ncbs-20220331000117485012/31false2022Q10.23750.687500011748502022-01-012022-03-3100011748502022-04-27xbrli:shares00011748502022-03-31iso4217:USD00011748502021-12-31iso4217:USDxbrli:shares00011748502021-01-012021-03-310001174850us-gaap:FiduciaryAndTrustMember2022-01-012022-03-310001174850us-gaap:FiduciaryAndTrustMember2021-01-012021-03-310001174850us-gaap:AdministrativeServiceMember2022-01-012022-03-310001174850us-gaap:AdministrativeServiceMember2021-01-012021-03-310001174850us-gaap:DepositAccountMember2022-01-012022-03-310001174850us-gaap:DepositAccountMember2021-01-012021-03-310001174850us-gaap:CreditAndDebitCardMember2022-01-012022-03-310001174850us-gaap:CreditAndDebitCardMember2021-01-012021-03-310001174850us-gaap:CommonStockMember2021-12-310001174850us-gaap:AdditionalPaidInCapitalMember2021-12-310001174850us-gaap:RetainedEarningsMember2021-12-310001174850us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001174850us-gaap:RetainedEarningsMember2022-01-012022-03-310001174850us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001174850us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001174850us-gaap:CommonStockMember2022-01-012022-03-310001174850us-gaap:CommonStockMember2022-03-310001174850us-gaap:AdditionalPaidInCapitalMember2022-03-310001174850us-gaap:RetainedEarningsMember2022-03-310001174850us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001174850us-gaap:CommonStockMember2020-12-310001174850us-gaap:AdditionalPaidInCapitalMember2020-12-310001174850us-gaap:RetainedEarningsMember2020-12-310001174850us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-3100011748502020-12-310001174850us-gaap:RetainedEarningsMember2021-01-012021-03-310001174850us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001174850us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001174850us-gaap:CommonStockMember2021-03-310001174850us-gaap:AdditionalPaidInCapitalMember2021-03-310001174850us-gaap:RetainedEarningsMember2021-03-310001174850us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-3100011748502021-03-310001174850ncbs:CountyBancorpIncMember2021-12-032021-12-030001174850ncbs:CountyBancorpIncMember2021-12-030001174850ncbs:CountyBancorpIncMember2022-03-310001174850ncbs:CountyBancorpIncMember2021-12-032022-03-310001174850ncbs:CountyBancorpIncMember2021-12-020001174850us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMemberncbs:CountyBancorpIncMember2021-12-030001174850ncbs:MackinacFinancialCorporationMember2021-09-032021-09-030001174850ncbs:MackinacFinancialCorporationMember2021-09-030001174850ncbs:MackinacFinancialCorporationMember2022-03-310001174850ncbs:MackinacFinancialCorporationMember2021-09-032022-03-310001174850ncbs:MackinacFinancialCorporationMember2021-09-020001174850us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMemberncbs:MackinacFinancialCorporationMember2021-09-030001174850ncbs:CountyBancorpIncAndMackinacFinancialCorporationMember2021-01-012021-03-310001174850ncbs:CharterBanksharesIncMember2022-03-292022-03-290001174850ncbs:CharterBanksharesIncMember2021-12-310001174850ncbs:StockIncentivePlanMemberus-gaap:EmployeeStockOptionMember2022-01-012022-03-31xbrli:pure0001174850ncbs:StockIncentivePlanMemberus-gaap:EmployeeStockOptionMember2021-01-012021-03-310001174850ncbs:StockIncentivePlanMemberus-gaap:EmployeeStockOptionMember2021-12-310001174850ncbs:StockIncentivePlanMemberus-gaap:EmployeeStockOptionMember2022-03-310001174850us-gaap:EmployeeStockOptionMember2022-01-012022-03-310001174850us-gaap:EmployeeStockOptionMember2021-01-012021-03-310001174850us-gaap:RestrictedStockMember2021-12-310001174850us-gaap:RestrictedStockMember2022-01-012022-03-310001174850us-gaap:RestrictedStockMember2022-03-310001174850srt:DirectorMemberus-gaap:RestrictedStockMember2021-01-012021-03-310001174850us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2022-03-310001174850us-gaap:USStatesAndPoliticalSubdivisionsMember2022-03-310001174850us-gaap:MortgageBackedSecuritiesMember2022-03-310001174850us-gaap:CorporateDebtSecuritiesMember2022-03-310001174850us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2021-12-310001174850us-gaap:USStatesAndPoliticalSubdivisionsMember2021-12-310001174850us-gaap:MortgageBackedSecuritiesMember2021-12-310001174850us-gaap:CorporateDebtSecuritiesMember2021-12-31ncbs:Security0001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2022-03-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2021-12-310001174850ncbs:CommercialRealEstateOwnerOccupiedMemberus-gaap:CommercialPortfolioSegmentMember2022-03-310001174850ncbs:CommercialRealEstateOwnerOccupiedMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310001174850ncbs:AgriculturalMemberus-gaap:CommercialPortfolioSegmentMember2022-03-310001174850ncbs:AgriculturalMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310001174850us-gaap:CommercialRealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-03-310001174850us-gaap:CommercialRealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310001174850ncbs:ConstructionAndLandDevelopmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-03-310001174850ncbs:ConstructionAndLandDevelopmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310001174850us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2022-03-310001174850us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2021-12-310001174850us-gaap:ResidentialPortfolioSegmentMemberncbs:FirstLienMember2022-03-310001174850us-gaap:ResidentialPortfolioSegmentMemberncbs:FirstLienMember2021-12-310001174850us-gaap:ResidentialPortfolioSegmentMemberus-gaap:JuniorLienMember2022-03-310001174850us-gaap:ResidentialPortfolioSegmentMemberus-gaap:JuniorLienMember2021-12-310001174850ncbs:RetailAndOtherFinancingReceivablesMember2022-03-310001174850ncbs:RetailAndOtherFinancingReceivablesMember2021-12-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:PaycheckProtectionProgramLoansMember2022-03-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:PaycheckProtectionProgramLoansMember2021-12-3100011748502021-01-012021-12-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2022-01-012022-03-310001174850ncbs:CommercialRealEstateOwnerOccupiedMemberus-gaap:CommercialPortfolioSegmentMember2022-01-012022-03-310001174850ncbs:AgriculturalMemberus-gaap:CommercialPortfolioSegmentMember2022-01-012022-03-310001174850us-gaap:CommercialRealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-01-012022-03-310001174850ncbs:ConstructionAndLandDevelopmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-01-012022-03-310001174850us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2022-01-012022-03-310001174850us-gaap:ResidentialPortfolioSegmentMemberncbs:FirstLienMember2022-01-012022-03-310001174850us-gaap:ResidentialPortfolioSegmentMemberus-gaap:JuniorLienMember2022-01-012022-03-310001174850ncbs:RetailAndOtherFinancingReceivablesMember2022-01-012022-03-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2020-12-310001174850ncbs:CommercialRealEstateOwnerOccupiedMemberus-gaap:CommercialPortfolioSegmentMember2020-12-310001174850ncbs:AgriculturalMemberus-gaap:CommercialPortfolioSegmentMember2020-12-310001174850us-gaap:CommercialRealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2020-12-310001174850ncbs:ConstructionAndLandDevelopmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2020-12-310001174850us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2020-12-310001174850us-gaap:ResidentialPortfolioSegmentMemberncbs:FirstLienMember2020-12-310001174850us-gaap:ResidentialPortfolioSegmentMemberus-gaap:JuniorLienMember2020-12-310001174850ncbs:RetailAndOtherFinancingReceivablesMember2020-12-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2021-01-012021-12-310001174850ncbs:CommercialRealEstateOwnerOccupiedMemberus-gaap:CommercialPortfolioSegmentMember2021-01-012021-12-310001174850ncbs:AgriculturalMemberus-gaap:CommercialPortfolioSegmentMember2021-01-012021-12-310001174850us-gaap:CommercialRealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-01-012021-12-310001174850ncbs:ConstructionAndLandDevelopmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-01-012021-12-310001174850us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2021-01-012021-12-310001174850us-gaap:ResidentialPortfolioSegmentMemberncbs:FirstLienMember2021-01-012021-12-310001174850us-gaap:ResidentialPortfolioSegmentMemberus-gaap:JuniorLienMember2021-01-012021-12-310001174850ncbs:RetailAndOtherFinancingReceivablesMember2021-01-012021-12-310001174850us-gaap:RealEstateMemberus-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2022-03-310001174850ncbs:OtherBusinessAssetsMemberus-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2022-03-310001174850ncbs:CommercialRealEstateOwnerOccupiedMemberus-gaap:RealEstateMemberus-gaap:CommercialPortfolioSegmentMember2022-03-310001174850ncbs:OtherBusinessAssetsMemberncbs:CommercialRealEstateOwnerOccupiedMemberus-gaap:CommercialPortfolioSegmentMember2022-03-310001174850ncbs:AgriculturalMemberus-gaap:RealEstateMemberus-gaap:CommercialPortfolioSegmentMember2022-03-310001174850ncbs:AgriculturalMemberncbs:OtherBusinessAssetsMemberus-gaap:CommercialPortfolioSegmentMember2022-03-310001174850us-gaap:CommercialRealEstateMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-03-310001174850us-gaap:CommercialRealEstateMemberncbs:OtherBusinessAssetsMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-03-310001174850us-gaap:RealEstateMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-03-310001174850ncbs:OtherBusinessAssetsMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-03-310001174850us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateMember2022-03-310001174850us-gaap:ConstructionLoansMemberncbs:OtherBusinessAssetsMemberus-gaap:ResidentialPortfolioSegmentMember2022-03-310001174850us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateMemberncbs:FirstLienMember2022-03-310001174850ncbs:OtherBusinessAssetsMemberus-gaap:ResidentialPortfolioSegmentMemberncbs:FirstLienMember2022-03-310001174850us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateMemberus-gaap:JuniorLienMember2022-03-310001174850ncbs:OtherBusinessAssetsMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:JuniorLienMember2022-03-310001174850us-gaap:RealEstateMemberncbs:RetailAndOtherFinancingReceivablesMember2022-03-310001174850ncbs:OtherBusinessAssetsMemberncbs:RetailAndOtherFinancingReceivablesMember2022-03-310001174850us-gaap:RealEstateMember2022-03-310001174850ncbs:OtherBusinessAssetsMember2022-03-310001174850us-gaap:RealEstateMemberus-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2021-12-310001174850ncbs:OtherBusinessAssetsMemberus-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2021-12-310001174850ncbs:CommercialRealEstateOwnerOccupiedMemberus-gaap:RealEstateMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310001174850ncbs:OtherBusinessAssetsMemberncbs:CommercialRealEstateOwnerOccupiedMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310001174850ncbs:AgriculturalMemberus-gaap:RealEstateMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310001174850ncbs:AgriculturalMemberncbs:OtherBusinessAssetsMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310001174850us-gaap:CommercialRealEstateMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310001174850us-gaap:CommercialRealEstateMemberncbs:OtherBusinessAssetsMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310001174850us-gaap:RealEstateMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310001174850ncbs:OtherBusinessAssetsMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310001174850us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateMember2021-12-310001174850us-gaap:ConstructionLoansMemberncbs:OtherBusinessAssetsMemberus-gaap:ResidentialPortfolioSegmentMember2021-12-310001174850us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateMemberncbs:FirstLienMember2021-12-310001174850ncbs:OtherBusinessAssetsMemberus-gaap:ResidentialPortfolioSegmentMemberncbs:FirstLienMember2021-12-310001174850us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateMemberus-gaap:JuniorLienMember2021-12-310001174850ncbs:OtherBusinessAssetsMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:JuniorLienMember2021-12-310001174850us-gaap:RealEstateMemberncbs:RetailAndOtherFinancingReceivablesMember2021-12-310001174850ncbs:OtherBusinessAssetsMemberncbs:RetailAndOtherFinancingReceivablesMember2021-12-310001174850us-gaap:RealEstateMember2021-12-310001174850ncbs:OtherBusinessAssetsMember2021-12-310001174850ncbs:FinancialAsset30To89DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2022-03-310001174850us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2022-03-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMemberus-gaap:FinancialAssetNotPastDueMember2022-03-310001174850ncbs:CommercialRealEstateOwnerOccupiedMemberncbs:FinancialAsset30To89DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2022-03-310001174850us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberncbs:CommercialRealEstateOwnerOccupiedMemberus-gaap:CommercialPortfolioSegmentMember2022-03-310001174850ncbs:CommercialRealEstateOwnerOccupiedMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2022-03-310001174850ncbs:AgriculturalMemberncbs:FinancialAsset30To89DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2022-03-310001174850us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberncbs:AgriculturalMemberus-gaap:CommercialPortfolioSegmentMember2022-03-310001174850ncbs:AgriculturalMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2022-03-310001174850us-gaap:CommercialRealEstateMemberncbs:FinancialAsset30To89DaysPastDueMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-03-310001174850us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:CommercialRealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-03-310001174850us-gaap:CommercialRealEstateMemberus-gaap:FinancialAssetNotPastDueMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-03-310001174850ncbs:FinancialAsset30To89DaysPastDueMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-03-310001174850us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-03-310001174850ncbs:ConstructionAndLandDevelopmentMemberus-gaap:FinancialAssetNotPastDueMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-03-310001174850us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMemberncbs:FinancialAsset30To89DaysPastDueMember2022-03-310001174850us-gaap:ConstructionLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2022-03-310001174850us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2022-03-310001174850us-gaap:ResidentialPortfolioSegmentMemberncbs:FinancialAsset30To89DaysPastDueMemberncbs:FirstLienMember2022-03-310001174850us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMemberncbs:FirstLienMember2022-03-310001174850us-gaap:ResidentialPortfolioSegmentMemberncbs:FirstLienMemberus-gaap:FinancialAssetNotPastDueMember2022-03-310001174850us-gaap:ResidentialPortfolioSegmentMemberncbs:FinancialAsset30To89DaysPastDueMemberus-gaap:JuniorLienMember2022-03-310001174850us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:JuniorLienMember2022-03-310001174850us-gaap:ResidentialPortfolioSegmentMemberus-gaap:JuniorLienMemberus-gaap:FinancialAssetNotPastDueMember2022-03-310001174850ncbs:FinancialAsset30To89DaysPastDueMemberncbs:RetailAndOtherFinancingReceivablesMember2022-03-310001174850us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberncbs:RetailAndOtherFinancingReceivablesMember2022-03-310001174850ncbs:RetailAndOtherFinancingReceivablesMemberus-gaap:FinancialAssetNotPastDueMember2022-03-310001174850ncbs:FinancialAsset30To89DaysPastDueMember2022-03-310001174850us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-03-310001174850us-gaap:FinancialAssetNotPastDueMember2022-03-310001174850ncbs:FinancialAsset30To89DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2021-12-310001174850us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2021-12-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMemberus-gaap:FinancialAssetNotPastDueMember2021-12-310001174850ncbs:CommercialRealEstateOwnerOccupiedMemberncbs:FinancialAsset30To89DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310001174850us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberncbs:CommercialRealEstateOwnerOccupiedMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310001174850ncbs:CommercialRealEstateOwnerOccupiedMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2021-12-310001174850ncbs:AgriculturalMemberncbs:FinancialAsset30To89DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310001174850us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberncbs:AgriculturalMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310001174850ncbs:AgriculturalMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2021-12-310001174850us-gaap:CommercialRealEstateMemberncbs:FinancialAsset30To89DaysPastDueMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310001174850us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:CommercialRealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310001174850us-gaap:CommercialRealEstateMemberus-gaap:FinancialAssetNotPastDueMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310001174850ncbs:FinancialAsset30To89DaysPastDueMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310001174850us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310001174850ncbs:ConstructionAndLandDevelopmentMemberus-gaap:FinancialAssetNotPastDueMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310001174850us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMemberncbs:FinancialAsset30To89DaysPastDueMember2021-12-310001174850us-gaap:ConstructionLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2021-12-310001174850us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2021-12-310001174850us-gaap:ResidentialPortfolioSegmentMemberncbs:FinancialAsset30To89DaysPastDueMemberncbs:FirstLienMember2021-12-310001174850us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMemberncbs:FirstLienMember2021-12-310001174850us-gaap:ResidentialPortfolioSegmentMemberncbs:FirstLienMemberus-gaap:FinancialAssetNotPastDueMember2021-12-310001174850us-gaap:ResidentialPortfolioSegmentMemberncbs:FinancialAsset30To89DaysPastDueMemberus-gaap:JuniorLienMember2021-12-310001174850us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:JuniorLienMember2021-12-310001174850us-gaap:ResidentialPortfolioSegmentMemberus-gaap:JuniorLienMemberus-gaap:FinancialAssetNotPastDueMember2021-12-310001174850ncbs:FinancialAsset30To89DaysPastDueMemberncbs:RetailAndOtherFinancingReceivablesMember2021-12-310001174850us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberncbs:RetailAndOtherFinancingReceivablesMember2021-12-310001174850ncbs:RetailAndOtherFinancingReceivablesMemberus-gaap:FinancialAssetNotPastDueMember2021-12-310001174850ncbs:FinancialAsset30To89DaysPastDueMember2021-12-310001174850us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2021-12-310001174850us-gaap:FinancialAssetNotPastDueMember2021-12-310001174850us-gaap:PassMemberus-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2022-03-310001174850ncbs:WatchMemberus-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2022-03-310001174850us-gaap:SpecialMentionMemberus-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2022-03-310001174850us-gaap:SubstandardMemberus-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2022-03-310001174850us-gaap:PassMemberncbs:CommercialRealEstateOwnerOccupiedMemberus-gaap:CommercialPortfolioSegmentMember2022-03-310001174850ncbs:WatchMemberncbs:CommercialRealEstateOwnerOccupiedMemberus-gaap:CommercialPortfolioSegmentMember2022-03-310001174850ncbs:CommercialRealEstateOwnerOccupiedMemberus-gaap:SpecialMentionMemberus-gaap:CommercialPortfolioSegmentMember2022-03-310001174850ncbs:CommercialRealEstateOwnerOccupiedMemberus-gaap:SubstandardMemberus-gaap:CommercialPortfolioSegmentMember2022-03-310001174850us-gaap:PassMemberncbs:AgriculturalMemberus-gaap:CommercialPortfolioSegmentMember2022-03-310001174850ncbs:WatchMemberncbs:AgriculturalMemberus-gaap:CommercialPortfolioSegmentMember2022-03-310001174850ncbs:AgriculturalMemberus-gaap:SpecialMentionMemberus-gaap:CommercialPortfolioSegmentMember2022-03-310001174850ncbs:AgriculturalMemberus-gaap:SubstandardMemberus-gaap:CommercialPortfolioSegmentMember2022-03-310001174850us-gaap:PassMemberus-gaap:CommercialRealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-03-310001174850ncbs:WatchMemberus-gaap:CommercialRealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-03-310001174850us-gaap:CommercialRealEstateMemberus-gaap:SpecialMentionMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-03-310001174850us-gaap:CommercialRealEstateMemberus-gaap:SubstandardMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-03-310001174850us-gaap:PassMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-03-310001174850ncbs:WatchMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-03-310001174850us-gaap:SpecialMentionMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-03-310001174850us-gaap:SubstandardMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-03-310001174850us-gaap:PassMemberus-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2022-03-310001174850ncbs:WatchMemberus-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2022-03-310001174850us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:SpecialMentionMember2022-03-310001174850us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:SubstandardMember2022-03-310001174850us-gaap:PassMemberus-gaap:ResidentialPortfolioSegmentMemberncbs:FirstLienMember2022-03-310001174850ncbs:WatchMemberus-gaap:ResidentialPortfolioSegmentMemberncbs:FirstLienMember2022-03-310001174850us-gaap:ResidentialPortfolioSegmentMemberncbs:FirstLienMemberus-gaap:SpecialMentionMember2022-03-310001174850us-gaap:ResidentialPortfolioSegmentMemberus-gaap:SubstandardMemberncbs:FirstLienMember2022-03-310001174850us-gaap:PassMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:JuniorLienMember2022-03-310001174850ncbs:WatchMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:JuniorLienMember2022-03-310001174850us-gaap:ResidentialPortfolioSegmentMemberus-gaap:SpecialMentionMemberus-gaap:JuniorLienMember2022-03-310001174850us-gaap:ResidentialPortfolioSegmentMemberus-gaap:SubstandardMemberus-gaap:JuniorLienMember2022-03-310001174850us-gaap:PassMemberncbs:RetailAndOtherFinancingReceivablesMember2022-03-310001174850ncbs:WatchMemberncbs:RetailAndOtherFinancingReceivablesMember2022-03-310001174850ncbs:RetailAndOtherFinancingReceivablesMemberus-gaap:SpecialMentionMember2022-03-310001174850us-gaap:SubstandardMemberncbs:RetailAndOtherFinancingReceivablesMember2022-03-310001174850us-gaap:PassMemberus-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2021-12-310001174850ncbs:WatchMemberus-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2021-12-310001174850us-gaap:SpecialMentionMemberus-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2021-12-310001174850us-gaap:SubstandardMemberus-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2021-12-310001174850us-gaap:PassMemberncbs:CommercialRealEstateOwnerOccupiedMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310001174850ncbs:WatchMemberncbs:CommercialRealEstateOwnerOccupiedMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310001174850ncbs:CommercialRealEstateOwnerOccupiedMemberus-gaap:SpecialMentionMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310001174850ncbs:CommercialRealEstateOwnerOccupiedMemberus-gaap:SubstandardMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310001174850us-gaap:PassMemberncbs:AgriculturalMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310001174850ncbs:WatchMemberncbs:AgriculturalMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310001174850ncbs:AgriculturalMemberus-gaap:SpecialMentionMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310001174850ncbs:AgriculturalMemberus-gaap:SubstandardMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310001174850us-gaap:PassMemberus-gaap:CommercialRealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310001174850ncbs:WatchMemberus-gaap:CommercialRealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310001174850us-gaap:CommercialRealEstateMemberus-gaap:SpecialMentionMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310001174850us-gaap:CommercialRealEstateMemberus-gaap:SubstandardMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310001174850us-gaap:PassMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310001174850ncbs:WatchMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310001174850us-gaap:SpecialMentionMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310001174850us-gaap:SubstandardMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310001174850us-gaap:PassMemberus-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2021-12-310001174850ncbs:WatchMemberus-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2021-12-310001174850us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:SpecialMentionMember2021-12-310001174850us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:SubstandardMember2021-12-310001174850us-gaap:PassMemberus-gaap:ResidentialPortfolioSegmentMemberncbs:FirstLienMember2021-12-310001174850ncbs:WatchMemberus-gaap:ResidentialPortfolioSegmentMemberncbs:FirstLienMember2021-12-310001174850us-gaap:ResidentialPortfolioSegmentMemberncbs:FirstLienMemberus-gaap:SpecialMentionMember2021-12-310001174850us-gaap:ResidentialPortfolioSegmentMemberus-gaap:SubstandardMemberncbs:FirstLienMember2021-12-310001174850us-gaap:PassMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:JuniorLienMember2021-12-310001174850ncbs:WatchMemberus-gaap:ResidentialPortfolioSegmentMemberus-gaap:JuniorLienMember2021-12-310001174850us-gaap:ResidentialPortfolioSegmentMemberus-gaap:SpecialMentionMemberus-gaap:JuniorLienMember2021-12-310001174850us-gaap:ResidentialPortfolioSegmentMemberus-gaap:SubstandardMemberus-gaap:JuniorLienMember2021-12-310001174850us-gaap:PassMemberncbs:RetailAndOtherFinancingReceivablesMember2021-12-310001174850ncbs:WatchMemberncbs:RetailAndOtherFinancingReceivablesMember2021-12-310001174850ncbs:RetailAndOtherFinancingReceivablesMemberus-gaap:SpecialMentionMember2021-12-310001174850us-gaap:SubstandardMemberncbs:RetailAndOtherFinancingReceivablesMember2021-12-310001174850us-gaap:PassMember2022-03-310001174850ncbs:WatchMember2022-03-310001174850us-gaap:SpecialMentionMember2022-03-310001174850us-gaap:SubstandardMember2022-03-310001174850us-gaap:PassMember2021-12-310001174850ncbs:WatchMember2021-12-310001174850us-gaap:SpecialMentionMember2021-12-310001174850us-gaap:SubstandardMember2021-12-310001174850us-gaap:PerformingFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2022-03-310001174850us-gaap:NonperformingFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2022-03-310001174850us-gaap:PerformingFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2021-12-310001174850us-gaap:NonperformingFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2021-12-310001174850ncbs:CommercialRealEstateOwnerOccupiedMemberus-gaap:PerformingFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2022-03-310001174850ncbs:CommercialRealEstateOwnerOccupiedMemberus-gaap:NonperformingFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2022-03-310001174850ncbs:CommercialRealEstateOwnerOccupiedMemberus-gaap:PerformingFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310001174850ncbs:CommercialRealEstateOwnerOccupiedMemberus-gaap:NonperformingFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310001174850ncbs:AgriculturalMemberus-gaap:PerformingFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2022-03-310001174850ncbs:AgriculturalMemberus-gaap:NonperformingFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2022-03-310001174850ncbs:AgriculturalMemberus-gaap:PerformingFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310001174850ncbs:AgriculturalMemberus-gaap:NonperformingFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310001174850us-gaap:CommercialRealEstateMemberus-gaap:PerformingFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-03-310001174850us-gaap:CommercialRealEstateMemberus-gaap:NonperformingFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-03-310001174850us-gaap:CommercialRealEstateMemberus-gaap:PerformingFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310001174850us-gaap:CommercialRealEstateMemberus-gaap:NonperformingFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310001174850us-gaap:PerformingFinancingReceivableMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-03-310001174850us-gaap:NonperformingFinancingReceivableMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-03-310001174850us-gaap:PerformingFinancingReceivableMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310001174850us-gaap:NonperformingFinancingReceivableMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310001174850us-gaap:ResidentialPortfolioSegmentMemberus-gaap:PerformingFinancingReceivableMemberncbs:FirstLienMember2022-03-310001174850us-gaap:ResidentialPortfolioSegmentMemberus-gaap:NonperformingFinancingReceivableMemberncbs:FirstLienMember2022-03-310001174850us-gaap:ResidentialPortfolioSegmentMemberus-gaap:PerformingFinancingReceivableMemberncbs:FirstLienMember2021-12-310001174850us-gaap:ResidentialPortfolioSegmentMemberus-gaap:NonperformingFinancingReceivableMemberncbs:FirstLienMember2021-12-310001174850us-gaap:ResidentialPortfolioSegmentMemberus-gaap:PerformingFinancingReceivableMemberus-gaap:JuniorLienMember2022-03-310001174850us-gaap:ResidentialPortfolioSegmentMemberus-gaap:NonperformingFinancingReceivableMemberus-gaap:JuniorLienMember2022-03-310001174850us-gaap:ResidentialPortfolioSegmentMemberus-gaap:PerformingFinancingReceivableMemberus-gaap:JuniorLienMember2021-12-310001174850us-gaap:ResidentialPortfolioSegmentMemberus-gaap:NonperformingFinancingReceivableMemberus-gaap:JuniorLienMember2021-12-310001174850us-gaap:PerformingFinancingReceivableMember2022-03-310001174850us-gaap:NonperformingFinancingReceivableMember2022-03-310001174850us-gaap:PerformingFinancingReceivableMember2021-12-310001174850us-gaap:NonperformingFinancingReceivableMember2021-12-31ncbs:loan0001174850us-gaap:CoreDepositsMember2022-03-310001174850us-gaap:CoreDepositsMember2021-12-310001174850us-gaap:CustomerListsMember2022-03-310001174850us-gaap:CustomerListsMember2021-12-310001174850us-gaap:CoreDepositsMember2022-01-012022-03-310001174850us-gaap:CoreDepositsMember2021-01-012021-12-310001174850us-gaap:CustomerListsMember2022-01-012022-03-310001174850us-gaap:CustomerListsMember2021-01-012021-12-310001174850ncbs:MortgageServicingRightsMember2021-12-310001174850ncbs:MortgageServicingRightsMember2020-12-310001174850ncbs:MortgageServicingRightsMember2022-01-012022-03-310001174850ncbs:MortgageServicingRightsMember2021-01-012021-12-310001174850ncbs:MortgageServicingRightsMember2022-03-310001174850ncbs:LoanServicingRightsMember2022-03-310001174850us-gaap:FederalHomeLoanBankAdvancesMember2022-03-310001174850us-gaap:FederalHomeLoanBankAdvancesMember2021-12-310001174850us-gaap:JuniorSubordinatedDebtMember2022-03-310001174850us-gaap:JuniorSubordinatedDebtMember2021-12-310001174850us-gaap:SubordinatedDebtMember2022-03-310001174850us-gaap:SubordinatedDebtMember2021-12-310001174850us-gaap:SubordinatedDebtMember2021-07-310001174850ncbs:SubordinatedNotesDue2031Memberus-gaap:SubordinatedDebtMember2021-07-310001174850ncbs:CountySubordinatedNotesDue2028Memberus-gaap:SubordinatedDebtMember2021-12-310001174850srt:ScenarioForecastMemberus-gaap:LondonInterbankOfferedRateLIBORMemberncbs:CountySubordinatedNotesDue2028Memberus-gaap:SubordinatedDebtMember2026-12-312028-12-310001174850ncbs:CountySubordinatedNotesDue2030Memberus-gaap:SubordinatedDebtMember2021-12-310001174850ncbs:MidWisconsinFinancialServicesIncMemberus-gaap:JuniorSubordinatedDebtMember2022-03-310001174850ncbs:MidWisconsinFinancialServicesIncMemberus-gaap:JuniorSubordinatedDebtMember2021-12-310001174850us-gaap:JuniorSubordinatedDebtMemberncbs:BaylakeCorpMember2022-03-310001174850us-gaap:JuniorSubordinatedDebtMemberncbs:BaylakeCorpMember2021-12-310001174850ncbs:FirstMenashaBancsharesIncMemberus-gaap:JuniorSubordinatedDebtMember2022-03-310001174850ncbs:FirstMenashaBancsharesIncMemberus-gaap:JuniorSubordinatedDebtMember2021-12-310001174850ncbs:CountyBancorpStatutoryTrustIIMemberus-gaap:JuniorSubordinatedDebtMember2022-03-310001174850ncbs:CountyBancorpStatutoryTrustIIMemberus-gaap:JuniorSubordinatedDebtMember2021-12-310001174850us-gaap:JuniorSubordinatedDebtMemberncbs:CountyBancorpStatutoryTrustIIIMember2022-03-310001174850us-gaap:JuniorSubordinatedDebtMemberncbs:CountyBancorpStatutoryTrustIIIMember2021-12-310001174850ncbs:FoxRiverValleyCapitalTrustMemberus-gaap:JuniorSubordinatedDebtMember2022-03-310001174850ncbs:FoxRiverValleyCapitalTrustMemberus-gaap:JuniorSubordinatedDebtMember2021-12-310001174850ncbs:SubordinatedNotesDue2031Memberus-gaap:SubordinatedDebtMember2022-03-310001174850ncbs:SubordinatedNotesDue2031Memberus-gaap:SubordinatedDebtMember2021-12-310001174850ncbs:CountySubordinatedNotesDue2028Memberus-gaap:SubordinatedDebtMember2022-03-310001174850ncbs:CountySubordinatedNotesDue2030Memberus-gaap:SubordinatedDebtMember2022-03-310001174850ncbs:MidWisconsinFinancialServicesIncMemberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:JuniorSubordinatedDebtMember2022-01-012022-03-310001174850us-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:JuniorSubordinatedDebtMemberncbs:BaylakeCorpMember2022-01-012022-03-310001174850us-gaap:LondonInterbankOfferedRateLIBORMemberncbs:FirstMenashaBancsharesIncMemberus-gaap:JuniorSubordinatedDebtMember2022-01-012022-03-310001174850us-gaap:LondonInterbankOfferedRateLIBORMemberncbs:CountyBancorpStatutoryTrustIIMemberus-gaap:JuniorSubordinatedDebtMember2022-01-012022-03-310001174850us-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:JuniorSubordinatedDebtMemberncbs:CountyBancorpStatutoryTrustIIIMember2022-01-012022-03-310001174850us-gaap:LondonInterbankOfferedRateLIBORMemberncbs:FoxRiverValleyCapitalTrustMemberus-gaap:JuniorSubordinatedDebtMember2022-01-012022-03-310001174850ncbs:SecuredOvernightFinancingRateSOFRMembersrt:ScenarioForecastMemberus-gaap:SubordinatedDebtMember2026-07-162031-07-150001174850ncbs:SecuredOvernightFinancingRateSOFRMembersrt:ScenarioForecastMemberncbs:CountySubordinatedNotesDue2028Memberus-gaap:SubordinatedDebtMember2026-12-312030-12-310001174850us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001174850us-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001174850us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001174850us-gaap:FairValueInputsLevel3Memberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001174850us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001174850us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001174850us-gaap:FairValueInputsLevel2Memberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001174850us-gaap:FairValueInputsLevel3Memberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001174850us-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001174850us-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001174850us-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001174850us-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001174850us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001174850us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001174850us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001174850us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001174850us-gaap:FairValueMeasurementsRecurringMember2022-03-310001174850us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001174850us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001174850us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001174850us-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001174850us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001174850us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001174850us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001174850us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001174850us-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001174850us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001174850us-gaap:FairValueInputsLevel3Memberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001174850us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001174850us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001174850us-gaap:FairValueInputsLevel2Memberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001174850us-gaap:FairValueInputsLevel3Memberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001174850us-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001174850us-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001174850us-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001174850us-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001174850us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001174850us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001174850us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001174850us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001174850us-gaap:FairValueMeasurementsRecurringMember2021-12-310001174850us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001174850us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001174850us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001174850us-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001174850us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001174850us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001174850us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001174850us-gaap:AvailableforsaleSecuritiesMember2021-12-310001174850us-gaap:AvailableforsaleSecuritiesMember2020-12-310001174850us-gaap:AvailableforsaleSecuritiesMember2022-01-012022-03-310001174850us-gaap:AvailableforsaleSecuritiesMember2021-01-012021-12-310001174850us-gaap:AvailableforsaleSecuritiesMember2022-03-310001174850ncbs:CollateralDependentLoansMemberus-gaap:FairValueMeasurementsNonrecurringMember2022-03-310001174850ncbs:CollateralDependentLoansMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-03-310001174850ncbs:CollateralDependentLoansMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-03-310001174850ncbs:CollateralDependentLoansMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-03-310001174850ncbs:OtherRealEstateOwnedMemberus-gaap:FairValueMeasurementsNonrecurringMember2022-03-310001174850ncbs:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-03-310001174850ncbs:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-03-310001174850ncbs:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-03-310001174850ncbs:MortgageServicingRightsMemberus-gaap:FairValueMeasurementsNonrecurringMember2022-03-310001174850ncbs:MortgageServicingRightsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-03-310001174850ncbs:MortgageServicingRightsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-03-310001174850ncbs:MortgageServicingRightsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-03-310001174850ncbs:LoanServicingRightsMemberus-gaap:FairValueMeasurementsNonrecurringMember2022-03-310001174850ncbs:LoanServicingRightsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-03-310001174850us-gaap:FairValueInputsLevel2Memberncbs:LoanServicingRightsMemberus-gaap:FairValueMeasurementsNonrecurringMember2022-03-310001174850us-gaap:FairValueInputsLevel3Memberncbs:LoanServicingRightsMemberus-gaap:FairValueMeasurementsNonrecurringMember2022-03-310001174850ncbs:CollateralDependentLoansMemberus-gaap:FairValueMeasurementsNonrecurringMember2021-12-310001174850ncbs:CollateralDependentLoansMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2021-12-310001174850ncbs:CollateralDependentLoansMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2021-12-310001174850ncbs:CollateralDependentLoansMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2021-12-310001174850ncbs:OtherRealEstateOwnedMemberus-gaap:FairValueMeasurementsNonrecurringMember2021-12-310001174850ncbs:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2021-12-310001174850ncbs:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2021-12-310001174850ncbs:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2021-12-310001174850ncbs:MortgageServicingRightsMemberus-gaap:FairValueMeasurementsNonrecurringMember2021-12-310001174850ncbs:MortgageServicingRightsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2021-12-310001174850ncbs:MortgageServicingRightsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2021-12-310001174850ncbs:MortgageServicingRightsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2021-12-310001174850ncbs:LoanServicingRightsMemberus-gaap:FairValueMeasurementsNonrecurringMember2021-12-310001174850ncbs:LoanServicingRightsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2021-12-310001174850us-gaap:FairValueInputsLevel2Memberncbs:LoanServicingRightsMemberus-gaap:FairValueMeasurementsNonrecurringMember2021-12-310001174850us-gaap:FairValueInputsLevel3Memberncbs:LoanServicingRightsMemberus-gaap:FairValueMeasurementsNonrecurringMember2021-12-310001174850us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-03-310001174850us-gaap:EstimateOfFairValueFairValueDisclosureMember2022-03-310001174850us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-03-310001174850us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-03-310001174850us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-03-310001174850ncbs:MortgageServicingRightsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-03-310001174850ncbs:MortgageServicingRightsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-03-310001174850ncbs:MortgageServicingRightsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-03-310001174850ncbs:MortgageServicingRightsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-03-310001174850ncbs:MortgageServicingRightsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-03-310001174850ncbs:LoanServicingRightsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-03-310001174850ncbs:LoanServicingRightsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-03-310001174850ncbs:LoanServicingRightsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-03-310001174850us-gaap:FairValueInputsLevel2Memberncbs:LoanServicingRightsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-03-310001174850us-gaap:FairValueInputsLevel3Memberncbs:LoanServicingRightsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-03-310001174850us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310001174850us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001174850us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001174850us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001174850us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001174850ncbs:MortgageServicingRightsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310001174850ncbs:MortgageServicingRightsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001174850ncbs:MortgageServicingRightsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001174850ncbs:MortgageServicingRightsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001174850ncbs:MortgageServicingRightsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001174850ncbs:LoanServicingRightsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310001174850ncbs:LoanServicingRightsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001174850ncbs:LoanServicingRightsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001174850us-gaap:FairValueInputsLevel2Memberncbs:LoanServicingRightsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001174850us-gaap:FairValueInputsLevel3Memberncbs:LoanServicingRightsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001174850ncbs:BirminghamSaleMemberus-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember2021-12-31
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________
FORM 10-Q
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number: 001-37700
NICOLET BANKSHARES, INC.
(Exact Name of Registrant as Specified in its Charter)
| | | | | | | | | | | | | | |
Wisconsin | 47-0871001 |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
| | | | |
111 North Washington Street | |
| Green Bay, | Wisconsin | | 54301 |
(Address of Principal Executive Offices) | (Zip Code) |
| | | | |
(920) | 430-1400 | |
(Registrant’s Telephone Number, Including Area Code) |
| | | |
N/A (Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report) |
| | | | | | | | |
Securities registered pursuant to Section 12(b) of the Act: |
| | |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, par value $0.01 per share | NCBS | The NASDAQ Stock Market LLC |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| | | | | | | | | | | |
Large accelerated filer | ☐ | Accelerated filer | ☒ |
| | | |
Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
| | | |
Emerging Growth Company | ☐ | | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of April 27, 2022 there were 13,392,160 shares of $0.01 par value common stock outstanding.
Nicolet Bankshares, Inc.
Quarterly Report on Form 10-Q
March 31, 2022
TABLE OF CONTENTS
PART I – FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS:
NICOLET BANKSHARES, INC.
Consolidated Balance Sheets
(In thousands, except share and per share data)
| | | | | | | | | | | |
| March 31, 2022 | | December 31, 2021 |
| (Unaudited) | | (Audited) |
Assets | | | |
Cash and due from banks | $ | 183,705 | | | $ | 209,349 | |
Interest-earning deposits | 212,218 | | | 385,943 | |
| | | |
Cash and cash equivalents | 395,923 | | | 595,292 | |
Certificates of deposit in other banks | 19,692 | | | 21,920 | |
Securities available for sale (“AFS”), at fair value | 852,331 | | | 921,661 | |
Securities held to maturity (“HTM”), at amortized cost | 684,991 | | | 651,803 | |
Other investments | 54,257 | | | 44,008 | |
Loans held for sale | 9,764 | | | 6,447 | |
Other assets held for sale | — | | | 199,833 | |
Loans | 4,683,315 | | | 4,621,836 | |
Allowance for credit losses - loans (“ACL-Loans”) | (49,906) | | | (49,672) | |
Loans, net | 4,633,409 | | | 4,572,164 | |
Premises and equipment, net | 94,275 | | | 94,566 | |
Bank owned life insurance (“BOLI”) | 135,292 | | | 134,476 | |
Goodwill and other intangibles, net | 338,068 | | | 339,492 | |
Accrued interest receivable and other assets | 102,210 | | | 113,375 | |
Total assets | $ | 7,320,212 | | | $ | 7,695,037 | |
| | | |
Liabilities and Stockholders’ Equity | | | |
Liabilities: | | | |
Noninterest-bearing demand deposits | $ | 1,912,995 | | | $ | 1,975,705 | |
Interest-bearing deposits | 4,318,125 | | | 4,490,211 | |
Total deposits | 6,231,120 | | | 6,465,916 | |
| | | |
Long-term borrowings | 206,946 | | | 216,915 | |
Other liabilities held for sale | — | | | 51,586 | |
Accrued interest payable and other liabilities | 45,836 | | | 68,729 | |
Total liabilities | 6,483,902 | | | 6,803,146 | |
| | | |
Stockholders’ Equity: | | | |
Common stock | 135 | | | 140 | |
Additional paid-in capital | 524,478 | | | 575,045 | |
Retained earnings | 337,768 | | | 313,604 | |
Accumulated other comprehensive income (loss) | (26,071) | | | 3,102 | |
Total stockholders’ equity | 836,310 | | | 891,891 | |
Total liabilities and stockholders’ equity | $ | 7,320,212 | | | $ | 7,695,037 | |
| | | |
Preferred shares authorized (no par value) | 10,000,000 | | | 10,000,000 | |
Preferred shares issued and outstanding | — | | | — | |
Common shares authorized (par value $0.01 per share) | 30,000,000 | | | 30,000,000 | |
Common shares outstanding | 13,456,741 | | | 13,994,079 | |
Common shares issued | 13,481,442 | | | 14,019,880 | |
See accompanying notes to unaudited consolidated financial statements.
ITEM 1. Financial Statements Continued:
NICOLET BANKSHARES, INC.
Consolidated Statements of Income
(In thousands, except share and per share data) (Unaudited)
| | | | | | | | | | | | | | | |
| Three Months Ended March 31, | | |
| 2022 | | 2021 | | | | |
Interest income: | | | | | | | |
Loans, including loan fees | $ | 51,299 | | | $ | 33,862 | | | | | |
Investment securities: | | | | | | | |
Taxable | 5,127 | | | 1,814 | | | | | |
Tax-exempt | 675 | | | 545 | | | | | |
Other interest income | 817 | | | 655 | | | | | |
Total interest income | 57,918 | | | 36,876 | | | | | |
Interest expense: | | | | | | | |
Deposits | 2,192 | | | 2,922 | | | | | |
Short-term borrowings | — | | | — | | | | | |
Long-term borrowings | 1,931 | | | 313 | | | | | |
Total interest expense | 4,123 | | | 3,235 | | | | | |
Net interest income | 53,795 | | | 33,641 | | | | | |
Provision for credit losses | 300 | | | 500 | | | | | |
Net interest income after provision for credit losses | 53,495 | | | 33,141 | | | | | |
Noninterest income: | | | | | | | |
Trust services fee income | 2,011 | | | 1,775 | | | | | |
Brokerage fee income | 3,688 | | | 2,793 | | | | | |
Mortgage income, net | 3,253 | | | 7,230 | | | | | |
Service charges on deposit accounts | 1,477 | | | 1,091 | | | | | |
Card interchange income | 2,581 | | | 1,927 | | | | | |
BOLI income | 933 | | | 527 | | | | | |
Asset gains (losses), net | 1,313 | | | 711 | | | | | |
Other income | 687 | | | 1,072 | | | | | |
Total noninterest income | 15,943 | | | 17,126 | | | | | |
Noninterest expense: | | | | | | | |
Personnel | 21,191 | | | 15,116 | | | | | |
Occupancy, equipment and office | 6,944 | | | 4,137 | | | | | |
Business development and marketing | 1,831 | | | 989 | | | | | |
Data processing | 3,387 | | | 2,658 | | | | | |
Intangibles amortization | 1,424 | | | 852 | | | | | |
FDIC assessments | 480 | | | 595 | | | | | |
Merger-related expense | 98 | | | — | | | | | |
Other expense | 2,195 | | | 1,734 | | | | | |
Total noninterest expense | 37,550 | | | 26,081 | | | | | |
Income before income tax expense | 31,888 | | | 24,186 | | | | | |
Income tax expense | 7,724 | | | 5,947 | | | | | |
Net income | $ | 24,164 | | | $ | 18,239 | | | | | |
Earnings per common share: | | | | | | | |
Basic | $ | 1.77 | | | $ | 1.82 | | | | | |
Diluted | $ | 1.70 | | | $ | 1.75 | | | | | |
Weighted average common shares outstanding: | | | | | | | |
Basic | 13,648,745 | | | 9,997,634 | | | | | |
Diluted | 14,214,752 | | | 10,403,309 | | | | | |
See accompanying notes to unaudited consolidated financial statements.
ITEM 1. Financial Statements Continued:
NICOLET BANKSHARES, INC.
Consolidated Statements of Comprehensive Income (Loss)
(In thousands) (Unaudited)
| | | | | | | | | | | | | | | |
| Three Months Ended March 31, | | |
| 2022 | | 2021 | | | | |
Net income | $ | 24,164 | | | $ | 18,239 | | | | | |
Other comprehensive income (loss), net of tax: | | | | | | | |
Unrealized gains (losses) on securities AFS: | | | | | | | |
Net unrealized holding gains (losses) | (39,948) | | | (7,369) | | | | | |
Net realized (gains) losses included in income | (15) | | | — | | | | | |
Income tax (expense) benefit | 10,790 | | | 1,989 | | | | | |
Total other comprehensive income (loss) | (29,173) | | | (5,380) | | | | | |
Comprehensive income (loss) | $ | (5,009) | | | $ | 12,859 | | | | | |
See accompanying notes to unaudited consolidated financial statements.
ITEM 1. Financial Statements Continued:
NICOLET BANKSHARES, INC.
Consolidated Statements of Stockholders’ Equity
(In thousands) (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| Common Stock | | Additional Paid-In Capital | | Retained Earnings | | Accumulated Other Comprehensive Income (Loss) | | Total |
Balances at December 31, 2021 | $ | 140 | | | $ | 575,045 | | | $ | 313,604 | | | $ | 3,102 | | | $ | 891,891 | |
Comprehensive income: | | | | | | | | | |
Net income, three months ended March 31, 2022 | — | | | — | | | 24,164 | | | — | | | 24,164 | |
Other comprehensive income (loss) | — | | | — | | | — | | | (29,173) | | | (29,173) | |
| | | | | | | | | |
Stock-based compensation expense | — | | | 1,799 | | | — | | | — | | | 1,799 | |
Exercise of stock options, net | 1 | | | 1,886 | | | — | | | — | | | 1,887 | |
Issuance of common stock | — | | | 175 | | | — | | | — | | | 175 | |
Purchase and retirement of common stock | (6) | | | (54,427) | | | — | | | — | | | (54,433) | |
| | | | | | | | | |
Balances at March 31, 2022 | $ | 135 | | | $ | 524,478 | | | $ | 337,768 | | | $ | (26,071) | | | $ | 836,310 | |
Balances at December 31, 2020 | $ | 100 | | | $ | 273,390 | | | $ | 252,952 | | | $ | 12,747 | | | $ | 539,189 | |
Comprehensive income: | | | | | | | | | |
Net income, three months ended March 31, 2021 | — | | | — | | | 18,239 | | | — | | | 18,239 | |
Other comprehensive income (loss) | — | | | — | | | — | | | (5,380) | | | (5,380) | |
Stock-based compensation expense | — | | | 1,341 | | | — | | | — | | | 1,341 | |
Exercise of stock options, net | — | | | 1,161 | | | — | | | — | | | 1,161 | |
Issuance of common stock | — | | | 121 | | | — | | | — | | | 121 | |
Purchase and retirement of common stock | — | | | (4,625) | | | — | | | — | | | (4,625) | |
| | | | | | | | | |
Balances at March 31, 2021 | $ | 100 | | | $ | 271,388 | | | $ | 271,191 | | | $ | 7,367 | | | $ | 550,046 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
See accompanying notes to unaudited consolidated financial statements.
ITEM 1. Financial Statements Continued:
NICOLET BANKSHARES, INC.
Consolidated Statements of Cash Flows (Unaudited)
| | | | | | | | | | | |
(In thousands) | Three Months Ended March 31, |
| 2022 | | 2021 |
Cash Flows From Operating Activities: | | | |
Net income | $ | 24,164 | | | $ | 18,239 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | |
Depreciation, amortization, and accretion | 6,769 | | | 2,719 | |
Provision for credit losses | 300 | | | 500 | |
Increase in cash surrender value of life insurance | (933) | | | (527) | |
Stock-based compensation expense | 1,799 | | | 1,341 | |
Asset (gains) losses, net | (1,313) | | | (711) | |
Gain on sale of loans held for sale, net | (2,377) | | | (7,255) | |
Net change due to: | | | |
Proceeds from sale of loans held for sale | 86,478 | | | 222,406 | |
Origination of loans held for sale | (88,304) | | | (211,701) | |
Accrued interest receivable and other assets | 6,786 | | | 9,719 | |
Accrued interest payable and other liabilities | (11,426) | | | 3,483 | |
Net cash provided by (used in) operating activities | 21,943 | | | 38,213 | |
Cash Flows From Investing Activities: | | | |
Net (increase) decrease in loans | (64,669) | | | (57,003) | |
Net (increase) decrease in certificates of deposit in other banks | 2,228 | | | 2,225 | |
Purchases of securities AFS | (5,017) | | | (48,402) | |
Purchases of securities HTM | (38,856) | | | — | |
Proceeds from sales of securities AFS | 3,400 | | | — | |
Proceeds from calls and maturities of securities AFS | 29,511 | | | 21,215 | |
Proceed from calls and maturities of securities HTM | 5,430 | | | — | |
Purchases of other investments | (10,953) | | | (89) | |
Proceeds from sales of other investments | 775 | | | 81 | |
| | | |
Proceeds from redemption of BOLI | 117 | | | — | |
Net (increase) decrease in premises and equipment | (1,953) | | | (485) | |
Net (increase) decrease in other real estate and other assets | 3,075 | | | 293 | |
Net cash (paid) received in branch sale | 147,833 | | | — | |
| | | |
Net cash provided by (used in) investing activities | 70,921 | | | (82,165) | |
Cash Flows From Financing Activities: | | | |
Net increase (decrease) in deposits | (229,862) | | | (9,710) | |
| | | |
| | | |
Repayments of long-term borrowings | (10,000) | | | (10,000) | |
Purchase and retirement of common stock | (54,433) | | | (4,625) | |
| | | |
Proceeds from issuance of common stock | 175 | | | 121 | |
Proceeds from exercise of stock options | 1,887 | | | 1,161 | |
| | | |
Net cash provided by (used in) financing activities | (292,233) | | | (23,053) | |
Net increase (decrease) in cash and cash equivalents | (199,369) | | | (67,005) | |
Cash and cash equivalents: | | | |
Beginning | 595,292 | | | 802,859 | |
Ending * | $ | 395,923 | | | $ | 735,854 | |
Supplemental Disclosures of Cash Flow Information: | | | |
Cash paid for interest | $ | 5,170 | | | $ | 3,492 | |
Cash paid for taxes | — | | | — | |
Transfer of loans and bank premises to other real estate owned | 432 | | | 302 | |
Capitalized mortgage servicing rights | 886 | | | 1,117 | |
| | | |
| | | |
| | | |
| | | |
| | | |
* Cash and cash equivalents at both March 31, 2022 and March 31, 2021, include restricted cash of $1.9 million pledged as collateral on interest rate swaps and no reserve balance was required with the Federal Reserve Bank.
See accompanying notes to unaudited consolidated financial statements.
NICOLET BANKSHARES, INC.
Notes to Unaudited Consolidated Financial Statements
Note 1 – Basis of Presentation
General
In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the consolidated balance sheets, statements of income, comprehensive income (loss), changes in stockholders’ equity and cash flows of Nicolet Bankshares, Inc. (the “Company” or “Nicolet”) and its subsidiaries, as of and for the periods presented, and all such adjustments are of a normal recurring nature. All material intercompany transactions and balances have been eliminated. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the entire year.
These interim consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission and, therefore, certain information and footnote disclosures normally presented in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been omitted or abbreviated. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.
Critical Accounting Policies and Estimates
Preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future. Estimates are used in accounting for, among other items, the allowance for credit losses, valuation of loans in acquisition transactions, useful lives for depreciation and amortization, fair value of financial instruments, impairment calculations, valuation of deferred tax assets, uncertain income tax positions and contingencies. Estimates that are particularly susceptible to significant change for the Company include the determination of the allowance for credit losses, the determination and assessment of deferred tax assets and liabilities, and the valuation of loans acquired in acquisition transactions; therefore, these are critical accounting policies. Factors that may cause sensitivity to the aforementioned estimates include but are not limited to: external market factors such as market interest rates and employment rates, changes to operating policies and procedures, changes in applicable banking or tax regulations, and changes to deferred tax estimates. Actual results may ultimately differ from estimates, although management does not generally believe such differences would materially affect the consolidated financial statements in any individual reporting period presented.
There have been no material changes or developments with respect to the assumptions or methodologies that the Company uses when applying what management believes are critical accounting policies and developing critical accounting estimates as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.
Future Accounting Pronouncements
In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings (“TDRs”) and Vintage Disclosures. This ASU eliminates the accounting guidance for TDRs by creditors, while enhancing the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The ASU also requires public business entities to expand the vintage disclosures to include gross charge-offs by year of origination. The updated guidance is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company is evaluating the impact of this ASU on its consolidated financial statements.
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. It provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The updated guidance is effective for all entities as of March 12, 2020 through December 31, 2022. The Company continues to evaluate the impact of reference rate reform on its consolidated financial statements.
Reclassifications
Certain amounts in the 2021 consolidated financial statements have been reclassified to conform to the 2022 presentation. These reclassifications were not material and did not impact previously reported net income or comprehensive income.
Note 2 – Acquisitions
Completed Acquisitions:
County Bancorp, Inc. (“County”): On December 3, 2021, Nicolet completed its merger with County, pursuant to the Agreement and Plan of Merger dated June 22, 2021 (the “County Merger Agreement”), at which time County merged with and
into Nicolet, and Investors Community Bank, the wholly owned bank subsidiary of County, was merged with and into Nicolet National Bank (the “Bank”), the wholly owned bank subsidiary of Nicolet.
Pursuant to the County Merger Agreement, each share of County common stock issued and outstanding immediately prior to the effective time of the merger was converted into the right to receive, at the election of the shareholder, either cash of $37.18 or 0.48 shares of Nicolet common stock, subject to proration procedures such that 1,237,000 shares of County common stock were exchanged for cash, and the remaining shares were exchanged for Nicolet common stock. As a result, Nicolet issued approximately 2.4 million shares of Nicolet common stock for stock consideration of $176 million and cash consideration of $48 million, or a total purchases price of $224 million. With the County merger, Nicolet became the premier agriculture lender throughout Wisconsin.
A summary of the assets acquired and liabilities assumed in the County transaction, as of the acquisition date, including the 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, resulting in the issuance of approximately 2.3 million shares of Nicolet common stock for stock consideration of $180 million and cash consideration of $49 million, or a total purchase price of $229 million. The Mackinac merger expanded Nicolet prominently into Northern Michigan and the Upper Peninsula of Michigan, and added to Nicolet’s presence in upper northeastern Wisconsin.
A summary of the assets acquired and liabilities assumed in the Mackinac transaction, as of the acquisition date, including the 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 (purchased credit deteriorated loans or “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, 2021, the beginning of the earliest period presented. The pro forma information should not be relied upon as being indicative of the historical results of operations the companies would have had if the acquisitions had occurred before such periods or the future results of operations that the companies will experience as a result of the mergers. The pro forma information, although helpful in illustrating the financial characteristics of the combined company under one set of assumptions, does not reflect the benefits of expected cost savings, opportunities to earn additional revenue, the impact of restructuring and merger-related expenses, or other factors that may result as a consequence of the mergers and, accordingly, does not attempt to predict or suggest future results.
| | | | | | | | |
| | Three Months Ended |
(In thousands, except per share data) | | March 31, 2021 |
Total revenue, net of interest expense | | $ | 81,307 | |
Net income | | $ | 16,661 | |
Diluted earnings per common share | | $ | 1.10 | |
Pending Acquisition:
Charter Bankshares, Inc. (“Charter”): On March 29, 2022, Nicolet entered into an Agreement and Plan of Merger with Charter (the “Charter Merger Agreement”) pursuant to which Charter will merge with and into Nicolet. Pursuant to the terms and subject to the conditions set forth in the Charter Merger Agreement, at the effective time of the merger, Charter shareholders will have the right to receive 15.458 shares of Nicolet common stock and $475 in cash for each share of Charter common stock. As a result, Nicolet expects to issue approximately 1.26 million shares of Nicolet common stock and $38.8 million in cash for the acquisition of Charter. At December 31, 2021, Charter had total assets of $1.1 billion. The merger is expected to close in the third quarter of 2022, subject to customary closing conditions, including approval by regulators.
Note 3 – Earnings per Common Share
Basic earnings per common share are calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common share are calculated by dividing net income by the weighted average number of shares adjusted for the dilutive effect of common stock awards (outstanding stock options and unvested restricted stock), if any. Presented below are the calculations for basic and diluted earnings per common share.
| | | | | | | | | | | | | | | |
| Three Months Ended March 31, | | |
(In thousands, except per share data) | 2022 | | 2021 | | | | |
Net income | $ | 24,164 | | | $ | 18,239 | | | | | |
Weighted average common shares outstanding | 13,649 | | | 9,998 | | | | | |
Effect of dilutive common stock awards | 566 | | | 405 | | | | | |
Diluted weighted average common shares outstanding | 14,215 | | | 10,403 | | | | | |
Basic earnings per common share* | $ | 1.77 | | | $ | 1.82 | | | | | |
Diluted earnings per common share* | $ | 1.70 | | | $ | 1.75 | | | | | |
*Cumulative quarterly per share performance may not equal annual per share totals due to the effects of the amount and timing of capital increases. When computing earnings per share for an interim period, the denominator is based on the weighted average shares outstanding during the interim period, and not on an annualized weighted average basis. Accordingly, the sum of the earnings per share data for the quarters will not necessarily equal the year to date earnings per share data.
For the three months ended March 31, 2022 and 2021, respectively, options to purchase less than 0.1 million shares are excluded from the calculation of diluted earnings per common share as the effect of their exercise would have been anti-dilutive.
Note 4 – Stock-Based Compensation
The Company may grant stock options and restricted stock under its stock-based compensation plans to certain officers, employees and directors. These plans are administered by a committee of the Board of Directors, and at March 31, 2022, approximately 0.8 million shares were available for grant under these stock-based compensation plans.
A Black-Scholes model is utilized to estimate the fair value of stock option grants, while the market price of the Company’s stock at the date of grant is used to estimate the fair value of restricted stock awards. The weighted average assumptions used in the Black-Scholes model for valuing stock option grants for the three months ended March 31, 2022 and 2021 were as follows.
| | | | | | | | | | | |
| Three Months Ended March 31, |
| 2022 | | 2021 |
Dividend yield | — | % | | — | % |
Expected volatility | 30 | % | | — | % |
Risk-free interest rate | 1.77 | % | | — | % |
Expected average life | 7 years | | 0 years |
Weighted average per share fair value of options | $ | 32.99 | | | $ | — | |
A summary of the Company’s stock option activity is summarized below.
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Stock Options | | Option Shares Outstanding | | Weighted Average Exercise Price | | Weighted Average Remaining Life (Years) | | Aggregate Intrinsic Value (in thousands) |
Outstanding - December 31, 2021 | | 1,833,246 | | | $ | 57.69 | | | | | |
Granted | | 30,429 | | | 93.68 | | | | | |
Exercise of stock options * | | (59,811) | | | 41.73 | | | | | |
Forfeited | | (4,500) | | | 78.67 | | | | | |
Outstanding - March 31, 2022 | | 1,799,364 | | | $ | 58.78 | | | 6.5 | | $ | 62,622 | |
Exercisable - March 31, 2022 | | 977,935 | | | $ | 48.90 | | | 5.1 | | $ | 43,690 | |
* The terms of the stock option agreements permit having a number of shares of stock withheld, the fair market value of which as of the date of exercise is sufficient to satisfy the exercise price and/or tax withholding requirements. For the three months ended March 31, 2022, 6,073 such shares were withheld by the Company.
Intrinsic value represents the amount by which the fair market value of the underlying stock exceeds the exercise price of the stock options. The intrinsic value of options exercised for the three months ended March 31, 2022 and 2021 was approximately $3.0 million and $1.3 million, respectively.
A summary of the Company’s restricted stock activity is summarized below.
| | | | | | | | | | | | | | |
Restricted Stock | | Weighted Average Grant Date Fair Value | | Restricted Shares Outstanding |
Outstanding - December 31, 2021 | | $ | 71.42 | | | 25,801 | |
Granted | | — | | | — | |
Vested * | | 63.28 | | | (1,100) | |
Forfeited | | — | | | — | |
Outstanding - March 31, 2022 | | $ | 71.78 | | | 24,701 | |
* The terms of the restricted stock agreements permit the surrender of shares to the Company upon vesting in order to satisfy applicable tax withholding requirements at the minimum statutory withholding rate, and accordingly, 210 shares were surrendered during the three months ended March 31, 2022.
The Company recognized approximately $1.8 million and $1.2 million of stock-based compensation expense (included in personnel on the consolidated statements of income) for the three months ended March 31, 2022 and 2021, respectively, associated with its common stock awards granted to officers and employees. In addition, during the three months ended March 31, 2021, the Company recognized approximately $0.1 million of director expense (included in other expense on the consolidated statements of income) for a total restricted stock grant of