National Bank Holdings Corporation · NYSE:NBHC
National Bank — Q1 2024 Earnings Presentation
41 slides from National Bank's earnings presentation, Apr 25, 2024
Slide 1: Investor Presentation Q1 2024
Investor Presentation Q1 – 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private growth; changes in sources and uses of funds; increased competition in the financial services Securities Litigation Reform Act of 1995. Forward-looking statements contain words such a
Slide 3: About Non-GAAP Financial Measures
About Non-GAAP Financial Measures Certain of the financial measures and ratios we present, including “tangible assets,” “average evaluating period-to-period comparisons. We believe that these non-GAAP financial measures tangible assets,” “return on average tangible assets,” “tangible common equity,”
Slide 4: Table of Contents
Table of Contents Financial Performance 07 Credit 13 Balance Sheet 18 2UniFi 23 Cambr 25 Management Team 27 Corporate Governance 30 Appendix 37
Slide 5: Company Highlights and Attractive Markets
Attractive Markets Headquarters Company Highlights Denver, CO Banking Centers(1) 94 Listing NYSE: NBHC Balance Sheet 1Q24 Total Assets (mm) $9,967 Total Loans (mm) $7,569 Total Deposits (mm) $8,518 Key Ratios 1Q24 Common Equity Tier 1 12.35% Tier 1 Leverage 9.99% ROATA(2) 1.39% ROATCE(2) 15.14% 37 b
Slide 6: Shareholder Returns
Shareholder Returns 5-year Performance of NBH Shareholder Returns vs. S&P 600 Regional Banks(1) Net Income $142.0 ($ in millions) 30% Non-Adjusted Adjusted $99.6 $93.6 $88.6 25% Baseline NBH Outperformance $80.4 $28.3 20% $71.3 $31.4 15.7% 15% (2) YE19 (2) YE20 YE21 YE22 YE23 1Q24 10% Historical Div
Slide 7: Financial Performance
BE National Bank Holdings CORPORATION” Financial Performance
Slide 8: Q1 2024 Financial Highlights
Q1 2024 Financial Highlights Net Income Quarterly net income of $31.4 million, or $0.82 per diluted share $31.4 million 3.78% Net interest margin FTE(1) The fully taxable equivalent net interest margin was 3.78%. Total deposit beta to date in the current rate cycle is 37.5% Capital Ratios Stro
Slide 9: Profitable Steady Growth
Profitable Steady Growth Net Income $142.0 Pre-Provision Net Revenue FTE(1) EPS (Fully Diluted) $3.72 ($ in millions) $190.0 ($ in millions) Non-Adjusted $3.01 $3.05 Non-Adjusted Adjusted $2.85 $143.5 $99.6 $132.1 $2.55 Adjusted $93.6 $15.1 $0.87 $88.6 $80.4 $112.9 $110.8 $2.16 $28.3 $0.21 $67.8 $83
Slide 10: Growth Trends
Growth Trends Total Assets Total Loans Tangible Common Equity(3) ($ in billions) ($ in billions) ($ in millions) $9.9 $9.9 Non-PPP Loans $9.6 (1) PPP Loans $7.7 $881.7 $7.6 $860.3 (2) $7.2 $776.0 $7.2 $728.8 $707.3 $6.7 $651.4 $5.9 $5.7 $577.4 $4.4 $4.4 $4.5 $4.1 $0.2 $4.2 YE18 YE19 YE20 YE21 YE22 Y
Slide 11: Trust and Wealth Partners
Trust and Wealth Partners Trust and Wealth Management solution tailored to high net worth individuals Scalable Private Wealth team provides a broad range of financial and retirement planning solutions, creating an opportunity to further leverage the platform to new and existing NBH clients Est
Slide 12: Prudent Stewards of Capital
Prudent Stewards of Capital $417 million in excess capital over 7.0% common ROATCE(1) – 1Q24 equity tier 1 risk-based regulatory requirement NBHC 15.14% PEER MEDIAN(2) 12.01% Double-leverage ratio of 92.8% $50 million authorized for current share repurchase program Capital Ratios – 1Q24 TIER 1
Slide 13: Credit
F National Bank Holdings CORPORATION”
Slide 14: Uniquely Diversified $7.6 Billion Loan Portfolio
Uniquely Diversified $7.6 Billion Loan Portfolio Concentrations Granular and Well-Diversified Loan Portfolio C&I 43% 6% Non Owner- and 14% 5% Occupied CRE Self-imposed concentration limits ensure a granular and diverse loan portfolio and Owner 1% Occupied 3% 24% protect against downside risk to an
Slide 15: Granular CRE Portfolio
Granular CRE Portfolio Non-Owner Occupied CRE Non-Owner Occupied CRE Portfolio Characteristics Office: 1-4 Family Nursing Const. - Average LTV of 47.7% 5% Office Home 5% 4% - 1.3% of total loans Hotel & Lodging CML A & D 4% 24% Retail: All Other - Average LTV of 59.6% 8% - 2.1% of total loans Wa
Slide 16: Strong Credit Quality History
Strong Credit Quality History Non-performing Loans ($ in millions) Non-performing Asset Composition 0.53% 0.37% 0.47% 0.42% 0.05% 0.24% 0.23% 0.40%* 0.05% 0.05% 0.15% 0.28% 0.03% 0.05% 0.09% 0.06% 0.43% 0.34% $36 $28 0.16% 0.17% $11 $17 YE21 YE22 YE23 1Q24 YE21* YE22 YE23 1Q24 Non-performing loans A
Slide 17: Credit Loss Protection
Credit Loss Protection Total Loan Loss Coverage ACL/Total Loans Loan Marks/Total Loans Including Loan Marks 1.29% 0.35%(1) 1.64%(1) $26.2 $123.8 $97.6 ACL Loan Marks TOTAL 3/31/2024 3/31/2024 3/31/2024 All dollars in millions (1)Represents a non-GAAP financial measure 17
Slide 18: Balance Sheet
Bm National Bank Holdings CORPORATION” Balance Sheet
Slide 19: Solid Loan Growth
Solid Loan Growth Total Loan Fundings(1) Quarterly Loan Fundings Loan Composition ($ in billions) ($ in millions) ($7.6 Billion) $460.4 $2.0 $393.9 $362.3 Owner $324.1 Occupied AG $1.5 $1.5 19% $1.3 C&I $1.2 $1.2 $1.2 39% $200.0 Non-Owner Occupied CRE 25% Resi Mortgage FY18 FY19 FY20 FY21 FY22 FY23
Slide 20: High Quality Liquidity Portfolio: $1.2 Billion
High Quality Liquidity Portfolio: $1.2 Billion $1.2 Billion Liquidity Portfolio(1) Liquidity portfolio duration of 3.7 years Cash Portfolio used exclusively as an on-balance sheet 14.5% source of liquidity: U.S. Treasury 44% unencumbered 8.8% 0.2% 48% pledged directly to client deposits or r
Slide 21: Low Cost Transaction Deposits
Low Cost Transaction Deposits ($ in billions) Growing Low Cost Transaction Accounts Deposit Composition Demand & NOW Savings & MM CDs < $250k CDs >= $250k Total Average Transaction Deposits Average Time Deposits $7.2 $7.0 $6.2 $7.9 $8.2 $8.5 $5.9 100% 2% 3% 4% 4% 11% 9% 8% 8% $5.1 37% 37% 41% 44% 87
Slide 22: Relationship Focused Deposit Base: $8.5 Billion
Relationship Focused Deposit Base: $8.5 Billion Deposit Composition 4% 3% Approximately 79% FDIC insured Granular deposit base: Time Deposits 12% - Average deposit balance on full relationship Interest bearing Transaction DDA 17% basis just $49 thousand Accounts 44% - Average deposit per account
Slide 23: 2UniFi
F National Bank Holdings CORPORATION” 2UnIF I
Slide 24: 2UniFi: an innovation platform for SMBs
2UniFi: an innovation platform that builds 'capital' and drives outcomes for SMBs. Financial Capital Social Capital Technical Capital Cultural Capital Financial Management Mentorship & Guidance Operational Efficiency Fair Access FDIC insured acct., protected Dedicated mentors, situational mentorship
Slide 25: Cambr
F National Bank Holdings CORPORATION”
Slide 26: Cambr Overview
Cambr Overview Diversifies NBH’s Deposit Franchise with Minimal Overhead Costs Relationship Schematic NBH Deposit Flows Account Details & Instructions Data Embedded Cambr Finance Program End User Bank of Bank of Record Deposit $ Record $ Account $ Network About Cambr Strategic Rationale Cambr is a
Slide 27: Management Team
Bm National Bank Holdings CORPORATION” Management Team
Slide 28: Experienced Management Team
Experienced Management Team Tim Laney Aldis Birkans Chairman, President & CEO Chief Financial Officer (42 years in banking) (25 years in financial industry) • Head of Business Services at Regions Financial, where he also led the transformation • Senior Vice President, Treasurer at NBHC of wholesale
Slide 29: Management & Directors Beneficial Ownership
Management & Directors Beneficial Ownership (as of 3/31/24) NBHC MANAGEMENT & DIRECTORS BENEFICIAL OWNERSHIP(1) PERCENT OF CLASS(2) G. Timothy Laney 548,701 1.44% Aldis Birkans 90,542 0.24% Richard U. Newfield, Jr. 193,734 0.51% Angela Petrucci 28,419 0.07% Ralph W. Clermont 89,162 0.23% Robert E. D
Slide 30: Corporate Governance
BE National Bank Holdings CORPORATION” Corporate Governance
Slide 31: 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 32: 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 33: 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 Gupta Laney Spring Zeile 4 Company Experienced leaders capable of overseeing Other Public Board Experience Clermont Dean Gupta Zeile 4 execution and ch
Slide 34: 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 35: Executive Compensation Program
Executive Compensation Program NBH’s executive compensation practices align management incentives with long-term shareholder interests Components of Executive Compensation (2023) Compensation Metrics Tied to Long-Term Strategy Component Metrics Link to Strategy Base Salary Among other things, attr
Slide 36: Doing Good - Environmental, Social and Governance Matters
“Doing Good” - Environmental, Social and Governance (ESG) Matters NBH’s long-standing commitment to “Doing Good” 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
Slide 37: Appendix
F National Bank Holdings CORPORATION” Appendix
Slide 38: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures ($ in millions, except per share) (2) Represents non-recurring acquisition expense related to the Bank of Jackson Hole and Rock Canyon Bank acquisitions in 2022, and the Peoples acquisition in 2018 38
Slide 39: Reconciliation of Non-GAAP Measures (cont'd)
Reconciliation of Non-GAAP Measures (cont’d) ($ in millions, except per share) 39
Slide 40: Reconciliation of Non-GAAP Measures (cont'd)
Reconciliation of Non-GAAP Measures (cont’d) ($ in millions, except per share) 40
Slide 41: Thank you.
BE National Bank Holdings CORPORATION”
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