第99.1展示文本
National Bank控股公司宣布
2024年第三季度财务业绩以及季度股息增长
科罗拉多州丹佛——（环球新闻社）—National Bank控股公司（纽交所：NBHC）报告：
| | 本季度(1) | | 该年度(1) | |||||||||||
| | 3Q24 | | 2Q24 | | 3Q23 | | 2024 | | 2023 | |||||
净利润（千美元） | | $ | 33,105 | | $ | 26,135 | | $ | 36,087 | | $ | 90,631 | | $ | 108,927 |
每股收益（摊薄） | | $ | 0.86 | | $ | 0.68 | | $ | 0.94 | | $ | 2.36 | | $ | 2.85 |
平均资产回报率 | | | 1.32% | | | 1.06% | | | 1.46% | | | 1.22% | | | 1.50% |
平均有形资产回报率(2) | | | 1.43% | | | 1.17% | | | 1.58% | | | 1.33% | | | 1.61% |
平均净资产回报率 | | | 10.33% | | | 8.46% | | | 12.26% | | | 9.70% | | | 12.71% |
平均有形普通股权益回报率(2) | | | 14.84% | | | 12.44% | | | 18.38% | | | 14.14% | | | 18.81% |
(1) | | 比率为年度数据。 |
(2) | | 请参阅第14页开始的非通用会计准则调和 |
首席执行官Tim Laney在宣布这些结果时表示：“我们每股摊薄收益达到了0.86美元，平均有形普通股权益回报率为14.84%。凭借我们的资产负债表、资本状况和收入实力，我们很高兴宣布将季度股息提高3.6%至每股0.29美元。在本季度，我们对贷款和存款定价的纪律性方法推动了净利息收益率扩张11个基点至3.87%。我们的团队在核心银行手续费方面取得了稳健的季度增长，我们继续利用我们在特许经营中多样化收入流的优势，实现了有意义的年度手续费收入增长。”
Laney先生补充道：“我们继续警惕地监控我们的贷款组合，自2023年初以来，呈现非 performing 贷款比率的最低水平。我们的团队坚守谨慎、纪律性的方法，限制我们的贷款账本和存款人基础中的集中度，并定期对我们的贷款组合进行充分的压力测试。我们从一个强劲而稳定的位置迈入第四季度，预计将以强劲姿态结束本年。我们相信我们的普通股一级资本比率为12.88%、充裕的流动性位置以及多元化的资金来源为未来增长提供了选择性。”
2024年第三季度业绩
(所有比较均参照2024年第二季度，除非另有说明)
净利润增加了700万美元，增长26.7%，达到3310万美元，每股摊薄收益为0.86美元，而去年同期为2610万美元，每股摊薄收益为0.68美元。本季度增长主要归因于净利息收益和手续费收入的增长。上一季度包括与创投投资相关的390万美元减值。完全应税当量前准备净收入增加了750万美元，增长20.6%，达到4370万美元。平均有形资产收益率增加了26个基点，达到1.43%，而平均有形普通股权益收益率增加了240个基点，达到14.84%。
净利息收入
完全应税当量净利息收益增加了420万美元，达到8950万美元，受到平均利息收益资产增加7470万美元、平均贷款收益率增加12个基点和本季度多一天的影响。完全应税当量净
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利差扩大11个基点，至3.87%，主要由于赚取资产收益率增长13个基点，部分抵消了成本资金增加2个基点。
贷款
贷款在2024年9月30日达到77亿美元，与上一季度保持一致。我们产生的季度贷款资金总额为35930万美元，其中以21910万美元的商业贷款资金为主导。第三季度贷款发放的平均利率为8.5%。
资产质量和信用损失准备
公司为信用损失准备录得200万美元的费用，较上一季度的280万美元有所减少。本季度的信用损失准备费用主要是由于CECL模型基础经济预测的变化造成的储备要求提高。年化净计提减少四个基点，达到总贷款的0.18%，其中包括在本季度解决了之前保留的一项信用。截至2024年9月30日，不良贷款减少了三个基点，占总贷款的0.31%，而不良资产减少了四个基点，占总贷款和房管局OREO的比例为0.32%。截至2024年9月30日，信用损失准备金占贷款总额的比例达到1.23%，而上一季度为1.25%。
存款
第三季度2024年，平均存款总额增加2130万美元，达到84亿美元。2024年9月30日，贷款存款比达到90.8%。平均交易存款（定义为总存款减去定期存款）总额为74亿美元，与上一季度保持一致。2024年9月30日，交易存款占总存款的比例为88%，与2024年6月30日一致。
非利息收入
非利息收入增加了440万至1840万，主要受到我们多样化服务费收入来源的增加推动。服务费增加60万，掉期费用收入增加30万，trust费收入增加10万。这些增长部分被按揭银行收入减少30万所抵消。上一季度包括390万美元与创投投资相关的减值损失。
非利息支出
第三季度非利息支出总额为6420万美元，较上一季度的6310万美元有所增加。薪资和福利增加40万美元，主要是由于本季度多了一天的工资支付日。专业费用增加40万美元，数据处理增加30万美元，主要是由于我们持续对技术的投资。这些增长部分被房屋和设备支出减少40万美元所抵消。全额应纳税当效率比率，不包括其他无形资产摊销，同比提高了387基点，至57.7%。
所得税支出增加120万美元，达到680万美元，而上一季度为560万美元，这是由于第三季度的税前收入较高。有效税率为17.0%，而第二季度为17.7%。
资本
资本比率继续保持强劲，并超过联邦银行监管机构“充足资本” 阈值。第一层资本杠杆率达到10.44%，普通权益第一层资本比率在2024年9月30日达到12.88%。股东权益在2024年9月30日达到13亿美元，增加了4440万美元。第三季度的净收入推动留存收益增长2220万美元，而利率环境的变化导致其他综合损益改善1790万美元。
每股普通账面价值增加1.09美元，至2024年9月30日达到34.01美元。每股有形普通账面价值增加1.17美元，至24.91美元，因为本季度的盈利和其他综合损益的减少超过了季度股息。
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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%.
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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.
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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: 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
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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
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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. |
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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 starting on page 14. |
8
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. |
9
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. |
10
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. |
11
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% |
| 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% |
12
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 starting on page 14. |
(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. |
13
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 |
14
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 |
15