Green Bay-based Nicolet National Bank has announced a definitive agreement to acquire MidWestOne Bank in an all-stock transaction valued at approximately $864 million. The deal marks a significant expansion for Nicolet, extending its presence into Iowa and strengthening its footprint across the upper Midwest.
The merger will create a combined institution with roughly $15 billion in assets, 114 branches, and nearly 1,700 employees. The transaction is expected to close in the first half of 2026, pending regulatory and shareholder approvals.
Key Takeaways
- Nicolet National Bank will acquire MidWestOne Bank in an all-stock deal worth about $864 million.
- The combined bank will hold approximately $15 billion in assets and operate 114 branches.
- This acquisition expands Nicolet's operations into Iowa and adds locations in Minnesota and Colorado.
- No branch closures are anticipated due to the limited overlap in the banks' service areas.
Details of the Acquisition
Under the terms of the agreement, shareholders of MidWestOne Financial Group Inc. will receive 0.3175 shares of Nicolet Bankshares Inc. common stock for each share of MidWestOne they own. This exchange ratio implies a value of approximately $41.37 per MidWestOne share based on recent stock prices.
Upon completion of the merger, former MidWestOne shareholders will own about 30% of the newly combined company. The boards of directors for both holding companies have unanimously approved the deal, which now awaits standard regulatory clearance.
Combined Company at a Glance
- Total Assets: ~$15 billion
- Total Deposits: ~$13.1 billion
- Total Loans: ~$11.3 billion
- Total Branches: 114
- Total Employees: ~1,700
A 'Transformational' Move for Nicolet
Mike Daniels, CEO of Nicolet, described the acquisition as a pivotal moment for the bank, which is celebrating its 25th anniversary. He emphasized that the deal's size and scope are significant, positioning Nicolet for continued growth.
"Across the footprint, they matter to the markets where they operate," Daniels said of MidWestOne. "We fully look forward to serving those markets where MidWestOne has mattered for 90 years."
The acquisition is Nicolet's ninth since 2012 and by far its largest. The combined value of its previous eight acquisitions totaled approximately $1 billion, acquiring $6.7 billion in assets. This single transaction will add roughly $6 billion in assets to Nicolet's balance sheet.
Shared Vision and Culture
Both leaders highlighted a shared corporate culture as a key driver for the merger. Chip Reeves, CEO of MidWestOne, noted a mutual respect and a common approach to community banking that developed over several years of communication with Daniels.
"Mike and I have known one another for the three years I’ve been CEO here and have become big fans of one another’s mindsets for how to build culture in an organization," Reeves stated. "We both see an opportunity in the Midwest and upper Midwest to create something special."
Strategic Expansion and Market Impact
The merger significantly expands Nicolet's geographic reach. While already present in Wisconsin, Michigan, and parts of Minnesota, the deal provides a strong entry into the Iowa market. It also adds to its Minnesota operations and establishes a presence in Denver, Colorado, where MidWestOne operates two branches.
A key benefit for customers is the lack of operational overlap. Because the two banks primarily serve different communities, executives confirmed that no branch closures are planned as a result of the merger.
"There’s no branch consolidation that will occur because of this, so we get to continue to focus on serving our customers as we create this powerful franchise," Reeves explained. All MidWestOne branches are expected to be rebranded under the Nicolet name following the transition.
A History of Growth
MidWestOne Bank was founded in 1934 as Iowa State Bank & Trust Company and has a long history of serving its communities. It became a publicly traded company in 2008 and has grown through a series of its own acquisitions in Iowa and Minnesota. Nicolet has also pursued an aggressive growth-by-acquisition strategy, making this merger a combination of two experienced institutions.
Financial Strength and Future Outlook
The announcement came shortly after Nicolet reported strong third-quarter financial results for 2025. The bank posted a net income of $42 million, a 27% increase compared to the same quarter in the previous year. As of September 30, Nicolet held $9 billion in assets and $7.6 billion in deposits.
Daniels credited the bank's performance to its employees and community focus, stating that the strong results provide significant momentum heading into this major acquisition.
This deal positions the combined entity to be what Daniels calls "the acquirer of choice" in the upper Midwest. With a larger asset base and a broader footprint, the new Nicolet will have enhanced capacity to serve a wider range of customers and compete in a consolidating banking landscape.
