000117485012/31false2020Q2P2Y00011748502020-01-012020-06-30xbrli:shares00011748502020-07-27iso4217:USD00011748502020-06-3000011748502019-12-31iso4217:USDxbrli:shares00011748502020-04-012020-06-3000011748502019-04-012019-06-3000011748502019-01-012019-06-300001174850us-gaap:FiduciaryAndTrustMember2020-04-012020-06-300001174850us-gaap:FiduciaryAndTrustMember2019-04-012019-06-300001174850us-gaap:FiduciaryAndTrustMember2020-01-012020-06-300001174850us-gaap:FiduciaryAndTrustMember2019-01-012019-06-300001174850us-gaap:AdministrativeServiceMember2020-04-012020-06-300001174850us-gaap:AdministrativeServiceMember2019-04-012019-06-300001174850us-gaap:AdministrativeServiceMember2020-01-012020-06-300001174850us-gaap:AdministrativeServiceMember2019-01-012019-06-300001174850us-gaap:DepositAccountMember2020-04-012020-06-300001174850us-gaap:DepositAccountMember2019-04-012019-06-300001174850us-gaap:DepositAccountMember2020-01-012020-06-300001174850us-gaap:DepositAccountMember2019-01-012019-06-300001174850us-gaap:CreditAndDebitCardMember2020-04-012020-06-300001174850us-gaap:CreditAndDebitCardMember2019-04-012019-06-300001174850us-gaap:CreditAndDebitCardMember2020-01-012020-06-300001174850us-gaap:CreditAndDebitCardMember2019-01-012019-06-300001174850us-gaap:CommonStockMember2020-03-310001174850us-gaap:AdditionalPaidInCapitalMember2020-03-310001174850us-gaap:RetainedEarningsMember2020-03-310001174850us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310001174850us-gaap:NoncontrollingInterestMember2020-03-3100011748502020-03-310001174850us-gaap:RetainedEarningsMember2020-04-012020-06-300001174850us-gaap:NoncontrollingInterestMember2020-04-012020-06-300001174850us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001174850us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-300001174850us-gaap:CommonStockMember2020-06-300001174850us-gaap:AdditionalPaidInCapitalMember2020-06-300001174850us-gaap:RetainedEarningsMember2020-06-300001174850us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001174850us-gaap:NoncontrollingInterestMember2020-06-300001174850us-gaap:CommonStockMember2019-03-310001174850us-gaap:AdditionalPaidInCapitalMember2019-03-310001174850us-gaap:RetainedEarningsMember2019-03-310001174850us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-310001174850us-gaap:NoncontrollingInterestMember2019-03-3100011748502019-03-310001174850us-gaap:RetainedEarningsMember2019-04-012019-06-300001174850us-gaap:NoncontrollingInterestMember2019-04-012019-06-300001174850us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-04-012019-06-300001174850us-gaap:AdditionalPaidInCapitalMember2019-04-012019-06-300001174850us-gaap:CommonStockMember2019-04-012019-06-300001174850us-gaap:CommonStockMember2019-06-300001174850us-gaap:AdditionalPaidInCapitalMember2019-06-300001174850us-gaap:RetainedEarningsMember2019-06-300001174850us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-300001174850us-gaap:NoncontrollingInterestMember2019-06-3000011748502019-06-300001174850us-gaap:CommonStockMember2019-12-310001174850us-gaap:AdditionalPaidInCapitalMember2019-12-310001174850us-gaap:RetainedEarningsMember2019-12-310001174850us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001174850us-gaap:NoncontrollingInterestMember2019-12-310001174850us-gaap:RetainedEarningsMember2020-01-012020-06-300001174850us-gaap:NoncontrollingInterestMember2020-01-012020-06-300001174850us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-06-300001174850us-gaap:AdditionalPaidInCapitalMember2020-01-012020-06-300001174850us-gaap:CommonStockMember2020-01-012020-06-300001174850us-gaap:RetainedEarningsMemberus-gaap:AccountingStandardsUpdate201613Member2020-01-010001174850us-gaap:AccountingStandardsUpdate201613Member2020-01-010001174850us-gaap:CommonStockMember2018-12-310001174850us-gaap:AdditionalPaidInCapitalMember2018-12-310001174850us-gaap:RetainedEarningsMember2018-12-310001174850us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310001174850us-gaap:NoncontrollingInterestMember2018-12-3100011748502018-12-310001174850us-gaap:RetainedEarningsMember2019-01-012019-06-300001174850us-gaap:NoncontrollingInterestMember2019-01-012019-06-300001174850us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-06-300001174850us-gaap:AdditionalPaidInCapitalMember2019-01-012019-06-300001174850us-gaap:CommonStockMember2019-01-012019-06-30xbrli:pure0001174850ncbs:ChoiceBancorpInc.Member2019-11-070001174850ncbs:MergerAgreementMemberncbs:ChoiceBancorpInc.Member2019-11-082019-11-080001174850ncbs:MergerAgreementMemberncbs:ChoiceBancorpInc.Member2019-11-080001174850ncbs:MergerAgreementMemberncbs:ChoiceBancorpInc.Memberus-gaap:CoreDepositsMember2019-11-08ncbs:Branch0001174850ncbs:AdvantageCommunityBancsharesInc.Member2020-06-300001174850ncbs:CommerceFinancialHoldingsInc.Member2020-05-182020-05-180001174850ncbs:CommerceFinancialHoldingsInc.Member2020-05-182020-05-180001174850us-gaap:EmployeeStockOptionMemberncbs:StockIncentivePlanMember2020-01-012020-06-300001174850us-gaap:EmployeeStockOptionMemberncbs:StockIncentivePlanMember2019-01-012019-06-300001174850us-gaap:EmployeeStockOptionMemberncbs:StockIncentivePlanMember2019-12-310001174850us-gaap:EmployeeStockOptionMemberncbs:StockIncentivePlanMember2020-06-300001174850us-gaap:EmployeeStockOptionMember2020-01-012020-06-300001174850us-gaap:EmployeeStockOptionMember2019-01-012019-06-300001174850us-gaap:RestrictedStockMember2019-12-310001174850us-gaap:RestrictedStockMember2020-01-012020-06-300001174850us-gaap:RestrictedStockMember2020-06-300001174850srt:DirectorMemberus-gaap:RestrictedStockMember2020-01-012020-06-300001174850srt:DirectorMemberus-gaap:RestrictedStockMember2019-01-012019-06-300001174850us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2020-06-300001174850us-gaap:USStatesAndPoliticalSubdivisionsMember2020-06-300001174850us-gaap:MortgageBackedSecuritiesMember2020-06-300001174850us-gaap:CorporateDebtSecuritiesMember2020-06-300001174850us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2019-12-310001174850us-gaap:USStatesAndPoliticalSubdivisionsMember2019-12-310001174850us-gaap:MortgageBackedSecuritiesMember2019-12-310001174850us-gaap:CorporateDebtSecuritiesMember2019-12-310001174850us-gaap:AvailableforsaleSecuritiesMember2020-06-300001174850us-gaap:AvailableforsaleSecuritiesMember2019-12-31ncbs:Security00011748502019-01-012019-12-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2019-12-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:PaycheckProtectionProgramLoansMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:PaycheckProtectionProgramLoansMember2019-12-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialRealEstateOwnerOccupiedMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialRealEstateOwnerOccupiedMember2019-12-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:AgriculturalMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:AgriculturalMember2019-12-310001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:CreInvestmentMember2020-06-300001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:CreInvestmentMember2019-12-310001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:ConstructionAndLandDevelopmentMember2020-06-300001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:ConstructionAndLandDevelopmentMember2019-12-310001174850us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2020-06-300001174850us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2019-12-310001174850ncbs:FirstLienMemberus-gaap:ResidentialPortfolioSegmentMember2020-06-300001174850ncbs:FirstLienMemberus-gaap:ResidentialPortfolioSegmentMember2019-12-310001174850us-gaap:JuniorLienMemberus-gaap:ResidentialPortfolioSegmentMember2020-06-300001174850us-gaap:JuniorLienMemberus-gaap:ResidentialPortfolioSegmentMember2019-12-310001174850ncbs:RetailAndOtherFinancingReceivablesMember2020-06-300001174850ncbs:RetailAndOtherFinancingReceivablesMember2019-12-310001174850us-gaap:FinanceReceivablesMember2020-06-300001174850us-gaap:FinanceReceivablesMember2019-12-310001174850ncbs:CumulativeEffectPeriodOfAdoptionAdoptionOfCurrentExpectedLossModelAdjustmentMember2019-12-310001174850ncbs:CumulativeEffectPeriodOfAdoptionInitialPurchasedCreditDeterioratedAllowanceForCreditLossAdjustmentMember2019-12-310001174850ncbs:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310001174850ncbs:CumulativeEffectPeriodOfAdoptionAdoptionOfCurrentExpectedLossModelAdjustmentMemberus-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2019-12-310001174850ncbs:CumulativeEffectPeriodOfAdoptionAdoptionOfCurrentExpectedLossModelAdjustmentMemberus-gaap:CommercialPortfolioSegmentMemberncbs:CommercialRealEstateOwnerOccupiedMember2019-12-310001174850ncbs:CumulativeEffectPeriodOfAdoptionAdoptionOfCurrentExpectedLossModelAdjustmentMemberus-gaap:CommercialPortfolioSegmentMemberncbs:AgriculturalMember2019-12-310001174850ncbs:CumulativeEffectPeriodOfAdoptionAdoptionOfCurrentExpectedLossModelAdjustmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:CreInvestmentMember2019-12-310001174850ncbs:CumulativeEffectPeriodOfAdoptionAdoptionOfCurrentExpectedLossModelAdjustmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:ConstructionAndLandDevelopmentMember2019-12-310001174850ncbs:CumulativeEffectPeriodOfAdoptionAdoptionOfCurrentExpectedLossModelAdjustmentMemberus-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2019-12-310001174850ncbs:CumulativeEffectPeriodOfAdoptionAdoptionOfCurrentExpectedLossModelAdjustmentMemberncbs:FirstLienMemberus-gaap:ResidentialPortfolioSegmentMember2019-12-310001174850ncbs:CumulativeEffectPeriodOfAdoptionAdoptionOfCurrentExpectedLossModelAdjustmentMemberus-gaap:JuniorLienMemberus-gaap:ResidentialPortfolioSegmentMember2019-12-310001174850ncbs:CumulativeEffectPeriodOfAdoptionAdoptionOfCurrentExpectedLossModelAdjustmentMemberncbs:RetailAndOtherFinancingReceivablesMember2019-12-310001174850ncbs:CumulativeEffectPeriodOfAdoptionInitialPurchasedCreditDeterioratedAllowanceForCreditLossAdjustmentMemberus-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2019-12-310001174850ncbs:CumulativeEffectPeriodOfAdoptionInitialPurchasedCreditDeterioratedAllowanceForCreditLossAdjustmentMemberus-gaap:CommercialPortfolioSegmentMemberncbs:CommercialRealEstateOwnerOccupiedMember2019-12-310001174850ncbs:CumulativeEffectPeriodOfAdoptionInitialPurchasedCreditDeterioratedAllowanceForCreditLossAdjustmentMemberus-gaap:CommercialPortfolioSegmentMemberncbs:AgriculturalMember2019-12-310001174850ncbs:CumulativeEffectPeriodOfAdoptionInitialPurchasedCreditDeterioratedAllowanceForCreditLossAdjustmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:CreInvestmentMember2019-12-310001174850ncbs:CumulativeEffectPeriodOfAdoptionInitialPurchasedCreditDeterioratedAllowanceForCreditLossAdjustmentMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:ConstructionAndLandDevelopmentMember2019-12-310001174850ncbs:CumulativeEffectPeriodOfAdoptionInitialPurchasedCreditDeterioratedAllowanceForCreditLossAdjustmentMemberus-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2019-12-310001174850ncbs:CumulativeEffectPeriodOfAdoptionInitialPurchasedCreditDeterioratedAllowanceForCreditLossAdjustmentMemberncbs:FirstLienMemberus-gaap:ResidentialPortfolioSegmentMember2019-12-310001174850ncbs:CumulativeEffectPeriodOfAdoptionInitialPurchasedCreditDeterioratedAllowanceForCreditLossAdjustmentMemberus-gaap:JuniorLienMemberus-gaap:ResidentialPortfolioSegmentMember2019-12-310001174850ncbs:CumulativeEffectPeriodOfAdoptionInitialPurchasedCreditDeterioratedAllowanceForCreditLossAdjustmentMemberncbs:RetailAndOtherFinancingReceivablesMember2019-12-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2020-01-012020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialRealEstateOwnerOccupiedMember2020-01-012020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:AgriculturalMember2020-01-012020-06-300001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:CreInvestmentMember2020-01-012020-06-300001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:ConstructionAndLandDevelopmentMember2020-01-012020-06-300001174850us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2020-01-012020-06-300001174850ncbs:FirstLienMemberus-gaap:ResidentialPortfolioSegmentMember2020-01-012020-06-300001174850us-gaap:JuniorLienMemberus-gaap:ResidentialPortfolioSegmentMember2020-01-012020-06-300001174850ncbs:RetailAndOtherFinancingReceivablesMember2020-01-012020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2018-12-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialRealEstateOwnerOccupiedMember2018-12-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:AgriculturalMember2018-12-310001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:CreInvestmentMember2018-12-310001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:ConstructionAndLandDevelopmentMember2018-12-310001174850us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2018-12-310001174850ncbs:FirstLienMemberus-gaap:ResidentialPortfolioSegmentMember2018-12-310001174850us-gaap:JuniorLienMemberus-gaap:ResidentialPortfolioSegmentMember2018-12-310001174850ncbs:RetailAndOtherFinancingReceivablesMember2018-12-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMember2019-01-012019-12-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialRealEstateOwnerOccupiedMember2019-01-012019-12-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:AgriculturalMember2019-01-012019-12-310001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:CreInvestmentMember2019-01-012019-12-310001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:ConstructionAndLandDevelopmentMember2019-01-012019-12-310001174850us-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2019-01-012019-12-310001174850ncbs:FirstLienMemberus-gaap:ResidentialPortfolioSegmentMember2019-01-012019-12-310001174850us-gaap:JuniorLienMemberus-gaap:ResidentialPortfolioSegmentMember2019-01-012019-12-310001174850ncbs:RetailAndOtherFinancingReceivablesMember2019-01-012019-12-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMemberus-gaap:RealEstateMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMemberncbs:OtherBusinessAssetsMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:PaycheckProtectionProgramLoansMemberus-gaap:RealEstateMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:OtherBusinessAssetsMemberncbs:PaycheckProtectionProgramLoansMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberus-gaap:RealEstateMemberncbs:CommercialRealEstateOwnerOccupiedMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:OtherBusinessAssetsMemberncbs:CommercialRealEstateOwnerOccupiedMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:AgriculturalMemberus-gaap:RealEstateMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:OtherBusinessAssetsMemberncbs:AgriculturalMember2020-06-300001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:RealEstateMemberncbs:CreInvestmentMember2020-06-300001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:OtherBusinessAssetsMemberncbs:CreInvestmentMember2020-06-300001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:RealEstateMember2020-06-300001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:ConstructionAndLandDevelopmentMemberncbs:OtherBusinessAssetsMember2020-06-300001174850us-gaap:ConstructionLoansMemberus-gaap:RealEstateMemberus-gaap:ResidentialPortfolioSegmentMember2020-06-300001174850ncbs:OtherBusinessAssetsMemberus-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2020-06-300001174850us-gaap:RealEstateMemberncbs:FirstLienMemberus-gaap:ResidentialPortfolioSegmentMember2020-06-300001174850ncbs:OtherBusinessAssetsMemberncbs:FirstLienMemberus-gaap:ResidentialPortfolioSegmentMember2020-06-300001174850us-gaap:RealEstateMemberus-gaap:JuniorLienMemberus-gaap:ResidentialPortfolioSegmentMember2020-06-300001174850ncbs:OtherBusinessAssetsMemberus-gaap:JuniorLienMemberus-gaap:ResidentialPortfolioSegmentMember2020-06-300001174850ncbs:RetailAndOtherFinancingReceivablesMemberus-gaap:RealEstateMember2020-06-300001174850ncbs:OtherBusinessAssetsMemberncbs:RetailAndOtherFinancingReceivablesMember2020-06-300001174850us-gaap:RealEstateMember2020-06-300001174850ncbs:OtherBusinessAssetsMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMemberncbs:FinancialAsset30To89DaysPastDueMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:FinancialAsset30To89DaysPastDueMemberncbs:PaycheckProtectionProgramLoansMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberncbs:PaycheckProtectionProgramLoansMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:FinancialAsset30To89DaysPastDueMemberncbs:CommercialRealEstateOwnerOccupiedMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberncbs:CommercialRealEstateOwnerOccupiedMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:FinancialAsset30To89DaysPastDueMemberncbs:AgriculturalMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:AgriculturalMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-06-300001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:FinancialAsset30To89DaysPastDueMemberncbs:CreInvestmentMember2020-06-300001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberncbs:CreInvestmentMember2020-06-300001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:ConstructionAndLandDevelopmentMemberncbs:FinancialAsset30To89DaysPastDueMember2020-06-300001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-06-300001174850ncbs:FinancialAsset30To89DaysPastDueMemberus-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2020-06-300001174850us-gaap:ConstructionLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2020-06-300001174850ncbs:FinancialAsset30To89DaysPastDueMemberncbs:FirstLienMemberus-gaap:ResidentialPortfolioSegmentMember2020-06-300001174850us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberncbs:FirstLienMemberus-gaap:ResidentialPortfolioSegmentMember2020-06-300001174850ncbs:FinancialAsset30To89DaysPastDueMemberus-gaap:JuniorLienMemberus-gaap:ResidentialPortfolioSegmentMember2020-06-300001174850us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:JuniorLienMemberus-gaap:ResidentialPortfolioSegmentMember2020-06-300001174850ncbs:FinancialAsset30To89DaysPastDueMemberncbs:RetailAndOtherFinancingReceivablesMember2020-06-300001174850us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberncbs:RetailAndOtherFinancingReceivablesMember2020-06-300001174850ncbs:FinancialAsset30To89DaysPastDueMember2020-06-300001174850us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMemberncbs:FinancialAsset30To89DaysPastDueMember2019-12-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2019-12-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:FinancialAsset30To89DaysPastDueMemberncbs:CommercialRealEstateOwnerOccupiedMember2019-12-310001174850us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberncbs:CommercialRealEstateOwnerOccupiedMember2019-12-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:FinancialAsset30To89DaysPastDueMemberncbs:AgriculturalMember2019-12-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:AgriculturalMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2019-12-310001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:FinancialAsset30To89DaysPastDueMemberncbs:CreInvestmentMember2019-12-310001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberncbs:CreInvestmentMember2019-12-310001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:ConstructionAndLandDevelopmentMemberncbs:FinancialAsset30To89DaysPastDueMember2019-12-310001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2019-12-310001174850ncbs:FinancialAsset30To89DaysPastDueMemberus-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2019-12-310001174850us-gaap:ConstructionLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2019-12-310001174850ncbs:FinancialAsset30To89DaysPastDueMemberncbs:FirstLienMemberus-gaap:ResidentialPortfolioSegmentMember2019-12-310001174850us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberncbs:FirstLienMemberus-gaap:ResidentialPortfolioSegmentMember2019-12-310001174850ncbs:FinancialAsset30To89DaysPastDueMemberus-gaap:JuniorLienMemberus-gaap:ResidentialPortfolioSegmentMember2019-12-310001174850us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:JuniorLienMemberus-gaap:ResidentialPortfolioSegmentMember2019-12-310001174850ncbs:FinancialAsset30To89DaysPastDueMemberncbs:RetailAndOtherFinancingReceivablesMember2019-12-310001174850us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberncbs:RetailAndOtherFinancingReceivablesMember2019-12-310001174850ncbs:FinancialAsset30To89DaysPastDueMember2019-12-310001174850us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2019-12-310001174850us-gaap:CommercialPortfolioSegmentMemberus-gaap:PassMemberncbs:CommercialAndIndustrialFinancingReceivablesAndPaycheckProtectionProgramLoansMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:WatchMemberncbs:CommercialAndIndustrialFinancingReceivablesAndPaycheckProtectionProgramLoansMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberus-gaap:SpecialMentionMemberncbs:CommercialAndIndustrialFinancingReceivablesAndPaycheckProtectionProgramLoansMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMemberncbs:CommercialAndIndustrialFinancingReceivablesAndPaycheckProtectionProgramLoansMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesAndPaycheckProtectionProgramLoansMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberus-gaap:PassMemberncbs:CommercialRealEstateOwnerOccupiedMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:WatchMemberncbs:CommercialRealEstateOwnerOccupiedMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberus-gaap:SpecialMentionMemberncbs:CommercialRealEstateOwnerOccupiedMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMemberncbs:CommercialRealEstateOwnerOccupiedMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:AgriculturalMemberus-gaap:PassMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:AgriculturalMemberncbs:WatchMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberus-gaap:SpecialMentionMemberncbs:AgriculturalMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:AgriculturalMemberus-gaap:SubstandardMember2020-06-300001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:PassMemberncbs:CreInvestmentMember2020-06-300001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:WatchMemberncbs:CreInvestmentMember2020-06-300001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:SpecialMentionMemberncbs:CreInvestmentMember2020-06-300001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:SubstandardMemberncbs:CreInvestmentMember2020-06-300001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:PassMember2020-06-300001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:ConstructionAndLandDevelopmentMemberncbs:WatchMember2020-06-300001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:SpecialMentionMember2020-06-300001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:SubstandardMember2020-06-300001174850us-gaap:ConstructionLoansMemberus-gaap:PassMemberus-gaap:ResidentialPortfolioSegmentMember2020-06-300001174850us-gaap:ConstructionLoansMemberncbs:WatchMemberus-gaap:ResidentialPortfolioSegmentMember2020-06-300001174850us-gaap:SpecialMentionMemberus-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2020-06-300001174850us-gaap:ConstructionLoansMemberus-gaap:SubstandardMemberus-gaap:ResidentialPortfolioSegmentMember2020-06-300001174850us-gaap:PassMemberncbs:FirstLienMemberus-gaap:ResidentialPortfolioSegmentMember2020-06-300001174850ncbs:WatchMemberncbs:FirstLienMemberus-gaap:ResidentialPortfolioSegmentMember2020-06-300001174850us-gaap:SpecialMentionMemberncbs:FirstLienMemberus-gaap:ResidentialPortfolioSegmentMember2020-06-300001174850us-gaap:SubstandardMemberncbs:FirstLienMemberus-gaap:ResidentialPortfolioSegmentMember2020-06-300001174850us-gaap:PassMemberus-gaap:JuniorLienMemberus-gaap:ResidentialPortfolioSegmentMember2020-06-300001174850ncbs:WatchMemberus-gaap:JuniorLienMemberus-gaap:ResidentialPortfolioSegmentMember2020-06-300001174850us-gaap:SpecialMentionMemberus-gaap:JuniorLienMemberus-gaap:ResidentialPortfolioSegmentMember2020-06-300001174850us-gaap:SubstandardMemberus-gaap:JuniorLienMemberus-gaap:ResidentialPortfolioSegmentMember2020-06-300001174850ncbs:RetailAndOtherFinancingReceivablesMemberus-gaap:PassMember2020-06-300001174850ncbs:RetailAndOtherFinancingReceivablesMemberncbs:WatchMember2020-06-300001174850us-gaap:SpecialMentionMemberncbs:RetailAndOtherFinancingReceivablesMember2020-06-300001174850ncbs:RetailAndOtherFinancingReceivablesMemberus-gaap:SubstandardMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMemberus-gaap:PassMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMemberncbs:WatchMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMemberus-gaap:SpecialMentionMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMemberus-gaap:SubstandardMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:PaycheckProtectionProgramLoansMemberus-gaap:PassMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:WatchMemberncbs:PaycheckProtectionProgramLoansMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberus-gaap:SpecialMentionMemberncbs:PaycheckProtectionProgramLoansMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMemberncbs:PaycheckProtectionProgramLoansMember2020-06-300001174850us-gaap:PassMember2020-06-300001174850ncbs:WatchMember2020-06-300001174850us-gaap:SpecialMentionMember2020-06-300001174850us-gaap:SubstandardMember2020-06-300001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMemberus-gaap:PassMember2019-12-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMemberncbs:WatchMember2019-12-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMemberus-gaap:SpecialMentionMember2019-12-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:CommercialAndIndustrialFinancingReceivablesMemberus-gaap:SubstandardMember2019-12-310001174850us-gaap:CommercialPortfolioSegmentMemberus-gaap:PassMemberncbs:CommercialRealEstateOwnerOccupiedMember2019-12-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:WatchMemberncbs:CommercialRealEstateOwnerOccupiedMember2019-12-310001174850us-gaap:CommercialPortfolioSegmentMemberus-gaap:SpecialMentionMemberncbs:CommercialRealEstateOwnerOccupiedMember2019-12-310001174850us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMemberncbs:CommercialRealEstateOwnerOccupiedMember2019-12-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:AgriculturalMemberus-gaap:PassMember2019-12-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:AgriculturalMemberncbs:WatchMember2019-12-310001174850us-gaap:CommercialPortfolioSegmentMemberus-gaap:SpecialMentionMemberncbs:AgriculturalMember2019-12-310001174850us-gaap:CommercialPortfolioSegmentMemberncbs:AgriculturalMemberus-gaap:SubstandardMember2019-12-310001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:PassMemberncbs:CreInvestmentMember2019-12-310001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:WatchMemberncbs:CreInvestmentMember2019-12-310001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:SpecialMentionMemberncbs:CreInvestmentMember2019-12-310001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:SubstandardMemberncbs:CreInvestmentMember2019-12-310001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:PassMember2019-12-310001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:ConstructionAndLandDevelopmentMemberncbs:WatchMember2019-12-310001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:SpecialMentionMember2019-12-310001174850us-gaap:CommercialRealEstatePortfolioSegmentMemberncbs:ConstructionAndLandDevelopmentMemberus-gaap:SubstandardMember2019-12-310001174850us-gaap:ConstructionLoansMemberus-gaap:PassMemberus-gaap:ResidentialPortfolioSegmentMember2019-12-310001174850us-gaap:ConstructionLoansMemberncbs:WatchMemberus-gaap:ResidentialPortfolioSegmentMember2019-12-310001174850us-gaap:SpecialMentionMemberus-gaap:ConstructionLoansMemberus-gaap:ResidentialPortfolioSegmentMember2019-12-310001174850us-gaap:ConstructionLoansMemberus-gaap:SubstandardMemberus-gaap:ResidentialPortfolioSegmentMember2019-12-310001174850us-gaap:PassMemberncbs:FirstLienMemberus-gaap:ResidentialPortfolioSegmentMember2019-12-310001174850ncbs:WatchMemberncbs:FirstLienMemberus-gaap:ResidentialPortfolioSegmentMember2019-12-310001174850us-gaap:SpecialMentionMemberncbs:FirstLienMemberus-gaap:ResidentialPortfolioSegmentMember2019-12-310001174850us-gaap:SubstandardMemberncbs:FirstLienMemberus-gaap:ResidentialPortfolioSegmentMember2019-12-310001174850us-gaap:PassMemberus-gaap:JuniorLienMemberus-gaap:ResidentialPortfolioSegmentMember2019-12-310001174850ncbs:WatchMemberus-gaap:JuniorLienMemberus-gaap:ResidentialPortfolioSegmentMember2019-12-310001174850us-gaap:SpecialMentionMemberus-gaap:JuniorLienMemberus-gaap:ResidentialPortfolioSegmentMember2019-12-310001174850us-gaap:SubstandardMemberus-gaap:JuniorLienMemberus-gaap:ResidentialPortfolioSegmentMember2019-12-310001174850ncbs:RetailAndOtherFinancingReceivablesMemberus-gaap:PassMember2019-12-310001174850ncbs:RetailAndOtherFinancingReceivablesMemberncbs:WatchMember2019-12-310001174850us-gaap:SpecialMentionMemberncbs:RetailAndOtherFinancingReceivablesMember2019-12-310001174850ncbs:RetailAndOtherFinancingReceivablesMemberus-gaap:SubstandardMember2019-12-310001174850us-gaap:PassMember2019-12-310001174850ncbs:WatchMember2019-12-310001174850us-gaap:SpecialMentionMember2019-12-310001174850us-gaap:SubstandardMember2019-12-31ncbs:Loan0001174850us-gaap:CoreDepositsMember2020-06-300001174850us-gaap:CoreDepositsMember2019-12-310001174850us-gaap:CustomerListsMember2020-06-300001174850us-gaap:CustomerListsMember2019-12-310001174850us-gaap:CoreDepositsMember2020-01-012020-06-300001174850us-gaap:CoreDepositsMember2019-01-012019-12-310001174850us-gaap:CustomerListsMember2020-01-012020-06-300001174850us-gaap:CustomerListsMember2019-01-012019-12-310001174850ncbs:MortgageServicingRightsMember2019-12-310001174850ncbs:MortgageServicingRightsMember2018-12-310001174850ncbs:MortgageServicingRightsMember2020-01-012020-06-300001174850ncbs:MortgageServicingRightsMember2019-01-012019-12-310001174850ncbs:MortgageServicingRightsMember2020-06-300001174850ncbs:PaycheckProtectionProgramLiquidityFacilityMember2020-06-300001174850ncbs:PaycheckProtectionProgramLiquidityFacilityMember2019-12-310001174850us-gaap:FederalHomeLoanBankAdvancesMember2020-06-300001174850us-gaap:FederalHomeLoanBankAdvancesMember2019-12-310001174850us-gaap:JuniorSubordinatedDebtMember2020-06-300001174850us-gaap:JuniorSubordinatedDebtMember2019-12-310001174850us-gaap:SubordinatedDebtMember2020-06-300001174850us-gaap:SubordinatedDebtMember2019-12-310001174850srt:MinimumMemberncbs:PaycheckProtectionProgramLiquidityFacilityMember2020-01-012020-06-300001174850srt:MaximumMemberncbs:PaycheckProtectionProgramLiquidityFacilityMember2020-01-012020-06-300001174850srt:WeightedAverageMemberncbs:PaycheckProtectionProgramLiquidityFacilityMember2020-01-012020-06-300001174850ncbs:NicoletBanksharesStatutoryTrustIMemberus-gaap:JuniorSubordinatedDebtMember2020-06-300001174850ncbs:NicoletBanksharesStatutoryTrustIMemberus-gaap:JuniorSubordinatedDebtMember2019-12-310001174850ncbs:MidWisconsinFinancialServicesIncMemberus-gaap:JuniorSubordinatedDebtMember2020-06-300001174850ncbs:MidWisconsinFinancialServicesIncMemberus-gaap:JuniorSubordinatedDebtMember2019-12-310001174850ncbs:BaylakeCorpMemberus-gaap:JuniorSubordinatedDebtMember2020-06-300001174850ncbs:BaylakeCorpMemberus-gaap:JuniorSubordinatedDebtMember2019-12-310001174850ncbs:FirstMenashaBancsharesIncMemberus-gaap:JuniorSubordinatedDebtMember2020-06-300001174850ncbs:FirstMenashaBancsharesIncMemberus-gaap:JuniorSubordinatedDebtMember2019-12-310001174850us-gaap:LondonInterbankOfferedRateLIBORMemberncbs:MidWisconsinFinancialServicesIncMemberus-gaap:JuniorSubordinatedDebtMember2020-01-012020-06-300001174850us-gaap:LondonInterbankOfferedRateLIBORMemberncbs:BaylakeCorpMemberus-gaap:JuniorSubordinatedDebtMember2020-01-012020-06-300001174850ncbs:FirstMenashaBancsharesIncMemberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:JuniorSubordinatedDebtMember2020-01-012020-06-300001174850us-gaap:SubordinatedDebtMember2015-06-300001174850us-gaap:SubordinatedDebtMember2015-01-012015-06-300001174850us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001174850us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-06-300001174850us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-06-300001174850us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-06-300001174850us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001174850us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-06-300001174850us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-06-300001174850us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-06-300001174850us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesMember2020-06-300001174850us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:MortgageBackedSecuritiesMember2020-06-300001174850us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MortgageBackedSecuritiesMember2020-06-300001174850us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MortgageBackedSecuritiesMember2020-06-300001174850us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001174850us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-06-300001174850us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-06-300001174850us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-06-300001174850us-gaap:FairValueMeasurementsRecurringMember2020-06-300001174850us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-06-300001174850us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-06-300001174850us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-06-300001174850us-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001174850us-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-06-300001174850us-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-06-300001174850us-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-06-300001174850us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001174850us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2019-12-310001174850us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2019-12-310001174850us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2019-12-310001174850us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001174850us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2019-12-310001174850us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2019-12-310001174850us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2019-12-310001174850us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesMember2019-12-310001174850us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:MortgageBackedSecuritiesMember2019-12-310001174850us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MortgageBackedSecuritiesMember2019-12-310001174850us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MortgageBackedSecuritiesMember2019-12-310001174850us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001174850us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2019-12-310001174850us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2019-12-310001174850us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2019-12-310001174850us-gaap:FairValueMeasurementsRecurringMember2019-12-310001174850us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2019-12-310001174850us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2019-12-310001174850us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2019-12-310001174850us-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001174850us-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2019-12-310001174850us-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2019-12-310001174850us-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2019-12-310001174850us-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2019-12-310001174850us-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2018-12-310001174850us-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-01-012020-06-300001174850us-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2019-01-012019-12-310001174850us-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-06-300001174850ncbs:CollateralDependentLoansMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-06-300001174850ncbs:CollateralDependentLoansMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2020-06-300001174850ncbs:CollateralDependentLoansMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2020-06-300001174850ncbs:CollateralDependentLoansMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2020-06-300001174850ncbs:OtherRealEstateOwnedMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-06-300001174850ncbs:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2020-06-300001174850ncbs:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2020-06-300001174850ncbs:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2020-06-300001174850ncbs:MsrAssetMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-06-300001174850us-gaap:FairValueInputsLevel1Memberncbs:MsrAssetMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-06-300001174850us-gaap:FairValueInputsLevel2Memberncbs:MsrAssetMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-06-300001174850us-gaap:FairValueInputsLevel3Memberncbs:MsrAssetMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-06-300001174850ncbs:CollateralDependentImpairedLoansMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310001174850ncbs:CollateralDependentImpairedLoansMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310001174850ncbs:CollateralDependentImpairedLoansMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310001174850ncbs:CollateralDependentImpairedLoansMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310001174850ncbs:OtherRealEstateOwnedMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310001174850ncbs:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310001174850ncbs:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310001174850ncbs:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310001174850ncbs:MsrAssetMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310001174850us-gaap:FairValueInputsLevel1Memberncbs:MsrAssetMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310001174850us-gaap:FairValueInputsLevel2Memberncbs:MsrAssetMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310001174850us-gaap:FairValueInputsLevel3Memberncbs:MsrAssetMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310001174850us-gaap:CarryingReportedAmountFairValueDisclosureMember2020-06-300001174850us-gaap:EstimateOfFairValueFairValueDisclosureMember2020-06-300001174850us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-06-300001174850us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2020-06-300001174850us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel3Member2020-06-300001174850us-gaap:CarryingReportedAmountFairValueDisclosureMember2019-12-310001174850us-gaap:EstimateOfFairValueFairValueDisclosureMember2019-12-310001174850us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-12-310001174850us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2019-12-310001174850us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel3Member2019-12-31

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________
FORM 10-Q
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2020
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                           to                          
Commission file number: 001-37700
NICOLET BANKSHARES, INC.
(Exact Name of Registrant as Specified in its Charter)
Wisconsin 47-0871001
(State or Other Jurisdiction of Incorporation or Organization)
(I.R.S. Employer Identification No.)
111 North Washington Street
Green Bay, Wisconsin 54301
(Address of Principal Executive Offices) 
(Zip Code)
(920) 430-1400
(Registrant’s Telephone Number, Including Area Code)
N/A
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, par value $0.01 per share NCBS The NASDAQ Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filer
Non-accelerated filer Smaller reporting company
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of July 27, 2020 there were 10,417,695 shares of $0.01 par value common stock outstanding.



Nicolet Bankshares, Inc.
Quarterly Report on Form 10-Q
June 30, 2020
TABLE OF CONTENTS
PAGE
3
4
5
6
7
8
2


PART I – FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS:
NICOLET BANKSHARES, INC.
Consolidated Balance Sheets
(In thousands, except share and per share data)
June 30, 2020 December 31, 2019
(Unaudited) (Audited)
Assets
Cash and due from banks $ 66,870    $ 75,433   
Interest-earning deposits 755,814    106,626   
Cash and cash equivalents
822,684    182,059   
Certificates of deposit in other banks 17,809    19,305   
Securities available for sale (“AFS”), at fair value 510,809    449,302   
Other investments 26,375    24,072   
Loans held for sale 21,832    2,706   
Loans 2,821,501    2,573,751   
Allowance for credit losses - loans (“ACL-Loans”) (29,130)   (13,972)  
Loans, net
2,792,371    2,559,779   
Premises and equipment, net 59,896    56,469   
Bank owned life insurance (“BOLI”) 78,953    78,140   
Goodwill and other intangibles, net 164,094    165,967   
Accrued interest receivable and other assets 46,405    39,461   
Total assets
$ 4,541,228    $ 3,577,260   
Liabilities and Stockholders’ Equity
Liabilities:
Noninterest-bearing demand deposits $ 1,087,884    $ 819,055   
Interest-bearing deposits 2,449,921    2,135,398   
Total deposits
3,537,805    2,954,453   
Short-term borrowings —    —   
Long-term borrowings 417,826    67,629   
Accrued interest payable and other liabilities 52,744    38,188   
Total liabilities
4,008,375    3,060,270   
Stockholders’ Equity:
Common stock 104    106   
Additional paid-in capital 301,778    312,733   
Retained earnings 216,863    199,005   
Accumulated other comprehensive income (loss) 13,288    4,418   
Total Nicolet Bankshares, Inc. stockholders’ equity
532,033    516,262   
Noncontrolling interest 820    728   
Total stockholders’ equity and noncontrolling interest
532,853    516,990   
Total liabilities, noncontrolling interest and stockholders’ equity
$ 4,541,228    $ 3,577,260   
Preferred shares authorized (no par value)
10,000,000    10,000,000   
Preferred shares issued and outstanding —    —   
Common shares authorized (par value $0.01 per share)
30,000,000    30,000,000   
Common shares outstanding 10,424,407    10,587,738   
Common shares issued 10,443,763    10,610,259   
See accompanying notes to unaudited consolidated financial statements.
3

ITEM 1. Financial Statements Continued:

NICOLET BANKSHARES, INC.
Consolidated Statements of Income
(In thousands, except share and per share data) (Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2020 2019 2020 2019
Interest income:
Loans, including loan fees $ 33,766    $ 31,209    $ 67,544    $ 61,177   
Investment securities:
Taxable
2,042    2,041    4,114    3,674   
Tax-exempt
509    522    1,000    1,071   
Other interest income 575    798    1,237    1,807   
Total interest income
36,892    34,570    73,895    67,729   
Interest expense:
Deposits 4,455    4,730    9,412    9,507   
Short-term borrowings 38    —    65    —   
Long-term borrowings 902    896    1,658    1,803   
Total interest expense
5,395    5,626    11,135    11,310   
Net interest income
31,497    28,944    62,760    56,419   
Provision for credit losses 3,000    300    6,000    500   
Net interest income after provision for credit losses
28,497    28,644    56,760    55,919   
Noninterest income:
Trust services fee income 1,510    1,569    3,089    3,037   
Brokerage fee income 2,269    2,002    4,591    3,812   
Mortgage income, net 9,963    2,059    12,290    3,262   
Service charges on deposit accounts 813    1,194    2,038    2,364   
Card interchange income 1,637    1,660    3,199    3,080   
BOLI income 540    880    1,243    1,339   
Asset gains (losses), net (748)   7,572    (1,402)   7,744   
Other income 1,487    1,624    2,008    3,108   
Total noninterest income
17,471    18,560    27,056    27,746   
Noninterest expense:
Personnel 14,482    15,358    27,805    27,895   
Occupancy, equipment and office 4,361    3,757    8,565    7,507   
Business development and marketing 2,514    1,579    3,873    2,860   
Data processing 2,399    2,350    4,962    4,705   
Intangibles amortization 880    969    1,873    2,022   
Other expense 3,177    1,714    4,589    3,497   
Total noninterest expense
27,813    25,727    51,667    48,486   
Income before income tax expense
18,155    21,477    32,149    35,179   
Income tax expense 4,576    2,833    7,897    6,185   
Net income
13,579    18,644    24,252    28,994   
Less: Net income attributable to noncontrolling interest 101    95    219    178   
Net income attributable to Nicolet Bankshares, Inc. $ 13,478    $ 18,549    $ 24,033    $ 28,816   
Earnings per common share:
Basic $ 1.29    $ 1.98    $ 2.30    $ 3.06   
Diluted $ 1.28    $ 1.91    $ 2.25    $ 2.97   
Weighted average common shares outstanding:
Basic 10,417,226    9,374,348    10,466,590    9,417,676   
Diluted 10,519,739    9,692,378    10,659,318    9,710,827   
See accompanying notes to unaudited consolidated financial statements.
4

ITEM 1. Financial Statements Continued:

NICOLET BANKSHARES, INC.
Consolidated Statements of Comprehensive Income
(In thousands) (Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2020 2019 2020 2019
Net income $ 13,579    $ 18,644    $ 24,252    $ 28,994   
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on securities AFS:
Net unrealized holding gains (losses)
7,985    4,401    12,314    12,112   
Net realized (gains) losses included in income
(164)   (19)   (164)   (32)  
Income tax (expense) benefit (2,112)   (1,183)   (3,280)   (3,262)  
Total other comprehensive income (loss) 5,709    3,199    8,870    8,818   
Comprehensive income $ 19,288    $ 21,843    $ 33,122    $ 37,812   
See accompanying notes to unaudited consolidated financial statements.
5

ITEM 1. Financial Statements Continued:

NICOLET BANKSHARES, INC.
Consolidated Statements of Stockholders’ Equity
(In thousands) (Unaudited)
Nicolet Bankshares, Inc. Stockholders’ Equity
Common
Stock
Additional
Paid-In
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Non-
controlling
Interest
Total
Balances at March 31, 2020 $ 104    $ 299,903    $ 203,385    $ 7,579    $ 769    $ 511,740   
Comprehensive income:
Net income, three months ended June 30, 2020 —    —    13,478    —    101    13,579   
Other comprehensive income (loss)
—    —    —    5,709    —    5,709   
Stock-based compensation expense —    1,657    —    —    —    1,657   
Exercise of stock options, net —    103    —    —    —    103   
Issuance of common stock —    119    —    —    —    119   
Purchase and retirement of common stock —    (4)   —    —    —    (4)  
Distribution to noncontrolling interest —    —    —    —    (50)   (50)  
Balances at June 30, 2020 $ 104    $ 301,778    $ 216,863    $ 13,288    $ 820    $ 532,853   
Balances at March 31, 2019 $ 94    $ 244,063    $ 154,631    $ (21)   $ 826    $ 399,593   
Comprehensive income:
Net income, three months ended June 30, 2019 —    —    18,549    —    95    18,644   
Other comprehensive income (loss)
—    —    —    3,199    —    3,199   
Stock-based compensation expense —    1,391    —    —    —    1,391   
Exercise of stock options, net   2,482    —    —    —    2,484   
Issuance of common stock —    135    —    —    —    135   
Purchase and retirement of common stock (2)   (13,108)   —    —    —    (13,110)  
Distribution to noncontrolling interest —    —    —    —    (188)   (188)  
Balances at June 30, 2019 $ 94    $ 234,963    $ 173,180    $ 3,178    $ 733    $ 412,148   
Balances at December 31, 2019 $ 106    $ 312,733    $ 199,005    $ 4,418    $ 728    $ 516,990   
Comprehensive income:
Net income, six months ended June 30, 2020 —    —    24,033    —    219    24,252   
Other comprehensive income (loss)
—    —    —    8,870    —    8,870   
Stock-based compensation expense —    2,956    —    —    —    2,956   
Exercise of stock options, net —    954    —    —    —    954   
Issuance of common stock —    334    —    —    —    334   
Purchase and retirement of common stock (2)   (15,199)   —    —    —    (15,201)  
Distribution to noncontrolling interest —    —    —    —    (127)   (127)  
Adoption of new accounting pronouncement (see Note 1) —    —    (6,175)   —    —    (6,175)  
Balances at June 30, 2020 $ 104    $ 301,778    $ 216,863    $ 13,288    $ 820    $ 532,853   
Balances at December 31, 2018 $ 95    $ 247,790    $ 144,364    $ (5,640)   $ 743    $ 387,352   
Comprehensive income:
Net income, six months ended June 30, 2019 —    —    28,816    —    178    28,994   
Other comprehensive income (loss)
—    —    —    8,818    —    8,818   
Stock-based compensation expense —    2,499    —    —    —    2,499   
Exercise of stock options, net   3,180    —    —    —    3,182   
Issuance of common stock —    283    —    —    —    283   
Purchase and retirement of common stock (3)   (18,789)   —    —    —    (18,792)  
Distribution to noncontrolling interest —    —    —    —    (188)   (188)  
Balances at June 30, 2019 $ 94    $ 234,963    $ 173,180    $ 3,178    $ 733    $ 412,148   
See accompanying notes to unaudited consolidated financial statements.
6

ITEM 1. Financial Statements Continued:

NICOLET BANKSHARES, INC.
Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
Six Months Ended June 30,
2020 2019
Cash Flows From Operating Activities:
Net income $ 24,252    $ 28,994   
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, and accretion 4,954    3,194   
Provision for credit losses 6,000    500   
Increase in cash surrender value of life insurance (1,058)   (938)  
Stock-based compensation expense 2,956    2,499   
Asset (gains) losses, net 1,402    (7,744)  
Gain on sale of loans held for sale, net (12,217)   (3,246)  
Proceeds from sale of loans held for sale 395,187    120,753   
Origination of loans held for sale (404,346)   (121,438)  
Net change in:
Accrued interest receivable and other assets
(9,328)   (6,595)  
Accrued interest payable and other liabilities
12,388    3,135   
Net cash provided by (used in) operating activities
20,190    19,114   
Cash Flows From Investing Activities:
Net (increase) decrease in loans (245,750)   (34,459)  
Net (increase) decrease in certificates of deposit in other banks 1,496    (4,403)  
Purchases of securities AFS (94,380)   (29,087)  
Proceeds from sales of securities AFS 9,232    13,240   
Proceeds from calls and maturities of securities AFS 40,017    23,055   
Purchases of other investments (3,738)   (1,373)  
Proceeds from sales of other investments —    17,144   
Purchases of BOLI —    (2,000)  
Proceeds from redemption of BOLI 245    428   
Net (increase) decrease in premises and equipment (6,240)   (3,137)  
Net (increase) decrease in other real estate and other assets —    15   
Net cash provided by (used in) investing activities
(299,118)   (20,577)  
Cash Flows From Financing Activities:
Net increase (decrease) in deposits 583,612    (77,499)  
Proceeds from long-term borrowings 367,841    —   
Repayments of long-term borrowings (17,860)   (129)  
Purchase and retirement of common stock (15,201)   (18,792)  
Proceeds from issuance of common stock 334    283   
Proceeds from exercise of stock options 954    3,182   
Distribution to noncontrolling interest (127)   (188)  
Net cash provided by (used in) financing activities
919,553    (93,143)  
Net increase (decrease) in cash and cash equivalents
640,625    (94,606)  
Cash and cash equivalents:
Beginning
182,059    249,526   
Ending *
$ 822,684    $ 154,920   
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest $ 12,874    $ 11,091   
Cash paid for taxes —    6,340   
Capitalized mortgage servicing rights 2,250    871   
* Cash and cash equivalents at June 30, 2020 include restricted cash of $1.9 million pledged as collateral on interest rate swaps and no reserve balance was required with the Federal Reserve Bank. At June 30, 2019, cash and cash equivalents include restricted cash of $950,000 pledged as collateral on interest rate swaps and $5.8 million for the reserve balance required with the Federal Reserve Bank.
See accompanying notes to unaudited consolidated financial statements.
7


NICOLET BANKSHARES, INC.
Notes to Unaudited Consolidated Financial Statements

Note 1 – Basis of Presentation
General
In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the consolidated balance sheets, statements of income, comprehensive income, changes in stockholders’ equity and cash flows of Nicolet Bankshares, Inc. (the “Company” or “Nicolet”) and its subsidiaries, for the periods presented, and all such adjustments are of a normal recurring nature. All material intercompany transactions and balances have been eliminated. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the entire year.
These interim consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission and, therefore, certain information and footnote disclosures normally presented in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been omitted or abbreviated. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.
Critical Accounting Policies and Estimates
Preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future. Estimates are used in accounting for, among other items, the allowance for credit losses, valuation of loans in acquisition transactions, useful lives for depreciation and amortization, fair value of financial instruments, other-than-temporary impairment calculations, valuation of deferred tax assets, uncertain income tax positions and contingencies. Estimates that are particularly susceptible to significant change for the Company include the determination of the allowance for credit losses, the determination and assessment of deferred tax assets and liabilities, and the valuation of loans acquired in acquisition transactions; therefore, these are critical accounting policies. Factors that may cause sensitivity to the aforementioned estimates include but are not limited to: external market factors such as market interest rates and employment rates, changes to operating policies and procedures, changes in applicable banking or tax regulations, and changes to deferred tax estimates. Actual results may ultimately differ from estimates, although management does not generally believe such differences would materially affect the consolidated financial statements in any individual reporting period presented.
There have been no material changes or developments with respect to the assumptions or methodologies that the Company uses when applying what management believes are critical accounting policies and developing critical accounting estimates as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, except as disclosed in Updates to Significant Accounting Policies and Recent Accounting Developments Adopted below.
Updates to Significant Accounting Policies
Securities Available for Sale: Securities classified as AFS are those securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity. Any decision to sell a security classified as AFS would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors.

The Company evaluates securities AFS in unrealized loss positions on a quarterly basis to determine whether the decline in fair value below the amortized costs basis (impairment) is due to credit-related factors or noncredit-related factors. In making this evaluation, management considers the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. Any impairment that is not credit-related is recognized in other comprehensive income, net of related deferred income taxes. Credit-related impairment is recognized as an allowance for credit losses (“ACL”) on the balance sheet based on the amount by which the amortized cost basis exceeds the fair value, with a corresponding charge to net income. Both the ACL and the charge to net income may be reversed if conditions change. However, if the Company intends to sell an impaired AFS security or more likely than not will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount must be recognized in net income with a corresponding adjustment to the security's amortized cost basis rather than through the establishment of an ACL. See Note 5 for additional disclosures on AFS securities.

Loans – Originated: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are carried at their amortized cost basis, which is the unpaid principal balance outstanding, net of deferred loan fees and costs and any direct principal charge-offs. The Company made an accounting policy election to exclude accrued interest from the amortized cost basis of loans and report such accrued interest as part of accrued interest receivable and other assets on the consolidated balance sheets.
8


Interest income is accrued on the unpaid principal balance using the simple interest method. The accrual of interest income on loans is discontinued when, in the opinion of management, there is reasonable doubt as to the borrower’s ability to meet payment of interest or principal when due. Loans are generally placed on nonaccrual status when contractually past due 90 days or more as to interest or principal, though may be placed in such status earlier based on the circumstances. Loans past due 90 days or more may continue on accrual only when they are well secured and/or in process of collection or renewal. When interest accrual is discontinued, all previously accrued but uncollected interest is reversed against current period interest income. Except in very limited circumstances, cash collections on nonaccrual loans are credited to the loan receivable balance and no interest income is recognized on those loans until the principal balance is paid in full. Accrual of interest may be resumed when the customer is current on all principal and interest payments and has been paying on a timely basis for a sustained period of time. See Note 6 for additional information and disclosures on loans.

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

Prior to January 1, 2020, as described in further detail in the Company’s 2019 Annual Report on Form 10-K, the Company initially classified acquired loans as either purchased credit impaired (“PCI”) loans (i.e., loans that reflect credit deterioration since origination and it is probable at acquisition that the Company will be unable to collect all contractually required payments) or purchased non-impaired loans (i.e., “performing acquired loans”). The Company estimated the fair value of PCI loans based on the amount and timing of expected principal, interest and other cash flows for each loan. The excess of the loan’s contractual principal and interest payments over all cash flows expected to be collected at acquisition was considered an amount that should not be accreted. These credit discounts (“nonaccretable marks”) were included in the determination of the initial fair value for acquired loans; therefore, no allowance for credit losses was recorded at the acquisition date. Differences between the estimated fair values and expected cash flows of acquired loans at the acquisition date that were not credit-based (“accretable marks”) were subsequently accreted to interest income over the estimated life of the loans. Subsequent to the acquisition date for PCI loans, increases in cash flows over those expected at the acquisition date resulted in a move of the discount from nonaccretable to accretable, while decreases in expected cash flows after the acquisition date were recognized through the provision for credit losses.

Subsequent to January 1, 2020, acquired loans that have evidence of more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. At acquisition, an estimate of expected credit losses is made for PCD loans. This initial allowance for credit losses is allocated to individual PCD loans and added to the purchase price or acquisition date fair value to establish the initial amortized cost basis of the PCD loans. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to noncredit factors, resulting in a discount or premium that is amortized to interest income. For acquired loans not deemed PCD loans at acquisition, the difference between the initial fair value mark and the unpaid principal balance are recognized in interest income over the estimated life of the loans. In addition, an initial allowance for expected credit losses is estimated and recorded as provision expense at the acquisition date. The subsequent measurement of expected credit losses for all acquired loans is the same as the subsequent measurement of expected credit losses for originated loans. See Note 6 for additional information and disclosures on loans.

Allowance for Credit Losses - Loans: The ACL-Loans represents management’s estimate of expected credit losses in the Company’s loan portfolio at the balance sheet date. The Company estimates the ACL-Loans based on the amortized 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.

Prior to January 1, 2020, as described in further detail in the Company’s 2019 Annual Report on Form 10-K, the Company used an incurred loss impairment model. This methodology assessed the overall appropriateness of the allowance for credit losses and included allocations for specifically identified impaired loans and loss factors for all remaining loans, with a component primarily based on historical loss rates and another component primarily based on other qualitative factors. Impaired loans were individually assessed and measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price or the fair value of the collateral if the loan was collateral dependent. Loans that were determined not to be impaired were collectively evaluated for impairment, stratified by type and allocated loss ranges based on the Company’s actual historical loss ratios for each strata, and adjustments were also provided for certain environmental and other qualitative factors.

Subsequent to January 1, 2020, the Company uses a current expected credit loss model (“CECL”). This methodology also considers historical loss rates and other qualitative adjustments, as well as a new forward-looking component that considers reasonable and supportable forecasts over the expected life of each loan. To develop the ACL-Loans estimate under the CECL
9


model, the Company segments the loan portfolio into loan pools based on loan type and similar credit risk elements; performs an individual evaluation of PCD loans; calculates the historical loss rates for the segmented loan pools; applies the loss rates over the calculated life of the pooled loans; adjusts for forecasted macro-level economic conditions; and determines qualitative adjustments based on factors and conditions unique to Nicolet's portfolio.

Recent Accounting Developments Adopted
In August 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This ASU modifies the disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. The updated guidance was effective for annual reporting periods, including interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted the updated guidance effective January 1, 2020, with no material impact on its consolidated financial statements as the new ASU only revises disclosure requirements. See Note 9 for fair value disclosures.
In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments intended to improve the financial reporting by requiring earlier recognition of credit losses on loans and certain other financial assets. Topic 326 replaces the incurred loss impairment model (which recognizes losses when a probable threshold is met) with a requirement to recognize lifetime expected credit losses immediately when a financial asset is originated or purchased. The measurement of lifetime expected credit losses is based on historical experience, current conditions, and reasonable and supportable forecasts. The ASU was effective for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted the new accounting standard on January 1, 2020, as required, and recorded a cumulative-effect adjustment of $6 million to retained earnings. See Updates to Significant Accounting Policies above for changes to accounting policies and see Notes 5 and 6 for additional disclosures related to this new accounting pronouncement.
Reclassifications
Certain amounts in the 2019 consolidated financial statements have been reclassified to conform to the 2020 presentation.

Note 2 – Acquisitions
Completed Acquisition:
Choice Bancorp, Inc. (“Choice”): On November 8, 2019, the Company consummated its merger with Choice, pursuant to the terms of the Agreement and Plan of Merger dated June 26, 2019, (the “Choice Merger Agreement”), whereby Choice (at 12% of Nicolet’s then pre-merger asset size) was merged with and into Nicolet, and Choice Bank, the wholly owned bank subsidiary of Choice, was merged with and into the Bank. The system integration was completed, and the two branches of Choice opened on November 12, 2019, as Nicolet National Bank branches, expanding its presence in the Oshkosh marketplace. The Company closed its legacy Oshkosh location concurrently with the consummation of the Choice merger.

The purpose of the merger was to continue Nicolet’s interest in strategic growth, consistent with its plan to improve profitability through efficiency, leverage the strengths of each bank across the combined customer base, and add shareholder value. With the merger, Nicolet became the leading community bank to serve the Oshkosh marketplace.
Pursuant to the Choice Merger Agreement, the final purchase price consisted of issuing 1,184,102 shares of the Company's common stock (given the final stock-for-stock exchange ratio of 0.497, and not exchanging the Choice shares owned by the Company immediately prior to the time of the merger), for common stock consideration of $79.8 million (based on $67.39 per share, the volume weighted average closing price of the Company's common stock over the preceding 30 trading day period) plus cash consideration of $1.7 million. Approximately $0.2 million in direct stock issuance costs for the merger were incurred and charged against additional paid-in capital.
Upon consummation, the Company added $457 million in assets, including $348 million in loans, $289 million in deposits, $1.7 million in core deposit intangible, and $45 million of goodwill. The Company accounted for the transaction under the acquisition method of accounting, and thus, the financial position and results of operations of Choice prior to the consummation date were not included in the accompanying consolidated financial statements. The accounting required assets purchased and liabilities assumed to be recorded at their respective estimated fair values at the date of acquisition.
Pending Acquisition:
Advantage Community Bancshares, Inc. (“Advantage”): On March 2, 2020, Nicolet entered into a definitive merger agreement with Advantage pursuant to which Advantage will merge with and into Nicolet. As of June 30, 2020, Nicolet has received all necessary regulatory approvals, as well as approval from Advantage shareholders. The merger is expected to close August 21, 2020, subject to the closing conditions. Advantage's four branches in Dorcester, Edgar, Mosinee, and Wausau will open as Nicolet branches on August 24, 2020. Due to the small size of the transaction, terms of the all-cash deal were not disclosed. At
10


June 30, 2020, Advantage had total assets of $160 million, loans of $89 million, deposits of $135 million, and equity of $21 million.

Terminated Acquisition:
Commerce Financial Holdings, Inc. (“Commerce”): On February 17, 2020, Nicolet entered into a definitive merger agreement (“Merger Agreement”) with Commerce Financial Holdings, Inc. (“Commerce”) pursuant to which Nicolet would acquire Commerce and its wholly-owned banking subsidiary, Commerce State Bank. On May 18, 2020, Nicolet and Commerce announced a mutual agreement to terminate their Merger Agreement. Nicolet paid Commerce $0.5 million and surrendered its $0.1 million of Commerce common stock.

Note 3 – Earnings per Common Share
Basic earnings per common share are calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share are calculated by dividing net income available to common shareholders by the weighted average number of shares adjusted for the dilutive effect of common stock awards (outstanding stock options and unvested restricted stock), if any. Presented below are the calculations for basic and diluted earnings per common share.
Three Months Ended June 30, Six Months Ended June 30,
(In thousands, except per share data) 2020 2019 2020 2019
Net income attributable to Nicolet Bankshares, Inc. $ 13,478    $ 18,549    $ 24,033    $ 28,816   
Weighted average common shares outstanding 10,417    9,374    10,467    9,418   
Effect of dilutive common stock awards 103    318    192    293   
Diluted weighted average common shares outstanding 10,520    9,692    10,659    9,711   
Basic earnings per common share* $ 1.29    $ 1.98    $ 2.30    $ 3.06   
Diluted earnings per common share* $ 1.28    $ 1.91    $ 2.25    $ 2.97   
*Cumulative quarterly per share performance may not equal annual per share totals due to the effects of the amount and timing of capital increases. When computing earnings per share for an interim period, the denominator is based on the weighted average shares outstanding during the interim period, and not on an annualized weighted average basis. Accordingly, the sum of the earnings per share data for the quarters will not necessarily equal the year to date earnings per share data.
For the three and six months ended June 30, 2020, options to purchase approximately 0.2 million and 0.1 million shares, respectively, are excluded from the calculation of diluted earnings per common share as the effect of their exercise would have been anti-dilutive. For both the three and six months ended June 30, 2019, options to purchase less than 0.1 million shares are excluded from the calculation of diluted earnings per common share as the effect of their exercise would have been anti-dilutive.

Note 4 – Stock-Based Compensation
The Company may grant stock options and restricted stock under its stock-based compensation plans to certain officers, employees and directors. These plans are administered by a committee of the Board of Directors, and at June 30, 2020, approximately 1.4 million shares were available for grant under these stock-based compensation plans.
A Black-Scholes model is utilized to estimate the fair value of stock option grants, while the market price of the Company’s stock at the date of grant is used to estimate the fair value of restricted stock awards. The weighted average assumptions used in the Black-Scholes model for valuing stock option grants were as follows.
Six Months Ended June 30,
2020 2019
Dividend yield —  % —  %
Expected volatility 25  % 25  %
Risk-free interest rate 1.67  % 2.37  %
Expected average life 7 years 7 years
Weighted average per share fair value of options $ 21.83    $ 19.23   
11


A summary of the Company’s stock option activity is summarized below.
Stock Options Option Shares
Outstanding
Weighted
Average
Exercise Price
Weighted Average
Remaining
Life (Years)
Aggregate
Intrinsic Value
(in thousands)
Outstanding - December 31, 2019 1,443,733    $ 48.75   
Granted 39,500    71.89   
Exercise of stock options * (43,552)   23.07   
Forfeited —    —   
Outstanding - June 30, 2020 1,439,681    $ 50.16    7.1 $ 10,601   
Exercisable - June 30, 2020 726,931    $ 44.59    6.4 $ 7,527   
* The terms of the stock option agreements permit having a number of shares of stock withheld, the fair market value of which as of the date of exercise is sufficient to satisfy the exercise price and/or tax withholding requirements. For the six months ended June 30, 2020, 17,699 such shares were surrendered to the Company.
Intrinsic value represents the amount by which the fair market value of the underlying stock exceeds the exercise price of the stock options. The intrinsic value of options exercised for the six months ended June 30, 2020 and 2019 was approximately $1.9 million and $5.0 million, respectively.
A summary of the Company’s restricted stock activity is summarized below.
Restricted Stock Weighted Average Grant
Date Fair Value
Restricted Shares
Outstanding
Outstanding - December 31, 2019 $ 44.94    22,521   
Granted 55.52    10,450   
Vested * 43.66    (13,615)  
Forfeited —    —   
Outstanding - June 30, 2020 $ 51.55    19,356   
* The terms of the restricted stock agreements permit the surrender of shares to the Company upon vesting in order to satisfy applicable tax withholding requirements at the minimum statutory withholding rate, and accordingly, 1,407 shares were surrendered during the six months ended June 30, 2020.
The Company recognized approximately $2.6 million and $2.2 million of stock-based compensation expense (included in personnel on the consolidated statements of income) for the six months ended June 30, 2020 and 2019, respectively, associated with its common stock awards granted to officers and employees. In addition, during first half 2020, the Company recognized approximately $0.4 million of director expense (included in other expense on the consolidated statements of income) for a total restricted stock grant of 7,950 shares with immediate vesting to directors, while during first half 2019, the Company recognized approximately $0.3 million of director expense for a total restricted stock grant of 4,257 shares with immediate vesting to directors, representing the annual stock retainer fee paid to external board members. As of June 30, 2020, there was approximately $11.6 million of unrecognized compensation cost related to equity award grants. The cost is expected to be recognized over the remaining vesting period of approximately three years. The Company recognized a tax benefit of approximately $0.3 million and $0.9 million for the six months ended June 30, 2020 and 2019, respectively, for the tax impact of stock option exercises and vesting of restricted stock.

Note 5 – Securities Available for Sale
Amortized cost and fair value of securities available for sale are summarized as follows.
June 30, 2020
(in thousands) Amortized Cost Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair Value Fair Value as % of Total
U.S. government agency securities $ 63,512    $ 338    $ —    $ 63,850    12  %
State, county and municipals 162,239    4,261      166,498    33  %
Mortgage-backed securities 188,819    8,087    10    196,896    39  %
Corporate debt securities 78,036    5,529    —    83,565    16  %
Total
$ 492,606    $ 18,215    $ 12    $ 510,809    100  %
12


December 31, 2019
(in thousands) Amortized Cost Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair Value Fair Value as % of Total
U.S. government agency securities $ 16,516    $   $ 60    $ 16,460    %
State, county and municipals 155,501    1,049    157    156,393    35  %
Mortgage-backed securities 193,223    2,492    697    195,018    43  %
Corporate debt securities 78,009    3,422    —    81,431    18  %
Total
$ 443,249    $ 6,967    $ 914    $ 449,302    100  %
All mortgage-backed securities included in the table above were issued by U.S. government agencies and corporations. Securities AFS with a fair value of $156 million and $166 million as of June 30, 2020 and December 31, 2019, respectively, were pledged as collateral on public deposits and for other purposes as required or permitted by law. Accrued interest on securities AFS totaled $2.1 million and $2.2 million at June 30, 2020 and December 31, 2019, respectively, and is included in accrued interest receivable and other assets on the consolidated balance sheets.

The following table presents gross unrealized losses and the related estimated fair value of securities AFS for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position.
June 30, 2020
Less than 12 months 12 months or more Total
($ in thousands) Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Number of
Securities
State, county and municipals $ 882    $   $ —    $ —    $ 882    $    
Mortgage-backed securities 1,329      762      2,091    10    23   
Total
$ 2,211    $   $ 762    $   $ 2,973    $ 12    25   
December 31, 2019
Less than 12 months 12 months or more Total
($ in thousands) Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Number of
Securities
U.S. government agency securities $ 1,035    $   $ 11,091    $ 58    $ 12,126    $ 60     
State, county and municipals 22,451    132    7,605    25    30,056    157    56   
Mortgage-backed securities 49,626    245    47,271    452    96,897    697    150   
Total
$ 73,112    $ 379    $ 65,967    $ 535    $ 139,079    $ 914    212   
The Company evaluates securities AFS in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. In making this evaluation, management considers the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value.
As of June 30, 2020, no allowance for credit losses on securities AFS was recognized. 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. During 2019, there were no other-than-temporary impairments charged to earnings.
13


The amortized cost and fair value of securities AFS by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties; as this is particularly inherent in mortgage-backed securities, these securities are not included in the maturity categories below.
June 30, 2020
(in thousands) Amortized Cost Fair Value
Due in less than one year $ 28,148    $ 28,294   
Due in one year through five years 217,289    224,722   
Due after five years through ten years 42,898    44,561   
Due after ten years 15,452    16,336   
303,787    313,913   
Mortgage-backed securities 188,819    196,896   
Securities AFS $ 492,606    $ 510,809   
Proceeds and realized gains / losses from the sale of securities AFS were as follows.
Six Months Ended June 30,
(in thousands) 2020 2019
Gross gains $ 164    $ 152   
Gross losses —    (120)  
Gains (losses) on sales of securities AFS, net
$ 164    $ 32   
Proceeds from sales of securities AFS $ 9,232    $ 13,240   

Note 6 – Loans, Allowance for Credit Losses - Loans, and Credit Quality
The loan composition is summarized as follows.
June 30, 2020 December 31, 2019
(in thousands) Amount % of
Total
Amount % of
Total
Commercial & industrial $ 729,264    26  % $ 806,189    31  %
Paycheck Protection Program (“PPP”) loans 329,157    12    —    —   
Owner-occupied commercial real estate (“CRE”) 495,722    17    496,372    19   
Agricultural 99,020      95,450     
CRE investment 447,900    16    443,218    17   
Construction & land development 107,277      92,970     
Residential construction 51,332      54,403     
Residential first mortgage 417,694    15    432,167    17   
Residential junior mortgage 114,323      122,771     
Retail & other 29,812      30,211     
Loans
2,821,501    100  % 2,573,751    100  %
Less allowance for credit losses - Loans (“ACL-Loans”) 29,130    13,972   
Loans, net
$ 2,792,371    $ 2,559,779   
Allowance for credit losses - Loans to loans 1.03  % 0.54  %
Accrued interest on loans totaled $9 million and $7 million at June 30, 2020 and December 31, 2019, respectively, and is included in accrued interest receivable and other assets on the consolidated balance sheets. See Note 1 for for the Company's accounting policy on accrued interest with respect to loans and the allowance for credit losses.
Allowance for Credit Losses-Loans:
The majority of the Company’s loans, commitments, and letters of credit have been granted to customers in the Company’s market area. Although the Company has a diversified loan portfolio, the credit risk in the loan portfolio is largely influenced by general economic conditions and trends of the counties and markets in which the debtors operate, and the resulting impact on the operations of borrowers or on the value of underlying collateral, if any.
14


A roll forward of the allowance for credit losses is summarized as follows.
Six Months Ended Year Ended
(in thousands) June 30, 2020 June 30, 2019 December 31, 2019
Beginning balance $ 13,972    $ 13,153    $ 13,153   
Adoption of CECL 8,488    —    —   
Initial PCD ACL 797    —    —   
Total impact for adoption of CECL 9,285    —    —   
Provision for credit losses 6,000    500    1,200   
Charge-offs (216)   (232)   (927)  
Recoveries 89    150    546   
Net (charge-offs) recoveries
(127)   (82)   (381)  
Ending balance $ 29,130    $ 13,571    $ 13,972   
The following table presents the balance and activity in the ACL-Loans by portfolio segment.
Six Months Ended June 30, 2020
(in thousands) Commercial
& industrial
Owner-
occupied
CRE
Agricultural CRE
investment
Construction & land
development
Residential
construction
Residential
first mortgage
Residential
junior
mortgage
Retail
& other
Total
ACL-Loans *
Beginning balance $ 5,471    $ 3,010    $