GREEN BAY, Wis.--(BUSINESS WIRE)--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. |
Contacts
ir@nicoletbank.com
