National Bank Holdings Corporation · NYSE:NBHC
National Bank — Q4 2021 Earnings Presentation
40 slides from National Bank's earnings presentation, Jan 21, 2022
Slide 1: Investor Presentation Q4 2021
Investor Presentation Q4 – 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private share price of the Company’s stock; the Company's ability to realize deferred tax assets or the Securities Litigation Reform Act of 1995. Forward-looking statements contain words such
Slide 3: About Non-GAAP Financial Measures
About Non-GAAP Financial Measures Certain of the financial measures and ratios we present, including “average tangible assets,” substitute for financial information presented in accordance with GAAP and you should not rely “return on average tangible assets,” “average tangible common equity,” “retur
Slide 4: Table of Contents
Table of Contents Financial Performance 08 Credit 13 Balance Sheet 17 2UniFi 21 Management Team 24 Corporate Governance Overview 27 Appendix 35
Slide 5: Company Highlights and Attractive Markets
Attractive Markets Headquarters Company Highlights Denver, CO Banking Centers(1) 81 Listing NYSE: NBHC Balance Sheet 2021 Total Assets (mm) $7,214 Total Loans (mm) $4,513 Total Deposits (mm) $6,228 Key Ratios 2021 Common Equity Tier 1 14.3% Tier 1 Leverage 10.4% ROATA(2) 1.37% 40 banking centers ‒Fr
Slide 6: Recent Recognition
Recent Recognition U.S. News: Best Places to Live Rankings Fortress Balance #1 Sheet Largest Publicly Traded Bank HQ’d in Colorado #1 and #5 Robust Profitability Boulder, CO and Austin, TX Market Presence in Top 5 Best Places to Live(1) Positioned in #3 Attractive Markets Colorado Market Share
Slide 7: Shareholder Returns
Shareholder Returns Total Shareholder Returns Since 2017 (Through 12/31/2021) Net Income $88.6 $93.6 ($ in millions) $80.4 $67.8 Non-Adjusted $6.3 70% Adjusted $35.0 $61.5 $23.1 $20.4 50% 51.5% $4.9 $14.6 (2) (2) YE15 YE16 YE17 YE18 YE19 YE20 YE21 30% 29.8% Historical Dividend Per Share CAGR: 32% $0
Slide 8: Financial Performance
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Slide 9: 2021 Financial Highlights
2021 Financial Highlights Net Income $93.6 million Record full-year net income of $93.6 million, a 5.7% increase over 2020 Capital Ratios Grew loans 13.4% annualized over 3Q21, excluding PPP loans 14.3% Common Equity Tier 1 Ratio Liquidity Full-year record loan originations of $1.5 billion Loa
Slide 10: Profitable Steady Growth
Profitable Steady Growth Net Income $88.6 $93.6 Pre-Provision Net Revenue FTE(1) EPS (Fully Diluted) ($ in millions) ($ in millions) $132.1 $80.4 Non-Adjusted Adjusted Non-Adjusted $112.9 $3.01 $67.8 $110.8 $2.85 Adjusted $2.55 $6.3 $83.4 $2.16 $0.21 $35.0 $53.7 $54.7 $1.26 $61.5 $1.95 $23.1 $20.4 $
Slide 11: Growth Trends
Growth Trends Total Assets Total Loans Tangible Common Equity(1) ($ in billions) ($ in billions) ($ in millions) $7.2 Non-PPP Loans PPP Loans $6.7 $4.5 $728.8 $4.4 $4.4 $707.3 $0.2 $5.9 $4.1 $651.4 $5.7 $577.4 $553.3 $4.8 $4.7 $4.6 $3.2 $4.2 $478.9 $482.0 $2.9 $2.6 YE15 YE16 YE17 YE18 YE19 YE20 YE21
Slide 12: Regulatory Capital
Regulatory Capital $372 million in excess capital over 7.0% common Capital Ratios – 4Q21 equity tier 1 risk-based regulatory requirement TIER 1 LEVERAGE 10.4% COMMON EQUITY TIER 1 RISK-BASED 14.3% Double-leverage ratio just 88.8% TIER 1 RISK-BASED 14.3% TOTAL RISK-BASED 15.9% Holding company c
Slide 13: Credit
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Slide 14: Uniquely Diversified $4.5 Billion Loan Portfolio
Uniquely Diversified $4.5 Billion Loan Portfolio Concentrations(1) Granular and Well-Diversified Loan Portfolio Consumer 15% Self-imposed concentration limits ensure a granular and diverse loan portfolio and C&I and Owner protect against downside risk to any particular industry or real estate sect
Slide 15: Strong Credit Quality History
Strong Credit Quality History Allowance for loan losses coverage equal to 459% of non-performing loans Acquisition fair value marks on acquired loans total $5.8 million, 3.7% of acquired loans or 0.1% of total loans Non-performing Loans Non-performing Asset Composition ($ in millions) 0.60% 0.49
Slide 16: Allowance For Credit Loss
Allowance For Credit Loss Allowance to total loan coverage of 1.10% provides coverage for economic uncertainty ACL/Total Loans 1.10% ACL/Total Loans 1.02% $49.7 $44.9 ACL(1) ACL(1) 1/1/2020 12/31/2021 All dollars in millions (1)Investment securities portfolio consists of U.S. agency mortgage backe
Slide 17: Balance Sheet
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Slide 18: Solid Loan Growth
Solid Loan Growth Total Loan Originations(1) Non-PPP Loan Originations Loan Composition ($ in billions) ($ in millions) $475.4 ($4.5 Billion) $413.3 $362.1 Owner Occupied $1.5 CRE 16% $1.2 $1.2 $1.2 $272.5 $1.0 $1.0 CRE $0.9 $173.1 C&I 15% 53% Resi Mortgage 15% FY15 FY16 FY17 FY18 FY19 FY20 FY21 4Q2
Slide 19: High Quality, Highly Liquid Investment Portfolio
High Quality, Highly Liquid Investment Portfolio $1.3 Billion Investment Portfolio(1) 0.2% 99.8% of portfolio is U.S. agency/sponsored U.S. Agency/Sponsored Agency agency backed MBS 4Q21 yield of 1.42% 41.7% U.S. Agency/Sponsored Agency 47% of portfolio in Held-to-Maturity 58.1% CMO Zero all
Slide 20: Low Cost Transaction Deposits
Low Cost Transaction Deposits Growing Low Cost Transaction Accounts Deposit Composition ($ in billions) Demand & NOW Savings & MM CDs < $250k CDs >= $250k Total Average Transaction Deposits Average Time Deposits $5.1 $4.5 $4.7 $5.7 $6.2 100% 3% 3% 3% 2% $4.2 14% 11% 21% 19% $3.5 $3.6 36% 37% 37% 37%
Slide 21: 2UniFi
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Slide 22: Mission
Mission To help small and medium sized businesses: • Increase their access to the US Banking System • Reduce their costs while saving time • Increase their actionable information With the goal of reducing stress in the lives of business owners and operators. 22
Slide 23: Delivering an Innovative SMB Marketplace and Platform
Delivering an Innovative SMB Marketplace and Platform 23
Slide 24: Management Team
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Slide 25: Experienced Management Team
Experienced Management Team Tim Laney Aldis Birkans Chairman, President & CEO Chief Financial Officer (40 years in banking) (23 years in financial industry) • Head of Business Services at Regions Financial, where he also led the transformation of • Senior Vice President, Treasurer at NBHC wholesale
Slide 26: Management & Directors Beneficial Ownership
Management & Directors Beneficial Ownership (as of 12/31/21) NBHC MANAGEMENT & DIRECTORS BENEFICIAL OWNERSHIP(1) PERCENT OF CLASS(2) G. Timothy Laney 549,533 1.82% Aldis Birkans 52,904 0.18% Richard U. Newfield, Jr. 150,726 0.50% Angela Petrucci 13,356 0.04% Ralph W. Clermont 81,509 0.27% Robert E.
Slide 27: Corporate Governance
Be National Bank Holdings Corporate Governance
Slide 28: Best Practices In Governance and Compensation
Best Practices In Governance and Compensation NBHC’s corporate governance policies and executive compensation practices support our business and align with best practices Corporate Governance Executive Compensation Lead Independent Director with robust role and responsibilities Provide the major
Slide 29: NBHC Board of Directors
NBHC Board of Directors G. Timothy Laney Robust Lead Director President, CEO and Chairman Former Sr Executive VP & Head of Business Responsibilities Services at Regions Financial 24-year tenure at Bank of America, and a member of Bank of America’s Management Operating Committee Mr. Clermont
Slide 30: Board Qualifications and Skills
NBHC Board Represents a Diverse Range of Qualifications and Skills Experience or Number of Directors Expertise CEO or President of Private or Public 5 Company Experienced leaders Other Public Board capable of Experience 4 overseeing execution and challenging management Financial or Audit Background
Slide 31: Board's Role in Oversight of Risk
Board’s Role in Oversight of Risk The Board is actively engaged in NBHC’s risk management. Robust Risk Oversight at Board Level Risk Board Oversight Actions Cybersecurity NBHC Audit and Risk Committee is responsible for oversight Employs detection and response mechanisms designed to Evolving nature
Slide 32: Overview of NBH Bank Board of Directors
Overview of NBH Bank Board of Directors In addition to the NBHC Board, there is an added layer of oversight through the Board of Directors of NBH Bank, NBHC’s wholly-owned subsidiary NBH Bank Board Composition Aldis Birkans Christopher Randall Chief Financial Officer EVP, Commercial, Specialty and B
Slide 33: Executive Compensation Program
Executive Compensation Program NBH’s executive compensation practices align management incentives with long-term shareholder interests Components of Executive Compensation (2020) Compensation Metrics Tied to Long-Term Strategy Component Metrics Link to Strategy Base Salary • Reviewed annually • Amon
Slide 34: Environmental, Social and Governance (ESG) Matters
Environmental, Social and Governance (ESG) Matters NBH’s long-standing commitment to ESG in all of its business activities Committed to using environmentally friendly office products and materials and optimizing our office and banking center space. Environmental Continued investment in our mobil
Slide 35: Appendix
B= National Bank Holdings CORPORATION" Appendix
Slide 36: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures ($ in millions, except per share) As of and for the years ended Return on Average Tangible Assets and Return on Average Tangible Equity 31-Dec-21 31-Dec-20 31-Dec-19 31-Dec-18 31-Dec-17 31-Dec-16 31-Dec-15 Net income $ 93.6 $ 88.6 $ 80.4 $ 61.5 $ 14.6 $ 23.1 $ 4.9
Slide 37: Reconciliation of Non-GAAP Measures (cont'd)
Reconciliation of Non-GAAP Measures (cont’d) ($ in millions, except per share) As of and for the years ended Adjusted Financial Results 31-Dec-18 31-Dec-17 Adjustments to net income: Net income $ 61.5 $ 14.6 Adjustments (1) 6.3 20.4 Adjusted net income (non-GAAP) $ 67.8 $ 35.0 Adjustments to earning
Slide 38: Reconciliation of Non-GAAP Measures (cont'd)
Reconciliation of Non-GAAP Measures (cont’d) ($ in millions, except per share) As of and for the three months ended As of and for the years ended Efficiency Ratio 31-Dec-21 31-Dec-20 31-Dec-19 31-Dec-18 31-Dec-17 31-Dec-16 31-Dec-15 Net interest income $ 49.5 $ 187.1 $ 192.9 $ 205.8 $ 197.4 $ 146.3
Slide 39: Reconciliation of Non-GAAP Measures (cont'd)
Reconciliation of Non-GAAP Measures (cont’d) ($ in millions, except per share) As of and for the years ended Tangible Common Book Value Ratios 31-Dec-21 31-Dec-20 31-Dec-19 31-Dec-18 31-Dec-17 31-Dec-16 31-Dec-15 Total shareholders' equity $ 840.1 $ 820.7 $ 766.9 $ 695.0 $ 532.4 $ 536.2 $ 617.5 Less
Slide 40: Thank you.
B® National Bank Holdings CORPORATION ie a | Thank you.
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