Nicolet(US:NIC)2024-10-15 20:14Financial Performance - Net income for Q3 2024 was $33 million, up from $29 million in Q2 2024 and $17 million in Q3 2023, with earnings per diluted common share increasing to $2.10 from $1.92 and $1.14 respectively[1] - For the first nine months of 2024, net income reached $90 million, compared to $31 million for the same period in 2023, with adjusted net income of $87 million versus $73 million[1] - Net income for Q3 2024 reached $32,516,000, a rise of 7.5% from $29,273,000 in Q2 2024[13] - Adjusted net income for Q3 2024 was $31,569,000, up from $28,777,000 in Q3 2023, representing a 6.1% increase year-over-year[20] - The company reported a net income (GAAP) of $32,516,000 for Q3 2024, compared to $29,273,000 in Q3 2023, which is an increase of 7.6%[20] Asset Quality - Nonperforming assets decreased to $26 million, representing 0.31% of total assets, the lowest level in over three years, indicating solid asset quality[4] - Nonperforming loans to total loans ratio decreased to 0.39% from 0.43%, showing an improvement in asset quality[14] - The allowance for credit losses on loans was $66 million, representing 1.00% of total loans, consistent with previous quarters[4] - The allowance for credit losses was reported at $379 thousand, up from $283 thousand, indicating a proactive approach to managing credit risk[14] Revenue and Income Sources - Net interest income for Q3 2024 was $68 million, an increase of $3 million from Q2 2024, with a net interest margin of 3.44%, up 9 basis points[5] - Noninterest income rose to $22 million in Q3 2024, reflecting a $3 million increase over Q2 2024, with growth in wealth management and mortgage income[6] - Total interest income for Q3 2024 was $112,622,000, an increase of 3.4% from $108,878,000 in Q2 2024[13] - Net interest income after provision for credit losses was $67,616,000, up from $63,992,000 in the previous quarter, reflecting a growth of 4.0%[13] - Noninterest income totaled $22,378,000, representing an increase of 14.2% compared to $19,609,000 in Q2 2024[13] Balance Sheet and Equity - Total assets increased by $80 million (1%) to $8.6 billion from Q2 2024, primarily due to loan growth and improvements in the fair value of the securities portfolio[4] - Total assets reached $8,596,812 thousand, an increase from $8,481,186 thousand as of June 30, 2024, reflecting a growth of 1.36%[14] - Stockholders' equity rose to $1,118,242 thousand, compared to $1,070,379 thousand in the previous quarter, marking a 4.48% increase[14] - Average stockholders' equity (common) for Q3 2024 was $1,118,242,000, up from $1,070,379,000 in Q3 2023, reflecting a 4.5% increase[20] Expenses and Cost Management - Personnel expenses increased by $3 million in Q3 2024, reflecting higher incentives and salaries, while non-personnel expenses decreased by $0.4 million[7] - Total interest expense was $44,256,000, up from $43,536,000 in Q2 2024, indicating a rise of 1.6%[13] - Provision for credit losses decreased to $750,000 from $1,350,000 in the previous quarter, a reduction of 44.4%[13] - Personnel expenses increased to $28,937,000, compared to $26,285,000 in Q2 2024, reflecting a growth of 10.1%[13] - The efficiency ratio improved to 54.57%, down from 55.24%, indicating better cost management[14] Future Outlook - The company anticipates continued growth in net interest income and noninterest income driven by strategic market expansions and new product offerings[13] - The effective tax rate changed from 25% to 19.5% following a new Wisconsin tax law effective July 1, 2023, impacting future earnings positively[20] - The company incurred a pre-tax loss of $38 million from the sale of $500 million U.S. Treasury securities, which was part of a balance sheet repositioning strategy[20] Shareholder Information - The company reported a total of 15,052,000 basic weighted average shares outstanding for Q3 2024, slightly up from 14,937,000 in Q2 2024[13] - Basic earnings per share increased to $2.16, compared to $1.96 in the previous quarter, marking an increase of 10.2%[13] - The adjusted diluted earnings per common share (Non-GAAP) was $2.04 for Q3 2024, compared to $1.88 in Q3 2023, a growth of 8.5%[20] - The company reported a book value per common share of $76.09, up from $73.03 in the previous quarter, reflecting an increase of 2.82%[14]