Nicolet Bankshares, Inc. Announces Second Quarter 2026 Earnings

Nicolet Bankshares, Inc. Announces Second Quarter 2026 Earnings GREEN BAY, Wis.--( BUSINESS WIRE)--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.

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.

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.

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

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

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

—

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

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

1.63

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

3.72

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

1.01

1.00

1.23

1.00

Net charge-offs to average loans (1)

0.02

0.04

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.

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

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.

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

(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)

—

780

0.03

(26

)

—

For the Six Months Ended

June 30, 2026

June 30, 2025

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

(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

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

)

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

1.63

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.