National Bank (NBHC) - 2024 Q4 - Annual Results

Financial Performance - Net income for Q4 2024 was $28.2 million, or $0.73 per diluted share, down from $33.1 million, or $0.86 per diluted share in Q3 2024[4] - Net income for Q4 2024 was $28,184,000, a decrease from $33,121,000 in Q4 2023[41] - Earnings per share (EPS) for Q4 2024 was $0.73, down from $0.87 in Q4 2023[41] - Adjusted net income (non-GAAP) for Q4 2024 was $33,232,000, remaining stable compared to $33,105,000 in Q3 2024 and $33,121,000 in Q4 2023[63] - Return on average assets decreased to 1.13% for the three months ended December 31, 2024, from 1.32% in the previous quarter and 1.33% a year ago[55] - Pre-provision net revenue (non-GAAP) for Q4 2024 was $36,704,000, a decrease from $41,880,000 in Q3 2024 and $43,470,000 in Q4 2023[62] Income and Expenses - The company achieved net interest income growth of 11.3% annualized during the quarter, with a strong net interest margin of 3.99%[3] - Non-interest income totaled $11.1 million in Q4 2024, impacted by a $6.6 million non-recurring loss on AFS security sales[12] - Non-interest income totaled $11,119,000 in Q4 2024, down from $16,064,000 in Q4 2023, primarily due to a loss on security sales of $6,582,000[41] - Non-interest expense increased by $0.3 million to $64.5 million in Q4 2024, driven by technology investments[13] - Total non-interest expense for Q4 2024 was $64,546,000, slightly up from $62,095,000 in Q4 2023[41] Loans and Deposits - Total loans increased by $36.6 million, or 1.9% annualized, reaching $7.8 billion at the end of Q4 2024[9] - Average total deposits decreased by $29.0 million to $8.4 billion during Q4 2024, with a loan to deposit ratio of 94.1%[11] - Total loans increased to $7,751,143 thousand as of December 31, 2024, from $7,714,495 thousand as of September 30, 2024, and $7,698,758 thousand as of December 31, 2023[51] - Total deposits decreased to $8,237,893 thousand, down 3.1% from $8,497,128 thousand at September 30, 2024, but up 0.6% from $8,190,391 thousand at December 31, 2023[43] - The loan to deposit ratio at the end of the period was 94.09% as of December 31, 2024, compared to 90.79% in the previous quarter and 94.00% a year ago[55] Capital and Ratios - The Common Equity Tier 1 capital ratio was 13.2% at December 31, 2024, indicating strong capital position[16] - The Tier 1 risk-based capital ratio remained stable at 13.20%, consistent with the previous quarter and up from 11.89% a year ago[43] - Average equity to average assets ratio improved to 13.10% from 12.80% at September 30, 2024, and 11.97% at December 31, 2023[43] Asset Management - Total assets decreased to $9,807,693 thousand as of December 31, 2024, down from $9,993,283 thousand at September 30, 2024, representing a decline of 1.9%[43] - Total interest earning assets for the year ended December 31, 2024, amounted to $9,154,018 thousand, with a net interest margin of 5.96%[48] - The total assets as of December 31, 2024, were $9,924,651 thousand, with total liabilities of $8,662,265 thousand[48] Credit Quality - The company recorded a provision expense for credit losses of $2.0 million in Q4 2024, consistent with the prior quarter[10] - Provision expense for credit losses was $1,979,000 in Q4 2024, compared to $4,570,000 in Q4 2023, indicating improved credit quality[41] - The allowance for credit losses slightly decreased to $94,455 thousand from $95,047 thousand at September 30, 2024, indicating stable credit quality[43] - Non-performing loans rose to $35,994 thousand as of December 31, 2024, compared to $23,545 thousand as of September 30, 2024, and $28,228 thousand as of December 31, 2023[53] - The ratio of annualized net charge-offs to average total loans was 0.11% for the three months ended December 31, 2024, compared to 0.18% for the previous quarter and 0.02% for the same period last year[51] Strategic Initiatives - The company operates over 90 banking centers across its core footprint, which includes Colorado, Kansas City, Utah, Wyoming, Texas, New Mexico, and Idaho[41] - The company is focused on enhancing its digital strategy and developing new products, including its digital solution 2UniFi[38]