Nicolet(NIC) - 2025 Q1 - Quarterly Report

Financial Performance - Net interest income for Q1 2025 was $71,206,000, a slight decrease from $71,550,000 in Q4 2024[129] - Provision for credit losses increased to $1,500,000 in Q1 2025 from $1,000,000 in Q4 2024[129] - Noninterest income decreased to $18,223,000 in Q1 2025 from $20,858,000 in Q4 2024[129] - Net income (GAAP) for Q1 2025 was $32,592,000, down from $34,480,000 in Q4 2024[129] - Basic earnings per share (EPS) for Q1 2025 was $2.14, compared to $2.25 in Q4 2024[129] - Adjusted net income for Q1 2025 was $32.9 million, compared to $34.1 million in Q4 2024[134] Asset and Loan Growth - Total assets increased to $8,975,222,000 as of March 31, 2025, from $8,796,795,000 at the end of Q4 2024[129] - Loans outstanding rose to $6,745,598,000 in Q1 2025, up from $6,626,584,000 in Q4 2024[129] - Total assets increased by $178 million (2%) to $9.0 billion as of March 31, 2025, primarily driven by loan growth[136] - Loans reached $6.7 billion, an increase of $119 million (2%) from the previous quarter, mainly in commercial and industrial loans[138] - Total loans increased by $119 million (2%) from December 31, 2024, mainly in commercial and industrial loans[162] - Total loans reached $6.7 billion as of March 31, 2025, an increase of $119 million (2%) from December 31, 2024, primarily driven by growth in commercial and industrial loans[167] Deposits and Equity - Deposits increased to $7,572,190,000 in Q1 2025, compared to $7,403,684,000 in Q4 2024[129] - Total deposits rose by $169 million (2%) to $7.6 billion, including a $107 million increase in brokered deposits and a $62 million increase in customer deposits[138] - Total stockholders' equity was $1.2 billion at March 31, 2025, reflecting solid earnings and favorable movements in the securities portfolio[162] - Core deposits amounted to $6.7 billion at March 31, 2025, reflecting a $62 million increase from December 31, 2024[183] Interest Income and Margin - The net interest margin improved to 3.58%, up 25 basis points from the comparable 2024 period, with the yield on earning assets increasing to 5.67%[138] - Net interest income increased by $8.4 million (13%) compared to Q1 2024, driven by an $8.7 million rise in interest income[138] - Tax-equivalent net interest income for Q1 2025 was $72 million, an increase of $8 million (13%) compared to Q1 2024, driven by favorable rates and volumes[146] - Average interest-earning assets rose by $450 million (6%) to $8.1 billion, primarily due to a $311 million (5%) increase in average loans[147] - The interest rate spread increased by 35 basis points, with loan yield improving by 19 basis points to 6.08% and the yield on investment securities increasing by 34 basis points to 3.14%[149] Noninterest Income and Expenses - Noninterest income for Q1 2025 was $18.2 million, a decrease of $1.2 million from Q1 2024, largely due to changes in asset gains and losses[138] - Noninterest expense was $47.8 million, reflecting a slight increase of $0.6 million (1%) compared to Q1 2024[138] - Total noninterest expense for Q1 2025 was $47.8 million, an increase of $0.6 million (1%) compared to Q1 2024[158] Credit Quality and Risk - The allowance for credit losses (ACL-Loans) was $67 million, representing 1.00% of period-end loans, consistent with the previous quarter and slightly down from 1.01% a year ago[176] - The provision for credit losses for the three months ended March 31, 2025, was $1.5 million, compared to $750,000 for the same period in 2024[178] - Net charge-offs for the three months ended March 31, 2025, totaled $342,000, with a net charge-off ratio of 0.02% of average loans, annualized[178] - The commercial loan portfolio is diversified across various industries, including manufacturing, wholesaling, and agriculture, indicating a broad risk exposure[167] - As of March 31, 2025, nonperforming assets totaled $29 million, representing 0.33% of total assets, unchanged from December 31, 2024[179] - Potential problem loans were reported at $70 million, accounting for 1% of total loans as of March 31, 2025, compared to $68 million at December 31, 2024[180] Capital and Stock Repurchase - As of March 31, 2025, the Bank's total risk-based capital is $900,830,000, with a total capital ratio of 12.2%[199] - The Company repurchased common stock worth $26,047,000 during the three months ended March 31, 2025, and a total of $10,137,000 during the year ended December 31, 2024[199] - The Tier 1 risk-based capital ratio for the Bank is 11.3% as of March 31, 2025, compared to 10.8% at the end of 2024[199] - The total risk-based capital for the Company is $1,068,591,000, with a total capital ratio of 14.5%[199] - The Company has $10 million authorized for stock repurchases as of March 31, 2025, with an increase of $60 million authorized on April 15, 2025[200] Regulatory and Market Risk - The allowance for credit losses is considered a critical accounting estimate, impacting reported financial results significantly[201] - There have been no material changes in market risk as of March 31, 2025, compared to the previous year[202] - Management regularly reviews capital adequacy to ensure compliance with regulatory guidelines and to address business risks[198]