National Bank Holdings Corporation · NYSE:NBHC
National Bank — Q1 2013 Earnings Presentation
31 slides from National Bank's earnings presentation, May 7, 2013
Slide 1: First Quarter 2013 Update
Exhibit 99.1 First Quarter 2013 Update
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, bu
Slide 3: Company Overview
Company Overview
Slide 4: A Foundation For Growth
A Foundation For Growth Company Overview NBH 1Q13 Snapshot Raised $974 million in late 2009 Stock Price / Market Cap $17.90 / $936mm Completed four acquisitions in 12 months Assets $5.3bn Created meaningful scale and market share in attractive markets Deposits $4.1bn Fully integrated acquired franch
Slide 5: NBH Management Team
NBH Management Team Tim Laney Chief Executive Officer (30 years in banking) Head of Business Services at Regions Financial, where he also led the transformation of wholesale lines of business Senior managementroles in small business, commercial banking, private banking, corporate marketing and chang
Slide 6: Accomplished Board of Directors
Accomplished Board of Directors Name Title Past Experience Chairman, President, and Chief Executive Officer of Mellon Financial Frank Cahouet Chairman President and Chief Operating Officer of Fannie Mae Senior EVP and Head of Business Services of Regions Financial Tim Laney President / CEO EVP and M
Slide 7: Our Objectives
Our Objectives Leading Regional Bank Holding Company Scalable Operating Platform & Efficiencies Attractive Disciplined Client-Centered, Enhanced Product Markets Acquisitions Relationship-Driven Offerings Acquisition Growth Organic Growth 7
Slide 8: Investment Highlights
Investment Highlights Disciplined Focus on Building Meaningful Scale and Market Share in Attractive Markets Expertise in FDIC-assisted and Unassisted Bank Transactions with Substantial Future Opportunities Operating Platform Implemented with Full Conversion of All Acquisitions Organic Growth Acceler
Slide 9: Attractive Footprint
Attractive Footprint Bank Holding Company 35 70 OCC Charter (Single Charter) Local Branded Divisional Banks 70 2 25 Source: SNL Financial. 9
Slide 10: Our Markets are Attractive
Our Markets are Attractive Key Statistics by MSA, 2012 U.S. Kansas City, MO Denver, CO Front Range Population (mm) 313.1 2.1 2.6 4.2 Pop. Projection CAGR 0.7 % 0.7 % 1.4 % 1.4 % (‘12-’16) 2012 Median Household Inc. 50.2K 53.8K 57.5K 57.3K # of Businesses (000s) 77.0 114.9 182.7 Unemployment Rate 7.7
Slide 11: Proven Acquirer – FDIC Assisted and Unassisted Transactions
Proven Acquirer – FDIC Assisted and Unassisted Transactions Kansas City MSA Colorado Bank Midwest Hillcrest Bank Bank of Choice CBoC Jul-2010 / Dec-2010 Oct-2010 Jul-2011 Oct-2011 Assets: $2.4bn Assets: $1.4bn Assets: $950mm Assets: $1.2bn Deposits: $2.4bn Deposits: $1.2bn Deposits: $760mm Deposits:
Slide 12: Large Number of Acquisition Opportunities with Limited Competition
Large Number of Acquisition Opportunities with Limited Competition Future Acquisition Opportunities Areas of Focus In Market Market Extension² Total Healthy Institutions ($500mm-$10bn in Assets) Whole bank (un-assisted) transactions Number of Institutions 67 73 140 Total Assets ($bn) $102.4 $113.0 $
Slide 13: Well Positioned to Capture Fair Share of Market
Well Positioned to Capture Fair Share of Market Progress to Date ($mm) Market Opportunity Market Deposits ($bn) KC MSA $ 43.6 Colorado Front Range 78.2 Total $ 121.8 Market Mortgage Outstandings ($bn) KC MSA $ 10.5 Colorado Front Range 21.5 Total $ 32.0 Number of Small Businesses (K) KC MSA 59.4 Col
Slide 14: New Leadership Hires
New Leadership Hires Thomas Metzger Tim Laney Kathy Donald Gaiter Brian Lilly Richard Newfield Lisa Monteleone President, Interim President, Hinderhofer Chief of Acquisitions Chief Financial Chief Risk Chief Human Bank Midwest / Community Banks & Strategy Chief of Integration, Resources Officer Offi
Slide 15: Accomplishments to Date
Accomplishments to Date Completed four acquisitions Established scalable, efficient operating platform to support growth Fully integrated Kansas City and Colorado franchises Successfully completed IPO Established divisional branding and marketing Consolidated bank charters Leadership and banker hire
Slide 16: Financial Overview
Financial Overview
Slide 17: First Quarter Earnings Summary
First Quarter Earnings Summary Reported 1Q13 net income of $2.1 million or $0.04 per share. Grew the strategic loan portfolio by 11.4% annualized and successfully exited $98.7 million of non- strategic loan portfolio. Grew average transaction account deposit balances 4.8% annualized, driving a 3 bas
Slide 18: Off to a Great Start
Off to a Great Start ($ in millions, except per share data) Profitability & Adj. ROATA $ 16.9 $ 15.6 Profitable since beginning of operating 0.39 % 0.38 % 0.33 % 0.34 % 0.34 % 0.29 % history¹ 0.27 % TBV accretive even after four acquisitions $ 4.1 $ 4.0 $ 4.3 and start-up costs $ 3.3 $ 3.0 FY2011 FY
Slide 19: Low-Risk Balance Sheet
Low-Risk Balance Sheet Total Assets Loans Non 310-30 Covered FDIC Other Assets Loans $ 70 Indemnification 8% $1,035mm 59% Asset 1% Cash Marked to 8% Loans Marked to Market & New 33% Market Covered Originations Non-Covered 36% 30% $ 594 $ 371 Investment Securities 50% New Non-Covered Originations $ 2
Slide 20: High Quality and Stable Strategic Loan Portfolio
High Quality and Stable Strategic Loan Portfolio ($ in millions) Loan Portfolio Strategic Loan Composition (31-Mar-13) Strategic Loans Non-Strategic Loans Strategic Loans – Non-performing (31-Mar-13) Loan Originations Strategic Portfolio: $1.2bn 20
Slide 21: Growing Low Cost Transaction Accounts
Growing Low Cost Transaction Accounts ($ in millions) Transaction Deposits Time Deposits Deposit Composition Cost of Deposits Time Maturity 21
Slide 22: P&L Metrics
P&L Metrics ($ in millions) Net Interest Margin Provision For Loan Losses Adjusted Non-Interest Income ¹ Adjusted Non-Interest Expense ¹ Note: Please refer to the appendix for a reconciliation of non-GAAP financial metrics. ¹ Adjusted metrics exclude initial public offering related expenses, bargain
Slide 23: Looking Ahead
Looking Ahead
Slide 24: Organic Earnings Potential
Organic Earnings Potential ROATA 1.00 % - 1.25 % Target ROATA 0.29 % 1Q13 1 Expense Organic Run-off Acquired Pro Forma Adjusted Adjustments Growth Portfolios Hillcrest Bank Higher yielding Professional fees Ramp-up of loan decline to normal production acquired loans operating levels run-off Continue
Slide 25: Key Long-Term Financial Targets
Key Long-Term Financial Targets Fully Levered Targets Assets >$10bn Efficiency Ratio <60% ROATA 1.00% - 1.25% ROATCE 13% - 16% Dividend Payout Ratio 25% Tier 1 Leverage 8% 25
Slide 26: Investment Highlights
Investment Highlights Disciplined Focus on Building Meaningful Scale and Market Share in Attractive Markets Expertise in FDIC-assisted and Unassisted Bank Transactions with Substantial Future Opportunities Operating Platform Implemented with Full Conversion of All Acquisitions Organic Growth Acceler
Slide 27: Appendix
Appendix
Slide 28: Conservative Investment Portfolio
Conservative Investment Portfolio ($ in millions) 1Q13 Investments by Asset Class ¹ 100% of portfolio AAA rated or U.S. agency backed ² Stable duration of 3.3 years OCI fluctuations minimized by 20% of portfolio in Held-To-Maturity. $68mm in prime auto ABS is AAA rated and has duration of 0.5 years
Slide 29: Net Interest Income Sensitivity
Net Interest Income Sensitivity NBH Balance Sheet positioned to benefit from rising rate environment Net Interest Income Change ¹ Note: Interest Rate Risk as of 31-Mar-2013. ¹ 12-month simulated net interest income impact using management projected balance sheet and an immediate parallel shift in th
Slide 30: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures As of and for the three months ended ($ in millions) 31-Dec-11 31-Mar-12 30-Jun-12 30-Sep-12 31-Dec-12 31-Mar-13 Total stockholders' equity $ 1,089 $ 1,091 $ 1,097 $ 1,096 $ 1,091 $ 1,087 Less: goodwill (60) (60) (60) (60) (60) (60) Less: intangibles (33) (32) (30
Slide 31: Reconciliation of Non-GAAP Measures (cont’d)
Reconciliation of Non-GAAP Measures (cont’d) As of and for the three months ended ($ in millions) 31-Dec-11 31-Dec-12 31-Mar-12 30-Jun-12 30-Sep-12 31-Dec-12 31-Mar-13 Non-interest income adjustments Reported non-interest income $ 89.5 $ 37.4 $ 10.3 $ 10.0 $ 8.1 $ 9.0 $ 7.1 Add: loss (gain) on sale
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