nic-20221025

Exhibit 99.1

FOR IMMEDIATE RELEASE

NICOLET BANKSHARES, INC. ANNOUNCES THIRD QUARTER 2022 EARNINGS

•Acquisition of Charter Bankshares, Inc. closed and integrated on August 26, adding approximately $1.1 billion in assets

•Net income of $19 million and adjusted net income (non-GAAP) of $25 million, compared to net income of $24 million in prior quarter and net income of $8 million or adjusted net income (non-GAAP) of $16 million in third quarter 2021, impacted by the Charter acquisition in 2022 and the Mackinac acquisition in 2021

•Net income of $67 million or adjusted net income (non-GAAP) of $71 million for first nine months of 2022, compared to net income of $44 million or adjusted net income (non-GAAP) of $49 million for first nine months of 2021

•Earnings per diluted common share of $1.29 and $4.72 for the three and nine months ended September 30

•Adjusted earnings per diluted common share (non-GAAP) of $1.74 and $5.05 for the three and nine months ended September 30

•Return on average assets of 0.93% and 1.18% for the three and nine months ended September 30

Green Bay, Wisconsin, October 25, 2022 - Nicolet Bankshares, Inc. (NYSE: NIC) (“Nicolet” or the “Company”) announced third quarter 2022 net income of $19 million and earnings per diluted common share of $1.29, compared to $24 million and $1.73 for second quarter 2022, and $8 million and $0.73 for third quarter 2021, respectively. Annualized quarterly return on average assets was 0.93%, 1.32% and 0.59%, for third quarter 2022, second quarter 2022 and third quarter 2021, respectively.

Net income for the nine months ended September 30, 2022 was $67 million and earnings per diluted common share was $4.72, compared to net income of $44 million and earnings per diluted common share of $4.22 for the first nine months of 2021. Annualized return on average assets was 1.18% and 1.24% for the first nine months of 2022 and 2021, respectively.

Net income reflected non-core items and the related tax effect of each, including merger and integration related expenses, Day 2 credit provision expense required under the CECL model, branch optimization costs, contract negotiation expenses, and gains on other assets and investments. Non-core items negatively impacted earnings per diluted common share $0.45 for third quarter 2022 and $0.76 for third quarter 2021. For the nine months ended September 30, non-core items negatively impacted diluted earnings per common share $0.33 for 2022 and $0.48 for 2021.

On August 26, 2022, Nicolet completed its acquisition of Charter Bankshares, Inc. (“Charter”). In the merger, Charter shareholders received approximately 1.26 million shares of Nicolet common stock (valued at $98 million) and cash consideration of $39 million, for a total purchase price of $137 million. Upon consummation, Charter added total assets of $1.1 billion, loans of $827 million, deposits of $869 million, and preliminary goodwill of $53 million.

“Nicolet’s penchant for taking the long view showed up in this quarter’s numbers. While we planned for and achieved successful integrations and organic growth, we didn’t plan for the opportunity to add significant and proven talent to our wealth management team. So, we were excited to add a pre-eminently successful wealth advisor in the greater Green Bay area and a team of seasoned wealth professionals in Northern Michigan,” said Mike Daniels, President and CEO of Nicolet. “Throughout Nicolet’s history, we have aggressively added established bankers and advisors when possible, looking at these actions as long-term investments rather than short-term expenses. We understand that our brand promise is delivered through our people, and the more talent we have, the better we can fulfill this promise. Therefore, finding and retaining great people is key to our success.”

“To some degree, I wish I could take you inside the room when we have strategic discussions. You would see that we work hard to balance the optimism of having a record year with the realities of the macroeconomic environment. We have found that remembering our core purpose of serving our 3 Circles (customers, shareholders, and employees) has helped us focus our discussions. As our team continues to execute our strategic priorities, as evidenced by strong core growth, we gain confidence that our investments in people will continue to deliver long-term payoffs,” Daniels added.

“Lastly, we maintain our confidence in our credit culture as our asset quality trends remain solid and net charge-offs negligible,” Daniels continued.

The Company’s financial performance and certain balance sheet line items were impacted by the timing and size of Nicolet’s 2022 and 2021 acquisitions. In addition to the 2022 Charter acquisition, during 2021 Nicolet acquired, Mackinac Financial Corporation (“Mackinac”) on September 3, 2021 and County Bancorp, Inc. (“County”) on December 3, 2021. Certain income statement results, average balances and related ratios for 2022 include partial contributions from Charter, while 2021 results include partial contributions from Mackinac and County, each from the respective acquisition date. At acquisition, Mackinac added assets of $1.5 billion, loans of $0.9 billion, and deposits of $1.4 billion, while at acquisition County added assets of $1.4 billion, loans of $1.0 billion, and deposits of $1.0 billion.

Balance Sheet Review

At September 30, 2022, period end assets were $8.9 billion, an increase of $1.5 billion (21%) from June 30, 2022, largely due to the Charter acquisition, which added $1.1 billion of assets at acquisition. Total loans increased $1.0 billion (20%) from June 30, 2022, including the Charter acquisition as well as solid organic loan growth. Excluding the $827 million of loans acquired with Charter, organic loan growth was 3.6% (or 14.2% annualized) from June 30, 2022. Total deposits of $7.4 billion at September 30, 2022, increased $1.1 billion (18%) from June 30, 2022, including the Charter acquisition as well as higher brokered deposits. Total borrowings increased $308 million from June 30, 2022, with approximately half acquired with Charter and the remainder related to new FHLB advances. Total capital was $938 million at September 30, 2022, an increase of $99 million since June 30, 2022, mostly from the common stock issued for the Charter acquisition, as well as solid earnings offset by unfavorable changes in the fair value of available for sale securities.

Asset Quality

Nonperforming assets were $40 million and represented 0.45% of total assets at September 30, 2022, compared to $42 million or 0.56% at June 30, 2022. The allowance for credit losses-loans was $60 million and represented 1.01% of total loans at September 30, 2022, compared to $51 million and 1.02% at June 30, 2022. The growth in the allowance for credit losses-loans was mostly due to the $8 million Day 2 allowance increase from the acquisition of Charter. Asset quality trends remain solid and net charge-offs are negligible.

Income Statement Review - Quarter

Net income for third quarter 2022 was $19 million, compared to net income of $24 million for second quarter 2022.

Net interest income was $63 million for third quarter 2022, up $8 million from second quarter 2022, the net of $11 million higher interest income and $3 million higher interest expense. The higher interest income was attributable to strong loan growth (both organic and acquired), new and renewed loans repricing higher from the Federal Reserve interest rate increases, and additional tax-exempt municipal securities (acquired with Charter), while the higher interest expense was due to both higher average balances and higher rates (also related to the Federal Reserve interest rate increases). Average interest-earning assets of $7.2 billion grew $581 million over second quarter 2022, mostly due to a $553 million increase in average loans from solid organic loan growth and one month of contribution from Charter. Average interest-bearing liabilities of $4.7 billion increased $305 million from second quarter 2022, including $232 million higher interest-bearing deposits and $73 million higher wholesale funding, mostly due to the timing of the Charter acquisition.

The net interest margin for third quarter 2022 was 3.48%, up 14bps from 3.34% for second quarter 2022. The yield on interest-earning assets increased 30bps (to 3.91%) reflecting both the changing mix of interest-earning assets (which shifted to 75% loans and 25% investments / other interest-earning assets for third quarter 2022, compared to 73% loans and 27% investments / other interest-earning assets for second quarter 2022) and the rising interest rate environment. The cost of funds increased 25bps (to 0.65%) for third quarter 2022, attributable mainly to the repricing of deposits and funding in the higher interest rate environment.

Noninterest income was $13.0 million for third quarter 2022, down $1.1 million (8%) compared to second quarter 2022, mostly due to lower net asset gains. Third quarter 2022 included minimal net asset gains, while second quarter 2022 included $1.6 million of net asset gains, primarily related to sales of other real estate owned (mostly closed bank branch locations). Net mortgage income of $1.7 million was down $0.5 million from second quarter 2022, as mortgage volume continues to slow amidst the rising interest rates. BOLI income increased $0.2 million over second quarter 2022, on improving rates and higher average balances. Other noninterest income improved $0.7 million between the sequential quarters mostly due to a favorable change in the fair value of nonqualified deferred compensation plan assets from less dramatic market declines.

Noninterest expense of $42.6 million increased $6.0 million (17%) from second quarter 2022. Personnel expense increased $4.5 million (23%) from second quarter 2022, including one-time personnel costs for investments in our wealth team, higher incentives from the successful Charter acquisition, the offsetting change to the nonqualified deferred compensation plan liabilities, and higher health claim experience, as well as higher salaries and fringe benefits from the larger employee base. Non-personnel expenses increased $1.6 million (9%), largely due to $0.8 million higher office expense (largely software and equipment maintenance), $0.2 million higher business development (timing of business events and community support), a $0.3 million increase in intangible amortization (related to the Charter acquisition), and a $0.3 million increase in other noninterest expense (mostly related to a $0.2 million impairment on a closed bank branch).

About Nicolet Bankshares, Inc.

Nicolet Bankshares, Inc. is the bank holding company of Nicolet National Bank, a growing, full-service, community bank providing services ranging from commercial, agricultural and consumer banking to wealth management and retirement plan services. Founded in Green Bay in 2000, Nicolet National Bank operates branches in Wisconsin, Michigan, and Minnesota. More information can be found at www.nicoletbank.com.

Use of Non-GAAP Financial Measures

This communication contains non-GAAP financial measures, such as non-GAAP adjusted net income, non-GAAP adjusted earnings per diluted common share, tangible book value per common share, return on average tangible common equity, and tangible common equity to tangible assets. Management believes such measures to be helpful to management, investors and others in understanding Nicolet’s results of operations or financial position. When non-GAAP financial measures are used, the comparable GAAP financial measures, as well as the reconciliation of the non-GAAP measures to the GAAP financial measures, are provided. See “Reconciliation of Non-GAAP Financial Measures (Unaudited)” below. The non-GAAP net income measure and related reconciliation provide information useful to investors in understanding the operating performance and trends of Nicolet and also aid investors in comparing Nicolet’s financial performance to the financial performance of peer banks. Management considers non-GAAP financial ratios to be critical metrics with which to analyze and evaluate financial condition and capital strengths. While non-GAAP financial measures are frequently used by stakeholders in the evaluation of a corporation, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of results as reported under GAAP.


Nicolet Bankshares, Inc.
Consolidated Balance Sheets (Unaudited)
(In thousands, except share data)	09/30/2022		06/30/2022		03/31/2022		12/31/2021		09/30/2021
Assets
Cash and due from banks	$	118,537	$	96,189	$	183,705	$	209,349	$	217,608
Interest-earning deposits	319,745		84,828		212,218		385,943		1,132,997
Cash and cash equivalents	438,282		181,017		395,923		595,292		1,350,605
Certificates of deposit in other banks	13,510		15,502		19,692		21,920		24,079
Securities available for sale, at fair value	949,597		813,248		852,331		921,661		715,942
Securities held to maturity, at amortized cost	686,424		695,812		684,991		651,803		49,063
Other investments	79,279		53,269		54,257		44,008		38,602
Loans held for sale	3,709		5,084		9,764		6,447		16,784
Other assets held for sale	—		—		—		199,833		177,627
Loans	5,984,437		4,978,654		4,683,315		4,621,836		3,533,198
Allowance for credit losses - loans	(60,348)		(50,655)		(49,906)		(49,672)		(38,399)
Loans, net	5,924,089		4,927,999		4,633,409		4,572,164		3,494,799
Premises and equipment, net	106,648		96,656		94,275		94,566		83,513
Bank owned life insurance ("BOLI")	165,166		136,060		135,292		134,476		100,690
Goodwill and other intangibles, net	407,117		336,721		338,068		339,492		269,954
Accrued interest receivable and other assets	122,095		108,884		102,210		113,375		86,162
Total assets	$	8,895,916	$	7,370,252	$	7,320,212	$	7,695,037	$	6,407,820

Liabilities and Stockholders' Equity
Liabilities:
Noninterest-bearing demand deposits	$	2,477,507	$	2,045,732	$	1,912,995	$	1,975,705	$	1,852,119
Interest-bearing deposits	4,918,395		4,240,534		4,318,125		4,490,211		3,576,655
Total deposits	7,395,902		6,286,266		6,231,120		6,465,916		5,428,774
Short-term borrowings	280,000		—		—		—		—
Long-term borrowings	225,236		196,963		206,946		216,915		144,233
Other liabilities held for sale	—		—		—		51,586		47,496
Accrued interest payable and other liabilities	56,315		47,636		45,836		68,729		58,039
Total liabilities	7,957,453		6,530,865		6,483,902		6,803,146		5,678,542
Stockholders' Equity:
Common stock	147		134		135		140		120
Additional paid-in capital	620,392		520,741		524,478		575,045		425,367
Retained earnings	380,263		361,753		337,768		313,604		297,299
Accumulated other comprehensive income (loss)	(62,339)		(43,241)		(26,071)		3,102		6,492
Total Nicolet stockholders' equity	938,463		839,387		836,310		891,891		729,278
Total liabilities and stockholders' equity	$	8,895,916	$	7,370,252	$	7,320,212	$	7,695,037	$	6,407,820

Common shares outstanding	14,673,197		13,407,375		13,456,741		13,994,079		11,952,438


Nicolet Bankshares, Inc.
Consolidated Statements of Income (Unaudited)
	For the Three Months Ended										For the Nine Months Ended
(In thousands, except per share data)	09/30/2022		06/30/2022		03/31/2022		12/31/2021		09/30/2021		9/30/2022		9/30/2021
Interest income:
Loans, including loan fees	$	63,060	$	52,954	$	51,299	$	52,292	$	35,294	$	167,313	$	104,267
Taxable investment securities	5,350		5,135		5,127		3,999		2,061		15,612		5,935
Tax-exempt investment securities	1,181		647		675		575		517		2,503		1,582
Other interest income	1,127		790		817		769		869		2,734		2,140
Total interest income	70,718		59,526		57,918		57,635		38,741		188,162		113,924
Interest expense:
Deposits	4,638		2,410		2,192		2,649		2,444		9,240		7,799
Short-term borrowings	594		28		—		1		—		622		—
Long-term borrowings	2,496		2,004		1,931		1,426		1,113		6,431		1,729
Total interest expense	7,728		4,442		4,123		4,076		3,557		16,293		9,528
Net interest income	62,990		55,084		53,795		53,559		35,184		171,869		104,396
Provision for credit losses	8,600		750		300		8,400		6,000		9,650		6,500
Net interest income after provision for credit losses	54,390		54,334		53,495		45,159		29,184		162,219		97,896
Noninterest income:
Trust services fee income	1,969		2,004		2,011		2,050		2,043		5,984		5,724
Brokerage fee income	3,040		2,988		3,688		3,205		3,154		9,716		8,938
Mortgage income, net	1,728		2,205		3,253		4,518		4,808		7,186		17,637
Service charges on deposit accounts	1,589		1,536		1,477		1,482		1,314		4,602		3,541
Card interchange income	3,012		2,950		2,581		2,671		2,299		8,543		6,492
BOLI income	966		768		933		722		572		2,667		1,658
Asset gains (losses), net	(46)		1,603		1,313		465		(1,187)		2,870		3,716
Other noninterest income	742		77		687		951		993		1,506		3,594
Total noninterest income	13,000		14,131		15,943		16,064		13,996		43,074		51,300
Noninterest expense:
Personnel expense	24,136		19,681		21,191		21,491		16,927		65,008		49,127
Occupancy, equipment and office	7,641		6,891		6,944		7,119		5,749		21,476		13,939
Business development and marketing	2,281		2,057		1,831		1,550		1,654		6,169		3,853
Data processing	3,664		3,596		3,387		3,582		2,939		10,647		8,408
Intangibles amortization	1,628		1,347		1,424		1,094		758		4,399		2,400
FDIC assessments	480		480		480		480		480		1,440		1,555
Merger-related expense	519		555		98		2,202		2,793		1,172		3,449
Other noninterest expense	2,218		1,931		2,195		1,890		1,761		6,344		7,158
Total noninterest expense	42,567		36,538		37,550		39,408		33,061		116,655		89,889
Income before income tax expense	24,823		31,927		31,888		21,815		10,119		88,638		59,307
Income tax expense	6,313		7,942		7,724		5,510		2,295		21,979		14,960
Net income	$	18,510	$	23,985	$	24,164	$	16,305	$	7,824	$	66,659	$	44,347
Earnings per common share:
Basic	$	1.33	$	1.79	$	1.77	$	1.29	$	0.75	$	4.88	$	4.39
Diluted	$	1.29	$	1.73	$	1.70	$	1.25	$	0.73	$	4.72	$	4.22
Common shares outstanding:
Basic weighted average	13,890		13,402		13,649		12,626		10,392		13,648		10,098
Diluted weighted average	14,310		13,852		14,215		13,049		10,776		14,127		10,503


Nicolet Bankshares, Inc.
Consolidated Financial Summary (Unaudited)
	For the Three Months Ended															For the Nine Months Ended
(In thousands, except share & per share data)	09/30/2022			6/30/2022			3/31/2022			12/31/2021			9/30/2021			9/30/2022			9/30/2021
Selected Average Balances:
Loans	$	5,391,258		$	4,838,535		$	4,688,784		$	3,952,330		$	3,076,422		$	4,975,432		$	2,924,648
Investment securities	1,625,453			1,573,027			1,575,624			1,269,562			611,870			1,591,551			559,588
Interest-earning assets	7,161,120			6,579,644			6,711,191			5,923,581			4,734,768			6,818,966			4,313,618
Cash and cash equivalents	167,550			217,553			568,472			839,607			1,100,153			316,381			856,983
Goodwill and other intangibles, net	363,211			337,289			338,694			294,051			201,748			346,488			183,632
Total assets	7,856,131			7,273,219			7,519,636			6,772,363			5,246,193			7,550,894			4,765,665
Deposits	6,643,247			6,188,044			6,392,544			5,754,778			4,448,468			6,408,863			4,075,923
Interest-bearing liabilities	4,730,209			4,425,450			4,683,915			4,006,307			3,093,031			4,613,360			2,848,583
Stockholders’ equity (common)	890,205			837,975			861,319			784,666			608,946			863,272			568,390
Selected Ratios: (1)
Book value per common share	$	63.96		$	62.61		$	62.15		$	63.73		$	61.01		$	63.96		$	61.01
Tangible book value per common share (2)	$	36.21		$	37.49		$	37.03		$	39.47		$	38.43		$	36.21		$	38.43
Return on average assets	0.93		%	1.32		%	1.30		%	0.96		%	0.59		%	1.18		%	1.24		%
Return on average common equity	8.25			11.48			11.38			8.24			5.10			10.32			10.43
Return on average tangible common equity (2)	13.93			19.21			18.75			13.19			7.62			17.25			15.41
Average equity to average assets	11.33			11.52			11.45			11.59			11.61			11.43			11.93
Stockholders’ equity to assets	10.55			11.39			11.42			11.59			11.38			10.55			11.38
Tangible common equity to tangible assets (2)	6.26			7.15			7.14			7.51			7.48			6.26			7.48
Net interest margin	3.48			3.34			3.23			3.57			2.94			3.36			3.22
Efficiency ratio	55.62			53.74			54.56			56.73			65.32			54.68			58.86
Effective tax rate	25.43			24.88			24.22			25.26			22.68			24.80			25.22
Selected Asset Quality Information:
Nonaccrual loans	$	38,326		$	36,580		$	39,670		$	44,154		$	16,715		$	38,326		$	16,715
Other real estate owned - closed branches	1,506			4,378			9,019			10,307			2,895			1,506			2,895
Other real estate owned	628			628			797			1,648			1,574			628			1,574
Nonperforming assets	$	40,460		$	41,586		$	49,486		$	56,109		$	21,184		$	40,460		$	21,184
Net loan charge-offs (recoveries)	$	216		$	(149)		$	66		$	(10)		$	58		$	133		$	170
Allowance for credit losses-loans to loans	1.01		%	1.02		%	1.07		%	1.07		%	1.09		%	1.01		%	1.09		%
Net loan charge-offs to average loans (1)	0.02			(0.01)			0.01			0.00			0.01			0.00			0.01
Nonperforming loans to total loans	0.64			0.73			0.85			0.96			0.47			0.64			0.47
Nonperforming assets to total assets	0.45			0.56			0.68			0.73			0.33			0.45			0.33
Stock Repurchase Information:
Common stock repurchased (dollars) (3)	$	—		$	6,277		$	54,420		$	27,784		$	17,125		$	60,697		$	33,680
Common stock repurchased (full shares) (3)	—			67,949			593,713			345,166			233,594			661,662			447,898

(1)Income statement-related ratios for partial-year periods are annualized.

(2)See Reconciliation of Non-GAAP Financial Measures below for a reconciliation of these financial measures.

(3)Reflects common stock repurchased under board of director authorizations for the common stock repurchase program.


Nicolet Bankshares, Inc.
Net Interest Income and Net Interest Margin Analysis (Unaudited)

	For the Three Months Ended
	September 30, 2022						June 30, 2022						September 30, 2021
	Average				Average		Average				Average		Average				Average
(In thousands)	Balance		Interest		Rate		Balance		Interest		Rate		Balance		Interest		Rate
ASSETS
PPP loans	$	605	$	1	0.93	%	$	5,333	$	13	0.93	%	$	109,318	$	2,310	8.27	%
All other loans	5,390,653		63,094		4.60	%	4,833,202		52,971		4.34	%	2,967,104		33,001		4.37	%
Total loans (1) (2)	5,391,258		63,095		4.60	%	4,838,535		52,984		4.34	%	3,076,422		35,311		4.51	%
Investment securities (2)	1,625,453		6,989		1.72	%	1,573,027		6,126		1.56	%	611,870		2,805		1.83	%
Other interest-earning assets	144,409		1,127		3.09	%	168,082		790		1.87	%	1,046,476		869		0.33	%
Total interest-earning assets	7,161,120		$	71,211	3.91	%	6,579,644		$	59,900	3.61	%	4,734,768		$	38,985	3.24	%
Other assets, net	695,011						693,575						511,425
Total assets	$	7,856,131					$	7,273,219					$	5,246,193
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing core deposits	$	3,974,448	$	3,353	0.33	%	$	3,787,103	$	1,857	0.20	%	$	2,665,252	$	1,550	0.23	%
Brokered deposits	468,010		1,285		1.09	%	423,372		553		0.52	%	284,164		894		1.25	%
Total interest-bearing deposits	4,442,458		4,638		0.41	%	4,210,475		2,410		0.23	%	2,949,416		2,444		0.33	%
Wholesale funding	287,751		3,089		4.25	%	214,975		2,032		3.77	%	143,615		1,113		3.08	%
Total interest-bearing liabilities	4,730,209		$	7,727	0.65	%	4,425,450		$	4,442	0.40	%	3,093,031		$	3,557	0.46	%
Noninterest-bearing demand deposits	2,200,789						1,977,569						1,499,052
Other liabilities	34,928						32,225						45,164
Stockholders' equity	890,205						837,975						608,946
Total liabilities and stockholders' equity	$	7,856,131					$	7,273,219					$	5,246,193
Net interest income and rate spread			$	63,484	3.26	%			$	55,458	3.21	%			$	35,428	2.78	%
Net interest margin					3.48	%					3.34	%					2.94	%
Loan purchase accounting accretion (3)			$	1,075	0.05	%			$	987	0.06	%			$	406	0.03	%

	For the Nine Months Ended
	September 30, 2022						September 30, 2021
	Average				Average		Average				Average
(In thousands)	Balance		Interest		Rate		Balance		Interest		Rate
ASSETS
PPP loans	$	6,433	$	1,391	28.51	%	$	173,463	$	11,123	8.46	%
All other loans	4,968,999		166,022		4.41	%	2,751,185		93,202		4.48	%
Total loans (1) (2)	4,975,432		167,413		4.45	%	2,924,648		104,325		4.71	%
Investment securities (2)	1,591,551		19,273		1.62	%	559,588		8,187		1.95	%
Other interest-earning assets	251,983		2,734		1.44	%	829,382		2,140		0.34	%
Total interest-earning assets	6,818,966		$	189,420	3.67	%	4,313,618		$	114,652	3.51	%
Other assets, net	731,928						452,047
Total assets	$	7,550,894					$	4,765,665
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing core deposits	$	3,923,687	$	6,846	0.23	%	$	2,483,963	$	4,914	0.26	%
Brokered deposits	450,311		2,394		0.71	%	284,738		2,885		1.35	%
Total interest-bearing deposits	4,373,998		9,240		0.28	%	2,768,701		7,799		0.38	%
Wholesale funding	239,362		7,053		3.91	%	79,882		1,729		2.87	%
Total interest-bearing liabilities	4,613,360		$	16,293	0.47	%	2,848,583		$	9,528	0.45	%
Noninterest-bearing demand deposits	2,034,865						1,307,222
Other liabilities	39,397						41,470
Stockholders' equity	863,272						568,390
Total liabilities and stockholders' equity	$	7,550,894					$	4,765,665
Net interest income and rate spread			$	173,127	3.20	%			$	105,124	3.06	%
Net interest margin					3.36	%					3.22	%
Loan purchase accounting accretion (3)			$	2,636	0.06	%			$	1,598	0.05	%

(1) Nonaccrual loans and loans held for sale are included in the daily average loan balances outstanding.

(2) The yield on tax-exempt loans and tax-exempt investment securities is computed on a tax-equivalent basis using a federal tax rate of 21%, and adjusted for the disallowance of interest expense.

(3) Loan purchase accounting accretion included in All other loans above, and the related impact to net interest margin..


Nicolet Bankshares, Inc.
Reconciliation of Non-GAAP Financial Measures (Unaudited)
	At or for the Three Months Ended										At or for the Nine Months Ended
(In thousands, except per share data)	09/30/2022		6/30/2022		3/31/2022		12/31/2021		9/30/2021		9/30/2022		9/30/2021
Adjusted net income reconciliation: (1)
Net income (GAAP)	$	18,510	$	23,985	$	24,164	$	16,305	$	7,824	$	66,659	$	44,347
Adjustments:
Provision expense related to merger	8,000		—		—		8,400		6,000		8,000		6,000
Assets (gains) losses, net	46		(1,603)		(1,313)		(465)		1,187		(2,870)		(3,716)
Merger-related expense	519		555		98		2,202		2,793		1,172		3,449
Branch closure expense	—		—		—		—		944		—		944
Adjustments subtotal	8,565		(1,048)		(1,215)		10,137		10,924		6,302		6,677
Tax on Adjustments (25%)	2,141		(262)		(304)		2,534		2,731		1,576		1,669
Adjustments, net of tax	6,424		(786)		(911)		7,603		8,193		4,727		5,008
Adjusted net income (Non-GAAP)	$	24,934	$	23,199	$	23,253	$	23,908	$	16,017	$	71,386	$	49,355
Common shares outstanding:
Weighted average diluted common shares	14,310		13,852		14,215		13,049		10,776		14,127		10,503
Diluted earnings per common share:
Diluted earnings per common share (GAAP)	$	1.29	$	1.73	$	1.70	$	1.25	$	0.73	$	4.72	$	4.22
Adjusted Diluted earnings per common share (Non-GAAP)	$	1.74	$	1.67	$	1.64	$	1.83	$	1.49	$	5.05	$	4.70
Tangible assets: (2)
Total assets	$	8,895,916	$	7,370,252	$	7,320,212	$	7,695,037	$	6,407,820
Goodwill and other intangibles, net	407,117		336,721		338,068		339,492		269,954
Tangible assets	$	8,488,799	$	7,033,531	$	6,982,144	$	7,355,545	$	6,137,866
Tangible common equity: (2)
Stockholders’ equity	$	938,463	$	839,387	$	836,310	$	891,891	$	729,278
Goodwill and other intangibles, net	407,117		336,721		338,068		339,492		269,954
Tangible common equity	$	531,346	$	502,666	$	498,242	$	552,399	$	459,324
Tangible average common equity: (2)
Average stockholders’ equity (common)	$	890,205	$	837,975	$	861,319	$	784,666	$	608,946	$	863,272	$	568,390
Average goodwill and other intangibles, net	363,211		337,289		338,694		294,051		201,748		346,488		183,632
Average tangible common equity	$	526,994	$	500,686	$	522,625	$	490,615	$	407,198	$	516,784	$	384,758

Note: Numbers may not sum due to rounding.

(1)The adjusted net income measure and related reconciliation provide information useful to investors in understanding the operating performance and trends of Nicolet and also to aid investors in the comparison of Nicolet’s financial performance to the financial performance of peer banks.

(2)The ratios of tangible book value per common share, return on average tangible common equity, and tangible common equity to tangible assets exclude goodwill and other intangibles, net. These financial ratios have been included as they are considered to be critical metrics with which to analyze and evaluate financial condition and capital strength.


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.01 per share	NIC	New York Stock Exchange


Exhibit No.						Description of Exhibit
99.1						Press Release, dated October 25, 2022
104						Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document


			☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


			☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


			☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


Item 2.02			Results of Operations and Financial Condition.


Item 9.01			Financial Statements and Exhibits.