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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (Date of earliest event reported): January 16, 2024
 
NICOLET BANKSHARES, INC.
(Exact name of registrant as specified in its charter)
Wisconsin 001-37700 47-0871001
(State or other jurisdiction
of incorporation)		 (Commission
File Number)		 (IRS Employer
Identification No.)
 
111 North Washington Street
Green Bay, Wisconsin 54301
(Address of principal executive offices)
 
(920) 430-1400
(Registrant’s telephone number, including area code)
 
Not Applicable
(Former name or former address, if changed since last report)
  
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $0.01 per shareNICNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter.)
 
Emerging Growth Company  ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐





Item 2.02Results of Operations and Financial Condition.
 
On January 16, 2024, Nicolet Bankshares, Inc. (“Nicolet”) announced its earnings for the quarter and year ended December 31, 2023. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
 
Pursuant to General Instruction B.2 of Form 8-K, the information in this Item 2.02 and Exhibit 99.1, is being furnished to the Securities and Exchange Commission and shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section. Furthermore, the information in this Item 2.02 and Exhibit 99.1, shall not be deemed to be incorporated by reference into Nicolet’s filings under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01Financial Statements and Exhibits.
Exhibit No. Description of Exhibit
99.1 
104Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document


Signatures
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
Date:January 16, 2024NICOLET BANKSHARES, INC.
    
 By: /s/ H. Phillip Moore, Jr. 
         H. Phillip Moore, Jr. 
         Chief Financial Officer 


Exhibit 99.1
nicoletbanksharesa08a.jpg


FOR IMMEDIATE RELEASE
 .
NICOLET BANKSHARES, INC. ANNOUNCES 2023 RESULTS

•Net income of $31 million or adjusted net income (non-GAAP) of $28 million for fourth quarter 2023, compared to net income of $17 million or adjusted net income (non-GAAP) of $23 million in prior quarter, and net income of $28 million or adjusted net income (non-GAAP) of $28 million for fourth quarter 2022
•Net income of $62 million and adjusted net income (non-GAAP) of $101 million for 2023, compared to $94 million and adjusted net income (non-GAAP) of $99 million for 2022, significantly impacted by first quarter balance sheet repositioning
•Quarterly net interest margin of 3.30%, an increase of 14 bps over third quarter
•Solid quarter-over-quarter loan growth of $115 million (2%)
•Tangible common equity ratio increased to 7.98% at year-end 2023

Green Bay, Wisconsin, January 16, 2024 - Nicolet Bankshares, Inc. (NYSE: NIC) (“Nicolet”) announced fourth quarter 2023 net income of $31 million and earnings per diluted common share of $2.02, compared to net income of $17 million and earnings per diluted common share of $1.14 for third quarter 2023, and net income of $28 million and earnings per diluted common share of $1.83 for fourth quarter 2022. Net income for the year ended December 31, 2023 was $62 million and earnings per diluted common share of $4.08, compared to net income of $94 million and earnings per diluted common share of $6.56 for the year ended December 31, 2022.

Net income reflected certain non-core items and the related tax effect of each, including the first quarter U.S. Treasury securities sale loss, the change in Wisconsin state tax law that impacted the third quarter, expected loss (provision expense) on a bank subordinated debt investment, a fourth quarter early contract termination charge, merger-related expenses, Day 2 credit provision expense required under the CECL model, as well as gains / (losses) on other assets and investments. These non-core items positively impacted earnings per diluted common share $0.17 for fourth quarter 2023, compared to a negative impact of $0.40 for third quarter 2023, and $0.01 for fourth quarter 2022. For the year ended December 31, 2023, these non-core items negatively impacted earnings per diluted common share $2.64, and negatively impacted earnings per diluted common share $0.34 for full year 2022.

“I’m pleased to say Nicolet produced the highest quarterly core net income in our 23-year history” said Mike Daniels, Chairman, President and CEO of Nicolet. “The actions we took this year to position Nicolet for long-term success came to fruition as the year ended. We saw strong loan growth, solid growth in fee income, resilience in our credit quality, and a continued increase in net interest margin.”

Daniels continued, “2023 was not the year we thought it would be, but we certainly made the most of the year it became. Our employees continue to shine during macroeconomic uncertainty, which shows in the fact that we grew organically in all three main revenue areas (commercial, retail, and wealth). Our value proposition and entrepreneurial spirit continue to resonate in the communities we serve. The proactive balance sheet repositioning at the beginning of the year produced the results we thought it would, as we have a clean balance sheet and a rising net interest margin. The results we saw at the end of this year give us confidence that we are well positioned to maintain our momentum into 2024. Lastly, I’d be remiss to not thank my co-founder, Bob Atwell, for his contributions to Nicolet over the past 23 years. While his transition from Chairman is complete, we look forward to his ongoing commitment and energy as a Board member to this organization.”

Nicolet’s 2023 results were impacted by the Wisconsin State Budget signed in July 2023 and retroactive to January 1, 2023, which included language that provides financial institutions with an exemption from state taxable income for interest, fees, and penalties earned on loans to existing Wisconsin-based business or agriculture purpose loans that are $5 million or less in balance on January 1, 2023, and to new loans that meet the criteria. The impact of this tax law change to Nicolet moving forward will be a reduction / elimination of State income taxes being expensed, resulting in an estimated
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effective tax rate of 19.5% (compared to a 25% effective tax rate previously). However, the elimination of State income tax expense also required a valuation allowance to be established for the State-related deferred tax asset as of the effective date of the legislation, and a one-time $9.1 million charge to state income tax expense was recognized in third quarter to establish this valuation allowance.

Nicolet’s financial performance and certain balance sheet line items also were impacted by the timing and size of Nicolet’s August 2022 acquisition of Charter Bankshares, Inc. (“Charter”). Certain income statement results, average balances, and related ratios for 2022 include contributions from Charter from the acquisition date. At acquisition, Charter added assets of $1.1 billion, loans of $827 million, and deposits of $869 million.

Balance Sheet Review
At December 31, 2023, period end assets were $8.5 billion, an increase of $53 million (1%) from September 30, 2023, mostly growth in loans, partly offset by lower cash balances. Total loans increased $115 million (2%) from September 30, 2023, with growth in agricultural, commercial and industrial, and residential real estate loans. Total deposits of $7.2 billion at December 31, 2023, increased slightly ($15 million) from September 30, 2023. Total borrowings declined $31 million due to the early redemption of one subordinated note issuance. Total capital was $1.0 billion at December 31, 2023, an increase of $65 million over September 30, 2023, with earnings and favorable market valuations on available for sale securities, partly offset by the quarterly common stock dividend.

Asset Quality
Nonperforming assets were $28 million and represented 0.33% of total assets at December 31, 2023, compared to $32 million or 0.37% at September 30, 2023, and $40 million or 0.46% at December 31, 2022. The allowance for credit losses-loans was $64 million and represented 1.00% of total loans at December 31, 2023, compared to $63 million (or 1.01% of total loans) at September 30, 2023, and $62 million (or 1.00% of total loans) at December 31, 2022. Asset quality trends remain solid and loan net charge-offs were negligible.

Income Statement Review - Year
Net income was $62 million and adjusted net income (non-GAAP) was $101 million for the year ended December 31, 2023, compared to net income of $94 million and adjusted net income (non-GAAP) was $99 million for the year ended December 31, 2022.

Net interest income was $242 million for the year ended December 31, 2023, up $2 million from the year ended December 31, 2022, the net of $109 million higher interest income and $107 million higher interest expense. The higher interest income was largely attributable to the repricing of new and renewed loans in a rising interest rate environment, as well as the reinvestment of security sales and maturities (mostly U.S. Treasury securities) into investable cash balances at higher rates. The increase in interest expense was due to both higher average balances and higher average rates, reflecting the rising interest rate environment as well as a shift to higher rate deposit products. The net interest margin for 2023 was 3.18%, down 22 bps from 3.40% for 2022. The yield on interest-earning assets increased 114 bps (to 5.02%) due to the rising interest rate environment, as well as the sales and maturities of securities reinvested as investable cash, while the cost of funds increased 194 bps (to 2.65%) for 2023, attributable mainly to the repricing of deposits and funding in the higher interest rate environment.

Noninterest income of $36 million for full year 2023 was down $22 million from full year 2022, significantly impacted by the first quarter balance sheet repositioning. Excluding net asset gains (losses), noninterest income for 2023 was $69 million, a $14 million increase over 2022. The year-over-year increase included higher wealth revenue (from growth in accounts and assets under management) and card interchange income, a favorable change in the fair value of nonqualified deferred compensation plan assets, and higher net LSR income, partly offset by lower net mortgage income.

Noninterest expense of $186 million for full year 2023 reflected an increase of $25 million over 2022. Personnel expense increased $10 million due to higher salaries and fringe benefits (mostly health insurance). Non-personnel expenses increased $15 million year-over-year mostly data processing (including a $3 million early contract termination charge and higher volume-based system processing) and office expense.

Income tax expense was $25 million (effective tax rate 28.99%) for the year ended December 31, 2023, compared to $31 million (effective tax rate 25.03%) for the year ended December 31, 2022. The change in income tax expense
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included a $9.1 million charge to income tax expense to establish a tax valuation allowance for the Wisconsin tax law change noted above.

Income Statement Review - Quarter
Net income was $31 million and adjusted net income (non-GAAP) was $28 million for fourth quarter 2023, compared to net income of $17 million and adjusted net income (non-GAAP) of $23 million for third quarter 2023.

Net interest income was $64 million for fourth quarter 2023, up $3 million from third quarter 2023. Interest income increased $4 million mostly due to the repricing of new and renewed loans in a rising interest rate environment, while interest expense increased $1 million due to both higher average funding balances and higher average rates. The net interest margin for fourth quarter 2023 was 3.30%, up 14 bps from 3.16% for third quarter 2023. The yield on interest-earning assets increased 17 bps (to 5.32%) due to the sale of U.S. Treasury securities reinvested as investable cash, as well as the rising interest rate environment, while the cost of funds increased 7 bps (to 2.90%) for fourth quarter 2023, attributable mainly to the repricing of deposits and funding in the higher interest rate environment.

Noninterest income of $24 million for fourth quarter 2023 increased $8 million over third quarter 2023, mostly due net asset gains of $6 million in fourth quarter 2023, which included a $9 million pre-tax gain on the sale of Nicolet’s member interest in UFS, LLC, partly offset by a $3 million loss on the sale of certain securities. Excluding the net asset gains (losses), noninterest income for fourth quarter 2023 was $18 million, a $2 million increase from third quarter 2023, mostly due to favorable changes in the fair value of nonqualified deferred compensation plan assets.

Noninterest expense of $50 million for fourth quarter 2023, increased $5 million over third quarter 2023. Personnel expense increased $3 million on higher health insurance and an increase in the fair value of nonqualified deferred compensation plan liabilities. Non-personnel expenses increased $2 million (7%) between the sequential quarters, mostly higher data processing (from the early contract termination charged noted above).

Income tax expense was $7 million (effective tax rate 18.06%) for fourth quarter 2023, compared to $15 million (effective tax rate 46.09%) for third quarter 2023. Third quarter 2023 income tax expense included a $9.1 million charge to income tax expense to establish a tax valuation allowance, partly offset by a $3.0 million reduction to income tax expense to reverse amounts recorded in the first half of 2023, both related to the Wisconsin tax law change noted above.

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 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 or 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 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 Private Securities Litigation Reform Act. Forward-looking statements
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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 expected future effective tax rate.

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 future legislative changes to the taxes imposed upon Nicolet, potential expansion into other jurisdictions that impose different or higher taxes and our ability to generate loans that qualify for the Wisconsin tax reduction / elimination. Additional factors which could affect the forward looking statements can be found in Nicolet’s 2022 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.

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.


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Nicolet Bankshares, Inc.
Consolidated Balance Sheets (Unaudited)
(In thousands, except share data)
12/31/20239/30/20236/30/20233/31/202312/31/2022
Assets
Cash and due from banks$129,898 $109,414 $122,021 $93,462 $121,211 
Interest-earning deposits361,533 436,466 383,185 20,718 33,512 
Cash and cash equivalents491,431 545,880 505,206 114,180 154,723 
Certificates of deposit in other banks6,374 7,598 9,808 11,293 12,518 
Securities available for sale, at fair value802,573 793,826 921,108 1,023,176 917,618 
Securities held to maturity, at amortized cost— — — — 679,128 
Other investments57,560 58,367 57,578 57,482 65,286 
Loans held for sale4,160 6,500 3,849 4,962 1,482 
Loans6,353,942 6,239,257 6,222,776 6,223,732 6,180,499 
Allowance for credit losses - loans(63,610)(63,160)(62,811)(62,412)(61,829)
Loans, net
6,290,332 6,176,097 6,159,965 6,161,320 6,118,670 
Premises and equipment, net118,756 117,744 117,278 112,569 108,956 
Bank owned life insurance (“BOLI”)
169,392 168,223 167,192 166,107 165,137 
Goodwill and other intangibles, net394,366 396,208 398,194 400,277 402,438 
Accrued interest receivable and other assets133,734 145,719 142,450 140,988 138,013 
Total assets$8,468,678 $8,416,162 $8,482,628 $8,192,354 $8,763,969 
Liabilities and Stockholders' Equity
Liabilities:
Noninterest-bearing demand deposits
$1,958,709 $2,020,074 $2,059,939 $2,094,623 $2,361,816 
Interest-bearing deposits
5,239,091 5,162,314 5,138,665 4,833,956 4,817,105 
Total deposits
7,197,800 7,182,388 7,198,604 6,928,579 7,178,921 
Short-term borrowings— — 50,000 50,000 317,000 
Long-term borrowings166,930 197,754 197,577 197,448 225,342 
Accrued interest payable and other liabilities64,941 61,559 58,809 54,535 70,177 
Total liabilities7,429,671 7,441,701 7,504,990 7,230,562 7,791,440 
Stockholders' Equity:
Common stock149 147 147 147 147 
Additional paid-in capital633,770 626,348 624,897 623,746 621,988 
Retained earnings
458,261 431,317 417,863 398,966 407,864 
Accumulated other comprehensive income (loss)
(53,173)(83,351)(65,269)(61,067)(57,470)
Total stockholders' equity1,039,007 974,461 977,638 961,792 972,529 
Total liabilities and stockholders' equity$8,468,678 $8,416,162 $8,482,628 $8,192,354 $8,763,969 
Common shares outstanding14,894,209 14,757,565 14,717,938 14,698,265 14,690,614 


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Nicolet Bankshares, Inc.
Consolidated Statements of Income (Loss) (Unaudited)
For the Three Months EndedFor the Years Ended
(In thousands, except per share data)
12/31/20239/30/20236/30/20233/31/202312/31/202212/31/202312/31/2022
Interest income:
Loans, including loan fees$90,265 $87,657 $84,091 $79,142 $76,367 $341,155 $243,680 
Taxable investment securities4,737 4,351 4,133 4,961 5,771 18,182 21,383 
Tax-exempt investment securities1,394 1,424 1,476 1,737 1,915 6,031 4,418 
Other interest income7,149 6,452 2,357 1,536 1,703 17,494 4,437 
Total interest income103,545 99,884 92,057 87,376 85,756 382,862 273,918 
Interest expense:
Deposits36,583 34,964 29,340 24,937 12,512 125,824 21,752 
Short-term borrowings— 474 1,108 3,212 2,624 4,794 3,246 
Long-term borrowings2,680 2,972 2,570 2,506 2,528 10,728 8,959 
Total interest expense39,263 38,410 33,018 30,655 17,664 141,346 33,957 
Net interest income64,282 61,474 59,039 56,721 68,092 241,516 239,961 
Provision for credit losses
1,000 450 450 3,090 1,850 4,990 11,500 
Net interest income after provision for credit losses
63,282 61,024 58,589 53,631 66,242 236,526 228,461 
Noninterest income:
Wealth management fee income6,308 6,057 5,870 5,512 5,170 23,747 20,870 
Mortgage income, net
1,856 2,020 1,822 1,466 1,311 7,164 8,497 
Service charges on deposit accounts
1,475 1,492 1,529 1,480 1,502 5,976 6,104 
Card interchange income
3,306 3,321 3,331 3,033 3,100 12,991 11,643 
BOLI income
1,161 1,090 1,073 1,200 1,151 4,524 3,818 
Asset gains (losses), net
5,947 31 (318)(38,468)260 (32,808)3,130 
Deferred compensation plan asset market valuations949 (457)499 946 314 1,937 (2,040)
LSR income, net1,027 1,108 1,135 1,155 (324)4,425 (1,366)
Other noninterest income
2,405 1,879 1,900 1,832 2,362 8,016 7,264 
Total noninterest income
24,434 16,541 16,841 (21,844)14,846 35,972 57,920 
Noninterest expense:
Personnel expense
26,937 23,944 23,900 24,328 23,705 99,109 88,713 
Occupancy, equipment and office
9,567 9,027 8,845 8,783 8,246 36,222 29,722 
Business development and marketing
1,854 1,869 1,946 2,121 2,303 7,790 8,472 
Data processing
7,043 4,643 4,218 3,988 3,871 19,892 14,518 
Intangibles amortization
1,842 1,986 2,083 2,161 2,217 8,072 6,616 
FDIC assessments950 1,500 1,009 540 480 3,999 1,920 
Merger-related expense— — 26 163 492 189 1,664 
Other noninterest expense
2,103 2,769 2,930 2,791 2,675 10,593 9,019 
Total noninterest expense
50,296 45,738 44,957 44,875 43,989 185,866 160,644 
Income (loss) before income tax expense37,420 31,827 30,473 (13,088)37,099 86,632 125,737 
Income tax expense (benefit)
6,759 14,669 7,878 (4,190)9,498 25,116 31,477 
Net income (loss)$30,661 $17,158 $22,595 $(8,898)$27,601 $61,516 $94,260 
Earnings (loss) per common share:
Basic
$2.07 $1.16 $1.54 $(0.61)$1.88 $4.17 $6.78 
Diluted
$2.02 $1.14 $1.51 $(0.61)$1.83 $4.08 $6.56 
Common shares outstanding:
Basic weighted average
14,82314,74014,71114,69414,68514,74313,909
Diluted weighted average
15,14215,10014,96014,69415,11015,07114,375
 
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Nicolet Bankshares, Inc.
Consolidated Financial Summary (Unaudited)
For the Three Months EndedFor the Years Ended
(In thousands, except share & per share data)
12/31/20239/30/20236/30/20233/31/202312/31/202212/31/202312/31/2022
Selected Average Balances:
Loans
$6,263,971 $6,230,336 $6,237,757 $6,201,780 $6,087,146 $6,233,623 $5,255,646 
Investment securities
897,437 962,607 1,068,144 1,508,535 1,701,531 1,107,105 1,619,272 
Interest-earning assets
7,683,495 7,676,895 7,497,935 7,830,590 7,963,485 7,671,839 7,107,449 
Cash and cash equivalents558,473 513,250 203,883 127,726 179,381 352,458 281,849 
Goodwill and other intangibles, net
395,158 397,052 399,080 401,212 403,243 398,106 361,471 
Total assets
8,415,169 8,417,456 8,228,600 8,570,623 8,688,741 8,407,562 7,837,695 
Deposits
7,189,650 7,156,577 6,941,037 7,060,262 7,222,415 7,087,427 6,613,924 
Interest-bearing liabilities
5,358,445 5,385,292 5,212,285 5,391,107 5,262,278 5,336,825 4,776,924 
Stockholders’ equity (common)996,745 983,133 967,142 970,108 954,970 979,366 886,385 
Selected Ratios: (1)
Book value per common share$69.76 $66.03 $66.42 $65.44 $66.20 $69.76 $66.20 
Tangible book value per common share (2)
$43.28 $39.18 $39.37 $38.20 $38.81 $43.28 $38.81 
Return on average assets
1.45 %0.81 %1.10 %(0.42)%1.26 %0.73 %1.20 %
Return on average common equity
12.20 6.92 9.37 (3.72)11.47 6.28 10.63 
Return on average tangible common equity (2)
20.22 11.62 15.95 (6.34)19.85 10.58 17.96 
Average equity to average assets
11.84 11.68 11.75 11.32 10.99 11.65 11.31 
Stockholders’ equity to assets
12.27 11.58 11.53 11.74 11.10 12.27 11.10 
Tangible common equity to tangible assets (2)
7.98 7.21 7.17 7.21 6.82 7.98 6.82 
Net interest margin
3.30 3.16 3.14 2.91 3.39 3.18 3.40 
Efficiency ratio
60.41 58.27 58.60 60.69 52.79 59.50 54.15 
Effective tax rate
18.06 46.09 25.85 32.01 25.60 28.99 25.03 
Selected Asset Quality Information:
Nonaccrual loans
$26,625 $29,507 $25,278 $38,895 $38,080 $26,625 $38,080 
Other real estate owned - closed branches808 884 958 1,347 1,347 808 1,347 
Other real estate owned
459 1,147 520 628 628 459 628 
Nonperforming assets
$27,892 $31,538 $26,756 $40,870 $40,055 $27,892 $40,055 
Net loan charge-offs (recoveries)
$550 $101 $51 $167 $597 $869 $730 
Allowance for credit losses-loans to loans
1.00 %1.01 %1.01 %1.00 %1.00 %1.00 %1.00 %
Net loan charge-offs to average loans (1)
0.03 0.01 0.01 0.01 0.04 0.01 0.01 
Nonperforming loans to total loans
0.42 0.47 0.41 0.62 0.62 0.42 0.62 
Nonperforming assets to total assets
0.33 0.37 0.32 0.50 0.46 0.33 0.46 
Stock Repurchase Information:
Common stock repurchased (dollars) (3)
$— $— $1,519 $— $786 $1,519 $61,483 
Common stock repurchased (full shares) (3)
— — 26,853 — 10,000 26,853 671,662 
(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.


7

Nicolet Bankshares, Inc.
Consolidated Loan & Deposit Metrics (Unaudited)
(In thousands)
12/31/20239/30/20236/30/20233/31/202312/31/2022
Period End Loan Composition
Commercial & industrial$1,284,009 $1,237,789 $1,318,567 $1,330,052 $1,304,819 
Owner-occupied commercial real estate (“CRE”)
956,594 971,397 969,202 969,064 954,599 
Agricultural1,161,531 1,108,261 1,068,999 1,065,909 1,088,607 
Commercial3,402,134 3,317,447 3,356,768 3,365,025 3,348,025 
CRE investment1,142,251 1,130,938 1,108,692 1,146,388 1,149,949 
Construction & land development310,110 326,747 337,389 333,370 318,600 
Commercial real estate1,452,361 1,457,685 1,446,081 1,479,758 1,468,549 
Commercial-based loans4,854,495 4,775,132 4,802,849 4,844,783 4,816,574 
Residential construction75,726 76,289 108,095 134,782 114,392 
Residential first mortgage1,167,109 1,136,748 1,072,609 1,014,166 1,016,935 
Residential junior mortgage200,884 195,432 184,873 177,026 177,332 
Residential real estate
1,443,719 1,408,469 1,365,577 1,325,974 1,308,659 
Retail & other55,728 55,656 54,350 52,975 55,266 
Retail-based loans1,499,447 1,464,125 1,419,927 1,378,949 1,363,925 
Total loans$6,353,942 $6,239,257 $6,222,776 $6,223,732 $6,180,499 
Period End Deposit Composition
Noninterest-bearing demand
$1,958,709 $2,020,074 $2,059,939 $2,094,623 $2,361,816 
Interest-bearing demand
1,055,520 955,746 1,030,919 1,138,415 1,279,850 
Money market
1,891,287 1,933,227 1,835,523 1,886,879 1,707,619 
Savings768,401 789,045 821,803 865,824 931,417 
Time1,523,883 1,484,296 1,450,420 942,838 898,219 
Total deposits$7,197,800 $7,182,388 $7,198,604 $6,928,579 $7,178,921 
Brokered transaction accounts$166,861 $146,517 $173,107 $233,393 $252,829 
Brokered time deposits448,582 457,433 566,405 289,181 339,066 
Total brokered deposits$615,443 $603,950 $739,512 $522,574 $591,895 
Customer transaction accounts$5,507,056 $5,551,575 $5,575,077 $5,752,348 $6,027,873 
Customer time deposits1,075,301 1,026,863 884,015 653,657 559,153 
Total customer deposits (core)
$6,582,357 $6,578,438 $6,459,092 $6,406,005 $6,587,026 


8

Nicolet Bankshares, Inc.
Net Interest Income and Net Interest Margin Analysis (Unaudited)
For the Three Months Ended
December 31, 2023September 30, 2023December 31, 2022
AverageAverageAverageAverageAverageAverage
(In thousands)BalanceInterestRateBalanceInterestRateBalanceInterestRate
ASSETS
Total loans (1) (2)
$6,263,971 $90,313 5.66 %$6,230,336 $87,701 5.54 %$6,087,146 $76,406 4.93 %
Investment securities (2)
897,437 6,567 2.93 %962,607 6,235 2.59 %1,701,531 8,302 1.95 %
Other interest-earning assets522,087 7,149 5.37 %483,952 6,452 5.23 %174,808 1,703 3.85 %
Total interest-earning assets7,683,495 $104,029 5.32 %7,676,895 $100,388 5.15 %7,963,485 $86,411 4.27 %
Other assets, net731,674 740,561 725,256 
Total assets$8,415,169 $8,417,456 $8,688,741 
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing core deposits$4,570,493 $29,730 2.58 %$4,491,858 $27,628 2.44 %$4,175,671 $8,477 0.81 %
Brokered deposits601,379 6,853 4.52 %651,745 7,336 4.47 %611,226 4,035 2.62 %
Total interest-bearing deposits5,171,872 36,583 2.81 %5,143,603 34,964 2.70 %4,786,897 12,512 1.04 %
Wholesale funding186,573 2,680 5.62 %241,689 3,446 5.58 %475,381 5,152 4.27 %
Total interest-bearing liabilities5,358,445 $39,263 2.90 %5,385,292 $38,410 2.83 %5,262,278 $17,664 1.33 %
Noninterest-bearing demand deposits2,017,778 2,012,974 2,435,518 
Other liabilities42,201 36,057 35,975 
Stockholders' equity996,745 983,133 954,970 
Total liabilities and stockholders' equity$8,415,169 $8,417,456 $8,688,741 
Net interest income and rate spread$64,766 2.42 %$61,978 2.32 %$68,747 2.94 %
Net interest margin3.30 %3.16 %3.39 %
Loan purchase accounting accretion (3)
$1,587 0.10 %$1,637 0.10 %$1,935 0.09 %
For the Years Ended
December 31, 2023December 31, 2022
AverageAverageAverageAverage
(In thousands)BalanceInterestRateBalanceInterestRate
ASSETS
Total loans (1) (2)
$6,233,623 $341,332 5.48 %$5,255,646 $243,819 4.64 %
Investment securities (2)
1,107,105 26,142 2.36 %1,619,272 27,575 1.70 %
Other interest-earning assets331,111 17,494 5.28 %232,531 4,437 1.91 %
Total interest-earning assets7,671,839 $384,968 5.02 %7,107,449 $275,831 3.88 %
Other assets, net735,723 730,246 
Total assets$8,407,562 $7,837,695 
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing core deposits$4,417,426 $99,673 2.26 %$3,987,201 $15,324 0.38 %
Brokered deposits615,209 26,151 4.25 %490,871 6,428 1.31 %
Total interest-bearing deposits5,032,635 125,824 2.50 %4,478,072 21,752 0.49 %
Wholesale funding304,190 15,522 5.10 %298,852 12,205 4.08 %
Total interest-bearing liabilities5,336,825 $141,346 2.65 %4,776,924 $33,957 0.71 %
Noninterest-bearing demand deposits2,054,792 2,135,852 
Other liabilities36,579 38,534 
Stockholders' equity979,366 886,385 
Total liabilities and stockholders' equity$8,407,562 $7,837,695 
Net interest income and rate spread$243,622 2.37 %$241,874 3.17 %
Net interest margin3.18 %3.40 %
Loan purchase accounting accretion (3)
$6,496 0.10 %$4,572 0.06 %
(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 above, and the related impact to net interest margin.
9

Nicolet Bankshares, Inc.
Reconciliation of Non-GAAP Financial Measures (Unaudited)
For the Three Months EndedFor the Years Ended
(In thousands, except per share data)
12/31/20239/30/20236/30/20233/31/202312/31/202212/31/202312/31/2022
Adjusted net income (loss) reconciliation: (1)
Net income (loss) (GAAP)$30,661 $17,158 $22,595 $(8,898)$27,601 $61,516 $94,260 
Adjustments:
Provision expense (2)
— — — 2,340 — 2,340 8,000 
Assets (gains) losses, net(5,947)(31)318 38,468 (260)32,808 (3,130)
Merger-related expense— — 26 163 492 189 1,664 
Contract termination charge2,689 — — — — 2,689 — 
Adjustments subtotal(3,258)(31)344 40,971 232 38,026 6,534 
Tax on Adjustments (3)
(635)(6)86 10,243 58 7,415 1,634 
Tax - Wisconsin Tax Law Change (4)
— 6,151 — — — 9,118 — 
Adjusted net income (Non-GAAP)$28,038 $23,284 $22,853 $21,830 $27,775 $101,245 $99,161 
Diluted earnings (loss) per common share:
Diluted earnings (loss) per common share (GAAP)$2.02 $1.14 $1.51 $(0.61)$1.83 $4.08 $6.56 
Adjusted Diluted earnings per common share (Non-GAAP)$1.85 $1.54 $1.53 $1.45 $1.84 $6.72 $6.90 
Tangible assets: (5)
Total assets$8,468,678 $8,416,162 $8,482,628 $8,192,354 $8,763,969 
Goodwill and other intangibles, net394,366 396,208 398,194 400,277 402,438 
Tangible assets$8,074,312 $8,019,954 $8,084,434 $7,792,077 $8,361,531 
Tangible common equity: (5)
Stockholders’ equity (common)$1,039,007 $974,461 $977,638 $961,792 $972,529 
Goodwill and other intangibles, net394,366 396,208 398,194 400,277 402,438 
Tangible common equity$644,641 $578,253 $579,444 $561,515 $570,091 
Tangible average common equity: (5)
Average stockholders’ equity (common)$996,745 $983,133 $967,142 $970,108 $954,970 $979,366 $886,385 
Average goodwill and other intangibles, net395,158 397,052 399,080 401,212 403,243 398,106 361,471 
Average tangible common equity$601,587 $586,081 $568,062 $568,896 $551,727 $581,260 $524,914 
Note: Numbers may not sum due to rounding.
(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)Provision expense for 2023 is attributable to the expected loss on a bank subordinated debt investment, and the provision expense for 2022 is attributable to the Day 2 allowance from the acquisition of Charter Bankshares, Inc.
(3)The effective tax rate for periods prior to the July 1, 2023, effective date of the Wisconsin 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%.
(4)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.
(5)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.
10
v3.23.4
Cover
Jan. 16, 2024
Cover [Abstract]  
Document Type 8-K
Entity Registrant Name NICOLET BANKSHARES, INC.
Entity Incorporation, State or Country Code WI
Entity File Number 001-37700
Entity Tax Identification Number 47-0871001
Entity Address, Address Line One 111 North Washington Street
Entity Address, City or Town Green Bay
Entity Address, State or Province WI
Entity Address, Postal Zip Code 54301
City Area Code 920
Local Phone Number 430-1400
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common stock, par value $0.01 per share
Trading Symbol NIC
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0001174850
Amendment Flag false
Document Period End Date Jan. 16, 2024
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