FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-37700 NICOLET BANKSHARES, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________ (920) 430-1400 (Exact Name of Registrant as Specified in its Charter) Wisconsin 47-08 ...

The ICBK Story Q2 2020 NASDAQ: ICBK investors.icbk.com COUNTY bancorp, inc. Parent company of Investors Community Bank Forward Looking Statements EXCEPT AS OTHERWISE INDICATED, THIS PRESENTATION SPEAKS AS OF THE DATE HEREOF.THE DELIVERY OF THIS PRESENTATION SHALL NOT, UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF COUNTY BANCORP, INC. ("THE COMPANY") AFTER THE DATE HEREOF. THIS PRESENTATION CONTAINS FORWARD-LOOKING STATEMENTS. IN SOME CASES, FORWARD-LOOKING S ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________ FORM 10-Q ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-37700 NICOLET BANKSHARES, INC. (Exact Name of Registrant as Specified in its Charter) WISCONSIN (State or Other Juris ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from…………to…………. Commission file number 001-37700 NICOLET BANKSHARES, INC. (Exact name of registrant as specified in its charter) WISCONSIN 47-0871001 (State or other jurisdiction of ...

Financial Performance & Strategy - County Bancorp achieved a record year of net income in 2019 [7] - The company aims for a loan growth of 4% and client deposit growth of 5% in 2020 [38] - The company plans to shift cash to investments/BOLI (Bank-Owned Life Insurance) [38] - The company projects an 8% growth in loans serviced [38] - The company intends to invest in technology and data in 2020 [36] Asset Quality & Risk Management - The company's adverse asset coverage ratio improved to under 40% [7] - Two classified loans totaling $10.2 million were moved to nonaccrual status [8] - Watch and Worse Rated Loans totaled $311.329 thousand as of 12/31/19 [12] - The company's total assets were $1.4 billion as of December 31, 2019 [42] Lending & Funding - Total loans and loans serviced amounted to $1.8 billion [42] - Client Deposits accounted for 32.7% of the funding composition [103]

PART I FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Nicolet Bankshares, Inc. as of September 30, 2019, including balance sheets, income statements, and cash flows [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$3.11 billion** driven by higher net loans, while liabilities decreased and equity grew to **$428.7 million** Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2019 (Unaudited) | Dec 31, 2018 (Audited) | | :--- | :--- | :--- | | **Total Assets** | **$3,105,671** | **$3,096,535** | | Cash and cash equivalents | $143,969 | $249,526 | | Loans, net | $2,229,311 | $2,153,028 | | **Total Liabilities** | **$2,676,929** | **$2,709,183** | | Total deposits | $2,584,447 | $2,614,138 | | Long-term borrowings | $57,495 | $77,305 | | **Total Stockholders' Equity** | **$428,742** | **$387,352** | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Net income for the nine months ended September 30, 2019, significantly increased to **$42.3 million**, driven by higher net interest and noninterest income, with diluted EPS rising to **$4.36** Income Statement Summary (in thousands, except per share data) | Metric | Nine Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2018 | | :--- | :--- | :--- | | Net Interest Income | $85,609 | $79,619 | | Provision for loan losses | $900 | $1,360 | | Total Noninterest Income | $40,058 | $29,712 | | Total Noninterest Expense | $71,373 | $68,137 | | **Net Income Attributable to Nicolet** | **$42,346** | **$30,173** | | **Diluted EPS** | **$4.36** | **$3.02** | Q3 Income Statement Summary (in thousands, except per share data) | Metric | Three Months Ended Sep 30, 2019 | Three Months Ended Sep 30, 2018 | | :--- | :--- | :--- | | Net Interest Income | $29,190 | $26,942 | | Total Noninterest Income | $12,312 | $10,649 | | **Net Income Attributable to Nicolet** | **$13,530** | **$10,859** | | **Diluted EPS** | **$1.40** | **$1.09** | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents decreased by **$105.6 million** for the nine months ended September 30, 2019, primarily due to net cash used in investing and financing activities Cash Flow Summary (in thousands) | Activity | Nine Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2018 | | :--- | :--- | :--- | | Net cash from Operating Activities | $36,505 | $40,553 | | Net cash from Investing Activities | ($77,003) | ($68,295) | | Net cash from Financing Activities | ($65,059) | $33,964 | | **Net (decrease) increase in cash** | **($105,557)** | **$6,222** | | Cash at beginning of period | $249,526 | $154,933 | | **Cash at end of period** | **$143,969** | **$161,155** | [Notes to Unaudited Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section details financial statement notes, including the pending Choice Bancorp acquisition, loan portfolio analysis, and new lease accounting standard adoption - The company adopted ASU 2016-02, Leases (Topic 842), on January 1, 2019, which resulted in the recognition of a right-of-use (ROU) asset and a lease liability of approximately **$5 million**, with no impact on the income statement or cash flows[31](index=31&type=chunk)[32](index=32&type=chunk) - On June 26, 2019, Nicolet entered into a merger agreement with Choice Bancorp, Inc., which received all regulatory approvals by September 17, 2019, and is expected to close on November 8, 2019, with Choice having total assets of **$436 million** at September 30, 2019[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance for the nine months ended September 30, 2019, highlighting net income growth, asset quality, and key balance sheet trends - Net income for the first nine months of 2019 was **$42.3 million**, a **40% increase** from **$30.2 million** in the prior year period, with diluted EPS rising **44% to $4.36**[142](index=142&type=chunk) - A significant contributor to 2019 income was the sale of **80%** of an equity investment in UFS, LLC, which resulted in a **$7.4 million** after-tax gain, partially offset by a **$2.0 million** after-tax cost for retirement-related compensation[144](index=144&type=chunk) - Asset quality remains strong, with nonperforming assets at **0.34%** of total assets as of September 30, 2019[144](index=144&type=chunk) [Net Interest Income](index=40&type=section&id=Net%20Interest%20Income) Tax-equivalent net interest income increased to **$86.4 million** for the first nine months of 2019, expanding the net interest margin to **4.17%** due to favorable loan volumes and rates Net Interest Margin Analysis (Nine Months Ended Sep 30) | Metric | 2019 | 2018 | | :--- | :--- | :--- | | Tax-Equivalent Net Interest Income | $86,395 thousand | $80,491 thousand | | Average Interest-Earning Assets | $2,733,870 thousand | $2,664,081 thousand | | Yield on Earning Assets | 4.99% | 4.67% | | Cost of Interest-Bearing Liabilities | 1.17% | 0.92% | | **Net Interest Margin** | **4.17%** | **3.99%** | [Provision for Loan Losses](index=45&type=section&id=Provision%20for%20Loan%20Losses) The provision for loan losses decreased to **$0.9 million** for the nine months ended September 30, 2019, reflecting strong asset quality, with the ALLL at **0.61%** of total loans - Provision for loan losses for the first nine months of 2019 was **$0.9 million**, compared to **$1.4 million** for the same period in 2018[159](index=159&type=chunk) [Noninterest Income](index=46&type=section&id=Noninterest%20Income) Noninterest income increased by **35% to $40.1 million** for the first nine months of 2019, driven by an equity investment gain and higher net mortgage income Noninterest Income Breakdown (in thousands) | Category | Nine Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2018 | % Change | | :--- | :--- | :--- | :--- | | Mortgage income, net | $6,962 | $4,510 | 54% | | Brokerage fee income | $5,925 | $5,074 | 17% | | Card interchange income | $4,815 | $4,082 | 18% | | Asset gains (losses), net | $8,030 | $1,322 | N/M | | **Total Noninterest Income** | **$40,058** | **$29,712** | **35%** | [Noninterest Expense](index=47&type=section&id=Noninterest%20Expense) Noninterest expense rose **5% to $71.4 million** for the first nine months of 2019, primarily due to increased personnel costs, including one-time retirement-related compensation - Personnel expense increased by **$2.7 million (7%)** year-over-year, with **$2.75 million** of the increase attributable to one-time retirement-related compensation actions in Q2 2019[169](index=169&type=chunk) - Intangibles amortization decreased by **$0.4 million (12%)** due to the aging of intangibles from previous acquisitions[172](index=172&type=chunk) [BALANCE SHEET ANALYSIS](index=48&type=section&id=BALANCE%20SHEET%20ANALYSIS) As of September 30, 2019, total assets were **$3.1 billion**, with strong loan growth to **$2.2 billion**, and stockholders' equity increased to **$428 million** Loan Composition (in thousands) | Loan Category | Sep 30, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | Commercial-based loans | $1,713,143 | $1,639,593 | | Retail-based loans | $529,788 | $526,588 | | **Total loans** | **$2,242,931** | **$2,166,181** | Deposit Composition (in thousands) | Deposit Category | Sep 30, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | Noninterest-bearing demand | $782,968 | $753,065 | | Money market & interest-bearing demand | $1,079,233 | $1,163,369 | | Savings | $329,122 | $294,068 | | Time | $393,124 | $403,636 | | **Total deposits** | **$2,584,447** | **$2,614,138** | Nonperforming Assets (in thousands) | Metric | Sep 30, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | Total nonperforming loans | $9,238 | $5,471 | | Total OREO | $1,325 | $420 | | **Total nonperforming assets** | **$10,563** | **$5,891** | | Nonperforming assets to total assets | 0.34% | 0.19% | [Capital](index=54&type=section&id=Capital) The company maintained strong capital levels, exceeding 'well-capitalized' thresholds, with the Tier 1 leverage ratio improving to **11.3%**, and repurchased **$15.3 million** in common stock Company Regulatory Capital Ratios | Ratio | Sep 30, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | Common equity tier 1 capital ratio | 11.4% | 10.7% | | Tier 1 capital ratio | 12.6% | 11.9% | | Total capital ratio | 13.5% | 12.9% | | Tier 1 leverage ratio | 11.3% | 10.4% | - The company repurchased **263,053 shares** for **$15.3 million** during the first nine months of 2019, with **$24.4 million** remaining authorized under the repurchase program as of September 30, 2019[220](index=220&type=chunk) [Future Accounting Pronouncements](index=55&type=section&id=Future%20Accounting%20Pronouncements) The company is preparing to adopt the CECL standard on January 1, 2020, anticipating a material impact and an estimated **40-60%** increase to aggregate reserve levels - The company will adopt the new CECL standard (ASU 2016-13) on January 1, 2020[225](index=225&type=chunk) - Nicolet estimates a **40-60%** increase to its aggregate reserve levels upon adoption of CECL, though this estimate is subject to change based on economic conditions and portfolio changes by the adoption date[225](index=225&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=56&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is asset-sensitive, projecting a **1.0%** increase in net interest income in a **+100 bps** rate scenario and a **1.2%** decrease in a **-100 bps** scenario Interest Rate Sensitivity Analysis (Projected Change in NII over 1 year) | Rate Change Scenario | Impact as of Sep 30, 2019 | | :--- | :--- | | +200 bps | +2.1% | | +100 bps | +1.0% | | -100 bps | -1.2% | | -200 bps | -2.3% | [Controls and Procedures](index=56&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of September 30, 2019, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of September 30, 2019[227](index=227&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=56&type=section&id=Item%201.%20Legal%20Proceedings) The company and its subsidiaries are not currently involved in any material legal proceedings that would adversely affect financial condition or operations - There are no material legal proceedings currently underway[230](index=230&type=chunk) [Risk Factors](index=56&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2018 were reported - No material changes to risk factors were reported[231](index=231&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=56&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2019, the company repurchased **14,771 shares** at an average price of **$63.57** per share, including **9,300 shares** under its publicly announced program Common Stock Purchases (Q3 2019) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | July 2019 | 5,057 | $63.98 | | August 2019 | 7,447 | $61.99 | | September 2019 | 2,267 | $67.81 | | **Total Q3** | **14,771** | **$63.57** |

Financial Data and Key Metrics Changes - The adverse asset coverage ratio improved to 45.67% this quarter, attributed to rising milk prices, which are now in the $16 to $18 range compared to $15 to $16 a year ago [4][7] - A credit of $1.2 million was booked to the provision for loan losses this quarter due to a decrease in loans rated substandard and special mention [6] - Client deposits grew by $90 million this quarter, while wholesale funding decreased by $97 million [13][14] Business Line Data and Key Metrics Changes - Loan servicing income grew to $1.7 million this quarter, with an increase in loan sold and serviced by $41 million [13] - The net interest margin increased due to rising loan yields and flattening funding costs, although slight margin compression is expected in Q4 [15][16] Market Data and Key Metrics Changes - Stability in Wisconsin farmland values continues to positively impact the strength of the credit portfolio [8] - The bank is optimistic about the dairy sector, with most dairy farmers operating profitably at current milk price levels [32][60] Company Strategy and Development Direction - The company is updating its capital plan and considering a stock buyback plan for 2020, contingent on positive trends in milk prices and the adverse asset coverage ratio [9] - The focus remains on relationship lending and profitable pricing, with a target loan growth rate of 4% to 5% [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the dairy market, anticipating that if milk prices remain stable, the classified asset levels could improve significantly [32][76] - The management noted challenges due to adverse weather affecting harvests but remains hopeful for a successful crop completion [44] Other Important Information - The bank is undergoing an update to its stress testing model to enhance risk management and capital planning [95][96] - The recent regulatory exam was reported to have gone well, with positive feedback on credit management and asset coverage ratios [40][41] Q&A Session Summary Question: What are the expected expenses for the final quarter of the year? - Management indicated that employee compensation and benefits could increase by about $500,000, leading to an expense level of around $8.2 million to $8.3 million for Q4 [21][23] Question: What is the outlook for net interest margin? - Management expects a potential compression of 1% to 2% in the net interest margin due to loan yield pressures and ongoing rate cuts [26][27] Question: How did the recent regulatory exam go? - The exam was reported to have gone well, with positive feedback on credit management and asset coverage ratios [40][41] Question: What is the breakeven price level for milk? - The breakeven price level for farmers is estimated to be around $16 to $16.5 [90] Question: What are the key elements for considering a stock buyback? - The decision for a stock buyback will depend on maintaining milk prices and achieving a classified ratio under 50% for two consecutive quarters [71][72]

FORM 10-Q ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-37700 NICOLET BANKSHARES, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________ (Exact Name of Registrant as Specified in its Charter) WISCONSIN (State or Other Jurisd ...

For the transition period from to UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________ Commission file number: 001-37700 FORM 10-Q ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 NICOLET BANKSHARES, INC. (Exact Name of Registrant as Specified in its Charter) WISCONSIN (State or Other Juris ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from…………to…………. Commission file number 001-37700 NICOLET BANKSHARES, INC. (Exact name of registrant as specified in its charter) WISCONSIN 47-0871001 (State or other jurisdiction of ...