National Bank Holdings Corporation · NYSE:NBHC
National Bank — Investor Presentation (August 2024)
41 slides from National Bank's investor presentation, Aug 16, 2024
Slide 1: Investor Presentation Q2 2024
Investor Presentation Q2 – 2024
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: About Non-GAAP Financial Measures
About Non-GAAP Financial Measures Certain of the financial measures and ratios we present, including “tangible assets,” “average tangible assets,” “return on average tangible assets,” “tangible common equity,” “average tangible common equity,” “return on average tangible common equity,” “tangible co
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 June 30, 2024. Includes one banking center shared by NBH Bank and BOJH Trust. (2)Represents a non-GAAP financial measure. ROAA and ROAE totaled 1.17% and 9.37% respectively. See Appendix for a reconciliation of these measures. (3)Excluding other intangible asset amortization Attractive Mark
Slide 6: 5-year Shareholder Returns vs. S&P 600 Regional Banks
(20%) (15%) (10%) (5%) 0% 5% 10% 15% 20% 25% Baseline NBH Outperformance $0.75 $0.80 $0.87 $0.94 $1.04 $0.55 2019 2020 2021 2022 2023 YTD24 Shareholder Returns Source: S&P Global Market Intelligence, FactSet Research Systems, Bloomberg; market data as of 6/30/2024 (1)Peer median of the following gro
Slide 7: Financial Performance
National Bank Holdings Financial Performance
Slide 8: Q2 2024 Financial Highlights
Deposits Approximately 79% FDIC insured deposits Capital Ratios 12.4% Common Equity Tier 1 Ratio Q2 2024 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 $2
Slide 9: Profitable Steady Growth
Profitable Steady Growth $80.4 $88.6 $93.6 $28.3 $142.0 $57.5 YE18 YE19 YE20 YE21 YE22 YE23 YTD24 Net Income Non-Adjusted Adjusted $2.55 $2.85 $3.01 $0.87 $3.72 $1.50 YE18 YE19 YE20 YE21 YE22 YE23 YTD24 EPS (Fully Diluted) Non-Adjusted Adjusted ($ in millions) 1.15% 1.42% 1.44% 1.37% 0.95% 1.57% 1.2
Slide 10: Growth Trends
Growth Trends $5.7 $5.9 $6.7 $7.2 $9.6 $9.9 $9.9 YE18 YE19 YE20 YE21 YE22 YE23 YTD24 Total Assets $4.1 $4.4 $4.2 $4.5 $7.2 $7.7 $7.7 $0.2 YE18 YE19 YE20 YE21 YE22 YE23 YTD24 Total Loans Non-PPP Loans PPP Loans $577.4 $651.4 $707.3 $728.8 $776.0 $860.3 $899.8 YE18 YE19 YE20 YE21 YE22 YE23 YTD24 ($ in
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 10.20% COMMON EQUITY TIER 1 RISK-BASED 12.41% TIER 1 RISK-BASED 12.41% TOTAL RISK-BASED 14.32% TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS(1) 9.35% Capital Ratios – YTD24 (1)Represents a non-GAAP financial measure. See Appendix for a reconciliation of these
Slide 13: Credit
National Bank Holdings CORPORATION" Credit
Slide 14: Uniquely Diversified $7.7 Billion Loan Portfolio
Uniquely Diversified $7.7 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 CRE Portfolio
Granular CRE Portfolio Hotel & Lodging 24% Multifamily 19% CML Const. 13% Retail 8% Warehouse & Ind. 9% All Other 7% CML A & D 4% Office 6% Nursing Home 4% 1-4 Family Const. 6% Office: - Average LTV of 47.7% - 1.4% of total loans Retail: - Average LTV of 59.3% - 2.1% of total loans Multi-Famil
Slide 16: Strong Credit Quality History
Strong Credit Quality History YE21 YE22 YE23 YTD24 Loan charge-offs 0.16% 0.17% 0.34% 0.29% 0.09% 0.06% 0.03% 0.15% 0.05% 0.05% 0.05% 0.02% YE21* YE22 YE23 2Q24 Non-performing loans Acquired non-performing loans OREO Non-performing Loans Non-performing Asset Composition Net Charge-Offs(1) Total Clas
Slide 17: Credit Loss Protection
Credit Loss Protection $96.5 Total Loan Loss Coverage Including Loan Marks 1.58%(1) ACL/Total Loans 1.25% Loan Marks/Total Loans 0.33%(1) $25.4 $121.9 All dollars in millions (1)Represents a non-GAAP financial measure ACL 6/30/2024 Loan Marks 6/30/2024 TOTAL 6/30/2024 17
Slide 18: Balance Sheet
ia National Bank Holdings Balance Sheet
Slide 19: Loan Composition and Quarterly Loan 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: $1.2 Billion Liquidity Portfolio
4.1% 10.1% 0.2% 85.6% Cash U.S. Treasury Other U.S. Agency Mortgage/Sponsored Debt High Quality Liquidity Portfolio: $1.2 Billion Liquidity portfolio duration of 4.0 years Portfolio used exclusively as an on-balance sheet source of liquidity: 42% unencumbered 58% pledged directly to client d
Slide 21: Granular Deposit Base
Granular Deposit Base No exposure to venture capital or crypto deposits Average total deposits increased $160.9 million, or 7.9% annualized, to $8.4 billion during 2Q24 Average total deposits increased $469.1 million, or 6.0%, to $8.3 billion over YTD23 The mix of transaction deposits to tot
Slide 22: Relationship Focused Deposit Base: $8.4 Billion
Relationship Focused Deposit Base: $8.4 Billion Approximately 79% 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
National Bank Holdings CORPORATION" 2UniFi
Slide 24: 2UniFi Platform Capabilities
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
National Bank Holdings CORPORATION"
Slide 26: Cambr Strategic Rationale
Strategic Rationale Cambr is a deposit acquisition and processing platform that is designed to (i) service banks (“Banks of Record”) in recordkeeping for core deposits received via exclusive relationships with embedded finance companies and (ii) allocate customer deposits in excess of FDIC insuran
Slide 27: Management Team
National Bank Holdings Management Team
Slide 28: Experienced Management Team
Experienced Management Team Nicole Van Denabeele EVP, Chief Accounting Officer • 20+ years of financial services experience • Controller at Polsinelli, PC • Senior Vice President, Assistant Controller at UMB Financial Corporation • Started career in public accounting at Deloitte, LLP Christopher Ran
Slide 29: Management & Directors Beneficial Ownership
Management & Directors NBHC MANAGEMENT & DIRECTORS BENEFICIAL OWNERSHIP(1) PERCENT OF CLASS(2) G. Timothy Laney 521,139 1.36% Aldis Birkans 91,942 0.24% Richard U. Newfield, Jr. 199,929 0.52% Angela Petrucci 32,428 0.08% Ralph W. Clermont 93,349 0.24% Robert E. Dean 34,814 0.09% Robin A. Doyle 4,030
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 3 3 CEO or President of Private or Public Company Other Public Board Experience Financial or Audit Background Financial Services Industry Marketing or Sales Background Community or Governmental Service Legal or Regula
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
Executive Compensation Program NBH’s executive compensation practices align management incentives with long-term shareholder interests Components of Executive Compensation (2023) 2023 Compensation Breakdown Additional Compensation Features Component Metrics Base Salary (Cash) Reviewed annually Ann
Slide 36: Doing Good - ESG Matters
“Doing Good” - Environmental, Social and Governance (ESG) Matters 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 pape
Slide 37: Appendix
ia National Bank Holdings a ae = ne: ees at 4 or i 7" ie ee 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.
Thank you.
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