National Bank Holdings Corporation · NYSE:NBHC
National Bank — Q1 2025 Earnings Presentation
41 slides from National Bank's earnings presentation, May 2, 2025
Slide 1: Investor Presentation Q1 2025
Investor Presentation Q1 – 2025
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. These statements do not discuss historical facts but instead relate to expectations, beliefs, plans, predictions, forecasts, objectives, assump
Slide 3: About Non-GAAP Financial Measures
About Non-GAAP Financial Measures Certain of the financial measures and ratios we present, including “adjusted return on average assets,” “tangible assets,” “return on average tangible assets,” “adjusted return on average equity,” “tangible common equity,” “return on average 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
(1)As of March 31, 2025. Includes one banking center shared by NBH Bank and BOJH Trust. (2)Represents a non-GAAP financial measure. ROAA and ROAE totaled 0.99% and 7.42% respectively. See Appendix for a reconciliation of these measures. (3)Excluding other intangible asset amortization. Attractive Ma
Slide 6: Shareholder Returns
(5%) 0% 5% 10% 15% 20% 25% Peer Median Baseline NBH Outperformance $0.80 $0.87 $0.94 $1.04 $1.12 $0.29 2020 2021 2022 2023 2024 2025 Shareholder Returns Source: S&P Global Market Intelligence, FactSet Research Systems, Bloomberg; market data as of 3/31/2025 (1)Peer median of the following group of 5
Slide 7: Financial Performance
National Bank Holdings Financial Performance
Slide 8: Q1 2025 Financial Highlights
Deposits Approximately 78% FDIC insured deposits Capital Ratios 13.61% Common Equity Tier 1 Ratio Q1 2025 Financial Highlights (1) Represents a non-GAAP financial measure. See Appendix for a reconciliation of these measures. (2)Excluding other intangible asset amortization ▪ Quarterly net income of
Slide 9: Profitable Steady Growth
Profitable Steady Growth $80.4 $88.6 $93.6 $28.3 $142.0 $118.8 $24.2 YE19 YE20 YE21 YE22 YE23 YE24 1Q25 Net Income Non-Adjusted Adjusted $123.9 $5.1 (1) $2.55 $2.85 $3.01 $0.87 $3.72 $3.08 $0.63 YE19 YE20 YE21 YE22 YE23 YE24 1Q25 EPS (Fully Diluted) Non-Adjusted Adjusted $0.14 $3.22 (1) ($ in millio
Slide 10: Growth Trends
Growth Trends $5.9 $6.7 $7.2 $9.6 $9.9 $9.8 $10.1 YE19 YE20 YE21 YE22 YE23 YE24 1Q25 Total Assets $4.4 $4.2 $4.5 $7.2 $7.7 $7.8 $7.6 $0.2 YE19 YE20 YE21 YE22 YE23 YE24 1Q25 Total Loans Non-PPP Loans PPP Loans $651.4 $707.3 $728.8 $776.0 $860.3 $961.8 $988.1 YE19 YE20 YE21 YE22 YE23 YE24 1Q25 ($ in b
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 TIER 1 LEVERAGE 10.89% COMMON EQUITY TIER 1 RISK-BASED 13.61% TIER 1 RISK-BASED 13.61% TOTAL RISK-BASED 15.49% TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS(1) 10.13% Capital Ratios – 1Q25 (1)Represents a non-GAAP financial measure. See Appendix for a reconciliation of these
Slide 13: Credit
Credit
Slide 14: Uniquely Diversified $7.6 Billion Loan Portfolio
Uniquely Diversified $7.6 Billion Loan Portfolio Concentrations ▪ Self-imposed concentration limits ensure a granular and diverse loan portfolio and protect against downside risk to any particular industry or real estate sector ▪ Individual industry sectors are limited to no more than 15% of total l
Slide 15: Granular Commercial Real Estate Portfolio
Granular Commercial Real Estate Portfolio Hotel & Lodging 27% Multifamily 19% CML Const. 7% Retail 9% Warehouse & Ind. 12% All Other 8% CML A & D 3% Office 6% Nursing Home 2% 1-4 Family Const. 7% ▪ Office: - Average LTV of 46% - 1.3% of total loans ▪ Retail: - Average LTV of 59% - 1.9% of total loan
Slide 16: Strong Credit Quality History
Strong Credit Quality History YE22 YE23 YE24 1Q25 Loan charge-offs 0.17% 0.34% 0.41% 0.06% 0.37% 0.03% 0.05% 0.08% 0.05% 0.05% 0.01% 0.01% YE22 YE23 YE24 1Q25 Non-performing loans Acquired non-performing loans OREO 0.46% Non-performing Loans Non-performing Asset Composition Net Charge-Offs(1) Total
Slide 17: Credit Loss Protection
Credit Loss Protection $90.2 Total Loan Loss Coverage Including Loan Marks 1.46%(1) ACL/Total Loans 1.18% Loan Marks/Total Loans 0.28%(1) $21.5 $111.7 All dollars in millions (1)Represents a non-GAAP financial measure ACL 3/31/2025 Loan Marks 3/31/2025 TOTAL 3/31/2025 17
Slide 18: Balance Sheet
Ha National Bank Holdings Balance Sheet
Slide 19: Loan Composition and Quarterly Fundings
▪ Portfolio built on a relationship-banking strategy, with emphasis on depository and treasury management relationships ▪ Self-imposed concentration limits; individual industry sectors are limited to no more than 15% of total loan commitments, with the majority being 10% or less ▪ Industries requiri
Slide 20: High Quality Liquidity Portfolio: $1.4 Billion
11.2% 8.6% 0.2% 80.0% Cash U.S. Treasury Other U.S. Agency Mortgage/Sponsored Debt High Quality Liquidity Portfolio: $1.4 Billion ▪ Liquidity portfolio duration of 3.5 years ▪ Portfolio used exclusively as an on-balance sheet source of liquidity: ▪ 50% unencumbered ▪ 50% pledged directly to client d
Slide 21: Granular Deposit Base
Granular Deposit Base ▪ No exposure to venture capital or crypto deposits ▪ Total deposits increased $186.3 million to $8.4 billion during 1Q25 ▪ Transaction deposits increased $147.7 million to $7.4 billion during 1Q25 ▪ The mix of transaction deposits to total deposits was 87.4% Low Cost Deposits
Slide 22: Relationship Focused Deposit Base: $8.4 Billion
Relationship Focused Deposit Base: $8.4 Billion ▪ Approximately 78% FDIC insured ▪ Granular deposit base: - Average deposit balance on full relationship basis just $50 thousand - Average deposit per account $26 thousand ▪ Approximately $0.5 billion of deposits collateralized ▪ No concentrations to a
Slide 23: 2UniFi
2UniFi
Slide 24: 2UniFi Platform Capitals
Financial Capital Social Capital Technical Capital Cultural Capital Operational Efficiency FDIC insured acct., protected deposits, treasury management, recurring billing, invoicing Improved operating information, financial statement preparation, marketplace opportunities Cash Flow Analysis, predicti
Slide 25: Cambr
Cambr
Slide 26: Cambr Strategic Rationale
Strategic Rationale ▪ Cambr offers the use of a deposit administration platform (the Cambr platform) to various depository institutions, each known as a Bank of Record, that hold the deposits of individual clients. Cambr utilizes the Cambr platform to facilitate the placement of the Bank of Record d
Slide 27: Management Team
National Bank Holdings Management Team
Slide 28: Experienced Management Team
Experienced Management Team Nicole Van Denabeele Chief Financial Officer (21 years in financial industry) • Previously EVP, Chief Accounting Officer at NBHC • Controller at Polsinelli, PC • Senior Vice President, Assistant Controller at UMB Financial Corporation • Started career in public accounting
Slide 29: Management & Directors Beneficial Ownership
Management & Directors NBHC MANAGEMENT & DIRECTORS BENEFICIAL OWNERSHIP(1) PERCENT OF CLASS(2) G. Timothy Laney 505,198 1.31% Aldis Birkans 107,845 0.28% Nicole Van Denabeele 13,525 0.04% Richard U. Newfield, Jr. 188,808 0.49% Angela Petrucci 36,554 0.10% Dan Sznewajs 1,186 0.01% Ralph W. Clermont 7
Slide 30: Corporate Governance
National Bank Holdings Corporate Governance
Slide 31: Best Practices In Governance and Compensation
Best Practices In Governance and Compensation Corporate Governance ✓ Lead Independent Director with robust role and responsibilities ✓ Majority independent Board ✓ No short-selling, hedging, or pledging of NBHC shares (applies to all NBHC and NBH Bank insiders) ✓ Annual election of Board members and
Slide 32: Board Directors and Lead Director Responsibilities
Fred J. Joseph ▪ Financial services regulator for 30 years as the Banking and Securities Commissioner for the State of Colorado ▪ Member of the Investor Issues Committee for FINRA A N I Compensation Independent Governance & Nominating Committee Chair Audit & Risk Appointed within the last five years
Slide 33: Board Qualifications and Skills
NBHC Board Represents a Diverse Range of Qualifications and Skills 4 4 9 8 5 8 4 3 Gupta Joseph Spring Zeile Clermont Zeile Sobers Laney Sobers Spring Zeile Experience or Expertise Number of Directors Experienced leaders capable of overseeing execution and challenging management Critical industry kn
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 Evolving nature and complexity of the threats from organized cybercriminals and hackers NBHC Audit and Risk Committee is responsi
Slide 35: Executive Compensation Program
Long-Term Incentive Award 42% Annual Cash Incentive Award 31% Base Salary 27% Executive Compensation Program NBH’s executive compensation practices align management incentives with long-term shareholder interests Components of Executive Compensation (2024) 2024 Compensation Breakdown Additional Comp
Slide 36: Doing Good At NBH
Doing Good At NBH Environmental ▪ Committed to using environmentally friendly office products and materials and optimizing our office and banking center space. ▪ Continued investment in our mobile and digital platforms, resulting in a reduction in paper and fuel emissions. ▪ Providing financing for
Slide 37: Appendix
Ha National Bank Holdings aa ae = ne: ines fl 4 a i al eee ee Appendix
Slide 38: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures ($ in millions, except per share) (1) 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 (2) Represents non-recurring loss on security sales in Q4 2024 38
Slide 39: Reconciliation of Non-GAAP Measures (cont'd)
Reconciliation of Non-GAAP Measures (cont’d) ($ in millions, except per share) 39 (1) Represents a non-GAAP financial measure. YE18 and YE22 adjusted for $8.0 million and $15.1 million of non-recurring acquisition-related expenses, respectively. YE24 and 4Q24 adjusted for $6.6 million of non-recurri
Slide 40: Reconciliation of Non-GAAP Measures (cont'd)
Reconciliation of Non-GAAP Measures (cont’d) ($ in millions, except per share) 40
Slide 41: Thank you.
Thank you.
National Bank Holdings — Q1 2025 Earnings Presentation on 6ix