National Bank Holdings Corporation Announces Fourth Quarter and Record Full Year 2020 Financial Results
01/21/2021 - 04:10 PM
DENVER, Jan. 21, 2021 (GLOBE NEWSWIRE) -- National Bank Holdings Corporation (NYSE: NBHC) reported:
For the quarter For the quarter - adjusted(1) For the year For the year - adjusted (1) 4Q20 3Q20 4Q19 4Q20 3Q20 4Q19 2020 2019 2020 2019 Net income ($000's) $ 27,169 $ 27,893 $ 19,519 $ 27,329 $ 28,224 $ 19,519 $ 88,591 $ 80,365 $ 90,397 $ 81,054 Earnings per share - diluted $ 0.87 $ 0.90 $ 0.62 $ 0.88 $ 0.91 $ 0.62 $ 2.85 $ 2.55 $ 2.91 $ 2.57 Return on average tangible assets(2) 1.67 % 1.76 % 1.35 % 1.68 % 1.78 % 1.35 % 1.44 % 1.42 % 1.47 % 1.43 % Return on average tangible common equity(2) 15.55 % 16.49 % 12.07 % 15.64 % 16.69 % 12.07 % 13.27 % 13.07 % 13.54 % 13.18 %
(1) See non-GAAP reconciliation below. (2) Quarterly ratios are annualized.
In announcing these results, Chief Executive Officer Tim Laney shared, “I am pleased to announce that our solid performance during the fourth quarter contributed to record full year earnings of $2.85 per share. In the face of the pandemic, my teammates came together to serve our clients and communities while also taking care of each other. An intense focus on the safety and soundness of the Bank resulted in full-year net charge-offs of just six basis points. The diversity and granularity of our loan portfolio continues to produce desirable results. Further, we built on our relationship banking model to grow our low cost transaction deposits 28.8% in the fourth quarter, compared to the same period in the prior year.”
Mr. Laney added, “We are proud to have been recognized in Fortune’s 100 Fastest Growing Companies in 2020 and among the top public companies for shareholder value creation. With a strong Common Equity Tier 1 ratio of 14.70% coupled with a sizable liquidity position, we believe we are well positioned for growth in 2021. We will continue to execute our disciplined approach to pursuing growth opportunities while maintaining an intense focus on expense management as we prudently navigate the current economic challenges side-by-side with our clients and our communities.”
Fourth Quarter 2020 Results (All comparisons refer to the third quarter of 2020, except as noted)
Net income totaled $27.2 million during the fourth quarter of 2020, or $0.87 per diluted share, compared to $27.9 million , or $0.90 per diluted share, during the third quarter of 2020. Adjusting for banking center consolidation-related expenses, net income totaled $27.3 million , or $0.88 per diluted share, compared to $28.2 million , or $0.91 per diluted share, during the third quarter of 2020. The return on average tangible assets was 1.67% , compared to 1.76% in the prior quarter, and the return on average tangible common equity was 15.55% , compared to 16.49% , in the prior quarter.
Net Interest Income $49.8 million , increasing $1.8 million , driven by an increase in PPP-related income from PPP loan forgiveness. PPP loan fees were $5.2 million in the fourth quarter of 2020, compared to $1.5 million in the prior quarter. As of December 31, 2020, the remaining unamortized PPP loan fees totaled $3.4 million . The fully taxable equivalent net interest margin was 3.24% , widening three basis points from the prior quarter. The yield on earning assets decreased four basis points largely due to the remix of assets into lower-yielding cash balances, partially offset by accelerated loan fee income from PPP loan forgiveness. Our cost of funds decreased by seven basis points to 0.33% .
Loans $4.4 billion , decreasing $202.4 million , of which $172.2 million was related to PPP loans forgiven during the quarter. Excluding PPP loans, total loans decreased by $30.2 million , or 2.9% annualized. During the quarter, we continued our careful approach to extending new credit as well as continuing an intense focus on managing credit risk and yield. Fourth quarter loan originations totaled $272.5 million , which were $140.0 million higher than the third quarter 2020 and $2.9 million higher than last year’s fourth quarter. We continue to maintain a granular and well diversified loan portfolio with self-imposed concentration limits. In light of the strain placed on industries by the COVID-19 pandemic, we have carefully evaluated and continue to closely monitor our entire loan portfolio. We have highlighted our current highly impacted industries and COVID-19 related loan modifications within the accompanying Supplemental Disclosure.
Asset Quality and Provision for Loan Losses 0.11% of total loans, compared to 0.04% in the prior quarter. Non-performing loans (comprised of non-accrual loans and non-accrual TDRs) totaled 0.47% of total loans, compared to 0.41% at September 30, 2020. The allowance for credit losses as a percentage of total loans increased three basis points to 1.37% at December 31, 2020. Excluding PPP loans, non-performing loans totaled 0.49% of total loans, and the allowance for credit losses as a percentage of totals loans totaled 1.43% at December 31, 2020.
Deposits $172.1 million , or 15.3% annualized, and average total deposits increased $141.4 million , or 10.2% annualized, to $5.7 billion as of December 31, 2020. The mix of transaction deposits to total deposits improved 91 basis points to 82.6% at December 31, 2020. The loan to deposit ratio totaled 76.7% at December 31, 2020, compared to 81.1% at September 30, 2020.
The cost of transaction deposits decreased three basis points from the prior quarter to 0.15% . The cost of total deposits decreased seven basis points from the prior quarter to 0.33% .
Non-Interest Income $33.4 million during the fourth quarter, representing a decrease of $11.2 million , or 25.1% , entirely due to seasonal decreases in mortgage banking income. Service charges and bank card fees increased a combined $0.5 million , and OREO-related income increased $0.2 million .
Non-Interest Expense $48.4 million during the fourth quarter, representing a decrease of $6.9 million largely due to lower mortgage banking performance-related compensation. The fully taxable equivalent efficiency ratio improved 160 basis points to 57.9% at December 31, 2020, compared to 59.5% at September 30, 2020. Adjusting for banking center consolidation-related expense, the fully taxable equivalent efficiency ratio improved to 57.6% at December 31, 2020.
Income tax expense totaled $6.3 million during the fourth quarter, compared to $6.8 million during the prior quarter. The effective tax rate was 18.9% and 19.7% for the fourth and third quarters, respectively.
Capital 10.70% and 9.23% , respectively. Shareholders’ equity totaled $820.7 million at December 31, 2020 and increased $21.3 million from the prior quarter due to higher retained earnings.
Common book value per share increased $0.66 t o $26.79 at December 31, 2020. The quarter’s earnings, net of dividends paid, increased the tangible common book value per share by $0.69 t o $23.09 at December 31, 2020. Excluding accumulated other comprehensive income, the tangible book value per share increased $0.73 t o $22.77 at December 31, 2020.
Recent Events
Year-Over-Year Review (All comparisons refer to the full year 2019, except as noted)
Net income totaled a record $88.6 million during 2020, or $2.85 per diluted share, an increase of $8.2 million , or 10.2% . Adjusting for banking center consolidation-related expenses, net income totaled $90.4 million , or $2.91 per diluted share, an increase of $9.3 million , or 11.5% . The return on average tangible assets was 1.44% , compared to 1.42% in the prior year, and the return on average tangible common equity was 13.27% , compared to 13.07% , in the prior year. The adjusted return on average tangible assets was 1.47% , compared to 1.43% in the prior year, and the adjusted return on average tangible common equity was 13.54% , compared to 13.18% during the prior year.
Fully taxable equivalent net interest income totaled $198.0 million , decreasing $12.8 million , or 6.1% , driven by declines in short-term interest rates as a result of monetary policy actions by the Federal Reserve. Average earning assets increased $427.8 million , or 8.0% , primarily driven by average loan growth of $255.7 million , including average PPP loan growth of $225.9 million , and average increases in interest-bearing cash balances of $182.8 million . These increases were partially offset by a decrease in average investment securities of $81.6 million . The fully taxable equivalent net interest margin narrowed 51 basis points to 3.42% due to lower earning asset yields. The yield on earning assets decreased 76 basis points, led by a 73 basis point decrease in the originated loan portfolio yields that resulted from a decline in short-term interest rates as a result of monetary policy actions by the Federal Reserve. The cost of deposits decreased 19 basis points to 0.45% .
Loans outstanding totaled $4.4 billion , decreasing $61.7 million , or 1.4% , from the prior year, largely due to lower commercial and industrial loans of $140.9 million , or 10.0% , that were offset by PPP loans of $176.1 million . New loan originations over the trailing 12 months totaled $1.2 billion , led by commercial loan originations of $807.3 million , which included PPP loan originations of $358.9 million .
Average non-interest bearing demand deposits increased $338.9 million , or 29.2% . Average transaction deposits increased $642.8 million , or 17.9% , and average total deposits increased $606.4 million , or 13.0% , to $5.3 billion as of December 31, 2020. Spot transaction deposits increased $1.0 billion to $4.7 billion at December 31, 2020, improving the mix of transaction deposits to total deposits by 490 basis points to 82.6% at December 31, 2020. The mix of non-interest bearing demand deposits to total deposits improved to 37.2% from 25.0% at December 31, 2019.
A CECL model driven provision for loan losses of $17.6 million was recorded during 2020, including a $0.1 million provision for unfunded loan commitment reserves, to provide coverage for the impact of deteriorating economic conditions as a result of COVID-19. Net charge-offs on loans totaled 0.06% of total loans, compared to 0.19% in the prior year. Non-performing loans to total loans decreased two basis points to 0.47% , compared to 0.49% at December 31, 2019. The allowance for credit losses totaled 1.37% of total loans, compared to 0.88% at December 31, 2019 and included a CECL adoption Day 1 increase of $5.8 million . Excluding PPP loans, the allowance for credit losses as a percentage of total loans increased to 1.43% at December 31, 2020.
Non-interest income totaled $140.3 million , representing an increase of $57.5 million , or 69.5% , driven by an increase in mortgage banking income. Service charges and bank card fees decreased a combined $2.1 million and were impacted by changes in consumer behavior due to COVID-19.
Non-interest expense totaled $206.2 million , representing an increase of $25.4 million , or 14.1% , largely due to higher mortgage banking performance-related compensation. Banking center consolidation-related expense totaled $2.3 million , compared to $0.9 million during the prior year. The consolidations of 12 banking centers were announced in the second quarter of 2020 and were substantially complete at December 31, 2020. Other non-interest expense decreased by $1.4 million largely due to decreases in travel as well as marketing and development expenses. Additionally, included in the prior period were net gains on the sale of OREO of $7.2 million , compared to minimal net gains on the sale of OREO recorded in 2020.
Income tax expense totaled $20.8 million , compared to $15.8 million during 2019. Included in income tax expense was $2.2 million of benefit during 2019 from stock compensation activity. The effective tax rate for 2020 was 19.0% , compared to 18.7% in the prior year, adjusting for stock compensation activity. The lower rate compared to the statutory rate reflects the continued success of our tax strategies and tax exempt income.
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About Non-GAAP Financial Measures
These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and you should not rely on non-GAAP financial measures alone as measures of our performance. The non-GAAP financial measures we present may differ from non-GAAP financial measures used by our peers or other companies. We compensate for these limitations by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance.
A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.
About National Bank Holdings Corporation
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Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contain words such as “anticipate,” “believe,” “can,” “would,” “should,” “could,” “may,” “predict,” “seek,” “potential,” “will,” “estimate,” “target,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “intend” or similar expressions that relate to the Company’s strategy, plans or intentions. Forward-looking statements involve certain important risks, uncertainties and other factors, any of which could cause actual results to differ materially from those in such statements. Such factors include, without limitation, the “Risk Factors” referenced in our most recent Form 10-K filed with the Securities and Exchange Commission (SEC), other risks and uncertainties listed from time to time in our reports and documents filed with the SEC, and the following factors: ability to execute our business strategy; business and economic conditions; effects of a prolonged government shutdown; economic, market, operational, liquidity, credit and interest rate risks associated with the Company’s business; effects of any changes in trade, monetary and fiscal policies and laws; changes imposed by regulatory agencies to increase capital standards; effects of inflation, as well as, interest rate, securities market and monetary supply fluctuations; changes in the economy or supply-demand imbalances affecting local real estate values; changes in consumer spending, borrowings and savings habits; with respect to our mortgage business, the inability to negotiate fees with investors for the purchase or our loans or our obligation to indemnify purchasers or repurchase related loans; the Company’s ability to identify potential candidates for, consummate, integrate and realize operating efficiencies from, acquisitions, consolidations and other expansion opportunities; the Company's ability to realize anticipated benefits from enhancements or updates to its core operating systems from time to time without significant change in client service or risk to the Company's control environment; the Company's dependence on information technology and telecommunications systems of third party service providers and the risk of systems failures, interruptions or breaches of security; the Company’s ability to achieve organic loan and deposit growth and the composition of such growth; changes in sources and uses of funds; increased competition in the financial services industry; the effect of changes in accounting policies and practices; the share price of the Company’s stock; the Company's ability to realize deferred tax assets or the need for a valuation allowance; continued consolidation in the financial services industry; ability to maintain or increase market share and control expenses; costs and effects of changes in laws and regulations and of other legal and regulatory developments; technological changes; the timely development and acceptance of new products and services; the Company’s continued ability to attract, hire and maintain qualified personnel; ability to implement and/or improve operational management and other internal risk controls and processes and reporting system and procedures; regulatory limitations on dividends from the Company's bank subsidiary; changes in estimates of future loan reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; widespread natural and other disasters, pandemics, dislocations, political instability, acts of war or terrorist activities, cyberattacks or international hostilities; adverse effects due to the novel Coronavirus Disease 2019 (COVID-19) on the Company and its clients, counterparties, employees, and third-party service providers, and the adverse impacts on our business, financial position, results of operations, and prospects; impact of reputational risk; and success at managing the risks involved in the foregoing items. The Company can give no assurance that any goal or plan or expectation set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements. The forward-looking statements are made as of the date of this press release, and the Company does not intend, and assumes no obligation, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law.
Contact :ir@nationalbankholdings.com Jody.Soper@nbhbank.com
NATIONAL BANK HOLDINGS CORPORATION FINANCIAL SUMMARY Consolidated Statements of Operations (Unaudited)
For the three months ended For the years ended December 31, September 30, December 31, December 31, December 31, 2020 2020 2019 2020 2019 Total interest and dividend income $ 53,288 $ 52,302 $ 59,616 $ 218,002 $ 242,601 Total interest expense 4,732 5,587 9,228 25,056 36,771 Net interest income 48,556 46,715 50,388 192,946 205,830 Taxable equivalent adjustment 1,260 1,275 1,290 5,103 5,065 Net interest income FTE(1) 49,816 47,990 51,678 198,049 210,895 Provision for loan losses — 1,200 1,180 17,630 11,643 Net interest income after provision for loan losses FTE(1) 49,816 46,790 50,498 180,419 199,252 Non-interest income: Service charges 4,000 3,742 4,416 14,962 17,895 Bank card fees 4,240 4,039 3,649 15,446 14,595 Mortgage banking income 23,138 34,943 10,309 102,384 42,346 Other non-interest income 1,695 1,733 1,740 7,079 7,601 OREO-related income 284 75 168 387 315 Total non-interest income 33,357 44,532 20,282 140,258 82,752 Non-interest expense: Salaries and benefits 32,919 38,614 30,653 141,170 122,732 Occupancy and equipment 6,619 6,878 6,908 27,473 27,336 Professional fees 864 714 658 2,946 3,256 Other non-interest expense 6,725 7,443 6,849 27,947 29,347 Problem asset workout 807 1,064 736 3,148 3,186 (Gain) loss on sale of OREO, net (13 ) (119 ) 7 (38 ) (7,193 ) Core deposit intangible asset amortization 296 295 296 1,183 1,183 Banking center consolidation-related expense 208 432 — 2,348 898 Total non-interest expense 48,425 55,321 46,107 206,177 180,745 Income before income taxes FTE(1) 34,748 36,001 24,673 114,500 101,259 Taxable equivalent adjustment 1,260 1,275 1,290 5,103 5,065 Income before income taxes 33,488 34,726 23,383 109,397 96,194 Income tax expense 6,319 6,833 3,864 20,806 15,829 Net income $ 27,169 $ 27,893 $ 19,519 $ 88,591 $ 80,365 Earnings per share - basic $ 0.88 $ 0.91 $ 0.62 $ 2.87 $ 2.57 Earnings per share - diluted 0.87 0.90 0.62 2.85 2.55
(1 ) Net interest income is presented on a GAAP basis and fully taxable equivalent (FTE) basis, as the Company believes this non-GAAP measure is the preferred industry measurement for this item. The FTE adjustment is for the tax benefit on certain tax exempt loans using the federal tax rate of 21% for each period presented.
NATIONAL BANK HOLDINGS CORPORATION Consolidated Statements of Financial Condition (Unaudited)
December 31, 2020 September 30, 2020 December 31, 2019 ASSETS Cash and cash equivalents $ 605,565 $ 445,103 $ 110,190 Investment securities available-for-sale 661,955 572,523 638,249 Investment securities held-to-maturity 376,615 320,001 182,884 Non-marketable securities 16,493 29,598 29,751 Loans 4,353,726 4,556,121 4,415,406 Allowance for credit losses (59,777 ) (60,979 ) (39,064 ) Loans, net 4,293,949 4,495,142 4,376,342 Loans held for sale 247,813 273,003 117,444 Other real estate owned 4,730 4,590 7,300 Premises and equipment, net 106,982 108,860 112,151 Goodwill 115,027 115,027 115,027 Intangible assets, net 17,928 15,017 11,361 Other assets 212,893 221,812 194,813 Total assets $ 6,659,950 $ 6,600,676 $ 5,895,512 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Non-interest bearing demand deposits $ 2,111,045 $ 1,533,676 $ 1,184,945 Interest bearing demand deposits 514,286 976,133 738,496 Savings and money market 2,064,769 2,079,585 1,755,538 Total transaction deposits 4,690,100 4,589,394 3,678,979 Time deposits 986,132 1,027,066 1,058,153 Total deposits 5,676,232 5,616,460 4,737,132 Securities sold under agreements to repurchase 22,897 23,904 56,935 Federal Home Loan Bank advances — — 207,675 Other liabilities 140,130 160,955 126,850 Total liabilities 5,839,259 5,801,319 5,128,592 Shareholders' equity: Common stock 515 515 515 Additional paid in capital 1,011,362 1,010,145 1,009,223 Retained earnings 223,175 202,238 164,082 Treasury stock (424,127 ) (424,621 ) (408,962 ) Accumulated other comprehensive income, net of tax 9,766 11,080 2,062 Total shareholders' equity 820,691 799,357 766,920 Total liabilities and shareholders' equity $ 6,659,950 $ 6,600,676 $ 5,895,512 SHARE DATA Average basic shares outstanding 30,784,896 30,756,116 31,299,989 Average diluted shares outstanding 31,032,648 30,924,223 31,525,911 Ending shares outstanding 30,634,291 30,594,412 31,176,627 Common book value per share $ 26.79 $ 26.13 $ 24.60 Tangible common book value per share(1) (non-GAAP) 23.09 22.40 20.89 Tangible common book value per share, excluding accumulated other comprehensive income(1) (non-GAAP) 22.77 22.04 20.83 CAPITAL RATIOS Average equity to average assets 12.27 % 12.22 % 12.91 % Tangible common equity to tangible assets(1) 10.80 % 10.57 % 11.27 % Tier 1 leverage ratio 10.70 % 10.60 % 11.04 % Common equity tier 1 risk-based capital ratio 14.70 % 14.25 % 13.21 % Tier 1 risk-based capital ratio 14.70 % 14.25 % 13.21 % Total risk-based capital ratio 15.83 % 15.40 % 14.08 %
(1 ) Represents a non-GAAP financial measure. See non-GAAP reconciliations below.
NATIONAL BANK HOLDINGS CORPORATION Loan Portfolio
Period End Loan Balances by Type
December 31, 2020 December 31, 2020 vs. September 30, 2020 vs. December 31, 2019 December 31, 2020 September 30, 2020 % Change December 31, 2019 % Change Originated: Commercial: Commercial and industrial $ 1,248,530 $ 1,228,550 1.6 % $ 1,380,248 (9.5 )% Municipal and non-profit 870,410 883,065 (1.4 )% 833,707 4.4 % Owner-occupied commercial real estate 464,417 460,487 0.9 % 414,477 12.0 % Food and agribusiness 205,189 210,818 (2.7 )% 245,320 (16.4 )% PPP loans(1) 176,106 348,257 (49.4 )% — 100.0 % Total commercial 2,964,652 3,131,177 (5.3 )% 2,873,752 3.2 % Commercial real estate non-owner occupied 542,642 515,415 5.3 % 505,479 7.4 % Residential real estate 581,555 614,449 (5.4 )% 651,656 (10.8 )% Consumer 18,581 20,196 (8.0 )% 21,030 (11.6 )% Total originated 4,107,430 4,281,237 (4.1 )% 4,051,917 1.4 % Acquired: Commercial: Commercial and industrial 22,102 23,984 (7.8 )% 31,284 (29.4 )% Municipal and non-profit 381 576 (33.9 )% 3,819 (90.0 )% Owner-occupied commercial real estate 51,821 55,929 (7.3 )% 75,645 (31.5 )% Food and agribusiness 5,108 5,740 (11.0 )% 7,807 (34.6 )% Total commercial 79,412 86,229 (7.9 )% 118,555 (33.0 )% Commercial real estate non-owner occupied 89,354 101,672 (12.1 )% 125,426 (28.8 )% Residential real estate 77,105 86,478 (10.8 )% 118,762 (35.1 )% Consumer 425 505 (15.8 )% 746 (43.0 )% Total acquired 246,296 274,884 (10.4 )% 363,489 (32.2 )% Total loans $ 4,353,726 $ 4,556,121 (4.4 )% $ 4,415,406 (1.4 )%
(1 ) PPP loan balances are net of fees and costs and include principal totaling $179,531 and $356,913 as of December 31, 2020 and September 30, 2020, respectively.
Originations ( 1)
Fourth quarter Third quarter Second quarter First quarter Fourth quarter 2020 2020 2020 2020 2019 Commercial: Commercial and industrial $ 96,625 $ 11,354 $ (8,726 ) $ 118,999 $ 69,048 Municipal and non-profit 25,348 6,083 49,679 13,968 46,114 Owner occupied commercial real estate 36,085 23,758 22,078 37,372 46,965 Food and agribusiness 19,191 13,876 (10,480 ) (6,787 ) 20,348 PPP loans — 122 358,798 — — Total commercial 177,249 55,193 411,349 163,552 182,475 Commercial real estate non-owner occupied 52,018 24,937 18,992 80,792 41,256 Residential real estate 41,355 49,786 29,024 46,273 43,493 Consumer 1,858 2,980 2,206 2,320 2,315 Total $ 272,480 $ 132,896 $ 461,571 $ 292,937 $ 269,539
(1 ) Originations are defined as closed end funded loans and net fundings under revolving lines of credit. Net funding under revolving lines of credit were $50,982, ($27,899), ($55,826), $48,789 and $1,756 as of the fourth quarter 2020, third quarter 2020, second quarter 2020, first quarter 2020 and fourth quarter 2019, respectively.
NATIONAL BANK HOLDINGS CORPORATION Summary of Net Interest Margin
For the three months ended For the three months ended For the three months ended December 31, 2020 September 30, 2020 December 31, 2019 Average Average Average Average Average Average balance Interest rate balance Interest rate balance Interest rate Interest earning assets: Originated loans FTE(1)(2) $ 4,129,155 $ 43,200 4.16 % $ 4,343,335 $ 40,973 3.75 % $ 4,002,813 $ 46,466 4.61 % Acquired loans 259,233 5,715 8.77 % 284,653 6,593 9.21 % 377,330 7,525 7.91 % Loans held for sale 248,326 1,699 2.72 % 230,390 1,683 2.91 % 181,550 1,657 3.62 % Investment securities available-for-sale 574,642 2,177 1.52 % 559,330 2,784 1.99 % 642,297 3,413 2.13 % Investment securities held-to-maturity 369,812 1,410 1.53 % 242,511 1,253 2.07 % 187,274 1,257 2.68 % Other securities 18,195 212 4.66 % 29,640 221 2.98 % 29,681 471 6.35 % Interest earning deposits and securities purchased under agreements to resell 509,150 135 0.11 % 254,931 70 0.11 % 17,096 117 2.72 % Total interest earning assets FTE (2) $ 6,108,513 $ 54,548 3.55 % $ 5,944,790 $ 53,577 3.59 % $ 5,438,041 $ 60,906 4.44 % Cash and due from banks $ 73,768 $ 73,274 $ 76,568 Other assets 514,053 525,324 448,596 Allowance for credit losses (60,844 ) (60,372 ) (38,746 ) Total assets $ 6,635,490 $ 6,483,016 $ 5,924,459 Interest bearing liabilities: Interest bearing demand, savings and money market deposits $ 2,746,597 $ 1,776 0.26 % $ 2,957,604 $ 1,990 0.27 % $ 2,429,417 $ 3,101 0.51 % Time deposits 1,008,297 2,949 1.16 % 1,038,983 3,501 1.34 % 1,062,511 4,464 1.67 % Securities sold under agreements to repurchase 23,410 7 0.12 % 22,667 10 0.18 % 57,870 149 1.02 % Federal Home Loan Bank advances — — 0.00 % 1,141 86 29.99 % 301,433 1,514 1.99 % Total interest bearing liabilities $ 3,778,304 $ 4,732 0.50 % $ 4,020,395 $ 5,587 0.55 % $ 3,851,231 $ 9,228 0.95 % Demand deposits $ 1,898,171 $ 1,515,058 $ 1,177,958 Other liabilities 144,532 155,205 130,576 Total liabilities 5,821,007 5,690,658 5,159,765 Shareholders' equity 814,483 792,358 764,694 Total liabilities and shareholders' equity $ 6,635,490 $ 6,483,016 $ 5,924,459 Net interest income FTE(2) $ 49,816 $ 47,990 $ 51,678 Interest rate spread FTE(2) 3.05 % 3.04 % 3.49 % Net interest earning assets $ 2,330,209 $ 1,924,395 $ 1,586,810 Net interest margin FTE(2) 3.24 % 3.21 % 3.77 % Average transaction deposits $ 4,644,768 $ 4,472,662 $ 3,607,375 Average total deposits 5,653,065 5,511,645 4,669,886 Ratio of average interest earning assets to average interest bearing liabilities 161.67 % 147.87 % 141.20 %
(1 ) Originated loans are net of deferred loan fees, less costs, which are included in interest income over the life of the loan. (2 ) Presented on a fully taxable equivalent basis using the statutory tax rate of 21% . The tax equivalent adjustments included above are $1,260, $1,275 and $1,290 for the three months ended December 31, 2020, September 30, 2020 and December 31, 2019, respectively.
NATIONAL BANK HOLDINGS CORPORATION Summary of Net Interest Margin
For the year ended December 31, 2020 For the year ended December 31, 2019 Average Average Average Average balance Interest rate balance Interest rate Interest earning assets: Originated loans FTE(1)(2) $ 4,237,091 $ 171,592 4.05 % $ 3,838,229 $ 183,502 4.78 % Acquired loans 299,901 27,909 9.31 % 443,025 35,992 8.12 % Loans held for sale 185,182 5,628 3.04 % 113,183 4,407 3.89 % Investment securities available-for-sale 591,870 11,406 1.93 % 713,686 15,472 2.17 % Investment securities held-to-maturity 248,006 5,099 2.06 % 207,784 5,825 2.80 % Other securities 26,903 1,157 4.30 % 28,060 1,770 6.31 % Interest earning deposits and securities purchased under agreements to resell 206,911 314 0.15 % 24,106 698 2.90 % Total interest earning assets FTE (2) $ 5,795,864 $ 223,105 3.85 % $ 5,368,073 $ 247,666 4.61 % Cash and due from banks $ 74,461 $ 76,788 Other assets 511,721 430,402 Allowance for credit losses (55,778 ) (38,142 ) Total assets $ 6,326,268 $ 5,837,121 Interest bearing liabilities: Interest bearing demand, savings and money market deposits $ 2,730,857 $ 8,605 0.32 % $ 2,426,963 $ 13,277 0.55 % Time deposits 1,038,107 15,024 1.45 % 1,074,506 16,526 1.54 % Securities sold under agreements to repurchase 28,585 132 0.46 % 60,445 668 1.11 % Federal Home Loan Bank advances 95,418 1,295 1.36 % 269,207 6,300 2.34 % Total interest bearing liabilities $ 3,892,967 $ 25,056 0.64 % $ 3,831,121 $ 36,771 0.96 % Demand deposits $ 1,497,940 $ 1,159,080 Other liabilities 147,075 108,997 Total liabilities 5,537,982 5,099,198 Shareholders' equity 788,286 737,923 Total liabilities and shareholders' equity $ 6,326,268 $ 5,837,121 Net interest income FTE(2) $ 198,049 $ 210,895 Interest rate spread FTE(2) 3.21 % 3.65 % Net interest earning assets $ 1,902,897 $ 1,536,952 Net interest margin FTE(2) 3.42 % 3.93 % Average transaction deposits $ 4,228,797 $ 3,586,043 Average total deposits 5,266,904 4,660,549 Ratio of average interest earning assets to average interest bearing liabilities 148.88 % 140.12 %
(1 ) Originated loans are net of deferred loan fees, less costs, which are included in interest income over the life of the loan. (2 ) Presented on a fully taxable equivalent basis using the statutory tax rate of 21% . The tax equivalent adjustments included above are $5,103 and $5,065 for the years ended December 31, 2020 and December 31, 2019, respectively.
NATIONAL BANK HOLDINGS CORPORATION Allowance for Credit Losses and Asset Quality
Allowance for Credit Losses Analysis
As of and for the three months ended December 31, 2020 September 30, 2020 December 31, 2019 Beginning allowance for credit losses $ 60,979 $ 60,465 $ 38,710 Charge-offs (1,259 ) (619 ) (937 ) Recoveries 57 133 111 Provision — 1,000 1,180 Ending allowance for credit losses ("ACL") $ 59,777 $ 60,979 $ 39,064 Ratio of annualized net charge-offs to average total loans during the period 0.11 % 0.04 % 0.07 % Ratio of annualized net charge-offs to average total loans excluding PPP loans during the period 0.11 % 0.04 % 0.07 % Ratio of ACL to total loans outstanding at period end 1.37 % 1.34 % 0.88 % Ratio of ACL to total loans outstanding excluding PPP loans at period end 1.43 % 1.45 % 0.88 % Ratio of ACL to total non-performing loans at period end 293.21 % 322.95 % 179.62 % Total loans $ 4,353,726 $ 4,556,121 $ 4,415,406 Average total loans during the period 4,431,694 4,677,630 4,401,803 Average total loans excluding PPP loans during the period 4,160,520 4,329,458 4,401,803 Total non-performing loans 20,387 18,882 21,748
Past Due and Non-accrual Loans
December 31, 2020 September 30, 2020 December 31, 2019 Loans 30-89 days past due and still accruing interest $ 968 $ 6,587 $ 6,349 Loans 90 days past due and still accruing interest 162 161 1,662 Non-accrual loans 20,387 18,882 21,748 Total past due and non-accrual loans $ 21,517 $ 25,630 $ 29,759 Total 90 days past due and still accruing interest and non-accrual loans to total loans 0.47 % 0.42 % 0.53 %
Asset Quality Data
December 31, 2020 September 30, 2020 December 31, 2019 Non-performing loans $ 20,387 $ 18,882 $ 21,748 OREO 4,730 4,590 7,300 Other repossessed assets 17 — — Total non-performing assets $
National Bank Holdings Corp
NBHC Rankings
#3859 Ranked by Stock Gains
NBHC Stock Data
Industry
Commercial Banking
Sector
Finance and Insurance
Tags
Finance, Regional Banks, Finance and Insurance, Commercial Banking
About NBHC
national bank holdings corporation operates as the bank holding company for nbh bank that provides various banking products and financial services to commercial, business, and consumer clients in the united states. the company offers deposit products, including checking accounts, savings accounts, money market accounts, and other deposit accounts, including fixed-rate and fixed maturity time deposits. it also provides commercial and industrial loans and leases, such as working capital loans, equipment loans, lender finance loans, food and agriculture loans, government and non-profit loans, owner occupied commercial real estate loans, and other commercial loans and leases. the company also offers non-owner occupied commercial real estate loans consisting of loans on commercial properties, such as office buildings, warehouse/distribution buildings, multi-family, hospitality, and retail buildings; small business administration loans to support manufacturers, distributors, and service prov
