Core Insights - Nicolet Bankshares (NIC) reported quarterly earnings of $2.66 per share, exceeding the Zacks Consensus Estimate of $2.34 per share, and showing an increase from $2.04 per share a year ago, resulting in an earnings surprise of +13.68% [1] - The company achieved revenues of $103.32 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 7.62%, compared to $91.24 million in the same quarter last year [2] - Nicolet Bankshares has outperformed the S&P 500, with shares increasing by approximately 24.2% since the beginning of the year, compared to the S&P 500's gain of 13.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.31 on revenues of $96.4 million, and for the current fiscal year, it is $9.08 on revenues of $377.5 million [7] - The estimate revisions trend for Nicolet Bankshares was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Zacks Industry Rank for Banks - Northeast places it in the top 24% of over 250 Zacks industries, suggesting that stocks in the top 50% of Zacks-ranked industries outperform those in the bottom 50% by more than 2 to 1 [8] - Another company in the same industry, Princeton Bancorp (BPRN), is expected to report quarterly earnings of $1.00 per share, reflecting a year-over-year change of +58.7%, with revenues projected at $22.5 million, up 17.4% from the previous year [9]

Financial Performance - Record net income of $42 million for Q3 2025, up from $36 million in Q2 2025 and $33 million in Q3 2024[1] - Earnings per diluted common share increased to $2.73 in Q3 2025, compared to $2.34 in Q2 2025 and $2.10 in Q3 2024[1] - Net income for Q3 2025 was $41,735,000, a 28.5% increase from $32,516,000 in Q3 2024[14] - Basic earnings per share for Q3 2025 were $2.81, up from $2.16 in Q3 2024, representing a 30.1% increase[14] - Adjusted net income (Non-GAAP) for the same period was $40,693,000, compared to $36,195,000 in the prior quarter, reflecting a growth of approximately 4.1%[20] - The diluted earnings per common share (GAAP) for Q3 2025 was $2.73, up from $2.34 in Q2 2025, representing an increase of 16.7%[20] - The adjusted diluted earnings per common share (Non-GAAP) for Q3 2025 was $2.66, compared to $2.35 in Q2 2025, reflecting a growth of 13.2%[20] Asset and Loan Growth - Total assets reached $9.0 billion at September 30, 2025, an increase of $99 million from June 30, 2025[3] - Total assets as of September 30, 2025, were $8,984,344,000, an increase from $8,596,812,000 a year earlier, reflecting a growth of 4.5%[15] - Loans outstanding increased to $6,843,189,000 in Q3 2025, compared to $6,542,532,000 in Q3 2024, indicating a growth of 4.6%[15] - Total loans increased by $36 million from June 30, 2025, primarily in construction and agricultural loans[3] - Total loans as of September 30, 2025, reached $6,874,711,000, an increase from $6,839,141,000 in the previous quarter[17] Deposits and Capital - Core deposits grew by $223 million (13% annualized) during Q3 2025[5] - Total deposits increased to $7,611,465,000 as of September 30, 2025, compared to $7,541,673,000 in the prior quarter, reflecting a growth of 0.92%[17] - Total capital increased to $1.2 billion at September 30, 2025, up $25 million from June 30, 2025[3] Income and Interest Metrics - Total interest income for Q3 2025 reached $120,333,000, an increase of 6.9% compared to $112,622,000 in Q3 2024[14] - Net interest income after provision for credit losses was $78,314,000 for Q3 2025, up from $67,616,000 in Q3 2024, reflecting a year-over-year increase of 15.8%[14] - Net interest income for the three months ended September 30, 2025, was $79,696,000, with a net interest margin of 3.86%[18] - Net interest margin improved to 3.86%, up 14 basis points from Q2 2025[5] - The average interest rate on interest-bearing core deposits was 2.51% for the nine months ended September 30, 2025[18] Noninterest Income and Efficiency - Noninterest income for Q3 2025 was $24 million, an increase of $3 million from Q2 2025[8] - Noninterest income totaled $23,619,000 in Q3 2025, compared to $22,378,000 in Q3 2024, marking a 5.5% increase[14] - The efficiency ratio improved to 49.10% in Q3 2025, down from 54.57% in Q3 2024, indicating better cost management[15] Share Repurchase and Stock Metrics - The company repurchased 155,393 common shares for $21 million during Q3 2025[5] - Common stock repurchased in Q3 2025 amounted to $20,525,000, with 155,393 shares repurchased[15] Nonperforming Assets - Nonperforming assets were $28 million, representing 0.31% of total assets at September 30, 2025[4] Tax and Equity Metrics - The effective tax rate assumed for adjustments was 19.5%, which is critical for understanding the adjusted net income calculations[21] - Tangible common equity stood at $831,267,000 as of September 30, 2025, an increase from $804,991,000 in the previous quarter, reflecting a growth of 3.3%[20] - Average tangible common equity for the nine months ended September 30, 2025, was $800,025,000, compared to $687,026,000 for the same period last year, showing a significant increase of 16.4%[20]

Core Viewpoint - The merger between Nicolet Bankshares, Inc. and MidWestOne Financial Group, Inc. aims to create a leading community banking franchise in the Upper Midwest, enhancing their market presence and operational efficiencies [1][4]. Financial Overview - The combined entity will have pro forma total assets of $15.3 billion, deposits of $13.1 billion, and loans of $11.3 billion as of September 30, 2025 [2]. - The merger consideration is valued at approximately $864 million, translating to $41.37 per share for MidWestOne shareholders, based on Nicolet's stock price of $130.31 as of October 22, 2025 [3]. Transaction Structure - The merger will be executed as an all-stock transaction, with MidWestOne shareholders receiving 0.3175 shares of Nicolet common stock for each share they own [3]. - Upon completion, MidWestOne shareholders are expected to hold 30% of the combined company's outstanding shares [3]. Leadership and Strategic Intent - Leadership from both companies expressed enthusiasm about the merger, emphasizing a shared commitment to community service and customer relationships [4]. - The merger is described as transformational for Nicolet, with a focus on not just growth but also improving banking services [4]. Market Position and Synergies - The merger will create one of the largest community banks in the Upper Midwest, with significant economies of scale and strong profitability metrics [4]. - The combined bank will have a complementary geographic footprint, enhancing market share in Wisconsin, Iowa, Eastern Minnesota, and Northern Michigan [4]. Earnings Impact - Excluding certain merger-related charges, the transaction is anticipated to be approximately 37% accretive to 2026 earnings, with a negligible earnback period for tangible book value per share [5]. - The merger is subject to customary conditions, including regulatory approvals and shareholder votes, expected to close in the first half of 2026 [5]. Governance - The Board of Directors of the combined company will consist of eight members from Nicolet and four from MidWestOne [5]. - All directors and named executive officers from both companies have agreed to support the merger [6]. Advisory and Legal Support - Keefe, Bruyette & Woods served as financial advisor for Nicolet, while Piper Sandler & Co. provided similar services for MidWestOne [7].

Core Viewpoint - Nicolet Bankshares, Inc. has announced the extension of CEO Mike Daniels' leadership through the end of 2030, highlighting the company's commitment to stable leadership and growth [1]. Company Overview - Nicolet Bankshares was founded in 2000 by Mike Daniels and Bob Atwell, achieving one of the largest capital raises for a de novo bank in Wisconsin's history [1]. - The company has grown to approximately $9 billion in assets, positioning itself near the top of its peer group [1].

Core Viewpoint - Delota Corp. reported strong financial results for Q1 2026, achieving $10 million in revenue and positive Adjusted EBITDA of $351,000, marking the ninth consecutive quarter of positive Adjusted EBITDA and reflecting operational efficiencies and strategic growth initiatives [4][6][7]. Financial Highlights - Total revenue for Q1 2026 was $10,043,670, an increase from $9,883,883 in Q1 2025, representing a growth of approximately 1.6% [7][10]. - The gross profit margin for Q1 2026 was 36%, down from 40% in Q1 2025 [6][7]. - Positive Adjusted EBITDA for Q1 2026 was $351,800, compared to $105,366 in Q1 2025, indicating significant improvement [7][14]. - Revenue segmentation for Q1 2026 included: - Vape - B2C: $7.7 million - Vape - B2B: $1.4 million - Cannabis - B2C: $1.0 million [6][7]. Other Highlights - The company completed the early redemption of $900,000 in senior secured convertible debentures, enhancing its balance sheet [4][6]. - Delota has a customer base exceeding 300,000 registered accounts across its online and physical retail platforms [6][15]. - The company is focused on expanding its retail footprint and enhancing its e-commerce platform as part of its growth strategy [15].

Financial Data and Key Metrics Changes - Adjusted EBITDA for the first half of 2025 was $159.3 million, slightly above the $155.7 million recorded in 2024, with profit after tax increasing by 80% to $25.5 million from $14 million in 2024 [3][11][12] - Gross profit rose to $114.8 million, up 19%, and operating profit increased by 12% to $98.7 million [8] - Total liabilities decreased slightly due to amortizing debt, with a focus on refinancing to extend tenor and lower costs [10] Business Line Data and Key Metrics Changes - The Hangzhou mine produced over 11.5 million wet metric tons, with adjusted EBITDA of $70.3 million, a significant improvement from 2024 [4][16] - RKF operations saw lower EBITDA due to higher costs and ore shortages, despite an improving NPI price [9][12] - HPAL operations performed well, with production above 2024 levels and stable cash costs, resulting in EBITDA per ton margins around $5,900 [14][15] Market Data and Key Metrics Changes - NPI price increased from $11,290 to $11,350, while cash costs rose from $9,716 to $10,117 due to higher oil prices [12][13] - The company is experiencing a slight upward trend in nickel prices, which is expected to positively impact future margins [13] Company Strategy and Development Direction - The company is focused on responsible and sustainable mining, with initiatives like the Nickel Industries Foundation and a conservation area within the Hengjai mining concession [2][3] - Development of the Sampala project is progressing well, with expectations to host over 1 billion wet metric tons [6][19] - The company aims to double production at the Hengdai mine and is targeting commissioning of the cathode plant by late 2025 [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance despite challenges in nickel prices, highlighting strong growth in the mining sector [42] - The company anticipates further growth with the imminent release of an RKB that requires no CapEx for increased mine sales [42] Other Important Information - The company has deferred payments for E and C totaling $126.5 million to January and April, allowing for additional production and EBITDA [11] - The cathode plant is expected to be commissioned in October or November, with all key equipment fabricated and erected [17][35] Q&A Session Summary Question: Update on debt refinancing and balance sheet management - Management confirmed entering a commitment letter for a $100 million loan facility to support working capital and is evaluating alternative debt funding options [21][23] Question: Dividend withdrawal reasoning - Management stated the withdrawal is a prudent balance sheet management decision, prioritizing financial stability over dividend payouts [26] Question: Update on VAT refunds and timing - Management expects the $110 million VAT refunds within the next six to twelve months and is in dialogue with the Indonesian government [28][29] Question: Timing for environmental study approval and production targets - Management indicated that the RKB approval is expected by September, with Sampala targeting 6 million tonnes per annum by the end of the year [30] Question: Factors influencing commissioning of the cathode plant - Management explained the delay in commissioning is due to high working capital demands and the need to ensure a strong balance sheet [34][36]

Financial Data and Key Metrics Changes - For the first half of 2025, adjusted EBITDA was US$159.3 million, slightly above the US$155.7 million recorded in 2024, with profit after tax increasing by 80% to US$25.5 million from US$14 million in 2024 [3][11][42] - Gross profit reached US$114.8 million, up 19%, and operating profit was US$98.7 million, up 12% [7] Business Line Data and Key Metrics Changes - The Hangzhou mine produced over 11.5 million wet metric tons, with adjusted EBITDA of US$70.3 million, a significant improvement compared to 2024 [4][16] - RKF operations saw lower EBITDA due to higher costs and ore shortages, despite an improving NPI price [8][12] - HPAL operations performed well, with production above 2024 levels and stable cash costs, resulting in EBITDA margins around US$5,900 per ton [14][15] Market Data and Key Metrics Changes - NPI prices increased from US$11,290 to US$11,350, while cash costs rose from US$9,716 to US$10,117 due to higher oil prices [13][12] - The combined EBITDA for HNC and Syncreation increased by 20% to 27.7% in 2025 [15] Company Strategy and Development Direction - The company is focused on responsible and sustainable mining, with initiatives like the Nickel Industries Foundation for social and economic development in Indonesia [2] - Development of the Sampala project is progressing well, with expectations to host over 1 billion wet metric tons [6] - The company aims to achieve gold status in responsible mining ratings and is working on increasing production capacity at the Hengjai mine [5][19] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance despite challenges in nickel prices, highlighting strong growth in the mining sector [42] - The company anticipates further growth with the imminent release of an RKB that requires no CapEx for increased mine sales [42] Other Important Information - The company has deferred payments for E and C totaling US$126.5 million to January and April, allowing for further production and EBITDA [11] - The cathode plant is expected to be commissioned in October or November, with all key equipment fabricated and erected [17][34] Q&A Session Summary Question: Update on debt refinancing and other levers - Management confirmed entering a commitment letter for a US$100 million loan facility to support working capital and is evaluating alternative debt funding options [22][23] Question: Dividend withdrawal reasoning - Management stated that the withdrawal of the dividend is a case of prudent balance sheet management [25] Question: Update on VAT refunds - Management expects the US$110 million VAT refunds within the next six to twelve months and is in dialogue with the Indonesian government [27][28] Question: Timing for environmental study approval - Management expects the RKB approval for the Penguja mine by September and for Sampala by the end of the year [29] Question: Factors for commissioning the cathode plant - Management decided to delay commissioning due to high working capital draw and costs associated with MHP, aiming for October or November [34][36]

Financial Performance - Sales revenue decreased by 2% from US$843.3 million in 1H 2024 to US$829.7 million in 1H 2025[10] - Gross profit increased by 19% from US$96.3 million in 1H 2024 to US$114.8 million in 1H 2025[10] - Operating profit increased by 12% from US$87.8 million in 1H 2024 to US$98.7 million in 1H 2025[10] - Profit after tax increased significantly by 81% from US$14.0 million in 1H 2024 to US$25.3 million in 1H 2025[10] - Adjusted EBITDA from RKEF decreased by 28% from US$109.0 million in 1H 2024 to US$78.3 million in 1H 2025[10] - Adjusted EBITDA from the mine increased substantially by 76% from US$39.9 million in 1H 2024 to US$70.3 million in 1H 2025[10] - Attributable EBITDA from HPAL increased by 20% from US$22.6 million in 1H 2024 to US$27.1 million in 1H 2025[10] Operational Highlights - RKEF operations saw a slight decrease of 2% in total nickel production, from 63,814 tonnes in 1H 2024 to 62,257 tonnes in 1H 2025[9, 14] - Hengjaya Mine production and sales increased by 90% and 81% respectively compared to the previous corresponding period (pcp)[10, 19] - Limonite mined increased by 121% from 4,177,937 wmt in 1H 2024 to 9,237,715 wmt in 1H 2025[19] - HPAL operations (HNC) nickel production in MHP increased by 2% from 41,172 tonnes in 1H 2024 to 41,934 tonnes in 1H 2025[9, 17] Balance Sheet and Dividends - The company declared a final dividend of A$0.015 per share for the full year 2024 financial result, a 40% decrease from A$0.025 in the previous period[10]

PART I – FINANCIAL INFORMATION This section presents the company's unaudited consolidated financial statements and management's analysis of financial condition and results of operations [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20FINANCIAL%20STATEMENTS:) This section presents the unaudited consolidated financial statements, including balance sheets, statements of income, comprehensive income (loss), stockholders' equity, and cash flows, along with detailed notes explaining the basis of presentation, earnings per share, stock-based compensation, securities, loans, borrowings, commitments, fair value measurements, and segment information [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Details the company's financial position, including assets, liabilities, and equity, at specific reporting dates Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total Assets | $8,930,809 | $8,796,795 | | Loans, net | $6,770,733 | $6,560,262 | | Total Deposits | $7,541,673 | $7,403,684 | | Total Liabilities | $7,740,711 | $7,623,897 | | Total Stockholders' Equity | $1,190,098 | $1,172,898 | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Reports the company's revenues, expenses, and net income over specific periods Consolidated Statements of Income Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Interest Income | $75,109 | $65,342 | $146,315 | $128,149 | | Provision for Credit Losses | $1,050 | $1,350 | $2,550 | $2,100 | | Noninterest Income | $20,633 | $19,609 | $38,856 | $39,031 | | Noninterest Expense | $49,919 | $46,853 | $97,706 | $94,000 | | Net Income | $36,035 | $29,273 | $68,627 | $57,063 | | Basic EPS | $2.40 | $1.96 | $4.53 | $3.82 | | Diluted EPS | $2.34 | $1.92 | $4.42 | $3.74 | [Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Presents net income alongside other comprehensive income or loss components Consolidated Statements of Comprehensive Income (Loss) Highlights (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $36,035 | $29,273 | $68,627 | $57,063 | | Total other comprehensive income (loss) | $4,373 | $148 | $11,649 | ($2,089) | | Comprehensive income (loss) | $40,408 | $29,421 | $80,276 | $54,974 | [Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Outlines changes in the company's equity accounts, including net income, dividends, and stock transactions - Stockholders' equity increased to **$1,190,098 thousand** at June 30, 2025, from **$1,172,898 thousand** at December 31, 2024, driven by net income and other comprehensive income, partially offset by common stock repurchases and dividends[16](index=16&type=chunk) Key Stockholders' Equity Changes (Six Months Ended June 30, 2025, in thousands) | Item | Amount | | :------------------ | :----- | | Net income | $68,627 | | Other comprehensive income (loss) | $11,649 | | Stock-based compensation expense | $3,587 | | Cash dividends on common stock | ($9,156) | | Purchase and retirement of common stock | ($56,036) | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Summarizes the cash inflows and outflows from operating, investing, and financing activities Cash Flow Summary (Six Months Ended June 30, in thousands) | Activity | 2025 | 2024 | | :------------------------------------------- | :---------- | :---------- | | Net cash provided by (used in) operating activities | $80,694 | $60,718 | | Net cash provided by (used in) investing activities | ($238,029) | ($176,723) | | Net cash provided by (used in) financing activities | $43,926 | $33,104 | | Net increase (decrease) in cash and cash equivalents | ($113,409) | ($82,901) | | Cash and cash equivalents, Ending | $422,638 | $408,530 | - The decrease in cash and cash equivalents in 2025 was primarily driven by significant net cash used in investing activities, largely for loan growth, and net cash used in financing activities, including common stock repurchases and repayments of long-term borrowings[19](index=19&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Provides detailed explanations and additional information supporting the interim financial statements [Note 1 – Basis of Presentation](index=8&type=section&id=Note%201%20%E2%80%93%20Basis%20of%20Presentation) Explains the accounting principles, critical estimates, and recent accounting pronouncements applied in the financial statements - The interim consolidated financial statements are unaudited and prepared in accordance with SEC rules, with certain GAAP disclosures omitted or abbreviated, and should be read in conjunction with the Company's 2024 Annual Report on Form 10-K[23](index=23&type=chunk) - The determination of the allowance for credit losses is considered a critical accounting estimate due to the significant judgment involved[24](index=24&type=chunk) - ASU 2023-07 (Segment Reporting) was adopted on **January 1, 2024**, expanding segment disclosure requirements[26](index=26&type=chunk) - Future accounting pronouncements include ASU 2024-03 (Income Statement - Expense Disaggregation) and ASU 2023-09 (Income Taxes)[27](index=27&type=chunk)[28](index=28&type=chunk) [Note 2 – Earnings per Common Share](index=9&type=section&id=Note%202%20%E2%80%93%20Earnings%20per%20Common%20Share) Details the calculation of basic and diluted earnings per common share for the reporting periods Earnings Per Common Share (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $36,035 | $29,273 | $68,627 | $57,063 | | Basic earnings per common share | $2.40 | $1.96 | $4.53 | $3.82 | | Diluted earnings per common share | $2.34 | $1.92 | $4.42 | $3.74 | - Options to purchase less than **0.1 million shares** for 2025 and approximately **0.6 million shares** for 2024 were excluded from diluted EPS calculations as their exercise would have been anti-dilutive[32](index=32&type=chunk) [Note 3 – Stock-Based Compensation](index=9&type=section&id=Note%203%20%E2%80%93%20Stock-Based%20Compensation) Describes the company's stock-based compensation plans and related expenses - Approximately **0.5 million shares** were available for grant under stock-based compensation plans at June 30, 2025[33](index=33&type=chunk) - No stock options were granted for the six months ended June 30, 2025[34](index=34&type=chunk) Stock-Based Compensation Expense (Six Months Ended June 30, in thousands) | Item | 2025 | 2024 | | :------------------------------------------- | :------ | :------ | | Stock-based compensation expense (officers/employees) | $2,900 | $2,900 | | Director expense (restricted stock grants) | $700 | $700 | | Tax benefit from stock option exercises/vesting | $1,300 | $200 | [Note 4 – Securities and Other Investments](index=11&type=section&id=Note%204%20%E2%80%93%20Securities%20and%20Other%20Investments) Provides information on the company's investment securities, including fair value and unrealized gains/losses Securities AFS Fair Value and Unrealized Losses (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total Securities AFS (Fair Value) | $849,253 | $806,415 | | Gross Unrealized Gains | $3,193 | $1,217 | | Gross Unrealized Losses | $54,729 | $67,660 | - No allowance for credit losses on AFS securities was recognized, as unrealized losses are attributed to non-credit-related factors such as changes in interest rates, not credit deterioration[47](index=47&type=chunk) - Investment securities with a carrying value of **$434 million** at June 30, 2025, were pledged as collateral to secure public deposits and borrowings, and for liquidity or other regulatory purposes[45](index=45&type=chunk) [Note 5 – Loans, Allowance for Credit Losses - Loans, and Credit Quality](index=13&type=section&id=Note%205%20%E2%80%93%20Loans,%20Allowance%20for%20Credit%20Losses%20-%20Loans,%20and%20Credit%20Quality) Details the composition of the loan portfolio, allowance for credit losses, and credit quality metrics Loan Composition (in thousands) | Loan Type | June 30, 2025 | % of Total | December 31, 2024 | % of Total | | :------------------------ | :------------ | :--------- | :---------------- | :--------- | | Commercial & industrial | $1,412,621 | 20% | $1,319,763 | 20% | | Agricultural | $1,346,924 | 20% | $1,322,038 | 20% | | CRE investment | $1,231,423 | 18% | $1,221,826 | 18% | | Residential first mortgage | $1,205,841 | 18% | $1,196,158 | 18% | | Total Loans | $6,839,141 | 100% | $6,626,584 | 100% | Allowance for Credit Losses - Loans (ACL-Loans, in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | ACL-Loans | $68,408 | $66,322 | | ACL-Loans to loans | 1.00% | 1.00% | Nonaccrual Loans by Portfolio Segment (in thousands) | Loan Type | June 30, 2025 | % of Total Nonaccrual | December 31, 2024 | % of Total Nonaccrual | | :------------------------ | :------------ | :-------------------- | :---------------- | :-------------------- | | Commercial & industrial | $6,317 | 23% | $8,534 | 30% | | Owner-occupied CRE | $7,114 | 26% | $4,547 | 16% | | Agricultural | $11,619 | 42% | $9,969 | 35% | | Total Nonaccrual Loans | $27,735 | 100% | $28,419 | 100% | [Note 6 – Goodwill and Other Intangibles and Servicing Rights](index=24&type=section&id=Note%206%20%E2%80%93%20Goodwill%20and%20Other%20Intangibles%20and%20Servicing%20Rights) Reports the carrying values of goodwill, other intangible assets, and mortgage servicing rights Goodwill and Other Intangibles, Net (in thousands) | Asset Type | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Goodwill | $367,387 | $367,387 | | Core deposit intangibles | $16,072 | $18,815 | | Customer list intangibles | $1,648 | $1,938 | | Total | $385,107 | $388,140 | - No impairment was indicated for goodwill and other intangibles for the six months ended June 30, 2025, or the year ended December 31, 2024[79](index=79&type=chunk) Servicing Rights Asset, Net (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Servicing rights asset, net | $18,042 | $18,834 | | Residential mortgage loans serviced for others | $1,616,737 | $1,644,821 | | Agricultural loans serviced for others | $414,204 | $438,954 | [Note 7 – Short and Long-Term Borrowings](index=26&type=section&id=Note%207%20%E2%80%93%20Short%20and%20Long-Term%20Borrowings) Outlines the company's outstanding short-term and long-term debt obligations - The Company did not have any short-term borrowings outstanding at either **June 30, 2025**, or **December 31, 2024**[88](index=88&type=chunk) Long-Term Borrowings (in thousands) | Borrowing Type | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | FHLB advances | $0 | $5,000 | | Junior subordinated debentures | $41,799 | $41,384 | | Subordinated notes | $92,541 | $115,003 | | Total long-term borrowings | $134,340 | $161,387 | - The County Subordinated Notes due 2030, which were assumed in a December 2021 acquisition, were called and are no longer outstanding at **June 30, 2025**[93](index=93&type=chunk)[96](index=96&type=chunk) [Note 8 – Commitments and Contingencies](index=27&type=section&id=Note%208%20%E2%80%93%20Commitments%20and%20Contingencies) Discloses off-balance sheet commitments and potential contingent liabilities Off-Balance Sheet Risk Exposure (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :------------------------------ | :------------ | :---------------- | | Commitments to extend credit | $2,035,947 | $2,038,871 | | Financial standby letters of credit | $23,163 | $15,683 | | Performance standby letters of credit | $18,839 | $15,503 | - Interest rate lock commitments to originate residential mortgage loans held for sale and forward commitments to sell residential mortgage loans held for sale (mortgage derivatives) increased significantly from **$13 million** and **$12 million**, respectively, at December 31, 2024, to **$41 million** and **$40 million** at June 30, 2025[104](index=104&type=chunk) [Note 9 – Fair Value Measurements](index=28&type=section&id=Note%209%20%E2%80%93%20Fair%20Value%20Measurements) Explains the methodologies and categorization of assets and liabilities measured at fair value - Fair value measurements are categorized into **Level 1** (quoted market prices in active markets), **Level 2** (observable inputs other than Level 1), and **Level 3** (significant unobservable inputs)[108](index=108&type=chunk) Recurring Fair Value Measurements (Securities AFS, in thousands) | Asset Type | June 30, 2025 | Level 1 | Level 2 | Level 3 | | :-------------------------- | :------------ | :------ | :-------- | :------ | | Securities AFS | $849,253 | $0 | $842,688 | $6,565 | | Other investments (equity securities) | $8,456 | $8,456 | $0 | $0 | Nonrecurring Fair Value Measurements (in thousands) | Asset Type | June 30, 2025 | Level 1 | Level 2 | Level 3 | | :-------------------------- | :------------ | :------ | :------ | :-------- | | Collateral dependent loans | $23,290 | $0 | $0 | $23,290 | | MSR asset (disclosure) | $16,274 | $0 | $0 | $16,274 | [Note 10 – Segment Information](index=31&type=section&id=Note%2010%20%E2%80%93%20Segment%20Information) Identifies the company's operating segments and provides financial information for each - The Company adopted ASU 2023-07, Segment Reporting, on **January 1, 2024**[122](index=122&type=chunk) - The Company operates as a single banking segment, providing a broad array of loan and deposit products to businesses, consumers, and government municipalities[122](index=122&type=chunk)[123](index=123&type=chunk) - There were no adjustments or reconciling items between the banking segment's net income and consolidated net income, or between segment total assets and consolidated total assets[123](index=123&type=chunk)[124](index=124&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's analysis of Nicolet's consolidated financial condition and results of operations, including an overview, performance summary, detailed income statement and balance sheet analysis, and discussion of critical accounting estimates. It highlights significant growth in net income, net interest income, loans, and deposits, alongside stable asset quality and strong capital ratios [Overview](index=32&type=section&id=Overview) Introduces the company's business, geographic focus, and highlights the forward-looking nature of the report - Nicolet Bankshares, Inc. is a bank holding company headquartered in Green Bay, Wisconsin, providing traditional banking and wealth management services primarily in Wisconsin, Michigan, and Minnesota[125](index=125&type=chunk) - The document contains forward-looking statements that are subject to various risks and uncertainties, including strategic, market, operating, legal, regulatory, economic, and cybersecurity risks[126](index=126&type=chunk)[128](index=128&type=chunk) [Performance Summary](index=35&type=section&id=Performance%20Summary) Provides a high-level review of key financial results and operational achievements for the period Key Performance Metrics (Six Months Ended June 30, in thousands, except per share data) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :------------------------------------------- | :---------- | :---------- | :--------- | :--------- | | Net Income (GAAP) | $68,627 | $57,063 | +$11,564 | +20.3% | | Diluted EPS (GAAP) | $4.42 | $3.74 | +$0.68 | +18.2% | | Net Interest Income | $146,315 | $128,149 | +$18,166 | +14.2% | | Net Interest Margin | 3.65% | 3.37% | +0.28% | | | Loans (period end) | $6,839,141 | $6,529,134 | +$310,007 | +4.7% | | Total Deposits (period end) | $7,541,673 | $7,241,078 | +$300,595 | +4.1% | - Noninterest income was minimally changed from the first six months of 2024, while noninterest expense increased by **$4 million** (**4%**) due to higher personnel costs and non-personnel expenses[141](index=141&type=chunk) [Income Statement Analysis](index=36&type=section&id=Income%20Statement%20Analysis) Analyzes the components of the income statement, including net interest income, noninterest income, and expenses [Net Interest Income](index=36&type=section&id=Net%20Interest%20Income) Examines the primary source of bank revenue, detailing changes in interest income and expense - Tax-equivalent net interest income increased by **$18 million** (**14%**) to **$147 million** for the first six months of 2025, attributable to both favorable rates (**$6 million**) and favorable volumes (**$12 million**)[152](index=152&type=chunk) - The tax-equivalent net interest margin improved by **28 bps** to **3.65%** for the first half of 2025, compared to **3.37%** for the first half of 2024[155](index=155&type=chunk) Average Balance Sheet and Net Interest Income Analysis (Six Months Ended June 30, in thousands) | Metric | 2025 Average Balance | 2025 Yield/Rate | 2024 Average Balance | 2024 Yield/Rate | | :-------------------- | :------------------- | :-------------- | :------------------- | :-------------- | | Total loans | $6,772,060 | 6.15% | $6,447,785 | 5.98% | | Total interest-earning assets | $8,109,756 | 5.74% | $7,681,109 | 5.59% | | Total interest-bearing liabilities | $5,962,651 | 2.84% | $5,584,262 | 3.05% | | Tax-equivalent net interest income and net interest margin | $147,249 | 3.65% | $129,129 | 3.37% | [Provision for Credit Losses](index=40&type=section&id=Provision%20for%20Credit%20Losses) Discusses the expense recognized for potential loan losses and its drivers - The provision for credit losses was **$2.6 million** for the six months ended June 30, 2025, an increase from **$2.1 million** in the comparable 2024 period, primarily due to growth and changes in the underlying loan portfolio[157](index=157&type=chunk) - The provision for credit losses is predominantly a function of management's methodology and judgment regarding qualitative and quantitative factors used to determine the appropriateness of the Allowance for Credit Losses (ACL)[158](index=158&type=chunk) [Noninterest Income](index=40&type=section&id=Noninterest%20Income) Reviews income generated from sources other than interest, such as fees and service charges - Total noninterest income was **$38.9 million** for the first half of 2025, a slight decrease of **$0.2 million** from the first half of 2024, largely due to changes in asset gains (losses)[160](index=160&type=chunk) Noninterest Income Highlights (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :------------------------------------------- | :------ | :------ | :--------- | :--------- | | Wealth management fee income | $13,786 | $13,159 | +$627 | +5% | | Mortgage income, net | $4,833 | $3,998 | +$835 | +21% | | Service charges on deposit accounts | $3,987 | $3,394 | +$593 | +17% | | Deferred compensation plan asset market valuations | $1,482 | $228 | +$1,254 | N/M | | Asset gains (losses), net | ($553) | $2,525 | ($3,078) | N/M | [Noninterest Expense](index=41&type=section&id=Noninterest%20Expense) Analyzes operational costs, including personnel, occupancy, and data processing expenses - Total noninterest expense increased by **$3.7 million** (**4%**) to **$97.7 million** for the first half of 2025 compared to the first half of 2024[166](index=166&type=chunk) Noninterest Expense Highlights (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :------------------------------------------- | :------ | :------ | :--------- | :--------- | | Personnel | $55,635 | $52,795 | +$2,840 | +5% | | Occupancy, equipment and office | $18,434 | $17,625 | +$809 | +5% | | Data processing | $9,207 | $8,551 | +$656 | +8% | | Intangibles amortization | $3,033 | $3,595 | ($562) | (16%) | [Income Taxes](index=41&type=section&id=Income%20Taxes) Details the company's income tax expense and effective tax rate for the reporting periods Income Tax Expense and Effective Rate (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | | :-------------------- | :---------- | :---------- | | Income tax expense | $16,288 | $14,017 | | Effective tax rate | 19.2% | 19.7% | - The change in income tax expense was mostly due to higher pretax earnings in 2025[170](index=170&type=chunk) [Income Statement Analysis – Three Months Ended June 30, 2025 versus Three Months Ended June 30, 2024](index=42&type=section&id=Income%20Statement%20Analysis%20%E2%80%93%20Three%20Months%20Ended%20June%2030,%202025%20versus%20Three%20Months%20Ended%20June%2030,%202024) Compares the company's financial performance for the second quarter of 2025 against the same period in 2024 Q2 2025 vs Q2 2024 Income Statement Highlights (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :------------------------------------------- | :---------- | :---------- | :--------- | :--------- | | Net Income | $36,035 | $29,273 | +$6,762 | +23.1% | | Diluted EPS | $2.34 | $1.92 | +$0.42 | +21.9% | | Tax-equivalent net interest income | $75,600 | $65,800 | +$9,800 | +14.9% | | Net interest margin | 3.72% | 3.42% | +0.30% | | | Noninterest income | $20,600 | $19,600 | +$1,000 | +5.1% | | Noninterest expense | $49,900 | $46,900 | +$3,000 | +6.4% | [Balance Sheet Analysis](index=42&type=section&id=Balance%20Sheet%20Analysis) Provides a detailed review of the company's assets, liabilities, and equity [Loans](index=43&type=section&id=Loans) Analyzes the composition and growth of the company's loan portfolio - Total loans increased by **$213 million** (**3%**) to **$6.8 billion** at June 30, 2025, from December 31, 2024, primarily in commercial and industrial loans[179](index=179&type=chunk) - The loan portfolio at June 30, 2025, was **76% commercial-based** and **24% retail-based**, with commercial and industrial and agricultural loans each representing **20%** of the total portfolio[178](index=178&type=chunk)[179](index=179&type=chunk) - Nicolet utilizes an active credit risk management process, including sound underwriting, systematic monitoring, and early problem loan identification, to manage overall credit quality[176](index=176&type=chunk) [Allowance for Credit Losses - Loans](index=45&type=section&id=Allowance%20for%20Credit%20Losses%20-%20Loans) Discusses the reserve set aside for potential loan defaults and its adequacy - The ACL-Loans was **$68 million**, representing **1.00%** of total loans at June 30, 2025, consistent with December 31, 2024, and June 30, 2024[188](index=188&type=chunk)[190](index=190&type=chunk) - The ACL-Loans is a critical accounting estimate, determined by evaluating qualitative and environmental factors such as loan portfolio characteristics, nonperforming loan levels, historical losses, and economic conditions[186](index=186&type=chunk) Net Loan (Charge-offs) Recoveries (Six Months Ended June 30, in thousands) | Loan Type | 2025 | 2024 | | :------------------------ | :------ | :------ | | Commercial & industrial | ($444) | ($240) | | Owner-occupied CRE | ($154) | $180 | | Agricultural | ($65) | $0 | | Retail & other | ($37) | ($273) | | Total net (charge-offs) recoveries | ($714) | ($296) | [Nonperforming Assets](index=46&type=section&id=Nonperforming%20Assets) Reports on assets that are not generating income due to borrower default or other issues - Nonperforming assets were **$29 million**, representing **0.32%** of total assets at June 30, 2025, a slight decrease from **0.33%** at December 31, 2024[191](index=191&type=chunk) - Nonperforming loans are defined as nonaccrual loans and loans **90 days or more** past due but still accruing interest[191](index=191&type=chunk) - Potential problem loans (loans rated Substandard but performing) increased to **$77 million** (**1%** of loans) at June 30, 2025, from **$68 million** at December 31, 2024, requiring heightened management review[192](index=192&type=chunk) [Deposits](index=48&type=section&id=Deposits) Examines the sources and composition of the company's deposit base - Total deposits increased by **$138 million** (**2%**) to **$7.5 billion** at June 30, 2025, from December 31, 2024, with core deposits increasing by **$130 million**[195](index=195&type=chunk) Period End Deposit Composition (in thousands) | Deposit Type | June 30, 2025 | % of Total | December 31, 2024 | % of Total | | :------------------------ | :------------ | :--------- | :---------------- | :--------- | | Noninterest-bearing demand | $1,800,335 | 24% | $1,791,228 | 24% | | Interest-bearing demand | $1,266,507 | 17% | $1,168,560 | 16% | | Money market | $1,900,639 | 25% | $1,942,367 | 26% | | Savings | $805,300 | 11% | $774,707 | 11% | | Time | $1,768,892 | 23% | $1,726,822 | 23% | | Total deposits | $7,541,673 | 100% | $7,403,684 | 100% | - Total estimated uninsured deposits were **$2.3 billion**, representing **31%** of total deposits at June 30, 2025[197](index=197&type=chunk) [Liquidity Management](index=48&type=section&id=Liquidity%20Management) Describes the company's strategies and resources for managing short-term cash needs - Cash and cash equivalents decreased by **$113 million** since year-end 2024, primarily due to **$238 million** net cash used in investing activities, mostly to fund loan growth[199](index=199&type=chunk) Liquidity Sources (in millions) | Source | June 30, 2025 | | :---------------------------- | :------------ | | Fed Funds Lines | $175 | | Brokered Capacity | $1,127 | | FHLB Borrowing Availability | $627 | | Fed Discount Window | $12 | | Total Liquidity Funding Availability | $1,941 | - The Parent Company had **$136 million** in cash at June 30, 2025, and regularly evaluates capital and liquidity positions to support the Bank and its other subsidiaries[201](index=201&type=chunk) [Interest Rate Sensitivity Management and Impact of Inflation](index=49&type=section&id=Interest%20Rate%20Sensitivity%20Management%20and%20Impact%20of%20Inflation) Assesses the company's exposure to interest rate fluctuations and inflation - The Company measures its overall interest rate sensitivity through a net interest income analysis, calculating the change in net interest income under hypothetical interest rate changes[204](index=204&type=chunk) Interest Rate Sensitivity (Projected Change in Net Interest Income over One Year) | Interest Rate Change | June 30, 2025 | December 31, 2024 | | :------------------- | :------------ | :---------------- | | 200 bps decrease | (3.5)% | (2.5)% | | 100 bps decrease | (1.7)% | (1.3)% | | 100 bps increase | 1.7 % | 1.3 % | | 200 bps increase | 3.4 % | 2.6 % | - Changes in interest rates have a more significant impact on a financial institution's performance than general inflation[208](index=208&type=chunk) [Capital](index=50&type=section&id=Capital) Reviews the company's regulatory capital ratios and capital management strategies - The Company's and the Bank's regulatory capital ratios remain above minimum requirements, with the Bank qualifying as well-capitalized under the prompt-corrective action framework[209](index=209&type=chunk) Company Risk-Based Capital Ratios | Ratio | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :---------------- | | Total capital ratio | 14.0 % | 14.3 % | | Tier 1 capital ratio | 11.8 % | 11.9 % | | Common equity Tier 1 capital ratio | 11.3 % | 11.4 % | | Tier 1 leverage ratio | 10.3 % | 10.5 % | - At June 30, 2025, **$40 million** remained authorized under the common stock repurchase program, representing an alternative use of capital[211](index=211&type=chunk) [Critical Accounting Estimates](index=51&type=section&id=Critical%20Accounting%20Estimates) Reaffirms the most significant accounting judgments and assumptions impacting financial reporting - The determination of the allowance for credit losses remains the critical accounting estimate for the Company[212](index=212&type=chunk) - There have been no changes in the Company's critical accounting policies and estimates since December 31, 2024[212](index=212&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section confirms that there have been no material changes in the company's market risk profile since the previous annual report, referring to the detailed discussion on interest rate sensitivity within the Management's Discussion and Analysis - No material changes in market risk were reported at June 30, 2025, from that presented in the Company's 2024 Annual Report on Form 10-K[213](index=213&type=chunk) [Item 4. Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the principal executive and financial officers, concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period, and no material changes in internal control over financial reporting occurred during the quarter - Management, under the supervision of the principal executive officer and principal financial officer, evaluated and concluded that disclosure controls and procedures were effective as of June 30, 2025[214](index=214&type=chunk) - There were no changes in the Company's internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[215](index=215&type=chunk) PART II – OTHER INFORMATION Contains additional disclosures not directly related to the financial statements, such as equity sales and exhibits [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section provides details on the company's common stock repurchases during the second quarter of 2025 under its authorized repurchase program, noting the number of shares purchased and the remaining authorization Common Stock Repurchases (Q2 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share ($) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs () | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs () | | :---------------------- | :------------------------------- | :------------------------------- | :------------------------------------------------------------------------------- | :--------------------------------------------------------------------------------- | | April 1 – April 30, 2025 | 107,667 | 109.60 | 93,219 | | | May 1 – May 31, 2025 | 89,481 | 122.47 | 82,689 | | | June 1 – June 30, 2025 | 89,008 | 119.69 | 81,494 | | | Total | 286,156 | 116.77 | 257,402 | 322,000 | - At June 30, 2025, approximately **$40 million**, or **322,000 shares** of common stock (based on the closing stock price of **$123.48**), remained available under the common stock repurchase program[219](index=219&type=chunk) [Item 5. Other Information](index=52&type=section&id=Item%205.%20Other%20Information) This section states that there are no Rule 10b5-1 and Non-Rule 10b5-1 Trading Arrangements to report for the period - No Rule 10b5-1 and Non-Rule 10b5-1 Trading Arrangements were reported[220](index=220&type=chunk) [Item 6. Exhibits](index=52&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including various certifications and interactive data files in Inline XBRL format - The report includes certifications from the CEO and CFO (Exhibits **31.1**, **31.2**, **32.1**, **32.2**) and interactive data files for the financial statements in Inline XBRL format (Exhibit **101**)[221](index=221&type=chunk) [Signatures](index=53&type=section&id=Signatures) This section contains the official signatures of the company's Chairman, President, and Chief Executive Officer, and the Chief Financial Officer, certifying the report - The report is signed by Michael E. Daniels (Chairman, President, and Chief Executive Officer) and H. Phillip Moore, Jr. (Chief Financial Officer) on **August 1, 2025**[225](index=225&type=chunk)

Core Viewpoint - Delota Corp. reported strong financial performance for the fourteen months ended March 31, 2025, with significant revenue growth and strategic initiatives aimed at expanding its market presence and profitability [4][5]. Financial Highlights - Total revenue reached $46.5 million for the fourteen months ended March 31, 2025, representing an increase from $34.1 million for the twelve months ended January 31, 2024 [10]. - The company achieved a gross profit margin of 38% during the same period [6]. - Adjusted EBITDA was approximately $1.2 million, a significant improvement from a loss of $2.0 million in the previous year [10][14]. - Revenue segmentation included $36.4 million from B2C vape sales, $6.0 million from B2B vape sales, and $4.1 million from B2C cannabis sales [11]. Operational Developments - The customer base expanded to over 300,000 registered accounts across online and brick-and-mortar platforms [4][6]. - The company completed the early redemption of $900,000 in senior secured convertible debentures, enhancing its balance sheet [4][11]. - Delota entered into a licensing agreement with 180 Global to expand its retail presence in Eastern Canada [11]. Strategic Initiatives - The company is focused on optimizing its omni-channel strategy and pursuing strategic mergers and acquisitions to accelerate growth [4][15]. - Delota aims to strengthen its flagship brand, 180 Smoke Vape Store, and enhance its national e-commerce platform [15].