Nicolet Bankshares (NIC) investor relations material

Executive summary

• Net income for Q2 2026 was $56.9 million ($65.1 million adjusted/core), with diluted EPS of $2.62 ($2.99 adjusted/core), ROAA of 1.47% (1.69% adjusted/core), and ROATCE of 19.07% (21.59% adjusted/core).

• For the first half of 2026, net income was $72 million, up from $69 million year-over-year, reflecting the impact of the MidWestOne acquisition.

• The MidWestOne acquisition, completed in February 2026, added $6.6 billion in assets and $4.0 billion in loans, making the company one of the largest community banks in the Upper Midwest.

• Asset quality remained strong, with NPAs/assets at 0.49% and net charge-offs at 0.02–0.03%.

• Repurchased $40.2 million in shares in Q2 2026, with board authorizing an additional $150 million for repurchases.

Financial highlights

• Net interest income for Q2 2026 was $141.5 million, up 29% sequentially and 88.4% year-over-year; for the first half of 2026, it was $251 million, up 72% year-over-year.

• Net interest margin rose to 4.14% in Q2 2026, up 16bps sequentially and 42bps year-over-year.

• Noninterest income for Q2 2026 was $36.3 million, up 43.4% sequentially and 75.8% year-over-year; for the first half, it was $62 million, up 58%.

• Loans ended Q2 2026 at $11.25 billion, deposits at $12.91 billion, and assets at $15.42 billion, all up over 64% year-over-year due to the MidWestOne merger.

• Noninterest expense increased due to merger-related costs, but efficiency ratio improved to 58.62% in Q2 2026.

Outlook and guidance

• Management expects continued integration of MidWestOne to drive further revenue and efficiency gains, with margin expansion and organic growth through 2026.

• Net interest margin expected to benefit from a high proportion of fixed-rate loans in a higher-for-longer rate environment.

• Loan and core deposit growth was muted in Q2 2026 as balance sheet optimization followed the merger.

• Sale of Denver branches (approx. $402 million in loans, $388 million in deposits) expected to close in Q3 2026.

• 2026 capital priorities include organic loan growth, share repurchases, and dividends; future M&A unlikely until 2027 or later.