- Net income $29 million for second quarter 2024, compared to net income of $28 million in prior quarter, and net income of $23 million for second quarter 2023
- Net income of $57 million or adjusted net income (non-GAAP) of $55 million for first half 2024, compared to net income of $14 million or adjusted net income (non-GAAP) of $45 million for first half 2023
- Solid quarter-over-quarter loan growth of $132 million (2%) and growth in core deposits after experiencing seasonal lows in first quarter
- Quarterly cash dividend of $0.28 per common share paid during second quarter, a 12% increase over first quarter
Nicolet Bankshares, Inc. (NYSE: NIC) (“Nicolet”) announced second quarter 2024 net income of $29 million and earnings per diluted common share of $1.92, compared to net income of $28 million and earnings per diluted common share of $1.82 for first quarter 2024, and net income of $23 million and earnings per diluted common share of $1.51 for second quarter 2023. Net income for the six months ended June 30, 2024 was $57 million and earnings per diluted common share of $3.74, compared to net income of $14 million and earnings per diluted common share of $0.91 for the first half of 2023.
Net income reflected certain non-core items and the related tax effect of each, including the first quarter 2023 balance sheet repositioning and third quarter 2023 change in Wisconsin state tax law (as detailed in the Reconciliation of Non-GAAP Financial Measures table below), as well as gains / (losses) on other assets and investments in all periods. For the six months ended June 30, 2024, these non-core items positively impacted earnings per diluted common share $0.13, and negatively impacted earnings per diluted common share $2.07 for the six months ended June 30, 2023.
“Our strong second quarter results are a continuation and improvement of our first quarter results,” said Mike Daniels, Chairman, President, and CEO of Nicolet. “We witnessed growth in our core deposits after experiencing seasonal lows during tax season; loan growth remained strong for our markets; and our core lines of business are each performing well, despite market headwinds.”
Daniels continued, “Our margin continues to improve due to our heavy C&I focus and disciplined deposit pricing. We remain vigilant with credit, see few signs of significant stress in our markets, and unrealized losses are much smaller relative to our balance sheet given the shorter duration of our investment portfolio. Many of the fears the market has about banks, including shrinking margins, tepid loan growth, weakening asset quality due to CRE exposure, and stressed capital levels due to unrealized bond losses, are of limited concern for us at the moment. In short, we remain well positioned to keep producing peer-leading financial metrics for the remainder of the year, which will continue to provide us with strategic optionality going forward.”
Balance Sheet Review
At June 30, 2024, period end assets were $8.6 billion, an increase of $110 million (1%) from March 31, 2024, mostly from solid loan growth. Total loans increased $132 million (2%) from March 31, 2024, with growth in agricultural, commercial and industrial, and residential real estate loans. Total deposits of $7.2 billion at June 30, 2024, increased $75 million from March 31, 2024, mostly noninterest-bearing demand and time deposits. Total capital was $1.1 billion at June 30, 2024, an increase of $28 million over March 31, 2024, with earnings partly offset by the quarterly common stock dividend.
Asset Quality
Nonperforming assets were $29 million and represented 0.34% of total assets at June 30, 2024, minimally changed from $28 million or 0.33% of total assets at March 31, 2024, and $27 million or 0.32% of total assets at June 30, 2023. The allowance for credit losses-loans was $65 million and represented 1.00% of total loans at June 30, 2024, compared to $64 million (or 1.01% of total loans) at March 31, 2024, and $63 million (or 1.01% of total loans) at June 30, 2023. Asset quality trends remain solid and loan net charge-offs were negligible.
Income Statement Review - Quarter
Net income and adjusted net income (non-GAAP) was $29 million for second quarter 2024, compared to net income of $28 million or adjusted net income (non-GAAP) of $26 million for first quarter 2024.
Net interest income was $65 million for second quarter 2024, up $3 million from first quarter 2024. Interest income increased $5 million mostly due to the repricing of new and renewed loans in a rising interest rate environment, as well as solid loan growth, while interest expense increased $2 million mainly due to higher average balances. The net interest margin for second quarter 2024 was 3.35%, up 9 bps from 3.26% for first quarter 2024. The yield on interest-earning assets increased 17 bps (to 5.61%) mostly due to higher average rates from the repricing of the loan portfolio and interest recovered upon the payoff of a nonaccrual loan, while the cost of funds increased 8 bps (to 3.09%) for second quarter 2024, attributable mainly to higher cost brokered deposits.
Noninterest income of $20 million for second quarter 2024 was minimally changed from first quarter 2024. Excluding the net asset gains (losses), noninterest income for second quarter 2024 was $19 million, a $1 million increase from first quarter 2024, mostly due to higher net mortgage income. Net asset gains (losses) of $0.6 million for second quarter 2024 were mostly due to the gain on sale of an other investment, while first quarter 2024 included net gains of $1.9 million due to a $1 million gain on sale of an investment security and a $1 million gain on the early extinguishment of subordinated debt.
Noninterest expense of $47 million for second quarter 2024 was also minimally changed from first quarter 2024. Within personnel expense, lower salaries and payroll taxes were substantially offset by higher incentives, while in non-personnel expenses lower snowplowing and equipment maintenance was offset by higher legal and professional fees.
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 primarily in Wisconsin, Michigan, and Minnesota. 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 adjusted net income, non-GAAP adjusted earnings per diluted common share, tangible book value per common share, return on average tangible common equity, and tangible common equity to tangible assets. Management believes such measures to be helpful to management, investors and others in understanding Nicolet’s results of operations and financial position. When 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 company, 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 Private Securities Litigation Reform Act. Forward-looking statements generally can be identified by words or phrases such as, without limitation, “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, and in this press release include our statements about our ability to produce peer-leading financial metrics and strategic optionality going forward.
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. Risks, uncertainties and other factors that could cause the actual results to differ materially from the statements, include, but are not limited to general competitive, economic, political, regulatory and market conditions. Additional factors which could affect the forward-looking statements contained in this press release can be found under the headings “Forward-Looking Statements” and “Risk Factors” in Nicolet’s 2023 Annual Report on Form 10-K, as well subsequent filings with the SEC and are available on the SEC’s website at www.sec.gov.
Many of these factors are beyond Nicolet’s ability to control or predict. If one or more events related to these or other risks or uncertainties materialize, or if the underlying assumptions prove to be incorrect, actual results may differ materially from the forward-looking statements. Accordingly, shareholders and investors should not place undue reliance on any such forward-looking statements. Any forward-looking statements included in this press release are made as of the date hereof and are based on information available to management at that time. Except as required by law, Nicolet disclaims any obligation to update or revise any forward-looking statement contained in this press release to reflect new information or events or circumstances that occur after the date the forward-looking statements were made. New risks and uncertainties may emerge from time to time, and it is not possible for Nicolet to predict their occurrence or how they will affect Nicolet.
Nicolet qualifies all forward-looking statements by these cautionary statements.
|
Nicolet Bankshares, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Balance Sheets (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except share data)
|
|
6/30/2024
|
|
3/31/2024
|
|
12/31/2023
|
|
9/30/2023
|
|
6/30/2023
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
$
|
109,674
|
|
|
$
|
81,677
|
|
|
$
|
129,898
|
|
|
$
|
109,414
|
|
|
$
|
122,021
|
|
|
Interest-earning deposits
|
|
|
298,856
|
|
|
|
345,747
|
|
|
|
361,533
|
|
|
|
436,466
|
|
|
|
383,185
|
|
|
Cash and cash equivalents
|
|
|
408,530
|
|
|
|
427,424
|
|
|
|
491,431
|
|
|
|
545,880
|
|
|
|
505,206
|
|
|
Certificates of deposit in other banks
|
|
|
3,924
|
|
|
|
5,639
|
|
|
|
6,374
|
|
|
|
7,598
|
|
|
|
9,808
|
|
|
Securities available for sale, at fair value
|
|
|
799,937
|
|
|
|
803,963
|
|
|
|
802,573
|
|
|
|
793,826
|
|
|
|
921,108
|
|
|
Other investments
|
|
|
60,796
|
|
|
|
60,464
|
|
|
|
57,560
|
|
|
|
58,367
|
|
|
|
57,578
|
|
|
Loans held for sale
|
|
|
9,450
|
|
|
|
5,022
|
|
|
|
4,160
|
|
|
|
6,500
|
|
|
|
3,849
|
|
|
Loans
|
|
|
6,529,134
|
|
|
|
6,397,617
|
|
|
|
6,353,942
|
|
|
|
6,239,257
|
|
|
|
6,222,776
|
|
|
Allowance for credit losses - loans
|
|
|
(65,414
|
)
|
|
|
(64,347
|
)
|
|
|
(63,610
|
)
|
|
|
(63,160
|
)
|
|
|
(62,811
|
)
|
|
Loans, net
|
|
|
6,463,720
|
|
|
|
6,333,270
|
|
|
|
6,290,332
|
|
|
|
6,176,097
|
|
|
|
6,159,965
|
|
|
Premises and equipment, net
|
|
|
120,988
|
|
|
|
119,962
|
|
|
|
118,756
|
|
|
|
117,744
|
|
|
|
117,278
|
|
|
Bank owned life insurance (“BOLI”)
|
|
|
171,972
|
|
|
|
170,746
|
|
|
|
169,392
|
|
|
|
168,223
|
|
|
|
167,192
|
|
|
Goodwill and other intangibles, net
|
|
|
391,421
|
|
|
|
393,183
|
|
|
|
394,366
|
|
|
|
396,208
|
|
|
|
398,194
|
|
|
Accrued interest receivable and other assets
|
|
|
126,279
|
|
|
|
126,989
|
|
|
|
133,734
|
|
|
|
145,719
|
|
|
|
142,450
|
|
|
Total assets
|
|
$
|
8,557,017
|
|
|
$
|
8,446,662
|
|
|
$
|
8,468,678
|
|
|
$
|
8,416,162
|
|
|
$
|
8,482,628
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits
|
|
$
|
1,764,806
|
|
|
$
|
1,665,229
|
|
|
$
|
1,958,709
|
|
|
$
|
2,020,074
|
|
|
$
|
2,059,939
|
|
|
Interest-bearing deposits
|
|
|
5,476,272
|
|
|
|
5,500,503
|
|
|
|
5,239,091
|
|
|
|
5,162,314
|
|
|
|
5,138,665
|
|
|
Total deposits
|
|
|
7,241,078
|
|
|
|
7,165,732
|
|
|
|
7,197,800
|
|
|
|
7,182,388
|
|
|
|
7,198,604
|
|
|
Short-term borrowings
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
50,000
|
|
|
Long-term borrowings
|
|
|
162,433
|
|
|
|
162,257
|
|
|
|
166,930
|
|
|
|
197,754
|
|
|
|
197,577
|
|
|
Accrued interest payable and other liabilities
|
|
|
62,093
|
|
|
|
55,018
|
|
|
|
64,941
|
|
|
|
61,559
|
|
|
|
58,809
|
|
|
Total liabilities
|
|
|
7,465,604
|
|
|
|
7,383,007
|
|
|
|
7,429,671
|
|
|
|
7,441,701
|
|
|
|
7,504,990
|
|
|
Stockholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
150
|
|
|
|
149
|
|
|
|
149
|
|
|
|
147
|
|
|
|
147
|
|
|
Additional paid-in capital
|
|
|
639,159
|
|
|
|
636,621
|
|
|
|
633,770
|
|
|
|
626,348
|
|
|
|
624,897
|
|
|
Retained earnings
|
|
|
507,366
|
|
|
|
482,295
|
|
|
|
458,261
|
|
|
|
431,317
|
|
|
|
417,863
|
|
|
Accumulated other comprehensive income (loss)
|
|
|
(55,262
|
)
|
|
|
(55,410
|
)
|
|
|
(53,173
|
)
|
|
|
(83,351
|
)
|
|
|
(65,269
|
)
|
|
Total stockholders' equity
|
|
|
1,091,413
|
|
|
|
1,063,655
|
|
|
|
1,039,007
|
|
|
|
974,461
|
|
|
|
977,638
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
8,557,017
|
|
|
$
|
8,446,662
|
|
|
$
|
8,468,678
|
|
|
$
|
8,416,162
|
|
|
$
|
8,482,628
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding
|
|
|
14,945,598
|
|
|
|
14,930,549
|
|
|
|
14,894,209
|
|
|
|
14,757,565
|
|
|
|
14,717,938
|
|
|
Nicolet Bankshares, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Income (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
|
(In thousands, except per share data)
|
|
6/30/2024
|
|
3/31/2024
|
|
12/31/2023
|
|
9/30/2023
|
|
6/30/2023
|
|
6/30/2024
|
|
6/30/2023
|
|
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including loan fees
|
|
$
|
97,975
|
|
$
|
93,648
|
|
$
|
90,265
|
|
$
|
87,657
|
|
|
$
|
84,091
|
|
|
$
|
191,623
|
|
$
|
163,233
|
|
|
Taxable investment securities
|
|
|
5,056
|
|
|
4,557
|
|
|
4,737
|
|
|
4,351
|
|
|
|
4,133
|
|
|
|
9,613
|
|
|
9,094
|
|
|
Tax-exempt investment securities
|
|
|
1,152
|
|
|
1,238
|
|
|
1,394
|
|
|
1,424
|
|
|
|
1,476
|
|
|
|
2,390
|
|
|
3,213
|
|
|
Other interest income
|
|
|
4,695
|
|
|
4,588
|
|
|
7,149
|
|
|
6,452
|
|
|
|
2,357
|
|
|
|
9,283
|
|
|
3,893
|
|
|
Total interest income
|
|
|
108,878
|
|
|
104,031
|
|
|
103,545
|
|
|
99,884
|
|
|
|
92,057
|
|
|
|
212,909
|
|
|
179,433
|
|
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
41,386
|
|
|
38,990
|
|
|
36,583
|
|
|
34,964
|
|
|
|
29,340
|
|
|
|
80,376
|
|
|
54,277
|
|
|
Short-term borrowings
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
474
|
|
|
|
1,108
|
|
|
|
—
|
|
|
4,320
|
|
|
Long-term borrowings
|
|
|
2,150
|
|
|
2,234
|
|
|
2,680
|
|
|
2,972
|
|
|
|
2,570
|
|
|
|
4,384
|
|
|
5,076
|
|
|
Total interest expense
|
|
|
43,536
|
|
|
41,224
|
|
|
39,263
|
|
|
38,410
|
|
|
|
33,018
|
|
|
|
84,760
|
|
|
63,673
|
|
|
Net interest income
|
|
|
65,342
|
|
|
62,807
|
|
|
64,282
|
|
|
61,474
|
|
|
|
59,039
|
|
|
|
128,149
|
|
|
115,760
|
|
|
Provision for credit losses
|
|
|
1,350
|
|
|
750
|
|
|
1,000
|
|
|
450
|
|
|
|
450
|
|
|
|
2,100
|
|
|
3,540
|
|
|
Net interest income after provision for credit losses
|
|
|
63,992
|
|
|
62,057
|
|
|
63,282
|
|
|
61,024
|
|
|
|
58,589
|
|
|
|
126,049
|
|
|
112,220
|
|
|
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth management fee income
|
|
|
6,674
|
|
|
6,485
|
|
|
6,308
|
|
|
6,057
|
|
|
|
5,870
|
|
|
|
13,159
|
|
|
11,382
|
|
|
Mortgage income, net
|
|
|
2,634
|
|
|
1,364
|
|
|
1,856
|
|
|
2,020
|
|
|
|
1,822
|
|
|
|
3,998
|
|
|
3,288
|
|
|
Service charges on deposit accounts
|
|
|
1,813
|
|
|
1,581
|
|
|
1,475
|
|
|
1,492
|
|
|
|
1,529
|
|
|
|
3,394
|
|
|
3,009
|
|
|
Card interchange income
|
|
|
3,458
|
|
|
3,098
|
|
|
3,306
|
|
|
3,321
|
|
|
|
3,331
|
|
|
|
6,556
|
|
|
6,364
|
|
|
BOLI income
|
|
|
1,225
|
|
|
1,347
|
|
|
1,161
|
|
|
1,090
|
|
|
|
1,073
|
|
|
|
2,572
|
|
|
2,273
|
|
|
Asset gains (losses), net
|
|
|
616
|
|
|
1,909
|
|
|
5,947
|
|
|
31
|
|
|
|
(318
|
)
|
|
|
2,525
|
|
|
(38,786
|
)
|
|
Deferred compensation plan asset market valuations
|
|
|
169
|
|
|
59
|
|
|
949
|
|
|
(457
|
)
|
|
|
499
|
|
|
|
228
|
|
|
1,445
|
|
|
LSR income, net
|
|
|
1,117
|
|
|
1,134
|
|
|
1,027
|
|
|
1,108
|
|
|
|
1,135
|
|
|
|
2,251
|
|
|
2,290
|
|
|
Other noninterest income
|
|
|
1,903
|
|
|
2,445
|
|
|
2,405
|
|
|
1,879
|
|
|
|
1,900
|
|
|
|
4,348
|
|
|
3,732
|
|
|
Total noninterest income
|
|
|
19,609
|
|
|
19,422
|
|
|
24,434
|
|
|
16,541
|
|
|
|
16,841
|
|
|
|
39,031
|
|
|
(5,003
|
)
|
|
Noninterest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel expense
|
|
|
26,285
|
|
|
26,510
|
|
|
26,937
|
|
|
23,944
|
|
|
|
23,900
|
|
|
|
52,795
|
|
|
48,228
|
|
|
Occupancy, equipment and office
|
|
|
8,681
|
|
|
8,944
|
|
|
9,567
|
|
|
9,027
|
|
|
|
8,845
|
|
|
|
17,625
|
|
|
17,628
|
|
|
Business development and marketing
|
|
|
2,040
|
|
|
2,142
|
|
|
1,854
|
|
|
1,869
|
|
|
|
1,946
|
|
|
|
4,182
|
|
|
4,067
|
|
|
Data processing
|
|
|
4,281
|
|
|
4,270
|
|
|
7,043
|
|
|
4,643
|
|
|
|
4,218
|
|
|
|
8,551
|
|
|
8,206
|
|
|
Intangibles amortization
|
|
|
1,762
|
|
|
1,833
|
|
|
1,842
|
|
|
1,986
|
|
|
|
2,083
|
|
|
|
3,595
|
|
|
4,244
|
|
|
FDIC assessments
|
|
|
990
|
|
|
1,033
|
|
|
950
|
|
|
1,500
|
|
|
|
1,009
|
|
|
|
2,023
|
|
|
1,549
|
|
|
Merger-related expense
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
26
|
|
|
|
—
|
|
|
189
|
|
|
Other noninterest expense
|
|
|
2,814
|
|
|
2,415
|
|
|
2,103
|
|
|
2,769
|
|
|
|
2,930
|
|
|
|
5,229
|
|
|
5,721
|
|
|
Total noninterest expense
|
|
|
46,853
|
|
|
47,147
|
|
|
50,296
|
|
|
45,738
|
|
|
|
44,957
|
|
|
|
94,000
|
|
|
89,832
|
|
|
Income before income tax expense
|
|
|
36,748
|
|
|
34,332
|
|
|
37,420
|
|
|
31,827
|
|
|
|
30,473
|
|
|
|
71,080
|
|
|
17,385
|
|
|
Income tax expense
|
|
|
7,475
|
|
|
6,542
|
|
|
6,759
|
|
|
14,669
|
|
|
|
7,878
|
|
|
|
14,017
|
|
|
3,688
|
|
|
Net income
|
|
$
|
29,273
|
|
$
|
27,790
|
|
$
|
30,661
|
|
$
|
17,158
|
|
|
$
|
22,595
|
|
|
$
|
57,063
|
|
$
|
13,697
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.96
|
|
$
|
1.86
|
|
$
|
2.07
|
|
$
|
1.16
|
|
|
$
|
1.54
|
|
|
$
|
3.82
|
|
$
|
0.93
|
|
|
Diluted
|
|
$
|
1.92
|
|
$
|
1.82
|
|
$
|
2.02
|
|
$
|
1.14
|
|
|
$
|
1.51
|
|
|
$
|
3.74
|
|
$
|
0.91
|
|
|
Common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average
|
|
|
14,937
|
|
|
14,907
|
|
|
14,823
|
|
|
14,740
|
|
|
|
14,711
|
|
|
|
14,922
|
|
|
14,703
|
|
|
Diluted weighted average
|
|
|
15,276
|
|
|
15,249
|
|
|
15,142
|
|
|
15,100
|
|
|
|
14,960
|
|
|
|
15,263
|
|
|
15,011
|
|
|
Nicolet Bankshares, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Financial Summary (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
|
(In thousands, except share & per share data)
|
|
6/30/2024
|
|
3/31/2024
|
|
12/31/2023
|
|
9/30/2023
|
|
6/30/2023
|
|
6/30/2024
|
|
6/30/2023
|
|
Selected Average Balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
6,496,732
|
|
|
$
|
6,398,838
|
|
|
$
|
6,263,971
|
|
|
$
|
6,230,336
|
|
|
$
|
6,237,757
|
|
|
$
|
6,447,785
|
|
|
$
|
6,219,868
|
|
|
Investment securities
|
|
|
881,190
|
|
|
|
884,775
|
|
|
|
897,437
|
|
|
|
962,607
|
|
|
|
1,068,144
|
|
|
|
882,982
|
|
|
|
1,287,123
|
|
|
Interest-earning assets
|
|
|
7,733,097
|
|
|
|
7,629,120
|
|
|
|
7,683,495
|
|
|
|
7,676,895
|
|
|
|
7,497,935
|
|
|
|
7,681,109
|
|
|
|
7,663,344
|
|
|
Cash and cash equivalents
|
|
|
374,176
|
|
|
|
364,375
|
|
|
|
558,473
|
|
|
|
513,250
|
|
|
|
203,883
|
|
|
|
369,276
|
|
|
|
166,015
|
|
|
Goodwill and other intangibles, net
|
|
|
392,171
|
|
|
|
393,961
|
|
|
|
395,158
|
|
|
|
397,052
|
|
|
|
399,080
|
|
|
|
393,066
|
|
|
|
400,140
|
|
|
Total assets
|
|
|
8,481,186
|
|
|
|
8,380,595
|
|
|
|
8,415,169
|
|
|
|
8,417,456
|
|
|
|
8,228,600
|
|
|
|
8,430,891
|
|
|
|
8,398,667
|
|
|
Deposits
|
|
|
7,183,777
|
|
|
|
7,112,971
|
|
|
|
7,189,650
|
|
|
|
7,156,577
|
|
|
|
6,941,037
|
|
|
|
7,148,373
|
|
|
|
7,000,320
|
|
|
Interest-bearing liabilities
|
|
|
5,658,642
|
|
|
|
5,509,882
|
|
|
|
5,358,445
|
|
|
|
5,385,292
|
|
|
|
5,212,285
|
|
|
|
5,584,262
|
|
|
|
5,301,202
|
|
|
Stockholders’ equity (common)
|
|
|
1,070,379
|
|
|
|
1,048,596
|
|
|
|
996,745
|
|
|
|
983,133
|
|
|
|
967,142
|
|
|
|
1,059,487
|
|
|
|
968,617
|
|
|
Selected Ratios: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common share
|
|
$
|
73.03
|
|
|
$
|
71.24
|
|
|
$
|
69.76
|
|
|
$
|
66.03
|
|
|
$
|
66.42
|
|
|
$
|
73.03
|
|
|
$
|
66.42
|
|
|
Tangible book value per common share (2)
|
|
$
|
46.84
|
|
|
$
|
44.91
|
|
|
$
|
43.28
|
|
|
$
|
39.18
|
|
|
$
|
39.37
|
|
|
$
|
46.84
|
|
|
$
|
39.37
|
|
|
Return on average assets
|
|
|
1.39
|
%
|
|
|
1.33
|
%
|
|
|
1.45
|
%
|
|
|
0.81
|
%
|
|
|
1.10
|
%
|
|
|
1.36
|
%
|
|
|
0.33
|
%
|
|
Return on average common equity
|
|
|
11.00
|
|
|
|
10.66
|
|
|
|
12.20
|
|
|
|
6.92
|
|
|
|
9.37
|
|
|
|
10.83
|
|
|
|
2.85
|
|
|
Return on average tangible common equity (2)
|
|
|
17.36
|
|
|
|
17.07
|
|
|
|
20.22
|
|
|
|
11.62
|
|
|
|
15.95
|
|
|
|
17.22
|
|
|
|
4.86
|
|
|
Average equity to average assets
|
|
|
12.62
|
|
|
|
12.51
|
|
|
|
11.84
|
|
|
|
11.68
|
|
|
|
11.75
|
|
|
|
12.57
|
|
|
|
11.53
|
|
|
Stockholders’ equity to assets
|
|
|
12.75
|
|
|
|
12.59
|
|
|
|
12.27
|
|
|
|
11.58
|
|
|
|
11.53
|
|
|
|
12.75
|
|
|
|
11.53
|
|
|
Tangible common equity to tangible assets (2)
|
|
|
8.57
|
|
|
|
8.33
|
|
|
|
7.98
|
|
|
|
7.21
|
|
|
|
7.17
|
|
|
|
8.57
|
|
|
|
7.17
|
|
|
Net interest margin
|
|
|
3.35
|
|
|
|
3.26
|
|
|
|
3.30
|
|
|
|
3.16
|
|
|
|
3.14
|
|
|
|
3.31
|
|
|
|
3.02
|
|
|
Efficiency ratio
|
|
|
55.24
|
|
|
|
58.34
|
|
|
|
60.41
|
|
|
|
58.27
|
|
|
|
58.60
|
|
|
|
56.75
|
|
|
|
59.63
|
|
|
Effective tax rate
|
|
|
20.34
|
|
|
|
19.06
|
|
|
|
18.06
|
|
|
|
46.09
|
|
|
|
25.85
|
|
|
|
19.72
|
|
|
|
21.21
|
|
|
Selected Asset Quality Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
|
|
$
|
27,838
|
|
|
$
|
26,677
|
|
|
$
|
26,625
|
|
|
$
|
29,507
|
|
|
$
|
25,278
|
|
|
$
|
27,838
|
|
|
$
|
25,278
|
|
|
Other real estate owned - closed branches
|
|
|
768
|
|
|
|
808
|
|
|
|
808
|
|
|
|
884
|
|
|
|
958
|
|
|
|
768
|
|
|
|
958
|
|
|
Other real estate owned
|
|
|
379
|
|
|
|
437
|
|
|
|
459
|
|
|
|
1,147
|
|
|
|
520
|
|
|
|
379
|
|
|
|
520
|
|
|
Nonperforming assets
|
|
$
|
28,985
|
|
|
$
|
27,922
|
|
|
$
|
27,892
|
|
|
$
|
31,538
|
|
|
$
|
26,756
|
|
|
$
|
28,985
|
|
|
$
|
26,756
|
|
|
Net loan charge-offs (recoveries)
|
|
$
|
283
|
|
|
$
|
13
|
|
|
$
|
550
|
|
|
$
|
101
|
|
|
$
|
51
|
|
|
$
|
296
|
|
|
$
|
218
|
|
|
Allowance for credit losses-loans to loans
|
|
|
1.00
|
%
|
|
|
1.01
|
%
|
|
|
1.00
|
%
|
|
|
1.01
|
%
|
|
|
1.01
|
%
|
|
|
1.00
|
%
|
|
|
1.01
|
%
|
|
Net charge-offs to average loans (1)
|
|
|
0.02
|
|
|
|
0.00
|
|
|
|
0.03
|
|
|
|
0.01
|
|
|
|
0.01
|
|
|
|
0.01
|
|
|
|
0.01
|
|
|
Nonperforming loans to total loans
|
|
|
0.43
|
|
|
|
0.42
|
|
|
|
0.42
|
|
|
|
0.47
|
|
|
|
0.41
|
|
|
|
0.43
|
|
|
|
0.41
|
|
|
Nonperforming assets to total assets
|
|
|
0.34
|
|
|
|
0.33
|
|
|
|
0.33
|
|
|
|
0.37
|
|
|
|
0.32
|
|
|
|
0.34
|
|
|
|
0.32
|
|
|
Stock Repurchase Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock repurchased ($) (3)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,519
|
|
|
$
|
—
|
|
|
$
|
1,519
|
|
|
Common stock repurchased (shares) (3)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
26,853
|
|
|
|
—
|
|
|
|
26,853
|
|
|
(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.
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Loan & Deposit Metrics (Unaudited)
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
6/30/2024
|
|
3/31/2024
|
|
12/31/2023
|
|
9/30/2023
|
|
6/30/2023
|
|
Period End Loan Composition
|
|
|
|
|
|
|
|
|
|
|
|
Commercial & industrial
|
|
$
|
1,358,152
|
|
$
|
1,307,490
|
|
$
|
1,284,009
|
|
$
|
1,237,789
|
|
$
|
1,318,567
|
|
Owner-occupied commercial real estate (“CRE”)
|
|
|
941,137
|
|
|
955,786
|
|
|
956,594
|
|
|
971,397
|
|
|
969,202
|
|
Agricultural
|
|
|
1,224,885
|
|
|
1,190,371
|
|
|
1,161,531
|
|
|
1,108,261
|
|
|
1,068,999
|
|
Commercial
|
|
|
3,524,174
|
|
|
3,453,647
|
|
|
3,402,134
|
|
|
3,317,447
|
|
|
3,356,768
|
|
CRE investment
|
|
|
1,198,020
|
|
|
1,188,722
|
|
|
1,142,251
|
|
|
1,130,938
|
|
|
1,108,692
|
|
Construction & land development
|
|
|
247,565
|
|
|
241,730
|
|
|
310,110
|
|
|
326,747
|
|
|
337,389
|
|
Commercial real estate
|
|
|
1,445,585
|
|
|
1,430,452
|
|
|
1,452,361
|
|
|
1,457,685
|
|
|
1,446,081
|
|
Commercial-based loans
|
|
|
4,969,759
|
|
|
4,884,099
|
|
|
4,854,495
|
|
|
4,775,132
|
|
|
4,802,849
|
|
Residential construction
|
|
|
90,904
|
|
|
84,370
|
|
|
75,726
|
|
|
76,289
|
|
|
108,095
|
|
Residential first mortgage
|
|
|
1,190,790
|
|
|
1,167,069
|
|
|
1,167,109
|
|
|
1,136,748
|
|
|
1,072,609
|
|
Residential junior mortgage
|
|
|
218,512
|
|
|
206,434
|
|
|
200,884
|
|
|
195,432
|
|
|
184,873
|
|
Residential real estate
|
|
|
1,500,206
|
|
|
1,457,873
|
|
|
1,443,719
|
|
|
1,408,469
|
|
|
1,365,577
|
|
Retail & other
|
|
|
59,169
|
|
|
55,645
|
|
|
55,728
|
|
|
55,656
|
|
|
54,350
|
|
Retail-based loans
|
|
|
1,559,375
|
|
|
1,513,518
|
|
|
1,499,447
|
|
|
1,464,125
|
|
|
1,419,927
|
|
Total loans
|
|
$
|
6,529,134
|
|
$
|
6,397,617
|
|
$
|
6,353,942
|
|
$
|
6,239,257
|
|
$
|
6,222,776
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period End Deposit Composition
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand
|
|
$
|
1,764,806
|
|
$
|
1,665,229
|
|
$
|
1,958,709
|
|
$
|
2,020,074
|
|
$
|
2,059,939
|
|
Interest-bearing demand
|
|
|
1,093,621
|
|
|
1,121,030
|
|
|
1,055,520
|
|
|
955,746
|
|
|
1,030,919
|
|
Money market
|
|
|
1,963,559
|
|
|
2,027,559
|
|
|
1,891,287
|
|
|
1,933,227
|
|
|
1,835,523
|
|
Savings
|
|
|
762,529
|
|
|
765,084
|
|
|
768,401
|
|
|
789,045
|
|
|
821,803
|
|
Time
|
|
|
1,656,563
|
|
|
1,586,830
|
|
|
1,523,883
|
|
|
1,484,296
|
|
|
1,450,420
|
|
Total deposits
|
|
$
|
7,241,078
|
|
$
|
7,165,732
|
|
$
|
7,197,800
|
|
$
|
7,182,388
|
|
$
|
7,198,604
|
|
Brokered transaction accounts
|
|
$
|
250,109
|
|
$
|
265,818
|
|
$
|
166,861
|
|
$
|
146,517
|
|
$
|
173,107
|
|
Brokered time deposits
|
|
|
557,657
|
|
|
517,190
|
|
|
448,582
|
|
|
457,433
|
|
|
566,405
|
|
Total brokered deposits
|
|
$
|
807,766
|
|
$
|
783,008
|
|
$
|
615,443
|
|
$
|
603,950
|
|
$
|
739,512
|
|
Customer transaction accounts
|
|
$
|
5,334,406
|
|
$
|
5,313,085
|
|
$
|
5,507,056
|
|
$
|
5,551,575
|
|
$
|
5,575,077
|
|
Customer time deposits
|
|
|
1,098,906
|
|
|
1,069,639
|
|
|
1,075,301
|
|
|
1,026,863
|
|
|
884,015
|
|
Total customer deposits (core)
|
|
$
|
6,433,312
|
|
$
|
6,382,724
|
|
$
|
6,582,357
|
|
$
|
6,578,438
|
|
$
|
6,459,092
|
|
Nicolet Bankshares, Inc.
|
|
Net Interest Income and Net Interest Margin Analysis (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
June 30, 2024
|
|
March 31, 2024
|
|
June 30, 2023
|
|
|
|
Average
|
|
|
|
Average
|
|
Average
|
|
|
|
Average
|
|
Average
|
|
|
|
Average
|
|
(In thousands)
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans (1) (2)
|
|
$
|
6,496,732
|
|
$
|
98,086
|
|
5.99
|
%
|
|
$
|
6,398,838
|
|
$
|
93,744
|
|
|
5.81
|
%
|
|
$
|
6,237,757
|
|
$
|
84,132
|
|
5.35
|
%
|
|
Investment securities (2)
|
|
|
881,190
|
|
|
6,579
|
|
2.99
|
%
|
|
|
884,775
|
|
|
6,197
|
|
|
2.80
|
%
|
|
|
1,068,144
|
|
|
6,094
|
|
2.28
|
%
|
|
Other interest-earning assets
|
|
|
355,175
|
|
|
4,695
|
|
5.24
|
%
|
|
|
345,507
|
|
|
4,588
|
|
|
5.26
|
%
|
|
|
192,034
|
|
|
2,357
|
|
4.87
|
%
|
|
Total interest-earning assets
|
|
|
7,733,097
|
|
$
|
109,360
|
|
5.61
|
%
|
|
|
7,629,120
|
|
$
|
104,529
|
|
|
5.44
|
%
|
|
|
7,497,935
|
|
$
|
92,583
|
|
4.90
|
%
|
|
Other assets, net
|
|
|
748,089
|
|
|
|
|
|
|
751,475
|
|
|
|
|
|
|
730,665
|
|
|
|
|
|
Total assets
|
|
$
|
8,481,186
|
|
|
|
|
|
$
|
8,380,595
|
|
|
|
|
|
$
|
8,228,600
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing core deposits
|
|
$
|
4,665,195
|
|
$
|
31,713
|
|
2.73
|
%
|
|
$
|
4,664,670
|
|
$
|
31,256
|
|
|
2.69
|
%
|
|
$
|
4,278,502
|
|
$
|
22,728
|
|
2.13
|
%
|
|
Brokered deposits
|
|
|
831,100
|
|
|
9,673
|
|
4.68
|
%
|
|
|
680,124
|
|
|
7,734
|
|
|
4.57
|
%
|
|
|
640,643
|
|
|
6,612
|
|
4.14
|
%
|
|
Total interest-bearing deposits
|
|
|
5,496,295
|
|
|
41,386
|
|
3.03
|
%
|
|
|
5,344,794
|
|
|
38,990
|
|
|
2.93
|
%
|
|
|
4,919,145
|
|
|
29,340
|
|
2.39
|
%
|
|
Wholesale funding
|
|
|
162,347
|
|
|
2,150
|
|
5.24
|
%
|
|
|
165,088
|
|
|
2,234
|
|
|
5.35
|
%
|
|
|
293,140
|
|
|
3,678
|
|
4.96
|
%
|
|
Total interest-bearing liabilities
|
|
|
5,658,642
|
|
$
|
43,536
|
|
3.09
|
%
|
|
|
5,509,882
|
|
$
|
41,224
|
|
|
3.01
|
%
|
|
|
5,212,285
|
|
$
|
33,018
|
|
2.54
|
%
|
|
Noninterest-bearing demand deposits
|
|
|
1,687,482
|
|
|
|
|
|
|
1,768,177
|
|
|
|
|
|
|
2,021,892
|
|
|
|
|
|
Other liabilities
|
|
|
64,683
|
|
|
|
|
|
|
53,940
|
|
|
|
|
|
|
27,281
|
|
|
|
|
|
Stockholders' equity
|
|
|
1,070,379
|
|
|
|
|
|
|
1,048,596
|
|
|
|
|
|
|
967,142
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
8,481,186
|
|
|
|
|
|
$
|
8,380,595
|
|
|
|
|
|
$
|
8,228,600
|
|
|
|
|
|
Net interest income and rate spread
|
|
|
|
$
|
65,824
|
|
2.52
|
%
|
|
|
|
$
|
63,305
|
|
|
2.43
|
%
|
|
|
|
$
|
59,565
|
|
2.36
|
%
|
|
Net interest margin
|
|
|
|
|
|
3.35
|
%
|
|
|
|
|
|
3.26
|
%
|
|
|
|
|
|
3.14
|
%
|
|
Loan purchase accounting accretion (3)
|
|
|
|
$
|
1,527
|
|
0.08
|
%
|
|
|
|
$
|
1,527
|
|
|
0.08
|
%
|
|
|
|
$
|
1,636
|
|
0.10
|
%
|
|
Loan nonaccrual interest (4)
|
|
|
|
$
|
329
|
|
0.02
|
%
|
|
|
|
$
|
(241
|
)
|
|
(0.01
|
)%
|
|
|
|
$
|
341
|
|
0.02
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended
|
|
|
|
|
|
|
|
|
|
June 30, 2024
|
|
June 30, 2023
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
Average
|
|
Average
|
|
|
|
Average
|
|
|
|
|
|
|
|
(In thousands)
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans (1) (2)
|
|
$
|
6,447,785
|
|
$
|
191,830
|
|
5.90
|
%
|
|
$
|
6,219,868
|
|
$
|
163,318
|
|
|
5.23
|
%
|
|
|
|
|
|
|
|
Investment securities (2)
|
|
|
882,982
|
|
|
12,776
|
|
2.89
|
%
|
|
|
1,287,123
|
|
|
13,340
|
|
|
2.07
|
%
|
|
|
|
|
|
|
|
Other interest-earning assets
|
|
|
350,342
|
|
|
9,283
|
|
5.25
|
%
|
|
|
156,353
|
|
|
3,893
|
|
|
4.96
|
%
|
|
|
|
|
|
|
|
Total interest-earning assets
|
|
|
7,681,109
|
|
$
|
213,889
|
|
5.52
|
%
|
|
|
7,663,344
|
|
$
|
180,551
|
|
|
4.69
|
%
|
|
|
|
|
|
|
|
Other assets, net
|
|
|
749,782
|
|
|
|
|
|
|
735,323
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
8,430,891
|
|
|
|
|
|
$
|
8,398,667
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing core deposits
|
|
$
|
4,664,932
|
|
$
|
62,969
|
|
2.71
|
%
|
|
$
|
4,301,792
|
|
$
|
42,315
|
|
|
1.98
|
%
|
|
|
|
|
|
|
|
Brokered deposits
|
|
|
755,612
|
|
|
17,407
|
|
4.63
|
%
|
|
|
603,668
|
|
|
11,962
|
|
|
4.00
|
%
|
|
|
|
|
|
|
|
Total interest-bearing deposits
|
|
|
5,420,544
|
|
|
80,376
|
|
2.98
|
%
|
|
|
4,905,460
|
|
|
54,277
|
|
|
2.23
|
%
|
|
|
|
|
|
|
|
Wholesale funding
|
|
|
163,718
|
|
|
4,384
|
|
5.30
|
%
|
|
|
395,742
|
|
|
9,396
|
|
|
4.72
|
%
|
|
|
|
|
|
|
|
Total interest-bearing liabilities
|
|
|
5,584,262
|
|
$
|
84,760
|
|
3.05
|
%
|
|
|
5,301,202
|
|
$
|
63,673
|
|
|
2.42
|
%
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits
|
|
|
1,727,829
|
|
|
|
|
|
|
2,094,860
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
59,313
|
|
|
|
|
|
|
33,988
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
1,059,487
|
|
|
|
|
|
|
968,617
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
8,430,891
|
|
|
|
|
|
$
|
8,398,667
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and rate spread
|
|
|
|
$
|
129,129
|
|
2.47
|
%
|
|
|
|
$
|
116,878
|
|
|
2.27
|
%
|
|
|
|
|
|
|
|
Net interest margin
|
|
|
|
|
|
3.31
|
%
|
|
|
|
|
|
3.02
|
%
|
|
|
|
|
|
|
|
Loan purchase accounting accretion (3)
|
|
|
|
$
|
3,055
|
|
0.08
|
%
|
|
|
|
$
|
3,272
|
|
|
0.10
|
%
|
|
|
|
|
|
|
|
(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.
|
|
(3)
|
|
Loan purchase accounting accretion included in Total loans interest above, and the related impact to net interest margin.
|
|
(4)
|
|
Loan nonaccrual interest included in Total loans interest above, and the related impact to net interest margin.
|
|
Nicolet Bankshares, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures (Unaudited)
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For the Three Months Ended
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For the Six Months Ended
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(In thousands, except per share data)
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6/30/2024
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3/31/2024
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12/31/2023
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9/30/2023
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6/30/2023
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6/30/2024
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6/30/2023
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Adjusted net income reconciliation: (1)
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Net income (GAAP)
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$
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29,273
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$
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27,790
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$
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30,661
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$
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17,158
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$
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22,595
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$
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57,063
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$
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13,697
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Adjustments:
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Provision expense (2)
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—
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—
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—
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—
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—
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—
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2,340
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Assets (gains) losses, net (3)
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(616
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)
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(1,909
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)
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(5,947
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)
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(31
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)
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318
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(2,525
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)
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38,786
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Merger-related expense
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—
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—
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—
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—
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26
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—
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189
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Contract termination charge
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—
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—
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2,689
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—
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—
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—
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—
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Adjustments subtotal
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(616
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)
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(1,909
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)
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(3,258
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)
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(31
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)
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344
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(2,525
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)
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41,315
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Tax on Adjustments (4)
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(120
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)
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(372
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)
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(635
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)
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(6
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)
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86
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(492
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)
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10,329
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Tax - Wisconsin Tax Law Change (4)
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—
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—
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—
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6,151
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—
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—
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—
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Adjusted net income (Non-GAAP)
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$
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28,777
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$
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26,253
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$
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28,038
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$
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23,284
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$
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22,853
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$
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55,030
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$
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44,683
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Diluted earnings per common share:
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Diluted earnings per common share (GAAP)
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$
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1.92
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$
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1.82
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$
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2.02
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$
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1.14
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$
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1.51
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$
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3.74
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$
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0.91
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Adjusted Diluted earnings per common share (Non-GAAP)
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$
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1.88
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$
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1.72
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$
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1.85
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$
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1.54
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$
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1.53
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$
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3.61
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$
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2.98
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Tangible assets: (5)
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Total assets
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$
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8,557,017
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$
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8,446,662
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$
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8,468,678
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$
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8,416,162
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$
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8,482,628
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Goodwill and other intangibles, net
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391,421
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393,183
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394,366
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396,208
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398,194
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Tangible assets
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$
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8,165,596
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$
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8,053,479
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$
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8,074,312
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$
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8,019,954
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$
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8,084,434
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Tangible common equity: (5)
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Stockholders’ equity (common)
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$
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1,091,413
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$
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1,063,655
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$
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1,039,007
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$
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974,461
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$
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977,638
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Goodwill and other intangibles, net
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391,421
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393,183
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394,366
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396,208
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398,194
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Tangible common equity
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$
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699,992
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$
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670,472
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$
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644,641
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$
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578,253
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$
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579,444
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Tangible average common equity: (5)
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Average stockholders’ equity (common)
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$
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1,070,379
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$
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1,048,596
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$
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996,745
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$
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983,133
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$
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967,142
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$
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1,059,487
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$
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968,617
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Average goodwill and other intangibles, net
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392,171
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393,961
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395,158
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397,052
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399,080
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393,066
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400,140
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Average tangible common equity
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$
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678,208
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$
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654,635
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$
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601,587
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$
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586,081
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$
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568,062
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$
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666,421
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$
|
568,477
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Note: Numbers may not sum due to rounding.
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(1)
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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.
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(2)
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Provision expense for 2023 is attributable to the expected loss on a bank subordinated debt investment.
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(3)
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Includes the gains / (losses) on other assets and investments, as well as the impact of the March 2023 balance sheet repositioning which included the sale of $500 million (par value) U.S. Treasury held to maturity securities for a pre-tax loss of $38 million or an after-tax loss of $28 million, with the net proceeds used to reduce FHLB borrowings and the remainder held in investable cash.
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(4)
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In July 2023, a new Wisconsin tax law change was signed which provided financial institutions with an exemption from state taxable income for interest, fees, and penalties earned on specific loans to existing Wisconsin-based business or agriculture purpose loans. The effective tax rate for periods prior to the July 1, 2023, effective date of this tax law change assumed an effective tax rate of 25%, and periods subsequent to the effective date assumed an effective tax rate of 19.5%. The adjusted net income reconciliation for first and second quarter 2023 is as originally reported, and has not been restated to reflect the $3 million excess tax expense of those quarters that was subsequently reversed in third quarter 2023 due to the Wisconsin tax law change. Thus, the adjusted net income reconciliation for the quarters of 2023 will not sum to the full year impact.
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(5)
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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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View source version on businesswire.com: https://www.businesswire.com/news/home/20240716206759/en/