National Bank Holdings Corporation (NYSE: NBHC) reported:
|
|
For the quarter |
|
For the quarter - adjusted(1) |
|
For the year |
|
For the year - adjusted (1) |
|
|
4Q22 |
|
3Q22 |
|
4Q21 |
|
4Q22 |
|
3Q22 |
|
4Q21 |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net income ($000's) |
|
$ |
16,721 |
|
|
$ |
15,839 |
|
|
$ |
22,769 |
|
|
$ |
34,546 |
|
|
$ |
25,349 |
|
|
$ |
22,769 |
|
|
$ |
71,274 |
|
|
$ |
93,606 |
|
|
$ |
99,577 |
|
|
$ |
93,606 |
|
Earnings per share -
diluted |
|
$ |
0.44 |
|
|
$ |
0.50 |
|
|
$ |
0.74 |
|
|
$ |
0.91 |
|
|
$ |
0.80 |
|
|
$ |
0.74 |
|
|
$ |
2.18 |
|
|
$ |
3.01 |
|
|
$ |
3.05 |
|
|
$ |
3.01 |
|
Return on average tangible
assets(2) |
|
|
0.77% |
|
|
|
0.87% |
|
|
|
1.30% |
|
|
|
1.55% |
|
|
|
1.39% |
|
|
|
1.30% |
|
|
|
0.95% |
|
|
|
1.37% |
|
|
|
1.32% |
|
|
|
1.37% |
|
Return on average tangible
common equity(2) |
|
|
9.17% |
|
|
|
8.66% |
|
|
|
12.37% |
|
|
|
18.37% |
|
|
|
13.76% |
|
|
|
12.37% |
|
|
|
9.91% |
|
|
|
12.87% |
|
|
|
13.75% |
|
|
|
12.87% |
|
(1) |
|
See non-GAAP reconciliations below. |
(2) |
|
Quarterly ratios are annualized. |
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|
|
In announcing these results, Chief Executive
Officer Tim Laney shared, “We are pleased to deliver solid
quarterly earnings of $0.91 per diluted share and a record return
on average tangible common equity of 18.37%, adjusted for one-time
acquisition-related expenses. We generated organic loan growth of
21.5% annualized, fueled by strong loan fundings, while maintaining
strong credit quality with annual net charge-offs of just three
basis points, and a low non-performing loans ratio of 0.23%. We
believe our strong capital and our fortress balance sheet positions
us to perform in any economic environment.”
Mr. Laney added, “I am proud of our teams’
accomplishments this year that led to delivering a record return on
tangible common equity while simultaneously closing and integrating
two strategically important banking enterprises. We have added
great teammates in Utah, Wyoming and Idaho to the NBH family and
remain very focused on delivering best-in-class banking solutions
for our clients. We are well positioned to continue to serve our
clients and communities in 2023.”
Fourth Quarter 2022
Results(All comparisons refer to the third quarter
of 2022, except as noted)
Net income totaled $16.7 million or $0.44 per
diluted share, compared to $15.8 million or $0.50 per diluted share
during the third quarter of 2022. The quarter’s results were driven
by record net interest income and was impacted by non-recurring
acquisition-related expenses of $23.2 million, including $16.3
million of CECL Day 1 provision expense, discussed in detail below.
Fully taxable equivalent pre-provision net revenue increased $9.1
million to $43.0 million during the fourth quarter. The return on
average tangible assets was 0.77% compared to 0.87% during the
third quarter, and the return on average tangible common equity was
9.17% compared to 8.66%.
Adjusting for acquisition-related provision
expense and non-recurring acquisition-related expenses of $23.2
million and $12.4 million during the fourth and third quarters
respectively, adjusted net income totaled $34.5 million or $0.91
per diluted share compared to $25.3 million or $0.80 per diluted
share. Adjusted fully taxable equivalent pre-provision net revenue
increased $8.9 million to $49.8 million. The adjusted return on
average tangible assets was 1.55% compared to 1.39%, and the
adjusted return on average tangible common equity was 18.37%
compared to 13.76%.
Net Interest IncomeFully
taxable equivalent net interest income totaled a record $96.5
million during the fourth quarter of 2022, an increase of $26.0
million, or 146.4% annualized. The fully taxable equivalent net
interest margin widened 38 basis points to 4.39%, and average
earning assets increased $1.7 billion. The increase in average
earning assets was primarily due to increases in average acquired
loans of $1.5 billion and increases in average originated loans of
$435.0 million. The margin expansion was driven by a 60 basis point
increase in earning asset yields, as a result of several increases
in the federal funds rate since September 2022, and excess cash
being deployed into higher-yielding originated loans. The cost of
funds totaled 0.43%, compared to 0.20% during the third
quarter.
LoansTotal loans increased $1.5
billion to a record $7.2 billion at December 31, 2022 and included
$1.2 billion of loans acquired through the Bank of Jackson Hole
acquisition. Excluding the newly acquired Bank of Jackson Hole
loans, loans increased $310.0 million or 21.5% annualized led by
originated commercial loan growth of $151.1 million. We generated
quarterly loan fundings totaling $497.3 million, led by commercial
loan fundings of $267.5 million.
Asset Quality and Provision for Credit
LossesThe Company recorded $21.9 million of provision
expense, compared to $12.7 million last quarter. The quarter’s
provision included $16.3 million of Day 1 allowance reserve funding
for the Bank of Jackson Hole loan portfolio compared to $5.4
million of Day 1 allowance reserve funding for the Rock Canyon Bank
loan portfolio during the third quarter. The remainder of the
quarter’s provision expense was driven by strong loan growth and
higher reserve requirements from changes in the CECL model’s
underlying macro-economic forecast. Annualized net charge-offs
totaled 0.04% of total loans, compared to 0.01% during the third
quarter. Non-performing loans (comprised of non-accrual loans and
non-accrual TDRs) decreased three basis points to 0.23% of total
loans, and non-performing assets decreased four basis points to
0.28% of total loans and OREO. The allowance for credit losses as a
percentage of loans totaled 1.24%, compared to 1.15% at September
30, 2022.
DepositsAverage total deposits
increased $1.6 billion or 96.8% annualized to $8.0 billion for the
fourth quarter 2022. Average transaction deposits (defined as total
deposits less time deposits) increased $1.5 billion or 104.1%
annualized, and average non-interest bearing demand deposits
increased $585.0 million or 90.8% annualized.
The Bank of Jackson Hole acquisition added $1.4
billion of total deposits, including $1.3 billion of transaction
deposits and $0.1 billion of time deposits on October 1, 2022. The
mix of transaction deposits to total deposits increased 124 basis
points to 88.9% at December 31, 2022. The loan to deposit ratio
totaled 91.7% at December 31, 2022.
Non-Interest IncomeNon-interest
income totaled $14.1 million, a decrease of $3.2 million largely
driven by $1.8 million lower mortgage banking income due to lower
mortgage activity. Other non-interest income decreased $1.0 million
due to unrealized gains on equity method investments included in
the prior quarter. These decreases were partially offset by a $0.3
million increase in service charges and bank card fees. Included in
the prior quarter was $0.8 million of banking center
consolidation-related income.
Non-Interest
ExpenseNon-interest expense totaled $67.7 million, an
increase of $13.7 million from the prior quarter. Included in the
fourth quarter were $6.8 million of non-recurring
acquisition-related expenses with $2.5 million included in
professional fees, $1.5 million included in data processing, $1.1
million included in occupancy and equipment, $0.8 million included
in salaries and benefits and $0.9 million included in other
non-interest expense. Included in the third quarter were $7.0
million of non-recurring acquisition-related expenses with $4.6
million included in professional fees, $0.8 million included in
salaries and benefits, $0.6 million in data processing, $0.5
million included in occupancy and equipment and $0.5 million
included in other non-interest expense. Excluding the impact of
non-recurring acquisition-related expenses in both quarters,
non-interest expense increased $13.9 million largely driven by an
increase in core operating expenses driven by the growth of our
recent acquisitions.
The fully taxable equivalent efficiency ratio
was 61.1% at December 31, 2022, compared to 61.4% at September 30,
2022. Adjusting for non-recurring acquisition-related expenses, the
fully taxable equivalent efficiency ratio was 53.8% compared to
53.0% during the third quarter.
Income tax expense totaled $3.0 million during
the fourth quarter compared to $4.0 million. The effective tax rate
was 15.0% and 20.1% for the fourth and third quarters,
respectively.
CapitalCapital ratios continue
to be strong and in excess of federal bank regulatory agency “well
capitalized” thresholds. The Tier 1 leverage ratio at December 31,
2022 for the consolidated company was 9.29%. Shareholders’ equity
totaled $1.1 billion at December 31, 2022 increasing $172.8 million
primarily due to the issuance of stock for the Bank of Jackson Hole
acquisition. Retained earnings, net of dividends paid, increased
$7.3 million, and accumulated other comprehensive loss decreased
$1.1 million due to fair market value fluctuations in the
available-for-sale investment securities portfolio.
Common book value per share increased $1.34 to
$29.04 at December 31, 2022. Tangible common book value per share
decreased $1.77 to $20.63 at December 31, 2022 due to the impact of
the Bank of Jackson Hole acquisition. Excluding accumulated other
comprehensive loss, the tangible book value totaled $22.98,
compared to $25.10 at September 30, 2022.
Year-Over-Year
Review(All comparisons refer to the full year
2021, except as noted)
Net income totaled $71.3 million or $2.18 per
diluted share, compared to $93.6 million or $3.01 per diluted share
over the prior year. Adjusting for acquisition-related provision
expense and non-recurring acquisition-related expenses of $36.8
million during 2022, adjusted net income totaled $99.6 million or
$3.05 per diluted share. Fully taxable equivalent pre-provision net
revenue increased $17.6 million to $128.4 million and the adjusted
fully taxable equivalent pre-provision net revenue increased $32.7
million to $143.5 million. The return on average tangible assets
was 0.95% compared to 1.37% in the prior year, and the return on
average tangible common equity was 9.91% compared to 12.87%. The
adjusted return on average tangible assets was 1.32%, and the
adjusted return on average tangible common equity was 13.75%.
Fully taxable equivalent net interest income
totaled $272.3 million, an increase of $80.0 million or 41.6%.
Average earning assets increased $787.5 million, or 12.1%,
including average originated loan growth of $638.0 million and
average acquired loan growth $392.0 million. The fully taxable
equivalent net interest margin widened 78 basis points to 3.73%,
benefitting from an 81 basis point increase in earning asset yields
to 3.97%. The cost of funds totaled 0.26%, compared to 0.23% during
2021.
Loans outstanding totaled a record $7.2 billion,
increasing $2.7 billion or 60.0%, and included $1.7 billion of
loans acquired through the Rock Canyon Bank and Bank of Jackson
Hole acquisitions. Excluding the newly acquired loans, loans
increased $980.9 million or 21.7% led by originated commercial loan
growth of $629.0 million. New loan fundings during 2022 totaled
$2.0 billion, led by commercial loan fundings of $1.2
billion.
The Company recorded $36.7 million of provision
expense for credit loss during 2022, compared to a provision
release of $9.3 million in the prior year. Provision expense in
2022 included $21.7 million of Day 1 allowance reserve funding for
the Rock Canyon Bank and Bank of Jackson Hole loan portfolios. The
remainder of the provision expense was driven by strong loan growth
and higher reserve requirements from changes in the CECL model’s
underlying macro-economic forecast. Annualized net charge-offs
remained consistent at 0.03% of total loans. Non-performing loans
to total loans improved one basis point to 0.23% at December 31,
2022, and non-performing assets to total loans and OREO improved 11
basis points to 0.28%. The allowance for credit losses totaled
1.24% of total loans, compared to 1.10% at December 31, 2021.
Average total deposits increased $672.6 million
or 11.1% to $6.7 billion. Average transaction deposits increased
$761.1 million or 14.8%, and average non-interest bearing demand
deposits increased $297.4 million or 12.6%. The mix of transaction
deposits to total deposits increased by 230 basis points to 88.9%
at December 31, 2022, and the mix of non-interest bearing demand
deposits to total deposits totaled 39.8% compared to 40.2% at
December 31, 2021.
Non-interest income totaled $67.3 million, a
decrease of $43.1 million or 39.0%, largely driven by $39.6 million
of lower mortgage banking income due to lower refinance activity in
2022, as well as competition driving tighter gain on sale margins.
Service charges and bank card fees increased a combined $2.1
million in 2022. Other non-interest income decreased $2.4 million
largely due to market adjustments on company-owned life insurance
and higher unrealized gains on equity method investments included
in the prior year. 2021 included $3.1 million of non-recurring
banking center consolidation-related income.
Non-interest expense totaled $211.2 million, an
increase of $19.4 million or 10.1%. Included in 2022 were $15.1
million of non-recurring acquisition-related expenses, with $8.2
million included in professional fees, $1.7 million included in
salaries and benefits, $2.1 million included in data processing,
$1.6 million included in occupancy and equipment and $1.5 million
included in other non-interest expense. Compared to 2021, our
on-going operating expenses increased driven by growth from our
recent acquisitions. Excluding non-recurring acquisition-related
expenses, occupancy and equipment increased $4.6 million, data
processing increased $1.2 million, core deposit intangible and
wealth management assets amortization increased $1.2 million,
professional fees increased $0.8 million and other non-interest
expense increased $4.3 million. Partially offsetting these
increases was a $4.2 million decrease in salaries and benefits as
the decrease in mortgage banking-related compensation more than
offset additional expense for the Rock Canyon Bank and Bank of
Jackson Hole associates. 2022 included $4.3 million for our
continued investment in our digital platform 2UniFi and 2021
included banking center consolidation-related expense of $1.6
million.
Income tax expense totaled $14.9 million, a
decrease of $6.5 million, driven by 2022’s lower pre-tax income due
to acquisition-related expenses. Included in income tax expense was
$0.3 million and $0.6 million of tax benefit from stock
compensation activity during 2022 and 2021, respectively. Adjusting
for stock compensation activity, the effective tax rate was 17.6%
for 2022, compared to 19.1% for 2021. The lower rate compared to
the statutory rate reflects the continued success of our tax
strategies and tax-exempt income.
Conference CallManagement will
host a conference call to review the results at 11:00 a.m. Eastern
Time on Wednesday, January 25, 2023. Interested parties may listen
to this call by dialing (888) 204-4368 using the participant
passcode of 5871977 and asking for the NBHC Q4 2022 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 95 banking centers, serving individual
consumers, small, medium and large businesses, and government and
non-profit entities. Its banking centers are located in its core
footprint of Colorado, the greater Kansas City region, Utah,
Wyoming, Texas, New Mexico and Idaho. Its comprehensive residential
mortgage banking group primarily serves the bank’s core footprint.
Its trust business is operated in its core footprint under the Bank
of Jackson Hole Trust charter. NBH Bank operates under a single
state charter through the following brand names as divisions of NBH
Bank: in Colorado, Community Banks of Colorado and Community Banks
Mortgage; in Kansas and Missouri, Bank Midwest and Bank Midwest
Mortgage; in 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 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 adjusted for CDI
and WMI asset amortization and acquisition-related expenses,”
“non-interest expense adjusted for acquisition-related expenses,”
“efficiency ratio adjusted for CDI and WMI amortization and
acquisition-related expenses,” “adjusted net income,” “adjusted
earnings per share – diluted,” “net income adjusted for the impact
of CDI and WMI amortization expense and acquisition-related
expenses, after tax,” “net income excluding the impact of CDI and
WMI amortization expense, after tax,” “adjusted return on average
tangible assets,” “adjusted return on average tangible common
equity,” “pre-provision net revenue,” “pre-provision net revenue
adjusted for acquisition-related expenses,” and “fully taxable
equivalent” metrics, are supplemental measures that are not
required by, or are not presented in accordance with, U.S.
generally accepted accounting principles (GAAP). We refer to these
financial measures and ratios as “non-GAAP financial measures.” We
consider the use of select non-GAAP financial measures and ratios
to be useful for financial and operational decision making and
useful in evaluating period-to-period comparisons. We believe that
these non-GAAP financial measures provide meaningful supplemental
information regarding our performance by excluding certain
expenditures or assets that we believe are not indicative of our
primary business operating results or by presenting certain metrics
on a fully taxable equivalent basis. We believe that management and
investors benefit from referring to these non-GAAP financial
measures in assessing our performance and when planning,
forecasting, analyzing and comparing past, present and future
periods.
These non-GAAP financial measures should not be
considered a substitute for financial information presented in
accordance with GAAP and you should not rely on non-GAAP financial
measures alone as measures of our performance. The non-GAAP
financial measures we present may differ from non-GAAP financial
measures used by our peers or other companies. We compensate for
these limitations by providing the equivalent GAAP measures
whenever we present the non-GAAP financial measures and by
including a reconciliation of the impact of the components adjusted
for in the non-GAAP financial measure so that both measures and the
individual components may be considered when analyzing our
performance.
A reconciliation of non-GAAP financial measures
to the comparable GAAP financial measures is included at the end of
the financial statement tables.
Forward-Looking StatementsThis
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: difficulties in integrating the NBHC,
Community Bancorporation, and Bancshares of Jackson Hole
Incorporated businesses or fully realizing cost savings and other
benefits; business disruption following the mergers; ability to
execute our business strategy; 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; 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 of 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; 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; technological changes;
the timely development and acceptance of new products and services,
including in the digital technology space our digital solution
2UniFi; 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 credit 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; a
cybersecurity incident, data breach or a failure of a key
information technology system; 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:Analysts/Institutional
Investors: Aldis Birkans, Chief Financial Officer, (720) 554-6640,
ir@nationalbankholdings.com Media: Jody Soper, Chief Marketing
Officer, (303) 784-5925, Jody.Soper@nbhbank.com
|
NATIONAL
BANK HOLDINGS CORPORATIONFINANCIAL
SUMMARYConsolidated Statements of Operations
(Unaudited)(Dollars in thousands, except share and per
share data) |
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For the three months ended |
|
For the years ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
2022 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Total interest and dividend income |
$ |
103,958 |
|
|
$ |
72,369 |
|
|
$ |
52,501 |
|
|
$ |
284,688 |
|
|
$ |
200,965 |
|
Total interest expense |
|
8,892 |
|
|
|
3,278 |
|
|
|
3,015 |
|
|
|
17,853 |
|
|
|
13,821 |
|
Net interest income |
|
95,066 |
|
|
|
69,091 |
|
|
|
49,486 |
|
|
|
266,835 |
|
|
|
187,144 |
|
Taxable equivalent
adjustment |
|
1,454 |
|
|
|
1,409 |
|
|
|
1,299 |
|
|
|
5,512 |
|
|
|
5,161 |
|
Net interest income FTE(1) |
|
96,520 |
|
|
|
70,500 |
|
|
|
50,785 |
|
|
|
272,347 |
|
|
|
192,305 |
|
Provision expense (release)
for credit losses |
|
21,869 |
|
|
|
12,678 |
|
|
|
132 |
|
|
|
36,729 |
|
|
|
(9,293 |
) |
Net interest income after provision for credit losses FTE(1) |
|
74,651 |
|
|
|
57,822 |
|
|
|
50,653 |
|
|
|
235,618 |
|
|
|
201,598 |
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges |
|
4,365 |
|
|
|
4,326 |
|
|
|
3,905 |
|
|
|
16,357 |
|
|
|
14,894 |
|
Bank card fees |
|
4,954 |
|
|
|
4,681 |
|
|
|
4,476 |
|
|
|
18,299 |
|
|
|
17,693 |
|
Mortgage banking income |
|
2,686 |
|
|
|
4,474 |
|
|
|
10,387 |
|
|
|
23,774 |
|
|
|
63,360 |
|
Other non-interest income |
|
2,132 |
|
|
|
3,100 |
|
|
|
3,388 |
|
|
|
7,331 |
|
|
|
9,752 |
|
OREO-related income |
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
|
7 |
|
|
|
35 |
|
Banking center consolidation-related income |
|
— |
|
|
|
776 |
|
|
|
1,059 |
|
|
|
1,544 |
|
|
|
4,630 |
|
Total non-interest income |
|
14,138 |
|
|
|
17,358 |
|
|
|
23,215 |
|
|
|
67,312 |
|
|
|
110,364 |
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
36,319 |
|
|
|
30,540 |
|
|
|
29,986 |
|
|
|
124,971 |
|
|
|
127,504 |
|
Occupancy and equipment |
|
10,409 |
|
|
|
8,026 |
|
|
|
6,133 |
|
|
|
31,496 |
|
|
|
25,283 |
|
Professional fees |
|
6,308 |
|
|
|
5,810 |
|
|
|
781 |
|
|
|
14,418 |
|
|
|
5,423 |
|
Data processing |
|
4,924 |
|
|
|
2,899 |
|
|
|
2,376 |
|
|
|
12,657 |
|
|
|
9,310 |
|
Other non-interest expense |
|
8,613 |
|
|
|
6,443 |
|
|
|
5,388 |
|
|
|
25,754 |
|
|
|
19,950 |
|
Problem asset workout |
|
(274 |
) |
|
|
215 |
|
|
|
212 |
|
|
|
248 |
|
|
|
2,063 |
|
Gain on sale of OREO, net |
|
— |
|
|
|
(378 |
) |
|
|
(667 |
) |
|
|
(648 |
) |
|
|
(475 |
) |
Core deposit and wealth management intangible assets
amortization |
|
1,363 |
|
|
|
383 |
|
|
|
296 |
|
|
|
2,338 |
|
|
|
1,183 |
|
Banking center consolidation-related expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,589 |
|
Total non-interest expense |
|
67,662 |
|
|
|
53,938 |
|
|
|
44,505 |
|
|
|
211,234 |
|
|
|
191,830 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
FTE(1) |
|
21,127 |
|
|
|
21,242 |
|
|
|
29,363 |
|
|
|
91,696 |
|
|
|
120,132 |
|
Taxable equivalent
adjustment |
|
1,454 |
|
|
|
1,409 |
|
|
|
1,299 |
|
|
|
5,512 |
|
|
|
5,161 |
|
Income before income
taxes |
|
19,673 |
|
|
|
19,833 |
|
|
|
28,064 |
|
|
|
86,184 |
|
|
|
114,971 |
|
Income tax expense |
|
2,952 |
|
|
|
3,994 |
|
|
|
5,295 |
|
|
|
14,910 |
|
|
|
21,365 |
|
Net income |
$ |
16,721 |
|
|
$ |
15,839 |
|
|
$ |
22,769 |
|
|
$ |
71,274 |
|
|
$ |
93,606 |
|
Earnings per share -
basic |
$ |
0.44 |
|
|
$ |
0.51 |
|
|
$ |
0.75 |
|
|
$ |
2.20 |
|
|
$ |
3.04 |
|
Earnings per share -
diluted |
|
0.44 |
|
|
|
0.50 |
|
|
|
0.74 |
|
|
|
2.18 |
|
|
|
3.01 |
|
(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) |
|
|
|
|
|
|
|
|
|
|
December 31, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
ASSETS |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
195,505 |
|
|
$ |
256,207 |
|
|
$ |
845,695 |
|
Investment securities available-for-sale |
|
706,289 |
|
|
|
730,791 |
|
|
|
691,847 |
|
Investment securities held-to-maturity |
|
651,527 |
|
|
|
606,245 |
|
|
|
609,012 |
|
Non-marketable securities |
|
89,049 |
|
|
|
64,004 |
|
|
|
50,740 |
|
Loans |
|
7,220,469 |
|
|
|
5,721,985 |
|
|
|
4,513,383 |
|
Allowance for credit losses |
|
(89,553 |
) |
|
|
(65,623 |
) |
|
|
(49,694 |
) |
Loans, net |
|
7,130,916 |
|
|
|
5,656,362 |
|
|
|
4,463,689 |
|
Loans held for sale |
|
22,767 |
|
|
|
33,043 |
|
|
|
139,142 |
|
Other real estate owned |
|
3,731 |
|
|
|
3,695 |
|
|
|
7,005 |
|
Premises and equipment, net |
|
136,111 |
|
|
|
105,801 |
|
|
|
96,747 |
|
Goodwill |
|
279,132 |
|
|
|
167,882 |
|
|
|
115,027 |
|
Intangible assets, net |
|
59,887 |
|
|
|
30,843 |
|
|
|
12,322 |
|
Other assets |
|
298,329 |
|
|
|
268,048 |
|
|
|
182,785 |
|
Total assets |
$ |
9,573,243 |
|
|
$ |
7,922,921 |
|
|
$ |
7,214,011 |
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
Non-interest bearing demand deposits |
$ |
3,134,716 |
|
|
$ |
2,735,832 |
|
|
$ |
2,506,265 |
|
Interest bearing demand deposits |
|
913,852 |
|
|
|
597,035 |
|
|
|
555,401 |
|
Savings and money market |
|
2,950,658 |
|
|
|
2,631,855 |
|
|
|
2,332,591 |
|
Total transaction deposits |
|
6,999,226 |
|
|
|
5,964,722 |
|
|
|
5,394,257 |
|
Time deposits |
|
873,400 |
|
|
|
838,830 |
|
|
|
833,916 |
|
Total deposits |
|
7,872,626 |
|
|
|
6,803,552 |
|
|
|
6,228,173 |
|
Securities sold under agreements to repurchase |
|
20,214 |
|
|
|
20,044 |
|
|
|
22,768 |
|
Long-term debt |
|
53,890 |
|
|
|
39,559 |
|
|
|
39,478 |
|
Federal Home Loan Bank advances |
|
385,000 |
|
|
|
— |
|
|
|
— |
|
Other liabilities |
|
149,311 |
|
|
|
140,340 |
|
|
|
83,486 |
|
Total liabilities |
|
8,481,041 |
|
|
|
7,003,495 |
|
|
|
6,373,905 |
|
Shareholders' equity: |
|
|
|
|
|
|
|
|
Common stock |
|
515 |
|
|
|
515 |
|
|
|
515 |
|
Additional paid in capital |
|
1,159,508 |
|
|
|
1,079,560 |
|
|
|
1,014,294 |
|
Retained earnings |
|
330,721 |
|
|
|
323,448 |
|
|
|
289,876 |
|
Treasury stock |
|
(310,338 |
) |
|
|
(394,758 |
) |
|
|
(457,616 |
) |
Accumulated other comprehensive loss, net of tax |
|
(88,204 |
) |
|
|
(89,339 |
) |
|
|
(6,963 |
) |
Total shareholders' equity |
|
1,092,202 |
|
|
|
919,426 |
|
|
|
840,106 |
|
Total liabilities and shareholders' equity |
$ |
9,573,243 |
|
|
$ |
7,922,921 |
|
|
$ |
7,214,011 |
|
SHARE
DATA |
|
|
|
|
|
|
|
|
Average basic shares
outstanding |
|
37,762,853 |
|
|
|
31,259,188 |
|
|
|
30,338,265 |
|
Average diluted shares
outstanding |
|
38,100,155 |
|
|
|
31,531,075 |
|
|
|
30,715,500 |
|
Ending shares outstanding |
|
37,608,519 |
|
|
|
33,189,253 |
|
|
|
29,958,764 |
|
Common book value per
share |
$ |
29.04 |
|
|
$ |
27.70 |
|
|
$ |
28.04 |
|
Tangible common book value per
share(1)(non-GAAP) |
|
20.63 |
|
|
|
22.40 |
|
|
|
24.33 |
|
Tangible common book value per
share, excluding accumulated other comprehensive
income(1)(non-GAAP) |
|
22.98 |
|
|
|
25.10 |
|
|
|
24.56 |
|
CAPITAL
RATIOS |
|
|
|
|
|
|
|
|
Average equity to average
assets |
|
11.47% |
|
|
|
11.69% |
|
|
|
11.88% |
|
Tangible common equity to
tangible assets(1) |
|
8.38% |
|
|
|
9.60% |
|
|
|
10.26% |
|
Tier 1 leverage ratio |
|
9.29% |
|
|
|
10.45% |
|
|
|
10.39% |
|
Common equity tier 1
risk-based capital ratio |
|
10.54% |
|
|
|
12.75% |
|
|
|
14.26% |
|
Tier 1 risk-based capital
ratio |
|
10.54% |
|
|
|
12.75% |
|
|
|
14.26% |
|
Total risk-based capital
ratio |
|
12.29% |
|
|
|
14.34% |
|
|
|
15.92% |
|
(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
|
|
|
|
|
December 31, 2022 |
|
|
|
December 31, 2022 |
|
|
|
|
|
vs. September 30, 2022 |
|
|
|
vs. December 31, 2021 |
|
December 31, 2022 |
|
September 30, 2022 |
|
% Change |
|
December 31, 2021 |
|
% Change |
Originated: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
1,841,313 |
|
|
$ |
1,724,469 |
|
|
6.8% |
|
|
$ |
1,479,895 |
|
|
24.4% |
|
Municipal and non-profit |
|
959,305 |
|
|
|
968,539 |
|
|
(1.0)% |
|
|
|
928,705 |
|
|
3.3% |
|
Owner-occupied commercial real estate |
|
656,361 |
|
|
|
631,783 |
|
|
3.9% |
|
|
|
503,663 |
|
|
30.3% |
|
Food and agribusiness |
|
284,714 |
|
|
|
265,835 |
|
|
7.1% |
|
|
|
200,412 |
|
|
42.1% |
|
Total commercial |
|
3,741,693 |
|
|
|
3,590,626 |
|
|
4.2% |
|
|
|
3,112,675 |
|
|
20.2% |
|
Commercial real estate non-owner occupied |
|
841,657 |
|
|
|
731,293 |
|
|
15.1% |
|
|
|
611,765 |
|
|
37.6% |
|
Residential real estate |
|
827,030 |
|
|
|
750,669 |
|
|
10.2% |
|
|
|
616,135 |
|
|
34.2% |
|
Consumer |
|
16,986 |
|
|
|
17,027 |
|
|
(0.2)% |
|
|
|
17,336 |
|
|
(2.0)% |
|
Total originated |
|
5,427,366 |
|
|
|
5,089,615 |
|
|
6.6% |
|
|
|
4,357,911 |
|
|
24.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
183,522 |
|
|
|
82,324 |
|
|
>100% |
|
|
|
16,252 |
|
|
>100% |
|
Municipal and non-profit |
|
321 |
|
|
|
326 |
|
|
(1.5)% |
|
|
|
340 |
|
|
(5.6)% |
|
Owner-occupied commercial real estate |
|
256,979 |
|
|
|
176,385 |
|
|
45.7% |
|
|
|
29,973 |
|
|
>100% |
|
Food and agribusiness |
|
69,265 |
|
|
|
73,822 |
|
|
(6.2)% |
|
|
|
3,177 |
|
|
>100% |
|
Total commercial |
|
510,087 |
|
|
|
332,857 |
|
|
53.2% |
|
|
|
49,742 |
|
|
>100% |
|
Commercial real estate non-owner occupied |
|
854,393 |
|
|
|
219,109 |
|
|
>100% |
|
|
|
52,964 |
|
|
>100% |
|
Residential real estate |
|
424,251 |
|
|
|
79,477 |
|
|
>100% |
|
|
|
52,521 |
|
|
>100% |
|
Consumer |
|
4,372 |
|
|
|
927 |
|
|
>100% |
|
|
|
245 |
|
|
>100% |
|
Total acquired |
|
1,793,103 |
|
|
|
632,370 |
|
|
>100% |
|
|
|
155,472 |
|
|
>100% |
|
Total loans |
$ |
7,220,469 |
|
|
$ |
5,721,985 |
|
|
26.2% |
|
|
$ |
4,513,383 |
|
|
60.0% |
|
Loan Fundings(1)
|
Fourth quarter |
|
Third quarter |
|
Second quarter |
|
First quarter |
|
Fourth quarter |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|
2021 |
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
177,693 |
|
|
$ |
201,106 |
|
|
$ |
152,550 |
|
|
$ |
169,168 |
|
|
$ |
229,529 |
|
Municipal and non-profit |
|
20,393 |
|
|
|
20,845 |
|
|
|
81,428 |
|
|
|
49,906 |
|
|
|
101,450 |
|
Owner occupied commercial real estate |
|
40,912 |
|
|
|
65,125 |
|
|
|
78,905 |
|
|
|
67,597 |
|
|
|
28,914 |
|
Food and agribusiness |
|
28,518 |
|
|
|
76,293 |
|
|
|
(4,186 |
) |
|
|
18,620 |
|
|
|
11,016 |
|
Total commercial |
|
267,516 |
|
|
|
363,369 |
|
|
|
308,697 |
|
|
|
305,291 |
|
|
|
370,909 |
|
Commercial real estate
non-owner occupied |
|
133,271 |
|
|
|
166,739 |
|
|
|
88,612 |
|
|
|
63,416 |
|
|
|
46,128 |
|
Residential real estate |
|
95,067 |
|
|
|
99,951 |
|
|
|
93,220 |
|
|
|
49,040 |
|
|
|
55,873 |
|
Consumer |
|
1,396 |
|
|
|
1,505 |
|
|
|
1,989 |
|
|
|
1,904 |
|
|
|
2,524 |
|
Total |
$ |
497,250 |
|
|
$ |
631,564 |
|
|
$ |
492,518 |
|
|
$ |
419,651 |
|
|
$ |
475,434 |
|
(1) |
|
Loan fundings are defined as closed end funded loans and net
fundings under revolving lines of credit. Net fundings under
revolving lines of credit were $96,903, $124,834, $21,762, $66,430
and $138,777 for the periods noted in the table above,
respectively. |
|
|
|
|
NATIONAL
BANK HOLDINGS CORPORATIONSummary of Net Interest
Margin(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the three months ended |
|
For the three months ended |
|
|
December 31, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
|
|
Average |
|
|
|
|
Average |
|
Average |
|
|
|
|
Average |
|
Average |
|
|
|
|
Average |
|
|
balance |
|
Interest |
|
rate |
|
balance |
|
Interest |
|
rate |
|
balance |
|
Interest |
|
rate |
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated loans FTE(1)(2) |
|
$ |
5,269,227 |
|
|
$ |
70,536 |
|
|
5.31 |
% |
|
$ |
4,834,206 |
|
|
$ |
58,153 |
|
|
4.77 |
% |
|
$ |
4,296,318 |
|
|
$ |
43,066 |
|
|
3.98 |
% |
Acquired loans |
|
|
1,790,476 |
|
|
|
26,508 |
|
|
5.87 |
% |
|
|
295,893 |
|
|
|
6,581 |
|
|
8.82 |
% |
|
|
172,567 |
|
|
|
4,493 |
|
|
10.33 |
% |
Loans held for sale |
|
|
24,381 |
|
|
|
375 |
|
|
6.10 |
% |
|
|
39,532 |
|
|
|
551 |
|
|
5.53 |
% |
|
|
166,470 |
|
|
|
1,214 |
|
|
2.89 |
% |
Investment securities available-for-sale |
|
|
841,762 |
|
|
|
4,187 |
|
|
1.99 |
% |
|
|
865,875 |
|
|
|
4,247 |
|
|
1.96 |
% |
|
|
689,994 |
|
|
|
2,560 |
|
|
1.48 |
% |
Investment securities held-to-maturity |
|
|
661,992 |
|
|
|
2,818 |
|
|
1.70 |
% |
|
|
605,356 |
|
|
|
2,212 |
|
|
1.46 |
% |
|
|
637,250 |
|
|
|
1,994 |
|
|
1.25 |
% |
Other securities |
|
|
26,203 |
|
|
|
402 |
|
|
6.14 |
% |
|
|
14,909 |
|
|
|
212 |
|
|
5.69 |
% |
|
|
14,590 |
|
|
|
209 |
|
|
5.73 |
% |
Interest earning deposits |
|
|
115,441 |
|
|
|
586 |
|
|
2.01 |
% |
|
|
326,277 |
|
|
|
1,822 |
|
|
2.22 |
% |
|
|
678,729 |
|
|
|
264 |
|
|
0.15 |
% |
Total interest earning assets
FTE(2) |
|
$ |
8,729,482 |
|
|
$ |
105,412 |
|
|
4.79 |
% |
|
$ |
6,982,048 |
|
|
$ |
73,778 |
|
|
4.19 |
% |
|
$ |
6,655,918 |
|
|
$ |
53,800 |
|
|
3.21 |
% |
Cash and due from banks |
|
$ |
126,107 |
|
|
|
|
|
|
|
|
$ |
81,112 |
|
|
|
|
|
|
|
|
$ |
79,058 |
|
|
|
|
|
|
|
Other assets |
|
|
673,679 |
|
|
|
|
|
|
|
|
|
440,516 |
|
|
|
|
|
|
|
|
|
460,664 |
|
|
|
|
|
|
|
Allowance for credit
losses |
|
|
(85,638 |
) |
|
|
|
|
|
|
|
|
(54,610 |
) |
|
|
|
|
|
|
|
|
(49,069 |
) |
|
|
|
|
|
|
Total assets |
|
$ |
9,443,630 |
|
|
|
|
|
|
|
|
$ |
7,449,066 |
|
|
|
|
|
|
|
|
$ |
7,146,571 |
|
|
|
|
|
|
|
Interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing demand, savings and money market deposits |
|
$ |
3,946,573 |
|
|
$ |
4,587 |
|
|
0.46 |
% |
|
$ |
3,058,463 |
|
|
$ |
1,829 |
|
|
0.24 |
% |
|
$ |
2,847,562 |
|
|
$ |
1,500 |
|
|
0.21 |
% |
Time deposits |
|
|
892,122 |
|
|
|
2,048 |
|
|
0.91 |
% |
|
|
799,759 |
|
|
|
1,116 |
|
|
0.55 |
% |
|
|
851,779 |
|
|
|
1,312 |
|
|
0.61 |
% |
Securities sold under agreements to repurchase |
|
|
18,515 |
|
|
|
23 |
|
|
0.49 |
% |
|
|
22,183 |
|
|
|
7 |
|
|
0.13 |
% |
|
|
20,420 |
|
|
|
7 |
|
|
0.14 |
% |
Long-term debt |
|
|
53,530 |
|
|
|
539 |
|
|
3.99 |
% |
|
|
39,543 |
|
|
|
326 |
|
|
3.27 |
% |
|
|
24,599 |
|
|
|
196 |
|
|
3.16 |
% |
Federal Home Loan Bank advances |
|
|
162,146 |
|
|
|
1,695 |
|
|
4.15 |
% |
|
|
— |
|
|
|
— |
|
|
0.00 |
% |
|
|
— |
|
|
|
— |
|
|
0.00 |
% |
Total interest bearing liabilities |
|
$ |
5,072,886 |
|
|
$ |
8,892 |
|
|
0.70 |
% |
|
$ |
3,919,948 |
|
|
$ |
3,278 |
|
|
0.33 |
% |
|
$ |
3,744,360 |
|
|
$ |
3,015 |
|
|
0.32 |
% |
Demand deposits |
|
$ |
3,142,296 |
|
|
|
|
|
|
|
|
$ |
2,557,286 |
|
|
|
|
|
|
|
|
$ |
2,459,063 |
|
|
|
|
|
|
|
Other liabilities |
|
|
145,608 |
|
|
|
|
|
|
|
|
|
100,983 |
|
|
|
|
|
|
|
|
|
94,345 |
|
|
|
|
|
|
|
Total liabilities |
|
|
8,360,790 |
|
|
|
|
|
|
|
|
|
6,578,217 |
|
|
|
|
|
|
|
|
|
6,297,768 |
|
|
|
|
|
|
|
Shareholders' equity |
|
|
1,082,840 |
|
|
|
|
|
|
|
|
|
870,849 |
|
|
|
|
|
|
|
|
|
848,803 |
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
9,443,630 |
|
|
|
|
|
|
|
|
$ |
7,449,066 |
|
|
|
|
|
|
|
|
$ |
7,146,571 |
|
|
|
|
|
|
|
Net interest income
FTE(2) |
|
|
|
|
$ |
96,520 |
|
|
|
|
|
|
|
$ |
70,500 |
|
|
|
|
|
|
|
$ |
50,785 |
|
|
|
Interest rate spread
FTE(2) |
|
|
|
|
|
|
|
|
4.09 |
% |
|
|
|
|
|
|
|
|
3.86 |
% |
|
|
|
|
|
|
|
|
2.89 |
% |
Net interest earning
assets |
|
$ |
3,656,596 |
|
|
|
|
|
|
|
|
$ |
3,062,100 |
|
|
|
|
|
|
|
|
$ |
2,911,558 |
|
|
|
|
|
|
|
Net interest margin
FTE(2) |
|
|
|
|
|
|
|
|
4.39 |
% |
|
|
|
|
|
|
|
|
4.01 |
% |
|
|
|
|
|
|
|
|
3.03 |
% |
Average transaction
deposits |
|
$ |
7,088,869 |
|
|
|
|
|
|
|
|
$ |
5,615,749 |
|
|
|
|
|
|
|
|
$ |
5,306,625 |
|
|
|
|
|
|
|
Average total deposits |
|
|
7,980,991 |
|
|
|
|
|
|
|
|
|
6,415,508 |
|
|
|
|
|
|
|
|
|
6,158,404 |
|
|
|
|
|
|
|
Ratio of average interest
earning assets to average interest bearing liabilities |
|
|
172.08% |
|
|
|
|
|
|
|
|
|
178.12% |
|
|
|
|
|
|
|
|
|
177.76% |
|
|
|
|
|
|
|
(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
$1,454, $1,409 and $1,299 for the three months ended December 31,
2022, September 30, 2022 and December 31, 2021, respectively. |
|
|
|
|
NATIONAL
BANK HOLDINGS CORPORATIONSummary of Net Interest
Margin(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2022 |
|
For the year ended December 31, 2021 |
|
Average |
|
|
|
|
Average |
|
Average |
|
|
|
|
Average |
|
balance |
|
Interest |
|
rate |
|
balance |
|
Interest |
|
rate |
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated loans FTE(1)(2) |
$ |
4,767,713 |
|
|
$ |
218,561 |
|
4.58 |
% |
|
$ |
4,129,684 |
|
|
$ |
164,527 |
|
3.98 |
% |
Acquired loans |
|
594,222 |
|
|
|
40,060 |
|
6.74 |
% |
|
|
202,174 |
|
|
|
17,340 |
|
8.58 |
% |
Loans held for sale |
|
58,788 |
|
|
|
2,563 |
|
4.36 |
% |
|
|
178,373 |
|
|
|
5,110 |
|
2.86 |
% |
Investment securities available-for-sale |
|
839,872 |
|
|
|
15,091 |
|
1.80 |
% |
|
|
667,859 |
|
|
|
10,014 |
|
1.50 |
% |
Investment securities held-to-maturity |
|
604,423 |
|
|
|
9,109 |
|
1.51 |
% |
|
|
576,343 |
|
|
|
7,311 |
|
1.27 |
% |
Other securities |
|
17,598 |
|
|
|
1,034 |
|
5.88 |
% |
|
|
15,032 |
|
|
|
838 |
|
5.57 |
% |
Interest earning deposits |
|
426,137 |
|
|
|
3,782 |
|
0.89 |
% |
|
|
751,835 |
|
|
|
986 |
|
0.13 |
% |
Total interest earning assets FTE(2) |
$ |
7,308,753 |
|
|
$ |
290,200 |
|
3.97 |
% |
|
$ |
6,521,300 |
|
|
$ |
206,126 |
|
3.16 |
% |
Cash and due from banks |
$ |
90,657 |
|
|
|
|
|
|
|
$ |
78,979 |
|
|
|
|
|
|
Other assets |
|
490,206 |
|
|
|
|
|
|
|
|
472,775 |
|
|
|
|
|
|
Allowance for credit
losses |
|
(59,824 |
) |
|
|
|
|
|
|
|
(52,943 |
) |
|
|
|
|
|
Total assets |
$ |
7,829,792 |
|
|
|
|
|
|
|
$ |
7,020,111 |
|
|
|
|
|
|
Interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing demand, savings and money market deposits |
$ |
3,235,834 |
|
|
$ |
9,347 |
|
0.29 |
% |
|
$ |
2,772,091 |
|
|
$ |
6,240 |
|
0.23 |
% |
Time deposits |
|
826,293 |
|
|
|
5,249 |
|
0.64 |
% |
|
|
914,837 |
|
|
|
7,362 |
|
0.80 |
% |
Securities sold under agreements to repurchase |
|
21,298 |
|
|
|
43 |
|
0.20 |
% |
|
|
20,338 |
|
|
|
23 |
|
0.11 |
% |
Long-term debt |
|
43,048 |
|
|
|
1,519 |
|
3.53 |
% |
|
|
6,200 |
|
|
|
196 |
|
3.16 |
% |
Federal Home Loan Bank advances |
|
40,870 |
|
|
|
1,695 |
|
4.15 |
% |
|
|
— |
|
|
|
— |
|
0.00 |
% |
Total interest bearing liabilities |
$ |
4,167,343 |
|
|
$ |
17,853 |
|
0.43 |
% |
|
$ |
3,713,466 |
|
|
$ |
13,821 |
|
0.37 |
% |
Demand deposits |
$ |
2,652,561 |
|
|
|
|
|
|
|
$ |
2,355,171 |
|
|
|
|
|
|
Other liabilities |
|
105,507 |
|
|
|
|
|
|
|
|
104,935 |
|
|
|
|
|
|
Total liabilities |
|
6,925,411 |
|
|
|
|
|
|
|
|
6,173,572 |
|
|
|
|
|
|
Shareholders' equity |
|
904,381 |
|
|
|
|
|
|
|
|
846,539 |
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
7,829,792 |
|
|
|
|
|
|
|
$ |
7,020,111 |
|
|
|
|
|
|
Net interest income
FTE(2) |
|
|
|
$ |
272,347 |
|
|
|
|
|
|
$ |
192,305 |
|
|
Interest rate spread
FTE(2) |
|
|
|
|
|
|
3.54 |
% |
|
|
|
|
|
|
|
2.79 |
% |
Net interest earning
assets |
$ |
3,141,410 |
|
|
|
|
|
|
|
$ |
2,807,834 |
|
|
|
|
|
|
Net interest margin
FTE(2) |
|
|
|
|
|
|
3.73 |
% |
|
|
|
|
|
|
|
2.95 |
% |
Average transaction
deposits |
$ |
5,888,395 |
|
|
|
|
|
|
|
$ |
5,127,262 |
|
|
|
|
|
|
Average total deposits |
|
6,714,688 |
|
|
|
|
|
|
|
|
6,042,099 |
|
|
|
|
|
|
Ratio of average interest
earning assets to average interest bearing liabilities |
|
175.38% |
|
|
|
|
|
|
|
|
175.61% |
|
|
|
|
|
|
(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
$5,512 and $5,161 for the years ended December 31, 2022 and
December 31, 2021, respectively. |
|
|
|
NATIONAL BANK HOLDINGS
CORPORATIONAllowance for Credit Losses and Asset
Quality(Dollars in thousands)
Allowance for Credit Losses Analysis
|
As of and for the three months ended |
|
December 31, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
Beginning allowance for credit losses |
$ |
65,623 |
|
|
$ |
50,860 |
|
|
$ |
49,155 |
|
Day 1 CECL provision
expense |
|
16,027 |
|
|
|
5,201 |
|
|
|
— |
|
PCD allowance for credit loss
at acquisition |
|
3,764 |
|
|
|
2,474 |
|
|
|
— |
|
Charge-offs |
|
(849 |
) |
|
|
(253 |
) |
|
|
(268 |
) |
Recoveries |
|
129 |
|
|
|
66 |
|
|
|
72 |
|
Provision expense for credit
losses |
|
4,859 |
|
|
|
7,275 |
|
|
|
735 |
|
Ending allowance for credit
losses ("ACL") |
$ |
89,553 |
|
|
$ |
65,623 |
|
|
$ |
49,694 |
|
Ratio of annualized net
charge-offs to average total loans during the period |
|
0.04% |
|
|
|
0.01% |
|
|
|
0.02% |
|
Ratio of ACL to total loans
outstanding at period end |
|
1.24% |
|
|
|
1.15% |
|
|
|
1.10% |
|
Ratio of ACL to total
non-performing loans at period end |
|
542.35% |
|
|
|
447.72% |
|
|
|
458.77% |
|
Total loans |
$ |
7,220,469 |
|
|
$ |
5,721,985 |
|
|
$ |
4,513,383 |
|
Average total loans during the
period |
|
7,029,021 |
|
|
|
5,114,044 |
|
|
|
4,490,391 |
|
Total non-performing
loans |
|
16,512 |
|
|
|
14,657 |
|
|
|
10,832 |
|
Past Due and Non-accrual Loans
|
December 31, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
Loans 30-89 days past due and still accruing interest |
$ |
2,986 |
|
|
$ |
1,548 |
|
|
$ |
1,687 |
|
Loans 90 days past due and
still accruing interest |
|
95 |
|
|
|
332 |
|
|
|
420 |
|
Non-accrual loans |
|
16,512 |
|
|
|
14,657 |
|
|
|
10,832 |
|
Total past due and non-accrual
loans |
$ |
19,593 |
|
|
$ |
16,537 |
|
|
$ |
12,939 |
|
Total 90 days past due and
still accruing interest and non-accrual loans to total loans |
|
0.23% |
|
|
|
0.26% |
|
|
|
0.25% |
|
Asset Quality Data
|
December 31, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
Non-performing loans |
$ |
16,512 |
|
|
$ |
14,657 |
|
|
$ |
10,832 |
|
OREO |
|
3,731 |
|
|
|
3,695 |
|
|
|
7,005 |
|
Total non-performing
assets |
$ |
20,243 |
|
|
$ |
18,352 |
|
|
$ |
17,837 |
|
Accruing restructured
loans |
$ |
4,654 |
|
|
$ |
4,610 |
|
|
$ |
7,186 |
|
Total non-performing loans to
total loans |
|
0.23% |
|
|
|
0.26% |
|
|
|
0.24% |
|
Total non-performing assets to
total loans and OREO |
|
0.28% |
|
|
|
0.32% |
|
|
|
0.39% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL
BANK HOLDINGS CORPORATIONKey
Metrics(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the three months ended |
|
As of and for the years ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
2022 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Return on average assets |
|
0.70% |
|
|
|
0.84% |
|
|
|
1.26% |
|
|
|
0.91% |
|
|
|
1.33% |
|
Return on average tangible
assets(2) |
|
0.77% |
|
|
|
0.87% |
|
|
|
1.30% |
|
|
|
0.95% |
|
|
|
1.37% |
|
Return on average tangible
assets, adjusted(2) |
|
1.55% |
|
|
|
1.39% |
|
|
|
1.30% |
|
|
|
1.32% |
|
|
|
1.37% |
|
Return on average equity |
|
6.13% |
|
|
|
7.22% |
|
|
|
10.64% |
|
|
|
7.88% |
|
|
|
11.06% |
|
Return on average tangible
common equity(2) |
|
9.17% |
|
|
|
8.66% |
|
|
|
12.37% |
|
|
|
9.91% |
|
|
|
12.87% |
|
Return on average tangible
common equity, adjusted(2) |
|
18.37% |
|
|
|
13.76% |
|
|
|
12.37% |
|
|
|
13.75% |
|
|
|
12.87% |
|
Loan to deposit ratio (end of
period) |
|
91.72% |
|
|
|
84.10% |
|
|
|
72.47% |
|
|
|
91.72% |
|
|
|
72.47% |
|
Non-interest bearing deposits
to total deposits (end of period) |
|
39.82% |
|
|
|
40.21% |
|
|
|
40.24% |
|
|
|
39.82% |
|
|
|
40.24% |
|
Net interest margin(3) |
|
4.32% |
|
|
|
3.93% |
|
|
|
2.95% |
|
|
|
3.65% |
|
|
|
2.87% |
|
Net interest margin
FTE(2)(3) |
|
4.39% |
|
|
|
4.01% |
|
|
|
3.03% |
|
|
|
3.73% |
|
|
|
2.95% |
|
Interest rate spread
FTE(2)(4) |
|
4.09% |
|
|
|
3.86% |
|
|
|
2.89% |
|
|
|
3.54% |
|
|
|
2.79% |
|
Yield on earning
assets(5) |
|
4.72% |
|
|
|
4.11% |
|
|
|
3.13% |
|
|
|
3.90% |
|
|
|
3.08% |
|
Yield on earning assets
FTE(2)(5) |
|
4.79% |
|
|
|
4.19% |
|
|
|
3.21% |
|
|
|
3.97% |
|
|
|
3.16% |
|
Cost of interest bearing
liabilities |
|
0.70% |
|
|
|
0.33% |
|
|
|
0.32% |
|
|
|
0.43% |
|
|
|
0.37% |
|
Cost of deposits |
|
0.33% |
|
|
|
0.18% |
|
|
|
0.18% |
|
|
|
0.22% |
|
|
|
0.23% |
|
Non-interest income to total
revenue FTE(2) |
|
12.78% |
|
|
|
19.76% |
|
|
|
31.37% |
|
|
|
19.82% |
|
|
|
36.46% |
|
Non-interest expense to
average assets |
|
2.84% |
|
|
|
2.87% |
|
|
|
2.47% |
|
|
|
2.70% |
|
|
|
2.73% |
|
Efficiency ratio |
|
61.96% |
|
|
|
62.39% |
|
|
|
61.22% |
|
|
|
63.22% |
|
|
|
64.48% |
|
Efficiency ratio FTE(2) |
|
61.15% |
|
|
|
61.39% |
|
|
|
60.14% |
|
|
|
62.19% |
|
|
|
63.38% |
|
Efficiency ratio FTE,
adjusted(2) |
|
53.76% |
|
|
|
52.99% |
|
|
|
59.74% |
|
|
|
57.07% |
|
|
|
62.99% |
|
Pre-provision net revenue |
$ |
41,542 |
|
|
$ |
32,511 |
|
|
$ |
28,196 |
|
|
$ |
122,913 |
|
|
$ |
105,678 |
|
Pre-provision net revenue
FTE(2) |
|
42,996 |
|
|
|
33,920 |
|
|
|
29,495 |
|
|
|
128,425 |
|
|
|
110,839 |
|
Pre-provision net revenue FTE,
adjusted(2) |
|
49,807 |
|
|
|
40,916 |
|
|
|
29,495 |
|
|
|
143,492 |
|
|
|
110,839 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Loans Asset
Quality Data(6)(7)(8) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans to total
loans |
|
0.23% |
|
|
|
0.26% |
|
|
|
0.24% |
|
|
|
0.23% |
|
|
|
0.24% |
|
Non-performing assets to total
loans and OREO |
|
0.28% |
|
|
|
0.32% |
|
|
|
0.39% |
|
|
|
0.28% |
|
|
|
0.39% |
|
Allowance for credit losses to
total loans |
|
1.24% |
|
|
|
1.15% |
|
|
|
1.10% |
|
|
|
1.24% |
|
|
|
1.10% |
|
Allowance for credit losses to
non-performing loans |
|
542.35% |
|
|
|
447.72% |
|
|
|
458.77% |
|
|
|
542.35% |
|
|
|
458.77% |
|
Net charge-offs to average
loans |
|
0.04% |
|
|
|
0.01% |
|
|
|
0.02% |
|
|
|
0.03% |
|
|
|
0.03% |
|
(1) |
|
Quarterly ratios are annualized. |
(2) |
|
Ratio represents non-GAAP financial measure. See non-GAAP
reconciliations below. |
(3) |
|
Net interest margin represents net interest income, including
accretion income on interest earning assets, as a percentage of
average interest earning assets. |
(4) |
|
Interest rate spread represents the difference between the weighted
average yield on interest earning assets and the weighted average
cost of interest bearing liabilities. |
(5) |
|
Interest earning assets include assets that earn interest/accretion
or dividends. Any market value adjustments on investment securities
or loans are excluded from interest earning assets. |
(6) |
|
Non-performing loans consist of non-accruing loans and restructured
loans on non-accrual. |
(7) |
|
Non-performing assets include non-performing loans and other real
estate owned. |
(8) |
|
Total loans are net of unearned discounts and fees. |
|
|
|
NATIONAL BANK HOLDINGS
CORPORATIONNON-GAAP FINANCIAL MEASURES AND
RECONCILIATIONS(Dollars in thousands, except share and per
share data)
Tangible Common Book Value Ratios
|
|
December 31, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
Total shareholders' equity |
|
$ |
1,092,202 |
|
|
$ |
919,426 |
|
|
$ |
840,106 |
|
Less: goodwill, core deposit
intangible (“CDI”) and wealth management intangible (“WMI”) assets,
net |
|
|
(327,191 |
) |
|
|
(186,608 |
) |
|
|
(121,392 |
) |
Add: deferred tax liability
related to goodwill |
|
|
10,984 |
|
|
|
10,755 |
|
|
|
10,070 |
|
Tangible common equity
(non-GAAP) |
|
$ |
775,995 |
|
|
$ |
743,573 |
|
|
$ |
728,784 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
9,573,243 |
|
|
$ |
7,922,921 |
|
|
$ |
7,214,011 |
|
Less: goodwill, CDI and WMI
assets, net |
|
|
(327,191 |
) |
|
|
(186,608 |
) |
|
|
(121,392 |
) |
Add: deferred tax liability
related to goodwill |
|
|
10,984 |
|
|
|
10,755 |
|
|
|
10,070 |
|
Tangible assets
(non-GAAP) |
|
$ |
9,257,036 |
|
|
$ |
7,747,068 |
|
|
$ |
7,102,689 |
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity
to tangible assets calculations: |
|
|
|
|
|
|
|
|
|
Total shareholders' equity to
total assets |
|
|
11.41% |
|
|
|
11.60% |
|
|
|
11.65% |
|
Less: impact of goodwill, CDI
and WMI assets, net |
|
|
(3.03)% |
|
|
|
(2.00)% |
|
|
|
(1.39)% |
|
Tangible common equity to
tangible assets (non-GAAP) |
|
|
8.38% |
|
|
|
9.60% |
|
|
|
10.26% |
|
|
|
|
|
|
|
|
|
|
|
Tangible common book
value per share calculations: |
|
|
|
|
|
|
|
|
|
Tangible common equity
(non-GAAP) |
|
$ |
775,995 |
|
|
$ |
743,573 |
|
|
$ |
728,784 |
|
Divided by: ending shares
outstanding |
|
|
37,608,519 |
|
|
|
33,189,253 |
|
|
|
29,958,764 |
|
Tangible common book value per
share (non-GAAP) |
|
$ |
20.63 |
|
|
$ |
22.40 |
|
|
$ |
24.33 |
|
|
|
|
|
|
|
|
|
|
|
Tangible common book
value per share, excluding accumulated other comprehensive income
calculations: |
|
|
|
|
|
|
|
|
|
Tangible common equity
(non-GAAP) |
|
$ |
775,995 |
|
|
$ |
743,573 |
|
|
$ |
728,784 |
|
Accumulated other
comprehensive loss, net of tax |
|
|
88,204 |
|
|
|
89,339 |
|
|
|
6,963 |
|
Tangible common book value,
excluding accumulated other comprehensive loss, net of tax
(non-GAAP) |
|
|
864,199 |
|
|
|
832,912 |
|
|
|
735,747 |
|
Divided by: ending shares
outstanding |
|
|
37,608,519 |
|
|
|
33,189,253 |
|
|
|
29,958,764 |
|
Tangible common book value per
share, excluding accumulated other comprehensive loss, net of tax
(non-GAAP) |
|
$ |
22.98 |
|
|
$ |
25.10 |
|
|
$ |
24.56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 years ended |
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
2022 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Net income |
|
$ |
16,721 |
|
|
$ |
15,839 |
|
|
$ |
22,769 |
|
|
$ |
71,274 |
|
|
$ |
93,606 |
|
Add: impact of CDI and WMI
amortization expense, after tax |
|
|
1,049 |
|
|
|
295 |
|
|
|
227 |
|
|
|
1,799 |
|
|
|
909 |
|
Net income excluding the
impact of CDI and WMI amortization expense, after tax
(non-GAAP) |
|
$ |
17,770 |
|
|
$ |
16,134 |
|
|
$ |
22,996 |
|
|
$ |
73,073 |
|
|
$ |
94,515 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income excluding the
impact of CDI and WMI amortization expense, after tax |
|
$ |
17,770 |
|
|
$ |
16,134 |
|
|
$ |
22,996 |
|
|
$ |
73,073 |
|
|
$ |
94,515 |
|
Add: acquisition-related
adjustments, after tax (non-GAAP)(1) |
|
|
17,825 |
|
|
|
9,510 |
|
|
|
— |
|
|
|
28,303 |
|
|
|
— |
|
Net income adjusted for the
impact of CDI and WMI amortization expense and acquisition-related
expenses, after tax (non-GAAP)(1) |
|
$ |
35,595 |
|
|
$ |
25,644 |
|
|
$ |
22,996 |
|
|
$ |
101,376 |
|
|
$ |
94,515 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets |
|
$ |
9,443,630 |
|
|
$ |
7,449,066 |
|
|
$ |
7,146,571 |
|
|
$ |
7,829,792 |
|
|
$ |
7,020,111 |
|
Less: average goodwill, CDI
and WMI assets, net of deferred tax liability related to
goodwill |
|
|
(314,017 |
) |
|
|
(131,490 |
) |
|
|
(111,508 |
) |
|
|
(166,857 |
) |
|
|
(111,944 |
) |
Average tangible assets
(non-GAAP) |
|
$ |
9,129,613 |
|
|
$ |
7,317,576 |
|
|
$ |
7,035,063 |
|
|
$ |
7,662,934 |
|
|
$ |
6,908,167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity |
|
$ |
1,082,840 |
|
|
$ |
870,849 |
|
|
$ |
848,803 |
|
|
$ |
904,381 |
|
|
$ |
846,539 |
|
Less: average goodwill, CDI
and WMI assets, net of deferred tax liability related to
goodwill |
|
|
(314,017 |
) |
|
|
(131,490 |
) |
|
|
(111,508 |
) |
|
|
(166,857 |
) |
|
|
(111,944 |
) |
Average tangible common equity
(non-GAAP) |
|
$ |
768,823 |
|
|
$ |
739,359 |
|
|
$ |
737,295 |
|
|
$ |
737,524 |
|
|
$ |
734,595 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
0.70% |
|
|
|
0.84% |
|
|
|
1.26% |
|
|
|
0.91% |
|
|
|
1.33% |
|
Return on average tangible
assets (non-GAAP) |
|
|
0.77% |
|
|
|
0.87% |
|
|
|
1.30% |
|
|
|
0.95% |
|
|
|
1.37% |
|
Adjusted return on average
tangible assets (non-GAAP) |
|
|
1.55% |
|
|
|
1.39% |
|
|
|
1.30% |
|
|
|
1.32% |
|
|
|
1.37% |
|
Return on average equity |
|
|
6.13% |
|
|
|
7.22% |
|
|
|
10.64% |
|
|
|
7.88% |
|
|
|
11.06% |
|
Return on average tangible
common equity (non-GAAP) |
|
|
9.17% |
|
|
|
8.66% |
|
|
|
12.37% |
|
|
|
9.91% |
|
|
|
12.87% |
|
Adjusted return on average
tangible common equity (non-GAAP) |
|
|
18.37% |
|
|
|
13.76% |
|
|
|
12.37% |
|
|
|
13.75% |
|
|
|
12.87% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Acquisition-related adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision expense
adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CECL day 1 provision expense (non-GAAP) |
|
$ |
16,348 |
|
|
$ |
5,358 |
|
|
$ |
— |
|
|
$ |
21,706 |
|
|
$ |
— |
|
Non-interest expense
adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related expenses (non-GAAP) |
|
|
6,811 |
|
|
|
6,996 |
|
|
|
— |
|
|
|
15,067 |
|
|
$ |
— |
|
Acquisition-related adjustments before tax (non-GAAP) |
|
|
23,159 |
|
|
|
12,354 |
|
|
|
— |
|
|
|
36,773 |
|
|
|
— |
|
Tax expense impact |
|
|
(5,334 |
) |
|
|
(2,844 |
) |
|
|
— |
|
|
|
(8,470 |
) |
|
|
— |
|
Acquisition-related adjustments, after tax (non-GAAP) |
|
$ |
17,825 |
|
|
$ |
9,510 |
|
|
$ |
— |
|
|
$ |
28,303 |
|
|
$ |
— |
|
Fully Taxable Equivalent Yield on Earning Assets and Net
Interest Margin
|
|
As of and for the three months
ended |
|
As of and for the years ended |
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
2022 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Interest income |
|
$ |
103,958 |
|
|
$ |
72,369 |
|
|
$ |
52,501 |
|
|
$ |
284,688 |
|
|
$ |
200,965 |
|
Add: impact of taxable
equivalent adjustment |
|
|
1,454 |
|
|
|
1,409 |
|
|
|
1,299 |
|
|
|
5,512 |
|
|
|
5,161 |
|
Interest income FTE
(non-GAAP) |
|
$ |
105,412 |
|
|
$ |
73,778 |
|
|
$ |
53,800 |
|
|
$ |
290,200 |
|
|
$ |
206,126 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
95,066 |
|
|
$ |
69,091 |
|
|
$ |
49,486 |
|
|
$ |
266,835 |
|
|
$ |
187,144 |
|
Add: impact of taxable
equivalent adjustment |
|
|
1,454 |
|
|
|
1,409 |
|
|
|
1,299 |
|
|
|
5,512 |
|
|
|
5,161 |
|
Net interest income FTE
(non-GAAP) |
|
$ |
96,520 |
|
|
$ |
70,500 |
|
|
$ |
50,785 |
|
|
$ |
272,347 |
|
|
$ |
192,305 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average earning assets |
|
$ |
8,729,482 |
|
|
$ |
6,982,048 |
|
|
$ |
6,655,918 |
|
|
$ |
7,308,753 |
|
|
$ |
6,521,300 |
|
Yield on earning assets |
|
|
4.72% |
|
|
|
4.11% |
|
|
|
3.13% |
|
|
|
3.90% |
|
|
|
3.08% |
|
Yield on earning assets FTE
(non-GAAP) |
|
|
4.79% |
|
|
|
4.19% |
|
|
|
3.21% |
|
|
|
3.97% |
|
|
|
3.16% |
|
Net interest margin |
|
|
4.32% |
|
|
|
3.93% |
|
|
|
2.95% |
|
|
|
3.65% |
|
|
|
2.87% |
|
Net interest margin FTE
(non-GAAP) |
|
|
4.39% |
|
|
|
4.01% |
|
|
|
3.03% |
|
|
|
3.73% |
|
|
|
2.95% |
|
Efficiency Ratio and Pre-Provision Net
Revenue
|
|
As of and for the three months ended |
|
As of and for the years ended |
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
2022 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Net interest income |
|
$ |
95,066 |
|
|
$ |
69,091 |
|
|
$ |
49,486 |
|
|
$ |
266,835 |
|
|
$ |
187,144 |
|
Add: impact of taxable
equivalent adjustment |
|
|
1,454 |
|
|
|
1,409 |
|
|
|
1,299 |
|
|
|
5,512 |
|
|
|
5,161 |
|
Net interest income FTE
(non-GAAP) |
|
$ |
96,520 |
|
|
$ |
70,500 |
|
|
$ |
50,785 |
|
|
$ |
272,347 |
|
|
$ |
192,305 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income |
|
$ |
14,138 |
|
|
$ |
17,358 |
|
|
$ |
23,215 |
|
|
$ |
67,312 |
|
|
$ |
110,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense |
|
$ |
67,662 |
|
|
$ |
53,938 |
|
|
$ |
44,505 |
|
|
$ |
211,234 |
|
|
$ |
191,830 |
|
Less: CDI and WMI asset
amortization |
|
|
(1,363 |
) |
|
|
(383 |
) |
|
|
(296 |
) |
|
|
(2,338 |
) |
|
|
(1,183 |
) |
Less: acquisition-related
expenses (non-GAAP) |
|
|
(6,811 |
) |
|
|
(6,996 |
) |
|
|
— |
|
|
|
(15,067 |
) |
|
|
— |
|
Non-interest expense adjusted
for CDI and WMI asset amortization and acquisition-related expenses
(non-GAAP) |
|
$ |
59,488 |
|
|
$ |
46,559 |
|
|
$ |
44,209 |
|
|
$ |
193,829 |
|
|
$ |
190,647 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense |
|
$ |
67,662 |
|
|
$ |
53,938 |
|
|
$ |
44,505 |
|
|
$ |
211,234 |
|
|
$ |
191,830 |
|
Less: acquisition-related
expenses (non-GAAP) |
|
|
(6,811 |
) |
|
|
(6,996 |
) |
|
|
— |
|
|
|
(15,067 |
) |
|
|
— |
|
Non-interest expense, adjusted
for acquisition-related expenses (non-GAAP) |
|
$ |
60,851 |
|
|
$ |
46,942 |
|
|
$ |
44,505 |
|
|
$ |
196,167 |
|
|
$ |
191,830 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
|
|
61.96% |
|
|
|
62.39% |
|
|
|
61.22% |
|
|
|
63.22% |
|
|
|
64.48% |
|
Efficiency ratio FTE
(non-GAAP) |
|
|
61.15% |
|
|
|
61.39% |
|
|
|
60.14% |
|
|
|
62.19% |
|
|
|
63.38% |
|
Efficiency ratio adjusted for
CDI and WMI amortization and acquisition-related expenses FTE
(non-GAAP) |
|
|
53.76% |
|
|
|
52.99% |
|
|
|
59.74% |
|
|
|
57.07% |
|
|
|
62.99% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-provision net revenue
(non-GAAP) |
|
$ |
41,542 |
|
|
$ |
32,511 |
|
|
$ |
28,196 |
|
|
$ |
122,913 |
|
|
$ |
105,678 |
|
Pre-provision net revenue, FTE
(non-GAAP) |
|
|
42,996 |
|
|
|
33,920 |
|
|
|
29,495 |
|
|
|
128,425 |
|
|
|
110,839 |
|
Pre-provision net revenue FTE,
adjusted for acquisition-related expenses (non-GAAP) |
|
|
49,807 |
|
|
|
40,916 |
|
|
|
29,495 |
|
|
|
143,492 |
|
|
|
110,839 |
|
Adjusted Net Income and Earnings Per Share
|
|
As of and for the three months ended |
|
As of and for the years ended |
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
2022 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Adjustments to net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
16,721 |
|
|
$ |
15,839 |
|
|
$ |
22,769 |
|
|
$ |
71,274 |
|
|
$ |
93,606 |
|
Add: Acquisition-related
adjustments, after tax (non-GAAP) |
|
|
17,825 |
|
|
|
9,510 |
|
|
|
— |
|
|
|
28,303 |
|
|
|
— |
|
Adjusted net income
(non-GAAP) |
|
$ |
34,546 |
|
|
$ |
25,349 |
|
|
$ |
22,769 |
|
|
$ |
99,577 |
|
|
$ |
93,606 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
diluted |
|
$ |
0.44 |
|
|
$ |
0.50 |
|
|
$ |
0.74 |
|
|
$ |
2.18 |
|
|
$ |
3.01 |
|
Add: Acquisition-related
adjustments, after tax (non-GAAP) |
|
|
0.47 |
|
|
|
0.30 |
|
|
|
— |
|
|
|
0.87 |
|
|
|
— |
|
Adjusted earnings per share -
diluted (non-GAAP)(1) |
|
$ |
0.91 |
|
|
$ |
0.80 |
|
|
$ |
0.74 |
|
|
$ |
3.05 |
|
|
$ |
3.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
National Bank (NYSE:NBHC)
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