NICOLET BANKSHARES, INC. ANNOUNCES FIRST QUARTER 2022 EARNINGS

Rhea-AI Summary

Nicolet Bankshares (NASDAQ: NCBS) reported a strong first quarter 2022, with net income of $24 million and earnings per diluted share of $1.70, outperforming the prior quarter's $16 million and $1.25. The bank's return on average assets was 1.30%. Notably, it announced an agreement to acquire Charter Bankshares for approximately $38.8 million and agrees to issue 1.26 million shares. Though total assets decreased by 5% to $7.3 billion, loans grew by $61 million. The bank returned $54 million to shareholders via stock repurchases.

Positive

• Net income rose to $24 million, compared to $16 million in the prior quarter.
• Earnings per diluted share increased to $1.70 from $1.25 in the previous quarter.
• Solid loan growth of $61 million, with a 6.8% annualized increase in commercial and agricultural loans.
• Successful stock repurchase program returning $54 million to shareholders.
• Expected merger with Charter Bankshares may enhance market position and product offerings.

Negative

• Total assets decreased by $0.4 billion (5%) to $7.3 billion, reflecting a decline in deposits.
• Net interest margin fell to 3.23%, down from 3.57% in the previous quarter, indicating pressure from low interest rates.
• Noninterest income decreased slightly by 1% compared to the prior quarter, with mortgage income down by $1 million.

• Net income of $24 million, compared to $16 million in prior quarter and $18 million in first quarter 2021
• Earnings per diluted common share of $1.70, compared to $1.25 in prior quarter and $1.75 in first quarter 2021
• Return on average assets of 1.30% for first quarter 2022
• Return on average common equity and return on average tangible common equity of 11.38% and 18.75%, respectively, for first quarter 2022
• Returned capital to shareholders with $54 million in stock repurchases during the quarter
• Agreement to acquire Charter Bankshares, Inc. announced March 30

GREEN BAY, Wis., April 19, 2022 /PRNewswire/ -- Nicolet Bankshares, Inc. (NASDAQ: NCBS) ("Nicolet") announced first quarter 2022 net income of $24 million and earnings per diluted common share of $1.70, compared to $16 million and $1.25 for fourth quarter 2021, and $18 million and $1.75 for first quarter 2021, respectively.  Annualized quarterly return on average assets was 1.30%, 0.96% and 1.64%, for first quarter 2022, fourth quarter 2021 and first quarter 2021, respectively.

On March 29, 2022, we entered into a definitive merger agreement with Charter Bankshares, Inc. ("Charter") pursuant to which Charter will merge with and into Nicolet.  Nicolet expects to issue approximately 1.26 million shares of Nicolet common stock and $38.8 million in cash for the acquisition of Charter.  At December 31, 2021, Charter had total assets of $1.1 billion.  The merger is expected to close in the third quarter of 2022, subject to customary closing conditions, including approval by regulators.

"The first quarter numbers reflect our focus on relationships rather than transactions and all revenue lines working together to serve the customer. We told our team that coming together as one bank was important in our two transactions in 2021, but working together is what will produce the results," said Mike Daniels, President and CEO of Nicolet. "Our loan growth was solid, and our prospects and pipeline look strong.  Asset quality remains outstanding, and our revenue lines in all areas of the bank; commercial, retail, wealth, and agriculture are seeing that a relentless focus on serving our customers and communities continues to create wins."

"I would be remiss if I didn't give all our support areas a quick public thank you.  We have grown 60% in the last six months, and these teams have really stepped up to ensure a smooth transition.  I am constantly impressed with the attitude and effort of these teams.  I am optimistic about another smooth conversion and integration of Charter, and that we will keep our laser focus on running a great community bank," CEO Daniels added.

Executive Chairman of Nicolet Bob Atwell commented, "The market reacted quite favorably to our announced Charter transaction despite the recent retreat in bank stock prices.  Charter's historic performance, overlaid with additional Nicolet products and services, has us excited about this western expansion."  

Evaluation of financial performance and certain balance sheet line items was impacted by the timing and size of Nicolet's 2021 acquisitions, Mackinac Financial Corporation ("Mackinac") on September 3, 2021 and County Bancorp, Inc. ("County") on December 3, 2021. Certain income statement results, average balances and related ratios for 2021 include partial contributions from Mackinac and County, each from the respective acquisition date.  At acquisition, Mackinac added assets of $1.5 billion, loans of $0.9 billion, and deposits of $1.4 billion, while at acquisition County added assets of $1.4 billion, loans of $1.0 billion, and deposits of $1.0 billion.

Balance Sheet Review

At March 31, 2022, period end assets were $7.3 billion, a decrease of $0.4 billion (5%) from December 31, 2021, including $0.2 billion of assets related to the sale of the Birmingham branch in January 2022, as well as lower cash and cash equivalents from the decline in deposits.  Total loans increased $61 million from December 31, 2021, with continued reductions in PPP loans from loan forgiveness (down $16 million) more than offset by growth in the rest of the loan portfolio (up $77 million or 6.8% annualized, primarily in agricultural and commercial and industrial loans).  Total deposits of $6.2 billion at March 31, 2022, decreased $0.2 billion from December 31, 2021, due to the repricing of acquired deposits to current market rates.  Total capital was $836 million at March 31, 2022, a decrease of $56 million since December 31, 2021, mostly due to stock repurchase activity and unfavorable changes in the fair value of available for sale securities, partly offset by current quarter earnings. For the quarter ended March 31, 2022, Nicolet repurchased 593,713 shares of its common stock at a total cost of $54.4 million, or an average per share cost of $91.66.

Asset Quality

Nonperforming assets were $49 million and represented 0.68% of total assets at March 31, 2022, compared to $56 million or 0.73% at December 31, 2021.  The allowance for credit losses-loans was $50 million and represented 1.07% of total loans at March 31, 2022, unchanged from December 31, 2021, given solid asset quality trends which offset the loan growth experienced along with negligible net charge-offs.

Income Statement Review - Quarter

Net income for first quarter 2022 was $24 million, compared to net income of $16 million for fourth quarter 2021.

Net interest income was $54 million for first quarter 2022, up slightly ($0.2 million) from fourth quarter 2021, as the impact of higher average balances was substantially offset by the continued pressure of a low interest rate environment, as well as two fewer days in the quarter.  Average interest-earning assets of $6.7 billion were up $0.8 billion from fourth quarter 2021, largely due to the timing of the County acquisition.  Average loans were up $736 million (including both organic growth and the County acquisition) and average investment securities were up $306 million (reflecting the strategic re-investment of approximately $0.5 billion excess cash liquidity into U.S. Treasury securities of varying yields and durations during fourth quarter, as well as the County acquisition), partly offset by lower balances in other interest-earning assets (down $255 million, mostly cash).  Average interest-bearing liabilities of $4.7 billion increased $678 million from fourth quarter 2021, also largely due to the timing of the County acquisition, with average interest-bearing deposits up $635 million and wholesale funding up $42 million. 

The net interest margin for first quarter 2022 was 3.23%, down 34bps from 3.57% for fourth quarter 2021. The yield on interest-earning assets decreased 37bps (to 3.48%) due to several factors including merger-related interest classification changes, the maturity or paydown of higher rate loans, and competitive pricing pressures on new and renewed loans from the then low interest rate environment.  The cost of funds decreased 5bps (to 0.35%) for first quarter 2022, attributable mainly to the lower cost of deposits.

Noninterest income was $16 million for first quarter 2022, down slightly (1%) compared to fourth quarter 2021.  Excluding net asset gains, noninterest income was $15 million, down $1 million from fourth quarter 2021.  The net asset gains for each quarter were comprised primarily of gains on sales of other real estate owned (mostly closed bank branch locations) and market gains on equity investments.  Net mortgage income of $3 million was down $1 million from fourth quarter 2021 on slowing mortgage activity. Trust services fee income and brokerage fee income combined increased $0.4 million (8%) over fourth quarter 2021.  

Noninterest expense of $38 million decreased $2 million (5%) from fourth quarter 2021. Personnel expense decreased $0.3 million (1%) from fourth quarter 2021, while non-personnel expenses decreased $1.6 million (9%).  The decrease in non-personnel expenses was largely due to $2.1 million lower merger-related expense, partly offset by $0.3 million higher intangible amortization related to the 2021 acquisitions. 

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, agricultural 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.

Use of Non-GAAP Financial Measures

This communication contains non-GAAP financial measures, such as non-GAAP net income, non-GAAP earnings per  diluted common share, tangible book value per common share, return on average tangible common equity, and tangible common equity to tangible assets, where management believes such measures to be helpful to management, investors and others in understanding Nicolet's results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measures, as well as the reconciliation of the non-GAAP measures to the GAAP financial measures, are provided.  See "Reconciliation of Non-GAAP Financial Measures (Unaudited)" below. The non-GAAP net income measure and related reconciliation provide information useful to investors in understanding the operating performance and trends of Nicolet and also aid investors in comparing Nicolet's financial performance to the financial performance of peer banks.  Management considers non-GAAP financial ratios to be critical metrics with which to analyze and evaluate financial condition and capital strengths. While non-GAAP financial measures are frequently used by stakeholders in the evaluation of a corporation, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of results as reported under GAAP.

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 Nicolet's prospects and pipelines looking strong and business focus moving forward, as well as certain plans, expectations, goals, projections and benefits relating to the proposed merger between Nicolet and Charter, 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 proposed merger with Charter, that may cause actual results or outcomes to differ materially from those anticipated include, but are not limited to: (1) the possibility that the proposed merger will not be completed due to the failure to satisfy one or more of the conditions of the merger, including the approvals of regulators or Charter shareholders; (2) the possibility that any of the anticipated benefits of the proposed merger will not be realized or will not be realized within the expected time period; (3) the risk that integration of Charter's operations with those of Nicolet will be materially delayed or will be more costly or difficult than expected; (4) the parties' inability to meet expectations regarding the timing of the proposed merger; (5) changes to tax legislation and their potential effects on the accounting for the proposed merger; (6) diversion of management's attention from ongoing business operations and opportunities due to the proposed merger; (7) the challenges of integrating and retaining key employees; (8) the effect of the announcement of the proposed merger on Nicolet's, Charter's or the combined company's respective customer and employee relationships and operating results; (9) the possibility that the proposed merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (10) dilution caused by Nicolet's issuance of additional shares of Nicolet common stock in connection with the proposed merger; (11) the magnitude and duration of the COVID pandemic and its impact on the global economy and financial market conditions and Nicolet's business, results of operations and financial condition; (12) changes in consumer demand for financial services; (13) general competitive, economic, political and market conditions and fluctuations; and additional risks that are discussed in Nicolet's SEC filings.  Please refer to Nicolet's 2021 Annual Report on Form 10-K, as well as its 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.

 

Nicolet Bankshares, Inc.
Consolidated Balance Sheets (Unaudited)
(In thousands, except share data)		03/31/2022		12/31/2021		09/30/2021		06/30/2021		03/31/2021
Assets
Cash and due from banks		$            183,705		$            209,349		$            217,608		$              77,634		$              61,295
Interest-earning deposits		212,218		385,943		1,132,997		714,772		674,559
Cash and cash equivalents		395,923		595,292		1,350,605		792,406		735,854
Certificates of deposit in other banks		19,692		21,920		24,079		23,387		27,296
Securities available for sale, at fair value		852,331		921,661		715,942		562,028		558,229
Securities held to maturity, at amortized cost		684,991		651,803		49,063		—		—
Other investments		54,257		44,008		38,602		33,440		28,248
Loans held for sale		9,764		6,447		16,784		11,235		16,883
Other assets held for sale		—		199,833		177,627		—		—
Loans		4,683,315		4,621,836		3,533,198		2,820,331		2,846,351
Allowance for credit losses - loans		(49,906)		(49,672)		(38,399)		(32,561)		(32,626)
Loans, net		4,633,409		4,572,164		3,494,799		2,787,770		2,813,725
Premises and equipment, net		94,275		94,566		83,513		61,618		59,413
Bank owned life insurance ("BOLI")		135,292		134,476		100,690		84,347		83,788
Goodwill and other intangibles, net		338,068		339,492		269,954		173,711		174,501
Accrued interest receivable and other assets		102,210		113,375		86,162		57,405		45,867
Total assets		$         7,320,212		$         7,695,037		$         6,407,820		$         4,587,347		$         4,543,804
Liabilities and Stockholders' Equity
Liabilities:
Noninterest-bearing demand deposits		$         1,912,995		$         1,975,705		$         1,852,119		$         1,324,994		$         1,216,477
Interest-bearing deposits		4,318,125		4,490,211		3,576,655		2,614,028		2,684,117
Total deposits		6,231,120		6,465,916		5,428,774		3,939,022		3,900,594
Short-term borrowings		—		—		—		—		—
Long-term borrowings		206,946		216,915		144,233		45,108		43,988
Other liabilities held for sale		—		51,586		47,496		—		—
Accrued interest payable and other liabilities		45,836		68,729		58,039		43,822		49,176
Total liabilities		6,483,902		6,803,146		5,678,542		4,027,952		3,993,758
Stockholders' Equity:
Common stock		135		140		120		98		100
Additional paid-in capital		524,478		575,045		425,367		261,096		271,388
Retained earnings		337,768		313,604		297,299		289,475		271,191
Accumulated other comprehensive income (loss)		(26,071)		3,102		6,492		8,726		7,367
Total Nicolet stockholders' equity		836,310		891,891		729,278		559,395		550,046
Total liabilities and  stockholders' equity		$         7,320,212		$         7,695,037		$         6,407,820		$         4,587,347		$         4,543,804
Common shares outstanding		13,456,741		13,994,079		11,952,438		9,843,141		9,987,897

 

Nicolet Bankshares, Inc.
Consolidated Statements of Income (Unaudited)
		Three Months Ended
(In thousands, except per share data)		03/31/2022		12/31/2021		09/30/2021		06/30/2021		03/31/2021
Interest income:
Loans, including loan fees		$            51,299		$            52,292		$            35,294		$            35,111		$            33,862
Taxable investment securities		5,127		3,999		2,061		2,060		1,814
Tax-exempt investment securities		675		575		517		520		545
Other interest income		817		769		869		616		655
Total interest income		57,918		57,635		38,741		38,307		36,876
Interest expense:
Deposits		2,192		2,649		2,444		2,433		2,922
Short-term borrowings		—		1		—		—		—
Long-term borrowings		1,931		1,426		1,113		303		313
Total interest expense		4,123		4,076		3,557		2,736		3,235
Net interest income		53,795		53,559		35,184		35,571		33,641
Provision for credit losses		300		8,400		6,000		—		500
Net interest income after provision for credit losses		53,495		45,159		29,184		35,571		33,141
Noninterest income:
Trust services fee income		2,011		2,050		2,043		1,906		1,775
Brokerage fee income		3,688		3,205		3,154		2,991		2,793
Mortgage income, net		3,253		4,518		4,808		5,599		7,230
Service charges on deposit accounts		1,477		1,482		1,314		1,136		1,091
Card interchange income		2,581		2,671		2,299		2,266		1,927
BOLI income		933		722		572		559		527
Asset gains (losses), net		1,313		465		(1,187)		4,192		711
Other noninterest income		687		951		993		1,529		1,072
Total noninterest income		15,943		16,064		13,996		20,178		17,126
Noninterest expense:
Personnel expense		21,191		21,491		16,927		17,084		15,116
Occupancy, equipment and office		6,944		7,119		5,749		4,053		4,137
Business development and marketing		1,831		1,550		1,654		1,210		989
Data processing		3,387		3,582		2,939		2,811		2,658
Intangibles amortization		1,424		1,094		758		790		852
FDIC assessments		480		480		480		480		595
Merger-related expense		98		2,202		2,793		656		—
Other noninterest expense		2,195		1,890		1,761		3,663		1,734
Total noninterest expense		37,550		39,408		33,061		30,747		26,081
Income before income tax expense		31,888		21,815		10,119		25,002		24,186
Income tax expense		7,724		5,510		2,295		6,718		5,947
Net income		$            24,164		$            16,305		$              7,824		$            18,284		$            18,239
Earnings per common share:
Basic		$                1.77		$                1.29		$                0.75		$                1.85		$                1.82
Diluted		$                1.70		$                1.25		$                0.73		$                1.77		$                1.75
Common shares outstanding:
Basic weighted average		13,649		12,626		10,392		9,902		9,998
Diluted weighted average		14,215		13,049		10,776		10,326		10,403

 

Nicolet Bankshares, Inc.
Consolidated Financial Summary (Unaudited)
		At or for the Three Months Ended
(In thousands, except share & per share data)		03/31/2022		12/31/2021		9/30/2021		6/30/2021		3/31/2021
Selected Average Balances:
Loans		$     4,688,784		$     3,952,330		$     3,076,422		$     2,869,105		$     2,825,664
Investment securities		1,575,624		1,269,562		611,870		537,632		528,342
Interest-earning assets		6,711,191		5,923,581		4,734,768		4,109,394		4,089,603
Cash and cash equivalents		568,472		839,607		1,100,153		716,873		750,075
Goodwill and other intangibles, net		338,694		294,051		201,748		174,026		174,825
Total assets		7,519,636		6,772,363		5,246,193		4,527,839		4,514,927
Deposits		6,392,544		5,754,778		4,448,468		3,897,797		3,875,205
Interest-bearing liabilities		4,683,915		4,006,307		3,093,031		2,684,871		2,764,232
Stockholders' equity (common)		861,319		784,666		608,946		550,974		544,541
Selected Ratios: (1)
Book value per common share		$           62.15		$           63.73		$           61.01		$           56.83		$           55.07
Tangible book value per common share (2)		$           37.03		$           39.47		$           38.43		$           39.18		$           37.60
Return on average assets		1.30 %		0.96 %		0.59 %		1.62 %		1.64 %
Return on average common equity		11.38		8.24		5.10		13.31		13.58
Return on average tangible common equity (2)		18.75		13.19		7.62		19.46		20.01
Average equity to average assets		11.45		11.59		11.61		12.17		12.06
Stockholders' equity to assets		11.42		11.59		11.38		12.19		12.11
Tangible common equity to tangible assets (2)		7.14		7.51		7.48		8.74		8.60
Net interest margin		3.23		3.57		2.94		3.45		3.31
Efficiency ratio		54.56		56.73		65.32		59.37		51.84
Effective tax rate		24.22		25.26		22.68		26.87		24.59
Selected Asset Quality Information:
Nonaccrual loans		$         39,670		$         44,154		$         16,715		$           6,932		$           8,965
Other real estate owned - closed branches		9,019		10,307		2,895		2,895		3,495
Other real estate owned		797		1,648		1,574		—		302
Nonperforming assets		$         49,486		$         56,109		$         21,184		$           9,827		$         12,762
Net loan charge-offs (recoveries)		$               66		$              (10)		$               58		$               65		$               47
Allowance for credit losses-loans to loans		1.07 %		1.07 %		1.09 %		1.15 %		1.15 %
Net loan charge-offs to average loans (1)		0.01		0.00		0.01		0.01		0.01
Nonperforming loans to total loans		0.85		0.96		0.47		0.25		0.31
Nonperforming assets to total assets		0.68		0.73		0.33		0.21		0.28
Stock Repurchase Information:
Common stock repurchased (dollars) (3)		$         54,420		$         27,784		$         17,125		$         12,453		$           4,102
Common stock repurchased (full shares) (3)		593,713		345,166		233,594		157,418		56,886

(1)	Income statement-related ratios for partial-year periods are annualized.
(2)	See Reconciliation of Non-GAAP Financial Measures below 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)
		Three Months Ended
		March 31, 2022						December 31, 2021						March 31, 2021
		Average				Average		Average				Average		Average				Average
(In thousands)		Balance		Interest		Rate		Balance		Interest		Rate		Balance		Interest		Rate
ASSETS
PPP loans		$      13,503		$     1,377		40.79      %		$      46,694		$     5,549		46.50      %		$    206,498		$     3,951		7.65       %
All other loans		4,675,281		49,957		4.27       %		3,905,636		46,770		4.70       %		2,619,166		29,934		4.57       %
Total loans (1) (2)		4,688,784		51,334		4.38       %		3,952,330		52,319		5.20       %		2,825,664		33,885		4.80       %
Investment securities (2)		1,575,624		6,158		1.57       %		1,269,562		4,860		1.53       %		528,342		2,588		1.96       %
Other interest-earning assets		446,783		817		0.73       %		701,689		769		0.43       %		735,597		655		0.36       %
Total interest-earning assets		6,711,191		$   58,309		3.48       %		5,923,581		$   57,948		3.85       %		4,089,603		$   37,128		3.63       %
Other assets, net		808,445						848,782						425,324
Total assets		$ 7,519,636						$ 6,772,363						$ 4,514,927
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing core deposits		$ 4,009,898		$     1,637		0.17       %		$ 3,456,699		$     1,743		0.20       %		$ 2,395,948		$     1,841		0.31       %
Brokered deposits		459,460		555		0.49       %		377,390		906		0.95       %		316,589		1,081		1.38       %
Total interest-bearing deposits		4,469,358		2,192		0.20       %		3,834,089		2,649		0.27       %		2,712,537		2,922		0.44       %
Other interest-bearing liabilities		214,557		1,931		3.60       %		172,218		1,427		3.30       %		51,695		313		2.42       %
Total interest-bearing liabilities		4,683,915		$     4,123		0.35       %		4,006,307		$     4,076		0.40       %		2,764,232		$     3,235		0.47       %
Noninterest-bearing demand deposits		1,923,186						1,920,689						1,162,668
Other liabilities		51,216						60,701						43,486
Stockholders' equity		861,319						784,666						544,541
Total liabilities and stockholders' equity		$ 7,519,636						$ 6,772,363						$ 4,514,927
Net interest income and rate spread				$   54,186		3.13       %				$   53,872		3.45       %				$   33,893		3.16       %
Net interest margin						3.23       %						3.57       %						3.31       %

(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.

 

Nicolet Bankshares, Inc.
Reconciliation of Non-GAAP Financial Measures (Unaudited)
		At or for the Three Months Ended
(In thousands, except per share data)		03/31/2022		12/31/2021		9/30/2021		6/30/2021		3/31/2021
Adjusted net income reconciliation: (1)
Net income (GAAP)		$            24,164		$            16,305		$              7,824		$            18,284		$            18,239
Adjustments:
Provision expense related to merger		—		8,400		6,000		—		—
Assets (gains) losses, net		(1,313)		(465)		1,187		(4,192)		(711)
Merger-related expense		98		2,202		2,793		656		—
Branch closure expense		—		—		944		—		—
Adjustments subtotal		(1,215)		10,137		10,924		(3,536)		(711)
Tax on Adjustments (25%)		(304)		2,534		2,731		(884)		(178)
Adjustments, net of tax		(911)		7,603		8,193		(2,652)		(533)
Adjusted net income (Non-GAAP)		$            23,253		$            23,908		$            16,017		$            15,632		$            17,706
Common shares outstanding:
Weighted average diluted common shares		14,215		13,049		10,776		10,326		10,403
Diluted earnings per common share:
Diluted earnings per common share (GAAP)		$                1.70		$                1.25		$                0.73		$                1.77		$                1.75
Adjusted Diluted earnings per common share (Non-GAAP)		$                1.64		$                1.83		$                1.49		$                1.51		$                1.70
Tangible assets: (2)
Total assets		$        7,320,212		$        7,695,037		$        6,407,820		$        4,587,347		$        4,543,804
Goodwill and other intangibles, net		338,068		339,492		269,954		173,711		174,501
Tangible assets		$        6,982,144		$        7,355,545		$        6,137,866		$        4,413,636		$        4,369,303
Tangible common equity: (2)
Stockholders' equity		$          836,310		$          891,891		$          729,278		$          559,395		$          550,046
Goodwill and other intangibles, net		338,068		339,492		269,954		173,711		174,501
Tangible common equity		$          498,242		$          552,399		$          459,324		$          385,684		$          375,545
Tangible average common equity: (2)
Average stockholders' equity (common)		$          861,319		$          784,666		$          608,946		$          550,974		$          544,541
Average goodwill and other intangibles, net		338,694		294,051		201,748		174,026		174,825
Average tangible common equity		$          522,625		$          490,615		$          407,198		$          376,948		$          369,716

(1)	The adjusted net income measure and related reconciliation provide information useful to investors in understanding the operating performance and trends of Nicolet and also to aid investors in the comparison of Nicolet's financial performance to the financial performance of peer banks.
(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.

 

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SOURCE Nicolet Bankshares, Inc.

FAQ

What were Nicolet Bankshares' earnings for the first quarter 2022?

Nicolet Bankshares reported net income of $24 million and earnings per diluted share of $1.70 for the first quarter of 2022.

What is the expected impact of the acquisition of Charter Bankshares on NCBS?

The acquisition of Charter Bankshares, expected to close in Q3 2022, is anticipated to enhance Nicolet's market position and product offerings.

How much did Nicolet Bankshares return to shareholders in Q1 2022?

Nicolet Bankshares returned $54 million to shareholders through stock repurchases during the first quarter of 2022.

What was the loan growth rate for Nicolet Bankshares in Q1 2022?

Nicolet Bankshares experienced a loan growth of $61 million, translating to a 6.8% annualized growth rate in the first quarter of 2022.

What challenges did Nicolet Bankshares face in their net interest income for Q1 2022?

Despite net interest income of $54 million, it was impacted by a low interest rate environment and two fewer days in the quarter.