- Net income of $24 million,
compared to $16 million in prior
quarter and $18 million in first
quarter 2021
- Earnings per diluted common share of $1.70, compared to $1.25 in prior quarter and $1.75 in first quarter 2021
- Return on average assets of 1.30% for first quarter
2022
- Return on average common equity and return on average
tangible common equity of 11.38% and 18.75%, respectively, for
first quarter 2022
- Returned capital to shareholders with $54 million in stock repurchases during the
quarter
- Agreement to acquire Charter Bankshares, Inc. announced
March 30
GREEN
BAY, Wis., April 19, 2022 /PRNewswire/ -- Nicolet
Bankshares, Inc. (NASDAQ: NCBS) ("Nicolet") announced first quarter
2022 net income of $24 million and
earnings per diluted common share of $1.70, compared to $16
million and $1.25 for fourth
quarter 2021, and $18 million and
$1.75 for first quarter 2021,
respectively. Annualized quarterly return on average assets
was 1.30%, 0.96% and 1.64%, for first quarter 2022, fourth quarter
2021 and first quarter 2021, respectively.
On March 29, 2022, we entered into
a definitive merger agreement with Charter Bankshares, Inc.
("Charter") pursuant to which Charter will merge with and into
Nicolet. Nicolet expects to issue approximately 1.26 million
shares of Nicolet common stock and $38.8
million in cash for the acquisition of Charter. At
December 31, 2021, Charter had total
assets of $1.1 billion. The
merger is expected to close in the third quarter of 2022, subject
to customary closing conditions, including approval by
regulators.
"The first quarter numbers reflect our focus on relationships
rather than transactions and all revenue lines working together to
serve the customer. We told our team that coming together as one
bank was important in our two transactions in 2021, but working
together is what will produce the results," said Mike Daniels, President and CEO of Nicolet. "Our
loan growth was solid, and our prospects and pipeline look
strong. Asset quality remains outstanding, and our revenue
lines in all areas of the bank; commercial, retail, wealth, and
agriculture are seeing that a relentless focus on serving our
customers and communities continues to create wins."
"I would be remiss if I didn't give all our support areas a
quick public thank you. We have grown 60% in the last six
months, and these teams have really stepped up to ensure a smooth
transition. I am constantly impressed with the attitude and
effort of these teams. I am optimistic about another smooth
conversion and integration of Charter, and that we will keep our
laser focus on running a great community bank," CEO Daniels
added.
Executive Chairman of Nicolet Bob
Atwell commented, "The market reacted quite favorably to our
announced Charter transaction despite the recent retreat in bank
stock prices. Charter's historic performance, overlaid with
additional Nicolet products and services, has us excited about this
western expansion."
Evaluation of financial performance and certain balance sheet
line items was impacted by the timing and size of Nicolet's 2021
acquisitions, Mackinac Financial Corporation ("Mackinac") on
September 3, 2021 and County Bancorp,
Inc. ("County") on December 3, 2021.
Certain income statement results, average balances and related
ratios for 2021 include partial contributions from Mackinac and
County, each from the respective acquisition date. At
acquisition, Mackinac added assets of $1.5
billion, loans of $0.9
billion, and deposits of $1.4
billion, while at acquisition County added assets of
$1.4 billion, loans of $1.0 billion, and deposits of $1.0 billion.
Balance Sheet Review
At March 31, 2022, period end assets were $7.3
billion, a decrease of $0.4 billion
(5%) from December 31, 2021, including $0.2 billion of assets related to the sale of the
Birmingham branch in January 2022, as
well as lower cash and cash equivalents from the decline in
deposits. Total loans increased $61 million from
December 31, 2021, with continued reductions in PPP loans from
loan forgiveness (down $16 million)
more than offset by growth in the rest of the loan portfolio (up
$77 million or 6.8% annualized,
primarily in agricultural and commercial and industrial
loans). Total deposits of $6.2 billion at March 31, 2022, decreased $0.2 billion from December 31, 2021, due to
the repricing of acquired deposits to current market rates.
Total capital was $836 million at March
31, 2022, a decrease of $56 million since
December 31, 2021, mostly due to stock repurchase activity and
unfavorable changes in the fair value of available for sale
securities, partly offset by current quarter earnings. For the
quarter ended March 31, 2022, Nicolet
repurchased 593,713 shares of its common stock at a total cost of
$54.4 million, or an average per
share cost of $91.66.
Asset Quality
Nonperforming assets were $49
million and represented 0.68% of total assets at
March 31, 2022, compared to
$56 million or 0.73% at
December 31, 2021. The allowance for credit losses-loans
was $50 million and represented 1.07%
of total loans at March 31, 2022,
unchanged from December 31, 2021, given solid asset quality
trends which offset the loan growth experienced along with
negligible net charge-offs.
Income Statement Review -
Quarter
Net income for first quarter 2022 was $24
million, compared to net income of $16 million for fourth quarter 2021.
Net interest income was $54
million for first quarter 2022, up slightly ($0.2 million) from fourth quarter 2021, as the
impact of higher average balances was substantially offset by the
continued pressure of a low interest rate environment, as well as
two fewer days in the quarter. Average interest-earning
assets of $6.7 billion were up
$0.8 billion from fourth quarter
2021, largely due to the timing of the County acquisition.
Average loans were up $736 million (including both organic
growth and the County acquisition) and average investment
securities were up $306 million (reflecting the strategic
re-investment of approximately $0.5
billion excess cash liquidity into U.S. Treasury securities
of varying yields and durations during fourth quarter, as well as
the County acquisition), partly offset by lower balances in other
interest-earning assets (down $255 million, mostly
cash). Average interest-bearing liabilities of $4.7 billion increased $678 million from
fourth quarter 2021, also largely due to the timing of the County
acquisition, with average interest-bearing deposits up
$635 million and wholesale funding up
$42 million.
The net interest margin for first quarter 2022 was 3.23%, down
34bps from 3.57% for fourth quarter 2021. The yield on
interest-earning assets decreased 37bps (to 3.48%) due to several
factors including merger-related interest classification changes,
the maturity or paydown of higher rate loans, and competitive
pricing pressures on new and renewed loans from the then low
interest rate environment. The cost of funds decreased 5bps
(to 0.35%) for first quarter 2022, attributable mainly to the lower
cost of deposits.
Noninterest income was $16 million for first quarter 2022,
down slightly (1%) compared to fourth quarter 2021. Excluding
net asset gains, noninterest income was $15 million, down
$1 million from fourth quarter 2021. The net asset gains
for each quarter were comprised primarily of gains on sales of
other real estate owned (mostly closed bank branch locations) and
market gains on equity investments. Net mortgage income of
$3 million was down $1 million from fourth quarter 2021
on slowing mortgage activity. Trust services fee income and
brokerage fee income combined increased $0.4 million (8%) over fourth quarter
2021.
Noninterest expense of $38 million decreased
$2 million (5%) from fourth quarter 2021. Personnel expense
decreased $0.3 million (1%) from
fourth quarter 2021, while non-personnel expenses decreased
$1.6 million (9%). The
decrease in non-personnel expenses was largely due to $2.1 million lower merger-related expense,
partly offset by $0.3 million
higher intangible amortization related to the 2021
acquisitions.
About Nicolet Bankshares,
Inc.
Nicolet Bankshares, Inc. is the bank holding company of
Nicolet National Bank, a growing,
full-service, community bank providing services ranging from
commercial, agricultural and consumer banking to wealth management
and retirement plan services. Founded in Green Bay in 2000, Nicolet National Bank operates branches in
Northeast and Central Wisconsin,
Northern Michigan and the upper
peninsula of Michigan. More
information can be found at www.nicoletbank.com.
Use of Non-GAAP Financial
Measures
This communication contains non-GAAP financial measures, such as
non-GAAP net income, non-GAAP earnings per diluted common
share, tangible book value per common share, return on average
tangible common equity, and tangible common equity to tangible
assets, where management believes such measures to be helpful to
management, investors and others in understanding Nicolet's results
of operations or financial position. Where non-GAAP financial
measures are used, the comparable GAAP financial measures, as well
as the reconciliation of the non-GAAP measures to the GAAP
financial measures, are provided. See "Reconciliation of
Non-GAAP Financial Measures (Unaudited)" below. The non-GAAP net
income measure and related reconciliation provide information
useful to investors in understanding the operating performance and
trends of Nicolet and also aid investors in comparing Nicolet's
financial performance to the financial performance of peer
banks. Management considers non-GAAP financial ratios to be
critical metrics with which to analyze and evaluate financial
condition and capital strengths. While non-GAAP financial measures
are frequently used by stakeholders in the evaluation of a
corporation, they have limitations as analytical tools and should
not be considered in isolation or as a substitute for analyses of
results as reported under GAAP.
Forward Looking Statements "Safe
Harbor" Statement Under the Private Securities Litigation Reform
Act of 1995
Certain statements contained in this communication, which are
not statements of historical fact, constitute forward-looking
statements within the meaning of the federal securities law. Such
statements include, but are not limited to, statements about
Nicolet's business plans, objectives, expectations and intentions,
including without limitation Nicolet's prospects and pipelines
looking strong and business focus moving forward, as well as
certain plans, expectations, goals, projections and benefits
relating to the proposed merger between Nicolet and Charter, all of
which are subject to numerous assumptions, risks and uncertainties.
Words or phrases such as "anticipate," "believe," "aim," "can,"
"conclude," "continue," "could," "estimate," "expect," "foresee,"
"goal," "intend," "may," "might," "outlook," "possible," "plan,"
"predict," "project," "potential," "seek," "should," "target,"
"will," "will likely," "would," or the negative of these terms or
other comparable terminology, as well as similar expressions, are
intended to identify forward-looking statements but are not the
exclusive means of identifying such statements.
Forward-looking statements are not historical facts but instead
express only management's beliefs regarding future results or
events, many of which, by their nature, are inherently uncertain
and outside of management's control. It is possible that actual
results and outcomes may differ, possibly materially, from the
anticipated results or outcomes indicated in these forward-looking
statements. In addition to factors disclosed in reports filed by
Nicolet with the SEC, risks and uncertainties, including but not
limited to risks and uncertainties for Nicolet with respect to its
proposed merger with Charter, that may cause actual results or
outcomes to differ materially from those anticipated include, but
are not limited to: (1) the possibility that the proposed merger
will not be completed due to the failure to satisfy one or more of
the conditions of the merger, including the approvals of regulators
or Charter shareholders; (2) the possibility that any of the
anticipated benefits of the proposed merger will not be realized or
will not be realized within the expected time period; (3) the risk
that integration of Charter's operations with those of Nicolet will
be materially delayed or will be more costly or difficult than
expected; (4) the parties' inability to meet expectations regarding
the timing of the proposed merger; (5) changes to tax legislation
and their potential effects on the accounting for the proposed
merger; (6) diversion of management's attention from ongoing
business operations and opportunities due to the proposed merger;
(7) the challenges of integrating and retaining key employees; (8)
the effect of the announcement of the proposed merger on Nicolet's,
Charter's or the combined company's respective customer and
employee relationships and operating results; (9) the possibility
that the proposed merger may be more expensive to complete than
anticipated, including as a result of unexpected factors or events;
(10) dilution caused by Nicolet's issuance of additional shares of
Nicolet common stock in connection with the proposed merger; (11)
the magnitude and duration of the COVID pandemic and its impact on
the global economy and financial market conditions and Nicolet's
business, results of operations and financial condition; (12)
changes in consumer demand for financial services; (13) general
competitive, economic, political and market conditions and
fluctuations; and additional risks that are discussed in Nicolet's
SEC filings. Please refer to Nicolet's 2021 Annual Report on
Form 10-K, as well as its other filings with the SEC, for a more
detailed discussion of risks, uncertainties and factors that could
cause actual results to differ from those discussed in the
forward-looking statements.
The COVID pandemic is adversely affecting us, our customers,
counterparties, employees, and third-party service providers, and
the ultimate extent of the impacts on our business, financial
position, results of operations, liquidity, and prospects is
uncertain. Continued deterioration in general business and economic
conditions or turbulence in domestic financial markets could
adversely affect Nicolet's revenues and the values of its assets
and liabilities, lead to a tightening of credit, and increase stock
price volatility. In addition, the COVID pandemic may result in
changes to statutes, regulations, or regulatory policies or
practices that could affect Nicolet in substantial and
unpredictable ways.
All forward-looking statements included in this communication
are made as of the date hereof and are based on information
available to management at that time. Except as required by law,
Nicolet does not assume any obligation to update any
forward-looking statement to reflect events or circumstances that
occur after the date the forward-looking statements were made.
Nicolet Bankshares,
Inc.
|
|
|
|
|
|
|
|
|
|
|
Consolidated Balance
Sheets (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except
share data)
|
|
03/31/2022
|
|
12/31/2021
|
|
09/30/2021
|
|
06/30/2021
|
|
03/31/2021
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
183,705
|
|
$
209,349
|
|
$
217,608
|
|
$
77,634
|
|
$
61,295
|
Interest-earning
deposits
|
|
212,218
|
|
385,943
|
|
1,132,997
|
|
714,772
|
|
674,559
|
Cash and cash equivalents
|
|
395,923
|
|
595,292
|
|
1,350,605
|
|
792,406
|
|
735,854
|
Certificates of deposit
in other banks
|
|
19,692
|
|
21,920
|
|
24,079
|
|
23,387
|
|
27,296
|
Securities available
for sale, at fair value
|
|
852,331
|
|
921,661
|
|
715,942
|
|
562,028
|
|
558,229
|
Securities held to
maturity, at amortized cost
|
|
684,991
|
|
651,803
|
|
49,063
|
|
—
|
|
—
|
Other
investments
|
|
54,257
|
|
44,008
|
|
38,602
|
|
33,440
|
|
28,248
|
Loans held for
sale
|
|
9,764
|
|
6,447
|
|
16,784
|
|
11,235
|
|
16,883
|
Other assets held for
sale
|
|
—
|
|
199,833
|
|
177,627
|
|
—
|
|
—
|
Loans
|
|
4,683,315
|
|
4,621,836
|
|
3,533,198
|
|
2,820,331
|
|
2,846,351
|
Allowance for credit
losses - loans
|
|
(49,906)
|
|
(49,672)
|
|
(38,399)
|
|
(32,561)
|
|
(32,626)
|
Loans, net
|
|
4,633,409
|
|
4,572,164
|
|
3,494,799
|
|
2,787,770
|
|
2,813,725
|
Premises and equipment,
net
|
|
94,275
|
|
94,566
|
|
83,513
|
|
61,618
|
|
59,413
|
Bank owned life
insurance ("BOLI")
|
|
135,292
|
|
134,476
|
|
100,690
|
|
84,347
|
|
83,788
|
Goodwill and other
intangibles, net
|
|
338,068
|
|
339,492
|
|
269,954
|
|
173,711
|
|
174,501
|
Accrued interest
receivable and other assets
|
|
102,210
|
|
113,375
|
|
86,162
|
|
57,405
|
|
45,867
|
Total assets
|
|
$
7,320,212
|
|
$
7,695,037
|
|
$
6,407,820
|
|
$
4,587,347
|
|
$
4,543,804
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
$
1,912,995
|
|
$
1,975,705
|
|
$
1,852,119
|
|
$
1,324,994
|
|
$
1,216,477
|
Interest-bearing
deposits
|
|
4,318,125
|
|
4,490,211
|
|
3,576,655
|
|
2,614,028
|
|
2,684,117
|
Total deposits
|
|
6,231,120
|
|
6,465,916
|
|
5,428,774
|
|
3,939,022
|
|
3,900,594
|
Short-term
borrowings
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Long-term
borrowings
|
|
206,946
|
|
216,915
|
|
144,233
|
|
45,108
|
|
43,988
|
Other liabilities held
for sale
|
|
—
|
|
51,586
|
|
47,496
|
|
—
|
|
—
|
Accrued interest
payable and other liabilities
|
|
45,836
|
|
68,729
|
|
58,039
|
|
43,822
|
|
49,176
|
Total liabilities
|
|
6,483,902
|
|
6,803,146
|
|
5,678,542
|
|
4,027,952
|
|
3,993,758
|
Stockholders'
Equity:
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
135
|
|
140
|
|
120
|
|
98
|
|
100
|
Additional paid-in
capital
|
|
524,478
|
|
575,045
|
|
425,367
|
|
261,096
|
|
271,388
|
Retained
earnings
|
|
337,768
|
|
313,604
|
|
297,299
|
|
289,475
|
|
271,191
|
Accumulated other
comprehensive income (loss)
|
|
(26,071)
|
|
3,102
|
|
6,492
|
|
8,726
|
|
7,367
|
Total Nicolet stockholders'
equity
|
|
836,310
|
|
891,891
|
|
729,278
|
|
559,395
|
|
550,046
|
Total liabilities
and stockholders' equity
|
|
$
7,320,212
|
|
$
7,695,037
|
|
$
6,407,820
|
|
$
4,587,347
|
|
$
4,543,804
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding
|
|
13,456,741
|
|
13,994,079
|
|
11,952,438
|
|
9,843,141
|
|
9,987,897
|
Nicolet Bankshares,
Inc.
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Income (Unaudited)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In thousands, except
per share data)
|
|
03/31/2022
|
|
12/31/2021
|
|
09/30/2021
|
|
06/30/2021
|
|
03/31/2021
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
Loans, including loan
fees
|
|
$
51,299
|
|
$
52,292
|
|
$
35,294
|
|
$
35,111
|
|
$
33,862
|
Taxable investment
securities
|
|
5,127
|
|
3,999
|
|
2,061
|
|
2,060
|
|
1,814
|
Tax-exempt investment
securities
|
|
675
|
|
575
|
|
517
|
|
520
|
|
545
|
Other interest
income
|
|
817
|
|
769
|
|
869
|
|
616
|
|
655
|
Total interest income
|
|
57,918
|
|
57,635
|
|
38,741
|
|
38,307
|
|
36,876
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
2,192
|
|
2,649
|
|
2,444
|
|
2,433
|
|
2,922
|
Short-term
borrowings
|
|
—
|
|
1
|
|
—
|
|
—
|
|
—
|
Long-term
borrowings
|
|
1,931
|
|
1,426
|
|
1,113
|
|
303
|
|
313
|
Total interest expense
|
|
4,123
|
|
4,076
|
|
3,557
|
|
2,736
|
|
3,235
|
Net interest
income
|
|
53,795
|
|
53,559
|
|
35,184
|
|
35,571
|
|
33,641
|
Provision for credit
losses
|
|
300
|
|
8,400
|
|
6,000
|
|
—
|
|
500
|
Net interest income
after provision for credit losses
|
|
53,495
|
|
45,159
|
|
29,184
|
|
35,571
|
|
33,141
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
Trust services fee
income
|
|
2,011
|
|
2,050
|
|
2,043
|
|
1,906
|
|
1,775
|
Brokerage fee
income
|
|
3,688
|
|
3,205
|
|
3,154
|
|
2,991
|
|
2,793
|
Mortgage income,
net
|
|
3,253
|
|
4,518
|
|
4,808
|
|
5,599
|
|
7,230
|
Service charges on
deposit accounts
|
|
1,477
|
|
1,482
|
|
1,314
|
|
1,136
|
|
1,091
|
Card interchange
income
|
|
2,581
|
|
2,671
|
|
2,299
|
|
2,266
|
|
1,927
|
BOLI income
|
|
933
|
|
722
|
|
572
|
|
559
|
|
527
|
Asset gains (losses),
net
|
|
1,313
|
|
465
|
|
(1,187)
|
|
4,192
|
|
711
|
Other noninterest
income
|
|
687
|
|
951
|
|
993
|
|
1,529
|
|
1,072
|
Total noninterest
income
|
|
15,943
|
|
16,064
|
|
13,996
|
|
20,178
|
|
17,126
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
Personnel
expense
|
|
21,191
|
|
21,491
|
|
16,927
|
|
17,084
|
|
15,116
|
Occupancy, equipment
and office
|
|
6,944
|
|
7,119
|
|
5,749
|
|
4,053
|
|
4,137
|
Business development
and marketing
|
|
1,831
|
|
1,550
|
|
1,654
|
|
1,210
|
|
989
|
Data
processing
|
|
3,387
|
|
3,582
|
|
2,939
|
|
2,811
|
|
2,658
|
Intangibles
amortization
|
|
1,424
|
|
1,094
|
|
758
|
|
790
|
|
852
|
FDIC
assessments
|
|
480
|
|
480
|
|
480
|
|
480
|
|
595
|
Merger-related
expense
|
|
98
|
|
2,202
|
|
2,793
|
|
656
|
|
—
|
Other noninterest
expense
|
|
2,195
|
|
1,890
|
|
1,761
|
|
3,663
|
|
1,734
|
Total noninterest
expense
|
|
37,550
|
|
39,408
|
|
33,061
|
|
30,747
|
|
26,081
|
Income before income tax expense
|
|
31,888
|
|
21,815
|
|
10,119
|
|
25,002
|
|
24,186
|
Income tax
expense
|
|
7,724
|
|
5,510
|
|
2,295
|
|
6,718
|
|
5,947
|
Net income
|
|
$
24,164
|
|
$
16,305
|
|
$
7,824
|
|
$
18,284
|
|
$
18,239
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
1.77
|
|
$
1.29
|
|
$
0.75
|
|
$
1.85
|
|
$
1.82
|
Diluted
|
|
$
1.70
|
|
$
1.25
|
|
$
0.73
|
|
$
1.77
|
|
$
1.75
|
Common shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average
|
|
13,649
|
|
12,626
|
|
10,392
|
|
9,902
|
|
9,998
|
Diluted weighted
average
|
|
14,215
|
|
13,049
|
|
10,776
|
|
10,326
|
|
10,403
|
Nicolet Bankshares, Inc.
|
|
|
|
|
|
|
|
|
|
|
Consolidated Financial Summary
(Unaudited)
|
|
|
|
|
|
|
|
|
At or for the Three Months
Ended
|
(In thousands, except
share & per share data)
|
|
03/31/2022
|
|
12/31/2021
|
|
9/30/2021
|
|
6/30/2021
|
|
3/31/2021
|
Selected Average Balances:
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$ 4,688,784
|
|
$ 3,952,330
|
|
$ 3,076,422
|
|
$ 2,869,105
|
|
$ 2,825,664
|
Investment
securities
|
|
1,575,624
|
|
1,269,562
|
|
611,870
|
|
537,632
|
|
528,342
|
Interest-earning
assets
|
|
6,711,191
|
|
5,923,581
|
|
4,734,768
|
|
4,109,394
|
|
4,089,603
|
Cash and cash
equivalents
|
|
568,472
|
|
839,607
|
|
1,100,153
|
|
716,873
|
|
750,075
|
Goodwill and other
intangibles, net
|
|
338,694
|
|
294,051
|
|
201,748
|
|
174,026
|
|
174,825
|
Total assets
|
|
7,519,636
|
|
6,772,363
|
|
5,246,193
|
|
4,527,839
|
|
4,514,927
|
Deposits
|
|
6,392,544
|
|
5,754,778
|
|
4,448,468
|
|
3,897,797
|
|
3,875,205
|
Interest-bearing
liabilities
|
|
4,683,915
|
|
4,006,307
|
|
3,093,031
|
|
2,684,871
|
|
2,764,232
|
Stockholders' equity
(common)
|
|
861,319
|
|
784,666
|
|
608,946
|
|
550,974
|
|
544,541
|
Selected Ratios: (1)
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share
|
|
$
62.15
|
|
$
63.73
|
|
$
61.01
|
|
$
56.83
|
|
$
55.07
|
Tangible book value per
common share (2)
|
|
$
37.03
|
|
$
39.47
|
|
$
38.43
|
|
$
39.18
|
|
$
37.60
|
Return on average
assets
|
|
1.30 %
|
|
0.96 %
|
|
0.59 %
|
|
1.62 %
|
|
1.64 %
|
Return on average
common equity
|
|
11.38
|
|
8.24
|
|
5.10
|
|
13.31
|
|
13.58
|
Return on average
tangible common equity (2)
|
|
18.75
|
|
13.19
|
|
7.62
|
|
19.46
|
|
20.01
|
Average equity to
average assets
|
|
11.45
|
|
11.59
|
|
11.61
|
|
12.17
|
|
12.06
|
Stockholders' equity to
assets
|
|
11.42
|
|
11.59
|
|
11.38
|
|
12.19
|
|
12.11
|
Tangible common equity
to tangible assets (2)
|
|
7.14
|
|
7.51
|
|
7.48
|
|
8.74
|
|
8.60
|
Net interest
margin
|
|
3.23
|
|
3.57
|
|
2.94
|
|
3.45
|
|
3.31
|
Efficiency
ratio
|
|
54.56
|
|
56.73
|
|
65.32
|
|
59.37
|
|
51.84
|
Effective tax
rate
|
|
24.22
|
|
25.26
|
|
22.68
|
|
26.87
|
|
24.59
|
Selected Asset Quality
Information:
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
39,670
|
|
$
44,154
|
|
$
16,715
|
|
$
6,932
|
|
$
8,965
|
Other real estate owned
- closed branches
|
|
9,019
|
|
10,307
|
|
2,895
|
|
2,895
|
|
3,495
|
Other real estate
owned
|
|
797
|
|
1,648
|
|
1,574
|
|
—
|
|
302
|
Nonperforming
assets
|
|
$
49,486
|
|
$
56,109
|
|
$
21,184
|
|
$
9,827
|
|
$
12,762
|
Net loan charge-offs
(recoveries)
|
|
$
66
|
|
$
(10)
|
|
$
58
|
|
$
65
|
|
$
47
|
Allowance for credit
losses-loans to loans
|
|
1.07 %
|
|
1.07 %
|
|
1.09 %
|
|
1.15 %
|
|
1.15 %
|
Net loan charge-offs to
average loans (1)
|
|
0.01
|
|
0.00
|
|
0.01
|
|
0.01
|
|
0.01
|
Nonperforming loans to
total loans
|
|
0.85
|
|
0.96
|
|
0.47
|
|
0.25
|
|
0.31
|
Nonperforming assets to
total assets
|
|
0.68
|
|
0.73
|
|
0.33
|
|
0.21
|
|
0.28
|
Stock Repurchase Information:
|
|
|
|
|
|
|
|
|
|
|
Common stock
repurchased (dollars) (3)
|
|
$
54,420
|
|
$
27,784
|
|
$
17,125
|
|
$
12,453
|
|
$
4,102
|
Common stock
repurchased (full shares) (3)
|
|
593,713
|
|
345,166
|
|
233,594
|
|
157,418
|
|
56,886
|
|
|
(1)
|
Income
statement-related ratios for partial-year periods are
annualized.
|
(2)
|
See Reconciliation of
Non-GAAP Financial Measures below for a reconciliation of these
financial measures.
|
(3)
|
Reflects common stock
repurchased under board of director authorizations for the common
stock repurchase program.
|
Nicolet Bankshares,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income
and Net Interest Margin Analysis (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
2022
|
|
December 31,
2021
|
|
March 31,
2021
|
|
|
|
Average
|
|
|
|
Average
|
|
Average
|
|
|
|
Average
|
|
Average
|
|
|
|
Average
|
|
(In
thousands)
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PPP loans
|
|
$ 13,503
|
|
$ 1,377
|
|
40.79
%
|
|
$ 46,694
|
|
$ 5,549
|
|
46.50
%
|
|
$
206,498
|
|
$ 3,951
|
|
7.65 %
|
|
All other
loans
|
|
4,675,281
|
|
49,957
|
|
4.27 %
|
|
3,905,636
|
|
46,770
|
|
4.70 %
|
|
2,619,166
|
|
29,934
|
|
4.57 %
|
|
Total loans (1) (2)
|
|
4,688,784
|
|
51,334
|
|
4.38 %
|
|
3,952,330
|
|
52,319
|
|
5.20 %
|
|
2,825,664
|
|
33,885
|
|
4.80 %
|
|
Investment securities
(2)
|
|
1,575,624
|
|
6,158
|
|
1.57 %
|
|
1,269,562
|
|
4,860
|
|
1.53 %
|
|
528,342
|
|
2,588
|
|
1.96 %
|
|
Other interest-earning
assets
|
|
446,783
|
|
817
|
|
0.73 %
|
|
701,689
|
|
769
|
|
0.43 %
|
|
735,597
|
|
655
|
|
0.36 %
|
|
Total interest-earning assets
|
|
6,711,191
|
|
$
58,309
|
|
3.48 %
|
|
5,923,581
|
|
$
57,948
|
|
3.85 %
|
|
4,089,603
|
|
$
37,128
|
|
3.63 %
|
|
Other assets,
net
|
|
808,445
|
|
|
|
|
|
848,782
|
|
|
|
|
|
425,324
|
|
|
|
|
|
Total assets
|
|
$
7,519,636
|
|
|
|
|
|
$
6,772,363
|
|
|
|
|
|
$
4,514,927
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing core
deposits
|
|
$
4,009,898
|
|
$ 1,637
|
|
0.17 %
|
|
$
3,456,699
|
|
$ 1,743
|
|
0.20 %
|
|
$
2,395,948
|
|
$ 1,841
|
|
0.31 %
|
|
Brokered
deposits
|
|
459,460
|
|
555
|
|
0.49 %
|
|
377,390
|
|
906
|
|
0.95 %
|
|
316,589
|
|
1,081
|
|
1.38 %
|
|
Total interest-bearing deposits
|
|
4,469,358
|
|
2,192
|
|
0.20 %
|
|
3,834,089
|
|
2,649
|
|
0.27 %
|
|
2,712,537
|
|
2,922
|
|
0.44 %
|
|
Other interest-bearing
liabilities
|
|
214,557
|
|
1,931
|
|
3.60 %
|
|
172,218
|
|
1,427
|
|
3.30 %
|
|
51,695
|
|
313
|
|
2.42 %
|
|
Total interest-bearing liabilities
|
|
4,683,915
|
|
$ 4,123
|
|
0.35 %
|
|
4,006,307
|
|
$ 4,076
|
|
0.40 %
|
|
2,764,232
|
|
$ 3,235
|
|
0.47 %
|
|
Noninterest-bearing
demand deposits
|
|
1,923,186
|
|
|
|
|
|
1,920,689
|
|
|
|
|
|
1,162,668
|
|
|
|
|
|
Other
liabilities
|
|
51,216
|
|
|
|
|
|
60,701
|
|
|
|
|
|
43,486
|
|
|
|
|
|
Stockholders'
equity
|
|
861,319
|
|
|
|
|
|
784,666
|
|
|
|
|
|
544,541
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
7,519,636
|
|
|
|
|
|
$
6,772,363
|
|
|
|
|
|
$
4,514,927
|
|
|
|
|
|
Net interest income and
rate spread
|
|
|
|
$
54,186
|
|
3.13 %
|
|
|
|
$
53,872
|
|
3.45 %
|
|
|
|
$
33,893
|
|
3.16 %
|
|
Net interest
margin
|
|
|
|
|
|
3.23 %
|
|
|
|
|
|
3.57 %
|
|
|
|
|
|
3.31 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Nonaccrual loans and
loans held for sale are included in the daily average loan balances
outstanding.
|
(2)
|
The yield on tax-exempt
loans and tax-exempt investment securities is computed on a
tax-equivalent basis using a federal tax rate of 21%, and adjusted
for the disallowance of interest expense.
|
Nicolet Bankshares,
Inc.
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP Financial Measures (Unaudited)
|
|
|
|
|
|
|
|
|
At or for the Three
Months Ended
|
(In thousands, except
per share data)
|
|
03/31/2022
|
|
12/31/2021
|
|
9/30/2021
|
|
6/30/2021
|
|
3/31/2021
|
Adjusted net income
reconciliation: (1)
|
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
|
$
24,164
|
|
$
16,305
|
|
$
7,824
|
|
$
18,284
|
|
$
18,239
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Provision expense
related to merger
|
|
—
|
|
8,400
|
|
6,000
|
|
—
|
|
—
|
Assets (gains) losses,
net
|
|
(1,313)
|
|
(465)
|
|
1,187
|
|
(4,192)
|
|
(711)
|
Merger-related
expense
|
|
98
|
|
2,202
|
|
2,793
|
|
656
|
|
—
|
Branch closure
expense
|
|
—
|
|
—
|
|
944
|
|
—
|
|
—
|
Adjustments subtotal
|
|
(1,215)
|
|
10,137
|
|
10,924
|
|
(3,536)
|
|
(711)
|
Tax on Adjustments
(25%)
|
|
(304)
|
|
2,534
|
|
2,731
|
|
(884)
|
|
(178)
|
Adjustments, net of tax
|
|
(911)
|
|
7,603
|
|
8,193
|
|
(2,652)
|
|
(533)
|
Adjusted net income
(Non-GAAP)
|
|
$
23,253
|
|
$
23,908
|
|
$
16,017
|
|
$
15,632
|
|
$
17,706
|
Common shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted common shares
|
|
14,215
|
|
13,049
|
|
10,776
|
|
10,326
|
|
10,403
|
Diluted earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share (GAAP)
|
|
$
1.70
|
|
$
1.25
|
|
$
0.73
|
|
$
1.77
|
|
$
1.75
|
Adjusted Diluted
earnings per common share (Non-GAAP)
|
|
$
1.64
|
|
$
1.83
|
|
$
1.49
|
|
$
1.51
|
|
$
1.70
|
Tangible assets:
(2)
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
7,320,212
|
|
$
7,695,037
|
|
$
6,407,820
|
|
$
4,587,347
|
|
$
4,543,804
|
Goodwill and other
intangibles, net
|
|
338,068
|
|
339,492
|
|
269,954
|
|
173,711
|
|
174,501
|
Tangible assets
|
|
$
6,982,144
|
|
$
7,355,545
|
|
$
6,137,866
|
|
$
4,413,636
|
|
$
4,369,303
|
Tangible common
equity: (2)
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
$
836,310
|
|
$
891,891
|
|
$
729,278
|
|
$
559,395
|
|
$
550,046
|
Goodwill and other
intangibles, net
|
|
338,068
|
|
339,492
|
|
269,954
|
|
173,711
|
|
174,501
|
Tangible common equity
|
|
$
498,242
|
|
$
552,399
|
|
$
459,324
|
|
$
385,684
|
|
$
375,545
|
Tangible average
common equity: (2)
|
|
|
|
|
|
|
|
|
|
|
Average stockholders'
equity (common)
|
|
$
861,319
|
|
$
784,666
|
|
$
608,946
|
|
$
550,974
|
|
$
544,541
|
Average goodwill and
other intangibles, net
|
|
338,694
|
|
294,051
|
|
201,748
|
|
174,026
|
|
174,825
|
Average tangible common equity
|
|
$
522,625
|
|
$
490,615
|
|
$
407,198
|
|
$
376,948
|
|
$
369,716
|
|
|
(1)
|
The adjusted net income
measure and related reconciliation provide information useful to
investors in understanding the operating performance and trends of
Nicolet and also to aid investors in the comparison of Nicolet's
financial performance to the financial performance of peer
banks.
|
(2)
|
The ratios of tangible
book value per common share, return on average tangible common
equity, and tangible common equity to tangible assets exclude
goodwill and other intangibles, net. These financial ratios
have been included as they are considered to be critical metrics
with which to analyze and evaluate financial condition and capital
strength.
|
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SOURCE Nicolet Bankshares, Inc.