National Bank (US:NBHC)2025-10-21 20:13Financial 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]