NIC Stock Forecast & Price Target

Nicolet Bankshares Inc. has demonstrated robust financial performance with a 9% quarter-over-quarter increase in pre-provision net revenue (PPNR), reaching $46.5 million, driven by stronger net interest income (NII) and fee income, despite higher expenses. This growth has yielded a solid return on assets (ROA) of 1.62% and a return on tangible common equity (ROTCE) exceeding 18%, contributing to investor confidence as indicated by a nearly 7% rise in share price during the recent trading session. Furthermore, the company's outlook remains positive, as the core margin is expected to improve through ongoing asset repricing, asset remixing, and consistent loan growth in subsequent quarters.

Nicolet Bankshares has exhibited a concerning trend with end-of-period total deposits declining by 2% on a last quarter annualized (LQA) basis, despite an increase in demand deposits and savings. This decline was driven primarily by significant reductions in money market and NOW accounts (down 8% LQA) and time deposits, which experienced a steep drop of 20% LQA. Furthermore, potential risks affecting earnings include the likelihood of increased credit costs, reduced loan demand, and ongoing margin pressure, all of which contribute to a negative outlook for the bank's financial performance.