-- 
 Record quarterly net income of $36 million for second quarter 2025, 
      compared to net income of $33 million in prior quarter, and net income of 
      $29 million for second quarter 2024 
 
 
   -- 
 Quarterly return on average assets of 1.62%, the highest level since 
      the March 2023 balance sheet restructuring 
 
 
   -- 
 Quarterly net interest margin of 3.72%, an increase of 14 bps over the 
      first quarter 
 
 
   -- 
 Solid quarter-over-quarter loan growth of $94 million (5.6% annualized) 
      and core deposit growth of $68 million (4.1% annualized) 
 
 
   -- 
 Repurchased 257,402 common shares for $30 million during second quarter 
      2025 
 
GREEN BAY, Wis.--(BUSINESS WIRE)--July 15, 2025-- 

Nicolet Bankshares, Inc. $(NIC)$ ("Nicolet") announced record quarterly net income of $36 million for second quarter 2025 and earnings per diluted common share of $2.34, compared to net income of $33 million and earnings per diluted common share of $2.08 for first quarter 2025, and net income of $29 million and earnings per diluted common share of $1.92 for second quarter 2024.

"Our quarterly results again demonstrated strong performance and continued consistency in a volatile market," said Mike Daniels, Chairman, President, and CEO of Nicolet. "What we saw in the second quarter is a testament to the tenacity and vibrancy of our customers and the markets we serve. Loan growth continued at a healthy pace, as did core deposits. Mortgage revenues also saw their seasonal growth return, driven by housing demand in the upper Midwest. Our net interest margin continued to grow at a healthy pace as rates remained stable, and our profitability metrics are likely to place us near the top decile of community banks. Overall, it was a very solid quarter for us."

"These results aren't happening because of one or two big things, but rather a thousand little things done by nearly a thousand people who show up each day and matter to their customers and communities," Daniels continued. "I am impressed but not surprised by our mid-year results. Our people truly embrace the challenge of finding a way to make a meaningful impact. We remain focused at all levels of Nicolet to keep this momentum going and continue to create shared success for our customers, communities, shareholders, and each other."

Balance Sheet Review

At June 30, 2025, period end assets were $8.9 billion, a decrease of $44 million from March 31, 2025, mostly from lower cash balances. Total loans increased $94 million from March 31, 2025 (mostly in commercial-based loans), while total deposits of $7.5 billion at June 30, 2025, decreased $31 million from March 31, 2025, including a $99 million decrease in brokered deposits partly offset by a $68 million increase in customer (core) deposits. Long-term borrowings decreased $22 million from the prior quarter due to the redemption of a subordinated note issuance. Total capital was $1.2 billion at June 30, 2025, an increase of $7 million over March 31, 2025, with solid earnings and favorable movements in the securities portfolio market valuation partly offset by common stock repurchases and the quarterly common stock dividend.

Asset Quality

Nonperforming assets were $29 million and represented 0.32% of total assets at June 30, 2025, down slightly from 0.33% of total assets at March 31, 2025 and 0.34% of total assets at June 30, 2024. The allowance for credit losses-loans was $68 million and represented 1.00% of total loans at June 30, 2025, compared to $67 million (or 1.00% of total loans) at March 31, 2025, and $65 million (or 1.00% of total loans) at June 30, 2024. Asset quality trends remain solid and loan net charge-offs were negligible.

Income Statement Review - Quarter

Net income was $36 million for second quarter 2025, compared to net income of $33 million for first quarter 2025.

Net interest income was $75 million for second quarter 2025, $4 million higher than first quarter 2025, primarily due to solid loan growth. Interest income increased $5 million between the sequential quarters, while interest expense increased $1 million. The net interest margin for second quarter 2025 was 3.72%, up 14 bps from 3.58% for first quarter 2025. The yield on interest-earning assets increased 15 bps (to 5.82%), while the cost of interest-bearing liabilities for second quarter 2025 increased 3 bps (to 2.86%).

Noninterest income of $21 million for second quarter 2025 increased $2 million from first quarter 2025, mostly due to seasonal improvements in net mortgage income and favorable market valuations on the nonqualified deferred compensation plan assets. Wealth income decreased $0.2 million, while card interchange income increased $0.4 million.

Noninterest expense of $50 million for second quarter 2025 increased $2 million from first quarter 2025. Personnel expense increased $3 million from higher incentives (commensurate with solid quarterly earnings) and higher market valuations on the nonqualified deferred compensation plan liabilities, while non-personnel related expenses combined decreased $1 million (mostly lower marketing).

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)      6/30/2025     3/31/2025     12/31/2024    9/30/2024      6/30/2024 
                       ------------  ------------  ------------  ------------  -------------- 
Assets 
Cash and due from 
 banks                 $   129,607   $   105,085   $   115,943   $   124,076   $   109,674 
Interest-earning 
 deposits                  293,031       467,095       420,104       303,908       298,856 
                        ----------    ----------    ----------    ----------    ---------- 
   Cash and cash 
    equivalents            422,638       572,180       536,047       427,984       408,530 
Securities available 
 for sale, at fair 
 value                     849,253       838,105       806,415       825,907       799,937 
Other investments           59,594        58,627        62,125        63,632        64,720 
Loans held for sale          9,955         8,092         7,637        11,121         9,450 
Loans                    6,839,141     6,745,598     6,626,584     6,556,840     6,529,134 
Allowance for credit 
 losses - loans            (68,408)      (67,480)      (66,322)      (65,785)      (65,414) 
                        ----------    ----------    ----------    ----------    ---------- 
   Loans, net            6,770,733     6,678,118     6,560,262     6,491,055     6,463,720 
Premises and 
 equipment, net            123,723       125,274       126,979       123,585       120,988 
Bank owned life 
 insurance ("BOLI")        189,342       187,902       186,448       185,011       171,972 
Goodwill and other 
 intangibles, net          385,107       386,588       388,140       389,727       391,421 
Accrued interest 
 receivable and other 
 assets                    120,464       120,336       122,742       119,096       126,279 
                        ----------    ----------    ----------    ----------    ---------- 
      Total assets     $ 8,930,809   $ 8,975,222   $ 8,796,795   $ 8,637,118   $ 8,557,017 
                        ==========    ==========    ==========    ==========    ========== 
 
Liabilities and 
Stockholders' 
Equity 
Liabilities: 
Noninterest-bearing 
 demand deposits       $ 1,800,335   $ 1,689,129   $ 1,791,228   $ 1,839,617   $ 1,764,806 
Interest-bearing 
 deposits                5,741,338     5,883,061     5,612,456     5,420,380     5,476,272 
                        ----------    ----------    ----------    ----------    ---------- 
      Total deposits     7,541,673     7,572,190     7,403,684     7,259,997     7,241,078 
Long-term borrowings       134,340       156,563       161,387       161,210       162,433 
Accrued interest 
 payable and other 
 liabilities                64,698        63,201        58,826        66,584        62,093 
                        ----------    ----------    ----------    ----------    ---------- 
   Total liabilities     7,740,711     7,791,954     7,623,897     7,487,791     7,465,604 

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