On this page of StockholderLetter.com we present the 4/3/2023 shareholder letter from National Bank Holdings Corp — ticker symbol NBHC. Reading current and past NBHC letters to shareholders can bring important insights into the investment thesis.

 •  4/3/2023 Letter Continued (Full PDF)
 •  3/29/2024 NBHC Stockholder Letter
 •  3/28/2025 NBHC Stockholder Letter
 •  More "Banking & Savings" Category Stockholder Letters
 •  NBHC Benford's Law Stock Score = 100

NBHC 4/3/2023 Shareholder/Stockholder Letter Transcript:

2022
RESP ONSIBLY GROWI NG
TO SUPP ORT OUR CLIE NTS
AND COMMUNITIES
A N N UA L R E P O R T
AND FORM 10-K

A LETTER FROM OUR CHAIRMAN, PRESIDENT AND CEO
TIM LANEY
FELLOW SHAREHOLDERS,
2022 was a year of continued growth and investment
for our company. Our teams delivered record return
on tangible common equity while simultaneously
closing and integrating two strategically important bank
acquisitions that we believe will meaningfully contribute
in 2023 and beyond. With these two bank acquisitions,
we expanded our presence in the very attractive
markets of Salt Lake City and Provo, Utah; Jackson Hole,
Wyoming; and Boise, Idaho.
to produce strong credit quality with just three basis
points full year net charge-o   s and a low non-performing
loans ratio of 0.23%.
NBHC Total Shareholder Returns2,3
December 31, 2017 through December 31, 2022
60%
44.2%
50%
40%
30%
18.7%
20%
10%
Our teams also remained focused on organic growth
while maintaining exceptional credit quality.
0%
-10%
-20%
-30%
-40%
Financial highlights for the twelve months ended
December 31, 2022 include:
    Generated record return on average tangible
common equity of 13.8%1, adjusted for
one-time acquisition-related expenses
    Produced record adjusted net income of
$99.6 million1 and adjusted diluted
earnings per share of $3.051 per share
    Finished the year with a strong 10.5% Common
Equity Tier 1 capital ratio, an 8.4%1 tangible
common equity to tangible assets ratio, and an
ample liquidity position
    Realized full year net charge o   s of just 3
basis points
    Achieved a low non-performing loans to total
loans ratio of 0.23%
    Produced record loan originations of $2.0 billion
    Achieved a record low e   ciency ratio,
reaching 57.1%1 on a full-year adjusted basis
    Maintained a granular deposit base with no
concentrations in any particular industry or sector
Our strong fundamentals continue to serve us well. We
have built a granular and relationship-focused deposit
base with no concentrations in any particular industry
or sector. Our investment securities portfolio has a
short average duration and is primarily comprised of
government guaranteed mortgage-backed securities.
The quality of our loan portfolio remains very strong with
excellent performance metrics across the board. Our
prudent approach to extending credit coupled with the
diversity and granularity of our loan portfolio continues
-50%
2018
2019
2020
2021
2022
2
Our capital position remains strong with a Common
Equity Tier 1 capital ratio of 10.54%, well above the level
considered by regulators to be well capitalized. Due
to our strong capital position and ample liquidity, we
increased our dividend in 2022 with a full year dividend
of $0.94 per share.
A strong foundation to reliably support our clients
and communities
From our company   s inception, our Board of
Directors and Management have remained steadfast
in maintaining a low-to-moderate risk pro   le. This
means adhering to conservative risk limits governing
everything from concentrations in our loan portfolio
to depositor concentrations. We focus on maintaining
a highly liquid investment securities portfolio with a
short duration. We have never stretched for yield in
our investment securities, either from longer duration
Historical Dividend Per Share
CAGR: 15%
$0.75
$0.80
$0.87
2020
2021
$0.94
$0.54
2018
2019
2022
1
Represents a non-GAAP measure. Refer to pages 40-42 of the Form 10-K for a reconciliation of these measures. 2Total Shareholder Return measured based on security and
index market close prices and dividends re-invested into the same security or index. 3Past results are not a guarantee of future performance.

or credit risk. Our two recent bank acquisitions
maintained similar low risk pro   les and have broadened
our geographic reach as well as new capabilities to
further diversify our revenue streams.
Expansion of our services to our clients
The acquisition of Bank of Jackson Hole also allowed us
to expand the    nancial solutions we can provide our
clients with the addition of trust and wealth management
services through the Bank of Jackson Hole Trust. We can
now o   er our clients the solutions they need to grow
their wealth and leave a legacy.
We generated new loan originations of $2.0 billion,
primarily for commercial clients looking to expand and
grow their business. The acquisition of Rock Canyon
Bank, which we brought under our Hillcrest Bank brand,
gave us a highly successful SBA business platform and
makes us the #1 third-party SBA loan volume originator
in the state of Utah. We will leverage these SBA lending
capabilities to better serve all of our clients across the
communities we serve.
Investment in technology
We continued investing in our digital banking solution
2UniFiSM. We are designing a platform for small and
medium-sized businesses that we believe will increase
access to    nancial services while reducing the costs of
banking services. We are focused on providing small
and medium-sized businesses with alternative digital
access to address borrowing, depository, and cash
management needs, while also providing information
management and access to digital payment tools,
under the safety of a regulated bank. We   ve made great
progress in the platform design and are moving to
foundational development work.
Investment in our associates
This year we launched Associate Peer Networks with
the goal of providing an environment for like-minded
individuals to gather and cultivate relationships and
foster connection. We strongly believe that equity,
diversity, and inclusion are important elements in
building and sustaining a successful organization and a
positive, results-driven culture.
We also encourage our associates to think about their
long-term    nancial stability. Our associates have the
opportunity to participate in our 401(k) plan, which
includes a company match and we o   er an associate stock
purchase plan at a 10% discount.
Investment in our community
Making meaningful contributions in the communities we
serve is a core value and one our associates embrace.
All associates are granted up to eight paid hours each
year to donate their time to non-pro   t organizations that
align with our Community Reinvestment Act (   CRA   )
initiatives, which include    nancial literacy, a   ordable
housing, and workforce development. Our annual
Do More Charity Challenge   was held in Colorado
this year where we had a record number of associates
participating in the competition. We raised over
$136,000 for a number of charities in our communities,
bringing our grand total for the event   s seven-year
history to over $1.6 million. Our NBH Charitable
Foundation provided grants to non-pro   t organizations
across our footprint. A few of the recipients included:
Junior Achievement in Kansas City; Utah and Texas;
Young Americans Center for Financial Education in
Colorado; Impact Ventures and People Fund in Texas;
and Homewise in New Mexico.
I could not be more proud of my teammates for their e   orts
as we successfully announced, closed, and integrated
two bank acquisitions which expanded our presence
in attractive markets. We remain focused on delivering
best-in-class banking solutions for our clients. I look
forward to building on our strong foundation, earning
additional market share, and o   ering expanded product
o   erings to our clients. We believe our strong capital, our
ample liquidity, and our fortress balance sheet position
us to perform in any economic environment. We look
forward to continuing to serve our shareholders, clients,
and communities in 2023.
SINCERELY,
TIM LANEY
CHAIRMAN, PRESIDENT AND CEO

2022
HIGHLIGHTS
MARKET EXPANSION
Announced, closed, and integrated two bank acquisitions in a 9-month period
Successfully rolled-out Bank of Jackson Hole Trust & Wealth Partners to the entire NBH family of brands
Ranked nationally among the top 15 banks in SBA 504 originations and top 75 in SBA 7a originations
STRONG FINANCIAL PERFORMANCE
Achieved record adjusted pre-provision net revenue of $143.5 million1, re   ecting growth of 29.5%
Achieved record loan origination volume, totaling $2.0 billion
Maintained excellent credit quality with non-performing loans to total loans ratio of 0.23%
Achieved record low e   ciency ratio, reaching 57.1%1 on a full-year adjusted basis
Achieved record adjusted net income and diluted EPS of $99.6 million1 and $3.051 diluted earning per share
Generated record return on average tangible common equity of 13.8%1, adjusted for one-time acquisitionrelated expenses
TECHNOLOGY INVESTMENT
Made signi   cant investments in 2UniFi, further accelerating NBH   s vision of providing small and mediumsized businesses with alternative digital access, to address borrowing, deposits and cash management
needs, while also providing information management and access to digital payment tools, under the safety
of a regulated bank
ABOUT NATIONAL BANK HOLDINGS CORPORATION
National Bank Holdings Corporation is a Denver-based bank holding company created to build a leading community bank
franchise delivering high quality client service and committed to stakeholder results. Through its bank subsidiaries, NBH Bank
and Bank of Jackson Hole Trust, National Bank Holdings Corporation operates a network of over 95 banking centers, serving
individual consumers, small, medium and large businesses, and government and non-pro   t entities. Its banking centers are
located in its core footprint of Colorado, the greater Kansas City region, Utah, Wyoming, Texas, New Mexico and Idaho. Its
comprehensive residential mortgage banking group primarily serves the bank   s core footprint. Its trust business is operated in
its core footprint under the Bank of Jackson Hole Trust charter. More
#9 information about National Bank Holdings Corporation can
be found at www.nationalbankholdings.com.
1
Represents a non-GAAP measure. Refer to pages 40-42 of the Form 10-K for a reconciliation of these measures.



 4/3/2023 Letter Continued (Full PDF)