NICOLET BANKSHARES INC (NIC)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 delivered strong profitability with GAAP diluted EPS of $2.08 and net income of $33M; against S&P Global consensus, NIC posted a beat on EPS (Primary EPS 2.10 vs 1.96) and a sizable revenue beat ($87.93M vs $69.95M)* .
• Net interest margin eased 3 bps sequentially to 3.58% as higher average interest-bearing deposits modestly weighed on NII, while deposit cost reductions partially offset mix pressure .
• Balance sheet growth was healthy: loans +$119M QoQ (primarily C&I) and total deposits +$169M QoQ with core deposits +$62M; asset quality remained solid (NPAs 0.33% of assets; ACL/loans 1.00%) .
• Capital return accelerated: $26M of buybacks in Q1 and a $60M increase to the repurchase authorization (Apr 15); subsequent dividend raised 14% to $0.32 in May, following a $0.28 dividend declared in February .

What Went Well and What Went Wrong

• What Went Well

  • Core growth and asset quality: Loans rose $119M (2%) with C&I strength; core deposits increased $62M; NPAs held at 0.33% of assets and net charge-offs were negligible .
  • Margin resilience and efficiency: NIM of 3.58% (down 3 bps QoQ) remained robust; efficiency ratio improved YoY to 52.94% from 58.34% in Q1’24 .
  • Shareholder returns and discipline: Repurchased 233,207 shares for $26M and expanded repurchase authorization by $60M; CEO emphasized disciplined growth and prioritizing repurchases amid M&A uncertainty: “the best acquisition we can make…is in our own company through share repurchases.” .

• What Went Wrong

  • Seasonality in fees: Noninterest income fell $3M QoQ to $18.2M, driven by seasonally lower mortgage gains and softer swap fees; net asset gains were $0.9M unfavorable on equity marks .
  • Slight NIM/NI headwind: Net interest income of $71.2M edged down QoQ as average interest-bearing deposits rose $285M (+5%), pressuring funding, though deposit costs fell 7 bps .
  • Mix pressure: Average noninterest-bearing DDA balances declined sequentially, contributing to funding mix drag; period-end noninterest-bearing demand deposits fell to $1.689B from $1.791B at 12/31/24 .

Financial Results

Actuals vs prior periods and S&P Global estimates

• Actual vs Estimates (S&P Global)

Values with asterisk (*) retrieved from S&P Global.

• Income Statement (reported)

• Margins & Ratios

• Balance Sheet and Credit

• Revenue Composition (reported)

Guidance Changes

Earnings Call Themes & Trends

Note: We could not locate a publicly available Q1 2025 earnings call transcript. The company provided a press release and subsequently an investor presentation (Apr 29) but no accessible call transcript link on our sources .

Management Commentary

• “Our first quarter profitability metrics likely place us well within the top quartile of community banks… We are growing core relationships in all revenue lines… growth is occurring in a disciplined manner.” — Mike Daniels, Chairman, President & CEO .
• “While we continue to have high-level M&A conversations… it makes sense to allow the dust to settle. In the meantime… the best acquisition we can make… is in our own company through share repurchases.” — Mike Daniels .
• Margin dynamics: Yield on interest-earning assets decreased 1 bp to 5.67%, while cost of interest-bearing liabilities decreased 7 bps to 2.83% .

Q&A Highlights

We did not find a publicly available Q1 2025 earnings call transcript, so Q&A highlights and any real-time guidance clarifications are unavailable from primary sources reviewed .

Estimates Context

• EPS: S&P Global Primary EPS actual 2.10 vs consensus 1.96; beat by $0.14*.
• Revenue: S&P Global “Revenue” actual $87.93M vs consensus $69.95M; beat by $17.98M*.
• Estimate breadth: 5 EPS estimates; 4 revenue estimates in the quarter*.
  Values with asterisk (*) retrieved from S&P Global.

Key Takeaways for Investors

• Core franchise momentum: Solid loan (+$119M) and core deposit (+$62M) growth with stable credit quality provides a durable base for earnings compounding .
• Margin is holding up: NIM only -3 bps QoQ to 3.58% amid improving deposit costs; watch deposit mix (lower average NIB) and brokered usage (+$107M QoQ) for funding risk/reward .
• Fee seasonality and market marks drove QoQ fee decline; monitor mortgage pipeline normalization and equity mark volatility into 2H .
• Capital deployment favors shareholders near term: $26M Q1 buybacks, $60M authorization increase, and dividend raised to $0.32 in May signal confidence and capital flexibility .
• Valuation drivers: Sustained ROAA ~1.5% and ROATCE ~17% with efficiency ~53% remain attractive community bank metrics; continued core growth and credit stability are key to multiple support .
• Watch list: Funding mix (NIB trends), brokered reliance, and rate path sensitivity on NIM; any shift from buybacks toward M&A would be a narrative pivot per CEO’s disciplined posture .

Additional detail and data sources:

• Q1 2025 press release and Form 8-K with full financial tables .
• Q4 2024 and Q3 2024 press releases for trend context .
• Dividend announcements (Feb 25: $0.28; May 20: $0.32) .
• Company investor site hub for quarterly results .

Notes:

• Where S&P Global estimates are referenced, values are marked with an asterisk (*) and were retrieved from S&P Global.