Open the filing on EDGARNICOLET BANKSHARES, INC. ANNOUNCES FIRST QUARTER 2026 EARNINGS
- Acquisition of MidWestOne closed on February 13, adding approximately $6 billion in assets
- Net income of $15 million ($52 million core *) for first quarter 2026, compared to net income of $40 million ($42 million core *) for fourth quarter 2025
- Diluted earnings per share of $0.81 ($2.75 core *) for first quarter 2026, compared to $2.65 ($2.73 core *) for fourth quarter 2025
- Return on average assets of 0.50% for first quarter 2026, and core * return on average assets of 1.68%
- Return on average tangible common equity of 6.49% for first quarter 2026, and core * return on average tangible common equity of 19.30%, with return on average equity of 3.44%
- Increased quarterly dividend on common stock by 13% to $0.36 per share
- Announced the sale of the Denver branches acquired from MidWestOne (approximately $390 million in loans and approximately $380 million in deposits) to Sunwest Bank
* Core net income, diluted earnings per share, return on average assets, and return on average tangible common equity are non-GAAP financial measures
Green Bay, Wisconsin, April 21, 2026 - Nicolet Bankshares, Inc. (NYSE: NIC) (“Nicolet”) announced net income of $15 million and earnings per diluted common share of $0.81 for first quarter 2026, compared to net income of $33 million and earnings per diluted common share of $2.08 for first quarter 2025 and net income of $40 million and earnings per diluted common share of $2.65 for fourth quarter 2025. Net income included certain non-core items, mostly merger-related expenses, that negatively impacted earnings per diluted common share $1.94 for first quarter 2026, resulting in core diluted earnings per common share (non-GAAP) of $2.75.
On February 13, 2026, Nicolet completed its acquisition of MidWestOne Financial Group, Inc. (“MidWestOne”), creating one of the largest community banks in the Upper Midwest. MidWestOne shareholders received 0.3175 shares of Nicolet common stock for each share of MidWestOne common stock owned, resulting in the issuance of approximately 6.6 million shares of Nicolet common stock valued at $1.0 billion (based upon the closing stock price of Nicolet’s common stock on February 13, 2026). Upon consummation, MidWestOne added total assets of $6.1 billion, loans of $4.4 billion, deposits of $5.3 billion, and preliminary goodwill of approximately $0.5 billion to Nicolet’s balance sheet.
Evaluation of financial performance and balance sheet line items is impacted both by the timing and size of the MidWestOne acquisition. Certain income statement results, average balances, and related ratios for 2026 include partial contributions from MidWestOne from the acquisition date.
“This quarter reflects disciplined execution through a period of transformational growth,” said Mike Daniels, Chairman, President, and CEO of Nicolet. “We delivered solid core earnings, expanded margins, and increased tangible book value with no material per share dilution in book value from the MidWestOne acquisition. Also, our strong profitability allows us to continue to return capital to shareholders through a 13% increase in our dividend as well as restarting our share repurchase program during the quarter. All of this occurred while completing a transaction that we believe strengthens Nicolet’s competitive position and long-term shared success returns to our Three Circles.”
Daniels continued, “The integration continues as planned with no surprises and I am continually encouraged by the alignment between our teams. Our core conversion is currently scheduled for late summer, after which all anticipated cost savings should be realized and we look to return to our regular position of producing top decile core profitability.”
Balance Sheet Review
At March 31, 2026, period end assets were $15.6 billion, an increase of $6.4 billion from December 31, 2025, largely due to the acquisition of MidWestOne, which added $6.1 billion of total assets at acquisition. Total loans increased $4.0 billion from December 31, 2025, with MidWestOne adding loans of $4.4 billion at acquisition. Total deposits of $12.6 billion at March 31, 2026, increased $4.9 billion from December 31, 2025, also largely due to the acquisition of MidWestOne. Total capital was $2.3 billion at March 31, 2026, an increase of $1.0 billion over December 31, 2025, mostly due to the acquisition of MidWestOne.
Asset Quality
Nonperforming assets were $79 million and represented 0.51% of total assets at March 31, 2026, compared to $32 million and 0.35% of total assets at December 31, 2025, with the increase largely due to the MidWestOne acquisition. The allowance for credit losses-loans was $133 million and represented 1.23% of total loans at March 31, 2026, compared to $69 million (or 1.01% of total loans) at December 31, 2025, with the increase mostly due to the allowance increase from the acquisition of MidWestOne. Asset quality trends remain solid and loan net charge-offs were negligible.
Income Statement Review - Quarter
Net income was $15 million for first quarter 2026, compared to net income of $40 million for fourth quarter 2025.
Net interest income was $110 million for first quarter 2026, $29 million (35%) higher than fourth quarter 2025, the net of a $38 million increase in interest income and a $9 million increase in interest expense. Average interest-earning assets of $11.2 billion were up $2.9 billion from fourth quarter 2025, with higher average loans (up $2.3 billion) and higher average securities (up $578 million), mostly due to the MidWestOne acquisition. Average interest-bearing liabilities of $8.4 billion were up $2.4 billion from fourth quarter 2025, mostly due to higher average interest-bearing deposits (up $2.4 billion) acquired with MidWestOne.
The net interest margin for first quarter 2026 was 3.98%, compared to 3.86% for fourth quarter 2025. The yield on interest-earning assets increased 1 bp (to 5.73%), while the cost of interest-bearing liabilities for first quarter 2026 decreased 25 bps (to 2.36%).
Noninterest income was $25 million for first quarter 2026, up $2 million compared to fourth quarter 2025. Excluding net asset gains (losses), noninterest income was up $3 million, including a $2 million increase in wealth management fee income and a $1 million increase in service charges on deposit accounts, both mostly due to the MidWestOne acquisition. Net asset losses were $1 million for first quarter 2026 (comprised primarily of a write-down on an equity investment), compared to nominal net asset gains for fourth quarter 2025.
Noninterest expense was $110 million for first quarter 2026, a $57 million increase from fourth quarter 2025, mostly due to a $39 million increase in merger-related expense. Personnel expense increased $8 million from fourth quarter 2025, reflecting the larger employee base post-acquisition. Non-personnel expense increased $49 million from fourth quarter 2025, and included the increase in merger-related expense, as well as higher overall expense for a larger operating base.
Subsequent Event
Nicolet National Bank has entered into a definitive purchase and assumption agreement to sell its Denver, Colorado banking branches (acquired in the MidWestOne transaction) to Sunwest Bank. This transaction is an all-cash deal that has been approved by the respective boards of directors, and is expected to close in third quarter 2026, subject to regulatory approval and other standard closing conditions. As of March 31, 2026, the Denver locations had total loans of approximately $390 million and deposits of approximately $380 million. Hovde Group, LLC served as financial adviser and Nelson Mullins Riley & Scarborough LLP provided legal counsel to Nicolet.
Declaration of Quarterly Cash Dividend to Shareholders
On April 21, 2026, Nicolet’s Board of Directors declared a quarterly cash dividend of $0.36 per share to holders of its common stock, an increase of $0.04 per share, or 13%, over the prior quarter. The dividend is payable on June 15, 2026, to shareholders of record as of June 1, 2026.
Next Quarterly Earnings Release
Nicolet expects to issue the second quarter 2026 earnings release on July 21, 2026.
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, Iowa, 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 core net income, core 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.
Forward Looking Statements “Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995
Forward-looking statements notice
This communication contains statements that constitute “forward-looking statements” within the meaning, and subject to the protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. Such statements include, but are not limited to, statements related to the expected completion of the core conversion of the integration process of the Nicolet/MidWestOne merger and resulting cost savings, the expected return to top decile core profitability, the expected closing date of the sale of our Denver branches, and other statements that may not be historical facts. You can identify these forward-looking statements through the use of words such as “anticipate,” “believe,” “assume,” “aim,” “can,” “conclude,” “continue,” “could,” “estimate,” “expect,” “foresee,” “goal,” “intend,” “may,” “might,” “outlook,” “possible,” “plan,” “predict,” “project,” “potential,” “seek,” “should,” “target,” “will,” “will likely,” “would,” or the negative of these terms or other comparable terminology, as well as similar expressions of the future or otherwise regarding the outlook for Nicolet’s, MidWestOne’s or the combined company’s future businesses and financial performance and/or the performance of the banking industry and economy in general.
Forward-looking statements notice
Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and express only management’s beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management’s control or predict. A number of factors could cause actual results and outcomes to differ materially from those contemplated by these forward-looking statements. These factors include, but are not limited to: (1) the risk that integration of MidWestOne’s and Nicolet’s respective businesses will be materially delayed or will be more costly or difficult than expected, including as a result of unexpected factors or events; (2) the parties’ inability to meet expectations regarding the timing of the proposed sale of the Denver branches; (3) the inability of either Nicolet or Sunwest Bank to obtain required governmental approvals of the proposed sale of the Denver branches on the timeline expected, or at all, and (4) the failure to satisfy other conditions to completion of the proposed sale, or any unexpected delay in closing the proposed transaction or the occurrence of any event, change or other circumstances that could give rise to the termination of the purchase and assumption agreement.
All forward-looking statements included in this communication are made as of the date hereof and are based on information available to management at that time. Except as required by law, Nicolet does not assume any obligation to update any forward-looking statement to reflect events or circumstances that occur after the date the forward-looking statements were made.
| Nicolet Bankshares, Inc. | | | | | |
| Consolidated Balance Sheets (Unaudited) | | | | | |
| (In thousands, except share data) | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 |
| Assets | | | | | |
| Cash and due from banks | $123,359 | $107,956 | $94,402 | $129,607 | $105,085 |
| Interest-earning deposits | 492,092 | 552,276 | 379,555 | 293,031 | 467,095 |
| Cash and cash equivalents | 615,451 | 660,232 | 473,957 | 422,638 | 572,180 |
| Securities available for sale, at fair value | 1,986,946 | 859,834 | 861,534 | 849,253 | 838,105 |
| Other investments | 99,835 | 63,247 | 61,380 | 59,594 | 58,627 |
| Loans held for sale | 16,627 | 13,620 | 11,308 | 9,955 | 8,092 |
| Other assets held for sale | 400,443 | - | - | - | - |
| Loans | 10,879,694 | 6,836,345 | 6,874,711 | 6,839,141 | 6,745,598 |
| Allowance for credit losses - loans | (133,435) | (68,806) | (68,785) | (68,408) | (67,480) |
| Loans, net | 10,746,259 | 6,767,539 | 6,805,926 | 6,770,733 | 6,678,118 |
| Premises and equipment, net | 187,876 | 120,462 | 121,711 | 123,723 | 125,274 |
| Bank owned life insurance (“BOLI”) | 293,790 | 192,498 | 190,979 | 189,342 | 187,902 |
| Goodwill and other intangibles, net | 967,843 | 382,400 | 383,693 | 385,107 | 386,588 |
| Accrued interest receivable and other assets | 259,420 | 125,275 | 118,942 | 120,464 | 120,336 |
| Total assets | $15,574,490 | $9,185,107 | $9,029,430 | $8,930,809 | $8,975,222 |
| Liabilities and Stockholders' Equity | | | | | |
| Liabilities: | | | | | |
| Noninterest-bearing demand deposits | $2,537,729 | $1,828,928 | $1,826,453 | $1,800,335 | $1,689,129 |
| Interest-bearing deposits | 10,086,635 | 5,901,843 | 5,785,012 | 5,741,338 | 5,883,061 |
| Total deposits | 12,624,364 | 7,730,771 | 7,611,465 | 7,541,673 | 7,572,190 |
| Long-term borrowings | 179,968 | 134,860 | 134,600 | 134,340 | 156,563 |
| Other liabilities held for sale | 385,882 | - | - | - | - |
| Accrued interest payable and other liabilities | 127,399 | 61,814 | 68,405 | 64,698 | 63,201 |
| Total liabilities | 13,317,613 | 7,927,445 | 7,814,470 | 7,740,711 | 7,791,954 |
| Stockholders' Equity: | | | | | |
| Common stock | 213 | 148 | 148 | 149 | 152 |
| Additional paid-in capital | 1,589,992 | 583,257 | 581,815 | 601,625 | 630,340 |
| Retained earnings | 706,099 | 697,799 | 662,252 | 625,243 | 594,068 |
| Accumulated other comprehensive income (loss) | (39,427) | (23,542) | (29,255) | (36,919) | (41,292) |
| Total stockholders' equity | 2,256,877 | 1,257,662 | 1,214,960 | 1,190,098 | 1,183,268 |
| Total liabilities and stockholders' equity | $15,574,490 | $9,185,107 | $9,029,430 | $8,930,809 | $8,975,222 |
| Common shares outstanding | 21,316,619 | 14,811,445 | 14,798,895 | 14,924,086 | 15,149,341 |
| For the Three Months Ended |
|---|
| Nicolet Bankshares, Inc. | | | | | |
| Consolidated Statements of Income (Unaudited) | | | |
| (In thousands, except per share data) | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 |
| Interest income: | | | | | |
| Loans, including loan fees | $139,784 | | $106,579 | | $107,930 | | $105,976 | | $100,666 | |
| Taxable investment securities | 11,955 | | 6,294 | | 6,201 | | 6,027 | | 5,560 | |
| Tax-exempt investment securities | 1,358 | | 972 | | 998 | | 1,017 | | 1,049 | |
| Other interest income | 5,115 | | 6,393 | | 5,204 | | 4,618 | | 5,466 | |
| Total interest income | 158,212 | | 120,238 | | 120,333 | | 117,638 | | 112,741 | |
| Interest expense: | | | | | |
| Deposits | 46,656 | | 37,622 | | 39,312 | | 40,472 | | 39,465 | |
| Short-term borrowings | - | | 1 | | - | | - | | - | |
| Long-term borrowings | 1,997 | | 1,721 | | 1,757 | | 2,057 | | 2,070 | |
| Total interest expense | 48,653 | | 39,344 | | 41,069 | | 42,529 | | 41,535 | |
| Net interest income | 109,559 | | 80,894 | | 79,264 | | 75,109 | | 71,206 | |
| Provision for credit losses | 6,050 | | 750 | | 950 | | 1,050 | | 1,500 | |
| Net interest income after provision for credit losses | 103,509 | | 80,144 | | 78,314 | | 74,059 | | 69,706 | |
| Noninterest income: | | | | | |
| Wealth management fee income | 10,655 | | 8,196 | | 7,629 | | 6,811 | | 6,975 | |
| Mortgage income, net | 3,539 | | 3,653 | | 3,568 | | 2,907 | | 1,926 | |
| Service charges on deposit accounts | 3,149 | | 2,016 | | 2,000 | | 1,962 | | 2,025 | |
| Card interchange income | 4,228 | | 3,772 | | 3,752 | | 3,699 | | 3,337 | |
| BOLI income | 1,882 | | 1,857 | | 1,654 | | 1,429 | | 1,420 | |
| Asset gains (losses), net | (867) | | 422 | | 1,294 | | (199) | | (354) | |
| Deferred compensation plan asset market valuations | (277) | | 465 | | 972 | | 1,437 | | 45 | |
| LSR income, net | 711 | | 644 | | 668 | | 950 | | 1,057 | |
| Other noninterest income | 2,274 | | 2,067 | | 2,082 | | 1,637 | | 1,792 | |
| Total noninterest income | 25,294 | | 23,092 | | 23,619 | | 20,633 | | 18,223 | |
| Noninterest expense: | | | | | |
| Personnel expense | 38,159 | | 30,233 | | 29,437 | | 29,114 | | 26,521 | |
| Occupancy, equipment and office | 12,375 | | 9,169 | | 9,028 | | 9,104 | | 9,330 | |
| Business development and marketing | 2,337 | | 2,093 | | 2,223 | | 1,593 | | 2,100 | |
| Data processing | 6,185 | | 4,691 | | 4,671 | | 4,682 | | 4,525 | |
| Intangibles amortization | 4,096 | | 1,293 | | 1,414 | | 1,481 | | 1,552 | |
| FDIC assessments | 1,275 | | 1,033 | | 1,005 | | 1,029 | | 940 | |
| Merger-related expense | 40,686 | | 1,956 | | - | | - | | - | |
| Other noninterest expense | 4,682 | | 2,571 | | 2,310 | | 2,916 | | 2,819 | |
| Total noninterest expense | 109,795 | | 53,039 | | 50,088 | | 49,919 | | 47,787 | |
| Income before income tax expense | 19,008 | | 50,197 | | 51,845 | | 44,773 | | 40,142 | |
| Income tax expense | 3,812 | | 9,873 | | 10,110 | | 8,738 | | 7,550 | |
| Net income | $15,196 | | $40,324 | | $41,735 | | $36,035 | | $32,592 | |
| Earnings per common share: | | | | | |
| Basic | $0.83 | | $2.72 | | $2.81 | | $2.40 | | $2.14 | |
| Diluted | $0.81 | | $2.65 | | $2.73 | | $2.34 | | $2.08 | |
| Common shares outstanding: | | | | | |
| Basic weighted average | | 18,232 | | 14,804 | | 14,836 | | 15,029 | | 15,256 |
| Diluted weighted average | | 18,749 | | 15,227 | | 15,303 | | 15,431 | | 15,647 |
| For the Three Months Ended |
|---|
| Nicolet Bankshares, Inc. | | | | | |
| Consolidated Financial Summary (Unaudited) | | | |
| (In thousands, except share & per share data) | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 |
| Selected Average Balances: | | | | | |
| Loans | $9,194,624 | $6,858,444 | $6,843,189 | $6,833,236 | $6,710,206 |
| Investment securities | 1,479,693 | 902,147 | 903,839 | 900,469 | 886,010 |
| Interest-earning assets | 11,235,506 | 8,381,031 | 8,206,651 | 8,140,178 | 8,078,997 |
| Cash and cash equivalents | 576,905 | 634,751 | 480,208 | 423,272 | 497,865 |
| Goodwill and other intangibles, net | 642,403 | 382,956 | 384,296 | 385,735 | 387,260 |
| Total assets | 12,429,336 | 9,163,123 | 8,984,344 | 8,909,653 | 8,849,412 |
| Deposits | 10,386,008 | 7,717,321 | 7,583,986 | 7,504,224 | 7,446,107 |
| Interest-bearing liabilities | 8,363,619 | 5,989,196 | 5,911,850 | 5,972,117 | 5,953,083 |
| Stockholders’ equity (common) | 1,792,181 | 1,234,619 | 1,194,974 | 1,183,316 | 1,178,868 |
| Selected Ratios: | | | | | |
| Book value per common share | $105.87 | $84.91 | $82.10 | $79.74 | $78.11 |
| Tangible book value per common share | $60.47 | $59.09 | $56.17 | $53.94 | $52.59 |
| Return on average assets | 0.50% | 1.75% | 1.84% | 1.62% | 1.49% |
| Return on average common equity | 3.44 | 12.96 | 13.86 | 12.21 | 11.21 |
| Return on average tangible common equity | 6.49 | 19.27 | 20.98 | 18.72 | 17.34 |
| Core return on average assets (non-GAAP) | 1.68 | 1.80 | 1.80 | 1.63 | 1.51 |
| Core return on average common equity (non-GAAP) | 11.66 | 13.35 | 13.51 | 12.27 | 11.31 |
| Core return on average tangible common equity (non-GAAP) | 19.30 | 19.84 | 20.47 | 18.80 | 17.48 |
| Average equity to average assets | 14.42 | 13.47 | 13.30 | 13.28 | 13.32 |
| Stockholders’ equity to assets | 14.49 | 13.69 | 13.46 | 13.33 | 13.18 |
| Tangible common equity to tangible assets | 8.82 | 9.94 | 9.61 | 9.42 | 9.28 |
| Net interest margin | 3.98 | 3.86 | 3.86 | 3.72 | 3.58 |
| Efficiency ratio | 80.30 | 51.00 | 49.10 | 51.79 | 52.94 |
| Effective tax rate | 20.05 | 19.67 | 19.50 | 19.52 | 18.81 |
| Selected Asset Quality Information: | | | |
| Nonaccrual loans | $73,494 | $31,679 | $27,463 | $27,735 | $28,325 |
| Other real estate owned | 5,985 | 667 | 767 | 881 | 946 |
| Nonperforming assets | $79,479 | $32,346 | $28,230 | $28,616 | $29,271 |
| Net loan charge-offs (recoveries) | $833 | $529 | $573 | $372 | $342 |
| Allowance for credit losses-loans to loans | 1.23% | 1.01% | 1.00% | 1.00% | 1.00% |
| Net charge-offs to average loans | 0.04 | 0.03 | 0.03 | 0.02 | 0.02 |
| Nonperforming loans to total loans | 0.68 | 0.46 | 0.40 | 0.41 | 0.42 |
| Nonperforming assets to total assets | 0.51 | 0.35 | 0.31 | 0.32 | 0.33 |
| Stock Repurchase Information: | | | | | |
| Common stock repurchased ($) | $22,401 | $ - | $20,525 | $29,989 | $26,047 |
| Common stock repurchased (shares) | 149,499 | - | 155,393 | 257,402 | 233,207 |
(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) | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 |
| Period End Loan Composition | | | | | |
| Commercial & industrial | $2,330,665 | $1,367,522 | $1,415,841 | $1,412,621 | $1,409,320 |
| Owner-occupied commercial real estate (“CRE”) | 1,558,995 | 939,587 | 947,390 | 963,278 | 949,107 |
| Agricultural | 1,759,960 | 1,415,425 | 1,378,070 | 1,346,924 | 1,329,807 |
| Commercial | 5,649,620 | 3,722,534 | 3,741,301 | 3,722,823 | 3,688,234 |
| CRE investment | 2,378,946 | 1,188,351 | 1,213,301 | 1,231,423 | 1,225,490 |
| Construction & land development | 575,030 | 326,638 | 324,209 | 298,122 | 273,007 |
| Commercial real estate | 2,953,976 | 1,514,989 | 1,537,510 | 1,529,545 | 1,498,497 |
| Commercial-based loans | 8,603,596 | 5,237,523 | 5,278,811 | 5,252,368 | 5,186,731 |
| Residential construction | 144,737 | 95,268 | 92,325 | 88,152 | 91,321 |
| Residential first mortgage | 1,580,088 | 1,193,683 | 1,199,512 | 1,205,841 | 1,194,116 |
| Residential junior mortgage | 464,395 | 268,188 | 260,167 | 249,406 | 235,096 |
| Residential real estate | 2,189,220 | 1,557,139 | 1,552,004 | 1,543,399 | 1,520,533 |
| Retail & other | 86,878 | 41,683 | 43,896 | 43,374 | 38,334 |
| Retail-based loans | 2,276,098 | 1,598,822 | 1,595,900 | 1,586,773 | 1,558,867 |
| Total loans | $10,879,694 | $6,836,345 | $6,874,711 | $6,839,141 | $6,745,598 |
| Period End Deposit Composition | | | | | |
| Noninterest-bearing demand | $2,537,729 | $1,828,928 | $1,826,453 | $1,800,335 | $1,689,129 |
| Interest-bearing demand | 2,516,924 | 1,263,276 | 1,104,552 | 1,266,507 | 1,239,075 |
| Money market | 2,955,846 | 2,056,550 | 2,044,055 | 1,900,639 | 1,988,648 |
| Savings | 1,763,204 | 834,520 | 825,683 | 805,300 | 794,223 |
| Time | 2,850,661 | 1,747,497 | 1,810,722 | 1,768,892 | 1,861,115 |
| Total deposits | $12,624,364 | $7,730,771 | $7,611,465 | $7,541,673 | $7,572,190 |
| Brokered transaction accounts * | $175,000 | $25,000 | $25,000 | $155,000 | $100,000 |
| Brokered time deposits * | 409,922 | 382,116 | 422,516 | 429,303 | 585,372 |
| Total brokered deposits * | $584,922 | $407,116 | $447,516 | $584,303 | $685,372 |
| Customer transaction accounts * | $9,598,703 | $5,958,274 | $5,775,743 | $5,617,781 | $5,611,075 |
| Customer time deposits * | 2,440,739 | 1,365,381 | 1,388,206 | 1,339,589 | 1,275,743 |
| Total customer deposits (core) * | $12,039,442 | $7,323,655 | $7,163,949 | $6,957,370 | $6,886,818 |
* During first quarter 2026, Nicolet reclassified fully reciprocated deposit balances with ICS from brokered deposits to core deposits to be more consistent with the presentation typically used by peer banks. The ICS reciprocal deposits are part of the IntraFi Network Deposits program, which is used by financial institutions to distribute deposits that exceed FDIC insurance coverage limits to numerous institutions in order to provide insurance coverage for all participating deposits. Prior periods have been restated to reflect this change. There was no change to total deposits or the deposit categories.
| For the Three Months Ended |
|---|
| March 31, 2026 | December 31, 2025 | March 31, 2025 |
|---|
| Average | | Average | Average | | Average | Average | | Average |
|---|
| Nicolet Bankshares, Inc. | | | | | |
| Net Interest Income and Net Interest Margin Analysis (Unaudited) | | | | | |
| (In thousands) | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate |
| ASSETS | | | | | | | | | |
| Total loans (1) (2) | $9,194,624 | $140,412 | 6.18% | $6,858,444 | $106,696 | 6.18% | $6,710,206 | $100,804 | 6.08% |
| Investment securities | 1,479,693 | 13,703 | 3.71% | 902,147 | 7,578 | 3.36% | 886,010 | 6,951 | 3.14% |
| Other interest-earning assets | 561,189 | 5,115 | 3.69% | 620,440 | 6,393 | 4.09% | 482,781 | 5,466 | 4.58% |
| Total interest-earning assets | 11,235,506 | $159,230 | 5.73% | 8,381,031 | $120,667 | 5.72% | 8,078,997 | $113,221 | 5.67% |
| Other assets, net | 1,193,830 | | | 782,092 | | | 770,415 | | |
| Total assets | $12,429,336 | | | $9,163,123 | | | $8,849,412 | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | |
| Interest-bearing core deposits * | $7,702,195 | $41,762 | 2.20% | $5,417,210 | $32,829 | 2.40% | $5,180,098 | $32,575 | 2.55% |
| Brokered deposits * | 502,241 | 4,894 | 3.95% | 437,138 | 4,793 | 4.35% | 611,897 | 6,890 | 4.57% |
| Total interest-bearing deposits | 8,204,436 | 46,656 | 2.31% | 5,854,348 | 37,622 | 2.55% | 5,791,995 | 39,465 | 2.76% |
| Wholesale funding | 159,183 | 1,997 | 5.09% | 134,848 | 1,722 | 5.07% | 161,088 | 2,070 | 5.21% |
| Total interest-bearing liabilities | 8,363,619 | $48,653 | 2.36% | 5,989,196 | $39,344 | 2.61% | 5,953,083 | $41,535 | 2.83% |
| Noninterest-bearing demand deposits | 2,181,572 | | | 1,862,973 | | | 1,654,112 | | |
| Other liabilities | 91,964 | | | 76,335 | | | 63,349 | | |
| Stockholders' equity | 1,792,181 | | | 1,234,619 | | | 1,178,868 | | |
| Total liabilities and stockholders' equity | $12,429,336 | | | $9,163,123 | | | $8,849,412 | | |
| Net interest income and rate spread | | $110,577 | 3.37% | | $81,323 | 3.11% | | $71,686 | 2.84% |
| Net interest margin | | | 3.98% | | | 3.86% | | | 3.58% |
| Loan purchase accounting accretion | | $4,896 | 0.18% | | $934 | 0.04% | | $1,475 | 0.07% |
| Loan nonaccrual interest | | $780 | 0.03% | | $(383) | (0.02)% | | $(304) | (0.02)% |
* During first quarter 2026, Nicolet reclassified fully reciprocated deposit balances with ICS from brokered deposits to core deposits to be more consistent with the presentation typically used by peer banks. The ICS reciprocal deposits are part of the IntraFi Network Deposits program, which is used by financial institutions to distribute deposits that exceed FDIC insurance coverage limits to numerous institutions in order to provide insurance coverage for all participating deposits. Prior periods have been restated to reflect this change. There was no change to total deposits or the deposit categories.
(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.
| For the Three Months Ended |
|---|
| Nicolet Bankshares, Inc. | | | | | |
| Reconciliation of Non-GAAP Financial Measures (Unaudited) | | | |
| (In thousands, except per share data) | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 |
| Core net income reconciliation: | | | | | |
| Net income (GAAP) | $15,196 | $40,324 | $41,735 | $36,035 | $32,592 |
| Adjustments: | | | | | |
| Provision expense | 4,700 | - | - | - | - |
| Assets (gains) losses, net | 867 | (422) | (1,294) | 199 | 354 |
| Merger-related expense | 40,686 | 1,956 | - | - | - |
| Adjustments subtotal | 46,253 | 1,534 | (1,294) | 199 | 354 |
| Tax on Adjustments | 9,944 | 299 | (252) | 39 | 69 |
| Core net income (non-GAAP) | $51,505 | $41,559 | $40,693 | $36,195 | $32,877 |
| Intangibles amortization, net of tax | $3,215 | $1,041 | $1,138 | $1,192 | $1,249 |
| Core net income (non-GAAP) for tangible common equity ratio | $54,720 | $42,600 | $41,832 | $37,387 | $34,126 |
| Diluted earnings per common share: | | | | | |
| Diluted earnings per common share (GAAP) | $0.81 | $2.65 | $2.73 | $2.34 | $2.08 |
| Core diluted earnings per common share (non-GAAP) | $2.75 | $2.73 | $2.66 | $2.35 | $2.10 |
| Selected Ratios: | | | | | |
| Return on average assets (GAAP) | 0.50% | 1.75% | 1.84% | 1.62% | 1.49% |
| Return on average common equity (GAAP) | 3.44% | 12.96% | 13.86% | 12.21% | 11.21% |
| Return on average tangible common equity (non-GAAP) | 6.49% | 19.27% | 20.98% | 18.72% | 17.34% |
| Core return on average assets (non-GAAP) | 1.68% | 1.80% | 1.80% | 1.63% | 1.51% |
| Core return on average common equity (non-GAAP) | 11.66% | 13.35% | 13.51% | 12.27% | 11.31% |
| Core return on average tangible common equity (non-GAAP) | 19.30% | 19.84% | 20.47% | 18.80% | 17.48% |
| Tangible assets: | | | | | |
| Total assets | $15,574,490 | $9,185,107 | $9,029,430 | $8,930,809 | $8,975,222 |
| Goodwill and other intangibles, net | 967,843 | 382,400 | 383,693 | 385,107 | 386,588 |
| Tangible assets | $14,606,647 | $8,802,707 | $8,645,737 | $8,545,702 | $8,588,634 |
| Tangible common equity: | | | | | |
| Stockholders’ equity (common) | $2,256,877 | $1,257,662 | $1,214,960 | $1,190,098 | $1,183,268 |
| Goodwill and other intangibles, net | 967,843 | 382,400 | 383,693 | 385,107 | 386,588 |
| Tangible common equity | $1,289,034 | $875,262 | $831,267 | $804,991 | $796,680 |
| Tangible average common equity: | | | | |
| Average stockholders’ equity (common) | $1,792,181 | $1,234,619 | $1,194,974 | $1,183,316 | $1,178,868 |
| Average goodwill and other intangibles, net | 642,403 | 382,956 | 384,296 | 385,735 | 387,260 |
| Average tangible common equity | $1,149,778 | $851,663 | $810,678 | $797,581 | $791,608 |
Note: Numbers may not sum due to rounding.
(1)The core 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 provision expense for the ACL on unfunded commitments related to the MidWestOne merger.
(3)Assumes an effective tax rate of 21.5% for 2026 and 19.5% for 2025.
(4)The ratios of core return on average assets and core return on average common equity use core net income as the numerator in place of net income (GAAP). These financial metrics have been included as they provide information useful to investors in understanding the operating performance and trends of Nicolet.
(5)The ratios of tangible book value per common share, return on average tangible common equity, core return on average tangible common equity, and tangible common equity to tangible assets exclude goodwill and other intangibles, net. In addition, the ratios of return on average tangible common equity and core return on average tangible common equity remove the intangibles amortization, net of tax, from the numerator. 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.