National Bank Holdings Corporation (NYSE:NBHC) Q1 2023 Earnings Conference Call April 20, 2023 11:00 AM ET
Company Participants
Tim Laney - Chairman, President & CEO
Aldis Birkans - CFO
Conference Call Participants
Clark Wright - 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 2023 First Quarter Earnings Call. My name is Anna, and I will 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, access and non-interest 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 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 [Technical Difficulty] National Bank Holdings Corporation's Chairman, President and CEO, Mr. Tim Laney.
Tim Laney
Thank you, Anna. Good morning, and welcome to National Bank Holdings first quarter 2023 earnings call. I'm joined by Aldis Birkans, our Chief Financial Officer. We delivered record net income during the quarter and a record return on tangible common equity of 20.86%. We maintained a net interest margin of 4.39% as a result of loan pricing discipline, offsetting the rise in cost of deposits. We benefit from a granular and well-diversified deposit base with a cost of funds coming in at 90 basis points.
The loan portfolio performed extremely well during the quarter with annualized charge-offs of just 1 basis point and non-performing loans of just 13 basis points. We continue to build capital during the quarter, with CET1 of 11.32%. After the quarter, on April 3, we acquired Cambr Solutions. Cambr diversifies our funding and fee income while giving us the ability to grow FDIC insured deposits with very little incremental overhead. We look forward to discussing Cambr in greater detail during Q&A.