| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 59.63 | -59 |
| Intrinsic value (DCF) | 93.36 | -36 |
| Graham-Dodd Method | 78.25 | -46 |
| Graham Formula | 261.00 | 79 |
Nicolet Bankshares, Inc. (NYSE: NIC) is a regional bank holding company headquartered in Green Bay, Wisconsin, operating through its subsidiary Nicolet National Bank. The company provides a comprehensive suite of banking and financial services, including commercial and consumer lending, deposit products, wealth management, and trust services. With 52 branches across Wisconsin and Michigan, Nicolet serves both businesses and individuals, emphasizing personalized banking solutions and digital services like mobile banking and remote deposit capture. The bank focuses on commercial real estate, agricultural lending, and residential mortgages, catering to the economic needs of its regional markets. As a mid-sized financial institution, Nicolet combines community banking agility with modern financial technology, positioning itself as a trusted partner in the Upper Midwest. The company’s strategic acquisitions and organic growth have strengthened its market presence, making it a key player in the regional banking sector.
Nicolet Bankshares presents a stable investment opportunity within the regional banking sector, supported by consistent profitability, a diversified loan portfolio, and a strong presence in Wisconsin and Michigan. The company’s diluted EPS of $8.05 and a dividend yield of ~1.5% (based on a $1.12 annual dividend) reflect solid financial health. However, risks include exposure to regional economic fluctuations, particularly in agriculture and commercial real estate, as well as competitive pressures from larger national banks and fintech disruptors. Investors should monitor net interest margin trends, loan growth, and potential regulatory impacts on regional banks. With a beta of 0.76, NIC offers lower volatility than the broader market, appealing to conservative investors seeking steady returns in the financial sector.
Nicolet Bankshares competes in the crowded regional banking space, where differentiation hinges on customer service, localized expertise, and digital capabilities. Its competitive advantage lies in its deep regional roots, allowing for strong client relationships and niche lending expertise in agriculture and small-business banking. Unlike larger national banks, Nicolet can offer tailored solutions with faster decision-making, though it lacks the scale and resources of mega-banks like JPMorgan Chase. The company’s recent investments in digital banking (e.g., mobile deposits, online lending) help it compete with fintechs and neobanks, but its technology stack may still lag behind larger peers. Its loan portfolio diversification—spanning commercial, agricultural, and residential real estate—mitigates sector-specific risks but exposes it to regional economic downturns. Competitors with broader geographic footprints may have better risk dispersion, while smaller community banks could undercut pricing. Nicolet’s M&A strategy (e.g., past acquisitions like Baylake Corp) strengthens its market share, but integration risks remain.