National Bank Holdings Corporation Announces Fourth Quarter and Record Full Year 2020 Financial Results
National Bank Holdings Corporation (NYSE: NBHC) reported a fourth-quarter net income of $27.2 million, or $0.87 per diluted share, compared to $27.9 million in the previous quarter. For the full year 2020, net income reached a record $88.6 million, or $2.85 per diluted share, up 10.2% year-over-year. The bank's Common Equity Tier 1 ratio stood strong at 14.70%. Average transaction deposits grew 28.8% year-over-year. However, total loans decreased 4.4%, attributed to PPP loan forgiveness. Management remains focused on growth and expense management amid ongoing economic challenges.
- Record full-year net income of $88.6 million for 2020, or $2.85 per diluted share, up 10.2% year-over-year.
- Common Equity Tier 1 ratio at 14.70%, indicating strong capital position.
- Average transaction deposits increased by 28.8% year-over-year, showcasing robust deposit growth.
- Total loans decreased by $202.4 million, or 4.4%, primarily due to PPP loan forgiveness.
- Non-interest income declined by 25.1% in Q4 2020, driven by seasonal decreases in mortgage banking income.
DENVER, Jan. 21, 2021 (GLOBE NEWSWIRE) -- National Bank Holdings Corporation (NYSE: NBHC) reported:
For the quarter | For the quarter - adjusted(1) | For the year | For the year - adjusted (1) | |||||||||||||||||||||||||||||||||||||
4Q20 | 3Q20 | 4Q19 | 4Q20 | 3Q20 | 4Q19 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||
Net income ( | $ | 27,169 | $ | 27,893 | $ | 19,519 | $ | 27,329 | $ | 28,224 | $ | 19,519 | $ | 88,591 | $ | 80,365 | $ | 90,397 | $ | 81,054 | ||||||||||||||||||||
Earnings per share - diluted | $ | 0.87 | $ | 0.90 | $ | 0.62 | $ | 0.88 | $ | 0.91 | $ | 0.62 | $ | 2.85 | $ | 2.55 | $ | 2.91 | $ | 2.57 | ||||||||||||||||||||
Return on average tangible assets(2) | 1.67 | % | 1.76 | % | 1.35 | % | 1.68 | % | 1.78 | % | 1.35 | % | 1.44 | % | 1.42 | % | 1.47 | % | 1.43 | % | ||||||||||||||||||||
Return on average tangible common equity(2) | 15.55 | % | 16.49 | % | 12.07 | % | 15.64 | % | 16.69 | % | 12.07 | % | 13.27 | % | 13.07 | % | 13.54 | % | 13.18 | % |
(1) | See non-GAAP reconciliation below. | ||
(2) | Quarterly ratios are annualized. |
In announcing these results, Chief Executive Officer Tim Laney shared, “I am pleased to announce that our solid performance during the fourth quarter contributed to record full year earnings of
Mr. Laney added, “We are proud to have been recognized in Fortune’s 100 Fastest Growing Companies in 2020 and among the top public companies for shareholder value creation. With a strong Common Equity Tier 1 ratio of
Fourth Quarter 2020 Results
(All comparisons refer to the third quarter of 2020, except as noted)
Net income totaled
Net Interest Income
Fully taxable equivalent net interest income totaled
Loans
Total loans ended the quarter at
Asset Quality and Provision for Loan Losses
No provision for loan losses was recorded during the fourth quarter under the CECL model due to the impact of the model’s underlying economic forecast, qualitative factors and a low level of charge-offs. Annualized net charge-offs totaled
Deposits
Average transaction deposits (defined as total deposits less time deposits) increased
The cost of transaction deposits decreased three basis points from the prior quarter to
Non-Interest Income
Non-interest income totaled
Non-Interest Expense
Non-interest expense totaled
Income tax expense totaled
Capital
Capital ratios continue to be strong and in excess of federal bank regulatory agency “well capitalized” thresholds. The Tier 1 leverage ratio at December 31, 2020 for the consolidated company and NBH Bank was
Common book value per share increased
Recent Events
The COVID-19 pandemic has caused substantial disruption to the communities we serve and has changed the way we live and work. We continue to remain committed to ensuring our associates, clients and communities are receiving the support they need during these challenging times. Our banking centers remain operational through our drive-thru services and on an appointment-only basis in the lobbies. We have continued to leverage our digital banking platform with our clients. Our teams have been working diligently to support our clients who are experiencing financial hardship due to COVID-19 through participation in the SBA’s Paycheck Protection Program, including assistance with PPP loan forgiveness applications, and loan modifications, as needed. While the initial release of the vaccine is promising, the length of time that the government-mandated measures must remain in place to address COVID-19 is unknown. The pandemic has already had a significantly negative impact to the U.S. labor market, consumer spending and business operations, and it is not clear how quickly the vaccine can be widely deployed and when government-mandated measures will be removed.
Year-Over-Year Review
(All comparisons refer to the full year 2019, except as noted)
Net income totaled a record
Fully taxable equivalent net interest income totaled
Loans outstanding totaled
Average non-interest bearing demand deposits increased
A CECL model driven provision for loan losses of
Non-interest income totaled
Non-interest expense totaled
Income tax expense totaled
Conference Call
Management will host a conference call to review the results at 11:00 a.m. Eastern Time on Friday, January 22, 2021. Interested parties may listen to this call by dialing (877) 272-6762 / (615) 800-6832 (International) using the Conference ID of 4472264 and asking for the NBHC Fourth Quarter Earnings conference call. A telephonic replay of the call will be available beginning approximately four hours after the call’s completion through February 4, 2021, by dialing (855) 859-2056 (United States) / (404) 537-3406 (International) using the Conference ID of 4472264. The earnings release and an on-line replay of the call will also be available on the Company’s website at www.nationalbankholdings.com by visiting the investor relations area.
About Non-GAAP Financial Measures
Certain of the financial measures and ratios we present, including “tangible assets,” “return on average tangible assets,” “tangible common equity,” “return on average tangible common equity,” “tangible common book value per share,” “tangible common book value, excluding accumulated other comprehensive loss, net of tax,” “tangible common book value per share, excluding accumulated other comprehensive loss, net of tax,” “tangible common equity to tangible assets,” “adjusted efficiency ratio,” “adjusted non-interest expense,” “adjusted non-interest expense to average assets,” “adjusted net income,” “adjusted earnings per share - diluted,” “adjusted return on average tangible assets,” “adjusted return on average tangible common equity,” and “fully taxable equivalent” metrics, are supplemental measures that are not required by, or are not presented in accordance with, U.S. generally accepted accounting principles (GAAP). We refer to these financial measures and ratios as “non-GAAP financial measures.” We consider the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenditures or assets that we believe are not indicative of our primary business operating results or by presenting certain metrics on a fully taxable equivalent basis. We believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present and future periods.
These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and you should not rely on non-GAAP financial measures alone as measures of our performance. The non-GAAP financial measures we present may differ from non-GAAP financial measures used by our peers or other companies. We compensate for these limitations by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance.
A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.
About National Bank Holdings Corporation
National Bank Holdings Corporation is a bank holding company created to build a leading community bank franchise delivering high quality client service and committed to stakeholder results. Through its bank subsidiary, NBH Bank, National Bank Holdings Corporation operates a network of 89 banking centers, serving individual consumers, small, medium and large businesses, and government and non-profit entities. Its banking centers are located in its core footprint of Colorado, the greater Kansas City region, Texas, Utah and New Mexico. Its comprehensive residential mortgage banking group primarily serves the bank’s core footprint. NBH Bank operates under the following brand names: Community Banks of Colorado and Community Banks Mortgage, a division of NBH Bank, in Colorado, Bank Midwest and Bank Midwest Mortgage in Kansas and Missouri, and Hillcrest Bank and Hillcrest Bank Mortgage in Texas, Utah and New Mexico. Additional information about National Bank Holdings Corporation can be found at www.nationalbankholdings.com.
For more information visit: cobnks.com, bankmw.com, hillcrestbank.com or nbhbank.com. Or, follow us on any of our social media sites:
Community Banks of Colorado: facebook.com/cobnks, twitter.com/cobnks, instagram.com/cobnks;
Bank Midwest: facebook.com/bankmw, twitter.com/bank_mw, instagram.com/bankmw;
Hillcrest Bank: facebook.com/hillcrestbank, twitter.com/hillcrest_bank;
NBH Bank: twitter.com/nbhbank;
or connect with any of our brands on LinkedIn.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contain words such as “anticipate,” “believe,” “can,” “would,” “should,” “could,” “may,” “predict,” “seek,” “potential,” “will,” “estimate,” “target,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “intend” or similar expressions that relate to the Company’s strategy, plans or intentions. Forward-looking statements involve certain important risks, uncertainties and other factors, any of which could cause actual results to differ materially from those in such statements. Such factors include, without limitation, the “Risk Factors” referenced in our most recent Form 10-K filed with the Securities and Exchange Commission (SEC), other risks and uncertainties listed from time to time in our reports and documents filed with the SEC, and the following factors: ability to execute our business strategy; business and economic conditions; effects of a prolonged government shutdown; economic, market, operational, liquidity, credit and interest rate risks associated with the Company’s business; effects of any changes in trade, monetary and fiscal policies and laws; changes imposed by regulatory agencies to increase capital standards; effects of inflation, as well as, interest rate, securities market and monetary supply fluctuations; changes in the economy or supply-demand imbalances affecting local real estate values; changes in consumer spending, borrowings and savings habits; with respect to our mortgage business, the inability to negotiate fees with investors for the purchase or our loans or our obligation to indemnify purchasers or repurchase related loans; the Company’s ability to identify potential candidates for, consummate, integrate and realize operating efficiencies from, acquisitions, consolidations and other expansion opportunities; the Company's ability to realize anticipated benefits from enhancements or updates to its core operating systems from time to time without significant change in client service or risk to the Company's control environment; the Company's dependence on information technology and telecommunications systems of third party service providers and the risk of systems failures, interruptions or breaches of security; the Company’s ability to achieve organic loan and deposit growth and the composition of such growth; changes in sources and uses of funds; increased competition in the financial services industry; the effect of changes in accounting policies and practices; the share price of the Company’s stock; the Company's ability to realize deferred tax assets or the need for a valuation allowance; continued consolidation in the financial services industry; ability to maintain or increase market share and control expenses; costs and effects of changes in laws and regulations and of other legal and regulatory developments; technological changes; the timely development and acceptance of new products and services; the Company’s continued ability to attract, hire and maintain qualified personnel; ability to implement and/or improve operational management and other internal risk controls and processes and reporting system and procedures; regulatory limitations on dividends from the Company's bank subsidiary; changes in estimates of future loan reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; widespread natural and other disasters, pandemics, dislocations, political instability, acts of war or terrorist activities, cyberattacks or international hostilities; adverse effects due to the novel Coronavirus Disease 2019 (COVID-19) on the Company and its clients, counterparties, employees, and third-party service providers, and the adverse impacts on our business, financial position, results of operations, and prospects; impact of reputational risk; and success at managing the risks involved in the foregoing items. The Company can give no assurance that any goal or plan or expectation set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements. The forward-looking statements are made as of the date of this press release, and the Company does not intend, and assumes no obligation, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law.
Contact:
Analysts/Institutional Investors: Aldis Birkans, Chief Financial Officer, (720) 554-6640, ir@nationalbankholdings.com
Media: Jody Soper, Chief Marketing Officer, (303) 784-5925, Jody.Soper@nbhbank.com
NATIONAL BANK HOLDINGS CORPORATION
FINANCIAL SUMMARY
Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except share and per share data)
For the three months ended | For the years ended | |||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||
2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||
Total interest and dividend income | $ | 53,288 | $ | 52,302 | $ | 59,616 | $ | 218,002 | $ | 242,601 | ||||||||
Total interest expense | 4,732 | 5,587 | 9,228 | 25,056 | 36,771 | |||||||||||||
Net interest income | 48,556 | 46,715 | 50,388 | 192,946 | 205,830 | |||||||||||||
Taxable equivalent adjustment | 1,260 | 1,275 | 1,290 | 5,103 | 5,065 | |||||||||||||
Net interest income FTE(1) | 49,816 | 47,990 | 51,678 | 198,049 | 210,895 | |||||||||||||
Provision for loan losses | — | 1,200 | 1,180 | 17,630 | 11,643 | |||||||||||||
Net interest income after provision for loan losses FTE(1) | 49,816 | 46,790 | 50,498 | 180,419 | 199,252 | |||||||||||||
Non-interest income: | ||||||||||||||||||
Service charges | 4,000 | 3,742 | 4,416 | 14,962 | 17,895 | |||||||||||||
Bank card fees | 4,240 | 4,039 | 3,649 | 15,446 | 14,595 | |||||||||||||
Mortgage banking income | 23,138 | 34,943 | 10,309 | 102,384 | 42,346 | |||||||||||||
Other non-interest income | 1,695 | 1,733 | 1,740 | 7,079 | 7,601 | |||||||||||||
OREO-related income | 284 | 75 | 168 | 387 | 315 | |||||||||||||
Total non-interest income | 33,357 | 44,532 | 20,282 | 140,258 | 82,752 | |||||||||||||
Non-interest expense: | ||||||||||||||||||
Salaries and benefits | 32,919 | 38,614 | 30,653 | 141,170 | 122,732 | |||||||||||||
Occupancy and equipment | 6,619 | 6,878 | 6,908 | 27,473 | 27,336 | |||||||||||||
Professional fees | 864 | 714 | 658 | 2,946 | 3,256 | |||||||||||||
Other non-interest expense | 6,725 | 7,443 | 6,849 | 27,947 | 29,347 | |||||||||||||
Problem asset workout | 807 | 1,064 | 736 | 3,148 | 3,186 | |||||||||||||
(Gain) loss on sale of OREO, net | (13 | ) | (119 | ) | 7 | (38 | ) | (7,193 | ) | |||||||||
Core deposit intangible asset amortization | 296 | 295 | 296 | 1,183 | 1,183 | |||||||||||||
Banking center consolidation-related expense | 208 | 432 | — | 2,348 | 898 | |||||||||||||
Total non-interest expense | 48,425 | 55,321 | 46,107 | 206,177 | 180,745 | |||||||||||||
Income before income taxes FTE(1) | 34,748 | 36,001 | 24,673 | 114,500 | 101,259 | |||||||||||||
Taxable equivalent adjustment | 1,260 | 1,275 | 1,290 | 5,103 | 5,065 | |||||||||||||
Income before income taxes | 33,488 | 34,726 | 23,383 | 109,397 | 96,194 | |||||||||||||
Income tax expense | 6,319 | 6,833 | 3,864 | 20,806 | 15,829 | |||||||||||||
Net income | $ | 27,169 | $ | 27,893 | $ | 19,519 | $ | 88,591 | $ | 80,365 | ||||||||
Earnings per share - basic | $ | 0.88 | $ | 0.91 | $ | 0.62 | $ | 2.87 | $ | 2.57 | ||||||||
Earnings per share - diluted | 0.87 | 0.90 | 0.62 | 2.85 | 2.55 |
(1 | ) | Net interest income is presented on a GAAP basis and fully taxable equivalent (FTE) basis, as the Company believes this non-GAAP measure is the preferred industry measurement for this item. The FTE adjustment is for the tax benefit on certain tax exempt loans using the federal tax rate of |
NATIONAL BANK HOLDINGS CORPORATION
Consolidated Statements of Financial Condition (Unaudited)
(Dollars in thousands, except share and per share data)
December 31, 2020 | September 30, 2020 | December 31, 2019 | |||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 605,565 | $ | 445,103 | $ | 110,190 | |||||
Investment securities available-for-sale | 661,955 | 572,523 | 638,249 | ||||||||
Investment securities held-to-maturity | 376,615 | 320,001 | 182,884 | ||||||||
Non-marketable securities | 16,493 | 29,598 | 29,751 | ||||||||
Loans | 4,353,726 | 4,556,121 | 4,415,406 | ||||||||
Allowance for credit losses | (59,777 | ) | (60,979 | ) | (39,064 | ) | |||||
Loans, net | 4,293,949 | 4,495,142 | 4,376,342 | ||||||||
Loans held for sale | 247,813 | 273,003 | 117,444 | ||||||||
Other real estate owned | 4,730 | 4,590 | 7,300 | ||||||||
Premises and equipment, net | 106,982 | 108,860 | 112,151 | ||||||||
Goodwill | 115,027 | 115,027 | 115,027 | ||||||||
Intangible assets, net | 17,928 | 15,017 | 11,361 | ||||||||
Other assets | 212,893 | 221,812 | 194,813 | ||||||||
Total assets | $ | 6,659,950 | $ | 6,600,676 | $ | 5,895,512 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
Liabilities: | |||||||||||
Non-interest bearing demand deposits | $ | 2,111,045 | $ | 1,533,676 | $ | 1,184,945 | |||||
Interest bearing demand deposits | 514,286 | 976,133 | 738,496 | ||||||||
Savings and money market | 2,064,769 | 2,079,585 | 1,755,538 | ||||||||
Total transaction deposits | 4,690,100 | 4,589,394 | 3,678,979 | ||||||||
Time deposits | 986,132 | 1,027,066 | 1,058,153 | ||||||||
Total deposits | 5,676,232 | 5,616,460 | 4,737,132 | ||||||||
Securities sold under agreements to repurchase | 22,897 | 23,904 | 56,935 | ||||||||
Federal Home Loan Bank advances | — | — | 207,675 | ||||||||
Other liabilities | 140,130 | 160,955 | 126,850 | ||||||||
Total liabilities | 5,839,259 | 5,801,319 | 5,128,592 | ||||||||
Shareholders' equity: | |||||||||||
Common stock | 515 | 515 | 515 | ||||||||
Additional paid in capital | 1,011,362 | 1,010,145 | 1,009,223 | ||||||||
Retained earnings | 223,175 | 202,238 | 164,082 | ||||||||
Treasury stock | (424,127 | ) | (424,621 | ) | (408,962 | ) | |||||
Accumulated other comprehensive income, net of tax | 9,766 | 11,080 | 2,062 | ||||||||
Total shareholders' equity | 820,691 | 799,357 | 766,920 | ||||||||
Total liabilities and shareholders' equity | $ | 6,659,950 | $ | 6,600,676 | $ | 5,895,512 | |||||
SHARE DATA | |||||||||||
Average basic shares outstanding | 30,784,896 | 30,756,116 | 31,299,989 | ||||||||
Average diluted shares outstanding | 31,032,648 | 30,924,223 | 31,525,911 | ||||||||
Ending shares outstanding | 30,634,291 | 30,594,412 | 31,176,627 | ||||||||
Common book value per share | $ | 26.79 | $ | 26.13 | $ | 24.60 | |||||
Tangible common book value per share(1) (non-GAAP) | 23.09 | 22.40 | 20.89 | ||||||||
Tangible common book value per share, excluding accumulated other comprehensive income(1) (non-GAAP) | 22.77 | 22.04 | 20.83 | ||||||||
CAPITAL RATIOS | |||||||||||
Average equity to average assets | 12.27 | % | 12.22 | % | 12.91 | % | |||||
Tangible common equity to tangible assets(1) | 10.80 | % | 10.57 | % | 11.27 | % | |||||
Tier 1 leverage ratio | 10.70 | % | 10.60 | % | 11.04 | % | |||||
Common equity tier 1 risk-based capital ratio | 14.70 | % | 14.25 | % | 13.21 | % | |||||
Tier 1 risk-based capital ratio | 14.70 | % | 14.25 | % | 13.21 | % | |||||
Total risk-based capital ratio | 15.83 | % | 15.40 | % | 14.08 | % |
(1 | ) | Represents a non-GAAP financial measure. See non-GAAP reconciliations below. |
NATIONAL BANK HOLDINGS CORPORATION
Loan Portfolio
(Dollars in thousands)
Period End Loan Balances by Type
December 31, 2020 | December 31, 2020 | |||||||||||||
vs. September 30, 2020 | vs. December 31, 2019 | |||||||||||||
December 31, 2020 | September 30, 2020 | % Change | December 31, 2019 | % Change | ||||||||||
Originated: | ||||||||||||||
Commercial: | ||||||||||||||
Commercial and industrial | $ | 1,248,530 | $ | 1,228,550 | 1.6 | % | $ | 1,380,248 | (9.5 | )% | ||||
Municipal and non-profit | 870,410 | 883,065 | (1.4 | )% | 833,707 | 4.4 | % | |||||||
Owner-occupied commercial real estate | 464,417 | 460,487 | 0.9 | % | 414,477 | 12.0 | % | |||||||
Food and agribusiness | 205,189 | 210,818 | (2.7 | )% | 245,320 | (16.4 | )% | |||||||
PPP loans(1) | 176,106 | 348,257 | (49.4 | )% | — | 100.0 | % | |||||||
Total commercial | 2,964,652 | 3,131,177 | (5.3 | )% | 2,873,752 | 3.2 | % | |||||||
Commercial real estate non-owner occupied | 542,642 | 515,415 | 5.3 | % | 505,479 | 7.4 | % | |||||||
Residential real estate | 581,555 | 614,449 | (5.4 | )% | 651,656 | (10.8 | )% | |||||||
Consumer | 18,581 | 20,196 | (8.0 | )% | 21,030 | (11.6 | )% | |||||||
Total originated | 4,107,430 | 4,281,237 | (4.1 | )% | 4,051,917 | 1.4 | % | |||||||
Acquired: | ||||||||||||||
Commercial: | ||||||||||||||
Commercial and industrial | 22,102 | 23,984 | (7.8 | )% | 31,284 | (29.4 | )% | |||||||
Municipal and non-profit | 381 | 576 | (33.9 | )% | 3,819 | (90.0 | )% | |||||||
Owner-occupied commercial real estate | 51,821 | 55,929 | (7.3 | )% | 75,645 | (31.5 | )% | |||||||
Food and agribusiness | 5,108 | 5,740 | (11.0 | )% | 7,807 | (34.6 | )% | |||||||
Total commercial | 79,412 | 86,229 | (7.9 | )% | 118,555 | (33.0 | )% | |||||||
Commercial real estate non-owner occupied | 89,354 | 101,672 | (12.1 | )% | 125,426 | (28.8 | )% | |||||||
Residential real estate | 77,105 | 86,478 | (10.8 | )% | 118,762 | (35.1 | )% | |||||||
Consumer | 425 | 505 | (15.8 | )% | 746 | (43.0 | )% | |||||||
Total acquired | 246,296 | 274,884 | (10.4 | )% | 363,489 | (32.2 | )% | |||||||
Total loans | $ | 4,353,726 | $ | 4,556,121 | (4.4 | )% | $ | 4,415,406 | (1.4 | )% |
(1 | ) | PPP loan balances are net of fees and costs and include principal totaling |
Originations(1)
Fourth quarter | Third quarter | Second quarter | First quarter | Fourth quarter | ||||||||||||
2020 | 2020 | 2020 | 2020 | 2019 | ||||||||||||
Commercial: | ||||||||||||||||
Commercial and industrial | $ | 96,625 | $ | 11,354 | $ | (8,726 | ) | $ | 118,999 | $ | 69,048 | |||||
Municipal and non-profit | 25,348 | 6,083 | 49,679 | 13,968 | 46,114 | |||||||||||
Owner occupied commercial real estate | 36,085 | 23,758 | 22,078 | 37,372 | 46,965 | |||||||||||
Food and agribusiness | 19,191 | 13,876 | (10,480 | ) | (6,787 | ) | 20,348 | |||||||||
PPP loans | — | 122 | 358,798 | — | — | |||||||||||
Total commercial | 177,249 | 55,193 | 411,349 | 163,552 | 182,475 | |||||||||||
Commercial real estate non-owner occupied | 52,018 | 24,937 | 18,992 | 80,792 | 41,256 | |||||||||||
Residential real estate | 41,355 | 49,786 | 29,024 | 46,273 | 43,493 | |||||||||||
Consumer | 1,858 | 2,980 | 2,206 | 2,320 | 2,315 | |||||||||||
Total | $ | 272,480 | $ | 132,896 | $ | 461,571 | $ | 292,937 | $ | 269,539 |
(1 | ) | Originations are defined as closed end funded loans and net fundings under revolving lines of credit. Net funding under revolving lines of credit were |
NATIONAL BANK HOLDINGS CORPORATION
Summary of Net Interest Margin
(Dollars in thousands)
For the three months ended | For the three months ended | For the three months ended | |||||||||||||||||||||||||||||||
December 31, 2020 | September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | ||||||||||||||||||||||||||||
balance | Interest | rate | balance | Interest | rate | balance | Interest | rate | |||||||||||||||||||||||||
Interest earning assets: | |||||||||||||||||||||||||||||||||
Originated loans FTE(1)(2) | $ | 4,129,155 | $ | 43,200 | 4.16 | % | $ | 4,343,335 | $ | 40,973 | 3.75 | % | $ | 4,002,813 | $ | 46,466 | 4.61 | % | |||||||||||||||
Acquired loans | 259,233 | 5,715 | 8.77 | % | 284,653 | 6,593 | 9.21 | % | 377,330 | 7,525 | 7.91 | % | |||||||||||||||||||||
Loans held for sale | 248,326 | 1,699 | 2.72 | % | 230,390 | 1,683 | 2.91 | % | 181,550 | 1,657 | 3.62 | % | |||||||||||||||||||||
Investment securities available-for-sale | 574,642 | 2,177 | 1.52 | % | 559,330 | 2,784 | 1.99 | % | 642,297 | 3,413 | 2.13 | % | |||||||||||||||||||||
Investment securities held-to-maturity | 369,812 | 1,410 | 1.53 | % | 242,511 | 1,253 | 2.07 | % | 187,274 | 1,257 | 2.68 | % | |||||||||||||||||||||
Other securities | 18,195 | 212 | 4.66 | % | 29,640 | 221 | 2.98 | % | 29,681 | 471 | 6.35 | % | |||||||||||||||||||||
Interest earning deposits and securities purchased under agreements to resell | 509,150 | 135 | 0.11 | % | 254,931 | 70 | 0.11 | % | 17,096 | 117 | 2.72 | % | |||||||||||||||||||||
Total interest earning assets FTE(2) | $ | 6,108,513 | $ | 54,548 | 3.55 | % | $ | 5,944,790 | $ | 53,577 | 3.59 | % | $ | 5,438,041 | $ | 60,906 | 4.44 | % | |||||||||||||||
Cash and due from banks | $ | 73,768 | $ | 73,274 | $ | 76,568 | |||||||||||||||||||||||||||
Other assets | 514,053 | 525,324 | 448,596 | ||||||||||||||||||||||||||||||
Allowance for credit losses | (60,844 | ) | (60,372 | ) | (38,746 | ) | |||||||||||||||||||||||||||
Total assets | $ | 6,635,490 | $ | 6,483,016 | $ | 5,924,459 | |||||||||||||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||||||||||||||
Interest bearing demand, savings and money market deposits | $ | 2,746,597 | $ | 1,776 | 0.26 | % | $ | 2,957,604 | $ | 1,990 | 0.27 | % | $ | 2,429,417 | $ | 3,101 | 0.51 | % | |||||||||||||||
Time deposits | 1,008,297 | 2,949 | 1.16 | % | 1,038,983 | 3,501 | 1.34 | % | 1,062,511 | 4,464 | 1.67 | % | |||||||||||||||||||||
Securities sold under agreements to repurchase | 23,410 | 7 | 0.12 | % | 22,667 | 10 | 0.18 | % | 57,870 | 149 | 1.02 | % | |||||||||||||||||||||
Federal Home Loan Bank advances | — | — | 0.00 | % | 1,141 | 86 | 29.99 | % | 301,433 | 1,514 | 1.99 | % | |||||||||||||||||||||
Total interest bearing liabilities | $ | 3,778,304 | $ | 4,732 | 0.50 | % | $ | 4,020,395 | $ | 5,587 | 0.55 | % | $ | 3,851,231 | $ | 9,228 | 0.95 | % | |||||||||||||||
Demand deposits | $ | 1,898,171 | $ | 1,515,058 | $ | 1,177,958 | |||||||||||||||||||||||||||
Other liabilities | 144,532 | 155,205 | 130,576 | ||||||||||||||||||||||||||||||
Total liabilities | 5,821,007 | 5,690,658 | 5,159,765 | ||||||||||||||||||||||||||||||
Shareholders' equity | 814,483 | 792,358 | 764,694 | ||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 6,635,490 | $ | 6,483,016 | $ | 5,924,459 | |||||||||||||||||||||||||||
Net interest income FTE(2) | $ | 49,816 | $ | 47,990 | $ | 51,678 | |||||||||||||||||||||||||||
Interest rate spread FTE(2) | 3.05 | % | 3.04 | % | 3.49 | % | |||||||||||||||||||||||||||
Net interest earning assets | $ | 2,330,209 | $ | 1,924,395 | $ | 1,586,810 | |||||||||||||||||||||||||||
Net interest margin FTE(2) | 3.24 | % | 3.21 | % | 3.77 | % | |||||||||||||||||||||||||||
Average transaction deposits | $ | 4,644,768 | $ | 4,472,662 | $ | 3,607,375 | |||||||||||||||||||||||||||
Average total deposits | 5,653,065 | 5,511,645 | 4,669,886 | ||||||||||||||||||||||||||||||
Ratio of average interest earning assets to average interest bearing liabilities | 161.67 | % | 147.87 | % | 141.20 | % |
(1 | ) | Originated loans are net of deferred loan fees, less costs, which are included in interest income over the life of the loan. | |
(2 | ) | Presented on a fully taxable equivalent basis using the statutory tax rate of |
NATIONAL BANK HOLDINGS CORPORATION
Summary of Net Interest Margin
(Dollars in thousands)
For the year ended December 31, 2020 | For the year ended December 31, 2019 | ||||||||||||||||||
Average | Average | Average | Average | ||||||||||||||||
balance | Interest | rate | balance | Interest | rate | ||||||||||||||
Interest earning assets: | |||||||||||||||||||
Originated loans FTE(1)(2) | $ | 4,237,091 | $ | 171,592 | 4.05 | % | $ | 3,838,229 | $ | 183,502 | 4.78 | % | |||||||
Acquired loans | 299,901 | 27,909 | 9.31 | % | 443,025 | 35,992 | 8.12 | % | |||||||||||
Loans held for sale | 185,182 | 5,628 | 3.04 | % | 113,183 | 4,407 | 3.89 | % | |||||||||||
Investment securities available-for-sale | 591,870 | 11,406 | 1.93 | % | 713,686 | 15,472 | 2.17 | % | |||||||||||
Investment securities held-to-maturity | 248,006 | 5,099 | 2.06 | % | 207,784 | 5,825 | 2.80 | % | |||||||||||
Other securities | 26,903 | 1,157 | 4.30 | % | 28,060 | 1,770 | 6.31 | % | |||||||||||
Interest earning deposits and securities purchased under agreements to resell | 206,911 | 314 | 0.15 | % | 24,106 | 698 | 2.90 | % | |||||||||||
Total interest earning assets FTE(2) | $ | 5,795,864 | $ | 223,105 | 3.85 | % | $ | 5,368,073 | $ | 247,666 | 4.61 | % | |||||||
Cash and due from banks | $ | 74,461 | $ | 76,788 | |||||||||||||||
Other assets | 511,721 | 430,402 | |||||||||||||||||
Allowance for credit losses | (55,778 | ) | (38,142 | ) | |||||||||||||||
Total assets | $ | 6,326,268 | $ | 5,837,121 | |||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||
Interest bearing demand, savings and money market deposits | $ | 2,730,857 | $ | 8,605 | 0.32 | % | $ | 2,426,963 | $ | 13,277 | 0.55 | % | |||||||
Time deposits | 1,038,107 | 15,024 | 1.45 | % | 1,074,506 | 16,526 | 1.54 | % | |||||||||||
Securities sold under agreements to repurchase | 28,585 | 132 | 0.46 | % | 60,445 | 668 | 1.11 | % | |||||||||||
Federal Home Loan Bank advances | 95,418 | 1,295 | 1.36 | % | 269,207 | 6,300 | 2.34 | % | |||||||||||
Total interest bearing liabilities | $ | 3,892,967 | $ | 25,056 | 0.64 | % | $ | 3,831,121 | $ | 36,771 | 0.96 | % | |||||||
Demand deposits | $ | 1,497,940 | $ | 1,159,080 | |||||||||||||||
Other liabilities | 147,075 | 108,997 | |||||||||||||||||
Total liabilities | 5,537,982 | 5,099,198 | |||||||||||||||||
Shareholders' equity | 788,286 | 737,923 | |||||||||||||||||
Total liabilities and shareholders' equity | $ | 6,326,268 | $ | 5,837,121 | |||||||||||||||
Net interest income FTE(2) | $ | 198,049 | $ | 210,895 | |||||||||||||||
Interest rate spread FTE(2) | 3.21 | % | 3.65 | % | |||||||||||||||
Net interest earning assets | $ | 1,902,897 | $ | 1,536,952 | |||||||||||||||
Net interest margin FTE(2) | 3.42 | % | 3.93 | % | |||||||||||||||
Average transaction deposits | $ | 4,228,797 | $ | 3,586,043 | |||||||||||||||
Average total deposits | 5,266,904 | 4,660,549 | |||||||||||||||||
Ratio of average interest earning assets to average interest bearing liabilities | 148.88 | % | 140.12 | % |
(1 | ) | Originated loans are net of deferred loan fees, less costs, which are included in interest income over the life of the loan. | |
(2 | ) | Presented on a fully taxable equivalent basis using the statutory tax rate of |
NATIONAL BANK HOLDINGS CORPORATION
Allowance for Credit Losses and Asset Quality
(Dollars in thousands)
Allowance for Credit Losses Analysis
As of and for the three months ended | |||||||||||
December 31, 2020 | September 30, 2020 | December 31, 2019 | |||||||||
Beginning allowance for credit losses | $ | 60,979 | $ | 60,465 | $ | 38,710 | |||||
Charge-offs | (1,259 | ) | (619 | ) | (937 | ) | |||||
Recoveries | 57 | 133 | 111 | ||||||||
Provision | — | 1,000 | 1,180 | ||||||||
Ending allowance for credit losses ("ACL") | $ | 59,777 | $ | 60,979 | $ | 39,064 | |||||
Ratio of annualized net charge-offs to average total loans during the period | 0.11 | % | 0.04 | % | 0.07 | % | |||||
Ratio of annualized net charge-offs to average total loans excluding PPP loans during the period | 0.11 | % | 0.04 | % | 0.07 | % | |||||
Ratio of ACL to total loans outstanding at period end | 1.37 | % | 1.34 | % | 0.88 | % | |||||
Ratio of ACL to total loans outstanding excluding PPP loans at period end | 1.43 | % | 1.45 | % | 0.88 | % | |||||
Ratio of ACL to total non-performing loans at period end | 293.21 | % | 322.95 | % | 179.62 | % | |||||
Total loans | $ | 4,353,726 | $ | 4,556,121 | $ | 4,415,406 | |||||
Average total loans during the period | 4,431,694 | 4,677,630 | 4,401,803 | ||||||||
Average total loans excluding PPP loans during the period | 4,160,520 | 4,329,458 | 4,401,803 | ||||||||
Total non-performing loans | 20,387 | 18,882 | 21,748 |
Past Due and Non-accrual Loans
December 31, 2020 | September 30, 2020 | December 31, 2019 | |||||||||
Loans 30-89 days past due and still accruing interest | $ | 968 | $ | 6,587 | $ | 6,349 | |||||
Loans 90 days past due and still accruing interest | 162 | 161 | 1,662 | ||||||||
Non-accrual loans | 20,387 | 18,882 | 21,748 | ||||||||
Total past due and non-accrual loans | $ | 21,517 | $ | 25,630 | $ | 29,759 | |||||
Total 90 days past due and still accruing interest and non-accrual loans to total loans | 0.47 | % | 0.42 | % | 0.53 | % |
Asset Quality Data
December 31, 2020 | September 30, 2020 | December 31, 2019 | |||||||||
Non-performing loans | $ | 20,387 | $ | 18,882 | $ | 21,748 | |||||
OREO | 4,730 | 4,590 | 7,300 | ||||||||
Other repossessed assets | 17 | — | — | ||||||||
Total non-performing assets | $ |
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{
"@type": "Question",
"name": "What were National Bank Holdings' earnings for Q4 2020?",
"acceptedAnswer": {
"@type": "Answer",
"text": "National Bank Holdings reported a net income of $27.2 million, or $0.87 per diluted share for Q4 2020."
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{
"@type": "Question",
"name": "How did National Bank Holdings perform in 2020 compared to 2019?",
"acceptedAnswer": {
"@type": "Answer",
"text": "In 2020, National Bank Holdings achieved a record net income of $88.6 million, up 10.2% from $80.4 million in 2019."
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{
"@type": "Question",
"name": "What was the Common Equity Tier 1 ratio for National Bank Holdings?",
"acceptedAnswer": {
"@type": "Answer",
"text": "The Common Equity Tier 1 ratio for National Bank Holdings was 14.70% as of December 31, 2020."
}
},
{
"@type": "Question",
"name": "How much did average transaction deposits grow in Q4 2020 for NBHC?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Average transaction deposits increased by 28.8% in Q4 2020 compared to the same period in the prior year."
}
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{
"@type": "Question",
"name": "What challenges did National Bank Holdings face in Q4 2020?",
"acceptedAnswer": {
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FAQ
What were National Bank Holdings' earnings for Q4 2020?
National Bank Holdings reported a net income of $27.2 million, or $0.87 per diluted share for Q4 2020.
How did National Bank Holdings perform in 2020 compared to 2019?
In 2020, National Bank Holdings achieved a record net income of $88.6 million, up 10.2% from $80.4 million in 2019.
What was the Common Equity Tier 1 ratio for National Bank Holdings?
The Common Equity Tier 1 ratio for National Bank Holdings was 14.70% as of December 31, 2020.
How much did average transaction deposits grow in Q4 2020 for NBHC?
Average transaction deposits increased by 28.8% in Q4 2020 compared to the same period in the prior year.
What challenges did National Bank Holdings face in Q4 2020?
National Bank Holdings experienced a decrease in total loans by $202.4 million, largely due to PPP loan forgiveness.
NATIONAL BANK HOLDINGS CORP.
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Banks - Regional
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United States of America
GREENWOOD VILLAGE
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