NIC 8-K
Nicolet Bankshares Inc (NIC)
8-K
2026-07-21
For: 2026-07-21
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Added on
July 21, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 21, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices)
(920 ) 430-1400
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||||||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter.)
Emerging Growth Company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition. | ||||
On July 21, 2026, Nicolet Bankshares, Inc. (“Nicolet”) issued a press release (the “Press Release”) announcing its earnings for the quarter ended June 30, 2026. A copy of the Press Release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
Pursuant to General Instruction B.2 of Form 8-K, the information in this Item 2.02 and Exhibit 99.1, is being furnished to the Securities and Exchange Commission and shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section. Furthermore, the information in this Item 2.02 and Exhibit 99.1, shall not be deemed to be incorporated by reference into Nicolet’s filings under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
| Item 7.01 | Regulation FD Disclosure. | ||||
In the Press Release, Nicolet also announced that it had declared a quarterly cash dividend of $0.36 per share on its common stock. The dividend is payable September 15, 2026, to shareholders of record as of September 1, 2026.
| Item 9.01 | Financial Statements and Exhibits. | ||||
| Exhibit No. | Description of Exhibit | |||||||
| 99.1 | ||||||||
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document | |||||||
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: | July 21, 2026 | NICOLET BANKSHARES, INC. | ||||||||||||
| By: | /s/ H. Phillip Moore, Jr. | |||||||||||||
| H. Phillip Moore, Jr. | ||||||||||||||
| Chief Financial Officer | ||||||||||||||
Exhibit 99.1
FOR IMMEDIATE RELEASE
NICOLET BANKSHARES, INC. ANNOUNCES SECOND QUARTER 2026 EARNINGS
•Net income of $57 million ($65 million core*) for second quarter 2026, compared to net income of $15 million ($52 million core*) for first quarter 2026
•Diluted earnings per share of $2.62 ($2.99 core*) for second quarter 2026, compared to $0.81 ($2.75 core*) for first quarter 2026
•Return on average assets of 1.47% for second quarter 2026, and core* return on average assets of 1.69%
•Return on average tangible common equity of 19.07% for second quarter 2026, and core* return on average tangible common equity of 21.59%, with return on average equity of 10.09%
•Repurchased 267,310 common shares for $40 million during second quarter 2026, and authorized $150 million in additional repurchases
•Net interest margin increased to 4.14% for second quarter 2026, benefitting from a full quarter of loan purchase accounting accretion as well as lower core deposit funding costs
* 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, July 21, 2026 - Nicolet Bankshares, Inc. (NYSE: NIC) (“Nicolet”) announced net income of $57 million and earnings per diluted common share of $2.62 for second quarter 2026, compared to net income of $15 million and earnings per diluted common share of $0.81 for first quarter 2026, and net income of $36 million and earnings per diluted common share of $2.34 for second quarter 2025. Net income included certain non-core items, mostly merger-related expenses, that negatively impacted earnings per diluted common share $0.37 for second quarter 2026 and $1.94 for first quarter 2026, resulting in core diluted earnings per common share (non-GAAP) of $2.99 and $2.75, respectively.
“Our second quarter results reflect the strength of the Nicolet model and the disciplined execution of our team,” said Mike Daniels, Chairman, President, and CEO of Nicolet. “Core earnings remained strong, net interest margin expanded, credit quality continued to perform well, allowing us to repurchase stock throughout the quarter, and tangible book value increased. I’m particularly pleased with the progress we’ve made integrating MidWestOne. Throughout the process, our teams have remained focused on serving our clients while executing our integration plan. As we complete our conversion later this summer and begin fully realizing our planned cost savings, we’ll be in a stronger position to restore the high level of profitability and returns that have historically defined Nicolet.”
Daniels added, “From a balance sheet perspective, we continued to improve the composition of both our loan and deposit portfolios during the quarter. While period-end balances were relatively stable, we continue to see a shift toward higher-yielding in-market commercial loans, supported by growth in lower-cost core deposits. This combined with the momentum we’re seeing across our markets and the opportunities we’ve created in Iowa and Minnesota, those trends support continued margin expansion and position us well to deliver solid organic growth through the balance of 2026.”
Nicolet’s financial performance and certain balance sheet line items were impacted by the timing and size of the MidWestOne Financial Group, Inc. (“MidWestOne”) acquisition on February 13, 2026. Certain income statement results, average balances, and related ratios for 2026 include partial contributions from MidWestOne from the acquisition date. At acquisition, MidWestOne added total assets of $6.1 billion, loans of $4.4 billion, and deposits of $5.3 billion.
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Balance Sheet Review
At June 30, 2026, period end assets were $15.4 billion, a decrease of $160 million from March 31, 2026, largely due to lower cash and cash equivalents. Total loans decreased $32 million from March 31, 2026, while investments grew $20 million. Total deposits of $12.5 billion at June 30, 2026, decreased $101 million from March 31, 2026, including a $100 million decrease in brokered deposits and a $1 million decrease in core deposits. Long-term borrowings decreased $87 million from the prior quarter due to the early redemption of junior subordinated debentures. Total capital was $2.3 billion at June 30, 2026, an increase of $15 million over March 31, 2026, with earnings offset by common stock repurchases and the quarterly common stock dividend.
Asset Quality
Nonperforming assets were $75 million and represented 0.49% of total assets at June 30, 2026, compared to $79 million (0.51% of total assets) at March 31, 2026. The allowance for credit losses-loans was $134 million and represented 1.23% of total loans at June 30, 2026, compared to $133 million (or 1.23% of total loans) at March 31, 2026. Asset quality trends remain solid and loan net charge-offs were negligible.
Income Statement Review - Quarter
Net income was $57 million for second quarter 2026, compared to net income of $15 million for first quarter 2026.
Net interest income was $141 million for second quarter 2026, $32 million (29%) higher than first quarter 2026, the net of a $43 million increase in interest income and an $11 million increase in interest expense. Average interest-earning assets of $13.9 billion were up $2.6 billion from first quarter 2026, with higher average loans (up $2.1 billion) and higher average securities (up $567 million), mostly due to the inclusion of a full quarter of MidWestOne balances. Average interest-bearing liabilities of $10.4 billion were up $2.0 billion from first quarter 2026, also attributable to a full quarter of MidWestOne balances.
The net interest margin for second quarter 2026 was 4.14%, compared to 3.98% for first quarter 2026, with a portion of the increase attributable to loan purchase accounting accretion (which added 23 bps and 18 bps to second and first quarter net interest margin, respectively). The yield on interest-earning assets increased 13 bps (to 5.86%), including an 8 bps increase in loan yield (to 6.26%) as well as a higher investment yield from the discount accretion on the early call of a municipal bond and a full quarter of purchase accretion. On the funding side, the cost of interest-bearing liabilities for second quarter 2026 decreased 7 bps (to 2.29%), benefitting from a full quarter of the lower core deposit funding costs from MidWestOne.
Noninterest income was $36 million for second quarter 2026, up $11 million compared to first quarter 2026. Excluding net asset gains (losses), noninterest income was up $8 million, including a $1 million increase in wealth management fee income, a $1 million increase in service charges on deposit accounts, and a $2 million increase in card interchange income, all mostly due to the MidWestOne acquisition. Net asset gains were $2 million for second quarter 2026 (mostly due to favorable market valuations on an equity investment), compared to net asset losses of $1 million for first quarter 2026 (comprised primarily of a write-down on an equity investment).
Noninterest expense was $104 million for second quarter 2026, a $6 million decrease from first quarter 2026, mostly due to a $33 million decrease in merger-related expense offset by a full quarter of MidWestOne expenses. Personnel expense increased $12 million from first quarter 2026, reflecting the larger employee base post-acquisition. Non-personnel expense decreased $18 million from first quarter 2026, and included the decrease in merger-related expense, offset by higher overall expense for a full quarter of the larger operating base and a $5 million loss on the early redemption of junior subordinated debentures.
Sale of Denver Branches
On April 21, 2026, Nicolet National Bank 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, has received regulatory approval, and is expected to close in third quarter 2026, subject to standard closing conditions. As of June 30, 2026, the Denver locations had total loans of approximately $402 million and deposits of approximately $388 million.
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Declaration of Quarterly Cash Dividend to Shareholders
On July 21, 2026, Nicolet’s Board of Directors declared a quarterly cash dividend of $0.36 per share to holders of its common stock. The dividend is payable on September 15, 2026, to shareholders of record as of September 1, 2026.
Next Quarterly Earnings Release
Nicolet expects to issue the third quarter 2026 earnings release on October 20, 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 diluted earnings per common share, core return on average assets, core return on average common equity, return on average tangible common equity, core return on average tangible common equity, tangible book value per common share, and tangible common equity to tangible assets. 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 core conversion of the integration process of the Nicolet/MidWestOne merger and resulting cost savings, the expected return to historic levels of 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; and (3) 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.
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Nicolet Bankshares, Inc. | ||||||||||||||||||||||||||||||||
Consolidated Balance Sheets (Unaudited) | ||||||||||||||||||||||||||||||||
(In thousands, except share data) | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | |||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||
| Cash and due from banks | $ | 153,492 | $ | 123,359 | $ | 107,956 | $ | 94,402 | $ | 129,607 | ||||||||||||||||||||||
| Interest-earning deposits | 311,756 | 492,092 | 552,276 | 379,555 | 293,031 | |||||||||||||||||||||||||||
| Cash and cash equivalents | 465,248 | 615,451 | 660,232 | 473,957 | 422,638 | |||||||||||||||||||||||||||
| Securities available for sale, at fair value | 2,006,963 | 1,986,946 | 859,834 | 861,534 | 849,253 | |||||||||||||||||||||||||||
| Other investments | 116,575 | 99,835 | 63,247 | 61,380 | 59,594 | |||||||||||||||||||||||||||
| Loans held for sale | 19,388 | 16,627 | 13,620 | 11,308 | 9,955 | |||||||||||||||||||||||||||
| Other assets held for sale | 411,348 | 400,443 | — | — | — | |||||||||||||||||||||||||||
| Loans | 10,848,164 | 10,879,694 | 6,836,345 | 6,874,711 | 6,839,141 | |||||||||||||||||||||||||||
| Allowance for credit losses - loans | (133,584) | (133,435) | (68,806) | (68,785) | (68,408) | |||||||||||||||||||||||||||
Loans, net | 10,714,580 | 10,746,259 | 6,767,539 | 6,805,926 | 6,770,733 | |||||||||||||||||||||||||||
| Premises and equipment, net | 189,197 | 187,876 | 120,462 | 121,711 | 123,723 | |||||||||||||||||||||||||||
Bank owned life insurance (“BOLI”) | 296,095 | 293,790 | 192,498 | 190,979 | 189,342 | |||||||||||||||||||||||||||
| Goodwill and other intangibles, net | 961,687 | 967,843 | 382,400 | 383,693 | 385,107 | |||||||||||||||||||||||||||
| Accrued interest receivable and other assets | 233,538 | 259,420 | 125,275 | 118,942 | 120,464 | |||||||||||||||||||||||||||
| Total assets | $ | 15,414,619 | $ | 15,574,490 | $ | 9,185,107 | $ | 9,029,430 | $ | 8,930,809 | ||||||||||||||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 2,717,610 | $ | 2,537,729 | $ | 1,828,928 | $ | 1,826,453 | $ | 1,800,335 | ||||||||||||||||||||||
Interest-bearing deposits | 9,805,726 | 10,086,635 | 5,901,843 | 5,785,012 | 5,741,338 | |||||||||||||||||||||||||||
Total deposits | 12,523,336 | 12,624,364 | 7,730,771 | 7,611,465 | 7,541,673 | |||||||||||||||||||||||||||
| Long-term borrowings | 92,750 | 179,968 | 134,860 | 134,600 | 134,340 | |||||||||||||||||||||||||||
| Other liabilities held for sale | 388,060 | 385,882 | — | — | — | |||||||||||||||||||||||||||
| Accrued interest payable and other liabilities | 138,999 | 127,399 | 61,814 | 68,405 | 64,698 | |||||||||||||||||||||||||||
| Total liabilities | 13,143,145 | 13,317,613 | 7,927,445 | 7,814,470 | 7,740,711 | |||||||||||||||||||||||||||
| Stockholders' Equity: | ||||||||||||||||||||||||||||||||
| Common stock | 211 | 213 | 148 | 148 | 149 | |||||||||||||||||||||||||||
| Additional paid-in capital | 1,552,947 | 1,589,992 | 583,257 | 581,815 | 601,625 | |||||||||||||||||||||||||||
Retained earnings | 755,311 | 706,099 | 697,799 | 662,252 | 625,243 | |||||||||||||||||||||||||||
Accumulated other comprehensive income (loss) | (36,995) | (39,427) | (23,542) | (29,255) | (36,919) | |||||||||||||||||||||||||||
| Total stockholders' equity | 2,271,474 | 2,256,877 | 1,257,662 | 1,214,960 | 1,190,098 | |||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 15,414,619 | $ | 15,574,490 | $ | 9,185,107 | $ | 9,029,430 | $ | 8,930,809 | ||||||||||||||||||||||
| Common shares outstanding | 21,060,762 | 21,316,619 | 14,811,445 | 14,798,895 | 14,924,086 | |||||||||||||||||||||||||||
1
Nicolet Bankshares, Inc. | ||||||||||||||||||||||||||||||||||||||||||||
Consolidated Statements of Income (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||
(In thousands, except per share data) | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | 6/30/2026 | 6/30/2025 | |||||||||||||||||||||||||||||||||||||
| Interest income: | ||||||||||||||||||||||||||||||||||||||||||||
| Loans, including loan fees | $ | 174,705 | $ | 139,784 | $ | 106,579 | $ | 107,930 | $ | 105,976 | $ | 314,489 | $ | 206,642 | ||||||||||||||||||||||||||||||
| Taxable investment securities | 19,305 | 11,955 | 6,294 | 6,201 | 6,027 | 31,260 | 11,587 | |||||||||||||||||||||||||||||||||||||
| Tax-exempt investment securities | 1,692 | 1,358 | 972 | 998 | 1,017 | 3,050 | 2,066 | |||||||||||||||||||||||||||||||||||||
| Other interest income | 5,202 | 5,115 | 6,393 | 5,204 | 4,618 | 10,317 | 10,084 | |||||||||||||||||||||||||||||||||||||
| Total interest income | 200,904 | 158,212 | 120,238 | 120,333 | 117,638 | 359,116 | 230,379 | |||||||||||||||||||||||||||||||||||||
| Interest expense: | ||||||||||||||||||||||||||||||||||||||||||||
| Deposits | 57,321 | 46,656 | 37,622 | 39,312 | 40,472 | 103,977 | 79,937 | |||||||||||||||||||||||||||||||||||||
| Short-term borrowings | — | — | 1 | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Long-term borrowings | 2,112 | 1,997 | 1,721 | 1,757 | 2,057 | 4,109 | 4,127 | |||||||||||||||||||||||||||||||||||||
| Total interest expense | 59,433 | 48,653 | 39,344 | 41,069 | 42,529 | 108,086 | 84,064 | |||||||||||||||||||||||||||||||||||||
| Net interest income | 141,471 | 109,559 | 80,894 | 79,264 | 75,109 | 251,030 | 146,315 | |||||||||||||||||||||||||||||||||||||
Provision for credit losses | 1,500 | 6,050 | 750 | 950 | 1,050 | 7,550 | 2,550 | |||||||||||||||||||||||||||||||||||||
Net interest income after provision for credit losses | 139,971 | 103,509 | 80,144 | 78,314 | 74,059 | 243,480 | 143,765 | |||||||||||||||||||||||||||||||||||||
| Noninterest income: | ||||||||||||||||||||||||||||||||||||||||||||
| Wealth management fee income | 11,738 | 10,655 | 8,196 | 7,629 | 6,811 | 22,393 | 13,786 | |||||||||||||||||||||||||||||||||||||
Mortgage income, net | 3,624 | 3,539 | 3,653 | 3,568 | 2,907 | 7,163 | 4,833 | |||||||||||||||||||||||||||||||||||||
Service charges on deposit accounts | 4,139 | 3,149 | 2,016 | 2,000 | 1,962 | 7,288 | 3,987 | |||||||||||||||||||||||||||||||||||||
Card interchange income | 6,332 | 4,228 | 3,772 | 3,752 | 3,699 | 10,560 | 7,036 | |||||||||||||||||||||||||||||||||||||
BOLI income | 2,305 | 1,882 | 1,857 | 1,654 | 1,429 | 4,187 | 2,849 | |||||||||||||||||||||||||||||||||||||
Asset gains (losses), net | 2,364 | (867) | 422 | 1,294 | (199) | 1,497 | (553) | |||||||||||||||||||||||||||||||||||||
| Deferred compensation plan asset market valuations | 1,947 | (277) | 465 | 972 | 1,437 | 1,670 | 1,482 | |||||||||||||||||||||||||||||||||||||
| LSR income, net | 778 | 711 | 644 | 668 | 950 | 1,489 | 2,007 | |||||||||||||||||||||||||||||||||||||
Other noninterest income | 3,052 | 2,274 | 2,067 | 2,082 | 1,637 | 5,326 | 3,429 | |||||||||||||||||||||||||||||||||||||
Total noninterest income | 36,279 | 25,294 | 23,092 | 23,619 | 20,633 | 61,573 | 38,856 | |||||||||||||||||||||||||||||||||||||
| Noninterest expense: | ||||||||||||||||||||||||||||||||||||||||||||
Personnel expense | 50,612 | 38,159 | 30,233 | 29,437 | 29,114 | 88,771 | 55,635 | |||||||||||||||||||||||||||||||||||||
Occupancy, equipment and office | 16,398 | 12,375 | 9,169 | 9,028 | 9,104 | 28,773 | 18,434 | |||||||||||||||||||||||||||||||||||||
Business development and marketing | 3,184 | 2,337 | 2,093 | 2,223 | 1,593 | 5,521 | 3,693 | |||||||||||||||||||||||||||||||||||||
Data processing | 7,758 | 6,185 | 4,691 | 4,671 | 4,682 | 13,943 | 9,207 | |||||||||||||||||||||||||||||||||||||
Intangibles amortization | 6,156 | 4,096 | 1,293 | 1,414 | 1,481 | 10,252 | 3,033 | |||||||||||||||||||||||||||||||||||||
| FDIC assessments | 1,801 | 1,275 | 1,033 | 1,005 | 1,029 | 3,076 | 1,969 | |||||||||||||||||||||||||||||||||||||
| Merger-related expense | 7,403 | 40,686 | 1,956 | — | — | 48,089 | — | |||||||||||||||||||||||||||||||||||||
Other noninterest expense | 10,452 | 4,682 | 2,571 | 2,310 | 2,916 | 15,134 | 5,735 | |||||||||||||||||||||||||||||||||||||
Total noninterest expense | 103,764 | 109,795 | 53,039 | 50,088 | 49,919 | 213,559 | 97,706 | |||||||||||||||||||||||||||||||||||||
| Income before income tax expense | 72,486 | 19,008 | 50,197 | 51,845 | 44,773 | 91,494 | 84,915 | |||||||||||||||||||||||||||||||||||||
Income tax expense | 15,585 | 3,812 | 9,873 | 10,110 | 8,738 | 19,397 | 16,288 | |||||||||||||||||||||||||||||||||||||
| Net income | $ | 56,901 | $ | 15,196 | $ | 40,324 | $ | 41,735 | $ | 36,035 | $ | 72,097 | $ | 68,627 | ||||||||||||||||||||||||||||||
| Earnings per common share: | ||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 2.68 | $ | 0.83 | $ | 2.72 | $ | 2.81 | $ | 2.40 | $ | 3.65 | $ | 4.53 | ||||||||||||||||||||||||||||||
Diluted | $ | 2.62 | $ | 0.81 | $ | 2.65 | $ | 2.73 | $ | 2.34 | $ | 3.56 | $ | 4.42 | ||||||||||||||||||||||||||||||
| Common shares outstanding: | ||||||||||||||||||||||||||||||||||||||||||||
Basic weighted average | 21,208 | 18,232 | 14,804 | 14,836 | 15,029 | 19,728 | 15,142 | |||||||||||||||||||||||||||||||||||||
Diluted weighted average | 21,729 | 18,749 | 15,227 | 15,303 | 15,431 | 20,246 | 15,538 | |||||||||||||||||||||||||||||||||||||
2
Nicolet Bankshares, Inc. | ||||||||||||||||||||||||||||||||||||||||||||
Consolidated Financial Summary (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||
(In thousands, except share & per share data) | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | 6/30/2026 | 6/30/2025 | |||||||||||||||||||||||||||||||||||||
| Selected Average Balances: | ||||||||||||||||||||||||||||||||||||||||||||
Loans | $ | 11,259,572 | $ | 9,194,624 | $ | 6,858,444 | $ | 6,843,189 | $ | 6,833,236 | $ | 10,232,803 | $ | 6,772,060 | ||||||||||||||||||||||||||||||
Investment securities | 2,046,717 | 1,479,693 | 902,147 | 903,839 | 900,469 | 1,764,771 | 893,280 | |||||||||||||||||||||||||||||||||||||
Interest-earning assets | 13,857,424 | 11,235,506 | 8,381,031 | 8,206,651 | 8,140,178 | 12,553,708 | 8,109,756 | |||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | 553,075 | 576,905 | 634,751 | 480,208 | 423,272 | 564,924 | 460,363 | |||||||||||||||||||||||||||||||||||||
Goodwill and other intangibles, net | 964,140 | 642,403 | 382,956 | 384,296 | 385,735 | 804,160 | 386,494 | |||||||||||||||||||||||||||||||||||||
Total assets | 15,479,444 | 12,429,336 | 9,163,123 | 8,984,344 | 8,909,653 | 13,962,816 | 8,879,698 | |||||||||||||||||||||||||||||||||||||
Deposits | 12,922,613 | 10,386,008 | 7,717,321 | 7,583,986 | 7,504,224 | 11,661,318 | 7,475,325 | |||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities | 10,400,080 | 8,363,619 | 5,989,196 | 5,911,850 | 5,972,117 | 9,387,475 | 5,962,651 | |||||||||||||||||||||||||||||||||||||
| Stockholders’ equity (common) | 2,262,902 | 1,792,181 | 1,234,619 | 1,194,974 | 1,183,316 | 2,028,842 | 1,181,104 | |||||||||||||||||||||||||||||||||||||
Selected Ratios: (1) | ||||||||||||||||||||||||||||||||||||||||||||
| Book value per common share | $ | 107.85 | $ | 105.87 | $ | 84.91 | $ | 82.10 | $ | 79.74 | $ | 107.85 | $ | 79.74 | ||||||||||||||||||||||||||||||
Tangible book value per common share (2) | $ | 62.19 | $ | 60.47 | $ | 59.09 | $ | 56.17 | $ | 53.94 | $ | 62.19 | $ | 53.94 | ||||||||||||||||||||||||||||||
Return on average assets | 1.47 | % | 0.50 | % | 1.75 | % | 1.84 | % | 1.62 | % | 1.04 | % | 1.56 | % | ||||||||||||||||||||||||||||||
Return on average common equity | 10.09 | 3.44 | 12.96 | 13.86 | 12.21 | 7.17 | 11.72 | |||||||||||||||||||||||||||||||||||||
Return on average tangible common equity (2) | 19.07 | 6.49 | 19.27 | 20.98 | 18.72 | 13.20 | 18.04 | |||||||||||||||||||||||||||||||||||||
Core return on average assets (non-GAAP) (2) | 1.69 | 1.68 | 1.80 | 1.80 | 1.63 | 1.68 | 1.57 | |||||||||||||||||||||||||||||||||||||
Core return on average common equity (non-GAAP) (2) | 11.53 | 11.66 | 13.35 | 13.51 | 12.27 | 11.59 | 11.79 | |||||||||||||||||||||||||||||||||||||
Core return on average tangible common equity (non-GAAP) (2) | 21.59 | 19.30 | 19.84 | 20.47 | 18.80 | 20.52 | 18.15 | |||||||||||||||||||||||||||||||||||||
Average equity to average assets | 14.62 | 14.42 | 13.47 | 13.30 | 13.28 | 14.53 | 13.30 | |||||||||||||||||||||||||||||||||||||
Stockholders’ equity to assets | 14.74 | 14.49 | 13.69 | 13.46 | 13.33 | 14.74 | 13.33 | |||||||||||||||||||||||||||||||||||||
Tangible common equity to tangible assets (2) | 9.06 | 8.82 | 9.94 | 9.61 | 9.42 | 9.06 | 9.42 | |||||||||||||||||||||||||||||||||||||
| Net interest margin | 4.14 | 3.98 | 3.86 | 3.86 | 3.72 | 4.07 | 3.65 | |||||||||||||||||||||||||||||||||||||
Efficiency ratio | 58.62 | 80.30 | 51.00 | 49.10 | 51.79 | 68.07 | 52.34 | |||||||||||||||||||||||||||||||||||||
Effective tax rate | 21.50 | 20.05 | 19.67 | 19.50 | 19.52 | 21.20 | 19.18 | |||||||||||||||||||||||||||||||||||||
Selected Asset Quality Information: | ||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual loans | $ | 71,545 | $ | 73,494 | $ | 31,679 | $ | 27,463 | $ | 27,735 | $ | 71,545 | $ | 27,735 | ||||||||||||||||||||||||||||||
Other real estate owned | 3,459 | 5,985 | 667 | 767 | 881 | 3,459 | 881 | |||||||||||||||||||||||||||||||||||||
Nonperforming assets | $ | 75,004 | $ | 79,479 | $ | 32,346 | $ | 28,230 | $ | 28,616 | $ | 75,004 | $ | 28,616 | ||||||||||||||||||||||||||||||
Net loan charge-offs (recoveries) | $ | 651 | $ | 833 | $ | 529 | $ | 573 | $ | 372 | $ | 1,484 | $ | 714 | ||||||||||||||||||||||||||||||
Allowance for credit losses-loans to loans | 1.23 | % | 1.23 | % | 1.01 | % | 1.00 | % | 1.00 | % | 1.23 | % | 1.00 | % | ||||||||||||||||||||||||||||||
Net charge-offs to average loans (1) | 0.02 | 0.04 | 0.03 | 0.03 | 0.02 | 0.03 | 0.02 | |||||||||||||||||||||||||||||||||||||
Nonperforming loans to total loans | 0.66 | 0.68 | 0.46 | 0.40 | 0.41 | 0.66 | 0.41 | |||||||||||||||||||||||||||||||||||||
Nonperforming assets to total assets | 0.49 | 0.51 | 0.35 | 0.31 | 0.32 | 0.49 | 0.32 | |||||||||||||||||||||||||||||||||||||
Stock Repurchase Information: (3) | ||||||||||||||||||||||||||||||||||||||||||||
| Common stock repurchased ($) | $ | 40,242 | $ | 22,401 | $ | — | $ | 20,525 | $ | 29,989 | $ | 62,643 | $ | 56,036 | ||||||||||||||||||||||||||||||
| Common stock repurchased (shares) | 267,310 | 149,499 | — | 155,393 | 257,402 | 416,809 | 490,609 | |||||||||||||||||||||||||||||||||||||
(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.
3
Nicolet Bankshares, Inc. | ||||||||||||||||||||||||||||||||
Consolidated Loan & Deposit Metrics (Unaudited) | ||||||||||||||||||||||||||||||||
(In thousands) | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | |||||||||||||||||||||||||||
| Period End Loan Composition | ||||||||||||||||||||||||||||||||
| Commercial & industrial | $ | 2,350,769 | $ | 2,330,665 | $ | 1,367,522 | $ | 1,415,841 | $ | 1,412,621 | ||||||||||||||||||||||
Owner-occupied commercial real estate (“CRE”) | 1,543,772 | 1,558,995 | 939,587 | 947,390 | 963,278 | |||||||||||||||||||||||||||
| Agricultural | 1,765,864 | 1,759,960 | 1,415,425 | 1,378,070 | 1,346,924 | |||||||||||||||||||||||||||
| Commercial | 5,660,405 | 5,649,620 | 3,722,534 | 3,741,301 | 3,722,823 | |||||||||||||||||||||||||||
| CRE investment | 2,329,696 | 2,378,946 | 1,188,351 | 1,213,301 | 1,231,423 | |||||||||||||||||||||||||||
| Construction & land development | 571,280 | 575,030 | 326,638 | 324,209 | 298,122 | |||||||||||||||||||||||||||
| Commercial real estate | 2,900,976 | 2,953,976 | 1,514,989 | 1,537,510 | 1,529,545 | |||||||||||||||||||||||||||
| Commercial-based loans | 8,561,381 | 8,603,596 | 5,237,523 | 5,278,811 | 5,252,368 | |||||||||||||||||||||||||||
| Residential construction | 139,823 | 144,737 | 95,268 | 92,325 | 88,152 | |||||||||||||||||||||||||||
| Residential first mortgage | 1,584,362 | 1,580,088 | 1,193,683 | 1,199,512 | 1,205,841 | |||||||||||||||||||||||||||
| Residential junior mortgage | 474,964 | 464,395 | 268,188 | 260,167 | 249,406 | |||||||||||||||||||||||||||
Residential real estate | 2,199,149 | 2,189,220 | 1,557,139 | 1,552,004 | 1,543,399 | |||||||||||||||||||||||||||
| Retail & other | 87,634 | 86,878 | 41,683 | 43,896 | 43,374 | |||||||||||||||||||||||||||
| Retail-based loans | 2,286,783 | 2,276,098 | 1,598,822 | 1,595,900 | 1,586,773 | |||||||||||||||||||||||||||
| Total loans | $ | 10,848,164 | $ | 10,879,694 | $ | 6,836,345 | $ | 6,874,711 | $ | 6,839,141 | ||||||||||||||||||||||
| Period End Deposit Composition | ||||||||||||||||||||||||||||||||
Noninterest-bearing demand | $ | 2,717,610 | $ | 2,537,729 | $ | 1,828,928 | $ | 1,826,453 | $ | 1,800,335 | ||||||||||||||||||||||
Interest-bearing demand | 2,221,385 | 2,516,924 | 1,263,276 | 1,104,552 | 1,266,507 | |||||||||||||||||||||||||||
Money market | 3,007,957 | 2,955,846 | 2,056,550 | 2,044,055 | 1,900,639 | |||||||||||||||||||||||||||
| Savings | 1,760,294 | 1,763,204 | 834,520 | 825,683 | 805,300 | |||||||||||||||||||||||||||
| Time | 2,816,090 | 2,850,661 | 1,747,497 | 1,810,722 | 1,768,892 | |||||||||||||||||||||||||||
| Total deposits | $ | 12,523,336 | $ | 12,624,364 | $ | 7,730,771 | $ | 7,611,465 | $ | 7,541,673 | ||||||||||||||||||||||
| Brokered transaction accounts * | $ | 100,000 | $ | 175,000 | $ | 25,000 | $ | 25,000 | $ | 155,000 | ||||||||||||||||||||||
| Brokered time deposits * | 385,080 | 409,922 | 382,116 | 422,516 | 429,303 | |||||||||||||||||||||||||||
| Total brokered deposits * | $ | 485,080 | $ | 584,922 | $ | 407,116 | $ | 447,516 | $ | 584,303 | ||||||||||||||||||||||
| Customer transaction accounts * | $ | 9,607,246 | $ | 9,598,703 | $ | 5,958,274 | $ | 5,775,743 | $ | 5,617,781 | ||||||||||||||||||||||
| Customer time deposits * | 2,431,010 | 2,440,739 | 1,365,381 | 1,388,206 | 1,339,589 | |||||||||||||||||||||||||||
Total customer deposits (core) * | $ | 12,038,256 | $ | 12,039,442 | $ | 7,323,655 | $ | 7,163,949 | $ | 6,957,370 | ||||||||||||||||||||||
* 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.
4
| Nicolet Bankshares, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Interest Income and Net Interest Margin Analysis (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average | Average | Average | Average | Average | Average | |||||||||||||||||||||||||||||||||||||||||||||||||||
| (In thousands) | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||||||||||||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans (1) (2) | $ | 11,259,572 | $ | 175,903 | 6.26 | % | $ | 9,194,624 | $ | 140,412 | 6.18 | % | $ | 6,833,236 | $ | 106,103 | 6.23 | % | ||||||||||||||||||||||||||||||||||||||
Investment securities (2) | 2,046,717 | 21,413 | 4.19 | % | 1,479,693 | 13,703 | 3.71 | % | 900,469 | 7,371 | 3.27 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Other interest-earning assets | 551,135 | 5,202 | 3.78 | % | 561,189 | 5,115 | 3.69 | % | 406,473 | 4,618 | 4.56 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Total interest-earning assets | 13,857,424 | $ | 202,518 | 5.86 | % | 11,235,506 | $ | 159,230 | 5.73 | % | 8,140,178 | $ | 118,092 | 5.82 | % | |||||||||||||||||||||||||||||||||||||||||
| Other assets, net | 1,622,020 | 1,193,830 | 769,475 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 15,479,444 | $ | 12,429,336 | $ | 8,909,653 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing core deposits * | $ | 9,705,296 | $ | 51,905 | 2.15 | % | $ | 7,702,195 | $ | 41,762 | 2.20 | % | $ | 5,167,371 | $ | 33,268 | 2.58 | % | ||||||||||||||||||||||||||||||||||||||
| Brokered deposits * | 535,443 | 5,416 | 4.06 | % | 502,241 | 4,894 | 3.95 | % | 649,132 | 7,204 | 4.45 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing deposits | 10,240,739 | 57,321 | 2.25 | % | 8,204,436 | 46,656 | 2.31 | % | 5,816,503 | 40,472 | 2.79 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Wholesale funding | 159,341 | 2,112 | 5.32 | % | 159,183 | 1,997 | 5.09 | % | 155,614 | 2,057 | 5.30 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 10,400,080 | $ | 59,433 | 2.29 | % | 8,363,619 | $ | 48,653 | 2.36 | % | 5,972,117 | $ | 42,529 | 2.86 | % | |||||||||||||||||||||||||||||||||||||||||
| Noninterest-bearing demand deposits | 2,681,874 | 2,181,572 | 1,687,721 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 134,588 | 91,964 | 66,499 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stockholders' equity | 2,262,902 | 1,792,181 | 1,183,316 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 15,479,444 | $ | 12,429,336 | $ | 8,909,653 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income and rate spread | $ | 143,085 | 3.57 | % | $ | 110,577 | 3.37 | % | $ | 75,563 | 2.96 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Net interest margin | 4.14 | % | 3.98 | % | 3.72 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loan purchase accounting accretion (3) | $ | 7,989 | 0.23 | % | $ | 4,896 | 0.18 | % | $ | 1,475 | 0.07 | % | ||||||||||||||||||||||||||||||||||||||||||||
Loan nonaccrual interest (3) | $ | 97 | — | % | $ | 780 | 0.03 | % | $ | (26) | — | % | ||||||||||||||||||||||||||||||||||||||||||||
| For the Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2026 | June 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average | Average | Average | Average | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In thousands) | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||||||||||||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans (1) (2) | $ | 10,232,803 | $ | 316,315 | 6.23 | % | $ | 6,772,060 | $ | 206,907 | 6.15 | % | ||||||||||||||||||||||||||||||||||||||||||||
Investment securities (2) | 1,764,771 | 35,116 | 3.98 | % | 893,280 | 14,322 | 3.21 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Other interest-earning assets | 556,134 | 10,317 | 3.74 | % | 444,416 | 10,084 | 4.57 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Total interest-earning assets | 12,553,708 | $ | 361,748 | 5.80 | % | 8,109,756 | $ | 231,313 | 5.74 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Other assets, net | 1,409,108 | 769,942 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 13,962,816 | $ | 8,879,698 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing core deposits * | $ | 8,709,279 | $ | 93,667 | 2.17 | % | $ | 5,173,698 | $ | 65,843 | 2.57 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Brokered deposits * | 518,933 | 10,310 | 4.01 | % | 630,617 | 14,094 | 4.51 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing deposits | 9,228,212 | 103,977 | 2.27 | % | 5,804,315 | 79,937 | 2.78 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Wholesale funding | 159,263 | 4,109 | 5.20 | % | 158,336 | 4,127 | 5.26 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 9,387,475 | $ | 108,086 | 2.32 | % | 5,962,651 | $ | 84,064 | 2.84 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest-bearing demand deposits | 2,433,106 | 1,671,010 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 113,393 | 64,933 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stockholders' equity | 2,028,842 | 1,181,104 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 13,962,816 | $ | 8,879,698 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income and rate spread | $ | 253,662 | 3.48 | % | $ | 147,249 | 2.90 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest margin | 4.07 | % | 3.65 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan purchase accounting accretion (3) | $ | 12,885 | 0.21 | % | $ | 2,950 | 0.07 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Loan nonaccrual interest (3) | $ | 877 | 0.01 | % | $ | (330) | (0.01) | % | ||||||||||||||||||||||||||||||||||||||||||||||||
* 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.
5
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) | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | 6/30/2026 | 6/30/2025 | |||||||||||||||||||||||||||||||||||||
Core net income reconciliation: (1) | ||||||||||||||||||||||||||||||||||||||||||||
| Net income (GAAP) | $ | 56,901 | $ | 15,196 | $ | 40,324 | $ | 41,735 | $ | 36,035 | $ | 72,097 | $ | 68,627 | ||||||||||||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||
Provision expense (2) | — | 4,700 | — | — | — | 4,700 | — | |||||||||||||||||||||||||||||||||||||
| Assets (gains) losses, net | (2,364) | 867 | (422) | (1,294) | 199 | (1,497) | 553 | |||||||||||||||||||||||||||||||||||||
| Merger-related expense | 7,403 | 40,686 | 1,956 | — | — | 48,089 | — | |||||||||||||||||||||||||||||||||||||
| Loss on early extinguishment of debt | 5,377 | — | — | — | — | 5,377 | — | |||||||||||||||||||||||||||||||||||||
| Adjustments subtotal | 10,416 | 46,253 | 1,534 | (1,294) | 199 | 56,669 | 553 | |||||||||||||||||||||||||||||||||||||
Tax on Adjustments (3) | 2,239 | 9,944 | 299 | (252) | 39 | 12,184 | 108 | |||||||||||||||||||||||||||||||||||||
| Core net income (non-GAAP) | $ | 65,078 | $ | 51,505 | $ | 41,559 | $ | 40,693 | $ | 36,195 | $ | 116,582 | $ | 69,072 | ||||||||||||||||||||||||||||||
| Intangibles amortization, net of tax | $ | 4,832 | $ | 3,215 | $ | 1,041 | $ | 1,138 | $ | 1,192 | $ | 8,048 | $ | 2,442 | ||||||||||||||||||||||||||||||
| Core net income (non-GAAP) for tangible common equity ratio | $ | 69,910 | $ | 54,720 | $ | 42,600 | $ | 41,832 | $ | 37,387 | $ | 124,630 | $ | 71,514 | ||||||||||||||||||||||||||||||
| Diluted earnings per common share: | ||||||||||||||||||||||||||||||||||||||||||||
| Diluted earnings per common share (GAAP) | $ | 2.62 | $ | 0.81 | $ | 2.65 | $ | 2.73 | $ | 2.34 | $ | 3.56 | $ | 4.42 | ||||||||||||||||||||||||||||||
| Core diluted earnings per common share (non-GAAP) | $ | 2.99 | $ | 2.75 | $ | 2.73 | $ | 2.66 | $ | 2.35 | $ | 5.76 | $ | 4.45 | ||||||||||||||||||||||||||||||
Selected Ratios: (4) | ||||||||||||||||||||||||||||||||||||||||||||
| Return on average assets (GAAP) | 1.47 | % | 0.50 | % | 1.75 | % | 1.84 | % | 1.62 | % | 1.04 | % | 1.56 | % | ||||||||||||||||||||||||||||||
| Return on average common equity (GAAP) | 10.09 | % | 3.44 | % | 12.96 | % | 13.86 | % | 12.21 | % | 7.17 | % | 11.72 | % | ||||||||||||||||||||||||||||||
Return on average tangible common equity (non-GAAP) (5) | 19.07 | % | 6.49 | % | 19.27 | % | 20.98 | % | 18.72 | % | 13.20 | % | 18.04 | % | ||||||||||||||||||||||||||||||
| Core return on average assets (non-GAAP) | 1.69 | % | 1.68 | % | 1.80 | % | 1.80 | % | 1.63 | % | 1.68 | % | 1.57 | % | ||||||||||||||||||||||||||||||
| Core return on average common equity (non-GAAP) | 11.53 | % | 11.66 | % | 13.35 | % | 13.51 | % | 12.27 | % | 11.59 | % | 11.79 | % | ||||||||||||||||||||||||||||||
Core return on average tangible common equity (non-GAAP) (5) | 21.59 | % | 19.30 | % | 19.84 | % | 20.47 | % | 18.80 | % | 20.52 | % | 18.15 | % | ||||||||||||||||||||||||||||||
Tangible assets: (5) | ||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 15,414,619 | $ | 15,574,490 | $ | 9,185,107 | $ | 9,029,430 | $ | 8,930,809 | ||||||||||||||||||||||||||||||||||
| Goodwill and other intangibles, net | 961,687 | 967,843 | 382,400 | 383,693 | 385,107 | |||||||||||||||||||||||||||||||||||||||
| Tangible assets | $ | 14,452,932 | $ | 14,606,647 | $ | 8,802,707 | $ | 8,645,737 | $ | 8,545,702 | ||||||||||||||||||||||||||||||||||
Tangible common equity: (5) | ||||||||||||||||||||||||||||||||||||||||||||
| Stockholders’ equity (common) | $ | 2,271,474 | $ | 2,256,877 | $ | 1,257,662 | $ | 1,214,960 | $ | 1,190,098 | ||||||||||||||||||||||||||||||||||
| Goodwill and other intangibles, net | 961,687 | 967,843 | 382,400 | 383,693 | 385,107 | |||||||||||||||||||||||||||||||||||||||
| Tangible common equity | $ | 1,309,787 | $ | 1,289,034 | $ | 875,262 | $ | 831,267 | $ | 804,991 | ||||||||||||||||||||||||||||||||||
Tangible average common equity: (5) | ||||||||||||||||||||||||||||||||||||||||||||
| Average stockholders’ equity (common) | $ | 2,262,902 | $ | 1,792,181 | $ | 1,234,619 | $ | 1,194,974 | $ | 1,183,316 | $ | 2,028,842 | $ | 1,181,104 | ||||||||||||||||||||||||||||||
| Average goodwill and other intangibles, net | 964,140 | 642,403 | 382,956 | 384,296 | 385,735 | 804,160 | 386,494 | |||||||||||||||||||||||||||||||||||||
| Average tangible common equity | $ | 1,298,762 | $ | 1,149,778 | $ | 851,663 | $ | 810,678 | $ | 797,581 | $ | 1,224,682 | $ | 794,610 | ||||||||||||||||||||||||||||||
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.
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