NIC Stock Forecast & Price Target

Nicolet Bankshares Inc demonstrated a strong financial performance, with an increase in pre-provision net revenue (PPNR) of over 9% quarter-over-quarter, reaching $46.5 million, which exceeded previous estimates due to improved net interest income and stronger fee income despite rising expenses. The bank also achieved notable metrics with a return on assets (ROA) of 1.62% and a return on tangible common equity (ROTCE) exceeding 18%, contributing to a nearly 7% rise in share price during the trading session. Looking ahead, growth prospects remain positive as the bank is expected to benefit from higher core margins driven by continued asset repricing, effective earning asset remixes, and steady loan growth.

Nicolet Bankshares demonstrated a decline in total deposits by 2% on a last quarter annualized (LQA) basis, attributed to significant decreases in money market accounts (8% decline) and time deposits (20% decline), despite an increase in demand deposits and savings. Additionally, the non-performing assets (NPAs) to loans/other real estate owned ratio remained low at 42 basis points, indicating potential vulnerabilities in loan performance that may not fully capture future risks. The company's earnings outlook is further challenged by primary risks including unexpected increases in credit costs, reduced loan demand, and ongoing pressure on profit margins.