National Bank Holdings Corporation Announces Balance Sheet Repositioning

Rhea-AI Summary

National Bank Holdings (NYSE: NBHC) has announced a strategic balance sheet repositioning through the sale of approximately $130 million of available-for-sale (AFS) investment securities. The sale, representing about 20% of the company's AFS portfolio, resulted in an after-tax loss of approximately $5 million to be recorded in Q4 2024. The company plans to redeploy the proceeds into higher-yielding securities over time, aiming to drive future earnings growth through its solid capital position.

Positive

• Strategic redeployment of assets into higher-yielding securities
• Strong capital position enabling balance sheet optimization
• Proactive management approach to enhance future earnings

Negative

• $5 million after-tax loss in Q4 2024
• 20% reduction in AFS investment securities portfolio

News Market Reaction

-0.95%

1 alert

-0.95% News Effect

On the day this news was published, NBHC declined 0.95%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

DENVER, Dec. 18, 2024 (GLOBE NEWSWIRE) -- National Bank Holdings Corporation (NYSE: NBHC, or the “Company”) announced today that it sold approximately $130 million of available-for-sale (“AFS”) investment securities on the open market. The securities sale is part of the Company’s strategy to proactively maximize the balance sheet with the goal of driving future earnings. The securities sold represented approximately 20% of the Company’s AFS portfolio and resulted in an after-tax loss of approximately $5 million that will be recorded in the fourth quarter of 2024. Proceeds from the sale will be redeployed over time into higher yielding securities.

“Through our solid capital position, we are able to effectively manage our balance sheet while enhancing future earnings growth for our shareholders,” said Chairman and CEO, Tim Laney.

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 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 Utah, Texas, 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.

Contact:
Analysts/Institutional Investors:
Emily Gooden, 720-554-6640
Chief Accounting Officer and Investor Relations Director
ir@nationalbankholdings.com

Nicole Van Denabeele, 720-554-6640
Chief Financial Officer
ir@nationalbankholdings.com

Media:
Jody Soper, 303-784-5925
Chief Marketing Officer
Jody.Soper@nbhbank.com

Source: National Bank Holdings Corporation

FAQ

What is the size of NBHC's securities sale announced in December 2024?

NBHC announced the sale of approximately $130 million of available-for-sale (AFS) investment securities, representing about 20% of their AFS portfolio.

How much loss will NBHC record from the December 2024 securities sale?

NBHC will record an after-tax loss of approximately $5 million in the fourth quarter of 2024 from the securities sale.

What is the purpose of NBHC's balance sheet repositioning strategy?

The strategy aims to maximize the balance sheet and drive future earnings by redeploying proceeds from the securities sale into higher-yielding securities over time.

What percentage of NBHC's AFS portfolio was sold in December 2024?

The securities sale represented approximately 20% of NBHC's available-for-sale (AFS) portfolio.