National Bank Holdings Corporation Announces Second Quarter 2025 Financial Results
DENVER, July 22, 2025 (GLOBE NEWSWIRE) -- National Bank Holdings Corporation (the "Company") reported:
For the quarter(1)
For the six months ended(1)
2Q25
1Q25
2Q24
2025
2024
Net income ($000's)
$
34,022
$
24,231
$
26,135
$
58,253
$
57,526
Earnings per share - diluted
$
0.88
$
0.63
$
0.68
$
1.51
$
1.50
Return on average assets
1.38
%
0.99
%
1.06
%
1.19
%
1.17
%
Return on average tangible assets(2)
1.49
%
1.09
%
1.17
%
1.29
%
1.28
%
Return on average equity
10.15
%
7.42
%
8.46
%
8.80
%
9.37
%
Return on average tangible common equity(2)
14.18
%
10.64
%
12.44
%
12.44
%
13.77
%
(1
)
Ratios are annualized.
(2
)
See non-GAAP reconciliations below.
In announcing these results, Chief Executive Officer Tim Laney shared, "We delivered quarterly earnings of $0.88 of earnings per diluted share and a return on average tangible common equity of 14.18%. Year-over-year fully taxable equivalent pre-provision net revenues grew by 19.9% highlighted by a strong net interest margin of 3.95%. We remain diligent in monitoring our loan book and maintaining a disciplined approach to extending credit, which resulted in just 5 basis points of annualized net charge-offs during the quarter."
Mr. Laney added, "Our solid results continue to generate meaningful capital growth with a Common Equity Tier 1 capital ratio of 14.2%. Our excess capital position provides us with optionality to act on a variety of growth opportunities. We are pleased with the recent launch of 2UniFi, an innovative financial ecosystem that we believe can change the way business owners and operators access the U.S. banking system. 2UniFi is built to empower business entrepreneurs with banking and business tools that save time, reduce stress, and help them grow their business."
Second Quarter 2025 Results(All comparisons refer to the first quarter of 2025, except as noted)
Net income increased $9.8 million, or 40.4%, to $34.0 million or $0.88 per diluted share, compared to $24.2 million or $0.63 per diluted share. Fully taxable equivalent pre-provision net revenue increased $1.5 million, or 14.3% annualized, to $43.5 million. The return on average tangible assets increased 40 basis points to 1.49%, and the return on average tangible common equity increased 3.54% to 14.18%. Compared to the second quarter of 2024, fully taxable equivalent pre-provision net revenue increased $7.2 million or 19.9%.
Net Interest IncomeFully taxable equivalent net interest income increased $0.7 million to $89.3 million due to one additional day during the second quarter. The fully taxable equivalent net interest margin widened two basis points to 3.95%, driven by a three basis point increase in earning asset yields, partially offset by an increase in the cost of funds.
LoansLoans totaled $7.5 billion at June 30, 2025, compared to $7.6 billion. We generated quarterly loan fundings of $322.7 million, led by commercial loan fundings of $219.6 million. The second quarter's weighted average rate on new loans at the time of origination was 7.4%, compared to a weighted average yield of 6.5% on our loan portfolio.
Asset Quality and Provision for Credit LossesThe Company recorded no provision expense for credit losses, compared to $10.2 million in the previous quarter. Annualized net charge-offs totaled 0.05% of average total loans, compared to 0.80%. Non-performing loans totaled 0.45% of total loans at June 30, 2025, consistent with the previous quarter, and non-performing assets decreased one basis point to 0.45% of total loans and OREO at June 30, 2025. The allowance for credit losses as a percentage of loans increased one basis point to 1.19% at June 30, 2025.
DepositsAverage total deposits decreased $58.8 million to $8.2 billion during the second quarter 2025, and average transaction deposits (defined as total deposits less time deposits) decreased $85.3 million to $7.1 billion. The loan to deposit ratio totaled 90.5% at June 30, 2025, compared to 90.8%. The mix of transaction deposits to total deposits was 87.0% at June 30, 2025, compared to 87.4%.
Non-Interest IncomeNon-interest income increased $1.7 million, or 11.0%, to $17.1 million during the second quarter. Income from partnership investments increased $0.6 million, bank card fees increased $0.5 million, SBA loan gains on sale increased $0.2 million, and the sales of two previously consolidated banking center properties drove a $1.3 million gain. Mortgage banking income decreased $0.8 million.
Non-Interest ExpenseNon-interest expense totaled $62.9 million, compared to $62.0 million in the first quarter, which benefited from the $1.9 million payroll tax credits realized in the first quarter. Excluding the impact from the first quarter's payroll tax credits, non-interest expense decreased $1.0 million due to our disciplined expense management. The second quarter's non-interest expense includes $0.3 million of non-recurring restructuring charges as a result of expense reduction actions executed during the quarter. The fully taxable equivalent efficiency ratio improved 42 basis points to 57.3%, excluding other intangible assets amortization.
Income tax expense totaled $7.5 million, compared to $5.6 million in the previous quarter, as a result of higher pre-tax income in the second quarter. The effective tax rate was 18.1%, compared to 18.8% in the first quarter.
CapitalCapital ratios continue to be well in excess of federal bank regulatory agency "well capitalized" thresholds. The tier 1 leverage ratio totaled 11.18%, and the common equity tier 1 capital ratio totaled 14.17% at June 30, 2025. Shareholders' equity increased $23.2 million to $1.4 billion at June 30, 2025, primarily driven by $22.5 million of growth in retained earnings from net income after covering the quarter's dividend, and a $4.1 million improvement in accumulated other comprehensive loss due to changes in the interest rate environment.
Common book value per share increased $0.65 to $35.55 at June 30, 2025. Tangible common book value per share increased $0.70 to $26.64 driven by the quarter's earnings after covering the quarterly dividend, and a $0.11 improvement in accumulated other comprehensive loss.
Year-Over-Year Review(All comparisons refer to the first six months of 2024, except as noted)
Net income increased $0.7 million to $58.3 million or $1.51 per diluted share, compared to $57.5 million or $1.50 per diluted share. Fully taxable equivalent pre-provision net revenue increased $8.6 million to $85.4 million. The return on average tangible assets increased one basis point to 1.29%, and the return on average tangible common equity was 12.44%, compared to 13.77%.
Fully taxable equivalent net interest income increased $6.9 million to $177.9 million. The fully taxable equivalent net interest margin widened 17 basis points to 3.94%, driven by a 21 basis point decrease in the cost of funds, partially offset by a three basis point decrease in earning asset yields.
Loans outstanding totaled $7.5 billion as of June 30, 2025, compared to $7.7 billion. New loan fundings over the trailing twelve months totaled $1.4 billion, led by commercial fundings of $928.3 million.
The Company recorded $10.2 million of provision expense for credit losses, compared to $2.8 million in the same period prior year. Annualized net charge-offs totaled 0.43% of average total loans, compared to 0.11% net charge-offs in the same period prior year. Non-performing loans totaled 0.45% of total loans at June 30, 2025, compared to 0.34% in the prior year. Non-performing assets totaled 0.45% of total loans and OREO at June 30, 2025, compared to 0.36% in the prior year. The allowance for credit losses as a percentage of loans totaled 1.19% at June 30, 2025, compared to 1.25% at June 30, 2024.
Average deposits totaled $8.2 billion, compared to $8.3 billion in the same period prior year, and average transaction deposits totaled $7.2 billion, compared to $7.3 billion in the same period prior year. The mix of transaction deposits to total deposits was 87.0% at June 30, 2025, compared to 87.8%.
Non-interest income increased $0.7 million to $32.4 million primarily due to a $0.7 million increase in the gains on sales of previously consolidated banking center properties and a $0.4 million increase in trust income.
Non-interest expense decreased $1.0 million to $124.9 million as a result of disciplined expense management and payroll tax credits realized during the first quarter 2025.
Income tax expense totaled $13.1 million, consistent with the same period prior year. The effective tax rate was 18.4%, compared to 18.6% in the same period prior year.
Conference CallManagement will host a conference call to review the results at 11:00 a.m. Eastern Time on Wednesday, July 23, 2025. Interested parties may listen to this call by dialing (877) 400-0505 using the participant passcode of 9935135 and asking for the NBHC Q2 2025 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 CorporationNational 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 85 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 MeasuresCertain 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 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 differences 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 StatementsThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements do not discuss historical facts but instead relate to expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance. Forward-looking statements are generally identified by words such as "anticipate," "believe," "can," "would," "should," "could," "may," "predict," "seek," "potential," "will," "estimate," "target," "plan," "project," "continuing," "ongoing," "expect," "intend," "goal," "focus," "maintains," "future," "ultimately," "likely," "ensure," "strategy," "objective," and similar words or phrases. These statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties. We have based these statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, liquidity, results of operations, business strategy and growth prospects. 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 and, therefore, you are cautioned not to place undue reliance on such statements. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to: business and economic conditions along with external events both generally and in the financial services industry; susceptibility to credit risk and fluctuations in the value of real estate and other collateral securing a significant portion of our loan portfolio, including with regards to real estate acquired through foreclosure, and the accuracy of appraisals related to such real estate; the allowance for credit losses and fair value adjustments may be insufficient to absorb losses in our loan portfolio; our ability to maintain sufficient liquidity to meet the requirements of deposit withdrawals and other business needs; changes impacting monetary supply and the businesses of our clients and counterparties, including levels of market interest rates, inflation, currency values, monetary and fiscal policies, and the volatility of trading markets; changes in the fair value of our investment securities and the ability of companies in which we invest to commercialize their technology or product concepts; the loss of certain executive officers and key personnel; any service interruptions, cyber incidents or other breaches relating to our technology systems, security systems or infrastructure or those of our third-party providers; the occurrence of fraud or other financial crimes within our business; competition from other financial institutions and financial services providers and the effects of disintermediation within the banking business including consolidation within the industry; changes to federal government lending programs like the Small Business Administration's Preferred Lender Program and the Federal Housing Administration's insurance programs, including the impact of a government shutdown of such programs; impairment of our mortgage servicing rights, disruption in the secondary market for mortgage loans, declines in real estate values, or being required to repurchase mortgage loans or reimburse investors; developments in technology, such as artificial intelligence, the success of our digital growth strategy, and our ability to incorporate innovative technologies in our business and provide products and services that satisfy our clients' expectations for convenience and security; our ability to execute our organic growth and acquisition strategies; the accuracy of projected operating results for assets and businesses we acquire as well as our ability to drive organic loan growth to replace loans in our existing portfolio with comparable loans as loans are paid down; changes to federal, state and local laws and regulations along with executive orders applicable to our business, including tax laws; our ability to comply with and manage costs related to extensive government regulation and supervision, including current and future regulations affecting bank holding companies and depository institutions; the application of any increased assessment rates imposed by the Federal Deposit Insurance Corporation ("FDIC"); claims or legal action brought against us by third parties or government agencies; and other factors, risks, trends and uncertainties described elsewhere in our other filings with the Securities and Exchange Commission (the "SEC"). The forward-looking statements are made as of the date of this press release, and we undertake 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, Van Denabeele, Chief Financial Officer, (720) 529-3370,
Media:Jody Soper, Chief Marketing Officer, (303) 784-5925,
NATIONAL BANK HOLDINGS CORPORATIONFINANCIAL SUMMARYConsolidated Statements of Operations (Unaudited)(Dollars in thousands, except share and per share data)
For the three months ended
For the six months ended
June 30,
March 31,
June 30,
June 30,
June 30,
2025
2025
2024
2025
2024
Total interest and dividend income
$
131,220
$
129,963
$
132,447
$
261,183
$
264,179
Total interest expense
43,811
43,272
48,873
87,083
96,575
Net interest income
87,409
86,691
83,574
174,100
167,604
Taxable equivalent adjustment
1,912
1,910
1,711
3,822
3,403
Net interest income FTE(1)
89,321
88,601
85,285
177,922
171,007
Provision expense for credit losses
—
10,200
2,776
10,200
2,776
Net interest income after provision for credit losses FTE(1)
89,321
78,401
82,509
167,722
168,231
Non-interest income:
Service charges
4,127
4,118
4,295
8,245
8,686
Bank card fees
4,732
4,194
4,882
8,926
9,460
Mortgage banking income
2,547
3,315
3,296
5,862
5,951
Other non-interest income
5,660
3,749
1,556
9,409
7,626
Total non-interest income
17,066
15,376
14,029
32,442
31,723
Non-interest expense:
Salaries and benefits
37,746
34,362
36,933
72,108
73,453
Occupancy and equipment
9,436
10,837
10,120
20,273
20,061
Professional fees
1,680
1,423
1,706
3,103
3,352
Data processing
4,452
4,401
4,117
8,853
8,183
Other non-interest expense
7,670
9,017
8,222
16,687
16,875
Other intangible assets amortization
1,947
1,977
1,977
3,924
3,985
Total non-interest expense
62,931
62,017
63,075
124,948
125,909
Income before income taxes FTE(1)
43,456
31,760
33,463
75,216
74,045
Taxable equivalent adjustment
1,912
1,910
1,711
3,822
3,403
Income before income taxes
41,544
29,850
31,752
71,394
70,642
Income tax expense
7,522
5,619
5,617
13,141
13,116
Net income
$
34,022
$
24,231
$
26,135
$
58,253
$
57,526
Earnings per share - basic
$
0.89
$
0.63
$
0.68
$
1.52
$
1.51
Earnings per share - diluted
0.88
0.63
0.68
1.51
1.50
Common stock dividend
0.30
0.29
0.28
0.59
0.55
(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 CORPORATIONConsolidated Statements of Financial Condition (Unaudited)(Dollars in thousands, except share and per share data)
June 30, 2025
March 31, 2025
December 31, 2024
June 30, 2024
ASSETS
Cash and cash equivalents
$
296,483
$
246,298
$
127,848
$
144,993
Investment securities available-for-sale
631,947
634,376
527,547
691,076
Investment securities held-to-maturity
717,232
706,912
533,108
554,686
Non-marketable securities
81,124
76,203
76,462
72,987
Loans
7,486,918
7,646,296
7,751,143
7,722,153
Allowance for credit losses
(88,893
)
(90,192
)
(94,455
)
(96,457
)
Loans, net
7,398,025
7,556,104
7,656,688
7,625,696
Loans held for sale
20,784
11,885
24,495
18,787
Other real estate owned
291
615
662
1,526
Premises and equipment, net
209,414
204,567
196,773
177,456
Goodwill
306,043
306,043
306,043
306,043
Intangible assets, net
52,496
54,489
58,432
62,356
Other assets
284,890
301,378
299,635
315,245
Total assets
$
9,998,729
$
10,098,870
$
9,807,693
$
9,970,851
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Non-interest bearing demand deposits
$
2,168,574
$
2,215,313
$
2,213,685
$
2,229,432
Interest bearing demand deposits
1,240,698
1,337,905
1,411,860
1,420,942
Savings and money market
3,785,951
3,812,312
3,592,312
3,703,810
Total transaction deposits
7,195,223
7,365,530
7,217,857
7,354,184
Time deposits
1,074,261
1,058,677
1,020,036
1,022,741
Total deposits
8,269,484
8,424,207
8,237,893
8,376,925
Securities sold under agreements to repurchase
18,513
20,749
18,895
19,465
Long-term debt
54,385
54,588
54,511
54,356
Federal Home Loan Bank advances
185,000
80,000
50,000
35,000
Other liabilities
118,851
190,018
141,319
237,461
Total liabilities
8,646,233
8,769,562
8,502,618
8,723,207
Shareholders' equity:
Common stock
515
515
515
515
Additional paid in capital
1,167,719
1,168,433
1,167,431
1,161,804
Retained earnings
544,428
521,939
508,864
469,630
Treasury stock
(304,254
)
(301,531
)
(301,694
)
(303,880
)
Accumulated other comprehensive loss, net of tax
(55,912
)
(60,048
)
(70,041
)
(80,425
)
Total shareholders' equity
1,352,496
1,329,308
1,305,075
1,247,644
Total liabilities and shareholders' equity
$
9,998,729
$
10,098,870
$
9,807,693
$
9,970,851
SHARE DATA
Average basic shares outstanding
38,075,896
38,068,455
38,327,964
38,210,869
Average diluted shares outstanding
38,151,810
38,229,869
38,565,164
38,372,777
Ending shares outstanding
38,045,622
38,094,105
38,054,482
37,899,453
Common book value per share
$
35.55
$
34.90
$
34.29
$
32.92
Tangible common book value per share(1)(non-GAAP)
26.64
25.94
25.28
23.74
CAPITAL RATIOS
Average equity to average assets
13.62
%
13.35
%
13.10
%
12.57
%
Tangible common equity to tangible assets(1)
10.49
%
10.13
%
10.16
%
9.35
%
Tier 1 leverage ratio
11.18
%
10.89
%
10.69
%
10.20
%
Common equity tier 1 risk-based capital ratio
14.17
%
13.61
%
13.20
%
12.41
%
Tier 1 risk-based capital ratio
14.17
%
13.61
%
13.20
%
12.41
%
Total risk-based capital ratio
16.07
%
15.49
%
15.11
%
14.32
%
(1
)
Represents a non-GAAP financial measure. See non-GAAP reconciliations below.
NATIONAL BANK HOLDINGS CORPORATIONLoan Portfolio (Dollars in thousands)
Period End Loan Balances by Type
June 30, 2025
June 30, 2025
vs. March 31, 2025
vs. June 30, 2024
