Nicolet Bankshares Q3 net income rises on lower expenses

Nicolet Bankshares

Tue 21:26

Overview
U.S. community bank's Q3 core adjusted EPS beat analyst expectations
Net income rose to $64 mln, up from $57 mln in prior qtr
Company completed MidWestOne integration, sold Denver branches, and repurchased $40 mln in stock

Outlook
Nicolet expects a cleaner fourth qtr, providing a clearer view of earnings heading into 2027
Company focus remains on growing customer relationships and maintaining discipline on credit and expenses

Result Drivers
NET INTEREST MARGIN - Net interest margin expanded to 4.19% in Q3 from 4.14% in Q2, supported by higher loan yields and a favorable funding mix
EXPENSE REDUCTION - Noninterest expense fell by $13 mln from Q2, reflecting lower personnel costs, reduced merger-related expenses, and lower other noninterest expense
CORE DEPOSIT GROWTH - Core deposits grew by $223 mln, improving the funding mix and offsetting a decline in brokered deposits

Company press release: ID:nBw7qB0jFa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Adjusted EPS
Beat
$3.15
$3.06 (5 Analysts)
Q3 EPS
 
$2.96
 
Q3 Net Income
 
$63.73 mln
 
Q3 Net Interest Income
 
$142.23 mln
 
Q3 Credit Loss Provision
 
$1.95 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for Nicolet Bankshares Inc is $190.00, about 16.9% above its October 19 closing price of $162.58
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 14 three months ago

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Oct 19 - ServisFirst Bancshares Q3 profit jumps on loan growth, wider interest margin 

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)