EX-99.1 3 doc2.txt EXHIBIT 99.1 QUARTERLY REPORT TO SHAREHOLDERS QUARTERLY REPORT NICOLET BANKSHARES, INC. grounded. growing. NICOLET NATIONAL BANK www.nicoletbank.com 110 S. Washington Street PO Box 23900 Green Bay, WI 54305-3900 2009 Hall Avenue Marinette, WI 54143 MARCH 31, 2003 MEMBER FDIC April 2003 Dear Shareholders: We are pleased to present our first quarter financial results. The quarter was marked by continued strong growth in assets and increasing profitability. Nicolet National Bank grew to $284 million in assets and reflected a profit of $243,000 after-tax for the quarter. Pre-tax profit was $372,000 for the first quarter of 2003. This compares to a pre-tax profit of $226,000 for the previous quarter and to a loss of $153,000 during the first quarter of 2002. Growing profitability is attributable to a number of factors. Continued growth has enabled Nicolet to drive greater revenue over our existing investment in people and delivery. Our investments in the Marinette Office and Trust Department have become profit contributors. We continue to exhibit very strong non-interest income particularly from secondary market mortgage originations. We are pleased with the results for the first quarter. The results reflect the markets acceptance of the Nicolet approach to financial services. We expect to continue to take advantage of the opportunities for profitable growth in market share. We look forward to seeing you in the Bank. Sincerely, /s/ Robert B. Atwell Robert B. Atwell President & CEO ASSETS (dollar amount in thousands) ------------------------------------------------------------- Cash and balances due from depository institutions. . . . . . . . . . . . . . 10,793 Securities .. . . . . . . . . . . . . . . . . . . . 22,503 Federal funds sold. . . . . . . . . . . . . . . . . 3,929 Loans . . . . . . . . . . . . . . . . . . . . . . . 239,766 LESS: Allowance for loan losses . . . . . . . . . 2,865 Net loans.. . . . . . . . . . . . . . . . . . . . 236,901 Premises and fixed assets . . . . . . . . . . . . . 2,409 Other assets. . . . . . . . . . . . . . . . . . . . 6,613 TOTAL ASSETS. . . . . . . . . . . . . . . . . . . . 283,148 LIABILITIES ------------------------------------------------------------- Deposits Non-interest-bearing. . . . . . . . . . . . . . . 22,992 Interest-bearing. . . . . . . . . . . . . . . . . 218,271 Total Deposits. . . . . . . . . . . . . . . . . . . 241,263 Federal funds purchased and securities sold under agreements to repurchase . . . . . . . . . . . . . 8,666 Other liabilities . . . . . . . . . . . . . . . . . 1,589 TOTAL LIABILITIES . . . . . . . . . . . . . . . . . 251,518 EQUITY CAPITAL ------------------------------------------------------------- Common Stock. . . . . . . . . . . . . . . . . . . . 29 Surplus . . . . . . . . . . . . . . . . . . . . . . 32,063 Retained earnings . . . . . . . . . . . . . . . . . (811) Accumulated other comprehensive income. . . . . . . 349 TOTAL EQUITY CAPITAL. . . . . . . . . . . . . . . . 31,630 TOTAL LIABILITIES AND CAPITAL . . . . . . . . . . . 283,148 INCOME STATEMENT (dollar amount in thousands) ------------------------------------------------------------- Interest Income . . . . . . . . . . . . . . . . . . 3,431 Interest Expense. . . . . . . . . . . . . . . . . . 1,781 Net interest Income . . . . . . . . . . . . . . . . 1,650 Provision for Loan and Lease Losses . . . . . . . . 448 Non-interest income Income from fiduciary activities . . . . . . . . 112 Service charges on deposit accounts. . . . . . . 99 Other non-interest income. . . . . . . . . . . . 459 Total non-interest income. . . . . . . . . . . . 670 Non-interest expense Salaries and employee benefits . . . . . . . . . 801 Other non-interest expense . . . . . . . . . . . 699 Total non-interest expense . . . . . . . . . . . 1,500 Income (loss) before taxes. . . . . . . . . . . . . 372 Income Taxes. . . . . . . . . . . . . . . . . . . . 129 Net Income. . . . . . . . . . . . . . . . . . . . . 243