Nicolet core earnings reach $68 million as MidWest One conversion closes

Nicolet Bankshares, Inc. reported third-quarter 2026 net income of $64 million, or $2.96 per diluted share, and core net income of $68 million as it completed the MidWest One Financial Group integration and core systems conversion. Net interest margin widened to 4.19% from 4.14% in the second quarter.

Core earnings rose while reported profit carried merger costs

Net income was $63.73 million for the third quarter, which the release rounds to $64 million, against $56.9 million in the second quarter and $41.74 million a year earlier. The reported figure absorbed $4.59 million of merger-related expense, down from $7.4 million in the second quarter and $40.69 million in the first, when the MidWest One acquisition closed. Core net income, which removes merger costs and other non-core items, was $67.79 million, a 4.17% sequential increase, and core diluted earnings per share were $3.15 against $2.99, up 5.35% sequentially and 18.42% from $2.66 a year earlier.

Net interest income was $142.23 million, $1 million higher than the second quarter. The net interest margin widened to 4.19% from 4.14% and 3.86% a year earlier, helped by a 6 bps rise in loan yield to 6.32%, partly offset by a 4 bps decline in investment yield and a 1 bp increase in the cost of interest-bearing liabilities to 2.30%. The margin included 0.23% of loan purchase accounting accretion, against 0.23% in the second quarter and 0.07% a year earlier. Noninterest income fell to $32.2 million from $36.28 million, which the company tied largely to unfavorable market valuations; excluding net asset losses and deferred compensation plan asset market valuations, noninterest income rose $1 million on higher wealth management fee income. Noninterest expense dropped 12.01% to $91.3 million from $103.76 million, mostly because the second quarter carried a $5 million loss on the early redemption of junior subordinated debentures and $3 million more in merger-related expense.

Share count explains the gap between profit and per-share growth

Reported net income rose 52.7% from a year earlier, but diluted earnings per share rose only 8.42%. The difference is the stock issued for MidWest One: common shares outstanding were 20,845,434 at September 30, 2026, against 14,798,895 a year earlier, 40.86% more. The year-earlier quarter predates the February 13, 2026 MidWest One acquisition, so 2026 periods include only partial contributions from the acquired bank. Nicolet also repurchased 236,296 shares for $40.02 million during the quarter.

“Our third quarter results are beginning to show what this combined company can produce,” said Mike Daniels, Chairman, President and CEO. He added that core deposits grew $223 million while the funding mix improved, and that the quarter included the systems conversion, the Denver branch sale and the move of both wealth platforms onto one operating system.

Asset quality held, but the securities book moved against capital

Nonperforming assets were $77.74 million, or 0.52% of total assets, against $75 million and 0.49% at June 30. The allowance for credit losses on loans was $134.78 million, or 1.24% of total loans, versus $133.58 million and 1.23%, and net charge-offs were $754,000.

The softer spot was capital. Accumulated other comprehensive loss widened to $91.17 million from $37 million, which the release attributes to unfavorable market valuations on the investment portfolio from recent interest rate increases. Tangible book value per common share slipped to $61.14 from $62.19 while book value per share was $107.18. Total assets were $15.06 billion, a $350 million decline, largely because the Denver branches were sold on July 28, 2026, and total deposits were $12.6 billion.

The next dated checkpoint is the January release

The 8-K carries the earnings release itself, and the release makes no reference to an analyst call, so the filing supports period-over-period comparison rather than an expectations verdict. Nicolet expects to issue fourth-quarter and full-year 2026 results on January 19, 2027, and the safe-harbor section flags “continued non-core items affecting fourth quarter results” as a risk. The board declared a quarterly dividend of $0.36 per share, payable December 15, 2026, to shareholders of record as of December 1, 2026.