National Bank Holdings Corporation Announces Third Quarter 2024 Financial Results and Increase to Quarterly Dividend

Core Insights - National Bank Holdings Corporation (NBHC) reported a net income of $33.1 million for Q3 2024, a 26.7% increase from $26.1 million in Q2 2024, driven by growth in net interest income and fee income [3][4][11] - The company announced a 3.6% increase in its quarterly dividend to $0.29 per share, marking the eighth consecutive semiannual increase since early 2021 [2][11] - The Common Equity Tier 1 capital ratio stood at 12.88%, indicating a strong capital position and ample liquidity for future growth [2][10] Financial Performance - Earnings per share (EPS) for Q3 2024 was $0.86, compared to $0.68 in Q2 2024 and $0.94 in Q3 2023 [1][3] - Return on average tangible common equity increased to 14.84% from 12.44% in Q2 2024 [1][3] - Fully taxable equivalent net interest income rose to $89.5 million, with a net interest margin of 3.87%, an increase of 11 basis points from the previous quarter [4][12] Loan and Deposit Metrics - Total loans remained stable at $7.7 billion, with quarterly loan fundings of $359.3 million, primarily from commercial loans [5][25] - Average total deposits increased by $21.3 million to $8.4 billion, with a loan-to-deposit ratio of 90.8% [7][12] - The mix of transaction deposits to total deposits was consistent at 88% [7][12] Asset Quality - The company recorded a provision expense for credit losses of $2.0 million, down from $2.8 million in the prior quarter, with non-performing loans decreasing to 0.31% of total loans [6][13] - The allowance for credit losses as a percentage of loans was 1.23%, slightly down from 1.25% in the previous quarter [6][13] Non-Interest Income and Expenses - Non-interest income increased by $4.4 million to $18.4 million, driven by diversified sources of fee revenue [8][14] - Non-interest expenses totaled $64.2 million, up from $63.1 million in the prior quarter, primarily due to increased salaries and benefits [8][14] Capital Position - Shareholders' equity increased by $44.4 million to $1.3 billion, with a common book value per share of $34.01 [10][24] - The tier 1 leverage ratio was reported at 10.44%, exceeding regulatory requirements [10][24]