STOCK TITAN

National Bank Holdings Corporation Announces First Quarter 2024 Financial Results

Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Neutral)
Tags
National Bank Holdings (NBHC) announced its first quarter 2024 financial results, reporting net income of $31.4 million, or $0.82 per diluted share. The company achieved a return on average tangible common equity of 15.14% and strong fee income growth of 40.8% annualized. Despite a decrease in net interest income and non-interest income, the company maintained a solid balance sheet, strong capital position, and diverse funding sources. NBHC showcased its commitment to delivering top-notch banking solutions while focusing on stability and meaningful returns for stakeholders in 2024.
National Bank Holdings (NBHC) ha annunciato i risultati finanziari del primo trimestre 2024, riportando un utile netto di 31,4 milioni di dollari, ovvero 0,82 dollari per azione diluita. La società ha raggiunto un rendimento del 15,14% sul capitale tangibile comune medio e un forte incremento del reddito da commissioni, con una crescita annualizzata del 40,8%. Nonostante una diminuzione del reddito da interessi netti e del reddito non da interessi, la compagnia ha mantenuto un bilancio solido, una forte posizione di capitale e fonti di finanziamento diversificate. NBHC ha dimostrato il suo impegno nel fornire soluzioni bancarie di primo livello, concentrandosi sulla stabilità e su rendimenti significativi per gli stakeholder nel 2024.
National Bank Holdings (NBHC) anunció los resultados financieros del primer trimestre de 2024, reportando una ganancia neta de 31,4 millones de dólares, o 0,82 dólares por acción diluida. La empresa logró un retorno sobre el capital tangible común promedio de 15,14% y un fuerte crecimiento en los ingresos por comisiones de 40,8% anualizado. A pesar de una disminución en los ingresos netos por intereses y los ingresos no provenientes de intereses, la compañía mantuvo un balance sólido, una posición de capital robusta y diversas fuentes de financiación. NBHC demostró su compromiso con ofrecer soluciones bancarias de primera calidad, enfocándose en la estabilidad y rendimientos significativos para los stakeholders en 2024.
내셔널 뱅크 홀딩스(NBHC)는 2024년 첫 분기 재무 결과를 발표하였으며, 순이익은 3,140만 달러, 희석 주당 0.82 달러를 보고하였다. 회사는 평균 유형 상용 자본 수익률 15.14%를 달성하고 강력한 수수료 수익 증가율 40.8%를 연간화하였다. 순이자 수익과 비이자 수익이 감소에도 불구하고, 회사는 견고한 대차대조표, 강력한 자본 위치와 다양한 자금 조달원을 유지하였다. NBHC는 2024년에 안정성과 의미 있는 수익을 중심으로 최고의 은행 솔루션을 제공하는 데에 집중함으로써 이해관계자들에 대한 의지를 보여주었다.
National Bank Holdings (NBHC) a annoncé ses résultats financiers pour le premier trimestre de 2024, rapportant un bénéfice net de 31,4 millions de dollars, soit 0,82 dollar par action diluée. L'entreprise a réalisé un retour sur capitaux propres tangibles moyens de 15,14% et une forte croissance des revenus de commissions de 40,8% annualisée. Malgré une baisse des revenus nets d'intérêts et des revenus non liés aux intérêts, la société a maintenu un bilan solide, une position en capital forte et des sources de financement diversifiées. NBHC a démontré son engagement à fournir des solutions bancaires de premier ordre tout en se concentrant sur la stabilité et des retours significatifs pour les parties prenantes en 2024.
National Bank Holdings (NBHC) hat die Finanzergebnisse für das erste Quartal 2024 bekannt gegeben und einen Nettogewinn von 31,4 Millionen Dollar oder 0,82 Dollar pro verwässerter Aktie gemeldet. Das Unternehmen erreichte eine Rendite auf das durchschnittliche greifbare Stammkapital von 15,14% und ein starkes Wachstum des Gebühreneinkommens von 40,8% auf Jahresbasis. Trotz eines Rückgangs im Nettozinseinkommen und im nicht-zinsabhängigen Einkommen konnte das Unternehmen eine solide Bilanz, eine starke Kapitalposition und vielfältige Finanzierungsquellen beibehalten. NBHC hat sein Engagement für erstklassige Banklösungen unter Beweis gestellt, indem es sich auf Stabilität und bedeutungsvolle Erträge für die Stakeholder im Jahr 2024 konzentriert hat.
Positive
  • National Bank Holdings (NBHC) reported net income of $31.4 million, or $0.82 per diluted share, for the first quarter of 2024.
  • The company achieved a return on average tangible common equity of 15.14% and strong fee income growth of 40.8% annualized over the prior quarter.
  • Despite a decrease in net interest income and non-interest income, NBHC maintained a strong balance sheet, solid capital position, and diversified funding sources.
  • NBHC remains committed to delivering best-in-class banking solutions, focusing on stability and providing meaningful returns for stakeholders in 2024.
Negative
  • Net interest income and non-interest income decreased compared to the previous quarter.
  • The net interest margin narrowed by 17 basis points primarily due to accelerated loan fee income in the fourth quarter of 2023.
  • Non-interest expense increased during the first quarter, driven by higher salaries and benefits, data processing, and income tax expense.
  • The efficiency ratio and effective tax rate also increased compared to the previous quarter.
  • The company recorded no provision expense for credit losses in 2024, but the non-performing loans ratio and non-performing assets slightly increased.
  • The decrease in net income compared to the first quarter of 2023 was primarily due to lower net interest income.

DENVER, April 24, 2024 (GLOBE NEWSWIRE) -- National Bank Holdings Corporation (NYSE: NBHC) reported:

          
  For the quarter(1)
  1Q24 4Q23 1Q23
Net income ($000's) $ 31,391  $33,121  $40,283 
Earnings per share - diluted $ 0.82  $0.87  $1.06 
Return on average assets  1.28%  1.33%  1.70%
Return on average tangible assets(2)  1.39%  1.44%  1.80%
Return on average equity  10.30%  11.10%  14.60%
Return on average tangible common equity(2)  15.14%  16.56%  20.86%

                                                      

(1) Ratios are annualized.
(2) See non-GAAP reconciliations below.
    

In announcing these results, Chief Executive Officer Tim Laney shared, “We are pleased to deliver quarterly earnings of $0.82 per diluted share and a solid return on average tangible common equity of 15.14%. Our diverse revenue streams delivered strong fee income growth of 40.8% annualized over the prior quarter. Our prudent approach to extending credit coupled with our granular and diverse loan portfolio delivered zero basis points of annualized net charge-offs. We grew our core deposits 6.8% over the first quarter 2023, while preserving a low deposit beta of 37.5% this rate cycle. We maintain a strong balance sheet, solid capital position, and diversified funding sources.”

Mr. Laney added, “We remain focused on delivering best-in-class banking solutions for our clients, while protecting our Company through solid banking practices. We are committed to operating as a source of strength and stability for our clients and communities and look forward to providing meaningful returns for our stakeholders in 2024.”

First Quarter 2024 Results
(All comparisons refer to the fourth quarter of 2023, except as noted)

Net income totaled $31.4 million or $0.82 per diluted share, compared to $33.1 million or $0.87 per diluted share. Fully taxable equivalent pre-provision net revenue totaled $40.6 million, compared to $45.1 million. The return on average tangible assets totaled 1.39%, compared to 1.44%, and the return on average tangible common equity totaled 15.14%, compared to 16.56%.

Net Interest Income
Fully taxable equivalent net interest income totaled $85.7 million, compared to $91.2 million. Net interest income for the fourth quarter of 2023 included $2.9 million of accelerated loan fee income and one additional day. The fully taxable equivalent net interest margin was 3.78%, narrowing 17 basis points primarily driven by the fourth quarter’s accelerated loan fee income noted above.

Loans
Loans totaled $7.6 billion, compared to $7.7 billion at December 31, 2023. We generated quarterly loan fundings totaling $200.0 million, led by commercial loan fundings of $96.5 million. The average interest rate on the first quarter’s loan originations increased sixteen basis points to 8.8%.

Asset Quality and Provision for Credit Losses
The Company recorded no provision expense for credit losses, compared to $4.6 million in the prior quarter. Annualized net charge-offs were 0.00% of average total loans, compared to 0.02% in the prior quarter. Non-performing loans totaled 0.47% of total loans at March 31, 2024, compared to 0.37%, and non-performing assets totaled 0.53% of total loans and OREO at March 31, 2024, compared to 0.42%. The allowance for credit losses as a percentage of loans increased two basis points to 1.29% at March 31, 2024.

Deposits
Average total deposits increased $90.3 million, or 4.5% annualized, to $8.2 billion during the first quarter 2024. The loan to deposit ratio decreased 514 basis points to 88.9% at March 31, 2024. Average transaction deposits (defined as total deposits less time deposits) increased $86.8 million to $7.2 billion.

We improved our balance sheet funding mix during the first quarter and utilized funding provided by the quarter’s deposit growth to pay down $340.0 million of Federal Home Loan Bank advances. The mix of transaction deposits to total deposits was 88.3% and 88.0% at March 31, 2024 and December 31, 2023, respectively.

Non-Interest Income
Non-interest income increased $1.6 million, or 40.8% annualized, to $17.7 million during the first quarter driven by our diversified sources of fee revenue. Other non-interest income increased $1.8 million and included increases in SBA loan income, trust income, and a $0.6 million gain from the sale of a banking center building. Mortgage banking income increased $0.6 million, and service charges and bank card fees decreased $0.8 million due to seasonality.

Non-Interest Expense
Non-interest expense increased $0.7 million to $62.8 million during the first quarter. Salaries and benefits increased $2.1 million largely due to higher payroll taxes, and data processing increased $1.2 million. These increases were partially offset by a decrease in professional fees of $0.9 million, and a decrease in other non-interest expense of $1.4 million primarily driven by $0.7 million of one-time asset write-downs in the prior quarter. The efficiency ratio totaled 61.8% for the first quarter, compared to 58.8% for the fourth quarter. The fully taxable equivalent efficiency ratio totaled 58.8% for the first quarter, compared to 56.0%, excluding other intangible assets amortization.

Income tax expense totaled $7.5 million, compared to $5.8 million in the prior quarter. The effective tax rate was 19.3%, compared to 14.9% for the fourth quarter. The fourth quarter of 2023 benefitted from $2.0 million of research and development tax credits.

Capital
Capital ratios continue to be strong and in excess of federal bank regulatory agency “well capitalized” thresholds. The tier 1 leverage ratio totaled 9.99%, and the common equity tier 1 capital ratio totaled 12.35% at March 31, 2024. Shareholders’ equity totaled $1.2 billion at March 31, 2024, increasing $19.0 million, largely due to $21.1 million of higher retained earnings, partially offset by a $3.8 million increase in accumulated other comprehensive loss.

Common book value per share increased $0.48 to $32.58 at March 31, 2024. Tangible common book value per share increased $0.55 to $23.32 as this quarter’s earnings outpaced the quarterly dividend and a $0.10 increase in accumulated other comprehensive loss.

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

Net income totaled $31.4 million, or $0.82 per diluted share, compared to net income of $40.3 million, or $1.06 per diluted share, for the first quarter 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 an increase in our non-interest income discussed below. Fully taxable equivalent pre-provision net revenue totaled $40.6 million, compared to $52.7 million. The return on average tangible assets totaled 1.39%, compared to 1.80%, and the return on average tangible common equity was 15.14%, compared to 20.86%.

Fully taxable equivalent net interest income totaled $85.7 million, compared to $96.3 million. Average earning assets increased $224.6 million, or 2.5%, including average loan growth of $372.4 million. The fully taxable equivalent net interest margin narrowed 61 basis points to 3.78%, as the increase in earning asset yields was offset by an increase in the cost of funds. Average interest bearing liabilities increased $878.7 million due to higher deposit balances, and the cost of funds totaled 2.25%, compared to 0.90% in the same period prior year.

Loans outstanding totaled $7.6 billion, increasing $223.8 million or 3.0%, from organic loan growth. New loan fundings over the trailing twelve months totaled $1.3 billion, led by commercial loan fundings of $0.8 billion.  

The Company recorded no provision expense for credit losses during 2024, compared to provision expense of $0.9 million in the first quarter of 2023. Annualized net charge-offs decreased one basis point to 0.00% of average total loans during the first quarter 2024. The non-performing loans ratio was 0.47% at March 31, 2024, compared to 0.13%, and non-performing assets to total loans and OREO was 0.53% at March 31, 2024, compared to 0.18%. The allowance for credit losses as a percentage of loans increased six basis points to 1.29% at March 31, 2024.

Average total deposits increased $525.5 million or 6.8% to $8.2 billion, primarily due to higher deposit balances driven by the strategic growth from our recent acquisitions. Average transaction deposits increased $458.0 million or 6.8%. The mix of transaction deposits to total deposits was 88.3%, compared to 87.1% at March 31, 2023.

Non-interest income totaled $17.7 million, an increase of $3.0 million or 20.7%, driven by our diversified sources of fee revenue. Other non-interest income increased $3.4 million and included increases in SBA loan income, trust income, Cambr income, fair value adjustments on company-owned life insurance, swap fee income and a $0.6 million gain from the sale of a banking center building. Mortgage banking income decreased $0.6 million.

Non-interest expense totaled $62.8 million, an increase of $4.5 million or 7.8%. Salaries and benefits increased $3.5 million primarily due to payroll tax credits realized in the first quarter 2023. Occupancy and equipment increased $0.9 million and other intangible assets amortization increased $0.6 million due to intangible assets acquired through our Cambr acquisition in April of 2023. These increases were partially offset by a decrease of $0.9 million in professional fees.

Income tax expense totaled $7.5 million, a decrease of $2.6 million from the first quarter last year, driven by lower pre-tax income. The effective tax rate was 19.3% and 20.0% for the first quarters 2024 and 2023, respectively.

Conference Call
Management will host a conference call to review the results at 11:00 a.m. Eastern Time on Thursday, April 25, 2024. Interested parties may listen to this call by dialing (866) 400-0049 using the participant passcode of 4874281 and asking for the NBHC Q1 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 time-frames, 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, Investor Relations Director, (720) 554-6640, ir@nationalbankholdings.com
Aldis Birkans, Chief Financial Officer, (720) 554-6640, ir@nationalbankholdings.com

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



NATIONAL BANK HOLDINGS CORPORATION
FINANCIAL SUMMARY
Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except share and per share data)

         
 For the three months ended
 March 31,     December 31,     March 31, 
 2024 2023 2023
Total interest and dividend income$ 131,732 $134,703 $113,533
Total interest expense  47,702  45,202  18,644
Net interest income  84,030  89,501  94,889
Taxable equivalent adjustment  1,692  1,667  1,414
Net interest income FTE(1)  85,722  91,168  96,303
Provision expense for credit losses   4,570  900
Net interest income after provision for credit losses FTE(1)  85,722  86,598  95,403
Non-interest income:        
Service charges  4,391  4,831  4,101
Bank card fees  4,578  4,915  4,637
Mortgage banking income  2,655  2,020  3,216
Other non-interest income  6,070  4,298  2,711
Total non-interest income  17,694  16,064  14,665
Non-interest expense:        
Salaries and benefits  36,520  34,470  32,989
Occupancy and equipment  9,941  10,186  9,073
Professional fees  1,646  2,513  2,590
Data processing  4,066  2,853  3,752
Other non-interest expense  8,653  10,065  8,525
Other intangible assets amortization  2,008  2,008  1,363
Total non-interest expense  62,834  62,095  58,292
         
Income before income taxes FTE(1)  40,582  40,567  51,776
Taxable equivalent adjustment  1,692  1,667  1,414
Income before income taxes  38,890  38,900  50,362
Income tax expense  7,499  5,779  10,079
Net income$ 31,391 $33,121 $40,283
Earnings per share - basic$ 0.82 $0.87 $1.06
Earnings per share - diluted  0.82  0.87  1.06

                                                      

(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)

 March 31, 2024 December 31, 2023 March 31, 2023
ASSETS        
Cash and cash equivalents$ 292,931  $190,826  $369,705 
Investment securities available-for-sale  685,666   628,829   695,485 
Investment securities held-to-maturity  570,850   585,052   637,921 
Non-marketable securities  73,439   90,477   120,733 
Loans  7,569,052   7,698,758   7,345,298 
Allowance for credit losses  (97,607)  (97,947)  (90,343)
Loans, net  7,471,445   7,600,811   7,254,955 
Loans held for sale  14,065   18,854   24,594 
Other real estate owned  4,064   4,088   3,458 
Premises and equipment, net  168,956   162,733   140,417 
Goodwill  306,043   306,043   279,132 
Intangible assets, net  64,212   66,025   58,619 
Other assets  315,805   297,326   332,204 
Total assets$ 9,967,476  $9,951,064  $9,917,223 
LIABILITIES AND SHAREHOLDERS' EQUITY        
Liabilities:        
Non-interest bearing demand deposits$ 2,292,917  $2,361,367  $2,920,891 
Interest bearing demand deposits  1,427,856   1,480,042   1,098,172 
Savings and money market  3,801,013   3,367,012   2,584,128 
Total transaction deposits  7,521,786   7,208,421   6,603,191 
Time deposits  995,976   981,970   978,489 
Total deposits  8,517,762   8,190,391   7,581,680 
Securities sold under agreements to repurchase  19,577   19,627   21,492 
Long-term debt  54,278   54,200   53,968 
Federal Home Loan Bank advances    340,000   1,000,000 
Other liabilities  144,029   134,039   126,356 
Total liabilities  8,735,646   8,738,257   8,783,496 
Shareholders' equity:        
Common stock  515   515   515 
Additional paid in capital  1,163,773   1,162,269   1,160,436 
Retained earnings  454,211   433,126   361,440 
Treasury stock  (306,460)  (306,702)  (310,037)
Accumulated other comprehensive loss, net of tax  (80,209)  (76,401)  (78,627)
Total shareholders' equity  1,231,830   1,212,807   1,133,727 
Total liabilities and shareholders' equity$ 9,967,476  $9,951,064  $9,917,223 
SHARE DATA        
Average basic shares outstanding  38,031,358   38,013,791   37,785,488 
Average diluted shares outstanding  38,188,480   38,162,538   38,074,973 
Ending shares outstanding  37,806,148   37,784,851   37,641,381 
Common book value per share$ 32.58  $32.10  $30.12 
Tangible common book value per share(1) (non-GAAP)  23.32   22.77   21.76 
Tangible common book value per share, excluding accumulated other comprehensive loss(1) (non-GAAP)  25.44   24.79   23.85 
CAPITAL RATIOS        
Average equity to average assets 12.40%  11.97%  11.63%
Tangible common equity to tangible assets(1) 9.17%  8.96%  8.53%
Tier 1 leverage ratio 9.99%  9.74%  9.46%
Common equity tier 1 risk-based capital ratio 12.35%  11.89%  11.32%
Tier 1 risk-based capital ratio 12.35%  11.89%  11.32%
Total risk-based capital ratio 14.30%  13.80%  13.17%

                                                      

(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

     March 31, 2024   March 31, 2024
     vs. December 31, 2023   vs. March 31, 2023
 March 31, 2024 December 31, 2023 % Change March 31, 2023 % Change
Originated:            
Commercial:            
Commercial and industrial$ 1,777,328 $1,825,425 (2.6)% $1,818,415 (2.3)%
Municipal and non-profit  1,062,287  1,083,457 (2.0)%  979,801 8.4%
Owner-occupied commercial real estate  875,303  879,686 (0.5)%  674,231 29.8%
Food and agribusiness  241,654  265,902 (9.1)%  270,197 (10.6)%
Total commercial  3,956,572  4,054,470 (2.4)%  3,742,644 5.7%
Commercial real estate non-owner occupied  1,092,780  1,071,529 2.0%  979,150 11.6%
Residential real estate  923,103  919,139 0.4%  864,544 6.8%
Consumer  14,936  16,686 (10.5)%  16,766 (10.9)%
Total originated  5,987,391  6,061,824 (1.2)%  5,603,104 6.9%
             
Acquired:            
Commercial:            
Commercial and industrial  132,532  141,484 (6.3)%  172,368 (23.1)%
Municipal and non-profit  294  299 (1.7)%  316 (7.0)%
Owner-occupied commercial real estate  234,486  244,087 (3.9)%  248,883 (5.8)%
Food and agribusiness  57,896  58,695 (1.4)%  64,739 (10.6)%
Total commercial  425,208  444,565 (4.4)%  486,306 (12.6)%
Commercial real estate non-owner occupied  767,419  785,221 (2.3)%  845,374 (9.2)%
Residential real estate  387,101  404,648 (4.3)%  407,254 (4.9)%
Consumer  1,933  2,500 (22.7)%  3,260 (40.7)%
Total acquired  1,581,661  1,636,934 (3.4)%  1,742,194 (9.2)%
Total loans$ 7,569,052 $7,698,758 (1.7)% $7,345,298 3.0%
               

Loan Fundings(1)

 First quarter Fourth quarter Third quarter Second quarter First quarter
 2024 2023 2023 2023 2023
Commercial:              
Commercial and industrial$ 53,978  $135,954 $89,297 $111,717 $107,013 
Municipal and non-profit  14,564   79,650  18,657  39,331  22,526 
Owner occupied commercial real estate  35,128   75,631  67,322  62,649  33,912 
Food and agribusiness  (7,204)  10,646  16,191  6,017  (6,564)
Total commercial  96,466   301,881  191,467  219,714  156,887 
Commercial real estate non-owner occupied  73,789   107,738  88,434  99,984  185,875 
Residential real estate  29,468   48,925  42,514  40,814  49,406 
Consumer  234   1,849  1,689  1,777  1,717 
Total$ 199,957  $460,393 $324,104 $362,289 $393,885 

                                                      

(1)    Loan fundings are defined as closed end funded loans and net fundings under revolving lines of credit. Net (paydowns) fundings under revolving lines of credit were ($59,523), $16,954, ($12,877), $13,766 and ($7,096) 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
  March 31, 2024 December 31, 2023 March 31, 2023
  Average          Average    Average          Average    Average          Average
  balance Interest rate balance Interest rate balance Interest rate
Interest earning assets:                        
Originated loans FTE(1)(2) $ 6,046,849  $ 100,914 6.71% $5,985,610  $102,504 6.79% $5,514,704  $79,167 5.82%
Acquired loans   1,611,521    24,289 6.06%  1,646,696   25,407 6.12%  1,771,224   27,023 6.19%
Loans held for sale   12,017    225 7.53%  16,599   321 7.67%  21,753   346 6.45%
Investment securities available-for-sale   751,168    4,103 2.18%  739,471   3,715 2.01%  810,257   3,989 1.97%
Investment securities held-to-maturity   579,160    2,514 1.74%  594,149   2,596 1.75%  646,646   2,871 1.78%
Other securities   35,036    616 7.03%  40,355   741 7.34%  51,366   898 6.99%
Interest earning deposits   91,579    763 3.35%  125,097   1,086 3.44%  86,790   653 3.05%
Total interest earning assets FTE(2) $ 9,127,330  $ 133,424 5.88% $9,147,977  $136,370 5.91% $8,902,740  $114,947 5.24%
Cash and due from banks $ 102,583       $105,323       $118,607      
Other assets   756,230        730,220        687,940      
Allowance for credit losses   (97,882)       (94,466)       (89,831)     
Total assets $ 9,888,261       $9,889,054       $9,619,456      
Interest bearing liabilities:                        
Interest bearing demand, savings and money market deposits $ 4,947,811  $ 36,413 2.96% $4,751,563  $32,887 2.75% $3,766,203  $7,759 0.84%
Time deposits   990,041    7,584 3.08%  986,513   6,876 2.77%  922,521   3,290 1.45%
Securities sold under agreements to repurchase   18,929    6 0.13%  17,812   5 0.11%  20,045   6 0.12%
Long-term debt   54,229    518 3.84%  54,151   518 3.80%  53,918   518 3.90%
Federal Home Loan Bank advances   228,236    3,181 5.61%  348,775   4,916 5.59%  597,833   7,071 4.80%
Total interest bearing liabilities $ 6,239,246  $ 47,702 3.07% $6,158,814  $45,202 2.91% $5,360,520  $18,644 1.41%
Demand deposits $ 2,280,997       $2,390,457       $3,004,643      
Other liabilities   141,735        155,619        135,175      
Total liabilities   8,661,978        8,704,890        8,500,338      
Shareholders' equity   1,226,283        1,184,164        1,119,118      
Total liabilities and shareholders' equity $ 9,888,261       $9,889,054       $9,619,456      
Net interest income FTE(2)    $ 85,722      $91,168      $96,303  
Interest rate spread FTE(2)       2.81%       3.00%       3.83%
Net interest earning assets $ 2,888,084       $2,989,163       $3,542,220      
Net interest margin FTE(2)       3.78%       3.95%       4.39%
Average transaction deposits $ 7,228,808       $7,142,020       $6,770,846      
Average total deposits   8,218,849        8,128,533        7,693,367      
Ratio of average interest earning assets to average interest bearing liabilities  146.29%       148.53%       166.08%     

                                                      

(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 $1,692, $1,667 and $1,414 for the three months ended March 31, 2024, December 31, 2023 and March 31, 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
 March 31, 2024 December 31, 2023 March 31, 2023
Beginning allowance for credit losses$ 97,947  $93,446  $89,553 
Charge-offs  (278)  (357)  (325)
Recoveries  188   58   65 
Provision (release) expense for credit losses  (250)  4,800   1,050 
Ending allowance for credit losses ("ACL")$ 97,607  $97,947  $90,343 
Ratio of annualized net charge-offs to average total loans during the period 0.00%  0.02%  0.01%
Ratio of ACL to total loans outstanding at period end 1.29%  1.27%  1.23%
Ratio of ACL to total non-performing loans at period end 272.52%  346.99%  946.40%
Total loans$ 7,569,052  $7,698,758  $7,345,298 
Average total loans during the period  7,632,635   7,594,725   7,257,639 
Total non-performing loans  35,817   28,228   9,546 
            

Past Due and Non-accrual Loans

         
 March 31, 2024 December 31, 2023 March 31, 2023
Loans 30-89 days past due and still accruing interest$ 3,495  $12,232  $2,308 
Loans 90 days past due and still accruing interest  1   591   185 
Non-accrual loans  35,817   28,228   9,546 
Total past due and non-accrual loans$ 39,313  $41,051  $12,039 
Total 90 days past due and still accruing interest and non-accrual loans to total loans 0.47%  0.37%  0.13%
            

Asset Quality Data

 March 31, 2024 December 31, 2023 March 31, 2023
Non-performing loans$ 35,817  $28,228  $9,546 
OREO  4,064   4,088   3,458 
Total non-performing assets$ 39,881  $32,316  $13,004 
Total non-performing loans to total loans 0.47%  0.37%  0.13%
Total non-performing assets to total loans and OREO 0.53%  0.42%  0.18%
            

NATIONAL BANK HOLDINGS CORPORATION
Key Metrics(1)

         
 As of and for the three months ended
 March 31,  December 31,  March 31, 
 2024 2023 2023
Return on average assets 1.28%  1.33%  1.70%
Return on average tangible assets(2) 1.39%  1.44%  1.80%
Return on average equity 10.30%  11.10%  14.60%
Return on average tangible common equity(2) 15.14%  16.56%  20.86%
Loan to deposit ratio (end of period) 88.86%  94.00%  96.88%
Non-interest bearing deposits to total deposits (end of period) 26.92%  28.83%  38.53%
Net interest margin(3) 3.70%  3.88%  4.32%
Net interest margin FTE(2)(3) 3.78%  3.95%  4.39%
Interest rate spread FTE(2)(4) 2.81%  3.00%  3.83%
Yield on earning assets(5) 5.80%  5.84%  5.17%
Yield on earning assets FTE(2)(5) 5.88%  5.91%  5.24%
Cost of interest bearing liabilities 3.07%  2.91%  1.41%
Cost of deposits 2.15%  1.94%  0.58%
Non-interest income to total revenue FTE(2) 17.11%  14.98%  13.22%
Non-interest expense to average assets 2.56%  2.49%  2.46%
Efficiency ratio 61.77%  58.82%  53.21%
Efficiency ratio excluding other intangible assets amortization FTE(2) 58.82%  56.03%  51.30%
Pre-provision net revenue$ 38,890  $43,470  $51,262 
Pre-provision net revenue FTE(2)  40,582   45,137   52,676 
         
Total Loans Asset Quality Data(6)(7)(8)        
Non-performing loans to total loans 0.47%  0.37%  0.13%
Non-performing assets to total loans and OREO 0.53%  0.42%  0.18%
Allowance for credit losses to total loans 1.29%  1.27%  1.23%
Allowance for credit losses to non-performing loans 272.52%  346.99%  946.40%
Net charge-offs to average loans 0.00%  0.02%  0.01%

                                                      

(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 and the weighted average cost of interest bearing liabilities.
(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.
    

NATIONAL BANK HOLDINGS CORPORATION
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
(Dollars in thousands, except share and per share data)

Tangible Common Book Value Ratios

  March 31, 2024 December 31, 2023 March 31, 2023
Total shareholders' equity $ 1,231,830  $1,212,807  $1,133,727 
Less: goodwill and other intangible assets, net   (362,709)  (364,716)  (325,828)
Add: deferred tax liability related to goodwill   12,539   12,208   11,212 
Tangible common equity (non-GAAP) $ 881,660  $860,299  $819,111 
          
Total assets $ 9,967,476  $9,951,064  $9,917,223 
Less: goodwill and other intangible assets, net   (362,709)  (364,716)  (325,828)
Add: deferred tax liability related to goodwill   12,539   12,208   11,212 
Tangible assets (non-GAAP) $ 9,617,306  $9,598,556  $9,602,607 
          
Tangible common equity to tangible assets calculations:         
Total shareholders' equity to total assets  12.36%  12.19%  11.43%
Less: impact of goodwill and other intangible assets, net  (3.19)%  (3.23)%  (2.90)%
Tangible common equity to tangible assets (non-GAAP)  9.17%  8.96%  8.53%
          
Tangible common book value per share calculations:         
Tangible common equity (non-GAAP) $ 881,660  $860,299  $819,111 
Divided by: ending shares outstanding   37,806,148   37,784,851   37,641,381 
Tangible common book value per share (non-GAAP) $ 23.32  $22.77  $21.76 
          
Tangible common book value per share, excluding accumulated other comprehensive loss calculations:         
Tangible common equity (non-GAAP) $ 881,660  $860,299  $819,111 
Accumulated other comprehensive loss, net of tax   80,209   76,401   78,627 
Tangible common book value, excluding accumulated other comprehensive loss, net of tax (non-GAAP)   961,869   936,700   897,738 
Divided by: ending shares outstanding   37,806,148   37,784,851   37,641,381 
Tangible common book value per share, excluding accumulated other comprehensive loss, net of tax (non-GAAP) $ 25.44  $24.79  $23.85 
             

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
  March 31,     December 31,     March 31, 
  2024    2023    2023
Net income $ 31,391  $33,121  $40,283 
Add: impact of other intangible assets amortization expense, after tax   1,534   1,541   1,049 
Net income excluding the impact of other intangible assets amortization expense, after tax (non-GAAP) $ 32,925  $34,662  $41,332 
          
Average assets $ 9,888,261  $9,889,054  $9,619,456 
Less: average goodwill and other intangible assets, net of deferred tax liability related to goodwill   (351,383)  (353,712)  (315,493)
Average tangible assets (non-GAAP) $ 9,536,878  $9,535,342  $9,303,963 
          
Average shareholders' equity $ 1,226,283  $1,184,164  $1,119,118 
Less: average goodwill and other intangible assets, net of deferred tax liability related to goodwill   (351,383)  (353,712)  (315,493)
Average tangible common equity (non-GAAP) $ 874,900  $830,452  $803,625 
          
Return on average assets  1.28%  1.33%  1.70%
Return on average tangible assets (non-GAAP)  1.39%  1.44%  1.80%
Return on average equity  10.30%  11.10%  14.60%
Return on average tangible common equity (non-GAAP)  15.14%  16.56%  20.86%
             

Fully Taxable Equivalent Yield on Earning Assets and Net Interest Margin

          
  As of and for the three months ended
  March 31,  December 31,  March 31, 
  2024 2023 2023
Interest income $ 131,732     $134,703     $113,533 
Add: impact of taxable equivalent adjustment   1,692   1,667   1,414 
Interest income FTE (non-GAAP) $ 133,424  $136,370  $114,947 
          
Net interest income $ 84,030  $89,501  $94,889 
Add: impact of taxable equivalent adjustment   1,692   1,667   1,414 
Net interest income FTE (non-GAAP) $ 85,722  $91,168  $96,303 
          
Average earning assets $ 9,127,330  $9,147,977  $8,902,740 
Yield on earning assets  5.80%  5.84%  5.17%
Yield on earning assets FTE (non-GAAP)  5.88%  5.91%  5.24%
Net interest margin  3.70%  3.88%  4.32%
Net interest margin FTE (non-GAAP)  3.78%  3.95%  4.39%
             

Efficiency Ratio and Pre-Provision Net Revenue

  As of and for the three months ended
     March 31,     December 31,     March 31, 
     2024     2023    2023
Net interest income $ 84,030  $89,501  $94,889 
Add: impact of taxable equivalent adjustment   1,692   1,667   1,414 
Net interest income FTE (non-GAAP) $ 85,722  $91,168  $96,303 
          
Non-interest income $ 17,694  $16,064  $14,665 
          
Non-interest expense $ 62,834  $62,095  $58,292 
Less: other intangible assets amortization   (2,008)  (2,008)  (1,363)
Non-interest expense excluding other intangible assets amortization (non-GAAP) $ 60,826  $60,087  $56,929 
          
Efficiency ratio  61.77%  58.82%  53.21%
Efficiency ratio excluding other intangible assets amortization FTE (non-GAAP)  58.82%  56.03%  51.30%
Pre-provision net revenue (non-GAAP) $ 38,890  $43,470  $51,262 
Pre-provision net revenue, FTE (non-GAAP)   40,582   45,137   52,676 


FAQ

What was National Bank Holdings 's (NBHC) net income for the first quarter of 2024?

NBHC reported net income of $31.4 million.

What was the return on average tangible common equity for NBHC in the first quarter of 2024?

NBHC achieved a return on average tangible common equity of 15.14%.

Did NBHC experience growth in fee income in the first quarter of 2024?

Yes, NBHC delivered strong fee income growth of 40.8% annualized over the prior quarter.

What was the change in net interest income for NBHC from the fourth quarter of 2023 to the first quarter of 2024?

Net interest income decreased from $91.2 million to $85.7 million.

Did NBHC record any provision expense for credit losses in the first quarter of 2024?

No, NBHC recorded no provision expense for credit losses.

What was the change in non-interest income for NBHC in the first quarter of 2024 compared to the fourth quarter of 2023?

Non-interest income increased by $1.6 million during the first quarter.

How did NBHC's non-interest expense change in the first quarter of 2024 compared to the previous quarter?

Non-interest expense increased to $62.8 million during the first quarter.

What were the capital ratios for NBHC at the end of March 31, 2024?

The tier 1 leverage ratio was 9.99% and the common equity tier 1 capital ratio was 12.35%.

How did NBHC's net income for the first quarter of 2024 compare to the same period in 2023?

Net income decreased from $40.3 million in 2023 to $31.4 million in 2024.

NATIONAL BANK HOLDINGS CORP.

NYSE:NBHC

NBHC Rankings

NBHC Latest News

NBHC Stock Data

1.60B
37.92M
2.26%
99.69%
1.77%
Banks - Regional
National Commercial Banks
Link
United States of America
GREENWOOD VILLAGE