Net income $33 million for first quarter 2025, compared to net income of $34 million in prior quarter, and net income of $28 million for first quarter 2024
Solid loan growth of $119 million (2%) from year end 2024
Core deposits increased $62 million (1%) from year end 2024
Repurchased 233,207 common shares for $26 million during first quarter 2025, and authorized $60 million in additional repurchases

Nicolet Bankshares, Inc. (NYSE:NIC) ("Nicolet") announced first quarter 2025 net income of $33 million and earnings per diluted common share of $2.08, compared to net income of $34 million and earnings per diluted common share of $2.19 for fourth quarter 2024, and net income of $28 million and earnings per diluted common share of $1.82 for first quarter 2024.

"Our first quarter profitability metrics likely place us well within the top quartile of community banks and these results continue to demonstrate that our actions match our words as discussed in our annual report letter," said Mike Daniels, Chairman, President, and CEO of Nicolet. "We are growing core relationships in all revenue lines, and we are especially encouraged that our typical seasonal decline in core deposits was much less than in prior years. We are also encouraged that our growth is occurring in a disciplined manner. Even with the recent public market volatility and uncertainty, our team is doing what we do best – having real conversations with customers and figuring out how to matter to them and our communities."

Daniels continued, "while we continue to have high-level M&A conversations, we remain steadfast in our belief that any deal needs to make Nicolet a better bank and enhance long-term shareholder value. Given the market uncertainty, we believe it makes sense to allow the dust to settle. In the meantime, our Board increased our stock buyback authorization, and affirmed that the best acquisition we can make – regardless of any market volatility – is in our own company through share repurchases."

Balance Sheet Review

At March 31, 2025, period end assets were $9.0 billion, an increase of $178 million (2%) from December 31, 2024, mostly from loan growth. Total loans increased $119 million from December 31, 2024, mostly in commercial & industrial loans. Total deposits of $7.6 billion at March 31, 2025, increased $169 million from December 31, 2024, including a $107 million increase in brokered deposits and a $62 million increase in customer (core) deposits. Total capital was $1.2 billion at March 31, 2025, an increase of $10 million over December 31, 2024, with solid earnings and favorable movements in the securities portfolio market valuation partly offset by common stock repurchases and the quarterly common stock dividend. At March 31, 2025, approximately $10 million remained available for common stock repurchases under the current board authorization. Subsequently, on April 15, 2025, the Board approved a $60 million increase to the common stock repurchase authorization.

Asset Quality

Nonperforming assets were $29 million and represented 0.33% of total assets at March 31, 2025, minimally changed from both December 31, 2024 and March 31, 2024. The allowance for credit losses-loans was $67 million and represented 1.00% of total loans at March 31, 2025, compared to $66 million (or 1.00% of total loans) at December 31, 2024, and $64 million (or 1.01% of total loans) at March 31, 2024. Asset quality trends remain solid and loan net charge-offs were negligible.

Income Statement Review - Quarter

Net income was $33 million for first quarter 2025, compared to net income of $34 million for fourth quarter 2024.

Net interest income was $71 million for first quarter 2025, down slightly from fourth quarter 2024, mostly due to higher interest expense from deposit growth, with average interest-bearing deposits up $285 million (5%) over fourth quarter. The net interest margin for first quarter 2025 was 3.58%, down 3 bps from 3.61% for fourth quarter 2024. The yield on interest-earning assets decreased 1 bps (to 5.67%), while the cost of interest-bearing liabilities for first quarter 2025 decreased 7 bps (to 2.83%) due to lower deposit costs and decreased 9 bps due to lower noninterest-bearing demand deposits.

Noninterest income of $18 million for first quarter 2025 decreased $3 million from fourth quarter 2024, mostly due to seasonably lower net mortgage income from fewer secondary market sales. Wealth income decreased $0.2 million, while other noninterest income declined $0.3 million on lower swap fees. Net asset gains were $0.9 million unfavorable, mostly from changes in the market value of equity securities.

Noninterest expense of $48 million for first quarter 2025 was down slightly from fourth quarter 2024. Occupancy, equipment, and office expense increased $0.6 million on higher software and snowplowing costs, while marketing declined $0.2 million due to donations to support capital campaigns within our communities in fourth quarter 2024 and other noninterest expense declined $0.4 million mostly within legal and professional fees.

About Nicolet Bankshares, Inc.

Nicolet Bankshares, Inc. is the bank holding company of Nicolet National Bank, a growing, full-service, community bank providing services ranging from commercial, agricultural and consumer banking to wealth management and retirement plan services. Founded in Green Bay in 2000, Nicolet National Bank operates branches primarily in Wisconsin, Michigan, and Minnesota. More information can be found at www.nicoletbank.com.

Use of Non-GAAP Financial Measures

This communication contains non-GAAP financial measures, such as non-GAAP adjusted net income, non-GAAP adjusted earnings per diluted common share, tangible book value per common share, return on average tangible common equity, and tangible common equity to tangible assets. Management believes such measures to be helpful to management, investors and others in understanding Nicolet's results of operations and financial position. When non-GAAP financial measures are used, the comparable GAAP financial measures, as well as the reconciliation of the non-GAAP measures to the GAAP financial measures, are provided. See "Reconciliation of Non-GAAP Financial Measures (Unaudited)" below. The non-GAAP net income measure and related reconciliation provide information useful to investors in understanding the operating performance and trends of Nicolet and also aid investors in comparing Nicolet's financial performance to the financial performance of peer banks. Management considers non-GAAP financial ratios to be critical metrics with which to analyze and evaluate financial condition and capital strengths. While non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of results as reported under GAAP.

Nicolet Bankshares, Inc.
Consolidated Balance Sheets (Unaudited)
(In thousands, except share data)	3/31/2025			12/31/2024			9/30/2024			6/30/2024			3/31/2024
Assets
Cash and due from banks	$	105,085		$	115,943		$	124,076		$	109,674		$	81,677
Interest-earning deposits		467,095			420,104			303,908			298,856			345,747
Cash and cash equivalents		572,180			536,047			427,984			408,530			427,424
Securities available for sale, at fair value		838,105			806,415			825,907			799,937			803,963
Other investments		58,627			62,125			63,632			64,720			66,103
Loans held for sale		8,092			7,637			11,121			9,450			5,022
Loans		6,745,598			6,626,584			6,556,840			6,529,134			6,397,617
Allowance for credit losses - loans		(67,480	)		(66,322	)		(65,785	)		(65,414	)		(64,347	)
Loans, net		6,678,118			6,560,262			6,491,055			6,463,720			6,333,270
Premises and equipment, net		125,274			126,979			123,585			120,988			119,962
Bank owned life insurance ("BOLI")		187,902			186,448			185,011			171,972			170,746
Goodwill and other intangibles, net		386,588			388,140			389,727			391,421			393,183
Accrued interest receivable and other assets		120,336			122,742			119,096			126,279			126,989
Total assets	$	8,975,222		$	8,796,795		$	8,637,118		$	8,557,017		$	8,446,662

Liabilities and Stockholders' Equity
Liabilities:
Noninterest-bearing demand deposits	$	1,689,129		$	1,791,228		$	1,839,617		$	1,764,806		$	1,665,229
Interest-bearing deposits		5,883,061			5,612,456			5,420,380			5,476,272			5,500,503
Total deposits		7,572,190			7,403,684			7,259,997			7,241,078			7,165,732
Long-term borrowings		156,563			161,387			161,210			162,433			162,257
Accrued interest payable and other liabilities		63,201			58,826			66,584			62,093			55,018
Total liabilities		7,791,954			7,623,897			7,487,791			7,465,604			7,383,007
Stockholders' Equity:
Common stock		152			154			151			150			149
Additional paid-in capital		630,340			655,540			647,934			639,159			636,621
Retained earnings		594,068			565,772			535,638			507,366			482,295
Accumulated other comprehensive income (loss)		(41,292	)		(48,568	)		(34,396	)		(55,262	)		(55,410	)
Total stockholders' equity		1,183,268			1,172,898			1,149,327			1,091,413			1,063,655
Total liabilities and stockholders' equity	$	8,975,222		$	8,796,795		$	8,637,118		$	8,557,017		$	8,446,662

Common shares outstanding		15,149,341			15,356,785			15,104,381			14,945,598			14,930,549

Nicolet Bankshares, Inc.
Consolidated Statements of Income (Unaudited)
	For the Three Months Ended
(In thousands, except per share data)	3/31/2025			12/31/2024			9/30/2024		6/30/2024		3/31/2024
Interest income:
Loans, including loan fees	$	100,666		$	100,605		$	100,824	$	97,975	$	93,648
Taxable investment securities		5,560			5,369			5,211		5,056		4,557
Tax-exempt investment securities		1,049			1,073			1,095		1,152		1,238
Other interest income		5,466			5,787			5,492		4,695		4,588
Total interest income		112,741			112,834			112,622		108,878		104,031
Interest expense:
Deposits		39,465			39,138			42,060		41,386		38,990
Short-term borrowings		—			—			2		—		—
Long-term borrowings		2,070			2,146			2,194		2,150		2,234
Total interest expense		41,535			41,284			44,256		43,536		41,224
Net interest income		71,206			71,550			68,366		65,342		62,807
Provision for credit losses		1,500			1,000			750		1,350		750
Net interest income after provision for credit losses		69,706			70,550			67,616		63,992		62,057
Noninterest income:
Wealth management fee income		6,975			7,208			7,085		6,674		6,485
Mortgage income, net		1,926			3,326			2,853		2,634		1,364
Service charges on deposit accounts		2,025			1,877			1,913		1,813		1,581
Card interchange income		3,337			3,541			3,564		3,458		3,098
BOLI income		1,420			1,421			1,455		1,225		1,347
Asset gains (losses), net		(354	)		510			1,177		616		1,909
Deferred compensation plan asset market valuations		45			(192	)		1,162		169		59
LSR income, net		1,057			1,064			1,090		1,117		1,134
Other noninterest income		1,792			2,103			2,079		1,903		2,445
Total noninterest income		18,223			20,858			22,378		19,609		19,422
Noninterest expense:
Personnel expense		26,521			26,682			28,937		26,285		26,510
Occupancy, equipment and office		9,330			8,685			8,826		8,681		8,944
Business development and marketing		2,100			2,325			1,823		2,040		2,142
Data processing		4,525			4,668			4,535		4,281		4,270
Intangibles amortization		1,552			1,587			1,694		1,762		1,833
FDIC assessments		940			990			990		990		1,033
Other noninterest expense		2,819			3,268			2,343		2,814		2,415
Total noninterest expense		47,787			48,205			49,148		46,853		47,147
Income before income tax expense		40,142			43,203			40,846		36,748		34,332
Income tax expense		7,550			8,723			8,330		7,475		6,542
Net income	$	32,592		$	34,480		$	32,516	$	29,273	$	27,790
Earnings per common share:
Basic	$	2.14		$	2.25		$	2.16	$	1.96	$	1.86
Diluted	$	2.08		$	2.19		$	2.10	$	1.92	$	1.82
Common shares outstanding:
Basic weighted average		15,256			15,297			15,052		14,937		14,907
Diluted weighted average		15,647			15,710			15,479		15,276		15,249

Nicolet Bankshares, Inc.
Consolidated Financial Summary (Unaudited)
	For the Three Months Ended
(In thousands, except share & per share data)	3/31/2025			12/31/2024			9/30/2024			6/30/2024			3/31/2024
Selected Average Balances:
Loans	$	6,710,206		$	6,581,059		$	6,542,532		$	6,496,732		$	6,398,838
Investment securities		886,010			884,376			873,212			881,190			884,775
Interest-earning assets		8,078,997			7,946,309			7,824,773			7,733,097			7,629,120
Cash and cash equivalents		497,865			493,237			431,632			374,176			364,375
Goodwill and other intangibles, net		387,260			388,824			390,453			392,171			393,961
Total assets		8,849,412			8,716,611			8,596,812			8,481,186			8,380,595
Deposits		7,446,107			7,314,632			7,247,321			7,183,777			7,112,971
Interest-bearing liabilities		5,953,083			5,667,803			5,653,259			5,658,642			5,509,882
Stockholders' equity (common)		1,178,868			1,163,477			1,118,242			1,070,379			1,048,596
Selected Ratios: ⁽¹⁾
Book value per common share	$	78.11		$	76.38		$	76.09		$	73.03		$	71.24
Tangible book value per common share⁽²⁾	$	52.59		$	51.10		$	50.29		$	46.84		$	44.91
Return on average assets		1.49	%		1.57	%		1.50	%		1.39	%		1.33	%
Return on average common equity		11.21			11.79			11.57			11.00			10.66
Return on average tangible common equity ⁽²⁾		16.70			17.71			17.77			17.36			17.07
Average equity to average assets		13.32			13.35			13.01			12.62			12.51
Stockholders' equity to assets		13.18			13.33			13.31			12.75			12.59
Tangible common equity to tangible assets⁽²⁾		9.28			9.33			9.21			8.57			8.33
Net interest margin *		3.58			3.61			3.51			3.42			3.33
Efficiency ratio		52.94			52.17			54.57			55.24			58.34
Effective tax rate		18.81			20.19			20.39			20.34			19.06
Selected Asset Quality Information:
Nonaccrual loans	$	28,325		$	28,419		$	25,565		$	27,838		$	26,677
Other real estate owned		946			693			859			1,147			1,245
Nonperforming assets	$	29,271		$	29,112		$	26,424		$	28,985		$	27,922
Net loan charge-offs (recoveries)	$	342		$	363		$	379		$	283		$	13
Allowance for credit losses-loans to loans		1.00	%		1.00	%		1.00	%		1.00	%		1.01	%
Net charge-offs to average loans ⁽¹⁾		0.02			0.02			0.02			0.02			0.00
Nonperforming loans to total loans		0.42			0.43			0.39			0.43			0.42
Nonperforming assets to total assets		0.33			0.33			0.31			0.34			0.33
Stock Repurchase Information: ⁽³⁾
Common stock repurchased ($)	$	26,047		$	10,137		$	—		$	—		$	—
Common stock repurchased (shares)		233,207			92,440			—			—			—

* During fourth quarter 2024, Nicolet changed the annualization methodology utilized for the calculation of net interest margin from actual/360 to actual/actual to be more consistent with the methodology typically used by peer banks and to cause quarterly results to be more consistent with annual results. Prior periods have been restated for this change in methodology. There was no change to the reported average balances or interest recognized.
(1)		Income statement-related ratios for partial-year periods are annualized.
(2)		See Reconciliation of Non-GAAP Financial Measures below for a reconciliation of these financial measures.
(3)		Reflects common stock repurchased under board of director authorizations for the common stock repurchase program.

Nicolet Bankshares, Inc.
Consolidated Loan & Deposit Metrics (Unaudited)
(In thousands)	3/31/2025		12/31/2024		9/30/2024		6/30/2024		3/31/2024
Period End Loan Composition
Commercial & industrial	$	1,409,320	$	1,319,763	$	1,351,516	$	1,358,152	$	1,307,490
Owner-occupied commercial real estate ("CRE")		949,107		940,367		920,533		941,137		955,786
Agricultural		1,329,807		1,322,038		1,261,152		1,224,885		1,190,371
Commercial		3,688,234		3,582,168		3,533,201		3,524,174		3,453,647
CRE investment		1,225,490		1,221,826		1,226,982		1,198,020		1,188,722
Construction & land development		273,007		239,694		231,694		247,565		241,730
Commercial real estate		1,498,497		1,461,520		1,458,676		1,445,585		1,430,452
Commercial-based loans		5,186,731		5,043,688		4,991,877		4,969,759		4,884,099
Residential construction		91,321		96,110		85,811		90,904		84,370
Residential first mortgage		1,194,116		1,196,158		1,194,574		1,190,790		1,167,069
Residential junior mortgage		235,096		234,634		223,456		218,512		206,434
Residential real estate		1,520,533		1,526,902		1,503,841		1,500,206		1,457,873
Retail & other		38,334		55,994		61,122		59,169		55,645
Retail-based loans		1,558,867		1,582,896		1,564,963		1,559,375		1,513,518
Total loans	$	6,745,598	$	6,626,584	$	6,556,840	$	6,529,134	$	6,397,617

Period End Deposit Composition
Noninterest-bearing demand	$	1,689,129	$	1,791,228	$	1,839,617	$	1,764,806	$	1,665,229
Interest-bearing demand		1,239,075		1,168,560		1,035,593		1,093,621		1,121,030
Money market		1,988,648		1,942,367		1,928,977		1,963,559		2,027,559
Savings		794,223		774,707		763,024		762,529		765,084
Time		1,861,115		1,726,822		1,692,786		1,656,563		1,586,830
Total deposits	$	7,572,190	$	7,403,684	$	7,259,997	$	7,241,078	$	7,165,732
Brokered transaction accounts	$	249,537	$	163,580	$	159,547	$	250,109	$	265,818
Brokered time deposits		607,725		586,852		549,907		557,657		517,190
Total brokered deposits	$	857,262	$	750,432	$	709,454	$	807,766	$	783,008
Customer transaction accounts	$	5,461,538	$	5,513,282	$	5,407,664	$	5,334,406	$	5,313,085
Customer time deposits		1,253,390		1,139,970		1,142,879		1,098,906		1,069,639
Total customer deposits (core)	$	6,714,928	$	6,653,252	$	6,550,543	$	6,433,312	$	6,382,724

Nicolet Bankshares, Inc.
Net Interest Income and Net Interest Margin Analysis (Unaudited)

	For the Three Months Ended
	March 31, 2025							December 31, 2024							March 31, 2024
	Average					Average		Average					Average		Average					Average
(In thousands)	Balance		Interest			Rate *		Balance		Interest			Rate *		Balance		Interest			Rate *
ASSETS
Total loans ^{(1) (2)}	$	6,710,206	$	100,804		6.08	%	$	6,581,059	$	100,759		6.10	%	$	6,398,838	$	93,744		5.89	%
Investment securities ⁽²⁾		886,010		6,951		3.14	%		884,376		6,795		3.07	%		884,775		6,197		2.80	%
Other interest-earning assets		482,781		5,466		4.58	%		480,874		5,787		4.79	%		345,507		4,588		5.34	%
Total interest-earning assets		8,078,997	$	113,221		5.67	%		7,946,309	$	113,341		5.68	%		7,629,120	$	104,529		5.50	%
Other assets, net		770,415							770,302							751,475
Total assets	$	8,849,412						$	8,716,611						$	8,380,595
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing core deposits	$	5,001,535	$	30,783		2.50	%	$	4,783,675	$	30,754		2.56	%	$	4,664,670	$	31,256		2.69	%
Brokered deposits		790,460		8,682		4.45	%		722,827		8,384		4.61	%		680,124		7,734		4.57	%
Total interest-bearing deposits		5,791,995		39,465		2.76	%		5,506,502		39,138		2.83	%		5,344,794		38,990		2.93	%
Wholesale funding		161,088		2,070		5.21	%		161,301		2,146		5.29	%		165,088		2,234		5.44	%
Total interest-bearing liabilities		5,953,083	$	41,535		2.83	%		5,667,803	$	41,284		2.90	%		5,509,882	$	41,224		3.01	%
Noninterest-bearing demand deposits		1,654,112							1,808,130							1,768,177
Other liabilities		63,349							77,201							53,940
Stockholders' equity		1,178,868							1,163,477							1,048,596
Total liabilities and stockholders' equity	$	8,849,412						$	8,716,611						$	8,380,595
Net interest income and rate spread			$	71,686		2.84	%			$	72,057		2.78	%			$	63,305		2.49	%
Net interest margin						3.58	%						3.61	%						3.33	%
Loan purchase accounting accretion⁽³⁾			$	1,475		0.09	%			$	1,475		0.09	%			$	1,527		0.09	%
Loan nonaccrual interest ⁽⁴⁾			$	(304	)	(0.02	)%			$	(458	)	(0.03	)%			$	(241	)	(0.02	)%

* During fourth quarter 2024, Nicolet changed the annualization methodology utilized for the calculation of net interest margin from actual/360 to actual/actual to be more consistent with the methodology typically used by peer banks and to cause quarterly results to be more consistent with annual results. Prior periods have been restated for this change in methodology. There was no change to the reported average balances or interest recognized.
(1)		Nonaccrual loans and loans held for sale are included in the daily average loan balances outstanding.
(2)		The yield on tax-exempt loans and tax-exempt investment securities is computed on a tax-equivalent basis using a federal tax rate of 21%, and adjusted for the disallowance of interest expense.
(3)		Loan purchase accounting accretion included in Total loans interest above, and the related impact to net interest margin.
(4)		Loan nonaccrual interest included in Total loans interest above, and the related impact to net interest margin.

Nicolet Bankshares, Inc.
Reconciliation of Non-GAAP Financial Measures (Unaudited)
	For the Three Months Ended
(In thousands, except per share data)	3/31/2025		12/31/2024			9/30/2024			6/30/2024			3/31/2024
Adjusted net income reconciliation: ⁽¹⁾
Net income (GAAP)	$	32,592	$	34,480		$	32,516		$	29,273		$	27,790
Adjustments:
Assets (gains) losses, net ⁽²⁾		354		(510	)		(1,177	)		(616	)		(1,909	)
Adjustments subtotal		354		(510	)		(1,177	)		(616	)		(1,909	)
Tax on Adjustments ⁽³⁾		69		(99	)		(230	)		(120	)		(372	)
Adjusted net income (Non-GAAP)	$	32,877	$	34,069		$	31,569		$	28,777		$	26,253
Diluted earnings per common share:
Diluted earnings per common share (GAAP)	$	2.08	$	2.19		$	2.10		$	1.92		$	1.82
Adjusted Diluted earnings per common share (Non-GAAP)	$	2.10	$	2.17		$	2.04		$	1.88		$	1.72
Tangible assets: ⁽⁴⁾
Total assets	$	8,975,222	$	8,796,795		$	8,637,118		$	8,557,017		$	8,446,662
Goodwill and other intangibles, net		386,588		388,140			389,727			391,421			393,183
Tangible assets	$	8,588,634	$	8,408,655		$	8,247,391		$	8,165,596		$	8,053,479
Tangible common equity: ⁽⁴⁾
Stockholders' equity (common)	$	1,183,268	$	1,172,898		$	1,149,327		$	1,091,413		$	1,063,655
Goodwill and other intangibles, net		386,588		388,140			389,727			391,421			393,183
Tangible common equity	$	796,680	$	784,758		$	759,600		$	699,992		$	670,472
Tangible average common equity: ⁽⁴⁾
Average stockholders' equity (common)	$	1,178,868	$	1,163,477		$	1,118,242		$	1,070,379		$	1,048,596
Average goodwill and other intangibles, net		387,260		388,824			390,453			392,171			393,961
Average tangible common equity	$	791,608	$	774,653		$	727,789		$	678,208		$	654,635

Note: Numbers may not sum due to rounding.
(1)		The adjusted net income measure and related reconciliation provide information useful to investors in understanding the operating performance and trends of Nicolet and also to aid investors in the comparison of Nicolet's financial performance to the financial performance of peer banks.
(2)		Includes the gains / (losses) on other assets and investments.
(3)		Assumes an effective tax rate of 19.5%.
(4)		The ratios of tangible book value per common share, return on average tangible common equity, and tangible common equity to tangible assets exclude goodwill and other intangibles, net. These financial ratios have been included as they are considered to be critical metrics with which to analyze and evaluate financial condition and capital strength.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250415218518/en/

ir@nicoletbank.com

Nicolet Bankshares, Inc. Announces First Quarter 2025 Results