Nicolet Bankshares Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Nicolet Bankshares Inc. has filed its Q1 2024 10-Q report, detailing financial positions and activities.</b>

AI Summary

NICOLET BANKSHARES INC (NIC) filed a Quarterly Report (10-Q) with the SEC on May 8, 2024. Nicolet Bankshares Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. Key financial statement items include common stock, additional paid-in capital, retained earnings, and accumulated other comprehensive income. The company's fiscal year ends on December 31. Nicolet Bankshares Inc. is classified under National Commercial Banks (SIC 6021).

Why It Matters

For investors and stakeholders tracking NICOLET BANKSHARES INC, this filing contains several important signals. This filing provides investors with the latest financial performance and position of Nicolet Bankshares Inc. for the first quarter of 2024. Understanding the details in this 10-Q is crucial for assessing the bank's financial health, operational performance, and potential future trajectory.

Risk Assessment

Risk Level: low — NICOLET BANKSHARES INC shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain any immediate red flags or significant negative developments, indicating a routine disclosure.

Analyst Insight

Monitor future filings for trends in deposit growth, loan portfolios, and net interest income to gauge the bank's ongoing performance.

Key Numbers

• 2024-03-31 — Period End Date (Quarterly report period)
• 2024-05-08 — Filing Date (Date the 10-Q was filed)
• 2024-01-01 — Quarter Start Date (Beginning of the reporting quarter)
• 2023-12-31 — Prior Year End Date (End of the previous fiscal year)

Key Players & Entities

• NICOLET BANKSHARES INC (company) — Filer name
• 2024-03-31 (date) — Period of report
• 2024-05-08 (date) — Filing date
• WI (location) — State of incorporation and business address
• 111 N WASHINGTON ST (address) — Business and mail address
• GREEN BAY (location) — City of business and mail address
• 920 430 1400 (phone) — Business phone number
• 6021 (sic_code) — Standard Industrial Classification for National Commercial Banks

FAQ

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-05-08: Filing Date — Date the 10-Q was officially submitted to the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides a comprehensive update on a company's financial performance and position between annual reports.)

Common Stock

A security that represents ownership in a corporation. (Indicates the equity structure and ownership base of Nicolet Bankshares Inc.)

Retained Earnings

The cumulative amount of net income of a corporation that has not been distributed to its shareholders as dividends. (Reflects the company's historical profitability and its reinvestment strategy.)

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share NIC New York Stock Exchange

Filing Documents

• nic-20240331.htm (10-Q) — 3106KB
• nic-1q24x10qxex311.htm (EX-31.1) — 10KB
• nic-1q24x10qxex312.htm (EX-31.2) — 10KB
• nic-1q24x10qxex321.htm (EX-32.1) — 4KB
• nic-1q24x10qxex322.htm (EX-32.2) — 4KB
• nic-20240331_g1.jpg (GRAPHIC) — 44KB
• 0001174850-24-000025.txt (&nbsp;) — 15156KB
• nic-20240331.xsd (EX-101.SCH) — 51KB
• nic-20240331_cal.xml (EX-101.CAL) — 118KB
• nic-20240331_def.xml (EX-101.DEF) — 403KB
• nic-20240331_lab.xml (EX-101.LAB) — 749KB
• nic-20240331_pre.xml (EX-101.PRE) — 608KB
• nic-20240331_htm.xml (XML) — 3748KB

Financial Statements

Financial Statements: Consolidated Balance Sheets 3 Consolidated Statements of Income (Loss) 4 Consolidated Statements of Comprehensive Income (Loss) 5 Consolidated Statements of Stockholders' Equity 6 Consolidated Statements of Cash Flows 7 Notes to Unaudited Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 29 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 46 Item 4.

Controls and Procedures

Controls and Procedures 47 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 47 Item 1A.

Risk Factors

Risk Factors 47 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 47 Item 3. Defaults Upon Senior Securities 47 Item 4. Mine Safety Disclosures 47 Item 5. Other Information 48 Item 6. Exhibits 48

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

Item 1. FINANCIAL STATEMENTS: NICOLET BANKSHARES, INC. Consolidated Balance Sheets (In thousands, except share and per share data) March 31, 2024 December 31, 2023 (Unaudited) (Audited) Assets Cash and due from banks $ 81,677 $ 129,898 Interest-earning deposits 345,747 361,533 Cash and cash equivalents 427,424 491,431 Certificates of deposit in other banks 5,639 6,374 Securities available for sale ("AFS"), at fair value 803,963 802,573 Other investments 60,464 57,560 Loans held for sale 5,022 4,160 Loans 6,397,617 6,353,942 Allowance for credit losses - loans ("ACL-Loans") ( 64,347 ) ( 63,610 ) Loans, net 6,333,270 6,290,332 Premises and equipment, net 119,962 118,756 Bank owned life insurance ("BOLI") 170,746 169,392 Goodwill and other intangibles, net 393,183 394,366 Accrued interest receivable and other assets 126,989 133,734 Total assets $ 8,446,662 $ 8,468,678 Liabilities and Stockholders' Equity Liabilities: Noninterest-bearing demand deposits $ 1,665,229 $ 1,958,709 Interest-bearing deposits 5,500,503 5,239,091 Total deposits 7,165,732 7,197,800 Short-term borrowings — — Long-term borrowings 162,257 166,930 Accrued interest payable and other liabilities 55,018 64,941 Total liabilities 7,383,007 7,429,671 Stockholders' Equity: Common stock 149 149 Additional paid-in capital 636,621 633,770 Retained earnings 482,295 458,261 Accumulated other comprehensive income (loss) ( 55,410 ) ( 53,173 ) Total stockholders' equity 1,063,655 1,039,007 Total liabilities and stockholders' equity $ 8,446,662 $ 8,468,678 Preferred shares authorized ( no par value) 10,000,000 10,000,000 Preferred shares issued and outstanding — — Common shares authorized (par value $ 0.01 per share) 30,000,000 30,000,000 Common shares outstanding 14,930,549 14,894,209 Common shares issued 14,987,207 14,951,367 See accompanying notes to unaudited consolidated financial statements. 3

Financial Statements Continued

ITEM 1. Financial Statements Continued : NICOLET BANKSHARES, INC. Consolidated Statements of Income (Loss) (In thousands, except share and per share data) (Unaudited) Three Months Ended March 31, 2024 2023 Interest income: Loans, including loan fees $ 93,648 $ 79,142 Investment securities: Taxable 4,557 4,961 Tax-exempt 1,238 1,737 Other interest income 4,588 1,536 Total interest income 104,031 87,376 Interest expense: Deposits 38,990 24,937 Short-term borrowings — 3,212 Long-term borrowings 2,234 2,506 Total interest expense 41,224 30,655 Net interest income 62,807 56,721 Provision for credit losses 750 3,090 Net interest income after provision for credit losses 62,057 53,631 Noninterest income: Wealth management fee income 6,485 5,512 Mortgage income, net 1,364 1,466 Service charges on deposit accounts 1,581 1,480 Card interchange income 3,098 3,033 BOLI income 1,347 1,200 Deferred compensation plan asset market valuations 59 946 LSR income, net 1,134 1,155 Asset gains (losses), net 1,909 ( 38,468 ) Other income 2,445 1,832 Total noninterest income 19,422 ( 21,844 ) Noninterest expense: Personnel 26,510 24,328 Occupancy, equipment and office 8,944 8,783 Business development and marketing 2,142 2,121 Data processing 4,270 3,988 Intangibles amortization 1,833 2,161 FDIC assessments 1,033 540 Merger-related expense — 163 Other expense 2,415 2,791 Total noninterest expense 47,147 44,875 Income (loss) before income tax expense (benefit) 34,332 ( 13,088 ) Income tax expense (benefit) 6,542 ( 4,190 ) Net income (loss) $ 27,790 $ ( 8,898 ) Earnings (loss) per common share: Basic $ 1.86 $ ( 0.61 ) Diluted $ 1.82 $ ( 0.61 ) Weighted average common shares outstanding: Basic 14,907,124 14,694,451 Diluted 15,249,179 14,694,451 See accompanying notes to unaudited consolidated financial statements. 4

Financial Statements Continued

ITEM 1. Financial Statements Continued : NICOLET BANKSHARES, INC. Consolidated Statements of Comprehensive Income (Loss) (In thousands) (Unaudited) Three Months Ended March 31, 2024 2023 Net income (loss) $ 27,790 $ ( 8,898 ) Other comprehensive income (loss), net of tax: Unrealized gains (losses) on securities AFS: Net unrealized holding gains (losses) ( 1,770 ) 15,294 Net realized (gains) losses included in income ( 968 ) 213 Reclassification adjustment for securities transferred from held to maturity to available for sale — ( 20,434 ) Income tax (expense) benefit 501 1,330 Total other comprehensive income (loss) ( 2,237 ) ( 3,597 ) Comprehensive income (loss) $ 25,553 $ ( 12,495 ) See accompanying notes to unaudited consolidated financial statements. 5

Financial Statements Continued

ITEM 1. Financial Statements Continued : NICOLET BANKSHARES, INC. Consolidated Statements of Stockholders' Equity (In thousands) (Unaudited) Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Balances at December 31, 2023 $ 149 $ 633,770 $ 458,261 $ ( 53,173 ) $ 1,039,007 Comprehensive income: Net income, three months ended March 31, 2024 — — 27,790 — 27,790 Other comprehensive income (loss) — — — ( 2,237 ) ( 2,237 ) Stock-based compensation expense — 1,381 — — 1,381 Cash dividends on common stock, $ 0.25 per share — — ( 3,756 ) — ( 3,756 ) Exercise of stock options, net — 1,268 — — 1,268 Issuance of common stock — 202 — — 202 Balances at March 31, 2024 $ 149 $ 636,621 $ 482,295 $ ( 55,410 ) $ 1,063,655 Balances at December 31, 2022 $ 147 $ 621,988 $ 407,864 $ ( 57,470 ) $ 972,529 Comprehensive income: Net income (loss), three months ended March 31, 2023 — — ( 8,898 ) — ( 8,898 ) Other comprehensive income (loss) — — — ( 3,597 ) ( 3,597 ) Stock-based compensation expense — 1,424 — — 1,424 Exercise of stock options, net — 148 — — 148 Issuance of common stock — 186 — — 186 Balances at March 31, 2023 $ 147 $ 623,746 $ 398,966 $ ( 61,067 ) $ 961,792 See accompanying notes to unaudited consolidated financial statements. 6

Financial Statements Continued

ITEM 1. Financial Statements Continued : NICOLET BANKSHARES, INC. Consolidated Statements of Cash Flows (Unaudited) (In thousands) Three Months Ended March 31, 2024 2023 Cash Flows From Operating Activities: Net income (loss) $ 27,790 $ ( 8,898 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation, amortization, and accretion 4,797 4,197 Provision for credit losses 750 3,090 Increase in cash surrender value of life insurance ( 1,347 ) ( 1,087 ) Stock-based compensation expense 1,381 1,424 Asset (gains) losses, net ( 1,909 ) 38,468 Gain on sale of loans held for sale, net ( 1,090 ) ( 612 ) Proceeds from sale of loans held for sale 29,261 17,789 Origination of loans held for sale ( 29,360 ) ( 20,861 ) Net change due to: Accrued interest receivable and other assets 3,032 ( 2,326 ) Accrued interest payable and other liabilities ( 9,923 ) ( 15,642 ) Net cash provided by (used in) operating activities 23,382 15,542 Cash Flows From Investing Activities: Net (increase) decrease in loans ( 42,188 ) ( 41,764 ) Net (increase) decrease in certificates of deposit in other banks 735 1,225 Purchases of securities AFS ( 48,042 ) — Proceeds from sales of securities AFS 4,987 22,565 Proceeds from sales of securities HTM — 460,051 Proceeds from calls and maturities of securities AFS 39,009 42,028 Proceeds from calls and maturities of securities HTM — 2,916 Purchases of other investments ( 230 ) ( 3,801 ) Proceeds from sales of other investments 625 11,108 Proceeds from redemption of BOLI — 117 Net (increase) decrease in premises and equipment ( 3,325 ) ( 5,646 ) Net (increase) decrease in other real estate and other assets ( 596 ) — Net cash provided by (used in) investing activities ( 49,025 ) 488,799 Cash Flows From Financing Activities: Net increase (decrease) in deposits ( 32,068 ) ( 250,218 ) Net increase (decrease) in short-term borrowings — ( 267,000 ) Repayments of long-

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