Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 27, 2020 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | NICOLET BANKSHARES INC | |
Entity Central Index Key | 0001174850 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding (in shares) | 10,412,885 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Emerging Growth Company | false | |
Entity Small Business Company | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | |
Assets | |||
Cash and due from banks | $ 53,741,000 | $ 75,433,000 | |
Interest-earning deposits | 188,219,000 | 106,626,000 | |
Cash and cash equivalents | 241,960,000 | [1] | 182,059,000 |
Certificates of deposit in other banks | 18,804,000 | 19,305,000 | |
Securities available for sale (“AFS”), at fair value | 511,860,000 | 449,302,000 | |
Other investments | 27,176,000 | 24,072,000 | |
Loans held for sale | 3,929,000 | 2,706,000 | |
Loans | 2,607,424,000 | 2,573,751,000 | |
Allowance for credit losses - loans (“ACL-Loans”) | (26,202,000) | (13,972,000) | |
Loans, net | 2,581,222,000 | 2,559,779,000 | |
Premises and equipment, net | 60,276,000 | 56,469,000 | |
Bank owned life insurance (“BOLI”) | 78,665,000 | 78,140,000 | |
Goodwill and other intangibles, net | 164,974,000 | 165,967,000 | |
Accrued interest receivable and other assets | 43,688,000 | 39,461,000 | |
Total assets | 3,732,554,000 | 3,577,260,000 | |
Liabilities: | |||
Noninterest-bearing demand deposits | 791,563,000 | 819,055,000 | |
Interest-bearing deposits | 2,231,903,000 | 2,135,398,000 | |
Total deposits | 3,023,466,000 | 2,954,453,000 | |
Short-term borrowings | 75,000,000 | 0 | |
Long-term borrowings | 82,741,000 | 67,629,000 | |
Accrued interest payable and other liabilities | 39,607,000 | 38,188,000 | |
Total liabilities | 3,220,814,000 | 3,060,270,000 | |
Stockholders’ Equity: | |||
Common stock | 104,000 | 106,000 | |
Additional paid-in capital | 299,903,000 | 312,733,000 | |
Retained earnings | 203,385,000 | 199,005,000 | |
Accumulated other comprehensive income (loss) | 7,579,000 | 4,418,000 | |
Total Nicolet Bankshares, Inc. stockholders’ equity | 510,971,000 | 516,262,000 | |
Noncontrolling interest | 769,000 | 728,000 | |
Total stockholders’ equity and noncontrolling interest | 511,740,000 | 516,990,000 | |
Total liabilities, noncontrolling interest and stockholders’ equity | $ 3,732,554,000 | $ 3,577,260,000 | |
Preferred shares authorized (no par value) (in shares) | 10,000,000 | 10,000,000 | |
Preferred shares issued and outstanding (in shares) | 0 | 0 | |
Common shares authorized (par value $0.01 per share) (in shares) | 30,000,000 | 30,000,000 | |
Common shares outstanding (in shares) | 10,408,375 | 10,587,738 | |
Common shares issued (in shares) | 10,428,896 | 10,610,259 | |
[1] | Cash and cash equivalents at March 31, 2020 include restricted cash of $1.9 million pledged as collateral on interest rate swaps and no reserve balance was required with the Federal Reserve Bank. At March 31, 2019, cash and cash equivalents include $9.0 million for the reserve balance required with the Federal Reserve Bank. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred shares, no par value (in dollars per share) | $ 0 | $ 0 |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest income: | ||
Loans, including loan fees | $ 33,778 | $ 29,968 |
Investment securities: | ||
Taxable | 2,072 | 1,633 |
Tax-exempt | 491 | 549 |
Other interest income | 662 | 1,009 |
Total interest income | 37,003 | 33,159 |
Interest expense: | ||
Deposits | 4,957 | 4,777 |
Short-term borrowings | 27 | 0 |
Long-term borrowings | 756 | 907 |
Total interest expense | 5,740 | 5,684 |
Net interest income | 31,263 | 27,475 |
Provision for credit losses | 3,000 | 200 |
Net interest income after provision for credit losses | 28,263 | 27,275 |
Noninterest income: | ||
Mortgage income, net | 2,327 | 1,203 |
BOLI income | 703 | 459 |
Asset gains (losses), net | (654) | 172 |
Other income | 521 | 1,484 |
Total noninterest income | 9,585 | 9,186 |
Noninterest expense: | ||
Personnel | 13,323 | 12,537 |
Occupancy, equipment and office | 4,204 | 3,750 |
Business development and marketing | 1,359 | 1,281 |
Data processing | 2,563 | 2,355 |
Intangibles amortization | 993 | 1,053 |
Other expense | 1,412 | 1,783 |
Total noninterest expense | 23,854 | 22,759 |
Income before income tax expense | 13,994 | 13,702 |
Income tax expense | 3,321 | 3,352 |
Net income | 10,673 | 10,350 |
Less: Net income attributable to noncontrolling interest | 118 | 83 |
Net income attributable to Nicolet Bankshares, Inc. | $ 10,555 | $ 10,267 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 1 | $ 1.09 |
Diluted (in dollars per share) | $ 0.98 | $ 1.05 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 10,515,778 | 9,461,485 |
Diluted (in shares) | 10,800,636 | 9,758,351 |
Trust services fee income | ||
Noninterest income: | ||
Fees and commissions | $ 1,579 | $ 1,468 |
Brokerage fee income | ||
Noninterest income: | ||
Fees and commissions | 2,322 | 1,810 |
Service charges on deposit accounts | ||
Noninterest income: | ||
Fees and commissions | 1,225 | 1,170 |
Card interchange income | ||
Noninterest income: | ||
Fees and commissions | $ 1,562 | $ 1,420 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 10,673 | $ 10,350 |
Unrealized gains (losses) on securities AFS: | ||
Net unrealized holding gains (losses) | 4,329 | 7,711 |
Net realized (gains) losses included in income | 0 | (13) |
Income tax (expense) benefit | (1,168) | (2,079) |
Total other comprehensive income (loss) | 3,161 | 5,619 |
Comprehensive income | $ 13,834 | $ 15,969 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non- controlling Interest |
Beginning Balance at Dec. 31, 2018 | $ 387,352 | $ 95 | $ 247,790 | $ 144,364 | $ (5,640) | $ 743 |
Comprehensive income: | ||||||
Net income | 10,350 | 10,267 | 83 | |||
Other comprehensive income (loss) | 5,619 | 5,619 | ||||
Stock-based compensation expense | 1,108 | 1,108 | ||||
Exercise of stock options, net | 698 | 698 | ||||
Issuance of common stock | 148 | 148 | ||||
Purchase and retirement of common stock | (5,682) | (1) | (5,681) | |||
Ending Balance at Mar. 31, 2019 | 399,593 | 94 | 244,063 | 154,631 | (21) | 826 |
Beginning Balance at Dec. 31, 2019 | 516,990 | 106 | 312,733 | 199,005 | 4,418 | 728 |
Comprehensive income: | ||||||
Net income | 10,673 | 10,555 | 118 | |||
Other comprehensive income (loss) | 3,161 | 3,161 | ||||
Stock-based compensation expense | 1,299 | 1,299 | ||||
Exercise of stock options, net | 851 | 851 | ||||
Issuance of common stock | 215 | 215 | ||||
Purchase and retirement of common stock | (15,197) | (2) | (15,195) | |||
Distribution to noncontrolling interest | (77) | (77) | ||||
Ending Balance at Mar. 31, 2020 | $ 511,740 | $ 104 | $ 299,903 | $ 203,385 | $ 7,579 | $ 769 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Cash Flows From Operating Activities: | |||
Net income | $ 10,673 | $ 10,350 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization, and accretion | 2,156 | 1,108 | |
Provision for credit losses | 3,000 | 200 | |
Increase in cash surrender value of life insurance | (525) | (459) | |
Stock-based compensation expense | 1,299 | 1,108 | |
Asset (gains) losses, net | 654 | (172) | |
Gain on sale of loans held for sale, net | (3,017) | (1,102) | |
Proceeds from sale of loans held for sale | 103,950 | 37,338 | |
Origination of loans held for sale | (102,715) | (36,747) | |
Net change in: | |||
Accrued interest receivable and other assets | (5,567) | (1,748) | |
Accrued interest payable and other liabilities | 2,257 | 421 | |
Net cash provided by (used in) operating activities | 12,165 | 10,297 | |
Cash Flows From Investing Activities: | |||
Net (increase) decrease in loans | (32,238) | (21,728) | |
Net (increase) decrease in certificates of deposit in other banks | 501 | 1 | |
Purchases of securities AFS | (74,759) | (19,064) | |
Proceeds from sales of securities AFS | 0 | 8,076 | |
Proceeds from calls and maturities of securities AFS | 17,931 | 10,636 | |
Purchases of other investments | (3,673) | (63) | |
Net (increase) decrease in premises and equipment | (4,961) | (2,368) | |
Net cash provided by (used in) investing activities | (97,199) | (24,510) | |
Cash Flows From Financing Activities: | |||
Net increase (decrease) in deposits | 69,143 | (75,652) | |
Net increase in short-term borrowings | 75,000 | 0 | |
Proceeds from long-term borrowings | 20,000 | 0 | |
Repayments of long-term borrowings | (5,000) | (64) | |
Purchase and retirement of common stock | (15,197) | (5,682) | |
Proceeds from issuance of common stock | 215 | 148 | |
Proceeds from exercise of stock options | 851 | 698 | |
Distribution to noncontrolling interest | (77) | 0 | |
Net cash provided by (used in) financing activities | 144,935 | (80,552) | |
Net increase (decrease) in cash and cash equivalents | 59,901 | (94,765) | |
Cash and cash equivalents: | |||
Beginning | 182,059 | 249,526 | |
Ending | [1] | 241,960 | 154,761 |
Supplemental Disclosures of Cash Flow Information: | |||
Cash paid for interest | 6,077 | 5,466 | |
Cash paid for taxes | 0 | 0 | |
Capitalized mortgage servicing rights | $ 559 | $ 319 | |
[1] | Cash and cash equivalents at March 31, 2020 include restricted cash of $1.9 million pledged as collateral on interest rate swaps and no reserve balance was required with the Federal Reserve Bank. At March 31, 2019, cash and cash equivalents include $9.0 million for the reserve balance required with the Federal Reserve Bank. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Cash Flows [Abstract] | ||
Restricted cash and cash equivalents | $ 0 | $ 9,000,000 |
Restricted cash pledged as collateral on interest rate swaps | $ 1,900,000 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation General In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the consolidated balance sheets, statements of income, comprehensive income, changes in stockholders’ equity and cash flows of Nicolet Bankshares, Inc. (the “Company” or “Nicolet”) and its subsidiaries, for the periods presented, and all such adjustments are of a normal recurring nature. All material intercompany transactions and balances have been eliminated. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the entire year. These interim consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission and, therefore, certain information and footnote disclosures normally presented in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been omitted or abbreviated. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . Critical Accounting Policies and Estimates Preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future. Estimates are used in accounting for, among other items, the allowance for credit losses, valuation of loans in acquisition transactions, useful lives for depreciation and amortization, fair value of financial instruments, other-than-temporary impairment calculations, valuation of deferred tax assets, uncertain income tax positions and contingencies. Estimates that are particularly susceptible to significant change for the Company include the determination of the allowance for credit losses, the determination and assessment of deferred tax assets and liabilities, and the valuation of loans acquired in acquisition transactions; therefore, these are critical accounting policies. Factors that may cause sensitivity to the aforementioned estimates include but are not limited to: external market factors such as market interest rates and employment rates, changes to operating policies and procedures, changes in applicable banking or tax regulations, and changes to deferred tax estimates. Actual results may ultimately differ from estimates, although management does not generally believe such differences would materially affect the consolidated financial statements in any individual reporting period presented. There have been no material changes or developments with respect to the assumptions or methodologies that the Company uses when applying what management believes are critical accounting policies and developing critical accounting estimates as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 , except as disclosed in Updates to Significant Accounting Policies and Recent Accounting Developments Adopted below. Updates to Significant Accounting Policies Securities Available for Sale : Securities classified as AFS are those securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity. Any decision to sell a security classified as AFS would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. The Company evaluates securities AFS in unrealized loss positions on a quarterly basis to determine whether the decline in fair value below the amortized costs basis (impairment) is due to credit-related factors or noncredit-related factors. In making this evaluation, management considers the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. Any impairment that is not credit-related is recognized in other comprehensive income, net of related deferred income taxes. Credit-related impairment is recognized as an allowance for credit losses (“ACL”) on the balance sheet based on the amount by which the amortized cost basis exceeds the fair value, with a corresponding charge to net income. Both the ACL and the charge to net income may be reversed if conditions change. However, if the Company intends to sell an impaired AFS security or more likely than not will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount must be recognized in net income with a corresponding adjustment to the security's amortized cost basis rather than through the establishment of an ACL. See Note 5 for additional disclosures on AFS securities. Loans – Originated : Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are carried at their amortized cost basis, which is the unpaid principal balance outstanding, net of deferred loan fees and costs and any direct principal charge-offs. The Company made an accounting policy election to exclude accrued interest from the amortized cost basis of loans and report such accrued interest as part of accrued interest receivable and other assets on the consolidated balance sheets. Interest income is accrued on the unpaid principal balance using the simple interest method. The accrual of interest income on loans is discontinued when, in the opinion of management, there is reasonable doubt as to the borrower’s ability to meet payment of interest or principal when due. Loans are generally placed on nonaccrual status when contractually past due 90 days or more as to interest or principal, though may be placed in such status earlier based on the circumstances. Loans past due 90 days or more may continue on accrual only when they are well secured and/or in process of collection or renewal. When interest accrual is discontinued, all previously accrued but uncollected interest is reversed against current period interest income. Except in very limited circumstances, cash collections on nonaccrual loans are credited to the loan receivable balance and no interest income is recognized on those loans until the principal balance is paid in full. Accrual of interest may be resumed when the customer is current on all principal and interest payments and has been paying on a timely basis for a sustained period of time. See Note 6 for additional information and disclosures on loans. Loans – Acquired : Loans purchased in acquisition transactions are acquired loans, and are recorded at their estimated fair value at the acquisition date. Prior to January 1, 2020, as described in further detail in the Company’s 2019 Annual Report on Form 10-K, the Company initially classified acquired loans as either purchased credit impaired (“PCI”) loans (i.e., loans that reflect credit deterioration since origination and it is probable at acquisition that the Company will be unable to collect all contractually required payments) or purchased non-impaired loans (i.e., “performing acquired loans”). The Company estimated the fair value of PCI loans based on the amount and timing of expected principal, interest and other cash flows for each loan. The excess of the loan’s contractual principal and interest payments over all cash flows expected to be collected at acquisition was considered an amount that should not be accreted. These credit discounts (“nonaccretable marks”) were included in the determination of the initial fair value for acquired loans; therefore, no allowance for credit losses was recorded at the acquisition date. Differences between the estimated fair values and expected cash flows of acquired loans at the acquisition date that were not credit-based (“accretable marks”) were subsequently accreted to interest income over the estimated life of the loans. Subsequent to the acquisition date for PCI loans, increases in cash flows over those expected at the acquisition date resulted in a move of the discount from nonaccretable to accretable, while decreases in expected cash flows after the acquisition date were recognized through the provision for credit losses. Subsequent to January 1, 2020, acquired loans that have evidence of more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. At acquisition, an estimate of expected credit losses is made for PCD loans. This initial allowance for credit losses is allocated to individual PCD loans and added to the purchase price or acquisition date fair value to establish the initial amortized cost basis of the PCD loans. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to noncredit factors, resulting in a discount or premium that is amortized to interest income. For acquired loans not deemed PCD loans at acquisition, the difference between the initial fair value mark and the unpaid principal balance are recognized in interest income over the estimated life of the loans. In addition, an initial allowance for expected credit losses is estimated and recorded as provision expense at the acquisition date. The subsequent measurement of expected credit losses for all acquired loans is the same as the subsequent measurement of expected credit losses for originated loans. See Note 6 for additional information and disclosures on loans. Allowance for Credit Losses - Loans : The ACL-Loans represents management’s estimate of expected credit losses in the Company’s loan portfolio at the balance sheet date. The Company estimates the ACL-Loans based on the amortized costs basis of the underlying loan and has made an accounting policy election to exclude accrued interest from the loan’s amortized cost basis and the related measurement of the ACL-Loans. Estimating the amount of the ACL-Loans is a function of a number of factors, including but not limited to changes in the loan portfolio, net charge-offs, trends in past due and nonaccrual loans, and the level of potential problem loans, all of which may be susceptible to significant change. Prior to January 1, 2020, as described in further detail in the Company’s 2019 Annual Report on Form 10-K, the Company used an incurred loss impairment model. This methodology assessed the overall appropriateness of the allowance for credit losses and included allocations for specifically identified impaired loans and loss factors for all remaining loans, with a component primarily based on historical loss rates and another component primarily based on other qualitative factors. Impaired loans were individually assessed and measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price or the fair value of the collateral if the loan was collateral dependent. Loans that were determined not to be impaired were collectively evaluated for impairment, stratified by type and allocated loss ranges based on the Company’s actual historical loss ratios for each strata, and adjustments were also provided for certain environmental and other qualitative factors. Subsequent to January 1, 2020, the Company uses a current expected loss model (“CECL”). This methodology also considers historical loss rates and other qualitative adjustments, as well as a new forward-looking component that considers reasonable and supportable forecasts over the expected life of each loan. To develop the ACL-Loans estimate under the current expected loss model, the Company segments the loan portfolio into loan pools based on loan type and similar credit risk elements; performs an individual evaluation of PCD loans; calculates the historical loss rates for the segmented loan pools; applies the loss rates over the calculated life of the pooled loans; adjusts for forecasted macro-level economic conditions; and determines qualitative adjustments based on factors and conditions unique to Nicolet's portfolio. Recent Accounting Developments Adopted In August 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . This ASU modifies the disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. The updated guidance was effective for annual reporting periods, including interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted the updated guidance effective January 1, 2020, with no material impact on its consolidated financial statements as the new ASU only revises disclosure requirements. See Note 9 for fair value disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments intended to improve the financial reporting by requiring earlier recognition of credit losses on loans and certain other financial assets. Topic 326 replaces the incurred loss impairment model (which recognizes losses when a probable threshold is met) with a requirement to recognize lifetime expected credit losses immediately when a financial asset is originated or purchased. The measurement of lifetime expected credit losses is based on historical experience, current conditions, and reasonable and supportable forecasts. The ASU was effective for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted the new accounting standard on January 1, 2020, as required, and recorded a cumulative-effect adjustment of $6 million to retained earnings. See Updates to Significant Accounting Policies above for changes to accounting policies and see Note 6 for additional disclosures on this new accounting pronouncement. Reclassifications Certain amounts in the 2019 consolidated financial statements have been reclassified to conform to the 2020 presentation. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Choice Bancorp, Inc. (“Choice”): On November 8, 2019, the Company consummated its merger with Choice, pursuant to the terms of the Agreement and Plan of Merger dated June 26, 2019, (the “Choice Merger Agreement”), whereby Choice (at 12% of Nicolet’s then pre-merger asset size) was merged with and into Nicolet, and Choice Bank, the wholly owned bank subsidiary of Choice, was merged with and into the Bank. The system integration was completed, and the two branches of Choice opened on November 12, 2019, as Nicolet National Bank branches, expanding its presence in the Oshkosh marketplace. The Company closed its legacy Oshkosh location concurrently with the consummation of the Choice merger. The purpose of the merger was to continue Nicolet’s interest in strategic growth, consistent with its plan to improve profitability through efficiency, leverage the strengths of each bank across the combined customer base, and add shareholder value. With the merger, Nicolet became the leading community bank to serve the Oshkosh marketplace. Pursuant to the Choice Merger Agreement, the final purchase price consisted of issuing 1,184,102 shares of the Company's common stock (given the final stock-for-stock exchange ratio of 0.497 , and not exchanging the Choice shares owned by the Company immediately prior to the time of the merger), for common stock consideration of $79.8 million (based on $67.39 per share, the volume weighted average closing price of the Company's common stock over the preceding 30 trading day period) plus cash consideration of $1.7 million . Approximately $0.2 million in direct stock issuance costs for the merger were incurred and charged against additional paid-in capital. Upon consummation, the Company added $457 million in assets, including $348 million in loans, $289 million in deposits, $1.7 million in core deposit intangible, and $45 million of goodwill. The Company accounted for the transaction under the acquisition method of accounting, and thus, the financial position and results of operations of Choice prior to the consummation date were not included in the accompanying consolidated financial statements. The accounting required assets purchased and liabilities assumed to be recorded at their respective estimated fair values at the date of acquisition. Pending Acquisitions: Commerce Financial Holdings, Inc. (“Commerce”): On February 17, 2020, Nicolet entered into a definitive merger agreement with Commerce Financial Holdings, Inc. (“Commerce”) pursuant to which Commerce will merge with and into Nicolet, providing entry into Wisconsin's largest MSA. The acquisition will involve stock-for-stock consideration at a fixed exchange ratio, subject to a $62 per share collar and an $82 per share cap provision provided for in the merger agreement. Stock markets significantly declined in early March following the declaration of COVID-19 as a pandemic, and remain volatile. Since mid-March, Nicolet’s stock price has been below the collar price. If our price, as defined in the merger agreement, moves above the $62 collar, we expect the transaction will close in third quarter 2020, pending fulfillment of all other closing conditions, including approvals by Commerce shareholders and regulators. As we have communicated to Commerce management, if our price remains below the $62 collar, we expect we will invoke our termination right provided in the merger agreement and the transaction will not close, despite meeting all other closing conditions. Nicolet believes if its common stock price is below $62 per share, such pricing is a signal of the farther reaching and prolonged impacts of the COVID–19 pandemic, which are still volatile and uncertain. If Nicolet’s stock price is below $62 , Nicolet believes that consummating a transaction at a fixed exchange ratio reflecting comparative valuations set before the onset of the COVID–19 pandemic is not prudent for Nicolet’s shareholders in today’s unsettled environment Commerce would represent approximately 16% of the combined company's assets at March 31, 2020 . At March 31, 2020 , Commerce had total assets of $729 million , loans of $618 million , deposits of $620 million , and equity of $71 million . Advantage Community Bancshares, Inc. (“Advantage”): On March 2, 2020, Nicolet entered into a definitive merger agreement with Advantage pursuant to which Advantage will merge with and into Nicolet. Due to the relative small size of the transaction, terms of the all-cash deal were not disclosed. At March 31, 2020 , Advantage had total assets of $149 million , loans of $94 million , deposits of $126 million , and equity of $20 million . The merger is expected to close in the third quarter of 2020 and remains subject to customary closing conditions, including approval by Advantage shareholders and regulatory approvals. |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Basic earnings per common share are calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share are calculated by dividing net income available to common shareholders by the weighted average number of shares adjusted for the dilutive effect of common stock awards (outstanding stock options and unvested restricted stock), if any. Presented below are the calculations for basic and diluted earnings per common share. Three Months Ended March 31, (In thousands, except per share data) 2020 2019 Net income attributable to Nicolet Bankshares, Inc. $ 10,555 $ 10,267 Weighted average common shares outstanding 10,516 9,461 Effect of dilutive common stock awards 285 297 Diluted weighted average common shares outstanding 10,801 9,758 Basic earnings per common share* $ 1.00 $ 1.09 Diluted earnings per common share* $ 0.98 $ 1.05 *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. For the three months ended March 31, 2020 and 2019 , options to purchase approximately 0.1 million shares are excluded from the calculation of diluted earnings per common share as the effect of their exercise would have been anti-dilutive. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company may grant stock options and restricted stock under its stock-based compensation plans to certain officers, employees and directors. These plans are administered by a committee of the Board of Directors. In February 2019, with subsequent shareholder approval, the 2011 Long-Term Incentive Plan was amended to increase the shares reserved for potential stock-based awards from 1,500,000 shares to 3,000,000 shares. At March 31, 2020 , approximately 1.4 million shares were available for grant under these stock-based compensation plans. A Black-Scholes model is utilized to estimate the fair value of stock option grants, while the market price of the Company’s stock at the date of grant is used to estimate the fair value of restricted stock awards. The weighted average assumptions used in the Black-Scholes model for valuing stock option grants were as follows. Three Months Ended March 31, 2020 2019 Dividend yield — % — % Expected volatility 25 % — % Risk-free interest rate 1.67 % — % Expected average life 7 years 0 years Weighted average per share fair value of options $ 21.83 $ — A summary of the Company’s stock option activity is summarized below. Stock Options Option Shares Outstanding Weighted Average Exercise Price Weighted Average Remaining Life (Years) Aggregate Intrinsic Value (in thousands) Outstanding - December 31, 2019 1,443,733 $ 48.75 Granted 39,500 71.89 Exercise of stock options * (38,702 ) 23.83 Forfeited — — Outstanding - March 31, 2020 1,444,531 $ 50.06 7.3 $ 10,543 Exercisable - March 31, 2020 554,331 $ 43.43 6.5 $ 6,293 * 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 three months ended March 31, 2020 , 16,671 such shares were surrendered to the Company. Intrinsic value represents the amount by which the fair market value of the underlying stock exceeds the exercise price of the stock options. The intrinsic value of options exercised for the three months ended March 31, 2020 and 2019 was approximately $1.8 million and $1.1 million , respectively. A summary of the Company’s restricted stock activity is summarized below. Restricted Stock Weighted Average Grant Date Fair Value Restricted Shares Outstanding Outstanding - December 31, 2019 $ 44.94 22,521 Granted 72.00 2,500 Vested * 38.89 (4,500 ) Forfeited — — Outstanding - March 31, 2020 $ 49.56 20,521 * The terms of the restricted stock agreements permit the surrender of shares to the Company upon vesting in order to satisfy applicable tax withholding requirements at the minimum statutory withholding rate, and accordingly, 1,341 shares were surrendered during the three months ended March 31, 2020 . The Company recognized approximately $1.3 million and $1.1 million of stock-based compensation expense (included in personnel on the consolidated statements of income) for the three months ended March 31, 2020 and 2019 , respectively, associated with its common stock awards granted to officers and employees. As of March 31, 2020 , there was approximately $12.8 million of unrecognized compensation cost related to equity award grants. The cost is expected to be recognized over the remaining vesting period of approximately 3.2 years. The Company recognized a tax benefit of approximately $0.3 million for the three months ended March 31, 2020 for the tax impact of stock option exercises and vesting of restricted stock. |
Securities Available for Sale
Securities Available for Sale | 3 Months Ended |
Mar. 31, 2020 | |
Debt Securities, Available-for-sale [Abstract] | |
Securities Available for Sale | Securities Available for Sale Amortized cost and fair value of securities available for sale are summarized as follows. March 31, 2020 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government agency securities $ 64,180 $ 288 $ 216 $ 64,252 State, county and municipals 155,700 1,661 25 157,336 Mortgage-backed securities 203,575 6,499 121 209,953 Corporate debt securities 78,023 2,516 220 80,319 Total $ 501,478 $ 10,964 $ 582 $ 511,860 December 31, 2019 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government agency securities $ 16,516 $ 4 $ 60 $ 16,460 State, county and municipals 155,501 1,049 157 156,393 Mortgage-backed securities 193,223 2,492 697 195,018 Corporate debt securities 78,009 3,422 — 81,431 Total $ 443,249 $ 6,967 $ 914 $ 449,302 The following table presents gross unrealized losses and the related estimated fair value of securities AFS for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position. March 31, 2020 Less than 12 months 12 months or more Total ($ in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Number of Securities U.S. government agency securities $ — $ — $ 10,854 $ 216 $ 10,854 $ 216 2 State, county and municipals 12,286 25 — — 12,286 25 30 Mortgage-backed securities 9,261 32 17,829 89 27,090 121 50 Corporate debt securities 16,777 220 — — 16,777 220 9 Total $ 38,324 $ 277 $ 28,683 $ 305 $ 67,007 $ 582 91 December 31, 2019 Less than 12 months 12 months or more Total ($ in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Number of Securities U.S. government agency securities $ 1,035 $ 2 $ 11,091 $ 58 $ 12,126 $ 60 6 State, county and municipals 22,451 132 7,605 25 30,056 157 56 Mortgage-backed securities 49,626 245 47,271 452 96,897 697 150 Corporate debt securities — — — — — — — Total $ 73,112 $ 379 $ 65,967 $ 535 $ 139,079 $ 914 212 The Company evaluates securities AFS in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. In making this evaluation, management considers the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. As of March 31, 2020 , 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; thus, no allowance for credit losses on securities AFS was recorded. The Company has the ability and intent to hold its securities to maturity. There were no other-than-temporary impairments charged to earnings during the full year 2019 . The amortized cost and fair value of securities AFS by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties; as this is particularly inherent in mortgage-backed securities, these securities are not included in the maturity categories below. March 31, 2020 (in thousands) Amortized Cost Fair Value Due in less than one year $ 16,942 $ 16,982 Due in one year through five years 235,471 237,604 Due after five years through ten years 35,066 35,929 Due after ten years 10,424 11,392 297,903 301,907 Mortgage-backed securities 203,575 209,953 Securities AFS $ 501,478 $ 511,860 Proceeds and realized gains / losses from the sale of securities AFS were as follows. Three Months Ended March 31, (in thousands) 2020 2019 Gross gains $ — $ 133 Gross losses — (120 ) Gains (losses) on sales of securities AFS, net $ — $ 13 Proceeds from sales of securities AFS $ — $ 8,076 |
Loans, Allowance for Credit Los
Loans, Allowance for Credit Losses - Loans, and Credit Quality | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Loans, Allowance for Credit Losses - Loans, and Credit Quality | Loans, Allowance for Credit Losses - Loans, and Credit Quality The loan composition is summarized as follows. March 31, 2020 December 31, 2019 (in thousands) Amount % of Total Amount % of Total Commercial & industrial $ 831,257 32 % $ 806,189 31 % Owner-occupied CRE 499,705 19 496,372 19 Agricultural 95,991 3 95,450 4 CRE investment 448,758 17 443,218 17 Construction & land development 96,055 4 92,970 4 Residential construction 52,945 2 54,403 2 Residential first mortgage 432,126 17 432,167 17 Residential junior mortgage 121,105 5 122,771 5 Retail & other 29,482 1 30,211 1 Loans 2,607,424 100 % 2,573,751 100 % Less allowance for credit losses - Loans (“ACL-Loans”) 26,202 13,972 Loans, net $ 2,581,222 $ 2,559,779 Allowance for credit losses - Loans to loans 1.00 % 0.54 % Accrued interest on loans of $7 million at both March 31, 2020 and December 31, 2019 is included in accrued interest receivable and other assets on the consolidated balance sheets. See Note 1 for for the Company's accounting policy on accrued interest with respect to loans and the allowance for credit losses. Allowance for Credit Losses-Loans : The majority of the Company’s loans, commitments, and letters of credit have been granted to customers in the Company’s market area. Although the Company has a diversified loan portfolio, the credit risk in the loan portfolio is largely influenced by general economic conditions and trends of the counties and markets in which the debtors operate, and the resulting impact on the operations of borrowers or on the value of underlying collateral, if any. A roll forward of the allowance for credit losses is summarized as follows. Three Months Ended Year Ended (in thousands) March 31, 2020 March 31, 2019 December 31, 2019 Beginning balance $ 13,972 $ 13,153 $ 13,153 Adoption of CECL 8,488 — — Initial PCD ACL 797 — — Total impact for adoption of CECL 9,285 — — Provision for credit losses 3,000 200 1,200 Charge-offs (93 ) (10 ) (927 ) Recoveries 38 27 546 Net (charge-offs) recoveries (55 ) 17 (381 ) Ending balance $ 26,202 $ 13,370 $ 13,972 The following table presents the balance and activity in the ACL-Loans by portfolio segment. TOTAL – Three Months Ended March 31, 2020 (in thousands) Commercial & industrial Owner- occupied CRE Agricultural CRE investment Construction & land development Residential construction Residential first mortgage Residential junior mortgage Retail & other Total ACL-Loans: Beginning balance $ 5,471 $ 3,010 $ 579 $ 1,600 $ 414 $ 368 $ 1,669 $ 517 $ 344 $ 13,972 Adoption of CECL 2,962 1,249 361 1,970 51 124 1,286 351 134 8,488 Initial PCD ACL 797 — — — — — — — — 797 Provision 1,253 163 95 795 82 (50 ) 533 102 27 3,000 Charge-offs — — — (20 ) — — — — (73 ) (93 ) Recoveries 30 — — — — — 1 3 4 38 Net (charge-offs) recoveries 30 — — (20 ) — — 1 3 (69 ) (55 ) Ending balance $ 10,513 $ 4,422 $ 1,035 $ 4,345 $ 547 $ 442 $ 3,489 $ 973 $ 436 $ 26,202 As % of ACL-Loans 40 % 17 % 4 % 16 % 2 % 2 % 13 % 4 % 2 % 100 % For comparison purposes, the following table presents the balance and activity in the ACL-Loans by portfolio segment for the prior year-end period. TOTAL – Year Ended December 31, 2019 (in thousands) Commercial & industrial Owner- occupied CRE Agricultural CRE investment Construction & land development Residential construction Residential first mortgage Residential junior mortgage Retail & other Total ACL-Loans: Beginning balance $ 5,271 $ 2,847 $ 422 $ 1,470 $ 510 $ 211 $ 1,646 $ 472 $ 304 $ 13,153 Provision (61 ) 254 157 130 (96 ) 383 9 86 338 1,200 Charge-offs (159 ) (93 ) — — — (226 ) (22 ) (80 ) (347 ) (927 ) Recoveries 420 2 — — — — 36 39 49 546 Net (charge-offs) recoveries 261 (91 ) — — — (226 ) 14 (41 ) (298 ) (381 ) Ending balance $ 5,471 $ 3,010 $ 579 $ 1,600 $ 414 $ 368 $ 1,669 $ 517 $ 344 $ 13,972 As % of ACL-Loans 39 % 22 % 4 % 11 % 3 % 3 % 12 % 4 % 2 % 100 % The ACL-Loans at March 31, 2020 was estimated using the current expected credit loss model. See Note 1 for the Company's accounting policy on loans and the allowance for credit losses. The ACL-Loans represents management’s estimate of expected credit losses in the Company’s loan portfolio at the balance sheet date. To assess the appropriateness of the ACL-Loans, an allocation methodology is applied by Nicolet which focuses on evaluation of qualitative and environmental factors, including but not limited to: (i) evaluation of facts and issues related to specific loans; (ii) management’s ongoing review and grading of the loan portfolio; (iii) consideration of historical loan loss and delinquency experience on each portfolio segment; (iv) trends in past due and nonperforming loans; (v) the risk characteristics of the various loan segments; (vi) changes in the size and character of the loan portfolio; (vii) concentrations of loans to specific borrowers or industries; (viii) existing economic conditions; (ix) the fair value of underlying collateral; and (x) other qualitative and quantitative factors which could affect expected credit losses. Assessing these numerous factors involves significant judgment. Management allocates the ACL-Loans by pools of risk within each loan portfolio segment. The allocation methodology consists of the following components. First, a specific reserve is established for individually evaluated credit-deteriorated loans, which management defines as nonaccrual credit relationships over $250,000 , all loans determined to be troubled debt restructurings (“restructured loans”), plus other loans with evidence of credit deterioration. The specific reserve in the ACL-Loans for these credit deteriorated loans is equal to the aggregate collateral or discounted cash flow shortfall. Second, management allocates the ACL-Loans with historical loss rates by loan segment. The loss factors are measured on a quarterly basis and applied to each loan segment based on current loan balances and projected for their expected remaining life. Next, management allocates ACL-Loans using the qualitative factors mentioned above. Consideration is given to those current qualitative or environmental factors that are likely to cause estimated credit losses as of the evaluation date to differ from the historical loss experience of each loan segment. Lastly, management considers reasonable and supportable forecasts to assess the collectability of future cash flows. A loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following table presents collateral dependent loans by portfolio segment and collateral type, including those loans with and without a related allowance allocation as of March 31, 2020 . March 31, 2020 Collateral Type (in thousands) Real Estate Other Business Assets Total Without an Allowance With an Allowance Allowance Allocation Commercial & industrial $ — $ 5,544 $ 5,544 $ 978 $ 4,566 $ 1,683 Owner-occupied CRE 3,168 — 3,168 3,168 — — Agricultural 611 921 1,532 663 869 61 CRE investment 1,029 — 1,029 1,029 — — Construction & land development 533 — 533 533 — — Residential construction — — — — — — Residential first mortgage — — — — — — Residential junior mortgage — — — — — — Retail & other — — — — — — Total loans $ 5,341 $ 6,465 $ 11,806 $ 6,371 $ 5,435 $ 1,744 The following table presents impaired loans and their respective allowance for credit loss allocations at December 31, 2019 , as determined in accordance with historical accounting guidance. Total Impaired Loans – December 31, 2019 (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Commercial & industrial $ 5,932 $ 7,950 $ 625 $ 5,405 $ 1,170 Owner-occupied CRE 3,430 4,016 — 3,677 256 Agricultural 2,134 2,172 116 2,311 37 CRE investment 2,426 2,790 — 2,497 364 Construction & land development 382 382 — 460 — Residential construction — — — — — Residential first mortgage 2,357 2,629 — 2,412 178 Residential junior mortgage 218 349 — 224 58 Retail & other 12 12 — 12 — Total $ 16,891 $ 20,300 $ 741 $ 16,998 $ 2,063 Past Due and Nonaccrual Loans : The following tables present past due loans by portfolio segment. March 31, 2020 (in thousands) 30-89 Days Past Due (accruing) 90 Days & Over or nonaccrual Current Total Commercial & industrial $ 1,060 $ 6,050 $ 824,147 $ 831,257 Owner-occupied CRE 1,961 3,837 493,907 499,705 Agricultural 1 1,801 94,189 95,991 CRE investment 484 1,029 447,245 448,758 Construction & land development 210 533 95,312 96,055 Residential construction 100 — 52,845 52,945 Residential first mortgage 1,985 953 429,188 432,126 Residential junior mortgage 249 566 120,290 121,105 Retail & other 80 — 29,402 29,482 Total loans $ 6,130 $ 14,769 $ 2,586,525 $ 2,607,424 Percent of total loans 0.2 % 0.6 % 99.2 % 100.0 % December 31, 2019 (in thousands) 30-89 Days Past Due (accruing) 90 Days & Over or nonaccrual Current Total Commercial & industrial $ 1,729 $ 6,249 $ 798,211 $ 806,189 Owner-occupied CRE 112 3,311 492,949 496,372 Agricultural — 1,898 93,552 95,450 CRE investment — 1,073 442,145 443,218 Construction & land development 2,063 20 90,887 92,970 Residential construction 302 — 54,101 54,403 Residential first mortgage 2,736 1,090 428,341 432,167 Residential junior mortgage 217 480 122,074 122,771 Retail & other 110 1 30,100 30,211 Total loans $ 7,269 $ 14,122 $ 2,552,360 $ 2,573,751 Percent of total loans 0.3 % 0.5 % 99.2 % 100.0 % The following table presents nonaccrual loans by portfolio segment. The nonaccrual loans without a related allowance for credit losses have been reflected in the collateral dependent loans table above. March 31, 2020 December 31, 2019 (in thousands) Nonaccrual Loans % of Total Nonaccrual Loans % of Total Commercial & industrial $ 6,050 41 % $ 6,249 44 % Owner-occupied CRE 3,837 26 3,311 23 Agricultural 1,801 12 1,898 14 CRE investment 1,029 7 1,073 8 Construction & land development 533 4 20 — Residential construction — — — — Residential first mortgage 953 6 1,090 8 Residential junior mortgage 566 4 480 3 Retail & other — — 1 — Nonaccrual loans $ 14,769 100 % $ 14,122 100 % Percent of total loans 0.6 % 0.5 % Credit Quality Information : The following table presents total loans by risk categories and year of origination. March 31, 2020 Amortized Cost Basis by Origination Year (in thousands) 2020 2019 2018 2017 2016 Prior Revolving Revolving to Term TOTAL Commercial & industrial Grades 1-4 $ 45,598 $ 151,079 $ 118,171 $ 77,690 $ 31,727 $ 64,618 $ 291,990 $ — $ 780,873 Grade 5 39 3,470 7,446 576 1,479 2,830 7,845 — 23,685 Grade 6 — 23 823 4 1 37 4,946 — 5,834 Grade 7 113 2,078 1,115 1,404 1,372 7,393 7,390 — 20,865 Total $ 45,750 $ 156,650 $ 127,555 $ 79,674 $ 34,579 $ 74,878 $ 312,171 $ — $ 831,257 Owner-occupied CRE Grades 1-4 $ 21,337 $ 68,525 $ 84,981 $ 64,514 $ 50,402 $ 175,204 $ 2,340 $ — $ 467,303 Grade 5 — 576 1,706 7,882 396 6,676 488 — 17,724 Grade 6 — — — 1,749 — 56 — — 1,805 Grade 7 — 168 285 2,197 1,797 8,426 — — 12,873 Total $ 21,337 $ 69,269 $ 86,972 $ 76,342 $ 52,595 $ 190,362 $ 2,828 $ — $ 499,705 Agricultural Grades 1-4 $ 4,321 $ 7,982 $ 7,604 $ 10,793 $ 3,998 $ 26,721 $ 20,468 $ — $ 81,887 Grade 5 — — 38 179 710 4,064 89 — 5,080 Grade 6 — — — 329 392 — 49 — 770 Grade 7 — — 58 117 1,375 5,893 811 — 8,254 Total $ 4,321 $ 7,982 $ 7,700 $ 11,418 $ 6,475 $ 36,678 $ 21,417 $ — $ 95,991 CRE investment Grades 1-4 $ 29,442 $ 72,601 $ 45,017 $ 71,370 $ 44,213 $ 168,170 $ 6,238 $ — $ 437,051 Grade 5 — — 55 — 394 6,629 — — 7,078 Grade 6 — 105 — 915 656 — — — 1,676 Grade 7 — — — — 146 2,807 — — 2,953 Total $ 29,442 $ 72,706 $ 45,072 $ 72,285 $ 45,409 $ 177,606 $ 6,238 $ — $ 448,758 Construction & land development Grades 1-4 $ 7,276 $ 46,643 $ 20,176 $ 3,719 $ 2,683 $ 9,827 $ 1,678 $ — $ 92,002 Grade 5 — 219 2,699 45 — 26 — — 2,989 Grade 6 — — — — — — — — — Grade 7 — 149 — — — 915 — — 1,064 Total $ 7,276 $ 47,011 $ 22,875 $ 3,764 $ 2,683 $ 10,768 $ 1,678 $ — $ 96,055 Residential construction Grades 1-4 $ 3,495 $ 44,300 $ 3,922 $ 466 $ 29 $ 135 $ — $ — $ 52,347 Grade 5 — 542 — 56 — — — — 598 Grade 6 — — — — — — — — — Grade 7 — — — — — — — — — Total $ 3,495 $ 44,842 $ 3,922 $ 522 $ 29 $ 135 $ — $ — $ 52,945 Residential first mortgage Grades 1-4 $ 24,900 $ 79,077 $ 59,651 $ 56,748 $ 60,809 $ 142,975 $ 1,538 $ 1 $ 425,699 Grade 5 — 1,215 296 309 697 1,153 — — 3,670 Grade 6 — — — — — 2 — — 2 Grade 7 — 778 198 20 66 1,693 — — 2,755 Total $ 24,900 $ 81,070 $ 60,145 $ 57,077 $ 61,572 $ 145,823 $ 1,538 $ 1 $ 432,126 Residential junior mortgage Grades 1-4 $ 927 $ 7,017 $ 5,941 $ 1,856 $ 2,021 $ 3,844 $ 95,033 $ 3,861 $ 120,500 Grade 5 — — — — — 34 — — 34 Grade 6 — — — — — — — — — Grade 7 — — — 30 — 355 75 111 571 Total $ 927 $ 7,017 $ 5,941 $ 1,886 $ 2,021 $ 4,233 $ 95,108 $ 3,972 $ 121,105 Retail & other Grades 1-4 $ 2,438 $ 5,605 $ 2,658 $ 1,161 $ 827 $ 1,156 $ 15,637 $ — $ 29,482 Grade 5 — — — — — — — — — Grade 6 — — — — — — — — — Grade 7 — — — — — — — — — Total $ 2,438 $ 5,605 $ 2,658 $ 1,161 $ 827 $ 1,156 $ 15,637 $ — $ 29,482 Total loans $ 139,886 $ 492,152 $ 362,840 $ 304,129 $ 206,190 $ 641,639 $ 456,615 $ 3,973 $ 2,607,424 The following tables present total loans by risk categories. March 31, 2020 (in thousands) Grades 1- 4 Grade 5 Grade 6 Grade 7 Total Commercial & industrial $ 780,873 $ 23,685 $ 5,834 $ 20,865 $ 831,257 Owner-occupied CRE 467,303 17,724 1,805 12,873 499,705 Agricultural 81,887 5,080 770 8,254 95,991 CRE investment 437,051 7,078 1,676 2,953 448,758 Construction & land development 92,002 2,989 — 1,064 96,055 Residential construction 52,347 598 — — 52,945 Residential first mortgage 425,699 3,670 2 2,755 432,126 Residential junior mortgage 120,500 34 — 571 121,105 Retail & other 29,482 — — — 29,482 Total loans $ 2,487,144 $ 60,858 $ 10,087 $ 49,335 $ 2,607,424 Percent of total 95.4 % 2.3 % 0.4 % 1.9 % 100.0 % December 31, 2019 (in thousands) Grades 1- 4 Grade 5 Grade 6 Grade 7 Total Commercial & industrial $ 765,073 $ 20,199 $ 7,663 $ 13,254 $ 806,189 Owner-occupied CRE 464,661 20,855 953 9,903 496,372 Agricultural 77,082 6,785 3,275 8,308 95,450 CRE investment 430,794 8,085 2,578 1,761 443,218 Construction & land development 90,523 2,213 15 219 92,970 Residential construction 53,286 1,117 — — 54,403 Residential first mortgage 424,044 4,677 668 2,778 432,167 Residential junior mortgage 122,249 35 — 487 122,771 Retail & other 30,210 — — 1 30,211 Total loans $ 2,457,922 $ 63,966 $ 15,152 $ 36,711 $ 2,573,751 Percent of total 95.5 % 2.5 % 0.6 % 1.4 % 100.0 % An internal loan review function rates loans using a grading system based on different risk categories. Loans with a Substandard grade are considered to have a greater risk of loss and may be assigned allocations for loss based on specific review of the weaknesses observed in the individual credits. Such loans are constantly monitored by the loan review function to ensure early identification of any deterioration. A description of the loan risk categories used by the Company follows. Grades 1-4, Pass: Credits exhibit adequate cash flows, appropriate management and financial ratios within industry norms and/or are supported by sufficient collateral. Some credits in these rating categories may require a need for monitoring but elements of concern are not severe enough to warrant an elevated rating. Grade 5, Watch: Credits with this rating are adequately secured and performing but are being monitored due to the presence of various short-term weaknesses which may include unexpected, short-term adverse financial performance, managerial problems, potential impact of a decline in the entire industry or local economy and delinquency issues. Loans to individuals or loans supported by guarantors with marginal net worth or collateral may be included in this rating category. Grade 6, Special Mention: Credits with this rating have potential weaknesses that, without the Company’s attention and correction may result in deterioration of repayment prospects. These assets are considered Criticized Assets. Potential weaknesses may include adverse financial trends for the borrower or industry, repeated lack of compliance with Company requests, increasing debt to net worth, serious management conditions and decreasing cash flow. Grade 7, Substandard: Assets with this rating are characterized by the distinct possibility the Company will sustain some loss if deficiencies are not corrected. All foreclosures, liquidations, and nonaccrual loans are considered to be categorized in this rating, regardless of collateral sufficiency. Nonaccretable Discount on Purchased Credit Impaired Loans : The following table summarizes the nonaccretable discount on purchased credit impaired loans prior to the adoption of ASU 2016-13. Three Months Ended Year Ended (in thousands) March 31, 2019 December 31, 2019 Balance at beginning of period $ 6,408 $ 6,408 Acquired balance, net — 911 Accretion to loan interest income (221 ) (4,713 ) Disposals of loans — (679 ) Balance at end of period $ 6,187 $ 1,927 Troubled Debt Restructurings : At March 31, 2020 , there were four loans classified as troubled debt restructurings with a current outstanding balance of $1.1 million and pre-modification balance of $1.4 million . In comparison, at December 31, 2019 , there were five loans classified as troubled debt restructurings with an outstanding balance of $1.1 million and pre-modification balance of $1.4 million . There were no loans classified as troubled debt restructurings during the previous twelve months that subsequently defaulted during the three months ended March 31, 2020 . As of March 31, 2020 , 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 Mortgage Servicing Rights | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles and Mortgage Servicing Rights | Goodwill and Other Intangibles and Mortgage Servicing Rights Management periodically reviews the carrying value of its intangible assets to determine if any impairment has occurred, in which case an impairment charge would be recorded as an expense in the period of impairment, or whether changes in circumstances have occurred that would require a revision to the remaining useful life which would impact expense prospectively. In making such determination, management evaluates whether there are any adverse qualitative factors indicating that an impairment may exist, as well as the performance, on an undiscounted basis, of the underlying operations or assets which give rise to the intangible. In the first quarter, management considered the potential impacts of the COVID-19 pandemic on the valuation of our franchise value, stability of deposits, and of the wealth client base, underlying our goodwill, core deposit intangible, and customer list intangibles, and determined no impairments were indicated. However, the impacts of the COVID-19 pandemic, which began in March 2020, are still evolving. The Company’s assessment in 2019 resulted in an $0.8 million full impairment charge on non-bank goodwill. A summary of goodwill and other intangibles was as follows. Three Months Ended Year Ended (in thousands) March 31, 2020 December 31, 2019 Goodwill $ 151,198 $ 151,198 Core deposit intangibles 10,031 10,897 Customer list intangibles 3,745 3,872 Other intangibles 13,776 14,769 Goodwill and other intangibles, net $ 164,974 $ 165,967 Goodwill : A summary of goodwill was as follows. During 2019, goodwill increased due to the Choice acquisition. See Note 2 for additional information on the Company's acquisitions. Three Months Ended Year Ended (in thousands) March 31, 2020 December 31, 2019 Goodwill: Goodwill at beginning of year $ 151,198 $ 107,366 Acquisition — 44,594 Impairment — (762 ) Goodwill at end of period $ 151,198 $ 151,198 Other intangible assets : Other intangible assets, consisting of core deposit intangibles and customer list intangibles, are amortized over their estimated finite lives. During 2019, core deposit intangibles increased due to the Choice acquisition. See Note 2 for additional information on the Company's acquisitions. Three Months Ended Year Ended (in thousands) March 31, 2020 December 31, 2019 Core deposit intangibles: Gross carrying amount $ 30,715 $ 30,715 Accumulated amortization (20,684 ) (19,818 ) Net book value $ 10,031 $ 10,897 Additions during the period $ — $ 1,700 Amortization during the period $ 866 $ 3,365 Customer list intangibles: Gross carrying amount $ 5,523 $ 5,523 Accumulated amortization (1,778 ) (1,651 ) Net book value $ 3,745 $ 3,872 Additions during the period $ — $ — Amortization during the period $ 127 $ 507 Mortgage servicing rights : Mortgage servicing rights are amortized in proportion to and over the period of estimated net servicing income, and assessed for impairment at each reporting date, with the amortization recorded in mortgage income, net, in the consolidated statements of income. Mortgage servicing rights are carried at the lower of the initial capitalized amount, net of accumulated amortization, or estimated fair value, and are included in other assets in the consolidated balance sheets. A summary of the changes in the mortgage servicing rights asset was as follows. Three Months Ended Year Ended (in thousands) March 31, 2020 December 31, 2019 Mortgage servicing rights ("MSR") asset: MSR asset at beginning of year $ 5,919 $ 3,749 Capitalized MSR 559 2,876 MSR asset acquired — 160 Amortization during the period (284 ) (866 ) MSR asset at end of period $ 6,194 $ 5,919 Valuation allowance at beginning of year $ — $ — Additions (175 ) — Valuation allowance at end of period $ (175 ) $ — MSR asset, net $ 6,019 $ 5,919 Fair value of MSR asset at end of period $ 8,807 $ 8,420 Residential mortgage loans serviced for others $ 890,162 $ 847,756 Net book value of MSR asset to loans serviced for others 0.68 % 0.70 % The Company periodically evaluates its mortgage servicing rights asset for impairment. At each reporting date, impairment is assessed based on estimated fair value using estimated prepayment speeds of the underlying mortgage loans serviced and stratifications based on the risk characteristics of the underlying loans (predominantly loan type and note interest rate). A valuation allowance of $0.2 million was recorded for the three months ended March 31, 2020 , while no valuation allowance was recorded for the year ended December 31, 2019 . See Note 9 for additional information on the fair value of the MSR asset. The following table shows the estimated future amortization expense for amortizing intangible assets and the MSR asset. The projections are based on existing asset balances, the current interest rate environment and prepayment speeds as of March 31, 2020 . The actual amortization expense the Company recognizes in any given period may be significantly different depending upon acquisition or sale activities, changes in interest rates, prepayment speeds, market conditions, regulatory requirements and events or circumstances that indicate the carrying amount of an asset may not be recoverable. (in thousands) Core deposit intangibles Customer list intangibles MSR asset Year ending December 31, 2020 (remaining nine months) $ 2,127 $ 380 $ 829 2021 2,453 507 937 2022 1,987 507 930 2023 1,490 483 962 2024 1,010 449 541 2025 573 449 541 Thereafter 391 970 1,454 Total $ 10,031 $ 3,745 $ 6,194 |
Short and Long-Term Borrowings
Short and Long-Term Borrowings | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Short and Long-Term Borrowings | Short and Long-Term Borrowings Short-Term Borrowings: Short-term borrowings include any borrowing with an original maturity of one year or less. The Company had a $75 million short-term FHLB advance, with a fixed rate of 0.61% , outstanding at March 31, 2020 . At December 31, 2019 , the Company did no t have any outstanding short-term borrowings. Long-Term Borrowings: The components of long-term borrowings (borrowing with an original maturity greater than one year) were as follows. (in thousands) March 31, 2020 December 31, 2019 FHLB advances $ 40,046 $ 25,061 Junior subordinated debentures 30,695 30,575 Subordinated notes 12,000 11,993 Total long-term borrowings $ 82,741 $ 67,629 Percent of fixed rate long-term borrowings 70 % 64 % Percent of floating rate long-term borrowings 30 % 36 % FHLB Advances : The FHLB advances bear fixed rates, require interest-only monthly payments, and have maturity dates through 2027. The weighted average rate of the FHLB advances was 1.11% at March 31, 2020 and 1.57% at December 31, 2019 . Junior Subordinated Debentures : The following table shows the breakdown of junior subordinated debentures. Interest on all debentures is current. Any applicable discounts (initially recorded to carry an acquired debenture at its then estimated fair market value) are being accreted to interest expense over the remaining life of the debentures. All the debentures below are currently callable and may be redeemed in part or in full at par plus any accrued but unpaid interest. At March 31, 2020 and December 31, 2019 , $29.5 million and $29.4 million , respectively, qualify as Tier 1 capital. Junior Subordinated Debentures 3/31/2020 3/31/2020 12/31/19 (in thousands) Maturity Date Par Unamortized Discount Carrying Value Carrying Value 2004 Nicolet Bankshares Statutory Trust (1) 7/15/2034 $ 6,186 $ — $ 6,186 $ 6,186 2005 Mid-Wisconsin Financial Services, Inc. (2) 12/15/2035 10,310 (3,122 ) 7,188 7,138 2006 Baylake Corp. (3) 9/30/2036 16,598 (3,824 ) 12,774 12,715 2004 First Menasha Bancshares, Inc. (4) 3/17/2034 5,155 (608 ) 4,547 4,536 Total $ 38,249 $ (7,554 ) $ 30,695 $ 30,575 (1) The interest rate is 8.00% fixed. (2) The debentures, assumed in April 2013 as the result of an acquisition, have a floating rate of the three-month LIBOR plus 1.43% , adjusted quarterly. The interest rates were 2.17% and 3.32% as of March 31, 2020 and December 31, 2019 , respectively. (3) The debentures, assumed in April 2016 as a result of an acquisition, have a floating rate of the three-month LIBOR plus 1.35% , adjusted quarterly. The interest rates were 2.72% and 3.31% as of March 31, 2020 and December 31, 2019 , respectively. (4) The debentures, assumed in April 2017 as the result of an acquisition, have a floating rate of the three-month LIBOR plus 2.79% , adjusted quarterly. The interest rates were 3.63% and 4.69% as of March 31, 2020 and December 31, 2019 , respectively. Subordinated Notes : In 2015, the Company placed an aggregate of $12 million in subordinated Notes in private placements with certain accredited investors. All Notes were issued with 10 -year maturities, have a fixed annual interest rate of 5% payable quarterly, are callable on or after the fifth anniversary of their respective issuances dates, and qualify for Tier 2 capital for regulatory purposes. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value represents the estimated price at which an orderly transaction to sell an asset or transfer a liability would take place between market participants at the measurement date under current market conditions (i.e., an exit price concept), and is a market-based measurement versus an entity-specific measurement. The Company records and/or discloses financial instruments on a fair value basis. These financial assets and financial liabilities are measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the observability of the assumptions used to determine fair value. These levels are: • Level 1 – quoted market prices in active markets for identical assets or liabilities that a company has the ability to access at the measurement date • Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly • Level 3 – significant unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity In instances where the fair value measurement is based on inputs from different levels, the level within which the entire fair value measurement will be categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. This assessment of the significance of an input requires management judgment. Recurring basis fair value measurements: The following table presents the balances of assets and liabilities measured at fair value on a recurring basis for the periods presented. (in thousands) Fair Value Measurements Using Measured at Fair Value on a Recurring Basis: Total Level 1 Level 2 Level 3 March 31, 2020 U.S. government agency securities $ 64,252 $ — $ 64,252 $ — State, county and municipals 157,336 — 157,336 — Mortgage-backed securities 209,953 — 209,953 — Corporate debt securities 80,319 — 77,189 3,130 Securities AFS $ 511,860 $ — $ 508,730 $ 3,130 Other investments (equity securities) $ 3,978 $ 3,978 $ — $ — December 31, 2019 U.S. government agency securities $ 16,460 $ — $ 16,460 $ — State, county and municipals 156,393 — 156,393 — Mortgage-backed securities 195,018 — 195,018 — Corporate debt securities 81,431 — 78,301 3,130 Securities AFS $ 449,302 $ — $ 446,172 $ 3,130 Other investments (equity securities) $ 3,375 $ 3,375 $ — $ — The following is a description of the valuation methodologies used by the Company for the securities AFS and equity securities measured at fair value on a recurring basis, noted in the tables above. Where quoted market prices on securities exchanges are available, the investments are classified as Level 1. Level 1 investments primarily include exchange-traded equity securities. If quoted market prices are not available, fair value is generally determined using prices obtained from independent pricing vendors who use pricing models (with typical inputs including benchmark yields, reported trades for similar securities, issuer spreads or relationship to other benchmark quoted securities), or discounted cash flows, and are classified as Level 2. Examples of these investments include U.S. government agency securities, mortgage-backed securities, obligations of state, county and municipals, and certain corporate debt securities. Finally, in certain cases where there is limited activity or less transparency around inputs to the estimated fair value, investments are classified within Level 3 of the hierarchy. Examples of these include private municipal bonds and corporate debt securities, which include trust preferred security investments. At March 31, 2020 and December 31, 2019 , it was determined that carrying value was the best approximation of fair value for these Level 3 securities, based primarily on the internal analysis on these securities. The following table presents the changes in the Level 3 securities AFS measured at fair value on a recurring basis. (in thousands) Three Months Ended Year Ended Level 3 Fair Value Measurements: March 31, 2020 December 31, 2019 Balance at beginning of year $ 3,130 $ 8,490 Acquired balance — 300 Paydowns/Sales/Settlements — (5,660 ) Balance at end of period $ 3,130 $ 3,130 Nonrecurring basis fair value measurements: The following table presents the Company’s assets measured at fair value on a nonrecurring basis, aggregated by level in the fair value hierarchy within which those measurements fall. (in thousands) Fair Value Measurements Using Measured at Fair Value on a Nonrecurring Basis: Total Level 1 Level 2 Level 3 March 31, 2020 Collateral dependent loans $ 10,062 $ — $ — $ 10,062 Other real estate owned (“OREO”) 1,000 — — 1,000 MSR asset 8,807 — — 8,807 December 31, 2019 Impaired loans $ 16,150 $ — $ — $ 16,150 OREO 1,000 — — 1,000 MSR asset 8,420 — — 8,420 The following is a description of the valuation methodologies used by the Company for the items noted in the table above. For individually evaluated impaired loans, the amount of impairment is based upon the present value of expected future cash flows discounted at the loan’s effective interest rate, the estimated fair value of the underlying collateral for collateral-dependent loans, or the estimated liquidity of the note. For OREO, the fair value is based upon the estimated fair value of the underlying collateral adjusted for the expected costs to sell. To estimate the fair value of the MSR asset, the underlying serviced loan pools are stratified by interest rate tranche and term of the loan, and a valuation model is used to calculate the present value of the expected future cash flows for each stratum. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as costs to service, a discount rate, ancillary income, default rates and losses, and prepayment speeds. Although some of these assumptions are based on observable market data, other assumptions are based on unobservable estimates of what market participants would use to measure fair value. Financial instruments: The carrying amounts and estimated fair values of the Company’s financial instruments are shown below. March 31, 2020 (in thousands) Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 241,960 $ 241,960 $ 241,960 $ — $ — Certificates of deposit in other banks 18,804 19,905 — 19,905 — Securities AFS 511,860 511,860 — 508,730 3,130 Other investments, including equity securities 27,176 27,176 3,978 19,260 3,938 Loans held for sale 3,929 4,006 — 4,006 — Loans, net 2,581,222 2,659,556 — — 2,659,556 BOLI 78,665 78,665 78,665 — — MSR asset 6,019 8,807 — — 8,807 Financial liabilities: Deposits $ 3,023,466 $ 3,029,747 $ — $ — $ 3,029,747 Short-term borrowings 75,000 75,000 — 75,000 — Long-term borrowings 82,741 82,958 — 40,877 42,081 December 31, 2019 (in thousands) Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 182,059 $ 182,059 $ 182,059 $ — $ — Certificates of deposit in other banks 19,305 19,310 — 19,310 — Securities AFS 449,302 449,302 — 446,172 3,130 Other investments, including equity securities 24,072 24,072 3,375 16,759 3,938 Loans held for sale 2,706 2,753 — 2,753 — Loans, net 2,559,779 2,593,110 — — 2,593,110 BOLI 78,140 78,140 78,140 — — MSR asset 5,919 8,420 — — 8,420 Financial liabilities: Deposits $ 2,954,453 $ 2,956,229 $ — $ — $ 2,956,229 Long-term borrowings 67,629 66,816 — 25,075 41,741 The carrying value of certain assets and liabilities such as cash and cash equivalents, BOLI, nonmaturing deposits, and short-term borrowings, approximate their estimated fair value. For those financial instruments not previously disclosed, the following is a description of the valuation methodologies used. Certificates of deposits in other banks: Fair values are estimated using discounted cash flow analysis based on current interest rates being offered by instruments with similar terms and represents a Level 2 measurement. Other investments: The valuation methodologies utilized for exchange-traded equity securities are discussed under “Recurring basis fair value measurements” above. The carrying amount of Federal Reserve Bank and FHLB stock is a reasonably accepted fair value estimate given their restricted nature. Fair value is the redeemable (carrying) value based on the redemption provisions of the instruments which is considered a Level 2 measurement. The carrying amount of the remaining other investments (particularly common stocks of companies or other banks that are not publicly traded) approximates their fair value, determined primarily by analysis of company financial statements and recent capital issuances of the respective companies or banks, if any, and represents a Level 3 measurement. Loans held for sale: The fair value estimation process for the loans held for sale portfolio is segregated by loan type. The estimated fair value was based on what secondary markets are currently offering for portfolios with similar characteristics and represents a Level 2 measurement. Loans, net : For variable-rate loans that reprice frequently and with no significant change in credit risk or other optionality, fair values are based on carrying values. Fair values for all other loans are estimated by discounting contractual cash flows using estimated market discount rates, which reflect the credit and interest rate risk inherent in the loan. Collateral-dependent impaired loans are included in loans, net. The fair value of loans is considered to be a Level 3 measurement due to internally developed discounted cash flow measurements. Deposits : The fair value of deposits with no stated maturity (such as demand deposits, savings, interest and noninterest checking, and money market accounts) is, by definition, equal to the amount payable on demand at the reporting date. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market place on certificates of similar remaining maturities. Use of internal discounted cash flows provides a Level 3 fair value measurement. Long-term borrowings : The fair value of the FHLB advances is obtained from the FHLB which uses a discounted cash flow analysis based on current market rates of similar maturity debt securities and represents a Level 2 measurement. The fair values of the junior subordinated debentures and subordinated notes utilize a discounted cash flow analysis based on an estimate of current interest rates being offered by instruments with similar terms and credit quality. Since the market for these instruments is limited, the internal evaluation represents a Level 3 measurement. Lending-related commitments and derivative financial instruments : At March 31, 2020 and December 31, 2019 , the estimated fair value of letters of credit, interest rate lock commitments on residential mortgage loans, outstanding mandatory commitments to sell residential mortgage loans into the secondary market, and mirror interest rate swap agreements were not significant. Limitations : Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Fair value estimates may not be realizable in an immediate settlement of the instrument. In some instances, there are no quoted market prices for the Company’s various financial instruments, in which case fair values may be based on estimates using present value or other valuation techniques, or based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of the financial instruments, or other factors. Those techniques are significantly affected by the assumptions used, including the discount rate and estimate of future cash flows. Subsequent changes in assumptions could significantly affect the estimates. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
General | General In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the consolidated balance sheets, statements of income, comprehensive income, changes in stockholders’ equity and cash flows of Nicolet Bankshares, Inc. (the “Company” or “Nicolet”) and its subsidiaries, for the periods presented, and all such adjustments are of a normal recurring nature. All material intercompany transactions and balances have been eliminated. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the entire year. These interim consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission and, therefore, certain information and footnote disclosures normally presented in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been omitted or abbreviated. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . |
Critical Accounting Policies and Estimates | Critical Accounting Policies and Estimates Preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future. Estimates are used in accounting for, among other items, the allowance for credit losses, valuation of loans in acquisition transactions, useful lives for depreciation and amortization, fair value of financial instruments, other-than-temporary impairment calculations, valuation of deferred tax assets, uncertain income tax positions and contingencies. Estimates that are particularly susceptible to significant change for the Company include the determination of the allowance for credit losses, the determination and assessment of deferred tax assets and liabilities, and the valuation of loans acquired in acquisition transactions; therefore, these are critical accounting policies. Factors that may cause sensitivity to the aforementioned estimates include but are not limited to: external market factors such as market interest rates and employment rates, changes to operating policies and procedures, changes in applicable banking or tax regulations, and changes to deferred tax estimates. Actual results may ultimately differ from estimates, although management does not generally believe such differences would materially affect the consolidated financial statements in any individual reporting period presented. There have been no material changes or developments with respect to the assumptions or methodologies that the Company uses when applying what management believes are critical accounting policies and developing critical accounting estimates as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 , except as disclosed in Updates to Significant Accounting Policies and Recent Accounting Developments Adopted below. |
Securities Available for Sale | Securities Available for Sale : Securities classified as AFS are those securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity. Any decision to sell a security classified as AFS would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. The Company evaluates securities AFS in unrealized loss positions on a quarterly basis to determine whether the decline in fair value below the amortized costs basis (impairment) is due to credit-related factors or noncredit-related factors. In making this evaluation, management considers the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. Any impairment that is not credit-related is recognized in other comprehensive income, net of related deferred income taxes. Credit-related impairment is recognized as an allowance for credit losses (“ACL”) on the balance sheet based on the amount by which the amortized cost basis exceeds the fair value, with a corresponding charge to net income. Both the ACL and the charge to net income may be reversed if conditions change. However, if the Company intends to sell an impaired AFS security or more likely than not will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount must be recognized in net income with a corresponding adjustment to the security's amortized cost basis rather than through the establishment of an ACL. See Note 5 for additional disclosures on AFS securities. |
Loans - Originated and Acquired | Loans – Originated : Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are carried at their amortized cost basis, which is the unpaid principal balance outstanding, net of deferred loan fees and costs and any direct principal charge-offs. The Company made an accounting policy election to exclude accrued interest from the amortized cost basis of loans and report such accrued interest as part of accrued interest receivable and other assets on the consolidated balance sheets. Interest income is accrued on the unpaid principal balance using the simple interest method. The accrual of interest income on loans is discontinued when, in the opinion of management, there is reasonable doubt as to the borrower’s ability to meet payment of interest or principal when due. Loans are generally placed on nonaccrual status when contractually past due 90 days or more as to interest or principal, though may be placed in such status earlier based on the circumstances. Loans past due 90 days or more may continue on accrual only when they are well secured and/or in process of collection or renewal. When interest accrual is discontinued, all previously accrued but uncollected interest is reversed against current period interest income. Except in very limited circumstances, cash collections on nonaccrual loans are credited to the loan receivable balance and no interest income is recognized on those loans until the principal balance is paid in full. Accrual of interest may be resumed when the customer is current on all principal and interest payments and has been paying on a timely basis for a sustained period of time. See Note 6 for additional information and disclosures on loans. Loans – Acquired : Loans purchased in acquisition transactions are acquired loans, and are recorded at their estimated fair value at the acquisition date. Prior to January 1, 2020, as described in further detail in the Company’s 2019 Annual Report on Form 10-K, the Company initially classified acquired loans as either purchased credit impaired (“PCI”) loans (i.e., loans that reflect credit deterioration since origination and it is probable at acquisition that the Company will be unable to collect all contractually required payments) or purchased non-impaired loans (i.e., “performing acquired loans”). The Company estimated the fair value of PCI loans based on the amount and timing of expected principal, interest and other cash flows for each loan. The excess of the loan’s contractual principal and interest payments over all cash flows expected to be collected at acquisition was considered an amount that should not be accreted. These credit discounts (“nonaccretable marks”) were included in the determination of the initial fair value for acquired loans; therefore, no allowance for credit losses was recorded at the acquisition date. Differences between the estimated fair values and expected cash flows of acquired loans at the acquisition date that were not credit-based (“accretable marks”) were subsequently accreted to interest income over the estimated life of the loans. Subsequent to the acquisition date for PCI loans, increases in cash flows over those expected at the acquisition date resulted in a move of the discount from nonaccretable to accretable, while decreases in expected cash flows after the acquisition date were recognized through the provision for credit losses. Subsequent to January 1, 2020, acquired loans that have evidence of more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. At acquisition, an estimate of expected credit losses is made for PCD loans. This initial allowance for credit losses is allocated to individual PCD loans and added to the purchase price or acquisition date fair value to establish the initial amortized cost basis of the PCD loans. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to noncredit factors, resulting in a discount or premium that is amortized to interest income. For acquired loans not deemed PCD loans at acquisition, the difference between the initial fair value mark and the unpaid principal balance are recognized in interest income over the estimated life of the loans. In addition, an initial allowance for expected credit losses is estimated and recorded as provision expense at the acquisition date. The subsequent measurement of expected credit losses for all acquired loans is the same as the subsequent measurement of expected credit losses for originated loans. See Note 6 for additional information and disclosures on loans. |
Allowance for Credit Losses - Loans | Allowance for Credit Losses - Loans : The ACL-Loans represents management’s estimate of expected credit losses in the Company’s loan portfolio at the balance sheet date. The Company estimates the ACL-Loans based on the amortized costs basis of the underlying loan and has made an accounting policy election to exclude accrued interest from the loan’s amortized cost basis and the related measurement of the ACL-Loans. Estimating the amount of the ACL-Loans is a function of a number of factors, including but not limited to changes in the loan portfolio, net charge-offs, trends in past due and nonaccrual loans, and the level of potential problem loans, all of which may be susceptible to significant change. Prior to January 1, 2020, as described in further detail in the Company’s 2019 Annual Report on Form 10-K, the Company used an incurred loss impairment model. This methodology assessed the overall appropriateness of the allowance for credit losses and included allocations for specifically identified impaired loans and loss factors for all remaining loans, with a component primarily based on historical loss rates and another component primarily based on other qualitative factors. Impaired loans were individually assessed and measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price or the fair value of the collateral if the loan was collateral dependent. Loans that were determined not to be impaired were collectively evaluated for impairment, stratified by type and allocated loss ranges based on the Company’s actual historical loss ratios for each strata, and adjustments were also provided for certain environmental and other qualitative factors. Subsequent to January 1, 2020, the Company uses a current expected loss model (“CECL”). This methodology also considers historical loss rates and other qualitative adjustments, as well as a new forward-looking component that considers reasonable and supportable forecasts over the expected life of each loan. To develop the ACL-Loans estimate under the current expected loss model, the Company segments the loan portfolio into loan pools based on loan type and similar credit risk elements; performs an individual evaluation of PCD loans; calculates the historical loss rates for the segmented loan pools; applies the loss rates over the calculated life of the pooled loans; adjusts for forecasted macro-level economic conditions; and determines qualitative adjustments based on factors and conditions unique to Nicolet's portfolio. |
Recent Accounting Developments Adopted | Recent Accounting Developments Adopted In August 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . This ASU modifies the disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. The updated guidance was effective for annual reporting periods, including interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted the updated guidance effective January 1, 2020, with no material impact on its consolidated financial statements as the new ASU only revises disclosure requirements. See Note 9 for fair value disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments intended to improve the financial reporting by requiring earlier recognition of credit losses on loans and certain other financial assets. Topic 326 replaces the incurred loss impairment model (which recognizes losses when a probable threshold is met) with a requirement to recognize lifetime expected credit losses immediately when a financial asset is originated or purchased. The measurement of lifetime expected credit losses is based on historical experience, current conditions, and reasonable and supportable forecasts. The ASU was effective for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted the new accounting standard on January 1, 2020, as required, and recorded a cumulative-effect adjustment of $6 million to retained earnings. See Updates to Significant Accounting Policies above for changes to accounting policies and see Note 6 for additional disclosures on this new accounting pronouncement. |
Reclassifications | Reclassifications Certain amounts in the 2019 consolidated financial statements have been reclassified to conform to the 2020 presentation. |
Allowance for credit losses - Loans | The ACL-Loans represents management’s estimate of expected credit losses in the Company’s loan portfolio at the balance sheet date. To assess the appropriateness of the ACL-Loans, an allocation methodology is applied by Nicolet which focuses on evaluation of qualitative and environmental factors, including but not limited to: (i) evaluation of facts and issues related to specific loans; (ii) management’s ongoing review and grading of the loan portfolio; (iii) consideration of historical loan loss and delinquency experience on each portfolio segment; (iv) trends in past due and nonperforming loans; (v) the risk characteristics of the various loan segments; (vi) changes in the size and character of the loan portfolio; (vii) concentrations of loans to specific borrowers or industries; (viii) existing economic conditions; (ix) the fair value of underlying collateral; and (x) other qualitative and quantitative factors which could affect expected credit losses. Assessing these numerous factors involves significant judgment. Management allocates the ACL-Loans by pools of risk within each loan portfolio segment. The allocation methodology consists of the following components. First, a specific reserve is established for individually evaluated credit-deteriorated loans, which management defines as nonaccrual credit relationships over $250,000 , all loans determined to be troubled debt restructurings (“restructured loans”), plus other loans with evidence of credit deterioration. The specific reserve in the ACL-Loans for these credit deteriorated loans is equal to the aggregate collateral or discounted cash flow shortfall. Second, management allocates the ACL-Loans with historical loss rates by loan segment. The loss factors are measured on a quarterly basis and applied to each loan segment based on current loan balances and projected for their expected remaining life. Next, management allocates ACL-Loans using the qualitative factors mentioned above. Consideration is given to those current qualitative or environmental factors that are likely to cause estimated credit losses as of the evaluation date to differ from the historical loss experience of each loan segment. Lastly, management considers reasonable and supportable forecasts to assess the collectability of future cash flows. |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per common share | Presented below are the calculations for basic and diluted earnings per common share. Three Months Ended March 31, (In thousands, except per share data) 2020 2019 Net income attributable to Nicolet Bankshares, Inc. $ 10,555 $ 10,267 Weighted average common shares outstanding 10,516 9,461 Effect of dilutive common stock awards 285 297 Diluted weighted average common shares outstanding 10,801 9,758 Basic earnings per common share* $ 1.00 $ 1.09 Diluted earnings per common share* $ 0.98 $ 1.05 *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) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of weighted average assumption for stock option | The weighted average assumptions used in the Black-Scholes model for valuing stock option grants were as follows. Three Months Ended March 31, 2020 2019 Dividend yield — % — % Expected volatility 25 % — % Risk-free interest rate 1.67 % — % Expected average life 7 years 0 years Weighted average per share fair value of options $ 21.83 $ — |
Schedule of stock options outstanding | A summary of the Company’s stock option activity is summarized below. Stock Options Option Shares Outstanding Weighted Average Exercise Price Weighted Average Remaining Life (Years) Aggregate Intrinsic Value (in thousands) Outstanding - December 31, 2019 1,443,733 $ 48.75 Granted 39,500 71.89 Exercise of stock options * (38,702 ) 23.83 Forfeited — — Outstanding - March 31, 2020 1,444,531 $ 50.06 7.3 $ 10,543 Exercisable - March 31, 2020 554,331 $ 43.43 6.5 $ 6,293 * 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 three months ended March 31, 2020 , 16,671 such shares were surrendered to the Company. |
Schedule of restricted stock awards | A summary of the Company’s restricted stock activity is summarized below. Restricted Stock Weighted Average Grant Date Fair Value Restricted Shares Outstanding Outstanding - December 31, 2019 $ 44.94 22,521 Granted 72.00 2,500 Vested * 38.89 (4,500 ) Forfeited — — Outstanding - March 31, 2020 $ 49.56 20,521 * The terms of the restricted stock agreements permit the surrender of shares to the Company upon vesting in order to satisfy applicable tax withholding requirements at the minimum statutory withholding rate, and accordingly, 1,341 shares were surrendered during the three months ended March 31, 2020 . |
Securities Available for Sale (
Securities Available for Sale (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Securities, Available-for-sale [Abstract] | |
Schedule of amortized cost and fair value of securities available for sale | Amortized cost and fair value of securities available for sale are summarized as follows. March 31, 2020 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government agency securities $ 64,180 $ 288 $ 216 $ 64,252 State, county and municipals 155,700 1,661 25 157,336 Mortgage-backed securities 203,575 6,499 121 209,953 Corporate debt securities 78,023 2,516 220 80,319 Total $ 501,478 $ 10,964 $ 582 $ 511,860 December 31, 2019 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government agency securities $ 16,516 $ 4 $ 60 $ 16,460 State, county and municipals 155,501 1,049 157 156,393 Mortgage-backed securities 193,223 2,492 697 195,018 Corporate debt securities 78,009 3,422 — 81,431 Total $ 443,249 $ 6,967 $ 914 $ 449,302 |
Schedule of unrealized losses and fair value | The following table presents gross unrealized losses and the related estimated fair value of securities AFS for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position. March 31, 2020 Less than 12 months 12 months or more Total ($ in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Number of Securities U.S. government agency securities $ — $ — $ 10,854 $ 216 $ 10,854 $ 216 2 State, county and municipals 12,286 25 — — 12,286 25 30 Mortgage-backed securities 9,261 32 17,829 89 27,090 121 50 Corporate debt securities 16,777 220 — — 16,777 220 9 Total $ 38,324 $ 277 $ 28,683 $ 305 $ 67,007 $ 582 91 December 31, 2019 Less than 12 months 12 months or more Total ($ in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Number of Securities U.S. government agency securities $ 1,035 $ 2 $ 11,091 $ 58 $ 12,126 $ 60 6 State, county and municipals 22,451 132 7,605 25 30,056 157 56 Mortgage-backed securities 49,626 245 47,271 452 96,897 697 150 Corporate debt securities — — — — — — — Total $ 73,112 $ 379 $ 65,967 $ 535 $ 139,079 $ 914 212 |
Schedule of amortized cost and fair value classified by contractual maturities | The amortized cost and fair value of securities AFS by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties; as this is particularly inherent in mortgage-backed securities, these securities are not included in the maturity categories below. March 31, 2020 (in thousands) Amortized Cost Fair Value Due in less than one year $ 16,942 $ 16,982 Due in one year through five years 235,471 237,604 Due after five years through ten years 35,066 35,929 Due after ten years 10,424 11,392 297,903 301,907 Mortgage-backed securities 203,575 209,953 Securities AFS $ 501,478 $ 511,860 |
Schedule of proceeds from sale of securities AFS | Proceeds and realized gains / losses from the sale of securities AFS were as follows. Three Months Ended March 31, (in thousands) 2020 2019 Gross gains $ — $ 133 Gross losses — (120 ) Gains (losses) on sales of securities AFS, net $ — $ 13 Proceeds from sales of securities AFS $ — $ 8,076 |
Loans, Allowance for Credit L_2
Loans, Allowance for Credit Losses - Loans, and Credit Quality (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of loan composition by portfolio segment | The loan composition is summarized as follows. March 31, 2020 December 31, 2019 (in thousands) Amount % of Total Amount % of Total Commercial & industrial $ 831,257 32 % $ 806,189 31 % Owner-occupied CRE 499,705 19 496,372 19 Agricultural 95,991 3 95,450 4 CRE investment 448,758 17 443,218 17 Construction & land development 96,055 4 92,970 4 Residential construction 52,945 2 54,403 2 Residential first mortgage 432,126 17 432,167 17 Residential junior mortgage 121,105 5 122,771 5 Retail & other 29,482 1 30,211 1 Loans 2,607,424 100 % 2,573,751 100 % Less allowance for credit losses - Loans (“ACL-Loans”) 26,202 13,972 Loans, net $ 2,581,222 $ 2,559,779 Allowance for credit losses - Loans to loans 1.00 % 0.54 % |
Schedule of changes in allowance for credit losses by portfolio segment | For comparison purposes, the following table presents the balance and activity in the ACL-Loans by portfolio segment for the prior year-end period. TOTAL – Year Ended December 31, 2019 (in thousands) Commercial & industrial Owner- occupied CRE Agricultural CRE investment Construction & land development Residential construction Residential first mortgage Residential junior mortgage Retail & other Total ACL-Loans: Beginning balance $ 5,271 $ 2,847 $ 422 $ 1,470 $ 510 $ 211 $ 1,646 $ 472 $ 304 $ 13,153 Provision (61 ) 254 157 130 (96 ) 383 9 86 338 1,200 Charge-offs (159 ) (93 ) — — — (226 ) (22 ) (80 ) (347 ) (927 ) Recoveries 420 2 — — — — 36 39 49 546 Net (charge-offs) recoveries 261 (91 ) — — — (226 ) 14 (41 ) (298 ) (381 ) Ending balance $ 5,471 $ 3,010 $ 579 $ 1,600 $ 414 $ 368 $ 1,669 $ 517 $ 344 $ 13,972 As % of ACL-Loans 39 % 22 % 4 % 11 % 3 % 3 % 12 % 4 % 2 % 100 % The following table presents the balance and activity in the ACL-Loans by portfolio segment. TOTAL – Three Months Ended March 31, 2020 (in thousands) Commercial & industrial Owner- occupied CRE Agricultural CRE investment Construction & land development Residential construction Residential first mortgage Residential junior mortgage Retail & other Total ACL-Loans: Beginning balance $ 5,471 $ 3,010 $ 579 $ 1,600 $ 414 $ 368 $ 1,669 $ 517 $ 344 $ 13,972 Adoption of CECL 2,962 1,249 361 1,970 51 124 1,286 351 134 8,488 Initial PCD ACL 797 — — — — — — — — 797 Provision 1,253 163 95 795 82 (50 ) 533 102 27 3,000 Charge-offs — — — (20 ) — — — — (73 ) (93 ) Recoveries 30 — — — — — 1 3 4 38 Net (charge-offs) recoveries 30 — — (20 ) — — 1 3 (69 ) (55 ) Ending balance $ 10,513 $ 4,422 $ 1,035 $ 4,345 $ 547 $ 442 $ 3,489 $ 973 $ 436 $ 26,202 As % of ACL-Loans 40 % 17 % 4 % 16 % 2 % 2 % 13 % 4 % 2 % 100 % A roll forward of the allowance for credit losses is summarized as follows. Three Months Ended Year Ended (in thousands) March 31, 2020 March 31, 2019 December 31, 2019 Beginning balance $ 13,972 $ 13,153 $ 13,153 Adoption of CECL 8,488 — — Initial PCD ACL 797 — — Total impact for adoption of CECL 9,285 — — Provision for credit losses 3,000 200 1,200 Charge-offs (93 ) (10 ) (927 ) Recoveries 38 27 546 Net (charge-offs) recoveries (55 ) 17 (381 ) Ending balance $ 26,202 $ 13,370 $ 13,972 |
Schedule of collateral dependent loans by portfolio segment | The following table presents collateral dependent loans by portfolio segment and collateral type, including those loans with and without a related allowance allocation as of March 31, 2020 . March 31, 2020 Collateral Type (in thousands) Real Estate Other Business Assets Total Without an Allowance With an Allowance Allowance Allocation Commercial & industrial $ — $ 5,544 $ 5,544 $ 978 $ 4,566 $ 1,683 Owner-occupied CRE 3,168 — 3,168 3,168 — — Agricultural 611 921 1,532 663 869 61 CRE investment 1,029 — 1,029 1,029 — — Construction & land development 533 — 533 533 — — Residential construction — — — — — — Residential first mortgage — — — — — — Residential junior mortgage — — — — — — Retail & other — — — — — — Total loans $ 5,341 $ 6,465 $ 11,806 $ 6,371 $ 5,435 $ 1,744 |
Schedule of impaired loans by portfolio segment | The following table presents impaired loans and their respective allowance for credit loss allocations at December 31, 2019 , as determined in accordance with historical accounting guidance. Total Impaired Loans – December 31, 2019 (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Commercial & industrial $ 5,932 $ 7,950 $ 625 $ 5,405 $ 1,170 Owner-occupied CRE 3,430 4,016 — 3,677 256 Agricultural 2,134 2,172 116 2,311 37 CRE investment 2,426 2,790 — 2,497 364 Construction & land development 382 382 — 460 — Residential construction — — — — — Residential first mortgage 2,357 2,629 — 2,412 178 Residential junior mortgage 218 349 — 224 58 Retail & other 12 12 — 12 — Total $ 16,891 $ 20,300 $ 741 $ 16,998 $ 2,063 |
Schedule of past due loans by portfolio segment | The following tables present past due loans by portfolio segment. March 31, 2020 (in thousands) 30-89 Days Past Due (accruing) 90 Days & Over or nonaccrual Current Total Commercial & industrial $ 1,060 $ 6,050 $ 824,147 $ 831,257 Owner-occupied CRE 1,961 3,837 493,907 499,705 Agricultural 1 1,801 94,189 95,991 CRE investment 484 1,029 447,245 448,758 Construction & land development 210 533 95,312 96,055 Residential construction 100 — 52,845 52,945 Residential first mortgage 1,985 953 429,188 432,126 Residential junior mortgage 249 566 120,290 121,105 Retail & other 80 — 29,402 29,482 Total loans $ 6,130 $ 14,769 $ 2,586,525 $ 2,607,424 Percent of total loans 0.2 % 0.6 % 99.2 % 100.0 % December 31, 2019 (in thousands) 30-89 Days Past Due (accruing) 90 Days & Over or nonaccrual Current Total Commercial & industrial $ 1,729 $ 6,249 $ 798,211 $ 806,189 Owner-occupied CRE 112 3,311 492,949 496,372 Agricultural — 1,898 93,552 95,450 CRE investment — 1,073 442,145 443,218 Construction & land development 2,063 20 90,887 92,970 Residential construction 302 — 54,101 54,403 Residential first mortgage 2,736 1,090 428,341 432,167 Residential junior mortgage 217 480 122,074 122,771 Retail & other 110 1 30,100 30,211 Total loans $ 7,269 $ 14,122 $ 2,552,360 $ 2,573,751 Percent of total loans 0.3 % 0.5 % 99.2 % 100.0 % |
Schedule of nonaccrual loans by portfolio segment | The following table presents nonaccrual loans by portfolio segment. The nonaccrual loans without a related allowance for credit losses have been reflected in the collateral dependent loans table above. March 31, 2020 December 31, 2019 (in thousands) Nonaccrual Loans % of Total Nonaccrual Loans % of Total Commercial & industrial $ 6,050 41 % $ 6,249 44 % Owner-occupied CRE 3,837 26 3,311 23 Agricultural 1,801 12 1,898 14 CRE investment 1,029 7 1,073 8 Construction & land development 533 4 20 — Residential construction — — — — Residential first mortgage 953 6 1,090 8 Residential junior mortgage 566 4 480 3 Retail & other — — 1 — Nonaccrual loans $ 14,769 100 % $ 14,122 100 % Percent of total loans 0.6 % 0.5 % |
Schedule of loans by loan risk categories by portfolio segment | The following table presents total loans by risk categories and year of origination. March 31, 2020 Amortized Cost Basis by Origination Year (in thousands) 2020 2019 2018 2017 2016 Prior Revolving Revolving to Term TOTAL Commercial & industrial Grades 1-4 $ 45,598 $ 151,079 $ 118,171 $ 77,690 $ 31,727 $ 64,618 $ 291,990 $ — $ 780,873 Grade 5 39 3,470 7,446 576 1,479 2,830 7,845 — 23,685 Grade 6 — 23 823 4 1 37 4,946 — 5,834 Grade 7 113 2,078 1,115 1,404 1,372 7,393 7,390 — 20,865 Total $ 45,750 $ 156,650 $ 127,555 $ 79,674 $ 34,579 $ 74,878 $ 312,171 $ — $ 831,257 Owner-occupied CRE Grades 1-4 $ 21,337 $ 68,525 $ 84,981 $ 64,514 $ 50,402 $ 175,204 $ 2,340 $ — $ 467,303 Grade 5 — 576 1,706 7,882 396 6,676 488 — 17,724 Grade 6 — — — 1,749 — 56 — — 1,805 Grade 7 — 168 285 2,197 1,797 8,426 — — 12,873 Total $ 21,337 $ 69,269 $ 86,972 $ 76,342 $ 52,595 $ 190,362 $ 2,828 $ — $ 499,705 Agricultural Grades 1-4 $ 4,321 $ 7,982 $ 7,604 $ 10,793 $ 3,998 $ 26,721 $ 20,468 $ — $ 81,887 Grade 5 — — 38 179 710 4,064 89 — 5,080 Grade 6 — — — 329 392 — 49 — 770 Grade 7 — — 58 117 1,375 5,893 811 — 8,254 Total $ 4,321 $ 7,982 $ 7,700 $ 11,418 $ 6,475 $ 36,678 $ 21,417 $ — $ 95,991 CRE investment Grades 1-4 $ 29,442 $ 72,601 $ 45,017 $ 71,370 $ 44,213 $ 168,170 $ 6,238 $ — $ 437,051 Grade 5 — — 55 — 394 6,629 — — 7,078 Grade 6 — 105 — 915 656 — — — 1,676 Grade 7 — — — — 146 2,807 — — 2,953 Total $ 29,442 $ 72,706 $ 45,072 $ 72,285 $ 45,409 $ 177,606 $ 6,238 $ — $ 448,758 Construction & land development Grades 1-4 $ 7,276 $ 46,643 $ 20,176 $ 3,719 $ 2,683 $ 9,827 $ 1,678 $ — $ 92,002 Grade 5 — 219 2,699 45 — 26 — — 2,989 Grade 6 — — — — — — — — — Grade 7 — 149 — — — 915 — — 1,064 Total $ 7,276 $ 47,011 $ 22,875 $ 3,764 $ 2,683 $ 10,768 $ 1,678 $ — $ 96,055 Residential construction Grades 1-4 $ 3,495 $ 44,300 $ 3,922 $ 466 $ 29 $ 135 $ — $ — $ 52,347 Grade 5 — 542 — 56 — — — — 598 Grade 6 — — — — — — — — — Grade 7 — — — — — — — — — Total $ 3,495 $ 44,842 $ 3,922 $ 522 $ 29 $ 135 $ — $ — $ 52,945 Residential first mortgage Grades 1-4 $ 24,900 $ 79,077 $ 59,651 $ 56,748 $ 60,809 $ 142,975 $ 1,538 $ 1 $ 425,699 Grade 5 — 1,215 296 309 697 1,153 — — 3,670 Grade 6 — — — — — 2 — — 2 Grade 7 — 778 198 20 66 1,693 — — 2,755 Total $ 24,900 $ 81,070 $ 60,145 $ 57,077 $ 61,572 $ 145,823 $ 1,538 $ 1 $ 432,126 Residential junior mortgage Grades 1-4 $ 927 $ 7,017 $ 5,941 $ 1,856 $ 2,021 $ 3,844 $ 95,033 $ 3,861 $ 120,500 Grade 5 — — — — — 34 — — 34 Grade 6 — — — — — — — — — Grade 7 — — — 30 — 355 75 111 571 Total $ 927 $ 7,017 $ 5,941 $ 1,886 $ 2,021 $ 4,233 $ 95,108 $ 3,972 $ 121,105 Retail & other Grades 1-4 $ 2,438 $ 5,605 $ 2,658 $ 1,161 $ 827 $ 1,156 $ 15,637 $ — $ 29,482 Grade 5 — — — — — — — — — Grade 6 — — — — — — — — — Grade 7 — — — — — — — — — Total $ 2,438 $ 5,605 $ 2,658 $ 1,161 $ 827 $ 1,156 $ 15,637 $ — $ 29,482 Total loans $ 139,886 $ 492,152 $ 362,840 $ 304,129 $ 206,190 $ 641,639 $ 456,615 $ 3,973 $ 2,607,424 The following tables present total loans by risk categories. March 31, 2020 (in thousands) Grades 1- 4 Grade 5 Grade 6 Grade 7 Total Commercial & industrial $ 780,873 $ 23,685 $ 5,834 $ 20,865 $ 831,257 Owner-occupied CRE 467,303 17,724 1,805 12,873 499,705 Agricultural 81,887 5,080 770 8,254 95,991 CRE investment 437,051 7,078 1,676 2,953 448,758 Construction & land development 92,002 2,989 — 1,064 96,055 Residential construction 52,347 598 — — 52,945 Residential first mortgage 425,699 3,670 2 2,755 432,126 Residential junior mortgage 120,500 34 — 571 121,105 Retail & other 29,482 — — — 29,482 Total loans $ 2,487,144 $ 60,858 $ 10,087 $ 49,335 $ 2,607,424 Percent of total 95.4 % 2.3 % 0.4 % 1.9 % 100.0 % December 31, 2019 (in thousands) Grades 1- 4 Grade 5 Grade 6 Grade 7 Total Commercial & industrial $ 765,073 $ 20,199 $ 7,663 $ 13,254 $ 806,189 Owner-occupied CRE 464,661 20,855 953 9,903 496,372 Agricultural 77,082 6,785 3,275 8,308 95,450 CRE investment 430,794 8,085 2,578 1,761 443,218 Construction & land development 90,523 2,213 15 219 92,970 Residential construction 53,286 1,117 — — 54,403 Residential first mortgage 424,044 4,677 668 2,778 432,167 Residential junior mortgage 122,249 35 — 487 122,771 Retail & other 30,210 — — 1 30,211 Total loans $ 2,457,922 $ 63,966 $ 15,152 $ 36,711 $ 2,573,751 Percent of total 95.5 % 2.5 % 0.6 % 1.4 % 100.0 % |
Schedule of non accretable discount | The following table summarizes the nonaccretable discount on purchased credit impaired loans prior to the adoption of ASU 2016-13. Three Months Ended Year Ended (in thousands) March 31, 2019 December 31, 2019 Balance at beginning of period $ 6,408 $ 6,408 Acquired balance, net — 911 Accretion to loan interest income (221 ) (4,713 ) Disposals of loans — (679 ) Balance at end of period $ 6,187 $ 1,927 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles and Mortgage Servicing Rights (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill and intangible assets | A summary of goodwill and other intangibles was as follows. Three Months Ended Year Ended (in thousands) March 31, 2020 December 31, 2019 Goodwill $ 151,198 $ 151,198 Core deposit intangibles 10,031 10,897 Customer list intangibles 3,745 3,872 Other intangibles 13,776 14,769 Goodwill and other intangibles, net $ 164,974 $ 165,967 |
Schedule of goodwill | A summary of goodwill was as follows. During 2019, goodwill increased due to the Choice acquisition. See Note 2 for additional information on the Company's acquisitions. Three Months Ended Year Ended (in thousands) March 31, 2020 December 31, 2019 Goodwill: Goodwill at beginning of year $ 151,198 $ 107,366 Acquisition — 44,594 Impairment — (762 ) Goodwill at end of period $ 151,198 $ 151,198 |
Schedule of other intangible assets | Three Months Ended Year Ended (in thousands) March 31, 2020 December 31, 2019 Core deposit intangibles: Gross carrying amount $ 30,715 $ 30,715 Accumulated amortization (20,684 ) (19,818 ) Net book value $ 10,031 $ 10,897 Additions during the period $ — $ 1,700 Amortization during the period $ 866 $ 3,365 Customer list intangibles: Gross carrying amount $ 5,523 $ 5,523 Accumulated amortization (1,778 ) (1,651 ) Net book value $ 3,745 $ 3,872 Additions during the period $ — $ — Amortization during the period $ 127 $ 507 |
Schedule of mortgage servicing rights | A summary of the changes in the mortgage servicing rights asset was as follows. Three Months Ended Year Ended (in thousands) March 31, 2020 December 31, 2019 Mortgage servicing rights ("MSR") asset: MSR asset at beginning of year $ 5,919 $ 3,749 Capitalized MSR 559 2,876 MSR asset acquired — 160 Amortization during the period (284 ) (866 ) MSR asset at end of period $ 6,194 $ 5,919 Valuation allowance at beginning of year $ — $ — Additions (175 ) — Valuation allowance at end of period $ (175 ) $ — MSR asset, net $ 6,019 $ 5,919 Fair value of MSR asset at end of period $ 8,807 $ 8,420 Residential mortgage loans serviced for others $ 890,162 $ 847,756 Net book value of MSR asset to loans serviced for others 0.68 % 0.70 % |
Schedule of estimated future amortization expense for amortizing intangible assets and the MSR asset | The following table shows the estimated future amortization expense for amortizing intangible assets and the MSR asset. The projections are based on existing asset balances, the current interest rate environment and prepayment speeds as of March 31, 2020 . The actual amortization expense the Company recognizes in any given period may be significantly different depending upon acquisition or sale activities, changes in interest rates, prepayment speeds, market conditions, regulatory requirements and events or circumstances that indicate the carrying amount of an asset may not be recoverable. (in thousands) Core deposit intangibles Customer list intangibles MSR asset Year ending December 31, 2020 (remaining nine months) $ 2,127 $ 380 $ 829 2021 2,453 507 937 2022 1,987 507 930 2023 1,490 483 962 2024 1,010 449 541 2025 573 449 541 Thereafter 391 970 1,454 Total $ 10,031 $ 3,745 $ 6,194 |
Short and Long-Term Borrowings
Short and Long-Term Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of components of long-term borrowings | The components of long-term borrowings (borrowing with an original maturity greater than one year) were as follows. (in thousands) March 31, 2020 December 31, 2019 FHLB advances $ 40,046 $ 25,061 Junior subordinated debentures 30,695 30,575 Subordinated notes 12,000 11,993 Total long-term borrowings $ 82,741 $ 67,629 Percent of fixed rate long-term borrowings 70 % 64 % Percent of floating rate long-term borrowings 30 % 36 % |
Schedule of junior subordinated debentures | Junior Subordinated Debentures 3/31/2020 3/31/2020 12/31/19 (in thousands) Maturity Date Par Unamortized Discount Carrying Value Carrying Value 2004 Nicolet Bankshares Statutory Trust (1) 7/15/2034 $ 6,186 $ — $ 6,186 $ 6,186 2005 Mid-Wisconsin Financial Services, Inc. (2) 12/15/2035 10,310 (3,122 ) 7,188 7,138 2006 Baylake Corp. (3) 9/30/2036 16,598 (3,824 ) 12,774 12,715 2004 First Menasha Bancshares, Inc. (4) 3/17/2034 5,155 (608 ) 4,547 4,536 Total $ 38,249 $ (7,554 ) $ 30,695 $ 30,575 (1) The interest rate is 8.00% fixed. (2) The debentures, assumed in April 2013 as the result of an acquisition, have a floating rate of the three-month LIBOR plus 1.43% , adjusted quarterly. The interest rates were 2.17% and 3.32% as of March 31, 2020 and December 31, 2019 , respectively. (3) The debentures, assumed in April 2016 as a result of an acquisition, have a floating rate of the three-month LIBOR plus 1.35% , adjusted quarterly. The interest rates were 2.72% and 3.31% as of March 31, 2020 and December 31, 2019 , respectively. (4) The debentures, assumed in April 2017 as the result of an acquisition, have a floating rate of the three-month LIBOR plus 2.79% , adjusted quarterly. The interest rates were 3.63% and 4.69% as of March 31, 2020 and December 31, 2019 , respectively. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value on a recurring basis | The following table presents the balances of assets and liabilities measured at fair value on a recurring basis for the periods presented. (in thousands) Fair Value Measurements Using Measured at Fair Value on a Recurring Basis: Total Level 1 Level 2 Level 3 March 31, 2020 U.S. government agency securities $ 64,252 $ — $ 64,252 $ — State, county and municipals 157,336 — 157,336 — Mortgage-backed securities 209,953 — 209,953 — Corporate debt securities 80,319 — 77,189 3,130 Securities AFS $ 511,860 $ — $ 508,730 $ 3,130 Other investments (equity securities) $ 3,978 $ 3,978 $ — $ — December 31, 2019 U.S. government agency securities $ 16,460 $ — $ 16,460 $ — State, county and municipals 156,393 — 156,393 — Mortgage-backed securities 195,018 — 195,018 — Corporate debt securities 81,431 — 78,301 3,130 Securities AFS $ 449,302 $ — $ 446,172 $ 3,130 Other investments (equity securities) $ 3,375 $ 3,375 $ — $ — |
Schedule of changes in the Level 3 securities AFS measured at fair value on a recurring basis | The following table presents the changes in the Level 3 securities AFS measured at fair value on a recurring basis. (in thousands) Three Months Ended Year Ended Level 3 Fair Value Measurements: March 31, 2020 December 31, 2019 Balance at beginning of year $ 3,130 $ 8,490 Acquired balance — 300 Paydowns/Sales/Settlements — (5,660 ) Balance at end of period $ 3,130 $ 3,130 |
Schedule of assets measured at fair value on a nonrecurring basis | The following table presents the Company’s assets measured at fair value on a nonrecurring basis, aggregated by level in the fair value hierarchy within which those measurements fall. (in thousands) Fair Value Measurements Using Measured at Fair Value on a Nonrecurring Basis: Total Level 1 Level 2 Level 3 March 31, 2020 Collateral dependent loans $ 10,062 $ — $ — $ 10,062 Other real estate owned (“OREO”) 1,000 — — 1,000 MSR asset 8,807 — — 8,807 December 31, 2019 Impaired loans $ 16,150 $ — $ — $ 16,150 OREO 1,000 — — 1,000 MSR asset 8,420 — — 8,420 |
Schedule of estimated fair values of financial instruments | The carrying amounts and estimated fair values of the Company’s financial instruments are shown below. March 31, 2020 (in thousands) Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 241,960 $ 241,960 $ 241,960 $ — $ — Certificates of deposit in other banks 18,804 19,905 — 19,905 — Securities AFS 511,860 511,860 — 508,730 3,130 Other investments, including equity securities 27,176 27,176 3,978 19,260 3,938 Loans held for sale 3,929 4,006 — 4,006 — Loans, net 2,581,222 2,659,556 — — 2,659,556 BOLI 78,665 78,665 78,665 — — MSR asset 6,019 8,807 — — 8,807 Financial liabilities: Deposits $ 3,023,466 $ 3,029,747 $ — $ — $ 3,029,747 Short-term borrowings 75,000 75,000 — 75,000 — Long-term borrowings 82,741 82,958 — 40,877 42,081 December 31, 2019 (in thousands) Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 182,059 $ 182,059 $ 182,059 $ — $ — Certificates of deposit in other banks 19,305 19,310 — 19,310 — Securities AFS 449,302 449,302 — 446,172 3,130 Other investments, including equity securities 24,072 24,072 3,375 16,759 3,938 Loans held for sale 2,706 2,753 — 2,753 — Loans, net 2,559,779 2,593,110 — — 2,593,110 BOLI 78,140 78,140 78,140 — — MSR asset 5,919 8,420 — — 8,420 Financial liabilities: Deposits $ 2,954,453 $ 2,956,229 $ — $ — $ 2,956,229 Long-term borrowings 67,629 66,816 — 25,075 41,741 |
Basis of Presentation (Details)
Basis of Presentation (Details) - Accounting Standards Update 2016-13 $ in Thousands | Jan. 01, 2020USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative-effect adjustment of adoption of ASU 2016-13 | $ (6,175) |
Retained Earnings | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative-effect adjustment of adoption of ASU 2016-13 | $ (6,175) |
Acquisitions (Details)
Acquisitions (Details) $ / shares in Units, $ in Thousands | Nov. 08, 2019USD ($)$ / sharesshares | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2020$ / shares | Nov. 07, 2019 | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | |||||||
Acquisition | $ 0 | $ 44,594 | |||||
Assets | 3,732,554 | 3,577,260 | |||||
Deposits | 3,023,466 | 2,954,453 | |||||
Equity | 511,740 | $ 516,990 | $ 399,593 | $ 387,352 | |||
Merger Agreement | Choice Bancorp Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Common stock issued for consideration (in shares) | shares | 1,184,102 | ||||||
Number of common stock for each outstanding share of common stock | 0.00497 | ||||||
Value of common stock issued for consideration | $ 79,800 | ||||||
Price per share for stock issued in consideration (in dollars per share) | $ / shares | $ 67.39 | ||||||
Value of cash consideration | $ 1,700 | ||||||
Direct stock issuance costs for the merger charged against additional paid in capital | 200 | ||||||
Amount of addition in assets | 457,000 | ||||||
Amount of addition in loans | 348,000 | ||||||
Amount of addition in deposits | 289,000 | ||||||
Acquisition | 45,000 | ||||||
Merger Agreement | Choice Bancorp Inc. | Core deposit intangibles | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets assumed | $ 1,700 | ||||||
Choice Bancorp Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of assets represented by acquiree | 0.12 | ||||||
Commerce Financial Holdings, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Assets | 729,000 | ||||||
Loans | 618,000 | ||||||
Deposits | 620,000 | ||||||
Equity | 71,000 | ||||||
Advantage Community Bancshares, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Assets | 149,000 | ||||||
Loans | 94,000 | ||||||
Deposits | 126,000 | ||||||
Equity | $ 20,000 | ||||||
Scenario, Forecast | Commerce Financial Holdings, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Price per share for stock issued in consideration, cap (in dollars per share) | $ / shares | $ 82 | ||||||
Price per share for stock issued in consideration, collar (in dollars per share) | $ / shares | $ 62 | ||||||
Pro Forma | Commerce Financial Holdings, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of assets represented by acquiree | 0.16 |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net income attributable to Nicolet Bankshares, Inc. | $ 10,555 | $ 10,267 |
Weighted average common shares outstanding (in shares) | 10,515,778 | 9,461,485 |
Effect of dilutive common stock awards (in shares) | 285,000 | 297,000 |
Diluted weighted average common shares outstanding (in shares) | 10,800,636 | 9,758,351 |
Basic earnings per common share (in dollars per share) | $ 1 | $ 1.09 |
Diluted earnings per common share (in dollars per share) | $ 0.98 | $ 1.05 |
Earnings per Common Share - Nar
Earnings per Common Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Shares excluded from calculation of earnings per common share (in shares) | 0.1 | 0.1 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Feb. 28, 2019 | Jan. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares were available for grant under two plans (in shares) | 1,400,000 | |||
Shares surrendered to the Company (in shares) | 16,671 | |||
Numbers of shares surrendered (in shares) | 1,341 | |||
Stock-based employee compensation | $ 1.3 | $ 1.1 | ||
Unrecognized compensation cost | $ 12.8 | |||
Remaining vesting period over which cost expected to be recognized | 3 years 1 month 27 days | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total intrinsic value of options exercised | $ 1.8 | $ 1.1 | ||
Tax benefit for impact of share based compensation | $ 0.3 | |||
Long Term Incentive Plan 2011 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of share awards authorized (in shares) | 3,000,000 | 1,500,000 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted average assumptions (Details) - Stock Incentive Plan - Stock Options - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Expected volatility | 25.00% | 0.00% |
Risk-free interest rate | 1.67% | 0.00% |
Expected average life (in years) | 7 years | 0 years |
Weighted average per share fair value of options (in usd per share) | $ 21.83 | $ 0 |
Stock-Based Compensation - Acti
Stock-Based Compensation - Activity of stock incentive plans for options (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Option Shares Outstanding | |
Forfeited (in shares) | (16,671) |
Stock Incentive Plan | Stock Options | |
Option Shares Outstanding | |
Beginning balance outstanding (in shares) | 1,443,733 |
Granted (in shares) | 39,500 |
Exercise of stock options (in shares) | (38,702) |
Forfeited (in shares) | 0 |
Ending balance outstanding (in shares) | 1,444,531 |
Exercisable (in shares) | 554,331 |
Weighted Average Exercise Price | |
Beginning balance outstanding (in usd per share) | $ / shares | $ 48.75 |
Granted (in usd per share) | $ / shares | 71.89 |
Exercise of stock options (in usd per share) | $ / shares | 23.83 |
Forfeited (in usd per share) | $ / shares | 0 |
Ending balance outstanding (in usd per share) | $ / shares | 50.06 |
Exercisable (in usd per share) | $ / shares | $ 43.43 |
Weighted average remaining life outstanding (in years) | 7 years 3 months 14 days |
Weighted average remaining life exercisable (in years) | 6 years 6 months 18 days |
Aggregate intrinsic value outstanding | $ | $ 10,543 |
Aggregate intrinsic value exercisable | $ | $ 6,293 |
Stock-Based Compensation - Ac_2
Stock-Based Compensation - Activity of restricted stock awards (Details) - Restricted Stock | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Weighted-Average Grant Date Fair Value | |
Beginning balance outstanding (in usd per share) | $ / shares | $ 44.94 |
Granted (in usd per share) | $ / shares | 72 |
Vested (in usd per share) | $ / shares | 38.89 |
Forfeited (in usd per share) | $ / shares | 0 |
Ending balance outstanding (in usd per share) | $ / shares | $ 49.56 |
Restricted Shares Outstanding | |
Beginning balance outstanding (in shares) | shares | 22,521 |
Granted (in shares) | shares | 2,500 |
Vested (in shares) | shares | (4,500) |
Forfeited (in shares) | shares | 0 |
Ending balance outstanding (in shares) | shares | 20,521 |
Securities Available for Sale -
Securities Available for Sale - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Mar. 31, 2020 | |
Debt Securities, Available-for-sale [Abstract] | ||
Allowance for credit loss on securities AFS | $ 0 | |
Other-than-temporary impairment losses charged to earnings | $ 0 |
Securities Available for Sale_2
Securities Available for Sale - Amortized costs and fair values of debt securities available for sale (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 501,478 | $ 443,249 |
Gross Unrealized Gains | 10,964 | 6,967 |
Gross Unrealized Losses | 582 | 914 |
Fair Value | 511,860 | 449,302 |
U.S. government agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 64,180 | 16,516 |
Gross Unrealized Gains | 288 | 4 |
Gross Unrealized Losses | 216 | 60 |
Fair Value | 64,252 | 16,460 |
State, county and municipals | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 155,700 | 155,501 |
Gross Unrealized Gains | 1,661 | 1,049 |
Gross Unrealized Losses | 25 | 157 |
Fair Value | 157,336 | 156,393 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 203,575 | 193,223 |
Gross Unrealized Gains | 6,499 | 2,492 |
Gross Unrealized Losses | 121 | 697 |
Fair Value | 209,953 | 195,018 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 78,023 | 78,009 |
Gross Unrealized Gains | 2,516 | 3,422 |
Gross Unrealized Losses | 220 | 0 |
Fair Value | $ 80,319 | $ 81,431 |
Securities Available for Sale_3
Securities Available for Sale - Gross unrealized losses and the related fair value of securities available for sale (Details) $ in Thousands | Mar. 31, 2020USD ($)Security | Dec. 31, 2019USD ($)Security |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | $ 38,324 | $ 73,112 |
Less than 12 months, unrealized losses | 277 | 379 |
12 months or more, fair value | 28,683 | 65,967 |
12 months or more, unrealized losses | 305 | 535 |
Total, fair value | 67,007 | 139,079 |
Total, unrealized losses | $ 582 | $ 914 |
Total, number of securities | Security | 91 | 212 |
U.S. government agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | $ 0 | $ 1,035 |
Less than 12 months, unrealized losses | 0 | 2 |
12 months or more, fair value | 10,854 | 11,091 |
12 months or more, unrealized losses | 216 | 58 |
Total, fair value | 10,854 | 12,126 |
Total, unrealized losses | $ 216 | $ 60 |
Total, number of securities | Security | 2 | 6 |
State, county and municipals | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | $ 12,286 | $ 22,451 |
Less than 12 months, unrealized losses | 25 | 132 |
12 months or more, fair value | 0 | 7,605 |
12 months or more, unrealized losses | 0 | 25 |
Total, fair value | 12,286 | 30,056 |
Total, unrealized losses | $ 25 | $ 157 |
Total, number of securities | Security | 30 | 56 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | $ 9,261 | $ 49,626 |
Less than 12 months, unrealized losses | 32 | 245 |
12 months or more, fair value | 17,829 | 47,271 |
12 months or more, unrealized losses | 89 | 452 |
Total, fair value | 27,090 | 96,897 |
Total, unrealized losses | $ 121 | $ 697 |
Total, number of securities | Security | 50 | 150 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | $ 16,777 | $ 0 |
Less than 12 months, unrealized losses | 220 | 0 |
12 months or more, fair value | 0 | 0 |
12 months or more, unrealized losses | 0 | 0 |
Total, fair value | 16,777 | 0 |
Total, unrealized losses | $ 220 | $ 0 |
Total, number of securities | Security | 9 | 0 |
Securities Available for Sale_4
Securities Available for Sale - Amortized cost and fair values of securities available for sale at by contractual maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Due in less than one year | $ 16,942 | |
Due in one year through five years | 235,471 | |
Due after five years through ten years | 35,066 | |
Due after ten years | 10,424 | |
Single maturity date, amortized cost | 297,903 | |
Fair Value | ||
Due in less than one year | 16,982 | |
Due in one year through five years | 237,604 | |
Due after five years through ten years | 35,929 | |
Due after ten years | 11,392 | |
Single maturity date, fair value | 301,907 | |
Amortized Cost | 501,478 | $ 443,249 |
Debt Securities, Available-for-sale | 511,860 | 449,302 |
Mortgage-backed securities | ||
Amortized Cost | ||
Amortized cost | 203,575 | |
Fair Value | ||
Fair value | 209,953 | |
Amortized Cost | 203,575 | 193,223 |
Debt Securities, Available-for-sale | $ 209,953 | $ 195,018 |
Securities Available for Sale_5
Securities Available for Sale - Proceeds from the sale of securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt Securities, Available-for-sale [Abstract] | ||
Gross gains | $ 0 | $ 133 |
Gross losses | 0 | (120) |
Gains (losses) on sales of securities AFS, net | 0 | 13 |
Proceeds from sales of securities AFS | $ 0 | $ 8,076 |
Loans, Allowance for Credit L_3
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Summary of loan composition (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 2,607,424 | $ 2,573,751 | ||
Less allowance for credit losses - Loans (“ACL-Loans”) | 26,202 | 13,972 | $ 13,370 | $ 13,153 |
Loans, net | $ 2,581,222 | $ 2,559,779 | ||
Percent of total | 100.00% | 100.00% | ||
Allowance for credit losses - Loans to loans | 1.00% | 0.54% | ||
Retail & other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 29,482 | $ 30,211 | ||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 436 | $ 344 | 304 | |
Percent of total | 1.00% | 1.00% | ||
Commercial portfolio segment | Commercial & industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 831,257 | $ 806,189 | ||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 10,513 | $ 5,471 | 5,271 | |
Percent of total | 32.00% | 31.00% | ||
Commercial portfolio segment | Owner-occupied CRE | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 499,705 | $ 496,372 | ||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 4,422 | $ 3,010 | 2,847 | |
Percent of total | 19.00% | 19.00% | ||
Commercial portfolio segment | Agricultural | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 95,991 | $ 95,450 | ||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 1,035 | $ 579 | 422 | |
Percent of total | 3.00% | 4.00% | ||
Commercial real estate portfolio segment | CRE investment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 448,758 | $ 443,218 | ||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 4,345 | $ 1,600 | 1,470 | |
Percent of total | 17.00% | 17.00% | ||
Commercial real estate portfolio segment | Construction & land development | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 96,055 | $ 92,970 | ||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 547 | $ 414 | 510 | |
Percent of total | 4.00% | 4.00% | ||
Residential | Residential construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 52,945 | $ 54,403 | ||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 442 | $ 368 | 211 | |
Percent of total | 2.00% | 2.00% | ||
Residential | Residential first mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 432,126 | $ 432,167 | ||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 3,489 | $ 1,669 | 1,646 | |
Percent of total | 17.00% | 17.00% | ||
Residential | Residential junior mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 121,105 | $ 122,771 | ||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 973 | $ 517 | $ 472 | |
Percent of total | 5.00% | 5.00% |
Loans, Allowance for Credit L_4
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Narrative (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020USD ($)Loan | Dec. 31, 2019USD ($)Loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Material loans criteria for ALLL adequacy calculation | $ 250,000 | |
Number of loans classified as troubled debt | Loan | 4 | 5 |
Troubled debt restructuring current outstanding balance | $ 1,100,000 | $ 1,100,000 |
Pre-modification balance | 1,400,000 | 1,400,000 |
Financing receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Interest receivable | $ 7,000,000 | $ 7,000,000 |
Loans, Allowance for Credit L_5
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Summary of allowance for loan losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | $ 13,972 | $ 13,153 | $ 13,153 |
Provision for credit losses | 3,000 | 200 | 1,200 |
Charge-offs | (93) | (10) | (927) |
Recoveries | 38 | 27 | 546 |
Net (charge-offs) recoveries | (55) | 17 | (381) |
Ending balance | 26,202 | $ 13,370 | 13,972 |
Adoption of CECL | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 8,488 | ||
Ending balance | 8,488 | ||
Initial PCD ACL | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 797 | ||
Ending balance | 797 | ||
Total impact for adoption of CECL | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | $ 9,285 | ||
Ending balance | $ 9,285 |
Loans, Allowance for Credit L_6
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Summary of changes in ACL-Loans by portfolio segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
ACL-Loans: | |||
Beginning balance | $ 13,972 | $ 13,153 | $ 13,153 |
Provision | 3,000 | 200 | 1,200 |
Charge-offs | (93) | (10) | (927) |
Recoveries | 38 | 27 | 546 |
Net (charge-offs) recoveries | (55) | 17 | (381) |
Ending balance | $ 26,202 | 13,370 | $ 13,972 |
As % of ACL-Loans | 100.00% | 100.00% | |
Retail & other | |||
ACL-Loans: | |||
Beginning balance | $ 344 | 304 | $ 304 |
Provision | 27 | 338 | |
Charge-offs | (73) | (347) | |
Recoveries | 4 | 49 | |
Net (charge-offs) recoveries | (69) | (298) | |
Ending balance | $ 436 | $ 344 | |
As % of ACL-Loans | 2.00% | 2.00% | |
Commercial portfolio segment | Commercial & industrial | |||
ACL-Loans: | |||
Beginning balance | $ 5,471 | 5,271 | $ 5,271 |
Provision | 1,253 | (61) | |
Charge-offs | 0 | (159) | |
Recoveries | 30 | 420 | |
Net (charge-offs) recoveries | 30 | 261 | |
Ending balance | $ 10,513 | $ 5,471 | |
As % of ACL-Loans | 40.00% | 39.00% | |
Commercial portfolio segment | Owner-occupied CRE | |||
ACL-Loans: | |||
Beginning balance | $ 3,010 | 2,847 | $ 2,847 |
Provision | 163 | 254 | |
Charge-offs | 0 | (93) | |
Recoveries | 0 | 2 | |
Net (charge-offs) recoveries | 0 | (91) | |
Ending balance | $ 4,422 | $ 3,010 | |
As % of ACL-Loans | 17.00% | 22.00% | |
Commercial portfolio segment | Agricultural | |||
ACL-Loans: | |||
Beginning balance | $ 579 | 422 | $ 422 |
Provision | 95 | 157 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | |
Ending balance | $ 1,035 | $ 579 | |
As % of ACL-Loans | 4.00% | 4.00% | |
Commercial real estate portfolio segment | CRE investment | |||
ACL-Loans: | |||
Beginning balance | $ 1,600 | 1,470 | $ 1,470 |
Provision | 795 | 130 | |
Charge-offs | (20) | 0 | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | (20) | 0 | |
Ending balance | $ 4,345 | $ 1,600 | |
As % of ACL-Loans | 16.00% | 11.00% | |
Commercial real estate portfolio segment | Construction & land development | |||
ACL-Loans: | |||
Beginning balance | $ 414 | 510 | $ 510 |
Provision | 82 | (96) | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | |
Ending balance | $ 547 | $ 414 | |
As % of ACL-Loans | 2.00% | 3.00% | |
Residential | Residential first mortgage | |||
ACL-Loans: | |||
Beginning balance | $ 1,669 | 1,646 | $ 1,646 |
Provision | 533 | 9 | |
Charge-offs | 0 | (22) | |
Recoveries | 1 | 36 | |
Net (charge-offs) recoveries | 1 | 14 | |
Ending balance | $ 3,489 | $ 1,669 | |
As % of ACL-Loans | 13.00% | 12.00% | |
Residential | Residential junior mortgage | |||
ACL-Loans: | |||
Beginning balance | $ 517 | 472 | $ 472 |
Provision | 102 | 86 | |
Charge-offs | 0 | (80) | |
Recoveries | 3 | 39 | |
Net (charge-offs) recoveries | 3 | (41) | |
Ending balance | $ 973 | $ 517 | |
As % of ACL-Loans | 4.00% | 4.00% | |
Residential | Residential construction | |||
ACL-Loans: | |||
Beginning balance | $ 368 | $ 211 | $ 211 |
Provision | (50) | 383 | |
Charge-offs | 0 | (226) | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | 0 | (226) | |
Ending balance | $ 442 | $ 368 | |
As % of ACL-Loans | 2.00% | 3.00% | |
Adoption of CECL | |||
ACL-Loans: | |||
Beginning balance | $ 8,488 | ||
Ending balance | $ 8,488 | ||
Adoption of CECL | Retail & other | |||
ACL-Loans: | |||
Beginning balance | 134 | ||
Ending balance | 134 | ||
Adoption of CECL | Commercial portfolio segment | Commercial & industrial | |||
ACL-Loans: | |||
Beginning balance | 2,962 | ||
Ending balance | 2,962 | ||
Adoption of CECL | Commercial portfolio segment | Owner-occupied CRE | |||
ACL-Loans: | |||
Beginning balance | 1,249 | ||
Ending balance | 1,249 | ||
Adoption of CECL | Commercial portfolio segment | Agricultural | |||
ACL-Loans: | |||
Beginning balance | 361 | ||
Ending balance | 361 | ||
Adoption of CECL | Commercial real estate portfolio segment | CRE investment | |||
ACL-Loans: | |||
Beginning balance | 1,970 | ||
Ending balance | 1,970 | ||
Adoption of CECL | Commercial real estate portfolio segment | Construction & land development | |||
ACL-Loans: | |||
Beginning balance | 51 | ||
Ending balance | 51 | ||
Adoption of CECL | Residential | Residential first mortgage | |||
ACL-Loans: | |||
Beginning balance | 1,286 | ||
Ending balance | 1,286 | ||
Adoption of CECL | Residential | Residential junior mortgage | |||
ACL-Loans: | |||
Beginning balance | 351 | ||
Ending balance | 351 | ||
Adoption of CECL | Residential | Residential construction | |||
ACL-Loans: | |||
Beginning balance | 124 | ||
Ending balance | 124 | ||
Initial PCD ACL | |||
ACL-Loans: | |||
Beginning balance | 797 | ||
Ending balance | 797 | ||
Initial PCD ACL | Retail & other | |||
ACL-Loans: | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Initial PCD ACL | Commercial portfolio segment | Commercial & industrial | |||
ACL-Loans: | |||
Beginning balance | 797 | ||
Ending balance | 797 | ||
Initial PCD ACL | Commercial portfolio segment | Owner-occupied CRE | |||
ACL-Loans: | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Initial PCD ACL | Commercial portfolio segment | Agricultural | |||
ACL-Loans: | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Initial PCD ACL | Commercial real estate portfolio segment | CRE investment | |||
ACL-Loans: | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Initial PCD ACL | Commercial real estate portfolio segment | Construction & land development | |||
ACL-Loans: | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Initial PCD ACL | Residential | Residential first mortgage | |||
ACL-Loans: | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Initial PCD ACL | Residential | Residential junior mortgage | |||
ACL-Loans: | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Initial PCD ACL | Residential | Residential construction | |||
ACL-Loans: | |||
Beginning balance | $ 0 | ||
Ending balance | $ 0 |
Loans, Allowance for Credit L_7
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Collateral dependent loans by portfolio segment (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | $ 11,806 |
Without an Allowance | 6,371 |
With an Allowance | 5,435 |
Allowance Allocation | 1,744 |
Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 5,341 |
Other Business Assets | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 6,465 |
Retail & other | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Without an Allowance | 0 |
With an Allowance | 0 |
Allowance Allocation | 0 |
Retail & other | Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Retail & other | Other Business Assets | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Commercial portfolio segment | Commercial & industrial | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 5,544 |
Without an Allowance | 978 |
With an Allowance | 4,566 |
Allowance Allocation | 1,683 |
Commercial portfolio segment | Commercial & industrial | Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Commercial portfolio segment | Commercial & industrial | Other Business Assets | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 5,544 |
Commercial portfolio segment | Owner-occupied CRE | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 3,168 |
Without an Allowance | 3,168 |
With an Allowance | 0 |
Allowance Allocation | 0 |
Commercial portfolio segment | Owner-occupied CRE | Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 3,168 |
Commercial portfolio segment | Owner-occupied CRE | Other Business Assets | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Commercial portfolio segment | Agricultural | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 1,532 |
Without an Allowance | 663 |
With an Allowance | 869 |
Allowance Allocation | 61 |
Commercial portfolio segment | Agricultural | Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 611 |
Commercial portfolio segment | Agricultural | Other Business Assets | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 921 |
Commercial real estate portfolio segment | CRE investment | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 1,029 |
Without an Allowance | 1,029 |
With an Allowance | 0 |
Allowance Allocation | 0 |
Commercial real estate portfolio segment | CRE investment | Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 1,029 |
Commercial real estate portfolio segment | CRE investment | Other Business Assets | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Commercial real estate portfolio segment | Construction & land development | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 533 |
Without an Allowance | 533 |
With an Allowance | 0 |
Allowance Allocation | 0 |
Commercial real estate portfolio segment | Construction & land development | Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 533 |
Commercial real estate portfolio segment | Construction & land development | Other Business Assets | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Residential | Residential construction | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Without an Allowance | 0 |
With an Allowance | 0 |
Allowance Allocation | 0 |
Residential | Residential construction | Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Residential | Residential construction | Other Business Assets | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Residential first mortgage | Residential | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Without an Allowance | 0 |
With an Allowance | 0 |
Allowance Allocation | 0 |
Residential first mortgage | Residential | Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Residential first mortgage | Residential | Other Business Assets | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Residential junior mortgage | Residential | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Without an Allowance | 0 |
With an Allowance | 0 |
Allowance Allocation | 0 |
Residential junior mortgage | Residential | Real Estate | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | 0 |
Residential junior mortgage | Residential | Other Business Assets | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans | $ 0 |
Loans, Allowance for Credit L_8
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Impaired loans by portfolio segment (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment | $ 16,891 |
Unpaid Principal Balance | 20,300 |
Related Allowance | 741 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 16,998 |
Interest Income Recognized | 2,063 |
Retail & other | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment | 12 |
Unpaid Principal Balance | 12 |
Related Allowance | 0 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 12 |
Interest Income Recognized | 0 |
Commercial portfolio segment | Commercial & industrial | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment | 5,932 |
Unpaid Principal Balance | 7,950 |
Related Allowance | 625 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 5,405 |
Interest Income Recognized | 1,170 |
Commercial portfolio segment | Owner-occupied CRE | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment | 3,430 |
Unpaid Principal Balance | 4,016 |
Related Allowance | 0 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 3,677 |
Interest Income Recognized | 256 |
Commercial portfolio segment | Agricultural | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment | 2,134 |
Unpaid Principal Balance | 2,172 |
Related Allowance | 116 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 2,311 |
Interest Income Recognized | 37 |
Commercial real estate portfolio segment | CRE investment | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment | 2,426 |
Unpaid Principal Balance | 2,790 |
Related Allowance | 0 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 2,497 |
Interest Income Recognized | 364 |
Commercial real estate portfolio segment | Construction & land development | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment | 382 |
Unpaid Principal Balance | 382 |
Related Allowance | 0 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 460 |
Interest Income Recognized | 0 |
Residential | Residential first mortgage | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment | 2,357 |
Unpaid Principal Balance | 2,629 |
Related Allowance | 0 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 2,412 |
Interest Income Recognized | 178 |
Residential | Residential junior mortgage | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment | 218 |
Unpaid Principal Balance | 349 |
Related Allowance | 0 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 224 |
Interest Income Recognized | 58 |
Residential | Residential construction | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment | 0 |
Unpaid Principal Balance | 0 |
Related Allowance | 0 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 0 |
Interest Income Recognized | $ 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 | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Current | $ 2,586,525 | $ 2,552,360 |
Total | $ 2,607,424 | $ 2,573,751 |
Percent of current loans | 99.20% | 99.20% |
Percent of total loans | 100.00% | 100.00% |
30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | $ 6,130 | $ 7,269 |
Percent past due | 0.20% | 0.30% |
90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | $ 14,769 | $ 14,122 |
Percent past due | 0.60% | 0.50% |
Retail & other | ||
Financing Receivable, Past Due [Line Items] | ||
Current | $ 29,402 | $ 30,100 |
Total | 29,482 | 30,211 |
Retail & other | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 80 | 110 |
Retail & other | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 0 | 1 |
Commercial portfolio segment | Commercial & industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 824,147 | 798,211 |
Total | 831,257 | 806,189 |
Commercial portfolio segment | Commercial & industrial | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 1,060 | 1,729 |
Commercial portfolio segment | Commercial & industrial | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 6,050 | 6,249 |
Commercial portfolio segment | Owner-occupied CRE | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 493,907 | 492,949 |
Total | 499,705 | 496,372 |
Commercial portfolio segment | Owner-occupied CRE | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 1,961 | 112 |
Commercial portfolio segment | Owner-occupied CRE | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 3,837 | 3,311 |
Commercial portfolio segment | Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 94,189 | 93,552 |
Total | 95,991 | 95,450 |
Commercial portfolio segment | Agricultural | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 1 | 0 |
Commercial portfolio segment | Agricultural | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 1,801 | 1,898 |
Commercial real estate portfolio segment | CRE investment | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 447,245 | 442,145 |
Total | 448,758 | 443,218 |
Commercial real estate portfolio segment | CRE investment | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 484 | 0 |
Commercial real estate portfolio segment | CRE investment | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 1,029 | 1,073 |
Commercial real estate portfolio segment | Construction & land development | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 95,312 | 90,887 |
Total | 96,055 | 92,970 |
Commercial real estate portfolio segment | Construction & land development | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 210 | 2,063 |
Commercial real estate portfolio segment | Construction & land development | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 533 | 20 |
Residential | Residential first mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 429,188 | 428,341 |
Total | 432,126 | 432,167 |
Residential | Residential first mortgage | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 1,985 | 2,736 |
Residential | Residential first mortgage | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 953 | 1,090 |
Residential | Residential junior mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 120,290 | 122,074 |
Total | 121,105 | 122,771 |
Residential | Residential junior mortgage | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 249 | 217 |
Residential | Residential junior mortgage | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 566 | 480 |
Residential | Residential construction | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 52,845 | 54,101 |
Total | 52,945 | 54,403 |
Residential | Residential construction | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | 100 | 302 |
Residential | Residential construction | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans | $ 0 | $ 0 |
Loans, Allowance for Credit _10
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Nonaccrual loans by portfolio segment (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 14,769 | $ 14,122 |
Percent of total | 100.00% | 100.00% |
Percent of total loans | 0.60% | 0.50% |
Retail & other | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 0 | $ 1 |
Percent of total | 0.00% | 0.00% |
Commercial portfolio segment | Commercial & industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 6,050 | $ 6,249 |
Percent of total | 41.00% | 44.00% |
Commercial portfolio segment | Owner-occupied CRE | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 3,837 | $ 3,311 |
Percent of total | 26.00% | 23.00% |
Commercial portfolio segment | Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 1,801 | $ 1,898 |
Percent of total | 12.00% | 14.00% |
Commercial real estate portfolio segment | CRE investment | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 1,029 | $ 1,073 |
Percent of total | 7.00% | 8.00% |
Commercial real estate portfolio segment | Construction & land development | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 533 | $ 20 |
Percent of total | 4.00% | 0.00% |
Residential | Residential first mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 953 | $ 1,090 |
Percent of total | 6.00% | 8.00% |
Residential | Residential junior mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 566 | $ 480 |
Percent of total | 4.00% | 3.00% |
Residential | Residential construction | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 0 | $ 0 |
Percent of total | 0.00% | 0.00% |
Loans, Allowance for Credit _11
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Summary of loans by loan risk categories (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | $ 139,886 | |
Origination Year - 2019 | 492,152 | |
Origination Year - 2018 | 362,840 | |
Origination Year - 2017 | 304,129 | |
Origination Year - 2016 | 206,190 | |
Origination Year - Prior | 641,639 | |
Revolving | 456,615 | |
Revolving to Term | 3,973 | |
Total | $ 2,607,424 | $ 2,573,751 |
Percent of total | 100.00% | 100.00% |
Grades 1- 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 2,487,144 | $ 2,457,922 |
Percent of total | 95.40% | 95.50% |
Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 60,858 | $ 63,966 |
Percent of total | 2.30% | 2.50% |
Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 10,087 | $ 15,152 |
Percent of total | 0.40% | 0.60% |
Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 49,335 | $ 36,711 |
Percent of total | 1.90% | 1.40% |
Retail & other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | $ 2,438 | |
Origination Year - 2019 | 5,605 | |
Origination Year - 2018 | 2,658 | |
Origination Year - 2017 | 1,161 | |
Origination Year - 2016 | 827 | |
Origination Year - Prior | 1,156 | |
Revolving | 15,637 | |
Revolving to Term | 0 | |
Total | 29,482 | $ 30,211 |
Retail & other | Grades 1- 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 2,438 | |
Origination Year - 2019 | 5,605 | |
Origination Year - 2018 | 2,658 | |
Origination Year - 2017 | 1,161 | |
Origination Year - 2016 | 827 | |
Origination Year - Prior | 1,156 | |
Revolving | 15,637 | |
Revolving to Term | 0 | |
Total | 29,482 | 30,210 |
Retail & other | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 0 | |
Origination Year - 2016 | 0 | |
Origination Year - Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 0 | 0 |
Retail & other | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 0 | |
Origination Year - 2016 | 0 | |
Origination Year - Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 0 | 0 |
Retail & other | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 0 | |
Origination Year - 2016 | 0 | |
Origination Year - Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 0 | 1 |
Commercial portfolio segment | Commercial & industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 45,750 | |
Origination Year - 2019 | 156,650 | |
Origination Year - 2018 | 127,555 | |
Origination Year - 2017 | 79,674 | |
Origination Year - 2016 | 34,579 | |
Origination Year - Prior | 74,878 | |
Revolving | 312,171 | |
Revolving to Term | 0 | |
Total | 831,257 | 806,189 |
Commercial portfolio segment | Commercial & industrial | Grades 1- 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 45,598 | |
Origination Year - 2019 | 151,079 | |
Origination Year - 2018 | 118,171 | |
Origination Year - 2017 | 77,690 | |
Origination Year - 2016 | 31,727 | |
Origination Year - Prior | 64,618 | |
Revolving | 291,990 | |
Revolving to Term | 0 | |
Total | 780,873 | 765,073 |
Commercial portfolio segment | Commercial & industrial | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 39 | |
Origination Year - 2019 | 3,470 | |
Origination Year - 2018 | 7,446 | |
Origination Year - 2017 | 576 | |
Origination Year - 2016 | 1,479 | |
Origination Year - Prior | 2,830 | |
Revolving | 7,845 | |
Revolving to Term | 0 | |
Total | 23,685 | 20,199 |
Commercial portfolio segment | Commercial & industrial | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 23 | |
Origination Year - 2018 | 823 | |
Origination Year - 2017 | 4 | |
Origination Year - 2016 | 1 | |
Origination Year - Prior | 37 | |
Revolving | 4,946 | |
Revolving to Term | 0 | |
Total | 5,834 | 7,663 |
Commercial portfolio segment | Commercial & industrial | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 113 | |
Origination Year - 2019 | 2,078 | |
Origination Year - 2018 | 1,115 | |
Origination Year - 2017 | 1,404 | |
Origination Year - 2016 | 1,372 | |
Origination Year - Prior | 7,393 | |
Revolving | 7,390 | |
Revolving to Term | 0 | |
Total | 20,865 | 13,254 |
Commercial portfolio segment | Owner-occupied CRE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 21,337 | |
Origination Year - 2019 | 69,269 | |
Origination Year - 2018 | 86,972 | |
Origination Year - 2017 | 76,342 | |
Origination Year - 2016 | 52,595 | |
Origination Year - Prior | 190,362 | |
Revolving | 2,828 | |
Revolving to Term | 0 | |
Total | 499,705 | 496,372 |
Commercial portfolio segment | Owner-occupied CRE | Grades 1- 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 21,337 | |
Origination Year - 2019 | 68,525 | |
Origination Year - 2018 | 84,981 | |
Origination Year - 2017 | 64,514 | |
Origination Year - 2016 | 50,402 | |
Origination Year - Prior | 175,204 | |
Revolving | 2,340 | |
Revolving to Term | 0 | |
Total | 467,303 | 464,661 |
Commercial portfolio segment | Owner-occupied CRE | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 576 | |
Origination Year - 2018 | 1,706 | |
Origination Year - 2017 | 7,882 | |
Origination Year - 2016 | 396 | |
Origination Year - Prior | 6,676 | |
Revolving | 488 | |
Revolving to Term | 0 | |
Total | 17,724 | 20,855 |
Commercial portfolio segment | Owner-occupied CRE | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 1,749 | |
Origination Year - 2016 | 0 | |
Origination Year - Prior | 56 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 1,805 | 953 |
Commercial portfolio segment | Owner-occupied CRE | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 168 | |
Origination Year - 2018 | 285 | |
Origination Year - 2017 | 2,197 | |
Origination Year - 2016 | 1,797 | |
Origination Year - Prior | 8,426 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 12,873 | 9,903 |
Commercial portfolio segment | Agricultural | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 4,321 | |
Origination Year - 2019 | 7,982 | |
Origination Year - 2018 | 7,700 | |
Origination Year - 2017 | 11,418 | |
Origination Year - 2016 | 6,475 | |
Origination Year - Prior | 36,678 | |
Revolving | 21,417 | |
Revolving to Term | 0 | |
Total | 95,991 | 95,450 |
Commercial portfolio segment | Agricultural | Grades 1- 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 4,321 | |
Origination Year - 2019 | 7,982 | |
Origination Year - 2018 | 7,604 | |
Origination Year - 2017 | 10,793 | |
Origination Year - 2016 | 3,998 | |
Origination Year - Prior | 26,721 | |
Revolving | 20,468 | |
Revolving to Term | 0 | |
Total | 81,887 | 77,082 |
Commercial portfolio segment | Agricultural | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 38 | |
Origination Year - 2017 | 179 | |
Origination Year - 2016 | 710 | |
Origination Year - Prior | 4,064 | |
Revolving | 89 | |
Revolving to Term | 0 | |
Total | 5,080 | 6,785 |
Commercial portfolio segment | Agricultural | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 329 | |
Origination Year - 2016 | 392 | |
Origination Year - Prior | 0 | |
Revolving | 49 | |
Revolving to Term | 0 | |
Total | 770 | 3,275 |
Commercial portfolio segment | Agricultural | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 58 | |
Origination Year - 2017 | 117 | |
Origination Year - 2016 | 1,375 | |
Origination Year - Prior | 5,893 | |
Revolving | 811 | |
Revolving to Term | 0 | |
Total | 8,254 | 8,308 |
Commercial real estate portfolio segment | CRE investment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 29,442 | |
Origination Year - 2019 | 72,706 | |
Origination Year - 2018 | 45,072 | |
Origination Year - 2017 | 72,285 | |
Origination Year - 2016 | 45,409 | |
Origination Year - Prior | 177,606 | |
Revolving | 6,238 | |
Revolving to Term | 0 | |
Total | 448,758 | 443,218 |
Commercial real estate portfolio segment | CRE investment | Grades 1- 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 29,442 | |
Origination Year - 2019 | 72,601 | |
Origination Year - 2018 | 45,017 | |
Origination Year - 2017 | 71,370 | |
Origination Year - 2016 | 44,213 | |
Origination Year - Prior | 168,170 | |
Revolving | 6,238 | |
Revolving to Term | 0 | |
Total | 437,051 | 430,794 |
Commercial real estate portfolio segment | CRE investment | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 55 | |
Origination Year - 2017 | 0 | |
Origination Year - 2016 | 394 | |
Origination Year - Prior | 6,629 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 7,078 | 8,085 |
Commercial real estate portfolio segment | CRE investment | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 105 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 915 | |
Origination Year - 2016 | 656 | |
Origination Year - Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 1,676 | 2,578 |
Commercial real estate portfolio segment | CRE investment | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 0 | |
Origination Year - 2016 | 146 | |
Origination Year - Prior | 2,807 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 2,953 | 1,761 |
Commercial real estate portfolio segment | Construction & land development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 7,276 | |
Origination Year - 2019 | 47,011 | |
Origination Year - 2018 | 22,875 | |
Origination Year - 2017 | 3,764 | |
Origination Year - 2016 | 2,683 | |
Origination Year - Prior | 10,768 | |
Revolving | 1,678 | |
Revolving to Term | 0 | |
Total | 96,055 | 92,970 |
Commercial real estate portfolio segment | Construction & land development | Grades 1- 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 7,276 | |
Origination Year - 2019 | 46,643 | |
Origination Year - 2018 | 20,176 | |
Origination Year - 2017 | 3,719 | |
Origination Year - 2016 | 2,683 | |
Origination Year - Prior | 9,827 | |
Revolving | 1,678 | |
Revolving to Term | 0 | |
Total | 92,002 | 90,523 |
Commercial real estate portfolio segment | Construction & land development | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 219 | |
Origination Year - 2018 | 2,699 | |
Origination Year - 2017 | 45 | |
Origination Year - 2016 | 0 | |
Origination Year - Prior | 26 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 2,989 | 2,213 |
Commercial real estate portfolio segment | Construction & land development | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 0 | |
Origination Year - 2016 | 0 | |
Origination Year - Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 0 | 15 |
Commercial real estate portfolio segment | Construction & land development | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 149 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 0 | |
Origination Year - 2016 | 0 | |
Origination Year - Prior | 915 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 1,064 | 219 |
Residential | Residential first mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 24,900 | |
Origination Year - 2019 | 81,070 | |
Origination Year - 2018 | 60,145 | |
Origination Year - 2017 | 57,077 | |
Origination Year - 2016 | 61,572 | |
Origination Year - Prior | 145,823 | |
Revolving | 1,538 | |
Revolving to Term | 1 | |
Total | 432,126 | 432,167 |
Residential | Residential first mortgage | Grades 1- 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 24,900 | |
Origination Year - 2019 | 79,077 | |
Origination Year - 2018 | 59,651 | |
Origination Year - 2017 | 56,748 | |
Origination Year - 2016 | 60,809 | |
Origination Year - Prior | 142,975 | |
Revolving | 1,538 | |
Revolving to Term | 1 | |
Total | 425,699 | 424,044 |
Residential | Residential first mortgage | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 1,215 | |
Origination Year - 2018 | 296 | |
Origination Year - 2017 | 309 | |
Origination Year - 2016 | 697 | |
Origination Year - Prior | 1,153 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 3,670 | 4,677 |
Residential | Residential first mortgage | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 0 | |
Origination Year - 2016 | 0 | |
Origination Year - Prior | 2 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 2 | 668 |
Residential | Residential first mortgage | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 778 | |
Origination Year - 2018 | 198 | |
Origination Year - 2017 | 20 | |
Origination Year - 2016 | 66 | |
Origination Year - Prior | 1,693 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 2,755 | 2,778 |
Residential | Residential junior mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 927 | |
Origination Year - 2019 | 7,017 | |
Origination Year - 2018 | 5,941 | |
Origination Year - 2017 | 1,886 | |
Origination Year - 2016 | 2,021 | |
Origination Year - Prior | 4,233 | |
Revolving | 95,108 | |
Revolving to Term | 3,972 | |
Total | 121,105 | 122,771 |
Residential | Residential junior mortgage | Grades 1- 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 927 | |
Origination Year - 2019 | 7,017 | |
Origination Year - 2018 | 5,941 | |
Origination Year - 2017 | 1,856 | |
Origination Year - 2016 | 2,021 | |
Origination Year - Prior | 3,844 | |
Revolving | 95,033 | |
Revolving to Term | 3,861 | |
Total | 120,500 | 122,249 |
Residential | Residential junior mortgage | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 0 | |
Origination Year - 2016 | 0 | |
Origination Year - Prior | 34 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 34 | 35 |
Residential | Residential junior mortgage | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 0 | |
Origination Year - 2016 | 0 | |
Origination Year - Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 0 | 0 |
Residential | Residential junior mortgage | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 30 | |
Origination Year - 2016 | 0 | |
Origination Year - Prior | 355 | |
Revolving | 75 | |
Revolving to Term | 111 | |
Total | 571 | 487 |
Residential | Residential construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 3,495 | |
Origination Year - 2019 | 44,842 | |
Origination Year - 2018 | 3,922 | |
Origination Year - 2017 | 522 | |
Origination Year - 2016 | 29 | |
Origination Year - Prior | 135 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 52,945 | 54,403 |
Residential | Residential construction | Grades 1- 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 3,495 | |
Origination Year - 2019 | 44,300 | |
Origination Year - 2018 | 3,922 | |
Origination Year - 2017 | 466 | |
Origination Year - 2016 | 29 | |
Origination Year - Prior | 135 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 52,347 | 53,286 |
Residential | Residential construction | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 542 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 56 | |
Origination Year - 2016 | 0 | |
Origination Year - Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 598 | 1,117 |
Residential | Residential construction | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 0 | |
Origination Year - 2016 | 0 | |
Origination Year - Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | 0 | 0 |
Residential | Residential construction | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination Year - 2020 | 0 | |
Origination Year - 2019 | 0 | |
Origination Year - 2018 | 0 | |
Origination Year - 2017 | 0 | |
Origination Year - 2016 | 0 | |
Origination Year - Prior | 0 | |
Revolving | 0 | |
Revolving to Term | 0 | |
Total | $ 0 | $ 0 |
Loans, Allowance for Credit _12
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Summary of Non-accretable discount on purchase credit impaired ("PCI") loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2019 | |
Accretion Discount [Roll Forward] | ||
Balance at beginning of period | $ 6,408 | $ 6,408 |
Acquired balance, net | 0 | 911 |
Accretion to loan interest income | (221) | (4,713) |
Disposals of loans | 0 | (679) |
Balance at end of period | $ 6,187 | $ 1,927 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles and Mortgage Servicing Rights - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Impairment charge on goodwill | $ 0 | $ 762,000 |
Mortgage Servicing Rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Valuation allowance recorded during the period | $ 175,000 | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles and Mortgage Servicing Rights - Goodwill and other intangibles (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 151,198 | $ 151,198 | $ 107,366 |
Other intangibles | 13,776 | 14,769 | |
Goodwill and other intangibles, net | 164,974 | 165,967 | |
Core deposit intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangibles | 10,031 | 10,897 | |
Customer list intangibles: | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangibles | $ 3,745 | $ 3,872 |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles and Mortgage Servicing Rights - Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Goodwill: | ||
Goodwill at beginning of year | $ 151,198 | $ 107,366 |
Acquisition | 0 | 44,594 |
Impairment | 0 | (762) |
Goodwill at end of period | $ 151,198 | $ 151,198 |
Goodwill and Other Intangible_6
Goodwill and Other Intangibles and Mortgage Servicing Rights - Other intangible assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Net book value | $ 13,776 | $ 14,769 | |
Amortization during the period | 993 | $ 1,053 | |
Core deposit intangibles: | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 30,715 | 30,715 | |
Accumulated amortization | (20,684) | (19,818) | |
Net book value | 10,031 | 10,897 | |
Additions during the period | 0 | 1,700 | |
Amortization during the period | 866 | 3,365 | |
Customer list intangibles: | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 5,523 | 5,523 | |
Accumulated amortization | (1,778) | (1,651) | |
Net book value | 3,745 | 3,872 | |
Additions during the period | 0 | 0 | |
Amortization during the period | $ 127 | $ 507 |
Goodwill and Other Intangible_7
Goodwill and Other Intangibles and Mortgage Servicing Rights - Mortgage servicing rights (Details) - Mortgage Servicing Rights - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Mortgage servicing rights (MSR) asset: | ||
MSR asset at beginning of year | $ 5,919,000 | $ 3,749,000 |
Capitalized MSR | 559,000 | 2,876,000 |
MSR asset acquired | 0 | 160,000 |
Amortization during the period | (284,000) | (866,000) |
MSR asset at end of period | 6,194,000 | 5,919,000 |
Valuation Allowance: | ||
Valuation allowance at beginning of year | 0 | 0 |
Additions | (175,000) | 0 |
Valuation allowance at end of period | (175,000) | 0 |
MSR asset, net | 6,019,000 | 5,919,000 |
Fair value of MSR asset at end of period | 8,807,000 | 8,420,000 |
Residential mortgage loans serviced for others | $ 890,162,000 | $ 847,756,000 |
Net book value of MSR asset to loans serviced for others | 0.68% | 0.70% |
Goodwill and Other Intangible_8
Goodwill and Other Intangibles and Mortgage Servicing Rights - Estimated future amortization expense (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Net book value | $ 13,776 | $ 14,769 |
Core deposit intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
2020 (remaining nine months) | 2,127 | |
2021 | 2,453 | |
2022 | 1,987 | |
2023 | 1,490 | |
2024 | 1,010 | |
2025 | 573 | |
Thereafter | 391 | |
Net book value | 10,031 | 10,897 |
Customer list intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
2020 (remaining nine months) | 380 | |
2021 | 507 | |
2022 | 507 | |
2023 | 483 | |
2024 | 449 | |
2025 | 449 | |
Thereafter | 970 | |
Net book value | 3,745 | $ 3,872 |
MSR asset | ||
Finite-Lived Intangible Assets [Line Items] | ||
2020 (remaining nine months) | 829 | |
2021 | 937 | |
2022 | 930 | |
2023 | 962 | |
2024 | 541 | |
2025 | 541 | |
Thereafter | 1,454 | |
Net book value | $ 6,194 |
Short and Long-Term Borrowing_2
Short and Long-Term Borrowings - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument | |||
Short-term borrowings | $ 75,000,000 | $ 0 | |
Trust preferred securities qualify as Tier1 capital | $ 29,500,000 | $ 29,400,000 | |
FHLB advances | |||
Debt Instrument | |||
FHLB weighted average interest rate | 1.11% | 1.57% | |
Subordinated notes | |||
Debt Instrument | |||
Aggregate amount of subordinated notes | $ 12,000,000 | ||
Note term | 10 years | ||
Interest rate | 5.00% | ||
FHLB advances | |||
Debt Instrument | |||
Short-term borrowings | $ 75,000,000 | ||
FHLB interest rate | 0.61% |
Short and Long-Term Borrowing_3
Short and Long-Term Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument | ||
Long-term borrowings | $ 82,741 | $ 67,629 |
Percent of fixed rate long-term borrowings | 70.00% | 64.00% |
Percent of floating rate long-term borrowings | 30.00% | 36.00% |
FHLB advances | ||
Debt Instrument | ||
Long-term borrowings | $ 40,046 | $ 25,061 |
Junior subordinated debentures | ||
Debt Instrument | ||
Long-term borrowings | 30,695 | 30,575 |
Subordinated notes | ||
Debt Instrument | ||
Long-term borrowings | $ 12,000 | $ 11,993 |
Short and Long-Term Borrowing_4
Short and Long-Term Borrowings Junior Subordinated Debentures (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Junior Subordinated Debentures | ||
Carrying value | $ 82,741,000 | $ 67,629,000 |
Junior subordinated debentures | ||
Junior Subordinated Debentures | ||
Par | 38,249,000 | |
Unamortized Discount | (7,554,000) | |
Carrying value | 30,695,000 | 30,575,000 |
Junior subordinated debentures | 2005 Mid-Wisconsin Financial Services, Inc. | ||
Junior Subordinated Debentures | ||
Par | 10,310,000 | |
Unamortized Discount | (3,122,000) | |
Carrying value | $ 7,188,000 | $ 7,138,000 |
Effective percentage | 2.17% | 3.32% |
Junior subordinated debentures | 2006 Baylake Corp. | ||
Junior Subordinated Debentures | ||
Par | $ 16,598,000 | |
Unamortized Discount | (3,824,000) | |
Carrying value | $ 12,774,000 | $ 12,715,000 |
Effective percentage | 2.72% | 3.31% |
Junior subordinated debentures | 2004 First Menasha Bancshares, Inc. | ||
Junior Subordinated Debentures | ||
Par | $ 5,155,000 | |
Unamortized Discount | (608,000) | |
Carrying value | $ 4,547,000 | $ 4,536,000 |
Effective percentage | 3.63% | 4.69% |
Junior subordinated debentures | 2004 Nicolet Bankshares Statutory Trust | ||
Junior Subordinated Debentures | ||
Par | $ 6,186,000 | |
Unamortized Discount | 0 | |
Carrying value | $ 6,186,000 | $ 6,186,000 |
Stated interest rate | 8.00% | |
Junior subordinated debentures | London Interbank Offered Rate (LIBOR) | 2005 Mid-Wisconsin Financial Services, Inc. | ||
Junior Subordinated Debentures | ||
Floating interest rate | 1.43% | |
Junior subordinated debentures | London Interbank Offered Rate (LIBOR) | 2006 Baylake Corp. | ||
Junior Subordinated Debentures | ||
Floating interest rate | 1.35% | |
Junior subordinated debentures | London Interbank Offered Rate (LIBOR) | 2004 First Menasha Bancshares, Inc. | ||
Junior Subordinated Debentures | ||
Floating interest rate | 2.79% |
Fair Value Measurements - Measu
Fair Value Measurements - Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 511,860 | $ 449,302 |
U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 64,252 | 16,460 |
State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 157,336 | 156,393 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 209,953 | 195,018 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 80,319 | 81,431 |
Recurring basis fair value measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 511,860 | 449,302 |
Recurring basis fair value measurements | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 64,252 | 16,460 |
Recurring basis fair value measurements | State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 157,336 | 156,393 |
Recurring basis fair value measurements | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 209,953 | 195,018 |
Recurring basis fair value measurements | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 80,319 | 81,431 |
Recurring basis fair value measurements | Other investments (equity securities) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments (equity securities) | 3,978 | 3,375 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 1 | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 1 | State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 1 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 1 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 1 | Other investments (equity securities) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments (equity securities) | 3,978 | 3,375 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 508,730 | 446,172 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 2 | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 64,252 | 16,460 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 2 | State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 157,336 | 156,393 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 2 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 209,953 | 195,018 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 2 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 77,189 | 78,301 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 2 | Other investments (equity securities) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments (equity securities) | 0 | 0 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 3,130 | 3,130 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 3 | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 3 | State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 3 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 3 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 3,130 | 3,130 |
Recurring basis fair value measurements | Fair Value Measurements Using Level 3 | Other investments (equity securities) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
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) - Available-for-sale Securities - Level 3 - Recurring basis fair value measurements - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Level 3 Fair Value Measurements: | ||
Balance at beginning of year | $ 3,130 | $ 8,490 |
Acquired balance | 0 | 300 |
Paydowns/Sales/Settlements | 0 | (5,660) |
Balance at end of period | $ 3,130 | $ 3,130 |
Fair Value Measurements - Mea_2
Fair Value Measurements - Measured at Fair Value on Nonrecurring Basis (Details) - Measured at Fair Value on a Nonrecurring Basis - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 10,062 | |
Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 16,150 | |
Other real estate owned (“OREO”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 1,000 | 1,000 |
MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 8,807 | 8,420 |
Fair Value Measurements Using Level 1 | Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | |
Fair Value Measurements Using Level 1 | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | |
Fair Value Measurements Using Level 1 | Other real estate owned (“OREO”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Fair Value Measurements Using Level 1 | MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Fair Value Measurements Using Level 2 | Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | |
Fair Value Measurements Using Level 2 | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | |
Fair Value Measurements Using Level 2 | Other real estate owned (“OREO”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Fair Value Measurements Using Level 2 | MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Fair Value Measurements Using Level 3 | Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 10,062 | |
Fair Value Measurements Using Level 3 | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 16,150 | |
Fair Value Measurements Using Level 3 | Other real estate owned (“OREO”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 1,000 | 1,000 |
Fair Value Measurements Using Level 3 | MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 8,807 | $ 8,420 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of carrying amounts and estimated fair values of financial instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financial assets: | ||
Securities AFS | $ 511,860 | $ 449,302 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 241,960 | 182,059 |
Certificates of deposit in other banks | 18,804 | 19,305 |
Securities AFS | 511,860 | 449,302 |
Other investments, including equity securities | 27,176 | 24,072 |
Loans held for sale | 3,929 | 2,706 |
Loans, net | 2,581,222 | 2,559,779 |
BOLI | 78,665 | 78,140 |
MSR asset | 6,019 | 5,919 |
Financial liabilities: | ||
Deposits | 3,023,466 | 2,954,453 |
Short-term borrowings | 75,000 | |
Long-term borrowings | 82,741 | 67,629 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 241,960 | 182,059 |
Certificates of deposit in other banks | 19,905 | 19,310 |
Securities AFS | 511,860 | 449,302 |
Other investments, including equity securities | 27,176 | 24,072 |
Loans held for sale | 4,006 | 2,753 |
Loans, net | 2,659,556 | 2,593,110 |
BOLI | 78,665 | 78,140 |
MSR asset | 8,807 | 8,420 |
Financial liabilities: | ||
Deposits | 3,029,747 | 2,956,229 |
Short-term borrowings | 75,000 | |
Long-term borrowings | 82,958 | 66,816 |
Estimated Fair Value | Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 241,960 | 182,059 |
Certificates of deposit in other banks | 0 | 0 |
Securities AFS | 0 | 0 |
Other investments, including equity securities | 3,978 | 3,375 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
BOLI | 78,665 | 78,140 |
MSR asset | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | |
Long-term borrowings | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposit in other banks | 19,905 | 19,310 |
Securities AFS | 508,730 | 446,172 |
Other investments, including equity securities | 19,260 | 16,759 |
Loans held for sale | 4,006 | 2,753 |
Loans, net | 0 | 0 |
BOLI | 0 | 0 |
MSR asset | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Short-term borrowings | 75,000 | |
Long-term borrowings | 40,877 | 25,075 |
Estimated Fair Value | Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposit in other banks | 0 | 0 |
Securities AFS | 3,130 | 3,130 |
Other investments, including equity securities | 3,938 | 3,938 |
Loans held for sale | 0 | 0 |
Loans, net | 2,659,556 | 2,593,110 |
BOLI | 0 | 0 |
MSR asset | 8,807 | 8,420 |
Financial liabilities: | ||
Deposits | 3,029,747 | 2,956,229 |
Short-term borrowings | 0 | |
Long-term borrowings | $ 42,081 | $ 41,741 |