Nicolet's growth exceeds expectations
By Warren Bluhm - Green Bay News Chronicle - 5/8/02

DE PERE - The growth of Nicolet National Bank has been faster than the most optimistic projections its founders made when they opened in November 2000.

"Our growth has significantly outpaced our original projections," vice president and chief financial officer Jacqui Engebos said Tuesday at the bank's second annual shareholders meeting.

The company hoped to have $94 million in total assets after two years; it reached $181 million by March 31. The plan was to generate $73 million in loans within two years; the bank had generated $147 million in loan business by March 31.

"We essentially doubled our two-year projection on loans in 17 months," Engebos said.

Robert Atwell, president and chief executive officer, told the stockholders that the 8,000 banks in the United States appear to be splitting into two groups - "large banks and all others" - but the very largest banks are losing their market share as customers turn more and more to smaller community banks.

He related a recent panel discussion in Chicago, where he and three other bankers spoke to a group of 70 college students who are moving into financial careers. The representative from a large national bank told the students that the future of his bank "did not lie in lending money," Atwell said.

"The attitude of these large banks seems to be, 'We're not that interested in lending you money, but can we interest you in some fee-based services today?'" he said. "Who needs a bank that does not see the extension of credit as essential to their economic and social function?"

Atwell said Nicolet's opportunities to serve small businesses will grow as larger banks become more centralized.

"There is no longer any bank in Green Bay that can loan more than $5 million without the specific approval of underwriters in another city," he said.

As Nicolet grows and is able to raise the limits on how much it can loan, Atwell predicted that within a few years it will have the largest local lending capacity in the market.

After becoming one of the only new banks in the country to post an after-tax net profit in 2001, Nicolet National recorded a modest $95,000 loss in net income for the first quarter of 2002.

Atwell said that figure reflects the startup costs of the bank's new Marinette office and its Trust and Investment Management department.