Nicolet Bankshares, Inc. (NIC), a leading regional bank, has r eleased its unaudited consolidated financial statements for the first quarter of 2023. The report reveals a net loss of $8.9 million during the three-month period, reflecting a challenging operating environment. The bank's revenue was also affected as net interest income declined by $3.1 million compared to the same period last year.
Net Income/Loss
During the first quarter of 2023, Nicolet Bankshares, Inc. reported a net loss of $8.9 million. This loss represents a significant decrease in profitability compared to the same period in the previous year when the bank reported a net income of $24.2 million.
Revenue
The bank's revenue was impacted by a decline in net interest income. For the three months ended March 31, 2023, net interest income stood at $56.7 million. This figure is notably lower than the $53.8 million reported during the same period in 2022, reflecting a reduction of $3.1 million.
The decrease in net interest income can be attributed to several factors, including changes in interest rates, shifts in customer deposit behavior, and a challenging lending environment.
The breakdown of interest income for the first quarter of 2023 is as follows:
Loans, including loan fees: $79.1 million
Taxable investment securities: $4.9 million
Tax-exempt investment securities: $1.7 million
Other interest income: $1.5 million
Interest expenses for the same period are as follows:
Deposits: $24.9 million
Short-term borrowings: $3.2 million
Long-term borrowings: $2.5 million
The decline in net income for the first quarter of 2023 can be partly attributed to the decrease in net interest income. The $3.1 million reduction in net interest income affected the overall profitability of Nicolet Bankshares, Inc., resulting in the reported net loss of $8.9 million for the quarter.
Additionally, the challenging lending environment, coupled with the decrease in net interest income, also impacted the bank's noninterest income, leading to a loss of $21.8 million in this category.
Despite these challenges, the bank's wealth management fee income, card interchange income, and deferred compensation plan asset market valuations showed positive contributions to noninterest income during the first quarter of 2023.
Nicolet Bankshares, Inc. remains committed to navigating the current economic landscape and implementing strategies to improve its financial performance in the coming quarters. The bank continues to focus on prudent risk management, customer-centric initiatives, and maintaining a strong capital position to withstand market uncertainties.