National Bank Holdings Corporation (NBHC) Bundle
A Brief History of National Bank Holdings Corporation
Company Overview
National Bank Holdings Corporation (NBHC) is a bank holding company that operates primarily through its wholly-owned subsidiary, NBH Bank. The company focuses on commercial banking services, including loans, deposits, and other financial products. As of September 30, 2024, NBHC's total assets amounted to approximately $9.96 billion.
Financial Performance
For the third quarter of 2024, NBHC reported a net income of $33.1 million, translating to $0.86 per diluted share. This marks an increase from the previous quarter's net income of $26.1 million and a decrease from $36.1 million in the same quarter of 2023. Total interest income for the quarter was $138.0 million, while total interest expense was $50.4 million, resulting in a net interest income of $87.7 million.
| Financial Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | $33.1 million | $26.1 million | $36.1 million |
| Earnings per Share (Diluted) | $0.86 | $0.68 | $0.95 |
| Total Interest Income | $138.0 million | $132.4 million | $126.1 million |
| Total Interest Expense | $50.4 million | $48.9 million | $38.3 million |
| Net Interest Margin | 3.87% | 3.76% | 3.92% |
Assets and Liabilities
As of September 30, 2024, the total liabilities of NBHC were reported at $8.69 billion, with total shareholders' equity of approximately $1.27 billion. The loan-to-deposit ratio was 90.8%, indicating a balanced approach to leveraging deposits for loan generation.
| Balance Sheet Item | Value (as of Sept 30, 2024) |
|---|---|
| Total Assets | $9.96 billion |
| Total Liabilities | $8.69 billion |
| Shareholders' Equity | $1.27 billion |
| Loan-to-Deposit Ratio | 90.8% |
Loan Portfolio
NBHC's loan portfolio stood at approximately $7.71 billion as of September 30, 2024, reflecting a slight decrease from $7.72 billion in the previous quarter. The company reported new loan fundings totaling $359.3 million for the third quarter, with a significant portion coming from commercial loans.
| Loan Type | Amount (as of Sept 30, 2024) |
|---|---|
| Total Loans Outstanding | $7.71 billion |
| Commercial Loans Fundings | $219.1 million |
| New Loan Fundings (Total) | $359.3 million |
Credit Quality
The allowance for credit losses as a percentage of total loans was 1.23% as of September 30, 2024. Non-performing loans decreased to $23.5 million, representing 0.31% of total loans. The company recorded a provision expense for credit losses of $2.0 million in the third quarter of 2024.
| Credit Quality Metric | Value (as of Sept 30, 2024) |
|---|---|
| Allowance for Credit Losses | $95.0 million |
| Non-Performing Loans | $23.5 million |
| Provision Expense for Credit Losses | $2.0 million |
Dividend Information
NBHC announced a quarterly cash dividend of $0.29 per share, which reflects a 3.6% increase from the previous dividend of $0.28. This dividend will be payable on December 13, 2024, to shareholders on record as of November 29, 2024.
A Who Owns National Bank Holdings Corporation (NBHC)
Major Shareholders
The ownership structure of National Bank Holdings Corporation (NBHC) as of 2024 is characterized by a mix of institutional investors and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Name | Ownership Percentage | Shares Owned |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 10.45% | 3,842,000 |
| Institutional Investor | BlackRock, Inc. | 9.92% | 3,646,000 |
| Institutional Investor | JPMorgan Chase & Co. | 5.67% | 2,080,000 |
| Individual Investor | Tim Laney (CEO) | 2.15% | 800,000 |
| Institutional Investor | State Street Corporation | 4.50% | 1,650,000 |
| Other | Other Shareholders | 67.31% | 24,000,000 |
Stock Performance
As of September 30, 2024, the stock price of NBHC was reported at $34.01 per share, reflecting a year-to-date increase of approximately 12%. This performance is indicative of the company’s stable financial position and growth prospects in the banking sector.
Shareholder Equity
As of September 30, 2024, NBHC reported total shareholders' equity of $1.3 billion, with a common book value per share of $34.01 and a tangible common book value per share of $24.91.
Dividends
In December 2024, NBHC announced a quarterly cash dividend of $0.29 per share, marking an increase of 3.6% from the previous dividend of $0.28. This reflects the company’s commitment to returning value to shareholders.
Market Capitalization
As of September 30, 2024, NBHC had a market capitalization of approximately $1.3 billion, calculated based on the total shares outstanding and the current stock price.
Recent Shareholder Changes
In the recent quarter, there were no significant changes in the major shareholders, with institutional investors maintaining their positions. The overall ownership distribution remains stable, indicating a consistent interest from both institutional and retail investors.
Conclusion on Ownership Dynamics
The ownership dynamics of National Bank Holdings Corporation highlight a robust mix of institutional and individual investors, with a strong emphasis on long-term growth and stability. The positive stock performance and consistent dividend payments further reinforce investor confidence in the company's strategic direction.
National Bank Holdings Corporation (NBHC) Mission Statement
National Bank Holdings Corporation (NBHC) operates with a mission to build a leading community bank franchise committed to high-quality client service and stakeholder results. This mission is reflected in its strategic initiatives and operational goals across its banking subsidiaries, including NBH Bank and Bank of Jackson Hole Trust. As of 2024, the company focuses on providing comprehensive financial services to individual consumers, businesses, and governmental entities across its operational footprint.
Financial Overview
As of September 30, 2024, NBHC reported a net income of $33.1 million, or $0.86 per diluted share, marking a 26.7% increase from the previous quarter. The company’s return on average assets stood at 1.32%, while the return on average tangible common equity was reported at 14.84%.
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income ($000's) | $33,105 | $26,135 | $36,087 |
| Earnings Per Share - Diluted | $0.86 | $0.68 | $0.94 |
| Return on Average Assets | 1.32% | 1.06% | 1.46% |
| Return on Average Tangible Common Equity | 14.84% | 12.44% | 18.38% |
Operational Highlights
NBHC's total loans as of September 30, 2024, amounted to $7.7 billion, with a loan-to-deposit ratio of 90.8%. The company also reported average total deposits of $8.4 billion, reflecting a consistent growth in its deposit base.
| Operational Metric | Value |
|---|---|
| Total Loans ($ billion) | $7.7 |
| Average Total Deposits ($ billion) | $8.4 |
| Loan-to-Deposit Ratio | 90.8% |
| Average Transaction Deposits ($ billion) | $7.4 |
Capital and Asset Quality
NBHC maintains strong capital ratios, with a common equity tier 1 capital ratio of 12.88% and a tier 1 leverage ratio of 10.44% as of September 30, 2024. The allowance for credit losses as a percentage of total loans was reported at 1.23%, indicating a stable asset quality profile.
| Capital Metrics | Value |
|---|---|
| Common Equity Tier 1 Capital Ratio | 12.88% |
| Tier 1 Leverage Ratio | 10.44% |
| Allowance for Credit Losses (% of Loans) | 1.23% |
| Non-Performing Loans (% of Total Loans) | 0.31% |
Dividend Policy
The company announced a quarterly dividend increase of 3.6% from $0.28 to $0.29 per share, marking the eighth consecutive semiannual increase since early 2021. This dividend is set to be payable on December 13, 2024, to shareholders of record as of November 29, 2024.
| Dividend Information | Value |
|---|---|
| Previous Dividend ($) | $0.28 |
| New Dividend ($) | $0.29 |
| Dividend Increase (%) | 3.6% |
| Dividend Payment Date | December 13, 2024 |
Strategic Focus and Future Outlook
NBHC continues to prioritize growth through its diversified revenue streams, with a particular emphasis on enhancing client service and operational efficiency. The management remains committed to closely monitoring its loan portfolio and maintaining a strong capital position to support future growth.
| Strategic Focus Areas | Details |
|---|---|
| Client Service Enhancement | Focus on high-quality service delivery across all banking centers |
| Operational Efficiency | Continuous improvement in efficiency ratios |
| Loan Portfolio Monitoring | Regular stress testing and risk management |
| Capital Position | Strong capital ratios to support growth initiatives |
How National Bank Holdings Corporation (NBHC) Works
Overview of National Bank Holdings Corporation
National Bank Holdings Corporation (NBHC) operates as a bank holding company that manages a community banking franchise. It delivers a variety of financial services through its subsidiaries, NBH Bank and Bank of Jackson Hole Trust. As of September 30, 2024, NBHC operates over 90 banking centers across Colorado, the greater Kansas City area, Utah, Wyoming, Texas, New Mexico, and Idaho.
Financial Performance
For the third quarter of 2024, NBHC reported a net income of $33.1 million, translating to earnings per share of $0.86, compared to $26.1 million and $0.68 per share in the previous quarter. The financial results highlight a year-to-date net income of $90.6 million for 2024, down from $108.9 million in the same period of 2023.
| Financial Metrics | Q3 2024 | Q2 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|---|
| Net Income ($000's) | 33,105 | 26,135 | 36,087 | 90,631 | 108,927 |
| Earnings per Share - Diluted | 0.86 | 0.68 | 0.94 | 2.36 | 2.85 |
| Return on Average Assets | 1.32% | 1.06% | 1.46% | 1.22% | 1.50% |
| Return on Average Tangible Common Equity | 14.84% | 12.44% | 18.38% | 14.14% | 18.81% |
Net Interest Income
In Q3 2024, NBHC's fully taxable equivalent net interest income increased to $89.5 million, up from $85.3 million in Q2 2024. The net interest margin expanded to 3.87%, reflecting a 13 basis point increase in earning asset yields. The average interest rate on new loan originations was reported at 8.5%.
Loan Portfolio
As of September 30, 2024, total loans amounted to $7.7 billion, remaining stable compared to the prior quarter. The company recorded quarterly loan fundings of $359.3 million, with commercial loan fundings accounting for $219.1 million of this total.
| Loan Composition | Amount ($000's) | Change from Prior Quarter |
|---|---|---|
| Total Loans | 7,714,495 | -0.1% |
| Commercial Loans | 4,198,746 | 1.4% |
| Residential Real Estate | 933,644 | 1.1% |
| Consumer Loans | 13,600 | -5.5% |
Asset Quality
The allowance for credit losses stood at $95.0 million, representing 1.23% of total loans as of September 30, 2024. Non-performing loans decreased to 0.31% of total loans, indicating effective management of credit risk. The company recorded a provision expense for credit losses of $2.0 million during the quarter.
Deposits
Average total deposits increased to $8.4 billion in Q3 2024, showing a growth of $21.3 million from the previous quarter. The loan-to-deposit ratio was reported at 90.8% as of September 30, 2024.
| Deposit Metrics | Amount ($000's) | Change from Prior Quarter |
|---|---|---|
| Average Total Deposits | 8,401,020 | 0.3% |
| Average Transaction Deposits | 7,361,457 | 0.0% |
| Loan-to-Deposit Ratio | 90.8% | -1.4% |
Non-Interest Income and Expense
Non-interest income for Q3 2024 was reported at $18.4 million, an increase from $14.0 million in Q2 2024. This was driven by growth in diversified sources of fee revenue. Non-interest expenses totaled $64.2 million, reflecting an increase from the previous quarter due to higher salaries and technology investments.
| Non-Interest Metrics | Amount ($000's) |
|---|---|
| Non-Interest Income | 18,389 |
| Non-Interest Expense | 64,162 |
Capital Ratios
As of September 30, 2024, the Common Equity Tier 1 capital ratio was 12.88%, and the Tier 1 leverage ratio was 10.44%. Shareholders' equity totaled $1.3 billion, which reflects a significant increase of $44.4 million during the quarter.
| Capital Metrics | Value |
|---|---|
| Common Equity Tier 1 Capital Ratio | 12.88% |
| Tier 1 Leverage Ratio | 10.44% |
| Shareholders' Equity ($000's) | 1,274,873 |
How National Bank Holdings Corporation (NBHC) Makes Money
Net Interest Income
As of September 30, 2024, National Bank Holdings Corporation (NBHC) reported a fully taxable equivalent net interest income of $260.5 million for the year-to-date, a decrease from $276.9 million in the same period of 2023. The net interest margin was 3.80%, a decline from 4.12% year-over-year. The cost of funds rose to 2.31%
Loan Portfolio
NBHC's total loans outstanding were $7.7 billion as of September 30, 2024, with an average interest rate on new loan originations of 8.5%. The company achieved new loan fundings of $1.5 billion over the trailing twelve months, primarily from commercial loan fundings of $1.0 billion.
Deposits
Average total deposits increased to $8.4 billion, up 5.3% year-over-year. The loan-to-deposit ratio was 90.8% at the end of Q3 2024. The mix of transaction deposits to total deposits remained strong at 88%.
Non-Interest Income
NBHC reported non-interest income of $50.1 million for the first nine months of 2024, which reflects a 4.7% increase from the prior year. Key components included:
- Service charges: $13.6 million
- Bank card fees: $14.3 million
- Mortgage banking income: $8.9 million
- Other non-interest income: $13.3 million
Non-Interest Expense
Non-interest expenses totaled $190.1 million for the year-to-date, an increase of 5.7% compared to 2023. The largest contributors were:
- Salaries and benefits: $110.8 million
- Occupancy and equipment: $29.8 million
- Data processing: $12.6 million
Provision for Credit Losses
Provision expense for credit losses was $4.8 million for the first nine months of 2024, compared to $3.7 million in the same period of 2023. The allowance for credit losses as a percentage of loans was 1.23%.
Financial Performance Summary
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income | $33.1 million | $36.1 million | -7.5% |
| Earnings per Share (Diluted) | $0.86 | $0.94 | -8.5% |
| Return on Average Assets | 1.32% | 1.46% | -0.14% |
| Return on Average Tangible Common Equity | 14.84% | 18.38% | -3.54% |
| Net Interest Margin | 3.80% | 4.12% | -0.32% |
Capital Position
As of September 30, 2024, NBHC’s shareholders’ equity was $1.3 billion, with a common equity tier 1 capital ratio of 12.88%. The tier 1 leverage ratio was 10.44%.
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Article updated on 8 Nov 2024
Resources:
- National Bank Holdings Corporation (NBHC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of National Bank Holdings Corporation (NBHC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View National Bank Holdings Corporation (NBHC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.