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National Bank (NBHC) - 2024 Q4 - Annual Results
NBHCNational Bank (NBHC)2025-01-22 21:14

Financial Performance - Net income for Q4 2024 was 28.2million,or28.2 million, or 0.73 per diluted share, down from 33.1million,or33.1 million, or 0.86 per diluted share in Q3 2024[4] - Net income for Q4 2024 was 28,184,000,adecreasefrom28,184,000, a decrease from 33,121,000 in Q4 2023[41] - Earnings per share (EPS) for Q4 2024 was 0.73,downfrom0.73, down from 0.87 in Q4 2023[41] - Adjusted net income (non-GAAP) for Q4 2024 was 33,232,000,remainingstablecomparedto33,232,000, remaining stable compared to 33,105,000 in Q3 2024 and 33,121,000inQ42023[63]−Returnonaverageassetsdecreasedto1.1333,121,000 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 41,880,000inQ32024and41,880,000 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 11.1millioninQ42024,impactedbya11.1 million in Q4 2024, impacted by a 6.6 million non-recurring loss on AFS security sales[12] - Non-interest income totaled 11,119,000inQ42024,downfrom11,119,000 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−interestexpenseincreasedby6,582,000[41] - Non-interest expense increased by 0.3 million to 64.5millioninQ42024,drivenbytechnologyinvestments[13]−Totalnon−interestexpenseforQ42024was64.5 million in Q4 2024, driven by technology investments[13] - Total non-interest expense for Q4 2024 was 64,546,000, slightly up from 62,095,000inQ42023[41]LoansandDeposits−Totalloansincreasedby62,095,000 in Q4 2023[41] Loans and Deposits - Total loans increased by 36.6 million, or 1.9% annualized, reaching 7.8billionattheendofQ42024[9]−Averagetotaldepositsdecreasedby7.8 billion at the end of Q4 2024[9] - Average total deposits decreased by 29.0 million to 8.4billionduringQ42024,withaloantodepositratioof94.18.4 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 7,714,495thousandasofSeptember30,2024,and7,714,495 thousand as of September 30, 2024, and 7,698,758 thousand as of December 31, 2023[51] - Total deposits decreased to 8,237,893thousand,down3.18,237,893 thousand, down 3.1% from 8,497,128 thousand at September 30, 2024, but up 0.6% from 8,190,391thousandatDecember31,2023[43]−Theloantodepositratioattheendoftheperiodwas94.098,190,391 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 9,993,283thousandatSeptember30,2024,representingadeclineof1.99,993,283 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 9,924,651thousand,withtotalliabilitiesof9,924,651 thousand, with total liabilities of 8,662,265 thousand[48] Credit Quality - The company recorded a provision expense for credit losses of 2.0millioninQ42024,consistentwiththepriorquarter[10]−Provisionexpenseforcreditlosseswas2.0 million in Q4 2024, consistent with the prior quarter[10] - Provision expense for credit losses was 1,979,000 in Q4 2024, compared to 4,570,000inQ42023,indicatingimprovedcreditquality[41]−Theallowanceforcreditlossesslightlydecreasedto4,570,000 in Q4 2023, indicating improved credit quality[41] - The allowance for credit losses slightly decreased to 94,455 thousand from 95,047thousandatSeptember30,2024,indicatingstablecreditquality[43]−Non−performingloansroseto95,047 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 23,545thousandasofSeptember30,2024,and23,545 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]