National Bank Holdings Corporation · NYSE:NBHC
National Bank — Q3 2016 Earnings Presentation
28 slides from National Bank's earnings presentation, Nov 4, 2016
Slide 1: Q3 2016 Investor Presentation
Q3 2016 Investor Presentation
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contain words such as “anticipate,” “believe,” “can,” “would,” “should,” “could,” “may,” “predict,” “seek,” “poten
Slide 3: Company Overview
Company Overview ii National Bank Holdings
Slide 4: NBHC Markets and Family of Brands
NBHC Markets and Family of Brands 42 banking centers Ranks #5 in deposit market share in Kansas City MSA for local banks Population: Metro KC – 2.1 million Favorable demographics vs. national levels in: Unemployment ‒ Household Income Business Climate & Recognition #2 Best City for Jobs (CBS MoneyWa
Slide 5: Strategic Execution Highlights
Strategic Execution Highlights Originated Loan Growth 21% $428 million Originated Loan Growth Buybacks $529 million 50% Shares repurchased since early 2013 @ average price of $20.00 Increasing loan originations; $1 billion 2015: $967 million 2014: $869 million 2013: $714 million DDA Growth 6% $46 mi
Slide 6: Attractive and Growing Markets
NBHC Markets and Family of Brands 42 banking centers Ranks #5 in deposit market share in Kansas City MSA for local banks Population: Metro KC – 2.1 million Favorable demographics vs. national levels in: Unemployment ‒ Household Income Business Climate & Recognition #2 Best City for Jobs (CBS MoneyWa
Slide 7: Key Statistics by MSA
Key Statistics by MSA Source: FHFA, SNL Financial, U.S. Census, U.S. Bureau of Economic Analysis. Note: “Front Range” statistics include populated weighted values for Denver, Boulder, Colorado Springs, Fort Collins, and Greeley MSAs. Deposit data as of 30-Jun-16. Front Range unemployment based on a
Slide 8: Loan Origination Strategy is Accelerating
$1 billion in loan originations over the past twelve months; Marks a key milestone Relationship banking model with a focus on the markets we serve Originated loans grew 21% over prior year Total loans grew 12% over prior year Acquired problem loans decreased 29% over prior year Total Loan Compositio
Slide 9: Loan Credit Quality ($2.8 Billion Outstanding)
Loan Credit Quality ($2.8 Billion Outstanding) Portfolio Characteristics Low historical non 310-30 net charge offs – 2014: 0.06%, 2015: 0.12%, and 2016 YTD annualized: Reported 1.16% / 0.13% (excluding energy) Non-Energy loans have excellent credit metrics as demonstrated by a 0.33% non-performing l
Slide 10: $87 Million Energy Portfolio
$87 Million Energy Portfolio Energy Portfolio Profile 3.1% of loans, 2.0% of earning assets, 18.3% of risk based capital Decreased $60.3 million, or 41.0%, from December 31, 2015 Four energy sector loans with balances of $13.3 million were on non-accrual at September 30, 2016 Classified loan levels
Slide 11: Attractive $158 Million 310-30 Loan Pools
Attractive $158 Million 310-30 Loan Pools Credit Quality ($ in millions) Net Charge-offs, Annualized Allowance for Loan Losses Strong Credit Quality on $2.7 Billion of Non 310-30 Loans Accretable Yield Reclassification Life-to-Date YTD net charge-offs for non 310-30 loans 116 basis points, annualize
Slide 12: Credit Quality Remains Strong in Non-energy Portfolio
Credit Quality Remains Strong in Non-energy Portfolio ($ in millions) Credit Quality Non 310-30 Classified Loans Non-performing Loans Non-performing Assets Total non-performing loans make up 0.80% of total loans. Excluding energy sector, ratio falls to 0.33% and shows continued improving trend. Non-
Slide 13: Deposit Composition
Deposit Composition Strong Transaction Deposit Growth ($ in millions) Average Transaction Deposits & Repos1 Average Time Deposits1 Growing Low Cost Transaction Accounts 14% (27)% (5) bps Average transaction deposits and repos remain strong in attractive markets of Colorado and Kansas City MSA YoY av
Slide 14: Financial Overview
Financial Overview 4 Bi National Bank Holdings
Slide 15: Third Quarter 2016 Summary
At September 30, 2016, loans totaled $2.8 billion and increased $84.1 million, or 12.2% annualized, on the strength of originations totaling $282.0 million. Total non 310-30 loans at September 30, 2016 increased $362.7 million, or 15.8%, since September 30, 2015. Fully taxable equivalent net interes
Slide 16: Steady Progress Towards Long-term Profitability Targets
Strong Q3 results include $6.5 million in gains from collection efforts on the acquired problem loans and OREO portfolio EPS run-rate in the low $0.20 range Reaching revenue inflection point as originated loans are outpacing the impact of decreasing 20+% yielding ASC 310-30 acquired loans (3Q16 tota
Slide 17: Net Interest Margin and Net Interest Income
Net Interest Margin1 Comments Net Interest Income1 Replacing High-Yielding Acquired Loans with Originations P&L Metrics ($ in millions) YTD16 fully taxable net interest income totaled $112.9 million, a $5.9 million decrease YoY due to lower levels of higher yielding 310-30 loans and investment portf
Slide 18: Net Interest Income Sensitivity
1 12-month simulated net interest income impact using management projected balance sheet and an immediate parallel shift in the yield curve. Rate risk measures are adjusted to reflect less excess cash as a result of reducing excess capital to 9% leverage ratio. NBHC Balance Sheet Positioned to Benef
Slide 19: Non-Interest Income & Expense
Non-Interest Income & Expense 1 Other expenses include: banking center consolidation charges, contract termination accrual, core system conversion-related expenses, acquisition-related expenses, severance expense and change in fair value of warrant liability. ($ in millions) Non-Interest Expense Non
Slide 20: Investment Portfolio Summary
31-Dec 14 31-Dec 15 30-Sep 16 Book Value Available-for-Sale $ 1,484 $1,168 $963 Held-to-Maturity 516 416 348 "Locked-in" Gains (HTM) 15 11 8 Total Book Value $ 2,015 $1,596 $1,319 Available-for-Sale Unrealized Gains / (Losses) (5) (11) 5 Held-to-Maturity Unrealized Gains / (Losses) 4 1 6 Fair Market
Slide 21: Long-Term Financial Goals
Assets ~$6bn–$8bn Efficiency Ratio <60% ROATA ≥1.00% ROATCE 12%–14% Dividend Payout Ratio Approximation 30% Tier 1 Leverage 9% Long-Term Financial Goals
Slide 22: Investment Highlights
Investment Highlights 1 Trailing Twelve Months through 30-September-16. 2The most directly comparable GAAP measure is Return on Average Assets (ROAA). Please refer to the appendix for a reconciliation of non-GAAP financial metrics. Attractive markets of Colorado and Kansas City MSA Relationship bank
Slide 23: Appendix
Appendix 23 ii National Bank Holdings
Slide 24: Senior Management Team
Head of Business Services at Regions Financial, where he also led the transformation of wholesale lines of business Senior management roles in small business, commercial banking, private banking, corporate marketing and change management, and Management Operating Committee member at Bank of America;
Slide 25: Board of Directors
Title Past Experience Name Tim Laney Chairman, President and CEO Senior EVP and Head of Business Services of Regions Financial EVP and Management Operating Committee at Bank of America Ralph Clermont Lead Director / Chairman of the Audit and Risk Committee Managing Partner of the St. Louis office of
Slide 26: Guide to Common Sense Banking
GUIDE TO COMMON SENSE BANKING a OURPROMISE BANK WITH COMMON SENSE NBH Bank champions a new era of common sense banking by building relationships with local communities as the accountable, straight-shooting and insightful alternative to big box banking-as-usual HOW WE DELIVER ON OUR PROMISE We PUT WE
Slide 27: Reconciliation of Non-GAAP Measures
($ in millions, except per share) Reconciliation of Non-GAAP Measures 30-Sep-15 30-Sep-16 30-Sep-15 30-Sep-16 31-Dec-14 31-Dec-15 Return on Average Tangible Assets and Return on Average Tangible Equity: Net income 1.6 $ 8.3 $ 1.5 $ 13.1 $ 9.2 $ 4.9 $ Add: impact of core deposit intangible amortizati
Slide 28: Reconciliation of Non-GAAP Measures (cont'd)
($ in millions, except per share) Reconciliation of Non-GAAP Measures (cont’d) As of and for the three months ended 30-Sep-15 30-Sep-16 Common book value per share calculations: Total shareholders' equity 621.2 549.8 Divided by: ending shares outstanding 30,318,684 26,282,224 Common book value per s
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