Nicolet Bankshares (NIC) Financials

Nicolet Bankshares (NYSE: NIC) showed solid profitability in Q1 2026, but the quarter also included some notable one-time pressure and a weaker balance-sheet trend versus late 2025. Earnings remained positive, net interest income improved sequentially, and operating cash flow was healthy. However, profitability fell sharply from the unusually strong Q4 2025, largely because of a large restructuring charge, and deposits declined in the quarter.

What stood out in Q1 2026

• Net income was $15.2 million, with diluted EPS of $0.81, keeping the bank profitable despite higher expenses.
• Net interest income rose to $109.6 million, up from $80.9 million in Q4 2025, showing better core banking revenue momentum.
• Total revenue increased to $134.9 million from $104.0 million in the prior quarter.
• Operating cash flow was $16.3 million, indicating the business continued to generate cash from operations.
• The bank maintained a sizable equity cushion, with total common equity of $2.26 billion on $15.57 billion of assets.
• The allowance for loan losses was $133.4 million, suggesting continued reserving against credit risk.
• Average share count remained relatively stable, and the quarterly dividend stayed at $0.32 per share.
• Intangible assets were still significant at $967.8 million, which is worth watching because it can affect tangible capital quality.
• Non-interest expense jumped to $109.8 million, driven by a $40.7 million restructuring charge.
• Net change in deposits was -$41.5 million, showing deposit outflows in the quarter.

Year-over-year and multi-quarter context

Compared with Q1 2025, Nicolet’s Q1 2026 revenue and earnings were higher, but the balance sheet grew substantially, reflecting a much larger scale after the company’s recent expansion. Total assets rose to $15.6 billion from $9.0 billion a year earlier, and loans and leases net increased to $10.75 billion from $6.68 billion. That suggests the bank is still growing its franchise.

At the same time, the quarterly income statement shows that the business is still sensitive to funding costs and operating expenses. Deposit interest expense climbed to $46.7 million, and the restructuring charge in Q1 2026 materially reduced earnings. That makes the quarter look more like a transition period than a clean run-rate snapshot.

Balance-sheet takeaways

The bank’s deposit base remains large, with $12.62 billion in total deposits at quarter-end, but deposit trends were softer in Q1 2026 than in late 2025. Long-term debt also remained modest at $180.0 million, which is helpful from a leverage standpoint. Still, investors should note that goodwill/intangibles are sizable relative to equity, so tangible capital metrics may be less strong than the headline equity figure suggests.

Bottom line

Nicolet Bankshares remains profitable and continues to produce solid core banking revenue, but Q1 2026 was weighed down by a large restructuring charge and deposit outflows. For retail investors, the key questions from here are whether operating expenses normalize, whether deposit growth reaccelerates, and whether net interest income can keep rising without sacrificing margins.