NIC · Nicolet Bankshares, Inc.

Nicolet Bankshares delivered Q1 2026 results heavily influenced by the February 13 completion of its transformative acquisition of MidWestOne Financial Group, which added $6.1 billion in assets, $4.4 billion in loans, and $5.3 billion in deposits, driving total assets to $15.6 billion from $9.2 billion at year-end 2025. GAAP net income fell to $15 million from $40 million in Q4 2025, with diluted EPS dropping to $0.81 from $2.65, primarily due to $39 million in merger-related expenses that reduced core EPS impact by $1.94 to a core $2.75. Despite integration costs, net interest income surged 35% to $110 million, fueled by higher average interest-earning assets of $11.2 billion (up $2.9 billion), with net interest margin expanding 12 basis points to 3.98% on a 1 basis point yield increase to 5.73% and 25 basis point cost of funds decline to 2.36%. Noninterest income rose modestly to $25 million, offset by $1 million net asset losses, while noninterest expense ballooned to $110 million from personnel and merger costs. Balance sheet growth was robust, with loans up $4.0 billion to $10.9 billion and deposits up $4.9 billion to $12.6 billion; asset quality held steady with nonperforming assets at 0.51% and allowance at 1.23% of loans. Management highlighted disciplined execution, expanded margins, no material book value dilution, and restarted share repurchases alongside a 13% dividend hike to $0.36 per share. A subsequent agreement to divest Denver branches ($390 million loans, $380 million deposits) to Sunwest Bank targets Q3 2026 close, optimizing post-acquisition footprint. Core conversion is slated for late summer to unlock full cost savings and top-decile profitability.