Nicolet National banks on customer service
By Elaine Kauh - Green Bay Press Gazette

Posted May 08, 2002
ekauh@greenbaypressgazette.com
DE PERE — Nicolet National Bank may be young, but it can go head-to-head with its bigger, older competitors, bank leaders told shareholders Tuesday during their second annual meeting.

The Green Bay bank, which opened Nov. 1, 2000, has gained customers not just competing on price, but on customer service, said Robert Atwell, president, chairman and chief executive officer.

"We had a tremendous year," he said before addressing about 60 shareholders at St. Norbert College.

Nicolet grew more quickly than expected, with $91 million in assets in early 2001.

It had $181.3 million at the end of the first quarter this year.

The bank posted a loss of $95,000 in the first quarter because of costs in starting up trust and investment management services in its Marinette office, which opened last year.

Compared to other startup banks around the country, Nicolet ranks high in performance and growth, said Jacqui Engebos, vice president and chief financial officer.

"Our growth has significantly outpaced our original projections," she said.

Falling interest rates hurt earnings last year, especially in the second half, Atwell said. Prime rate reductions since Sept. 11 "did cut into our net interest margin quite a bit," he said.

Interest income is the bank's largest contributor to earnings, and the bank's main business is commercial loans, with a large amount of floating rate loans.

Interest rate declines made it difficult to make money on interest, especially when its fixed-rate deposits remained steady.

The bank had planned to hold a vote on forming a holding company called Nicolet Bankshares Inc. on Tuesday, but postponed it until June 4 to comply with notice requirements.

The change will take effect in the second quarter.

Atwell said the holding company was part of the plan for the Nicolet's 2000 startup, but postponing its creation allowed the bank to open two months earlier.

The holding company gives the bank flexibility for future growth, although there are no immediate plans to expand, Atwell said.