Key Highlights

  • Core diluted EPS was USD 3.15, versus a USD 3.07 consensus estimate.
  • Net interest margin widened to 4.19% from 4.14% in the second quarter.
  • Core deposits grew USD 223 million, while brokered deposits fell USD 150 million.
  • Nonperforming assets were 0.52% of total assets, up from 0.49%.

Nicolet Bankshares (NYSE:NIC) reported third-quarter results on Oct. 20, with core diluted earnings per share of USD 3.15 against a consensus estimate of USD 3.07. Revenue of USD 174.4 million edged past the USD 173.6 million estimate, a gap of 0.45%. On a GAAP basis, diluted EPS was USD 2.96, with merger-related items reducing earnings by USD 0.19 per share.

Nicolet is the Green Bay, Wisconsin based holding company for Nicolet National Bank, a community bank offering commercial, agricultural and consumer lending along with wealth management and retirement plan services. Branches sit mainly in Wisconsin, Iowa, Michigan and Minnesota.

Earnings and Margin Progress

Net income was USD 64 million, or USD 68 million on a core basis, compared with USD 57 million and USD 65 million in the second quarter. Core EPS of USD 3.15 compared with USD 2.99 in the prior quarter. GAAP EPS was USD 2.73 in the third quarter of 2025.

Net interest income was USD 142 million, up 1% from the second quarter. The net interest margin widened to 4.19% from 4.14%, as asset yields rose 2 bps to 5.88% and the cost of interest-bearing liabilities rose 1 bp to 2.30%. Core return on average tangible common equity was 22%, according to the company.

Integration Milestones and Expenses

The bank completed the core systems conversion tied to its Feb. 13 acquisition of MidWestOne, which added USD 6.1 billion in assets at closing. It also closed the sale of its Denver branches on July 28 and moved both wealth management platforms onto one operating system.

Noninterest expense fell to USD 91 million from USD 104 million, helped by a USD 3 million drop in merger-related costs and a USD 5 million reduction tied to a second quarter loss on redeeming junior subordinated debentures. Noninterest income was USD 32 million, down USD 4 million, mostly on market valuation swings.

CEO Mike Daniels said the quarter showed what the combined company can produce, and that management sees a cleaner fourth quarter ahead.

Balance Sheet, Credit and Capital Returns

Period-end assets were USD 15.1 billion, down USD 350 million from June 30, largely because of the Denver divestiture. Deposits totaled USD 12.6 billion, up USD 73 million, with core deposits up USD 223 million and brokered deposits down USD 150 million. Total capital was USD 2.2 billion, down USD 37 million, reflecting valuation losses on investments, buybacks and dividends.

Nonperforming assets were USD 78 million, or 0.52% of total assets, versus USD 75 million, or 0.49%, at the end of June. The allowance for credit losses on loans was 1.24% of total loans, and net charge-offs were negligible. The bank repurchased USD 40 million of common stock and declared a quarterly dividend of USD 0.36 per share, payable Dec. 15.

Fourth Quarter Items to Watch

The bank has scheduled its fourth quarter and full-year release for Jan. 19, 2027. Markers include the net interest margin after the move to 4.19%, expense levels once merger costs fade, and the trend in nonperforming assets. Core deposit growth and the pace of share repurchases are also worth following.