Nicolet Bankshares Net Income Rises to $57 Million
The company reported core diluted earnings per share of $2.99 for the second quarter.
Nicolet Bankshares (NIC) reported net income of $57 million for the second quarter.
The results followed a period of integration and portfolio adjustment, marked by the acquisition of MidWest One and a subsequent decision to divest specific regional assets.
Net income rose from $15 million in the first quarter and $36 million in the second quarter of the previous year. Core diluted earnings per share increased to $2.99 from $2.75 in the prior quarter.
Net interest income rose 29% to $141 million. The increase resulted from a $43 million rise in interest income, which was offset by an $11 million increase in interest expense. Net interest margin expanded to 4.14% from 3.98% in the first quarter, aided by lower core deposit funding costs and 23 basis points of loan purchase accounting accretion.
Yield on interest-earning assets increased 13 basis points to 5.86%, while the cost of interest-bearing liabilities fell 7 basis points to 2.29%. Noninterest income rose to $36 million, an $11 million increase over the first quarter, driven by gains in card interchange income, service charges, and wealth management fees.
Noninterest expense fell by $6 million to $104 million. A $33 million decrease in merger-related expenses offset a $12 million increase in personnel costs. These shifts contributed to an efficiency ratio of 58.62%, compared to 80.30% in the first quarter.
Asset quality improved as nonperforming assets decreased to $75 million, or 0.49% of total assets, from $79 million and 0.51% in the prior quarter.
Nicolet entered into an agreement on April 21, 2026, to sell its Denver banking branches to Sunwest Bank. The transaction involves approximately $402 million in loans and $388 million in deposits.
The company repurchased 267,310 common shares for $40 million during the quarter and authorized an additional $150 million for future repurchases.