Management periodically reviews the carrying value of its intangible assets to determine if any impairment has occurred, in which case an impairment charge would be recorded as an expense in the period of impairment, or whether changes in circumstances have occurred that would require a revision to the remaining useful life that would affect expense prospectively. In making such determination, management evaluates whether there are any adverse qualitative factors indicating that an impairment may exist, as well as the performance of the underlying operations or assets which give rise to the intangible. Management also regularly monitors economic factors for potential impairment indications on the value of our franchise, stability of deposits, and the wealth client base, underlying our goodwill and other intangibles. Management concluded no impairment was indicated for the six months ended June 30, 2025 and the year ended December 31, 2024. A summary of goodwill and other intangibles was as follows.



(in thousands)	June 30, 2025		December 31, 2024
Goodwill	$	367,387	$	367,387
Core deposit intangibles	16,072		18,815
Customer list intangibles	1,648		1,938
Other intangibles	17,720		20,753
Goodwill and other intangibles, net	$	385,107	$	388,140

Other intangible assets: Other intangible assets, consisting of core deposit intangibles and customer list intangibles, are amortized over their estimated finite lives. During first quarter 2024, Nicolet purchased a financial advisory book of business and established a corresponding customer list intangible. A summary of other intangible assets was as follows.


	Six Months Ended		Year Ended
(in thousands)	June 30, 2025		December 31, 2024
Core deposit intangibles:
Gross carrying amount *	$	56,588	$	60,724
Accumulated amortization *	(40,516)		(41,909)
Net book value	$	16,072	$	18,815

Amortization during the period	$	2,743	$	6,297
Customer list intangibles:
Gross carrying amount	$	6,173	$	6,173
Accumulated amortization	(4,525)		(4,235)
Net book value	$	1,648	$	1,938
Additions during the period	$	—	$	650
Amortization during the period	$	290	$	579

Mortgage servicing rights (“MSR”): The Company sells originated residential mortgage loans into the secondary market and retains the right to service these sold loans. Mortgage servicing rights are amortized in proportion to and over the period of estimated net servicing income, and assessed for impairment at each reporting date, with the amortization recorded in mortgage income, net, in the consolidated statements of income. Mortgage servicing rights are carried at the lower of the initial capitalized amount, net of accumulated amortization, or estimated fair value, and are included in other assets in the consolidated balance sheets. The Company periodically evaluates its mortgage servicing rights asset for impairment. At each reporting date, impairment is assessed based on estimated fair value using estimated prepayment speeds of the underlying mortgage loans serviced and stratification based on the risk characteristics of the underlying loans (predominantly loan type and note interest rate).


	Six Months Ended		Year Ended
(in thousands)	June 30, 2025		December 31, 2024
Servicing rights asset at beginning of year	$	18,954	$	20,486
Capitalized servicing rights	1,219		2,750

Sale of servicing rights ^	(64)		—
Amortization during the period	(2,067)		(4,282)
Servicing rights asset at end of period	$	18,042	$	18,954
Valuation allowance at beginning of year	$	(120)	$	—
(Additions) / Reversals, net	79		(120)
Charge-offs ^	41		—
Valuation allowance at end of period	$	—	$	(120)
Servicing rights asset, net	$	18,042	$	18,834
Residential mortgage loans serviced for others	$	1,616,737	$	1,644,821
Agricultural loans serviced for others	$	414,204	$	438,954

^ During first quarter 2025, Nicolet sold mortgage servicing rights with a remaining carrying value of $64,000 for $23,000 and the difference of $41,000 was charged-off through the valuation allowance. These serviced loans had a remaining loan balance of approximately $30 million at the time of sale.

Estimated future amortization: The following table shows the estimated future amortization expense for amortizing intangible assets and servicing assets. The projections are based on existing asset balances, the current interest rate environment and estimated prepayment speeds as of June 30, 2025. The actual amortization expense the Company recognizes in any given period may be significantly different depending upon acquisition or sale activities, changes in interest rates, prepayment speeds, market conditions, regulatory requirements and events or circumstances that indicate the carrying amount of an asset may not be recoverable.


(in thousands)	Core deposit intangibles		Customer list intangibles		Servicing rights asset
Year ending December 31,
2025 (remaining six months)	$	2,418	$	289	$	2,202
2026	3,983		379		3,577
2027	3,218		296		3,126
2028	2,622		296		2,754
2029	1,911		166		2,302
2030	1,219		166		1,710
Thereafter	701		56		2,371
Total	$	16,072	$	1,648	$	18,042