National Bank Holdings Corporation · NYSE:NBHC
National Bank — Q4 2022 Earnings Presentation
36 slides from National Bank's earnings presentation, Jan 25, 2023
Slide 1: Investor Presentation Q4 2022
Investor Presentation Q4 – 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private of changes in accounting policies and practices; the share price of the Company’s stock; the Securities Litigation Reform Act of 1995. Forward-looking statements contain words such as
Slide 3: About Non-GAAP Financial Measures
About Non-GAAP Financial Measures Certain of the financial measures and ratios we present, including “tangible assets,” “return on equivalent basis. We believe that management and investors benefit from referring to these average tangible assets,” “tangible common equity,” “return on average tangibl
Slide 4: Table of Contents
Table of Contents Financial Performance 08 Credit 14 Balance Sheet 18 Management Team 22 Corporate Governance Overview 25 Appendix 32
Slide 5: Attractive Markets and Company Highlights
Attractive Markets Headquarters Company Highlights Denver, CO Banking Centers(1) 98 Listing NYSE: NBHC Balance Sheet 2022 Total Assets (mm) $9,573 Total Loans (mm) $7,220 Total Deposits (mm) $7,873 Key Ratios 2022 Common Equity Tier 1 10.5% Tier 1 Leverage 9.3% 4Q22 ROATA(2) 0.77% / 1.55%(3) 4Q22 RO
Slide 6: Recent Recognition
Recent Recognition U.S. News: Best Places to Live Rankings Fortress Balance #2 and #4 Sheet Colorado Springs, CO and Boulder, CO Market Presence in Top 5 Best Places to Live(1) Robust Profitability #3 Colorado Market Share (Among Local Banks)(2) Positioned in Attractive Markets #6 Premium Va
Slide 7: Shareholder Returns
Shareholder Returns Total Shareholder Returns For The Past Five Years (1/1/2018 through 12/31/2022) Net Income ($ in millions) Non-Adjusted $99.6 $88.6 $93.6 Adjusted $80.4 90% $28.3 $67.8 $6.3 (1) NBHC KRX Regional Bank Index $35.0 $71.3 70% $61.5 $20.4 $14.6 (2) (2) (2) 50% YE17 YE18 YE19 YE20 YE2
Slide 8: Financial Performance
_ National Bank Holdings CORPORATION” Financial Performance
Slide 9: 2022 Financial Highlights
2022 Financial Highlights Net Income FTE net interest income totaled $272.3 million, an increase of $80.0 million, or $71.3 million / $99.6 million adjusted(2) 41.6%, over 2021 Capital Ratios FTE net interest margin widened 38 basis points to 4.39%, over 3Q22, due to an 10.5% Common Equity Tier
Slide 10: Profitable Steady Growth
Profitable Steady Growth Net Income Pre-Provision Net Revenue FTE(1) EPS (Fully Diluted) ($ in millions) ($ in millions) $143.5 $132.1 $3.01 $3.05 Non-Adjusted $99.6 $15.1 Non-Adjusted $2.85 $88.6 $93.6 $112.9 $110.8 Adjusted $2.55 Adjusted $80.4 $0.87 $28.3 $2.16 $67.8 $83.4 $0.21 $6.3 $53.7 $54.7
Slide 11: Growth Trends
Growth Trends Total Assets Total Loans Tangible Common Equity(3) ($ in billions) ($ in billions) ($ in millions) (1) Non-PPP Loans $9.6 PPP Loans (2) $7.2 $776.0 $728.8 $707.3 $7.2 $651.4 $6.7 $577.4 $5.9 $5.7 $4.5 $4.4 $4.4 $4.1 $478.9 $482.0 $0.2 $4.8 $4.6 $3.2 $2.9 $4.2 YE16 YE17 YE18 YE19 YE20 Y
Slide 12: 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 13: Regulatory Capital
Regulatory Capital Capital Ratios – 4Q22 $285 million in excess capital over 7.0% common TIER 1 LEVERAGE 9.3% equity tier 1 risk-based regulatory requirement COMMON EQUITY TIER 1 RISK-BASED 10.5% TIER 1 RISK-BASED 10.5% Double-leverage ratio 94.7% TOTAL RISK-BASED 12.3% TANGIBLE COMMON EQUITY TO
Slide 14: Credit
_ National Bank Holdings CORPORATION”
Slide 15: Uniquely Diversified $7.2 Billion Loan Portfolio
Uniquely Diversified $7.2 Billion Loan Portfolio(1) Concentrations Granular and Well-Diversified Loan Portfolio Consumer 18% C&I and Owner Self-imposed concentration limits ensure a granular and diverse loan portfolio and Occupied protect against downside risk to any particular industry or real es
Slide 16: Strong Credit Quality History
Strong Credit Quality History Allowance for loan losses coverage equal to 542% of non-performing loans Acquisition fair value marks on acquired loans total $32.7 million, 1.8% of acquired loans or 0.45% of total loans Non-performing Loans ($ in millions) Non-performing Asset Composition 0.49% 0.
Slide 17: Allowance For Credit Loss
Allowance For Credit Loss Allowance to total loan coverage of 1.24% provides coverage for economic uncertainty ACL/Total Loans ACL/Total Loans 1.10% 1.24% $89.6 $49.7 ACL(1) ACL(1) 12/31/2021 12/31/2022 All dollars in millions (1)Investment securities portfolio consists of U.S. agency mortgage bac
Slide 18: Balance Sheet
BE National Bank Holdings CORPORATION” Balance Sheet
Slide 19: Solid Loan Growth
Solid Loan Growth Total Loan Fundings(1) Quarterly Loan Fundings Loan Composition ($ in billions) ($ in millions) ($7.2 Billion) $631.6 $2.0 $492.5 $497.3 Owner $475.4 Occupied CRE $1.5 $419.7 18% C&I $1.2 $1.2 $1.2 $1.0 41% $0.9 CRE 23% Resi Mortgage FY16 FY17 FY18 FY19 FY20 FY21 FY22 4Q21 1Q22 2Q2
Slide 20: High Quality, Highly Liquid Investment Portfolio
High Quality, Highly Liquid Investment Portfolio $1.4 Billion Investment Portfolio(1) 0.2% 99.8% of portfolio is U.S. agency/sponsored 9.4% agency and U.S. Treasury backed U.S. Agency/Sponsored Agency MBS 4Q22 yield of 1.94% 41.5% U.S. Agency/Sponsored Agency CMO 48% of portfolio in Held-to-Ma
Slide 21: Low Cost Transaction Deposits
Low Cost Transaction Deposits The Rock Canyon Bank acquisition added $734.5 million of total deposits, including $653.0 million of transaction deposits and $81.5 million of time deposits on September 1, 2022. The Bank of Jackson Hole acquisition added $1.4 billion of total deposits, including $1
Slide 22: Management Team
_ National Bank Holdings CORPORATION” Management Team
Slide 23: Experienced Management Team
Experienced Management Team Tim Laney Aldis Birkans Chairman, President & CEO Chief Financial Officer (41 years in banking) (24 years in financial industry) • Head of Business Services at Regions Financial, where he also led the transformation • Senior Vice President, Treasurer at NBHC of wholesale
Slide 24: Management & Directors Beneficial Ownership
Management & Directors Beneficial Ownership (as of 12/31/22) NBHC MANAGEMENT & DIRECTORS BENEFICIAL OWNERSHIP(1) PERCENT OF CLASS(2) G. Timothy Laney 514,148 1.36% Aldis Birkans 66,282 0.18% Richard U. Newfield, Jr. 167,414 0.44% Angela Petrucci 17,683 0.05% Ralph W. Clermont 84,143 0.22% Robert E.
Slide 25: Corporate Governance
HH National Bank Holdings CORPORATION” Corporate Governance
Slide 26: Best Practices In Governance and Compensation
Best Practices In Governance and Compensation NBHC’s corporate governance policies and executive compensation practices support our business and align with best practices Corporate Governance Executive Compensation Lead Independent Director with robust role and responsibilities Provide the major
Slide 27: NBHC Board of Directors
NBHC Board of Directors G. Timothy Laney Robust Lead Director President, CEO and Chairman Former Sr Executive VP & Head of Business Responsibilities Services at Regions Financial 24-year tenure at Bank of America, and a member of Bank of America’s Management Operating Committee Mr. Clermont
Slide 28: Board Qualifications and Skills
NBHC Board Represents a Diverse Range of Qualifications and Skills Experience or Number of Directors Expertise CEO or President of Private or Public 5 Company Experienced leaders capable of overseeing Other Public Board Experience 4 execution and challenging management Financial or Audit Background
Slide 29: 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 NBHC Audit and Risk Committee is responsible for oversight Employs detection and response mechanisms designed to Evolving nature
Slide 30: Executive Compensation Program
Executive Compensation Program NBH’s executive compensation practices align management incentives with long-term shareholder interests Components of Executive Compensation (2021) Compensation Metrics Tied to Long-Term Strategy Component Metrics Link to Strategy Base Salary Among other things, attr
Slide 31: Environmental, Social and Governance (ESG) Matters
Environmental, Social and Governance (ESG) Matters NBH’s long-standing commitment to ESG in all of its business activities Committed to using environmentally friendly office products and materials and optimizing our office and banking center space. Environmental Continued investment in our mobil
Slide 32: Appendix
_ National Bank Holdings CORPORATION” Appendix
Slide 33: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures ($ in millions, except per share) As of and for the three months ended As of and for the years ended Return on Average Tangible Assets and Return on Average Tangible Equity 31-Dec-22 31-Dec-22 31-Dec-21 31-Dec-20 31-Dec-19 31-Dec-18 31-Dec-17 31-Dec-16 Net income
Slide 34: Reconciliation of Non-GAAP Measures (cont'd)
Reconciliation of Non-GAAP Measures (cont’d) ($ in millions, except per share) As of and for the three months ended As of and for the years ended Efficiency Ratio and Pre-Provision Net Revenue 31-Dec-22 31-Dec-22 31-Dec-21 31-Dec-20 31-Dec-19 31-Dec-18 31-Dec-17 31-Dec-16 Net interest income $ 95.1
Slide 35: Reconciliation of Non-GAAP Measures (cont'd)
Reconciliation of Non-GAAP Measures (cont’d) ($ in millions, except per share) As of and for the years ended Tangible Common Book Value Ratios 31-Dec-22 31-Dec-21 31-Dec-20 31-Dec-19 31-Dec-18 31-Dec-17 31-Dec-16 Total shareholders' equity $ 1,092.2 $ 840.1 $ 820.7 $ 766.9 $ 695.0 $ 532.4 $ 536.2 Le
Slide 36: Thank you.
_ National Bank Holdings CORPORATION”
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