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NICOLET BANKSHARES INC (NIC)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 delivered record profitability: net income $34.5M and diluted EPS $2.19, up sequentially from $32.5M and $2.10; NIM rose 10 bps to 3.61% as deposit costs fell 21 bps .
  • Noninterest income dipped to $20.9M on unfavorable deferred compensation plan asset valuations, partially offset by stronger mortgage and wealth fees; efficiency ratio improved to 52.17% from 54.57% in Q3 .
  • Balance sheet strengthened: TCE/TA increased to 9.33%; assets $8.80B (+$160M q/q); loans up $70M led by agriculture; deposits up $144M with mix shift toward interest-bearing .
  • Management highlighted strategic optionality (M&A, buybacks, dividend), restarted share repurchases ($10.1M, 92,440 shares) in Q4, and declared a $0.28 dividend in November; they expect continued strong earnings and capital to support potential deals in 2025 .
  • Wall Street consensus (S&P Global) was unavailable at time of analysis; estimate comparison will be updated when accessible.

What Went Well and What Went Wrong

What Went Well

  • Record quarterly earnings with sequential and YoY EPS growth; CEO cited “record year” with improved NIM, loan and deposit growth, and capital build .
  • NIM expansion to 3.61% driven by deposit cost relief (cost of funds down 21 bps q/q) despite an 8 bps decline in asset yields; net interest income rose $3.2M q/q to $71.6M .
  • Capital and asset quality remained strong: TCE/TA 9.33%, NPA/Assets stable at 0.33%, ACL/Loans 1.00%, net charge-offs negligible ($0.36M) .

What Went Wrong

  • Noninterest income fell $1.5M q/q to $20.9M due to unfavorable deferred compensation plan asset valuations, tempering the top-line diversification benefit .
  • Deferred comp liability mark drove a $2.3M q/q decline in personnel expense, but non-personnel expenses rose ($1.0M) on marketing and legal/professional, limiting opex leverage .
  • QoQ decline in noninterest-bearing demand deposits (-$48M) offset by higher interest-bearing balances (+$192M), indicating continued competition for deposits and mix pressure .

Financial Results

MetricQ4 2023Q3 2024Q4 2024
Net Interest Income ($USD Millions)$64.3 $68.4 $71.6
Noninterest Income ($USD Millions)$24.4 $22.4 $20.9
Noninterest Expense ($USD Millions)$50.3 $49.1 $48.2
Net Income ($USD Millions)$30.7 $32.5 $34.5
Diluted EPS ($USD)$2.02 $2.10 $2.19
Net Interest Margin (%)3.35% 3.51% 3.61%
Efficiency Ratio (%)60.41% 54.57% 52.17%
Return on Avg Assets (%)1.45% 1.50% 1.57%
Return on Avg Common Equity (%)12.20% 11.57% 11.79%
Effective Tax Rate (%)18.06% 20.39% 20.19%
Balance Sheet & CreditQ4 2023Q3 2024Q4 2024
Total Assets ($USD Millions)$8,468.7 $8,637.1 $8,796.8
Total Loans ($USD Millions)$6,353.9 $6,556.8 $6,626.6
Total Deposits ($USD Millions)$7,197.8 $7,260.0 $7,403.7
Book Value per Share ($USD)$69.76 $76.09 $76.38
Tangible Book Value per Share ($USD)$43.28 $50.29 $51.10
TCE/TA (%)7.98% 9.21% 9.33%
Nonperforming Assets ($USD Millions)$27.9 $26.4 $29.1
NPA / Assets (%)0.33% 0.31% 0.33%
ACL / Loans (%)1.00% 1.00% 1.00%
Net Loan Charge-offs ($USD Millions)$0.55 $0.38 $0.36
Deposit Mix (Period-End, $USD Millions)Q4 2023Q3 2024Q4 2024
Noninterest-bearing Demand$1,958.7 $1,839.6 $1,791.2
Interest-bearing Demand$1,055.5 $1,035.6 $1,168.6
Money Market$1,891.3 $1,929.0 $1,942.4
Savings$768.4 $763.0 $774.7
Time$1,523.9 $1,692.8 $1,726.8
Total Deposits$7,197.8 $7,260.0 $7,403.7
Total Brokered Deposits$615.4 $709.5 $750.4
Core Customer Deposits$6,582.4 $6,550.5 $6,653.3
Loan Mix (Period-End, $USD Millions)Q3 2024Q4 2024
Commercial-based Loans$4,991.9 $5,043.7
Retail-based Loans$1,565.0 $1,582.9
Total Loans$6,556.8 $6,626.6
Actuals vs Estimates (EPS, Revenue)Q4 2024
Diluted EPS ($)$2.19
Wall Street EPS Consensus (S&P Global)Unavailable (to be updated)
Net Interest Income ($M)$71.6
Noninterest Income ($M)$20.9
Wall Street Revenue Consensus (S&P Global)Unavailable (to be updated)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Formal Financial Guidance (Revenue, Margins, OpEx, Tax)Q4 2024 / FY 2025None providedNone providedMaintained (no formal ranges)
Dividend per Share (Quarterly)Q4 2024$0.28 (Q2 2024 declared and paid) $0.28 declared Nov 19, payable Dec 16 Maintained
Capital ActionsQ4 2024Repurchases paused earlier in 2024 Share repurchases restarted: $10.1M, 92,440 shares Resumed buybacks
Strategic Direction (M&A)2025 OutlookOpportunistic, peer-leading metrics positioning “Hope to return to the M&A market in 2025” Elevated optionality

Earnings Call Themes & Trends

Note: An earnings call transcript for Q4 2024 was not available in our document set; themes reflect management’s press release commentary.

TopicPrevious Mentions (Q2 & Q3 2024)Current Period (Q4 2024)Trend
Net interest margin trajectoryNIM improved to 3.35% (Q2) and 3.44% (Q3) on disciplined deposit pricing and loan repricing NIM rose to 3.61%; deposit costs -21 bps q/q; asset yields -8 bps Improving
Deposit costs/mixManaged funding costs; core deposits grew after seasonal Q1; brokered balances used tactically Interest-bearing deposits up $192M; noninterest-bearing down $48M; cost of funds down to 2.90% Mixed (cost relief, mix shift)
Credit qualityExceptional; NPAs at multi-year lows; net charge-offs negligible Stable NPAs at 0.33%, net charge-offs negligible; ACL/loans 1.00% Stable
Loan growth (agriculture, commercial)Loans +$132M q/q (Q2); continued growth (Q3) Loans +$70M q/q; strength in agricultural loans Continuing
Noninterest income (wealth/mortgage)Broad-based growth; positive AUM flows, mortgage gains (Q3) Wealth +$0.1M, mortgage +$0.5M; deferred comp asset marks unfavorable Modestly positive ex-marks
Capital/TCE buildTCE/TA moved to 8.57% (Q2) and 9.21% (Q3) with AFS improvement TCE/TA 9.33%; book and TBV per share up Strengthening
Strategic optionality (M&A, buybacks)Well-positioned; market fears limited concern Explicit intent to re-enter M&A in 2025; buybacks resumed Increasing

Management Commentary

  • “I am pleased to report Nicolet produced its best quarterly earnings in its 24-year history, which caps off a record year for our Company… record profitability, continued improvement in our net interest margin, solid loan and deposit growth, and… building capital” — Mike Daniels, Chairman, President, and CEO .
  • “Given our strong capital levels… we think all organic and acquisition options remain on the table in the coming year… we hope to return to the M&A market in 2025… we’ve been making one of the best acquisitions we can make by acquiring our own stock through share repurchases” — Mike Daniels .
  • Balance sheet color: assets +$160M q/q to $8.8B; loans +$70M (agriculture), deposits +$144M; capital +$24M q/q — driven by earnings and option exercises, partially offset by dividend and AFS valuation .

Q&A Highlights

  • No Q4 2024 earnings call transcript was available in our document set; therefore, Q&A themes, clarifications, and tone changes cannot be assessed at this time.

Estimates Context

  • S&P Global (Capital IQ) Wall Street consensus for Q4 2024 EPS and revenue was unavailable at time of analysis due to an API limit; as a result, we cannot assess beats/misses vs estimates for this quarter. We will update comparisons when access is restored.

Key Takeaways for Investors

  • Spread-driven upside: NIM expansion to 3.61% with deposit costs falling 21 bps q/q suggests continued core earnings resilience if funding costs remain benign .
  • Balanced growth: Loans grew $70M q/q with agriculture strength; deposits up $144M, albeit with mix shift toward interest-bearing balances, supporting liquidity and NII .
  • Operating discipline: Efficiency ratio improved to 52.17% from 54.57% (Q3) and 60.41% (Q4’23); strong cost control offset a softer noninterest income quarter .
  • Capital optionality: TCE/TA at 9.33% with book/TBV per share up; buybacks resumed ($10.1M) and dividend maintained ($0.28), underpinning shareholder returns while enabling future M&A .
  • Credit steady: NPA/Assets at 0.33% and ACL/Loans at 1.00% with negligible net charge-offs, supporting valuation and downside protection in a choppy macro .
  • Watch deferred comp marks: Unfavorable market valuations pressured noninterest income; expect variability tied to market performance, partially offset by core fee growth in wealth/mortgage .
  • 2025 narrative: Management’s explicit M&A commentary and confidence in peer-leading performance are potential stock catalysts; monitor deposit mix, NIM trajectory, and regulatory developments for timing of strategic actions .
Sources: Q4 2024 press release and Form 8-K (Jan 21, 2025) **[1174850_0001174850-25-000002_exhibit99_14q2024pressrele.htm:0]** **[1174850_0001174850-25-000002_exhibit99_14q2024pressrele.htm:1]** **[1174850_0001174850-25-000002_exhibit99_14q2024pressrele.htm:2]** **[1174850_0001174850-25-000002_exhibit99_14q2024pressrele.htm:4]** **[1174850_0001174850-25-000002_exhibit99_14q2024pressrele.htm:5]** **[1174850_0001174850-25-000002_exhibit99_14q2024pressrele.htm:6]** **[1174850_0001174850-25-000002_exhibit99_14q2024pressrele.htm:7]** **[1174850_0001174850-25-000002_exhibit99_14q2024pressrele.htm:8]** **[1174850_0001174850-25-000002_exhibit99_14q2024pressrele.htm:9]** **[1174850_0001174850-25-000002_exhibit99_14q2024pressrele.htm:10]** **[1174850_0001174850-25-000002_nic-20250121.htm:0]** **[1174850_0001174850-25-000002_nic-20250121.htm:1]** **[1174850_0001174850-25-000002_nic-20250121.htm:2]**; Q4 2024 press release (Jan 21, 2025) **[1174850_ff9ca9927f1f4a91ab93202ca1b4be24_0]** **[1174850_ff9ca9927f1f4a91ab93202ca1b4be24_1]** **[1174850_ff9ca9927f1f4a91ab93202ca1b4be24_2]** **[1174850_ff9ca9927f1f4a91ab93202ca1b4be24_3]** **[1174850_ff9ca9927f1f4a91ab93202ca1b4be24_4]** **[1174850_ff9ca9927f1f4a91ab93202ca1b4be24_5]** **[1174850_ff9ca9927f1f4a91ab93202ca1b4be24_6]** **[1174850_ff9ca9927f1f4a91ab93202ca1b4be24_7]** **[1174850_ff9ca9927f1f4a91ab93202ca1b4be24_8]** **[1174850_ff9ca9927f1f4a91ab93202ca1b4be24_9]** **[1174850_ff9ca9927f1f4a91ab93202ca1b4be24_10]** **[1174850_ff9ca9927f1f4a91ab93202ca1b4be24_11]** **[1174850_ff9ca9927f1f4a91ab93202ca1b4be24_12]** **[1174850_ff9ca9927f1f4a91ab93202ca1b4be24_13]** **[1174850_ff9ca9927f1f4a91ab93202ca1b4be24_14]** **[1174850_ff9ca9927f1f4a91ab93202ca1b4be24_15]** **[1174850_ff9ca9927f1f4a91ab93202ca1b4be24_16]**; Q3 2024 press release and 8-K (Oct 15, 2024) **[1174850_2ee631eb9ab44b5fa0408a303cf0ea5d_0]** **[1174850_2ee631eb9ab44b5fa0408a303cf0ea5d_1]** **[1174850_2ee631eb9ab44b5fa0408a303cf0ea5d_2]** **[1174850_2ee631eb9ab44b5fa0408a303cf0ea5d_3]** **[1174850_2ee631eb9ab44b5fa0408a303cf0ea5d_4]** **[1174850_2ee631eb9ab44b5fa0408a303cf0ea5d_5]** **[1174850_2ee631eb9ab44b5fa0408a303cf0ea5d_6]** **[1174850_2ee631eb9ab44b5fa0408a303cf0ea5d_7]** **[1174850_2ee631eb9ab44b5fa0408a303cf0ea5d_8]** **[1174850_2ee631eb9ab44b5fa0408a303cf0ea5d_9]** **[1174850_2ee631eb9ab44b5fa0408a303cf0ea5d_10]** **[1174850_2ee631eb9ab44b5fa0408a303cf0ea5d_11]** **[1174850_2ee631eb9ab44b5fa0408a303cf0ea5d_12]** **[1174850_0001174850-24-000043_exhibit99_13q2024pressrele.htm:0]** **[1174850_0001174850-24-000043_exhibit99_13q2024pressrele.htm:1]** **[1174850_0001174850-24-000043_exhibit99_13q2024pressrele.htm:2]** **[1174850_0001174850-24-000043_exhibit99_13q2024pressrele.htm:3]** **[1174850_0001174850-24-000043_exhibit99_13q2024pressrele.htm:4]** **[1174850_0001174850-24-000043_exhibit99_13q2024pressrele.htm:5]** **[1174850_0001174850-24-000043_exhibit99_13q2024pressrele.htm:6]** **[1174850_0001174850-24-000043_exhibit99_13q2024pressrele.htm:7]** **[1174850_0001174850-24-000043_exhibit99_13q2024pressrele.htm:8]** **[1174850_0001174850-24-000043_exhibit99_13q2024pressrele.htm:9]** **[1174850_0001174850-24-000043_nic-20241015.htm:0]** **[1174850_0001174850-24-000043_nic-20241015.htm:1]** **[1174850_0001174850-24-000043_nic-20241015.htm:2]**; Q2 2024 press release and 8-K (Jul 16, 2024) **[1174850_b18e81ad6693446694ce53aa99d15684_0]** **[1174850_b18e81ad6693446694ce53aa99d15684_1]** **[1174850_b18e81ad6693446694ce53aa99d15684_2]** **[1174850_b18e81ad6693446694ce53aa99d15684_3]** **[1174850_b18e81ad6693446694ce53aa99d15684_4]** **[1174850_b18e81ad6693446694ce53aa99d15684_5]** **[1174850_b18e81ad6693446694ce53aa99d15684_6]** **[1174850_b18e81ad6693446694ce53aa99d15684_7]** **[1174850_b18e81ad6693446694ce53aa99d15684_8]** **[1174850_b18e81ad6693446694ce53aa99d15684_9]** **[1174850_b18e81ad6693446694ce53aa99d15684_10]** **[1174850_b18e81ad6693446694ce53aa99d15684_11]** **[1174850_b18e81ad6693446694ce53aa99d15684_12]** **[1174850_0001174850-24-000033_exhibit99_12q2024pressrele.htm:0]** **[1174850_0001174850-24-000033_exhibit99_12q2024pressrele.htm:1]** **[1174850_0001174850-24-000033_exhibit99_12q2024pressrele.htm:2]** **[1174850_0001174850-24-000033_exhibit99_12q2024pressrele.htm:3]** **[1174850_0001174850-24-000033_exhibit99_12q2024pressrele.htm:4]** **[1174850_0001174850-24-000033_exhibit99_12q2024pressrele.htm:5]** **[1174850_0001174850-24-000033_exhibit99_12q2024pressrele.htm:6]** **[1174850_0001174850-24-000033_exhibit99_12q2024pressrele.htm:7]** **[1174850_0001174850-24-000033_exhibit99_12q2024pressrele.htm:8]** **[1174850_0001174850-24-000033_exhibit99_12q2024pressrele.htm:9]** **[1174850_0001174850-24-000033_exhibit99_12q2024pressrele.htm:10]** **[1174850_0001174850-24-000033_nic-20240716.htm:0]** **[1174850_0001174850-24-000033_nic-20240716.htm:1]** **[1174850_0001174850-24-000033_nic-20240716.htm:2]**; Dividend press release (Nov 19, 2024) **[1174850_d84ca1f034bf4441a97cab4b92b10efa_0]**.