NBHC
Investor Presentation
Q3 - 2024
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 common equity to tangible assets," "loan marks/total loans," "total loan loss coverage including loan marks," "net interest income, FTE," "net interest margin, FTE," "adjusted non-interest expense," "non-interest expense adjusted for other intangible asset amortization and acquisition-related expenses," "non-interest expense, adjusted for acquisition-related expenses," "efficiency ratio FTE," "efficiency ratio adjusted for other intangible asset amortization and acquisition-related expenses FTE," "adjusted net income," "adjusted earnings per share - diluted," "net income adjusted for the impact of other intangible asset amortization expense and acquisition-related expenses, after tax," "net income excluding other intangible asset amortization, after tax," "net income excluding the impact other intangible asset amortization, after tax," "adjusted return on average tangible assets," "adjusted return on average tangible common equity," "pre-provision net revenue," "pre-provision net revenue, FTE," and "pre-provision net revenue FTE, adjusted for acquisition-related expenses," are supplemental measures that are not required by, nor presented in accordance with, U.S. generally accepted accounting principles (GAAP). We refer to these financial measures and ratios as "non-GAAP financial measures." We consider the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in
evaluating period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenditures or assets that we believe are not indicative of our primary business operating results or by presenting certain metrics on a fully taxable equivalent basis. We believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present and future periods. These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and you should not rely on non-GAAP financial measures alone as measures of our performance. The non-GAAP financial measures we present may differ from non-GAAP financial measures used by our peers or other companies. We compensate for these limitations by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance.
A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included in the appendix.
3
Table of Contents
Financial Performance
07
Credit
13
Balance Sheet
18
2UniFi
23
Cambr
25
Management Team
27
Corporate Governance
30
Appendix
37
Attractive Markets
Company Highlights
Headquarters
Denver, CO
Banking Centers(1)
94
Listing
NYSE: NBHC
Balance Sheet
3Q24
Total Assets (mm)
$9,993
Total Loans (mm)
$7,714
Total Deposits (mm)
$8,497
Key Ratios
3Q24
Common Equity Tier 1
12.88%
Tier 1 Leverage
10.44%
ROATA(2)
1.43%
ROATCE(2)
14.84%
37 banking centers
‒#3 Colorado Springs and #10 Boulder in Best Places to Live (U.S. News 2024)
‒#4 Best Economy in the U.S. (U.S. News 2024)
‒#6 in Hottest U.S. Housing Markets (U.S. News 2024)
‒#7 in Best States to Start a Business (WalletHub 2024)
14 banking centers across Utah, New Mexico, and Idaho
2 commercial banking locations in Texas
‒Utah: #1 in Best States to Start a Business (WalletHub 2024)
‒Idaho: #2 Best Economy in the U.S. (U.S. News 2024)
‒Utah: #3 Best Economy in the U.S. (U.S. News 2024)
‒Texas: #6 Best Economy in the U.S. (U.S. News 2024)
32 banking centers
‒Kansas City #1 Hottest Housing Markets (U.S. News 2024)
‒Overland Park, KS - central hub for the #1 county in Kansas by household income and projected population growth(1)
‒Overland Park, KS #7 on Top 100 Best Places to Live (Livability 2024)
‒Kansas City #9 Best Markets for First-Time Homebuyers (Zillow 2024)
9 banking centers(2)
‒Wyoming: #1 in State Business Tax Climate Index (Tax Foundation 2023)
‒Wyoming: #1 Tax Friendly state for middle income families (Kiplinger 2023)
Net Interest Margin FTE(2)
3.87%
ACL / Loans
1.23%
Efficiency Ratio FTE(2)(3)
57.65%
(1)As of September 30, 2024. Includes one banking center shared by NBH Bank and BOJH Trust.
(2)Represents a non-GAAP financial measure. ROAA and ROAE totaled 1.32% and 10.33% respectively. See Appendix for a reconciliation of these measures.
(3)Excluding other intangible asset amortization
(1)Ranking based on aggregate population growth for 2022-2027
(2)Includes one banking center shared by NBH Bank and BOJH Trust
5
Shareholder Returns
5-year Performance of NBH Shareholder Returns vs. S&P 600 Regional Banks(1)
Net Income
$142.0
40%
($ in millions)
30%
Baseline
NBH Outperformance
Non-Adjusted
Adjusted
$93.6
$99.6
$90.6
$88.6
$80.4
$28.3
20%
16.9%
$71.3
10%
YE19
YE20
YE21
YE22 (2)
YE23
YTD24
0%
Historical Dividend Per Share
(10%)
CAGR: 9%
$1.04
$0.87
$0.94
$0.83
$0.75
$0.80
(20%)
2019
2020
2021
2022
2023
YTD24
Dividend Payout Ratio Target
30 - 40%
of core earnings
Source: S&P Global Market Intelligence, FactSet Research Systems, Bloomberg; market data as of 9/30/2024
(1)Peer median of the following group of 58 regional banks included in the S&P Small Cap 600 Index, not including NBHC: ABCB, AUB, AX, BANC, BANF, BANR, BHLB, BKU, BOH, BRKL, CASH, CATY, CBU, CFFN, CHCO, CPF, CUBI, CVBF, DCOM, EGBN, FBK, FBNC, FBP, FCF, FFBC, FHB, FULT, HAFC, HFWA, HOPE, HTH, IBTX, INDB, LKFN, NBTB, NWBI, OFG, PFBC, PFS, PPBI, PRK, RNST, SBCF, SBSI, SFBS, SFNC, STBA, STEL, TBBK, TFIN, TMP, TRMK, TRST, UCB, VBTX, WABC, WAFD, WSFS
(2)Represents a non-GAAP financial measure. See Appendix for a reconciliation of these measures.
6
Financial Performance
Q3 2024 Financial Highlights
Net Income $33.1 million
3.87% Net interest margin FTE(1)
Capital Ratios
12.88% Common Equity Tier 1 Ratio
Deposits
Approximately 78% FDIC insured deposits
Loans
Loans outstanding of $7.7 billion
ACL / Loans
1.23%
Expense
57.7% efficiency ratio FTE(1)(2)
(1)Represents a non-GAAP financial measure. See Appendix for a reconciliation of these measures.
(2)Excluding other intangible asset amortization
8
Profitable Steady Growth
Net Income
$142.0
Pre-Provision Net Revenue FTE(1)
($ in millions)
($ in millions)
$190.0
Non-Adjusted
$99.6
$132.1
$143.5
Adjusted
$88.6
$93.6
$90.6
$112.9
$15.1
$120.5
$80.4
$28.3
$110.8
$67.8
$83.4
$128.4
$6.3
$61.5
$71.3
YE18 (1) YE19
YE20
YE21
YE22 (1) YE23
YTD24
YE18 YE19
YE20
YE21 YE22(1) YE23 YTD24
ROATA(1)
ROATCE(1)
Non-Adjusted
Non-Adjusted
18.23%
Adjusted
1.44%
1.57%
Adjusted
14.14%
1.42%
1.37%
13.75%
1.32%
1.33%
13.07%
13.27%
1.26%
12.76%
12.87%
1.15%
11.60%
0.95%
9.91%
YE18 (1)
YE19
YE20
YE21
YE22 (1)
YE23
YTD24
YE18 (1)
YE19
YE20
YE21
YE22(1)
YE23
YTD24
(1)Represents a non-GAAP financial measure. See Appendix for a reconciliation of these measures.
EPS (Fully Diluted)
$3.72
Non-Adjusted
$2.85
$3.01
$3.05
Adjusted
$2.55
$0.87
$2.36
$2.16
$0.21
$1.95
$2.18
YE18(1)
YE19
YE20
YE21
YE22 (1)
YE23
YTD24
Efficiency Ratio FTE(1)
Non-Adjusted
Excluding other intangible
asset amortization
69.4%
61.6%
60.9%
63.4%
62.2%
62.2%
56.0%
68.6%
61.1%
60.6%
63.0%
59.3%
57.1%
54.3%
YE18
YE19
YE20
YE21
YE22
YE23
YTD24
9
Growth Trends
Total Assets
Total Loans
Tangible Common Equity(3)
($ in billions)
($ in billions)
($ in millions)
$9.6(1)
$9.9
$9.9
Non-PPP Loans
PPP Loans
$946.4
$7.7
$7.7
$860.3
$7.2 (2)
$7.2
$776.0
$707.3
$728.8
$6.7
$651.4
$5.7
$5.9
$577.4
$4.1
$4.4
$4.4
$4.5
$0.2
$4.2
YE18
YE19
YE20
YE21
YE22
YE23
YTD24
YE18
YE19
YE20
YE21
YE22
YE23
YTD24
YE18
YE19
YE20
YE21
YE22
YE23
YTD24
10
Trust and Wealth Partners
500+
$970mm
High Net
AUM
Worth Clients
11
Disclaimer
National Bank Holdings Corporation published this content on October 30, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on October 30, 2024 at 05:00:05.339.