Nicolet Bankshares in Green Bay, Wis., has agreed to buy MidWestOne Financial Group in Iowa City.
The $9.5 billion-asset Nicolet said in a press release that it will pay $864 million in stock for the $6.2 billion-asset MidWestOne. The deal, which is expected to close in the first half of next year, priced MidWestOne at 166% of its tangible book value.
“We view the people at MidWestOne as true kindred spirits in our approach to serving customers, communities, and employees,” Mike Daniels, Nicolet’s chairman, president, and CEO, said in the release. “They have been stalwarts of the community for over 90 years, and we intend to be great stewards of that legacy.”
The deal is expected to be 37% accretive to Nicolet’s 2026 earnings and “mildly dilutive” to tangible book value with a “negligible earnback period.”
Nicolet plans to cut a quarter of MidWestOne’s annual operating expenses. Nicolet expects to incur $60 million of merger-related expenses.
Four MidWestOne directors will join Nicolet’s board.
Keefe, Bruyette & Woods and Nelson Mullins Riley & Scarborough advised Nicolet. Piper Sandler and Alston & Bird advised MidWestOne.