National Bank (NYSE:NBHC) Q3 2025 Earnings Call October 22, 2025 11:00 AM ET Company ParticipantsTim Laney - Chairman and CEOBrett Rabatin - Managing Director and Head of Equity ResearchEmily Gooden - Chief Accounting Officer and Director of Investor RelationsNicole Van Denabeele - CFOAldis Birkans - PresidentConference Call ParticipantsAndrew Terrell - Managing Director and Research Analyst of Regional BanksKelly Motta - Managing Director and Equity Research AnalystJeff Rulis - Managing Director and Senior ...

Core Viewpoint - National Bank Holdings Corporation reported strong financial results for the second quarter of 2025, with significant increases in net income, earnings per share, and returns on equity, driven by a robust net interest margin and disciplined credit management [3][4]. Financial Performance - Net income for Q2 2025 was $34.0 million, a 40.4% increase from $24.2 million in Q1 2025 [4]. - Earnings per diluted share rose to $0.88 from $0.63 in the previous quarter [4]. - Fully taxable equivalent pre-provision net revenue increased by 14.3% annualized to $43.5 million [4]. - Year-over-year, fully taxable equivalent pre-provision net revenue grew by 19.9% [4]. Return Ratios - Return on average tangible common equity reached 14.18%, up from 10.64% in Q1 2025 [4]. - Return on average tangible assets increased to 1.49% from 1.09% in the previous quarter [4]. - Return on average equity improved to 10.15% from 7.42% in Q1 2025 [4]. Net Interest Income - Fully taxable equivalent net interest income rose to $89.3 million, attributed to one additional day in the quarter [5]. - The net interest margin widened to 3.95%, driven by a three basis point increase in earning asset yields [5]. Loan Portfolio - Total loans amounted to $7.5 billion as of June 30, 2025, with quarterly loan fundings of $322.7 million [6]. - The weighted average rate on new loans was 7.4%, compared to a 6.5% yield on the overall loan portfolio [6]. Asset Quality - The company recorded no provision expense for credit losses, a significant improvement from $10.2 million in the previous quarter [7]. - Annualized net charge-offs were 0.05% of average total loans, down from 0.80% [7]. - Non-performing loans remained stable at 0.45% of total loans [7]. Deposits - Average total deposits decreased by $58.8 million to $8.2 billion during Q2 2025 [8]. - The loan to deposit ratio was 90.5%, slightly down from 90.8% [8]. Non-Interest Income and Expenses - Non-interest income increased by 11.0% to $17.1 million, driven by gains from partnership investments and bank card fees [9]. - Non-interest expenses totaled $62.9 million, reflecting disciplined expense management [10]. Capital Position - The Common Equity Tier 1 capital ratio stood at 14.2%, indicating strong capital growth [3]. - Shareholders' equity increased by $23.2 million to $1.4 billion, primarily due to retained earnings growth [12]. Year-Over-Year Comparison - For the first six months of 2025, net income was $58.3 million, a slight increase from $57.5 million in the same period of 2024 [14]. - Fully taxable equivalent net interest income rose to $177.9 million, with a net interest margin of 3.94% [15].

Core Insights - National Bank Holdings Corporation (NBHC) has announced a strategic partnership with 2UniFi to enhance financial solutions for small and medium-sized businesses in the U.S. [1][2] - The partnership will integrate 2UniFi within Nav's marketplace, which serves over 1 million users, providing access to deposit and lending solutions [1][2] - NBHC has made a $5 million strategic investment in Nav, aiming to empower small business owners with financial health tools [3] Company Overview - National Bank Holdings Corporation operates a network of over 85 banking centers across several states, including Colorado, Kansas, Utah, Wyoming, Texas, New Mexico, and Idaho [4] - The bank focuses on delivering high-quality client service and is committed to stakeholder results through its various banking subsidiaries [4] Nav Technologies Overview - Nav is recognized as the leading credit and financial health platform for small businesses, offering insights into cash flow and credit alongside financing options [6] - The platform allows small business owners to build and manage their business credit and see potential financing qualifications before applying [6] - Nav has raised over $100 million in capital from notable investors, including Goldman Sachs and Kleiner Perkins [6]