Nicolet Bank and TARP

Since the announcement of our participation in the Treasury’s Capital Purchase Program, we have received numerous questions regarding our involvement. The next few blog entries will give you some insight into our thinking.

A few facts before we begin. Nicolet Bankshares, Inc. is the holding company of Nicolet National Bank. On December 23, we received $14.96 million from the Capital Purchase Program. That money was put into Nicolet Bankshares, Inc.

The question that we have received most often is, “Is TARP a bailout”? I can’t speak for the whole industry, but in our case, it is definitely not a bailout. We were adequately capitalized before the TARP funds. We raised $9.5MM from private investors in our community at the same time we applied for the TARP. We are profitable. The TARP money is not replacing the capital we wrote off from a bunch of bad decisions we made in the past. We have not made that many bad decisions and we pay for our own mistakes.