National Bank Holdings Corporation (NYSE: NBHC) reported:
|
|
For the quarter |
|
For the quarter - adjusted(1) |
|
|
1Q23 |
|
4Q22 |
|
1Q22 |
|
1Q23 |
|
4Q22 |
|
1Q22 |
Net income ($000's) |
|
$ |
40,283 |
|
|
$ |
16,721 |
|
|
$ |
18,352 |
|
|
$ |
40,283 |
|
|
$ |
34,546 |
|
|
$ |
18,352 |
|
Earnings per share -
diluted |
|
$ |
1.06 |
|
|
$ |
0.44 |
|
|
$ |
0.60 |
|
|
$ |
1.06 |
|
|
$ |
0.91 |
|
|
$ |
0.60 |
|
Return on average tangible
assets(2) |
|
|
1.80% |
|
|
|
0.77% |
|
|
|
1.07% |
|
|
|
1.80% |
|
|
|
1.55% |
|
|
|
1.07% |
|
Return on average tangible
common equity(2) |
|
|
20.86% |
|
|
|
9.17% |
|
|
|
10.31% |
|
|
|
20.86% |
|
|
|
18.37% |
|
|
|
10.31% |
|
(1 |
) |
|
See non-GAAP reconciliations below. |
(2 |
) |
|
Ratios are annualized. |
|
|
|
In announcing these results, Chief Executive
Officer Tim Laney shared, “We are pleased to deliver record
quarterly earnings of $1.06 per diluted share and a record return
on average tangible common equity of 20.86%. Our teams maintained
excellent credit quality with annualized net charge-offs of just
one basis point, and a record low non-performing loans ratio of
0.13%. Our granular and relationship-focused deposit base continues
to generate high-quality lower-cost funding. We believe our strong
capital, ample liquidity, and relationship-based banking model
positions us to continue to serve our clients and communities in
any economic environment.”
Addressing recent banking industry liquidity
stress, Mr. Laney added, “We have built a granular and
relationship-focused deposit base and our investment securities
portfolio has a short average duration and is primarily comprised
of government guaranteed mortgage-back securities. As previously
reported, approximately 70% of our deposits are FDIC insured.”
Mr. Laney added, “Our recently announced
acquisition of Cambr provides us with a truly unique source of
liquidity and further diversifies our funding and fee income
capabilities. To that end, NBH has already added $500 million of
deposits to its balance sheet since the deal closing on April 3rd.
The remaining program balances continue to be swept to Cambr bank
partners. We are pleased to have the ability to significantly grow
FDIC insured deposits with little incremental overhead.”
First Quarter 2023
Results(All comparisons refer to the fourth
quarter of 2022, except as noted)
Net income increased $23.6 million to a record
$40.3 million, or $1.06 per diluted share, compared to net income
of $16.7 million, or $0.44 per diluted share, during the fourth
quarter of 2022. Fully taxable equivalent pre-provision net revenue
increased $9.7 million to $52.7 million during the first quarter,
compared to pre-provision net revenue of $43.0 million. The return
on average tangible assets totaled a record 1.80%, compared to a
return of 0.77% during the fourth quarter, and the return on
average tangible common equity totaled a record 20.86%, compared to
a fourth quarter return of 9.17%.
The fourth quarter included $23.2 million of
non-recurring acquisition-related expenses, including $16.3 million
of CECL Day 1 provision expense. Adjusting for these expenses, net
income increased $5.7 million during the first quarter, or 67%
annualized, and fully taxable equivalent pre-provision net revenue
increased $2.9 million, or 23.4% annualized. The adjusted return on
average tangible assets increased 25 basis points, and the adjusted
return on average tangible common equity increased 249 basis
points.
Net Interest IncomeFully
taxable equivalent net interest income totaled $96.3 million,
compared to $96.5 million in the prior quarter, as an increase in
daily interest income was slightly offset by two fewer days. The
fully taxable equivalent net interest margin remained consistent at
4.39% as an increase in cost of funds was offset by an increase in
earning asset yields. Average earning assets increased $173.3
million, primarily driven by average originated loan growth. The
cost of funds totaled 0.90%, compared to 0.43% during the fourth
quarter.
LoansTotal loans increased
$124.8 million or 7.0% annualized to a record $7.3 billion at March
31, 2023. We generated quarterly loan fundings totaling $393.9
million with a weighted average new loan origination rate of
7.5%.
Asset Quality and Provision for Credit
LossesThe Company recorded $0.9 million of provision
expense during the quarter to support the quarter’s loan growth.
Annualized net charge-offs decreased three basis points to 0.01% of
average total loans during the first quarter. Non-performing loans
(comprised of non-accrual loans and non-accrual TDMs) decreased 10
basis points to 0.13% of total loans, and non-performing assets
decreased 10 basis points to 0.18% of total loans and OREO. The
allowance for credit losses as a percentage of loans totaled 1.23%,
compared to 1.24% at December 31, 2022.
DepositsWe maintain a granular
and well diversified deposit base with no exposure to venture
capital or crypto deposits. Average total deposits were $7.7
billion during the first quarter 2023, compared to $8.0 billion
during the fourth quarter 2022. The loan to deposit ratio was 96.9%
at March 31, 2023. Average transaction deposits (defined as total
deposits less time deposits) totaled $6.8 billion, compared to $7.1
billion, and average non-interest bearing demand deposits totaled
$3.0 billion, compared to $3.1 billion for the fourth quarter. The
mix of transaction deposits to total deposits was 87.1% compared to
88.9% at December 31, 2022.
Non-Interest IncomeNon-interest
income increased $0.5 million during the first quarter to $14.7
million. Mortgage banking income increased $0.5 million compared to
the prior quarter, and other non-interest income increased $0.6
million. These increases were partially offset by a $0.6 million
decrease in service charges and bank card fees due to
seasonality.
Non-Interest
ExpenseNon-interest expense totaled $58.3 million, a
decrease of $9.4 million from the prior quarter. Excluding the
impact of $6.8 million of non-recurring acquisition-related
expenses in the fourth quarter, non-interest expense decreased $2.6
million. Salaries and benefits decreased $2.5 million due to
payroll tax credits realized in the first quarter 2023, and
professional fees decreased $1.2 million. Partially offsetting
these decreases was a $1.1 million increase in other non-interest
expense largely due to higher FDIC deposit insurance expense as a
result of an increase in the FDIC assessment rate effective January
2023.
The efficiency ratio improved 875 basis points
to 53.2% at March 31, 2023, compared to 62.0% at December 31, 2022.
The fully taxable equivalent efficiency ratio improved 246 basis
points to 51.3% at March 31, 2023, adjusting for intangible asset
amortization and non-recurring acquisition-related expenses in the
prior quarter.
Income tax expense totaled $10.1 million during
the first quarter, compared to $3.0 million in the prior quarter.
The increase in income tax expense was due to an increase in
pre-tax income. The effective tax rate was 20.0% and 15.0% for the
first and fourth quarters, respectively.
CapitalCapital ratios continue
to be strong and in excess of federal bank regulatory agency “well
capitalized” thresholds. The Tier 1 leverage ratio totaled 9.46% at
March 31, 2023, and the common equity tier 1 capital ratio totaled
11.32% at March 31, 2023. Shareholders’ equity totaled $1.1 billion
at March 31, 2023 increasing $41.5 million largely due to higher
retained earnings and a decrease in accumulated other comprehensive
loss.
Common book value per share increased $1.08 to
$30.12 at March 31, 2023. Tangible common book value per share
increased $1.13 to $21.76 at March 31, 2023 as this quarter’s
earnings outpaced the quarterly dividend and benefitted from a
$0.25 per share decrease in accumulated other comprehensive
loss.
Year-Over-Year
Review(All comparisons refer to the first quarter
2022, except as noted)
Net income totaled $40.3 million or $1.06 per
diluted share, compared to $18.4 million or $0.60 per diluted share
for the first quarter of 2022. The quarter’s increase over the same
period prior year was driven by strong net interest income due to
increases in the Federal Reserve’s interest rates and strong
organic and acquired loan growth. Fully taxable equivalent
pre-provision net revenue increased $29.7 million, or 129.6%, to
$52.7 million. The return on average tangible assets was 1.80%,
compared to 1.07% in the same period prior year, and the return on
average tangible common equity was 20.86%, compared to 10.31%.
Fully taxable equivalent net interest income
totaled $96.3 million, an increase of $48.3 million or 100.7%.
Average earning assets increased $2.2 billion, or 32.8%, including
average originated loan growth of $1.2 billion and average acquired
loan growth of $1.6 billion. The fully taxable equivalent net
interest margin widened 149 basis points to 4.39%, benefitting from
a 216 basis point increase in earning asset yields to 5.24%. Total
interest bearing liabilities increased $1.5 billion to $5.4 billion
at March 31, 2023, and the cost of funds totaled 0.90%, compared to
0.19% in the same period prior year.
Loans outstanding totaled $7.3 billion,
increasing $2.7 billion or 57.1%, and included $1.7 billion of
loans acquired through the Rock Canyon Bank and Bank of Jackson
Hole acquisitions in 2022. New loan fundings over the trailing 12
months totaled $2.0 billion, led by commercial loan fundings of
$1.1 billion.
The Company recorded $0.9 million of provision
expense for credit loss during the first quarter 2023, compared to
a provision release of $0.3 million in the same period prior year.
The current quarter’s provision expense was driven by loan growth.
Annualized net charge-offs decreased four basis points to 0.01% of
average total loans during the first quarter 2023. Non-performing
loans to total loans improved 11 basis points to 0.13%, and
non-performing assets to total loans and OREO improved 17 basis
points to 0.18% at March 31, 2023. The allowance for credit losses
totaled 1.23% of total loans, compared to 1.04% at March 31,
2022.
Average total deposits increased $1.5 billion or
24.2% to $7.7 billion, primarily due to the 2022 acquisitions.
Average transaction deposits increased $1.4 billion or 26.1%, and
average non-interest bearing demand deposits increased $570.4
million or 23.4%. The mix of transaction deposits to total deposits
totaled 87.1%, compared to 87.4% at March 31, 2022, and the mix of
non-interest bearing demand deposits to total deposits totaled
38.5%, compared to 40.1% at March 31, 2022.
Non-interest income totaled $14.7 million, a
decrease of $4.4 million or 23.0%, largely driven by $6.5 million
of lower mortgage banking income due to lower refinance activity,
as well as competition driving tighter gain on sale margins.
Service charges and bank card fees increased a combined $0.9
million compared to the same period prior year. Other non-interest
income increased $1.9 million and included $0.5 million of trust
income.
Non-interest expense totaled $58.3 million, an
increase of $14.2 million, or 32.2%, largely driven by an increase
in core operating expenses driven by our 2022 acquisitions.
Included in other non-interest expense is $1.7 million higher FDIC
deposit insurance expense as a result of our recent acquisitions
and an increase in the FDIC assessment rate effective January
2023.
Income tax expense totaled $10.1 million, an
increase of $6.5 million from the first quarter last year, driven
by higher pre-tax income.
Conference CallManagement will
host a conference call to review the results at 11:00 a.m. Eastern
Time on Thursday, April 20, 2023. Interested parties may listen to
this call by dialing (888) 256-1007 using the participant passcode
of 7825479 and asking for the NBHC Q1 2023 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, Bancshares of Jackson Hole Incorporated,
or Cambr Solutions, LLC businesses or fully realizing cost savings
and other benefits; business disruption following the mergers;
ability to execute our business strategy (including our digital
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 our bank subsidiaries; 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; 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.comNATIONAL
BANK HOLDINGS CORPORATIONFINANCIAL
SUMMARYConsolidated Statements of Operations
(Unaudited)(Dollars in thousands, except share and per
share data)
|
For the three months ended |
|
March 31, |
|
December 31, |
|
March 31, |
|
2023 |
|
2022 |
|
2022 |
|
Total interest and dividend income |
$ |
113,533 |
|
$ |
103,958 |
|
$ |
49,525 |
|
Total interest expense |
|
18,644 |
|
|
8,892 |
|
|
2,864 |
|
Net interest income |
|
94,889 |
|
|
95,066 |
|
|
46,661 |
|
Taxable equivalent
adjustment |
|
1,414 |
|
|
1,454 |
|
|
1,313 |
|
Net interest income FTE(1) |
|
96,303 |
|
|
96,520 |
|
|
47,974 |
|
Provision expense (release)
for credit losses |
|
900 |
|
|
21,869 |
|
|
(322 |
) |
Net interest income after provision for credit losses FTE(1) |
|
95,403 |
|
|
74,651 |
|
|
48,296 |
|
Non-interest income: |
|
|
|
|
|
|
|
|
Service charges |
|
4,101 |
|
|
4,365 |
|
|
3,710 |
|
Bank card fees |
|
4,637 |
|
|
4,954 |
|
|
4,123 |
|
Mortgage banking income |
|
3,216 |
|
|
2,686 |
|
|
9,666 |
|
Other non-interest income |
|
2,711 |
|
|
2,133 |
|
|
847 |
|
Banking center consolidation-related income |
|
— |
|
|
— |
|
|
708 |
|
Total non-interest income |
|
14,665 |
|
|
14,138 |
|
|
19,054 |
|
Non-interest expense: |
|
|
|
|
|
|
|
|
Salaries and benefits |
|
32,989 |
|
|
36,319 |
|
|
29,336 |
|
Occupancy and equipment |
|
9,073 |
|
|
10,409 |
|
|
6,396 |
|
Professional fees |
|
2,590 |
|
|
6,308 |
|
|
814 |
|
Data processing |
|
3,752 |
|
|
4,924 |
|
|
2,381 |
|
Other non-interest expense |
|
8,525 |
|
|
8,339 |
|
|
4,859 |
|
Core deposit and wealth management intangible assets
amortization |
|
1,363 |
|
|
1,363 |
|
|
296 |
|
Total non-interest expense |
|
58,292 |
|
|
67,662 |
|
|
44,082 |
|
|
|
|
|
|
|
|
|
|
Income before income taxes
FTE(1) |
|
51,776 |
|
|
21,127 |
|
|
23,268 |
|
Taxable equivalent
adjustment |
|
1,414 |
|
|
1,454 |
|
|
1,313 |
|
Income before income
taxes |
|
50,362 |
|
|
19,673 |
|
|
21,955 |
|
Income tax expense |
|
10,079 |
|
|
2,952 |
|
|
3,603 |
|
Net income |
$ |
40,283 |
|
$ |
16,721 |
|
$ |
18,352 |
|
Earnings per share -
basic |
$ |
1.06 |
|
$ |
0.44 |
|
$ |
0.61 |
|
Earnings per share -
diluted |
|
1.06 |
|
|
0.44 |
|
|
0.60 |
|
(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)
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
ASSETS |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
369,705 |
|
|
$ |
195,505 |
|
|
$ |
786,385 |
|
Investment securities available-for-sale |
|
695,485 |
|
|
|
706,289 |
|
|
|
790,384 |
|
Investment securities held-to-maturity |
|
637,921 |
|
|
|
651,527 |
|
|
|
567,055 |
|
Non-marketable securities |
|
120,733 |
|
|
|
89,049 |
|
|
|
54,568 |
|
Loans |
|
7,345,298 |
|
|
|
7,220,469 |
|
|
|
4,674,238 |
|
Allowance for credit losses |
|
(90,343 |
) |
|
|
(89,553 |
) |
|
|
(48,810 |
) |
Loans, net |
|
7,254,955 |
|
|
|
7,130,916 |
|
|
|
4,625,428 |
|
Loans held for sale |
|
24,594 |
|
|
|
22,767 |
|
|
|
90,152 |
|
Other real estate owned |
|
3,458 |
|
|
|
3,731 |
|
|
|
5,063 |
|
Premises and equipment, net |
|
140,417 |
|
|
|
136,111 |
|
|
|
95,133 |
|
Goodwill |
|
279,132 |
|
|
|
279,132 |
|
|
|
115,027 |
|
Intangible assets, net |
|
58,619 |
|
|
|
59,887 |
|
|
|
13,505 |
|
Other assets |
|
332,204 |
|
|
|
298,329 |
|
|
|
198,812 |
|
Total assets |
$ |
9,917,223 |
|
|
$ |
9,573,243 |
|
|
$ |
7,341,512 |
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
Non-interest bearing demand deposits |
$ |
2,920,891 |
|
|
$ |
3,134,716 |
|
|
$ |
2,554,820 |
|
Interest bearing demand deposits |
|
1,098,172 |
|
|
|
913,852 |
|
|
|
595,137 |
|
Savings and money market |
|
2,584,128 |
|
|
|
2,950,658 |
|
|
|
2,412,081 |
|
Total transaction deposits |
|
6,603,191 |
|
|
|
6,999,226 |
|
|
|
5,562,038 |
|
Time deposits |
|
978,489 |
|
|
|
873,400 |
|
|
|
802,772 |
|
Total deposits |
|
7,581,680 |
|
|
|
7,872,626 |
|
|
|
6,364,810 |
|
Securities sold under agreements to repurchase |
|
21,492 |
|
|
|
20,214 |
|
|
|
24,744 |
|
Long-term debt |
|
53,968 |
|
|
|
53,890 |
|
|
|
39,505 |
|
Federal Home Loan Bank advances |
|
1,000,000 |
|
|
|
385,000 |
|
|
|
— |
|
Other liabilities |
|
126,356 |
|
|
|
149,311 |
|
|
|
92,238 |
|
Total liabilities |
|
8,783,496 |
|
|
|
8,481,041 |
|
|
|
6,521,297 |
|
Shareholders' equity: |
|
|
|
|
|
|
|
|
Common stock |
|
515 |
|
|
|
515 |
|
|
|
515 |
|
Additional paid in capital |
|
1,160,436 |
|
|
|
1,159,508 |
|
|
|
1,014,332 |
|
Retained earnings |
|
361,440 |
|
|
|
330,721 |
|
|
|
301,220 |
|
Treasury stock |
|
(310,037 |
) |
|
|
(310,338 |
) |
|
|
(457,219 |
) |
Accumulated other comprehensive loss, net of tax |
|
(78,627 |
) |
|
|
(88,204 |
) |
|
|
(38,633 |
) |
Total shareholders' equity |
|
1,133,727 |
|
|
|
1,092,202 |
|
|
|
820,215 |
|
Total liabilities and shareholders' equity |
$ |
9,917,223 |
|
|
$ |
9,573,243 |
|
|
$ |
7,341,512 |
|
SHARE
DATA |
|
|
|
|
|
|
|
|
Average basic shares
outstanding |
|
37,785,488 |
|
|
|
37,762,853 |
|
|
|
30,120,195 |
|
Average diluted shares
outstanding |
|
38,074,973 |
|
|
|
38,100,155 |
|
|
|
30,479,261 |
|
Ending shares outstanding |
|
37,641,381 |
|
|
|
37,608,519 |
|
|
|
30,008,781 |
|
Common book value per
share |
$ |
30.12 |
|
|
$ |
29.04 |
|
|
$ |
27.33 |
|
Tangible common book value per
share(1)(non-GAAP) |
|
21.76 |
|
|
|
20.63 |
|
|
|
23.64 |
|
Tangible common book value per share, excluding accumulated other
comprehensive loss(1)(non-GAAP) |
|
23.85 |
|
|
|
22.98 |
|
|
|
24.93 |
|
CAPITAL
RATIOS |
|
|
|
|
|
|
|
|
Average equity to average
assets |
|
11.63% |
|
|
|
11.47% |
|
|
|
11.74% |
|
Tangible common equity to
tangible assets(1) |
|
8.53% |
|
|
|
8.38% |
|
|
|
9.81% |
|
Tier 1 leverage ratio |
|
9.46% |
|
|
|
9.29% |
|
|
|
10.48% |
|
Common equity tier 1
risk-based capital ratio |
|
11.32% |
|
|
|
10.54% |
|
|
|
13.94% |
|
Tier 1 risk-based capital
ratio |
|
11.32% |
|
|
|
10.54% |
|
|
|
13.94% |
|
Total risk-based capital
ratio |
|
13.17% |
|
|
|
12.29% |
|
|
|
15.56% |
|
(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
|
|
|
|
|
March 31, 2023 |
|
|
|
March 31, 2023 |
|
|
|
|
|
vs. December 31, 2022 |
|
|
|
vs. March 31, 2022 |
|
March 31, 2023 |
|
December 31, 2022 |
|
% Change |
|
March 31, 2022 |
|
% Change |
Originated: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
1,818,415 |
|
$ |
1,841,313 |
|
(1.2 |
)% |
|
$ |
1,551,447 |
|
17.2 |
% |
Municipal and non-profit |
|
979,801 |
|
|
959,305 |
|
2.1 |
% |
|
|
949,125 |
|
3.2 |
% |
Owner-occupied commercial real estate |
|
674,231 |
|
|
656,361 |
|
2.7 |
% |
|
|
554,345 |
|
21.6 |
% |
Food and agribusiness |
|
270,197 |
|
|
284,714 |
|
(5.1 |
)% |
|
|
205,899 |
|
31.2 |
% |
Total commercial |
|
3,742,644 |
|
|
3,741,693 |
|
0.0 |
% |
|
|
3,260,816 |
|
14.8 |
% |
Commercial real estate non-owner occupied |
|
979,150 |
|
|
841,657 |
|
16.3 |
% |
|
|
634,928 |
|
54.2 |
% |
Residential real estate |
|
864,544 |
|
|
827,030 |
|
4.5 |
% |
|
|
626,763 |
|
37.9 |
% |
Consumer |
|
16,766 |
|
|
16,986 |
|
(1.3 |
)% |
|
|
17,321 |
|
(3.2 |
)% |
Total originated |
|
5,603,104 |
|
|
5,427,366 |
|
3.2 |
% |
|
|
4,539,828 |
|
23.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
172,368 |
|
|
183,522 |
|
(6.1 |
)% |
|
|
15,800 |
|
>100% |
Municipal and non-profit |
|
316 |
|
|
321 |
|
(1.6 |
)% |
|
|
335 |
|
(5.7 |
)% |
Owner-occupied commercial real estate |
|
248,883 |
|
|
256,979 |
|
(3.2 |
)% |
|
|
21,329 |
|
>100% |
Food and agribusiness |
|
64,739 |
|
|
69,265 |
|
(6.5 |
)% |
|
|
2,976 |
|
>100% |
Total commercial |
|
486,306 |
|
|
510,087 |
|
(4.7 |
)% |
|
|
40,440 |
|
>100% |
Commercial real estate non-owner occupied |
|
845,374 |
|
|
854,393 |
|
(1.1 |
)% |
|
|
46,431 |
|
>100% |
Residential real estate |
|
407,254 |
|
|
424,251 |
|
(4.0 |
)% |
|
|
47,314 |
|
>100% |
Consumer |
|
3,260 |
|
|
4,372 |
|
(25.4 |
)% |
|
|
225 |
|
>100% |
Total acquired |
|
1,742,194 |
|
|
1,793,103 |
|
(2.8 |
)% |
|
|
134,410 |
|
>100% |
Total loans |
$ |
7,345,298 |
|
$ |
7,220,469 |
|
1.7 |
% |
|
$ |
4,674,238 |
|
57.1 |
% |
Loan Fundings(1)
|
First quarter |
|
Fourth quarter |
|
Third quarter |
|
Second quarter |
|
First quarter |
|
2023 |
|
|
2022 |
|
2022 |
|
2022 |
|
|
2022 |
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
107,013 |
|
|
$ |
177,693 |
|
$ |
201,106 |
|
$ |
152,550 |
|
|
$ |
169,168 |
Municipal and non-profit |
|
22,526 |
|
|
|
20,393 |
|
|
20,845 |
|
|
81,428 |
|
|
|
49,906 |
Owner occupied commercial real estate |
|
33,912 |
|
|
|
40,912 |
|
|
65,125 |
|
|
78,905 |
|
|
|
67,597 |
Food and agribusiness |
|
(6,564 |
) |
|
|
28,518 |
|
|
76,293 |
|
|
(4,186 |
) |
|
|
18,620 |
Total commercial |
|
156,887 |
|
|
|
267,516 |
|
|
363,369 |
|
|
308,697 |
|
|
|
305,291 |
Commercial real estate
non-owner occupied |
|
185,875 |
|
|
|
133,271 |
|
|
166,739 |
|
|
88,612 |
|
|
|
63,416 |
Residential real estate |
|
49,406 |
|
|
|
95,067 |
|
|
99,951 |
|
|
93,220 |
|
|
|
49,040 |
Consumer |
|
1,717 |
|
|
|
1,396 |
|
|
1,505 |
|
|
1,989 |
|
|
|
1,904 |
Total |
$ |
393,885 |
|
|
$ |
497,250 |
|
$ |
631,564 |
|
$ |
492,518 |
|
|
$ |
419,651 |
(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 ($7,096), $96,903, $124,834, $21,762
and $66,430 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 |
|
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
|
Average |
|
|
|
|
Average |
|
Average |
|
|
|
|
Average |
|
Average |
|
|
|
|
Average |
|
|
balance |
|
Interest |
|
rate |
|
balance |
|
Interest |
|
rate |
|
balance |
|
Interest |
|
rate |
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated loans FTE(1)(2) |
|
$ |
5,514,704 |
|
|
$ |
79,167 |
|
|
5.82 |
% |
|
$ |
5,269,227 |
|
|
$ |
70,536 |
|
|
5.31 |
% |
|
$ |
4,361,919 |
|
|
$ |
42,085 |
|
|
3.91 |
% |
Acquired loans |
|
|
1,771,224 |
|
|
|
27,023 |
|
|
6.19 |
% |
|
|
1,790,476 |
|
|
|
26,508 |
|
|
5.87 |
% |
|
|
147,638 |
|
|
|
2,568 |
|
|
7.05 |
% |
Loans held for sale |
|
|
21,753 |
|
|
|
346 |
|
|
6.45 |
% |
|
|
24,381 |
|
|
|
375 |
|
|
6.10 |
% |
|
|
93,639 |
|
|
|
756 |
|
|
3.27 |
% |
Investment securities available-for-sale |
|
|
810,257 |
|
|
|
3,989 |
|
|
1.97 |
% |
|
|
841,762 |
|
|
|
4,187 |
|
|
1.99 |
% |
|
|
751,646 |
|
|
|
2,849 |
|
|
1.52 |
% |
Investment securities held-to-maturity |
|
|
646,646 |
|
|
|
2,871 |
|
|
1.78 |
% |
|
|
661,992 |
|
|
|
2,818 |
|
|
1.70 |
% |
|
|
589,830 |
|
|
|
2,012 |
|
|
1.36 |
% |
Other securities |
|
|
51,366 |
|
|
|
898 |
|
|
6.99 |
% |
|
|
26,203 |
|
|
|
402 |
|
|
6.14 |
% |
|
|
14,590 |
|
|
|
209 |
|
|
5.73 |
% |
Interest earning deposits |
|
|
86,790 |
|
|
|
653 |
|
|
3.05 |
% |
|
|
115,441 |
|
|
|
586 |
|
|
2.01 |
% |
|
|
743,239 |
|
|
|
359 |
|
|
0.20 |
% |
Total interest earning assets
FTE(2) |
|
$ |
8,902,740 |
|
|
$ |
114,947 |
|
|
5.24 |
% |
|
$ |
8,729,482 |
|
|
$ |
105,412 |
|
|
4.79 |
% |
|
$ |
6,702,501 |
|
|
$ |
50,838 |
|
|
3.08 |
% |
Cash and due from banks |
|
$ |
118,607 |
|
|
|
|
|
|
|
|
$ |
126,107 |
|
|
|
|
|
|
|
|
$ |
79,383 |
|
|
|
|
|
|
|
Other assets |
|
|
687,940 |
|
|
|
|
|
|
|
|
|
673,679 |
|
|
|
|
|
|
|
|
|
442,098 |
|
|
|
|
|
|
|
Allowance for credit
losses |
|
|
(89,831 |
) |
|
|
|
|
|
|
|
|
(85,638 |
) |
|
|
|
|
|
|
|
|
(49,584 |
) |
|
|
|
|
|
|
Total assets |
|
$ |
9,619,456 |
|
|
|
|
|
|
|
|
$ |
9,443,630 |
|
|
|
|
|
|
|
|
$ |
7,174,398 |
|
|
|
|
|
|
|
Interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing demand, savings and money market deposits |
|
$ |
3,766,203 |
|
|
$ |
7,759 |
|
|
0.84 |
% |
|
$ |
3,946,573 |
|
|
$ |
4,587 |
|
|
0.46 |
% |
|
$ |
2,936,158 |
|
|
$ |
1,437 |
|
|
0.20 |
% |
Time deposits |
|
|
922,521 |
|
|
|
3,290 |
|
|
1.45 |
% |
|
|
892,122 |
|
|
|
2,048 |
|
|
0.91 |
% |
|
|
821,814 |
|
|
|
1,094 |
|
|
0.54 |
% |
Securities sold under agreements to repurchase |
|
|
20,045 |
|
|
|
6 |
|
|
0.12 |
% |
|
|
18,515 |
|
|
|
23 |
|
|
0.49 |
% |
|
|
22,770 |
|
|
|
7 |
|
|
0.12 |
% |
Long-term debt |
|
|
53,918 |
|
|
|
518 |
|
|
3.90 |
% |
|
|
53,530 |
|
|
|
539 |
|
|
3.99 |
% |
|
|
39,489 |
|
|
|
326 |
|
|
3.35 |
% |
Federal Home Loan Bank advances |
|
|
597,833 |
|
|
|
7,071 |
|
|
4.80 |
% |
|
|
162,146 |
|
|
|
1,695 |
|
|
4.15 |
% |
|
|
— |
|
|
|
— |
|
|
0.00 |
% |
Total interest bearing liabilities |
|
$ |
5,360,520 |
|
|
$ |
18,644 |
|
|
1.41 |
% |
|
$ |
5,072,886 |
|
|
$ |
8,892 |
|
|
0.70 |
% |
|
$ |
3,820,231 |
|
|
$ |
2,864 |
|
|
0.30 |
% |
Demand deposits |
|
$ |
3,004,643 |
|
|
|
|
|
|
|
|
$ |
3,142,296 |
|
|
|
|
|
|
|
|
$ |
2,434,198 |
|
|
|
|
|
|
|
Other liabilities |
|
|
135,175 |
|
|
|
|
|
|
|
|
|
145,608 |
|
|
|
|
|
|
|
|
|
78,027 |
|
|
|
|
|
|
|
Total liabilities |
|
|
8,500,338 |
|
|
|
|
|
|
|
|
|
8,360,790 |
|
|
|
|
|
|
|
|
|
6,332,456 |
|
|
|
|
|
|
|
Shareholders' equity |
|
|
1,119,118 |
|
|
|
|
|
|
|
|
|
1,082,840 |
|
|
|
|
|
|
|
|
|
841,942 |
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
9,619,456 |
|
|
|
|
|
|
|
|
$ |
9,443,630 |
|
|
|
|
|
|
|
|
$ |
7,174,398 |
|
|
|
|
|
|
|
Net interest income
FTE(2) |
|
|
|
|
$ |
96,303 |
|
|
|
|
|
|
|
$ |
96,520 |
|
|
|
|
|
|
|
$ |
47,974 |
|
|
|
Interest rate spread
FTE(2) |
|
|
|
|
|
|
|
|
3.83 |
% |
|
|
|
|
|
|
|
|
4.09 |
% |
|
|
|
|
|
|
|
|
2.78 |
% |
Net interest earning
assets |
|
$ |
3,542,220 |
|
|
|
|
|
|
|
|
$ |
3,656,596 |
|
|
|
|
|
|
|
|
$ |
2,882,270 |
|
|
|
|
|
|
|
Net interest margin
FTE(2) |
|
|
|
|
|
|
|
|
4.39 |
% |
|
|
|
|
|
|
|
|
4.39 |
% |
|
|
|
|
|
|
|
|
2.90 |
% |
Average transaction
deposits |
|
$ |
6,770,846 |
|
|
|
|
|
|
|
|
$ |
7,088,869 |
|
|
|
|
|
|
|
|
$ |
5,370,356 |
|
|
|
|
|
|
|
Average total deposits |
|
|
7,693,367 |
|
|
|
|
|
|
|
|
|
7,980,991 |
|
|
|
|
|
|
|
|
|
6,192,170 |
|
|
|
|
|
|
|
Ratio of average interest earning assets to average interest
bearing liabilities |
|
|
166.08 |
% |
|
|
|
|
|
|
|
|
172.08 |
% |
|
|
|
|
|
|
|
|
175.45 |
% |
|
|
|
|
|
|
(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 $1,414, $1,454 and $1,313
for the three months ended March 31, 2023, December 31, 2022 and
March 31, 2022, 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 |
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
Beginning allowance for credit losses |
$ |
89,553 |
|
|
$ |
65,623 |
|
|
$ |
49,694 |
|
Acquisition Day 1 CECL
provision expense |
|
— |
|
|
|
16,027 |
|
|
|
— |
|
PCD allowance for credit loss
at acquisition |
|
— |
|
|
|
3,764 |
|
|
|
— |
|
Charge-offs |
|
(325 |
) |
|
|
(849 |
) |
|
|
(634 |
) |
Recoveries |
|
65 |
|
|
|
129 |
|
|
|
75 |
|
Provision expense (release)
for credit losses |
|
1,050 |
|
|
|
4,859 |
|
|
|
(325 |
) |
Ending allowance for credit
losses ("ACL") |
$ |
90,343 |
|
|
$ |
89,553 |
|
|
$ |
48,810 |
|
Ratio of annualized net charge-offs to average total loans during
the period |
|
0.01% |
|
|
|
0.04% |
|
|
|
0.05% |
|
Ratio of ACL to total loans
outstanding at period end |
|
1.23% |
|
|
|
1.24% |
|
|
|
1.04% |
|
Ratio of ACL to total
non-performing loans at period end |
|
946.40% |
|
|
|
542.35% |
|
|
|
440.01% |
|
Total loans |
$ |
7,345,298 |
|
|
$ |
7,220,469 |
|
|
$ |
4,674,238 |
|
Average total loans during the
period |
|
7,257,639 |
|
|
|
7,029,021 |
|
|
|
4,520,205 |
|
Total non-performing
loans |
|
9,546 |
|
|
|
16,512 |
|
|
|
11,093 |
|
Past Due and Non-accrual Loans
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
Loans 30-89 days past due and still accruing interest |
$ |
2,308 |
|
|
$ |
2,986 |
|
|
$ |
3,034 |
|
Loans 90 days past due and
still accruing interest |
|
185 |
|
|
|
95 |
|
|
|
389 |
|
Non-accrual loans |
|
9,546 |
|
|
|
16,512 |
|
|
|
11,093 |
|
Total past due and non-accrual
loans |
$ |
12,039 |
|
|
$ |
19,593 |
|
|
$ |
14,516 |
|
Total 90 days past due and still accruing interest and non-accrual
loans to total loans |
|
0.13% |
|
|
|
0.23% |
|
|
|
0.25% |
|
Asset Quality Data
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
Non-performing loans |
$ |
9,546 |
|
|
$ |
16,512 |
|
|
$ |
11,093 |
|
OREO |
|
3,458 |
|
|
|
3,731 |
|
|
|
5,063 |
|
Total non-performing
assets |
$ |
13,004 |
|
|
$ |
20,243 |
|
|
$ |
16,156 |
|
Accruing modified loans |
$ |
4,154 |
|
|
$ |
4,654 |
|
|
$ |
4,979 |
|
Total non-performing loans to
total loans |
|
0.13% |
|
|
|
0.23% |
|
|
|
0.24% |
|
Total non-performing assets to
total loans and OREO |
|
0.18% |
|
|
|
0.28% |
|
|
|
0.35% |
|
NATIONAL BANK HOLDINGS CORPORATIONKey
Metrics(1)
|
As of and for the three months ended |
|
March 31, |
|
December 31, |
|
March 31, |
|
2023 |
|
|
2022 |
|
|
2022 |
|
Return on average assets |
|
1.70% |
|
|
|
0.70% |
|
|
|
1.04% |
|
Return on average tangible
assets(2) |
|
1.80% |
|
|
|
0.77% |
|
|
|
1.07% |
|
Return on average tangible
assets, adjusted(2) |
|
1.80% |
|
|
|
1.55% |
|
|
|
1.07% |
|
Return on average equity |
|
14.60% |
|
|
|
6.13% |
|
|
|
8.84% |
|
Return on average tangible
common equity(2) |
|
20.86% |
|
|
|
9.17% |
|
|
|
10.31% |
|
Return on average tangible
common equity, adjusted(2) |
|
20.86% |
|
|
|
18.37% |
|
|
|
10.31% |
|
Loan to deposit ratio (end of
period) |
|
96.88% |
|
|
|
91.72% |
|
|
|
73.44% |
|
Non-interest bearing deposits
to total deposits (end of period) |
|
38.53% |
|
|
|
39.82% |
|
|
|
40.14% |
|
Net interest margin(3) |
|
4.32% |
|
|
|
4.32% |
|
|
|
2.82% |
|
Net interest margin
FTE(2)(3) |
|
4.39% |
|
|
|
4.39% |
|
|
|
2.90% |
|
Interest rate spread
FTE(2)(4) |
|
3.83% |
|
|
|
4.09% |
|
|
|
2.78% |
|
Yield on earning
assets(5) |
|
5.17% |
|
|
|
4.72% |
|
|
|
3.00% |
|
Yield on earning assets
FTE(2)(5) |
|
5.24% |
|
|
|
4.79% |
|
|
|
3.08% |
|
Cost of interest bearing
liabilities |
|
1.41% |
|
|
|
0.70% |
|
|
|
0.30% |
|
Cost of deposits |
|
0.58% |
|
|
|
0.33% |
|
|
|
0.17% |
|
Non-interest income to total
revenue FTE(2) |
|
13.22% |
|
|
|
12.78% |
|
|
|
28.43% |
|
Non-interest expense to
average assets |
|
2.46% |
|
|
|
2.84% |
|
|
|
2.49% |
|
Efficiency ratio |
|
53.21% |
|
|
|
61.96% |
|
|
|
67.08% |
|
Efficiency ratio excluding CDI and WMI amortization FTE(2) |
|
51.30% |
|
|
|
53.76% |
|
|
|
65.32% |
|
Pre-provision net revenue |
$ |
51,262 |
|
|
$ |
41,542 |
|
|
$ |
21,633 |
|
Pre-provision net revenue
FTE(2) |
|
52,676 |
|
|
|
42,996 |
|
|
|
22,946 |
|
Pre-provision net revenue FTE,
adjusted(2) |
|
52,676 |
|
|
|
49,807 |
|
|
|
22,946 |
|
|
|
|
|
|
|
|
|
|
Total Loans Asset
Quality Data(6)(7)(8) |
|
|
|
|
|
|
|
|
Non-performing loans to total
loans |
|
0.13% |
|
|
|
0.23% |
|
|
|
0.24% |
|
Non-performing assets to total
loans and OREO |
|
0.18% |
|
|
|
0.28% |
|
|
|
0.35% |
|
Allowance for credit losses to
total loans |
|
1.23% |
|
|
|
1.24% |
|
|
|
1.04% |
|
Allowance for credit losses to
non-performing loans |
|
946.40% |
|
|
|
542.35% |
|
|
|
440.01% |
|
Net charge-offs to average
loans |
|
0.01% |
|
|
|
0.04% |
|
|
|
0.05% |
|
(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 modified loans on non-accrual. |
(7 |
) |
|
Non-performing assets include
non-performing loans and other real estate owned. |
(8 |
) |
|
Total loans are net of unearned
discounts and fees. |
NATIONAL BANK HOLDINGS
CORPORATIONNON-GAAP FINANCIAL MEASURES AND
RECONCILIATIONS(Dollars in thousands, except share and per
share data)
Tangible Common Book Value Ratios
|
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
Total shareholders' equity |
|
$ |
1,133,727 |
|
|
$ |
1,092,202 |
|
|
$ |
820,215 |
|
Less: goodwill, core deposit (“CDI”) and wealth management (“WMI”)
intangible assets, net |
|
|
(325,828 |
) |
|
|
(327,191 |
) |
|
|
(121,096 |
) |
Add: deferred tax liability
related to goodwill |
|
|
11,212 |
|
|
|
10,984 |
|
|
|
10,298 |
|
Tangible common equity
(non-GAAP) |
|
$ |
819,111 |
|
|
$ |
775,995 |
|
|
$ |
709,417 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
9,917,223 |
|
|
$ |
9,573,243 |
|
|
$ |
7,341,512 |
|
Less: goodwill, CDI and WMI
assets, net |
|
|
(325,828 |
) |
|
|
(327,191 |
) |
|
|
(121,096 |
) |
Add: deferred tax liability
related to goodwill |
|
|
11,212 |
|
|
|
10,984 |
|
|
|
10,298 |
|
Tangible assets
(non-GAAP) |
|
$ |
9,602,607 |
|
|
$ |
9,257,036 |
|
|
$ |
7,230,714 |
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity
to tangible assets calculations: |
|
|
|
|
|
|
|
|
|
Total shareholders' equity to
total assets |
|
|
11.43% |
|
|
|
11.41% |
|
|
|
11.17% |
|
Less: impact of goodwill, CDI
and WMI assets, net |
|
|
(2.90)% |
|
|
|
(3.03)% |
|
|
|
(1.36)% |
|
Tangible common equity to
tangible assets (non-GAAP) |
|
|
8.53% |
|
|
|
8.38% |
|
|
|
9.81% |
|
|
|
|
|
|
|
|
|
|
|
Tangible common book
value per share calculations: |
|
|
|
|
|
|
|
|
|
Tangible common equity
(non-GAAP) |
|
$ |
819,111 |
|
|
$ |
775,995 |
|
|
$ |
709,417 |
|
Divided by: ending shares
outstanding |
|
|
37,641,381 |
|
|
|
37,608,519 |
|
|
|
30,008,781 |
|
Tangible common book value per
share (non-GAAP) |
|
$ |
21.76 |
|
|
$ |
20.63 |
|
|
$ |
23.64 |
|
|
|
|
|
|
|
|
|
|
|
Tangible common book
value per share, excluding accumulated other comprehensive loss
calculations: |
|
|
|
|
|
|
|
|
|
Tangible common equity
(non-GAAP) |
|
$ |
819,111 |
|
|
$ |
775,995 |
|
|
$ |
709,417 |
|
Accumulated other
comprehensive loss, net of tax |
|
|
78,627 |
|
|
|
88,204 |
|
|
|
38,633 |
|
Tangible common book value, excluding accumulated other
comprehensive loss, net of tax (non-GAAP) |
|
|
897,738 |
|
|
|
864,199 |
|
|
|
748,050 |
|
Divided by: ending shares
outstanding |
|
|
37,641,381 |
|
|
|
37,608,519 |
|
|
|
30,008,781 |
|
Tangible common book value per share, excluding accumulated other
comprehensive loss, net of tax (non-GAAP) |
|
$ |
23.85 |
|
|
$ |
22.98 |
|
|
$ |
24.93 |
|
NATIONAL BANK HOLDINGS CORPORATION(Dollars in
thousands, except share and per share data)
Return on Average Tangible Assets and Return on Average
Tangible Equity
|
|
As of and for the three months ended |
|
|
March 31, |
|
December31, |
|
March31, |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
Net income |
|
$ |
40,283 |
|
|
$ |
16,721 |
|
|
$ |
18,352 |
|
Add: impact of CDI and WMI
amortization expense, after tax |
|
|
1,049 |
|
|
|
1,049 |
|
|
|
227 |
|
Net income excluding the impact of CDI and WMI amortization
expense, after tax (non-GAAP) |
|
$ |
41,332 |
|
|
$ |
17,770 |
|
|
$ |
18,579 |
|
|
|
|
|
|
|
|
|
|
|
Net income excluding the
impact of CDI and WMI amortization expense, after tax |
|
$ |
41,332 |
|
|
$ |
17,770 |
|
|
$ |
18,579 |
|
Add: acquisition-related
adjustments, after tax (non-GAAP)(1) |
|
|
— |
|
|
|
17,825 |
|
|
|
— |
|
Net income adjusted for the impact of CDI and WMI amortization
expense and acquisition-related expenses, after tax
(non-GAAP)(1) |
|
$ |
41,332 |
|
|
$ |
35,595 |
|
|
$ |
18,579 |
|
|
|
|
|
|
|
|
|
|
|
Average assets |
|
$ |
9,619,456 |
|
|
$ |
9,443,630 |
|
|
$ |
7,174,398 |
|
Less: average goodwill, CDI and WMI assets, net of deferred tax
liability related to goodwill |
|
|
(315,493 |
) |
|
|
(314,017 |
) |
|
|
(110,973 |
) |
Average tangible assets
(non-GAAP) |
|
$ |
9,303,963 |
|
|
$ |
9,129,613 |
|
|
$ |
7,063,425 |
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity |
|
$ |
1,119,118 |
|
|
$ |
1,082,840 |
|
|
$ |
841,942 |
|
Less: average goodwill, CDI and WMI assets, net of deferred tax
liability related to goodwill |
|
|
(315,493 |
) |
|
|
(314,017 |
) |
|
|
(110,973 |
) |
Average tangible common equity
(non-GAAP) |
|
$ |
803,625 |
|
|
$ |
768,823 |
|
|
$ |
730,969 |
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
1.70% |
|
|
|
0.70% |
|
|
|
1.04% |
|
Return on average tangible
assets (non-GAAP) |
|
|
1.80% |
|
|
|
0.77% |
|
|
|
1.07% |
|
Adjusted return on average
tangible assets (non-GAAP) |
|
|
1.80% |
|
|
|
1.55% |
|
|
|
1.07% |
|
Return on average equity |
|
|
14.60% |
|
|
|
6.13% |
|
|
|
8.84% |
|
Return on average tangible
common equity (non-GAAP) |
|
|
20.86% |
|
|
|
9.17% |
|
|
|
10.31% |
|
Adjusted return on average
tangible common equity (non-GAAP) |
|
|
20.86% |
|
|
|
18.37% |
|
|
|
10.31% |
|
|
|
|
|
|
|
|
|
|
|
(1)
Acquisition-related adjustments: |
|
|
|
|
|
|
|
|
|
Provision expense
adjustments: |
|
|
|
|
|
|
|
|
|
CECL day 1 provision expense (non-GAAP) |
|
$ |
— |
|
|
$ |
16,348 |
|
|
$ |
— |
|
Non-interest expense
adjustments: |
|
|
|
|
|
|
|
|
|
Acquisition-related expenses (non-GAAP) |
|
|
— |
|
|
|
6,811 |
|
|
|
— |
|
Acquisition-related adjustments before tax (non-GAAP) |
|
|
— |
|
|
|
23,159 |
|
|
|
— |
|
Tax expense impact |
|
|
— |
|
|
|
(5,334 |
) |
|
|
— |
|
Acquisition-related adjustments, after tax (non-GAAP) |
|
$ |
— |
|
|
$ |
17,825 |
|
|
$ |
— |
|
Fully Taxable Equivalent Yield on Earning Assets and Net
Interest Margin
|
|
As of and for the three months
ended |
|
|
March 31, |
|
December31, |
|
March31, |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
Interest income |
|
$ |
113,533 |
|
|
$ |
103,958 |
|
|
$ |
49,525 |
|
Add: impact of taxable
equivalent adjustment |
|
|
1,414 |
|
|
|
1,454 |
|
|
|
1,313 |
|
Interest income FTE
(non-GAAP) |
|
$ |
114,947 |
|
|
$ |
105,412 |
|
|
$ |
50,838 |
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
94,889 |
|
|
$ |
95,066 |
|
|
$ |
46,661 |
|
Add: impact of taxable
equivalent adjustment |
|
|
1,414 |
|
|
|
1,454 |
|
|
|
1,313 |
|
Net interest income FTE
(non-GAAP) |
|
$ |
96,303 |
|
|
$ |
96,520 |
|
|
$ |
47,974 |
|
|
|
|
|
|
|
|
|
|
|
Average earning assets |
|
$ |
8,902,740 |
|
|
$ |
8,729,482 |
|
|
$ |
6,702,501 |
|
Yield on earning assets |
|
|
5.17% |
|
|
|
4.72% |
|
|
|
3.00% |
|
Yield on earning assets FTE
(non-GAAP) |
|
|
5.24% |
|
|
|
4.79% |
|
|
|
3.08% |
|
Net interest margin |
|
|
4.32% |
|
|
|
4.32% |
|
|
|
2.82% |
|
Net interest margin FTE
(non-GAAP) |
|
|
4.39% |
|
|
|
4.39% |
|
|
|
2.90% |
|
Efficiency Ratio and Pre-Provision Net
Revenue
|
|
As of and for the three months ended |
|
|
March 31, |
|
December31, |
|
March31, |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
Net interest income |
|
$ |
94,889 |
|
|
$ |
95,066 |
|
|
$ |
46,661 |
|
Add: impact of taxable
equivalent adjustment |
|
|
1,414 |
|
|
|
1,454 |
|
|
|
1,313 |
|
Net interest income FTE
(non-GAAP) |
|
$ |
96,303 |
|
|
$ |
96,520 |
|
|
$ |
47,974 |
|
|
|
|
|
|
|
|
|
|
|
Non-interest income |
|
$ |
14,665 |
|
|
$ |
14,138 |
|
|
$ |
19,054 |
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense |
|
$ |
58,292 |
|
|
$ |
67,662 |
|
|
$ |
44,082 |
|
Less: CDI and WMI asset
amortization |
|
|
(1,363 |
) |
|
|
(1,363 |
) |
|
|
(296 |
) |
Less: acquisition-related
expenses (non-GAAP) |
|
|
— |
|
|
|
(6,811 |
) |
|
|
— |
|
Non-interest expense excluding CDI and WMI asset amortization and
acquisition-related expenses (non-GAAP) |
|
$ |
56,929 |
|
|
$ |
59,488 |
|
|
$ |
43,786 |
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense |
|
$ |
58,292 |
|
|
$ |
67,662 |
|
|
$ |
44,082 |
|
Less: acquisition-related
expenses (non-GAAP) |
|
|
— |
|
|
|
(6,811 |
) |
|
|
— |
|
Non-interest expense adjusted for acquisition-related expenses
(non-GAAP) |
|
$ |
58,292 |
|
|
$ |
60,851 |
|
|
$ |
44,082 |
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
|
|
53.21% |
|
|
|
61.96% |
|
|
|
67.08% |
|
Efficiency ratio excluding CDI and WMI amortization and
acquisition-related expenses FTE (non-GAAP) |
|
|
51.30% |
|
|
|
53.76% |
|
|
|
65.32% |
|
|
|
|
|
|
|
|
|
|
|
Pre-provision net revenue
(non-GAAP) |
|
$ |
51,262 |
|
|
$ |
41,542 |
|
|
$ |
21,633 |
|
Pre-provision net revenue, FTE
(non-GAAP) |
|
|
52,676 |
|
|
|
42,996 |
|
|
|
22,946 |
|
Pre-provision net revenue FTE,
adjusted for acquisition-related expenses (non-GAAP) |
|
|
52,676 |
|
|
|
49,807 |
|
|
|
22,946 |
|
Adjusted Net Income and Earnings Per Share
|
|
As of and for the three months ended |
|
|
March 31, |
|
December31, |
|
March31, |
|
|
2023 |
|
2022 |
|
2022 |
Adjustments to net income: |
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
40,283 |
|
$ |
16,721 |
|
$ |
18,352 |
Add: Acquisition-related
adjustments, after tax (non-GAAP) |
|
|
— |
|
|
17,825 |
|
|
— |
Adjusted net income
(non-GAAP) |
|
$ |
40,283 |
|
$ |
34,546 |
|
$ |
18,352 |
|
|
|
|
|
|
|
|
|
|
Adjustments to
earnings per share: |
|
|
|
|
|
|
|
|
|
Earnings per share
diluted |
|
$ |
1.06 |
|
$ |
0.44 |
|
$ |
0.60 |
Add: Acquisition-related
adjustments, after tax (non-GAAP) |
|
|
— |
|
|
0.47 |
|
|
— |
Adjusted earnings per share -
diluted (non-GAAP)(1) |
|
$ |
1.06 |
|
$ |
0.91 |
|
$ |
0.60 |
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