Nicolet Bankshares, Inc. Announces 2024 Results

GREEN BAY, Wis.--(BUSINESS WIRE)--Nicolet Bankshares, Inc. (NYSE: NIC) (“Nicolet”) announced fourth quarter 2024 net income of $34 million and earnings per diluted common share of $2.19, compared to net income of $33 million and earnings per diluted common share of $2.10 for third quarter 2024, and net income of $31 million and earnings per diluted common share of $2.02 for fourth quarter 2023. Net income for the year ended December 31, 2024 was $124 million and earnings per diluted common share of $8.05, compared to net income of $62 million and earnings per diluted common share of $4.08 for the year ended December 31, 2023. Net income reflected certain non-core items and the related tax effect of each, including the first quarter 2023 balance sheet repositioning and third quarter 2023 change in Wisconsin state tax law (as detailed in the Reconciliation of Non-GAAP Financial Measures table below), as well as gains / (losses) on other assets and investments in all periods. For the year ended December 31, 2024, these non-core items positively impacted earnings per diluted common share $0.22, and negatively impacted earnings per diluted common share $2.64 for the year ended December 31, 2023. “I am pleased to report Nicolet produced its best quarterly earnings in its 24-year history, which caps off a record year for our Company,” said Mike Daniels, Chairman, President, and CEO of Nicolet. “While we always are finding ways to improve, our 2024 financial results were impressive across the board. In addition to record profitability, we also saw a continued improvement in our net interest margin, solid loan and deposit growth, and are continuing to build capital that strengthens an already solid balance sheet. I am extremely proud of our team for making this year possible, and am excited by the opportunities before us in the years to come.” “I believe 2025 is exciting for Nicolet,” Daniels continued. “Given our strong capital levels coupled with continued earnings performance that likely places us in the top quartile, if not decile, of performance among community banks, we think all organic and acquisition options remain on the table in the coming year. The focus will always be to take care of our current customers, and to continue to win business one customer at a time, but we hope to return to the M&A market in 2025 given our proven ability to create substantial shareholder value through acquisitions. The increase in bank valuations, likely change in the bank regulatory environment, and a resilient economy that looks to continue for the foreseeable future has led to an increase in M&A conversations, albeit in the early stages. In the meantime, we’ve been making one of the best acquisitions we can make by acquiring our own stock through share repurchases, which we have begun again this past quarter and will likely continue to some degree until we can find a better use of our capital. Whether we deploy capital through those share repurchases, or through M&A, increasing the dividend, funding organic growth, preserving capital, or all the above, the fundamental strength of our franchise, which is driven by 950 individuals that show up and care every day, afford us that luxury.” Balance Sheet Review At December 31, 2024, period end assets were $8.8 billion, an increase of $160 million (2%) from September 30, 2024, mostly from loan growth and higher cash balances. Total loans increased $70 million from September 30, 2024, mostly in agricultural loans. Total deposits of $7.4 billion at December 31, 2024, increased $144 million from September 30, 2024, the net of a $48 million decrease in noninterest-bearing demand and a $192 million increase in interest-bearing deposits. Total capital was $1.2 billion at December 31, 2024, an increase of $24 million over September 30, 2024, with solid earnings and stock option exercises partly offset by the quarterly common stock dividend and unfavorable movements in the securities portfolio market valuation. Asset Quality Nonperforming assets were $29 million and represented 0.33% of total assets at December 31, 2024, compared to $26 million or 0.31% of total assets at September 30, 2024, and $28 million or 0.33% of total assets at December 31, 2023. The allowance for credit losses-loans was $66 million and represented 1.00% of total loans at December 31, 2024, compared to $66 million (or 1.00% of total loans) at September 30, 2024, and $64 million (or 1.00% of total loans) at December 31, 2023. Asset quality trends remain solid and loan net charge-offs were negligible. Income Statement Review - Year Net income was $124 million and adjusted net income (non-GAAP) was $121 million for the year ended December 31, 2024, compared to net income of $62 million and adjusted net income (non-GAAP) of $101 million for the year ended December 31, 2023. Net interest income was $268 million for the year ended December 31, 2024, up $27 million from the year ended December 31, 2023. Interest income increased $56 million mostly due to the repricing of new and renewed loans in a higher interest rate environment, as well as solid loan growth, while interest expense increased $29 million due to both higher average balances and higher rates. The net interest margin for 2024 was 3.47%, up 29 bps from 3.18% for 2023. The yield on interest-earning assets increased 64 bps (to 5.66%) mostly due to higher average rates from the repricing of the loan portfolio, while the cost of funds increased 38 bps (to 3.03%) for 2024. Noninterest income of $82 million for full year 2024 increased $46 million over full year 2023, significantly impacted by the 2023 balance sheet repositioning noted above. Excluding net asset gains (losses), noninterest income for 2024 was $78 million, a $9 million increase over 2023, with growth in most noninterest income categories. Wealth income increased $4 million on growth in assets under management (due to both net new accounts and positive market value changes), while net mortgage income grew $3 million mostly from higher gains on sale. Noninterest expense of $191 million for full year 2024 increased $5 million over full year 2023. Personnel expense increased $9 million over 2023, including higher incentives commensurate with solid earnings as well as annual merit increases between the years. Non-personnel expenses combined decreased $4 million from full year 2023 mostly from lower data processing, as 2023 included a $3 million early contract termination charge. Income tax expense was $31 million (effective tax rate of 20.03%) for the year ended December 31, 2024, compared to $25 million (effective tax rate of 28.99%) for the year ended December 31, 2023. The change in income tax expense was due to higher pretax income, partly offset by the impact of the 2023 Wisconsin tax law change noted above. Income Statement Review - Quarter Net income was $34 million for fourth quarter 2024, compared to net income of $33 million for third quarter 2024. Net interest income was $72 million for fourth quarter 2024, up $3 million from third quarter 2024, due a reduction in interest expense from lower deposit rates. The net interest margin for fourth quarter 2024 was 3.61%, up 10 bps from 3.51% for third quarter 2024. The yield on interest-earning assets decreased 8 bps (to 5.68%) due to the impact of recent Federal Reserve interest reductions on new and variable rate assets, while the cost of funds decreased 21 bps (to 2.90%) for fourth quarter 2024 due to lower deposit costs. Noninterest income of $21 million for fourth quarter 2024 decreased $2 million from third quarter 2024, mostly due to unfavorable changes in the deferred compensation plan asset market valuations. Wealth income increased $0.1 million, while net mortgage income grew $0.5 million. Noninterest expense of $48 million for fourth quarter 2024 decreased $1 million from third quarter 2024. Personnel expense decreased $2 million from third quarter 2024, mostly due to the offsetting market value change in the deferred compensation plan liabilities. Non-personnel expenses combined increased $1 million from third quarter 2024 on higher marketing (due to donations to support capital campaigns within our communities) and higher other noninterest expense (mostly 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) 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Assets Cash and due from banks $ 115,943 $ 124,076 $ 109,674 $ 81,677 $ 129,898 Interest-earning deposits 420,104 303,908 298,856 345,747 361,533 Cash and cash equivalents 536,047 427,984 408,530 427,424 491,431 Certificates of deposit in other banks 980 3,189 3,924 5,639 6,374 Securities available for sale, at fair value 806,415 825,907 799,937 803,963 802,573 Other investments 61,145 60,443 60,796 60,464 57,560 Loans held for sale 7,637 11,121 9,450 5,022 4,160 Loans 6,626,584 6,556,840 6,529,134 6,397,617 6,353,942 Allowance for credit losses - loans (66,322 ) (65,785 ) (65,414 ) (64,347 ) (63,610 ) Loans, net 6,560,262 6,491,055 6,463,720 6,333,270 6,290,332 Premises and equipment, net 126,979 123,585 120,988 119,962 118,756 Bank owned life insurance (“BOLI”) 186,448 185,011 171,972 170,746 169,392 Goodwill and other intangibles, net 388,140 389,727 391,421 393,183 394,366 Accrued interest receivable and other assets 122,742 119,096 126,279 126,989 133,734 Total assets $ 8,796,795 $ 8,637,118 $ 8,557,017 $ 8,446,662 $ 8,468,678 Liabilities and Stockholders' Equity Liabilities: Noninterest-bearing demand deposits $ 1,791,228 $ 1,839,617 $ 1,764,806 $ 1,665,229 $ 1,958,709 Interest-bearing deposits 5,612,456 5,420,380 5,476,272 5,500,503 5,239,091 Total deposits 7,403,684 7,259,997 7,241,078 7,165,732 7,197,800 Long-term borrowings 161,387 161,210 162,433 162,257 166,930 Accrued interest payable and other liabilities 58,826 66,584 62,093 55,018 64,941 Total liabilities 7,623,897 7,487,791 7,465,604 7,383,007 7,429,671 Stockholders' Equity: Common stock 154 151 150 149 149 Additional paid-in capital 655,540 647,934 639,159 636,621 633,770 Retained earnings 565,772 535,638 507,366 482,295 458,261 Accumulated other comprehensive income (loss) (48,568 ) (34,396 ) (55,262 ) (55,410 ) (53,173 ) Total stockholders' equity 1,172,898 1,149,327 1,091,413 1,063,655 1,039,007 Total liabilities and stockholders' equity $ 8,796,795 $ 8,637,118 $ 8,557,017 $ 8,446,662 $ 8,468,678 Common shares outstanding 15,356,785 15,104,381 14,945,598 14,930,549 14,894,209 Nicolet Bankshares, Inc. Consolidated Statements of Income (Unaudited) For the Three Months Ended For the Years Ended (In thousands, except per share data) 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023 Interest income: Loans, including loan fees $ 100,605 $ 100,824 $ 97,975 $ 93,648 $ 90,265 $ 393,052 $ 341,155 Taxable investment securities 5,369 5,211 5,056 4,557 4,737 20,193 18,182 Tax-exempt investment securities 1,073 1,095 1,152 1,238 1,394 4,558 6,031 Other interest income 5,787 5,492 4,695 4,588 7,149 20,562 17,494 Total interest income 112,834 112,622 108,878 104,031 103,545 438,365 382,862 Interest expense: Deposits 39,138 42,060 41,386 38,990 36,583 161,574 125,824 Short-term borrowings — 2 — — — 2 4,794 Long-term borrowings 2,146 2,194 2,150 2,234 2,680 8,724 10,728 Total interest expense 41,284 44,256 43,536 41,224 39,263 170,300 141,346 Net interest income 71,550 68,366 65,342 62,807 64,282 268,065 241,516 Provision for credit losses 1,000 750 1,350 750 1,000 3,850 4,990 Net interest income after provision for credit losses 70,550 67,616 63,992 62,057 63,282 264,215 236,526 Noninterest income: Wealth management fee income 7,208 7,085 6,674 6,485 6,308 27,452 23,747 Mortgage income, net 3,326 2,853 2,634 1,364 1,856 10,177 7,164 Service charges on deposit accounts 1,877 1,913 1,813 1,581 1,475 7,184 5,976 Card interchange income 3,541 3,564 3,458 3,098 3,306 13,661 12,991 BOLI income 1,421 1,455 1,225 1,347 1,161 5,448 4,524 Asset gains (losses), net 510 1,177 616 1,909 5,947 4,212 (32,808 ) Deferred compensation plan asset market valuations (192 ) 1,162 169 59 949 1,198 1,937 LSR income, net 1,064 1,090 1,117 1,134 1,027 4,405 4,425 Other noninterest income 2,103 2,079 1,903 2,445 2,405 8,530 8,016 Total noninterest income 20,858 22,378 19,609 19,422 24,434 82,267 35,972 Noninterest expense: Personnel expense 26,682 28,937 26,285 26,510 26,937 108,414 99,109 Occupancy, equipment and office 8,685 8,826 8,681 8,944 9,567 35,136 36,222 Business development and marketing 2,325 1,823 2,040 2,142 1,854 8,330 7,790 Data processing 4,668 4,535 4,281 4,270 7,043 17,754 19,892 Intangibles amortization 1,587 1,694 1,762 1,833 1,842 6,876 8,072 FDIC assessments 990 990 990 1,033 950 4,003 3,999 Merger-related expense — — — — — — 189 Other noninterest expense 3,268 2,343 2,814 2,415 2,103 10,840 10,593 Total noninterest expense 48,205 49,148 46,853 47,147 50,296 191,353 185,866 Income before income tax expense 43,203 40,846 36,748 34,332 37,420 155,129 86,632 Income tax expense 8,723 8,330 7,475 6,542 6,759 31,070 25,116 Net income $ 34,480 $ 32,516 $ 29,273 $ 27,790 $ 30,661 $ 124,059 $ 61,516 Earnings per common share: Basic $ 2.25 $ 2.16 $ 1.96 $ 1.86 $ 2.07 $ 8.24 $ 4.17 Diluted $ 2.19 $ 2.10 $ 1.92 $ 1.82 $ 2.02 $ 8.05 $ 4.08 Common shares outstanding: Basic weighted average 15,297 15,052 14,937 14,907 14,823 15,049 14,743 Diluted weighted average 15,710 15,479 15,276 15,249 15,142 15,416 15,071 Nicolet Bankshares, Inc. Consolidated Financial Summary (Unaudited) For the Three Months Ended For the Years Ended (In thousands, except share & per share data) 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023 Selected Average Balances: Loans $ 6,581,059 $ 6,542,532 $ 6,496,732 $ 6,398,838 $ 6,263,971 $ 6,505,103 $ 6,233,623 Investment securities 884,376 873,212 881,190 884,775 897,437 880,876 1,107,105 Interest-earning assets 7,946,309 7,824,773 7,733,097 7,629,120 7,683,495 7,783,884 7,671,839 Cash and cash equivalents 493,237 431,632 374,176 364,375 558,473 416,109 352,458 Goodwill and other intangibles, net 388,824 390,453 392,171 393,961 395,158 391,343 398,106 Total assets 8,716,611 8,596,812 8,481,186 8,380,595 8,415,169 8,544,419 8,407,562 Deposits 7,314,632 7,247,321 7,183,777 7,112,971 7,189,650 7,215,038 7,087,427 Interest-bearing liabilities 5,667,803 5,653,259 5,658,642 5,509,882 5,358,445 5,622,605 5,336,825 Stockholders’ equity (common) 1,163,477 1,118,242 1,070,379 1,048,596 996,745 1,100,396 979,366 Selected Ratios: (1) Book value per common share $ 76.38 $ 76.09 $ 73.03 $ 71.24 $ 69.76 $ 76.38 $ 69.76 Tangible book value per common share (2) $ 51.10 $ 50.29 $ 46.84 $ 44.91 $ 43.28 $ 51.10 $ 43.28 Return on average assets 1.57 % 1.50 % 1.39 % 1.33 % 1.45 % 1.45 % 0.73 % Return on average common equity 11.79 11.57 11.00 10.66 12.20 11.27 6.28 Return on average tangible common equity (2) 17.71 17.77 17.36 17.07 20.22 17.50 10.58 Average equity to average assets 13.35 13.01 12.62 12.51 11.84 12.88 11.65 Stockholders’ equity to assets 13.33 13.31 12.75 12.59 12.27 13.33 12.27 Tangible common equity to tangible assets (2) 9.33 9.21 8.57 8.33 7.98 9.33 7.98 Net interest margin * 3.61 3.51 3.42 3.33 3.35 3.47 3.18 Efficiency ratio 52.17 54.57 55.24 58.34 60.41 54.97 59.50 Effective tax rate 20.19 20.39 20.34 19.06 18.06 20.03 28.99 Selected Asset Quality Information: Nonaccrual loans $ 28,419 $ 25,565 $ 27,838 $ 26,677 $ 26,625 $ 28,419 $ 26,625 Other real estate owned 693 859 1,147 1,245 1,267 693 1,267 Nonperforming assets $ 29,112 $ 26,424 $ 28,985 $ 27,922 $ 27,892 $ 29,112 $ 27,892 Net loan charge-offs (recoveries) $ 363 $ 379 $ 283 $ 13 $ 550 $ 1,038 $ 869 Allowance for credit losses-loans to loans 1.00 % 1.00 % 1.00 % 1.01 % 1.00 % 1.00 % 1.00 % Net charge-offs to average loans (1) 0.02 0.02 0.02 0.00 0.03 0.02 0.01 Nonperforming loans to total loans 0.43 0.39 0.43 0.42 0.42 0.43 0.42 Nonperforming assets to total assets 0.33 0.31 0.34 0.33 0.33 0.33 0.33 Stock Repurchase Information: (3) Common stock repurchased ($) $ 10,137 $ — $ — $ — $ — $ 10,137 $ 1,519 Common stock repurchased (shares) 92,440 — — — — 92,440 26,853 * During fourth quarter 2024, Nicolet changed the annualization methodology utilized for the calculation of net interest margin from 30/365 to actual/365 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 the 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) 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Period End Loan Composition Commercial & industrial $ 1,319,763 $ 1,351,516 $ 1,358,152 $ 1,307,490 $ 1,284,009 Owner-occupied commercial real estate (“CRE”) 940,367 920,533 941,137 955,786 956,594 Agricultural 1,322,038 1,261,152 1,224,885 1,190,371 1,161,531 Commercial 3,582,168 3,533,201 3,524,174 3,453,647 3,402,134 CRE investment 1,221,826 1,226,982 1,198,020 1,188,722 1,142,251 Construction & land development 239,694 231,694 247,565 241,730 310,110 Commercial real estate 1,461,520 1,458,676 1,445,585 1,430,452 1,452,361 Commercial-based loans 5,043,688 4,991,877 4,969,759 4,884,099 4,854,495 Residential construction 96,110 85,811 90,904 84,370 75,726 Residential first mortgage 1,196,158 1,194,574 1,190,790 1,167,069 1,167,109 Residential junior mortgage 234,634 223,456 218,512 206,434 200,884 Residential real estate 1,526,902 1,503,841 1,500,206 1,457,873 1,443,719 Retail & other 55,994 61,122 59,169 55,645 55,728 Retail-based loans 1,582,896 1,564,963 1,559,375 1,513,518 1,499,447 Total loans $ 6,626,584 $ 6,556,840 $ 6,529,134 $ 6,397,617 $ 6,353,942 Period End Deposit Composition Noninterest-bearing demand $ 1,791,228 $ 1,839,617 $ 1,764,806 $ 1,665,229 $ 1,958,709 Interest-bearing demand 1,168,560 1,035,593 1,093,621 1,121,030 1,055,520 Money market 1,942,367 1,928,977 1,963,559 2,027,559 1,891,287 Savings 774,707 763,024 762,529 765,084 768,401 Time 1,726,822 1,692,786 1,656,563 1,586,830 1,523,883 Total deposits $ 7,403,684 $ 7,259,997 $ 7,241,078 $ 7,165,732 $ 7,197,800 Brokered transaction accounts $ 163,580 $ 159,547 $ 250,109 $ 265,818 $ 166,861 Brokered time deposits 586,852 549,907 557,657 517,190 448,582 Total brokered deposits $ 750,432 $ 709,454 $ 807,766 $ 783,008 $ 615,443 Customer transaction accounts $ 5,513,282 $ 5,407,664 $ 5,334,406 $ 5,313,085 $ 5,507,056 Customer time deposits 1,139,970 1,142,879 1,098,906 1,069,639 1,075,301 Total customer deposits (core) $ 6,653,252 $ 6,550,543 $ 6,433,312 $ 6,382,724 $ 6,582,357 Nicolet Bankshares, Inc. Net Interest Income and Net Interest Margin Analysis (Unaudited) For the Three Months Ended December 31, 2024 September 30, 2024 December 31, 2023 Average Average Average Average Average Average (In thousands) Balance Interest Rate * Balance Interest Rate * Balance Interest Rate * ASSETS Total loans (1) (2) $ 6,581,059 $ 100,759 6.10 % $ 6,542,532 $ 100,962 6.14 % $ 6,263,971 $ 90,313 5.73 % Investment securities (2) 884,376 6,795 3.07 % 873,212 6,666 3.05 % 897,437 6,567 2.93 % Other interest-earning assets 480,874 5,787 4.79 % 409,029 5,492 5.35 % 522,087 7,149 5.44 % Total interest-earning assets 7,946,309 $ 113,341 5.68 % 7,824,773 $ 113,120 5.76 % 7,683,495 $ 104,029 5.38 % Other assets, net 770,302 772,039 731,674 Total assets $ 8,716,611 $ 8,596,812 $ 8,415,169 LIABILITIES AND STOCKHOLDERS' EQUITY Interest-bearing core deposits $ 4,783,675 $ 30,754 2.56 % $ 4,723,464 $ 32,952 2.78 % $ 4,570,493 $ 29,730 2.58 % Brokered deposits 722,827 8,384 4.61 % 768,058 9,108 4.72 % 601,379 6,853 4.52 % Total interest-bearing deposits 5,506,502 39,138 2.83 % 5,491,522 42,060 3.05 % 5,171,872 36,583 2.81 % Wholesale funding 161,301 2,146 5.29 % 161,737 2,196 5.40 % 186,573 2,680 5.70 % Total interest-bearing liabilities 5,667,803 $ 41,284 2.90 % 5,653,259 $ 44,256 3.11 % 5,358,445 $ 39,263 2.91 % Noninterest-bearing demand deposits 1,808,130 1,755,799 2,017,778 Other liabilities 77,201 69,512 42,201 Stockholders' equity 1,163,477 1,118,242 996,745 Total liabilities and stockholders' equity $ 8,716,611 $ 8,596,812 $ 8,415,169 Net interest income and rate spread $ 72,057 2.78 % $ 68,864 2.65 % $ 64,766 2.47 % Net interest margin 3.61 % 3.51 % 3.35 % Loan purchase accounting accretion (3) $ 1,475 0.09 % $ 1,527 0.09 % $ 1,587 0.10 % Loan nonaccrual interest (4) $ (458 ) (0.03 )% $ (48 ) 0.00 % $ (327 ) (0.02 )% For the Years Ended December 31, 2024 December 31, 2023 Average Average Average Average (In thousands) Balance Interest Rate * Balance Interest Rate * ASSETS Total loans (1) (2) $ 6,505,103 $ 393,551 6.05 % $ 6,233,623 $ 341,332 5.48 % Investment securities (2) 880,876 26,237 2.98 % 1,107,105 26,142 2.36 % Other interest-earning assets 397,905 20,562 5.17 % 331,111 17,494 5.28 % Total interest-earning assets 7,783,884 $ 440,350 5.66 % 7,671,839 $ 384,968 5.02 % Other assets, net 760,535 735,723 Total assets $ 8,544,419 $ 8,407,562 LIABILITIES AND STOCKHOLDERS' EQUITY Interest-bearing core deposits $ 4,709,494 $ 126,675 2.69 % $ 4,417,426 $ 99,673 2.26 % Brokered deposits 750,499 34,899 4.65 % 615,209 26,151 4.25 % Total interest-bearing deposits 5,459,993 161,574 2.96 % 5,032,635 125,824 2.50 % Wholesale funding 162,612 8,726 5.37 % 304,190 15,522 5.10 % Total interest-bearing liabilities 5,622,605 $ 170,300 3.03 % 5,336,825 $ 141,346 2.65 % Noninterest-bearing demand deposits 1,755,045 2,054,792 Other liabilities 66,373 36,579 Stockholders' equity 1,100,396 979,366 Total liabilities and stockholders' equity $ 8,544,419 $ 8,407,562 Net interest income and rate spread $ 270,050 2.63 % $ 243,622 2.37 % Net interest margin 3.47 % 3.18 % Loan purchase accounting accretion (3) $ 6,057 0.09 % $ 6,496 0.10 % * During fourth quarter 2024, Nicolet changed the annualization methodology utilized for the calculation of net interest margin from 30/365 to actual/365 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 the 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 For the Years Ended (In thousands, except per share data) 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023 Adjusted net income reconciliation: (1) Net income (GAAP) $ 34,480 $ 32,516 $ 29,273 $ 27,790 $ 30,661 $ 124,059 $ 61,516 Adjustments: Provision expense (2) — — — — — — 2,340 Assets (gains) losses, net (3) (510 ) (1,177 ) (616 ) (1,909 ) (5,947 ) (4,212 ) 32,808 Merger-related expense — — — — — — 189 Contract termination charge — — — — 2,689 — 2,689 Adjustments subtotal (510 ) (1,177 ) (616 ) (1,909 ) (3,258 ) (4,212 ) 38,026 Tax on Adjustments (4) (99 ) (230 ) (120 ) (372 ) (635 ) (821 ) 7,415 Tax - Wisconsin Tax Law Change (4) — — — — — — 9,118 Adjusted net income (Non-GAAP) $ 34,069 $ 31,569 $ 28,777 $ 26,253 $ 28,038 $ 120,668 $ 101,245 Diluted earnings per common share: Diluted earnings per common share (GAAP) $ 2.19 $ 2.10 $ 1.92 $ 1.82 $ 2.02 $ 8.05 $ 4.08 Adjusted Diluted earnings per common share (Non-GAAP) $ 2.17 $ 2.04 $ 1.88 $ 1.72 $ 1.85 $ 7.83 $ 6.72 Tangible assets: (5) Total assets $ 8,796,795 $ 8,637,118 $ 8,557,017 $ 8,446,662 $ 8,468,678 Goodwill and other intangibles, net 388,140 389,727 391,421 393,183 394,366 Tangible assets $ 8,408,655 $ 8,247,391 $ 8,165,596 $ 8,053,479 $ 8,074,312 Tangible common equity: (5) Stockholders’ equity (common) $ 1,172,898 $ 1,149,327 $ 1,091,413 $ 1,063,655 $ 1,039,007 Goodwill and other intangibles, net 388,140 389,727 391,421 393,183 394,366 Tangible common equity $ 784,758 $ 759,600 $ 699,992 $ 670,472 $ 644,641 Tangible average common equity: (5) Average stockholders’ equity (common) $ 1,163,477 $ 1,118,242 $ 1,070,379 $ 1,048,596 $ 996,745 $ 1,100,396 $ 979,366 Average goodwill and other intangibles, net 388,824 390,453 392,171 393,961 395,158 391,343 398,106 Average tangible common equity $ 774,653 $ 727,789 $ 678,208 $ 654,635 $ 601,587 $ 709,053 $ 581,260 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) Provision expense for 2023 is attributable to the expected loss on a bank subordinated debt investment. (3) Includes the gains / (losses) on other assets and investments, as well as the impact of the March 2023 balance sheet repositioning which included the sale of $500 million (par value) U.S. Treasury held to maturity securities for a pre-tax loss of $38 million or an after-tax loss of $28 million, with the net proceeds used to reduce FHLB borrowings and the remainder held in investable cash. (4) In July 2023, a new Wisconsin tax law change was signed which provided financial institutions with an exemption from state taxable income for interest, fees, and penalties earned on specific loans to existing Wisconsin-based business or agriculture purpose loans. The effective tax rate for periods prior to the July 1, 2023, effective date of this tax law change assumed an effective tax rate of 25%, and periods subsequent to the effective date assumed an effective tax rate of 19.5%. The adjusted net income reconciliation for first and second quarter 2023 is as originally reported, and has not been restated to reflect the $3 million excess tax expense of those quarters that was subsequently reversed in third quarter 2023 due to the Wisconsin tax law change. Thus, the adjusted net income reconciliation for the quarters of 2023 will not sum to the full year impact. (5) 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.

Nicolet Bankshares, Inc. Announces 2024 Results

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