Nicolet(US:NIC)2024-11-01 20:16Financial Performance - Net income for the three months ended September 30, 2024, was $32,516 thousand, compared to $17,158 thousand for the same period in 2023, reflecting an increase of 89.5%[7] - Basic earnings per share for the three months ended September 30, 2024, was $2.16, up from $1.16 for the same period in 2023, an increase of 86.2%[7] - Noninterest income for the three months ended September 30, 2024, totaled $22,378 thousand, compared to $16,541 thousand for the same period in 2023, an increase of 35.3%[7] - Comprehensive income for the three months ended September 30, 2024, was $53,382 thousand, compared to a loss of $(924) thousand for the same period in 2023[9] - Net income for the nine months ended September 30, 2024, was $90 million, or $5.84 per diluted common share, compared to $31 million, or $2.05 per diluted common share for the same period in 2023[109] - Adjusted net income for the nine months ended September 30, 2024, was $86.6 million, reflecting a significant improvement from the previous year[109] Asset and Liability Growth - Total assets increased to $8,637,118 thousand as of September 30, 2024, compared to $8,468,678 thousand at December 31, 2023, representing a growth of 1.99%[5] - Total liabilities increased to $7,487,791 thousand as of September 30, 2024, from $7,429,671 thousand at December 31, 2023, a growth of 0.78%[5] - Total stockholders' equity increased to $1,149,327,000 as of September 30, 2024, up from $977,638,000 at June 30, 2023, reflecting a growth of approximately 17.5%[12] - Total deposits increased to $7,259,997 thousand as of September 30, 2024, from $7,197,800 thousand at December 31, 2023, a rise of 0.86%[5] Credit Quality and Provisions - The allowance for credit losses on loans increased to $(65,785) thousand as of September 30, 2024, compared to $(63,610) thousand at December 31, 2023, indicating a higher provision for potential loan losses[5] - The provision for credit losses for the three months ended September 30, 2024, is $750,000, compared to $450,000 for the same period in 2023, indicating a 66.67% increase[53] - The company reported a provision for credit losses of $2,850,000 for the nine months ended September 30, 2024, down from $3,990,000 for the same period in 2023, representing a decrease of 29%[14] - The net charge-offs for the nine months ended September 30, 2024, amount to $(675,000), reflecting a decrease from $(1,066,000) in the same period of the previous year[48] Loan Portfolio - The loan portfolio totaled $6,556,840,000 as of September 30, 2024, with a net allowance for credit losses of $65,785,000, representing 1.00% of total loans[43] - Total loans as of September 30, 2024, amounted to $6,556,840,000, with 30-89 days past due at $5,597,000 and 90 days & over at $25,565,000, representing 0.1% and 0.4% of total loans respectively[58] - The commercial and industrial loans segment accounted for 21% of the total loan portfolio, increasing from 20% as of December 31, 2023[43] - Total loans grew by $203 million (3%) from December 31, 2023, with notable increases in agricultural, commercial, and residential real estate loans[133] Interest Income and Expenses - Net interest income after provision for credit losses rose to $67,616 thousand for the three months ended September 30, 2024, up from $61,024 thousand for the same period in 2023, an increase of 4.6%[7] - The net interest margin improved to 3.35% for the nine months ended September 30, 2024, compared to 3.07% for the same period in 2023[110] - Tax-equivalent net interest income was reported at $197,993 thousand with a net interest margin of 3.35%, up from $178,856 thousand and 3.07% in 2023[114] - The interest rate spread improved to 2.51% for the current period, compared to 2.29% in the previous year[114] Market and Economic Conditions - The Consumer Price Index (CPI) for September increased by 0.2%, with shelter and food components being the primary drivers[103] - Concerns regarding a recession in 2024 have diminished, influenced by a strong employment report and higher-than-expected CPI[103] - The U.S. election is anticipated to introduce additional economic volatility in the coming weeks[103] Regulatory and Compliance - The Bank's regulatory capital ratios remain above minimum regulatory ratios, qualifying it as well-capitalized under the prompt-corrective action framework[159] - There were no changes in the company's internal control over financial reporting during the quarter that materially affected its financial reporting[165] - The company has not engaged in any legal proceedings expected to have a material adverse effect on its financial position[166]