0001174850-26-000077
SEC filingNicolet Bankshares, Inc. reported record net income of $150.7 million for FY 2025, a 21.5% increase from $124.1 million in FY 2024. Earnings per diluted common share were $9.78, up from $8.05. The company's profitability was driven by strong net interest income of $306.5 million, a 14.3% year-over-year increase, and total noninterest income of $85.6 million. Total assets grew to $9.19 billion, with loans of $6.84 billion and deposits of $7.73 billion. The company completed the acquisition of MidWest One Financial Group, Inc. on February 13, 2026, which is expected to significantly expand its footprint and scale. Key priorities for 2025 included funding organic growth, share repurchases, increased dividends, and M&A, all of which were accomplished.
Nicolet Bankshares, Inc. delivered strong financial results for FY 2025, with record net income of $150.7 million, representing a 21.5% increase from $124.1 million in FY 2024. Earnings per diluted common share reached $9.78, up from $8.05 in the prior year. The company's total assets grew to $9.19 billion, a 4.4% increase from $8.80 billion at the end of FY 2024. Loans increased 3.2% to $6.84 billion, while deposits grew 4.4% to $7.73 billion. Return on average assets was 1.68% and return on average common equity was 12.58%. The company's performance placed it among the top decile of banks in the country as measured by return on average assets and return on tangible common equity.
Net interest income, the primary revenue source, increased 14.3% to $306.5 million from $268.1 million in FY 2024. This growth was driven by a $32.4 million increase in tax-equivalent net interest income, attributable to favorable volumes ($15.4 million) and favorable rates ($22.8 million). Total interest income grew 7.4% to $470.9 million, while interest expense decreased 3.4% to $164.5 million. The net interest margin expanded 29 basis points to 3.76%. Noninterest income totaled $85.6 million, a 4.0% increase from $82.3 million in the prior year, with growth in wealth management fee income, mortgage income, and service charges on deposit accounts.
The company's operating margin (income before income tax expense as a percentage of total revenue) was 39.7%. Net interest income after provision for credit losses was $302.2 million, representing 64.2% of total revenue. The provision for credit losses was $4.3 million, slightly higher than the $3.9 million in FY 2024. Noninterest expense increased 5.0% to $200.8 million, primarily due to higher personnel costs, which rose 6.4% to $115.3 million. The efficiency ratio (noninterest expense divided by net interest income plus noninterest income) was 51.2%, compared to 54.6% in the prior year, indicating improved operational efficiency.
Net cash provided by operating activities was $153.5 million, driven by net income of $150.7 million and adjustments including depreciation, amortization and accretion of $15.0 million. Net cash used in investing activities was $230.7 million, primarily for purchases of securities available for sale ($140.4 million) and net increase in loans ($206.7 million). Net cash provided by financing activities was $201.4 million, mainly from net increase in deposits ($327.1 million), partially offset by purchase and retirement of common stock ($76.6 million) and cash dividends paid ($18.7 million). The company ended the year with total stockholders' equity of $1.26 billion, representing 13.7% of total assets.
The company completed the acquisition of MidWest One Financial Group, Inc. on February 13, 2026, which will double Nicolet's branch footprint to over 100 locations and expand its presence to Iowa, Western Wisconsin, and the Twin Cities market. The acquisition adds approximately $6 billion in assets, bringing total assets to approximately $15 billion. Management's primary focus for 2026 will be the successful integration of MidWest One, with core system integration planned for late summer 2026. The company expects additional M&A to be unlikely in 2026 as it focuses on integration. The Board will consider share repurchases and increased dividends as capital allocation options, having already begun repurchasing stock in late January 2026 following merger approval.