GREEN BAY, Wis., July 21, 2020 /PRNewswire/ -- Nicolet Bankshares,
Inc. (NASDAQ: NCBS) ("Nicolet") announced second quarter 2020 net
income of $13.5 million and earnings
per diluted common share of $1.28,
compared to $10.6 million and
$0.98 for first quarter 2020, and
$18.5 million and $1.91 for second quarter 2019,
respectively. Annualized quarterly return on average assets
was 1.26%, 1.19% and 2.46%, for second quarter 2020, first quarter
2020 and second quarter 2019, respectively.
Net income for the six months ended June
30, 2020 was $24.0 million and
earnings per common share was $2.25,
compared to net income of $28.8
million and earnings per diluted common share of
$2.97 for the first half of 2019.
Annualized return on average assets was 1.23% and 1.91% for
the first six months of 2020 and 2019, respectively.
Net income for second quarter 2019 included $5.4 million from two nonrecurring items, a
$7.4 million after-tax gain on the
partial sale of its equity interest in a data processing company,
and $2.75 million ($2.0 million after-tax) in personnel expense for
retirement-related compensation declared. Therefore, excluding the
$5.4 million from the 2019 periods,
net income would be $13.1 million and
$23.4 million for the three and six
months ended June 30, 2019, or a
$0.4 million (3%) increase in net
income between the second quarter periods and a $0.6 million (3%) increase between the six month
periods.
"Our second quarter earnings were strong, led by record
secondary mortgage revenues, and our balance sheet has ballooned to
over $4.5 billion in assets, largely
from the SBA's Paycheck Protection Program ("PPP") loans and high
cash levels," said Bob Atwell,
Chairman and CEO of Nicolet. "While long-term visibility remains
foggy, necessitating caution, we feel better than we did in April
about controlling what we can control. We believe even more
today that our strategy of shared success for customers, employees
and shareholders will be the cornerstone of our long term success
as we move forward and beyond current events."
"Amid the unusual dynamics brought on by various responses to
the pandemic and recession, we executed on our core business and
took care of our customers during a very unsettling yet busy
period," Atwell said.
Nicolet originated $340 million of
PPP loans this quarter for nearly 2,550 business customers, which
supported approximately 40,000 employees in those underlying
businesses. We created a micro-grant program, providing
$1.25 million of funds directly to
325 customers who otherwise qualified for a small PPP loan of less
than $5,000, no strings attached, as
a more cost beneficial, timely and impactful result for the
customer and the bank. It represented a direct give back of 10% of
the PPP fees subsequently earned. Since the pandemic started,
payment modifications were made on over 900 loans totaling
$447 million, most of which were
commercial. For retail customers purchasing new homes or
refinancing, we processed a record of nearly 1,500 mortgage loans
this quarter. For two months we provided service charge
waivers to small businesses and auto-qualified retail customers for
our popular 3% checking product. Our financial advisors, lenders
and bankers counseled countless clients through a period of
dramatic volatility and uncertain futures.
"I am very proud of the teamwork exhibited by our employees to
process this extraordinary loan volume, including back office and
branch personnel redirected into the work flow," said Mike Daniels, President and CEO of Nicolet National Bank. "We conducted this
significant business activity, while remaining diligent on keeping
customers and employees safe under less than usual conditions."
"Focusing on safety, our early pandemic response included
lobby-by-appointment-only periods at all but 11 branches that were
temporarily closed. Senior management and back office
departments were separated to address succession and redundancy
concerns, and many employees worked remotely from home. Also, we
aggressively procured masks and other protective supplies," Daniels
said. Costs associated with on-site bonuses, testing, and
protective supplies totaled $0.6
million for second quarter 2020.
"During the temporary branch closure period, we helped customers
find good alternatives to visiting these locations, including
directing them to nearby locations, remote deposit and mobile
banking. Our customers responded well to the change, which helped
confirm that banking with Nicolet matters more to our customers
than the physical location of the office," said Daniels.
"Therefore, we decided to permanently close seven (18%) of our 39
branches (one each in Oshkosh,
Appleton, Suamico, Brussels, Kewaunee, Fish
Creek, and Ellison Bay),
which also reduced headcount by 56 employees (nearly 10% of our
workforce)." As a result, $1.7
million of one-time costs were recorded during second
quarter related to lease terminations, severance, accelerated
depreciation and write-offs. Annual savings, once the
underlying properties are sold, are estimated to be $3 million, primarily in personnel
costs.
At the start of the pandemic, Nicolet employed approximately 600
people and at peak points had 34% working remotely, 18% paid but
not working due to risk concerns or location closure, and the
remainder of employees working on site. At June 30, 2020, Nicolet employed 544 people, with
the decline primarily due to the branch closures and
efficiencies.
"Selected branch closings are forward-looking actions that
support our people-centered strategy in a rapidly automating
environment," Atwell stated. "We will continue to focus on
configuring the company to serve the customer's needs and
experience more efficiently and effectively. "
Balance Sheet Review
At June 30, 2020, period end assets were $4.5 billion, an
increase of $809 million (22%) over
March 31. The quarter-over-quarter
increase in assets was predominantly due to higher cash and cash
equivalents (up $581 million to
$823 million, commensurate with the
increase in total deposits) and loans (up $214 million or 8% to $2.8
billion at June 30).
Total deposits of $3.5 billion at June 30, 2020, increased $514 million (17%) over March 31, a large contributor to the heavy cash
position this quarter. This unusually large increase in
deposits was influenced by the unique circumstances including, the
government stimulus payments and pandemic stay-at-home orders,
which reduced spending and increased liquidity of consumers and
businesses, and by PPP loan proceeds retained on deposit by
corporate borrowers. Noninterest-bearing demand deposits accounted
for the largest increase since March
31 (up $296 million or 37% to
$1.1 billion at June 30, primarily due to the deposited PPP loan
proceeds). Transaction accounts combined (i.e. savings, money
markets and interest-bearing checking) increased $192 million (13%) to $1.7
billion at June 30, and
brokered deposits grew $65 million
(23%) to $346 million, in part to
reduce other wholesale funding, while core time deposits declined
$38 million (9%) to $378 million, largely moving into transaction
accounts.
Since March 31, loans increased
$329 million from the carrying value
of PPP loans, and declined $115
million (4%) in the remaining loan portfolio (led by
commercial lines of credit which were down $111 million), as many commercial customers
funded their current needs through the PPP and exercised caution in
this volatile and uncertain business climate.
The PPP loans provided low 1% coupon and potentially forgivable
funds to small businesses, and are fully guaranteed by the SBA
warranting no credit loss provisioning. Nicolet earned on average a
3.53% fee or $12.2 million from the
SBA to process and service the PPP loans. This aggregate fee was
deferred and will be accreted ratably into interest income over the
life of the PPP loan pool, which may accelerate if loans payoff
sooner. Nicolet accreted $1.1
million into interest income for the second quarter of
2020. Using the PPP loans as collateral, Nicolet funded the
PPP loans through the Federal Reserve's Paycheck Protection Program
Liquidity Facility ("PPPLF"), which cost 0.35% and totaled
$336 million at June 30, 2020. PPP loans funded by PPPLF are
given a zero risk-weight in regulatory risk-based capital ratios
and are excluded from average assets in the regulatory leverage
ratio.
Total capital was $532 million at
June 30, 2020, an increase of
$21 million since March 31, 2020, mostly due to solid earnings and
positive net fair value investment changes. The Company's share
repurchase program was temporarily suspended effective March 21, 2020, in response to the uncertain
future economic conditions due to the pandemic. Management intends
to resume repurchases in the third quarter given current
conditions, market opportunities and financial performance of the
bank. At June 30, 2020, there
remained $7.1 million authorized
under the repurchase program, as modified, to be utilized from
time-to-time to repurchase shares in the open market, through block
transactions or in private transactions.
Asset Quality
"As the first quarter ended, we significantly increased the
provision for loan losses to $3
million, with nearly no forward visibility in the wake of an
emerging pandemic and recession," Atwell said. "With better
but still limited forward visibility and no material degradation of
our current asset quality metrics, we provided an additional
$3 million in the second
quarter. We feel this provides appropriate consideration for
the continued uncertainty about the extent and duration of current
credit stress on our customers. That said, we are encouraged by the
liquidity of, operating performance of and precautions taken by our
borrowers to date, which may indicate that less aggressive
provisioning may be warranted in the future," commented Atwell.
Since the pandemic started, over 900 loans (88% commercial and
12% retail) were provided payment modifications on loans totaling
$447 million (67% interest only and
33% full payment deferrals) generally for 90 to 120 days,
consistent with guidelines of the CARES Act. As of July 9, 24% of these have returned to normal
payment structures, 11% received a secondary extension to interest
only for up to 90 more days (after bringing accrued interest
current), and the remainder should end their initial modification
periods by early September.
Nonperforming assets decreased to $13
million at June 30, to
represent 0.29% of total assets compared to 0.42% at March 31. Since the prior quarter, the allowance
for credit losses-loans increased to $29
million, due to the $3.0
million provision for credit losses recognized against
negligible charge-offs during the quarter of $0.1 million or 0.01% of average loans,
annualized. At June 30, 2020,
the allowance represented 1.03% of total loans, and represented
1.17% of total loans excluding the net carrying value of PPP
loans.
Income Statement Review
Net income for second quarter 2020 was $13.5
million, $2.9 million or 28%
stronger than first quarter 2020, led by stellar mortgage income,
partly offset by elevated expense.
While second quarter 2020 net interest income of $31.5 million was minimally different from first
quarter 2020 (up $0.2 million or less
than 1%), there were dramatic underlying changes, predominantly the
inclusion of PPP loans and PPPLF, and significantly higher average
cash balances earning significantly less given the timing of the
150bps decline in the Federal funds rate in mid-March. On a
linked quarter basis, average interest earning assets increased
$750 million (24%), due to growth in
average loans (up $239 million net,
with PPP loans up $265 million
offsetting a decline in remaining loans), investments (up
$36 million) and other interest
earning assets which are predominantly cash (up $475 million, to represent 15% of
interest-earning assets for second quarter 2020 versus 4% for first
quarter 2020). Average interest bearing liabilities increased
$523 million (24%) on a linked
quarter basis, comprised of $264
million higher interest-bearing deposits (with brokered
deposits up $185 million on average
given the $200 million liquidity
build executed in late March to early April at an approximately 1%
net negative spread, and generally rising core deposits),
$237 million of new PPPLF funding,
and $21 million higher other
interest-bearing liabilities. Further adding to the heavy
cash position and net free funds was average noninterest-bearing
demand deposits, totaling $1.0
billion for second quarter compared to $787 million in first quarter 2020, mainly due to
deposited PPP loan proceeds.
The net interest margin for second quarter 2020 was 3.21%, down
from 3.94% for first quarter 2020, heavily influenced by the
changing balance sheet mix, especially to low-earning cash. The
yield on earning assets of 3.76% declined 90bps from first quarter
2020, mostly due to the dramatic increase in cash that generally
earns 10 bps since March 2020, as
well as the low rate on the PPP loans. The yield on loans
excluding PPP loans was 4.96%, 23bps lower than first quarter 2020
mostly attributable to the impact of the lower rate environment on
variable loans partly offset by floors and the increased mix of
fixed rate loans which dampened the impact of the rate decrease.
The cost of funds of 0.79% declined 25bps during the same period,
as both deposit and other funding costs were adjusted down in the
lower rate environment, as well as the inclusion of PPPLF funds
costing 35bps.
Second quarter noninterest income of $17.5 million increased $7.9 million (82%) compared to first quarter
2020, driven by strong secondary mortgage income. Net
mortgage income increased $7.6 million, from higher sale gains and
capitalized gains combined (up $6.2
million or 205%, commensurate with the increase in volumes
sold into the secondary market, aided by the current refinance
boom), and a $1.4 million favorable
swing in the marks to fair value the mortgage servicing asset and
mortgage derivatives combined. Other noninterest income increased
$1.0 million over first quarter
largely due to market recoveries since March on the value of
nonqualified deferred compensation plan assets. Service
charges on deposit accounts decreased $0.4 million or 34% between the
sequential quarters, mainly as we waived certain fees to provide
economic relief to our customers in the second quarter.
Noninterest expense of $27.8
million increased $4.0 million
(17%) from first quarter 2020. Personnel increased $1.2 million largely due to nonqualified deferred
compensation expense, which increased $1.2
million related to the plan asset recoveries noted above,
$0.2 million higher overtime to
process mortgage and PPP volume, $0.4
million of on-site bonus pay, and $0.2 million of severance costs related to the
branch closures, offset by $0.8
million of reduced personnel fringes and incentive accruals
between the sequential quarters. All non-personnel expenses
combined increased $2.8 million
from first quarter 2020, as second quarter 2020 included expense of
$1.5 million related to the branch
closures (mostly lease termination charges), $1.25 million for the micro-grant program, and
$0.5 million to terminate the
Commerce Financial Holdings, Inc. ("Commerce") merger
agreement.
Acquisitions Update
On May 18, 2020, Nicolet and Commerce
announced a mutual agreement to terminate their merger agreement
dated February 17, 2020. Nicolet paid
Commerce $0.5 million and surrendered
its $0.1 million of Commerce common
stock.
Nicolet's pending acquisition of Advantage Community Bancshares,
Inc. ("Advantage") has received all necessary regulatory approvals,
as well as approval from Advantage shareholders. The merger
is expected to close August 21, and
Advantage's four branches in Dorchester, Edgar, Mosinee and Wausau will open as Nicolet branches on
August 24. Due to the small
size of the transaction, terms of the all-cash deal were not
disclosed. At June 30, 2020,
Advantage had total assets of $160
million, loans of $89 million,
deposits of $135 million, and equity
of $21 million.
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
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
which Congress passed in an effort to encourage companies to
provide information about their anticipated future financial
performance. This act protects a company from unwarranted
litigation if actual results are different from management
expectations. This report reflects the current views and estimates
of future economic circumstances, industry conditions, company
performance, and financial results of the management of Nicolet.
These forward-looking statements are subject to a number of factors
and uncertainties which could cause Nicolet's actual results and
experience to differ from the anticipated results and expectations
expressed in such forward-looking statements, and such differences
may be material. Forward-looking statements speak only as of the
date they are made and Nicolet does not assume any duty to update
forward-looking statements. There are a number of factors that
could cause our actual results to differ materially from those
projected in such forward-looking statements.
In addition to factors previously disclosed in Nicolet's
reports filed with the SEC and those identified elsewhere in this
news release, these forward-looking statements include, but are not
limited to, statements about (i) Nicolet's expected COVID-19
pandemic response and how its operations and financial condition
may change as a result of the COVID-19 pandemic; (ii) the expected
impact on the broader economy with regard to the effects of the
COVID-19 pandemic and the government's response to the COVID-19
pandemic; and (iii) Nicolet's plans, objectives, expectations and
intentions and other statements contained in this report that are
not historical facts. Other statements identified by words
such as "expects," "anticipates," "intends," "plans," "believes,"
"seeks," "estimates," "targets," "projects" or words of similar
meaning generally are intended to identify forward-looking
statements. These statements are based upon the current beliefs and
expectations of Nicolet's management and are inherently subject to
significant business, economic and competitive risks and
uncertainties, many of which are beyond their control. In addition,
these forward-looking statements are subject to assumptions with
respect to future business strategies and decisions that are
subject to change. Actual results may differ from those indicated
or implied in the forward-looking statements and such differences
may be material.
The COVID-19 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-19 pandemic
may result in changes to statutes, regulations, or regulatory
policies or practices resulting from could affect Nicolet in
substantial and unpredictable ways.
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)
|
|
06/30/2020
|
|
03/31/2020
|
|
12/31/2019
|
|
09/30/2019
|
|
06/30/2019
|
|
6/30/2020
|
|
6/30/2019
|
Results of
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
$
|
36,892
|
|
|
$
|
37,003
|
|
|
$
|
36,192
|
|
|
$
|
34,667
|
|
|
$
|
34,570
|
|
|
$
|
73,895
|
|
|
$
|
67,729
|
|
Interest
expense
|
|
5,395
|
|
|
5,740
|
|
|
5,723
|
|
|
5,477
|
|
|
5,626
|
|
|
11,135
|
|
|
11,310
|
|
Net interest
income
|
|
31,497
|
|
|
31,263
|
|
|
30,469
|
|
|
29,190
|
|
|
28,944
|
|
|
62,760
|
|
|
56,419
|
|
Provision for credit
losses
|
|
3,000
|
|
|
3,000
|
|
|
300
|
|
|
400
|
|
|
300
|
|
|
6,000
|
|
|
500
|
|
Net interest income
after provision for credit losses
|
|
28,497
|
|
|
28,263
|
|
|
30,169
|
|
|
28,790
|
|
|
28,644
|
|
|
56,760
|
|
|
55,919
|
|
Noninterest
income
|
|
17,471
|
|
|
9,585
|
|
|
13,309
|
|
|
12,312
|
|
|
18,560
|
|
|
27,056
|
|
|
27,746
|
|
Noninterest
expense
|
|
27,813
|
|
|
23,854
|
|
|
25,426
|
|
|
22,887
|
|
|
25,727
|
|
|
51,667
|
|
|
48,486
|
|
Income before income
tax expense
|
|
18,155
|
|
|
13,994
|
|
|
18,052
|
|
|
18,215
|
|
|
21,477
|
|
|
32,149
|
|
|
35,179
|
|
Income tax
expense
|
|
4,576
|
|
|
3,321
|
|
|
5,670
|
|
|
4,603
|
|
|
2,833
|
|
|
7,897
|
|
|
6,185
|
|
Net income
|
|
13,579
|
|
|
10,673
|
|
|
12,382
|
|
|
13,612
|
|
|
18,644
|
|
|
24,252
|
|
|
28,994
|
|
Net income
attributable to noncontrolling interest
|
|
101
|
|
|
118
|
|
|
87
|
|
|
82
|
|
|
95
|
|
|
219
|
|
|
178
|
|
Net income
attributable to Nicolet Bankshares, Inc.
|
|
$
|
13,478
|
|
|
$
|
10,555
|
|
|
$
|
12,295
|
|
|
$
|
13,530
|
|
|
$
|
18,549
|
|
|
$
|
24,033
|
|
|
$
|
28,816
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.29
|
|
|
$
|
1.00
|
|
|
$
|
1.22
|
|
|
$
|
1.45
|
|
|
$
|
1.98
|
|
|
$
|
2.30
|
|
|
$
|
3.06
|
|
Diluted
|
|
$
|
1.28
|
|
|
$
|
0.98
|
|
|
$
|
1.18
|
|
|
$
|
1.40
|
|
|
$
|
1.91
|
|
|
$
|
2.25
|
|
|
$
|
2.97
|
|
Common
Shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average
|
|
10,417
|
|
|
10,516
|
|
|
10,061
|
|
|
9,347
|
|
|
9,374
|
|
|
10,467
|
|
|
9,418
|
|
Diluted weighted
average
|
|
10,520
|
|
|
10,801
|
|
|
10,452
|
|
|
9,697
|
|
|
9,692
|
|
|
10,659
|
|
|
9,711
|
|
Outstanding
|
|
10,424
|
|
|
10,408
|
|
|
10,588
|
|
|
9,363
|
|
|
9,327
|
|
|
10,424
|
|
|
9,327
|
|
Noninterest
Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust services fee
income
|
|
$
|
1,510
|
|
|
$
|
1,579
|
|
|
$
|
1,596
|
|
|
$
|
1,594
|
|
|
$
|
1,569
|
|
|
$
|
3,089
|
|
|
$
|
3,037
|
|
Brokerage fee
income
|
|
2,269
|
|
|
2,322
|
|
|
2,190
|
|
|
2,113
|
|
|
2,002
|
|
|
4,591
|
|
|
3,812
|
|
Mortgage income,
net
|
|
9,963
|
|
|
2,327
|
|
|
4,916
|
|
|
3,700
|
|
|
2,059
|
|
|
12,290
|
|
|
3,262
|
|
Service charges on
deposit accounts
|
|
813
|
|
|
1,225
|
|
|
1,237
|
|
|
1,223
|
|
|
1,194
|
|
|
2,038
|
|
|
2,364
|
|
Card interchange
income
|
|
1,637
|
|
|
1,562
|
|
|
1,683
|
|
|
1,735
|
|
|
1,660
|
|
|
3,199
|
|
|
3,080
|
|
BOLI
income
|
|
540
|
|
|
703
|
|
|
535
|
|
|
495
|
|
|
880
|
|
|
1,243
|
|
|
1,339
|
|
Other noninterest
income
|
|
1,487
|
|
|
521
|
|
|
1,285
|
|
|
1,166
|
|
|
1,624
|
|
|
2,008
|
|
|
3,108
|
|
Noninterest income
without net gains
|
|
18,219
|
|
|
10,239
|
|
|
13,442
|
|
|
12,026
|
|
|
10,988
|
|
|
28,458
|
|
|
20,002
|
|
Asset gains (losses),
net
|
|
(748)
|
|
|
(654)
|
|
|
(133)
|
|
|
286
|
|
|
7,572
|
|
|
(1,402)
|
|
|
7,744
|
|
Total noninterest
income
|
|
$
|
17,471
|
|
|
$
|
9,585
|
|
|
$
|
13,309
|
|
|
$
|
12,312
|
|
|
$
|
18,560
|
|
|
$
|
27,056
|
|
|
$
|
27,746
|
|
Noninterest
Expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel
expense
|
|
$
|
14,482
|
|
|
$
|
13,323
|
|
|
$
|
13,628
|
|
|
$
|
12,914
|
|
|
$
|
15,358
|
|
|
$
|
27,805
|
|
|
$
|
27,895
|
|
Occupancy, equipment
and office
|
|
4,361
|
|
|
4,204
|
|
|
3,827
|
|
|
3,454
|
|
|
3,757
|
|
|
8,565
|
|
|
7,507
|
|
Business development
and marketing
|
|
2,514
|
|
|
1,359
|
|
|
1,397
|
|
|
1,428
|
|
|
1,579
|
|
|
3,873
|
|
|
2,860
|
|
Data
processing
|
|
2,399
|
|
|
2,563
|
|
|
2,730
|
|
|
2,515
|
|
|
2,350
|
|
|
4,962
|
|
|
4,705
|
|
Intangibles
amortization
|
|
880
|
|
|
993
|
|
|
936
|
|
|
914
|
|
|
969
|
|
|
1,873
|
|
|
2,022
|
|
Other noninterest
expense
|
|
3,177
|
|
|
1,412
|
|
|
2,908
|
|
|
1,662
|
|
|
1,714
|
|
|
4,589
|
|
|
3,497
|
|
Total noninterest
expense
|
|
$
|
27,813
|
|
|
$
|
23,854
|
|
|
$
|
25,426
|
|
|
$
|
22,887
|
|
|
$
|
25,727
|
|
|
$
|
51,667
|
|
|
$
|
48,486
|
|
Period-End
Balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
2,821,501
|
|
|
$
|
2,607,424
|
|
|
$
|
2,573,751
|
|
|
$
|
2,242,931
|
|
|
$
|
2,203,273
|
|
|
$
|
2,821,501
|
|
|
$
|
2,203,273
|
|
Allowance for credit
losses - loans
|
|
29,130
|
|
|
26,202
|
|
|
13,972
|
|
|
13,620
|
|
|
13,571
|
|
|
29,130
|
|
|
13,571
|
|
Securities available
for sale, at fair value
|
|
510,809
|
|
|
511,860
|
|
|
449,302
|
|
|
419,300
|
|
|
403,989
|
|
|
510,809
|
|
|
403,989
|
|
Goodwill and other
intangibles, net
|
|
164,094
|
|
|
164,974
|
|
|
165,967
|
|
|
121,371
|
|
|
122,285
|
|
|
164,094
|
|
|
122,285
|
|
Total
assets
|
|
4,541,228
|
|
|
3,732,554
|
|
|
3,577,260
|
|
|
3,105,671
|
|
|
3,054,813
|
|
|
4,541,228
|
|
|
3,054,813
|
|
Deposits
|
|
3,537,805
|
|
|
3,023,466
|
|
|
2,954,453
|
|
|
2,584,447
|
|
|
2,536,639
|
|
|
3,537,805
|
|
|
2,536,639
|
|
Stockholders'
equity
|
|
532,033
|
|
|
510,971
|
|
|
516,262
|
|
|
428,014
|
|
|
411,415
|
|
|
532,033
|
|
|
411,415
|
|
Book value per common
share
|
|
51.04
|
|
|
49.09
|
|
|
48.76
|
|
|
45.71
|
|
|
44.11
|
|
|
51.04
|
|
|
44.11
|
|
Tangible book value
per common share (1)
|
|
35.30
|
|
|
33.24
|
|
|
33.08
|
|
|
32.75
|
|
|
31.00
|
|
|
35.30
|
|
|
31.00
|
|
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)
|
|
06/30/2020
|
|
3/31/2020
|
|
12/31/2019
|
|
9/30/2019
|
|
6/30/2019
|
|
6/30/2020
|
|
6/30/2019
|
Average
Balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
2,823,866
|
|
|
$
|
2,584,584
|
|
|
$
|
2,438,908
|
|
|
$
|
2,218,307
|
|
|
$
|
2,189,070
|
|
|
$
|
2,704,225
|
|
|
$
|
2,184,272
|
|
Investment
securities
|
|
489,597
|
|
|
453,820
|
|
|
424,981
|
|
|
399,090
|
|
|
402,934
|
|
|
471,708
|
|
|
406,239
|
|
Interest-earning
assets
|
|
3,917,499
|
|
|
3,167,505
|
|
|
2,974,974
|
|
|
2,763,997
|
|
|
2,702,357
|
|
|
3,542,502
|
|
|
2,718,557
|
|
Total
assets
|
|
4,310,088
|
|
|
3,555,144
|
|
|
3,339,283
|
|
|
3,094,546
|
|
|
3,022,383
|
|
|
3,932,616
|
|
|
3,034,658
|
|
Deposits
|
|
3,403,188
|
|
|
2,920,071
|
|
|
2,756,295
|
|
|
2,563,821
|
|
|
2,514,226
|
|
|
3,161,630
|
|
|
2,535,459
|
|
Interest-bearing
liabilities
|
|
2,741,199
|
|
|
2,218,592
|
|
|
2,023,448
|
|
|
1,895,754
|
|
|
1,892,775
|
|
|
2,479,896
|
|
|
1,919,345
|
|
Goodwill and other
intangibles, net
|
|
164,564
|
|
|
165,532
|
|
|
147,636
|
|
|
121,895
|
|
|
122,841
|
|
|
165,048
|
|
|
123,363
|
|
Stockholders'
equity
|
|
520,177
|
|
|
513,558
|
|
|
478,645
|
|
|
420,864
|
|
|
404,345
|
|
|
516,867
|
|
|
397,723
|
|
Selected Financial
Ratios: (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.26
|
%
|
|
1.19
|
%
|
|
1.46
|
%
|
|
1.73
|
%
|
|
2.46
|
%
|
|
1.23
|
%
|
|
1.91
|
%
|
Return on average
common equity
|
|
10.42
|
|
|
8.27
|
|
|
10.19
|
|
|
12.75
|
|
|
18.40
|
|
|
9.35
|
|
|
14.61
|
|
Return on average
tangible common equity (1)
|
|
15.24
|
|
|
12.20
|
|
|
14.74
|
|
|
17.95
|
|
|
26.43
|
|
|
13.74
|
|
|
21.18
|
|
Average equity to
average assets
|
|
12.07
|
|
|
14.45
|
|
|
14.33
|
|
|
13.60
|
|
|
13.38
|
|
|
13.14
|
|
|
13.11
|
|
Stockholders' equity
to assets
|
|
11.72
|
|
|
13.69
|
|
|
14.43
|
|
|
13.78
|
|
|
13.47
|
|
|
11.72
|
|
|
13.47
|
|
Tangible common
equity to tangible assets (1)
|
|
8.41
|
|
|
9.70
|
|
|
10.27
|
|
|
10.28
|
|
|
9.86
|
|
|
8.41
|
|
|
9.86
|
|
Net interest
margin
|
|
3.21
|
|
|
3.94
|
|
|
4.06
|
|
|
4.19
|
|
|
4.28
|
|
|
3.53
|
|
|
4.16
|
|
Efficiency
ratio
|
|
55.69
|
|
|
57.16
|
|
|
57.57
|
|
|
55.19
|
|
|
64.01
|
|
|
56.36
|
|
|
63.00
|
|
Effective tax
rate
|
|
25.21
|
|
|
23.73
|
|
|
31.41
|
|
|
25.27
|
|
|
13.19
|
|
|
24.56
|
|
|
17.58
|
|
Selected Asset
Quality Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
11,998
|
|
|
$
|
14,769
|
|
|
14,122
|
|
|
$
|
9,238
|
|
|
$
|
7,650
|
|
|
$
|
11,998
|
|
|
$
|
7,650
|
|
Other real estate
owned
|
|
1,000
|
|
|
1,000
|
|
|
1,000
|
|
|
1,325
|
|
|
300
|
|
|
1,000
|
|
|
300
|
|
Nonperforming
assets
|
|
$
|
12,998
|
|
|
$
|
15,769
|
|
|
$
|
15,122
|
|
|
$
|
10,563
|
|
|
$
|
7,950
|
|
|
$
|
12,998
|
|
|
$
|
7,950
|
|
Net loan charge-offs
(recoveries)
|
|
$
|
71
|
|
|
$
|
55
|
|
|
$
|
(52)
|
|
|
$
|
351
|
|
|
$
|
99
|
|
|
$
|
126
|
|
|
$
|
82
|
|
Allowance for credit
losses-loans to loans
|
|
1.03
|
%
|
|
1.00
|
%
|
|
0.54
|
%
|
|
0.61
|
%
|
|
0.62
|
%
|
|
1.03
|
%
|
|
0.62
|
%
|
Net loan charge-offs
to average loans (2)
|
|
0.01
|
|
|
0.01
|
|
|
(0.01)
|
|
|
0.06
|
|
|
0.02
|
|
|
0.01
|
|
|
0.01
|
|
Nonperforming loans
to total loans
|
|
0.43
|
|
|
0.57
|
|
|
0.55
|
|
|
0.41
|
|
|
0.35
|
|
|
0.43
|
|
|
0.35
|
|
Nonperforming assets
to total assets
|
|
0.29
|
|
|
0.42
|
|
|
0.42
|
|
|
0.34
|
|
|
0.26
|
|
|
0.29
|
|
|
0.26
|
|
Selected Other
Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
resolved PCI loans (rounded)
|
|
N/A
|
|
|
N/A
|
|
|
$
|
1,400
|
|
|
$
|
1,800
|
|
|
$
|
1,300
|
|
|
N/A
|
|
$
|
1,500
|
|
Tax-equivalent
adjustment net interest income
|
|
$
|
229
|
|
|
$
|
231
|
|
|
$
|
257
|
|
|
$
|
251
|
|
|
$
|
263
|
|
|
$
|
460
|
|
|
$
|
535
|
|
Tax benefit on
stock-based compensation
|
|
$
|
(24)
|
|
|
$
|
(323)
|
|
|
$
|
(1,275)
|
|
|
$
|
(128)
|
|
|
$
|
(739)
|
|
|
$
|
(347)
|
|
|
$
|
(883)
|
|
Common stock
repurchased (dollars) (3)
|
|
$
|
0
|
|
|
$
|
13,903
|
|
|
$
|
3,383
|
|
|
$
|
576
|
|
|
$
|
9,142
|
|
|
$
|
13,903
|
|
|
$
|
14,742
|
|
Common stock
repurchased (full shares) (3)
|
|
0
|
|
|
206,833
|
|
|
47,728
|
|
|
9,300
|
|
|
151,098
|
|
|
206,833
|
|
|
253,753
|
|
|
|
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.
|
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,
2020
|
|
March 31,
2020
|
|
June 30,
2019
|
|
|
Average
|
|
|
|
Average
|
|
Average
|
|
|
|
Average
|
|
Average
|
|
|
|
Average
|
(In
thousands)
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PPP loans
|
|
$
|
264,705
|
|
|
$
|
1,786
|
|
|
2.67
|
%
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
%
|
Total loans ex
PPP
|
|
2,559,161
|
|
|
32,008
|
|
|
4.96
|
%
|
|
2,584,584
|
|
|
33,808
|
|
|
5.19
|
%
|
|
2,189,070
|
|
|
31,257
|
|
|
5.66
|
%
|
Total loans (1)
(2)
|
|
2,823,866
|
|
|
33,794
|
|
|
4.74
|
%
|
|
2,584,584
|
|
|
33,808
|
|
|
5.19
|
%
|
|
2,189,070
|
|
|
31,257
|
|
|
5.66
|
%
|
Investment securities
(2)
|
|
489,597
|
|
|
2,752
|
|
|
2.25
|
%
|
|
453,820
|
|
|
2,764
|
|
|
2.44
|
%
|
|
402,934
|
|
|
2,778
|
|
|
2.76
|
%
|
Other
interest-earning assets
|
|
604,036
|
|
|
575
|
|
|
0.38
|
%
|
|
129,101
|
|
|
662
|
|
|
2.04
|
%
|
|
110,353
|
|
|
798
|
|
|
2.87
|
%
|
Total interest-earning
assets
|
|
3,917,499
|
|
|
37,121
|
|
|
3.76
|
%
|
|
3,167,505
|
|
|
37,234
|
|
|
4.66
|
%
|
|
2,702,357
|
|
|
34,833
|
|
|
5.11
|
%
|
Other assets,
net
|
|
392,589
|
|
|
|
|
|
|
387,639
|
|
|
|
|
|
|
320,026
|
|
|
|
|
|
Total
assets
|
|
$4,310,088
|
|
|
|
|
|
$3,555,144
|
|
|
|
|
|
$3,022,383
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing core
deposits
|
|
$
|
2,054,574
|
|
|
$
|
3,170
|
|
|
0.62
|
%
|
|
$
|
1,975,145
|
|
|
$
|
4,182
|
|
|
0.85
|
%
|
|
$
|
1,755,258
|
|
|
$
|
4,696
|
|
|
1.07
|
%
|
Brokered
deposits
|
|
342,776
|
|
|
1,285
|
|
|
1.51
|
%
|
|
158,068
|
|
|
775
|
|
|
1.97
|
%
|
|
60,115
|
|
|
34
|
|
|
0.23
|
%
|
Total interest-bearing
deposits
|
|
2,397,350
|
|
|
4,455
|
|
|
0.75
|
%
|
|
2,133,213
|
|
|
4,957
|
|
|
0.93
|
%
|
|
1,815,373
|
|
|
4,730
|
|
|
1.05
|
%
|
PPPLF
|
|
237,153
|
|
|
210
|
|
|
0.35
|
%
|
|
—
|
|
|
—
|
|
|
0.00
|
%
|
|
—
|
|
|
—
|
|
|
0.00
|
%
|
Other
interest-bearing liabilities
|
|
106,696
|
|
|
730
|
|
|
2.71
|
%
|
|
85,379
|
|
|
783
|
|
|
3.64
|
%
|
|
77,402
|
|
|
896
|
|
|
4.59
|
%
|
Total interest-bearing
liabilities
|
|
2,741,199
|
|
|
5,395
|
|
|
0.79
|
%
|
|
2,218,592
|
|
|
5,740
|
|
|
1.04
|
%
|
|
1,892,775
|
|
|
5,626
|
|
|
1.19
|
%
|
Noninterest-bearing
demand deposits
|
|
1,005,838
|
|
|
|
|
|
|
786,858
|
|
|
|
|
|
|
698,853
|
|
|
|
|
|
Other
liabilities
|
|
42,874
|
|
|
|
|
|
|
36,136
|
|
|
|
|
|
|
26,410
|
|
|
|
|
|
Stockholders'
equity
|
|
520,177
|
|
|
|
|
|
|
513,558
|
|
|
|
|
|
|
404,345
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
4,310,088
|
|
|
|
|
|
|
$
|
3,555,144
|
|
|
|
|
|
|
$
|
3,022,383
|
|
|
|
|
|
Net interest income
and rate spread
|
|
|
|
$
|
31,726
|
|
|
2.97
|
%
|
|
|
|
$
|
31,494
|
|
|
3.62
|
%
|
|
|
|
$
|
29,207
|
|
|
3.92
|
%
|
Net interest
margin
|
|
|
|
|
|
3.21
|
%
|
|
|
|
|
|
3.94
|
%
|
|
|
|
|
|
4.28
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the Six
Months Ended
|
|
|
|
|
|
|
|
|
June 30,
2020
|
|
June 30,
2019
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
Average
|
|
Average
|
|
|
|
Average
|
|
|
|
|
|
|
(In
thousands)
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PPP loans
|
|
$
|
132,353
|
|
|
$
|
1,786
|
|
|
2.67
|
%
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
%
|
|
|
|
|
|
|
Total loans ex
PPP
|
|
2,571,872
|
|
|
65,816
|
|
|
5.07
|
%
|
|
2,184,272
|
|
|
61,270
|
|
|
5.59
|
%
|
|
|
|
|
|
|
Total loans (1)
(2)
|
|
2,704,225
|
|
|
67,602
|
|
|
4.95
|
%
|
|
2,184,272
|
|
|
61,270
|
|
|
5.59
|
%
|
|
|
|
|
|
|
Investment securities
(2)
|
|
471,708
|
|
|
5,516
|
|
|
2.34
|
%
|
|
406,239
|
|
|
5,187
|
|
|
2.55
|
%
|
|
|
|
|
|
|
Other
interest-earning assets
|
|
366,569
|
|
|
1,237
|
|
|
0.67
|
%
|
|
128,046
|
|
|
1,807
|
|
|
2.81
|
%
|
|
|
|
|
|
|
Total interest-earning
assets
|
|
3,542,502
|
|
|
74,355
|
|
|
4.16
|
%
|
|
2,718,557
|
|
|
68,264
|
|
|
5.00
|
%
|
|
|
|
|
|
|
Other assets,
net
|
|
390,114
|
|
|
|
|
|
|
316,101
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
3,932,616
|
|
|
|
|
|
|
$
|
3,034,658
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing core
deposits
|
|
$
|
2,014,860
|
|
|
$
|
7,353
|
|
|
0.73
|
%
|
|
$
|
1,772,343
|
|
|
$
|
9,346
|
|
|
1.06
|
%
|
|
|
|
|
|
|
Brokered
deposits
|
|
250,422
|
|
|
2,059
|
|
|
1.65
|
%
|
|
69,634
|
|
|
161
|
|
|
0.47
|
%
|
|
|
|
|
|
|
Total interest-bearing
deposits
|
|
2,265,282
|
|
|
9,412
|
|
|
0.84
|
%
|
|
1,841,977
|
|
|
9,507
|
|
|
1.04
|
%
|
|
|
|
|
|
|
PPPLF
|
|
118,576
|
|
|
210
|
|
|
0.35
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
|
|
|
|
|
Other
interest-bearing liabilities
|
|
96,038
|
|
|
1,513
|
|
|
3.12
|
%
|
|
77,368
|
|
|
1,803
|
|
|
4.64
|
%
|
|
|
|
|
|
|
Total interest-bearing
liabilities
|
|
2,479,896
|
|
|
11,135
|
|
|
0.90
|
%
|
|
1,919,345
|
|
|
11,310
|
|
|
1.19
|
%
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
896,348
|
|
|
|
|
|
|
693,482
|
|
|
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
39,505
|
|
|
|
|
|
|
24,108
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
516,867
|
|
|
|
|
|
|
397,723
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
3,932,616
|
|
|
|
|
|
|
$
|
3,034,658
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
and rate spread
|
|
|
|
$
|
63,220
|
|
|
3.26
|
%
|
|
|
|
$
|
56,954
|
|
|
3.81
|
%
|
|
|
|
|
|
|
Net interest
margin
|
|
|
|
|
|
3.53
|
%
|
|
|
|
|
|
4.16
|
%
|
|
|
|
|
|
|
|
(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.