Nicolet Bankshares (NYSE:NIC) stands out among regional peers with 26.2% annual earnings per share growth over the last two years, a pace that outpaced its revenue gains. The Wisconsin-based bank, which also operates in Michigan and Minnesota, has expanded its net interest margin by 69 basis points over the same period. This margin expansion, combined with 24.8% annual net interest income growth over the last five years, suggests the company is gaining market share during the current cycle. Nicolet Bankshares shares trade at $163.94, implying a valuation of 1.4x forward price-to-book.
The broader banking sector has struggled to keep pace with the wider market. Banking stocks have collectively shed 1.3% over the past six months, a stark contrast to the S&P 500's 9.7% ascent during the same period. Investor unease stems from credit quality concerns and potential regulatory changes, weighing on the industry's overall performance.
In this environment, First Financial Bancorp (NASDAQ:FFBC) presents a more cautious outlook. The holding company, which traces its roots to 1863, reported 9.3% annual net interest income growth over the last five years, a figure slower than its banking peers. Earnings growth also lagged the peer group average, with earnings per share increasing by only 9% annually. Looking ahead, estimated tangible book value per share growth of 10.7% for the next 12 months implies that profitability will slow from its two-year trend. First Financial Bancorp trades at $31.41 per share, or 1x forward price-to-book.
Provident Financial Services (NYSE:PFS) faces similar headwinds in unit economics. Founded in 1839 and serving communities in New Jersey, Pennsylvania, and New York, the regional bank reported a net interest margin of 3.4%, one of the lowest among bank companies. Its tangible book value per share remained flat over the last five years, indicating a failure to build equity value during this cycle. Additionally, incremental sales over that five-year period were less profitable, as annual earnings per share growth of 2.1% lagged behind revenue gains. Provident Financial Services shares are priced at $22.20, trading at 1x forward price-to-book.