NIC Nicolet Bankshares Inc

• Net income of $31 million or adjusted net income (non-GAAP) of $28 million for fourth quarter 2023, compared to net income of $17 million or adjusted net income (non-GAAP) of $23 million in prior quarter, and net income of $28 million or adjusted net income (non-GAAP) of $28 million for fourth quarter 2022
• Net income of $62 million and adjusted net income (non-GAAP) of $101 million for 2023, compared to $94 million and adjusted net income (non-GAAP) of $99 million for 2022, significantly impacted by first quarter balance sheet repositioning
• Quarterly net interest margin of 3.30%, an increase of 14 bps over third quarter
• Solid quarter-over-quarter loan growth of $115 million (2%)
• Tangible common equity ratio increased to 7.98% at year-end 2023

Nicolet Bankshares, Inc. (NYSE: NIC) (“Nicolet”) announced fourth quarter 2023 net income of $31 million and earnings per diluted common share of $2.02, compared to net income of $17 million and earnings per diluted common share of $1.14 for third quarter 2023, and net income of $28 million and earnings per diluted common share of $1.83 for fourth quarter 2022. Net income for the year ended December 31, 2023 was $62 million and earnings per diluted common share of $4.08, compared to net income of $94 million and earnings per diluted common share of $6.56 for the year ended December 31, 2022.

Net income reflected certain non-core items and the related tax effect of each, including the first quarter U.S. Treasury securities sale loss, the change in Wisconsin state tax law that impacted the third quarter, expected loss (provision expense) on a bank subordinated debt investment, a fourth quarter early contract termination charge, merger-related expenses, Day 2 credit provision expense required under the CECL model, as well as gains / (losses) on other assets and investments. These non-core items positively impacted earnings per diluted common share $0.17 for fourth quarter 2023, compared to a negative impact of $0.40 for third quarter 2023, and $0.01 for fourth quarter 2022. For the year ended December 31, 2023, these non-core items negatively impacted earnings per diluted common share $2.64, and negatively impacted earnings per diluted common share $0.34 for full year 2022.

“I’m pleased to say Nicolet produced the highest quarterly core net income in our 23-year history,” said Mike Daniels, Chairman, President and CEO of Nicolet. “The actions we took this year to position Nicolet for long-term success came to fruition as the year ended. We saw strong loan growth, solid growth in fee income, resilience in our credit quality, and a continued increase in net interest margin.”

Daniels continued, “2023 was not the year we thought it would be, but we certainly made the most of the year it became. Our employees continue to shine during macroeconomic uncertainty, which shows in the fact that we grew organically in all three main revenue areas (commercial, retail, and wealth). Our value proposition and entrepreneurial spirit continue to resonate in the communities we serve. The proactive balance sheet repositioning at the beginning of the year produced the results we thought it would, as we have a clean balance sheet and a rising net interest margin. The results we saw at the end of this year give us confidence that we are well positioned to maintain our momentum into 2024. Lastly, I’d be remiss to not thank my co-founder, Bob Atwell, for his contributions to Nicolet over the past 23 years. While his transition from Chairman is complete, we look forward to his ongoing commitment and energy as a Board member to this organization.”

Nicolet’s 2023 results were impacted by the Wisconsin State Budget signed in July 2023 and retroactive to January 1, 2023, which included language that provides financial institutions with an exemption from state taxable income for interest, fees, and penalties earned on loans to existing Wisconsin-based business or agriculture purpose loans that are $5 million or less in balance on January 1, 2023, and to new loans that meet the criteria. The impact of this tax law change to Nicolet moving forward will be a reduction / elimination of State income taxes being expensed, resulting in an estimated effective tax rate of 19.5% (compared to a 25% effective tax rate previously). However, the elimination of State income tax expense also required a valuation allowance to be established for the State-related deferred tax asset as of the effective date of the legislation, and a one-time $9.1 million charge to state income tax expense was recognized in third quarter to establish this valuation allowance.

Nicolet’s financial performance and certain balance sheet line items also were impacted by the timing and size of Nicolet’s August 2022 acquisition of Charter Bankshares, Inc. (“Charter”). Certain income statement results, average balances, and related ratios for 2022 include contributions from Charter from the acquisition date. At acquisition, Charter added assets of $1.1 billion, loans of $827 million, and deposits of $869 million.

Balance Sheet Review

At December 31, 2023, period end assets were $8.5 billion, an increase of $53 million (1%) from September 30, 2023, mostly growth in loans, partly offset by lower cash balances. Total loans increased $115 million (2%) from September 30, 2023, with growth in agricultural, commercial and industrial, and residential real estate loans. Total deposits of $7.2 billion at December 31, 2023, increased slightly ($15 million) from September 30, 2023. Total borrowings declined $31 million due to the early redemption of one subordinated note issuance. Total capital was $1.0 billion at December 31, 2023, an increase of $65 million over September 30, 2023, with earnings and favorable market valuations on available for sale securities, partly offset by the quarterly common stock dividend.

Asset Quality

Nonperforming assets were $28 million and represented 0.33% of total assets at December 31, 2023, compared to $32 million or 0.37% at September 30, 2023, and $40 million or 0.46% at December 31, 2022. The allowance for credit losses-loans was $64 million and represented 1.00% of total loans at December 31, 2023, compared to $63 million (or 1.01% of total loans) at September 30, 2023, and $62 million (or 1.00% of total loans) at December 31, 2022. Asset quality trends remain solid and loan net charge-offs were negligible.

Income Statement Review - Year

Net income was $62 million and adjusted net income (non-GAAP) was $101 million for the year ended December 31, 2023, compared to net income of $94 million and adjusted net income (non-GAAP) was $99 million for the year ended December 31, 2022.

Net interest income was $242 million for the year ended December 31, 2023, up $2 million from the year ended December 31, 2022, the net of $109 million higher interest income and $107 million higher interest expense. The higher interest income was largely attributable to the repricing of new and renewed loans in a rising interest rate environment, as well as the reinvestment of security sales and maturities (mostly U.S. Treasury securities) into investable cash balances at higher rates. The increase in interest expense was due to both higher average balances and higher average rates, reflecting the rising interest rate environment as well as a shift to higher rate deposit products. The net interest margin for 2023 was 3.18%, down 22 bps from 3.40% for 2022. The yield on interest-earning assets increased 114 bps (to 5.02%) due to the rising interest rate environment, as well as the sales and maturities of securities reinvested as investable cash, while the cost of funds increased 194 bps (to 2.65%) for 2023, attributable mainly to the repricing of deposits and funding in the higher interest rate environment.

Noninterest income of $36 million for full year 2023 was down $22 million from full year 2022, significantly impacted by the first quarter balance sheet repositioning. Excluding net asset gains (losses), noninterest income for 2023 was $69 million, a $14 million increase over 2022. The year-over-year increase included higher wealth revenue (from growth in accounts and assets under management) and card interchange income, a favorable change in the fair value of nonqualified deferred compensation plan assets, and higher net LSR income, partly offset by lower net mortgage income.

Noninterest expense of $186 million for full year 2023 reflected an increase of $25 million over 2022. Personnel expense increased $10 million due to higher salaries and fringe benefits (mostly health insurance). Non-personnel expenses increased $15 million year-over-year mostly data processing (including a $3 million early contract termination charge and higher volume-based system processing) and office expense.

Income tax expense was $25 million (effective tax rate 28.99%) for the year ended December 31, 2023, compared to $31 million (effective tax rate 25.03%) for the year ended December 31, 2022. The change in income tax expense included a $9.1 million charge to income tax expense to establish a tax valuation allowance for the Wisconsin tax law change noted above.

Income Statement Review - Quarter

Net income was $31 million and adjusted net income (non-GAAP) was $28 million for fourth quarter 2023, compared to net income of $17 million and adjusted net income (non-GAAP) of $23 million for third quarter 2023.

Net interest income was $64 million for fourth quarter 2023, up $3 million from third quarter 2023. Interest income increased $4 million mostly due to the repricing of new and renewed loans in a rising interest rate environment, while interest expense increased $1 million due to both higher average funding balances and higher average rates. The net interest margin for fourth quarter 2023 was 3.30%, up 14 bps from 3.16% for third quarter 2023. The yield on interest-earning assets increased 17 bps (to 5.32%) due to the sale of U.S. Treasury securities reinvested as investable cash, as well as the rising interest rate environment, while the cost of funds increased 7 bps (to 2.90%) for fourth quarter 2023, attributable mainly to the repricing of deposits and funding in the higher interest rate environment.

Noninterest income of $24 million for fourth quarter 2023 increased $8 million over third quarter 2023, mostly due net asset gains of $6 million in fourth quarter 2023, which included a $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 fourth quarter 2023 was $18 million, a $2 million increase from third quarter 2023, mostly due to favorable changes in the fair value of nonqualified deferred compensation plan assets.

Noninterest expense of $50 million for fourth quarter 2023, increased $5 million over third quarter 2023. Personnel expense increased $3 million on higher health insurance and an increase in the fair value of nonqualified deferred compensation plan liabilities. Non-personnel expenses increased $2 million (7%) between the sequential quarters, mostly higher data processing (from the early contract termination charged noted above).

Income tax expense was $7 million (effective tax rate 18.06%) for fourth quarter 2023, compared to $15 million (effective tax rate 46.09%) for third quarter 2023. Third quarter 2023 income tax expense included a $9.1 million charge to income tax expense to establish a tax valuation allowance, partly offset by a $3.0 million reduction to income tax expense to reverse amounts recorded in the first half of 2023, both related to the Wisconsin tax law change noted above.

About Nicolet Bankshares, Inc.

Nicolet Bankshares, Inc. is the bank holding company of Nicolet National Bank, a growing, full-service, community bank providing services ranging from commercial, agricultural and consumer banking to wealth management and retirement plan services. Founded in Green Bay in 2000, Nicolet National Bank operates branches in 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 our expected future effective tax rate.

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 2022 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)

 

12/31/2023

 

9/30/2023

 

6/30/2023

 

3/31/2023

 

12/31/2022

Assets

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

129,898

 

 

$

109,414

 

 

$

122,021

 

 

$

93,462

 

 

$

121,211

 

Interest-earning deposits

 

 

361,533

 

 

 

436,466

 

 

 

383,185

 

 

 

20,718

 

 

 

33,512

 

Cash and cash equivalents

 

 

491,431

 

 

 

545,880

 

 

 

505,206

 

 

 

114,180

 

 

 

154,723

 

Certificates of deposit in other banks

 

 

6,374

 

 

 

7,598

 

 

 

9,808

 

 

 

11,293

 

 

 

12,518

 

Securities available for sale, at fair value

 

 

802,573

 

 

 

793,826

 

 

 

921,108

 

 

 

1,023,176

 

 

 

917,618

 

Securities held to maturity, at amortized cost

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

679,128

 

Other investments

 

 

57,560

 

 

 

58,367

 

 

 

57,578

 

 

 

57,482

 

 

 

65,286

 

Loans held for sale

 

 

4,160

 

 

 

6,500

 

 

 

3,849

 

 

 

4,962

 

 

 

1,482

 

Loans

 

 

6,353,942

 

 

 

6,239,257

 

 

 

6,222,776

 

 

 

6,223,732

 

 

 

6,180,499

 

Allowance for credit losses - loans

 

 

(63,610

)

 

 

(63,160

)

 

 

(62,811

)

 

 

(62,412

)

 

 

(61,829

)

Loans, net

 

 

6,290,332

 

 

 

6,176,097

 

 

 

6,159,965

 

 

 

6,161,320

 

 

 

6,118,670

 

Premises and equipment, net

 

 

118,756

 

 

 

117,744

 

 

 

117,278

 

 

 

112,569

 

 

 

108,956

 

Bank owned life insurance (“BOLI”)

 

 

169,392

 

 

 

168,223

 

 

 

167,192

 

 

 

166,107

 

 

 

165,137

 

Goodwill and other intangibles, net

 

 

394,366

 

 

 

396,208

 

 

 

398,194

 

 

 

400,277

 

 

 

402,438

 

Accrued interest receivable and other assets

 

 

133,734

 

 

 

145,719

 

 

 

142,450

 

 

 

140,988

 

 

 

138,013

 

Total assets

 

$

8,468,678

 

 

$

8,416,162

 

 

$

8,482,628

 

 

$

8,192,354

 

 

$

8,763,969

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

$

1,958,709

 

 

$

2,020,074

 

 

$

2,059,939

 

 

$

2,094,623

 

 

$

2,361,816

 

Interest-bearing deposits

 

 

5,239,091

 

 

 

5,162,314

 

 

 

5,138,665

 

 

 

4,833,956

 

 

 

4,817,105

 

Total deposits

 

 

7,197,800

 

 

 

7,182,388

 

 

 

7,198,604

 

 

 

6,928,579

 

 

 

7,178,921

 

Short-term borrowings

 

 

—

 

 

 

—

 

 

 

50,000

 

 

 

50,000

 

 

 

317,000

 

Long-term borrowings

 

 

166,930

 

 

 

197,754

 

 

 

197,577

 

 

 

197,448

 

 

 

225,342

 

Accrued interest payable and other liabilities

 

 

64,941

 

 

 

61,559

 

 

 

58,809

 

 

 

54,535

 

 

 

70,177

 

Total liabilities

 

 

7,429,671

 

 

 

7,441,701

 

 

 

7,504,990

 

 

 

7,230,562

 

 

 

7,791,440

 

Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

149

 

 

 

147

 

 

 

147

 

 

 

147

 

 

 

147

 

Additional paid-in capital

 

 

633,770

 

 

 

626,348

 

 

 

624,897

 

 

 

623,746

 

 

 

621,988

 

Retained earnings

 

 

458,261

 

 

 

431,317

 

 

 

417,863

 

 

 

398,966

 

 

 

407,864

 

Accumulated other comprehensive income (loss)

 

 

(53,173

)

 

 

(83,351

)

 

 

(65,269

)

 

 

(61,067

)

 

 

(57,470

)

Total stockholders' equity

 

 

1,039,007

 

 

 

974,461

 

 

 

977,638

 

 

 

961,792

 

 

 

972,529

 

Total liabilities and stockholders' equity

 

$

8,468,678

 

 

$

8,416,162

 

 

$

8,482,628

 

 

$

8,192,354

 

 

$

8,763,969

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

 

14,894,209

 

 

 

14,757,565

 

 

 

14,717,938

 

 

 

14,698,265

 

 

 

14,690,614

 

Nicolet Bankshares, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Income (Loss) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Years Ended

(In thousands, except per share data)

 

12/31/2023

 

9/30/2023

 

6/30/2023

 

3/31/2023

 

12/31/2022

 

12/31/2023

 

12/31/2022

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including loan fees

 

$

90,265

 

$

87,657

 

 

$

84,091

 

 

$

79,142

 

 

$

76,367

 

 

$

341,155

 

 

$

243,680

 

Taxable investment securities

 

 

4,737

 

 

4,351

 

 

 

4,133

 

 

 

4,961

 

 

 

5,771

 

 

 

18,182

 

 

 

21,383

 

Tax-exempt investment securities

 

 

1,394

 

 

1,424

 

 

 

1,476

 

 

 

1,737

 

 

 

1,915

 

 

 

6,031

 

 

 

4,418

 

Other interest income

 

 

7,149

 

 

6,452

 

 

 

2,357

 

 

 

1,536

 

 

 

1,703

 

 

 

17,494

 

 

 

4,437

 

Total interest income

 

 

103,545

 

 

99,884

 

 

 

92,057

 

 

 

87,376

 

 

 

85,756

 

 

 

382,862

 

 

 

273,918

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

36,583

 

 

34,964

 

 

 

29,340

 

 

 

24,937

 

 

 

12,512

 

 

 

125,824

 

 

 

21,752

 

Short-term borrowings

 

 

—

 

 

474

 

 

 

1,108

 

 

 

3,212

 

 

 

2,624

 

 

 

4,794

 

 

 

3,246

 

Long-term borrowings

 

 

2,680

 

 

2,972

 

 

 

2,570

 

 

 

2,506

 

 

 

2,528

 

 

 

10,728

 

 

 

8,959

 

Total interest expense

 

 

39,263

 

 

38,410

 

 

 

33,018

 

 

 

30,655

 

 

 

17,664

 

 

 

141,346

 

 

 

33,957

 

Net interest income

 

 

64,282

 

 

61,474

 

 

 

59,039

 

 

 

56,721

 

 

 

68,092

 

 

 

241,516

 

 

 

239,961

 

Provision for credit losses

 

 

1,000

 

 

450

 

 

 

450

 

 

 

3,090

 

 

 

1,850

 

 

 

4,990

 

 

 

11,500

 

Net interest income after provision for credit losses

 

 

63,282

 

 

61,024

 

 

 

58,589

 

 

 

53,631

 

 

 

66,242

 

 

 

236,526

 

 

 

228,461

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wealth management fee income

 

 

6,308

 

 

6,057

 

 

 

5,870

 

 

 

5,512

 

 

 

5,170

 

 

 

23,747

 

 

 

20,870

 

Mortgage income, net

 

 

1,856

 

 

2,020

 

 

 

1,822

 

 

 

1,466

 

 

 

1,311

 

 

 

7,164

 

 

 

8,497

 

Service charges on deposit accounts

 

 

1,475

 

 

1,492

 

 

 

1,529

 

 

 

1,480

 

 

 

1,502

 

 

 

5,976

 

 

 

6,104

 

Card interchange income

 

 

3,306

 

 

3,321

 

 

 

3,331

 

 

 

3,033

 

 

 

3,100

 

 

 

12,991

 

 

 

11,643

 

BOLI income

 

 

1,161

 

 

1,090

 

 

 

1,073

 

 

 

1,200

 

 

 

1,151

 

 

 

4,524

 

 

 

3,818

 

Asset gains (losses), net

 

 

5,947

 

 

31

 

 

 

(318

)

 

 

(38,468

)

 

 

260

 

 

 

(32,808

)

 

 

3,130

 

Deferred compensation plan asset market valuations

 

 

949

 

 

(457

)

 

 

499

 

 

 

946

 

 

 

314

 

 

 

1,937

 

 

 

(2,040

)

LSR income, net

 

 

1,027

 

 

1,108

 

 

 

1,135

 

 

 

1,155

 

 

 

(324

)

 

 

4,425

 

 

 

(1,366

)

Other noninterest income

 

 

2,405

 

 

1,879

 

 

 

1,900

 

 

 

1,832

 

 

 

2,362

 

 

 

8,016

 

 

 

7,264

 

Total noninterest income

 

 

24,434

 

 

16,541

 

 

 

16,841

 

 

 

(21,844

)

 

 

14,846

 

 

 

35,972

 

 

 

57,920

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel expense

 

 

26,937

 

 

23,944

 

 

 

23,900

 

 

 

24,328

 

 

 

23,705

 

 

 

99,109

 

 

 

88,713

 

Occupancy, equipment and office

 

 

9,567

 

 

9,027

 

 

 

8,845

 

 

 

8,783

 

 

 

8,246

 

 

 

36,222

 

 

 

29,722

 

Business development and marketing

 

 

1,854

 

 

1,869

 

 

 

1,946

 

 

 

2,121

 

 

 

2,303

 

 

 

7,790

 

 

 

8,472

 

Data processing

 

 

7,043

 

 

4,643

 

 

 

4,218

 

 

 

3,988

 

 

 

3,871

 

 

 

19,892

 

 

 

14,518

 

Intangibles amortization

 

 

1,842

 

 

1,986

 

 

 

2,083

 

 

 

2,161

 

 

 

2,217

 

 

 

8,072

 

 

 

6,616

 

FDIC assessments

 

 

950

 

 

1,500

 

 

 

1,009

 

 

 

540

 

 

 

480

 

 

 

3,999

 

 

 

1,920

 

Merger-related expense

 

 

—

 

 

—

 

 

 

26

 

 

 

163

 

 

 

492

 

 

 

189

 

 

 

1,664

 

Other noninterest expense

 

 

2,103

 

 

2,769

 

 

 

2,930

 

 

 

2,791

 

 

 

2,675

 

 

 

10,593

 

 

 

9,019

 

Total noninterest expense

 

 

50,296

 

 

45,738

 

 

 

44,957

 

 

 

44,875

 

 

 

43,989

 

 

 

185,866

 

 

 

160,644

 

Income (loss) before income tax expense

 

 

37,420

 

 

31,827

 

 

 

30,473

 

 

 

(13,088

)

 

 

37,099

 

 

 

86,632

 

 

 

125,737

 

Income tax expense (benefit)

 

 

6,759

 

 

14,669

 

 

 

7,878

 

 

 

(4,190

)

 

 

9,498

 

 

 

25,116

 

 

 

31,477

 

Net income (loss)

 

$

30,661

 

$

17,158

 

 

$

22,595

 

 

$

(8,898

)

 

$

27,601

 

 

$

61,516

 

 

$

94,260

 

Earnings (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

2.07

 

$

1.16

 

 

$

1.54

 

 

$

(0.61

)

 

$

1.88

 

 

$

4.17

 

 

$

6.78

 

Diluted

 

$

2.02

 

$

1.14

 

 

$

1.51

 

 

$

(0.61

)

 

$

1.83

 

 

$

4.08

 

 

$

6.56

 

Common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average

 

 

14,823

 

 

14,740

 

 

 

14,711

 

 

 

14,694

 

 

 

14,685

 

 

 

14,743

 

 

 

13,909

 

Diluted weighted average

 

 

15,142

 

 

15,100

 

 

 

14,960

 

 

 

14,694

 

 

 

15,110

 

 

 

15,071

 

 

 

14,375

 

Nicolet Bankshares, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Financial Summary (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Years Ended

(In thousands, except share & per share data)

 

12/31/2023

 

9/30/2023

 

6/30/2023

 

3/31/2023

 

12/31/2022

 

12/31/2023

 

12/31/2022

Selected Average Balances:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

6,263,971

 

 

$

6,230,336

 

 

$

6,237,757

 

 

$

6,201,780

 

 

$

6,087,146

 

 

$

6,233,623

 

 

$

5,255,646

 

Investment securities

 

 

897,437

 

 

 

962,607

 

 

 

1,068,144

 

 

 

1,508,535

 

 

 

1,701,531

 

 

 

1,107,105

 

 

 

1,619,272

 

Interest-earning assets

 

 

7,683,495

 

 

 

7,676,895

 

 

 

7,497,935

 

 

 

7,830,590

 

 

 

7,963,485

 

 

 

7,671,839

 

 

 

7,107,449

 

Cash and cash equivalents

 

 

558,473

 

 

 

513,250

 

 

 

203,883

 

 

 

127,726

 

 

 

179,381

 

 

 

352,458

 

 

 

281,849

 

Goodwill and other intangibles, net

 

 

395,158

 

 

 

397,052

 

 

 

399,080

 

 

 

401,212

 

 

 

403,243

 

 

 

398,106

 

 

 

361,471

 

Total assets

 

 

8,415,169

 

 

 

8,417,456

 

 

 

8,228,600

 

 

 

8,570,623

 

 

 

8,688,741

 

 

 

8,407,562

 

 

 

7,837,695

 

Deposits

 

 

7,189,650

 

 

 

7,156,577

 

 

 

6,941,037

 

 

 

7,060,262

 

 

 

7,222,415

 

 

 

7,087,427

 

 

 

6,613,924

 

Interest-bearing liabilities

 

 

5,358,445

 

 

 

5,385,292

 

 

 

5,212,285

 

 

 

5,391,107

 

 

 

5,262,278

 

 

 

5,336,825

 

 

 

4,776,924

 

Stockholders’ equity (common)

 

 

996,745

 

 

 

983,133

 

 

 

967,142

 

 

 

970,108

 

 

 

954,970

 

 

 

979,366

 

 

 

886,385

 

Selected Ratios: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per common share

 

$

69.76

 

 

$

66.03

 

 

$

66.42

 

 

$

65.44

 

 

$

66.20

 

 

$

69.76

 

 

$

66.20

 

Tangible book value per common share (2)

 

$

43.28

 

 

$

39.18

 

 

$

39.37

 

 

$

38.20

 

 

$

38.81

 

 

$

43.28

 

 

$

38.81

 

Return on average assets

 

 

1.45

%

 

 

0.81

%

 

 

1.10

%

 

 

(0.42

) %

 

 

1.26

%

 

 

0.73

%

 

 

1.20

%

Return on average common equity

 

 

12.20

 

 

 

6.92

 

 

 

9.37

 

 

 

(3.72

)

 

 

11.47

 

 

 

6.28

 

 

 

10.63

 

Return on average tangible common equity (2)

 

 

20.22

 

 

 

11.62

 

 

 

15.95

 

 

 

(6.34

)

 

 

19.85

 

 

 

10.58

 

 

 

17.96

 

Average equity to average assets

 

 

11.84

 

 

 

11.68

 

 

 

11.75

 

 

 

11.32

 

 

 

10.99

 

 

 

11.65

 

 

 

11.31

 

Stockholders’ equity to assets

 

 

12.27

 

 

 

11.58

 

 

 

11.53

 

 

 

11.74

 

 

 

11.10

 

 

 

12.27

 

 

 

11.10

 

Tangible common equity to tangible assets (2)

 

 

7.98

 

 

 

7.21

 

 

 

7.17

 

 

 

7.21

 

 

 

6.82

 

 

 

7.98

 

 

 

6.82

 

Net interest margin

 

 

3.30

 

 

 

3.16

 

 

 

3.14

 

 

 

2.91

 

 

 

3.39

 

 

 

3.18

 

 

 

3.40

 

Efficiency ratio

 

 

60.41

 

 

 

58.27

 

 

 

58.60

 

 

 

60.69

 

 

 

52.79

 

 

 

59.50

 

 

 

54.15

 

Effective tax rate

 

 

18.06

 

 

 

46.09

 

 

 

25.85

 

 

 

32.01

 

 

 

25.60

 

 

 

28.99

 

 

 

25.03

 

Selected Asset Quality Information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

26,625

 

 

$

29,507

 

 

$

25,278

 

 

$

38,895

 

 

$

38,080

 

 

$

26,625

 

 

$

38,080

 

Other real estate owned - closed branches

 

 

808

 

 

 

884

 

 

 

958

 

 

 

1,347

 

 

 

1,347

 

 

 

808

 

 

 

1,347

 

Other real estate owned

 

 

459

 

 

 

1,147

 

 

 

520

 

 

 

628

 

 

 

628

 

 

 

459

 

 

 

628

 

Nonperforming assets

 

$

27,892

 

 

$

31,538

 

 

$

26,756

 

 

$

40,870

 

 

$

40,055

 

 

$

27,892

 

 

$

40,055

 

Net loan charge-offs (recoveries)

 

$

550

 

 

$

101

 

 

$

51

 

 

$

167

 

 

$

597

 

 

$

869

 

 

$

730

 

Allowance for credit losses-loans to loans

 

 

1.00

%

 

 

1.01

%

 

 

1.01

%

 

 

1.00

%

 

 

1.00

%

 

 

1.00

%

 

 

1.00

%

Net loan charge-offs to average loans (1)

 

 

0.03

 

 

 

0.01

 

 

 

0.01

 

 

 

0.01

 

 

 

0.04

 

 

 

0.01

 

 

 

0.01

 

Nonperforming loans to total loans

 

 

0.42

 

 

 

0.47

 

 

 

0.41

 

 

 

0.62

 

 

 

0.62

 

 

 

0.42

 

 

 

0.62

 

Nonperforming assets to total assets

 

 

0.33

 

 

 

0.37

 

 

 

0.32

 

 

 

0.50

 

 

 

0.46

 

 

 

0.33

 

 

 

0.46

 

Stock Repurchase Information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock repurchased (dollars) (3)

 

$

—

 

 

$

—

 

 

$

1,519

 

 

$

—

 

 

$

786

 

 

$

1,519

 

 

$

61,483

 

Common stock repurchased (full shares) (3)

 

 

—

 

 

 

—

 

 

 

26,853

 

 

 

—

 

 

 

10,000

 

 

 

26,853

 

 

 

671,662

 

(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)

 

12/31/2023

 

9/30/2023

 

6/30/2023

 

3/31/2023

 

12/31/2022

Period End Loan Composition

 

 

 

 

 

 

 

 

 

 

Commercial & industrial

 

$

1,284,009

 

$

1,237,789

 

$

1,318,567

 

$

1,330,052

 

$

1,304,819

Owner-occupied commercial real estate (“CRE”)

 

 

956,594

 

 

971,397

 

 

969,202

 

 

969,064

 

 

954,599

Agricultural

 

 

1,161,531

 

 

1,108,261

 

 

1,068,999

 

 

1,065,909

 

 

1,088,607

Commercial

 

 

3,402,134

 

 

3,317,447

 

 

3,356,768

 

 

3,365,025

 

 

3,348,025

CRE investment

 

 

1,142,251

 

 

1,130,938

 

 

1,108,692

 

 

1,146,388

 

 

1,149,949

Construction & land development

 

 

310,110

 

 

326,747

 

 

337,389

 

 

333,370

 

 

318,600

Commercial real estate

 

 

1,452,361

 

 

1,457,685

 

 

1,446,081

 

 

1,479,758

 

 

1,468,549

Commercial-based loans

 

 

4,854,495

 

 

4,775,132

 

 

4,802,849

 

 

4,844,783

 

 

4,816,574

Residential construction

 

 

75,726

 

 

76,289

 

 

108,095

 

 

134,782

 

 

114,392

Residential first mortgage

 

 

1,167,109

 

 

1,136,748

 

 

1,072,609

 

 

1,014,166

 

 

1,016,935

Residential junior mortgage

 

 

200,884

 

 

195,432

 

 

184,873

 

 

177,026

 

 

177,332

Residential real estate

 

 

1,443,719

 

 

1,408,469

 

 

1,365,577

 

 

1,325,974

 

 

1,308,659

Retail & other

 

 

55,728

 

 

55,656

 

 

54,350

 

 

52,975

 

 

55,266

Retail-based loans

 

 

1,499,447

 

 

1,464,125

 

 

1,419,927

 

 

1,378,949

 

 

1,363,925

Total loans

 

$

6,353,942

 

$

6,239,257

 

$

6,222,776

 

$

6,223,732

 

$

6,180,499

 

 

 

 

 

 

 

 

 

 

 

Period End Deposit Composition

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

$

1,958,709

 

$

2,020,074

 

$

2,059,939

 

$

2,094,623

 

$

2,361,816

Interest-bearing demand

 

 

1,055,520

 

 

955,746

 

 

1,030,919

 

 

1,138,415

 

 

1,279,850

Money market

 

 

1,891,287

 

 

1,933,227

 

 

1,835,523

 

 

1,886,879

 

 

1,707,619

Savings

 

 

768,401

 

 

789,045

 

 

821,803

 

 

865,824

 

 

931,417

Time

 

 

1,523,883

 

 

1,484,296

 

 

1,450,420

 

 

942,838

 

 

898,219

Total deposits

 

$

7,197,800

 

$

7,182,388

 

$

7,198,604

 

$

6,928,579

 

$

7,178,921

Brokered transaction accounts

 

$

166,861

 

$

146,517

 

$

173,107

 

$

233,393

 

$

252,829

Brokered time deposits

 

 

448,582

 

 

457,433

 

 

566,405

 

 

289,181

 

 

339,066

Total brokered deposits

 

$

615,443

 

$

603,950

 

$

739,512

 

$

522,574

 

$

591,895

Customer transaction accounts

 

$

5,507,056

 

$

5,551,575

 

$

5,575,077

 

$

5,752,348

 

$

6,027,873

Customer time deposits

 

 

1,075,301

 

 

1,026,863

 

 

884,015

 

 

653,657

 

 

559,153

Total customer deposits (core)

 

$

6,582,357

 

$

6,578,438

 

$

6,459,092

 

$

6,406,005

 

$

6,587,026

Nicolet Bankshares, Inc.

 

 

 

 

 

 

 

 

 

 

Net Interest Income and Net Interest Margin Analysis (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

December 31, 2023

 

September 30, 2023

 

December 31, 2022

 

 

Average

 

 

 

Average

 

Average

 

 

 

Average

 

Average

 

 

 

Average

(In thousands)

 

Balance

 

Interest

 

Rate

 

Balance

 

Interest

 

Rate

 

Balance

 

Interest

 

Rate

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans (1) (2)

 

$

6,263,971

 

$

90,313

 

5.66

%

 

$

6,230,336

 

$

87,701

 

5.54

%

 

$

6,087,146

 

$

76,406

 

4.93

%

Investment securities (2)

 

 

897,437

 

 

6,567

 

2.93

%

 

 

962,607

 

 

6,235

 

2.59

%

 

 

1,701,531

 

 

8,302

 

1.95

%

Other interest-earning assets

 

 

522,087

 

 

7,149

 

5.37

%

 

 

483,952

 

 

6,452

 

5.23

%

 

 

174,808

 

 

1,703

 

3.85

%

Total interest-earning assets

 

 

7,683,495

 

$

104,029

 

5.32

%

 

 

7,676,895

 

$

100,388

 

5.15

%

 

 

7,963,485

 

$

86,411

 

4.27

%

Other assets, net

 

 

731,674

 

 

 

 

 

 

740,561

 

 

 

 

 

 

725,256

 

 

 

 

Total assets

 

$

8,415,169

 

 

 

 

 

$

8,417,456

 

 

 

 

 

$

8,688,741

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing core deposits

 

$

4,570,493

 

$

29,730

 

2.58

%

 

$

4,491,858

 

$

27,628

 

2.44

%

 

$

4,175,671

 

$

8,477

 

0.81

%

Brokered deposits

 

 

601,379

 

 

6,853

 

4.52

%

 

 

651,745

 

 

7,336

 

4.47

%

 

 

611,226

 

 

4,035

 

2.62

%

Total interest-bearing deposits

 

 

5,171,872

 

 

36,583

 

2.81

%

 

 

5,143,603

 

 

34,964

 

2.70

%

 

 

4,786,897

 

 

12,512

 

1.04

%

Wholesale funding

 

 

186,573

 

 

2,680

 

5.62

%

 

 

241,689

 

 

3,446

 

5.58

%

 

 

475,381

 

 

5,152

 

4.27

%

Total interest-bearing liabilities

 

 

5,358,445

 

$

39,263

 

2.90

%

 

 

5,385,292

 

$

38,410

 

2.83

%

 

 

5,262,278

 

$

17,664

 

1.33

%

Noninterest-bearing demand deposits

 

 

2,017,778

 

 

 

 

 

 

2,012,974

 

 

 

 

 

 

2,435,518

 

 

 

 

Other liabilities

 

 

42,201

 

 

 

 

 

 

36,057

 

 

 

 

 

 

35,975

 

 

 

 

Stockholders' equity

 

 

996,745

 

 

 

 

 

 

983,133

 

 

 

 

 

 

954,970

 

 

 

 

Total liabilities and stockholders' equity

 

$

8,415,169

 

 

 

 

 

$

8,417,456

 

 

 

 

 

$

8,688,741

 

 

 

 

Net interest income and rate spread

 

 

 

$

64,766

 

2.42

%

 

 

 

$

61,978

 

2.32

%

 

 

 

$

68,747

 

2.94

%

Net interest margin

 

 

 

 

 

3.30

%

 

 

 

 

 

3.16

%

 

 

 

 

 

3.39

%

Loan purchase accounting accretion (3)

 

 

 

$

1,587

 

0.10

%

 

 

 

$

1,637

 

0.10

%

 

 

 

$

1,935

 

0.09

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended

 

 

 

 

 

 

 

 

December 31, 2023

 

December 31, 2022

 

 

 

 

 

 

 

 

Average

 

 

 

Average

 

Average

 

 

 

Average

 

 

 

 

 

 

(In thousands)

 

Balance

 

Interest

 

Rate

 

Balance

 

Interest

 

Rate

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans (1) (2)

 

$

6,233,623

 

$

341,332

 

5.48

%

 

$

5,255,646

 

$

243,819

 

4.64

%

 

 

 

 

 

 

Investment securities (2)

 

 

1,107,105

 

 

26,142

 

2.36

%

 

 

1,619,272

 

 

27,575

 

1.70

%

 

 

 

 

 

 

Other interest-earning assets

 

 

331,111

 

 

17,494

 

5.28

%

 

 

232,531

 

 

4,437

 

1.91

%

 

 

 

 

 

 

Total interest-earning assets

 

 

7,671,839

 

$

384,968

 

5.02

%

 

 

7,107,449

 

$

275,831

 

3.88

%

 

 

 

 

 

 

Other assets, net

 

 

735,723

 

 

 

 

 

 

730,246

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

8,407,562

 

 

 

 

 

$

7,837,695

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing core deposits

 

$

4,417,426

 

$

99,673

 

2.26

%

 

$

3,987,201

 

$

15,324

 

0.38

%

 

 

 

 

 

 

Brokered deposits

 

 

615,209

 

 

26,151

 

4.25

%

 

 

490,871

 

 

6,428

 

1.31

%

 

 

 

 

 

 

Total interest-bearing deposits

 

 

5,032,635

 

 

125,824

 

2.50

%

 

 

4,478,072

 

 

21,752

 

0.49

%

 

 

 

 

 

 

Wholesale funding

 

 

304,190

 

 

15,522

 

5.10

%

 

 

298,852

 

 

12,205

 

4.08

%

 

 

 

 

 

 

Total interest-bearing liabilities

 

 

5,336,825

 

$

141,346

 

2.65

%

 

 

4,776,924

 

$

33,957

 

0.71

%

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

 

2,054,792

 

 

 

 

 

 

2,135,852

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

36,579

 

 

 

 

 

 

38,534

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

979,366

 

 

 

 

 

 

886,385

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

8,407,562

 

 

 

 

 

$

7,837,695

 

 

 

 

 

 

 

 

 

 

Net interest income and rate spread

 

 

 

$

243,622

 

2.37

%

 

 

 

$

241,874

 

3.17

%

 

 

 

 

 

 

Net interest margin

 

 

 

 

 

3.18

%

 

 

 

 

 

3.40

%

 

 

 

 

 

 

Loan purchase accounting accretion (3)

 

 

 

$

6,496

 

0.10

%

 

 

 

$

4,572

 

0.06

%

 

 

 

 

 

 

(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

 

For the Years Ended

(In thousands, except per share data)

 

12/31/2023

 

9/30/2023

 

6/30/2023

 

3/31/2023

 

12/31/2022

 

12/31/2023

 

12/31/2022

Adjusted net income (loss) reconciliation: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) (GAAP)

 

$

30,661

 

 

$

17,158

 

 

$

22,595

 

$

(8,898

)

 

$

27,601

 

 

$

61,516

 

$

94,260

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision expense (2)

 

 

—

 

 

 

—

 

 

 

—

 

 

2,340

 

 

 

—

 

 

 

2,340

 

 

8,000

 

Assets (gains) losses, net

 

 

(5,947

)

 

 

(31

)

 

 

318

 

 

38,468

 

 

 

(260

)

 

 

32,808

 

 

(3,130

)

Merger-related expense

 

 

—

 

 

 

—

 

 

 

26

 

 

163

 

 

 

492

 

 

 

189

 

 

1,664

 

Contract termination charge

 

 

2,689

 

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

2,689

 

 

—

 

Adjustments subtotal

 

 

(3,258

)

 

 

(31

)

 

 

344

 

 

40,971

 

 

 

232

 

 

 

38,026

 

 

6,534

 

Tax on Adjustments (3)

 

 

(635

)

 

 

(6

)

 

 

86

 

 

10,243

 

 

 

58

 

 

 

7,415

 

 

1,634

 

Tax - Wisconsin Tax Law Change (4)

 

 

—

 

 

 

6,151

 

 

 

—

 

 

—

 

 

 

—

 

 

 

9,118

 

 

—

 

Adjusted net income (Non-GAAP)

 

$

28,038

 

 

$

23,284

 

 

$

22,853

 

$

21,830

 

 

$

27,775

 

 

$

101,245

 

$

99,161

 

Diluted earnings (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per common share (GAAP)

 

$

2.02

 

 

$

1.14

 

 

$

1.51

 

$

(0.61

)

 

$

1.83

 

 

$

4.08

 

$

6.56

 

Adjusted Diluted earnings per common share (Non-GAAP)

 

$

1.85

 

 

$

1.54

 

 

$

1.53

 

$

1.45

 

 

$

1.84

 

 

$

6.72

 

$

6.90

 

Tangible assets: (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

8,468,678

 

 

$

8,416,162

 

 

$

8,482,628

 

$

8,192,354

 

 

$

8,763,969

 

 

 

 

 

Goodwill and other intangibles, net

 

 

394,366

 

 

 

396,208

 

 

 

398,194

 

 

400,277

 

 

 

402,438

 

 

 

 

 

Tangible assets

 

$

8,074,312

 

 

$

8,019,954

 

 

$

8,084,434

 

$

7,792,077

 

 

$

8,361,531

 

 

 

 

 

Tangible common equity: (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity (common)

 

$

1,039,007

 

 

$

974,461

 

 

$

977,638

 

$

961,792

 

 

$

972,529

 

 

 

 

 

Goodwill and other intangibles, net

 

 

394,366

 

 

 

396,208

 

 

 

398,194

 

 

400,277

 

 

 

402,438

 

 

 

 

 

Tangible common equity

 

$

644,641

 

 

$

578,253

 

 

$

579,444

 

$

561,515

 

 

$

570,091

 

 

 

 

 

Tangible average common equity: (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average stockholders’ equity (common)

 

$

996,745

 

 

$

983,133

 

 

$

967,142

 

$

970,108

 

 

$

954,970

 

 

$

979,366

 

$

886,385

 

Average goodwill and other intangibles, net

 

 

395,158

 

 

 

397,052

 

 

 

399,080

 

 

401,212

 

 

 

403,243

 

 

 

398,106

 

 

361,471

 

Average tangible common equity

 

$

601,587

 

 

$

586,081

 

 

$

568,062

 

$

568,896

 

 

$

551,727

 

 

$

581,260

 

$

524,914

 

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, and the provision expense for 2022 is attributable to the Day 2 allowance from the acquisition of Charter Bankshares, Inc.

(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/20240116699500/en/

Investor Relations Eric Radzak ir@nicoletbank.com 920.617.4540

Media Inquiries Jeff Gahnz voice@nicoletbank.com 920.430.7344