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National Bank Holdings Corporation Announces First Quarter 2025 Financial Results
NBHCNational Bank (NBHC) Newsfilter·2025-04-22 20:10

Core Points - National Bank Holdings Corporation reported a net income of 24.2millionforQ12025,adecreasefrom24.2 million for Q1 2025, a decrease from 28.2 million in Q4 2024 and 31.4millioninQ12024,primarilyduetoa31.4 million in Q1 2024, primarily due to a 10.2 million provision expense related to a loan charge-off involving suspected fraud [3][4][14] - The diluted earnings per share for Q1 2025 was 0.63,downfrom0.63, down from 0.73 in Q4 2024 and 0.82inQ12024[4][30]−Thereturnonaveragetangibleassetswas1.090.82 in Q1 2024 [4][30] - The return on average tangible assets was 1.09% for Q1 2025, compared to 1.23% in Q4 2024 and 1.39% in Q1 2024 [4][14] - The company maintained a solid net interest margin of 3.93%, with a 3.4% growth in fully taxable equivalent net interest income year-over-year [3][5] Financial Performance - Net interest income for Q1 2025 was 88.6 million, down from 92.0millioninQ42024,attributedtotwofewerbusinessdaysandadecreaseinaverageearningassets[5][15]−Theaveragetotaldepositsdecreasedby92.0 million in Q4 2024, attributed to two fewer business days and a decrease in average earning assets [5][15] - The average total deposits decreased by 111.6 million to 8.3billionduringQ12025,whiletransactiondepositsgrewby8.3 billion during Q1 2025, while transaction deposits grew by 147.7 million to 7.4billion[8][18]−Non−interestincomeincreasedto7.4 billion [8][18] - Non-interest income increased to 15.4 million in Q1 2025 from 11.1millioninQ42024,drivenbyhighermortgagebankingincome[9][19]AssetQuality−Thecompanyrecordedaprovisionexpenseforcreditlossesof11.1 million in Q4 2024, driven by higher mortgage banking income [9][19] Asset Quality - The company recorded a provision expense for credit losses of 10.2 million in Q1 2025, significantly higher than 2.0millioninQ42024,primarilyduetothefraud−relatedcharge−off[7][17]−Non−performingloansdecreasedto0.452.0 million in Q4 2024, primarily due to the fraud-related charge-off [7][17] - Non-performing loans decreased to 0.45% of total loans, while non-performing assets decreased to 0.46% [7][17] - The allowance for credit losses as a percentage of loans was 1.18% at March 31, 2025, compared to 1.22% at December 31, 2024 [7][17] Capital and Equity - The Common Equity Tier 1 capital ratio was reported at 13.6%, with tangible book value per share increasing by 0.66 to 25.94duringthequarter[3][12]−Shareholders′equityroseby25.94 during the quarter [3][12] - Shareholders' equity rose by 24.2 million to 1.3billion,primarilyduetoretainedearningsgrowthfromnetincome[12][13]LoanPortfolio−Totalloansamountedto1.3 billion, primarily due to retained earnings growth from net income [12][13] Loan Portfolio - Total loans amounted to 7.6 billion as of March 31, 2025, a decrease from 7.8billionattheendofQ42024,withquarterlyloanfundingsof7.8 billion at the end of Q4 2024, with quarterly loan fundings of 255.7 million [6][34] - The weighted average rate on new loans was 7.3%, compared to a weighted average yield of 6.4% on the loan portfolio [6][34]