National Bank (US:NBHC)2026-01-27 21:14Financial Performance - Net income for Q4 2025 was $16.0 million, or $0.42 per diluted share, a decrease from $35.3 million, or $0.92 per diluted share in Q3 2025[9]. - Net income for Q4 2025 was $16,036,000, down from $35,285,000 in Q3 2025 and $28,184,000 in Q4 2024[40]. - Adjusted net income for the same period was $22,748 thousand, compared to $36,621 thousand in the prior quarter, reflecting a decline of 37.9%[58]. - Earnings per share (EPS) for Q4 2025 was $0.42, compared to $0.92 in Q3 2025 and $0.73 in Q4 2024[40]. - Return on average assets decreased to 0.65% for the three months ended December 31, 2025, compared to 1.43% for the previous quarter and 1.13% for the same quarter last year[53]. - Return on average tangible assets for the three months ended December 31, 2025, was 0.73%, compared to 1.54% in the previous quarter[56]. - Return on average tangible common equity for the same period was 6.58%, a decrease from 14.21% in the prior quarter[56]. Income and Expenses - Non-interest income for 2025 increased by $6.3 million, or 10.3%, to $67.6 million, excluding losses from security sales[27]. - Non-interest income for Q4 2025 totaled $14,433,000, a decrease from $20,691,000 in Q3 2025 and an increase from $11,119,000 in Q4 2024[40]. - Total non-interest expense for Q4 2025 was $72,448,000, an increase from $67,246,000 in Q3 2025 and $64,546,000 in Q4 2024[40]. - The efficiency ratio increased to 71.99% for the three months ended December 31, 2025, compared to 61.76% for the previous quarter and 63.75% for the same quarter last year[53]. - The efficiency ratio for the three months ended December 31, 2025, was 70.55%, an increase from 60.65% in the previous quarter[57]. - Pre-provision net revenue for the three months ended December 31, 2025, was $30,249 thousand, down from $43,630 thousand in the prior quarter[57]. Capital and Assets - The common equity tier 1 capital ratio increased to 14.89%, up 169 basis points from the previous year[19]. - The Tier 1 risk-based capital ratio remained stable at 14.89%, consistent with the previous quarter[42]. - The total risk-based capital ratio improved to 16.82%, up from 16.63% in the prior quarter[42]. - Total assets decreased to $9,883,518 thousand as of December 31, 2025, down from $10,152,686 thousand at September 30, 2025, representing a decline of 2.65%[42]. - The total assets as of December 31, 2025, were $9,845,221,000, with total liabilities of $8,488,370,000 and shareholders' equity of $1,356,851,000[47]. - The average equity to average assets ratio improved to 14.21%, up from 13.94% in the prior quarter[42]. Loans and Deposits - New loan originations totaled $1.6 billion for the year, with $591.0 million originated in Q4 2025[5][23]. - Total originated loans increased to $6,350,621 thousand, a 1.4% increase from $6,262,870 thousand in the previous quarter[43]. - Total loan fundings for the fourth quarter reached $591,008 thousand, significantly higher than $421,200 thousand in the third quarter[44]. - Average total deposits remained stable at $8.2 billion, with a loan to deposit ratio of 89.6%[15][26]. - Total deposits decreased to $8,292,634 thousand, down 2.11% from $8,471,680 thousand in the prior quarter[42]. - The average total deposits for the year ended December 31, 2025, were $8,201,875,000[47]. Credit Quality - The company recorded a provision expense of $17.8 million for credit losses, compared to $6.8 million in the prior year, with net charge-offs at 0.34% of average total loans[25]. - The provision expense for credit losses in Q4 2025 was $9,100,000, compared to a release of $(1,500,000) in Q3 2025 and $1,979,000 in Q4 2024[40]. - The allowance for credit losses decreased to $87,415 thousand as of December 31, 2025, from $88,280 thousand as of September 30, 2025, and $94,455 thousand as of December 31, 2024[50]. - The ratio of non-performing loans to total loans was 0.34% as of December 31, 2025, down from 0.36% as of September 30, 2025, and 0.46% as of December 31, 2024[52]. - The total past due and non-accrual loans amounted to $52,290 thousand as of December 31, 2025, slightly down from $53,123 thousand as of September 30, 2025, and significantly down from $74,098 thousand as of December 31, 2024[51]. - The ratio of allowance for credit losses to non-performing loans was 350.90% as of December 31, 2025, compared to 330.45% as of September 30, 2025, and 262.42% as of December 31, 2024[53]. Shareholder Returns - The quarterly cash dividend was increased by 3.2% to $0.32 per share, payable on March 13, 2026[7]. - The company executed $2.1 million in share buybacks during Q4 2025, totaling $15.2 million for the year[19]. - The company reported a common stock dividend of $0.31 for Q4 2025, up from $0.30 in Q3 2025 and $0.29 in Q4 2024[40].