Nicolet Bankshares, Inc. (NIC) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Nicolet Bankshares, Inc. (NIC) Financial Services Profile

Nicolet Bankshares, Inc., through Nicolet National Bank, delivers comprehensive banking solutions to businesses and individuals across Wisconsin and Michigan. With a focus on commercial and retail banking, wealth management, and trust services, the company leverages its regional presence and diverse product offerings to maintain a competitive edge in the financial services sector.

What Is the Investment Thesis for NIC?

With a market capitalization of $2.94B and a P/E ratio of 18.45, the company exhibits a solid financial foundation. A profit margin of 25.4% and a gross margin of 65.6% indicate efficient operations. Key growth catalysts include expansion of its digital banking services and strategic acquisitions within the Wisconsin and Michigan markets. However, potential risks include exposure to regional economic fluctuations and increasing competition from larger national banks and fintech companies. The company's beta of 0.74 suggests lower volatility compared to the broader market. The dividend yield of 0.87% provides a modest income stream for investors. Successful execution of its growth strategies and effective risk management are crucial for sustained value creation.

Based on FMP financials and quantitative analysis

NIC Key Highlights

Market capitalization of $2.94B, reflecting substantial investor confidence.

• P/E ratio of 18.45, indicating a reasonable valuation compared to earnings.
• Profit margin of 25.4%, showcasing strong operational efficiency.
• Gross margin of 65.6%, demonstrating effective cost management.
• Operates 52 branches throughout Wisconsin and Michigan as of December 31, 2021, providing a strong regional presence.

Who Are NIC's Competitors?

NIC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are NIC's Key Strengths?

Strong regional presence in Wisconsin and Michigan.

• Diverse range of banking products and services.
• Experienced management team.
• Solid financial performance with healthy profit margins.

What Are NIC's Weaknesses?

Limited geographic diversification.

• Reliance on regional economic conditions.
• Smaller scale compared to larger national banks.
• Vulnerability to interest rate fluctuations.

What Could Drive NIC Stock Higher?

Expansion of digital banking platform to attract and retain customers.

• Potential acquisitions of smaller community banks in Wisconsin and Michigan.
• Growth in wealth management services driving fee-based income.
• Increased commercial lending activity supporting loan growth.

What Are the Key Risks for NIC?

Financial-distress signal — its Altman Z-Score of 0.29 sits in the distress zone (elevated bankruptcy risk).

• Economic downturn in Wisconsin and Michigan impacting loan quality.
• Increasing competition from larger national banks and fintech companies.
• Regulatory changes increasing compliance costs.
• Cybersecurity threats and data breaches compromising customer data.

What Are the Growth Opportunities for NIC?

• Expansion of Digital Banking Services: Nicolet can capitalize on the growing demand for digital banking solutions by enhancing its online and mobile platforms. Investing in user-friendly interfaces, secure transaction capabilities, and personalized financial advice can attract and retain tech-savvy customers. The digital banking market is projected to reach $9 trillion in transaction value by 2028, presenting a significant growth opportunity for Nicolet.
• Strategic Acquisitions: Pursuing strategic acquisitions of smaller community banks and credit unions within Wisconsin and Michigan can expand Nicolet's market share and geographic footprint. Integrating acquired entities can lead to cost synergies and revenue enhancements. The M&A activity in the regional banking sector is expected to remain robust, providing opportunities for Nicolet to grow through inorganic means.
• Enhancement of Wealth Management Services: Expanding wealth management services to cater to high-net-worth individuals and families can generate fee-based income and diversify revenue streams. Offering personalized investment advice, retirement planning, and estate planning services can attract affluent clients. The wealth management market is projected to grow at a rate of 7% annually, driven by increasing wealth accumulation.
• Focus on Commercial Lending: Increasing focus on commercial lending to small and medium-sized businesses (SMBs) can drive loan growth and enhance profitability. Offering tailored financing solutions, such as term loans, lines of credit, and equipment financing, can attract SMB clients. The commercial lending market is expected to grow at a rate of 5% annually, fueled by increased business investment.
• Development of Specialized Agricultural Lending Programs: Given its presence in agricultural regions, Nicolet can develop specialized lending programs tailored to the needs of farmers and agricultural businesses. Offering financing for crop production, livestock operations, and farm equipment can attract agricultural clients and support the local economy. The agricultural lending market is expected to grow, driven by increasing demand for food production.

What Are NIC's Competitive Advantages?

• Strong regional presence and brand recognition in Wisconsin and Michigan.
• Established relationships with local businesses and communities.
• Diverse range of banking products and services.
• Experienced management team with deep industry knowledge.

What Does NIC Do?

Nicolet Bankshares, Inc., established in 2000 and headquartered in Green Bay, Wisconsin, serves as the bank holding company for Nicolet National Bank. Originally named Green Bay Financial Corporation, the company rebranded in March 2002 to reflect its evolving strategic direction. Nicolet National Bank provides a comprehensive suite of banking products and services tailored to both businesses and individual customers. These offerings include a variety of deposit accounts such as checking, savings, and money market accounts, as well as certificates of deposit and individual retirement accounts. Beyond deposit services, Nicolet offers a wide array of lending options, including commercial, industrial, and business loans, commercial real estate loans, agricultural production and real estate loans, and construction and land development loans. The bank also provides residential real estate loans, encompassing first and junior lien mortgages, home equity loans, lines of credit, and residential construction loans, alongside consumer loans. Nicolet distinguishes itself through its commitment to providing additional services such as cash management, international banking, personal brokerage, safe deposit boxes, and trust and fiduciary services. Furthermore, the company extends its expertise to wealth management and retirement plan services. Nicolet Bankshares also offers mortgage refinancing and a suite of online services, including commercial, retail, and trust online banking, automated bill payment, mobile banking deposits and account access, and remote deposit capture services. Additional customer conveniences include wire transfers, debit and credit cards, pre-paid gift cards, direct deposits, and official bank checks. As of December 31, 2021, Nicolet operated 52 branches across Wisconsin and Michigan, solidifying its regional presence. The bank also facilitates crop insurance products, adding to its diverse service portfolio.

What Products and Services Does NIC Offer?

• Accepts checking, savings, and money market accounts.
• Offers certificates of deposit and individual retirement accounts.
• Provides commercial loans, including commercial, industrial, and business loans and lines of credit.
• Offers commercial real estate loans and agricultural loans.
• Provides residential real estate loans, including mortgages and home equity products.
• Offers consumer loans and cash management services.
• Provides trust and fiduciary services, as well as wealth management and retirement plan services.
• Offers online and mobile banking services.

How Does NIC Make Money?

• Generates revenue through interest income from loans.
• Earns fee income from services such as wealth management, trust services, and transaction fees.
• Manages risk through diversification of loan portfolio and adherence to regulatory requirements.
• Expands market presence through organic growth and strategic acquisitions.

What Industry Does NIC Operate In?

Nicolet Bankshares operates within the regional banking sector, which is characterized by increasing consolidation and technological disruption. The industry is influenced by factors such as interest rate fluctuations, regulatory changes, and economic growth in local markets. Competition comes from larger national banks, community banks, and emerging fintech companies. Nicolet's focus on personalized service and local market expertise positions it to maintain a competitive edge. The regional banking sector is expected to see moderate growth, driven by increased demand for loans and wealth management services.

Who Are NIC's Key Customers?

• Small and medium-sized businesses (SMBs) in Wisconsin and Michigan.
• Individual consumers seeking personal banking services.
• High-net-worth individuals seeking wealth management services.
• Agricultural businesses and farmers.

Company Profile

Nicolet Bankshares, Inc. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Green Bay, US. The company is led by CEO Michael E. Daniels. NIC has traded publicly since 2013.

Return on equity for Nicolet Bankshares, Inc. stands at 9.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.9%, showing how much profit it generates from its asset base. NIC trades at a trailing price-to-earnings ratio of 18.45, roughly in line with the Financial Services sector average of ~17.50x. Its free cash flow yield is 4.6%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.15 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 5.3%, the inverse of the P/E and a quick read on earnings relative to price.

NIC Valuation & Market Position

With a $2.94B market cap, Nicolet Bankshares, Inc. sits in the mid-cap segment of the market. Analyst price targets span from $194.00 to $194.00, with a consensus of $194.00. At the current price of $170.25, that implies approximately 14% upside potential. Relative to its peer group, NIC's quantitative score of 65/100 is below the peer average of 89/100.

Quarterly Financial Performance: Nicolet Bankshares, Inc.

Revenue for Nicolet Bankshares, Inc. came in at $136.6M during Q2 FY2026, a 33.7% improvement versus the preceding quarter. The company recorded net income of $56.9M, with diluted EPS of $3.74. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Financial Services. Across the four most recent quarters, NIC averaged $2.53 in diluted EPS.

Nicolet Bankshares, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.29 places it in the distress zone, a signal of elevated financial risk.

Nicolet Bankshares, Inc. has beaten Wall Street's EPS estimate in 8 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 8.3% above estimates on average.

Over the past six months, Nicolet Bankshares, Inc. insiders filed 38 SEC Form 4 transactions — 14 sales and 24 purchases. On net that is roughly 4K shares disposed (about $802K), a signal worth weighing alongside the fundamentals.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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