Nicolet Bankshares, Inc. reported first‑quarter 2026 results for the quarter ended March 31, 2026, with net income of $15.2 million and a GAAP diluted earnings per share of $0.81. Core diluted earnings per share—excluding one‑time merger costs—stood at $2.75, while total revenue reached $134.9 million and net interest income was $135.9 million.
The results represent a sharp decline in GAAP net income from $33 million and $2.08 EPS in the same quarter of 2025, but core earnings rose from $2.10 in Q1 2025. Revenue beat the consensus estimate of $146.3 million by $5.04 million, driven by steady demand in the bank’s core retail and commercial segments. The GAAP miss of $2.17 per share reflects $40.7 million in non‑interest merger‑related expenses that were recorded in the quarter.
Merger integration costs are the primary driver of the GAAP earnings shortfall. The $40.7 million in non‑interest expense, combined with a jump in the efficiency ratio to 80.30% from 51.00% in Q4 2025, illustrates the short‑term cost drag. At the same time, the net interest margin expanded to 3.98% from 3.86% in the prior quarter, a gain driven by lower funding costs and a stable asset yield profile. These margin improvements underpin the strong core earnings performance.
Management highlighted the progress of the MidWestOne acquisition, noting that “this quarter reflects disciplined execution through a period of transformational growth.” The company also increased its quarterly dividend by 13% to $0.36 per share and announced the sale of its Denver branch portfolio, a $390 million loan and $380 million deposit transaction expected to close in Q3 2026.
Analysts had raised their earnings and revenue estimates in the weeks leading up to the release, with a consensus GAAP EPS estimate of $2.98 and a revenue estimate of $146.3 million. Nicolet’s core EPS beat the estimate by $0.40 and revenue beat the estimate by $5.04 million, while GAAP EPS missed the estimate by $2.17. The market viewed the NIM expansion and the continued integration of MidWestOne as positive signs of long‑term value creation, despite the short‑term impact of merger costs.
The company did not issue new forward guidance in the release, but management expressed confidence in maintaining core earnings momentum and in the eventual realization of the strategic benefits from the MidWestOne acquisition.
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