PARENT COMPANY ONLY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2018

Condensed parent company only financial statements of Nicolet Bankshares, Inc. follow.



Balance Sheets	December 31,
(in thousands)	2018			2017
Assets
Cash and due from subsidiary	$	45,279		$	28,026
Investments	4,500			4,021
Investments in subsidiaries	384,839			379,640
Goodwill	(3,266		)	(3,266		)
Other assets	53			147
Total assets	$	431,405		$	408,568
Liabilities and Stockholders’ Equity
Junior subordinated debentures	$	30,096		$	29,616
Subordinated notes	11,957			11,921
Other liabilities	2,743			2,853
Stockholders’ equity	386,609			364,178
Total liabilities and stockholders’ equity	$	431,405		$	408,568



Statements of Income	Years Ended December 31,
(in thousands)	2018			2017			2016
Interest income	$	52		$	46		$	58
Interest expense	2,844			2,415			1,951
Net interest expense	(2,792		)	(2,369		)	(1,893		)
Dividend income from subsidiaries	40,775			32,000			35,500
Operating expense	(364		)	(369		)	(202		)
Gain (loss) on investments, net	265			1,411			(500		)
Income tax benefit	305			1,329			833
Earnings before equity in undistributed income (loss) of subsidiaries	38,189			32,002			33,738
Equity in undistributed income (loss) of subsidiaries	2,847			1,148			(15,276		)
Net income attributable to Nicolet Bankshares, Inc.	$	41,036		$	33,150		$	18,462



Statements of Cash Flows	Years Ended December 31,
(in thousands)	2018			2017			2016
Cash Flows From Operating Activities:
Net income attributable to Nicolet Bankshares, Inc.	$	41,036		$	33,150		$	18,462
Adjustments to reconcile net income to net cash provided by operating activities:
Accretion of discounts	515			501			353
(Gain) loss on investments, net	(265		)	(1,411		)	500
Change in other assets and liabilities, net	(25		)	(1,384		)	395
Equity in undistributed (income) loss of subsidiaries, net of dividends	(2,847		)	(1,148		)	15,276
Net cash provided by operating activities	38,414			29,708			34,986
Cash Flows from Investing Activities:
Proceeds from sale of investments	708			317			565
Purchases of investments	(920		)	—			—
Net cash paid in business combinations	—			(19,287		)	(608		)
Net cash used in investing activities	(212		)	(18,970		)	(43		)
Cash Flows From Financing Activities:
Purchase and retirement of common stock	(22,749		)	(15,007		)	(5,201		)
Proceeds from issuance of common stock, net	1,800			4,030			1,900
Capitalized issuance costs, net	—			—			(260		)
Repayment of long-term borrowings	—			—			(3,916		)
Redemption of preferred stock	—			—			(12,200		)
Cash dividends paid on preferred stock	—			—			(633		)
Net cash used in financing activities	(20,949		)	(10,977		)	(20,310		)
Net increase (decrease) in cash and due from subsidiary	17,253			(239		)	14,633
Beginning cash and due from subsidiary	28,026			28,265			13,632
Ending cash and due from subsidiary	$	45,279		$	28,026		$	28,265