Bulletin
Investor Alert

press release

Oct. 19, 2021, 4:02 p.m. EDT

Nicolet Bankshares, Inc. Announces Third Quarter 2021 Earnings

-- Acquisition of Mackinac Financial Corporation closed and integrated on September 3, adding approximately $1.5 billion in assets-- Net income of $7.8 million, compared to $18.3 million in prior quarter and $18.1 million in third quarter 2020, significantly impacted by the Mackinac acquisition-- Net income of $44.3 million for first nine months of 2021, compared to $42.1 million for first nine months of 2020-- Earnings per diluted common share of $0.73 and $4.22 for the three and nine months ended September 30-- Return on average assets of 0.59% and 1.24% for the three and nine months ended September 30-- Completed the private placement of $100 million of Subordinated Notes on July 7

GREEN BAY, Wis., Oct. 19, 2021 /PRNewswire/ --   Nicolet Bankshares, Inc. /zigman2/quotes/208644317/composite NCBS +1.62% ("Nicolet") announced third quarter 2021 net income of $7.8 million and earnings per diluted common share of $0.73, compared to $18.3 million and $1.77 for second quarter 2021, and $18.1 million and $1.72 for third quarter 2020, respectively.  Annualized quarterly return on average assets was 0.59%, 1.62% and 1.55%, for third quarter 2021, second quarter 2021 and third quarter 2020, respectively.

Net income for the nine months ended September 30, 2021 was $44.3 million and earnings per diluted common share was $4.22, compared to net income of $42.1 million and earnings per diluted common share of $3.97 for the first nine months of 2020.  Annualized return on average assets was 1.24% and 1.35% for the first nine months of 2021 and 2020, respectively.

On September 3, 2021, Nicolet completed its merger with Mackinac Financial Corporation ("Mackinac"), pursuant to the terms of the definitive merger agreement dated April 12, 2021, at which time Mackinac merged with and into Nicolet, expanding Nicolet prominently into Northern Michigan and the Upper Peninsula of Michigan, and adding to Nicolet's presence in upper northeastern Wisconsin.  Mackinac shareholders received fixed consideration of 0.22 shares of Nicolet common stock and $4.64 in cash for each share of Mackinac common stock owned, resulting in the issuance of 2.3 million shares of Nicolet common stock for stock consideration of $180 million and cash consideration of $49 million, or a total purchase price of $229 million.  Upon consummation, Mackinac added total assets of $1.5 billion, loans of $0.9 billion, deposits of $1.4 billion and preliminary goodwill of $92 million. 

"We fully expected this to be a noisy quarter from a financial perspective with the closing of the Mackinac acquisition, and the financial results certainly proved that to be true.  However, we view our acquisitions as long-term investments in the Nicolet franchise, which helps dampen some of the noise. Our integration team delivered another solid performance of combining two banks.  We are especially pleased with the core performance of the bank this quarter.  Our people did a great job of serving our customers without being distracted by the Mackinac integration.  We remain focused on introducing our brand to new communities, introducing our culture to new employees, and operating an outstanding community bank," said Mike Daniels, President and CEO of Nicolet.

"Our organic loan growth is pacing at 7.5% annualized, and continues to stay ahead of our PPP forgiveness activity.  Our credit metrics, including the addition of Mackinac, remain pristine and reflective of our strong credit culture," Daniels said.  "We continue to focus on capital management, and although we were out of the market for about half of the quarter due to our M&A activity and related shareholder meetings, we repurchased $17.1 million or 233,594 of our shares through our repurchase program."

"The merger, while an exciting part of our business model, created some disruption in our reported earnings performance; however, internally we continue to measure and monitor these results to make sure we are remaining true to our commitment to provide superior shareholder return," commented Bob Atwell, Executive Chairman of Nicolet. 

Balance Sheet Review At September 30, 2021, period end assets were $6.4 billion, an increase of $1.8 billion (40%) from June 30, 2021, largely due to the acquisition of Mackinac, which added $1.5 billion of assets at acquisition.  Total loans increased $0.7 billion from June 30, 2021, with Mackinac adding loans of $0.9 billion at acquisition, partly offset by the transfer of $0.2 billion of loans to other assets held for sale in anticipation of the previously announced sale of the Birmingham, Michigan branch.  Total deposits of $5.4 billion at September 30, 2021, increased $1.5 billion (38%) from June 30, 2021, largely due to the acquisition of Mackinac.  Total capital was $729 million at September 30, 2021, an increase of $170 million since June 30, 2021, mostly due to the acquisition of Mackinac. For the quarter ended September 30, 2021, Nicolet repurchased 233,594 shares at a total cost of $17.1 million, or an average per share cost of $73.31.

During 2020, we originated 2,725 PPP loans totaling $351 million, bearing a 1% contractual rate, and earned a $12.3 million fee. During 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 $9.8 million was accreted in the first nine months of 2021.  At September 30, 2021, the net carrying value of all remaining PPP loans was $72 million (2% of total loans), a $78 million decrease from June 30, 2021, with the $28 million added from the Mackinac acquisition more than offset by continued loan forgiveness.      

Asset Quality Nonperforming assets were $21 million at September 30, consisting of $17 million of nonaccrual loans and $4 million of other real estate owned (primarily closed bank branch properties yet to be sold), and representing 0.33% of total assets, compared to $10 million or 0.21% at June 30, 2021, and $12 million or 0.25% at September 30, 2020.  Since the prior quarter, the allowance for credit losses-loans increased $6 million to $38 million, mostly due to the Day 2 allowance increase from the acquisition of Mackinac.  At September 30, 2021, the allowance represented 1.09% of total loans.

Income Statement Review Net income for third quarter 2021 was $7.8 million, compared to net income of $18.3 million for second quarter 2021 and net income of $18.1 million for third quarter 2020.

Net interest income was $35.2 million for third quarter 2021, $0.4 million (1%) lower than $35.6 million for second quarter 2021, comprised of $0.4 million higher interest income more than offset by $0.8 million higher interest expense.  Between the sequential quarters, the lower net interest income included favorable volume variances (up $1.8 million) and one additional earning day (up $0.3 million), offset by unfavorable rate changes (down $2.5 million).   

Average interest-earning assets of $4.7 billion were up $625 million from second quarter 2021, with higher average loans (up $207 million, mostly timing of the Mackinac acquisition) and continued growth in other interest-earning assets ()$344 million, mostly cash), resulting in a shift in the mix of average interest-earning assets to lower yielding assets.  Other interest-earning assets increased to 22% of total interest-earning assets for third quarter 2021 (compared to 17% for second quarter 2021), while the percentage of loans declined to represent 65% of total interest-earning assets for third quarter 2021 (compared to 70% in the prior quarter).  Average interest-bearing liabilities of $3.1 billion increased $408 million from second quarter 2021, with higher average interest-bearing deposits (up $308 million, mostly timing of the Mackinac acquisition) and an increase in other interest-bearing liabilities ()$100 million due to the subordinated notes issuance in July). 

The net interest margin for third quarter 2021 was 2.94%, down 51bps from 3.45% for second quarter 2021. The yield on interest-earning assets decreased 48bps (to 3.24%), mostly due to the change in mix of interest-earnings assets, including a higher proportion of lower yielding cash assets, continued PPP loan forgiveness, and lower yield on all other loans (down 13bps from the prior quarter, pressured by new or renewed loans in the low rate environment).  The cost of funds increased 5bps (to 0.46%) for third quarter 2021, attributable mainly to the $100 million subordinated notes issued in July.

Noninterest income was $14.0 million for third quarter 2021, down $6.2 million (31%) compared to second quarter 2021. Excluding net asset gains (losses), noninterest income was $15.2 million, down $0.8 million (5%) from second quarter 2021.  Net mortgage income of $4.8 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 (6%) over second quarter 2021.  Net asset losses were $1.2 million (comprised primarily of market losses on an equity investment), compared to net asset gains of $4.2 million in second quarter 2021 (comprised primarily of market gains on the same equity investment's initial public offering during the quarter). All remaining noninterest income categories combined decreased $0.3 million from second quarter 2021 largely due to the favorable resolution of an early lease termination in the prior quarter. 

Noninterest expense of $33.1 million increased $2.3 million (8%) from second quarter 2021. Personnel expense decreased $0.2 million (1%) from second quarter 2021, while all non-personnel expenses combined increased $2.5 million (18%) over second quarter 2021.  The increase in non-personnel expenses was largely due to higher merger-related expense, a $0.9 million impairment charge for the previously announced closure of five legacy Nicolet branches, and a larger operating base, partly offset by a $2 million contract termination charge incurred in second quarter. 

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 premier 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 June 30, 2021, County had total assets of $1.5 billion, loans of $1.0 billion, deposits of $1.1 billion and equity of $175 million.  As of September 7, 2021, Nicolet had received all regulatory approvals for the County merger.  On October 5, 2021, the shareholders of both County and Nicolet approved the merger at special meetings of their respective shareholders held on that date. Nicolet expects to close the merger on December 3, 2021, subject to customary closing conditions.

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, Northern Michigan 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 our continuing organic loan growth, as well as certain plans, expectations, goals, projections and benefits relating to the September 2021 merger of Mackinac into Nicolet and 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 with respect to its completed merger with Mackinac and its proposed merger with County, 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 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 inability of Nicolet and/or County to meet expectations regarding the timing of their proposed merger; (4) changes to tax legislation and their potential effects on the accounting for the mergers; (5) the failure of Nicolet and/or County to satisfy any remaining conditions to completion of their proposed merger; (6) the failure of the proposed merger with County to close for any other reason; (7) diversion of management's attention from ongoing business operations and opportunities due to the completed merger with Mackinac and the proposed merger with County; (8) the challenges of integrating and retaining key employees of Nicolet, including those who joined Nicolet from Mackinac, as well as key employees of County; (9) the effect of the announcements and completion of the mergers on Nicolet's, Mackinac's, County's, and/or the combined companies' respective customer and employee relationships and operating results; (10) the possibility that the Mackinac integration, as well as the proposed merger with and integration of County, may be more expensive and time-consuming to complete than anticipated, including as a result of unexpected factors or events; (11) dilution caused by Nicolet's issuance of additional shares of Nicolet common stock in connection with the completed merger with Mackinac and the proposed merger with County; (12) 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, County, and the combined company; (13) changes in consumer demand for financial services; and (14) 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 for Investors This communication relates to the proposed merger transaction involving Nicolet and County. In connection with the proposed merger, Nicolet has filed 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 INVESTMENT DECISION, INVESTORS ARE URGED TO READ THE JOINT PROXY STATEMENT-PROSPECTUS AND ANY OTHER DOCUMENTS FILED OR TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED MERGER OR INCORPORATED BY REFERENCE IN THE JOINT PROXY STATEMENT-PROSPECTUS BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT NICOLET, COUNTY, AND THE PROPOSED MERGER. Investors may obtain copies of the joint proxy statement-prospectus and other relevant documents free of charge at the SEC's website ( www.sec.gov ). Copies of the documents filed with the SEC by Nicolet are available free of charge on Nicolet's website at www.nicoletbank.com . Copies of the documents filed with the SEC by County are available free of charge on County's website at Investors.ICBK.com/documents.

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 Balance Sheets (Unaudited)







At or for the Three Months Ended


09/30/2021
06/30/2021
03/31/2021
12/31/2020
09/30/2020
(In thousands, except share data)









Assets:









Cash and due from banks
$ 217,608

$ 77,634

$ 61,295

$ 88,460

$ 67,922
Interest-earning deposits
1,132,997

714,772

674,559

714,399

785,642
Cash and cash equivalents
1,350,605

792,406

735,854

802,859

853,564
Certificates of deposit in other banks
24,079

23,387

27,296

29,521

32,969
Securities available for sale, at fair value
715,942

562,028

558,229

539,337

535,351
Securities held to maturity, at amortized cost
49,063








Other investments
38,602

33,440

28,248

27,619

26,636
Loans held for sale
16,784

11,235

16,883

21,450

8,384
Other assets held for sale
177,627








Loans
3,533,198

2,820,331

2,846,351

2,789,101

2,908,793
Allowance for credit losses - loans
(38,399)

(32,561)

(32,626)

(32,173)

(31,388)
Loans, net
3,494,799

2,787,770

2,813,725

2,756,928

2,877,405
Premises and equipment, net
83,513

61,618

59,413

59,944

64,184
Bank owned life insurance ("BOLI")
100,690

84,347

83,788

83,262

82,905
Goodwill and other intangibles, net
269,954

173,711

174,501

175,353

176,213
Accrued interest receivable and other assets
86,162

57,405

45,867

55,516

48,764
Total assets
$ 6,407,820

$ 4,587,347

$ 4,543,804

$ 4,551,789

$ 4,706,375











Liabilities and Stockholders' Equity









Liabilities:









Noninterest-bearing demand deposits
$ 1,852,119

$ 1,324,994

$ 1,216,477

$ 1,212,787

$ 1,135,384
Interest-bearing deposits
3,576,655

2,614,028

2,684,117

2,697,612

2,577,424
Total deposits
5,428,774

3,939,022

3,900,594

3,910,399

3,712,808
Short-term borrowings









Long-term borrowings
144,233

45,108

43,988

53,869

405,826
Other liabilities held for sale
47,496








Accrued interest payable and other liabilities
58,039

43,822

49,176

48,332

48,872
Total liabilities
5,678,542

4,027,952

3,993,758

4,012,600

4,167,506
Stockholders' Equity:









Common stock
120

98

100

100

102
Additional paid-in capital
425,367

261,096

271,388

273,390

289,536
Retained earnings
297,299

289,475

271,191

252,952

234,965
Accumulated other comprehensive income (loss)
6,492

8,726

7,367

12,747

13,465
Total Nicolet stockholders' equity
729,278

559,395

550,046

539,189

538,068
Noncontrolling interest








801
Total liabilities, noncontrolling interest, and  stockholders' equity
$ 6,407,820

$ 4,587,347

$ 4,543,804

$ 4,551,789

$ 4,706,375











Common shares outstanding
11,952,438

9,843,141

9,987,897

10,011,342

10,196,228






























Nicolet Bankshares, Inc.













Consolidated Statements of Income (Unaudited)











At or for the Three Months Ended
At or for the Nine Months Ended


09/30/2021
06/30/2021
03/31/2021
12/31/2020
09/30/2020
9/30/2021
9/30/2020
(In thousands, except per share data)













Interest income:













Loans, including loan fees
$ 35,294

$ 35,111

$ 33,862

$ 34,781

$ 34,047

$ 104,267

$ 101,591
Taxable investment securities
2,061

2,060

1,814

2,003

2,001

5,935

6,115
Tax-exempt investment securities
517

520

545

559

542

1,582

1,542
Other interest income
869

616

655

694

680

2,140

1,917
Total interest income
38,741

38,307

36,876

38,037

37,270

113,924

111,165
Interest expense:













Deposits
2,444

2,433

2,922

3,445

3,784

7,799

13,196
Short-term borrowings






1





65
Long-term borrowings
1,113

303

313

573

926

1,729

2,584
Total interest expense
3,557

2,736

3,235

4,019

4,710

9,528

15,845
Net interest income
35,184

35,571

33,641

34,018

32,560

104,396

95,320
Provision for credit losses
6,000



500

1,300

3,000

6,500

9,000
Net interest income after provision for credit losses
29,184

35,571

33,141

32,718

29,560

97,896

86,320
Noninterest income:













Trust services fee income
2,043

1,906

1,775

1,746

1,628

5,724

4,717
Brokerage fee income
3,154

2,991

2,793

2,673

2,489

8,938

7,080
Mortgage income, net
4,808

5,599

7,230

7,842

9,675

17,637

21,965
Service charges on deposit accounts
1,314

1,136

1,091

1,133

1,037

3,541

3,075
Card interchange income
2,299

2,266

1,927

1,922

1,877

6,492

5,076
BOLI income
572

559

527

936

531

1,658

1,774
Asset gains (losses), net
(1,187)

4,192

711

(620)

217

3,716

(1,185)
Other noninterest income
993

1,529

1,072

1,247

1,237

3,594

3,245
Total noninterest income
13,996

20,178

17,126

16,879

18,691

51,300

45,747
Noninterest expense:













Personnel expense
16,927

17,084

15,116

15,244

14,072

49,127

41,877
Occupancy, equipment and office
5,749

4,053

4,137

4,102

4,051

13,939

12,616
Business development and marketing
1,654

1,210

989

713

810

3,853

4,683
Data processing
2,939

2,811

2,658

2,921

2,612

8,408

7,574
Intangibles amortization
758

790

852

860

834

2,400

2,707
FDIC assessments
480

480

595

360

347

1,555

347
Merger-related expense
2,793

656



167

151

3,449

853
Other noninterest expense
1,761

3,663

1,734

1,000

808

7,158

4,695
Total noninterest expense
33,061

30,747

26,081

25,367

23,685

89,889

75,352
Income before income tax expense
10,119

25,002

24,186

24,230

24,566

59,307

56,715
Income tax expense
2,295

6,718

5,947

6,145

6,434

14,960

14,331
Net income
7,824

18,284

18,239

18,085

18,132

44,347

42,384
Net income attributable to noncontrolling interest






98

30



249
Net income attributable to Nicolet
$ 7,824

$ 18,284

$ 18,239

$ 17,987

$ 18,102

$ 44,347

$ 42,135
Earnings per common share:













Basic
$ 0.75

$ 1.85

$ 1.82

$ 1.79

$ 1.75

$ 4.39

$ 4.04
Diluted
$ 0.73

$ 1.77

$ 1.75

$ 1.74

$ 1.72

$ 4.22

$ 3.97
Common shares outstanding:













Basic weighted average
10,392

9,902

9,998

10,074

10,349

10,098

10,426
Diluted weighted average
10,776

10,326

10,403

10,350

10,499

10,503

10,605






























Nicolet Bankshares, Inc.













Consolidated Financial Summary (Unaudited)











At or for the Three Months Ended
At or for the Nine Months Ended


09/30/2021
6/30/2021
3/31/2021
12/31/2020
9/30/2020
9/30/2021
9/30/2020
(In thousands, except share & per share data)













Selected Average Balances:













Loans
$ 3,076,422

$ 2,869,105

$ 2,825,664

$ 2,868,827

$ 2,871,256

$ 2,924,648

$ 2,760,309
Investment securities
611,870

537,632

528,342

520,867

496,153

559,588

479,916
Interest-earning assets
4,734,768

4,109,394

4,089,603

4,091,460

4,216,106

4,313,618

3,768,676
Cash and cash equivalents
1,100,153

716,873

750,075

714,031

864,295

856,983

540,552
Goodwill and other intangibles, net
201,748

174,026

174,825

175,678

169,353

183,632

166,493
Total assets
5,246,193

4,527,839

4,514,927

4,515,226

4,633,359

4,765,665

4,167,902
Deposits
4,448,468

3,897,797

3,875,205

3,793,430

3,636,260

4,075,923

3,320,994
Interest-bearing liabilities
3,093,031

2,684,871

2,764,232

2,744,578

2,933,737

2,848,583

2,632,280
Stockholders' equity (common)
608,946

550,974

544,541

537,920

537,826

568,390

523,904
Selected Ratios: (1)













Book value per common share
$ 61.01

$ 56.83

$ 55.07

$ 53.86

$ 52.77

$ 61.01

$ 52.77
Tangible book value per common share (2)
$ 38.43

$ 39.18

$ 37.60

$ 36.34

$ 35.49

$ 38.43

$ 35.49
Return on average assets
0.59 %
1.62 %
1.64 %
1.58 %
1.55 %
1.24 %
1.35 %
Return on average common equity
5.10

13.31

13.58

13.30

13.39

10.43

10.74
Return on average tangible common equity (2)
7.62

19.46

20.01

19.75

19.54

15.41

15.75
Average equity to average assets
11.61

12.17

12.06

11.91

11.61

11.93

12.57
Stockholders' equity to assets
11.38

12.19

12.11

11.85

11.43

11.38

11.43
Tangible common equity to tangible assets (2)
7.48

8.74

8.60

8.31

7.99

7.48

7.99
Net interest margin
2.94

3.45

3.31

3.29

3.06

3.22

3.35
Efficiency ratio
65.32

59.37

51.84

48.99

46.18

58.86

52.71
Effective tax rate
22.68

26.87

24.59

25.36

26.19

25.22

25.27
Selected Asset Quality Information:













Nonaccrual loans
$ 16,715

$ 6,932

$ 8,965

$ 9,455

$ 10,997

$ 16,715

$ 10,997
Other real estate owned
4,469

2,895

3,797

3,608

1,000

4,469

1,000
Nonperforming assets
$ 21,184

$ 9,827

$ 12,762

$ 13,063

$ 11,997

$ 21,184

$ 11,997
Net loan charge-offs (recoveries)
$ 58

$ 65

$ 47

$ 515

$ 743

$ 170

$ 869
Allowance for credit losses-loans to loans
1.09 %
1.15 %
1.15 %
1.15 %
1.08 %
1.09 %
1.08 %
Net loan charge-offs to average loans (1)
0.01

0.01

0.01

0.07

0.10

0.01

0.04
Nonperforming loans to total loans
0.47

0.25

0.31

0.34

0.38

0.47

0.38
Nonperforming assets to total assets
0.33

0.21

0.28

0.29

0.25

0.33

0.25
Stock Repurchase Information:













Common stock repurchased (dollars) (3)
$ 17,125

$ 12,453

$ 4,102

$ 12,909

$ 13,732

$ 33,680

$ 27,635
Common stock repurchased (full shares) (3)
233,594

157,418

56,886

205,001

234.914

447,898

441,747
Non-GAAP Financial Measures: (2)













Total assets
$ 6,407,820

$ 4,587,347

$ 4,543,804

$ 4,551,789

$ 4,706,375




Goodwill and other intangibles, net
269,954

173,711

174,501

175,353

176,213




Tangible assets
$ 6,137,866

$ 4,413,636

$ 4,369,303

$ 4,376,436

$ 4,530,162




Stockholders' equity
$ 729,278

$ 559,395

$ 550,046

$ 539,189

$ 538,068




Goodwill and other intangibles, net
269,954

173,711

174,501

175,353

176,213




Tangible common equity
$ 459,324

$ 385,684

$ 375,545

$ 363,836

$ 361,855




Average stockholders' equity (common)
$ 608,946

$ 550,974

$ 544,541

$ 537,920

$ 537,826

$ 568,390

$ 523,904
Average goodwill and other intangibles, net
201,748

174,026

174,825

175,678

169,353

183,632

166,493
Average tangible common equity
$ 407,198

$ 376,948

$ 369,716

$ 362,242

$ 368,473

$ 384,758

$ 357,411


1 Income statement-related ratios for partial-year periods are annualized.
2 The ratios of tangible book value per common share, return on average tangible common equity, and tangible common equity to tangible assets exclude goodwill and other intangibles, net.  These financial ratios have been included as they are considered to be critical metrics with which to analyze and evaluate financial condition and capital strength. See section Non-GAAP Financial Measures for a reconciliation of these financial measures.
3 Reflects common stock repurchased under board of director authorizations for the common stock repurchase program.

 

Nicolet Bankshares, Inc.










Net Interest Income and Net Interest Margin Analysis (Unaudited)
































At or for the Three Months Ended


September 30, 2021
June 30, 2021
September 30, 2020


Average


Average
Average


Average
Average


Average


Balance
Interest
Rate
Balance
Interest
Rate
Balance
Interest
Rate
(In thousands)


















ASSETS


















PPP loans
$ 109,318

$ 2,310

8.27 %
$ 205,639

$ 4,862

9.35 %
$ 332,816

$ 2,477

2.91 %
Total loans ex PPP
2,967,104

33,001

4.37 %
2,663,466

30,267

4.50 %
2,538,440

31,598

4.89 %
Total loans (1) (2)
3,076,422

35,311

4.51 %
2,869,105

35,129

4.85 %
2,871,256

34,075

4.66 %
Investment securities (2)
611,870

2,805

1.83 %
537,632

2,794

2.08 %
496,153

2,764

2.23 %
Other interest-earning assets
1,046,476

869

0.33 %
702,657

616

0.35 %
848,697

680

0.32 %
Total interest-earning assets
4,734,768

$ 38,985

3.24 %
4,109,394

$ 38,539

3.72 %
4,216,106

$ 37,519

3.50 %
Other assets, net
511,425





418,445





417,253





Total assets
$ 5,246,193





$ 4,527,839





$ 4,633,359





LIABILITIES AND STOCKHOLDERS' EQUITY












Interest-bearing core deposits
$ 2,665,252

$ 1,550

0.23 %
$ 2,387,730

$ 1,523

0.26 %
$ 2,180,575

$ 2,541

0.46 %
Brokered deposits
284,164

894

1.25 %
253,816

910

1.44 %
336,026

1,243

1.47 %
Total interest-bearing deposits
2,949,416

2,444

0.33 %
2,641,546

2,433

0.37 %
2,516,601

3,784

0.60 %
PPPLF




0.00 %




0.00 %
335,865

297

0.35 %
Other interest-bearing liabilities
143,615

1,113

3.08 %
43,325

303

2.76 %
81,271

629

3.05 %
Total interest-bearing liabilities
3,093,031

$ 3,557

0.46 %
2,684,871

$ 2,736

0.41 %
2,933,737

$ 4,710

0.64 %
Noninterest-bearing demand deposits
1,499,052





1,256,251





1,119,659





Other liabilities
45,164





35,743





42,137





Stockholders' equity
608,946





550,974





537,826





Total liabilities and stockholders' equity
$ 5,246,193





$ 4,527,839





$ 4,633,359





Net interest income and rate spread


$ 35,428

2.78 %


$ 35,803

3.31 %


$ 32,809

2.86 %
Net interest margin




2.94 %




3.45 %




3.06 %






















At or for the Nine Months Ended








September 30, 2021
September 30, 2020








Average


Average
Average


Average








Balance
Interest
Rate
Balance
Interest
Rate






(In thousands)


















ASSETS


















PPP loans
$ 173,463

$ 11,123

8.46 %
$ 199,662

$ 4,263

2.80 %






Total loans ex PPP
2,751,185

93,202

4.48 %
2,560,647

97,414

5.01 %






Total loans (1) (2)
2,924,648

104,325

4.71 %
2,760,309

101,677

4.85 %






Investment securities (2)
559,588

8,187

1.95 %
479,916

8,280

2.30 %






Other interest-earning assets
829,382

2,140

0.34 %
528,451

1,917

0.48 %






Total interest-earning assets
4,313,618

$ 114,652

3.51 %
3,768,676

$ 111,874

3.91 %






Other assets, net
452,047





399,226











Total assets
$ 4,765,665





$ 4,167,902











LIABILITIES AND STOCKHOLDERS' EQUITY












Interest-bearing core deposits
$ 2,483,963

$ 4,914

0.26 %
$ 2,070,500

$ 9,894

0.64 %






Brokered deposits
284,738

2,885

1.35 %
279,165

3,302

1.58 %






Total interest-bearing deposits
2,768,701

7,799

0.38 %
2,349,665

13,196

0.75 %






PPPLF




0.00 %
191,535

507

0.35 %






Other interest-bearing liabilities
79,882

1,729

2.87 %
91,080

2,142

3.10 %






Total interest-bearing liabilities
2,848,583

$ 9,528

0.45 %
2,632,280

$ 15,845

0.80 %






Noninterest-bearing demand deposits
1,307,222





971,329











Other liabilities
41,470





40,389











Stockholders' equity
568,390





523,904











Total liabilities and stockholders' equity
$ 4,765,665





$ 4,167,902











Net interest income and rate spread


$ 105,124

3.06 %


$ 96,029

3.11 %






Net interest margin




3.22 %




3.35 %








(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.

 

 

Cision
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SOURCE Nicolet Bankshares, Inc.

COMTEX_395513466/2454/2021-10-19T16:02:17

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