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 National Bank Holdings Corporation 2022, First Quarter earnings call. My name is Keith 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 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 will undertake no obligation to update or revise these statements. In addition, this 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 turn the call over and introduce National Bank Holdings Corporation's Chairman, President and CEO, Mr. Timothy Laney.

Timothy Laney

Thank you Keith. Good morning and thank you for joining us as we discussed, both National Bank Holdings First Quarter 2022 financial results. And last evening's announced acquisition of Utah-based Rock Canyon bank. I'm joined by Aldis Birkans, our Chief Financial Officer. With respect to the first quarter, our focus on small and medium-sized businesses operating in great U.S. markets continued to produce solid results. Our teams delivered record first quarter annualized loan growth of 15.8%.

Most important, the newer read originations remain granular and diversified in nature. We're working 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. Our focus on earning the full relationship of our clients resulted in attractive growth in transaction deposits and treasury management fees. I'll add that we feel very good about our new market share gains and our momentum on that front. Finally, it's noteworthy that net interest income is well-positioned to benefit from rising rates, and more broadly, we believe our balance sheet is well-positioned to avoid major AOCI shocks.