Core Viewpoint - National Bank Holdings Corporation reported strong financial results for the second quarter of 2025, with significant increases in net income, earnings per share, and returns on equity, driven by a robust net interest margin and disciplined credit management [3][4]. Financial Performance - Net income for Q2 2025 was $34.0 million, a 40.4% increase from $24.2 million in Q1 2025 [4]. - Earnings per diluted share rose to $0.88 from $0.63 in the previous quarter [4]. - Fully taxable equivalent pre-provision net revenue increased by 14.3% annualized to $43.5 million [4]. - Year-over-year, fully taxable equivalent pre-provision net revenue grew by 19.9% [4]. Return Ratios - Return on average tangible common equity reached 14.18%, up from 10.64% in Q1 2025 [4]. - Return on average tangible assets increased to 1.49% from 1.09% in the previous quarter [4]. - Return on average equity improved to 10.15% from 7.42% in Q1 2025 [4]. Net Interest Income - Fully taxable equivalent net interest income rose to $89.3 million, attributed to one additional day in the quarter [5]. - The net interest margin widened to 3.95%, driven by a three basis point increase in earning asset yields [5]. Loan Portfolio - Total loans amounted to $7.5 billion as of June 30, 2025, with quarterly loan fundings of $322.7 million [6]. - The weighted average rate on new loans was 7.4%, compared to a 6.5% yield on the overall loan portfolio [6]. Asset Quality - The company recorded no provision expense for credit losses, a significant improvement from $10.2 million in the previous quarter [7]. - Annualized net charge-offs were 0.05% of average total loans, down from 0.80% [7]. - Non-performing loans remained stable at 0.45% of total loans [7]. Deposits - Average total deposits decreased by $58.8 million to $8.2 billion during Q2 2025 [8]. - The loan to deposit ratio was 90.5%, slightly down from 90.8% [8]. Non-Interest Income and Expenses - Non-interest income increased by 11.0% to $17.1 million, driven by gains from partnership investments and bank card fees [9]. - Non-interest expenses totaled $62.9 million, reflecting disciplined expense management [10]. Capital Position - The Common Equity Tier 1 capital ratio stood at 14.2%, indicating strong capital growth [3]. - Shareholders' equity increased by $23.2 million to $1.4 billion, primarily due to retained earnings growth [12]. Year-Over-Year Comparison - For the first six months of 2025, net income was $58.3 million, a slight increase from $57.5 million in the same period of 2024 [14]. - Fully taxable equivalent net interest income rose to $177.9 million, with a net interest margin of 3.94% [15].

Core Insights - National Bank Holdings Corporation (NBHC) has announced a strategic partnership with 2UniFi to enhance financial solutions for small and medium-sized businesses in the U.S. [1][2] - The partnership will integrate 2UniFi within Nav's marketplace, which serves over 1 million users, providing access to deposit and lending solutions [1][2] - NBHC has made a $5 million strategic investment in Nav, aiming to empower small business owners with financial health tools [3] Company Overview - National Bank Holdings Corporation operates a network of over 85 banking centers across several states, including Colorado, Kansas, Utah, Wyoming, Texas, New Mexico, and Idaho [4] - The bank focuses on delivering high-quality client service and is committed to stakeholder results through its various banking subsidiaries [4] Nav Technologies Overview - Nav is recognized as the leading credit and financial health platform for small businesses, offering insights into cash flow and credit alongside financing options [6] - The platform allows small business owners to build and manage their business credit and see potential financing qualifications before applying [6] - Nav has raised over $100 million in capital from notable investors, including Goldman Sachs and Kleiner Perkins [6]

Core Points - National Bank Holdings Corporation (NBHC) is set to report its second quarter financial results on July 22, 2025, after market close [1] - A conference call to discuss the results will be held on July 23, 2025, at 11:00 a.m. Eastern Time [1] Company Overview - National Bank Holdings Corporation is a bank holding company focused on building a community bank franchise that emphasizes high-quality client service and stakeholder results [2] - The company operates over 85 banking centers across several states, including Colorado, Kansas, Utah, Wyoming, Texas, New Mexico, and Idaho, serving a diverse clientele [2] - Its banking subsidiaries include NBH Bank and Bank of Jackson Hole Trust, with various brand names operating under a single state charter [2]

[Part I. Financial Information](index=7&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements (Unaudited)](index=7&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) These unaudited statements show total assets grew to $10.1 billion while net income decreased to $24.2 million due to a significant credit loss provision [Consolidated Statements of Financial Condition](index=7&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$10,098,870** | **$9,807,693** | | Cash and cash equivalents | $246,298 | $127,848 | | Investment securities (AFS & HTM) | $1,341,288 | $1,060,655 | | Loans, net | $7,556,104 | $7,656,688 | | Goodwill | $306,043 | $306,043 | | **Total Liabilities** | **$8,769,562** | **$8,502,618** | | Total deposits | $8,424,207 | $8,237,893 | | **Total Shareholders' Equity** | **$1,329,308** | **$1,305,075** | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) Consolidated Income Statement Highlights (in thousands, except per share data) | Account | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net interest income | $86,691 | $84,030 | | Provision for credit loss expense | $10,200 | $0 | | Non-interest income | $15,376 | $17,694 | | Non-interest expense | $62,017 | $62,834 | | **Net income** | **$24,231** | **$31,391** | | **Earnings per share—diluted** | **$0.63** | **$0.82** | | Common stock dividend | $0.29 | $0.27 | [Consolidated Statements of Comprehensive Income](index=9&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) - Comprehensive income for Q1 2025 was **$34.2 million**, an increase from **$27.6 million** in Q1 2024, driven by a positive change in other comprehensive income of **$10.0 million** from net unrealized gains on available-for-sale securities[21](index=21&type=chunk) [Consolidated Statements of Changes in Shareholders' Equity](index=10&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) - Shareholders' equity increased to **$1,329.3 million** at March 31, 2025, driven by **$24.2 million** in net income and **$10.0 million** in other comprehensive income, partially offset by **$11.2 million** in cash dividends[23](index=23&type=chunk) [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary (in thousands) | Activity | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $39,625 | $29,957 | | Net cash (used in) provided by investing activities | ($127,484) | $93,619 | | Net cash provided by (used in) financing activities | $206,309 | ($22,971) | | **Increase in cash and cash equivalents** | **$118,450** | **$100,605** | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) - The investment securities portfolio totaled **$1.3 billion** at March 31, 2025, comprised of **$0.6 billion** in available-for-sale (AFS) and **$0.7 billion** in held-to-maturity (HTM) securities[35](index=35&type=chunk) - Total loans were **$7.65 billion** as of March 31, 2025, with commercial loans making up the largest portion of the portfolio at **60.2%**[54](index=54&type=chunk) - The Allowance for Credit Losses (ACL) decreased to **$90.2 million**, with a provision expense of **$10.9 million** recorded for the quarter to cover a charge-off on a single credit suspected of fraudulent activity[69](index=69&type=chunk)[71](index=71&type=chunk) - The company and its subsidiary banks met all regulatory capital requirements and were considered **'well-capitalized'** as of March 31, 2025, with a consolidated Tier 1 leverage ratio of **10.9%**[92](index=92&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=56&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the net income decrease to a $10.2 million credit loss provision, while noting growth in pre-provision net revenue and a strong capital position [Overview](index=56&type=section&id=MD%26A_Overview) Q1 2025 Key Performance Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $24.2M | $31.4M | | Diluted EPS | $0.63 | $0.82 | | Return on Average Tangible Assets | 1.09% | 1.39% | | FTE Net Interest Margin | 3.93% | 3.78% | | Provision for Credit Losses | $10.2M | $0M | - The decrease in net income was largely driven by a **$10.2 million** provision for credit losses recorded primarily to cover a charge-off on one credit due to suspected fraudulent activity[167](index=167&type=chunk) - The company continues to invest in its digital financial ecosystem, 2UniFi, incurring **$3.4 million** in related expenses during Q1 2025[167](index=167&type=chunk) [Financial Condition](index=68&type=section&id=MD%26A_Financial_Condition) - Total assets increased by **$291.2 million (3.0%)** to **$10.1 billion** at March 31, 2025, driven by increases in cash and investment securities[193](index=193&type=chunk) - The loan portfolio is well-diversified with low exposure to non-owner occupied CRE retail (**2.0%** of total loans) and office properties (**1.3%** of total loans)[214](index=214&type=chunk) - Total deposits increased by **$186.3 million** to **$8.4 billion** in Q1 2025, with approximately **78%** of total deposits FDIC insured[193](index=193&type=chunk)[242](index=242&type=chunk) [Results of Operations](index=87&type=section&id=MD%26A_Results_of_Operations) Net Interest Income Analysis (FTE Basis) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Interest Income (FTE) | $88.6M | $85.7M | | Net Interest Margin (FTE) | 3.93% | 3.78% | | Yield on Earning Assets (FTE) | 5.85% | 5.88% | | Cost of Funds | 2.07% | 2.25% | - A provision for credit losses of **$10.2 million** was recorded in Q1 2025, primarily to cover a charge-off on one credit driven by suspected fraudulent activity[268](index=268&type=chunk) - Non-interest income decreased by **$2.3 million** YoY to **$15.4 million**, mainly due to the timing of SBA loan sales and swap fees[269](index=269&type=chunk) - Non-interest expense decreased by **$0.8 million** YoY to **$62.0 million**, as a **$2.2 million** reduction in salaries and benefits was partially offset by a **$1.2 million** increase in technology costs[270](index=270&type=chunk) [Liquidity and Capital Resources](index=95&type=section&id=MD%26A_Liquidity_and_Capital_Resources) Liquidity Position (in thousands) | Source | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **On-Balance Sheet Liquidity** | | | | Cash and due from banks | $246,298 | $127,848 | | Unencumbered investment securities | $556,176 | $319,949 | | **Total On-Balance Sheet** | **$802,474** | **$447,797** | | **Off-Balance Sheet Availability** | | | | Available FHLB borrowing capacity | $1,652,991 | $1,697,259 | | Federal Reserve Bank discount window | $808,616 | $880,892 | | **Total Off-Balance Sheet** | **$2,461,607** | **$2,578,151** | - The company and its subsidiary banks exceeded all **'well-capitalized'** regulatory thresholds as of March 31, 2025[281](index=281&type=chunk) - The Board of Directors declared a quarterly dividend of **$0.30 per share**, payable on June 13, 2025[285](index=285&type=chunk) [Asset/Liability Management and Interest Rate Risk](index=99&type=section&id=MD%26A_Asset%2FLiability%20Management%20and%20Interest%20Rate%20Risk) Interest Rate Sensitivity Analysis (% change in projected NII) | Hypothetical Rate Shift (bps) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | +200 | 2.27% | 1.72% | | +100 | 1.17% | 0.87% | | -100 | (1.48)% | (1.05)% | | -200 | (2.93)% | (2.11)% | - The company's interest rate risk model indicated a **fairly neutral position** in terms of interest rate sensitivity at March 31, 2025[290](index=290&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=101&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section incorporates the MD&A's discussion on market risk exposure and management strategies - Information regarding market risk is provided under the caption 'Asset/Liability Management and Interest Rate Risk' in Item 2 of this report and is incorporated herein by reference[298](index=298&type=chunk) [Controls and Procedures](index=101&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - Based on an evaluation as of March 31, 2025, the principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were **effective**[299](index=299&type=chunk) - There were **no changes** in the company's internal control over financial reporting during the first quarter of 2025 that have materially affected, or are reasonably likely to materially affect, these controls[300](index=300&type=chunk) [Part II. Other Information](index=102&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=102&type=section&id=Item%201.%20Legal%20Proceedings) The company is not party to any litigation expected to have a material adverse effect on its financial condition - The company is not presently party to any legal proceedings that are expected to have a **material adverse effect** on its business, financial condition, or results of operations[302](index=302&type=chunk) [Risk Factors](index=102&type=section&id=Item%201A.%20Risk%20Factors) No material changes were made to the risk factors disclosed in the 2024 Annual Report on Form 10-K - There have been **no material changes** to the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[303](index=303&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=102&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase shares under its public plan, leaving the full $50 million authorization available - As of March 31, 2025, the company had **$50.0 million remaining** under its stock repurchase program authorized on May 9, 2023[305](index=305&type=chunk) - During February and March 2025, the company purchased a total of **21,791 shares** at a weighted average price of **$41.90 per share** to satisfy employee tax withholdings[304](index=304&type=chunk) [Other Information](index=102&type=section&id=Item%205.%20Other%20Information) No information was required to be disclosed under this item for the quarter - None[306](index=306&type=chunk) [Exhibits](index=103&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the report, including certifications and XBRL data files - The exhibits filed with the report include CEO and CFO certifications (31.1, 31.2, 32) and the XBRL Interactive Data File (101 and 104)[309](index=309&type=chunk)

Core Points - National Bank Holdings Corporation announced a quarterly cash dividend increase of 3.4% from $0.29 to $0.30 per share, payable on June 13, 2025 [1] - Over the past five years, the quarterly dividend per common share has increased by 50%, reflecting the company's strong balance sheet and commitment to shareholder returns [2] Company Overview - National Bank Holdings Corporation is a bank holding company focused on building a community bank franchise with high-quality client service and stakeholder results [3] - The company operates over 85 banking centers across Colorado, Kansas City, Utah, Wyoming, Texas, New Mexico, and Idaho, serving various customer segments including individuals, businesses, and government entities [3] - Its banking operations include multiple brand names under NBH Bank, such as Community Banks of Colorado, Bank Midwest, and Hillcrest Bank, among others [3]

Financial Data and Key Metrics Changes - The company reported net income of $24.2 million, or 63 cents per diluted share, impacted by a $9 million charge-off due to suspected fraud [9][10] - The return on average tangible assets was 1.1%, despite the charge-off [6][10] - Fully taxable equivalent net interest margin was 3.93%, with net interest income totaling $88.6 million [11][12] - Noninterest income for the first quarter was $15.4 million, with mortgage banking income increasing by $1 million over the linked quarter [15][16] Business Line Data and Key Metrics Changes - Loan balances decreased by $105 million due to clients delaying funding needs amid economic uncertainty [10] - New loan originations had a weighted average yield of 7.3%, contributing positively to net interest margin [12][88] - Deposit balances grew by $186 million during the quarter, benefiting from seasonal tax inflows [13][21] Market Data and Key Metrics Changes - The nonperforming loan ratio ended the quarter at 45 basis points, below peer averages [13] - Past due loans decreased to 24 basis points of total loans, marking the lowest level in the last twelve months [14] - The company experienced a slower start to the year, with economic uncertainty causing clients to pause capital investments [20] Company Strategy and Development Direction - The company is focused on credit quality and expense control, operating in a risk-off mode [7][8] - There is a commitment to disciplined expense management, with total noninterest expense for the first quarter at $62 million [16][17] - The company aims for mid-single-digit loan growth for the year, despite geopolitical and economic uncertainties [10][20] Management's Comments on Operating Environment and Future Outlook - Management expressed caution among business clients regarding capital projects and M&A due to economic uncertainty [7][20] - The company believes it has built a strong balance sheet and is well-positioned to navigate volatile markets [24] - Management is optimistic about future loan growth, citing improving trends in credit quality [20][40] Other Important Information - The company maintains strong liquidity levels, with a tangible common equity ratio of 10.1% and a common equity tier one ratio of 13.6% [18] - The allowance to total loans ratio ended the quarter at 1.2%, with additional marks against the acquired loan portfolio [15] Q&A Session Summary Question: Regarding the fraud item, what are the expectations for recoveries? - Management stated they cannot comment further as the matter is under investigation by appropriate authorities [28][30] Question: How did the fraud impact the margin in the quarter? - The fraud incident had a slight impact on the margin, estimated at about two basis points [31][32] Question: What caused the additional charge-offs beyond the fraud case? - The additional charge-offs were not systemic or industry-specific, with most already reserved for in the CECL allowance modeling [38][39] Question: How does the company view tariff exposure? - Management noted that clients are assessing potential impacts, but it is too early to make a macro call on tariffs [45][46] Question: What are the thoughts on capital and buybacks? - Management is giving buybacks more attention than in the past, indicating a focus on repurchasing shares [52] Question: What does operating in a risk-off posture mean? - It involves increased scrutiny around underwriting new clients and being more cautious in taking market share [60][61] Question: What are the expectations for expenses and fee income? - Expenses are expected to rise due to investments in Unifi, while fee income is anticipated to recover as loan production increases [74][78]

National Bank Holdings (NBHC) came out with quarterly earnings of $0.63 per share, missing the Zacks Consensus Estimate of $0.76 per share. This compares to earnings of $0.82 per share a year ago. These figures are adjusted for non-recurring items. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive trac ...

Exhibit 99.1 National Bank Holdings Corporation Announces First Quarter 2025 Financial Results NYSE Ticker: NBHC Denver, Colorado - (Globe Newswire) – National Bank Holdings Corporation (the "Company") reported: | | | | For the quarter | (1) | | | | | | For the quarter - adjusted(1)(2) | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | 1Q25 | | 4Q24 | | | 1Q24 | 1Q25 | | 4Q24 | | 1Q24 | | | Net income ($000's) | $ | 24,231 | $ | 28,184 | $ | 31,391 | $ | 24,231 | $ | 3 ...

Core Points - National Bank Holdings Corporation reported a net income of $24.2 million for Q1 2025, a decrease from $28.2 million in Q4 2024 and $31.4 million in Q1 2024, primarily due to a $10.2 million provision expense related to a loan charge-off involving suspected fraud [3][4][14] - The diluted earnings per share for Q1 2025 was $0.63, down from $0.73 in Q4 2024 and $0.82 in Q1 2024 [4][30] - The return on average tangible assets was 1.09% for Q1 2025, compared to 1.23% in Q4 2024 and 1.39% in Q1 2024 [4][14] - The company maintained a solid net interest margin of 3.93%, with a 3.4% growth in fully taxable equivalent net interest income year-over-year [3][5] Financial Performance - Net interest income for Q1 2025 was $88.6 million, down from $92.0 million in Q4 2024, attributed to two fewer business days and a decrease in average earning assets [5][15] - The average total deposits decreased by $111.6 million to $8.3 billion during Q1 2025, while transaction deposits grew by $147.7 million to $7.4 billion [8][18] - Non-interest income increased to $15.4 million in Q1 2025 from $11.1 million in Q4 2024, driven by higher mortgage banking income [9][19] Asset Quality - The company recorded a provision expense for credit losses of $10.2 million in Q1 2025, significantly higher than $2.0 million in Q4 2024, primarily due to the fraud-related charge-off [7][17] - Non-performing loans decreased to 0.45% of total loans, while non-performing assets decreased to 0.46% [7][17] - The allowance for credit losses as a percentage of loans was 1.18% at March 31, 2025, compared to 1.22% at December 31, 2024 [7][17] Capital and Equity - The Common Equity Tier 1 capital ratio was reported at 13.6%, with tangible book value per share increasing by $0.66 to $25.94 during the quarter [3][12] - Shareholders' equity rose by $24.2 million to $1.3 billion, primarily due to retained earnings growth from net income [12][13] Loan Portfolio - Total loans amounted to $7.6 billion as of March 31, 2025, a decrease from $7.8 billion at the end of Q4 2024, with quarterly loan fundings of $255.7 million [6][34] - The weighted average rate on new loans was 7.3%, compared to a weighted average yield of 6.4% on the loan portfolio [6][34]

Core Viewpoint - National Bank Holdings Corporation reported a net income of $24.2 million for Q1 2025, reflecting a decrease from $28.2 million in Q4 2024, primarily due to a $10.2 million provision expense related to a loan charge-off from suspected fraud [3][4]. Financial Performance - Net income for Q1 2025 was $24.2 million or $0.63 per diluted share, down from $28.2 million or $0.73 per diluted share in Q4 2024 and $31.4 million or $0.82 per diluted share in Q1 2024 [4][15]. - The return on average tangible assets was 1.09% in Q1 2025, compared to 1.23% in Q4 2024 and 1.39% in Q1 2024 [4][15]. - The return on average tangible common equity was 10.64% in Q1 2025, down from 12.31% in Q4 2024 and 15.14% in Q1 2024 [4][15]. Net Interest Income - Fully taxable equivalent net interest income totaled $88.6 million in Q1 2025, a decrease from $92.0 million in Q4 2024, attributed to two fewer business days and a decrease in average earning assets [5][16]. - The net interest margin narrowed to 3.93%, down six basis points from the previous quarter, driven by a decrease in earning asset yields [5][16]. Loan Portfolio - Total loans amounted to $7.6 billion as of March 31, 2025, a decrease from $7.8 billion in Q4 2024, with quarterly loan fundings of $255.7 million [6][17]. - The weighted average rate on new loans was 7.3%, compared to a weighted average yield of 6.4% on the loan portfolio [6][17]. Asset Quality - The company recorded a provision expense for credit losses of $10.2 million in Q1 2025, significantly higher than $2.0 million in Q4 2024, primarily due to a charge-off related to suspected fraud [7][18]. - Non-performing loans decreased to 0.45% of total loans, while non-performing assets decreased to 0.46% [7][18]. Deposits - Average total deposits decreased by $111.6 million to $8.3 billion in Q1 2025, with average transaction deposits also declining [8][19]. - The loan to deposit ratio was 90.8% as of March 31, 2025, compared to 94.1% in the previous quarter [9][19]. Non-Interest Income and Expense - Non-interest income increased to $15.4 million in Q1 2025 from $11.1 million in Q4 2024, driven by higher mortgage banking income [10][20]. - Non-interest expense decreased to $62.0 million, down from $64.5 million in the previous quarter, primarily due to lower salaries and benefits [11][21]. Capital Position - The Common Equity Tier 1 capital ratio was 13.6% as of March 31, 2025, with tangible book value per share increasing by $0.66 to $25.94 [3][13]. - Shareholders' equity rose to $1.3 billion, driven by growth in retained earnings [13][14].