Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 23, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-37700 | ||
Entity Registrant Name | NICOLET BANKSHARES, INC | ||
Entity Incorporation, State or Country Code | WI | ||
Entity Tax Identification Number | 47-0871001 | ||
Entity Address, Address Line One | 111 North Washington Street | ||
Entity Address, City or Town | Green Bay | ||
Entity Address, State or Province | WI | ||
Entity Address, Postal Zip Code | 54301 | ||
City Area Code | 920 | ||
Local Phone Number | 430-1400 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | NCBS | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 613 | ||
Entity Common Stock, Shares Outstanding | 13,589,091 | ||
Documents Incorporated by Reference | Portions of the Proxy Statement (the “2022 Proxy Statement”) for the 2022 Annual Meeting of Shareholders to be held on May 9, 2022, are incorporated by reference into Part III of this Annual Report on Form 10-K by reference. | ||
Entity Central Index Key | 0001174850 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Audit Information [Abstract] | |||
Auditor Name | BKD, LLP | WIPFLI LLP | WIPFLI LLP |
Auditor Location | Springfield, Missouri | Atlanta, Georgia | Atlanta, Georgia |
Auditor Firm ID | 686 | 344 | 344 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | |
Assets | |||
Cash and due from banks | $ 209,349,000 | $ 88,460,000 | |
Interest-earning deposits | 385,943,000 | 714,399,000 | |
Federal funds sold | 0 | 0 | |
Cash and cash equivalents | [1] | 595,292,000 | 802,859,000 |
Certificates of deposit in other banks | 21,920,000 | 29,521,000 | |
Fair Value | 921,661,000 | 539,337,000 | |
Securities held to maturity (“HTM”), at amortized cost | 651,803,000 | 0 | |
Other investments | 44,008,000 | 27,619,000 | |
Loans held for sale | 6,447,000 | 21,450,000 | |
Other assets held for sale | 199,833,000 | 0 | |
Loans | 4,621,836,000 | 2,789,101,000 | |
Allowance for credit losses - loans (“ACL-Loans”) | (49,672,000) | (32,173,000) | |
Loans, net | 4,572,164,000 | 2,756,928,000 | |
Premises and equipment, net | 94,566,000 | 59,944,000 | |
Bank owned life insurance (“BOLI”) | 134,476,000 | 83,262,000 | |
Goodwill and other intangibles, net | 339,492,000 | 175,353,000 | |
Accrued interest receivable and other assets | 113,375,000 | 55,516,000 | |
Total assets | 7,695,037,000 | 4,551,789,000 | |
Liabilities: | |||
Noninterest-bearing demand deposits | 1,975,705,000 | 1,212,787,000 | |
Interest-bearing deposits | 4,490,211,000 | 2,697,612,000 | |
Total deposits | 6,465,916,000 | 3,910,399,000 | |
Short-term borrowings | 0 | 0 | |
Long-term borrowings | 216,915,000 | 53,869,000 | |
Other liabilities held for sale | 51,586,000 | 0 | |
Accrued interest payable and other liabilities | 68,729,000 | 48,332,000 | |
Total liabilities | 6,803,146,000 | 4,012,600,000 | |
Stockholders’ Equity: | |||
Common stock | 140,000 | 100,000 | |
Additional paid-in capital | 575,045,000 | 273,390,000 | |
Retained earnings | 313,604,000 | 252,952,000 | |
Accumulated other comprehensive income (loss) | 3,102,000 | 12,747,000 | |
Total stockholders’ equity | 891,891,000 | 539,189,000 | |
Total liabilities and stockholders’ equity | $ 7,695,037,000 | $ 4,551,789,000 | |
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) | 13,994,079 | 10,011,342 | |
Common shares issued (in shares) | 14,019,880 | 10,030,267 | |
[1] | Cash and cash equivalents at December 31, 2021 included restricted cash of $1.9 million pledged as collateral on interest rate swaps and no reserve balance was required with the Federal Reserve. At December 31, 2020 cash and cash equivalents included restricted cash of $1.9 million pledged as collateral on interest rate swaps and no reserve balance was required with the Federal Reserve, while at December 31, 2019, cash and cash equivalents included $6.0 million for the reserve balance required with the Federal Reserve and $1.3 million was pledged as collateral on interest rate swaps. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Interest income: | |||
Loans, including loan fees | $ 156,559 | $ 136,372 | $ 125,524 |
Investment securities: | |||
Taxable | 9,934 | 8,118 | 7,584 |
Tax-exempt | 2,157 | 2,101 | 2,075 |
Other interest income | 2,909 | 2,611 | 3,405 |
Total interest income | 171,559 | 149,202 | 138,588 |
Interest expense: | |||
Deposits | 10,448 | 16,641 | 18,965 |
Short-term borrowings | 1 | 66 | 5 |
Long-term borrowings | 3,155 | 3,157 | 3,540 |
Total interest expense | 13,604 | 19,864 | 22,510 |
Net interest income | 157,955 | 129,338 | 116,078 |
Provision for credit losses | 14,900 | 10,300 | 1,200 |
Net interest income after provision for credit losses | 143,055 | 119,038 | 114,878 |
Noninterest income: | |||
Mortgage income, net | 22,155 | 29,807 | 11,878 |
BOLI income | 2,380 | 2,710 | 2,369 |
Asset gains (losses), net | 4,181 | (1,805) | 7,897 |
Other income | 4,545 | 4,492 | 5,559 |
Total noninterest income | 67,364 | 62,626 | 53,367 |
Noninterest expense: | |||
Personnel | 70,618 | 57,121 | 54,437 |
Occupancy, equipment and office | 21,058 | 16,718 | 14,788 |
Business development and marketing | 5,403 | 5,396 | 5,685 |
Data processing | 11,990 | 10,495 | 9,950 |
Intangibles amortization | 3,494 | 3,567 | 3,872 |
FDIC assessments | 2,035 | 707 | 593 |
Merger-related expense | 5,651 | 1,020 | 100 |
Other expense | 9,048 | 5,695 | 7,374 |
Total noninterest expense | 129,297 | 100,719 | 96,799 |
Income before income tax expense | 81,122 | 80,945 | 71,446 |
Income tax expense | 20,470 | 20,476 | 16,458 |
Net income | 60,652 | 60,469 | 54,988 |
Less: Net income attributable to noncontrolling interest | 0 | 347 | 347 |
Net income attributable to Nicolet Bankshares, Inc. | $ 60,652 | $ 60,122 | $ 54,641 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 5.65 | $ 5.82 | $ 5.71 |
Diluted (in dollars per share) | $ 5.44 | $ 5.70 | $ 5.52 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 10,735,605 | 10,337,138 | 9,561,978 |
Diluted (in shares) | 11,144,866 | 10,541,251 | 9,900,319 |
Trust services fee income | |||
Noninterest income: | |||
Fees and commissions | $ 7,774 | $ 6,463 | $ 6,227 |
Brokerage fee income | |||
Noninterest income: | |||
Fees and commissions | 12,143 | 9,753 | 8,115 |
Service charges on deposit accounts | |||
Noninterest income: | |||
Fees and commissions | 5,023 | 4,208 | 4,824 |
Card interchange income | |||
Noninterest income: | |||
Fees and commissions | $ 9,163 | $ 6,998 | $ 6,498 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 60,652 | $ 60,469 | $ 54,988 |
Unrealized gains (losses) on securities AFS: | |||
Net unrealized holding gains (losses) | (13,495) | 11,803 | 13,758 |
Net (gains) losses included in income | 283 | (395) | 22 |
Income tax (expense) benefit | 3,567 | (3,079) | (3,722) |
Total other comprehensive income (loss), net of tax | (9,645) | 8,329 | 10,058 |
Comprehensive income | $ 51,007 | $ 68,798 | $ 65,046 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | County Bancorp, Inc. | Mackinac Financial Corporation | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Common StockCounty Bancorp, Inc. | Common StockMackinac Financial Corporation | Additional Paid-In Capital | Additional Paid-In CapitalCounty Bancorp, Inc. | Additional Paid-In CapitalMackinac Financial Corporation | 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 | 54,988 | 54,641 | 347 | ||||||||||
Other comprehensive income (loss) | 10,058 | 10,058 | |||||||||||
Stock-based compensation expense | 5,038 | 5,038 | |||||||||||
Exercise of stock options, net | 8,150 | 3 | 8,147 | ||||||||||
Issuance of common stock in acquisitions, net of capitalized issuance costs | 79,634 | 12 | 79,622 | ||||||||||
Issuance of common stock | 592 | 592 | |||||||||||
Purchase and retirement of common stock | (28,460) | (4) | (28,456) | ||||||||||
Distribution to noncontrolling interest | (362) | (362) | |||||||||||
Ending balance at Dec. 31, 2019 | $ 516,990 | $ (6,175) | 106 | 312,733 | 199,005 | 4,418 | 728 | ||||||
Comprehensive income: | |||||||||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 [Member] | ||||||||||||
Net income | $ 60,469 | 60,122 | 347 | ||||||||||
Other comprehensive income (loss) | 8,329 | 8,329 | |||||||||||
Stock-based compensation expense | 5,700 | 5,700 | |||||||||||
Exercise of stock options, net | 1,474 | 0 | 1,474 | ||||||||||
Issuance of common stock | 581 | 581 | |||||||||||
Purchase and retirement of common stock | (42,088) | (6) | (42,082) | ||||||||||
Purchase of noncontrolling interest | (5,876) | (5,016) | (860) | ||||||||||
Distribution to noncontrolling interest | (215) | (215) | |||||||||||
Ending balance at Dec. 31, 2020 | 539,189 | 100 | 273,390 | 252,952 | 12,747 | 0 | |||||||
Comprehensive income: | |||||||||||||
Net income | 60,652 | 60,652 | 0 | ||||||||||
Other comprehensive income (loss) | (9,645) | (9,645) | |||||||||||
Stock-based compensation expense | 7,307 | 7,307 | |||||||||||
Exercise of stock options, net | 1,837 | 1 | 1,836 | ||||||||||
Issuance of common stock in acquisitions, net of capitalized issuance costs | $ 175,155 | $ 179,434 | $ 24 | $ 23 | $ 175,131 | $ 179,411 | |||||||
Issuance of common stock | 545 | 545 | |||||||||||
Purchase and retirement of common stock | (62,583) | (8) | (62,575) | ||||||||||
Ending balance at Dec. 31, 2021 | $ 891,891 | $ 140 | $ 575,045 | $ 313,604 | $ 3,102 | $ 0 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2019 | |
Common Stock Issued, Capitalized Issuance Costs | $ 163 | |
County Bancorp, Inc. | ||
Common Stock Issued, Capitalized Issuance Costs | $ 397 | |
Mackinac Financial Corporation | ||
Common Stock Issued, Capitalized Issuance Costs | $ 392 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Cash Flows From Operating Activities: | ||||||
Net income | $ 60,652 | $ 60,469 | $ 54,988 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation, amortization and accretion | 13,857 | 10,685 | 7,311 | |||
Provision for credit losses | 14,900 | 10,300 | 1,200 | |||
Provision for deferred taxes | 6,332 | 3,127 | (2,652) | |||
Increase in cash surrender value of life insurance | (2,380) | (2,199) | (1,967) | |||
Stock-based compensation expense | 7,307 | 5,700 | 5,038 | |||
Assets (gains) losses, net | (4,181) | 1,805 | (7,897) | |||
Gain on sale of loans held for sale, net | (20,468) | (29,966) | (11,244) | |||
Proceeds from sale of loans held for sale | 650,573 | 854,608 | 425,530 | |||
Origination of loans held for sale | (619,431) | (848,337) | (418,229) | |||
Net change in accrued interest receivable and other assets | (10,531) | 6,991 | (2,951) | |||
Net change in accrued interest payable and other liabilities | 1,024 | 5,716 | 9,010 | |||
Net cash provided by (used in) operating activities | 97,654 | 78,899 | 58,137 | |||
Cash Flows From Investing Activities: | ||||||
Net (increase) decrease in certificates of deposit in other banks | 10,968 | 9,167 | (1,924) | |||
Purchases of securities AFS | (299,746) | (170,518) | (95,627) | |||
Purchases of securities HTM | (569,910) | |||||
Proceeds from sales of securities AFS | 42,973 | 19,045 | 23,405 | |||
Proceeds from calls and maturities of investment securities | 167,024 | 94,818 | 53,933 | |||
Net (increase) decrease in loans | (76,427) | (125,020) | (57,156) | |||
Purchases of other investments | (13,432) | (4,360) | (2,669) | |||
Proceeds from sales of other investments | 10,203 | 17,144 | ||||
Net increase in premises and equipment | (12,791) | (10,791) | (4,392) | |||
Proceeds from sales of other real estate and other assets | 2,743 | 343 | 457 | |||
Purchase of BOLI | (5,000) | |||||
Proceeds from redemption of BOLI | 440 | 1,348 | ||||
Net cash paid in business combinations | 367,797 | (21,820) | 7,331 | |||
Net cash provided by (used in) investing activities | (370,598) | (208,696) | (63,150) | |||
Cash Flows From Financing Activities: | ||||||
Net increase (decrease) in deposits | 210,375 | 815,094 | 49,259 | |||
Net increase (decrease) in short-term borrowings | (4,233) | |||||
Proceeds from long-term borrowings | 103,953 | 367,842 | ||||
Repayments of long-term borrowings | (187,961) | (384,091) | (87,237) | |||
Distribution to noncontrolling interest | (215) | (362) | ||||
Purchase of noncontrolling interest | (8,000) | |||||
Capitalized issuance costs, net | (789) | (163) | ||||
Purchase and retirement of common stock | (62,583) | (42,088) | (28,460) | |||
Proceeds from issuance of common stock, net | 2,382 | 2,055 | 8,742 | |||
Net cash provided by (used in) financing activities | 65,377 | 750,597 | (62,454) | |||
Net increase (decrease) in cash and cash equivalents | (207,567) | 620,800 | (67,467) | |||
Cash and cash equivalents: | ||||||
Beginning cash and cash equivalents | 802,859 | [1] | 182,059 | [1] | 249,526 | |
Ending cash and cash equivalents | [1] | 595,292 | 802,859 | 182,059 | ||
Supplemental Disclosures of Cash Flow Information: | ||||||
Cash paid for interest | 10,882 | 23,485 | 22,334 | |||
Cash paid for taxes | 24,341 | 21,969 | 16,140 | |||
Transfer of loans and bank premises to other real estate owned | 8,177 | 2,608 | 1,025 | |||
Capitalized mortgage servicing rights | 4,329 | 5,256 | 2,876 | |||
Acquisitions: | ||||||
Fair value of assets acquired | 2,968,000 | 160,000 | 412,000 | |||
Fair value of liabilities assumed | 2,666,000 | 146,000 | 377,000 | |||
Net assets acquired | 302,000 | $ 14,000 | 35,000 | |||
Common stock issued in acquisitions | $ 355,378 | $ 79,797 | ||||
[1] | Cash and cash equivalents at December 31, 2021 included restricted cash of $1.9 million pledged as collateral on interest rate swaps and no reserve balance was required with the Federal Reserve. At December 31, 2020 cash and cash equivalents included restricted cash of $1.9 million pledged as collateral on interest rate swaps and no reserve balance was required with the Federal Reserve, while at December 31, 2019, cash and cash equivalents included $6.0 million for the reserve balance required with the Federal Reserve and $1.3 million was pledged as collateral on interest rate swaps. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Cash Flows [Abstract] | |||
Restricted cash pledged as collateral | $ 1,900,000 | $ 1,900,000 | $ 1,300,000 |
Restricted cash | $ 0 | $ 0 | $ 6,000,000 |
NATURE OF BUSINESS AND SIGNIFIC
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Nature of Banking Activities and Subsidiaries : Nicolet Bankshares, Inc. (the “Company” or “Nicolet”) was incorporated on April 5, 2000, to serve as the holding company and sole shareholder of Nicolet National Bank (the “Bank”). The Bank opened for business on November 1, 2000. Since its opening in late 2000, Nicolet has supplemented its organic growth with branch purchase and acquisition transactions. See Note 2 for additional information on the Company’s recent acquisitions. At December 31, 2021, the Company had three wholly owned subsidiaries, the Bank, Nicolet Advisory Services, LLC (“Nicolet Advisory”), and Nicolet Insurance Services, LLC (“Nicolet Insurance”). At December 31, 2021, the Bank wholly owns an investment subsidiary based in Nevada, a subsidiary that provides a web-based investment management platform for financial advisor trades and related activity, and an entity that owns the building in which Nicolet is headquartered, Nicolet Joint Ventures, LLC (the “JV”). The JV was owned 50% by a real estate development and investment firm (the “Firm”) through the JV until late 2020 when the Bank became the 100% owner and sole managing member of the JV. The Firm is considered a related party, as one of its principals is a Board member and shareholder of the Company. See Note 15 for additional related party disclosures, including details of the 50% interest purchased from the Firm. Nicolet Advisory is a registered investment advisor subsidiary that provides brokerage and investment advisory services to customers. In late 2020, to improve process efficiencies and organizational structure, the Company dissolved its wholly owned subsidiary, Brookfield Investment Partners, LLC, which provided limited investment services (transactional and strategy) to a few smaller banks, and Nicolet Advisory assumed those additional investment services contracts. Nicolet Insurance, acquired in 2021, was formed to facilitate the delivery of a crop insurance product associated with Nicolet’s agricultural lending. Principles of Consolidation : The consolidated financial statements of the Company include the accounts of its subsidiaries. The JV underlies the noncontrolling interest reflected in the consolidated financial statements until late 2020 when the Bank purchased the remaining interest as discussed in Note 1 above under Nature of Banking Activities and Subsidiaries. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and conform to general practices within the banking industry. All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements. Results of operations of companies purchased, if any, are included from the date of acquisition. Operating Segment : The consolidated income of the Company is derived principally from the Bank, which conducts lending (primarily commercial and agricultural-based loans, as well as residential and consumer loans) and deposit gathering (including other banking- and deposit-related products and services, such as ATMs, safe deposit boxes, check cashing, wires, and debit cards) to businesses, consumers and governmental units principally in its trade area of northeast and central Wisconsin, and northern Michigan and the upper peninsula of Michigan, trust services, brokerage services (delivered through the Bank and Nicolet Advisory), and the support to deliver, fund and manage all such banking and wealth management services to its customer base. The individual contribution from wealth management was not significant to the consolidated balance sheet or net income for 2021, 2020, or 2019. While the chief operating decision makers monitor the revenue streams of the various products and services, and evaluate costs, balance sheet positions and quality, all such products, services and activities are directly or indirectly related to the business of community banking, with no regular, formal or material segment delineations. Operations are managed and financial performance is evaluated on a company-wide basis, and accordingly, all the financial service operations are considered by management to be aggregated in one reportable operating segment. Use of Estimates : Preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future. Estimates are used in accounting for, among other items, the allowance for credit losses, valuation of loans in acquisition transactions, useful lives for depreciation and amortization, fair value of financial instruments, impairment calculations, valuation of deferred tax assets, uncertain income tax positions, and contingencies. Estimates that are particularly susceptible to significant change for the Company include the determination of the allowance for credit losses-loans, 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. Business Combinations : The Company accounts for business combinations under the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations (“ASC 805”). The Company recognizes the full fair value of the assets acquired and liabilities assumed and immediately expenses transaction costs. If the amount of consideration exceeds the fair value of assets purchased less the fair value of liabilities assumed, goodwill is recorded. Alternatively, if the amount by which the fair value of assets purchased exceeds the fair value of liabilities assumed and consideration paid, a gain (“bargain purchase gain”) is recorded. Fair values are subject to refinement for up to one year after the closing date of an acquisition as information relative to closing date fair values becomes available. Results of operations of the acquired business are included in the statements of income from the effective date of the acquisition. Additional information regarding recent acquisitions is provided in Note 2. Cash and Cash Equivalents : For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash and due from banks, interest-earning deposits in other banks with original maturities of less than 90 days, if any, and federal funds sold. The Bank maintains amounts in due from banks which, at times, may exceed federally insured limits. Management monitors these correspondent relationships. The Bank has not experienced any losses in such accounts. The Bank may have restrictions on cash and due from banks as it is required to maintain certain vault cash and reserve balances with the Federal Reserve Bank to meet specific reserve requirements. At December 31, 2021 and 2020, no reserve balance was required with the Federal Reserve Bank as the Federal Reserve’s board authorized a reduction to the reserve requirement ratios to 0% effective March 26, 2020 to provide monetary stimulus in response to the economic disruptions resulting from the pandemic. In addition, cash and cash equivalents includes restricted cash of $1.9 million pledged as collateral on an interest rate swap at both December 31, 2021 and 2020. Securities Available for Sale : Securities are classified as AFS on the consolidated balance sheets at the time of purchase and include 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. Securities classified as AFS are carried at fair value, with unrealized gains or losses, net of related deferred income taxes, reported as increases or decreases in accumulated other comprehensive income. Realized gains or losses on sales of securities AFS (using the specific identification method) are included in the consolidated statements of income under asset gains (losses), net. Premiums and discounts are amortized or accreted into interest income over the estimated life of the related securities using the effective interest method. Management evaluates securities AFS in unrealized loss positions on a quarterly basis to determine whether the decline in fair value below the amortized cost 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 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 must be recognized in net income with a corresponding adjustment to the security’s amortized cost basis rather than through the establishment on an ACL. See Note 3 for additional disclosures on AFS securities. Securities Held to Maturity : Securities are classified as HTM on the consolidated balance sheets at the time of purchase and include those securities that the Company has both the positive intent and ability to hold to maturity. HTM securities are carried at amortized cost on the consolidated balance sheets. Premiums and discounts are amortized or accreted into interest income over the estimated life of the related securities using the effective interest method. Management evaluates securities HTM on a quarterly basis to determine whether an ACL is necessary. In making this determination, management considers the facts and circumstances of the underlying investment securities. The ACL for HTM securities, if deemed necessary, evaluates expected credit losses on HTM securities by security type, aggregated by similar risk characteristics, and considers historical credit loss information as adjusted for current conditions and supportable forecasts. See Note 3 for additional disclosures on HTM securities. Other Investments : Other investments include equity securities with readily determinable fair values, “restricted” equity securities, and private company securities. At December 31, 2021, other investments included $5.7 million of equity securities which are carried at their readily determinable fair values, $32.1 million of “restricted“ equity securities, and $6.2 million of private company securities. As a member of the Federal Reserve Bank System and the Federal Home Loan Bank (“FHLB”) System, the Bank is required to maintain an investment in the capital stock of these entities. These equity securities are “restricted” in that they can only be sold back to the respective institutions or another member institution at par. Therefore, they are less liquid than other exchange traded equity securities. As no ready market exists for these stocks, and they have no quoted market value, these investments are carried at cost. Also included are investments in other private companies that do not have quoted market prices, which are carried at cost less impairment charges, if any. Management’s evaluation of these other investments for impairment includes consideration of the financial condition and other available relevant information of the issuer. Loans Held for Sale : Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value as determined on an aggregate basis and generally consist of current production of certain fixed-rate residential first mortgages. The amount by which cost exceeds fair value is recorded as a valuation allowance and charged to earnings. Changes, if any, in the valuation allowance are included in earnings in the period in which the change occurs. As of December 31, 2021 and 2020, no valuation allowance was necessary. Loans held for sale may be sold servicing retained or servicing released, and are generally sold without recourse. The carrying value of mortgage loans sold with servicing retained is reduced by the amount allocated to the servicing right at the time of sale. Gains and losses on sales of mortgage loans held for sale are included in earnings in mortgage income, net. 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 amount outstanding, net of deferred loan fees and costs, and any direct principal charge-off. 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 4 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 on the acquisition date. 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 4 for additional information and disclosures on loans. Prior to January 1, 2020, the Company initially classified acquired loans as either purchased credit impaired (“PCI”) loans (i.e., loans that reflect credit deterioration since origination and for which it was probable at acquisition that the Company would 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. Allowance for Credit Losses - Loans : The ACL-Loans represents management’s estimate of expected credit losses over the lifetime of the loan based on loans in the Company’s loan portfolio at the balance sheet date. The Company estimates the ACL-Loans based on the amortized cost basis of the underlying loan and has made an accounting policy election to exclude accrued interest from the loan’s amortized cost basis and the related measurement of the ACL-Loans. Estimating the amount of the ACL-Loans is a function of a number of factors, including but not limited to changes in the loan portfolio, net charge-offs, trends in past due and nonaccrual loans, and the level of potential problem loans, all of which may be susceptible to significant change. Actual credit losses, net of recoveries, are deducted from the ACL-Loans. Loans are charged-off when management believes that the collectability of the principal is unlikely. Subsequent recoveries, if any, are credited to the ACL-Loans. A provision for credit losses, which is a charge against income, is recorded to bring the ACL-Loans to a level that, in management’s judgment, is appropriate to absorb expected credit losses in the loan portfolio. Prior to January 1, 2020, the Company used an incurred loss impairment model to estimate the ACL-Loans. 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. Effective January 1, 2020, the Company uses a current expected credit loss model (“CECL”) to estimate the ACL-Loans. This methodology also considers historical loss rates and other qualitative adjustments, as well as a new forward-looking component that considers reasonable and supportable forecasts over the expected life of each loan. To develop the ACL-Loans estimate under the CECL model, the Company segments the loan portfolio into loan pools based on loan type and similar credit risk elements; performs an individual evaluation of PCD and other credit-deteriorated 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. To assess the overall appropriateness of the ACL-Loans, management applies an allocation methodology which focuses on evaluation of qualitative and environmental factors, including but not limited to: (i) evaluation of facts and issues related to specific loans; (ii) management’s ongoing review and grading of the loan portfolio; (iii) consideration of historical loan loss and delinquency experience on each portfolio segment; (iv) trends in past due and nonaccrual 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 PCD and other credit-deteriorated loans, which management defines as nonaccrual credit relationships over $250,000, collateral dependent loans, and other loans with evidence of credit deterioration. The specific reserve in the ACL-Loans for these credit deteriorated loans is equal to the aggregate collateral or discounted cash flow shortfall. Next, 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. Management also allocates the ACL-Loans using the qualitative and environmental factors mentioned above. Consideration is given to those current qualitative or environmental factors that are likely to cause estimated credit losses at 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. See Note 4 for additional information and disclosures on the ACL-Loans. Allocations to the ACL-Loans may be made for specific loans but the entire ACL-Loans is available for any loan that, in management’s judgment, should be charged-off or for which an actual loss is realized. The allowance analysis is reviewed by the Board on a quarterly basis in compliance with internal and regulatory requirements. Credit-Related Financial Instruments : In the ordinary course of business the Company has entered into financial instruments consisting of commitments to extend credit, financial standby letters of credit, and performance standby letters of credit. Financial standby letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and the third party, while performance standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party. Such financial instruments are recorded in the consolidated financial statements when they are funded. See Note 14 for additional information and disclosures on credit-related financial instruments. Allowance for Credit Losses - Unfunded Commitments : In addition to the ACL-Loans, the Company has established an allowance for unfunded commitments, included in accrued interest payable and other liabilities on the consolidated balance sheets, representing expected credit losses over the contractual period for which the Company is exposed to credit risk resulting from a contractual obligation to extend credit. The ACL-Unfunded Commitments is maintained at a level that management believes is sufficient to absorb losses arising from unfunded loan commitments, and is determined quarterly based on methodology similar to the methodology for determining the ACL-Loans. See Note 4 for additional information on the ACL-Unfunded Commitments. Transfers of Financial Assets : Transfers of financial assets, primarily in loan participation activities, are accounted for as sales only when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of the right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return assets. Premises and Equipment : Premises and equipment are stated at cost less accumulated depreciation and amortization. Premises and equipment from acquisitions were recorded at estimated fair value on the respective dates of acquisition. Depreciation is computed on a straight-line basis over the estimated useful lives of the related assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful lives of the improvements or the terms of the related leases. Maintenance and repairs are expensed as incurred. See Note 5 for additional information on premises and equipment. Estimated useful lives of new premises and equipment generally range as follows: Building and improvements 25 – 40 years Leasehold improvements 5 – 15 years Furniture and equipment 3 – 10 years Operating Leases : The Company accounts for its operating leases in accordance with ASC 842, Leases , which requires lessees to record almost all leases on the balance sheet as a right-of-use (“ROU”) asset and lease liability. The operating lease ROU asset represents the right to use an underlying asset during the lease term (included in accrued interest receivable and other assets accrued interest payable and other liabilities Other Real Estate Owned (“OREO”) : OREO acquired through partial or total satisfaction of loans or bank facilities no longer in use are carried at fair value less estimated costs to sell. Any write-down in the carrying value of loans or vacated bank premises at the time of transfer to OREO is charged to the ACL-Loans or to write-down of assets, respectively. OREO properties acquired in conjunction with acquisition transactions were recorded at fair value on the date of acquisition. Any subsequent write-downs to reflect current fair value, as well as gains or losses on disposition and revenues and expenses incurred to hold and maintain such properties, are treated as period costs. See Note 7 for additional information on OREO. Goodwill and Other Intangibles : Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired. Goodwill is not amortized but, instead, is subject to impairment tests on at least an annual basis or more frequently if certain events or circumstances occur. Other intangibles include core deposit intangibles (which represent the value of acquired customer core deposit bases) and customer list intangibles. The core deposit intangibles have an estimated finite life, are amortized on an accelerated basis over a 10-year period, and are subject to periodic impairment evaluation. The customer list intangibles have finite lives, are amortized on a straight-line basis to expense over their initial weighted average life of approximately 12 years as of acquisition, and are subject to periodic impairment evaluation. See Note 6 for additional information on goodwill and other intangibles. 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. The Company’s annual assessments resulted in a $0.8 million impairment charge on goodwill in late 2019 for a change in business strategy, while no other impairment was indicated on the remaining goodwill and other intangibles for 2021 or 2020. Mortgage Servicing Rights (“MSRs”) : The Company sells originated residential mortgages into the secondary market and retains the right to service the loans sold. A mortgage servicing right asset (liability) is capitalized upon sale of such loans with the offsetting effect recorded as a gain (loss) on sale of loan in earnings (included in mortgage income, net), representing the then-current estimated fair value of future net cash flows expected to be realized for performing the servicing activities. MSRs when purchased (including MSRs purchased in acquisitions) are initially recorded at their then-estimated fair value. As the Company has not elected to measure any class of servicing assets under the fair value method, the Company utilizes the amortization method. MSRs are amortized in proportion to and over the period of estimated net servicing income, with the amortization charged to earnings (included in mortgage income, net). MSRs are carried at the lower of initial capitalized amount, net of accumulated amortization, or estimated fair value, and are included in other assets in the consolidated balance sheets. Loan servicing fee income for servicing loans is typically based on a contractual percentage of the outstanding principal and is recorded as income when earned (included in mortgage income, net with less material late fees and ancillary fees related to loan servicing). The Company periodically evaluates its MSRs 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). The value of MSRs is adversely affected when mortgage interest rates decline and mortgage loan prepayments increase. A valuation allowance is established through a charge to earnings (included in mortgage income, net) to the extent the amortized cost of the MSRs exceeds the estimated fair value by stratification. If it is later determined that all or a portion of the temporary impairment no longer exists for a stratification, the valuation is reduced through a recovery to earnings, though not beyond the net amortized cost carried. An other-than-temporary impairment (i.e., recoverability is considered remote when considering interest rates and loan payoff activity) is recognized as a write-down of the MSRs and the related valuation allowance (to the extent a valuation allowance is available) and then against earnings. A direc |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS Completed Acquisitions: County Bancorp, Inc. (“County”): On December 3, 2021, Nicolet completed its merger with County, pursuant to the terms of the Agreement and Plan of Merger dated June 22, 2021 (the “County Merger Agreement”), at which time County merged with and into Nicolet, and Investors Community Bank, the wholly owned bank subsidiary of County, was merged with and into the Bank. Pursuant to the County Merger Agreement, each share of County common stock issued and outstanding immediately prior to the Effective Time was converted into the right to receive, at the election of the shareholder, either cash of $37.18 or 0.48 shares of Nicolet common stock, subject to proration procedures such that 1,237,000 shares of County common stock were exchanged for cash, and the remaining shares were exchanged for Nicolet common stock. As a result, Nicolet issued approximately 2.4 million shares of Nicolet common stock for stock consideration of $176 million and cash consideration of $48 million, or a total purchase price of $224 million. With the County merger, Nicolet became the premier agriculture lender throughout Wisconsin. A summary of the assets acquired and liabilities assumed in the County transaction, as of the acquisition date, including the preliminary purchase price allocation was as follows. (In millions, except share data) Acquired from County Fair Value Adjustments Estimated Fair Value Assets Acquired: Cash and cash equivalents $ 20 $ — $ 20 Investment securities 301 (1) 300 Loans 1,015 (1) 1,014 ACL-Loans (11) 8 (3) Premises and equipment 21 (4) 17 BOLI 33 — 33 Core deposit intangible — 7 7 Loan servicing rights 20 — 20 Other assets 6 (2) 4 Total assets $ 1,405 $ 7 $ 1,412 Liabilities Assumed: Deposits $ 1,027 $ 3 $ 1,030 Borrowings 218 1 219 Other liabilities 8 — 8 Total liabilities $ 1,253 $ 4 $ 1,257 Net assets acquired $ 155 Purchase Price: Nicolet common stock issued (in shares) 2,366,243 Value of Nicolet common stock consideration $ 176 Cash consideration paid 48 Total purchase price $ 224 Write-off prior investment in County (1) Preliminary goodwill $ 70 The Company purchased loans through the acquisition of County for which there was, at the date of acquisition, more than insignificant deterioration of credit quality since origination (purchased credit deteriorated loans or “PCD” loans). The carrying amount of these loans at acquisition was as follows. (In thousands) December 3, 2021 Purchase price of PCD loans at acquisition $ 64,948 Allowance for credit losses on PCD loans at acquisition 3,262 Par value of PCD acquired loans at acquisition $ 68,210 The Company accounted for the County acquisition under the acquisition method of accounting, and thus, the financial position and results of operations of County prior to the consummation date were not included in the accompanying consolidated financial statements. The accounting required assets purchased and liabilities assumed to be recorded at their respective estimated fair values at the date of acquisition. The estimated fair value was determined with the assistance of third party valuations, appraisals, and third party advisors. Due to the timing of the merger, the purchase price allocation and estimated fair value measurements remain preliminary. Goodwill arising as a result of the County acquisition is not deductible for tax purposes. Management will continue to review the estimated fair values and expects to finalize its analysis of the acquired assets and assumed liabilities in the transaction over the next few months, within one year of the merger. Therefore, adjustments to the purchase price allocation and estimated fair value may occur. Mackinac Financial Corporation (“Mackinac”): On September 3, 2021, Nicolet completed its merger with Mackinac, pursuant to the terms of the Agreement and Plan of Merger dated April 12, 2021 (the “Mackinac Merger Agreement”), at which time Mackinac merged with and into Nicolet, and mBank, the wholly owned bank subsidiary of Mackinac, was merged with and into the Bank. Pursuant to the Mackinac Merger Agreement, Mackinac shareholders received fixed consideration of 0.22 shares of Nicolet common stock and $4.64 in cash for each share of Mackinac common stock owned (approximating 20% in cash and 80% in stock), resulting in the issuance of 2.3 million shares of Nicolet common stock for stock consideration of $180 million and cash consideration of $49 million, or a total purchase price of $229 million. The Mackinac merger expands Nicolet prominently into Northern Michigan and the Upper Peninsula of Michigan, and adds to Nicolet’s presence in upper northeastern Wisconsin. A summary of the assets acquired and liabilities assumed in the Mackinac transaction, as of the acquisition date, including the preliminary purchase price allocation was as follows. (In millions, except share data) Acquired from Mackinac Fair Value Adjustments Estimated Fair Value Assets Acquired: Cash and cash equivalents $ 448 $ — $ 448 Investment securities 104 — 104 Loans 930 10 940 ACL-Loans (6) 4 (2) Premises and equipment 24 (3) 21 BOLI 16 — 16 Goodwill 20 (20) — Other intangibles 4 3 7 Other assets 25 (3) 22 Total assets $ 1,565 $ (9) $ 1,556 Liabilities Assumed: Deposits $ 1,365 $ 1 $ 1,366 Borrowings 28 1 29 Other liabilities 13 1 14 Total liabilities $ 1,406 $ 3 $ 1,409 Net assets acquired $ 147 Purchase Price: Nicolet common stock issued (in shares) 2,337,230 Value of Nicolet common stock consideration $ 180 Cash consideration paid 49 Total purchase price $ 229 Write-off prior investment in Mackinac (2) Preliminary goodwill $ 84 The Company purchased loans through the acquisition of Mackinac for which there was, at the date of acquisition, more than insignificant deterioration of credit quality since origination (PCD loans). The carrying amount of these loans at acquisition was as follows. (In thousands) September 3, 2021 Purchase price of PCD loans at acquisition $ 10,605 Allowance for credit losses on PCD loans at acquisition 1,896 Par value of PCD acquired loans at acquisition $ 12,501 The Company accounted for the Mackinac acquisition under the acquisition method of accounting, and thus, the financial position and results of operations of Mackinac prior to the consummation date were not included in the accompanying consolidated financial statements. The accounting required assets purchased and liabilities assumed to be recorded at their respective estimated fair values at the date of acquisition. The estimated fair value was determined with the assistance of third party valuations, appraisals, and third party advisors. Due to the timing of the merger, the purchase price allocation and estimated fair value measurements remain preliminary. Goodwill arising as a result of the Mackinac acquisition is not deductible for tax purposes. Management will continue to review the estimated fair values and expects to finalize its analysis of the acquired assets and assumed liabilities in the transaction over the next few months, within one year of the merger. Therefore, adjustments to the purchase price allocation and estimated fair value may occur. Summary Unaudited Pro Forma Information: The following unaudited pro forma information is presented for illustrative purposes only, and gives effect to the acquisitions of County and Mackinac as if the acquisitions had occurred on January 1, 2019, the beginning of the earliest period presented. The pro forma information should not be relied upon as being indicative of the historical results of operations the companies would have had if the acquisitions had occurred before such periods or the future results of operations that the companies will experience as a result of the mergers. The pro forma information, although helpful in illustrating the financial characteristics of the combined company under one set of assumptions, does not reflect the benefits of expected cost savings, opportunities to earn additional revenue, the impact of restructuring and merger-related expenses, or other factors that may result as a consequence of the mergers and, accordingly, does not attempt to predict or suggest future results. Years Ended (In thousands, except per share data) December 31, 2021 December 31, 2020 December 31, 2019 Total revenue, net of interest expense $ 320,307 $ 308,325 $ 283,930 Net income $ 87,860 $ 77,641 $ 74,087 Diluted earnings per common share $ 5.91 $ 5.21 $ 5.13 Advantage Community Bancshares, Inc. (“Advantage”) : On August 21, 2020, Nicolet completed its merger with Advantage, pursuant to the terms of the definitive merger agreement dated March 2, 2020, whereby Advantage merged with and into Nicolet, and Advantage Community Bank, the wholly owned bank subsidiary of Advantage, was merged with and into the Bank. Advantage’s four branches in Dorchester, Edgar, Mosinee, and Wausau opened as Nicolet National Bank branches on August 24, 2020, expanding our presence in Central Wisconsin and the Wausau area. Due to the small size of the transaction, terms of the all-cash deal were not disclosed. Upon consummation, Advantage added total assets of approximately $172 million (representing 4% of Nicolet’s then pre-merger asset size), loans of $88 million, deposits of $141 million, core deposit intangible of $1 million, and goodwill of $12 million. 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, Choice 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. Terminated Acquisition: Commerce Financial Holdings, Inc. (“Commerce”) : On February 17, 2020, Nicolet entered into a definitive merger agreement (“Merger Agreement”) with Commerce pursuant to which Nicolet would acquire Commerce and its wholly owned bank subsidiary, Commerce State Bank. On May 18, 2020, Nicolet and Commerce announced a mutual agreement to terminate their Merger Agreement. Nicolet paid Commerce $0.5 million and surrendered its $0.1 million of Commerce common stock. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES Investment securities are classified as AFS or HTM on the consolidated balance sheets at the time of purchase. AFS securities include those securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity, and are carried at fair value on the consolidated balance sheets. HTM securities include those securities which the Company has both the positive intent and ability to hold to maturity, and are carried at amortized cost on the consolidated balance sheets. See Note 1 for the Company’s accounting policy on investment securities. During 2021, the Company purchased approximately $500 million of U.S. government agency securities of varying yields and durations, which were classified as HTM, to re-invest a portion of excess cash liquidity. In addition, a portion of the investment securities acquired with County and Mackinac were designated as HTM at acquisition. The amortized cost and fair value of securities available for sale and held to maturity are summarized as follows. December 31, 2021 (in thousands) Amortized Gross Unrealized Gains Gross Unrealized Losses Fair Fair Value as % of Total Securities AFS: U.S. government agency securities $ 192,506 $ 6 $ 1,235 $ 191,277 21 % State, county and municipals 311,717 3,222 2,202 312,737 34 % Mortgage-backed securities 270,017 3,090 1,845 271,262 29 % Corporate debt securities 143,172 3,459 246 146,385 16 % $ 917,412 $ 9,777 $ 5,528 $ 921,661 100 % Securities HTM: U.S. government agency securities $ 508,810 $ — $ 2,740 $ 506,070 78 % State, county and municipals 42,876 10 173 42,713 7 % Mortgage-backed securities 100,117 89 595 99,611 15 % Corporate debt securities — — — — — % $ 651,803 $ 99 $ 3,508 $ 648,394 100 % December 31, 2020 (in thousands) Amortized Gross Unrealized Gains Gross Unrealized Losses Fair Fair Value as % of Total Securities AFS: U.S. government agency securities $ 63,162 $ 289 $ — $ 63,451 12 % State, county and municipals 226,493 5,386 11 231,868 43 % Mortgage-backed securities 156,148 6,425 78 162,495 30 % Corporate debt securities 76,073 5,450 — 81,523 15 % $ 521,876 $ 17,550 $ 89 $ 539,337 100 % Investment securities with a carrying value of $277 million and $146 million as of December 31, 2021 and 2020, respectively, were pledged as collateral on public deposits and for other purposes as required or permitted by law. Accrued interest on investment securities totaled $4.6 million and $2.3 million at December 31, 2021 and 2020, respectively, and is included in accrued interest receivable and other assets on the consolidated balance sheets. Management evaluates securities AFS in unrealized loss positions on a quarterly basis to determine whether the decline in fair value below the amortized cost basis (impairment) is due to credit-related factors or noncredit-related factors. The Company does not consider its securities AFS with unrealized losses to be attributable to credit-related factors, as the unrealized losses in each category have occurred as a result of changes in noncredit-related factors such as changes in interest rates, market spreads and market conditions subsequent to purchase, not credit deterioration. Furthermore, the Company does not have the intent to sell any of these securities AFS and believes that it is more likely than not that we will not have to sell any such securities before a recovery of cost. As of December 31, 2021 and 2020, no allowance for credit losses on securities AFS was recognized. There were no other-than-temporary impairment charges recognized in earnings on securities AFS during 2019. Management evaluates securities HTM on a quarterly basis to determine whether an allowance for credit losses is necessary. In making this determination, management considers the facts and circumstances of the underlying investment securities. The U.S. government agency securities include U.S. Treasury Notes which are guaranteed by the U.S. government. For the state, county and municipal securities, management considers issuer bond ratings, historical loss rates by bond ratings, whether issuers continue to make timely principal and interest payments per the contractual terms of the investment securities, internal forecasts, and whether or not such investment securities provide insurance, other credit enhancement, or are pre-refunded by the issuers. For the mortgage-backed securities, all such securities were issued by U.S. government agencies and corporations, which are currently explicitly or implicitly guaranteed by the U.S. government and have a long history of no credit losses. Therefore, management determined no allowance for credit losses was necessary for the securities HTM. The following tables present gross unrealized losses and the related estimated fair value of investment securities for which an allowance for credit losses has not been recorded, aggregated by investment category and the length of time the individual securities have been in a continuous unrealized loss position. December 31, 2021 Less than 12 months 12 months or more Total ($ in thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Number of Securities Securities AFS: U.S. government agency securities $ 190,432 $ 1,235 $ — $ — $ 190,432 $ 1,235 11 State, county and municipals 103,950 2,119 1,777 83 105,727 2,202 132 Mortgage-backed securities 137,561 1,616 6,068 229 143,629 1,845 159 Corporate debt securities 23,267 246 — — 23,267 246 13 $ 455,210 $ 5,216 $ 7,845 $ 312 $ 463,055 $ 5,528 315 Securities HTM: U.S. government agency securities $ 505,938 $ 2,740 $ — $ — $ 505,938 $ 2,740 9 State, county and municipals 30,898 173 — — 30,898 173 46 Mortgage-backed securities 69,333 595 — — 69,333 595 72 $ 606,169 $ 3,508 $ — $ — $ 606,169 $ 3,508 127 December 31, 2020 Less than 12 months 12 months or more Total ($ in thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Number of Securities Securities AFS: State, county and municipals $ 5,181 $ 11 $ — $ — $ 5,181 $ 11 9 Mortgage-backed securities 10,612 71 492 7 11,104 78 22 $ 15,793 $ 82 $ 492 $ 7 $ 16,285 $ 89 31 The amortized cost and fair value of investment securities by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties; as this is particularly inherent in mortgage-backed securities, these securities are not included in the maturity categories below. See Note 18 for additional information on the Company’s fair value measurements. As of December 31, 2021 Securities AFS Securities HTM (in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in less than one year $ 30,676 $ 30,916 $ 7,396 $ 7,394 Due in one year through five years 333,207 335,452 501,002 498,252 Due after five years through ten years 200,780 200,089 34,128 33,993 Due after ten years 82,732 83,942 9,160 9,144 647,395 650,399 551,686 548,783 Mortgage-backed securities 270,017 271,262 100,117 99,611 Total $ 917,412 $ 921,661 $ 651,803 $ 648,394 Proceeds and realized gains / losses from the sale of securities AFS were as follows. Years Ended December 31, (in thousands) 2021 2020 2019 Gross gains $ 5 $ 395 $ 152 Gross losses (288) — (174) Gains (losses) on sales of securities AFS, net $ (283) $ 395 $ (22) Proceeds from sales of securities AFS $ 42,973 $ 19,045 $ 23,405 |
LOANS, ALLOWANCE FOR LOAN LOSSE
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
LOANS, ALLOWANCE FOR CREDIT LOSSES - LOANS, AND CREDIT QUALITY | LOANS, ALLOWANCE FOR CREDIT LOSSES - LOANS, AND CREDIT QUALITY Loans : The loan composition was as follows. December 31, 2021 December 31, 2020 (in thousands) Amount % of Total Amount % of Total Commercial & industrial $ 1,017,725 22 % $ 750,718 27 % Paycheck Protection Program (“PPP”) loans 24,531 1 186,016 7 Owner-occupied commercial real estate (“CRE”) 787,189 17 521,300 19 Agricultural 794,728 17 109,629 4 CRE investment 818,061 18 460,721 16 Construction & land development 213,035 5 131,283 5 Residential construction 70,353 1 41,707 1 Residential first mortgage 713,983 15 444,155 16 Residential junior mortgage 131,424 3 111,877 4 Retail & other 50,807 1 31,695 1 Loans 4,621,836 100 % 2,789,101 100 % Less ACL-Loans 49,672 32,173 Loans, net $ 4,572,164 $ 2,756,928 ACL-Loans to loans 1.07 % 1.15 % Accrued interest on loans totaled $11 million and $7 million at December 31, 2021 and December 31, 2020, respectively, and is included in accrued interest receivable and other assets on the consolidated balance sheets. See Note 1 for the Company’s accounting policy on 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 - loans was as follows. Years Ended December 31, (in thousands) 2021 2020 2019 Beginning balance $ 32,173 $ 13,972 $ 13,153 Adoption of CECL — 8,488 — Initial PCD ACL — 797 — Total impact for adoption of CECL — 9,285 — ACL on PCD loans acquired 5,159 — — Provision for credit losses 12,500 10,300 1,200 Charge-offs (513) (1,689) (927) Recoveries 353 305 546 Net (charge-offs) recoveries (160) (1,384) (381) Ending balance $ 49,672 $ 32,173 $ 13,972 The following table presents the balance and activity in the ACL-Loans by portfolio segment. Year Ended December 31, 2021 (in thousands) Commercial Owner- Agricultural CRE Construction & land Residential Residential Residential Retail Total ACL-Loans * Beginning balance $ 11,644 $ 5,872 $ 1,395 $ 5,441 $ 984 $ 421 $ 4,773 $ 1,086 $ 557 $ 32,173 ACL on PCD loans 723 1,045 2,585 415 103 — 272 13 3 5,159 Provision 196 305 5,615 2,608 725 479 1,892 237 443 12,500 Charge-offs (242) — (48) (4) — — (113) — (106) (513) Recoveries 292 — — 2 — — 20 4 35 353 Net (charge-offs) recoveries 50 — (48) (2) — — (93) 4 (71) (160) Ending balance $ 12,613 $ 7,222 $ 9,547 $ 8,462 $ 1,812 $ 900 $ 6,844 $ 1,340 $ 932 $ 49,672 As % of ACL-Loans 25 % 14 % 19 % 17 % 4 % 2 % 14 % 3 % 2 % 100 % * The PPP loans are fully guaranteed by the SBA; thus, no ACL-Loans has been allocated to these loans. For comparison purposes, the following table presents the balance and activity in the ACL-Loans by portfolio segment for the prior year-end period. Year Ended December 31, 2020 (in thousands) Commercial Owner- Agricultural CRE Construction & land Residential Residential Residential Retail Total ACL-Loans * Beginning balance $ 5,471 $ 3,010 $ 579 $ 1,600 $ 414 $ 368 $ 1,669 $ 517 $ 344 $ 13,972 Adoption of CECL 2,962 1,249 361 1,970 51 124 1,286 351 134 8,488 Initial PCD ACL 797 — — — — — — — — 797 Provision 3,106 2,062 455 2,061 519 (71) 1,809 151 208 10,300 Charge-offs (812) (530) — (190) — — (2) — (155) (1,689) Recoveries 120 81 — — — — 11 67 26 305 Net (charge-offs) recoveries (692) (449) — (190) — — 9 67 (129) (1,384) Ending balance $ 11,644 $ 5,872 $ 1,395 $ 5,441 $ 984 $ 421 $ 4,773 $ 1,086 $ 557 $ 32,173 As % of ACL-Loans 36 % 18 % 4 % 17 % 3 % 1 % 15 % 4 % 2 % 100 % The ACL-Loans 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. Allowance for Credit Losses-Unfunded Commitments : In addition to the ACL-Loans, the Company has established an ACL-Unfunded Commitments of $2.4 million at December 31, 2021, classified in accrued interest payable and other liabilities on the consolidated balance sheets. See Note 1 for the Company’s accounting policy on the allowance for credit losses-unfunded commitments. Provision for Credit Losses : The provision for credit losses is determined by the Company as the amount to be added to the ACL loss accounts for various types of financial instruments (including, loans, investment securities, and off-balance sheet credit exposures) after net charge-offs have been deducted to bring the ACL to a level that, in management’s judgment, is necessary to absorb expected credit losses over the lives of the respective financial instruments. See Note 3 for additional information regarding the ACL related to investment securities. The following table presents the components of the provision for credit losses. Years Ended December 31, (in thousands) 2021 2020 2019 Provision for credit losses on: Loans $ 12,500 $ 10,300 $ 1,200 Unfunded commitments 2,400 — — Investment securities — — — Total provision for credit losses $ 14,900 $ 10,300 $ 1,200 Collateral Dependent Loans : A loan is considered to be collateral dependent when, based upon management’s assessment, the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. For collateral dependent loans, expected credit losses are based on the fair value of the collateral at the balance sheet date, with consideration for estimated selling costs if satisfaction of the loan depends on the sale of the collateral. The following table presents collateral dependent loans by portfolio segment and collateral type, including those loans with and without a related allowance allocation. December 31, 2021 Collateral Type (in thousands) Real Estate Other Business Assets Total Without an Allowance With an Allowance Allowance Allocation Commercial & industrial $ — $ 2,296 $ 2,296 $ 1,842 $ 454 $ 258 PPP loans — — — — — — Owner-occupied CRE 3,537 — 3,537 1,315 2,222 552 Agricultural 19,637 8,518 28,155 25,310 2,845 841 CRE investment 3,000 — 3,000 1,684 1,316 407 Construction & land development 1,038 — 1,038 655 383 211 Residential construction — — — — — — Residential first mortgage 473 — 473 473 — — Residential junior mortgage — — — — — — Retail & other — — — — — — Total loans $ 27,685 $ 10,814 $ 38,499 $ 31,279 $ 7,220 $ 2,269 December 31, 2020 Collateral Type (in thousands) Real Estate Other Business Assets Total Without an Allowance With an Allowance Allowance Allocation Commercial & industrial $ — $ 2,195 $ 2,195 $ 501 $ 1,694 $ 1,241 PPP loans — — — — — — Owner-occupied CRE 3,519 — 3,519 3,519 — — Agricultural 584 797 1,381 1,378 3 3 CRE investment 1,474 — 1,474 1,474 — — Construction & land development 308 — 308 308 — — Residential construction — — — — — — Residential first mortgage — — — — — — Residential junior mortgage — — — — — — Retail & other — — — — — — Total loans $ 5,885 $ 2,992 $ 8,877 $ 7,180 $ 1,697 $ 1,244 Past Due and Nonaccrual Loans : The following tables present past due loans by portfolio segment. December 31, 2021 (in thousands) 30-89 Days Past 90 Days & Over Current Total Commercial & industrial $ 94 $ 1,908 $ 1,015,723 $ 1,017,725 PPP loans — — 24,531 24,531 Owner-occupied CRE — 4,220 782,969 787,189 Agricultural 108 28,367 766,253 794,728 CRE investment 114 4,119 813,828 818,061 Construction & land development — 1,071 211,964 213,035 Residential construction 246 — 70,107 70,353 Residential first mortgage 2,592 4,132 707,259 713,983 Residential junior mortgage 23 243 131,158 131,424 Retail & other 115 94 50,598 50,807 Total loans $ 3,292 $ 44,154 $ 4,574,390 $ 4,621,836 Percent of total loans 0.1 % 0.9 % 99.0 % 100.0 % December 31, 2020 (in thousands) 30-89 Days Past 90 Days & Over Current Total Commercial & industrial $ — $ 2,646 $ 748,072 $ 750,718 PPP loans — — 186,016 186,016 Owner-occupied CRE — 1,869 519,431 521,300 Agricultural 7 1,830 107,792 109,629 CRE investment — 1,488 459,233 460,721 Construction & land development — 327 130,956 131,283 Residential construction — — 41,707 41,707 Residential first mortgage 613 823 442,719 444,155 Residential junior mortgage 43 384 111,450 111,877 Retail & other 102 88 31,505 31,695 Total loans $ 765 $ 9,455 $ 2,778,881 $ 2,789,101 Percent of total loans — % 0.4 % 99.6 % 100.0 % The following table presents nonaccrual loans by portfolio segment. The nonaccrual loans without a related allowance for credit losses have been reflected in the collateral dependent loans table above. Total Nonaccrual Loans (in thousands) December 31, 2021 % to Total December 31, 2020 % to Total Commercial & industrial $ 1,908 4 % $ 2,646 28 % PPP loans — — — — Owner-occupied CRE 4,220 10 1,869 20 Agricultural 28,367 64 1,830 19 CRE investment 4,119 9 1,488 16 Construction & land development 1,071 3 327 3 Residential construction — — — — Residential first mortgage 4,132 9 823 9 Residential junior mortgage 243 1 384 4 Retail & other 94 — 88 1 Nonaccrual loans $ 44,154 100 % $ 9,455 100 % Percent of total loans 0.9 % 0.4 % Credit Quality Information : The following tables present total loans by risk categories and year of origination. Loans acquired from Mackinac and County have been included in the December 31, 2021 table based upon the actual origination date. December 31, 2021 Amortized Cost Basis by Origination Year (in thousands) 2021 2020 2019 2018 2017 Prior Revolving Revolving to Term TOTAL Commercial & industrial (a) Grades 1-4 $ 282,369 $ 146,131 $ 99,702 $ 69,478 $ 50,557 $ 71,247 $ 288,115 $ — $ 1,007,599 Grade 5 1,685 1,905 4,369 5,809 4,860 2,097 8,408 — 29,133 Grade 6 598 54 16 687 67 91 391 — 1,904 Grade 7 — 440 692 337 976 743 432 — 3,620 Total $ 284,652 $ 148,530 $ 104,779 $ 76,311 $ 56,460 $ 74,178 $ 297,346 $ — $ 1,042,256 Owner-occupied CRE Grades 1-4 $ 154,578 $ 94,300 $ 105,226 $ 92,128 $ 75,583 $ 202,816 $ 6,945 $ — $ 731,576 Grade 5 7,753 3,019 6,529 2,543 2,515 13,905 656 — 36,920 Grade 6 — — 1,642 — 20 805 — — 2,467 Grade 7 — 3,124 1,914 — 3,526 6,672 990 — 16,226 Total $ 162,331 $ 100,443 $ 115,311 $ 94,671 $ 81,644 $ 224,198 $ 8,591 $ — $ 787,189 Agricultural Grades 1-4 $ 128,404 $ 87,844 $ 28,416 $ 22,887 $ 36,298 $ 86,104 $ 235,743 $ — $ 625,696 Grade 5 14,796 4,183 2,391 915 3,912 48,373 26,778 — 101,348 Grade 6 38 38 36 — 86 1,049 85 — 1,332 Grade 7 3,284 3,971 3,490 4,201 7,215 31,672 12,519 — 66,352 Total $ 146,522 $ 96,036 $ 34,333 $ 28,003 $ 47,511 $ 167,198 $ 275,125 $ — $ 794,728 CRE investment Grades 1-4 $ 192,274 $ 139,127 $ 136,306 $ 56,148 $ 65,026 $ 162,991 $ 11,289 $ — $ 763,161 Grade 5 11,081 3,001 6,497 3,945 6,726 17,527 — — 48,777 Grade 6 — — — — — — — — — Grade 7 — — 456 141 1,352 3,943 231 — 6,123 Total $ 203,355 $ 142,128 $ 143,259 $ 60,234 $ 73,104 $ 184,461 $ 11,520 $ — $ 818,061 Construction & land development Grades 1-4 $ 81,891 $ 72,415 $ 12,547 $ 19,511 $ 1,184 $ 11,274 $ 10,943 $ — $ 209,765 Grade 5 640 — 521 919 — 119 — — 2,199 Grade 6 — — — — — — — — — Grade 7 — — — — 17 1,054 — — 1,071 Total $ 82,531 $ 72,415 $ 13,068 $ 20,430 $ 1,201 $ 12,447 $ 10,943 $ — $ 213,035 Residential construction Grades 1-4 $ 58,352 $ 9,998 $ 155 $ 344 $ 1,072 $ 380 $ — $ — $ 70,301 Grade 5 — — 52 — — — — — 52 Grade 6 — — — — — — — — — Grade 7 — — — — — — — — — Total $ 58,352 $ 9,998 $ 207 $ 344 $ 1,072 $ 380 $ — $ — $ 70,353 Residential first mortgage Grades 1-4 $ 256,082 $ 152,932 $ 168,705 $ 22,568 $ 20,147 $ 82,479 $ 1,840 $ 4 $ 704,757 Grade 5 713 529 3,094 — — 1,508 — — 5,844 Grade 6 — — — — — — — — — Grade 7 — — 560 225 73 2,524 — — 3,382 Total $ 256,795 $ 153,461 $ 172,359 $ 22,793 $ 20,220 $ 86,511 $ 1,840 $ 4 $ 713,983 Residential junior mortgage Grades 1-4 $ 3,194 $ 3,139 $ 3,021 $ 1,501 $ 512 $ 1,969 $ 115,817 $ 1,426 $ 130,579 Grade 5 — — 29 — — — 439 — 468 Grade 6 — — — — — — — — — Grade 7 — — 172 — 23 44 138 — 377 Total $ 3,194 $ 3,139 $ 3,222 $ 1,501 $ 535 $ 2,013 $ 116,394 $ 1,426 $ 131,424 Retail & other Grades 1-4 $ 13,676 $ 6,886 $ 5,826 $ 2,053 $ 1,882 $ 20,102 $ 275 $ — $ 50,700 Grade 5 — — — — — — — — — Grade 6 — — — — — — — — — Grade 7 — 24 2 19 — 62 — — 107 Total $ 13,676 $ 6,910 $ 5,828 $ 2,072 $ 1,882 $ 20,164 $ 275 $ — $ 50,807 Total loans $ 1,211,408 $ 733,060 $ 592,366 $ 306,359 $ 283,629 $ 771,550 $ 722,034 $ 1,430 $ 4,621,836 (a) For purposes of this table at December 31, 2021, the $25 million net carrying value of PPP loans include $24 million originated in 2021 and the remainder originated in 2020, have a Pass risk grade (Grades 1-4) and have been included with the Commercial & industrial loan category. December 31, 2020 Amortized Cost Basis by Origination Year (in thousands) 2020 2019 2018 2017 2016 Prior Revolving Revolving to Term TOTAL Commercial & industrial (a) Grades 1-4 $ 348,274 $ 121,989 $ 98,920 $ 72,027 $ 21,613 $ 39,454 $ 183,858 $ — $ 886,135 Grade 5 1,416 2,239 4,486 527 1,638 4,151 18,994 — 33,451 Grade 6 69 19 735 5,315 29 32 1,923 — 8,122 Grade 7 334 1,126 1,389 663 122 3,103 2,289 — 9,026 Total $ 350,093 $ 125,373 $ 105,530 $ 78,532 $ 23,402 $ 46,740 $ 207,064 $ — $ 936,734 Owner-occupied CRE Grades 1-4 $ 90,702 $ 74,029 $ 78,013 $ 52,911 $ 45,042 $ 150,624 $ 870 $ — $ 492,191 Grade 5 42 623 1,349 7,541 1,102 5,842 — — 16,499 Grade 6 — — — 1,710 — 706 — — 2,416 Grade 7 2,987 675 176 835 — 5,521 — — 10,194 Total $ 93,731 $ 75,327 $ 79,538 $ 62,997 $ 46,144 $ 162,693 $ 870 $ — $ 521,300 Agricultural Grades 1-4 $ 13,719 $ 5,652 $ 7,580 $ 9,745 $ 2,613 $ 32,702 $ 21,513 $ — $ 93,524 Grade 5 1,034 — 701 169 644 6,131 356 — 9,035 Grade 6 — — — 329 390 — — — 719 Grade 7 — — 26 110 1,111 5,042 62 — 6,351 Total $ 14,753 $ 5,652 $ 8,307 $ 10,353 $ 4,758 $ 43,875 $ 21,931 $ — $ 109,629 CRE investment Grades 1-4 $ 82,518 $ 78,841 $ 40,881 $ 69,643 $ 31,541 $ 137,048 $ 5,255 $ — $ 445,727 Grade 5 — — 47 1,284 1,828 9,073 — — 12,232 Grade 6 — — — 796 — — — — 796 Grade 7 — — — — — 1,966 — — 1,966 Total $ 82,518 $ 78,841 $ 40,928 $ 71,723 $ 33,369 $ 148,087 $ 5,255 $ — $ 460,721 Construction & land development Grades 1-4 $ 67,578 $ 30,733 $ 15,209 $ 2,204 $ 2,083 $ 7,266 $ 3,675 $ — $ 128,748 Grade 5 — 373 660 545 — 23 455 — 2,056 Grade 6 — — — — — — — — — Grade 7 — — — — — 479 — — 479 Total $ 67,578 $ 31,106 $ 15,869 $ 2,749 $ 2,083 $ 7,768 $ 4,130 $ — $ 131,283 Residential construction Grades 1-4 $ 31,687 $ 9,185 $ 395 $ 121 $ — $ 264 $ — $ — $ 41,652 Grade 5 — — — 55 — — — — 55 Grade 6 — — — — — — — — — Grade 7 — — — — — — — — — Total $ 31,687 $ 9,185 $ 395 $ 176 $ — $ 264 $ — $ — $ 41,707 Residential first mortgage Grades 1-4 $ 146,744 $ 64,013 $ 40,388 $ 41,245 $ 41,274 $ 103,094 $ 287 $ 5 $ 437,050 Grade 5 — 925 2,245 256 364 1,714 — — 5,504 Grade 6 — — — — — — — — — Grade 7 — 437 197 16 9 942 — — 1,601 Total $ 146,744 $ 65,375 $ 42,830 $ 41,517 $ 41,647 $ 105,750 $ 287 $ 5 $ 444,155 Residential junior mortgage Grades 1-4 $ 4,936 $ 4,338 $ 3,663 $ 1,060 $ 869 $ 3,131 $ 91,816 $ 1,648 $ 111,461 Grade 5 — — — — — 32 — — 32 Grade 6 — — — — — — — — — Grade 7 — — — 27 — 232 125 — 384 Total $ 4,936 $ 4,338 $ 3,663 $ 1,087 $ 869 $ 3,395 $ 91,941 $ 1,648 $ 111,877 Retail & other Grades 1-4 $ 8,083 $ 5,213 $ 1,942 $ 1,676 $ 752 $ 1,339 $ 12,602 $ — $ 31,607 Grade 5 — — — — — — — — — Grade 6 — — — — — — — — — Grade 7 16 — 22 — — 50 — — 88 Total $ 8,099 $ 5,213 $ 1,964 $ 1,676 $ 752 $ 1,389 $ 12,602 $ — $ 31,695 Total loans $ 800,139 $ 400,410 $ 299,024 $ 270,810 $ 153,024 $ 519,961 $ 344,080 $ 1,653 $ 2,789,101 (a) For purposes of this table, the $186 million net carrying value of PPP loans were originated in 2020, have a Pass risk grade (Grades 1-4) and have been included with the Commercial & industrial loan category. The following tables present total loans by risk categories. December 31, 2021 (in thousands) Grades 1-4 Grade 5 Grade 6 Grade 7 Total Commercial & industrial $ 983,068 $ 29,133 $ 1,904 $ 3,620 $ 1,017,725 PPP loans 24,531 — — — 24,531 Owner-occupied CRE 731,576 36,920 2,467 16,226 787,189 Agricultural 625,696 101,348 1,332 66,352 794,728 CRE investment 763,161 48,777 — 6,123 818,061 Construction & land development 209,765 2,199 — 1,071 213,035 Residential construction 70,301 52 — — 70,353 Residential first mortgage 704,757 5,844 — 3,382 713,983 Residential junior mortgage 130,579 468 — 377 131,424 Retail & other 50,700 — — 107 50,807 Total loans $ 4,294,134 $ 224,741 $ 5,703 $ 97,258 $ 4,621,836 Percent of total loans 92.9 % 4.9 % 0.1 % 2.1 % 100.0 % December 31, 2020 (in thousands) Grades 1-4 Grade 5 Grade 6 Grade 7 Total Commercial & industrial $ 700,119 $ 33,451 $ 8,122 $ 9,026 $ 750,718 PPP loans 186,016 — — — 186,016 Owner-occupied CRE 492,191 16,499 2,416 10,194 521,300 Agricultural 93,524 9,035 719 6,351 109,629 CRE investment 445,727 12,232 796 1,966 460,721 Construction & land development 128,748 2,056 — 479 131,283 Residential construction 41,652 55 — — 41,707 Residential first mortgage 437,050 5,504 — 1,601 444,155 Residential junior mortgage 111,461 32 — 384 111,877 Retail & other 31,607 — — 88 31,695 Total loans $ 2,668,095 $ 78,864 $ 12,053 $ 30,089 $ 2,789,101 Percent of total loans 95.7 % 2.8 % 0.4 % 1.1 % 100.0 % An internal loan review function rates loans using a grading system based on different risk categories. Loans with a Substandard grade are considered to have a greater risk of loss and may be assigned allocations for loss based on specific review of the weaknesses observed in the individual credits. Such loans are monitored by the loan review function to help ensure early identification of any deterioration. A description of the loan risk categories used by the Company follows. Grades 1-4, Pass: Credits exhibit adequate cash flows, appropriate management and financial ratios within industry norms and/or are supported by sufficient collateral. Some credits in these rating categories may require a need for monitoring but elements of concern are not severe enough to warrant an elevated rating. Grade 5, Watch: Credits with this rating are adequately secured and performing but are being monitored due to the presence of various short-term weaknesses which may include unexpected, short-term adverse financial performance, managerial problems, potential impact of a decline in the entire industry or local economy and delinquency issues. Loans to individuals or loans supported by guarantors with marginal net worth or collateral may be included in this rating category. Grade 6, Special Mention: Credits with this rating have potential weaknesses that, without the Company’s attention and correction may result in deterioration of repayment prospects. These assets are considered Criticized Assets. Potential weaknesses may include adverse financial trends for the borrower or industry, repeated lack of compliance with Company requests, increasing debt to net worth, serious management conditions and decreasing cash flow. Grade 7, Substandard: Assets with this rating are characterized by the distinct possibility the Company will sustain some loss if deficiencies are not corrected. All foreclosures, liquidations, and nonaccrual loans are considered to be categorized in this rating, regardless of collateral sufficiency. Troubled Debt Restructurings: Loans are considered troubled debt restructurings if concessions have been granted to borrowers who are experiencing financial difficulties. The following table presents the loan composition of nonaccrual and performing TDRs. December 31, 2021 December 31, 2020 (in thousands) Performing Nonaccrual Total Performing Nonaccrual Total Commercial & industrial $ — $ 197 $ 197 $ — $ — $ — Owner-occupied CRE 3,466 2,888 6,354 2,120 1,515 3,635 Agricultural — 16,835 16,835 — 1,283 1,283 CRE investment 918 — 918 — 14 14 Construction & land development — 308 308 — 308 308 Residential first mortgage 913 15 928 — 233 233 Residential junior mortgage 146 — 146 — — — Total $ 5,443 $ 20,243 $ 25,686 $ 2,120 $ 3,353 $ 5,473 The following table presents the number of loans modified in a TDR, pre-modification loan balance, and post-modification loan balance by loan composition. December 31, 2021 December 31, 2020 ($ in thousands) Number of Loans Pre-Modification Balance Current Balance Number of Loans Pre-Modification Balance Current Balance Commercial & industrial 2 $ 200 $ 197 — $ — $ — Owner-occupied CRE 6 6,913 6,354 4 4,075 3,635 Agricultural 31 17,228 16,835 4 1,461 1,283 CRE investment 1 919 918 1 180 14 Construction & land development 1 533 308 1 533 308 Residential first mortgage 2 931 928 1 233 233 Residential junior mortgage 1 166 146 — — — Total 44 $ 26,890 $ 25,686 11 $ 6,482 $ 5,473 TDR concessions may include payment schedule modifications, interest rate concessions, maturity date extensions, bankruptcies, or some combination of these concessions. There were no loans which were classified as troubled debt restructurings during the previous twelve months that subsequently defaulted during 2021. As of December 31, 2021, there were no commitments to lend additional funds to debtors whose terms have been modified in troubled debt restructurings. |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT Premises and equipment, less accumulated depreciation and amortization, is summarized as follows. (in thousands) December 31, 2021 December 31, 2020 Land $ 10,806 $ 6,344 Land improvements 3,896 3,950 Building and improvements 79,754 54,989 Leasehold improvements 6,514 4,381 Furniture and equipment 30,741 22,701 131,711 92,365 Less accumulated depreciation and amortization 37,145 32,421 Premises and equipment, net $ 94,566 $ 59,944 Depreciation and amortization expense was $5.0 million in 2021, $4.4 million in 2020, and $3.8 million in 2019. The Company and certain of its subsidiaries are obligated under non-cancelable operating leases for facilities, certain of which provide for rental adjustments based upon increases in cost of living adjustments and other indices. Rent expense under leases totaled $1.3 million in 2021, $1.0 million in 2020, and $1.2 million in 2019. See Note 1 for the Company’s accounting policy on premises and equipment. Nicolet leases space under non-cancelable operating lease agreements for certain bank branch facilities with remaining lease terms of 1 to 10 years. Certain lease arrangements contain extension options which typically range from 5 to 10 years at the then fair market rental rates. The lease asset and liability considers renewal options when they are reasonably certain of being exercised. See Note 1 for the Company’s accounting policy on operating leases. A summary of net lease cost and selected other information related to operating leases was as follows. Years Ended ($ in thousands) December 31, 2021 December 31, 2020 December 31, 2019 Net lease cost: Operating lease cost $ 1,018 $ 834 $ 970 Variable lease cost 234 169 233 Net lease cost $ 1,252 $ 1,003 $ 1,203 Selected other operating lease information: Weighted average remaining lease term (years) 6.3 5.1 4.3 Weighted average discount rate 1.5 % 2.0 % 2.5 % The following table summarizes the maturity of remaining lease liabilities. Years Ending December 31, (in thousands) 2022 $ 2,033 2023 1,595 2024 1,350 2025 1,012 2026 1,024 Thereafter 2,442 Total future minimum lease payments 9,456 Less: amount representing interest (143) Present value of net future minimum lease payments $ 9,313 During 2021, the Company closed fifteen branch locations (ten acquired with Mackinac and the remainder legacy Nicolet branches) as part of its branch optimization strategy to better align with customer actions. The 2021 closures resulted in accelerated depreciation of $0.9 million (recorded to occupancy, equipment and office expense). During 2020, the Company permanently closed |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES AND SERVICING RIGHTS | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES AND SERVICING RIGHTS | GOODWILL AND OTHER INTANGIBLES AND SERVICING RIGHTS Management periodically reviews the carrying value of its intangible assets to determine if any impairment has occurred, in which case an impairment charge would be recorded as an expense in the period of impairment. Management continues to consider the ongoing impacts of the COVID-19 pandemic and related economic uncertainty on the valuation of our franchise value, stability of deposits, and of the wealth client base, underlying our goodwill, core deposit intangibles, and customer list intangibles, and determined no impairments were indicated. A summary of goodwill and other intangibles was as follows. (in thousands) December 31, 2021 December 31, 2020 Goodwill $ 317,189 $ 163,151 Core deposit intangibles 19,445 8,837 Customer list intangibles 2,858 3,365 Other intangibles 22,303 12,202 Goodwill and other intangibles, net $ 339,492 $ 175,353 Goodwill : Goodwill is not amortized but, instead, is subject to impairment tests on at least an annual basis or more frequently if certain events or circumstances occur. During 2021, goodwill increased due to the acquisitions of Mackinac and County, while during 2020 goodwill increased due to the Advantage acquisition. See Note 1 for the Company’s accounting policy for goodwill and see Note 2 for additional information on the Company’s acquisitions. (in thousands) December 31, 2021 December 31, 2020 Goodwill: Goodwill at beginning of year $ 163,151 $ 151,198 Acquisitions 154,038 11,953 Impairment — — Goodwill at end of year $ 317,189 $ 163,151 Other intangibles : Other intangible assets, consisting of core deposit intangibles and customer list intangibles, are amortized over their estimated finite lives. During 2021, core deposit intangibles increased due to the acquisitions of Mackinac and County, while during 2020, core deposit intangibles increased due to the Advantage acquisition. See Note 1 for the Company’s accounting policy for other intangibles and see Note 2 for additional information on the Company’s acquisitions. (in thousands) December 31, 2021 December 31, 2020 Core deposit intangibles: Gross carrying amount * $ 41,360 $ 31,715 Accumulated amortization * (21,915) (22,878) Net book value $ 19,445 $ 8,837 Additions during the period $ 13,595 $ 1,000 Amortization during the period $ 2,987 $ 3,060 Customer list intangibles: Gross carrying amount $ 5,523 $ 5,523 Accumulated amortization (2,665) (2,158) Net book value $ 2,858 $ 3,365 Amortization during the period $ 507 $ 507 * Core deposit intangibles of $4 million was fully amortized during 2020 and has been removed from both the gross carrying amount and accumulated amortization in 2021. Mortgage servicing rights : A summary of the changes in the MSR asset was as follows. (in thousands) December 31, 2021 December 31, 2020 MSR asset: MSR asset at beginning of year $ 10,230 $ 5,919 Capitalized MSR 4,329 5,256 MSR asset acquired 1,322 529 Amortization during the period (2,245) (1,474) MSR asset at end of year $ 13,636 $ 10,230 Valuation allowance at beginning of year $ (1,000) $ — Additions (500) (1,000) Reversals 300 — Valuation allowance at end of year $ (1,200) $ (1,000) MSR asset, net $ 12,436 $ 9,230 Fair value of MSR asset at end of period $ 15,599 $ 9,276 Residential mortgage loans serviced for others $ 1,583,577 $ 1,250,206 Net book value of MSR asset to loans serviced for others 0.79 % 0.74 % The Company periodically evaluates its mortgage servicing rights asset for impairment. At each reporting date, impairment is assessed based on estimated fair value using estimated prepayment speeds of the underlying mortgage loans serviced and stratification based on the risk characteristics of the underlying loans (predominantly loan type and note interest rate). See Note 1 for the Company’s accounting policy for MSRs, see Note 2 for additional information on the Company’s acquisitions, and see Note 18 for additional information on the fair value of the MSR asset. Loan servicing rights : The Company acquired an LSR asset in connection with its acquisition of County on December 3, 2021 (see Note 2 for additional information on the County acquisition). The LSR asset was $20 million at December 31, 2021, and related to $794 million of unpaid principal balances of loans serviced for others. The LSR asset will be amortized over the estimated remaining loan service period as the Company does not expect to add new loans to this servicing portfolio. See Note 1 for the Company’s accounting policy for LSRs and see Note 18 for additional information on the fair value of the LSR asset. The following table shows the estimated future amortization expense for amortizing intangible assets and the servicing assets. The projections are based on existing asset balances, the current interest rate environment and prepayment speeds as of December 31, 2021. The actual amortization expense the Company recognizes in any given period may be significantly different depending upon acquisition or sale activities, changes in interest rates, prepayment speeds, market conditions, regulatory requirements and events or circumstances that indicate the carrying amount of an asset may not be recoverable. (in thousands) Core deposit Customer list MSR asset LSR asset Years Ending December 31, 2022 $ 4,817 $ 507 $ 2,388 $ 9,017 2023 3,910 483 2,502 6,345 2024 3,135 449 2,395 3,673 2025 2,385 449 1,568 1,020 2026 1,659 249 1,204 — Thereafter 3,539 721 3,579 — Total $ 19,445 $ 2,858 $ 13,636 $ 20,055 |
OTHER REAL ESTATE OWNED
OTHER REAL ESTATE OWNED | 12 Months Ended |
Dec. 31, 2021 | |
Real Estate [Abstract] | |
OTHER REAL ESTATE OWNED | OTHER REAL ESTATE OWNED A summary of OREO, which is included in other assets in the consolidated balance sheets, for the periods indicated was as follows. Years Ended December 31, (in thousands) 2021 2020 Balance at beginning of period $ 3,608 $ 1,000 Transfer in loans at net realizable value 334 — Transfer in former bank branch properties at net realizable value 7,843 3,648 Sales proceeds (2,743) (157) Net gain from sales 597 157 Write-downs (28) (1,040) Acquired balance, net 2,344 — Balance at end of period $ 11,955 $ 3,608 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2021 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS At December 31, 2021, the scheduled maturities of time deposits were as follows. Years Ending December 31, (in thousands) 2022 $ 534,767 2023 202,608 2024 71,347 2025 31,784 2026 10,492 Thereafter 1,192 Total time deposits $ 852,190 |
SHORT AND LONG-TERM BORROWINGS
SHORT AND LONG-TERM BORROWINGS | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
SHORT AND LONG-TERM BORROWINGS | SHORT AND LONG-TERM BORROWINGS Short-Term Borrowings: The Company did not have any short-term borrowings (borrowing with an original contractual maturity of one year or less) outstanding at December 31, 2021 or 2020. Long-Term Borrowings: The components of long-term borrowings (borrowing with an original contractual maturity greater than one year) were as follows. (in thousands) December 31, 2021 December 31, 2020 FHLB advances $ 25,000 $ 29,000 Junior subordinated debentures 38,885 24,869 Subordinated notes 153,030 — Total long-term borrowings $ 216,915 $ 53,869 FHLB Advances : The FHLB advances bear fixed rates, require interest-only monthly payments, and have maturity dates through March 2027. The weighted average rate of the FHLB advances was 0.59% and 0.73% at December 31, 2021 and 2020, respectively. The FHLB advances are collateralized by a blanket lien on qualifying residential first and junior mortgage loans which had a pledged balance of $522 million and $273 million at December 31, 2021 and 2020, respectively. The following table shows the maturity schedule of the FHLB advances as of December 31, 2021. Maturing in: (in thousands) 2022 $ 10,000 2023 — 2024 — 2025 5,000 2026 — Thereafter 10,000 $ 25,000 Junior Subordinated Debentures : Each of the junior subordinated debentures was issued to an underlying statutory trust (the “statutory trusts”), which issued trust preferred securities and common securities and used the proceeds from the issuance of the common and the trust preferred securities to purchase the junior subordinated debentures of the Company. The debentures represent the sole asset of the statutory trusts. All of the common securities of the statutory trusts are owned by the Company. The statutory trusts are not included in the consolidated financial statements. The net effect of all the documents entered into with respect to the trust preferred securities is that the Company, through payments on its debentures, is liable for the distributions and other payments required on the trust preferred securities. Interest on all debentures is current. Any applicable discounts (initially recorded to carry an acquired debenture at its then estimated fair value) are being accreted to interest expense over the remaining life of the debenture. All the junior subordinated debentures are currently callable and may be redeemed in part or in full, at par, plus any accrued but unpaid interest. At December 31, 2021 and 2020, $37 million and $24 million, respectively, of trust preferred securities qualify as Tier 1 capital. Subordinated Notes (the “Notes”) : In July 2021, the Company completed the private placement of $100 million in fixed-to-floating rate subordinated notes due in 2031, with a fixed annual rate of 3.125% for the first five years, and will reset quarterly thereafter to the then current three-month Secured Overnight Financing Rate (“SOFR”) plus 237.5 basis points. The Notes due in 2031 are redeemable beginning July 15, 2026 and quarterly thereafter on any interest payment date. In December 2021, Nicolet assumed two subordinated note issuances at a premium as the result of the County acquisition. One issuance was $30 million in fixed-to-floating rate subordinated notes due in 2028, with a fixed annual interest rate of 5.875% for the first five years, and will reset quarterly thereafter to the then current three-month LIBOR plus 2.88%. The second issuance was $22 million in fixed-to-floating rate subordinated notes due in 2030, with a fixed annual interest rate of 7.00% for the first five years, and will reset quarterly thereafter to the then current SOFR plus 687.5 basis points. The Notes due in 2028 are redeemable beginning June 1, 2023, and quarterly thereafter on any interest payment date, while the Notes due in 2030 are redeemable beginning June 30, 2025, and quarterly thereafter on any interest payment date. All Notes qualify as Tier 2 capital for regulatory purposes. The following table shows the breakdown of junior subordinated debentures and subordinated notes. As of 12/31/2021 As of 12/31/2020 (in thousands) Maturity Interest Par Unamortized Premium /(Discount) / Debt Issue Costs (1) Carrying Interest Carrying Junior Subordinated Debentures: Mid-Wisconsin Statutory Trust I (2) 12/15/2035 1.63 % 10,310 (2,773) 7,537 1.65 % 7,338 Baylake Capital Trust II (3) 9/30/2036 1.57 % 16,598 (3,411) 13,187 1.59 % 12,951 First Menasha Statutory Trust (4) 3/17/2034 3.01 % 5,155 (531) 4,624 3.02 % 4,580 County Bancorp Statutory Trust II (5) 9/15/2035 1.73 % 6,186 (1,125) 5,061 — % — County Bancorp Statutory Trust III (6) 6/15/2036 1.89 % 6,186 (1,065) 5,121 — % — Fox River Valley Capital Trust (7) 5/30/2033 6.40 % 3,610 (255) 3,355 — % — Total $ 48,045 $ (9,160) $ 38,885 $ 24,869 Subordinated Notes: Subordinated Notes due 2031 7/15/2031 3.13 % $ 100,000 $ (943) $ 99,057 — % $ — County Subordinated Notes due 2028 6/1/2028 5.88 % 30,000 402 30,402 — % — County Subordinated Notes due 2030 6/30/2030 7.00 % 22,400 1,171 23,571 — % — Total $ 152,400 $ 630 $ 153,030 $ — (1) Represents the remaining unamortized premium or discount on debt issuances assumed in acquisitions, and represents the unamortized debt issue costs for the debt issued directly by Nicolet. (2) The debentures, assumed in April 2013 as the result of an acquisition, have a floating rate of three-month LIBOR plus 1.43%, adjusted quarterly. (3) The debentures, assumed in April 2016 as a result of an acquisition, have a floating rate of three-month LIBOR plus 1.35%, adjusted quarterly. (4) The debentures, assumed in April 2017 as the result of an acquisition, have a floating rate of three-month LIBOR plus 2.79%, adjusted quarterly. (5) The debentures, assumed in December 2021 as the result of an acquisition, have a floating rate of three-month LIBOR plus 1.53%, adjusted quarterly. (6) The debentures, assumed in December 2021 as the result of an acquisition, have a floating rate of three-month LIBOR plus 1.69%, adjusted quarterly. (7) The debentures, assumed in December 2021 as the result of an acquisition, have a floating rate of 5-year LIBOR plus 3.40%, which resets every five years. |
EMPLOYEE AND DIRECTOR BENEFIT P
EMPLOYEE AND DIRECTOR BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
EMPLOYEE AND DIRECTOR BENEFIT PLANS | EMPLOYEE AND DIRECTOR BENEFIT PLANS The Company sponsors two deferred compensation plans, one for certain key management employees and another for directors. Under the management plan, employees designated by the Board of Directors may elect to defer compensation and the Company may at its discretion make nonelective contributions on behalf of one or more eligible plan participants. Upon retirement, termination of employment or at their election, the employee shall become entitled to receive the deferred amounts plus earnings thereon. The liability for the cumulative employee contributions and earnings thereon at December 31, 2021 and 2020 totaled approximately $2.0 million and $1.5 million, respectively, and is included in other liabilities on the consolidated balance sheets. The Company recorded discretionary contributions totaling $5.7 million and $1.4 million during 2021 and 2020, respectively, to selected recipients, which vested immediately and were fully expensed upon grant. Under the director plan, participating directors may defer up to 100% of their Board compensation towards the purchase of Company common stock at market prices on a quarterly basis that is held in a Rabbi Trust and distributed when each such participating director ends his or her board service. During 2021 and 2020, the director plan purchased 1,018 and 2,561 shares of Company common stock valued at approximately $73,000 and $149,000, respectively. Common stock valued at approximately $366,000 (and representing 4,737 shares) and $20,157 (and representing 282 shares) was distributed to past directors during 2021 and 2020, respectively. The common stock outstanding and the related director deferred compensation liability are offsetting components of the Company’s equity in the amount of $1.1 million at December 31, 2021 and $1.2 million at December 31, 2020 representing 27,762 shares and 31,481 shares, respectively. The Company sponsors a 401(k) savings plan under which eligible employees may choose to save up to 100% of salary compensation on either a pre-tax or after-tax basis, subject to certain IRS limits. Under the plan, the Company matches 100% of participating employee contributions up to 6% of the participant’s eligible compensation. The Company contribution vests over five years. The Company can make additional annual discretionary profit sharing contributions, as determined by the Board of Directors. During 2021, 2020 and 2019, the Company’s 401(k) expense was approximately $2.5 million (including a $0.5 million profit |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company may grant stock options and restricted stock under its stock-based compensation plans to certain officers, employees and directors. These plans are administered by a committee of the Board of Directors. The Company’s stock-based compensation plans at December 31, 2021 are described below. 2011 Long-Term Incentive Plan (“2011 LTIP”) : The Company’s 2011 LTIP, as subsequently amended with shareholder approval, has reserved 3,000,000 shares of the Company’s common stock for potential stock-based awards. This plan provides for certain stock-based awards such as, but not limited to, stock options, stock appreciation rights and restricted common stock, as well as cash performance awards. As of December 31, 2021, approximately 0.9 million shares were available for grant under this plan. 2002 Stock Incentive Plan : The Company’s 2002 Stock Incentive Plan, as subsequently amended with shareholder approval, reserved shares of the Company’s common stock for potential stock options. This plan became fully utilized in 2012 and no further awards may be granted under this plan. Acquired Equity Incentive Plan : In 2016, the Company assumed sponsorship of an equity incentive plan of an acquired company to allow for that company’s already granted awards that became exercisable upon acquisition to be honored. No further awards may be granted under this assumed plan. Stock option grants generally will expire ten years after the date of grant, have an exercise price equal to the Company’s closing stock price on the date of grant, and will become exercisable based upon vesting terms determined by the committee. Restricted stock grants generally are issued at the Company’s closing stock price on the date of grant, are restricted as to transfer, but are not restricted as to dividend payments or voting rights, and the transfer restrictions lapse over time, depending upon vesting terms provided for in the grant and contingent upon continued employment. A Black-Scholes model is utilized to estimate the fair value of stock option grants. See Note 1 for the Company’s accounting policy on stock-based compensation. The weighted average assumptions used in the model for valuing stock option grants were as follows. 2021 2020 2019 Dividend yield — % — % — % Expected volatility 30 % 25 % 25 % Risk-free interest rate 1.19 % 1.35 % 1.75 % Expected average life 7 years 7 years 7 years Weighted average per share fair value of options $ 26.33 $ 20.55 $ 21.30 A summary of the Company’s stock option activity is summarized below. Stock Options Option Shares Weighted Average Weighted Average Remaining Life (Years) Aggregate Intrinsic Value (in thousands) Outstanding – December 31, 2018 1,581,699 $ 40.77 Granted 203,000 69.69 Exercise of stock options * (337,428) 24.15 Forfeited (3,538) 27.43 Outstanding – December 31, 2019 1,443,733 $ 48.75 7.4 $ 36,428 Granted 54,500 69.44 Exercise of stock options * (60,773) 26.51 Forfeited — — Outstanding – December 31, 2020 1,437,460 $ 50.47 6.6 $ 23,840 Granted 450,000 77.99 Exercise of stock options * (53,214) 34.40 Forfeited (1,000) 48.85 Outstanding – December 31, 2021 1,833,246 $ 57.69 6.6 $ 51,426 Exercisable – December 31, 2021 1,025,846 $ 48.30 5.4 $ 38,410 *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, and accordingly 10,354 shares, 18,952 shares, and 142,752 shares were surrendered during 2021, 2020, and 2019, respectively. Intrinsic value represents the amount by which the fair value of the underlying stock exceeds the exercise price of the stock options. The intrinsic value of options exercised in 2021, 2020, and 2019 was approximately $2.2 million, $2.5 million, and $13.9 million, respectively. The following options were outstanding at December 31, 2021. Number of Shares Weighted Average Weighted Average Outstanding Exercisable Outstanding Exercisable Outstanding Exercisable $16.50 – $40.00 190,496 190,496 $ 31.51 $ 31.51 3.7 3.7 $40.01 – $50.00 791,750 632,950 48.86 48.86 5.3 5.3 $50.01 – $60.00 153,500 113,300 56.17 56.27 6.0 5.9 $60.01 – $70.00 20,000 6,000 63.61 62.64 8.2 7.9 $70.01 – $84.73 677,500 83,100 75.55 70.63 8.9 7.9 1,833,246 1,025,846 $ 57.69 $ 48.30 6.6 5.4 A summary of the Company’s restricted stock activity is summarized below. Restricted Stock Restricted Shares Weighted Average Grant Outstanding – December 31, 2018 29,512 $ 39.37 Granted 12,498 67.59 Vested * (19,081) 51.77 Forfeited (408) 16.50 Outstanding – December 31, 2019 22,521 $ 44.94 Granted 19,672 60.29 Vested * (23,268) 50.90 Forfeited — — Outstanding – December 31, 2020 18,925 $ 53.57 Granted 33,153 75.83 Vested * (25,831) 64.53 Forfeited (446) 41.44 Outstanding – December 31, 2021 25,801 $ 71.42 *The terms of the restricted stock agreements permit the surrender of shares to the Company upon vesting in order to satisfy applicable tax withholding at the minimum statutory withholding rate, and accordingly 3,215 shares, 4,733 shares, and 4,688 shares were surrendered during 2021, 2020, and 2019, respectively. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY The Board of Directors has authorized the repurchase of Nicolet’s outstanding common stock through its common stock repurchase program. During 2021, $61 million was utilized to repurchase and cancel over 793,000 common shares at a weighted average price of $77.50. As of December 31, 2021, there remained $69 million authorized under the repurchase program to be utilized from time-to-time to repurchase common shares in the open market, through block transactions or in private transactions. See Note 15 for additional information on common stock repurchases in private transactions with related parties. On September 3, 2021, in connection with its acquisition of Mackinac, the Company issued 2,337,230 shares of its common stock for stock consideration valued at $180 million plus cash consideration of $49 million. Approximately $0.4 million in direct stock issuance costs for the merger were incurred and charged against additional paid-in capital. See Note 2 for additional information on the Mackinac acquisition. On December 3, 2021, in connection with its acquisition of County, the Company issued 2,366,243 shares of its common stock for stock consideration valued at $176 million plus cash consideration of $48 million. Approximately $0.4 million in direct stock issuance costs for the merger were incurred and charged against additional paid-in capital. See Note 2 for additional information on the County acquisition. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The current and deferred amounts of income tax expense were as follows. Years Ended December 31, (in thousands) 2021 2020 2019 Current $ 14,138 $ 29,764 $ 15,353 Deferred 6,332 (9,288) 1,105 Income tax expense $ 20,470 $ 20,476 $ 16,458 The differences between the income tax expense recognized and the amount computed by applying the statutory federal income tax rate of 21% to the income before income tax expense, less noncontrolling interest, for the years ended as indicated are included in the following table. Years Ended December 31, (in thousands) 2021 2020 2019 Tax on pretax income, less noncontrolling interest, at statutory rates $ 17,023 $ 16,926 $ 14,931 State income taxes, net of federal effect 5,064 5,030 3,672 Tax-exempt interest income (520) (527) (609) Non-deductible interest disallowance 3 14 29 Increase in cash surrender value life insurance (570) (738) (573) Non-deductible business entertainment 119 170 189 Stock-based employee compensation (618) (839) (2,347) Non-deductible compensation 163 272 3,122 Sale of UFS — (109) (2,176) Other, net (194) 277 220 Income tax expense $ 20,470 $ 20,476 $ 16,458 The net deferred tax asset includes the following amounts of deferred tax assets and liabilities. (in thousands) December 31, 2021 December 31, 2020 Deferred tax assets: ACL-Loans $ 14,650 $ 9,328 Net operating loss carryforwards 3,800 1,692 Compensation 9,194 5,822 Purchase of noncontrolling interest — 2,112 Other 2,605 2,949 Other real estate 1,364 538 Total deferred tax assets 31,613 22,441 Deferred tax liabilities: Premises and equipment (3,860) (1,577) Prepaid expenses (1,110) (1,010) Investment securities (1,678) (451) Core deposit and other intangibles (5,278) (1,777) Purchase accounting adjustments to liabilities (1,725) (1,969) MSR and LSR assets (8,726) (2,269) Other (2,462) (282) Unrealized gain on securities AFS (1,392) (4,959) Total deferred tax liabilities (26,231) (14,294) Net deferred tax assets $ 5,382 $ 8,147 A valuation allowance is required if it is more likely than not that some portion of the deferred tax asset will not be realized. At December 31, 2021 and 2020, no valuation allowance was determined to be necessary. At December 31, 2021, the Company had a federal and state net operating loss carryforward of $11.9 million and $18.8 million, respectively. The entire federal and state net operating loss carryforwards were the result of the Company’s acquisitions. The federal and state net operating loss carryovers resulting from the acquisitions have been included in the IRC section 382 limitation calculation and are being limited to the overall amount expected to be realized. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, financial guarantees, and standby letters of credit. Such commitments may involve, to varying degrees, elements of credit risk in excess of amounts recognized on the consolidated balance sheets. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and issuing letters of credit as they do for on-balance sheet instruments. See Note 1 for the Company’s accounting policy on commitments, contingencies, and the allowance for credit losses-unfunded commitments and see Note 4 for information on the allowance for credit losses-unfunded commitments. A summary of the contract or notional amount of the Company’s exposure to off-balance sheet risk was as follows. (in thousands) December 31, 2021 December 31, 2020 Commitments to extend credit $ 1,433,881 $ 950,287 Financial standby letters of credit 13,562 8,241 Performance standby letters of credit 7,336 8,366 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commercial-related commitments to extend credit represented 80% and 78% of the total year-end commitments for 2021 and 2020, respectively, and were predominantly commercial lines of credit that carry a term of one year or less. The commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Financial and performance standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Financial standby letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and the third party, while performance standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party. Both of these guarantees are primarily issued to support public and private borrowing arrangements and, generally, have terms of one year or less. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company holds collateral, which may include accounts receivable, inventory, property, equipment, and income-producing properties, supporting those commitments if deemed necessary. In the event the customer does not perform in accordance with the terms of the agreement with the third-party, the Company would be required to fund the commitment. The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount. If the commitment is funded, the Company would be entitled to seek recovery from the customer. Interest rate lock commitments to originate residential mortgage loans held for sale and forward commitments to sell residential mortgage loans held for sale are considered derivative instruments (“mortgage derivatives”) and the contractual amounts were $50 million and $1 million, respectively, at December 31, 2021. In comparison, interest rate lock commitments to originate residential mortgage loans held for sale and forward commitments to sell residential mortgage loans held for sale totaled $113 million and $20 million, respectively, at December 31, 2020. The net fair value of these mortgage derivatives combined was a net gain of $0.1 million at December 31, 2021, compared to a net loss of $0.2 million at December 31, 2020. The Company has federal funds lines available with other financial institutions where funds may be borrowed on a short-term basis at the market rate in effect at the time of the borrowing. Federal funds lines of $195 million were available at December 31, 2021, compared to $175 million at December 31, 2020. In the normal course of business, the Company is involved in various legal proceedings. In the opinion of management, any liability resulting from such proceedings would not have a material adverse effect on the consolidated financial statements. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS The Company conducts transactions, in the normal course of business, with its directors and officers, including companies in which they have a beneficial interest. The Company is required to disclose material related party transactions, other than certain compensation arrangements, entered into in the normal course of business. It is the Company’s policy to comply with federal regulations that require that these transactions with directors and executive officers be made on substantially the same terms as those prevailing at the time made for comparable transactions to other persons. Related party loans totaled approximately $113 million and $89 million at December 31, 2021 and 2020, respectively. Nicolet has an active common stock repurchase program that allows for the repurchase of common stock in the open market, through block transactions, or in private transactions. During 2021, Nicolet repurchased common stock in a private transaction from one executive, Ann K. Lawson, including 2,193 shares for $0.2 million (or an average cost per share of $76.14). In comparison, during 2020, Nicolet repurchased common stock in private transactions from two executives, including 5,851 shares for $0.4 million (or an average cost per share of $71.45) from Robert B. Atwell and 5,852 shares for $0.4 million (or an average cost per share of $71.45) from Michael E. Daniels. These private transactions were made in conjunction with large stock option exercises by the executives. See Note 11 for additional information on stock option activity and see Note 12 for additional information on the common stock repurchase program. As described in Note 1, the Company had a 50% ownership in a joint venture with the Firm in connection with the Company’s headquarters facility. The Firm is considered a related party, as one of its principals is a Board member and shareholder of the Company. Effective December 31, 2020, the Bank purchased the 50% ownership interest from the Firm for $8 million, to improve efficiencies in process and organizational structure, and to reflect that the Bank had expanded to occupy the majority of the building. Thus, at December 31, 2020, the Bank was the sole owner and managing member of the JV, with the JV operating as a wholly owned subsidiary of the Bank solely to hold the headquarters facility. Prior to this purchase, the Bank incurred approximately $1.3 million and $1.2 million in annual rent expense to the JV during 2020 and 2019, respectively. In October 2013, the Company entered into a lease for a branch location in a facility owned by a different member of the Company’s Board and incurred annual rent expense of $124,000, $122,000, and $112,000, on this facility during 2021, 2020, and 2019, respectively. During 2019, this same Board member participated in a competitive bid process for and was awarded the contract as general contractor for the 2019 reconstruction of a different existing branch location. Total payments for the 2019 |
ASSET GAINS (LOSSES), NET
ASSET GAINS (LOSSES), NET | 12 Months Ended |
Dec. 31, 2021 | |
Assets Gains (Losses), Net [Abstract] | |
ASSET GAINS (LOSSES), NET | ASSET GAINS (LOSSES), NET Components of the net gains (losses) on assets are as follows. Years Ended December 31, (in thousands) 2021 2020 2019 Gains (losses) on sales of securities AFS, net $ (283) $ 395 $ (22) Gains (losses) on equity securities, net 3,445 (987) 1,115 Gains (losses) on sales of OREO, net 597 157 (88) Write-downs of OREO (28) (1,040) (300) Write-down of other investment — (100) (100) Gains (losses) on sales of other investments, net 550 — 7,442 Gains (losses) on sales or dispositions of other assets, net (100) (230) (150) Asset gains (losses), net $ 4,181 $ (1,805) $ 7,897 |
REGULATORY CAPITAL REQUIREMENTS
REGULATORY CAPITAL REQUIREMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Capital Requirements Under Banking Regulations [Abstract] | |
REGULATORY CAPITAL REQUIREMENTS | REGULATORY CAPITAL REQUIREMENTS The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk-weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. The Company and Bank must also maintain a “capital conservation buffer” consisting of CET1 in an amount equal to 2.5% of risk-weighted assets in order to avoid certain restrictions. The capital conservation buffer effectively increases the minimum well-capitalized CET1 capital, Tier 1 capital, and total capital ratios for U.S. banking organizations to 7.0%, 8.5%, and 10.5%, respectively. Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain minimum amounts and ratios of Total, Tier 1 and common equity Tier 1 (“CET1”) capital (as defined in the regulations) to risk-weighted assets (as defined), and Tier 1 capital (as defined) to average assets (as defined). Management believes the Company and the Bank met all capital adequacy requirements to which they are subject as of December 31, 2021 and 2020. As of December 31, 2021 and 2020, the most recent notifications from the regulatory agencies categorized the Bank as well-capitalized under the regulatory framework for prompt corrective action. To be categorized as well-capitalized, an institution must maintain minimum Total risk-based, Tier 1 risk-based, CET1 risk-based and Tier 1 leverage ratios as set forth in the following table. There are no conditions or events since these notifications that management believes have changed the Bank’s category. The Company’s and the Bank’s actual regulatory capital amounts and ratios are presented in the following table. Actual For Capital Adequacy To Be Well Capitalized Under Prompt Corrective Action Provisions (2) (in thousands) Amount Ratio (1) Amount Ratio (1) Amount Ratio (1) December 31, 2021 Company Total risk-based capital $ 793,410 13.8 % $ 459,648 8.0 % Tier 1 risk-based capital 604,199 10.5 344,736 6.0 Common equity Tier 1 capital 567,095 9.9 258,552 4.5 Leverage 604,199 9.4 256,990 4.0 Bank Total risk-based capital $ 700,869 12.2 % $ 459,476 8.0 % $ 574,345 10.0 % Tier 1 risk-based capital 664,688 11.6 344,607 6.0 459,476 8.0 Common equity Tier 1 capital 664,688 11.6 258,455 4.5 373,324 6.5 Leverage 664,688 10.3 256,990 4.0 321,237 5.0 December 31, 2020 Company Total risk-based capital $ 406,325 12.9 % $ 252,683 8.0 % Tier 1 risk-based capital 385,068 12.2 189,512 6.0 Common equity Tier 1 capital 361,162 11.4 142,134 4.5 Leverage 385,068 9.0 170,402 4.0 Bank Total risk-based capital $ 351,081 11.2 % $ 251,769 8.0 % $ 314,711 10.0 % Tier 1 risk-based capital 329,824 10.5 188,826 6.0 251,769 8.0 Common equity Tier 1 capital 329,824 10.5 141,620 4.5 204,562 6.5 Leverage 329,824 7.8 170,025 4.0 212,532 5.0 (1) The Total risk-based capital ratio is defined as Tier 1 capital plus tier 2 capital divided by total risk-weighted assets. The Tier 1 risk-based capital ratio is defined as Tier 1 capital divided by total risk-weighted assets. CET1 risk-based capital ratio is defined as Tier 1 capital, with deductions for goodwill and other intangible assets (other than mortgage servicing assets), net of associated deferred tax liabilities, and limitations on the inclusion of deferred tax assets, mortgage servicing assets and investments in other financial institutions, in each case as provided further in the rules, divided by total risk-weighted assets. The Leverage ratio is defined as Tier 1 capital divided by the most recent quarter’s average total assets as adjusted. (2) Prompt corrective action provisions are not applicable at the bank holding company level. Dividends declared by the Bank that exceed the retained net income for the most current year plus retained net income for the preceding two years must be approved by Federal regulatory agencies. At December 31, 2021, the Bank could pay dividends of approximately $7 million to the Company without seeking regulatory approval. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value represents the estimated price at which an orderly transaction to sell an asset or transfer a liability would take place between market participants at the measurement date under current market conditions (i.e., an exit price concept), and is a market-based measurement versus an entity-specific measurement. The Company records and/or discloses certain financial instruments on a fair value basis. These financial assets and financial liabilities are measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the observability of the assumptions used to determine fair value. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from independent sources. Unobservable inputs are inputs that reflect assumptions of the reporting entity about how market participants would price the asset or liability based on the best information available under the circumstances. The three fair value levels are: • Level 1 - quoted market prices in active markets for identical assets or liabilities that a company has the ability to access at the measurement date • Level 2 - inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly • Level 3 – significant unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity In instances where the fair value measurement is based on inputs from different levels, the level within which the entire fair value measurement will be categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. This assessment of the significance of an input requires management judgment. Recurring basis fair value measurements: The following table presents the balances of assets and liabilities measured at fair value on a recurring basis for the periods presented. (in thousands) Fair Value Measurements Using Measured at Fair Value on a Recurring Basis: Total Level 1 Level 2 Level 3 December 31, 2021 U.S. government agency securities $ 191,277 $ — $ 191,277 $ — State, county and municipals 312,737 — 310,316 2,421 Mortgage-backed securities 271,262 — 270,260 1,002 Corporate debt securities 146,385 — 141,743 4,642 Securities AFS $ 921,661 $ — $ 913,596 $ 8,065 Other investments (equity securities) $ 5,660 $ 5,660 $ — $ — Derivative assets 1,064 — 1,064 — Derivative liabilities 1,064 — 1,064 — December 31, 2020 U.S. government agency securities $ 63,451 $ — $ 63,451 $ — State, county and municipals 231,868 — 231,868 — Mortgage-backed securities 162,495 — 162,495 — Corporate debt securities 81,523 — 78,393 3,130 Securities AFS $ 539,337 $ — $ 536,207 $ 3,130 Other investments (equity securities) $ 3,567 $ 3,567 $ — $ — Derivative assets 1,801 — 1,801 — Derivative liabilities 1,801 — 1,801 — The following is a description of the valuation methodologies used by the Company for the assets and liabilities measured at fair value on a recurring basis, noted in the tables above. Where quoted market prices on securities exchanges are available, the investments are classified as Level 1. Level 1 investments primarily include exchange-traded equity securities. If quoted market prices are not available, fair value is generally determined using prices obtained from independent pricing vendors who use pricing models (with typical inputs including benchmark yields, reported trades for similar securities, issuer spreads or relationship to other benchmark quoted securities), or discounted cash flows, and are classified as Level 2. Examples of these investments include U.S. government agency securities, mortgage-backed securities, obligations of state, county and municipals, and certain corporate debt securities. Finally, in certain cases where there is limited activity or less transparency around inputs to the estimated fair value, investments are classified within Level 3 of the hierarchy. Examples of these include private corporate debt securities, which are primarily trust preferred security investments, as well as certain municipal bonds and mortgage-backed securities. At December 31, 2021 and 2020, it was determined that carrying value was the best approximation of fair value for these Level 3 securities, based primarily on the internal analysis performed on these securities. The fair value of the derivative assets and liabilities is determined using a discounted cash flow analysis of the expected cash flows of each derivative, which considers the contractual terms of the underlying derivative financial instrument and observable market-based inputs, such as interest rate curves. The following table presents the changes in Level 3 securities AFS measured at fair value on a recurring basis. (in thousands) Years Ended Level 3 Fair Value Measurements: December 31, 2021 December 31, 2020 Balance at beginning of year $ 3,130 $ 3,130 Acquired balances 4,935 — Paydowns/Sales/Settlements — — Balance at end of year $ 8,065 $ 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 the 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 December 31, 2021 Collateral dependent loans $ 36,230 $ — $ — $ 36,230 OREO 11,955 — — 11,955 MSR asset 12,436 — — 12,436 LSR asset 20,055 — — 20,055 December 31, 2020 Collateral dependent loans $ 7,633 $ — $ — $ 7,633 OREO 3,608 — — 3,608 MSR asset 9,230 — — 9,230 The following is a description of the valuation methodologies used by the Company for the items noted in the table above. For individually evaluated collateral dependent loans, the fair value is based upon the present value of expected future cash flows discounted at the loan’s effective interest rate, the estimated fair value of the underlying collateral, 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 fair value of the LSR asset is determined by stratifying the rights into tranches based on predominant characteristics, such as interest rate, loan type, and investor type, and a valuation model is used to calculate the present value of the expected future cash flows for each tranche. The servicing valuation models incorporate 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. December 31, 2021 (in thousands) Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 595,292 $ 595,292 $ 595,292 $ — $ — Certificates of deposit in other banks 21,920 22,236 — 22,236 — Securities AFS 921,661 921,661 — 913,596 8,065 Securities HTM 651,803 648,394 — 648,394 — Other investments 44,008 44,008 5,660 32,110 6,238 Loans held for sale 6,447 6,616 — 6,616 — Loans, net 4,572,164 4,606,851 — — 4,606,851 MSR asset 12,436 15,599 — — 15,599 LSR asset 20,055 20,055 — — 20,055 Accrued interest receivable 15,277 15,277 15,277 — — Financial liabilities: Deposits $ 6,465,916 $ 6,463,064 $ — $ — $ 6,463,064 Long-term borrowings 216,915 216,092 — 25,097 190,995 Accrued interest payable 3,078 3,078 3,078 — — December 31, 2020 (in thousands) Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 802,859 $ 802,859 $ 802,859 $ — $ — Certificates of deposit in other banks 29,521 31,053 — 31,053 — Securities AFS 539,337 539,337 — 536,207 3,130 Other investments 27,619 27,619 3,567 20,155 3,897 Loans held for sale 21,450 22,329 — 22,329 — Loans, net 2,756,928 2,834,452 — — 2,834,452 MSR asset 9,230 9,276 — — 9,276 Accrued interest receivable 9,869 9,869 9,869 — — Financial liabilities: Deposits $ 3,910,399 $ 3,917,121 $ — $ — $ 3,917,121 Long-term borrowings 53,869 53,859 — 29,488 24,371 Accrued interest payable 799 799 799 — — The carrying value of certain assets and liabilities such as cash and cash equivalents, accrued interest receivable, nonmaturing deposits, short-term borrowings, and accrued interest payable approximate their estimated fair value due to their immediate and shorter term maturities. 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 the 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 based on market participants. Collateral-dependent 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 valuation represents a Level 3 measurement. Lending-related commitments : At December 31, 2021 and 2020, 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. |
PARENT COMPANY ONLY FINANCIAL I
PARENT COMPANY ONLY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
PARENT COMPANY ONLY FINANCIAL INFORMATION | PARENT COMPANY ONLY FINANCIAL INFORMATION Condensed Parent Company only financial statements of Nicolet Bankshares, Inc. follow. Balance Sheets December 31, (in thousands) 2021 2020 Assets Cash and due from subsidiary $ 84,656 $ 49,998 Investments 9,684 6,742 Investments in subsidiaries 998,032 513,736 Other assets 1,503 177 Total assets $ 1,093,875 $ 570,653 Liabilities and Stockholders’ Equity Junior subordinated debentures $ 38,885 $ 24,869 Subordinated notes 153,030 — Other liabilities 10,069 6,595 Stockholders’ equity 891,891 539,189 Total liabilities and stockholders’ equity $ 1,093,875 $ 570,653 Statements of Income Years Ended December 31, (in thousands) 2021 2020 2019 Interest income $ 18 $ 39 $ 55 Interest expense 2,959 2,313 2,936 Net interest expense (2,941) (2,274) (2,881) Dividend income from subsidiaries 65,000 60,215 50,363 Operating expense (2,562) (886) (321) Gain (loss) on investments, net 3,995 (1,087) 1,015 Income tax benefit 437 1,102 506 Earnings before equity in undistributed income (loss) of subsidiaries 63,929 57,070 48,682 Equity in undistributed income (loss) of subsidiaries (3,277) 3,052 5,959 Net income attributable to Nicolet Bankshares, Inc. $ 60,652 $ 60,122 $ 54,641 Statements of Cash Flows Years Ended December 31, (in thousands) 2021 2020 2019 Cash Flows From Operating Activities: Net income attributable to Nicolet Bankshares, Inc. $ 60,652 $ 60,122 $ 54,641 Adjustments to reconcile net income to net cash provided by operating activities: Accretion of discounts on borrowings 584 486 515 (Gain) loss on investments, net (3,995) 1,087 (1,015) Change in other assets and liabilities, net 1,013 1,786 (421) Equity in undistributed (income) loss of subsidiaries, net of dividends 3,277 (3,052) (5,959) Net cash provided by operating activities 61,531 60,429 47,761 Cash Flows from Investing Activities: Proceeds from sale of investments 4,105 185 — Purchases of investments (5,049) (1,179) (2,484) Net cash paid in business combinations (63,892) (21,644) (412) Net cash used in investing activities (64,836) (22,638) (2,896) Cash Flows From Financing Activities: Purchase and retirement of common stock (62,583) (42,088) (28,460) Proceeds from issuance of common stock, net 2,382 2,055 8,742 Capitalized issuance costs, net (789) — — Repayment of long-term borrowings — (18,186) — Proceeds from issuance of subordinated notes, net 98,953 — — Net cash provided by (used in) financing activities 37,963 (58,219) (19,718) Net increase (decrease) in cash and due from subsidiary 34,658 (20,428) 25,147 Beginning cash and due from subsidiary 49,998 70,426 45,279 Ending cash and due from subsidiary $ 84,656 $ 49,998 $ 70,426 |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE See Note 1 for the Company’s accounting policy on earnings per common share. Presented below are the calculations for basic and diluted earnings per common share. Years Ended December 31, (in thousands, except per share data) 2021 2020 2019 Net income attributable to Nicolet Bankshares, Inc. $ 60,652 $ 60,122 $ 54,641 Weighted average common shares outstanding 10,736 10,337 9,562 Effect of dilutive common stock awards 409 204 338 Diluted weighted average common shares outstanding 11,145 10,541 9,900 Basic earnings per common share $ 5.65 $ 5.82 $ 5.71 Diluted earnings per common share $ 5.44 $ 5.70 $ 5.52 Options to purchase 0.1 million shares for the years ended December 31, 2021 and December 31, 2020, respectively, were excluded from the calculation of diluted earnings per common share as the effect of their exercise would have been anti-dilutive. Options to purchase less than 0.1 million shares for year ended December 31, 2019 were excluded from the calculation of diluted earnings per share as the effect of their exercise would have been anti-dilutive. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION See Note 1 for the Company’s accounting policy on revenue recognition in accordance with Topic 606. This guidance does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income categories such as gains or losses associated with mortgage servicing rights, derivatives, and income from BOLI are not within the scope of the new guidance. The main types of revenue contracts within the scope of Topic 606 include trust services fee income, brokerage fee income, service charges on deposit accounts, card interchange income, and certain other noninterest income. These contracts are discussed in detail below. Trust services and brokerage fee income : A contract between the Company and its customers to provide fiduciary and / or investment administration services on trust accounts and brokerage accounts in exchange for a fee. Trust services and brokerage fee income is generally based upon the month-end market value of the assets under management and the applicable fee rate, which is recognized over the period the underlying trust or brokerage account is serviced (generally on a monthly basis). Such contracts are generally cancellable at any time, with the customer subject to a pro-rated fee in the month of termination. Service charges on deposit accounts : The deposit contract obligates the Company to serve as a custodian of the customer’s deposited funds and generally can be terminated at will by either party. This contract permits the customer to access the funds on deposit and request additional services related to the deposit account. Service charges on deposit accounts consist of account analysis fees (net fees earned on analyzed business and public checking accounts), monthly service charges, nonsufficient fund (“NSF”) charges, and other deposit account related charges. The Company’s performance obligation for account analysis fees and monthly service charges is generally satisfied, and the related revenue recognized, over the period in which the service is provided (typically on a monthly basis); while NSF charges and other deposit account related charges are largely transactional based and the related revenue is recognized at the time the service is provided. Card interchange income : A contract between the Company, as a card-issuing bank, and its customers whereby the Company receives a transaction fee from the merchant’s bank whenever a customer uses a debit or credit card to make a purchase. The performance obligation is completed and the fees are recognized as the service is provided (i.e., when the customer uses a debit or credit card). Other noninterest income : Other noninterest income includes several items, such as wire transfer income, check cashing fees, check printing fees, safe deposit box rental fees, management fee income, and consulting fees. These fees are generally recognized at the time the service is provided. |
OTHER ASSETS AND OTHER LIABILIT
OTHER ASSETS AND OTHER LIABILITIES HELD FOR SALE | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
OTHER ASSETS AND OTHER LIABILITIES HELD FOR SALE | OTHER ASSETS AND OTHER LIABILITIES HELD FOR SALE On September 7, 2021, Nicolet entered into a Purchase and Assumption Agreement (the “Birmingham Agreement”) with Bank of Ann Arbor to sell Nicolet’s Birmingham, Michigan branch, including legacy mBank’s asset-based lending team (the “Birmingham Sale”). Pursuant to the terms of the Birmingham Agreement, Bank of Ann Arbor agreed to assume certain deposit liabilities and to acquire certain loans, as well as cash, personal property and other fixed assets associated with the Birmingham branch. The combined loan and deposit balances of the Birmingham branch (excluding certain loans and deposits not subject to the Birmingham Agreement) were approximately $199 million and $51 million, respectively, as of December 31, 2021. The Birmingham Sale closed on January 21, 2022. |
NATURE OF BUSINESS AND SIGNIF_2
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation : The consolidated financial statements of the Company include the accounts of its subsidiaries. The JV underlies the noncontrolling interest reflected in the consolidated financial statements until late 2020 when the Bank purchased the remaining interest as discussed in Note 1 above under Nature of Banking Activities and Subsidiaries. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and conform to general practices within the banking industry. All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements. Results of operations of companies purchased, if any, are included from the date of acquisition. |
Operating Segment | Operating Segment : The consolidated income of the Company is derived principally from the Bank, which conducts lending (primarily commercial and agricultural-based loans, as well as residential and consumer loans) and deposit gathering (including other banking- and deposit-related products and services, such as ATMs, safe deposit boxes, check cashing, wires, and debit cards) to businesses, consumers and governmental units principally in its trade area of northeast and central Wisconsin, and northern Michigan and the upper peninsula of Michigan, trust services, brokerage services (delivered through the Bank and Nicolet Advisory), and the support to deliver, fund and manage all such banking and wealth management services to its customer base. The individual contribution from wealth management was not significant to the consolidated balance sheet or net income for 2021, 2020, or 2019. While the chief operating decision makers monitor the revenue streams of the various products and services, and evaluate costs, balance sheet positions and quality, all such products, services and activities are directly or indirectly related to the business of community banking, with no regular, formal or material segment delineations. Operations are managed and financial performance is evaluated on a company-wide basis, and accordingly, all the financial service operations are considered by management to be aggregated in one reportable operating segment. |
Use of Estimates | Use of Estimates : Preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future. Estimates are used in accounting for, among other items, the allowance for credit losses, valuation of loans in acquisition transactions, useful lives for depreciation and amortization, fair value of financial instruments, impairment calculations, valuation of deferred tax assets, uncertain income tax positions, and contingencies. Estimates that are particularly susceptible to significant change for the Company include the determination of the allowance for credit losses-loans, 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, |
Business Combinations | Business Combinations : The Company accounts for business combinations under the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations |
Cash and Cash Equivalents | Cash and Cash Equivalents: For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash and due from banks, interest-earning deposits in other banks with original maturities of less than 90 days, if any, and federal funds sold. The Bank maintains amounts in due from banks which, at times, may exceed federally insured limits. Management monitors these correspondent relationships. The Bank has not experienced any losses in such accounts. The Bank may have restrictions on cash and due from banks as it is required to maintain certain vault cash and reserve balances with the Federal Reserve Bank to meet specific reserve requirements. |
Securities Available for Sale and Held to Maturity | Securities Available for Sale : Securities are classified as AFS on the consolidated balance sheets at the time of purchase and include 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. Securities classified as AFS are carried at fair value, with unrealized gains or losses, net of related deferred income taxes, reported as increases or decreases in accumulated other comprehensive income. Realized gains or losses on sales of securities AFS (using the specific identification method) are included in the consolidated statements of income under asset gains (losses), net. Premiums and discounts are amortized or accreted into interest income over the estimated life of the related securities using the effective interest method. Securities Held to Maturity : Securities are classified as HTM on the consolidated balance sheets at the time of purchase and include those securities that the Company has both the positive intent and ability to hold to maturity. HTM securities are carried at amortized cost on the consolidated balance sheets. Premiums and discounts are amortized or accreted into interest income over the estimated life of the related securities using the effective interest method. |
Other Investments | Other Investments: Other investments include equity securities with readily determinable fair values, “restricted” equity securities, and private company securities. At December 31, 2021, other investments included $5.7 million of equity securities which are carried at their readily determinable fair values, $32.1 million of “restricted“ equity securities, and $6.2 million of private company securities. As a member of the Federal Reserve Bank System and the Federal Home Loan Bank (“FHLB”) System, the Bank is required to maintain an investment in the capital stock of these entities. These equity securities are “restricted” in that they can only be sold back to the respective institutions or another member institution at par. Therefore, they are less liquid than other exchange traded equity securities. As no ready market exists for these stocks, and they have no quoted market value, these investments are carried at cost. Also included are investments in other private companies that do not have quoted market prices, which are carried at cost less impairment charges, if any. Management’s evaluation of these other investments for impairment includes consideration of the financial condition and other available relevant information of the issuer. |
Loans Held for Sale | Loans Held for Sale : Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value as determined on an aggregate basis and generally consist of current production of certain fixed-rate residential first mortgages. The amount by which cost exceeds fair value is recorded as a valuation allowance and charged to earnings. Changes, if any, in the valuation allowance are included in earnings in the period in which the change occurs. As of December 31, 2021 and 2020, no valuation allowance was necessary. Loans held for sale may be sold servicing retained or servicing released, and are generally sold without recourse. The carrying value of mortgage loans sold with servicing retained is reduced by the amount allocated to the servicing right at the time of sale. Gains and losses on sales of mortgage loans held for sale are included in earnings in mortgage income, net. |
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 amount outstanding, net of deferred loan fees and costs, and any direct principal charge-off. 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 4 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 on the acquisition date. 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 4 for additional information and disclosures on loans. Prior to January 1, 2020, the Company initially classified acquired loans as either purchased credit impaired (“PCI”) loans (i.e., loans that reflect credit deterioration since origination and for which it was probable at acquisition that the Company would be unable to collect all contractually required payments) or purchased non-impaired loans (i.e., “performing acquired loans”). The |
Allowance for Credit Losses | Allowance for Credit Losses - Loans : The ACL-Loans represents management’s estimate of expected credit losses over the lifetime of the loan based on loans in the Company’s loan portfolio at the balance sheet date. The Company estimates the ACL-Loans based on the amortized cost basis of the underlying loan and has made an accounting policy election to exclude accrued interest from the loan’s amortized cost basis and the related measurement of the ACL-Loans. Estimating the amount of the ACL-Loans is a function of a number of factors, including but not limited to changes in the loan portfolio, net charge-offs, trends in past due and nonaccrual loans, and the level of potential problem loans, all of which may be susceptible to significant change. Actual credit losses, net of recoveries, are deducted from the ACL-Loans. Loans are charged-off when management believes that the collectability of the principal is unlikely. Subsequent recoveries, if any, are credited to the ACL-Loans. A provision for credit losses, which is a charge against income, is recorded to bring the ACL-Loans to a level that, in management’s judgment, is appropriate to absorb expected credit losses in the loan portfolio. Prior to January 1, 2020, the Company used an incurred loss impairment model to estimate the ACL-Loans. 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. Effective January 1, 2020, the Company uses a current expected credit loss model (“CECL”) to estimate the ACL-Loans. This methodology also considers historical loss rates and other qualitative adjustments, as well as a new forward-looking component that considers reasonable and supportable forecasts over the expected life of each loan. To develop the ACL-Loans estimate under the CECL model, the Company segments the loan portfolio into loan pools based on loan type and similar credit risk elements; performs an individual evaluation of PCD and other credit-deteriorated 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. To assess the overall appropriateness of the ACL-Loans, management applies an allocation methodology which focuses on evaluation of qualitative and environmental factors, including but not limited to: (i) evaluation of facts and issues related to specific loans; (ii) management’s ongoing review and grading of the loan portfolio; (iii) consideration of historical loan loss and delinquency experience on each portfolio segment; (iv) trends in past due and nonaccrual 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 PCD and other credit-deteriorated loans, which management defines as nonaccrual credit relationships over $250,000, collateral dependent loans, and other loans with evidence of credit deterioration. The specific reserve in the ACL-Loans for these credit deteriorated loans is equal to the aggregate collateral or discounted cash flow shortfall. Next, 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. Management also allocates the ACL-Loans using the qualitative and environmental factors mentioned above. Consideration is given to those current qualitative or environmental factors that are likely to cause estimated credit losses at 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. See Note 4 for additional information and disclosures on the ACL-Loans. Allocations to the ACL-Loans may be made for specific loans but the entire ACL-Loans is available for any loan that, in management’s judgment, should be charged-off or for which an actual loss is realized. The allowance analysis is reviewed by the Board on a quarterly basis in compliance with internal and regulatory requirements. Allowance for Credit Losses - Unfunded Commitments : In addition to the ACL-Loans, the Company has established an allowance for unfunded commitments, included in accrued interest payable and other liabilities on the consolidated balance sheets, representing expected credit losses over the contractual period for which the Company is exposed to credit risk resulting from a contractual obligation to extend credit. The ACL-Unfunded Commitments is maintained at a level that management believes is sufficient to absorb losses arising from unfunded loan commitments, and is determined quarterly based on methodology similar to the methodology for determining the ACL-Loans. See Note 4 for additional information on the ACL-Unfunded Commitments. |
Credit-Related Financial Instruments | Credit-Related Financial Instruments : In the ordinary course of business the Company has entered into financial instruments consisting of commitments to extend credit, financial standby letters of credit, and performance standby letters of credit. Financial standby letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and the third party, while performance standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party. Such financial instruments are recorded in the consolidated financial statements when they are funded. See Note 14 for additional information and disclosures on credit-related financial instruments. |
Transfers of Financial Assets | Transfers of Financial Assets : Transfers of financial assets, primarily in loan participation activities, are accounted for as sales only when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of the right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return assets. |
Premises and Equipment | Premises and Equipment : Premises and equipment are stated at cost less accumulated depreciation and amortization. Premises and equipment from acquisitions were recorded at estimated fair value on the respective dates of acquisition. Depreciation is computed on a straight-line basis over the estimated useful lives of the related assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful lives of the improvements or the terms of the related leases. Maintenance and repairs are expensed as incurred. See Note 5 for additional information on premises and equipment. Estimated useful lives of new premises and equipment generally range as follows: Building and improvements 25 – 40 years Leasehold improvements 5 – 15 years Furniture and equipment 3 – 10 years |
Operating Leases | Operating Leases : The Company accounts for its operating leases in accordance with ASC 842, Leases accrued interest receivable and other assets accrued interest payable and other liabilities |
Other Real Estate Owned ("OREO") | Other Real Estate Owned (“OREO”) : OREO acquired through partial or total satisfaction of loans or bank facilities no longer in use are carried at fair value less estimated costs to sell. Any write-down in the carrying value of loans or vacated bank premises at the time of transfer to OREO is charged to the ACL-Loans or to write-down of assets, respectively. OREO properties acquired in conjunction with acquisition transactions were recorded at fair value on the date of acquisition. Any subsequent write-downs to |
Goodwill and Other Intangibles | Goodwill and Other Intangibles : Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired. Goodwill is not amortized but, instead, is subject to impairment tests on at least an annual basis or more frequently if certain events or circumstances occur. Other intangibles include core deposit intangibles (which represent the value of acquired customer core deposit bases) and customer list intangibles. The core deposit intangibles have an estimated finite life, are amortized on an accelerated basis over a 10-year period, and are subject to periodic impairment evaluation. The customer list intangibles have finite lives, are amortized on a straight-line basis to expense over their initial weighted average life of approximately 12 years as of acquisition, and are subject to periodic impairment evaluation. See Note 6 for additional information on goodwill and other intangibles. |
Mortgage Servicing Rights ("MSRs") and Loan Servicing Rights ("LSRs") | Mortgage Servicing Rights (“MSRs”) : The Company sells originated residential mortgages into the secondary market and retains the right to service the loans sold. A mortgage servicing right asset (liability) is capitalized upon sale of such loans with the offsetting effect recorded as a gain (loss) on sale of loan in earnings (included in mortgage income, net), representing the then-current estimated fair value of future net cash flows expected to be realized for performing the servicing activities. MSRs when purchased (including MSRs purchased in acquisitions) are initially recorded at their then-estimated fair value. As the Company has not elected to measure any class of servicing assets under the fair value method, the Company utilizes the amortization method. MSRs are amortized in proportion to and over the period of estimated net servicing income, with the amortization charged to earnings (included in mortgage income, net). MSRs are carried at the lower of initial capitalized amount, net of accumulated amortization, or estimated fair value, and are included in other assets in the consolidated balance sheets. Loan servicing fee income for servicing loans is typically based on a contractual percentage of the outstanding principal and is recorded as income when earned (included in mortgage income, net with less material late fees and ancillary fees related to loan servicing). Loan Servicing Rights (“LSRs”) : The Company acquired loan servicing rights in connection with its acquisition of County Bancorp, Inc. (“County”) on December 3, 2021 (see Note 2 for additional information on the County acquisition). The LSRs were recorded at estimated fair value upon acquisition, and are subsequently accounted for utilizing the amortization method. Thus, the LSRs are amortized in proportion to and over the period of estimated net servicing income, with the amortization charged to earnings. The LSRs are assessed for impairment at each reporting date based on estimated fair value. Impairment is determined by stratifying the rights into tranches based on predominant characteristics, such as interest rate, loan type, and investor type. A valuation allowance is established through a charge to earnings to the extent that estimated fair value is less than the carrying amount of the servicing assets for an individual tranche. The valuation allowance is adjusted to reflect changes in the measurement of impairment through either recovery or additions to the valuation allocance, with such changes reported as a component of loan servicing fees on the consolidated statements of income. Fair value in excess of the carrying amount of servicing assets is not recognized. The amortization of loan servicing rights is reflected net of loan servicing fee income. Loan servicing fee income for |
Bank-owned Life Insurance ("BOLI") | Bank-owned Life Insurance (“BOLI”) : The Company owns BOLI on certain executives and employees. BOLI balances are recorded at their cash surrender values. Changes in the cash surrender values and death proceeds exceeding carrying values are included in BOLI income. |
Stock-based Compensation Plans | Stock-based Compensation : |
Income Taxes | Income Taxes : The Company files a consolidated federal income tax return and a combined state income tax return (both of which include the Company and its wholly owned subsidiaries). Accordingly, amounts equal to tax benefits of those subsidiaries having taxable federal losses or credits are reimbursed by the subsidiaries that incur federal tax liabilities. Amounts provided for income tax expense are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable under tax laws. Deferred income tax assets and liabilities are computed quarterly for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax rates applicable to the periods in which the differences are expected to affect taxable income. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through income tax expense. Valuation allowances are established when it is more likely than not that a portion of the full amount of the deferred tax asset will not be realized. In assessing the ability to realize deferred tax assets, management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies. At acquisition, deferred taxes were evaluated in respect to the acquired assets and assumed liabilities (including the acquired net operating losses), and a net deferred tax asset was recorded. Certain limitations within the provisions of the tax code are placed on the amount of net operating losses which can be utilized as part of acquisition accounting rules and were incorporated into the calculation of the deferred tax asset. In addition, a portion of the fair value discounts on PCD loans which resolved in the first twelve months after the acquisition were disallowed under provisions of the tax code. |
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 common shares adjusted for the dilutive effect of outstanding common stock awards, if any. See Note 20 for additional information on earnings per common share. |
Treasury Stock | Treasury Stock : Treasury stock is accounted for at cost on a first-in-first-out basis. It is the Company’s general practice to cancel treasury stock shares in the same quarter as purchased, and thus, not carry a treasury stock balance. |
Comprehensive Income | Comprehensive Income : Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on securities AFS, are reported in accumulated other comprehensive income, as a separate component of the equity section of the balance sheet. Realized gains or losses are reclassified to current period income. Changes in these items, along with net income, are components of comprehensive income. The Company presents comprehensive income in a separate consolidated statement of comprehensive income. |
Revenue Recognition | Revenue Recognition : Accounting principles ( Revenue from Contracts with Customers, Topic 606) require that an entity recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the |
Future Accounting Pronouncements | Future Accounting Pronouncements : In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
Reclassifications | Reclassifications : Certain amounts in the 2020 and 2019 consolidated financial statements have been reclassified to conform to the 2021 presentation. |
Fair Value Measurement | The carrying value of certain assets and liabilities such as cash and cash equivalents, accrued interest receivable, nonmaturing deposits, short-term borrowings, and accrued interest payable approximate their estimated fair value due to their immediate and shorter term maturities. 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 the 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 based on market participants. Collateral-dependent 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 valuation represents a Level 3 measurement. Lending-related commitments : At December 31, 2021 and 2020, 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. |
NATURE OF BUSINESS AND SIGNIF_3
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives of premises and equipment | Estimated useful lives of new premises and equipment generally range as follows: Building and improvements 25 – 40 years Leasehold improvements 5 – 15 years Furniture and equipment 3 – 10 years |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of assets acquired and liabilities assumed and preliminary purchase price allocation | A summary of the assets acquired and liabilities assumed in the County transaction, as of the acquisition date, including the preliminary purchase price allocation was as follows. (In millions, except share data) Acquired from County Fair Value Adjustments Estimated Fair Value Assets Acquired: Cash and cash equivalents $ 20 $ — $ 20 Investment securities 301 (1) 300 Loans 1,015 (1) 1,014 ACL-Loans (11) 8 (3) Premises and equipment 21 (4) 17 BOLI 33 — 33 Core deposit intangible — 7 7 Loan servicing rights 20 — 20 Other assets 6 (2) 4 Total assets $ 1,405 $ 7 $ 1,412 Liabilities Assumed: Deposits $ 1,027 $ 3 $ 1,030 Borrowings 218 1 219 Other liabilities 8 — 8 Total liabilities $ 1,253 $ 4 $ 1,257 Net assets acquired $ 155 Purchase Price: Nicolet common stock issued (in shares) 2,366,243 Value of Nicolet common stock consideration $ 176 Cash consideration paid 48 Total purchase price $ 224 Write-off prior investment in County (1) Preliminary goodwill $ 70 (In thousands) December 3, 2021 Purchase price of PCD loans at acquisition $ 64,948 Allowance for credit losses on PCD loans at acquisition 3,262 Par value of PCD acquired loans at acquisition $ 68,210 A summary of the assets acquired and liabilities assumed in the Mackinac transaction, as of the acquisition date, including the preliminary purchase price allocation was as follows. (In millions, except share data) Acquired from Mackinac Fair Value Adjustments Estimated Fair Value Assets Acquired: Cash and cash equivalents $ 448 $ — $ 448 Investment securities 104 — 104 Loans 930 10 940 ACL-Loans (6) 4 (2) Premises and equipment 24 (3) 21 BOLI 16 — 16 Goodwill 20 (20) — Other intangibles 4 3 7 Other assets 25 (3) 22 Total assets $ 1,565 $ (9) $ 1,556 Liabilities Assumed: Deposits $ 1,365 $ 1 $ 1,366 Borrowings 28 1 29 Other liabilities 13 1 14 Total liabilities $ 1,406 $ 3 $ 1,409 Net assets acquired $ 147 Purchase Price: Nicolet common stock issued (in shares) 2,337,230 Value of Nicolet common stock consideration $ 180 Cash consideration paid 49 Total purchase price $ 229 Write-off prior investment in Mackinac (2) Preliminary goodwill $ 84 (In thousands) September 3, 2021 Purchase price of PCD loans at acquisition $ 10,605 Allowance for credit losses on PCD loans at acquisition 1,896 Par value of PCD acquired loans at acquisition $ 12,501 |
Schedule of unaudited pro forma information | The following unaudited pro forma information is presented for illustrative purposes only, and gives effect to the acquisitions of County and Mackinac as if the acquisitions had occurred on January 1, 2019, the beginning of the earliest period presented. The pro forma information should not be relied upon as being indicative of the historical results of operations the companies would have had if the acquisitions had occurred before such periods or the future results of operations that the companies will experience as a result of the mergers. The pro forma information, although helpful in illustrating the financial characteristics of the combined company under one set of assumptions, does not reflect the benefits of expected cost savings, opportunities to earn additional revenue, the impact of restructuring and merger-related expenses, or other factors that may result as a consequence of the mergers and, accordingly, does not attempt to predict or suggest future results. Years Ended (In thousands, except per share data) December 31, 2021 December 31, 2020 December 31, 2019 Total revenue, net of interest expense $ 320,307 $ 308,325 $ 283,930 Net income $ 87,860 $ 77,641 $ 74,087 Diluted earnings per common share $ 5.91 $ 5.21 $ 5.13 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized costs and fair values of securities AFS | The amortized cost and fair value of securities available for sale and held to maturity are summarized as follows. December 31, 2021 (in thousands) Amortized Gross Unrealized Gains Gross Unrealized Losses Fair Fair Value as % of Total Securities AFS: U.S. government agency securities $ 192,506 $ 6 $ 1,235 $ 191,277 21 % State, county and municipals 311,717 3,222 2,202 312,737 34 % Mortgage-backed securities 270,017 3,090 1,845 271,262 29 % Corporate debt securities 143,172 3,459 246 146,385 16 % $ 917,412 $ 9,777 $ 5,528 $ 921,661 100 % Securities HTM: U.S. government agency securities $ 508,810 $ — $ 2,740 $ 506,070 78 % State, county and municipals 42,876 10 173 42,713 7 % Mortgage-backed securities 100,117 89 595 99,611 15 % Corporate debt securities — — — — — % $ 651,803 $ 99 $ 3,508 $ 648,394 100 % December 31, 2020 (in thousands) Amortized Gross Unrealized Gains Gross Unrealized Losses Fair Fair Value as % of Total Securities AFS: U.S. government agency securities $ 63,162 $ 289 $ — $ 63,451 12 % State, county and municipals 226,493 5,386 11 231,868 43 % Mortgage-backed securities 156,148 6,425 78 162,495 30 % Corporate debt securities 76,073 5,450 — 81,523 15 % $ 521,876 $ 17,550 $ 89 $ 539,337 100 % |
Schedule of amortized costs and fair values of securities HTM | The amortized cost and fair value of securities available for sale and held to maturity are summarized as follows. December 31, 2021 (in thousands) Amortized Gross Unrealized Gains Gross Unrealized Losses Fair Fair Value as % of Total Securities AFS: U.S. government agency securities $ 192,506 $ 6 $ 1,235 $ 191,277 21 % State, county and municipals 311,717 3,222 2,202 312,737 34 % Mortgage-backed securities 270,017 3,090 1,845 271,262 29 % Corporate debt securities 143,172 3,459 246 146,385 16 % $ 917,412 $ 9,777 $ 5,528 $ 921,661 100 % Securities HTM: U.S. government agency securities $ 508,810 $ — $ 2,740 $ 506,070 78 % State, county and municipals 42,876 10 173 42,713 7 % Mortgage-backed securities 100,117 89 595 99,611 15 % Corporate debt securities — — — — — % $ 651,803 $ 99 $ 3,508 $ 648,394 100 % December 31, 2020 (in thousands) Amortized Gross Unrealized Gains Gross Unrealized Losses Fair Fair Value as % of Total Securities AFS: U.S. government agency securities $ 63,162 $ 289 $ — $ 63,451 12 % State, county and municipals 226,493 5,386 11 231,868 43 % Mortgage-backed securities 156,148 6,425 78 162,495 30 % Corporate debt securities 76,073 5,450 — 81,523 15 % $ 521,876 $ 17,550 $ 89 $ 539,337 100 % |
Schedule of gross unrealized losses on securities AFS | The following tables present gross unrealized losses and the related estimated fair value of investment securities for which an allowance for credit losses has not been recorded, aggregated by investment category and the length of time the individual securities have been in a continuous unrealized loss position. December 31, 2021 Less than 12 months 12 months or more Total ($ in thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Number of Securities Securities AFS: U.S. government agency securities $ 190,432 $ 1,235 $ — $ — $ 190,432 $ 1,235 11 State, county and municipals 103,950 2,119 1,777 83 105,727 2,202 132 Mortgage-backed securities 137,561 1,616 6,068 229 143,629 1,845 159 Corporate debt securities 23,267 246 — — 23,267 246 13 $ 455,210 $ 5,216 $ 7,845 $ 312 $ 463,055 $ 5,528 315 Securities HTM: U.S. government agency securities $ 505,938 $ 2,740 $ — $ — $ 505,938 $ 2,740 9 State, county and municipals 30,898 173 — — 30,898 173 46 Mortgage-backed securities 69,333 595 — — 69,333 595 72 $ 606,169 $ 3,508 $ — $ — $ 606,169 $ 3,508 127 December 31, 2020 Less than 12 months 12 months or more Total ($ in thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Number of Securities Securities AFS: State, county and municipals $ 5,181 $ 11 $ — $ — $ 5,181 $ 11 9 Mortgage-backed securities 10,612 71 492 7 11,104 78 22 $ 15,793 $ 82 $ 492 $ 7 $ 16,285 $ 89 31 |
Schedule of amortized cost and fair value classified by contractual maturities | The amortized cost and fair value of investment securities by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties; as this is particularly inherent in mortgage-backed securities, these securities are not included in the maturity categories below. See Note 18 for additional information on the Company’s fair value measurements. As of December 31, 2021 Securities AFS Securities HTM (in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in less than one year $ 30,676 $ 30,916 $ 7,396 $ 7,394 Due in one year through five years 333,207 335,452 501,002 498,252 Due after five years through ten years 200,780 200,089 34,128 33,993 Due after ten years 82,732 83,942 9,160 9,144 647,395 650,399 551,686 548,783 Mortgage-backed securities 270,017 271,262 100,117 99,611 Total $ 917,412 $ 921,661 $ 651,803 $ 648,394 |
Schedule of proceeds and realized gains / losses from sales of securities AFS | Proceeds and realized gains / losses from the sale of securities AFS were as follows. Years Ended December 31, (in thousands) 2021 2020 2019 Gross gains $ 5 $ 395 $ 152 Gross losses (288) — (174) Gains (losses) on sales of securities AFS, net $ (283) $ 395 $ (22) Proceeds from sales of securities AFS $ 42,973 $ 19,045 $ 23,405 |
LOANS, ALLOWANCE FOR CREDIT LOS
LOANS, ALLOWANCE FOR CREDIT LOSSES - LOANS, AND CREDIT QUALITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Schedule of loan composition by portfolio segment | The loan composition was as follows. December 31, 2021 December 31, 2020 (in thousands) Amount % of Total Amount % of Total Commercial & industrial $ 1,017,725 22 % $ 750,718 27 % Paycheck Protection Program (“PPP”) loans 24,531 1 186,016 7 Owner-occupied commercial real estate (“CRE”) 787,189 17 521,300 19 Agricultural 794,728 17 109,629 4 CRE investment 818,061 18 460,721 16 Construction & land development 213,035 5 131,283 5 Residential construction 70,353 1 41,707 1 Residential first mortgage 713,983 15 444,155 16 Residential junior mortgage 131,424 3 111,877 4 Retail & other 50,807 1 31,695 1 Loans 4,621,836 100 % 2,789,101 100 % Less ACL-Loans 49,672 32,173 Loans, net $ 4,572,164 $ 2,756,928 ACL-Loans to loans 1.07 % 1.15 % |
Schedule of changes in the allowance for credit losses - loans by portfolio segment | A roll forward of the allowance for credit losses - loans was as follows. Years Ended December 31, (in thousands) 2021 2020 2019 Beginning balance $ 32,173 $ 13,972 $ 13,153 Adoption of CECL — 8,488 — Initial PCD ACL — 797 — Total impact for adoption of CECL — 9,285 — ACL on PCD loans acquired 5,159 — — Provision for credit losses 12,500 10,300 1,200 Charge-offs (513) (1,689) (927) Recoveries 353 305 546 Net (charge-offs) recoveries (160) (1,384) (381) Ending balance $ 49,672 $ 32,173 $ 13,972 The following table presents the balance and activity in the ACL-Loans by portfolio segment. Year Ended December 31, 2021 (in thousands) Commercial Owner- Agricultural CRE Construction & land Residential Residential Residential Retail Total ACL-Loans * Beginning balance $ 11,644 $ 5,872 $ 1,395 $ 5,441 $ 984 $ 421 $ 4,773 $ 1,086 $ 557 $ 32,173 ACL on PCD loans 723 1,045 2,585 415 103 — 272 13 3 5,159 Provision 196 305 5,615 2,608 725 479 1,892 237 443 12,500 Charge-offs (242) — (48) (4) — — (113) — (106) (513) Recoveries 292 — — 2 — — 20 4 35 353 Net (charge-offs) recoveries 50 — (48) (2) — — (93) 4 (71) (160) Ending balance $ 12,613 $ 7,222 $ 9,547 $ 8,462 $ 1,812 $ 900 $ 6,844 $ 1,340 $ 932 $ 49,672 As % of ACL-Loans 25 % 14 % 19 % 17 % 4 % 2 % 14 % 3 % 2 % 100 % * The PPP loans are fully guaranteed by the SBA; thus, no ACL-Loans has been allocated to these loans. For comparison purposes, the following table presents the balance and activity in the ACL-Loans by portfolio segment for the prior year-end period. Year Ended December 31, 2020 (in thousands) Commercial Owner- Agricultural CRE Construction & land Residential Residential Residential Retail Total ACL-Loans * Beginning balance $ 5,471 $ 3,010 $ 579 $ 1,600 $ 414 $ 368 $ 1,669 $ 517 $ 344 $ 13,972 Adoption of CECL 2,962 1,249 361 1,970 51 124 1,286 351 134 8,488 Initial PCD ACL 797 — — — — — — — — 797 Provision 3,106 2,062 455 2,061 519 (71) 1,809 151 208 10,300 Charge-offs (812) (530) — (190) — — (2) — (155) (1,689) Recoveries 120 81 — — — — 11 67 26 305 Net (charge-offs) recoveries (692) (449) — (190) — — 9 67 (129) (1,384) Ending balance $ 11,644 $ 5,872 $ 1,395 $ 5,441 $ 984 $ 421 $ 4,773 $ 1,086 $ 557 $ 32,173 As % of ACL-Loans 36 % 18 % 4 % 17 % 3 % 1 % 15 % 4 % 2 % 100 % |
Schedule of provision of credit losses | The following table presents the components of the provision for credit losses. Years Ended December 31, (in thousands) 2021 2020 2019 Provision for credit losses on: Loans $ 12,500 $ 10,300 $ 1,200 Unfunded commitments 2,400 — — Investment securities — — — Total provision for credit losses $ 14,900 $ 10,300 $ 1,200 |
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. December 31, 2021 Collateral Type (in thousands) Real Estate Other Business Assets Total Without an Allowance With an Allowance Allowance Allocation Commercial & industrial $ — $ 2,296 $ 2,296 $ 1,842 $ 454 $ 258 PPP loans — — — — — — Owner-occupied CRE 3,537 — 3,537 1,315 2,222 552 Agricultural 19,637 8,518 28,155 25,310 2,845 841 CRE investment 3,000 — 3,000 1,684 1,316 407 Construction & land development 1,038 — 1,038 655 383 211 Residential construction — — — — — — Residential first mortgage 473 — 473 473 — — Residential junior mortgage — — — — — — Retail & other — — — — — — Total loans $ 27,685 $ 10,814 $ 38,499 $ 31,279 $ 7,220 $ 2,269 December 31, 2020 Collateral Type (in thousands) Real Estate Other Business Assets Total Without an Allowance With an Allowance Allowance Allocation Commercial & industrial $ — $ 2,195 $ 2,195 $ 501 $ 1,694 $ 1,241 PPP loans — — — — — — Owner-occupied CRE 3,519 — 3,519 3,519 — — Agricultural 584 797 1,381 1,378 3 3 CRE investment 1,474 — 1,474 1,474 — — Construction & land development 308 — 308 308 — — Residential construction — — — — — — Residential first mortgage — — — — — — Residential junior mortgage — — — — — — Retail & other — — — — — — Total loans $ 5,885 $ 2,992 $ 8,877 $ 7,180 $ 1,697 $ 1,244 |
Schedule of past due loans by portfolio segment | The following tables present past due loans by portfolio segment. December 31, 2021 (in thousands) 30-89 Days Past 90 Days & Over Current Total Commercial & industrial $ 94 $ 1,908 $ 1,015,723 $ 1,017,725 PPP loans — — 24,531 24,531 Owner-occupied CRE — 4,220 782,969 787,189 Agricultural 108 28,367 766,253 794,728 CRE investment 114 4,119 813,828 818,061 Construction & land development — 1,071 211,964 213,035 Residential construction 246 — 70,107 70,353 Residential first mortgage 2,592 4,132 707,259 713,983 Residential junior mortgage 23 243 131,158 131,424 Retail & other 115 94 50,598 50,807 Total loans $ 3,292 $ 44,154 $ 4,574,390 $ 4,621,836 Percent of total loans 0.1 % 0.9 % 99.0 % 100.0 % December 31, 2020 (in thousands) 30-89 Days Past 90 Days & Over Current Total Commercial & industrial $ — $ 2,646 $ 748,072 $ 750,718 PPP loans — — 186,016 186,016 Owner-occupied CRE — 1,869 519,431 521,300 Agricultural 7 1,830 107,792 109,629 CRE investment — 1,488 459,233 460,721 Construction & land development — 327 130,956 131,283 Residential construction — — 41,707 41,707 Residential first mortgage 613 823 442,719 444,155 Residential junior mortgage 43 384 111,450 111,877 Retail & other 102 88 31,505 31,695 Total loans $ 765 $ 9,455 $ 2,778,881 $ 2,789,101 Percent of total loans — % 0.4 % 99.6 % 100.0 % |
Schedule of nonaccrual loans by portfolio segment | The following table presents nonaccrual loans by portfolio segment. The nonaccrual loans without a related allowance for credit losses have been reflected in the collateral dependent loans table above. Total Nonaccrual Loans (in thousands) December 31, 2021 % to Total December 31, 2020 % to Total Commercial & industrial $ 1,908 4 % $ 2,646 28 % PPP loans — — — — Owner-occupied CRE 4,220 10 1,869 20 Agricultural 28,367 64 1,830 19 CRE investment 4,119 9 1,488 16 Construction & land development 1,071 3 327 3 Residential construction — — — — Residential first mortgage 4,132 9 823 9 Residential junior mortgage 243 1 384 4 Retail & other 94 — 88 1 Nonaccrual loans $ 44,154 100 % $ 9,455 100 % Percent of total loans 0.9 % 0.4 % |
Schedule of total loans by risk categories and year of origination | The following tables present total loans by risk categories and year of origination. Loans acquired from Mackinac and County have been included in the December 31, 2021 table based upon the actual origination date. December 31, 2021 Amortized Cost Basis by Origination Year (in thousands) 2021 2020 2019 2018 2017 Prior Revolving Revolving to Term TOTAL Commercial & industrial (a) Grades 1-4 $ 282,369 $ 146,131 $ 99,702 $ 69,478 $ 50,557 $ 71,247 $ 288,115 $ — $ 1,007,599 Grade 5 1,685 1,905 4,369 5,809 4,860 2,097 8,408 — 29,133 Grade 6 598 54 16 687 67 91 391 — 1,904 Grade 7 — 440 692 337 976 743 432 — 3,620 Total $ 284,652 $ 148,530 $ 104,779 $ 76,311 $ 56,460 $ 74,178 $ 297,346 $ — $ 1,042,256 Owner-occupied CRE Grades 1-4 $ 154,578 $ 94,300 $ 105,226 $ 92,128 $ 75,583 $ 202,816 $ 6,945 $ — $ 731,576 Grade 5 7,753 3,019 6,529 2,543 2,515 13,905 656 — 36,920 Grade 6 — — 1,642 — 20 805 — — 2,467 Grade 7 — 3,124 1,914 — 3,526 6,672 990 — 16,226 Total $ 162,331 $ 100,443 $ 115,311 $ 94,671 $ 81,644 $ 224,198 $ 8,591 $ — $ 787,189 Agricultural Grades 1-4 $ 128,404 $ 87,844 $ 28,416 $ 22,887 $ 36,298 $ 86,104 $ 235,743 $ — $ 625,696 Grade 5 14,796 4,183 2,391 915 3,912 48,373 26,778 — 101,348 Grade 6 38 38 36 — 86 1,049 85 — 1,332 Grade 7 3,284 3,971 3,490 4,201 7,215 31,672 12,519 — 66,352 Total $ 146,522 $ 96,036 $ 34,333 $ 28,003 $ 47,511 $ 167,198 $ 275,125 $ — $ 794,728 CRE investment Grades 1-4 $ 192,274 $ 139,127 $ 136,306 $ 56,148 $ 65,026 $ 162,991 $ 11,289 $ — $ 763,161 Grade 5 11,081 3,001 6,497 3,945 6,726 17,527 — — 48,777 Grade 6 — — — — — — — — — Grade 7 — — 456 141 1,352 3,943 231 — 6,123 Total $ 203,355 $ 142,128 $ 143,259 $ 60,234 $ 73,104 $ 184,461 $ 11,520 $ — $ 818,061 Construction & land development Grades 1-4 $ 81,891 $ 72,415 $ 12,547 $ 19,511 $ 1,184 $ 11,274 $ 10,943 $ — $ 209,765 Grade 5 640 — 521 919 — 119 — — 2,199 Grade 6 — — — — — — — — — Grade 7 — — — — 17 1,054 — — 1,071 Total $ 82,531 $ 72,415 $ 13,068 $ 20,430 $ 1,201 $ 12,447 $ 10,943 $ — $ 213,035 Residential construction Grades 1-4 $ 58,352 $ 9,998 $ 155 $ 344 $ 1,072 $ 380 $ — $ — $ 70,301 Grade 5 — — 52 — — — — — 52 Grade 6 — — — — — — — — — Grade 7 — — — — — — — — — Total $ 58,352 $ 9,998 $ 207 $ 344 $ 1,072 $ 380 $ — $ — $ 70,353 Residential first mortgage Grades 1-4 $ 256,082 $ 152,932 $ 168,705 $ 22,568 $ 20,147 $ 82,479 $ 1,840 $ 4 $ 704,757 Grade 5 713 529 3,094 — — 1,508 — — 5,844 Grade 6 — — — — — — — — — Grade 7 — — 560 225 73 2,524 — — 3,382 Total $ 256,795 $ 153,461 $ 172,359 $ 22,793 $ 20,220 $ 86,511 $ 1,840 $ 4 $ 713,983 Residential junior mortgage Grades 1-4 $ 3,194 $ 3,139 $ 3,021 $ 1,501 $ 512 $ 1,969 $ 115,817 $ 1,426 $ 130,579 Grade 5 — — 29 — — — 439 — 468 Grade 6 — — — — — — — — — Grade 7 — — 172 — 23 44 138 — 377 Total $ 3,194 $ 3,139 $ 3,222 $ 1,501 $ 535 $ 2,013 $ 116,394 $ 1,426 $ 131,424 Retail & other Grades 1-4 $ 13,676 $ 6,886 $ 5,826 $ 2,053 $ 1,882 $ 20,102 $ 275 $ — $ 50,700 Grade 5 — — — — — — — — — Grade 6 — — — — — — — — — Grade 7 — 24 2 19 — 62 — — 107 Total $ 13,676 $ 6,910 $ 5,828 $ 2,072 $ 1,882 $ 20,164 $ 275 $ — $ 50,807 Total loans $ 1,211,408 $ 733,060 $ 592,366 $ 306,359 $ 283,629 $ 771,550 $ 722,034 $ 1,430 $ 4,621,836 (a) For purposes of this table at December 31, 2021, the $25 million net carrying value of PPP loans include $24 million originated in 2021 and the remainder originated in 2020, have a Pass risk grade (Grades 1-4) and have been included with the Commercial & industrial loan category. December 31, 2020 Amortized Cost Basis by Origination Year (in thousands) 2020 2019 2018 2017 2016 Prior Revolving Revolving to Term TOTAL Commercial & industrial (a) Grades 1-4 $ 348,274 $ 121,989 $ 98,920 $ 72,027 $ 21,613 $ 39,454 $ 183,858 $ — $ 886,135 Grade 5 1,416 2,239 4,486 527 1,638 4,151 18,994 — 33,451 Grade 6 69 19 735 5,315 29 32 1,923 — 8,122 Grade 7 334 1,126 1,389 663 122 3,103 2,289 — 9,026 Total $ 350,093 $ 125,373 $ 105,530 $ 78,532 $ 23,402 $ 46,740 $ 207,064 $ — $ 936,734 Owner-occupied CRE Grades 1-4 $ 90,702 $ 74,029 $ 78,013 $ 52,911 $ 45,042 $ 150,624 $ 870 $ — $ 492,191 Grade 5 42 623 1,349 7,541 1,102 5,842 — — 16,499 Grade 6 — — — 1,710 — 706 — — 2,416 Grade 7 2,987 675 176 835 — 5,521 — — 10,194 Total $ 93,731 $ 75,327 $ 79,538 $ 62,997 $ 46,144 $ 162,693 $ 870 $ — $ 521,300 Agricultural Grades 1-4 $ 13,719 $ 5,652 $ 7,580 $ 9,745 $ 2,613 $ 32,702 $ 21,513 $ — $ 93,524 Grade 5 1,034 — 701 169 644 6,131 356 — 9,035 Grade 6 — — — 329 390 — — — 719 Grade 7 — — 26 110 1,111 5,042 62 — 6,351 Total $ 14,753 $ 5,652 $ 8,307 $ 10,353 $ 4,758 $ 43,875 $ 21,931 $ — $ 109,629 CRE investment Grades 1-4 $ 82,518 $ 78,841 $ 40,881 $ 69,643 $ 31,541 $ 137,048 $ 5,255 $ — $ 445,727 Grade 5 — — 47 1,284 1,828 9,073 — — 12,232 Grade 6 — — — 796 — — — — 796 Grade 7 — — — — — 1,966 — — 1,966 Total $ 82,518 $ 78,841 $ 40,928 $ 71,723 $ 33,369 $ 148,087 $ 5,255 $ — $ 460,721 Construction & land development Grades 1-4 $ 67,578 $ 30,733 $ 15,209 $ 2,204 $ 2,083 $ 7,266 $ 3,675 $ — $ 128,748 Grade 5 — 373 660 545 — 23 455 — 2,056 Grade 6 — — — — — — — — — Grade 7 — — — — — 479 — — 479 Total $ 67,578 $ 31,106 $ 15,869 $ 2,749 $ 2,083 $ 7,768 $ 4,130 $ — $ 131,283 Residential construction Grades 1-4 $ 31,687 $ 9,185 $ 395 $ 121 $ — $ 264 $ — $ — $ 41,652 Grade 5 — — — 55 — — — — 55 Grade 6 — — — — — — — — — Grade 7 — — — — — — — — — Total $ 31,687 $ 9,185 $ 395 $ 176 $ — $ 264 $ — $ — $ 41,707 Residential first mortgage Grades 1-4 $ 146,744 $ 64,013 $ 40,388 $ 41,245 $ 41,274 $ 103,094 $ 287 $ 5 $ 437,050 Grade 5 — 925 2,245 256 364 1,714 — — 5,504 Grade 6 — — — — — — — — — Grade 7 — 437 197 16 9 942 — — 1,601 Total $ 146,744 $ 65,375 $ 42,830 $ 41,517 $ 41,647 $ 105,750 $ 287 $ 5 $ 444,155 Residential junior mortgage Grades 1-4 $ 4,936 $ 4,338 $ 3,663 $ 1,060 $ 869 $ 3,131 $ 91,816 $ 1,648 $ 111,461 Grade 5 — — — — — 32 — — 32 Grade 6 — — — — — — — — — Grade 7 — — — 27 — 232 125 — 384 Total $ 4,936 $ 4,338 $ 3,663 $ 1,087 $ 869 $ 3,395 $ 91,941 $ 1,648 $ 111,877 Retail & other Grades 1-4 $ 8,083 $ 5,213 $ 1,942 $ 1,676 $ 752 $ 1,339 $ 12,602 $ — $ 31,607 Grade 5 — — — — — — — — — Grade 6 — — — — — — — — — Grade 7 16 — 22 — — 50 — — 88 Total $ 8,099 $ 5,213 $ 1,964 $ 1,676 $ 752 $ 1,389 $ 12,602 $ — $ 31,695 Total loans $ 800,139 $ 400,410 $ 299,024 $ 270,810 $ 153,024 $ 519,961 $ 344,080 $ 1,653 $ 2,789,101 (a) For purposes of this table, the $186 million net carrying value of PPP loans were originated in 2020, have a Pass risk grade (Grades 1-4) and have been included with the Commercial & industrial loan category. The following tables present total loans by risk categories. December 31, 2021 (in thousands) Grades 1-4 Grade 5 Grade 6 Grade 7 Total Commercial & industrial $ 983,068 $ 29,133 $ 1,904 $ 3,620 $ 1,017,725 PPP loans 24,531 — — — 24,531 Owner-occupied CRE 731,576 36,920 2,467 16,226 787,189 Agricultural 625,696 101,348 1,332 66,352 794,728 CRE investment 763,161 48,777 — 6,123 818,061 Construction & land development 209,765 2,199 — 1,071 213,035 Residential construction 70,301 52 — — 70,353 Residential first mortgage 704,757 5,844 — 3,382 713,983 Residential junior mortgage 130,579 468 — 377 131,424 Retail & other 50,700 — — 107 50,807 Total loans $ 4,294,134 $ 224,741 $ 5,703 $ 97,258 $ 4,621,836 Percent of total loans 92.9 % 4.9 % 0.1 % 2.1 % 100.0 % December 31, 2020 (in thousands) Grades 1-4 Grade 5 Grade 6 Grade 7 Total Commercial & industrial $ 700,119 $ 33,451 $ 8,122 $ 9,026 $ 750,718 PPP loans 186,016 — — — 186,016 Owner-occupied CRE 492,191 16,499 2,416 10,194 521,300 Agricultural 93,524 9,035 719 6,351 109,629 CRE investment 445,727 12,232 796 1,966 460,721 Construction & land development 128,748 2,056 — 479 131,283 Residential construction 41,652 55 — — 41,707 Residential first mortgage 437,050 5,504 — 1,601 444,155 Residential junior mortgage 111,461 32 — 384 111,877 Retail & other 31,607 — — 88 31,695 Total loans $ 2,668,095 $ 78,864 $ 12,053 $ 30,089 $ 2,789,101 Percent of total loans 95.7 % 2.8 % 0.4 % 1.1 % 100.0 % |
Loan composition of nonaccrual and performing TDRs | The following table presents the loan composition of nonaccrual and performing TDRs. December 31, 2021 December 31, 2020 (in thousands) Performing Nonaccrual Total Performing Nonaccrual Total Commercial & industrial $ — $ 197 $ 197 $ — $ — $ — Owner-occupied CRE 3,466 2,888 6,354 2,120 1,515 3,635 Agricultural — 16,835 16,835 — 1,283 1,283 CRE investment 918 — 918 — 14 14 Construction & land development — 308 308 — 308 308 Residential first mortgage 913 15 928 — 233 233 Residential junior mortgage 146 — 146 — — — Total $ 5,443 $ 20,243 $ 25,686 $ 2,120 $ 3,353 $ 5,473 The following table presents the number of loans modified in a TDR, pre-modification loan balance, and post-modification loan balance by loan composition. December 31, 2021 December 31, 2020 ($ in thousands) Number of Loans Pre-Modification Balance Current Balance Number of Loans Pre-Modification Balance Current Balance Commercial & industrial 2 $ 200 $ 197 — $ — $ — Owner-occupied CRE 6 6,913 6,354 4 4,075 3,635 Agricultural 31 17,228 16,835 4 1,461 1,283 CRE investment 1 919 918 1 180 14 Construction & land development 1 533 308 1 533 308 Residential first mortgage 2 931 928 1 233 233 Residential junior mortgage 1 166 146 — — — Total 44 $ 26,890 $ 25,686 11 $ 6,482 $ 5,473 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and equipment, less accumulated depreciation and amortization | Premises and equipment, less accumulated depreciation and amortization, is summarized as follows. (in thousands) December 31, 2021 December 31, 2020 Land $ 10,806 $ 6,344 Land improvements 3,896 3,950 Building and improvements 79,754 54,989 Leasehold improvements 6,514 4,381 Furniture and equipment 30,741 22,701 131,711 92,365 Less accumulated depreciation and amortization 37,145 32,421 Premises and equipment, net $ 94,566 $ 59,944 |
Schedule of operating lease | A summary of net lease cost and selected other information related to operating leases was as follows. Years Ended ($ in thousands) December 31, 2021 December 31, 2020 December 31, 2019 Net lease cost: Operating lease cost $ 1,018 $ 834 $ 970 Variable lease cost 234 169 233 Net lease cost $ 1,252 $ 1,003 $ 1,203 Selected other operating lease information: Weighted average remaining lease term (years) 6.3 5.1 4.3 Weighted average discount rate 1.5 % 2.0 % 2.5 % |
Schedule of maturity of remaining lease liabilities | The following table summarizes the maturity of remaining lease liabilities. Years Ending December 31, (in thousands) 2022 $ 2,033 2023 1,595 2024 1,350 2025 1,012 2026 1,024 Thereafter 2,442 Total future minimum lease payments 9,456 Less: amount representing interest (143) Present value of net future minimum lease payments $ 9,313 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLES AND SERVICING RIGHTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill and other intangibles | A summary of goodwill and other intangibles was as follows. (in thousands) December 31, 2021 December 31, 2020 Goodwill $ 317,189 $ 163,151 Core deposit intangibles 19,445 8,837 Customer list intangibles 2,858 3,365 Other intangibles 22,303 12,202 Goodwill and other intangibles, net $ 339,492 $ 175,353 |
Schedule of goodwill | (in thousands) December 31, 2021 December 31, 2020 Goodwill: Goodwill at beginning of year $ 163,151 $ 151,198 Acquisitions 154,038 11,953 Impairment — — Goodwill at end of year $ 317,189 $ 163,151 |
Schedule of other intangibles | (in thousands) December 31, 2021 December 31, 2020 Core deposit intangibles: Gross carrying amount * $ 41,360 $ 31,715 Accumulated amortization * (21,915) (22,878) Net book value $ 19,445 $ 8,837 Additions during the period $ 13,595 $ 1,000 Amortization during the period $ 2,987 $ 3,060 Customer list intangibles: Gross carrying amount $ 5,523 $ 5,523 Accumulated amortization (2,665) (2,158) Net book value $ 2,858 $ 3,365 Amortization during the period $ 507 $ 507 * Core deposit intangibles of $4 million was fully amortized during 2020 and has been removed from both the gross carrying amount and accumulated amortization in 2021. |
Schedule of mortgage servicing rights | A summary of the changes in the MSR asset was as follows. (in thousands) December 31, 2021 December 31, 2020 MSR asset: MSR asset at beginning of year $ 10,230 $ 5,919 Capitalized MSR 4,329 5,256 MSR asset acquired 1,322 529 Amortization during the period (2,245) (1,474) MSR asset at end of year $ 13,636 $ 10,230 Valuation allowance at beginning of year $ (1,000) $ — Additions (500) (1,000) Reversals 300 — Valuation allowance at end of year $ (1,200) $ (1,000) MSR asset, net $ 12,436 $ 9,230 Fair value of MSR asset at end of period $ 15,599 $ 9,276 Residential mortgage loans serviced for others $ 1,583,577 $ 1,250,206 Net book value of MSR asset to loans serviced for others 0.79 % 0.74 % |
Schedule of estimated future amortization expense for amortizing intangible assets and the MSR asset | The following table shows the estimated future amortization expense for amortizing intangible assets and the servicing assets. The projections are based on existing asset balances, the current interest rate environment and prepayment speeds as of December 31, 2021. The actual amortization expense the Company recognizes in any given period may be significantly different depending upon acquisition or sale activities, changes in interest rates, prepayment speeds, market conditions, regulatory requirements and events or circumstances that indicate the carrying amount of an asset may not be recoverable. (in thousands) Core deposit Customer list MSR asset LSR asset Years Ending December 31, 2022 $ 4,817 $ 507 $ 2,388 $ 9,017 2023 3,910 483 2,502 6,345 2024 3,135 449 2,395 3,673 2025 2,385 449 1,568 1,020 2026 1,659 249 1,204 — Thereafter 3,539 721 3,579 — Total $ 19,445 $ 2,858 $ 13,636 $ 20,055 |
OTHER REAL ESTATE OWNED (Tables
OTHER REAL ESTATE OWNED (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Real Estate [Abstract] | |
Schedule of summary of OREO | A summary of OREO, which is included in other assets in the consolidated balance sheets, for the periods indicated was as follows. Years Ended December 31, (in thousands) 2021 2020 Balance at beginning of period $ 3,608 $ 1,000 Transfer in loans at net realizable value 334 — Transfer in former bank branch properties at net realizable value 7,843 3,648 Sales proceeds (2,743) (157) Net gain from sales 597 157 Write-downs (28) (1,040) Acquired balance, net 2,344 — Balance at end of period $ 11,955 $ 3,608 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deposits [Abstract] | |
Schedule of maturities of time deposits | At December 31, 2021, the scheduled maturities of time deposits were as follows. Years Ending December 31, (in thousands) 2022 $ 534,767 2023 202,608 2024 71,347 2025 31,784 2026 10,492 Thereafter 1,192 Total time deposits $ 852,190 |
SHORT AND LONG-TERM BORROWINGS
SHORT AND LONG-TERM BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of long-term borrowings | The components of long-term borrowings (borrowing with an original contractual maturity greater than one year) were as follows. (in thousands) December 31, 2021 December 31, 2020 FHLB advances $ 25,000 $ 29,000 Junior subordinated debentures 38,885 24,869 Subordinated notes 153,030 — Total long-term borrowings $ 216,915 $ 53,869 |
Schedule of maturity of FHLB advances | The following table shows the maturity schedule of the FHLB advances as of December 31, 2021. Maturing in: (in thousands) 2022 $ 10,000 2023 — 2024 — 2025 5,000 2026 — Thereafter 10,000 $ 25,000 |
Schedule of junior subordinated debentures | The following table shows the breakdown of junior subordinated debentures and subordinated notes. As of 12/31/2021 As of 12/31/2020 (in thousands) Maturity Interest Par Unamortized Premium /(Discount) / Debt Issue Costs (1) Carrying Interest Carrying Junior Subordinated Debentures: Mid-Wisconsin Statutory Trust I (2) 12/15/2035 1.63 % 10,310 (2,773) 7,537 1.65 % 7,338 Baylake Capital Trust II (3) 9/30/2036 1.57 % 16,598 (3,411) 13,187 1.59 % 12,951 First Menasha Statutory Trust (4) 3/17/2034 3.01 % 5,155 (531) 4,624 3.02 % 4,580 County Bancorp Statutory Trust II (5) 9/15/2035 1.73 % 6,186 (1,125) 5,061 — % — County Bancorp Statutory Trust III (6) 6/15/2036 1.89 % 6,186 (1,065) 5,121 — % — Fox River Valley Capital Trust (7) 5/30/2033 6.40 % 3,610 (255) 3,355 — % — Total $ 48,045 $ (9,160) $ 38,885 $ 24,869 Subordinated Notes: Subordinated Notes due 2031 7/15/2031 3.13 % $ 100,000 $ (943) $ 99,057 — % $ — County Subordinated Notes due 2028 6/1/2028 5.88 % 30,000 402 30,402 — % — County Subordinated Notes due 2030 6/30/2030 7.00 % 22,400 1,171 23,571 — % — Total $ 152,400 $ 630 $ 153,030 $ — (1) Represents the remaining unamortized premium or discount on debt issuances assumed in acquisitions, and represents the unamortized debt issue costs for the debt issued directly by Nicolet. (2) The debentures, assumed in April 2013 as the result of an acquisition, have a floating rate of three-month LIBOR plus 1.43%, adjusted quarterly. (3) The debentures, assumed in April 2016 as a result of an acquisition, have a floating rate of three-month LIBOR plus 1.35%, adjusted quarterly. (4) The debentures, assumed in April 2017 as the result of an acquisition, have a floating rate of three-month LIBOR plus 2.79%, adjusted quarterly. (5) The debentures, assumed in December 2021 as the result of an acquisition, have a floating rate of three-month LIBOR plus 1.53%, adjusted quarterly. (6) The debentures, assumed in December 2021 as the result of an acquisition, have a floating rate of three-month LIBOR plus 1.69%, adjusted quarterly. (7) The debentures, assumed in December 2021 as the result of an acquisition, have a floating rate of 5-year LIBOR plus 3.40%, which resets every five years. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of weighted average assumptions for valuing stock option grants | The weighted average assumptions used in the model for valuing stock option grants were as follows. 2021 2020 2019 Dividend yield — % — % — % Expected volatility 30 % 25 % 25 % Risk-free interest rate 1.19 % 1.35 % 1.75 % Expected average life 7 years 7 years 7 years Weighted average per share fair value of options $ 26.33 $ 20.55 $ 21.30 |
Schedule of stock option activity | A summary of the Company’s stock option activity is summarized below. Stock Options Option Shares Weighted Average Weighted Average Remaining Life (Years) Aggregate Intrinsic Value (in thousands) Outstanding – December 31, 2018 1,581,699 $ 40.77 Granted 203,000 69.69 Exercise of stock options * (337,428) 24.15 Forfeited (3,538) 27.43 Outstanding – December 31, 2019 1,443,733 $ 48.75 7.4 $ 36,428 Granted 54,500 69.44 Exercise of stock options * (60,773) 26.51 Forfeited — — Outstanding – December 31, 2020 1,437,460 $ 50.47 6.6 $ 23,840 Granted 450,000 77.99 Exercise of stock options * (53,214) 34.40 Forfeited (1,000) 48.85 Outstanding – December 31, 2021 1,833,246 $ 57.69 6.6 $ 51,426 Exercisable – December 31, 2021 1,025,846 $ 48.30 5.4 $ 38,410 |
Schedule of options outstanding | The following options were outstanding at December 31, 2021. Number of Shares Weighted Average Weighted Average Outstanding Exercisable Outstanding Exercisable Outstanding Exercisable $16.50 – $40.00 190,496 190,496 $ 31.51 $ 31.51 3.7 3.7 $40.01 – $50.00 791,750 632,950 48.86 48.86 5.3 5.3 $50.01 – $60.00 153,500 113,300 56.17 56.27 6.0 5.9 $60.01 – $70.00 20,000 6,000 63.61 62.64 8.2 7.9 $70.01 – $84.73 677,500 83,100 75.55 70.63 8.9 7.9 1,833,246 1,025,846 $ 57.69 $ 48.30 6.6 5.4 |
Schedule of restricted stock | A summary of the Company’s restricted stock activity is summarized below. Restricted Stock Restricted Shares Weighted Average Grant Outstanding – December 31, 2018 29,512 $ 39.37 Granted 12,498 67.59 Vested * (19,081) 51.77 Forfeited (408) 16.50 Outstanding – December 31, 2019 22,521 $ 44.94 Granted 19,672 60.29 Vested * (23,268) 50.90 Forfeited — — Outstanding – December 31, 2020 18,925 $ 53.57 Granted 33,153 75.83 Vested * (25,831) 64.53 Forfeited (446) 41.44 Outstanding – December 31, 2021 25,801 $ 71.42 *The terms of the restricted stock agreements permit the surrender of shares to the Company upon vesting in order to satisfy applicable tax withholding at the minimum statutory withholding rate, and accordingly 3,215 shares, 4,733 shares, and 4,688 shares were surrendered during 2021, 2020, and 2019, respectively. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of current and deferred amounts of income tax expense | The current and deferred amounts of income tax expense were as follows. Years Ended December 31, (in thousands) 2021 2020 2019 Current $ 14,138 $ 29,764 $ 15,353 Deferred 6,332 (9,288) 1,105 Income tax expense $ 20,470 $ 20,476 $ 16,458 |
Schedule of income tax reconciliation | The differences between the income tax expense recognized and the amount computed by applying the statutory federal income tax rate of 21% to the income before income tax expense, less noncontrolling interest, for the years ended as indicated are included in the following table. Years Ended December 31, (in thousands) 2021 2020 2019 Tax on pretax income, less noncontrolling interest, at statutory rates $ 17,023 $ 16,926 $ 14,931 State income taxes, net of federal effect 5,064 5,030 3,672 Tax-exempt interest income (520) (527) (609) Non-deductible interest disallowance 3 14 29 Increase in cash surrender value life insurance (570) (738) (573) Non-deductible business entertainment 119 170 189 Stock-based employee compensation (618) (839) (2,347) Non-deductible compensation 163 272 3,122 Sale of UFS — (109) (2,176) Other, net (194) 277 220 Income tax expense $ 20,470 $ 20,476 $ 16,458 |
Schedule of net deferred tax asset | The net deferred tax asset includes the following amounts of deferred tax assets and liabilities. (in thousands) December 31, 2021 December 31, 2020 Deferred tax assets: ACL-Loans $ 14,650 $ 9,328 Net operating loss carryforwards 3,800 1,692 Compensation 9,194 5,822 Purchase of noncontrolling interest — 2,112 Other 2,605 2,949 Other real estate 1,364 538 Total deferred tax assets 31,613 22,441 Deferred tax liabilities: Premises and equipment (3,860) (1,577) Prepaid expenses (1,110) (1,010) Investment securities (1,678) (451) Core deposit and other intangibles (5,278) (1,777) Purchase accounting adjustments to liabilities (1,725) (1,969) MSR and LSR assets (8,726) (2,269) Other (2,462) (282) Unrealized gain on securities AFS (1,392) (4,959) Total deferred tax liabilities (26,231) (14,294) Net deferred tax assets $ 5,382 $ 8,147 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of summary of the contract or notional amount of exposure to off-balance-sheet risk | A summary of the contract or notional amount of the Company’s exposure to off-balance sheet risk was as follows. (in thousands) December 31, 2021 December 31, 2020 Commitments to extend credit $ 1,433,881 $ 950,287 Financial standby letters of credit 13,562 8,241 Performance standby letters of credit 7,336 8,366 |
ASSETS GAINS (LOSSES), NET (Tab
ASSETS GAINS (LOSSES), NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Assets Gains (Losses), Net [Abstract] | |
Schedule of components of the net gain (losses) on assets | Components of the net gains (losses) on assets are as follows. Years Ended December 31, (in thousands) 2021 2020 2019 Gains (losses) on sales of securities AFS, net $ (283) $ 395 $ (22) Gains (losses) on equity securities, net 3,445 (987) 1,115 Gains (losses) on sales of OREO, net 597 157 (88) Write-downs of OREO (28) (1,040) (300) Write-down of other investment — (100) (100) Gains (losses) on sales of other investments, net 550 — 7,442 Gains (losses) on sales or dispositions of other assets, net (100) (230) (150) Asset gains (losses), net $ 4,181 $ (1,805) $ 7,897 |
REGULATORY CAPITAL REQUIREMEN_2
REGULATORY CAPITAL REQUIREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Capital Requirements Under Banking Regulations [Abstract] | |
Schedule of Bank's actual regulatory capital amounts and ratios | The Company’s and the Bank’s actual regulatory capital amounts and ratios are presented in the following table. Actual For Capital Adequacy To Be Well Capitalized Under Prompt Corrective Action Provisions (2) (in thousands) Amount Ratio (1) Amount Ratio (1) Amount Ratio (1) December 31, 2021 Company Total risk-based capital $ 793,410 13.8 % $ 459,648 8.0 % Tier 1 risk-based capital 604,199 10.5 344,736 6.0 Common equity Tier 1 capital 567,095 9.9 258,552 4.5 Leverage 604,199 9.4 256,990 4.0 Bank Total risk-based capital $ 700,869 12.2 % $ 459,476 8.0 % $ 574,345 10.0 % Tier 1 risk-based capital 664,688 11.6 344,607 6.0 459,476 8.0 Common equity Tier 1 capital 664,688 11.6 258,455 4.5 373,324 6.5 Leverage 664,688 10.3 256,990 4.0 321,237 5.0 December 31, 2020 Company Total risk-based capital $ 406,325 12.9 % $ 252,683 8.0 % Tier 1 risk-based capital 385,068 12.2 189,512 6.0 Common equity Tier 1 capital 361,162 11.4 142,134 4.5 Leverage 385,068 9.0 170,402 4.0 Bank Total risk-based capital $ 351,081 11.2 % $ 251,769 8.0 % $ 314,711 10.0 % Tier 1 risk-based capital 329,824 10.5 188,826 6.0 251,769 8.0 Common equity Tier 1 capital 329,824 10.5 141,620 4.5 204,562 6.5 Leverage 329,824 7.8 170,025 4.0 212,532 5.0 (1) The Total risk-based capital ratio is defined as Tier 1 capital plus tier 2 capital divided by total risk-weighted assets. The Tier 1 risk-based capital ratio is defined as Tier 1 capital divided by total risk-weighted assets. CET1 risk-based capital ratio is defined as Tier 1 capital, with deductions for goodwill and other intangible assets (other than mortgage servicing assets), net of associated deferred tax liabilities, and limitations on the inclusion of deferred tax assets, mortgage servicing assets and investments in other financial institutions, in each case as provided further in the rules, divided by total risk-weighted assets. The Leverage ratio is defined as Tier 1 capital divided by the most recent quarter’s average total assets as adjusted. (2) Prompt corrective action provisions are not applicable at the bank holding company level. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value on a recurring basis | The following table presents the balances of assets and liabilities measured at fair value on a recurring basis for the periods presented. (in thousands) Fair Value Measurements Using Measured at Fair Value on a Recurring Basis: Total Level 1 Level 2 Level 3 December 31, 2021 U.S. government agency securities $ 191,277 $ — $ 191,277 $ — State, county and municipals 312,737 — 310,316 2,421 Mortgage-backed securities 271,262 — 270,260 1,002 Corporate debt securities 146,385 — 141,743 4,642 Securities AFS $ 921,661 $ — $ 913,596 $ 8,065 Other investments (equity securities) $ 5,660 $ 5,660 $ — $ — Derivative assets 1,064 — 1,064 — Derivative liabilities 1,064 — 1,064 — December 31, 2020 U.S. government agency securities $ 63,451 $ — $ 63,451 $ — State, county and municipals 231,868 — 231,868 — Mortgage-backed securities 162,495 — 162,495 — Corporate debt securities 81,523 — 78,393 3,130 Securities AFS $ 539,337 $ — $ 536,207 $ 3,130 Other investments (equity securities) $ 3,567 $ 3,567 $ — $ — Derivative assets 1,801 — 1,801 — Derivative liabilities 1,801 — 1,801 — |
Schedule of changes in Level 3 securities AFS measured at fair value on a recurring basis | The following table presents the changes in Level 3 securities AFS measured at fair value on a recurring basis. (in thousands) Years Ended Level 3 Fair Value Measurements: December 31, 2021 December 31, 2020 Balance at beginning of year $ 3,130 $ 3,130 Acquired balances 4,935 — Paydowns/Sales/Settlements — — Balance at end of year $ 8,065 $ 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 the 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 December 31, 2021 Collateral dependent loans $ 36,230 $ — $ — $ 36,230 OREO 11,955 — — 11,955 MSR asset 12,436 — — 12,436 LSR asset 20,055 — — 20,055 December 31, 2020 Collateral dependent loans $ 7,633 $ — $ — $ 7,633 OREO 3,608 — — 3,608 MSR asset 9,230 — — 9,230 |
Schedule of estimated fair values of financial instruments | The carrying amounts and estimated fair values of the Company's financial instruments are shown below. December 31, 2021 (in thousands) Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 595,292 $ 595,292 $ 595,292 $ — $ — Certificates of deposit in other banks 21,920 22,236 — 22,236 — Securities AFS 921,661 921,661 — 913,596 8,065 Securities HTM 651,803 648,394 — 648,394 — Other investments 44,008 44,008 5,660 32,110 6,238 Loans held for sale 6,447 6,616 — 6,616 — Loans, net 4,572,164 4,606,851 — — 4,606,851 MSR asset 12,436 15,599 — — 15,599 LSR asset 20,055 20,055 — — 20,055 Accrued interest receivable 15,277 15,277 15,277 — — Financial liabilities: Deposits $ 6,465,916 $ 6,463,064 $ — $ — $ 6,463,064 Long-term borrowings 216,915 216,092 — 25,097 190,995 Accrued interest payable 3,078 3,078 3,078 — — December 31, 2020 (in thousands) Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 802,859 $ 802,859 $ 802,859 $ — $ — Certificates of deposit in other banks 29,521 31,053 — 31,053 — Securities AFS 539,337 539,337 — 536,207 3,130 Other investments 27,619 27,619 3,567 20,155 3,897 Loans held for sale 21,450 22,329 — 22,329 — Loans, net 2,756,928 2,834,452 — — 2,834,452 MSR asset 9,230 9,276 — — 9,276 Accrued interest receivable 9,869 9,869 9,869 — — Financial liabilities: Deposits $ 3,910,399 $ 3,917,121 $ — $ — $ 3,917,121 Long-term borrowings 53,869 53,859 — 29,488 24,371 Accrued interest payable 799 799 799 — — |
PARENT COMPANY ONLY FINANCIAL_2
PARENT COMPANY ONLY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of parent company only condensed financial statements | Condensed Parent Company only financial statements of Nicolet Bankshares, Inc. follow. Balance Sheets December 31, (in thousands) 2021 2020 Assets Cash and due from subsidiary $ 84,656 $ 49,998 Investments 9,684 6,742 Investments in subsidiaries 998,032 513,736 Other assets 1,503 177 Total assets $ 1,093,875 $ 570,653 Liabilities and Stockholders’ Equity Junior subordinated debentures $ 38,885 $ 24,869 Subordinated notes 153,030 — Other liabilities 10,069 6,595 Stockholders’ equity 891,891 539,189 Total liabilities and stockholders’ equity $ 1,093,875 $ 570,653 Statements of Income Years Ended December 31, (in thousands) 2021 2020 2019 Interest income $ 18 $ 39 $ 55 Interest expense 2,959 2,313 2,936 Net interest expense (2,941) (2,274) (2,881) Dividend income from subsidiaries 65,000 60,215 50,363 Operating expense (2,562) (886) (321) Gain (loss) on investments, net 3,995 (1,087) 1,015 Income tax benefit 437 1,102 506 Earnings before equity in undistributed income (loss) of subsidiaries 63,929 57,070 48,682 Equity in undistributed income (loss) of subsidiaries (3,277) 3,052 5,959 Net income attributable to Nicolet Bankshares, Inc. $ 60,652 $ 60,122 $ 54,641 Statements of Cash Flows Years Ended December 31, (in thousands) 2021 2020 2019 Cash Flows From Operating Activities: Net income attributable to Nicolet Bankshares, Inc. $ 60,652 $ 60,122 $ 54,641 Adjustments to reconcile net income to net cash provided by operating activities: Accretion of discounts on borrowings 584 486 515 (Gain) loss on investments, net (3,995) 1,087 (1,015) Change in other assets and liabilities, net 1,013 1,786 (421) Equity in undistributed (income) loss of subsidiaries, net of dividends 3,277 (3,052) (5,959) Net cash provided by operating activities 61,531 60,429 47,761 Cash Flows from Investing Activities: Proceeds from sale of investments 4,105 185 — Purchases of investments (5,049) (1,179) (2,484) Net cash paid in business combinations (63,892) (21,644) (412) Net cash used in investing activities (64,836) (22,638) (2,896) Cash Flows From Financing Activities: Purchase and retirement of common stock (62,583) (42,088) (28,460) Proceeds from issuance of common stock, net 2,382 2,055 8,742 Capitalized issuance costs, net (789) — — Repayment of long-term borrowings — (18,186) — Proceeds from issuance of subordinated notes, net 98,953 — — Net cash provided by (used in) financing activities 37,963 (58,219) (19,718) Net increase (decrease) in cash and due from subsidiary 34,658 (20,428) 25,147 Beginning cash and due from subsidiary 49,998 70,426 45,279 Ending cash and due from subsidiary $ 84,656 $ 49,998 $ 70,426 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per common share | Presented below are the calculations for basic and diluted earnings per common share. Years Ended December 31, (in thousands, except per share data) 2021 2020 2019 Net income attributable to Nicolet Bankshares, Inc. $ 60,652 $ 60,122 $ 54,641 Weighted average common shares outstanding 10,736 10,337 9,562 Effect of dilutive common stock awards 409 204 338 Diluted weighted average common shares outstanding 11,145 10,541 9,900 Basic earnings per common share $ 5.65 $ 5.82 $ 5.71 Diluted earnings per common share $ 5.44 $ 5.70 $ 5.52 |
NATURE OF BUSINESS AND SIGNIF_4
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2021USD ($)subsidiary | Dec. 31, 2021USD ($)segmentsubsidiary | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Number of wholly owned subsidiaries | subsidiary | 3 | 3 | |||
Number of reportable segments | segment | 1 | ||||
Number of operating segments | segment | 1 | ||||
Restricted cash | $ 0 | $ 0 | $ 0 | $ 6,000,000 | |
Restricted cash pledged as collateral | $ 1,900,000 | $ 1,900,000 | 1,300,000 | ||
Loans, threshold period past due | 90 days | 90 days | |||
Material loans criteria for ACL-Loans adequacy calculation | $ 250,000 | ||||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Interest Receivable and Other Assets | Interest Receivable and Other Assets | Interest Receivable and Other Assets | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accrued interest payable and other liabilities | Accrued interest payable and other liabilities | Accrued interest payable and other liabilities | ||
Impairment charge | $ 0 | $ 0 | $ 800,000 | ||
Core deposit intangibles: | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Amortized period of core deposit intangible | 10 years | ||||
Customer list intangibles | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Amortized period of core deposit intangible | 12 years | ||||
Measured at Fair Value on a Recurring Basis | Equity Securities | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other investments (equity securities) | $ 5,660,000 | $ 5,660,000 | 3,567,000 | ||
Measured at Fair Value on a Recurring Basis | Equity Securities | Level 2 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other investments (equity securities) | 0 | 0 | 0 | ||
Measured at Fair Value on a Recurring Basis | Equity Securities | Level 3 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other investments (equity securities) | 0 | 0 | 0 | ||
Estimated Fair Value | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Restricted equity securities | 44,008,000 | 44,008,000 | 27,619,000 | ||
Estimated Fair Value | Level 2 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Restricted equity securities | 32,110,000 | 32,110,000 | 20,155,000 | ||
Estimated Fair Value | Level 3 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Restricted equity securities | 6,238,000 | 6,238,000 | $ 3,897,000 | ||
Estimated Fair Value | Measured at Fair Value on a Recurring Basis | Equity Securities | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other investments (equity securities) | $ 5,700,000 | $ 5,700,000 | |||
Nicolet Joint Ventures, LLC (the "JV") | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Ownership percentage in subsidiary | 100.00% | ||||
Nicolet Joint Ventures, LLC (the "JV") | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Ownership percentage by noncontrolling owners | 50.00% | ||||
Noncontrolling interest, ownership percentage purchased | 50.00% |
NATURE OF BUSINESS AND SIGNIF_5
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Estimated useful lives of premises and equipment (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Minimum | Building and improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of new premises and equipment | 25 years |
Minimum | Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of new premises and equipment | 5 years |
Minimum | Furniture and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of new premises and equipment | 3 years |
Maximum | Building and improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of new premises and equipment | 40 years |
Maximum | Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of new premises and equipment | 15 years |
Maximum | Furniture and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of new premises and equipment | 10 years |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) $ / shares in Units, $ in Thousands | Dec. 03, 2021USD ($)$ / sharesshares | Sep. 03, 2021USD ($)$ / sharesshares | Aug. 21, 2020USD ($)branch | May 18, 2020USD ($) | Nov. 08, 2019USD ($)$ / sharesshares | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Aug. 20, 2020 | Nov. 12, 2019branch | Nov. 07, 2019 |
Business Acquisition [Line Items] | ||||||||||
Acquisitions | $ 154,038 | $ 11,953 | ||||||||
Advantage Community Bancshares, Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Percentage of assets represented by acquiree | 0.04 | |||||||||
Choice Bancorp Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Percentage of assets represented by acquiree | 0.12 | |||||||||
Commerce Financial Holdings, Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Common stock surrendered | $ 100 | |||||||||
County Bancorp, Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash paid per acquiree share (in dollars per share) | $ / shares | $ 37.18 | |||||||||
Entity shares issued per acquiree share (in shares) | shares | 0.48 | |||||||||
Shares exchanged for cash (in shares) | shares | 1,237,000 | |||||||||
Number of common stock issued for consideration (in shares) | shares | 2,366,243 | |||||||||
Value of Nicolet common stock consideration | $ 176,000 | |||||||||
Cash consideration paid | 48,000 | |||||||||
Total purchase price | 224,000 | |||||||||
Assets acquired | 1,412,000 | |||||||||
Costs incurred related to stock issuance | $ 400 | |||||||||
Mackinac Financial Corporation | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash paid per acquiree share (in dollars per share) | $ / shares | $ 4.64 | |||||||||
Entity shares issued per acquiree share (in shares) | shares | 0.22 | |||||||||
Number of common stock issued for consideration (in shares) | shares | 2,337,230 | |||||||||
Value of Nicolet common stock consideration | $ 180,000 | |||||||||
Cash consideration paid | 49,000 | |||||||||
Total purchase price | $ 229,000 | |||||||||
Cash paid per acquiree share (in percent) | 20.00% | |||||||||
Entity shares issued per acquiree share (in percent) | 80.00% | |||||||||
Assets acquired | $ 1,556,000 | |||||||||
Costs incurred related to stock issuance | $ 400 | |||||||||
Advantage Community Bancshares, Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of branches | branch | 4 | |||||||||
Assets acquired | $ 172,000 | |||||||||
Loans acquired | 88,000 | |||||||||
Deposits acquired | 141,000 | |||||||||
Acquisitions | 12,000 | |||||||||
Advantage Community Bancshares, Inc. | Core deposit intangibles: | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets acquired | $ 1,000 | |||||||||
Choice Bancorp Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of common stock issued for consideration (in shares) | shares | 1,184,102 | |||||||||
Value of Nicolet common stock consideration | $ 79,800 | |||||||||
Cash consideration paid | 1,700 | |||||||||
Number of branches | branch | 2 | |||||||||
Assets acquired | 457,000 | |||||||||
Loans acquired | 348,000 | |||||||||
Deposits acquired | 289,000 | |||||||||
Acquisitions | $ 45,000 | |||||||||
Number of common stock for each outstanding share of common stock (in shares) | 0.00497 | |||||||||
Price per share for stock issued in consideration (in dollars per share) | $ / shares | $ 67.39 | |||||||||
Costs incurred related to stock issuance | $ 200 | |||||||||
Choice Bancorp Inc. | Core deposit intangibles: | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets acquired | $ 1,700 | |||||||||
Commerce Financial Holdings, Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Termination costs | $ 500 |
ACQUISITIONS - Summary of the a
ACQUISITIONS - Summary of the assets acquired and liabilities assumed, including preliminary purchase price allocation (Details) - USD ($) $ in Thousands | Dec. 03, 2021 | Sep. 03, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Assets Acquired: | |||||||||
Cash and cash equivalents | $ 595,292 | [1] | $ 802,859 | [1] | $ 182,059 | [1] | $ 249,526 | ||
Loans | 4,621,836 | 2,789,101 | |||||||
ACL-Loans | (49,672) | (32,173) | (13,972) | $ (13,153) | |||||
Premises and equipment | 94,566 | 59,944 | |||||||
BOLI | 134,476 | 83,262 | |||||||
Goodwill | 317,189 | 163,151 | 151,198 | ||||||
Total assets | 7,695,037 | 4,551,789 | |||||||
Liabilities Assumed: | |||||||||
Deposits | 6,465,916 | 3,910,399 | |||||||
Accrued interest payable and other liabilities | 68,729 | 48,332 | |||||||
Total liabilities | 6,803,146 | 4,012,600 | |||||||
Purchase Price: | |||||||||
Goodwill | 317,189 | $ 163,151 | $ 151,198 | ||||||
County Bancorp, Inc. | |||||||||
Assets Acquired: | |||||||||
Goodwill | 70,000 | ||||||||
Assets Acquired: | |||||||||
Investment securities | (1,000) | ||||||||
Loans | (1,000) | ||||||||
ACL-Loans | 8,000 | ||||||||
Premises and equipment | (4,000) | ||||||||
BOLI | 0 | ||||||||
Other intangibles | 7,000 | ||||||||
Loan servicing rights | 0 | ||||||||
Other assets | (2,000) | ||||||||
Total assets | 7,000 | ||||||||
Liabilities Assumed: | |||||||||
Deposits | 3,000 | ||||||||
Borrowings | 1,000 | ||||||||
Other liabilities | 0 | ||||||||
Total liabilities | 4,000 | ||||||||
Assets Acquired: | |||||||||
Cash and cash equivalents | 20,000 | ||||||||
Investment securities | 300,000 | ||||||||
Loans | 1,014,000 | ||||||||
ACL-Loans | (3,000) | ||||||||
Premises and equipment | 17,000 | ||||||||
BOLI | 33,000 | ||||||||
Other intangibles | 7,000 | ||||||||
Loan servicing rights | 20,000 | ||||||||
Other assets | 4,000 | ||||||||
Total assets | 1,412,000 | ||||||||
Liabilities Assumed: | |||||||||
Deposits | 1,030,000 | ||||||||
Borrowings | 219,000 | ||||||||
Other liabilities | 8,000 | ||||||||
Total liabilities | 1,257,000 | ||||||||
Net assets acquired | 155,000 | ||||||||
Purchase Price: | |||||||||
Nicolet common stock issued (in shares) | 2,366,243 | ||||||||
Value of Nicolet common stock consideration | $ 176,000 | ||||||||
Cash consideration paid | 48,000 | ||||||||
Total purchase price | 224,000 | ||||||||
Write-off prior investment in Mackinac | (1,000) | ||||||||
Goodwill | 70,000 | ||||||||
County Bancorp, Inc. | County Bancorp, Inc. | |||||||||
Assets Acquired: | |||||||||
Cash and cash equivalents | 20,000 | ||||||||
Investment securities | 301,000 | ||||||||
Loans | 1,015,000 | ||||||||
ACL-Loans | (11,000) | ||||||||
Premises and equipment | 21,000 | ||||||||
BOLI | 33,000 | ||||||||
Other intangibles | 0 | ||||||||
Loan servicing rights | 20,000 | ||||||||
Other assets | 6,000 | ||||||||
Total assets | 1,405,000 | ||||||||
Liabilities Assumed: | |||||||||
Deposits | 1,027,000 | ||||||||
Borrowings | 218,000 | ||||||||
Accrued interest payable and other liabilities | 8,000 | ||||||||
Total liabilities | $ 1,253,000 | ||||||||
Mackinac Financial Corporation | |||||||||
Assets Acquired: | |||||||||
Goodwill | $ 84,000 | ||||||||
Assets Acquired: | |||||||||
Investment securities | 0 | ||||||||
Loans | 10,000 | ||||||||
ACL-Loans | 4,000 | ||||||||
Premises and equipment | (3,000) | ||||||||
BOLI | 0 | ||||||||
Goodwill | (20,000) | ||||||||
Other intangibles | 3,000 | ||||||||
Other assets | (3,000) | ||||||||
Total assets | (9,000) | ||||||||
Liabilities Assumed: | |||||||||
Deposits | 1,000 | ||||||||
Borrowings | 1,000 | ||||||||
Other liabilities | 1,000 | ||||||||
Total liabilities | $ 3,000 | ||||||||
Assets Acquired: | |||||||||
Cash and cash equivalents | 448,000 | ||||||||
Investment securities | 104,000 | ||||||||
Loans | 940,000 | ||||||||
ACL-Loans | (2,000) | ||||||||
Premises and equipment | 21,000 | ||||||||
BOLI | 16,000 | ||||||||
Other intangibles | 7,000 | ||||||||
Other assets | 22,000 | ||||||||
Total assets | 1,556,000 | ||||||||
Liabilities Assumed: | |||||||||
Deposits | 1,366,000 | ||||||||
Borrowings | 29,000 | ||||||||
Other liabilities | 14,000 | ||||||||
Total liabilities | 1,409,000 | ||||||||
Net assets acquired | $ 147,000 | ||||||||
Purchase Price: | |||||||||
Nicolet common stock issued (in shares) | 2,337,230 | ||||||||
Value of Nicolet common stock consideration | $ 180,000 | ||||||||
Cash consideration paid | 49,000 | ||||||||
Total purchase price | 229,000 | ||||||||
Write-off prior investment in Mackinac | (2,000) | ||||||||
Goodwill | 84,000 | ||||||||
Mackinac Financial Corporation | Mackinac Financial Corporation | |||||||||
Assets Acquired: | |||||||||
Cash and cash equivalents | 448,000 | ||||||||
Investment securities | 104,000 | ||||||||
Loans | 930,000 | ||||||||
ACL-Loans | (6,000) | ||||||||
Premises and equipment | 24,000 | ||||||||
BOLI | 16,000 | ||||||||
Goodwill | 20,000 | ||||||||
Other intangibles | 4,000 | ||||||||
Other assets | 25,000 | ||||||||
Total assets | 1,565,000 | ||||||||
Liabilities Assumed: | |||||||||
Deposits | 1,365,000 | ||||||||
Borrowings | 28,000 | ||||||||
Accrued interest payable and other liabilities | 13,000 | ||||||||
Total liabilities | 1,406,000 | ||||||||
Purchase Price: | |||||||||
Goodwill | $ 20,000 | ||||||||
[1] | Cash and cash equivalents at December 31, 2021 included restricted cash of $1.9 million pledged as collateral on interest rate swaps and no reserve balance was required with the Federal Reserve. At December 31, 2020 cash and cash equivalents included restricted cash of $1.9 million pledged as collateral on interest rate swaps and no reserve balance was required with the Federal Reserve, while at December 31, 2019, cash and cash equivalents included $6.0 million for the reserve balance required with the Federal Reserve and $1.3 million was pledged as collateral on interest rate swaps. |
ACQUISITIONS - Carrying value o
ACQUISITIONS - Carrying value of PCD loans acquired (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 03, 2021 | Sep. 03, 2021 |
County Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Allowance for credit losses on PCD loans at acquisition | $ 3,000 | ||
Par value of PCD acquired loans at acquisition | 1,014,000 | ||
County Bancorp, Inc. | PCD loans aquired | |||
Business Acquisition [Line Items] | |||
Purchase price of PCD loans at acquisition | $ 64,948 | ||
Allowance for credit losses on PCD loans at acquisition | 3,262 | ||
Par value of PCD acquired loans at acquisition | $ 68,210 | ||
Mackinac Financial Corporation | |||
Business Acquisition [Line Items] | |||
Allowance for credit losses on PCD loans at acquisition | 2,000 | ||
Par value of PCD acquired loans at acquisition | $ 940,000 | ||
Mackinac Financial Corporation | PCD loans aquired | |||
Business Acquisition [Line Items] | |||
Purchase price of PCD loans at acquisition | $ 10,605 | ||
Allowance for credit losses on PCD loans at acquisition | 1,896 | ||
Par value of PCD acquired loans at acquisition | $ 12,501 |
ACQUISITIONS - Unaudited pro fo
ACQUISITIONS - Unaudited pro forma information (Details) - County Bancorp, Inc and Mackinac Financial Corporation - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | |||
Total revenue, net of interest expense | $ 320,307 | $ 308,325 | $ 283,930 |
Net income | $ 87,860 | $ 77,641 | $ 74,087 |
Diluted earnings per common share (in dollars per share) | $ 5.91 | $ 5.21 | $ 5.13 |
INVESTMENT SECURITIES - Amortiz
INVESTMENT SECURITIES - Amortized costs and fair values of securities AFS and HTM (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 917,412 | $ 521,876 |
Gross Unrealized Gains | 9,777 | 17,550 |
Gross Unrealized Losses | 5,528 | 89 |
Fair Value | $ 921,661 | $ 539,337 |
Fair Value as % of Total | 100.00% | 100.00% |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 651,803 | $ 0 |
Gross Unrealized Gains | 99 | |
Gross Unrealized Losses | 3,508 | |
Fair Value | $ 648,394 | |
Fair Value as % of Total | 100.00% | |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 192,506 | 63,162 |
Gross Unrealized Gains | 6 | 289 |
Gross Unrealized Losses | 1,235 | 0 |
Fair Value | $ 191,277 | $ 63,451 |
Fair Value as % of Total | 21.00% | 12.00% |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 508,810 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 2,740 | |
Fair Value | $ 506,070 | |
Fair Value as % of Total | 78.00% | |
State, county and municipals | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 311,717 | $ 226,493 |
Gross Unrealized Gains | 3,222 | 5,386 |
Gross Unrealized Losses | 2,202 | 11 |
Fair Value | $ 312,737 | $ 231,868 |
Fair Value as % of Total | 34.00% | 43.00% |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 42,876 | |
Gross Unrealized Gains | 10 | |
Gross Unrealized Losses | 173 | |
Fair Value | $ 42,713 | |
Fair Value as % of Total | 7.00% | |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 270,017 | $ 156,148 |
Gross Unrealized Gains | 3,090 | 6,425 |
Gross Unrealized Losses | 1,845 | 78 |
Fair Value | $ 271,262 | $ 162,495 |
Fair Value as % of Total | 29.00% | 30.00% |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 100,117 | |
Gross Unrealized Gains | 89 | |
Gross Unrealized Losses | 595 | |
Fair Value | $ 99,611 | |
Fair Value as % of Total | 15.00% | |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 143,172 | $ 76,073 |
Gross Unrealized Gains | 3,459 | 5,450 |
Gross Unrealized Losses | 246 | 0 |
Fair Value | $ 146,385 | $ 81,523 |
Fair Value as % of Total | 16.00% | 15.00% |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 0 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | $ 0 | |
Fair Value as % of Total | 0.00% |
INVESTMENT SECURITIES - Narrati
INVESTMENT SECURITIES - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2019 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Line Items] | |||
Purchases of securities HTM | $ 569,910,000 | ||
Securities pledged as collateral | 277,000,000 | $ 146,000,000 | |
Accrued interest on securities | 4,600,000 | 2,300,000 | |
Allowance for credit losses on securities AFS | 0 | $ 0 | |
Other-than-temporary impairment loss recognized on securities AFS | $ 0 | ||
U.S. government agency securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Purchases of securities HTM | $ 500,000,000 |
INVESTMENT SECURITIES - Gross u
INVESTMENT SECURITIES - Gross unrealized losses and the related fair value of securities available for sale (Details) $ in Thousands | Dec. 31, 2021USD ($)Security | Dec. 31, 2020USD ($)Security |
Fair Value | ||
Less than 12 months | $ 455,210 | $ 15,793 |
12 months or more | 7,845 | 492 |
Total | 463,055 | 16,285 |
Unrealized Losses | ||
Less than 12 months | 5,216 | 82 |
12 months or more | 312 | 7 |
Total | $ 5,528 | $ 89 |
Number of Securities | Security | 315 | 31 |
Fair Value | ||
Less than 12 months | $ 606,169 | |
12 months or more | 0 | |
Total | 606,169 | |
Unrealized Losses | ||
Less than 12 months | 3,508 | |
12 months or more | 0 | |
Total | $ 3,508 | |
Number of Securities | Security | 127 | |
U.S. government agency securities | ||
Fair Value | ||
Less than 12 months | $ 190,432 | |
12 months or more | 0 | |
Total | 190,432 | |
Unrealized Losses | ||
Less than 12 months | 1,235 | |
12 months or more | 0 | |
Total | $ 1,235 | |
Number of Securities | Security | 11 | |
Fair Value | ||
Less than 12 months | $ 505,938 | |
12 months or more | 0 | |
Total | 505,938 | |
Unrealized Losses | ||
Less than 12 months | 2,740 | |
12 months or more | 0 | |
Total | $ 2,740 | |
Number of Securities | Security | 9 | |
State, county and municipals | ||
Fair Value | ||
Less than 12 months | $ 103,950 | $ 5,181 |
12 months or more | 1,777 | 0 |
Total | 105,727 | 5,181 |
Unrealized Losses | ||
Less than 12 months | 2,119 | 11 |
12 months or more | 83 | 0 |
Total | $ 2,202 | $ 11 |
Number of Securities | Security | 132 | 9 |
Fair Value | ||
Less than 12 months | $ 30,898 | |
12 months or more | 0 | |
Total | 30,898 | |
Unrealized Losses | ||
Less than 12 months | 173 | |
12 months or more | 0 | |
Total | $ 173 | |
Number of Securities | Security | 46 | |
Mortgage-backed securities | ||
Fair Value | ||
Less than 12 months | $ 137,561 | $ 10,612 |
12 months or more | 6,068 | 492 |
Total | 143,629 | 11,104 |
Unrealized Losses | ||
Less than 12 months | 1,616 | 71 |
12 months or more | 229 | 7 |
Total | $ 1,845 | $ 78 |
Number of Securities | Security | 159 | 22 |
Fair Value | ||
Less than 12 months | $ 69,333 | |
12 months or more | 0 | |
Total | 69,333 | |
Unrealized Losses | ||
Less than 12 months | 595 | |
12 months or more | 0 | |
Total | $ 595 | |
Number of Securities | Security | 72 | |
Corporate debt securities | ||
Fair Value | ||
Less than 12 months | $ 23,267 | |
12 months or more | 0 | |
Total | 23,267 | |
Unrealized Losses | ||
Less than 12 months | 246 | |
12 months or more | 0 | |
Total | $ 246 | |
Number of Securities | Security | 13 |
INVESTMENT SECURITIES - Amort_2
INVESTMENT SECURITIES - Amortized cost and fair values of securities available for sale at by contractual maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Due in less than one year | $ 30,676 | |
Due in one year through five years | 333,207 | |
Due after five years through ten years | 200,780 | |
Due after ten years | 82,732 | |
Allocated and single maturity date | 647,395 | |
Amortized Cost | 917,412 | $ 521,876 |
Fair Value | ||
Due in less than one year | 30,916 | |
Due in one year through five years | 335,452 | |
Due after five years through ten years | 200,089 | |
Due after ten years | 83,942 | |
Allocated and single maturity date | 650,399 | |
Fair Value | 921,661 | 539,337 |
Amortized Cost | ||
Due in less than one year | 7,396 | |
Due in one year through five years | 501,002 | |
Due after five years through ten years | 34,128 | |
Due after ten years | 9,160 | |
Allocated and single maturity date | 551,686 | |
Amortized Cost | 651,803 | 0 |
Fair Value | ||
Due in less than one year | 7,394 | |
Due in one year through five years | 498,252 | |
Due after five years through ten years | 33,993 | |
Due after ten years | 9,144 | |
Allocated and single maturity date | 548,783 | |
Fair Value | 648,394 | |
Mortgage-backed securities | ||
Amortized Cost | ||
Mortgage-backed securities | 270,017 | |
Amortized Cost | 270,017 | 156,148 |
Fair Value | ||
Mortgage-backed securities | 271,262 | |
Fair Value | 271,262 | $ 162,495 |
Amortized Cost | ||
Mortgage-backed securities | 100,117 | |
Amortized Cost | 100,117 | |
Fair Value | ||
Mortgage-backed securities | 99,611 | |
Fair Value | $ 99,611 |
INVESTMENT SECURITIES - Proceed
INVESTMENT SECURITIES - Proceeds from sales of securities AFS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |||
Gross gains | $ 5 | $ 395 | $ 152 |
Gross losses | (288) | 0 | (174) |
Gains (losses) on sales of securities AFS, net | (283) | 395 | (22) |
Proceeds from sales of securities AFS | $ 42,973 | $ 19,045 | $ 23,405 |
LOANS, ALLOWANCE FOR CREDIT L_2
LOANS, ALLOWANCE FOR CREDIT LOSSES - LOANS, AND CREDIT QUALITY - Summary of loan composition (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 4,621,836 | $ 2,789,101 | ||
Less ACL-Loans | 49,672 | 32,173 | $ 13,972 | $ 13,153 |
Loans, net | $ 4,572,164 | $ 2,756,928 | ||
ACL-Loans to loans (in percent) | 1.07% | 1.15% | ||
% of Total | 100.00% | 100.00% | ||
Retail & other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 50,807 | $ 31,695 | ||
Less ACL-Loans | $ 932 | $ 557 | 344 | |
% of Total | 1.00% | 1.00% | ||
Commercial Portfolio Segment | Commercial & industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 1,017,725 | $ 750,718 | ||
Less ACL-Loans | $ 12,613 | $ 11,644 | 5,471 | |
% of Total | 22.00% | 27.00% | ||
Commercial Portfolio Segment | Paycheck Protection Program (“PPP”) loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 24,531 | $ 186,016 | ||
% of Total | 1.00% | 7.00% | ||
Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 787,189 | $ 521,300 | ||
Less ACL-Loans | $ 7,222 | $ 5,872 | 3,010 | |
% of Total | 17.00% | 19.00% | ||
Commercial Portfolio Segment | Agricultural | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 794,728 | $ 109,629 | ||
Less ACL-Loans | $ 9,547 | $ 1,395 | 579 | |
% of Total | 17.00% | 4.00% | ||
Commercial Real Estate Portfolio Segment | CRE investment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 818,061 | $ 460,721 | ||
Less ACL-Loans | $ 8,462 | $ 5,441 | 1,600 | |
% of Total | 18.00% | 16.00% | ||
Commercial Real Estate Portfolio Segment | Construction & land development | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 213,035 | $ 131,283 | ||
Less ACL-Loans | $ 1,812 | $ 984 | 414 | |
% of Total | 5.00% | 5.00% | ||
Residential | Residential first mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 713,983 | $ 444,155 | ||
Less ACL-Loans | $ 6,844 | $ 4,773 | 1,669 | |
% of Total | 15.00% | 16.00% | ||
Residential | Residential junior mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 131,424 | $ 111,877 | ||
Less ACL-Loans | $ 1,340 | $ 1,086 | 517 | |
% of Total | 3.00% | 4.00% | ||
Residential | Residential construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 70,353 | $ 41,707 | ||
Less ACL-Loans | $ 900 | $ 421 | $ 368 | |
% of Total | 1.00% | 1.00% |
LOANS, ALLOWANCE FOR CREDIT L_3
LOANS, ALLOWANCE FOR CREDIT LOSSES - LOANS, AND CREDIT QUALITY- Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($)loan | Dec. 31, 2020USD ($) | |
Receivables [Abstract] | ||
Accrued interest on loans | $ 11 | $ 7 |
ACL-Unfunded Commitments | $ 2.4 | |
Number of loans classified as troubled debt with subsequent default | loan | 0 |
LOANS, ALLOWANCE FOR CREDIT L_4
LOANS, ALLOWANCE FOR CREDIT LOSSES - LOANS, AND CREDIT QUALITY - Summary of allowance for credit losses - loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 32,173 | $ 13,972 | $ 13,153 |
ACL on PCD loans acquired | 5,159 | 0 | 0 |
Provision for credit losses | 12,500 | 10,300 | 1,200 |
Charge-offs | (513) | (1,689) | (927) |
Recoveries | 353 | 305 | 546 |
Net (charge-offs) recoveries | (160) | (1,384) | (381) |
Ending balance | $ 49,672 | 32,173 | 13,972 |
Adoption of CECL | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 8,488 | ||
Ending balance | 8,488 | ||
Initial PCD ACL | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 797 | ||
Ending balance | 797 | ||
Total impact for adoption of CECL | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 9,285 | ||
Ending balance | $ 9,285 |
LOANS, ALLOWANCE FOR CREDIT L_5
LOANS, ALLOWANCE FOR CREDIT LOSSES - LOANS, AND CREDIT QUALITY - Summary of changes in ACL-Loans by portfolio segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 32,173 | $ 13,972 | $ 13,153 |
ACL on PCD loans acquired | 5,159 | 0 | 0 |
Provision for credit losses | 12,500 | 10,300 | 1,200 |
Charge-offs | (513) | (1,689) | (927) |
Recoveries | 353 | 305 | 546 |
Net (charge-offs) recoveries | (160) | (1,384) | (381) |
Ending balance | $ 49,672 | $ 32,173 | 13,972 |
As % of ACL-Loans | 100.00% | 100.00% | |
Adoption of CECL | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 8,488 | ||
Ending balance | 8,488 | ||
Initial PCD ACL | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 797 | ||
Ending balance | 797 | ||
Retail & other | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 557 | 344 | |
ACL on PCD loans acquired | 3 | ||
Provision for credit losses | 443 | 208 | |
Charge-offs | (106) | (155) | |
Recoveries | 35 | 26 | |
Net (charge-offs) recoveries | (71) | (129) | |
Ending balance | $ 932 | $ 557 | 344 |
As % of ACL-Loans | 2.00% | 2.00% | |
Retail & other | Adoption of CECL | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 134 | ||
Ending balance | 134 | ||
Retail & other | Initial PCD ACL | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Commercial Portfolio Segment | Commercial & industrial | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 11,644 | 5,471 | |
ACL on PCD loans acquired | 723 | ||
Provision for credit losses | 196 | 3,106 | |
Charge-offs | (242) | (812) | |
Recoveries | 292 | 120 | |
Net (charge-offs) recoveries | 50 | (692) | |
Ending balance | $ 12,613 | $ 11,644 | 5,471 |
As % of ACL-Loans | 25.00% | 36.00% | |
Commercial Portfolio Segment | Commercial & industrial | Adoption of CECL | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 2,962 | ||
Ending balance | 2,962 | ||
Commercial Portfolio Segment | Commercial & industrial | Initial PCD ACL | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 797 | ||
Ending balance | 797 | ||
Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 5,872 | 3,010 | |
ACL on PCD loans acquired | 1,045 | ||
Provision for credit losses | 305 | 2,062 | |
Charge-offs | 0 | (530) | |
Recoveries | 0 | 81 | |
Net (charge-offs) recoveries | 0 | (449) | |
Ending balance | $ 7,222 | $ 5,872 | 3,010 |
As % of ACL-Loans | 14.00% | 18.00% | |
Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | Adoption of CECL | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 1,249 | ||
Ending balance | 1,249 | ||
Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | Initial PCD ACL | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Commercial Portfolio Segment | Agricultural | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 1,395 | 579 | |
ACL on PCD loans acquired | 2,585 | ||
Provision for credit losses | 5,615 | 455 | |
Charge-offs | (48) | 0 | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | (48) | 0 | |
Ending balance | $ 9,547 | $ 1,395 | 579 |
As % of ACL-Loans | 19.00% | 4.00% | |
Commercial Portfolio Segment | Agricultural | Adoption of CECL | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 361 | ||
Ending balance | 361 | ||
Commercial Portfolio Segment | Agricultural | Initial PCD ACL | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Commercial Real Estate Portfolio Segment | CRE investment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 5,441 | 1,600 | |
ACL on PCD loans acquired | 415 | ||
Provision for credit losses | 2,608 | 2,061 | |
Charge-offs | (4) | (190) | |
Recoveries | 2 | 0 | |
Net (charge-offs) recoveries | (2) | (190) | |
Ending balance | $ 8,462 | $ 5,441 | 1,600 |
As % of ACL-Loans | 17.00% | 17.00% | |
Commercial Real Estate Portfolio Segment | CRE investment | Adoption of CECL | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 1,970 | ||
Ending balance | 1,970 | ||
Commercial Real Estate Portfolio Segment | CRE investment | Initial PCD ACL | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Commercial Real Estate Portfolio Segment | Construction & land development | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 984 | 414 | |
ACL on PCD loans acquired | 103 | ||
Provision for credit losses | 725 | 519 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | |
Ending balance | $ 1,812 | $ 984 | 414 |
As % of ACL-Loans | 4.00% | 3.00% | |
Commercial Real Estate Portfolio Segment | Construction & land development | Adoption of CECL | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 51 | ||
Ending balance | 51 | ||
Commercial Real Estate Portfolio Segment | Construction & land development | Initial PCD ACL | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Residential | Residential first mortgage | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 4,773 | 1,669 | |
ACL on PCD loans acquired | 272 | ||
Provision for credit losses | 1,892 | 1,809 | |
Charge-offs | (113) | (2) | |
Recoveries | 20 | 11 | |
Net (charge-offs) recoveries | (93) | 9 | |
Ending balance | $ 6,844 | $ 4,773 | 1,669 |
As % of ACL-Loans | 14.00% | 15.00% | |
Residential | Residential first mortgage | Adoption of CECL | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 1,286 | ||
Ending balance | 1,286 | ||
Residential | Residential first mortgage | Initial PCD ACL | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Residential | Residential junior mortgage | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 1,086 | 517 | |
ACL on PCD loans acquired | 13 | ||
Provision for credit losses | 237 | 151 | |
Charge-offs | 0 | 0 | |
Recoveries | 4 | 67 | |
Net (charge-offs) recoveries | 4 | 67 | |
Ending balance | $ 1,340 | $ 1,086 | 517 |
As % of ACL-Loans | 3.00% | 4.00% | |
Residential | Residential junior mortgage | Adoption of CECL | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 351 | ||
Ending balance | 351 | ||
Residential | Residential junior mortgage | Initial PCD ACL | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Residential | Residential construction | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 421 | 368 | |
ACL on PCD loans acquired | 0 | ||
Provision for credit losses | 479 | (71) | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | |
Ending balance | $ 900 | $ 421 | 368 |
As % of ACL-Loans | 2.00% | 1.00% | |
Residential | Residential construction | Adoption of CECL | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 124 | ||
Ending balance | 124 | ||
Residential | Residential construction | Initial PCD ACL | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 0 | ||
Ending balance | $ 0 |
LOANS, ALLOWANCE FOR CREDIT L_6
LOANS, ALLOWANCE FOR CREDIT LOSSES - LOANS, AND CREDIT QUALITY - Provision for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Receivables [Abstract] | |||
Loans | $ 12,500 | $ 10,300 | $ 1,200 |
Unfunded Commitments | 2,400 | 0 | 0 |
Investment securities | 0 | 0 | 0 |
Total | $ 14,900 | $ 10,300 | $ 1,200 |
LOANS, ALLOWANCE FOR CREDIT L_7
LOANS, ALLOWANCE FOR CREDIT LOSSES - LOANS, AND CREDIT QUALITY - Collateral dependent loans by portfolio segment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | $ 38,499 | $ 8,877 |
Without an Allowance | 31,279 | 7,180 |
With an Allowance | 7,220 | 1,697 |
Allowance Allocation | 2,269 | 1,244 |
Retail & other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Without an Allowance | 0 | 0 |
With an Allowance | 0 | 0 |
Allowance Allocation | 0 | 0 |
Commercial Portfolio Segment | Commercial & industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 2,296 | 2,195 |
Without an Allowance | 1,842 | 501 |
With an Allowance | 454 | 1,694 |
Allowance Allocation | 258 | 1,241 |
Commercial Portfolio Segment | PPP loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Without an Allowance | 0 | 0 |
With an Allowance | 0 | 0 |
Allowance Allocation | 0 | 0 |
Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 3,537 | 3,519 |
Without an Allowance | 1,315 | 3,519 |
With an Allowance | 2,222 | 0 |
Allowance Allocation | 552 | 0 |
Commercial Portfolio Segment | Agricultural | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 28,155 | 1,381 |
Without an Allowance | 25,310 | 1,378 |
With an Allowance | 2,845 | 3 |
Allowance Allocation | 841 | 3 |
Commercial Real Estate Portfolio Segment | CRE investment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 3,000 | 1,474 |
Without an Allowance | 1,684 | 1,474 |
With an Allowance | 1,316 | 0 |
Allowance Allocation | 407 | 0 |
Commercial Real Estate Portfolio Segment | Construction & land development | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 1,038 | 308 |
Without an Allowance | 655 | 308 |
With an Allowance | 383 | 0 |
Allowance Allocation | 211 | 0 |
Residential | Residential first mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 473 | 0 |
Without an Allowance | 473 | 0 |
With an Allowance | 0 | 0 |
Allowance Allocation | 0 | 0 |
Residential | Residential junior mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Without an Allowance | 0 | 0 |
With an Allowance | 0 | 0 |
Allowance Allocation | 0 | 0 |
Residential | Residential construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Without an Allowance | 0 | 0 |
With an Allowance | 0 | 0 |
Allowance Allocation | 0 | 0 |
Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 27,685 | 5,885 |
Real Estate | Retail & other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Real Estate | Commercial Portfolio Segment | Commercial & industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Real Estate | Commercial Portfolio Segment | PPP loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Real Estate | Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 3,537 | 3,519 |
Real Estate | Commercial Portfolio Segment | Agricultural | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 19,637 | 584 |
Real Estate | Commercial Real Estate Portfolio Segment | CRE investment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 3,000 | 1,474 |
Real Estate | Commercial Real Estate Portfolio Segment | Construction & land development | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 1,038 | 308 |
Real Estate | Residential | Residential first mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 473 | 0 |
Real Estate | Residential | Residential junior mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Real Estate | Residential | Residential construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Other Business Assets | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 10,814 | 2,992 |
Other Business Assets | Retail & other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Other Business Assets | Commercial Portfolio Segment | Commercial & industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 2,296 | 2,195 |
Other Business Assets | Commercial Portfolio Segment | PPP loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Other Business Assets | Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Other Business Assets | Commercial Portfolio Segment | Agricultural | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 8,518 | 797 |
Other Business Assets | Commercial Real Estate Portfolio Segment | CRE investment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Other Business Assets | Commercial Real Estate Portfolio Segment | Construction & land development | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Other Business Assets | Residential | Residential first mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Other Business Assets | Residential | Residential junior mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Other Business Assets | Residential | Residential construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | $ 0 | $ 0 |
LOANS, ALLOWANCE FOR CREDIT L_8
LOANS, ALLOWANCE FOR CREDIT LOSSES - LOANS, AND CREDIT QUALITY - Summary of loans by past due status (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 4,621,836 | $ 2,789,101 |
Percent of total loans | 100.00% | 100.00% |
30-89 Days Past Due (accruing) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 3,292 | $ 765 |
Percent past due | 0.10% | 0.00% |
90 Days & Over or nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 44,154 | $ 9,455 |
Percent past due | 0.90% | 0.40% |
Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 4,574,390 | $ 2,778,881 |
Percent of current loans | 99.00% | 99.60% |
Retail & other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 50,807 | $ 31,695 |
Retail & other | 30-89 Days Past Due (accruing) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 115 | 102 |
Retail & other | 90 Days & Over or nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 94 | 88 |
Retail & other | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 50,598 | 31,505 |
Commercial Portfolio Segment | Commercial & industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,017,725 | 750,718 |
Commercial Portfolio Segment | Commercial & industrial | 30-89 Days Past Due (accruing) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 94 | 0 |
Commercial Portfolio Segment | Commercial & industrial | 90 Days & Over or nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,908 | 2,646 |
Commercial Portfolio Segment | Commercial & industrial | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,015,723 | 748,072 |
Commercial Portfolio Segment | PPP loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 24,531 | 186,016 |
Commercial Portfolio Segment | PPP loans | 30-89 Days Past Due (accruing) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 0 |
Commercial Portfolio Segment | PPP loans | 90 Days & Over or nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 0 |
Commercial Portfolio Segment | PPP loans | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 24,531 | 186,016 |
Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 787,189 | 521,300 |
Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | 30-89 Days Past Due (accruing) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 0 |
Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | 90 Days & Over or nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,220 | 1,869 |
Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 782,969 | 519,431 |
Commercial Portfolio Segment | Agricultural | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 794,728 | 109,629 |
Commercial Portfolio Segment | Agricultural | 30-89 Days Past Due (accruing) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 108 | 7 |
Commercial Portfolio Segment | Agricultural | 90 Days & Over or nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 28,367 | 1,830 |
Commercial Portfolio Segment | Agricultural | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 766,253 | 107,792 |
Commercial Real Estate Portfolio Segment | CRE investment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 818,061 | 460,721 |
Commercial Real Estate Portfolio Segment | CRE investment | 30-89 Days Past Due (accruing) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 114 | 0 |
Commercial Real Estate Portfolio Segment | CRE investment | 90 Days & Over or nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,119 | 1,488 |
Commercial Real Estate Portfolio Segment | CRE investment | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 813,828 | 459,233 |
Commercial Real Estate Portfolio Segment | Construction & land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 213,035 | 131,283 |
Commercial Real Estate Portfolio Segment | Construction & land development | 30-89 Days Past Due (accruing) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 0 |
Commercial Real Estate Portfolio Segment | Construction & land development | 90 Days & Over or nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,071 | 327 |
Commercial Real Estate Portfolio Segment | Construction & land development | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 211,964 | 130,956 |
Residential | Residential first mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 713,983 | 444,155 |
Residential | Residential first mortgage | 30-89 Days Past Due (accruing) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 2,592 | 613 |
Residential | Residential first mortgage | 90 Days & Over or nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,132 | 823 |
Residential | Residential first mortgage | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 707,259 | 442,719 |
Residential | Residential junior mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 131,424 | 111,877 |
Residential | Residential junior mortgage | 30-89 Days Past Due (accruing) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 23 | 43 |
Residential | Residential junior mortgage | 90 Days & Over or nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 243 | 384 |
Residential | Residential junior mortgage | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 131,158 | 111,450 |
Residential | Residential construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 70,353 | 41,707 |
Residential | Residential construction | 30-89 Days Past Due (accruing) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 246 | 0 |
Residential | Residential construction | 90 Days & Over or nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 0 |
Residential | Residential construction | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 70,107 | $ 41,707 |
LOANS, ALLOWANCE FOR CREDIT L_9
LOANS, ALLOWANCE FOR CREDIT LOSSES - LOANS, AND CREDIT QUALITY - Nonaccrual loans by portfolio segment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 44,154 | $ 9,455 |
Percent of total loans | 0.90% | 0.40% |
% to Total | 100.00% | 100.00% |
Retail & other | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 94 | $ 88 |
% to Total | 0.00% | 1.00% |
Commercial Portfolio Segment | Commercial & industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 1,908 | $ 2,646 |
% to Total | 4.00% | 28.00% |
Commercial Portfolio Segment | Paycheck Protection Program (“PPP”) loans | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 0 | $ 0 |
% to Total | 0.00% | 0.00% |
Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 4,220 | $ 1,869 |
% to Total | 10.00% | 20.00% |
Commercial Portfolio Segment | Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 28,367 | $ 1,830 |
% to Total | 64.00% | 19.00% |
Commercial Real Estate Portfolio Segment | CRE investment | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 4,119 | $ 1,488 |
% to Total | 9.00% | 16.00% |
Commercial Real Estate Portfolio Segment | Construction & land development | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 1,071 | $ 327 |
% to Total | 3.00% | 3.00% |
Residential | Residential first mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 4,132 | $ 823 |
% to Total | 9.00% | 9.00% |
Residential | Residential junior mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 243 | $ 384 |
% to Total | 1.00% | 4.00% |
Residential | Residential construction | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 0 | $ 0 |
% to Total | 0.00% | 0.00% |
LOANS, ALLOWANCE FOR CREDIT _10
LOANS, ALLOWANCE FOR CREDIT LOSSES - LOANS, AND CREDIT QUALITY - Summary of loans by loan risk categories (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | $ 1,211,408 | $ 800,139 |
2020/2019 | 733,060 | 400,410 |
2019/2018 | 592,366 | 299,024 |
2018/2017 | 306,359 | 270,810 |
2017/2016 | 283,629 | 153,024 |
Prior | 771,550 | 519,961 |
Revolving | 722,034 | 344,080 |
Revolving to Term | 1,430 | 1,653 |
Loans | 4,621,836 | 2,789,101 |
Loans | $ 4,621,836 | $ 2,789,101 |
Percent of total loans | 100.00% | 100.00% |
Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 4,294,134 | $ 2,668,095 |
Percent of total loans | 92.90% | 95.70% |
Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 224,741 | $ 78,864 |
Percent of total loans | 4.90% | 2.80% |
Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 5,703 | $ 12,053 |
Percent of total loans | 0.10% | 0.40% |
Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 97,258 | $ 30,089 |
Percent of total loans | 2.10% | 1.10% |
Retail & other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | $ 13,676 | $ 8,099 |
2020/2019 | 6,910 | 5,213 |
2019/2018 | 5,828 | 1,964 |
2018/2017 | 2,072 | 1,676 |
2017/2016 | 1,882 | 752 |
Prior | 20,164 | 1,389 |
Revolving | 275 | 12,602 |
Revolving to Term | 0 | 0 |
Loans | 50,807 | 31,695 |
Loans | 50,807 | 31,695 |
Retail & other | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 13,676 | 8,083 |
2020/2019 | 6,886 | 5,213 |
2019/2018 | 5,826 | 1,942 |
2018/2017 | 2,053 | 1,676 |
2017/2016 | 1,882 | 752 |
Prior | 20,102 | 1,339 |
Revolving | 275 | 12,602 |
Revolving to Term | 0 | 0 |
Loans | 50,700 | 31,607 |
Loans | 50,700 | 31,607 |
Retail & other | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 0 | 0 |
2017/2016 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 0 | 0 |
Loans | 0 | 0 |
Retail & other | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 0 | 0 |
2017/2016 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 0 | 0 |
Loans | 0 | 0 |
Retail & other | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 16 |
2020/2019 | 24 | 0 |
2019/2018 | 2 | 22 |
2018/2017 | 19 | 0 |
2017/2016 | 0 | 0 |
Prior | 62 | 50 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 107 | 88 |
Loans | 107 | 88 |
Commercial Portfolio Segment | Commercial & industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 284,652 | 350,093 |
2020/2019 | 148,530 | 125,373 |
2019/2018 | 104,779 | 105,530 |
2018/2017 | 76,311 | 78,532 |
2017/2016 | 56,460 | 23,402 |
Prior | 74,178 | 46,740 |
Revolving | 297,346 | 207,064 |
Revolving to Term | 0 | 0 |
Loans | 1,042,256 | 936,734 |
Commercial Portfolio Segment | Commercial & industrial | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 282,369 | 348,274 |
2020/2019 | 146,131 | 121,989 |
2019/2018 | 99,702 | 98,920 |
2018/2017 | 69,478 | 72,027 |
2017/2016 | 50,557 | 21,613 |
Prior | 71,247 | 39,454 |
Revolving | 288,115 | 183,858 |
Revolving to Term | 0 | 0 |
Loans | 1,007,599 | 886,135 |
Commercial Portfolio Segment | Commercial & industrial | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 1,685 | 1,416 |
2020/2019 | 1,905 | 2,239 |
2019/2018 | 4,369 | 4,486 |
2018/2017 | 5,809 | 527 |
2017/2016 | 4,860 | 1,638 |
Prior | 2,097 | 4,151 |
Revolving | 8,408 | 18,994 |
Revolving to Term | 0 | 0 |
Loans | 29,133 | 33,451 |
Commercial Portfolio Segment | Commercial & industrial | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 598 | 69 |
2020/2019 | 54 | 19 |
2019/2018 | 16 | 735 |
2018/2017 | 687 | 5,315 |
2017/2016 | 67 | 29 |
Prior | 91 | 32 |
Revolving | 391 | 1,923 |
Revolving to Term | 0 | 0 |
Loans | 1,904 | 8,122 |
Commercial Portfolio Segment | Commercial & industrial | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 334 |
2020/2019 | 440 | 1,126 |
2019/2018 | 692 | 1,389 |
2018/2017 | 337 | 663 |
2017/2016 | 976 | 122 |
Prior | 743 | 3,103 |
Revolving | 432 | 2,289 |
Revolving to Term | 0 | 0 |
Loans | 3,620 | 9,026 |
Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 162,331 | 93,731 |
2020/2019 | 100,443 | 75,327 |
2019/2018 | 115,311 | 79,538 |
2018/2017 | 94,671 | 62,997 |
2017/2016 | 81,644 | 46,144 |
Prior | 224,198 | 162,693 |
Revolving | 8,591 | 870 |
Revolving to Term | 0 | 0 |
Loans | 787,189 | 521,300 |
Loans | 787,189 | 521,300 |
Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 154,578 | 90,702 |
2020/2019 | 94,300 | 74,029 |
2019/2018 | 105,226 | 78,013 |
2018/2017 | 92,128 | 52,911 |
2017/2016 | 75,583 | 45,042 |
Prior | 202,816 | 150,624 |
Revolving | 6,945 | 870 |
Revolving to Term | 0 | 0 |
Loans | 731,576 | 492,191 |
Loans | 731,576 | 492,191 |
Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 7,753 | 42 |
2020/2019 | 3,019 | 623 |
2019/2018 | 6,529 | 1,349 |
2018/2017 | 2,543 | 7,541 |
2017/2016 | 2,515 | 1,102 |
Prior | 13,905 | 5,842 |
Revolving | 656 | 0 |
Revolving to Term | 0 | 0 |
Loans | 36,920 | 16,499 |
Loans | 36,920 | 16,499 |
Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 1,642 | 0 |
2018/2017 | 0 | 1,710 |
2017/2016 | 20 | 0 |
Prior | 805 | 706 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 2,467 | 2,416 |
Loans | 2,467 | 2,416 |
Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 2,987 |
2020/2019 | 3,124 | 675 |
2019/2018 | 1,914 | 176 |
2018/2017 | 0 | 835 |
2017/2016 | 3,526 | 0 |
Prior | 6,672 | 5,521 |
Revolving | 990 | 0 |
Revolving to Term | 0 | 0 |
Loans | 16,226 | 10,194 |
Loans | 16,226 | 10,194 |
Commercial Portfolio Segment | Agricultural | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 146,522 | 14,753 |
2020/2019 | 96,036 | 5,652 |
2019/2018 | 34,333 | 8,307 |
2018/2017 | 28,003 | 10,353 |
2017/2016 | 47,511 | 4,758 |
Prior | 167,198 | 43,875 |
Revolving | 275,125 | 21,931 |
Revolving to Term | 0 | 0 |
Loans | 794,728 | 109,629 |
Loans | 794,728 | 109,629 |
Commercial Portfolio Segment | Agricultural | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 128,404 | 13,719 |
2020/2019 | 87,844 | 5,652 |
2019/2018 | 28,416 | 7,580 |
2018/2017 | 22,887 | 9,745 |
2017/2016 | 36,298 | 2,613 |
Prior | 86,104 | 32,702 |
Revolving | 235,743 | 21,513 |
Revolving to Term | 0 | 0 |
Loans | 625,696 | 93,524 |
Loans | 625,696 | 93,524 |
Commercial Portfolio Segment | Agricultural | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 14,796 | 1,034 |
2020/2019 | 4,183 | 0 |
2019/2018 | 2,391 | 701 |
2018/2017 | 915 | 169 |
2017/2016 | 3,912 | 644 |
Prior | 48,373 | 6,131 |
Revolving | 26,778 | 356 |
Revolving to Term | 0 | 0 |
Loans | 101,348 | 9,035 |
Loans | 101,348 | 9,035 |
Commercial Portfolio Segment | Agricultural | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 38 | 0 |
2020/2019 | 38 | 0 |
2019/2018 | 36 | 0 |
2018/2017 | 0 | 329 |
2017/2016 | 86 | 390 |
Prior | 1,049 | 0 |
Revolving | 85 | 0 |
Revolving to Term | 0 | 0 |
Loans | 1,332 | 719 |
Loans | 1,332 | 719 |
Commercial Portfolio Segment | Agricultural | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 3,284 | 0 |
2020/2019 | 3,971 | 0 |
2019/2018 | 3,490 | 26 |
2018/2017 | 4,201 | 110 |
2017/2016 | 7,215 | 1,111 |
Prior | 31,672 | 5,042 |
Revolving | 12,519 | 62 |
Revolving to Term | 0 | 0 |
Loans | 66,352 | 6,351 |
Loans | 66,352 | 6,351 |
Commercial Portfolio Segment | Paycheck Protection Program (“PPP”) loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 24,531 | 186,016 |
Loans | 24,531 | 186,016 |
Commercial Portfolio Segment | Paycheck Protection Program (“PPP”) loans | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 24,000 | 186,000 |
Loans | 25,000 | 186,000 |
Loans | 24,531 | 186,016 |
Commercial Portfolio Segment | Paycheck Protection Program (“PPP”) loans | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Commercial Portfolio Segment | Paycheck Protection Program (“PPP”) loans | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Commercial Portfolio Segment | Paycheck Protection Program (“PPP”) loans | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Commercial Portfolio Segment | Commercial & industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,017,725 | 750,718 |
Loans | 1,017,725 | 750,718 |
Commercial Portfolio Segment | Commercial & industrial | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 983,068 | 700,119 |
Commercial Portfolio Segment | Commercial & industrial | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 29,133 | 33,451 |
Commercial Portfolio Segment | Commercial & industrial | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,904 | 8,122 |
Commercial Portfolio Segment | Commercial & industrial | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 3,620 | 9,026 |
Commercial Real Estate Portfolio Segment | CRE investment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 203,355 | 82,518 |
2020/2019 | 142,128 | 78,841 |
2019/2018 | 143,259 | 40,928 |
2018/2017 | 60,234 | 71,723 |
2017/2016 | 73,104 | 33,369 |
Prior | 184,461 | 148,087 |
Revolving | 11,520 | 5,255 |
Revolving to Term | 0 | 0 |
Loans | 818,061 | 460,721 |
Loans | 818,061 | 460,721 |
Commercial Real Estate Portfolio Segment | CRE investment | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 192,274 | 82,518 |
2020/2019 | 139,127 | 78,841 |
2019/2018 | 136,306 | 40,881 |
2018/2017 | 56,148 | 69,643 |
2017/2016 | 65,026 | 31,541 |
Prior | 162,991 | 137,048 |
Revolving | 11,289 | 5,255 |
Revolving to Term | 0 | 0 |
Loans | 763,161 | 445,727 |
Loans | 763,161 | 445,727 |
Commercial Real Estate Portfolio Segment | CRE investment | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 11,081 | 0 |
2020/2019 | 3,001 | 0 |
2019/2018 | 6,497 | 47 |
2018/2017 | 3,945 | 1,284 |
2017/2016 | 6,726 | 1,828 |
Prior | 17,527 | 9,073 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 48,777 | 12,232 |
Loans | 48,777 | 12,232 |
Commercial Real Estate Portfolio Segment | CRE investment | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 0 | 796 |
2017/2016 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 0 | 796 |
Loans | 0 | 796 |
Commercial Real Estate Portfolio Segment | CRE investment | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 456 | 0 |
2018/2017 | 141 | 0 |
2017/2016 | 1,352 | 0 |
Prior | 3,943 | 1,966 |
Revolving | 231 | 0 |
Revolving to Term | 0 | 0 |
Loans | 6,123 | 1,966 |
Loans | 6,123 | 1,966 |
Commercial Real Estate Portfolio Segment | Construction & land development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 82,531 | 67,578 |
2020/2019 | 72,415 | 31,106 |
2019/2018 | 13,068 | 15,869 |
2018/2017 | 20,430 | 2,749 |
2017/2016 | 1,201 | 2,083 |
Prior | 12,447 | 7,768 |
Revolving | 10,943 | 4,130 |
Revolving to Term | 0 | 0 |
Loans | 213,035 | 131,283 |
Loans | 213,035 | 131,283 |
Commercial Real Estate Portfolio Segment | Construction & land development | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 81,891 | 67,578 |
2020/2019 | 72,415 | 30,733 |
2019/2018 | 12,547 | 15,209 |
2018/2017 | 19,511 | 2,204 |
2017/2016 | 1,184 | 2,083 |
Prior | 11,274 | 7,266 |
Revolving | 10,943 | 3,675 |
Revolving to Term | 0 | 0 |
Loans | 209,765 | 128,748 |
Loans | 209,765 | 128,748 |
Commercial Real Estate Portfolio Segment | Construction & land development | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 640 | 0 |
2020/2019 | 0 | 373 |
2019/2018 | 521 | 660 |
2018/2017 | 919 | 545 |
2017/2016 | 0 | 0 |
Prior | 119 | 23 |
Revolving | 0 | 455 |
Revolving to Term | 0 | 0 |
Loans | 2,199 | 2,056 |
Loans | 2,199 | 2,056 |
Commercial Real Estate Portfolio Segment | Construction & land development | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 0 | 0 |
2017/2016 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 0 | 0 |
Loans | 0 | 0 |
Commercial Real Estate Portfolio Segment | Construction & land development | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 0 | 0 |
2017/2016 | 17 | 0 |
Prior | 1,054 | 479 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 1,071 | 479 |
Loans | 1,071 | 479 |
Residential | Residential first mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 256,795 | 146,744 |
2020/2019 | 153,461 | 65,375 |
2019/2018 | 172,359 | 42,830 |
2018/2017 | 22,793 | 41,517 |
2017/2016 | 20,220 | 41,647 |
Prior | 86,511 | 105,750 |
Revolving | 1,840 | 287 |
Revolving to Term | 4 | 5 |
Loans | 713,983 | 444,155 |
Loans | 713,983 | 444,155 |
Residential | Residential first mortgage | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 256,082 | 146,744 |
2020/2019 | 152,932 | 64,013 |
2019/2018 | 168,705 | 40,388 |
2018/2017 | 22,568 | 41,245 |
2017/2016 | 20,147 | 41,274 |
Prior | 82,479 | 103,094 |
Revolving | 1,840 | 287 |
Revolving to Term | 4 | 5 |
Loans | 704,757 | 437,050 |
Loans | 704,757 | 437,050 |
Residential | Residential first mortgage | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 713 | 0 |
2020/2019 | 529 | 925 |
2019/2018 | 3,094 | 2,245 |
2018/2017 | 0 | 256 |
2017/2016 | 0 | 364 |
Prior | 1,508 | 1,714 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 5,844 | 5,504 |
Loans | 5,844 | 5,504 |
Residential | Residential first mortgage | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 0 | 0 |
2017/2016 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 0 | 0 |
Loans | 0 | 0 |
Residential | Residential first mortgage | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 437 |
2019/2018 | 560 | 197 |
2018/2017 | 225 | 16 |
2017/2016 | 73 | 9 |
Prior | 2,524 | 942 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 3,382 | 1,601 |
Loans | 3,382 | 1,601 |
Residential | Residential junior mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 3,194 | 4,936 |
2020/2019 | 3,139 | 4,338 |
2019/2018 | 3,222 | 3,663 |
2018/2017 | 1,501 | 1,087 |
2017/2016 | 535 | 869 |
Prior | 2,013 | 3,395 |
Revolving | 116,394 | 91,941 |
Revolving to Term | 1,426 | 1,648 |
Loans | 131,424 | 111,877 |
Loans | 131,424 | 111,877 |
Residential | Residential junior mortgage | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 3,194 | 4,936 |
2020/2019 | 3,139 | 4,338 |
2019/2018 | 3,021 | 3,663 |
2018/2017 | 1,501 | 1,060 |
2017/2016 | 512 | 869 |
Prior | 1,969 | 3,131 |
Revolving | 115,817 | 91,816 |
Revolving to Term | 1,426 | 1,648 |
Loans | 130,579 | 111,461 |
Loans | 130,579 | 111,461 |
Residential | Residential junior mortgage | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 29 | 0 |
2018/2017 | 0 | 0 |
2017/2016 | 0 | 0 |
Prior | 0 | 32 |
Revolving | 439 | 0 |
Revolving to Term | 0 | 0 |
Loans | 468 | 32 |
Loans | 468 | 32 |
Residential | Residential junior mortgage | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 0 | 0 |
2017/2016 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 0 | 0 |
Loans | 0 | 0 |
Residential | Residential junior mortgage | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 172 | 0 |
2018/2017 | 0 | 27 |
2017/2016 | 23 | 0 |
Prior | 44 | 232 |
Revolving | 138 | 125 |
Revolving to Term | 0 | 0 |
Loans | 377 | 384 |
Loans | 377 | 384 |
Residential | Residential construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 58,352 | 31,687 |
2020/2019 | 9,998 | 9,185 |
2019/2018 | 207 | 395 |
2018/2017 | 344 | 176 |
2017/2016 | 1,072 | 0 |
Prior | 380 | 264 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 70,353 | 41,707 |
Loans | 70,353 | 41,707 |
Residential | Residential construction | Grades 1-4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 58,352 | 31,687 |
2020/2019 | 9,998 | 9,185 |
2019/2018 | 155 | 395 |
2018/2017 | 344 | 121 |
2017/2016 | 1,072 | 0 |
Prior | 380 | 264 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 70,301 | 41,652 |
Loans | 70,301 | 41,652 |
Residential | Residential construction | Grade 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 52 | 0 |
2018/2017 | 0 | 55 |
2017/2016 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 52 | 55 |
Loans | 52 | 55 |
Residential | Residential construction | Grade 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 0 | 0 |
2017/2016 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 0 | 0 |
Loans | 0 | 0 |
Residential | Residential construction | Grade 7 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
2018/2017 | 0 | 0 |
2017/2016 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Loans | 0 | 0 |
Loans | $ 0 | $ 0 |
LOANS, ALLOWANCE FOR CREDIT _11
LOANS, ALLOWANCE FOR CREDIT LOSSES - LOANS, AND CREDIT QUALITY - Trouble Debt Restructuring (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | $ 25,686 | $ 5,473 |
Number of Loans | loan | 44 | 11 |
Pre-Modification Balance | $ 26,890 | $ 6,482 |
Current Balance | 25,686 | 5,473 |
Performing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 5,443 | 2,120 |
Nonaccrual | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 20,243 | 3,353 |
Commercial Portfolio Segment | Commercial & industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | $ 197 | $ 0 |
Number of Loans | loan | 2 | 0 |
Pre-Modification Balance | $ 200 | $ 0 |
Current Balance | 197 | 0 |
Commercial Portfolio Segment | Commercial & industrial | Performing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 0 | 0 |
Commercial Portfolio Segment | Commercial & industrial | Nonaccrual | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 197 | 0 |
Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | $ 6,354 | $ 3,635 |
Number of Loans | loan | 6 | 4 |
Pre-Modification Balance | $ 6,913 | $ 4,075 |
Current Balance | 6,354 | 3,635 |
Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | Performing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 3,466 | 2,120 |
Commercial Portfolio Segment | Owner-occupied commercial real estate (“CRE”) | Nonaccrual | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 2,888 | 1,515 |
Commercial Portfolio Segment | Agricultural | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | $ 16,835 | $ 1,283 |
Number of Loans | loan | 31 | 4 |
Pre-Modification Balance | $ 17,228 | $ 1,461 |
Current Balance | 16,835 | 1,283 |
Commercial Portfolio Segment | Agricultural | Performing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 0 | 0 |
Commercial Portfolio Segment | Agricultural | Nonaccrual | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 16,835 | 1,283 |
Commercial Real Estate Portfolio Segment | CRE investment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | $ 918 | $ 14 |
Number of Loans | loan | 1 | 1 |
Pre-Modification Balance | $ 919 | $ 180 |
Current Balance | 918 | 14 |
Commercial Real Estate Portfolio Segment | CRE investment | Performing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 918 | 0 |
Commercial Real Estate Portfolio Segment | CRE investment | Nonaccrual | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 0 | 14 |
Commercial Real Estate Portfolio Segment | Construction & land development | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | $ 308 | $ 308 |
Number of Loans | loan | 1 | 1 |
Pre-Modification Balance | $ 533 | $ 533 |
Current Balance | 308 | 308 |
Commercial Real Estate Portfolio Segment | Construction & land development | Performing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 0 | 0 |
Commercial Real Estate Portfolio Segment | Construction & land development | Nonaccrual | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 308 | 308 |
Residential | Residential first mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | $ 928 | $ 233 |
Number of Loans | loan | 2 | 1 |
Pre-Modification Balance | $ 931 | $ 233 |
Current Balance | 928 | 233 |
Residential | Residential first mortgage | Performing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 913 | 0 |
Residential | Residential first mortgage | Nonaccrual | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 15 | 233 |
Residential | Residential junior mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | $ 146 | $ 0 |
Number of Loans | loan | 1 | 0 |
Pre-Modification Balance | $ 166 | $ 0 |
Current Balance | 146 | 0 |
Residential | Residential junior mortgage | Performing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | 146 | 0 |
Residential | Residential junior mortgage | Nonaccrual | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructurings | $ 0 | $ 0 |
PREMISES AND EQUIPMENT - Summar
PREMISES AND EQUIPMENT - Summary of premises and equipment, less accumulated depreciation (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 131,711 | $ 92,365 |
Less accumulated depreciation and amortization | 37,145 | 32,421 |
Premises and equipment, net | 94,566 | 59,944 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 10,806 | 6,344 |
Land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 3,896 | 3,950 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 79,754 | 54,989 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 6,514 | 4,381 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 30,741 | $ 22,701 |
PREMISES AND EQUIPMENT - Narrat
PREMISES AND EQUIPMENT - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)branch | Dec. 31, 2020USD ($)branch | Dec. 31, 2019USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 5,000 | $ 4,400 | $ 3,800 |
Rent expense | $ 1,300 | $ 1,000 | 1,200 |
Number of branches closed | branch | 15 | 8 | |
Number of branches closed, owned locations | branch | 5 | ||
Number of branches closed, leased locations | branch | 3 | ||
Accelerated depreciation | $ 900 | $ 500 | |
Lease termination charge | 1,000 | (700) | |
Write-down upon transfer to OREO | $ 28 | $ 1,040 | $ 300 |
Mackinac Financial Corporation | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches closed | branch | 10 | ||
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Renewal term on operating leases | 5 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Renewal term on operating leases | 10 years | ||
Land and Building | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Remaining lease term on operating leases | 1 year | ||
Land and Building | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Remaining lease term on operating leases | 10 years |
PREMISES AND EQUIPMENT - Other
PREMISES AND EQUIPMENT - Other Information Related To Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Operating lease cost | $ 1,018 | $ 834 | $ 970 |
Variable lease cost | 234 | 169 | 233 |
Net lease cost | $ 1,252 | $ 1,003 | $ 1,203 |
Weighted average remaining lease term (years) | 6 years 3 months 18 days | 5 years 1 month 6 days | 4 years 3 months 18 days |
Weighted average discount rate | 1.50% | 2.00% | 2.50% |
PREMISES AND EQUIPMENT - Minimu
PREMISES AND EQUIPMENT - Minimum annual rentals under these noncancelable agreements with remaining terms in excess of one year (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Property, Plant and Equipment [Abstract] | |
2022 | $ 2,033 |
2023 | 1,595 |
2024 | 1,350 |
2025 | 1,012 |
2026 | 1,024 |
Thereafter | 2,442 |
Total future minimum lease payments | 9,456 |
Less: amount representing interest | (143) |
Present value of net future minimum lease payments | $ 9,313 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLES AND SERVICING RIGHTS - Summary of Goodwill and Other Intangibles (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 317,189 | $ 163,151 | $ 151,198 |
Other intangibles | 22,303 | 12,202 | |
Goodwill and other intangibles, net | 339,492 | 175,353 | |
Core deposit intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangibles | 19,445 | 8,837 | |
Customer list intangibles: | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangibles | $ 2,858 | $ 3,365 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLES AND SERVICING RIGHTS - Goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill: | |||
Goodwill at beginning of year | $ 163,151,000 | $ 151,198,000 | |
Acquisitions | 154,038,000 | 11,953,000 | |
Impairment | 0 | 0 | $ (800,000) |
Goodwill at end of year | $ 317,189,000 | $ 163,151,000 | $ 151,198,000 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLES AND SERVICING RIGHTS - Other Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Net book value | $ 22,303 | $ 12,202 | |
Amortization during the period | 3,494 | 3,567 | $ 3,872 |
Core deposit intangibles: | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 41,360 | 31,715 | |
Accumulated Amortization | (21,915) | (22,878) | |
Net book value | 19,445 | 8,837 | |
Additions during the period | 13,595 | 1,000 | |
Amortization during the period | 2,987 | 3,060 | |
Fully amortized intangible assets removed | 4,000 | ||
Customer list intangibles: | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 5,523 | 5,523 | |
Accumulated Amortization | (2,665) | (2,158) | |
Net book value | 2,858 | 3,365 | |
Amortization during the period | $ 507 | $ 507 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLES AND SERVICING RIGHTS - Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
MSR asset | ||
MSR asset: | ||
MSR asset at beginning of year | $ 10,230 | $ 5,919 |
Capitalized MSR | 4,329 | 5,256 |
MSR asset acquired | 1,322 | 529 |
Amortization during the period | (2,245) | (1,474) |
MSR asset at end of year | 13,636 | 10,230 |
Valuation allowance: | ||
Valuation allowance at beginning of year | (1,000) | 0 |
Additions | (500) | (1,000) |
Reversals | 300 | 0 |
Valuation allowance at end of year | (1,200) | (1,000) |
MSR asset, net | 12,436 | 9,230 |
Fair value of MSR asset at end of period | 15,599 | 9,276 |
Residential mortgage loans serviced for others | $ 1,583,577 | $ 1,250,206 |
Net book value of MSR asset to loans serviced for others | 0.79% | 0.74% |
LSR asset | ||
MSR asset: | ||
MSR asset at end of year | $ 20,000 | |
Valuation allowance: | ||
Residential mortgage loans serviced for others | $ 794,000 |
GOODWILL AND OTHER INTANGIBLE_7
GOODWILL AND OTHER INTANGIBLES AND SERVICING RIGHTS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
MSR asset | |||
Servicing Assets at Fair Value [Line Items] | |||
Valuation allowance recorded | $ 500 | $ 1,000 | |
Servicing asset | 13,636 | 10,230 | $ 5,919 |
Loans serviced for others | 1,583,577 | $ 1,250,206 | |
LSR asset | |||
Servicing Assets at Fair Value [Line Items] | |||
Servicing asset | 20,000 | ||
Loans serviced for others | $ 794,000 |
GOODWILL AND OTHER INTANGIBLE_8
GOODWILL AND OTHER INTANGIBLES AND SERVICING RIGHTS - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Core Deposit and Customer List Intangibles | ||
Net book value | $ 22,303 | $ 12,202 |
Core deposit intangibles | ||
Core Deposit and Customer List Intangibles | ||
2022 | 4,817 | |
2023 | 3,910 | |
2024 | 3,135 | |
2025 | 2,385 | |
2026 | 1,659 | |
Thereafter | 3,539 | |
Net book value | 19,445 | 8,837 |
Customer list intangibles: | ||
Core Deposit and Customer List Intangibles | ||
2022 | 507 | |
2023 | 483 | |
2024 | 449 | |
2025 | 449 | |
2026 | 249 | |
Thereafter | 721 | |
Net book value | 2,858 | $ 3,365 |
MSR asset | ||
Core Deposit and Customer List Intangibles | ||
2022 | 2,388 | |
2023 | 2,502 | |
2024 | 2,395 | |
2025 | 1,568 | |
2026 | 1,204 | |
Thereafter | 3,579 | |
Net book value | 13,636 | |
LSR asset | ||
Core Deposit and Customer List Intangibles | ||
2022 | 9,017 | |
2023 | 6,345 | |
2024 | 3,673 | |
2025 | 1,020 | |
2026 | 0 | |
Thereafter | 0 | |
Net book value | $ 20,055 |
OTHER REAL ESTATE OWNED - Summa
OTHER REAL ESTATE OWNED - Summary of other real estate owned net of valuation allowances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Real Estate [Roll Forward] | |||
Balance at beginning of period | $ 3,608 | $ 1,000 | |
Transfer in loans at net realizable value | 334 | 0 | |
Transfer in former bank branch properties at net realizable value | 7,843 | 3,648 | |
Sales proceeds | (2,743) | (157) | |
Net gain from sales | 597 | 157 | $ (88) |
Write-downs | (28) | (1,040) | |
Acquired balance, net | 2,344 | 0 | |
Balance at end of period | $ 11,955 | $ 3,608 | $ 1,000 |
DEPOSITS - Maturities of time d
DEPOSITS - Maturities of time deposits (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Deposits [Abstract] | |
2022 | $ 534,767 |
2023 | 202,608 |
2024 | 71,347 |
2025 | 31,784 |
2026 | 10,492 |
Thereafter | 1,192 |
Total time deposits | $ 852,190 |
DEPOSITS - Narrative (Details)
DEPOSITS - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deposits [Abstract] | ||
Aggregate amount of time deposits with minimum denomination of $250,000 | $ 113 | $ 48 |
Brokered deposits | $ 444 | $ 325 |
SHORT AND LONG-TERM BORROWING_2
SHORT AND LONG-TERM BORROWINGS - Narrative (Details) - USD ($) | 24 Months Ended | 48 Months Ended | 60 Months Ended | |||
Dec. 31, 2028 | Dec. 31, 2030 | Jul. 31, 2031 | Dec. 31, 2021 | Jul. 31, 2021 | Dec. 31, 2020 | |
Debt Type [Line Items] | ||||||
Short-term borrowings | $ 0 | $ 0 | ||||
Trust preferred securities qualify as Tier 1 capital | $ 37,000,000 | $ 24,000,000 | ||||
FHLB advances | ||||||
Debt Type [Line Items] | ||||||
Weighted average rate of FHLB advances | 0.59% | 0.73% | ||||
FHLB advances collateralized pledged | $ 522,000,000 | $ 273,000,000 | ||||
Subordinated Notes | ||||||
Debt Type [Line Items] | ||||||
Aggregate amount of subordinated notes | 152,400,000 | $ 100,000,000 | ||||
Subordinated Notes | Subordinated Notes Due 2031 | ||||||
Debt Type [Line Items] | ||||||
Aggregate amount of subordinated notes | 100,000,000 | |||||
Stated interest rate | 3.125% | |||||
Subordinated Notes | County Subordinated Notes Due 2028 | ||||||
Debt Type [Line Items] | ||||||
Aggregate amount of subordinated notes | $ 30,000,000 | |||||
Stated interest rate | 5.875% | |||||
Subordinated Notes | County Subordinated Notes Due 2030 | ||||||
Debt Type [Line Items] | ||||||
Aggregate amount of subordinated notes | $ 22,400,000 | |||||
Stated interest rate | 7.00% | |||||
Subordinated Notes | LIBOR | County Subordinated Notes Due 2028 | Forecast | ||||||
Debt Type [Line Items] | ||||||
Basis spread rate | 2.88% | |||||
Subordinated Notes | Secured Overnight Financing Rate (SOFR) | Subordinated Notes Due 2031 | Forecast | ||||||
Debt Type [Line Items] | ||||||
Basis spread rate | 0.2375% | |||||
Subordinated Notes | Secured Overnight Financing Rate (SOFR) | County Subordinated Notes Due 2028 | Forecast | ||||||
Debt Type [Line Items] | ||||||
Basis spread rate | 0.6875% |
SHORT AND LONG-TERM BORROWING_3
SHORT AND LONG-TERM BORROWINGS - Long-term borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 216,915 | $ 53,869 |
FHLB advances | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 25,000 | 29,000 |
Junior subordinated debentures | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 38,885 | 24,869 |
Subordinated notes | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 153,030 | $ 0 |
SHORT AND LONG-TERM BORROWING_4
SHORT AND LONG-TERM BORROWINGS - Summary of maturity of notes payable (Details) - FHLB advances $ in Thousands | Dec. 31, 2021USD ($) |
Debt Instrument [Line Items] | |
2022 | $ 10,000 |
2023 | 0 |
2024 | 0 |
2025 | 5,000 |
2026 | 0 |
Thereafter | 10,000 |
Advances from Federal Home Loan Banks | $ 25,000 |
SHORT AND LONG-TERM BORROWING_5
SHORT AND LONG-TERM BORROWINGS - Junior Subordinated and Subordinated Debentures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Jul. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Carrying Value | $ 216,915 | $ 53,869 | |
Mid-Wisconsin Financial Services, Inc. | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread rate | 1.43% | ||
Junior subordinated debentures | |||
Debt Instrument [Line Items] | |||
Par | $ 48,045 | ||
Unamortized Premium (Discount)/Debt Issue Costs | (9,160) | ||
Carrying Value | 38,885 | 24,869 | |
Junior subordinated debentures | Mid-Wisconsin Financial Services, Inc. | |||
Debt Instrument [Line Items] | |||
Par | 10,310 | ||
Unamortized Premium (Discount)/Debt Issue Costs | (2,773) | ||
Carrying Value | $ 7,537 | $ 7,338 | |
Effective interest rate | 1.63% | 1.65% | |
Junior subordinated debentures | Baylake Corp. | |||
Debt Instrument [Line Items] | |||
Par | $ 16,598 | ||
Unamortized Premium (Discount)/Debt Issue Costs | (3,411) | ||
Carrying Value | $ 13,187 | $ 12,951 | |
Effective interest rate | 1.57% | 1.59% | |
Junior subordinated debentures | Baylake Corp. | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread rate | 1.35% | ||
Junior subordinated debentures | First Menasha Bancshares, Inc. | |||
Debt Instrument [Line Items] | |||
Par | $ 5,155 | ||
Unamortized Premium (Discount)/Debt Issue Costs | (531) | ||
Carrying Value | $ 4,624 | $ 4,580 | |
Effective interest rate | 3.01% | 3.02% | |
Junior subordinated debentures | First Menasha Bancshares, Inc. | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread rate | 2.79% | ||
Junior subordinated debentures | County Bancorp Statutory Trust II | |||
Debt Instrument [Line Items] | |||
Par | $ 6,186 | ||
Unamortized Premium (Discount)/Debt Issue Costs | (1,125) | ||
Carrying Value | $ 5,061 | $ 0 | |
Effective interest rate | 1.73% | 0.00% | |
Junior subordinated debentures | County Bancorp Statutory Trust II | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread rate | 1.53% | ||
Junior subordinated debentures | County Bancorp Statutory Trust III | |||
Debt Instrument [Line Items] | |||
Par | $ 6,186 | ||
Unamortized Premium (Discount)/Debt Issue Costs | (1,065) | ||
Carrying Value | $ 5,121 | $ 0 | |
Effective interest rate | 1.89% | 0.00% | |
Junior subordinated debentures | County Bancorp Statutory Trust III | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread rate | 1.69% | ||
Junior subordinated debentures | Fox River Valley Capital Trust | |||
Debt Instrument [Line Items] | |||
Par | $ 3,610 | ||
Unamortized Premium (Discount)/Debt Issue Costs | (255) | ||
Carrying Value | $ 3,355 | $ 0 | |
Effective interest rate | 6.40% | 0.00% | |
Junior subordinated debentures | Fox River Valley Capital Trust | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread rate | 3.40% | ||
Subordinated notes | |||
Debt Instrument [Line Items] | |||
Par | $ 152,400 | $ 100,000 | |
Unamortized Premium (Discount)/Debt Issue Costs | 630 | ||
Carrying Value | 153,030 | $ 0 | |
Subordinated notes | Subordinated Notes Due 2031 | |||
Debt Instrument [Line Items] | |||
Par | 100,000 | ||
Unamortized Premium (Discount)/Debt Issue Costs | (943) | ||
Carrying Value | $ 99,057 | $ 0 | |
Stated interest rate | 3.125% | ||
Effective interest rate | 3.13% | 0.00% | |
Subordinated notes | County Subordinated Notes Due 2028 | |||
Debt Instrument [Line Items] | |||
Par | $ 30,000 | ||
Unamortized Premium (Discount)/Debt Issue Costs | 402 | ||
Carrying Value | $ 30,402 | $ 0 | |
Stated interest rate | 5.875% | ||
Effective interest rate | 5.88% | 0.00% | |
Subordinated notes | County Subordinated Notes Due 2030 | |||
Debt Instrument [Line Items] | |||
Par | $ 22,400 | ||
Unamortized Premium (Discount)/Debt Issue Costs | 1,171 | ||
Carrying Value | $ 23,571 | $ 0 | |
Stated interest rate | 7.00% | ||
Effective interest rate | 7.00% | 0.00% |
EMPLOYEE AND DIRECTOR BENEFIT_2
EMPLOYEE AND DIRECTOR BENEFIT PLANS - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)planshares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Number of deferred compensation plans | plan | 2 | ||
Employee percentage contribution | 100.00% | ||
Employer contribution matching percentage | 100.00% | ||
Percentage of employee's gross pay | 6.00% | ||
Vesting period | 5 years | ||
Company 401k expense | $ 2,500,000 | $ 2,200,000 | $ 2,900,000 |
Profit sharing contribution | 500,000 | 500,000 | $ 1,100,000 |
Deferred compensation plan | Key Management Employees | Other liabilities | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Liability for cumulative employee contributions and earnings | 2,000,000 | 1,500,000 | |
Non elective contributions to selected recipients | $ 5,700,000 | $ 1,400,000 | |
Deferred compensation plan | Director | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Maximum percentage to defer the compensation under the plan | 100.00% | ||
Shares purchased under deferred compensation plan (in shares) | shares | 1,018 | 2,561 | |
Value of shares purchased under deferred compensation plan | $ 73,000 | $ 149,000 | |
Value of shares distributed under director plan | $ 366,000 | $ 20,157 | |
Shares distributed under director plan (in shares) | shares | 4,737 | 282 | |
Deferred compensation liability offsetting equity component | $ 1,100,000 | $ 1,200,000 | |
Deferred compensation liability offsetting equity component (in shares) | shares | 27,762 | 31,481 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period of options | 10 years | ||
Stock based compensation expense | $ 6.6 | $ 5.3 | $ 4.8 |
Unrecognized compensation cost | $ 16.7 | ||
Remaining vesting period over which cost expected to be recognized | 4 years | ||
Stock based compensation tax benefit | $ 0.6 | 0.8 | 2.3 |
2011 Long Term Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares initially covered under the plan (in shares) | 3,000,000 | ||
Number of shares were available for grant (in shares) | 900,000 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total intrinsic value of options exercised | $ 2.2 | 2.5 | 13.9 |
Director | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ 0.8 | $ 0.4 | $ 0.3 |
Restricted stock grants (in shares) | 9,875 | 7,950 | 4,257 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of weighted average assumptions for valuing stock option grants (Details) - Stock Incentive Plan - Stock Options - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 30.00% | 25.00% | 25.00% |
Risk-free interest rate | 1.19% | 1.35% | 1.75% |
Expected average life | 7 years | 7 years | 7 years |
Weighted average per share fair value of options (in dollars per share) | $ 26.33 | $ 20.55 | $ 21.30 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock option activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock Options | |||
Aggregate Intrinsic Value (in thousands) | |||
Shares surrendered to satisfy exercise price and/or tax withholding requirements (in shares) | 10,354 | 18,952 | 142,752 |
Stock Incentive Plan | |||
Option Shares Outstanding | |||
Outstanding, beginning of period (in shares) | 1,437,460 | 1,443,733 | 1,581,699 |
Granted (in shares) | 450,000 | 54,500 | 203,000 |
Exercise of stock options (in shares) | (53,214) | (60,773) | (337,428) |
Forfeited (in shares) | (1,000) | 0 | (3,538) |
Outstanding, end of period (in shares) | 1,833,246 | 1,437,460 | 1,443,733 |
Exercisable (in shares) | 1,025,846 | ||
Weighted Average Exercise Price | |||
Outstanding, beginning of period (in dollars per share) | $ 50.47 | $ 48.75 | $ 40.77 |
Granted (in dollars per share) | 77.99 | 69.44 | 69.69 |
Exercise of stock options (in dollars per share) | 34.40 | 26.51 | 24.15 |
Forfeited (in dollars per share) | 48.85 | 0 | 27.43 |
Outstanding, end of period (in dollars per share) | 57.69 | $ 50.47 | $ 48.75 |
Exercisable (in dollars per share) | $ 48.30 | ||
Weighted Average Remaining Life (Years) | |||
Outstanding | 6 years 7 months 6 days | 6 years 7 months 6 days | 7 years 4 months 24 days |
Exercisable | 5 years 4 months 24 days | ||
Aggregate Intrinsic Value (in thousands) | |||
Outstanding | $ 51,426 | $ 23,840 | $ 36,428 |
Exercisable | $ 38,410 |
STOCK-BASED COMPENSATION - Sche
STOCK-BASED COMPENSATION - Schedule of options outstanding (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Shares Outstanding (in shares) | shares | 1,833,246 |
Number of Shares Exercisable (in shares) | shares | 1,025,846 |
Weighted Average Exercise Price Outstanding (in dollars per share) | $ 57.69 |
Weighted Average Exercise Price Exercisable (in dollars per share) | $ 48.30 |
Weighted Average Remaining Life (Years) Outstanding | 6 years 7 months 6 days |
Weighted Average Remaining Life (Years) Exercisable | 5 years 4 months 24 days |
Exercise Price $16.50 - $40.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Shares Outstanding (in shares) | shares | 190,496 |
Number of Shares Exercisable (in shares) | shares | 190,496 |
Weighted Average Exercise Price Outstanding (in dollars per share) | $ 31.51 |
Weighted Average Exercise Price Exercisable (in dollars per share) | $ 31.51 |
Weighted Average Remaining Life (Years) Outstanding | 3 years 8 months 12 days |
Weighted Average Remaining Life (Years) Exercisable | 3 years 8 months 12 days |
Exercise Price $40.01 - $50.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Shares Outstanding (in shares) | shares | 791,750 |
Number of Shares Exercisable (in shares) | shares | 632,950 |
Weighted Average Exercise Price Outstanding (in dollars per share) | $ 48.86 |
Weighted Average Exercise Price Exercisable (in dollars per share) | $ 48.86 |
Weighted Average Remaining Life (Years) Outstanding | 5 years 3 months 18 days |
Weighted Average Remaining Life (Years) Exercisable | 5 years 3 months 18 days |
Exercise Price $50.01 - $60.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Shares Outstanding (in shares) | shares | 153,500 |
Number of Shares Exercisable (in shares) | shares | 113,300 |
Weighted Average Exercise Price Outstanding (in dollars per share) | $ 56.17 |
Weighted Average Exercise Price Exercisable (in dollars per share) | $ 56.27 |
Weighted Average Remaining Life (Years) Outstanding | 6 years |
Weighted Average Remaining Life (Years) Exercisable | 5 years 10 months 24 days |
Exercise Price $60.01 - $70.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Shares Outstanding (in shares) | shares | 20,000 |
Number of Shares Exercisable (in shares) | shares | 6,000 |
Weighted Average Exercise Price Outstanding (in dollars per share) | $ 63.61 |
Weighted Average Exercise Price Exercisable (in dollars per share) | $ 62.64 |
Weighted Average Remaining Life (Years) Outstanding | 8 years 2 months 12 days |
Weighted Average Remaining Life (Years) Exercisable | 7 years 10 months 24 days |
Exercise Price $70.01- $84.73 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Shares Outstanding (in shares) | shares | 677,500 |
Number of Shares Exercisable (in shares) | shares | 83,100 |
Weighted Average Exercise Price Outstanding (in dollars per share) | $ 75.55 |
Weighted Average Exercise Price Exercisable (in dollars per share) | $ 70.63 |
Weighted Average Remaining Life (Years) Outstanding | 8 years 10 months 24 days |
Weighted Average Remaining Life (Years) Exercisable | 7 years 10 months 24 days |
Minimum | Exercise Price $16.50 - $40.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted Average Exercise Price Outstanding (in dollars per share) | $ 16.50 |
Weighted Average Exercise Price Exercisable (in dollars per share) | 16.50 |
Minimum | Exercise Price $40.01 - $50.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted Average Exercise Price Outstanding (in dollars per share) | 40.01 |
Weighted Average Exercise Price Exercisable (in dollars per share) | 40.01 |
Minimum | Exercise Price $50.01 - $60.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted Average Exercise Price Outstanding (in dollars per share) | 50.01 |
Weighted Average Exercise Price Exercisable (in dollars per share) | 50.01 |
Minimum | Exercise Price $60.01 - $70.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted Average Exercise Price Outstanding (in dollars per share) | 60.01 |
Weighted Average Exercise Price Exercisable (in dollars per share) | 60.01 |
Minimum | Exercise Price $70.01- $84.73 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted Average Exercise Price Outstanding (in dollars per share) | 70.01 |
Weighted Average Exercise Price Exercisable (in dollars per share) | 70.01 |
Maximum | Exercise Price $16.50 - $40.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted Average Exercise Price Outstanding (in dollars per share) | 40 |
Weighted Average Exercise Price Exercisable (in dollars per share) | 40 |
Maximum | Exercise Price $40.01 - $50.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted Average Exercise Price Outstanding (in dollars per share) | 50 |
Weighted Average Exercise Price Exercisable (in dollars per share) | 50 |
Maximum | Exercise Price $50.01 - $60.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted Average Exercise Price Outstanding (in dollars per share) | 60 |
Weighted Average Exercise Price Exercisable (in dollars per share) | 60 |
Maximum | Exercise Price $60.01 - $70.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted Average Exercise Price Outstanding (in dollars per share) | 70 |
Weighted Average Exercise Price Exercisable (in dollars per share) | 70 |
Maximum | Exercise Price $70.01- $84.73 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted Average Exercise Price Outstanding (in dollars per share) | 84.73 |
Weighted Average Exercise Price Exercisable (in dollars per share) | $ 84.73 |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted stock award activity (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted Average Grant Date Fair Value | |||
Shares surrendered to satisfy tax withholding requirements (in shares) | 3,215 | 4,733 | 4,688 |
Stock Incentive Plan | |||
Restricted Shares Outstanding | |||
Outstanding, beginning of period (in shares) | 18,925 | 22,521 | 29,512 |
Granted (in shares) | 33,153 | 19,672 | 12,498 |
Vested (in shares) | (25,831) | (23,268) | (19,081) |
Forfeited (in shares) | (446) | 0 | (408) |
Outstanding, end of period (in shares) | 25,801 | 18,925 | 22,521 |
Weighted Average Grant Date Fair Value | |||
Outstanding, beginning of period (in dollars per share) | $ 53.57 | $ 44.94 | $ 39.37 |
Granted (in dollars per share) | 75.83 | 60.29 | 67.59 |
Vested (in dollars per share) | 64.53 | 50.90 | 51.77 |
Forfeited (in dollars per share) | 41.44 | 0 | 16.50 |
Outstanding, end of period (in dollars per share) | $ 71.42 | $ 53.57 | $ 44.94 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 03, 2021 | Sep. 03, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Stock Transaction [Line Items] | |||||
Stock repurchased under plan | $ 62,583 | $ 42,088 | $ 28,460 | ||
Common Stock Repurchase Program | |||||
Stock Transaction [Line Items] | |||||
Stock repurchased under plan | $ 61,000 | ||||
Stock repurchased (in shares) | 793,000 | ||||
Weighted average price of share cancelled (in dollars per share) | $ 77.50 | ||||
Stock repurchase remaining authorized amount | $ 69,000 | ||||
Mackinac Financial Corporation | |||||
Stock Transaction [Line Items] | |||||
Number of common stock issued for consideration (in shares) | 2,337,230 | ||||
Common stock issued in acquisitions | $ 180,000 | ||||
Value of cash consideration | 49,000 | ||||
Costs incurred related to stock issuance | $ 400 | ||||
County Bancorp, Inc. | |||||
Stock Transaction [Line Items] | |||||
Number of common stock issued for consideration (in shares) | 2,366,243 | ||||
Common stock issued in acquisitions | $ 176,000 | ||||
Value of cash consideration | 48,000 | ||||
Costs incurred related to stock issuance | $ 400 |
INCOME TAXES - Current and defe
INCOME TAXES - Current and deferred amounts of income tax expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Current | $ 14,138 | $ 29,764 | $ 15,353 |
Deferred | 6,332 | (9,288) | 1,105 |
Income tax expense | $ 20,470 | $ 20,476 | $ 16,458 |
INCOME TAXES - Income tax recon
INCOME TAXES - Income tax reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Tax on pretax income, less noncontrolling interest, at statutory rates | $ 17,023 | $ 16,926 | $ 14,931 |
State income taxes, net of federal effect | 5,064 | 5,030 | 3,672 |
Tax-exempt interest income | (520) | (527) | (609) |
Non-deductible interest disallowance | 3 | 14 | 29 |
Increase in cash surrender value life insurance | (570) | (738) | (573) |
Non-deductible business entertainment | 119 | 170 | 189 |
Stock-based employee compensation | (618) | (839) | (2,347) |
Non-deductible compensation | 163 | 272 | 3,122 |
Sale of UFS | 0 | (109) | (2,176) |
Other, net | (194) | 277 | 220 |
Income tax expense | $ 20,470 | $ 20,476 | $ 16,458 |
INCOME TAXES - Net deferred tax
INCOME TAXES - Net deferred tax asset (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
ACL-Loans | $ 14,650 | $ 9,328 |
Net operating loss carryforwards | 3,800 | 1,692 |
Compensation | 9,194 | 5,822 |
Purchase of noncontrolling interest | 0 | 2,112 |
Other | 2,605 | 2,949 |
Other real estate | 1,364 | 538 |
Total deferred tax assets | 31,613 | 22,441 |
Deferred tax liabilities: | ||
Premises and equipment | (3,860) | (1,577) |
Prepaid expenses | (1,110) | (1,010) |
Investment securities | (1,678) | (451) |
Core deposit and other intangibles | (5,278) | (1,777) |
Purchase accounting adjustments to liabilities | (1,725) | (1,969) |
MSR and LSR assets | (8,726) | (2,269) |
Other | (2,462) | (282) |
Unrealized gain on securities AFS | (1,392) | (4,959) |
Total deferred tax liabilities | (26,231) | (14,294) |
Net deferred tax assets | $ 5,382 | $ 8,147 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Additional Tax information [Line Items] | ||
Valuation allowance | $ 0 | $ 0 |
Federal | ||
Additional Tax information [Line Items] | ||
Operating loss carryforwards | 18,800,000 | |
State | ||
Additional Tax information [Line Items] | ||
Operating loss carryforwards | $ 11,900,000 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Contract or notional amount of exposure to off-balance-sheet risk (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Contract and notional amounts of commitments | $ 1,433,881 | $ 950,287 |
Financial standby letters of credit | ||
Other Commitments [Line Items] | ||
Contract and notional amounts of commitments | 13,562 | 8,241 |
Performance standby letters of credit | ||
Other Commitments [Line Items] | ||
Contract and notional amounts of commitments | $ 7,336 | $ 8,366 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | ||
Derivative fair value, net | $ 0.1 | $ (0.2) |
Commercial-related commitments to extend credit | 80.00% | 78.00% |
Federal funds accommodations | $ 195 | $ 175 |
Interest Rate Lock Commitments | ||
Derivative [Line Items] | ||
Commitments to sell residential mortgage loans held for sale considered derivative instruments | 50 | 113 |
Forward Commitments | ||
Derivative [Line Items] | ||
Commitments to sell residential mortgage loans held for sale considered derivative instruments | $ 1 | $ 20 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | 24 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2021USD ($)branch$ / sharesshares | Dec. 31, 2020USD ($)branch$ / sharesshares | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2021 | |
Related Party Transaction [Line Items] | ||||||
Related party loans, total | $ 113,000 | $ 113,000 | $ 89,000 | $ 89,000 | ||
Number of executives stock was repurchased from | branch | 1 | 2 | ||||
Purchase of noncontrolling interest | $ 8,000 | |||||
Nicolet Joint Ventures, LLC (the "JV") | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership percentage by noncontrolling owners | 50.00% | |||||
Noncontrolling interest, ownership percentage purchased | 50.00% | |||||
Purchase of noncontrolling interest | $ 8,000 | |||||
Chief Executive Officer | ||||||
Related Party Transaction [Line Items] | ||||||
Stock repurchased (in shares) | shares | 5,851 | |||||
Cumulative amount repurchased | $ 400 | |||||
Average cost per share (in dollars per share) | $ / shares | $ 71.45 | |||||
Director | ||||||
Related Party Transaction [Line Items] | ||||||
Stock repurchased (in shares) | shares | 2,193 | 5,852 | ||||
Cumulative amount repurchased | $ 200 | $ 400 | ||||
Average cost per share (in dollars per share) | $ / shares | $ 76.14 | $ 71.45 | ||||
Director | New branch location in facility opened in October 2013 | ||||||
Related Party Transaction [Line Items] | ||||||
Rent expense | $ 124 | $ 122 | $ 112 | |||
Director | 2019 branch reconstruction | ||||||
Related Party Transaction [Line Items] | ||||||
Payments for branch reconstruction | 900 | 400 | $ 1,300 | |||
Percentage payments for branch reconstruction paid to subcontractor | 75.00% | |||||
Nicolet Joint Ventures, LLC (the "JV") | Nicolet national bank | ||||||
Related Party Transaction [Line Items] | ||||||
Rent expense | $ 1,300 | $ 1,200 |
ASSETS GAINS (LOSSES), NET - Co
ASSETS GAINS (LOSSES), NET - Components of net gain (loss) on assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets Gains (Losses), Net [Abstract] | |||
Gains (losses) on sales of securities AFS, net | $ (283) | $ 395 | $ (22) |
Gains (losses) on equity securities, net | 3,445 | (987) | 1,115 |
Gains (losses) on sales of OREO, net | 597 | 157 | (88) |
Write-downs of OREO | (28) | (1,040) | (300) |
Write-down of other investment | 0 | (100) | (100) |
Gains (losses) on sales of other investments, net | 550 | 0 | 7,442 |
Gains (losses) on sales or dispositions of other assets, net | (100) | (230) | (150) |
Asset gains (losses), net | $ 4,181 | $ (1,805) | $ 7,897 |
REGULATORY CAPITAL REQUIREMEN_3
REGULATORY CAPITAL REQUIREMENTS - Company's and Bank's actual regulatory capital amounts and ratios (Details) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Allowable amount of dividends before regulatory approval required | $ 7,000 | |
Nicolet Bankshares, Inc | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total risk-based capital, Actual amount | $ 793,410 | $ 406,325 |
Total risk-based capital, Actual ratio | 0.138 | 0.129 |
Total risk-based capital, For capital adequacy purposes, Amount | $ 459,648 | $ 252,683 |
Total risk-based capital, For capital adequacy purposes, Ratio | 0.080 | 0.080 |
Tier I risk-based capital, Actual amount | $ 604,199 | $ 385,068 |
Tier I risk-based capital, Actual ratio | 0.105 | 0.122 |
Tier I risk-based capital, For capital adequacy purposes, Amount | $ 344,736 | $ 189,512 |
Tier I risk-based capital, For capital adequacy purposes, Ratio | 0.060 | 0.060 |
Common equity Tier I risk-based capital, For capital adequacy purposes, Ratio | 0.045 | 0.045 |
Common equity Tier 1 capital, Actual Amount | $ 567,095 | $ 361,162 |
Common equity Tier 1 capital, Actual Ratio | 0.099 | 0.114 |
Common equity Tier 1 capital, For Capital Adequacy Purposes, Amount | $ 258,552 | $ 142,134 |
Leverage, Actual amount | $ 604,199 | $ 385,068 |
Leverage, Actual ratio | 0.094 | 0.090 |
Leverage, For capital adequacy purposes, Amount | $ 256,990 | $ 170,402 |
Leverage, For capital adequacy purposes, Ratio | 0.040 | 0.040 |
Nicolet national bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total risk-based capital, Actual amount | $ 700,869 | $ 351,081 |
Total risk-based capital, Actual ratio | 0.122 | 0.112 |
Total risk-based capital, For capital adequacy purposes, Amount | $ 459,476 | $ 251,769 |
Total risk-based capital, For capital adequacy purposes, Ratio | 0.080 | 0.080 |
Total risk-based capital, To be well capitalized under prompt corrective action provisions, Amount | $ 574,345 | $ 314,711 |
Total risk-based capital, To be well capitalized under prompt corrective action provisions, Ratio | 0.100 | 0.100 |
Tier I risk-based capital, Actual amount | $ 664,688 | $ 329,824 |
Tier I risk-based capital, Actual ratio | 0.116 | 0.105 |
Tier I risk-based capital, For capital adequacy purposes, Amount | $ 344,607 | $ 188,826 |
Tier I risk-based capital, For capital adequacy purposes, Ratio | 0.060 | 0.060 |
Common equity Tier I risk-based capital, For capital adequacy purposes, Ratio | 0.045 | 0.045 |
Tier I risk-based capital, To be well capitalized under prompt corrective action provisions, Amount | $ 459,476 | $ 251,769 |
Tier I risk-based capital, To be well capitalized under prompt corrective action provisions, Ratio | 0.080 | 0.080 |
Common equity Tier 1 capital, Actual Amount | $ 664,688 | $ 329,824 |
Common equity Tier 1 capital, Actual Ratio | 0.116 | 0.105 |
Common equity Tier 1 capital, For Capital Adequacy Purposes, Amount | $ 258,455 | $ 141,620 |
Common equity Tier 1 capital, To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 373,324 | $ 204,562 |
Common equity Tier 1 capital, To be well capitalized under prompt corrective action provisions ratio, Ratio | 0.065 | 0.065 |
Leverage, Actual amount | $ 664,688 | $ 329,824 |
Leverage, Actual ratio | 0.103 | 0.078 |
Leverage, For capital adequacy purposes, Amount | $ 256,990 | $ 170,025 |
Leverage, For capital adequacy purposes, Ratio | 0.040 | 0.040 |
Leverage, To be well capitalized under prompt corrective action provisions, Amount | $ 321,237 | $ 212,532 |
Leverage, To be well capitalized under prompt corrective action provisions, Ratio | 0.050 | 0.050 |
FAIR VALUE MEASUREMENTS - Measu
FAIR VALUE MEASUREMENTS - Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | $ 921,661 | $ 539,337 |
Measured at Fair Value on a Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 921,661 | 539,337 |
Derivative assets | 1,064 | 1,801 |
Derivative liabilities | 1,064 | 1,801 |
Measured at Fair Value on a Recurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Measured at Fair Value on a Recurring Basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 913,596 | 536,207 |
Derivative assets | 1,064 | 1,801 |
Derivative liabilities | 1,064 | 1,801 |
Measured at Fair Value on a Recurring Basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 8,065 | 3,130 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 191,277 | 63,451 |
U.S. government agency securities | Measured at Fair Value on a Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 191,277 | 63,451 |
U.S. government agency securities | Measured at Fair Value on a Recurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
U.S. government agency securities | Measured at Fair Value on a Recurring Basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 191,277 | 63,451 |
U.S. government agency securities | Measured at Fair Value on a Recurring Basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 312,737 | 231,868 |
State, county and municipals | Measured at Fair Value on a Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 312,737 | 231,868 |
State, county and municipals | Measured at Fair Value on a Recurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
State, county and municipals | Measured at Fair Value on a Recurring Basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 310,316 | 231,868 |
State, county and municipals | Measured at Fair Value on a Recurring Basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 2,421 | 0 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 271,262 | 162,495 |
Mortgage-backed securities | Measured at Fair Value on a Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 271,262 | 162,495 |
Mortgage-backed securities | Measured at Fair Value on a Recurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Mortgage-backed securities | Measured at Fair Value on a Recurring Basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 270,260 | 162,495 |
Mortgage-backed securities | Measured at Fair Value on a Recurring Basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 1,002 | 0 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 146,385 | 81,523 |
Corporate debt securities | Measured at Fair Value on a Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 146,385 | 81,523 |
Corporate debt securities | Measured at Fair Value on a Recurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Corporate debt securities | Measured at Fair Value on a Recurring Basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 141,743 | 78,393 |
Corporate debt securities | Measured at Fair Value on a Recurring Basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 4,642 | 3,130 |
Equity securities | Measured at Fair Value on a Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments (equity securities) | 5,660 | 3,567 |
Equity securities | Measured at Fair Value on a Recurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments (equity securities) | 5,660 | 3,567 |
Equity securities | Measured at Fair Value on a Recurring Basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments (equity securities) | 0 | 0 |
Equity securities | Measured at Fair Value on a Recurring Basis | Level 3 | ||
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 (Details) - Level 3 - Measured at Fair Value on a Recurring Basis - Securities AFS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Level 3 Fair Value Measurements: | ||
Balance at beginning of year | $ 3,130 | $ 3,130 |
Acquired balances | 4,935 | 0 |
Paydowns/Sales/Settlements | 0 | 0 |
Balance at end of year | $ 8,065 | $ 3,130 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair value on a nonrecurring basis (Details) - Measured at Fair Value on a Nonrecurring Basis - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 36,230 | |
OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 11,955 | $ 3,608 |
MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 12,436 | 9,230 |
LSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 20,055 | |
Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 7,633 | |
Level 1 | Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | |
Level 1 | OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Level 1 | MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Level 1 | LSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | |
Level 1 | Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | |
Level 2 | Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | |
Level 2 | OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Level 2 | MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Level 2 | LSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | |
Level 2 | Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | |
Level 3 | Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 36,230 | |
Level 3 | OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 11,955 | 3,608 |
Level 3 | MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 12,436 | 9,230 |
Level 3 | LSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 20,055 | |
Level 3 | Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 7,633 |
FAIR VALUE MEASUREMENTS - Carry
FAIR VALUE MEASUREMENTS - Carrying amounts and estimated fair values of financial instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financial assets: | ||
Securities AFS | $ 921,661 | $ 539,337 |
Securities HTM | 648,394 | |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 595,292 | 802,859 |
Certificates of deposit in other banks | 21,920 | 29,521 |
Securities AFS | 921,661 | 539,337 |
Securities HTM | 651,803 | |
Other investments | 44,008 | 27,619 |
Loans held for sale | 6,447 | 21,450 |
Loans, net | 4,572,164 | 2,756,928 |
Accrued interest receivable | 15,277 | 9,869 |
Financial liabilities: | ||
Deposits | 6,465,916 | 3,910,399 |
Long-term borrowings | 216,915 | 53,869 |
Accrued interest payable | 3,078 | 799 |
Carrying Amount | MSR asset | ||
Financial assets: | ||
Servicing rights | 12,436 | 9,230 |
Carrying Amount | LSR asset | ||
Financial assets: | ||
Servicing rights | 20,055 | |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 595,292 | 802,859 |
Certificates of deposit in other banks | 22,236 | 31,053 |
Securities AFS | 921,661 | 539,337 |
Securities HTM | 648,394 | |
Other investments | 44,008 | 27,619 |
Loans held for sale | 6,616 | 22,329 |
Loans, net | 4,606,851 | 2,834,452 |
Accrued interest receivable | 15,277 | 9,869 |
Financial liabilities: | ||
Deposits | 6,463,064 | 3,917,121 |
Long-term borrowings | 216,092 | 53,859 |
Accrued interest payable | 3,078 | 799 |
Estimated Fair Value | MSR asset | ||
Financial assets: | ||
Servicing rights | 15,599 | 9,276 |
Estimated Fair Value | LSR asset | ||
Financial assets: | ||
Servicing rights | 20,055 | |
Level 1 | Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 595,292 | 802,859 |
Certificates of deposit in other banks | 0 | 0 |
Securities AFS | 0 | 0 |
Securities HTM | 0 | |
Other investments | 5,660 | 3,567 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 15,277 | 9,869 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Long-term borrowings | 0 | 0 |
Accrued interest payable | 3,078 | 799 |
Level 1 | Estimated Fair Value | MSR asset | ||
Financial assets: | ||
Servicing rights | 0 | 0 |
Level 1 | Estimated Fair Value | LSR asset | ||
Financial assets: | ||
Servicing rights | 0 | |
Level 2 | Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposit in other banks | 22,236 | 31,053 |
Securities AFS | 913,596 | 536,207 |
Securities HTM | 648,394 | |
Other investments | 32,110 | 20,155 |
Loans held for sale | 6,616 | 22,329 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Long-term borrowings | 25,097 | 29,488 |
Accrued interest payable | 0 | 0 |
Level 2 | Estimated Fair Value | MSR asset | ||
Financial assets: | ||
Servicing rights | 0 | 0 |
Level 2 | Estimated Fair Value | LSR asset | ||
Financial assets: | ||
Servicing rights | 0 | |
Level 3 | Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposit in other banks | 0 | 0 |
Securities AFS | 8,065 | 3,130 |
Securities HTM | 0 | |
Other investments | 6,238 | 3,897 |
Loans held for sale | 0 | 0 |
Loans, net | 4,606,851 | 2,834,452 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Deposits | 6,463,064 | 3,917,121 |
Long-term borrowings | 190,995 | 24,371 |
Accrued interest payable | 0 | 0 |
Level 3 | Estimated Fair Value | MSR asset | ||
Financial assets: | ||
Servicing rights | 15,599 | $ 9,276 |
Level 3 | Estimated Fair Value | LSR asset | ||
Financial assets: | ||
Servicing rights | $ 20,055 |
PARENT COMPANY ONLY FINANCIAL_3
PARENT COMPANY ONLY FINANCIAL INFORMATION - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from subsidiary | $ 209,349 | $ 88,460 |
Total assets | 7,695,037 | 4,551,789 |
Liabilities and Stockholders’ Equity | ||
Other liabilities | 68,729 | 48,332 |
Stockholders’ equity | 891,891 | 539,189 |
Total liabilities and stockholders’ equity | 7,695,037 | 4,551,789 |
Nicolet Bankshares, Inc | ||
Assets | ||
Cash and due from subsidiary | 84,656 | 49,998 |
Investments | 9,684 | 6,742 |
Investments in subsidiaries | 998,032 | 513,736 |
Other assets | 1,503 | 177 |
Total assets | 1,093,875 | 570,653 |
Liabilities and Stockholders’ Equity | ||
Junior subordinated debentures | 38,885 | 24,869 |
Subordinated notes | 153,030 | 0 |
Other liabilities | 10,069 | 6,595 |
Stockholders’ equity | 891,891 | 539,189 |
Total liabilities and stockholders’ equity | $ 1,093,875 | $ 570,653 |
PARENT COMPANY ONLY FINANCIAL_4
PARENT COMPANY ONLY FINANCIAL INFORMATION - Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Financial Statements, Captions [Line Items] | |||
Interest income | $ 171,559 | $ 149,202 | $ 138,588 |
Interest expense | 13,604 | 19,864 | 22,510 |
Net interest income | 157,955 | 129,338 | 116,078 |
Income tax benefit | (20,470) | (20,476) | (16,458) |
Net income | 60,652 | 60,469 | 54,988 |
Nicolet Bankshares, Inc | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest income | 18 | 39 | 55 |
Interest expense | 2,959 | 2,313 | 2,936 |
Net interest income | (2,941) | (2,274) | (2,881) |
Dividend income from subsidiaries | 65,000 | 60,215 | 50,363 |
Operating expense | (2,562) | (886) | (321) |
Gain (loss) on investments, net | 3,995 | (1,087) | 1,015 |
Income tax benefit | 437 | 1,102 | 506 |
Earnings before equity in undistributed income (loss) of subsidiaries | 63,929 | 57,070 | 48,682 |
Equity in undistributed income (loss) of subsidiaries | (3,277) | 3,052 | 5,959 |
Net income | $ 60,652 | $ 60,122 | $ 54,641 |
PARENT COMPANY ONLY FINANCIAL_5
PARENT COMPANY ONLY FINANCIAL INFORMATION - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flows From Operating Activities: | |||
Net income attributable to Nicolet Bankshares, Inc. | $ 60,652 | $ 60,469 | $ 54,988 |
Cash Flows From Investing Activities: | |||
Net cash paid in business combinations | 367,797 | (21,820) | 7,331 |
Cash Flows From Financing Activities: | |||
Purchase and retirement of common stock | (62,583) | (42,088) | (28,460) |
Proceeds from issuance of common stock, net | 2,382 | 2,055 | 8,742 |
Capitalized issuance costs, net | (789) | (163) | |
Repayments of long-term borrowings | (187,961) | (384,091) | (87,237) |
Nicolet Bankshares, Inc | |||
Cash Flows From Operating Activities: | |||
Net income attributable to Nicolet Bankshares, Inc. | 60,652 | 60,122 | 54,641 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Accretion of discounts on borrowings | 584 | 486 | 515 |
(Gain) loss on investments, net | (3,995) | 1,087 | (1,015) |
Change in other assets and liabilities, net | 1,013 | 1,786 | (421) |
Equity in undistributed (income) loss of subsidiaries, net of dividends | 3,277 | (3,052) | (5,959) |
Net cash provided by operating activities | 61,531 | 60,429 | 47,761 |
Cash Flows From Investing Activities: | |||
Proceeds from sale of investments | 4,105 | 185 | 0 |
Purchases of investments | (5,049) | (1,179) | (2,484) |
Net cash paid in business combinations | (63,892) | (21,644) | (412) |
Net cash used in investing activities | (64,836) | (22,638) | (2,896) |
Cash Flows From Financing Activities: | |||
Purchase and retirement of common stock | (62,583) | (42,088) | (28,460) |
Proceeds from issuance of common stock, net | 2,382 | 2,055 | 8,742 |
Capitalized issuance costs, net | (789) | 0 | 0 |
Repayments of long-term borrowings | 0 | (18,186) | 0 |
Proceeds from issuance of subordinated notes, net | 98,953 | 0 | 0 |
Net cash provided by (used in) financing activities | 37,963 | (58,219) | (19,718) |
Net increase (decrease) in cash and due from subsidiary | 34,658 | (20,428) | 25,147 |
Beginning cash and due from subsidiary | 49,998 | 70,426 | 45,279 |
Ending cash and due from subsidiary | $ 84,656 | $ 49,998 | $ 70,426 |
EARNINGS PER COMMON SHARE - Cal
EARNINGS PER COMMON SHARE - Calculations for basic and diluted earnings per common share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Net income attributable to Nicolet Bankshares, Inc. | $ 60,652 | $ 60,122 | $ 54,641 |
Weighted average common shares outstanding (in shares) | 10,735,605 | 10,337,138 | 9,561,978 |
Effect of dilutive common stock awards (in shares) | 409,000 | 204,000 | 338,000 |
Diluted weighted average common shares outstanding (in shares) | 11,144,866 | 10,541,251 | 9,900,319 |
Basic earnings per common share (in dollars per share) | $ 5.65 | $ 5.82 | $ 5.71 |
Diluted earnings per common share (in dollars per share) | $ 5.44 | $ 5.70 | $ 5.52 |
EARNINGS PER COMMON SHARE - Nar
EARNINGS PER COMMON SHARE - Narrative (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Shares excluded from calculation of earnings per common share (in shares) | 0.1 | 0.1 | 0.1 |
OTHER ASSETS AND OTHER LIABIL_2
OTHER ASSETS AND OTHER LIABILITIES HELD FOR SALE (Details) - Held-for-sale - Birmingham Sale $ in Millions | Dec. 31, 2021USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Loans | $ 199 |
Deposits | $ 51 |