NICOLET BANKSHARES, INC. ANNOUNCES SECOND QUARTER 2022 EARNINGS
NICOLET BANKSHARES, INC. ANNOUNCES SECOND QUARTER 2022 EARNINGS
PR Newswire
GREEN BAY, Wis., July 19, 2022
Net income of $24 million, consistent with prior quarter and 31% higher than second quarter 2021Net income of $48 million for first six month…
NICOLET BANKSHARES, INC. ANNOUNCES SECOND QUARTER 2022 EARNINGS
PR Newswire
GREEN BAY, Wis., July 19, 2022
- Net income of $24 million, consistent with prior quarter and 31% higher than second quarter 2021
- Net income of $48 million for first six months of 2022, compared to $37 million for first six months of 2021
- Earnings per diluted common share of $1.73 and $3.43 for the three and six months ended June 30
- Return on average assets of 1.32% and 1.31% for the three and six months ended June 30
- Return on average common equity and return on average tangible common equity of 11.48% and 19.21%, respectively, for second quarter 2022
- Regulatory approvals for Charter merger received
GREEN BAY, Wis., July 19, 2022 /PRNewswire/ -- Nicolet Bankshares, Inc. (NYSE: NIC) ("Nicolet" or the "Company") announced second quarter 2022 net income of $24 million and earnings per diluted common share of $1.73, compared to $24 million and $1.70 for first quarter 2022, and $18 million and $1.77 for second quarter 2021, respectively. Annualized quarterly return on average assets was 1.32%, 1.30% and 1.62%, for second quarter 2022, first quarter 2022 and second quarter 2021, respectively.
Net income for the six months ended June 30, 2022 was $48 million and earnings per diluted common share was $3.43, compared to net income of $37 million and earnings per diluted common share of $3.52 for the first half of 2021. Annualized return on average assets was 1.31% and 1.63% for the first six months of 2022 and 2021, respectively.
On March 29, 2022, the Company entered into a definitive merger agreement with Charter Bankshares, Inc. ("Charter") pursuant to which Charter will merge with and into Nicolet. Nicolet expects to issue approximately 1.26 million shares of Nicolet common stock and $38.8 million in cash for the acquisition of Charter. At March 31, 2022, Charter had total assets of $1.1 billion. As of July 12, 2022, all regulatory approvals for the Charter merger had been received. The merger is expected to close in the third quarter of 2022, subject to customary closing conditions.
"Despite the potential distractions of rate hikes and inflationary pressures, our team has remained focused on serving our customers. This focus has resulted in strong fundamental performance, including good loan growth, across our core customer base," said Mike Daniels, President and CEO of Nicolet. "Our customers continue to show that they are smart and resilient as they have kept their balance sheets strong and remain on solid ground. The partnership between our bankers and customers continues to create the shared success upon which Nicolet was founded."
"Our focus on asset quality and bringing back Ag loan participations have been executed well by our team. Our credit quality remains very strong, and nonperforming assets and charge-offs have declined for the second consecutive quarter. We also repurchased approximately $100 million in previously participated Ag loans this quarter which has helped us deliver on our strategies in the Ag sector. The team has done a good job in a short time," Daniels added.
Executive Vice President Eric Witczak commented, "As with all our merger integrations, we remain as focused on the people side as we do the systems side. We believe that we found some wonderful community-focused people, led by Paul Kohler, that will bring the Nicolet story to life in Western Wisconsin and Minnesota."
The Company's financial performance and certain balance sheet line items were impacted by the timing and size of Nicolet's 2021 acquisitions, Mackinac Financial Corporation ("Mackinac") on September 3, 2021 and County Bancorp, Inc. ("County") on December 3, 2021. Certain income statement results, average balances and related ratios for 2021 include partial contributions from Mackinac and County, each from the respective acquisition date. At acquisition, Mackinac added assets of $1.5 billion, loans of $0.9 billion, and deposits of $1.4 billion, while at acquisition County added assets of $1.4 billion, loans of $1.0 billion, and deposits of $1.0 billion.
At June 30, 2022, period end assets were $7.4 billion, an increase of $50 million (1%) from March 31, 2022, including strong loan growth, partly offset by lower cash and cash equivalents. Total loans increased $295 million (6%) from March 31, 2022, with solid organic loan growth in agricultural, commercial and industrial, and residential first mortgage loans, as well as the repurchase of approximately $100 million previously participated agricultural loans. Excluding the purchased agricultural loans, organic loan growth was 4% from March 31, 2022. Total deposits of $6.3 billion at June 30, 2022, increased $55 million (1%) from March 31, 2022, primarily noninterest-bearing deposits. Total capital was $839 million at June 30, 2022, an increase of $3 million since March 31, 2022, with current quarter earnings partly offset by unfavorable changes in the fair value of available for sale securities and common stock repurchases.
Nonperforming assets were $42 million and represented 0.56% of total assets at June 30, 2022, compared to $49 million or 0.68% at March 31, 2022. The allowance for credit losses-loans was $51 million and represented 1.02% of total loans at June 30, 2022, compared to $50 million and 1.07% at March 31, 2022, reflecting strong loan growth, solid asset quality trends, and negligible net charge-offs.
Net income for second quarter 2022 was $24 million, consistent with net income of $24 million for first quarter 2022.
Net interest income was $55 million for second quarter 2022, up slightly ($1 million) from first quarter 2022, reflecting strong loan volumes and one additional day in the quarter, though still pressured on rates from competitive pricing and the lag in repricing to current market interest rates. Average interest-earning assets of $6.6 billion were down $132 million from first quarter 2022. Average loans of $4.8 billion grew $150 million over first quarter 2022, including both organic loan growth and the repurchase of previously participated agricultural loans, while other interest-earning assets were down $279 million, mostly cash, and average investments were minimally changed. Average interest-bearing liabilities of $4.4 billion decreased $258 million from first quarter 2022, primarily average interest-bearing deposits due to a reduction in retail deposits.
The net interest margin for second quarter 2022 was 3.34%, up 11bps from 3.23% for first quarter 2022. The yield on interest-earning assets increased 13bps (to 3.61%) largely due to the change in mix of interest-earning assets, which shifted to 73% loans, 24% investments, and 3% other interest-earning assets (mostly cash) for second quarter 2022 compared to 70% loans, 23% investments, and 7% other interest-earning assets for first quarter 2022. The cost of funds increased 5bps (to 0.40%) for second quarter 2022, attributable mainly to the repricing of deposits and funding in the higher interest rate environment.
Noninterest income was $14 million for second quarter 2022, down $2 million (11%) compared to first quarter 2022. Net mortgage income of $2 million was down $1 million from first quarter 2022, primarily due to lower gains on sales from declining secondary market volumes. Trust services fee income and brokerage fee income combined decreased $0.7 million (12%) from first quarter 2022, mostly from unfavorable market-related declines. Card interchange income grew $0.4 million (14%) over first quarter 2022 on higher volume and activity. Other noninterest income was down $0.6 million between the sequential quarters mostly due to an $0.8 million unfavorable change in the fair value of nonqualified deferred compensation plan assets from recent market declines, partly offset by $0.2 million higher net loan servicing revenue. Both quarters also included net asset gains primarily related to sales of other real estate owned (mostly closed bank branch locations).
Noninterest expense of $37 million decreased $1 million (3%) from first quarter 2022. Personnel expense decreased $1.5 million (7%) from first quarter 2022, largely due to the offsetting change to the nonqualified deferred compensation plan liabilities and lower health claim experience, partly offset by higher salary expense from the increase in hourly pay or base salary effective at the end of March 2022, which benefitted 67% of our employee base. Non-personnel expenses increased $0.5 million (3%), largely due to $0.5 million higher merger-related expense, $0.2 million higher marketing (timing of marketing campaigns and community support), and $0.2 million higher data processing (volume-based), partly offset by a $0.3 million decline in other noninterest expense from lower costs to carry closed bank branches given the recent sales.
Nicolet Bankshares, Inc. is the bank holding company of Nicolet National Bank, a growing, full-service, community bank providing services ranging from commercial, agricultural and consumer banking to wealth management and retirement plan services. Founded in Green Bay in 2000, Nicolet National Bank operates branches in Northeast and Central Wisconsin, Northern Michigan and the upper peninsula of Michigan. More information can be found at www.nicoletbank.com.
This communication contains non-GAAP financial measures, such as non-GAAP net income, non-GAAP earnings per diluted common share, tangible book value per common share, return on average tangible common equity, and tangible common equity to tangible assets, where management believes such measures to be helpful to management, investors and others in understanding Nicolet's results of operations or financial position. 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.
Certain statements contained in this communication, which are not statements of historical fact, constitute forward-looking statements within the meaning of the federal securities law. Such statements include, but are not limited to, statements about Nicolet's business plans, objectives, expectations and intentions, including without limitation Nicolet's prospects and pipelines looking strong and business focus moving forward, as well as certain plans, expectations, goals, the expected closing date of the Charter merger as well as the projections and benefits relating to the proposed merger between Nicolet and Charter, all of which are subject to numerous assumptions, risks and uncertainties. Words or phrases such as "anticipate," "believe," "aim," "can," "conclude," "continue," "could," "estimate," "expect," "foresee," "goal," "intend," "may," "might," "outlook," "possible," "plan," "predict," "project," "potential," "seek," "should," "target," "will," "will likely," "would," or the negative of these terms or other comparable terminology, as well as similar expressions, are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.
Forward-looking statements are not historical facts but instead express only management's beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management's control. It is possible that actual results and outcomes may differ, possibly materially, from the anticipated results or outcomes indicated in these forward-looking statements. In addition to factors disclosed in reports filed by Nicolet with the SEC, risks and uncertainties, including but not limited to risks and uncertainties for Nicolet with respect to its proposed merger with Charter, that may cause actual results or outcomes to differ materially from those anticipated include, but are not limited to: (1) the possibility that the proposed merger will not be completed due to the failure to satisfy one or more of the closing conditions of the merger; (2) the possibility that any of the anticipated benefits of the proposed merger will not be realized or will not be realized within the expected time period; (3) the risk that integration of Charter's operations with those of Nicolet will be materially delayed or will be more costly or difficult than expected; (4) the parties' inability to meet expectations regarding the timing of the proposed merger; (5) changes to tax legislation and their potential effects on the accounting for the proposed merger; (6) diversion of management's attention from ongoing business operations and opportunities due to the proposed merger; (7) the challenges of integrating and retaining key employees; (8) the effect of the announcement of the proposed merger on Nicolet's, Charter's or the combined company's respective customer and employee relationships and operating results; (9) the possibility that the proposed merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (10) dilution caused by Nicolet's issuance of additional shares of Nicolet common stock in connection with the proposed merger; (11) the magnitude and duration of the COVID pandemic and its impact on the global economy and financial market conditions and Nicolet's business, results of operations and financial condition; (12) changes in consumer demand for financial services; (13) general competitive, economic, political and market conditions and fluctuations; and additional risks that are discussed in Nicolet's SEC filings. Please refer to Nicolet's 2021 Annual Report on Form 10-K, as well as its other filings with the SEC, for a more detailed discussion of risks, uncertainties and factors that could cause actual results to differ from those discussed in the forward-looking statements.
All forward-looking statements included in this communication are made as of the date hereof and are based on information available to management at that time. Except as required by law, Nicolet does not assume any obligation to update any forward-looking statement to reflect events or circumstances that occur after the date the forward-looking statements were made.
Nicolet Bankshares, Inc. | ||||||||||
Consolidated Balance Sheets (Unaudited) | ||||||||||
(In thousands, except share data) | 06/30/2022 | 03/31/2022 | 12/31/2021 | 09/30/2021 | 06/30/2021 | |||||
Assets | ||||||||||
Cash and due from banks | $ 96,189 | $ 183,705 | $ 209,349 | $ 217,608 | $ 77,634 | |||||
Interest-earning deposits | 84,828 | 212,218 | 385,943 | 1,132,997 | 714,772 | |||||
Cash and cash equivalents | 181,017 | 395,923 | 595,292 | 1,350,605 | 792,406 | |||||
Certificates of deposit in other banks | 15,502 | 19,692 | 21,920 | 24,079 | 23,387 | |||||
Securities available for sale, at fair value | 813,248 | 852,331 | 921,661 | 715,942 | 562,028 | |||||
Securities held to maturity, at amortized cost | 695,812 | 684,991 | 651,803 | 49,063 | — | |||||
Other investments | 53,269 | 54,257 | 44,008 | 38,602 | 33,440 | |||||
Loans held for sale | 5,084 | 9,764 | 6,447 | 16,784 | 11,235 | |||||
Other assets held for sale | — | — | 199,833 | 177,627 | — | |||||
Loans | 4,978,654 | 4,683,315 | 4,621,836 | 3,533,198 | 2,820,331 | |||||
Allowance for credit losses - loans | (50,655) | (49,906) | (49,672) | (38,399) | (32,561) | |||||
Loans, net | 4,927,999 | 4,633,409 | 4,572,164 | 3,494,799 | 2,787,770 | |||||
Premises and equipment, net | 96,656 | 94,275 | 94,566 | 83,513 | 61,618 | |||||
Bank owned life insurance ("BOLI") | 136,060 | 135,292 | 134,476 | 100,690 | 84,347 | |||||
Goodwill and other intangibles, net | 336,721 | 338,068 | 339,492 | 269,954 | 173,711 | |||||
Accrued interest receivable and other assets | 108,884 | 102,210 | 113,375 | 86,162 | 57,405 | |||||
Total assets | $ 7,370,252 | $ 7,320,212 | $ 7,695,037 | $ 6,407,820 | $ 4,587,347 | |||||
Liabilities and Stockholders' Equity | ||||||||||
Liabilities: | ||||||||||
Noninterest-bearing demand deposits | $ 2,045,732 | $ 1,912,995 | $ 1,975,705 | $ 1,852,119 | $ 1,324,994 | |||||
Interest-bearing deposits | 4,240,534 | 4,318,125 | 4,490,211 | 3,576,655 | 2,614,028 | |||||
Total deposits | 6,286,266 | 6,231,120 | 6,465,916 | 5,428,774 | 3,939,022 | |||||
Short-term borrowings | — | — | — | — | — | |||||
Long-term borrowings | 196,963 | 206,946 | 216,915 | 144,233 | 45,108 | |||||
Other liabilities held for sale | — | — | 51,586 | 47,496 | — | |||||
Accrued interest payable and other liabilities | 47,636 | 45,836 | 68,729 | 58,039 | 43,822 | |||||
Total liabilities | 6,530,865 | 6,483,902 | 6,803,146 | 5,678,542 | 4,027,952 | |||||
Stockholders' Equity: | ||||||||||
Common stock | 134 | 135 | 140 | 120 | 98 | |||||
Additional paid-in capital | 520,741 | 524,478 | 575,045 | 425,367 | 261,096 | |||||
Retained earnings | 361,753 | 337,768 | 313,604 | 297,299 | 289,475 | |||||
Accumulated other comprehensive income (loss) | (43,241) | (26,071) | 3,102 | 6,492 | 8,726 | |||||
Total Nicolet stockholders' equity | 839,387 | 836,310 | 891,891 | 729,278 | 559,395 | |||||
Total liabilities and stockholders' equity | $ 7,370,252 | $ 7,320,212 | $ 7,695,037 | $ 6,407,820 | $ 4,587,347 | |||||
Common shares outstanding | 13,407,375 | 13,456,741 | 13,994,079 | 11,952,438 | 9,843,141 |
Nicolet Bankshares, Inc. | ||||||||||||||
Consolidated Statements of Income (Unaudited) | ||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||
(In thousands, except per share data) | 06/30/2022 | 03/31/2022 | 12/31/2021 | 09/30/2021 | 06/30/2021 | 6/30/2022 | 6/30/2021 | |||||||
Interest income: | ||||||||||||||
Loans, including loan fees | $ 52,954 | $ 51,299 | $ 52,292 | $ 35,294 | $ 35,111 | $ 104,253 | $ 68,973 | |||||||
Taxable investment securities | 5,135 | 5,127 | 3,999 | 2,061 | 2,060 | 10,262 | 3,874 | |||||||
Tax-exempt investment securities | 647 | 675 | 575 | 517 | 520 | 1,322 | 1,065 | |||||||
Other interest income | 790 | 817 | 769 | 869 | 616 | 1,607 | 1,271 | |||||||
Total interest income | 59,526 | 57,918 | 57,635 | 38,741 | 38,307 | 117,444 | 75,183 | |||||||
Interest expense: | ||||||||||||||
Deposits | 2,410 | 2,192 | 2,649 | 2,444 | 2,433 | 4,602 | 5,355 | |||||||
Short-term borrowings | 28 | — | 1 | — | — | 28 | — | |||||||
Long-term borrowings | 2,004 | 1,931 | 1,426 | 1,113 | 303 | 3,935 | 616 | |||||||
Total interest expense | 4,442 | 4,123 | 4,076 | 3,557 | 2,736 | 8,565 | 5,971 | |||||||
Net interest income | 55,084 | 53,795 | 53,559 | 35,184 | 35,571 | 108,879 | 69,212 | |||||||
Provision for credit losses | 750 | 300 | 8,400 | 6,000 | — | 1,050 | 500 | |||||||
Net interest income after provision for credit losses | 54,334 | 53,495 | 45,159 | 29,184 | 35,571 | 107,829 | 68,712 | |||||||
Noninterest income: | ||||||||||||||
Trust services fee income | 2,004 | 2,011 | 2,050 | 2,043 | 1,906 | 4,015 | 3,681 | |||||||
Brokerage fee income | 2,988 | 3,688 | 3,205 | 3,154 | 2,991 | 6,676 | 5,784 | |||||||
Mortgage income, net | 2,205 | 3,253 | 4,518 | 4,808 | 5,599 | 5,458 | 12,829 | |||||||
Service charges on deposit accounts | 1,536 | 1,477 | 1,482 | 1,314 | 1,136 | 3,013 | 2,227 | |||||||
Card interchange income | 2,950 | 2,581 | 2,671 | 2,299 | 2,266 | 5,531 | 4,193 | |||||||
BOLI income | 768 | 933 | 722 | 572 | 559 | 1,701 | 1,086 | |||||||
Asset gains (losses), net | 1,603 | 1,313 | 465 | (1,187) | 4,192 | 2,916 | 4,903 | |||||||
Other noninterest income | 77 | 687 | 951 | 993 | 1,529 | 764 | 2,601 | |||||||
Total noninterest income | 14,131 | 15,943 | 16,064 | 13,996 | 20,178 | 30,074 | 37,304 | |||||||
Noninterest expense: | ||||||||||||||
Personnel expense | 19,681 | 21,191 | 21,491 | 16,927 | 17,084 | 40,872 | 32,200 | |||||||
Occupancy, equipment and office | 6,891 | 6,944 | 7,119 | 5,749 | 4,053 | 13,835 | 8,190 | |||||||
Business development and marketing | 2,057 | 1,831 | 1,550 | 1,654 | 1,210 | 3,888 | 2,199 | |||||||
Data processing | 3,596 | 3,387 | 3,582 | 2,939 | 2,811 | 6,983 | 5,469 | |||||||
Intangibles amortization | 1,347 | 1,424 | 1,094 | 758 | 790 | 2,771 | 1,642 | |||||||
FDIC assessments | 480 | 480 | 480 | 480 | 480 | 960 | 1,075 | |||||||
Merger-related expense | 555 | 98 | 2,202 | 2,793 | 656 | 653 | 656 | |||||||
Other noninterest expense | 1,931 | 2,195 | 1,890 | 1,761 | 3,663 | 4,126 | 5,397 | |||||||
Total noninterest expense | 36,538 | 37,550 | 39,408 | 33,061 | 30,747 | 74,088 | 56,828 | |||||||
Income before income tax expense | 31,927 | 31,888 | 21,815 | 10,119 | 25,002 | 63,815 | 49,188 | |||||||
Income tax expense | 7,942 | 7,724 | 5,510 | 2,295 | 6,718 | 15,666 | 12,665 | |||||||
Net income | $ 23,985 | $ 24,164 | $ 16,305 | $ 7,824 | $ 18,284 | $ 48,149 | $ 36,523 | |||||||
Earnings per common share: | ||||||||||||||
Basic | $ 1.79 | $ 1.77 | $ 1.29 | $ 0.75 | $ 1.85 | $ 3.56 | $ 3.67 | |||||||
Diluted | $ 1.73 | $ 1.70 | $ 1.25 | $ 0.73 | $ 1.77 | $ 3.43 | $ 3.52 | |||||||
Common shares outstanding: | ||||||||||||||
Basic weighted average | 13,402 | 13,649 | 12,626 | 10,392 | 9,902 | 13,525 | 9,949 | |||||||
Diluted weighted average | 13,852 | 14,215 | 13,049 | 10,776 | 10,326 | 14,035 | 10,365 |
Nicolet Bankshares, Inc. | ||||||||||||||
Consolidated Financial Summary (Unaudited) | ||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||
(In thousands, except share & per share data) | 06/30/2022 | 3/31/2022 | 12/31/2021 | 9/30/2021 | 6/30/2021 | 6/30/2022 | 6/30/2021 | |||||||
Selected Average Balances: | ||||||||||||||
Loans | $ 4,838,535 | $ 4,688,784 | $ 3,952,330 | $ 3,076,422 | $ 2,869,105 | $ 4,764,073 | $ 2,847,504 | |||||||
Investment securities | 1,573,027 | 1,575,624 | 1,269,562 | 611,870 | 537,632 | 1,574,319 | 533,013 | |||||||
Interest-earning assets | 6,579,644 | 6,711,191 | 5,923,581 | 4,734,768 | 4,109,394 | 6,645,054 | 4,099,553 | |||||||
Cash and cash equivalents | 217,553 | 568,472 | 839,607 | 1,100,153 | 716,873 | 392,043 | 733,383 | |||||||
Goodwill and other intangibles, net | 337,289 | 338,694 | 294,051 | 201,748 | 174,026 | 337,988 | 174,424 | |||||||
Total assets | 7,273,219 | 7,519,636 | 6,772,363 | 5,246,193 | 4,527,839 | 7,395,747 | 4,521,419 | |||||||
Deposits | 6,188,044 | 6,392,544 | 5,754,778 | 4,448,468 | 3,897,797 | 6,289,729 | 3,886,563 | |||||||
Interest-bearing liabilities | 4,425,450 | 4,683,915 | 4,006,307 | 3,093,031 | 2,684,871 | 4,553,968 | 2,724,332 | |||||||
Stockholders' equity (common) | 837,975 | 861,319 | 784,666 | 608,946 | 550,974 | 849,582 | 547,775 | |||||||
Selected Ratios: (1) | ||||||||||||||
Book value per common share | $ 62.61 | $ 62.15 | $ 63.73 | $ 61.01 | $ 56.83 | $ 62.61 | $ 56.83 | |||||||
Tangible book value per common share (2) | $ 37.49 | $ 37.03 | $ 39.47 | $ 38.43 | $ 39.18 | $ 37.49 | $ 39.18 | |||||||
Return on average assets | 1.32 % | 1.30 % | 0.96 % | 0.59 % | 1.62 % | 1.31 % | 1.63 % | |||||||
Return on average common equity | 11.48 | 11.38 | 8.24 | 5.10 | 13.31 | 11.43 | 13.45 | |||||||
Return on average tangible common equity (2) | 19.21 | 18.75 | 13.19 | 7.62 | 19.46 | 18.98 | 19.73 | |||||||
Average equity to average assets | 11.52 | 11.45 | 11.59 | 11.61 | 12.17 | 11.49 | 12.12 | |||||||
Stockholders' equity to assets | 11.39 | 11.42 | 11.59 | 11.38 | 12.19 | 11.39 | 12.19 | |||||||
Tangible common equity to tangible assets (2) | 7.15 | 7.14 | 7.51 | 7.48 | 8.74 | 7.15 | 8.74 | |||||||
Net interest margin | 3.34 | 3.23 | 3.57 | 2.94 | 3.45 | 3.29 | 3.38 | |||||||
Efficiency ratio | 53.74 | 54.56 | 56.73 | 65.32 | 59.37 | 54.16 | 55.66 | |||||||
Effective tax rate | 24.88 | 24.22 | 25.26 | 22.68 | 26.87 | 24.55 | 25.75 | |||||||
Selected Asset Quality Information: | ||||||||||||||
Nonaccrual loans | $ 36,580 | $ 39,670 | $ 44,154 | $ 16,715 | $ 6,932 | $ 36,580 | $ 6,932 | |||||||
Other real estate owned - closed branches | 4,378 | 9,019 | 10,307 | 2,895 | 2,895 | 4,378 | 2,895 | |||||||
Other real estate owned | 628 | 797 | 1,648 | 1,574 | — | 628 | — | |||||||
Nonperforming assets | $ 41,586 | $ 49,486 | $ 56,109 | $ 21,184 | $ 9,827 | $ 41,586 | $ 9,827 | |||||||
Net loan charge-offs (recoveries) | $ (149) | $ 66 | $ (10) | $ 58 | $ 65 | $ (83) | $ 112 | |||||||
Allowance for credit losses-loans to loans | 1.02 % | 1.07 % | 1.07 % | 1.09 % | 1.15 % | 1.02 % | 1.15 % | |||||||
Net loan charge-offs to average loans (1) | (0.01) | 0.01 | 0.00 | 0.01 | 0.01 | 0.00 | 0.01 | |||||||
Nonperforming loans to total loans | 0.73 | 0.85 | 0.96 | 0.47 | 0.25 | 0.73 | 0.25 | |||||||
Nonperforming assets to total assets | 0.56 | 0.68 | 0.73 | 0.33 | 0.21 | 0.56 | 0.21 | |||||||
Stock Repurchase Information: | ||||||||||||||
Common stock repurchased (dollars) (3) | $ 6,277 | $ 54,420 | $ 27,784 | $ 17,125 | $ 12,453 | $ 60,697 | $ 16,555 | |||||||
Common stock repurchased (full shares) (3) | 67,949 | 593,713 | 345,166 | 233,594 | 157,418 | 661,662 | 214,304 |
(1) | Income statement-related ratios for partial-year periods are annualized. |
(2) | See Reconciliation of Non-GAAP Financial Measures below for a reconciliation of these financial measures. |
(3) | Reflects common stock repurchased under board of director authorizations for the common stock repurchase program. |
Nicolet Bankshares, Inc. | |||||||||||||||||||
Net Interest Income and Net Interest Margin Analysis (Unaudited) | |||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||
June 30, 2022 | March 31, 2022 | June 30, 2021 | |||||||||||||||||
Average | Average | Average | Average | Average | Average | ||||||||||||||
(In thousands) | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||
ASSETS | |||||||||||||||||||
PPP loans | $ 5,333 | $ 13 | 0.93 % | $ 13,503 | $ 1,377 | 40.79 % | $ 205,639 | $ 4,862 | 9.35 % | ||||||||||
All other loans | 4,833,202 | 52,971 | 4.34 % | 4,675,281 | 49,957 | 4.27 % | 2,663,466 | 30,267 | 4.50 % | ||||||||||
Total loans (1) (2) | 4,838,535 | 52,984 | 4.34 % | 4,688,784 | 51,334 | 4.38 % | 2,869,105 | 35,129 | 4.85 % | ||||||||||
Investment securities (2) | 1,573,027 | 6,126 | 1.56 % | 1,575,624 | 6,158 | 1.57 % | 537,632 | 2,794 | 2.08 % | ||||||||||
Other interest-earning assets | 168,082 | 790 | 1.87 % | 446,783 | 817 | 0.73 % | 702,657 | 616 | 0.35 % | ||||||||||
Total interest-earning assets | 6,579,644 | $ 59,900 | 3.61 % | 6,711,191 | $ 58,309 | 3.48 % | 4,109,394 | $ 38,539 | 3.72 % | ||||||||||
Other assets, net | 693,575 | 808,445 | 418,445 | ||||||||||||||||
Total assets | $ 7,273,219 | $ 7,519,636 | $ 4,527,839 | ||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||
Interest-bearing core deposits | $ 3,787,103 | $ 1,857 | 0.20 % | $ 4,009,898 | $ 1,637 | 0.17 % | $ 2,387,730 | $ 1,523 | 0.26 % | ||||||||||
Brokered deposits | 423,372 | 553 | 0.52 % | 459,460 | 555 | 0.49 % | 253,816 | 910 | 1.44 % | ||||||||||
Total interest-bearing deposits | 4,210,475 | 2,410 | 0.23 % | 4,469,358 | 2,192 | 0.20 % | 2,641,546 | 2,433 | 0.37 % | ||||||||||
Wholesale funding | 214,975 | 2,032 | 3.77 % | 214,557 | 1,931 | 3.60 % | 43,325 | 303 | 2.76 % | ||||||||||
Total interest-bearing liabilities | 4,425,450 | $ 4,442 | 0.40 % | 4,683,915 | $ 4,123 | 0.35 % | 2,684,871 | $ 2,736 | 0.41 % | ||||||||||
Noninterest-bearing demand deposits | 1,977,569 | 1,923,186 | 1,256,251 | ||||||||||||||||
Other liabilities | 32,225 | 51,216 | 35,743 | ||||||||||||||||
Stockholders' equity | 837,975 | 861,319 | 550,974 | ||||||||||||||||
Total liabilities and stockholders' equity | $ 7,273,219 | $ 7,519,636 | $ 4,527,839 | ||||||||||||||||
Net interest income and rate spread | $ 55,458 | 3.21 % | $ 54,186 | 3.13 % | $ 35,803 | 3.31 % | |||||||||||||
Net interest margin | 3.34 % | 3.23 % | 3.45 % | ||||||||||||||||
For the Six Months Ended | |||||||||||||||||||
June 30, 2022 | June 30, 2021 | ||||||||||||||||||
Average | Average | Average | Average | ||||||||||||||||
(In thousands) | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||
ASSETS | |||||||||||||||||||
PPP loans | $ 9,395 | $ 1,390 | 29.41 % | $ 206,066 | $ 8,813 | 8.51 % | |||||||||||||
All other loans | 4,754,678 | 102,928 | 4.31 % | 2,641,438 | 60,200 | 4.54 % | |||||||||||||
Total loans (1) (2) | 4,764,073 | 104,318 | 4.36 % | 2,847,504 | 69,013 | 4.83 % | |||||||||||||
Investment securities (2) | 1,574,319 | 12,284 | 1.56 % | 533,013 | 5,383 | 2.02 % | |||||||||||||
Other interest-earning assets | 306,662 | 1,607 | 1.05 % | 719,036 | 1,271 | 0.35 % | |||||||||||||
Total interest-earning assets | 6,645,054 | $ 118,209 | 3.54 % | 4,099,553 | $ 75,667 | 3.68 % | |||||||||||||
Other assets, net | 750,693 | 421,866 | |||||||||||||||||
Total assets | $ 7,395,747 | $ 4,521,419 | |||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||
Interest-bearing core deposits | $ 3,897,885 | $ 3,494 | 0.18 % | $ 2,391,816 | $ 3,364 | 0.28 % | |||||||||||||
Brokered deposits | 441,316 | 1,108 | 0.51 % | 285,029 | 1,991 | 1.41 % | |||||||||||||
Total interest-bearing deposits | 4,339,201 | 4,602 | 0.21 % | 2,676,845 | 5,355 | 0.40 % | |||||||||||||
Wholessale funding | 214,767 | 3,963 | 3.69 % | 47,487 | 616 | 2.58 % | |||||||||||||
Total interest-bearing liabilities | 4,553,968 | $ 8,565 | 0.38 % | 2,724,332 | $ 5,971 | 0.44 % | |||||||||||||
Noninterest-bearing demand deposits | 1,950,528 | 1,209,718 | |||||||||||||||||
Other liabilities | 41,669 | 39,594 | |||||||||||||||||
Stockholders' equity | 849,582 | 547,775 | |||||||||||||||||
Total liabilities and stockholders' equity | $ 7,395,747 | $ 4,521,419 | |||||||||||||||||
Net interest income and rate spread | $ 109,644 | 3.16 % | $ 69,696 | 3.24 % | |||||||||||||||
Net interest margin | 3.29 % | 3.38 % |
(1) | Nonaccrual loans and loans held for sale are included in the daily average loan balances outstanding. |
(2) | The yield on tax-exempt loans and tax-exempt investment securities is computed on a tax-equivalent basis using a federal tax rate of 21%, and adjusted for the disallowance of interest expense. |
Nicolet Bankshares, Inc. | ||||||||||||||
Reconciliation of Non-GAAP Financial Measures (Unaudited) | ||||||||||||||
At or for the Three Months Ended | At or for the Six Months Ended | |||||||||||||
(In thousands, except per share data) | 06/30/2022 | 3/31/2022 | 12/31/2021 | 9/30/2021 | 6/30/2021 | 6/30/2022 | 6/30/2021 | |||||||
Adjusted net income reconciliation: (1) | ||||||||||||||
Net income (GAAP) | $ 23,985 | $ 24,164 | $ 16,305 | $ 7,824 | $ 18,284 | $ 48,149 | $ 36,523 | |||||||
Adjustments: | ||||||||||||||
Provision expense related to merger | — | — | 8,400 | 6,000 | — | — | — | |||||||
Assets (gains) losses, net | (1,603) | (1,313) | (465) | 1,187 | (4,192) | (2,916) | (4,903) | |||||||
Merger-related expense | 555 | 98 | 2,202 | 2,793 | 656 | 653 | 656 | |||||||
Branch closure expense | — | — | — | 944 | — | — | — | |||||||
Adjustments subtotal | (1,048) | (1,215) | 10,137 | 10,924 | (3,536) | (2,263) | (4,247) | |||||||
Tax on Adjustments (25%) | (262) | (304) | 2,534 | 2,731 | (884) | (566) | (1,062) | |||||||
Adjustments, net of tax | (786) | (911) | 7,603 | 8,193 | (2,652) | (1,697) | (3,185) | |||||||
Adjusted net income (Non-GAAP) | $ 23,199 | $ 23,253 | $ 23,908 | $ 16,017 | $ 15,632 | $ 46,452 | $ 33,338 | |||||||
Common shares outstanding: | ||||||||||||||
Weighted average diluted common shares | 13,852 | 14,215 | 13,049 | 10,776 | 10,326 | 14,035 | 10,365 | |||||||
Diluted earnings per common share: | ||||||||||||||
Diluted earnings per common share (GAAP) | $ 1.73 | $ 1.70 | $ 1.25 | $ 0.73 | $ 1.77 | $ 3.43 | $ 3.52 | |||||||
Adjusted Diluted earnings per common share (Non-GAAP) | $ 1.67 | $ 1.64 | $ 1.83 | $ 1.49 | $ 1.51 | $ 3.31 | $ 3.22 | |||||||
Tangible assets: (2) | ||||||||||||||
Total assets | $ 7,370,252 | $ 7,320,212 | $ 7,695,037 | $ 6,407,820 | $ 4,587,347 | |||||||||
Goodwill and other intangibles, net | 336,721 | 338,068 | 339,492 | 269,954 | 173,711 | |||||||||
Tangible assets | $ 7,033,531 | $ 6,982,144 | $ 7,355,545 | $ 6,137,866 | $ 4,413,636 | |||||||||
Tangible common equity: (2) | ||||||||||||||
Stockholders' equity | $ 839,387 | $ 836,310 | $ 891,891 | $ 729,278 | $ 559,395 | |||||||||
Goodwill and other intangibles, net | 336,721 | 338,068 | 339,492 | 269,954 | 173,711 | |||||||||
Tangible common equity | $ 502,666 | $ 498,242 | $ 552,399 | $ 459,324 | $ 385,684 | |||||||||
Tangible average common equity: (2) | ||||||||||||||
Average stockholders' equity (common) | $ 837,975 | $ 861,319 | $ 784,666 | $ 608,946 | $ 550,974 | $ 849,582 | $ 547,775 | |||||||
Average goodwill and other intangibles, net | 337,289 | 338,694 | 294,051 | 201,748 | 174,026 | 337,988 | 174,424 | |||||||
Average tangible common equity | $ 500,686 | $ 522,625 | $ 490,615 | $ 407,198 | $ 376,948 | $ 511,594 | $ 373,351 |
(1) | The adjusted net income measure and related reconciliation provide information useful to investors in understanding the operating performance and trends of Nicolet and also to aid investors in the comparison of Nicolet's financial performance to the financial performance of peer banks. |
(2) | The ratios of tangible book value per common share, return on average tangible common equity, and tangible common equity to tangible assets exclude goodwill and other intangibles, net. These financial ratios have been included as they are considered to be critical metrics with which to analyze and evaluate financial condition and capital strength. |
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SOURCE Nicolet Bankshares, Inc.
Government
Low Iron Levels In Blood Could Trigger Long COVID: Study
Low Iron Levels In Blood Could Trigger Long COVID: Study
Authored by Amie Dahnke via The Epoch Times (emphasis ours),
People with inadequate…
Authored by Amie Dahnke via The Epoch Times (emphasis ours),
People with inadequate iron levels in their blood due to a COVID-19 infection could be at greater risk of long COVID.
A new study indicates that problems with iron levels in the bloodstream likely trigger chronic inflammation and other conditions associated with the post-COVID phenomenon. The findings, published on March 1 in Nature Immunology, could offer new ways to treat or prevent the condition.
Long COVID Patients Have Low Iron Levels
Researchers at the University of Cambridge pinpointed low iron as a potential link to long-COVID symptoms thanks to a study they initiated shortly after the start of the pandemic. They recruited people who tested positive for the virus to provide blood samples for analysis over a year, which allowed the researchers to look for post-infection changes in the blood. The researchers looked at 214 samples and found that 45 percent of patients reported symptoms of long COVID that lasted between three and 10 months.
In analyzing the blood samples, the research team noticed that people experiencing long COVID had low iron levels, contributing to anemia and low red blood cell production, just two weeks after they were diagnosed with COVID-19. This was true for patients regardless of age, sex, or the initial severity of their infection.
According to one of the study co-authors, the removal of iron from the bloodstream is a natural process and defense mechanism of the body.
But it can jeopardize a person’s recovery.
“When the body has an infection, it responds by removing iron from the bloodstream. This protects us from potentially lethal bacteria that capture the iron in the bloodstream and grow rapidly. It’s an evolutionary response that redistributes iron in the body, and the blood plasma becomes an iron desert,” University of Oxford professor Hal Drakesmith said in a press release. “However, if this goes on for a long time, there is less iron for red blood cells, so oxygen is transported less efficiently affecting metabolism and energy production, and for white blood cells, which need iron to work properly. The protective mechanism ends up becoming a problem.”
The research team believes that consistently low iron levels could explain why individuals with long COVID continue to experience fatigue and difficulty exercising. As such, the researchers suggested iron supplementation to help regulate and prevent the often debilitating symptoms associated with long COVID.
“It isn’t necessarily the case that individuals don’t have enough iron in their body, it’s just that it’s trapped in the wrong place,” Aimee Hanson, a postdoctoral researcher at the University of Cambridge who worked on the study, said in the press release. “What we need is a way to remobilize the iron and pull it back into the bloodstream, where it becomes more useful to the red blood cells.”
The research team pointed out that iron supplementation isn’t always straightforward. Achieving the right level of iron varies from person to person. Too much iron can cause stomach issues, ranging from constipation, nausea, and abdominal pain to gastritis and gastric lesions.
1 in 5 Still Affected by Long COVID
COVID-19 has affected nearly 40 percent of Americans, with one in five of those still suffering from symptoms of long COVID, according to the U.S. Centers for Disease Control and Prevention (CDC). Long COVID is marked by health issues that continue at least four weeks after an individual was initially diagnosed with COVID-19. Symptoms can last for days, weeks, months, or years and may include fatigue, cough or chest pain, headache, brain fog, depression or anxiety, digestive issues, and joint or muscle pain.
Uncategorized
February Employment Situation
By Paul Gomme and Peter Rupert The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000…
By Paul Gomme and Peter Rupert
The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000 average over the previous 12 months. The payroll data for January and December were revised down by a total of 167,000. The private sector added 223,000 new jobs, the largest gain since May of last year.
Temporary help services employment continues a steep decline after a sharp post-pandemic rise.
Average hours of work increased from 34.2 to 34.3. The increase, along with the 223,000 private employment increase led to a hefty increase in total hours of 5.6% at an annualized rate, also the largest increase since May of last year.
The establishment report, once again, beat “expectations;” the WSJ survey of economists was 198,000. Other than the downward revisions, mentioned above, another bit of negative news was a smallish increase in wage growth, from $34.52 to $34.57.
The household survey shows that the labor force increased 150,000, a drop in employment of 184,000 and an increase in the number of unemployed persons of 334,000. The labor force participation rate held steady at 62.5, the employment to population ratio decreased from 60.2 to 60.1 and the unemployment rate increased from 3.66 to 3.86. Remember that the unemployment rate is the number of unemployed relative to the labor force (the number employed plus the number unemployed). Consequently, the unemployment rate can go up if the number of unemployed rises holding fixed the labor force, or if the labor force shrinks holding the number unemployed unchanged. An increase in the unemployment rate is not necessarily a bad thing: it may reflect a strong labor market drawing “marginally attached” individuals from outside the labor force. Indeed, there was a 96,000 decline in those workers.
Earlier in the week, the BLS announced JOLTS (Job Openings and Labor Turnover Survey) data for January. There isn’t much to report here as the job openings changed little at 8.9 million, the number of hires and total separations were little changed at 5.7 million and 5.3 million, respectively.
As has been the case for the last couple of years, the number of job openings remains higher than the number of unemployed persons.
Also earlier in the week the BLS announced that productivity increased 3.2% in the 4th quarter with output rising 3.5% and hours of work rising 0.3%.
The bottom line is that the labor market continues its surprisingly (to some) strong performance, once again proving stronger than many had expected. This strength makes it difficult to justify any interest rate cuts soon, particularly given the recent inflation spike.
unemployment pandemic unemploymentSpread & Containment
Another beloved brewery files Chapter 11 bankruptcy
The beer industry has been devastated by covid, changing tastes, and maybe fallout from the Bud Light scandal.
Before the covid pandemic, craft beer was having a moment. Most cities had multiple breweries and taprooms with some having so many that people put together the brewery version of a pub crawl.
It was a period where beer snobbery ruled the day and it was not uncommon to hear bar patrons discuss the makeup of the beer the beer they were drinking. This boom period always seemed destined for failure, or at least a retraction as many markets seemed to have more craft breweries than they could support.
Related: Fast-food chain closes more stores after Chapter 11 bankruptcy
The pandemic, however, hastened that downfall. Many of these local and regional craft breweries counted on in-person sales to drive their business.
And while many had local and regional distribution, selling through a third party comes with much lower margins. Direct sales drove their business and the pandemic forced many breweries to shut down their taprooms during the period where social distancing rules were in effect.
During those months the breweries still had rent and employees to pay while little money was coming in. That led to a number of popular beermakers including San Francisco's nationally-known Anchor Brewing as well as many regional favorites including Chicago’s Metropolitan Brewing, New Jersey’s Flying Fish, Denver’s Joyride Brewing, Tampa’s Zydeco Brew Werks, and Cleveland’s Terrestrial Brewing filing bankruptcy.
Some of these brands hope to survive, but others, including Anchor Brewing, fell into Chapter 7 liquidation. Now, another domino has fallen as a popular regional brewery has filed for Chapter 11 bankruptcy protection.
Covid is not the only reason for brewery bankruptcies
While covid deserves some of the blame for brewery failures, it's not the only reason why so many have filed for bankruptcy protection. Overall beer sales have fallen driven by younger people embracing non-alcoholic cocktails, and the rise in popularity of non-beer alcoholic offerings,
Beer sales have fallen to their lowest levels since 1999 and some industry analysts
"Sales declined by more than 5% in the first nine months of the year, dragged down not only by the backlash and boycotts against Anheuser-Busch-owned Bud Light but the changing habits of younger drinkers," according to data from Beer Marketer’s Insights published by the New York Post.
Bud Light parent Anheuser Busch InBev (BUD) faced massive boycotts after it partnered with transgender social media influencer Dylan Mulvaney. It was a very small partnership but it led to a right-wing backlash spurred on by Kid Rock, who posted a video on social media where he chastised the company before shooting up cases of Bud Light with an automatic weapon.
Another brewery files Chapter 11 bankruptcy
Gizmo Brew Works, which does business under the name Roth Brewing Company LLC, filed for Chapter 11 bankruptcy protection on March 8. In its filing, the company checked the box that indicates that its debts are less than $7.5 million and it chooses to proceed under Subchapter V of Chapter 11.
"Both small business and subchapter V cases are treated differently than a traditional chapter 11 case primarily due to accelerated deadlines and the speed with which the plan is confirmed," USCourts.gov explained.
Roth Brewing/Gizmo Brew Works shared that it has 50-99 creditors and assets $100,000 and $500,000. The filing noted that the company does expect to have funds available for unsecured creditors.
The popular brewery operates three taprooms and sells its beer to go at those locations.
"Join us at Gizmo Brew Works Craft Brewery and Taprooms located in Raleigh, Durham, and Chapel Hill, North Carolina. Find us for entertainment, live music, food trucks, beer specials, and most importantly, great-tasting craft beer by Gizmo Brew Works," the company shared on its website.
The company estimates that it has between $1 and $10 million in liabilities (a broad range as the bankruptcy form does not provide a space to be more specific).
Gizmo Brew Works/Roth Brewing did not share a reorganization or funding plan in its bankruptcy filing. An email request for comment sent through the company's contact page was not immediately returned.
bankruptcy pandemic social distancing
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