Nicolet Bankshares : NIC 3Q'23 Investor Presentation

Investor Presentation

3Q 2023

Securities Legend

Forward Looking Statements "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995

Certain statements contained in this communication, which are not statements of historical fact, constitute forward-looking statements within the meaning of the federal securities law. Such statements include, but are not limited to, statements about Nicolet's business plans, objectives, expectations and intentions, all of which are subject to numerous assumptions, risks and uncertainties. Words or phrases such as "anticipate," "believe," "aim," "can," "conclude," "continue," "could," "estimate," "expect," "foresee," "goal," "intend," "may," "might," "outlook," "possible," "plan," "predict," "project," "potential," "seek," "should," "target," "will," "will likely," "would," or the negative of these terms or other comparable terminology, as well as similar expressions, are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.

Forward-looking statements are not historical facts but instead express only management's beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management's control. It is possible that actual results and outcomes may differ, possibly materially, from the anticipated results or outcomes indicated in these forward-looking statements. Please refer to Nicolet's 2022 Annual Report on Form 10-K, as well as its other filings with the SEC, for a more detailed discussion of risks, uncertainties and factors that could cause actual results to differ from those discussed in the forward-looking statements.

All forward-looking statements included in this communication are made as of the date hereof and are based on information available to management at that time. Except as required by law, Nicolet does not assume any obligation to update any forward-looking statement to reflect events or circumstances that occur after the date the forward-looking statements were made.

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Company Profile

Real People. Real Conversations.

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Overview of Nicolet Bankshares, Inc.

Company Overview

Financial Highlights(1)

• Founded in 2000, and has quickly grown to become the second largest bank headquartered in Wisconsin
• Full-servicecommunity bank serving northern Wisconsin and Michigan and Eastern Minnesota, including the MSAs of Green Bay, the Fox Cities, and Eau Claire in Wisconsin; Marquette, Alpena, and Traverse City in Michigan; and the southwest suburbs of the Twin Cities
• Commercial focus (C&I and owner-occupied CRE) with ag specialty, all funded by a stable core deposit franchise
• Three Circle Philosophy of Shared Success: "We are a relationship-focused organization delivering exceptional service throughout our communities, focusing on sustained value creation for customers, employees, and shareholders."

$ in millions		2020	2021	2022	3Q'23 YTD
Total Assets		$4,552	$7,695	$8,764	$8,416
Total Loans		$2,789	$4,622	$6,180	$6,239
Total Deposits		$3,910	$6,466	$7,179	$7,182
Total Equity		$539	$892	$973	$974
(2)		1.47%	1.39%	1.27%	1.16%
Adjusted ROAA
Adjusted ROATCE	(2)	17.46%	17.81%	18.89%	17.04%
NIM		3.38%	3.37%	3.40%	3.07%
Efficiency Ratio		51.72%	58.20%	54.15%	59.16%
NPA/Assets		0.29%	0.73%	0.46%	0.37%
NCO/Avg Loans		0.05%	0.01%	0.01%	0.01%

Primary Business Lines

History of Growth(3)

	Commercial		Wealth		Mortgage
	& Ag Banking		Management
•	Founded as a	•	Provides wealth and	•	$2.7 billion+ and over
	commercially-		asset management		10,000 loans closed
	focused bank since		services to individuals		between 2020 and
	2000, offering a full		and businesses		YTD 2023
	suite of products and	•	Offered wealth	•	$1.6 billion mortgage
	services for
		services since 2002		servicing portfolio(3)
	businesses
•	56 branch locations	•	Team of 85+ wealth	•	Unique non-
	advisors and support		commission based
•	Entrepreneurial		staff across entire		compensation
	philosophy provides		branch footprint		structure allows for
	an attractive platform	•	Total AUM (trust/RIA)		greater operating
	for talented bankers		leverage with
		of $4.7 billion(3)
				additional volumes

Assets

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

3Q'2023

(1)	Source: S&P Global Market Intelligence / Company Reports	4
(2)	Adjusted ROAA and ROATCE are non-GAAP calculations, and remove certain merger related costs, assets gains/losses, and other unplanned items. See Appendix for reconciliation to reported GAAP results
(3)	Source: Company Reports; data as of September 30, 2023; shaded area includes past acquisitions

The Upper Midwest's Leading Community Bank The Upper Midwest's Leading Community Bank

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Commercial-Focused Community Banking Model

Commercial-Focused Community Banking Model

Founded as a commercial bank, Nicolet's focus on C&I and owner-occupied CRE lending has

remained strong, while the addition of the ag portfolio in 2021 provided greater portfolio diversity

Period End Loan Trend*		Loan Mix at 9/30/23 - $6.24 billion

	$6,000
	$5,000
													$2,832		$2,922
millions)	$4,000
									$1,998
in	$3,000
												$1,089		$1,108
($
$2,000				$1,176		$1,221		$795
		$951
					$95		$110
					$89
														$2,259		$2,209
	$1,000
										$1,805
					$1,126		$1,303		$1,272
	$0
	2018	2019	2020		2021	2022		3Q'2023
			Commercial Loans (C&I + OOCRE)			Agricultural			All Other Loans

Construction &	CRE (Owner Occ),	C&I,
Other, $0.40B,	$0.97B, 16%
$1.24B,
6%
	20%
Other,		CRE
$0.06B, 1%
	(Investment),
		$1.13B, 18%
	Ag, $1.11B,
	18%
	Residential RE,
	$1.33B, 21%

Commercial Lines Outstanding and Usage

$700	40%	40%						45%
							40%
$600
			31%	33%		35%
bars							line
						29% 30%-
$500			27%
$400
						(%)
-							25%
$($M)300
							20%
$200								Usage
Usage								15%
$298	$317	$218	$333	$464	$392	10%
Line$0	0%
$100								5%Line
	Dec-18	Dec-19	Dec-20	Dec-21	Dec-22	Sep-23

*As of September 30, 2023, and excludes PPP loans. Amounts may not total due to rounding.	6
Source: Company Y9C, SEC reports, and internal company reports

Ag Lending Focus in America's Dairyland

With our acquisition of County Bancorp in 2021, dairy-related lending became a primary line of business

Business Line Overview

• "Homegrown" team of 30+ lenders, credit and administrative support, and other agricultural professionals spread across Wisconsin, servicing farms throughout the Upper Midwest
• High personal touch "boots on the ground" monitoring of each credit
• Extensive use of USDA's Farm Service Agency (FSA) guarantee program mitigates risk
• Full suite of products to supplement lending, including crop insurance and livestock insurance
• $503 million in additional ag loans serviced for third parties(1)

$1,250

$1,000

($millions)	$750
	$500

$250 $0

Ag Related Loan Portfolio(1)

40%

$1,108

30%

20%

18%

10%

0%

2018	2019	2020	2021	2022	3Q'2023
		Nicolet		County		% of total portfolio

Dairy Industry Overview(2)

• $43.4 billion - dairy's annual impact on Wisconsin's $350 billion economy	Average Class III Milk Price (cwt)(3)
• 90% - % of Wisconsin's milk supply that is used for cheese production
• 25% - Wisconsin's leading market share position in the nation's cheese
production, which amounted to over 3.4 billion pounds produced in 2021
$18.39

• 19% - increase in per capital cheese consumption over the past decade

• $18.44 - current class III milk price (2023 monthly average - see graph)

$17.13

• 36% - expected increase in global demand for dairy over the next 10 years
$11.36
	"Through Nicolet's continued support and commitment, its dairy
	customers have made a commitment to the future of the industry
	with a sustainable approach to food production"
(1)	Company reports as of September 30, 2023
(2)	Sources: State of Wisconsin Department of Agriculture, Trade & Consumer Protection; Agricultural Marketing Resource Center; Statistia; International Dairy Foods Association; USDA	7
	Economic Research Service

1. 2023 average milk price through September 2023 ("cwt" = per hundredweight)

Diverse Loan Portfolio & Disciplined Pricing

The loan portfolio represents a diversity of industries across our footprint

Commercial Loan Portfolio by Industry Type(1)

Loan by Repricing (as of 9/30/23)(2)

	All Other,
	$717 , 14%
Wholesale	Real Estate and Rental and
Leasing, $1,472 , 29%
Trade, $200 ,
4%
Agriculture
Production
Other, $206 ,
4%
Health Care and
Social Assistance,
$236 , 5%
Retail Trade, $264
, 5%

	Variable,
	$0.95B,
	15%
Adjustable,
$0.89B,
14%	Fixed,
	$4.39B,
	71%

Investment CRE Portfolio Breakdown(3)

		$ in millions	9/30 Balance
Construction,	Dairy Cattle and Milk	Hospitality	$206
$304 , 6%
Production, $892 , 17%
	Office	$191
Accommodation		Retail	$171
	Industrial	$133
and Food
Services , $357 ,		Self-Storage	$96
7%
Manufacturing,		Assisted Living	$68
$443 , 9%
		Other	$46
		Total	$910

1. Source: Internal company reports as of September 30, 2023. Commercial loans include C&I, CRE, Ag, and Other Loans based on NAICS codes versus call report codes.
2. Source: Internal company reports
3. Source: Internal company reports. Property type based on call report codes as of September 30, 2023

% of Total Loans

3.3%

3.1%

2.7%

2.1%

1.5%

1.1%

0.7%

14.6%

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Strong Core Deposit Franchise

Overview of Nicolet Bankshares, Inc.

Demonstrated ability over time to rely on core deposits as primary funding source

Period End Total Deposits Trend

$8,000

$592 $604

Deposit Mix at 9/30/23 - $7.2 billion

Core Time

$7,000

$444

14%

Noninterest-

bearing

$6,000

millions)in($	$5,000
	$6,587	$6,578
	$4,000		$325
	$160
	$3,000	$6,022
	$81

$2,000

$3,586

$2,533 $2,794

$1,000

$0

2018	2019	2020	2021	2022	3Q'23
	Core Deposits		Non-Core Deposits

*Source: Company Y9C, SEC reports, and internal company reports. Figures may be > 100% due to rounding

Brokered	demand
8%	28%
Savings	Interest-bearing
11%
demand
	12%
	Money
	Market
	27%

Core Deposit Mix by Type at 9/30/23

Muni / Government,

5%

Brokered

& Other,

8%

Commercial,

37%

Retail,

49%9

Core Deposit Advantage

Overview of Nicolet Bankshares, Inc.

Core Deposit Balances ($B)			Deposit Commentary
					• Since the seasonal low point in March, core deposits
					have grown $172 million. However, the deposit mix
					has shifted heavily towards higher interest-bearing
$6.59B	$6.41B	$6.46B	$6.58B		products, led by CDs, whose balances are up more
			than $370 million in the last six months

• Over 64% of deposit balances have been customers of the bank for over 10 years, and over 81% have been with the bank over 5 years

• Approximately 25% of deposits are uninsured as of 9/30/23(1)

Core Deposit Growth since March 31, 2023 (seasonal low)(2)

($ in millions)

Noninterest	Interest Bearing Money Market	Savings	CDs
Bearing DDA	DDA

Source: Internal reports. Data as of September 30, 2023

10

1. Excludes deposits secured by pledged investments and internal DDA accounts
2. Excludes brokered deposits