National Bank Holdings Corporation Announces Second Quarter 2025 Financial Results

DENVER, July 22, 2025 (GLOBE NEWSWIRE) -- National Bank Holdings Corporation (the “Company”) reported: For the quarter(1) For the six months ended(1) 2Q25 1Q25 2Q24 2025 2024Net income ($000's)$34,022 $24,231 $26,135 $58,253 $57,526 Earnings per share - diluted$0.88 $0.63 $0.68 $1.51 $1.50 Return on average assets 1.38% 0.99% 1.06% 1.19% 1.17%Return on average tangible assets(2) 1.49% 1.09% 1.17% 1.29% 1.28%Return on average equity 10.15% 7.42% 8.46% 8.80% 9.37%Return on average tangible common equity(2) 14.18% 10.64% 12.44% 12.44% 13.77% (1) Ratios are annualized.(2) See non-GAAP reconciliations below. In announcing these results, Chief Executive Officer Tim Laney shared, “We delivered quarterly earnings of $0.88 of earnings per diluted share and a return on average tangible common equity of 14.18%. Year-over-year fully taxable equivalent pre-provision net revenues grew by 19.9% highlighted by a strong net interest margin of 3.95%. We remain diligent in monitoring our loan book and maintaining a disciplined approach to extending credit, which resulted in just 5 basis points of annualized net charge-offs during the quarter.” Mr. Laney added, “Our solid results continue to generate meaningful capital growth with a Common Equity Tier 1 capital ratio of 14.2%. Our excess capital position provides us with optionality to act on a variety of growth opportunities. We are pleased with the recent launch of 2UniFi, an innovative financial ecosystem that we believe can change the way business owners and operators access the U.S. banking system. 2UniFi is built to empower business entrepreneurs with banking and business tools that save time, reduce stress, and help them grow their business.” Second Quarter 2025 Results(All comparisons refer to the first quarter of 2025, except as noted) Net income increased $9.8 million, or 40.4%, to $34.0 million or $0.88 per diluted share, compared to $24.2 million or $0.63 per diluted share. Fully taxable equivalent pre-provision net revenue increased $1.5 million, or 14.3% annualized, to $43.5 million. The return on average tangible assets increased 40 basis points to 1.49%, and the return on average tangible common equity increased 3.54% to 14.18%. Compared to the second quarter of 2024, fully taxable equivalent pre-provision net revenue increased $7.2 million or 19.9%. Net Interest IncomeFully taxable equivalent net interest income increased $0.7 million to $89.3 million due to one additional day during the second quarter. The fully taxable equivalent net interest margin widened two basis points to 3.95%, driven by a three basis point increase in earning asset yields, partially offset by an increase in the cost of funds. LoansLoans totaled $7.5 billion at June 30, 2025, compared to $7.6 billion. We generated quarterly loan fundings of $322.7 million, led by commercial loan fundings of $219.6 million. The second quarter’s weighted average rate on new loans at the time of origination was 7.4%, compared to a weighted average yield of 6.5% on our loan portfolio. Asset Quality and Provision for Credit LossesThe Company recorded no provision expense for credit losses, compared to $10.2 million in the previous quarter. Annualized net charge-offs totaled 0.05% of average total loans, compared to 0.80%. Non-performing loans totaled 0.45% of total loans at June 30, 2025, consistent with the previous quarter, and non-performing assets decreased one basis point to 0.45% of total loans and OREO at June 30, 2025. The allowance for credit losses as a percentage of loans increased one basis point to 1.19% at June 30, 2025. DepositsAverage total deposits decreased $58.8 million to $8.2 billion during the second quarter 2025, and average transaction deposits (defined as total deposits less time deposits) decreased $85.3 million to $7.1 billion. The loan to deposit ratio totaled 90.5% at June 30, 2025, compared to 90.8%. The mix of transaction deposits to total deposits was 87.0% at June 30, 2025, compared to 87.4%. Non-Interest IncomeNon-interest income increased $1.7 million, or 11.0%, to $17.1 million during the second quarter. Income from partnership investments increased $0.6 million, bank card fees increased $0.5 million, SBA loan gains on sale increased $0.2 million, and the sales of two previously consolidated banking center properties drove a $1.3 million gain. Mortgage banking income decreased $0.8 million. Non-Interest ExpenseNon-interest expense totaled $62.9 million, compared to $62.0 million in the first quarter, which benefited from the $1.9 million payroll tax credits realized in the first quarter. Excluding the impact from the first quarter’s payroll tax credits, non-interest expense decreased $1.0 million due to our disciplined expense management. The second quarter’s non-interest expense includes $0.3 million of non-recurring restructuring charges as a result of expense reduction actions executed during the quarter. The fully taxable equivalent efficiency ratio improved 42 basis points to 57.3%, excluding other intangible assets amortization. Income tax expense totaled $7.5 million, compared to $5.6 million in the previous quarter, as a result of higher pre-tax income in the second quarter. The effective tax rate was 18.1%, compared to 18.8% in the first quarter. CapitalCapital ratios continue to be well in excess of federal bank regulatory agency “well capitalized” thresholds. The tier 1 leverage ratio totaled 11.18%, and the common equity tier 1 capital ratio totaled 14.17% at June 30, 2025. Shareholders’ equity increased $23.2 million to $1.4 billion at June 30, 2025, primarily driven by $22.5 million of growth in retained earnings from net income after covering the quarter’s dividend, and a $4.1 million improvement in accumulated other comprehensive loss due to changes in the interest rate environment. Common book value per share increased $0.65 to $35.55 at June 30, 2025. Tangible common book value per share increased $0.70 to $26.64 driven by the quarter’s earnings after covering the quarterly dividend, and a $0.11 improvement in accumulated other comprehensive loss. Year-Over-Year Review(All comparisons refer to the first six months of 2024, except as noted) Net income increased $0.7 million to $58.3 million or $1.51 per diluted share, compared to $57.5 million or $1.50 per diluted share. Fully taxable equivalent pre-provision net revenue increased $8.6 million to $85.4 million. The return on average tangible assets increased one basis point to 1.29%, and the return on average tangible common equity was 12.44%, compared to 13.77%. Fully taxable equivalent net interest income increased $6.9 million to $177.9 million. The fully taxable equivalent net interest margin widened 17 basis points to 3.94%, driven by a 21 basis point decrease in the cost of funds, partially offset by a three basis point decrease in earning asset yields. Loans outstanding totaled $7.5 billion as of June 30, 2025, compared to $7.7 billion. New loan fundings over the trailing twelve months totaled $1.4 billion, led by commercial fundings of $928.3 million. The Company recorded $10.2 million of provision expense for credit losses, compared to $2.8 million in the same period prior year. Annualized net charge-offs totaled 0.43% of average total loans, compared to 0.11% net charge-offs in the same period prior year. Non-performing loans totaled 0.45% of total loans at June 30, 2025, compared to 0.34% in the prior year. Non-performing assets totaled 0.45% of total loans and OREO at June 30, 2025, compared to 0.36% in the prior year. The allowance for credit losses as a percentage of loans totaled 1.19% at June 30, 2025, compared to 1.25% at June 30, 2024. Average deposits totaled $8.2 billion, compared to $8.3 billion in the same period prior year, and average transaction deposits totaled $7.2 billion, compared to $7.3 billion in the same period prior year. The mix of transaction deposits to total deposits was 87.0% at June 30, 2025, compared to 87.8%. Non-interest income increased $0.7 million to $32.4 million primarily due to a $0.7 million increase in the gains on sales of previously consolidated banking center properties and a $0.4 million increase in trust income. Non-interest expense decreased $1.0 million to $124.9 million as a result of disciplined expense management and payroll tax credits realized during the first quarter 2025. Income tax expense totaled $13.1 million, consistent with the same period prior year. The effective tax rate was 18.4%, compared to 18.6% in the same period prior year. Conference CallManagement will host a conference call to review the results at 11:00 a.m. Eastern Time on Wednesday, July 23, 2025. Interested parties may listen to this call by dialing (877) 400-0505 using the participant passcode of 9935135 and asking for the NBHC Q2 2025 Earnings Call. The earnings release and a link to the replay of the call will be available on the Company’s website at www.nationalbankholdings.com by visiting the investor relations area. About National Bank Holdings CorporationNational Bank Holdings Corporation is a bank holding company created to build a leading community bank franchise, delivering high quality client service and committed to stakeholder results. Through its bank subsidiaries, NBH Bank and Bank of Jackson Hole Trust, National Bank Holdings Corporation operates a network of over 85 banking centers, serving individual consumers, small, medium and large businesses, and government and non-profit entities. Its banking centers are located in its core footprint of Colorado, the greater Kansas City region, Utah, Wyoming, Texas, New Mexico and Idaho. Its comprehensive residential mortgage banking group primarily serves the bank’s core footprint. Its trust and wealth management business is operated in its core footprint under the Bank of Jackson Hole Trust charter. NBH Bank operates under a single state charter through the following brand names as divisions of NBH Bank: in Colorado, Community Banks of Colorado and Community Banks Mortgage; in Kansas and Missouri, Bank Midwest and Bank Midwest Mortgage; in Texas, Utah, New Mexico and Idaho, Hillcrest Bank and Hillcrest Bank Mortgage; and in Wyoming, Bank of Jackson Hole and Bank of Jackson Hole Mortgage. Additional information about National Bank Holdings Corporation can be found at www.nationalbankholdings.com. For more information visit: cobnks.com, bankmw.com, hillcrestbank.com, bankofjacksonhole.com, or nbhbank.com, or connect with any of our brands on LinkedIn. About Non-GAAP Financial MeasuresCertain of the financial measures and ratios we present, including “tangible assets,” “return on average tangible assets,” “tangible common equity,” “return on average tangible common equity,” “tangible common book value per share,” “tangible common equity to tangible assets,” “non-interest expense excluding other intangible assets amortization,” “efficiency ratio excluding other intangible assets amortization,” “net income excluding the impact of other intangible assets amortization expense, after tax,” “pre-provision net revenue” and “fully taxable equivalent” metrics, are supplemental measures that are not required by, or are not presented in accordance with, U.S. generally accepted accounting principles (GAAP). We refer to these financial measures and ratios as “non-GAAP financial measures.” We consider the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenditures or assets that we believe are not indicative of our primary business operating results or by presenting certain metrics on a fully taxable equivalent basis. We believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present and future periods. These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and you should not rely on non-GAAP financial measures alone as measures of our performance. The non-GAAP financial measures we present may differ from non-GAAP financial measures used by our peers or other companies. We compensate for these differences by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance. A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables. Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements do not discuss historical facts but instead relate to expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance. Forward-looking statements are generally identified by words such as “anticipate,” “believe,” “can,” “would,” “should,” “could,” “may,” “predict,” “seek,” “potential,” “will,” “estimate,” “target,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “intend,” “goal,” “focus,” “maintains,” “future,” “ultimately,” “likely,” “ensure,” “strategy,” “objective,” and similar words or phrases. These statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties. We have based these statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, liquidity, results of operations, business strategy and growth prospects. Forward-looking statements involve certain important risks, uncertainties and other factors, any of which could cause actual results to differ materially from those in such statements and, therefore, you are cautioned not to place undue reliance on such statements. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to: business and economic conditions along with external events both generally and in the financial services industry; susceptibility to credit risk and fluctuations in the value of real estate and other collateral securing a significant portion of our loan portfolio, including with regards to real estate acquired through foreclosure, and the accuracy of appraisals related to such real estate; the allowance for credit losses and fair value adjustments may be insufficient to absorb losses in our loan portfolio; our ability to maintain sufficient liquidity to meet the requirements of deposit withdrawals and other business needs; changes impacting monetary supply and the businesses of our clients and counterparties, including levels of market interest rates, inflation, currency values, monetary and fiscal policies, and the volatility of trading markets; changes in the fair value of our investment securities and the ability of companies in which we invest to commercialize their technology or product concepts; the loss of certain executive officers and key personnel; any service interruptions, cyber incidents or other breaches relating to our technology systems, security systems or infrastructure or those of our third-party providers; the occurrence of fraud or other financial crimes within our business; competition from other financial institutions and financial services providers and the effects of disintermediation within the banking business including consolidation within the industry; changes to federal government lending programs like the Small Business Administration’s Preferred Lender Program and the Federal Housing Administration’s insurance programs, including the impact of a government shutdown of such programs; impairment of our mortgage servicing rights, disruption in the secondary market for mortgage loans, declines in real estate values, or being required to repurchase mortgage loans or reimburse investors; developments in technology, such as artificial intelligence, the success of our digital growth strategy, and our ability to incorporate innovative technologies in our business and provide products and services that satisfy our clients’ expectations for convenience and security; our ability to execute our organic growth and acquisition strategies; the accuracy of projected operating results for assets and businesses we acquire as well as our ability to drive organic loan growth to replace loans in our existing portfolio with comparable loans as loans are paid down; changes to federal, state and local laws and regulations along with executive orders applicable to our business, including tax laws; our ability to comply with and manage costs related to extensive government regulation and supervision, including current and future regulations affecting bank holding companies and depository institutions; the application of any increased assessment rates imposed by the Federal Deposit Insurance Corporation (“FDIC”); claims or legal action brought against us by third parties or government agencies; and other factors, risks, trends and uncertainties described elsewhere in our other filings with the Securities and Exchange Commission (the “SEC”). The forward-looking statements are made as of the date of this press release, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law. Contacts:Analysts/Institutional Investors:Emily Gooden, Chief Accounting Officer and Investor Relations Director, (720) 554-6640, ir@nationalbankholdings.comNicole Van Denabeele, Chief Financial Officer, (720) 529-3370, ir@nationalbankholdings.com NATIONAL BANK HOLDINGS CORPORATIONFINANCIAL SUMMARYConsolidated Statements of Operations (Unaudited)(Dollars in thousands, except share and per share data) For the three months ended For the six months ended June 30, March 31, June 30, June 30, June 30, 2025 2025 2024 2025 2024Total interest and dividend income$131,220 $129,963 $132,447 $261,183 $264,179 Total interest expense 43,811 43,272 48,873 87,083 96,575 Net interest income 87,409 86,691 83,574 174,100 167,604 Taxable equivalent adjustment 1,912 1,910 1,711 3,822 3,403 Net interest income FTE(1) 89,321 88,601 85,285 177,922 171,007 Provision expense for credit losses — 10,200 2,776 10,200 2,776 Net interest income after provision for credit losses FTE(1) 89,321 78,401 82,509 167,722 168,231 Non-interest income: Service charges 4,127 4,118 4,295 8,245 8,686 Bank card fees 4,732 4,194 4,882 8,926 9,460 Mortgage banking income 2,547 3,315 3,296 5,862 5,951 Other non-interest income 5,660 3,749 1,556 9,409 7,626 Total non-interest income 17,066 15,376 14,029 32,442 31,723 Non-interest expense: Salaries and benefits 37,746 34,362 36,933 72,108 73,453 Occupancy and equipment 9,436 10,837 10,120 20,273 20,061 Professional fees 1,680 1,423 1,706 3,103 3,352 Data processing 4,452 4,401 4,117 8,853 8,183 Other non-interest expense 7,670 9,017 8,222 16,687 16,875 Other intangible assets amortization 1,947 1,977 1,977 3,924 3,985 Total non-interest expense 62,931 62,017 63,075 124,948 125,909 Income before income taxes FTE(1) 43,456 31,760 33,463 75,216 74,045 Taxable equivalent adjustment 1,912 1,910 1,711 3,822 3,403 Income before income taxes 41,544 29,850 31,752 71,394 70,642 Income tax expense 7,522 5,619 5,617 13,141 13,116 Net income$34,022 $24,231 $26,135 $58,253 $57,526 Earnings per share - basic$0.89 $0.63 $0.68 $1.52 $1.51 Earnings per share - diluted 0.88 0.63 0.68 1.51 1.50 Common stock dividend 0.30 0.29 0.28 0.59 0.55 (1) Net interest income is presented on a GAAP basis and fully taxable equivalent (FTE) basis, as the Company believes this non-GAAP measure is the preferred industry measurement for this item. The FTE adjustment is for the tax benefit on certain tax exempt loans using the federal tax rate of 21% for each period presented. NATIONAL BANK HOLDINGS CORPORATIONConsolidated Statements of Financial Condition (Unaudited)(Dollars in thousands, except share and per share data) June 30, 2025 March 31, 2025 December 31, 2024 June 30, 2024ASSETS Cash and cash equivalents$296,483 $246,298 $127,848 $144,993 Investment securities available-for-sale 631,947 634,376 527,547 691,076 Investment securities held-to-maturity 717,232 706,912 533,108 554,686 Non-marketable securities 81,124 76,203 76,462 72,987 Loans 7,486,918 7,646,296 7,751,143 7,722,153 Allowance for credit losses (88,893) (90,192) (94,455) (96,457)Loans, net 7,398,025 7,556,104 7,656,688 7,625,696 Loans held for sale 20,784 11,885 24,495 18,787 Other real estate owned 291 615 662 1,526 Premises and equipment, net 209,414 204,567 196,773 177,456 Goodwill 306,043 306,043 306,043 306,043 Intangible assets, net 52,496 54,489 58,432 62,356 Other assets 284,890 301,378 299,635 315,245 Total assets$9,998,729 $10,098,870 $9,807,693 $9,970,851 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Non-interest bearing demand deposits$2,168,574 $2,215,313 $2,213,685 $2,229,432 Interest bearing demand deposits 1,240,698 1,337,905 1,411,860 1,420,942 Savings and money market 3,785,951 3,812,312 3,592,312 3,703,810 Total transaction deposits 7,195,223 7,365,530 7,217,857 7,354,184 Time deposits 1,074,261 1,058,677 1,020,036 1,022,741 Total deposits 8,269,484 8,424,207 8,237,893 8,376,925 Securities sold under agreements to repurchase 18,513 20,749 18,895 19,465 Long-term debt 54,385 54,588 54,511 54,356 Federal Home Loan Bank advances 185,000 80,000 50,000 35,000 Other liabilities 118,851 190,018 141,319 237,461 Total liabilities 8,646,233 8,769,562 8,502,618 8,723,207 Shareholders' equity: Common stock 515 515 515 515 Additional paid in capital 1,167,719 1,168,433 1,167,431 1,161,804 Retained earnings 544,428 521,939 508,864 469,630 Treasury stock (304,254) (301,531) (301,694) (303,880)Accumulated other comprehensive loss, net of tax (55,912) (60,048) (70,041) (80,425)Total shareholders' equity 1,352,496 1,329,308 1,305,075 1,247,644 Total liabilities and shareholders' equity$9,998,729 $10,098,870 $9,807,693 $9,970,851 SHARE DATA Average basic shares outstanding 38,075,896 38,068,455 38,327,964 38,210,869 Average diluted shares outstanding 38,151,810 38,229,869 38,565,164 38,372,777 Ending shares outstanding 38,045,622 38,094,105 38,054,482 37,899,453 Common book value per share$35.55 $34.90 $34.29 $32.92 Tangible common book value per share(1)(non-GAAP) 26.64 25.94 25.28 23.74 CAPITAL RATIOS Average equity to average assets 13.62% 13.35% 13.10% 12.57%Tangible common equity to tangible assets(1) 10.49% 10.13% 10.16% 9.35%Tier 1 leverage ratio 11.18% 10.89% 10.69% 10.20%Common equity tier 1 risk-based capital ratio 14.17% 13.61% 13.20% 12.41%Tier 1 risk-based capital ratio 14.17% 13.61% 13.20% 12.41%Total risk-based capital ratio 16.07% 15.49% 15.11% 14.32% (1) Represents a non-GAAP financial measure. See non-GAAP reconciliations below. NATIONAL BANK HOLDINGS CORPORATIONLoan Portfolio (Dollars in thousands) Period End Loan Balances by Type June 30, 2025 June 30, 2025 vs. March 31, 2025 vs. June 30, 2024 June 30, 2025 March 31, 2025 % Change June 30, 2024 % ChangeOriginated: Commercial: Commercial and industrial$1,829,984 $1,871,301 (2.2)% $1,906,095 (4.0)%Municipal and non-profit 1,125,330 1,116,724 0.8% 1,063,706 5.8%Owner-occupied commercial real estate 1,051,964 1,026,692 2.5% 921,122 14.2%Food and agribusiness 213,254 251,120 (15.1)% 248,401 (14.1)%Total commercial 4,220,532 4,265,837 (1.1)% 4,139,324 2.0%Commercial real estate non-owner occupied 1,118,730 1,136,176 (1.5)% 1,116,424 0.2%Residential real estate 915,213 915,139 0.0% 923,313 (0.9)%Consumer 12,050 11,955 0.8% 14,385 (16.2)%Total originated 6,266,525 6,329,107 (1.0)% 6,193,446 1.2% Acquired: Commercial: Commercial and industrial 100,545 105,493 (4.7)% 124,104 (19.0)%Municipal and non-profit 265 271 (2.2)% 288 (8.0)%Owner-occupied commercial real estate 188,745 198,339 (4.8)% 232,890 (19.0)%Food and agribusiness 31,693 33,831 (6.3)% 48,061 (34.1)%Total commercial 321,248 337,934 (4.9)% 405,343 (20.7)%Commercial real estate non-owner occupied 601,890 659,680 (8.8)% 752,040 (20.0)%Residential real estate 296,795 318,510 (6.8)% 369,003 (19.6)%Consumer 460 1,065 (56.8)% 2,321 (80.2)%Total acquired 1,220,393 1,317,189 (7.3)% 1,528,707 (20.2)%Total loans$7,486,918 $7,646,296 (2.1)% $7,722,153 (3.0)% Loan Fundings(1) Second quarter First quarter Fourth quarter Third quarter Second quarter 2025 2025 2024 2024 2024Commercial: Commercial and industrial$133,402 $108,594 $146,600 $93,711 $241,910 Municipal and non-profit 34,393 12,506 49,175 35,677 28,785 Owner occupied commercial real estate 47,233 37,762 117,850 70,517 102,615 Food and agribusiness 4,576 1,338 15,796 19,205 11,040 Total commercial 219,604 160,200 329,421 219,110 384,350 Commercial real estate non-owner occupied 56,770 65,254 119,132 91,809 83,184 Residential real estate 44,470 29,300 30,750 47,322 36,124 Consumer 1,823 970 726 1,010 1,547 Total$322,667 $255,724 $480,029 $359,251 $505,205 (1) Loan fundings are defined as closed end funded loans and net fundings under revolving lines of credit. Net fundings under revolving lines of credit were $15,490, $21,752, $64,375, $16,302 and $19,281 for the periods noted in the table above, respectively. NATIONAL BANK HOLDINGS CORPORATIONSummary of Net Interest Margin(Dollars in thousands) For the three months ended For the three months ended For the three months ended June 30, 2025 March 31, 2025 June 30, 2024 Average Average Average Average Average Average balance Interest rate balance Interest rate balance Interest rateInterest earning assets: Originated loans FTE(1)(2)$6,289,154 $102,399 6.53% $6,335,931 $102,221 6.54% $6,074,199 $101,794 6.74%Acquired loans 1,262,933 19,397 6.16% 1,351,726 19,547 5.86% 1,541,576 23,464 6.12%Loans held for sale 21,115 354 6.72% 19,756 349 7.16% 16,862 318 7.59%Investment securities available-for-sale 701,920 4,661 2.66% 716,938 4,617 2.58% 802,830 5,101 2.54%Investment securities held-to-maturity 713,178 5,173 2.90% 635,961 4,120 2.59% 564,818 2,419 1.71%Other securities 30,560 466 6.10% 31,386 480 6.12% 25,093 377 6.01%Interest earning deposits 57,634 682 4.75% 48,206 539 4.53% 92,388 685 2.98%Total interest earning assets FTE(2)$9,076,494 $133,132 5.88% $9,139,904 $131,873 5.85% $9,117,766 $134,158 5.92%Cash and due from banks$79,131 $77,237 $100,165 Other assets 807,802 794,374 771,475 Allowance for credit losses (90,292) (95,492) (97,741) Total assets$9,873,135 $9,916,023 $9,891,665 Interest bearing liabilities: Interest bearing demand, savings and money market deposits$4,986,119 $32,758 2.64% $5,027,052 $32,511 2.62% $5,109,924 $39,681 3.12%Time deposits 1,062,481 9,087 3.43% 1,035,983 8,756 3.43% 1,015,371 8,536 3.38%Federal Home Loan Bank advances 93,676 1,170 5.01% 107,151 1,105 4.18% 9,505 133 5.63%Other borrowings(3) 41,300 278 2.70% 50,277 382 3.08% 17,449 5 0.12%Long-term debt 54,574 518 3.81% 54,539 518 3.85% 54,307 518 3.84%Total interest bearing liabilities$6,238,150 $43,811 2.82% $6,275,002 $43,272 2.80% $6,206,556 $48,873 3.17%Demand deposits$2,152,899 $2,197,300 $2,254,454 Other liabilities 137,319 119,806 187,499 Total liabilities 8,528,368 8,592,108 8,648,509 Shareholders' equity 1,344,767 1,323,915 1,243,156 Total liabilities and shareholders' equity$ 9,873,135 $9,916,023 $9,891,665 Net interest income FTE(2) $ 89,321 $88,601 $85,285 Interest rate spread FTE(2) 3.06% 3.05% 2.75%Net interest earning assets$ 2,838,344 $2,864,902 $2,911,210 Net interest margin FTE(2) 3.95% 3.93% 3.76%Average transaction deposits$ 7,139,018 $7,224,352 $7,364,378 Average total deposits 8,201,499 8,260,335 8,379,749 Ratio of average interest earning assets to average interest bearing liabilities 145.50% 145.66% 146.91% (1) Originated loans are net of deferred loan fees, less costs, which are included in interest income over the life of the loan.(2) Presented on a fully taxable equivalent basis using the statutory tax rate of 21%. The tax equivalent adjustments included above are $1,912, $1,910 and $1,711 for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively.(3) Other borrowings includes securities sold under agreements to repurchase and cash collateral received from counterparties in connection with derivative swap agreements. NATIONAL BANK HOLDINGS CORPORATIONSummary of Net Interest Margin(Dollars in thousands) For the six months ended June 30, 2025 For the six months ended June 30, 2024 Average Average Average Average balance Interest rate balance Interest rateInterest earning assets: Originated loans FTE(1)(2)$6,312,413 $204,620 6.54% $6,060,524 $202,708 6.73%Acquired loans 1,307,084 38,944 6.01% 1,576,548 47,753 6.09%Loans held for sale 20,439 703 6.94% 14,440 543 7.56%Investment securities available-for-sale 709,387 9,278 2.62% 776,999 9,204 2.37%Investment securities held-to-maturity 674,783 9,293 2.75% 571,989 4,933 1.72%Other securities 30,971 946 6.11% 30,065 993 6.61%Interest earning deposits 52,946 1,221 4.65% 91,983 1,448 3.17%Total interest earning assets FTE(2)$9,108,023 $265,005 5.87% $9,122,548 $267,582 5.90%Cash and due from banks$78,189 $101,374 Other assets 801,127 763,853 Allowance for credit losses (92,878) (97,812) Total assets$9,894,461 $9,889,963 Interest bearing liabilities: Interest bearing demand, savings and money market deposits$5,006,472 $65,269 2.63% $5,028,868 $76,094 3.04%Time deposits 1,049,305 17,843 3.43% 1,002,706 16,120 3.23%Federal Home Loan Bank advances 100,376 2,275 4.57% 118,871 3,314 5.61%Other borrowings(3) 45,764 660 2.91% 18,189 11 0.12%Long-term debt 54,557 1,036 3.83% 54,268 1,036 3.84%Total interest bearing liabilities$6,256,474 $87,083 2.81% $6,222,902 $96,575 3.12%Demand deposits$2,174,977 $2,267,725 Other liabilities 128,611 164,617 Total liabilities 8,560,062 8,655,244 Shareholders' equity 1,334,399 1,234,719 Total liabilities and shareholders' equity$9,894,461 $9,889,963 Net interest income FTE(2) $177,922 $171,007 Interest rate spread FTE(2) 3.06% 2.78%Net interest earning assets$2,851,549 $2,899,646 Net interest margin FTE(2) 3.94% 3.77%Average transaction deposits$7,181,449 $7,296,593 Average total deposits 8,230,754 8,299,299 Ratio of average interest earning assets to average interest bearing liabilities 145.58% 146.60% (1) Originated loans are net of deferred loan fees, less costs, which are included in interest income over the life of the loan.(2) Presented on a fully taxable equivalent basis using the statutory tax rate of 21%. The tax equivalent adjustments included above are $3,822 and $3,403 for the six months ended June 30, 2025 and June 30, 2024, respectively.(3) Other borrowings includes securities sold under agreements to repurchase and cash collateral received from counterparties in connection with derivative swap agreements. NATIONAL BANK HOLDINGS CORPORATIONAllowance for Credit Losses and Asset Quality(Dollars in thousands) Allowance for Credit Losses Analysis As of and for the three months ended June 30, 2025 March 31, 2025 June 30, 2024Beginning allowance for credit losses$90,192 $94,455 $97,607 Charge-offs (1,158) (15,251) (4,605)Recoveries 170 138 499 Provision (release) expense for credit losses (311) 10,850 2,956 Ending allowance for credit losses ("ACL")$88,893 $90,192 $96,457 Ratio of annualized net charge-offs to average total loans during the period 0.05% 0.80% 0.22%Ratio of ACL to total loans outstanding at period end 1.19% 1.18% 1.25%Ratio of ACL to total non-performing loans at period end 266.66% 260.52% 370.18%Total loans$7,486,918 $7,646,296 $7,722,153 Average total loans during the period 7,530,783 7,660,974 7,582,506 Total non-performing loans 33,336 34,620 26,057 Past Due and Non-accrual Loans June 30, 2025 March 31, 2025 June 30, 2024Loans 30-89 days past due and still accruing interest$13,923 $17,003 $27,159 Loans 90 days past due and still accruing interest 7,315 1,012 3,498 Non-accrual loans 33,336 34,620 26,057 Total past due and non-accrual loans$54,574 $52,635 $56,714 Total 90 days past due and still accruing interest and non-accrual loans to total loans 0.54% 0.47% 0.38% Asset Quality Data June 30, 2025 March 31, 2025 June 30, 2024Non-performing loans$33,336 $34,620 $26,057 OREO 291 615 1,526 Total non-performing assets$33,627 $35,235 $27,583 Total non-performing loans to total loans 0.45% 0.45% 0.34%Total non-performing assets to total loans and OREO 0.45% 0.46% 0.36% NATIONAL BANK HOLDINGS CORPORATIONKey Metrics(1) As of and for the three months ended As of and for the six months ended June 30, March 31, June 30, June 30, June 30, 2025 2025 2024 2025 2024Return on average assets 1.38% 0.99% 1.06% 1.19% 1.17%Return on average tangible assets(2) 1.49% 1.09% 1.17% 1.29% 1.28%Return on average equity 10.15% 7.42% 8.46% 8.80% 9.37%Return on average tangible common equity(2) 14.18% 10.64% 12.44% 12.44% 13.77%Loan to deposit ratio (end of period) 90.54% 90.77% 92.18% 90.54% 92.18%Non-interest bearing deposits to total deposits (end of period) 26.22% 26.30% 26.61% 26.22% 26.61%Net interest margin(3) 3.86% 3.85% 3.69% 3.85% 3.69%Net interest margin FTE(2)(3) 3.95% 3.93% 3.76% 3.94% 3.77%Interest rate spread FTE(2)(4) 3.06% 3.05% 2.75% 3.06% 2.78%Yield on earning assets(5) 5.80% 5.77% 5.84% 5.78% 5.82%Yield on earning assets FTE(2)(5) 5.88% 5.85% 5.92% 5.87% 5.90%Cost of funds 2.09% 2.07% 2.32% 2.08% 2.29%Cost of deposits 2.05% 2.03% 2.31% 2.04% 2.23%Non-interest income to total revenue FTE(6) 16.04% 14.79% 14.13% 15.42% 15.65%Efficiency ratio 60.24% 60.76% 64.62% 60.50% 63.17%Efficiency ratio excluding other intangible assets amortization FTE(2) 57.32% 57.74% 61.52% 57.53% 60.14%Pre-provision net revenue$41,544 $40,050 $34,528 $81,594 $73,418 Pre-provision net revenue FTE(2) 43,456 41,960 36,239 85,416 76,821 Total Loans Asset Quality Data(7)(8) Non-performing loans to total loans 0.45% 0.45% 0.34% 0.45% 0.34%Non-performing assets to total loans and OREO 0.45% 0.46% 0.36% 0.45% 0.36%Allowance for credit losses to total loans 1.19% 1.18% 1.25% 1.19% 1.25%Allowance for credit losses to non-performing loans 266.66% 260.52% 370.18% 266.66% 370.18%Net charge-offs to average loans 0.05% 0.80% 0.22% 0.43% 0.11% (1) Ratios are annualized.(2) Ratio represents non-GAAP financial measure. See non-GAAP reconciliations below.(3) Net interest margin represents net interest income, including accretion income on interest earning assets, as a percentage of average interest earning assets.(4) Interest rate spread represents the difference between the weighted average yield on interest earning assets, including FTE income, and the weighted average cost of interest bearing liabilities. Ratio represents a non-GAAP financial measure.(5) Interest earning assets include assets that earn interest/accretion or dividends. Any market value adjustments on investment securities or loans are excluded from interest earning assets.(6) Non-interest income to total revenue represents non-interest income divided by the sum of net interest income FTE and non-interest income. Ratio represents a non-GAAP financial measure.(7) Non-performing loans consist of non-accruing loans and modified loans on non-accrual.(8) Total loans are net of unearned discounts and fees. NATIONAL BANK HOLDINGS CORPORATIONNON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS(Dollars in thousands, except share and per share data) Tangible Common Book Value Ratios June 30, 2025 March 31, 2025 December 31, 2024 June 30, 2024Total shareholders' equity$1,352,496 $1,329,308 $1,305,075 $1,247,644 Less: goodwill and other intangible assets, net (352,854) (354,800) (356,777) (360,732)Add: deferred tax liability related to goodwill 13,741 13,638 13,535 12,871 Tangible common equity (non-GAAP)$1,013,383 $988,146 $961,833 $899,783 Total assets$9,998,729 $10,098,870 $9,807,693 $9,970,851 Less: goodwill and other intangible assets, net (352,854) (354,800) (356,777) (360,732)Add: deferred tax liability related to goodwill 13,741 13,638 13,535 12,871 Tangible assets (non-GAAP)$9,659,616 $9,757,708 $9,464,451 $9,622,990 Tangible common equity to tangible assets calculations: Total shareholders' equity to total assets 13.53% 13.16% 13.31% 12.51%Less: impact of goodwill and other intangible assets, net (3.04)% (3.03)% (3.15)% (3.16)%Tangible common equity to tangible assets (non-GAAP) 10.49% 10.13% 10.16% 9.35% Tangible common book value per share calculations: Tangible common equity (non-GAAP)$1,013,383 $988,146 $961,833 $899,783 Divided by: ending shares outstanding 38,045,622 38,094,105 38,054,482 37,899,453 Tangible common book value per share (non-GAAP)$26.64 $25.94 $25.28 $23.74 NATIONAL BANK HOLDINGS CORPORATION(Dollars in thousands, except share and per share data)Return on Average Tangible Assets and Return on Average Tangible Equity As of and for the three months ended As of and for the six months ended June 30, March 31, June 30, June 30, June 30, 2025 2025 2024 2025 2024Net income$34,022 $24,231 $26,135 $58,253 $57,526 Add: impact of other intangible assets amortization expense, after tax 1,492 1,516 1,516 3,006 3,055 Net income excluding the impact of other intangible assets amortization expense, after tax (non-GAAP)$35,514 $25,747 $27,651 $61,259 $60,581 Average assets$9,873,135 $9,916,023 $9,891,665 $9,894,461 $9,889,963 Less: average goodwill and other intangible assets, net of deferred tax liability related to goodwill (340,330) (342,425) (349,030) (341,320) (350,040)Average tangible assets (non-GAAP)$9,532,805 $9,573,598 $9,542,635 $9,553,141 $9,539,923 Average shareholders' equity$1,344,767 $1,323,915 $1,243,156 $1,334,399 $1,234,719 Less: average goodwill and other intangible assets, net of deferred tax liability related to goodwill (340,330) (342,425) (349,030) (341,320) (350,040)Average tangible common equity (non-GAAP)$1,004,437 $981,490 $894,126 $993,079 $884,679 Return on average assets 1.38% 0.99% 1.06% 1.19% 1.17%Return on average tangible assets (non-GAAP) 1.49% 1.09% 1.17% 1.29% 1.28%Return on average equity 10.15% 7.42% 8.46% 8.80% 9.37%Return on average tangible common equity (non-GAAP) 14.18% 10.64% 12.44% 12.44% 13.77% Fully Taxable Equivalent Yield on Earning Assets and Net Interest Margin As of and for the three months ended As of and for the six months ended June 30, March 31, June 30, June 30, June 30, 2025 2025 2024 2025 2024Interest income$131,220 $129,963 $132,447 $261,183 $264,179 Add: impact of taxable equivalent adjustment 1,912 1,910 1,711 3,822 3,403 Interest income FTE (non-GAAP)$133,132 $131,873 $134,158 $265,005 $267,582 Net interest income$87,409 $86,691 $83,574 $174,100 $167,604 Add: impact of taxable equivalent adjustment 1,912 1,910 1,711 3,822 3,403 Net interest income FTE (non-GAAP)$89,321 $88,601 $85,285 $177,922 $171,007 Average earning assets$9,076,494 $9,139,904 $9,117,766 $9,108,023 $9,122,548 Yield on earning assets 5.80% 5.77% 5.84% 5.78% 5.82%Yield on earning assets FTE (non-GAAP) 5.88% 5.85% 5.92% 5.87% 5.90%Net interest margin 3.86% 3.85% 3.69% 3.85% 3.69%Net interest margin FTE (non-GAAP) 3.95% 3.93% 3.76% 3.94% 3.77% Efficiency Ratio and Pre-Provision Net Revenue As of and for the three months ended As of and for the six months ended June 30, March 31, June 30, June 30, June 30, 2025 2025 2024 2025 2024Net interest income$87,409 $86,691 $83,574 $174,100 $167,604 Add: impact of taxable equivalent adjustment 1,912 1,910 1,711 3,822 3,403 Net interest income FTE (non-GAAP)$89,321 $88,601 $85,285 $177,922 $171,007 Non-interest income$17,066 $15,376 $14,029 $32,442 $31,723 Non-interest expense$62,931 $62,017 $63,075 $124,948 $125,909 Less: other intangible assets amortization (1,947) (1,977) (1,977) (3,924) (3,985)Non-interest expense excluding other intangible assets amortization (non-GAAP)$60,984 $60,040 $61,098 $121,024 $121,924 Efficiency ratio 60.24% 60.76% 64.62% 60.50% 63.17%Efficiency ratio excluding other intangible assets amortization FTE (non-GAAP) 57.32% 57.74% 61.52% 57.53% 60.14%Pre-provision net revenue (non-GAAP)$41,544 $40,050 $34,528 $81,594 $73,418 Pre-provision net revenue, FTE (non-GAAP) 43,456 41,960 36,239 85,416 76,821

National Bank Holdings Corporation Announces Second Quarter 2025 Financial Results

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