8/14/2019 NBWU-0509 Nicolet Bank CEO Tells Shareholders

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Having avoided the banking industrys train wrecks inthe past year, Nicolet Bankshares Inc. is poised to growduring economic recovery, said Chairman and ChiefExecutive Officer Bob Atwell.

Atwell told shareholders during the companys annualmeeting at the Meyer Theatre in Green Bay that beingsteady but unfashionable has allowed the bank to

weather the storm.

The most important decisions were not made in 2008,but in 2005 and 2006. We were the class nerd. We missedall the industry disasters, he said.

Those included sub-prime loans, high-risk lendingin the commercial and industrial sector, excessivedevelopment-real estate lending, risky lending in theinvestment portfolio, having too little liquidity andcommission-based employee compensation thatencouraged high-risk lending.

Mike Daniels, president and chief operating officerof Nicolet National Bank, said the bank takes risks itunderstands and has no risk in its investment portfolio.He said it will continue to establish strong relationships

with customers.

Character is and always will be the most important(factor) because its people who pay you back,Daniels said.

Atwell said the first quarter, while not great, wasimproved. The bank reported $276,000 in earnings, more

than all of last year, when it reported $189,000 in profit,down from $4 million in 2007. It had net charge-offs of$3.86 million in 2008.

Ann Lawson, vice president and chief financial officer,said total loans increased 8 percent in 2008, to $479

million, and core deposits were up 23 percent, to$571 million.

Atwell said 2008 was the most difficult year in bankingfor many generations, but we remain fundamentallyoptimistic.

Atwell said the bank is planning for two economic-recovery scenarios. The most likely would seegovernment stimulus working as intended and theeconomy making a gradual recovery. Less likely he setthe odds at 30 percent the economy lapses into credit-driven stagflation, prompted by a collapse of the dollaras global investors sell off, because they dont believe theU.S. government has the will to react in a responsiblefashion regarding deficits.

Its not a happy scenario, but it is a significant possibilityand merits our consideration, he said.

Atwell said the bank accepted U.S. Treasury investmentthrough the Capital Purchase Program, but he is

Page 1 of 2 Nicolet Bank CEO tells shareholders the lender avoids train wrecks | Green Bay Press-Gazette May 6, 2009

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Bob Atwell, right, Nicolet Bankshares Inc. chairman and chief executive officer, answers aquestion from the audience during the banks annual shareholders meeting Tuesday at theMeyer Theatre in Green Bay. From left are Ann Lawson, vice president and chief financialofficer, and Mike Daniels, Nicolet National Bank president and chief operating officer.

Nicolet Bank CEO tells shareholders the lenderavoids train wrecksGreen Bay Press-Gazette May 6, 2009

Richard Ryman Text M.P. King Photography

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troubled that the federal government changed termsof the deal after the fact and is abusing its authority. He

said they took the money because they believed in itspublic purpose to stimulate the credit markets andbecause it could help them grow the bank and protectshareholder value.

At about the time they bank sold the Treasury $14.9million in preferred stock, it also raised $9.5 million inprivate investment.

The bank will continue to look for ways to grow, thoughit has cooled to the idea of buying other banks outrightbecause of the difficulty in telling their true conditions.He said a better way to grow might be throughpurchasing strategically placed individual branches or byacquiring distressed assets.

This is what needs to happen (for economic recovery),he said of purchasing assets. We are very interested. Itmight be a better and more fruitful way to proceed.

Re-elected directors were Atwell, Daniels, Daniel Ariens,John Dykema, Gary Fairchild, Michael Felhofer, AndrewHetzel Jr., Donald Long Jr., Benjamin Meeuwsen, SusanMerkatoris, Wade Micoley, Sandra Renard and Robert

Weyers.

This was the first annual meeting for Lawson, who joinedthe bank earlier this year, succeeding Jacqui Engebos.

Nicolet Bank CEO tells shareholders the lender avoids train wrecks | Green Bay Press-Gazette May 6, 2009