Nicolet Bankshares Reports Strong Q3 2025 Financial Performance and Announces Merger with MidWestOne

Nicolet Bankshares, Inc. reported a strong financial performance for the third quarter of 2025, with net income reaching $41.7 million, or $2.73 per diluted share, compared to $32.5 million, or $2.10 per diluted share, in the same period last year. For the nine months ended September 30, 2025, net income totaled $110.4 million, reflecting a 23% increase from $89.6 million in the prior year. The company's net interest income for the third quarter was $79.3 million, up from $68.4 million a year earlier, driven by a 15% increase in interest income, which rose to $120.3 million, primarily due to solid loan growth and improved yields.

In terms of significant changes, total assets increased by $233 million, or 3%, to $9.0 billion since December 31, 2024. This growth was largely attributed to a $248 million increase in loans, which reached $6.9 billion, with notable contributions from commercial and industrial loans. Total deposits also rose by $208 million, or 3%, to $7.6 billion, with core deposits increasing by $353 million, offset by a decline in brokered deposits. The allowance for credit losses on loans stood at $68.8 million, representing 1.00% of total loans, consistent with the previous year.

Strategically, Nicolet announced a definitive merger agreement with MidWestOne Financial Group, Inc. on October 23, 2025. Under the terms of the agreement, MidWestOne will merge into Nicolet in an all-stock transaction, with the merger expected to close in the first half of 2026, subject to regulatory and stockholder approvals. MidWestOne reported total assets of $6.2 billion and loans of $4.4 billion as of September 30, 2025, which will enhance Nicolet's market presence and operational scale.

Operationally, the company reported a total of 14,798,920 shares of common stock outstanding as of October 30, 2025. The average full-time equivalent employee count increased to 972, reflecting a 2% rise from the previous year. Nonperforming assets decreased to $28 million, or 0.31% of total assets, down from $29 million at the end of 2024, indicating improved asset quality. The company’s return on average assets was 1.84%, and return on average common equity was 13.86% for the third quarter of 2025.

Looking ahead, Nicolet remains optimistic about its growth trajectory, bolstered by the upcoming merger with MidWestOne and continued focus on expanding its loan portfolio and deposit base. The company anticipates that the merger will provide significant opportunities for operational synergies and enhanced service offerings, positioning it for sustained profitability in the competitive banking landscape.