National Bank Holdings Corporation Announces First Quarter 2025 Financial Results

Core Points - National Bank Holdings Corporation reported a net income of $24.2 million for Q1 2025, a decrease from $28.2 million in Q4 2024 and $31.4 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, down from $0.73 in Q4 2024 and $0.82 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 $92.0 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 $8.3 billion during Q1 2025, while transaction deposits grew by $147.7 million to $7.4 billion [8][18] - Non-interest income increased to $15.4 million in Q1 2025 from $11.1 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 $2.0 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 $25.94 during the quarter [3][12] - Shareholders' equity rose by $24.2 million to $1.3 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 $7.8 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]