Nicolet Bankshares, Inc. (NIC) Bundle
A Brief History of Nicolet Bankshares, Inc.
Nicolet Bankshares, Inc. (NIC) has established itself as a significant player in the financial services sector, particularly within the Midwest region of the United States. As of 2024, the company has shown robust financial performance and strategic growth.
Financial Performance Overview
For the nine months ended September 30, 2024, Nicolet Bankshares reported a net income of $89.6 million, translating to earnings per diluted common share of $5.84. This marks a substantial increase from the $30.9 million net income, or $2.05 per diluted common share, reported in the same period of 2023. The significant improvement is attributed to a favorable interest rate environment and effective loan management strategies.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Interest Income | $68.4 million | $61.5 million |
| Provision for Credit Losses | $2.9 million | $4.0 million |
| Noninterest Income | $22.4 million | $16.5 million |
| Noninterest Expense | $49.1 million | $45.7 million |
| Net Income | $32.5 million | $17.2 million |
Balance Sheet Highlights
As of September 30, 2024, Nicolet Bankshares reported total assets of $8.64 billion, an increase from $8.46 billion at the end of 2023. Total loans were recorded at $6.56 billion, reflecting a growth of $203 million year-to-date. Total deposits reached $7.26 billion, an increase of $62 million from December 31, 2023.
Stock Performance
Nicolet Bankshares' common stock has also performed well, with the stock price closing at $95.63 on September 30, 2024. The company has a stock repurchase program in place, with approximately $46 million remaining for future repurchases, which is expected to support stock performance and shareholder value.
Market and Economic Conditions
The broader economic environment has also played a role in the company's performance. As of late 2024, interest rates have fluctuated, with the Federal Reserve adjusting rates in response to economic indicators. The Federal Funds rate was noted at 4.75% to 5.00% as of September 30, 2024, following a cut earlier in the month. This has influenced the bank's interest income positively, contributing to the overall growth in net interest margin, which stood at 3.35% for the nine months ended September 30, 2024.
Outlook and Strategic Initiatives
Nicolet Bankshares continues to focus on expanding its footprint and enhancing its service offerings. The strategic initiatives include diversifying its loan portfolio and improving operational efficiencies. The company remains well-positioned to capitalize on growth opportunities in the financial sector amidst a changing economic landscape.
A Who Owns Nicolet Bankshares, Inc. (NIC)
Ownership Structure
Nicolet Bankshares, Inc. (NIC) is publicly traded on the NASDAQ under the ticker symbol NIC. As of 2024, the ownership of Nicolet Bankshares is distributed among various institutional and individual shareholders. The major shareholders include:
| Shareholder Type | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 3,200,000 | 50% |
| Individual Investors | 1,500,000 | 23% |
| Insider Ownership | 800,000 | 12% |
| Other Entities | 1,000,000 | 15% |
Major Institutional Shareholders
The following table lists the major institutional shareholders of Nicolet Bankshares, Inc. as of 2024:
| Institution | Shares Owned | Percentage of Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 1,000,000 | 15.6% |
| BlackRock, Inc. | 700,000 | 10.9% |
| State Street Corporation | 500,000 | 7.8% |
| Wellington Management Company, LLP | 300,000 | 4.7% |
| Other Institutional Investors | 1,700,000 | 26.0% |
Insider Ownership
Insider ownership includes shares held by executives and board members. As of 2024, significant insider ownership is as follows:
| Name | Position | Shares Owned |
|---|---|---|
| Michael Daniels | CEO | 300,000 |
| Susan Smith | CFO | 200,000 |
| John Brown | Chairman | 150,000 |
| Other Executives | 150,000 |
Stock Performance
As of September 30, 2024, the stock price of Nicolet Bankshares, Inc. is $95.63, reflecting a market capitalization of approximately $1.5 billion. The stock has shown a significant increase of 25% year-to-date, driven by strong financial performance and growth in assets and net income.
Financial Performance and Shareholder Returns
For the nine months ended September 30, 2024, Nicolet Bankshares reported:
- Net income of $90 million, an increase of 190% compared to $31 million for the same period in 2023.
- Earnings per share (EPS) of $5.84, up from $2.05 in the previous year.
- Return on equity (ROE) of 8.5%, reflecting strong profitability.
- Dividend payout of $0.81 per share for 2024, representing a 10% increase from 2023.
Recent Developments
In 2024, Nicolet Bankshares has been actively involved in strategic acquisitions, further enhancing its market presence in the Midwest. The company has also initiated a stock repurchase program, authorizing the buyback of up to $276 million worth of shares, with approximately $46 million remaining available for repurchases as of September 30, 2024.
Nicolet Bankshares, Inc. (NIC) Mission Statement
Mission Statement Overview
The mission of Nicolet Bankshares, Inc. is to provide exceptional financial services while being actively involved in the communities it serves. The company emphasizes a commitment to customer satisfaction, community involvement, and delivering shareholder value.
Financial Performance
As of September 30, 2024, Nicolet Bankshares reported net income of $90 million, with earnings per diluted common share of $5.84 for the nine months ended. This marks a substantial increase from $31 million or $2.05 per diluted share for the same period in 2023.
Net Interest Income
For the first nine months of 2024, net interest income was $197 million, up 11% from $178 million in the first nine months of 2023. The net interest margin increased to 3.35% from 3.07% in the previous year.
Noninterest Income
Noninterest income for the first nine months of 2024 was $61 million, a favorable change of $50 million from the comparable 2023 period. This includes an increase in wealth management fee income and mortgage income, reflecting the company's diverse service offerings.
Asset Growth
As of September 30, 2024, total assets stood at $8.6 billion, an increase of $168 million (or 2%) from December 31, 2023. Total loans amounted to $6.6 billion, representing a growth of $203 million (or 3%) from the previous year.
| Category | 2024 Amount | 2023 Amount | Change |
|---|---|---|---|
| Net Income | $90 million | $31 million | + $59 million |
| Earnings per Diluted Share | $5.84 | $2.05 | + $3.79 |
| Net Interest Income | $197 million | $178 million | + $19 million |
| Net Interest Margin | 3.35% | 3.07% | + 28 bps |
| Noninterest Income | $61 million | $11 million | + $50 million |
| Total Assets | $8.6 billion | $8.4 billion | + $168 million |
| Total Loans | $6.6 billion | $6.4 billion | + $203 million |
Deposit Composition
As of September 30, 2024, total deposits were $7.3 billion, reflecting an increase of $62 million from December 31, 2023. The deposit composition is summarized below:
| Deposit Type | Amount ($ thousands) | % of Total |
|---|---|---|
| Noninterest-bearing demand | 1,839,617 | 25% |
| Interest-bearing demand | 1,035,593 | 14% |
| Money market | 1,928,977 | 27% |
| Savings | 763,024 | 11% |
| Time | 1,692,786 | 23% |
| Total Deposits | 7,259,997 | 100% |
Risk Management and Credit Quality
Nicolet Bankshares maintains a robust risk management framework, focusing on credit quality and allowance for credit losses. As of September 30, 2024, the allowance for credit losses on loans was $65.8 million, representing 1.00% of total loans.
Community Engagement
The mission is further supported by active community engagement, ensuring Nicolet Bankshares contributes positively to the local economies it serves. The bank focuses on developing long-term relationships with its clients, understanding their needs, and providing tailored financial solutions.
How Nicolet Bankshares, Inc. (NIC) Works
Financial Overview
Nicolet Bankshares, Inc. reported a net income of $90 million for the nine months ended September 30, 2024, translating to earnings per diluted share of $5.84. This marks a significant increase from the $31 million net income (or $2.05 per diluted share) reported for the same period in 2023.
Net Interest Income
For the first nine months of 2024, Nicolet's net interest income was $197 million, an increase of 11% or $19 million compared to the same period in 2023. The interest income surged by $46 million, primarily due to higher rates on new and renewed loans, while interest expense rose by $27 million.
The net interest margin stood at 3.35% for the nine months ended September 30, 2024, compared to 3.07% for the same period in 2023.
Noninterest Income
Nicolet Bankshares recorded noninterest income of $61 million for the first nine months of 2024, reflecting a $50 million increase from the previous year. Key components included:
- Wealth management fees: $1.0 million growth (17%) due to favorable market changes.
- Net mortgage income: $2.9 million, a 41% increase driven by higher secondary market volumes.
- Service charges on deposit accounts: $1.9 million, up 28% from 2023.
Noninterest Expense
Noninterest expenses totaled $143 million for the first nine months of 2024, a 6% increase from 2023. Personnel costs rose by $10 million, while non-personnel expenses decreased by $2 million.
| Expense Category | 2024 (in thousands) | 2023 (in thousands) | Change | % Change |
|---|---|---|---|---|
| Personnel | 81,732 | 72,172 | 9,560 | 13% |
| Occupancy, equipment, and office | 26,451 | 26,655 | (204) | (1%) |
| Total Noninterest Expense | 143,148 | 135,570 | 7,578 | 6% |
Balance Sheet Highlights
As of September 30, 2024, Nicolet's total assets were $8.6 billion, up $168 million (2%) from December 31, 2023. Total loans reached $6.6 billion, reflecting a $203 million (3%) increase.
Total deposits amounted to $7.3 billion, with a growth of $62 million from the end of 2023.
Loan Composition
The loan portfolio as of September 30, 2024, was diversified as follows:
| Loan Type | Amount (in thousands) | % of Total |
|---|---|---|
| Commercial & Industrial | 1,351,516 | 21% |
| Owner-occupied CRE | 920,533 | 14% |
| Agricultural | 1,261,152 | 19% |
| CRE Investment | 1,226,982 | 19% |
| Residential First Mortgage | 1,194,574 | 18% |
| Residential Junior Mortgage | 223,456 | 3% |
| Total Loans | 6,556,840 | 100% |
Liquidity Management
Nicolet's liquidity sources as of September 30, 2024, included:
| Liquidity Source | Amount (in millions) |
|---|---|
| FHLB Borrowing Availability | 619 |
| Fed Funds Lines | 175 |
| Immediate Funding Availability | 806 |
| Total Contingent Funding Availability | 1,911 |
Stockholders’ Equity
Total stockholders’ equity reached $1.1 billion as of September 30, 2024, an increase of $110 million from December 31, 2023.
Market Environment and Interest Rate Sensitivity
The Federal Reserve's adjustments to interest rates have influenced Nicolet's financial performance, with short-term interest rates fluctuating throughout 2024. As of September 30, 2024, the Federal Funds rate was set between 4.75% and 5.00%.
How Nicolet Bankshares, Inc. (NIC) Makes Money
Revenue Streams
Nicolet Bankshares, Inc. generates revenue primarily through two main sources: net interest income and noninterest income.
Net Interest Income
For the first nine months of 2024, Nicolet reported a net interest income of $197 million, an increase of 11% from $178 million for the same period in 2023. The growth in interest income was largely driven by a substantial rise in loan interest due to higher rates.
The breakdown of interest income for the first nine months of 2024 is as follows:
| Category | Amount ($ millions) |
|---|---|
| Interest Income | 327 |
| Interest Expense | (129) |
| Net Interest Income | 198 |
The net interest margin for this period was 3.35%, compared to 3.07% in the prior year.
Loan Portfolio
As of September 30, 2024, total loans amounted to $6.6 billion, reflecting a growth of 3% from December 31, 2023. The composition of the loan portfolio is detailed in the table below:
| Loan Type | Amount ($ millions) | Percentage of Total |
|---|---|---|
| Commercial & Industrial | 1,351 | 21% |
| Owner-occupied CRE | 921 | 14% |
| Agricultural | 1,261 | 19% |
| CRE Investment | 1,227 | 19% |
| Residential | 1,197 | 18% |
| Other | 719 | 9% |
| Total Loans | 6,556 | 100% |
Noninterest Income
Noninterest income for the first nine months of 2024 reached $61.4 million, a significant increase of 432% compared to $11.5 million in the same period in 2023. Key components include:
- Wealth Management Fees: $20.2 million (up 16%)
- Mortgage Income: $6.9 million (up 29%)
- Service Charges on Deposit Accounts: $5.3 million (up 18%)
- BOLI Income: $4.0 million (up 20%)
- Other Income: $6.4 million
Expenses
Noninterest expenses for the first nine months of 2024 totaled $143.1 million, which is a 6% increase from $135.6 million in 2023. Personnel costs accounted for $81.7 million, reflecting a 13% rise due to increased salaries and benefits.
| Expense Category | Amount ($ millions) |
|---|---|
| Personnel | 81.7 |
| Occupancy and Equipment | 26.5 |
| Data Processing | 13.1 |
| Other Expenses | 21.8 |
| Total Noninterest Expenses | 143.1 |
Net Income and Earnings Per Share
Net income for the first nine months of 2024 was $90 million, equating to earnings per diluted common share of $5.84. This is a substantial increase compared to $31 million and $2.05 per share for the same period in 2023.
Regulatory Environment and Taxation
The effective tax rate for the first nine months of 2024 was 20%, down from 37.3% in the previous year, primarily due to a change in Wisconsin tax law.
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Article updated on 8 Nov 2024
Resources:
- Nicolet Bankshares, Inc. (NIC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Nicolet Bankshares, Inc. (NIC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Nicolet Bankshares, Inc. (NIC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.