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 Earnings Call. My name is Kyle 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, taxes, 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 this date of this call. And National Bank Holdings Corporation undertake 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
Thanks Kyle. Good morning. And thank you for joining us. As we discuss National Bank Holdings second quarter 2022 financial results. I'm joined by Aldis Birkans, our Chief Financial Officer. And our focus on small and medium sized businesses operating in high performing U.S. markets continues to produce solid results. Our teams delivered another record quarter of loan fundings driving annualized loan growth of 12.3%. We remain prudent in our underwriting.
We continue to work with businesses whose balance sheets are very strong and well positioned for economic shocks. To that end, we ended the quarter with record low non-performing assets and positive asset quality trends across the board. Furthermore, if we took the cumulative losses, the cumulative losses from our recent stress tests using assumptions consistent with the severely adverse scenario used in the 2022 DFAS, we would operate with a Tier 1 leverage ratio of approximately 9%. Our focus on earning the full relationship of our clients resulted in attractive growth in transaction deposits and treasury management fees.