Nicolet Bankshares (NIC) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $33 million, up from $29 million in Q2 2024 and $17 million in Q3 2023, with diluted EPS of $2.10 and ROAA of 1.50%.

• Adjusted earnings were $31.6 million, with adjusted diluted EPS of $2.04 and adjusted ROAA of 1.36%.

• Nine-month 2024 net income reached $90 million, with adjusted net income of $87 million, compared to $31 million and $73 million, respectively, for the same period in 2023.

• Strong results across all revenue lines, with growth in loans, core deposits, and fee income; net interest margin continued to rise.

• Asset quality remained strong, with nonperforming assets at 0.31% of total assets, the lowest in over three years, and net charge-offs at 0.02% of loans.

Financial highlights

• Net interest income for Q3 2024 was $68.4 million, up $3 million sequentially and 11.2% year-over-year; net interest margin rose to 3.44%.

• Noninterest income increased to $22.4 million, up 14.1% sequentially and 35.3% year-over-year, with gains in wealth management, mortgage, and other fee income.

• Noninterest expense was $49 million, up $2 million from Q2 2024, mainly due to higher personnel costs.

• Total assets at September 30, 2024, were $8.6 billion, up $80 million from Q2 2024.

• Total deposits reached $7.3 billion, increasing $19 million from the previous quarter.

Outlook and guidance

• Mortgage volumes expected to slow in Q4 and Q1 due to seasonality despite strong Q3 demand.

• Share repurchase program remains paused; focus on capital deployment through dividends and selective M&A.

• 2025 capital priorities include potential M&A, share repurchases, and review of the cash dividend.

• Management highlighted resilience amid higher interest rates, inflation, and labor market challenges, with continued focus on core earnings and credit quality.