Nicolet(US:NIC)2025-02-25 21:17Financial Performance - For the year ended December 31, 2024, Nicolet earned net income of $124 million, translating to $8.05 per diluted common share[14]. - Net income for 2024 was $124 million, with earnings per diluted common share at $8.05, compared to $62 million and $4.08 in 2023, reflecting a significant increase[186]. - Net income (GAAP) for 2024 was $124,059,000, a substantial increase from $61,516,000 in 2023, representing a growth of 102%[196]. - Basic earnings per share (EPS) increased to $8.24 in 2024, up from $4.17 in 2023, reflecting a growth of 97%[196]. - The return on average assets improved to 1.45% in 2024, up from 0.73% in 2023[196]. - Adjusted net income (Non-GAAP) for 2024 was $120,668,000, compared to $101,245,000 in 2023, reflecting a growth of 19%[201]. Asset and Equity Growth - As of December 31, 2024, Nicolet Bankshares, Inc. reported total assets of $8.8 billion, loans of $6.6 billion, deposits of $7.4 billion, and total stockholders' equity of $1.2 billion[14]. - Total assets reached $8,796,795,000 in 2024, compared to $8,468,678,000 in 2023, indicating an increase of 4%[196]. - Stockholders' equity (common) rose to $1,172,898,000 in 2024, compared to $1,039,007,000 in 2023, an increase of 13%[196]. Loan and Deposit Information - Total loans increased to $6,626,584,000 in 2024, up from $6,353,942,000 in 2023, representing a growth of 4%[196]. - Total deposits rose by $206 million (3%) to $7.4 billion, and total stockholders' equity increased by $134 million to $1.2 billion[189]. - Approximately 76% of the company's loan portfolio consisted of commercial-related loans as of December 31, 2024, which may increase credit risk during economic downturns[105]. - Approximately 36% of the company's loans were secured by commercial-based real estate, 14% by agriculture-based real estate, and 23% by residential real estate as of December 31, 2024[140]. Community Engagement and Employee Information - In 2024, Nicolet employees reported almost 18,500 total volunteer hours and donated over $190,000 to the Nicolet Foundation, reflecting community engagement[25]. - Nicolet's employee base consisted of 978 employees as of December 31, 2024, with approximately 64% being women[25]. - The company offers a comprehensive financial benefits package, including a 401(k) plan with a dollar-for-dollar match of employee contributions up to 6%[25]. Regulatory and Compliance Matters - As of December 31, 2024, the Bank satisfied the requirements of "well-capitalized" under the regulatory framework for prompt corrective action[54]. - The Federal Reserve requires bank holding companies to maintain a minimum Tier 1 capital ratio of 6.0% to be considered adequately capitalized[46]. - The company is preparing for examination by the CFPB as it approaches the $10 billion asset threshold, which will affect compliance with federal consumer financial laws[71]. - The company is subject to regulatory restrictions on the amount of dividends it can pay, which may affect its liquidity and ability to declare dividends[149]. Risk Management and Economic Conditions - Economic conditions, including inflation and governmental policies, are expected to adversely affect deposit levels, loan demand, and borrowers' ability to repay loans[95]. - The company’s risk management framework may not effectively mitigate all risks, potentially leading to unexpected losses and regulatory scrutiny[90]. - The company faces risks associated with rising interest rates and inflation, which could adversely affect borrowers' ability to repay loans and the value of collateral[104]. - Deterioration in economic conditions, particularly in primary markets like Wisconsin, Michigan, and Minnesota, could lead to higher credit losses and negatively impact financial results[107]. Strategic Initiatives and Market Position - The company emphasizes competitive pricing, personalized service, and community engagement to differentiate itself in a highly competitive financial services market[28]. - The Bank's strategy includes pursuing acquisitions and organic growth, with a focus on cost and revenue synergies from recent acquisitions[77]. - The company is investing significantly in innovation, particularly in technologies such as artificial intelligence, machine learning, and blockchain, to adapt existing products and develop new services[82]. - The company anticipates a year of optionality in 2025, focusing on organic growth, M&A, share repurchases, and increased dividends[191]. Dividend Information - The Parent Company declared quarterly cash dividends on its common stock of $1.09 per share in 2024 and $0.75 per share in 2023[40]. - In 2024, the Board declared quarterly cash dividends totaling $1.09 per share on common stock, marking the first dividends since inception in 2000[172]. - The Board increased the quarterly dividend by $0.03 per share (12%) in 2024, with further assessments planned for 2025[194]. Technology and Cybersecurity - The Chief Information Security Officer oversees the Information Security Program, which includes risk assessments, incident response, and employee training[162]. - Cybersecurity threats are evolving rapidly, increasing the risk of theft, fraud, and reputational damage due to potential breaches[87]. - The company has not experienced any reportable cybersecurity incidents that materially impacted operations or financial condition[161]. Market and Competitive Landscape - The Bank faces intense competition from various financial service providers, including non-traditional and disruptive service providers, which may affect its market position[75]. - The decline in physical branch utilization necessitates a shift towards enhancing remote banking services and digital platforms to retain customers[81]. - The U.S. banking industry outlook turned bullish post-November 2024 elections, with expectations of increased M&A activity and improved regulatory conditions[185].