National Bank Holdings Corporation Announces Third Quarter 2024 Financial Results and Increase to Quarterly Dividend
National Bank Holdings (NYSE: NBHC) reported third quarter 2024 earnings of $33.1 million, or $0.86 per diluted share, a 26.7% increase from the previous quarter. The company announced a 3.6% increase in quarterly dividend to $0.29 per share. Key highlights include:
- Net interest margin expansion of 11 basis points to 3.87%
- Return on average tangible common equity of 14.84%
- Lowest non-performing loan ratio since early 2023
- Common Equity Tier 1 capital ratio of 12.88%
- Fully taxable equivalent net interest income increased $4.2 million to $89.5 million
- Non-interest income increased $4.4 million to $18.4 million
- Loans totaled $7.7 billion, consistent with the prior quarter
- Average total deposits increased $21.3 million to $8.4 billion
The company's CEO, Tim Laney, emphasized the strength of their balance sheet, capital position, and earnings, as well as their disciplined approach to loan and deposit pricing.
National Bank Holdings (NYSE: NBHC) ha riportato un utile del terzo trimestre 2024 di 33,1 milioni di dollari, ovvero 0,86 dollari per azione diluita, un aumento del 26,7% rispetto al trimestre precedente. L'azienda ha annunciato un aumento del 3,6% nel dividendo trimestrale a 0,29 dollari per azione. I principali punti salienti includono:
- Espansione del margine di interesse netto di 11 punti base al 3,87%
- Rendimento medio del patrimonio netto tangibile del 14,84%
- Il più basso rapporto di prestiti non performanti da inizio 2023
- Rapporto di capitale Common Equity Tier 1 del 12,88%
- L'utile netto di interesse equivalente completamente tassabile è aumentato di 4,2 milioni di dollari a 89,5 milioni di dollari
- Le entrate da non interesse sono aumentate di 4,4 milioni di dollari a 18,4 milioni di dollari
- I prestiti hanno raggiunto 7,7 miliardi di dollari, costanti rispetto al trimestre precedente
- I depositi totali medi sono aumentati di 21,3 milioni di dollari a 8,4 miliardi di dollari
Il CEO dell'azienda, Tim Laney, ha sottolineato la solidità del loro bilancio, la posizione di capitale e gli utili, così come il loro approccio disciplinato nella valutazione dei prestiti e dei depositi.
National Bank Holdings (NYSE: NBHC) reportó ganancias del tercer trimestre de 2024 de 33,1 millones de dólares, o 0,86 dólares por acción diluida, un aumento del 26,7% en comparación con el trimestre anterior. La compañía anunció un aumento del 3,6% en el dividendo trimestral a 0,29 dólares por acción. Los puntos destacados incluyen:
- Expansión del margen de interés neto de 11 puntos básicos al 3,87%
- Retorno sobre el patrimonio tangible común promedio del 14,84%
- La tasa de préstamos no productivos más baja desde principios de 2023
- Ratio de capital del Common Equity Tier 1 del 12,88%
- Ingresos netos de interés equivalentes completamente gravables aumentaron 4,2 millones de dólares a 89,5 millones de dólares
- Ingresos no por interés aumentaron 4,4 millones de dólares a 18,4 millones de dólares
- Los préstamos totalizaron 7,7 mil millones de dólares, consistente con el trimestre anterior
- Los depósitos totales promedios aumentaron en 21,3 millones de dólares a 8,4 mil millones de dólares
El CEO de la compañía, Tim Laney, enfatizó la solidez de su balance, la posición de capital y las ganancias, así como su enfoque disciplinado en la fijación de precios de préstamos y depósitos.
내셔널 뱅크 홀딩스 (NYSE: NBHC)는 2024년 3분기 수익으로 3,310만 달러, 즉 희석 주당 0.86 달러를 보고했으며, 이는 이전 분기 대비 26.7% 증가한 수치입니다. 회사는 분기 배당금을 3.6% 인상하여 주당 0.29 달러로 책정하였습니다. 주요 하이라이트는 다음과 같습니다:
- 순이자 마진이 11베이시스 포인트 확장되어 3.87%에 도달
- 평균 유동 지분 자본 수익률이 14.84%
- 2023년 초 이후 가장 낮은 부실 채권 비율
- 보통주 자본 비율 Common Equity Tier 1이 12.88%
- 완전 과세 대등 순이자 수익 420만 달러 증가하여 8,950만 달러
- 비이자 수익이 440만 달러 증가하여 1,840만 달러
- 대출 총액이 77억 달러로 이전 분기와 일치
- 평균 총 예금이 2,130만 달러 증가하여 84억 달러
회사의 CEO인 팀 레이니는 자산 부채의 강점, 자본 위치, 수익성을 강조하며, 대출과 예금 가격 책정에 대한 규율 있는 접근 방식을 강조하였습니다.
National Bank Holdings (NYSE: NBHC) a annoncé des bénéfices pour le troisième trimestre 2024 de 33,1 millions de dollars, soit 0,86 dollar par action diluée, ce qui représente une augmentation de 26,7 % par rapport au trimestre précédent. L'entreprise a annoncé une augmentation de 3,6 % du dividende trimestriel à 0,29 dollar par action. Les points saillants incluent :
- Expansion de la marge d'intérêt nette de 11 points de base à 3,87 %
- Rendement sur le capital tangible moyen de 14,84 %
- Ratio de prêts non performants le plus bas depuis début 2023
- Ratio de capital Common Equity Tier 1 de 12,88 %
- Les revenus nets d'intérêts équivalents pleinement imposables ont augmenté de 4,2 millions de dollars pour atteindre 89,5 millions de dollars
- Les revenus non liés aux intérêts ont augmenté de 4,4 millions de dollars pour atteindre 18,4 millions de dollars
- Les prêts totalisaient 7,7 milliards de dollars, constants par rapport au trimestre précédent
- Les dépôts totaux moyens ont augmenté de 21,3 millions de dollars pour atteindre 8,4 milliards de dollars
Le PDG de l'entreprise, Tim Laney, a souligné la solidité de leur bilan, de leur position de capital et de leurs bénéfices, ainsi que leur approche disciplinée en matière de tarification des prêts et des dépôts.
National Bank Holdings (NYSE: NBHC) berichtete über Gewinne im dritten Quartal 2024 von 33,1 Millionen Dollar bzw. 0,86 Dollar pro verwässerter Aktie, was einen Anstieg von 26,7 % im Vergleich zum vorherigen Quartal darstellt. Das Unternehmen kündigte eine Erhöhung der vierteljährlichen Dividende um 3,6% auf 0,29 Dollar pro Aktie an. Zu den wichtigsten Highlights gehören:
- Erweiterung der Nettozinsspanne um 11 Basispunkte auf 3,87%
- Gesamtrendite auf das durchschnittliche tangible Eigenkapital von 14,84%
- Niedrigster Anteil an notleidenden Krediten seit Anfang 2023
- Tier 1 Kapitalquote von 12,88%
- Vollständig steuerpflichtige equivalent Nettozinseinnahmen erhöhten sich um 4,2 Millionen Dollar auf 89,5 Millionen Dollar
- Nicht-Zinserträge stiegen um 4,4 Millionen Dollar auf 18,4 Millionen Dollar
- Kredite beliefen sich auf 7,7 Milliarden Dollar, konstant im Vergleich zum vorherigen Quartal
- Durchschnittliche Gesamteinlagen stiegen um 21,3 Millionen Dollar auf 8,4 Milliarden Dollar
Der CEO des Unternehmens, Tim Laney, betonte die Stärke ihrer Bilanz, Kapitalposition und Einnahmen sowie ihren disziplinierten Ansatz bei der Preisgestaltung von Krediten und Einlagen.
- Quarterly earnings increased 26.7% to $33.1 million or $0.86 per diluted share
- Net interest margin expanded by 11 basis points to 3.87%
- Return on average tangible common equity increased to 14.84%
- Quarterly dividend increased by 3.6% to $0.29 per share
- Non-performing loans decreased to 0.31% of total loans
- Non-interest income increased $4.4 million to $18.4 million
- Average total deposits increased $21.3 million to $8.4 billion
- Year-to-date net income decreased compared to the same period in 2023
- Year-to-date fully taxable equivalent net interest income decreased compared to 2023
- Year-to-date net interest margin narrowed by 32 basis points compared to 2023
- Provision expense for credit losses increased compared to the same period in 2023
Insights
National Bank Holdings (NBHC) reported solid Q3 2024 results, with notable improvements in key financial metrics. Net income increased by
Highlights include:
- Net interest margin expansion of 11 basis points to
3.87% - Return on average tangible common equity increased to
14.84% - Non-performing loans ratio decreased to
0.31% , the lowest since early 2023 - Common Equity Tier 1 capital ratio remains strong at
12.88%
The company's decision to increase its quarterly dividend by
NBHC's Q3 results demonstrate resilience in a challenging banking environment. The bank's focus on disciplined loan and deposit pricing has paid off, evidenced by the 11 basis point expansion in net interest margin. This is particularly noteworthy given the industry-wide pressure on margins due to rising deposit costs.
The bank's strong capital position, with a CET1 ratio of
The diversification of revenue streams, as seen in the growth of core banking fees and other non-interest income, is a positive sign for long-term stability. However, the slight decrease in mortgage banking income reflects the broader challenges in the housing market due to higher interest rates.
Investors should view NBHC's performance positively, especially considering its prudent risk management and strong asset quality metrics.
DENVER, Oct. 22, 2024 (GLOBE NEWSWIRE) -- National Bank Holdings Corporation (NYSE: NBHC) reported:
For the quarter(1) | For the year(1) | |||||||||||||||||||
3Q24 | 2Q24 | 3Q23 | 2024 | 2023 | ||||||||||||||||
Net income ( | $ | 33,105 | $ | 26,135 | $ | 36,087 | $ | 90,631 | $ | 108,927 | ||||||||||
Earnings per share - diluted | $ | 0.86 | $ | 0.68 | $ | 0.94 | $ | 2.36 | $ | 2.85 | ||||||||||
Return on average assets | 1.32 | % | 1.06 | % | 1.46 | % | 1.22 | % | 1.50 | % | ||||||||||
Return on average tangible assets(2) | 1.43 | % | 1.17 | % | 1.58 | % | 1.33 | % | 1.61 | % | ||||||||||
Return on average equity | 10.33 | % | 8.46 | % | 12.26 | % | 9.70 | % | 12.71 | % | ||||||||||
Return on average tangible common equity(2) | 14.84 | % | 12.44 | % | 18.38 | % | 14.14 | % | 18.81 | % |
(1 | ) | Ratios are annualized. | |
(2 | ) | See non-GAAP reconciliations below. | |
In announcing these results, Chief Executive Officer Tim Laney shared, “We delivered quarterly earnings of
Mr. Laney added, “We continue to remain vigilant in monitoring our loan portfolio, delivering the lowest non-performing loan ratio since early 2023. Our teams adhere to prudent, disciplined approaches that limit concentrations in our loan book and our depositor base, and we regularly perform robust stress testing on our loan portfolio. We enter the fourth quarter from a position of strength and stability and expect to finish the year strong. We believe our Common Equity Tier 1 capital ratio of
Third Quarter 2024 Results
(All comparisons refer to the second quarter of 2024, except as noted)
Net income increased
Net Interest Income
Fully taxable equivalent net interest income increased
Loans
Loans totaled
Asset Quality and Provision for Credit Losses
The Company recorded
Deposits
Average total deposits increased
Non-Interest Income
Non-interest income increased
Non-Interest Expense
Non-interest expense totaled
Income tax expense increased
Capital
Capital ratios continue to be strong and in excess of federal bank regulatory agency “well capitalized” thresholds. The tier 1 leverage ratio totaled
Common book value per share increased
Dividend Announcement
The quarterly cash dividend will increase
Year-Over-Year Review
(All comparisons refer to the first nine months of 2023, except as noted)
Net income totaled
Fully taxable equivalent net interest income totaled
Loans outstanding totaled
The Company recorded
Average total deposits increased
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 Wednesday, October 23, 2024. Interested parties may listen to this call by dialing (888) 204-4368 using the participant passcode of 3279876 and asking for the NBHC Q3 2024 Earnings Call. The earnings release and a link to the replay of the call will be available on the Company’s website at www.nationalbankholdings.com by visiting the investor relations area.
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 subsidiaries, NBH Bank and Bank of Jackson Hole Trust, National Bank Holdings Corporation operates a network of over 90 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, Utah, Wyoming, Texas, New Mexico and Idaho. Its comprehensive residential mortgage banking group primarily serves the bank’s core footprint. Its trust and wealth management business is operated in its core footprint under the Bank of Jackson Hole Trust charter. NBH Bank operates under a single state charter through the following brand names as divisions of NBH Bank: in Colorado, Community Banks of Colorado and Community Banks Mortgage; in Kansas and Missouri, Bank Midwest and Bank Midwest Mortgage; in Texas, Utah, New Mexico and Idaho, Hillcrest Bank and Hillcrest Bank Mortgage; and in Wyoming, Bank of Jackson Hole and Bank of Jackson Hole Mortgage. Additional information about National Bank Holdings Corporation can be found at www.nationalbankholdings.com.
For more information visit: cobnks.com, bankmw.com, hillcrestbank.com, bankofjacksonhole.com, or nbhbank.com, or connect with any of our brands on LinkedIn.
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,” “non-interest expense excluding other intangible assets amortization,” “efficiency ratio excluding other intangible assets amortization,” “net income excluding the impact of other intangible assets amortization expense, after tax,” “pre-provision net revenue,” 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.
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: the impact of potential regulatory changes to capital requirements, treatment of investment securities and FDIC deposit insurance levels and costs; our ability to execute our business strategy, including our digital strategy, as well as changes in our business strategy or development plans; business and economic conditions; effects of any potential government shutdowns; economic, market, operational, liquidity, credit and interest rate risks associated with the Company’s business, including increased competition for deposits due to prevailing market interest rates and banking sector volatility; effects of any changes in trade, monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; 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; changes in the fair value of our investment securities due to market conditions outside of our control; financial or reputational impacts associated with the increased prevalence of fraud or other financial crimes; with respect to our mortgage business, the inability to negotiate fees with investors for the purchase of our loans or our obligation to indemnify purchasers or repurchase related loans if the loans fail to meet certain criteria, or higher rate of delinquencies and defaults as a result of the geographic concentration of our servicing portfolio; the Company’s ability to identify potential candidates for, obtain regulatory approval for, and consummate, integrate and realize operating efficiencies from, acquisitions, consolidations and other expansion opportunities; our ability to integrate acquisitions or consolidations and to achieve synergies, operating efficiencies and/or other expected benefits within expected timeframes, or at all, or within expected cost projections, and to preserve the goodwill of acquired financial institutions; 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, including those that could result in disclosure or misuse of confidential or proprietary client or other information; the Company’s ability to achieve organic loan and deposit growth and the competition for, and composition of, such growth; changes in sources and uses of funds; increased competition in the financial services industry; regulatory and financial impacts associated with the Company growing to over
Contacts:
Analysts/Institutional Investors:
Emily Gooden, Chief Accounting Officer and Investor Relations Director, (720) 554-6640, ir@nationalbankholdings.com
Nicole Van Denabeele, Chief Financial Officer, (720) 529-3370, 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 nine months ended | |||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||
Total interest and dividend income | $ | 138,003 | $ | 132,447 | $ | 126,110 | $ | 402,182 | $ | 360,712 | ||||
Total interest expense | 50,350 | 48,873 | 38,333 | 146,925 | 88,262 | |||||||||
Net interest income | 87,653 | 83,574 | 87,777 | 255,257 | 272,450 | |||||||||
Taxable equivalent adjustment | 1,816 | 1,711 | 1,575 | 5,220 | 4,432 | |||||||||
Net interest income FTE(1) | 89,469 | 85,285 | 89,352 | 260,477 | 276,882 | |||||||||
Provision expense for credit losses | 2,000 | 2,776 | 1,125 | 4,776 | 3,725 | |||||||||
Net interest income after provision for credit losses FTE(1) | 87,469 | 82,509 | 88,227 | 255,701 | 273,157 | |||||||||
Non-interest income: | ||||||||||||||
Service charges | 4,912 | 4,295 | 4,849 | 13,598 | 13,394 | |||||||||
Bank card fees | 4,832 | 4,882 | 4,993 | 14,292 | 14,721 | |||||||||
Mortgage banking income | 2,981 | 3,296 | 4,688 | 8,932 | 11,614 | |||||||||
Other non-interest income | 5,664 | 1,556 | 4,835 | 13,290 | 8,124 | |||||||||
Total non-interest income | 18,389 | 14,029 | 19,365 | 50,112 | 47,853 | |||||||||
Non-interest expense: | ||||||||||||||
Salaries and benefits | 37,331 | 36,933 | 35,027 | 110,784 | 103,231 | |||||||||
Occupancy and equipment | 9,697 | 10,120 | 9,167 | 29,758 | 27,366 | |||||||||
Professional fees | 2,111 | 1,706 | 2,215 | 5,463 | 7,951 | |||||||||
Data processing | 4,398 | 4,117 | 3,546 | 12,581 | 10,257 | |||||||||
Other non-interest expense | 8,648 | 8,222 | 8,640 | 25,523 | 25,693 | |||||||||
Other intangible assets amortization | 1,977 | 1,977 | 2,008 | 5,962 | 5,378 | |||||||||
Total non-interest expense | 64,162 | 63,075 | 60,603 | 190,071 | 179,876 | |||||||||
Income before income taxes FTE(1) | 41,696 | 33,463 | 46,989 | 115,742 | 141,134 | |||||||||
Taxable equivalent adjustment | 1,816 | 1,711 | 1,575 | 5,220 | 4,432 | |||||||||
Income before income taxes | 39,880 | 31,752 | 45,414 | 110,522 | 136,702 | |||||||||
Income tax expense | 6,775 | 5,617 | 9,327 | 19,891 | 27,775 | |||||||||
Net income | $ | 33,105 | $ | 26,135 | $ | 36,087 | $ | 90,631 | $ | 108,927 | ||||
Earnings per share - basic | $ | 0.86 | $ | 0.68 | $ | 0.95 | $ | 2.37 | $ | 2.87 | ||||
Earnings per share - diluted | 0.86 | 0.68 | 0.94 | 2.36 | 2.85 |
(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)
September 30, 2024 | June 30, 2024 | December 31, 2023 | September 30, 2023 | ||||||||||||
ASSETS | |||||||||||||||
Cash and cash equivalents | $ | 180,796 | $ | 144,993 | $ | 190,826 | $ | 291,291 | |||||||
Investment securities available-for-sale | 708,987 | 691,076 | 628,829 | 620,445 | |||||||||||
Investment securities held-to-maturity | 538,157 | 554,686 | 585,052 | 600,501 | |||||||||||
Non-marketable securities | 72,353 | 72,987 | 90,477 | 87,817 | |||||||||||
Loans | 7,714,495 | 7,722,153 | 7,698,758 | 7,478,438 | |||||||||||
Allowance for credit losses | (95,047 | ) | (96,457 | ) | (97,947 | ) | (93,446 | ) | |||||||
Loans, net | 7,619,448 | 7,625,696 | 7,600,811 | 7,384,992 | |||||||||||
Loans held for sale | 16,765 | 18,787 | 18,854 | 19,048 | |||||||||||
Other real estate owned | 1,432 | 1,526 | 4,088 | 3,416 | |||||||||||
Premises and equipment, net | 191,889 | 177,456 | 162,733 | 153,553 | |||||||||||
Goodwill | 306,043 | 306,043 | 306,043 | 306,043 | |||||||||||
Intangible assets, net | 60,390 | 62,356 | 66,025 | 68,283 | |||||||||||
Other assets | 297,023 | 315,245 | 297,326 | 330,894 | |||||||||||
Total assets | $ | 9,993,283 | $ | 9,970,851 | $ | 9,951,064 | $ | 9,866,283 | |||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||
Liabilities: | |||||||||||||||
Non-interest bearing demand deposits | $ | 2,268,801 | $ | 2,229,432 | $ | 2,361,367 | $ | 2,483,174 | |||||||
Interest bearing demand deposits | 1,407,667 | 1,420,942 | 1,480,042 | 1,358,445 | |||||||||||
Savings and money market | 3,768,211 | 3,703,810 | 3,367,012 | 3,314,895 | |||||||||||
Total transaction deposits | 7,444,679 | 7,354,184 | 7,208,421 | 7,156,514 | |||||||||||
Time deposits | 1,052,449 | 1,022,741 | 981,970 | 992,494 | |||||||||||
Total deposits | 8,497,128 | 8,376,925 | 8,190,391 | 8,149,008 | |||||||||||
Securities sold under agreements to repurchase | 19,517 | 19,465 | 19,627 | 20,273 | |||||||||||
Long-term debt | 54,433 | 54,356 | 54,200 | 54,123 | |||||||||||
Federal Home Loan Bank advances | — | 35,000 | 340,000 | 316,770 | |||||||||||
Other liabilities | 130,208 | 237,461 | 134,039 | 162,524 | |||||||||||
Total liabilities | 8,701,286 | 8,723,207 | 8,738,257 | 8,702,698 | |||||||||||
Shareholders' equity: | |||||||||||||||
Common stock | 515 | 515 | 515 | 515 | |||||||||||
Additional paid in capital | 1,164,395 | 1,161,804 | 1,162,269 | 1,160,706 | |||||||||||
Retained earnings | 491,849 | 469,630 | 433,126 | 410,243 | |||||||||||
Treasury stock | (302,277 | ) | (303,880 | ) | (306,702 | ) | (307,026 | ) | |||||||
Accumulated other comprehensive loss, net of tax | (62,485 | ) | (80,425 | ) | (76,401 | ) | (100,853 | ) | |||||||
Total shareholders' equity | 1,291,997 | 1,247,644 | 1,212,807 | 1,163,585 | |||||||||||
Total liabilities and shareholders' equity | $ | 9,993,283 | $ | 9,970,851 | $ | 9,951,064 | $ | 9,866,283 | |||||||
SHARE DATA | |||||||||||||||
Average basic shares outstanding | 38,277,042 | 38,210,869 | 38,013,791 | 37,990,659 | |||||||||||
Average diluted shares outstanding | 38,495,091 | 38,372,777 | 38,162,538 | 38,134,338 | |||||||||||
Ending shares outstanding | 37,988,364 | 37,899,453 | 37,784,851 | 37,739,776 | |||||||||||
Common book value per share | $ | 34.01 | $ | 32.92 | $ | 32.10 | $ | 30.83 | |||||||
Tangible common book value per share(1) (non-GAAP) | 24.91 | 23.74 | 22.77 | 21.43 | |||||||||||
Tangible common book value per share, excluding accumulated other comprehensive loss(1) (non-GAAP) | 26.56 | 25.86 | 24.79 | 24.10 | |||||||||||
CAPITAL RATIOS | |||||||||||||||
Average equity to average assets | 12.80 | % | 12.57 | % | 11.97 | % | 11.93 | % | |||||||
Tangible common equity to tangible assets(1) | 9.81 | % | 9.35 | % | 8.96 | % | 8.50 | % | |||||||
Tier 1 leverage ratio | 10.44 | % | 10.20 | % | 9.74 | % | 9.56 | % | |||||||
Common equity tier 1 risk-based capital ratio | 12.88 | % | 12.41 | % | 11.89 | % | 11.61 | % | |||||||
Tier 1 risk-based capital ratio | 12.88 | % | 12.41 | % | 11.89 | % | 11.61 | % | |||||||
Total risk-based capital ratio | 14.79 | % | 14.32 | % | 13.80 | % | 13.49 | % |
(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
September 30, 2024 | September 30, 2024 | |||||||||||||
vs. June 30, 2024 | vs. September 30, 2023 | |||||||||||||
September 30, 2024 | June 30, 2024 | % Change | September 30, 2023 | % Change | ||||||||||
Originated: | ||||||||||||||
Commercial: | ||||||||||||||
Commercial and industrial | $ | 1,894,830 | $ | 1,906,095 | (0.6 | )% | $ | 1,784,188 | 6.2 | % | ||||
Municipal and non-profit | 1,096,843 | 1,063,706 | 3.1 | % | 1,012,967 | 8.3 | % | |||||||
Owner-occupied commercial real estate | 949,330 | 921,122 | 3.1 | % | 827,679 | 14.7 | % | |||||||
Food and agribusiness | 257,743 | 248,401 | 3.8 | % | 258,609 | (0.3 | )% | |||||||
Total commercial | 4,198,746 | 4,139,324 | 1.4 | % | 3,883,443 | 8.1 | % | |||||||
Commercial real estate non-owner occupied | 1,113,796 | 1,116,424 | (0.2 | )% | 1,026,133 | 8.5 | % | |||||||
Residential real estate | 933,644 | 923,313 | 1.1 | % | 897,804 | 4.0 | % | |||||||
Consumer | 13,600 | 14,385 | (5.5 | )% | 16,700 | (18.6 | )% | |||||||
Total originated | 6,259,786 | 6,193,446 | 1.1 | % | 5,824,080 | 7.5 | % | |||||||
Acquired: | ||||||||||||||
Commercial: | ||||||||||||||
Commercial and industrial | 116,683 | 124,104 | (6.0 | )% | 156,012 | (25.2 | )% | |||||||
Municipal and non-profit | 282 | 288 | (2.1 | )% | 305 | (7.5 | )% | |||||||
Owner-occupied commercial real estate | 221,928 | 232,890 | (4.7 | )% | 247,701 | (10.4 | )% | |||||||
Food and agribusiness | 43,733 | 48,061 | (9.0 | )% | 61,551 | (28.9 | )% | |||||||
Total commercial | 382,626 | 405,343 | (5.6 | )% | 465,569 | (17.8 | )% | |||||||
Commercial real estate non-owner occupied | 720,384 | 752,040 | (4.2 | )% | 787,926 | (8.6 | )% | |||||||
Residential real estate | 349,916 | 369,003 | (5.2 | )% | 398,187 | (12.1 | )% | |||||||
Consumer | 1,783 | 2,321 | (23.2 | )% | 2,676 | (33.4 | )% | |||||||
Total acquired | 1,454,709 | 1,528,707 | (4.8 | )% | 1,654,358 | (12.1 | )% | |||||||
Total loans | $ | 7,714,495 | $ | 7,722,153 | (0.1 | )% | $ | 7,478,438 | 3.2 | % | ||||
Loan Fundings(1)
Third quarter | Second quarter | First quarter | Fourth quarter | Third quarter | |||||||||||
2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||
Commercial: | |||||||||||||||
Commercial and industrial | $ | 93,711 | $ | 241,910 | $ | 53,978 | $ | 135,954 | $ | 89,297 | |||||
Municipal and non-profit | 35,677 | 28,785 | 14,564 | 79,650 | 18,657 | ||||||||||
Owner occupied commercial real estate | 70,517 | 102,615 | 35,128 | 75,631 | 67,322 | ||||||||||
Food and agribusiness | 19,205 | 11,040 | (7,204 | ) | 10,646 | 16,191 | |||||||||
Total commercial | 219,110 | 384,350 | 96,466 | 301,881 | 191,467 | ||||||||||
Commercial real estate non-owner occupied | 91,809 | 83,184 | 73,789 | 107,738 | 88,434 | ||||||||||
Residential real estate | 47,322 | 36,124 | 29,468 | 48,925 | 42,514 | ||||||||||
Consumer | 1,010 | 1,547 | 234 | 1,849 | 1,689 | ||||||||||
Total | $ | 359,251 | $ | 505,205 | $ | 199,957 | $ | 460,393 | $ | 324,104 |
(1 | ) | Loan fundings are defined as closed end funded loans and net fundings under revolving lines of credit. Net fundings (paydowns) 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 | |||||||||||||||||||||||||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | |||||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | ||||||||||||||||||||||||||||
balance | Interest | rate | balance | Interest | rate | balance | Interest | rate | |||||||||||||||||||||||||
Interest earning assets: | |||||||||||||||||||||||||||||||||
Originated loans FTE(1)(2) | $ | 6,251,827 | $ | 108,403 | 6.90 | % | $ | 6,074,199 | $ | 101,794 | 6.74 | % | $ | 5,803,157 | $ | 92,813 | 6.35 | % | |||||||||||||||
Acquired loans | 1,487,002 | 22,660 | 6.06 | % | 1,541,576 | 23,464 | 6.12 | % | 1,671,595 | 26,115 | 6.20 | % | |||||||||||||||||||||
Loans held for sale | 18,078 | 319 | 7.02 | % | 16,862 | 318 | 7.59 | % | 22,154 | 383 | 6.86 | % | |||||||||||||||||||||
Investment securities available-for-sale | 790,268 | 5,132 | 2.60 | % | 802,830 | 5,101 | 2.54 | % | 761,892 | 3,783 | 1.99 | % | |||||||||||||||||||||
Investment securities held-to-maturity | 548,120 | 2,344 | 1.71 | % | 564,818 | 2,419 | 1.71 | % | 611,712 | 2,685 | 1.76 | % | |||||||||||||||||||||
Other securities | 26,213 | 405 | 6.18 | % | 25,093 | 377 | 6.01 | % | 39,115 | 701 | 7.17 | % | |||||||||||||||||||||
Interest earning deposits | 70,946 | 556 | 3.12 | % | 92,388 | 685 | 2.98 | % | 130,239 | 1,205 | 3.67 | % | |||||||||||||||||||||
Total interest earning assets FTE(2) | $ | 9,192,454 | $ | 139,819 | 6.05 | % | $ | 9,117,766 | $ | 134,158 | 5.92 | % | $ | 9,039,864 | $ | 127,685 | 5.60 | % | |||||||||||||||
Cash and due from banks | $ | 86,887 | $ | 100,165 | $ | 104,308 | |||||||||||||||||||||||||||
Other assets | 777,758 | 771,475 | 737,568 | ||||||||||||||||||||||||||||||
Allowance for credit losses | (96,369 | ) | (97,741 | ) | (92,831 | ) | |||||||||||||||||||||||||||
Total assets | $ | 9,960,730 | $ | 9,891,665 | $ | 9,788,909 | |||||||||||||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||||||||||||||
Interest bearing demand, savings and money market deposits | $ | 5,134,650 | $ | 40,146 | 3.11 | % | $ | 5,109,924 | $ | 39,681 | 3.12 | % | $ | 4,535,183 | $ | 27,211 | 2.38 | % | |||||||||||||||
Time deposits | 1,039,563 | 9,220 | 3.53 | % | 1,015,371 | 8,536 | 3.38 | % | 992,755 | 6,212 | 2.48 | % | |||||||||||||||||||||
Securities sold under agreements to repurchase | 17,146 | 5 | 0.12 | % | 17,449 | 5 | 0.12 | % | 19,288 | 6 | 0.12 | % | |||||||||||||||||||||
Long-term debt | 54,383 | 519 | 3.80 | % | 54,307 | 518 | 3.84 | % | 54,074 | 519 | 3.81 | % | |||||||||||||||||||||
Federal Home Loan Bank advances | 32,641 | 460 | 5.61 | % | 9,505 | 133 | 5.63 | % | 316,723 | 4,385 | 5.49 | % | |||||||||||||||||||||
Total interest bearing liabilities | $ | 6,278,383 | $ | 50,350 | 3.19 | % | $ | 6,206,556 | $ | 48,873 | 3.17 | % | $ | 5,918,023 | $ | 38,333 | 2.57 | % | |||||||||||||||
Demand deposits | $ | 2,226,807 | $ | 2,254,454 | $ | 2,553,619 | |||||||||||||||||||||||||||
Other liabilities | 180,667 | 187,499 | 149,068 | ||||||||||||||||||||||||||||||
Total liabilities | 8,685,857 | 8,648,509 | 8,620,710 | ||||||||||||||||||||||||||||||
Shareholders' equity | 1,274,873 | 1,243,156 | 1,168,199 | ||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 9,960,730 | $ | 9,891,665 | $ | 9,788,909 | |||||||||||||||||||||||||||
Net interest income FTE(2) | $ | 89,469 | $ | 85,285 | $ | 89,352 | |||||||||||||||||||||||||||
Interest rate spread FTE(2) | 2.86 | % | 2.75 | % | 3.03 | % | |||||||||||||||||||||||||||
Net interest earning assets | $ | 2,914,071 | $ | 2,911,210 | $ | 3,121,841 | |||||||||||||||||||||||||||
Net interest margin FTE(2) | 3.87 | % | 3.76 | % | 3.92 | % | |||||||||||||||||||||||||||
Average transaction deposits | $ | 7,361,457 | $ | 7,364,378 | $ | 7,088,802 | |||||||||||||||||||||||||||
Average total deposits | 8,401,020 | 8,379,749 | 8,081,557 | ||||||||||||||||||||||||||||||
Ratio of average interest earning assets to average interest bearing liabilities | 146.41 | % | 146.91 | % | 152.75 | % |
(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 nine months ended September 30, 2024 | For the nine months ended September 30, 2023 | ||||||||||||||||||
Average | Average | Average | Average | ||||||||||||||||
balance | Interest | rate | balance | Interest | rate | ||||||||||||||
Interest earning assets: | |||||||||||||||||||
Originated loans FTE(1)(2) | $ | 6,124,757 | $ | 311,112 | 6.79 | % | $ | 5,656,309 | $ | 258,528 | 6.11 | % | |||||||
Acquired loans | 1,546,482 | 70,413 | 6.08 | % | 1,718,523 | 79,526 | 6.19 | % | |||||||||||
Loans held for sale | 15,661 | 862 | 7.35 | % | 23,494 | 1,189 | 6.77 | % | |||||||||||
Investment securities available-for-sale | 781,454 | 14,336 | 2.45 | % | 786,087 | 11,655 | 1.98 | % | |||||||||||
Investment securities held-to-maturity | 563,975 | 7,277 | 1.72 | % | 629,507 | 8,364 | 1.77 | % | |||||||||||
Other securities | 28,771 | 1,398 | 6.48 | % | 46,480 | 2,513 | 7.21 | % | |||||||||||
Interest earning deposits | 84,920 | 2,004 | 3.15 | % | 120,633 | 3,369 | 3.73 | % | |||||||||||
Total interest earning assets FTE(2) | $ | 9,146,020 | $ | 407,402 | 5.95 | % | $ | 8,981,033 | $ | 365,144 | 5.44 | % | |||||||
Cash and due from banks | $ | 96,510 | $ | 110,902 | |||||||||||||||
Other assets | 768,521 | 724,305 | |||||||||||||||||
Allowance for credit losses | (97,327 | ) | (91,110 | ) | |||||||||||||||
Total assets | $ | 9,913,724 | $ | 9,725,130 | |||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||
Interest bearing demand, savings and money market deposits | $ | 5,064,386 | $ | 116,240 | 3.07 | % | $ | 4,197,603 | $ | 55,070 | 1.75 | % | |||||||
Time deposits | 1,015,081 | 25,340 | 3.33 | % | 965,750 | 14,545 | 2.01 | % | |||||||||||
Securities sold under agreements to repurchase | 17,839 | 16 | 0.12 | % | 19,863 | 17 | 0.11 | % | |||||||||||
Long-term debt | 54,307 | 1,555 | 3.82 | % | 53,997 | 1,555 | 3.85 | % | |||||||||||
Federal Home Loan Bank advances | 89,918 | 3,774 | 5.61 | % | 449,060 | 17,075 | 5.08 | % | |||||||||||
Total interest bearing liabilities | $ | 6,241,531 | $ | 146,925 | 3.14 | % | $ | 5,686,273 | $ | 88,262 | 2.08 | % | |||||||
Demand deposits | $ | 2,253,986 | $ | 2,751,537 | |||||||||||||||
Other liabilities | 170,005 | 141,110 | |||||||||||||||||
Total liabilities | 8,665,522 | 8,578,920 | |||||||||||||||||
Shareholders' equity | 1,248,202 | 1,146,210 | |||||||||||||||||
Total liabilities and shareholders' equity | $ | 9,913,724 | $ | 9,725,130 | |||||||||||||||
Net interest income FTE(2) | $ | 260,477 | $ | 276,882 | |||||||||||||||
Interest rate spread FTE(2) | 2.81 | % | 3.36 | % | |||||||||||||||
Net interest earning assets | $ | 2,904,489 | $ | 3,294,760 | |||||||||||||||
Net interest margin FTE(2) | 3.80 | % | 4.12 | % | |||||||||||||||
Average transaction deposits | $ | 7,318,372 | $ | 6,949,140 | |||||||||||||||
Average total deposits | 8,333,453 | 7,914,890 | |||||||||||||||||
Ratio of average interest earning assets to average interest bearing liabilities | 146.53 | % | 157.94 | % |
(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 | |||||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | |||||||||
Beginning allowance for credit losses | $ | 96,457 | $ | 97,607 | $ | 92,581 | |||||
Charge-offs | (3,505 | ) | (4,605 | ) | (540 | ) | |||||
Recoveries | 95 | 499 | 280 | ||||||||
Provision expense for credit losses | 2,000 | 2,956 | 1,125 | ||||||||
Ending allowance for credit losses ("ACL") | $ | 95,047 | $ | 96,457 | $ | 93,446 | |||||
Ratio of annualized net charge-offs to average total loans during the period | 0.18 | % | 0.22 | % | 0.01 | % | |||||
Ratio of ACL to total loans outstanding at period end | 1.23 | % | 1.25 | % | 1.25 | % | |||||
Ratio of ACL to total non-performing loans at period end | 403.68 | % | 370.18 | % | 281.36 | % | |||||
Total loans | $ | 7,714,495 | $ | 7,722,153 | $ | 7,478,438 | |||||
Average total loans during the period | 7,714,765 | 7,582,506 | 7,443,869 | ||||||||
Total non-performing loans | 23,545 | 26,057 | 33,212 | ||||||||
Past Due and Non-accrual Loans
September 30, 2024 | June 30, 2024 | September 30, 2023 | |||||||||
Loans 30-89 days past due and still accruing interest | $ | 31,253 | $ | 27,159 | $ | 8,144 | |||||
Loans 90 days past due and still accruing interest | 9,509 | 3,498 | 154 | ||||||||
Non-accrual loans | 23,545 | 26,057 | 33,212 | ||||||||
Total past due and non-accrual loans | $ | 64,307 | $ | 56,714 | $ | 41,510 | |||||
Total 90 days past due and still accruing interest and non-accrual loans to total loans | 0.43 | % | 0.38 | % | 0.45 | % | |||||
Asset Quality Data
September 30, 2024 | June 30, 2024 | September 30, 2023 | |||||||||
Non-performing loans | $ | 23,545 | $ | 26,057 | $ | 33,212 | |||||
OREO | 1,432 | 1,526 | 3,416 | ||||||||
Total non-performing assets | $ | 24,977 | $ | 27,583 | $ | 36,628 | |||||
Total non-performing loans to total loans | 0.31 | % | 0.34 | % | 0.44 | % | |||||
Total non-performing assets to total loans and OREO | 0.32 | % | 0.36 | % | 0.49 | % | |||||
NATIONAL BANK HOLDINGS CORPORATION
Key Metrics(1)
As of and for the three months ended | As of and for the nine months ended | ||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
Return on average assets | 1.32 | % | 1.06 | % | 1.46 | % | 1.22 | % | 1.50 | % | |||||||||
Return on average tangible assets(2) | 1.43 | % | 1.17 | % | 1.58 | % | 1.33 | % | 1.61 | % | |||||||||
Return on average equity | 10.33 | % | 8.46 | % | 12.26 | % | 9.70 | % | 12.71 | % | |||||||||
Return on average tangible common equity(2) | 14.84 | % | 12.44 | % | 18.38 | % | 14.14 | % | 18.81 | % | |||||||||
Loan to deposit ratio (end of period) | 90.79 | % | 92.18 | % | 91.77 | % | 90.79 | % | 91.77 | % | |||||||||
Non-interest bearing deposits to total deposits (end of period) | 26.70 | % | 26.61 | % | 30.47 | % | 26.70 | % | 30.47 | % | |||||||||
Net interest margin(3) | 3.79 | % | 3.69 | % | 3.85 | % | 3.73 | % | 4.06 | % | |||||||||
Net interest margin FTE(2)(3) | 3.87 | % | 3.76 | % | 3.92 | % | 3.80 | % | 4.12 | % | |||||||||
Interest rate spread FTE(4) | 2.86 | % | 2.75 | % | 3.03 | % | 2.81 | % | 3.36 | % | |||||||||
Yield on earning assets(5) | 5.97 | % | 5.84 | % | 5.53 | % | 5.87 | % | 5.37 | % | |||||||||
Yield on earning assets FTE(2)(5) | 6.05 | % | 5.92 | % | 5.60 | % | 5.95 | % | 5.44 | % | |||||||||
Cost of interest bearing liabilities | 3.19 | % | 3.17 | % | 2.57 | % | 3.14 | % | 2.08 | % | |||||||||
Cost of deposits | 2.34 | % | 2.31 | % | 1.64 | % | 2.27 | % | 1.18 | % | |||||||||
Non-interest income to total revenue FTE(9) | 17.05 | % | 14.13 | % | 17.81 | % | 16.13 | % | 14.74 | % | |||||||||
Non-interest expense to average assets | 2.56 | % | 2.56 | % | 2.46 | % | 2.56 | % | 2.47 | % | |||||||||
Efficiency ratio | 60.51 | % | 64.62 | % | 56.56 | % | 62.24 | % | 56.16 | % | |||||||||
Efficiency ratio excluding other intangible assets amortization FTE(2) | 57.65 | % | 61.52 | % | 53.90 | % | 59.28 | % | 53.74 | % | |||||||||
Pre-provision net revenue | $ | 41,880 | $ | 34,528 | $ | 46,539 | $ | 115,298 | $ | 140,427 | |||||||||
Pre-provision net revenue FTE(2) | 43,696 | 36,239 | 48,114 | 120,518 | 144,859 | ||||||||||||||
Total Loans Asset Quality Data(6)(7)(8) | |||||||||||||||||||
Non-performing loans to total loans | 0.31 | % | 0.34 | % | 0.44 | % | 0.31 | % | 0.44 | % | |||||||||
Non-performing assets to total loans and OREO | 0.32 | % | 0.36 | % | 0.49 | % | 0.32 | % | 0.49 | % | |||||||||
Allowance for credit losses to total loans | 1.23 | % | 1.25 | % | 1.25 | % | 1.23 | % | 1.33 | % | |||||||||
Allowance for credit losses to non-performing loans | 403.68 | % | 370.18 | % | 281.36 | % | 403.68 | % | 281.36 | % | |||||||||
Net charge-offs to average loans | 0.18 | % | 0.22 | % | 0.01 | % | 0.13 | % | 0.02 | % |
(1 | ) | Ratios are annualized. | |
(2 | ) | Ratio represents non-GAAP financial measure. See non-GAAP reconciliations below. | |
(3 | ) | Net interest margin represents net interest income, including accretion income on interest earning assets, as a percentage of average interest earning assets. | |
(4 | ) | Interest rate spread represents the difference between the weighted average yield on interest earning assets, including FTE income, and the weighted average cost of interest bearing liabilities. Ratio represents a non-GAAP financial measure. | |
(5 | ) | Interest earning assets include assets that earn interest/accretion or dividends. Any market value adjustments on investment securities or loans are excluded from interest earning assets. | |
(6 | ) | Non-performing loans consist of non-accruing loans and modified loans on non-accrual. | |
(7 | ) | Non-performing assets include non-performing loans and other real estate owned. | |
(8 | ) | Total loans are net of unearned discounts and fees. | |
(9 | ) | Non-interest income to total revenue represents non-interest income divided by the sum of net interest income FTE and non-interest income. Ratio represents a non-GAAP financial measure. | |
NATIONAL BANK HOLDINGS CORPORATION
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
(Dollars in thousands, except share and per share data)
Tangible Common Book Value Ratios
September 30, 2024 | June 30, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||||
Total shareholders' equity | $ | 1,291,997 | $ | 1,247,644 | $ | 1,212,807 | $ | 1,163,585 | ||||||||
Less: goodwill and other intangible assets, net | (358,754 | ) | (360,732 | ) | (364,716 | ) | (366,724 | ) | ||||||||
Add: deferred tax liability related to goodwill | 13,203 | 12,871 | 12,208 | 11,876 | ||||||||||||
Tangible common equity (non-GAAP) | $ | 946,446 | $ | 899,783 | $ | 860,299 | $ | 808,737 | ||||||||
Total assets | $ | 9,993,283 | $ | 9,970,851 | $ | 9,951,064 | $ | 9,866,283 | ||||||||
Less: goodwill and other intangible assets, net | (358,754 | ) | (360,732 | ) | (364,716 | ) | (366,724 | ) | ||||||||
Add: deferred tax liability related to goodwill | 13,203 | 12,871 | 12,208 | 11,876 | ||||||||||||
Tangible assets (non-GAAP) | $ | 9,647,732 | $ | 9,622,990 | $ | 9,598,556 | $ | 9,511,435 | ||||||||
Tangible common equity to tangible assets calculations: | ||||||||||||||||
Total shareholders' equity to total assets | 12.93 | % | 12.51 | % | 12.19 | % | 11.79 | % | ||||||||
Less: impact of goodwill and other intangible assets, net | (3.12 | )% | (3.16 | )% | (3.23 | )% | (3.29 | )% | ||||||||
Tangible common equity to tangible assets (non-GAAP) | 9.81 | % | 9.35 | % | 8.96 | % | 8.50 | % | ||||||||
Tangible common book value per share calculations: | ||||||||||||||||
Tangible common equity (non-GAAP) | $ | 946,446 | $ | 899,783 | $ | 860,299 | $ | 808,737 | ||||||||
Divided by: ending shares outstanding | 37,988,364 | 37,899,453 | 37,784,851 | 37,739,776 | ||||||||||||
Tangible common book value per share (non-GAAP) | $ | 24.91 | $ | 23.74 | $ | 22.77 | $ | 21.43 | ||||||||
Tangible common book value per share, excluding accumulated other comprehensive loss calculations: | ||||||||||||||||
Tangible common equity (non-GAAP) | $ | 946,446 | $ | 899,783 | $ | 860,299 | $ | 808,737 | ||||||||
Accumulated other comprehensive loss, net of tax | 62,485 | 80,425 | 76,401 | 100,853 | ||||||||||||
Tangible common book value, excluding accumulated other comprehensive loss, net of tax (non-GAAP) | 1,008,931 | 980,208 | 936,700 | 909,590 | ||||||||||||
Divided by: ending shares outstanding | 37,988,364 | 37,899,453 | 37,784,851 | 37,739,776 | ||||||||||||
Tangible common book value per share, excluding accumulated other comprehensive loss, net of tax (non-GAAP) | $ | 26.56 | $ | 25.86 | $ | 24.79 | $ | 24.10 | ||||||||
NATIONAL BANK HOLDINGS CORPORATION
(Dollars in thousands, except share and per share data)
Return on Average Tangible Assets and Return on Average Tangible Equity
As of and for the three months ended | As of and for the nine months ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
Net income | $ | 33,105 | $ | 26,135 | $ | 36,087 | $ | 90,631 | $ | 108,927 | ||||||||||
Add: impact of other intangible assets amortization expense, after tax | 1,517 | 1,516 | 1,541 | 4,575 | 4,128 | |||||||||||||||
Net income excluding the impact of other intangible assets amortization expense, after tax (non-GAAP) | $ | 34,622 | $ | 27,651 | $ | 37,628 | $ | 95,206 | $ | 113,055 | ||||||||||
Average assets | $ | 9,960,730 | $ | 9,891,665 | $ | 9,788,909 | $ | 9,913,724 | $ | 9,725,130 | ||||||||||
Less: average goodwill and other intangible assets, net of deferred tax liability related to goodwill | (346,757 | ) | (349,030 | ) | (356,083 | ) | (348,717 | ) | (342,826 | ) | ||||||||||
Average tangible assets (non-GAAP) | $ | 9,613,973 | $ | 9,542,635 | $ | 9,432,826 | $ | 9,565,007 | $ | 9,382,304 | ||||||||||
Average shareholders' equity | $ | 1,274,873 | $ | 1,243,156 | $ | 1,168,199 | $ | 1,248,202 | $ | 1,146,210 | ||||||||||
Less: average goodwill and other intangible assets, net of deferred tax liability related to goodwill | (346,757 | ) | (349,030 | ) | (356,083 | ) | (348,717 | ) | (342,826 | ) | ||||||||||
Average tangible common equity (non-GAAP) | $ | 928,116 | $ | 894,126 | $ | 812,116 | $ | 899,485 | $ | 803,384 | ||||||||||
Return on average assets | 1.32 | % | 1.06 | % | 1.46 | % | 1.22 | % | 1.50 | % | ||||||||||
Return on average tangible assets (non-GAAP) | 1.43 | % | 1.17 | % | 1.58 | % | 1.33 | % | 1.61 | % | ||||||||||
Return on average equity | 10.33 | % | 8.46 | % | 12.26 | % | 9.70 | % | 12.71 | % | ||||||||||
Return on average tangible common equity (non-GAAP) | 14.84 | % | 12.44 | % | 18.38 | % | 14.14 | % | 18.81 | % | ||||||||||
Fully Taxable Equivalent Yield on Earning Assets and Net Interest Margin
As of and for the three months ended | As of and for the nine months ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
Interest income | $ | 138,003 | $ | 132,447 | $ | 126,110 | $ | 402,182 | $ | 360,712 | ||||||||||
Add: impact of taxable equivalent adjustment | 1,816 | 1,711 | 1,575 | 5,220 | 4,432 | |||||||||||||||
Interest income FTE (non-GAAP) | $ | 139,819 | $ | 134,158 | $ | 127,685 | $ | 407,402 | $ | 365,144 | ||||||||||
Net interest income | $ | 87,653 | $ | 83,574 | $ | 87,777 | $ | 255,257 | $ | 272,450 | ||||||||||
Add: impact of taxable equivalent adjustment | 1,816 | 1,711 | 1,575 | 5,220 | 4,432 | |||||||||||||||
Net interest income FTE (non-GAAP) | $ | 89,469 | $ | 85,285 | $ | 89,352 | $ | 260,477 | $ | 276,882 | ||||||||||
Average earning assets | $ | 9,192,454 | $ | 9,117,766 | $ | 9,039,864 | $ | 9,146,020 | $ | 8,981,033 | ||||||||||
Yield on earning assets | 5.97 | % | 5.84 | % | 5.53 | % | 5.87 | % | 5.37 | % | ||||||||||
Yield on earning assets FTE (non-GAAP) | 6.05 | % | 5.92 | % | 5.60 | % | 5.95 | % | 5.44 | % | ||||||||||
Net interest margin | 3.79 | % | 3.69 | % | 3.85 | % | 3.73 | % | 4.06 | % | ||||||||||
Net interest margin FTE (non-GAAP) | 3.87 | % | 3.76 | % | 3.92 | % | 3.80 | % | 4.12 | % | ||||||||||
Efficiency Ratio and Pre-Provision Net Revenue
As of and for the three months ended | As of and for the nine months ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
Net interest income | $ | 87,653 | $ | 83,574 | $ | 87,777 | $ | 255,257 | $ | 272,450 | ||||||||||
Add: impact of taxable equivalent adjustment | 1,816 | 1,711 | 1,575 | 5,220 | 4,432 | |||||||||||||||
Net interest income FTE (non-GAAP) | $ | 89,469 | $ | 85,285 | $ | 89,352 | $ | 260,477 | $ | 276,882 | ||||||||||
Non-interest income | $ | 18,389 | $ | 14,029 | $ | 19,365 | $ | 50,112 | $ | 47,853 | ||||||||||
Non-interest expense | $ | 64,162 | $ | 63,075 | $ | 60,603 | $ | 190,071 | $ | 179,876 | ||||||||||
Less: other intangible assets amortization | (1,977 | ) | (1,977 | ) | (2,008 | ) | (5,962 | ) | (5,378 | ) | ||||||||||
Non-interest expense excluding other intangible assets amortization (non-GAAP) | $ | 62,185 | $ | 61,098 | $ | 58,595 | $ | 184,109 | $ | 174,498 | ||||||||||
Efficiency ratio | 60.51 | % | 64.62 | % | 56.56 | % | 62.24 | % | 56.16 | % | ||||||||||
Efficiency ratio excluding other intangible assets amortization FTE (non-GAAP) | 57.65 | % | 61.52 | % | 53.90 | % | 59.28 | % | 53.74 | % | ||||||||||
Pre-provision net revenue (non-GAAP) | $ | 41,880 | $ | 34,528 | $ | 46,539 | $ | 115,298 | $ | 140,427 | ||||||||||
Pre-provision net revenue, FTE (non-GAAP) | 43,696 | 36,239 | 48,114 | 120,518 | 144,859 |
FAQ
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