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National Bank Holdings Corporation Announces Third Quarter 2024 Financial Results and Increase to Quarterly Dividend

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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.

Positive
  • 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
Negative
  • 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 26.7% quarter-over-quarter to $33.1 million, or $0.86 per diluted share. The company's performance was driven by growth in both net interest income and fee income.

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 3.6% to $0.29 per share reflects confidence in its financial position. However, year-over-year comparisons show some pressure on net interest income due to higher funding costs, which investors should monitor closely.

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 12.88%, provides a solid foundation for future growth and a buffer against potential economic headwinds. The increase in the quarterly dividend signals management's confidence in the bank's earnings stability.

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 ($000's) $ 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 $0.86 per diluted share and a return on average tangible common equity of 14.84%. On the strength of our balance sheet, capital position and earnings, we are pleased to announce a 3.6% increase in our quarterly dividend to $0.29 per share. During the quarter, our disciplined approach to loan and deposit pricing drove 11 basis points of net interest margin expansion to 3.87%. Our teams delivered solid quarterly growth in our core banking fees, and we continued to leverage our diverse revenue streams across our franchise resulting in meaningful year-to-date fee income growth.”

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 12.88%, ample liquidity position, and diversified funding sources provide optionality for future growth.”

Third Quarter 2024 Results
(All comparisons refer to the second quarter of 2024, except as noted)

Net income increased $7.0 million or 26.7% to $33.1 million or $0.86 per diluted share, compared to $26.1 million or $0.68 per diluted share. The quarter’s increase was driven by net interest income and fee income growth. Included in the prior quarter was $3.9 million of impairment related to venture capital investments. Fully taxable equivalent pre-provision net revenue increased $7.5 million or 20.6% to $43.7 million. The return on average tangible assets increased 26 basis points to 1.43%, and the return on average tangible common equity increased 240 basis points to 14.84%.

Net Interest Income
Fully taxable equivalent net interest income increased $4.2 million to $89.5 million, driven by a $74.7 million increase in average interest earning assets, a 12 basis point increase in average loan yields and one extra day in the quarter. The fully taxable equivalent net interest margin widened 11 basis points to 3.87%, driven by a 13 basis point increase in earning asset yields which was partially offset by a two basis point increase in the cost of funds.

Loans
Loans totaled $7.7 billion at September 30, 2024, consistent with the prior quarter. We generated quarterly loan fundings totaling $359.3 million, led by commercial loan fundings of $219.1 million. The average interest rate on the third quarter’s loan originations was 8.5%.

Asset Quality and Provision for Credit Losses
The Company recorded $2.0 million of provision expense for credit losses, compared to $2.8 million in the prior quarter. The current quarter’s provision expense was primarily driven by higher reserve requirements from changes in the CECL model’s underlying economic forecast. Annualized net charge-offs decreased four basis points to 0.18% of average total loans and included the resolution of one previously reserved credit during the quarter. Non-performing loans decreased three basis points to 0.31% of total loans at September 30, 2024, and non-performing assets decreased four basis points to 0.32% of total loans and OREO at September 30, 2024. The allowance for credit losses as a percentage of loans totaled 1.23% at September 30, 2024, compared to 1.25% in the prior quarter.

Deposits
Average total deposits increased $21.3 million to $8.4 billion during the third quarter 2024. The loan to deposit ratio totaled 90.8% at September 30, 2024. Average transaction deposits (defined as total deposits less time deposits) totaled $7.4 billion, consistent with the prior quarter. The mix of transaction deposits to total deposits was 88% at September 30, 2024, consistent with June 30, 2024.

Non-Interest Income
Non-interest income increased $4.4 million to $18.4 million driven by increases in our diversified sources of fee revenue. Service charges increased $0.6 million, swap fee income increased $0.3 million and trust fee income increased $0.1 million. These increases were partially offset by a $0.3 million decrease in mortgage banking income. Included in the prior quarter was $3.9 million of impairment related to venture capital investments.

Non-Interest Expense
Non-interest expense totaled $64.2 million during the third quarter, compared to $63.1 million in the prior quarter. Salaries and benefits increased $0.4 million driven by one additional payroll day in the quarter. Professional fees increased $0.4 million and data processing increased $0.3 million driven by our continued investments in technology. These increases were partially offset by a decrease in occupancy and equipment of $0.4 million. The fully taxable equivalent efficiency ratio, excluding other intangible assets amortization, improved 387 basis points to 57.7% for the third quarter.

Income tax expense increased $1.2 million to $6.8 million, compared to $5.6 million in the prior quarter, due to the third quarter’s higher pre-tax income. The effective tax rate was 17.0%, compared to 17.7% for the second quarter.

Capital
Capital ratios continue to be strong and in excess of federal bank regulatory agency “well capitalized” thresholds. The tier 1 leverage ratio totaled 10.44%, and the common equity tier 1 capital ratio totaled 12.88% at September 30, 2024. Shareholders’ equity totaled $1.3 billion at September 30, 2024, increasing $44.4 million. The third quarter’s net income drove $22.2 million of growth in retained earnings, and changes in the interest rate environment led to a $17.9 million improvement in accumulated other comprehensive loss.

Common book value per share increased $1.09 to $34.01 at September 30, 2024. Tangible common book value per share increased $1.17 to $24.91 as this quarter’s earnings and a decrease in accumulated other comprehensive loss outpaced the quarterly dividend.

Dividend Announcement
The quarterly cash dividend will increase 3.6% from $0.28 per share to $0.29 per share. The dividend will be payable on December 13, 2024 to shareholders of record at the close of business on November 29, 2024. This is the eighth consecutive semiannual increase to the quarterly dividend since early 2021.

Year-Over-Year Review
(All comparisons refer to the first nine months of 2023, except as noted)

Net income totaled $90.6 million, or $2.36 per diluted share, compared to net income of $108.9 million, or $2.85 per diluted share, for the first nine months of 2023. The decrease over the same period prior year was largely driven by lower net interest income, due to an increase in cost of funds outpacing the increase in interest income. Partially offsetting this decrease was a 4.7% increase in non-interest income driven by our diversified sources of fee revenue. Fully taxable equivalent pre-provision net revenue totaled $120.5 million, compared to $144.9 million. The return on average tangible assets totaled 1.33%, compared to 1.61%, and the return on average tangible common equity was 14.14%, compared to 18.81%.

Fully taxable equivalent net interest income totaled $260.5 million, compared to $276.9 million. Average earning assets increased $165.0 million, including average loan growth of $296.4 million, which was partially offset by a decrease in average investment securities of $70.2 million. The fully taxable equivalent net interest margin narrowed 32 basis points to 3.80%, as the increase in earning asset yields was more than offset by an increase in the cost of funds. Average interest bearing liabilities increased $555.3 million due to higher deposit balances, and the cost of funds totaled 2.31%, compared to 1.40% in the same period prior year.

Loans outstanding totaled $7.7 billion, increasing $236.1 million or 3.2%. New loan fundings over the trailing twelve months totaled $1.5 billion, led by commercial loan fundings of $1.0 billion.  

The Company recorded $4.8 million of provision expense for credit losses for the first nine months of 2024, compared to provision expense of $3.7 million in the same period prior year. Annualized net charge-offs totaled 0.13% of average total loans during the first nine months of 2024, compared to 0.02% of average total loans during the first nine months of 2023. Non-performing loans decreased 13 basis points to 0.31% of total loans at September 30, 2024, and non-performing assets decreased 17 basis points to 0.32% of total loans and OREO at September 30, 2024. The allowance for credit losses as a percentage of loans totaled 1.23% at September 30, 2024, compared to 1.25% at September 30, 2023.

Average total deposits increased $418.6 million or 5.3% to $8.3 billion, and average transaction deposits increased $369.2 million or 5.3%. The mix of transaction deposits to total deposits was 88%, consistent with September 30, 2023.

Non-interest income totaled $50.1 million, an increase of $2.3 million or 4.7%, driven by increases in our diversified sources of fee revenue. Other non-interest income increased $5.2 million, or 63.6%, and included increases in SBA loan income, trust income, Cambr income and swap fee income. Mortgage banking income decreased $2.7 million as the sustained higher-interest rate environment has lowered mortgage volume.

Non-interest expense totaled $190.1 million, an increase of $10.2 million or 5.7%, largely due to ongoing investments in technology. Salaries and benefits increased $7.6 million, occupancy and equipment increased $2.4 million and data processing increased $2.3 million. Other intangible assets amortization increased $0.6 million due to our Cambr acquisition in April of 2023. These increases were partially offset by a decrease of $2.5 million in professional fees.

Income tax expense totaled $19.9 million, a decrease of $7.9 million from the same period prior year, driven by lower pre-tax income. The effective tax rate was 18.0% for the first nine months of 2024, compared to 20.3%.

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 $10 billion in consolidated assets; increases in claims and litigation related to our fiduciary responsibilities in connection with our trust and wealth management business; the effect of changes in accounting policies and practices as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board (“FASB”) and other accounting standard setters; the share price of the Company’s stock; the Company's ability to realize deferred tax assets or the need for a valuation allowance, or the effects of changes in tax laws on our deferred tax assets; the effects of tax legislation, including the potential of future increases to prevailing tax rules, or challenges to our positions; 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, including, but not limited to, changes in regulation that affect the fees that we charge, the resolution of legal proceedings or regulatory or other government inquiries, and the results of regulatory examinations, reviews or other inquiries, and changes in regulations that apply to us as a Colorado state-chartered bank and a Wyoming state-chartered bank; technological changes, including with respect to the advancement of artificial intelligence; the timely development and acceptance of new products and services, including in the digital technology space our digital solution 2UniFi; changes in our management personnel and 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 our bank subsidiaries; changes in estimates of future credit reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; financial, reputational, or strategic risks associated with our investments in financial technology companies and initiatives; widespread natural and other disasters, pandemics, dislocations, political instability, acts of war or terrorist activities, cyberattacks or international hostilities through impacts on the economy and financial markets generally or on us or our counterparties specifically; a cybersecurity incident, data breach or a failure of a key information technology system; impact of reputational risk; other risks and uncertainties listed from time to time in the Company’s reports and documents filed with the Securities and Exchange Commission; 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.

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 21% for each period presented.
    

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 $16,302, $19,281, ($59,523), $16,954 and ($12,877) for the periods noted in the table above, respectively.
    

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 21%. The tax equivalent adjustments included above are $1,816, $1,711 and $1,575 for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.
    

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 21%. The tax equivalent adjustments included above are $5,220 and $4,432 for the nine months ended September 30, 2024 and September 30, 2023, respectively.
    

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

What was National Bank Holdings 's (NBHC) earnings per share for Q3 2024?

National Bank Holdings (NBHC) reported earnings of $0.86 per diluted share for the third quarter of 2024.

How much did National Bank Holdings (NBHC) increase its quarterly dividend?

National Bank Holdings (NBHC) announced a 3.6% increase in its quarterly dividend to $0.29 per share.

What was National Bank Holdings 's (NBHC) net interest margin in Q3 2024?

National Bank Holdings 's (NBHC) net interest margin expanded by 11 basis points to 3.87% in the third quarter of 2024.

How much were National Bank Holdings 's (NBHC) total loans as of September 30, 2024?

National Bank Holdings 's (NBHC) total loans were $7.7 billion as of September 30, 2024, consistent with the prior quarter.

NATIONAL BANK HOLDINGS CORP.

NYSE:NBHC

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GREENWOOD VILLAGE