National Bank Holdings Corporation (NYSE:NBHC) Q4 2022 Earnings Conference Call January 25, 2023 11:00 AM ET Company Participants Tim Laney - Chairman, President, and Chief Executive Officer Aldis Birkans - Chief Financial Officer Conference Call Participants Jeff Rulis - D.A. Davidson Kelly Motta - KBW Andrew Terrell - Stephens Andrew Liesch - Piper Sandler Brett Rabatin - Hovde Group Operator Good morning, everyone, and welcome to the National Bank Holdings Corporation 2022 Fourth Quarter Earnings Call. ...

Financial Position - As of September 30, 2022, the company had total assets of $7.9 billion, loans of $5.7 billion, deposits of $6.8 billion, and equity of $0.9 billion[187]. - The company completed the acquisition of Community Bancorporation on September 1, 2022, adding approximately $832.2 million in total assets and $734.5 million in deposits[188]. - The acquisition of Bancshares of Jackson Hole on October 1, 2022, added approximately $1.5 billion in total assets and $1.4 billion in deposits[189]. - Total shareholders' equity increased to $919,426 as of September 30, 2022, from $840,106 at the end of 2021[220]. - Total assets increased by $708.9 million to $7.9 billion from December 31, 2021, primarily due to the acquisition of RCB[232]. - Total deposits increased to $6.80 billion as of September 30, 2022, up from $6.23 billion as of December 31, 2021, representing a growth of 9.2%[280]. Income and Earnings - Net income for the nine months ended September 30, 2022, was $54.6 million, or $1.77 per diluted share, compared to $70.8 million, or $2.27 per diluted share, for the same period in the prior year[190]. - Net income for the three months ended September 30, 2022, was $15,839 million, a decrease from $22,769 million in the same period of 2021[221]. - Adjusted net income (non-GAAP) for the three months ended September 30, 2022, was $25,349 million, compared to $22,769 million in the same period of 2021[224]. - Net interest income for the three months ended September 30, 2022, was $69,091 million, up from $49,486 million in the same period of 2021[223]. - For the nine months ended September 30, 2022, net interest income was $175.8 million, up from $141.5 million in the same period of 2021, marking a 24% increase[301]. Loan Growth and Portfolio - The company generated record organic loan growth of 30.2% annualized, with total loans increasing by $1.2 billion, or 35.8% annualized, since December 31, 2021[196]. - The total loan portfolio increased to $5.72 billion, a 26.8% increase from $4.51 billion on December 31, 2021[252]. - The commercial loan portfolio grew by $761.1 million, or 32.2% annualized, from December 31, 2021, to September 30, 2022[253]. - Loan fundings reached a record $1.5 billion for the nine months ended September 30, 2022, with commercial loan fundings of $977.4 million[253]. - The originated commercial loan segment saw a growth of $478.0 million, or 15.4%, excluding the impact of acquisitions[253]. Asset Quality and Credit Losses - Non-performing loans to total loans remained stable at 0.26% as of September 30, 2022, compared to 0.24% in the previous year[211]. - The allowance for credit losses increased by $15.9 million to $65.6 million at September 30, 2022[232]. - The ACL to non-performing loans ratio was 447.72% as of September 30, 2022, indicating strong coverage[266]. - The allowance for credit losses (ACL) as of September 30, 2022, is $65.6 million, which is deemed adequate to cover estimated lifetime losses in the loan portfolio[276]. - The provision for credit losses was $12.7 million for the three months ended September 30, 2022, driven by record loan growth and higher reserve requirements[312]. Interest Income and Margin - Fully taxable equivalent net interest income totaled $175.8 million for the nine months ended September 30, 2022, an increase of $34.3 million, or 24.2%, compared to the same period in the prior year[204]. - Net interest margin increased to 3.93% for the three months ended September 30, 2022, compared to 2.95% in the same period of 2021[211]. - The FTE net interest margin widened by 108 basis points to 4.01% for the three months ended September 30, 2022, compared to 2.93% in the same period of 2021[292]. - The yield on earning assets increased by 107 basis points during the three months ended September 30, 2022, primarily due to rising federal funds rates and strategic deployment of excess cash[292]. Non-Interest Income and Expenses - Non-interest income decreased to $53.2 million for the nine months ended September 30, 2022, from $87.1 million for the same period in 2021, primarily due to lower mortgage banking income[204]. - Non-interest income totaled $17.4 million for the three months ended September 30, 2022, a decrease of 39.1% compared to $28.5 million for the same period in 2021[314]. - Mortgage banking income decreased by 73.1% to $4.5 million for the three months ended September 30, 2022, compared to $16.6 million in 2021[314]. - Non-interest expense increased by $2.6 million, or 5.1%, for the three months ended September 30, 2022, compared to the same period in 2021[316]. Capital and Ratios - As of September 30, 2022, the company maintained a tier 1 leverage ratio of 10.45% and a common equity tier 1 risk-based capital ratio of 12.75%[204]. - The ratio of ACL to total loans outstanding at period end was 1.15% as of September 30, 2022, compared to 1.11% as of September 30, 2021[277]. - The effective tax rate for the three months ended September 30, 2022, was 20.1%, slightly lower than 20.0% for the same period in 2021[317]. Shareholder Actions - The Board of Directors authorized a share repurchase program with a remaining authorization of $38.6 million as of September 30, 2022[329].

National Bank Holdings Corporation (NYSE:NBHC) Q3 2022 Earnings Conference Call October 28, 2022 11:00 AM ET Company Participants Tim Laney - Chairman, President and CEO Aldis Birkans - CFO Conference Call Participants Jeff Rulis - D.A. Davidson Kelly Motta - KBW Andrew Terrell - Stephens Inc. Andrew Liesch - Piper Sandler Operator Good morning, everyone. And welcome to the National Bank Holdings Corporation 2022 Third Quarter Earnings Call. My name is Keith and I will be your conference operator for today. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35654 NATIONAL BANK HOLDINGS CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of ...

National Bank Holdings Corporation (NYSE:NBHC) Q2 2022 Earnings Conference Call July 2, 2022 11:00 AM ET Company Participants Tim Laney ??? Chairman, President and Chief Executive Officer Aldis Birkans ??? Chief Financial Officer Conference Call Participants Jeff Rulis ??? D.A. Davidson Andrew Liesch ??? Piper Sandler Andrew Terrell ??? Stephens Inc. Kelly Motta ??? KBW Brett Rabatin ??? Hovde Group Operator Good morning, everyone. And welcome to the National Bank Holdings Corporation 2022 Second Quarter Ea ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35654 NATIONAL BANK HOLDINGS CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of ...

National Bank Holdings Corporation (NYSE:NBHC) Q1 2022 Earnings Conference Call April 19, 2022 11:00 AM ET Company Participants Timothy Laney ??? Chairman, President and Chief Executive Officer Aldis Birkans ??? Chief Financial Officer Conference Call Participants Brett Rabatin ??? Hovde Group, LLC Andrew Liesch ??? Piper Sandler Companies Jeffrey Rulis ??? D. A. Davidson & Co. Kelly Motta ??? Keefe, Bruyette & Woods, Inc. Andrew Terrell ??? Stephens Inc. Operator Good morning, everyone and welcome to the N ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35654 NATIONAL BANK HOLDINGS CORPORATION (Exact name of registrant as specified in its charter) Delaware 27-0563799 (State or ...

National Bank Holdings Corporation (NYSE:NBHC) Q4 2021 Earnings Conference Call January 20, 2022 11:00 AM ET Company Participants Tim Laney - President and CEO Aldis Birkans - CFO Conference Call Participants Jeff Rulis - D.A. Davidson Andrew Liesch - Piper Sandler Kelly Motta - KBW Brett Rabatin - Hovde Group John Walter - Stephens Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are designed to help you naviga ...

Part I. Financial Information [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements, including statements of financial condition, operations, and cash flows, with detailed accounting policy notes [Consolidated Statements of Financial Condition](index=7&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) As of September 30, 2021, total assets grew to $7.10 billion from $6.66 billion at year-end 2020, driven by increases in cash and investment securities Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $807,370 | $605,565 | | Investment securities (AFS & HTM) | $1,300,469 | $1,038,570 | | Loans, net | $4,372,605 | $4,293,949 | | **Total Assets** | **$7,100,991** | **$6,659,950** | | **Liabilities & Equity** | | | | Total deposits | $6,134,620 | $5,676,232 | | Total liabilities | $6,256,275 | $5,839,259 | | Total shareholders' equity | $844,716 | $820,691 | | **Total Liabilities & Equity** | **$7,100,991** | **$6,659,950** | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) For the nine months ended September 30, 2021, net income increased to $70.8 million, driven by a significant provision release for loan losses Key Performance Indicators (in thousands, except per share data) | Metric | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | Net Interest Income | $137,658 | $144,390 | | Provision (release) for loan losses | $(9,425) | $17,630 | | Non-interest Income | $87,149 | $106,901 | | Non-interest Expense | $147,325 | $157,752 | | **Net Income** | **$70,837** | **$61,422** | | **Diluted EPS** | **$2.27** | **$1.97** | - For the third quarter of 2021, net income was **$19.8 million**, a decrease from **$27.9 million** in Q3 2020, primarily due to a significant drop in mortgage banking income from **$34.9 million** to **$16.6 million** year-over-year[14](index=14&type=chunk) [Consolidated Statements of Cash Flows](index=12&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly improved to $144.9 million, while investing activities increased cash usage, and financing activities provided $417.7 million Cash Flow Summary (in thousands) | Activity | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $144,866 | $(59,755) | | Net cash used in investing activities | $(366,191) | $(206,464) | | Net cash provided by financing activities | $417,655 | $601,132 | | **Increase in cash and cash equivalents** | **$196,330** | **$334,913** | [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on accounting policies, investment and loan portfolios, credit losses, MSRs, regulatory capital, and derivatives - The company invested **$20.0 million** in Finstro Global Holdings Inc. and **$2.0 million** in Figure Technologies during the first nine months of 2021 as part of its digital financial ecosystem strategy for small and medium-sized businesses[45](index=45&type=chunk) - COVID-19 related loan modifications on deferral plans decreased significantly to **$0.9 million** as of September 30, 2021, down from **$173.6 million** at year-end 2020[62](index=62&type=chunk) - During Q3 2021, the company sold mortgage servicing rights (MSRs) on loans with **$1.3 billion** in unpaid principal balances, resulting in a **$1.3 million** gain[75](index=75&type=chunk) - On November 5, 2021, the Company issued a **$40.0 million** subordinated note with a fixed rate of **3.00%** for the first five years, maturing in 2031[156](index=156&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=59&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting **$70.8 million** net income, strategic actions, and changes in net interest margin, non-interest income, and expenses [Financial Condition](index=71&type=section&id=MD%26A_Financial_Condition) Total assets grew by $441.0 million to $7.1 billion, driven by increases in cash and investment securities, while deposits grew by $458.4 million Loan Portfolio Composition (in thousands) | Loan Category | Sep 30, 2021 | Dec 31, 2020 | % Change | | :--- | :--- | :--- | :--- | | Commercial (ex-PPP) | $2,931,650 | $2,788,546 | 5.1% | | PPP loans | $76,794 | $176,106 | (56.4)% | | Commercial real estate non-owner occupied | $670,927 | $631,996 | 6.2% | | Residential real estate | $665,502 | $658,659 | 1.0% | | Consumer | $18,031 | $19,006 | (5.1)% | | **Total loans** | **$4,421,760** | **$4,353,726** | **1.6%** | Deposit Composition (in thousands) | Deposit Type | Sep 30, 2021 | Dec 31, 2020 | % Change | | :--- | :--- | :--- | :--- | | Non-interest bearing demand | $2,447,099 | $2,111,045 | 15.9% | | Total transaction deposits | $5,257,779 | $4,690,100 | 12.1% | | Total time deposits | $876,841 | $986,132 | (11.1)% | | **Total deposits** | **$6,134,620** | **$5,676,232** | **8.1%** | [Asset Quality](index=81&type=section&id=MD%26A_Asset_Quality) Asset quality remained strong with non-performing loans decreasing by 37.0% to $12.8 million, and the allowance for credit losses providing a strong coverage ratio Non-Performing Assets (in thousands) | Metric | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Non-performing loans | $12,848 | $20,387 | | OREO | $4,325 | $4,730 | | **Total non-performing assets** | **$17,173** | **$25,134** | | Non-performing loans to total loans | 0.29% | 0.47% | - The company recorded a net provision release of **$9.4 million** for the nine months ended Sep 30, 2021, driven by strong asset quality and an improved economic outlook in the CECL model[242](index=242&type=chunk)[280](index=280&type=chunk) [Results of Operations](index=88&type=section&id=MD%26A_Results_of_Operations) Net income for the nine months ended September 30, 2021, was $70.8 million, driven by a provision release and lower non-interest expense, despite a narrowed net interest margin and decreased non-interest income Net Interest Margin Analysis (FTE) | Metric | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | Yield on earning assets | 3.14% | 3.96% | | Cost of interest bearing liabilities | 0.39% | 0.69% | | **Net Interest Margin** | **2.92%** | **3.48%** | - Non-interest income for the nine months ended Sep 30, 2021, decreased by **18.5%** YoY to **$87.1 million**, mainly due to a **33.2%** decline in mortgage banking income as refinance activity slowed[282](index=282&type=chunk) - Non-interest expense for the nine months ended Sep 30, 2021, decreased by **6.6%** YoY to **$147.3 million**, primarily due to a **$10.7 million** reduction in salaries and benefits from lower mortgage-related compensation[284](index=284&type=chunk) [Liquidity and Capital Resources](index=100&type=section&id=MD%26A_Liquidity_and_Capital_Resources) The company maintained strong liquidity with on-balance sheet liquidity increasing to $1.57 billion and capital ratios remaining well above regulatory requirements Key Capital Ratios (Consolidated) | Ratio | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Tier 1 leverage ratio | 10.4% | 10.7% | | Common equity tier 1 risk based capital | 14.6% | 14.7% | | Total risk based capital ratio | 15.5% | 15.8% | - The company repurchased **527,214 shares** for **$19.4 million** during Q3 2021, with **$55.6 million** remaining available under the **$75.0 million** repurchase program authorized in February 2021[297](index=297&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=68&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's interest rate risk model indicated an asset-sensitive position, with a +100 basis point rate shock projected to increase net interest income by 6.04% Net Interest Income Sensitivity | Hypothetical Rate Shift (bps) | % Change in Projected NII (Sep 30, 2021) | | :--- | :--- | | +200 | 12.11% | | +100 | 6.04% | | -25 | (0.17)% | - The company's interest rate risk model indicated an **asset-sensitive balance sheet** as of September 30, 2021[303](index=303&type=chunk) [Item 4. Controls and Procedures](index=68&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of September 30, 2021, with no material changes to internal controls over financial reporting - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were **effective** as of September 30, 2021[309](index=309&type=chunk) - No changes were made in the company's internal controls over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[310](index=310&type=chunk) Part II. Other Information [Legal Proceedings](index=69&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various litigation matters incidental to its business but does not believe any current proceedings will have a material adverse effect on its financial condition or results of operations - The company is not party to any legal proceedings expected to have a **material adverse effect** on its business, financial condition, or operations[313](index=313&type=chunk) [Risk Factors](index=69&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2020 - No **material changes** to the risk factors disclosed in the 2020 Form 10-K were reported[314](index=314&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=69&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2021, the company repurchased 528,352 shares at an average price of $36.72 per share, with $55.6 million remaining under its repurchase authorization Share Repurchase Activity (Q3 2021) | Period | Total Shares Purchased | Avg. Price Paid | Shares Purchased Under Plan | | :--- | :--- | :--- | :--- | | Aug 2021 | 230,742 | $36.84 | 229,604 | | Sep 2021 | 297,610 | $36.62 | 297,610 | | **Total Q3** | **528,352** | **$36.72** | **527,214** | - As of September 30, 2021, **$55.6 million** remained available for purchase under the **$75.0 million** stock repurchase program authorized in February 2021[316](index=316&type=chunk) [Other Information](index=69&type=section&id=Item%205.%20Other%20Information) There was no other information to report for this item during the quarter - No information was reported under this item[317](index=317&type=chunk) [Exhibits](index=70&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, debt agreements, and CEO/CFO certifications - Exhibits filed include CEO/CFO certifications (31.1, 31.2, 32), agreements related to a subordinated note issuance (4.1, 10.1), and XBRL data files[320](index=320&type=chunk)