Nicolet Bankshares Inc. has announced it will acquire MidWestOne Financial Group Inc. in an all-stock transaction valued at approximately $864 million.
Under the merger agreement, which has been unanimously approved by both boards of directors, MidWestOne shareholders will receive 0.3175 shares of Nicolet common stock for each share of MidWestOne common stock they own. Based on Nicolet’s Oct. 22 closing stock price of $130.31, the deal values MidWestOne at $41.37 per share.
According to a news release, the combined company will have pro forma total assets of $15.3 billion, deposits of $13.1 billion and loans of $11.3 billion as of Sept. 30. The merged entity will operate more than 110 branches across the Upper Midwest, Denver and Naples, Florida.
“We are excited to announce the acquisition of MidWestOne and welcome their employees, customers and shareholders to Nicolet,” said Mike Daniels, chairman, president and CEO of Nicolet in a statement. “We view the people at MidWestOne as true kindred spirits in our approach to serving customers, communities and employees.”
MidWestOne CEO Chip Reeves called the deal “an incredibly strategically compelling combination” that will create one of the top-performing community banks in the region.
“This combined company of Nicolet and MidWestOne, one coming together will be a top decile performer” in return on average assets and return on average tangible common equity among banks with $10 billion to $20 billion in assets, Mr. Reeves said in an interview with the CBJ.
The transaction features no branch overlap between the two banks, meaning no branch consolidations are planned. Reeves and MidWestOne CFO Barry Ray will join Nicolet’s executive management team following the merger.
The combined wealth management operations will oversee approximately $9 billion in assets under management, with MidWestOne contributing $3.4 billion and Nicolet bringing $5.5 billion.
“From the roots of the Summerwill family 90 years ago here in Iowa City to now being part of a $15 billion preeminent bank across the Midwest, it’s a pretty compelling story,” Mr. Reeves said.
Upon completion, MidWestOne shareholders will own approximately 30% of the combined company. The combined board will consist of eight members from Nicolet’s current board, including Daniels, and four members from MidWestOne’s board.
The transaction is expected to close in the first half of 2026, pending regulatory approvals and shareholder approval from both companies. Systems conversion will likely occur in third quarter 2026, when the MidWestOne brand will transition to the Nicolet brand.
Green Bay-based Nicolet Bankshares trades on the New York Stock Exchange under the symbol NIC. Iowa City-based MidWestOne Financial trades on the Nasdaq Global Select Market under the symbol MOFG.
