National Bank Holdings Corporation

Good morning, everyone, and welcome to the National Bank Holdings Corporation 2024 Second Quarter Earnings Call. My name is Maddie, and I will be your conference operator for today. At this time, all participants are in a listen-only mode. 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, Maddie, 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, loan, 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 www.nationalbankholdings.com. It is now my pleasure to turn the call over and introduce National Bank Holdings Corporation's chairman, president, and CEO, Mr. Tim Laney.

Thank you, Emily. Well, good morning, and thank you for joining us as we discuss National Bank Holdings' second quarter results. I'm joined by Aldous Burkhans, our chief financial officer. We delivered quarterly earnings of 68 cents per diluted share on the back of a 3.7% net interest margin, as well as increases in our diversified sources of fee revenue. Loans increased 8.1% annualized during the quarter, and credit quality continues to benefit from having built a diversified and granular loan portfolio. We also realized a 7.9% annualized increase in average deposits, with transactional deposits representing 87.8% of total deposits. Expenses were well managed, particularly in light of the investments we're making to build to Unify, increases in our defenses against emerging fraud threats, and also expanding the capabilities of Canberra. We feel very good about what we're seeing and hearing in our markets, and we entered the third quarter with a solid pipeline and strong momentum. And on that note, I'll turn the call over to Aldous.