Nicolet Bankshares' Q3 Net Income Jumps 28% on Strong Loan Growth

TL;DR

**NIC is crushing it with double-digit net income growth and solid loan expansion, making it a strong buy in regional banking.**

AI Summary

Nicolet Bankshares Inc. (NIC) reported a robust financial performance for the three and nine months ended September 30, 2025. Net income for the three months ended September 30, 2025, increased by 28.3% to $41.735 million from $32.516 million in the prior year. For the nine months ended September 30, 2025, net income rose by 23.2% to $110.362 million compared to $89.579 million in the same period of 2024. Total assets grew to $9.029 billion as of September 30, 2025, up from $8.797 billion at December 31, 2024, a 2.6% increase. Loans, net, increased by 3.7% to $6.806 billion from $6.560 billion. Total deposits also saw a 2.8% increase, reaching $7.611 billion from $7.404 billion. Net interest income significantly improved, climbing 16.0% to $79.264 million for the three-month period and 14.8% to $225.579 million for the nine-month period. The provision for credit losses increased to $950,000 for the quarter and $3.5 million year-to-date, reflecting a cautious approach. Strategic outlook remains positive with growth in wealth management fee income by 7.7% to $7.629 million for the quarter.

Why It Matters

Nicolet Bankshares' strong Q3 performance, marked by a 28.3% surge in net income and robust loan growth, signals healthy regional banking activity. This positive trend could attract investors seeking stability and growth in the financial sector, especially given the competitive landscape where smaller banks often struggle with deposit retention. For employees, continued profitability may translate to job security and potential growth opportunities. Customers benefit from a stable bank, though increased loan activity might suggest a more aggressive lending stance. The broader market could see this as an indicator of resilience in regional economies, potentially influencing other financial institutions.

Risk Assessment

Risk Level: medium — The provision for credit losses increased to $950,000 for the three months ended September 30, 2025, up from $750,000 in the prior year, and to $3.5 million for the nine months, up from $2.85 million. This indicates a growing concern for potential loan defaults. Additionally, the company purchased and retired $76.561 million in common stock during the nine months ended September 30, 2025, which, while potentially boosting EPS, also reduces cash and cash equivalents by $62.090 million, impacting liquidity.

Analyst Insight

Investors should consider NIC's consistent net income growth and strong loan portfolio expansion as positive indicators. However, monitor the increasing provision for credit losses and the impact of share repurchases on liquidity. A balanced approach would be to hold existing positions while watching for any further acceleration in credit loss provisions.

Financial Highlights

debt To Equity

0.11

revenue

$350.712M

operating Margin

N/A

total Assets

$9.029B

total Debt

$134.600M

net Income

$110.362M

eps

$7.34

gross Margin

N/A

cash Position

$473.957M

revenue Growth

+7.7%

Revenue Breakdown

Key Numbers

• $41.735M — Net Income (Q3 2025) (Increased 28.3% from $32.516M in Q3 2024)
• $110.362M — Net Income (YTD Q3 2025) (Increased 23.2% from $89.579M in YTD Q3 2024)
• $9.029B — Total Assets (Increased 2.6% from $8.797B at Dec 31, 2024)
• $6.806B — Loans, Net (Increased 3.7% from $6.560B at Dec 31, 2024)
• $7.611B — Total Deposits (Increased 2.8% from $7.404B at Dec 31, 2024)
• $79.264M — Net Interest Income (Q3 2025) (Increased 16.0% from $68.366M in Q3 2024)
• $3.5M — Provision for Credit Losses (YTD Q3 2025) (Increased from $2.85M in YTD Q3 2024)
• $7.629M — Wealth Management Fee Income (Q3 2025) (Increased 7.7% from $7.085M in Q3 2024)
• 14,798,920 — Common Shares Outstanding (As of October 30, 2025)
• $2.81 — Basic EPS (Q3 2025) (Increased from $2.16 in Q3 2024)

Key Players & Entities

• Nicolet Bankshares, Inc. (company) — Registrant
• New York Stock Exchange (regulator) — Exchange where common stock is registered
• FASB (regulator) — Issued accounting standards updates
• $41.735 million (dollar_amount) — Net income for three months ended September 30, 2025
• $32.516 million (dollar_amount) — Net income for three months ended September 30, 2024
• $110.362 million (dollar_amount) — Net income for nine months ended September 30, 2025
• $89.579 million (dollar_amount) — Net income for nine months ended September 30, 2024
• $9.029 billion (dollar_amount) — Total assets as of September 30, 2025
• $7.611 billion (dollar_amount) — Total deposits as of September 30, 2025
• $79.264 million (dollar_amount) — Net interest income for three months ended September 30, 2025

FAQ

Risk Factors

• Interest Rate Sensitivity [medium — financial]: Changes in interest rates can impact net interest income and the fair value of investment securities. For the nine months ended September 30, 2025, net interest income increased by 14.8% to $225.579 million, indicating a positive current environment, but future rate fluctuations pose a risk.
• Credit Risk [medium — financial]: The company's loan portfolio represents a significant asset. While the allowance for credit losses increased to $3.5 million year-to-date, adverse economic conditions could lead to higher delinquencies and defaults, impacting profitability. The loan portfolio grew 3.7% to $6.806 billion.
• Cybersecurity and Data Breaches [high — operational]: As a financial institution, NIC is a target for cyberattacks. A breach could lead to significant financial losses, reputational damage, and regulatory penalties. The company invests in data processing infrastructure, with expenses of $13.878 million year-to-date.
• Regulatory Compliance [medium — regulatory]: The banking industry is heavily regulated. Changes in regulations or failure to comply can result in fines, sanctions, and increased operating costs. FDIC assessments were $2.974 million year-to-date.
• Economic Downturn [medium — market]: A general economic recession could negatively affect loan demand, increase credit losses, and reduce fee income. The company's total assets grew 2.6% to $9.029 billion, indicating expansion that could be vulnerable to a downturn.
• Competition [medium — operational]: The banking sector is highly competitive, with pressure from traditional banks, credit unions, and fintech companies. Maintaining market share and profitability requires continuous innovation and customer service excellence.
• Liquidity Risk [low — financial]: While total deposits increased 2.8% to $7.611 billion, a sudden withdrawal of funds or inability to access funding markets could impair the company's ability to meet its obligations. Cash and cash equivalents were $473.957 million.
• Litigation Risk [low — legal]: Like all financial institutions, NIC faces potential litigation related to its operations, products, and services. Adverse legal judgments could result in significant financial liabilities.

Industry Context

Nicolet Bankshares operates in the highly competitive U.S. regional banking sector. The industry is characterized by increasing consolidation, technological disruption from fintech, and evolving regulatory landscapes. Banks are focusing on enhancing digital offerings, expanding fee-based income streams like wealth management, and managing interest rate sensitivity.

Regulatory Implications

The banking industry is subject to stringent regulations from bodies like the Federal Reserve and FDIC. Compliance with capital requirements, lending standards, and consumer protection laws is paramount. Any changes in these regulations, such as increased capital adequacy ratios or stricter lending guidelines, could impact Nicolet's operations and profitability.

What Investors Should Do

1. Monitor loan growth and credit quality trends.
2. Analyze the drivers of net interest income growth.
3. Evaluate the diversification of revenue streams.
4. Assess the impact of share repurchases.
5. Review the company's risk management practices.

Key Dates

• 2025-09-30: Quarterly Financial Reporting — Reported strong net income growth of 28.3% for Q3 2025 and 23.2% year-to-date, alongside asset and deposit growth.
• 2025-10-30: Common Shares Outstanding Update — Indicates a decrease in shares outstanding from prior periods, potentially due to share repurchases, which can boost EPS.
• 2024-12-31: Year-End Financial Reporting — Provided the baseline for asset and loan growth comparisons in the current period.

Glossary

AFS

Available-for-Sale securities are debt or equity securities that are bought and held for investment purposes but are not classified as held-to-maturity or trading securities. (These securities contribute to the company's investment portfolio and their fair value changes impact other comprehensive income.)

ACL-Loans

Allowance for Credit Losses on Loans is a contra-asset account that reduces the carrying amount of loans to their estimated net realizable value. (This reserve reflects the company's assessment of potential loan defaults and is a key indicator of credit quality.)

BOLI

Bank Owned Life Insurance refers to life insurance policies purchased by a bank on the lives of its key employees or directors. (BOLI provides a source of non-interest income and can be used to offset employee benefit costs.)

Net Interest Income

The difference between the interest income generated by a bank and the interest paid out to its depositors and lenders. (This is a primary driver of profitability for most banks.)

Provision for Credit Losses

An expense recognized by a financial institution to account for potential losses on loans and other credit exposures. (This provision directly impacts net income and reflects management's view on the creditworthiness of the loan portfolio.)

Noninterest Income

Revenue generated from sources other than net interest income, such as fees, commissions, and trading gains. (Diversifies revenue streams and can provide stability during periods of fluctuating interest rates.)

EPS

Earnings Per Share is a measure of a company's profitability that divides net income by the number of outstanding common shares. (A key metric for investors to assess profitability on a per-share basis.)

Comprehensive Income

Includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. (Provides a broader view of financial performance by including unrealized gains and losses on certain investments.)

Year-Over-Year Comparison

Compared to the prior year's filings, Nicolet Bankshares demonstrates significant improvement in profitability, with net income up 28.3% for the quarter and 23.2% year-to-date. Net interest income has seen robust growth of 16.0% for the quarter, indicating a favorable net interest margin environment. While total assets and loans have grown modestly, the company has also seen an increase in its provision for credit losses, suggesting a prudent approach to potential credit risks. Noninterest income, particularly from wealth management, continues to show positive growth, contributing to revenue diversification.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share NIC New York Stock Exchange

Filing Documents

• nic-20250930.htm (10-Q) — 3475KB
• nic-09302025x10qxex101.htm (EX-10.1) — 55KB
• nic-3q25x10qxex311.htm (EX-31.1) — 10KB
• nic-3q25x10qxex312.htm (EX-31.2) — 10KB
• nic-3q25x10qxex321.htm (EX-32.1) — 4KB
• nic-3q25x10qxex322.htm (EX-32.2) — 4KB
• exhibitbsection83belection.jpg (GRAPHIC) — 73KB
• nic-20250930_g1.jpg (GRAPHIC) — 57KB
• 0001174850-25-000062.txt ( ) — 16151KB
• nic-20250930.xsd (EX-101.SCH) — 50KB
• nic-20250930_cal.xml (EX-101.CAL) — 113KB
• nic-20250930_def.xml (EX-101.DEF) — 412KB
• nic-20250930_lab.xml (EX-101.LAB) — 775KB
• nic-20250930_pre.xml (EX-101.PRE) — 624KB
• nic-20250930_htm.xml (XML) — 3806KB

Financial Statements

Financial Statements: Consolidated Balance Sheets 3 Consolidated Statements of Income 4 Consolidated Statements of Comprehensive Income (Loss) 5 Consolidated Statements of Stockholders' Equity 6 Consolidated Statements of Cash Flows 7 Notes to Unaudited Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 29 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 48 Item 4.

Controls and Procedures

Controls and Procedures 48 PART II OTHER INFORMATION Item 1A.

Risk Factors

Risk Factors 48 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 51 Item 5. Other Information 51 Item 6. Exhibits 51

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

Item 1. FINANCIAL STATEMENTS: NICOLET BANKSHARES, INC. Consolidated Balance Sheets (In thousands, except share and per share data) September 30, 2025 December 31, 2024 (Unaudited) (Audited) Assets Cash and due from banks $ 94,402 $ 115,943 Interest-earning deposits 379,555 420,104 Cash and cash equivalents 473,957 536,047 Securities available for sale ("AFS"), at fair value 861,534 806,415 Other investments 61,380 62,125 Loans held for sale 11,308 7,637 Loans 6,874,711 6,626,584 Allowance for credit losses - loans ("ACL-Loans") ( 68,785 ) ( 66,322 ) Loans, net 6,805,926 6,560,262 Premises and equipment, net 121,711 126,979 Bank owned life insurance ("BOLI") 190,979 186,448 Goodwill and other intangibles, net 383,693 388,140 Accrued interest receivable and other assets 118,942 122,742 Total assets $ 9,029,430 $ 8,796,795 Liabilities and Stockholders' Equity Liabilities: Noninterest-bearing demand deposits $ 1,826,453 $ 1,791,228 Interest-bearing deposits 5,785,012 5,612,456 Total deposits 7,611,465 7,403,684 Long-term borrowings 134,600 161,387 Accrued interest payable and other liabilities 68,405 58,826 Total liabilities 7,814,470 7,623,897 Stockholders' Equity: Common stock 148 154 Additional paid-in capital 581,815 655,540 Retained earnings 662,252 565,772 Accumulated other comprehensive income (loss) ( 29,255 ) ( 48,568 ) Total stockholders' equity 1,214,960 1,172,898 Total liabilities and stockholders' equity $ 9,029,430 $ 8,796,795 Preferred shares authorized ( no par value) 10,000,000 10,000,000 Preferred shares issued and outstanding — — Common shares authorized (par value $ 0.01 per share) 30,000,000 30,000,000 Common shares outstanding 14,798,895 15,356,785 Common shares issued 14,913,415 15,450,298 See accompanying notes to unaudited consolidated financial statements. 3

Financial Statements Continued

ITEM 1. Financial Statements Continued : NICOLET BANKSHARES, INC. Consolidated Statements of Income (In thousands, except share and per share data) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Interest income: Loans, including loan fees $ 107,930 $ 100,824 $ 314,572 $ 292,447 Investment securities: Taxable 6,201 5,211 17,788 14,824 Tax-exempt 998 1,095 3,064 3,485 Other interest income 5,204 5,492 15,288 14,775 Total interest income 120,333 112,622 350,712 325,531 Interest expense: Deposits 39,312 42,060 119,249 122,436 Short-term borrowings — 2 — 2 Long-term borrowings 1,757 2,194 5,884 6,578 Total interest expense 41,069 44,256 125,133 129,016 Net interest income 79,264 68,366 225,579 196,515 Provision for credit losses 950 750 3,500 2,850 Net interest income after provision for credit losses 78,314 67,616 222,079 193,665 Noninterest income: Wealth management fee income 7,629 7,085 21,415 20,244 Mortgage income, net 3,568 2,853 8,401 6,851 Service charges on deposit accounts 2,000 1,913 5,987 5,307 Card interchange income 3,752 3,564 10,788 10,120 BOLI income 1,654 1,455 4,503 4,027 Deferred compensation plan asset market valuations 972 1,162 2,454 1,390 LSR income, net 668 1,090 2,675 3,341 Asset gains (losses), net 1,294 1,177 741 3,702 Other noninterest income 2,082 2,079 5,511 6,427 Total noninterest income 23,619 22,378 62,475 61,409 Noninterest expense: Personnel 29,437 28,937 85,072 81,732 Occupancy, equipment and office 9,028 8,826 27,462 26,451 Business development and marketing 2,223 1,823 5,916 6,005 Data processing 4,671 4,535 13,878 13,086 Intangibles amortization 1,414 1,694 4,447 5,289 FDIC assessments 1,005 990 2,974 3,013 Other noninterest expense 2,310 2,343 8,045 7,572 Total noninterest expense 50,088 49,148 147,794 143,148 Income before income tax expense 51,845 40,846 136,760 111,926 Income tax expense 10,110 8,330 26,398 22,347 Net income

Financial Statements Continued

ITEM 1. Financial Statements Continued : NICOLET BANKSHARES, INC. Consolidated Statements of Comprehensive Income (Loss) (In thousands) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net income $ 41,735 $ 32,516 $ 110,362 $ 89,579 Other comprehensive income (loss), net of tax: Unrealized gains (losses) on securities AFS: Net unrealized holding gains (losses) 9,992 26,467 24,903 24,967 Net realized (gains) losses included in income ( 103 ) — ( 107 ) ( 968 ) Income tax (expense) benefit ( 2,225 ) ( 5,601 ) ( 5,483 ) ( 5,222 ) Total other comprehensive income (loss) 7,664 20,866 19,313 18,777 Comprehensive income (loss) $ 49,399 $ 53,382 $ 129,675 $ 108,356 See accompanying notes to unaudited consolidated financial statements. 5

Financial Statements Continued

ITEM 1. Financial Statements Continued : NICOLET BANKSHARES, INC. Consolidated Statements of Stockholders' Equity (In thousands) (Unaudited) Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Balances at June 30, 2025 $ 149 $ 601,625 $ 625,243 $ ( 36,919 ) $ 1,190,098 Comprehensive income: Net income, three months ended September 30, 2025 — — 41,735 — 41,735 Other comprehensive income (loss) — — — 7,664 7,664 Stock-based compensation expense — 1,691 — — 1,691 Cash dividends on common stock, $ 0.32 per share — — ( 4,726 ) — ( 4,726 ) Exercise of stock options, net 1 ( 1,001 ) — — ( 1,000 ) Issuance of common stock — 23 — — 23 Purchase and retirement of common stock ( 2 ) ( 20,523 ) — — ( 20,525 ) Balances at September 30, 2025 $ 148 $ 581,815 $ 662,252 $ ( 29,255 ) $ 1,214,960 Balances at June 30, 2024 $ 150 $ 639,159 $ 507,366 $ ( 55,262 ) $ 1,091,413 Comprehensive income: Net income, three months ended September 30, 2024 — — 32,516 — 32,516 Other comprehensive income (loss) — — — 20,866 20,866 Stock-based compensation expense — 1,521 — — 1,521 Cash dividends on common stock, $ 0.28 per share — — ( 4,244 ) — ( 4,244 ) Exercise of stock options, net 1 7,098 — — 7,099 Issuance of common stock — 156 — — 156 Balances at September 30, 2024 $ 151 $ 647,934 $ 535,638 $ ( 34,396 ) $ 1,149,327 Balances at December 31, 2024 $ 154 $ 655,540 $ 565,772 $ ( 48,568 ) $ 1,172,898 Comprehensive income: Net income, nine months ended September 30, 2025 — — 110,362 — 110,362 Other comprehensive income (loss) — — — 19,313 19,313 Stock-based compensation expense — 5,278 — — 5,278 Cash dividends on common stock, $ 0.92 per share — — ( 13,882 ) — ( 13,882 ) Exercise of stock options, net 1 ( 2,528 ) — — ( 2,527 ) Issuance of common stock — 79 — — 79 Purchase and retirement of common stock ( 7 ) ( 76,554 ) — — ( 76,561 ) Balances at September 30, 2025 $ 148 $ 581,815 $ 662,252 $ ( 29,2

Financial Statements Continued

ITEM 1. Financial Statements Continued : NICOLET BANKSHARES, INC. Consolidated Statements of Cash Flows (Unaudited) (In thousands) Nine Months Ended September 30, 2025 2024 Cash Flows From Operating Activities: Net income $ 110,362 $ 89,579 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation, amortization, and accretion 10,981 13,604 Provision for credit losses 3,500 2,850 Increase in cash surrender value of life insurance ( 4,503 ) ( 4,027 ) Stock-based compensation expense 5,278 5,117 Asset (gains) losses, net ( 741 ) ( 3,702 ) Gain on sale of loans held for sale, net ( 6,991 ) ( 6,256 ) Proceeds from sale of loans held for sale 205,786 169,511 Origination of loans held for sale ( 204,692 ) ( 171,974 ) Net change in accrued interest receivable and other assets ( 2,254 ) 4,019 Net change in accrued interest payable and other liabilities 9,829 1,643 Net cash provided by (used in) operating activities 126,555 100,364 Cash Flows From Investing Activities: Net (increase) decrease in loans ( 245,485 ) ( 199,100 ) Purchases of securities AFS ( 112,035 ) ( 86,045 ) Proceeds from sales of securities AFS 9,425 4,987 Proceeds from calls and maturities of securities AFS 71,376 80,472 Purchases of other investments ( 3,234 ) ( 915 ) Proceeds from sales of other investments 4,495 5,884 Purchases of BOLI — ( 11,500 ) Net (increase) decrease in premises and equipment ( 1,003 ) ( 11,202 ) Net (increase) decrease in other real estate and other assets 326 ( 264 ) Net cash provided by (used in) investing activities ( 276,135 ) ( 217,683 ) Cash Flows From Financing Activities: Net increase (decrease) in deposits 207,781 62,197 Repayments of long-term borrowings ( 27,400 ) ( 5,172 ) Purchase and retirement of common stock ( 76,561 ) — Cash dividends paid on common stock ( 13,882 ) ( 12,202 ) Proceeds from issuance of common stock 79 585 Proceeds from issuance of common stock in stock-ba

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