National Bank (US:NBHC)2022-11-08 21:34Financial Position - As of September 30, 2022, the company had total assets of $7.9 billion, loans of $5.7 billion, deposits of $6.8 billion, and equity of $0.9 billion[187]. - The company completed the acquisition of Community Bancorporation on September 1, 2022, adding approximately $832.2 million in total assets and $734.5 million in deposits[188]. - The acquisition of Bancshares of Jackson Hole on October 1, 2022, added approximately $1.5 billion in total assets and $1.4 billion in deposits[189]. - Total shareholders' equity increased to $919,426 as of September 30, 2022, from $840,106 at the end of 2021[220]. - Total assets increased by $708.9 million to $7.9 billion from December 31, 2021, primarily due to the acquisition of RCB[232]. - Total deposits increased to $6.80 billion as of September 30, 2022, up from $6.23 billion as of December 31, 2021, representing a growth of 9.2%[280]. Income and Earnings - Net income for the nine months ended September 30, 2022, was $54.6 million, or $1.77 per diluted share, compared to $70.8 million, or $2.27 per diluted share, for the same period in the prior year[190]. - Net income for the three months ended September 30, 2022, was $15,839 million, a decrease from $22,769 million in the same period of 2021[221]. - Adjusted net income (non-GAAP) for the three months ended September 30, 2022, was $25,349 million, compared to $22,769 million in the same period of 2021[224]. - Net interest income for the three months ended September 30, 2022, was $69,091 million, up from $49,486 million in the same period of 2021[223]. - For the nine months ended September 30, 2022, net interest income was $175.8 million, up from $141.5 million in the same period of 2021, marking a 24% increase[301]. Loan Growth and Portfolio - The company generated record organic loan growth of 30.2% annualized, with total loans increasing by $1.2 billion, or 35.8% annualized, since December 31, 2021[196]. - The total loan portfolio increased to $5.72 billion, a 26.8% increase from $4.51 billion on December 31, 2021[252]. - The commercial loan portfolio grew by $761.1 million, or 32.2% annualized, from December 31, 2021, to September 30, 2022[253]. - Loan fundings reached a record $1.5 billion for the nine months ended September 30, 2022, with commercial loan fundings of $977.4 million[253]. - The originated commercial loan segment saw a growth of $478.0 million, or 15.4%, excluding the impact of acquisitions[253]. Asset Quality and Credit Losses - Non-performing loans to total loans remained stable at 0.26% as of September 30, 2022, compared to 0.24% in the previous year[211]. - The allowance for credit losses increased by $15.9 million to $65.6 million at September 30, 2022[232]. - The ACL to non-performing loans ratio was 447.72% as of September 30, 2022, indicating strong coverage[266]. - The allowance for credit losses (ACL) as of September 30, 2022, is $65.6 million, which is deemed adequate to cover estimated lifetime losses in the loan portfolio[276]. - The provision for credit losses was $12.7 million for the three months ended September 30, 2022, driven by record loan growth and higher reserve requirements[312]. Interest Income and Margin - Fully taxable equivalent net interest income totaled $175.8 million for the nine months ended September 30, 2022, an increase of $34.3 million, or 24.2%, compared to the same period in the prior year[204]. - Net interest margin increased to 3.93% for the three months ended September 30, 2022, compared to 2.95% in the same period of 2021[211]. - The FTE net interest margin widened by 108 basis points to 4.01% for the three months ended September 30, 2022, compared to 2.93% in the same period of 2021[292]. - The yield on earning assets increased by 107 basis points during the three months ended September 30, 2022, primarily due to rising federal funds rates and strategic deployment of excess cash[292]. Non-Interest Income and Expenses - Non-interest income decreased to $53.2 million for the nine months ended September 30, 2022, from $87.1 million for the same period in 2021, primarily due to lower mortgage banking income[204]. - Non-interest income totaled $17.4 million for the three months ended September 30, 2022, a decrease of 39.1% compared to $28.5 million for the same period in 2021[314]. - Mortgage banking income decreased by 73.1% to $4.5 million for the three months ended September 30, 2022, compared to $16.6 million in 2021[314]. - Non-interest expense increased by $2.6 million, or 5.1%, for the three months ended September 30, 2022, compared to the same period in 2021[316]. Capital and Ratios - As of September 30, 2022, the company maintained a tier 1 leverage ratio of 10.45% and a common equity tier 1 risk-based capital ratio of 12.75%[204]. - The ratio of ACL to total loans outstanding at period end was 1.15% as of September 30, 2022, compared to 1.11% as of September 30, 2021[277]. - The effective tax rate for the three months ended September 30, 2022, was 20.1%, slightly lower than 20.0% for the same period in 2021[317]. Shareholder Actions - The Board of Directors authorized a share repurchase program with a remaining authorization of $38.6 million as of September 30, 2022[329].