Nicolet Bankshares (NIC) Q1 2026 earnings summary

Executive summary

• Completed the acquisition of MidWestOne on February 13, 2026, issuing 6.6 million shares valued at $1.0 billion, adding $6.1 billion in assets, $4.4 billion in loans, and $5.3 billion in deposits, making the company one of the largest community banks in the Upper Midwest.

• Net income for Q1 2026 was $15 million, down from $40 million in Q4 2025 and $32.6 million in Q1 2025, primarily due to higher merger-related expenses and provision for credit losses.

• Core net income (non-GAAP) was $52 million for Q1 2026, up from $42 million in Q4 2025.

• Announced sale of Denver, Colorado branches acquired in the merger, with $390 million in loans and $380 million in deposits, expected to close in Q3 2026.

• Increased quarterly dividend by 13% to $0.36 per share and restarted share repurchase program.

Financial highlights

• Net interest income rose to $110 million in Q1 2026, up 54% year-over-year and 35% from Q4 2025, with net interest margin increasing 40 bps to 3.98%.

• Noninterest income increased 39% to $25.3 million, led by wealth management and mortgage income.

• Noninterest expense surged to $110 million, up 130% year-over-year and $57 million sequentially, mainly due to $39 million in merger-related costs.

• Provision for credit losses was $6.1 million, up from $1.5 million in Q1 2025, mainly due to the acquisition.

• Diluted EPS was $0.81 (GAAP) and $2.75 (core, non-GAAP) for Q1 2026, down from $2.08 in Q1 2025.

Outlook and guidance

• Core conversion from the MidWestOne integration is scheduled for late summer 2026, with anticipated cost savings and a return to top decile core profitability.

• Management expects continued integration of MidWestOne and ongoing focus on credit quality and capital strength.

• Interest rate environment and economic conditions remain key variables for future performance.

• Sale of Denver branches expected to close in Q3 2026, pending regulatory approval.

• Next earnings release scheduled for July 21, 2026.