National Bank Holdings Corp. (NYSE:NBHC) Q3 2020 Earnings Conference Call - Final Transcript

Oct 21, 2020 • 11:00 am ET


National Bank Holdings Corp. (NYSE:NBHC) Q3 2020 Earnings Conference Call - Final Transcript


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Good morning everyone and welcome to the National Bank Holdings Corporation 2020 Third Quarter Earnings Call. My name is Mariama 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 the date of this call and National Bank Holdings Corporation undertakes 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 It is now my pleasure to turn the call over and introduce National Bank Holdings Corporation's Chairman, President and CEO, Mr. Tim Laney.

G. Timothy Laney

Thank you, Mariama. Good morning and thank you for joining [Phonetic] National Bank Holdings third quarter 2020 earnings call. I have with me our Chief Financial Officer, Aldis Birkans and Rick Newfield, our Chief Risk Management Officer. I'm pleased to share with you that despite pandemic-related challenges, we delivered record earnings during the third quarter on the strength of record-breaking fee income. We continued to maintain a risk-off position on our balance sheet with the goal of being well prepared to address any further economic downturns should they occur. Having said this, we clearly benefit from operating in markets that are performing better than most of the country.

The diversity and granularity of our credit portfolio continues to produce solid results with annualized net charge-offs of just 4 basis points. In fact, we have experienced continued improvement across a broad set of credit metrics during the quarter. While growth in deposit balances has practically been a given during these times, I'm particularly pleased with the growth in new treasury management relationships we've experienced. Finally, we continue to prudently support our clients and communities and we're proud to have recently been named Colorado's 2020 Job Creation Bank of the Year by the Small Business Administration. And on that note, Rick, I'll hand off the call to you.

Richard U. Newfield

Thank you, Tim and good morning everyone. I'll cover three areas in my comments. First, I'll briefly summarize our third quarter credit metrics and performance. Second, I'll discuss the status of our COVID-related modifications. And third, I'll describe the actions we continue to take to reduce risk on our balance sheet while working to prudently