Nicolet Bankshares (NIC) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $29.3 million, with diluted EPS of $1.92 and ROAA of 1.39%.

• First half 2024 net income was $57 million, up from $14 million in the prior year, with EPS of $3.74, reflecting strong core performance and the absence of prior year non-recurring losses.

• Total assets reached $8.6 billion, driven by $175 million loan growth and partially offset by lower cash balances.

• Deposits increased to $7.24 billion as of June 30, 2024, with growth in money market and time deposits.

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

Financial highlights

• Net interest income for Q2 2024 was $65.3 million, up 4.0% sequentially and 10.7% year-over-year; NIM improved to 3.35%.

• Noninterest income was $20 million in Q2 2024, up 16.4% year-over-year, with mortgage and wealth management revenues rising.

• Noninterest expense was $47 million in Q2 2024, little changed from Q1 2024.

• Pretax income increased 7.0% sequentially and 20.6% year-over-year to $36.7 million.

• Book value per share rose to $73.03 at June 30, 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.

• NIM expected to benefit from a high proportion of fixed-rate loans if rates remain elevated.

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

• Share repurchase program remains paused; focus on capital retention, potential M&A, and dividend review.

• Management anticipates continued peer-leading performance.