |
Total loans | 59,468 | 53,444 | |
Loans, net | 59,099 | 53,143 | |
Commercial Real Estate Portfolio Segment | CRE investment | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 1,470 | 1,388 | |
Provision for loan losses | 130 | 119 | |
Charge-offs | 0 | (37) | |
Recoveries | 0 | 0 | |
Net charge-offs | 0 | (37) | |
Ending balance | $ 1,600 | $ 1,470 | 1,388 |
As percent of ALLL | 11.00% | 11.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 1,600 | 1,470 | |
Loans: | |||
Individually evaluated | 2,426 | 1,686 | |
Collectively evaluated | 440,792 | 341,966 | |
Total loans | 443,218 | 343,652 | |
Loans, net | 441,618 | 342,182 | |
Commercial Real Estate Portfolio Segment | Construction & land development | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 510 | 726 | |
Provision for loan losses | (96) | (216) | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net charge-offs | 0 | 0 | |
Ending balance | $ 414 | $ 510 | 726 |
As percent of ALLL | 3.00% | 4.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 414 | 510 | |
Loans: | |||
Individually evaluated | 382 | 603 | |
Collectively evaluated | 92,588 | 79,996 | |
Total loans | 92,970 | 80,599 | |
Loans, net | 92,556 | 80,089 | |
Residential | Residential first mortgage | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 1,646 | 1,609 | |
Provision for loan losses | 9 | 117 | |
Charge-offs | (22) | (85) | |
Recoveries | 36 | 5 | |
Net charge-offs | 14 | (80) | |
Ending balance | $ 1,669 | $ 1,646 | 1,609 |
As percent of ALLL | 12.00% | 12.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 1,669 | 1,646 | |
Loans: | |||
Individually evaluated | 2,357 | 2,750 | |
Collectively evaluated | 429,810 | 355,091 | |
Total loans | 432,167 | 357,841 | |
Loans, net | 430,498 | 356,195 | |
Residential | Residential junior mortgage | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 472 | 488 | |
Provision for loan losses | 86 | (51) | |
Charge-offs | (80) | 0 | |
Recoveries | 39 | 35 | |
Net charge-offs | (41) | 35 | |
Ending balance | $ 517 | $ 472 | 488 |
As percent of ALLL | 4.00% | 4.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 517 | 472 | |
Loans: | |||
Individually evaluated | 218 | 233 | |
Collectively evaluated | 122,553 | 111,095 | |
Total loans | 122,771 | 111,328 | |
Loans, net | 122,254 | 110,856 | |
Residential | Residential construction | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 211 | 251 | |
Provision for loan losses | 383 | (40) | |
Charge-offs | (226) | 0 | |
Recoveries | 0 | 0 | |
Net charge-offs | (226) | 0 | |
Ending balance | $ 368 | $ 211 | 251 |
As percent of ALLL | 3.00% | 2.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 368 | 211 | |
Loans: | |||
Individually evaluated | 0 | 0 | |
Collectively evaluated | 54,403 | 30,926 | |
Total loans | 54,403 | 30,926 | |
Loans, net | 54,035 | 30,715 | |
Originated | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 11,448 | 10,542 | |
Provision for loan losses | 895 | 2,014 | |
Charge-offs | (767) | (1,200) | |
Recoveries | 540 | 92 | |
Net charge-offs | (227) | (1,108) | |
Ending balance | $ 12,116 | $ 11,448 | 10,542 |
As percent of ALLL | 100.00% | 100.00% | |
ALLL: | |||
Individually evaluated | $ 741 | $ 0 | |
Collectively evaluated | 11,375 | 11,448 | |
Loans: | |||
Individually evaluated | 5,708 | 548 | |
Collectively evaluated | 1,650,107 | 1,484,617 | |
Total loans | 1,655,815 | 1,485,165 | |
Loans, net | 1,643,699 | 1,473,717 | |
Originated | Retail & other | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 281 | 200 | |
Provision for loan losses | 335 | 266 | |
Charge-offs | (347) | (201) | |
Recoveries | 49 | 16 | |
Net charge-offs | (298) | (185) | |
Ending balance | $ 318 | $ 281 | 200 |
As percent of ALLL | 2.00% | 2.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 318 | 281 | |
Loans: | |||
Individually evaluated | 0 | 0 | |
Collectively evaluated | 28,373 | 23,809 | |
Total loans | 28,373 | 23,809 | |
Loans, net | 28,055 | 23,528 | |
Originated | Commercial Portfolio Segment | Commercial & industrial | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 4,683 | 4,192 | |
Provision for loan losses | (207) | 1,262 | |
Charge-offs | (59) | (813) | |
Recoveries | 420 | 42 | |
Net charge-offs | 361 | (771) | |
Ending balance | $ 4,837 | $ 4,683 | 4,192 |
As percent of ALLL | 40.00% | 41.00% | |
ALLL: | |||
Individually evaluated | $ 625 | $ 0 | |
Collectively evaluated | 4,212 | 4,683 | |
Loans: | |||
Individually evaluated | 1,993 | 227 | |
Collectively evaluated | 639,348 | 567,873 | |
Total loans | 641,341 | 568,100 | |
Loans, net | 636,504 | 563,417 | |
Originated | Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 2,439 | 2,115 | |
Provision for loan losses | 212 | 385 | |
Charge-offs | (93) | (64) | |
Recoveries | 2 | 3 | |
Net charge-offs | (91) | (61) | |
Ending balance | $ 2,560 | $ 2,439 | 2,115 |
As percent of ALLL | 21.00% | 21.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 2,560 | 2,439 | |
Loans: | |||
Individually evaluated | 1,845 | 321 | |
Collectively evaluated | 327,293 | 283,210 | |
Total loans | 329,138 | 283,531 | |
Loans, net | 326,578 | 281,092 | |
Originated | Commercial Portfolio Segment | Agricultural (“AG”) production | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 110 | 112 | |
Provision for loan losses | 85 | (2) | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net charge-offs | 0 | 0 | |
Ending balance | $ 195 | $ 110 | 112 |
As percent of ALLL | 2.00% | 1.00% | |
ALLL: | |||
Individually evaluated | $ 116 | $ 0 | |
Collectively evaluated | 79 | 110 | |
Loans: | |||
Individually evaluated | 1,008 | 0 | |
Collectively evaluated | 10,816 | 11,113 | |
Total loans | 11,824 | 11,113 | |
Loans, net | 11,629 | 11,003 | |
Originated | Commercial Real Estate Portfolio Segment | AG real estate | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 255 | 235 | |
Provision for loan losses | 57 | 20 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net charge-offs | 0 | 0 | |
Ending balance | $ 312 | $ 255 | 235 |
As percent of ALLL | 2.00% | 2.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 312 | 255 | |
Loans: | |||
Individually evaluated | 862 | 0 | |
Collectively evaluated | 38,121 | 31,374 | |
Total loans | 38,983 | 31,374 | |
Loans, net | 38,671 | 31,119 | |
Originated | Commercial Real Estate Portfolio Segment | CRE investment | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 1,230 | 1,154 | |
Provision for loan losses | 124 | 113 | |
Charge-offs | 0 | (37) | |
Recoveries | 0 | 0 | |
Net charge-offs | 0 | (37) | |
Ending balance | $ 1,354 | $ 1,230 | 1,154 |
As percent of ALLL | 11.00% | 11.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 1,354 | 1,230 | |
Loans: | |||
Individually evaluated | 0 | 0 | |
Collectively evaluated | 183,746 | 171,087 | |
Total loans | 183,746 | 171,087 | |
Loans, net | 182,392 | 169,857 | |
Originated | Commercial Real Estate Portfolio Segment | Construction & land development | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 431 | 628 | |
Provision for loan losses | (81) | (197) | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net charge-offs | 0 | 0 | |
Ending balance | $ 350 | $ 431 | 628 |
As percent of ALLL | 3.00% | 4.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 350 | 431 | |
Loans: | |||
Individually evaluated | 0 | 0 | |
Collectively evaluated | 56,086 | 66,478 | |
Total loans | 56,086 | 66,478 | |
Loans, net | 55,736 | 66,047 | |
Originated | Residential | Residential first mortgage | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 1,400 | 1,297 | |
Provision for loan losses | 5 | 187 | |
Charge-offs | (22) | (85) | |
Recoveries | 36 | 1 | |
Net charge-offs | 14 | (84) | |
Ending balance | $ 1,419 | $ 1,400 | 1,297 |
As percent of ALLL | 12.00% | 12.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 1,419 | 1,400 | |
Loans: | |||
Individually evaluated | 0 | 0 | |
Collectively evaluated | 232,580 | 220,368 | |
Total loans | 232,580 | 220,368 | |
Loans, net | 231,161 | 218,968 | |
Originated | Residential | Residential junior mortgage | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 408 | 409 | |
Provision for loan losses | 25 | (31) | |
Charge-offs | (20) | 0 | |
Recoveries | 33 | 30 | |
Net charge-offs | 13 | 30 | |
Ending balance | $ 446 | $ 408 | 409 |
As percent of ALLL | 4.00% | 4.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 446 | 408 | |
Loans: | |||
Individually evaluated | 0 | 0 | |
Collectively evaluated | 90,284 | 78,379 | |
Total loans | 90,284 | 78,379 | |
Loans, net | 89,838 | 77,971 | |
Originated | Residential | Residential construction | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 211 | 200 | |
Provision for loan losses | 340 | 11 | |
Charge-offs | (226) | 0 | |
Recoveries | 0 | 0 | |
Net charge-offs | (226) | 0 | |
Ending balance | $ 325 | $ 211 | 200 |
As percent of ALLL | 3.00% | 2.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 325 | 211 | |
Loans: | |||
Individually evaluated | 0 | 0 | |
Collectively evaluated | 43,460 | 30,926 | |
Total loans | 43,460 | 30,926 | |
Loans, net | 43,135 | 30,715 | |
Acquired | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 1,705 | 2,111 | |
Provision for loan losses | 305 | (414) | |
Charge-offs | (160) | (13) | |
Recoveries | 6 | 21 | |
Net charge-offs | (154) | 8 | |
Ending balance | $ 1,856 | $ 1,705 | 2,111 |
As percent of ALLL | 100.00% | 100.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 1,856 | 1,705 | |
Loans: | |||
Individually evaluated | 11,183 | 9,391 | |
Collectively evaluated | 906,753 | 671,625 | |
Total loans | 917,936 | 681,016 | |
Loans, net | 916,080 | 679,311 | |
Acquired | Owner-occupied commercial real estate (“CRE”) | |||
Loans: | |||
Total loans | 157,822 | ||
Acquired | Retail & other | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 23 | 25 | |
Provision for loan losses | 3 | 1 | |
Charge-offs | 0 | (3) | |
Recoveries | 0 | 0 | |
Net charge-offs | 0 | (3) | |
Ending balance | $ 26 | $ 23 | 25 |
As percent of ALLL | 1.00% | 1.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 26 | 23 | |
Loans: | |||
Individually evaluated | 12 | 12 | |
Collectively evaluated | 1,826 | 2,672 | |
Total loans | 1,838 | 2,684 | |
Loans, net | 1,812 | 2,661 | |
Acquired | Commercial Portfolio Segment | Commercial & industrial | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 588 | 742 | |
Provision for loan losses | 146 | (155) | |
Charge-offs | (100) | 0 | |
Recoveries | 0 | 1 | |
Net charge-offs | (100) | 1 | |
Ending balance | $ 634 | $ 588 | 742 |
As percent of ALLL | 34.00% | 34.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 634 | 588 | |
Loans: | |||
Individually evaluated | 3,939 | 2,700 | |
Collectively evaluated | 160,909 | 114,120 | |
Total loans | 164,848 | 116,820 | |
Loans, net | 164,214 | 116,232 | |
Acquired | Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 408 | 492 | |
Provision for loan losses | 42 | (85) | |
Charge-offs | 0 | (10) | |
Recoveries | 0 | 11 | |
Net charge-offs | 0 | 1 | |
Ending balance | $ 450 | $ 408 | 492 |
As percent of ALLL | 24.00% | 24.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 450 | 408 | |
Loans: | |||
Individually evaluated | 1,585 | 1,185 | |
Collectively evaluated | 165,649 | 156,637 | |
Total loans | 167,234 | 157,822 | |
Loans, net | 166,784 | 157,414 | |
Acquired | Commercial Portfolio Segment | Agricultural (“AG”) production | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 11 | 17 | |
Provision for loan losses | 4 | (6) | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net charge-offs | 0 | 0 | |
Ending balance | $ 15 | $ 11 | 17 |
As percent of ALLL | 1.00% | 1.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 15 | 11 | |
Loans: | |||
Individually evaluated | 53 | 0 | |
Collectively evaluated | 24,105 | 24,512 | |
Total loans | 24,158 | 24,512 | |
Loans, net | 24,143 | 24,501 | |
Acquired | Commercial Real Estate Portfolio Segment | AG real estate | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 46 | 61 | |
Provision for loan losses | 11 | (15) | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net charge-offs | 0 | 0 | |
Ending balance | $ 57 | $ 46 | 61 |
As percent of ALLL | 3.00% | 3.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 57 | 46 | |
Loans: | |||
Individually evaluated | 211 | 222 | |
Collectively evaluated | 20,274 | 21,848 | |
Total loans | 20,485 | 22,070 | |
Loans, net | 20,428 | 22,024 | |
Acquired | Commercial Real Estate Portfolio Segment | CRE investment | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 240 | 234 | |
Provision for loan losses | 6 | 6 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net charge-offs | 0 | 0 | |
Ending balance | $ 246 | $ 240 | 234 |
As percent of ALLL | 13.00% | 14.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 246 | 240 | |
Loans: | |||
Individually evaluated | 2,426 | 1,686 | |
Collectively evaluated | 257,046 | 170,879 | |
Total loans | 259,472 | 172,565 | |
Loans, net | 259,226 | 172,325 | |
Acquired | Commercial Real Estate Portfolio Segment | Construction & land development | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 79 | 98 | |
Provision for loan losses | (15) | (19) | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net charge-offs | 0 | 0 | |
Ending balance | $ 64 | $ 79 | 98 |
As percent of ALLL | 4.00% | 5.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 64 | 79 | |
Loans: | |||
Individually evaluated | 382 | 603 | |
Collectively evaluated | 36,502 | 13,518 | |
Total loans | 36,884 | 14,121 | |
Loans, net | 36,820 | 14,042 | |
Acquired | Residential | Residential first mortgage | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 246 | 312 | |
Provision for loan losses | 4 | (70) | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 4 | |
Net charge-offs | 0 | 4 | |
Ending balance | $ 250 | $ 246 | 312 |
As percent of ALLL | 14.00% | 14.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 250 | 246 | |
Loans: | |||
Individually evaluated | 2,357 | 2,750 | |
Collectively evaluated | 197,230 | 134,723 | |
Total loans | 199,587 | 137,473 | |
Loans, net | 199,337 | 137,227 | |
Acquired | Residential | Residential junior mortgage | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 64 | 79 | |
Provision for loan losses | 61 | (20) | |
Charge-offs | (60) | 0 | |
Recoveries | 6 | 5 | |
Net charge-offs | (54) | 5 | |
Ending balance | $ 71 | $ 64 | 79 |
As percent of ALLL | 4.00% | 4.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 71 | 64 | |
Loans: | |||
Individually evaluated | 218 | 233 | |
Collectively evaluated | 32,269 | 32,716 | |
Total loans | 32,487 | 32,949 | |
Loans, net | 32,416 | 32,885 | |
Acquired | Residential | Residential construction | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 0 | 51 | |
Provision for loan losses | 43 | (51) | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net charge-offs | 0 | 0 | |
Ending balance | $ 43 | $ 0 | $ 51 |
As percent of ALLL | 2.00% | 0.00% | |
ALLL: | |||
Individually evaluated | $ 0 | $ 0 | |
Collectively evaluated | 43 | 0 | |
Loans: | |||
Individually evaluated | 0 | 0 | |
Collectively evaluated | 10,943 | 0 | |
Total loans | 10,943 | 0 | |
Loans, net | $ 10,900 | $ 0 |
LOANS, ALLOWANCE FOR LOAN LOS_7
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY - Nonaccrual loans by portfolio segment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 14,122 | $ 5,471 |
% of Total | 100.00% | 100.00% |
Percent of nonaccrual loans | 0.50% | 0.20% |
Retail & other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 1 | $ 0 |
% of Total | 0.00% | 0.00% |
Commercial Portfolio Segment | Commercial & industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 6,249 | $ 2,816 |
% of Total | 44.00% | 52.00% |
Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 3,311 | $ 673 |
% of Total | 23.00% | 12.00% |
Commercial Portfolio Segment | Agricultural (“AG”) production | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 1,062 | $ 0 |
% of Total | 8.00% | 0.00% |
Commercial Real Estate Portfolio Segment | AG real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 836 | $ 164 |
% of Total | 6.00% | 3.00% |
Commercial Real Estate Portfolio Segment | CRE investment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 1,073 | $ 210 |
% of Total | 8.00% | 4.00% |
Commercial Real Estate Portfolio Segment | Construction & land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 20 | $ 80 |
% of Total | 0.00% | 1.00% |
Residential | Residential first mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 1,090 | $ 1,265 |
% of Total | 8.00% | 23.00% |
Residential | Residential junior mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 480 | $ 262 |
% of Total | 3.00% | 5.00% |
Residential | Residential construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 0 | $ 1 |
% of Total | 0.00% | 0.00% |
Originated | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 6,324 | $ 1,409 |
% of Total | 100.00% | 100.00% |
Percent of nonaccrual loans | 45.00% | 26.00% |
Originated | Retail & other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 1 | $ 0 |
% of Total | 0.00% | 0.00% |
Originated | Commercial Portfolio Segment | Commercial & industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 2,283 | $ 352 |
% of Total | 36.00% | 25.00% |
Originated | Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 1,846 | $ 362 |
% of Total | 29.00% | 26.00% |
Originated | Commercial Portfolio Segment | Agricultural (“AG”) production | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 1,009 | $ 0 |
% of Total | 16.00% | 0.00% |
Originated | Commercial Real Estate Portfolio Segment | AG real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 625 | $ 0 |
% of Total | 10.00% | 0.00% |
Originated | Commercial Real Estate Portfolio Segment | CRE investment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 0 | $ 0 |
% of Total | 0.00% | 0.00% |
Originated | Commercial Real Estate Portfolio Segment | Construction & land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 0 | $ 0 |
% of Total | 0.00% | 0.00% |
Originated | Residential | Residential first mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 434 | $ 629 |
% of Total | 7.00% | 45.00% |
Originated | Residential | Residential junior mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 126 | $ 65 |
% of Total | 2.00% | 4.00% |
Originated | Residential | Residential construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 0 | $ 1 |
% of Total | 0.00% | 0.00% |
Acquired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 7,798 | $ 4,062 |
% of Total | 100.00% | 100.00% |
Percent of nonaccrual loans | 55.00% | 74.00% |
Acquired | Retail & other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 0 | $ 0 |
% of Total | 0.00% | 0.00% |
Acquired | Commercial Portfolio Segment | Commercial & industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 3,966 | $ 2,464 |
% of Total | 51.00% | 61.00% |
Acquired | Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 1,465 | $ 311 |
% of Total | 19.00% | 8.00% |
Acquired | Commercial Portfolio Segment | Agricultural (“AG”) production | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 53 | $ 0 |
% of Total | 1.00% | 0.00% |
Acquired | Commercial Real Estate Portfolio Segment | AG real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 211 | $ 164 |
% of Total | 3.00% | 4.00% |
Acquired | Commercial Real Estate Portfolio Segment | CRE investment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 1,073 | $ 210 |
% of Total | 14.00% | 5.00% |
Acquired | Commercial Real Estate Portfolio Segment | Construction & land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 20 | $ 80 |
% of Total | 0.00% | 2.00% |
Acquired | Residential | Residential first mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 656 | $ 636 |
% of Total | 8.00% | 15.00% |
Acquired | Residential | Residential junior mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 354 | $ 197 |
% of Total | 4.00% | 5.00% |
Acquired | Residential | Residential construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 0 | $ 0 |
% 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 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | $ 2,552,360 | $ 2,159,139 |
Amount | $ 2,573,751 | $ 2,166,181 |
Current - As a percent of total loans | 99.20% | 99.70% |
As a percent of total loans | 100.00% | 100.00% |
30-89 Days Past Due (accruing) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | $ 7,269 | $ 1,571 |
Percent of total loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Percent Past Due | 0.30% | 0.10% |
90 Days & Over or nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | $ 14,122 | $ 5,471 |
Financing Receivable, Percent Past Due | 0.50% | 0.20% |
Owner-occupied commercial real estate (“CRE”) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 496,372 | |
Retail & other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 30,100 | $ 26,483 |
Amount | 30,211 | 26,493 |
Retail & other | 30-89 Days Past Due (accruing) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 110 | 10 |
Retail & other | 90 Days & Over or nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 1 | 0 |
Commercial Portfolio Segment | Commercial & industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 798,211 | 682,104 |
Amount | 806,189 | 684,920 |
Commercial Portfolio Segment | Commercial & industrial | 30-89 Days Past Due (accruing) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 1,729 | 0 |
Commercial Portfolio Segment | Commercial & industrial | 90 Days & Over or nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 6,249 | 2,816 |
Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 492,949 | 440,123 |
Amount | 496,372 | 441,353 |
Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | 30-89 Days Past Due (accruing) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 112 | 557 |
Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | 90 Days & Over or nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 3,311 | 673 |
Commercial Portfolio Segment | Agricultural (“AG”) production | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 34,920 | 35,606 |
Amount | 35,982 | 35,625 |
Commercial Portfolio Segment | Agricultural (“AG”) production | 30-89 Days Past Due (accruing) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 0 | 19 |
Commercial Portfolio Segment | Agricultural (“AG”) production | 90 Days & Over or nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 1,062 | 0 |
Commercial Real Estate Portfolio Segment | AG real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 58,632 | 53,245 |
Amount | 59,468 | 53,444 |
Commercial Real Estate Portfolio Segment | AG real estate | 30-89 Days Past Due (accruing) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 0 | 35 |
Commercial Real Estate Portfolio Segment | AG real estate | 90 Days & Over or nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 836 | 164 |
Commercial Real Estate Portfolio Segment | CRE investment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 442,145 | 343,262 |
Amount | 443,218 | 343,652 |
Commercial Real Estate Portfolio Segment | CRE investment | 30-89 Days Past Due (accruing) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 0 | 180 |
Commercial Real Estate Portfolio Segment | CRE investment | 90 Days & Over or nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 1,073 | 210 |
Commercial Real Estate Portfolio Segment | Construction & land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 90,887 | 80,519 |
Amount | 92,970 | 80,599 |
Commercial Real Estate Portfolio Segment | Construction & land development | 30-89 Days Past Due (accruing) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 2,063 | 0 |
Commercial Real Estate Portfolio Segment | Construction & land development | 90 Days & Over or nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 20 | 80 |
Residential | Residential first mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 428,341 | 355,818 |
Amount | 432,167 | 357,841 |
Residential | Residential first mortgage | 30-89 Days Past Due (accruing) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 2,736 | 758 |
Residential | Residential first mortgage | 90 Days & Over or nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 1,090 | 1,265 |
Residential | Residential junior mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 122,074 | 111,054 |
Amount | 122,771 | 111,328 |
Residential | Residential junior mortgage | 30-89 Days Past Due (accruing) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 217 | 12 |
Residential | Residential junior mortgage | 90 Days & Over or nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 480 | 262 |
Residential | Residential construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 54,101 | 30,925 |
Amount | 54,403 | 30,926 |
Residential | Residential construction | 30-89 Days Past Due (accruing) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 302 | 0 |
Residential | Residential construction | 90 Days & Over or nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | $ 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 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 2,573,751 | $ 2,166,181 |
Percent of total | 100.00% | 100.00% |
Grades 1-4 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 2,457,922 | $ 2,061,424 |
Percent of total | 95.50% | 95.10% |
Grade 5 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 63,966 | $ 58,822 |
Percent of total | 2.50% | 2.70% |
Grade 6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 15,152 | $ 18,607 |
Percent of total | 0.60% | 0.90% |
Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 36,711 | $ 27,328 |
Percent of total | 1.40% | 1.30% |
Retail & other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 30,211 | $ 26,493 |
Retail & other | Grades 1-4 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 30,210 | 26,493 |
Retail & other | Grade 5 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 0 | 0 |
Retail & other | Grade 6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 0 | 0 |
Retail & other | Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 1 | 0 |
Commercial Portfolio Segment | Commercial & industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 806,189 | 684,920 |
Commercial Portfolio Segment | Commercial & industrial | Grades 1-4 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 765,073 | 649,475 |
Commercial Portfolio Segment | Commercial & industrial | Grade 5 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 20,199 | 16,145 |
Commercial Portfolio Segment | Commercial & industrial | Grade 6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 7,663 | 6,178 |
Commercial Portfolio Segment | Commercial & industrial | Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 13,254 | 13,122 |
Commercial Portfolio Segment | Owner-occupied CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 496,372 | 441,353 |
Commercial Portfolio Segment | Owner-occupied CRE | Grades 1-4 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 464,661 | 405,198 |
Commercial Portfolio Segment | Owner-occupied CRE | Grade 5 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 20,855 | 22,776 |
Commercial Portfolio Segment | Owner-occupied CRE | Grade 6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 953 | 6,569 |
Commercial Portfolio Segment | Owner-occupied CRE | Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 9,903 | 6,810 |
Commercial Portfolio Segment | Agricultural (“AG”) production | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 35,982 | 35,625 |
Commercial Portfolio Segment | Agricultural (“AG”) production | Grades 1-4 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 27,521 | 29,363 |
Commercial Portfolio Segment | Agricultural (“AG”) production | Grade 5 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 3,174 | 3,302 |
Commercial Portfolio Segment | Agricultural (“AG”) production | Grade 6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 1,229 | 2,351 |
Commercial Portfolio Segment | Agricultural (“AG”) production | Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 4,058 | 609 |
Commercial Real Estate Portfolio Segment | AG real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 59,468 | 53,444 |
Commercial Real Estate Portfolio Segment | AG real estate | Grades 1-4 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 49,561 | 46,248 |
Commercial Real Estate Portfolio Segment | AG real estate | Grade 5 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 3,611 | 3,246 |
Commercial Real Estate Portfolio Segment | AG real estate | Grade 6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 2,046 | 2,983 |
Commercial Real Estate Portfolio Segment | AG real estate | Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 4,250 | 967 |
Commercial Real Estate Portfolio Segment | CRE investment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 443,218 | 343,652 |
Commercial Real Estate Portfolio Segment | CRE investment | Grades 1-4 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 430,794 | 334,080 |
Commercial Real Estate Portfolio Segment | CRE investment | Grade 5 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 8,085 | 6,792 |
Commercial Real Estate Portfolio Segment | CRE investment | Grade 6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 2,578 | 0 |
Commercial Real Estate Portfolio Segment | CRE investment | Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 1,761 | 2,780 |
Commercial Real Estate Portfolio Segment | Construction & land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 92,970 | 80,599 |
Commercial Real Estate Portfolio Segment | Construction & land development | Grades 1-4 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 90,523 | 75,365 |
Commercial Real Estate Portfolio Segment | Construction & land development | Grade 5 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 2,213 | 5,138 |
Commercial Real Estate Portfolio Segment | Construction & land development | Grade 6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 15 | 16 |
Commercial Real Estate Portfolio Segment | Construction & land development | Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 219 | 80 |
Residential | Residential first mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 432,167 | 357,841 |
Residential | Residential first mortgage | Grades 1-4 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 424,044 | 353,239 |
Residential | Residential first mortgage | Grade 5 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 4,677 | 1,406 |
Residential | Residential first mortgage | Grade 6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 668 | 510 |
Residential | Residential first mortgage | Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 2,778 | 2,686 |
Residential | Residential junior mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 122,771 | 111,328 |
Residential | Residential junior mortgage | Grades 1-4 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 122,249 | 111,037 |
Residential | Residential junior mortgage | Grade 5 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 35 | 17 |
Residential | Residential junior mortgage | Grade 6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 0 | 0 |
Residential | Residential junior mortgage | Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 487 | 274 |
Residential | Residential construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 54,403 | 30,926 |
Residential | Residential construction | Grades 1-4 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 53,286 | 30,926 |
Residential | Residential construction | Grade 5 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 1,117 | 0 |
Residential | Residential construction | Grade 6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | 0 | 0 |
Residential | Residential construction | Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount | $ 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 | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Impaired Financing Receivable, with No Realted Allowance | ||
Recorded Investment | $ 16,891 | $ 9,939 |
Unpaid Principal Balance | 20,300 | 16,021 |
Related Allowance | 741 | 0 |
Average Recorded Investment | 16,998 | 10,699 |
Interest Income Recognized | 2,063 | 1,199 |
Impaired Financing Receivable | ||
Recorded Investment | 16,891 | 9,939 |
Unpaid Principal Balance | 20,300 | 16,021 |
Related Allowance | 741 | 0 |
Average Recorded Investment | 16,998 | 10,699 |
Interest Income Recognized | 2,063 | 1,199 |
Retail & other | ||
Impaired Financing Receivable, with No Realted Allowance | ||
Recorded Investment | 12 | 12 |
Unpaid Principal Balance | 12 | 12 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 12 | 12 |
Interest Income Recognized | 0 | 1 |
Commercial Portfolio Segment | Commercial & industrial | ||
Impaired Financing Receivable, with No Realted Allowance | ||
Recorded Investment | 5,932 | 2,927 |
Unpaid Principal Balance | 7,950 | 6,736 |
Related Allowance | 625 | 0 |
Average Recorded Investment | 5,405 | 4,041 |
Interest Income Recognized | 1,170 | 660 |
Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | ||
Impaired Financing Receivable, with No Realted Allowance | ||
Recorded Investment | 3,430 | 1,506 |
Unpaid Principal Balance | 4,016 | 1,833 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 3,677 | 1,659 |
Interest Income Recognized | 256 | 137 |
Commercial Portfolio Segment | Agricultural (“AG”) production | ||
Impaired Financing Receivable, with No Realted Allowance | ||
Recorded Investment | 1,061 | 0 |
Unpaid Principal Balance | 1,090 | 0 |
Related Allowance | 116 | 0 |
Average Recorded Investment | 1,221 | 0 |
Interest Income Recognized | 28 | 0 |
Commercial Real Estate Portfolio Segment | AG real estate | ||
Impaired Financing Receivable, with No Realted Allowance | ||
Recorded Investment | 1,073 | 222 |
Unpaid Principal Balance | 1,082 | 281 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 1,090 | 238 |
Interest Income Recognized | 9 | 26 |
Commercial Real Estate Portfolio Segment | CRE investment | ||
Impaired Financing Receivable, with No Realted Allowance | ||
Recorded Investment | 2,426 | 1,686 |
Unpaid Principal Balance | 2,790 | 2,484 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 2,497 | 1,606 |
Interest Income Recognized | 364 | 163 |
Commercial Real Estate Portfolio Segment | Construction & land development | ||
Impaired Financing Receivable, with No Realted Allowance | ||
Recorded Investment | 382 | 603 |
Unpaid Principal Balance | 382 | 1,506 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 460 | 603 |
Interest Income Recognized | 0 | 21 |
Residential | Residential first mortgage | ||
Impaired Financing Receivable, with No Realted Allowance | ||
Recorded Investment | 2,357 | 2,750 |
Unpaid Principal Balance | 2,629 | 2,907 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 2,412 | 2,478 |
Interest Income Recognized | 178 | 176 |
Residential | Residential junior mortgage | ||
Impaired Financing Receivable, with No Realted Allowance | ||
Recorded Investment | 218 | 233 |
Unpaid Principal Balance | 349 | 262 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 224 | 62 |
Interest Income Recognized | 58 | 15 |
Residential | Residential construction | ||
Impaired Financing Receivable, with No Realted Allowance | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Originated | ||
Impaired Financing Receivable | ||
Recorded Investment | 5,708 | 548 |
Unpaid Principal Balance | 5,938 | 548 |
Related Allowance | 741 | 0 |
Average Recorded Investment | 5,978 | 899 |
Interest Income Recognized | 230 | 154 |
Acquired | ||
Impaired Financing Receivable | ||
Recorded Investment | 11,183 | 9,391 |
Unpaid Principal Balance | 14,362 | 15,473 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 11,020 | 9,800 |
Interest Income Recognized | $ 1,833 | $ 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 | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accretion Discount [Roll Forward] | ||
Balance at beginning of period | $ 6,408 | $ 9,471 |
Acquired balance, net | 911 | 0 |
Accretion To Loan Interest Income | (4,713) | (1,976) |
Transferred to accretable | 0 | (990) |
Disposals of loans | (679) | (97) |
Balance at end of period | $ 1,927 | $ 6,408 |
PREMISES AND EQUIPMENT - Narrat
PREMISES AND EQUIPMENT - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense | $ 3.8 | $ 4.4 | $ 4.2 | |
Rent expense | $ 1.2 | $ 1.4 | $ 1.1 | |
Lease termination liability | $ 0.7 | |||
Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Renewal term on operating leases | 5 years | 5 years | ||
Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Renewal term on operating leases | 10 years | 10 years | ||
Land and Building | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Remaining lease term on operating leases | 2 years | |||
Land and Building | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Remaining lease term on operating leases | 6 years |
PREMISES AND EQUIPMENT - Summar
PREMISES AND EQUIPMENT - Summary of premises and equipment, less accumulated depreciation (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 86,943 | $ 74,982 |
Less accumulated depreciation and amortization | 30,474 | 26,809 |
Premises and equipment, net | 56,469 | 48,173 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 7,418 | 6,220 |
Land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 3,865 | 3,842 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 50,818 | 42,238 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 4,580 | 4,092 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 20,262 | $ 18,590 |
PREMISES AND EQUIPMENT - Other
PREMISES AND EQUIPMENT - Other Information Related To Operating Leases (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Property, Plant and Equipment [Abstract] | |
Operating lease cost | $ 970 |
Variable lease cost | 233 |
Net lease cost | $ 1,203 |
Weighted average remaining lease term (years) | 4 years 4 months 2 days |
Weighted average discount rate | 2.50% |
PREMISES AND EQUIPMENT - Minimu
PREMISES AND EQUIPMENT - Minimum annual rentals under these noncancelable agreements with remaining terms in excess of one year (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Property, Plant and Equipment [Abstract] | |
2020 | $ 1,088 |
2021 | 962 |
2022 | 851 |
2023 | 607 |
2024 | 499 |
Thereafter | 16 |
Lessee, Operating Lease, Liability, Payments, Due | 4,023 |
Less: amount representing interest | (100) |
Present value of net future minimum lease payments | $ 3,923 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLES AND MORTGAGE SERVICING RIGHTS Other Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill: | ||
Goodwill at beginning of year | $ 107,366 | $ 107,366 |
Acquisition | 44,594 | 0 |
Impairment | (762) | 0 |
Goodwill at end of year | $ 151,198 | $ 107,366 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLES AND MORTGAGE SERVICING RIGHTS - Summary of Goodwill and Other Intangibles (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill And Intangible Assets And Mortgage Servicing Rights [Line Items] | |||
Goodwill | $ 151,198 | $ 107,366 | $ 107,366 |
Goodwill and other intangibles, net | 165,967 | 124,307 | |
Core deposit intangibles | |||
Goodwill And Intangible Assets And Mortgage Servicing Rights [Line Items] | |||
Other intangibles | 10,897 | 12,562 | |
Customer list intangibles: | |||
Goodwill And Intangible Assets And Mortgage Servicing Rights [Line Items] | |||
Other intangibles | 3,872 | 4,379 | |
Other intangibles | |||
Goodwill And Intangible Assets And Mortgage Servicing Rights [Line Items] | |||
Other intangibles | $ 14,769 | $ 16,941 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLES AND MORTGAGE SERVICING RIGHTS - Other Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization during the period | $ 3,872 | $ 4,389 | $ 4,695 |
Core deposit intangibles: | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 30,715 | 29,015 | |
Accumulated amortization | (19,818) | (16,453) | |
Net book value | 10,897 | 12,562 | |
Additions during the period | 1,700 | 0 | |
Amortization during the period | 3,365 | 3,915 | |
Customer list intangibles: | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 5,523 | 5,523 | |
Accumulated amortization | (1,651) | (1,144) | |
Net book value | 3,872 | 4,379 | |
Additions during the period | 0 | 290 | |
Amortization during the period | $ 507 | $ 474 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLES AND MORTGAGE SERVICING RIGHTS (Details 2) - Mortgage Servicing Rights - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
MSR Asset | ||
MSR asset at beginning of year | $ 3,749 | $ 3,187 |
Capitalized MSR | 2,876 | 1,203 |
MSR asset acquired | 160 | 0 |
Amortization during the period | (866) | (641) |
MSR asset at end of year | 5,919 | 3,749 |
Fair value of MSR asset at end of period | 8,420 | 6,347 |
Residential mortgage loans serviced for others | $ 847,756 | $ 603,446 |
Net Book Value Of Msr Asset To Loans Serviced For Others | 0.70% | 0.62% |
GOODWILL AND OTHER INTANGIBLE_7
GOODWILL AND OTHER INTANGIBLES AND MORTGAGE SERVICING RIGHTS (Details 3) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Core deposit intangibles | ||
Core Deposit and Customer List Intangibles | ||
2020 | $ 2,993 | |
2021 | 2,453 | |
2022 | 1,987 | |
2023 | 1,490 | |
2024 | 1,010 | |
Thereafter | 964 | |
Net book value | 10,897 | $ 12,562 |
Customer list intangibles: | ||
Core Deposit and Customer List Intangibles | ||
2020 | 507 | |
2021 | 507 | |
2022 | 507 | |
2023 | 483 | |
2024 | 449 | |
Thereafter | 1,419 | |
Net book value | 3,872 | $ 4,379 |
Mortgage Servicing Rights [Member] | ||
Core Deposit and Customer List Intangibles | ||
2020 | 1,048 | |
2021 | 865 | |
2022 | 865 | |
2023 | 835 | |
2024 | 503 | |
Thereafter | 1,803 | |
Net book value | $ 5,919 |
DEPOSITS - Narrative (Details)
DEPOSITS - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
Aggregate amount of time deposits with minimum denomination of $250,000 | $ 91.2 | $ 77.6 |
DEPOSITS - Maturities of time d
DEPOSITS - Maturities of time deposits (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Deposits [Abstract] | |
2020 | $ 317,693 |
2021 | 114,728 |
2022 | 50,949 |
2023 | 45,040 |
2024 | 19,773 |
Thereafter | 2,374 |
Total time deposits | $ 550,557 |
SHORT AND LONG-TERM BORROWING_2
SHORT AND LONG-TERM BORROWINGS - Narrative (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2015 | Dec. 31, 2018 | |
Debt Type [Line Items] | |||
Trust preferred securities qualify as Tier 1 capital | $ 29,400,000 | $ 28,900,000 | |
Par | $ 38,249,000 | ||
FHLB advances | |||
Debt Type [Line Items] | |||
Weighted average rate of FHLB advances | 1.57% | 1.72% | |
FHLB advances collateralized pledged | $ 273,500,000 | $ 295,300,000 | |
Subordinated Notes | |||
Debt Type [Line Items] | |||
Par | $ 12,000,000 | ||
Subordinated notes, maturity period | 10 years | ||
Subordinated Borrowing, Interest Rate | 5.00% | ||
Nicolet Bankshares, Inc | Line of Credit | |||
Debt Type [Line Items] | |||
Line of credit with third party bank | $ 10,000,000 | ||
Basis spread rate | 2.25% | ||
Floor rate | 3.25% | ||
Long-term line of credit outstanding | $ 0 | $ 0 |
SHORT AND LONG-TERM BORROWING_3
SHORT AND LONG-TERM BORROWINGS - Long-term debt instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 67,629 | $ 77,305 |
FHLB advances | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 25,061 | 35,252 |
Junior subordinated debentures | ||
Debt Instrument [Line Items] | ||
Subordinated notes | 30,575 | 30,096 |
Subordinated notes | ||
Debt Instrument [Line Items] | ||
Subordinated notes | $ 11,993 | $ 11,957 |
SHORT AND LONG-TERM BORROWING_4
SHORT AND LONG-TERM BORROWINGS - Summary of maturity of notes payable (Details) - FHLB advances $ in Thousands | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |
2020 | $ 10,061 |
2021 | 10,000 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 5,000 |
Advances from Federal Home Loan Banks | $ 25,061 |
SHORT AND LONG-TERM BORROWING_5
SHORT AND LONG-TERM BORROWINGS - Junior Subordinated Debentures (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Par | $ 38,249 | |
Unamortized discount | (7,674) | |
Carrying Value | 30,575 | $ 30,096 |
2005 Mid-Wisconsin Financial Services, Inc. | ||
Debt Instrument [Line Items] | ||
Par | 10,310 | |
Unamortized discount | (3,172) | |
Carrying Value | $ 7,138 | $ 6,939 |
Interest rate at period end | 3.32% | 4.22% |
2006 Baylake Corp. | ||
Debt Instrument [Line Items] | ||
Par | $ 16,598 | |
Unamortized discount | (3,883) | |
Carrying Value | $ 12,715 | $ 12,478 |
Interest rate at period end | 3.31% | 4.15% |
2004 First Menasha Bancshares, Inc. | ||
Debt Instrument [Line Items] | ||
Par | $ 5,155 | |
Unamortized discount | (619) | |
Carrying Value | $ 4,536 | $ 4,493 |
Interest rate at period end | 4.69% | 5.58% |
2004 Nicolet Bankshares Statutory Trust | ||
Debt Instrument [Line Items] | ||
Par | $ 6,186 | |
Unamortized discount | 0 | |
Carrying Value | $ 6,186 | $ 6,186 |
Interest rate at period end | 8.00% | |
London Interbank Offered Rate (LIBOR) | 2005 Mid-Wisconsin Financial Services, Inc. | ||
Debt Instrument [Line Items] | ||
Basis spread rate | 1.43% | |
London Interbank Offered Rate (LIBOR) | 2006 Baylake Corp. | ||
Debt Instrument [Line Items] | ||
Basis spread rate | 1.35% | |
London Interbank Offered Rate (LIBOR) | 2004 First Menasha Bancshares, Inc. | ||
Debt Instrument [Line Items] | ||
Basis spread rate | 2.79% |
EMPLOYEE AND DIRECTOR BENEFIT_2
EMPLOYEE AND DIRECTOR BENEFIT PLANS - Narrative (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)Planshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($) | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Number of deferred compensation plans | Plan | 2 | ||
Employees contribution | 100.00% | ||
Employer contribution matching percent | 100.00% | ||
Percentage of employee's gross pay | 6.00% | ||
Vesting period | 5 years | ||
Company 401k expense | $ 2,900 | $ 1,800 | $ 2,000 |
Profit sharing contribution | 1,100 | $ 500 | |
Deferred compensation plan | Key Management Employees | Other liabilities | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Liability for cumulative employee contributions and earnings | 906 | 527 | |
Non elective contributions to selected recipients | $ 1,800 | $ 175 | |
Deferred compensation plan | Director | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Maximum percentage to defer the compensation under the plan | 100.00% | ||
Number of shares purchased under deferred compensation plan | shares | 3,769 | 3,889 | |
Value of shares purchased under deferred compensation plan | $ 220 | $ 213 | |
Value of shares distributed under director plan | $ 33 | $ 32 | |
Number of shares distributed under director plan | shares | 672 | 600 | |
Deferred compensation liability offsetting equity component | $ 1,030 | $ 831 | |
Deferred compensation liability offsetting equity component (in shares) | shares | 29,202 | 26,105 | |
Minimum | Deferred compensation plan | Key Management Employees | Other liabilities | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Vesting period from date of grant | 4 years | ||
Maximum | Deferred compensation plan | Key Management Employees | Other liabilities | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Vesting period from date of grant | 5 years |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period of options | 10 years | ||
Number of shares surrendered (in shares) | 142,752 | 6,411 | 85,422 |
Numbers of shares surrendered (in shares) | 4,688 | 3,948 | 5,266 |
Stock based compensation expense | $ 4.8 | $ 4.7 | $ 3.1 |
Unrecognized compensation cost | $ 13.1 | ||
Remaining vesting period over which cost expected to be recognized | 3 years | ||
Stock based compensation tax benefit | $ 2.3 | 0.2 | |
2011 Long Term Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares initially covered under the plan | 3,000,000 | ||
Number of shares were available for grant | 1,400,000 | ||
2002 Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares initially covered under the plan | 1,175,000 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total intrinsic value of options exercised | $ 13.9 | 2.2 | $ 7.5 |
Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ 0.3 | $ 0.2 | |
Restricted stock grant | 4,257 | 3,510 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summery weighted average assumptions (Details) - Stock Incentive Plan - Stock Options - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 25.00% | 25.00% | 25.00% |
Risk-free interest rate | 1.75% | 2.61% | 2.14% |
Expected average life | 7 years | 7 years | 7 years |
Weighted average per share fair value of options (in dollars per share) | $ 21.30 | $ 17.36 | $ 15.80 |
STOCK-BASED COMPENSATION- Activ
STOCK-BASED COMPENSATION- Activity of stock incentive plans for options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Options Shares Outstanding | |||
Forfeited | (142,752) | (6,411) | (85,422) |
Stock Incentive Plan | Stock Options | |||
Options Shares Outstanding | |||
Outstanding, beginning of period | 1,581,699 | 1,643,255 | 922,026 |
Granted | 203,000 | 15,500 | 949,500 |
Exercise of stock options | (337,428) | (70,556) | (209,371) |
Forfeited | (3,538) | (6,500) | (18,900) |
Outstanding, ending of period | 1,443,733 | 1,581,699 | 1,643,255 |
Exercisable | 561,633 | ||
Weighted-Average Exercise Price | |||
Outstanding | $ 40.77 | $ 39.82 | $ 24.39 |
Granted | 69.69 | 52.76 | 49.93 |
Exercise of stock options | 24.15 | 21.52 | 18.15 |
Forfeited | 27.43 | 39.43 | 35.36 |
Outstanding | 48.75 | $ 40.77 | $ 39.82 |
Exercisable Shares | $ 42.91 | ||
Outstanding Shares, Weighted Average Remaining Life (in years) | 7 years 4 months 20 days | 7 years 4 months 17 days | 8 years 1 month 6 days |
Exercisable Shares, Weighted Average Remaining Life (in years) | 6 years 8 months 15 days | ||
Outstanding Shares, Aggregate Intrinsic Value | $ 36,428 | $ 13,825 | $ 24,525 |
Exercisable Shares, Aggregate Intrinsic Value | $ 17,384 |
STOCK-BASED COMPENSATION - Sche
STOCK-BASED COMPENSATION - Schedule of options outstanding (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of shares outstanding | shares | 1,443,733 |
Number of shares exercisable | shares | 561,633 |
Weighted average exercise price outstanding | $ 48.75 |
Weighted average exercise price exercisable | $ 42.91 |
Weighted average remaining life (years) outstanding | 7 years 4 months 20 days |
Weighted average remaining life (years) exercisable | 6 years 8 months 15 days |
Exercise Price $13.73 - $30.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of shares outstanding | shares | 130,436 |
Number of shares exercisable | shares | 94,936 |
Weighted average exercise price outstanding | $ 22.37 |
Weighted average exercise price exercisable | $ 21.85 |
Weighted average remaining life (years) outstanding | 4 years 2 months 12 days |
Weighted average remaining life (years) exercisable | 4 years 1 month 9 days |
Exercise Price $30.01 - $40.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of shares outstanding | shares | 155,747 |
Number of shares exercisable | shares | 89,747 |
Weighted average exercise price outstanding | $ 35.92 |
Weighted average exercise price exercisable | $ 35.51 |
Weighted average remaining life (years) outstanding | 6 years 5 months 4 days |
Weighted average remaining life (years) exercisable | 6 years 4 months 6 days |
Exercise Price $40.01 - $50.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of shares outstanding | shares | 804,050 |
Number of shares exercisable | shares | 319,850 |
Weighted average exercise price outstanding | $ 48.86 |
Weighted average exercise price exercisable | $ 48.86 |
Weighted average remaining life (years) outstanding | 7 years 4 months 17 days |
Weighted average remaining life (years) exercisable | 7 years 4 months 17 days |
Exercise Price $50.01 - $60.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of shares outstanding | shares | 155,500 |
Number of shares exercisable | shares | 57,100 |
Weighted average exercise price outstanding | $ 56.09 |
Weighted average exercise price exercisable | $ 56.23 |
Weighted average remaining life (years) outstanding | 7 years 11 months 8 days |
Weighted average remaining life (years) exercisable | 7 years 10 months 13 days |
Exercise Price $60.01- $70.50 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of shares outstanding | shares | 198,000 |
Number of shares exercisable | shares | 0 |
Weighted average exercise price outstanding | $ 70.01 |
Weighted average exercise price exercisable | $ 0 |
Weighted average remaining life (years) outstanding | 9 years 10 months 13 days |
Weighted average remaining life (years) exercisable | 0 days |
Minimum | Exercise Price $13.73 - $30.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted average exercise price outstanding | $ 13.73 |
Weighted average exercise price exercisable | 13.73 |
Minimum | Exercise Price $30.01 - $40.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted average exercise price outstanding | 30.01 |
Weighted average exercise price exercisable | 30.01 |
Minimum | Exercise Price $40.01 - $50.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted average exercise price outstanding | 40.01 |
Weighted average exercise price exercisable | 40.01 |
Minimum | Exercise Price $50.01 - $60.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted average exercise price outstanding | 50.01 |
Weighted average exercise price exercisable | 50.01 |
Minimum | Exercise Price $60.01- $70.50 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted average exercise price outstanding | 60.01 |
Weighted average exercise price exercisable | 60.01 |
Maximum | Exercise Price $13.73 - $30.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted average exercise price outstanding | 30 |
Weighted average exercise price exercisable | 30 |
Maximum | Exercise Price $30.01 - $40.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted average exercise price outstanding | 40 |
Weighted average exercise price exercisable | 40 |
Maximum | Exercise Price $40.01 - $50.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted average exercise price outstanding | 50 |
Weighted average exercise price exercisable | 50 |
Maximum | Exercise Price $50.01 - $60.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted average exercise price outstanding | 60 |
Weighted average exercise price exercisable | 60 |
Maximum | Exercise Price $60.01- $70.50 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted average exercise price outstanding | 70.50 |
Weighted average exercise price exercisable | $ 70.50 |
STOCK-BASED COMPENSATION - Acti
STOCK-BASED COMPENSATION - Activity of restricted stock awards (Details) - Restricted Stock - $ / shares | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted-Average Grant Date Fair Value | ||||
Outstanding, beginning of period | $ 39.37 | $ 34.26 | $ 26.80 | |
Granted | 67.59 | 52.55 | 57.75 | |
Vested | 51.77 | 43.58 | 29.87 | |
Forfeited | 16.50 | 16.50 | 16.50 | |
Outstanding, end of period | $ 44.94 | $ 39.37 | $ 34.26 | |
Stock Incentive Plan | ||||
Restricted Shares Outstanding | ||||
Outstanding, beginning of period | 22,521 | 29,512 | 30,920 | 42,949 |
Granted | 12,498 | 18,256 | 9,240 | |
Vested | (19,081) | (19,661) | (20,514) | |
Forfeited | (408) | (3) | (755) | |
Outstanding, end of period | 22,521 | 29,512 | 30,920 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) | Nov. 08, 2019 | Apr. 28, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Stock Transaction [Line Items] | |||||
Cumulative amount repurchased | $ 65,000,000 | ||||
Cumulative shares repurchased (in shares) | 1,400,000 | ||||
Stock repurchase amount | $ 21,000,000 | ||||
Common stock issued in acquisitions | 79,797,000 | $ 0 | $ 62,246,000 | ||
Merger Agreement | Choice Bancorp Inc. | |||||
Stock Transaction [Line Items] | |||||
Number of common stock issued for consideration | 1,184,102 | ||||
Common stock issued in acquisitions | $ 79,800,000 | ||||
Value of cash consideration | 1,700,000 | ||||
Costs incurred related to stock issuance | $ 200,000 | ||||
Merger Agreement | First Menasha | |||||
Stock Transaction [Line Items] | |||||
Number of common stock issued for consideration | 1,309,885 | ||||
Common stock issued in acquisitions | $ 62,200,000 | ||||
Value of cash consideration | 19,300,000 | ||||
Costs incurred related to stock issuance | $ 200,000 | ||||
Common stock repurchase program | |||||
Stock Transaction [Line Items] | |||||
Value of shares authorized to repurchased | $ 86,000,000 | ||||
Shares authorized to repurchased | 1,975,000 | ||||
Stock repurchased under plan | $ 18,700,000 | ||||
Number of shares cancelled under plan (in shares) | 310,800 | ||||
Weighted average price of share cancelled | $ 60.17 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Additional Tax information [Line Items] | |||
Adjustment to the net deferred tax asset for the Tax Cuts and Jobs Act | $ 0 | $ 0 | $ 885,000 |
Valuation allowance | 0 | $ 0 | |
Federal | |||
Additional Tax information [Line Items] | |||
Operating loss carryforwards | 3,700,000 | ||
State | |||
Additional Tax information [Line Items] | |||
Operating loss carryforwards | $ 24,700,000 |
INCOME TAXES - Current and defe
INCOME TAXES - Current and deferred amounts of income tax expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Current | $ 15,353 | $ 14,967 | $ 10,952 |
Deferred | 1,105 | (1,521) | 4,430 |
Adjustment to the net deferred tax asset for the Tax Cuts and Jobs Act | 0 | 0 | 885 |
Income tax expense | $ 16,458 | $ 13,446 | $ 16,267 |
INCOME TAXES - Differences betw
INCOME TAXES - Differences between income tax expense recognized and amount computed by applying statutory federal income tax rate to earnings before income taxes, less noncontrolling interest (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Tax on pretax income, less noncontrolling interest, at statutory rates | $ 14,931 | $ 11,441 | $ 17,296 |
State income taxes, net of federal effect | 3,672 | 3,308 | 2,242 |
Tax-exempt interest income | (609) | (574) | (1,073) |
Non-deductible interest disallowance | 29 | 30 | 28 |
Increase in cash surrender value life insurance | (573) | (508) | (807) |
Non-deductible business entertainment | 189 | 156 | 168 |
Stock-based employee compensation | (2,347) | (232) | (62) |
Non-deductible compensation | 3,122 | 0 | 0 |
Stock-based employee compensation | 0 | 0 | (1,854) |
Adjustment to the net deferred tax asset for the Tax Cuts and Jobs Act | 0 | 0 | 885 |
Sale of UFS | (2,176) | 0 | 0 |
Other, net | 220 | (175) | (556) |
Income tax expense | $ 16,458 | $ 13,446 | $ 16,267 |
INCOME TAXES - Net deferred tax
INCOME TAXES - Net deferred tax asset includes amounts of deferred tax assets and liabilities (Details 2) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
ALLL | $ 4,985 | $ 5,240 |
Net operating loss carryforwards | 1,808 | 2,202 |
Credit carryforwards | 43 | 43 |
Compensation | 3,477 | 2,408 |
Other | 2,830 | 2,549 |
Other real estate | 201 | 103 |
Unrealized loss on securities AFS | 0 | 1,740 |
Total deferred tax assets | 13,344 | 14,285 |
Deferred tax liabilities: | ||
Premises and equipment | (1,390) | (821) |
Prepaid expenses | (778) | (693) |
Investment securities | (755) | (1,723) |
Core deposit and other intangibles | (2,836) | (3,563) |
Purchase accounting adjustments to liabilities | (2,375) | (2,011) |
Other | (1,391) | (1,021) |
Unrealized gain on securities AFS | 1,879 | 0 |
Total deferred tax liabilities | (11,404) | (9,832) |
Net deferred tax assets | $ 1,940 | $ 4,453 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
Commercial-related commitments to extend credit | 74.00% | 77.00% |
Federal funds accommodations | $ 175 | $ 175 |
Interest Rate Lock Commitments | ||
Derivative [Line Items] | ||
Commitments to sell residential mortgage loans held for sale considered derivative instruments | 43.4 | |
Forward Commitments | ||
Derivative [Line Items] | ||
Commitments to sell residential mortgage loans held for sale considered derivative instruments | $ 16.3 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Contract or notional amount of exposure to off-balance-sheet risk (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Contract and notional amounts of commitments | $ 773,555 | $ 721,098 |
Financial standby letters of credit | ||
Other Commitments [Line Items] | ||
Contract and notional amounts of commitments | 10,730 | 8,571 |
Performance standby letters of credit | ||
Other Commitments [Line Items] | ||
Contract and notional amounts of commitments | $ 8,469 | $ 7,094 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Detail Textuals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Related party loans, total | $ 86,000,000 | $ 84,000,000 | |
Cumulative amount repurchased | 65,000,000 | ||
Rent expense | $ 1,200,000 | 1,400,000 | $ 1,100,000 |
Nicolet Joint Ventures, LLC (the "JV") | |||
Related Party Transaction [Line Items] | |||
Percentage of Nicolet National Bank | 50.00% | ||
Director | |||
Related Party Transaction [Line Items] | |||
Stock repurchased | 33,993 | ||
Cumulative amount repurchased | $ 2,200,000 | ||
Average cost per share | 64.02 | ||
Director | New branch location in facility opened in October 2013 | |||
Related Party Transaction [Line Items] | |||
Estimated, but not paid in full, total payments for capital improvements | $ 1,300,000 | ||
Payments for branch reconstruction | $ 400,000 | $ 1,000,000 | |
Percentage payments for branch reconstruction paid to subcontractor | 75.00% | 75.00% | |
Director | New branch location in facility opened in October 2013 | Maximum | |||
Related Party Transaction [Line Items] | |||
Rent expense | $ 120,000 | $ 120,000 | 120,000 |
Management | |||
Related Party Transaction [Line Items] | |||
Stock repurchased | 32,415 | ||
Cumulative amount repurchased | $ 2,200,000 | ||
Average cost per share | 69.21 | ||
Management | Lease agreement for a non-branch location owned by a relative of a senior management team member and paid approximately | |||
Related Party Transaction [Line Items] | |||
Rent expense | 138,000 | 138,000,000 | |
Rent expense | $ 47,500 | ||
Relative of the management | |||
Related Party Transaction [Line Items] | |||
Payment for services | 650,000 | 657,000 | 668,000 |
Relative of the senior management team member | |||
Related Party Transaction [Line Items] | |||
Payment for services | 288,000 | 284,000 | 257,000 |
Nicolet national bank | Nicolet Joint Ventures, LLC (the "JV") | |||
Related Party Transaction [Line Items] | |||
Rent expense | $ 1,200,000 | $ 1,100,000 | $ 1,100,000 |
ASSETS GAINS (LOSSES), NET - Co
ASSETS GAINS (LOSSES), NET - Components of gain (loss) on sale, disposals and writedown of assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |||
Gains (losses) on sales of securities AFS, net | $ (22) | $ (212) | $ 1,220 |
Gains (losses) on equity securities, net | 1,115 | 77 | 0 |
Gains (losses) on sales of OREO, net | (88) | 1,032 | 258 |
Write-downs of OREO | (300) | (120) | (127) |
Write-down of other investment | (100) | 0 | 0 |
Gains (losses) on sales of other investments, net | 7,442 | 187 | 0 |
Gains (losses) on sales or dispositions of other assets, net | (150) | 205 | 678 |
Asset gains (losses), net | $ 7,897 | $ 1,169 | $ 2,029 |
REGULATORY CAPITAL REQUIREMEN_3
REGULATORY CAPITAL REQUIREMENTS - Company's and Bank's actual regulatory capital amounts and ratios (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Allowable amount of dividends before regulatory approval required | $ 6,000 | |
Nicolet Bankshares, Inc | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total risk-based capital, Actual amount | $ 404,573 | $ 326,235 |
Total risk-based capital, Actual ratio | 13.40% | 12.90% |
Total risk-based capital, For capital adequacy purposes, Actual Amount | $ 241,333 | $ 202,836 |
Total risk-based capital, For capital adequacy purposes, Actual Ratio | 8.00% | 8.00% |
Tier I risk-based capital, Actual amount | $ 378,608 | $ 301,125 |
Tier I risk-based capital, Actual ratio | 12.60% | 11.90% |
Tier I risk-based capital, For capital adequacy purposes, Actual Amount | $ 181,000 | $ 152,127 |
Tier I risk-based capital, For capital adequacy purposes, Actual Ratio | 6.00% | 6.00% |
Common equity Tier 1 capital, Actual Amount | $ 348,454 | $ 271,435 |
Common equity Tier 1 capital, Actual Ratio | 11.60% | 10.70% |
Common equity Tier 1 capital, For Capital Adequacy Purposes, Actual Amount | $ 135,750 | $ 114,095 |
Common equity Tier 1 capital, For Capital Adequacy Purposes, Actual Ratio | 4.50% | 4.50% |
Leverage, Actual amount | $ 378,608 | $ 301,125 |
Leverage, Actual ratio | 11.90% | 10.40% |
Leverage, For capital adequacy purposes, Actual Amount | $ 127,036 | $ 115,483 |
Leverage, For capital adequacy purposes, Actual Ratio | 4.00% | 4.00% |
Nicolet national bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total risk-based capital, Actual amount | $ 323,432 | $ 274,492 |
Total risk-based capital, Actual ratio | 10.80% | 10.80% |
Total risk-based capital, For capital adequacy purposes, Actual Amount | $ 240,551 | $ 202,800 |
Total risk-based capital, For capital adequacy purposes, Actual Ratio | 8.00% | 8.00% |
Total risk-based capital, To be well capitalized under prompt corrective action provisions, Actual Amount | $ 300,688 | $ 253,501 |
Total risk-based capital, To be well capitalized under prompt corrective action provisions, Actual Ratio | 10.00% | 10.00% |
Tier I risk-based capital, Actual amount | $ 309,460 | $ 261,339 |
Tier I risk-based capital, Actual ratio | 10.30% | 10.30% |
Tier I risk-based capital, For capital adequacy purposes, Actual Amount | $ 180,413 | $ 152,100 |
Tier I risk-based capital, For capital adequacy purposes, Actual Ratio | 6.00% | 6.00% |
Tier I risk-based capital, To be well capitalized under prompt corrective action provisions, Actual Amount | $ 240,551 | $ 202,800 |
Tier I risk-based capital, To be well capitalized under prompt corrective action provisions, Actual Ratio | 8.00% | 8.00% |
Common equity Tier 1 capital, Actual Amount | $ 309,460 | $ 261,339 |
Common equity Tier 1 capital, Actual Ratio | 10.30% | 10.30% |
Common equity Tier 1 capital, For Capital Adequacy Purposes, Actual Amount | $ 135,310 | $ 114,075 |
Common equity Tier 1 capital, For Capital Adequacy Purposes, Actual Ratio | 4.50% | 4.50% |
Common equity Tier 1 capital, To Be Well Capitalized Under Prompt Corrective Action Provisions, Actual Amount | $ 195,447 | $ 164,775 |
Common equity Tier 1 capital, To be well capitalized under prompt corrective action provisions ratio, Actual Ratio | 6.50% | 6.50% |
Leverage, Actual amount | $ 309,460 | $ 261,339 |
Leverage, Actual ratio | 9.80% | 9.10% |
Leverage, For capital adequacy purposes, Actual Amount | $ 126,660 | $ 115,280 |
Leverage, For capital adequacy purposes, Actual Ratio | 4.00% | 4.00% |
Leverage, To be well capitalized under prompt corrective action provisions, Actual Amount | $ 158,325 | $ 144,100 |
Leverage, To be well capitalized under prompt corrective action provisions, Actual Ratio | 5.00% | 5.00% |
FAIR VALUE MEASUREMENTS - Measu
FAIR VALUE MEASUREMENTS - Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale (“AFS”), at fair value | $ 449,302 | $ 400,144 |
Total | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale (“AFS”), at fair value | 449,302 | 400,144 |
Level 1 | Total | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale (“AFS”), at fair value | 0 | 0 |
Level 2 | Total | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale (“AFS”), at fair value | 446,172 | 391,654 |
Level 3 | Total | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale (“AFS”), at fair value | 3,130 | 8,490 |
Measured at Fair Value on a Recurring Basis | Total | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale (“AFS”), at fair value | 449,302 | 400,144 |
Measured at Fair Value on a Recurring Basis | Total | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale (“AFS”), at fair value | 16,460 | 21,649 |
Measured at Fair Value on a Recurring Basis | Total | State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale (“AFS”), at fair value | 156,393 | 160,526 |
Measured at Fair Value on a Recurring Basis | Total | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale (“AFS”), at fair value | 195,018 | 131,644 |
Measured at Fair Value on a Recurring Basis | Total | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale (“AFS”), at fair value | 81,431 | 86,325 |
Measured at Fair Value on a Recurring Basis | Level 1 | Total | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale (“AFS”), at fair value | 0 | 0 |
Measured at Fair Value on a Recurring Basis | Level 1 | Total | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale (“AFS”), at fair value | 0 | 0 |
Measured at Fair Value on a Recurring Basis | Level 1 | Total | State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale (“AFS”), at fair value | 0 | 0 |
Measured at Fair Value on a Recurring Basis | Level 1 | Total | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale (“AFS”), at fair value | 0 | 0 |
Measured at Fair Value on a Recurring Basis | Level 1 | Total | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale (“AFS”), at fair value | 0 | 0 |
Measured at Fair Value on a Recurring Basis | Level 2 | Total | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale (“AFS”), at fair value | 446,172 | 391,654 |
Measured at Fair Value on a Recurring Basis | Level 2 | Total | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale (“AFS”), at fair value | 16,460 | 21,649 |
Measured at Fair Value on a Recurring Basis | Level 2 | Total | State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale (“AFS”), at fair value | 156,393 | 160,460 |
Measured at Fair Value on a Recurring Basis | Level 2 | Total | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale (“AFS”), at fair value | 195,018 | 131,644 |
Measured at Fair Value on a Recurring Basis | Level 2 | Total | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale (“AFS”), at fair value | 78,301 | 77,901 |
Measured at Fair Value on a Recurring Basis | Level 3 | Total | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale (“AFS”), at fair value | 3,130 | 8,490 |
Measured at Fair Value on a Recurring Basis | Level 3 | Total | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale (“AFS”), at fair value | 0 | 0 |
Measured at Fair Value on a Recurring Basis | Level 3 | Total | State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale (“AFS”), at fair value | 0 | 66 |
Measured at Fair Value on a Recurring Basis | Level 3 | Total | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale (“AFS”), at fair value | 0 | 0 |
Measured at Fair Value on a Recurring Basis | Level 3 | Total | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale (“AFS”), at fair value | 3,130 | 8,424 |
Equity securities | Measured at Fair Value on a Recurring Basis | Total | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, FV-NI | 3,375 | 2,650 |
Equity securities | Measured at Fair Value on a Recurring Basis | Level 1 | Total | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, FV-NI | 3,375 | 2,650 |
Equity securities | Measured at Fair Value on a Recurring Basis | Level 2 | Total | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, FV-NI | 0 | 0 |
Equity securities | Measured at Fair Value on a Recurring Basis | Level 3 | Total | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, FV-NI | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Chang
FAIR VALUE MEASUREMENTS - Changes in Level 3 assets (Details) - Level 3 - Fair Value, Measurements, Recurring - Securities AFS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Level 3 Fair Value Measurements: | ||
Balance at beginning of year | $ 8,490 | $ 9,151 |
Acquired balances | 300 | 0 |
Paydowns/Sales/Settlements | (5,660) | (661) |
Balance at end of year | $ 3,130 | $ 8,490 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair value on a nonrecurring basis (Details) - Measured at Fair Value on a Nonrecurring Basis - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 16,150 | $ 9,939 |
OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 1,000 | 420 |
MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 8,420 | 6,347 |
Level 1 | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Level 1 | OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Level 1 | MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Level 2 | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Level 2 | OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Level 2 | MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Level 3 | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 16,150 | 9,939 |
Level 3 | OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 1,000 | 420 |
Level 3 | MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 8,420 | $ 6,347 |
FAIR VALUE MEASUREMENTS - Finan
FAIR VALUE MEASUREMENTS - Financial instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets: | ||
Securities available for sale (“AFS”), at fair value | $ 449,302 | $ 400,144 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 182,059 | 249,526 |
Certificates of deposit in other banks | 19,305 | 993 |
Securities available for sale (“AFS”), at fair value | 449,302 | 400,144 |
Other investments | 24,072 | 17,997 |
Loans held for sale | 2,706 | 1,639 |
Loans, net | 2,559,779 | 2,153,028 |
BOLI | 78,140 | 66,310 |
MSR asset | 5,919 | 3,749 |
Financial liabilities: | ||
Deposits | 2,954,453 | 2,614,138 |
Long-term Debt, Fair Value | 67,629 | 77,305 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 182,059 | 249,526 |
Certificates of deposit in other banks | 19,310 | 993 |
Securities available for sale (“AFS”), at fair value | 449,302 | 400,144 |
Other investments | 24,072 | 17,997 |
Loans held for sale | 2,753 | 1,662 |
Loans, net | 2,593,110 | 2,139,322 |
BOLI | 78,140 | 66,310 |
MSR asset | 8,420 | 6,347 |
Financial liabilities: | ||
Deposits | 2,956,229 | 2,614,995 |
Long-term Debt, Fair Value | 66,816 | 75,923 |
Level 1 | Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 182,059 | 249,526 |
Certificates of deposit in other banks | 0 | 0 |
Securities available for sale (“AFS”), at fair value | 0 | 0 |
Other investments | 3,375 | 2,650 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
BOLI | 78,140 | 66,310 |
MSR asset | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Long-term Debt, Fair Value | 0 | 0 |
Level 2 | Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposit in other banks | 19,310 | 993 |
Securities available for sale (“AFS”), at fair value | 446,172 | 391,654 |
Other investments | 16,759 | 13,189 |
Loans held for sale | 2,753 | 1,662 |
Loans, net | 0 | 0 |
BOLI | 0 | 0 |
MSR asset | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Long-term Debt, Fair Value | 25,075 | 34,907 |
Level 3 | Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposit in other banks | 0 | 0 |
Securities available for sale (“AFS”), at fair value | 3,130 | 8,490 |
Other investments | 3,938 | 2,158 |
Loans held for sale | 0 | 0 |
Loans, net | 2,593,110 | 2,139,322 |
BOLI | 0 | 0 |
MSR asset | 8,420 | 6,347 |
Financial liabilities: | ||
Deposits | 2,956,229 | 2,614,995 |
Long-term Debt, Fair Value | $ 41,741 | $ 41,016 |
PARENT COMPANY ONLY FINANCIAL_3
PARENT COMPANY ONLY FINANCIAL INFORMATION - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | |||
Cash and due from subsidiary | $ 75,433 | $ 85,896 | |
Goodwill | 151,198 | 107,366 | $ 107,366 |
Total assets | 3,577,260 | 3,096,535 | |
Liabilities and Stockholders’ Equity | |||
Junior subordinated debentures | 30,575 | 30,096 | |
Other liabilities | 38,188 | 17,740 | |
Stockholders’ equity | 516,262 | 386,609 | |
Total liabilities, noncontrolling interest and stockholders’ equity | 3,577,260 | 3,096,535 | |
Nicolet Bankshares, Inc | |||
Assets | |||
Cash and due from subsidiary | 70,426 | 45,279 | |
Investments | 6,650 | 4,500 | |
Investments in subsidiaries | 487,644 | 384,839 | |
Goodwill | (3,266) | (3,266) | |
Other assets | 396 | 53 | |
Total assets | 561,850 | 431,405 | |
Liabilities and Stockholders’ Equity | |||
Junior subordinated debentures | 30,575 | 30,096 | |
Subordinated notes | 11,993 | 11,957 | |
Other liabilities | 3,020 | 2,743 | |
Stockholders’ equity | 516,262 | 386,609 | |
Total liabilities, noncontrolling interest and stockholders’ equity | $ 561,850 | $ 431,405 |
PARENT COMPANY ONLY FINANCIAL_4
PARENT COMPANY ONLY FINANCIAL INFORMATION - Statements of Income (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||
Interest income | $ 138,588 | $ 125,537 | $ 109,253 |
Interest expense | 22,510 | 18,889 | 10,511 |
Net interest income | 116,078 | 106,648 | 98,742 |
Income tax benefit | (16,458) | (13,446) | (16,267) |
Net income | 54,988 | 41,353 | 33,433 |
Nicolet Bankshares, Inc | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest income | 55 | 52 | 46 |
Interest expense | 2,936 | 2,844 | 2,415 |
Net interest income | (2,881) | (2,792) | (2,369) |
Dividend income from subsidiaries | 50,363 | 40,775 | 32,000 |
Operating expense | (321) | (364) | (369) |
Gain (loss) on investments, net | 1,015 | 265 | 1,411 |
Income tax benefit | 506 | 305 | 1,329 |
Earnings before equity in undistributed income (loss) of subsidiaries | 48,682 | 38,189 | 32,002 |
Equity in undistributed income (loss) of subsidiaries | 5,959 | 2,847 | 1,148 |
Net income | $ 54,641 | $ 41,036 | $ 33,150 |
PARENT COMPANY ONLY FINANCIAL_5
PARENT COMPANY ONLY FINANCIAL INFORMATION - Statements of Cash Flows (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows From Operating Activities: | |||
Net income attributable to Nicolet Bankshares, Inc. | $ 54,988 | $ 41,353 | $ 33,433 |
Cash Flows From Financing Activities: | |||
Purchase and retirement of common stock | (28,460) | (22,749) | (15,007) |
Proceeds from issuance of common stock, net | 8,742 | 1,800 | 4,030 |
Nicolet Bankshares, Inc | |||
Cash Flows From Operating Activities: | |||
Net income attributable to Nicolet Bankshares, Inc. | 54,641 | 41,036 | 33,150 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Accretion of discounts | 515 | 515 | 501 |
(Gain) loss on investments, net | (1,015) | (265) | (1,411) |
Change in other assets and liabilities, net | (421) | (25) | (1,384) |
Equity in undistributed (income) loss of subsidiaries, net of dividends | (5,959) | (2,847) | (1,148) |
Net cash provided by operating activities | 47,761 | 38,414 | 29,708 |
Cash Flows From Investing Activities: | |||
Proceeds from sale of investments | 0 | 708 | 317 |
Purchases of investments | (2,484) | (920) | 0 |
Net cash paid in business combinations | (412) | 0 | (19,287) |
Net cash used in investing activities | (2,896) | (212) | (18,970) |
Cash Flows From Financing Activities: | |||
Purchase and retirement of common stock | (28,460) | (22,749) | (15,007) |
Proceeds from issuance of common stock, net | 8,742 | 1,800 | 4,030 |
Net cash used in financing activities | (19,718) | (20,949) | (10,977) |
Net increase (decrease) in cash and due from subsidiary | 25,147 | 17,253 | (239) |
Beginning cash and due from subsidiary | 45,279 | 28,026 | 28,265 |
Ending cash and due from subsidiary | $ 70,426 | $ 45,279 | $ 28,026 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Shares excluded from calculation of earnings per common share | 0.1 | 0.1 | 0.1 |
EARNINGS PER COMMON SHARE (De_2
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Net income attributable to Nicolet Bankshares, Inc. | $ 54,641 | $ 41,036 | $ 33,150 |
Weighted average common shares outstanding (in shares) | 9,561,978 | 9,640,258 | 9,439,951 |
Effect of dilutive common stock awards (in shares) | 338,000 | 316,000 | 518,000 |
Diluted weighted average common shares outstanding (in shares) | 9,900,319 | 9,956,353 | 9,958,160 |
Basic earnings per common share (in dollars per share) | $ 5.71 | $ 4.26 | $ 3.51 |
Diluted earnings per common share (in dollars per share) | $ 5.52 | $ 4.12 | $ 3.33 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Subsequent Event [Line Items] | ||||
Assets | $ 3,577,260 | $ 3,096,535 | ||
Deposits | 2,954,453 | 2,614,138 | ||
Equity | 516,990 | $ 387,352 | $ 364,879 | $ 276,365 |
Commerce Financial Holdings, Inc. | ||||
Subsequent Event [Line Items] | ||||
Assets | 713,000 | |||
Loans | 604,000 | |||
Deposits | 610,000 | |||
Equity | $ 66,000 | |||
Percentage of assets represented by acquiree | 0.16 |
Uncategorized Items - ncbs-2019
Label | Element | Value |
Accounting Standards Update 2016-01 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 |
Accounting Standards Update 2016-01 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (937,000) |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 937,000 |