National Bank Holdings Corporation · NYSE:NBHC
National Bank — Q4 2012 Earnings Presentation
31 slides from National Bank's earnings presentation, Feb 11, 2013
Slide 1: Fourth Quarter 2012 Update
Exhibit 99.1 Fourth Quarter 2012 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 4Q12 Snapshot Raised $974 million in late 2009 Stock Price / Market Cap $18.52 / $1.0bn Completed four acquisitions in 12 months Assets $5.4bn Created meaningful scale and market share in attractive markets Deposits $4.2bn 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 management roles in small business, commercial banking, private banking, corporate marketing and chan
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 Kirksville MSA Maryville MSA St. Joseph MSA Kansas City Kansas City MSA OCC Charter (Single Charter) Fort Collins MSA Boulder MSA Greeley MSA Denver MSA Local Branded Divisional Banks Denver Colorado Springs MSA Source: SNL Financial. 9
Slide 10: Our Markets are Attractive
Our Markets are Attractive Key Statistics by MSA, 2011 U.S. Kansas City, MO Denver, CO Front Range Population (mm) 311.0 2.1 2.6 4.1 Pop. Projection CAGR 0.7 % 0.9 % 1.2 % 1.2 % (‘11-’16) 2011 Median Household Inc. $50.2K $54.4K $59.0K $57.8K # of Businesses (000s) 72.8 95.7 154.9 Unemployment Rate
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: $760mm Deposits:
Slide 12: Large Number of Acquisition Opportunities with Limited Competition
Large Number of Acquisition Opportunities with Limited Competition 4 Future Acquisition Opportunities Historical Acquisition Market Share In Market Market Extension ² Total Markets % of Troubled Institutions ¹ Deposits Deposits Number of Institutions 30 12 42 Acquired Acquired # of Total Assets ($bn
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) $ 140 $ 128 KC MSA $ 43.6 Colorado Front Range 78.2 Total $ 121.8 $ 82 $ 84 Market Mortgage Outstandings ($bn) $ 54 KC MSA $ 10.5 Colorado Front Range 21.5 $ 35 $ 25 $ 25 Total $ 32.0 Numb
Slide 14: New Leadership Hires
New Leadership Hires Thomas Metzger Joseph Bonner Kathy Donald Gaiter Brian Lilly Richard Newfield Lisa Monteleone President, President, Hinderhofer Chief of Acquisitions Chief Financial Chief Risk Chief Human Bank Midwest / Community Banks Chief of Integration, & Strategy Officer Officer Resources
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 Divisional branding and marketing Consolidated bank charters Leadership and banker hires 30 new lea
Slide 16: Financial Overview
Financial Overview
Slide 17: Fourth Quarter Earnings Summary
Fourth Quarter Earnings Summary Reported 4Q12 net income of $3.0 million or $0.06 per share Grew organic loan production for the eighth consecutive quarter, resulting in growth in our strategic loan portfolio Grew average non-interest bearing demand deposit balances 16.6% annualized, leading to grow
Slide 18: Off to a Great Start
Off to a Great Start ($ in millions, except per share data) Profitability & Adj. ROATA $ 17.0 $ 15.7 Profitable since beginning of operating history¹ 0.39 % 0.38 % 0.33 % 0.34 % 0.34 % 0.25 % TBV accretive even after four acquisitions $ 1.3 $ 4.1 $ 4.0 $ 4.3 $ 3.1 and start-up costs 0.09 % FY2010 FY
Slide 19: Low-Risk Balance Sheet
Low-Risk Balance Sheet Total Assets Loans Non 310-30 FDIC Other Assets Loan Pools Covered $80mm Indemnification 7% $1,016mm 55% Asset 2% Cash New New Non- Covered 14% Loans Marked to Originations Originations $397mm Market 29% $539mm 34% 38% Marked to Non- Covered Investment Market & Covered $529mm
Slide 20: High Quality and Stable Strategic Loan Portfolio
High Quality and Stable Strategic Loan Portfolio ($ in millions) Loan Portfolio Strategic Loan Composition (31-Dec-12) Strategic Loans Non-Strategic Loans Consumer $ 1,189 4% $ 1,127 $ 1,085 $ 1,086 Comm. $ 1,047 14% 28% $ 937 $ 852 $ 719 Resi Agriculture 43% 14% CRE 25% 12/31/11 6/30/12 9/30/12 12/
Slide 21: Growing Low Cost Transaction Accounts
Growing Low Cost Transaction Accounts ($ in millions) Transaction Deposits Time Deposits Deposit Composition Demand & NOW Savings & MM Retail Time Jumbo Time $3,473 $5,063 $4,530 $4,282 $4,201 $ 2,785 $ 2,448 22 % 22 % 18 % 17 % 15 % $ 2,278 $ 2,337 $ 1,945 28 % 27 % $ 1,753 30 % 33 % 43 % 29 % 29 %
Slide 22: P&L Metrics
P&L Metrics ($ in millions) Net Interest Margin Provision For Loan Losses 3.98 % 3.91 % 4.00 % 3.92 % 4.09 % $ 28.0 3.40 % Loan Pools $ 20.0 Impairment $ 19.0 $ 5.0 Non-Loan $ 12.2 Pools $ 7.8 $ 15.0 $ 10.5 $ 5.3 $ 3.3 $ 9.0 $ 2.7 $ 3.7 $ 4.6 $ 1.6 $ 1.8 $ 1.6 $ 1.1 FY2011 FY2012 1Q12 2Q12 3Q12 4Q12
Slide 23: Looking Ahead
Looking Ahead
Slide 24: Organic Earnings Potential
Organic Earnings Potential ROATA 1.00 % - 1.25 % Target ROATA 0.38 % 4Q12 Expense Organic Run-off Acquired Pro Forma Adjusted ¹ Adjustments Growth Portfolios Hillcrest Bank Professional fees Ramp-up of loan Higher yielding 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) 4Q12 Investments by Asset Class ¹ 100% of portfolio AAA rated or U.S. agency Mortgage Backed backed ² Securities - Fixed Rate Mortgage Backed Stable duration of 3.2 years Securities - ARMs Collateralized Mortgage Obligations - Fixed Rate OCI fluctuat
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 12.84 % 13.0 % 10.0 % 7.43 % 7.0 % 4.0 % 1.0 % (2.0)% (5.0)% (2.88)% -50 bps +100 bps +200bps Interest Rate Shock Note: Interest Rate Risk as of 31-Dec-12. ¹ 12-month sim
Slide 30: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures ($ in millions) For the 12-Months Ended For the 3-Months Ended 31-Dec-10 31-Dec-11 31-Dec-12 31-Mar-12 30-Jun-12 30-Sep-12 31-Dec-12 Net Income (Loss) $ 6.1 $ 42.0 $(0.5) $ 1.6 $ 2.7 $(7.9) $ 3.0 Less: After-Tax Bargain Purchase Gain (25.4) (36.6) – – – – – Add: A
Slide 31: Reconciliation of Non-GAAP Measures (cont'd)
Reconciliation of Non-GAAP Measures (cont'd) For the 12-Months Ended For the 3-Months Ended 31-Dec-10 31-Dec-11 31-Dec-12 31-Mar-12 30-Jun-12 30-Sep-12 31-Dec-12 ROAA / ROATA GAAP ROAA 0.44 % 0.81 % (0.01)% 0.11 % 0.18 % (0.56)% 0.22 % Plus: Adjustments (0.35) (0.48) 0.28 0.09 0.10 0.84 0.10 Adjuste
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