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20.07.2021 22:08:00

Nicolet Bankshares, Inc. Announces Second Quarter 2021 Earnings

GREEN BAY, Wis., July 20, 2021 /PRNewswire/ -- Nicolet Bankshares, Inc. (NASDAQ: NCBS) ("Nicolet") announced second quarter 2021 net income of $18.3 million and earnings per diluted common share of $1.77, compared to $18.2 million and $1.75 for first quarter 2021, and $13.5 million and $1.28 for second quarter 2020, respectively.  Annualized quarterly return on average assets was 1.62%, 1.64% and 1.26%, for second quarter 2021, first quarter 2021 and second quarter 2020, respectively.

Nicolet Bankshares, Inc. Logo (PRNewsFoto/Nicolet Bankshares, Inc.)

Net income for the six months ended June 30, 2021 was $36.5 million and earnings per diluted common share was $3.52, compared to net income of $24.0 million and earnings per diluted common share of $2.25 for the first half of 2020.  Annualized return on average assets was 1.63% and 1.23% for the first six months of 2021 and 2020, respectively.

"In the second quarter results, we see a focused effort by our team to work together, across all revenue lines, to serve our customers, communities, and each other.  While most of the spotlight has been on our acquisition announcements, we understand and are executing on the most important part of our job - to run a high-performing, operationally excellent community bank," said Mike Daniels, President and CEO of Nicolet.

"The one constant at Nicolet has always been change.  We had a busy quarter, with the title changes for Bob and me, two deal announcements, and our Subordinated Notes offering.  In addition, while we were welcoming Phil to his new role as CFO, we needed to replace our accounting firm from Wipfli (where Phil was a partner) to BKD. I knew our team would respond well to these changes, and the numbers prove that," Daniels said.  "All revenue lines continue to grow organically, and our value is resonating in the communities in which we operate."

"This second quarter was a strong quarter for us," commented Bob Atwell, Executive Chairman of Nicolet.  "Seeing our customers thrive, watching our employees serving our customers so well, and being able to communicate these results to our shareholders, this is why we show up for work every day and fulfill our purpose."

The timing of Nicolet's acquisition of Advantage Community Bancshares, Inc. ("Advantage") on August 21, 2020, at 4% of then pre-merger assets, impacts financial comparisons.  At consummation, Advantage added $172 million in assets, $88 million in loans, $1 million in core deposit intangible, $12 million in goodwill, $141 million in deposits and four branches.

Balance Sheet Review
At June 30, 2021, period end assets were $4.6 billion, an increase of $44 million (1%) from March 31, 2021, mostly in cash and cash equivalents (up $57 million to $792 million).  Total loans decreased $26 million from March 31, 2021, including a $79 million decline in PPP loans, partly offset by growth of $53 million in the rest of the loan portfolio.  Total deposits of $3.9 billion at June 30, 2021, increased $38 million (1%) from March 31, 2021, with a decrease of $11 million in brokered deposits (as brokered deposits mature without renewal given our liquid position) more than offset by a $49 million increase in customer core deposits.  Total capital was $559 million at June 30, 2021, an increase of $9 million since March 31, 2021, mostly due to solid earnings, partly offset by share repurchase activity. Nicolet repurchased 157,418 shares at a total cost of $12.5 million, or an average per share cost of $79.11, during second quarter 2021.

During 2020, we originated 2,725 PPP loans totaling $351 million, bearing a 1% contractual rate, and earned a $12.3 million fee. During first half 2021, under the latest round of the SBA's program, Nicolet originated 2,205 PPP loans totaling $160 million and earned a $9.3 million fee. Of the total fees, $5.7 million was accreted into interest in 2020 and $7.7 million was accreted in first half 2021.  At June 30, 2021, the net carrying value of all remaining PPP loans was $150 million, or 5% of total loans, for a net $79 million decrease from March 31, 2021 due to loan forgiveness.  The PPP loan forgiveness continues to boost overall borrower equity in their businesses and meaningfully improves the credit quality of many commercial relationships.    

Asset Quality
Nonperforming assets were $10 million at June 30, consisting of $7 million of nonaccrual loans and $3 million of other real estate owned (primarily closed bank branch properties yet to be sold), and representing 0.21% of total assets, down from $13 million or 0.28% at March 31, 2021, and down from $13 million or 0.29% at June 30, 2020.  Since the prior quarter, the allowance for credit losses-loans remained level at $33 million, with negligible net charge-offs (0.01% of average loans, annualized) and continued improvement in asset quality metrics.  At June 30, 2021, the allowance represented 1.15% of total loans, and represented 1.22% of total loans excluding the net carrying value of PPP loans.

Income Statement Review
Net income for second quarter 2021 was $18.3 million, consistent with net income of $18.2 million for first quarter 2021 and 36% stronger than net income of $13.5 million for second quarter 2020.

Net interest income was $35.6 million for second quarter 2021, $1.9 million (6%) higher than $33.6 million for first quarter 2021, comprised of $1.4 million higher interest income and $0.5 million lower interest expense.  Between the sequential quarters, the $1.9 million higher net interest income included favorable volume variances (up $0.9 million), positive rate changes (up $0.7 million), and one additional earning day (up $0.3 million).   

Average interest-earning assets of $4.1 billion were up $20 million from first quarter 2021, with higher average loans (up $43 million, mostly from strong loan growth outpacing forgiveness on PPP loans) and growth in investments (up $9 million), offset by reductions in other interest-earning assets (down $33 million, mostly cash). Average interest-bearing liabilities of $2.7 billion decreased $79 million from first quarter 2021, mostly in brokered deposits (down $63 million). 

The net interest margin for second quarter 2021 was 3.45%, up 14bps from 3.31% for first quarter 2021, as the yield on interest-earning assets increased 9bps (to 3.72%) and the cost of funds favorably declined 6bps (to 0.41%), while the contribution from net free funds fell 1bp.  Loans yielded 4.85% for second quarter 2021, up 5bps from first quarter 2021, with total PPP loans yielding 9.35% (up 170bps over first quarter, aided mostly by accelerating fee accretion in line with loan forgiveness), while all other loans earned 4.50% (down 7bps from the prior quarter, pressured by new or renewed loans in the low rate environment).  The cost of funds of 0.41% for second quarter 2021 declined 6bps on a sequential quarter basis, attributable mainly to the timing of prudent pricing actions on core interest-bearing deposits (down 5bps to 0.26% for second quarter 2021).

Noninterest income was $20.2 million for second quarter 2021, up $3.1 million (18%) compared to first quarter 2021. Excluding net asset gains (losses), noninterest income was $16.0 million, down $0.4 million (3%) from first quarter 2021.  Net mortgage income of $5.6 million remains strong, though continues to slow from the record levels experienced in 2020. Trust services fee income and brokerage fee income combined increased $0.3 million (7%) over first quarter 2021.  Net asset gains were $4.2 million (comprised primarily of market gains on an equity investment initial public offering during the quarter), compared to net asset gains of $0.7 million in first quarter 2021 (comprised primarily of market gains on equity securities). All remaining noninterest income categories combined increased $0.9 million from first quarter 2021 largely due to higher card interchange income and the favorable resolution of an early lease termination. 

Noninterest expense of $30.7 million increased $4.7 million (18%) from first quarter 2021. Personnel expense increased $2.0 million (13%) from first quarter 2021, largely from higher equity and other incentives commensurate with the strong earnings.  All non-personnel expenses combined increased $2.7 million (25%) over first quarter 2021, largely due to a $2 million contract termination charge, as well as $0.5 million for the annual Board equity retainer and higher professional costs related to the recently announced acquisitions and new subordinated notes issuance. 

On April 12, 2021, we entered into a definitive merger agreement with Mackinac Financial Corporation ("Mackinac" (NASDAQ: MFNC)) pursuant to which Mackinac will merge with and into Nicolet, expanding Nicolet prominently into Northern Michigan and the Upper Peninsula of Michigan.  Mackinac shareholders will receive fixed consideration of 0.22 shares of Nicolet common stock and $4.64 in cash for each share owned (approximating a 20% cash and 80% stock split), subject to provisions provided for in the merger agreement.  At March 31, 2021, Mackinac had total assets of $1.5 billion, loans of $1.1 billion, deposits of $1.3 billion and equity of $170 million.  On July 15, 2021, the shareholders of both Mackinac and Nicolet approved the merger at special meetings of their respective shareholders held on that date.  As of July 19, 2021, Nicolet received all regulatory approvals for the Mackinc merger.  The merger is expected to close in the third quarter of 2021, subject to other customary closing conditions. 

On June 22, 2021, we entered into a definitive merger agreement with County Bancorp, Inc. ("County" (NASDAQ: ICBK)) pursuant to which County will merge with and into Nicolet, to become the premiere agriculture lender throughout Wisconsin.  Pursuant to the terms and subject to the conditions set forth in the Merger Agreement, County shareholders will have the right to receive for each share of County common stock, at the election of each holder and subject to proration, either $37.18 in cash or 0.48 shares of Nicolet common stock.  County shareholder elections will be prorated to ensure the total consideration will consist of approximately 20% cash and approximately 80% common stock.  At March 31, 2021, County had total assets of $1.5 billion, loans of $1.0 billion, deposits of $1.1 billion and equity of $166 million.  The merger is expected to close in the fourth quarter of 2021, subject to customary closing conditions, including approval by regulators and shareholders of both County and Nicolet.

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 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 and the upper peninsula of Michigan.  More information can be found at www.nicoletbank.com.

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 the continuing organic growth of Nicolet's revenue lines, as well as certain plans, expectations, goals, projections and benefits relating to the proposed merger between Nicolet and Mackinac, as well as the proposed merger between Nicolet and County, 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, Mackinac, County, and the combined companies with respect to the proposed mergers, that may cause actual results or outcomes to differ materially from those anticipated include, but are not limited to: (1) the possibility that any of the anticipated benefits of either or both of the proposed mergers will not be realized or will not be realized within the expected time period; (2) the risk that integration of Mackinac's operations and / or County's operations with those of Nicolet will be materially delayed or will be more costly or difficult than expected; (3) the parties' inability to meet expectations regarding the timing of the proposed mergers; (4) changes to tax legislation and their potential effects on the accounting for the mergers; (5) the inability to complete the proposed merger with County due to the failure of Nicolet's or County's shareholders to approve and adopt the merger agreement between Nicolet and County; (6) the failure to satisfy other conditions to completion of the proposed mergers, including receipt of required regulatory and other approvals; (7) the failure of the proposed mergers to close for any other reason; (8) diversion of management's attention from ongoing business operations and opportunities due to the proposed mergers; (9) the challenges of integrating and retaining key employees of Mackinac, County, and / or Nicolet after the mergers; (10) the effect of the announcements of the proposed mergers on Nicolet's, Mackinac's, County's, and / or the combined companies' respective customer and employee relationships and operating results; (11) the possibility that the proposed mergers may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (12) dilution caused by Nicolet's issuance of additional shares of Nicolet common stock in connection with the proposed mergers; (13) the magnitude and duration of the COVID pandemic and its impact on the global economy and financial market conditions and the business, results of operations and financial condition of Nicolet, Mackinac, County, and the combined companies; (14) changes in consumer demand for financial services; and (15) general competitive, economic, political and market conditions and fluctuations.  Please refer to each of Nicolet's, Mackinac's, and County's Annual Report on Form 10-K for the year ended December 31, 2020, as well as their 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.

The COVID pandemic is adversely affecting us, our customers, counterparties, employees, and third-party service providers, and the ultimate extent of the impacts on our business, financial position, results of operations, liquidity, and prospects is uncertain. Continued deterioration in general business and economic conditions or turbulence in domestic financial markets could adversely affect Nicolet's revenues and the values of its assets and liabilities, lead to a tightening of credit, and increase stock price volatility. In addition, the COVID pandemic may result in changes to statutes, regulations, or regulatory policies or practices that could affect Nicolet in substantial and unpredictable ways.

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.

Important Information and Where to Find It
This communication relates to the proposed merger transaction involving Nicolet and County. In connection with the proposed merger, Nicolet and County will file a joint proxy statement-prospectus on Form S-4 and other relevant documents concerning the merger with the Securities and Exchange Commission (the "SEC"). BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS ARE URGED TO READ THE JOINT PROXY STATEMENT-PROSPECTUS AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED MERGER OR INCORPORATED BY REFERENCE IN THE JOINT PROXY STATEMENT-PROSPECTUS BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT NICOLET, COUNTY, AND THE PROPOSED MERGER. When available, the joint proxy statement-prospectus will be delivered to shareholders of Nicolet and County. Investors may obtain copies of the joint proxy statement-prospectus and other relevant documents (as they become available) free of charge at the SEC's website (www.sec.gov). Copies of the documents filed with the SEC by Nicolet will be available free of charge on Nicolet's website at www.nicoletbank.com. Copies of the documents filed with the SEC by County will be available free of charge on County's website at Investors.ICBK.com/documents.

Nicolet, County and certain of their directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from the shareholders of Nicolet and the shareholders of County in connection with the proposed merger.  Information about the directors and executive officers of Nicolet and County will be included in the joint proxy statement-prospectus for the proposed transaction filed with the SEC.  Information about the directors and executive officers of Nicolet is also included in the proxy statement for its 2021 annual meeting of shareholders, which was filed with the SEC on March 2, 2021.  Information about the directors and executive officers of County is also included in the proxy statement for its 2021 annual meeting of shareholders, which was filed with the SEC on April 5, 2021.  Additional information regarding the interests of such participants and other persons who may be deemed participants in the transaction will be included in the joint proxy statement-prospectus and the other relevant documents filed with the SEC when they become available.

No Offer or Solicitation
This communication shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Nicolet Bankshares, Inc.

Consolidated Financial Summary (Unaudited)



At or for the Three Months Ended


At or for the Six Months Ended

(In thousands, except per share data)


06/30/2021


03/31/2021


12/31/2020


09/30/2020


06/30/2020


6/30/2021


6/30/2020

Results of operations:















Interest income


$

38,307



$

36,876



$

38,037



$

37,270



$

36,892



$

75,183



$

73,895


Interest expense


2,736



3,235



4,019



4,710



5,395



5,971



11,135


Net interest income


35,571



33,641



34,018



32,560



31,497



69,212



62,760


Provision for credit losses




500



1,300



3,000



3,000



500



6,000


Net interest income after provision for credit losses


35,571



33,141



32,718



29,560



28,497



68,712



56,760


Noninterest income


20,178



17,126



16,879



18,691



17,471



37,304



27,056


Noninterest expense


30,747



26,081



25,367



23,685



27,813



56,828



51,667


Income before income tax expense


25,002



24,186



24,230



24,566



18,155



49,188



32,149


Income tax expense


6,718



5,947



6,145



6,434



4,576



12,665



7,897


Net income


18,284



18,239



18,085



18,132



13,579



36,523



24,252


Net income attributable to noncontrolling interest






98



30



101





219


Net income attributable to Nicolet Bankshares, Inc.


$

18,284



$

18,239



$

17,987



$

18,102



$

13,478



$

36,523



$

24,033


Earnings per common share:















Basic


$

1.85



$

1.82



$

1.79



$

1.75



$

1.29



$

3.67



$

2.30


Diluted


$

1.77



$

1.75



$

1.74



$

1.72



$

1.28



$

3.52



$

2.25


Common Shares:















Basic weighted average


9,902


9,998


10,074


10,349


10,417


9,949


10,467

Diluted weighted average


10,326


10,403


10,350


10,499


10,520


10,365


10,659

Outstanding


9,843


9,988


10,011


10,196


10,424


9,843


10,424

Noninterest Income:















Trust services fee income


$

1,906



$

1,775



$

1,746



$

1,628



$

1,510



$

3,681



$

3,089


Brokerage fee income


2,991



2,793



2,673



2,489



2,269



5,784



4,591


Mortgage income, net


5,599



7,230



7,842



9,675



9,963



12,829



12,290


Service charges on deposit accounts


1,136



1,091



1,133



1,037



813



2,227



2,038


Card interchange income


2,266



1,927



1,922



1,877



1,637



4,193



3,199


BOLI income


559



527



936



531



540



1,086



1,243


Other noninterest income


1,529



1,072



1,247



1,237



1,487



2,601



2,008


Noninterest income without net gains


15,986



16,415



17,499



18,474



18,219



32,401



28,458


Asset gains (losses), net


4,192



711



(620)



217



(748)



4,903



(1,402)


Total noninterest income


$

20,178



$

17,126



$

16,879



$

18,691



$

17,471



$

37,304



$

27,056


Noninterest Expense:















Personnel expense


$

17,084



$

15,116



$

15,244



$

14,072



$

14,482



$

32,200



$

27,805


Occupancy, equipment and office


4,053



4,137



4,102



4,051



4,361



8,190



8,565


Business development and marketing


1,210



989



713



810



2,514



2,199



3,873


Data processing


2,811



2,658



3,074



2,658



2,399



5,469



4,962


Intangibles amortization


790



852



860



834



880



1,642



1,873


Other noninterest expense


4,799



2,329



1,374



1,260



3,177



7,128



4,589


Total noninterest expense


$

30,747



$

26,081



$

25,367



$

23,685



$

27,813



$

56,828



$

51,667


Period-End Balances:















Total loans


$

2,820,331



$

2,846,351



$

2,789,101



$

2,908,793



$

2,821,501



$

2,820,331



$

2,821,501


PPP loans


150,287



229,403



186,016



335,236



329,157



150,287



329,157


Total loans, ex. PPP loans


2,670,044



2,616,948



2,603,085



2,573,557



2,492,344



2,670,044



2,492,344


Allowance for credit losses - loans


32,561



32,626



32,173



31,388



29,130



32,561



29,130


Securities available for sale, at fair value


562,028



558,229



539,337



535,351



510,809



562,028



510,809


Cash and cash equivalents


792,406



735,854



802,859



853,564



822,684



792,406



822,684


Goodwill and other intangibles, net


173,711



174,501



175,353



176,213



164,094



173,711



164,094


Total assets


4,587,347



4,543,804



4,551,789



4,706,375



4,541,228



4,587,347



4,541,228


Deposits


3,939,022



3,900,594



3,910,399



3,712,808



3,537,805



3,939,022



3,537,805


Stockholders' equity (common)


559,395



550,046



539,189



538,068



532,033



559,395



532,033


Book value per common share


56.83



55.07



53.86



52.77



51.04



56.83



51.04


Tangible book value per common share (1)


39.18



37.60



36.34



35.49



35.30



39.18



35.30


 

Nicolet Bankshares, Inc.

Consolidated Financial Summary (Unaudited) - Continued













At or for the Three Months Ended


At or for the Six Months Ended

(In thousands, except per share data)


06/30/2021


3/31/2021


12/31/2020


9/30/2020


6/30/2020


6/30/2021


6/30/2020

Average Balances:















Loans


$

2,869,105



$

2,825,664



$

2,868,827



$

2,871,256



$

2,823,866



$

2,847,504



$

2,704,225


Investment securities


537,632



528,342



520,867



496,153



489,597



533,013



471,708


Interest-earning assets


4,109,394



4,089,603



4,091,460



4,216,106



3,917,499



4,099,553



3,542,502


Cash and cash equivalents


716,873



750,075



714,031



864,295



614,034



733,383



376,901


Goodwill and other intangibles, net


174,026



174,825



175,678



169,353



164,564



174,424



165,048


Total assets


4,527,839



4,514,927



4,515,226



4,633,359



4,310,088



4,521,419



3,932,616


Deposits


3,879,797



3,875,205



3,793,430



3,636,260



3,403,188



3,886,563



3,161,630


Interest-bearing liabilities


2,684,871



2,764,232



2,744,578



2,933,737



2,741,199



2,724,332



2,479,896


Stockholders' equity (common)


550,974



544,541



537,920



537,826



520,177



547,775



516,867


Selected Financial Ratios: (2)















Return on average assets


1.62

%


1.64

%


1.58

%


1.55

%


1.26

%


1.63

%


1.23

%

Return on average common equity


13.31



13.58



13.30



13.39



10.42



13.45



9.35


Return on average tangible common equity (1)


19.46



20.01



19.75



19.54



15.24



19.73



13.74


Average equity to average assets


12.17



12.06



11.91



11.61



12.07



12.12



13.14


Stockholders' equity to assets


12.19



12.11



11.85



11.43



11.72



12.19



11.72


Tangible common equity to tangible assets (1)


8.74



8.60



8.31



7.99



8.41



8.74



8.41


Net interest margin


3.45



3.31



3.29



3.06



3.21



3.38



3.53


Efficiency ratio


59.37



51.84



48.99



46.18



55.69



55.66



56.36


Effective tax rate


26.87



24.59



25.36



26.19



25.21



25.75



24.56


Selected Asset Quality Information:















Nonaccrual loans


$

6,932



$

8,965



$

9,455



$

10,997



$

11,998



$

6,932



$

11,998


Other real estate owned


2,895



3,797



3,608



1,000



1,000



2,895



1,000


Nonperforming assets


$

9,827



$

12,762



$

13,063



$

11,997



$

12,998



$

9,827



$

12,998


Net loan charge-offs (recoveries)


$

65



$

47



$

515



$

743



$

71



$

112



$

126


Allowance for credit losses-loans to loans


1.15

%


1.15

%


1.15

%


1.08

%


1.03

%


1.15

%


1.03

%

Net loan charge-offs to average loans (2)


0.01



0.01



0.07



0.10



0.01



0.01



0.01


Nonperforming loans to total loans


0.25



0.31



0.34



0.38



0.43



0.25



0.43


Nonperforming assets to total assets


0.21



0.28



0.29



0.25



0.29



0.21



0.29


Selected Other Information:















Tax-equivalent adjustment net interest income


$

232



$

252



$

260



$

249



$

229



$

484



$

460


Tax benefit on stock-based compensation


$

(20)



$

(234)



$

(77)



$

(14)



$

(24)



$

(254)



$

(347)


Common stock repurchased (dollars) (3)


$

12,453



$

4,102



$

12,909



$

13,732



$



$

16,555



$

13,903


Common stock repurchased (full shares) (3)


157,418



56,886



205,001



234,914





214,304



206,833


Non-GAAP Financial Measures: (1)















Total assets


$

4,587,347



$

4,543,804



$

4,551,789



$

4,706,375



$

4,541,228



$

4,587,347



$

4,541,228


Goodwill and other intangibles, net


173,711



174,501



175,353



176,213



164,094



173,711



164,094


Tangible assets


$

4,413,636



$

4,369,303



$

4,376,436



$

4,530,162



$

4,377,134



$

4,413,636



$

4,377,134


Stockholders' equity (common)


$

559,395



$

550,046



$

539,189



$

538,068



$

532,033



$

559,395



$

532,033


Goodwill and other intangibles, net


173,711



174,501



175,353



176,213



164,094



173,711



164,094


Tangible common equity


$

385,684



$

375,545



$

363,836



$

361,855



$

367,939



$

385,684



$

367,939


Average stockholders' equity (common)


$

550,974



$

544,541



$

537,920



$

537,826



$

520,177



$

547,775



$

516,867


Average goodwill and other intangibles, net


174,026



174,825



175,678



169,353



164,564



174,424



165,048


Average tangible common equity


$

376,948



$

369,716



$

362,242



$

368,473



$

355,613



$

373,351



$

351,819




1

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

2

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

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)






























At or for the Three Months Ended




June 30, 2021


March 31, 2021


June 30, 2020




Average




Average


Average




Average


Average




Average


(In thousands)


Balance


Interest


Rate


Balance


Interest


Rate


Balance


Interest


Rate


ASSETS




















PPP loans


$

205,639



$

4,862



9.35

%


$

206,498



$

3,951



7.65

%


$

264,705



$

1,786



2.67

%


Total loans ex PPP


2,663,466



30,267



4.50

%


2,619,166



29,934



4.57

%


2,559,161



32,008



4.96

%


Total loans (1) (2)


2,869,105



35,129



4.85

%


2,825,664



33,885



4.80

%


2,823,866



33,794



4.74

%


Investment securities (2)


537,632



2,794



2.08

%


528,342



2,588



1.96

%


489,597



2,752



2.25

%


Other interest-earning assets


702,657



616



0.35

%


735,597



655



0.36

%


604,036



575



0.38

%


Total interest-earning assets


4,109,394



$

38,539



3.72

%


4,089,603



$

37,128



3.63

%


3,917,499



$

37,121



3.76

%


Other assets, net


418,445







425,324







392,589







Total assets


$

4,527,839







$

4,514,927







$

4,310,088







LIABILITIES AND STOCKHOLDERS' EQUITY














Interest-bearing core deposits


$

2,387,730



$

1,523



0.26

%


$

2,395,948



$

1,841



0.31

%


$

2,054,574



$

3,170



0.62

%


Brokered deposits


253,816



910



1.44

%


316,589



1,081



1.38

%


342,776



1,285



1.51

%


Total interest-bearing deposits


2,641,546



2,433



0.37

%


2,712,537



2,922



0.44

%


2,397,350



4,455



0.75

%


PPPLF






0.00

%






0.00

%


237,153



210



0.35

%


Other interest-bearing liabilities


43,325



303



2.76

%


51,695



313



2.42

%


106,696



730



2.71

%


Total interest-bearing liabilities


2,684,871



$

2,736



0.41

%


2,764,232



$

3,235



0.47

%


2,741,199



$

5,395



0.79

%


Noninterest-bearing demand deposits


1,256,251







1,162,668







1,005,838







Other liabilities


35,743







43,486







42,874







Stockholders' equity


550,974







544,541







520,177







Total liabilities and stockholders' equity


$

4,527,839







$

4,514,927







$

4,310,088







Net interest income and rate spread




$

35,803



3.31

%




$

33,893



3.16

%




$

31,726



2.97

%


Net interest margin






3.45

%






3.31

%






3.21

%
























At or for the Six Months Ended










June 30, 2021


June 30, 2020










Average




Average


Average




Average








(In thousands)


Balance


Interest


Rate


Balance


Interest


Rate








ASSETS




















PPP loans


$

206,066



$

8,813



8.51

%


$

132,353



$

1,786



2.67

%








Total loans ex PPP


2,641,438



60,200



4.54

%


2,571,872



65,816



5.07

%








Total loans (1) (2)


2,847,504



69,013



4.83

%


2,704,225



67,602



4.95

%








Investment securities (2)


533,013



5,383



2.02

%


471,708



5,516



2.34

%








Other interest-earning assets


719,036



1,271



0.35

%


366,569



1,237



0.67

%








Total interest-earning assets


4,099,553



$

75,667



3.68

%


3,542,502



$

74,355



4.16

%








Other assets, net


421,866







390,114













Total assets


$

4,521,419







$

3,932,616













LIABILITIES AND STOCKHOLDERS' EQUITY














Interest-bearing core deposits


$

2,391,816



$

3,364



0.28

%


$

2,014,860



$

7,353



0.73

%








Brokered deposits


285,029



1,991



1.41

%


250,422



2,059



1.65

%








Total interest-bearing deposits


2,676,845



5,355



0.40

%


2,265,282



9,412



0.84

%








PPPLF






0.00

%


118,576



210



0.35

%








Other interest-bearing liabilities


47,487



616



2.58

%


96,038



1,513



3.12

%








Total interest-bearing liabilities


2,724,332



$

5,971



0.44

%


2,479,896



$

11,135



0.90

%








Noninterest-bearing demand deposits


1,209,718







896,348













Other liabilities


39,594







39,505













Stockholders' equity


547,775







516,867













Total liabilities and stockholders' equity


$

4,521,419







$

3,932,616













Net interest income and rate spread




$

69,696



3.24

%




$

63,220



3.26

%








Net interest margin






3.38

%






3.53

%









(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.

 

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SOURCE Nicolet Bankshares, Inc.

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