What are Nicolet Bankshares Inc's Business Segments?
Commercial and industrial loans consist primarily of commercial loans to small
businesses and, to a lesser degree, to municipalities within a diverse range of
industries. The credit risk related to commercial and industrial loans is largely
influenced by general economic conditions and the resulting impact on a borrower’s
operations, or on the value of underlying collateral, if any. Commercial and industrial
loans continue to be the largest segment of Nicolet’s portfolio and increased
to 33.6% of the portfolio at year end 2015 compared to 32.7% of the total portfolio
at year end 2014. This continues to be a strong growth area for Nicolet.
Owner-occupied CRE loans increased to 21.1% of loans at year end 2015 compared
to 20.7% of loans at year end 2014. This category primarily consists of loans
within a diverse range of industries secured by business real estate that is occupied
by borrowers who operate their businesses out of the underlying collateral and
who may also have commercial and industrial loans. The credit risk related to
owner-occupied CRE loans is largely influenced by general economic conditions
and the resulting impact on a borrower’s operations, or on the value of
underlying collateral.
Agricultural production and agricultural real estate loans consist of loans secured
by farmland and related farming operations. The credit risk related to agricultural
loans is largely influenced by the prices farmers can get for their production
and/or the underlying value of the farmland.
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