National Bank Holdings Corporation

Thank you for calling. May I have the confirmation code, please? Thank you, sir. May I have your first and last name and spelling? and the company always please. Thank you, sir. Just for verification, would you be able to give me one of the speakers today, the name of one of the speakers today? Okay, please let me just put you on hold for a moment and get back to you. Thank you. Hi, Mr. Anderson. Would you have the title of today's call or at least know what the call is about today? Wonderful. Thank you so much. I'll place a line in. Thank you.

This conference will be recorded.

We remained disciplined in managing deposit costs with only one basis point of deposit cost increase for the quarter and ended September with a low cost of deposits of 1.96%. Total cost of funds increased two basis points to 2.03% for the quarter. The loan to deposit ratio ended the quarter at 93.8%. Turning to asset quality. We recorded $40.6 million of provision expense to cover the quarter's elevated net charge-offs. As previously disclosed, third quarter net charge-offs totaled $46.3 million, reflecting actions taken on specific commercial loans following adverse credit events during the quarter. These credits also resulted in non-performing assets increasing by 15 basis points, or $15 million. Additionally, we hold $14.3 million of marks against our acquired loan portfolio, which provides an additional 15 basis points of loan loss coverage if applied across the entire loan book. Turning to fee income, non-interest income totaled $13.5 million, and as previously disclosed, was impacted by a $4 million impairment on one third-party FinTech investment. All this will share more on fee income momentarily. We expect fourth quarter fee income to be in the range of $17 to $18 million. Non-interest expense totaled $97.8 million for the quarter and included $15.2 million of acquisition and restructuring expenses. Excluding these one-time items, non-interest expense was $82.6 million A decrease of $1.1 million from the prior quarter. The third quarter included one additional payroll day compared to the second quarter and included elevated problem loan expense of $1.4 million for the quarter. We have fully executed on our cost saving strategies and as a result of our strong execution, we expect a clean expense run rate in the fourth quarter with core non-interest expense in the range of $75 to $77 million. Our capital levels remain well in excess of well-capitalized regulatory thresholds. Common equity tier one ratio ended the quarter at 11.7% and our total capital ratio was 14.7%. The tangible common equity ratio ended the quarter at 9.2%. Tangible book value per share was $25.37, reflecting the quarterly dividend payout and $12 million of share repurchases during the quarter. Importantly, we continue to target quarterly earnings in excess of a dollar per share in the fourth quarter. With that, I will turn the call over to Aldis.