Nicolet Bankshares Inc Liquidation Value

Nicolet Bankshares (NIC) closed Q1 2026 with total assets of $15.6B, up $6.4B (70%) from December 31, 2025, entirely driven by the acquisition of MidWestOne Financial Group which closed during the quarter. Under a liquidation lens, the recovery posture is dominated by three structural features: a large goodwill and intangibles stack, a predominantly real-estate and commercial loan book that is recoverable at a discount to face, and deposit liabilities that stand at face value in liquidation.

On the asset side, loans net of ACL are $10.75B, the single largest recoverable asset. With 79% commercial-based (C&I, owner-occupied CRE, agricultural, CRE investment, construction), a blended recovery assumption of 80-85 cents on the dollar is reasonable given collateral backing, but nonperforming assets jumped to $79M (0.51% of assets, up from 0.35% at year-end 2025) and potential problem loans surged to $184M from $71M, both acquisition-driven. Available-for-sale securities of $1.99B carry $58M of gross unrealized losses on an amortized cost of $2.04B—approximately 97 cents on the dollar in a distressed sale. The investment portfolio has no ACL and no credit impairment tagged. Goodwill of $835M and other intangibles totaling approximately $133M (IntangibleAssetsNetIncludingGoodwill of $968M less goodwill) are zero in liquidation; the $467M goodwill acquired from MidWestOne this quarter is the primary driver of the increase. BOLI of $294M receives a modest discount. PP&E of $188M is recoverable at 50-70 cents. The MFFAIS CLV/LLV/OLV of $445M is consistent with equity book value of $2.26B haircut for goodwill/intangibles ($968M at zero) and AFS unrealized losses absorbed through AOCI.

On the liability side, deposits of $12.62B stand at face. Estimated uninsured deposits are $4.4B (35% of total), an increase from $2.5B at year-end driven by the acquisition; these are a higher-priority risk in a runoff scenario. Long-term debt is $180M at face. Short-term borrowings are zero. The ACL increased from $69M to $133M ($64M acquired on MidWestOne PCD/PSL loans). The company also implemented a new CECL model for loan loss estimation in Q1 2026, adding modest model-change uncertainty. Regulatory capital ratios remain above well-capitalized thresholds (CET1 10.7%, Tier 1 leverage 11.8% at the company level) but compressed from 12.0% CET1 and 10.7% leverage at year-end 2025 due to risk-weighted asset growth from the acquisition. The acquisition added $1.03B of common stock issuance. AOCI is -$39M.