GREEN BAY, Wis., April 16,
2019 /PRNewswire/ -- Nicolet Bankshares, Inc. (NASDAQ: NCBS)
("Nicolet") announced first quarter 2019 net income of $10.3 million and earnings per diluted common
share of $1.05, compared to
$10.9 million and $1.11 for fourth quarter 2018, and $9.6 million and $0.94 for first quarter 2018, respectively.
Annualized quarterly return on average assets was 1.37%, 1.44% and
1.34%, for first quarter 2019, fourth quarter 2018 and first
quarter 2018, respectively.
"We continued to post top tier results in the first quarter,"
said Bob Atwell, Chairman and CEO of
Nicolet. "There remains room for further improvement, but we
will maintain our focus on the long term vision that has been the
engine of our remarkable shareholder results."
"Our performance was recently recognized by S&P Global,"
said Mike Daniels, President and CEO
of Nicolet National Bank. "Nicolet
was ranked in the top 20 of best-performing banks of 2018 out of
all banks with $3-10 billion in
assets. While we are proud of such a ranking," Daniels said, "we
are still working to get better."
At March 31, 2019, assets were
$3.0 billion and deposits were
$2.5 billion, each down $0.2 billion compared to a year ago, with
March 31, 2018 assets and deposits
carrying a $0.3 billion short-term
transaction deposit of a long-standing commercial customer.
Assets and deposits were both down slightly from December 31, 2018, reflecting a usual cyclical
decline. Loans were $2.2
billion at March 31, 2019,
$89 million or 4% higher than a year
ago and $24 million or 4% annualized
over year-end 2018.
Quarterly average loans continued on a rising trend, up
$65 million or 3% over first quarter
2018 and $37 million or 7% annualized
over fourth quarter 2018, while quarterly average deposits funded
the growth, increasing $121 million
or 5% over the comparable quarter and $39
million or 6% annualized over the linked quarter.
Net income was $10.3 million for
the three months ended March 31,
2019, up $0.7 million or 7%
higher than the first quarter of 2018.
Net interest income increased $0.6
million or 2%, despite $1.6
million lower aggregate discount income, predominantly
attributable to a favorably resolved impaired commercial credit in
first quarter 2018. Net interest income and margin improvements,
excluding the aggregate discount income between the first quarter
periods, benefited from higher average earning assets, improving
yields from new and repricing assets in the rising rate
environment, and pricing discipline on deposits. Noninterest
income increased $0.4 million (4%),
provision for loan losses declined $0.3
million on stronger asset quality, and noninterest expense
increased $0.1 million (under 1%)
between the first quarter periods.
Net income for first quarter 2019 was down $0.6 million or 5% compared to fourth quarter
2018, largely due to the first quarter having fewer earning days,
as well as slower mortgage business and higher expenses that reset
in the new year.
Compared to fourth quarter 2018, net interest income increased
$0.4 million (2%), with fewer earning
days reducing net interest income $0.4
million, though more than offset by favorable volumes and
rates, as well as $0.2 million higher
aggregate discount income between the linked quarters.
Noninterest income was down $0.6
million or 6% from fourth quarter, led by seasonally lower
mortgage volumes. Noninterest expense increased $1.1 million or 5%, due principally to a
$1.2 million (or 11%) increase in
personnel expense, slightly offset by a $0.1
million decrease in all other noninterest expenses combined
(which included fraud contingency expenses of $0.3 million in first quarter 2019 and
$0.5 million in fourth quarter
2018). The linked quarter increase in personnel expense was
mostly due to salary merit increases of $0.2
million (3%), a $0.6 million
increase in cash and equity incentives expense (largely resets,
compared to adjustments in fourth quarter that lowered incentive
amounts), and a $0.4 million increase
in 401(k) expense. Income tax expense decreased $0.7 million between the linked quarters, on
lower pre-tax income and a lower effective tax rate.
Asset quality remains exceptional. The allowance for loan losses
remained at 0.61% of total loans at March
31, 2019. The provision for loan losses was
$0.2 million for first quarter 2019
(with negligible net recoveries), compared to $0.2 million (covering $0.1 million net charge-offs) and $0.5 million (covering $0.4 million net charge-offs) for the fourth and
first quarters of 2018, respectively. Nonperforming assets
were $9 million, representing 0.30%
of total assets at March 31,
2019.
Total capital was $399 million at
March 31, 2019, an increase of
$12 million or 3% since December 31, 2018, with first quarter earnings
and net fair value investment changes partly offset by stock
repurchases. During first quarter 2019, we utilized
$5.6 million to repurchase and cancel
approximately 102,700 shares of our common stock pursuant to our
common stock repurchase program, compared to full year 2018
repurchase activity of approximately 408,100 common shares for
$22.2 million. On February 19, 2019, our board authorized an
increase to the program of $12
million. As a result, at March
31, 2019, there remained $14.1
million authorized under the repurchase program, as
modified, to be utilized from time-to-time to repurchase shares in
the open market, through block transactions or in private
transactions.
About Nicolet Bankshares, Inc.
Nicolet Bankshares, Inc. is the bank holding company of
Nicolet National Bank, a growing,
full-service, community bank providing services ranging from
commercial and consumer banking to wealth management and retirement
plan services. Founded in Green
Bay in 2000, Nicolet National
Bank operates branches in Northeast and Central Wisconsin and the upper peninsula of
Michigan. More information can be found at
www.nicoletbank.com.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of the federal securities law. Statements in this
release that are not strictly historical are forward-looking and
based upon current expectations that may differ materially from
actual results. These forward-looking statements, identified
by words such as "will", "expect", "believe" and "prospects",
involve risks and uncertainties that could cause actual results to
differ materially from those anticipated by the statement made
herein. These risks and uncertainties include, but are not
limited to, general economic trends and changes in interest rates,
increased competition, regulatory or legislative developments
affecting the financial industry generally or Nicolet specifically,
the interpretation of tax legislation, changes in consumer demand
for financial services, the possibility of unforeseen events
affecting the industry generally or Nicolet specifically, the
uncertainties associated with newly developed or acquired
operations and market disruptions. Nicolet undertakes no
obligation to release revisions to these forward-looking statements
publicly to reflect events or circumstances after the date hereof
or to reflect the occurrence of unforeseen events, except as
required to be reported under the rules and regulations of the
Securities and Exchange Commission.
Nicolet
Bankshares, Inc.
|
|
|
|
|
|
Consolidated
Financial Summary (Unaudited)
|
|
|
|
|
|
|
|
At or for the
Three Months Ended
|
(In thousands, except
per share data)
|
|
3/31/2019
|
|
12/31/2018
|
|
9/30/2018
|
|
6/30/2018
|
|
3/31/2018
|
Results of
operations:
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
$
|
33,159
|
|
|
$
|
32,327
|
|
|
$
|
31,880
|
|
|
$
|
30,545
|
|
|
$
|
30,785
|
|
Interest
expense
|
|
5,684
|
|
|
5,298
|
|
|
4,938
|
|
|
4,742
|
|
|
3,911
|
|
Net interest
income
|
|
27,475
|
|
|
27,029
|
|
|
26,942
|
|
|
25,803
|
|
|
26,874
|
|
Provision for loan
losses
|
|
200
|
|
|
240
|
|
|
340
|
|
|
510
|
|
|
510
|
|
Net interest income
after provision for loan losses
|
|
27,275
|
|
|
26,789
|
|
|
26,602
|
|
|
25,293
|
|
|
26,364
|
|
Noninterest
income
|
|
9,186
|
|
|
9,797
|
|
|
10,649
|
|
|
10,239
|
|
|
8,824
|
|
Noninterest
expense
|
|
22,759
|
|
|
21,621
|
|
|
23,044
|
|
|
22,451
|
|
|
22,642
|
|
Income before income
tax expense
|
|
13,702
|
|
|
14,965
|
|
|
14,207
|
|
|
13,081
|
|
|
12,546
|
|
Income tax
expense
|
|
3,352
|
|
|
4,015
|
|
|
3,268
|
|
|
3,255
|
|
|
2,908
|
|
Net income
|
|
10,350
|
|
|
10,950
|
|
|
10,939
|
|
|
9,826
|
|
|
9,638
|
|
Net income
attributable to noncontrolling interest
|
|
83
|
|
|
87
|
|
|
80
|
|
|
89
|
|
|
61
|
|
Net income
attributable to Nicolet Bankshares, Inc.
|
|
$
|
10,267
|
|
|
$
|
10,863
|
|
|
$
|
10,859
|
|
|
$
|
9,737
|
|
|
$
|
9,577
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.09
|
|
|
$
|
1.14
|
|
|
$
|
1.13
|
|
|
$
|
1.01
|
|
|
$
|
0.98
|
|
Diluted
|
|
$
|
1.05
|
|
|
$
|
1.11
|
|
|
$
|
1.09
|
|
|
$
|
0.98
|
|
|
$
|
0.94
|
|
Common
Shares:
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average
|
|
9,461
|
|
|
9,526
|
|
|
9,633
|
|
|
9,639
|
|
|
9,765
|
|
Diluted weighted
average
|
|
9,758
|
|
|
9,814
|
|
|
9,949
|
|
|
9,970
|
|
|
10,225
|
|
Outstanding
|
|
9,431
|
|
|
9,495
|
|
|
9,577
|
|
|
9,643
|
|
|
9,699
|
|
Noninterest
Income:
|
|
|
|
|
|
|
|
|
|
|
Trust services fee
income
|
|
$
|
1,468
|
|
|
$
|
1,583
|
|
|
$
|
1,638
|
|
|
$
|
1,671
|
|
|
$
|
1,606
|
|
Brokerage fee
income
|
|
1,810
|
|
|
1,968
|
|
|
1,732
|
|
|
1,738
|
|
|
1,604
|
|
Mortgage income,
net
|
|
1,203
|
|
|
1,834
|
|
|
1,902
|
|
|
1,528
|
|
|
1,080
|
|
Service charges on
deposit accounts
|
|
1,170
|
|
|
1,208
|
|
|
1,247
|
|
|
1,200
|
|
|
1,190
|
|
Card interchange
income
|
|
1,420
|
|
|
1,583
|
|
|
1,481
|
|
|
1,358
|
|
|
1,243
|
|
Other noninterest
income
|
|
1,943
|
|
|
1,774
|
|
|
2,503
|
|
|
1,772
|
|
|
1,897
|
|
Noninterest income
without net gains
|
|
9,014
|
|
|
9,950
|
|
|
10,503
|
|
|
9,267
|
|
|
8,620
|
|
Asset gains (losses),
net
|
|
172
|
|
|
(153)
|
|
|
146
|
|
|
972
|
|
|
204
|
|
Total noninterest
income
|
|
$
|
9,186
|
|
|
$
|
9,797
|
|
|
$
|
10,649
|
|
|
$
|
10,239
|
|
|
$
|
8,824
|
|
Noninterest
Expense:
|
|
|
|
|
|
|
|
|
|
|
Personnel
expense
|
|
$
|
12,537
|
|
|
$
|
11,327
|
|
|
$
|
12,983
|
|
|
$
|
12,674
|
|
|
$
|
12,492
|
|
Occupancy, equipment
and office
|
|
3,750
|
|
|
3,673
|
|
|
3,660
|
|
|
3,454
|
|
|
3,787
|
|
Business development
and marketing
|
|
1,281
|
|
|
1,185
|
|
|
1,334
|
|
|
1,463
|
|
|
1,342
|
|
Data
processing
|
|
2,355
|
|
|
2,420
|
|
|
2,375
|
|
|
2,399
|
|
|
2,320
|
|
Intangibles
amortization
|
|
1,053
|
|
|
1,053
|
|
|
1,054
|
|
|
1,100
|
|
|
1,182
|
|
Other noninterest
expense
|
|
1,783
|
|
|
1,963
|
|
|
1,638
|
|
|
1,361
|
|
|
1,519
|
|
Total noninterest
expense
|
|
$
|
22,759
|
|
|
$
|
21,621
|
|
|
$
|
23,044
|
|
|
$
|
22,451
|
|
|
$
|
22,642
|
|
Nicolet
Bankshares, Inc.
|
|
|
|
|
|
|
Consolidated
Financial Summary (Unaudited) - Continued
|
|
|
|
|
|
|
|
|
At or for the
Three Months Ended
|
(In thousands, except
per share data)
|
|
3/31/2019
|
|
12/31/2018
|
|
9/30/2018
|
|
6/30/2018
|
|
3/31/2018
|
Period-End
Balances:
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
2,189,688
|
|
|
$
|
2,166,181
|
|
|
$
|
2,143,457
|
|
|
$
|
2,128,624
|
|
|
$
|
2,100,597
|
|
Allowance for loan
losses
|
|
13,370
|
|
|
13,153
|
|
|
12,992
|
|
|
12,875
|
|
|
12,765
|
|
Investment securities
available-for-sale, at fair value
|
|
407,693
|
|
|
400,144
|
|
|
410,911
|
|
|
401,975
|
|
|
401,130
|
|
Goodwill and other
intangibles, net
|
|
123,254
|
|
|
124,307
|
|
|
125,360
|
|
|
126,124
|
|
|
127,224
|
|
Total
assets
|
|
3,041,091
|
|
|
3,096,535
|
|
|
3,000,902
|
|
|
2,922,151
|
|
|
3,223,935
|
|
Deposits
|
|
2,538,486
|
|
|
2,614,138
|
|
|
2,522,156
|
|
|
2,455,536
|
|
|
2,765,090
|
|
Stockholders'
equity
|
|
398,767
|
|
|
386,609
|
|
|
377,171
|
|
|
370,584
|
|
|
363,988
|
|
Book value per common
share
|
|
42.28
|
|
|
40.72
|
|
|
39.38
|
|
|
38.43
|
|
|
37.53
|
|
Tangible book value
per common share (1)
|
|
29.21
|
|
|
27.62
|
|
|
26.29
|
|
|
25.35
|
|
|
24.41
|
|
Average
Balances:
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
2,179,420
|
|
|
$
|
2,142,870
|
|
|
$
|
2,134,448
|
|
|
$
|
2,117,828
|
|
|
$
|
2,114,345
|
|
Interest-earning
assets
|
|
2,734,936
|
|
|
2,693,752
|
|
|
2,664,316
|
|
|
2,742,976
|
|
|
2,584,070
|
|
Total
assets
|
|
3,047,068
|
|
|
2,996,553
|
|
|
2,971,247
|
|
|
3,044,466
|
|
|
2,896,533
|
|
Deposits
|
|
2,556,927
|
|
|
2,518,378
|
|
|
2,497,439
|
|
|
2,583,112
|
|
|
2,436,103
|
|
Interest-bearing
liabilities
|
|
1,946,210
|
|
|
1,867,327
|
|
|
1,931,119
|
|
|
2,084,361
|
|
|
1,925,443
|
|
Goodwill and other
intangibles, net
|
|
123,892
|
|
|
124,930
|
|
|
125,798
|
|
|
126,646
|
|
|
127,801
|
|
Stockholders'
equity
|
|
391,027
|
|
|
379,846
|
|
|
375,507
|
|
|
364,988
|
|
|
366,002
|
|
Financial Ratios:
(2)
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.37
|
%
|
|
1.44
|
%
|
|
1.45
|
%
|
|
1.28
|
%
|
|
1.34
|
%
|
Return on average
common equity
|
|
10.65
|
|
|
11.35
|
|
|
11.47
|
|
|
10.70
|
|
|
10.61
|
|
Return on average
tangible common equity (1)
|
|
15.59
|
|
|
16.91
|
|
|
17.25
|
|
|
16.39
|
|
|
16.31
|
|
Average equity to
average assets
|
|
12.83
|
|
|
12.68
|
|
|
12.64
|
|
|
11.99
|
|
|
12.64
|
|
Stockholders' equity
to assets
|
|
13.11
|
|
|
12.49
|
|
|
12.57
|
|
|
12.68
|
|
|
11.29
|
|
Tangible common
equity to tangible assets (1)
|
|
9.44
|
|
|
8.83
|
|
|
8.76
|
|
|
8.74
|
|
|
7.65
|
|
Loan yield
|
|
5.51
|
|
|
5.38
|
|
|
5.35
|
|
|
5.10
|
|
|
5.39
|
|
Earning asset
yield
|
|
4.89
|
|
|
4.76
|
|
|
4.75
|
|
|
4.46
|
|
|
4.81
|
|
Cost of
interest-bearing deposits
|
|
1.04
|
|
|
0.98
|
|
|
0.87
|
|
|
0.77
|
|
|
0.68
|
|
Cost of
funds
|
|
1.18
|
|
|
1.12
|
|
|
1.01
|
|
|
0.91
|
|
|
0.82
|
|
Net interest
margin
|
|
4.05
|
|
|
3.98
|
|
|
4.02
|
|
|
3.77
|
|
|
4.20
|
|
Net loan charge-offs
to average loans
|
|
(0.00)
|
|
|
0.01
|
|
|
0.04
|
|
|
0.08
|
|
|
0.08
|
|
Nonperforming loans
to total loans
|
|
0.40
|
|
|
0.25
|
|
|
0.48
|
|
|
0.51
|
|
|
0.56
|
|
Nonperforming assets
to total assets
|
|
0.30
|
|
|
0.19
|
|
|
0.38
|
|
|
0.41
|
|
|
0.40
|
|
Allowance for loan
losses to loans
|
|
0.61
|
|
|
0.61
|
|
|
0.61
|
|
|
0.60
|
|
|
0.61
|
|
Effective tax
rate
|
|
24.46
|
|
|
26.83
|
|
|
23.00
|
|
|
24.88
|
|
|
23.18
|
|
Selected
Items:
|
|
|
|
|
|
|
|
|
|
|
Interest income from
resolving PCI loans (rounded)
|
|
$
|
200
|
|
|
$
|
100
|
|
|
$
|
300
|
|
|
$
|
100
|
|
|
$
|
1,500
|
|
Tax-equivalent
adjustment on net interest income
|
|
272
|
|
|
278
|
|
|
285
|
|
|
289
|
|
|
298
|
|
|
|
1
|
The ratios of
tangible book value per common share, return on average tangible
common equity, and tangible common equity to tangible assets
exclude goodwill and other intangibles, net. These financial
ratios have been included as they are considered to be critical
metrics with which to analyze and evaluate financial condition and
capital strength.
|
2
|
Income
statement-related ratios for partial-year periods are
annualized.
|
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SOURCE Nicolet Bankshares, Inc.