National Bank Holdings Corporation (NBHC) Earnings

Management highlights

### Key Managerial Messages - Performance: First quarter was outstanding with record loan fundings, expanded net interest margin, positive credit metrics. Confident in achieving $1 EPS by fourth quarter. - Vista Acquisition: Onboarding of new associates and clients went well, integration efforts on track. - Loan Production: Record quarterly new loan fundings of $805 million, annualized 12% loan growth, well diversified across asset classes and geographies. - Credit Trends: Portfolio credit trends positive, lowest criticized loans in 4 years, reduced NPAs and NPLs. - Deposit and Margin: Strong deposit franchise with low deposit costs, net interest margin of 4.06% driven by loan yield. - Business Growth: Trust and Wealth Management business grew to $1.4 billion assets under management, double-digit fee growth expected. - Shareholder Returns: Increased dividend by 3% and restarted stock buyback program.

Guidance

### Forward-Looking Guidance - Loan Growth: On track to deliver full year loan growth guidance of approximately 10%. - Net Interest Margin: Expect net interest margin to remain near 4% for remainder of 2026. - Fee Income: Project to achieve full year fee income guidance of $75 million to $80 million, with $2 million to $4 million of Unifi revenue weighted towards back half of year. - Noninterest Expense: Project total noninterest expense for full year 2026 to be in range of $320 million to $330 million, with cost efficiencies from Vista acquisition expected to be realized following third quarter system integration. - Earnings: On track to deliver earnings in excess of $1 per share in the fourth quarter of 2026.

Segment performance

In the first quarter, National Bank Holdings had strong financial performance. Record loan fundings of $805 million drove an annualized 12.4% loan growth. Net interest margin expanded to 4.06%. Adjusted net income was $32.6 million or $0.72 per diluted share, 43% higher than prior quarter. Fully taxable equivalent net interest income was $111 million, up 25.7% from prior quarter. Deposit balances increased by $2.2 billion, with deposit costs at 1.94% and loan-to-deposit ratio at 91.9%. Credit quality remained strong with $4 million provision expense, net charge-offs 8 basis points (34 basis points annualized), and allowance coverage ratio 1.18%. Noninterest income was $18 million, up 16.9% year-over-year. Loan growth was well diversified across asset classes and geographies. Trust and Wealth Management business had $1.4 billion assets under management, doubling over 3 years. Dividend increased by 3% to $0.32 per share and stock buyback program restarted with $16 million purchased in Q1.

Analyst Q&A

• Q: Wanted to check in on that sort of that dollar expectation plus of earnings in the fourth quarter. You kind of made that initial expectation margin was at 3.89% and you were coming off a net loan runoff here kind of fast forward to 12% plus organic growth and a 406% margin. I guess, any potential for breach that figure earlier in the third quarter?

  A: Jeff, we had a track record of underpromising and overdelivering. I've got to tell you, having said that, we feel very, very good about our momentum. I feel like we're running on all cylinders at this point...

• Q: And just maybe jump into Nicole or all this on the margin, do you have March average for -- where that was?

  A: Yes. March came in very much in line with the overall quarter's margin...

• Q: maybe building on that -- that under promise, over deliver concept of the 10% loan growth. Notably, I mean you came in stronger out of the gate with the noise acquisition with 12% organic loan growth. So 10% seems to imply a slowdown in the remainder of the year. I guess, it does sound like your pipeline and expectations remain quite strong. How are you thinking about the cadence of growth? And what would be the factors, I guess, that would get you to potentially come in over the top of that 10%?

  A: Well, Kelly, as a reminder, we provided the guidance on 10% going into the year. And we don't typically make changes in year-end guidance. And having said that, I think the 12.4% growth in the first quarter, given everything that was going on speaks to the kind of opportunity we're seeing in the market...

• Q: Turning to expenses. I appreciate the color that you added new bankers over time that helps to drive growth, and it's ahead, which is what we want to see. It does seem like there are some moving parts with the cadence of expenses with hires plus the conversion later in the year. And I'm wondering if there's any way to get kind of a Q4 exit expense run rate, given the noise or how much on a dollar basis, you're expecting the cost saves to be post conversion? Just so we can manage the cadence appropriately coming out of the year for -- as we think through next year.

  A: Yes, it's a great question, Kelly. And first, we really been delighted with the quality of bankers that have been coming to us as we've looked at opportunities to expand in certain targeted markets...

• Q: I appreciate all the color. I wanted to ask on the dollar per share in the fourth quarter, the guidance there. What kind of provision are you assuming in that dollar per share? And I ask just because it seems somewhat tough if we just take out of the midpoint of the guide for fees and expenses and if the margin stays near kind of a 4% level. I guess it kind of feels tough to get to $1 per share. So I'm trying to figure out where specifically the guide could be conservative on those few points? Or if it's just a difference in provision.

  A: This is Aldis. I'll try to answer that one. In terms -- if you look at kind of breaking down by pieces, right, if we deliver on our loan growth and our promise we deliver type of basis we should be sitting at $1 billion-ish, if not more, of earning assets in fourth quarter than where you sit -- what we did in Q1...

• Q: I wanted to ask on the dollar per share in the fourth quarter, the guidance there. What kind of provision are you assuming in that dollar per share? And I ask just because it seems somewhat tough if we just take out of the midpoint of the guide for fees and expenses and if the margin stays near kind of a 4% level. I guess it kind of feels tough to get to $1 per share. So I'm trying to figure out where specifically the guide could be conservative on those few points? Or if it's just a difference in provision.

  A: To be very specific on provision, look, our models will drive provisioning. We use those models as we forecast. It's part of what we rely on as we get to that $1 plus of earnings in the fourth quarter. So there's no -- I would say, Andrew, maybe to answer your question this way, there's nothing unusual. There's no assumption around meaningful, in fact, any reduction in provision. That's not what this is about...

• Q: One of my follow-ups was just taken -- in terms -- I guess the last 1 for me is on the fee outlook here. at least Q1 is annualizing below that range. And I believe there's some to unify expectation in the second half of the year, mapping. Is there anything else that would load that's expected to build in order to get you to that range? I'm just trying to think through kind of the moving parts and how much is to unify versus other kind of core banking fee related uplift of this level?

  A: Right. This is Aldis. That's a great question. So yes, you're right, the unified elite fee component really is going to start hitting in the second half. So that's an uplift relatively to what we delivered in the first quarter, you look at the interchange and service charges, those are expected to grow some. And the piece that is always light in first and fourth quarters of the year are mortgage-related gains on sale as we enter in the summer season, we do expect we'll at least plan for some pick up there as well...