EXHIBIT 99.1
QUARTERLY REPORT TO SHAREHOLDERS
NICOLET
NATIONAL BANK
www.nicoletbank.com
800.369.0226
110 S. Washington Street
PO Box 23900
Green Bay, WI 54305-3900
920.430.1400
2009 Hall Avenue
Marinette, WI 54143
715.732.2600
1015 10th Avenue
Menominee, MI 49858
906.863.4407
MARCH 31, 2004
April 2004
Dear Shareholders:
We are pleased to provide the first quarter results for 2004. Net income of
$265,000 exceeded our plan and was modestly higher than the first quarter of
2003. The first half of 2003 was characterized by extremely strong revenues from
secondary market mortgage loan originations at Nicolet and throughout the
industry. These revenues remain strong, but the sources of 2004 earnings are
much more diverse than 2003. We continue to add high quality customer
relationships and deepen our involvement with existing customers.
On April 23rd we broke ground for our new Downtown Green Bay headquarters. The
building will be completed in August 2005, which coincides with the end of our
lease at our existing location. Nicolet will occupy the first two floors of the
four-story building. We are pleased and proud to participate in an important
step for Downtown Green Bay. Most importantly, the facility will provide the
right environment to continue the profitable growth of your bank.
The results and the comments from our customer base reflect a growing confidence
in general economic conditions. The environment remains uncertain, but reported
data, as well as the commentary of our commercial customers, points to a
favorable outlook.
Nicolet has attracted an outstanding base of quality relationships. We exist to
help our customers achieve their long-term financial goals, regardless of the
economic environment. We are confident that this focus will continue to drive
our success. Thank you for joining us in this effort.
Sincerely,
/s/ Robert B. Atwell
Robert B. Atwell
President & CEO
ASSETS (dollar amount in thousands)
- -------------------------------------------------------
Cash and balances due from
depository institutions . . . . . . . . . . . 31,625
Securities . . . . . . . . . . . . . . . . . . 27,330
Federal funds sold . . . . . . . . . . . . . . 1,076
Loans . . . . . . . . . . . . . . . . . . . . 295,917
LESS: Allowance for loan losses . . . . . . 3,466
Net loans . . . . . . . . . . . . . . . . . 292,451
Premises and fixed assets . . . . . . . . . . 2,785
Other assets . . . . . . . . . . . . . . . . . 12,034
TOTAL ASSETS . . . . . . . . . . . . . . . . . 367,301
LIABILITIES
- -------------------------------------------------------
Deposits
Non-interest-bearing . . . . . . . . . . . . 40,191
Interest-bearing . . . . . . . . . . . . . . 289,060
Total Deposits . . . . . . . . . . . . . . . . 329,251
Short term borrowings . . . . . . . . . . . . 4,160
Other liabilities . . . . . . . . . . . . . . 1,048
TOTAL LIABILITIES . . . . . . . . . . . . . . 334,459
EQUITY CAPITAL
- -------------------------------------------------------
Common Stock . . . . . . . . . . . . . . . . . 30
Surplus. . . . . . . . . . . . . . . . . . . . 32,105
Retained earnings. . . . . . . . . . . . . . . 189
Accumulated other comprehensive income . . . . 518
TOTAL EQUITY CAPITAL . . . . . . . . . . . . . 32,842
TOTAL LIABILITIES AND CAPITAL. . . . . . . . . 367,301
INCOME STATEMENT (dollar amount in thousands)
- -------------------------------------------------------
Interest Income . . . . . . . . . . . . . . . 4,008
Interest Expense . . . . . . . . . . . . . . . 1,717
Net interest Income . . . . . . . . . . . . . 2,291
Provision for Loan and Lease Losses . . . . . 763
Non-interest income
Income from fiduciary activities . . 226
Service charges on deposit accounts 123
Other non-interest income . . . . . 567
Total non-interest income . . . . . 916
Non-interest expense
Salaries and employee benefits . . . 1,148
Other non-interest expense . . . . . 932
Total non-interest expense . . . . . 2,080
Income before taxes . . . . . . . . . . . . . 364
Income Taxes . . . . . . . . . . . . . . . . . 99
Net Income . . . . . . . . . . . . . . . . . . 265