8-K
National Bank Holdings Corp (NBHC)
8-K
2022-10-28
For: 2022-10-28
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 8-K
CURRENT REPORT Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 28, 2022
NATIONAL BANK HOLDINGS CORP ORATION (Exact name of registrant as specified in its charter)
| | | |||
|---|---|---|---|---|
| Delaware | | 001-35654 | | 27-0563799 |
| (State or other jurisdiction <br>of incorporation) | | (Commission<br>File Number) | | (IRS Employer<br>Identification No.) |
7800 East Orchard Road , Suite 300 , Greenwood Village , Colorado **** 80111 (Address of principal executive offices) (Zip Code)
303 - 892-8715 (Registrant’s telephone, including area code)
Not Applicable (Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐Written Communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class: | **** | Trading Symbol | **** | Name of each exchange on which registered: |
|---|---|---|---|---|
| Class A Common Stock | | NBHC | | NYSE |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01. Regulation FD Disclosure.
Representatives from National Bank Holdings Corporation (“NBHC”) intend to use the materials filed herewith in one or more meetings with investors and analysts from time to time. NBHC also intends to make the materials available on its website (http://www.nationalbankholdings.com). NBHC is furnishing the slides as Exhibit 99.1 to this Current Report on Form 8-K.
The information contained in this Item 7.01 and the exhibit referenced herein are being “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act of 1934, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act of 1934.
Cautionary Statements Regarding Forward-Looking Information
This Current Report on Form 8-K and the exhibit filed herewith contain forward-looking statements. Any statements about NBHC’s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties. NBHC’s actual results could differ materially from those expressed in or contemplated by such forward-looking statements as a result of a variety of factors, some of which are more fully described in the exhibit hereto and in NBHC’s filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on such statements. Any forward-looking statement speaks only as of the date on which it is made, and NBHC undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description of Exhibit | |
|---|---|---|
| 99.1 | | National Bank Holdings Corporation Investor Presentation |
| | | |
| 104 | | Cover Page Interactive Data File – The cover page XBRL tags are embedded within the inline XBRL document. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| | |
|---|---|
| | National Bank Holdings Corporation |
| | |
| By: | /s/ Angela N. Petrucci |
| | Name: Angela N. Petrucci |
| | Title: Chief Administrative Officer & General Counsel |
| Date: October 28, 2022 | |
Exhibit 99.1
| Investor Presentation<br>Q3<br>–<br>2022 |
|---|
| Forward<br>-<br>Looking Statements<br>2<br>This<br>presentation<br>contains<br>forward<br>-<br>looking<br>statements<br>within<br>the<br>meaning<br>of<br>the<br>Private<br>Securities<br>Litigation<br>Reform<br>Act<br>of<br>1995<br>,<br>notwithstanding<br>that<br>such<br>statements<br>are<br>not<br>specifically<br>identified<br>..<br>Any<br>statements<br>about<br>our<br>expectations,<br>beliefs,<br>plans,<br>predictions,<br>forecasts,<br>objectives,<br>assumptions<br>or<br>future<br>events<br>or<br>performance<br>are<br>not<br>historical<br>facts<br>and<br>may<br>be<br>forward<br>-<br>looking<br>..<br>These<br>statements<br>are<br>often,<br>but<br>not<br>always,<br>made<br>through<br>the<br>use<br>of<br>words<br>or<br>phrases<br>such<br>as<br>“anticipate,”<br>“believe,”<br>“can,”<br>“would,”<br>“should,”<br>“could,”<br>“may,”<br>“predict,”<br>“seek,”<br>“potential,”<br>“will,”<br>“estimate,”<br>“target,”<br>“plan,”<br>“project,”<br>“continuing,”<br>“ongoing,”<br>“expect,”<br>“intend”<br>and<br>similar<br>words<br>or<br>phrases<br>..<br>These<br>statements<br>are<br>only<br>predictions<br>and<br>involve<br>estimates,<br>known<br>and<br>unknown<br>risks,<br>assumptions<br>and<br>uncertainties<br>..<br>We<br>have<br>based<br>these<br>statements<br>largely<br>on<br>our<br>current<br>expectations<br>and<br>projections<br>about<br>future<br>events<br>and<br>financial<br>trends<br>that<br>we<br>believe<br>may<br>affect<br>our<br>financial<br>condition,<br>liquidity,<br>results<br>of<br>operations,<br>business<br>strategy<br>and<br>growth<br>prospects<br>..<br>Forward<br>-<br>looking<br>statements<br>involve<br>certain<br>those<br>discussed<br>in<br>the<br>forward<br>-<br>looking<br>statements<br>include,<br>but<br>are<br>not<br>limited<br>to<br>important<br>risks,<br>uncertainties<br>and<br>other<br>factors,<br>any<br>of<br>which<br>could<br>cause<br>actual<br>results<br>to<br>differ<br>materially<br>from<br>those<br>in<br>such<br>statements<br>and,<br>therefore,<br>you<br>are<br>cautioned<br>not<br>to<br>place<br>undue<br>reliance<br>on<br>such<br>statements<br>..<br>Factors<br>that<br>could<br>cause<br>actual<br>results<br>to<br>differ<br>from<br>those<br>discussed<br>in<br>the<br>forward<br>-<br>looking<br>statements<br>include,<br>but<br>are<br>not<br>limited<br>to<br>:<br>difficulties<br>and<br>delays<br>in<br>integrating<br>the<br>mergers<br>of<br>NBHC,<br>Community<br>Bancorporation,<br>and<br>Bancshares<br>of<br>Jackson<br>Hole<br>Incorporated<br>(the<br>“mergers”)<br>businesses<br>or<br>fully<br>realizing<br>cost<br>savings<br>and<br>other<br>benefits<br>;<br>business<br>disruption<br>following<br>the<br>mergers<br>;<br>our<br>ability<br>to<br>execute<br>our<br>business<br>strategy,<br>including<br>our<br>digital<br>strategy,<br>as<br>well<br>as<br>changes<br>in<br>our<br>business<br>strategy<br>or<br>development<br>plans<br>;<br>business<br>and<br>economic<br>conditions<br>generally<br>and<br>in<br>the<br>financial<br>services<br>industry<br>;<br>effects<br>of<br>any<br>potential<br>government<br>shutdowns<br>;<br>economic,<br>market,<br>operational,<br>liquidity,<br>credit<br>and<br>interest<br>rate<br>risks<br>associated<br>with<br>our<br>business<br>;<br>effects<br>of<br>any<br>changes<br>in<br>trade,<br>monetary<br>and<br>fiscal<br>policies<br>and<br>laws,<br>including<br>the<br>interest<br>rate<br>policies<br>of<br>the<br>Federal<br>Reserve<br>Board<br>;<br>changes<br>imposed<br>by<br>regulatory<br>agencies<br>to<br>increase<br>our<br>capital<br>to<br>a<br>level<br>greater<br>than<br>the<br>current<br>level<br>required<br>for<br>well<br>-<br>capitalized<br>financial<br>institutions<br>;<br>effects<br>of<br>inflation,<br>including<br>its<br>associated<br>impact<br>on<br>labor<br>costs,<br>as<br>well<br>as,<br>interest<br>rate,<br>securities<br>market<br>and<br>monetary<br>supply<br>fluctuations<br>;<br>changes<br>in<br>the<br>economy<br>or<br>supply<br>-<br>demand<br>imbalances<br>affecting<br>local<br>real<br>estate<br>values<br>;<br>changes<br>in<br>consumer<br>spending,<br>borrowings<br>and<br>savings<br>habits<br>;<br>with<br>respect<br>to<br>our<br>mortgage<br>business,<br>our<br>inability<br>to<br>negotiate<br>our<br>fees<br>with<br>Fannie<br>Mae,<br>Freddie<br>Mac,<br>Ginnie<br>Mae<br>or<br>other<br>investors<br>for<br>the<br>purchase<br>of<br>our<br>loans,<br>our<br>obligation<br>to<br>indemnify<br>purchasers<br>or<br>to<br>repurchase<br>the<br>related<br>loans<br>if<br>the<br>loans<br>fail<br>to<br>meet<br>certain<br>criteria,<br>or<br>higher<br>rate<br>of<br>delinquencies<br>and<br>defaults<br>as<br>a<br>result<br>of<br>the<br>geographic<br>concentration<br>of<br>our<br>servicing<br>portfolio<br>;<br>our<br>ability<br>to<br>identify<br>potential<br>candidates<br>for,<br>obtain<br>regulatory<br>approval<br>for,<br>and<br>consummate,<br>acquisitions,<br>consolidations<br>or<br>other<br>expansion<br>opportunities<br>on<br>attractive<br>terms,<br>or<br>at<br>all<br>;<br>our<br>ability<br>to<br>integrate<br>acquisitions<br>or<br>consolidations<br>and<br>to<br>achieve<br>synergies,<br>operating<br>efficiencies<br>and/or<br>other<br>expected<br>benefits<br>within<br>expected<br>time<br>-<br>frames,<br>or<br>at<br>all,<br>or<br>within<br>expected<br>cost<br>projections,<br>and<br>to<br>preserve<br>the<br>goodwill<br>of<br>acquired<br>financial<br>institutions<br>;<br>our<br>ability<br>to<br>realize<br>the<br>anticipated<br>benefits<br>from<br>enhancements<br>or<br>updates<br>to<br>our<br>core<br>operating<br>systems<br>from<br>time<br>to<br>time<br>without<br>significant<br>change<br>in<br>our<br>client<br>service<br>or<br>risk<br>to<br>our<br>control<br>environment<br>;<br>our<br>dependence<br>on<br>information<br>technology<br>and<br>telecommunications<br>systems<br>of<br>third<br>-<br>party<br>service<br>providers<br>and<br>the<br>risk<br>of<br>system<br>failures,<br>interruptions<br>or<br>breaches<br>of<br>security,<br>including<br>those<br>that<br>could<br>result<br>in<br>disclosure<br>or<br>misuse<br>of<br>confidential<br>or<br>proprietary<br>client<br>or<br>other<br>information<br>;<br>our<br>ability<br>to<br>achieve<br>organic<br>loan<br>and<br>deposit<br>growth<br>and<br>the<br>composition<br>of<br>such<br>growth<br>;<br>changes<br>in<br>sources<br>and<br>uses<br>of<br>funds,<br>including<br>loans,<br>deposits<br>and<br>borrowings<br>;<br>increased<br>competition<br>in<br>the<br>financial<br>services<br>industry,<br>nationally,<br>regionally<br>or<br>locally,<br>resulting<br>in,<br>among<br>other<br>things,<br>lower<br>returns<br>;<br>continued<br>consolidation<br>in<br>the<br>financial<br>services<br>industry<br>;<br>ability<br>to<br>maintain<br>or<br>increase<br>market<br>share<br>and<br>control<br>expenses<br>;<br>the<br>effect<br>of<br>changes<br>in<br>accounting<br>policies<br>and<br>practices,<br>as<br>may<br>be<br>adopted<br>by<br>the<br>regulatory<br>agencies,<br>as<br>well<br>as<br>the<br>Public<br>Company<br>Accounting<br>Oversight<br>Board,<br>the<br>Financial<br>Accounting<br>Standards<br>Board<br>(“FASB”)<br>and<br>other<br>accounting<br>standard<br>setters<br>;<br>the<br>trading<br>price<br>of<br>shares<br>of<br>the<br>Company's<br>stock<br>;<br>the<br>effects<br>of<br>tax<br>legislation,<br>including<br>the<br>potential<br>of<br>future<br>increases<br>to<br>prevailing<br>tax<br>rates,<br>or<br>challenges<br>to<br>our<br>positions<br>;<br>our<br>ability<br>to<br>realize<br>deferred<br>tax<br>assets<br>or<br>the<br>need<br>for<br>a<br>valuation<br>allowance,<br>or<br>the<br>effects<br>of<br>changes<br>in<br>tax<br>laws<br>on<br>our<br>deferred<br>tax<br>assets<br>;<br>costs<br>and<br>effects<br>of<br>changes<br>in<br>laws<br>and<br>regulations<br>and<br>of<br>other<br>legal<br>and<br>regulatory<br>developments,<br>including,<br>but<br>not<br>limited<br>to,<br>changes<br>in<br>regulation<br>that<br>affect<br>the<br>fees<br>that<br>we<br>charge,<br>the<br>resolution<br>of<br>legal<br>proceedings<br>or<br>regulatory<br>or<br>other<br>governmental<br>inquiries,<br>and<br>the<br>results<br>of<br>regulatory<br>examinations,<br>reviews<br>or<br>other<br>inquiries<br>;<br>and<br>changes<br>in<br>regulations<br>that<br>apply<br>to<br>us<br>as<br>a<br>Colorado<br>state<br>-<br>chartered<br>bank<br>;<br>technological<br>changes<br>;<br>the<br>timely<br>development<br>and<br>acceptance<br>of<br>new<br>products<br>and<br>services,<br>including<br>in<br>the<br>digital<br>technology<br>space<br>and<br>our<br>digital<br>solution<br>2<br>UniFi<br>SM<br>,<br>and<br>perceived<br>overall<br>value<br>of<br>these<br>products<br>and<br>services<br>by<br>our<br>clients<br>;<br>changes<br>in<br>our<br>management<br>personnel<br>and<br>our<br>continued<br>ability<br>to<br>attract,<br>hire<br>and<br>retain<br>qualified<br>personnel<br>;<br>ability<br>to<br>implement<br>and/or<br>improve<br>operational<br>management<br>and<br>other<br>internal<br>risk<br>controls<br>and<br>processes<br>and<br>our<br>reporting<br>system<br>and<br>procedures<br>;<br>regulatory<br>limitations<br>on<br>dividends<br>from<br>our<br>bank<br>subsidiary<br>;<br>changes<br>in<br>estimates<br>of<br>future<br>credit<br>reserve<br>requirements<br>based<br>upon<br>the<br>periodic<br>review<br>thereof<br>under<br>relevant<br>regulatory<br>and<br>accounting<br>requirements<br>;<br>widespread<br>natural<br>and<br>other<br>disasters,<br>dislocations,<br>political<br>instability,<br>pandemics,<br>acts<br>of<br>war<br>or<br>terrorist<br>activities,<br>cyberattacks<br>or<br>international<br>hostilities<br>through<br>impacts<br>on<br>the<br>economy<br>and<br>financial<br>markets<br>generally<br>or<br>on<br>us<br>or<br>our<br>counterparties<br>specifically<br>;<br>a<br>cyber<br>-<br>security<br>incident,<br>data<br>breach<br>or<br>a<br>failure<br>of<br>a<br>key<br>information<br>technology<br>system<br>;<br>adverse<br>effects<br>due<br>to<br>the<br>novel<br>Coronavirus<br>Disease<br>2019<br>(“COVID<br>-<br>19<br>”)<br>on<br>the<br>Company<br>and<br>its<br>clients,<br>counterparties,<br>employees<br>and<br>third<br>-<br>party<br>service<br>providers,<br>and<br>the<br>adverse<br>impacts<br>on<br>our<br>business,<br>financial<br>position,<br>results<br>of<br>operations<br>and<br>prospects<br>;<br>impact<br>of<br>reputational<br>risk<br>on<br>such<br>matters<br>as<br>business<br>generation<br>and<br>retention<br>;<br>other<br>risks<br>and<br>uncertainties<br>listed<br>from<br>time<br>to<br>time<br>in<br>the<br>Company’s<br>reports<br>and<br>documents<br>filed<br>with<br>the<br>Securities<br>and<br>Exchange<br>Commission<br>;<br>and<br>our<br>success<br>at<br>managing<br>the<br>risks<br>involved<br>in<br>the<br>foregoing<br>items<br>..<br>Any<br>forward<br>-<br>looking<br>statement<br>speaks<br>only<br>as<br>of<br>the<br>date<br>on<br>which<br>it<br>is<br>made,<br>and<br>we<br>undertake<br>no<br>obligation<br>to<br>update<br>any<br>forward<br>-<br>looking<br>statement<br>to<br>reflect<br>events<br>or<br>circumstances<br>after<br>the<br>date<br>on<br>which<br>the<br>statement<br>is<br>made<br>or<br>to<br>reflect<br>the<br>occurrence<br>of<br>unanticipated<br>events<br>or<br>circumstances,<br>except<br>as<br>required<br>by<br>applicable<br>law<br>..<br>Further Information: This presentation should be read together with “Management’s Discussion and Analysis of Financial Condit<br>ion<br>and Results of Operations” and the consolidated financial statements and the related notes thereto<br>included in our Form 10<br>-<br>K and quarterly reports |
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| About Non<br>-<br>GAAP Financial Measures<br>3<br>Certain<br>of<br>the<br>financial<br>measures<br>and<br>ratios<br>we<br>present,<br>including<br>“tangible<br>assets,”<br>“return<br>on<br>average<br>tangible<br>assets,”<br>“tangible<br>common<br>equity,”<br>“return<br>on<br>average<br>tangible<br>common<br>equity,”<br>“tangible<br>common<br>book<br>value<br>per<br>share,”<br>“tangible<br>common<br>equity<br>to<br>tangible<br>assets,”<br>“adjusted<br>non<br>-<br>interest<br>expense,”<br>“adjusted<br>efficiency<br>ratio,”<br>“adjusted<br>net<br>income,”<br>“adjusted<br>earnings<br>per<br>share<br>–<br>diluted,”<br>“adjusted<br>net<br>income<br>excluding<br>core<br>deposit<br>intangible<br>amortization<br>expense,<br>after<br>tax,”<br>“adjusted<br>return<br>on<br>average<br>tangible<br>assets,”<br>“adjusted<br>return<br>on<br>average<br>tangible<br>common<br>equity,”<br>and<br>“fully<br>taxable<br>equivalent”<br>metrics,<br>are<br>supplemental<br>measures<br>that<br>are<br>not<br>required<br>by,<br>nor<br>presented<br>in<br>accordance<br>with,<br>U<br>..<br>S<br>..<br>generally<br>accepted<br>accounting<br>principles<br>(GAAP)<br>..<br>We<br>refer<br>to<br>these<br>financial<br>measures<br>and<br>ratios<br>as<br>“non<br>-<br>GAAP<br>financial<br>measures<br>..<br>”<br>We<br>consider<br>the<br>use<br>of<br>select<br>non<br>-<br>GAAP<br>financial<br>measures<br>and<br>ratios<br>to<br>be<br>useful<br>for<br>financial<br>and<br>operational<br>decision<br>making<br>and<br>useful<br>in<br>evaluating<br>period<br>-<br>to<br>-<br>period<br>comparisons<br>..<br>We<br>believe<br>that<br>these<br>non<br>-<br>GAAP<br>financial<br>measures<br>provide<br>meaningful<br>supplemental<br>information<br>regarding<br>our<br>performance<br>by<br>excluding<br>certain<br>expenditures<br>or<br>assets<br>that<br>we<br>believe<br>are<br>not<br>indicative<br>of<br>our<br>primary<br>business<br>operating<br>results<br>or<br>by<br>presenting<br>certain<br>metrics<br>on<br>a<br>fully<br>taxable<br>equivalent<br>basis<br>..<br>We<br>believe<br>that<br>management<br>and<br>investors<br>benefit<br>from<br>referring<br>to<br>these<br>non<br>-<br>GAAP<br>financial<br>measures<br>in<br>assessing<br>our<br>performance<br>and<br>when<br>planning,<br>forecasting,<br>analyzing<br>and<br>comparing<br>past,<br>present<br>and<br>future<br>periods<br>..<br>These<br>non<br>-<br>GAAP<br>financial<br>measures<br>should<br>not<br>be<br>considered<br>a<br>substitute<br>for<br>financial<br>information<br>presented<br>in<br>accordance<br>with<br>GAAP<br>and<br>you<br>should<br>not<br>rely<br>on<br>non<br>-<br>GAAP<br>financial<br>measures<br>alone<br>as<br>measures<br>of<br>our<br>performance<br>..<br>The<br>non<br>-<br>GAAP<br>financial<br>measures<br>we<br>present<br>may<br>differ<br>from<br>non<br>-<br>GAAP<br>financial<br>measures<br>used<br>by<br>our<br>peers<br>or<br>other<br>companies<br>..<br>We<br>compensate<br>for<br>these<br>limitations<br>by<br>providing<br>the<br>equivalent<br>GAAP<br>measures<br>whenever<br>we<br>present<br>the<br>non<br>-<br>GAAP<br>financial<br>measures<br>and<br>by<br>including<br>a<br>reconciliation<br>of<br>the<br>impact<br>of<br>the<br>components<br>adjusted<br>for<br>in<br>the<br>non<br>-<br>GAAP<br>financial<br>measure<br>so<br>that<br>both<br>measures<br>and<br>the<br>individual<br>components<br>may<br>be<br>considered<br>when<br>analyzing<br>our<br>performance<br>..<br>A<br>reconciliation<br>of<br>non<br>-<br>GAAP<br>financial<br>measures<br>to<br>the<br>comparable<br>GAAP<br>financial<br>measures<br>is<br>included<br>in<br>the<br>appendix<br>.. |
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| Table of Contents<br>Financial Performance<br>08<br>Bank of Jackson Hole and<br>Rock Canyon Bank Acquisitions<br>13<br>Credit<br>16<br>Balance Sheet<br>20<br>2UniFi<br>24<br>Management Team<br>27<br>Corporate Governance Overview<br>30<br>Appendix<br>37 |
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| (1)<br>As of October 1, 2022<br>(2)<br>Does not include Bank of Jackson Hole acquisition<br>(3)<br>Represents a non<br>-<br>GAAP financial measure. See Appendix for a reconciliation of these measures.<br>(4)<br>Annualized<br>(5)<br>Adjusted for acquisition<br>-<br>related expense. See Appendix for a reconciliation of this measure.<br>Attractive Markets<br>Company Highlights<br>Headquarters<br>Denver, CO<br>Banking<br>Centers<br>(1)<br>98<br>Listing<br>NYSE:<br>NBHC<br>5<br>38<br>banking centers<br>‒<br>Front Range contributed<br>96% of Colorado’s<br>population growth between<br>2010 and 2015<br>(1)<br>‒<br>#1 in Labor Supply (<br>Forbes<br>2019<br>)<br>‒<br>#2 Best Economy in the<br>U.S.<br>(<br>U.S. News 2021<br>)<br>‒<br>#4 Best State for Business<br>(U.S. News 2021<br>)<br>2 commercial banking locations in<br>Texas<br>8<br>banking center in Utah<br>4 banking centers in New Mexico<br>3 banking centers in Idaho<br>‒<br>Utah: #1 in Top Housing Markets<br>Ranking<br>(Realtor.com 2021)<br>‒<br>Utah: #1 Best Economy in the U.S.<br>(<br>U.S. News 2021<br>)<br>‒<br>Utah: #8 Best State for Business<br>(U.S. News 2021)<br>‒<br>Texas: #9 Best Economy in the<br>U.S.<br>(U.S. News 2021)<br>34 banking centers<br>‒<br>Overland Park, KS<br>-<br>central hub<br>for the #1 county in Kansas by<br>household income and projected<br>population growth<br>(2)<br>‒<br>Overland Park, KS #7 on “2020<br>Top 100 Best Places to Live”<br>(Livability 2020)<br>‒<br>Kansas City, MO #90 on “2020<br>Top 100 Best Places to Live”<br>(Livability 2020)<br>‒<br>Kansas City, MO #10 Best City for<br>Startups<br>(Kansas City Business<br>Journal 2022)<br>(1)<br>Colorado State Demography Office<br>–<br>“Colorado’s 2016 Population & Economic<br>Overview”<br>(2)<br>Ranking based on aggregate population growth for 2019<br>-<br>2024<br>Balance Sheet<br>(2)<br>3Q22<br>Total Assets (mm)<br>$7,923<br>Total Loans (mm)<br>$5,722<br>Total Deposits (mm)<br>$6,804<br>Key Ratios<br>(2)<br>3Q22<br>Common Equity Tier 1<br>12.8%<br>Tier 1 Leverage<br>10.5%<br>ROATA<br>(3)(4)<br>0.87% / 1.39%<br>(5)<br>ROATCE<br>(3)(4)<br>8.66% / 13.76%<br>(5)<br>Net Interest Margin FTE<br>(3)(4)<br>4.01%<br>Loan / Deposit Ratio<br>84.10%<br>ACL / Loans<br>1.15%<br>Efficiency Ratio FTE<br>(3)<br>61.4% / 53.0%<br>(5)<br>9 banking centers<br>‒<br>Wyoming: #1 in State<br>Business Tax Climate Index<br>(Tax Foundation 2023) |
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| Recent Recognition<br>6<br>Fortress Balance<br>Sheet<br><br>Robust<br>Profitability<br>U.S. News<br>:<br>Best Places to Live Rankings<br>Positioned in<br>Attractive Markets<br><br>Premium Valuation<br><br>#1<br>Largest Publicly Traded Bank<br>HQ’d<br>in Colorado<br>#2 and #4<br>Colorado Springs, CO and<br>Boulder, CO<br>Market Presence in Top 5 Best<br>Places to Live<br>(1)<br>#3<br>Colorado Market Share<br>(Among Local Banks)<br>(2)<br>#6<br>Kansas City, MO<br>-<br>KS MSA<br>Market Share<br>(Among Local Banks)<br>(2)<br>Consistently<br>Regarded as a<br>Top Tier Bank<br><br>In total value<br>creation<br>(3)<br>&<br>#93<br>2020<br>Job Creation<br>Lender of the<br>Year<br>(4)<br>Sources: S&P Global<br>Market Intelligence<br>(1)<br>U.S. News, published 5/16/2022<br>(2)<br>Deposit data as of 6/30/2022. Figures include banks<br>headquartered in respective state<br>(3)<br>Represents a three<br>-<br>year annualized total shareholder<br>return based on data reported by Fortune (10/28/2021)<br>(4)<br>US Small Business Administration Colorado District Office<br>From FORTUNE. © 2021 FORTUNE Media IP Limited All<br>rights reserved. Used under license.<br><br>#92<br>Best Small<br>Regional<br>Banks<br>#9 |
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| (50%)<br>(30%)<br>(10%)<br>10%<br>30%<br>50%<br>70%<br>90%<br>NBHC<br>KRX Regional Bank Index<br>$0.34<br>$0.54<br>$0.75<br>$0.80<br>$0.87<br>$0.69<br>2017<br>2018<br>2019<br>2020<br>2021<br>YTD22<br>7<br>Shareholder Returns<br>Source: S&P Global Market Intelligence, FactSet Research Systems, Bloomberg; market data as of<br>9<br>/30/2022<br>(1)<br>Index of approximately 50 regional banks tracked by KBW<br>(2)<br>Represents a non<br>-<br>GAAP financial measure. See Appendix for a reconciliation of these measures.<br>Total Shareholder Returns For The Past Five Years (1/1/2018 through 9/30/2022)<br>Historical Dividend Per Share<br>Dividend Payout Ratio Target<br>30<br>-<br>40%<br>of core earnings<br>CAGR:<br>26<br>%<br>26.1%<br>14.1%<br>$80.4<br>$10.5<br>YE17<br>YE18<br>YE19<br>YE20<br>YE21<br>YTD22<br>Net Income<br>Non-Adjusted<br>Adjusted<br>($ in millions)<br>$88.6<br>$93.6<br>$20.4<br>$14.6<br>$35.0<br>$61.5<br>$67.8<br>(2)<br>(2)<br>(1)<br>$6.3<br>$54.5<br>$65.0<br>(2) |
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| Financial Performance |
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| Liquidity<br>Loan to deposit ratio of 84.1%<br>Capital Ratios<br>12.8% Common Equity Tier 1 Ratio<br>Q3 2022 Financial Highlights<br>(1)<br>Represents a non<br>-<br>GAAP financial measure. See Appendix for a reconciliation of these measures.<br>(2)<br>Adjusted for acquisition<br>-<br>related adjustments. See Appendix for a reconciliation of this non<br>-<br>GAAP<br>measure.<br>9<br><br>FTE net interest income totaled a record $70.5 million, an increase of $13.1<br>million, or 90.9% annualized, over 2Q22<br><br>FTE net interest margin widened 63 basis points to 4.01%, due to an increase<br>in earning asset yields<br><br>Excluding loans from the Rock Canyon Bank acquisition, loans increased<br>30.2% annualized over 2Q22<br><br>Record quarterly loan fundings totaling $631.6 million, led by commercial loan<br>fundings of $363.4 million<br><br>Strong capital, $373 million excess capital over 7.0% common equity tier 1<br>requirement<br><br>Maintained excellent credit quality with non<br>-<br>performing loans to total loans ratio<br>of 0.26%<br><br>Completed acquisitions of Community Bancorporation on 9/1/2022 and<br>Bancshares of Jackson Hole Incorporated on 10/1/2022<br>Expense<br>61.4% efficiency ratio FTE<br>(1)<br>in 3Q22<br>53.0% adjusted<br>(2)<br>in 3Q22<br>Net Income<br>$15.8 million / $25.3 million adjusted<br>(2)<br>ACL / Loans<br>1.15%<br>Record Loan Growth<br>30.2% annualized organic loan growth<br>4.01% Net interest margin FTE<br>(2) |
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| 10<br>Profitable Steady Growth<br>$23.1<br>$80.4<br>$10.5<br>YE16<br>YE17<br>YE18<br>YE19<br>YE20<br>YE21<br>YTD22<br>Net Income<br>Non-Adjusted<br>Adjusted<br>$0.79<br>$2.55<br>$3.01<br>$0.34<br>YE16<br>YE17<br>YE18<br>YE19<br>YE20<br>YE21<br>YTD22<br>EPS (Fully Diluted)<br>Non-Adjusted<br>Adjusted<br>($ in millions)<br>0.57%<br>0.38%<br>1.15%<br>1.42%<br>1.44%<br>1.37%<br>1.03%<br>0.82%<br>1.26%<br>1.23%<br>YE16<br>YE17<br>YE18<br>YE19<br>YE20<br>YE21<br>YTD22<br>ROATA<br>(1)<br>Non-Adjusted<br>Adjusted<br>71.7%<br>71.4%<br>69.4%<br>61.6%<br>60.9%<br>63.4%<br>62.7%<br>68.8%<br>67.2%<br>65.7%<br>61.1%<br>60.6%<br>63.0%<br>58.7%<br>YE16<br>YE17<br>YE18<br>YE19<br>YE20<br>YE21<br>YTD22<br>Efficiency<br>Ratio FTE<br>(1)<br>Non-Adjusted<br>Adjusted<br>$53.7<br>$54.7<br>$83.4<br>$112.9<br>$132.1<br>$110.8<br>$93.7<br>YE16<br>YE17<br>YE18<br>YE19<br>YE20<br>YE21<br>YTD22<br>Pre<br>-<br>Provision Net Revenue FTE<br>(1)<br>($ in millions)<br>$88.6<br>$2.85<br>5.04%<br>3.61%<br>11.60%<br>13.07%<br>13.27%<br>12.87%<br>10.17%<br>7.75%<br>12.76%<br>12.10%<br>YE16<br>YE17<br>YE18<br>YE19<br>YE20<br>YE21<br>YTD22<br>ROATCE<br>(1)<br>Non-Adjusted<br>Adjusted<br>$93.6<br>$20.4<br>$14.6<br>$35.0<br>$61.5<br>$67.8<br>(1)<br>(1)<br>$1.26<br>$0.73<br>$2.16<br>$0.53<br>$1.95<br>$0.21<br>(1)<br>(1)<br>(1)<br>(1)<br>(1)<br>Represents a non<br>-<br>GAAP financial measure. See Appendix for a reconciliation of these measures.<br>(2)<br>Annualized<br>(1)<br>(1)<br>(1)(2)<br>(1)(2)<br>$6.3<br>$2.11<br>$1.77<br>(1)<br>$54.5<br>$<br>65.0<br>(1)<br>(2)<br>$85.4<br>$<br>8.3<br>(1) |
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| 11<br>Growth Trends<br>$4.6<br>$4.8<br>$5.7<br>$5.9<br>$6.7<br>$7.2<br>$7.9<br>YE16<br>YE17<br>YE18<br>YE19<br>YE20<br>YE21<br>3Q22<br>Total Assets<br>$2.9<br>$3.2<br>$4.1<br>$4.4<br>$4.2<br>$5.7<br>$0.2<br>YE16<br>YE17<br>YE18<br>YE19<br>YE20<br>YE21<br>3Q22<br>Total Loans<br>Non-PPP Loans<br>PPP Loans<br>$478.9<br>$482.0<br>$577.4<br>$651.4<br>$707.3<br>$728.8<br>$743.6<br>YE16<br>YE17<br>YE18<br>YE19<br>YE20<br>YE21<br>3Q22<br>($ in billions)<br>($ in billions)<br>($ in millions)<br>Tangible Common Equity<br>(1)<br>(1)<br>Represents a non<br>-<br>GAAP financial measure. See Appendix for a reconciliation of these measures.<br>(2)<br>Includes $537.7 million of loans added through the Rock Canyon Bank acquisition on September 1, 2022.<br>$4.5<br>$4.4<br>(2) |
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| Regulatory Capital<br>12<br>TIER 1 LEVERAGE<br>10.5%<br>COMMON EQUITY TIER 1 RISK<br>-<br>BASED<br>12.8%<br>TIER 1 RISK<br>-<br>BASED<br>12.8%<br>TOTAL RISK<br>-<br>BASED<br>14.3%<br>TANGIBLE COMMON EQUITY TO<br>TANGIBLE ASSETS<br>(1)<br>9.6%<br>Capital Ratios<br>–<br>3Q22<br>(1)<br>Represents a non<br>-<br>GAAP financial measure. See Appendix for a reconciliation of these measures.<br><br>$373 million in excess capital over 7.0% common<br>equity tier 1 risk<br>-<br>based regulatory requirement<br><br>Double<br>-<br>leverage ratio just 88.7%<br><br>Holding company cash reserves of $110 million<br>sufficient to support 14 quarters of<br>shareholder<br>dividend payouts |
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| Bank of Jackson Hole and<br>Rock Canyon Bank Acquisitions |
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| 14<br>Strategically Compelling Expansion<br><br>Rock Canyon Bank ranks as #1 for SBA loans in Utah and is one of the<br>top SBA lenders in the United States<br><br>SBA team was formed in 2012 and is distinguished as a Preferred<br>Lender by both the SBA and FSA<br><br>Deep expertise in 7a, 504, USDA, and FSA loan programs<br><br>Efficient and scalable infrastructure supports origination, servicing, and<br>compliance that will serve as a solid foundation to leverage the NBH<br>footprint and the build out of 2UniFi<br>Trust and Wealth Partners<br><br>Trust and Wealth Management solution tailored to high net worth<br>individuals<br><br>Scalable Private Wealth team provides a broad range of financial and<br>retirement planning solutions,<br>creating<br>an opportunity to further<br>leverage the platform to new and existing NBH clients<br><br>Established relationships with strong investment and research<br>partners drives ability to cross<br>-<br>sell<br><br>Fee income drives revenue diversification and attractive recurring<br>earnings<br>250+<br>High Net Worth<br>Clients<br>$700mm+<br>AUM<br>Rock Canyon SBA Division<br>(1)<br>25<br>Full<br>-<br>Time<br>Associates<br>#1<br>Utah SBA Rank<br>(2)<br>$173mm<br>2021 Total Loan<br>Production<br>Source: S&P Global Market Intelligence. As of December 31, 2021<br>(1) Includes activity for SBA, FSA, and USDA programs<br>(2) Per NAGGL database. Originations as of 2/28/2022. |
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| 15<br>Acquisition Update<br>Timing &<br>Governance<br>Balance Sheet<br>& Credit<br><br>Closed on September 1<br>st<br>, 2022<br><br>Systems integrated in October 2022<br><br>RCB absorbed into NBH Bank charter<br><br>Closed on October 1<br>st<br>, 2022<br><br>System integration planned to occur in 4Q22<br><br>BOJH charter preserved and will continue to<br>house Trust & Wealth Management business<br><br>$0.8 billion total assets<br>(1)<br><br>$0.5 billion total loans<br>(1)<br><br>$0.7 billion total deposits<br>(1)<br><br>$1.5 billion total assets<br>(2)<br><br>$1.2 billion total loans<br>(2)<br><br>$1.4 billion total deposits<br>(2)<br>Financial<br>Performance<br>Ability to announce two concurrent acquisitions, receive timely regulatory approval, manage core conversions and integrate sy<br>ste<br>ms while meeting announced<br>financial targets, increasingly positions NBH as an attractive acquirer.<br>(1)<br>As of September 1, 2022<br>(2)<br>As of October 1, 2022<br><br>Expect to deliver the previously announced cost savings<br><br>Transaction expenses running lower than modeled |
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| Credit |
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| 17<br>Uniquely Diversified $5.7 Billion Loan Portfolio<br>(1)<br>Concentrations<br><br>Self<br>-<br>imposed concentration limits ensure a granular and diverse loan portfolio and<br>protect against downside risk to any particular industry or real estate sector<br><br>Individual industry sectors are limited to no more than 15% of total loan<br>commitments, with the majority being 10% or less<br><br>Non owner<br>-<br>occupied CRE is 102% of risk<br>-<br>based capital and no specific property<br>type exceeds 4%<br><br>New commercial loans originated YTD:<br>-<br>Average funding of $1.4 million<br>-<br>Weighted average commitment, including unused, of $1.9 million<br><br>Residential loans originated YTD:<br>-<br>Average funding of $408 thousand<br>-<br>Average FICO of 762<br>-<br>Average LTV of 74%<br><br>Top 25 originated relationships as of September 2022:<br>-<br>Average funded balance of $19 million<br>-<br>Average commitment of $28 million<br>Granular and Well<br>-<br>Diversified Loan Portfolio<br>3%<br>4%<br>Consumer<br>15%<br>Non<br>Owner<br>-<br>Occupied<br>CRE<br>16%<br>C&I and<br>Owner<br>Occupied<br>CRE<br>69%<br>C&I and Owner Occupied CRE , 69%<br>Non Owner Occupied CRE, 16%<br>Government & Municipal, 10%<br>Hotel & Lodging, 4%<br>Equipment Leasing, 7%<br>Commercial Construction, 3%<br>Restaurant, 6%<br>Office, 3%<br>Educational Services, 6%<br>Land Development, 2%<br>Transportation & Warehousing, 5%<br>Multifamily, 1%<br>Agribusiness, 4%<br>All Other, 3%<br>Manufacturing, 3%<br>Retail Trade, 3%<br>Consumer, 15%<br>Real Estate Rental & Leasing, 2%<br>Residential Sr. Lien, 13%<br>Lender Finance, 2%<br>Residential Jr. Lien, 1%<br>Food and Other, 2%<br>Consumer, 1%<br>Materials & Construction Companies, 2%<br>Financial Services, 2%<br>Wholesale Trade, 1%<br>Oil & Gas, 1%<br>All Other C&I, 13%<br>(1)<br>Includes $537.7 million of loans added through the Rock Canyon Bank acquisition as of September 1, 2022. |
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| 18<br>Strong Credit Quality History<br>0.16%<br>YE19<br>YE20<br>YE21<br>YTD22<br>Originated loan charge-offs<br>Acquired loan charge-offs<br>0.26%<br>0.34%<br>0.16%<br>0.15%<br>0.23%<br>0.15%<br>0.09%<br>0.11%<br>0.17%<br>0.11%<br>0.15%<br>0.06%<br>YE19<br>YE20*<br>YE21*<br>3Q22<br>Non-performing loans<br>Acquired non-performing loans<br>OREO<br>Non<br>-<br>performing Asset Composition<br>Non<br>-<br>performing Loans<br>Net Charge<br>-<br>Offs<br>(1)<br>Total Classified Loans<br>$38<br>$50<br>$29<br>$33<br>0.9%<br>1.2%<br>0.7%<br>0.6%<br>YE19<br>YE20<br>YE21<br>3Q22<br>Total classified loans<br>% of total loans<br>0.66%<br>(1)<br>As a % of average total loans<br>(2)<br>Annualized<br>0.04%<br>0.20%<br>$22<br>$20<br>$11<br>$15<br>0.49%<br>0.47% / 0.49%*<br>0.24%<br>0.26%<br>YE19<br>YE20<br>YE21<br>3Q22<br>Non-performing loans<br>Non-performing loans as a % of total loans<br>0.06%<br>* Excludes PPP loans<br>0.60%*<br>* Excludes PPP loans. Non<br>-<br>performing assets to total loans and OREO totaled 0.58% and 0.39% for YE20 and YE21, respectively<br>0.40%*<br>0.03%<br>($ in millions)<br><br>Allowance for loan losses coverage equal to 448% of non<br>-<br>performing loans<br><br>Acquisition fair value marks on acquired loans total $1.8 million, 0.3% of acquired loans or 0.03% of total loans<br>0.03%<br>0.32%<br>(2) |
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| 19<br>Allowance For Credit Loss<br><br>Allowance to total loan coverage of 1.15% provides coverage for economic uncertainty<br>ACL<br>(1)<br>12/31/2021<br>$<br>49.7<br>ACL/Total Loans<br>1.10%<br>All dollars in millions<br>(1)<br>Investment securities portfolio consists of U.S. agency mortgage backed securities requiring no ACL<br>ACL<br>(1)<br>9/30/2022<br>$<br>65.6<br>ACL/Total Loans<br>1.15% |
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| Balance Sheet |
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| <br>Portfolio built on a relationship<br>-<br>banking strategy, with emphasis on depository and treasury management relationships<br><br>Self<br>-<br>imposed concentration limits; majority of industry sectors limited to 5% or less of total loan commitments<br><br>Industries requiring in<br>-<br>depth knowledge are managed by specialty banking teams, with dedicated specialist underwriters<br><br>New loan fundings over the trailing 12 months totaled a<br>record<br>of $2.0 billion, led by commercial loan fundings of $1.3 billion<br><br>Generated<br>record<br>quarterly loan fundings totaling $631.6 million, led by quarterly commercial loan fundings of $363.4 million<br>FY16<br>FY17<br>FY18<br>FY19<br>FY20<br>FY21<br>3Q22<br>(1)<br>Excludes loans held<br>-<br>for<br>-<br>sale<br>$<br>0.9<br>$<br>1.0<br>$<br>1.2<br>$<br>1.2<br>$<br>1.2<br>$<br>1.5<br>Owner<br>Occupied CRE<br>20%<br>CRE<br>17%<br>Resi<br>Mortgage<br>14%<br>Other Consumer<br><1%<br>C & I<br>48%<br>Loan Composition<br>($5.7 Billion)<br>Quarterly Loan Fundings<br>($ in millions)<br>Total Loan Fundings<br>(1)<br>($ in billions)<br>21<br>Solid Loan Growth<br>$413.3<br>$475.4<br>$419.7<br>$492.5<br>$631.6<br>3Q21<br>4Q21<br>1Q22<br>2Q22<br>3Q22<br>$<br>2.0<br>TTM: Trailing Twelve Months<br>TTM |
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| U.S. Agency/Sponsored Agency MBS<br>U.S. Agency/Sponsored Agency CMO<br>U.S. Treasury<br>Other<br>High Quality, Highly Liquid<br>Investment Portfolio<br>22<br><br>99.8% of portfolio is U.S. agency/sponsored<br>agency and U.S. Treasury backed<br><br>3Q22 yield of 1.76%<br><br>45% of portfolio in Held<br>-<br>to<br>-<br>Maturity<br><br>Zero allowance for credit losses needed on<br>investment securities portfolio, as portfolio is<br>primarily backed by U.S. agencies<br>$1.3 Billion Investment Portfolio<br>(1)<br>(1)<br>Excludes non<br>-<br>marketable securities<br>0.2%<br>38.0<br>%<br>52.2<br>%<br>9.6<br>% |
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| Strong Transaction Deposit Growth<br><br>Average transaction deposits increased 11.1% annualized,<br>3Q22 over 2Q22<br><br>The mix of transaction deposits to total deposits increased<br>three basis points to 87.7% at 3Q22<br><br>Cost of deposits decreased seven basis points to 0.17%,<br>compared to 3Q21<br>Low Cost Deposits<br>($ in billions)<br>$3.6<br>$4.2<br>$5.1<br>$5.5<br>$1.1<br>$1.0<br>$0.9<br>$0.8<br>YE19<br>YE20<br>YE21<br>YTD22<br>Average Transaction Deposits<br>Average Time Deposits<br>41%<br>47%<br>50%<br>49%<br>37%<br>36%<br>37%<br>39%<br>19%<br>14%<br>11%<br>10%<br>3%<br>3%<br>2%<br>2%<br>$4.7<br>$5.7<br>$6.2<br>0%<br>50%<br>100%<br>YE19<br>YE20<br>YE21<br>3Q22<br>Demand & NOW<br>Savings & MM<br>CDs < $250k<br>CDs >= $250k<br>Total<br>78%<br>Non<br>-<br>Time<br>83<br>%<br>Non<br>-<br>Time<br>87<br>%<br>Non<br>-<br>Time<br>88<br>%<br>Non<br>-<br>Time<br>1.75%<br>0.25%<br>0.25%<br>3.25%<br>0.37%<br>0.27%<br>0.12%<br>0.12%<br>0.64%<br>0.45%<br>0.23%<br>0.17%<br>FY19<br>FY20<br>FY21<br>YTD22<br>Fed Funds rate<br>Cost of transaction deposits<br>Cost of deposits<br>23<br>Low Cost Transaction Deposits<br>$6.8<br><br>The Rock Canyon Bank acquisition added $734.5 million of total deposits, including $653.0 million of transaction deposits and<br>$8<br>1.5 million of time deposits on September 1, 2022.<br>Growing Low Cost Transaction Accounts<br>Deposit Composition |
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| 2UniFi |
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| To help small and medium sized<br>businesses:<br>•<br>Increase their access to the US<br>Banking System<br>•<br>Reduce their costs while saving time<br>•<br>Increase their actionable information<br>With the goal of reducing stress in the<br>lives of business owners and operators.<br>Mission<br>25 |
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| Delivering an Innovative SMB Marketplace and Platform<br>26 |
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| Management Team |
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| 28<br>Experienced Management Team<br>Nicole Van Denabeele<br>EVP, Chief Accounting Officer and<br>President, Bank Midwest<br>•<br>19 years of financial services experience<br>•<br>Controller at Polsinelli, PC<br>•<br>Senior Vice President, Assistant Controller at UMB<br>Financial Corporation<br>•<br>Started career in public accounting at Deloitte, LLP<br>Christopher Randall<br>EVP, Commercial, Specialty and Business Banking<br>•<br>25+ years of banking experience<br>•<br>Previously Senior Managing Director, Specialty Banking<br>since 2013<br>•<br>Director and Founder of CoBiz<br>Structured Finance<br>•<br>Executive of Marquette Financial Companies<br>Ruth Stevenson<br>EVP, Chief Client Executive, Deposit Operations<br>Executive and Regional President<br>•<br>45+ years of financial services experience<br>•<br>Served in a number of roles with Peoples Bank over an<br>18<br>-<br>year period<br>•<br>Worked in a variety of roles, including President of a<br>community bank, Director of Retail, Director of a<br>mortgage division and Operations Manager for a<br>mortgage division<br>Brendan Zahl<br>EVP, Personal, Private and<br>Residential Banking<br>•<br>20+ years of banking experience<br>•<br>Retail, Commercial Deposit and Lending Management<br>at Peoples National Bank; served as Peoples National<br>Bank CEO from 2012<br>-<br>2017<br>•<br>Progressive leadership growth during 10<br>-<br>year tenure at<br>FirstBank<br>Tim Laney<br>Chairman, President & CEO<br>(<br>41<br>years in banking)<br>•<br>Head of Business Services at Regions Financial, where he also led the transformation<br>of wholesale lines of business<br>•<br>Senior management roles in small business, commercial banking, private banking,<br>corporate marketing and change management and Management Operating Committee<br>member at Bank of America; also served as President, Bank of America, Florida<br>Richard Newfield<br>Chief Risk Management Officer<br>(3<br>8<br>years in banking)<br>•<br>Head of Business Services Credit at Regions Financial<br>•<br>Senior roles in risk management, credit, commercial banking, global bank debt and<br>corporate marketing at Bank of America<br>Aldis Birkans<br>Chief Financial Officer<br>(<br>24<br>years in financial industry<br>)<br>•<br>Senior Vice President, Treasurer at NBHC<br>•<br>Vice President, Assistant Treasurer at M&I Bank<br>•<br>Senior Vice President, Corporate and Investment Bank Treasury at Citigroup<br>Angela Petrucci<br>Chief Administrative Officer & General Counsel<br>(<br>21<br>years in legal and banking)<br>•<br>Senior Vice President, General Counsel at NBH Bank<br>•<br>In House Counsel at Accenture and an associate at Chapman and Cutler LLP<br>•<br>Started career as a commercial banker at First Chicago Bank (now JP Morgan<br>Chase)<br>Valerie Kramer<br>EVP, Chief Digital Officer<br>•<br>20+ years of financial services experience<br>•<br>Served in multiple Treasury Management<br>and Client Solution roles with NBH Bank,<br>including Treasury Management Director,<br>over a 13 year period |
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| 29<br>Management & Directors<br>NBHC MANAGEMENT & DIRECTORS<br>BENEFICIAL<br>O<br>WNERSHIP<br>(1)<br>PERCENT OF CLASS<br>(2)<br>G. Timothy<br>Laney<br>518,575<br>1.55<br>%<br>Aldis Birkans<br>68,655<br>0.<br>21<br>%<br>Richard U. Newfield, Jr.<br>167,414<br>0.<br>50<br>%<br>Angela Petrucci<br>17,683<br>0.<br>05<br>%<br>Ralph W. Clermont<br>84,848<br>0.2<br>5<br>%<br>Robert E. Dean<br>29,056<br>0.<br>09<br>%<br>Alka<br>Gupta<br>4,175<br>0.0<br>1<br>%<br>Fred<br>J. Joseph<br>19,135<br>0.<br>06<br>%<br>Patrick Sobers<br>31,639<br>0.<br>09<br>%<br>Micho F. Spring<br>36,089<br>0.<br>11<br>%<br>Burney S. Warren, III<br>30,228<br>0.09%<br>Art<br>Zeile<br>15,184<br>0.05%<br>All current NBHC management and directors as a group (1<br>2<br>persons)<br>1,022,681<br>3.04%<br>Beneficial Ownership<br>(as of<br>9/30/22<br>)<br>(1)<br>Includes unvested restricted shares for which the director or officer has voting power and shares issuable upon the exercise<br>of<br>options as well as indirect ownership. Does not include unvested performance stock units.<br>(2)<br>Calculated in accordance with Item 403 of Regulation S<br>-<br>K, and based on 33,189,253 shares of Class A common stock outstanding an<br>d entitled to vote and 169,345 shares of unvested restricted stock entitled to vote. |
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| Corporate Governance |
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| 31<br>Best Practices In Governance and Compensation<br>Corporate Governance<br><br>Lead Independent Director with robust role and responsibilities<br><br>Majority independent<br>Board<br><br>No short<br>-<br>selling, hedging, or pledging of NBHC<br>shares (applies to all NBHC<br>and NBH Bank insiders)<br><br>Annual election of Board members and say<br>-<br>on<br>-<br>pay<br>vote<br><br>Fully independent Audit & Risk, Compensation, and<br>Nominating & Governance<br>Committees<br><br>Annual Director and Committee<br>evaluation process<br><br>Board<br>-<br>adopted Code of Conduct that applies to all directors, officers, and<br>employees<br><br>Published Corporate Governance Guidelines<br>Executive Compensation<br><br>Provide the majority of compensation in the form of variable, performance<br>-<br>based elements<br><br>Ensure a strong link between financial and operational goals, shareholder<br>value creation, and executive compensation<br><br>Conduct shareholder engagement on compensation<br>-<br>and governance<br>-<br>related issues, and respond to shareholder feedback as appropriate<br><br>Enforce<br>stock ownership guidelines for executives (5x base salary for CEO<br>and 4/2x base<br>salary for other NEOs) and non<br>-<br>employee directors (5x<br>annual Board cash retainer)<br><br>Provide for a<br>clawback<br>of incentive compensation in the event of a material<br>restatement of financial or operating results<br><br>Impose a double<br>-<br>trigger change<br>-<br>in<br>-<br>control requirement before vesting of<br>outstanding, unvested equity awards is accelerated<br><br>Use an independent compensation consultant<br><br>Conduct annual risk assessment of compensation program<br><br>Annual say<br>-<br>on<br>-<br>pay vote<br>NBHC’s corporate governance policies and executive compensation practices support our business and<br>align with best practices |
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| Fred J. Joseph<br><br>Financial services regulator for 30 years as the Banking<br>and Securities Commissioner for the State of Colorado<br><br>Member of the<br>Investor Issues Committee for FINRA<br>I<br>N<br>A<br>Compensation<br>Independent<br>Governance &<br>Nominating<br>Committee Chair<br>Audit & Risk<br>Appointed within the<br>last five years<br>G. Timothy Laney<br><br>President, CEO and Chairman<br><br>Former Sr Executive VP & Head of Business<br>Services at Regions Financial<br><br>24<br>-<br>year tenure at Bank of America, and a member of<br>Bank of America’s Management Operating Committee<br>N<br>C<br>*<br>I<br>Robust Lead Director<br>Responsibilities<br><br>Mr. Clermont presides at all Board<br>meetings where the Chairman is not<br>present and at all executive sessions<br>of independent Directors<br><br>Acts as liaison between Chairman<br>and independent Directors<br><br>Reviews and approves Board<br>meeting agendas and information<br>presented to Board<br><br>Engages with major shareholders as<br>needed<br><br>As the independent Lead Director,<br>Mr. Clermont is an ex officio member<br>of all Board committees with full<br>voting rights<br>NBHC Board of Directors<br>A<br>Burney S. Warren<br><br>Former Executive Vice President and Director of M&A<br>for Branch Banking and Trust Company<br><br>During his tenure at BB&T, Warren successfully<br>completed over 50 bank and non<br>-<br>bank acquisitions<br>I<br>C<br>A<br>Art Zeile<br><br>Current CEO of DHI Group<br><br>Extensive experience in software, telecommunications,<br>internet, datacenter and security technologies, with a<br>particular focus on cybersecurity<br><br>Began career as an Officer in the U.S. Air Force<br>Patrick Sobers<br><br>30+ years of financial services experience<br><br>10 years with NBH Bank (Former EVP, Head of Business<br>and Consumer Banking)<br><br>Member of NBH Bank’s board of directors since 2017<br><br>Several leadership positions at Bank of America, including<br>Southeast Region’s Consumer Banking Executive<br>32<br>Ralph W. Clermont<br><br>Lead Independent Director<br><br>Former Managing Partner of KPMG, St. Louis office<br><br>39+ years of banking and audit experience<br>I<br>N<br>A<br>C<br>*<br>Robert E. Dean<br><br>Former Senior Managing Director of Ernst & Young<br>Corporate Finance<br><br>Practiced corporate, banking and securities law with<br>Gibson, Dunn & Crutcher<br>I<br>N<br>A<br>C<br>*<br>I<br>A<br>C<br>Micho F. Spring<br><br>Chair of Global Corporate Practice at Weber Shandwick<br><br>Formerly CEO of Boston Telecommunications Company<br><br>Served four years as Deputy Mayor of Boston<br>I<br>N<br>A<br>A<br>Alka Gupta<br><br>Fortune 500 executive and tech entrepreneur with deep<br>experience in digital transformation<br><br>Currently a Venture Partner at Fin Venture Capital<br><br>Co<br>-<br>Founder of and former President at<br>GlobaliD<br>, Inc.<br>I<br>C<br>* |
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| 33<br>NBHC Board Represents a Diverse Range of<br>Qualifications and Skills<br>5<br>4<br>9<br>8<br>6<br>9<br>3<br>3<br>3<br>2<br>CEO or President of<br>Private or Public<br>Company<br>Other Public Board<br>Experience<br>Financial or Audit<br>Background<br>Financial Services<br>Industry<br>Marketing or Sales<br>Background<br>Community or<br>Governmental Service<br>Legal or Regulatory<br>Experience<br>IT, Cyber, or Fintech<br>Background<br>Racial or Ethnic Diversity<br>Gender Diversity<br>Experience or<br>Expertise<br>Number of Directors<br>Experienced leaders<br>capable of overseeing<br>execution and<br>challenging<br>management<br>Critical industry<br>knowledge and<br>involvement in local<br>communities<br>Critical to overseeing<br>management’s<br>execution of strategy<br>Diversity |
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| 34<br>Board’s Role in Oversight of Risk<br>The Board is actively engaged in NBHC’s risk management.<br>Robust Risk Oversight at Board Level<br>Risk<br>Board Oversight<br>Actions<br>Cybersecurity<br>Evolving nature and complexity of the threats from organized<br>cybercriminals and hackers<br>NBHC Audit and Risk Committee is responsible for oversight<br>of the Company’s operational (including cybersecurity) and<br>reputational risks<br>Employs detection and response mechanisms designed to<br>contain and mitigate security incidents<br>Human Capital/Diversity<br>Stagnant, poorly diversified boards are not only concerning<br>to shareholders, but are also viewed unfavorably by proxy<br>advisers such as ISS and Glass Lewis<br>NBHC Nominating and Governance Committee considers<br>diversity in its assessment of potential nominees to the Board<br>In 2021, the NBHC Board appointed two new diverse<br>candidates to the Board. In addition, the Bank Board is also<br>diverse in terms of experience, race and gender<br>Market/Credit Risk<br>NBH’s business is highly susceptible to credit risk and<br>market fluctuations in the value of real estate and other<br>collateral<br>NBHC Audit and Risk Committee is responsible for the<br>oversight of the Company’s market, credit and liquidity risk<br>Implements strict credit concentration limits by industry and<br>real estate type, requires credit decisions to be made<br>independent of bankers and line management, regularly<br>reviews detailed credit reporting, including risk mitigation<br>trends, and oversees credit stress testing twice a year.<br>Adopts and oversees comprehensive liquidity and market<br>risk policies<br>Compensation<br>Misalignment between the compensation program and<br>business strategy can result in substantial risk for the<br>Company and its shareholders<br>NBHC Compensation Committee oversees compensation<br>risk to identify any practices that present unacceptable risk to<br>NBH<br>Conducts annual risk assessment of compensation program |
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| 35<br>Executive Compensation Program<br>NBH’s executive compensation practices align management incentives with long<br>-<br>term shareholder interests<br>Components of Executive Compensation (2021)<br>2021 Compensation Breakdown<br>Additional Compensation Features<br>Component<br>Metrics<br>Base Salary<br>(Cash)<br><br>Reviewed annually<br>Annual Cash Incentive Award<br>(At<br>-<br>Risk<br>Cash)<br><br>2021 Corporate Measures<br>(1)<br>:<br><br>Core Net Income (40%)<br><br>Asset Quality (30%)<br><br>Enterprise Risk Management (15%)<br><br>Qualitative (15%)<br>Long<br>-<br>Term<br>Incentive Award<br>(PSUs, Options & Restricted<br>Stock)<br><br>3<br>-<br>year Relative ROTA<br><br>3<br>-<br>year Relative TSR<br>Link<br>to Strategy<br><br>Among other things, attract and retain executives capable of driving achievement of the Company’s<br>strategic objectives<br><br>Ensure the goals and interests of management are aligned with those of our shareholders, clients, and<br>communities we serve<br><br>Balance compensation to reward both short<br>-<br>term results and the strategic decisions and actions<br>necessary to run a sustainable business and create long<br>-<br>term value<br><br>Motivate executives to deliver a high level of performance and achieve strategic goals within clear and<br>acceptable risk parameters<br><br>Attract and retain highly qualified executives through a balance of cash and equity compensation<br><br>Financial metrics and relative targets established are a reflection of what Compensation Committee<br>deems important to align the NEO’s performance with the achievement of the Company’s strategic goals<br>and key long<br>-<br>term financial targets<br><br>Evaluate executive compensation and Company performance relative to peers<br><br>Stock Ownership Guidelines:<br><br>CEO: 5x base salary<br><br>NEOs: CFO (4x base salary), CRMO and CAO (2x base salary)<br><br>Clawback<br>provisions in place to recover performance<br>-<br>based compensation from NEOs under certain<br>circumstances<br><br>Usage of an independent compensation consultant (F.W. Cook)<br><br>Frequent outreach to shareholders<br><br>Greater emphasis on “at risk” pay since 2014<br>Compensation<br>Metrics Tied to Long<br>-<br>Term Strategy<br>CEO<br>Other NEOs<br>At Risk<br>At Risk: 75%<br>At Risk: 65%<br>(1)<br>Corporate measures apply to compensation of CEO, CFO,<br>CRMO<br>, and CAO; as a bank business line EVP, NEO<br>Zahl’s<br>Annual Cash Incentive Award is based<br>on the following measures: Core Net Income (5.0%), Asset Quality (5.0%), ERM &<br>ESG<br>(5.0%), Line of Business Specific Metrics (70%) and Qualitative (15%).<br>Long Term<br>Incentive<br>Award<br>40%<br>Annual Cash<br>Incentive Award<br>35%<br>Base Salary<br>25%<br>Long<br>-<br>Term<br>Incentive<br>Award<br>33%<br>Annual Cash<br>Incentive<br>Reward<br>32%<br>Base Salary<br>35% |
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| 36<br>Environmental, Social and Governance<br>(ESG) Matters<br>Environmental<br><br>Committed to using environmentally friendly office products and materials and optimizing our office and banking center space.<br><br>Continued investment in our mobile and digital platforms, resulting in a reduction in paper and fuel emissions.<br><br>Providing financing for green and sustainable businesses and actively exploring opportunities to invest in these industries.<br>Community<br>Engagement &<br>Support<br><br>Support a number of causes with a focus on helping people find work, affordable housing, and become financially empowered.<br><br>Grant associates eight paid hours each year to donate their time to non<br>-<br>profit organizations.<br><br>Completed our 6<br>th<br>annual Do More Charity Challenge®, bringing our total contribution to nearly $1.5 million to nonprofits in the communities we<br>s<br>erve.<br><br>Purchased loans from Habitat for Humanity in Fort Collins, Colorado to enable them to continue building much needed affordabl<br>e h<br>ousing.<br>Human Capital<br><br>We believe that our Company’s long<br>-<br>term success is deeply tied to having a dedicated and engaged workforce and a commitment to t<br>he communities we serve.<br><br>We strive for all of our associates to feel safe and empowered at work. To that end, we maintain a whistleblower hotline that<br>al<br>lows associates and others to<br>anonymously voice concerns.<br><br>We invest in the professional development and long<br>-<br>term financial stability of our workforce by offering tuition reimbursement a<br>nd the opportunity to participate in<br>our 401(k) plan, which includes contribution matches from the Company. Additionally, we offer a stock purchase plan (ESPP) to<br>ou<br>r associates to purchase<br>shares in our Company at a 10% discount.<br>Equity, Diversity<br>and Inclusion<br><br>Our Equity, Diversity and Inclusion efforts are driven by an Equity, Diversity and Inclusion Committee comprised of a multi<br>-<br>disc<br>iplinary group of associates<br>throughout NBH Bank with the support of the executive management team.<br><br>As of December 31,<br>2021,<br>68% of the Company’s workforce is female and 56% of the Company’s managerial roles are held by women.<br><br>In 2021, we hired 382 associates, and 70% of those new associates were female and 35% were minorities.<br>NBH’s long<br>-<br>standing commitment to ESG in all of its business activities |
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| Appendix |
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| As of and for the three<br>months ended<br>As of and for the nine<br>months ended<br>Return on Average Tangible Assets and Return on Average Tangible Equity<br>30-Sep-22<br>30-Sep-22<br>31-Dec-21<br>31-Dec-20<br>31-Dec-19<br>31-Dec-18<br>31-Dec-17<br>31-Dec-16<br>Net income<br>15.8<br>$<br><br>54.6<br>$<br><br>93.6<br>$<br><br>88.6<br>$<br><br>80.4<br>$<br><br>61.5<br>$<br><br>14.6<br>$<br><br>23.1<br>$<br><br>Add: impact of core deposit intangible amortization expense, after tax<br>0.3<br><br><br>0.8<br><br><br>0.9<br><br><br>0.9<br><br><br>0.9<br><br><br>1.6<br><br><br>3.3<br><br><br>3.3<br><br><br>Net income adjusted for impact of core deposit intangible amortization expense, after tax<br>16.1<br>$<br><br>55.3<br>$<br><br>94.5<br>$<br><br>89.5<br>$<br><br>81.3<br>$<br><br>63.1<br>$<br><br>17.8<br>$<br><br>26.4<br>$<br><br>Average assets<br>7,449.1<br>$<br><br>7,285.9<br>$<br><br>7,020.1<br>$<br><br>6,326.3<br>$<br><br>5,837.1<br>$<br><br>5,607.5<br>$<br><br>4,705.2<br>$<br><br>4,652.0<br>$<br><br>Less: average goodwill and core deposit intangible, net of deferred tax asset related to goodwill<br>(131.5)<br><br><br>(117.5)<br><br><br>(111.9)<br><br><br>(114.0)<br><br><br>(116.1)<br><br><br>(188.5)<br><br><br>(53.0)<br><br><br>(60.0)<br><br><br>Average tangible assets (non-GAAP)<br>7,317.6<br>$<br><br>7,168.4<br>$<br><br>6,908.2<br>$<br><br>6,212.2<br>$<br><br>5,721.0<br>$<br><br>5,489.0<br>$<br><br>4,652.3<br>$<br><br>4,592.0<br>$<br><br>Average shareholders' equity<br>870.8<br>$<br><br>844.2<br>$<br><br>846.5<br>$<br><br>788.3<br>$<br><br>737.9<br>$<br><br>662.4<br>$<br><br>546.7<br>$<br><br>583.7<br>$<br><br>Less: average goodwill and core deposit intangible, net of deferred tax asset related to goodwill<br>(131.5)<br>$<br><br>(117.5)<br>$<br><br>(111.9)<br>$<br><br>(114.0)<br>$<br><br>(116.1)<br><br><br>(118.5)<br><br><br>(53.0)<br><br><br>(60.0)<br><br><br>Average tangible common equity (non-GAAP)<br>739.4<br>$<br><br>726.8<br>$<br><br>734.6<br>$<br><br>674.3<br>$<br><br>621.8<br>$<br><br>543.9<br>$<br><br>493.8<br>$<br><br>523.7<br>$<br><br>Return on average assets<br>0.84%<br>1.00%<br>1.33%<br>1.40%<br>1.38%<br>1.10%<br>0.31%<br>0.50%<br>Return on average tangible assets (non-GAAP)<br>0.87%<br>1.03%<br>1.37%<br>1.44%<br>1.42%<br>1.15%<br>0.38%<br>0.57%<br>Return on average equity<br>7.22%<br>8.64%<br>11.06%<br>11.24%<br>10.89%<br>9.28%<br>2.67%<br>3.95%<br>Return on average tangible common equity (non-GAAP)<br>8.66%<br>10.17%<br>12.87%<br>13.27%<br>13.07%<br>11.60%<br>3.61%<br>5.04%<br>As of and for the three<br>months ended<br>As of and for the nine<br>months ended<br>Fully Taxable Equivalent Net Interest Margin<br>30-Sep-22<br>30-Sep-22<br>Net interest income<br>69.1<br>$<br><br>171.8<br>$<br><br>Add: impact of taxable equivalent adjustment<br>1.4<br><br><br>4.1<br><br><br>Net interest income, fully taxable equivalent (non-GAAP)<br>70.5<br>$<br><br>175.8<br>$<br><br>Average earning assets<br>6,982.0<br>$<br><br>6,830.0<br>$<br><br>Net interest margin<br>3.93%<br>3.36%<br>Net interest margin, fully taxable equivalent (non-GAAP)<br>4.01%<br>3.44%<br>As of and for the years ended<br>38<br>Reconciliation of Non<br>-<br>GAAP Measures<br>($ in millions, except per share) |
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| As of and for the three<br>months ended<br>As of and for the nine<br>months ended<br>Adjusted Financial Results<br>30-Sep-22<br>30-Sep-22<br>31-Dec-18<br>31-Dec-17<br>Adjustments to net income:<br>Net income<br>15.8<br>$<br><br>54.6<br>$<br><br>61.5<br>$<br><br>14.6<br>$<br><br>Adjustments<br>(1)<br>9.5<br><br><br>10.5<br><br><br>6.3<br><br><br>20.4<br><br><br>Adjusted net income (non-GAAP)<br>25.3<br>$<br><br>65.0<br>$<br><br>67.8<br>$<br><br>35.0<br>$<br><br>Adjustments to earnings per share:<br>Earnings per share - diluted<br>1.77<br>$<br><br>1.95<br>$<br><br>0.53<br>$<br><br>Adjustments<br>(1)<br>0.34<br><br><br>0.21<br><br><br>0.73<br><br><br>Adjusted earnings per share - diluted (non-GAAP)<br>2.11<br>$<br><br>2.16<br>$<br><br>1.26<br>$<br><br>Adjustments to return on average tangible assets:<br>Adjusted net income (non-GAAP)<br>25.3<br>$<br><br>65.0<br>$<br><br>67.8<br>$<br><br>35.0<br>$<br><br>Add: impact of core deposit intangible amortization expense, after tax<br>0.3<br><br><br>0.8<br><br><br>1.6<br><br><br>3.3<br><br><br>Net income adjusted for impact of core deposit intangible amortization expense, after tax<br>25.6<br><br><br>65.8<br><br><br>69.4<br><br><br>38.3<br><br><br>Average tangible assets (non-GAAP)<br>7,317.6<br><br><br>7,168.4<br><br><br>5,489.0<br><br><br>4,652.3<br><br><br>Adjusted return on average tangible assets (non-GAAP)<br>1.39%<br>1.23%<br>1.26%<br>0.82%<br>Adjustments to return on average tangible common equity:<br>Adjusted net income (non-GAAP)<br>25.3<br>$<br><br>65.0<br>$<br><br>67.8<br>$<br><br>35.0<br>$<br><br>Add: impact of core deposit intangible amortization expense, after tax<br>0.3<br><br><br>0.8<br><br><br>1.6<br><br><br>3.3<br><br><br>Net income adjusted for impact of core deposit intangible amortization expense, after tax<br>25.6<br>$<br><br>65.8<br>$<br><br>69.4<br>$<br><br>38.3<br>$<br><br>Average tangible common equity (non-GAAP)<br>739.4<br><br><br>726.8<br><br><br>543.9<br><br><br>493.8<br><br><br>Adjusted return on average tangible common equity (non-GAAP)<br>13.76%<br>12.10%<br>12.76%<br>7.75%<br>(1)<br>Adjustments:<br>Provision expense adjustment:<br>CECL Day 1 provision expense (non-GAAP)<br>5.4<br>$<br><br>5.4<br>$<br><br>-<br>$<br><br>-<br>$<br><br>Non-interest expense adjustmend:<br>Acquisition-related (non-GAAP)<br>(2)<br>7.0<br>$<br><br>8.3<br>$<br><br>8.0<br>$<br><br>2.7<br>$<br><br>Tax reform bonuses<br>(3)<br>-<br><br><br>0.5<br><br><br>Total pre-tax adjustments (non-GAAP)<br>12.4<br><br><br>13.6<br><br><br>8.0<br><br><br>3.2<br><br><br>Collective tax expense impact<br>(2.8)<br><br><br>(3.1)<br><br><br>(1.6)<br><br><br>(1.2)<br><br><br>Deferred tax asset re-measurement<br>-<br><br><br>18.5<br><br><br>Adjustments (non-GAAP)<br>9.5<br>$<br><br>10.5<br>$<br><br>6.3<br>$<br><br>20.4<br>$<br><br>As of and for the years ended<br>39<br>Reconciliation of Non<br>-<br>GAAP Measures<br>(cont’d)<br>($ in millions, except per share)<br>(2)<br>Represents non<br>-<br>recurring acquisition expense related to the Bank of Jackson Hole and Rock Canyon Bank acquisitions in the curren<br>t year, and the Peoples acquisition in 2018 and 2017<br>(3)<br>Represents a special $1,000 bonus payment to 491 associates made in connection with the Tax Cuts and Jobs Act enacted in 2017 |
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| As of and for the<br>three months ended<br>As of and for the<br>nine months ended<br>Efficiency Ratio<br>30-Sep-22<br>30-Sep-22<br>31-Dec-21<br>31-Dec-20<br>31-Dec-19<br>31-Dec-18<br>31-Dec-17<br>31-Dec-16<br>Net interest income<br>69.1<br>$<br><br>171.8<br>$<br><br>187.1<br>$<br><br>192.9<br>$<br><br>205.8<br>$<br><br>197.4<br>$<br><br>146.3<br>$<br><br>145.6<br>$<br><br>Add: impact of taxable equivalent adjustment<br>1.4<br><br><br>4.1<br><br><br>5.2<br>$<br><br>5.1<br><br><br>5.1<br><br><br>4.5<br><br><br>5.9<br><br><br>4.1<br><br><br>Net interest income, FTE (non-GAAP)<br>70.5<br>$<br><br>175.8<br>$<br><br>192.3<br>$<br><br>198.0<br>$<br><br>210.9<br>$<br><br>201.9<br>$<br><br>152.2<br>$<br><br>149.7<br>$<br><br>Non-interest income<br>17.4<br>$<br><br>53.2<br>$<br><br>110.4<br>$<br><br>140.3<br>$<br><br>82.8<br>$<br><br>70.8<br>$<br><br>39.2<br>$<br><br>40.0<br>$<br><br>Non-interest expense<br>53.9<br>$<br><br>143.6<br>$<br><br>191.8<br>$<br><br>206.2<br>$<br><br>180.7<br>$<br><br>189.3<br>$<br><br>136.7<br>$<br><br>136.0<br>$<br><br>Less: CDI asset amortization<br>(0.4)<br><br><br>(1.0)<br><br><br>(1.2)<br><br><br>(1.2)<br><br><br>(1.2)<br><br><br>(2.2)<br><br><br>(5.3)<br><br><br>(5.5)<br><br><br>Less: Acquisition-related expense<br>(7.0)<br><br><br>(8.3)<br><br><br>(8.0)<br><br><br>(2.7)<br><br><br>Non-interest expense, adjusted for CDI asset amortization and<br>acquisition-related expenses (non-GAAP)<br>46.6<br>$<br><br>134.3<br>$<br><br>190.6<br>$<br><br>205.0<br>$<br><br>179.6<br>$<br><br>179.2<br>$<br><br>128.6<br>$<br><br>130.5<br>$<br><br>Efficiency ratio<br>62.39%<br>63.83%<br>64.48%<br>61.88%<br>62.63%<br>70.59%<br>73.68%<br>73.25%<br>Efficiency ratio FTE (non-GAAP)<br>61.39%<br>62.69%<br>63.38%<br>60.94%<br>61.55%<br>69.43%<br>71.42%<br>71.68%<br>Adjusted efficiency ratio FTE, adjusted for CDI and acquisition-related<br>expenses (non-GAAP)<br>52.99%<br>58.66%<br>62.99%<br>60.59%<br>61.15%<br>65.72%<br>67.23%<br>68.79%<br>As of and for the<br>three months ended<br>As of and for the<br>nine months ended<br>Pre-provision net revenue, FTE<br>30-Sep-22<br>31-Dec-21<br>31-Dec-20<br>31-Dec-19<br>31-Dec-18<br>31-Dec-17<br>31-Dec-16<br>Net interest income<br>171.8<br>$<br><br>187.1<br>$<br><br>192.9<br>$<br><br>205.8<br>$<br><br>197.4<br>$<br><br>146.3<br>$<br><br>145.6<br>$<br><br>Add: impact of taxable equivalent adjustment<br>4.1<br><br><br>5.2<br><br><br>5.1<br><br><br>5.1<br><br><br>4.5<br><br><br>5.9<br><br><br>4.1<br><br><br>Net interest income, FTE (non-GAAP)<br>175.8<br>$<br><br>192.3<br>$<br><br>198.0<br>$<br><br>210.9<br>$<br><br>201.9<br>$<br><br>152.2<br>$<br><br>149.7<br>$<br><br>Non-interest income<br>53.2<br><br><br>110.4<br><br><br>140.3<br><br><br>82.8<br><br><br>70.8<br><br><br>39.2<br><br><br>40.0<br><br><br>Non-interest expense<br>143.6<br><br><br>191.8<br><br><br>206.2<br><br><br>180.7<br><br><br>189.3<br><br><br>136.7<br><br><br>136.0<br><br><br>Less: Acquisition-related expense<br>(8.3)<br><br><br>Adjusted non-interest expense (non-GAAP)<br>135.3<br><br><br>Pre-provision net revenue, FTE (non-GAAP)<br>85.4<br>$<br><br>110.9<br>$<br><br>132.1<br>$<br><br>112.9<br>$<br><br>83.4<br>$<br><br>54.7<br>$<br><br>53.7<br>$<br><br>Pre-provision net revenue, FTE adjusted for acquisition-related expense<br>93.7<br>$<br><br>As of and for the years ended<br>As of and for<br> the years ended<br>40<br>Reconciliation of Non<br>-<br>GAAP Measures<br>(cont’d)<br>($ in millions, except per share) |
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| As of and for the<br>nine months ended<br>Tangible Common Book Value Ratios<br>30-Sep-22<br>31-Dec-21<br>31-Dec-20<br>31-Dec-19<br>31-Dec-18<br>31-Dec-17<br>31-Dec-16<br>Total shareholders' equity<br>919.4<br>$<br><br>840.1<br>$<br><br>820.7<br>$<br><br>766.9<br>$<br><br>695.0<br>$<br><br>532.4<br>$<br><br>536.2<br>$<br><br>Less: goodwill and core deposit intangibles, net<br>(186.6)<br><br><br>(121.4)<br><br><br>(122.6)<br><br><br>(123.8)<br><br><br>(124.9)<br><br><br>(61.2)<br><br><br>(66.6)<br><br><br>Add: deferred tax liability related to goodwill<br>10.8<br><br><br>10.1<br><br><br>9.2<br><br><br>8.2<br><br><br>7.3<br><br><br>10.9<br><br><br>9.3<br><br><br>Tangible common equity (non-GAAP)<br>743.6<br>$<br><br>728.8<br>$<br><br>707.3<br>$<br><br>651.4<br>$<br><br>577.4<br>$<br><br>482.0<br>$<br><br>478.9<br>$<br><br>Total assets<br>7,922.9<br>$<br><br>7,214.0<br>$<br><br>6,660.0<br>$<br><br>5,895.5<br>$<br><br>5,676.7<br>$<br><br>4,843.5<br>$<br><br>4,573.0<br>$<br><br>Less: goodwill and core deposit intangibles, net<br>(186.6)<br><br><br>(121.4)<br><br><br>(122.6)<br><br><br>(123.8)<br><br><br>(124.9)<br><br><br>(61.2)<br><br><br>(66.6)<br><br><br>Add: deferred tax liability related to goodwill<br>10.8<br><br><br>10.1<br><br><br>9.2<br><br><br>8.2<br><br><br>7.3<br><br><br>10.9<br><br><br>9.3<br><br><br>Tangible assets (non-GAAP)<br>7,747.1<br>$<br><br>7,102.7<br>$<br><br>6,546.5<br>$<br><br>5,780.0<br>$<br><br>5,559.1<br>$<br><br>4,793.1<br>$<br><br>4,515.8<br>$<br><br>Total shareholders' equity to total assets<br>11.60%<br>11.65%<br>12.32%<br>13.01%<br>12.24%<br>10.99%<br>11.72%<br>Tangible common equity to tangible assets (non-GAAP)<br>9.60%<br>10.26%<br>10.80%<br>11.27%<br>10.39%<br>10.06%<br>10.61%<br>As of and for the years ended<br>41<br>Reconciliation of Non<br>-<br>GAAP Measures<br>(cont’d)<br>($ in millions, except per share) |
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| Thank you. |
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