AI Analysis | Feedback

Here are 1-3 brief analogies for Nicolet Bankshares (NIC):

• A regional version of US Bancorp, focused on Wisconsin and Upper Michigan.
• The PNC Financial Services for the Green Bay area and surrounding regions.
• A traditional bank much like a smaller, community-focused Truist Financial serving the Upper Midwest.

AI Analysis | Feedback

• Deposit Accounts: Nicolet Bankshares offers a variety of checking, savings, money market, and certificate of deposit accounts for both individual and business customers.
• Lending Services: The bank provides a comprehensive range of loan products including commercial and industrial loans, real estate loans, residential mortgages, and various consumer loans.
• Wealth Management: These services encompass financial planning, investment management, trust services, and retirement planning to help clients manage and grow their assets.
• Treasury Management: For businesses, Nicolet Bankshares offers services such as cash management, payment processing, fraud protection, and liquidity solutions.

AI Analysis | Feedback

Nicolet Bankshares (NIC) primarily serves a diverse customer base consisting of individuals and businesses across various segments rather than having a few major corporate customers.

Its major customer categories include:

• Consumer & Retail Banking Customers: Individuals, families, and households utilizing a broad range of personal financial products and services such as checking accounts, savings accounts, money market accounts, certificates of deposit, residential mortgages, home equity loans, auto loans, and personal loans.
• Commercial & Business Banking Customers: Small to medium-sized businesses, corporations, and non-profit organizations seeking financial solutions including commercial loans (e.g., lines of credit, term loans, commercial real estate loans), business deposit accounts, treasury management services, and merchant services.
• Wealth Management & Private Banking Customers: High-net-worth individuals, families, and institutions requiring specialized financial planning, investment management, trust services, retirement planning, and private banking services.

AI Analysis | Feedback

• Computer Services, Inc.

AI Analysis | Feedback

Michael E. Daniels, Chairman, President & CEO

Michael E. Daniels co-founded Nicolet National Bank in 2000 with Bob Atwell. Under his leadership, Nicolet grew from a start-up to approximately $9 billion in assets. He has led the successful integration of ten acquisitions in eight years. Daniels became President and CEO of Nicolet Bank in 2016 and President and CEO of Nicolet Bankshares in 2021, adding Chairman responsibilities in 2024. He serves on various community and non-profit boards, including being the founding President of the Nicolet National Foundation and a Board Director of the Green Bay Packers.

Hubert Phillip Moore, Jr., Principal Accounting Officer; Chief Financial Officer

Phil Moore joined Nicolet Bankshares after a distinguished career as an accountant and auditor of community banks. Before joining Nicolet, he served as the Southeast US Market Leader for Wipfli LLP. Prior to that, Mr. Moore was the managing partner of Porter Keadle Moore, LLC.

Eric James Witczak, Executive Vice President and Secretary; Executive Vice President and Chief Operating Officer of Nicolet Bank

Eric Witczak is one of the early leaders at Nicolet, having joined the company shortly after its founding. He is responsible for all revenue lines of Nicolet, which include commercial banking, agricultural banking, retail and private banking, mortgage banking, and wealth management. Witczak is a graduate of St. Norbert College and is involved with several non-profit boards.

Brad Vincent Hutjens, Executive Vice President, Chief Credit Officer and Chief Compliance and Risk Manager of Nicolet Bank

Brad Vincent Hutjens holds the positions of Executive Vice President, Chief Credit Officer, and Chief Compliance and Risk Manager for Nicolet Bank.

William M. Bohn, Executive Vice President, Wealth Management, Private Client and Trust Services of Nicolet Bank

William M. Bohn serves as the Executive Vice President of Wealth Management, Private Client and Trust Services for Nicolet Bank.

AI Analysis | Feedback

The key risks to Nicolet Bankshares (NIC) primarily revolve around the broader economic and regulatory environment impacting the banking sector, alongside inherent operational challenges.

1. Market Conditions and Interest Rate Fluctuations: Economic downturns, significant changes in interest rates, and other market conditions can profoundly affect Nicolet Bankshares' financial health. A recession could lead to an increase in loan defaults, a decrease in demand for new loans, and a reduction in asset values. Fluctuations in interest rates directly impact the bank's net interest margin (NIM), which is the difference between the interest earned on loans and the interest paid on deposits, thereby influencing profitability and financial stability. Although Nicolet's NIM recently expanded, this positive trend is considered fragile, and persistent high interest rates or a reversal where funding costs outpace asset yields remain a significant threat. Pressure on funding costs is a sector-wide risk.
2. Operational and Cybersecurity Risks: Like any financial institution, Nicolet Bankshares is susceptible to risks associated with its internal processes, systems, and personnel, with cybersecurity being a particularly heightened concern. The increasing reliance on digital platforms expands the potential for sophisticated threats and information security breaches. Managing and mitigating these cybersecurity risks requires continuous resources and strategies to ensure the protection of data and operational continuity.
3. Intense Industry Competition and Regulatory Landscape: The banking industry is highly competitive, with Nicolet Bankshares vying for loans, deposits, and other financial services against a diverse array of banks, credit unions, and non-bank financial institutions. This intense competition can lead to pressure on interest rates, reduced fee income, and a potential loss of market share, negatively impacting profitability. Additionally, the banking sector is subject to a dynamic regulatory landscape. New regulations can alter fee income structures or lending practices, and ongoing compliance with banking regulations, reporting standards, and operational governance is crucial for maintaining stability and continuity.

AI Analysis | Feedback

The increasing competition from digital-only banks and fintech platforms poses an emerging threat. These entities, with their lower operational overhead (due to the absence of physical branches), can offer more attractive interest rates on deposits and fewer fees, drawing customers away from traditional banks like Nicolet Bankshares. This impacts NIC's ability to attract and retain low-cost deposits, which are crucial for funding its lending activities. Additionally, fintech lenders utilize advanced technology to offer more streamlined and rapid application and approval processes for various loan products (e.g., personal loans, small business loans), potentially eroding NIC's market share in these lending segments.

AI Analysis | Feedback

Nicolet Bankshares, Inc. (NIC) primarily offers commercial, agricultural, and consumer banking services, along with wealth management and retirement plan services. The company operates through its subsidiary, Nicolet National Bank, with branches predominantly located in Wisconsin and Michigan, and a presence in Minnesota and Naples, Florida.

Based on their main products and operating regions, the addressable market sizes are as follows:

• For Commercial Banking in Michigan, the market size is estimated at $23.6 billion in 2025.
• For Commercial Banking in Wisconsin, the market size is estimated at $19.0 billion in 2025.
• The total assets for Wisconsin's state-chartered banks, representing a broader banking market, amounted to $70.24 billion at year-end 2024.

AI Analysis | Feedback

1. Strategic Acquisitions and Market Expansion: Nicolet Bankshares is pursuing growth through strategic acquisitions, most notably the planned acquisition of MidWestOne, expected to close in 2026. This acquisition is anticipated to significantly expand Nicolet's geographic footprint, nearly doubling its branch count to 110 across five states and increasing its assets to over $15 billion. This inorganic growth strategy is intended to diversify its loan mix and achieve cost savings, contributing to overall revenue expansion.
2. Organic Growth in Loans and Core Deposits: The company has consistently demonstrated strong organic growth in both its loan portfolio and core deposits. For instance, Nicolet reported exceptional quarter-over-quarter core deposit growth of $223 million (13% annualized) in the third quarter of 2025, alongside continued growth in loans. This expansion of its customer base and lending activities is a fundamental driver of increasing net interest income.
3. Expansion of Fee-Based Income (Wealth Management and Mortgage Services): Nicolet is experiencing revenue increases from non-interest income streams, particularly in its wealth management and mortgage services. The third quarter of 2025 saw an increase of $0.8 million in wealth income and $0.7 million in net mortgage income. The company's dedicated team of wealth advisors and its substantial mortgage servicing portfolio are expected to continue driving growth in these fee-generating services.

AI Analysis | Feedback

Share Repurchases

• Nicolet Bankshares repurchased 155,393 common shares for $21 million during the third quarter of 2025.
• In the second quarter of 2025, share repurchases amounted to $33.41 million.
• The company executed share repurchases of $30.00 million in the first quarter of 2025 and $11.43 million in the fourth quarter of 2024.

Share Issuance

• An equity award of up to 90,000 shares of common stock, valued at approximately $12 million, was granted to CEO Mike Daniels. This award includes 30,000 restricted shares and up to 60,000 restricted stock units.

Outbound Investments

• In October 2025, Nicolet Bankshares agreed to acquire MidWestOne Financial Group in an all-stock transaction valued at approximately $864 million, with the deal expected to close in the first half of 2026.
• The company completed a merger with Charter Bankshares, Inc. on August 30, 2022, which was valued at $1.1 billion at the time of the acquisition.
• Nicolet completed a merger with Mackinac Financial Corporation on September 3, 2021.