Nicolet Bankshares, Inc. Announces Record Quarterly Net Income for Second Quarter 2025

Nicolet Bankshares, Inc. Announces Record Quarterly Net Income for Second Quarter 2025 July 15, 2025 Record quarterly net income of $36 million for second quarter 2025, compared to net income of $33 million in prior quarter, and net income of $29 million for second quarter 2024 Quarterly return on average assets of 1.62%, the highest level since the March 2023 balance sheet restructuring Quarterly net interest margin of 3.72%, an increase of 14 bps over the first quarter Solid quarter-over-quarter loan growth of $94 million (5.6% annualized) and core deposit growth of $68 million (4.1% annualized) Repurchased 257,402 common shares for $30 million during second quarter 2025 Nicolet Bankshares, Inc. (NYSE: NIC) (“Nicolet”) announced record quarterly net income of $36 million for second quarter 2025 and earnings per diluted common share of $2.34, compared to net income of $33 million and earnings per diluted common share of $2.08 for first quarter 2025, and net income of $29 million and earnings per diluted common share of $1.92 for second quarter 2024. “Our quarterly results again demonstrated strong performance and continued consistency in a volatile market,” said Mike Daniels, Chairman, President, and CEO of Nicolet. “What we saw in the second quarter is a testament to the tenacity and vibrancy of our customers and the markets we serve. Loan growth continued at a healthy pace, as did core deposits. Mortgage revenues also saw their seasonal growth return, driven by housing demand in the upper Midwest. Our net interest margin continued to grow at a healthy pace as rates remained stable, and our profitability metrics are likely to place us near the top decile of community banks. Overall, it was a very solid quarter for us.” “These results aren’t happening because of one or two big things, but rather a thousand little things done by nearly a thousand people who show up each day and matter to their customers and communities,” Daniels continued. “I am impressed but not surprised by our mid-year results. Our people truly embrace the challenge of finding a way to make a meaningful impact. We remain focused at all levels of Nicolet to keep this momentum going and continue to create shared success for our customers, communities, shareholders, and each other.” Balance Sheet Review At June 30, 2025, period end assets were $8.9 billion, a decrease of $44 million from March 31, 2025, mostly from lower cash balances. Total loans increased $94 million from March 31, 2025 (mostly in commercial-based loans), while total deposits of $7.5 billion at June 30, 2025, decreased $31 million from March 31, 2025, including a $99 million decrease in brokered deposits partly offset by a $68 million increase in customer (core) deposits. Long-term borrowings decreased $22 million from the prior quarter due to the redemption of a subordinated note issuance. Total capital was $1.2 billion at June 30, 2025, an increase of $7 million over March 31, 2025, with solid earnings and favorable movements in the securities portfolio market valuation partly offset by common stock repurchases and the quarterly common stock dividend. Asset Quality Nonperforming assets were $29 million and represented 0.32% of total assets at June 30, 2025, down slightly from 0.33% of total assets at March 31, 2025 and 0.34% of total assets at June 30, 2024. The allowance for credit losses-loans was $68 million and represented 1.00% of total loans at June 30, 2025, compared to $67 million (or 1.00% of total loans) at March 31, 2025, and $65 million (or 1.00% of total loans) at June 30, 2024. Asset quality trends remain solid and loan net charge-offs were negligible. Income Statement Review - Quarter Net income was $36 million for second quarter 2025, compared to net income of $33 million for first quarter 2025. Net interest income was $75 million for second quarter 2025, $4 million higher than first quarter 2025, primarily due to solid loan growth. Interest income increased $5 million between the sequential quarters, while interest expense increased $1 million. The net interest margin for second quarter 2025 was 3.72%, up 14 bps from 3.58% for first quarter 2025. The yield on interest-earning assets increased 15 bps (to 5.82%), while the cost of interest-bearing liabilities for second quarter 2025 increased 3 bps (to 2.86%). Noninterest income of $21 million for second quarter 2025 increased $2 million from first quarter 2025, mostly due to seasonal improvements in net mortgage income and favorable market valuations on the nonqualified deferred compensation plan assets. Wealth income decreased $0.2 million, while card interchange income increased $0.4 million. Noninterest expense of $50 million for second quarter 2025 increased $2 million from first quarter 2025. Personnel expense increased $3 million from higher incentives (commensurate with solid quarterly earnings) and higher market valuations on the nonqualified deferred compensation plan liabilities, while non-personnel related expenses combined decreased $1 million (mostly lower marketing). 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 primarily 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 and 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 company, 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) 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 Assets Cash and due from banks $ 129,607 $ 105,085 $ 115,943 $ 124,076 $ 109,674 Interest-earning deposits 293,031 467,095 420,104 303,908 298,856 Cash and cash equivalents 422,638 572,180 536,047 427,984 408,530 Securities available for sale, at fair value 849,253 838,105 806,415 825,907 799,937 Other investments 59,594 58,627 62,125 63,632 64,720 Loans held for sale 9,955 8,092 7,637 11,121 9,450 Loans 6,839,141 6,745,598 6,626,584 6,556,840 6,529,134 Allowance for credit losses - loans (68,408 ) (67,480 ) (66,322 ) (65,785 ) (65,414 ) Loans, net 6,770,733 6,678,118 6,560,262 6,491,055 6,463,720 Premises and equipment, net 123,723 125,274 126,979 123,585 120,988 Bank owned life insurance (“BOLI”) 189,342 187,902 186,448 185,011 171,972 Goodwill and other intangibles, net 385,107 386,588 388,140 389,727 391,421 Accrued interest receivable and other assets 120,464 120,336 122,742 119,096 126,279 Total assets $ 8,930,809 $ 8,975,222 $ 8,796,795 $ 8,637,118 $ 8,557,017 Liabilities and Stockholders' Equity Liabilities: Noninterest-bearing demand deposits $ 1,800,335 $ 1,689,129 $ 1,791,228 $ 1,839,617 $ 1,764,806 Interest-bearing deposits 5,741,338 5,883,061 5,612,456 5,420,380 5,476,272 Total deposits 7,541,673 7,572,190 7,403,684 7,259,997 7,241,078 Long-term borrowings 134,340 156,563 161,387 161,210 162,433 Accrued interest payable and other liabilities 64,698 63,201 58,826 66,584 62,093 Total liabilities 7,740,711 7,791,954 7,623,897 7,487,791 7,465,604 Stockholders' Equity: Common stock 149 152 154 151 150 Additional paid-in capital 601,625 630,340 655,540 647,934 639,159 Retained earnings 625,243 594,068 565,772 535,638 507,366 Accumulated other comprehensive income (loss) (36,919 ) (41,292 ) (48,568 ) (34,396 ) (55,262 ) Total stockholders' equity 1,190,098 1,183,268 1,172,898 1,149,327 1,091,413 Total liabilities and stockholders' equity $ 8,930,809 $ 8,975,222 $ 8,796,795 $ 8,637,118 $ 8,557,017 Common shares outstanding 14,924,086 15,149,341 15,356,785 15,104,381 14,945,598 Nicolet Bankshares, Inc. Consolidated Statements of Income (Unaudited) For the Three Months Ended For the Six Months Ended (In thousands, except per share data) 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 6/30/2025 6/30/2024 Interest income: Loans, including loan fees $ 105,976 $ 100,666 $ 100,605 $ 100,824 $ 97,975 $ 206,642 $ 191,623 Taxable investment securities 6,027 5,560 5,369 5,211 5,056 11,587 9,613 Tax-exempt investment securities 1,017 1,049 1,073 1,095 1,152 2,066 2,390 Other interest income 4,618 5,466 5,787 5,492 4,695 10,084 9,283 Total interest income 117,638 112,741 112,834 112,622 108,878 230,379 212,909 Interest expense: Deposits 40,472 39,465 39,138 42,060 41,386 79,937 80,376 Short-term borrowings — — — 2 — — — Long-term borrowings 2,057 2,070 2,146 2,194 2,150 4,127 4,384 Total interest expense 42,529 41,535 41,284 44,256 43,536 84,064 84,760 Net interest income 75,109 71,206 71,550 68,366 65,342 146,315 128,149 Provision for credit losses 1,050 1,500 1,000 750 1,350 2,550 2,100 Net interest income after provision for credit losses 74,059 69,706 70,550 67,616 63,992 143,765 126,049 Noninterest income: Wealth management fee income 6,811 6,975 7,208 7,085 6,674 13,786 13,159 Mortgage income, net 2,907 1,926 3,326 2,853 2,634 4,833 3,998 Service charges on deposit accounts 1,962 2,025 1,877 1,913 1,813 3,987 3,394 Card interchange income 3,699 3,337 3,541 3,564 3,458 7,036 6,556 BOLI income 1,429 1,420 1,421 1,455 1,225 2,849 2,572 Asset gains (losses), net (199 ) (354 ) 510 1,177 616 (553 ) 2,525 Deferred compensation plan asset market valuations 1,437 45 (192 ) 1,162 169 1,482 228 LSR income, net 950 1,057 1,064 1,090 1,117 2,007 2,251 Other noninterest income 1,637 1,792 2,103 2,079 1,903 3,429 4,348 Total noninterest income 20,633 18,223 20,858 22,378 19,609 38,856 39,031 Noninterest expense: Personnel expense 29,114 26,521 26,682 28,937 26,285 55,635 52,795 Occupancy, equipment and office 9,104 9,330 8,685 8,826 8,681 18,434 17,625 Business development and marketing 1,593 2,100 2,325 1,823 2,040 3,693 4,182 Data processing 4,682 4,525 4,668 4,535 4,281 9,207 8,551 Intangibles amortization 1,481 1,552 1,587 1,694 1,762 3,033 3,595 FDIC assessments 1,029 940 990 990 990 1,969 2,023 Other noninterest expense 2,916 2,819 3,268 2,343 2,814 5,735 5,229 Total noninterest expense 49,919 47,787 48,205 49,148 46,853 97,706 94,000 Income before income tax expense 44,773 40,142 43,203 40,846 36,748 84,915 71,080 Income tax expense 8,738 7,550 8,723 8,330 7,475 16,288 14,017 Net income $ 36,035 $ 32,592 $ 34,480 $ 32,516 $ 29,273 $ 68,627 $ 57,063 Earnings per common share: Basic $ 2.40 $ 2.14 $ 2.25 $ 2.16 $ 1.96 $ 4.53 $ 3.82 Diluted $ 2.34 $ 2.08 $ 2.19 $ 2.10 $ 1.92 $ 4.42 $ 3.74 Common shares outstanding: Basic weighted average 15,029 15,256 15,297 15,052 14,937 15,142 14,922 Diluted weighted average 15,431 15,647 15,710 15,479 15,276 15,538 15,263 Nicolet Bankshares, Inc. Consolidated Financial Summary (Unaudited) For the Three Months Ended For the Six Months Ended (In thousands, except share & per share data) 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 6/30/2025 6/30/2024 Selected Average Balances: Loans $ 6,833,236 $ 6,710,206 $ 6,581,059 $ 6,542,532 $ 6,496,732 $ 6,772,060 $ 6,447,785 Investment securities 900,469 886,010 884,376 873,212 881,190 893,280 882,982 Interest-earning assets 8,140,178 8,078,997 7,946,309 7,824,773 7,733,097 8,109,756 7,681,109 Cash and cash equivalents 423,272 497,865 493,237 431,632 374,176 460,363 369,276 Goodwill and other intangibles, net 385,735 387,260 388,824 390,453 392,171 386,494 393,066 Total assets 8,909,653 8,849,412 8,716,611 8,596,812 8,481,186 8,879,698 8,430,891 Deposits 7,504,224 7,446,107 7,314,632 7,247,321 7,183,777 7,475,325 7,148,373 Interest-bearing liabilities 5,972,117 5,953,083 5,667,803 5,653,259 5,658,642 5,962,651 5,584,262 Stockholders’ equity (common) 1,183,316 1,178,868 1,163,477 1,118,242 1,070,379 1,181,104 1,059,487 Selected Ratios:(1) Book value per common share $ 79.74 $ 78.11 $ 76.38 $ 76.09 $ 73.03 $ 79.74 $ 73.03 Tangible book value per common share (2) $ 53.94 $ 52.59 $ 51.10 $ 50.29 $ 46.84 $ 53.94 $ 46.84 Return on average assets 1.62 % 1.49 % 1.57 % 1.50 % 1.39 % 1.56 % 1.36 % Return on average common equity 12.21 11.21 11.79 11.57 11.00 11.72 10.83 Return on average tangible common equity(2) 18.12 16.70 17.71 17.77 17.36 17.42 17.22 Average equity to average assets 13.28 13.32 13.35 13.01 12.62 13.30 12.57 Stockholders’ equity to assets 13.33 13.18 13.33 13.31 12.75 13.33 12.75 Tangible common equity to tangible assets (2) 9.42 9.28 9.33 9.21 8.57 9.42 8.57 Net interest margin * 3.72 3.58 3.61 3.51 3.42 3.65 3.37 Efficiency ratio 51.79 52.94 52.17 54.57 55.24 52.34 56.75 Effective tax rate 19.52 18.81 20.19 20.39 20.34 19.18 19.72 Selected Asset Quality Information: Nonaccrual loans $ 27,735 $ 28,325 $ 28,419 $ 25,565 $ 27,838 $ 27,735 $ 27,838 Other real estate owned 881 946 693 859 1,147 881 1,147 Nonperforming assets $ 28,616 $ 29,271 $ 29,112 $ 26,424 $ 28,985 $ 28,616 $ 28,985 Net loan charge-offs (recoveries) $ 372 $ 342 $ 363 $ 379 $ 283 $ 714 $ 296 Allowance for credit losses-loans to loans 1.00 % 1.00 % 1.00 % 1.00 % 1.00 % 1.00 % 1.00 % Net charge-offs to average loans(1) 0.02 0.02 0.02 0.02 0.02 0.02 0.01 Nonperforming loans to total loans 0.41 0.42 0.43 0.39 0.43 0.41 0.43 Nonperforming assets to total assets 0.32 0.33 0.33 0.31 0.34 0.32 0.34 Stock Repurchase Information:(3) Common stock repurchased ($) $ 29,989 $ 26,047 $ 10,137 $ — $ — $ 56,036 $ — Common stock repurchased (shares) 257,402 233,207 92,440 — — 490,609 — * During fourth quarter 2024, Nicolet changed the annualization methodology utilized for the calculation of selected net interest margin components from actual/360 to actual/actual to be more consistent with the methodology typically used by peer banks and to cause quarterly results to be more consistent with annual results. Prior periods have been restated for this change in methodology. There was no change to the reported average balances or interest recognized. (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. Consolidated Loan & Deposit Metrics (Unaudited) (In thousands) 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 Period End Loan Composition Commercial & industrial $ 1,412,621 $ 1,409,320 $ 1,319,763 $ 1,351,516 $ 1,358,152 Owner-occupied commercial real estate (“CRE”) 963,278 949,107 940,367 920,533 941,137 Agricultural 1,346,924 1,329,807 1,322,038 1,261,152 1,224,885 Commercial 3,722,823 3,688,234 3,582,168 3,533,201 3,524,174 CRE investment 1,231,423 1,225,490 1,221,826 1,226,982 1,198,020 Construction & land development 298,122 273,007 239,694 231,694 247,565 Commercial real estate 1,529,545 1,498,497 1,461,520 1,458,676 1,445,585 Commercial-based loans 5,252,368 5,186,731 5,043,688 4,991,877 4,969,759 Residential construction 88,152 91,321 96,110 85,811 90,904 Residential first mortgage 1,205,841 1,194,116 1,196,158 1,194,574 1,190,790 Residential junior mortgage 249,406 235,096 234,634 223,456 218,512 Residential real estate 1,543,399 1,520,533 1,526,902 1,503,841 1,500,206 Retail & other 43,374 38,334 55,994 61,122 59,169 Retail-based loans 1,586,773 1,558,867 1,582,896 1,564,963 1,559,375 Total loans $ 6,839,141 $ 6,745,598 $ 6,626,584 $ 6,556,840 $ 6,529,134 Period End Deposit Composition Noninterest-bearing demand $ 1,800,335 $ 1,689,129 $ 1,791,228 $ 1,839,617 $ 1,764,806 Interest-bearing demand 1,266,507 1,239,075 1,168,560 1,035,593 1,093,621 Money market 1,900,639 1,988,648 1,942,367 1,928,977 1,963,559 Savings 805,300 794,223 774,707 763,024 762,529 Time 1,768,892 1,861,115 1,726,822 1,692,786 1,656,563 Total deposits $ 7,541,673 $ 7,572,190 $ 7,403,684 $ 7,259,997 $ 7,241,078 Brokered transaction accounts $ 307,527 $ 249,537 $ 163,580 $ 159,547 $ 250,109 Brokered time deposits 450,948 607,725 586,852 549,907 557,657 Total brokered deposits $ 758,475 $ 857,262 $ 750,432 $ 709,454 $ 807,766 Customer transaction accounts $ 5,465,254 $ 5,461,538 $ 5,513,282 $ 5,407,664 $ 5,334,406 Customer time deposits 1,317,944 1,253,390 1,139,970 1,142,879 1,098,906 Total customer deposits (core) $ 6,783,198 $ 6,714,928 $ 6,653,252 $ 6,550,543 $ 6,433,312 Nicolet Bankshares, Inc. Net Interest Income and Net Interest Margin Analysis (Unaudited) For the Three Months Ended June 30, 2025 March 31, 2025 June 30, 2024 Average Average Average Average Average Average (In thousands) Balance Interest Rate * Balance Interest Rate * Balance Interest Rate * ASSETS Total loans(1) (2) $ 6,833,236 $ 106,103 6.23 % $ 6,710,206 $ 100,804 6.08 % $ 6,496,732 $ 98,086 6.07 % Investment securities(2) 900,469 7,371 3.27 % 886,010 6,951 3.14 % 881,190 6,579 2.99 % Other interest-earning assets 406,473 4,618 4.56 % 482,781 5,466 4.58 % 355,175 4,695 5.31 % Total interest-earning assets 8,140,178 $ 118,092 5.82 % 8,078,997 $ 113,221 5.67 % 7,733,097 $ 109,360 5.68 % Other assets, net 769,475 770,415 748,089 Total assets $ 8,909,653 $ 8,849,412 $ 8,481,186 LIABILITIES AND STOCKHOLDERS' EQUITY Interest-bearing core deposits $ 5,001,714 $ 31,677 2.54 % $ 5,001,535 $ 30,783 2.50 % $ 4,665,195 $ 31,713 2.73 % Brokered deposits 814,789 8,795 4.33 % 790,460 8,682 4.45 % 831,100 9,673 4.68 % Total interest-bearing deposits 5,816,503 40,472 2.79 % 5,791,995 39,465 2.76 % 5,496,295 41,386 3.03 % Wholesale funding 155,614 2,057 5.30 % 161,088 2,070 5.21 % 162,347 2,150 5.33 % Total interest-bearing liabilities 5,972,117 $ 42,529 2.86 % 5,953,083 $ 41,535 2.83 % 5,658,642 $ 43,536 3.09 % Noninterest-bearing demand deposits 1,687,721 1,654,112 1,687,482 Other liabilities 66,499 63,349 64,683 Stockholders' equity 1,183,316 1,178,868 1,070,379 Total liabilities and stockholders' equity $ 8,909,653 $ 8,849,412 $ 8,481,186 Net interest income and rate spread $ 75,563 2.96 % $ 71,686 2.84 % $ 65,824 2.59 % Net interest margin 3.72 % 3.58 % 3.42 % Loan purchase accounting accretion (3) $ 1,475 0.09 % $ 1,475 0.09 % $ 1,527 0.08 % Loan nonaccrual interest(3) $ (26 ) 0.00 % $ (304 ) (0.02 )% $ 329 0.02 % For the Six Months Ended June 30, 2025 June 30, 2024 Average Average Average Average (In thousands) Balance Interest Rate * Balance Interest Rate * ASSETS Total loans(1) (2) $ 6,772,060 $ 206,907 6.15 % $ 6,447,785 $ 191,830 5.98 % Investment securities(2) 893,280 14,322 3.21 % 882,982 12,776 2.89 % Other interest-earning assets 444,416 10,084 4.57 % 350,342 9,283 5.32 % Total interest-earning assets 8,109,756 $ 231,313 5.74 % 7,681,109 $ 213,889 5.59 % Other assets, net 769,942 749,782 Total assets $ 8,879,698 $ 8,430,891 LIABILITIES AND STOCKHOLDERS' EQUITY Interest-bearing core deposits $ 5,001,624 $ 62,460 2.52 % $ 4,664,932 $ 62,969 2.71 % Brokered deposits 802,691 17,477 4.39 % 755,612 17,407 4.63 % Total interest-bearing deposits 5,804,315 79,937 2.78 % 5,420,544 80,376 2.98 % Wholesale funding 158,336 4,127 5.26 % 163,718 4,384 5.38 % Total interest-bearing liabilities 5,962,651 $ 84,064 2.84 % 5,584,262 $ 84,760 3.05 % Noninterest-bearing demand deposits 1,671,010 1,727,829 Other liabilities 64,933 59,313 Stockholders' equity 1,181,104 1,059,487 Total liabilities and stockholders' equity $ 8,879,698 $ 8,430,891 Net interest income and rate spread $ 147,249 2.90 % $ 129,129 2.54 % Net interest margin 3.65 % 3.37 % Loan purchase accounting accretion (3) $ 2,950 0.09 % $ 3,055 0.08 % Loan nonaccrual interest(3) $ (330 ) (0.01 )% $ 88 — % * During fourth quarter 2024, Nicolet changed the annualization methodology utilized for the calculation of selected net interest margin components from actual/360 to actual/actual to be more consistent with the methodology typically used by peer banks and to cause quarterly results to be more consistent with annual results. Prior periods have been restated for this change in methodology. There was no change to the reported average balances or interest recognized. (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 and Loan nonaccrual interest included in Total loans interest above, and the related impact to net interest margin. Nicolet Bankshares, Inc. Reconciliation of Non-GAAP Financial Measures (Unaudited) For the Three Months Ended For the Six Months Ended (In thousands, except per share data) 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 6/30/2025 6/30/2024 Adjusted net income reconciliation:(1) Net income (GAAP) $ 36,035 $ 32,592 $ 34,480 $ 32,516 $ 29,273 $ 68,627 $ 57,063 Adjustments: Assets (gains) losses, net(2) 199 354 (510 ) (1,177 ) (616 ) 553 (2,525 ) Adjustments subtotal 199 354 (510 ) (1,177 ) (616 ) 553 (2,525 ) Tax on Adjustments(3) 39 69 (99 ) (230 ) (120 ) 108 (492 ) Adjusted net income (Non-GAAP) $ 36,195 $ 32,877 $ 34,069 $ 31,569 $ 28,777 $ 69,072 $ 55,030 Diluted earnings per common share: Diluted earnings per common share (GAAP) $ 2.34 $ 2.08 $ 2.19 $ 2.10 $ 1.92 $ 4.42 $ 3.74 Adjusted Diluted earnings per common share (Non-GAAP) $ 2.35 $ 2.10 $ 2.17 $ 2.04 $ 1.88 $ 4.45 $ 3.61 Tangible assets:(4) Total assets $ 8,930,809 $ 8,975,222 $ 8,796,795 $ 8,637,118 $ 8,557,017 Goodwill and other intangibles, net 385,107 386,588 388,140 389,727 391,421 Tangible assets $ 8,545,702 $ 8,588,634 $ 8,408,655 $ 8,247,391 $ 8,165,596 Tangible common equity:(4) Stockholders’ equity (common) $ 1,190,098 $ 1,183,268 $ 1,172,898 $ 1,149,327 $ 1,091,413 Goodwill and other intangibles, net 385,107 386,588 388,140 389,727 391,421 Tangible common equity $ 804,991 $ 796,680 $ 784,758 $ 759,600 $ 699,992 Tangible average common equity:(4) Average stockholders’ equity (common) $ 1,183,316 $ 1,178,868 $ 1,163,477 $ 1,118,242 $ 1,070,379 $ 1,181,104 $ 1,059,487 Average goodwill and other intangibles, net 385,735 387,260 388,824 390,453 392,171 386,494 393,066 Average tangible common equity $ 797,581 $ 791,608 $ 774,653 $ 727,789 $ 678,208 $ 794,610 $ 666,421 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) Includes the gains / (losses) on other assets and investments. (3) Assumes an effective tax rate of 19.5%. (4) 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. Source: Nicolet Bankshares, Inc.