Financial Data and Key Metrics Changes - The company reported net income of $35.3 million or $0.92 earnings per diluted share, with an adjusted net income of $36.6 million or $0.96 earnings per diluted share, reflecting a 30% annualized increase over the prior quarter [8][9] - Return on tangible common equity was 14.72%, achieved while maintaining a high level of capital [6][9] - Fully taxable equivalent net interest margin expanded three basis points to 3.98%, with an 11 basis points increase year-over-year [10][11] - Non-interest income totaled $20.7 million, a 21% increase from the previous quarter and a 13% increase year-over-year [12] Business Line Data and Key Metrics Changes - Loan fundings for the quarter reached $421 million, bringing year-to-date total loan fundings to $1 billion [9][20] - Commercial Banking, particularly in the C&I portfolio, saw an annualized growth rate of 8.7% [15] - Non-performing loans decreased by 20%, now standing at $27 million, with a non-performing loan ratio improving to 36 basis points [10][11] Market Data and Key Metrics Changes - Total deposits increased by $2 million from the prior quarter, with average deposits steady at $8.2 billion [11] - The cost of deposits was 2.08%, and the total cost of funds was 2.1% [11] Company Strategy and Development Direction - The company announced a merger with Vista Bancshares, expected to close in the first quarter, which is anticipated to enhance market share and operational capabilities [7][15] - The company is focused on maintaining pricing discipline and managing loan and deposit pricing effectively [10][20] - Plans to leverage the strengths of Vista in treasury management and wealth management to enhance service offerings [64] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the loan pipeline and credit quality trends, indicating a strong outlook for the fourth quarter [7][15] - The company is prepared to adjust deposit rates in response to potential Fed rate cuts, aiming to maintain net interest margins [26][27] - Management highlighted the competitive landscape, particularly from private credit in the commercial real estate sector, but remains confident in their positioning [38][54] Other Important Information - The company incurred approximately $1.7 million in acquisition-related expenses during the quarter [8][12] - Non-interest expense totaled $67.2 million, including $6.2 million related to the launch of 2Unify [12][13] - The tangible book value per share grew 12% annualized to $27.45 [14] Q&A Session Summary Question: Can you elaborate on the margin guidance and expected impacts from rate cuts? - Management indicated that the third quarter's margin was positively impacted by recoveries and expressed confidence in maintaining a mid-3.9% margin despite potential rate cuts [25][26] Question: What are the expectations for expenses related to 2Unify? - Management confirmed that the increase in 2Unify expenses was expected and will continue to invest in marketing and variable costs as client onboarding progresses [28][29] Question: How is the company positioned regarding loan growth and paydowns? - Management clarified that the reduction in loan volume was primarily due to heavy payoffs rather than directive paydowns, and expressed optimism about returning to growth in the fourth quarter [37][39] Question: What are the company's thoughts on private credit competition? - Management noted that competition from private credit is primarily seen in the commercial real estate sector, but they are confident in their ability to compete effectively [54] Question: What are the plans for capital deployment and buybacks? - Management confirmed that they have $35-36 million remaining in buyback authorization and will be opportunistic in capital deployment while considering potential M&A opportunities [56]

Financial Performance - Net income for Q3 2025 increased to $35.3 million, or $0.92 per diluted share, compared to $34.0 million in Q2 2025[1] - Net income for Q3 2025 reached $35,285,000, up from $34,022,000 in Q2 2025, marking an increase of about 3.7%[34] - Adjusted net income (non-GAAP) for Q3 2025 was $36,621,000, compared to $34,022,000 in Q2 2025 and $33,105,000 in Q3 2024, reflecting a year-over-year increase of 7.6%[55] - Earnings per share (EPS) for Q3 2025 was $0.92, compared to $0.89 in Q2 2025, reflecting a growth of approximately 3.4%[34] - Adjusted earnings per share (diluted, non-GAAP) for Q3 2025 was $0.96, up from $0.88 in Q2 2025 and $0.86 in Q3 2024, reflecting a year-over-year increase of 11.6%[55] Income and Expenses - Non-interest income increased by $3.6 million, or 21.2%, to $20.7 million in Q3 2025[10] - Non-interest income totaled $20,691,000 in Q3 2025, an increase from $17,066,000 in Q2 2025, representing a growth of about 21.5%[34] - Total non-interest expense for Q3 2025 was $67,246,000, compared to $62,931,000 in Q2 2025, showing an increase of approximately 6.5%[34] - Non-interest expense totaled $67.2 million, including $1.7 million of acquisition-related expenses[11] - The efficiency ratio for Q3 2025 was 61.76%, compared to 60.24% in Q2 2025 and 60.51% in Q3 2024, showing a slight decline in efficiency[54] Loans and Deposits - Loans totaled $7.4 billion with quarterly fundings of $421.2 million, led by commercial loans of $288.0 million[7] - Total loan fundings for Q3 2025 reached $421,200 thousand, a significant increase of 30.5% compared to $322,667 thousand in Q2 2025[38] - Average total deposits remained stable at $8.2 billion, with a loan to deposit ratio of 87.7%[9] - Total deposits rose to $8,471,680 thousand, an increase of 2.4% from $8,269,484 thousand in the prior quarter[36] - The loan to deposit ratio at the end of the period was 87.70% as of September 30, 2025, down from 90.54% as of June 30, 2025, and 90.79% as of September 30, 2024[47] Capital and Ratios - The return on average tangible common equity was 14.72%, adjusted for acquisition-related expenses, with a net interest margin of 3.98%[3] - Common equity tier 1 capital ratio stood at 14.69%, indicating strong capital growth[14] - The Tier 1 risk-based capital ratio remained strong at 14.69%, unchanged from the previous quarter, demonstrating solid capital adequacy[36] - Average equity to average assets ratio improved to 13.94% from 13.62% in the previous quarter, indicating stronger capital efficiency[36] Asset Quality - The company recorded a provision release of $1.5 million, with non-performing loans improving to 0.36% of total loans[8] - The provision for credit losses showed a release of $1,500,000 in Q3 2025, compared to no provision in Q2 2025, indicating improved credit quality[34] - Non-performing loans were $26,715 thousand as of September 30, 2025, down from $33,336 thousand as of June 30, 2025, and up from $23,545 thousand as of September 30, 2024[46] - The ratio of non-performing loans to total loans was 0.36% as of September 30, 2025, compared to 0.45% as of June 30, 2025, and 0.31% as of September 30, 2024[46] Strategic Initiatives - The company announced a strategic acquisition of Vista Bancshares valued at approximately $365.4 million, expected to close in Q1 2026[4]

Core Insights - National Bank Holdings Corporation (NBHC) reported a net income of $35.3 million for Q3 2025, an increase from $34.0 million in Q2 2025, with diluted earnings per share rising to $0.92 from $0.88 [1][5] - The company announced a strategic acquisition of Vista Bancshares, valued at approximately $365.4 million, expected to close in Q1 2026 [4][3] Financial Performance - Net income for the first nine months of 2025 reached $93.5 million, up from $90.6 million in the same period of 2024, with diluted earnings per share increasing to $2.43 from $2.36 [15] - The return on average tangible common equity was reported at 14.72%, adjusted for acquisition-related expenses, while the return on average tangible assets was 1.60% [3][5] - Fully taxable equivalent net interest income increased to $90.2 million in Q3 2025, with a net interest margin of 3.98% [6][1] Loan and Deposit Metrics - Total loans amounted to $7.4 billion as of September 30, 2025, with quarterly loan fundings of $421.2 million, primarily driven by commercial loans [7][34] - Average total deposits remained stable at $8.2 billion, with a loan-to-deposit ratio of 87.7% [9][18] Asset Quality - The company recorded a provision release of $1.5 million, with non-performing loans improving to 0.36% of total loans [8][17] - The allowance for credit losses as a percentage of loans was consistent at 1.19% [8][17] Non-Interest Income and Expenses - Non-interest income increased by 21.2% to $20.7 million in Q3 2025, driven by unrealized gains on partnership investments [10][19] - Non-interest expenses totaled $67.2 million, including $1.7 million in acquisition-related costs, reflecting an increase from $62.9 million in Q2 2025 [11][20] Capital and Shareholder Returns - The Common Equity Tier 1 capital ratio stood at 14.69%, with shareholders' equity increasing to $1.4 billion [13][30] - Common book value per share rose to $36.36, while tangible common book value per share increased to $27.45 [14][30]

Company Overview - National Bank Holdings (NBHC) is located in Greenwood Village and operates in the Finance sector, with a year-to-date share price change of -17.3% [3] - The company currently pays a dividend of $0.30 per share, resulting in a dividend yield of 3.37%, which is higher than the Banks - Southeast industry's yield of 2.41% and the S&P 500's yield of 1.52% [3] Dividend Performance - The current annualized dividend of $1.20 represents a 7.1% increase from the previous year [4] - Over the past five years, NBHC has increased its dividend five times, achieving an average annual increase of 8.98% [4] - The company's current payout ratio is 37%, indicating that it pays out 37% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - NBHC is expected to see earnings growth this fiscal year, with the Zacks Consensus Estimate for 2025 at $3.30 per share, reflecting a year-over-year growth rate of 2.48% [5] Investment Appeal - NBHC is considered an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 1 (Strong Buy) [6]

Core Insights - National Bank Holdings Corporation (NBHC) is set to report its third quarter financial results on October 21, 2025, after market close [1] - A conference call to discuss the results will take place on October 22, 2025, at 11:00 a.m. Eastern Time [1] - The call will cover company developments, forward-looking statements, and other material business and financial information [1] Company Overview - National Bank Holdings Corporation is a bank holding company focused on building a leading community bank franchise with high-quality client service [2] - The company operates through its subsidiaries, NBH Bank and Bank of Jackson Hole Trust, with over 85 banking centers across several states including Colorado, Kansas, Utah, Wyoming, Texas, New Mexico, and Idaho [2] - NBH Bank operates under various brand names in different states, including Community Banks of Colorado, Bank Midwest, Hillcrest Bank, and Bank of Jackson Hole [2]

Core Viewpoint - National Bank Holdings (NBHC) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [4]. Recent Performance and Projections - For the fiscal year ending December 2025, NBHC is expected to earn $3.30 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 9.3% over the past three months [8]. - The upgrade reflects an improvement in the company's underlying business, which is expected to drive the stock price higher as investors recognize this trend [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].

Company Overview - National Bank Holdings (NBHC) is headquartered in Greenwood Village and has experienced a price change of -10.27% this year [3] - The company currently pays a dividend of $0.30 per share, resulting in a dividend yield of 3.11%, which is higher than the Banks - Southeast industry's yield of 2.28% and the S&P 500's yield of 1.49% [3] Dividend Performance - The current annualized dividend of $1.20 represents a 7.1% increase from the previous year [4] - Over the past 5 years, NBHC has increased its dividend 5 times, achieving an average annual increase of 8.98% [4] - The current payout ratio is 37%, indicating that the company paid out 37% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for NBHC's earnings in 2025 is $3.30 per share, reflecting a year-over-year growth rate of 2.48% [5] - The company is viewed as an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 1 (Strong Buy) [6]

Core Insights - The company is focused on the development of transcript-related projects, indicating a commitment to enhancing their offerings in this area [1] Group 1 - The company publishes thousands of quarterly earnings calls each quarter, showcasing significant growth and expansion in their coverage [1]

Core Viewpoint - National Bank Holdings Corporation is conducting a conference call to discuss a significant transaction and its anticipated impact on future performance [2]. Group 1 - The conference call includes forward-looking statements regarding the announced transaction and its effects on the company's future [2]. - Actual results may differ from the forward-looking statements due to various risks and uncertainties [2]. - The statements made during the call are only valid as of the call date, and the company does not commit to updating them [3].

Group 1 - The conference call is hosted by National Bank Holdings Corporation, indicating a significant announcement regarding a transaction [1] - The call includes forward-looking statements about the transaction and its potential impact on the company's future performance, highlighting the uncertainty involved [2] - The statements made during the call are only valid as of the call date, with no obligation from the company to update or revise them [3]