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Highlights

  • NIC’s Q2 2025 net income rose to USD 36 million from USD 33 million in Q1
  • Net interest margin expanded to 3.72%, up 14 basis points sequentially
  • USD 30 million in share repurchases during the quarter

Nicolet Bankshares, Inc. (NYSE:NIC) reported a record net income of USD 36 million for the second quarter ended June 30, 2025, up from USD 33 million in the prior quarter and USD 29 million in the same period last year. Earnings per diluted common share increased to USD 2.34, compared to USD 2.08 in Q1 2025 and USD 1.92 in Q2 2024.

Return on average assets reached 1.62 percent, the company’s highest since the March 2023 balance sheet restructuring. Net interest income was USD 75 million for the quarter, driven by higher interest-earning asset yields and a USD 94 million increase in loan balances. Net interest margin improved by 14 basis points sequentially to 3.72 percent.

Total loans grew at a 5.6 percent annualized rate, mostly in commercial lending. Deposits totaled USD 7.5 billion at quarter-end, down USD 31 million from Q1 due to a reduction in brokered deposits, offset by a USD 68 million increase in core customer deposits. Total assets declined slightly to USD 8.9 billion, largely from lower cash balances.

Noninterest income rose by USD 2 million to USD 21 million, benefiting from seasonal mortgage activity and valuation gains on deferred compensation assets. Wealth income declined slightly, while card interchange income rose USD 0.4 million.

Noninterest expenses totaled USD 50 million, increasing USD 2 million over the prior quarter. Personnel costs rose by USD 3 million due to performance incentives and higher deferred compensation liabilities. Other expense categories declined by USD 1 million, driven by reduced marketing activity.

During the quarter, Nicolet repurchased 257,402 common shares for USD 30 million. Total capital reached USD 1.2 billion, up USD 7 million from March 31, 2025. This reflected earnings and favorable portfolio valuations, partially offset by dividends and repurchases.

Nonperforming assets remained low at USD 29 million, or 0.32 percent of total assets, with the allowance for credit losses holding steady at 1.00 percent of total loans. Loan charge-offs were minimal.

Management emphasized the consistency of performance across lending, deposits, and margin expansion, crediting daily execution across its operations.