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•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

Green Bay, Wisconsin, April 15, 2025 - 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.”

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.

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.

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.

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.

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.

 

(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.

(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.

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.