Nicolet Bankshares (NIC) Q3 2025 earnings summary

Executive summary

• Reported Q3 2025 net income of $41.7M, diluted EPS of $2.73, ROAA of 1.84%, and ROATCE of 20.42%.

• Net income for the nine months ended September 30, 2025, was $110M, up from $90M in the prior year period.

• Announced $864M acquisition of MidWestOne Financial Group, expected to close in H1 2026, expanding presence across four Midwest states.

• Loans and core deposits grew at annualized rates of 2% and 13%, respectively, in Q3.

• Retention agreement with CEO Mike Daniels through 2030.

Financial highlights

• Net interest income rose 5.5% sequentially and 15.9% year-over-year to $79.3M in Q3; $226M for the first nine months, up 15% year-over-year.

• Noninterest income increased 14.5% sequentially and 5.5% year-over-year to $23.6M in Q3; $62.5M for the first nine months, up 2% year-over-year.

• Net interest margin improved by 14bps for the second consecutive quarter, reaching 3.86%.

• Wealth revenues rebounded, up 12% from prior quarter and 8% year-over-year.

• Noninterest expense was $50M in Q3, up slightly due to higher personnel costs; $147.8M for the first nine months, up 3%.

Outlook and guidance

• Pro forma for the MidWestOne merger, assets will exceed $15B, with top-tier profitability metrics expected.

• Transaction expected to be ~37% accretive to fully-phased 2026E GAAP EPS, with a short tangible book value earnback period.

• Estimated fully-phased 2026E ROATCE of ~23% and ROAA of ~1.8%.

• The merger is expected to enhance scale and market presence, with anticipated cost savings and growth opportunities.

• Management expects continued focus on organic loan and deposit growth, with attention to integration risks and market conditions.