Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 27, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-37700 | |
Entity Registrant Name | NICOLET BANKSHARES, INC | |
Entity Incorporation, State or Country Code | WI | |
Entity Tax Identification Number | 47-0871001 | |
Entity Address, Address Line One | 111 North Washington Street | |
Entity Address, City or Town | Green Bay, | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 54301 | |
City Area Code | (920) | |
Local Phone Number | 430-1400 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | NCBS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 10,417,695 | |
Entity Central Index Key | 0001174850 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 | |
Assets | |||
Cash and due from banks | $ 66,870,000 | $ 75,433,000 | |
Interest-earning deposits | 755,814,000 | 106,626,000 | |
Cash and cash equivalents | 822,684,000 | [1] | 182,059,000 |
Certificates of deposit in other banks | 17,809,000 | 19,305,000 | |
Securities available for sale (“AFS”), at fair value | 510,809,000 | 449,302,000 | |
Other investments | 26,375,000 | 24,072,000 | |
Loans held for sale | 21,832,000 | 2,706,000 | |
Loans | 2,821,501,000 | 2,573,751,000 | |
Allowance for credit losses - loans (“ACL-Loans”) | (29,130,000) | (13,972,000) | |
Loans, net | 2,792,371,000 | 2,559,779,000 | |
Premises and equipment, net | 59,896,000 | 56,469,000 | |
Bank owned life insurance (“BOLI”) | 78,953,000 | 78,140,000 | |
Goodwill and other intangibles, net | 164,094,000 | 165,967,000 | |
Accrued interest receivable and other assets | 46,405,000 | 39,461,000 | |
Total assets | 4,541,228,000 | 3,577,260,000 | |
Liabilities: | |||
Noninterest-bearing demand deposits | 1,087,884,000 | 819,055,000 | |
Interest-bearing deposits | 2,449,921,000 | 2,135,398,000 | |
Total deposits | 3,537,805,000 | 2,954,453,000 | |
Short-term borrowings | 0 | 0 | |
Long-term borrowings | 417,826,000 | 67,629,000 | |
Accrued interest payable and other liabilities | 52,744,000 | 38,188,000 | |
Total liabilities | 4,008,375,000 | 3,060,270,000 | |
Stockholders’ Equity: | |||
Common stock | 104,000 | 106,000 | |
Additional paid-in capital | 301,778,000 | 312,733,000 | |
Retained earnings | 216,863,000 | 199,005,000 | |
Accumulated other comprehensive income (loss) | 13,288,000 | 4,418,000 | |
Total Nicolet Bankshares, Inc. stockholders’ equity | 532,033,000 | 516,262,000 | |
Noncontrolling interest | 820,000 | 728,000 | |
Total stockholders’ equity and noncontrolling interest | 532,853,000 | 516,990,000 | |
Total liabilities, noncontrolling interest and stockholders’ equity | $ 4,541,228,000 | $ 3,577,260,000 | |
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) | 10,424,407 | 10,587,738 | |
Common shares issued (in shares) | 10,443,763 | 10,610,259 | |
[1] | Cash and cash equivalents at June 30, 2020 include restricted cash of $1.9 million pledged as collateral on interest rate swaps and no reserve balance was required with the Federal Reserve Bank. At June 30, 2019, cash and cash equivalents include restricted cash of $950,000 pledged as collateral on interest rate swaps and $5.8 million for the reserve balance required with the Federal Reserve Bank. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest income: | ||||
Loans, including loan fees | $ 33,766 | $ 31,209 | $ 67,544 | $ 61,177 |
Investment securities: | ||||
Taxable | 2,042 | 2,041 | 4,114 | 3,674 |
Tax-exempt | 509 | 522 | 1,000 | 1,071 |
Other interest income | 575 | 798 | 1,237 | 1,807 |
Total interest income | 36,892 | 34,570 | 73,895 | 67,729 |
Interest expense: | ||||
Deposits | 4,455 | 4,730 | 9,412 | 9,507 |
Short-term borrowings | 38 | 0 | 65 | 0 |
Long-term borrowings | 902 | 896 | 1,658 | 1,803 |
Total interest expense | 5,395 | 5,626 | 11,135 | 11,310 |
Net interest income | 31,497 | 28,944 | 62,760 | 56,419 |
Provision for credit losses | 3,000 | 300 | 6,000 | 500 |
Net interest income after provision for credit losses | 28,497 | 28,644 | 56,760 | 55,919 |
Noninterest income: | ||||
Mortgage income, net | 9,963 | 2,059 | 12,290 | 3,262 |
BOLI income | 540 | 880 | 1,243 | 1,339 |
Asset gains (losses), net | (748) | 7,572 | (1,402) | 7,744 |
Other income | 1,487 | 1,624 | 2,008 | 3,108 |
Total noninterest income | 17,471 | 18,560 | 27,056 | 27,746 |
Noninterest expense: | ||||
Personnel | 14,482 | 15,358 | 27,805 | 27,895 |
Occupancy, equipment and office | 4,361 | 3,757 | 8,565 | 7,507 |
Business development and marketing | 2,514 | 1,579 | 3,873 | 2,860 |
Data processing | 2,399 | 2,350 | 4,962 | 4,705 |
Intangibles amortization | 880 | 969 | 1,873 | 2,022 |
Other expense | 3,177 | 1,714 | 4,589 | 3,497 |
Total noninterest expense | 27,813 | 25,727 | 51,667 | 48,486 |
Income before income tax expense | 18,155 | 21,477 | 32,149 | 35,179 |
Income tax expense | 4,576 | 2,833 | 7,897 | 6,185 |
Net income | 13,579 | 18,644 | 24,252 | 28,994 |
Less: Net income attributable to noncontrolling interest | 101 | 95 | 219 | 178 |
Net income attributable to Nicolet Bankshares, Inc. | $ 13,478 | $ 18,549 | $ 24,033 | $ 28,816 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 1.29 | $ 1.98 | $ 2.30 | $ 3.06 |
Diluted (in dollars per share) | $ 1.28 | $ 1.91 | $ 2.25 | $ 2.97 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 10,417,226 | 9,374,348 | 10,466,590 | 9,417,676 |
Diluted (in shares) | 10,519,739 | 9,692,378 | 10,659,318 | 9,710,827 |
Trust services fee income | ||||
Noninterest income: | ||||
Fees and commissions | $ 1,510 | $ 1,569 | $ 3,089 | $ 3,037 |
Brokerage fee income | ||||
Noninterest income: | ||||
Fees and commissions | 2,269 | 2,002 | 4,591 | 3,812 |
Service charges on deposit accounts | ||||
Noninterest income: | ||||
Fees and commissions | 813 | 1,194 | 2,038 | 2,364 |
Card interchange income | ||||
Noninterest income: | ||||
Fees and commissions | $ 1,637 | $ 1,660 | $ 3,199 | $ 3,080 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 13,579 | $ 18,644 | $ 24,252 | $ 28,994 |
Unrealized gains (losses) on securities AFS: | ||||
Net unrealized holding gains (losses) | 7,985 | 4,401 | 12,314 | 12,112 |
Net realized (gains) losses included in income | (164) | (19) | (164) | (32) |
Income tax (expense) benefit | (2,112) | (1,183) | (3,280) | (3,262) |
Total other comprehensive income (loss) | 5,709 | 3,199 | 8,870 | 8,818 |
Comprehensive income | $ 19,288 | $ 21,843 | $ 33,122 | $ 37,812 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non- controlling Interest |
Beginning Balance at Dec. 31, 2018 | $ 387,352 | $ 95 | $ 247,790 | $ 144,364 | $ (5,640) | $ 743 |
Comprehensive income: | ||||||
Net income | 28,994 | 28,816 | 178 | |||
Other comprehensive income (loss) | 8,818 | 8,818 | ||||
Stock-based compensation expense | 2,499 | 2,499 | ||||
Exercise of stock options, net | 3,182 | 2 | 3,180 | |||
Issuance of common stock | 283 | 283 | ||||
Purchase and retirement of common stock | (18,792) | (3) | (18,789) | |||
Distribution to noncontrolling interest | (188) | (188) | ||||
Ending Balance at Jun. 30, 2019 | 412,148 | 94 | 234,963 | 173,180 | 3,178 | 733 |
Beginning Balance at Mar. 31, 2019 | 399,593 | 94 | 244,063 | 154,631 | (21) | 826 |
Comprehensive income: | ||||||
Net income | 18,644 | 18,549 | 95 | |||
Other comprehensive income (loss) | 3,199 | 3,199 | ||||
Stock-based compensation expense | 1,391 | 1,391 | ||||
Exercise of stock options, net | 2,484 | 2 | 2,482 | |||
Issuance of common stock | 135 | 135 | ||||
Purchase and retirement of common stock | (13,110) | (2) | (13,108) | |||
Distribution to noncontrolling interest | (188) | (188) | ||||
Ending Balance at Jun. 30, 2019 | 412,148 | 94 | 234,963 | 173,180 | 3,178 | 733 |
Beginning Balance at Dec. 31, 2019 | 516,990 | 106 | 312,733 | 199,005 | 4,418 | 728 |
Comprehensive income: | ||||||
Net income | 24,252 | 24,033 | 219 | |||
Other comprehensive income (loss) | 8,870 | 8,870 | ||||
Stock-based compensation expense | 2,956 | 2,956 | ||||
Exercise of stock options, net | 954 | 954 | ||||
Issuance of common stock | 334 | 334 | ||||
Purchase and retirement of common stock | (15,201) | (2) | (15,199) | |||
Distribution to noncontrolling interest | (127) | (127) | ||||
Ending Balance at Jun. 30, 2020 | 532,853 | 104 | 301,778 | 216,863 | 13,288 | 820 |
Beginning Balance at Mar. 31, 2020 | 511,740 | 104 | 299,903 | 203,385 | 7,579 | 769 |
Comprehensive income: | ||||||
Net income | 13,579 | 13,478 | 101 | |||
Other comprehensive income (loss) | 5,709 | 5,709 | ||||
Stock-based compensation expense | 1,657 | 1,657 | ||||
Exercise of stock options, net | 103 | 103 | ||||
Issuance of common stock | 119 | 119 | ||||
Purchase and retirement of common stock | (4) | (4) | ||||
Distribution to noncontrolling interest | (50) | (50) | ||||
Ending Balance at Jun. 30, 2020 | $ 532,853 | $ 104 | $ 301,778 | $ 216,863 | $ 13,288 | $ 820 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | ||
Cash Flows From Operating Activities: | |||
Net income | $ 24,252 | $ 28,994 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization, and accretion | 4,954 | 3,194 | |
Provision for credit losses | 6,000 | 500 | |
Increase in cash surrender value of life insurance | (1,058) | (938) | |
Stock-based compensation expense | 2,956 | 2,499 | |
Asset (gains) losses, net | 1,402 | (7,744) | |
Gain on sale of loans held for sale, net | (12,217) | (3,246) | |
Proceeds from sale of loans held for sale | 395,187 | 120,753 | |
Origination of loans held for sale | (404,346) | (121,438) | |
Net change in: | |||
Accrued interest receivable and other assets | (9,328) | (6,595) | |
Accrued interest payable and other liabilities | 12,388 | 3,135 | |
Net cash provided by (used in) operating activities | 20,190 | 19,114 | |
Cash Flows From Investing Activities: | |||
Net (increase) decrease in loans | (245,750) | (34,459) | |
Net (increase) decrease in certificates of deposit in other banks | 1,496 | (4,403) | |
Purchases of securities AFS | (94,380) | (29,087) | |
Proceeds from sales of securities AFS | 9,232 | 13,240 | |
Proceeds from calls and maturities of securities AFS | 40,017 | 23,055 | |
Purchases of other investments | (3,738) | (1,373) | |
Proceeds from sales of other investments | 0 | 17,144 | |
Purchases of BOLI | 0 | (2,000) | |
Proceeds from redemption of BOLI | 245 | 428 | |
Net (increase) decrease in premises and equipment | (6,240) | (3,137) | |
Net (increase) decrease in other real estate and other assets | 0 | 15 | |
Net cash provided by (used in) investing activities | (299,118) | (20,577) | |
Cash Flows From Financing Activities: | |||
Net increase (decrease) in deposits | 583,612 | (77,499) | |
Proceeds from long-term borrowings | 367,841 | 0 | |
Repayments of long-term borrowings | (17,860) | (129) | |
Purchase and retirement of common stock | (15,201) | (18,792) | |
Proceeds from issuance of common stock | 334 | 283 | |
Proceeds from exercise of stock options | 954 | 3,182 | |
Distribution to noncontrolling interest | (127) | (188) | |
Net cash provided by (used in) financing activities | 919,553 | (93,143) | |
Net increase (decrease) in cash and cash equivalents | 640,625 | (94,606) | |
Cash and cash equivalents: | |||
Beginning | 182,059 | 249,526 | |
Ending | [1] | 822,684 | 154,920 |
Supplemental Disclosures of Cash Flow Information: | |||
Cash paid for interest | 12,874 | 11,091 | |
Cash paid for taxes | 0 | 6,340 | |
Capitalized mortgage servicing rights | $ 2,250 | $ 871 | |
[1] | Cash and cash equivalents at June 30, 2020 include restricted cash of $1.9 million pledged as collateral on interest rate swaps and no reserve balance was required with the Federal Reserve Bank. At June 30, 2019, cash and cash equivalents include restricted cash of $950,000 pledged as collateral on interest rate swaps and $5.8 million for the reserve balance required with the Federal Reserve Bank. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Cash Flows [Abstract] | ||
Restricted cash pledged as collateral on interest rate swaps | $ 1,900,000 | $ 950,000 |
Restricted cash and cash equivalents | $ 0 | $ 5,800,000 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation General In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the consolidated balance sheets, statements of income, comprehensive income, changes in stockholders’ equity and cash flows of Nicolet Bankshares, Inc. (the “Company” or “Nicolet”) and its subsidiaries, for the periods presented, and all such adjustments are of a normal recurring nature. All material intercompany transactions and balances have been eliminated. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the entire year. These interim consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission and, therefore, certain information and footnote disclosures normally presented in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been omitted or abbreviated. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Critical Accounting Policies and Estimates Preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future. Estimates are used in accounting for, among other items, the allowance for credit 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 credit losses, the determination and assessment of deferred tax assets and liabilities, and the valuation of loans acquired in acquisition transactions; therefore, these are critical accounting policies. Factors that may cause sensitivity to the aforementioned estimates include but are not limited to: external market factors such as market interest rates and employment rates, changes to operating policies and procedures, changes in applicable banking or tax regulations, and changes to deferred tax estimates. Actual results may ultimately differ from estimates, although management does not generally believe such differences would materially affect the consolidated financial statements in any individual reporting period presented. There have been no material changes or developments with respect to the assumptions or methodologies that the Company uses when applying what management believes are critical accounting policies and developing critical accounting estimates as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, except as disclosed in Updates to Significant Accounting Policies and Recent Accounting Developments Adopted below. Updates to Significant Accounting Policies 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. 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. The Company evaluates securities AFS in unrealized loss positions on a quarterly basis to determine whether the decline in fair value below the amortized costs basis (impairment) is due to credit-related factors or noncredit-related factors. In making this evaluation, management considers the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. Any impairment that is not credit-related is recognized in other comprehensive income, net of related deferred income taxes. Credit-related impairment is recognized as an allowance for credit losses (“ACL”) on the balance sheet based on the amount by which the amortized cost basis exceeds the fair value, with a corresponding charge to net income. Both the ACL and the charge to net income may be reversed if conditions change. However, if the Company intends to sell an impaired AFS security or more likely than not will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount must be recognized in net income with a corresponding adjustment to the security's amortized cost basis rather than through the establishment of an ACL. See Note 5 for additional disclosures on AFS securities. Loans – Originated : Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are carried at their amortized cost basis, which is the unpaid principal balance outstanding, net of deferred loan fees and costs and any direct principal charge-offs. The Company made an accounting policy election to exclude accrued interest from the amortized cost basis of loans and report such accrued interest as part of accrued interest receivable and other assets on the consolidated balance sheets. 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 6 for additional information and disclosures on loans. Loans – Acquired : Loans purchased in acquisition transactions are acquired loans, and are recorded at their estimated fair value at the acquisition date. Prior to January 1, 2020, as described in further detail in the Company’s 2019 Annual Report on Form 10-K, the Company initially classified acquired loans as either purchased 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”). The Company estimated the fair value of PCI loans based on the amount and timing of expected principal, interest and other cash flows for each loan. The excess of the loan’s contractual principal and interest payments over all cash flows expected to be collected at acquisition was considered an amount that should not be accreted. These credit discounts (“nonaccretable marks”) were included in the determination of the initial fair value for acquired loans; therefore, no allowance for credit losses was recorded at the acquisition date. Differences between the estimated fair values and expected cash flows of acquired loans at the acquisition date that were not credit-based (“accretable marks”) were subsequently accreted to interest income over the estimated life of the loans. Subsequent to the acquisition date for PCI loans, increases in cash flows over those expected at the acquisition date resulted in a move of the discount from nonaccretable to accretable, while decreases in expected cash flows after the acquisition date were recognized through the provision for credit losses. Subsequent to January 1, 2020, acquired loans that have evidence of more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. At acquisition, an estimate of expected credit losses is made for PCD loans. This initial allowance for credit losses is allocated to individual PCD loans and added to the purchase price or acquisition date fair value to establish the initial amortized cost basis of the PCD loans. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to noncredit factors, resulting in a discount or premium that is amortized to interest income. For acquired loans not deemed PCD loans at acquisition, the difference between the initial fair value mark and the unpaid principal balance are recognized in interest income over the estimated life of the loans. In addition, an initial allowance for expected credit losses is estimated and recorded as provision expense at the acquisition date. The subsequent measurement of expected credit losses for all acquired loans is the same as the subsequent measurement of expected credit losses for originated loans. See Note 6 for additional information and disclosures on loans. Allowance for Credit Losses - Loans : The ACL-Loans represents management’s estimate of expected credit losses in the Company’s loan portfolio at the balance sheet date. The Company estimates the ACL-Loans based on the amortized cost basis of the underlying loan and has made an accounting policy election to exclude accrued interest from the loan’s amortized cost basis and the related measurement of the ACL-Loans. Estimating the amount of the ACL-Loans 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 nonaccrual loans, and the level of potential problem loans, all of which may be susceptible to significant change. Prior to January 1, 2020, as described in further detail in the Company’s 2019 Annual Report on Form 10-K, the Company used an incurred loss impairment model. This methodology assessed the overall appropriateness of the allowance for credit losses and included 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 were individually assessed and measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price or the fair value of the collateral if the loan was collateral dependent. Loans that were determined not to be impaired were 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 were also provided for certain environmental and other qualitative factors. Subsequent to January 1, 2020, the Company uses a current expected credit loss model (“CECL”). This methodology also considers historical loss rates and other qualitative adjustments, as well as a new forward-looking component that considers reasonable and supportable forecasts over the expected life of each loan. To develop the ACL-Loans estimate under the CECL model, the Company segments the loan portfolio into loan pools based on loan type and similar credit risk elements; performs an individual evaluation of PCD loans; calculates the historical loss rates for the segmented loan pools; applies the loss rates over the calculated life of the pooled loans; adjusts for forecasted macro-level economic conditions; and determines qualitative adjustments based on factors and conditions unique to Nicolet's portfolio. Recent Accounting Developments Adopted In August 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . This ASU modifies the disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. The updated guidance was effective for annual reporting periods, including interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted the updated guidance effective January 1, 2020, with no material impact on its consolidated financial statements as the new ASU only revises disclosure requirements. See Note 9 for fair value disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments intended to improve the financial reporting by requiring earlier recognition of credit losses on loans and certain other financial assets. Topic 326 replaces the incurred loss impairment model (which recognizes losses when a probable threshold is met) with a requirement to recognize lifetime expected credit losses immediately when a financial asset is originated or purchased. The measurement of lifetime expected credit losses is based on historical experience, current conditions, and reasonable and supportable forecasts. The ASU was effective for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted the new accounting standard on January 1, 2020, as required, and recorded a cumulative-effect adjustment of $6 million to retained earnings. See Updates to Significant Accounting Policies above for changes to accounting policies and see Notes 5 and 6 for additional disclosures related to this new accounting pronouncement. Reclassifications Certain amounts in the 2019 consolidated financial statements have been reclassified to conform to the 2020 presentation. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Completed Acquisition: 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 (at 12% of Nicolet’s then pre-merger asset size) 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. Pending Acquisition: Advantage Community Bancshares, Inc. (“Advantage”): On March 2, 2020, Nicolet entered into a definitive merger agreement with Advantage pursuant to which Advantage will merge with and into Nicolet. As of June 30, 2020, Nicolet has received all necessary regulatory approvals, as well as approval from Advantage shareholders. The merger is expected to close August 21, 2020, subject to the closing conditions. Advantage's four branches in Dorcester, Edgar, Mosinee, and Wausau will open as Nicolet branches on August 24, 2020. Due to the small size of the transaction, terms of the all-cash deal were not disclosed. At June 30, 2020, Advantage had total assets of $160 million, loans of $89 million, deposits of $135 million, and equity of $21 million. Terminated Acquisition: |
Earnings per Common Share
Earnings per Common Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Basic earnings per common share are calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share are calculated by dividing net income available to common shareholders by the weighted average number of shares adjusted for the dilutive effect of common stock awards (outstanding stock options and unvested restricted stock), if any. Presented below are the calculations for basic and diluted earnings per common share. Three Months Ended June 30, Six Months Ended June 30, (In thousands, except per share data) 2020 2019 2020 2019 Net income attributable to Nicolet Bankshares, Inc. $ 13,478 $ 18,549 $ 24,033 $ 28,816 Weighted average common shares outstanding 10,417 9,374 10,467 9,418 Effect of dilutive common stock awards 103 318 192 293 Diluted weighted average common shares outstanding 10,520 9,692 10,659 9,711 Basic earnings per common share* $ 1.29 $ 1.98 $ 2.30 $ 3.06 Diluted earnings per common share* $ 1.28 $ 1.91 $ 2.25 $ 2.97 *Cumulative quarterly per share performance may not equal annual per share totals due to the effects of the amount and timing of capital increases. When computing earnings per share for an interim period, the denominator is based on the weighted average shares outstanding during the interim period, and not on an annualized weighted average basis. Accordingly, the sum of the earnings per share data for the quarters will not necessarily equal the year to date earnings per share data. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [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, and at June 30, 2020, approximately 1.4 million shares were available for grant under these stock-based compensation plans. A Black-Scholes model is utilized to estimate the fair value of stock option grants, while the market price of the Company’s stock at the date of grant is used to estimate the fair value of restricted stock awards. The weighted average assumptions used in the Black-Scholes model for valuing stock option grants were as follows. Six Months Ended June 30, 2020 2019 Dividend yield — % — % Expected volatility 25 % 25 % Risk-free interest rate 1.67 % 2.37 % Expected average life 7 years 7 years Weighted average per share fair value of options $ 21.83 $ 19.23 A summary of the Company’s stock option activity is summarized below. Stock Options Option Shares Weighted Weighted Average Aggregate Outstanding - December 31, 2019 1,443,733 $ 48.75 Granted 39,500 71.89 Exercise of stock options * (43,552) 23.07 Forfeited — — Outstanding - June 30, 2020 1,439,681 $ 50.16 7.1 $ 10,601 Exercisable - June 30, 2020 726,931 $ 44.59 6.4 $ 7,527 * The terms of the stock option agreements permit having a number of shares of stock withheld, the fair market value of which as of the date of exercise is sufficient to satisfy the exercise price and/or tax withholding requirements. For the six months ended June 30, 2020, 17,699 such shares were surrendered to the Company. Intrinsic value represents the amount by which the fair market value of the underlying stock exceeds the exercise price of the stock options. The intrinsic value of options exercised for the six months ended June 30, 2020 and 2019 was approximately $1.9 million and $5.0 million, respectively. A summary of the Company’s restricted stock activity is summarized below. Restricted Stock Weighted Average Grant Restricted Shares Outstanding - December 31, 2019 $ 44.94 22,521 Granted 55.52 10,450 Vested * 43.66 (13,615) Forfeited — — Outstanding - June 30, 2020 $ 51.55 19,356 * The terms of the restricted stock agreements permit the surrender of shares to the Company upon vesting in order to satisfy applicable tax withholding requirements at the minimum statutory withholding rate, and accordingly, 1,407 shares were surrendered during the six months ended June 30, 2020. The Company recognized approximately $2.6 million and $2.2 million of stock-based compensation expense (included in personnel on the consolidated statements of income) for the six months ended June 30, 2020 and 2019, respectively, associated with its common stock awards granted to officers and employees. In addition, during first half 2020, the Company recognized approximately $0.4 million of director expense (included in other expense on the consolidated statements of income) for a total restricted stock grant of 7,950 shares with immediate vesting to directors, while during first half 2019, the Company recognized approximately $0.3 million of director expense for a total restricted stock grant of 4,257 shares with immediate vesting to directors, representing the annual stock retainer fee paid to external board members. As of June 30, 2020, there was approximately $11.6 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 $0.3 million and $0.9 million for the six months ended June 30, 2020 and 2019, respectively, for the tax impact of stock option exercises and vesting of restricted stock. |
Securities Available for Sale
Securities Available for Sale | 6 Months Ended |
Jun. 30, 2020 | |
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. June 30, 2020 (in thousands) Amortized Cost Gross Gross Fair Value Fair Value as % of Total U.S. government agency securities $ 63,512 $ 338 $ — $ 63,850 12 % State, county and municipals 162,239 4,261 2 166,498 33 % Mortgage-backed securities 188,819 8,087 10 196,896 39 % Corporate debt securities 78,036 5,529 — 83,565 16 % Total $ 492,606 $ 18,215 $ 12 $ 510,809 100 % December 31, 2019 (in thousands) Amortized Cost Gross Gross Fair Value Fair Value as % of Total U.S. government agency securities $ 16,516 $ 4 $ 60 $ 16,460 4 % State, county and municipals 155,501 1,049 157 156,393 35 % Mortgage-backed securities 193,223 2,492 697 195,018 43 % Corporate debt securities 78,009 3,422 — 81,431 18 % Total $ 443,249 $ 6,967 $ 914 $ 449,302 100 % All mortgage-backed securities included in the table above were issued by U.S. government agencies and corporations. Securities AFS with a fair value of $156 million and $166 million as of June 30, 2020 and December 31, 2019, respectively, were pledged as collateral on public deposits and for other purposes as required or permitted by law. Accrued interest on securities AFS totaled $2.1 million and $2.2 million at June 30, 2020 and December 31, 2019, respectively, and is included in accrued interest receivable and other assets on the consolidated balance sheets. The following table presents gross unrealized losses and the related estimated fair value of securities AFS for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position. June 30, 2020 Less than 12 months 12 months or more Total ($ in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Number of State, county and municipals $ 882 $ 2 $ — $ — $ 882 $ 2 2 Mortgage-backed securities 1,329 1 762 9 2,091 10 23 Total $ 2,211 $ 3 $ 762 $ 9 $ 2,973 $ 12 25 December 31, 2019 Less than 12 months 12 months or more Total ($ in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Number of 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 Total $ 73,112 $ 379 $ 65,967 $ 535 $ 139,079 $ 914 212 The Company evaluates securities AFS in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. In making this evaluation, management considers the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. As of June 30, 2020, no allowance for credit losses on securities AFS was recognized. The Company does not consider its securities AFS with unrealized losses to be attributable to credit-related factors, as the unrealized losses in each category have occurred as a result of changes in noncredit-related factors such as changes in interest rates, market spreads and market conditions subsequent to purchase, not credit deterioration. Furthermore, the Company does not have the intent to sell any of these securities AFS and believes that it is more likely than not that we will not have to sell any such securities before a recovery of cost. During 2019, there were no other-than-temporary impairments charged to earnings. 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. June 30, 2020 (in thousands) Amortized Cost Fair Value Due in less than one year $ 28,148 $ 28,294 Due in one year through five years 217,289 224,722 Due after five years through ten years 42,898 44,561 Due after ten years 15,452 16,336 303,787 313,913 Mortgage-backed securities 188,819 196,896 Securities AFS $ 492,606 $ 510,809 Proceeds and realized gains / losses from the sale of securities AFS were as follows. Six Months Ended June 30, (in thousands) 2020 2019 Gross gains $ 164 $ 152 Gross losses — (120) Gains (losses) on sales of securities AFS, net $ 164 $ 32 Proceeds from sales of securities AFS $ 9,232 $ 13,240 |
Loans, Allowance for Credit Los
Loans, Allowance for Credit Losses - Loans, and Credit Quality | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Loans, Allowance for Credit Losses - Loans, and Credit Quality | Loans, Allowance for Credit Losses - Loans, and Credit Quality The loan composition is summarized as follows. June 30, 2020 December 31, 2019 (in thousands) Amount % of Amount % of Commercial & industrial $ 729,264 26 % $ 806,189 31 % Paycheck Protection Program (“PPP”) loans 329,157 12 — — Owner-occupied commercial real estate (“CRE”) 495,722 17 496,372 19 Agricultural 99,020 3 95,450 4 CRE investment 447,900 16 443,218 17 Construction & land development 107,277 4 92,970 4 Residential construction 51,332 2 54,403 2 Residential first mortgage 417,694 15 432,167 17 Residential junior mortgage 114,323 4 122,771 5 Retail & other 29,812 1 30,211 1 Loans 2,821,501 100 % 2,573,751 100 % Less allowance for credit losses - Loans (“ACL-Loans”) 29,130 13,972 Loans, net $ 2,792,371 $ 2,559,779 Allowance for credit losses - Loans to loans 1.03 % 0.54 % Accrued interest on loans totaled $9 million and $7 million at June 30, 2020 and December 31, 2019, respectively, and is included in accrued interest receivable and other assets on the consolidated balance sheets. See Note 1 for for the Company's accounting policy on accrued interest with respect to loans and the allowance for credit losses. Allowance for Credit Losses-Loans : The majority of the Company’s loans, commitments, and letters of credit have been granted to customers in the Company’s market area. Although the Company has a diversified loan portfolio, the credit risk in the loan portfolio is largely influenced by general economic conditions and trends of the counties and markets in which the debtors operate, and the resulting impact on the operations of borrowers or on the value of underlying collateral, if any. A roll forward of the allowance for credit losses is summarized as follows. Six Months Ended Year Ended (in thousands) June 30, 2020 June 30, 2019 December 31, 2019 Beginning balance $ 13,972 $ 13,153 $ 13,153 Adoption of CECL 8,488 — — Initial PCD ACL 797 — — Total impact for adoption of CECL 9,285 — — Provision for credit losses 6,000 500 1,200 Charge-offs (216) (232) (927) Recoveries 89 150 546 Net (charge-offs) recoveries (127) (82) (381) Ending balance $ 29,130 $ 13,571 $ 13,972 The following table presents the balance and activity in the ACL-Loans by portfolio segment. Six Months Ended June 30, 2020 (in thousands) Commercial Owner- Agricultural CRE Construction & land Residential Residential Residential Retail Total ACL-Loans * Beginning balance $ 5,471 $ 3,010 $ 579 $ 1,600 $ 414 $ 368 $ 1,669 $ 517 $ 344 $ 13,972 Adoption of CECL 2,962 1,249 361 1,970 51 124 1,286 351 134 8,488 Initial PCD ACL 797 — — — — — — — — 797 Provision 1,010 919 399 1,542 325 21 1,348 294 142 6,000 Charge-offs (97) — — (20) — — — — (99) (216) Recoveries 60 — — — — — 4 15 10 89 Net (charge-offs) recoveries (37) — — (20) — — 4 15 (89) (127) Ending balance $ 10,203 $ 5,178 $ 1,339 $ 5,092 $ 790 $ 513 $ 4,307 $ 1,177 $ 531 $ 29,130 As % of ACL-Loans 35 % 18 % 4 % 17 % 3 % 2 % 15 % 4 % 2 % 100 % *The PPP loans are fully guaranteed by the SBA; thus, no ACL-Loans has been allocated to these loans. For comparison purposes, the following table presents the balance and activity in the ACL-Loans by portfolio segment for the prior year-end period. Year Ended December 31, 2019 (in thousands) Commercial Owner- Agricultural CRE Construction Residential Residential Residential Retail & ACL-Loans Beginning balance $ 5,271 $ 2,847 $ 422 $ 1,470 $ 510 $ 211 $ 1,646 $ 472 $ 304 $ 13,153 Provision (61) 254 157 130 (96) 383 9 86 338 1,200 Charge-offs (159) (93) — — — (226) (22) (80) (347) (927) Recoveries 420 2 — — — — 36 39 49 546 Net (charge-offs) recoveries 261 (91) — — — (226) 14 (41) (298) (381) Ending balance $ 5,471 $ 3,010 $ 579 $ 1,600 $ 414 $ 368 $ 1,669 $ 517 $ 344 $ 13,972 As % of ACL-Loans 39 % 22 % 4 % 11 % 3 % 3 % 12 % 4 % 2 % 100 % The ACL-Loans at June 30, 2020 was estimated using the current expected credit loss model. See Note 1 for the Company's accounting policy on loans and the allowance for credit losses. The ACL-Loans represents management’s estimate of expected credit losses in the Company’s loan portfolio at the balance sheet date. To assess the appropriateness of the ACL-Loans, an allocation methodology is applied by Nicolet which focuses on evaluation of qualitative and environmental factors, including but not limited to: (i) evaluation of facts and issues related to specific loans; (ii) management’s ongoing review and grading of the loan portfolio; (iii) consideration of historical loan loss and delinquency experience on each portfolio segment; (iv) trends in past due and nonperforming loans; (v) the risk characteristics of the various loan segments; (vi) changes in the size and character of the loan portfolio; (vii) concentrations of loans to specific borrowers or industries; (viii) existing economic conditions; (ix) the fair value of underlying collateral; and (x) other qualitative and quantitative factors which could affect expected credit losses. Assessing these numerous factors involves significant judgment. Management allocates the ACL-Loans by pools of risk within each loan portfolio segment. The allocation methodology consists of the following components. First, a specific reserve is established for individually evaluated credit-deteriorated loans, which management defines as nonaccrual credit relationships over $250,000, all loans determined to be troubled debt restructurings (“restructured loans”), plus other loans with evidence of credit deterioration. The specific reserve in the ACL-Loans for these credit deteriorated loans is equal to the aggregate collateral or discounted cash flow shortfall. Second, management allocates the ACL-Loans with historical loss rates by loan segment. The loss factors are measured on a quarterly basis and applied to each loan segment based on current loan balances and projected for their expected remaining life. Next, management allocates the ACL-Loans using the qualitative factors mentioned above. Consideration is given to those current qualitative or environmental factors that are likely to cause estimated credit losses as of the evaluation date to differ from the historical loss experience of each loan segment. Lastly, management considers reasonable and supportable forecasts to assess the collectability of future cash flows. A loan is considered to be collateral dependent when, based upon management's assessment, the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. For collateral dependent loans, expected credit losses are based on the fair value of the collateral at the balance sheet date, with consideration for estimated selling costs if satisfaction of the loan depends on the sale of the collateral. The following table presents collateral dependent loans by portfolio segment and collateral type, including those loans with and without a related allowance allocation as of June 30, 2020. June 30, 2020 Collateral Type (in thousands) Real Estate Other Business Assets Total Without an Allowance With an Allowance Allowance Allocation Commercial & industrial $ — $ 3,688 $ 3,688 $ — $ 3,688 $ 1,231 PPP loans — — — — — — Owner-occupied CRE 2,524 — 2,524 339 2,185 148 Agricultural 600 835 1,435 1,435 — — CRE investment 975 — 975 975 — — Construction & land development 533 — 533 533 — — Residential construction — — — — — — Residential first mortgage — — — — — — Residential junior mortgage — — — — — — Retail & other — — — — — — Total loans $ 4,632 $ 4,523 $ 9,155 $ 3,282 $ 5,873 $ 1,379 The following table presents impaired loans and their respective allowance for credit loss allocations at December 31, 2019, as determined in accordance with historical accounting guidance. Total Impaired Loans – December 31, 2019 (in thousands) Recorded Unpaid Principal Related Average Recorded Interest Income Commercial & industrial $ 5,932 $ 7,950 $ 625 $ 5,405 $ 1,170 Owner-occupied CRE 3,430 4,016 — 3,677 256 Agricultural 2,134 2,172 116 2,311 37 CRE investment 2,426 2,790 — 2,497 364 Construction & land development 382 382 — 460 — Residential construction — — — — — Residential first mortgage 2,357 2,629 — 2,412 178 Residential junior mortgage 218 349 — 224 58 Retail & other 12 12 — 12 — Total $ 16,891 $ 20,300 $ 741 $ 16,998 $ 2,063 Past Due and Nonaccrual Loans : The following tables present past due loans by portfolio segment. June 30, 2020 (in thousands) 30-89 Days Past 90 Days & Over or nonaccrual Current Total Commercial & industrial $ 162 $ 4,142 $ 724,960 $ 729,264 PPP loans — — 329,157 329,157 Owner-occupied CRE 71 3,005 492,646 495,722 Agricultural 35 1,711 97,274 99,020 CRE investment — 975 446,925 447,900 Construction & land development 196 533 106,548 107,277 Residential construction 549 — 50,783 51,332 Residential first mortgage 354 1,067 416,273 417,694 Residential junior mortgage — 565 113,758 114,323 Retail & other 85 — 29,727 29,812 Total loans $ 1,452 $ 11,998 $ 2,808,051 $ 2,821,501 Percent of total loans 0.1 % 0.4 % 99.5 % 100.0 % December 31, 2019 (in thousands) 30-89 Days Past 90 Days & Over or nonaccrual Current Total Commercial & industrial $ 1,729 $ 6,249 $ 798,211 $ 806,189 Owner-occupied CRE 112 3,311 492,949 496,372 Agricultural — 1,898 93,552 95,450 CRE investment — 1,073 442,145 443,218 Construction & land development 2,063 20 90,887 92,970 Residential construction 302 — 54,101 54,403 Residential first mortgage 2,736 1,090 428,341 432,167 Residential junior mortgage 217 480 122,074 122,771 Retail & other 110 1 30,100 30,211 Total loans $ 7,269 $ 14,122 $ 2,552,360 $ 2,573,751 Percent of total loans 0.3 % 0.5 % 99.2 % 100.0 % The following table presents nonaccrual loans by portfolio segment. The nonaccrual loans without a related allowance for credit losses have been reflected in the collateral dependent loans table above. June 30, 2020 December 31, 2019 (in thousands) Nonaccrual Loans % of Total Nonaccrual Loans % of Total Commercial & industrial $ 4,142 35 % $ 6,249 44 % PPP loans — — — — Owner-occupied CRE 3,005 25 3,311 23 Agricultural 1,711 14 1,898 14 CRE investment 975 8 1,073 8 Construction & land development 533 4 20 — Residential construction — — — — Residential first mortgage 1,067 9 1,090 8 Residential junior mortgage 565 5 480 3 Retail & other — — 1 — Nonaccrual loans $ 11,998 100 % $ 14,122 100 % Percent of total loans 0.4 % 0.5 % Credit Quality Information : The following table presents total loans by risk categories and year of origination. June 30, 2020 Amortized Cost Basis by Origination Year (in thousands) 2020 2019 2018 2017 2016 Prior Revolving Revolving to Term TOTAL Commercial & industrial (a) Grades 1-4 $ 397,577 $ 150,186 $ 109,524 $ 68,689 $ 28,748 $ 58,379 $ 183,671 $ — $ 996,774 Grade 5 229 5,398 7,778 625 1,524 2,777 16,707 — 35,038 Grade 6 51 23 796 5,698 1 35 4,136 — 10,740 Grade 7 1,732 1,215 1,112 1,382 545 6,057 3,826 — 15,869 Total $ 399,589 $ 156,822 $ 119,210 $ 76,394 $ 30,818 $ 67,248 $ 208,340 $ — $ 1,058,421 Owner-occupied CRE Grades 1-4 $ 36,065 $ 67,425 $ 82,360 $ 62,980 $ 49,060 $ 164,982 $ 1,499 $ — $ 464,371 Grade 5 — 574 1,646 6,572 379 7,086 488 — 16,745 Grade 6 — — — 1,736 — 734 — — 2,470 Grade 7 — 337 281 2,189 1,776 7,553 — — 12,136 Total $ 36,065 $ 68,336 $ 84,287 $ 73,477 $ 51,215 $ 180,355 $ 1,987 $ — $ 495,722 Agricultural Grades 1-4 $ 8,766 $ 5,484 $ 7,266 $ 9,697 $ 2,240 $ 29,722 $ 20,775 $ — $ 83,950 Grade 5 20 375 36 573 689 4,772 633 — 7,098 Grade 6 — — — 328 392 — — — 720 Grade 7 — — 34 115 1,200 5,824 79 — 7,252 Total $ 8,786 $ 5,859 $ 7,336 $ 10,713 $ 4,521 $ 40,318 $ 21,487 $ — $ 99,020 CRE investment Grades 1-4 $ 42,819 $ 76,688 $ 41,581 $ 69,179 $ 39,866 $ 158,663 $ 6,303 $ — $ 435,099 Grade 5 — — 106 1,307 388 6,396 45 — 8,242 Grade 6 — 104 — 913 654 — — — 1,671 Grade 7 — — — — 144 2,744 — — 2,888 Total $ 42,819 $ 76,792 $ 41,687 $ 71,399 $ 41,052 $ 167,803 $ 6,348 $ — $ 447,900 Construction & land development Grades 1-4 $ 25,720 $ 40,447 $ 19,330 $ 3,442 $ 2,261 $ 9,282 $ 1,799 $ — $ 102,281 Grade 5 — 219 2,699 45 — 26 — — 2,989 Grade 6 — 1,100 — — — — — — 1,100 Grade 7 — — — — — 907 — — 907 Total $ 25,720 $ 41,766 $ 22,029 $ 3,487 $ 2,261 $ 10,215 $ 1,799 $ — $ 107,277 Residential construction Grades 1-4 $ 14,455 $ 34,545 $ 1,459 $ 351 $ 19 $ 133 $ — $ — $ 50,962 Grade 5 — 314 — 56 — — — — 370 Grade 6 — — — — — — — — — Grade 7 — — — — — — — — — Total $ 14,455 $ 34,859 $ 1,459 $ 407 $ 19 $ 133 $ — $ — $ 51,332 Residential first mortgage Grades 1-4 $ 54,206 $ 71,663 $ 49,497 $ 53,126 $ 52,588 $ 128,667 $ 919 $ — $ 410,666 Grade 5 — 825 1,331 258 760 1,689 — — 4,863 Grade 6 — — — — — — — — — Grade 7 — 656 197 19 65 1,228 — — 2,165 Total $ 54,206 $ 73,144 $ 51,025 $ 53,403 $ 53,413 $ 131,584 $ 919 $ — $ 417,694 Residential junior mortgage Grades 1-4 $ 2,470 $ 5,261 $ 4,799 $ 1,642 $ 1,753 $ 3,203 $ 92,924 $ 1,669 $ 113,721 Grade 5 — — — — — 33 — — 33 Grade 6 — — — — — — — — — Grade 7 — — — 28 — 339 202 — 569 Total $ 2,470 $ 5,261 $ 4,799 $ 1,670 $ 1,753 $ 3,575 $ 93,126 $ 1,669 $ 114,323 Retail & other Grades 1-4 $ 5,090 $ 6,205 $ 2,403 $ 1,869 $ 941 $ 1,522 $ 11,782 $ — $ 29,812 Grade 5 — — — — — — — — — Grade 6 — — — — — — — — — Grade 7 — — — — — — — — — Total $ 5,090 $ 6,205 $ 2,403 $ 1,869 $ 941 $ 1,522 $ 11,782 $ — $ 29,812 Total loans $ 589,200 $ 469,044 $ 334,235 $ 292,819 $ 185,993 $ 602,753 $ 345,788 $ 1,669 $ 2,821,501 (a) For purposes of this table, the $329 million net carrying value of PPP loans were originated in 2020, have a Pass risk grade (Grades 1-4) and have been included with the Commercial & industrial loan category. The following tables present total loans by risk categories. June 30, 2020 (in thousands) Grades 1- 4 Grade 5 Grade 6 Grade 7 Total Commercial & industrial $ 667,617 $ 35,038 $ 10,740 $ 15,869 $ 729,264 PPP loans 329,157 — — — 329,157 Owner-occupied CRE 464,371 16,745 2,470 12,136 495,722 Agricultural 83,950 7,098 720 7,252 99,020 CRE investment 435,099 8,242 1,671 2,888 447,900 Construction & land development 102,281 2,989 1,100 907 107,277 Residential construction 50,962 370 — — 51,332 Residential first mortgage 410,666 4,863 — 2,165 417,694 Residential junior mortgage 113,721 33 — 569 114,323 Retail & other 29,812 — — — 29,812 Total loans $ 2,687,636 $ 75,378 $ 16,701 $ 41,786 $ 2,821,501 Percent of total 95.2 % 2.7 % 0.6 % 1.5 % 100.0 % December 31, 2019 (in thousands) Grades 1- 4 Grade 5 Grade 6 Grade 7 Total Commercial & industrial $ 765,073 $ 20,199 $ 7,663 $ 13,254 $ 806,189 Owner-occupied CRE 464,661 20,855 953 9,903 496,372 Agricultural 77,082 6,785 3,275 8,308 95,450 CRE investment 430,794 8,085 2,578 1,761 443,218 Construction & land development 90,523 2,213 15 219 92,970 Residential construction 53,286 1,117 — — 54,403 Residential first mortgage 424,044 4,677 668 2,778 432,167 Residential junior mortgage 122,249 35 — 487 122,771 Retail & other 30,210 — — 1 30,211 Total loans $ 2,457,922 $ 63,966 $ 15,152 $ 36,711 $ 2,573,751 Percent of total 95.5 % 2.5 % 0.6 % 1.4 % 100.0 % An internal loan review function rates loans using a grading system based on different risk categories. Loans with a Substandard grade are considered to have a greater risk of loss and may be assigned allocations for loss based on specific review of the weaknesses observed in the individual credits. Such loans are constantly monitored by the loan review function to ensure early identification of any deterioration. 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. Troubled Debt Restructurings : At June 30, 2020, there were five loans classified as troubled debt restructurings with a current outstanding balance of $1.1 million and pre-modification balance of $1.7 million. In comparison, at December 31, 2019, there were five loans classified as troubled debt restructurings with an outstanding balance of $1.1 million and pre-modification balance of $1.4 million. There were no loans classified as troubled debt restructurings during the previous twelve months that |
Goodwill and Other Intangibles
Goodwill and Other Intangibles and Mortgage Servicing Rights | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles and Mortgage Servicing Rights | Goodwill and Other Intangibles and Mortgage Servicing Rights Management periodically reviews the carrying value of its intangible assets to determine if any impairment has occurred, in which case an impairment charge would be recorded as an expense in the period of impairment, or whether changes in circumstances have occurred that would require a revision to the remaining useful life which would impact expense prospectively. In making such determination, management evaluates whether there are any adverse qualitative factors indicating that an impairment may exist, as well as the performance, on an undiscounted basis, of the underlying operations or assets which give rise to the intangible. In the first half of 2020, management considered the potential impacts of the COVID-19 pandemic on the valuation of our franchise value, stability of deposits, and of the wealth client base, underlying our goodwill, core deposit intangible, and customer list intangibles, and determined no impairments were indicated. However, the impacts of the COVID-19 pandemic, which began in March 2020, continue to evolve. The Company’s assessment in 2019 resulted in an $0.8 million full impairment charge on non-bank goodwill related to a change in business strategy. A summary of goodwill and other intangibles was as follows. Six Months Ended Year Ended (in thousands) June 30, 2020 December 31, 2019 Goodwill $ 151,198 $ 151,198 Core deposit intangibles 9,278 10,897 Customer list intangibles 3,618 3,872 Other intangibles 12,896 14,769 Goodwill and other intangibles, net $ 164,094 $ 165,967 Goodwill : A summary of goodwill was as follows. During 2019, goodwill increased due to the Choice acquisition. See Note 2 for additional information on the Company's acquisitions. Six Months Ended Year Ended (in thousands) June 30, 2020 December 31, 2019 Goodwill: Goodwill at beginning of year $ 151,198 $ 107,366 Acquisition — 44,594 Impairment — (762) Goodwill at end of period $ 151,198 $ 151,198 Other intangible assets : 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. See Note 2 for additional information on the Company's acquisitions. Six Months Ended Year Ended (in thousands) June 30, 2020 December 31, 2019 Core deposit intangibles: Gross carrying amount $ 30,715 $ 30,715 Accumulated amortization (21,437) (19,818) Net book value $ 9,278 $ 10,897 Additions during the period $ — $ 1,700 Amortization during the period $ 1,619 $ 3,365 Customer list intangibles: Gross carrying amount $ 5,523 $ 5,523 Accumulated amortization (1,905) (1,651) Net book value $ 3,618 $ 3,872 Additions during the period $ — $ — Amortization during the period $ 254 $ 507 Mortgage servicing rights : Mortgage servicing rights are amortized in proportion to and over the period of estimated net servicing income, and assessed for impairment at each reporting date, with the amortization recorded in mortgage income, net, in the consolidated statements of income. Mortgage servicing rights are carried at the lower of the initial capitalized amount, net of accumulated amortization, or estimated fair value, and are included in other assets in the consolidated balance sheets. A summary of the changes in the mortgage servicing rights asset was as follows. Six Months Ended Year Ended (in thousands) June 30, 2020 December 31, 2019 Mortgage servicing rights ("MSR") asset: MSR asset at beginning of year $ 5,919 $ 3,749 Capitalized MSR 2,250 2,876 MSR asset acquired — 160 Amortization during the period (604) (866) MSR asset at end of period $ 7,565 $ 5,919 Valuation allowance at beginning of year $ — $ — Additions (400) — Valuation allowance at end of period $ (400) $ — MSR asset, net $ 7,165 $ 5,919 Fair value of MSR asset at end of period $ 8,979 $ 8,420 Residential mortgage loans serviced for others $ 1,010,118 $ 847,756 Net book value of MSR asset to loans serviced for others 0.71 % 0.70 % The Company periodically evaluates its mortgage servicing rights asset for impairment. At each reporting date, impairment is assessed based on estimated fair value using estimated prepayment speeds of the underlying mortgage loans serviced and stratifications based on the risk characteristics of the underlying loans (predominantly loan type and note interest rate). A valuation allowance of $0.4 million was recorded for the six months ended June 30, 2020, while no valuation allowance was recorded for the year ended December 31, 2019. See Note 9 for additional information on the fair value of the MSR asset. The following table shows the estimated future amortization expense for amortizing intangible assets and the MSR asset. The projections are based on existing asset balances, the current interest rate environment and prepayment speeds as of June 30, 2020. 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 Customer list MSR asset Year ending December 31, 2020 (remaining six months) $ 1,374 $ 253 $ 653 2021 2,453 507 1,139 2022 1,987 507 1,131 2023 1,490 483 1,365 2024 1,010 449 658 2025 573 449 658 Thereafter 391 970 1,961 Total $ 9,278 $ 3,618 $ 7,565 |
Short and Long-Term Borrowings
Short and Long-Term Borrowings | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Short and Long-Term Borrowings | Short and Long-Term Borrowings Short-Term Borrowings: Short-term borrowings include any borrowing with an original maturity of one year or less. At both June 30, 2020 and December 31, 2019, the Company did not have any outstanding short-term borrowings. Long-Term Borrowings: The components of long-term borrowings (borrowing with an original maturity greater than one year) were as follows. (in thousands) June 30, 2020 December 31, 2019 PPP Liquidity Facility (“PPPLF”) $ 335,981 $ — FHLB advances 39,030 25,061 Junior subordinated debentures 30,815 30,575 Subordinated notes 12,000 11,993 Total long-term borrowings $ 417,826 $ 67,629 PPPLF: To support the effectiveness of the PPP loans, the Federal Reserve introduced the PPPLF to extend credit to financial institutions that made PPP loans, with the related PPP loans used as collateral on the borrowings. The PPPLF borrowings have a fixed interest rate of 0.35% and a maturity date equal to the maturity date of the related PPP loans, with the PPP loans maturing either two FHLB Advances : The FHLB advances bear fixed rates, require interest-only monthly payments, and have maturity dates through 2027. The weighted average rate of the FHLB advances was 0.93% at June 30, 2020 and 1.57% at December 31, 2019. 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 value) are being accreted to interest expense over the remaining life of the debentures. All the debentures below are currently callable and may be redeemed in part or in full at par plus any accrued but unpaid interest. At June 30, 2020 and December 31, 2019, $29.7 million and $29.4 million, respectively, qualify as Tier 1 capital. Junior Subordinated Debentures June 30, 2020 December 31, 2019 (in thousands) Maturity Par Unamortized Carrying Carrying 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 (3,072) 7,238 7,138 2006 Baylake Corp. (3) 9/30/2036 16,598 (3,765) 12,833 12,715 2004 First Menasha Bancshares, Inc. (4) 3/17/2034 5,155 (597) 4,558 4,536 Total $ 38,249 $ (7,434) $ 30,815 $ 30,575 (1) The interest rate is 8.00% fixed. (2) The debentures, assumed in April 2013 as the result of an acquisition, have a floating rate of the three-month LIBOR plus 1.43%, adjusted quarterly. The interest rates were 1.74% and 3.32% as of June 30, 2020 and December 31, 2019, respectively. (3) The debentures, assumed in April 2016 as a result of an acquisition, have a floating rate of the three-month LIBOR plus 1.35%, adjusted quarterly. The interest rates were 1.66% and 3.31% as of June 30, 2020 and December 31, 2019, respectively. (4) The debentures, assumed in April 2017 as the result of an acquisition, have a floating rate of the three-month LIBOR plus 2.79%, adjusted quarterly. The interest rates were 3.09% and 4.69% as of June 30, 2020 and December 31, 2019, respectively. Subordinated Notes : In first half 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, and are callable on or after the fifth anniversary of their respective issuances dates. The subordinated Notes qualify for Tier 2 capital for regulatory purposes, and are discounted in accordance with regulations when the debt has five years or less remaining to maturity. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020 U.S. government agency securities $ 63,850 $ — $ 63,850 $ — State, county and municipals 166,498 — 166,498 — Mortgage-backed securities 196,896 — 196,896 — Corporate debt securities 83,565 — 80,435 3,130 Securities AFS $ 510,809 $ — $ 507,679 $ 3,130 Other investments (equity securities) $ 3,213 $ 3,213 $ — $ — 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 $ — $ — 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 June 30, 2020 and December 31, 2019, it was determined that carrying value was the best approximation of fair value for these Level 3 securities, based primarily on the internal analysis on these securities. The following table presents the changes in the Level 3 securities AFS measured at fair value on a recurring basis. (in thousands) Six Months Ended Year Ended Level 3 Fair Value Measurements: June 30, 2020 December 31, 2019 Balance at beginning of year $ 3,130 $ 8,490 Acquired balance — 300 Paydowns/Sales/Settlements — (5,660) Balance at end of period $ 3,130 $ 3,130 Nonrecurring basis fair value measurements: The following table presents the Company’s assets measured at fair value on a nonrecurring basis, aggregated by level in the fair value hierarchy within which those measurements fall. (in thousands) Fair Value Measurements Using Measured at Fair Value on a Nonrecurring Basis: Total Level 1 Level 2 Level 3 June 30, 2020 Collateral dependent loans $ 7,776 $ — $ — $ 7,776 Other real estate owned (“OREO”) 1,000 — — 1,000 MSR asset 8,979 — — 8,979 December 31, 2019 Impaired loans $ 16,150 $ — $ — $ 16,150 OREO 1,000 — — 1,000 MSR asset 8,420 — — 8,420 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. June 30, 2020 (in thousands) Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 822,684 $ 822,684 $ 822,684 $ — $ — Certificates of deposit in other banks 17,809 17,825 — 17,825 — Securities AFS 510,809 510,809 — 507,679 3,130 Other investments, including equity securities 26,375 26,375 3,213 19,299 3,863 Loans held for sale 21,832 22,377 — 22,377 — Loans, net 2,792,371 2,878,986 — — 2,878,986 BOLI 78,953 78,953 78,953 — — MSR asset 7,165 8,979 — — 8,979 Financial liabilities: Deposits $ 3,537,805 $ 3,545,764 $ — $ — $ 3,545,764 Short-term borrowings — — — — — Long-term borrowings 417,826 417,905 — 375,707 42,198 December 31, 2019 (in thousands) Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 182,059 $ 182,059 $ 182,059 $ — $ — Certificates of deposit in other banks 19,305 19,310 — 19,310 — Securities AFS 449,302 449,302 — 446,172 3,130 Other investments, including equity securities 24,072 24,072 3,375 16,759 3,938 Loans held for sale 2,706 2,753 — 2,753 — Loans, net 2,559,779 2,593,110 — — 2,593,110 BOLI 78,140 78,140 78,140 — — MSR asset 5,919 8,420 — — 8,420 Financial liabilities: Deposits $ 2,954,453 $ 2,956,229 $ — $ — $ 2,956,229 Long-term borrowings 67,629 66,816 — 25,075 41,741 The 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 exchange-traded equity securities are discussed under “Recurring basis fair value measurements” above. The carrying amount of Federal Reserve Bank and FHLB stock is a reasonably accepted fair value estimate given their restricted nature. Fair value is the redeemable (carrying) value based on the redemption provisions of the instruments which is considered a Level 2 measurement. The carrying amount of the remaining other investments (particularly common stocks of companies or other banks that are not publicly traded) approximates their fair value, determined primarily by analysis of company financial statements and recent capital issuances of the respective companies or banks, if any, and represents a Level 3 measurement. Loans held for sale: The fair value estimation process for the loans held for sale portfolio is segregated by loan type. The estimated fair value was based on what secondary markets are currently offering for portfolios with similar characteristics and represents a Level 2 measurement. Loans, net : For variable-rate loans that reprice frequently and with no significant change in credit risk or other optionality, fair values are based on carrying values. Fair values for all other loans are estimated by discounting contractual cash flows using estimated market discount rates, which reflect the credit and interest rate risk inherent in the loan. Collateral-dependent impaired loans are included in loans, net. The fair value of loans is considered to be a Level 3 measurement due to internally developed discounted cash flow measurements. Deposits : The fair value of deposits with no stated maturity (such as demand deposits, savings, interest and noninterest checking, and money market accounts) is, by definition, equal to the amount payable on demand at the reporting date. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market place on certificates of similar remaining maturities. Use of internal discounted cash flows provides a Level 3 fair value measurement. Long-term borrowings : The fair value of the FHLB advances is obtained from the FHLB which uses a discounted cash flow analysis based on current market rates of similar maturity debt securities and represents a Level 2 measurement. The PPPLF funding has a fixed rate of 0.35% for all participants; thus, carrying value approximates the estimated fair value and represents a Level 2 measurement. The fair values of the junior subordinated debentures and subordinated notes utilize a discounted cash flow analysis based on an estimate of current interest rates being offered by instruments with similar terms and credit quality. Since the market for these instruments is limited, the internal evaluation represents a Level 3 measurement. Lending-related commitments and derivative financial instruments : At June 30, 2020 and December 31, 2019, the estimated fair value of letters of credit, interest rate lock commitments on residential mortgage loans, outstanding mandatory commitments to sell residential mortgage loans into the secondary market, and mirror interest rate swap agreements were not significant. Limitations : Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Fair value estimates may not be realizable in an immediate settlement of the instrument. In some instances, there are no quoted market prices for the Company’s various |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
General | General In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the consolidated balance sheets, statements of income, comprehensive income, changes in stockholders’ equity and cash flows of Nicolet Bankshares, Inc. (the “Company” or “Nicolet”) and its subsidiaries, for the periods presented, and all such adjustments are of a normal recurring nature. All material intercompany transactions and balances have been eliminated. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the entire year. These interim consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission and, therefore, certain information and footnote disclosures normally presented in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been omitted or abbreviated. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. |
Critical Accounting Policies and Estimates | Critical Accounting Policies and Estimates Preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future. Estimates are used in accounting for, among other items, the allowance for credit 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 credit losses, the determination and assessment of deferred tax assets and liabilities, and the valuation of loans acquired in acquisition transactions; therefore, these are critical accounting policies. Factors that may cause sensitivity to the aforementioned estimates include but are not limited to: external market factors such as market interest rates and employment rates, changes to operating policies and procedures, changes in applicable banking or tax regulations, and changes to deferred tax estimates. Actual results may ultimately differ from estimates, although management does not generally believe such differences would materially affect the consolidated financial statements in any individual reporting period presented. There have been no material changes or developments with respect to the assumptions or methodologies that the Company uses when applying what management believes are critical accounting policies and developing critical accounting estimates as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, except as disclosed in Updates to Significant Accounting Policies and Recent Accounting Developments Adopted below. |
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. 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. The Company evaluates securities AFS in unrealized loss positions on a quarterly basis to determine whether the decline in fair value below the amortized costs basis (impairment) is due to credit-related factors or noncredit-related factors. In making this evaluation, management considers the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. Any impairment that is not credit-related is recognized in other comprehensive income, net of related deferred income taxes. Credit-related impairment is recognized as an allowance for credit losses (“ACL”) on the balance sheet based on the amount by which the amortized cost basis exceeds the fair value, with a corresponding charge to net income. Both the ACL and the charge to net income may be reversed if conditions change. However, if the Company intends to sell an impaired AFS security or more likely than not will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount must be recognized in net income with a corresponding adjustment to the security's amortized cost basis rather than through the establishment of an ACL. See Note 5 for additional disclosures on AFS securities. |
Loans - Originated and Acquired | Loans – Originated : Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are carried at their amortized cost basis, which is the unpaid principal balance outstanding, net of deferred loan fees and costs and any direct principal charge-offs. The Company made an accounting policy election to exclude accrued interest from the amortized cost basis of loans and report such accrued interest as part of accrued interest receivable and other assets on the consolidated balance sheets. 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 6 for additional information and disclosures on loans. Loans – Acquired : Loans purchased in acquisition transactions are acquired loans, and are recorded at their estimated fair value at the acquisition date. Prior to January 1, 2020, as described in further detail in the Company’s 2019 Annual Report on Form 10-K, the Company initially classified acquired loans as either purchased 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”). The Company estimated the fair value of PCI loans based on the amount and timing of expected principal, interest and other cash flows for each loan. The excess of the loan’s contractual principal and interest payments over all cash flows expected to be collected at acquisition was considered an amount that should not be accreted. These credit discounts (“nonaccretable marks”) were included in the determination of the initial fair value for acquired loans; therefore, no allowance for credit losses was recorded at the acquisition date. Differences between the estimated fair values and expected cash flows of acquired loans at the acquisition date that were not credit-based (“accretable marks”) were subsequently accreted to interest income over the estimated life of the loans. Subsequent to the acquisition date for PCI loans, increases in cash flows over those expected at the acquisition date resulted in a move of the discount from nonaccretable to accretable, while decreases in expected cash flows after the acquisition date were recognized through the provision for credit losses. Subsequent to January 1, 2020, acquired loans that have evidence of more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. At acquisition, an estimate of expected credit losses is made for PCD loans. This initial allowance for credit losses is allocated to individual PCD loans and added to the purchase price or acquisition date fair value to establish the initial amortized cost basis of the PCD loans. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to noncredit factors, resulting in a discount or premium that is amortized to interest income. For acquired loans not deemed PCD loans at acquisition, the difference between the initial fair value mark and the unpaid principal balance are recognized in interest income over the estimated life of the loans. In addition, an initial allowance for expected credit losses is estimated and recorded as provision expense at the acquisition date. The subsequent measurement of expected credit losses for all acquired loans is the same as the subsequent measurement of expected credit losses for originated loans. See Note 6 for additional information and disclosures on loans. |
Allowance for Credit Losses - Loans | Allowance for Credit Losses - Loans : The ACL-Loans represents management’s estimate of expected credit losses in the Company’s loan portfolio at the balance sheet date. The Company estimates the ACL-Loans based on the amortized cost basis of the underlying loan and has made an accounting policy election to exclude accrued interest from the loan’s amortized cost basis and the related measurement of the ACL-Loans. Estimating the amount of the ACL-Loans 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 nonaccrual loans, and the level of potential problem loans, all of which may be susceptible to significant change. Prior to January 1, 2020, as described in further detail in the Company’s 2019 Annual Report on Form 10-K, the Company used an incurred loss impairment model. This methodology assessed the overall appropriateness of the allowance for credit losses and included 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 were individually assessed and measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price or the fair value of the collateral if the loan was collateral dependent. Loans that were determined not to be impaired were 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 were also provided for certain environmental and other qualitative factors. Subsequent to January 1, 2020, the Company uses a current expected credit loss model (“CECL”). This methodology also considers historical loss rates and other qualitative adjustments, as well as a new forward-looking component that considers reasonable and supportable forecasts over the expected life of each loan. To develop the ACL-Loans estimate under the CECL |
Recent Accounting Developments Adopted | Recent Accounting Developments Adopted In August 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . This ASU modifies the disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. The updated guidance was effective for annual reporting periods, including interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted the updated guidance effective January 1, 2020, with no material impact on its consolidated financial statements as the new ASU only revises disclosure requirements. See Note 9 for fair value disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments intended to improve the financial reporting by requiring earlier recognition of credit losses on loans and certain other financial assets. Topic 326 replaces the incurred loss impairment model (which recognizes losses when a probable threshold is met) with a requirement to recognize lifetime expected credit losses immediately when a financial asset is originated or purchased. The measurement of lifetime expected credit losses is based on historical experience, current conditions, and reasonable and supportable forecasts. The ASU was effective for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted the new accounting standard on January 1, 2020, as required, and recorded a cumulative-effect adjustment of $6 million to retained earnings. See Updates to Significant Accounting Policies above for changes to accounting policies and see Notes 5 and 6 for additional disclosures related to this new accounting pronouncement. |
Reclassifications | Reclassifications Certain amounts in the 2019 consolidated financial statements have been reclassified to conform to the 2020 presentation. |
Allowance for credit losses - Loans | The ACL-Loans represents management’s estimate of expected credit losses in the Company’s loan portfolio at the balance sheet date. To assess the appropriateness of the ACL-Loans, an allocation methodology is applied by Nicolet which focuses on evaluation of qualitative and environmental factors, including but not limited to: (i) evaluation of facts and issues related to specific loans; (ii) management’s ongoing review and grading of the loan portfolio; (iii) consideration of historical loan loss and delinquency experience on each portfolio segment; (iv) trends in past due and nonperforming loans; (v) the risk characteristics of the various loan segments; (vi) changes in the size and character of the loan portfolio; (vii) concentrations of loans to specific borrowers or industries; (viii) existing economic conditions; (ix) the fair value of underlying collateral; and (x) other qualitative and quantitative factors which could affect expected credit losses. Assessing these numerous factors involves significant judgment.Management allocates the ACL-Loans by pools of risk within each loan portfolio segment. The allocation methodology consists of the following components. First, a specific reserve is established for individually evaluated credit-deteriorated loans, which management defines as nonaccrual credit relationships over $250,000, all loans determined to be troubled debt restructurings (“restructured loans”), plus other loans with evidence of credit deterioration. The specific reserve in the ACL-Loans for these credit deteriorated loans is equal to the aggregate collateral or discounted cash flow shortfall. Second, management allocates the ACL-Loans with historical loss rates by loan segment. The loss factors are measured on a quarterly basis and applied to each loan segment based on current loan balances and projected for their expected remaining life. Next, management allocates the ACL-Loans using the qualitative factors mentioned above. Consideration is given to those current qualitative or environmental factors that are likely to cause estimated credit losses as of the evaluation date to differ from the historical loss experience of each loan segment. Lastly, management considers reasonable and supportable forecasts to assess the collectability of future cash flows. |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per common share | Presented below are the calculations for basic and diluted earnings per common share. Three Months Ended June 30, Six Months Ended June 30, (In thousands, except per share data) 2020 2019 2020 2019 Net income attributable to Nicolet Bankshares, Inc. $ 13,478 $ 18,549 $ 24,033 $ 28,816 Weighted average common shares outstanding 10,417 9,374 10,467 9,418 Effect of dilutive common stock awards 103 318 192 293 Diluted weighted average common shares outstanding 10,520 9,692 10,659 9,711 Basic earnings per common share* $ 1.29 $ 1.98 $ 2.30 $ 3.06 Diluted earnings per common share* $ 1.28 $ 1.91 $ 2.25 $ 2.97 *Cumulative quarterly per share performance may not equal annual per share totals due to the effects of the amount and timing of capital increases. When computing earnings per share for an interim period, the denominator is based on the weighted average shares outstanding during the interim period, and not on an annualized weighted average basis. Accordingly, the sum of the earnings per share data for the quarters will not necessarily equal the year to date earnings per share data. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of weighted average assumption for stock option | The weighted average assumptions used in the Black-Scholes model for valuing stock option grants were as follows. Six Months Ended June 30, 2020 2019 Dividend yield — % — % Expected volatility 25 % 25 % Risk-free interest rate 1.67 % 2.37 % Expected average life 7 years 7 years Weighted average per share fair value of options $ 21.83 $ 19.23 |
Schedule of stock options outstanding | A summary of the Company’s stock option activity is summarized below. Stock Options Option Shares Weighted Weighted Average Aggregate Outstanding - December 31, 2019 1,443,733 $ 48.75 Granted 39,500 71.89 Exercise of stock options * (43,552) 23.07 Forfeited — — Outstanding - June 30, 2020 1,439,681 $ 50.16 7.1 $ 10,601 Exercisable - June 30, 2020 726,931 $ 44.59 6.4 $ 7,527 * The terms of the stock option agreements permit having a number of shares of stock withheld, the fair market value of which as of the date of exercise is sufficient to satisfy the exercise price and/or tax withholding requirements. For the six months ended June 30, 2020, 17,699 such shares were surrendered to the Company. |
Schedule of restricted stock awards | A summary of the Company’s restricted stock activity is summarized below. Restricted Stock Weighted Average Grant Restricted Shares Outstanding - December 31, 2019 $ 44.94 22,521 Granted 55.52 10,450 Vested * 43.66 (13,615) Forfeited — — Outstanding - June 30, 2020 $ 51.55 19,356 * The terms of the restricted stock agreements permit the surrender of shares to the Company upon vesting in order to satisfy applicable tax withholding requirements at the minimum statutory withholding rate, and accordingly, 1,407 shares were surrendered during the six months ended June 30, 2020. |
Securities Available for Sale (
Securities Available for Sale (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Securities, Available-for-sale [Abstract] | |
Schedule of amortized cost and fair value of securities available for sale | Amortized cost and fair value of securities available for sale are summarized as follows. June 30, 2020 (in thousands) Amortized Cost Gross Gross Fair Value Fair Value as % of Total U.S. government agency securities $ 63,512 $ 338 $ — $ 63,850 12 % State, county and municipals 162,239 4,261 2 166,498 33 % Mortgage-backed securities 188,819 8,087 10 196,896 39 % Corporate debt securities 78,036 5,529 — 83,565 16 % Total $ 492,606 $ 18,215 $ 12 $ 510,809 100 % December 31, 2019 (in thousands) Amortized Cost Gross Gross Fair Value Fair Value as % of Total U.S. government agency securities $ 16,516 $ 4 $ 60 $ 16,460 4 % State, county and municipals 155,501 1,049 157 156,393 35 % Mortgage-backed securities 193,223 2,492 697 195,018 43 % Corporate debt securities 78,009 3,422 — 81,431 18 % Total $ 443,249 $ 6,967 $ 914 $ 449,302 100 % |
Schedule of unrealized losses and fair value | The following table presents gross unrealized losses and the related estimated fair value of securities AFS for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position. June 30, 2020 Less than 12 months 12 months or more Total ($ in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Number of State, county and municipals $ 882 $ 2 $ — $ — $ 882 $ 2 2 Mortgage-backed securities 1,329 1 762 9 2,091 10 23 Total $ 2,211 $ 3 $ 762 $ 9 $ 2,973 $ 12 25 December 31, 2019 Less than 12 months 12 months or more Total ($ in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Number of 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 Total $ 73,112 $ 379 $ 65,967 $ 535 $ 139,079 $ 914 212 |
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. June 30, 2020 (in thousands) Amortized Cost Fair Value Due in less than one year $ 28,148 $ 28,294 Due in one year through five years 217,289 224,722 Due after five years through ten years 42,898 44,561 Due after ten years 15,452 16,336 303,787 313,913 Mortgage-backed securities 188,819 196,896 Securities AFS $ 492,606 $ 510,809 |
Schedule of proceeds from sale of securities AFS | Proceeds and realized gains / losses from the sale of securities AFS were as follows. Six Months Ended June 30, (in thousands) 2020 2019 Gross gains $ 164 $ 152 Gross losses — (120) Gains (losses) on sales of securities AFS, net $ 164 $ 32 Proceeds from sales of securities AFS $ 9,232 $ 13,240 |
Loans, Allowance for Credit L_2
Loans, Allowance for Credit Losses - Loans, and Credit Quality (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Schedule of loan composition by portfolio segment | The loan composition is summarized as follows. June 30, 2020 December 31, 2019 (in thousands) Amount % of Amount % of Commercial & industrial $ 729,264 26 % $ 806,189 31 % Paycheck Protection Program (“PPP”) loans 329,157 12 — — Owner-occupied commercial real estate (“CRE”) 495,722 17 496,372 19 Agricultural 99,020 3 95,450 4 CRE investment 447,900 16 443,218 17 Construction & land development 107,277 4 92,970 4 Residential construction 51,332 2 54,403 2 Residential first mortgage 417,694 15 432,167 17 Residential junior mortgage 114,323 4 122,771 5 Retail & other 29,812 1 30,211 1 Loans 2,821,501 100 % 2,573,751 100 % Less allowance for credit losses - Loans (“ACL-Loans”) 29,130 13,972 Loans, net $ 2,792,371 $ 2,559,779 Allowance for credit losses - Loans to loans 1.03 % 0.54 % |
Schedule of changes in allowance for credit losses by portfolio segment | A roll forward of the allowance for credit losses is summarized as follows. Six Months Ended Year Ended (in thousands) June 30, 2020 June 30, 2019 December 31, 2019 Beginning balance $ 13,972 $ 13,153 $ 13,153 Adoption of CECL 8,488 — — Initial PCD ACL 797 — — Total impact for adoption of CECL 9,285 — — Provision for credit losses 6,000 500 1,200 Charge-offs (216) (232) (927) Recoveries 89 150 546 Net (charge-offs) recoveries (127) (82) (381) Ending balance $ 29,130 $ 13,571 $ 13,972 The following table presents the balance and activity in the ACL-Loans by portfolio segment. Six Months Ended June 30, 2020 (in thousands) Commercial Owner- Agricultural CRE Construction & land Residential Residential Residential Retail Total ACL-Loans * Beginning balance $ 5,471 $ 3,010 $ 579 $ 1,600 $ 414 $ 368 $ 1,669 $ 517 $ 344 $ 13,972 Adoption of CECL 2,962 1,249 361 1,970 51 124 1,286 351 134 8,488 Initial PCD ACL 797 — — — — — — — — 797 Provision 1,010 919 399 1,542 325 21 1,348 294 142 6,000 Charge-offs (97) — — (20) — — — — (99) (216) Recoveries 60 — — — — — 4 15 10 89 Net (charge-offs) recoveries (37) — — (20) — — 4 15 (89) (127) Ending balance $ 10,203 $ 5,178 $ 1,339 $ 5,092 $ 790 $ 513 $ 4,307 $ 1,177 $ 531 $ 29,130 As % of ACL-Loans 35 % 18 % 4 % 17 % 3 % 2 % 15 % 4 % 2 % 100 % *The PPP loans are fully guaranteed by the SBA; thus, no ACL-Loans has been allocated to these loans. For comparison purposes, the following table presents the balance and activity in the ACL-Loans by portfolio segment for the prior year-end period. Year Ended December 31, 2019 (in thousands) Commercial Owner- Agricultural CRE Construction Residential Residential Residential Retail & ACL-Loans Beginning balance $ 5,271 $ 2,847 $ 422 $ 1,470 $ 510 $ 211 $ 1,646 $ 472 $ 304 $ 13,153 Provision (61) 254 157 130 (96) 383 9 86 338 1,200 Charge-offs (159) (93) — — — (226) (22) (80) (347) (927) Recoveries 420 2 — — — — 36 39 49 546 Net (charge-offs) recoveries 261 (91) — — — (226) 14 (41) (298) (381) Ending balance $ 5,471 $ 3,010 $ 579 $ 1,600 $ 414 $ 368 $ 1,669 $ 517 $ 344 $ 13,972 As % of ACL-Loans 39 % 22 % 4 % 11 % 3 % 3 % 12 % 4 % 2 % 100 % |
Schedule of collateral dependent loans by portfolio segment | The following table presents collateral dependent loans by portfolio segment and collateral type, including those loans with and without a related allowance allocation as of June 30, 2020. June 30, 2020 Collateral Type (in thousands) Real Estate Other Business Assets Total Without an Allowance With an Allowance Allowance Allocation Commercial & industrial $ — $ 3,688 $ 3,688 $ — $ 3,688 $ 1,231 PPP loans — — — — — — Owner-occupied CRE 2,524 — 2,524 339 2,185 148 Agricultural 600 835 1,435 1,435 — — CRE investment 975 — 975 975 — — Construction & land development 533 — 533 533 — — Residential construction — — — — — — Residential first mortgage — — — — — — Residential junior mortgage — — — — — — Retail & other — — — — — — Total loans $ 4,632 $ 4,523 $ 9,155 $ 3,282 $ 5,873 $ 1,379 |
Schedule of impaired loans by portfolio segment | The following table presents impaired loans and their respective allowance for credit loss allocations at December 31, 2019, as determined in accordance with historical accounting guidance. Total Impaired Loans – December 31, 2019 (in thousands) Recorded Unpaid Principal Related Average Recorded Interest Income Commercial & industrial $ 5,932 $ 7,950 $ 625 $ 5,405 $ 1,170 Owner-occupied CRE 3,430 4,016 — 3,677 256 Agricultural 2,134 2,172 116 2,311 37 CRE investment 2,426 2,790 — 2,497 364 Construction & land development 382 382 — 460 — Residential construction — — — — — Residential first mortgage 2,357 2,629 — 2,412 178 Residential junior mortgage 218 349 — 224 58 Retail & other 12 12 — 12 — Total $ 16,891 $ 20,300 $ 741 $ 16,998 $ 2,063 |
Schedule of past due loans by portfolio segment | The following tables present past due loans by portfolio segment. June 30, 2020 (in thousands) 30-89 Days Past 90 Days & Over or nonaccrual Current Total Commercial & industrial $ 162 $ 4,142 $ 724,960 $ 729,264 PPP loans — — 329,157 329,157 Owner-occupied CRE 71 3,005 492,646 495,722 Agricultural 35 1,711 97,274 99,020 CRE investment — 975 446,925 447,900 Construction & land development 196 533 106,548 107,277 Residential construction 549 — 50,783 51,332 Residential first mortgage 354 1,067 416,273 417,694 Residential junior mortgage — 565 113,758 114,323 Retail & other 85 — 29,727 29,812 Total loans $ 1,452 $ 11,998 $ 2,808,051 $ 2,821,501 Percent of total loans 0.1 % 0.4 % 99.5 % 100.0 % December 31, 2019 (in thousands) 30-89 Days Past 90 Days & Over or nonaccrual Current Total Commercial & industrial $ 1,729 $ 6,249 $ 798,211 $ 806,189 Owner-occupied CRE 112 3,311 492,949 496,372 Agricultural — 1,898 93,552 95,450 CRE investment — 1,073 442,145 443,218 Construction & land development 2,063 20 90,887 92,970 Residential construction 302 — 54,101 54,403 Residential first mortgage 2,736 1,090 428,341 432,167 Residential junior mortgage 217 480 122,074 122,771 Retail & other 110 1 30,100 30,211 Total loans $ 7,269 $ 14,122 $ 2,552,360 $ 2,573,751 Percent of total loans 0.3 % 0.5 % 99.2 % 100.0 % |
Schedule of nonaccrual loans by portfolio segment | The following table presents nonaccrual loans by portfolio segment. The nonaccrual loans without a related allowance for credit losses have been reflected in the collateral dependent loans table above. June 30, 2020 December 31, 2019 (in thousands) Nonaccrual Loans % of Total Nonaccrual Loans % of Total Commercial & industrial $ 4,142 35 % $ 6,249 44 % PPP loans — — — — Owner-occupied CRE 3,005 25 3,311 23 Agricultural 1,711 14 1,898 14 CRE investment 975 8 1,073 8 Construction & land development 533 4 20 — Residential construction — — — — Residential first mortgage 1,067 9 1,090 8 Residential junior mortgage 565 5 480 3 Retail & other — — 1 — Nonaccrual loans $ 11,998 100 % $ 14,122 100 % Percent of total loans 0.4 % 0.5 % |
Schedule of loans by loan risk categories by portfolio segment | The following table presents total loans by risk categories and year of origination. June 30, 2020 Amortized Cost Basis by Origination Year (in thousands) 2020 2019 2018 2017 2016 Prior Revolving Revolving to Term TOTAL Commercial & industrial (a) Grades 1-4 $ 397,577 $ 150,186 $ 109,524 $ 68,689 $ 28,748 $ 58,379 $ 183,671 $ — $ 996,774 Grade 5 229 5,398 7,778 625 1,524 2,777 16,707 — 35,038 Grade 6 51 23 796 5,698 1 35 4,136 — 10,740 Grade 7 1,732 1,215 1,112 1,382 545 6,057 3,826 — 15,869 Total $ 399,589 $ 156,822 $ 119,210 $ 76,394 $ 30,818 $ 67,248 $ 208,340 $ — $ 1,058,421 Owner-occupied CRE Grades 1-4 $ 36,065 $ 67,425 $ 82,360 $ 62,980 $ 49,060 $ 164,982 $ 1,499 $ — $ 464,371 Grade 5 — 574 1,646 6,572 379 7,086 488 — 16,745 Grade 6 — — — 1,736 — 734 — — 2,470 Grade 7 — 337 281 2,189 1,776 7,553 — — 12,136 Total $ 36,065 $ 68,336 $ 84,287 $ 73,477 $ 51,215 $ 180,355 $ 1,987 $ — $ 495,722 Agricultural Grades 1-4 $ 8,766 $ 5,484 $ 7,266 $ 9,697 $ 2,240 $ 29,722 $ 20,775 $ — $ 83,950 Grade 5 20 375 36 573 689 4,772 633 — 7,098 Grade 6 — — — 328 392 — — — 720 Grade 7 — — 34 115 1,200 5,824 79 — 7,252 Total $ 8,786 $ 5,859 $ 7,336 $ 10,713 $ 4,521 $ 40,318 $ 21,487 $ — $ 99,020 CRE investment Grades 1-4 $ 42,819 $ 76,688 $ 41,581 $ 69,179 $ 39,866 $ 158,663 $ 6,303 $ — $ 435,099 Grade 5 — — 106 1,307 388 6,396 45 — 8,242 Grade 6 — 104 — 913 654 — — — 1,671 Grade 7 — — — — 144 2,744 — — 2,888 Total $ 42,819 $ 76,792 $ 41,687 $ 71,399 $ 41,052 $ 167,803 $ 6,348 $ — $ 447,900 Construction & land development Grades 1-4 $ 25,720 $ 40,447 $ 19,330 $ 3,442 $ 2,261 $ 9,282 $ 1,799 $ — $ 102,281 Grade 5 — 219 2,699 45 — 26 — — 2,989 Grade 6 — 1,100 — — — — — — 1,100 Grade 7 — — — — — 907 — — 907 Total $ 25,720 $ 41,766 $ 22,029 $ 3,487 $ 2,261 $ 10,215 $ 1,799 $ — $ 107,277 Residential construction Grades 1-4 $ 14,455 $ 34,545 $ 1,459 $ 351 $ 19 $ 133 $ — $ — $ 50,962 Grade 5 — 314 — 56 — — — — 370 Grade 6 — — — — — — — — — Grade 7 — — — — — — — — — Total $ 14,455 $ 34,859 $ 1,459 $ 407 $ 19 $ 133 $ — $ — $ 51,332 Residential first mortgage Grades 1-4 $ 54,206 $ 71,663 $ 49,497 $ 53,126 $ 52,588 $ 128,667 $ 919 $ — $ 410,666 Grade 5 — 825 1,331 258 760 1,689 — — 4,863 Grade 6 — — — — — — — — — Grade 7 — 656 197 19 65 1,228 — — 2,165 Total $ 54,206 $ 73,144 $ 51,025 $ 53,403 $ 53,413 $ 131,584 $ 919 $ — $ 417,694 Residential junior mortgage Grades 1-4 $ 2,470 $ 5,261 $ 4,799 $ 1,642 $ 1,753 $ 3,203 $ 92,924 $ 1,669 $ 113,721 Grade 5 — — — — — 33 — — 33 Grade 6 — — — — — — — — — Grade 7 — — — 28 — 339 202 — 569 Total $ 2,470 $ 5,261 $ 4,799 $ 1,670 $ 1,753 $ 3,575 $ 93,126 $ 1,669 $ 114,323 Retail & other Grades 1-4 $ 5,090 $ 6,205 $ 2,403 $ 1,869 $ 941 $ 1,522 $ 11,782 $ — $ 29,812 Grade 5 — — — — — — — — — Grade 6 — — — — — — — — — Grade 7 — — — — — — — — — Total $ 5,090 $ 6,205 $ 2,403 $ 1,869 $ 941 $ 1,522 $ 11,782 $ — $ 29,812 Total loans $ 589,200 $ 469,044 $ 334,235 $ 292,819 $ 185,993 $ 602,753 $ 345,788 $ 1,669 $ 2,821,501 (a) For purposes of this table, the $329 million net carrying value of PPP loans were originated in 2020, have a Pass risk grade (Grades 1-4) and have been included with the Commercial & industrial loan category. The following tables present total loans by risk categories. June 30, 2020 (in thousands) Grades 1- 4 Grade 5 Grade 6 Grade 7 Total Commercial & industrial $ 667,617 $ 35,038 $ 10,740 $ 15,869 $ 729,264 PPP loans 329,157 — — — 329,157 Owner-occupied CRE 464,371 16,745 2,470 12,136 495,722 Agricultural 83,950 7,098 720 7,252 99,020 CRE investment 435,099 8,242 1,671 2,888 447,900 Construction & land development 102,281 2,989 1,100 907 107,277 Residential construction 50,962 370 — — 51,332 Residential first mortgage 410,666 4,863 — 2,165 417,694 Residential junior mortgage 113,721 33 — 569 114,323 Retail & other 29,812 — — — 29,812 Total loans $ 2,687,636 $ 75,378 $ 16,701 $ 41,786 $ 2,821,501 Percent of total 95.2 % 2.7 % 0.6 % 1.5 % 100.0 % December 31, 2019 (in thousands) Grades 1- 4 Grade 5 Grade 6 Grade 7 Total Commercial & industrial $ 765,073 $ 20,199 $ 7,663 $ 13,254 $ 806,189 Owner-occupied CRE 464,661 20,855 953 9,903 496,372 Agricultural 77,082 6,785 3,275 8,308 95,450 CRE investment 430,794 8,085 2,578 1,761 443,218 Construction & land development 90,523 2,213 15 219 92,970 Residential construction 53,286 1,117 — — 54,403 Residential first mortgage 424,044 4,677 668 2,778 432,167 Residential junior mortgage 122,249 35 — 487 122,771 Retail & other 30,210 — — 1 30,211 Total loans $ 2,457,922 $ 63,966 $ 15,152 $ 36,711 $ 2,573,751 Percent of total 95.5 % 2.5 % 0.6 % 1.4 % 100.0 % |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles and Mortgage Servicing Rights (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill and intangible assets | A summary of goodwill and other intangibles was as follows. Six Months Ended Year Ended (in thousands) June 30, 2020 December 31, 2019 Goodwill $ 151,198 $ 151,198 Core deposit intangibles 9,278 10,897 Customer list intangibles 3,618 3,872 Other intangibles 12,896 14,769 Goodwill and other intangibles, net $ 164,094 $ 165,967 |
Schedule of goodwill | A summary of goodwill was as follows. During 2019, goodwill increased due to the Choice acquisition. See Note 2 for additional information on the Company's acquisitions. Six Months Ended Year Ended (in thousands) June 30, 2020 December 31, 2019 Goodwill: Goodwill at beginning of year $ 151,198 $ 107,366 Acquisition — 44,594 Impairment — (762) Goodwill at end of period $ 151,198 $ 151,198 |
Schedule of other intangible assets | Six Months Ended Year Ended (in thousands) June 30, 2020 December 31, 2019 Core deposit intangibles: Gross carrying amount $ 30,715 $ 30,715 Accumulated amortization (21,437) (19,818) Net book value $ 9,278 $ 10,897 Additions during the period $ — $ 1,700 Amortization during the period $ 1,619 $ 3,365 Customer list intangibles: Gross carrying amount $ 5,523 $ 5,523 Accumulated amortization (1,905) (1,651) Net book value $ 3,618 $ 3,872 Additions during the period $ — $ — Amortization during the period $ 254 $ 507 |
Schedule of mortgage servicing rights | A summary of the changes in the mortgage servicing rights asset was as follows. Six Months Ended Year Ended (in thousands) June 30, 2020 December 31, 2019 Mortgage servicing rights ("MSR") asset: MSR asset at beginning of year $ 5,919 $ 3,749 Capitalized MSR 2,250 2,876 MSR asset acquired — 160 Amortization during the period (604) (866) MSR asset at end of period $ 7,565 $ 5,919 Valuation allowance at beginning of year $ — $ — Additions (400) — Valuation allowance at end of period $ (400) $ — MSR asset, net $ 7,165 $ 5,919 Fair value of MSR asset at end of period $ 8,979 $ 8,420 Residential mortgage loans serviced for others $ 1,010,118 $ 847,756 Net book value of MSR asset to loans serviced for others 0.71 % 0.70 % |
Schedule of estimated future amortization expense for amortizing intangible assets and the MSR asset | The following table shows the estimated future amortization expense for amortizing intangible assets and the MSR asset. The projections are based on existing asset balances, the current interest rate environment and prepayment speeds as of June 30, 2020. 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 Customer list MSR asset Year ending December 31, 2020 (remaining six months) $ 1,374 $ 253 $ 653 2021 2,453 507 1,139 2022 1,987 507 1,131 2023 1,490 483 1,365 2024 1,010 449 658 2025 573 449 658 Thereafter 391 970 1,961 Total $ 9,278 $ 3,618 $ 7,565 |
Short and Long-Term Borrowings
Short and Long-Term Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of components of long-term borrowings | The components of long-term borrowings (borrowing with an original maturity greater than one year) were as follows. (in thousands) June 30, 2020 December 31, 2019 PPP Liquidity Facility (“PPPLF”) $ 335,981 $ — FHLB advances 39,030 25,061 Junior subordinated debentures 30,815 30,575 Subordinated notes 12,000 11,993 Total long-term borrowings $ 417,826 $ 67,629 |
Schedule of junior subordinated debentures | Junior Subordinated Debentures June 30, 2020 December 31, 2019 (in thousands) Maturity Par Unamortized Carrying Carrying 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 (3,072) 7,238 7,138 2006 Baylake Corp. (3) 9/30/2036 16,598 (3,765) 12,833 12,715 2004 First Menasha Bancshares, Inc. (4) 3/17/2034 5,155 (597) 4,558 4,536 Total $ 38,249 $ (7,434) $ 30,815 $ 30,575 (1) The interest rate is 8.00% fixed. (2) The debentures, assumed in April 2013 as the result of an acquisition, have a floating rate of the three-month LIBOR plus 1.43%, adjusted quarterly. The interest rates were 1.74% and 3.32% as of June 30, 2020 and December 31, 2019, respectively. (3) The debentures, assumed in April 2016 as a result of an acquisition, have a floating rate of the three-month LIBOR plus 1.35%, adjusted quarterly. The interest rates were 1.66% and 3.31% as of June 30, 2020 and December 31, 2019, respectively. (4) The debentures, assumed in April 2017 as the result of an acquisition, have a floating rate of the three-month LIBOR plus 2.79%, adjusted quarterly. The interest rates were 3.09% and 4.69% as of June 30, 2020 and December 31, 2019, respectively. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020 U.S. government agency securities $ 63,850 $ — $ 63,850 $ — State, county and municipals 166,498 — 166,498 — Mortgage-backed securities 196,896 — 196,896 — Corporate debt securities 83,565 — 80,435 3,130 Securities AFS $ 510,809 $ — $ 507,679 $ 3,130 Other investments (equity securities) $ 3,213 $ 3,213 $ — $ — 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 $ — $ — |
Schedule of changes in the Level 3 securities AFS measured at fair value on a recurring basis | The following table presents the changes in the Level 3 securities AFS measured at fair value on a recurring basis. (in thousands) Six Months Ended Year Ended Level 3 Fair Value Measurements: June 30, 2020 December 31, 2019 Balance at beginning of year $ 3,130 $ 8,490 Acquired balance — 300 Paydowns/Sales/Settlements — (5,660) Balance at end of period $ 3,130 $ 3,130 |
Schedule of assets measured at fair value on a nonrecurring basis | The following table presents the Company’s assets measured at fair value on a nonrecurring basis, aggregated by level in the fair value hierarchy within which those measurements fall. (in thousands) Fair Value Measurements Using Measured at Fair Value on a Nonrecurring Basis: Total Level 1 Level 2 Level 3 June 30, 2020 Collateral dependent loans $ 7,776 $ — $ — $ 7,776 Other real estate owned (“OREO”) 1,000 — — 1,000 MSR asset 8,979 — — 8,979 December 31, 2019 Impaired loans $ 16,150 $ — $ — $ 16,150 OREO 1,000 — — 1,000 MSR asset 8,420 — — 8,420 |
Schedule of estimated fair values of financial instruments | The carrying amounts and estimated fair values of the Company’s financial instruments are shown below. June 30, 2020 (in thousands) Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 822,684 $ 822,684 $ 822,684 $ — $ — Certificates of deposit in other banks 17,809 17,825 — 17,825 — Securities AFS 510,809 510,809 — 507,679 3,130 Other investments, including equity securities 26,375 26,375 3,213 19,299 3,863 Loans held for sale 21,832 22,377 — 22,377 — Loans, net 2,792,371 2,878,986 — — 2,878,986 BOLI 78,953 78,953 78,953 — — MSR asset 7,165 8,979 — — 8,979 Financial liabilities: Deposits $ 3,537,805 $ 3,545,764 $ — $ — $ 3,545,764 Short-term borrowings — — — — — Long-term borrowings 417,826 417,905 — 375,707 42,198 December 31, 2019 (in thousands) Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 182,059 $ 182,059 $ 182,059 $ — $ — Certificates of deposit in other banks 19,305 19,310 — 19,310 — Securities AFS 449,302 449,302 — 446,172 3,130 Other investments, including equity securities 24,072 24,072 3,375 16,759 3,938 Loans held for sale 2,706 2,753 — 2,753 — Loans, net 2,559,779 2,593,110 — — 2,593,110 BOLI 78,140 78,140 78,140 — — MSR asset 5,919 8,420 — — 8,420 Financial liabilities: Deposits $ 2,954,453 $ 2,956,229 $ — $ — $ 2,956,229 Long-term borrowings 67,629 66,816 — 25,075 41,741 |
Basis of Presentation (Details)
Basis of Presentation (Details) - Accounting Standards Update 2016-13 $ in Thousands | Jan. 01, 2020USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative-effect adjustment of adoption of ASU 2016-13 | $ (6,175) |
Retained Earnings | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative-effect adjustment of adoption of ASU 2016-13 | $ (6,175) |
Acquisitions (Details)
Acquisitions (Details) $ / shares in Units, $ in Thousands | May 18, 2020USD ($) | Nov. 08, 2019USD ($)$ / sharesshares | Jun. 30, 2020USD ($)Branch | Dec. 31, 2019USD ($) | Mar. 31, 2020USD ($) | Nov. 07, 2019 | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | |||||||||
Acquisition | $ 0 | $ 44,594 | |||||||
Assets | 4,541,228 | 3,577,260 | |||||||
Deposits | 3,537,805 | 2,954,453 | |||||||
Equity | 532,853 | $ 516,990 | $ 511,740 | $ 412,148 | $ 399,593 | $ 387,352 | |||
Commerce Financial Holdings, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Common stock surrendered | $ 100 | ||||||||
Commerce Financial Holdings, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Termination costs | $ 500 | ||||||||
Merger Agreement | Choice Bancorp Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Common stock issued for consideration (in shares) | shares | 1,184,102 | ||||||||
Number of common stock for each outstanding share of common stock | 0.00497 | ||||||||
Value of common stock issued for consideration | $ 79,800 | ||||||||
Price per share for stock issued in consideration (in dollars per share) | $ / 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 | ||||||||
Amount of addition in loans | 348,000 | ||||||||
Amount of addition in deposits | 289,000 | ||||||||
Acquisition | 45,000 | ||||||||
Merger Agreement | Choice Bancorp Inc. | Core deposit intangibles | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets assumed | $ 1,700 | ||||||||
Choice Bancorp Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Percentage of assets represented by acquiree | 0.12 | ||||||||
Advantage Community Bancshares, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Assets | 160,000 | ||||||||
Loans | 89,000 | ||||||||
Deposits | 135,000 | ||||||||
Equity | $ 21,000 | ||||||||
Number Of Branches | Branch | 4 |
Earnings per Common Share - Cal
Earnings per Common Share - Calculations for basic and diluted earnings (loss) per common share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to Nicolet Bankshares, Inc. | $ 13,478 | $ 18,549 | $ 24,033 | $ 28,816 |
Weighted average common shares outstanding (in shares) | 10,417,226 | 9,374,348 | 10,466,590 | 9,417,676 |
Effect of dilutive common stock awards (in shares) | 103,000 | 318,000 | 192,000 | 293,000 |
Diluted weighted average common shares outstanding (in shares) | 10,519,739 | 9,692,378 | 10,659,318 | 9,710,827 |
Basic earnings per common share (in dollars per share) | $ 1.29 | $ 1.98 | $ 2.30 | $ 3.06 |
Diluted earnings per common share (in dollars per share) | $ 1.28 | $ 1.91 | $ 2.25 | $ 2.97 |
Earnings per Common Share - Nar
Earnings per Common Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Shares excluded from calculation of earnings per common share (in shares) | 0.2 | 0.1 | 0.1 | 0.1 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares were available for grant under two plans (in shares) | 1,400,000 | |
Shares surrendered to the Company (in shares) | 17,699 | |
Numbers of shares surrendered (in shares) | 1,407 | |
Stock-based employee compensation | $ 2.6 | $ 2.2 |
Unrecognized compensation cost | $ 11.6 | |
Remaining vesting period over which cost expected to be recognized | 3 years | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total intrinsic value of options exercised | $ 1.9 | 5 |
Tax benefit for impact of share based compensation | $ 0.3 | 0.9 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock grant (in shares) | 10,450 | |
Restricted Stock | Director | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based employee compensation | $ 0.4 | $ 0.3 |
Restricted stock grant (in shares) | 7,950 | 4,257 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted average assumptions (Details) - Stock Incentive Plan - Stock Options - $ / shares | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Expected volatility | 25.00% | 25.00% |
Risk-free interest rate | 1.67% | 2.37% |
Expected average life (in years) | 7 years | 7 years |
Weighted average per share fair value of options (in usd per share) | $ 21.83 | $ 19.23 |
Stock-Based Compensation - Acti
Stock-Based Compensation - Activity of stock incentive plans for options (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($)$ / sharesshares | |
Option Shares Outstanding | |
Forfeited (in shares) | (17,699) |
Stock Incentive Plan | Stock Options | |
Option Shares Outstanding | |
Beginning balance outstanding (in shares) | 1,443,733 |
Granted (in shares) | 39,500 |
Exercise of stock options (in shares) | (43,552) |
Forfeited (in shares) | 0 |
Ending balance outstanding (in shares) | 1,439,681 |
Exercisable (in shares) | 726,931 |
Weighted Average Exercise Price | |
Beginning balance outstanding (in usd per share) | $ / shares | $ 48.75 |
Granted (in usd per share) | $ / shares | 71.89 |
Exercise of stock options (in usd per share) | $ / shares | 23.07 |
Forfeited (in usd per share) | $ / shares | 0 |
Ending balance outstanding (in usd per share) | $ / shares | 50.16 |
Exercisable (in usd per share) | $ / shares | $ 44.59 |
Weighted average remaining life outstanding (in years) | 7 years 1 month 6 days |
Weighted average remaining life exercisable (in years) | 6 years 4 months 24 days |
Aggregate intrinsic value outstanding | $ | $ 10,601 |
Aggregate intrinsic value exercisable | $ | $ 7,527 |
Stock-Based Compensation - Ac_2
Stock-Based Compensation - Activity of restricted stock awards (Details) - Restricted Stock | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Weighted-Average Grant Date Fair Value | |
Beginning balance outstanding (in usd per share) | $ / shares | $ 44.94 |
Granted (in usd per share) | $ / shares | 55.52 |
Vested (in usd per share) | $ / shares | 43.66 |
Forfeited (in usd per share) | $ / shares | 0 |
Ending balance outstanding (in usd per share) | $ / shares | $ 51.55 |
Restricted Shares Outstanding | |
Beginning balance outstanding (in shares) | shares | 22,521 |
Granted (in shares) | shares | 10,450 |
Vested (in shares) | shares | (13,615) |
Forfeited (in shares) | shares | 0 |
Ending balance outstanding (in shares) | shares | 19,356 |
Securities Available for Sale -
Securities Available for Sale - Amortized costs and fair values of debt securities available for sale (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 492,606 | $ 443,249 |
Gross Unrealized Gains | 18,215 | 6,967 |
Gross Unrealized Losses | 12 | 914 |
Fair Value | $ 510,809 | $ 449,302 |
Fair Value as % of Total | 100.00% | 100.00% |
U.S. government agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 63,512 | $ 16,516 |
Gross Unrealized Gains | 338 | 4 |
Gross Unrealized Losses | 0 | 60 |
Fair Value | $ 63,850 | $ 16,460 |
Fair Value as % of Total | 12.00% | 4.00% |
State, county and municipals | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 162,239 | $ 155,501 |
Gross Unrealized Gains | 4,261 | 1,049 |
Gross Unrealized Losses | 2 | 157 |
Fair Value | $ 166,498 | $ 156,393 |
Fair Value as % of Total | 33.00% | 35.00% |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 188,819 | $ 193,223 |
Gross Unrealized Gains | 8,087 | 2,492 |
Gross Unrealized Losses | 10 | 697 |
Fair Value | $ 196,896 | $ 195,018 |
Fair Value as % of Total | 39.00% | 43.00% |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 78,036 | $ 78,009 |
Gross Unrealized Gains | 5,529 | 3,422 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 83,565 | $ 81,431 |
Fair Value as % of Total | 16.00% | 18.00% |
Securities Available for Sale_2
Securities Available for Sale - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Jun. 30, 2020 | |
Debt Securities, Available-for-sale [Abstract] | ||
Securities AFS pledged as collateral | $ 166,000,000 | $ 156,000,000 |
Debt Securities, Available-for-sale [Line Items] | ||
Allowance for credit loss on securities AFS | 0 | |
Other-than-temporary impairment losses charged to earnings | 0 | |
Available-for-sale Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Interest receivable | $ 2,200,000 | $ 2,100,000 |
Securities Available for Sale_3
Securities Available for Sale - Gross unrealized losses and the related fair value of securities available for sale (Details) $ in Thousands | Jun. 30, 2020USD ($)Security | Dec. 31, 2019USD ($)Security |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | $ 2,211 | $ 73,112 |
Less than 12 months, unrealized losses | 3 | 379 |
12 months or more, fair value | 762 | 65,967 |
12 months or more, unrealized losses | 9 | 535 |
Total, fair value | 2,973 | 139,079 |
Total, unrealized losses | $ 12 | $ 914 |
Total, number of securities | Security | 25 | 212 |
U.S. government agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | $ 1,035 | |
Less than 12 months, unrealized losses | 2 | |
12 months or more, fair value | 11,091 | |
12 months or more, unrealized losses | 58 | |
Total, fair value | 12,126 | |
Total, unrealized losses | $ 60 | |
Total, number of securities | Security | 6 | |
State, county and municipals | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | $ 882 | $ 22,451 |
Less than 12 months, unrealized losses | 2 | 132 |
12 months or more, fair value | 0 | 7,605 |
12 months or more, unrealized losses | 0 | 25 |
Total, fair value | 882 | 30,056 |
Total, unrealized losses | $ 2 | $ 157 |
Total, number of securities | Security | 2 | 56 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | $ 1,329 | $ 49,626 |
Less than 12 months, unrealized losses | 1 | 245 |
12 months or more, fair value | 762 | 47,271 |
12 months or more, unrealized losses | 9 | 452 |
Total, fair value | 2,091 | 96,897 |
Total, unrealized losses | $ 10 | $ 697 |
Total, number of securities | Security | 23 | 150 |
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 | Jun. 30, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Due in less than one year | $ 28,148 | |
Due in one year through five years | 217,289 | |
Due after five years through ten years | 42,898 | |
Due after ten years | 15,452 | |
Single maturity date, amortized cost | 303,787 | |
Amortized Cost | 492,606 | $ 443,249 |
Fair Value | ||
Due in less than one year | 28,294 | |
Due in one year through five years | 224,722 | |
Due after five years through ten years | 44,561 | |
Due after ten years | 16,336 | |
Single maturity date, fair value | 313,913 | |
Fair Value | 510,809 | 449,302 |
Mortgage-backed securities | ||
Amortized Cost | ||
Without single maturity date, amortized cost | 188,819 | |
Amortized Cost | 188,819 | 193,223 |
Fair Value | ||
Without single maturity date, fair value | 196,896 | |
Fair Value | $ 196,896 | $ 195,018 |
Securities Available for Sale_5
Securities Available for Sale - Proceeds from the sale of securities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Debt Securities, Available-for-sale [Abstract] | ||
Gross gains | $ 164 | $ 152 |
Gross losses | 0 | (120) |
Gains (losses) on sales of securities AFS, net | 164 | 32 |
Proceeds from sales of securities AFS | $ 9,232 | $ 13,240 |
Loans, Allowance for Credit L_3
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Summary of loan composition (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 2,821,501 | $ 2,573,751 | ||
Less allowance for credit losses - Loans (“ACL-Loans”) | 29,130 | 13,972 | $ 13,571 | $ 13,153 |
Loans, net | $ 2,792,371 | $ 2,559,779 | ||
Percent of total | 100.00% | 100.00% | ||
Allowance for credit losses - Loans to loans | 1.03% | 0.54% | ||
Retail & other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 29,812 | $ 30,211 | ||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 531 | $ 344 | 304 | |
Percent of total | 1.00% | 1.00% | ||
Commercial portfolio segment | Commercial & industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 729,264 | $ 806,189 | ||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 10,203 | $ 5,471 | 5,271 | |
Percent of total | 26.00% | 31.00% | ||
Commercial portfolio segment | Paycheck Protection Program (“PPP”) loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 329,157 | $ 0 | ||
Percent of total | 12.00% | 0.00% | ||
Commercial portfolio segment | Owner-occupied commercial real estate (“CRE”) | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 495,722 | $ 496,372 | ||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 5,178 | $ 3,010 | 2,847 | |
Percent of total | 17.00% | 19.00% | ||
Commercial portfolio segment | Agricultural | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 99,020 | $ 95,450 | ||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 1,339 | $ 579 | 422 | |
Percent of total | 3.00% | 4.00% | ||
Commercial real estate portfolio segment | CRE investment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 447,900 | $ 443,218 | ||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 5,092 | $ 1,600 | 1,470 | |
Percent of total | 16.00% | 17.00% | ||
Commercial real estate portfolio segment | Construction & land development | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 107,277 | $ 92,970 | ||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 790 | $ 414 | 510 | |
Percent of total | 4.00% | 4.00% | ||
Residential | Residential construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 51,332 | $ 54,403 | ||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 513 | $ 368 | 211 | |
Percent of total | 2.00% | 2.00% | ||
Residential | Residential first mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 417,694 | $ 432,167 | ||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 4,307 | $ 1,669 | 1,646 | |
Percent of total | 15.00% | 17.00% | ||
Residential | Residential junior mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 114,323 | $ 122,771 | ||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 1,177 | $ 517 | $ 472 | |
Percent of total | 4.00% | 5.00% |
Loans, Allowance for Credit L_4
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Narrative (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020USD ($)Loan | Dec. 31, 2019USD ($)Loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Material loans criteria for ALLL adequacy calculation | $ 250,000 | |
Number of loans classified as troubled debt | Loan | 5 | 5 |
Troubled debt restructuring current outstanding balance | $ 1,100,000 | $ 1,100,000 |
Pre-modification balance | 1,700,000 | 1,400,000 |
Financing receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Interest receivable | $ 9,000,000 | $ 7,000,000 |
Loans, Allowance for Credit L_5
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Summary of allowance for loan losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | $ 13,972 | $ 13,153 | $ 13,153 | ||
Provision for credit losses | $ 3,000 | $ 300 | 6,000 | 500 | 1,200 |
Charge-offs | (216) | (232) | (927) | ||
Recoveries | 89 | 150 | 546 | ||
Net (charge-offs) recoveries | (127) | (82) | (381) | ||
Ending balance | $ 29,130 | $ 13,571 | 29,130 | $ 13,571 | 13,972 |
Adoption of CECL | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 8,488 | ||||
Ending balance | 8,488 | ||||
Initial PCD ACL | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 797 | ||||
Ending balance | 797 | ||||
Total impact for adoption of CECL | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | $ 9,285 | ||||
Ending balance | $ 9,285 |
Loans, Allowance for Credit L_6
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Summary of changes in ACL-Loans by portfolio segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
ACL-Loans | |||||
Beginning balance | $ 13,972 | $ 13,153 | $ 13,153 | ||
Provision | $ 3,000 | $ 300 | 6,000 | 500 | 1,200 |
Charge-offs | (216) | (232) | (927) | ||
Recoveries | 89 | 150 | 546 | ||
Net (charge-offs) recoveries | (127) | (82) | (381) | ||
Ending balance | 29,130 | $ 13,571 | $ 29,130 | 13,571 | $ 13,972 |
As % of ACL-Loans | 100.00% | 100.00% | |||
Retail & other | |||||
ACL-Loans | |||||
Beginning balance | $ 344 | 304 | $ 304 | ||
Provision | 142 | 338 | |||
Charge-offs | (99) | (347) | |||
Recoveries | 10 | 49 | |||
Net (charge-offs) recoveries | (89) | (298) | |||
Ending balance | 531 | $ 531 | $ 344 | ||
As % of ACL-Loans | 2.00% | 2.00% | |||
Commercial portfolio segment | Commercial & industrial | |||||
ACL-Loans | |||||
Beginning balance | $ 5,471 | 5,271 | $ 5,271 | ||
Provision | 1,010 | (61) | |||
Charge-offs | (97) | (159) | |||
Recoveries | 60 | 420 | |||
Net (charge-offs) recoveries | (37) | 261 | |||
Ending balance | 10,203 | $ 10,203 | $ 5,471 | ||
As % of ACL-Loans | 35.00% | 39.00% | |||
Commercial portfolio segment | Owner-occupied commercial real estate (“CRE”) | |||||
ACL-Loans | |||||
Beginning balance | $ 3,010 | 2,847 | $ 2,847 | ||
Provision | 919 | 254 | |||
Charge-offs | 0 | (93) | |||
Recoveries | 0 | 2 | |||
Net (charge-offs) recoveries | 0 | (91) | |||
Ending balance | 5,178 | $ 5,178 | $ 3,010 | ||
As % of ACL-Loans | 18.00% | 22.00% | |||
Commercial portfolio segment | Agricultural | |||||
ACL-Loans | |||||
Beginning balance | $ 579 | 422 | $ 422 | ||
Provision | 399 | 157 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Net (charge-offs) recoveries | 0 | 0 | |||
Ending balance | 1,339 | $ 1,339 | $ 579 | ||
As % of ACL-Loans | 4.00% | 4.00% | |||
Commercial real estate portfolio segment | CRE investment | |||||
ACL-Loans | |||||
Beginning balance | $ 1,600 | 1,470 | $ 1,470 | ||
Provision | 1,542 | 130 | |||
Charge-offs | (20) | 0 | |||
Recoveries | 0 | 0 | |||
Net (charge-offs) recoveries | (20) | 0 | |||
Ending balance | 5,092 | $ 5,092 | $ 1,600 | ||
As % of ACL-Loans | 17.00% | 11.00% | |||
Commercial real estate portfolio segment | Construction & land development | |||||
ACL-Loans | |||||
Beginning balance | $ 414 | 510 | $ 510 | ||
Provision | 325 | (96) | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Net (charge-offs) recoveries | 0 | 0 | |||
Ending balance | 790 | $ 790 | $ 414 | ||
As % of ACL-Loans | 3.00% | 3.00% | |||
Residential | Residential first mortgage | |||||
ACL-Loans | |||||
Beginning balance | $ 1,669 | 1,646 | $ 1,646 | ||
Provision | 1,348 | 9 | |||
Charge-offs | 0 | (22) | |||
Recoveries | 4 | 36 | |||
Net (charge-offs) recoveries | 4 | 14 | |||
Ending balance | 4,307 | $ 4,307 | $ 1,669 | ||
As % of ACL-Loans | 15.00% | 12.00% | |||
Residential | Residential junior mortgage | |||||
ACL-Loans | |||||
Beginning balance | $ 517 | 472 | $ 472 | ||
Provision | 294 | 86 | |||
Charge-offs | 0 | (80) | |||
Recoveries | 15 | 39 | |||
Net (charge-offs) recoveries | 15 | (41) | |||
Ending balance | 1,177 | $ 1,177 | $ 517 | ||
As % of ACL-Loans | 4.00% | 4.00% | |||
Residential | Residential construction | |||||
ACL-Loans | |||||
Beginning balance | $ 368 | $ 211 | $ 211 | ||
Provision | 21 | 383 | |||
Charge-offs | 0 | (226) | |||
Recoveries | 0 | 0 | |||
Net (charge-offs) recoveries | 0 | (226) | |||
Ending balance | $ 513 | $ 513 | $ 368 | ||
As % of ACL-Loans | 2.00% | 3.00% | |||
Adoption of CECL | |||||
ACL-Loans | |||||
Beginning balance | $ 8,488 | ||||
Ending balance | $ 8,488 | ||||
Adoption of CECL | Retail & other | |||||
ACL-Loans | |||||
Beginning balance | 134 | ||||
Ending balance | 134 | ||||
Adoption of CECL | Commercial portfolio segment | Commercial & industrial | |||||
ACL-Loans | |||||
Beginning balance | 2,962 | ||||
Ending balance | 2,962 | ||||
Adoption of CECL | Commercial portfolio segment | Owner-occupied commercial real estate (“CRE”) | |||||
ACL-Loans | |||||
Beginning balance | 1,249 | ||||
Ending balance | 1,249 | ||||
Adoption of CECL | Commercial portfolio segment | Agricultural | |||||
ACL-Loans | |||||
Beginning balance | 361 | ||||
Ending balance | 361 | ||||
Adoption of CECL | Commercial real estate portfolio segment | CRE investment | |||||
ACL-Loans | |||||
Beginning balance | 1,970 | ||||
Ending balance | 1,970 | ||||
Adoption of CECL | Commercial real estate portfolio segment | Construction & land development | |||||
ACL-Loans | |||||
Beginning balance | 51 | ||||
Ending balance | 51 | ||||
Adoption of CECL | Residential | Residential first mortgage | |||||
ACL-Loans | |||||
Beginning balance | 1,286 | ||||
Ending balance | 1,286 | ||||
Adoption of CECL | Residential | Residential junior mortgage | |||||
ACL-Loans | |||||
Beginning balance | 351 | ||||
Ending balance | 351 | ||||
Adoption of CECL | Residential | Residential construction | |||||
ACL-Loans | |||||
Beginning balance | 124 | ||||
Ending balance | 124 | ||||
Initial PCD ACL | |||||
ACL-Loans | |||||
Beginning balance | 797 | ||||
Ending balance | 797 | ||||
Initial PCD ACL | Retail & other | |||||
ACL-Loans | |||||
Beginning balance | 0 | ||||
Ending balance | 0 | ||||
Initial PCD ACL | Commercial portfolio segment | Commercial & industrial | |||||
ACL-Loans | |||||
Beginning balance | 797 | ||||
Ending balance | 797 | ||||
Initial PCD ACL | Commercial portfolio segment | Owner-occupied commercial real estate (“CRE”) | |||||
ACL-Loans | |||||
Beginning balance | 0 | ||||
Ending balance | 0 | ||||
Initial PCD ACL | Commercial portfolio segment | Agricultural | |||||
ACL-Loans | |||||
Beginning balance | 0 | ||||
Ending balance | 0 | ||||
Initial PCD ACL | Commercial real estate portfolio segment | CRE investment | |||||
ACL-Loans | |||||
Beginning balance | 0 | ||||
Ending balance | 0 | ||||
Initial PCD ACL | Commercial real estate portfolio segment | Construction & land development | |||||
ACL-Loans | |||||
Beginning balance | 0 | ||||
Ending balance | 0 | ||||
Initial PCD ACL | Residential | Residential first mortgage | |||||
ACL-Loans | |||||
Beginning balance | 0 | ||||
Ending balance | 0 | ||||
Initial PCD ACL | Residential | Residential junior mortgage | |||||
ACL-Loans | |||||
Beginning balance | 0 | ||||
Ending balance | 0 | ||||
Initial PCD ACL | Residential | Residential construction | |||||
ACL-Loans | |||||
Beginning balance | $ 0 | ||||
Ending balance | $ 0 |
Loans, Allowance for Credit L_7
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Collateral dependent loans by portfolio segment (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | $ 9,155 |
Without an Allowance | 3,282 |
With an Allowance | 5,873 |
Allowance Allocation | 1,379 |
Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 4,632 |
Other Business Assets | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 4,523 |
Retail & other | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Without an Allowance | 0 |
With an Allowance | 0 |
Allowance Allocation | 0 |
Retail & other | Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Retail & other | Other Business Assets | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Commercial portfolio segment | Commercial & industrial | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 3,688 |
Without an Allowance | 0 |
With an Allowance | 3,688 |
Allowance Allocation | 1,231 |
Commercial portfolio segment | Commercial & industrial | Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Commercial portfolio segment | Commercial & industrial | Other Business Assets | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 3,688 |
Commercial portfolio segment | PPP loans | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Without an Allowance | 0 |
With an Allowance | 0 |
Allowance Allocation | 0 |
Commercial portfolio segment | PPP loans | Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Commercial portfolio segment | PPP loans | Other Business Assets | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Commercial portfolio segment | Owner-occupied commercial real estate (“CRE”) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 2,524 |
Without an Allowance | 339 |
With an Allowance | 2,185 |
Allowance Allocation | 148 |
Commercial portfolio segment | Owner-occupied commercial real estate (“CRE”) | Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 2,524 |
Commercial portfolio segment | Owner-occupied commercial real estate (“CRE”) | Other Business Assets | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Commercial portfolio segment | Agricultural | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 1,435 |
Without an Allowance | 1,435 |
With an Allowance | 0 |
Allowance Allocation | 0 |
Commercial portfolio segment | Agricultural | Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 600 |
Commercial portfolio segment | Agricultural | Other Business Assets | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 835 |
Commercial real estate portfolio segment | CRE investment | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 975 |
Without an Allowance | 975 |
With an Allowance | 0 |
Allowance Allocation | 0 |
Commercial real estate portfolio segment | CRE investment | Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 975 |
Commercial real estate portfolio segment | CRE investment | Other Business Assets | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Commercial real estate portfolio segment | Construction & land development | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 533 |
Without an Allowance | 533 |
With an Allowance | 0 |
Allowance Allocation | 0 |
Commercial real estate portfolio segment | Construction & land development | Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 533 |
Commercial real estate portfolio segment | Construction & land development | Other Business Assets | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Residential | Residential construction | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Without an Allowance | 0 |
With an Allowance | 0 |
Allowance Allocation | 0 |
Residential | Residential construction | Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Residential | Residential construction | Other Business Assets | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Residential | Residential first mortgage | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Without an Allowance | 0 |
With an Allowance | 0 |
Allowance Allocation | 0 |
Residential | Residential first mortgage | Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Residential | Residential first mortgage | Other Business Assets | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Residential | Residential junior mortgage | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Without an Allowance | 0 |
With an Allowance | 0 |
Allowance Allocation | 0 |
Residential | Residential junior mortgage | Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Residential | Residential junior mortgage | Other Business Assets | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | $ 0 |
Loans, Allowance for Credit L_8
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Impaired loans by portfolio segment (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment | $ 16,891 |
Unpaid Principal Balance | 20,300 |
Related Allowance | 741 |
Average Recorded Investment | 16,998 |
Interest Income Recognized | 2,063 |
Retail & other | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment | 12 |
Unpaid Principal Balance | 12 |
Related Allowance | 0 |
Average Recorded Investment | 12 |
Interest Income Recognized | 0 |
Commercial portfolio segment | Commercial & industrial | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment | 5,932 |
Unpaid Principal Balance | 7,950 |
Related Allowance | 625 |
Average Recorded Investment | 5,405 |
Interest Income Recognized | 1,170 |
Commercial portfolio segment | Owner-occupied CRE | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment | 3,430 |
Unpaid Principal Balance | 4,016 |
Related Allowance | 0 |
Average Recorded Investment | 3,677 |
Interest Income Recognized | 256 |
Commercial portfolio segment | Agricultural | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment | 2,134 |
Unpaid Principal Balance | 2,172 |
Related Allowance | 116 |
Average Recorded Investment | 2,311 |
Interest Income Recognized | 37 |
Commercial real estate portfolio segment | CRE investment | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment | 2,426 |
Unpaid Principal Balance | 2,790 |
Related Allowance | 0 |
Average Recorded Investment | 2,497 |
Interest Income Recognized | 364 |
Commercial real estate portfolio segment | Construction & land development | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment | 382 |
Unpaid Principal Balance | 382 |
Related Allowance | 0 |
Average Recorded Investment | 460 |
Interest Income Recognized | 0 |
Residential | Residential construction | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment | 0 |
Unpaid Principal Balance | 0 |
Related Allowance | 0 |
Average Recorded Investment | 0 |
Interest Income Recognized | 0 |
Residential | Residential first mortgage | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment | 2,357 |
Unpaid Principal Balance | 2,629 |
Related Allowance | 0 |
Average Recorded Investment | 2,412 |
Interest Income Recognized | 178 |
Residential | Residential junior mortgage | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment | 218 |
Unpaid Principal Balance | 349 |
Related Allowance | 0 |
Average Recorded Investment | 224 |
Interest Income Recognized | $ 58 |
Loans, Allowance for Credit L_9
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Summary of loans by past due status (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Current | $ 2,808,051 | $ 2,552,360 |
Total | $ 2,821,501 | $ 2,573,751 |
Percent of current loans | 99.50% | 99.20% |
Percent of total loans | 100.00% | 100.00% |
30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | $ 1,452 | $ 7,269 |
Percent past due | 0.10% | 0.30% |
90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | $ 11,998 | $ 14,122 |
Percent past due | 0.40% | 0.50% |
Retail & other | ||
Financing Receivable, Past Due [Line Items] | ||
Current | $ 29,727 | $ 30,100 |
Total | 29,812 | 30,211 |
Retail & other | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 85 | 110 |
Retail & other | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 0 | 1 |
Commercial portfolio segment | Commercial & industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 724,960 | 798,211 |
Total | 729,264 | 806,189 |
Commercial portfolio segment | Commercial & industrial | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 162 | 1,729 |
Commercial portfolio segment | Commercial & industrial | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 4,142 | 6,249 |
Commercial portfolio segment | PPP loans | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 329,157 | |
Total | 329,157 | 0 |
Commercial portfolio segment | PPP loans | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 0 | |
Commercial portfolio segment | PPP loans | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 0 | |
Commercial portfolio segment | Owner-occupied CRE | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 492,646 | 492,949 |
Total | 495,722 | 496,372 |
Commercial portfolio segment | Owner-occupied CRE | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 71 | 112 |
Commercial portfolio segment | Owner-occupied CRE | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 3,005 | 3,311 |
Commercial portfolio segment | Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 97,274 | 93,552 |
Total | 99,020 | 95,450 |
Commercial portfolio segment | Agricultural | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 35 | 0 |
Commercial portfolio segment | Agricultural | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 1,711 | 1,898 |
Commercial real estate portfolio segment | CRE investment | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 446,925 | 442,145 |
Total | 447,900 | 443,218 |
Commercial real estate portfolio segment | CRE investment | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 0 | 0 |
Commercial real estate portfolio segment | CRE investment | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 975 | 1,073 |
Commercial real estate portfolio segment | Construction & land development | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 106,548 | 90,887 |
Total | 107,277 | 92,970 |
Commercial real estate portfolio segment | Construction & land development | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 196 | 2,063 |
Commercial real estate portfolio segment | Construction & land development | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 533 | 20 |
Residential | Residential construction | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 50,783 | 54,101 |
Total | 51,332 | 54,403 |
Residential | Residential construction | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 549 | 302 |
Residential | Residential construction | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 0 | 0 |
Residential | Residential first mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 416,273 | 428,341 |
Total | 417,694 | 432,167 |
Residential | Residential first mortgage | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 354 | 2,736 |
Residential | Residential first mortgage | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 1,067 | 1,090 |
Residential | Residential junior mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 113,758 | 122,074 |
Total | 114,323 | 122,771 |
Residential | Residential junior mortgage | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 0 | 217 |
Residential | Residential junior mortgage | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | $ 565 | $ 480 |
Loans, Allowance for Credit _10
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Nonaccrual loans by portfolio segment (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 11,998 | $ 14,122 |
Percent of total | 100.00% | 100.00% |
Percent of total loans | 0.40% | 0.50% |
Retail & other | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 0 | $ 1 |
Percent of total | 0.00% | 0.00% |
Commercial portfolio segment | Commercial & industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 4,142 | $ 6,249 |
Percent of total | 35.00% | 44.00% |
Commercial portfolio segment | PPP loans | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 0 | $ 0 |
Percent of total | 0.00% | 0.00% |
Commercial portfolio segment | Owner-occupied CRE | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 3,005 | $ 3,311 |
Percent of total | 25.00% | 23.00% |
Commercial portfolio segment | Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 1,711 | $ 1,898 |
Percent of total | 14.00% | 14.00% |
Commercial real estate portfolio segment | CRE investment | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 975 | $ 1,073 |
Percent of total | 8.00% | 8.00% |
Commercial real estate portfolio segment | Construction & land development | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 533 | $ 20 |
Percent of total | 4.00% | 0.00% |
Residential | Residential construction | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 0 | $ 0 |
Percent of total | 0.00% | 0.00% |
Residential | Residential first mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 1,067 | $ 1,090 |
Percent of total | 9.00% | 8.00% |
Residential | Residential junior mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 565 | $ 480 |
Percent of total | 5.00% | 3.00% |
Loans, Allowance for Credit _11
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Summary of loans by loan risk categories (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | $ 589,200 | |
Origination Year - 2019 | 469,044 | |
Origination Year - 2018 | 334,235 | |
Origination Year - 2017 | 292,819 | |
Origination Year - 2016 | 185,993 | |
Origination Year - Prior | 602,753 | |
Revolving | 345,788 | |
Revolving to Term | 1,669 | |
Total | $ 2,821,501 | $ 2,573,751 |
Percent of total | 100.00% | 100.00% |
Grades 1- 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 2,687,636 | $ 2,457,922 |
Percent of total | 95.20% | 95.50% |
Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 75,378 | $ 63,966 |
Percent of total | 2.70% | 2.50% |
Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 16,701 | $ 15,152 |
Percent of total | 0.60% | 0.60% |
Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 41,786 | $ 36,711 |
Percent of total | 1.50% | 1.40% |
Retail & other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | $ 5,090 | |
Origination Year - 2019 | 6,205 | |
Origination Year - 2018 | 2,403 | |
Origination Year - 2017 | 1,869 | |
Origination Year - 2016 | 941 | |
Origination Year - Prior | 1,522 | |
Revolving | 11,782 | |
Revolving to Term | 0 | |
Total | 29,812 | $ 30,211 |
Retail & other | Grades 1- 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 5,090 | |
Origination Year - 2019 | 6,205 | |
Origination Year - 2018 | 2,403 | |
Origination Year - 2017 | 1,869 | |
Origination Year - 2016 | 941 | |
Origination Year - Prior | 1,522 | |
Revolving | 11,782 | |
Revolving to Term | 0 | |
Total | 29,812 | 30,210 |
Retail & other | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 0 | |
Origination Year - 2016 | 0 | |
Origination Year - Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 0 | 0 |
Retail & other | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 0 | |
Origination Year - 2016 | 0 | |
Origination Year - Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 0 | 0 |
Retail & other | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 0 | |
Origination Year - 2016 | 0 | |
Origination Year - Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 0 | 1 |
Commercial portfolio segment | Commercial & industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 399,589 | |
Origination Year - 2019 | 156,822 | |
Origination Year - 2018 | 119,210 | |
Origination Year - 2017 | 76,394 | |
Origination Year - 2016 | 30,818 | |
Origination Year - Prior | 67,248 | |
Revolving | 208,340 | |
Revolving to Term | 0 | |
Total | 1,058,421 | |
Commercial portfolio segment | Commercial & industrial | Grades 1- 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 397,577 | |
Origination Year - 2019 | 150,186 | |
Origination Year - 2018 | 109,524 | |
Origination Year - 2017 | 68,689 | |
Origination Year - 2016 | 28,748 | |
Origination Year - Prior | 58,379 | |
Revolving | 183,671 | |
Revolving to Term | 0 | |
Total | 996,774 | |
Commercial portfolio segment | Commercial & industrial | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 229 | |
Origination Year - 2019 | 5,398 | |
Origination Year - 2018 | 7,778 | |
Origination Year - 2017 | 625 | |
Origination Year - 2016 | 1,524 | |
Origination Year - Prior | 2,777 | |
Revolving | 16,707 | |
Revolving to Term | 0 | |
Total | 35,038 | |
Commercial portfolio segment | Commercial & industrial | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 51 | |
Origination Year - 2019 | 23 | |
Origination Year - 2018 | 796 | |
Origination Year - 2017 | 5,698 | |
Origination Year - 2016 | 1 | |
Origination Year - Prior | 35 | |
Revolving | 4,136 | |
Revolving to Term | 0 | |
Total | 10,740 | |
Commercial portfolio segment | Commercial & industrial | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 1,732 | |
Origination Year - 2019 | 1,215 | |
Origination Year - 2018 | 1,112 | |
Origination Year - 2017 | 1,382 | |
Origination Year - 2016 | 545 | |
Origination Year - Prior | 6,057 | |
Revolving | 3,826 | |
Revolving to Term | 0 | |
Total | 15,869 | |
Commercial portfolio segment | Commercial & industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 729,264 | 806,189 |
Commercial portfolio segment | Commercial & industrial | Grades 1- 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 667,617 | 765,073 |
Commercial portfolio segment | Commercial & industrial | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 35,038 | 20,199 |
Commercial portfolio segment | Commercial & industrial | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 10,740 | 7,663 |
Commercial portfolio segment | Commercial & industrial | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 15,869 | 13,254 |
Commercial portfolio segment | Owner-occupied commercial real estate (“CRE”) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 36,065 | |
Origination Year - 2019 | 68,336 | |
Origination Year - 2018 | 84,287 | |
Origination Year - 2017 | 73,477 | |
Origination Year - 2016 | 51,215 | |
Origination Year - Prior | 180,355 | |
Revolving | 1,987 | |
Revolving to Term | 0 | |
Total | 495,722 | 496,372 |
Commercial portfolio segment | Owner-occupied commercial real estate (“CRE”) | Grades 1- 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 36,065 | |
Origination Year - 2019 | 67,425 | |
Origination Year - 2018 | 82,360 | |
Origination Year - 2017 | 62,980 | |
Origination Year - 2016 | 49,060 | |
Origination Year - Prior | 164,982 | |
Revolving | 1,499 | |
Revolving to Term | 0 | |
Total | 464,371 | 464,661 |
Commercial portfolio segment | Owner-occupied commercial real estate (“CRE”) | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 574 | |
Origination Year - 2018 | 1,646 | |
Origination Year - 2017 | 6,572 | |
Origination Year - 2016 | 379 | |
Origination Year - Prior | 7,086 | |
Revolving | 488 | |
Revolving to Term | 0 | |
Total | 16,745 | 20,855 |
Commercial portfolio segment | Owner-occupied commercial real estate (“CRE”) | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 1,736 | |
Origination Year - 2016 | 0 | |
Origination Year - Prior | 734 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 2,470 | 953 |
Commercial portfolio segment | Owner-occupied commercial real estate (“CRE”) | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 337 | |
Origination Year - 2018 | 281 | |
Origination Year - 2017 | 2,189 | |
Origination Year - 2016 | 1,776 | |
Origination Year - Prior | 7,553 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 12,136 | 9,903 |
Commercial portfolio segment | Agricultural | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 8,786 | |
Origination Year - 2019 | 5,859 | |
Origination Year - 2018 | 7,336 | |
Origination Year - 2017 | 10,713 | |
Origination Year - 2016 | 4,521 | |
Origination Year - Prior | 40,318 | |
Revolving | 21,487 | |
Revolving to Term | 0 | |
Total | 99,020 | 95,450 |
Commercial portfolio segment | Agricultural | Grades 1- 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 8,766 | |
Origination Year - 2019 | 5,484 | |
Origination Year - 2018 | 7,266 | |
Origination Year - 2017 | 9,697 | |
Origination Year - 2016 | 2,240 | |
Origination Year - Prior | 29,722 | |
Revolving | 20,775 | |
Revolving to Term | 0 | |
Total | 83,950 | 77,082 |
Commercial portfolio segment | Agricultural | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 20 | |
Origination Year - 2019 | 375 | |
Origination Year - 2018 | 36 | |
Origination Year - 2017 | 573 | |
Origination Year - 2016 | 689 | |
Origination Year - Prior | 4,772 | |
Revolving | 633 | |
Revolving to Term | 0 | |
Total | 7,098 | 6,785 |
Commercial portfolio segment | Agricultural | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 328 | |
Origination Year - 2016 | 392 | |
Origination Year - Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 720 | 3,275 |
Commercial portfolio segment | Agricultural | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 34 | |
Origination Year - 2017 | 115 | |
Origination Year - 2016 | 1,200 | |
Origination Year - Prior | 5,824 | |
Revolving | 79 | |
Revolving to Term | 0 | |
Total | 7,252 | 8,308 |
Commercial portfolio segment | PPP loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 329,157 | 0 |
Commercial portfolio segment | PPP loans | Grades 1- 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 329,157 | |
Commercial portfolio segment | PPP loans | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | |
Commercial portfolio segment | PPP loans | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | |
Commercial portfolio segment | PPP loans | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | |
Commercial real estate portfolio segment | CRE investment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 42,819 | |
Origination Year - 2019 | 76,792 | |
Origination Year - 2018 | 41,687 | |
Origination Year - 2017 | 71,399 | |
Origination Year - 2016 | 41,052 | |
Origination Year - Prior | 167,803 | |
Revolving | 6,348 | |
Revolving to Term | 0 | |
Total | 447,900 | 443,218 |
Commercial real estate portfolio segment | CRE investment | Grades 1- 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 42,819 | |
Origination Year - 2019 | 76,688 | |
Origination Year - 2018 | 41,581 | |
Origination Year - 2017 | 69,179 | |
Origination Year - 2016 | 39,866 | |
Origination Year - Prior | 158,663 | |
Revolving | 6,303 | |
Revolving to Term | 0 | |
Total | 435,099 | 430,794 |
Commercial real estate portfolio segment | CRE investment | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 106 | |
Origination Year - 2017 | 1,307 | |
Origination Year - 2016 | 388 | |
Origination Year - Prior | 6,396 | |
Revolving | 45 | |
Revolving to Term | 0 | |
Total | 8,242 | 8,085 |
Commercial real estate portfolio segment | CRE investment | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 104 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 913 | |
Origination Year - 2016 | 654 | |
Origination Year - Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 1,671 | 2,578 |
Commercial real estate portfolio segment | CRE investment | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 0 | |
Origination Year - 2016 | 144 | |
Origination Year - Prior | 2,744 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 2,888 | 1,761 |
Commercial real estate portfolio segment | Construction & land development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 25,720 | |
Origination Year - 2019 | 41,766 | |
Origination Year - 2018 | 22,029 | |
Origination Year - 2017 | 3,487 | |
Origination Year - 2016 | 2,261 | |
Origination Year - Prior | 10,215 | |
Revolving | 1,799 | |
Revolving to Term | 0 | |
Total | 107,277 | 92,970 |
Commercial real estate portfolio segment | Construction & land development | Grades 1- 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 25,720 | |
Origination Year - 2019 | 40,447 | |
Origination Year - 2018 | 19,330 | |
Origination Year - 2017 | 3,442 | |
Origination Year - 2016 | 2,261 | |
Origination Year - Prior | 9,282 | |
Revolving | 1,799 | |
Revolving to Term | 0 | |
Total | 102,281 | 90,523 |
Commercial real estate portfolio segment | Construction & land development | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 219 | |
Origination Year - 2018 | 2,699 | |
Origination Year - 2017 | 45 | |
Origination Year - 2016 | 0 | |
Origination Year - Prior | 26 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 2,989 | 2,213 |
Commercial real estate portfolio segment | Construction & land development | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 1,100 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 0 | |
Origination Year - 2016 | 0 | |
Origination Year - Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 1,100 | 15 |
Commercial real estate portfolio segment | Construction & land development | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 0 | |
Origination Year - 2016 | 0 | |
Origination Year - Prior | 907 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 907 | 219 |
Residential | Residential construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 14,455 | |
Origination Year - 2019 | 34,859 | |
Origination Year - 2018 | 1,459 | |
Origination Year - 2017 | 407 | |
Origination Year - 2016 | 19 | |
Origination Year - Prior | 133 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 51,332 | 54,403 |
Residential | Residential construction | Grades 1- 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 14,455 | |
Origination Year - 2019 | 34,545 | |
Origination Year - 2018 | 1,459 | |
Origination Year - 2017 | 351 | |
Origination Year - 2016 | 19 | |
Origination Year - Prior | 133 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 50,962 | 53,286 |
Residential | Residential construction | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 314 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 56 | |
Origination Year - 2016 | 0 | |
Origination Year - Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 370 | 1,117 |
Residential | Residential construction | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 0 | |
Origination Year - 2016 | 0 | |
Origination Year - Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 0 | 0 |
Residential | Residential construction | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 0 | |
Origination Year - 2016 | 0 | |
Origination Year - Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 0 | 0 |
Residential | Residential first mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 54,206 | |
Origination Year - 2019 | 73,144 | |
Origination Year - 2018 | 51,025 | |
Origination Year - 2017 | 53,403 | |
Origination Year - 2016 | 53,413 | |
Origination Year - Prior | 131,584 | |
Revolving | 919 | |
Revolving to Term | 0 | |
Total | 417,694 | 432,167 |
Residential | Residential first mortgage | Grades 1- 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 54,206 | |
Origination Year - 2019 | 71,663 | |
Origination Year - 2018 | 49,497 | |
Origination Year - 2017 | 53,126 | |
Origination Year - 2016 | 52,588 | |
Origination Year - Prior | 128,667 | |
Revolving | 919 | |
Revolving to Term | 0 | |
Total | 410,666 | 424,044 |
Residential | Residential first mortgage | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 825 | |
Origination Year - 2018 | 1,331 | |
Origination Year - 2017 | 258 | |
Origination Year - 2016 | 760 | |
Origination Year - Prior | 1,689 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 4,863 | 4,677 |
Residential | Residential first mortgage | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 0 | |
Origination Year - 2016 | 0 | |
Origination Year - Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 0 | 668 |
Residential | Residential first mortgage | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 656 | |
Origination Year - 2018 | 197 | |
Origination Year - 2017 | 19 | |
Origination Year - 2016 | 65 | |
Origination Year - Prior | 1,228 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 2,165 | 2,778 |
Residential | Residential junior mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 2,470 | |
Origination Year - 2019 | 5,261 | |
Origination Year - 2018 | 4,799 | |
Origination Year - 2017 | 1,670 | |
Origination Year - 2016 | 1,753 | |
Origination Year - Prior | 3,575 | |
Revolving | 93,126 | |
Revolving to Term | 1,669 | |
Total | 114,323 | 122,771 |
Residential | Residential junior mortgage | Grades 1- 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 2,470 | |
Origination Year - 2019 | 5,261 | |
Origination Year - 2018 | 4,799 | |
Origination Year - 2017 | 1,642 | |
Origination Year - 2016 | 1,753 | |
Origination Year - Prior | 3,203 | |
Revolving | 92,924 | |
Revolving to Term | 1,669 | |
Total | 113,721 | 122,249 |
Residential | Residential junior mortgage | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 0 | |
Origination Year - 2016 | 0 | |
Origination Year - Prior | 33 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 33 | 35 |
Residential | Residential junior mortgage | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 0 | |
Origination Year - 2016 | 0 | |
Origination Year - Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 0 | 0 |
Residential | Residential junior mortgage | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 28 | |
Origination Year - 2016 | 0 | |
Origination Year - Prior | 339 | |
Revolving | 202 | |
Revolving to Term | 0 | |
Total | $ 569 | $ 487 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles and Mortgage Servicing Rights - Narrative (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Impairment charge on goodwill | $ 0 | $ 762,000 |
Mortgage Servicing Rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Valuation allowance recorded during the period | $ 400,000 | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles and Mortgage Servicing Rights - Goodwill and other intangibles (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 151,198 | $ 151,198 | $ 107,366 |
Other intangibles | 12,896 | 14,769 | |
Goodwill and other intangibles, net | 164,094 | 165,967 | |
Core deposit intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangibles | 9,278 | 10,897 | |
Customer list intangibles: | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangibles | $ 3,618 | $ 3,872 |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles and Mortgage Servicing Rights - Goodwill (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Goodwill: | ||
Goodwill at beginning of year | $ 151,198 | $ 107,366 |
Acquisition | 0 | 44,594 |
Impairment | 0 | (762) |
Goodwill at end of period | $ 151,198 | $ 151,198 |
Goodwill and Other Intangible_6
Goodwill and Other Intangibles and Mortgage Servicing Rights - Other intangible assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Net book value | $ 12,896 | $ 12,896 | $ 14,769 | ||
Amortization during the period | 880 | $ 969 | 1,873 | $ 2,022 | |
Core deposit intangibles: | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 30,715 | 30,715 | 30,715 | ||
Accumulated amortization | (21,437) | (21,437) | (19,818) | ||
Net book value | 9,278 | 9,278 | 10,897 | ||
Additions during the period | 0 | 1,700 | |||
Amortization during the period | 1,619 | 3,365 | |||
Customer list intangibles: | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 5,523 | 5,523 | 5,523 | ||
Accumulated amortization | (1,905) | (1,905) | (1,651) | ||
Net book value | $ 3,618 | 3,618 | 3,872 | ||
Additions during the period | 0 | 0 | |||
Amortization during the period | $ 254 | $ 507 |
Goodwill and Other Intangible_7
Goodwill and Other Intangibles and Mortgage Servicing Rights - Mortgage servicing rights (Details) - Mortgage Servicing Rights - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Mortgage servicing rights ("MSR") asset: | ||
MSR asset at beginning of year | $ 5,919,000 | $ 3,749,000 |
Capitalized MSR | 2,250,000 | 2,876,000 |
MSR asset acquired | 0 | 160,000 |
Amortization during the period | (604,000) | (866,000) |
MSR asset at end of period | 7,565,000 | 5,919,000 |
Valuation Allowance: | ||
Valuation allowance at beginning of year | 0 | 0 |
Additions | (400,000) | 0 |
Valuation allowance at end of period | (400,000) | 0 |
MSR asset, net | 7,165,000 | 5,919,000 |
Fair value of MSR asset at end of period | 8,979,000 | 8,420,000 |
Residential mortgage loans serviced for others | $ 1,010,118,000 | $ 847,756,000 |
Net book value of MSR asset to loans serviced for others | 0.71% | 0.70% |
Goodwill and Other Intangible_8
Goodwill and Other Intangibles and Mortgage Servicing Rights - Estimated future amortization expense (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Net book value | $ 12,896 | $ 14,769 |
Core deposit intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
2020 (remaining six months) | 1,374 | |
2021 | 2,453 | |
2022 | 1,987 | |
2023 | 1,490 | |
2024 | 1,010 | |
2025 | 573 | |
Thereafter | 391 | |
Net book value | 9,278 | 10,897 |
Customer list intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
2020 (remaining six months) | 253 | |
2021 | 507 | |
2022 | 507 | |
2023 | 483 | |
2024 | 449 | |
2025 | 449 | |
Thereafter | 970 | |
Net book value | 3,618 | $ 3,872 |
MSR asset | ||
Finite-Lived Intangible Assets [Line Items] | ||
2020 (remaining six months) | 653 | |
2021 | 1,139 | |
2022 | 1,131 | |
2023 | 1,365 | |
2024 | 658 | |
2025 | 658 | |
Thereafter | 1,961 | |
Net book value | $ 7,565 |
Short and Long-Term Borrowing_2
Short and Long-Term Borrowings - Narrative (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2015 | Dec. 31, 2019 | |
Debt Instrument | |||
Short-term borrowings | $ 0 | $ 0 | |
Trust preferred securities qualify as Tier 1 capital | $ 29,700,000 | $ 29,400,000 | |
FHLB advances | |||
Debt Instrument | |||
FHLB weighted average interest rate | 0.93% | 1.57% | |
Subordinated notes | |||
Debt Instrument | |||
Term of loan | 10 years | ||
Aggregate amount of subordinated notes | $ 12,000,000 | ||
Interest rate | 5.00% | ||
PPP Liquidity Facility (“PPPLF”) | Minimum | |||
Debt Instrument | |||
Term of loan | 2 years | ||
PPP Liquidity Facility (“PPPLF”) | Maximum | |||
Debt Instrument | |||
Term of loan | 5 years | ||
PPP Liquidity Facility (“PPPLF”) | Weighted Average [Member] | |||
Debt Instrument | |||
Term of loan | 2 years |
Short and Long-Term Borrowing_3
Short and Long-Term Borrowings - Long-term Borrowings (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument | ||
Long-term borrowings | $ 417,826 | $ 67,629 |
PPP Liquidity Facility (“PPPLF”) | ||
Debt Instrument | ||
Long-term borrowings | 335,981 | 0 |
FHLB advances | ||
Debt Instrument | ||
Long-term borrowings | 39,030 | 25,061 |
Junior subordinated debentures | ||
Debt Instrument | ||
Long-term borrowings | 30,815 | 30,575 |
Subordinated notes | ||
Debt Instrument | ||
Long-term borrowings | $ 12,000 | $ 11,993 |
Short and Long-Term Borrowing_4
Short and Long-Term Borrowings - Junior Subordinated Debentures (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Junior Subordinated Debentures | ||
Carrying Value | $ 417,826,000 | $ 67,629,000 |
Junior subordinated debentures | ||
Junior Subordinated Debentures | ||
Par | 38,249,000 | |
Unamortized Discount | (7,434,000) | |
Carrying Value | 30,815,000 | 30,575,000 |
Junior subordinated debentures | 2005 Mid-Wisconsin Financial Services, Inc. | ||
Junior Subordinated Debentures | ||
Par | 10,310,000 | |
Unamortized Discount | (3,072,000) | |
Carrying Value | $ 7,238,000 | $ 7,138,000 |
Effective percentage | 1.74% | 3.32% |
Junior subordinated debentures | 2006 Baylake Corp. | ||
Junior Subordinated Debentures | ||
Par | $ 16,598,000 | |
Unamortized Discount | (3,765,000) | |
Carrying Value | $ 12,833,000 | $ 12,715,000 |
Effective percentage | 1.66% | 3.31% |
Junior subordinated debentures | 2004 First Menasha Bancshares, Inc. | ||
Junior Subordinated Debentures | ||
Par | $ 5,155,000 | |
Unamortized Discount | (597,000) | |
Carrying Value | $ 4,558,000 | $ 4,536,000 |
Effective percentage | 3.09% | 4.69% |
Junior subordinated debentures | 2004 Nicolet Bankshares Statutory Trust | ||
Junior Subordinated Debentures | ||
Par | $ 6,186,000 | |
Unamortized Discount | 0 | |
Carrying Value | $ 6,186,000 | $ 6,186,000 |
Stated interest rate | 8.00% | |
Junior subordinated debentures | London Interbank Offered Rate (LIBOR) | 2005 Mid-Wisconsin Financial Services, Inc. | ||
Junior Subordinated Debentures | ||
Floating interest rate | 1.43% | |
Junior subordinated debentures | London Interbank Offered Rate (LIBOR) | 2006 Baylake Corp. | ||
Junior Subordinated Debentures | ||
Floating interest rate | 1.35% | |
Junior subordinated debentures | London Interbank Offered Rate (LIBOR) | 2004 First Menasha Bancshares, Inc. | ||
Junior Subordinated Debentures | ||
Floating interest rate | 2.79% |
Fair Value Measurements - Measu
Fair Value Measurements - Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | $ 510,809 | $ 449,302 |
U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 63,850 | 16,460 |
State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 166,498 | 156,393 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 196,896 | 195,018 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 83,565 | 81,431 |
Recurring basis fair value measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 510,809 | 449,302 |
Recurring basis fair value measurements | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 63,850 | 16,460 |
Recurring basis fair value measurements | State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 166,498 | 156,393 |
Recurring basis fair value measurements | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 196,896 | 195,018 |
Recurring basis fair value measurements | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 83,565 | 81,431 |
Recurring basis fair value measurements | Other investments (equity securities) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 3,213 | 3,375 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 1 | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 1 | State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 1 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 1 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 1 | Other investments (equity securities) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 3,213 | 3,375 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 507,679 | 446,172 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 2 | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 63,850 | 16,460 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 2 | State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 166,498 | 156,393 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 2 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 196,896 | 195,018 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 2 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 80,435 | 78,301 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 2 | Other investments (equity securities) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 3,130 | 3,130 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 3 | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 3 | State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 3 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 3 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 3,130 | 3,130 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 3 | Other investments (equity securities) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | $ 0 | $ 0 |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Level 3 assets measured at fair value on a recurring basis (Details) - Available-for-sale Securities - Level 3 - Recurring basis fair value measurements - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Level 3 Fair Value Measurements: | ||
Balance at beginning of year | $ 3,130 | $ 8,490 |
Acquired balance | 0 | 300 |
Paydowns/Sales/Settlements | 0 | (5,660) |
Balance at end of period | $ 3,130 | $ 3,130 |
Fair Value Measurements - Mea_2
Fair Value Measurements - Measured at Fair Value on Nonrecurring Basis (Details) - Measured at Fair Value on a Nonrecurring Basis - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 7,776 | |
Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 16,150 | |
Other real estate owned (“OREO”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 1,000 | 1,000 |
MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 8,979 | 8,420 |
Fair Value Measurements Using Level 1 | Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | |
Fair Value Measurements Using Level 1 | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | |
Fair Value Measurements Using Level 1 | Other real estate owned (“OREO”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Fair Value Measurements Using Level 1 | MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Fair Value Measurements Using Level 2 | Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | |
Fair Value Measurements Using Level 2 | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | |
Fair Value Measurements Using Level 2 | Other real estate owned (“OREO”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Fair Value Measurements Using Level 2 | MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Fair Value Measurements Using Level 3 | Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 7,776 | |
Fair Value Measurements Using Level 3 | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 16,150 | |
Fair Value Measurements Using Level 3 | Other real estate owned (“OREO”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 1,000 | 1,000 |
Fair Value Measurements Using Level 3 | MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 8,979 | $ 8,420 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of carrying amounts and estimated fair values of financial instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financial assets: | ||
Securities AFS | $ 510,809 | $ 449,302 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 822,684 | 182,059 |
Certificates of deposit in other banks | 17,809 | 19,305 |
Securities AFS | 510,809 | 449,302 |
Other investments, including equity securities | 26,375 | 24,072 |
Loans held for sale | 21,832 | 2,706 |
Loans, net | 2,792,371 | 2,559,779 |
BOLI | 78,953 | 78,140 |
MSR asset | 7,165 | 5,919 |
Financial liabilities: | ||
Deposits | 3,537,805 | 2,954,453 |
Short-term borrowings | 0 | |
Long-term borrowings | 417,826 | 67,629 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 822,684 | 182,059 |
Certificates of deposit in other banks | 17,825 | 19,310 |
Securities AFS | 510,809 | 449,302 |
Other investments, including equity securities | 26,375 | 24,072 |
Loans held for sale | 22,377 | 2,753 |
Loans, net | 2,878,986 | 2,593,110 |
BOLI | 78,953 | 78,140 |
MSR asset | 8,979 | 8,420 |
Financial liabilities: | ||
Deposits | 3,545,764 | 2,956,229 |
Short-term borrowings | 0 | |
Long-term borrowings | 417,905 | 66,816 |
Estimated Fair Value | Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 822,684 | 182,059 |
Certificates of deposit in other banks | 0 | 0 |
Securities AFS | 0 | 0 |
Other investments, including equity securities | 3,213 | 3,375 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
BOLI | 78,953 | 78,140 |
MSR asset | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | |
Long-term borrowings | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposit in other banks | 17,825 | 19,310 |
Securities AFS | 507,679 | 446,172 |
Other investments, including equity securities | 19,299 | 16,759 |
Loans held for sale | 22,377 | 2,753 |
Loans, net | 0 | 0 |
BOLI | 0 | 0 |
MSR asset | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | |
Long-term borrowings | 375,707 | 25,075 |
Estimated Fair Value | Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposit in other banks | 0 | 0 |
Securities AFS | 3,130 | 3,130 |
Other investments, including equity securities | 3,863 | 3,938 |
Loans held for sale | 0 | 0 |
Loans, net | 2,878,986 | 2,593,110 |
BOLI | 0 | 0 |
MSR asset | 8,979 | 8,420 |
Financial liabilities: | ||
Deposits | 3,545,764 | 2,956,229 |
Short-term borrowings | 0 | |
Long-term borrowings | $ 42,198 | $ 41,741 |