National Bank (US:NBHC)2025-07-22 20:13Financial Performance - Net income for Q2 2025 increased by $9.8 million, or 40.4%, to $34.0 million, translating to $0.88 per diluted share[4]. - Fully taxable equivalent pre-provision net revenue rose by $1.5 million, or 14.3% annualized, to $43.5 million, with a year-over-year growth of 19.9%[4][3]. - Return on average tangible common equity reached 14.18%, up from 10.64% in Q1 2025[4][3]. - Net income for Q2 2025 was $34,022,000, a significant rise from $24,231,000 in Q1 2025, representing an increase of 40%[30]. - Earnings per share (EPS) for Q2 2025 was $0.89, compared to $0.63 in Q1 2025, marking a 41.27% increase[30]. - Return on average assets improved to 1.38% for the three months ended June 30, 2025, compared to 0.99% for the previous quarter and 1.06% for the same period last year[44]. - Return on average tangible assets (non-GAAP) improved to 1.49% in Q2 2025 from 1.09% in Q1 2025[50]. - Return on average equity improved to 10.15% in Q2 2025 from 7.42% in Q1 2025[50]. Income and Revenue - Non-interest income increased by $1.7 million, or 11.0%, to $17.1 million, driven by gains from partnership investments and bank card fees[10]. - Total interest and dividend income for Q2 2025 was $131,220,000, a slight increase from $129,963,000 in Q1 2025[30]. - Net interest income for Q2 2025 reached $87,409,000, compared to $86,691,000 in Q1 2025, reflecting a growth of 0.83%[30]. - Non-interest income totaled $17,066,000 in Q2 2025, up from $15,376,000 in Q1 2025, indicating an 11% increase[30]. - The company anticipates continued growth in net interest income and non-interest income driven by strategic initiatives and market expansion[30]. Expenses and Management - Non-interest expense totaled $62.9 million, reflecting disciplined expense management despite a slight increase from the previous quarter[11]. - Total non-interest expense for Q2 2025 was $62,931,000, slightly higher than $62,017,000 in Q1 2025[30]. - The efficiency ratio improved to 60.24% for the three months ended June 30, 2025, compared to 60.76% for the previous quarter and 64.62% for the same period last year[44]. Loans and Deposits - Loans totaled $7.5 billion as of June 30, 2025, with quarterly loan fundings of $322.7 million, primarily from commercial loans[7]. - Average total deposits decreased by $58.8 million to $8.2 billion, with a loan to deposit ratio of 90.5%[9]. - Total loans amounted to $7,486,918 thousand, a decrease of 2.1% from $7,646,296 thousand in the prior quarter and a 3.0% decline year-over-year[33]. - Total deposits decreased to $8,269,484 thousand, down 1.8% from $8,424,207 thousand in the previous quarter[32]. - Commercial and industrial loans decreased by 2.2% to $1,829,984 thousand compared to the previous quarter[33]. Capital and Ratios - The Common Equity Tier 1 capital ratio stood at 14.2%, indicating strong capital growth and excess capital for future opportunities[3]. - The Tier 1 risk-based capital ratio remained stable at 14.17%, consistent with the previous quarter[32]. - The allowance for credit losses was $88,893 thousand, slightly improved from $90,192 thousand in the previous quarter[32]. - The ratio of allowance for credit losses to total loans was 1.19% as of June 30, 2025, compared to 1.18% in the previous quarter and 1.25% a year ago[44]. Taxation - The effective tax rate for Q2 2025 was 18.1%, a decrease from 18.8% in the previous quarter[12]. - The tax expense for Q2 2025 was $7,522,000, compared to $5,619,000 in Q1 2025, reflecting an increase in taxable income[30]. Innovations and Initiatives - The company launched 2UniFi, an innovative financial ecosystem aimed at enhancing access to banking for business owners[3].