Nicolet Bankshares Q2 2024 Update

TL;DR

Nicolet Bankshares Q2 2024 10-Q filed. Deposit and card data detailed.

AI Summary

Nicolet Bankshares Inc. reported its financial results for the quarter ending June 30, 2024. The company's filing details its financial position and performance, including information on deposit accounts and credit/debit card activities. Specific financial figures and operational details for the period are outlined within the report.

Why It Matters

This filing provides insight into the financial health and operational performance of Nicolet Bankshares Inc. during the second quarter of 2024, which can influence investor decisions and market perception.

Risk Assessment

Risk Level: low — The filing is a standard quarterly report with no immediate red flags indicating high risk.

Key Numbers

• 2024 Q2 — Reporting Period (Indicates the second quarter of 2024 financial data.)
• 1231 — Fiscal Year End (Specifies the end of the company's fiscal year.)

Key Players & Entities

• NICOLET BANKSHARES INC (company) — Filer
• 20240630 (date) — Period of Report
• 20240805 (date) — Filing Date
• WI (location) — State of Incorporation
• GREEN BAY (location) — Business Address City

FAQ

Key Financial Figures

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

Filing Documents

• nic-20240630.htm (10-Q) — 3495KB
• nic-2q24x10qex101.htm (EX-10.1) — 137KB
• nic-2q24x10qxex311.htm (EX-31.1) — 10KB
• nic-2q24x10qxex312.htm (EX-31.2) — 10KB
• nic-2q24x10qxex321.htm (EX-32.1) — 4KB
• nic-2q24x10qxex322.htm (EX-32.2) — 4KB
• nic-20240630_g1.jpg (GRAPHIC) — 43KB
• 0001174850-24-000036.txt ( ) — 16094KB
• nic-20240630.xsd (EX-101.SCH) — 51KB
• nic-20240630_cal.xml (EX-101.CAL) — 119KB
• nic-20240630_def.xml (EX-101.DEF) — 399KB
• nic-20240630_lab.xml (EX-101.LAB) — 766KB
• nic-20240630_pre.xml (EX-101.PRE) — 612KB
• nic-20240630_htm.xml (XML) — 3833KB

Financial Statements

Financial Statements: Consolidated Balance Sheets 3 Consolidated Statements of Income 4 Consolidated Statements of Comprehensive Income 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 48 Item 4.

Controls and Procedures

Controls and Procedures 49 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 49 Item 1A.

Risk Factors

Risk Factors 49 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 49 Item 5. Other Information 49 Item 6. Exhibits 50

– 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) June 30, 2024 December 31, 2023 (Unaudited) (Audited) Assets Cash and due from banks $ 109,674 $ 129,898 Interest-earning deposits 298,856 361,533 Cash and cash equivalents 408,530 491,431 Certificates of deposit in other banks 3,924 6,374 Securities available for sale ("AFS"), at fair value 799,937 802,573 Other investments 60,796 57,560 Loans held for sale 9,450 4,160 Loans 6,529,134 6,353,942 Allowance for credit losses - loans ("ACL-Loans") ( 65,414 ) ( 63,610 ) Loans, net 6,463,720 6,290,332 Premises and equipment, net 120,988 118,756 Bank owned life insurance ("BOLI") 171,972 169,392 Goodwill and other intangibles, net 391,421 394,366 Accrued interest receivable and other assets 126,279 133,734 Total assets $ 8,557,017 $ 8,468,678 Liabilities and Stockholders' Equity Liabilities: Noninterest-bearing demand deposits $ 1,764,806 $ 1,958,709 Interest-bearing deposits 5,476,272 5,239,091 Total deposits 7,241,078 7,197,800 Short-term borrowings — — Long-term borrowings 162,433 166,930 Accrued interest payable and other liabilities 62,093 64,941 Total liabilities 7,465,604 7,429,671 Stockholders' Equity: Common stock 150 149 Additional paid-in capital 639,159 633,770 Retained earnings 507,366 458,261 Accumulated other comprehensive income (loss) ( 55,262 ) ( 53,173 ) Total stockholders' equity 1,091,413 1,039,007 Total liabilities and stockholders' equity $ 8,557,017 $ 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 14,945,598 14,894,209 Common shares issued 15,010,256 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 (In thousands, except share and per share data) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Interest income: Loans, including loan fees $ 97,975 $ 84,091 $ 191,623 $ 163,233 Investment securities: Taxable 5,056 4,133 9,613 9,094 Tax-exempt 1,152 1,476 2,390 3,213 Other interest income 4,695 2,357 9,283 3,893 Total interest income 108,878 92,057 212,909 179,433 Interest expense: Deposits 41,386 29,340 80,376 54,277 Short-term borrowings — 1,108 — 4,320 Long-term borrowings 2,150 2,570 4,384 5,076 Total interest expense 43,536 33,018 84,760 63,673 Net interest income 65,342 59,039 128,149 115,760 Provision for credit losses 1,350 450 2,100 3,540 Net interest income after provision for credit losses 63,992 58,589 126,049 112,220 Noninterest income: Wealth management fee income 6,674 5,870 13,159 11,382 Mortgage income, net 2,634 1,822 3,998 3,288 Service charges on deposit accounts 1,813 1,529 3,394 3,009 Card interchange income 3,458 3,331 6,556 6,364 BOLI income 1,225 1,073 2,572 2,273 Deferred compensation plan asset market valuations 169 499 228 1,445 LSR income, net 1,117 1,135 2,251 2,290 Asset gains (losses), net 616 ( 318 ) 2,525 ( 38,786 ) Other income 1,903 1,900 4,348 3,732 Total noninterest income 19,609 16,841 39,031 ( 5,003 ) Noninterest expense: Personnel 26,285 23,900 52,795 48,228 Occupancy, equipment and office 8,681 8,845 17,625 17,628 Business development and marketing 2,040 1,946 4,182 4,067 Data processing 4,281 4,218 8,551 8,206 Intangibles amortization 1,762 2,083 3,595 4,244 FDIC assessments 990 1,009 2,023 1,549 Merger-related expense — 26 — 189 Other expense 2,814 2,930 5,229 5,721 Total noninterest expense 46,853 44,957 94,000 89,832 Income before income tax expense 36,748 30,473 71,080 17,385 Income tax expense 7,475 7,878 14,017 3,688 Net income $

Financial Statements Continued

ITEM 1. Financial Statements Continued : NICOLET BANKSHARES, INC. Consolidated Statements of Comprehensive Income (In thousands) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net income $ 29,273 $ 22,595 $ 57,063 $ 13,697 Other comprehensive income (loss), net of tax: Unrealized gains (losses) on securities AFS: Net unrealized holding gains (losses) 270 ( 5,893 ) ( 1,500 ) 9,401 Net realized (gains) losses included in income — 135 ( 968 ) 348 Reclassification adjustment for securities transferred from held to maturity to available for sale — — — ( 20,434 ) Income tax (expense) benefit ( 122 ) 1,556 379 2,886 Total other comprehensive income (loss) 148 ( 4,202 ) ( 2,089 ) ( 7,799 ) Comprehensive income $ 29,421 $ 18,393 $ 54,974 $ 5,898 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 March 31, 2024 $ 149 $ 636,621 $ 482,295 $ ( 55,410 ) $ 1,063,655 Comprehensive income: Net income, three months ended June 30, 2024 — — 29,273 — 29,273 Other comprehensive income (loss) — — — 148 148 Stock-based compensation expense — 2,215 — — 2,215 Cash dividends on common stock, $ 0.28 per share — — ( 4,202 ) — ( 4,202 ) Exercise of stock options, net 1 96 — — 97 Issuance of common stock — 227 — — 227 Balances at June 30, 2024 $ 150 $ 639,159 $ 507,366 $ ( 55,262 ) $ 1,091,413 Balances at March 31, 2023 $ 147 $ 623,746 $ 398,966 $ ( 61,067 ) $ 961,792 Comprehensive income: Net income, three months ended June 30, 2023 — — 22,595 — 22,595 Other comprehensive income (loss) — — — ( 4,202 ) ( 4,202 ) Stock-based compensation expense — 2,006 — — 2,006 Cash dividends on common stock, $ 0.25 per share — — ( 3,698 ) — ( 3,698 ) Exercise of stock options, net 1 451 — — 452 Issuance of common stock — 214 — — 214 Purchase and retirement of common stock ( 1 ) ( 1,520 ) — — ( 1,521 ) Balances at June 30, 2023 $ 147 $ 624,897 $ 417,863 $ ( 65,269 ) $ 977,638 Balances at December 31, 2023 $ 149 $ 633,770 $ 458,261 $ ( 53,173 ) $ 1,039,007 Comprehensive income: Net income, six months ended June 30, 2024 — — 57,063 — 57,063 Other comprehensive income (loss) — — — ( 2,089 ) ( 2,089 ) Stock-based compensation expense — 3,596 — — 3,596 Cash dividends on common stock, $ 0.53 per share — — ( 7,958 ) — ( 7,958 ) Exercise of stock options, net 1 1,364 — — 1,365 Issuance of common stock — 429 — — 429 Balances at June 30, 2024 $ 150 $ 639,159 $ 507,366 $ ( 55,262 ) $ 1,091,413 Balances at December 31, 2022 $ 147 $ 621,988 $ 407,864 $ ( 57,470 ) $ 972,529 Comprehensive income: Net i

Financial Statements Continued

ITEM 1. Financial Statements Continued : NICOLET BANKSHARES, INC. Consolidated Statements of Cash Flows (Unaudited) (In thousands) Six Months Ended June 30, 2024 2023 Cash Flows From Operating Activities: Net income $ 57,063 $ 13,697 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation, amortization, and accretion 9,244 9,274 Provision for credit losses 2,100 3,540 Increase in cash surrender value of life insurance ( 2,572 ) ( 2,159 ) Stock-based compensation expense 3,596 3,430 Asset (gains) losses, net ( 2,525 ) 38,786 Gain on sale of loans held for sale, net ( 3,068 ) ( 1,860 ) Proceeds from sale of loans held for sale 89,310 64,117 Origination of loans held for sale ( 92,425 ) ( 65,244 ) Net change due to: Accrued interest receivable and other assets 2,843 ( 3,846 ) Accrued interest payable and other liabilities ( 2,848 ) ( 11,368 ) Net cash provided by (used in) operating activities 60,718 48,367 Cash Flows From Investing Activities: Net (increase) decrease in loans ( 172,460 ) ( 39,223 ) Net (increase) decrease in certificates of deposit in other banks 2,450 2,710 Purchases of securities AFS ( 75,412 ) — Proceeds from sales of securities AFS 4,987 26,798 Proceeds from sales of securities HTM — 460,051 Proceeds from calls and maturities of securities AFS 70,003 133,027 Proceeds from calls and maturities of securities HTM — 2,916 Purchases of other investments ( 798 ) ( 12,022 ) Proceeds from sales of other investments 1,270 18,883 Proceeds from redemption of BOLI — 117 Net (increase) decrease in premises and equipment ( 6,273 ) ( 12,565 ) Net (increase) decrease in other real estate and other assets ( 490 ) 794 Net cash provided by (used in) investing activities ( 176,723 ) 581,486 Cash Flows From Financing Activities: Net increase (decrease) in deposits 43,278 19,849 Net increase (decrease) in short-term borrowings — ( 267,000 ) Repayments of long-term borrowing

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