National Bank (US:NBHC)2026-01-28 17:02Financial Data and Key Metrics Changes - The company ended 2025 with a tangible book value per share growth of 10% and a CET1 capital ratio of 14.89% [5] - For the fourth quarter, net income was $22.7 million or $0.60 per diluted share, while the full year adjusted net income was $117.6 million or $3.06 per diluted share [9] - The net interest margin for the full year was 3.94%, with a fourth quarter margin of 3.97% [8][11] Business Line Data and Key Metrics Changes - The company originated $591 million in total loans during the fourth quarter, with $429 million coming from commercial loan originations, marking a record for the company [24] - The loan portfolio is projected to grow approximately 10% in 2026, starting with a combined portfolio of about $9.4 billion [10] - Non-interest income for the fourth quarter was $14.4 million, while full-year non-interest income is projected to be between $75 million and $80 million for 2026 [12][13] Market Data and Key Metrics Changes - The non-performing asset ratio improved by 11 basis points to 36 basis points of total loans by the end of 2025 [11] - The criticized loan ratio improved by 73 basis points during the year, indicating better asset quality [11] Company Strategy and Development Direction - The company aims to focus on profitable growth following the Vista Bank acquisition, which is expected to enhance service offerings and market presence [6][19] - The strategy includes expanding services such as wealth management and trust services, and enhancing treasury management offerings [19] - The company is optimistic about growth opportunities in Texas and various resort markets, which are becoming primary residences for wealthy clients [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2026 with a clean slate and a focus on growth, despite a noisy fourth quarter due to one-time costs [6][9] - The company anticipates earnings exceeding $1 per share in the fourth quarter of 2026 and full-year earnings exceeding $4 per share in 2027 [17] - Management highlighted the importance of maintaining strong credit quality and a disciplined approach to loan origination [25][84] Other Important Information - The company expects to incur one-time expenses related to the acquisition and rebranding, with a projected non-interest expense of $320 million to $330 million for 2026 [13][15] - The effective tax rate for 2026 is expected to be around 20% due to the integration of Vista and changes in income mix [16] Q&A Session Summary Question: Confirmation of loan growth and margin expectations - Management confirmed a projected 10% loan growth in 2026, a margin near 4%, and earnings expectations of over $1 in Q4 2026 and over $4 in 2027 [37] Question: 2UniFi revenue and expense guidance - Management projected $2 million to $4 million in 2UniFi revenue for 2026, with expenses held flat at $22 million [39][55] Question: Credit quality and charge-offs - Management addressed that the decision to charge off certain loans was made to ensure a clean slate for 2026, emphasizing a proactive approach to problem loans [43] Question: Growth drivers for 2026 - Management indicated that growth would be driven by strong production in all markets, particularly Texas and resort areas, with confidence in achieving targets [46][49] Question: Partnership developments for 2UniFi - Management acknowledged delays in finalizing a partnership for 2UniFi but emphasized a strong focus on client activation and scaling the business [66] Question: Share buyback appetite - Management expressed strong interest in share buybacks, having announced a $100 million buyback authorization [72]