Nicolet(NIC) - 2025 Q3 - Quarterly Report

Financial Performance - Nicolet Bankshares reported net interest income of $79,264,000 for the three months ended September 30, 2025, an increase of 5.7% from $75,109,000 in the previous quarter[134]. - The company’s net income for the three months ended September 30, 2025, was $41,735,000, representing a 15.5% increase compared to $36,035,000 for the same period in 2024[134]. - Basic earnings per share (EPS) for the three months ended September 30, 2025, was $2.81, compared to $2.40 in the previous quarter, reflecting a 17.1% increase[134]. - Net income for the nine months ended September 30, 2025, was $110 million, an increase from $90 million for the same period in 2024, resulting in diluted earnings per share of $7.14 compared to $5.84[146]. - Net interest income reached $226 million for the first nine months of 2025, up $29 million (15%) from the same period in 2024, with a net interest margin of 3.72% compared to 3.42%[146]. - Noninterest income for the nine months ended September 30, 2025, was $62.5 million, a $1.1 million increase (2%) from the comparable period in 2024[167]. Assets and Liabilities - Total assets as of September 30, 2025, reached $9,029,430,000, up from $8,930,809,000 at the end of the previous quarter[134]. - Stockholders' equity increased to $1,214,960,000 as of September 30, 2025, compared to $1,190,098,000 at the end of the previous quarter[134]. - Total assets increased to $9.0 billion at September 30, 2025, up $233 million (3%) from December 31, 2024, primarily due to solid loan growth[148]. - Total deposits reached $7.6 billion at September 30, 2025, an increase of $208 million from December 31, 2024, with core deposits growing by $353 million[148]. - Total interest-earning assets increased to $8,142,411 thousand in 2025, up from $7,729,346 thousand in 2024, reflecting a growth of 5.34%[149]. - Interest-bearing liabilities totaled $5,945,532 thousand in 2025, with a net interest expense of $125,133 thousand, down from $129,016 thousand in 2024, showing a decrease of 3.06%[149]. Credit Quality - Nicolet's provision for credit losses was $950,000 for the three months ended September 30, 2025, a decrease from $1,050,000 in the previous quarter[134]. - Nonperforming assets were $28 million, representing 0.31% of total assets at September 30, 2025, a slight decrease from 0.33% at December 31, 2024[146]. - The provision for credit losses was $3.5 million for the nine months ended September 30, 2025, compared to $2.9 million for the same period in 2024, reflecting growth in the loan portfolio[164]. - Total nonperforming loans amounted to $27.463 million, a decrease from $28.419 million at December 31, 2024[201]. - Potential problem loans were reported at $79 million, representing 1% of total loans as of September 30, 2025, an increase from $68 million (1% of loans) at December 31, 2024[200]. - The Allowance for Credit Losses (ACL-Loans) was $69 million, representing 1.00% of period-end loans, consistent with the previous year[196]. Merger and Acquisition - The company announced a merger agreement with MidWestOne Financial Group, Inc., involving an exchange of 0.3175 shares of Nicolet common stock for each share of MidWestOne common stock[130]. - The merger with MidWestOne is expected to close in the first half of 2026, pending regulatory and stockholder approvals[130]. - MidWestOne had total assets of $6.2 billion, loans of $4.4 billion, and deposits of $5.5 billion as of September 30, 2025[130]. Capital Management - Common stock repurchased during the nine months ended September 30, 2025, totaled $76,561,000, with 646,002 shares repurchased[219]. - Total risk-based capital as of September 30, 2025, was $1,069,440,000, compared to $1,062,458,000 at year-end December 31, 2024[219]. - Tier 1 risk-based capital increased to $905,262,000 as of September 30, 2025, from $882,056,000 at year-end December 31, 2024[219]. - The company has $19 million authorized under its stock repurchase program as of September 30, 2025[220]. - The Tier 1 capital ratio improved to 12.1% as of September 30, 2025, from 11.9% at year-end December 31, 2024[219]. - The total capital ratio remained stable at 14.3% for both September 30, 2025, and December 31, 2024[219]. Operational Efficiency - Noninterest expense totaled $148 million for the nine months ended September 30, 2025, an increase of $5 million (3%) from the previous year, driven by a $3 million (4%) rise in personnel costs[146]. - Personnel costs increased by $3.3 million (4%) to $85.1 million for the nine months ended September 30, 2025, reflecting merit increases and higher incentives[175]. - Noninterest income was $62 million for the nine months ended September 30, 2025, a $1 million increase from 2024, with a 7% increase in noninterest income excluding net asset gains[146]. Market Conditions - The projected change in net interest income for a 200 bps increase in interest rates is 3.9% for September 30, 2025[215]. - There have been no material changes in market risk as of September 30, 2025, compared to the previous year[222].