Cision PR Newswire

NICOLET BANKSHARES, INC. ANNOUNCES SECOND QUARTER 2022 EARNINGS

  • Net income of $24 million, consistent with prior quarter and 31% higher than second quarter 2021
  • Net income of $48 million for first six months of 2022, compared to $37 million for first six months of 2021
  • Earnings per diluted common share of $1.73 and $3.43 for the three and six months ended June 30
  • Return on average assets of 1.32% and 1.31% for the three and six months ended June 30
  • Return on average common equity and return on average tangible common equity of 11.48% and 19.21%, respectively, for second quarter 2022
  • Regulatory approvals for Charter merger received

GREEN BAY, Wis., July 19, 2022 /PRNewswire/ -- Nicolet Bankshares, Inc. (NYSE: NIC) ("Nicolet" or the "Company") announced second quarter 2022 net income of $24 million and earnings per diluted common share of $1.73, compared to $24 million and $1.70 for first quarter 2022, and $18 million and $1.77 for second quarter 2021, respectively.  Annualized quarterly return on average assets was 1.32%, 1.30% and 1.62%, for second quarter 2022, first quarter 2022 and second quarter 2021, respectively.

Net income for the six months ended June 30, 2022 was $48 million and earnings per diluted common share was $3.43, compared to net income of $37 million and earnings per diluted common share of $3.52 for the first half of 2021.  Annualized return on average assets was 1.31% and 1.63% for the first six months of 2022 and 2021, respectively.

On March 29, 2022, the Company entered into a definitive merger agreement with Charter Bankshares, Inc. ("Charter") pursuant to which Charter will merge with and into Nicolet.  Nicolet expects to issue approximately 1.26 million shares of Nicolet common stock and $38.8 million in cash for the acquisition of Charter.  At March 31, 2022, Charter had total assets of $1.1 billion.  As of July 12, 2022, all regulatory approvals for the Charter merger had been received. The merger is expected to close in the third quarter of 2022, subject to customary closing conditions.

"Despite the potential distractions of rate hikes and inflationary pressures, our team has remained focused on serving our customers. This focus has resulted in strong fundamental performance, including good loan growth, across our core customer base," said Mike Daniels, President and CEO of Nicolet. "Our customers continue to show that they are smart and resilient as they have kept their balance sheets strong and remain on solid ground.  The partnership between our bankers and customers continues to create the shared success upon which Nicolet was founded."

"Our focus on asset quality and bringing back Ag loan participations have been executed well by our team.  Our credit quality remains very strong, and nonperforming assets and charge-offs have declined for the second consecutive quarter.  We also repurchased approximately $100 million in previously participated Ag loans this quarter which has helped us deliver on our strategies in the Ag sector.  The team has done a good job in a short time," Daniels added.

Executive Vice President Eric Witczak commented, "As with all our merger integrations, we remain as focused on the people side as we do the systems side.  We believe that we found some wonderful community-focused people, led by Paul Kohler, that will bring the Nicolet story to life in Western Wisconsin and Minnesota."  

The Company's financial performance and certain balance sheet line items were impacted by the timing and size of Nicolet's 2021 acquisitions, Mackinac Financial Corporation ("Mackinac") on September 3, 2021 and County Bancorp, Inc. ("County") on December 3, 2021. Certain income statement results, average balances and related ratios for 2021 include partial contributions from Mackinac and County, each from the respective acquisition date.  At acquisition, Mackinac added assets of $1.5 billion, loans of $0.9 billion, and deposits of $1.4 billion, while at acquisition County added assets of $1.4 billion, loans of $1.0 billion, and deposits of $1.0 billion.

Balance Sheet Review

At June 30, 2022, period end assets were $7.4 billion, an increase of $50 million (1%) from March 31, 2022, including strong loan growth, partly offset by lower cash and cash equivalents.  Total loans increased $295 million (6%) from March 31, 2022, with solid organic loan growth in agricultural, commercial and industrial, and residential first mortgage loans, as well as the repurchase of approximately $100 million previously participated agricultural loans.  Excluding the purchased agricultural loans, organic loan growth was 4% from March 31, 2022.  Total deposits of $6.3 billion at June 30, 2022, increased $55 million (1%) from March 31, 2022, primarily noninterest-bearing deposits. Total capital was $839 million at June 30, 2022, an increase of $3 million since March 31, 2022, with current quarter earnings partly offset by unfavorable changes in the fair value of available for sale securities and common stock repurchases. 

Asset Quality

Nonperforming assets were $42 million and represented 0.56% of total assets at June 30, 2022, compared to $49 million or 0.68% at March 31, 2022.  The allowance for credit losses-loans was $51 million and represented 1.02% of total loans at June 30, 2022, compared to $50 million and 1.07% at March 31, 2022, reflecting strong loan growth, solid asset quality trends, and negligible net charge-offs.

Income Statement Review - Quarter

Net income for second quarter 2022 was $24 million, consistent with net income of $24 million for first quarter 2022.

Net interest income was $55 million for second quarter 2022, up slightly ($1 million) from first quarter 2022, reflecting strong loan volumes and one additional day in the quarter, though still pressured on rates from competitive pricing and the lag in repricing to current market interest rates.  Average interest-earning assets of $6.6 billion were down $132 million from first quarter 2022.  Average loans of $4.8 billion grew $150 million over first quarter 2022, including both organic loan growth and the repurchase of previously participated agricultural loans, while other interest-earning assets were down $279 million, mostly cash, and average investments were minimally changed.  Average interest-bearing liabilities of $4.4 billion decreased $258 million from first quarter 2022, primarily average interest-bearing deposits due to a reduction in retail deposits. 

The net interest margin for second quarter 2022 was 3.34%, up 11bps from 3.23% for first quarter 2022. The yield on interest-earning assets increased 13bps (to 3.61%) largely due to the change in mix of interest-earning assets, which shifted to 73% loans, 24% investments, and 3% other interest-earning assets (mostly cash) for second quarter 2022 compared to 70% loans, 23% investments, and 7% other interest-earning assets for first quarter 2022.   The cost of funds increased 5bps (to 0.40%) for second quarter 2022, attributable mainly to the repricing of deposits and funding in the higher interest rate environment.

Noninterest income was $14 million for second quarter 2022, down $2 million (11%) compared to first quarter 2022.  Net mortgage income of $2 million was down $1 million from first quarter 2022, primarily due to lower gains on sales from declining secondary market volumes. Trust services fee income and brokerage fee income combined decreased $0.7 million (12%) from first quarter 2022, mostly from unfavorable market-related declines.  Card interchange income grew $0.4 million (14%) over first quarter 2022 on higher volume and activity. Other noninterest income was down $0.6 million between the sequential quarters mostly due to an $0.8 million unfavorable change in the fair value of nonqualified deferred compensation plan assets from recent market declines, partly offset by $0.2 million higher net loan servicing revenue.  Both quarters also included net asset gains primarily related to sales of other real estate owned (mostly closed bank branch locations). 

Noninterest expense of $37 million decreased $1 million (3%) from first quarter 2022. Personnel expense decreased $1.5 million (7%) from first quarter 2022, largely due to the offsetting change to the nonqualified deferred compensation plan liabilities and lower health claim experience, partly offset by higher salary expense from the increase in hourly pay or base salary effective at the end of March 2022, which benefitted 67% of our employee base.  Non-personnel expenses increased $0.5 million (3%), largely due to $0.5 million higher merger-related expense, $0.2 million higher marketing (timing of marketing campaigns and community support), and $0.2 million higher data processing (volume-based),  partly offset by a $0.3 million decline in other noninterest expense from lower costs to carry closed bank branches given the recent sales. 

About Nicolet Bankshares, Inc.

Nicolet Bankshares, Inc. is the bank holding company of Nicolet National Bank, a growing, full-service, community bank providing services ranging from commercial, agricultural and consumer banking to wealth management and retirement plan services. Founded in Green Bay in 2000, Nicolet National Bank operates branches in Northeast and Central Wisconsin, Northern Michigan and the upper peninsula of Michigan. More information can be found at www.nicoletbank.com.

Use of Non-GAAP Financial Measures

This communication contains non-GAAP financial measures, such as non-GAAP net income, non-GAAP earnings per  diluted common share, tangible book value per common share, return on average tangible common equity, and tangible common equity to tangible assets, where management believes such measures to be helpful to management, investors and others in understanding Nicolet's results of operations or financial position. 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 federal securities law. Such statements include, but are not limited to, statements about Nicolet's business plans, objectives, expectations and intentions, including without limitation Nicolet's prospects and pipelines looking strong and business focus moving forward, as well as certain plans, expectations, goals, the expected closing date of the Charter merger as well as the projections and benefits relating to the proposed merger between Nicolet and Charter, all of which are subject to numerous assumptions, risks and uncertainties. Words or phrases such as "anticipate," "believe," "aim," "can," "conclude," "continue," "could," "estimate," "expect," "foresee," "goal," "intend," "may," "might," "outlook," "possible," "plan," "predict," "project," "potential," "seek," "should," "target," "will," "will likely," "would," or the negative of these terms or other comparable terminology, as well as similar expressions, are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.

Forward-looking statements are not historical facts but instead express only management's beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management's control. It is possible that actual results and outcomes may differ, possibly materially, from the anticipated results or outcomes indicated in these forward-looking statements. In addition to factors disclosed in reports filed by Nicolet with the SEC, risks and uncertainties, including but not limited to risks and uncertainties for Nicolet with respect to its proposed merger with Charter, that may cause actual results or outcomes to differ materially from those anticipated include, but are not limited to: (1) the possibility that the proposed merger will not be completed due to the failure to satisfy one or more of the closing conditions of the merger; (2) the possibility that any of the anticipated benefits of the proposed merger will not be realized or will not be realized within the expected time period; (3) the risk that integration of Charter's operations with those of Nicolet will be materially delayed or will be more costly or difficult than expected; (4) the parties' inability to meet expectations regarding the timing of the proposed merger; (5) changes to tax legislation and their potential effects on the accounting for the proposed merger; (6) diversion of management's attention from ongoing business operations and opportunities due to the proposed merger; (7) the challenges of integrating and retaining key employees; (8) the effect of the announcement of the proposed merger on Nicolet's, Charter's or the combined company's respective customer and employee relationships and operating results; (9) the possibility that the proposed merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (10) dilution caused by Nicolet's issuance of additional shares of Nicolet common stock in connection with the proposed merger; (11) the magnitude and duration of the COVID pandemic and its impact on the global economy and financial market conditions and Nicolet's business, results of operations and financial condition; (12) changes in consumer demand for financial services; (13) general competitive, economic, political and market conditions and fluctuations; and additional risks that are discussed in Nicolet's SEC filings.  Please refer to Nicolet's 2021 Annual Report on Form 10-K, as well as its other filings with the SEC, for a more detailed discussion of risks, uncertainties and factors that could cause actual results to differ from those discussed in the forward-looking statements.

All forward-looking statements included in this communication are made as of the date hereof and are based on information available to management at that time. Except as required by law, Nicolet does not assume any obligation to update any forward-looking statement to reflect events or circumstances that occur after the date the forward-looking statements were made.

 

Nicolet Bankshares, Inc.











Consolidated Balance Sheets (Unaudited)











(In thousands, except share data)


06/30/2022


03/31/2022


12/31/2021


09/30/2021


06/30/2021

Assets











Cash and due from banks


$              96,189


$            183,705


$            209,349


$            217,608


$              77,634

Interest-earning deposits


84,828


212,218


385,943


1,132,997


714,772

Cash and cash equivalents


181,017


395,923


595,292


1,350,605


792,406

Certificates of deposit in other banks


15,502


19,692


21,920


24,079


23,387

Securities available for sale, at fair value


813,248


852,331


921,661


715,942


562,028

Securities held to maturity, at amortized cost


695,812


684,991


651,803


49,063


Other investments


53,269


54,257


44,008


38,602


33,440

Loans held for sale


5,084


9,764


6,447


16,784


11,235

Other assets held for sale




199,833


177,627


Loans


4,978,654


4,683,315


4,621,836


3,533,198


2,820,331

Allowance for credit losses - loans


(50,655)


(49,906)


(49,672)


(38,399)


(32,561)

Loans, net


4,927,999


4,633,409


4,572,164


3,494,799


2,787,770

Premises and equipment, net


96,656


94,275


94,566


83,513


61,618

Bank owned life insurance ("BOLI")


136,060


135,292


134,476


100,690


84,347

Goodwill and other intangibles, net


336,721


338,068


339,492


269,954


173,711

Accrued interest receivable and other assets


108,884


102,210


113,375


86,162


57,405

Total assets


$         7,370,252


$         7,320,212


$         7,695,037


$         6,407,820


$         4,587,347












Liabilities and Stockholders' Equity











Liabilities:











Noninterest-bearing demand deposits


$         2,045,732


$         1,912,995


$         1,975,705


$         1,852,119


$         1,324,994

Interest-bearing deposits


4,240,534


4,318,125


4,490,211


3,576,655


2,614,028

Total deposits


6,286,266


6,231,120


6,465,916


5,428,774


3,939,022

Short-term borrowings






Long-term borrowings


196,963


206,946


216,915


144,233


45,108

Other liabilities held for sale




51,586


47,496


Accrued interest payable and other liabilities


47,636


45,836


68,729


58,039


43,822

Total liabilities


6,530,865


6,483,902


6,803,146


5,678,542


4,027,952

Stockholders' Equity:











Common stock


134


135


140


120


98

Additional paid-in capital


520,741


524,478


575,045


425,367


261,096

Retained earnings


361,753


337,768


313,604


297,299


289,475

Accumulated other comprehensive income (loss)


(43,241)


(26,071)


3,102


6,492


8,726

Total Nicolet stockholders' equity


839,387


836,310


891,891


729,278


559,395

Total liabilities and  stockholders' equity


$         7,370,252


$         7,320,212


$         7,695,037


$         6,407,820


$         4,587,347












Common shares outstanding


13,407,375


13,456,741


13,994,079


11,952,438


9,843,141

 

Nicolet Bankshares, Inc.















Consolidated Statements of Income (Unaudited)













For the Three Months Ended


For the Six Months Ended

(In thousands, except per share data)


06/30/2022


03/31/2022


12/31/2021


09/30/2021


06/30/2021


6/30/2022


6/30/2021

Interest income:















Loans, including loan fees


$          52,954


$          51,299


$          52,292


$          35,294


$          35,111


$         104,253


$           68,973

Taxable investment securities


5,135


5,127


3,999


2,061


2,060


10,262


3,874

Tax-exempt investment securities


647


675


575


517


520


1,322


1,065

Other interest income


790


817


769


869


616


1,607


1,271

Total interest income


59,526


57,918


57,635


38,741


38,307


117,444


75,183

Interest expense:















Deposits


2,410


2,192


2,649


2,444


2,433


4,602


5,355

Short-term borrowings


28



1




28


Long-term borrowings


2,004


1,931


1,426


1,113


303


3,935


616

Total interest expense


4,442


4,123


4,076


3,557


2,736


8,565


5,971

Net interest income


55,084


53,795


53,559


35,184


35,571


108,879


69,212

Provision for credit losses


750


300


8,400


6,000



1,050


500

Net interest income after provision for credit losses


54,334


53,495


45,159


29,184


35,571


107,829


68,712

Noninterest income:















Trust services fee income


2,004


2,011


2,050


2,043


1,906


4,015


3,681

Brokerage fee income


2,988


3,688


3,205


3,154


2,991


6,676


5,784

Mortgage income, net


2,205


3,253


4,518


4,808


5,599


5,458


12,829

Service charges on deposit accounts


1,536


1,477


1,482


1,314


1,136


3,013


2,227

Card interchange income


2,950


2,581


2,671


2,299


2,266


5,531


4,193

BOLI income


768


933


722


572


559


1,701


1,086

Asset gains (losses), net


1,603


1,313


465


(1,187)


4,192


2,916


4,903

Other noninterest income


77


687


951


993


1,529


764


2,601

Total noninterest income


14,131


15,943


16,064


13,996


20,178


30,074


37,304

Noninterest expense:















Personnel expense


19,681


21,191


21,491


16,927


17,084


40,872


32,200

Occupancy, equipment and office


6,891


6,944


7,119


5,749


4,053


13,835


8,190

Business development and marketing


2,057


1,831


1,550


1,654


1,210


3,888


2,199

Data processing


3,596


3,387


3,582


2,939


2,811


6,983


5,469

Intangibles amortization


1,347


1,424


1,094


758


790


2,771


1,642

FDIC assessments


480


480


480


480


480


960


1,075

Merger-related expense


555


98


2,202


2,793


656


653


656

Other noninterest expense


1,931


2,195


1,890


1,761


3,663


4,126


5,397

Total noninterest expense


36,538


37,550


39,408


33,061


30,747


74,088


56,828

Income before income tax expense


31,927


31,888


21,815


10,119


25,002


63,815


49,188

Income tax expense


7,942


7,724


5,510


2,295


6,718


15,666


12,665

Net income


$          23,985


$          24,164


$          16,305


$            7,824


$          18,284


$           48,149


$           36,523

Earnings per common share:















Basic


$             1.79


$             1.77


$             1.29


$             0.75


$             1.85


$               3.56


$               3.67

Diluted


$             1.73


$             1.70


$             1.25


$             0.73


$             1.77


$               3.43


$               3.52

Common shares outstanding:















Basic weighted average


13,402


13,649


12,626


10,392


9,902


13,525


9,949

Diluted weighted average


13,852


14,215


13,049


10,776


10,326


14,035


10,365

 

Nicolet Bankshares, Inc.















Consolidated Financial Summary (Unaudited)













For the Three Months Ended


For the Six Months Ended

(In thousands, except share & per share data)


06/30/2022


3/31/2022


12/31/2021


9/30/2021


6/30/2021


6/30/2022


6/30/2021

Selected Average Balances:















Loans


$  4,838,535


$  4,688,784


$  3,952,330


$  3,076,422


$  2,869,105


$    4,764,073


$    2,847,504

Investment securities


1,573,027


1,575,624


1,269,562


611,870


537,632


1,574,319


533,013

Interest-earning assets


6,579,644


6,711,191


5,923,581


4,734,768


4,109,394


6,645,054


4,099,553

Cash and cash equivalents


217,553


568,472


839,607


1,100,153


716,873


392,043


733,383

Goodwill and other intangibles, net


337,289


338,694


294,051


201,748


174,026


337,988


174,424

Total assets


7,273,219


7,519,636


6,772,363


5,246,193


4,527,839


7,395,747


4,521,419

Deposits


6,188,044


6,392,544


5,754,778


4,448,468


3,897,797


6,289,729


3,886,563

Interest-bearing liabilities


4,425,450


4,683,915


4,006,307


3,093,031


2,684,871


4,553,968


2,724,332

Stockholders' equity (common)


837,975


861,319


784,666


608,946


550,974


849,582


547,775

Selected Ratios: (1)















Book value per common share


$         62.61


$         62.15


$         63.73


$         61.01


$         56.83


$          62.61


$          56.83

Tangible book value per common share (2)


$         37.49


$         37.03


$         39.47


$         38.43


$         39.18


$          37.49


$          39.18

Return on average assets


1.32 %


1.30 %


0.96 %


0.59 %


1.62 %


1.31 %


1.63 %

Return on average common equity


11.48


11.38


8.24


5.10


13.31


11.43


13.45

Return on average tangible common equity (2)


19.21


18.75


13.19


7.62


19.46


18.98


19.73

Average equity to average assets


11.52


11.45


11.59


11.61


12.17


11.49


12.12

Stockholders' equity to assets


11.39


11.42


11.59


11.38


12.19


11.39


12.19

Tangible common equity to tangible assets (2)


7.15


7.14


7.51


7.48


8.74


7.15


8.74

Net interest margin


3.34


3.23


3.57


2.94


3.45


3.29


3.38

Efficiency ratio


53.74


54.56


56.73


65.32


59.37


54.16


55.66

Effective tax rate


24.88


24.22


25.26


22.68


26.87


24.55


25.75

Selected Asset Quality Information:















Nonaccrual loans


$       36,580


$       39,670


$       44,154


$       16,715


$         6,932


$        36,580


$          6,932

Other real estate owned - closed branches


4,378


9,019


10,307


2,895


2,895


4,378


2,895

Other real estate owned


628


797


1,648


1,574



628


Nonperforming assets


$       41,586


$       49,486


$       56,109


$       21,184


$         9,827


$        41,586


$          9,827

Net loan charge-offs (recoveries)


$          (149)


$             66


$            (10)


$             58


$             65


$             (83)


$             112

Allowance for credit losses-loans to loans


1.02 %


1.07 %


1.07 %


1.09 %


1.15 %


1.02 %


1.15 %

Net loan charge-offs to average loans (1)


(0.01)


0.01


0.00


0.01


0.01


0.00


0.01

Nonperforming loans to total loans


0.73


0.85


0.96


0.47


0.25


0.73


0.25

Nonperforming assets to total assets


0.56


0.68


0.73


0.33


0.21


0.56


0.21

Stock Repurchase Information:















Common stock repurchased (dollars) (3)


$         6,277


$       54,420


$       27,784


$       17,125


$       12,453


$        60,697


$        16,555

Common stock repurchased (full shares) (3)


67,949


593,713


345,166


233,594


157,418


661,662


214,304

(1)

Income statement-related ratios for partial-year periods are annualized.

(2)

See Reconciliation of Non-GAAP Financial Measures below for a reconciliation of these financial measures.

(3)

Reflects common stock repurchased under board of director authorizations for the common stock repurchase program.

 

Nicolet Bankshares, Inc.












Net Interest Income and Net Interest Margin Analysis (Unaudited)


































For the Three Months Ended




June 30, 2022


March 31, 2022


June 30, 2021




Average




Average


Average




Average


Average




Average


(In thousands)


Balance


Interest


Rate


Balance


Interest


Rate


Balance


Interest


Rate


ASSETS




















PPP loans


$       5,333


$         13


0.93 %


$      13,503


$     1,377


40.79 %


$    205,639


$     4,862


9.35 %


All other loans


4,833,202


52,971


4.34 %


4,675,281


49,957


4.27 %


2,663,466


30,267


4.50 %


Total loans (1) (2)


4,838,535


52,984


4.34 %


4,688,784


51,334


4.38 %


2,869,105


35,129


4.85 %


Investment securities (2)


1,573,027


6,126


1.56 %


1,575,624


6,158


1.57 %


537,632


2,794


2.08 %


Other interest-earning assets


168,082


790


1.87 %


446,783


817


0.73 %


702,657


616


0.35 %


Total interest-earning assets


6,579,644


$   59,900


3.61 %


6,711,191


$   58,309


3.48 %


4,109,394


$   38,539


3.72 %


Other assets, net


693,575






808,445






418,445






Total assets


$ 7,273,219






$ 7,519,636






$ 4,527,839






LIABILITIES AND STOCKHOLDERS' EQUITY














Interest-bearing core deposits


$ 3,787,103


$     1,857


0.20 %


$ 4,009,898


$     1,637


0.17 %


$ 2,387,730


$     1,523


0.26 %


Brokered deposits


423,372


553


0.52 %


459,460


555


0.49 %


253,816


910


1.44 %


Total interest-bearing deposits


4,210,475


2,410


0.23 %


4,469,358


2,192


0.20 %


2,641,546


2,433


0.37 %


Wholesale funding


214,975


2,032


3.77 %


214,557


1,931


3.60 %


43,325


303


2.76 %


Total interest-bearing liabilities


4,425,450


$     4,442


0.40 %


4,683,915


$     4,123


0.35 %


2,684,871


$     2,736


0.41 %


Noninterest-bearing demand deposits


1,977,569






1,923,186






1,256,251






Other liabilities


32,225






51,216






35,743






Stockholders' equity


837,975






861,319






550,974






Total liabilities and stockholders' equity


$ 7,273,219






$ 7,519,636






$ 4,527,839






Net interest income and rate spread




$   55,458


3.21 %




$   54,186


3.13 %




$   35,803


3.31 %


Net interest margin






3.34 %






3.23 %






3.45 %
























For the Six Months Ended










June 30, 2022


June 30, 2021










Average




Average


Average




Average








(In thousands)


Balance


Interest


Rate


Balance


Interest


Rate








ASSETS




















PPP loans


$       9,395


$     1,390


29.41 %


$    206,066


$     8,813


8.51 %








All other loans


4,754,678


102,928


4.31 %


2,641,438


60,200


4.54 %








Total loans (1) (2)


4,764,073


104,318


4.36 %


2,847,504


69,013


4.83 %








Investment securities (2)


1,574,319


12,284


1.56 %


533,013


5,383


2.02 %








Other interest-earning assets


306,662


1,607


1.05 %


719,036


1,271


0.35 %








Total interest-earning assets


6,645,054


$ 118,209


3.54 %


4,099,553


$   75,667


3.68 %








Other assets, net


750,693






421,866












Total assets


$ 7,395,747






$ 4,521,419












LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                    














Interest-bearing core deposits


$ 3,897,885


$     3,494


0.18 %


$ 2,391,816


$     3,364


0.28 %








Brokered deposits


441,316


1,108


0.51 %


285,029


1,991


1.41 %








Total interest-bearing deposits


4,339,201


4,602


0.21 %


2,676,845


5,355


0.40 %








Wholessale funding


214,767


3,963


3.69 %


47,487


616


2.58 %








Total interest-bearing liabilities


4,553,968


$     8,565


0.38 %


2,724,332


$     5,971


0.44 %








Noninterest-bearing demand deposits


1,950,528






1,209,718












Other liabilities


41,669






39,594












Stockholders' equity


849,582






547,775












Total liabilities and stockholders' equity


$ 7,395,747






$ 4,521,419












Net interest income and rate spread




$ 109,644


3.16 %




$   69,696


3.24 %








Net interest margin






3.29 %






3.38 %








(1)

Nonaccrual loans and loans held for sale are included in the daily average loan balances outstanding.

(2)

The yield on tax-exempt loans and tax-exempt investment securities is computed on a tax-equivalent basis using a federal tax rate of 21%, and adjusted for the disallowance of interest expense.

 

Nicolet Bankshares, Inc.















Reconciliation of Non-GAAP Financial Measures (Unaudited)













At or for the Three Months Ended


At or for the Six Months Ended

(In thousands, except per share data)


06/30/2022


3/31/2022


12/31/2021


9/30/2021


6/30/2021


6/30/2022


6/30/2021

Adjusted net income reconciliation: (1)















Net income (GAAP)


$          23,985


$          24,164


$          16,305


$            7,824


$          18,284


$           48,149


$           36,523

Adjustments:















Provision expense related to merger




8,400


6,000




Assets (gains) losses, net


(1,603)


(1,313)


(465)


1,187


(4,192)


(2,916)


(4,903)

Merger-related expense


555


98


2,202


2,793


656


653


656

Branch closure expense





944




Adjustments subtotal


(1,048)


(1,215)


10,137


10,924


(3,536)


(2,263)


(4,247)

Tax on Adjustments (25%)


(262)


(304)


2,534


2,731


(884)


(566)


(1,062)

Adjustments, net of tax


(786)


(911)


7,603


8,193


(2,652)


(1,697)


(3,185)

Adjusted net income (Non-GAAP)


$          23,199


$          23,253


$          23,908


$          16,017


$          15,632


$           46,452


$           33,338

Common shares outstanding:















Weighted average diluted common shares


13,852


14,215


13,049


10,776


10,326


14,035


10,365

Diluted earnings per common share:















Diluted earnings per common share (GAAP)


$             1.73


$             1.70


$             1.25


$             0.73


$             1.77


$               3.43


$               3.52

Adjusted Diluted earnings per common share (Non-GAAP)


$             1.67


$             1.64


$             1.83


$             1.49


$             1.51


$               3.31


$               3.22

Tangible assets: (2)















Total assets


$     7,370,252


$     7,320,212


$     7,695,037


$     6,407,820


$     4,587,347





Goodwill and other intangibles, net


336,721


338,068


339,492


269,954


173,711





Tangible assets


$     7,033,531


$     6,982,144


$     7,355,545


$     6,137,866


$     4,413,636





Tangible common equity: (2)















Stockholders' equity


$        839,387


$        836,310


$        891,891


$        729,278


$        559,395





Goodwill and other intangibles, net


336,721


338,068


339,492


269,954


173,711





Tangible common equity


$        502,666


$        498,242


$        552,399


$        459,324


$        385,684





Tangible average common equity: (2)















Average stockholders' equity (common)


$        837,975


$        861,319


$        784,666


$        608,946


$        550,974


$         849,582


$         547,775

Average goodwill and other intangibles, net


337,289


338,694


294,051


201,748


174,026


337,988


174,424

Average tangible common equity


$        500,686


$        522,625


$        490,615


$        407,198


$        376,948


$         511,594


$         373,351

(1)

The adjusted net income measure and related reconciliation provide information useful to investors in understanding the operating performance and trends of Nicolet and also to aid investors in the comparison of Nicolet's financial performance to the financial performance of peer banks.

(2)

The ratios of tangible book value per common share, return on average tangible common equity, and tangible common equity to tangible assets exclude goodwill and other intangibles, net.  These financial ratios have been included as they are considered to be critical metrics with which to analyze and evaluate financial condition and capital strength.

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SOURCE Nicolet Bankshares, Inc.