Nicolet Bankshares, Inc. Announces Second Quarter 2020 Earnings

GREEN BAY, Wis., July 21, 2020 /PRNewswire/ -- Nicolet Bankshares, Inc. NCBS ("Nicolet") announced second quarter 2020 net income of $13.5 million and earnings per diluted common share of $1.28, compared to $10.6 million and $0.98 for first quarter 2020, and $18.5 million and $1.91 for second quarter 2019, respectively.  Annualized quarterly return on average assets was 1.26%, 1.19% and 2.46%, for second quarter 2020, first quarter 2020 and second quarter 2019, respectively.

Net income for the six months ended June 30, 2020 was $24.0 million and earnings per common share was $2.25, compared to net income of $28.8 million and earnings per diluted common share of $2.97 for the first half of 2019.  Annualized return on average assets was 1.23% and 1.91% for the first six months of 2020 and 2019, respectively.

Net income for second quarter 2019 included $5.4 million from two nonrecurring items, a $7.4 million after-tax gain on the partial sale of its equity interest in a data processing company, and $2.75 million ($2.0 million after-tax) in personnel expense for retirement-related compensation declared. Therefore, excluding the $5.4 million from the 2019 periods, net income would be $13.1 million and $23.4 million for the three and six months ended June 30, 2019, or a $0.4 million (3%) increase in net income between the second quarter periods and a $0.6 million (3%) increase between the six month periods. 

"Our second quarter earnings were strong, led by record secondary mortgage revenues, and our balance sheet has ballooned to over $4.5 billion in assets, largely from the SBA's Paycheck Protection Program ("PPP") loans and high cash levels," said Bob Atwell, Chairman and CEO of Nicolet. "While long-term visibility remains foggy, necessitating caution, we feel better than we did in April about controlling what we can control.  We believe even more today that our strategy of shared success for customers, employees and shareholders will be the cornerstone of our long term success as we move forward and beyond current events."

"Amid the unusual dynamics brought on by various responses to the pandemic and recession, we executed on our core business and took care of our customers during a very unsettling yet busy period," Atwell said. 

Nicolet originated $340 million of PPP loans this quarter for nearly 2,550 business customers, which supported approximately 40,000 employees in those underlying businesses. We created a micro-grant program, providing $1.25 million of funds directly to 325 customers who otherwise qualified for a small PPP loan of less than $5,000, no strings attached, as a more cost beneficial, timely and impactful result for the customer and the bank. It represented a direct give back of 10% of the PPP fees subsequently earned. Since the pandemic started, payment modifications were made on over 900 loans totaling $447 million, most of which were commercial. For retail customers purchasing new homes or refinancing, we processed a record of nearly 1,500 mortgage loans this quarter.  For two months we provided service charge waivers to small businesses and auto-qualified retail customers for our popular 3% checking product. Our financial advisors, lenders and bankers counseled countless clients through a period of dramatic volatility and uncertain futures.

"I am very proud of the teamwork exhibited by our employees to process this extraordinary loan volume, including back office and branch personnel redirected into the work flow," said Mike Daniels, President and CEO of Nicolet National Bank.  "We conducted this significant business activity, while remaining diligent on keeping customers and employees safe under less than usual conditions."

"Focusing on safety, our early pandemic response included lobby-by-appointment-only periods at all but 11 branches that were temporarily closed.  Senior management and back office departments were separated to address succession and redundancy concerns, and many employees worked remotely from home. Also, we aggressively procured masks and other protective supplies," Daniels said. Costs associated with on-site bonuses, testing, and protective supplies totaled $0.6 million for second quarter 2020.

"During the temporary branch closure period, we helped customers find good alternatives to visiting these locations, including directing them to nearby locations, remote deposit and mobile banking. Our customers responded well to the change, which helped confirm that banking with Nicolet matters more to our customers than the physical location of the office," said Daniels. "Therefore, we decided to permanently close seven (18%) of our 39 branches (one each in Oshkosh, Appleton, Suamico, Brussels, Kewaunee, Fish Creek, and Ellison Bay), which also reduced headcount by 56 employees (nearly 10% of our workforce)."  As a result, $1.7 million of one-time costs were recorded during second quarter related to lease terminations, severance, accelerated depreciation and write-offs.  Annual savings, once the underlying properties are sold, are estimated to be $3 million, primarily in personnel costs. 

At the start of the pandemic, Nicolet employed approximately 600 people and at peak points had 34% working remotely, 18% paid but not working due to risk concerns or location closure, and the remainder of employees working on site.  At June 30, 2020, Nicolet employed 544 people, with the decline primarily due to the branch closures and efficiencies.

"Selected branch closings are forward-looking actions that support our people-centered strategy in a rapidly automating environment," Atwell stated.  "We will continue to focus on configuring the company to serve the customer's needs and experience more efficiently and effectively. "

Balance Sheet Review

At June 30, 2020, period end assets were $4.5 billion, an increase of $809 million (22%) over March 31. The quarter-over-quarter increase in assets was predominantly due to higher cash and cash equivalents (up $581 million to $823 million, commensurate with the increase in total deposits) and loans (up $214 million or 8% to $2.8 billion at June 30). 

Total deposits of $3.5 billion at June 30, 2020, increased $514 million (17%) over March 31, a large contributor to the heavy cash position this quarter.  This unusually large increase in deposits was influenced by the unique circumstances including, the government stimulus payments and pandemic stay-at-home orders, which reduced spending and increased liquidity of consumers and businesses, and by PPP loan proceeds retained on deposit by corporate borrowers. Noninterest-bearing demand deposits accounted for the largest increase since March 31 (up $296 million or 37% to $1.1 billion at June 30, primarily due to the deposited PPP loan proceeds).  Transaction accounts combined (i.e. savings, money markets and interest-bearing checking) increased $192 million (13%) to $1.7 billion at June 30, and brokered deposits grew $65 million (23%) to $346 million, in part to reduce other wholesale funding, while core time deposits declined $38 million (9%) to $378 million, largely moving into transaction accounts.

Since March 31, loans increased $329 million from the carrying value of PPP loans, and declined $115 million (4%) in the remaining loan portfolio (led by commercial lines of credit which were down $111 million), as many commercial customers funded their current needs through the PPP and exercised caution in this volatile and uncertain business climate. 

The PPP loans provided low 1% coupon and potentially forgivable funds to small businesses, and are fully guaranteed by the SBA warranting no credit loss provisioning. Nicolet earned on average a 3.53% fee or $12.2 million from the SBA to process and service the PPP loans. This aggregate fee was deferred and will be accreted ratably into interest income over the life of the PPP loan pool, which may accelerate if loans payoff sooner.  Nicolet accreted $1.1 million into interest income for the second quarter of 2020.  Using the PPP loans as collateral, Nicolet funded the PPP loans through the Federal Reserve's Paycheck Protection Program Liquidity Facility ("PPPLF"), which cost 0.35% and totaled $336 million at June 30, 2020. PPP loans funded by PPPLF are given a zero risk-weight in regulatory risk-based capital ratios and are excluded from average assets in the regulatory leverage ratio.

Total capital was $532 million at June 30, 2020, an increase of $21 million since March 31, 2020, mostly due to solid earnings and positive net fair value investment changes. The Company's share repurchase program was temporarily suspended effective March 21, 2020, in response to the uncertain future economic conditions due to the pandemic. Management intends to resume repurchases in the third quarter given current conditions, market opportunities and financial performance of the bank. At June 30, 2020, there remained $7.1 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. 

Asset Quality

"As the first quarter ended, we significantly increased the provision for loan losses to $3 million, with nearly no forward visibility in the wake of an emerging pandemic and recession," Atwell said.  "With better but still limited forward visibility and no material degradation of our current asset quality metrics, we provided an additional $3 million in the second quarter.  We feel this provides appropriate consideration for the continued uncertainty about the extent and duration of current credit stress on our customers. That said, we are encouraged by the liquidity of, operating performance of and precautions taken by our borrowers to date, which may indicate that less aggressive provisioning may be warranted in the future," commented Atwell.

Since the pandemic started, over 900 loans (88% commercial and 12% retail) were provided payment modifications on loans totaling $447 million (67% interest only and 33% full payment deferrals) generally for 90 to 120 days, consistent with guidelines of the CARES Act. As of July 9, 24% of these have returned to normal payment structures, 11% received a secondary extension to interest only for up to 90 more days (after bringing accrued interest current), and the remainder should end their initial modification periods by early September.

Nonperforming assets decreased to $13 million at June 30, to represent 0.29% of total assets compared to 0.42% at March 31. Since the prior quarter, the allowance for credit losses-loans increased to $29 million, due to the $3.0 million provision for credit losses recognized against negligible charge-offs during the quarter of $0.1 million or 0.01% of average loans, annualized.  At June 30, 2020, the allowance represented 1.03% of total loans, and represented 1.17% of total loans excluding the net carrying value of PPP loans.

Income Statement Review

Net income for second quarter 2020 was $13.5 million, $2.9 million or 28% stronger than first quarter 2020, led by stellar mortgage income, partly offset by elevated expense. 

While second quarter 2020 net interest income of $31.5 million was minimally different from first quarter 2020 (up $0.2 million or less than 1%), there were dramatic underlying changes, predominantly the inclusion of PPP loans and PPPLF, and significantly higher average cash balances earning significantly less given the timing of the 150bps decline in the Federal funds rate in mid-March.  On a linked quarter basis, average interest earning assets increased $750 million (24%), due to growth in average loans (up $239 million net, with PPP loans up $265 million offsetting a decline in remaining loans), investments (up $36 million) and other interest earning assets which are predominantly cash (up $475 million, to represent 15% of interest-earning assets for second quarter 2020 versus 4% for first quarter 2020).  Average interest bearing liabilities increased $523 million (24%) on a linked quarter basis, comprised of $264 million higher interest-bearing deposits (with brokered deposits up $185 million on average given the $200 million liquidity build executed in late March to early April at an approximately 1% net negative spread, and generally rising core deposits), $237 million of new PPPLF funding, and $21 million higher other interest-bearing liabilities.  Further adding to the heavy cash position and net free funds was average noninterest-bearing demand deposits, totaling $1.0 billion for second quarter compared to $787 million in first quarter 2020, mainly due to deposited PPP loan proceeds.

The net interest margin for second quarter 2020 was 3.21%, down from 3.94% for first quarter 2020, heavily influenced by the changing balance sheet mix, especially to low-earning cash. The yield on earning assets of 3.76% declined 90bps from first quarter 2020, mostly due to the dramatic increase in cash that generally earns 10 bps since March 2020, as well as the low rate on the PPP loans.  The yield on loans excluding PPP loans was 4.96%, 23bps lower than first quarter 2020 mostly attributable to the impact of the lower rate environment on variable loans partly offset by floors and the increased mix of fixed rate loans which dampened the impact of the rate decrease. The cost of funds of 0.79% declined 25bps during the same period, as both deposit and other funding costs were adjusted down in the lower rate environment, as well as the inclusion of PPPLF funds costing 35bps. 

Second quarter noninterest income of $17.5 million increased $7.9 million (82%) compared to first quarter 2020, driven by strong secondary mortgage income.  Net mortgage income increased $7.6 million, from higher sale gains and capitalized gains combined (up $6.2 million or 205%, commensurate with the increase in volumes sold into the secondary market, aided by the current refinance boom), and a $1.4 million favorable swing in the marks to fair value the mortgage servicing asset and mortgage derivatives combined. Other noninterest income increased $1.0 million over first quarter largely due to market recoveries since March on the value of nonqualified deferred compensation plan assets.  Service charges on deposit accounts decreased $0.4 million or 34%  between the sequential quarters, mainly as we waived certain fees to provide economic relief to our customers in the second quarter.

Noninterest expense of $27.8 million increased $4.0 million (17%) from first quarter 2020. Personnel increased $1.2 million largely due to nonqualified deferred compensation expense, which increased $1.2 million related to the plan asset recoveries noted above, $0.2 million higher overtime to process mortgage and PPP volume, $0.4 million of on-site bonus pay, and $0.2 million of severance costs related to the branch closures, offset by $0.8 million of reduced personnel fringes and incentive accruals between the sequential quarters.  All non-personnel expenses combined increased $2.8 million from first quarter 2020, as second quarter 2020 included expense of $1.5 million related to the branch closures (mostly lease termination charges), $1.25 million for the micro-grant program, and $0.5 million to terminate the Commerce Financial Holdings, Inc. ("Commerce") merger agreement.

Acquisitions Update

On May 18, 2020, Nicolet and Commerce announced a mutual agreement to terminate their merger agreement dated February 17, 2020. Nicolet paid Commerce $0.5 million and surrendered its $0.1 million of Commerce common stock.

Nicolet's pending acquisition of Advantage Community Bancshares, Inc. ("Advantage") has received all necessary regulatory approvals, as well as approval from Advantage shareholders.  The merger is expected to close August 21, and Advantage's four branches in Dorchester, Edgar, Mosinee and Wausau will open as Nicolet branches on August 24.  Due to the small size of the transaction, terms of the all-cash deal were not disclosed.  At June 30, 2020, Advantage had total assets of $160 million, loans of $89 million, deposits of $135 million, and equity of $21 million

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 Private Securities Litigation Reform Act of 1995, which Congress passed in an effort to encourage companies to provide information about their anticipated future financial performance. This act protects a company from unwarranted litigation if actual results are different from management expectations. This report reflects the current views and estimates of future economic circumstances, industry conditions, company performance, and financial results of the management of Nicolet. These forward-looking statements are subject to a number of factors and uncertainties which could cause Nicolet's actual results and experience to differ from the anticipated results and expectations expressed in such forward-looking statements, and such differences may be material. Forward-looking statements speak only as of the date they are made and Nicolet does not assume any duty to update forward-looking statements. There are a number of factors that could cause our actual results to differ materially from those projected in such forward-looking statements.

In addition to factors previously disclosed in Nicolet's reports filed with the SEC and those identified elsewhere in this news release, these forward-looking statements include, but are not limited to, statements about (i) Nicolet's expected COVID-19 pandemic response and how its operations and financial condition may change as a result of the COVID-19 pandemic; (ii) the expected impact on the broader economy with regard to the effects of the COVID-19 pandemic and the government's response to the COVID-19 pandemic; and (iii) Nicolet's plans, objectives, expectations and intentions and other statements contained in this report that are not historical facts.  Other statements identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "targets," "projects" or words of similar meaning generally are intended to identify forward-looking statements. These statements are based upon the current beliefs and expectations of Nicolet's management and are inherently subject to significant business, economic and competitive risks and uncertainties, many of which are beyond their control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ from those indicated or implied in the forward-looking statements and such differences may be material.

The COVID-19 pandemic is adversely affecting us, our customers, counterparties, employees, and third-party service providers, and the ultimate extent of the impacts on our business, financial position, results of operations, liquidity, and prospects is uncertain. Continued deterioration in general business and economic conditions or turbulence in domestic financial markets could adversely affect Nicolet's revenues and the values of its assets and liabilities, lead to a tightening of credit, and increase stock price volatility. In addition, the COVID-19 pandemic may result in changes to statutes, regulations, or regulatory policies or practices resulting from could affect Nicolet in substantial and unpredictable ways.

Nicolet Bankshares, Inc.





















Consolidated Financial Summary (Unaudited)

























At or for the Three Months Ended



At or for the Six Months Ended

(In thousands, except per share data)



06/30/2020



03/31/2020



12/31/2019



09/30/2019



06/30/2019



6/30/2020



6/30/2019

Results of operations:





























Interest income



$

36,892





$

37,003





$

36,192





$

34,667





$

34,570





$

73,895





$

67,729



Interest expense



5,395





5,740





5,723





5,477





5,626





11,135





11,310



Net interest income



31,497





31,263





30,469





29,190





28,944





62,760





56,419



Provision for credit losses



3,000





3,000





300





400





300





6,000





500



Net interest income after provision for credit losses



28,497





28,263





30,169





28,790





28,644





56,760





55,919



Noninterest income



17,471





9,585





13,309





12,312





18,560





27,056





27,746



Noninterest expense



27,813





23,854





25,426





22,887





25,727





51,667





48,486



Income before income tax expense



18,155





13,994





18,052





18,215





21,477





32,149





35,179



Income tax expense



4,576





3,321





5,670





4,603





2,833





7,897





6,185



Net income



13,579





10,673





12,382





13,612





18,644





24,252





28,994



Net income attributable to noncontrolling interest



101





118





87





82





95





219





178



Net income attributable to Nicolet Bankshares, Inc.



$

13,478





$

10,555





$

12,295





$

13,530





$

18,549





$

24,033





$

28,816



Earnings per common share:





























Basic



$

1.29





$

1.00





$

1.22





$

1.45





$

1.98





$

2.30





$

3.06



Diluted



$

1.28





$

0.98





$

1.18





$

1.40





$

1.91





$

2.25





$

2.97



Common Shares:





























Basic weighted average



10,417





10,516





10,061





9,347





9,374





10,467





9,418



Diluted weighted average



10,520





10,801





10,452





9,697





9,692





10,659





9,711



Outstanding



10,424





10,408





10,588





9,363





9,327





10,424





9,327



Noninterest Income:





























Trust services fee income



$

1,510





$

1,579





$

1,596





$

1,594





$

1,569





$

3,089





$

3,037



Brokerage fee income



2,269





2,322





2,190





2,113





2,002





4,591





3,812



Mortgage income, net



9,963





2,327





4,916





3,700





2,059





12,290





3,262



Service charges on deposit accounts



813





1,225





1,237





1,223





1,194





2,038





2,364



Card interchange income



1,637





1,562





1,683





1,735





1,660





3,199





3,080



BOLI income



540





703





535





495





880





1,243





1,339



Other noninterest income



1,487





521





1,285





1,166





1,624





2,008





3,108



Noninterest income without net gains



18,219





10,239





13,442





12,026





10,988





28,458





20,002



Asset gains (losses), net



(748)





(654)





(133)





286





7,572





(1,402)





7,744



Total noninterest income



$

17,471





$

9,585





$

13,309





$

12,312





$

18,560





$

27,056





$

27,746



Noninterest Expense:





























Personnel expense



$

14,482





$

13,323





$

13,628





$

12,914





$

15,358





$

27,805





$

27,895



Occupancy, equipment and office



4,361





4,204





3,827





3,454





3,757





8,565





7,507



Business development and marketing



2,514





1,359





1,397





1,428





1,579





3,873





2,860



Data processing



2,399





2,563





2,730





2,515





2,350





4,962





4,705



Intangibles amortization



880





993





936





914





969





1,873





2,022



Other noninterest expense



3,177





1,412





2,908





1,662





1,714





4,589





3,497



Total noninterest expense



$

27,813





$

23,854





$

25,426





$

22,887





$

25,727





$

51,667





$

48,486



Period-End Balances:





























Loans



$

2,821,501





$

2,607,424





$

2,573,751





$

2,242,931





$

2,203,273





$

2,821,501





$

2,203,273



Allowance for credit losses - loans



29,130





26,202





13,972





13,620





13,571





29,130





13,571



Securities available for sale, at fair value



510,809





511,860





449,302





419,300





403,989





510,809





403,989



Goodwill and other intangibles, net



164,094





164,974





165,967





121,371





122,285





164,094





122,285



Total assets



4,541,228





3,732,554





3,577,260





3,105,671





3,054,813





4,541,228





3,054,813



Deposits



3,537,805





3,023,466





2,954,453





2,584,447





2,536,639





3,537,805





2,536,639



Stockholders' equity



532,033





510,971





516,262





428,014





411,415





532,033





411,415



Book value per common share



51.04





49.09





48.76





45.71





44.11





51.04





44.11



Tangible book value per common share (1)



35.30





33.24





33.08





32.75





31.00





35.30





31.00



 

Nicolet Bankshares, Inc.





















Consolidated Financial Summary (Unaudited) - Continued

























At or for the Three Months Ended



At or for the Six Months Ended

(In thousands, except per share data)



06/30/2020



3/31/2020



12/31/2019



9/30/2019



6/30/2019



6/30/2020



6/30/2019

Average Balances:





























Loans



$

2,823,866





$

2,584,584





$

2,438,908





$

2,218,307





$

2,189,070





$

2,704,225





$

2,184,272



Investment securities



489,597





453,820





424,981





399,090





402,934





471,708





406,239



Interest-earning assets



3,917,499





3,167,505





2,974,974





2,763,997





2,702,357





3,542,502





2,718,557



Total assets



4,310,088





3,555,144





3,339,283





3,094,546





3,022,383





3,932,616





3,034,658



Deposits



3,403,188





2,920,071





2,756,295





2,563,821





2,514,226





3,161,630





2,535,459



Interest-bearing liabilities



2,741,199





2,218,592





2,023,448





1,895,754





1,892,775





2,479,896





1,919,345



Goodwill and other intangibles, net



164,564





165,532





147,636





121,895





122,841





165,048





123,363



Stockholders' equity



520,177





513,558





478,645





420,864





404,345





516,867





397,723



Selected Financial Ratios: (2)





























Return on average assets



1.26

%



1.19

%



1.46

%



1.73

%



2.46

%



1.23

%



1.91

%

Return on average common equity



10.42





8.27





10.19





12.75





18.40





9.35





14.61



Return on average tangible common equity (1)



15.24





12.20





14.74





17.95





26.43





13.74





21.18



Average equity to average assets



12.07





14.45





14.33





13.60





13.38





13.14





13.11



Stockholders' equity to assets



11.72





13.69





14.43





13.78





13.47





11.72





13.47



Tangible common equity to tangible assets (1)



8.41





9.70





10.27





10.28





9.86





8.41





9.86



Net interest margin



3.21





3.94





4.06





4.19





4.28





3.53





4.16



Efficiency ratio



55.69





57.16





57.57





55.19





64.01





56.36





63.00



Effective tax rate



25.21





23.73





31.41





25.27





13.19





24.56





17.58



Selected Asset Quality Information:





























Nonaccrual loans



$

11,998





$

14,769





14,122





$

9,238





$

7,650





$

11,998





$

7,650



Other real estate owned



1,000





1,000





1,000





1,325





300





1,000





300



Nonperforming assets



$

12,998





$

15,769





$

15,122





$

10,563





$

7,950





$

12,998





$

7,950



Net loan charge-offs (recoveries)



$

71





$

55





$

(52)





$

351





$

99





$

126





$

82



Allowance for credit losses-loans to loans



1.03

%



1.00

%



0.54

%



0.61

%



0.62

%



1.03

%



0.62

%

Net loan charge-offs to average loans (2)



0.01





0.01





(0.01)





0.06





0.02





0.01





0.01



Nonperforming loans to total loans



0.43





0.57





0.55





0.41





0.35





0.43





0.35



Nonperforming assets to total assets



0.29





0.42





0.42





0.34





0.26





0.29





0.26



Selected Other Information:





























Interest income resolved PCI loans (rounded)



 N/A





N/A





$

1,400





$

1,800





$

1,300





N/A



$

1,500



Tax-equivalent adjustment net interest income



$

229





$

231





$

257





$

251





$

263





$

460





$

535



Tax benefit on stock-based compensation



$

(24)





$

(323)





$

(1,275)





$

(128)





$

(739)





$

(347)





$

(883)



Common stock repurchased (dollars) (3)



$

0





$

13,903





$

3,383





$

576





$

9,142





$

13,903





$

14,742



Common stock repurchased (full shares) (3)



0





206,833





47,728





9,300





151,098





206,833





253,753







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.

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)































































At or for the Three Months Ended





June 30, 2020



March 31, 2020



June 30, 2019





Average







Average



Average







Average



Average







Average

(In thousands)



Balance



Interest



Rate



Balance



Interest



Rate



Balance



Interest



Rate

ASSETS





































PPP loans



$

264,705





$

1,786





2.67

%



$





$





%



$





$





%

Total loans ex PPP



2,559,161





32,008





4.96

%



2,584,584





33,808





5.19

%



2,189,070





31,257





5.66

%

Total loans (1) (2)



2,823,866





33,794





4.74

%



2,584,584





33,808





5.19

%



2,189,070





31,257





5.66

%

Investment securities (2)



489,597





2,752





2.25

%



453,820





2,764





2.44

%



402,934





2,778





2.76

%

Other interest-earning assets



604,036





575





0.38

%



129,101





662





2.04

%



110,353





798





2.87

%

Total interest-earning assets



3,917,499





37,121





3.76

%



3,167,505





37,234





4.66

%



2,702,357





34,833





5.11

%

Other assets, net



392,589













387,639













320,026











Total assets



$4,310,088











$3,555,144











$3,022,383









LIABILITIES AND STOCKHOLDERS' EQUITY

























Interest-bearing core deposits



$

2,054,574





$

3,170





0.62

%



$

1,975,145





$

4,182





0.85

%



$

1,755,258





$

4,696





1.07

%

Brokered deposits



342,776





1,285





1.51

%



158,068





775





1.97

%



60,115





34





0.23

%

Total interest-bearing deposits



2,397,350





4,455





0.75

%



2,133,213





4,957





0.93

%



1,815,373





4,730





1.05

%

PPPLF



237,153





210





0.35

%











0.00

%











0.00

%

Other interest-bearing liabilities



106,696





730





2.71

%



85,379





783





3.64

%



77,402





896





4.59

%

Total interest-bearing liabilities



2,741,199





5,395





0.79

%



2,218,592





5,740





1.04

%



1,892,775





5,626





1.19

%

Noninterest-bearing demand deposits



1,005,838













786,858













698,853











Other liabilities



42,874













36,136













26,410











Stockholders' equity



520,177













513,558













404,345











Total liabilities and stockholders' equity



$

4,310,088













$

3,555,144













$

3,022,383











Net interest income and rate spread







$

31,726





2.97

%







$

31,494





3.62

%







$

29,207





3.92

%

Net interest margin











3.21

%











3.94

%











4.28

%











































At or for the Six Months Ended

















June 30, 2020



June 30, 2019

















Average







Average



Average







Average













(In thousands)



Balance



Interest



Rate



Balance



Interest



Rate













ASSETS





































PPP loans



$

132,353





$

1,786





2.67

%



$





$





%













Total loans ex PPP



2,571,872





65,816





5.07

%



2,184,272





61,270





5.59

%













Total loans (1) (2)



2,704,225





67,602





4.95

%



2,184,272





61,270





5.59

%













Investment securities (2)



471,708





5,516





2.34

%



406,239





5,187





2.55

%













Other interest-earning assets



366,569





1,237





0.67

%



128,046





1,807





2.81

%













Total interest-earning assets



3,542,502





74,355





4.16

%



2,718,557





68,264





5.00

%













Other assets, net



390,114













316,101























Total assets



$

3,932,616













$

3,034,658























LIABILITIES AND STOCKHOLDERS' EQUITY

























Interest-bearing core deposits



$

2,014,860





$

7,353





0.73

%



$

1,772,343





$

9,346





1.06

%













Brokered deposits



250,422





2,059





1.65

%



69,634





161





0.47

%













Total interest-bearing deposits



2,265,282





9,412





0.84

%



1,841,977





9,507





1.04

%













PPPLF



118,576





210





0.35

%











%













Other interest-bearing liabilities



96,038





1,513





3.12

%



77,368





1,803





4.64

%













Total interest-bearing liabilities



2,479,896





11,135





0.90

%



1,919,345





11,310





1.19

%













Noninterest-bearing demand deposits



896,348













693,482























Other liabilities



39,505













24,108























Stockholders' equity



516,867













397,723























Total liabilities and stockholders' equity



$

3,932,616













$

3,034,658























Net interest income and rate spread







$

63,220





3.26

%







$

56,954





3.81

%













Net interest margin











3.53

%











4.16

%















(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.

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/nicolet-bankshares-inc-announces-second-quarter-2020-earnings-301097377.html

SOURCE Nicolet Bankshares, Inc.

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