Q2 2024 National Bank Holdings Corp Earnings Call Transcript
Key Points
- National Bank Holdings Corp (NBHC) reported strong loan growth with an 8.1% annualized increase in loans during the quarter.
- The company achieved a 7.9% annualized increase in average deposits, with transactional deposits representing 87.8% of total deposits.
- Net interest margin remained solid at 3.76%, with the lowest quarterly cost of funds increase since the beginning of the rate cycle.
- NBHC made significant progress in reducing nonperforming loans (NPLs) and nonperforming assets (NPAs) to the lowest level since early 2023.
- The company continues to hold a strong capital position with a tangible common equity (TCE) ratio of 9.4%, Tier 1 leverage ratio of 10.2%, and CET1 ratio of 12.4%.
- NBHC recorded a $3.9 million impairment related to venture capital investments due to continued weakness in venture capital markets.
- Noninterest expense for the quarter increased slightly to $63.1 million, driven by investments in 2UniFi and other initiatives.
- The 30 to 89-day past due bucket saw an increase, although more than half of these past dues were administrative in nature.
- The trucking and transportation sector, representing 2.5% of the loan portfolio, continues to face significant pressure, posing a risk to credit quality.
- The company's fee income guidance for the second half of 2024 implies stable or slight moderation, primarily due to cautious expectations for mortgage banking revenues.
Good morning, everyone, and welcome to the National Bank Holdings Corporation 2024 second-quarter Earnings Call. My name is Matti, and I will be your conference operator for today.
(Operator Instructions) As a reminder, this conference is being recorded for replay purposes.
I will now turn the call over to Emily Gooden, Director of Investor Relations.
Thank you, Matti, and good morning. We will begin today's call with prepared remarks, followed by a question-and-answer session. 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, noninterest income, margins, allowance, taxes, and noninterest 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
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