NIC Nicolet Bankshares Inc

• Well positioned to be opportunistic
  • Net income of $28 million or adjusted net income (non-GAAP) of $26 million for first quarter 2024, compared to net income of $31 million or adjusted net income (non-GAAP) of $28 million in prior quarter, and net loss of $9 million or adjusted net income (non-GAAP) of $22 million for first quarter 2023
  • Tangible common equity ratio increased to 8.33% for first quarter 2024
  • Credit quality remains strong with nonperforming assets stable at 0.33% of total assets and negligible net charge-offs
• Continued strong financial performance metrics for first quarter 2024
  • 17.07% Return on average tangible common equity
  • 1.33% Return on average assets
• Tangible book value per share increased to $44.91 for first quarter 2024

Nicolet Bankshares, Inc. (NYSE: NIC) (“Nicolet”) announced first quarter 2024 net income of $28 million and earnings per diluted common share of $1.82, compared to net income of $31 million and earnings per diluted common share of $2.02 for fourth quarter 2024, and net loss of $9 million and loss per diluted common share of $0.61 for first quarter 2023.

Net income reflected certain non-core items and the related tax effect of each, including the first quarter 2023 balance sheet repositioning and third quarter 2023 change in Wisconsin state tax law, as well as gains / (losses) on other assets and investments in all periods. These non-core items positively impacted earnings per diluted common share $0.10 and $0.17 for first quarter 2024 and fourth quarter 2023, respectively, and negatively impacted earnings per diluted common share $2.06 for first quarter 2023.

“Our first quarter results show our focus on execution as we move throughout the year,” said Mike Daniels, Chairman, President, and CEO of Nicolet. “We continue to maintain our relationship-based pricing discipline paired with our credit culture as our team consistently shows the value that we bring. We are encouraged by the results, and we will continue to challenge ourselves to manage both growth and efficiency.”

Daniels continued, “Our strong core profitability has allowed us to build capital, which puts us in an enviable position of having significant options going forward. These options include organic growth, M&A, capital return to shareholders through share buybacks and dividends. While the M&A market remains slow, we are reviewing opportunities and participating in high-level discussions with potential partners, as we maintain our high degree of discipline with our M&A strategy. Our goal is always to partner with a franchise that makes Nicolet and the communities we serve better.”

Nicolet’s 2023 results were significantly impacted by the first quarter 2023 balance sheet repositioning, which included the sale of $500 million (par value) U.S. Treasury held to maturity securities for a pre-tax loss of $38 million or an after-tax loss of $28 million, with the net proceeds used to reduce FHLB borrowings and the remainder held in investable cash. In addition, in July 2023 a new Wisconsin tax law was signed which provided financial institutions with an exemption from state taxable income for interest, fees, and penalties earned on specific loans to existing Wisconsin-based business or agriculture purpose loans. This tax law change to Nicolet moving forward will be a reduction / elimination of State income taxes being expensed; however, it also required a $9.1 million valuation allowance to be established for the State-related deferred tax asset as of the effective date of the legislation. While both provided a drag to 2023 earnings, each also serve as a tailwind for first quarter 2024 and beyond.

Balance Sheet Review

At March 31, 2024, period end assets were $8.4 billion, down slightly ($22 million) from December 31, 2023, mostly lower cash balances, partly offset by growth in loans. Total loans increased $44 million (1%) from December 31, 2023, with growth in agricultural, commercial and industrial, and residential real estate loans. Total deposits of $7.2 billion at March 31, 2024, decreased $32 million from December 31, 2023, mostly noninterest-bearing demand deposits. Total capital was $1.1 billion at March 31, 2024, an increase of $25 million over December 31, 2023, with earnings partly offset by the quarterly common stock dividend.

Asset Quality

Nonperforming assets were $28 million and represented 0.33% of total assets at March 31, 2024, unchanged from December 31, 2023, and down from $41 million or 0.50% at March 31, 2023. The allowance for credit losses-loans was $64 million and represented 1.01% of total loans at March 31, 2024, compared to $64 million (or 1.00% of total loans) at December 31, 2023, and $62 million (or 1.00% of total loans) at March 31, 2023. Asset quality trends remain solid and loan net charge-offs were negligible.

Income Statement Review - Quarter

Net income was $28 million and adjusted net income (non-GAAP) was $26 million for first quarter 2024, compared to net income of $31 million and adjusted net income (non-GAAP) of $28 million for fourth quarter 2023.

Net interest income was $63 million for first quarter 2024, down $1 million from fourth quarter 2023. Interest income increased $1 million mostly due to the repricing of new and renewed loans in a rising interest rate environment, partly offset by lower investable cash balances, while interest expense increased $2 million due to higher average rates on seasonal deposits. The net interest margin for first quarter 2024 was 3.26%, down 4 bps from 3.30% for fourth quarter 2023. The yield on interest-earning assets increased 12 bps (to 5.44%) mostly due to higher average rates from the repricing of the loan portfolio, while the cost of funds increased 11 bps (to 3.01%) for first quarter 2024, attributable mainly to higher cost seasonal deposits.

Noninterest income of $19 million for first quarter 2024 decreased $5 million from fourth quarter 2023, mostly due to the change in net asset gains. First quarter 2024 included net gains of $2 million due to a $1 million gain on sale of an investment security and a $1 million gain on the early extinguishment of subordinated debt, while fourth quarter 2023 included net gains of $6 million from the $9 million pre-tax gain on the sale of Nicolet’s member interest in UFS, LLC, partly offset by a $3 million loss on the sale of certain securities. Excluding the net asset gains (losses), noninterest income for first quarter 2024 was $18 million, a $1 million decrease from fourth quarter 2023, mostly due to changes in the fair value of nonqualified deferred compensation plan assets.

Noninterest expense of $47 million for first quarter 2024 decreased $3 million from fourth quarter 2023. Personnel expense was minimally changed with higher salaries and incentives substantially offset by lower health insurance and a decrease in the fair value of nonqualified deferred compensation plan liabilities. Non-personnel expenses decreased $3 million (12%) between the sequential quarters, mostly lower data processing from an early contract termination charge in fourth quarter 2023.

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 primarily in Wisconsin, Michigan, and Minnesota. 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 adjusted net income, non-GAAP adjusted earnings per diluted common share, tangible book value per common share, return on average tangible common equity, and tangible common equity to tangible assets. Management believes such measures to be helpful to management, investors and others in understanding Nicolet’s results of operations or financial position. When 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 Private Securities Litigation Reform Act. Forward-looking statements generally can be identified by words or phrases such as, without limitation, “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, and in this press release include our statements about potential M&A, share buyback, and dividend activity.

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. Risks, uncertainties and other factors that could cause the actual results to differ materially from the statements, include, but are not limited to future legislative changes to the taxes imposed upon Nicolet, potential expansion into other jurisdictions that impose different or higher taxes and our ability to generate loans that qualify for the Wisconsin tax reduction / elimination. Additional factors which could affect the forward looking statements can be found in Nicolet’s 2023 Annual Report on Form 10-K, as well subsequent filings with the SEC and are available on the SEC’s website at www.sec.gov.

Any forward-looking statements included in this press release are made as of the date hereof and are based on information available to management at that time. Except as required by law, Nicolet disclaims any obligation to update or revise any forward-looking statement contained in this press release to reflect new information or 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)

 

3/31/2024

 

12/31/2023

 

9/30/2023

 

6/30/2023

 

3/31/2023

Assets

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

81,677

 

 

$

129,898

 

 

$

109,414

 

 

$

122,021

 

 

$

93,462

 

Interest-earning deposits

 

 

345,747

 

 

 

361,533

 

 

 

436,466

 

 

 

383,185

 

 

 

20,718

 

Cash and cash equivalents

 

 

427,424

 

 

 

491,431

 

 

 

545,880

 

 

 

505,206

 

 

 

114,180

 

Certificates of deposit in other banks

 

 

5,639

 

 

 

6,374

 

 

 

7,598

 

 

 

9,808

 

 

 

11,293

 

Securities available for sale, at fair value

 

 

803,963

 

 

 

802,573

 

 

 

793,826

 

 

 

921,108

 

 

 

1,023,176

 

Other investments

 

 

60,464

 

 

 

57,560

 

 

 

58,367

 

 

 

57,578

 

 

 

57,482

 

Loans held for sale

 

 

5,022

 

 

 

4,160

 

 

 

6,500

 

 

 

3,849

 

 

 

4,962

 

Loans

 

 

6,397,617

 

 

 

6,353,942

 

 

 

6,239,257

 

 

 

6,222,776

 

 

 

6,223,732

 

Allowance for credit losses - loans

 

 

(64,347

)

 

 

(63,610

)

 

 

(63,160

)

 

 

(62,811

)

 

 

(62,412

)

Loans, net

 

 

6,333,270

 

 

 

6,290,332

 

 

 

6,176,097

 

 

 

6,159,965

 

 

 

6,161,320

 

Premises and equipment, net

 

 

119,962

 

 

 

118,756

 

 

 

117,744

 

 

 

117,278

 

 

 

112,569

 

Bank owned life insurance (“BOLI”)

 

 

170,746

 

 

 

169,392

 

 

 

168,223

 

 

 

167,192

 

 

 

166,107

 

Goodwill and other intangibles, net

 

 

393,183

 

 

 

394,366

 

 

 

396,208

 

 

 

398,194

 

 

 

400,277

 

Accrued interest receivable and other assets

 

 

126,989

 

 

 

133,734

 

 

 

145,719

 

 

 

142,450

 

 

 

140,988

 

Total assets

 

$

8,446,662

 

 

$

8,468,678

 

 

$

8,416,162

 

 

$

8,482,628

 

 

$

8,192,354

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

$

1,665,229

 

 

$

1,958,709

 

 

$

2,020,074

 

 

$

2,059,939

 

 

$

2,094,623

 

Interest-bearing deposits

 

 

5,500,503

 

 

 

5,239,091

 

 

 

5,162,314

 

 

 

5,138,665

 

 

 

4,833,956

 

Total deposits

 

 

7,165,732

 

 

 

7,197,800

 

 

 

7,182,388

 

 

 

7,198,604

 

 

 

6,928,579

 

Short-term borrowings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

50,000

 

 

 

50,000

 

Long-term borrowings

 

 

162,257

 

 

 

166,930

 

 

 

197,754

 

 

 

197,577

 

 

 

197,448

 

Accrued interest payable and other liabilities

 

 

55,018

 

 

 

64,941

 

 

 

61,559

 

 

 

58,809

 

 

 

54,535

 

Total liabilities

 

 

7,383,007

 

 

 

7,429,671

 

 

 

7,441,701

 

 

 

7,504,990

 

 

 

7,230,562

 

Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

149

 

 

 

149

 

 

 

147

 

 

 

147

 

 

 

147

 

Additional paid-in capital

 

 

636,621

 

 

 

633,770

 

 

 

626,348

 

 

 

624,897

 

 

 

623,746

 

Retained earnings

 

 

482,295

 

 

 

458,261

 

 

 

431,317

 

 

 

417,863

 

 

 

398,966

 

Accumulated other comprehensive income (loss)

 

 

(55,410

)

 

 

(53,173

)

 

 

(83,351

)

 

 

(65,269

)

 

 

(61,067

)

Total stockholders' equity

 

 

1,063,655

 

 

 

1,039,007

 

 

 

974,461

 

 

 

977,638

 

 

 

961,792

 

Total liabilities and stockholders' equity

 

$

8,446,662

 

 

$

8,468,678

 

 

$

8,416,162

 

 

$

8,482,628

 

 

$

8,192,354

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

 

14,930,549

 

 

 

14,894,209

 

 

 

14,757,565

 

 

 

14,717,938

 

 

 

14,698,265

 

Nicolet Bankshares, Inc.

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Income (Loss) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

(In thousands, except per share data)

 

3/31/2024

 

12/31/2023

 

9/30/2023

 

6/30/2023

 

3/31/2023

Interest income:

 

 

 

 

 

 

 

 

 

 

Loans, including loan fees

 

$

93,648

 

$

90,265

 

$

87,657

 

 

$

84,091

 

 

$

79,142

 

Taxable investment securities

 

 

4,557

 

 

4,737

 

 

4,351

 

 

 

4,133

 

 

 

4,961

 

Tax-exempt investment securities

 

 

1,238

 

 

1,394

 

 

1,424

 

 

 

1,476

 

 

 

1,737

 

Other interest income

 

 

4,588

 

 

7,149

 

 

6,452

 

 

 

2,357

 

 

 

1,536

 

Total interest income

 

 

104,031

 

 

103,545

 

 

99,884

 

 

 

92,057

 

 

 

87,376

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

38,990

 

 

36,583

 

 

34,964

 

 

 

29,340

 

 

 

24,937

 

Short-term borrowings

 

 

—

 

 

—

 

 

474

 

 

 

1,108

 

 

 

3,212

 

Long-term borrowings

 

 

2,234

 

 

2,680

 

 

2,972

 

 

 

2,570

 

 

 

2,506

 

Total interest expense

 

 

41,224

 

 

39,263

 

 

38,410

 

 

 

33,018

 

 

 

30,655

 

Net interest income

 

 

62,807

 

 

64,282

 

 

61,474

 

 

 

59,039

 

 

 

56,721

 

Provision for credit losses

 

 

750

 

 

1,000

 

 

450

 

 

 

450

 

 

 

3,090

 

Net interest income after provision for credit losses

 

 

62,057

 

 

63,282

 

 

61,024

 

 

 

58,589

 

 

 

53,631

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

Wealth management fee income

 

 

6,485

 

 

6,308

 

 

6,057

 

 

 

5,870

 

 

 

5,512

 

Mortgage income, net

 

 

1,364

 

 

1,856

 

 

2,020

 

 

 

1,822

 

 

 

1,466

 

Service charges on deposit accounts

 

 

1,581

 

 

1,475

 

 

1,492

 

 

 

1,529

 

 

 

1,480

 

Card interchange income

 

 

3,098

 

 

3,306

 

 

3,321

 

 

 

3,331

 

 

 

3,033

 

BOLI income

 

 

1,347

 

 

1,161

 

 

1,090

 

 

 

1,073

 

 

 

1,200

 

Asset gains (losses), net

 

 

1,909

 

 

5,947

 

 

31

 

 

 

(318

)

 

 

(38,468

)

Deferred compensation plan asset market valuations

 

 

59

 

 

949

 

 

(457

)

 

 

499

 

 

 

946

 

LSR income, net

 

 

1,134

 

 

1,027

 

 

1,108

 

 

 

1,135

 

 

 

1,155

 

Other noninterest income

 

 

2,445

 

 

2,405

 

 

1,879

 

 

 

1,900

 

 

 

1,832

 

Total noninterest income

 

 

19,422

 

 

24,434

 

 

16,541

 

 

 

16,841

 

 

 

(21,844

)

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

Personnel expense

 

 

26,510

 

 

26,937

 

 

23,944

 

 

 

23,900

 

 

 

24,328

 

Occupancy, equipment and office

 

 

8,944

 

 

9,567

 

 

9,027

 

 

 

8,845

 

 

 

8,783

 

Business development and marketing

 

 

2,142

 

 

1,854

 

 

1,869

 

 

 

1,946

 

 

 

2,121

 

Data processing

 

 

4,270

 

 

7,043

 

 

4,643

 

 

 

4,218

 

 

 

3,988

 

Intangibles amortization

 

 

1,833

 

 

1,842

 

 

1,986

 

 

 

2,083

 

 

 

2,161

 

FDIC assessments

 

 

1,033

 

 

950

 

 

1,500

 

 

 

1,009

 

 

 

540

 

Merger-related expense

 

 

—

 

 

—

 

 

—

 

 

 

26

 

 

 

163

 

Other noninterest expense

 

 

2,415

 

 

2,103

 

 

2,769

 

 

 

2,930

 

 

 

2,791

 

Total noninterest expense

 

 

47,147

 

 

50,296

 

 

45,738

 

 

 

44,957

 

 

 

44,875

 

Income (loss) before income tax expense

 

 

34,332

 

 

37,420

 

 

31,827

 

 

 

30,473

 

 

 

(13,088

)

Income tax expense (benefit)

 

 

6,542

 

 

6,759

 

 

14,669

 

 

 

7,878

 

 

 

(4,190

)

Net income (loss)

 

$

27,790

 

$

30,661

 

$

17,158

 

 

$

22,595

 

 

$

(8,898

)

Earnings (loss) per common share:

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.86

 

$

2.07

 

$

1.16

 

 

$

1.54

 

 

$

(0.61

)

Diluted

 

$

1.82

 

$

2.02

 

$

1.14

 

 

$

1.51

 

 

$

(0.61

)

Common shares outstanding:

 

 

 

 

 

 

 

 

 

 

Basic weighted average

 

 

14,907

 

 

14,823

 

 

14,740

 

 

 

14,711

 

 

 

14,694

 

Diluted weighted average

 

 

15,249

 

 

15,142

 

 

15,100

 

 

 

14,960

 

 

 

14,694

 

Nicolet Bankshares, Inc.

Consolidated Financial Summary (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

(In thousands, except share & per share data)

 

3/31/2024

 

12/31/2023

 

9/30/2023

 

6/30/2023

 

3/31/2023

Selected Average Balances:

 

 

 

 

 

 

 

 

 

 

Loans

 

$

6,398,838

 

 

$

6,263,971

 

 

$

6,230,336

 

 

$

6,237,757

 

 

$

6,201,780

 

Investment securities

 

 

884,775

 

 

 

897,437

 

 

 

962,607

 

 

 

1,068,144

 

 

 

1,508,535

 

Interest-earning assets

 

 

7,629,120

 

 

 

7,683,495

 

 

 

7,676,895

 

 

 

7,497,935

 

 

 

7,830,590

 

Cash and cash equivalents

 

 

364,375

 

 

 

558,473

 

 

 

513,250

 

 

 

203,883

 

 

 

127,726

 

Goodwill and other intangibles, net

 

 

393,961

 

 

 

395,158

 

 

 

397,052

 

 

 

399,080

 

 

 

401,212

 

Total assets

 

 

8,380,595

 

 

 

8,415,169

 

 

 

8,417,456

 

 

 

8,228,600

 

 

 

8,570,623

 

Deposits

 

 

7,112,971

 

 

 

7,189,650

 

 

 

7,156,577

 

 

 

6,941,037

 

 

 

7,060,262

 

Interest-bearing liabilities

 

 

5,509,882

 

 

 

5,358,445

 

 

 

5,385,292

 

 

 

5,212,285

 

 

 

5,391,107

 

Stockholders’ equity (common)

 

 

1,048,596

 

 

 

996,745

 

 

 

983,133

 

 

 

967,142

 

 

 

970,108

 

Selected Ratios: (1)

 

 

 

 

 

 

 

 

 

 

Book value per common share

 

$

71.24

 

 

$

69.76

 

 

$

66.03

 

 

$

66.42

 

 

$

65.44

 

Tangible book value per common share (2)

 

$

44.91

 

 

$

43.28

 

 

$

39.18

 

 

$

39.37

 

 

$

38.20

 

Return on average assets

 

 

1.33

%

 

 

1.45

%

 

 

0.81

%

 

 

1.10

%

 

 

(0.42

)%

Return on average common equity

 

 

10.66

 

 

 

12.20

 

 

 

6.92

 

 

 

9.37

 

 

 

(3.72

)

Return on average tangible common equity (2)

 

 

17.07

 

 

 

20.22

 

 

 

11.62

 

 

 

15.95

 

 

 

(6.34

)

Average equity to average assets

 

 

12.51

 

 

 

11.84

 

 

 

11.68

 

 

 

11.75

 

 

 

11.32

 

Stockholders’ equity to assets

 

 

12.59

 

 

 

12.27

 

 

 

11.58

 

 

 

11.53

 

 

 

11.74

 

Tangible common equity to tangible assets (2)

 

 

8.33

 

 

 

7.98

 

 

 

7.21

 

 

 

7.17

 

 

 

7.21

 

Net interest margin

 

 

3.26

 

 

 

3.30

 

 

 

3.16

 

 

 

3.14

 

 

 

2.91

 

Efficiency ratio

 

 

58.34

 

 

 

60.41

 

 

 

58.27

 

 

 

58.60

 

 

 

60.69

 

Effective tax rate

 

 

19.06

 

 

 

18.06

 

 

 

46.09

 

 

 

25.85

 

 

 

32.01

 

Selected Asset Quality Information:

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

26,677

 

 

$

26,625

 

 

$

29,507

 

 

$

25,278

 

 

$

38,895

 

Other real estate owned - closed branches

 

 

808

 

 

 

808

 

 

 

884

 

 

 

958

 

 

 

1,347

 

Other real estate owned

 

 

437

 

 

 

459

 

 

 

1,147

 

 

 

520

 

 

 

628

 

Nonperforming assets

 

$

27,922

 

 

$

27,892

 

 

$

31,538

 

 

$

26,756

 

 

$

40,870

 

Net loan charge-offs (recoveries)

 

$

13

 

 

$

550

 

 

$

101

 

 

$

51

 

 

$

167

 

Allowance for credit losses-loans to loans

 

 

1.01

%

 

 

1.00

%

 

 

1.01

%

 

 

1.01

%

 

 

1.00

%

Net loan charge-offs to average loans (1)

 

 

0.00

 

 

 

0.03

 

 

 

0.01

 

 

 

0.01

 

 

 

0.01

 

Nonperforming loans to total loans

 

 

0.42

 

 

 

0.42

 

 

 

0.47

 

 

 

0.41

 

 

 

0.62

 

Nonperforming assets to total assets

 

 

0.33

 

 

 

0.33

 

 

 

0.37

 

 

 

0.32

 

 

 

0.50

 

Stock Repurchase Information:

 

 

 

 

 

 

 

 

 

 

Common stock repurchased (dollars) (3)

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1,519

 

 

$

—

 

Common stock repurchased (full shares) (3)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

26,853

 

 

 

—

 

(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.

Consolidated Loan & Deposit Metrics (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

3/31/2024

 

12/31/2023

 

9/30/2023

 

6/30/2023

 

3/31/2023

Period End Loan Composition

 

 

 

 

 

 

 

 

 

 

Commercial & industrial

 

$

1,307,490

 

$

1,284,009

 

$

1,237,789

 

$

1,318,567

 

$

1,330,052

Owner-occupied commercial real estate (“CRE”)

 

 

955,786

 

 

956,594

 

 

971,397

 

 

969,202

 

 

969,064

Agricultural

 

 

1,190,371

 

 

1,161,531

 

 

1,108,261

 

 

1,068,999

 

 

1,065,909

Commercial

 

 

3,453,647

 

 

3,402,134

 

 

3,317,447

 

 

3,356,768

 

 

3,365,025

CRE investment

 

 

1,188,722

 

 

1,142,251

 

 

1,130,938

 

 

1,108,692

 

 

1,146,388

Construction & land development

 

 

241,730

 

 

310,110

 

 

326,747

 

 

337,389

 

 

333,370

Commercial real estate

 

 

1,430,452

 

 

1,452,361

 

 

1,457,685

 

 

1,446,081

 

 

1,479,758

Commercial-based loans

 

 

4,884,099

 

 

4,854,495

 

 

4,775,132

 

 

4,802,849

 

 

4,844,783

Residential construction

 

 

84,370

 

 

75,726

 

 

76,289

 

 

108,095

 

 

134,782

Residential first mortgage

 

 

1,167,069

 

 

1,167,109

 

 

1,136,748

 

 

1,072,609

 

 

1,014,166

Residential junior mortgage

 

 

206,434

 

 

200,884

 

 

195,432

 

 

184,873

 

 

177,026

Residential real estate

 

 

1,457,873

 

 

1,443,719

 

 

1,408,469

 

 

1,365,577

 

 

1,325,974

Retail & other

 

 

55,645

 

 

55,728

 

 

55,656

 

 

54,350

 

 

52,975

Retail-based loans

 

 

1,513,518

 

 

1,499,447

 

 

1,464,125

 

 

1,419,927

 

 

1,378,949

Total loans

 

$

6,397,617

 

$

6,353,942

 

$

6,239,257

 

$

6,222,776

 

$

6,223,732

 

 

 

 

 

 

 

 

 

 

 

Period End Deposit Composition

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

$

1,665,229

 

$

1,958,709

 

$

2,020,074

 

$

2,059,939

 

$

2,094,623

Interest-bearing demand

 

 

1,121,030

 

 

1,055,520

 

 

955,746

 

 

1,030,919

 

 

1,138,415

Money market

 

 

2,027,559

 

 

1,891,287

 

 

1,933,227

 

 

1,835,523

 

 

1,886,879

Savings

 

 

765,084

 

 

768,401

 

 

789,045

 

 

821,803

 

 

865,824

Time

 

 

1,586,830

 

 

1,523,883

 

 

1,484,296

 

 

1,450,420

 

 

942,838

Total deposits

 

$

7,165,732

 

$

7,197,800

 

$

7,182,388

 

$

7,198,604

 

$

6,928,579

Brokered transaction accounts

 

$

265,818

 

$

166,861

 

$

146,517

 

$

173,107

 

$

233,393

Brokered time deposits

 

 

517,190

 

 

448,582

 

 

457,433

 

 

566,405

 

 

289,181

Total brokered deposits

 

$

783,008

 

$

615,443

 

$

603,950

 

$

739,512

 

$

522,574

Customer transaction accounts

 

$

5,313,085

 

$

5,507,056

 

$

5,551,575

 

$

5,575,077

 

$

5,752,348

Customer time deposits

 

 

1,069,639

 

 

1,075,301

 

 

1,026,863

 

 

884,015

 

 

653,657

Total customer deposits (core)

 

$

6,382,724

 

$

6,582,357

 

$

6,578,438

 

$

6,459,092

 

$

6,406,005

Nicolet Bankshares, Inc.

Net Interest Income and Net Interest Margin Analysis (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

 

 

Average

 

 

 

Average

 

Average

 

 

 

Average

 

Average

 

 

 

Average

(In thousands)

 

Balance

 

Interest

 

Rate

 

Balance

 

Interest

 

Rate

 

Balance

 

Interest

 

Rate

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans (1) (2)

 

$

6,398,838

 

$

93,744

 

5.81

%

 

$

6,263,971

 

$

90,313

 

5.66

%

 

$

6,201,780

 

$

79,186

 

5.11

%

Investment securities (2)

 

 

884,775

 

 

6,197

 

2.80

%

 

 

897,437

 

 

6,567

 

2.93

%

 

 

1,508,535

 

 

7,246

 

1.93

%

Other interest-earning assets

 

 

345,507

 

 

4,588

 

5.26

%

 

 

522,087

 

 

7,149

 

5.37

%

 

 

120,275

 

 

1,536

 

5.11

%

Total interest-earning assets

 

 

7,629,120

 

$

104,529

 

5.44

%

 

 

7,683,495

 

$

104,029

 

5.32

%

 

 

7,830,590

 

$

87,968

 

4.49

%

Other assets, net

 

 

751,475

 

 

 

 

 

 

731,674

 

 

 

 

 

 

740,033

 

 

 

Total assets

$

8,380,595

$

8,415,169

$

8,570,623

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing core deposits

 

$

4,664,670

 

$

31,256

 

2.69

%

 

$

4,570,493

 

$

29,730

 

2.58

%

 

$

4,325,340

 

$

19,587

 

1.84

%

Brokered deposits

 

 

680,124

 

 

7,734

 

4.57

%

 

 

601,379

 

 

6,853

 

4.52

%

 

 

566,282

 

 

5,350

 

3.83

%

Total interest-bearing deposits

 

 

5,344,794

 

 

38,990

 

2.93

%

 

 

5,171,872

 

 

36,583

 

2.81

%

 

 

4,891,622

 

 

24,937

 

2.07

%

Wholesale funding

 

 

165,088

 

 

2,234

 

5.35

%

 

 

186,573

 

 

2,680

 

5.62

%

 

 

499,485

 

 

5,718

 

4.58

%

Total interest-bearing liabilities

 

 

5,509,882

 

$

41,224

 

3.01

%

 

 

5,358,445

 

$

39,263

 

2.90

%

 

 

5,391,107

 

$

30,655

 

2.30

%

Noninterest-bearing demand deposits

 

 

1,768,177

 

 

 

 

 

 

2,017,778

 

 

 

 

 

 

2,168,640

 

 

 

 

Other liabilities

 

 

53,940

 

 

 

 

 

 

42,201

 

 

 

 

 

 

40,768

 

 

 

 

Stockholders' equity

 

 

1,048,596

 

 

 

 

 

 

996,745

 

 

 

 

 

 

970,108

 

 

 

 

Total liabilities and stockholders' equity

 

$

8,380,595

 

 

 

 

 

$

8,415,169

 

 

 

 

 

$

8,570,623

 

 

 

 

Net interest income and rate spread

 

 

 

$

63,305

 

2.43

%

 

 

 

$

64,766

 

2.42

%

 

 

 

$

57,313

 

2.19

%

Net interest margin

 

 

 

 

 

3.26

%

 

 

 

 

 

3.30

%

 

 

 

 

 

2.91

%

Loan purchase accounting accretion (3)

 

 

 

$

1,527

 

0.09

%

 

 

 

$

1,587

 

0.10

%

 

 

 

$

1,636

 

0.11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

(3)

Loan purchase accounting accretion included in Total loans above, and the related impact to net interest margin.

Nicolet Bankshares, Inc.

Reconciliation of Non-GAAP Financial Measures (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

(In thousands, except per share data)

 

3/31/2024

 

12/31/2023

 

9/30/2023

 

6/30/2023

 

3/31/2023

Adjusted net income (loss) reconciliation: (1)

 

 

 

 

 

 

 

 

 

 

Net income (loss) (GAAP)

 

$

27,790

 

 

$

30,661

 

 

$

17,158

 

 

$

22,595

 

$

(8,898

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

Provision expense (2)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

2,340

 

Assets (gains) losses, net

 

 

(1,909

)

 

 

(5,947

)

 

 

(31

)

 

 

318

 

 

38,468

 

Merger-related expense

 

 

—

 

 

 

—

 

 

 

—

 

 

 

26

 

 

163

 

Contract termination charge

 

 

—

 

 

 

2,689

 

 

 

—

 

 

 

—

 

 

—

 

Adjustments subtotal

 

 

(1,909

)

 

 

(3,258

)

 

 

(31

)

 

 

344

 

 

40,971

 

Tax on Adjustments (3)

 

 

(372

)

 

 

(635

)

 

 

(6

)

 

 

86

 

 

10,243

 

Tax - Wisconsin Tax Law Change (4)

 

 

—

 

 

 

—

 

 

 

6,151

 

 

 

—

 

 

—

 

Adjusted net income (Non-GAAP)

 

$

26,253

 

 

$

28,038

 

 

$

23,284

 

 

$

22,853

 

$

21,830

 

Diluted earnings (loss) per common share:

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per common share (GAAP)

 

$

1.82

 

 

$

2.02

 

 

$

1.14

 

 

$

1.51

 

$

(0.61

)

Adjusted Diluted earnings per common share (Non-GAAP)

 

$

1.72

 

 

$

1.85

 

 

$

1.54

 

 

$

1.53

 

$

1.45

 

Tangible assets: (5)

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

8,446,662

 

 

$

8,468,678

 

 

$

8,416,162

 

 

$

8,482,628

 

$

8,192,354

 

Goodwill and other intangibles, net

 

 

393,183

 

 

 

394,366

 

 

 

396,208

 

 

 

398,194

 

 

400,277

 

Tangible assets

 

$

8,053,479

 

 

$

8,074,312

 

 

$

8,019,954

 

 

$

8,084,434

 

$

7,792,077

 

Tangible common equity: (5)

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity (common)

 

$

1,063,655

 

 

$

1,039,007

 

 

$

974,461

 

 

$

977,638

 

$

961,792

 

Goodwill and other intangibles, net

 

 

393,183

 

 

 

394,366

 

 

 

396,208

 

 

 

398,194

 

 

400,277

 

Tangible common equity

 

$

670,472

 

 

$

644,641

 

 

$

578,253

 

 

$

579,444

 

$

561,515

 

Tangible average common equity: (5)

 

 

 

 

 

 

 

 

 

 

Average stockholders’ equity (common)

 

$

1,048,596

 

 

$

996,745

 

 

$

983,133

 

 

$

967,142

 

$

970,108

 

Average goodwill and other intangibles, net

 

 

393,961

 

 

 

395,158

 

 

 

397,052

 

 

 

399,080

 

 

401,212

 

Average tangible common equity

 

$

654,635

 

 

$

601,587

 

 

$

586,081

 

 

$

568,062

 

$

568,896

 

Note: Numbers may not sum due to rounding.

(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)

Provision expense for 2023 is attributable to the expected loss on a bank subordinated debt investment.

(3)

The effective tax rate for periods prior to the July 1, 2023, effective date of the Wisconsin tax law change assumed an effective tax rate of 25%, and periods subsequent to the effective date assumed an effective tax rate of 19.5%.

(4)

The adjusted net income reconciliation for first and second quarter 2023 is as originally reported, and has not been restated to reflect the $3 million excess tax expense of those quarters that was subsequently reversed in third quarter 2023 due to the Wisconsin tax law change. Thus, the adjusted net income reconciliation for the quarters of 2023 will not sum to the full year impact.

(5)

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.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240416543876/en/

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