National Bank Holdings Corporation Announces First Quarter 2025 Financial Results

Core Viewpoint - National Bank Holdings Corporation reported a net income of $24.2 million for Q1 2025, reflecting a decrease from $28.2 million in Q4 2024, primarily due to a $10.2 million provision expense related to a loan charge-off from suspected fraud [3][4]. Financial Performance - Net income for Q1 2025 was $24.2 million or $0.63 per diluted share, down from $28.2 million or $0.73 per diluted share in Q4 2024 and $31.4 million or $0.82 per diluted share in Q1 2024 [4][15]. - The return on average tangible assets was 1.09% in Q1 2025, compared to 1.23% in Q4 2024 and 1.39% in Q1 2024 [4][15]. - The return on average tangible common equity was 10.64% in Q1 2025, down from 12.31% in Q4 2024 and 15.14% in Q1 2024 [4][15]. Net Interest Income - Fully taxable equivalent net interest income totaled $88.6 million in Q1 2025, a decrease from $92.0 million in Q4 2024, attributed to two fewer business days and a decrease in average earning assets [5][16]. - The net interest margin narrowed to 3.93%, down six basis points from the previous quarter, driven by a decrease in earning asset yields [5][16]. Loan Portfolio - Total loans amounted to $7.6 billion as of March 31, 2025, a decrease from $7.8 billion in Q4 2024, with quarterly loan fundings of $255.7 million [6][17]. - The weighted average rate on new loans was 7.3%, compared to a weighted average yield of 6.4% on the loan portfolio [6][17]. 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 a charge-off related to suspected fraud [7][18]. - Non-performing loans decreased to 0.45% of total loans, while non-performing assets decreased to 0.46% [7][18]. Deposits - Average total deposits decreased by $111.6 million to $8.3 billion in Q1 2025, with average transaction deposits also declining [8][19]. - The loan to deposit ratio was 90.8% as of March 31, 2025, compared to 94.1% in the previous quarter [9][19]. Non-Interest Income and Expense - Non-interest income increased to $15.4 million in Q1 2025 from $11.1 million in Q4 2024, driven by higher mortgage banking income [10][20]. - Non-interest expense decreased to $62.0 million, down from $64.5 million in the previous quarter, primarily due to lower salaries and benefits [11][21]. Capital Position - The Common Equity Tier 1 capital ratio was 13.6% as of March 31, 2025, with tangible book value per share increasing by $0.66 to $25.94 [3][13]. - Shareholders' equity rose to $1.3 billion, driven by growth in retained earnings [13][14].