-- 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, Wis.--(BUSINESS WIRE)--April 21, 2026--
Nicolet Bankshares, Inc. $(NIC)$ ("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 2025, 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
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.
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
Nicolet Bankshares,
Inc.
Consolidated Statements of Income (Unaudited)
---------------------------------------------- ----------- --------- -----------
For the Three Months Ended
------------------------------------------------------------
(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
Nicolet
Bankshares, Inc.
Consolidated Financial Summary (Unaudited)
--------------------------------------------------- -------------- -------------- --------------
For the Three Months Ended
-------------------------------------------------------------------------------
(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:
(1)
Book value per
common share $ 105.87 $ 84.91 $ 82.10 $ 79.74 $ 78.11
Tangible book
value per common
share (2) $ 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 (2) 6.49 19.27 20.98 18.72 17.34
Core return on
average assets
(non-GAAP) (2) 1.68 1.80 1.80 1.63 1.51
Core return on
average common
equity (non-GAAP)
(2) 11.66 13.35 13.51 12.27 11.31
Core return on
average tangible
common equity
(non-GAAP) (2) 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
(2) 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
(1) 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: (3)
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.
Nicolet Bankshares, Inc.
Net Interest Income and Net Interest Margin Analysis (Unaudited)
For the Three Months Ended
----------------------------------------------------------------------------------------------------
March 31, 2026 December 31, 2025 March 31, 2025
-------------------------------- -------------------------------- --------------------------------
Average Average Average Average Average Average
(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
(2) 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
(3) $ 4,896 0.18% $ 934 0.04% $ 1,475 0.07%
Loan nonaccrual
interest (3) $ 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.
Nicolet
Bankshares,
Inc.
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
-------------------------------------------------- -------------- -------------- --------------
For the Three Months Ended
-------------------------------------------------------------------------------
(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:
(1)
Net income (GAAP) $ 15,196 $ 40,324 $ 41,735 $ 36,035 $ 32,592
Adjustments:
Provision
expense (2) 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 (3) 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:
(4)
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) (5) 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) (5) 19.30% 19.84% 20.47% 18.80% 17.48%
Tangible assets:
(5)
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: (5)
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:
(5)
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260421530305/en/
CONTACT:
ir@nicoletbank.com
(END) Dow Jones Newswires
April 21, 2026 16:15 ET (20:15 GMT)
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