NICOLET BANKSHARES INC

Previous wording

Nicolet Bankshares, Inc. (the “Company” or “Nicolet”) is a bank holding company headquartered in Green Bay, Wisconsin. Nicolet provides a diversified range of traditional banking and wealth management services to individuals and businesses in its market area and through the branch offices of its banking subsidiary, Nicolet National Bank (the “Bank”), primarily in Wisconsin, Michigan, Iowa, and Minnesota. The following discussion is management’s analysis of Nicolet’s consolidated financial condition as of June 30, 2026 and December 31, 2025 and results of operations for the three and six-month periods ended June 30, 2026 and 2025. It should be read in conjunction with our audited consolidated financial statements and related Management’s Discussion and Analysis of Financial Condition and Results of Operations included in Nicolet’s 2025 Annual Report on Form 10-K.

Current wording

Nicolet Bankshares, Inc. (the “Company” or “Nicolet”) is a bank holding company headquartered in Green Bay, Wisconsin. Nicolet provides a diversified range of traditional banking and wealth management services to individuals and businesses in its market area and through the branch offices of its banking subsidiary, Nicolet National Bank (the “Bank”), primarily in Wisconsin, Michigan, Iowa, and Minnesota. The following discussion is management’s analysis of Nicolet’s consolidated financial condition as of September 30, 2026 and December 31, 2025 and results of operations for the three and nine-month periods ended September 30, 2026 and 2025. It should be read in conjunction with our audited consolidated financial statements and related Management’s Discussion and Analysis of Financial Condition and Results of Operations included in Nicolet’s 2025 Annual Report on Form 10-K.

Previous wording

Management believes that the presentation of these non-GAAP financial measures (a) are important metrics used to analyze and evaluate our financial condition and capital strength and provide important supplemental information that contributes to a proper understanding of our operating performance and trends, (b) enables a more complete understanding of factors and trends affecting our business, and (c) allows investors to compare our financial performance to the financial performance of our peers and to evaluate our performance in a manner similar to management, the financial services industry, bank stock analysts, and bank regulators. Management uses non-GAAP measures as follows: in the preparation of our operating budgets, monthly financial performance reporting, and in our presentation to investors of our performance. However, we acknowledge that these non-GAAP financial measures have a number of limitations. Limitations associated with non-GAAP financial measures include the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently. These disclosures should not be considered an alternative to our GAAP results. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures is presented in the table below.

Current wording

Management believes that the presentation of these non-GAAP financial measures (a) are important metrics used to analyze and evaluate our financial condition and capital strength and provide important supplemental information that contributes to a proper understanding of our operating performance and trends, (b) enables a more complete understanding of factors and trends affecting our business, and (c) allows investors to compare our financial performance to the financial performance of our peers and to evaluate our performance in a manner similar to management, the financial services industry, bank stock analysts, and bank regulators. Management uses non-GAAP measures as follows: in the preparation of our operating budgets, monthly financial performance reporting, and in our presentation to investors of our performance. However, we acknowledge that these non-GAAP financial measures have a number of limitations. Limitations associated with non-GAAP financial measures include the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently. These disclosures should not be considered an alternative to our GAAP results. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures is presented in Table 1A below.

Previous wording

Net income was $72 million (or earnings per diluted common share of $3.56) for the six months ended June 30, 2026, compared to net income of $69 million (or earnings per diluted common share of $4.42) for the six months ended June 30, 2025. The majority of the year-over-year fluctuations noted below are attributable to the MidWest One acquisition.

Current wording

Net income was $136 million (or earnings per diluted common share of $6.57) for the nine months ended September 30, 2026, compared to net income of $110 million (or earnings per diluted common share of $7.14) for the nine months ended September 30, 2025. The majority of the year-over-year fluctuations noted below are attributable to the MidWest One acquisition.

Previous wording

•Net interest income was $251 million for the first six months of 2026, up $105 million (72%) over the first six months of 2025, mostly due to the MidWest One acquisition. Interest income grew $129 million, while interest expense increased $24 million between the comparable six-month periods. Net interest margin was 4.07% for the six months ended June 30, 2026, compared to 3.65% for the six months ended June 30, 2025. For additional information regarding net interest income, see “Income Statement Analysis — Net Interest Income.”

Current wording

•Net interest income was $393 million for the first nine months of 2026, up $168 million (74%) over the first nine months of 2025, mostly due to the MidWest One acquisition. Interest income grew $209 million, while interest expense increased $41 million between the comparable nine-month periods. Net interest margin was 4.11% for the nine months ended September 30, 2026, compared to 3.72% for the nine months ended September 30, 2025. For additional information regarding net interest income, see “Income Statement Analysis — Net Interest Income.”

Previous wording

•Noninterest income was $62 million for the six months ended June 30, 2026, $23 million (58%) higher than the comparable period of 2025, with growth in most core noninterest income categories primarily due to the acquisition of MidWest One. For additional information regarding noninterest income, see “Income Statement Analysis — Noninterest Income.”

Current wording

•Noninterest income was $94 million for the nine months ended September 30, 2026, $31 million (50%) higher than the comparable period of 2025, with growth in most core noninterest income categories primarily due to the acquisition of MidWest One. For additional information regarding noninterest income, see “Income Statement Analysis — Noninterest Income.”

Previous wording

•Noninterest expense was $214 million for the six months ended June 30, 2026, an increase of $116 million (119%) over the comparable period of 2025. Personnel costs increased $33 million (60%), while non-personnel expenses combined increased $83 million (197%), primarily due to the acquisition of MidWest One. For additional information regarding noninterest expense, see “Income Statement Analysis — Noninterest Expense.”

Current wording

•Noninterest expense was $305 million for the nine months ended September 30, 2026, an increase of $157 million (106%) over the comparable period of 2025. Personnel costs increased $51 million (60%), while non-personnel expenses combined increased $106 million (169%), primarily due to the acquisition of MidWest One. For additional information regarding noninterest expense, see “Income Statement Analysis — Noninterest Expense.”

Previous wording

•Nonperforming assets were $75 million, and represented 0.49% of total assets at June 30, 2026, compared to $32 million or 0.35% of total assets at December 31, 2025. For additional information regarding nonperforming assets, see “Balance Sheet Analysis – Nonperforming Assets.”

Current wording

•Nonperforming assets were $78 million, and represented 0.52% of total assets at September 30, 2026, compared to $32 million or 0.35% of total assets at December 31, 2025. For additional information regarding nonperforming assets, see “Balance Sheet Analysis – Nonperforming Assets.”

Previous wording

•At June 30, 2026, assets were $15.4 billion, an increase of $6.2 billion (68%) from December 31, 2025, primarily due to the MidWest One acquisition. For additional balance sheet discussion see “Balance Sheet Analysis.”

Current wording

•At September 30, 2026, assets were $15.1 billion, an increase of $5.9 billion (64%) from December 31, 2025, primarily due to the MidWest One acquisition. For additional balance sheet discussion see “Balance Sheet Analysis.”

Previous wording

•At June 30, 2026, loans were $10.8 billion, an increase of $4.0 billion from December 31, 2025, primarily due to the MidWest One acquisition. For additional information regarding loans, see “Balance Sheet Analysis — Loans.”

Current wording

•At September 30, 2026, loans were $10.9 billion, an increase of $4.0 billion from December 31, 2025, primarily due to the MidWest One acquisition. For additional information regarding loans, see “Balance Sheet Analysis — Loans.”

Previous wording

•Total deposits of $12.5 billion at June 30, 2026, increased $4.8 billion from December 31, 2025, primarily due to the MidWest One acquisition. For additional information regarding deposits, see “Balance Sheet Analysis – Deposits.”

Current wording

•Total deposits of $12.6 billion at September 30, 2026, increased $4.9 billion from December 31, 2025, primarily due to the MidWest One acquisition. For additional information regarding deposits, see “Balance Sheet Analysis – Deposits.”

Previous wording

At the beginning of 2025, the Federal Funds range was 4.25% to 4.50%. During the second half of 2025, the Federal Reserve decreased short-term interest rates a total of 75 bps, resulting in a Federal Funds range of 3.50% to 3.75% at December 31, 2025. There were no changes to the Federal Funds range during 2026.

Current wording

At the beginning of 2025, the Federal Funds range was 4.25% to 4.50%. During the second half of 2025, the Federal Reserve decreased short-term interest rates a total of 75 bps, resulting in a Federal Funds range of 3.50% to 3.75% at December 31, 2025. In comparison, the Federal Reserve increased short-term interest rates a total of 25 bps during third quarter 2026, resulting in a Federal Funds range of 3.75% to 4.00% at September 30, 2026.

Previous wording

Tax-equivalent net interest income was $254 million for the six months ended June 30, 2026, an increase of $106 million (72%) over the six months ended June 30, 2025. The $106 million increase in tax-equivalent net interest income was primarily attributable to increased volumes from the MidWest One acquisition, as well as favorable changes in yield and rate. Favorable volume changes and rate changes added $89 million and $18 million, respectively, to net interest income.

Current wording

Tax-equivalent net interest income was $397 million for the nine months ended September 30, 2026, an increase of $170 million (75%) over the nine months ended September 30, 2025. The $170 million increase in tax-equivalent net interest income was primarily attributable to increased volumes from the MidWest One acquisition, as well as favorable changes in yield and rate. Favorable volume and rate changes added $147 million and $23 million, respectively, to net interest income.

Previous wording

Average interest-earning assets increased $4.4 billion (55%) to $12.6 billion over the comparable 2025 period, primarily due to the MidWest One acquisition. Between the comparable six-month periods, average loans increased $3.5 billion (51%), mostly due to the MidWest One acquisition. Average investment securities increased $871 million between the comparable six-month periods, while other interest-earning assets increased $112 million (mostly cash), both primarily due to the MidWest One acquisition. The mix of average interest-earning assets was 82% loans, 14% investments and 4% other interest-earning assets (mostly cash) for first half 2026, compared to 84%, 11%, and 5%, respectively, for first half 2025.

Current wording

Average interest-earning assets increased $4.8 billion (59%) to $12.9 billion over the comparable 2025 period, primarily due to the MidWest One acquisition. Between the comparable nine-month periods, average loans increased $3.7 billion (54%), mostly due to the MidWest One acquisition. Average investment securities increased $975 million between the comparable nine-month periods, while other interest-earning assets increased $106 million (mostly cash), both primarily due to the MidWest One acquisition. The mix of average interest-earning assets was 81% loans, 15% investment securities, and 4% other interest-earning assets (mostly cash) for the first nine months of 2026, compared to 83%, 11%, and 6%, respectively, for the first nine months of 2025.

Previous wording

Average interest-bearing liabilities were $9.4 billion for the first six months of 2026, an increase of $3.4 billion (57%) over the first six months of 2025, primarily due to the MidWest One acquisition. Average interest-bearing core deposits increased $3.5 billion, while average brokered deposits decreased $112 million between the comparable six-month periods. The mix of average interest-bearing liabilities was comprised of 93% core deposits, 5% brokered deposits and 2% wholesale funding for first half 2026, compared to 87%, 10%, and 3% respectively, for first half 2025.

Current wording

Average interest-bearing liabilities were $9.6 billion for the first nine months of 2026, an increase of $3.7 billion (61%) over the first nine months of 2025, primarily due to the MidWest One acquisition. Average interest-bearing core deposits increased $3.8 billion, while average brokered deposits decreased $99 million between the comparable nine-month periods. The mix of average interest-bearing liabilities was comprised of 94% core deposits, 5% brokered deposits and 1% wholesale funding for the first nine months of 2026, compared to 88%, 10%, and 2% respectively, for the first nine months of 2025.

Previous wording

The interest rate spread increased 58 bps between the comparable six-month periods. The loan yield improved 8 bps to 6.23% between the comparable six-month periods, and included the impact of loan purchase accounting accretion as well as the repricing of new and renewed loans. The yield on investment securities increased 77 bps to 3.98%, also impacted by purchase accounting accretion as well as the discount accretion on the early call of a municipal bond, while the yield on other interest-earning assets (mostly cash) decreased 83 bps to 3.74%, consistent with Federal Reserve interest rate cuts. The cost of interest-bearing liabilities decreased 52 bps to 2.32% for the first six months of 2026, mostly due to lower deposit costs. As a result, the tax-equivalent net interest margin was 4.07% for the first six months of 2026, a 42 bps increase over 3.65% for the first six months of 2025.

Current wording

The interest rate spread increased 54 bps between the comparable nine-month periods. The loan yield improved 7 bps to 6.26% between the comparable nine-month periods, and included the impact of loan purchase accounting accretion as well as the repricing of new and renewed loans. The yield on investment securities increased 79 bps to 4.04%, also impacted by purchase accounting accretion as well as the discount accretion on the early call of a municipal bond, while the yield on other interest-earning assets (mostly cash) decreased 83 bps to 3.72%, consistent with Federal Reserve interest rate movements. The cost of interest-bearing liabilities decreased 49 bps to 2.32% for the first nine months of 2026, mostly due to lower deposit costs. As a result, the tax-equivalent net interest margin was 4.11% for the first nine months of 2026, a 39 bps increase over 3.72% for the first nine months of 2025.

Previous wording

The provision for credit losses was $7.6 million for the six months ended June 30, 2026, compared to $2.6 million for the six months ended June 30, 2025. The increase was primarily driven by provision expense of $4.7 million for the ACL on unfunded commitments related to the MidWest Oneacquisition.

Current wording

The provision for credit losses was $9.5 million for the nine months ended September 30, 2026, compared to $3.5 million for the nine months ended September 30, 2025. The increase was primarily driven by provision expense of $4.7 million for the ACL on unfunded commitments related to the MidWest Oneacquisition.

Previous wording

Noninterest income was $62 million for the six months ended June 30, 2026, $23 million (58%) higher than the comparable period of 2025, with growth in most core noninterest income categories primarily due to the acquisition of MidWest One. Noninterest income excluding net asset gains (losses) for the first half of 2026 was $60 million, a $21 million (52%) increase over the first half of 2025.

Current wording

Noninterest income was $94 million for the nine months ended September 30, 2026, $31 million (50%) higher than the comparable period of 2025, with growth in most core noninterest income categories primarily due to the acquisition of MidWest One. Noninterest income excluding net asset gains (losses) for the first nine months of 2026 was $93 million, a $31 million (50%) increase over the first nine months of 2025.

Previous wording

Wealth management fee income was $22 million, up $9 million (62%) from the first six months of 2025, including growth in accounts and assets under management primarily from the MidWest One acquisition, as well as favorable market-related changes.

Current wording

Wealth management fee income was $35 million, up $14 million (63%) from the first nine months of 2025, with growth in accounts and assets under management primarily due to the MidWest One acquisition.

Previous wording

Mortgage income includes net gains received from the sale of residential real estate loans into the secondary market, capitalized mortgage servicing rights (“MSR”), servicing fees net of MSR amortization, fair value marks on the mortgage interest rate lock commitments and forward commitments (“mortgage derivatives”), and MSR valuation changes, if any. Net mortgage income of $7 million increased $2 million (48%) between the comparable six-month periods, mostly due to higher secondary market volumes and the related gains on sales. See also Note 7, “Goodwill and Other Intangibles and Servicing Rights” of the Notes to Unaudited Consolidated Financial Statements under Part I, Item 1, for additional disclosures on the MSR asset.

Current wording

Mortgage income includes net gains received from the sale of residential real estate loans into the secondary market, capitalized mortgage servicing rights (“MSR”), servicing fees net of MSR amortization, fair value marks on the mortgage interest rate lock commitments and forward commitments (“mortgage derivatives”), and MSR valuation changes, if any. Net mortgage income of $11 million increased $2 million (28%) between the comparable nine-month periods, mostly due to higher secondary market volumes and the related gains on sales. See also Note 7, “Goodwill and Other Intangibles and Servicing Rights” of the Notes to Unaudited Consolidated Financial Statements under Part I, Item 1, for additional disclosures on the MSR asset.

Previous wording

Services charges on deposit accounts were $7 million, up $3 million (83%) from the first six months of 2025, on growth in both accounts and account analysis fees, mostly driven by the MidWest One acquisition.

Current wording

Service charges on deposit accounts were $11 million, up $5 million (87%) from the first nine months of 2025, on growth in both accounts and account analysis fees, mostly driven by the MidWest One acquisition.

Previous wording

Card interchange income of $11 million increased $4 million (50%) and BOLI income of $4 million increased $1 million (47%) from the first six months of 2025, both primarily due to the acquisition of MidWest One.

Current wording

Card interchange income of $17 million increased $7 million (61%) and BOLI income of $7 million increased $2 million (46%) from the first nine months of 2025, both primarily due to the acquisition of MidWest One.

Previous wording

Other income of $5 million for the six months ended June 30, 2026 increased $2 million (55%) from the comparable 2025 period, primarily due to the acquisition of MidWest One.

Current wording

Other income of $9 million for the nine months ended September 30, 2026 increased $3 million (56%) from the comparable 2025 period, primarily due to the acquisition of MidWest One.

Previous wording

Net asset gains of $1.5 million for the first six months of 2026 were primarily due to favorable fair value marks on an equity security partly offset by the write-down of an other investment, while net asset losses of $0.6 million for the first six months of 2025 were mostly due to unfavorable fair value marks on equity securities.

Current wording

Net asset gains of $0.9 million for the first nine months of 2026 were primarily due to favorable fair value marks on an equity security partly offset by write-downs on other investments, while net asset gains of $0.7 million for the first nine months of 2025 were mostly due to favorable fair value marks on equity securities.

Previous wording

Noninterest expense was $214 million for the six months ended June 30, 2026, an increase of $116 million (119%) over the comparable period of 2025. Personnel costs increased $33 million (60%), while non-personnel expenses combined increased $83 million (197%), primarily due to the acquisition of MidWest One.

Current wording

Noninterest expense was $305 million for the nine months ended September 30, 2026, an increase of $157 million (106%) over the comparable period of 2025. Personnel costs increased $51 million (60%), while non-personnel expenses combined increased $106 million (169%), primarily due to the acquisition of MidWest One.

Previous wording

Personnel expense was $89 million for the six months ended June 30, 2026, an increase of $33 million (60%) from the comparable period in 2025, reflecting a larger employee base due to the acquisition of MidWest One, as well as merit increases between the years.

Current wording

Personnel expense was $136 million for the nine months ended September 30, 2026, an increase of $51 million (60%) from the comparable period in 2025, reflecting a larger employee base due to the acquisition of MidWest One, as well as merit increases between the years.

Previous wording

Occupancy, equipment and office expense was $29 million for the six months ended June 30, 2026, up $10 million (56%) from the comparable period in 2025, mostly due to an expanded footprint resulting from the acquisition of MidWest One.

Current wording

Occupancy, equipment and office expense was $45 million for the nine months ended September 30, 2026, up $18 million (64%) from the comparable period in 2025, mostly due to an expanded footprint resulting from the acquisition of MidWest One.

Previous wording

Data processing expense was $14 million, up $5 million (51%) between the comparable six-month periods, mostly due to the MidWest One acquisition.

Current wording

Data processing expense was $21 million, up $7 million (52%) between the comparable nine-month periods, mostly due to the MidWest One acquisition.

Previous wording

Intangibles amortization increased $7 million between the comparable six-month periods due to increased amortization on newly established intangibles from the MidWest One acquisition.

Current wording

Intangibles amortization increased $12 million between the comparable nine-month periods due to increased amortization on newly established intangibles from the MidWest One acquisition.

Previous wording

Merger-related expense of $48 million for the six months ended June 30, 2026, primarily included compensation for severance and contract termination charges, as well as legal and professional expenses.

Current wording

Merger-related expense of $53 million for the nine months ended September 30, 2026, primarily included compensation for severance and contract termination charges, as well as legal and professional expenses.

Previous wording

Other expense was $15 million, up $9 million (164%) between the comparable six-month periods, including a $5 million loss on the early redemption of junior subordinated debentures, as well as higher legal and professional expense and higher deposit earnings credit expense.

Current wording

Other expense was $20 million, up $12 million (153%) between the comparable nine-month periods, including a $5 million loss on the early redemption of junior subordinated debentures, as well as higher legal and professional expense and higher deposit earnings credit expense.

Previous wording

Income tax expense was $19 million (effective tax rate of 21.2%) for the first six months of 2026, compared to income tax expense of $16 million (effective tax rate of 19.2%) for the comparable period of 2025.

Current wording

Income tax expense was $37 million (effective tax rate of 21.3%) for the first nine months of 2026, compared to income tax expense of $26 million (effective tax rate of 19.3%) for the comparable period of 2025.

Previous wording

Net income was $57 million for the three months ended June 30, 2026, compared to net income of $36 million for the three months ended June 30, 2025. Earnings per diluted common share was $2.62 for second quarter 2026, compared to $2.34 for second quarter 2025.

Current wording

Net income was $64 million for the three months ended September 30, 2026, compared to net income of $42 million for the three months ended September 30, 2025. Earnings per diluted common share was $2.96 for third quarter 2026, compared to $2.73 for third quarter 2025.

Previous wording

Tax-equivalent net interest income was $143 million for second quarter 2026, an increase of $68 million from second quarter 2025. Interest income increased $84 million over second quarter 2025, while interest expense increased $17 million from second quarter 2025, primarily due to the MidWest One acquisition. Average interest-earning assets increased $5.7 billion between the comparable second quarter periods, while average interest-bearing liabilities increased $4.4 billion, also primarily due to the acquisition of MidWest One. For additional information regarding average balances, net interest income and net interest margin, see “INCOME STATEMENT ANALYSIS — Net Interest Income.”

Current wording

Tax-equivalent net interest income was $144 million for third quarter 2026, an increase of $64 million from third quarter 2025. Interest income increased $81 million over third quarter 2025, while interest expense increased $17 million from third quarter 2025, primarily due to the MidWest One acquisition. Average interest-earning assets increased $5.4 billion between the comparable third quarter periods, while average interest-bearing liabilities increased $4.1 billion, also primarily due to the acquisition of MidWest One. For additional information regarding average balances, net interest income and net interest margin, see “INCOME STATEMENT ANALYSIS — Net Interest Income.”

Previous wording

The net interest margin for second quarter 2026 was 4.14%, up 42 bps compared to 3.72% for second quarter 2025, with a portion of the increase attributable to loan purchase accounting accretion (which added 23 bps and 7 bps to the comparable second quarter periods of 2026 and 2025, respectively). The yield on interest-earning assets of 5.86% increased 4 bps from second quarter 2025, while the cost of funds of 2.29% decreased 57 bps between the comparable quarters.

Current wording

The net interest margin for third quarter 2026 was 4.19%, up 33 bps compared to 3.86% for third quarter 2025, with a portion of the increase attributable to loan purchase accounting accretion (which added 23 bps and 7 bps to the comparable third quarter periods of 2026 and 2025, respectively). The yield on interest-earning assets of 5.88% increased 3 bps from third quarter 2025, while the cost of funds of 2.30% decreased 46 bps between the comparable quarters.

Previous wording

Provision for credit losses was $1.5 million for second quarter 2026, compared to $1.1 million provision for credit losses for second quarter 2025. For additional information regarding the allowance for credit losses-loans and asset quality, see “BALANCE SHEET ANALYSIS — Allowance for Credit Losses - Loans” and “BALANCE SHEET ANALYSIS — Nonperforming Assets.”

Current wording

Provision for credit losses was $2.0 million for third quarter 2026, compared to $1.0 million provision for credit losses for third quarter 2025. For additional information regarding the allowance for credit losses-loans and asset quality, see “BALANCE SHEET ANALYSIS — Allowance for Credit Losses - Loans” and “BALANCE SHEET ANALYSIS — Nonperforming Assets.”

Previous wording

Noninterest income was $36 million for second quarter 2026, an increase of $16 million (76%) from second quarter 2025. Excluding net asset gains (losses), noninterest income was up $13 million (63%), including a $5 million increase in wealth management fee income, a $3 million increase in card interchange income, a $2 million increase in service charges on deposit accounts, and a $1 million increase in net mortgage income, all mostly due to the MidWest One acquisition. For additional information regarding noninterest income, see “INCOME STATEMENT ANALYSIS — Noninterest Income.”

Current wording

Noninterest income was $32 million for third quarter 2026, an increase of $9 million (36%) from third quarter 2025. Excluding net asset gains (losses), noninterest income was up $10 million (47%), including a $5 million increase in wealth management fee income, a $3 million increase in card interchange income, and a $2 million increase in service charges on deposit accounts, all mostly due to the MidWest One acquisition. For additional information regarding noninterest income, see “INCOME STATEMENT ANALYSIS — Noninterest Income.”

Previous wording

Noninterest expense was $104 million for second quarter 2026, an increase of $54 million (108%) from second quarter 2025. Personnel expense increased $21 million, reflecting the larger employee base post-acquisition. Non-personnel expenses increased $32 million, including merger-related expenses of $7 million and a $5 million loss on the early redemption of junior subordinated debentures, as well as higher overall expense for the larger operating base post-acquisition. For additional information regarding noninterest expense, see “INCOME STATEMENT ANALYSIS — Noninterest Expense.”

Current wording

Noninterest expense was $91 million for third quarter 2026, an increase of $41 million (82%) from third quarter 2025. Personnel expense increased $18 million, reflecting the larger employee base post-acquisition. Non-personnel expenses increased $24 million, including merger-related expenses of $5 million, as well as higher overall expense for the larger operating base post-acquisition. For additional information regarding noninterest expense, see “INCOME STATEMENT ANALYSIS — Noninterest Expense.”

Previous wording

Income tax expense was $15.6 million (effective tax rate of 21.5%) for second quarter 2026, compared to $8.7 million (effective tax rate of 19.5%) for second quarter 2025.

Current wording

Income tax expense was $17.5 million (effective tax rate of 21.5%) for third quarter 2026, compared to $10.1 million (effective tax rate of 19.5%) for third quarter 2025.

Previous wording

At June 30, 2026, period end assets were $15.4 billion, an increase of $6.2 billion (68%) from December 31, 2025, primarily due to the MidWest One acquisition. Total loans increased $4.0 billion (59%) from December 31, 2025, across various loan categories primarily due to the MidWest One acquisition. Total deposits were $12.5 billion at June 30, 2026, an increase of $4.8 billion (62%) from December 31, 2025, including a $4.7 billion increase in customer (core) deposits and a $78 million increase in brokered deposits, primarily due to the MidWest One acquisition. Long-term borrowings decreased $42 million from December 31, 2025 due to the early redemption of junior subordinated debentures. Total stockholders’ equity was $2.3 billion at June 30, 2026, an increase of $1.0 billion over December 31, 2025, primarily due to the issuance of common stock in the MidWest One acquisition.

Current wording

At September 30, 2026, period end assets were $15.1 billion, an increase of $5.9 billion (64%) from December 31, 2025, primarily due to the MidWest One acquisition. Total loans increased $4.0 billion (59%) from December 31, 2025, across various loan categories primarily due to the MidWest One acquisition. Total deposits were $12.6 billion at September 30, 2026, an increase of $4.9 billion (63%) from December 31, 2025, including a $4.9 billion increase in customer (core) deposits and a $72 million decrease in brokered deposits, primarily due to the MidWest One acquisition. Long-term borrowings decreased $42 million from December 31, 2025 due to the early redemption of junior subordinated debentures. Total stockholders’ equity was $2.2 billion at September 30, 2026, an increase of $1.0 billion over December 31, 2025, primarily due to the issuance of common stock in the MidWest One acquisition and current earnings, partly offset by common stock repurchases, unfavorable market valuations on the investment portfolio from recent interest rate increases, and the quarterly common stock dividend.

Previous wording

Total loans of $10.8 billion at June 30, 2026, increased $4.0 billion (59%) from December 31, 2025, across various loan categories. At June 30, 2026, commercial and industrial loans and CRE investment loans represented the largest segments of Nicolet’s loan portfolio, with each at 22% of the total portfolio. The next largest segments were agricultural and residential first mortgage, representing 16% and 15% of the total loan portfolio, respectively. The loan portfolio is widely diversified and included the following industries: manufacturing, wholesaling, paper, packaging, food production and processing, agriculture, forest products, hospitality, retail, service, and businesses supporting the general building industry.

Current wording

Total loans of $10.9 billion at September 30, 2026, increased $4.0 billion (59%) from December 31, 2025, across various loan categories, primarily due to the MidWest One acquisition. At September 30, 2026, commercial and industrial loans and CRE investment loans represented the largest segments of Nicolet’s loan portfolio, with each at 21% of the total portfolio. The next largest segment was agricultural, representing 17% of the total loan portfolio. The loan portfolio is widely diversified and included the following industries: manufacturing, wholesaling, paper, packaging, food production and processing, agriculture, forest products, hospitality, retail, service, and businesses supporting the general building industry. The following chart provides the distribution of our loan portfolio at September 30, 2026.