- Net income $33 million for third quarter 2024, compared to
net income of $29 million in prior quarter, and net income of $17
million for third quarter 2023
- Net income of $90 million or adjusted net income (non-GAAP)
of $87 million for the first nine months of 2024, compared to net
income of $31 million or adjusted net income (non-GAAP) of $73
million for the first nine months of 2023
- Tangible common equity to tangible assets increased 64 bps
to 9.21% at quarter end due to strong core earnings and a
significant reduction in unrealized losses in the securities
portfolio from lower expected interest rates
- Asset quality remains solid, as nonperforming assets
declined to 31 bps – the lowest level in more than three years;
annualized net charge-offs remain negligible at 2 bps of
loans
Nicolet Bankshares, Inc. (NYSE: NIC) (“Nicolet”) announced third
quarter 2024 net income of $33 million and earnings per diluted
common share of $2.10, compared to net income of $29 million and
earnings per diluted common share of $1.92 for second quarter 2024,
and net income of $17 million and earnings per diluted common share
of $1.14 for third quarter 2023. Net income for the nine months
ended September 30, 2024 was $90 million and earnings per diluted
common share of $5.84, compared to net income of $31 million and
earnings per diluted common share of $2.05 for the nine months
ended September 30, 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 detailed in the Reconciliation of Non-GAAP Financial
Measures table below), as well as gains / (losses) on other assets
and investments in all periods. For the nine months ended September
30, 2024, these non-core items positively impacted earnings per
diluted common share $0.19, and negatively impacted earnings per
diluted common share $2.82 for the nine months ended September 30,
2023.
“The third quarter produced strong results across all revenue
lines, and demonstrated what happens when almost 1,000 people show
up every day to make a difference,” said Mike Daniels, Chairman,
President, and CEO of Nicolet. “Financial results were impressive
with quarterly return on average assets of 1.50% and return on
average tangible common equity of 17.77%. We saw growth in loans
and core deposits. Revenue was up across wealth, mortgage, and all
other fee income areas. And our net interest margin continued its
upward trajectory as we were able to keep deposit and funding costs
relatively stable during the quarter.”
“Furthermore, our credit quality remains exceptional as
nonperforming assets fell to their lowest level in years. This not
only speaks to the team’s ability to execute within Nicolet’s
consistent credit culture, but also to the strength and resilience
of our commercial customer base across the Upper Midwest. Despite
facing higher interest rates, rising input costs due to inflation,
and the challenges of finding qualified workers, our customers have
shown their ability to adapt in this economy. Nicolet’s message of
shared success is resonating within our walls and in the
communities we serve,” Daniels continued.
Balance Sheet Review
At September 30, 2024, period end assets were $8.6 billion, an
increase of $80 million (1%) from June 30, 2024, mostly from loan
growth and improvements in the fair value of the available for sale
securities portfolio. Total loans increased $28 million from June
30, 2024, while the securities portfolio increased $26 million from
June 30, 2024, mostly due to the positive fair value movements.
Total deposits of $7.3 billion at September 30, 2024, increased $19
million from June 30, 2024, the net of a $75 million increase in
noninterest-bearing demand and a $56 million decrease in
interest-bearing deposits. Total capital was $1.1 billion at
September 30, 2024, an increase of $58 million over June 30, 2024,
with solid earnings and improvements in the securities portfolio
valuation partly offset by the quarterly common stock dividend.
Asset Quality
Nonperforming assets were $26 million and represented 0.31% of
total assets at September 30, 2024, compared to $29 million or
0.34% of total assets at June 30, 2024, and $32 million or 0.37% of
total assets at September 30, 2023. The allowance for credit
losses-loans was $66 million and represented 1.00% of total loans
at September 30, 2024, compared to $65 million (or 1.00% of total
loans) at June 30, 2024, and $63 million (or 1.01% of total loans)
at September 30, 2023. Asset quality trends remain solid and loan
net charge-offs were negligible.
Income Statement Review - Quarter
Net income was $33 million for third quarter 2024, compared to
net income of $29 million for second quarter 2024.
Net interest income was $68 million for third quarter 2024, up
$3 million from second quarter 2024. Interest income increased $4
million mostly due to the repricing of new and renewed loans in a
higher interest rate environment, as well as solid loan growth,
while interest expense increased $1 million due to both higher
average balances and higher rates. The net interest margin for
third quarter 2024 was 3.44%, up 9 bps from 3.35% for second
quarter 2024. The yield on interest-earning assets increased 7 bps
(to 5.68%) mostly due to higher average rates from the repricing of
the loan portfolio, while the cost of funds increased 2 bps (to
3.11%) for third quarter 2024.
Noninterest income of $22 million for third quarter 2024
increased $3 million over second quarter 2024, with increases in
most noninterest income categories. Wealth income increased $0.4
million on growth in assets under management (due to both net new
accounts and positive fair value changes), while net mortgage
income grew $0.2 million mostly from higher gains on sale. Net
asset gains and deferred compensation plan asset market valuations
during third quarter 2024 were attributable to positive movements
in the market.
Noninterest expense of $49 million for third quarter 2024
increased $2 million over second quarter 2024. Personnel expense
increased $3 million over second quarter 2024, including higher
incentives commensurate with solid earnings, higher salaries, and
the offsetting market value change in the deferred compensation
plan liabilities. Non-personnel expenses combined decreased $0.4
million from second quarter 2024 on lower marketing (due to timing
of marketing campaigns) and lower other noninterest expense (due to
the board equity retainer granted in second quarter), partly offset
by higher data processing.
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 and 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 company, 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.
Nicolet Bankshares, Inc.
Consolidated Balance Sheets
(Unaudited)
(In thousands, except share data)
9/30/2024
6/30/2024
3/31/2024
12/31/2023
9/30/2023
Assets
Cash and due from banks
$
124,076
$
109,674
$
81,677
$
129,898
$
109,414
Interest-earning deposits
303,908
298,856
345,747
361,533
436,466
Cash and cash equivalents
427,984
408,530
427,424
491,431
545,880
Certificates of deposit in other banks
3,189
3,924
5,639
6,374
7,598
Securities available for sale, at fair
value
825,907
799,937
803,963
802,573
793,826
Other investments
60,443
60,796
60,464
57,560
58,367
Loans held for sale
11,121
9,450
5,022
4,160
6,500
Loans
6,556,840
6,529,134
6,397,617
6,353,942
6,239,257
Allowance for credit losses - loans
(65,785
)
(65,414
)
(64,347
)
(63,610
)
(63,160
)
Loans, net
6,491,055
6,463,720
6,333,270
6,290,332
6,176,097
Premises and equipment, net
123,585
120,988
119,962
118,756
117,744
Bank owned life insurance (“BOLI”)
185,011
171,972
170,746
169,392
168,223
Goodwill and other intangibles, net
389,727
391,421
393,183
394,366
396,208
Accrued interest receivable and other
assets
119,096
126,279
126,989
133,734
145,719
Total assets
$
8,637,118
$
8,557,017
$
8,446,662
$
8,468,678
$
8,416,162
Liabilities and Stockholders'
Equity
Liabilities:
Noninterest-bearing demand deposits
$
1,839,617
$
1,764,806
$
1,665,229
$
1,958,709
$
2,020,074
Interest-bearing deposits
5,420,380
5,476,272
5,500,503
5,239,091
5,162,314
Total deposits
7,259,997
7,241,078
7,165,732
7,197,800
7,182,388
Short-term borrowings
—
—
—
—
—
Long-term borrowings
161,210
162,433
162,257
166,930
197,754
Accrued interest payable and other
liabilities
66,584
62,093
55,018
64,941
61,559
Total liabilities
7,487,791
7,465,604
7,383,007
7,429,671
7,441,701
Stockholders' Equity:
Common stock
151
150
149
149
147
Additional paid-in capital
647,934
639,159
636,621
633,770
626,348
Retained earnings
535,638
507,366
482,295
458,261
431,317
Accumulated other comprehensive income
(loss)
(34,396
)
(55,262
)
(55,410
)
(53,173
)
(83,351
)
Total stockholders' equity
1,149,327
1,091,413
1,063,655
1,039,007
974,461
Total liabilities and stockholders'
equity
$
8,637,118
$
8,557,017
$
8,446,662
$
8,468,678
$
8,416,162
Common shares outstanding
15,104,381
14,945,598
14,930,549
14,894,209
14,757,565
Nicolet Bankshares, Inc.
Consolidated Statements of Income
(Unaudited)
For the Three Months
Ended
For the Nine Months
Ended
(In thousands, except per share data)
9/30/2024
6/30/2024
3/31/2024
12/31/2023
9/30/2023
9/30/2024
9/30/2023
Interest income:
Loans, including loan fees
$
100,824
$
97,975
$
93,648
$
90,265
$
87,657
$
292,447
$
250,890
Taxable investment securities
5,211
5,056
4,557
4,737
4,351
14,824
13,445
Tax-exempt investment securities
1,095
1,152
1,238
1,394
1,424
3,485
4,637
Other interest income
5,492
4,695
4,588
7,149
6,452
14,775
10,345
Total interest income
112,622
108,878
104,031
103,545
99,884
325,531
279,317
Interest expense:
Deposits
42,060
41,386
38,990
36,583
34,964
122,436
89,241
Short-term borrowings
2
—
—
—
474
2
4,794
Long-term borrowings
2,194
2,150
2,234
2,680
2,972
6,578
8,048
Total interest expense
44,256
43,536
41,224
39,263
38,410
129,016
102,083
Net interest income
68,366
65,342
62,807
64,282
61,474
196,515
177,234
Provision for credit losses
750
1,350
750
1,000
450
2,850
3,990
Net interest income after provision for
credit losses
67,616
63,992
62,057
63,282
61,024
193,665
173,244
Noninterest income:
Wealth management fee income
7,085
6,674
6,485
6,308
6,057
20,244
17,439
Mortgage income, net
2,853
2,634
1,364
1,856
2,020
6,851
5,308
Service charges on deposit accounts
1,913
1,813
1,581
1,475
1,492
5,307
4,501
Card interchange income
3,564
3,458
3,098
3,306
3,321
10,120
9,685
BOLI income
1,455
1,225
1,347
1,161
1,090
4,027
3,363
Asset gains (losses), net
1,177
616
1,909
5,947
31
3,702
(38,755
)
Deferred compensation plan asset market
valuations
1,162
169
59
949
(457
)
1,390
988
LSR income, net
1,090
1,117
1,134
1,027
1,108
3,341
3,398
Other noninterest income
2,079
1,903
2,445
2,405
1,879
6,427
5,611
Total noninterest income
22,378
19,609
19,422
24,434
16,541
61,409
11,538
Noninterest expense:
Personnel expense
28,937
26,285
26,510
26,937
23,944
81,732
72,172
Occupancy, equipment and office
8,826
8,681
8,944
9,567
9,027
26,451
26,655
Business development and marketing
1,823
2,040
2,142
1,854
1,869
6,005
5,936
Data processing
4,535
4,281
4,270
7,043
4,643
13,086
12,849
Intangibles amortization
1,694
1,762
1,833
1,842
1,986
5,289
6,230
FDIC assessments
990
990
1,033
950
1,500
3,013
3,049
Merger-related expense
—
—
—
—
—
—
189
Other noninterest expense
2,343
2,814
2,415
2,103
2,769
7,572
8,490
Total noninterest expense
49,148
46,853
47,147
50,296
45,738
143,148
135,570
Income before income tax
expense
40,846
36,748
34,332
37,420
31,827
111,926
49,212
Income tax expense
8,330
7,475
6,542
6,759
14,669
22,347
18,357
Net income
$
32,516
$
29,273
$
27,790
$
30,661
$
17,158
$
89,579
$
30,855
Earnings per common share:
Basic
$
2.16
$
1.96
$
1.86
$
2.07
$
1.16
$
5.99
$
2.10
Diluted
$
2.10
$
1.92
$
1.82
$
2.02
$
1.14
$
5.84
$
2.05
Common shares outstanding:
Basic weighted average
15,052
14,937
14,907
14,823
14,740
14,966
14,716
Diluted weighted average
15,479
15,276
15,249
15,142
15,100
15,330
15,044
Nicolet Bankshares, Inc.
Consolidated Financial Summary
(Unaudited)
For the Three Months
Ended
For the Nine Months
Ended
(In thousands, except share & per
share data)
9/30/2024
6/30/2024
3/31/2024
12/31/2023
9/30/2023
9/30/2024
9/30/2023
Selected Average Balances:
Loans
$
6,542,532
$
6,496,732
$
6,398,838
$
6,263,971
$
6,230,336
$
6,479,598
$
6,223,396
Investment securities
873,212
881,190
884,775
897,437
962,607
879,701
1,177,762
Interest-earning assets
7,824,773
7,733,097
7,629,120
7,683,495
7,676,895
7,729,346
7,667,911
Cash and cash equivalents
431,632
374,176
364,375
558,473
513,250
390,213
283,032
Goodwill and other intangibles, net
390,453
392,171
393,961
395,158
397,052
392,189
399,100
Total assets
8,596,812
8,481,186
8,380,595
8,415,169
8,417,456
8,486,602
8,404,999
Deposits
7,247,321
7,183,777
7,112,971
7,189,650
7,156,577
7,181,597
7,052,978
Interest-bearing liabilities
5,653,259
5,658,642
5,509,882
5,358,445
5,385,292
5,607,430
5,329,540
Stockholders’ equity (common)
1,118,242
1,070,379
1,048,596
996,745
983,133
1,079,215
973,509
Selected Ratios: (1)
Book value per common share
$
76.09
$
73.03
$
71.24
$
69.76
$
66.03
$
76.09
$
66.03
Tangible book value per common share
(2)
$
50.29
$
46.84
$
44.91
$
43.28
$
39.18
$
50.29
$
39.18
Return on average assets
1.50
%
1.39
%
1.33
%
1.45
%
0.81
%
1.41
%
0.49
%
Return on average common equity
11.57
11.00
10.66
12.20
6.92
11.09
4.24
Return on average tangible common equity
(2)
17.77
17.36
17.07
20.22
11.62
17.42
7.18
Average equity to average assets
13.01
12.62
12.51
11.84
11.68
12.72
11.58
Stockholders’ equity to assets
13.31
12.75
12.59
12.27
11.58
13.31
11.58
Tangible common equity to tangible assets
(2)
9.21
8.57
8.33
7.98
7.21
9.21
7.21
Net interest margin
3.44
3.35
3.26
3.30
3.16
3.35
3.07
Efficiency ratio
54.57
55.24
58.34
60.41
58.27
55.98
59.16
Effective tax rate
20.39
20.34
19.06
18.06
46.09
19.97
37.30
Selected Asset Quality
Information:
Nonaccrual loans
$
25,565
$
27,838
$
26,677
$
26,625
$
29,507
$
25,565
$
29,507
Other real estate owned
859
1,147
1,245
1,267
2,031
859
2,031
Nonperforming assets
$
26,424
$
28,985
$
27,922
$
27,892
$
31,538
$
26,424
$
31,538
Net loan charge-offs (recoveries)
$
379
$
283
$
13
$
550
$
101
$
675
$
319
Allowance for credit losses-loans to
loans
1.00
%
1.00
%
1.01
%
1.00
%
1.01
%
1.00
%
1.01
%
Net charge-offs to average loans (1)
0.02
0.02
0.00
0.03
0.01
0.01
0.01
Nonperforming loans to total loans
0.39
0.43
0.42
0.42
0.47
0.39
0.47
Nonperforming assets to total assets
0.31
0.34
0.33
0.33
0.37
0.31
0.37
Stock Repurchase Information:
Common stock repurchased ($) (3)
$
—
$
—
$
—
$
—
$
—
$
—
$
1,519
Common stock repurchased (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)
9/30/2024
6/30/2024
3/31/2024
12/31/2023
9/30/2023
Period End Loan Composition
Commercial & industrial
$
1,351,516
$
1,358,152
$
1,307,490
$
1,284,009
$
1,237,789
Owner-occupied commercial real estate
(“CRE”)
920,533
941,137
955,786
956,594
971,397
Agricultural
1,261,152
1,224,885
1,190,371
1,161,531
1,108,261
Commercial
3,533,201
3,524,174
3,453,647
3,402,134
3,317,447
CRE investment
1,226,982
1,198,020
1,188,722
1,142,251
1,130,938
Construction & land development
231,694
247,565
241,730
310,110
326,747
Commercial real estate
1,458,676
1,445,585
1,430,452
1,452,361
1,457,685
Commercial-based loans
4,991,877
4,969,759
4,884,099
4,854,495
4,775,132
Residential construction
85,811
90,904
84,370
75,726
76,289
Residential first mortgage
1,194,574
1,190,790
1,167,069
1,167,109
1,136,748
Residential junior mortgage
223,456
218,512
206,434
200,884
195,432
Residential real estate
1,503,841
1,500,206
1,457,873
1,443,719
1,408,469
Retail & other
61,122
59,169
55,645
55,728
55,656
Retail-based loans
1,564,963
1,559,375
1,513,518
1,499,447
1,464,125
Total loans
$
6,556,840
$
6,529,134
$
6,397,617
$
6,353,942
$
6,239,257
Period End Deposit Composition
Noninterest-bearing demand
$
1,839,617
$
1,764,806
$
1,665,229
$
1,958,709
$
2,020,074
Interest-bearing demand
1,035,593
1,093,621
1,121,030
1,055,520
955,746
Money market
1,928,977
1,963,559
2,027,559
1,891,287
1,933,227
Savings
763,024
762,529
765,084
768,401
789,045
Time
1,692,786
1,656,563
1,586,830
1,523,883
1,484,296
Total deposits
$
7,259,997
$
7,241,078
$
7,165,732
$
7,197,800
$
7,182,388
Brokered transaction accounts
$
159,547
$
250,109
$
265,818
$
166,861
$
146,517
Brokered time deposits
549,907
557,657
517,190
448,582
457,433
Total brokered deposits
$
709,454
$
807,766
$
783,008
$
615,443
$
603,950
Customer transaction accounts
$
5,407,664
$
5,334,406
$
5,313,085
$
5,507,056
$
5,551,575
Customer time deposits
1,142,879
1,098,906
1,069,639
1,075,301
1,026,863
Total customer deposits (core)
$
6,550,543
$
6,433,312
$
6,382,724
$
6,582,357
$
6,578,438
Nicolet Bankshares, Inc.
Net Interest Income and Net Interest
Margin Analysis (Unaudited)
For the Three Months
Ended
September 30, 2024
June 30, 2024
September 30, 2023
Average
Average
Average
Average
Average
Average
(In thousands)
Balance
Interest
Rate
Balance
Interest
Rate
Balance
Interest
Rate
ASSETS
Total loans (1) (2)
$
6,542,532
$
100,962
6.06
%
$
6,496,732
$
98,086
5.99
%
$
6,230,336
$
87,701
5.54
%
Investment securities (2)
873,212
6,666
3.05
%
881,190
6,579
2.99
%
962,607
6,235
2.59
%
Other interest-earning assets
409,029
5,492
5.27
%
355,175
4,695
5.24
%
483,952
6,452
5.23
%
Total interest-earning assets
7,824,773
$
113,120
5.68
%
7,733,097
$
109,360
5.61
%
7,676,895
$
100,388
5.15
%
Other assets, net
772,039
748,089
740,561
Total assets
$
8,596,812
$
8,481,186
$
8,417,456
LIABILITIES AND STOCKHOLDERS'
EQUITY
Interest-bearing core deposits
$
4,723,464
$
32,952
2.78
%
$
4,665,195
$
31,713
2.73
%
$
4,491,858
$
27,628
2.44
%
Brokered deposits
768,058
9,108
4.72
%
831,100
9,673
4.68
%
651,745
7,336
4.47
%
Total interest-bearing deposits
5,491,522
42,060
3.05
%
5,496,295
41,386
3.03
%
5,143,603
34,964
2.70
%
Wholesale funding
161,737
2,196
5.31
%
162,347
2,150
5.24
%
241,689
3,446
5.58
%
Total interest-bearing liabilities
5,653,259
$
44,256
3.11
%
5,658,642
$
43,536
3.09
%
5,385,292
$
38,410
2.83
%
Noninterest-bearing demand deposits
1,755,799
1,687,482
2,012,974
Other liabilities
69,512
64,683
36,057
Stockholders' equity
1,118,242
1,070,379
983,133
Total liabilities and stockholders'
equity
$
8,596,812
$
8,481,186
$
8,417,456
Net interest income and rate spread
$
68,864
2.57
%
$
65,824
2.52
%
$
61,978
2.32
%
Net interest margin
3.44
%
3.35
%
3.16
%
Loan purchase accounting accretion (3)
$
1,527
0.09
%
$
1,527
0.08
%
$
1,637
0.10
%
Loan nonaccrual interest (4)
$
(48
)
0.00
%
$
329
0.02
%
$
(257
)
(0.02
)%
For the Nine Months
Ended
September 30, 2024
September 30, 2023
Average
Average
Average
Average
(In thousands)
Balance
Interest
Rate
Balance
Interest
Rate
ASSETS
Total loans (1) (2)
$
6,479,598
$
292,792
5.95
%
$
6,223,396
$
251,019
5.33
%
Investment securities (2)
879,701
19,442
2.95
%
1,177,762
19,575
2.22
%
Other interest-earning assets
370,047
14,775
5.26
%
266,753
10,345
5.13
%
Total interest-earning assets
7,729,346
$
327,009
5.58
%
7,667,911
$
280,939
4.85
%
Other assets, net
757,256
737,088
Total assets
$
8,486,602
$
8,404,999
LIABILITIES AND STOCKHOLDERS'
EQUITY
Interest-bearing core deposits
$
4,684,586
$
95,921
2.74
%
$
4,365,843
$
69,943
2.14
%
Brokered deposits
759,791
26,515
4.66
%
619,870
19,298
4.16
%
Total interest-bearing deposits
5,444,377
122,436
3.00
%
4,985,713
89,241
2.39
%
Wholesale funding
163,053
6,580
5.30
%
343,827
12,842
4.93
%
Total interest-bearing liabilities
5,607,430
$
129,016
3.07
%
5,329,540
$
102,083
2.56
%
Noninterest-bearing demand deposits
1,737,220
2,067,265
Other liabilities
62,737
34,685
Stockholders' equity
1,079,215
973,509
Total liabilities and stockholders'
equity
$
8,486,602
$
8,404,999
Net interest income and rate spread
$
197,993
2.51
%
$
178,856
2.29
%
Net interest margin
3.35
%
3.07
%
Loan purchase accounting accretion (3)
$
4,582
0.09
%
$
4,908
0.10
%
(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 interest above, and the related impact to
net interest margin.
(4)
Loan nonaccrual interest included in Total
loans interest above, and the related impact to net interest
margin.
Nicolet Bankshares, Inc.
Reconciliation of Non-GAAP Financial
Measures (Unaudited)
For the Three Months
Ended
For the Nine Months
Ended
(In thousands, except per share data)
9/30/2024
6/30/2024
3/31/2024
12/31/2023
9/30/2023
9/30/2024
9/30/2023
Adjusted net income reconciliation:
(1)
Net income (GAAP)
$
32,516
$
29,273
$
27,790
$
30,661
$
17,158
$
89,579
$
30,855
Adjustments:
Provision expense (2)
—
—
—
—
—
—
2,340
Assets (gains) losses, net (3)
(1,177
)
(616
)
(1,909
)
(5,947
)
(31
)
(3,702
)
38,755
Merger-related expense
—
—
—
—
—
—
189
Contract termination charge
—
—
—
2,689
—
—
—
Adjustments subtotal
(1,177
)
(616
)
(1,909
)
(3,258
)
(31
)
(3,702
)
41,284
Tax on Adjustments (4)
(230
)
(120
)
(372
)
(635
)
(6
)
(722
)
8,050
Tax - Wisconsin Tax Law Change (4)
—
—
—
—
6,151
—
9,118
Adjusted net income (Non-GAAP)
$
31,569
$
28,777
$
26,253
$
28,038
$
23,284
$
86,599
$
73,207
Diluted earnings per common share:
Diluted earnings per common share
(GAAP)
$
2.10
$
1.92
$
1.82
$
2.02
$
1.14
$
5.84
$
2.05
Adjusted Diluted earnings per common share
(Non-GAAP)
$
2.04
$
1.88
$
1.72
$
1.85
$
1.54
$
5.65
$
4.87
Tangible assets: (5)
Total assets
$
8,637,118
$
8,557,017
$
8,446,662
$
8,468,678
$
8,416,162
Goodwill and other intangibles, net
389,727
391,421
393,183
394,366
396,208
Tangible assets
$
8,247,391
$
8,165,596
$
8,053,479
$
8,074,312
$
8,019,954
Tangible common equity: (5)
Stockholders’ equity (common)
$
1,149,327
$
1,091,413
$
1,063,655
$
1,039,007
$
974,461
Goodwill and other intangibles, net
389,727
391,421
393,183
394,366
396,208
Tangible common equity
$
759,600
$
699,992
$
670,472
$
644,641
$
578,253
Tangible average common equity:
(5)
Average stockholders’ equity (common)
$
1,118,242
$
1,070,379
$
1,048,596
$
996,745
$
983,133
$
1,079,215
$
973,509
Average goodwill and other intangibles,
net
390,453
392,171
393,961
395,158
397,052
392,189
399,100
Average tangible common equity
$
727,789
$
678,208
$
654,635
$
601,587
$
586,081
$
687,026
$
574,409
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)
Includes the gains / (losses) on other
assets and investments, as well as the impact of the March 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.
(4)
In July 2023, a new Wisconsin tax law
change 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. The effective tax rate for
periods prior to the July 1, 2023, effective date of this 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%. 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/20241015801637/en/
ir@nicoletbank.com
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