Nicolet Bankshares, Inc. Announces Record Earnings

GREEN BAY, Wis.--( BUSINESS WIRE)--Nicolet Bankshares, Inc. (NYSE: NIC) (“Nicolet”) announced record net income of $151 million and earnings per diluted common share of $9.78 for full year 2025, compared to net income of $124 million and earnings per diluted common share of $8.05 for full year 2024. Net income for fourth quarter 2025 was $40 million and earnings per diluted common share was $2.65, compared to net income of $42 million and earnings per diluted common share of $2.73 for third quarter 2025, and net income of $34 million and earnings per diluted common share of $2.19 for fourth quarter 2024.

“2025 was a defining year for Nicolet. We delivered record earnings and earnings per share while exceeding our targets across nearly every key performance metric. This performance likely places us among the top performing community banks in the country and reflects disciplined execution and a relentless focus on fundamentals,” said Mike Daniels, Chairman, President, and CEO of Nicolet. “Delivering record net income while expanding our net interest margin and growing core deposits reflects the strength of our core community bank franchise and the trust our customers place in us. We believe our model—rooted in community banking and long-term thinking—positions us well for the opportunities ahead in 2026, including welcoming the customers and employees of MidWestOne.”

“We expect to close the transaction with MidWestOne in the first quarter, following receipt of regulatory and shareholder approvals,” Daniels continued. “However, that’s when the real work of the acquisition begins – the melding of two similar cultures and geographies into one. Based on what I’ve seen thus far through the integration planning process, I am more excited by this combination than I ever have been. I have sensed nothing but excitement from the people across MidWestOne, and have little doubt our two teams of employees will come together as one very quickly while we work through the integration process over the next several months to continue to deliver shared success to our three circles - shareholders, customers and employees.”

Balance Sheet Review

At December 31, 2025, period end assets were $9.2 billion, an increase of $156 million from September 30, 2025, mostly higher cash balances related to deposit growth. Total loans decreased $38 million from September 30, 2025, while total deposits of $7.7 billion at December 31, 2025, increased $119 million from September 30, 2025, including a $144 million increase in customer (core) deposits, partly offset by a $25 million decrease in brokered deposits. Total capital was $1.3 billion at December 31, 2025, an increase of $43 million over September 30, 2025, with solid earnings and favorable movements in the securities portfolio market valuation partly offset by the quarterly common stock dividend.

Asset Quality

Nonperforming assets were $32 million and represented 0.35% of total assets at December 31, 2025, compared to 0.31% of total assets at September 30, 2025 and 0.33% of total assets at December 31, 2024. The allowance for credit losses-loans was $69 million and represented 1.01% of total loans at December 31, 2025, compared to $69 million (or 1.00% of total loans) at September 30, 2025, and $66 million (or 1.00% of total loans) at December 31, 2024. Asset quality trends remain solid and loan net charge-offs were negligible.

Income Statement Review - Year

Net income was $151 million for the year ended December 31, 2025, compared to net income of $124 million for the year ended December 31, 2024.

Net interest income was $306 million for the year ended December 31, 2025, $38 million higher than the year ended December 31, 2024, attributable to both favorable rates and favorable volumes. Interest income of $471 million for full year 2025 increased over 2024, mostly due to loan growth, while interest expense decreased $6 million as deposit growth was more than offset by lower overall deposit rates. The net interest margin for full year 2025 was 3.76%, an increase of 29 bps over 3.47% for full year 2024. The yield on interest-earning assets increased 10 bps (to 5.76%), while the cost of interest-bearing liabilities decreased 27 bps (to 2.76%).

Noninterest income of $86 million for full year 2025 increased $3 million over full year 2024, with growth in most core noninterest income categories, partly offset by lower net asset gains (losses). Excluding the net asset gains (losses), noninterest income for full year 2025 increased $6 million over 2024, including $2 million higher wealth management fee income and $2 million higher net mortgage income.

Noninterest expense of $201 million for full year 2025 increased $9 million over full year 2024. Personnel expense increased $7 million, including higher incentives commensurate with record net income as well as annual merit increases between the years. Non-personnel expenses combined increased $2 million mostly from higher occupancy and merger-related expenses, partly offset by lower intangible amortization.

Income Statement Review - Quarter

Net income was $40 million for fourth quarter 2025, compared to net income of $42 million for third quarter 2025.

Net interest income was $81 million for fourth quarter 2025, $2 million higher than third quarter 2025, primarily due to a reduction in average funding costs from recent interest rate cuts. Interest income was minimally changed between the sequential quarters with growth in average earning assets offset by lower rates, while interest expense decreased $2 million. The net interest margin for fourth quarter 2025 was 3.86%, unchanged from third quarter 2025. The yield on interest-earning assets decreased 13 bps (to 5.72%), while the cost of interest-bearing liabilities for fourth quarter 2025 decreased 15 bps (to 2.61%).

Noninterest income of $23 million for fourth quarter 2025 decreased $1 million from third quarter 2025, mostly due to a $0.9 million unfavorable change in net asset gains from equity security market valuations. Excluding the net asset gains, noninterest income for third quarter increased $0.3 million over the prior quarter, primarily due to a $0.6 million increase in wealth income.

Noninterest expense of $53 million for fourth quarter 2025 increased $3 million from third quarter 2025, and was comprised of a $0.8 million increase in personnel expense and a $2.2 million increase in non-personnel related expenses. The increase in non-personnel expenses was mostly due to merger-related expenses.

Declaration of Quarterly Cash Dividend to Shareholders

Nicolet’s Board of Directors has declared a quarterly cash dividend of $0.32 per share to shareholders of its common stock. The dividend will be payable on March 16, 2026, to shareholders of record as of March 2, 2026.

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.

Forward Looking Statements “Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995

This communication contains statements that constitute “forward-looking statements” within the meaning, and subject to the protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. Such statements include, but are not limited to, statements related to the expected timing of the proposed merger between Nicolet and MidWestOne Financial Group, Inc. (“MidWestOne”) and the expected speed of the integration process, and other statements that may not be historical facts. You can identify these forward-looking statements through the use of words such as “anticipate,” “believe,” “assume,” “aim,” “can,” “conclude,” “continue,” “could,” “estimate,” “expect,” “foresee,” “goal,” “intend,” “may,” “might,” “outlook,” “possible,” “plan,” “predict,” “project,” “potential,” “seek,” “should,” “target,” “will,” “will likely,” “would,” or the negative of these terms or other comparable terminology, as well as similar expressions of the future or otherwise regarding the outlook for Nicolet’s, MidWestOne’s or the combined company’s future businesses and financial performance and/or the performance of the banking industry and economy in general.

Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and express only management’s beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management’s control or predict. A number of factors could cause actual results and outcomes to differ materially from those contemplated by these forward-looking statements. These factors include, but are not limited to: (1) the risk that integration of MidWestOne’s and Nicolet’s respective businesses will be materially delayed or will be more costly or difficult than expected, including as a result of unexpected factors or events; (2) the parties’ inability to meet expectations regarding the timing of the proposed merger; (3) the failure to obtain the necessary approvals by the shareholders of Nicolet or MidWestOne; (4) the inability of either Nicolet or MidWestOne to obtain required governmental approvals of the proposed transaction on the timeline expected, or at all, and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company after the closing of the proposed transaction or adversely affect the expected benefits of the proposed transaction; (5), the failure to satisfy other conditions to completion of the proposed merger, or any unexpected delay in closing the proposed transaction or the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; and (6) the outcome of any legal or regulatory proceedings or governmental inquiries or investigations that may be currently pending or later instituted against Nicolet, MidWestOne or the combined company.

All forward-looking statements included in this communication are made as of the date hereof and are based on information available to management at that time. Except as required by law, Nicolet does not assume any obligation to update any forward-looking statement to reflect events or circumstances that occur after the date the forward-looking statements were made.

Important Information About the Merger and Where to Find It

This communication includes information relating to the proposed merger transaction involving Nicolet and MidWestOne. In connection with the proposed merger, Nicolet has filed with the Securities and Exchange Commission (the “SEC”) a registration statement on Form S-4 that includes a joint proxy statement/prospectus and other relevant documents concerning the merger. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS FILED OR TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED MERGER OR INCORPORATED BY REFERENCE IN THE JOINT PROXY STATEMENT/PROSPECTUS BECAUSE SUCH DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION ABOUT NICOLET, MIDWESTONE AND THE PROPOSED MERGER. Investors may obtain copies of the joint proxy statement/prospectus and other relevant documents (as they become available) free of charge at the SEC’s website ( www.sec.gov). Copies of the documents filed with the SEC by Nicolet will be available free of charge on Nicolet’s website at www.nicoletbank.com. Copies of the documents filed with the SEC by MidWestOne will be available free of charge on MidWestOne’s website at www.midwestonefinancial.com/financials/sec-filings.

Participants in Solicitation

Nicolet, MidWestOne, and their respective directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from the shareholders of Nicolet and the shareholders of MidWestOne in connection with the proposed merger. Information about the directors and executive officers of Nicolet is available in Nicolet’s proxy statement for its 2025 annual meeting of shareholders, which was filed with the SEC on March 18, 2025, and in other documents subsequently filed by Nicolet with the SEC, which can be obtained free of charge through the website maintained by the SEC. Any changes in the holdings of Nicolet’s securities by its directors or executive officers from the amounts described in the Nicolet 2025 Proxy have been or will be reflected on Initial Statements of Beneficial Ownership of Securities on Form 3 or on Statements of Change in Ownership on Form 4 filed with the SEC subsequent to the filing date of the Nicolet 2025 Proxy and are available at the SEC’s website. Information about the directors and executive officers of MidWestOne is available in MidWestOne’s proxy statement for its 2025 annual meeting of shareholders, which was filed with the SEC on March 11, 2025 (the “MidWestOne 2025 Proxy”) and in the MidWestOne Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 25, 2025 and in other documents subsequently filed by MidWestOne with the SEC, which can be obtained free of charge through the website maintained by the SEC. Any changes in the holdings of MidWestOne’s securities by its directors or executive officers from the amounts described in the MidWestOne 2025 Proxy have been or will be reflected on Initial Statements of Beneficial Ownership of Securities on Form 3 or on Statements of Change in Ownership on Form 4 filed with the SEC subsequent to the filing date of the MidWestOne 2025 Proxy and are available at the SEC’s website. Additional information regarding the interests of such participants and other persons who may be deemed participants in the transaction will be included in the joint proxy statement/prospectus and the other relevant documents to be filed with the SEC.

No Offer or Solicitation

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Nicolet Bankshares, Inc.

Consolidated Balance Sheets (Unaudited)

(In thousands, except share data)

12/31/2025

9/30/2025

6/30/2025

3/31/2025

12/31/2024

Assets

Cash and due from banks

107,956

94,402

129,607

105,085

115,943

Interest-earning deposits

552,276

379,555

293,031

467,095

420,104

Cash and cash equivalents

660,232

473,957

422,638

572,180

536,047

Securities available for sale, at fair value

859,834

861,534

849,253

838,105

806,415

Other investments

63,247

61,380

59,594

58,627

62,125

Loans held for sale

13,620

11,308

9,955

8,092

7,637

Loans

6,836,345

6,874,711

6,839,141

6,745,598

6,626,584

Allowance for credit losses - loans

(68,806

)

(68,785

)

(68,408

)

(67,480

)

(66,322

)

Loans, net

6,767,539

6,805,926

6,770,733

6,678,118

6,560,262

Premises and equipment, net

120,462

121,711

123,723

125,274

126,979

Bank owned life insurance (“BOLI”)

192,498

190,979

189,342

187,902

186,448

Goodwill and other intangibles, net

382,400

383,693

385,107

386,588

388,140

Accrued interest receivable and other assets

125,275

118,942

120,464

120,336

122,742

Total assets

9,185,107

9,029,430

8,930,809

8,975,222

8,796,795

Liabilities and Stockholders' Equity

Liabilities:

Noninterest-bearing demand deposits

1,828,928

1,826,453

1,800,335

1,689,129

1,791,228

Interest-bearing deposits

5,901,843

5,785,012

5,741,338

5,883,061

5,612,456

Total deposits

7,730,771

7,611,465

7,541,673

7,572,190

7,403,684

Long-term borrowings

134,860

134,600

134,340

156,563

161,387

Accrued interest payable and other liabilities

61,814

68,405

64,698

63,201

58,826

Total liabilities

7,927,445

7,814,470

7,740,711

7,791,954

7,623,897

Stockholders' Equity:

Common stock

148

149

152

154

Additional paid-in capital

583,257

581,815

601,625

630,340

655,540

Retained earnings

697,799

662,252

625,243

594,068

565,772

Accumulated other comprehensive income (loss)

(23,542

)

(29,255

)

(36,919

)

(41,292

)

(48,568

)

Total stockholders' equity

1,257,662

1,214,960

1,190,098

1,183,268

1,172,898

Total liabilities and stockholders' equity

9,185,107

9,029,430

8,930,809

8,975,222

8,796,795

Common shares outstanding

14,811,445

14,798,895

14,924,086

15,149,341

15,356,785

Nicolet Bankshares, Inc.

Consolidated Statements of Income (Unaudited)

For the Three Months Ended

For the Years Ended

(In thousands, except per share data)

12/31/2025

9/30/2025

6/30/2025

3/31/2025

12/31/2024

12/31/2025

12/31/2024

Interest income:

Loans, including loan fees

106,579

107,930

105,976

100,666

100,605

421,151

393,052

Taxable investment securities

6,294

6,201

6,027

5,560

5,369

24,082

20,193

Tax-exempt investment securities

972

998

1,017

1,049

1,073

4,036

4,558

Other interest income

6,393

5,204

4,618

5,466

5,787

21,681

20,562

Total interest income

120,238

120,333

117,638

112,741

112,834

470,950

438,365

Interest expense:

Deposits

37,622

39,312

40,472

39,465

39,138

156,871

161,574

Short-term borrowings

—

Long-term borrowings

1,721

1,757

2,057

2,070

2,146

7,605

8,724

Total interest expense

39,344

41,069

42,529

41,535

41,284

164,477

170,300

Net interest income

80,894

79,264

75,109

71,206

71,550

306,473

268,065

Provision for credit losses

750

950

1,050

1,500

1,000

4,250

3,850

Net interest income after provision for credit losses

80,144

78,314

74,059

69,706

70,550

302,223

264,215

Noninterest income:

Wealth management fee income

8,196

7,629

6,811

6,975

7,208

29,611

27,452

Mortgage income, net

3,653

3,568

2,907

1,926

3,326

12,054

10,177

Service charges on deposit accounts

2,016

2,000

1,962

2,025

1,877

8,003

7,184

Card interchange income

3,772

3,752

3,699

3,337

3,541

14,560

13,661

BOLI income

1,857

1,654

1,429

1,420

1,421

6,360

5,448

Asset gains (losses), net

422

1,294

(199

)

(354

)

510

1,163

4,212

Deferred compensation plan asset market valuations

465

972

1,437

(192

)

2,919

1,198

LSR income, net

644

668

950

1,057

1,064

3,319

4,405

Other noninterest income

2,067

2,082

1,637

1,792

2,103

7,578

8,530

Total noninterest income

23,092

23,619

20,633

18,223

20,858

85,567

82,267

Noninterest expense:

Personnel expense

30,233

29,437

29,114

26,521

26,682

115,305

108,414

Occupancy, equipment and office

9,169

9,028

9,104

9,330

8,685

36,631

35,136

Business development and marketing

2,093

2,223

1,593

2,100

2,325

8,009

8,330

Data processing

4,691

4,671

4,682

4,525

4,668

18,569

17,754

Intangibles amortization

1,293

1,414

1,481

1,552

1,587

5,740

6,876

FDIC assessments

1,033

1,005

1,029

940

990

4,007

4,003

Merger-related expense

1,956

—

1,956

—

Other noninterest expense

2,571

2,310

2,916

2,819

3,268

10,616

10,840

Total noninterest expense

53,039

50,088

49,919

47,787

48,205

200,833

191,353

Income before income tax expense

50,197

51,845

44,773

40,142

43,203

186,957

155,129

Income tax expense

9,873

10,110

8,738

7,550

8,723

36,271

31,070

Net income

40,324

41,735

36,035

32,592

34,480

150,686

124,059

Earnings per common share:

Basic

2.72

2.81

2.40

2.14

2.25

10.06

8.24

Diluted

2.65

2.73

2.34

2.08

2.19

9.78

8.05

Common shares outstanding:

Basic weighted average

14,804

14,836

15,029

15,256

15,297

14,980

15,049

Diluted weighted average

15,227

15,303

15,431

15,647

15,710

15,404

15,416

Nicolet Bankshares, Inc.

Consolidated Financial Summary (Unaudited)

For the Three Months Ended

For the Years Ended

(In thousands, except share & per share data)

12/31/2025

9/30/2025

6/30/2025

3/31/2025

12/31/2024

12/31/2025

12/31/2024

Selected Average Balances:

Loans

6,858,444

6,843,189

6,833,236

6,710,206

6,581,059

6,811,763

6,505,103

Investment securities

902,147

903,839

900,469

886,010

884,376

898,176

880,876

Interest-earning assets

8,381,031

8,206,651

8,140,178

8,078,997

7,946,309

8,202,556

7,783,884

Cash and cash equivalents

634,751

480,208

423,272

497,865

493,237

509,320

416,109

Goodwill and other intangibles, net

382,956

384,296

385,735

387,260

388,824

385,048

391,343

Total assets

9,163,123

8,984,344

8,909,653

8,849,412

8,716,611

8,977,514

8,544,419

Deposits

7,717,321

7,583,986

7,504,224

7,446,107

7,314,632

7,563,710

7,215,038

Interest-bearing liabilities

5,989,196

5,911,850

5,972,117

5,953,083

5,667,803

5,956,538

5,622,605

Stockholders’ equity (common)

1,234,619

1,194,974

1,183,316

1,178,868

1,163,477

1,198,089

1,100,396

Selected Ratios: (1)

Book value per common share

84.91

82.10

79.74

78.11

76.38

84.91

76.38

Tangible book value per common share (2)

59.09

56.17

53.94

52.59

51.10

59.09

51.10

Return on average assets

1.75

1.84

1.62

1.49

1.57

1.68

1.45

Return on average common equity

12.96

13.86

12.21

11.21

11.79

12.58

11.27

Return on average tangible common equity (2)

18.78

20.42

18.12

16.70

17.71

18.53

17.50

Average equity to average assets

13.47

13.30

13.28

13.32

13.35

12.88

Stockholders’ equity to assets

13.69

13.46

13.33

13.18

13.33

13.69

13.33

Tangible common equity to tangible assets (2)

9.94

9.61

9.42

9.28

9.33

9.94

9.33

Net interest margin

3.86

3.72

3.58

3.61

3.76

3.47

Efficiency ratio

51.00

49.10

51.79

52.94

52.17

51.15

54.97

Effective tax rate

19.67

19.50

19.52

18.81

20.19

19.40

20.03

Selected Asset Quality Information:

Nonaccrual loans

31,679

27,463

27,735

28,325

28,419

31,679

28,419

Other real estate owned

667

767

881

946

693

667

693

Nonperforming assets

32,346

28,230

28,616

29,271

29,112

32,346

29,112

Net loan charge-offs (recoveries)

529

573

372

342

363

1,816

1,038

Allowance for credit losses-loans to loans

1.01

1.00

1.01

1.00

Net charge-offs to average loans (1)

0.03

0.02

0.03

0.02

Nonperforming loans to total loans

0.46

0.40

0.41

0.42

0.43

0.46

0.43

Nonperforming assets to total assets

0.35

0.31

0.32

0.33

0.35

0.33

Stock Repurchase Information: (3)

Common stock repurchased ($)

—

20,525

29,989

26,047

10,137

76,561

10,137

Common stock repurchased (shares)

—

155,393

257,402

233,207

92,440

646,002

92,440

(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)

12/31/2025

9/30/2025

6/30/2025

3/31/2025

12/31/2024

Period End Loan Composition

Commercial & industrial

1,367,522

1,415,841

1,412,621

1,409,320

1,319,763

Owner-occupied commercial real estate (“CRE”)

939,587

947,390

963,278

949,107

940,367

Agricultural

1,415,425

1,378,070

1,346,924

1,329,807

1,322,038

Commercial

3,722,534

3,741,301

3,722,823

3,688,234

3,582,168

CRE investment

1,188,351

1,213,301

1,231,423

1,225,490

1,221,826

Construction & land development

326,638

324,209

298,122

273,007

239,694

Commercial real estate

1,514,989

1,537,510

1,529,545

1,498,497

1,461,520

Commercial-based loans

5,237,523

5,278,811

5,252,368

5,186,731

5,043,688

Residential construction

95,268

92,325

88,152

91,321

96,110

Residential first mortgage

1,193,683

1,199,512

1,205,841

1,194,116

1,196,158

Residential junior mortgage

268,188

260,167

249,406

235,096

234,634

Residential real estate

1,557,139

1,552,004

1,543,399

1,520,533

1,526,902

Retail & other

41,683

43,896

43,374

38,334

55,994

Retail-based loans

1,598,822

1,595,900

1,586,773

1,558,867

1,582,896

Total loans

6,836,345

6,874,711

6,839,141

6,745,598

6,626,584

Period End Deposit Composition

Noninterest-bearing demand

1,828,928

1,826,453

1,800,335

1,689,129

1,791,228

Interest-bearing demand

1,263,276

1,104,552

1,266,507

1,239,075

1,168,560

Money market

2,056,550

2,044,055

1,900,639

1,988,648

1,942,367

Savings

834,520

825,683

805,300

794,223

774,707

Time

1,747,497

1,810,722

1,768,892

1,861,115

1,726,822

Total deposits

7,730,771

7,611,465

7,541,673

7,572,190

7,403,684

Brokered transaction accounts

175,776

160,706

307,527

249,537

163,580

Brokered time deposits

405,050

444,683

450,948

607,725

586,852

Total brokered deposits

580,826

605,389

758,475

857,262

750,432

Customer transaction accounts

5,807,498

5,640,037

5,465,254

5,461,538

5,513,282

Customer time deposits

1,342,447

1,366,039

1,317,944

1,253,390

1,139,970

Total customer deposits (core)

7,149,945

7,006,076

6,783,198

6,714,928

6,653,252

Nicolet Bankshares, Inc.

Net Interest Income and Net Interest Margin Analysis (Unaudited)

For the Three Months Ended

December 31, 2025

September 30, 2025

December 31, 2024

Average

(In thousands)

Balance

Interest

Rate

Balance

Interest

Rate

Balance

Interest

Rate

ASSETS

Total loans (1) (2)

6,858,444

106,696

6.18

6,843,189

108,042

6.27

6,581,059

100,759

6.10

Investment securities (2)

902,147

7,578

3.36

903,839

7,519

3.33

884,376

6,795

3.07

Other interest-earning assets

620,440

6,393

4.09

459,623

5,204

4.50

480,874

5,787

4.79

Total interest-earning assets

8,381,031

120,667

5.72

8,206,651

120,765

5.85

7,946,309

113,341

5.68

Other assets, net

782,092

777,693

770,302

Total assets

9,163,123

8,984,344

8,716,611

LIABILITIES AND STOCKHOLDERS' EQUITY

Interest-bearing core deposits

5,262,553

31,383

2.37

5,118,886

32,329

2.51

4,783,675

30,754

2.56

Brokered deposits

591,795

6,239

4.18

658,491

6,983

4.21

722,827

8,384

4.61

Total interest-bearing deposits

5,854,348

37,622

2.55

5,777,377

39,312

2.70

5,506,502

39,138

2.83

Wholesale funding

134,848

1,722

5.07

134,473

1,757

5.18

161,301

2,146

5.29

Total interest-bearing liabilities

5,989,196

39,344

2.61

5,911,850

41,069

2.76

5,667,803

41,284

2.90

Noninterest-bearing demand deposits

1,862,973

1,806,609

1,808,130

Other liabilities

76,335

70,911

77,201

Stockholders' equity

1,234,619

1,194,974

1,163,477

Total liabilities and stockholders' equity

9,163,123

8,984,344

8,716,611

Net interest income and rate spread

81,323

3.11

79,696

3.09

72,057

2.78

Net interest margin

3.86

3.61

Loan purchase accounting accretion (3)

934

0.04

1,375

0.07

1,475

0.07

Loan nonaccrual interest (3)

(383

)

(0.02

(346

)

(0.02

(458

)

(0.02

For the Years Ended

December 31, 2025

December 31, 2024

Average

(In thousands)

Balance

Interest

Rate

Balance

Interest

Rate

ASSETS

Total loans (1) (2)

6,811,763

421,645

6.19

6,505,103

393,551

6.05

Investment securities (2)

898,176

29,419

3.28

880,876

26,237

2.98

Other interest-earning assets

492,617

21,681

4.40

397,905

20,562

5.17

Total interest-earning assets

8,202,556

472,745

5.76

7,783,884

440,350

5.66

Other assets, net

774,958

760,535

Total assets

8,977,514

8,544,419

LIABILITIES AND STOCKHOLDERS' EQUITY

Interest-bearing core deposits

5,096,949

126,172

2.48

4,709,494

126,675

2.69

Brokered deposits

713,188

30,699

4.30

750,499

34,899

4.65

Total interest-bearing deposits

5,810,137

156,871

2.70

5,459,993

161,574

2.96

Wholesale funding

146,401

7,606

5.20

162,612

8,726

5.37

Total interest-bearing liabilities

5,956,538

164,477

2.76

5,622,605

170,300

3.03

Noninterest-bearing demand deposits

1,753,573

1,755,045

Other liabilities

69,314

66,373

Stockholders' equity

1,198,089

1,100,396

Total liabilities and stockholders' equity

8,977,514

8,544,419

Net interest income and rate spread

308,268

3.00

270,050

2.63

Net interest margin

3.76

3.47

Loan purchase accounting accretion (3)

5,259

0.06

6,057

0.08

Loan nonaccrual interest (3)

(1,059

)

(0.01

(419

)

(0.01

(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 and 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

For the Years Ended

(In thousands, except per share data)

12/31/2025

9/30/2025

6/30/2025

3/31/2025

12/31/2024

12/31/2025

12/31/2024

Adjusted net income reconciliation: (1)

Net income (GAAP)

40,324

41,735

36,035

32,592

34,480

150,686

124,059

Adjustments:

Assets (gains) losses, net (2)

(422

)

(1,294

)

199

354

(510

)

(1,163

)

(4,212

)

Merger-related expense

1,956

—

1,956

—

Adjustments subtotal

1,534

(1,294

)

199

354

(510

)

793

(4,212

)

Tax on Adjustments (3)

299

(252

)

(99

)

155

(821

)

Adjusted net income (Non-GAAP)

41,559

40,693

36,195

32,877

34,069

151,324

120,668

Diluted earnings per common share:

Diluted earnings per common share (GAAP)

2.65

2.73

2.34

2.08

2.19

9.78

8.05

Adjusted Diluted earnings per common share (Non-GAAP)

2.73

2.66

2.35

2.10

2.17

9.82

7.83

Tangible assets: (4)

Total assets

9,185,107

9,029,430

8,930,809

8,975,222

8,796,795

Goodwill and other intangibles, net

382,400

383,693

385,107

386,588

388,140

Tangible assets

8,802,707

8,645,737

8,545,702

8,588,634

8,408,655

Tangible common equity: (4)

Stockholders’ equity (common)

1,257,662

1,214,960

1,190,098

1,183,268

1,172,898

Goodwill and other intangibles, net

382,400

383,693

385,107

386,588

388,140

Tangible common equity

875,262

831,267

804,991

796,680

784,758

Tangible average common equity: (4)

Average stockholders’ equity (common)

1,234,619

1,194,974

1,183,316

1,178,868

1,163,477

1,198,089

1,100,396

Average goodwill and other intangibles, net

382,956

384,296

385,735

387,260

388,824

385,048

391,343

Average tangible common equity

851,663

810,678

797,581

791,608

774,653

813,041

709,053

(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.