NICOLET BANKSHARES INC, 10-K filed on 2/24/2023
Annual Report
v3.22.4
Cover - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Feb. 23, 2023
Jun. 30, 2022
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2022    
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 NIC    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 880
Entity Common Stock, Shares Outstanding   14,694,428  
Documents Incorporated by Reference Portions of the Proxy Statement (the “2023 Proxy Statement”) for the 2023 Annual Meeting of Shareholders to be held on May 15, 2023, are incorporated by reference into Part III of this Annual Report on Form 10-K.    
Entity Central Index Key 0001174850    
Amendment Flag false    
Document Fiscal Year Focus 2022    
Document Fiscal Period Focus FY    
v3.22.4
Audit Information
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Audit Information [Abstract]      
Auditor Name FORVIS, LLP (Formerly BKD, LLP) FORVIS, LLP (Formerly BKD, LLP) WIPFLI LLP
Auditor Location Springfield, Missouri Springfield, Missouri Atlanta, Georgia
Auditor Firm ID 686 686 344
v3.22.4
Consolidated Balance Sheets - USD ($)
Dec. 31, 2022
Dec. 31, 2021
Assets    
Cash and due from banks $ 121,211,000 $ 209,349,000
Interest-earning deposits 33,512,000 385,943,000
Federal funds sold 0 0
Cash and cash equivalents [1] 154,723,000 595,292,000
Certificates of deposit in other banks 12,518,000 21,920,000
Securities available for sale (“AFS”), at fair value 917,618,000 921,661,000
Securities held to maturity (“HTM”), at amortized cost 679,128,000 651,803,000
Other investments 65,286,000 44,008,000
Loans held for sale 1,482,000 6,447,000
Other assets held for sale 0 199,833,000
Loans 6,180,499,000 4,621,836,000
Allowance for credit losses - loans (“ACL-Loans”) (61,829,000) (49,672,000)
Loans, net 6,118,670,000 4,572,164,000
Premises and equipment, net 108,956,000 94,566,000
Bank owned life insurance (“BOLI”) 165,137,000 134,476,000
Goodwill and other intangibles, net 402,438,000 339,492,000
Accrued interest receivable and other assets 138,013,000 113,375,000
Total assets 8,763,969,000 7,695,037,000
Liabilities:    
Noninterest-bearing demand deposits 2,361,816,000 1,975,705,000
Interest-bearing deposits 4,817,105,000 4,490,211,000
Total deposits 7,178,921,000 6,465,916,000
Short-term borrowings 317,000,000 0
Long-term borrowings 225,342,000 216,915,000
Other liabilities held for sale 0 51,586,000
Accrued interest payable and other liabilities 70,177,000 68,729,000
Total liabilities 7,791,440,000 6,803,146,000
Stockholders’ Equity:    
Common stock 147,000 140,000
Additional paid-in capital 621,988,000 575,045,000
Retained earnings 407,864,000 313,604,000
Accumulated other comprehensive income (loss) (57,470,000) 3,102,000
Total stockholders’ equity 972,529,000 891,891,000
Total liabilities and stockholders’ equity $ 8,763,969,000 $ 7,695,037,000
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) 14,690,614 13,994,079
Common shares issued (in shares) 14,764,104 14,019,880
[1] Cash and cash equivalents at December 31, 2022 did not include any restricted cash. At both December 31, 2021 and 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.
v3.22.4
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2022
Dec. 31, 2021
Statement of Financial Position [Abstract]    
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
v3.22.4
Consolidated Statements of Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Interest income:      
Loans, including loan fees $ 243,680 $ 156,559 $ 136,372
Investment securities:      
Taxable 21,383 9,934 8,118
Tax-exempt 4,418 2,157 2,101
Other interest income 4,437 2,909 2,611
Total interest income 273,918 171,559 149,202
Interest expense:      
Deposits 21,752 10,448 16,641
Short-term borrowings 3,246 1 66
Long-term borrowings 8,959 3,155 3,157
Total interest expense 33,957 13,604 19,864
Net interest income 239,961 157,955 129,338
Provision for credit losses 11,500 14,900 10,300
Net interest income after provision for credit losses 228,461 143,055 119,038
Noninterest income:      
Mortgage income, net 8,497 22,155 29,807
BOLI income 3,818 2,380 2,710
Asset gains (losses), net 3,130 4,181 (1,805)
Deferred compensation plan asset market valuations (2,040) 609 590
LSR income, net (1,366) 0 0
Other income 7,264 3,936 3,902
Total noninterest income 57,920 67,364 62,626
Noninterest expense:      
Personnel 88,713 70,618 57,121
Occupancy, equipment and office 29,722 21,058 16,718
Business development and marketing 8,472 5,403 5,396
Data processing 14,518 11,990 10,495
Intangibles amortization 6,616 3,494 3,567
FDIC assessments 1,920 2,035 707
Merger-related expense 1,664 5,651 1,020
Other expense 9,019 9,048 5,695
Total noninterest expense 160,644 129,297 100,719
Income before income tax expense 125,737 81,122 80,945
Income tax expense 31,477 20,470 20,476
Net income 94,260 60,652 60,469
Less: Net income attributable to noncontrolling interest 0 0 347
Net income attributable to Nicolet Bankshares, Inc. $ 94,260 $ 60,652 $ 60,122
Earnings per common share:      
Basic (in dollars per share) $ 6.78 $ 5.65 $ 5.82
Diluted (in dollars per share) $ 6.56 $ 5.44 $ 5.70
Weighted average common shares outstanding:      
Basic (in shares) 13,909,299 10,735,605 10,337,138
Diluted (in shares) 14,374,931 11,144,866 10,541,251
Trust services fee income      
Noninterest income:      
Fees and commissions $ 7,947 $ 7,774 $ 6,463
Brokerage fee income      
Noninterest income:      
Fees and commissions 12,923 12,143 9,753
Service charges on deposit accounts      
Noninterest income:      
Fees and commissions 6,104 5,023 4,208
Card interchange income      
Noninterest income:      
Fees and commissions $ 11,643 $ 9,163 $ 6,998
v3.22.4
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Statement of Comprehensive Income [Abstract]      
Net income $ 94,260 $ 60,652 $ 60,469
Unrealized gains (losses) on securities AFS:      
Net unrealized holding gains (losses) (83,219) (13,495) 11,803
Net realized (gains) losses included in income 244 283 (395)
Income tax (expense) benefit 22,403 3,567 (3,079)
Total other comprehensive income (loss), net of tax (60,572) (9,645) 8,329
Comprehensive income (loss) $ 33,688 $ 51,007 $ 68,798
v3.22.4
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 Stock
County Bancorp, Inc.
Common Stock
Mackinac Financial Corporation
Additional Paid-In Capital
Additional Paid-In Capital
County Bancorp, Inc.
Additional Paid-In Capital
Mackinac Financial Corporation
Retained Earnings
Retained Earnings
Cumulative Effect, Period of Adoption, Adjustment
Accumulated Other Comprehensive Income (Loss)
Non- controlling Interest
Beginning balance at Dec. 31, 2019 $ 516,990     $ (6,175) $ 106     $ 312,733     $ 199,005 $ (6,175) $ 4,418 $ 728
Comprehensive income:                            
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
Comprehensive income:                            
Net income 94,260                   94,260     0
Other comprehensive income (loss) (60,572)                       (60,572)  
Stock-based compensation expense 7,016             7,016            
Exercise of stock options, net 2,531       1     2,530            
Common stock issued in acquisitions 98,149       13     98,136            
Issuance of common stock 751             751            
Purchase and retirement of common stock (61,497)       (7)     (61,490)            
Ending balance at Dec. 31, 2022 $ 972,529       $ 147     $ 621,988     $ 407,864   $ (57,470) $ 0
v3.22.4
Consolidated Statements of Changes in Stockholders' Equity (Parentheticals)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
USD ($)
County Bancorp, Inc.  
Common stock issued, capitalized Issuance costs $ 397
Mackinac Financial Corporation  
Common stock issued, capitalized Issuance costs $ 392
v3.22.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Cash Flows From Operating Activities:      
Net income $ 94,260 $ 60,652 $ 60,469
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation, amortization and accretion 21,930 13,857 10,685
Provision for credit losses 11,500 14,900 10,300
Provision for deferred taxes (12,907) 6,332 3,127
Increase in cash surrender value of life insurance (3,701) (2,380) (2,199)
Stock-based compensation expense 7,016 7,307 5,700
Assets (gains) losses, net (3,130) (4,181) 1,805
Gain on sale of loans held for sale, net (4,888) (20,468) (29,966)
Proceeds from sale of loans held for sale 208,296 650,573 854,608
Origination of loans held for sale (200,770) (619,431) (848,337)
Net change in accrued interest receivable and other assets 73 (10,531) 6,991
Net change in accrued interest payable and other liabilities (283) 1,024 5,716
Net cash provided by (used in) operating activities 117,396 97,654 78,899
Cash Flows From Investing Activities:      
Net (increase) decrease in certificates of deposit in other banks 9,411 10,968 9,167
Purchases of securities AFS (8,623) (299,746) (170,518)
Purchases of securities HTM (56,479) (569,910) 0
Proceeds from sales of securities AFS 28,438 42,973 19,045
Proceeds from calls, paydowns, and maturities of investment securities AFS 104,063 167,024 94,818
Proceeds from calls, paydowns, and maturities of investment securities HTM 28,306 0 0
Net (increase) decrease in loans (731,904) (76,427) (125,020)
Purchases of other investments (24,999) (13,432) (4,360)
Proceeds from sales of other investments 13,138 10,203 0
Net (increase) decrease in premises and equipment (12,234) (12,791) (10,791)
Net (increase) decrease in other real estate 13,150 2,743 343
Proceeds from redemption of BOLI 1,757 0 440
Net cash (paid) received in branch sale 147,833 0 0
Net cash (paid) received in business combination (28,221)   (21,820)
Net cash (paid) received in business combination   367,797  
Net cash provided by (used in) investing activities (516,364) (370,598) (208,696)
Cash Flows From Financing Activities:      
Net increase (decrease) in deposits (147,520) 210,375 815,094
Net increase (decrease) in short-term borrowings 184,134 0 0
Proceeds from long-term borrowings 0 103,953 367,842
Repayments of long-term borrowings (20,000) (187,961) (384,091)
Distribution to noncontrolling interest 0 0 (215)
Purchase of noncontrolling interest 0 0 (8,000)
Capitalized issuance costs, net 0 (789) 0
Purchase and retirement of common stock (61,497) (62,583) (42,088)
Proceeds from issuance of common stock, net 3,282 2,382 2,055
Net cash provided by (used in) financing activities (41,601) 65,377 750,597
Net increase (decrease) in cash and cash equivalents (440,569) (207,567) 620,800
Cash and cash equivalents:      
Beginning cash and cash equivalents 595,292 [1] 802,859 [1] 182,059
Ending cash and cash equivalents [1] 154,723 595,292 802,859
Supplemental Disclosures of Cash Flow Information:      
Cash paid for interest 37,433 10,882 23,485
Cash paid for taxes 33,560 24,341 21,969
Transfer of loans and bank premises to other real estate owned 612 8,177 2,608
Capitalized mortgage servicing rights 2,327 4,329 5,256
Acquisitions:      
Fair value of assets acquired 1,121,000 2,968,000 160,000
Fair value of liabilities assumed 1,034,000 2,666,000 146,000
Net assets acquired 87,000 302,000 14,000
Common stock issued in acquisitions $ 98,149 $ 355,378 $ 0
[1] Cash and cash equivalents at December 31, 2022 did not include any restricted cash. At both December 31, 2021 and December 31, 2020, cash and cash equivalents included restricted cash of $1.9 million pledged as collateral on interest rate swaps and no reserve balance was required with the Federal Reserve.
v3.22.4
Consolidated Statements of Cash Flows (Parenthetical) - USD ($)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Statement of Cash Flows [Abstract]      
Restricted cash pledged as collateral $ 0 $ 1,900,000 $ 1,900,000
v3.22.4
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES
 12 Months Ended
Dec. 31, 2022
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.

At December 31, 2022, the Company had three wholly owned subsidiaries, the Bank, Nicolet Advisory Services, LLC (“Nicolet Advisory”), and Nicolet Insurance Services, LLC (“Nicolet Insurance”). 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 Wisconsin, Michigan and Minnesota, 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.

At December 31, 2022, 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.

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. 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.

Because the Company is not the primary beneficiary, the consolidated financial statements exclude the following wholly-owned variable interest entities: Mid-Wisconsin Statutory Trust, Baylake Capital Trust II, First Menasha Bancshares Statutory Trust I, First Menasha Bancshares Statutory Trust II, County Bancorp Statutory Trust II, County Bancorp Statutory Trust III, and Fox River Valley Trust I.

Operating Segment: The Bank represents the primary operating segment (as discussed above). 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: In preparing the accompanying consolidated financial statements in conformity with U.S. GAAP, the Company’s management is required to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the disclosures provided. Actual results may differ from these estimates. Material estimates that are particularly susceptible to significant change in the near-term include the fair value of securities available for sale, the determination of the allowance for credit losses, business combinations accounting and the fair value of assets acquired and liabilities assumed, goodwill, and income taxes.
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.

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, 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, and the Bank has not experienced any losses in such accounts.

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 of an ACL.

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.

Other Investments: Other investments include equity securities with readily determinable fair values, “restricted” equity securities, and 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 lien 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, 2022 and 2021, 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.

A description of each segment of the loan portfolio, including the corresponding credit risk, is included below.

Commercial and industrial loans consist primarily of commercial loans to small and mid-sized businesses within a diverse range of industries (manufacturing, wholesaling, paper, packaging, food production and processing, retail, service, and businesses supporting the general building industry). These loans are made for a wide variety of general corporate purposes, including working capital, equipment, and business expansion loans, with varying terms based upon the underlying purpose of the loan. Commercial and industrial loans are based primarily on the historical and projected cash flow of the underlying borrower, and secondarily on any underlying assets pledged by the borrower. The credit risk related to commercial and industrial loans is largely influenced by general economic conditions and the resulting impact on a borrower’s operations, or on the value of underlying collateral, if any. Credit risk is managed by employing sound underwriting guidelines, lending primarily to borrowers in local markets, formally reviewing the borrower’s financial condition on an ongoing basis, and generally require a guarantee (in full or part) from the primary business owners. Commercial bankers utilize SBA programs, where appropriate, as Nicolet is a preferred SBA lender.

Owner-occupied CRE loans primarily consist of loans within a diverse range of industries secured by business real estate that is occupied by borrowers who operate their businesses out of the underlying collateral and who may also have commercial and industrial loans. The credit risk related to owner-occupied CRE loans is largely influenced by general economic conditions and the resulting impact on a borrower’s operations, or on the value of underlying collateral. Credit risk is managed by employing sound underwriting guidelines, lending primarily to borrowers in local markets, periodically evaluating the underlying collateral, formally reviewing the borrower’s financial performance on an ongoing basis, and generally require a guarantee (in full or part) from the primary business owners.

Agricultural loans consist of loans secured by farmland and the related farming operations, primarily within the dairy industry. These loans support short-term needs (planting crops or buying feed), as well as longer term needs (fund cattle, equipment or real estate purchases and improvements) of our agricultural customers. The credit risk related to agricultural loans is largely influenced by the agricultural economy, including market prices for the cost of feed and the price of milk, and/or the underlying value of the farmland. Credit risk is managed by employing sound underwriting guidelines, regular personal contact with our agricultural customers, formally reviewing the borrower’s financial condition on an ongoing basis, and generally require a guarantee (in full or part) from the primary business owners. Agricultural bankers utilize FSA programs, where appropriate, as Nicolet is a preferred FSA lender.
The CRE investment loan classification primarily includes commercial-based mortgage loans that are secured by non-owner occupied, nonfarm/nonresidential real estate properties, and multi-family residential properties. Lending in this segment is focused on loans that are secured by commercial income-producing properties as opposed to speculative real estate development. The credit risk related to CRE investment loans is influenced by the cash flows of the properties, including vacancy experience, credit capacity of the tenants occupying the real estate, and general economic conditions, all of which may impact the borrower’s operations or the value of underlying collateral. Credit risk is managed by employing sound underwriting guidelines, lending primarily to borrowers in local markets, periodically evaluating the underlying collateral, regularly reviewing the borrower’s financial condition, and generally require a guarantee (in full or part) from the principals.

Construction and land development loans provide financing for the development of commercial income properties, multi-family residential development, and land designated for future development. The credit risk on construction loans depends largely upon the accuracy of the initial estimate of the property’s value at completion of construction and the estimated cost of construction. Nicolet controls the credit risk on these types of loans by making loans in familiar markets, reviewing the merits of individual projects, controlling loan structure, and monitoring the progress of projects through the analysis of construction advances. Credit risk is managed by employing sound underwriting guidelines, lending primarily to borrowers in local markets, periodically evaluating the underlying collateral, formally reviewing the borrower’s financial soundness and relationships on an ongoing basis, and generally require a guarantee (in full or part) from the principals.

Residential real estate includes residential first mortgage loans and residential junior mortgage loans (home equity lines and term loans secured by junior mortgage liens). Residential real estate also includes residential construction loans. As part of its management of originating residential mortgage loans, Nicolet generally sells the majority of its long-term, fixed-rate residential first mortgage loans in the secondary market with the servicing rights retained, and retains the adjustable-rate mortgage loans in its loan portfolio. The Company may also retain a portion of the long-term, fixed rate residential mortgage loans that do not conform with secondary market standards, but do meet other specific underwriting guidelines. Credit risk for residential real estate loans largely depends upon factors affecting the borrower’s ability to repay as well as general economic trends. Residential real estate loan underwriting is subject to specific regulations, and Nicolet typically underwrites these loans to conform with those widely accepted standards. Residential real estate loans typically have longer terms and higher balances with lower yields, but generally carry lower risks of default.

Retail loans include predominantly credit cards and other personal installment loans to individuals within Nicolet’s market areas. Retail loans are centrally underwritten utilizing the borrower’s financial history and information on the underlying collateral. Retail loans typically have shorter terms and lower balances with higher yields, but generally carry higher risks of default. Collection of these loans depends on the borrower’s financial stability, and is more likely to be affected by adverse personal circumstances.

Loans – Acquired: Loans purchased in acquisition transactions are acquired loans, and are recorded at their estimated fair value on the acquisition date.
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.

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.

The Company uses the current expected credit loss model (“CECL”) to estimate the ACL-Loans. This model considers historical loss rates and other qualitative adjustments, as well as a 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: evaluation of facts and issues related to specific loans; management’s ongoing review and grading of the loan portfolio; consideration of historical loan loss and delinquency experience on each portfolio segment; trends in past due and nonaccrual loans; the risk characteristics of the various loan segments; changes in the size and character of the loan portfolio; concentrations of loans to specific borrowers or industries; existing economic conditions; the fair value of underlying collateral; and 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.

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.

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.

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.

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 on the consolidated balance sheets), while the operating lease liability represents the obligation to make lease payments arising from the lease (included in accrued interest payable and other liabilities on the consolidated balance sheets). The ROU asset and lease liability are recognized at lease commencement based on the present value of the remaining lease payments, considering a discount rate that represents Nicolet’s incremental borrowing rate. Operating lease expense is recognized on a straight-line basis over the lease term and is recognized in occupancy, equipment, and office on the consolidated statements of income.

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.

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.

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.

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 loans 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).
At each reporting date, the MSR asset is assessed for impairment based on the estimated fair value, which considers the estimated prepayment speeds and stratifications based on the risk characteristics of the underlying loans serviced (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.  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 direct write-down permanently reduces the carrying value of the MSRs and valuation allowance, precluding subsequent recoveries. 

Loan Servicing Rights (“LSRs”):  The Company acquired loan servicing rights in connection with its acquisition of County Bancorp, Inc. (“County”) on December 3, 2021. 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 allowance, 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 servicing loans is based on a contractual percentage of the outstanding principal and is recorded as income when earned.

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.

Partnership Investments: The Company has invested in certain tax-advantaged projects promoting renewable energy. These investments are designed to generate returns primarily through the realization of federal and state income tax credits and other tax benefits. Such investments are accounted for using the equity method where the Company owns less than fifty percent and has the ability to exercise significant influence over the partnership, while investments where the Company does not have the ability to exercise significant influence are accounted for at fair value less impairment (if any) or cost less impairment if the fair value is not readily determinable. The Company uses the hypothetical liquidation book value (“HLBV”) method for equity investments when the liquidation rights and priorities as defined by an equity investment agreement differ from what is reflected by the underlying percentage ownership interests. The HLBV method is commonly applied to equity investments in the renewable energy industry, where the economic benefits corresponding to an equity investment that may vary at different points in time and / or are not directly linked to an investor’s ownership percentage. A calculation is prepared at each balance sheet date to determine the amount that the Company would receive if any equity investment entity were to liquidate all of its assets (as valued in accordance with U.S. GAAP) and distribute that cash to the investors based on the contractually defined liquidation priorities. The balance of these investments at December 31, 2022 was $7.6 million and is included in accrued interest receivable and other assets on the consolidated balance sheets. There was no similar investment at December 31, 2021.

Stock-based Compensation: Stock-based payments to employees, including grants of restricted stock or stock options, are valued at fair value of the award on the date of grant and expensed on a straight-line basis as compensation expense over the applicable vesting period. A Black-Scholes model is utilized to estimate the fair value of stock options and the quoted market price of the Company’s stock at the date of grant is used to estimate the fair value of restricted stock awards.

Income Taxes: The Company files a consolidated federal income tax return with its wholly owned subsidiaries and files state income tax returns with the various taxing jurisdictions based on its taxable presence. Amounts equal to tax benefits of those subsidiaries having taxable federal or state losses or credits are reimbursed by the entities that incur federal or state 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.

The Company may also recognize a liability for unrecognized tax benefits from uncertainty in income tax positions. Unrecognized tax benefits represent the differences between a tax position taken or expected to be taken in a tax return and the benefit recognized and measured in the consolidated financial statements. At December 31, 2022, the Company determined it had no significant uncertainty in income tax positions. Interest and penalties related to unrecognized tax benefits are classified as income tax expense.

At December 31, 2022, the Company was not under examination by any taxing authority.

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 includes the dilutive effect of outstanding common stock awards unless the impact is anti-dilutive, by application of the treasury stock method.

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: 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: 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 entity expects to be entitled in exchange for those goods and services. The guidance includes a five-step model to apply to revenue recognition, consisting of the following: (1) identify the contract; (2) identify the performance obligation in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue when or as the performance obligation is satisfied. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities, as well as certain noninterest income categories, such as gains or losses associated with mortgage servicing rights and income from BOLI. Descriptions of the Company’s primary revenue contracts within the scope of Topic 606 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).

Future Accounting Pronouncements: In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings (“TDRs”) and Vintage Disclosures. This ASU eliminates the accounting guidance for TDRs by creditors, while enhancing the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The ASU also requires public business entities to expand the vintage disclosures to include gross charge-offs by year of origination. The updated guidance is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. Adoption of this amendment is not expected to have a material impact on the Company’s consolidated financial statements; though, it will result in new disclosures of gross charge-offs by year of origination and on the types of loan modifications to borrowers experiencing financial difficulties. Current TDR disclosures will also be removed.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. It provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In December 2022, the FASB issued ASU ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which defers the sunset date of the original guidance from December 31, 2022 to December 31, 2024. The Company continues to work through the cessation of LIBOR, including the modification of its loans and other financial instruments with attributes that are either directly or indirectly influenced by LIBOR. The Company expects to utilize the reference rate reform transition guidance, as applicable, and does not expect such adoption to have a material impact on its consolidated financial statements or financial disclosures. The Company will continue to assess the impact as the reference rate transition approaches June 30, 2023.

Reclassifications: Certain amounts in the 2021 and 2020 consolidated financial statements have been reclassified to conform to the 2022 presentation.
v3.22.4
ACQUISITIONS
 12 Months Ended
Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]  
ACQUISITIONS ACQUISITIONS
Completed Acquisitions:
Charter Bankshares, Inc. (“Charter”): On August 26, 2022, Nicolet completed its merger with Charter, pursuant to the Agreement and Plan of Merger dated March 29, 2022 (the “Charter Merger Agreement”), at which time Charter merged with and into Nicolet, and Charter Bank, the wholly owned bank subsidiary of Charter, was merged with and into the Bank.

Pursuant to the Charter Merger Agreement, each share of Charter common stock issued and outstanding immediately prior to the effective time of the merger was converted into the right to receive 15.458 shares of Nicolet common stock and $475 in cash. As a result, Nicolet issued approximately 1.26 million shares of Nicolet common stock for stock consideration of $98 million and cash consideration of $39 million, or a total purchase price of $137 million. With the Charter merger, Nicolet expanded into Western Wisconsin and Minnesota.
A summary of the assets acquired and liabilities assumed in the Charter transaction, as of the acquisition date, including the preliminary purchase price allocation was as follows.

(In millions, except share data)Acquired from CharterFair Value AdjustmentsEstimated Fair Value
Assets Acquired:
Cash and cash equivalents$10 $— $10 
Investment securities218 — 218 
Loans848 (21)827 
ACL-Loans(9)7 (2)
Premises and equipment9 1 10 
BOLI29 — 29 
Core deposit intangible— 19 19 
Other assets5 5 10 
     Total assets$1,110 $11 $1,121 
Liabilities Assumed:
Deposits$869 $1 $870 
Borrowings161 — 161 
Other liabilities3 — 3 
     Total liabilities$1,033 $1 $1,034 
Net assets acquired$87 
Purchase Price:
Nicolet common stock issued (in shares)1,262,360 
Value of Nicolet common stock consideration$98 
Cash consideration paid39 
    Total purchase price$137 
Preliminary goodwill$50 

The Company purchased loans through the acquisition of Charter for which there was, at the date of acquisition, more than insignificant deterioration of credit quality since origination (purchased credit deteriorated loans or “PCD” loans). The carrying amount of these loans at acquisition was as follows.

(In thousands)August 26, 2022
Purchase price of PCD loans at acquisition$24,031 
Allowance for credit losses on PCD loans at acquisition1,709 
Par value of PCD acquired loans at acquisition$25,740 

The Company accounted for the Charter acquisition under the acquisition method of accounting, and thus, the financial position and results of operations of Charter prior to the consummation date were not included in the accompanying consolidated financial statements. The accounting required assets purchased and liabilities assumed to be recorded at their respective estimated fair values at the date of acquisition. The estimated fair value was determined with the assistance of third party valuations, appraisals, and third party advisors. 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 Charter 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.

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 purchase price allocation was as follows.

(In millions, except share data)Acquired from CountyFair Value AdjustmentsEstimated Fair Value
Assets Acquired:
Cash and cash equivalents$20 $— $20 
Investment securities301 (1)300 
Loans1,015 (1)1,014 
ACL-Loans(11)8 (3)
Premises and equipment21 (4)17 
BOLI33 — 33 
Core deposit intangible— 7 7 
Loan servicing rights20 — 20 
Other assets6 (2)4 
     Total assets$1,405 $7 $1,412 
Liabilities Assumed:
Deposits$1,027 $3 $1,030 
Borrowings218 1 219 
Other liabilities8 — 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 paid48 
    Total purchase price$224 
Write-off prior investment in County(1)
Goodwill$70 

The Company purchased loans through the acquisition of County for which there was, at the date of acquisition, more than insignificant deterioration of credit quality since origination (PCD loans). The carrying amount of these loans at acquisition was as follows.

(In thousands)December 3, 2021
Purchase price of PCD loans at acquisition$64,720 
Allowance for credit losses on PCD loans at acquisition3,490 
Par value of PCD acquired loans at acquisition$68,210 

The Company accounted for the County acquisition under the acquisition method of accounting, and thus, the financial position and results of operations of County prior to the consummation date were not included in the accompanying consolidated financial statements. The accounting required assets purchased and liabilities assumed to be recorded at their respective estimated fair values at the date of acquisition. The estimated fair value was determined with the assistance of third party valuations, appraisals, and third party advisors. Goodwill arising as a result of the County acquisition is not deductible for tax purposes.
Mackinac Financial Corporation (“Mackinac”): On September 3, 2021, Nicolet completed its merger with Mackinac, pursuant to the terms of the Agreement and Plan of Merger dated April 12, 2021 (the “Mackinac Merger Agreement”), at which time Mackinac merged with and into Nicolet, and mBank, the wholly owned bank subsidiary of Mackinac, was merged with and into the Bank.

Pursuant to the Mackinac Merger Agreement, Mackinac shareholders received fixed consideration of 0.22 shares of Nicolet common stock and $4.64 in cash for each share of Mackinac common stock owned (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 purchase price allocation was as follows.

(In millions, except share data)Acquired from MackinacFair Value AdjustmentsEstimated Fair Value
Assets Acquired:
Cash and cash equivalents$448 $— $448 
Investment securities104 — 104 
Loans930 10 940 
ACL-Loans(6)4 (2)
Premises and equipment24 (3)21 
BOLI16 — 16 
Goodwill20 (20)— 
Other intangibles4 3 7 
Other assets25 (3)22 
     Total assets$1,565 $(9)$1,556 
Liabilities Assumed:
Deposits$1,365 $1 $1,366 
Borrowings28 1 29 
Other liabilities13 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 paid49 
    Total purchase price$229 
Write-off prior investment in Mackinac(2)
Goodwill$84 

The Company purchased loans through the acquisition of Mackinac for which there was, at the date of acquisition, more than insignificant deterioration of credit quality since origination (PCD loans). The carrying amount of these loans at acquisition was as follows.

(In thousands)September 3, 2021
Purchase price of PCD loans at acquisition$10,605 
Allowance for credit losses on PCD loans at acquisition1,896 
Par value of PCD acquired loans at acquisition$12,501 

The Company accounted for the Mackinac acquisition under the acquisition method of accounting, and thus, the financial position and results of operations of Mackinac prior to the consummation date were not included in the accompanying consolidated financial statements. The accounting required assets purchased and liabilities assumed to be recorded at their respective estimated fair values
at the date of acquisition. The estimated fair value was determined with the assistance of third party valuations, appraisals, and third party advisors. Goodwill arising as a result of the Mackinac acquisition is not deductible for tax purposes.

Summary Unaudited Pro Forma Information: The following unaudited pro forma information is presented for illustrative purposes only, and gives effect to the acquisitions of County and Mackinac as if the acquisitions had occurred on January 1, 2020, 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, 2021December 31, 2020
Total revenue, net of interest expense$320,307 $308,325 
Net income$87,860 $77,641 
Diluted earnings per common share$5.91 $5.21 

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.
v3.22.4
SECURITIES AND OTHER INVESTMENTS
 12 Months Ended
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
SECURITIES AND OTHER INVESTMENTS SECURITIES AND OTHER INVESTMENTS
Securities
Securities are classified as AFS or HTM on the consolidated balance sheets at the time of purchase. AFS securities include those securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity, and are carried at fair value on the consolidated balance sheets. HTM securities include those securities which the Company has both the positive intent and ability to hold to maturity, and are carried at amortized cost on the consolidated balance sheets.
The amortized cost and fair value of securities available for sale and held to maturity are summarized as follows.
 December 31, 2022
(in thousands)Amortized
Cost		Gross Unrealized GainsGross Unrealized LossesFair
Value
Securities AFS:
U.S. Treasury securities$192,116 $— $8,286 $183,830 
U.S. government agency securities2,133 — 33 2,100 
State, county and municipals433,733 123 35,668 398,188 
Mortgage-backed securities227,650 10 26,728 200,932 
Corporate debt securities140,712 3 8,147 132,568 
 $996,344 $136 $78,862 $917,618 
Securities HTM:
U.S. Treasury securities$497,648 $— $35,722 $461,926 
U.S. government agency securities8,744 46 — 8,790 
State, county and municipals34,874 — 3,349 31,525 
Mortgage-backed securities137,862 — 16,751 121,111 
$679,128 $46 $55,822 $623,352 
 December 31, 2021
(in thousands)Amortized
Cost		Gross Unrealized GainsGross Unrealized LossesFair
Value
Securities AFS:
U.S. Treasury securities$191,507 $— $1,235 $190,272 
U.S. government agency securities999 6 — 1,005 
State, county and municipals311,717 3,222 2,202 312,737 
Mortgage-backed securities270,017 3,090 1,845 271,262 
Corporate debt securities143,172 3,459 246 146,385 
 $917,412 $9,777 $5,528 $921,661 
Securities HTM:
U.S. Treasury securities$496,939 $— $2,738 $494,201 
U.S. government agency securities11,871 — 2 11,869 
State, county and municipals42,876 10 173 42,713 
Mortgage-backed securities100,117 89 595 99,611 
$651,803 $99 $3,508 $648,394 
All mortgage-backed securities included in the tables above were issued by U.S. government agencies and corporations. Securities with a fair value of $883 million and $277 million as of December 31, 2022 and 2021, respectively, were pledged as collateral to secure public deposits and borrowings, as applicable, and for liquidity or other purposes as required by regulation. Accrued interest on securities totaled $6 million and $5 million at December 31, 2022 and 2021, respectively, and is included in accrued interest receivable and other assets on the consolidated balance sheets.

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, 2022
 Less than 12 months12 months or moreTotal
($ in thousands)Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses		Number of Securities
Securities AFS:
U.S. Treasury securities$448 $14 $183,382 $8,272 $183,830 $8,286 9 
U.S. government agency securities2,083 32 17 1 2,100 33 9 
State, county and municipals277,546 18,041 86,569 17,627 364,115 35,668 812 
Mortgage-backed securities102,108 11,320 95,614 15,408 197,722 26,728 376 
Corporate debt securities114,887 6,186 12,938 1,961 127,825 8,147 90 
 $497,072 $35,593 $378,520 $43,269 $875,592 $78,862 1,296 
Securities HTM:
U.S. Treasury securities$— $— $461,926 $35,722 $461,926 $35,722 6 
State, county and municipals17,591 1,594 11,654 1,755 29,245 3,349 58 
Mortgage-backed securities68,108 8,029 53,003 8,722 121,111 16,751 106 
$85,699 $9,623 $526,583 $46,199 $612,282 $55,822 170 
 December 31, 2021
 Less than 12 months12 months or moreTotal
($ in thousands)Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses		Number of Securities
Securities AFS:
U.S. Treasury securities$190,272 $1,235 $— $— $190,272 $1,235 8 
U.S. government agency securities160 — — — 160 — 3 
State, county and municipals103,950 2,119 1,777 83 105,727 2,202 132 
Mortgage-backed securities137,561 1,616 6,068 229 143,629 1,845 159 
Corporate debt securities23,267 246 — — 23,267 246 13 
 $455,210 $5,216 $7,845 $312 $463,055 $5,528 315 
Securities HTM:
U.S. Treasury securities$494,201 $2,738 $— $— $494,201 $2,738 6 
U.S. government agency securities11,737 2 — — 11,737 2 3 
State, county and municipals30,898 173 — — 30,898 173 46 
Mortgage-backed securities69,333 595 — — 69,333 595 72 
$606,169 $3,508 $— $— $606,169 $3,508 127 
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, 2022, 2021, and 2020, no allowance for credit losses on securities AFS was recognized.

The Company evaluated the securities HTM and determined no allowance for credit losses was necessary at December 31, 2022 and 2021. The U.S. Treasury and U.S. government agency securities are guaranteed by the U.S. government. For the state, county and municipal securities, management considered 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.

The amortized cost and fair value of investment securities by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties; as this is particularly inherent in mortgage-backed securities, these securities are not included in the maturity categories below.
As of December 31, 2022
Securities AFSSecurities HTM
(in thousands)Amortized CostFair ValueAmortized CostFair Value
Due in less than one year$222,169 $218,033 $1,774 $1,748 
Due in one year through five years172,291 163,466 513,181 476,365 
Due after five years through ten years229,760 203,039 22,600 20,485 
Due after ten years144,474 132,148 3,711 3,643 
 768,694 716,686 541,266 502,241 
Mortgage-backed securities227,650 200,932 137,862 121,111 
   Total$996,344 $917,618 $679,128 $623,352 
Proceeds and realized gains / losses from the sale of securities AFS were as follows.
 Years Ended December 31,
(in thousands)202220212020
Gross gains$28 $5 $395 
Gross losses(272)(288)— 
   Gains (losses) on sales of securities AFS, net$(244)$(283)$395 
Proceeds from sales of securities AFS *$28,438 $42,973 $19,045 
* Includes proceeds of $21 million recognized on the sale of securities AFS upon acquisition of Charter for which no gain or loss was recognized in the income statement as the investment securities were marked to fair value through purchase accounting.
Other Investments
Other investments include “restricted” equity securities, equity securities with readily determinable fair values, and private company securities. The carrying value of other investments are summarized as follows.
(in thousands)December 31, 2022December 31, 2021
Federal Reserve Bank stock$32,219 $20,973 
FHLB stock18,625 10,545 
Equity securities with readily determinable fair values4,376 5,660 
Other investments10,066 6,830 
   Total other investments$65,286 $44,008 
v3.22.4
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY
 12 Months Ended
Dec. 31, 2022
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, 2022December 31, 2021
(in thousands)Amount% of TotalAmount% of Total
Commercial & industrial$1,304,819 21 %$1,042,256 23 %
Owner-occupied commercial real estate (“CRE”)954,599 15 787,189 17 
Agricultural1,088,607 18 794,728 17 
  Commercial3,348,025 54 2,624,173 57 
CRE investment1,149,949 19 818,061 18 
Construction & land development318,600 5 213,035 5 
  Commercial real estate1,468,549 24 1,031,096 23 
    Commercial-based loans4,816,574 78 3,655,269 80 
Residential construction114,392 2 70,353 1 
Residential first mortgage1,016,935 16 713,983 15 
Residential junior mortgage177,332 3 131,424 3 
  Residential real estate1,308,659 21 915,760 19 
Retail & other55,266 1 50,807 1 
    Retail-based loans1,363,925 22 966,567 20 
      Loans6,180,499 100 %4,621,836 100 %
Less ACL-Loans61,829 49,672 
   Loans, net$6,118,670 $4,572,164 
ACL-Loans to loans1.00 %1.07 %

Commercial and industrial loans included $0.2 million and $25 million of PPP loans at December 31, 2022 and December 31, 2021, respectively. Accrued interest on loans totaled $15 million and $11 million at December 31, 2022 and December 31, 2021, respectively, and is included in accrued interest receivable and other assets on the consolidated balance sheets.

Allowance for Credit Losses-Loans:
The majority of the Company’s loans, commitments, and letters of credit have been granted to customers in the Company’s market area. Although the Company has a diversified loan portfolio, the credit risk in the loan portfolio is largely influenced by general economic conditions and trends of the counties and markets in which the debtors operate, and the resulting impact on the operations of borrowers or on the value of underlying collateral, if any.
A roll forward of the allowance for credit losses - loans was as follows.
 Years Ended December 31,
(in thousands)202220212020
Beginning balance$49,672 $32,173 $13,972 
Adoption of CECL— — 8,488 
Initial PCD ACL— — 797 
   Total impact for adoption of CECL— — 9,285 
ACL on PCD loans acquired1,937 5,159 — 
Provision for credit losses10,950 12,500 10,300 
Charge-offs(1,033)(513)(1,689)
Recoveries303 353 305 
    Net (charge-offs) recoveries(730)(160)(1,384)
Ending balance$61,829 $49,672 $32,173 
The following table presents the balance and activity in the ACL-Loans by portfolio segment.
Year Ended December 31, 2022
(in thousands)Commercial
& industrial		Owner-
occupied
CRE		AgriculturalCRE
investment		Construction & land
development		Residential
construction		Residential
first mortgage		Residential
junior
mortgage		Retail
& other		Total
ACL-Loans *
Beginning balance$12,613 $7,222 $9,547 $8,462 $1,812 $900 $6,844 $1,340 $932 $49,672 
ACL on PCD loans1,408 384 — 38 2 — 93 12 — 1,937 
Provision2,415 2,087 215 4,075 758 512 96 493 299 10,950 
Charge-offs(190)(555)— — — — (65)— (223)(1,033)
Recoveries104 — — 169 — — 8 1 21 303 
Net (charge-offs) recoveries(86)(555)— 169 — — (57)1 (202)(730)
Ending balance$16,350 $9,138 $9,762 $12,744 $2,572 $1,412 $6,976 $1,846 $1,029 $61,829 
As % of ACL-Loans26 %15 %16 %21 %4 %2 %11 %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, 2021
(in thousands)Commercial
& industrial		Owner-
occupied
CRE		AgriculturalCRE
investment		Construction & land
development		Residential
construction		Residential
first mortgage		Residential
junior
mortgage		Retail
& other		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 loans723 1,045 2,585 415 103 — 272 13 3 5,159 
Provision196 305 5,615 2,608 725 479 1,892 237 443 12,500 
Charge-offs(242)— (48)(4)— — (113)— (106)(513)
Recoveries292 — — 2 — — 20 4 35 353 
Net (charge-offs) recoveries50 — (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-Loans25 %14 %19 %17 %4 %2 %14 %3 %2 %100 %

Allowance for Credit Losses-Unfunded Commitments:
In addition to the ACL-Loans, the Company has established an ACL-Unfunded Commitments of $3.0 million at December 31, 2022 and $2.4 million at December 31, 2021, classified in accrued interest payable and other liabilities on the consolidated balance sheets.

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. The following table presents the components of the provision for credit losses.

Years Ended December 31,
(in thousands)202220212020
Provision for credit losses on:
Loans$10,950 $12,500 $10,300 
Unfunded commitments550 2,400 — 
Investment securities— — — 
  Total provision for credit losses$11,500 $14,900 $10,300 
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, 2022
Collateral Type
(in thousands)Real EstateOther Business AssetsTotalWithout an AllowanceWith an AllowanceAllowance Allocation
Commercial & industrial$— $3,475 $3,475 $1,927 $1,548 $595 
Owner-occupied CRE4,907 — 4,907 4,699 208 53 
Agricultural13,758 6,458 20,216 14,358 5,858 261 
CRE investment2,713 — 2,713 979 1,734 212 
Construction & land development670 — 670 670 — — 
Residential construction— — — — — — 
Residential first mortgage91 — 91 91 — — 
Residential junior mortgage— — — — — — 
Retail & other— — — — — — 
Total loans$22,139 $9,933 $32,072 $22,724 $9,348 $1,121 
December 31, 2021Collateral Type
(in thousands)Real EstateOther Business AssetsTotalWithout an AllowanceWith an AllowanceAllowance Allocation
Commercial & industrial$— $2,296 $2,296 $1,842 $454 $258 
Owner-occupied CRE3,537 — 3,537 1,315 2,222 552 
Agricultural19,637 8,518 28,155 25,310 2,845 841 
CRE investment3,000 — 3,000 1,684 1,316 407 
Construction & land development1,038 — 1,038 655 383 211 
Residential construction— — — — — — 
Residential first mortgage473 — 473 473 — — 
Residential junior mortgage— — — — — — 
Retail & other— — — — — — 
Total loans$27,685 $10,814 $38,499 $31,279 $7,220 $2,269 
Past Due and Nonaccrual Loans:
The following tables present past due loans by portfolio segment.
 December 31, 2022
(in thousands)30-89 Days Past
Due (accruing)		90 Days & Over
or nonaccrual		CurrentTotal
Commercial & industrial$210 $3,328 $1,301,281 $1,304,819 
Owner-occupied CRE833 5,647 948,119 954,599 
Agricultural20 20,416 1,068,171 1,088,607 
CRE investment— 3,832 1,146,117 1,149,949 
Construction & land development— 771 317,829 318,600 
Residential construction— — 114,392 114,392 
Residential first mortgage3,628 3,780 1,009,527 1,016,935 
Residential junior mortgage236 224 176,872 177,332 
Retail & other261 82 54,923 55,266 
Total loans$5,188 $38,080 $6,137,231 $6,180,499 
Percent of total loans0.1 %0.6 %99.3 %100.0 %
 
 December 31, 2021
(in thousands)30-89 Days Past
Due (accruing)		90 Days & Over
or nonaccrual		CurrentTotal
Commercial & industrial$94 $1,908 $1,040,254 $1,042,256 
Owner-occupied CRE— 4,220 782,969 787,189 
Agricultural108 28,367 766,253 794,728 
CRE investment114 4,119 813,828 818,061 
Construction & land development— 1,071 211,964 213,035 
Residential construction246 — 70,107 70,353 
Residential first mortgage2,592 4,132 707,259 713,983 
Residential junior mortgage23 243 131,158 131,424 
Retail & other115 94 50,598 50,807 
Total loans$3,292 $44,154 $4,574,390 $4,621,836 
Percent of total loans0.1 %0.9 %99.0 %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, 2022
% to Total
December 31, 2021
% to Total
Commercial & industrial$3,328 9 %$1,908 4 %
Owner-occupied CRE5,647 15 4,220 10 
Agricultural20,416 53 28,367 64 
CRE investment3,832 10 4,119 9 
Construction & land development771 2 1,071 3 
Residential construction— — — — 
Residential first mortgage3,780 10 4,132 9 
Residential junior mortgage224 1 243 1 
Retail & other82 — 94 — 
   Nonaccrual loans$38,080 100 %$44,154 100 %
Percent of total loans0.6 %0.9 %
Credit Quality Information:
The following tables present total loans by risk categories and year of origination. Loans acquired from Charter, Mackinac and County have been included in the December 31, 2022 and December 31, 2021 tables based upon the actual origination date.
December 31, 2022
Amortized Cost Basis by Origination Year
(in thousands)20222021202020192018PriorRevolvingRevolving to TermTOTAL
Commercial & industrial
Grades 1-4$317,394 $226,065 $101,374 $68,884 $50,189 $77,589 $360,978 $— $1,202,473 
Grade 59,938 5,902 10,811 1,530 3,986 4,562 20,617 — 57,346 
Grade 61,459 2,283 629 511 402 11,653 14,047 — 30,984 
Grade 7556 293 3,211 2,990 775 1,070 5,121 — 14,016 
Total$329,347 $234,543 $116,025 $73,915 $55,352 $94,874 $400,763 $— $1,304,819 
Owner-occupied CRE
Grades 1-4$151,391 $190,313 $105,156 $100,606 $91,479 $252,574 $6,734 $— $898,253 
Grade 55,241 3,192 4,287 2,163 4,791 14,632 348 — 34,654 
Grade 6— — 763 2,361 — 877 — — 4,001 
Grade 7227 706 6,344 616 — 9,798 — — 17,691 
Total$156,859 $194,211 $116,550 $105,746 $96,270 $277,881 $7,082 $— $954,599 
Agricultural
Grades 1-4$275,208 $145,272 $85,413 $25,463 $19,687 $130,849 $249,033 $— $930,925 
Grade 513,295 18,178 2,694 1,992 517 43,927 21,199 — 101,802 
Grade 6115 1,457 28 33 — 5,258 429 — 7,320 
Grade 77,165 2,632 720 1,977 4,611 19,948 11,507 — 48,560 
Total$295,783 $167,539 $88,855 $29,465 $24,815 $199,982 $282,168 $— $1,088,607 
CRE investment
Grades 1-4$205,930 $229,252 $192,527 $134,301 $79,649 $248,595 $11,383 $— $1,101,637 
Grade 5567 1,649 3,578 4,266 3,086 24,897 — — 38,043 
Grade 6— — — 1,170 2,396 2,483 206 — 6,255 
Grade 7— — 121 299 245 3,140 209 — 4,014 
Total$206,497 $230,901 $196,226 $140,036 $85,376 $279,115 $11,798 $— $1,149,949 
Construction & land development
Grades 1-4$104,804 $140,727 $12,188 $9,747 $23,811 $13,138 $13,235 $— $317,650 
Grade 537 — — 14 — 95 — — 146 
Grade 6— — — — — — — — — 
Grade 733 — — — — 771 — — 804 
Total$104,874 $140,727 $12,188 $9,761 $23,811 $14,004 $13,235 $— $318,600 
Residential construction
Grades 1-4$92,417 $16,774 $966 $123 $336 $229 $3,547 $— $114,392 
Grade 5— — — — — — — — — 
Grade 6— — — — — — — — — 
Grade 7— — — — — — — — — 
Total$92,417 $16,774 $966 $123 $336 $229 $3,547 $— $114,392 
Residential first mortgage
Grades 1-4$318,628 $272,011 $147,857 $68,975 $31,208 $162,153 $2,080 $3 $1,002,915 
Grade 51,494 758 997 1,803 2,272 465 — — 7,789 
Grade 6— — — 711 — — — — 711 
Grade 7154 329 188 349 197 4,303 — — 5,520 
Total$320,276 $273,098 $149,042 $71,838 $33,677 $166,921 $2,080 $3 $1,016,935 
Residential junior mortgage
Grades 1-4$10,119 $4,580 $5,207 $3,151 $1,573 $3,409 $142,784 $5,762 $176,585 
Grade 5— — — — — 143 165 — 308 
Grade 6— — — — — — — — — 
Grade 7— 206 — — — 24 209 — 439 
Total$10,119 $4,786 $5,207 $3,151 $1,573 $3,576 $143,158 $5,762 $177,332 
Retail & other
Grades 1-4$12,318 $8,957 $4,221 $3,188 $1,035 $24,950 $492 $— $55,161 
Grade 5— 23 — — — — — — 23 
Grade 6— — — — — — — — — 
Grade 7— 23 22 2 30 5 — — 82 
Total$12,318 $9,003 $4,243 $3,190 $1,065 $24,955 $492 $— $55,266 
Total loans$1,528,490 $1,271,582 $689,302 $437,225 $322,275 $1,061,537 $864,323 $5,765 $6,180,499 
December 31, 2021Amortized Cost Basis by Origination Year
(in thousands)20212020201920182017PriorRevolvingRevolving to TermTOTAL
Commercial & industrial
Grades 1-4$282,369 $146,131 $99,702 $69,478 $50,557 $71,247 $288,115 $— $1,007,599 
Grade 51,685 1,905 4,369 5,809 4,860 2,097 8,408 — 29,133 
Grade 6598 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 57,753 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 514,796 4,183 2,391 915 3,912 48,373 26,778 — 101,348 
Grade 638 38 36 — 86 1,049 85 — 1,332 
Grade 73,284 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 511,081 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 5640 — 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 5713 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 
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, 2022December 31, 2021
(in thousands)PerformingNonaccrualTotalPerformingNonaccrualTotal
Commercial & industrial$— $261 $261 $— $197 $197 
Owner-occupied CRE— 2,377 2,377 3,466 2,888 6,354 
Agricultural— 15,037 15,037 — 16,835 16,835 
CRE investment— 293 293 918 — 918 
Construction & land development— 75 75 — 308 308 
Residential first mortgage— 12 12 913 15 928 
Residential junior mortgage— — — 146 — 146 
Total$— $18,055 $18,055 $5,443 $20,243 $25,686 
The following table presents the number of loans modified in a TDR, pre-modification loan balance, and post-modification loan balance by loan composition.

 December 31, 2022December 31, 2021
($ in thousands)Number of LoansPre-Modification BalanceCurrent BalanceNumber of LoansPre-Modification BalanceCurrent Balance
Commercial & industrial3 $349 $261 2 $200 $197 
Owner-occupied CRE4 5,471 2,377 6 6,913 6,354 
Agricultural29 17,405 15,037 31 17,228 16,835 
CRE investment1 296 293 1 919 918 
Construction & land development1 533 75 1 533 308 
Residential first mortgage1 17 12 2 931 928 
Residential junior mortgage— — — 1 166 146 
Total39 $24,071 $18,055 44 $26,890 $25,686 

TDR concessions may include payment schedule modifications, interest rate concessions, maturity date extensions, bankruptcies, or some combination of these concessions. There were no loans which were classified as troubled debt restructurings during the previous twelve months that subsequently defaulted during 2022. As of December 31, 2022, there were no commitments to lend additional funds to debtors whose terms have been modified in troubled debt restructurings.
v3.22.4
PREMISES AND EQUIPMENT
 12 Months Ended
Dec. 31, 2022
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, 2022December 31, 2021
Land$14,841 $10,806 
Land improvements5,361 3,896 
Building and improvements89,630 79,754 
Leasehold improvements7,079 6,514 
Furniture and equipment35,717 30,741 
 152,628 131,711 
Less accumulated depreciation and amortization43,672 37,145 
Premises and equipment, net$108,956 $94,566 
Depreciation and amortization expense was $7.6 million in 2022, $5.0 million in 2021, and $4.4 million in 2020. 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 $2.2 million in 2022, $1.3 million in 2021, and $1.0 million in 2020.
Nicolet leases space under non-cancelable operating lease agreements for certain bank branch facilities with remaining lease terms of 1 to 8 years. Certain lease arrangements contain extension options which typically range from 5 to 10 years at the then fair market rental rates. The lease asset and liability considers renewal options when they are reasonably certain of being exercised.
A summary of net lease cost and selected other information related to operating leases was as follows.
Years Ended
($ in thousands)December 31, 2022December 31, 2021December 31, 2020
Net lease cost:
Operating lease cost$1,778 $1,018 $834 
Variable lease cost448 234 169 
  Net lease cost$2,226 $1,252 $1,003 
Selected other operating lease information:
Weighted average remaining lease term (years)5.46.35.1
Weighted average discount rate2.3 %1.5 %2.0 %
The following table summarizes the maturity of remaining lease liabilities.
Years Ending December 31,(in thousands)
2023$2,437 
20242,200 
20251,876 
20261,688 
20271,519 
Thereafter1,417 
    Total future minimum lease payments11,137 
Less: amount representing interest(252)
   Present value of net future minimum lease payments$10,885 
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 eight branch locations (five owned locations and three leased locations) given changing customer needs, partly from the pandemic. The 2020 closures resulted in accelerated depreciation of $0.5 million, a $1.0 million lease termination charge (recorded to other expense), and a $0.5 million write-down upon transfer of the owned locations to OREO (recorded to asset gains (losses), net).
v3.22.4
GOODWILL AND OTHER INTANGIBLES AND SERVICING RIGHTS
 12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLES AND SERVICING RIGHTS GOODWILL AND OTHER INTANGIBLES AND SERVICING RIGHTS
Goodwill and other intangibles are periodically reviewed for impairment. Factors management considered in this review included the overall financial performance of the Company, as well as changes in the Company’s common stock price relative to its book value per common share. Management also regularly monitors economic factors for potential impairment indications on the value of our franchise, stability of deposits, and wealth client base, underlying our goodwill and other intangibles. Management concluded no impairment was indicated for 2022 or 2021. A summary of goodwill and other intangibles was as follows. 
(in thousands)December 31, 2022December 31, 2021
Goodwill$367,387 $317,189 
Core deposit intangibles32,701 19,445 
Customer list intangibles2,350 2,858 
Other intangibles35,051 22,303 
Goodwill and other intangibles, net$402,438 $339,492 
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 2022, goodwill increased due to the acquisition of Charter, while during 2021 goodwill increased due to the acquisitions of Mackinac and County.
(in thousands)December 31, 2022December 31, 2021
Goodwill:  
Goodwill at beginning of year$317,189 $163,151 
Acquisitions49,970 154,038 
Purchase accounting adjustment228 — 
Goodwill at end of year$367,387 $317,189 
Other intangibles: Other intangible assets, consisting of core deposit intangibles and customer list intangibles, are amortized over their estimated finite lives. During 2022, core deposit intangibles increased due to the acquisition of Charter, while during 2021, core deposit intangibles increased due to the acquisitions of Mackinac and County.
(in thousands)December 31, 2022December 31, 2021
Core deposit intangibles:  
Gross carrying amount$60,724 $41,360 
Accumulated amortization(28,023)(21,915)
Net book value$32,701 $19,445 
Additions during the period$19,364 $13,595 
Amortization during the period$6,108 $2,987 
Customer list intangibles:  
Gross carrying amount$5,523 $5,523 
Accumulated amortization(3,173)(2,665)
Net book value$2,350 $2,858 
Amortization during the period$508 $507 
Mortgage servicing rights: A summary of the changes in the MSR asset was as follows.
(in thousands)December 31, 2022December 31, 2021
MSR asset:  
MSR asset at beginning of year$13,636 $10,230 
Capitalized MSR2,327 4,329 
MSR asset acquired— 1,322 
Amortization during the period(2,883)(2,245)
MSR asset at end of year$13,080 $13,636 
Valuation allowance at beginning of year$(1,200)$(1,000)
Additions— (500)
Reversals700 300 
Valuation allowance at end of year$(500)$(1,200)
MSR asset, net$12,580 $12,436 
Fair value of MSR asset at end of period$17,215 $15,599 
Residential mortgage loans serviced for others$1,637,109 $1,583,577 
Net book value of MSR asset to loans serviced for others0.77 %0.79 %
The Company periodically evaluates its mortgage servicing rights asset for impairment. At each reporting date, impairment is assessed based on estimated fair value using estimated prepayment speeds of the underlying mortgage loans serviced and stratification based on the risk characteristics of the underlying loans (predominantly loan type and note interest rate).
Loan servicing rights: The Company acquired an LSR asset in connection with its acquisition of County on December 3, 2021. 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. A summary of the changes in the LSR asset was as follows.
(in thousands)December 31, 2022December 31, 2021
LSR asset:  
LSR asset at beginning of year$20,055 $— 
LSR asset acquired— 20,055 
Amortization during the period(9,016)— 
LSR asset at end of year$11,039 $20,055 
Agricultural loans serviced for others$538,392 $793,655 
The following table shows the estimated future amortization expense for amortizing intangible assets and servicing assets. The projections are based on existing asset balances, the current interest rate environment and prepayment speeds as of December 31, 2022. The actual amortization expense the Company recognizes in any given period may be significantly different depending upon acquisition or sale activities, changes in interest rates, prepayment speeds, market conditions, regulatory requirements and events or circumstances that indicate the carrying amount of an asset may not be recoverable.
(in thousands)Core deposit
intangibles		Customer list
intangibles		MSR assetLSR asset
Years Ending December 31,   
2023$7,589 $483 $2,402 $2,208 
20246,298 449 2,657 1,962 
20255,161 449 1,913 1,717 
20263,983 249 1,414 1,472 
20273,218 166 1,413 1,227 
Thereafter6,452 554 3,281 2,453 
Total$32,701 $2,350 $13,080 $11,039 
v3.22.4
OTHER REAL ESTATE OWNED
 12 Months Ended
Dec. 31, 2022
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)20222021
Balance at beginning of period$11,955 $3,608 
Transfer in loans at net realizable value183 334 
Transfer in former bank branch properties at net realizable value25 7,843 
Sales proceeds(13,150)(2,743)
Net gain from sales3,206 597 
Write-downs(244)(28)
Acquired balance, net— 2,344 
Balance at end of period$1,975 $11,955 
v3.22.4
DEPOSITS
 12 Months Ended
Dec. 31, 2022
Deposits [Abstract]  
DEPOSITS DEPOSITS
The deposit composition was as follows.
 December 31, 2022December 31, 2021
(in thousands)Amount% of TotalAmount% of Total
Noninterest-bearing demand$2,361,816 33 %$1,975,705 31 %
Interest-bearing demand1,279,850 18 %1,272,858 20 %
Money market1,707,619 24 %1,561,966 24 %
Savings931,417 13 %803,197 12 %
Time898,219 12 %852,190 13 %
   Total deposits$7,178,921 100 %$6,465,916 100 %
At December 31, 2022, the scheduled maturities of time deposits were as follows.
Years Ending December 31,(in thousands)
2023$464,568 
2024288,059 
2025112,284 
202620,321 
202712,217 
Thereafter770 
Total time deposits$898,219 
Time deposits in excess of FDIC insurance limits were $77 million and $113 million at December 31, 2022 and 2021, respectively. Brokered deposits were $592 million and $444 million at December 31, 2022 and 2021, respectively.
v3.22.4
SHORT AND LONG-TERM BORROWINGS
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
SHORT AND LONG-TERM BORROWINGS SHORT AND LONG-TERM BORROWINGS
Short-Term Borrowings:
Short-term borrowings include any borrowing with an original contractual maturity of one year or less. At December 31, 2022, short-term borrowings included $317 million of short-term FHLB advances, comprised of $117 million due in January 2023 at a weighted average rate of 4.29% and $200 million due in September 2023 at a weighted average rate of 4.30%. The Company did not have any short-term borrowings outstanding at December 31, 2021.

Long-Term Borrowings:
Long-term borrowings include any borrowing with an original contractual maturity greater than one year. The components of long-term borrowings were as follows.
(in thousands)December 31, 2022December 31, 2021
FHLB advances$33,000 $25,000 
Junior subordinated debentures39,720 38,885 
Subordinated notes152,622 153,030 
Total long-term borrowings
$225,342 $216,915 
FHLB Advances: The FHLB advances bear fixed rates, require interest-only monthly payments, and have maturity dates through March 2030. The weighted average rate of the FHLB advances was 1.09% and 0.59% at December 31, 2022 and 2021, respectively. The FHLB advances are collateralized by a blanket lien on qualifying residential first and junior mortgage loans which had a pledged balance of $665 million and $522 million at December 31, 2022 and 2021, respectively. In addition, $500 million of U.S. Treasury Notes were pledged to the FHLB at December 31, 2022, compared to none at December 31, 2021.
The following table shows the maturity schedule of the FHLB advances as of December 31, 2022.
Maturing in:(in thousands)
2023$— 
2024— 
20255,000 
2026— 
2027— 
Thereafter28,000 
 $33,000 
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, 2022 and 2021, $38 million and $37 million, respectively, of trust preferred securities qualify as Tier 1 capital.
Subordinated Notes (the “Notes”): In July 2021, the Company completed the private placement of $100 million in fixed-to-floating rate subordinated notes due in 2031, with a fixed annual rate of 3.125% for the first five years, and will reset quarterly thereafter to the then current three-month Secured Overnight Financing Rate (“SOFR”) plus 237.5 basis points. The Notes, due in 2031, are redeemable beginning July 15, 2026 and quarterly thereafter on any interest payment date.
In December 2021, Nicolet assumed two subordinated note issuances at a premium as the result of the County acquisition. One issuance was $30 million in fixed-to-floating rate subordinated notes due in 2028, with a fixed annual interest rate of 5.875% for the first five years, and will reset quarterly thereafter to the then current three-month LIBOR plus 2.88%. The second issuance was $22 million in fixed-to-floating rate subordinated notes due in 2030, with a fixed annual interest rate of 7.00% for the first five years, and will reset quarterly thereafter to the then current SOFR plus 687.5 basis points. The Notes due in 2028 are redeemable beginning June 1, 2023, and quarterly thereafter on any interest payment date, while the Notes due in 2030 are redeemable beginning June 30, 2025, and quarterly thereafter on any interest payment date. All Notes qualify as Tier 2 capital for regulatory purposes.
The following table shows the breakdown of junior subordinated debentures and subordinated notes.
As of 12/31/2022
As of 12/31/2021
(in thousands)Maturity
Date		Interest
 Rate		Par

Unamortized Premium /(Discount) / Debt Issue Costs (1)

Carrying
Value		Interest
 Rate
Carrying
Value
Junior Subordinated Debentures:
Mid-Wisconsin Statutory Trust I (2)
12/15/20356.20 %$10,310 $(2,576)$7,734 1.63 %$7,537 
Baylake Capital Trust II (3)
9/30/20366.08 %16,598 (3,174)13,424 1.57 %13,187 
First Menasha Statutory Trust (4)
3/17/20347.53 %5,155 (487)4,668 3.01 %4,624 
County Bancorp Statutory Trust II (5)
9/15/20356.30 %6,186 (909)5,277 1.73 %5,061 
County Bancorp Statutory Trust III (6)
6/15/20366.46 %6,186 (967)5,219 1.89 %5,121 
Fox River Valley Capital Trust (7)
5/30/20336.40 %3,610 (212)3,398 6.40 %3,355 
Total$48,045 $(8,325)$39,720 $38,885 
Subordinated Notes:
Subordinated Notes due 20317/15/20313.13 %$100,000 $(733)$99,267 3.13 %$99,057 
County Subordinated Notes due 20286/1/20285.88 %30,000 119 30,119 5.88 %30,402 
County Subordinated Notes due 20306/30/20307.00 %22,400 836 23,236 7.00 %23,571 
Total$152,400 $222 $152,622 $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.
v3.22.4
EMPLOYEE AND DIRECTOR BENEFIT PLANS
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
EMPLOYEE AND DIRECTOR BENEFIT PLANS EMPLOYEE AND DIRECTOR BENEFIT PLANS
Nonqualified deferred compensation 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 and employer contributions, including earnings thereon, at December 31, 2022 and 2021 totaled approximately $12.1 million and $12.7 million, respectively, and is included in other liabilities on the consolidated balance sheets. The Company recorded discretionary contributions of $2.4 million to selected participants during 2022, with approximately half vesting over a two year period (of which, one-third vested immediately and one-third vests on each of the first and second anniversaries of the initial grant) and the remainder vested immediately. In comparison, the Company recorded discretionary contributions of $5.7 million to selected participants during 2021, which vested immediately. The expense related to these discretionary contributions is recognized over the vesting period of the related 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 2022 and 2021, the director plan purchased 1,898 and 1,018 shares of Company common stock valued at approximately $154,000 and $73,000, respectively. Common stock valued at approximately $366,000 (and representing 4,737 shares) was distributed to past directors during 2021 and no common stock was distributed during 2022. The common stock outstanding and the related director deferred compensation liability are offsetting components of the Company’s equity in the amount of $1.2 million at December 31, 2022 and $1.1 million at December 31, 2021 representing 29,660 shares and 27,762 shares, respectively.
Nicolet 401(k) plan:
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 2022, 2021 and 2020, the Company’s 401(k) expense was approximately $4.0 million (including a $1.0 million profit sharing contribution), $2.5 million (including a $0.5 million profit sharing contribution), and $2.2 million (including a $0.5 million profit sharing contribution), respectively.
Employee stock purchase plan:
The Company sponsors an employee stock purchase plan under which eligible employees may purchase Nicolet common stock at a 10% discount, utilizing payroll deductions that range from a minimum of $20 to a maximum of $400 per payroll, during offering periods (currently quarterly).
v3.22.4
STOCK-BASED COMPENSATION
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
The Company may grant stock options and restricted stock under its stock-based compensation plans to certain officers, employees and directors. These plans are administered by a committee of the Board of Directors. The Company’s stock-based compensation plans at December 31, 2022 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, 2022, approximately 0.7 million shares were available for grant under this 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. The weighted average assumptions used in the model for valuing stock option grants were as follows.
 202220212020
Dividend yield— %— %— %
Expected volatility30 %30 %25 %
Risk-free interest rate3.03 %1.19 %1.35 %
Expected average life7 years7 years7 years
Weighted average per share fair value of options$30.99 $26.33 $20.55 
A summary of the Company’s stock option activity is summarized below.
Stock OptionsOption Shares
Outstanding		Weighted Average
Exercise Price		Weighted Average Remaining Life (Years)Aggregate Intrinsic Value (in thousands)
Outstanding – December 31, 2019
1,443,733 $48.75 
Granted54,500 69.44 
Exercise of stock options *(60,773)26.51 
Forfeited— — 
Outstanding – December 31, 2020
1,437,460 $50.47 6.6$23,840 
Granted450,000 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 
Granted132,929 81.04   
Exercise of stock options *(82,611)41.84   
Forfeited(30,500)75.08   
Outstanding – December 31, 2022
1,853,064 $59.79 5.9$37,526 
Exercisable – December 31, 2022
1,267,935 $51.83 4.8$35,461 
*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 7,957 shares, 10,354 shares, and 18,952 shares were surrendered during 2022, 2021, and 2020, 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 2022, 2021, and 2020 was approximately $3.9 million, $2.2 million, and $2.5 million, respectively.
The following options were outstanding at December 31, 2022.
 Number of SharesWeighted Average
Exercise Price		Weighted Average
Remaining Life (Years)
 OutstandingExercisableOutstandingExercisableOutstandingExercisable
$23.80 – $40.00
154,585 154,585 $32.21 $32.21 2.92.9
$40.01 – $50.00
751,450 751,450 48.85 48.85 4.44.4
$50.01 – $65.00
163,500 151,400 56.44 56.41 5.15.0
$65.01 – $75.00
277,100 135,800 71.02 70.67 7.37.0
$75.01 – $94.90
506,429 74,700 79.37 78.77 8.78.4
 1,853,064 1,267,935 $59.79 $51.83 5.94.8
A summary of the Company’s restricted stock activity is summarized below.
Restricted StockRestricted Shares
Outstanding		Weighted Average Grant
Date Fair  Value
Outstanding – December 31, 2019
22,521 $44.94 
Granted19,672 60.29 
Vested *(23,268)50.90 
Forfeited— — 
Outstanding – December 31, 2020
18,925 $53.57 
Granted33,153 75.83 
Vested *(25,831)64.53 
Forfeited(446)41.44 
Outstanding – December 31, 2021
25,801 $71.42 
Granted72,948 76.81 
Vested *(24,659)72.64 
Forfeited(600)56.01 
Outstanding – December 31, 2022
73,490 $76.49 
*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 2,249 shares, 3,215 shares, and 4,733 shares were surrendered during 2022, 2021, and 2020, respectively.
The Company recognized $6.3 million, $6.6 million and $5.3 million of stock-based compensation expense (included in personnel on the consolidated statements of income) during the years ended December 31, 2022, 2021, and 2020, respectively, associated with its common stock awards granted to officers and employees. In addition, during 2022, 2021, and 2020, the Company recognized approximately $0.7 million, $0.8 million, and $0.4 million, respectively, of director expense (included in other expense on the consolidated statements of income) for restricted stock grants with immediate vesting to non-employee directors totaling 8,852 shares in 2022, 9,875 shares in 2021, and 7,950 shares in 2020. As of December 31, 2022, there was approximately $18.6 million of unrecognized compensation cost related to equity award grants. The cost is expected to be recognized over the remaining vesting period of approximately four years. The Company recognized a tax benefit of approximately $1.1 million, $0.6 million, and $0.8 million for the years ended December 31, 2022, 2021, and 2020 respectively, for the tax impact of stock option exercises and vesting of restricted stock.
v3.22.4
STOCKHOLDERS' EQUITY
 12 Months Ended
Dec. 31, 2022
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 2022, $61 million was utilized to repurchase and cancel approximately 672,000 common shares at a weighted average price of $91.54, while during 2021, $61 million was utilized to repurchase and cancel approximately 793,000 common shares at a weighted average price of $77.50. As of December 31, 2022, there remained $48 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.
On August 26, 2022, in connection with its acquisition of Charter, the Company issued 1,262,360 shares of its common stock for stock consideration valued at $98 million plus cash consideration of $39 million.
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.
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.
v3.22.4
INCOME TAXES
 12 Months Ended
Dec. 31, 2022
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)202220212020
Current$44,384 $14,138 $29,764 
Deferred(12,907)6,332 (9,288)
Income tax expense$31,477 $20,470 $20,476 
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)202220212020
Tax on pretax income, less noncontrolling interest, at statutory rates$26,405 $17,023 $16,926 
State income taxes, net of federal effect7,847 5,064 5,030 
Tax-exempt interest income(1,037)(517)(513)
Increase in cash surrender value life insurance(1,040)(570)(738)
Stock-based employee compensation(1,101)(618)(839)
Executive compensation82 163 272 
Other, net321 (75)338 
Income tax expense$31,477 $20,470 $20,476 
The net deferred tax asset includes the following amounts of deferred tax assets and liabilities.
(in thousands)December 31, 2022December 31, 2021
Deferred tax assets:  
ACL-Loans$22,379 $14,650 
Net operating loss carryforwards2,721 3,800 
Compensation10,274 9,194 
Other1,759 2,605 
Other real estate672 1,364 
Basis difference on acquired securities3,172 — 
Unrealized loss on securities AFS21,011 — 
Total deferred tax assets61,988 31,613 
Deferred tax liabilities:  
Premises and equipment(3,000)(3,860)
Prepaid expenses(801)(1,110)
Basis difference on acquired securities— (1,678)
Core deposit and other intangibles(8,817)(5,278)
Purchase accounting adjustments to liabilities(1,595)(1,725)
MSR and LSR assets(6,570)(8,726)
Other(513)(2,462)
Unrealized gain on securities AFS— (1,392)
Total deferred tax liabilities(21,296)(26,231)
Net deferred tax assets$40,692 $5,382 
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, 2022 and 2021, no valuation allowance was determined to be necessary.
At December 31, 2022, the Company had a federal and state net operating loss carryforward of $8.9 million and $13.8 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.
v3.22.4
COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Dec. 31, 2022
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, 2022December 31, 2021
Commitments to extend credit$1,850,601 $1,433,881 
Financial standby letters of credit26,530 13,562 
Performance standby letters of credit9,375 7,336 
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% of the total year-end commitments for both 2022 and 2021, 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 $9 million and $9 million, respectively, at December 31, 2022. 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 $50 million and $1 million, respectively, at December 31, 2021. The net fair value of these mortgage derivatives combined was a net gain of $0.1 million at both December 31, 2022 and December 31, 2021.
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 both December 31, 2022 and December 31, 2021.
Nicolet is party to various pending and threatened claims and legal proceedings arising in the normal course of business activities, some of which may involve claims for substantial amounts. Although Nicolet has developed policies and procedures to minimize legal noncompliance and the impact of claims and other proceedings and endeavored to procure reasonable amounts of insurance coverage, litigation and regulatory actions present an ongoing risk. With respect to all such claims, Nicolet continuously assesses its potential liability based on the allegations and evidence available. If the facts indicate that it is probable that Nicolet will incur a loss and the amount of such loss can be reasonably estimated, Nicolet will establish an accrual for the probable loss. For matters where a loss is not probable, or the amount of the loss cannot be reasonably estimated, Nicolet does not establish an accrual.
Nicolet believes it has meritorious defenses to any pending claims and intends to defend itself vigorously. That aside, Nicolet also acknowledges that final resolution of legal claims can be unpredictable. Various factors can exacerbate this unpredictability, for example, when the damages being sought are unsubstantiated or indeterminate, when discovery is not complete, when the proceeding is not yet in its final stages, when the claims present a novel or unsettled issue of law, when there are significant facts in dispute, when there are a large number of parties (including where it is uncertain how liability, if any, will be shared among multiple defendants), or when there is a wide range of potential results. Although uncertain, based on the most recent information available, advice of counsel and available insurance coverage, if applicable, management believes that any liability resulting from such proceedings would not have a material adverse effect on the consolidated financial statements as of December 31, 2022. It is possible, however, that future developments could result in an unfavorable outcome for or resolution of any one or more of the legal proceedings in which Nicolet is a defendant, which may be material to Nicolet’s business or consolidated results of operations or financial condition for a particular fiscal period or periods.
v3.22.4
RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 31, 2022
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS RELATED PARTY TRANSACTIONS
The Company conducts transactions, in the normal course of business, with its directors and executive 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.

The Company has granted loans to its directors, executive officers, and their related interests. These loans were made on substantially the same terms, including rates and collateral, as those prevailing at the time made for comparable transactions with other unrelated persons. A summary of the loans to related parties was as follows.
(in thousands)December 31, 2022
Balance at beginning of year$112,917 
New loans20,713 
Repayments(21,131)
Changes due to status of executive officers and directors(1,792)
Balance at end of year$110,707 

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 former executive, Ann K. Lawson, including 2,193 shares for $0.2 million (or an average cost per share of $76.14). This private transaction was made in conjunction with a large stock option exercise by the executive.
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 was 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 in annual rent expense to the JV during 2020.
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 $153,000, $124,000, and $122,000, on this facility during 2022, 2021, and 2020, respectively. This same Board member participated in a competitive bid process for and was awarded the contract as general contractor for the construction of a new branch location in 2022, and the reconstruction of a different existing branch location in 2019. The 2022 new branch construction is estimated to total $2.3 million, of which, approximately $1.1 million was paid during 2022 as progress was made on the construction. Payments for the 2019 branch reconstruction were $1.3 million, including payments of $0.9 million in 2020 and $0.4 million in 2019 as progress was made on this branch reconstruction. In addition, payments of $154,000 were made during 2022 for two small branch construction projects at two other branch locations. At least 75% of all branch construction payments were passed through to various subcontractors.
In August 2022, the Company assumed a lease for a Charter administrative location in a facility owned by an entity for which another Board member has the controlling ownership interest. Rent expense of $49,000 was paid during 2022 (from the acquisition of Charter) on this location.
v3.22.4
ASSET GAINS (LOSSES), NET
 12 Months Ended
Dec. 31, 2022
Assets Gains (Losses), Net [Abstract]  
ASSET GAINS (LOSSES), NET ASSET GAINS (LOSSES), NET
Components of the net gains (losses) on assets are as follows.
Years Ended December 31,
(in thousands)202220212020
Gains (losses) on sales of securities AFS, net$(244)$(283)$395 
Gains (losses) on equity securities, net(127)3,445 (987)
Gains (losses) on sales of OREO, net3,206 597 157 
Write-downs of OREO(244)(28)(1,040)
Write-down of other investment— — (100)
Gains (losses) on sales of other investments, net531 550 — 
Gains (losses) on sales or dispositions of other assets, net8 (100)(230)
Asset gains (losses), net$3,130 $4,181 $(1,805)
v3.22.4
REGULATORY CAPITAL REQUIREMENTS
 12 Months Ended
Dec. 31, 2022
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 common equity Tier 1 (“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. Failure to meet this capital conservation buffer would result in limit on dividends, other distributions, and discretionary bonuses.
Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain minimum amounts and ratios (set forth in the table below) of Total, Tier 1 and 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, 2022 and 2021.
As of December 31, 2022 and 2021, 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 Bank is also subject to legal limitations on dividends that can be paid to the parent company without prior approval of the applicable regulatory agencies. 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, 2022, the Bank could pay dividends of approximately $28 million to the Company without seeking regulatory approval.
The Company’s and the Bank’s actual regulatory capital amounts and ratios are presented in the following table.
ActualFor Capital Adequacy
Purposes
To Be Well Capitalized
Under Prompt Corrective
Action Provisions (2)
(in thousands)Amount
Ratio (1)
Amount
Ratio (1)
Amount
Ratio (1)
December 31, 2022      
Company      
Total risk-based capital$889,763 12.3 %$577,138 8.0 %  
Tier 1 risk-based capital684,280 9.5 432,853 6.0   
Common equity Tier 1 capital646,341 9.0 324,640 4.5   
Leverage684,280 8.2 335,621 4.0   
Bank      
Total risk-based capital$816,951 11.3 %$576,241 8.0 %$720,301 10.0 %
Tier 1 risk-based capital764,090 10.6 432,181 6.0 576,241 8.0 
Common equity Tier 1 capital764,090 10.6 324,135 4.5 468,196 6.5 
Leverage764,090 9.1 334,916 4.0 418,645 5.0 
December 31, 2021      
Company      
Total risk-based capital$793,410 13.8 %$459,648 8.0 %  
Tier 1 risk-based capital604,199 10.5 344,736 6.0   
Common equity Tier 1 capital567,095 9.9 258,552 4.5   
Leverage604,199 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 capital664,688 11.6 344,607 6.0 459,476 8.0 
Common equity Tier 1 capital664,688 11.6 258,455 4.5 373,324 6.5 
Leverage664,688 10.3 256,990 4.0 321,237 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.
v3.22.4
FAIR VALUE MEASUREMENTS
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Fair value represents the estimated price at which an orderly transaction to sell an asset or transfer a liability would take place between market participants at the measurement date under current market conditions (i.e., an exit price concept), and is a market-based measurement versus an entity-specific measurement. The Company records and/or discloses certain financial instruments on a fair value basis. These financial assets and financial liabilities are measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the observability of the assumptions used to determine fair value. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from independent sources. Unobservable inputs are inputs that reflect assumptions of the reporting entity about how market participants would price the asset or liability based on the best information available under the circumstances. The three fair value levels are:
•Level 1 – quoted market prices in active markets for identical assets or liabilities that a company has the ability to access at the measurement date
•Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly
•Level 3 – significant unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity
In instances where the fair value measurement is based on inputs from different levels, the level within which the entire fair value measurement will be categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. This assessment of the significance of an input requires management judgment.
Recurring basis fair value measurements:
The following table presents the balances of assets and liabilities measured at fair value on a recurring basis.
(in thousands) Fair Value Measurements Using
Measured at Fair Value on a Recurring Basis:TotalLevel 1Level 2Level 3
December 31, 2022    
U.S. Treasury securities$183,830 $— $183,830 $— 
U.S. government agency securities2,100 — 2,100 — 
State, county and municipals398,188 — 396,315 1,873 
Mortgage-backed securities200,932 — 199,951 981 
Corporate debt securities132,568 — 127,269 5,299 
Securities AFS$917,618 $— $909,465 $8,153 
Other investments (equity securities)$4,376 $4,376 $— $— 
Derivative assets— — — — 
Derivative liabilities— — — — 
December 31, 2021    
U.S. Treasury securities$190,272 $— $190,272 $— 
U.S. government agency securities1,005 — 1,005 — 
State, county and municipals312,737 — 310,316 2,421 
Mortgage-backed securities271,262 — 270,260 1,002 
Corporate debt securities146,385 — 141,743 4,642 
Securities AFS$921,661 $— $913,596 $8,065 
Other investments (equity securities)$5,660 $5,660 $— $— 
Derivative assets1,064 — 1,064 — 
Derivative liabilities1,064 — 1,064 — 
The following is a description of the valuation methodologies used by the Company for the assets and liabilities measured at fair value on a recurring basis, noted in the table above.
Securities AFS: 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. Treasury securities, 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, 2022 and 2021, it was determined that carrying value was the best approximation of fair value for these Level 3 securities, based primarily on the internal analysis performed on these securities.
Derivatives: 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, 2022December 31, 2021
Balance at beginning of year$8,065 $3,130 
Acquired balances750 4,935 
Paydowns/Sales/Settlements(451)— 
Unrealized gains / (losses)(211)— 
Balance at end of year$8,153 $8,065 
Nonrecurring basis fair value measurements:
The following table presents the Company’s assets measured at fair value on a nonrecurring basis, aggregated by 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:TotalLevel 1Level 2Level 3
December 31, 2022    
Collateral dependent loans$30,951 $— $— $30,951 
OREO1,975 — — 1,975 
MSR asset12,580 — — 12,580 
December 31, 2021    
Collateral dependent loans$36,230 $— $— $36,230 
OREO11,955 — — 11,955 
MSR asset12,436 — — 12,436 
The following is a description of the valuation methodologies used by the Company for the assets and liabilities measured at fair value on a nonrecurring basis, noted in the table above.
Collateral dependent loans: 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.
OREO: For OREO, the fair value is based upon the estimated fair value of the underlying collateral adjusted for the expected costs to sell.
MSR asset: To estimate the fair value of the MSR asset, the underlying serviced loan pools are stratified by interest rate tranche and term of the loan, and a valuation model is used to calculate the present value of the expected future cash flows for each stratum. The servicing valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as costs to service, a discount rate, ancillary income, default rates and losses, and prepayment speeds. Although some of these
assumptions are based on observable market data, other assumptions are based on unobservable estimates of what market participants would use to measure fair value.
Financial instruments:
The carrying amounts and estimated fair values of the Company’s financial instruments are shown below.
December 31, 2022
(in thousands)Carrying
Amount		Estimated 
Fair Value		Level 1Level 2Level 3
Financial assets:     
Cash and cash equivalents$154,723 $154,723 $154,723 $— $— 
Certificates of deposit in other banks12,518 12,407 — 12,407 — 
Securities AFS917,618 917,618 — 909,465 8,153 
Securities HTM679,128 623,352 — 623,352 — 
Other investments65,286 65,286 4,376 52,093 8,817 
Loans held for sale1,482 1,529 — 1,529 — 
Loans, net6,118,670 5,863,570 — — 5,863,570 
MSR asset12,580 17,215 — — 17,215 
Accrued interest receivable21,275 21,275 21,275 — — 
Financial liabilities:
Deposits$7,178,921 $7,172,779 $— $— $7,172,779 
Short-term borrowings317,000 317,000 317,000 — — 
Long-term borrowings225,342 220,513 — 33,001 187,512 
Accrued interest payable4,265 4,265 4,265 — — 
December 31, 2021
(in thousands)Carrying
Amount		Estimated 
Fair Value		Level 1Level 2Level 3
Financial assets:     
Cash and cash equivalents$595,292 $595,292 $595,292 $— $— 
Certificates of deposit in other banks21,920 22,236 — 22,236 — 
Securities AFS921,661 921,661 — 913,596 8,065 
Securities HTM651,803 648,394 — 648,394 — 
Other investments44,008 44,008 5,660 32,110 6,238 
Loans held for sale6,447 6,616 — 6,616 — 
Loans, net4,572,164 4,606,851 — — 4,606,851 
MSR asset12,436 15,599 — — 15,599 
Accrued interest receivable15,277 15,277 15,277 — — 
Financial liabilities:
Deposits$6,465,916 $6,463,064 $— $— $6,463,064 
Long-term borrowings216,915 216,092 — 25,097 190,995 
Accrued interest payable3,078 3,078 3,078 — — 
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 deposit 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.
Securities HTM: The valuation methodologies for Securities HTM are consistent with the valuation methodologies used for Securities AFS, as discussed under “Recurring basis fair value measurements” above.
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 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: The estimated fair value of lending-related commitments (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.
v3.22.4
PARENT COMPANY ONLY FINANCIAL INFORMATION
 12 Months Ended
Dec. 31, 2022
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 SheetsDecember 31,
(in thousands)20222021
Assets  
Cash and due from subsidiary$63,927 $84,656 
Investments10,313 9,684 
Investments in subsidiaries1,094,063 998,032 
Other assets392 1,503 
Total assets$1,168,695 $1,093,875 
Liabilities and Stockholders’ Equity  
Junior subordinated debentures$39,720 $38,885 
Subordinated notes152,622 153,030 
Other liabilities3,824 10,069 
Stockholders’ equity972,529 891,891 
Total liabilities and stockholders’ equity$1,168,695 $1,093,875 
Statements of IncomeYears Ended December 31,
(in thousands)202220212020
Interest income$81 $18 $39 
Interest expense8,687 2,959 2,313 
Net interest expense(8,606)(2,941)(2,274)
Dividend income from subsidiaries77,775 65,000 60,215 
Operating expense(457)(2,562)(886)
Gain (loss) on investments, net395 3,995 (1,087)
Income tax benefit2,373 437 1,102 
Earnings before equity in undistributed income (loss) of subsidiaries71,480 63,929 57,070 
Equity in undistributed income (loss) of subsidiaries22,780 (3,277)3,052 
Net income attributable to Nicolet Bankshares, Inc.$94,260 $60,652 $60,122 
Statements of Cash FlowsYears Ended December 31,
(in thousands)202220212020
Cash Flows From Operating Activities:   
Net income attributable to Nicolet Bankshares, Inc.$94,260 $60,652 $60,122 
Adjustments to reconcile net income to net cash provided by operating activities:
Accretion of discounts on borrowings427 584 486 
(Gain) loss on investments, net(395)(3,995)1,087 
Change in other assets and liabilities, net(1,775)1,013 1,786 
Equity in undistributed (income) loss of subsidiaries, net of dividends(22,780)3,277 (3,052)
Net cash provided by operating activities69,737 61,531 60,429 
Cash Flows from Investing Activities:   
Proceeds from sale of investments1,835 4,105 185 
Purchases of investments(2,116)(5,049)(1,179)
Net cash paid in business combinations(31,970)(63,892)(21,644)
Net cash used in investing activities(32,251)(64,836)(22,638)
Cash Flows From Financing Activities:   
Purchase and retirement of common stock(61,497)(62,583)(42,088)
Proceeds from issuance of common stock, net3,282 2,382 2,055 
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(58,215)37,963 (58,219)
Net increase (decrease) in cash and due from subsidiary(20,729)34,658 (20,428)
Beginning cash and due from subsidiary84,656 49,998 70,426 
Ending cash and due from subsidiary$63,927 $84,656 $49,998 
v3.22.4
EARNINGS PER COMMON SHARE
 12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
EARNINGS PER COMMON SHARE 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)202220212020
Net income attributable to Nicolet Bankshares, Inc.$94,260 $60,652 $60,122 
Weighted average common shares outstanding13,909 10,736 10,337 
Effect of dilutive common stock awards466 409 204 
Diluted weighted average common shares outstanding14,375 11,145 10,541 
Basic earnings per common share$6.78 $5.65 $5.82 
Diluted earnings per common share$6.56 $5.44 $5.70 
Options to purchase approximately 0.1 million shares for the years ended December 31, 2022, 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.
v3.22.4
OTHER ASSETS AND OTHER LIABILITIES HELD FOR SALE
 12 Months Ended
Dec. 31, 2022
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.
v3.22.4
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Policies)
 12 Months Ended
Dec. 31, 2022
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. 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.

Because the Company is not the primary beneficiary, the consolidated financial statements exclude the following wholly-owned variable interest entities: Mid-Wisconsin Statutory Trust, Baylake Capital Trust II, First Menasha Bancshares Statutory Trust I, First Menasha Bancshares Statutory Trust II, County Bancorp Statutory Trust II, County Bancorp Statutory Trust III, and Fox River Valley Trust I.
Operating Segment Operating Segment: The Bank represents the primary operating segment (as discussed above). 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: In preparing the accompanying consolidated financial statements in conformity with U.S. GAAP, the Company’s management is required to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the disclosures provided. Actual results may differ from these estimates. Material estimates that are particularly susceptible to significant change in the near-term include the fair value of securities available for sale, the determination of the allowance for credit losses, business combinations accounting and the fair value of assets acquired and liabilities assumed, goodwill, and income taxes.
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 (“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.
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, 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, and the Bank has not experienced any losses in such accounts.
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. 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 of an ACL. 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.
Other and Partnership Investments Other Investments: Other investments include equity securities with readily determinable fair values, “restricted” equity securities, and 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.Partnership Investments: The Company has invested in certain tax-advantaged projects promoting renewable energy. These investments are designed to generate returns primarily through the realization of federal and state income tax credits and other tax benefits. Such investments are accounted for using the equity method where the Company owns less than fifty percent and has the ability to exercise significant influence over the partnership, while investments where the Company does not have the ability to exercise significant influence are accounted for at fair value less impairment (if any) or cost less impairment if the fair value is not readily determinable. The Company uses the hypothetical liquidation book value (“HLBV”) method for equity investments when the liquidation rights and priorities as defined by an equity investment agreement differ from what is reflected by the underlying percentage ownership interests. The HLBV method is commonly applied to equity investments in the renewable energy industry, where the economic benefits corresponding to an equity investment that may vary at different points in time and / or are not directly linked to an investor’s ownership percentage. A calculation is prepared at each balance sheet date to determine the amount that the Company would receive if any equity investment entity were to liquidate all of its assets (as valued in accordance with U.S. GAAP) and distribute that cash to the investors based on the contractually defined liquidation priorities.
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 lien 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, 2022 and 2021, 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.

A description of each segment of the loan portfolio, including the corresponding credit risk, is included below.

Commercial and industrial loans consist primarily of commercial loans to small and mid-sized businesses within a diverse range of industries (manufacturing, wholesaling, paper, packaging, food production and processing, retail, service, and businesses supporting the general building industry). These loans are made for a wide variety of general corporate purposes, including working capital, equipment, and business expansion loans, with varying terms based upon the underlying purpose of the loan. Commercial and industrial loans are based primarily on the historical and projected cash flow of the underlying borrower, and secondarily on any underlying assets pledged by the borrower. The credit risk related to commercial and industrial loans is largely influenced by general economic conditions and the resulting impact on a borrower’s operations, or on the value of underlying collateral, if any. Credit risk is managed by employing sound underwriting guidelines, lending primarily to borrowers in local markets, formally reviewing the borrower’s financial condition on an ongoing basis, and generally require a guarantee (in full or part) from the primary business owners. Commercial bankers utilize SBA programs, where appropriate, as Nicolet is a preferred SBA lender.

Owner-occupied CRE loans primarily consist of loans within a diverse range of industries secured by business real estate that is occupied by borrowers who operate their businesses out of the underlying collateral and who may also have commercial and industrial loans. The credit risk related to owner-occupied CRE loans is largely influenced by general economic conditions and the resulting impact on a borrower’s operations, or on the value of underlying collateral. Credit risk is managed by employing sound underwriting guidelines, lending primarily to borrowers in local markets, periodically evaluating the underlying collateral, formally reviewing the borrower’s financial performance on an ongoing basis, and generally require a guarantee (in full or part) from the primary business owners.

Agricultural loans consist of loans secured by farmland and the related farming operations, primarily within the dairy industry. These loans support short-term needs (planting crops or buying feed), as well as longer term needs (fund cattle, equipment or real estate purchases and improvements) of our agricultural customers. The credit risk related to agricultural loans is largely influenced by the agricultural economy, including market prices for the cost of feed and the price of milk, and/or the underlying value of the farmland. Credit risk is managed by employing sound underwriting guidelines, regular personal contact with our agricultural customers, formally reviewing the borrower’s financial condition on an ongoing basis, and generally require a guarantee (in full or part) from the primary business owners. Agricultural bankers utilize FSA programs, where appropriate, as Nicolet is a preferred FSA lender.
The CRE investment loan classification primarily includes commercial-based mortgage loans that are secured by non-owner occupied, nonfarm/nonresidential real estate properties, and multi-family residential properties. Lending in this segment is focused on loans that are secured by commercial income-producing properties as opposed to speculative real estate development. The credit risk related to CRE investment loans is influenced by the cash flows of the properties, including vacancy experience, credit capacity of the tenants occupying the real estate, and general economic conditions, all of which may impact the borrower’s operations or the value of underlying collateral. Credit risk is managed by employing sound underwriting guidelines, lending primarily to borrowers in local markets, periodically evaluating the underlying collateral, regularly reviewing the borrower’s financial condition, and generally require a guarantee (in full or part) from the principals.

Construction and land development loans provide financing for the development of commercial income properties, multi-family residential development, and land designated for future development. The credit risk on construction loans depends largely upon the accuracy of the initial estimate of the property’s value at completion of construction and the estimated cost of construction. Nicolet controls the credit risk on these types of loans by making loans in familiar markets, reviewing the merits of individual projects, controlling loan structure, and monitoring the progress of projects through the analysis of construction advances. Credit risk is managed by employing sound underwriting guidelines, lending primarily to borrowers in local markets, periodically evaluating the underlying collateral, formally reviewing the borrower’s financial soundness and relationships on an ongoing basis, and generally require a guarantee (in full or part) from the principals.

Residential real estate includes residential first mortgage loans and residential junior mortgage loans (home equity lines and term loans secured by junior mortgage liens). Residential real estate also includes residential construction loans. As part of its management of originating residential mortgage loans, Nicolet generally sells the majority of its long-term, fixed-rate residential first mortgage loans in the secondary market with the servicing rights retained, and retains the adjustable-rate mortgage loans in its loan portfolio. The Company may also retain a portion of the long-term, fixed rate residential mortgage loans that do not conform with secondary market standards, but do meet other specific underwriting guidelines. Credit risk for residential real estate loans largely depends upon factors affecting the borrower’s ability to repay as well as general economic trends. Residential real estate loan underwriting is subject to specific regulations, and Nicolet typically underwrites these loans to conform with those widely accepted standards. Residential real estate loans typically have longer terms and higher balances with lower yields, but generally carry lower risks of default.

Retail loans include predominantly credit cards and other personal installment loans to individuals within Nicolet’s market areas. Retail loans are centrally underwritten utilizing the borrower’s financial history and information on the underlying collateral. Retail loans typically have shorter terms and lower balances with higher yields, but generally carry higher risks of default. Collection of these loans depends on the borrower’s financial stability, and is more likely to be affected by adverse personal circumstances.

Loans – Acquired: Loans purchased in acquisition transactions are acquired loans, and are recorded at their estimated fair value on the acquisition date.
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.
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.

The Company uses the current expected credit loss model (“CECL”) to estimate the ACL-Loans. This model considers historical loss rates and other qualitative adjustments, as well as a 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: evaluation of facts and issues related to specific loans; management’s ongoing review and grading of the loan portfolio; consideration of historical loan loss and delinquency experience on each portfolio segment; trends in past due and nonaccrual loans; the risk characteristics of the various loan segments; changes in the size and character of the loan portfolio; concentrations of loans to specific borrowers or industries; existing economic conditions; the fair value of underlying collateral; and 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.

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.
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.
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.

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, 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 on the consolidated balance sheets), while the operating lease liability represents the obligation to make lease payments arising from the lease (included in accrued interest payable and other liabilities on the consolidated balance sheets). The ROU asset and lease liability are recognized at lease commencement based on the present value of the remaining lease payments, considering a discount rate that represents Nicolet’s incremental borrowing rate. Operating lease expense is recognized on a straight-line basis over the lease term and is recognized in occupancy, equipment, and office on the consolidated statements of income.
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 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.
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. 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.
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 loans 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).At each reporting date, the MSR asset is assessed for impairment based on the estimated fair value, which considers the estimated prepayment speeds and stratifications based on the risk characteristics of the underlying loans serviced (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.  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 direct write-down permanently reduces the carrying value of the MSRs and valuation allowance, precluding subsequent recoveries.Loan Servicing Rights (“LSRs”):  The Company acquired loan servicing rights in connection with its acquisition of County Bancorp, Inc. (“County”) on December 3, 2021. 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 allowance, 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 servicing loans is based on a contractual percentage of the outstanding principal and is recorded as income when earned.
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: Stock-based payments to employees, including grants of restricted stock or stock options, are valued at fair value of the award on the date of grant and expensed on a straight-line basis as compensation expense over the applicable vesting period. A Black-Scholes model is utilized to estimate the fair value of stock options and the quoted market price of the Company’s stock at the date of grant is used to estimate the fair value of restricted stock awards.
Income Taxes
Income Taxes: The Company files a consolidated federal income tax return with its wholly owned subsidiaries and files state income tax returns with the various taxing jurisdictions based on its taxable presence. Amounts equal to tax benefits of those subsidiaries having taxable federal or state losses or credits are reimbursed by the entities that incur federal or state 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.
The Company may also recognize a liability for unrecognized tax benefits from uncertainty in income tax positions. Unrecognized tax benefits represent the differences between a tax position taken or expected to be taken in a tax return and the benefit recognized and measured in the consolidated financial statements. At December 31, 2022, the Company determined it had no significant uncertainty in income tax positions. Interest and penalties related to unrecognized tax benefits are classified as income tax expense.
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 includes the dilutive effect of outstanding common stock awards unless the impact is anti-dilutive, by application of the treasury stock method.
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 entity expects to be entitled in exchange for those goods and services. The guidance includes a five-step model to apply to revenue recognition, consisting of the following: (1) identify the contract; (2) identify the performance obligation in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue when or as the performance obligation is satisfied. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities, as well as certain noninterest income categories, such as gains or losses associated with mortgage servicing rights and income from BOLI. Descriptions of the Company’s primary revenue contracts within the scope of Topic 606 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).
Future Accounting Pronouncements Future Accounting Pronouncements: In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings (“TDRs”) and Vintage Disclosures. This ASU eliminates the accounting guidance for TDRs by creditors, while enhancing the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The ASU also requires public business entities to expand the vintage disclosures to include gross charge-offs by year of origination. The updated guidance is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. Adoption of this amendment is not expected to have a material impact on the Company’s consolidated financial statements; though, it will result in new disclosures of gross charge-offs by year of origination and on the types of loan modifications to borrowers experiencing financial difficulties. Current TDR disclosures will also be removed.In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. It provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In December 2022, the FASB issued ASU ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which defers the sunset date of the original guidance from December 31, 2022 to December 31, 2024. The Company continues to work through the cessation of LIBOR, including the modification of its loans and other financial instruments with attributes that are either directly or indirectly influenced by LIBOR. The Company expects to utilize the reference rate reform transition guidance, as applicable, and does not expect such adoption to have a material impact on its consolidated financial statements or financial disclosures. The Company will continue to assess the impact as the reference rate transition approaches June 30, 2023.
Reclassifications Reclassifications: Certain amounts in the 2021 and 2020 consolidated financial statements have been reclassified to conform to the 2022 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 deposit 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.
Securities HTM: The valuation methodologies for Securities HTM are consistent with the valuation methodologies used for Securities AFS, as discussed under “Recurring basis fair value measurements” above.
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 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: The estimated fair value of lending-related commitments (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.
v3.22.4
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Dec. 31, 2022
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
v3.22.4
ACQUISITIONS (Tables)
 12 Months Ended
Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]  
Schedule of assets acquired and liabilities assumed and preliminary purchase price allocation
A summary of the assets acquired and liabilities assumed in the Charter transaction, as of the acquisition date, including the preliminary purchase price allocation was as follows.

(In millions, except share data)Acquired from CharterFair Value AdjustmentsEstimated Fair Value
Assets Acquired:
Cash and cash equivalents$10 $— $10 
Investment securities218 — 218 
Loans848 (21)827 
ACL-Loans(9)7 (2)
Premises and equipment9 1 10 
BOLI29 — 29 
Core deposit intangible— 19 19 
Other assets5 5 10 
     Total assets$1,110 $11 $1,121 
Liabilities Assumed:
Deposits$869 $1 $870 
Borrowings161 — 161 
Other liabilities3 — 3 
     Total liabilities$1,033 $1 $1,034 
Net assets acquired$87 
Purchase Price:
Nicolet common stock issued (in shares)1,262,360 
Value of Nicolet common stock consideration$98 
Cash consideration paid39 
    Total purchase price$137 
Preliminary goodwill$50 
The carrying amount of these loans at acquisition was as follows.
(In thousands)August 26, 2022
Purchase price of PCD loans at acquisition$24,031 
Allowance for credit losses on PCD loans at acquisition1,709 
Par value of PCD acquired loans at acquisition$25,740 
A summary of the assets acquired and liabilities assumed in the County transaction, as of the acquisition date, including the purchase price allocation was as follows.

(In millions, except share data)Acquired from CountyFair Value AdjustmentsEstimated Fair Value
Assets Acquired:
Cash and cash equivalents$20 $— $20 
Investment securities301 (1)300 
Loans1,015 (1)1,014 
ACL-Loans(11)8 (3)
Premises and equipment21 (4)17 
BOLI33 — 33 
Core deposit intangible— 7 7 
Loan servicing rights20 — 20 
Other assets6 (2)4 
     Total assets$1,405 $7 $1,412 
Liabilities Assumed:
Deposits$1,027 $3 $1,030 
Borrowings218 1 219 
Other liabilities8 — 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 paid48 
    Total purchase price$224 
Write-off prior investment in County(1)
Goodwill$70 
The carrying amount of these loans at acquisition was as follows.
(In thousands)December 3, 2021
Purchase price of PCD loans at acquisition$64,720 
Allowance for credit losses on PCD loans at acquisition3,490 
Par value of PCD acquired loans at acquisition$68,210 
A summary of the assets acquired and liabilities assumed in the Mackinac transaction, as of the acquisition date, including the purchase price allocation was as follows.

(In millions, except share data)Acquired from MackinacFair Value AdjustmentsEstimated Fair Value
Assets Acquired:
Cash and cash equivalents$448 $— $448 
Investment securities104 — 104 
Loans930 10 940 
ACL-Loans(6)4 (2)
Premises and equipment24 (3)21 
BOLI16 — 16 
Goodwill20 (20)— 
Other intangibles4 3 7 
Other assets25 (3)22 
     Total assets$1,565 $(9)$1,556 
Liabilities Assumed:
Deposits$1,365 $1 $1,366 
Borrowings28 1 29 
Other liabilities13 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 paid49 
    Total purchase price$229 
Write-off prior investment in Mackinac(2)
Goodwill$84 
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 acquisition1,896 
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, 2020, 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, 2021December 31, 2020
Total revenue, net of interest expense$320,307 $308,325 
Net income$87,860 $77,641 
Diluted earnings per common share$5.91 $5.21 
v3.22.4
SECURITIES AND OTHER INVESTMENTS (Tables)
 12 Months Ended
Dec. 31, 2022
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, 2022
(in thousands)Amortized
Cost		Gross Unrealized GainsGross Unrealized LossesFair
Value
Securities AFS:
U.S. Treasury securities$192,116 $— $8,286 $183,830 
U.S. government agency securities2,133 — 33 2,100 
State, county and municipals433,733 123 35,668 398,188 
Mortgage-backed securities227,650 10 26,728 200,932 
Corporate debt securities140,712 3 8,147 132,568 
 $996,344 $136 $78,862 $917,618 
Securities HTM:
U.S. Treasury securities$497,648 $— $35,722 $461,926 
U.S. government agency securities8,744 46 — 8,790 
State, county and municipals34,874 — 3,349 31,525 
Mortgage-backed securities137,862 — 16,751 121,111 
$679,128 $46 $55,822 $623,352 
 December 31, 2021
(in thousands)Amortized
Cost		Gross Unrealized GainsGross Unrealized LossesFair
Value
Securities AFS:
U.S. Treasury securities$191,507 $— $1,235 $190,272 
U.S. government agency securities999 6 — 1,005 
State, county and municipals311,717 3,222 2,202 312,737 
Mortgage-backed securities270,017 3,090 1,845 271,262 
Corporate debt securities143,172 3,459 246 146,385 
 $917,412 $9,777 $5,528 $921,661 
Securities HTM:
U.S. Treasury securities$496,939 $— $2,738 $494,201 
U.S. government agency securities11,871 — 2 11,869 
State, county and municipals42,876 10 173 42,713 
Mortgage-backed securities100,117 89 595 99,611 
$651,803 $99 $3,508 $648,394 
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, 2022
(in thousands)Amortized
Cost		Gross Unrealized GainsGross Unrealized LossesFair
Value
Securities AFS:
U.S. Treasury securities$192,116 $— $8,286 $183,830 
U.S. government agency securities2,133 — 33 2,100 
State, county and municipals433,733 123 35,668 398,188 
Mortgage-backed securities227,650 10 26,728 200,932 
Corporate debt securities140,712 3 8,147 132,568 
 $996,344 $136 $78,862 $917,618 
Securities HTM:
U.S. Treasury securities$497,648 $— $35,722 $461,926 
U.S. government agency securities8,744 46 — 8,790 
State, county and municipals34,874 — 3,349 31,525 
Mortgage-backed securities137,862 — 16,751 121,111 
$679,128 $46 $55,822 $623,352 
 December 31, 2021
(in thousands)Amortized
Cost		Gross Unrealized GainsGross Unrealized LossesFair
Value
Securities AFS:
U.S. Treasury securities$191,507 $— $1,235 $190,272 
U.S. government agency securities999 6 — 1,005 
State, county and municipals311,717 3,222 2,202 312,737 
Mortgage-backed securities270,017 3,090 1,845 271,262 
Corporate debt securities143,172 3,459 246 146,385 
 $917,412 $9,777 $5,528 $921,661 
Securities HTM:
U.S. Treasury securities$496,939 $— $2,738 $494,201 
U.S. government agency securities11,871 — 2 11,869 
State, county and municipals42,876 10 173 42,713 
Mortgage-backed securities100,117 89 595 99,611 
$651,803 $99 $3,508 $648,394 
The following tables present gross unrealized losses and the related estimated fair value of investment securities for which an allowance for credit losses has not been recorded, aggregated by investment category and the length of time the individual securities have been in a continuous unrealized loss position.
 December 31, 2022
 Less than 12 months12 months or moreTotal
($ in thousands)Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses		Number of Securities
Securities AFS:
U.S. Treasury securities$448 $14 $183,382 $8,272 $183,830 $8,286 9 
U.S. government agency securities2,083 32 17 1 2,100 33 9 
State, county and municipals277,546 18,041 86,569 17,627 364,115 35,668 812 
Mortgage-backed securities102,108 11,320 95,614 15,408 197,722 26,728 376 
Corporate debt securities114,887 6,186 12,938 1,961 127,825 8,147 90 
 $497,072 $35,593 $378,520 $43,269 $875,592 $78,862 1,296 
Securities HTM:
U.S. Treasury securities$— $— $461,926 $35,722 $461,926 $35,722 6 
State, county and municipals17,591 1,594 11,654 1,755 29,245 3,349 58 
Mortgage-backed securities68,108 8,029 53,003 8,722 121,111 16,751 106 
$85,699 $9,623 $526,583 $46,199 $612,282 $55,822 170 
 December 31, 2021
 Less than 12 months12 months or moreTotal
($ in thousands)Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses		Number of Securities
Securities AFS:
U.S. Treasury securities$190,272 $1,235 $— $— $190,272 $1,235 8 
U.S. government agency securities160 — — — 160 — 3 
State, county and municipals103,950 2,119 1,777 83 105,727 2,202 132 
Mortgage-backed securities137,561 1,616 6,068 229 143,629 1,845 159 
Corporate debt securities23,267 246 — — 23,267 246 13 
 $455,210 $5,216 $7,845 $312 $463,055 $5,528 315 
Securities HTM:
U.S. Treasury securities$494,201 $2,738 $— $— $494,201 $2,738 6 
U.S. government agency securities11,737 2 — — 11,737 2 3 
State, county and municipals30,898 173 — — 30,898 173 46 
Mortgage-backed securities69,333 595 — — 69,333 595 72 
$606,169 $3,508 $— $— $606,169 $3,508 127 
Available for sale securities in a continuous loss position
The following tables present gross unrealized losses and the related estimated fair value of investment securities for which an allowance for credit losses has not been recorded, aggregated by investment category and the length of time the individual securities have been in a continuous unrealized loss position.
 December 31, 2022
 Less than 12 months12 months or moreTotal
($ in thousands)Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses		Number of Securities
Securities AFS:
U.S. Treasury securities$448 $14 $183,382 $8,272 $183,830 $8,286 9 
U.S. government agency securities2,083 32 17 1 2,100 33 9 
State, county and municipals277,546 18,041 86,569 17,627 364,115 35,668 812 
Mortgage-backed securities102,108 11,320 95,614 15,408 197,722 26,728 376 
Corporate debt securities114,887 6,186 12,938 1,961 127,825 8,147 90 
 $497,072 $35,593 $378,520 $43,269 $875,592 $78,862 1,296 
Securities HTM:
U.S. Treasury securities$— $— $461,926 $35,722 $461,926 $35,722 6 
State, county and municipals17,591 1,594 11,654 1,755 29,245 3,349 58 
Mortgage-backed securities68,108 8,029 53,003 8,722 121,111 16,751 106 
$85,699 $9,623 $526,583 $46,199 $612,282 $55,822 170 
 December 31, 2021
 Less than 12 months12 months or moreTotal
($ in thousands)Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses		Number of Securities
Securities AFS:
U.S. Treasury securities$190,272 $1,235 $— $— $190,272 $1,235 8 
U.S. government agency securities160 — — — 160 — 3 
State, county and municipals103,950 2,119 1,777 83 105,727 2,202 132 
Mortgage-backed securities137,561 1,616 6,068 229 143,629 1,845 159 
Corporate debt securities23,267 246 — — 23,267 246 13 
 $455,210 $5,216 $7,845 $312 $463,055 $5,528 315 
Securities HTM:
U.S. Treasury securities$494,201 $2,738 $— $— $494,201 $2,738 6 
U.S. government agency securities11,737 2 — — 11,737 2 3 
State, county and municipals30,898 173 — — 30,898 173 46 
Mortgage-backed securities69,333 595 — — 69,333 595 72 
$606,169 $3,508 $— $— $606,169 $3,508 127 
Schedule of amortized cost and fair value of investment securities by contractual maturity
The amortized cost and fair value of investment securities by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties; as this is particularly inherent in mortgage-backed securities, these securities are not included in the maturity categories below.
As of December 31, 2022
Securities AFSSecurities HTM
(in thousands)Amortized CostFair ValueAmortized CostFair Value
Due in less than one year$222,169 $218,033 $1,774 $1,748 
Due in one year through five years172,291 163,466 513,181 476,365 
Due after five years through ten years229,760 203,039 22,600 20,485 
Due after ten years144,474 132,148 3,711 3,643 
 768,694 716,686 541,266 502,241 
Mortgage-backed securities227,650 200,932 137,862 121,111 
   Total$996,344 $917,618 $679,128 $623,352 
Schedule of proceeds and realized gains or losses from the sale of AFS securities
Proceeds and realized gains / losses from the sale of securities AFS were as follows.
 Years Ended December 31,
(in thousands)202220212020
Gross gains$28 $5 $395 
Gross losses(272)(288)— 
   Gains (losses) on sales of securities AFS, net$(244)$(283)$395 
Proceeds from sales of securities AFS *$28,438 $42,973 $19,045 
* Includes proceeds of $21 million recognized on the sale of securities AFS upon acquisition of Charter for which no gain or loss was recognized in the income statement as the investment securities were marked to fair value through purchase accounting.
Summary of other investments The carrying value of other investments are summarized as follows.
(in thousands)December 31, 2022December 31, 2021
Federal Reserve Bank stock$32,219 $20,973 
FHLB stock18,625 10,545 
Equity securities with readily determinable fair values4,376 5,660 
Other investments10,066 6,830 
   Total other investments$65,286 $44,008 
v3.22.4
LOANS, ALLOWANCE FOR CREDIT LOSSES - LOANS, AND CREDIT QUALITY (Tables)
 12 Months Ended
Dec. 31, 2022
Receivables [Abstract]  
Schedule of loan composition by portfolio segment
The loan composition was as follows.
 December 31, 2022December 31, 2021
(in thousands)Amount% of TotalAmount% of Total
Commercial & industrial$1,304,819 21 %$1,042,256 23 %
Owner-occupied commercial real estate (“CRE”)954,599 15 787,189 17 
Agricultural1,088,607 18 794,728 17 
  Commercial3,348,025 54 2,624,173 57 
CRE investment1,149,949 19 818,061 18 
Construction & land development318,600 5 213,035 5 
  Commercial real estate1,468,549 24 1,031,096 23 
    Commercial-based loans4,816,574 78 3,655,269 80 
Residential construction114,392 2 70,353 1 
Residential first mortgage1,016,935 16 713,983 15 
Residential junior mortgage177,332 3 131,424 3 
  Residential real estate1,308,659 21 915,760 19 
Retail & other55,266 1 50,807 1 
    Retail-based loans1,363,925 22 966,567 20 
      Loans6,180,499 100 %4,621,836 100 %
Less ACL-Loans61,829 49,672 
   Loans, net$6,118,670 $4,572,164 
ACL-Loans to loans1.00 %1.07 %
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)202220212020
Beginning balance$49,672 $32,173 $13,972 
Adoption of CECL— — 8,488 
Initial PCD ACL— — 797 
   Total impact for adoption of CECL— — 9,285 
ACL on PCD loans acquired1,937 5,159 — 
Provision for credit losses10,950 12,500 10,300 
Charge-offs(1,033)(513)(1,689)
Recoveries303 353 305 
    Net (charge-offs) recoveries(730)(160)(1,384)
Ending balance$61,829 $49,672 $32,173 
The following table presents the balance and activity in the ACL-Loans by portfolio segment.
Year Ended December 31, 2022
(in thousands)Commercial
& industrial		Owner-
occupied
CRE		AgriculturalCRE
investment		Construction & land
development		Residential
construction		Residential
first mortgage		Residential
junior
mortgage		Retail
& other		Total
ACL-Loans *
Beginning balance$12,613 $7,222 $9,547 $8,462 $1,812 $900 $6,844 $1,340 $932 $49,672 
ACL on PCD loans1,408 384 — 38 2 — 93 12 — 1,937 
Provision2,415 2,087 215 4,075 758 512 96 493 299 10,950 
Charge-offs(190)(555)— — — — (65)— (223)(1,033)
Recoveries104 — — 169 — — 8 1 21 303 
Net (charge-offs) recoveries(86)(555)— 169 — — (57)1 (202)(730)
Ending balance$16,350 $9,138 $9,762 $12,744 $2,572 $1,412 $6,976 $1,846 $1,029 $61,829 
As % of ACL-Loans26 %15 %16 %21 %4 %2 %11 %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, 2021
(in thousands)Commercial
& industrial		Owner-
occupied
CRE		AgriculturalCRE
investment		Construction & land
development		Residential
construction		Residential
first mortgage		Residential
junior
mortgage		Retail
& other		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 loans723 1,045 2,585 415 103 — 272 13 3 5,159 
Provision196 305 5,615 2,608 725 479 1,892 237 443 12,500 
Charge-offs(242)— (48)(4)— — (113)— (106)(513)
Recoveries292 — — 2 — — 20 4 35 353 
Net (charge-offs) recoveries50 — (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-Loans25 %14 %19 %17 %4 %2 %14 %3 %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)202220212020
Provision for credit losses on:
Loans$10,950 $12,500 $10,300 
Unfunded commitments550 2,400 — 
Investment securities— — — 
  Total provision for credit losses$11,500 $14,900 $10,300 
Schedule of collateral dependent loans by portfolio segment The following table presents collateral dependent loans by portfolio segment and collateral type, including those loans with and without a related allowance allocation.
December 31, 2022
Collateral Type
(in thousands)Real EstateOther Business AssetsTotalWithout an AllowanceWith an AllowanceAllowance Allocation
Commercial & industrial$— $3,475 $3,475 $1,927 $1,548 $595 
Owner-occupied CRE4,907 — 4,907 4,699 208 53 
Agricultural13,758 6,458 20,216 14,358 5,858 261 
CRE investment2,713 — 2,713 979 1,734 212 
Construction & land development670 — 670 670 — — 
Residential construction— — — — — — 
Residential first mortgage91 — 91 91 — — 
Residential junior mortgage— — — — — — 
Retail & other— — — — — — 
Total loans$22,139 $9,933 $32,072 $22,724 $9,348 $1,121 
December 31, 2021Collateral Type
(in thousands)Real EstateOther Business AssetsTotalWithout an AllowanceWith an AllowanceAllowance Allocation
Commercial & industrial$— $2,296 $2,296 $1,842 $454 $258 
Owner-occupied CRE3,537 — 3,537 1,315 2,222 552 
Agricultural19,637 8,518 28,155 25,310 2,845 841 
CRE investment3,000 — 3,000 1,684 1,316 407 
Construction & land development1,038 — 1,038 655 383 211 
Residential construction— — — — — — 
Residential first mortgage473 — 473 473 — — 
Residential junior mortgage— — — — — — 
Retail & other— — — — — — 
Total loans$27,685 $10,814 $38,499 $31,279 $7,220 $2,269 
Schedule of past due loans by portfolio segment
The following tables present past due loans by portfolio segment.
 December 31, 2022
(in thousands)30-89 Days Past
Due (accruing)		90 Days & Over
or nonaccrual		CurrentTotal
Commercial & industrial$210 $3,328 $1,301,281 $1,304,819 
Owner-occupied CRE833 5,647 948,119 954,599 
Agricultural20 20,416 1,068,171 1,088,607 
CRE investment— 3,832 1,146,117 1,149,949 
Construction & land development— 771 317,829 318,600 
Residential construction— — 114,392 114,392 
Residential first mortgage3,628 3,780 1,009,527 1,016,935 
Residential junior mortgage236 224 176,872 177,332 
Retail & other261 82 54,923 55,266 
Total loans$5,188 $38,080 $6,137,231 $6,180,499 
Percent of total loans0.1 %0.6 %99.3 %100.0 %
 
 December 31, 2021
(in thousands)30-89 Days Past
Due (accruing)		90 Days & Over
or nonaccrual		CurrentTotal
Commercial & industrial$94 $1,908 $1,040,254 $1,042,256 
Owner-occupied CRE— 4,220 782,969 787,189 
Agricultural108 28,367 766,253 794,728 
CRE investment114 4,119 813,828 818,061 
Construction & land development— 1,071 211,964 213,035 
Residential construction246 — 70,107 70,353 
Residential first mortgage2,592 4,132 707,259 713,983 
Residential junior mortgage23 243 131,158 131,424 
Retail & other115 94 50,598 50,807 
Total loans$3,292 $44,154 $4,574,390 $4,621,836 
Percent of total loans0.1 %0.9 %99.0 %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, 2022
% to Total
December 31, 2021
% to Total
Commercial & industrial$3,328 9 %$1,908 4 %
Owner-occupied CRE5,647 15 4,220 10 
Agricultural20,416 53 28,367 64 
CRE investment3,832 10 4,119 9 
Construction & land development771 2 1,071 3 
Residential construction— — — — 
Residential first mortgage3,780 10 4,132 9 
Residential junior mortgage224 1 243 1 
Retail & other82 — 94 — 
   Nonaccrual loans$38,080 100 %$44,154 100 %
Percent of total loans0.6 %0.9 %
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 Charter, Mackinac and County have been included in the December 31, 2022 and December 31, 2021 tables based upon the actual origination date.
December 31, 2022
Amortized Cost Basis by Origination Year
(in thousands)20222021202020192018PriorRevolvingRevolving to TermTOTAL
Commercial & industrial
Grades 1-4$317,394 $226,065 $101,374 $68,884 $50,189 $77,589 $360,978 $— $1,202,473 
Grade 59,938 5,902 10,811 1,530 3,986 4,562 20,617 — 57,346 
Grade 61,459 2,283 629 511 402 11,653 14,047 — 30,984 
Grade 7556 293 3,211 2,990 775 1,070 5,121 — 14,016 
Total$329,347 $234,543 $116,025 $73,915 $55,352 $94,874 $400,763 $— $1,304,819 
Owner-occupied CRE
Grades 1-4$151,391 $190,313 $105,156 $100,606 $91,479 $252,574 $6,734 $— $898,253 
Grade 55,241 3,192 4,287 2,163 4,791 14,632 348 — 34,654 
Grade 6— — 763 2,361 — 877 — — 4,001 
Grade 7227 706 6,344 616 — 9,798 — — 17,691 
Total$156,859 $194,211 $116,550 $105,746 $96,270 $277,881 $7,082 $— $954,599 
Agricultural
Grades 1-4$275,208 $145,272 $85,413 $25,463 $19,687 $130,849 $249,033 $— $930,925 
Grade 513,295 18,178 2,694 1,992 517 43,927 21,199 — 101,802 
Grade 6115 1,457 28 33 — 5,258 429 — 7,320 
Grade 77,165 2,632 720 1,977 4,611 19,948 11,507 — 48,560 
Total$295,783 $167,539 $88,855 $29,465 $24,815 $199,982 $282,168 $— $1,088,607 
CRE investment
Grades 1-4$205,930 $229,252 $192,527 $134,301 $79,649 $248,595 $11,383 $— $1,101,637 
Grade 5567 1,649 3,578 4,266 3,086 24,897 — — 38,043 
Grade 6— — — 1,170 2,396 2,483 206 — 6,255 
Grade 7— — 121 299 245 3,140 209 — 4,014 
Total$206,497 $230,901 $196,226 $140,036 $85,376 $279,115 $11,798 $— $1,149,949 
Construction & land development
Grades 1-4$104,804 $140,727 $12,188 $9,747 $23,811 $13,138 $13,235 $— $317,650 
Grade 537 — — 14 — 95 — — 146 
Grade 6— — — — — — — — — 
Grade 733 — — — — 771 — — 804 
Total$104,874 $140,727 $12,188 $9,761 $23,811 $14,004 $13,235 $— $318,600 
Residential construction
Grades 1-4$92,417 $16,774 $966 $123 $336 $229 $3,547 $— $114,392 
Grade 5— — — — — — — — — 
Grade 6— — — — — — — — — 
Grade 7— — — — — — — — — 
Total$92,417 $16,774 $966 $123 $336 $229 $3,547 $— $114,392 
Residential first mortgage
Grades 1-4$318,628 $272,011 $147,857 $68,975 $31,208 $162,153 $2,080 $3 $1,002,915 
Grade 51,494 758 997 1,803 2,272 465 — — 7,789 
Grade 6— — — 711 — — — — 711 
Grade 7154 329 188 349 197 4,303 — — 5,520 
Total$320,276 $273,098 $149,042 $71,838 $33,677 $166,921 $2,080 $3 $1,016,935 
Residential junior mortgage
Grades 1-4$10,119 $4,580 $5,207 $3,151 $1,573 $3,409 $142,784 $5,762 $176,585 
Grade 5— — — — — 143 165 — 308 
Grade 6— — — — — — — — — 
Grade 7— 206 — — — 24 209 — 439 
Total$10,119 $4,786 $5,207 $3,151 $1,573 $3,576 $143,158 $5,762 $177,332 
Retail & other
Grades 1-4$12,318 $8,957 $4,221 $3,188 $1,035 $24,950 $492 $— $55,161 
Grade 5— 23 — — — — — — 23 
Grade 6— — — — — — — — — 
Grade 7— 23 22 2 30 5 — — 82 
Total$12,318 $9,003 $4,243 $3,190 $1,065 $24,955 $492 $— $55,266 
Total loans$1,528,490 $1,271,582 $689,302 $437,225 $322,275 $1,061,537 $864,323 $5,765 $6,180,499 
December 31, 2021Amortized Cost Basis by Origination Year
(in thousands)20212020201920182017PriorRevolvingRevolving to TermTOTAL
Commercial & industrial
Grades 1-4$282,369 $146,131 $99,702 $69,478 $50,557 $71,247 $288,115 $— $1,007,599 
Grade 51,685 1,905 4,369 5,809 4,860 2,097 8,408 — 29,133 
Grade 6598 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 57,753 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 514,796 4,183 2,391 915 3,912 48,373 26,778 — 101,348 
Grade 638 38 36 — 86 1,049 85 — 1,332 
Grade 73,284 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 511,081 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 5640 — 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 5713 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 $4,621,836 
Loan composition of nonaccrual and performing TDRs The following table presents the loan composition of nonaccrual and performing TDRs.
 December 31, 2022December 31, 2021
(in thousands)PerformingNonaccrualTotalPerformingNonaccrualTotal
Commercial & industrial$— $261 $261 $— $197 $197 
Owner-occupied CRE— 2,377 2,377 3,466 2,888 6,354 
Agricultural— 15,037 15,037 — 16,835 16,835 
CRE investment— 293 293 918 — 918 
Construction & land development— 75 75 — 308 308 
Residential first mortgage— 12 12 913 15 928 
Residential junior mortgage— — — 146 — 146 
Total$— $18,055 $18,055 $5,443 $20,243 $25,686 
The following table presents the number of loans modified in a TDR, pre-modification loan balance, and post-modification loan balance by loan composition.

 December 31, 2022December 31, 2021
($ in thousands)Number of LoansPre-Modification BalanceCurrent BalanceNumber of LoansPre-Modification BalanceCurrent Balance
Commercial & industrial3 $349 $261 2 $200 $197 
Owner-occupied CRE4 5,471 2,377 6 6,913 6,354 
Agricultural29 17,405 15,037 31 17,228 16,835 
CRE investment1 296 293 1 919 918 
Construction & land development1 533 75 1 533 308 
Residential first mortgage1 17 12 2 931 928 
Residential junior mortgage— — — 1 166 146 
Total39 $24,071 $18,055 44 $26,890 $25,686 
v3.22.4
PREMISES AND EQUIPMENT (Tables)
 12 Months Ended
Dec. 31, 2022
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, 2022December 31, 2021
Land$14,841 $10,806 
Land improvements5,361 3,896 
Building and improvements89,630 79,754 
Leasehold improvements7,079 6,514 
Furniture and equipment35,717 30,741 
 152,628 131,711 
Less accumulated depreciation and amortization43,672 37,145 
Premises and equipment, net$108,956 $94,566 
Schedule of operating lease
A summary of net lease cost and selected other information related to operating leases was as follows.
Years Ended
($ in thousands)December 31, 2022December 31, 2021December 31, 2020
Net lease cost:
Operating lease cost$1,778 $1,018 $834 
Variable lease cost448 234 169 
  Net lease cost$2,226 $1,252 $1,003 
Selected other operating lease information:
Weighted average remaining lease term (years)5.46.35.1
Weighted average discount rate2.3 %1.5 %2.0 %
Schedule of maturity of remaining lease liabilities
The following table summarizes the maturity of remaining lease liabilities.
Years Ending December 31,(in thousands)
2023$2,437 
20242,200 
20251,876 
20261,688 
20271,519 
Thereafter1,417 
    Total future minimum lease payments11,137 
Less: amount representing interest(252)
   Present value of net future minimum lease payments$10,885 
v3.22.4
GOODWILL AND OTHER INTANGIBLES AND SERVICING RIGHTS (Tables)
 12 Months Ended
Dec. 31, 2022
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, 2022December 31, 2021
Goodwill$367,387 $317,189 
Core deposit intangibles32,701 19,445 
Customer list intangibles2,350 2,858 
Other intangibles35,051 22,303 
Goodwill and other intangibles, net$402,438 $339,492 
Schedule of goodwill
(in thousands)December 31, 2022December 31, 2021
Goodwill:  
Goodwill at beginning of year$317,189 $163,151 
Acquisitions49,970 154,038 
Purchase accounting adjustment228 — 
Goodwill at end of year$367,387 $317,189 
Schedule of other intangibles
(in thousands)December 31, 2022December 31, 2021
Core deposit intangibles:  
Gross carrying amount$60,724 $41,360 
Accumulated amortization(28,023)(21,915)
Net book value$32,701 $19,445 
Additions during the period$19,364 $13,595 
Amortization during the period$6,108 $2,987 
Customer list intangibles:  
Gross carrying amount$5,523 $5,523 
Accumulated amortization(3,173)(2,665)
Net book value$2,350 $2,858 
Amortization during the period$508 $507 
Schedule of mortgage servicing rights A summary of the changes in the MSR asset was as follows.
(in thousands)December 31, 2022December 31, 2021
MSR asset:  
MSR asset at beginning of year$13,636 $10,230 
Capitalized MSR2,327 4,329 
MSR asset acquired— 1,322 
Amortization during the period(2,883)(2,245)
MSR asset at end of year$13,080 $13,636 
Valuation allowance at beginning of year$(1,200)$(1,000)
Additions— (500)
Reversals700 300 
Valuation allowance at end of year$(500)$(1,200)
MSR asset, net$12,580 $12,436 
Fair value of MSR asset at end of period$17,215 $15,599 
Residential mortgage loans serviced for others$1,637,109 $1,583,577 
Net book value of MSR asset to loans serviced for others0.77 %0.79 %
A summary of the changes in the LSR asset was as follows.
(in thousands)December 31, 2022December 31, 2021
LSR asset:  
LSR asset at beginning of year$20,055 $— 
LSR asset acquired— 20,055 
Amortization during the period(9,016)— 
LSR asset at end of year$11,039 $20,055 
Agricultural loans serviced for others$538,392 $793,655 
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 servicing assets. The projections are based on existing asset balances, the current interest rate environment and prepayment speeds as of December 31, 2022. The actual amortization expense the Company recognizes in any given period may be significantly different depending upon acquisition or sale activities, changes in interest rates, prepayment speeds, market conditions, regulatory requirements and events or circumstances that indicate the carrying amount of an asset may not be recoverable.
(in thousands)Core deposit
intangibles		Customer list
intangibles		MSR assetLSR asset
Years Ending December 31,   
2023$7,589 $483 $2,402 $2,208 
20246,298 449 2,657 1,962 
20255,161 449 1,913 1,717 
20263,983 249 1,414 1,472 
20273,218 166 1,413 1,227 
Thereafter6,452 554 3,281 2,453 
Total$32,701 $2,350 $13,080 $11,039 
v3.22.4
OTHER REAL ESTATE OWNED (Tables)
 12 Months Ended
Dec. 31, 2022
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)20222021
Balance at beginning of period$11,955 $3,608 
Transfer in loans at net realizable value183 334 
Transfer in former bank branch properties at net realizable value25 7,843 
Sales proceeds(13,150)(2,743)
Net gain from sales3,206 597 
Write-downs(244)(28)
Acquired balance, net— 2,344 
Balance at end of period$1,975 $11,955 
v3.22.4
DEPOSITS (Tables)
 12 Months Ended
Dec. 31, 2022
Deposits [Abstract]  
Schedule of deposit composition
The deposit composition was as follows.
 December 31, 2022December 31, 2021
(in thousands)Amount% of TotalAmount% of Total
Noninterest-bearing demand$2,361,816 33 %$1,975,705 31 %
Interest-bearing demand1,279,850 18 %1,272,858 20 %
Money market1,707,619 24 %1,561,966 24 %
Savings931,417 13 %803,197 12 %
Time898,219 12 %852,190 13 %
   Total deposits$7,178,921 100 %$6,465,916 100 %
Schedule of maturities of time deposits
At December 31, 2022, the scheduled maturities of time deposits were as follows.
Years Ending December 31,(in thousands)
2023$464,568 
2024288,059 
2025112,284 
202620,321 
202712,217 
Thereafter770 
Total time deposits$898,219 
v3.22.4
SHORT AND LONG-TERM BORROWINGS (Tables)
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Schedule of long-term borrowings The components of long-term borrowings were as follows.
(in thousands)December 31, 2022December 31, 2021
FHLB advances$33,000 $25,000 
Junior subordinated debentures39,720 38,885 
Subordinated notes152,622 153,030 
Total long-term borrowings
$225,342 $216,915 
Schedule of maturity of FHLB advances
The following table shows the maturity schedule of the FHLB advances as of December 31, 2022.
Maturing in:(in thousands)
2023$— 
2024— 
20255,000 
2026— 
2027— 
Thereafter28,000 
 $33,000 
Schedule of junior subordinated debentures
The following table shows the breakdown of junior subordinated debentures and subordinated notes.
As of 12/31/2022
As of 12/31/2021
(in thousands)Maturity
Date		Interest
 Rate		Par

Unamortized Premium /(Discount) / Debt Issue Costs (1)

Carrying
Value		Interest
 Rate
Carrying
Value
Junior Subordinated Debentures:
Mid-Wisconsin Statutory Trust I (2)
12/15/20356.20 %$10,310 $(2,576)$7,734 1.63 %$7,537 
Baylake Capital Trust II (3)
9/30/20366.08 %16,598 (3,174)13,424 1.57 %13,187 
First Menasha Statutory Trust (4)
3/17/20347.53 %5,155 (487)4,668 3.01 %4,624 
County Bancorp Statutory Trust II (5)
9/15/20356.30 %6,186 (909)5,277 1.73 %5,061 
County Bancorp Statutory Trust III (6)
6/15/20366.46 %6,186 (967)5,219 1.89 %5,121 
Fox River Valley Capital Trust (7)
5/30/20336.40 %3,610 (212)3,398 6.40 %3,355 
Total$48,045 $(8,325)$39,720 $38,885 
Subordinated Notes:
Subordinated Notes due 20317/15/20313.13 %$100,000 $(733)$99,267 3.13 %$99,057 
County Subordinated Notes due 20286/1/20285.88 %30,000 119 30,119 5.88 %30,402 
County Subordinated Notes due 20306/30/20307.00 %22,400 836 23,236 7.00 %23,571 
Total$152,400 $222 $152,622 $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.
v3.22.4
STOCK-BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 31, 2022
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.
 202220212020
Dividend yield— %— %— %
Expected volatility30 %30 %25 %
Risk-free interest rate3.03 %1.19 %1.35 %
Expected average life7 years7 years7 years
Weighted average per share fair value of options$30.99 $26.33 $20.55 
Schedule of stock option activity
A summary of the Company’s stock option activity is summarized below.
Stock OptionsOption Shares
Outstanding		Weighted Average
Exercise Price		Weighted Average Remaining Life (Years)Aggregate Intrinsic Value (in thousands)
Outstanding – December 31, 2019
1,443,733 $48.75 
Granted54,500 69.44 
Exercise of stock options *(60,773)26.51 
Forfeited— — 
Outstanding – December 31, 2020
1,437,460 $50.47 6.6$23,840 
Granted450,000 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 
Granted132,929 81.04   
Exercise of stock options *(82,611)41.84   
Forfeited(30,500)75.08   
Outstanding – December 31, 2022
1,853,064 $59.79 5.9$37,526 
Exercisable – December 31, 2022
1,267,935 $51.83 4.8$35,461 
*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 7,957 shares, 10,354 shares, and 18,952 shares were surrendered during 2022, 2021, and 2020, respectively.
Schedule of options outstanding
The following options were outstanding at December 31, 2022.
 Number of SharesWeighted Average
Exercise Price		Weighted Average
Remaining Life (Years)
 OutstandingExercisableOutstandingExercisableOutstandingExercisable
$23.80 – $40.00
154,585 154,585 $32.21 $32.21 2.92.9
$40.01 – $50.00
751,450 751,450 48.85 48.85 4.44.4
$50.01 – $65.00
163,500 151,400 56.44 56.41 5.15.0
$65.01 – $75.00
277,100 135,800 71.02 70.67 7.37.0
$75.01 – $94.90
506,429 74,700 79.37 78.77 8.78.4
 1,853,064 1,267,935 $59.79 $51.83 5.94.8
Schedule of restricted stock
A summary of the Company’s restricted stock activity is summarized below.
Restricted StockRestricted Shares
Outstanding		Weighted Average Grant
Date Fair  Value
Outstanding – December 31, 2019
22,521 $44.94 
Granted19,672 60.29 
Vested *(23,268)50.90 
Forfeited— — 
Outstanding – December 31, 2020
18,925 $53.57 
Granted33,153 75.83 
Vested *(25,831)64.53 
Forfeited(446)41.44 
Outstanding – December 31, 2021
25,801 $71.42 
Granted72,948 76.81 
Vested *(24,659)72.64 
Forfeited(600)56.01 
Outstanding – December 31, 2022
73,490 $76.49 
*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 2,249 shares, 3,215 shares, and 4,733 shares were surrendered during 2022, 2021, and 2020, respectively.
v3.22.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2022
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)202220212020
Current$44,384 $14,138 $29,764 
Deferred(12,907)6,332 (9,288)
Income tax expense$31,477 $20,470 $20,476 
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)202220212020
Tax on pretax income, less noncontrolling interest, at statutory rates$26,405 $17,023 $16,926 
State income taxes, net of federal effect7,847 5,064 5,030 
Tax-exempt interest income(1,037)(517)(513)
Increase in cash surrender value life insurance(1,040)(570)(738)
Stock-based employee compensation(1,101)(618)(839)
Executive compensation82 163 272 
Other, net321 (75)338 
Income tax expense$31,477 $20,470 $20,476 
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, 2022December 31, 2021
Deferred tax assets:  
ACL-Loans$22,379 $14,650 
Net operating loss carryforwards2,721 3,800 
Compensation10,274 9,194 
Other1,759 2,605 
Other real estate672 1,364 
Basis difference on acquired securities3,172 — 
Unrealized loss on securities AFS21,011 — 
Total deferred tax assets61,988 31,613 
Deferred tax liabilities:  
Premises and equipment(3,000)(3,860)
Prepaid expenses(801)(1,110)
Basis difference on acquired securities— (1,678)
Core deposit and other intangibles(8,817)(5,278)
Purchase accounting adjustments to liabilities(1,595)(1,725)
MSR and LSR assets(6,570)(8,726)
Other(513)(2,462)
Unrealized gain on securities AFS— (1,392)
Total deferred tax liabilities(21,296)(26,231)
Net deferred tax assets$40,692 $5,382 
v3.22.4
COMMITMENTS AND CONTINGENCIES (Tables)
 12 Months Ended
Dec. 31, 2022
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, 2022December 31, 2021
Commitments to extend credit$1,850,601 $1,433,881 
Financial standby letters of credit26,530 13,562 
Performance standby letters of credit9,375 7,336 
v3.22.4
RELATED PARTY TRANSACTIONS (Tables)
 12 Months Ended
Dec. 31, 2022
Related Party Transactions [Abstract]  
Summary of Loans to Related Parties A summary of the loans to related parties was as follows.
(in thousands)December 31, 2022
Balance at beginning of year$112,917 
New loans20,713 
Repayments(21,131)
Changes due to status of executive officers and directors(1,792)
Balance at end of year$110,707 
v3.22.4
ASSETS GAINS (LOSSES), NET (Tables)
 12 Months Ended
Dec. 31, 2022
Assets Gains (Losses), Net [Abstract]  
Schedule of components of the net gain (losses) on assets
Components of the net gains (losses) on assets are as follows.
Years Ended December 31,
(in thousands)202220212020
Gains (losses) on sales of securities AFS, net$(244)$(283)$395 
Gains (losses) on equity securities, net(127)3,445 (987)
Gains (losses) on sales of OREO, net3,206 597 157 
Write-downs of OREO(244)(28)(1,040)
Write-down of other investment— — (100)
Gains (losses) on sales of other investments, net531 550 — 
Gains (losses) on sales or dispositions of other assets, net8 (100)(230)
Asset gains (losses), net$3,130 $4,181 $(1,805)
v3.22.4
REGULATORY CAPITAL REQUIREMENTS (Tables)
 12 Months Ended
Dec. 31, 2022
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.
ActualFor Capital Adequacy
Purposes
To Be Well Capitalized
Under Prompt Corrective
Action Provisions (2)
(in thousands)Amount
Ratio (1)
Amount
Ratio (1)
Amount
Ratio (1)
December 31, 2022      
Company      
Total risk-based capital$889,763 12.3 %$577,138 8.0 %  
Tier 1 risk-based capital684,280 9.5 432,853 6.0   
Common equity Tier 1 capital646,341 9.0 324,640 4.5   
Leverage684,280 8.2 335,621 4.0   
Bank      
Total risk-based capital$816,951 11.3 %$576,241 8.0 %$720,301 10.0 %
Tier 1 risk-based capital764,090 10.6 432,181 6.0 576,241 8.0 
Common equity Tier 1 capital764,090 10.6 324,135 4.5 468,196 6.5 
Leverage764,090 9.1 334,916 4.0 418,645 5.0 
December 31, 2021      
Company      
Total risk-based capital$793,410 13.8 %$459,648 8.0 %  
Tier 1 risk-based capital604,199 10.5 344,736 6.0   
Common equity Tier 1 capital567,095 9.9 258,552 4.5   
Leverage604,199 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 capital664,688 11.6 344,607 6.0 459,476 8.0 
Common equity Tier 1 capital664,688 11.6 258,455 4.5 373,324 6.5 
Leverage664,688 10.3 256,990 4.0 321,237 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.
v3.22.4
FAIR VALUE MEASUREMENTS (Tables)
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Schedule of assets and liabilities measured at fair value on a recurring basis
The following table presents the balances of assets and liabilities measured at fair value on a recurring basis.
(in thousands) Fair Value Measurements Using
Measured at Fair Value on a Recurring Basis:TotalLevel 1Level 2Level 3
December 31, 2022    
U.S. Treasury securities$183,830 $— $183,830 $— 
U.S. government agency securities2,100 — 2,100 — 
State, county and municipals398,188 — 396,315 1,873 
Mortgage-backed securities200,932 — 199,951 981 
Corporate debt securities132,568 — 127,269 5,299 
Securities AFS$917,618 $— $909,465 $8,153 
Other investments (equity securities)$4,376 $4,376 $— $— 
Derivative assets— — — — 
Derivative liabilities— — — — 
December 31, 2021    
U.S. Treasury securities$190,272 $— $190,272 $— 
U.S. government agency securities1,005 — 1,005 — 
State, county and municipals312,737 — 310,316 2,421 
Mortgage-backed securities271,262 — 270,260 1,002 
Corporate debt securities146,385 — 141,743 4,642 
Securities AFS$921,661 $— $913,596 $8,065 
Other investments (equity securities)$5,660 $5,660 $— $— 
Derivative assets1,064 — 1,064 — 
Derivative liabilities1,064 — 1,064 — 
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, 2022December 31, 2021
Balance at beginning of year$8,065 $3,130 
Acquired balances750 4,935 
Paydowns/Sales/Settlements(451)— 
Unrealized gains / (losses)(211)— 
Balance at end of year$8,153 $8,065 
Schedule of assets measured at fair value on a nonrecurring basis
The following table presents the Company’s assets measured at fair value on a nonrecurring basis, aggregated by 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:TotalLevel 1Level 2Level 3
December 31, 2022    
Collateral dependent loans$30,951 $— $— $30,951 
OREO1,975 — — 1,975 
MSR asset12,580 — — 12,580 
December 31, 2021    
Collateral dependent loans$36,230 $— $— $36,230 
OREO11,955 — — 11,955 
MSR asset12,436 — — 12,436 
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, 2022
(in thousands)Carrying
Amount		Estimated 
Fair Value		Level 1Level 2Level 3
Financial assets:     
Cash and cash equivalents$154,723 $154,723 $154,723 $— $— 
Certificates of deposit in other banks12,518 12,407 — 12,407 — 
Securities AFS917,618 917,618 — 909,465 8,153 
Securities HTM679,128 623,352 — 623,352 — 
Other investments65,286 65,286 4,376 52,093 8,817 
Loans held for sale1,482 1,529 — 1,529 — 
Loans, net6,118,670 5,863,570 — — 5,863,570 
MSR asset12,580 17,215 — — 17,215 
Accrued interest receivable21,275 21,275 21,275 — — 
Financial liabilities:
Deposits$7,178,921 $7,172,779 $— $— $7,172,779 
Short-term borrowings317,000 317,000 317,000 — — 
Long-term borrowings225,342 220,513 — 33,001 187,512 
Accrued interest payable4,265 4,265 4,265 — — 
December 31, 2021
(in thousands)Carrying
Amount		Estimated 
Fair Value		Level 1Level 2Level 3
Financial assets:     
Cash and cash equivalents$595,292 $595,292 $595,292 $— $— 
Certificates of deposit in other banks21,920 22,236 — 22,236 — 
Securities AFS921,661 921,661 — 913,596 8,065 
Securities HTM651,803 648,394 — 648,394 — 
Other investments44,008 44,008 5,660 32,110 6,238 
Loans held for sale6,447 6,616 — 6,616 — 
Loans, net4,572,164 4,606,851 — — 4,606,851 
MSR asset12,436 15,599 — — 15,599 
Accrued interest receivable15,277 15,277 15,277 — — 
Financial liabilities:
Deposits$6,465,916 $6,463,064 $— $— $6,463,064 
Long-term borrowings216,915 216,092 — 25,097 190,995 
Accrued interest payable3,078 3,078 3,078 — — 
v3.22.4
PARENT COMPANY ONLY FINANCIAL INFORMATION (Tables)
 12 Months Ended
Dec. 31, 2022
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 SheetsDecember 31,
(in thousands)20222021
Assets  
Cash and due from subsidiary$63,927 $84,656 
Investments10,313 9,684 
Investments in subsidiaries1,094,063 998,032 
Other assets392 1,503 
Total assets$1,168,695 $1,093,875 
Liabilities and Stockholders’ Equity  
Junior subordinated debentures$39,720 $38,885 
Subordinated notes152,622 153,030 
Other liabilities3,824 10,069 
Stockholders’ equity972,529 891,891 
Total liabilities and stockholders’ equity$1,168,695 $1,093,875 
Statements of IncomeYears Ended December 31,
(in thousands)202220212020
Interest income$81 $18 $39 
Interest expense8,687 2,959 2,313 
Net interest expense(8,606)(2,941)(2,274)
Dividend income from subsidiaries77,775 65,000 60,215 
Operating expense(457)(2,562)(886)
Gain (loss) on investments, net395 3,995 (1,087)
Income tax benefit2,373 437 1,102 
Earnings before equity in undistributed income (loss) of subsidiaries71,480 63,929 57,070 
Equity in undistributed income (loss) of subsidiaries22,780 (3,277)3,052 
Net income attributable to Nicolet Bankshares, Inc.$94,260 $60,652 $60,122 
Statements of Cash FlowsYears Ended December 31,
(in thousands)202220212020
Cash Flows From Operating Activities:   
Net income attributable to Nicolet Bankshares, Inc.$94,260 $60,652 $60,122 
Adjustments to reconcile net income to net cash provided by operating activities:
Accretion of discounts on borrowings427 584 486 
(Gain) loss on investments, net(395)(3,995)1,087 
Change in other assets and liabilities, net(1,775)1,013 1,786 
Equity in undistributed (income) loss of subsidiaries, net of dividends(22,780)3,277 (3,052)
Net cash provided by operating activities69,737 61,531 60,429 
Cash Flows from Investing Activities:   
Proceeds from sale of investments1,835 4,105 185 
Purchases of investments(2,116)(5,049)(1,179)
Net cash paid in business combinations(31,970)(63,892)(21,644)
Net cash used in investing activities(32,251)(64,836)(22,638)
Cash Flows From Financing Activities:   
Purchase and retirement of common stock(61,497)(62,583)(42,088)
Proceeds from issuance of common stock, net3,282 2,382 2,055 
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(58,215)37,963 (58,219)
Net increase (decrease) in cash and due from subsidiary(20,729)34,658 (20,428)
Beginning cash and due from subsidiary84,656 49,998 70,426 
Ending cash and due from subsidiary$63,927 $84,656 $49,998 
v3.22.4
EARNINGS PER COMMON SHARE (Tables)
 12 Months Ended
Dec. 31, 2022
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)202220212020
Net income attributable to Nicolet Bankshares, Inc.$94,260 $60,652 $60,122 
Weighted average common shares outstanding13,909 10,736 10,337 
Effect of dilutive common stock awards466 409 204 
Diluted weighted average common shares outstanding14,375 11,145 10,541 
Basic earnings per common share$6.78 $5.65 $5.82 
Diluted earnings per common share$6.56 $5.44 $5.70 
v3.22.4
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details)
 3 Months Ended 12 Months Ended
Dec. 31, 2022
USD ($)
subsidiary
Dec. 31, 2022
USD ($)
subsidiary
segment
Sep. 30, 2022
Dec. 31, 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    
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
Investments recorded at hypothetical liquidation book value | $ $ 7,600,000 $ 7,600,000    
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    
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%      
v3.22.4
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Estimated Useful Lives Of Premises and Equipment (Details)
 12 Months Ended
Dec. 31, 2022
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
v3.22.4
ACQUISITIONS - Narrative (Details)
$ / shares in Units, $ in Thousands
 12 Months Ended
Aug. 26, 2022
USD ($)
$ / shares
shares
Dec. 03, 2021
USD ($)
$ / shares
shares
Sep. 03, 2021
USD ($)
$ / shares
shares
Aug. 21, 2020
USD ($)
branch
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Aug. 20, 2020
Business Acquisition [Line Items]              
Acquisitions         $ 49,970 $ 154,038  
Advantage Community Bancshares, Inc.              
Business Acquisition [Line Items]              
Percentage of assets represented by acquiree             0.04
Charter Bankshares, Inc.              
Business Acquisition [Line Items]              
Entity shares issued per acquiree share (in shares) | shares 15.458            
Cash paid per acquiree share (in dollars per share) | $ / shares $ 475            
Nicolet common stock issued (in shares) | shares 1,262,360            
Value of Nicolet common stock consideration $ 98,000            
Cash consideration paid 39,000            
Total purchase price 137,000            
Total assets 1,110,000       1,121,000    
Acquisitions $ 50,000            
County Bancorp, Inc.              
Business Acquisition [Line Items]              
Entity shares issued per acquiree share (in shares) | shares   0.48          
Cash paid per acquiree share (in dollars per share) | $ / shares   $ 37.18          
Nicolet common stock issued (in shares) | shares   2,366,243          
Value of Nicolet common stock consideration   $ 176,000          
Cash consideration paid   48,000          
Total purchase price   $ 224,000          
Shares exchanged for cash (in shares) | shares   1,237,000          
Total assets   $ 1,405,000     $ 1,412,000    
Acquisitions   $ 70,000          
Mackinac Financial Corporation              
Business Acquisition [Line Items]              
Entity shares issued per acquiree share (in shares) | shares     0.22        
Cash paid per acquiree share (in dollars per share) | $ / shares     $ 4.64        
Nicolet common stock issued (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%        
Acquisitions     $ 84,000        
Advantage Community Bancshares, Inc.              
Business Acquisition [Line Items]              
Number of branches | branch       4      
Total assets       $ 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      
v3.22.4
ACQUISITIONS - Summary of the Assets Acquired and Liabilities Assumed, including Preliminary Purchase Price Allocation (Details) - USD ($)
$ in Thousands
 4 Months Ended 12 Months Ended 13 Months Ended
Aug. 26, 2022
Dec. 03, 2021
Dec. 31, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2022
Purchase Price:            
Goodwill       $ 49,970 $ 154,038  
Charter Bankshares, Inc.            
Assets Acquired:            
Cash and cash equivalents $ 10,000   $ 10,000 10,000   $ 10,000
Investment securities 218,000   218,000 218,000   218,000
Loans 848,000   827,000 827,000   827,000
ACL-Loans (9,000)   (2,000) (2,000)   (2,000)
Premises and equipment 9,000   10,000 10,000   10,000
BOLI 29,000   29,000 29,000   29,000
Other intangibles 0   19,000 19,000   19,000
Other assets 5,000   10,000 10,000   10,000
Total assets 1,110,000   1,121,000 1,121,000   1,121,000
Liabilities Assumed:            
Deposits 869,000   870,000 870,000   870,000
Borrowings 161,000   161,000 161,000   161,000
Other liabilities 3,000   3,000 3,000   3,000
Total liabilities $ 1,033,000   1,034,000 1,034,000   1,034,000
Net assets acquired     87,000 87,000   87,000
Assets Acquired:            
Cash and cash equivalents     0      
Investment securities     0      
Loans     (21,000)      
ACL-Loans     7,000      
Premises and equipment     1,000      
BOLI     0      
Core deposit intangible     19,000      
Other assets     5,000      
Total assets     11,000      
Liabilities Assumed:            
Deposits     1,000      
Borrowings     0      
Other liabilities     0      
Total liabilities     1,000      
Purchase Price:            
Nicolet common stock issued (in shares) 1,262,360          
Value of Nicolet common stock consideration $ 98,000          
Cash consideration paid 39,000          
Total purchase price 137,000          
Goodwill $ 50,000          
County Bancorp, Inc.            
Assets Acquired:            
Cash and cash equivalents   $ 20,000 20,000 20,000   20,000
Investment securities   301,000 300,000 300,000   300,000
Loans   1,015,000 1,014,000 1,014,000   1,014,000
ACL-Loans   (11,000) (3,000) (3,000)   (3,000)
Premises and equipment   21,000 17,000 17,000   17,000
BOLI   33,000 33,000 33,000   33,000
Other intangibles   0 7,000 7,000   7,000
Loan servicing rights   20,000 20,000 20,000   20,000
Other assets   6,000 4,000 4,000   4,000
Total assets   1,405,000 1,412,000 1,412,000   1,412,000
Liabilities Assumed:            
Deposits   1,027,000 1,030,000 1,030,000   1,030,000
Borrowings   218,000 219,000 219,000   219,000
Other liabilities   8,000 8,000 8,000   8,000
Total liabilities   $ 1,253,000 1,257,000 1,257,000   1,257,000
Net assets acquired     $ 155,000 $ 155,000   155,000
Assets Acquired:            
Cash and cash equivalents           0
Investment securities           (1,000)
Loans           (1,000)
ACL-Loans           8,000
Premises and equipment           (4,000)
BOLI           0
Core deposit intangible           7,000
Loan servicing rights           0
Other assets           (2,000)
Total assets           7,000
Liabilities Assumed:            
Deposits           3,000
Borrowings           1,000
Other liabilities           0
Total liabilities           $ 4,000
Purchase Price:            
Nicolet common stock issued (in shares)   2,366,243        
Value of Nicolet common stock consideration   $ 176,000        
Cash consideration paid   48,000        
Total purchase price   224,000        
Write-off of prior investment   (1,000)        
Goodwill   $ 70,000        
v3.22.4
ACQUISITIONS - Summary of the Assets Acquired (Including Goodwill) and Liabilities Assumed, including Preliminary Purchase Price Allocation (Details) - USD ($)
$ in Thousands
 12 Months Ended 16 Months Ended
Sep. 03, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2022
Dec. 31, 2020
Assets Acquired:          
Goodwill   $ 367,387 $ 317,189 $ 367,387 $ 163,151
Assets Acquired:          
Goodwill   228 0    
Purchase Price:          
Goodwill   49,970 $ 154,038    
Mackinac Financial Corporation          
Assets Acquired:          
Cash and cash equivalents $ 448,000 448,000   448,000  
Investment securities 104,000 104,000   104,000  
Loans 930,000 940,000   940,000  
ACL-Loans (6,000) (2,000)   (2,000)  
Premises and equipment 24,000 21,000   21,000  
BOLI 16,000 16,000   16,000  
Goodwill 20,000 0   0  
Other intangibles 4,000 7,000   7,000  
Other assets 25,000 22,000   22,000  
Total assets 1,565,000 1,556,000   1,556,000  
Liabilities Assumed:          
Deposits 1,365,000 1,366,000   1,366,000  
Borrowings 28,000 29,000   29,000  
Other liabilities 13,000 14,000   14,000  
Total liabilities $ 1,406,000 1,409,000   1,409,000  
Net assets acquired   $ 147,000   147,000  
Assets Acquired:          
Cash and cash equivalents       0  
Investment securities       0  
Loans       10,000  
ACL-Loans       4,000  
Premises and equipment       (3,000)  
BOLI       0  
Goodwill       (20,000)  
Core deposit intangible       3,000  
Other assets       (3,000)  
Total assets       (9,000)  
Liabilities Assumed:          
Deposits       1,000  
Borrowings       1,000  
Other liabilities       1,000  
Total liabilities       $ 3,000  
Purchase Price:          
Nicolet common stock issued (in shares) 2,337,230        
Value of Nicolet common stock consideration $ 180,000        
Cash consideration paid 49,000        
Total purchase price 229,000        
Write-off of prior investment (2,000)        
Goodwill $ 84,000        
v3.22.4
ACQUISITIONS - Carrying Value of PCD Loans Acquired (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Aug. 26, 2022
Dec. 03, 2021
Sep. 03, 2021
Charter Bankshares, Inc.        
Business Acquisition [Line Items]        
Allowance for credit losses on PCD loans at acquisition $ 2,000 $ 9,000    
Par value of PCD acquired loans at acquisition 827,000 848,000    
Charter Bankshares, Inc. | PCD loans aquired        
Business Acquisition [Line Items]        
Purchase price of PCD loans at acquisition   24,031    
Allowance for credit losses on PCD loans at acquisition   1,709    
Par value of PCD acquired loans at acquisition   $ 25,740    
County Bancorp, Inc.        
Business Acquisition [Line Items]        
Allowance for credit losses on PCD loans at acquisition 3,000   $ 11,000  
Par value of PCD acquired loans at acquisition 1,014,000   1,015,000  
County Bancorp, Inc. | PCD loans aquired        
Business Acquisition [Line Items]        
Purchase price of PCD loans at acquisition     64,720  
Allowance for credit losses on PCD loans at acquisition     3,490  
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     $ 6,000
Par value of PCD acquired loans at acquisition $ 940,000     930,000
Mackinac Financial Corporation | PCD loans aquired        
Business Acquisition [Line Items]        
Purchase price of PCD loans at acquisition       10,605
Allowance for credit losses on PCD loans at acquisition       1,896
Par value of PCD acquired loans at acquisition       $ 12,501
v3.22.4
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
Business Acquisition [Line Items]    
Total revenue, net of interest expense $ 320,307 $ 308,325
Net income $ 87,860 $ 77,641
Diluted earnings per common share (in dollars per share) $ 5.91 $ 5.21
v3.22.4
SECURITIES AND OTHER INVESTMENTS - Narrative (Details) - USD ($)
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]      
Securities pledged as collateral $ 883,000,000 $ 277,000,000  
Accrued interest on securities 6,000,000 5,000,000  
Allowance for credit losses on securities AFS 0 0 $ 0
Mortgage-backed securities      
Debt Securities, Available-for-sale [Line Items]      
Allowance for credit losses on securities HTM $ 0 $ 0  
v3.22.4
SECURITIES AND OTHER INVESTMENTS - Amortized Costs and Fair Values of Securities AFS and HTM (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 996,344 $ 917,412
Gross Unrealized Gains 136 9,777
Gross Unrealized Losses 78,862 5,528
Securities available for sale (“AFS”), at fair value 917,618 921,661
Schedule of Held-to-maturity Securities [Line Items]    
Amortized Cost 679,128 651,803
Gross Unrealized Gains 46 99
Gross Unrealized Losses 55,822 3,508
Fair Value 623,352 648,394
U.S. Treasury securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 192,116 191,507
Gross Unrealized Gains 0 0
Gross Unrealized Losses 8,286 1,235
Securities available for sale (“AFS”), at fair value 183,830 190,272
Schedule of Held-to-maturity Securities [Line Items]    
Amortized Cost 497,648 496,939
Gross Unrealized Gains 0 0
Gross Unrealized Losses 35,722 2,738
Fair Value 461,926 494,201
U.S. government agency securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 2,133 999
Gross Unrealized Gains 0 6
Gross Unrealized Losses 33 0
Securities available for sale (“AFS”), at fair value 2,100 1,005
Schedule of Held-to-maturity Securities [Line Items]    
Amortized Cost 8,744 11,871
Gross Unrealized Gains 46 0
Gross Unrealized Losses 0 2
Fair Value 8,790 11,869
State, county and municipals    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 433,733 311,717
Gross Unrealized Gains 123 3,222
Gross Unrealized Losses 35,668 2,202
Securities available for sale (“AFS”), at fair value 398,188 312,737
Schedule of Held-to-maturity Securities [Line Items]    
Amortized Cost 34,874 42,876
Gross Unrealized Gains 0 10
Gross Unrealized Losses 3,349 173
Fair Value 31,525 42,713
Mortgage-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 227,650 270,017
Gross Unrealized Gains 10 3,090
Gross Unrealized Losses 26,728 1,845
Securities available for sale (“AFS”), at fair value 200,932 271,262
Schedule of Held-to-maturity Securities [Line Items]    
Amortized Cost 137,862 100,117
Gross Unrealized Gains 0 89
Gross Unrealized Losses 16,751 595
Fair Value 121,111 99,611
Corporate debt securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 140,712 143,172
Gross Unrealized Gains 3 3,459
Gross Unrealized Losses 8,147 246
Securities available for sale (“AFS”), at fair value $ 132,568 $ 146,385
v3.22.4
SECURITIES AND OTHER INVESTMENTS - Gross Unrealized Losses and the Related fair Value of Securities Available for Sale (Details)
$ in Thousands
Dec. 31, 2022
USD ($)
security
Dec. 31, 2021
USD ($)
security
Debt Securities, Available-for-sale [Line Items]    
Less than 12 months, fair value $ 497,072 $ 455,210
Less than 12 months, unrealized losses 35,593 5,216
12 months or more, fair value 378,520 7,845
12 months or more, unrealized losses 43,269 312
Total, fair value 875,592 463,055
Total, unrealized losses $ 78,862 $ 5,528
Total, number of securities | security 1,296 315
Less than 12 months, fair value $ 85,699 $ 606,169
Less than 12 months, unrealized losses 9,623 3,508
12 months or more, fair value 526,583 0
12 months or more, unrealized losses 46,199 0
Total, fair value 612,282 606,169
Total, unrealized losses $ 55,822 $ 3,508
Total, number of securities | security 170 127
Schedule of Held-to-maturity Securities [Line Items]    
Less than 12 months, fair value $ 85,699 $ 606,169
Less than 12 months, unrealized losses 9,623 3,508
12 months or more, fair value 526,583 0
12 months or more, unrealized losses 46,199 0
Total, fair value 55,822 3,508
Total, unrealized losses $ 612,282 $ 606,169
Total, number of securities | security 170 127
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months $ 497,072 $ 455,210
Less than 12 months, unrealized losses 35,593 5,216
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer 378,520 7,845
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss 43,269 312
Debt Securities, Available-for-sale, Unrealized Loss Position 875,592 463,055
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss $ 78,862 $ 5,528
Total, number of securities | security 1,296 315
U.S. Treasury securities    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 months, fair value $ 448 $ 190,272
Less than 12 months, unrealized losses 14 1,235
12 months or more, fair value 183,382 0
12 months or more, unrealized losses 8,272 0
Total, fair value 183,830 190,272
Total, unrealized losses $ 8,286 $ 1,235
Total, number of securities | security 9 8
Less than 12 months, fair value $ 0 $ 494,201
Less than 12 months, unrealized losses 0 2,738
12 months or more, fair value 461,926 0
12 months or more, unrealized losses 35,722 0
Total, fair value 461,926 494,201
Total, unrealized losses $ 35,722 $ 2,738
Total, number of securities | security 6 6
Schedule of Held-to-maturity Securities [Line Items]    
Less than 12 months, fair value $ 0 $ 494,201
Less than 12 months, unrealized losses 0 2,738
12 months or more, fair value 461,926 0
12 months or more, unrealized losses 35,722 0
Total, fair value 35,722 2,738
Total, unrealized losses $ 461,926 $ 494,201
Total, number of securities | security 6 6
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months $ 448 $ 190,272
Less than 12 months, unrealized losses 14 1,235
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer 183,382 0
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss 8,272 0
Debt Securities, Available-for-sale, Unrealized Loss Position 183,830 190,272
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss $ 8,286 $ 1,235
Total, number of securities | security 9 8
U.S. government agency securities    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 months, fair value $ 2,083 $ 160
Less than 12 months, unrealized losses 32 0
12 months or more, fair value 17 0
12 months or more, unrealized losses 1 0
Total, fair value 2,100 160
Total, unrealized losses $ 33 $ 0
Total, number of securities | security 9 3
Less than 12 months, fair value   $ 11,737
Less than 12 months, unrealized losses   2
12 months or more, fair value   0
12 months or more, unrealized losses   0
Total, fair value   11,737
Total, unrealized losses   $ 2
Total, number of securities | security   3
Schedule of Held-to-maturity Securities [Line Items]    
Less than 12 months, fair value   $ 11,737
Less than 12 months, unrealized losses   2
12 months or more, fair value   0
12 months or more, unrealized losses   0
Total, fair value   2
Total, unrealized losses   $ 11,737
Total, number of securities | security   3
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months $ 2,083 $ 160
Less than 12 months, unrealized losses 32 0
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer 17 0
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss 1 0
Debt Securities, Available-for-sale, Unrealized Loss Position 2,100 160
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss $ 33 $ 0
Total, number of securities | security 9 3
State, county and municipals    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 months, fair value $ 277,546 $ 103,950
Less than 12 months, unrealized losses 18,041 2,119
12 months or more, fair value 86,569 1,777
12 months or more, unrealized losses 17,627 83
Total, fair value 364,115 105,727
Total, unrealized losses $ 35,668 $ 2,202
Total, number of securities | security 812 132
Less than 12 months, fair value $ 17,591 $ 30,898
Less than 12 months, unrealized losses 1,594 173
12 months or more, fair value 11,654 0
12 months or more, unrealized losses 1,755 0
Total, fair value 29,245 30,898
Total, unrealized losses $ 3,349 $ 173
Total, number of securities | security 58 46
Schedule of Held-to-maturity Securities [Line Items]    
Less than 12 months, fair value $ 17,591 $ 30,898
Less than 12 months, unrealized losses 1,594 173
12 months or more, fair value 11,654 0
12 months or more, unrealized losses 1,755 0
Total, fair value 3,349 173
Total, unrealized losses $ 29,245 $ 30,898
Total, number of securities | security 58 46
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months $ 277,546 $ 103,950
Less than 12 months, unrealized losses 18,041 2,119
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer 86,569 1,777
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss 17,627 83
Debt Securities, Available-for-sale, Unrealized Loss Position 364,115 105,727
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss $ 35,668 $ 2,202
Total, number of securities | security 812 132
Mortgage-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 months, fair value $ 102,108 $ 137,561
Less than 12 months, unrealized losses 11,320 1,616
12 months or more, fair value 95,614 6,068
12 months or more, unrealized losses 15,408 229
Total, fair value 197,722 143,629
Total, unrealized losses $ 26,728 $ 1,845
Total, number of securities | security 376 159
Less than 12 months, fair value $ 68,108 $ 69,333
Less than 12 months, unrealized losses 8,029 595
12 months or more, fair value 53,003 0
12 months or more, unrealized losses 8,722 0
Total, fair value 121,111 69,333
Total, unrealized losses $ 16,751 $ 595
Total, number of securities | security 106 72
Schedule of Held-to-maturity Securities [Line Items]    
Less than 12 months, fair value $ 68,108 $ 69,333
Less than 12 months, unrealized losses 8,029 595
12 months or more, fair value 53,003 0
12 months or more, unrealized losses 8,722 0
Total, fair value 16,751 595
Total, unrealized losses $ 121,111 $ 69,333
Total, number of securities | security 106 72
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months $ 102,108 $ 137,561
Less than 12 months, unrealized losses 11,320 1,616
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer 95,614 6,068
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss 15,408 229
Debt Securities, Available-for-sale, Unrealized Loss Position 197,722 143,629
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss $ 26,728 $ 1,845
Total, number of securities | security 376 159
Corporate debt securities    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 months, fair value $ 114,887 $ 23,267
Less than 12 months, unrealized losses 6,186 246
12 months or more, fair value 12,938 0
12 months or more, unrealized losses 1,961 0
Total, fair value 127,825 23,267
Total, unrealized losses $ 8,147 $ 246
Total, number of securities | security 90 13
Schedule of Held-to-maturity Securities [Line Items]    
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months $ 114,887 $ 23,267
Less than 12 months, unrealized losses 6,186 246
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer 12,938 0
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss 1,961 0
Debt Securities, Available-for-sale, Unrealized Loss Position 127,825 23,267
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss $ 8,147 $ 246
Total, number of securities | security 90 13
v3.22.4
SECURITIES AND OTHER INVESTMENTS - Amortized Cost and Fair Values of Securities Available for Sale at by Contractual Maturity (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Amortized Cost    
Due in less than one year $ 222,169  
Due in one year through five years 172,291  
Due after five years through ten years 229,760  
Due after ten years 144,474  
Allocated and single maturity date 768,694  
Amortized Cost 996,344 $ 917,412
Fair Value    
Due in less than one year 218,033  
Due in one year through five years 163,466  
Due after five years through ten years 203,039  
Due after ten years 132,148  
Allocated and single maturity date 716,686  
Fair Value 917,618 921,661
Amortized Cost    
Due in less than one year 1,774  
Due in one year through five years 513,181  
Due after five years through ten years 22,600  
Due after ten years 3,711  
Allocated and single maturity date 541,266  
Total 679,128  
Fair Value    
Due in less than one year 1,748  
Due in one year through five years 476,365  
Due after five years through ten years 20,485  
Due after ten years 3,643  
Allocated and single maturity date 502,241  
Fair Value 623,352 648,394
Mortgage-backed securities    
Amortized Cost    
Mortgage-backed securities 227,650  
Amortized Cost 227,650 270,017
Fair Value    
Mortgage-backed securities 200,932  
Fair Value 200,932 271,262
Amortized Cost    
Mortgage-backed securities 137,862  
Fair Value    
Mortgage-backed securities 121,111  
Fair Value $ 121,111 $ 99,611
v3.22.4
SECURITIES AND OTHER INVESTMENTS - Proceeds from Sales of Securities AFS (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]      
Gross gains $ 28 $ 5 $ 395
Gross losses (272) (288) 0
Gains (losses) on sales of securities AFS, net (244) (283) 395
Proceeds from sales of securities AFS 28,438 42,973 19,045
Debt Securities, Available-for-sale [Line Items]      
Proceeds from sales of securities AFS 28,438 $ 42,973 $ 19,045
Charter Bankshares, Inc.      
Investments, Debt and Equity Securities [Abstract]      
Proceeds from sales of securities AFS 21,000    
Debt Securities, Available-for-sale [Line Items]      
Proceeds from sales of securities AFS $ 21,000    
v3.22.4
SECURITIES AND OTHER INVESTMENTS - Other Investments (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]    
Federal Reserve Bank stock $ 32,219 $ 20,973
FHLB stock 18,625 10,545
Equity securities with readily determinable fair values 4,376 5,660
Other investments 10,066 6,830
Total other investments $ 65,286 $ 44,008
v3.22.4
LOANS, ALLOWANCE FOR CREDIT LOSSES - LOANS, AND CREDIT QUALITY - Summary of Loan Composition (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans $ 6,180,499 $ 4,621,836    
Less ACL-Loans 61,829 49,672 $ 32,173 $ 13,972
Loans, net $ 6,118,670 $ 4,572,164    
ACL-Loans to loans (in percent) 1.00% 1.07%    
% of Total 100.00% 100.00%    
Retail & other        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans $ 55,266 $ 50,807    
Less ACL-Loans $ 1,029 $ 932 557  
% of Total 1.00% 1.00%    
Retail-based loans        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans $ 1,363,925 $ 966,567    
% of Total 22.00% 20.00%    
Commercial        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans $ 3,348,025 $ 2,624,173    
% of Total 54.00% 57.00%    
Commercial | Commercial & industrial        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans $ 1,304,819 $ 1,042,256    
Less ACL-Loans $ 16,350 $ 12,613 11,644  
% of Total 21.00% 23.00%    
Commercial | Owner-occupied commercial real estate (“CRE”)        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans $ 954,599 $ 787,189    
Less ACL-Loans $ 9,138 $ 7,222 5,872  
% of Total 15.00% 17.00%    
Commercial | Agricultural        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans $ 1,088,607 $ 794,728    
Less ACL-Loans $ 9,762 $ 9,547 1,395  
% of Total 18.00% 17.00%    
Commercial real estate        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans $ 1,468,549 $ 1,031,096    
% of Total 24.00% 23.00%    
Commercial real estate | CRE investment        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans $ 1,149,949 $ 818,061    
Less ACL-Loans $ 12,744 $ 8,462 5,441  
% of Total 19.00% 18.00%    
Commercial real estate | Construction & land development        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans $ 318,600 $ 213,035    
Less ACL-Loans $ 2,572 $ 1,812 984  
% of Total 5.00% 5.00%    
Commercial-based loans        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans $ 4,816,574 $ 3,655,269    
% of Total 78.00% 80.00%    
Residential        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans $ 1,308,659 $ 915,760    
% of Total 21.00% 19.00%    
Residential | Residential first mortgage        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans $ 1,016,935 $ 713,983    
Less ACL-Loans $ 6,976 $ 6,844 4,773  
% of Total 16.00% 15.00%    
Residential | Residential junior mortgage        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans $ 177,332 $ 131,424    
Less ACL-Loans $ 1,846 $ 1,340 1,086  
% of Total 3.00% 3.00%    
Residential | Residential construction        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans $ 114,392 $ 70,353    
Less ACL-Loans $ 1,412 $ 900 $ 421  
% of Total 2.00% 1.00%    
v3.22.4
LOANS, ALLOWANCE FOR CREDIT LOSSES - LOANS, AND CREDIT QUALITY- Narrative (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
loan
Dec. 31, 2021
USD ($)
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans $ 6,180,499 $ 4,621,836
Accrued interest on loans $ 15,000 $ 11,000
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] Interest Receivable and Other Assets Interest Receivable and Other Assets
ACL-Unfunded Commitments $ 3,000 $ 2,400
Number of loans classified as troubled debt with subsequent default | loan 0  
Commercial    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans $ 3,348,025 2,624,173
Commercial | PPP loans | Grades 1-4    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans $ 200 $ 25,000
v3.22.4
LOANS, ALLOWANCE FOR CREDIT LOSSES - LOANS, AND CREDIT QUALITY - Summary of Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Financing Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning balance $ 49,672 $ 32,173 $ 13,972
ACL on PCD loans acquired 1,937 5,159 0
Provision for credit losses 10,950 12,500 10,300
Charge-offs (1,033) (513) (1,689)
Recoveries 303 353 305
Net (charge-offs) recoveries (730) (160) (1,384)
Ending balance 61,829 49,672 32,173
Adoption of CECL      
Financing Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning balance 0 0 8,488
Ending balance   0 0
Initial PCD ACL      
Financing Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning balance 0 0 797
Ending balance   0 0
Total impact for adoption of CECL      
Financing Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning balance $ 0 0 9,285
Ending balance   $ 0 $ 0
v3.22.4
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, 2022
Dec. 31, 2021
Dec. 31, 2020
Financing Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning balance $ 49,672 $ 32,173 $ 13,972
ACL on PCD loans acquired 1,937 5,159 0
Provision for credit losses 10,950 12,500 10,300
Charge-offs (1,033) (513) (1,689)
Recoveries 303 353 305
Net (charge-offs) recoveries (730) (160) (1,384)
Ending balance $ 61,829 $ 49,672 32,173
As % of ACL-Loans 100.00% 100.00%  
Retail & other      
Financing Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning balance $ 932 $ 557  
ACL on PCD loans acquired 0 3  
Provision for credit losses 299 443  
Charge-offs (223) (106)  
Recoveries 21 35  
Net (charge-offs) recoveries (202) (71)  
Ending balance $ 1,029 $ 932 557
As % of ACL-Loans 2.00% 2.00%  
Commercial | Commercial & industrial      
Financing Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning balance $ 12,613 $ 11,644  
ACL on PCD loans acquired 1,408 723  
Provision for credit losses 2,415 196  
Charge-offs (190) (242)  
Recoveries 104 292  
Net (charge-offs) recoveries (86) 50  
Ending balance $ 16,350 $ 12,613 11,644
As % of ACL-Loans 26.00% 25.00%  
Commercial | Owner-occupied commercial real estate (“CRE”)      
Financing Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning balance $ 7,222 $ 5,872  
ACL on PCD loans acquired 384 1,045  
Provision for credit losses 2,087 305  
Charge-offs (555) 0  
Recoveries 0 0  
Net (charge-offs) recoveries (555) 0  
Ending balance $ 9,138 $ 7,222 5,872
As % of ACL-Loans 15.00% 14.00%  
Commercial | Agricultural      
Financing Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning balance $ 9,547 $ 1,395  
ACL on PCD loans acquired 0 2,585  
Provision for credit losses 215 5,615  
Charge-offs 0 (48)  
Recoveries 0 0  
Net (charge-offs) recoveries 0 (48)  
Ending balance $ 9,762 $ 9,547 1,395
As % of ACL-Loans 16.00% 19.00%  
Commercial real estate | CRE investment      
Financing Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning balance $ 8,462 $ 5,441  
ACL on PCD loans acquired 38 415  
Provision for credit losses 4,075 2,608  
Charge-offs 0 (4)  
Recoveries 169 2  
Net (charge-offs) recoveries 169 (2)  
Ending balance $ 12,744 $ 8,462 5,441
As % of ACL-Loans 21.00% 17.00%  
Commercial real estate | Construction & land development      
Financing Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning balance $ 1,812 $ 984  
ACL on PCD loans acquired 2 103  
Provision for credit losses 758 725  
Charge-offs 0 0  
Recoveries 0 0  
Net (charge-offs) recoveries 0 0  
Ending balance $ 2,572 $ 1,812 984
As % of ACL-Loans 4.00% 4.00%  
Residential | Residential first mortgage      
Financing Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning balance $ 6,844 $ 4,773  
ACL on PCD loans acquired 93 272  
Provision for credit losses 96 1,892  
Charge-offs (65) (113)  
Recoveries 8 20  
Net (charge-offs) recoveries (57) (93)  
Ending balance $ 6,976 $ 6,844 4,773
As % of ACL-Loans 11.00% 14.00%  
Residential | Residential junior mortgage      
Financing Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning balance $ 1,340 $ 1,086  
ACL on PCD loans acquired 12 13  
Provision for credit losses 493 237  
Charge-offs 0 0  
Recoveries 1 4  
Net (charge-offs) recoveries 1 4  
Ending balance $ 1,846 $ 1,340 1,086
As % of ACL-Loans 3.00% 3.00%  
Residential | Residential construction      
Financing Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning balance $ 900 $ 421  
ACL on PCD loans acquired 0 0  
Provision for credit losses 512 479  
Charge-offs 0 0  
Recoveries 0 0  
Net (charge-offs) recoveries 0 0  
Ending balance $ 1,412 $ 900 $ 421
As % of ACL-Loans 2.00% 2.00%  
v3.22.4
LOANS, ALLOWANCE FOR CREDIT LOSSES - LOANS, AND CREDIT QUALITY - Provision for Credit Losses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Receivables [Abstract]      
Loans $ 10,950 $ 12,500 $ 10,300
Unfunded Commitments 550 2,400 0
Investment securities 0 0 0
Total $ 11,500 $ 14,900 $ 10,300
v3.22.4
LOANS, ALLOWANCE FOR CREDIT LOSSES - LOANS, AND CREDIT QUALITY - Collateral Dependent Loans by Portfolio Segment (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans $ 32,072 $ 38,499
Without an Allowance 22,724 31,279
With an Allowance 9,348 7,220
Allowance Allocation 1,121 2,269
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 | Commercial & industrial    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans 3,475 2,296
Without an Allowance 1,927 1,842
With an Allowance 1,548 454
Allowance Allocation 595 258
Commercial | Owner-occupied commercial real estate (“CRE”)    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans 4,907 3,537
Without an Allowance 4,699 1,315
With an Allowance 208 2,222
Allowance Allocation 53 552
Commercial | Agricultural    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans 20,216 28,155
Without an Allowance 14,358 25,310
With an Allowance 5,858 2,845
Allowance Allocation 261 841
Commercial real estate | CRE investment    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans 2,713 3,000
Without an Allowance 979 1,684
With an Allowance 1,734 1,316
Allowance Allocation 212 407
Commercial real estate | Construction & land development    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans 670 1,038
Without an Allowance 670 655
With an Allowance 0 383
Allowance Allocation 0 211
Residential | Residential first mortgage    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans 91 473
Without an Allowance 91 473
With an Allowance 0 0
Allowance Allocation 0 0
Residential | Residential 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 22,139 27,685
Real Estate | Retail & other    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans 0 0
Real Estate | Commercial | Commercial & industrial    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans 0 0
Real Estate | Commercial | Owner-occupied commercial real estate (“CRE”)    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans 4,907 3,537
Real Estate | Commercial | Agricultural    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans 13,758 19,637
Real Estate | Commercial real estate | CRE investment    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans 2,713 3,000
Real Estate | Commercial real estate | Construction & land development    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans 670 1,038
Real Estate | Residential | Residential first mortgage    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans 91 473
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 9,933 10,814
Other Business Assets | Retail & other    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans 0 0
Other Business Assets | Commercial | Commercial & industrial    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans 3,475 2,296
Other Business Assets | Commercial | Owner-occupied commercial real estate (“CRE”)    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans 0 0
Other Business Assets | Commercial | Agricultural    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans 6,458 8,518
Other Business Assets | Commercial real estate | CRE investment    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans 0 0
Other Business Assets | Commercial real estate | 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
v3.22.4
LOANS, ALLOWANCE FOR CREDIT LOSSES - LOANS, AND CREDIT QUALITY - Summary of Loans by Past due Status (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans $ 6,180,499 $ 4,621,836
Percent of total loans 100.00% 100.00%
30-89 Days Past Due (accruing)    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans $ 5,188 $ 3,292
Percent past due 0.10% 0.10%
90 Days & Over or nonaccrual    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans $ 38,080 $ 44,154
Percent past due 0.60% 0.90%
Current    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans $ 6,137,231 $ 4,574,390
Percent of current loans 99.30% 99.00%
Retail & other    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans $ 55,266 $ 50,807
Retail & other | 30-89 Days Past Due (accruing)    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 261 115
Retail & other | 90 Days & Over or nonaccrual    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 82 94
Retail & other | Current    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 54,923 50,598
Commercial    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 3,348,025 2,624,173
Commercial | Commercial & industrial    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 1,304,819 1,042,256
Commercial | Commercial & industrial | 30-89 Days Past Due (accruing)    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 210 94
Commercial | Commercial & industrial | 90 Days & Over or nonaccrual    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 3,328 1,908
Commercial | Commercial & industrial | Current    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 1,301,281 1,040,254
Commercial | Owner-occupied commercial real estate (“CRE”)    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 954,599 787,189
Commercial | Owner-occupied commercial real estate (“CRE”) | 30-89 Days Past Due (accruing)    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 833 0
Commercial | Owner-occupied commercial real estate (“CRE”) | 90 Days & Over or nonaccrual    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 5,647 4,220
Commercial | Owner-occupied commercial real estate (“CRE”) | Current    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 948,119 782,969
Commercial | Agricultural    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 1,088,607 794,728
Commercial | Agricultural | 30-89 Days Past Due (accruing)    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 20 108
Commercial | Agricultural | 90 Days & Over or nonaccrual    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 20,416 28,367
Commercial | Agricultural | Current    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 1,068,171 766,253
Commercial real estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 1,468,549 1,031,096
Commercial real estate | CRE investment    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 1,149,949 818,061
Commercial real estate | CRE investment | 30-89 Days Past Due (accruing)    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 0 114
Commercial real estate | CRE investment | 90 Days & Over or nonaccrual    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 3,832 4,119
Commercial real estate | CRE investment | Current    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 1,146,117 813,828
Commercial real estate | Construction & land development    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 318,600 213,035
Commercial real estate | Construction & land development | 30-89 Days Past Due (accruing)    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 0 0
Commercial real estate | Construction & land development | 90 Days & Over or nonaccrual    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 771 1,071
Commercial real estate | Construction & land development | Current    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 317,829 211,964
Residential    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 1,308,659 915,760
Residential | Residential first mortgage    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 1,016,935 713,983
Residential | Residential first mortgage | 30-89 Days Past Due (accruing)    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 3,628 2,592
Residential | Residential first mortgage | 90 Days & Over or nonaccrual    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 3,780 4,132
Residential | Residential first mortgage | Current    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 1,009,527 707,259
Residential | Residential junior mortgage    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 177,332 131,424
Residential | Residential junior mortgage | 30-89 Days Past Due (accruing)    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 236 23
Residential | Residential junior mortgage | 90 Days & Over or nonaccrual    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 224 243
Residential | Residential junior mortgage | Current    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 176,872 131,158
Residential | Residential construction    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 114,392 70,353
Residential | Residential construction | 30-89 Days Past Due (accruing)    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans 0 246
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 $ 114,392 $ 70,107
v3.22.4
LOANS, ALLOWANCE FOR CREDIT LOSSES - LOANS, AND CREDIT QUALITY - Nonaccrual Loans by Portfolio Segment (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Financing Receivable, Past Due [Line Items]    
Nonaccrual loans $ 38,080 $ 44,154
Percent of total loans 0.60% 0.90%
% to Total 100.00% 100.00%
Retail & other    
Financing Receivable, Past Due [Line Items]    
Nonaccrual loans $ 82 $ 94
% to Total 0.00% 0.00%
Commercial | Commercial & industrial    
Financing Receivable, Past Due [Line Items]    
Nonaccrual loans $ 3,328 $ 1,908
% to Total 9.00% 4.00%
Commercial | Owner-occupied commercial real estate (“CRE”)    
Financing Receivable, Past Due [Line Items]    
Nonaccrual loans $ 5,647 $ 4,220
% to Total 15.00% 10.00%
Commercial | Agricultural    
Financing Receivable, Past Due [Line Items]    
Nonaccrual loans $ 20,416 $ 28,367
% to Total 53.00% 64.00%
Commercial real estate | CRE investment    
Financing Receivable, Past Due [Line Items]    
Nonaccrual loans $ 3,832 $ 4,119
% to Total 10.00% 9.00%
Commercial real estate | Construction & land development    
Financing Receivable, Past Due [Line Items]    
Nonaccrual loans $ 771 $ 1,071
% to Total 2.00% 3.00%
Residential | Residential first mortgage    
Financing Receivable, Past Due [Line Items]    
Nonaccrual loans $ 3,780 $ 4,132
% to Total 10.00% 9.00%
Residential | Residential junior mortgage    
Financing Receivable, Past Due [Line Items]    
Nonaccrual loans $ 224 $ 243
% to Total 1.00% 1.00%
Residential | Residential construction    
Financing Receivable, Past Due [Line Items]    
Nonaccrual loans $ 0 $ 0
% to Total 0.00% 0.00%
v3.22.4
LOANS, ALLOWANCE FOR CREDIT LOSSES - LOANS, AND CREDIT QUALITY - Summary of Loans by Loan Risk Categories (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 $ 1,528,490 $ 1,211,408
2021/2020 1,271,582 733,060
2020/2019 689,302 592,366
2019/2018 437,225 306,359
2018/2017 322,275 283,629
Prior 1,061,537 771,550
Revolving 864,323 722,034
Revolving to Term 5,765 1,430
Loans 6,180,499 4,621,836
Retail & other    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 12,318 13,676
2021/2020 9,003 6,910
2020/2019 4,243 5,828
2019/2018 3,190 2,072
2018/2017 1,065 1,882
Prior 24,955 20,164
Revolving 492 275
Revolving to Term 0 0
Loans 55,266 50,807
Retail & other | Grades 1-4    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 12,318 13,676
2021/2020 8,957 6,886
2020/2019 4,221 5,826
2019/2018 3,188 2,053
2018/2017 1,035 1,882
Prior 24,950 20,102
Revolving 492 275
Revolving to Term 0 0
Loans 55,161 50,700
Retail & other | Grade 5    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 0 0
2021/2020 23 0
2020/2019 0 0
2019/2018 0 0
2018/2017 0 0
Prior 0 0
Revolving 0 0
Revolving to Term 0 0
Loans 23 0
Retail & other | Grade 6    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 0 0
2021/2020 0 0
2020/2019 0 0
2019/2018 0 0
2018/2017 0 0
Prior 0 0
Revolving 0 0
Revolving to Term 0 0
Loans 0 0
Retail & other | Grade 7    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 0 0
2021/2020 23 24
2020/2019 22 2
2019/2018 2 19
2018/2017 30 0
Prior 5 62
Revolving 0 0
Revolving to Term 0 0
Loans 82 107
Commercial    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans 3,348,025 2,624,173
Commercial | Commercial & industrial    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 329,347 284,652
2021/2020 234,543 148,530
2020/2019 116,025 104,779
2019/2018 73,915 76,311
2018/2017 55,352 56,460
Prior 94,874 74,178
Revolving 400,763 297,346
Revolving to Term 0 0
Loans 1,304,819 1,042,256
Commercial | Commercial & industrial | Grades 1-4    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 317,394 282,369
2021/2020 226,065 146,131
2020/2019 101,374 99,702
2019/2018 68,884 69,478
2018/2017 50,189 50,557
Prior 77,589 71,247
Revolving 360,978 288,115
Revolving to Term 0 0
Loans 1,202,473 1,007,599
Commercial | Commercial & industrial | Grade 5    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 9,938 1,685
2021/2020 5,902 1,905
2020/2019 10,811 4,369
2019/2018 1,530 5,809
2018/2017 3,986 4,860
Prior 4,562 2,097
Revolving 20,617 8,408
Revolving to Term 0 0
Loans 57,346 29,133
Commercial | Commercial & industrial | Grade 6    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 1,459 598
2021/2020 2,283 54
2020/2019 629 16
2019/2018 511 687
2018/2017 402 67
Prior 11,653 91
Revolving 14,047 391
Revolving to Term 0 0
Loans 30,984 1,904
Commercial | Commercial & industrial | Grade 7    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 556 0
2021/2020 293 440
2020/2019 3,211 692
2019/2018 2,990 337
2018/2017 775 976
Prior 1,070 743
Revolving 5,121 432
Revolving to Term 0 0
Loans 14,016 3,620
Commercial | Owner-occupied commercial real estate (“CRE”)    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 156,859 162,331
2021/2020 194,211 100,443
2020/2019 116,550 115,311
2019/2018 105,746 94,671
2018/2017 96,270 81,644
Prior 277,881 224,198
Revolving 7,082 8,591
Revolving to Term 0 0
Loans 954,599 787,189
Commercial | Owner-occupied commercial real estate (“CRE”) | Grades 1-4    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 151,391 154,578
2021/2020 190,313 94,300
2020/2019 105,156 105,226
2019/2018 100,606 92,128
2018/2017 91,479 75,583
Prior 252,574 202,816
Revolving 6,734 6,945
Revolving to Term 0 0
Loans 898,253 731,576
Commercial | Owner-occupied commercial real estate (“CRE”) | Grade 5    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 5,241 7,753
2021/2020 3,192 3,019
2020/2019 4,287 6,529
2019/2018 2,163 2,543
2018/2017 4,791 2,515
Prior 14,632 13,905
Revolving 348 656
Revolving to Term 0 0
Loans 34,654 36,920
Commercial | Owner-occupied commercial real estate (“CRE”) | Grade 6    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 0 0
2021/2020 0 0
2020/2019 763 1,642
2019/2018 2,361 0
2018/2017 0 20
Prior 877 805
Revolving 0 0
Revolving to Term 0 0
Loans 4,001 2,467
Commercial | Owner-occupied commercial real estate (“CRE”) | Grade 7    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 227 0
2021/2020 706 3,124
2020/2019 6,344 1,914
2019/2018 616 0
2018/2017 0 3,526
Prior 9,798 6,672
Revolving 0 990
Revolving to Term 0 0
Loans 17,691 16,226
Commercial | Agricultural    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 295,783 146,522
2021/2020 167,539 96,036
2020/2019 88,855 34,333
2019/2018 29,465 28,003
2018/2017 24,815 47,511
Prior 199,982 167,198
Revolving 282,168 275,125
Revolving to Term 0 0
Loans 1,088,607 794,728
Commercial | Agricultural | Grades 1-4    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 275,208 128,404
2021/2020 145,272 87,844
2020/2019 85,413 28,416
2019/2018 25,463 22,887
2018/2017 19,687 36,298
Prior 130,849 86,104
Revolving 249,033 235,743
Revolving to Term 0 0
Loans 930,925 625,696
Commercial | Agricultural | Grade 5    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 13,295 14,796
2021/2020 18,178 4,183
2020/2019 2,694 2,391
2019/2018 1,992 915
2018/2017 517 3,912
Prior 43,927 48,373
Revolving 21,199 26,778
Revolving to Term 0 0
Loans 101,802 101,348
Commercial | Agricultural | Grade 6    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 115 38
2021/2020 1,457 38
2020/2019 28 36
2019/2018 33 0
2018/2017 0 86
Prior 5,258 1,049
Revolving 429 85
Revolving to Term 0 0
Loans 7,320 1,332
Commercial | Agricultural | Grade 7    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 7,165 3,284
2021/2020 2,632 3,971
2020/2019 720 3,490
2019/2018 1,977 4,201
2018/2017 4,611 7,215
Prior 19,948 31,672
Revolving 11,507 12,519
Revolving to Term 0 0
Loans 48,560 66,352
Commercial | PPP loans | Grades 1-4    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans 200 25,000
Commercial real estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans 1,468,549 1,031,096
Commercial real estate | CRE investment    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 206,497 203,355
2021/2020 230,901 142,128
2020/2019 196,226 143,259
2019/2018 140,036 60,234
2018/2017 85,376 73,104
Prior 279,115 184,461
Revolving 11,798 11,520
Revolving to Term 0 0
Loans 1,149,949 818,061
Commercial real estate | CRE investment | Grades 1-4    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 205,930 192,274
2021/2020 229,252 139,127
2020/2019 192,527 136,306
2019/2018 134,301 56,148
2018/2017 79,649 65,026
Prior 248,595 162,991
Revolving 11,383 11,289
Revolving to Term 0 0
Loans 1,101,637 763,161
Commercial real estate | CRE investment | Grade 5    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 567 11,081
2021/2020 1,649 3,001
2020/2019 3,578 6,497
2019/2018 4,266 3,945
2018/2017 3,086 6,726
Prior 24,897 17,527
Revolving 0 0
Revolving to Term 0 0
Loans 38,043 48,777
Commercial real estate | CRE investment | Grade 6    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 0 0
2021/2020 0 0
2020/2019 0 0
2019/2018 1,170 0
2018/2017 2,396 0
Prior 2,483 0
Revolving 206 0
Revolving to Term 0 0
Loans 6,255 0
Commercial real estate | CRE investment | Grade 7    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 0 0
2021/2020 0 0
2020/2019 121 456
2019/2018 299 141
2018/2017 245 1,352
Prior 3,140 3,943
Revolving 209 231
Revolving to Term 0 0
Loans 4,014 6,123
Commercial real estate | Construction & land development    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 104,874 82,531
2021/2020 140,727 72,415
2020/2019 12,188 13,068
2019/2018 9,761 20,430
2018/2017 23,811 1,201
Prior 14,004 12,447
Revolving 13,235 10,943
Revolving to Term 0 0
Loans 318,600 213,035
Commercial real estate | Construction & land development | Grades 1-4    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 104,804 81,891
2021/2020 140,727 72,415
2020/2019 12,188 12,547
2019/2018 9,747 19,511
2018/2017 23,811 1,184
Prior 13,138 11,274
Revolving 13,235 10,943
Revolving to Term 0 0
Loans 317,650 209,765
Commercial real estate | Construction & land development | Grade 5    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 37 640
2021/2020 0 0
2020/2019 0 521
2019/2018 14 919
2018/2017 0 0
Prior 95 119
Revolving 0 0
Revolving to Term 0 0
Loans 146 2,199
Commercial real estate | Construction & land development | Grade 6    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 0 0
2021/2020 0 0
2020/2019 0 0
2019/2018 0 0
2018/2017 0 0
Prior 0 0
Revolving 0 0
Revolving to Term 0 0
Loans 0 0
Commercial real estate | Construction & land development | Grade 7    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 33 0
2021/2020 0 0
2020/2019 0 0
2019/2018 0 0
2018/2017 0 17
Prior 771 1,054
Revolving 0 0
Revolving to Term 0 0
Loans 804 1,071
Residential    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans 1,308,659 915,760
Residential | Residential first mortgage    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 320,276 256,795
2021/2020 273,098 153,461
2020/2019 149,042 172,359
2019/2018 71,838 22,793
2018/2017 33,677 20,220
Prior 166,921 86,511
Revolving 2,080 1,840
Revolving to Term 3 4
Loans 1,016,935 713,983
Residential | Residential first mortgage | Grades 1-4    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 318,628 256,082
2021/2020 272,011 152,932
2020/2019 147,857 168,705
2019/2018 68,975 22,568
2018/2017 31,208 20,147
Prior 162,153 82,479
Revolving 2,080 1,840
Revolving to Term 3 4
Loans 1,002,915 704,757
Residential | Residential first mortgage | Grade 5    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 1,494 713
2021/2020 758 529
2020/2019 997 3,094
2019/2018 1,803 0
2018/2017 2,272 0
Prior 465 1,508
Revolving 0 0
Revolving to Term 0 0
Loans 7,789 5,844
Residential | Residential first mortgage | Grade 6    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 0 0
2021/2020 0 0
2020/2019 0 0
2019/2018 711 0
2018/2017 0 0
Prior 0 0
Revolving 0 0
Revolving to Term 0 0
Loans 711 0
Residential | Residential first mortgage | Grade 7    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 154 0
2021/2020 329 0
2020/2019 188 560
2019/2018 349 225
2018/2017 197 73
Prior 4,303 2,524
Revolving 0 0
Revolving to Term 0 0
Loans 5,520 3,382
Residential | Residential junior mortgage    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 10,119 3,194
2021/2020 4,786 3,139
2020/2019 5,207 3,222
2019/2018 3,151 1,501
2018/2017 1,573 535
Prior 3,576 2,013
Revolving 143,158 116,394
Revolving to Term 5,762 1,426
Loans 177,332 131,424
Residential | Residential junior mortgage | Grades 1-4    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 10,119 3,194
2021/2020 4,580 3,139
2020/2019 5,207 3,021
2019/2018 3,151 1,501
2018/2017 1,573 512
Prior 3,409 1,969
Revolving 142,784 115,817
Revolving to Term 5,762 1,426
Loans 176,585 130,579
Residential | Residential junior mortgage | Grade 5    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 0 0
2021/2020 0 0
2020/2019 0 29
2019/2018 0 0
2018/2017 0 0
Prior 143 0
Revolving 165 439
Revolving to Term 0 0
Loans 308 468
Residential | Residential junior mortgage | Grade 6    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 0 0
2021/2020 0 0
2020/2019 0 0
2019/2018 0 0
2018/2017 0 0
Prior 0 0
Revolving 0 0
Revolving to Term 0 0
Loans 0 0
Residential | Residential junior mortgage | Grade 7    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 0 0
2021/2020 206 0
2020/2019 0 172
2019/2018 0 0
2018/2017 0 23
Prior 24 44
Revolving 209 138
Revolving to Term 0 0
Loans 439 377
Residential | Residential construction    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 92,417 58,352
2021/2020 16,774 9,998
2020/2019 966 207
2019/2018 123 344
2018/2017 336 1,072
Prior 229 380
Revolving 3,547 0
Revolving to Term 0 0
Loans 114,392 70,353
Residential | Residential construction | Grades 1-4    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 92,417 58,352
2021/2020 16,774 9,998
2020/2019 966 155
2019/2018 123 344
2018/2017 336 1,072
Prior 229 380
Revolving 3,547 0
Revolving to Term 0 0
Loans 114,392 70,301
Residential | Residential construction | Grade 5    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 0 0
2021/2020 0 0
2020/2019 0 52
2019/2018 0 0
2018/2017 0 0
Prior 0 0
Revolving 0 0
Revolving to Term 0 0
Loans 0 52
Residential | Residential construction | Grade 6    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 0 0
2021/2020 0 0
2020/2019 0 0
2019/2018 0 0
2018/2017 0 0
Prior 0 0
Revolving 0 0
Revolving to Term 0 0
Loans 0 0
Residential | Residential construction | Grade 7    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022/2021 0 0
2021/2020 0 0
2020/2019 0 0
2019/2018 0 0
2018/2017 0 0
Prior 0 0
Revolving 0 0
Revolving to Term 0 0
Loans $ 0 $ 0
v3.22.4
LOANS, ALLOWANCE FOR CREDIT LOSSES - LOANS, AND CREDIT QUALITY - Trouble Debt Restructuring (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
loan
Dec. 31, 2021
USD ($)
loan
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Troubled debt restructurings $ 18,055 $ 25,686
Number of Loans | loan 39 44
Pre-Modification Balance $ 24,071 $ 26,890
Current Balance 18,055 25,686
Performing    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Troubled debt restructurings 0 5,443
Nonaccrual    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Troubled debt restructurings 18,055 20,243
Commercial | Commercial & industrial    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Troubled debt restructurings $ 261 $ 197
Number of Loans | loan 3 2
Pre-Modification Balance $ 349 $ 200
Current Balance 261 197
Commercial | Commercial & industrial | Performing    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Troubled debt restructurings 0 0
Commercial | Commercial & industrial | Nonaccrual    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Troubled debt restructurings 261 197
Commercial | Owner-occupied commercial real estate (“CRE”)    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Troubled debt restructurings $ 2,377 $ 6,354
Number of Loans | loan 4 6
Pre-Modification Balance $ 5,471 $ 6,913
Current Balance 2,377 6,354
Commercial | Owner-occupied commercial real estate (“CRE”) | Performing    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Troubled debt restructurings 0 3,466
Commercial | Owner-occupied commercial real estate (“CRE”) | Nonaccrual    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Troubled debt restructurings 2,377 2,888
Commercial | Agricultural    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Troubled debt restructurings $ 15,037 $ 16,835
Number of Loans | loan 29 31
Pre-Modification Balance $ 17,405 $ 17,228
Current Balance 15,037 16,835
Commercial | Agricultural | Performing    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Troubled debt restructurings 0 0
Commercial | Agricultural | Nonaccrual    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Troubled debt restructurings 15,037 16,835
Commercial real estate | CRE investment    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Troubled debt restructurings $ 293 $ 918
Number of Loans | loan 1 1
Pre-Modification Balance $ 296 $ 919
Current Balance 293 918
Commercial real estate | CRE investment | Performing    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Troubled debt restructurings 0 918
Commercial real estate | CRE investment | Nonaccrual    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Troubled debt restructurings 293 0
Commercial real estate | Construction & land development    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Troubled debt restructurings $ 75 $ 308
Number of Loans | loan 1 1
Pre-Modification Balance $ 533 $ 533
Current Balance 75 308
Commercial real estate | Construction & land development | Performing    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Troubled debt restructurings 0 0
Commercial real estate | Construction & land development | Nonaccrual    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Troubled debt restructurings 75 308
Residential | Residential first mortgage    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Troubled debt restructurings $ 12 $ 928
Number of Loans | loan 1 2
Pre-Modification Balance $ 17 $ 931
Current Balance 12 928
Residential | Residential first mortgage | Performing    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Troubled debt restructurings 0 913
Residential | Residential first mortgage | Nonaccrual    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Troubled debt restructurings 12 15
Residential | Residential junior mortgage    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Troubled debt restructurings $ 0 $ 146
Number of Loans | loan 0 1
Pre-Modification Balance $ 0 $ 166
Current Balance 0 146
Residential | Residential junior mortgage | Performing    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Troubled debt restructurings 0 146
Residential | Residential junior mortgage | Nonaccrual    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Troubled debt restructurings $ 0 $ 0
v3.22.4
PREMISES AND EQUIPMENT - Summary of Premises and Equipment, Less Accumulated Depreciation (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Line Items]    
Premises and equipment, gross $ 152,628 $ 131,711
Less accumulated depreciation and amortization 43,672 37,145
Premises and equipment, net 108,956 94,566
Land    
Property, Plant and Equipment [Line Items]    
Premises and equipment, gross 14,841 10,806
Land improvements    
Property, Plant and Equipment [Line Items]    
Premises and equipment, gross 5,361 3,896
Building and improvements    
Property, Plant and Equipment [Line Items]    
Premises and equipment, gross 89,630 79,754
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Premises and equipment, gross 7,079 6,514
Furniture and equipment    
Property, Plant and Equipment [Line Items]    
Premises and equipment, gross $ 35,717 $ 30,741
v3.22.4
PREMISES AND EQUIPMENT - Narrative (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
branch
Dec. 31, 2020
USD ($)
branch
Property, Plant and Equipment [Line Items]      
Depreciation expense $ 7.6 $ 5.0 $ 4.4
Rent expense $ 2.2 $ 1.3 $ 1.0
Number of branches closed | branch   15 8
Accelerated depreciation   $ (0.9) $ (0.5)
Number of branches closed, owned locations | branch     5
Number of branches closed, leased locations | branch     3
Lease termination charge     $ 1.0
Write-down upon transfer of the owned locations to OREO     $ 0.5
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 8 years    
v3.22.4
PREMISES AND EQUIPMENT - Other Information Related To Operating Leases (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Abstract]      
Operating lease cost $ 1,778 $ 1,018 $ 834
Variable lease cost 448 234 169
Net lease cost $ 2,226 $ 1,252 $ 1,003
Weighted average remaining lease term (years) 5 years 4 months 24 days 6 years 3 months 18 days 5 years 1 month 6 days
Weighted average discount rate 2.30% 1.50% 2.00%
v3.22.4
PREMISES AND EQUIPMENT - Minimum Annual Rentals Under these Noncancelable Agreements with Remaining Terms in Excess of One Year (Details)
$ in Thousands
Dec. 31, 2022
USD ($)
Property, Plant and Equipment [Abstract]  
2023 $ 2,437
2024 2,200
2025 1,876
2026 1,688
2027 1,519
Thereafter 1,417
Total future minimum lease payments 11,137
Less: amount representing interest (252)
Present value of net future minimum lease payments $ 10,885
v3.22.4
GOODWILL AND OTHER INTANGIBLES AND SERVICING RIGHTS - Summary of Goodwill and Other Intangibles (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]      
Goodwill $ 367,387 $ 317,189 $ 163,151
Other intangibles 35,051 22,303  
Goodwill and other intangibles, net 402,438 339,492  
Core deposit intangibles      
Finite-Lived Intangible Assets [Line Items]      
Other intangibles 32,701 19,445  
Customer list intangibles      
Finite-Lived Intangible Assets [Line Items]      
Other intangibles $ 2,350 $ 2,858  
v3.22.4
GOODWILL AND OTHER INTANGIBLES AND SERVICING RIGHTS - Goodwill (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Goodwill:    
Goodwill at beginning of year $ 317,189 $ 163,151
Acquisitions 49,970 154,038
Purchase accounting adjustment 228 0
Goodwill at end of year $ 367,387 $ 317,189
v3.22.4
GOODWILL AND OTHER INTANGIBLES AND SERVICING RIGHTS - Other Intangibles (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]      
Net book value $ 35,051 $ 22,303  
Amortization during the period 6,616 3,494 $ 3,567
Core deposit intangibles:      
Finite-Lived Intangible Assets [Line Items]      
Gross carrying amount 60,724 41,360  
Accumulated Amortization (28,023) (21,915)  
Net book value 32,701 19,445  
Additions during the period 19,364 13,595  
Amortization during the period 6,108 2,987  
Customer list intangibles      
Finite-Lived Intangible Assets [Line Items]      
Gross carrying amount 5,523 5,523  
Accumulated Amortization (3,173) (2,665)  
Net book value 2,350 2,858  
Amortization during the period $ 508 $ 507  
v3.22.4
GOODWILL AND OTHER INTANGIBLES AND SERVICING RIGHTS - Mortgage Servicing Rights (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
MSR asset    
Asset    
Asset at beginning of year $ 13,636 $ 10,230
Capitalized MSR 2,327 4,329
Asset acquired 0 1,322
Amortization during the period (2,883) (2,245)
Asset at end of year 13,080 13,636
Valuation allowance:    
Valuation allowance at beginning of year (1,200) (1,000)
Additions 0 (500)
Reversals 700 300
Valuation allowance at end of year (500) (1,200)
MSR asset, net 12,580 12,436
Fair value of MSR asset at end of period 17,215 15,599
Residential mortgage loans serviced for others $ 1,637,109 $ 1,583,577
Net book value of MSR asset to loans serviced for others 0.77% 0.79%
Agricultural loans serviced for others $ 1,637,109 $ 1,583,577
LSR asset    
Asset    
Asset at beginning of year 20,055 0
Asset acquired 0 20,055
Amortization during the period (9,016) 0
Asset at end of year 11,039 20,055
Valuation allowance:    
Residential mortgage loans serviced for others 538,392 793,655
Agricultural loans serviced for others $ 538,392 $ 793,655
v3.22.4
GOODWILL AND OTHER INTANGIBLES AND SERVICING RIGHTS - Estimated Future Amortization Expense (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Core Deposit and Customer List Intangibles    
Net book value $ 35,051 $ 22,303
Core deposit intangibles    
Core Deposit and Customer List Intangibles    
2023 7,589  
2024 6,298  
2025 5,161  
2026 3,983  
2027 3,218  
Thereafter 6,452  
Net book value 32,701 19,445
Customer list intangibles    
Core Deposit and Customer List Intangibles    
2023 483  
2024 449  
2025 449  
2026 249  
2027 166  
Thereafter 554  
Net book value 2,350 $ 2,858
MSR asset    
Core Deposit and Customer List Intangibles    
2023 2,402  
2024 2,657  
2025 1,913  
2026 1,414  
2027 1,413  
Thereafter 3,281  
Net book value 13,080  
LSR asset    
Core Deposit and Customer List Intangibles    
2023 2,208  
2024 1,962  
2025 1,717  
2026 1,472  
2027 1,227  
Thereafter 2,453  
Net book value $ 11,039  
v3.22.4
OTHER REAL ESTATE OWNED - Summary of Other Real Estate Owned Net of Valuation Allowances (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Other Real Estate [Roll Forward]      
Balance at beginning of period $ 11,955 $ 3,608  
Transfer in loans at net realizable value 183 334  
Transfer in former bank branch properties at net realizable value 25 7,843  
Sales proceeds (13,150) (2,743)  
Net gain from sales 3,206 597 $ 157
Write-downs (244) (28)  
Acquired balance, net 0 2,344  
Balance at end of period $ 1,975 $ 11,955 $ 3,608
v3.22.4
DEPOSITS - Deposit Composition (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Amount    
Noninterest-bearing demand deposits $ 2,361,816 $ 1,975,705
Interest-bearing deposits 1,279,850 1,272,858
Money market 1,707,619 1,561,966
Savings 931,417 803,197
Time 898,219 852,190
Total deposits $ 7,178,921 $ 6,465,916
% of Total    
Noninterest-bearing demand 33.00% 31.00%
Interest-bearing demand 18.00% 20.00%
Money market 24.00% 24.00%
Savings 13.00% 12.00%
Time 12.00% 13.00%
Total deposits 100.00% 100.00%
v3.22.4
DEPOSITS - Maturities of Time Deposits (Details)
$ in Thousands
Dec. 31, 2022
USD ($)
Deposits [Abstract]  
2023 $ 464,568
2024 288,059
2025 112,284
2026 20,321
2027 12,217
Thereafter 770
Total time deposits $ 898,219
v3.22.4
DEPOSITS - Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Deposits [Abstract]    
Aggregate amount of time deposits with minimum denomination $ 77 $ 113
Brokered deposits $ 592 $ 444
v3.22.4
SHORT AND LONG-TERM BORROWINGS - Narrative (Details)
 1 Months Ended 24 Months Ended 48 Months Ended 60 Months Ended
Dec. 31, 2021
USD ($)
note
Dec. 31, 2028
Dec. 31, 2030
Jul. 15, 2031
Dec. 31, 2022
USD ($)
Jul. 31, 2021
USD ($)
Debt Type [Line Items]            
Short-term borrowings $ 0       $ 317,000,000  
Trust preferred securities qualify as Tier 1 capital 37,000,000       38,000,000  
FHLB advances            
Debt Type [Line Items]            
Short-term borrowings         317,000,000  
US Treasury Notes            
Debt Type [Line Items]            
FHLB advances collateralized pledged $ 0       500,000,000  
Maturing January 2023 | FHLB advances            
Debt Type [Line Items]            
Short-term borrowings         $ 117,000,000  
Weighted average interest rate on short-term debt         4.29%  
Maturing September 2023 | FHLB advances            
Debt Type [Line Items]            
Short-term borrowings         $ 200,000,000  
Weighted average interest rate on short-term debt         4.30%  
FHLB advances            
Debt Type [Line Items]            
Weighted average rate of FHLB advances 0.59%       1.09%  
FHLB advances collateralized pledged $ 522,000,000       $ 665,000,000  
Subordinated Notes            
Debt Type [Line Items]            
Face amount issued         $ 152,400,000  
Number of notes assumed | note 2          
Subordinated Notes | Subordinated Notes Due 2031            
Debt Type [Line Items]            
Face amount issued           $ 100,000,000
Subordinated Notes | Subordinated Notes Due 2031 | Interest Rate For The Years One Through FIve            
Debt Type [Line Items]            
Stated interest rate           3.125%
Subordinated Notes | Subordinated Notes Due 2031 | Secured Overnight Financing Rate (SOFR) | Forecast | Interest Rate After Year Five            
Debt Type [Line Items]            
Floating interest rate basis spread       2.375%    
Subordinated Notes | County Subordinated Notes Due 2028            
Debt Type [Line Items]            
Face amount issued $ 30,000,000          
Subordinated Notes | County Subordinated Notes Due 2028 | Interest Rate For The Years One Through FIve            
Debt Type [Line Items]            
Stated interest rate 5.875%          
Subordinated Notes | County Subordinated Notes Due 2028 | LIBOR | Forecast | Interest Rate After Year Five            
Debt Type [Line Items]            
Floating interest rate basis spread   2.88%        
Subordinated Notes | County Subordinated Notes Due 2030            
Debt Type [Line Items]            
Face amount issued $ 22,000,000          
Subordinated Notes | County Subordinated Notes Due 2030 | Interest Rate For The Years One Through FIve            
Debt Type [Line Items]            
Stated interest rate 7.00%          
Subordinated Notes | County Subordinated Notes Due 2030 | Secured Overnight Financing Rate (SOFR) | Forecast | Interest Rate After Year Five            
Debt Type [Line Items]            
Floating interest rate basis spread     6.875%      
v3.22.4
SHORT AND LONG-TERM BORROWINGS - Long-Term Borrowings (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Debt Instrument [Line Items]    
Long-term borrowings $ 225,342 $ 216,915
FHLB advances    
Debt Instrument [Line Items]    
Long-term borrowings 33,000 25,000
Junior subordinated debentures    
Debt Instrument [Line Items]    
Long-term borrowings 39,720 38,885
Subordinated notes    
Debt Instrument [Line Items]    
Long-term borrowings $ 152,622 $ 153,030
v3.22.4
SHORT AND LONG-TERM BORROWINGS - Summary of Maturity of Notes Payable (Details) - FHLB advances
$ in Thousands
Dec. 31, 2022
USD ($)
Debt Instrument [Line Items]  
2023 $ 0
2024 0
2025 5,000
2026 0
2027 0
Thereafter 28,000
Advances from Federal Home Loan Banks $ 33,000
v3.22.4
SHORT AND LONG-TERM BORROWINGS - Junior Subordinated and Subordinated Debentures (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Debt Instrument [Line Items]    
Carrying Value $ 225,342 $ 216,915
Mid-Wisconsin Financial Services, Inc. | LIBOR    
Debt Instrument [Line Items]    
Floating interest rate basis spread 1.43%  
Junior subordinated debentures    
Debt Instrument [Line Items]    
Par $ 48,045  
Unamortized Premium (Discount)/Debt Issue Costs (8,325)  
Carrying Value $ 39,720 $ 38,885
Junior subordinated debentures | Mid-Wisconsin Financial Services, Inc.    
Debt Instrument [Line Items]    
Interest Rate 6.20% 1.63%
Par $ 10,310  
Unamortized Premium (Discount)/Debt Issue Costs (2,576)  
Carrying Value $ 7,734 $ 7,537
Junior subordinated debentures | Baylake Corp.    
Debt Instrument [Line Items]    
Interest Rate 6.08% 1.57%
Par $ 16,598  
Unamortized Premium (Discount)/Debt Issue Costs (3,174)  
Carrying Value $ 13,424 $ 13,187
Junior subordinated debentures | Baylake Corp. | LIBOR    
Debt Instrument [Line Items]    
Floating interest rate basis spread 1.35%  
Junior subordinated debentures | First Menasha Bancshares, Inc.    
Debt Instrument [Line Items]    
Interest Rate 7.53% 3.01%
Par $ 5,155  
Unamortized Premium (Discount)/Debt Issue Costs (487)  
Carrying Value $ 4,668 $ 4,624
Junior subordinated debentures | First Menasha Bancshares, Inc. | LIBOR    
Debt Instrument [Line Items]    
Floating interest rate basis spread 2.79%  
Junior subordinated debentures | County Bancorp Statutory Trust II    
Debt Instrument [Line Items]    
Interest Rate 6.30% 1.73%
Par $ 6,186  
Unamortized Premium (Discount)/Debt Issue Costs (909)  
Carrying Value $ 5,277 $ 5,061
Junior subordinated debentures | County Bancorp Statutory Trust II | LIBOR    
Debt Instrument [Line Items]    
Floating interest rate basis spread 1.53%  
Junior subordinated debentures | County Bancorp Statutory Trust III    
Debt Instrument [Line Items]    
Interest Rate 6.46% 1.89%
Par $ 6,186  
Unamortized Premium (Discount)/Debt Issue Costs (967)  
Carrying Value $ 5,219 $ 5,121
Junior subordinated debentures | County Bancorp Statutory Trust III | LIBOR    
Debt Instrument [Line Items]    
Floating interest rate basis spread 1.69%  
Junior subordinated debentures | Fox River Valley Capital Trust    
Debt Instrument [Line Items]    
Interest Rate 6.40% 6.40%
Par $ 3,610  
Unamortized Premium (Discount)/Debt Issue Costs (212)  
Carrying Value $ 3,398 $ 3,355
Junior subordinated debentures | Fox River Valley Capital Trust | LIBOR    
Debt Instrument [Line Items]    
Floating interest rate basis spread 3.40%  
Subordinated notes    
Debt Instrument [Line Items]    
Par $ 152,400  
Unamortized Premium (Discount)/Debt Issue Costs 222  
Carrying Value $ 152,622 $ 153,030
Subordinated notes | Subordinated Notes Due 2031    
Debt Instrument [Line Items]    
Interest Rate 3.13% 3.13%
Par $ 100,000  
Unamortized Premium (Discount)/Debt Issue Costs (733)  
Carrying Value $ 99,267 $ 99,057
Subordinated notes | County Subordinated Notes Due 2028    
Debt Instrument [Line Items]    
Interest Rate 5.88% 5.88%
Par $ 30,000  
Unamortized Premium (Discount)/Debt Issue Costs 119  
Carrying Value $ 30,119 $ 30,402
Subordinated notes | County Subordinated Notes Due 2030    
Debt Instrument [Line Items]    
Interest Rate 7.00% 7.00%
Par $ 22,400  
Unamortized Premium (Discount)/Debt Issue Costs 836  
Carrying Value $ 23,236 $ 23,571
v3.22.4
EMPLOYEE AND DIRECTOR BENEFIT PLANS - Narrative (Details)
 12 Months Ended
Dec. 31, 2022
USD ($)
plan
shares
Dec. 31, 2021
USD ($)
shares
Dec. 31, 2020
USD ($)
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 $ 4,000,000 $ 2,500,000 $ 2,200,000
Profit sharing contribution $ 1,000,000 500,000 $ 500,000
Employee Stock Purchase Plan      
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]      
ESPP discount percentage from market price, beginning of purchase period 10.00%    
Employee Stock Purchase Plan | Minimum      
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]      
Payroll deductions, per payroll $ 20    
Employee Stock Purchase Plan | Maximum      
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]      
Payroll deductions, per payroll 400    
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 12,100,000 12,700,000  
Non elective contributions to selected recipients $ 2,400,000 $ 5,700,000  
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 1,898 1,018  
Value of shares purchased under deferred compensation plan $ 154,000 $ 73,000  
Value of shares distributed under director plan   $ 366,000  
Shares distributed under director plan (in shares) | shares 0 4,737  
Deferred compensation liability offsetting equity component $ 1,200,000 $ 1,100,000  
Deferred compensation liability offsetting equity component (in shares) | shares 29,660 27,762  
v3.22.4
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expiration period of options 10 years    
Stock based compensation expense $ 6.3 $ 6.6 $ 5.3
Unrecognized compensation cost $ 18.6    
Remaining vesting period over which cost expected to be recognized 4 years    
Stock based compensation tax benefit $ 1.1 0.6 0.8
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) 700,000    
Stock Options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total intrinsic value of options exercised $ 3.9 2.2 2.5
Director | Restricted Stock      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock based compensation expense $ 0.7 $ 0.8 $ 0.4
Restricted stock grants (in shares) 8,852 9,875 7,950
v3.22.4
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, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Dividend yield 0.00% 0.00% 0.00%
Expected volatility 30.00% 30.00% 25.00%
Risk-free interest rate 3.03% 1.19% 1.35%
Expected average life 7 years 7 years 7 years
Weighted average per share fair value of options (in dollars per share) $ 30.99 $ 26.33 $ 20.55
v3.22.4
STOCK-BASED COMPENSATION - Stock Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Stock Options      
Weighted Average Exercise Price      
Shares surrendered to satisfy exercise price and/or tax withholding requirements (in shares) 7,957 10,354 18,952
Stock Incentive Plan      
Option Shares Outstanding      
Outstanding, beginning of period (in shares) 1,833,246 1,437,460 1,443,733
Granted (in shares) 132,929 450,000 54,500
Exercise of stock options (in shares) (82,611) (53,214) (60,773)
Forfeited (in shares) (30,500) (1,000) 0
Outstanding, end of period (in shares) 1,853,064 1,833,246 1,437,460
Weighted Average Exercise Price      
Outstanding, beginning of period (in dollars per share) $ 57.69 $ 50.47 $ 48.75
Granted (in dollars per share) 81.04 77.99 69.44
Exercise of stock options (in dollars per share) 41.84 34.40 26.51
Forfeited (in dollars per share) 75.08 48.85 0
Outstanding, end of period (in dollars per share) $ 59.79 $ 57.69 $ 50.47
Exercisable (in shares) 1,267,935    
Exercisable (in dollars per share) $ 51.83    
Weighted average remaining life outstanding (in years) 5 years 10 months 24 days 6 years 7 months 6 days 6 years 7 months 6 days
Weighted average remaining life exercisable (in years) 4 years 9 months 18 days    
Aggregate intrinsic value outstanding $ 37,526 $ 51,426 $ 23,840
Aggregate intrinsic value exercisable $ 35,461    
v3.22.4
STOCK-BASED COMPENSATION - Schedule of Options Outstanding (Details)
 12 Months Ended
Dec. 31, 2022
$ / shares
shares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Number of Shares Outstanding (in shares) | shares 1,853,064
Number of Shares Exercisable (in shares) | shares 1,267,935
Weighted Average Exercise Price Outstanding (in dollars per share) $ 59.79
Weighted Average Exercise Price Exercisable (in dollars per share) $ 51.83
Weighted Average Remaining Life (Years) Outstanding 5 years 10 months 24 days
Weighted Average Remaining Life (Years) Exercisable 4 years 9 months 18 days
$23.80 – $40.00  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Number of Shares Outstanding (in shares) | shares 154,585
Number of Shares Exercisable (in shares) | shares 154,585
Weighted Average Exercise Price Outstanding (in dollars per share) $ 32.21
Weighted Average Exercise Price Exercisable (in dollars per share) $ 32.21
Weighted Average Remaining Life (Years) Outstanding 2 years 10 months 24 days
Weighted Average Remaining Life (Years) Exercisable 2 years 10 months 24 days
$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 751,450
Number of Shares Exercisable (in shares) | shares 751,450
Weighted Average Exercise Price Outstanding (in dollars per share) $ 48.85
Weighted Average Exercise Price Exercisable (in dollars per share) $ 48.85
Weighted Average Remaining Life (Years) Outstanding 4 years 4 months 24 days
Weighted Average Remaining Life (Years) Exercisable 4 years 4 months 24 days
$50.01 – $65.00  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Number of Shares Outstanding (in shares) | shares 163,500
Number of Shares Exercisable (in shares) | shares 151,400
Weighted Average Exercise Price Outstanding (in dollars per share) $ 56.44
Weighted Average Exercise Price Exercisable (in dollars per share) $ 56.41
Weighted Average Remaining Life (Years) Outstanding 5 years 1 month 6 days
Weighted Average Remaining Life (Years) Exercisable 5 years
$65.01 – $75.00  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Number of Shares Outstanding (in shares) | shares 277,100
Number of Shares Exercisable (in shares) | shares 135,800
Weighted Average Exercise Price Outstanding (in dollars per share) $ 71.02
Weighted Average Exercise Price Exercisable (in dollars per share) $ 70.67
Weighted Average Remaining Life (Years) Outstanding 7 years 3 months 18 days
Weighted Average Remaining Life (Years) Exercisable 7 years
$75.01 – $94.90  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Number of Shares Outstanding (in shares) | shares 506,429
Number of Shares Exercisable (in shares) | shares 74,700
Weighted Average Exercise Price Outstanding (in dollars per share) $ 79.37
Weighted Average Exercise Price Exercisable (in dollars per share) $ 78.77
Weighted Average Remaining Life (Years) Outstanding 8 years 8 months 12 days
Weighted Average Remaining Life (Years) Exercisable 8 years 4 months 24 days
Minimum | $23.80 – $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) $ 23.80
Weighted Average Exercise Price Exercisable (in dollars per share) 23.80
Minimum | $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 | $50.01 – $65.00  
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 | $65.01 – $75.00  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Weighted Average Exercise Price Outstanding (in dollars per share) 65.01
Weighted Average Exercise Price Exercisable (in dollars per share) 65.01
Minimum | $75.01 – $94.90  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Weighted Average Exercise Price Outstanding (in dollars per share) 75.01
Weighted Average Exercise Price Exercisable (in dollars per share) 75.01
Maximum | $23.80 – $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) 40.00
Weighted Average Exercise Price Exercisable (in dollars per share) 40.00
Maximum | $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) 50.00
Weighted Average Exercise Price Exercisable (in dollars per share) 50.00
Maximum | $50.01 – $65.00  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Weighted Average Exercise Price Outstanding (in dollars per share) 65.00
Weighted Average Exercise Price Exercisable (in dollars per share) 65.00
Maximum | $65.01 – $75.00  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Weighted Average Exercise Price Outstanding (in dollars per share) 75.00
Weighted Average Exercise Price Exercisable (in dollars per share) 75.00
Maximum | $75.01 – $94.90  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Weighted Average Exercise Price Outstanding (in dollars per share) 94.90
Weighted Average Exercise Price Exercisable (in dollars per share) $ 94.90
v3.22.4
STOCK-BASED COMPENSATION - Restricted Stock Award Activity (Details) - Restricted Stock - $ / shares
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Weighted Average Grant Date Fair  Value      
Shares surrendered to satisfy tax withholding requirements (in shares) 2,249 3,215 4,733
Stock Incentive Plan      
Restricted Shares Outstanding      
Outstanding, beginning of period (in shares) 25,801 18,925 22,521
Granted (in shares) 72,948 33,153 19,672
Vested (in shares) (24,659) (25,831) (23,268)
Forfeited (in shares) (600) (446) 0
Outstanding, end of period (in shares) 73,490 25,801 18,925
Weighted Average Grant Date Fair  Value      
Outstanding, beginning of period (in dollars per share) $ 71.42 $ 53.57 $ 44.94
Granted (in dollars per share) 76.81 75.83 60.29
Vested (in dollars per share) 72.64 64.53 50.90
Forfeited (in dollars per share) 56.01 41.44 0
Outstanding, end of period (in dollars per share) $ 76.49 $ 71.42 $ 53.57
v3.22.4
STOCKHOLDERS' EQUITY (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Aug. 26, 2022
Dec. 03, 2021
Sep. 03, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Stock Transaction [Line Items]            
Stock repurchased under plan       $ 61,497 $ 62,583 $ 42,088
Common stock issued in acquisitions       98,149    
Charter Bankshares, Inc.            
Stock Transaction [Line Items]            
Number of common stock issued for consideration (in shares) 1,262,360          
Common stock issued in acquisitions $ 98,000          
Value of cash consideration $ 39,000          
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        
Common Stock Repurchase Program            
Stock Transaction [Line Items]            
Stock repurchased under plan       $ 61,000 $ 61,000  
Stock repurchased (in shares)       672,000 793,000  
Weighted average price of share cancelled (in dollars per share)       $ 91.54 $ 77.50  
Stock repurchase remaining authorized amount       $ 48,000    
v3.22.4
INCOME TAXES - Current and Deferred Amounts of Income Tax Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]      
Current $ 44,384 $ 14,138 $ 29,764
Deferred (12,907) 6,332 (9,288)
Income tax expense $ 31,477 $ 20,470 $ 20,476
v3.22.4
INCOME TAXES - Income Tax Reconciliation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]      
Tax on pretax income, less noncontrolling interest, at statutory rates $ 26,405 $ 17,023 $ 16,926
State income taxes, net of federal effect 7,847 5,064 5,030
Tax-exempt interest income (1,037) (517) (513)
Increase in cash surrender value life insurance (1,040) (570) (738)
Stock-based employee compensation (1,101) (618) (839)
Executive compensation 82 163 272
Other, net 321 (75) 338
Income tax expense $ 31,477 $ 20,470 $ 20,476
v3.22.4
INCOME TAXES - Net Deferred Tax Asset (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Deferred tax assets:    
ACL-Loans $ 22,379 $ 14,650
Net operating loss carryforwards 2,721 3,800
Compensation 10,274 9,194
Other 1,759 2,605
Other real estate 672 1,364
Basis difference on acquired securities 3,172 0
Unrealized loss on securities AFS 21,011 0
Total deferred tax assets 61,988 31,613
Deferred tax liabilities:    
Premises and equipment (3,000) (3,860)
Prepaid expenses (801) (1,110)
Basis difference on acquired securities 0 (1,678)
Core deposit and other intangibles (8,817) (5,278)
Purchase accounting adjustments to liabilities (1,595) (1,725)
MSR and LSR assets (6,570) (8,726)
Other (513) (2,462)
Unrealized gain on securities AFS 0 (1,392)
Total deferred tax liabilities (21,296) (26,231)
Net deferred tax assets $ 40,692 $ 5,382
v3.22.4
INCOME TAXES - Narrative (Details) - USD ($)
Dec. 31, 2022
Dec. 31, 2021
Additional Tax information [Line Items]    
Valuation allowance $ 0 $ 0
Federal    
Additional Tax information [Line Items]    
Operating loss carryforwards 8,900,000  
State    
Additional Tax information [Line Items]    
Operating loss carryforwards $ 13,800,000  
v3.22.4
COMMITMENTS AND CONTINGENCIES - Contract or Notional Amount of Exposure to Off-Balance-Sheet Risk (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Commitments to extend credit    
Other Commitments [Line Items]    
Contract and notional amounts of commitments $ 1,850,601 $ 1,433,881
Financial standby letters of credit    
Other Commitments [Line Items]    
Contract and notional amounts of commitments 26,530 13,562
Performance standby letters of credit    
Other Commitments [Line Items]    
Contract and notional amounts of commitments $ 9,375 $ 7,336
v3.22.4
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Derivative [Line Items]    
Commercial-related commitments to extend credit 80.00% 80.00%
Derivative fair value, net $ 0.1 $ 0.1
Federal funds accommodations 195.0 195.0
Interest Rate Lock Commitments    
Derivative [Line Items]    
Commitments to sell residential mortgage loans held for sale considered derivative instruments 9.0 50.0
Forward Commitments    
Derivative [Line Items]    
Commitments to sell residential mortgage loans held for sale considered derivative instruments $ 9.0 $ 1.0
v3.22.4
RELATED PARTY TRANSACTIONS - Loans to Related Parties (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
Loans and Leases Receivable, Related Parties [Roll Forward]  
Balance at beginning of year $ 112,917
New loans 20,713
Repayments (21,131)
Changes due to status of executive officers and directors (1,792)
Balance at end of year $ 110,707
v3.22.4
RELATED PARTY TRANSACTIONS - Narrative (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 3 Months Ended 12 Months Ended 24 Months Ended 48 Months Ended
Aug. 31, 2022
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2022
USD ($)
branch_location
construction_project
Dec. 31, 2021
USD ($)
executive
$ / shares
shares
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2022
USD ($)
Sep. 30, 2022
Related Party Transaction [Line Items]                  
Number of executives stock was repurchased from | executive       1          
Purchase of noncontrolling interest     $ 0 $ 0 $ 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              
Charter Administrative Location In Facility                  
Related Party Transaction [Line Items]                  
Rent expense $ 49                
Director                  
Related Party Transaction [Line Items]                  
Stock repurchased (in shares) | shares       2,193          
Cumulative amount repurchased       $ 200          
Average cost per share (in dollars per share) | $ / shares       $ 76.14          
Director | New branch location in facility opened in October 2013                  
Related Party Transaction [Line Items]                  
Rent expense     153 $ 124 122        
Director | 2022 New Branch Construction                  
Related Party Transaction [Line Items]                  
Payments for branch reconstruction     1,100         $ 2,300  
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%          
Director | Two Small Branch Construction                  
Related Party Transaction [Line Items]                  
Payments for branch reconstruction     $ 154            
Number Of Construction Projects | construction_project     2            
Number Of Branch Locations | branch_location     2            
Nicolet Joint Ventures, LLC (the "JV") | Nicolet national bank                  
Related Party Transaction [Line Items]                  
Rent expense         $ 1,300        
v3.22.4
ASSETS GAINS (LOSSES), NET - Components of Net Gain (Loss) on Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Assets Gains (Losses), Net [Abstract]      
Gains (losses) on sales of securities AFS, net $ (244) $ (283) $ 395
Gains (losses) on equity securities, net (127) 3,445 (987)
Gains (losses) on sales of OREO, net 3,206 597 157
Write-downs of OREO (244) (28) (1,040)
Write-down of other investment 0 0 (100)
Gains (losses) on sales of other investments, net 531 550 0
Gains (losses) on sales or dispositions of other assets, net 8 (100) (230)
Asset gains (losses), net $ 3,130 $ 4,181 $ (1,805)
v3.22.4
REGULATORY CAPITAL REQUIREMENTS - Narrative (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Regulatory Capital Requirements Under Banking Regulations [Abstract]  
Allowable amount of dividends before regulatory approval required $ 28
v3.22.4
REGULATORY CAPITAL REQUIREMENTS - Company's and Bank's Actual Regulatory Capital Amounts and Ratios (Details)
$ in Thousands
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Nicolet Bankshares, Inc    
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]    
Total risk-based capital, Actual amount $ 889,763 $ 793,410
Total risk-based capital, Actual ratio 0.123 0.138
Total risk-based capital, For capital adequacy purposes, Amount $ 577,138 $ 459,648
Total risk-based capital, For capital adequacy purposes, Ratio 0.080 0.080
Tier I risk-based capital, Actual amount $ 684,280 $ 604,199
Tier I risk-based capital, Actual ratio 0.095 0.105
Tier I risk-based capital, For capital adequacy purposes, Amount $ 432,853 $ 344,736
Tier I risk-based capital, For capital adequacy purposes, Ratio 0.060 0.060
Common equity Tier 1 capital, Actual Amount $ 646,341 $ 567,095
Common equity Tier 1 capital, Actual Ratio 0.090 0.099
Common equity Tier 1 capital, For Capital Adequacy Purposes, Amount $ 324,640 $ 258,552
Common equity Tier I risk-based capital, For capital adequacy purposes, Ratio 0.045 0.045
Leverage, Actual amount $ 684,280 $ 604,199
Leverage, Actual ratio 0.082 0.094
Leverage, For capital adequacy purposes, Amount $ 335,621 $ 256,990
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 $ 816,951 $ 700,869
Total risk-based capital, Actual ratio 0.113 0.122
Total risk-based capital, For capital adequacy purposes, Amount $ 576,241 $ 459,476
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 $ 720,301 $ 574,345
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 $ 764,090 $ 664,688
Tier I risk-based capital, Actual ratio 0.106 0.116
Tier I risk-based capital, For capital adequacy purposes, Amount $ 432,181 $ 344,607
Tier I risk-based capital, For capital adequacy purposes, Ratio 0.060 0.060
Tier I risk-based capital, To be well capitalized under prompt corrective action provisions, Amount $ 576,241 $ 459,476
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 $ 764,090 $ 664,688
Common equity Tier 1 capital, Actual Ratio 0.106 0.116
Common equity Tier 1 capital, For Capital Adequacy Purposes, Amount $ 324,135 $ 258,455
Common equity Tier I risk-based capital, For capital adequacy purposes, Ratio 0.045 0.045
Common equity Tier 1 capital, To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount $ 468,196 $ 373,324
Common equity Tier 1 capital, To be well capitalized under prompt corrective action provisions ratio, Ratio 0.065 0.065
Leverage, Actual amount $ 764,090 $ 664,688
Leverage, Actual ratio 0.091 0.103
Leverage, For capital adequacy purposes, Amount $ 334,916 $ 256,990
Leverage, For capital adequacy purposes, Ratio 0.040 0.040
Leverage, To be well capitalized under prompt corrective action provisions, Amount $ 418,645 $ 321,237
Leverage, To be well capitalized under prompt corrective action provisions, Ratio 0.050 0.050
v3.22.4
FAIR VALUE MEASUREMENTS - Measured at Fair Value on Recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities AFS $ 917,618 $ 921,661
Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities AFS 917,618 921,661
Derivative assets 0 1,064
Derivative liabilities 0 1,064
Recurring | 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
Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities AFS 909,465 913,596
Derivative assets 0 1,064
Derivative liabilities 0 1,064
Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities AFS 8,153 8,065
Derivative assets 0 0
Derivative liabilities 0 0
U.S. Treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities AFS 183,830 190,272
U.S. Treasury securities | Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities AFS 183,830 190,272
U.S. Treasury securities | Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities AFS 0 0
U.S. Treasury securities | Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities AFS 183,830 190,272
U.S. Treasury securities | Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities AFS 0 0
U.S. government agency securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities AFS 2,100 1,005
U.S. government agency securities | Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities AFS 2,100 1,005
U.S. government agency securities | Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities AFS 0 0
U.S. government agency securities | Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities AFS 2,100 1,005
U.S. government agency securities | Recurring | 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 398,188 312,737
State, county and municipals | Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities AFS 398,188 312,737
State, county and municipals | Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities AFS 0 0
State, county and municipals | Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities AFS 396,315 310,316
State, county and municipals | Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities AFS 1,873 2,421
Mortgage-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities AFS 200,932 271,262
Mortgage-backed securities | Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities AFS 200,932 271,262
Mortgage-backed securities | Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities AFS 0 0
Mortgage-backed securities | Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities AFS 199,951 270,260
Mortgage-backed securities | Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities AFS 981 1,002
Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities AFS 132,568 146,385
Corporate debt securities | Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities AFS 132,568 146,385
Corporate debt securities | Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities AFS 0 0
Corporate debt securities | Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities AFS 127,269 141,743
Corporate debt securities | Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities AFS 5,299 4,642
Equity securities | Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Other investments (equity securities) 4,376 5,660
Equity securities | Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Other investments (equity securities) 4,376 5,660
Equity securities | Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Other investments (equity securities) 0 0
Equity securities | Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Other investments (equity securities) $ 0 $ 0
v3.22.4
FAIR VALUE MEASUREMENTS - Changes in Level 3 Assets (Details) - Recurring - Securities AFS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Level 3 Fair Value Measurements:    
Unrealized gains / (losses) $ (211) $ 0
Level 3    
Level 3 Fair Value Measurements:    
Balance at beginning of year 8,065 3,130
Acquired balances 750 4,935
Paydowns/Sales/Settlements (451) 0
Balance at end of year $ 8,153 $ 8,065
v3.22.4
FAIR VALUE MEASUREMENTS - Fair Value on Nonrecurring Basis (Details) - Nonrecurring - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Collateral dependent loans    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, fair value disclosure $ 30,951  
OREO    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, fair value disclosure 1,975 $ 11,955
MSR asset    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, fair value disclosure 12,580 12,436
Collateral dependent loans    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, fair value disclosure   36,230
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 | 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 | 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 30,951  
Level 3 | OREO    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, fair value disclosure 1,975 11,955
Level 3 | MSR asset    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, fair value disclosure $ 12,580 12,436
Level 3 | Collateral dependent loans    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, fair value disclosure   $ 36,230
v3.22.4
FAIR VALUE MEASUREMENTS - Carrying amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Financial assets:    
Securities AFS $ 917,618 $ 921,661
Securities HTM 623,352 648,394
Carrying Amount    
Financial assets:    
Cash and cash equivalents 154,723 595,292
Certificates of deposit in other banks 12,518 21,920
Securities AFS 917,618 921,661
Securities HTM 679,128 651,803
Other investments 65,286 44,008
Loans held for sale 1,482 6,447
Loans, net 6,118,670 4,572,164
Accrued interest receivable 21,275 15,277
Financial liabilities:    
Deposits 7,178,921 6,465,916
Short-term borrowings 317,000  
Long-term borrowings 225,342 216,915
Accrued interest payable 4,265 3,078
Carrying Amount | MSR asset    
Financial assets:    
Servicing rights 12,580 12,436
Estimated Fair Value    
Financial assets:    
Cash and cash equivalents 154,723 595,292
Certificates of deposit in other banks 12,407 22,236
Securities AFS 917,618 921,661
Securities HTM 623,352 648,394
Other investments 65,286 44,008
Loans held for sale 1,529 6,616
Loans, net 5,863,570 4,606,851
Accrued interest receivable 21,275 15,277
Financial liabilities:    
Deposits 7,172,779 6,463,064
Short-term borrowings 317,000  
Long-term borrowings 220,513 216,092
Accrued interest payable 4,265 3,078
Estimated Fair Value | MSR asset    
Financial assets:    
Servicing rights 17,215 15,599
Level 1 | Estimated Fair Value    
Financial assets:    
Cash and cash equivalents 154,723 595,292
Certificates of deposit in other banks 0 0
Securities AFS 0 0
Securities HTM 0 0
Other investments 4,376 5,660
Loans held for sale 0 0
Loans, net 0 0
Accrued interest receivable 21,275 15,277
Financial liabilities:    
Deposits 0 0
Short-term borrowings 317,000  
Long-term borrowings 0 0
Accrued interest payable 4,265 3,078
Level 1 | Estimated Fair Value | MSR asset    
Financial assets:    
Servicing rights 0 0
Level 2 | Estimated Fair Value    
Financial assets:    
Cash and cash equivalents 0 0
Certificates of deposit in other banks 12,407 22,236
Securities AFS 909,465 913,596
Securities HTM 623,352 648,394
Other investments 52,093 32,110
Loans held for sale 1,529 6,616
Loans, net 0 0
Accrued interest receivable 0 0
Financial liabilities:    
Deposits 0 0
Short-term borrowings 0  
Long-term borrowings 33,001 25,097
Accrued interest payable 0 0
Level 2 | Estimated Fair Value | MSR asset    
Financial assets:    
Servicing rights 0 0
Level 3 | Estimated Fair Value    
Financial assets:    
Cash and cash equivalents 0 0
Certificates of deposit in other banks 0 0
Securities AFS 8,153 8,065
Securities HTM 0 0
Other investments 8,817 6,238
Loans held for sale 0 0
Loans, net 5,863,570 4,606,851
Accrued interest receivable 0 0
Financial liabilities:    
Deposits 7,172,779 6,463,064
Short-term borrowings 0  
Long-term borrowings 187,512 190,995
Accrued interest payable 0 0
Level 3 | Estimated Fair Value | MSR asset    
Financial assets:    
Servicing rights $ 17,215 $ 15,599
v3.22.4
PARENT COMPANY ONLY FINANCIAL INFORMATION - Balance Sheets (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Assets    
Cash and due from subsidiary $ 121,211 $ 209,349
Total assets 8,763,969 7,695,037
Liabilities and Stockholders’ Equity    
Other liabilities 70,177 68,729
Stockholders’ equity 972,529 891,891
Total liabilities and stockholders’ equity 8,763,969 7,695,037
Nicolet Bankshares, Inc    
Assets    
Cash and due from subsidiary 63,927 84,656
Investments 10,313 9,684
Investments in subsidiaries 1,094,063 998,032
Other assets 392 1,503
Total assets 1,168,695 1,093,875
Liabilities and Stockholders’ Equity    
Junior subordinated debentures 39,720 38,885
Subordinated notes 152,622 153,030
Other liabilities 3,824 10,069
Stockholders’ equity 972,529 891,891
Total liabilities and stockholders’ equity $ 1,168,695 $ 1,093,875
v3.22.4
PARENT COMPANY ONLY FINANCIAL INFORMATION - Statements of Income (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Condensed Financial Statements, Captions [Line Items]      
Interest income $ 273,918 $ 171,559 $ 149,202
Interest expense 33,957 13,604 19,864
Net interest income 239,961 157,955 129,338
Income tax benefit (31,477) (20,470) (20,476)
Net income 94,260 60,652 60,469
Nicolet Bankshares, Inc      
Condensed Financial Statements, Captions [Line Items]      
Interest income 81 18 39
Interest expense 8,687 2,959 2,313
Net interest income (8,606) (2,941) (2,274)
Dividend income from subsidiaries 77,775 65,000 60,215
Operating expense (457) (2,562) (886)
Gain (loss) on investments, net 395 3,995 (1,087)
Income tax benefit 2,373 437 1,102
Earnings before equity in undistributed income (loss) of subsidiaries 71,480 63,929 57,070
Equity in undistributed income (loss) of subsidiaries 22,780 (3,277) 3,052
Net income $ 94,260 $ 60,652 $ 60,122
v3.22.4
PARENT COMPANY ONLY FINANCIAL INFORMATION - Statements of Cash Flows (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Cash Flows From Operating Activities:      
Net income attributable to Nicolet Bankshares, Inc. $ 94,260 $ 60,652 $ 60,469
Cash Flows From Investing Activities:      
Net cash paid in business combinations (28,221)   (21,820)
Cash Flows From Financing Activities:      
Purchase and retirement of common stock (61,497) (62,583) (42,088)
Proceeds from issuance of common stock, net 3,282 2,382 2,055
Capitalized issuance costs, net 0 (789) 0
Repayments of long-term borrowings (20,000) (187,961) (384,091)
Net increase (decrease) in cash and cash equivalents (440,569) (207,567) 620,800
Nicolet Bankshares, Inc      
Cash Flows From Operating Activities:      
Net income attributable to Nicolet Bankshares, Inc. 94,260 60,652 60,122
Adjustments to reconcile net income to net cash provided by operating activities:      
Accretion of discounts on borrowings 427 584 486
(Gain) loss on investments, net (395) (3,995) 1,087
Change in other assets and liabilities, net (1,775) 1,013 1,786
Equity in undistributed (income) loss of subsidiaries, net of dividends (22,780) 3,277 (3,052)
Net cash provided by operating activities 69,737 61,531 60,429
Cash Flows From Investing Activities:      
Proceeds from sale of investments 1,835 4,105 185
Purchases of investments (2,116) (5,049) (1,179)
Net cash paid in business combinations (31,970) (63,892) (21,644)
Net cash used in investing activities (32,251) (64,836) (22,638)
Cash Flows From Financing Activities:      
Purchase and retirement of common stock (61,497) (62,583) (42,088)
Proceeds from issuance of common stock, net 3,282 2,382 2,055
Capitalized issuance costs, net 0 (789) 0
Repayments of long-term borrowings 0 0 (18,186)
Proceeds from issuance of subordinated notes, net 0 98,953 0
Net cash provided by (used in) financing activities (58,215) 37,963 (58,219)
Net increase (decrease) in cash and cash equivalents (20,729) 34,658 (20,428)
Beginning cash and due from subsidiary 84,656 49,998 70,426
Ending cash and due from subsidiary $ 63,927 $ 84,656 $ 49,998
v3.22.4
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, 2022
Dec. 31, 2021
Dec. 31, 2020
Earnings Per Share [Abstract]      
Net income attributable to Nicolet Bankshares, Inc. $ 94,260 $ 60,652 $ 60,122
Weighted average common shares outstanding (in shares) 13,909,299 10,735,605 10,337,138
Effect of dilutive common stock awards (in shares) 466,000 409,000 204,000
Diluted weighted average common shares outstanding (in shares) 14,374,931 11,144,866 10,541,251
Basic earnings per common share (in dollars per share) $ 6.78 $ 5.65 $ 5.82
Diluted earnings per common share (in dollars per share) $ 6.56 $ 5.44 $ 5.70
v3.22.4
EARNINGS PER COMMON SHARE - Narrative (Details) - shares
shares in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Earnings Per Share [Abstract]      
Shares excluded from calculation of earnings per common share (in shares) 0.1 0.1 0.1
v3.22.4
OTHER ASSETS AND OTHER LIABILITIES HELD FOR SALE (Details) - Held-for-sale - Birmingham Sale
$ in Millions
Dec. 31, 2021
USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Loans $ 199
Deposits $ 51
v3.22.4
Label Element Value
Accounting Standards Update [Extensible Enumeration] us-gaap_AccountingStandardsUpdateExtensibleList Accounting Standards Update 2016-13 [Member]