National Bank Holdings Corporation (NYSE:NBHC) Q3 2023 Results Conference Call October 25, 2023 11:00 AM ET

Company Participants

Tim Laney - Chairman, President & CEO

Aldis Birkans - EVP & CFO

Conference Call Participants

Jeff Rulis - D.A. Davidson

Kelly Motta - KBW

Andrew Terrell - Stephens

Andrew Liesch - Piper Sandler

Operator

Good morning, everyone, and welcome to the National Bank Holdings Corporation 2023 Third Quarter Earnings Call. My name is Marjorie, and I'll be your conference operator for today. At this time, all participants are in a listen-only mode. We will conduct a question-and-answer session following the prepared remarks. As a reminder, this conference is being recorded for replay purposes.

I would like to remind you that this conference call will contain forward-looking statements, including, but not limited to statements regarding the Company's strategy, loans, deposits, capital, net interest income, non-interest income, margins, allowance, tax and noninterest expense.

Actual results could differ materially from those discussed today. These forward-looking statements are subject to risks, uncertainties and other factors, which are disclosed in more detail in the Company's most recent filings with the U.S. Securities and Exchange Commission. These statements speak only as of the date of this call, and National Bank Holdings Corporation undertakes no obligation to update or revise these statements.

In addition, the call today will reference certain non-GAAP measures, which National Bank Holdings Corporation believes provides useful information for investors. Reconciliations of these non-GAAP financial measures to the GAAP measures are provided in the news release posted on the Investor Relations section of www.nationalbankholdings.com.

It is now my pleasure to turn the call over and introduce National Bank Holdings Corporation's Chairman, President and CEO, Mr. Tim Laney. Please go ahead, sir.

Tim Laney

Good morning and thank you for joining us as we discuss National Bank Holdings' third quarter 2023 financial results. I'm joined by Aldis Birkans, our Chief Financial Officer.

We delivered a 10.8% increase in earnings for the quarter with year-over-year pre-provision revenues growing 54.6% while doubling net income during the same period. We continue to build capital, ending the quarter with a CET1 ratio of 11.61% and delivering a healthy 18.38% return on tangible common equity.

I'll add that we continue to be pleased with our asset quality with just 1 basis point of charge-offs for the quarter. Further, we expect to reduce nonaccruals during the fourth quarter, having already experienced a nice reduction during the first three weeks of the fourth quarter.