Nicolet Bankshares (NIC) Q2 2024 earnings summary

Executive summary

• Net income for the six months ended June 30, 2024 was $57 million, up from $14 million in the prior year, with EPS of $3.74 versus $0.91, reflecting strong core performance and the absence of prior year non-recurring losses.

• Q2 2024 net income was $29 million, up from $28 million in Q1 2024 and $23 million in Q2 2023.

• Total assets reached $8.6 billion, up $88 million (1%) from year-end 2023, driven by $175 million (3%) loan growth, partially offset by lower cash balances.

• Deposits increased $43 million to $7.2 billion, with growth in money market and time deposits, while noninterest-bearing demand deposits declined due to seasonal and rate-driven migration.

• Quarterly cash dividend of $0.28 per share paid, a 12% increase over the prior quarter.

Financial highlights

• Net interest income for the first half of 2024 was $128 million, up 11% year-over-year, with net interest margin expanding to 3.31% from 3.02%.

• Net interest income for Q2 2024 was $65 million, up $3 million from Q1 2024, with net interest margin improving to 3.35% in Q2 2024 from 3.26% in Q1 2024.

• Noninterest income was $39 million for the first half, a $44 million improvement over the prior year, primarily due to the absence of 2023's $38.8 million loss on securities sales.

• Noninterest expense increased 5% to $94 million for the first half, mainly from higher personnel costs, while non-personnel expenses declined slightly.

• Book value per share rose to $73.03 at June 30, 2024, from $71.24 at March 31, 2024.

Outlook and guidance

• Management expects continued positive economic growth in the second half of 2024, with the Federal Reserve likely to cut rates by 25 bps in September.

• Margin improvement anticipated due to C&I focus and disciplined deposit pricing.

• Asset quality remains strong with few signs of significant stress in core markets.