Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 28, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
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 $0.01 per share | |
Trading Symbol | NCBS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 9,779,662 | |
Entity Central Index Key | 0001174850 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | |
Assets | |||
Cash and due from banks | $ 77,634 | $ 88,460 | |
Interest-earning deposits | 714,772 | 714,399 | |
Cash and cash equivalents | 792,406 | [1] | 802,859 |
Certificates of deposit in other banks | 23,387 | 29,521 | |
Securities available for sale (“AFS”), at fair value | 562,028 | 539,337 | |
Other investments | 33,440 | 27,619 | |
Loans held for sale | 11,235 | 21,450 | |
Loans | 2,820,331 | 2,789,101 | |
Allowance for credit losses - loans (“ACL-Loans”) | (32,561) | (32,173) | |
Loans, net | 2,787,770 | 2,756,928 | |
Premises and equipment, net | 61,618 | 59,944 | |
Bank owned life insurance (“BOLI”) | 84,347 | 83,262 | |
Goodwill and other intangibles, net | 173,711 | 175,353 | |
Accrued interest receivable and other assets | 57,405 | 55,516 | |
Total assets | 4,587,347 | 4,551,789 | |
Liabilities: | |||
Noninterest-bearing demand deposits | 1,324,994 | 1,212,787 | |
Interest-bearing deposits | 2,614,028 | 2,697,612 | |
Total deposits | 3,939,022 | 3,910,399 | |
Long-term borrowings | 45,108 | 53,869 | |
Accrued interest payable and other liabilities | 43,822 | 48,332 | |
Total liabilities | 4,027,952 | 4,012,600 | |
Stockholders’ Equity: | |||
Common stock | 98 | 100 | |
Additional paid-in capital | 261,096 | 273,390 | |
Retained earnings | 289,475 | 252,952 | |
Accumulated other comprehensive income (loss) | 8,726 | 12,747 | |
Total stockholders’ equity | 559,395 | 539,189 | |
Total liabilities and stockholders’ equity | $ 4,587,347 | $ 4,551,789 | |
Preferred shares authorized (no par value) (in shares) | 10,000,000 | 10,000,000 | |
Preferred shares issued and outstanding (in shares) | 0 | 0 | |
Common shares authorized (par value $0.01 per share) (in shares) | 30,000,000 | 30,000,000 | |
Common shares outstanding (in shares) | 9,843,141 | 10,011,342 | |
Common shares issued (in shares) | 9,865,955 | 10,030,267 | |
[1] | Cash and cash equivalents at both June 30, 2021 and 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. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
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, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Interest income: | ||||
Loans, including loan fees | $ 35,111 | $ 33,766 | $ 68,973 | $ 67,544 |
Investment securities: | ||||
Taxable | 2,060 | 2,042 | 3,874 | 4,114 |
Tax-exempt | 520 | 509 | 1,065 | 1,000 |
Other interest income | 616 | 575 | 1,271 | 1,237 |
Total interest income | 38,307 | 36,892 | 75,183 | 73,895 |
Interest expense: | ||||
Deposits | 2,433 | 4,455 | 5,355 | 9,412 |
Short-term borrowings | 0 | 38 | 0 | 65 |
Long-term borrowings | 303 | 902 | 616 | 1,658 |
Total interest expense | 2,736 | 5,395 | 5,971 | 11,135 |
Net interest income | 35,571 | 31,497 | 69,212 | 62,760 |
Provision for credit losses | 0 | 3,000 | 500 | 6,000 |
Net interest income after provision for credit losses | 35,571 | 28,497 | 68,712 | 56,760 |
Noninterest income: | ||||
Mortgage income, net | 5,599 | 9,963 | 12,829 | 12,290 |
BOLI income | 559 | 540 | 1,086 | 1,243 |
Asset gains (losses), net | 4,192 | (748) | 4,903 | (1,402) |
Other income | 1,529 | 1,487 | 2,601 | 2,008 |
Total noninterest income | 20,178 | 17,471 | 37,304 | 27,056 |
Noninterest expense: | ||||
Personnel | 17,084 | 14,482 | 32,200 | 27,805 |
Occupancy, equipment and office | 4,053 | 4,361 | 8,190 | 8,565 |
Business development and marketing | 1,210 | 2,514 | 2,199 | 3,873 |
Data processing | 2,811 | 2,399 | 5,469 | 4,962 |
Intangibles amortization | 790 | 880 | 1,642 | 1,873 |
FDIC assessments | 480 | 0 | 1,075 | 0 |
Other expense | 4,319 | 3,177 | 6,053 | 4,589 |
Total noninterest expense | 30,747 | 27,813 | 56,828 | 51,667 |
Income before income tax expense | 25,002 | 18,155 | 49,188 | 32,149 |
Income tax expense | 6,718 | 4,576 | 12,665 | 7,897 |
Net income | 18,284 | 13,579 | 36,523 | 24,252 |
Less: Net income attributable to noncontrolling interest | 0 | 101 | 0 | 219 |
Net income attributable to Nicolet Bankshares, Inc. | $ 18,284 | $ 13,478 | $ 36,523 | $ 24,033 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 1.85 | $ 1.29 | $ 3.67 | $ 2.30 |
Diluted (in dollars per share) | $ 1.77 | $ 1.28 | $ 3.52 | $ 2.25 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 9,901,614 | 10,417,226 | 9,949,359 | 10,466,590 |
Diluted (in shares) | 10,325,699 | 10,519,739 | 10,364,629 | 10,659,318 |
Trust services fee income | ||||
Noninterest income: | ||||
Fees and commissions | $ 1,906 | $ 1,510 | $ 3,681 | $ 3,089 |
Brokerage fee income | ||||
Noninterest income: | ||||
Fees and commissions | 2,991 | 2,269 | 5,784 | 4,591 |
Service charges on deposit accounts | ||||
Noninterest income: | ||||
Fees and commissions | 1,136 | 813 | 2,227 | 2,038 |
Card interchange income | ||||
Noninterest income: | ||||
Fees and commissions | $ 2,266 | $ 1,637 | $ 4,193 | $ 3,199 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 18,284 | $ 13,579 | $ 36,523 | $ 24,252 |
Unrealized gains (losses) on securities AFS: | ||||
Net unrealized holding gains (losses) | 1,862 | 7,985 | (5,507) | 12,314 |
Net realized (gains) losses included in income | 0 | (164) | 0 | (164) |
Income tax (expense) benefit | (503) | (2,112) | 1,486 | (3,280) |
Total other comprehensive income (loss) | 1,359 | 5,709 | (4,021) | 8,870 |
Comprehensive income | $ 19,643 | $ 19,288 | $ 32,502 | $ 33,122 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Adoption of new accounting pronouncement | Common Stock | Additional Paid-In Capital | Retained Earnings | Retained EarningsAdoption of new accounting pronouncement | Accumulated Other Comprehensive Income (Loss) | Non- controlling Interest |
Beginning Balance at Dec. 31, 2019 | $ 516,990 | $ (6,175) | $ 106 | $ 312,733 | $ 199,005 | $ (6,175) | $ 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 | ||
Beginning Balance at Dec. 31, 2020 | 539,189 | 100 | 273,390 | 252,952 | 12,747 | 0 | ||
Comprehensive income: | ||||||||
Net income | 36,523 | 36,523 | ||||||
Other comprehensive income (loss) | (4,021) | (4,021) | ||||||
Stock-based compensation expense | 3,396 | 3,396 | ||||||
Exercise of stock options, net | 1,225 | 1,225 | ||||||
Issuance of common stock | 232 | 232 | ||||||
Purchase and retirement of common stock | (17,149) | (2) | (17,147) | |||||
Ending Balance at Jun. 30, 2021 | 559,395 | 98 | 261,096 | 289,475 | 8,726 | 0 | ||
Beginning Balance at Mar. 31, 2021 | 550,046 | 100 | 271,388 | 271,191 | 7,367 | 0 | ||
Comprehensive income: | ||||||||
Net income | 18,284 | 18,284 | ||||||
Other comprehensive income (loss) | 1,359 | 1,359 | ||||||
Stock-based compensation expense | 2,055 | 2,055 | ||||||
Exercise of stock options, net | 64 | 64 | ||||||
Issuance of common stock | 111 | 111 | ||||||
Purchase and retirement of common stock | (12,524) | (2) | (12,522) | |||||
Ending Balance at Jun. 30, 2021 | $ 559,395 | $ 98 | $ 261,096 | $ 289,475 | $ 8,726 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Cash Flows From Operating Activities: | |||
Net income | $ 36,523 | $ 24,252 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization, and accretion | 5,204 | 4,954 | |
Provision for credit losses | 500 | 6,000 | |
Increase in cash surrender value of life insurance | (1,086) | (1,058) | |
Stock-based compensation expense | 3,396 | 2,956 | |
Asset (gains) losses, net | (4,903) | 1,402 | |
Gain on sale of loans held for sale, net | (12,133) | (12,217) | |
Net change due to: | |||
Proceeds from sale of loans held for sale | 367,215 | 395,187 | |
Origination of loans held for sale | (347,161) | (404,346) | |
Accrued interest receivable and other assets | (2,001) | (9,328) | |
Accrued interest payable and other liabilities | (2,539) | 12,388 | |
Net cash provided by (used in) operating activities | 43,015 | 20,190 | |
Cash Flows From Investing Activities: | |||
Net (increase) decrease in loans | (30,451) | (245,750) | |
Net (increase) decrease in certificates of deposit in other banks | 6,134 | 1,496 | |
Purchases of securities AFS | (88,204) | (94,380) | |
Proceeds from sales of securities AFS | 0 | 9,232 | |
Proceeds from calls and maturities of securities AFS | 58,349 | 40,017 | |
Purchases of other investments | (1,710) | (3,738) | |
Proceeds from sales of other investments | 822 | 0 | |
Proceeds from redemption of BOLI | 0 | 245 | |
Net (increase) decrease in premises and equipment | (3,694) | (6,240) | |
Net (increase) decrease in other real estate and other assets | 1,165 | 0 | |
Net cash provided by (used in) investing activities | (57,589) | (299,118) | |
Cash Flows From Financing Activities: | |||
Net increase (decrease) in deposits | 28,813 | 583,612 | |
Proceeds from long-term borrowings | 5,000 | 367,841 | |
Repayments of long-term borrowings | (14,000) | (17,860) | |
Purchase and retirement of common stock | (17,149) | (15,201) | |
Proceeds from issuance of common stock | 232 | 334 | |
Proceeds from exercise of stock options | 1,225 | 954 | |
Distribution to noncontrolling interest | 0 | (127) | |
Net cash provided by (used in) financing activities | 4,121 | 919,553 | |
Net increase (decrease) in cash and cash equivalents | (10,453) | 640,625 | |
Cash and cash equivalents: | |||
Beginning | 802,859 | 182,059 | |
Ending | [1] | 792,406 | 822,684 |
Supplemental Disclosures of Cash Flow Information: | |||
Cash paid for interest | 6,436 | 12,874 | |
Cash paid for taxes | 19,416 | 0 | |
Transfer of loans and bank premises to other real estate owned | 302 | 0 | |
Capitalized mortgage servicing rights | $ 2,294 | $ 2,250 | |
[1] | Cash and cash equivalents at both June 30, 2021 and June 30, 2020, include restricted cash of $1.9 million pledged as collateral on interest rate swaps and no reserve balance was required with the Federal Reserve Bank. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Cash Flows [Abstract] | ||
Restricted cash pledged as collateral on interest rate swaps | $ 1,900,000 | $ 1,900,000 |
Restricted cash and cash equivalents | $ 0 | $ 0 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
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, as of and 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, 2020. 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, 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, 2020. Reclassifications Certain amounts in the 2020 consolidated financial statements have been reclassified to conform to the 2021 presentation. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Completed Acquisition: Advantage Community Bancshares, Inc. (“Advantage”): On August 21, 2020, Nicolet completed its merger with Advantage, pursuant to the terms of the definitive merger agreement dated March 2, 2020, whereby Advantage merged with and into Nicolet, and Advantage Community Bank, the wholly owned bank subsidiary of Advantage, was merged with and into Nicolet National Bank. Advantage’s four branches in Dorchester, Edgar, Mosinee, and Wausau opened as Nicolet National Bank branches on August 24, 2020, expanding our presence in Central Wisconsin and the Wausau area. Due to the small size of the transaction, terms of the all-cash deal were not disclosed. Upon consummation, Advantage added total assets of approximately $172 million (representing approximately 4% of Nicolet’s then pre-merger asset size), loans of $88 million, deposits of $141 million, core deposit intangible of $1 million, and goodwill of $12 million. Pending Acquisitions: Mackinac Financial Corporation (“Mackinac”): On April 12, 2021, Nicolet entered into a definitive merger agreement with Mackinac pursuant to which Mackinac will merge with and into Nicolet, expanding Nicolet prominently into Northern Michigan and the Upper Peninsula of Michigan. Mackinac shareholders will receive fixed consideration of 0.22 shares of Nicolet common stock and $4.64 in cash for each share of Mackinac common stock owned (approximating a 20% cash and |
Earnings per Common Share
Earnings per Common Share | 6 Months Ended |
Jun. 30, 2021 | |
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) 2021 2020 2021 2020 Net income attributable to Nicolet Bankshares, Inc. $ 18,284 $ 13,478 $ 36,523 $ 24,033 Weighted average common shares outstanding 9,902 10,417 9,949 10,467 Effect of dilutive common stock awards 424 103 416 192 Diluted weighted average common shares outstanding 10,326 10,520 10,365 10,659 Basic earnings per common share* $ 1.85 $ 1.29 $ 3.67 $ 2.30 Diluted earnings per common share* $ 1.77 $ 1.28 $ 3.52 $ 2.25 *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, 2021 | |
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, 2021, approximately 0.9 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 for the six months ended June 30, 2021 and 2020 were as follows. Six Months Ended June 30, 2021 2020 Dividend yield — % — % Expected volatility 30 % 25 % Risk-free interest rate 1.16 % 1.67 % Expected average life 7 years 7 years Weighted average per share fair value of options $ 26.55 $ 21.83 A summary of the Company’s stock option activity is summarized below. Stock Options Option Shares Weighted Weighted Average Aggregate Outstanding - December 31, 2020 1,437,460 $ 50.47 Granted 380,000 78.77 Exercise of stock options * (36,482) 33.58 Forfeited (1,000) 48.85 Outstanding - June 30, 2021 1,779,978 $ 56.86 7.0 $ 27,295 Exercisable - June 30, 2021 950,778 $ 47.20 5.7 $ 22,028 * 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, 2021, 5,607 such shares were withheld by 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, 2021 and 2020 was approximately $1.5 million and $1.9 million, respectively. A summary of the Company’s restricted stock activity is summarized below. Restricted Stock Weighted Average Grant Restricted Shares Outstanding - December 31, 2020 $ 53.57 18,925 Granted 77.92 18,562 Vested * 59.90 (14,227) Forfeited 41.44 (446) Outstanding - June 30, 2021 $ 69.67 22,814 * 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, 1,506 shares were surrendered during the six months ended June 30, 2021. The Company recognized approximately $2.7 million and $2.6 million of stock-based compensation expense (included in personnel on the consolidated statements of income) for the six months ended June 30, 2021 and 2020, respectively, associated with its common stock awards granted to officers and employees. In addition, during first half 2021, the Company recognized approximately $0.7 million of director expense (included in other expense on the consolidated statements of income) for a total restricted stock grant of 8,562 shares with immediate vesting to directors, while during first half 2020, the Company recognized approximately $0.4 million of director expense for a total restricted stock grant of 7,950 shares with immediate vesting to directors, representing the annual stock retainer fee paid to external board members. As of June 30, 2021, there was approximately $17.8 million of unrecognized compensation cost related to equity award grants. The cost is expected to be recognized over the remaining vesting period of approximately four years. The Company recognized a tax benefit of approximately $0.3 million for both the six months ended June 30, 2021 and 2020, 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, 2021 | |
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, 2021 (in thousands) Amortized Cost Gross Gross Fair Value Fair Value as % of Total U.S. government agency securities $ 67,914 $ 136 $ 43 $ 68,007 12 % State, county and municipals 228,633 3,651 1,080 231,204 41 % Mortgage-backed securities 175,768 5,271 502 180,537 32 % Corporate debt securities 77,759 4,521 — 82,280 15 % Total $ 550,074 $ 13,579 $ 1,625 $ 562,028 100 % December 31, 2020 (in thousands) Amortized Cost Gross Gross Fair Value Fair Value as % of Total U.S. government agency securities $ 63,162 $ 289 $ — $ 63,451 12 % State, county and municipals 226,493 5,386 11 231,868 43 % Mortgage-backed securities 156,148 6,425 78 162,495 30 % Corporate debt securities 76,073 5,450 — 81,523 15 % Total $ 521,876 $ 17,550 $ 89 $ 539,337 100 % 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 $131 million and $146 million as of June 30, 2021 and December 31, 2020, respectively, were pledged as collateral on public deposits and for other purposes as required or permitted by law. Accrued interest on securities AFS totaled $2.6 million and $2.3 million at June 30, 2021 and December 31, 2020, respectively, and is included in accrued interest receivable and other assets on the consolidated balance sheets. The following table presents gross unrealized losses and the related estimated fair value of securities AFS for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position. June 30, 2021 Less than 12 months 12 months or more Total ($ in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Number of U.S. government agency securities $ 16,427 $ 43 $ — $ — $ 16,427 $ 43 1 State, county and municipals 61,025 1,080 — — 61,025 1,080 80 Mortgage-backed securities 42,092 491 854 11 42,946 502 43 Total $ 119,544 $ 1,614 $ 854 $ 11 $ 120,398 $ 1,625 124 December 31, 2020 Less than 12 months 12 months or more Total ($ in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Number of State, county and municipals $ 5,181 $ 11 $ — $ — $ 5,181 $ 11 9 Mortgage-backed securities 10,612 71 492 7 11,104 78 22 Total $ 15,793 $ 82 $ 492 $ 7 $ 16,285 $ 89 31 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, 2021 and December 31, 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. 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, 2021 (in thousands) Amortized Cost Fair Value Due in less than one year $ 75,485 $ 75,771 Due in one year through five years 157,313 162,657 Due after five years through ten years 134,810 135,132 Due after ten years 6,698 7,931 374,306 381,491 Mortgage-backed securities 175,768 180,537 Securities AFS $ 550,074 $ 562,028 There were no sales of securities AFS for the six months ended June 30, 2021. Gross gains of $164,000 and proceeds of $9.2 million were recognized for the six months ended June 30, 2020. |
Loans, Allowance for Credit Los
Loans, Allowance for Credit Losses - Loans, and Credit Quality | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 December 31, 2020 (in thousands) Amount % of Amount % of Commercial & industrial $ 736,169 26 % $ 750,718 27 % Paycheck Protection Program (“PPP”) loans 150,287 5 186,016 7 Owner-occupied commercial real estate (“CRE”) 520,299 18 521,300 19 Agricultural 110,664 4 109,629 4 CRE investment 505,588 18 460,721 16 Construction & land development 140,588 5 131,283 5 Residential construction 46,646 2 41,707 1 Residential first mortgage 471,354 17 444,155 16 Residential junior mortgage 104,218 4 111,877 4 Retail & other 34,518 1 31,695 1 Loans 2,820,331 100 % 2,789,101 100 % Less allowance for credit losses - Loans (“ACL-Loans”) 32,561 32,173 Loans, net $ 2,787,770 $ 2,756,928 Allowance for credit losses - Loans to loans 1.15 % 1.15 % Accrued interest on loans totaled $6 million at June 30, 2021 and $7 million at December 31, 2020, and is included in accrued interest receivable and other assets on the consolidated balance sheets. 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 - loans is summarized as follows. Three Months Ended Six Months Ended Year Ended (in thousands) June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 December 31, 2020 Beginning balance $ 32,626 $ 26,202 $ 32,173 $ 13,972 $ 13,972 Adoption of CECL — — — 8,488 8,488 Initial PCD ACL — — — 797 797 Total impact - adoption CECL — — — 9,285 9,285 Provision for credit losses — 3,000 500 6,000 10,300 Charge-offs (235) (123) (329) (216) (1,689) Recoveries 170 51 217 89 305 Net (charge-offs) recoveries (65) (72) (112) (127) (1,384) Ending balance $ 32,561 $ 29,130 $ 32,561 $ 29,130 $ 32,173 The following tables present the balance and activity in the ACL-Loans by portfolio segment. Six Months Ended June 30, 2021 (in thousands) Commercial Owner- Agricultural CRE Construction & land Residential Residential Residential Retail Total ACL-Loans * Beginning balance $ 11,644 $ 5,872 $ 1,395 $ 5,441 $ 984 $ 421 $ 4,773 $ 1,086 $ 557 $ 32,173 Provision (1,537) (367) 68 940 267 183 535 164 247 500 Charge-offs (209) — (48) (4) — — — — (68) (329) Recoveries 173 — — 2 — — 12 3 27 217 Net (charge-offs) recoveries (36) — (48) (2) — — 12 3 (41) (112) Ending balance $ 10,071 $ 5,505 $ 1,415 $ 6,379 $ 1,251 $ 604 $ 5,320 $ 1,253 $ 763 $ 32,561 As % of ACL-Loans 31 % 17 % 4 % 20 % 4 % 2 % 16 % 4 % 2 % 100 % *The PPP loans are fully guaranteed by the SBA; thus, no ACL-Loans has been allocated to these loans. Year Ended December 31, 2020 (in thousands) Commercial Owner- Agricultural CRE Construction Residential Residential Residential Retail & 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 3,106 2,062 455 2,061 519 (71) 1,809 151 208 10,300 Charge-offs (812) (530) — (190) — — (2) — (155) (1,689) Recoveries 120 81 — — — — 11 67 26 305 Net (charge-offs) recoveries (692) (449) — (190) — — 9 67 (129) (1,384) Ending balance $ 11,644 $ 5,872 $ 1,395 $ 5,441 $ 984 $ 421 $ 4,773 $ 1,086 $ 557 $ 32,173 As % of ACL-Loans 36 % 18 % 4 % 17 % 3 % 1 % 15 % 4 % 2 % 100 % 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, collateral dependent loans, and 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. 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 estimated 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 tables present collateral dependent loans by portfolio segment and collateral type, including those loans with and without a related allowance allocation. June 30, 2021 Collateral Type (in thousands) Real Estate Other Business Assets Total Without an Allowance With an Allowance Allowance Allocation Commercial & industrial $ — $ 475 $ 475 $ 450 $ 25 $ 1 PPP loans — — — — — — Owner-occupied CRE 3,164 — 3,164 3,164 — — Agricultural 967 648 1,615 — 1,615 56 CRE investment 1,567 — 1,567 1,567 — — Construction & land development 389 — 389 389 — — Residential construction — — — — — — Residential first mortgage 1,639 — 1,639 1,639 — — Residential junior mortgage 166 — 166 166 — — Retail & other — — — — — — Total loans $ 7,892 $ 1,123 $ 9,015 $ 7,375 $ 1,640 $ 57 December 31, 2020 Collateral Type (in thousands) Real Estate Other Business Assets Total Without an Allowance With an Allowance Allowance Allocation Commercial & industrial $ — $ 2,195 $ 2,195 $ 501 $ 1,694 $ 1,241 PPP loans — — — — — — Owner-occupied CRE 3,519 — 3,519 3,519 — — Agricultural 584 797 1,381 1,378 3 3 CRE investment 1,474 — 1,474 1,474 — — Construction & land development 308 — 308 308 — — Residential construction — — — — — — Residential first mortgage — — — — — — Residential junior mortgage — — — — — — Retail & other — — — — — — Total loans $ 5,885 $ 2,992 $ 8,877 $ 7,180 $ 1,697 $ 1,244 Past Due and Nonaccrual Loans : The following tables present past due loans by portfolio segment. June 30, 2021 (in thousands) 30-89 Days Past 90 Days & Over or nonaccrual Current Total Commercial & industrial $ 231 $ 1,110 $ 734,828 $ 736,169 PPP loans — — 150,287 150,287 Owner-occupied CRE — 1,625 518,674 520,299 Agricultural — 1,820 108,844 110,664 CRE investment — 743 504,845 505,588 Construction & land development 32 326 140,230 140,588 Residential construction — — 46,646 46,646 Residential first mortgage 370 1,135 469,849 471,354 Residential junior mortgage 31 113 104,074 104,218 Retail & other 66 60 34,392 34,518 Total loans $ 730 $ 6,932 $ 2,812,669 $ 2,820,331 Percent of total loans — % 0.3 % 99.7 % 100.0 % December 31, 2020 (in thousands) 30-89 Days Past 90 Days & Over or nonaccrual Current Total Commercial & industrial $ — $ 2,646 $ 748,072 $ 750,718 PPP loans — — 186,016 186,016 Owner-occupied CRE — 1,869 519,431 521,300 Agricultural 7 1,830 107,792 109,629 CRE investment — 1,488 459,233 460,721 Construction & land development — 327 130,956 131,283 Residential construction — — 41,707 41,707 Residential first mortgage 613 823 442,719 444,155 Residential junior mortgage 43 384 111,450 111,877 Retail & other 102 88 31,505 31,695 Total loans $ 765 $ 9,455 $ 2,778,881 $ 2,789,101 Percent of total loans — % 0.4 % 99.6 % 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, 2021 December 31, 2020 (in thousands) Nonaccrual Loans % of Total Nonaccrual Loans % of Total Commercial & industrial $ 1,110 16 % $ 2,646 28 % PPP loans — — — — Owner-occupied CRE 1,625 23 1,869 20 Agricultural 1,820 26 1,830 19 CRE investment 743 11 1,488 16 Construction & land development 326 5 327 3 Residential construction — — — — Residential first mortgage 1,135 16 823 9 Residential junior mortgage 113 2 384 4 Retail & other 60 1 88 1 Nonaccrual loans $ 6,932 100 % $ 9,455 100 % Percent of total loans 0.3 % 0.4 % Credit Quality Information : The following tables present total loans by risk categories and year of origination. June 30, 2021 Amortized Cost Basis by Origination Year (in thousands) 2021 2020 2019 2018 2017 Prior Revolving Revolving to Term TOTAL Commercial & industrial (a) Grades 1-4 $ 202,033 $ 152,425 $ 102,212 $ 83,827 $ 61,276 $ 52,122 $ 205,187 $ — $ 859,082 Grade 5 332 2,104 2,938 4,103 4,983 1,244 8,664 — 24,368 Grade 6 646 62 14 34 — 54 453 — 1,263 Grade 7 — 20 559 247 656 261 — — 1,743 Total $ 203,011 $ 154,611 $ 105,723 $ 88,211 $ 66,915 $ 53,681 $ 214,304 $ — $ 886,456 Owner-occupied CRE Grades 1-4 $ 52,332 $ 80,254 $ 70,356 $ 71,906 $ 54,680 $ 163,041 $ 1,020 $ — $ 493,589 Grade 5 — 1,391 1,303 958 2,450 10,812 — — 16,914 Grade 6 — — — — 1,682 241 — — 1,923 Grade 7 — 2,949 166 — 942 3,816 — — 7,873 Total $ 52,332 $ 84,594 $ 71,825 $ 72,864 $ 59,754 $ 177,910 $ 1,020 $ — $ 520,299 Agricultural Grades 1-4 $ 6,430 $ 13,218 $ 5,132 $ 7,300 $ 8,933 $ 33,511 $ 22,697 $ — $ 97,221 Grade 5 382 295 — 669 221 7,457 456 — 9,480 Grade 6 — — — — — — — — — Grade 7 — — — 25 324 3,516 98 — 3,963 Total $ 6,812 $ 13,513 $ 5,132 $ 7,994 $ 9,478 $ 44,484 $ 23,251 $ — $ 110,664 CRE investment Grades 1-4 $ 106,420 $ 80,996 $ 63,133 $ 26,878 $ 47,690 $ 137,969 $ 5,331 $ — $ 468,417 Grade 5 2,276 2,592 1,318 3,089 189 24,740 — — 34,204 Grade 6 — — — — 779 59 — — 838 Grade 7 — — — — 919 1,210 — — 2,129 Total $ 108,696 $ 83,588 $ 64,451 $ 29,967 $ 49,577 $ 163,978 $ 5,331 $ — $ 505,588 Construction & land development Grades 1-4 $ 13,738 $ 79,069 $ 19,516 $ 12,081 $ 1,601 $ 8,456 $ 4,877 $ — $ 139,338 Grade 5 — — — — 504 36 303 — 843 Grade 6 — — — — — — — — — Grade 7 — — — — 18 308 81 — 407 Total $ 13,738 $ 79,069 $ 19,516 $ 12,081 $ 2,123 $ 8,800 $ 5,261 $ — $ 140,588 Residential construction Grades 1-4 $ 21,871 $ 21,354 $ 2,298 $ 460 $ 396 $ 214 $ — $ — $ 46,593 Grade 5 — — — — 53 — — — 53 Grade 6 — — — — — — — — — Grade 7 — — — — — — — — — Total $ 21,871 $ 21,354 $ 2,298 $ 460 $ 449 $ 214 $ — $ — $ 46,646 Residential first mortgage Grades 1-4 $ 101,859 $ 133,749 $ 52,563 $ 31,994 $ 31,315 $ 112,478 $ 242 $ 5 $ 464,205 Grade 5 — — 502 586 457 2,544 — — 4,089 Grade 6 — — — — — — — — — Grade 7 — — 1,808 — 113 1,139 — — 3,060 Total $ 101,859 $ 133,749 $ 54,873 $ 32,580 $ 31,885 $ 116,161 $ 242 $ 5 $ 471,354 Residential junior mortgage Grades 1-4 $ 1,599 $ 3,293 $ 2,387 $ 2,298 $ 679 $ 3,055 $ 89,335 $ 1,262 $ 103,908 Grade 5 — — — — — 31 — — 31 Grade 6 — — — — — — — — — Grade 7 — — 166 — 25 47 41 — 279 Total $ 1,599 $ 3,293 $ 2,553 $ 2,298 $ 704 $ 3,133 $ 89,376 $ 1,262 $ 104,218 Retail & other Grades 1-4 $ 6,923 $ 4,687 $ 4,241 $ 1,332 $ 1,434 $ 1,752 $ 14,089 $ — $ 34,458 Grade 5 — — — — — — — — — Grade 6 — — — — — — — — — Grade 7 — 11 — — — 49 — — 60 Total $ 6,923 $ 4,698 $ 4,241 $ 1,332 $ 1,434 $ 1,801 $ 14,089 $ — $ 34,518 Total loans $ 516,841 $ 578,469 $ 330,612 $ 247,787 $ 222,319 $ 570,162 $ 352,874 $ 1,267 $ 2,820,331 (a) For purposes of this table at June 30, 2021, the $150 million net carrying value of PPP loans include $139 million originated in 2021 and $11 million originated in 2020, have a Pass risk grade (Grades 1-4) and have been included with the Commercial & industrial loan category. December 31, 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 $ 348,274 $ 121,989 $ 98,920 $ 72,027 $ 21,613 $ 39,454 $ 183,858 $ — $ 886,135 Grade 5 1,416 2,239 4,486 527 1,638 4,151 18,994 — 33,451 Grade 6 69 19 735 5,315 29 32 1,923 — 8,122 Grade 7 334 1,126 1,389 663 122 3,103 2,289 — 9,026 Total $ 350,093 $ 125,373 $ 105,530 $ 78,532 $ 23,402 $ 46,740 $ 207,064 $ — $ 936,734 Owner-occupied CRE Grades 1-4 $ 90,702 $ 74,029 $ 78,013 $ 52,911 $ 45,042 $ 150,624 $ 870 $ — $ 492,191 Grade 5 42 623 1,349 7,541 1,102 5,842 — — 16,499 Grade 6 — — — 1,710 — 706 — — 2,416 Grade 7 2,987 675 176 835 — 5,521 — — 10,194 Total $ 93,731 $ 75,327 $ 79,538 $ 62,997 $ 46,144 $ 162,693 $ 870 $ — $ 521,300 Agricultural Grades 1-4 $ 13,719 $ 5,652 $ 7,580 $ 9,745 $ 2,613 $ 32,702 $ 21,513 $ — $ 93,524 Grade 5 1,034 — 701 169 644 6,131 356 — 9,035 Grade 6 — — — 329 390 — — — 719 Grade 7 — — 26 110 1,111 5,042 62 — 6,351 Total $ 14,753 $ 5,652 $ 8,307 $ 10,353 $ 4,758 $ 43,875 $ 21,931 $ — $ 109,629 CRE investment Grades 1-4 $ 82,518 $ 78,841 $ 40,881 $ 69,643 $ 31,541 $ 137,048 $ 5,255 $ — $ 445,727 Grade 5 — — 47 1,284 1,828 9,073 — — 12,232 Grade 6 — — — 796 — — — — 796 Grade 7 — — — — — 1,966 — — 1,966 Total $ 82,518 $ 78,841 $ 40,928 $ 71,723 $ 33,369 $ 148,087 $ 5,255 $ — $ 460,721 Construction & land development Grades 1-4 $ 67,578 $ 30,733 $ 15,209 $ 2,204 $ 2,083 $ 7,266 $ 3,675 $ — $ 128,748 Grade 5 — 373 660 545 — 23 455 — 2,056 Grade 6 — — — — — — — — — Grade 7 — — — — — 479 — — 479 Total $ 67,578 $ 31,106 $ 15,869 $ 2,749 $ 2,083 $ 7,768 $ 4,130 $ — $ 131,283 Residential construction Grades 1-4 $ 31,687 $ 9,185 $ 395 $ 121 $ — $ 264 $ — $ — $ 41,652 Grade 5 — — — 55 — — — — 55 Grade 6 — — — — — — — — — Grade 7 — — — — — — — — — Total $ 31,687 $ 9,185 $ 395 $ 176 $ — $ 264 $ — $ — $ 41,707 Residential first mortgage Grades 1-4 $ 146,744 $ 64,013 $ 40,388 $ 41,245 $ 41,274 $ 103,094 $ 287 $ 5 $ 437,050 Grade 5 — 925 2,245 256 364 1,714 — — 5,504 Grade 6 — — — — — — — — — Grade 7 — 437 197 16 9 942 — — 1,601 Total $ 146,744 $ 65,375 $ 42,830 $ 41,517 $ 41,647 $ 105,750 $ 287 $ 5 $ 444,155 Residential junior mortgage Grades 1-4 $ 4,936 $ 4,338 $ 3,663 $ 1,060 $ 869 $ 3,131 $ 91,816 $ 1,648 $ 111,461 Grade 5 — — — — — 32 — — 32 Grade 6 — — — — — — — — — Grade 7 — — — 27 — 232 125 — 384 Total $ 4,936 $ 4,338 $ 3,663 $ 1,087 $ 869 $ 3,395 $ 91,941 $ 1,648 $ 111,877 Retail & other Grades 1-4 $ 8,083 $ 5,213 $ 1,942 $ 1,676 $ 752 $ 1,339 $ 12,602 $ — $ 31,607 Grade 5 — — — — — — — — — Grade 6 — — — — — — — — — Grade 7 16 — 22 — — 50 — — 88 Total $ 8,099 $ 5,213 $ 1,964 $ 1,676 $ 752 $ 1,389 $ 12,602 $ — $ 31,695 Total loans $ 800,139 $ 400,410 $ 299,024 $ 270,810 $ 153,024 $ 519,961 $ 344,080 $ 1,653 $ 2,789,101 (a) For purposes of this table, the $186 million net carrying value of PPP loans at December 31, 2020 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, 2021 (in thousands) Grades 1- 4 Grade 5 Grade 6 Grade 7 Total Commercial & industrial $ 708,795 $ 24,368 $ 1,263 $ 1,743 $ 736,169 PPP loans 150,287 — — — 150,287 Owner-occupied CRE 493,589 16,914 1,923 7,873 520,299 Agricultural 97,221 9,480 — 3,963 110,664 CRE investment 468,417 34,204 838 2,129 505,588 Construction & land development 139,338 843 — 407 140,588 Residential construction 46,593 53 — — 46,646 Residential first mortgage 464,205 4,089 — 3,060 471,354 Residential junior mortgage 103,908 31 — 279 104,218 Retail & other 34,458 — — 60 34,518 Total loans $ 2,706,811 $ 89,982 $ 4,024 $ 19,514 $ 2,820,331 Percent of total 96.0 % 3.2 % 0.1 % 0.7 % 100.0 % December 31, 2020 (in thousands) Grades 1- 4 Grade 5 Grade 6 Grade 7 Total Commercial & industrial $ 700,119 $ 33,451 $ 8,122 $ 9,026 $ 750,718 PPP loans 186,016 — — — 186,016 Owner-occupied CRE 492,191 16,499 2,416 10,194 521,300 Agricultural 93,524 9,035 719 6,351 109,629 CRE investment 445,727 12,232 796 1,966 460,721 Construction & land development 128,748 2,056 — 479 131,283 Residential construction 41,652 55 — — 41,707 Residential first mortgage 437,050 5,504 — 1,601 444,155 Residential junior mortgage 111,461 32 — 384 111,877 Retail & other 31,607 — — 88 31,695 Total loans $ 2,668,095 $ 78,864 $ 12,053 $ 30,089 $ 2,789,101 Percent of total 95.7 % 2.8 % 0.4 % 1.1 % 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, 2021, there were twelve loans classified as troubled debt restructurings with a current outstanding balance of $6.8 million (including $2.9 million on nonaccrual and $3.9 million performing) and pre-modification balance of $7.3 million. In comparison, at December 31, 2020, there were eleven loans classified as troubled debt |
Goodwill and Other Intangibles
Goodwill and Other Intangibles and Mortgage Servicing Rights | 6 Months Ended |
Jun. 30, 2021 | |
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. Management continues to consider the ongoing impacts of the COVID-19 pandemic and related economic uncertainty on the valuation of our franchise, 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. A summary of goodwill and other intangibles was as follows. Six Months Ended Year Ended (in thousands) June 30, 2021 December 31, 2020 Goodwill $ 163,151 $ 163,151 Core deposit intangibles 7,449 8,837 Customer list intangibles 3,111 3,365 Other intangibles 10,560 12,202 Goodwill and other intangibles, net $ 173,711 $ 175,353 Goodwill : A summary of goodwill was as follows. During 2020, goodwill increased due to the Advantage acquisition. See Note 2 for additional information on the Company’s acquisitions. Six Months Ended Year Ended (in thousands) June 30, 2021 December 31, 2020 Goodwill: Goodwill at beginning of year $ 163,151 $ 151,198 Acquisition — 11,953 Goodwill at end of period $ 163,151 $ 163,151 Other intangible assets : Other intangible assets, consisting of core deposit intangibles and customer list intangibles, are amortized over their estimated finite lives. During 2020, core deposit intangibles increased due to the Advantage acquisition. See Note 2 for additional information on the Company’s acquisitions. Six Months Ended Year Ended (in thousands) June 30, 2021 December 31, 2020 Core deposit intangibles: Gross carrying amount $ 31,715 $ 31,715 Accumulated amortization (24,266) (22,878) Net book value $ 7,449 $ 8,837 Additions during the period $ — $ 1,000 Amortization during the period $ 1,388 $ 3,060 Customer list intangibles: Gross carrying amount $ 5,523 $ 5,523 Accumulated amortization (2,412) (2,158) Net book value $ 3,111 $ 3,365 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, 2021 December 31, 2020 Mortgage servicing rights ("MSR") asset: MSR asset at beginning of year $ 10,230 $ 5,919 Capitalized MSR 2,294 5,256 MSR asset acquired — 529 Amortization during the period (1,029) (1,474) MSR asset at end of period $ 11,495 $ 10,230 Valuation allowance at beginning of year $ (1,000) $ — Additions (500) (1,000) Valuation allowance at end of period $ (1,500) $ (1,000) MSR asset, net $ 9,995 $ 9,230 Fair value of MSR asset at end of period $ 12,214 $ 9,276 Residential mortgage loans serviced for others $ 1,335,522 $ 1,250,206 Net book value of MSR asset to loans serviced for others 0.75 % 0.74 % 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 stratification based on the risk characteristics of the underlying loans (predominantly loan type and note interest rate). 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, 2021. 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, 2021 (remaining six months) $ 1,255 $ 253 $ 901 2022 2,150 507 1,942 2023 1,633 483 1,855 2024 1,130 449 1,796 2025 670 449 1,134 2026 317 249 1,044 Thereafter 294 721 2,823 Total $ 7,449 $ 3,111 $ 11,495 |
Short and Long-Term Borrowings
Short and Long-Term Borrowings | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 and December 31, 2020, the Company did not have any outstanding short-term borrowings. Long-Term Borrowings: Long-term borrowings include any borrowing with an original maturity greater than one year. The components of long-term borrowings were as follows. (in thousands) June 30, 2021 December 31, 2020 FHLB advances $ 20,000 $ 29,000 Junior subordinated debentures 25,108 24,869 Total long-term borrowings $ 45,108 $ 53,869 FHLB Advances : The FHLB advances bear fixed rates, require interest-only monthly payments, and have maturity dates through March 2027. The weighted average rate of the FHLB advances was 0.74% at June 30, 2021 and 0.73% at December 31, 2020. 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, 2021 and December 31, 2020, $24.1 million and $23.9 million, respectively, qualify as Tier 1 capital. Junior Subordinated Debentures June 30, 2021 December 31, 2020 (in thousands) Maturity Par Unamortized Carrying Carrying 2005 Mid-Wisconsin Financial Services, Inc. (1) 12/15/2035 $ 10,310 $ (2,873) $ 7,437 $ 7,338 2006 Baylake Corp. (2) 9/30/2036 16,598 (3,529) 13,069 12,951 2004 First Menasha Bancshares, Inc. (3) 3/17/2034 5,155 (553) 4,602 4,580 Total $ 32,063 $ (6,955) $ 25,108 $ 24,869 (1) 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 1.55% and 1.65% as of June 30, 2021 and December 31, 2020, respectively. (2) 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 1.50% and 1.59% as of June 30, 2021 and December 31, 2020, respectively. (3) 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 2.91% and 3.02% as of June 30, 2021 and December 31, 2020, respectively. Subordinated Notes : Subsequent to quarter end, on July 7, 2021, Nicolet completed the private placement of $100 million in fixed-to-floating rate subordinated notes (the “Notes”) due in 2031. The Notes are intended to qualify as Tier 2 capital for regulatory purposes, and are redeemable beginning July 15, 2026 and quarterly thereafter on any interest payment date. The Notes will bear interest at a fixed annual rate of 3.125% for the first five years and will reset quarterly thereafter to the then current three-month Secured Overnight Financing Rate (“SOFR”) plus 0.2375%. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 U.S. government agency securities $ 68,007 $ — $ 68,007 $ — State, county and municipals 231,204 — 231,204 — Mortgage-backed securities 180,537 — 180,537 — Corporate debt securities 82,280 — 79,150 3,130 Securities AFS $ 562,028 $ — $ 558,898 $ 3,130 Other investments (equity securities) $ 9,116 $ 9,116 $ — $ — December 31, 2020 U.S. government agency securities $ 63,451 $ — $ 63,451 $ — State, county and municipals 231,868 — 231,868 — Mortgage-backed securities 162,495 — 162,495 — Corporate debt securities 81,523 — 78,393 3,130 Securities AFS $ 539,337 $ — $ 536,207 $ 3,130 Other investments (equity securities) $ 3,567 $ 3,567 $ — $ — 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 corporate debt securities, which include trust preferred security investments. At June 30, 2021 and December 31, 2020, 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. For the six months ended June 30, 2021 and the year ended December 31, 2020, there have been no changes in the Level 3 securities AFS measured at fair value on a recurring basis. 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, 2021 Collateral dependent loans $ 8,958 $ — $ — $ 8,958 Other real estate owned (“OREO”) 2,895 — — 2,895 MSR asset 9,995 — — 9,995 December 31, 2020 Collateral dependent loans $ 7,633 $ — $ — $ 7,633 OREO 3,608 — — 3,608 MSR asset 9,230 — — 9,230 The following is a description of the valuation methodologies used by the Company for the items noted in the table above. For collateral dependent loans, expected credit losses are based on the estimated 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. 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, 2021 (in thousands) Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 792,406 $ 792,406 $ 792,406 $ — $ — Certificates of deposit in other banks 23,387 24,948 — 24,948 — Securities AFS 562,028 562,028 — 558,898 3,130 Other investments, including equity securities 33,440 33,440 9,116 20,115 4,209 Loans held for sale 11,235 11,537 — 11,537 — Loans, net 2,787,770 2,843,744 — — 2,843,744 MSR asset 9,995 12,214 — — 12,214 Financial liabilities: Deposits $ 3,939,022 $ 3,945,358 $ — $ — $ 3,945,358 Long-term borrowings 45,108 45,350 — 20,242 25,108 December 31, 2020 (in thousands) Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 802,859 $ 802,859 $ 802,859 $ — $ — Certificates of deposit in other banks 29,521 31,053 — 31,053 — Securities AFS 539,337 539,337 — 536,207 3,130 Other investments, including equity securities 27,619 27,619 3,567 20,155 3,897 Loans held for sale 21,450 22,329 — 22,329 — Loans, net 2,756,928 2,834,452 — — 2,834,452 MSR asset 9,230 9,276 — — 9,276 Financial liabilities: Deposits $ 3,910,399 $ 3,917,121 $ — $ — $ 3,917,121 Long-term borrowings 53,869 53,859 — 29,488 24,371 The valuation methodologies for the financial instruments disclosed in the above table are described in the Fair Value Measurements note in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
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, as of and 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, 2020. |
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, 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, 2020. |
Reclassifications | Reclassifications Certain amounts in the 2020 consolidated financial statements have been reclassified to conform to the 2021 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, collateral dependent loans, and 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. 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 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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) 2021 2020 2021 2020 Net income attributable to Nicolet Bankshares, Inc. $ 18,284 $ 13,478 $ 36,523 $ 24,033 Weighted average common shares outstanding 9,902 10,417 9,949 10,467 Effect of dilutive common stock awards 424 103 416 192 Diluted weighted average common shares outstanding 10,326 10,520 10,365 10,659 Basic earnings per common share* $ 1.85 $ 1.29 $ 3.67 $ 2.30 Diluted earnings per common share* $ 1.77 $ 1.28 $ 3.52 $ 2.25 *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, 2021 | |
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 for the six months ended June 30, 2021 and 2020 were as follows. Six Months Ended June 30, 2021 2020 Dividend yield — % — % Expected volatility 30 % 25 % Risk-free interest rate 1.16 % 1.67 % Expected average life 7 years 7 years Weighted average per share fair value of options $ 26.55 $ 21.83 |
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, 2020 1,437,460 $ 50.47 Granted 380,000 78.77 Exercise of stock options * (36,482) 33.58 Forfeited (1,000) 48.85 Outstanding - June 30, 2021 1,779,978 $ 56.86 7.0 $ 27,295 Exercisable - June 30, 2021 950,778 $ 47.20 5.7 $ 22,028 * 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, 2021, 5,607 such shares were withheld by 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, 2020 $ 53.57 18,925 Granted 77.92 18,562 Vested * 59.90 (14,227) Forfeited 41.44 (446) Outstanding - June 30, 2021 $ 69.67 22,814 * 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, 1,506 shares were surrendered during the six months ended June 30, 2021. |
Securities Available for Sale (
Securities Available for Sale (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 (in thousands) Amortized Cost Gross Gross Fair Value Fair Value as % of Total U.S. government agency securities $ 67,914 $ 136 $ 43 $ 68,007 12 % State, county and municipals 228,633 3,651 1,080 231,204 41 % Mortgage-backed securities 175,768 5,271 502 180,537 32 % Corporate debt securities 77,759 4,521 — 82,280 15 % Total $ 550,074 $ 13,579 $ 1,625 $ 562,028 100 % December 31, 2020 (in thousands) Amortized Cost Gross Gross Fair Value Fair Value as % of Total U.S. government agency securities $ 63,162 $ 289 $ — $ 63,451 12 % State, county and municipals 226,493 5,386 11 231,868 43 % Mortgage-backed securities 156,148 6,425 78 162,495 30 % Corporate debt securities 76,073 5,450 — 81,523 15 % Total $ 521,876 $ 17,550 $ 89 $ 539,337 100 % |
Schedule of unrealized losses and fair value of securities AFS | 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, 2021 Less than 12 months 12 months or more Total ($ in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Number of U.S. government agency securities $ 16,427 $ 43 $ — $ — $ 16,427 $ 43 1 State, county and municipals 61,025 1,080 — — 61,025 1,080 80 Mortgage-backed securities 42,092 491 854 11 42,946 502 43 Total $ 119,544 $ 1,614 $ 854 $ 11 $ 120,398 $ 1,625 124 December 31, 2020 Less than 12 months 12 months or more Total ($ in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Number of State, county and municipals $ 5,181 $ 11 $ — $ — $ 5,181 $ 11 9 Mortgage-backed securities 10,612 71 492 7 11,104 78 22 Total $ 15,793 $ 82 $ 492 $ 7 $ 16,285 $ 89 31 |
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, 2021 (in thousands) Amortized Cost Fair Value Due in less than one year $ 75,485 $ 75,771 Due in one year through five years 157,313 162,657 Due after five years through ten years 134,810 135,132 Due after ten years 6,698 7,931 374,306 381,491 Mortgage-backed securities 175,768 180,537 Securities AFS $ 550,074 $ 562,028 |
Loans, Allowance for Credit L_2
Loans, Allowance for Credit Losses - Loans, and Credit Quality (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Schedule of loan composition by portfolio segment | The loan composition is summarized as follows. June 30, 2021 December 31, 2020 (in thousands) Amount % of Amount % of Commercial & industrial $ 736,169 26 % $ 750,718 27 % Paycheck Protection Program (“PPP”) loans 150,287 5 186,016 7 Owner-occupied commercial real estate (“CRE”) 520,299 18 521,300 19 Agricultural 110,664 4 109,629 4 CRE investment 505,588 18 460,721 16 Construction & land development 140,588 5 131,283 5 Residential construction 46,646 2 41,707 1 Residential first mortgage 471,354 17 444,155 16 Residential junior mortgage 104,218 4 111,877 4 Retail & other 34,518 1 31,695 1 Loans 2,820,331 100 % 2,789,101 100 % Less allowance for credit losses - Loans (“ACL-Loans”) 32,561 32,173 Loans, net $ 2,787,770 $ 2,756,928 Allowance for credit losses - Loans to loans 1.15 % 1.15 % |
Schedule of changes in allowance for credit losses by portfolio segment | A roll forward of the allowance for credit losses - loans is summarized as follows. Three Months Ended Six Months Ended Year Ended (in thousands) June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 December 31, 2020 Beginning balance $ 32,626 $ 26,202 $ 32,173 $ 13,972 $ 13,972 Adoption of CECL — — — 8,488 8,488 Initial PCD ACL — — — 797 797 Total impact - adoption CECL — — — 9,285 9,285 Provision for credit losses — 3,000 500 6,000 10,300 Charge-offs (235) (123) (329) (216) (1,689) Recoveries 170 51 217 89 305 Net (charge-offs) recoveries (65) (72) (112) (127) (1,384) Ending balance $ 32,561 $ 29,130 $ 32,561 $ 29,130 $ 32,173 The following tables present the balance and activity in the ACL-Loans by portfolio segment. Six Months Ended June 30, 2021 (in thousands) Commercial Owner- Agricultural CRE Construction & land Residential Residential Residential Retail Total ACL-Loans * Beginning balance $ 11,644 $ 5,872 $ 1,395 $ 5,441 $ 984 $ 421 $ 4,773 $ 1,086 $ 557 $ 32,173 Provision (1,537) (367) 68 940 267 183 535 164 247 500 Charge-offs (209) — (48) (4) — — — — (68) (329) Recoveries 173 — — 2 — — 12 3 27 217 Net (charge-offs) recoveries (36) — (48) (2) — — 12 3 (41) (112) Ending balance $ 10,071 $ 5,505 $ 1,415 $ 6,379 $ 1,251 $ 604 $ 5,320 $ 1,253 $ 763 $ 32,561 As % of ACL-Loans 31 % 17 % 4 % 20 % 4 % 2 % 16 % 4 % 2 % 100 % *The PPP loans are fully guaranteed by the SBA; thus, no ACL-Loans has been allocated to these loans. Year Ended December 31, 2020 (in thousands) Commercial Owner- Agricultural CRE Construction Residential Residential Residential Retail & 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 3,106 2,062 455 2,061 519 (71) 1,809 151 208 10,300 Charge-offs (812) (530) — (190) — — (2) — (155) (1,689) Recoveries 120 81 — — — — 11 67 26 305 Net (charge-offs) recoveries (692) (449) — (190) — — 9 67 (129) (1,384) Ending balance $ 11,644 $ 5,872 $ 1,395 $ 5,441 $ 984 $ 421 $ 4,773 $ 1,086 $ 557 $ 32,173 As % of ACL-Loans 36 % 18 % 4 % 17 % 3 % 1 % 15 % 4 % 2 % 100 % |
Schedule of collateral dependent loans by portfolio segment | The following tables present collateral dependent loans by portfolio segment and collateral type, including those loans with and without a related allowance allocation. June 30, 2021 Collateral Type (in thousands) Real Estate Other Business Assets Total Without an Allowance With an Allowance Allowance Allocation Commercial & industrial $ — $ 475 $ 475 $ 450 $ 25 $ 1 PPP loans — — — — — — Owner-occupied CRE 3,164 — 3,164 3,164 — — Agricultural 967 648 1,615 — 1,615 56 CRE investment 1,567 — 1,567 1,567 — — Construction & land development 389 — 389 389 — — Residential construction — — — — — — Residential first mortgage 1,639 — 1,639 1,639 — — Residential junior mortgage 166 — 166 166 — — Retail & other — — — — — — Total loans $ 7,892 $ 1,123 $ 9,015 $ 7,375 $ 1,640 $ 57 December 31, 2020 Collateral Type (in thousands) Real Estate Other Business Assets Total Without an Allowance With an Allowance Allowance Allocation Commercial & industrial $ — $ 2,195 $ 2,195 $ 501 $ 1,694 $ 1,241 PPP loans — — — — — — Owner-occupied CRE 3,519 — 3,519 3,519 — — Agricultural 584 797 1,381 1,378 3 3 CRE investment 1,474 — 1,474 1,474 — — Construction & land development 308 — 308 308 — — Residential construction — — — — — — Residential first mortgage — — — — — — Residential junior mortgage — — — — — — Retail & other — — — — — — Total loans $ 5,885 $ 2,992 $ 8,877 $ 7,180 $ 1,697 $ 1,244 |
Schedule of past due loans by portfolio segment | The following tables present past due loans by portfolio segment. June 30, 2021 (in thousands) 30-89 Days Past 90 Days & Over or nonaccrual Current Total Commercial & industrial $ 231 $ 1,110 $ 734,828 $ 736,169 PPP loans — — 150,287 150,287 Owner-occupied CRE — 1,625 518,674 520,299 Agricultural — 1,820 108,844 110,664 CRE investment — 743 504,845 505,588 Construction & land development 32 326 140,230 140,588 Residential construction — — 46,646 46,646 Residential first mortgage 370 1,135 469,849 471,354 Residential junior mortgage 31 113 104,074 104,218 Retail & other 66 60 34,392 34,518 Total loans $ 730 $ 6,932 $ 2,812,669 $ 2,820,331 Percent of total loans — % 0.3 % 99.7 % 100.0 % December 31, 2020 (in thousands) 30-89 Days Past 90 Days & Over or nonaccrual Current Total Commercial & industrial $ — $ 2,646 $ 748,072 $ 750,718 PPP loans — — 186,016 186,016 Owner-occupied CRE — 1,869 519,431 521,300 Agricultural 7 1,830 107,792 109,629 CRE investment — 1,488 459,233 460,721 Construction & land development — 327 130,956 131,283 Residential construction — — 41,707 41,707 Residential first mortgage 613 823 442,719 444,155 Residential junior mortgage 43 384 111,450 111,877 Retail & other 102 88 31,505 31,695 Total loans $ 765 $ 9,455 $ 2,778,881 $ 2,789,101 Percent of total loans — % 0.4 % 99.6 % 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, 2021 December 31, 2020 (in thousands) Nonaccrual Loans % of Total Nonaccrual Loans % of Total Commercial & industrial $ 1,110 16 % $ 2,646 28 % PPP loans — — — — Owner-occupied CRE 1,625 23 1,869 20 Agricultural 1,820 26 1,830 19 CRE investment 743 11 1,488 16 Construction & land development 326 5 327 3 Residential construction — — — — Residential first mortgage 1,135 16 823 9 Residential junior mortgage 113 2 384 4 Retail & other 60 1 88 1 Nonaccrual loans $ 6,932 100 % $ 9,455 100 % Percent of total loans 0.3 % 0.4 % |
Schedule of loans by loan risk categories by portfolio segment | The following tables present total loans by risk categories and year of origination. June 30, 2021 Amortized Cost Basis by Origination Year (in thousands) 2021 2020 2019 2018 2017 Prior Revolving Revolving to Term TOTAL Commercial & industrial (a) Grades 1-4 $ 202,033 $ 152,425 $ 102,212 $ 83,827 $ 61,276 $ 52,122 $ 205,187 $ — $ 859,082 Grade 5 332 2,104 2,938 4,103 4,983 1,244 8,664 — 24,368 Grade 6 646 62 14 34 — 54 453 — 1,263 Grade 7 — 20 559 247 656 261 — — 1,743 Total $ 203,011 $ 154,611 $ 105,723 $ 88,211 $ 66,915 $ 53,681 $ 214,304 $ — $ 886,456 Owner-occupied CRE Grades 1-4 $ 52,332 $ 80,254 $ 70,356 $ 71,906 $ 54,680 $ 163,041 $ 1,020 $ — $ 493,589 Grade 5 — 1,391 1,303 958 2,450 10,812 — — 16,914 Grade 6 — — — — 1,682 241 — — 1,923 Grade 7 — 2,949 166 — 942 3,816 — — 7,873 Total $ 52,332 $ 84,594 $ 71,825 $ 72,864 $ 59,754 $ 177,910 $ 1,020 $ — $ 520,299 Agricultural Grades 1-4 $ 6,430 $ 13,218 $ 5,132 $ 7,300 $ 8,933 $ 33,511 $ 22,697 $ — $ 97,221 Grade 5 382 295 — 669 221 7,457 456 — 9,480 Grade 6 — — — — — — — — — Grade 7 — — — 25 324 3,516 98 — 3,963 Total $ 6,812 $ 13,513 $ 5,132 $ 7,994 $ 9,478 $ 44,484 $ 23,251 $ — $ 110,664 CRE investment Grades 1-4 $ 106,420 $ 80,996 $ 63,133 $ 26,878 $ 47,690 $ 137,969 $ 5,331 $ — $ 468,417 Grade 5 2,276 2,592 1,318 3,089 189 24,740 — — 34,204 Grade 6 — — — — 779 59 — — 838 Grade 7 — — — — 919 1,210 — — 2,129 Total $ 108,696 $ 83,588 $ 64,451 $ 29,967 $ 49,577 $ 163,978 $ 5,331 $ — $ 505,588 Construction & land development Grades 1-4 $ 13,738 $ 79,069 $ 19,516 $ 12,081 $ 1,601 $ 8,456 $ 4,877 $ — $ 139,338 Grade 5 — — — — 504 36 303 — 843 Grade 6 — — — — — — — — — Grade 7 — — — — 18 308 81 — 407 Total $ 13,738 $ 79,069 $ 19,516 $ 12,081 $ 2,123 $ 8,800 $ 5,261 $ — $ 140,588 Residential construction Grades 1-4 $ 21,871 $ 21,354 $ 2,298 $ 460 $ 396 $ 214 $ — $ — $ 46,593 Grade 5 — — — — 53 — — — 53 Grade 6 — — — — — — — — — Grade 7 — — — — — — — — — Total $ 21,871 $ 21,354 $ 2,298 $ 460 $ 449 $ 214 $ — $ — $ 46,646 Residential first mortgage Grades 1-4 $ 101,859 $ 133,749 $ 52,563 $ 31,994 $ 31,315 $ 112,478 $ 242 $ 5 $ 464,205 Grade 5 — — 502 586 457 2,544 — — 4,089 Grade 6 — — — — — — — — — Grade 7 — — 1,808 — 113 1,139 — — 3,060 Total $ 101,859 $ 133,749 $ 54,873 $ 32,580 $ 31,885 $ 116,161 $ 242 $ 5 $ 471,354 Residential junior mortgage Grades 1-4 $ 1,599 $ 3,293 $ 2,387 $ 2,298 $ 679 $ 3,055 $ 89,335 $ 1,262 $ 103,908 Grade 5 — — — — — 31 — — 31 Grade 6 — — — — — — — — — Grade 7 — — 166 — 25 47 41 — 279 Total $ 1,599 $ 3,293 $ 2,553 $ 2,298 $ 704 $ 3,133 $ 89,376 $ 1,262 $ 104,218 Retail & other Grades 1-4 $ 6,923 $ 4,687 $ 4,241 $ 1,332 $ 1,434 $ 1,752 $ 14,089 $ — $ 34,458 Grade 5 — — — — — — — — — Grade 6 — — — — — — — — — Grade 7 — 11 — — — 49 — — 60 Total $ 6,923 $ 4,698 $ 4,241 $ 1,332 $ 1,434 $ 1,801 $ 14,089 $ — $ 34,518 Total loans $ 516,841 $ 578,469 $ 330,612 $ 247,787 $ 222,319 $ 570,162 $ 352,874 $ 1,267 $ 2,820,331 (a) For purposes of this table at June 30, 2021, the $150 million net carrying value of PPP loans include $139 million originated in 2021 and $11 million originated in 2020, have a Pass risk grade (Grades 1-4) and have been included with the Commercial & industrial loan category. December 31, 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 $ 348,274 $ 121,989 $ 98,920 $ 72,027 $ 21,613 $ 39,454 $ 183,858 $ — $ 886,135 Grade 5 1,416 2,239 4,486 527 1,638 4,151 18,994 — 33,451 Grade 6 69 19 735 5,315 29 32 1,923 — 8,122 Grade 7 334 1,126 1,389 663 122 3,103 2,289 — 9,026 Total $ 350,093 $ 125,373 $ 105,530 $ 78,532 $ 23,402 $ 46,740 $ 207,064 $ — $ 936,734 Owner-occupied CRE Grades 1-4 $ 90,702 $ 74,029 $ 78,013 $ 52,911 $ 45,042 $ 150,624 $ 870 $ — $ 492,191 Grade 5 42 623 1,349 7,541 1,102 5,842 — — 16,499 Grade 6 — — — 1,710 — 706 — — 2,416 Grade 7 2,987 675 176 835 — 5,521 — — 10,194 Total $ 93,731 $ 75,327 $ 79,538 $ 62,997 $ 46,144 $ 162,693 $ 870 $ — $ 521,300 Agricultural Grades 1-4 $ 13,719 $ 5,652 $ 7,580 $ 9,745 $ 2,613 $ 32,702 $ 21,513 $ — $ 93,524 Grade 5 1,034 — 701 169 644 6,131 356 — 9,035 Grade 6 — — — 329 390 — — — 719 Grade 7 — — 26 110 1,111 5,042 62 — 6,351 Total $ 14,753 $ 5,652 $ 8,307 $ 10,353 $ 4,758 $ 43,875 $ 21,931 $ — $ 109,629 CRE investment Grades 1-4 $ 82,518 $ 78,841 $ 40,881 $ 69,643 $ 31,541 $ 137,048 $ 5,255 $ — $ 445,727 Grade 5 — — 47 1,284 1,828 9,073 — — 12,232 Grade 6 — — — 796 — — — — 796 Grade 7 — — — — — 1,966 — — 1,966 Total $ 82,518 $ 78,841 $ 40,928 $ 71,723 $ 33,369 $ 148,087 $ 5,255 $ — $ 460,721 Construction & land development Grades 1-4 $ 67,578 $ 30,733 $ 15,209 $ 2,204 $ 2,083 $ 7,266 $ 3,675 $ — $ 128,748 Grade 5 — 373 660 545 — 23 455 — 2,056 Grade 6 — — — — — — — — — Grade 7 — — — — — 479 — — 479 Total $ 67,578 $ 31,106 $ 15,869 $ 2,749 $ 2,083 $ 7,768 $ 4,130 $ — $ 131,283 Residential construction Grades 1-4 $ 31,687 $ 9,185 $ 395 $ 121 $ — $ 264 $ — $ — $ 41,652 Grade 5 — — — 55 — — — — 55 Grade 6 — — — — — — — — — Grade 7 — — — — — — — — — Total $ 31,687 $ 9,185 $ 395 $ 176 $ — $ 264 $ — $ — $ 41,707 Residential first mortgage Grades 1-4 $ 146,744 $ 64,013 $ 40,388 $ 41,245 $ 41,274 $ 103,094 $ 287 $ 5 $ 437,050 Grade 5 — 925 2,245 256 364 1,714 — — 5,504 Grade 6 — — — — — — — — — Grade 7 — 437 197 16 9 942 — — 1,601 Total $ 146,744 $ 65,375 $ 42,830 $ 41,517 $ 41,647 $ 105,750 $ 287 $ 5 $ 444,155 Residential junior mortgage Grades 1-4 $ 4,936 $ 4,338 $ 3,663 $ 1,060 $ 869 $ 3,131 $ 91,816 $ 1,648 $ 111,461 Grade 5 — — — — — 32 — — 32 Grade 6 — — — — — — — — — Grade 7 — — — 27 — 232 125 — 384 Total $ 4,936 $ 4,338 $ 3,663 $ 1,087 $ 869 $ 3,395 $ 91,941 $ 1,648 $ 111,877 Retail & other Grades 1-4 $ 8,083 $ 5,213 $ 1,942 $ 1,676 $ 752 $ 1,339 $ 12,602 $ — $ 31,607 Grade 5 — — — — — — — — — Grade 6 — — — — — — — — — Grade 7 16 — 22 — — 50 — — 88 Total $ 8,099 $ 5,213 $ 1,964 $ 1,676 $ 752 $ 1,389 $ 12,602 $ — $ 31,695 Total loans $ 800,139 $ 400,410 $ 299,024 $ 270,810 $ 153,024 $ 519,961 $ 344,080 $ 1,653 $ 2,789,101 (a) For purposes of this table, the $186 million net carrying value of PPP loans at December 31, 2020 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, 2021 (in thousands) Grades 1- 4 Grade 5 Grade 6 Grade 7 Total Commercial & industrial $ 708,795 $ 24,368 $ 1,263 $ 1,743 $ 736,169 PPP loans 150,287 — — — 150,287 Owner-occupied CRE 493,589 16,914 1,923 7,873 520,299 Agricultural 97,221 9,480 — 3,963 110,664 CRE investment 468,417 34,204 838 2,129 505,588 Construction & land development 139,338 843 — 407 140,588 Residential construction 46,593 53 — — 46,646 Residential first mortgage 464,205 4,089 — 3,060 471,354 Residential junior mortgage 103,908 31 — 279 104,218 Retail & other 34,458 — — 60 34,518 Total loans $ 2,706,811 $ 89,982 $ 4,024 $ 19,514 $ 2,820,331 Percent of total 96.0 % 3.2 % 0.1 % 0.7 % 100.0 % December 31, 2020 (in thousands) Grades 1- 4 Grade 5 Grade 6 Grade 7 Total Commercial & industrial $ 700,119 $ 33,451 $ 8,122 $ 9,026 $ 750,718 PPP loans 186,016 — — — 186,016 Owner-occupied CRE 492,191 16,499 2,416 10,194 521,300 Agricultural 93,524 9,035 719 6,351 109,629 CRE investment 445,727 12,232 796 1,966 460,721 Construction & land development 128,748 2,056 — 479 131,283 Residential construction 41,652 55 — — 41,707 Residential first mortgage 437,050 5,504 — 1,601 444,155 Residential junior mortgage 111,461 32 — 384 111,877 Retail & other 31,607 — — 88 31,695 Total loans $ 2,668,095 $ 78,864 $ 12,053 $ 30,089 $ 2,789,101 Percent of total 95.7 % 2.8 % 0.4 % 1.1 % 100.0 % |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles and Mortgage Servicing Rights (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 December 31, 2020 Goodwill $ 163,151 $ 163,151 Core deposit intangibles 7,449 8,837 Customer list intangibles 3,111 3,365 Other intangibles 10,560 12,202 Goodwill and other intangibles, net $ 173,711 $ 175,353 |
Schedule of goodwill | A summary of goodwill was as follows. During 2020, goodwill increased due to the Advantage acquisition. See Note 2 for additional information on the Company’s acquisitions. Six Months Ended Year Ended (in thousands) June 30, 2021 December 31, 2020 Goodwill: Goodwill at beginning of year $ 163,151 $ 151,198 Acquisition — 11,953 Goodwill at end of period $ 163,151 $ 163,151 |
Schedule of other intangible assets | Six Months Ended Year Ended (in thousands) June 30, 2021 December 31, 2020 Core deposit intangibles: Gross carrying amount $ 31,715 $ 31,715 Accumulated amortization (24,266) (22,878) Net book value $ 7,449 $ 8,837 Additions during the period $ — $ 1,000 Amortization during the period $ 1,388 $ 3,060 Customer list intangibles: Gross carrying amount $ 5,523 $ 5,523 Accumulated amortization (2,412) (2,158) Net book value $ 3,111 $ 3,365 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, 2021 December 31, 2020 Mortgage servicing rights ("MSR") asset: MSR asset at beginning of year $ 10,230 $ 5,919 Capitalized MSR 2,294 5,256 MSR asset acquired — 529 Amortization during the period (1,029) (1,474) MSR asset at end of period $ 11,495 $ 10,230 Valuation allowance at beginning of year $ (1,000) $ — Additions (500) (1,000) Valuation allowance at end of period $ (1,500) $ (1,000) MSR asset, net $ 9,995 $ 9,230 Fair value of MSR asset at end of period $ 12,214 $ 9,276 Residential mortgage loans serviced for others $ 1,335,522 $ 1,250,206 Net book value of MSR asset to loans serviced for others 0.75 % 0.74 % |
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, 2021. 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, 2021 (remaining six months) $ 1,255 $ 253 $ 901 2022 2,150 507 1,942 2023 1,633 483 1,855 2024 1,130 449 1,796 2025 670 449 1,134 2026 317 249 1,044 Thereafter 294 721 2,823 Total $ 7,449 $ 3,111 $ 11,495 |
Short and Long-Term Borrowings
Short and Long-Term Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of components of long-term borrowings | The components of long-term borrowings were as follows. (in thousands) June 30, 2021 December 31, 2020 FHLB advances $ 20,000 $ 29,000 Junior subordinated debentures 25,108 24,869 Total long-term borrowings $ 45,108 $ 53,869 |
Schedule of junior subordinated debentures | Junior Subordinated Debentures June 30, 2021 December 31, 2020 (in thousands) Maturity Par Unamortized Carrying Carrying 2005 Mid-Wisconsin Financial Services, Inc. (1) 12/15/2035 $ 10,310 $ (2,873) $ 7,437 $ 7,338 2006 Baylake Corp. (2) 9/30/2036 16,598 (3,529) 13,069 12,951 2004 First Menasha Bancshares, Inc. (3) 3/17/2034 5,155 (553) 4,602 4,580 Total $ 32,063 $ (6,955) $ 25,108 $ 24,869 (1) 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 1.55% and 1.65% as of June 30, 2021 and December 31, 2020, respectively. (2) 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 1.50% and 1.59% as of June 30, 2021 and December 31, 2020, respectively. (3) 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 2.91% and 3.02% as of June 30, 2021 and December 31, 2020, respectively. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 U.S. government agency securities $ 68,007 $ — $ 68,007 $ — State, county and municipals 231,204 — 231,204 — Mortgage-backed securities 180,537 — 180,537 — Corporate debt securities 82,280 — 79,150 3,130 Securities AFS $ 562,028 $ — $ 558,898 $ 3,130 Other investments (equity securities) $ 9,116 $ 9,116 $ — $ — December 31, 2020 U.S. government agency securities $ 63,451 $ — $ 63,451 $ — State, county and municipals 231,868 — 231,868 — Mortgage-backed securities 162,495 — 162,495 — Corporate debt securities 81,523 — 78,393 3,130 Securities AFS $ 539,337 $ — $ 536,207 $ 3,130 Other investments (equity securities) $ 3,567 $ 3,567 $ — $ — |
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, 2021 Collateral dependent loans $ 8,958 $ — $ — $ 8,958 Other real estate owned (“OREO”) 2,895 — — 2,895 MSR asset 9,995 — — 9,995 December 31, 2020 Collateral dependent loans $ 7,633 $ — $ — $ 7,633 OREO 3,608 — — 3,608 MSR asset 9,230 — — 9,230 |
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, 2021 (in thousands) Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 792,406 $ 792,406 $ 792,406 $ — $ — Certificates of deposit in other banks 23,387 24,948 — 24,948 — Securities AFS 562,028 562,028 — 558,898 3,130 Other investments, including equity securities 33,440 33,440 9,116 20,115 4,209 Loans held for sale 11,235 11,537 — 11,537 — Loans, net 2,787,770 2,843,744 — — 2,843,744 MSR asset 9,995 12,214 — — 12,214 Financial liabilities: Deposits $ 3,939,022 $ 3,945,358 $ — $ — $ 3,945,358 Long-term borrowings 45,108 45,350 — 20,242 25,108 December 31, 2020 (in thousands) Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 802,859 $ 802,859 $ 802,859 $ — $ — Certificates of deposit in other banks 29,521 31,053 — 31,053 — Securities AFS 539,337 539,337 — 536,207 3,130 Other investments, including equity securities 27,619 27,619 3,567 20,155 3,897 Loans held for sale 21,450 22,329 — 22,329 — Loans, net 2,756,928 2,834,452 — — 2,834,452 MSR asset 9,230 9,276 — — 9,276 Financial liabilities: Deposits $ 3,910,399 $ 3,917,121 $ — $ — $ 3,917,121 Long-term borrowings 53,869 53,859 — 29,488 24,371 |
Acquisitions (Details)
Acquisitions (Details) $ / shares in Units, $ in Thousands | Aug. 21, 2020USD ($)Branch | Dec. 31, 2021$ / sharesshares | Sep. 30, 2021$ / sharesshares | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2021USD ($) | Aug. 20, 2020 |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 0 | $ 11,953 | |||||
Assets | 4,587,347 | 4,551,789 | |||||
Loans | 2,787,770 | 2,756,928 | |||||
Deposits | 3,939,022 | 3,910,399 | |||||
Equity | $ 559,395 | $ 539,189 | |||||
Advantage | |||||||
Business Acquisition [Line Items] | |||||||
Number of branches | Branch | 4 | ||||||
Assets acquired | $ 172,000 | ||||||
Loans acquired | 88,000 | ||||||
Deposits acquired | 141,000 | ||||||
Goodwill | 12,000 | ||||||
Advantage | Core deposit intangibles | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets acquired | $ 1,000 | ||||||
Mackinac | Forecast | |||||||
Business Acquisition [Line Items] | |||||||
Consideration, shares portion (in shares) | shares | 0.22 | ||||||
Consideration, cash portion (in dollars per share) | $ / shares | $ 4.64 | ||||||
Consideration, cash portion, percentage | 20.00% | ||||||
Consideration, shares portion, percentage | 80.00% | ||||||
County | Forecast | |||||||
Business Acquisition [Line Items] | |||||||
Consideration, shares portion (in shares) | shares | 0.48 | ||||||
Consideration, cash portion (in dollars per share) | $ / shares | $ 37.18 | ||||||
Consideration, cash portion, percentage | 20.00% | ||||||
Consideration, shares portion, percentage | 80.00% | ||||||
Advantage | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of assets represented by acquiree | 0.04 | ||||||
Mackinac | |||||||
Business Acquisition [Line Items] | |||||||
Assets | $ 1,500,000 | ||||||
Loans | 1,100,000 | ||||||
Deposits | 1,300,000 | ||||||
Equity | 170,000 | ||||||
County | |||||||
Business Acquisition [Line Items] | |||||||
Assets | 1,500,000 | ||||||
Loans | 1,000,000 | ||||||
Deposits | 1,100,000 | ||||||
Equity | $ 166,000 |
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, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to Nicolet Bankshares, Inc. | $ 18,284 | $ 13,478 | $ 36,523 | $ 24,033 |
Weighted average common shares outstanding (in shares) | 9,901,614 | 10,417,226 | 9,949,359 | 10,466,590 |
Effect of dilutive common stock awards (in shares) | 424,000 | 103,000 | 416,000 | 192,000 |
Diluted weighted average common shares outstanding (in shares) | 10,325,699 | 10,519,739 | 10,364,629 | 10,659,318 |
Basic earnings per common share (in dollars per share) | $ 1.85 | $ 1.29 | $ 3.67 | $ 2.30 |
Diluted earnings per common share (in dollars per share) | $ 1.77 | $ 1.28 | $ 3.52 | $ 2.25 |
Earnings per Common Share - Nar
Earnings per Common Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Shares excluded from calculation of earnings per common share (in shares) | 0.1 | 0.2 | 0.1 | 0.1 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares were available for grant (in shares) | 900,000 | |
Stock-based compensation expense | $ 2.7 | $ 2.6 |
Unrecognized compensation cost | $ 17.8 | |
Remaining vesting period over which cost expected to be recognized | 4 years | |
Tax benefit for impact of share based compensation | $ 0.3 | 0.3 |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total intrinsic value of options exercised | $ 1.5 | 1.9 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock grant (in shares) | 18,562 | |
Restricted Stock | Director | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 0.7 | $ 0.4 |
Restricted stock grant (in shares) | 8,562 | 7,950 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted average assumptions (Details) - Stock Incentive Plan - Stock Options - $ / shares | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Expected volatility | 30.00% | 25.00% |
Risk-free interest rate | 1.16% | 1.67% |
Expected average life (in years) | 7 years | 7 years |
Weighted average per share fair value of options (in dollars per share) | $ 26.55 | $ 21.83 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock option activity (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($)$ / sharesshares | |
Weighted Average Exercise Price | |
Shares surrendered to satisfy exercise price and/or tax withholding requirements (in shares) | 5,607 |
Stock Incentive Plan | Stock Options | |
Option Shares Outstanding | |
Beginning balance outstanding (in shares) | 1,437,460 |
Granted (in shares) | 380,000 |
Exercise of stock options (in shares) | (36,482) |
Forfeited (in shares) | (1,000) |
Ending balance outstanding (in shares) | 1,779,978 |
Weighted Average Exercise Price | |
Beginning balance outstanding (in dollars per share) | $ / shares | $ 50.47 |
Granted (in dollars per share) | $ / shares | 78.77 |
Exercise of stock options (in dollars per share) | $ / shares | 33.58 |
Forfeited (in dollars per share) | $ / shares | 48.85 |
Ending balance outstanding (in dollars per share) | $ / shares | $ 56.86 |
Exercisable (in shares) | 950,778 |
Exercisable (in dollars per share) | $ / shares | $ 47.20 |
Weighted average remaining life outstanding (in years) | 7 years |
Weighted average remaining life exercisable (in years) | 5 years 8 months 12 days |
Aggregate intrinsic value outstanding | $ | $ 27,295 |
Aggregate intrinsic value exercisable | $ | $ 22,028 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted stock award activity (Details) | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Restricted Shares Outstanding | |
Shares surrendered to satisfy exercise price and/or tax withholding requirements (in shares) | 5,607 |
Restricted Stock | |
Weighted Average Grant Date Fair Value | |
Beginning balance outstanding (in dollars per share) | $ / shares | $ 53.57 |
Granted (in dollars per share) | $ / shares | 77.92 |
Vested (in dollars per share) | $ / shares | 59.90 |
Forfeited (in dollars per share) | $ / shares | 41.44 |
Ending balance outstanding (in dollars per share) | $ / shares | $ 69.67 |
Restricted Shares Outstanding | |
Beginning balance outstanding (in shares) | 18,925 |
Granted (in shares) | 18,562 |
Vested (in shares) | (14,227) |
Forfeited (in shares) | (446) |
Ending balance outstanding (in shares) | 22,814 |
Shares surrendered to satisfy exercise price and/or tax withholding requirements (in shares) | 1,506 |
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, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 550,074 | $ 521,876 |
Gross Unrealized Gains | 13,579 | 17,550 |
Gross Unrealized Losses | 1,625 | 89 |
Fair Value | $ 562,028 | $ 539,337 |
Fair Value as % of Total | 100.00% | 100.00% |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 67,914 | $ 63,162 |
Gross Unrealized Gains | 136 | 289 |
Gross Unrealized Losses | 43 | 0 |
Fair Value | $ 68,007 | $ 63,451 |
Fair Value as % of Total | 12.00% | 12.00% |
State, county and municipals | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 228,633 | $ 226,493 |
Gross Unrealized Gains | 3,651 | 5,386 |
Gross Unrealized Losses | 1,080 | 11 |
Fair Value | $ 231,204 | $ 231,868 |
Fair Value as % of Total | 41.00% | 43.00% |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 175,768 | $ 156,148 |
Gross Unrealized Gains | 5,271 | 6,425 |
Gross Unrealized Losses | 502 | 78 |
Fair Value | $ 180,537 | $ 162,495 |
Fair Value as % of Total | 32.00% | 30.00% |
Corporate Debt Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 77,759 | $ 76,073 |
Gross Unrealized Gains | 4,521 | 5,450 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 82,280 | $ 81,523 |
Fair Value as % of Total | 15.00% | 15.00% |
Securities Available for Sale_2
Securities Available for Sale - Narrative (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Abstract] | |||
Securities AFS pledged as collateral | $ 131,000,000 | $ 146,000,000 | |
Accrued interest on securities AFS | 2,600,000 | 2,300,000 | |
Allowance for credit losses on securities AFS | 0 | $ 0 | |
Gross gains from sales of securities AFS | $ 164,000 | ||
Proceeds from sales of securities AFS | $ 0 | $ 9,232,000 |
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, 2021USD ($)Security | Dec. 31, 2020USD ($)Security |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | $ 119,544 | $ 15,793 |
Less than 12 months, unrealized losses | 1,614 | 82 |
12 months or more, fair value | 854 | 492 |
12 months or more, unrealized losses | 11 | 7 |
Total, fair value | 120,398 | 16,285 |
Total, unrealized losses | $ 1,625 | $ 89 |
Total, number of securities | Security | 124 | 31 |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | $ 16,427 | |
Less than 12 months, unrealized losses | 43 | |
12 months or more, fair value | 0 | |
12 months or more, unrealized losses | 0 | |
Total, fair value | 16,427 | |
Total, unrealized losses | $ 43 | |
Total, number of securities | Security | 1 | |
State, county and municipals | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | $ 61,025 | $ 5,181 |
Less than 12 months, unrealized losses | 1,080 | 11 |
12 months or more, fair value | 0 | 0 |
12 months or more, unrealized losses | 0 | 0 |
Total, fair value | 61,025 | 5,181 |
Total, unrealized losses | $ 1,080 | $ 11 |
Total, number of securities | Security | 80 | 9 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | $ 42,092 | $ 10,612 |
Less than 12 months, unrealized losses | 491 | 71 |
12 months or more, fair value | 854 | 492 |
12 months or more, unrealized losses | 11 | 7 |
Total, fair value | 42,946 | 11,104 |
Total, unrealized losses | $ 502 | $ 78 |
Total, number of securities | Security | 43 | 22 |
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, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Due in less than one year | $ 75,485 | |
Due in one year through five years | 157,313 | |
Due after five years through ten years | 134,810 | |
Due after ten years | 6,698 | |
Allocated and single maturity date | 374,306 | |
Amortized Cost | 550,074 | $ 521,876 |
Fair Value | ||
Due in less than one year | 75,771 | |
Due in one year through five years | 162,657 | |
Due after five years through ten years | 135,132 | |
Due after ten years | 7,931 | |
Allocated and single maturity date | 381,491 | |
Fair Value | 562,028 | 539,337 |
Mortgage-backed securities | ||
Amortized Cost | ||
Mortgage-backed securities | 175,768 | |
Amortized Cost | 175,768 | 156,148 |
Fair Value | ||
Mortgage-backed securities | 180,537 | |
Fair Value | $ 180,537 | $ 162,495 |
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, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 2,820,331 | $ 2,789,101 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | 32,561 | $ 32,626 | 32,173 | $ 29,130 | $ 26,202 | $ 13,972 |
Loans, net | $ 2,787,770 | $ 2,756,928 | ||||
Allowance for credit losses - Loans to loans | 1.15% | 1.15% | ||||
% of Total | 100.00% | 100.00% | ||||
Retail & other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 34,518 | $ 31,695 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 763 | $ 557 | 344 | |||
% of Total | 1.00% | 1.00% | ||||
Commercial | Commercial & industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 736,169 | $ 750,718 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 10,071 | $ 11,644 | 5,471 | |||
% of Total | 26.00% | 27.00% | ||||
Commercial | Paycheck Protection Program (“PPP”) loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 150,287 | $ 186,016 | ||||
% of Total | 5.00% | 7.00% | ||||
Commercial | Owner-occupied commercial real estate (“CRE”) | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 520,299 | $ 521,300 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 5,505 | $ 5,872 | 3,010 | |||
% of Total | 18.00% | 19.00% | ||||
Commercial | Agricultural | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 110,664 | $ 109,629 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 1,415 | $ 1,395 | 579 | |||
% of Total | 4.00% | 4.00% | ||||
Commercial real estate | CRE investment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 505,588 | $ 460,721 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 6,379 | $ 5,441 | 1,600 | |||
% of Total | 18.00% | 16.00% | ||||
Commercial real estate | Construction & land development | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 140,588 | $ 131,283 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 1,251 | $ 984 | 414 | |||
% of Total | 5.00% | 5.00% | ||||
Residential | Residential first mortgage | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 471,354 | $ 444,155 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 5,320 | $ 4,773 | 1,669 | |||
% of Total | 17.00% | 16.00% | ||||
Residential | Residential junior mortgage | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 104,218 | $ 111,877 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 1,253 | $ 1,086 | 517 | |||
% of Total | 4.00% | 4.00% | ||||
Residential | Residential construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 46,646 | $ 41,707 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 604 | $ 421 | $ 368 | |||
% of Total | 2.00% | 1.00% |
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, 2021USD ($)Loan | Dec. 31, 2020USD ($)Loan | |
Receivables [Abstract] | ||
Accrued interest on loans | $ 6,000,000 | $ 7,000,000 |
Material loans criteria for ACL-Loans adequacy calculation | $ 250,000 | |
Number of loans classified as troubled debt | Loan | 12 | 11 |
Troubled debt restructuring current outstanding balance | $ 6,800,000 | $ 5,500,000 |
Troubled debt restructurings, current outstanding balance, nonaccrual | 2,900,000 | 3,400,000 |
Troubled debt restructurings, current outstanding balance, performing | 3,900,000 | 2,100,000 |
Pre-modification balance | $ 7,300,000 | $ 6,500,000 |
Number of loans classified as troubled debt with subsequent default | Loan | 0 |
Loans, Allowance for Credit L_5
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Roll forward of allowance for credit losses-loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | $ 32,626 | $ 26,202 | $ 32,173 | $ 13,972 | $ 13,972 |
Provision for credit losses | 0 | 3,000 | 500 | 6,000 | 10,300 |
Charge-offs | (235) | (123) | (329) | (216) | (1,689) |
Recoveries | 170 | 51 | 217 | 89 | 305 |
Net (charge-offs) recoveries | (65) | (72) | (112) | (127) | (1,384) |
Ending balance | $ 32,561 | $ 29,130 | $ 32,561 | 29,130 | 32,173 |
Total impact - adoption CECL | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 9,285 | 9,285 | |||
Adoption of CECL | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 8,488 | 8,488 | |||
Initial PCD ACL | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | $ 797 | $ 797 |
Loans, Allowance for Credit L_6
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Activity in ACL-Loans by portfolio segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
ACL-Loans | |||||
Beginning balance | $ 32,626 | $ 26,202 | $ 32,173 | $ 13,972 | $ 13,972 |
Provision | 0 | 3,000 | 500 | 6,000 | 10,300 |
Charge-offs | (235) | (123) | (329) | (216) | (1,689) |
Recoveries | 170 | 51 | 217 | 89 | 305 |
Net (charge-offs) recoveries | (65) | (72) | (112) | (127) | (1,384) |
Ending balance | 32,561 | $ 29,130 | $ 32,561 | 29,130 | $ 32,173 |
As % of ACL-Loans | 100.00% | 100.00% | |||
Retail & other | |||||
ACL-Loans | |||||
Beginning balance | $ 557 | 344 | $ 344 | ||
Provision | 247 | 208 | |||
Charge-offs | (68) | (155) | |||
Recoveries | 27 | 26 | |||
Net (charge-offs) recoveries | (41) | (129) | |||
Ending balance | 763 | $ 763 | $ 557 | ||
As % of ACL-Loans | 2.00% | 2.00% | |||
Commercial | Commercial & industrial | |||||
ACL-Loans | |||||
Beginning balance | $ 11,644 | 5,471 | $ 5,471 | ||
Provision | (1,537) | 3,106 | |||
Charge-offs | (209) | (812) | |||
Recoveries | 173 | 120 | |||
Net (charge-offs) recoveries | (36) | (692) | |||
Ending balance | 10,071 | $ 10,071 | $ 11,644 | ||
As % of ACL-Loans | 31.00% | 36.00% | |||
Commercial | Owner-occupied CRE | |||||
ACL-Loans | |||||
Beginning balance | $ 5,872 | 3,010 | $ 3,010 | ||
Provision | (367) | 2,062 | |||
Charge-offs | 0 | (530) | |||
Recoveries | 0 | 81 | |||
Net (charge-offs) recoveries | 0 | (449) | |||
Ending balance | 5,505 | $ 5,505 | $ 5,872 | ||
As % of ACL-Loans | 17.00% | 18.00% | |||
Commercial | Agricultural | |||||
ACL-Loans | |||||
Beginning balance | $ 1,395 | 579 | $ 579 | ||
Provision | 68 | 455 | |||
Charge-offs | (48) | 0 | |||
Recoveries | 0 | 0 | |||
Net (charge-offs) recoveries | (48) | 0 | |||
Ending balance | 1,415 | $ 1,415 | $ 1,395 | ||
As % of ACL-Loans | 4.00% | 4.00% | |||
Commercial real estate | CRE investment | |||||
ACL-Loans | |||||
Beginning balance | $ 5,441 | 1,600 | $ 1,600 | ||
Provision | 940 | 2,061 | |||
Charge-offs | (4) | (190) | |||
Recoveries | 2 | 0 | |||
Net (charge-offs) recoveries | (2) | (190) | |||
Ending balance | 6,379 | $ 6,379 | $ 5,441 | ||
As % of ACL-Loans | 20.00% | 17.00% | |||
Commercial real estate | Construction & land development | |||||
ACL-Loans | |||||
Beginning balance | $ 984 | 414 | $ 414 | ||
Provision | 267 | 519 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Net (charge-offs) recoveries | 0 | 0 | |||
Ending balance | 1,251 | $ 1,251 | $ 984 | ||
As % of ACL-Loans | 4.00% | 3.00% | |||
Residential | Residential first mortgage | |||||
ACL-Loans | |||||
Beginning balance | $ 4,773 | 1,669 | $ 1,669 | ||
Provision | 535 | 1,809 | |||
Charge-offs | 0 | (2) | |||
Recoveries | 12 | 11 | |||
Net (charge-offs) recoveries | 12 | 9 | |||
Ending balance | 5,320 | $ 5,320 | $ 4,773 | ||
As % of ACL-Loans | 16.00% | 15.00% | |||
Residential | Residential junior mortgage | |||||
ACL-Loans | |||||
Beginning balance | $ 1,086 | 517 | $ 517 | ||
Provision | 164 | 151 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 3 | 67 | |||
Net (charge-offs) recoveries | 3 | 67 | |||
Ending balance | 1,253 | $ 1,253 | $ 1,086 | ||
As % of ACL-Loans | 4.00% | 4.00% | |||
Residential | Residential construction | |||||
ACL-Loans | |||||
Beginning balance | $ 421 | 368 | $ 368 | ||
Provision | 183 | (71) | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Net (charge-offs) recoveries | 0 | 0 | |||
Ending balance | $ 604 | $ 604 | $ 421 | ||
As % of ACL-Loans | 2.00% | 1.00% | |||
Adoption of CECL | |||||
ACL-Loans | |||||
Beginning balance | 8,488 | $ 8,488 | |||
Adoption of CECL | Retail & other | |||||
ACL-Loans | |||||
Beginning balance | 134 | 134 | |||
Adoption of CECL | Commercial | Commercial & industrial | |||||
ACL-Loans | |||||
Beginning balance | 2,962 | 2,962 | |||
Adoption of CECL | Commercial | Owner-occupied CRE | |||||
ACL-Loans | |||||
Beginning balance | 1,249 | 1,249 | |||
Adoption of CECL | Commercial | Agricultural | |||||
ACL-Loans | |||||
Beginning balance | 361 | 361 | |||
Adoption of CECL | Commercial real estate | CRE investment | |||||
ACL-Loans | |||||
Beginning balance | 1,970 | 1,970 | |||
Adoption of CECL | Commercial real estate | Construction & land development | |||||
ACL-Loans | |||||
Beginning balance | 51 | 51 | |||
Adoption of CECL | Residential | Residential first mortgage | |||||
ACL-Loans | |||||
Beginning balance | 1,286 | 1,286 | |||
Adoption of CECL | Residential | Residential junior mortgage | |||||
ACL-Loans | |||||
Beginning balance | 351 | 351 | |||
Adoption of CECL | Residential | Residential construction | |||||
ACL-Loans | |||||
Beginning balance | 124 | 124 | |||
Initial PCD ACL | |||||
ACL-Loans | |||||
Beginning balance | 797 | 797 | |||
Initial PCD ACL | Retail & other | |||||
ACL-Loans | |||||
Beginning balance | 0 | 0 | |||
Initial PCD ACL | Commercial | Commercial & industrial | |||||
ACL-Loans | |||||
Beginning balance | 797 | 797 | |||
Initial PCD ACL | Commercial | Owner-occupied CRE | |||||
ACL-Loans | |||||
Beginning balance | 0 | 0 | |||
Initial PCD ACL | Commercial | Agricultural | |||||
ACL-Loans | |||||
Beginning balance | 0 | 0 | |||
Initial PCD ACL | Commercial real estate | CRE investment | |||||
ACL-Loans | |||||
Beginning balance | 0 | 0 | |||
Initial PCD ACL | Commercial real estate | Construction & land development | |||||
ACL-Loans | |||||
Beginning balance | 0 | 0 | |||
Initial PCD ACL | Residential | Residential first mortgage | |||||
ACL-Loans | |||||
Beginning balance | 0 | 0 | |||
Initial PCD ACL | Residential | Residential junior mortgage | |||||
ACL-Loans | |||||
Beginning balance | 0 | 0 | |||
Initial PCD ACL | Residential | Residential construction | |||||
ACL-Loans | |||||
Beginning balance | $ 0 | $ 0 |
Loans, Allowance for Credit L_7
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Collateral dependent loans by portfolio segment (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | $ 9,015 | $ 8,877 |
Without an Allowance | 7,375 | 7,180 |
With an Allowance | 1,640 | 1,697 |
Allowance Allocation | 57 | 1,244 |
Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 7,892 | 5,885 |
Other Business Assets | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 1,123 | 2,992 |
Retail & other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Without an Allowance | 0 | 0 |
With an Allowance | 0 | 0 |
Allowance Allocation | 0 | 0 |
Retail & other | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Retail & other | Other Business Assets | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Commercial | Commercial & industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 475 | 2,195 |
Without an Allowance | 450 | 501 |
With an Allowance | 25 | 1,694 |
Allowance Allocation | 1 | 1,241 |
Commercial | Commercial & industrial | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Commercial | Commercial & industrial | Other Business Assets | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 475 | 2,195 |
Commercial | PPP loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Without an Allowance | 0 | 0 |
With an Allowance | 0 | 0 |
Allowance Allocation | 0 | 0 |
Commercial | PPP loans | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Commercial | PPP loans | Other Business Assets | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Commercial | Owner-occupied CRE | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 3,164 | 3,519 |
Without an Allowance | 3,164 | 3,519 |
With an Allowance | 0 | 0 |
Allowance Allocation | 0 | 0 |
Commercial | Owner-occupied CRE | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 3,164 | 3,519 |
Commercial | Owner-occupied CRE | Other Business Assets | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Commercial | Agricultural | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 1,615 | 1,381 |
Without an Allowance | 0 | 1,378 |
With an Allowance | 1,615 | 3 |
Allowance Allocation | 56 | 3 |
Commercial | Agricultural | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 967 | 584 |
Commercial | Agricultural | Other Business Assets | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 648 | 797 |
Commercial real estate | CRE investment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 1,567 | 1,474 |
Without an Allowance | 1,567 | 1,474 |
With an Allowance | 0 | 0 |
Allowance Allocation | 0 | 0 |
Commercial real estate | CRE investment | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 1,567 | 1,474 |
Commercial real estate | CRE investment | Other Business Assets | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Commercial real estate | Construction & land development | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 389 | 308 |
Without an Allowance | 389 | 308 |
With an Allowance | 0 | 0 |
Allowance Allocation | 0 | 0 |
Commercial real estate | Construction & land development | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 389 | 308 |
Commercial real estate | Construction & land development | Other Business Assets | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Residential | Residential first mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 1,639 | 0 |
Without an Allowance | 1,639 | 0 |
With an Allowance | 0 | 0 |
Allowance Allocation | 0 | 0 |
Residential | Residential first mortgage | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 1,639 | 0 |
Residential | Residential first mortgage | Other Business Assets | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Residential | Residential junior mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 166 | 0 |
Without an Allowance | 166 | 0 |
With an Allowance | 0 | 0 |
Allowance Allocation | 0 | 0 |
Residential | Residential junior mortgage | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 166 | 0 |
Residential | Residential junior mortgage | Other Business Assets | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Residential | Residential construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Without an Allowance | 0 | 0 |
With an Allowance | 0 | 0 |
Allowance Allocation | 0 | 0 |
Residential | Residential construction | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Residential | Residential construction | Other Business Assets | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | $ 0 | $ 0 |
Loans, Allowance for Credit L_8
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Summary of loans by past due status (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 2,820,331 | $ 2,789,101 |
Percent of total loans | 100.00% | 100.00% |
30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 730 | $ 765 |
Percent past due | 0.00% | 0.00% |
90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 6,932 | $ 9,455 |
Percent past due | 0.30% | 0.40% |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 2,812,669 | $ 2,778,881 |
Percent of current loans | 99.70% | 99.60% |
Retail & other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 34,518 | $ 31,695 |
Retail & other | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 66 | 102 |
Retail & other | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 60 | 88 |
Retail & other | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 34,392 | 31,505 |
Commercial | Commercial & industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 736,169 | 750,718 |
Commercial | Commercial & industrial | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 231 | 0 |
Commercial | Commercial & industrial | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,110 | 2,646 |
Commercial | Commercial & industrial | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 734,828 | 748,072 |
Commercial | PPP loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 150,287 | 186,016 |
Commercial | PPP loans | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Commercial | PPP loans | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Commercial | PPP loans | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 150,287 | 186,016 |
Commercial | Owner-occupied CRE | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 520,299 | 521,300 |
Commercial | Owner-occupied CRE | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Commercial | Owner-occupied CRE | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,625 | 1,869 |
Commercial | Owner-occupied CRE | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 518,674 | 519,431 |
Commercial | Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 110,664 | 109,629 |
Commercial | Agricultural | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 7 |
Commercial | Agricultural | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,820 | 1,830 |
Commercial | Agricultural | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 108,844 | 107,792 |
Commercial real estate | CRE investment | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 505,588 | 460,721 |
Commercial real estate | CRE investment | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Commercial real estate | CRE investment | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 743 | 1,488 |
Commercial real estate | CRE investment | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 504,845 | 459,233 |
Commercial real estate | Construction & land development | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 140,588 | 131,283 |
Commercial real estate | Construction & land development | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 32 | 0 |
Commercial real estate | Construction & land development | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 326 | 327 |
Commercial real estate | Construction & land development | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 140,230 | 130,956 |
Residential | Residential first mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 471,354 | 444,155 |
Residential | Residential first mortgage | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 370 | 613 |
Residential | Residential first mortgage | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,135 | 823 |
Residential | Residential first mortgage | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 469,849 | 442,719 |
Residential | Residential junior mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 104,218 | 111,877 |
Residential | Residential junior mortgage | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 31 | 43 |
Residential | Residential junior mortgage | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 113 | 384 |
Residential | Residential junior mortgage | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 104,074 | 111,450 |
Residential | Residential construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 46,646 | 41,707 |
Residential | Residential construction | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Residential | Residential construction | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Residential | Residential construction | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 46,646 | $ 41,707 |
Loans, Allowance for Credit L_9
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Nonaccrual loans by portfolio segment (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 6,932 | $ 9,455 |
Percent of total loans | 0.30% | 0.40% |
% of Total | 100.00% | 100.00% |
Retail & other | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 60 | $ 88 |
% of Total | 1.00% | 1.00% |
Commercial | Commercial & industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 1,110 | $ 2,646 |
% of Total | 16.00% | 28.00% |
Commercial | PPP loans | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 0 | $ 0 |
% of Total | 0.00% | 0.00% |
Commercial | Owner-occupied CRE | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 1,625 | $ 1,869 |
% of Total | 23.00% | 20.00% |
Commercial | Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 1,820 | $ 1,830 |
% of Total | 26.00% | 19.00% |
Commercial real estate | CRE investment | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 743 | $ 1,488 |
% of Total | 11.00% | 16.00% |
Commercial real estate | Construction & land development | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 326 | $ 327 |
% of Total | 5.00% | 3.00% |
Residential | Residential construction | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 0 | $ 0 |
% of Total | 0.00% | 0.00% |
Residential | Residential first mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 1,135 | $ 823 |
% of Total | 16.00% | 9.00% |
Residential | Residential junior mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 113 | $ 384 |
% of Total | 2.00% | 4.00% |
Loans, Allowance for Credit _10
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Summary of loans by loan risk categories (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | $ 516,841 | $ 800,139 |
2020/2019 | 578,469 | 400,410 |
2019/2018 | 330,612 | 299,024 |
2018/2017 | 247,787 | 270,810 |
2017/2016 | 222,319 | 153,024 |
Prior | 570,162 | 519,961 |
Revolving | 352,874 | 344,080 |
Revolving to Term | 1,267 | 1,653 |
Loans | $ 2,820,331 | $ 2,789,101 |
Percent of total | 100.00% | 100.00% |
Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 2,706,811 | $ 2,668,095 |
Percent of total | 96.00% | 95.70% |
Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 89,982 | $ 78,864 |
Percent of total | 3.20% | 2.80% |
Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 4,024 | $ 12,053 |
Percent of total | 0.10% | 0.40% |
Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 19,514 | $ 30,089 |
Percent of total | 0.70% | 1.10% |
Retail & other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | $ 6,923 | $ 8,099 |
2020/2019 | 4,698 | 5,213 |
2019/2018 | 4,241 | 1,964 |
2018/2017 | 1,332 | 1,676 |
2017/2016 | 1,434 | 752 |
Prior | 1,801 | 1,389 |
Revolving | 14,089 | 12,602 |
Revolving to Term | 0 | 0 |
Loans | 34,518 | 31,695 |
Retail & other | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 6,923 | 8,083 |
2020/2019 | 4,687 | 5,213 |
2019/2018 | 4,241 | 1,942 |
2018/2017 | 1,332 | 1,676 |
2017/2016 | 1,434 | 752 |
Prior | 1,752 | 1,339 |
Revolving | 14,089 | 12,602 |
Revolving to Term | 0 | 0 |
Loans | 34,458 | 31,607 |
Retail & other | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 0 | 0 |
2017/2016 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 0 | 0 |
Retail & other | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 0 | 0 |
2017/2016 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 0 | 0 |
Retail & other | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 16 |
2020/2019 | 11 | 0 |
2019/2018 | 0 | 22 |
2018/2017 | 0 | 0 |
2017/2016 | 0 | 0 |
Prior | 49 | 50 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 60 | 88 |
Commercial | Commercial & industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 203,011 | 350,093 |
2020/2019 | 154,611 | 125,373 |
2019/2018 | 105,723 | 105,530 |
2018/2017 | 88,211 | 78,532 |
2017/2016 | 66,915 | 23,402 |
Prior | 53,681 | 46,740 |
Revolving | 214,304 | 207,064 |
Revolving to Term | 0 | 0 |
Loans | 886,456 | 936,734 |
Commercial | Commercial & industrial | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 202,033 | 348,274 |
2020/2019 | 152,425 | 121,989 |
2019/2018 | 102,212 | 98,920 |
2018/2017 | 83,827 | 72,027 |
2017/2016 | 61,276 | 21,613 |
Prior | 52,122 | 39,454 |
Revolving | 205,187 | 183,858 |
Revolving to Term | 0 | 0 |
Loans | 859,082 | 886,135 |
Commercial | Commercial & industrial | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 332 | 1,416 |
2020/2019 | 2,104 | 2,239 |
2019/2018 | 2,938 | 4,486 |
2018/2017 | 4,103 | 527 |
2017/2016 | 4,983 | 1,638 |
Prior | 1,244 | 4,151 |
Revolving | 8,664 | 18,994 |
Revolving to Term | 0 | 0 |
Loans | 24,368 | 33,451 |
Commercial | Commercial & industrial | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 646 | 69 |
2020/2019 | 62 | 19 |
2019/2018 | 14 | 735 |
2018/2017 | 34 | 5,315 |
2017/2016 | 0 | 29 |
Prior | 54 | 32 |
Revolving | 453 | 1,923 |
Revolving to Term | 0 | 0 |
Loans | 1,263 | 8,122 |
Commercial | Commercial & industrial | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 334 |
2020/2019 | 20 | 1,126 |
2019/2018 | 559 | 1,389 |
2018/2017 | 247 | 663 |
2017/2016 | 656 | 122 |
Prior | 261 | 3,103 |
Revolving | 0 | 2,289 |
Revolving to Term | 0 | 0 |
Loans | 1,743 | 9,026 |
Commercial | Commercial & industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 736,169 | 750,718 |
Commercial | Commercial & industrial | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 708,795 | 700,119 |
Commercial | Commercial & industrial | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 24,368 | 33,451 |
Commercial | Commercial & industrial | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,263 | 8,122 |
Commercial | Commercial & industrial | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,743 | 9,026 |
Commercial | Paycheck Protection Program (“PPP”) loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 150,287 | 186,016 |
Commercial | Paycheck Protection Program (“PPP”) loans | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 139,000 | 186,000 |
2020/2019 | 11,000 | |
Loans | 150,287 | 186,016 |
Commercial | Paycheck Protection Program (“PPP”) loans | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Commercial | Paycheck Protection Program (“PPP”) loans | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Commercial | Paycheck Protection Program (“PPP”) loans | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Commercial | Owner-occupied CRE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 52,332 | 93,731 |
2020/2019 | 84,594 | 75,327 |
2019/2018 | 71,825 | 79,538 |
2018/2017 | 72,864 | 62,997 |
2017/2016 | 59,754 | 46,144 |
Prior | 177,910 | 162,693 |
Revolving | 1,020 | 870 |
Revolving to Term | 0 | 0 |
Loans | 520,299 | 521,300 |
Commercial | Owner-occupied CRE | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 52,332 | 90,702 |
2020/2019 | 80,254 | 74,029 |
2019/2018 | 70,356 | 78,013 |
2018/2017 | 71,906 | 52,911 |
2017/2016 | 54,680 | 45,042 |
Prior | 163,041 | 150,624 |
Revolving | 1,020 | 870 |
Revolving to Term | 0 | 0 |
Loans | 493,589 | 492,191 |
Commercial | Owner-occupied CRE | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 42 |
2020/2019 | 1,391 | 623 |
2019/2018 | 1,303 | 1,349 |
2018/2017 | 958 | 7,541 |
2017/2016 | 2,450 | 1,102 |
Prior | 10,812 | 5,842 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 16,914 | 16,499 |
Commercial | Owner-occupied CRE | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 0 | 1,710 |
2017/2016 | 1,682 | 0 |
Prior | 241 | 706 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 1,923 | 2,416 |
Commercial | Owner-occupied CRE | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 2,987 |
2020/2019 | 2,949 | 675 |
2019/2018 | 166 | 176 |
2018/2017 | 0 | 835 |
2017/2016 | 942 | 0 |
Prior | 3,816 | 5,521 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 7,873 | 10,194 |
Commercial | Agricultural | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 6,812 | 14,753 |
2020/2019 | 13,513 | 5,652 |
2019/2018 | 5,132 | 8,307 |
2018/2017 | 7,994 | 10,353 |
2017/2016 | 9,478 | 4,758 |
Prior | 44,484 | 43,875 |
Revolving | 23,251 | 21,931 |
Revolving to Term | 0 | 0 |
Loans | 110,664 | 109,629 |
Commercial | Agricultural | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 6,430 | 13,719 |
2020/2019 | 13,218 | 5,652 |
2019/2018 | 5,132 | 7,580 |
2018/2017 | 7,300 | 9,745 |
2017/2016 | 8,933 | 2,613 |
Prior | 33,511 | 32,702 |
Revolving | 22,697 | 21,513 |
Revolving to Term | 0 | 0 |
Loans | 97,221 | 93,524 |
Commercial | Agricultural | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 382 | 1,034 |
2020/2019 | 295 | 0 |
2019/2018 | 0 | 701 |
2018/2017 | 669 | 169 |
2017/2016 | 221 | 644 |
Prior | 7,457 | 6,131 |
Revolving | 456 | 356 |
Revolving to Term | 0 | 0 |
Loans | 9,480 | 9,035 |
Commercial | Agricultural | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 0 | 329 |
2017/2016 | 0 | 390 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 0 | 719 |
Commercial | Agricultural | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 26 |
2018/2017 | 25 | 110 |
2017/2016 | 324 | 1,111 |
Prior | 3,516 | 5,042 |
Revolving | 98 | 62 |
Revolving to Term | 0 | 0 |
Loans | 3,963 | 6,351 |
Commercial real estate | CRE investment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 108,696 | 82,518 |
2020/2019 | 83,588 | 78,841 |
2019/2018 | 64,451 | 40,928 |
2018/2017 | 29,967 | 71,723 |
2017/2016 | 49,577 | 33,369 |
Prior | 163,978 | 148,087 |
Revolving | 5,331 | 5,255 |
Revolving to Term | 0 | 0 |
Loans | 505,588 | 460,721 |
Commercial real estate | CRE investment | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 106,420 | 82,518 |
2020/2019 | 80,996 | 78,841 |
2019/2018 | 63,133 | 40,881 |
2018/2017 | 26,878 | 69,643 |
2017/2016 | 47,690 | 31,541 |
Prior | 137,969 | 137,048 |
Revolving | 5,331 | 5,255 |
Revolving to Term | 0 | 0 |
Loans | 468,417 | 445,727 |
Commercial real estate | CRE investment | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 2,276 | 0 |
2020/2019 | 2,592 | 0 |
2019/2018 | 1,318 | 47 |
2018/2017 | 3,089 | 1,284 |
2017/2016 | 189 | 1,828 |
Prior | 24,740 | 9,073 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 34,204 | 12,232 |
Commercial real estate | CRE investment | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 0 | 796 |
2017/2016 | 779 | 0 |
Prior | 59 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 838 | 796 |
Commercial real estate | CRE investment | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 0 | 0 |
2017/2016 | 919 | 0 |
Prior | 1,210 | 1,966 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 2,129 | 1,966 |
Commercial real estate | Construction & land development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 13,738 | 67,578 |
2020/2019 | 79,069 | 31,106 |
2019/2018 | 19,516 | 15,869 |
2018/2017 | 12,081 | 2,749 |
2017/2016 | 2,123 | 2,083 |
Prior | 8,800 | 7,768 |
Revolving | 5,261 | 4,130 |
Revolving to Term | 0 | 0 |
Loans | 140,588 | 131,283 |
Commercial real estate | Construction & land development | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 13,738 | 67,578 |
2020/2019 | 79,069 | 30,733 |
2019/2018 | 19,516 | 15,209 |
2018/2017 | 12,081 | 2,204 |
2017/2016 | 1,601 | 2,083 |
Prior | 8,456 | 7,266 |
Revolving | 4,877 | 3,675 |
Revolving to Term | 0 | 0 |
Loans | 139,338 | 128,748 |
Commercial real estate | Construction & land development | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 373 |
2019/2018 | 0 | 660 |
2018/2017 | 0 | 545 |
2017/2016 | 504 | 0 |
Prior | 36 | 23 |
Revolving | 303 | 455 |
Revolving to Term | 0 | 0 |
Loans | 843 | 2,056 |
Commercial real estate | Construction & land development | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 0 | 0 |
2017/2016 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 0 | 0 |
Commercial real estate | Construction & land development | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 0 | 0 |
2017/2016 | 18 | 0 |
Prior | 308 | 479 |
Revolving | 81 | 0 |
Revolving to Term | 0 | 0 |
Loans | 407 | 479 |
Residential | Residential first mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 101,859 | 146,744 |
2020/2019 | 133,749 | 65,375 |
2019/2018 | 54,873 | 42,830 |
2018/2017 | 32,580 | 41,517 |
2017/2016 | 31,885 | 41,647 |
Prior | 116,161 | 105,750 |
Revolving | 242 | 287 |
Revolving to Term | 5 | 5 |
Loans | 471,354 | 444,155 |
Residential | Residential first mortgage | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 101,859 | 146,744 |
2020/2019 | 133,749 | 64,013 |
2019/2018 | 52,563 | 40,388 |
2018/2017 | 31,994 | 41,245 |
2017/2016 | 31,315 | 41,274 |
Prior | 112,478 | 103,094 |
Revolving | 242 | 287 |
Revolving to Term | 5 | 5 |
Loans | 464,205 | 437,050 |
Residential | Residential first mortgage | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 925 |
2019/2018 | 502 | 2,245 |
2018/2017 | 586 | 256 |
2017/2016 | 457 | 364 |
Prior | 2,544 | 1,714 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 4,089 | 5,504 |
Residential | Residential first mortgage | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 0 | 0 |
2017/2016 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 0 | 0 |
Residential | Residential first mortgage | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 437 |
2019/2018 | 1,808 | 197 |
2018/2017 | 0 | 16 |
2017/2016 | 113 | 9 |
Prior | 1,139 | 942 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 3,060 | 1,601 |
Residential | Residential junior mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 1,599 | 4,936 |
2020/2019 | 3,293 | 4,338 |
2019/2018 | 2,553 | 3,663 |
2018/2017 | 2,298 | 1,087 |
2017/2016 | 704 | 869 |
Prior | 3,133 | 3,395 |
Revolving | 89,376 | 91,941 |
Revolving to Term | 1,262 | 1,648 |
Loans | 104,218 | 111,877 |
Residential | Residential junior mortgage | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 1,599 | 4,936 |
2020/2019 | 3,293 | 4,338 |
2019/2018 | 2,387 | 3,663 |
2018/2017 | 2,298 | 1,060 |
2017/2016 | 679 | 869 |
Prior | 3,055 | 3,131 |
Revolving | 89,335 | 91,816 |
Revolving to Term | 1,262 | 1,648 |
Loans | 103,908 | 111,461 |
Residential | Residential junior mortgage | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 0 | 0 |
2017/2016 | 0 | 0 |
Prior | 31 | 32 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 31 | 32 |
Residential | Residential junior mortgage | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 0 | 0 |
2017/2016 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 0 | 0 |
Residential | Residential junior mortgage | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 166 | 0 |
2018/2017 | 0 | 27 |
2017/2016 | 25 | 0 |
Prior | 47 | 232 |
Revolving | 41 | 125 |
Revolving to Term | 0 | 0 |
Loans | 279 | 384 |
Residential | Residential construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 21,871 | 31,687 |
2020/2019 | 21,354 | 9,185 |
2019/2018 | 2,298 | 395 |
2018/2017 | 460 | 176 |
2017/2016 | 449 | 0 |
Prior | 214 | 264 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 46,646 | 41,707 |
Residential | Residential construction | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 21,871 | 31,687 |
2020/2019 | 21,354 | 9,185 |
2019/2018 | 2,298 | 395 |
2018/2017 | 460 | 121 |
2017/2016 | 396 | 0 |
Prior | 214 | 264 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 46,593 | 41,652 |
Residential | Residential construction | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 0 | 55 |
2017/2016 | 53 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 53 | 55 |
Residential | Residential construction | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 0 | 0 |
2017/2016 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 0 | 0 |
Residential | Residential construction | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 0 | 0 |
2017/2016 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | $ 0 | $ 0 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles and Mortgage Servicing Rights - Goodwill and other intangibles (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 163,151 | $ 163,151 | $ 151,198 |
Other intangibles | 10,560 | 12,202 | |
Goodwill and other intangibles, net | 173,711 | 175,353 | |
Core deposit intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangibles | 7,449 | 8,837 | $ 8,837 |
Customer list intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangibles | $ 3,111 | $ 3,365 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles and Mortgage Servicing Rights - Goodwill (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Goodwill: | ||
Goodwill at beginning of year | $ 163,151 | $ 151,198 |
Acquisition | 0 | 11,953 |
Goodwill at end of period | $ 163,151 | $ 163,151 |
Goodwill and Other Intangible_5
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, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Net book value | $ 10,560 | $ 10,560 | $ 12,202 | |||
Amortization during the period | 790 | $ 880 | 1,642 | $ 1,873 | ||
Core deposit intangibles: | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Gross carrying amount | 31,715 | 31,715 | $ 31,715 | |||
Accumulated amortization | (24,266) | (24,266) | (22,878) | |||
Net book value | 7,449 | 7,449 | 8,837 | $ 8,837 | ||
Additions during the period | 0 | 1,000 | ||||
Amortization during the period | 1,388 | 3,060 | ||||
Customer list intangibles: | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Gross carrying amount | 5,523 | 5,523 | 5,523 | |||
Accumulated amortization | (2,412) | (2,412) | (2,158) | |||
Net book value | $ 3,111 | 3,111 | 3,365 | |||
Amortization during the period | $ 254 | $ 507 |
Goodwill and Other Intangible_6
Goodwill and Other Intangibles and Mortgage Servicing Rights - Mortgage servicing rights (Details) - Mortgage Servicing Rights - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Mortgage servicing rights ("MSR") asset: | ||
MSR asset at beginning of year | $ 10,230 | $ 5,919 |
Capitalized MSR | 2,294 | 5,256 |
MSR asset acquired | 0 | 529 |
Amortization during the period | (1,029) | (1,474) |
MSR asset at end of period | 11,495 | 10,230 |
Valuation Allowance: | ||
Valuation allowance at beginning of year | (1,000) | 0 |
Additions | (500) | (1,000) |
Valuation allowance at end of period | (1,500) | (1,000) |
MSR asset, net | 9,995 | 9,230 |
Fair value of MSR asset at end of period | 12,214 | 9,276 |
Residential mortgage loans serviced for others | $ 1,335,522 | $ 1,250,206 |
Net book value of MSR asset to loans serviced for others | 0.75% | 0.74% |
Goodwill and Other Intangible_7
Goodwill and Other Intangibles and Mortgage Servicing Rights - Estimated future amortization expense (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | |||
Net book value | $ 10,560 | $ 12,202 | |
Core deposit intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
2021 (remaining six months) | 1,255 | ||
2022 | 2,150 | ||
2023 | 1,633 | ||
2024 | 1,130 | ||
2025 | 670 | ||
2026 | 317 | ||
Thereafter | 294 | ||
Net book value | 7,449 | 8,837 | $ 8,837 |
Customer list intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
2021 (remaining six months) | 253 | ||
2022 | 507 | ||
2023 | 483 | ||
2024 | 449 | ||
2025 | 449 | ||
2026 | 249 | ||
Thereafter | 721 | ||
Net book value | 3,111 | $ 3,365 | |
MSR asset | |||
Finite-Lived Intangible Assets [Line Items] | |||
2021 (remaining six months) | 901 | ||
2022 | 1,942 | ||
2023 | 1,855 | ||
2024 | 1,796 | ||
2025 | 1,134 | ||
2026 | 1,044 | ||
Thereafter | 2,823 | ||
Net book value | $ 11,495 |
Short and Long-Term Borrowing_2
Short and Long-Term Borrowings - Narrative (Details) - USD ($) | 60 Months Ended | ||||
Jul. 15, 2031 | Jul. 15, 2026 | Jul. 07, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument | |||||
Short-term borrowings | $ 0 | $ 0 | |||
Trust preferred securities qualify as Tier 1 capital | $ 24,100,000 | $ 23,900,000 | |||
Subsequent Event | Forecast | |||||
Debt Instrument | |||||
Fixed interest rate | 3.125% | ||||
FHLB advances | |||||
Debt Instrument | |||||
FHLB weighted average interest rate | 0.74% | 0.73% | |||
Subordinated notes | Subsequent Event | |||||
Debt Instrument | |||||
Face amount issued | $ 100,000,000 | ||||
Subordinated notes | Subsequent Event | SOFR | Forecast | |||||
Debt Instrument | |||||
Floating interest rate basis spread | 0.2375% |
Short and Long-Term Borrowing_3
Short and Long-Term Borrowings - Long-term Borrowings (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument | ||
Long-term borrowings | $ 45,108 | $ 53,869 |
FHLB advances | ||
Debt Instrument | ||
Long-term borrowings | 20,000 | 29,000 |
Junior subordinated debentures | ||
Debt Instrument | ||
Long-term borrowings | $ 25,108 | $ 24,869 |
Short and Long-Term Borrowing_4
Short and Long-Term Borrowings - Junior Subordinated Debentures (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Junior Subordinated Debentures | ||
Carrying Value | $ 45,108,000 | $ 53,869,000 |
Junior subordinated debentures | ||
Junior Subordinated Debentures | ||
Par | 32,063,000 | |
Unamortized Discount | (6,955,000) | |
Carrying Value | 25,108,000 | 24,869,000 |
Junior subordinated debentures | 2005 Mid-Wisconsin Financial Services, Inc. | ||
Junior Subordinated Debentures | ||
Par | 10,310,000 | |
Unamortized Discount | (2,873,000) | |
Carrying Value | $ 7,437,000 | $ 7,338,000 |
Effective percentage | 1.55% | 1.65% |
Junior subordinated debentures | 2006 Baylake Corp. | ||
Junior Subordinated Debentures | ||
Par | $ 16,598,000 | |
Unamortized Discount | (3,529,000) | |
Carrying Value | $ 13,069,000 | $ 12,951,000 |
Effective percentage | 1.50% | 1.59% |
Junior subordinated debentures | 2004 First Menasha Bancshares, Inc. | ||
Junior Subordinated Debentures | ||
Par | $ 5,155,000 | |
Unamortized Discount | (553,000) | |
Carrying Value | $ 4,602,000 | $ 4,580,000 |
Effective percentage | 2.91% | 3.02% |
Junior subordinated debentures | London Interbank Offered Rate (LIBOR) | 2005 Mid-Wisconsin Financial Services, Inc. | ||
Junior Subordinated Debentures | ||
Floating interest rate basis spread | 1.43% | |
Junior subordinated debentures | London Interbank Offered Rate (LIBOR) | 2006 Baylake Corp. | ||
Junior Subordinated Debentures | ||
Floating interest rate basis spread | 1.35% | |
Junior subordinated debentures | London Interbank Offered Rate (LIBOR) | 2004 First Menasha Bancshares, Inc. | ||
Junior Subordinated Debentures | ||
Floating interest rate basis spread | 2.79% |
Fair Value Measurements - Measu
Fair Value Measurements - Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | $ 562,028 | $ 539,337 |
U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 68,007 | 63,451 |
State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 231,204 | 231,868 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 180,537 | 162,495 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 82,280 | 81,523 |
Recurring basis fair value measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 562,028 | 539,337 |
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 | 68,007 | 63,451 |
Recurring basis fair value measurements | State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 231,204 | 231,868 |
Recurring basis fair value measurements | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 180,537 | 162,495 |
Recurring basis fair value measurements | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 82,280 | 81,523 |
Recurring basis fair value measurements | Other investments (equity securities) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments (equity securities) | 9,116 | 3,567 |
Recurring basis fair value measurements | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Recurring basis fair value measurements | 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 | 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 | 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 | 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 | Level 1 | Other investments (equity securities) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments (equity securities) | 9,116 | 3,567 |
Recurring basis fair value measurements | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 558,898 | 536,207 |
Recurring basis fair value measurements | Level 2 | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 68,007 | 63,451 |
Recurring basis fair value measurements | Level 2 | State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 231,204 | 231,868 |
Recurring basis fair value measurements | Level 2 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 180,537 | 162,495 |
Recurring basis fair value measurements | Level 2 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 79,150 | 78,393 |
Recurring basis fair value measurements | Level 2 | Other investments (equity securities) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments (equity securities) | 0 | 0 |
Recurring basis fair value measurements | 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 | 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 | 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 | 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 | 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 | Level 3 | Other investments (equity securities) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments (equity securities) | $ 0 | $ 0 |
Fair Value Measurements - 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, 2021 | Dec. 31, 2020 |
Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 8,958 | $ 7,633 |
Other real estate owned (“OREO”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 2,895 | 3,608 |
MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 9,995 | 9,230 |
Level 1 | Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
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 |
Level 1 | MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Level 2 | Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
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 |
Level 2 | MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Level 3 | Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 8,958 | 7,633 |
Level 3 | Other real estate owned (“OREO”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 2,895 | 3,608 |
Level 3 | MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 9,995 | $ 9,230 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of carrying amounts and estimated fair values of financial instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financial assets: | ||
Securities AFS | $ 562,028 | $ 539,337 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 792,406 | 802,859 |
Certificates of deposit in other banks | 23,387 | 29,521 |
Securities AFS | 562,028 | 539,337 |
Other investments, including equity securities | 33,440 | 27,619 |
Loans held for sale | 11,235 | 21,450 |
Loans, net | 2,787,770 | 2,756,928 |
MSR asset | 9,995 | 9,230 |
Financial liabilities: | ||
Deposits | 3,939,022 | 3,910,399 |
Long-term borrowings | 45,108 | 53,869 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 792,406 | 802,859 |
Certificates of deposit in other banks | 24,948 | 31,053 |
Securities AFS | 562,028 | 539,337 |
Other investments, including equity securities | 33,440 | 27,619 |
Loans held for sale | 11,537 | 22,329 |
Loans, net | 2,843,744 | 2,834,452 |
MSR asset | 12,214 | 9,276 |
Financial liabilities: | ||
Deposits | 3,945,358 | 3,917,121 |
Long-term borrowings | 45,350 | 53,859 |
Estimated Fair Value | Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 792,406 | 802,859 |
Certificates of deposit in other banks | 0 | 0 |
Securities AFS | 0 | 0 |
Other investments, including equity securities | 9,116 | 3,567 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
MSR asset | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 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 | 24,948 | 31,053 |
Securities AFS | 558,898 | 536,207 |
Other investments, including equity securities | 20,115 | 20,155 |
Loans held for sale | 11,537 | 22,329 |
Loans, net | 0 | 0 |
MSR asset | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Long-term borrowings | 20,242 | 29,488 |
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 | 4,209 | 3,897 |
Loans held for sale | 0 | 0 |
Loans, net | 2,843,744 | 2,834,452 |
MSR asset | 12,214 | 9,276 |
Financial liabilities: | ||
Deposits | 3,945,358 | 3,917,121 |
Long-term borrowings | $ 25,108 | $ 24,371 |