Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 31, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
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 $0.01 per share | |
Trading Symbol | NIC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 14,676,910 | |
Entity Central Index Key | 0001174850 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
Assets | |||
Cash and due from banks | $ 118,537 | $ 209,349 | |
Interest-earning deposits | 319,745 | 385,943 | |
Cash and cash equivalents | 438,282 | [1] | 595,292 |
Certificates of deposit in other banks | 13,510 | 21,920 | |
Securities available for sale (“AFS”), at fair value | 949,597 | 921,661 | |
Securities held to maturity (“HTM”), at amortized cost | 686,424 | 651,803 | |
Other investments | 79,279 | 44,008 | |
Loans held for sale | 3,709 | 6,447 | |
Other assets held for sale | 0 | 199,833 | |
Loans | 5,984,437 | 4,621,836 | |
Allowance for credit losses - loans (“ACL-Loans”) | (60,348) | (49,672) | |
Loans, net | 5,924,089 | 4,572,164 | |
Premises and equipment, net | 106,648 | 94,566 | |
Bank owned life insurance (“BOLI”) | 165,166 | 134,476 | |
Goodwill and other intangibles, net | 407,117 | 339,492 | |
Accrued interest receivable and other assets | 122,095 | 113,375 | |
Total assets | 8,895,916 | 7,695,037 | |
Liabilities: | |||
Noninterest-bearing demand deposits | 2,477,507 | 1,975,705 | |
Interest-bearing deposits | 4,918,395 | 4,490,211 | |
Total deposits | 7,395,902 | 6,465,916 | |
Short-term borrowings | 280,000 | 0 | |
Long-term borrowings | 225,236 | 216,915 | |
Other liabilities held for sale | 0 | 51,586 | |
Accrued interest payable and other liabilities | 56,315 | 68,729 | |
Total liabilities | 7,957,453 | 6,803,146 | |
Stockholders’ Equity: | |||
Common stock | 147 | 140 | |
Additional paid-in capital | 620,392 | 575,045 | |
Retained earnings | 380,263 | 313,604 | |
Accumulated other comprehensive income (loss) | (62,339) | 3,102 | |
Total stockholders’ equity | 938,463 | 891,891 | |
Total liabilities and stockholders’ equity | $ 8,895,916 | $ 7,695,037 | |
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) | 14,673,197 | 13,994,079 | |
Common shares issued (in shares) | 14,746,123 | 14,019,880 | |
[1]There was no restricted cash in cash and cash equivalents at September 30, 2022, while cash and cash equivalents at September 30, 2021, included restricted cash of $1.9 million pledged as collateral on interest rate swaps. No reserve balance was required with the Federal Reserve Bank at either September 30, 2022 or September 30, 2021. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Interest income: | ||||
Loans, including loan fees | $ 63,060 | $ 35,294 | $ 167,313 | $ 104,267 |
Investment securities: | ||||
Taxable | 5,350 | 2,061 | 15,612 | 5,935 |
Tax-exempt | 1,181 | 517 | 2,503 | 1,582 |
Other interest income | 1,127 | 869 | 2,734 | 2,140 |
Total interest income | 70,718 | 38,741 | 188,162 | 113,924 |
Interest expense: | ||||
Deposits | 4,638 | 2,444 | 9,240 | 7,799 |
Short-term borrowings | 594 | 0 | 622 | 0 |
Long-term borrowings | 2,496 | 1,113 | 6,431 | 1,729 |
Total interest expense | 7,728 | 3,557 | 16,293 | 9,528 |
Net interest income | 62,990 | 35,184 | 171,869 | 104,396 |
Provision for credit losses | 8,600 | 6,000 | 9,650 | 6,500 |
Net interest income after provision for credit losses | 54,390 | 29,184 | 162,219 | 97,896 |
Noninterest income: | ||||
Mortgage income, net | 1,728 | 4,808 | 7,186 | 17,637 |
BOLI income | 966 | 572 | 2,667 | 1,658 |
Asset gains (losses), net | (46) | (1,187) | 2,870 | 3,716 |
Other income | 742 | 993 | 1,506 | 3,594 |
Total noninterest income | 13,000 | 13,996 | 43,074 | 51,300 |
Noninterest expense: | ||||
Personnel | 24,136 | 16,927 | 65,008 | 49,127 |
Occupancy, equipment and office | 7,641 | 5,749 | 21,476 | 13,939 |
Business development and marketing | 2,281 | 1,654 | 6,169 | 3,853 |
Data processing | 3,664 | 2,939 | 10,647 | 8,408 |
Intangibles amortization | 1,628 | 758 | 4,399 | 2,400 |
FDIC assessments | 480 | 480 | 1,440 | 1,555 |
Merger-related expense | 519 | 2,793 | 1,172 | 3,449 |
Other expense | 2,218 | 1,761 | 6,344 | 7,158 |
Total noninterest expense | 42,567 | 33,061 | 116,655 | 89,889 |
Income before income tax expense | 24,823 | 10,119 | 88,638 | 59,307 |
Income tax expense | 6,313 | 2,295 | 21,979 | 14,960 |
Net income | $ 18,510 | $ 7,824 | $ 66,659 | $ 44,347 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 1.33 | $ 0.75 | $ 4.88 | $ 4.39 |
Diluted (in dollars per share) | $ 1.29 | $ 0.73 | $ 4.72 | $ 4.22 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 13,890,066 | 10,391,896 | 13,647,973 | 10,098,492 |
Diluted (in shares) | 14,310,275 | 10,775,591 | 14,126,772 | 10,503,163 |
Trust services fee income | ||||
Noninterest income: | ||||
Fees and commissions | $ 1,969 | $ 2,043 | $ 5,984 | $ 5,724 |
Brokerage fee income | ||||
Noninterest income: | ||||
Fees and commissions | 3,040 | 3,154 | 9,716 | 8,938 |
Service charges on deposit accounts | ||||
Noninterest income: | ||||
Fees and commissions | 1,589 | 1,314 | 4,602 | 3,541 |
Card interchange income | ||||
Noninterest income: | ||||
Fees and commissions | $ 3,012 | $ 2,299 | $ 8,543 | $ 6,492 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 18,510 | $ 7,824 | $ 66,659 | $ 44,347 |
Unrealized gains (losses) on securities AFS: | ||||
Net unrealized holding gains (losses) | (26,162) | (3,074) | (89,630) | (8,581) |
Net realized (gains) losses included in income | 0 | 13 | (15) | 13 |
Income tax (expense) benefit | 7,064 | 827 | 24,204 | 2,313 |
Other comprehensive income (loss) | (19,098) | (2,234) | (65,441) | (6,255) |
Comprehensive income (loss) | $ (588) | $ 5,590 | $ 1,218 | $ 38,092 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Dec. 31, 2020 | $ 539,189 | $ 100 | $ 273,390 | $ 252,952 | $ 12,747 |
Comprehensive income: | |||||
Net income | 44,347 | 44,347 | |||
Other comprehensive income (loss) | (6,255) | (6,255) | |||
Issuance of common stock in acquisition | 179,434 | 23 | 179,411 | ||
Stock-based compensation expense | 5,222 | 5,222 | |||
Exercise of stock options, net | 1,386 | 1 | 1,385 | ||
Issuance of common stock | 395 | 395 | |||
Purchase and retirement of common stock | (34,440) | (4) | (34,436) | ||
Ending Balance at Sep. 30, 2021 | 729,278 | 120 | 425,367 | 297,299 | 6,492 |
Beginning Balance at Jun. 30, 2021 | 559,395 | 98 | 261,096 | 289,475 | 8,726 |
Comprehensive income: | |||||
Net income | 7,824 | 7,824 | |||
Other comprehensive income (loss) | (2,234) | (2,234) | |||
Issuance of common stock in acquisition | 179,434 | 23 | 179,411 | ||
Stock-based compensation expense | 1,826 | 1,826 | |||
Exercise of stock options, net | 161 | 1 | 160 | ||
Issuance of common stock | 163 | 163 | |||
Purchase and retirement of common stock | (17,291) | (2) | (17,289) | ||
Ending Balance at Sep. 30, 2021 | 729,278 | 120 | 425,367 | 297,299 | 6,492 |
Beginning Balance at Dec. 31, 2021 | 891,891 | 140 | 575,045 | 313,604 | 3,102 |
Comprehensive income: | |||||
Net income | 66,659 | 66,659 | |||
Other comprehensive income (loss) | (65,441) | (65,441) | |||
Issuance of common stock in acquisition | 98,149 | 13 | 98,136 | ||
Stock-based compensation expense | 5,282 | 5,282 | |||
Exercise of stock options, net | 2,078 | 1 | 2,077 | ||
Issuance of common stock | 557 | 557 | |||
Purchase and retirement of common stock | (60,712) | (7) | (60,705) | ||
Ending Balance at Sep. 30, 2022 | 938,463 | 147 | 620,392 | 380,263 | (62,339) |
Beginning Balance at Jun. 30, 2022 | 839,387 | 134 | 520,741 | 361,753 | (43,241) |
Comprehensive income: | |||||
Net income | 18,510 | 18,510 | |||
Other comprehensive income (loss) | (19,098) | (19,098) | |||
Issuance of common stock in acquisition | 98,149 | 13 | 98,136 | ||
Stock-based compensation expense | 1,329 | 1,329 | |||
Exercise of stock options, net | 1 | 1 | |||
Issuance of common stock | 185 | 185 | |||
Ending Balance at Sep. 30, 2022 | $ 938,463 | $ 147 | $ 620,392 | $ 380,263 | $ (62,339) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | ||
Cash Flows From Operating Activities: | |||
Net income | $ 66,659 | $ 44,347 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization, and accretion | 16,994 | 9,301 | |
Provision for credit losses | 9,650 | 6,500 | |
Increase in cash surrender value of life insurance | (2,551) | (1,658) | |
Stock-based compensation expense | 5,282 | 5,222 | |
Asset (gains) losses, net | (2,870) | (3,716) | |
Gain on sale of loans held for sale, net | (4,520) | (16,289) | |
Net change due to: | |||
Proceeds from sale of loans held for sale | 188,093 | 503,405 | |
Origination of loans held for sale | (182,962) | (485,641) | |
Accrued interest receivable and other assets | 7,719 | (6,721) | |
Accrued interest payable and other liabilities | (14,145) | (2,488) | |
Net cash provided by (used in) operating activities | 87,349 | 52,262 | |
Cash Flows From Investing Activities: | |||
Net increase in loans | (537,001) | 10,406 | |
Net (increase) decrease in certificates of deposit in other banks | 8,419 | 8,561 | |
Purchases of securities AFS | (8,623) | (214,343) | |
Purchases of securities HTM | (56,479) | (20,996) | |
Proceeds from sales of securities AFS | 23,984 | 15,975 | |
Proceeds from calls and maturities of securities AFS | 70,781 | 81,681 | |
Proceeds from calls and maturities of securities HTM | 21,378 | 0 | |
Purchases of other investments | (30,327) | (4,787) | |
Proceeds from sales of other investments | 4,014 | 1,534 | |
Proceeds from redemption of BOLI | 578 | 0 | |
Net (increase) decrease in premises and equipment | (7,965) | (6,894) | |
Net (increase) decrease in other real estate and other assets | 9,785 | 1,046 | |
Net cash (paid) received in branch sale | 147,833 | 0 | |
Cash paid in business combination | (28,221) | ||
Cash received in business combination | 394,868 | ||
Net cash provided by (used in) investing activities | (381,844) | 267,051 | |
Cash Flows From Financing Activities: | |||
Net increase (decrease) in deposits | 68,428 | 199,698 | |
Net increase (decrease) in short-term borrowings | 147,134 | 0 | |
Proceeds from long-term borrowings | 0 | 103,953 | |
Repayments of long-term borrowings | (20,000) | (42,559) | |
Purchase and retirement of common stock | (60,712) | (34,440) | |
Proceeds from issuance of common stock | 557 | 395 | |
Proceeds from exercise of stock options | 2,078 | 1,386 | |
Net cash provided by (used in) financing activities | 137,485 | 228,433 | |
Net increase (decrease) in cash and cash equivalents | (157,010) | 547,746 | |
Cash and cash equivalents: | |||
Beginning | 595,292 | 802,859 | |
Ending | [1] | 438,282 | 1,350,605 |
Supplemental Disclosures of Cash Flow Information: | |||
Cash paid for interest | 19,785 | 9,320 | |
Cash paid for taxes | 25,660 | 24,116 | |
Transfer of loans and bank premises to other real estate owned | 432 | 302 | |
Capitalized mortgage servicing rights | 2,127 | 3,191 | |
Acquisitions: | |||
Fair value of assets acquired | 1,118,000 | 1,556,000 | |
Fair value of liabilities assumed | 1,034,000 | 1,409,000 | |
Net assets acquired | $ 84,000 | $ 147,000 | |
[1]There was no restricted cash in cash and cash equivalents at September 30, 2022, while cash and cash equivalents at September 30, 2021, included restricted cash of $1.9 million pledged as collateral on interest rate swaps. No reserve balance was required with the Federal Reserve Bank at either September 30, 2022 or September 30, 2021. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Statement of Cash Flows [Abstract] | ||
Restricted cash and cash equivalents | $ 0 | $ 1.9 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
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 (loss), 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, 2021. 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, 2021. Future Accounting Pronouncements In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings (“TDRs”) and Vintage Disclosures . This ASU eliminates the accounting guidance for TDRs by creditors, while enhancing the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The ASU also requires public business entities to expand the vintage disclosures to include gross charge-offs by year of origination. The updated guidance is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. Adoption of this amendment is not expected to have a material impact on the Company’s consolidated financial statements; though, it will result in new disclosures of gross charge-offs by year of origination and on the types of loan modifications to borrowers experiencing financial difficulties. Current TDR disclosures will be also removed. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This ASU provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. It provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The updated guidance is effective for all entities as of March 12, 2020 through December 31, 2022. The Company continues to work through the cessation of LIBOR, including the modification of its loans and other financial instruments with attributes that are either directly or indirectly influenced by LIBOR. The Company expects to utilize the reference rate reform transition guidance, as applicable, and does not expect such adoption to have a material impact on its consolidated financial statements or financial disclosures. The Company will continue to assess the impact as the reference rate transition approaches June 30, 2023. Reclassifications Certain amounts in the 2021 consolidated financial statements have been reclassified to conform to the 2022 presentation. These reclassifications were not material and did not impact previously reported net income or comprehensive income. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Completed Acquisitions: Charter Bankshares, Inc. (“Charter”) : On August 26, 2022, Nicolet completed its merger with Charter, pursuant to the Agreement and Plan of Merger dated March 29, 2022 (the “Charter Merger Agreement”), at which time Charter merged with and into Nicolet, and Charter Bank, the wholly owned bank subsidiary of Charter, was merged with and into Nicolet National Bank (the “Bank”), the wholly owned bank subsidiary of Nicolet. Pursuant to the Charter Merger Agreement, each share of Charter common stock issued and outstanding immediately prior to the effective time of the merger was converted into the right to receive 15.458 shares of Nicolet common stock and $475 in cash. As a result, Nicolet issued approximately 1.26 million shares of Nicolet common stock for stock consideration of $98 million and cash consideration of $39 million, for a total purchase price of $137 million. With the Charter merger, Nicolet expanded to Western Wisconsin and Minnesota. A summary of the assets acquired and liabilities assumed in the Charter transaction, as of the acquisition date, including the purchase price allocation was as follows. (In millions, except share data) Acquired from Charter Fair Value Adjustments Estimated Fair Value Assets Acquired: Cash and cash equivalents $ 10 $ — $ 10 Investment securities 218 — 218 Loans 848 (21) 827 ACL-Loans (9) 7 (2) Premises and equipment 9 1 10 BOLI 29 — 29 Core deposit intangible — 19 19 Other assets 5 2 7 Total assets $ 1,110 $ 8 $ 1,118 Liabilities Assumed: Deposits $ 869 $ 1 $ 870 Borrowings 161 — 161 Other liabilities 3 — 3 Total liabilities $ 1,033 $ 1 $ 1,034 Net assets acquired $ 84 Purchase Price: Nicolet common stock issued (in shares) 1,262,360 Value of Nicolet common stock consideration $ 98 Cash consideration paid 39 Total purchase price $ 137 Preliminary goodwill $ 53 The Company purchased loans through the acquisition of Charter for which there was, at the date of acquisition, more than insignificant deterioration of credit quality since origination (purchased credit deteriorated loans or “PCD” loans). The carrying amount of these loans at acquisition was as follows. (In thousands) August 26, 2022 Purchase price of PCD loans at acquisition $ 24,031 Allowance for credit losses on PCD loans at acquisition 1,709 Par value of PCD acquired loans at acquisition $ 25,740 The Company accounted for the Charter acquisition under the acquisition method of accounting, and thus, the financial position and results of operations of Charter prior to the consummation date were not included in the accompanying consolidated financial statements. The accounting required assets purchased and liabilities assumed to be recorded at their respective estimated fair values at the date of acquisition. The estimated fair value was determined with the assistance of third party valuations, appraisals, and third party advisors. Goodwill arising as a result of the Charter acquisition is not deductible for tax purposes. County Bancorp, Inc. (“County”) : On December 3, 2021, Nicolet completed its merger with County, pursuant to the Agreement and Plan of Merger dated June 22, 2021 (the “County Merger Agreement”), at which time County merged with and into Nicolet, and Investors Community Bank, the wholly owned bank subsidiary of County, was merged with and into the Bank. Pursuant to the County Merger Agreement, each share of County common stock issued and outstanding immediately prior to the effective time of the merger was converted into the right to receive, at the election of the shareholder, either cash of $37.18 or 0.48 shares of Nicolet common stock, subject to proration procedures such that 1,237,000 shares of County common stock were exchanged for cash, and the remaining shares were exchanged for Nicolet common stock. As a result, Nicolet issued approximately 2.4 million shares of Nicolet common stock for stock consideration of $176 million and cash consideration of $48 million, or a total purchases price of $224 million. With the County merger, Nicolet became the premier agriculture lender throughout Wisconsin. A summary of the assets acquired and liabilities assumed in the County transaction, as of the acquisition date, including the purchase price allocation was as follows. (In millions, except share data) Acquired from County Fair Value Adjustments Estimated Fair Value Assets Acquired: Cash and cash equivalents $ 20 $ — $ 20 Investment securities 301 (1) 300 Loans 1,015 (1) 1,014 ACL-Loans (11) 8 (3) Premises and equipment 21 (4) 17 BOLI 33 — 33 Core deposit intangible — 7 7 Loan servicing rights 20 — 20 Other assets 6 (2) 4 Total assets $ 1,405 $ 7 $ 1,412 Liabilities Assumed: Deposits $ 1,027 $ 3 $ 1,030 Borrowings 218 1 219 Other liabilities 8 — 8 Total liabilities $ 1,253 $ 4 $ 1,257 Net assets acquired $ 155 Purchase Price: Nicolet common stock issued (in shares) 2,366,243 Value of Nicolet common stock consideration $ 176 Cash consideration paid 48 Total purchase price $ 224 Write-off prior investment in County (1) Goodwill $ 70 The Company purchased loans through the acquisition of County for which there was, at the date of acquisition, more than insignificant deterioration of credit quality since origination (PCD loans). The carrying amount of these loans at acquisition was as follows. (In thousands) December 3, 2021 Purchase price of PCD loans at acquisition $ 64,948 Allowance for credit losses on PCD loans at acquisition 3,262 Par value of PCD acquired loans at acquisition $ 68,210 The Company accounted for the County acquisition under the acquisition method of accounting, and thus, the financial position and results of operations of County prior to the consummation date were not included in the accompanying consolidated financial statements. The accounting required assets purchased and liabilities assumed to be recorded at their respective estimated fair values at the date of acquisition. The estimated fair value was determined with the assistance of third party valuations, appraisals, and third party advisors. Goodwill arising as a result of the County acquisition is not deductible for tax purposes. Mackinac Financial Corporation (“Mackinac”) : On September 3, 2021, Nicolet completed its merger with Mackinac, pursuant to the terms of the Agreement and Plan of Merger dated April 12, 2021 (the “Mackinac Merger Agreement”), at which time Mackinac merged with and into Nicolet, and mBank, the wholly owned bank subsidiary of Mackinac, was merged with and into the Bank. Pursuant to the Mackinac Merger Agreement, Mackinac shareholders received fixed consideration of 0.22 shares of Nicolet common stock and $4.64 in cash for each share of Mackinac common stock owned, resulting in the issuance of approximately 2.3 million shares of Nicolet common stock for stock consideration of $180 million and cash consideration of $49 million, or a total purchase price of $229 million. The Mackinac merger expanded Nicolet prominently into Northern Michigan and the Upper Peninsula of Michigan, and added to Nicolet’s presence in upper northeastern Wisconsin. A summary of the assets acquired and liabilities assumed in the Mackinac transaction, as of the acquisition date, including the purchase price allocation was as follows. (In millions, except share data) Acquired from Mackinac Fair Value Adjustments Estimated Fair Value Assets Acquired: Cash and cash equivalents $ 448 $ — $ 448 Investment securities 104 — 104 Loans 930 10 940 ACL-Loans (6) 4 (2) Premises and equipment 24 (3) 21 BOLI 16 — 16 Goodwill 20 (20) — Other intangibles 4 3 7 Other assets 25 (3) 22 Total assets $ 1,565 $ (9) $ 1,556 Liabilities Assumed: Deposits $ 1,365 $ 1 $ 1,366 Borrowings 28 1 29 Other liabilities 13 1 14 Total liabilities $ 1,406 $ 3 $ 1,409 Net assets acquired $ 147 Purchase Price: Nicolet common stock issued (in shares) 2,337,230 Value of Nicolet common stock consideration $ 180 Cash consideration paid 49 Total purchase price $ 229 Write-off prior investment in Mackinac (2) Goodwill $ 84 The Company purchased loans through the acquisition of Mackinac for which there was, at the date of acquisition, more than insignificant deterioration of credit quality since origination (PCD loans). The carrying amount of these loans at acquisition was as follows. (In thousands) September 3, 2021 Purchase price of PCD loans at acquisition $ 10,605 Allowance for credit losses on PCD loans at acquisition 1,896 Par value of PCD acquired loans at acquisition $ 12,501 The Company accounted for the Mackinac acquisition under the acquisition method of accounting, and thus, the financial position and results of operations of Mackinac prior to the consummation date were not included in the accompanying consolidated financial statements. The accounting required assets purchased and liabilities assumed to be recorded at their respective estimated fair values at the date of acquisition. The estimated fair value was determined with the assistance of third party valuations, appraisals, and third party advisors. Goodwill arising as a result of the Mackinac acquisition is not deductible for tax purposes. Summary Unaudited Pro Forma Information : The following unaudited pro forma information is presented for illustrative purposes only, and gives effect to the acquisitions of County and Mackinac as if the acquisitions had occurred on January 1, 2021, the beginning of the earliest period presented. The pro forma information should not be relied upon as being indicative of the historical results of operations the companies would have had if the acquisitions had occurred before such periods or the future results of operations that the companies will experience as a result of the mergers. The pro forma information, although helpful in illustrating the financial characteristics of the combined company under one set of assumptions, does not reflect the benefits of expected cost savings, opportunities to earn additional revenue, the impact of restructuring and merger-related expenses, or other factors that may result as a consequence of the mergers and, accordingly, does not attempt to predict or suggest future results. Three Months Ended Nine Months Ended (In thousands, except per share data) September 30, 2021 September 30, 2021 Total revenue, net of interest expense $ 84,802 $ 241,287 Net income $ 16,470 $ 62,243 Diluted earnings per common share $ 1.06 $ 4.09 |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Basic earnings per common share are calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common share are calculated by dividing net income by the weighted average number of shares adjusted for the dilutive effect of common stock awards (outstanding stock options and unvested restricted stock), if any. Presented below are the calculations for basic and diluted earnings per common share. Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except per share data) 2022 2021 2022 2021 Net income $ 18,510 $ 7,824 $ 66,659 $ 44,347 Weighted average common shares outstanding 13,890 10,392 13,648 10,098 Effect of dilutive common stock awards 420 384 479 405 Diluted weighted average common shares outstanding 14,310 10,776 14,127 10,503 Basic earnings per common share* $ 1.33 $ 0.75 $ 4.88 $ 4.39 Diluted earnings per common share* $ 1.29 $ 0.73 $ 4.72 $ 4.22 *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 | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022, approximately 0.7 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 nine months ended September 30, 2022 and 2021 were as follows. Nine Months Ended September 30, 2022 2021 Dividend yield — % — % Expected volatility 30 % 30 % Risk-free interest rate 3.03 % 1.16 % Expected average life 7 years 7 years Weighted average per share fair value of options $ 30.99 $ 26.55 A summary of the Company’s stock option activity is summarized below. Stock Options Option Shares Weighted Weighted Average Aggregate Outstanding - December 31, 2021 1,833,246 $ 57.69 Granted 132,929 81.04 Exercise of stock options * (65,661) 41.26 Forfeited (8,500) 77.62 Outstanding - September 30, 2022 1,892,014 $ 59.81 6.2 $ 24,920 Exercisable - September 30, 2022 1,207,585 $ 50.84 4.9 $ 24,324 * The terms of the stock option agreements permit having a number of shares of stock withheld, the fair market value of which as of the date of exercise is sufficient to satisfy the exercise price and/or tax withholding requirements. For the nine months ended September 30, 2022, 6,073 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 nine months ended September 30, 2022 and 2021 was approximately $3.3 million and $1.7 million, respectively. A summary of the Company’s restricted stock activity is summarized below. Restricted Stock Weighted Average Grant Restricted Shares Outstanding - December 31, 2021 $ 71.42 25,801 Granted 75.99 60,852 Vested * 71.51 (13,127) Forfeited 56.01 (600) Outstanding - September 30, 2022 $ 75.34 72,926 * 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, 465 shares were surrendered during the nine months ended September 30, 2022. The Company recognized approximately $4.6 million and $4.5 million of stock-based compensation expense (included in personnel on the consolidated statements of income) for the nine months ended September 30, 2022 and 2021, respectively, associated with its common stock awards granted to officers and employees. In addition, during the nine months ended September 30, 2022, the Company recognized approximately $0.7 million of director expense (included in other expense on the consolidated statements of income) for restricted stock grants totaling 8,852 shares with immediate vesting to directors, while during the first nine months of 2021, the Company recognized approximately $0.7 million of director expense for restricted stock grants totaling 9,595 shares with immediate vesting to directors, in each case representing the annual stock retainer fee paid to external board members for that year. As of September 30, 2022, there was approximately $19.9 million of unrecognized compensation cost related to equity award grants, which is expected to be recognized over the remaining vesting period of approximately four years. The Company recognized a tax benefit of approximately $0.4 million and $0.3 million for the nine months ended September 30, 2022 and 2021, respectively, for the tax impact of stock option exercises and vesting of restricted stock. |
Securities and Other Investment
Securities and Other Investments | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities and Other Investments | Securities and Other Investments Securities Securities are classified as AFS or HTM on the consolidated balance sheets at the time of purchase. AFS securities include those securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity, and are carried at fair value on the consolidated balance sheets. HTM securities include those securities which the Company has both the positive intent and ability to hold to maturity, and are carried at amortized cost on the consolidated balance sheets. Premiums and discounts on investment securities are amortized or accreted into interest income over the estimated life of the related securities using the effective interest method. The amortized cost and fair value of securities AFS and HTM are summarized as follows. September 30, 2022 (in thousands) Amortized Cost Gross Gross Estimated Fair Value Fair Value as % of Total Securities AFS: U.S. government agency securities $ 194,295 $ — $ 9,532 $ 184,763 19 % State, county and municipals 454,740 32 42,908 411,864 43 % Mortgage-backed securities 239,430 1 25,996 213,435 23 % Corporate debt securities 146,528 — 6,993 139,535 15 % Total securities AFS $ 1,034,993 $ 33 $ 85,429 $ 949,597 100 % Securities HTM: U.S. government agency securities $ 506,952 $ 65 $ 38,590 $ 468,427 74 % State, county and municipals 39,121 1 3,363 35,759 6 % Mortgage-backed securities 140,351 — 16,898 123,453 20 % Total securities HTM $ 686,424 $ 66 $ 58,851 $ 627,639 100 % December 31, 2021 (in thousands) Amortized Cost Gross Gross Estimated Fair Value Fair Value as % of Total Securities AFS: U.S. government agency securities $ 192,506 $ 6 $ 1,235 $ 191,277 21 % State, county and municipals 311,717 3,222 2,202 312,737 34 % Mortgage-backed securities 270,017 3,090 1,845 271,262 29 % Corporate debt securities 143,172 3,459 246 146,385 16 % Total securities AFS $ 917,412 $ 9,777 $ 5,528 $ 921,661 100 % Securities HTM: U.S. government agency securities $ 508,810 $ — $ 2,740 $ 506,070 78 % State, county and municipals 42,876 10 173 42,713 7 % Mortgage-backed securities 100,117 89 595 99,611 15 % Total securities HTM $ 651,803 $ 99 $ 3,508 $ 648,394 100 % All mortgage-backed securities included in the tables above were issued by U.S. government agencies and corporations. Investment securities with a carrying value of $786 million and $277 million, as of September 30, 2022 and December 31, 2021, respectively, were pledged as collateral to secure public deposits, as applicable, and for liquidity or other purposes as required by regulation. Accrued interest on investment securities totaled $7 million at September 30, 2022 and $5 million at December 31, 2021, and is included in accrued interest receivable and other assets on the consolidated balance sheets. The following table presents gross unrealized losses and the related estimated fair value of investment securities for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position. September 30, 2022 Less than 12 months 12 months or more Total ($ in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Number of Securities AFS: U.S. government agency securities $ 73,427 $ 3,649 $ 111,307 $ 5,883 $ 184,734 $ 9,532 18 State, county and municipals 325,212 29,803 66,031 13,105 391,243 42,908 906 Mortgage-backed securities 163,160 17,180 49,315 8,816 212,475 25,996 384 Corporate debt securities 123,488 5,218 11,668 1,775 135,156 6,993 94 Total $ 685,287 $ 55,850 $ 238,321 $ 29,579 $ 923,608 $ 85,429 1,402 Securities HTM: U.S. government agency securities $ 459,059 $ 38,590 $ — $ — $ 459,059 $ 38,590 6 State, county and municipals 25,308 2,663 4,495 700 29,803 3,363 58 Mortgage-backed securities 117,168 15,696 6,285 1,202 123,453 16,898 106 Total $ 601,535 $ 56,949 $ 10,780 $ 1,902 $ 612,315 $ 58,851 170 December 31, 2021 Less than 12 months 12 months or more Total ($ in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Number of Securities AFS: U.S. government agency securities $ 190,432 $ 1,235 $ — $ — $ 190,432 $ 1,235 11 State, county and municipals 103,950 2,119 1,777 83 105,727 2,202 132 Mortgage-backed securities 137,561 1,616 6,068 229 143,629 1,845 159 Corporate debt securities 23,267 246 — — 23,267 246 13 Total $ 455,210 $ 5,216 $ 7,845 $ 312 $ 463,055 $ 5,528 315 Securities HTM: U.S. government agency securities $ 505,938 $ 2,740 $ — $ — $ 505,938 $ 2,740 9 State, county and municipals 30,898 173 — — 30,898 173 46 Mortgage-backed securities 69,333 595 — — 69,333 595 72 Total $ 606,169 $ 3,508 $ — $ — $ 606,169 $ 3,508 127 Quarterly, 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 September 30, 2022 and December 31, 2021, 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 Company also evaluates securities HTM quarterly to determine whether an allowance for credit losses is necessary. In making this determination, management considers the facts and circumstances of the underlying investment securities. The U.S. government agency securities include U.S. Treasury Notes which are guaranteed by the U.S. government. For the state, county and municipal securities, management considers issuer bond ratings, historical loss rates by bond ratings, whether issuers continue to make timely principal and interest payments per the contractual terms of the investment securities, internal forecasts, and whether or not such investment securities provide insurance, other credit enhancement, or are pre-refunded by the issuers. For the mortgage-backed securities, all such securities were issued by U.S. government agencies and corporations, which are currently explicitly or implicitly guaranteed by the U.S. government and have a long history of no credit losses. Therefore, management determined no allowance for credit losses was necessary for the securities HTM. The amortized cost and fair value of investment securities 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. As of September 30, 2022 Securities AFS Securities HTM (in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in less than one year $ 220,008 $ 214,856 $ 5,032 $ 5,022 Due in one year through five years 189,795 180,208 510,548 471,106 Due after five years through ten years 233,100 206,362 26,740 24,404 Due after ten years 152,660 134,736 3,753 3,654 795,563 736,162 546,073 504,186 Mortgage-backed securities 239,430 213,435 140,351 123,453 Total investment securities $ 1,034,993 $ 949,597 $ 686,424 $ 627,639 Proceeds and realized gains or losses from the sale of AFS securities were as follows. Nine Months Ended September 30, (in thousands) 2022 2021 Gross gains $ 20 $ 4 Gross losses (5) (17) Gains (losses) on sales of securities AFS, net $ 15 $ (13) Proceeds from sales of securities AFS * $ 23,984 $ 15,975 * Includes proceeds of $21 million recognized on the sale of securities AFS upon acquisition of Charter for which no gain or loss was recognized in the income statement as the securities were marked to fair value through purchase accounting. Other Investments Other investments include “restricted” equity securities, equity securities with readily determinable fair values, and private company securities. As a member of the Federal Reserve Bank System and the Federal Home Loan Bank (“FHLB”) System, Nicolet is required to maintain an investment in the capital stock of these entities. These equity securities are “restricted” in that they can only be sold back to the respective institutions or another member institution at par. Therefore, they are less liquid than other exchange traded equity securities. As no ready market exists for these stocks, and they have no quoted market value, these investments are carried at cost. Also included are investments in other private companies that do not have quoted market prices, which are carried at cost less impairment charges, if any. The carrying value of other investments are summarized as follows. September 30, 2022 December 31, 2021 (in thousands) Amount Amount Federal Reserve Bank stock $ 34,722 $ 20,973 Federal Home Loan Bank (“FHLB”) stock 22,939 10,545 Equity securities with readily determinable fair values 4,482 5,660 Other investments 17,136 6,830 Total other investments $ 79,279 $ 44,008 |
Loans, Allowance for Credit Los
Loans, Allowance for Credit Losses - Loans, and Credit Quality | 9 Months Ended |
Sep. 30, 2022 | |
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. September 30, 2022 December 31, 2021 (in thousands) Amount % of Amount % of Commercial & industrial $ 1,268,252 21 % $ 1,042,256 23 % Owner-occupied commercial real estate (“CRE”) 954,933 16 787,189 17 Agricultural 1,017,498 17 794,728 17 CRE investment 1,132,951 19 818,061 18 Construction & land development 306,446 5 213,035 5 Residential construction 101,286 2 70,353 1 Residential first mortgage 970,384 16 713,983 15 Residential junior mortgage 176,428 3 131,424 3 Retail & other 56,259 1 50,807 1 Loans 5,984,437 100 % 4,621,836 100 % Less allowance for credit losses - Loans (“ACL-Loans”) 60,348 49,672 Loans, net $ 5,924,089 $ 4,572,164 Allowance for credit losses - Loans to loans 1.01 % 1.07 % Commercial and industrial loans included less than $1 million and $25 million of PPP loans at September 30, 2022 and December 31, 2021, respectively. Accrued interest on loans totaled $14 million and $11 million at September 30, 2022 and December 31, 2021, respectively, 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 Nine Months Ended Year Ended (in thousands) September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 December 31, 2021 Beginning balance $ 50,655 $ 32,561 $ 49,672 $ 32,173 $ 32,173 ACL on PCD loans acquired 1,709 1,896 1,709 1,896 5,159 Provision for credit losses 8,200 4,000 9,100 4,500 12,500 Charge-offs (300) (107) (442) (436) (513) Recoveries 84 49 309 266 353 Net (charge-offs) recoveries (216) (58) (133) (170) (160) Ending balance $ 60,348 $ 38,399 $ 60,348 $ 38,399 $ 49,672 The following tables present the balance and activity in the ACL-Loans by portfolio segment. Nine Months Ended September 30, 2022 (in thousands) Commercial Owner- Agricultural CRE Construction & land Residential Residential Residential Retail Total ACL-Loans * Beginning balance $ 12,613 $ 7,222 $ 9,547 $ 8,462 $ 1,812 $ 900 $ 6,844 $ 1,340 $ 932 $ 49,672 ACL on PCD loans 1,408 156 — 38 2 — 93 12 — 1,709 Provision 621 1,356 847 3,004 603 446 1,415 517 291 9,100 Charge-offs (152) (36) — — — — (65) — (189) (442) Recoveries 103 — — 169 — — 7 9 21 309 Net (charge-offs) recoveries (49) (36) — 169 — — (58) 9 (168) (133) Ending balance $ 14,593 $ 8,698 $ 10,394 $ 11,673 $ 2,417 $ 1,346 $ 8,294 $ 1,878 $ 1,055 $ 60,348 As % of ACL-Loans 24 % 15 % 17 % 19 % 4 % 2 % 14 % 3 % 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, 2021 (in thousands) Commercial Owner- Agricultural CRE Construction Residential Residential Residential Retail & ACL-Loans * Beginning balance $ 11,644 $ 5,872 $ 1,395 $ 5,441 $ 984 $ 421 $ 4,773 $ 1,086 $ 557 $ 32,173 ACL on PCD loans 723 1,045 2,585 415 103 — 272 13 3 5,159 Provision 196 305 5,615 2,608 725 479 1,892 237 443 12,500 Charge-offs (242) — (48) (4) — — (113) — (106) (513) Recoveries 292 — — 2 — — 20 4 35 353 Net (charge-offs) recoveries 50 — (48) (2) — — (93) 4 (71) (160) Ending balance $ 12,613 $ 7,222 $ 9,547 $ 8,462 $ 1,812 $ 900 $ 6,844 $ 1,340 $ 932 $ 49,672 As % of ACL-Loans 25 % 14 % 19 % 17 % 4 % 2 % 14 % 3 % 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, management applies an allocation methodology 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, purchased credit deteriorated 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. Allowance for Credit Losses-Unfunded Commitments : In addition to the ACL-Loans, the Company has established an ACL-Unfunded commitments, classified in accrued interest payable and other liabilities on the consolidated balance sheets. This reserve is maintained at a level that management believes is sufficient to absorb losses arising from unfunded loan commitments, and is determined quarterly based on methodology similar to the methodology for determining the ACL-Loans. The reserve for unfunded commitments was $3.0 million at September 30, 2022 and $2.4 million at December 31, 2021. Provision for Credit Losses : The provision for credit losses is determined by the Company as the amount to be added to the ACL loss accounts for various types of financial instruments including loans, investment securities, and off-balance sheet credit exposures after net charge-offs have been deducted to bring the ACL to a level that, in management’s judgment, is necessary to absorb expected credit losses over the lives of the respective financial instruments. See Note 5 for additional information regarding the ACL related to investment securities. The following table presents the components of the provision for credit losses. Three Months Ended Nine Months Ended Year Ended (in thousands) September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 December 31, 2021 Provision for credit losses on: Loans $ 8,200 $ 4,000 $ 9,100 $ 4,500 $ 12,500 Unfunded Commitments 400 2,000 550 2,000 2,400 Investment securities — — — — — Total $ 8,600 $ 6,000 $ 9,650 $ 6,500 $ 14,900 Collateral Dependent Loans : 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. September 30, 2022 Collateral Type (in thousands) Real Estate Other Business Assets Total Without an Allowance With an Allowance Allowance Allocation Commercial & industrial $ — $ 3,032 $ 3,032 $ 1,443 $ 1,589 $ 661 Owner-occupied CRE 5,205 — 5,205 3,526 1,679 297 Agricultural 13,974 6,439 20,413 16,900 3,513 205 CRE investment 2,196 — 2,196 404 1,792 242 Construction & land development 685 — 685 685 — — Residential construction — — — — — — Residential first mortgage 91 — 91 91 — — Residential junior mortgage — — — — — — Retail & other — — — — — — Total loans $ 22,151 $ 9,471 $ 31,622 $ 23,049 $ 8,573 $ 1,405 December 31, 2021 Collateral Type (in thousands) Real Estate Other Business Assets Total Without an Allowance With an Allowance Allowance Allocation Commercial & industrial $ — $ 2,296 $ 2,296 $ 1,842 $ 454 $ 258 Owner-occupied CRE 3,537 — 3,537 1,315 2,222 552 Agricultural 19,637 8,518 28,155 25,310 2,845 841 CRE investment 3,000 — 3,000 1,684 1,316 407 Construction & land development 1,038 — 1,038 655 383 211 Residential construction — — — — — — Residential first mortgage 473 — 473 473 — — Residential junior mortgage — — — — — — Retail & other — — — — — — Total loans $ 27,685 $ 10,814 $ 38,499 $ 31,279 $ 7,220 $ 2,269 Past Due and Nonaccrual Loans : The following tables present past due loans by portfolio segment. September 30, 2022 (in thousands) 30-89 Days Past 90 Days & Over or nonaccrual Current Total Commercial & industrial $ 954 $ 3,052 $ 1,264,246 $ 1,268,252 Owner-occupied CRE 513 5,806 948,614 954,933 Agricultural — 20,646 996,852 1,017,498 CRE investment 27 3,343 1,129,581 1,132,951 Construction & land development — 794 305,652 306,446 Residential construction 557 — 100,729 101,286 Residential first mortgage 1,621 4,309 964,454 970,384 Residential junior mortgage 249 277 175,902 176,428 Retail & other 138 99 56,022 56,259 Total loans $ 4,059 $ 38,326 $ 5,942,052 $ 5,984,437 Percent of total loans 0.1 % 0.6 % 99.3 % 100.0 % December 31, 2021 (in thousands) 30-89 Days Past 90 Days & Over or nonaccrual Current Total Commercial & industrial $ 94 $ 1,908 $ 1,040,254 $ 1,042,256 Owner-occupied CRE — 4,220 782,969 787,189 Agricultural 108 28,367 766,253 794,728 CRE investment 114 4,119 813,828 818,061 Construction & land development — 1,071 211,964 213,035 Residential construction 246 — 70,107 70,353 Residential first mortgage 2,592 4,132 707,259 713,983 Residential junior mortgage 23 243 131,158 131,424 Retail & other 115 94 50,598 50,807 Total loans $ 3,292 $ 44,154 $ 4,574,390 $ 4,621,836 Percent of total loans 0.1 % 0.9 % 99.0 % 100.0 % The following table presents nonaccrual loans by portfolio segment. September 30, 2022 December 31, 2021 (in thousands) Nonaccrual Loans % of Total Nonaccrual Loans % of Total Commercial & industrial $ 3,052 8 % $ 1,908 4 % Owner-occupied CRE 5,806 15 4,220 10 Agricultural 20,646 54 28,367 64 CRE investment 3,343 9 4,119 9 Construction & land development 794 2 1,071 3 Residential construction — — — — Residential first mortgage 4,309 11 4,132 9 Residential junior mortgage 277 1 243 1 Retail & other 99 — 94 — Nonaccrual loans $ 38,326 100 % $ 44,154 100 % Percent of total loans 0.6 % 0.9 % Credit Quality Information : The following tables present total loans by risk categories and year of origination. Loans acquired from Charter, Mackinac and County have been included in the September 30, 2022 and December 31, 2021 tables based upon the actual origination date. September 30, 2022 Amortized Cost Basis by Origination Year (in thousands) 2022 2021 2020 2019 2018 Prior Revolving Revolving to Term TOTAL Commercial & industrial Grades 1-4 $ 254,713 $ 246,195 $ 108,418 $ 76,355 $ 52,099 $ 83,341 $ 349,324 $ — $ 1,170,445 Grade 5 7,187 7,423 11,052 2,084 2,734 4,344 18,807 — 53,631 Grade 6 158 1,649 675 638 453 11,972 14,718 — 30,263 Grade 7 552 352 3,384 2,666 802 1,149 5,008 — 13,913 Total $ 262,610 $ 255,619 $ 123,529 $ 81,743 $ 56,088 $ 100,806 $ 387,857 $ — $ 1,268,252 Owner-occupied CRE Grades 1-4 $ 128,054 $ 189,922 $ 111,622 $ 104,840 $ 93,619 $ 269,617 $ 7,952 $ — $ 905,626 Grade 5 2,868 4,750 2,824 2,826 3,875 14,325 172 — 31,640 Grade 6 — — — 2,388 — 887 — — 3,275 Grade 7 440 414 6,244 377 85 6,832 — — 14,392 Total $ 131,362 $ 195,086 $ 120,690 $ 110,431 $ 97,579 $ 291,661 $ 8,124 $ — $ 954,933 Agricultural Grades 1-4 $ 238,387 $ 154,364 $ 93,529 $ 26,185 $ 20,967 $ 135,426 $ 195,784 $ — $ 864,642 Grade 5 12,109 15,525 2,823 2,028 1,504 42,561 23,090 — 99,640 Grade 6 49 1,491 31 33 — 5,322 425 — 7,351 Grade 7 7,072 2,651 863 2,024 3,655 20,388 9,212 — 45,865 Total $ 257,617 $ 174,031 $ 97,246 $ 30,270 $ 26,126 $ 203,697 $ 228,511 $ — $ 1,017,498 CRE investment Grades 1-4 $ 167,931 $ 228,709 $ 195,020 $ 141,749 $ 79,790 $ 261,027 $ 13,890 $ — $ 1,088,116 Grade 5 784 1,664 5,252 3,131 983 24,997 — — 36,811 Grade 6 — — — 1,183 2,029 1,078 206 — 4,496 Grade 7 — — — 73 249 2,991 215 — 3,528 Total $ 168,715 $ 230,373 $ 200,272 $ 146,136 $ 83,051 $ 290,093 $ 14,311 $ — $ 1,132,951 Construction & land development Grades 1-4 $ 82,695 $ 139,561 $ 15,958 $ 9,979 $ 27,553 $ 14,936 $ 14,361 $ — $ 305,043 Grade 5 40 — — 513 — 22 — — 575 Grade 6 — — — — — — — — — Grade 7 34 — — — — 794 — — 828 Total $ 82,769 $ 139,561 $ 15,958 $ 10,492 $ 27,553 $ 15,752 $ 14,361 $ — $ 306,446 Residential construction Grades 1-4 $ 61,266 $ 32,309 $ 1,490 $ 125 $ 338 $ 664 $ 5,094 $ — $ 101,286 Grade 5 — — — — — — — — — Grade 6 — — — — — — — — — Grade 7 — — — — — — — — — Total $ 61,266 $ 32,309 $ 1,490 $ 125 $ 338 $ 664 $ 5,094 $ — $ 101,286 Residential first mortgage Grades 1-4 $ 261,535 $ 266,465 $ 151,436 $ 73,915 $ 32,871 $ 167,038 $ 2,595 $ 3 $ 955,858 Grade 5 928 1,349 1,006 2,147 2,295 418 — — 8,143 Grade 6 — — — 717 — — — — 717 Grade 7 — 332 211 410 225 4,488 — — 5,666 Total $ 262,463 $ 268,146 $ 152,653 $ 77,189 $ 35,391 $ 171,944 $ 2,595 $ 3 $ 970,384 Residential junior mortgage Grades 1-4 $ 7,864 $ 4,875 $ 5,314 $ 3,227 $ 1,745 $ 3,439 $ 144,053 $ 5,293 $ 175,810 Grade 5 — — — — — 144 — — 144 Grade 6 — — — — — — — — — Grade 7 — 209 — 27 — 86 152 — 474 Total $ 7,864 $ 5,084 $ 5,314 $ 3,254 $ 1,745 $ 3,669 $ 144,205 $ 5,293 $ 176,428 Retail & other Grades 1-4 $ 11,363 $ 9,873 $ 4,751 $ 3,677 $ 1,220 $ 24,608 $ 667 $ — $ 56,159 Grade 5 — — — — — — — — — Grade 6 — — — — — — — — — Grade 7 — — 16 2 30 52 — — 100 Total $ 11,363 $ 9,873 $ 4,767 $ 3,679 $ 1,250 $ 24,660 $ 667 $ — $ 56,259 Total loans $ 1,246,029 $ 1,310,082 $ 721,919 $ 463,319 $ 329,121 $ 1,102,946 $ 805,725 $ 5,296 $ 5,984,437 December 31, 2021 Amortized Cost Basis by Origination Year (in thousands) 2021 2020 2019 2018 2017 Prior Revolving Revolving to Term TOTAL Commercial & industrial Grades 1-4 $ 282,369 $ 146,131 $ 99,702 $ 69,478 $ 50,557 $ 71,247 $ 288,115 $ — $ 1,007,599 Grade 5 1,685 1,905 4,369 5,809 4,860 2,097 8,408 — 29,133 Grade 6 598 54 16 687 67 91 391 — 1,904 Grade 7 — 440 692 337 976 743 432 — 3,620 Total $ 284,652 $ 148,530 $ 104,779 $ 76,311 $ 56,460 $ 74,178 $ 297,346 $ — $ 1,042,256 Owner-occupied CRE Grades 1-4 $ 154,578 $ 94,300 $ 105,226 $ 92,128 $ 75,583 $ 202,816 $ 6,945 $ — $ 731,576 Grade 5 7,753 3,019 6,529 2,543 2,515 13,905 656 — 36,920 Grade 6 — — 1,642 — 20 805 — — 2,467 Grade 7 — 3,124 1,914 — 3,526 6,672 990 — 16,226 Total $ 162,331 $ 100,443 $ 115,311 $ 94,671 $ 81,644 $ 224,198 $ 8,591 $ — $ 787,189 Agricultural Grades 1-4 $ 128,404 $ 87,844 $ 28,416 $ 22,887 $ 36,298 $ 86,104 $ 235,743 $ — $ 625,696 Grade 5 14,796 4,183 2,391 915 3,912 48,373 26,778 — 101,348 Grade 6 38 38 36 — 86 1,049 85 — 1,332 Grade 7 3,284 3,971 3,490 4,201 7,215 31,672 12,519 — 66,352 Total $ 146,522 $ 96,036 $ 34,333 $ 28,003 $ 47,511 $ 167,198 $ 275,125 $ — $ 794,728 CRE investment Grades 1-4 $ 192,274 $ 139,127 $ 136,306 $ 56,148 $ 65,026 $ 162,991 $ 11,289 $ — $ 763,161 Grade 5 11,081 3,001 6,497 3,945 6,726 17,527 — — 48,777 Grade 6 — — — — — — — — — Grade 7 — — 456 141 1,352 3,943 231 — 6,123 Total $ 203,355 $ 142,128 $ 143,259 $ 60,234 $ 73,104 $ 184,461 $ 11,520 $ — $ 818,061 Construction & land development Grades 1-4 $ 81,891 $ 72,415 $ 12,547 $ 19,511 $ 1,184 $ 11,274 $ 10,943 $ — $ 209,765 Grade 5 640 — 521 919 — 119 — — 2,199 Grade 6 — — — — — — — — — Grade 7 — — — — 17 1,054 — — 1,071 Total $ 82,531 $ 72,415 $ 13,068 $ 20,430 $ 1,201 $ 12,447 $ 10,943 $ — $ 213,035 Residential construction Grades 1-4 $ 58,352 $ 9,998 $ 155 $ 344 $ 1,072 $ 380 $ — $ — $ 70,301 Grade 5 — — 52 — — — — — 52 Grade 6 — — — — — — — — — Grade 7 — — — — — — — — — Total $ 58,352 $ 9,998 $ 207 $ 344 $ 1,072 $ 380 $ — $ — $ 70,353 Residential first mortgage Grades 1-4 $ 256,082 $ 152,932 $ 168,705 $ 22,568 $ 20,147 $ 82,479 $ 1,840 $ 4 $ 704,757 Grade 5 713 529 3,094 — — 1,508 — — 5,844 Grade 6 — — — — — — — — — Grade 7 — — 560 225 73 2,524 — — 3,382 Total $ 256,795 $ 153,461 $ 172,359 $ 22,793 $ 20,220 $ 86,511 $ 1,840 $ 4 $ 713,983 Residential junior mortgage Grades 1-4 $ 3,194 $ 3,139 $ 3,021 $ 1,501 $ 512 $ 1,969 $ 115,817 $ 1,426 $ 130,579 Grade 5 — — 29 — — — 439 — 468 Grade 6 — — — — — — — — — Grade 7 — — 172 — 23 44 138 — 377 Total $ 3,194 $ 3,139 $ 3,222 $ 1,501 $ 535 $ 2,013 $ 116,394 $ 1,426 $ 131,424 Retail & other Grades 1-4 $ 13,676 $ 6,886 $ 5,826 $ 2,053 $ 1,882 $ 20,102 $ 275 $ — $ 50,700 Grade 5 — — — — — — — — — Grade 6 — — — — — — — — — Grade 7 — 24 2 19 — 62 — — 107 Total $ 13,676 $ 6,910 $ 5,828 $ 2,072 $ 1,882 $ 20,164 $ 275 $ — $ 50,807 Total loans $ 1,211,408 $ 733,060 $ 592,366 $ 306,359 $ 283,629 $ 771,550 $ 722,034 $ 1,430 $ 4,621,836 The following tables present total loans by risk categories. September 30, 2022 (in thousands) Grades 1- 4 Grade 5 Grade 6 Grade 7 Total Commercial & industrial $ 1,170,445 $ 53,631 $ 30,263 $ 13,913 $ 1,268,252 Owner-occupied CRE 905,626 31,640 3,275 14,392 954,933 Agricultural 864,642 99,640 7,351 45,865 1,017,498 CRE investment 1,088,116 36,811 4,496 3,528 1,132,951 Construction & land development 305,043 575 — 828 306,446 Residential construction 101,286 — — — 101,286 Residential first mortgage 955,858 8,143 717 5,666 970,384 Residential junior mortgage 175,810 144 — 474 176,428 Retail & other 56,159 — — 100 56,259 Total loans $ 5,622,985 $ 230,584 $ 46,102 $ 84,766 $ 5,984,437 Percent of total 93.9 % 3.9 % 0.8 % 1.4 % 100.0 % December 31, 2021 (in thousands) Grades 1- 4 Grade 5 Grade 6 Grade 7 Total Commercial & industrial $ 1,007,599 $ 29,133 $ 1,904 $ 3,620 $ 1,042,256 Owner-occupied CRE 731,576 36,920 2,467 16,226 787,189 Agricultural 625,696 101,348 1,332 66,352 794,728 CRE investment 763,161 48,777 — 6,123 818,061 Construction & land development 209,765 2,199 — 1,071 213,035 Residential construction 70,301 52 — — 70,353 Residential first mortgage 704,757 5,844 — 3,382 713,983 Residential junior mortgage 130,579 468 — 377 131,424 Retail & other 50,700 — — 107 50,807 Total loans $ 4,294,134 $ 224,741 $ 5,703 $ 97,258 $ 4,621,836 Percent of total 92.9 % 4.9 % 0.1 % 2.1 % 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 monitored by the loan review function to help 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 : Loans are considered troubled debt restructurings if concessions have been granted to borrowers who are experiencing financial difficulties. The following table presents the loan composition of nonaccrual and performing TDRs. September 30, 2022 December 31, 2021 (in thousands) Performing Nonaccrual Total Performing Nonaccrual Total Commercial & industrial $ — $ 223 $ 223 $ — $ 197 $ 197 Owner-occupied CRE — 2,639 2,639 3,466 2,888 6,354 Agricultural — 14,181 14,181 — 16,835 16,835 CRE investment — 299 299 918 — 918 Construction & land development — 75 75 — 308 308 Residential first mortgage — 13 13 913 15 928 Residential junior mortgage — — — 146 — 146 Total $ — $ 17,430 $ 17,430 $ 5,443 $ 20,243 $ 25,686 The following table presents the number of loans modified in a TDR, pre-modification loan balance, and post-modification loan balance by loan composition. September 30, 2022 December 31, 2021 ($ in thousands) Number of Loans Pre-Modification Balance Current Balance Number of Loans Pre-Modification Balance Current Balance Commercial & industrial 4 $ 240 $ 223 2 $ 200 $ 197 Owner-occupied CRE 3 5,138 2,639 6 6,913 6,354 Agricultural 26 16,237 14,181 31 17,228 16,835 CRE investment 1 301 299 1 919 918 Construction & land development 1 533 75 1 533 308 Residential first mortgage 1 17 13 2 931 928 Residential junior mortgage — — — 1 166 146 Total 36 $ 22,466 $ 17,430 44 $ 26,890 $ 25,686 TDR concessions may include payment schedule modifications, interest rate concessions, maturity date extensions, bankruptcies, or some combination of these concessions. There were no loans which were classified as troubled debt restructurings during the previous twelve months that subsequently defaulted during 2021 or through September 30, 2022. As of September 30, 2022, there were no commitments to lend additional funds to debtors whose terms have been modified in troubled debt restructurings. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles and Servicing Rights | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles and Servicing Rights | Goodwill and Other Intangibles and 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 that would affect 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 regularly monitors economic factors for potential impairment indications on the value of our franchise, stability of deposits, and 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. (in thousands) September 30, 2022 December 31, 2021 Goodwill $ 369,849 $ 317,189 Core deposit intangibles 34,791 19,445 Customer list intangibles 2,477 2,858 Other intangibles 37,268 22,303 Goodwill and other intangibles, net $ 407,117 $ 339,492 Goodwill : A summary of goodwill was as follows. During 2022, goodwill increased due to the Charter acquisition, while during 2021, goodwill increased due to the acquisitions of Mackinac and County. See Note 2 for additional information on the Company’s acquisitions. Nine Months Ended Year Ended (in thousands) September 30, 2022 December 31, 2021 Goodwill: Goodwill at beginning of year $ 317,189 $ 163,151 Acquisitions 52,660 154,038 Goodwill at end of period $ 369,849 $ 317,189 Other intangible assets : Other intangible assets, consisting of core deposit intangibles and customer list intangibles, are amortized over their estimated finite lives. A summary of other intangible assets was as follows. During 2022, core deposit intangibles increased due to the Charter acquisition, while during 2021, core deposit intangibles increased due to the acquisitions of Mackinac and County. See Note 2 for additional information on the Company’s acquisitions. Nine Months Ended Year Ended (in thousands) September 30, 2022 December 31, 2021 Core deposit intangibles: Gross carrying amount $ 60,724 $ 41,360 Accumulated amortization (25,933) (21,915) Net book value $ 34,791 $ 19,445 Additions during the period $ 19,364 $ 13,595 Amortization during the period $ 4,018 $ 2,987 Customer list intangibles: Gross carrying amount $ 5,523 $ 5,523 Accumulated amortization (3,046) (2,665) Net book value $ 2,477 $ 2,858 Amortization during the period $ 381 $ 507 Mortgage servicing rights (“MSR”) : Mortgage servicing rights are amortized in proportion to and over the period of estimated net servicing income, and assessed for impairment at each reporting date, with the amortization recorded in mortgage income, net, in the consolidated statements of income. Mortgage servicing rights are carried at the lower of the initial capitalized amount, net of accumulated amortization, or estimated fair value, and are included in other assets in the consolidated balance sheets. A summary of the changes in the mortgage servicing rights asset was as follows. Nine Months Ended Year Ended (in thousands) September 30, 2022 December 31, 2021 Mortgage servicing rights asset: MSR asset at beginning of year $ 13,636 $ 10,230 Capitalized MSR 2,127 4,329 MSR asset acquired — 1,322 Amortization during the period (2,145) (2,245) MSR asset at end of period $ 13,618 $ 13,636 Valuation allowance at beginning of year $ (1,200) $ (1,000) Additions — (500) Reversals 700 300 Valuation allowance at end of period $ (500) $ (1,200) MSR asset, net $ 13,118 $ 12,436 Fair value of MSR asset at end of period $ 16,740 $ 15,599 Residential mortgage loans serviced for others $ 1,649,187 $ 1,583,577 Net book value of MSR asset to loans serviced for others 0.80 % 0.79 % 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. Loan servicing rights (“LSR”) : The Company acquired an LSR asset in connection with its acquisition of County on December 3, 2021 (see Note 2 for additional information on the County acquisition). The LSR asset was $13 million at September 30, 2022, and related to approximately $553 million of unpaid principal balances of loans serviced for others. The LSR asset will be amortized on an accelerated basis over the estimated remaining loan service period as the Company does not expect to add new loans to this servicing portfolio. See Note 9 for additional information on the fair value of the LSR asset. The following table shows the estimated future amortization expense for amortizing intangible assets and the servicing assets. The projections are based on existing asset balances, the current interest rate environment and prepayment speeds as of September 30, 2022. 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 LSR asset Year ending December 31, 2022 (remaining three months) $ 2,091 $ 126 $ 386 $ 2,004 2023 7,589 483 2,735 6,345 2024 6,298 449 2,635 3,673 2025 5,161 449 1,884 1,020 2026 3,983 249 1,394 — 2027 3,218 166 1,394 — Thereafter 6,451 555 3,190 — Total $ 34,791 $ 2,477 $ 13,618 $ 13,042 |
Short and Long-Term Borrowings
Short and Long-Term Borrowings | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022, short-term borrowings included $280 million of short-term FHLB advances, comprised of $80 million due in October 2022 at a weighted average rate of 2.70% and $200 million due in September 2023 at a weighted average rate of 4.30%. The Company did not have any outstanding short-term borrowings at December 31, 2021. 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) September 30, 2022 December 31, 2021 FHLB advances $ 33,000 $ 25,000 Junior subordinated debentures 39,512 38,885 Subordinated notes 152,724 153,030 Total long-term borrowings $ 225,236 $ 216,915 FHLB Advances : The Federal Home Loan Bank (“FHLB”) advances bear fixed rates, require interest-only monthly payments, and have maturity dates through February 2030. The weighted average rate of the FHLB advances was 1.09% at September 30, 2022 and 0.59% at December 31, 2021. Junior Subordinated Debentures : Each of the junior subordinated debentures was issued to an underlying statutory trust (the “statutory trusts”), which issued trust preferred securities and common securities and used the proceeds from the issuance of the common and the trust preferred securities to purchase the junior subordinated debentures of the Company. The debentures represent the sole asset of the statutory trusts. All of the common securities of the statutory trusts are owned by the Company. The statutory trusts are not included in the consolidated financial statements. The net effect of all the documents entered into with respect to the trust preferred securities is that the Company, through payments on its debentures, is liable for the distributions and other payments required on the trust preferred securities. 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 debenture. All the junior subordinated debentures are currently callable and may be redeemed in part or in full, at par, plus any accrued but unpaid interest. At September 30, 2022 and December 31, 2021, approximately $38 million and $37 million, respectively, of trust preferred securities qualify as Tier 1 capital. Subordinated Notes (the “Notes”) : In July 2021, the Company completed the private placement of $100 million in fixed-to-floating rate subordinated notes due in 2031, with 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 237.5 basis points. The Notes due in 2031 are redeemable beginning July 15, 2026 and quarterly thereafter on any interest payment date. In December 2021, Nicolet assumed two subordinated note issuances at a premium as the result of the County acquisition. One issuance was $30 million in fixed-to-floating rate subordinated notes due in 2028, with a fixed annual interest rate of 5.875% for the first five years, and will reset quarterly thereafter to the then current three-month LIBOR plus 2.88% The second issuance was $22 million in fixed-to-floating rate subordinated notes due in 2030, with a fixed annual interest rate of 7.00% for the first five years, and will reset quarterly thereafter to the then current SOFR plus 687.5 basis points. The Notes due in 2028 are redeemable beginning June 1, 2023, and quarterly thereafter on any interest payment date, while the Notes due in 2030 are redeemable beginning June 30, 2025, and quarterly thereafter on any interest payment date. All Notes qualify as Tier 2 capital for regulatory purposes. The following table shows the breakdown of junior subordinated debentures and subordinated notes. As of September 30, 2022 As of December 31, 2021 (in thousands) Maturity Interest Par Unamortized Premium /(Discount) / Debt Issue Costs (1) Carrying Interest Carrying Junior Subordinated Debentures: Mid-Wisconsin Statutory Trust I (2) 12/15/2035 4.72 % $ 10,310 $ (2,625) $ 7,685 1.63 % $ 7,537 Baylake Capital Trust II (3) 9/30/2036 5.02 % 16,598 (3,233) 13,365 1.57 % 13,187 First Menasha Statutory Trust (4) 3/17/2034 6.32 % 5,155 (498) 4,657 3.01 % 4,624 County Bancorp Statutory Trust II (5) 9/15/2035 4.82 % 6,186 (948) 5,238 1.73 % 5,061 County Bancorp Statutory Trust III (6) 6/15/2036 4.98 % 6,186 (1,006) 5,180 1.89 % 5,121 Fox River Valley Capital Trust (7) 5/30/2033 6.40 % 3,610 (223) 3,387 6.40 % 3,355 Total $ 48,045 $ (8,533) $ 39,512 $ 38,885 Subordinated Notes: Subordinated Notes due 2031 7/15/2031 3.13 % $ 100,000 $ (785) $ 99,215 3.13 % $ 99,057 County Subordinated Notes due 2028 6/1/2028 5.88 % 30,000 189 30,189 5.88 % 30,402 County Subordinated Notes due 2030 6/30/2030 7.00 % 22,400 920 23,320 7.00 % 23,571 Total $ 152,400 $ 324 $ 152,724 $ 153,030 (1) Represents the remaining unamortized premium or discount on debt issuances assumed in acquisitions, and represents the unamortized debt issue costs for the debt issued directly by Nicolet. (2) The debentures, assumed in April 2013 as the result of an acquisition, have a floating rate of three-month LIBOR plus 1.43%, adjusted quarterly. (3) The debentures, assumed in April 2016 as a result of an acquisition, have a floating rate of three-month LIBOR plus 1.35%, adjusted quarterly. (4) The debentures, assumed in April 2017 as the result of an acquisition, have a floating rate of three-month LIBOR plus 2.79%, adjusted quarterly. (5) The debentures, assumed in December 2021 as the result of an acquisition, have a floating rate of three-month LIBOR plus 1.53%, adjusted quarterly. (6) The debentures, assumed in December 2021 as the result of an acquisition, have a floating rate of three-month LIBOR plus 1.69%, adjusted quarterly. (7) The debentures, assumed in December 2021 as the result of an acquisition, have a floating rate of 5-year LIBOR plus 3.40%, which resets every five years. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
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 certain 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. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from independent sources. Unobservable inputs are inputs that reflect assumptions of the reporting entity about how market participants would price the asset or liability based on the best information available under the circumstances. The three fair value levels are: • Level 1 – quoted market prices in active markets for identical assets or liabilities that a company has the ability to access at the measurement date • Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly • Level 3 – significant unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity In instances where the fair value measurement is based on inputs from different levels, the level within which the entire fair value measurement will be categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. This assessment of the significance of an input requires management judgment. Recurring basis fair value measurements: The following table presents the balances of assets and liabilities measured at fair value on a recurring basis for the periods presented. (in thousands) Fair Value Measurements Using Measured at Fair Value on a Recurring Basis: Total Level 1 Level 2 Level 3 September 30, 2022 U.S. government agency securities $ 184,763 $ — $ 184,763 $ — State, county and municipals 411,864 — 410,021 1,843 Mortgage-backed securities 213,435 — 212,453 982 Corporate debt securities 139,535 — 134,214 5,321 Securities AFS $ 949,597 $ — $ 941,451 $ 8,146 Other investments (equity securities) $ 4,482 $ 4,482 $ — $ — Derivative assets — — — — Derivative liabilities — — — — December 31, 2021 U.S. government agency securities $ 191,277 $ — $ 191,277 $ — State, county and municipals 312,737 — 310,316 2,421 Mortgage-backed securities 271,262 — 270,260 1,002 Corporate debt securities 146,385 — 141,743 4,642 Securities AFS $ 921,661 $ — $ 913,596 $ 8,065 Other investments (equity securities) $ 5,660 $ 5,660 $ — $ — Derivative assets 1,064 — 1,064 — Derivative liabilities 1,064 — 1,064 — The following is a description of the valuation methodologies used by the Company for the assets and liabilities 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 are primarily trust preferred security investments, as well as certain municipal bonds and mortgage-backed securities. At September 30, 2022 and December 31, 2021, it was determined that carrying value was the best approximation of fair value for these Level 3 securities, based primarily on the internal analysis on these securities. The fair value of the derivative assets and liabilities is determined using a discounted cash flow analysis of the expected cash flows of each derivative, which considers the contractual terms of the underlying derivative financial instrument and observable market-based inputs, such as interest rate curves. The following table presents the changes in Level 3 securities AFS measured at fair value on a recurring basis. Nine Months Ended Year Ended Level 3 Fair Value Measurements: September 30, 2022 December 31, 2021 Balance at beginning of year $ 8,065 $ 3,130 Acquired balance 750 4,935 Maturities / Paydowns (442) — Unrealized gain / (loss) (227) — Balance at end of period $ 8,146 $ 8,065 Nonrecurring basis fair value measurements: The following table presents the Company’s assets measured at fair value on a nonrecurring basis, aggregated by level in the fair value hierarchy within which those measurements fall. (in thousands) Fair Value Measurements Using Measured at Fair Value on a Nonrecurring Basis: Total Level 1 Level 2 Level 3 September 30, 2022 Collateral dependent loans $ 30,217 $ — $ — $ 30,217 Other real estate owned (“OREO”) 2,134 — — 2,134 MSR asset 13,118 — — 13,118 LSR asset 13,042 — — 13,042 December 31, 2021 Collateral dependent loans $ 36,230 $ — $ — $ 36,230 OREO 11,955 — — 11,955 MSR asset 12,436 — — 12,436 LSR asset 20,055 — — 20,055 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, the estimated fair value is based upon the present value of expected future cash flows discounted at the loan’s effective interest rate, the estimated fair value of the underlying collateral with consideration for estimated selling costs if satisfaction of the loan depends on the sale of the collateral, or the estimated liquidity of the note. For OREO, the fair value is based upon the estimated fair value of the underlying collateral adjusted for the expected costs to sell. To estimate the fair value of the MSR asset, the underlying serviced loan pools are stratified by interest rate tranche and term of the loan, and a valuation model is used to calculate the present value of the expected future cash flows for each stratum. The servicing valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as costs to service, a discount rate, ancillary income, default rates and losses, and prepayment speeds. Although some of these assumptions are based on observable market data, other assumptions are based on unobservable estimates of what market participants would use to measure fair value. Financial instruments: The carrying amounts and estimated fair values of the Company’s financial instruments are shown below. September 30, 2022 (in thousands) Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 438,282 $ 438,282 $ 438,282 $ — $ — Certificates of deposit in other banks 13,510 13,409 — 13,409 — Securities AFS 949,597 949,597 — 941,451 8,146 Securities HTM 686,424 627,639 — 627,639 — Other investments, including equity securities 79,279 79,279 4,482 58,910 15,887 Loans held for sale 3,709 3,770 — 3,770 — Loans, net 5,924,089 5,638,877 — — 5,638,877 MSR asset 13,118 16,740 — — 16,740 LSR asset 13,042 13,042 — — 13,042 Accrued interest receivable 21,542 21,542 21,542 — — Financial liabilities: Deposits $ 7,395,902 $ 7,390,443 $ — $ — $ 7,390,443 Short-term borrowings 280,000 280,000 — 280,000 — Long-term borrowings 225,236 220,616 — 33,104 187,512 Accrued interest payable 3,533 3,533 3,533 — — December 31, 2021 (in thousands) Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 595,292 $ 595,292 $ 595,292 $ — $ — Certificates of deposit in other banks 21,920 22,236 — 22,236 — Securities AFS 921,661 921,661 — 913,596 8,065 Securities HTM 651,803 648,394 — 648,394 — Other investments, including equity securities 44,008 44,008 5,660 32,110 6,238 Loans held for sale 6,447 6,616 — 6,616 — Loans, net 4,572,164 4,606,851 — — 4,606,851 MSR asset 12,436 15,599 — — 15,599 LSR asset 20,055 20,055 — — 20,055 Accrued interest receivable 15,277 15,277 15,277 — — Financial liabilities: Deposits $ 6,465,916 $ 6,463,064 $ — $ — $ 6,463,064 Long-term borrowings 216,915 216,092 — 25,097 190,995 Accrued interest payable 3,078 3,078 3,078 — — The valuation methodologies for the financial instruments disclosed in the above table are described in Note 18, Fair Value Measurements, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. |
Other Assets and Other Liabilit
Other Assets and Other Liabilities Held for Sale | 9 Months Ended |
Sep. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Other Assets and Other Liabilities Held for Sale | Other Assets and Other Liabilities Held for SaleOn September 7, 2021, Nicolet entered into a Purchase and Assumption Agreement (the “Birmingham Agreement”) with Bank of Ann Arbor to sell Nicolet’s Birmingham, Michigan branch, including legacy mBank’s asset-based lending team (the “Birmingham Sale”). Pursuant to the terms of the Birmingham Agreement, Bank of Ann Arbor agreed to assume certain deposit liabilities and to acquire certain loans, as well as cash, personal property and other fixed assets associated with the Birmingham branch. The combined loan and deposit balances of the Birmingham branch (excluding certain loans and deposits not subject to the Birmingham Agreement) were approximately $199 million and $51 million, respectively, as of December 31, 2021. The Birmingham Sale closed on January 21, 2022. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
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 (loss), 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, 2021. |
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, 2021. |
Future Accounting Pronouncements | Future Accounting Pronouncements In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings (“TDRs”) and Vintage Disclosures . This ASU eliminates the accounting guidance for TDRs by creditors, while enhancing the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The ASU also requires public business entities to expand the vintage disclosures to include gross charge-offs by year of origination. The updated guidance is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. Adoption of this amendment is not expected to have a material impact on the Company’s consolidated financial statements; though, it will result in new disclosures of gross charge-offs by year of origination and on the types of loan modifications to borrowers experiencing financial difficulties. Current TDR disclosures will be also removed. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This ASU provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. It provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The updated guidance is effective for all entities as of March 12, 2020 through December 31, 2022. The Company continues to work through the cessation of LIBOR, including the modification of its loans and other financial instruments with attributes that are either directly or indirectly influenced by LIBOR. The Company expects to utilize the reference rate reform transition guidance, as applicable, and does not expect such adoption to have a material impact on its consolidated financial statements or financial disclosures. The Company will continue to assess the impact as the reference rate transition approaches June 30, 2023. |
Reclassifications | Reclassifications Certain amounts in the 2021 consolidated financial statements have been reclassified to conform to the 2022 presentation. These reclassifications were not material and did not impact previously reported net income or comprehensive income. |
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, management applies an allocation methodology 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, purchased credit deteriorated 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. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of assets acquired and liabilities assumed and preliminary purchase price allocation | A summary of the assets acquired and liabilities assumed in the Charter transaction, as of the acquisition date, including the purchase price allocation was as follows. (In millions, except share data) Acquired from Charter Fair Value Adjustments Estimated Fair Value Assets Acquired: Cash and cash equivalents $ 10 $ — $ 10 Investment securities 218 — 218 Loans 848 (21) 827 ACL-Loans (9) 7 (2) Premises and equipment 9 1 10 BOLI 29 — 29 Core deposit intangible — 19 19 Other assets 5 2 7 Total assets $ 1,110 $ 8 $ 1,118 Liabilities Assumed: Deposits $ 869 $ 1 $ 870 Borrowings 161 — 161 Other liabilities 3 — 3 Total liabilities $ 1,033 $ 1 $ 1,034 Net assets acquired $ 84 Purchase Price: Nicolet common stock issued (in shares) 1,262,360 Value of Nicolet common stock consideration $ 98 Cash consideration paid 39 Total purchase price $ 137 Preliminary goodwill $ 53 (In thousands) August 26, 2022 Purchase price of PCD loans at acquisition $ 24,031 Allowance for credit losses on PCD loans at acquisition 1,709 Par value of PCD acquired loans at acquisition $ 25,740 A summary of the assets acquired and liabilities assumed in the County transaction, as of the acquisition date, including the purchase price allocation was as follows. (In millions, except share data) Acquired from County Fair Value Adjustments Estimated Fair Value Assets Acquired: Cash and cash equivalents $ 20 $ — $ 20 Investment securities 301 (1) 300 Loans 1,015 (1) 1,014 ACL-Loans (11) 8 (3) Premises and equipment 21 (4) 17 BOLI 33 — 33 Core deposit intangible — 7 7 Loan servicing rights 20 — 20 Other assets 6 (2) 4 Total assets $ 1,405 $ 7 $ 1,412 Liabilities Assumed: Deposits $ 1,027 $ 3 $ 1,030 Borrowings 218 1 219 Other liabilities 8 — 8 Total liabilities $ 1,253 $ 4 $ 1,257 Net assets acquired $ 155 Purchase Price: Nicolet common stock issued (in shares) 2,366,243 Value of Nicolet common stock consideration $ 176 Cash consideration paid 48 Total purchase price $ 224 Write-off prior investment in County (1) Goodwill $ 70 (In thousands) December 3, 2021 Purchase price of PCD loans at acquisition $ 64,948 Allowance for credit losses on PCD loans at acquisition 3,262 Par value of PCD acquired loans at acquisition $ 68,210 A summary of the assets acquired and liabilities assumed in the Mackinac transaction, as of the acquisition date, including the purchase price allocation was as follows. (In millions, except share data) Acquired from Mackinac Fair Value Adjustments Estimated Fair Value Assets Acquired: Cash and cash equivalents $ 448 $ — $ 448 Investment securities 104 — 104 Loans 930 10 940 ACL-Loans (6) 4 (2) Premises and equipment 24 (3) 21 BOLI 16 — 16 Goodwill 20 (20) — Other intangibles 4 3 7 Other assets 25 (3) 22 Total assets $ 1,565 $ (9) $ 1,556 Liabilities Assumed: Deposits $ 1,365 $ 1 $ 1,366 Borrowings 28 1 29 Other liabilities 13 1 14 Total liabilities $ 1,406 $ 3 $ 1,409 Net assets acquired $ 147 Purchase Price: Nicolet common stock issued (in shares) 2,337,230 Value of Nicolet common stock consideration $ 180 Cash consideration paid 49 Total purchase price $ 229 Write-off prior investment in Mackinac (2) Goodwill $ 84 (In thousands) September 3, 2021 Purchase price of PCD loans at acquisition $ 10,605 Allowance for credit losses on PCD loans at acquisition 1,896 Par value of PCD acquired loans at acquisition $ 12,501 |
Schedule of unaudited pro forma information | The following unaudited pro forma information is presented for illustrative purposes only, and gives effect to the acquisitions of County and Mackinac as if the acquisitions had occurred on January 1, 2021, the beginning of the earliest period presented. The pro forma information should not be relied upon as being indicative of the historical results of operations the companies would have had if the acquisitions had occurred before such periods or the future results of operations that the companies will experience as a result of the mergers. The pro forma information, although helpful in illustrating the financial characteristics of the combined company under one set of assumptions, does not reflect the benefits of expected cost savings, opportunities to earn additional revenue, the impact of restructuring and merger-related expenses, or other factors that may result as a consequence of the mergers and, accordingly, does not attempt to predict or suggest future results. Three Months Ended Nine Months Ended (In thousands, except per share data) September 30, 2021 September 30, 2021 Total revenue, net of interest expense $ 84,802 $ 241,287 Net income $ 16,470 $ 62,243 Diluted earnings per common share $ 1.06 $ 4.09 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per common share | Presented below are the calculations for basic and diluted earnings per common share. Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except per share data) 2022 2021 2022 2021 Net income $ 18,510 $ 7,824 $ 66,659 $ 44,347 Weighted average common shares outstanding 13,890 10,392 13,648 10,098 Effect of dilutive common stock awards 420 384 479 405 Diluted weighted average common shares outstanding 14,310 10,776 14,127 10,503 Basic earnings per common share* $ 1.33 $ 0.75 $ 4.88 $ 4.39 Diluted earnings per common share* $ 1.29 $ 0.73 $ 4.72 $ 4.22 *Cumulative quarterly per share performance may not equal annual per share totals due to the effects of the amount and timing of capital increases. When computing earnings per share for an interim period, the denominator is based on the weighted average shares outstanding during the interim period, and not on an annualized weighted average basis. Accordingly, the sum of the earnings per share data for the quarters will not necessarily equal the year to date earnings per share data. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 nine months ended September 30, 2022 and 2021 were as follows. Nine Months Ended September 30, 2022 2021 Dividend yield — % — % Expected volatility 30 % 30 % Risk-free interest rate 3.03 % 1.16 % Expected average life 7 years 7 years Weighted average per share fair value of options $ 30.99 $ 26.55 |
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, 2021 1,833,246 $ 57.69 Granted 132,929 81.04 Exercise of stock options * (65,661) 41.26 Forfeited (8,500) 77.62 Outstanding - September 30, 2022 1,892,014 $ 59.81 6.2 $ 24,920 Exercisable - September 30, 2022 1,207,585 $ 50.84 4.9 $ 24,324 * The terms of the stock option agreements permit having a number of shares of stock withheld, the fair market value of which as of the date of exercise is sufficient to satisfy the exercise price and/or tax withholding requirements. For the nine months ended September 30, 2022, 6,073 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, 2021 $ 71.42 25,801 Granted 75.99 60,852 Vested * 71.51 (13,127) Forfeited 56.01 (600) Outstanding - September 30, 2022 $ 75.34 72,926 * 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, 465 shares were surrendered during the nine months ended September 30, 2022. |
Securities and Other Investme_2
Securities and Other Investments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and fair value of securities AFS | The amortized cost and fair value of securities AFS and HTM are summarized as follows. September 30, 2022 (in thousands) Amortized Cost Gross Gross Estimated Fair Value Fair Value as % of Total Securities AFS: U.S. government agency securities $ 194,295 $ — $ 9,532 $ 184,763 19 % State, county and municipals 454,740 32 42,908 411,864 43 % Mortgage-backed securities 239,430 1 25,996 213,435 23 % Corporate debt securities 146,528 — 6,993 139,535 15 % Total securities AFS $ 1,034,993 $ 33 $ 85,429 $ 949,597 100 % Securities HTM: U.S. government agency securities $ 506,952 $ 65 $ 38,590 $ 468,427 74 % State, county and municipals 39,121 1 3,363 35,759 6 % Mortgage-backed securities 140,351 — 16,898 123,453 20 % Total securities HTM $ 686,424 $ 66 $ 58,851 $ 627,639 100 % December 31, 2021 (in thousands) Amortized Cost Gross Gross Estimated Fair Value Fair Value as % of Total Securities AFS: U.S. government agency securities $ 192,506 $ 6 $ 1,235 $ 191,277 21 % State, county and municipals 311,717 3,222 2,202 312,737 34 % Mortgage-backed securities 270,017 3,090 1,845 271,262 29 % Corporate debt securities 143,172 3,459 246 146,385 16 % Total securities AFS $ 917,412 $ 9,777 $ 5,528 $ 921,661 100 % Securities HTM: U.S. government agency securities $ 508,810 $ — $ 2,740 $ 506,070 78 % State, county and municipals 42,876 10 173 42,713 7 % Mortgage-backed securities 100,117 89 595 99,611 15 % Total securities HTM $ 651,803 $ 99 $ 3,508 $ 648,394 100 % |
Schedule of amortized cost and fair value of securities HTM | The amortized cost and fair value of securities AFS and HTM are summarized as follows. September 30, 2022 (in thousands) Amortized Cost Gross Gross Estimated Fair Value Fair Value as % of Total Securities AFS: U.S. government agency securities $ 194,295 $ — $ 9,532 $ 184,763 19 % State, county and municipals 454,740 32 42,908 411,864 43 % Mortgage-backed securities 239,430 1 25,996 213,435 23 % Corporate debt securities 146,528 — 6,993 139,535 15 % Total securities AFS $ 1,034,993 $ 33 $ 85,429 $ 949,597 100 % Securities HTM: U.S. government agency securities $ 506,952 $ 65 $ 38,590 $ 468,427 74 % State, county and municipals 39,121 1 3,363 35,759 6 % Mortgage-backed securities 140,351 — 16,898 123,453 20 % Total securities HTM $ 686,424 $ 66 $ 58,851 $ 627,639 100 % December 31, 2021 (in thousands) Amortized Cost Gross Gross Estimated Fair Value Fair Value as % of Total Securities AFS: U.S. government agency securities $ 192,506 $ 6 $ 1,235 $ 191,277 21 % State, county and municipals 311,717 3,222 2,202 312,737 34 % Mortgage-backed securities 270,017 3,090 1,845 271,262 29 % Corporate debt securities 143,172 3,459 246 146,385 16 % Total securities AFS $ 917,412 $ 9,777 $ 5,528 $ 921,661 100 % Securities HTM: U.S. government agency securities $ 508,810 $ — $ 2,740 $ 506,070 78 % State, county and municipals 42,876 10 173 42,713 7 % Mortgage-backed securities 100,117 89 595 99,611 15 % Total securities HTM $ 651,803 $ 99 $ 3,508 $ 648,394 100 % |
Schedule of unrealized losses and fair value of investment securities | The following table presents gross unrealized losses and the related estimated fair value of investment securities 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. September 30, 2022 Less than 12 months 12 months or more Total ($ in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Number of Securities AFS: U.S. government agency securities $ 73,427 $ 3,649 $ 111,307 $ 5,883 $ 184,734 $ 9,532 18 State, county and municipals 325,212 29,803 66,031 13,105 391,243 42,908 906 Mortgage-backed securities 163,160 17,180 49,315 8,816 212,475 25,996 384 Corporate debt securities 123,488 5,218 11,668 1,775 135,156 6,993 94 Total $ 685,287 $ 55,850 $ 238,321 $ 29,579 $ 923,608 $ 85,429 1,402 Securities HTM: U.S. government agency securities $ 459,059 $ 38,590 $ — $ — $ 459,059 $ 38,590 6 State, county and municipals 25,308 2,663 4,495 700 29,803 3,363 58 Mortgage-backed securities 117,168 15,696 6,285 1,202 123,453 16,898 106 Total $ 601,535 $ 56,949 $ 10,780 $ 1,902 $ 612,315 $ 58,851 170 December 31, 2021 Less than 12 months 12 months or more Total ($ in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Number of Securities AFS: U.S. government agency securities $ 190,432 $ 1,235 $ — $ — $ 190,432 $ 1,235 11 State, county and municipals 103,950 2,119 1,777 83 105,727 2,202 132 Mortgage-backed securities 137,561 1,616 6,068 229 143,629 1,845 159 Corporate debt securities 23,267 246 — — 23,267 246 13 Total $ 455,210 $ 5,216 $ 7,845 $ 312 $ 463,055 $ 5,528 315 Securities HTM: U.S. government agency securities $ 505,938 $ 2,740 $ — $ — $ 505,938 $ 2,740 9 State, county and municipals 30,898 173 — — 30,898 173 46 Mortgage-backed securities 69,333 595 — — 69,333 595 72 Total $ 606,169 $ 3,508 $ — $ — $ 606,169 $ 3,508 127 |
Schedule of amortized cost and fair value of investment securities by contractual maturity | The amortized cost and fair value of investment securities 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. As of September 30, 2022 Securities AFS Securities HTM (in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in less than one year $ 220,008 $ 214,856 $ 5,032 $ 5,022 Due in one year through five years 189,795 180,208 510,548 471,106 Due after five years through ten years 233,100 206,362 26,740 24,404 Due after ten years 152,660 134,736 3,753 3,654 795,563 736,162 546,073 504,186 Mortgage-backed securities 239,430 213,435 140,351 123,453 Total investment securities $ 1,034,993 $ 949,597 $ 686,424 $ 627,639 |
Schedule of proceeds and realized gains or losses from the sale of AFS securities | Proceeds and realized gains or losses from the sale of AFS securities were as follows. Nine Months Ended September 30, (in thousands) 2022 2021 Gross gains $ 20 $ 4 Gross losses (5) (17) Gains (losses) on sales of securities AFS, net $ 15 $ (13) Proceeds from sales of securities AFS * $ 23,984 $ 15,975 * Includes proceeds of $21 million recognized on the sale of securities AFS upon acquisition of Charter for which no gain or loss was recognized in the income statement as the securities were marked to fair value through purchase accounting. |
Summary of other investments | The carrying value of other investments are summarized as follows. September 30, 2022 December 31, 2021 (in thousands) Amount Amount Federal Reserve Bank stock $ 34,722 $ 20,973 Federal Home Loan Bank (“FHLB”) stock 22,939 10,545 Equity securities with readily determinable fair values 4,482 5,660 Other investments 17,136 6,830 Total other investments $ 79,279 $ 44,008 |
Loans, Allowance for Credit L_2
Loans, Allowance for Credit Losses - Loans, and Credit Quality (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Schedule of loan composition by portfolio segment | The loan composition is summarized as follows. September 30, 2022 December 31, 2021 (in thousands) Amount % of Amount % of Commercial & industrial $ 1,268,252 21 % $ 1,042,256 23 % Owner-occupied commercial real estate (“CRE”) 954,933 16 787,189 17 Agricultural 1,017,498 17 794,728 17 CRE investment 1,132,951 19 818,061 18 Construction & land development 306,446 5 213,035 5 Residential construction 101,286 2 70,353 1 Residential first mortgage 970,384 16 713,983 15 Residential junior mortgage 176,428 3 131,424 3 Retail & other 56,259 1 50,807 1 Loans 5,984,437 100 % 4,621,836 100 % Less allowance for credit losses - Loans (“ACL-Loans”) 60,348 49,672 Loans, net $ 5,924,089 $ 4,572,164 Allowance for credit losses - Loans to loans 1.01 % 1.07 % |
Schedule of changes in allowance for credit losses | A roll forward of the allowance for credit losses - loans is summarized as follows. Three Months Ended Nine Months Ended Year Ended (in thousands) September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 December 31, 2021 Beginning balance $ 50,655 $ 32,561 $ 49,672 $ 32,173 $ 32,173 ACL on PCD loans acquired 1,709 1,896 1,709 1,896 5,159 Provision for credit losses 8,200 4,000 9,100 4,500 12,500 Charge-offs (300) (107) (442) (436) (513) Recoveries 84 49 309 266 353 Net (charge-offs) recoveries (216) (58) (133) (170) (160) Ending balance $ 60,348 $ 38,399 $ 60,348 $ 38,399 $ 49,672 The following tables present the balance and activity in the ACL-Loans by portfolio segment. Nine Months Ended September 30, 2022 (in thousands) Commercial Owner- Agricultural CRE Construction & land Residential Residential Residential Retail Total ACL-Loans * Beginning balance $ 12,613 $ 7,222 $ 9,547 $ 8,462 $ 1,812 $ 900 $ 6,844 $ 1,340 $ 932 $ 49,672 ACL on PCD loans 1,408 156 — 38 2 — 93 12 — 1,709 Provision 621 1,356 847 3,004 603 446 1,415 517 291 9,100 Charge-offs (152) (36) — — — — (65) — (189) (442) Recoveries 103 — — 169 — — 7 9 21 309 Net (charge-offs) recoveries (49) (36) — 169 — — (58) 9 (168) (133) Ending balance $ 14,593 $ 8,698 $ 10,394 $ 11,673 $ 2,417 $ 1,346 $ 8,294 $ 1,878 $ 1,055 $ 60,348 As % of ACL-Loans 24 % 15 % 17 % 19 % 4 % 2 % 14 % 3 % 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, 2021 (in thousands) Commercial Owner- Agricultural CRE Construction Residential Residential Residential Retail & ACL-Loans * Beginning balance $ 11,644 $ 5,872 $ 1,395 $ 5,441 $ 984 $ 421 $ 4,773 $ 1,086 $ 557 $ 32,173 ACL on PCD loans 723 1,045 2,585 415 103 — 272 13 3 5,159 Provision 196 305 5,615 2,608 725 479 1,892 237 443 12,500 Charge-offs (242) — (48) (4) — — (113) — (106) (513) Recoveries 292 — — 2 — — 20 4 35 353 Net (charge-offs) recoveries 50 — (48) (2) — — (93) 4 (71) (160) Ending balance $ 12,613 $ 7,222 $ 9,547 $ 8,462 $ 1,812 $ 900 $ 6,844 $ 1,340 $ 932 $ 49,672 As % of ACL-Loans 25 % 14 % 19 % 17 % 4 % 2 % 14 % 3 % 2 % 100 % |
Schedule of provision for credit losses | The following table presents the components of the provision for credit losses. Three Months Ended Nine Months Ended Year Ended (in thousands) September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 December 31, 2021 Provision for credit losses on: Loans $ 8,200 $ 4,000 $ 9,100 $ 4,500 $ 12,500 Unfunded Commitments 400 2,000 550 2,000 2,400 Investment securities — — — — — Total $ 8,600 $ 6,000 $ 9,650 $ 6,500 $ 14,900 |
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. September 30, 2022 Collateral Type (in thousands) Real Estate Other Business Assets Total Without an Allowance With an Allowance Allowance Allocation Commercial & industrial $ — $ 3,032 $ 3,032 $ 1,443 $ 1,589 $ 661 Owner-occupied CRE 5,205 — 5,205 3,526 1,679 297 Agricultural 13,974 6,439 20,413 16,900 3,513 205 CRE investment 2,196 — 2,196 404 1,792 242 Construction & land development 685 — 685 685 — — Residential construction — — — — — — Residential first mortgage 91 — 91 91 — — Residential junior mortgage — — — — — — Retail & other — — — — — — Total loans $ 22,151 $ 9,471 $ 31,622 $ 23,049 $ 8,573 $ 1,405 December 31, 2021 Collateral Type (in thousands) Real Estate Other Business Assets Total Without an Allowance With an Allowance Allowance Allocation Commercial & industrial $ — $ 2,296 $ 2,296 $ 1,842 $ 454 $ 258 Owner-occupied CRE 3,537 — 3,537 1,315 2,222 552 Agricultural 19,637 8,518 28,155 25,310 2,845 841 CRE investment 3,000 — 3,000 1,684 1,316 407 Construction & land development 1,038 — 1,038 655 383 211 Residential construction — — — — — — Residential first mortgage 473 — 473 473 — — Residential junior mortgage — — — — — — Retail & other — — — — — — Total loans $ 27,685 $ 10,814 $ 38,499 $ 31,279 $ 7,220 $ 2,269 |
Schedule of past due loans by portfolio segment | The following tables present past due loans by portfolio segment. September 30, 2022 (in thousands) 30-89 Days Past 90 Days & Over or nonaccrual Current Total Commercial & industrial $ 954 $ 3,052 $ 1,264,246 $ 1,268,252 Owner-occupied CRE 513 5,806 948,614 954,933 Agricultural — 20,646 996,852 1,017,498 CRE investment 27 3,343 1,129,581 1,132,951 Construction & land development — 794 305,652 306,446 Residential construction 557 — 100,729 101,286 Residential first mortgage 1,621 4,309 964,454 970,384 Residential junior mortgage 249 277 175,902 176,428 Retail & other 138 99 56,022 56,259 Total loans $ 4,059 $ 38,326 $ 5,942,052 $ 5,984,437 Percent of total loans 0.1 % 0.6 % 99.3 % 100.0 % December 31, 2021 (in thousands) 30-89 Days Past 90 Days & Over or nonaccrual Current Total Commercial & industrial $ 94 $ 1,908 $ 1,040,254 $ 1,042,256 Owner-occupied CRE — 4,220 782,969 787,189 Agricultural 108 28,367 766,253 794,728 CRE investment 114 4,119 813,828 818,061 Construction & land development — 1,071 211,964 213,035 Residential construction 246 — 70,107 70,353 Residential first mortgage 2,592 4,132 707,259 713,983 Residential junior mortgage 23 243 131,158 131,424 Retail & other 115 94 50,598 50,807 Total loans $ 3,292 $ 44,154 $ 4,574,390 $ 4,621,836 Percent of total loans 0.1 % 0.9 % 99.0 % 100.0 % |
Schedule of nonaccrual loans by portfolio segment | The following table presents nonaccrual loans by portfolio segment. September 30, 2022 December 31, 2021 (in thousands) Nonaccrual Loans % of Total Nonaccrual Loans % of Total Commercial & industrial $ 3,052 8 % $ 1,908 4 % Owner-occupied CRE 5,806 15 4,220 10 Agricultural 20,646 54 28,367 64 CRE investment 3,343 9 4,119 9 Construction & land development 794 2 1,071 3 Residential construction — — — — Residential first mortgage 4,309 11 4,132 9 Residential junior mortgage 277 1 243 1 Retail & other 99 — 94 — Nonaccrual loans $ 38,326 100 % $ 44,154 100 % Percent of total loans 0.6 % 0.9 % |
Schedule of loans by loan risk categories by portfolio segment | The following tables present total loans by risk categories and year of origination. Loans acquired from Charter, Mackinac and County have been included in the September 30, 2022 and December 31, 2021 tables based upon the actual origination date. September 30, 2022 Amortized Cost Basis by Origination Year (in thousands) 2022 2021 2020 2019 2018 Prior Revolving Revolving to Term TOTAL Commercial & industrial Grades 1-4 $ 254,713 $ 246,195 $ 108,418 $ 76,355 $ 52,099 $ 83,341 $ 349,324 $ — $ 1,170,445 Grade 5 7,187 7,423 11,052 2,084 2,734 4,344 18,807 — 53,631 Grade 6 158 1,649 675 638 453 11,972 14,718 — 30,263 Grade 7 552 352 3,384 2,666 802 1,149 5,008 — 13,913 Total $ 262,610 $ 255,619 $ 123,529 $ 81,743 $ 56,088 $ 100,806 $ 387,857 $ — $ 1,268,252 Owner-occupied CRE Grades 1-4 $ 128,054 $ 189,922 $ 111,622 $ 104,840 $ 93,619 $ 269,617 $ 7,952 $ — $ 905,626 Grade 5 2,868 4,750 2,824 2,826 3,875 14,325 172 — 31,640 Grade 6 — — — 2,388 — 887 — — 3,275 Grade 7 440 414 6,244 377 85 6,832 — — 14,392 Total $ 131,362 $ 195,086 $ 120,690 $ 110,431 $ 97,579 $ 291,661 $ 8,124 $ — $ 954,933 Agricultural Grades 1-4 $ 238,387 $ 154,364 $ 93,529 $ 26,185 $ 20,967 $ 135,426 $ 195,784 $ — $ 864,642 Grade 5 12,109 15,525 2,823 2,028 1,504 42,561 23,090 — 99,640 Grade 6 49 1,491 31 33 — 5,322 425 — 7,351 Grade 7 7,072 2,651 863 2,024 3,655 20,388 9,212 — 45,865 Total $ 257,617 $ 174,031 $ 97,246 $ 30,270 $ 26,126 $ 203,697 $ 228,511 $ — $ 1,017,498 CRE investment Grades 1-4 $ 167,931 $ 228,709 $ 195,020 $ 141,749 $ 79,790 $ 261,027 $ 13,890 $ — $ 1,088,116 Grade 5 784 1,664 5,252 3,131 983 24,997 — — 36,811 Grade 6 — — — 1,183 2,029 1,078 206 — 4,496 Grade 7 — — — 73 249 2,991 215 — 3,528 Total $ 168,715 $ 230,373 $ 200,272 $ 146,136 $ 83,051 $ 290,093 $ 14,311 $ — $ 1,132,951 Construction & land development Grades 1-4 $ 82,695 $ 139,561 $ 15,958 $ 9,979 $ 27,553 $ 14,936 $ 14,361 $ — $ 305,043 Grade 5 40 — — 513 — 22 — — 575 Grade 6 — — — — — — — — — Grade 7 34 — — — — 794 — — 828 Total $ 82,769 $ 139,561 $ 15,958 $ 10,492 $ 27,553 $ 15,752 $ 14,361 $ — $ 306,446 Residential construction Grades 1-4 $ 61,266 $ 32,309 $ 1,490 $ 125 $ 338 $ 664 $ 5,094 $ — $ 101,286 Grade 5 — — — — — — — — — Grade 6 — — — — — — — — — Grade 7 — — — — — — — — — Total $ 61,266 $ 32,309 $ 1,490 $ 125 $ 338 $ 664 $ 5,094 $ — $ 101,286 Residential first mortgage Grades 1-4 $ 261,535 $ 266,465 $ 151,436 $ 73,915 $ 32,871 $ 167,038 $ 2,595 $ 3 $ 955,858 Grade 5 928 1,349 1,006 2,147 2,295 418 — — 8,143 Grade 6 — — — 717 — — — — 717 Grade 7 — 332 211 410 225 4,488 — — 5,666 Total $ 262,463 $ 268,146 $ 152,653 $ 77,189 $ 35,391 $ 171,944 $ 2,595 $ 3 $ 970,384 Residential junior mortgage Grades 1-4 $ 7,864 $ 4,875 $ 5,314 $ 3,227 $ 1,745 $ 3,439 $ 144,053 $ 5,293 $ 175,810 Grade 5 — — — — — 144 — — 144 Grade 6 — — — — — — — — — Grade 7 — 209 — 27 — 86 152 — 474 Total $ 7,864 $ 5,084 $ 5,314 $ 3,254 $ 1,745 $ 3,669 $ 144,205 $ 5,293 $ 176,428 Retail & other Grades 1-4 $ 11,363 $ 9,873 $ 4,751 $ 3,677 $ 1,220 $ 24,608 $ 667 $ — $ 56,159 Grade 5 — — — — — — — — — Grade 6 — — — — — — — — — Grade 7 — — 16 2 30 52 — — 100 Total $ 11,363 $ 9,873 $ 4,767 $ 3,679 $ 1,250 $ 24,660 $ 667 $ — $ 56,259 Total loans $ 1,246,029 $ 1,310,082 $ 721,919 $ 463,319 $ 329,121 $ 1,102,946 $ 805,725 $ 5,296 $ 5,984,437 December 31, 2021 Amortized Cost Basis by Origination Year (in thousands) 2021 2020 2019 2018 2017 Prior Revolving Revolving to Term TOTAL Commercial & industrial Grades 1-4 $ 282,369 $ 146,131 $ 99,702 $ 69,478 $ 50,557 $ 71,247 $ 288,115 $ — $ 1,007,599 Grade 5 1,685 1,905 4,369 5,809 4,860 2,097 8,408 — 29,133 Grade 6 598 54 16 687 67 91 391 — 1,904 Grade 7 — 440 692 337 976 743 432 — 3,620 Total $ 284,652 $ 148,530 $ 104,779 $ 76,311 $ 56,460 $ 74,178 $ 297,346 $ — $ 1,042,256 Owner-occupied CRE Grades 1-4 $ 154,578 $ 94,300 $ 105,226 $ 92,128 $ 75,583 $ 202,816 $ 6,945 $ — $ 731,576 Grade 5 7,753 3,019 6,529 2,543 2,515 13,905 656 — 36,920 Grade 6 — — 1,642 — 20 805 — — 2,467 Grade 7 — 3,124 1,914 — 3,526 6,672 990 — 16,226 Total $ 162,331 $ 100,443 $ 115,311 $ 94,671 $ 81,644 $ 224,198 $ 8,591 $ — $ 787,189 Agricultural Grades 1-4 $ 128,404 $ 87,844 $ 28,416 $ 22,887 $ 36,298 $ 86,104 $ 235,743 $ — $ 625,696 Grade 5 14,796 4,183 2,391 915 3,912 48,373 26,778 — 101,348 Grade 6 38 38 36 — 86 1,049 85 — 1,332 Grade 7 3,284 3,971 3,490 4,201 7,215 31,672 12,519 — 66,352 Total $ 146,522 $ 96,036 $ 34,333 $ 28,003 $ 47,511 $ 167,198 $ 275,125 $ — $ 794,728 CRE investment Grades 1-4 $ 192,274 $ 139,127 $ 136,306 $ 56,148 $ 65,026 $ 162,991 $ 11,289 $ — $ 763,161 Grade 5 11,081 3,001 6,497 3,945 6,726 17,527 — — 48,777 Grade 6 — — — — — — — — — Grade 7 — — 456 141 1,352 3,943 231 — 6,123 Total $ 203,355 $ 142,128 $ 143,259 $ 60,234 $ 73,104 $ 184,461 $ 11,520 $ — $ 818,061 Construction & land development Grades 1-4 $ 81,891 $ 72,415 $ 12,547 $ 19,511 $ 1,184 $ 11,274 $ 10,943 $ — $ 209,765 Grade 5 640 — 521 919 — 119 — — 2,199 Grade 6 — — — — — — — — — Grade 7 — — — — 17 1,054 — — 1,071 Total $ 82,531 $ 72,415 $ 13,068 $ 20,430 $ 1,201 $ 12,447 $ 10,943 $ — $ 213,035 Residential construction Grades 1-4 $ 58,352 $ 9,998 $ 155 $ 344 $ 1,072 $ 380 $ — $ — $ 70,301 Grade 5 — — 52 — — — — — 52 Grade 6 — — — — — — — — — Grade 7 — — — — — — — — — Total $ 58,352 $ 9,998 $ 207 $ 344 $ 1,072 $ 380 $ — $ — $ 70,353 Residential first mortgage Grades 1-4 $ 256,082 $ 152,932 $ 168,705 $ 22,568 $ 20,147 $ 82,479 $ 1,840 $ 4 $ 704,757 Grade 5 713 529 3,094 — — 1,508 — — 5,844 Grade 6 — — — — — — — — — Grade 7 — — 560 225 73 2,524 — — 3,382 Total $ 256,795 $ 153,461 $ 172,359 $ 22,793 $ 20,220 $ 86,511 $ 1,840 $ 4 $ 713,983 Residential junior mortgage Grades 1-4 $ 3,194 $ 3,139 $ 3,021 $ 1,501 $ 512 $ 1,969 $ 115,817 $ 1,426 $ 130,579 Grade 5 — — 29 — — — 439 — 468 Grade 6 — — — — — — — — — Grade 7 — — 172 — 23 44 138 — 377 Total $ 3,194 $ 3,139 $ 3,222 $ 1,501 $ 535 $ 2,013 $ 116,394 $ 1,426 $ 131,424 Retail & other Grades 1-4 $ 13,676 $ 6,886 $ 5,826 $ 2,053 $ 1,882 $ 20,102 $ 275 $ — $ 50,700 Grade 5 — — — — — — — — — Grade 6 — — — — — — — — — Grade 7 — 24 2 19 — 62 — — 107 Total $ 13,676 $ 6,910 $ 5,828 $ 2,072 $ 1,882 $ 20,164 $ 275 $ — $ 50,807 Total loans $ 1,211,408 $ 733,060 $ 592,366 $ 306,359 $ 283,629 $ 771,550 $ 722,034 $ 1,430 $ 4,621,836 The following tables present total loans by risk categories. September 30, 2022 (in thousands) Grades 1- 4 Grade 5 Grade 6 Grade 7 Total Commercial & industrial $ 1,170,445 $ 53,631 $ 30,263 $ 13,913 $ 1,268,252 Owner-occupied CRE 905,626 31,640 3,275 14,392 954,933 Agricultural 864,642 99,640 7,351 45,865 1,017,498 CRE investment 1,088,116 36,811 4,496 3,528 1,132,951 Construction & land development 305,043 575 — 828 306,446 Residential construction 101,286 — — — 101,286 Residential first mortgage 955,858 8,143 717 5,666 970,384 Residential junior mortgage 175,810 144 — 474 176,428 Retail & other 56,159 — — 100 56,259 Total loans $ 5,622,985 $ 230,584 $ 46,102 $ 84,766 $ 5,984,437 Percent of total 93.9 % 3.9 % 0.8 % 1.4 % 100.0 % December 31, 2021 (in thousands) Grades 1- 4 Grade 5 Grade 6 Grade 7 Total Commercial & industrial $ 1,007,599 $ 29,133 $ 1,904 $ 3,620 $ 1,042,256 Owner-occupied CRE 731,576 36,920 2,467 16,226 787,189 Agricultural 625,696 101,348 1,332 66,352 794,728 CRE investment 763,161 48,777 — 6,123 818,061 Construction & land development 209,765 2,199 — 1,071 213,035 Residential construction 70,301 52 — — 70,353 Residential first mortgage 704,757 5,844 — 3,382 713,983 Residential junior mortgage 130,579 468 — 377 131,424 Retail & other 50,700 — — 107 50,807 Total loans $ 4,294,134 $ 224,741 $ 5,703 $ 97,258 $ 4,621,836 Percent of total 92.9 % 4.9 % 0.1 % 2.1 % 100.0 % |
Loan composition of nonaccrual and performing TDRs | The following table presents the loan composition of nonaccrual and performing TDRs. September 30, 2022 December 31, 2021 (in thousands) Performing Nonaccrual Total Performing Nonaccrual Total Commercial & industrial $ — $ 223 $ 223 $ — $ 197 $ 197 Owner-occupied CRE — 2,639 2,639 3,466 2,888 6,354 Agricultural — 14,181 14,181 — 16,835 16,835 CRE investment — 299 299 918 — 918 Construction & land development — 75 75 — 308 308 Residential first mortgage — 13 13 913 15 928 Residential junior mortgage — — — 146 — 146 Total $ — $ 17,430 $ 17,430 $ 5,443 $ 20,243 $ 25,686 The following table presents the number of loans modified in a TDR, pre-modification loan balance, and post-modification loan balance by loan composition. September 30, 2022 December 31, 2021 ($ in thousands) Number of Loans Pre-Modification Balance Current Balance Number of Loans Pre-Modification Balance Current Balance Commercial & industrial 4 $ 240 $ 223 2 $ 200 $ 197 Owner-occupied CRE 3 5,138 2,639 6 6,913 6,354 Agricultural 26 16,237 14,181 31 17,228 16,835 CRE investment 1 301 299 1 919 918 Construction & land development 1 533 75 1 533 308 Residential first mortgage 1 17 13 2 931 928 Residential junior mortgage — — — 1 166 146 Total 36 $ 22,466 $ 17,430 44 $ 26,890 $ 25,686 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles and Servicing Rights (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill and intangible assets | A summary of goodwill and other intangibles was as follows. (in thousands) September 30, 2022 December 31, 2021 Goodwill $ 369,849 $ 317,189 Core deposit intangibles 34,791 19,445 Customer list intangibles 2,477 2,858 Other intangibles 37,268 22,303 Goodwill and other intangibles, net $ 407,117 $ 339,492 |
Schedule of goodwill | A summary of goodwill was as follows. During 2022, goodwill increased due to the Charter acquisition, while during 2021, goodwill increased due to the acquisitions of Mackinac and County. See Note 2 for additional information on the Company’s acquisitions. Nine Months Ended Year Ended (in thousands) September 30, 2022 December 31, 2021 Goodwill: Goodwill at beginning of year $ 317,189 $ 163,151 Acquisitions 52,660 154,038 Goodwill at end of period $ 369,849 $ 317,189 |
Schedule of other intangible assets | A summary of other intangible assets was as follows. During 2022, core deposit intangibles increased due to the Charter acquisition, while during 2021, core deposit intangibles increased due to the acquisitions of Mackinac and County. See Note 2 for additional information on the Company’s acquisitions. Nine Months Ended Year Ended (in thousands) September 30, 2022 December 31, 2021 Core deposit intangibles: Gross carrying amount $ 60,724 $ 41,360 Accumulated amortization (25,933) (21,915) Net book value $ 34,791 $ 19,445 Additions during the period $ 19,364 $ 13,595 Amortization during the period $ 4,018 $ 2,987 Customer list intangibles: Gross carrying amount $ 5,523 $ 5,523 Accumulated amortization (3,046) (2,665) Net book value $ 2,477 $ 2,858 Amortization during the period $ 381 $ 507 |
Schedule of mortgage servicing rights | A summary of the changes in the mortgage servicing rights asset was as follows. Nine Months Ended Year Ended (in thousands) September 30, 2022 December 31, 2021 Mortgage servicing rights asset: MSR asset at beginning of year $ 13,636 $ 10,230 Capitalized MSR 2,127 4,329 MSR asset acquired — 1,322 Amortization during the period (2,145) (2,245) MSR asset at end of period $ 13,618 $ 13,636 Valuation allowance at beginning of year $ (1,200) $ (1,000) Additions — (500) Reversals 700 300 Valuation allowance at end of period $ (500) $ (1,200) MSR asset, net $ 13,118 $ 12,436 Fair value of MSR asset at end of period $ 16,740 $ 15,599 Residential mortgage loans serviced for others $ 1,649,187 $ 1,583,577 Net book value of MSR asset to loans serviced for others 0.80 % 0.79 % |
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 servicing assets. The projections are based on existing asset balances, the current interest rate environment and prepayment speeds as of September 30, 2022. 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 LSR asset Year ending December 31, 2022 (remaining three months) $ 2,091 $ 126 $ 386 $ 2,004 2023 7,589 483 2,735 6,345 2024 6,298 449 2,635 3,673 2025 5,161 449 1,884 1,020 2026 3,983 249 1,394 — 2027 3,218 166 1,394 — Thereafter 6,451 555 3,190 — Total $ 34,791 $ 2,477 $ 13,618 $ 13,042 |
Short and Long-Term Borrowings
Short and Long-Term Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of components of long-term borrowings | The components of long-term borrowings were as follows. (in thousands) September 30, 2022 December 31, 2021 FHLB advances $ 33,000 $ 25,000 Junior subordinated debentures 39,512 38,885 Subordinated notes 152,724 153,030 Total long-term borrowings $ 225,236 $ 216,915 |
Schedule of junior subordinated debentures and subordinated notes | The following table shows the breakdown of junior subordinated debentures and subordinated notes. As of September 30, 2022 As of December 31, 2021 (in thousands) Maturity Interest Par Unamortized Premium /(Discount) / Debt Issue Costs (1) Carrying Interest Carrying Junior Subordinated Debentures: Mid-Wisconsin Statutory Trust I (2) 12/15/2035 4.72 % $ 10,310 $ (2,625) $ 7,685 1.63 % $ 7,537 Baylake Capital Trust II (3) 9/30/2036 5.02 % 16,598 (3,233) 13,365 1.57 % 13,187 First Menasha Statutory Trust (4) 3/17/2034 6.32 % 5,155 (498) 4,657 3.01 % 4,624 County Bancorp Statutory Trust II (5) 9/15/2035 4.82 % 6,186 (948) 5,238 1.73 % 5,061 County Bancorp Statutory Trust III (6) 6/15/2036 4.98 % 6,186 (1,006) 5,180 1.89 % 5,121 Fox River Valley Capital Trust (7) 5/30/2033 6.40 % 3,610 (223) 3,387 6.40 % 3,355 Total $ 48,045 $ (8,533) $ 39,512 $ 38,885 Subordinated Notes: Subordinated Notes due 2031 7/15/2031 3.13 % $ 100,000 $ (785) $ 99,215 3.13 % $ 99,057 County Subordinated Notes due 2028 6/1/2028 5.88 % 30,000 189 30,189 5.88 % 30,402 County Subordinated Notes due 2030 6/30/2030 7.00 % 22,400 920 23,320 7.00 % 23,571 Total $ 152,400 $ 324 $ 152,724 $ 153,030 (1) Represents the remaining unamortized premium or discount on debt issuances assumed in acquisitions, and represents the unamortized debt issue costs for the debt issued directly by Nicolet. (2) The debentures, assumed in April 2013 as the result of an acquisition, have a floating rate of three-month LIBOR plus 1.43%, adjusted quarterly. (3) The debentures, assumed in April 2016 as a result of an acquisition, have a floating rate of three-month LIBOR plus 1.35%, adjusted quarterly. (4) The debentures, assumed in April 2017 as the result of an acquisition, have a floating rate of three-month LIBOR plus 2.79%, adjusted quarterly. (5) The debentures, assumed in December 2021 as the result of an acquisition, have a floating rate of three-month LIBOR plus 1.53%, adjusted quarterly. (6) The debentures, assumed in December 2021 as the result of an acquisition, have a floating rate of three-month LIBOR plus 1.69%, adjusted quarterly. (7) The debentures, assumed in December 2021 as the result of an acquisition, have a floating rate of 5-year LIBOR plus 3.40%, which resets every five years. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value on a recurring basis | The following table presents the balances of assets and liabilities measured at fair value on a recurring basis for the periods presented. (in thousands) Fair Value Measurements Using Measured at Fair Value on a Recurring Basis: Total Level 1 Level 2 Level 3 September 30, 2022 U.S. government agency securities $ 184,763 $ — $ 184,763 $ — State, county and municipals 411,864 — 410,021 1,843 Mortgage-backed securities 213,435 — 212,453 982 Corporate debt securities 139,535 — 134,214 5,321 Securities AFS $ 949,597 $ — $ 941,451 $ 8,146 Other investments (equity securities) $ 4,482 $ 4,482 $ — $ — Derivative assets — — — — Derivative liabilities — — — — December 31, 2021 U.S. government agency securities $ 191,277 $ — $ 191,277 $ — State, county and municipals 312,737 — 310,316 2,421 Mortgage-backed securities 271,262 — 270,260 1,002 Corporate debt securities 146,385 — 141,743 4,642 Securities AFS $ 921,661 $ — $ 913,596 $ 8,065 Other investments (equity securities) $ 5,660 $ 5,660 $ — $ — Derivative assets 1,064 — 1,064 — Derivative liabilities 1,064 — 1,064 — |
Changes in Level 3 assets measured at fair value on a recurring basis | The following table presents the changes in Level 3 securities AFS measured at fair value on a recurring basis. Nine Months Ended Year Ended Level 3 Fair Value Measurements: September 30, 2022 December 31, 2021 Balance at beginning of year $ 8,065 $ 3,130 Acquired balance 750 4,935 Maturities / Paydowns (442) — Unrealized gain / (loss) (227) — Balance at end of period $ 8,146 $ 8,065 |
Schedule of assets measured at fair value on a nonrecurring basis | The following table presents the Company’s assets measured at fair value on a nonrecurring basis, aggregated by level in the fair value hierarchy within which those measurements fall. (in thousands) Fair Value Measurements Using Measured at Fair Value on a Nonrecurring Basis: Total Level 1 Level 2 Level 3 September 30, 2022 Collateral dependent loans $ 30,217 $ — $ — $ 30,217 Other real estate owned (“OREO”) 2,134 — — 2,134 MSR asset 13,118 — — 13,118 LSR asset 13,042 — — 13,042 December 31, 2021 Collateral dependent loans $ 36,230 $ — $ — $ 36,230 OREO 11,955 — — 11,955 MSR asset 12,436 — — 12,436 LSR asset 20,055 — — 20,055 |
Schedule of estimated fair values of financial instruments | The carrying amounts and estimated fair values of the Company’s financial instruments are shown below. September 30, 2022 (in thousands) Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 438,282 $ 438,282 $ 438,282 $ — $ — Certificates of deposit in other banks 13,510 13,409 — 13,409 — Securities AFS 949,597 949,597 — 941,451 8,146 Securities HTM 686,424 627,639 — 627,639 — Other investments, including equity securities 79,279 79,279 4,482 58,910 15,887 Loans held for sale 3,709 3,770 — 3,770 — Loans, net 5,924,089 5,638,877 — — 5,638,877 MSR asset 13,118 16,740 — — 16,740 LSR asset 13,042 13,042 — — 13,042 Accrued interest receivable 21,542 21,542 21,542 — — Financial liabilities: Deposits $ 7,395,902 $ 7,390,443 $ — $ — $ 7,390,443 Short-term borrowings 280,000 280,000 — 280,000 — Long-term borrowings 225,236 220,616 — 33,104 187,512 Accrued interest payable 3,533 3,533 3,533 — — December 31, 2021 (in thousands) Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 595,292 $ 595,292 $ 595,292 $ — $ — Certificates of deposit in other banks 21,920 22,236 — 22,236 — Securities AFS 921,661 921,661 — 913,596 8,065 Securities HTM 651,803 648,394 — 648,394 — Other investments, including equity securities 44,008 44,008 5,660 32,110 6,238 Loans held for sale 6,447 6,616 — 6,616 — Loans, net 4,572,164 4,606,851 — — 4,606,851 MSR asset 12,436 15,599 — — 15,599 LSR asset 20,055 20,055 — — 20,055 Accrued interest receivable 15,277 15,277 15,277 — — Financial liabilities: Deposits $ 6,465,916 $ 6,463,064 $ — $ — $ 6,463,064 Long-term borrowings 216,915 216,092 — 25,097 190,995 Accrued interest payable 3,078 3,078 3,078 — — |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 26, 2022 | Dec. 03, 2021 | Sep. 03, 2021 |
Charter Bankshares, Inc. | |||
Business Acquisition [Line Items] | |||
Entity shares issued per acquiree share (in shares) | 15.458 | ||
Cash paid per acquiree share (in dollars per share) | $ 475 | ||
Number of common stock issued for consideration (in shares) | 1,262,360 | ||
Value of Nicolet common stock consideration | $ 98 | ||
Cash consideration paid | 39 | ||
Total purchase price | $ 137 | ||
County Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Entity shares issued per acquiree share (in shares) | 0.48 | ||
Cash paid per acquiree share (in dollars per share) | $ 37.18 | ||
Number of common stock issued for consideration (in shares) | 2,366,243 | ||
Value of Nicolet common stock consideration | $ 176 | ||
Cash consideration paid | 48 | ||
Total purchase price | $ 224 | ||
Shares exchanged for cash (in shares) | 1,237,000 | ||
Mackinac Financial Corporation | |||
Business Acquisition [Line Items] | |||
Entity shares issued per acquiree share (in shares) | 0.22 | ||
Cash paid per acquiree share (in dollars per share) | $ 4.64 | ||
Number of common stock issued for consideration (in shares) | 2,337,230 | ||
Value of Nicolet common stock consideration | $ 180 | ||
Cash consideration paid | 49 | ||
Total purchase price | $ 229 |
Acquisitions - Summary of the a
Acquisitions - Summary of the assets acquired and liabilities assumed, including preliminary purchase price allocation (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | 10 Months Ended | 12 Months Ended | ||
Aug. 26, 2022 | Dec. 03, 2021 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Purchase Price: | ||||||
Goodwill | $ 52,660 | $ 154,038 | ||||
Charter Bankshares, Inc. | ||||||
Assets Acquired: | ||||||
Cash and cash equivalents | $ 10,000 | $ 10,000 | 10,000 | $ 10,000 | ||
Investment securities | 218,000 | 218,000 | 218,000 | 218,000 | ||
Loans | 848,000 | 827,000 | 827,000 | 827,000 | ||
ACL-Loans | (9,000) | (2,000) | (2,000) | (2,000) | ||
Premises and equipment | 9,000 | 10,000 | 10,000 | 10,000 | ||
BOLI | 29,000 | 29,000 | 29,000 | 29,000 | ||
Core deposit intangible | 0 | 19,000 | 19,000 | 19,000 | ||
Other assets | 5,000 | 7,000 | 7,000 | 7,000 | ||
Total assets | 1,110,000 | 1,118,000 | 1,118,000 | 1,118,000 | ||
Liabilities Assumed: | ||||||
Deposits | 869,000 | 870,000 | 870,000 | 870,000 | ||
Borrowings | 161,000 | 161,000 | 161,000 | 161,000 | ||
Other liabilities | 3,000 | 3,000 | 3,000 | 3,000 | ||
Total liabilities | $ 1,033,000 | 1,034,000 | 1,034,000 | 1,034,000 | ||
Net assets acquired | 84,000 | 84,000 | 84,000 | |||
Assets Acquired: | ||||||
Cash and cash equivalents | 0 | |||||
Investment securities | 0 | |||||
Loans | (21,000) | |||||
ACL-Loans | 7,000 | |||||
Premises and equipment | 1,000 | |||||
BOLI | 0 | |||||
Core deposit intangible | 19,000 | |||||
Other assets | 2,000 | |||||
Total assets | 8,000 | |||||
Liabilities Assumed: | ||||||
Deposits | 1,000 | |||||
Borrowings | 0 | |||||
Other liabilities | 0 | |||||
Total liabilities | 1,000 | |||||
Purchase Price: | ||||||
Nicolet common stock issued (in shares) | 1,262,360 | |||||
Value of Nicolet common stock consideration | $ 98,000 | |||||
Cash consideration paid | 39,000 | |||||
Total purchase price | 137,000 | |||||
Goodwill | $ 53,000 | |||||
County Bancorp, Inc. | ||||||
Assets Acquired: | ||||||
Cash and cash equivalents | $ 20,000 | 20,000 | 20,000 | 20,000 | ||
Investment securities | 301,000 | 300,000 | 300,000 | 300,000 | ||
Loans | 1,015,000 | 1,014,000 | 1,014,000 | 1,014,000 | ||
ACL-Loans | (11,000) | (3,000) | (3,000) | (3,000) | ||
Premises and equipment | 21,000 | 17,000 | 17,000 | 17,000 | ||
BOLI | 33,000 | 33,000 | 33,000 | 33,000 | ||
Core deposit intangible | 0 | 7,000 | 7,000 | 7,000 | ||
Loan servicing rights | 20,000 | 20,000 | 20,000 | 20,000 | ||
Other assets | 6,000 | 4,000 | 4,000 | 4,000 | ||
Total assets | 1,405,000 | 1,412,000 | 1,412,000 | 1,412,000 | ||
Liabilities Assumed: | ||||||
Deposits | 1,027,000 | 1,030,000 | 1,030,000 | 1,030,000 | ||
Borrowings | 218,000 | 219,000 | 219,000 | 219,000 | ||
Other liabilities | 8,000 | 8,000 | 8,000 | 8,000 | ||
Total liabilities | $ 1,253,000 | 1,257,000 | 1,257,000 | 1,257,000 | ||
Net assets acquired | $ 155,000 | $ 155,000 | 155,000 | |||
Assets Acquired: | ||||||
Cash and cash equivalents | 0 | |||||
Investment securities | (1,000) | |||||
Loans | (1,000) | |||||
ACL-Loans | 8,000 | |||||
Premises and equipment | (4,000) | |||||
BOLI | 0 | |||||
Core deposit intangible | 7,000 | |||||
Loan servicing rights | 0 | |||||
Other assets | (2,000) | |||||
Total assets | 7,000 | |||||
Liabilities Assumed: | ||||||
Deposits | 3,000 | |||||
Borrowings | 1,000 | |||||
Other liabilities | 0 | |||||
Total liabilities | $ 4,000 | |||||
Purchase Price: | ||||||
Nicolet common stock issued (in shares) | 2,366,243 | |||||
Value of Nicolet common stock consideration | $ 176,000 | |||||
Cash consideration paid | 48,000 | |||||
Total purchase price | 224,000 | |||||
Write-off prior investment | (1,000) | |||||
Goodwill | $ 70,000 |
Acquisitions - Summary of the_2
Acquisitions - Summary of the assets acquired (including goodwill) and liabilities assumed, including preliminary purchase price allocation (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | 13 Months Ended | ||
Sep. 03, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | Dec. 31, 2020 | |
Assets Acquired: | |||||
Goodwill | $ 369,849 | $ 317,189 | $ 369,849 | $ 163,151 | |
Purchase Price: | |||||
Goodwill | 52,660 | $ 154,038 | |||
Mackinac Financial Corporation | |||||
Assets Acquired: | |||||
Cash and cash equivalents | $ 448,000 | 448,000 | 448,000 | ||
Investment securities | 104,000 | 104,000 | 104,000 | ||
Loans | 930,000 | 940,000 | 940,000 | ||
ACL-Loans | (6,000) | (2,000) | (2,000) | ||
Premises and equipment | 24,000 | 21,000 | 21,000 | ||
BOLI | 16,000 | 16,000 | 16,000 | ||
Goodwill | 20,000 | 0 | 0 | ||
Core deposit intangible | 4,000 | 7,000 | 7,000 | ||
Other assets | 25,000 | 22,000 | 22,000 | ||
Total assets | 1,565,000 | 1,556,000 | 1,556,000 | ||
Liabilities Assumed: | |||||
Deposits | 1,365,000 | 1,366,000 | 1,366,000 | ||
Borrowings | 28,000 | 29,000 | 29,000 | ||
Other liabilities | 13,000 | 14,000 | 14,000 | ||
Total liabilities | $ 1,406,000 | 1,409,000 | 1,409,000 | ||
Net assets acquired | $ 147,000 | 147,000 | |||
Assets Acquired: | |||||
Cash and cash equivalents | 0 | ||||
Investment securities | 0 | ||||
Loans | 10,000 | ||||
ACL-Loans | 4,000 | ||||
Premises and equipment | (3,000) | ||||
BOLI | 0 | ||||
Goodwill | (20,000) | ||||
Core deposit intangible | 3,000 | ||||
Other assets | (3,000) | ||||
Total assets | (9,000) | ||||
Liabilities Assumed: | |||||
Deposits | 1,000 | ||||
Borrowings | 1,000 | ||||
Other liabilities | 1,000 | ||||
Total liabilities | $ 3,000 | ||||
Purchase Price: | |||||
Nicolet common stock issued (in shares) | 2,337,230 | ||||
Value of Nicolet common stock consideration | $ 180,000 | ||||
Cash consideration paid | 49,000 | ||||
Total purchase price | 229,000 | ||||
Write-off prior investment | (2,000) | ||||
Goodwill | $ 84,000 |
Acquisitions - Carrying value o
Acquisitions - Carrying value of PCD loans acquired (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Aug. 26, 2022 | Dec. 03, 2021 | Sep. 03, 2021 |
Charter Bankshares, Inc. | ||||
Business Acquisition [Line Items] | ||||
Allowance for credit losses on PCD loans at acquisition | $ 2,000 | $ 9,000 | ||
Loans | 827,000 | 848,000 | ||
Charter Bankshares, Inc. | PCD loans aquired | ||||
Business Acquisition [Line Items] | ||||
Purchase price of PCD loans at acquisition | 24,031 | |||
Allowance for credit losses on PCD loans at acquisition | 1,709 | |||
Loans | $ 25,740 | |||
County Bancorp, Inc. | ||||
Business Acquisition [Line Items] | ||||
Allowance for credit losses on PCD loans at acquisition | 3,000 | $ 11,000 | ||
Loans | 1,014,000 | 1,015,000 | ||
County Bancorp, Inc. | PCD loans aquired | ||||
Business Acquisition [Line Items] | ||||
Purchase price of PCD loans at acquisition | 64,948 | |||
Allowance for credit losses on PCD loans at acquisition | 3,262 | |||
Loans | $ 68,210 | |||
Mackinac Financial Corporation | ||||
Business Acquisition [Line Items] | ||||
Allowance for credit losses on PCD loans at acquisition | 2,000 | $ 6,000 | ||
Loans | $ 940,000 | 930,000 | ||
Mackinac Financial Corporation | PCD loans aquired | ||||
Business Acquisition [Line Items] | ||||
Purchase price of PCD loans at acquisition | 10,605 | |||
Allowance for credit losses on PCD loans at acquisition | 1,896 | |||
Loans | $ 12,501 |
Acquisitions - Unaudited pro fo
Acquisitions - Unaudited pro forma information (Details) - County Bancorp, Inc and Mackinac Financial Corporation - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Business Acquisition [Line Items] | ||
Total revenue, net of interest expense | $ 84,802 | $ 241,287 |
Net income | $ 16,470 | $ 62,243 |
Diluted earnings per common share (in dollars per share) | $ 1.06 | $ 4.09 |
Earnings per Common Share - Cal
Earnings per Common Share - Calculations for basic and diluted earnings (loss) per common share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 18,510 | $ 7,824 | $ 66,659 | $ 44,347 |
Weighted average common shares outstanding (in shares) | 13,890,066 | 10,391,896 | 13,647,973 | 10,098,492 |
Effect of dilutive common stock awards (in shares) | 420,000 | 384,000 | 479,000 | 405,000 |
Diluted weighted average common shares outstanding (in shares) | 14,310,275 | 10,775,591 | 14,126,772 | 10,503,163 |
Basic earnings per common share (in dollars per share) | $ 1.33 | $ 0.75 | $ 4.88 | $ 4.39 |
Diluted earnings per common share (in dollars per share) | $ 1.29 | $ 0.73 | $ 4.72 | $ 4.22 |
Earnings per Common Share - Nar
Earnings per Common Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Shares excluded from calculation of earnings per common share (in shares) | 0.2 | 0.2 | 0.1 | 0.1 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares were available for grant (in shares) | 700,000 | |
Stock-based compensation expense | $ 4.6 | $ 4.5 |
Unrecognized compensation cost | $ 19.9 | |
Remaining vesting period over which cost expected to be recognized | 4 years | |
Tax benefit for impact of share based compensation | $ 0.4 | 0.3 |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total intrinsic value of options exercised | $ 3.3 | 1.7 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock grant (in shares) | 60,852 | |
Restricted Stock | Director | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 0.7 | $ 0.7 |
Restricted stock grant (in shares) | 8,852 | 9,595 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted average assumptions (Details) - Stock Incentive Plan - Stock Options - $ / shares | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0% | 0% |
Expected volatility | 30% | 30% |
Risk-free interest rate | 3.03% | 1.16% |
Expected average life (in years) | 7 years | 7 years |
Weighted average per share fair value of options (in dollars per share) | $ 30.99 | $ 26.55 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock option activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | |
Weighted Average Exercise Price | |
Shares surrendered to satisfy exercise price and/or tax withholding requirements (in shares) | 6,073 |
Stock Incentive Plan | Stock Options | |
Option Shares Outstanding | |
Beginning balance outstanding (in shares) | 1,833,246 |
Granted (in shares) | 132,929 |
Exercise of stock options (in shares) | (65,661) |
Forfeited (in shares) | (8,500) |
Ending balance outstanding (in shares) | 1,892,014 |
Weighted Average Exercise Price | |
Beginning balance outstanding (in dollars per share) | $ / shares | $ 57.69 |
Granted (in dollars per share) | $ / shares | 81.04 |
Exercise of stock options (in dollars per share) | $ / shares | 41.26 |
Forfeited (in dollars per share) | $ / shares | 77.62 |
Ending balance outstanding (in dollars per share) | $ / shares | $ 59.81 |
Exercisable (in shares) | 1,207,585 |
Exercisable (in dollars per share) | $ / shares | $ 50.84 |
Weighted average remaining life outstanding (in years) | 6 years 2 months 12 days |
Weighted average remaining life exercisable (in years) | 4 years 10 months 24 days |
Aggregate intrinsic value outstanding | $ | $ 24,920 |
Aggregate intrinsic value exercisable | $ | $ 24,324 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted stock award activity (Details) | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Restricted Shares Outstanding | |
Shares surrendered to satisfy exercise price and/or tax withholding requirements (in shares) | 6,073 |
Restricted Stock | |
Weighted Average Grant Date Fair Value | |
Beginning balance outstanding (in dollars per share) | $ / shares | $ 71.42 |
Granted (in dollars per share) | $ / shares | 75.99 |
Vested (in dollars per share) | $ / shares | 71.51 |
Forfeited (in dollars per share) | $ / shares | 56.01 |
Ending balance outstanding (in dollars per share) | $ / shares | $ 75.34 |
Restricted Shares Outstanding | |
Beginning balance outstanding (in shares) | 25,801 |
Granted (in shares) | 60,852 |
Vested (in shares) | (13,127) |
Forfeited (in shares) | (600) |
Ending balance outstanding (in shares) | 72,926 |
Shares surrendered to satisfy exercise price and/or tax withholding requirements (in shares) | 465 |
Securities and Other Investme_3
Securities and Other Investments - Amortized costs and fair value of securities AFS and HTM (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,034,993 | $ 917,412 |
Gross Unrealized Gains | 33 | 9,777 |
Gross Unrealized Losses | 85,429 | 5,528 |
Estimated Fair Value | $ 949,597 | $ 921,661 |
Fair Value as % of Total | 100% | 100% |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 686,424 | $ 651,803 |
Gross Unrealized Gains | 66 | 99 |
Gross Unrealized Losses | 58,851 | 3,508 |
Estimated Fair Value | $ 627,639 | $ 648,394 |
Fair Value as % of Total | 100% | 100% |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 194,295 | $ 192,506 |
Gross Unrealized Gains | 0 | 6 |
Gross Unrealized Losses | 9,532 | 1,235 |
Estimated Fair Value | $ 184,763 | $ 191,277 |
Fair Value as % of Total | 19% | 21% |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 506,952 | $ 508,810 |
Gross Unrealized Gains | 65 | 0 |
Gross Unrealized Losses | 38,590 | 2,740 |
Estimated Fair Value | $ 468,427 | $ 506,070 |
Fair Value as % of Total | 74% | 78% |
State, county and municipals | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 454,740 | $ 311,717 |
Gross Unrealized Gains | 32 | 3,222 |
Gross Unrealized Losses | 42,908 | 2,202 |
Estimated Fair Value | $ 411,864 | $ 312,737 |
Fair Value as % of Total | 43% | 34% |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 39,121 | $ 42,876 |
Gross Unrealized Gains | 1 | 10 |
Gross Unrealized Losses | 3,363 | 173 |
Estimated Fair Value | $ 35,759 | $ 42,713 |
Fair Value as % of Total | 6% | 7% |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 239,430 | $ 270,017 |
Gross Unrealized Gains | 1 | 3,090 |
Gross Unrealized Losses | 25,996 | 1,845 |
Estimated Fair Value | $ 213,435 | $ 271,262 |
Fair Value as % of Total | 23% | 29% |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 140,351 | $ 100,117 |
Gross Unrealized Gains | 0 | 89 |
Gross Unrealized Losses | 16,898 | 595 |
Estimated Fair Value | $ 123,453 | $ 99,611 |
Fair Value as % of Total | 20% | 15% |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 146,528 | $ 143,172 |
Gross Unrealized Gains | 0 | 3,459 |
Gross Unrealized Losses | 6,993 | 246 |
Estimated Fair Value | $ 139,535 | $ 146,385 |
Fair Value as % of Total | 15% | 16% |
Securities and Other Investme_4
Securities and Other Investments - Narrative (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Investments securities pledged as collateral | $ 786,000,000 | $ 277,000,000 | |
Accrued interest on investment securities | 7,000,000 | 5,000,000 | |
Allowance for credit losses on securities AFS | 0 | 0 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Proceeds from sales of securities AFS | 23,984,000 | $ 15,975,000 | |
Charter Bankshares, Inc. | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Proceeds from sales of securities AFS | 21,000,000 | ||
Mortgage-backed securities | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Allowance for credit losses on securities HTM | $ 0 | $ 0 |
Securities and Other Investme_5
Securities and Other Investments - Gross unrealized losses and the related fair value of investment securities (Details) $ in Thousands | Sep. 30, 2022 USD ($) Security | Dec. 31, 2021 USD ($) Security |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | $ 685,287 | $ 455,210 |
Less than 12 months, unrealized losses | 55,850 | 5,216 |
12 months or more, fair value | 238,321 | 7,845 |
12 months or more, unrealized losses | 29,579 | 312 |
Total, fair value | 923,608 | 463,055 |
Total, unrealized losses | $ 85,429 | $ 5,528 |
Total, number of securities | Security | 1,402 | 315 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 months, fair value | $ 601,535 | $ 606,169 |
Less than 12 months, unrealized losses | 56,949 | 3,508 |
12 months or more, fair value | 10,780 | 0 |
12 months or more, unrealized losses | 1,902 | 0 |
Total, fair value | 612,315 | 606,169 |
Total, unrealized losses | $ 58,851 | $ 3,508 |
Total, number of securities | Security | 170 | 127 |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | $ 73,427 | $ 190,432 |
Less than 12 months, unrealized losses | 3,649 | 1,235 |
12 months or more, fair value | 111,307 | 0 |
12 months or more, unrealized losses | 5,883 | 0 |
Total, fair value | 184,734 | 190,432 |
Total, unrealized losses | $ 9,532 | $ 1,235 |
Total, number of securities | Security | 18 | 11 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 months, fair value | $ 459,059 | $ 505,938 |
Less than 12 months, unrealized losses | 38,590 | 2,740 |
12 months or more, fair value | 0 | 0 |
12 months or more, unrealized losses | 0 | 0 |
Total, fair value | 459,059 | 505,938 |
Total, unrealized losses | $ 38,590 | $ 2,740 |
Total, number of securities | Security | 6 | 9 |
State, county and municipals | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | $ 325,212 | $ 103,950 |
Less than 12 months, unrealized losses | 29,803 | 2,119 |
12 months or more, fair value | 66,031 | 1,777 |
12 months or more, unrealized losses | 13,105 | 83 |
Total, fair value | 391,243 | 105,727 |
Total, unrealized losses | $ 42,908 | $ 2,202 |
Total, number of securities | Security | 906 | 132 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 months, fair value | $ 25,308 | $ 30,898 |
Less than 12 months, unrealized losses | 2,663 | 173 |
12 months or more, fair value | 4,495 | 0 |
12 months or more, unrealized losses | 700 | 0 |
Total, fair value | 29,803 | 30,898 |
Total, unrealized losses | $ 3,363 | $ 173 |
Total, number of securities | Security | 58 | 46 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | $ 163,160 | $ 137,561 |
Less than 12 months, unrealized losses | 17,180 | 1,616 |
12 months or more, fair value | 49,315 | 6,068 |
12 months or more, unrealized losses | 8,816 | 229 |
Total, fair value | 212,475 | 143,629 |
Total, unrealized losses | $ 25,996 | $ 1,845 |
Total, number of securities | Security | 384 | 159 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 months, fair value | $ 117,168 | $ 69,333 |
Less than 12 months, unrealized losses | 15,696 | 595 |
12 months or more, fair value | 6,285 | 0 |
12 months or more, unrealized losses | 1,202 | 0 |
Total, fair value | 123,453 | 69,333 |
Total, unrealized losses | $ 16,898 | $ 595 |
Total, number of securities | Security | 106 | 72 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | $ 123,488 | $ 23,267 |
Less than 12 months, unrealized losses | 5,218 | 246 |
12 months or more, fair value | 11,668 | 0 |
12 months or more, unrealized losses | 1,775 | 0 |
Total, fair value | 135,156 | 23,267 |
Total, unrealized losses | $ 6,993 | $ 246 |
Total, number of securities | Security | 94 | 13 |
Securities and Other Investme_6
Securities and Other Investments - Amortized cost and fair values of investment securities by contractual maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Due in less than one year | $ 220,008 | |
Due in one year through five years | 189,795 | |
Due after five years through ten years | 233,100 | |
Due after ten years | 152,660 | |
Allocated and single maturity date | 795,563 | |
Amortized Cost | 1,034,993 | $ 917,412 |
Fair Value | ||
Due in less than one year | 214,856 | |
Due in one year through five years | 180,208 | |
Due after five years through ten years | 206,362 | |
Due after ten years | 134,736 | |
Allocated and single maturity date | 736,162 | |
Fair Value | 949,597 | 921,661 |
Amortized Cost | ||
Due in less than one year | 5,032 | |
Due in one year through five years | 510,548 | |
Due after five years through ten years | 26,740 | |
Due after ten years | 3,753 | |
Allocated and single maturity date | 546,073 | |
Amortized Cost | 686,424 | 651,803 |
Fair Value | ||
Due in less than one year | 5,022 | |
Due in one year through five years | 471,106 | |
Due after five years through ten years | 24,404 | |
Due after ten years | 3,654 | |
Allocated and single maturity date | 504,186 | |
Fair Value | 627,639 | 648,394 |
Mortgage-backed securities | ||
Amortized Cost | ||
Mortgage-backed securities | 239,430 | |
Amortized Cost | 239,430 | 270,017 |
Fair Value | ||
Mortgage-backed securities | 213,435 | |
Fair Value | 213,435 | 271,262 |
Amortized Cost | ||
Due in less than one year | 140,351 | |
Amortized Cost | 140,351 | 100,117 |
Fair Value | ||
Mortgage-backed securities | 123,453 | |
Fair Value | $ 123,453 | $ 99,611 |
Securities and Other Investme_7
Securities and Other Investments - Proceeds and realized gains or losses from the sale of AFS securities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Gross gains | $ 20 | $ 4 |
Gross losses | (5) | (17) |
Gains (losses) on sales of securities AFS, net | 15 | (13) |
Proceeds from sales of securities AFS | 23,984 | 15,975 |
Debt Securities, Available-for-sale [Line Items] | ||
Proceeds from sales of securities AFS | 23,984 | $ 15,975 |
Charter Bankshares, Inc. | ||
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales of securities AFS | 21,000 | |
Debt Securities, Available-for-sale [Line Items] | ||
Proceeds from sales of securities AFS | $ 21,000 |
Securities and Other Investme_8
Securities and Other Investments - Other Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Federal Reserve Bank stock | $ 34,722 | $ 20,973 |
Federal Home Loan Bank (“FHLB”) stock | 22,939 | 10,545 |
Equity securities with readily determinable fair values | 4,482 | 5,660 |
Other investments | 17,136 | 6,830 |
Total other investments | $ 79,279 | $ 44,008 |
Loans, Allowance for Credit L_3
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Summary of loan composition (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 5,984,437 | $ 4,621,836 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | 60,348 | $ 50,655 | 49,672 | $ 38,399 | $ 32,561 | $ 32,173 |
Loans, net | $ 5,924,089 | $ 4,572,164 | ||||
Allowance for credit losses - Loans to loans (in percent) | 1.01% | 1.07% | ||||
% of Total | 100% | 100% | ||||
Retail & other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 56,259 | $ 50,807 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 1,055 | $ 932 | 557 | |||
% of Total | 1% | 1% | ||||
Commercial | Commercial & industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 1,268,252 | $ 1,042,256 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 14,593 | $ 12,613 | 11,644 | |||
% of Total | 21% | 23% | ||||
Commercial | Owner-occupied commercial real estate (“CRE”) | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 954,933 | $ 787,189 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 8,698 | $ 7,222 | 5,872 | |||
% of Total | 16% | 17% | ||||
Commercial | Agricultural | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 1,017,498 | $ 794,728 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 10,394 | $ 9,547 | 1,395 | |||
% of Total | 17% | 17% | ||||
Commercial real estate | CRE investment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 1,132,951 | $ 818,061 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 11,673 | $ 8,462 | 5,441 | |||
% of Total | 19% | 18% | ||||
Commercial real estate | Construction & land development | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 306,446 | $ 213,035 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 2,417 | $ 1,812 | 984 | |||
% of Total | 5% | 5% | ||||
Residential | Residential first mortgage | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 970,384 | $ 713,983 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 8,294 | $ 6,844 | 4,773 | |||
% of Total | 16% | 15% | ||||
Residential | Residential junior mortgage | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 176,428 | $ 131,424 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 1,878 | $ 1,340 | 1,086 | |||
% of Total | 3% | 3% | ||||
Residential | Residential construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 101,286 | $ 70,353 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 1,346 | $ 900 | $ 421 | |||
% of Total | 2% | 1% |
Loans, Allowance for Credit L_4
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Narrative (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 USD ($) branch | Dec. 31, 2021 USD ($) branch | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans (less than) | $ 5,984,437,000 | $ 4,621,836,000 |
Accrued interest on loans | 14,000,000 | 11,000,000 |
Material loans criteria for ACL-Loans adequacy calculation | 250,000 | |
Reserve for unfunded commitments | $ 3,000,000 | $ 2,400,000 |
Number of loans classified as troubled debt with subsequent default | branch | 0 | 0 |
Commercial | Paycheck Protection Program Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans (less than) | $ 1,000,000 | $ 25,000,000 |
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 | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | $ 50,655 | $ 32,561 | $ 49,672 | $ 32,173 | $ 32,173 |
ACL on PCD loans acquired | 1,709 | 1,896 | 1,709 | 1,896 | 5,159 |
Provision for credit losses | 8,200 | 4,000 | 9,100 | 4,500 | 12,500 |
Charge-offs | (300) | (107) | (442) | (436) | (513) |
Recoveries | 84 | 49 | 309 | 266 | 353 |
Net (charge-offs) recoveries | (216) | (58) | (133) | (170) | (160) |
Ending balance | $ 60,348 | $ 38,399 | $ 60,348 | $ 38,399 | $ 49,672 |
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 | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
ACL-Loans | |||||
Beginning balance | $ 50,655 | $ 32,561 | $ 49,672 | $ 32,173 | $ 32,173 |
ACL on PCD loans acquired | 1,709 | 1,896 | 1,709 | 1,896 | 5,159 |
Provision for credit losses | 8,200 | 4,000 | 9,100 | 4,500 | 12,500 |
Charge-offs | (300) | (107) | (442) | (436) | (513) |
Recoveries | 84 | 49 | 309 | 266 | 353 |
Net (charge-offs) recoveries | (216) | (58) | (133) | (170) | (160) |
Ending balance | 60,348 | $ 38,399 | $ 60,348 | 38,399 | $ 49,672 |
As % of ACL-Loans | 100% | 100% | |||
Retail & other | |||||
ACL-Loans | |||||
Beginning balance | $ 932 | 557 | $ 557 | ||
ACL on PCD loans acquired | 0 | 3 | |||
Provision for credit losses | 291 | 443 | |||
Charge-offs | (189) | (106) | |||
Recoveries | 21 | 35 | |||
Net (charge-offs) recoveries | (168) | (71) | |||
Ending balance | 1,055 | $ 1,055 | $ 932 | ||
As % of ACL-Loans | 2% | 2% | |||
Commercial | Commercial & industrial | |||||
ACL-Loans | |||||
Beginning balance | $ 12,613 | 11,644 | $ 11,644 | ||
ACL on PCD loans acquired | 1,408 | 723 | |||
Provision for credit losses | 621 | 196 | |||
Charge-offs | (152) | (242) | |||
Recoveries | 103 | 292 | |||
Net (charge-offs) recoveries | (49) | 50 | |||
Ending balance | 14,593 | $ 14,593 | $ 12,613 | ||
As % of ACL-Loans | 24% | 25% | |||
Commercial | Owner-occupied CRE | |||||
ACL-Loans | |||||
Beginning balance | $ 7,222 | 5,872 | $ 5,872 | ||
ACL on PCD loans acquired | 156 | 1,045 | |||
Provision for credit losses | 1,356 | 305 | |||
Charge-offs | (36) | 0 | |||
Recoveries | 0 | 0 | |||
Net (charge-offs) recoveries | (36) | 0 | |||
Ending balance | 8,698 | $ 8,698 | $ 7,222 | ||
As % of ACL-Loans | 15% | 14% | |||
Commercial | Agricultural | |||||
ACL-Loans | |||||
Beginning balance | $ 9,547 | 1,395 | $ 1,395 | ||
ACL on PCD loans acquired | 0 | 2,585 | |||
Provision for credit losses | 847 | 5,615 | |||
Charge-offs | 0 | (48) | |||
Recoveries | 0 | 0 | |||
Net (charge-offs) recoveries | 0 | (48) | |||
Ending balance | 10,394 | $ 10,394 | $ 9,547 | ||
As % of ACL-Loans | 17% | 19% | |||
Commercial real estate | CRE investment | |||||
ACL-Loans | |||||
Beginning balance | $ 8,462 | 5,441 | $ 5,441 | ||
ACL on PCD loans acquired | 38 | 415 | |||
Provision for credit losses | 3,004 | 2,608 | |||
Charge-offs | 0 | (4) | |||
Recoveries | 169 | 2 | |||
Net (charge-offs) recoveries | 169 | (2) | |||
Ending balance | 11,673 | $ 11,673 | $ 8,462 | ||
As % of ACL-Loans | 19% | 17% | |||
Commercial real estate | Construction & land development | |||||
ACL-Loans | |||||
Beginning balance | $ 1,812 | 984 | $ 984 | ||
ACL on PCD loans acquired | 2 | 103 | |||
Provision for credit losses | 603 | 725 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Net (charge-offs) recoveries | 0 | 0 | |||
Ending balance | 2,417 | $ 2,417 | $ 1,812 | ||
As % of ACL-Loans | 4% | 4% | |||
Residential | Residential first mortgage | |||||
ACL-Loans | |||||
Beginning balance | $ 6,844 | 4,773 | $ 4,773 | ||
ACL on PCD loans acquired | 93 | 272 | |||
Provision for credit losses | 1,415 | 1,892 | |||
Charge-offs | (65) | (113) | |||
Recoveries | 7 | 20 | |||
Net (charge-offs) recoveries | (58) | (93) | |||
Ending balance | 8,294 | $ 8,294 | $ 6,844 | ||
As % of ACL-Loans | 14% | 14% | |||
Residential | Residential junior mortgage | |||||
ACL-Loans | |||||
Beginning balance | $ 1,340 | 1,086 | $ 1,086 | ||
ACL on PCD loans acquired | 12 | 13 | |||
Provision for credit losses | 517 | 237 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 9 | 4 | |||
Net (charge-offs) recoveries | 9 | 4 | |||
Ending balance | 1,878 | $ 1,878 | $ 1,340 | ||
As % of ACL-Loans | 3% | 3% | |||
Residential | Residential construction | |||||
ACL-Loans | |||||
Beginning balance | $ 900 | $ 421 | $ 421 | ||
ACL on PCD loans acquired | 0 | 0 | |||
Provision for credit losses | 446 | 479 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Net (charge-offs) recoveries | 0 | 0 | |||
Ending balance | $ 1,346 | $ 1,346 | $ 900 | ||
As % of ACL-Loans | 2% | 2% |
Loans, Allowance for Credit L_7
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Provision for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Receivables [Abstract] | |||||
Loans | $ 8,200 | $ 4,000 | $ 9,100 | $ 4,500 | $ 12,500 |
Unfunded Commitments | 400 | 2,000 | 550 | 2,000 | 2,400 |
Investment securities | 0 | 0 | 0 | 0 | 0 |
Total | $ 8,600 | $ 6,000 | $ 9,650 | $ 6,500 | $ 14,900 |
Loans, Allowance for Credit L_8
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Collateral dependent loans by portfolio segment (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | $ 31,622 | $ 38,499 |
Without an Allowance | 23,049 | 31,279 |
With an Allowance | 8,573 | 7,220 |
Allowance Allocation | 1,405 | 2,269 |
Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 22,151 | 27,685 |
Other Business Assets | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 9,471 | 10,814 |
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 | 3,032 | 2,296 |
Without an Allowance | 1,443 | 1,842 |
With an Allowance | 1,589 | 454 |
Allowance Allocation | 661 | 258 |
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 | 3,032 | 2,296 |
Commercial | Owner-occupied CRE | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 5,205 | 3,537 |
Without an Allowance | 3,526 | 1,315 |
With an Allowance | 1,679 | 2,222 |
Allowance Allocation | 297 | 552 |
Commercial | Owner-occupied CRE | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 5,205 | 3,537 |
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 | 20,413 | 28,155 |
Without an Allowance | 16,900 | 25,310 |
With an Allowance | 3,513 | 2,845 |
Allowance Allocation | 205 | 841 |
Commercial | Agricultural | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 13,974 | 19,637 |
Commercial | Agricultural | Other Business Assets | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 6,439 | 8,518 |
Commercial real estate | CRE investment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 2,196 | 3,000 |
Without an Allowance | 404 | 1,684 |
With an Allowance | 1,792 | 1,316 |
Allowance Allocation | 242 | 407 |
Commercial real estate | CRE investment | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 2,196 | 3,000 |
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 | 685 | 1,038 |
Without an Allowance | 685 | 655 |
With an Allowance | 0 | 383 |
Allowance Allocation | 0 | 211 |
Commercial real estate | Construction & land development | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 685 | 1,038 |
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 | 91 | 473 |
Without an Allowance | 91 | 473 |
With an Allowance | 0 | 0 |
Allowance Allocation | 0 | 0 |
Residential | Residential first mortgage | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 91 | 473 |
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 | 0 | 0 |
Without an Allowance | 0 | 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 | 0 | 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_9
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Summary of loans by past due status (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 5,984,437 | $ 4,621,836 |
Percent of total loans | 100% | 100% |
30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 4,059 | $ 3,292 |
Percent past due | 0.10% | 0.10% |
90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 38,326 | $ 44,154 |
Percent past due | 0.60% | 0.90% |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 5,942,052 | $ 4,574,390 |
Percent of current loans | 99.30% | 99% |
Retail & other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 56,259 | $ 50,807 |
Retail & other | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 138 | 115 |
Retail & other | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 99 | 94 |
Retail & other | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 56,022 | 50,598 |
Commercial | Commercial & industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,268,252 | 1,042,256 |
Commercial | Commercial & industrial | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 954 | 94 |
Commercial | Commercial & industrial | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 3,052 | 1,908 |
Commercial | Commercial & industrial | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,264,246 | 1,040,254 |
Commercial | Owner-occupied CRE | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 954,933 | 787,189 |
Commercial | Owner-occupied CRE | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 513 | 0 |
Commercial | Owner-occupied CRE | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 5,806 | 4,220 |
Commercial | Owner-occupied CRE | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 948,614 | 782,969 |
Commercial | Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,017,498 | 794,728 |
Commercial | Agricultural | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 108 |
Commercial | Agricultural | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 20,646 | 28,367 |
Commercial | Agricultural | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 996,852 | 766,253 |
Commercial real estate | CRE investment | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,132,951 | 818,061 |
Commercial real estate | CRE investment | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 27 | 114 |
Commercial real estate | CRE investment | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 3,343 | 4,119 |
Commercial real estate | CRE investment | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,129,581 | 813,828 |
Commercial real estate | Construction & land development | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 306,446 | 213,035 |
Commercial real estate | Construction & land development | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Commercial real estate | Construction & land development | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 794 | 1,071 |
Commercial real estate | Construction & land development | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 305,652 | 211,964 |
Residential | Residential first mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 970,384 | 713,983 |
Residential | Residential first mortgage | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,621 | 2,592 |
Residential | Residential first mortgage | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 4,309 | 4,132 |
Residential | Residential first mortgage | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 964,454 | 707,259 |
Residential | Residential junior mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 176,428 | 131,424 |
Residential | Residential junior mortgage | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 249 | 23 |
Residential | Residential junior mortgage | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 277 | 243 |
Residential | Residential junior mortgage | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 175,902 | 131,158 |
Residential | Residential construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 101,286 | 70,353 |
Residential | Residential construction | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 557 | 246 |
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 | $ 100,729 | $ 70,107 |
Loans, Allowance for Credit _10
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Nonaccrual loans by portfolio segment (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 38,326 | $ 44,154 |
Percent of total loans | 0.60% | 0.90% |
% of Total | 100% | 100% |
Retail & other | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 99 | $ 94 |
% of Total | 0% | 0% |
Commercial | Commercial & industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 3,052 | $ 1,908 |
% of Total | 8% | 4% |
Commercial | Owner-occupied CRE | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 5,806 | $ 4,220 |
% of Total | 15% | 10% |
Commercial | Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 20,646 | $ 28,367 |
% of Total | 54% | 64% |
Commercial real estate | CRE investment | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 3,343 | $ 4,119 |
% of Total | 9% | 9% |
Commercial real estate | Construction & land development | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 794 | $ 1,071 |
% of Total | 2% | 3% |
Residential | Residential first mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 4,309 | $ 4,132 |
% of Total | 11% | 9% |
Residential | Residential junior mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 277 | $ 243 |
% of Total | 1% | 1% |
Residential | Residential construction | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 0 | $ 0 |
% of Total | 0% | 0% |
Loans, Allowance for Credit _11
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Summary of loans by loan risk categories (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | $ 1,246,029 | $ 1,211,408 |
2021/2020 | 1,310,082 | 733,060 |
2020/2019 | 721,919 | 592,366 |
2019/2018 | 463,319 | 306,359 |
2018/2017 | 329,121 | 283,629 |
Prior | 1,102,946 | 771,550 |
Revolving | 805,725 | 722,034 |
Revolving to Term | 5,296 | 1,430 |
Loans | $ 5,984,437 | $ 4,621,836 |
Percent of total | 100% | 100% |
Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 5,622,985 | $ 4,294,134 |
Percent of total | 93.90% | 92.90% |
Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 230,584 | $ 224,741 |
Percent of total | 3.90% | 4.90% |
Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 46,102 | $ 5,703 |
Percent of total | 0.80% | 0.10% |
Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 84,766 | $ 97,258 |
Percent of total | 1.40% | 2.10% |
Retail & other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | $ 11,363 | $ 13,676 |
2021/2020 | 9,873 | 6,910 |
2020/2019 | 4,767 | 5,828 |
2019/2018 | 3,679 | 2,072 |
2018/2017 | 1,250 | 1,882 |
Prior | 24,660 | 20,164 |
Revolving | 667 | 275 |
Revolving to Term | 0 | 0 |
Loans | 56,259 | 50,807 |
Retail & other | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 11,363 | 13,676 |
2021/2020 | 9,873 | 6,886 |
2020/2019 | 4,751 | 5,826 |
2019/2018 | 3,677 | 2,053 |
2018/2017 | 1,220 | 1,882 |
Prior | 24,608 | 20,102 |
Revolving | 667 | 275 |
Revolving to Term | 0 | 0 |
Loans | 56,159 | 50,700 |
Retail & other | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 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] | ||
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 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] | ||
2022/2021 | 0 | 0 |
2021/2020 | 0 | 24 |
2020/2019 | 16 | 2 |
2019/2018 | 2 | 19 |
2018/2017 | 30 | 0 |
Prior | 52 | 62 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 100 | 107 |
Commercial | Commercial & industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 262,610 | 284,652 |
2021/2020 | 255,619 | 148,530 |
2020/2019 | 123,529 | 104,779 |
2019/2018 | 81,743 | 76,311 |
2018/2017 | 56,088 | 56,460 |
Prior | 100,806 | 74,178 |
Revolving | 387,857 | 297,346 |
Revolving to Term | 0 | 0 |
Loans | 1,268,252 | 1,042,256 |
Commercial | Commercial & industrial | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 254,713 | 282,369 |
2021/2020 | 246,195 | 146,131 |
2020/2019 | 108,418 | 99,702 |
2019/2018 | 76,355 | 69,478 |
2018/2017 | 52,099 | 50,557 |
Prior | 83,341 | 71,247 |
Revolving | 349,324 | 288,115 |
Revolving to Term | 0 | 0 |
Loans | 1,170,445 | 1,007,599 |
Commercial | Commercial & industrial | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 7,187 | 1,685 |
2021/2020 | 7,423 | 1,905 |
2020/2019 | 11,052 | 4,369 |
2019/2018 | 2,084 | 5,809 |
2018/2017 | 2,734 | 4,860 |
Prior | 4,344 | 2,097 |
Revolving | 18,807 | 8,408 |
Revolving to Term | 0 | 0 |
Loans | 53,631 | 29,133 |
Commercial | Commercial & industrial | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 158 | 598 |
2021/2020 | 1,649 | 54 |
2020/2019 | 675 | 16 |
2019/2018 | 638 | 687 |
2018/2017 | 453 | 67 |
Prior | 11,972 | 91 |
Revolving | 14,718 | 391 |
Revolving to Term | 0 | 0 |
Loans | 30,263 | 1,904 |
Commercial | Commercial & industrial | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 552 | 0 |
2021/2020 | 352 | 440 |
2020/2019 | 3,384 | 692 |
2019/2018 | 2,666 | 337 |
2018/2017 | 802 | 976 |
Prior | 1,149 | 743 |
Revolving | 5,008 | 432 |
Revolving to Term | 0 | 0 |
Loans | 13,913 | 3,620 |
Commercial | Owner-occupied CRE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 131,362 | 162,331 |
2021/2020 | 195,086 | 100,443 |
2020/2019 | 120,690 | 115,311 |
2019/2018 | 110,431 | 94,671 |
2018/2017 | 97,579 | 81,644 |
Prior | 291,661 | 224,198 |
Revolving | 8,124 | 8,591 |
Revolving to Term | 0 | 0 |
Loans | 954,933 | 787,189 |
Commercial | Owner-occupied CRE | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 128,054 | 154,578 |
2021/2020 | 189,922 | 94,300 |
2020/2019 | 111,622 | 105,226 |
2019/2018 | 104,840 | 92,128 |
2018/2017 | 93,619 | 75,583 |
Prior | 269,617 | 202,816 |
Revolving | 7,952 | 6,945 |
Revolving to Term | 0 | 0 |
Loans | 905,626 | 731,576 |
Commercial | Owner-occupied CRE | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 2,868 | 7,753 |
2021/2020 | 4,750 | 3,019 |
2020/2019 | 2,824 | 6,529 |
2019/2018 | 2,826 | 2,543 |
2018/2017 | 3,875 | 2,515 |
Prior | 14,325 | 13,905 |
Revolving | 172 | 656 |
Revolving to Term | 0 | 0 |
Loans | 31,640 | 36,920 |
Commercial | Owner-occupied CRE | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 1,642 |
2019/2018 | 2,388 | 0 |
2018/2017 | 0 | 20 |
Prior | 887 | 805 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 3,275 | 2,467 |
Commercial | Owner-occupied CRE | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 440 | 0 |
2021/2020 | 414 | 3,124 |
2020/2019 | 6,244 | 1,914 |
2019/2018 | 377 | 0 |
2018/2017 | 85 | 3,526 |
Prior | 6,832 | 6,672 |
Revolving | 0 | 990 |
Revolving to Term | 0 | 0 |
Loans | 14,392 | 16,226 |
Commercial | Agricultural | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 257,617 | 146,522 |
2021/2020 | 174,031 | 96,036 |
2020/2019 | 97,246 | 34,333 |
2019/2018 | 30,270 | 28,003 |
2018/2017 | 26,126 | 47,511 |
Prior | 203,697 | 167,198 |
Revolving | 228,511 | 275,125 |
Revolving to Term | 0 | 0 |
Loans | 1,017,498 | 794,728 |
Commercial | Agricultural | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 238,387 | 128,404 |
2021/2020 | 154,364 | 87,844 |
2020/2019 | 93,529 | 28,416 |
2019/2018 | 26,185 | 22,887 |
2018/2017 | 20,967 | 36,298 |
Prior | 135,426 | 86,104 |
Revolving | 195,784 | 235,743 |
Revolving to Term | 0 | 0 |
Loans | 864,642 | 625,696 |
Commercial | Agricultural | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 12,109 | 14,796 |
2021/2020 | 15,525 | 4,183 |
2020/2019 | 2,823 | 2,391 |
2019/2018 | 2,028 | 915 |
2018/2017 | 1,504 | 3,912 |
Prior | 42,561 | 48,373 |
Revolving | 23,090 | 26,778 |
Revolving to Term | 0 | 0 |
Loans | 99,640 | 101,348 |
Commercial | Agricultural | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 49 | 38 |
2021/2020 | 1,491 | 38 |
2020/2019 | 31 | 36 |
2019/2018 | 33 | 0 |
2018/2017 | 0 | 86 |
Prior | 5,322 | 1,049 |
Revolving | 425 | 85 |
Revolving to Term | 0 | 0 |
Loans | 7,351 | 1,332 |
Commercial | Agricultural | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 7,072 | 3,284 |
2021/2020 | 2,651 | 3,971 |
2020/2019 | 863 | 3,490 |
2019/2018 | 2,024 | 4,201 |
2018/2017 | 3,655 | 7,215 |
Prior | 20,388 | 31,672 |
Revolving | 9,212 | 12,519 |
Revolving to Term | 0 | 0 |
Loans | 45,865 | 66,352 |
Commercial real estate | CRE investment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 168,715 | 203,355 |
2021/2020 | 230,373 | 142,128 |
2020/2019 | 200,272 | 143,259 |
2019/2018 | 146,136 | 60,234 |
2018/2017 | 83,051 | 73,104 |
Prior | 290,093 | 184,461 |
Revolving | 14,311 | 11,520 |
Revolving to Term | 0 | 0 |
Loans | 1,132,951 | 818,061 |
Commercial real estate | CRE investment | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 167,931 | 192,274 |
2021/2020 | 228,709 | 139,127 |
2020/2019 | 195,020 | 136,306 |
2019/2018 | 141,749 | 56,148 |
2018/2017 | 79,790 | 65,026 |
Prior | 261,027 | 162,991 |
Revolving | 13,890 | 11,289 |
Revolving to Term | 0 | 0 |
Loans | 1,088,116 | 763,161 |
Commercial real estate | CRE investment | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 784 | 11,081 |
2021/2020 | 1,664 | 3,001 |
2020/2019 | 5,252 | 6,497 |
2019/2018 | 3,131 | 3,945 |
2018/2017 | 983 | 6,726 |
Prior | 24,997 | 17,527 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 36,811 | 48,777 |
Commercial real estate | CRE investment | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 1,183 | 0 |
2018/2017 | 2,029 | 0 |
Prior | 1,078 | 0 |
Revolving | 206 | 0 |
Revolving to Term | 0 | 0 |
Loans | 4,496 | 0 |
Commercial real estate | CRE investment | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 456 |
2019/2018 | 73 | 141 |
2018/2017 | 249 | 1,352 |
Prior | 2,991 | 3,943 |
Revolving | 215 | 231 |
Revolving to Term | 0 | 0 |
Loans | 3,528 | 6,123 |
Commercial real estate | Construction & land development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 82,769 | 82,531 |
2021/2020 | 139,561 | 72,415 |
2020/2019 | 15,958 | 13,068 |
2019/2018 | 10,492 | 20,430 |
2018/2017 | 27,553 | 1,201 |
Prior | 15,752 | 12,447 |
Revolving | 14,361 | 10,943 |
Revolving to Term | 0 | 0 |
Loans | 306,446 | 213,035 |
Commercial real estate | Construction & land development | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 82,695 | 81,891 |
2021/2020 | 139,561 | 72,415 |
2020/2019 | 15,958 | 12,547 |
2019/2018 | 9,979 | 19,511 |
2018/2017 | 27,553 | 1,184 |
Prior | 14,936 | 11,274 |
Revolving | 14,361 | 10,943 |
Revolving to Term | 0 | 0 |
Loans | 305,043 | 209,765 |
Commercial real estate | Construction & land development | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 40 | 640 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 521 |
2019/2018 | 513 | 919 |
2018/2017 | 0 | 0 |
Prior | 22 | 119 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 575 | 2,199 |
Commercial real estate | Construction & land development | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 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] | ||
2022/2021 | 34 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 0 | 17 |
Prior | 794 | 1,054 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 828 | 1,071 |
Residential | Residential first mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 262,463 | 256,795 |
2021/2020 | 268,146 | 153,461 |
2020/2019 | 152,653 | 172,359 |
2019/2018 | 77,189 | 22,793 |
2018/2017 | 35,391 | 20,220 |
Prior | 171,944 | 86,511 |
Revolving | 2,595 | 1,840 |
Revolving to Term | 3 | 4 |
Loans | 970,384 | 713,983 |
Residential | Residential first mortgage | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 261,535 | 256,082 |
2021/2020 | 266,465 | 152,932 |
2020/2019 | 151,436 | 168,705 |
2019/2018 | 73,915 | 22,568 |
2018/2017 | 32,871 | 20,147 |
Prior | 167,038 | 82,479 |
Revolving | 2,595 | 1,840 |
Revolving to Term | 3 | 4 |
Loans | 955,858 | 704,757 |
Residential | Residential first mortgage | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 928 | 713 |
2021/2020 | 1,349 | 529 |
2020/2019 | 1,006 | 3,094 |
2019/2018 | 2,147 | 0 |
2018/2017 | 2,295 | 0 |
Prior | 418 | 1,508 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 8,143 | 5,844 |
Residential | Residential first mortgage | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 717 | 0 |
2018/2017 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 717 | 0 |
Residential | Residential first mortgage | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 0 | 0 |
2021/2020 | 332 | 0 |
2020/2019 | 211 | 560 |
2019/2018 | 410 | 225 |
2018/2017 | 225 | 73 |
Prior | 4,488 | 2,524 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 5,666 | 3,382 |
Residential | Residential junior mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 7,864 | 3,194 |
2021/2020 | 5,084 | 3,139 |
2020/2019 | 5,314 | 3,222 |
2019/2018 | 3,254 | 1,501 |
2018/2017 | 1,745 | 535 |
Prior | 3,669 | 2,013 |
Revolving | 144,205 | 116,394 |
Revolving to Term | 5,293 | 1,426 |
Loans | 176,428 | 131,424 |
Residential | Residential junior mortgage | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 7,864 | 3,194 |
2021/2020 | 4,875 | 3,139 |
2020/2019 | 5,314 | 3,021 |
2019/2018 | 3,227 | 1,501 |
2018/2017 | 1,745 | 512 |
Prior | 3,439 | 1,969 |
Revolving | 144,053 | 115,817 |
Revolving to Term | 5,293 | 1,426 |
Loans | 175,810 | 130,579 |
Residential | Residential junior mortgage | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 29 |
2019/2018 | 0 | 0 |
2018/2017 | 0 | 0 |
Prior | 144 | 0 |
Revolving | 0 | 439 |
Revolving to Term | 0 | 0 |
Loans | 144 | 468 |
Residential | Residential junior mortgage | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 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] | ||
2022/2021 | 0 | 0 |
2021/2020 | 209 | 0 |
2020/2019 | 0 | 172 |
2019/2018 | 27 | 0 |
2018/2017 | 0 | 23 |
Prior | 86 | 44 |
Revolving | 152 | 138 |
Revolving to Term | 0 | 0 |
Loans | 474 | 377 |
Residential | Residential construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 61,266 | 58,352 |
2021/2020 | 32,309 | 9,998 |
2020/2019 | 1,490 | 207 |
2019/2018 | 125 | 344 |
2018/2017 | 338 | 1,072 |
Prior | 664 | 380 |
Revolving | 5,094 | 0 |
Revolving to Term | 0 | 0 |
Loans | 101,286 | 70,353 |
Residential | Residential construction | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 61,266 | 58,352 |
2021/2020 | 32,309 | 9,998 |
2020/2019 | 1,490 | 155 |
2019/2018 | 125 | 344 |
2018/2017 | 338 | 1,072 |
Prior | 664 | 380 |
Revolving | 5,094 | 0 |
Revolving to Term | 0 | 0 |
Loans | 101,286 | 70,301 |
Residential | Residential construction | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 52 |
2019/2018 | 0 | 0 |
2018/2017 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 0 | 52 |
Residential | Residential construction | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 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] | ||
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | $ 0 | $ 0 |
Loans, Allowance for Credit _12
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Trouble Debt Restructuring (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | $ 17,430 | $ 25,686 |
Number of loans classified as troubled debt | loan | 36 | 44 |
Pre-modification balance | $ 22,466 | $ 26,890 |
Troubled debt restructuring current outstanding balance | 17,430 | 25,686 |
Performing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 0 | 5,443 |
Nonaccrual | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 17,430 | 20,243 |
Commercial | Commercial & industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | $ 223 | $ 197 |
Number of loans classified as troubled debt | loan | 4 | 2 |
Pre-modification balance | $ 240 | $ 200 |
Troubled debt restructuring current outstanding balance | 223 | 197 |
Commercial | Commercial & industrial | Performing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 0 | 0 |
Commercial | Commercial & industrial | Nonaccrual | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 223 | 197 |
Commercial | Owner-occupied CRE | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | $ 2,639 | $ 6,354 |
Number of loans classified as troubled debt | loan | 3 | 6 |
Pre-modification balance | $ 5,138 | $ 6,913 |
Troubled debt restructuring current outstanding balance | 2,639 | 6,354 |
Commercial | Owner-occupied CRE | Performing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 0 | 3,466 |
Commercial | Owner-occupied CRE | Nonaccrual | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 2,639 | 2,888 |
Commercial | Agricultural | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | $ 14,181 | $ 16,835 |
Number of loans classified as troubled debt | loan | 26 | 31 |
Pre-modification balance | $ 16,237 | $ 17,228 |
Troubled debt restructuring current outstanding balance | 14,181 | 16,835 |
Commercial | Agricultural | Performing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 0 | 0 |
Commercial | Agricultural | Nonaccrual | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 14,181 | 16,835 |
Commercial real estate | CRE investment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | $ 299 | $ 918 |
Number of loans classified as troubled debt | loan | 1 | 1 |
Pre-modification balance | $ 301 | $ 919 |
Troubled debt restructuring current outstanding balance | 299 | 918 |
Commercial real estate | CRE investment | Performing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 0 | 918 |
Commercial real estate | CRE investment | Nonaccrual | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 299 | 0 |
Commercial real estate | Construction & land development | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | $ 75 | $ 308 |
Number of loans classified as troubled debt | loan | 1 | 1 |
Pre-modification balance | $ 533 | $ 533 |
Troubled debt restructuring current outstanding balance | 75 | 308 |
Commercial real estate | Construction & land development | Performing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 0 | 0 |
Commercial real estate | Construction & land development | Nonaccrual | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 75 | 308 |
Residential | Residential first mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | $ 13 | $ 928 |
Number of loans classified as troubled debt | loan | 1 | 2 |
Pre-modification balance | $ 17 | $ 931 |
Troubled debt restructuring current outstanding balance | 13 | 928 |
Residential | Residential first mortgage | Performing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 0 | 913 |
Residential | Residential first mortgage | Nonaccrual | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 13 | 15 |
Residential | Residential junior mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | $ 0 | $ 146 |
Number of loans classified as troubled debt | loan | 0 | 1 |
Pre-modification balance | $ 0 | $ 166 |
Troubled debt restructuring current outstanding balance | 0 | 146 |
Residential | Residential junior mortgage | Performing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 0 | 146 |
Residential | Residential junior mortgage | Nonaccrual | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | $ 0 | $ 0 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles and Servicing Rights - Goodwill and other intangibles (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 369,849 | $ 317,189 | $ 163,151 |
Other intangibles | 37,268 | 22,303 | |
Goodwill and other intangibles, net | 407,117 | 339,492 | |
Core deposit intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangibles | 34,791 | 19,445 | |
Customer list intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangibles | $ 2,477 | $ 2,858 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles and Servicing Rights - Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Goodwill: | ||
Goodwill at beginning of year | $ 317,189 | $ 163,151 |
Acquisitions | 52,660 | 154,038 |
Goodwill at end of period | $ 369,849 | $ 317,189 |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles and Servicing Rights - Other intangible assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Net book value | $ 37,268 | $ 37,268 | $ 22,303 | ||
Amortization during the period | 1,628 | $ 758 | 4,399 | $ 2,400 | |
Core deposit intangibles: | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 60,724 | 60,724 | 41,360 | ||
Accumulated amortization | (25,933) | (25,933) | (21,915) | ||
Net book value | 34,791 | 34,791 | 19,445 | ||
Additions during the period | 19,364 | 13,595 | |||
Amortization during the period | 4,018 | 2,987 | |||
Customer list intangibles: | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 5,523 | 5,523 | 5,523 | ||
Accumulated amortization | (3,046) | (3,046) | (2,665) | ||
Net book value | $ 2,477 | 2,477 | 2,858 | ||
Amortization during the period | $ 381 | $ 507 |
Goodwill and Other Intangible_6
Goodwill and Other Intangibles and Servicing Rights - Mortgage servicing rights (Details) - Mortgage Servicing Rights - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Mortgage servicing rights asset: | ||
MSR asset at beginning of year | $ 13,636 | $ 10,230 |
Capitalized MSR | 2,127 | 4,329 |
MSR asset acquired | 0 | 1,322 |
Amortization during the period | (2,145) | (2,245) |
MSR asset at end of period | 13,618 | 13,636 |
Valuation Allowance: | ||
Valuation allowance at beginning of year | (1,200) | (1,000) |
Additions | 0 | (500) |
Reversals | 700 | 300 |
Valuation allowance at end of period | (500) | (1,200) |
MSR asset, net | 13,118 | 12,436 |
Fair value of MSR asset at end of period | 16,740 | 15,599 |
Residential mortgage loans serviced for others | $ 1,649,187 | $ 1,583,577 |
Net book value of MSR asset to loans serviced for others | 0.80% | 0.79% |
Goodwill and Other Intangible_7
Goodwill and Other Intangibles and Servicing Rights - Narrative (Details) - LSR asset $ in Millions | Sep. 30, 2022 USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Servicing asset | $ 13 |
Loans serviced for others | $ 553 |
Goodwill and Other Intangible_8
Goodwill and Other Intangibles and Servicing Rights - Estimated future amortization expense (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Net book value | $ 37,268 | $ 22,303 |
Core deposit intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
2022 (remaining three months) | 2,091 | |
2023 | 7,589 | |
2024 | 6,298 | |
2025 | 5,161 | |
2026 | 3,983 | |
2027 | 3,218 | |
Thereafter | 6,451 | |
Net book value | 34,791 | 19,445 |
Customer list intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
2022 (remaining three months) | 126 | |
2023 | 483 | |
2024 | 449 | |
2025 | 449 | |
2026 | 249 | |
2027 | 166 | |
Thereafter | 555 | |
Net book value | 2,477 | $ 2,858 |
MSR asset | ||
Finite-Lived Intangible Assets [Line Items] | ||
2022 (remaining three months) | 386 | |
2023 | 2,735 | |
2024 | 2,635 | |
2025 | 1,884 | |
2026 | 1,394 | |
2027 | 1,394 | |
Thereafter | 3,190 | |
Net book value | 13,618 | |
LSR asset | ||
Finite-Lived Intangible Assets [Line Items] | ||
2022 (remaining three months) | 2,004 | |
2023 | 6,345 | |
2024 | 3,673 | |
2025 | 1,020 | |
2026 | 0 | |
2027 | 0 | |
Thereafter | 0 | |
Net book value | $ 13,042 |
Short and Long-Term Borrowing_2
Short and Long-Term Borrowings - Narrative (Details) | 1 Months Ended | 24 Months Ended | 48 Months Ended | 60 Months Ended | ||
Dec. 31, 2021 USD ($) note | Dec. 31, 2028 | Dec. 31, 2030 | Jul. 15, 2031 | Sep. 30, 2022 USD ($) | Jul. 31, 2021 USD ($) | |
Debt Instrument | ||||||
Short-term borrowings | $ 0 | $ 280,000,000 | ||||
Trust preferred securities qualify as Tier 1 capital | $ 37,000,000 | $ 38,000,000 | ||||
FHLB advances | ||||||
Debt Instrument | ||||||
FHLB weighted average interest rate at period end | 0.59% | 1.09% | ||||
Subordinated notes | ||||||
Debt Instrument | ||||||
Number of notes assumed | note | 2 | |||||
Face amount issued | $ 152,400,000 | |||||
Subordinated Notes due 2031 | Subordinated notes | ||||||
Debt Instrument | ||||||
Face amount issued | 100,000,000 | $ 100,000,000 | ||||
Subordinated Notes due 2031 | Subordinated notes | Interest Rate For The Years One Through 5 | ||||||
Debt Instrument | ||||||
Fixed interest rate | 3.125% | |||||
Subordinated Notes due 2031 | Subordinated notes | SOFR | Forecast | Interest Rate After Year Five | ||||||
Debt Instrument | ||||||
Floating interest rate basis spread | 2.375% | |||||
County Subordinated Notes due 2028 | Subordinated notes | ||||||
Debt Instrument | ||||||
Face amount issued | $ 30,000,000 | 30,000,000 | ||||
County Subordinated Notes due 2028 | Subordinated notes | Interest Rate For The Years One Through 5 | ||||||
Debt Instrument | ||||||
Fixed interest rate | 5.875% | |||||
County Subordinated Notes due 2028 | Subordinated notes | London Interbank Offered Rate (LIBOR) | Forecast | Interest Rate After Year Five | ||||||
Debt Instrument | ||||||
Floating interest rate basis spread | 2.88% | |||||
County Subordinated Notes due 2030 | Subordinated notes | ||||||
Debt Instrument | ||||||
Face amount issued | $ 22,000,000 | 22,400,000 | ||||
County Subordinated Notes due 2030 | Subordinated notes | Interest Rate For The Years One Through 5 | ||||||
Debt Instrument | ||||||
Fixed interest rate | 7% | |||||
County Subordinated Notes due 2030 | Subordinated notes | SOFR | Forecast | Interest Rate After Year Five | ||||||
Debt Instrument | ||||||
Floating interest rate basis spread | 6.875% | |||||
FHLB advances | ||||||
Debt Instrument | ||||||
Short-term borrowings | 280,000,000 | |||||
FHLB advances | Maturing October 2022 | ||||||
Debt Instrument | ||||||
Short-term borrowings | $ 80,000,000 | |||||
Weighted average interest rate on short-term debt | 2.70% | |||||
FHLB advances | Maturing September 2023 | ||||||
Debt Instrument | ||||||
Short-term borrowings | $ 200,000,000 | |||||
Weighted average interest rate on short-term debt | 4.30% |
Short and Long-Term Borrowing_3
Short and Long-Term Borrowings - Long-term Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument | ||
Long-term borrowings | $ 225,236 | $ 216,915 |
FHLB advances | ||
Debt Instrument | ||
Long-term borrowings | 33,000 | 25,000 |
Junior subordinated debentures | ||
Debt Instrument | ||
Long-term borrowings | 39,512 | 38,885 |
Subordinated notes | ||
Debt Instrument | ||
Long-term borrowings | $ 152,724 | $ 153,030 |
Short and Long-Term Borrowing_4
Short and Long-Term Borrowings - Junior Subordinated Debentures (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2021 | Jul. 31, 2021 | |
Debt Instrument [Line Items] | |||
Carrying Value | $ 225,236,000 | $ 216,915,000 | |
Junior subordinated debentures | |||
Debt Instrument [Line Items] | |||
Par | 48,045,000 | ||
Unamortized Premium /(Discount) / Debt Issue Costs | (8,533,000) | ||
Carrying Value | $ 39,512,000 | $ 38,885,000 | |
Junior subordinated debentures | 2005 Mid-Wisconsin Financial Services, Inc. | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.72% | 1.63% | |
Par | $ 10,310,000 | ||
Unamortized Premium /(Discount) / Debt Issue Costs | (2,625,000) | ||
Carrying Value | $ 7,685,000 | $ 7,537,000 | |
Junior subordinated debentures | 2006 Baylake Corp. | |||
Debt Instrument [Line Items] | |||
Interest Rate | 5.02% | 1.57% | |
Par | $ 16,598,000 | ||
Unamortized Premium /(Discount) / Debt Issue Costs | (3,233,000) | ||
Carrying Value | $ 13,365,000 | $ 13,187,000 | |
Junior subordinated debentures | 2004 First Menasha Bancshares, Inc. | |||
Debt Instrument [Line Items] | |||
Interest Rate | 6.32% | 3.01% | |
Par | $ 5,155,000 | ||
Unamortized Premium /(Discount) / Debt Issue Costs | (498,000) | ||
Carrying Value | $ 4,657,000 | $ 4,624,000 | |
Junior subordinated debentures | County Bancorp Statutory Trust II | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.82% | 1.73% | |
Par | $ 6,186,000 | ||
Unamortized Premium /(Discount) / Debt Issue Costs | (948,000) | ||
Carrying Value | $ 5,238,000 | $ 5,061,000 | |
Junior subordinated debentures | County Bancorp Statutory Trust III | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.98% | 1.89% | |
Par | $ 6,186,000 | ||
Unamortized Premium /(Discount) / Debt Issue Costs | (1,006,000) | ||
Carrying Value | $ 5,180,000 | $ 5,121,000 | |
Junior subordinated debentures | Fox River Valley Capital Trust | |||
Debt Instrument [Line Items] | |||
Interest Rate | 6.40% | 6.40% | |
Par | $ 3,610,000 | ||
Unamortized Premium /(Discount) / Debt Issue Costs | (223,000) | ||
Carrying Value | $ 3,387,000 | $ 3,355,000 | |
Junior subordinated debentures | London Interbank Offered Rate (LIBOR) | 2005 Mid-Wisconsin Financial Services, Inc. | |||
Debt Instrument [Line Items] | |||
Floating interest rate basis spread | 1.43% | ||
Junior subordinated debentures | London Interbank Offered Rate (LIBOR) | 2006 Baylake Corp. | |||
Debt Instrument [Line Items] | |||
Floating interest rate basis spread | 1.35% | ||
Junior subordinated debentures | London Interbank Offered Rate (LIBOR) | 2004 First Menasha Bancshares, Inc. | |||
Debt Instrument [Line Items] | |||
Floating interest rate basis spread | 2.79% | ||
Junior subordinated debentures | London Interbank Offered Rate (LIBOR) | County Bancorp Statutory Trust II | |||
Debt Instrument [Line Items] | |||
Floating interest rate basis spread | 1.53% | ||
Junior subordinated debentures | London Interbank Offered Rate (LIBOR) | County Bancorp Statutory Trust III | |||
Debt Instrument [Line Items] | |||
Floating interest rate basis spread | 1.69% | ||
Junior subordinated debentures | London Interbank Offered Rate (LIBOR) | Fox River Valley Capital Trust | |||
Debt Instrument [Line Items] | |||
Floating interest rate basis spread | 3.40% | ||
Subordinated notes | |||
Debt Instrument [Line Items] | |||
Par | $ 152,400,000 | ||
Unamortized Premium /(Discount) / Debt Issue Costs | 324,000 | ||
Carrying Value | $ 152,724,000 | $ 153,030,000 | |
Subordinated notes | Subordinated Notes due 2031 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.13% | 3.13% | |
Par | $ 100,000,000 | $ 100,000,000 | |
Unamortized Premium /(Discount) / Debt Issue Costs | (785,000) | ||
Carrying Value | $ 99,215,000 | $ 99,057,000 | |
Subordinated notes | County Subordinated Notes due 2028 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 5.88% | 5.88% | |
Par | $ 30,000,000 | $ 30,000,000 | |
Unamortized Premium /(Discount) / Debt Issue Costs | 189,000 | ||
Carrying Value | $ 30,189,000 | $ 30,402,000 | |
Subordinated notes | County Subordinated Notes due 2030 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 7% | 7% | |
Par | $ 22,400,000 | $ 22,000,000 | |
Unamortized Premium /(Discount) / Debt Issue Costs | 920,000 | ||
Carrying Value | $ 23,320,000 | $ 23,571,000 |
Fair Value Measurements - Measu
Fair Value Measurements - Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | $ 949,597 | $ 921,661 |
U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 184,763 | 191,277 |
State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 411,864 | 312,737 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 213,435 | 271,262 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 139,535 | 146,385 |
Reccurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 949,597 | 921,661 |
Derivative assets | 0 | 1,064 |
Derivative liabilities | 0 | 1,064 |
Reccurring | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 184,763 | 191,277 |
Reccurring | State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 411,864 | 312,737 |
Reccurring | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 213,435 | 271,262 |
Reccurring | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 139,535 | 146,385 |
Reccurring | Other investments (equity securities) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments (equity securities) | 4,482 | 5,660 |
Reccurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Reccurring | Level 1 | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Reccurring | Level 1 | State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Reccurring | Level 1 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Reccurring | Level 1 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Reccurring | Level 1 | Other investments (equity securities) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments (equity securities) | 4,482 | 5,660 |
Reccurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 941,451 | 913,596 |
Derivative assets | 0 | 1,064 |
Derivative liabilities | 0 | 1,064 |
Reccurring | Level 2 | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 184,763 | 191,277 |
Reccurring | Level 2 | State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 410,021 | 310,316 |
Reccurring | Level 2 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 212,453 | 270,260 |
Reccurring | Level 2 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 134,214 | 141,743 |
Reccurring | 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 |
Reccurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 8,146 | 8,065 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Reccurring | Level 3 | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Reccurring | Level 3 | State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 1,843 | 2,421 |
Reccurring | Level 3 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 982 | 1,002 |
Reccurring | Level 3 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 5,321 | 4,642 |
Reccurring | Level 3 | Other investments (equity securities) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments (equity securities) | $ 0 | $ 0 |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Level 3 assets measured at fair value on a recurring basis (Details) - Securities AFS - Recurring - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Level 3 Fair Value Measurements: | ||
Balance at beginning of year | $ 8,065 | $ 3,130 |
Acquired balance | 750 | 4,935 |
Unrealized gain / (loss) | (227) | 0 |
Balance at end of period | 8,146 | 8,065 |
Level 3 | ||
Level 3 Fair Value Measurements: | ||
Maturities / Paydowns | $ (442) | $ 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 | Sep. 30, 2022 | Dec. 31, 2021 |
Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 30,217 | $ 36,230 |
Other real estate owned (“OREO”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 2,134 | 11,955 |
MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 13,118 | 12,436 |
LSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 13,042 | 20,055 |
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 1 | LSR 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 2 | LSR 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 | 30,217 | 36,230 |
Level 3 | Other real estate owned (“OREO”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 2,134 | 11,955 |
Level 3 | MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 13,118 | 12,436 |
Level 3 | LSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 13,042 | $ 20,055 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of carrying amounts and estimated fair values of financial instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financial assets: | ||
Securities AFS | $ 949,597 | $ 921,661 |
Securities HTM | 627,639 | 648,394 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 438,282 | 595,292 |
Certificates of deposit in other banks | 13,510 | 21,920 |
Securities AFS | 949,597 | 921,661 |
Securities HTM | 686,424 | 651,803 |
Other investments, including equity securities | 79,279 | 44,008 |
Loans held for sale | 3,709 | 6,447 |
Loans, net | 5,924,089 | 4,572,164 |
Accrued interest receivable | 21,542 | 15,277 |
Financial liabilities: | ||
Deposits | 7,395,902 | 6,465,916 |
Short-term borrowings | 280,000 | |
Long-term borrowings | 225,236 | 216,915 |
Accrued interest payable | 3,533 | 3,078 |
Carrying Amount | MSR asset | ||
Financial assets: | ||
Loan servicing rights | 13,118 | 12,436 |
Carrying Amount | LSR asset | ||
Financial assets: | ||
Loan servicing rights | 13,042 | 20,055 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 438,282 | 595,292 |
Certificates of deposit in other banks | 13,409 | 22,236 |
Securities AFS | 949,597 | 921,661 |
Securities HTM | 627,639 | 648,394 |
Other investments, including equity securities | 79,279 | 44,008 |
Loans held for sale | 3,770 | 6,616 |
Loans, net | 5,638,877 | 4,606,851 |
Accrued interest receivable | 21,542 | 15,277 |
Financial liabilities: | ||
Deposits | 7,390,443 | 6,463,064 |
Short-term borrowings | 280,000 | |
Long-term borrowings | 220,616 | 216,092 |
Accrued interest payable | 3,533 | 3,078 |
Estimated Fair Value | MSR asset | ||
Financial assets: | ||
Loan servicing rights | 16,740 | 15,599 |
Estimated Fair Value | LSR asset | ||
Financial assets: | ||
Loan servicing rights | 13,042 | 20,055 |
Estimated Fair Value | Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 438,282 | 595,292 |
Certificates of deposit in other banks | 0 | 0 |
Securities AFS | 0 | 0 |
Securities HTM | 0 | 0 |
Other investments, including equity securities | 4,482 | 5,660 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 21,542 | 15,277 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | |
Long-term borrowings | 0 | 0 |
Accrued interest payable | 3,533 | 3,078 |
Estimated Fair Value | Level 1 | MSR asset | ||
Financial assets: | ||
Loan servicing rights | 0 | 0 |
Estimated Fair Value | Level 1 | LSR asset | ||
Financial assets: | ||
Loan servicing rights | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposit in other banks | 13,409 | 22,236 |
Securities AFS | 941,451 | 913,596 |
Securities HTM | 627,639 | 648,394 |
Other investments, including equity securities | 58,910 | 32,110 |
Loans held for sale | 3,770 | 6,616 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Short-term borrowings | 280,000 | |
Long-term borrowings | 33,104 | 25,097 |
Accrued interest payable | 0 | 0 |
Estimated Fair Value | Level 2 | MSR asset | ||
Financial assets: | ||
Loan servicing rights | 0 | 0 |
Estimated Fair Value | Level 2 | LSR asset | ||
Financial assets: | ||
Loan servicing rights | 0 | 0 |
Estimated Fair Value | Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposit in other banks | 0 | 0 |
Securities AFS | 8,146 | 8,065 |
Securities HTM | 0 | 0 |
Other investments, including equity securities | 15,887 | 6,238 |
Loans held for sale | 0 | 0 |
Loans, net | 5,638,877 | 4,606,851 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Deposits | 7,390,443 | 6,463,064 |
Short-term borrowings | 0 | |
Long-term borrowings | 187,512 | 190,995 |
Accrued interest payable | 0 | 0 |
Estimated Fair Value | Level 3 | MSR asset | ||
Financial assets: | ||
Loan servicing rights | 16,740 | 15,599 |
Estimated Fair Value | Level 3 | LSR asset | ||
Financial assets: | ||
Loan servicing rights | $ 13,042 | $ 20,055 |
Other Assets and Other Liabil_2
Other Assets and Other Liabilities Held for Sale (Details) - Held-for-sale - Birmingham Sale $ in Millions | Dec. 31, 2021 USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Loans | $ 199 |
Deposits | $ 51 |