Nicolet Bankshares (NIC) Q2 2025 earnings summary

Executive summary

• Q2 2025 net income was $36.0M, diluted EPS $2.34, with ROAA of 1.62% and ROATCE of 18.12%; six-month net income reached $68.6M, EPS $4.42.

• Loans and core deposits grew at annualized rates of 5.6% and 4.1% in Q2 2025, with commercial and industrial loans leading growth.

• Book value per share rose to $79.74, tangible book value to $53.94 at June 30, 2025.

• Asset quality remains strong with NPAs/Assets at 0.32% and net charge-offs at 0.02%.

• Capital returned to shareholders via $30M in Q2 share repurchases, $56M in H1 2025, and a 14% dividend increase.

Financial highlights

• Net interest income rose to $75.1M in Q2 and $146.3M for H1 2025, up 14% year-over-year; NIM improved to 3.72% in Q2 and 3.65% for H1.

• Noninterest income was $21M in Q2, $38.9M for H1 2025, up 8% year-over-year excluding asset gains/losses.

• Noninterest expense increased to $50M in Q2, $97.7M for H1, mainly due to higher personnel and technology costs.

• Assets at $8.93B, loans at $6.84B, deposits at $7.54B as of June 30, 2025.

• Allowance for credit losses on loans was $68M, or 1.00% of total loans.

Outlook and guidance

• NIM expected to benefit from a "higher for longer" rate environment, with over 60% of loans fixed rate.

• Deposit cost increases have subsided; future changes likely driven by mix rather than pricing.

• Management expects continued loan and deposit growth, maintaining strong asset quality and capital levels.

• 2025 capital priorities include M&A, share repurchases, and dividend review.

• Interest rate environment and economic conditions remain key variables for future net interest income and margin.