In This Article:
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Earnings: $33.1 million or $0.86 per diluted share.
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Return on Average Tangible Assets: 1.4%.
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Return on Average Tangible Common Equity: 14.8%.
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Pre-Provision Net Revenue Growth: 20.6% on a linked quarter basis.
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Net Interest Income Growth: 20% annualized.
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Net Interest Margin: 3.87%, expanded by 11 basis points.
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Deposit Growth: $120 million on a spot basis, $21 million in average balances.
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Nonperforming Loan Ratio: Decreased to the lowest level since early 2023.
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Net Charge-Offs: 18 basis points annualized for the quarter.
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Provision Expense: $2 million.
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Allowance to Total Loans Ratio: 1.23%.
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Noninterest Income: $18.4 million, increased by $4.4 million over the prior quarter.
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Noninterest Expense: $64.2 million.
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Tangible Book Value Per Share: $24.91, grew 5%.
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Loan Fundings: $359 million with a weighted average rate of 8.5%.
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Service Charges Growth: Increased by 14%.
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Other Noninterest Income Growth: 31% since the third quarter of 2023.
Release Date: October 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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National Bank Holdings Corp (NYSE:NBHC) delivered strong earnings for the third quarter, with earnings of $33.1 million or $0.86 per diluted share.
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The company achieved a return on average tangible assets of 1.4% and a return on average tangible common equity of 14.8%.
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Fully taxable equivalent net interest margin expanded by 11 basis points to 3.87% during the third quarter.
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Deposit balances grew by $120 million on a spot basis, indicating strong deposit growth.
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Noninterest income increased to $18.4 million, driven by growth in treasury management fees and other fee-based businesses.
Negative Points
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Noninterest expense increased to $64.2 million, partly due to continued investments in technology and an additional payroll day.
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The provision expense for the quarter was $2 million, driven by changes in the CECL models, specifically the unemployment rate outlook.
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The allowance to total loans ratio ended the quarter at 1.23%, indicating a cautious approach to potential loan losses.
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The company projects a slight decline in noninterest income for the fourth quarter due to seasonality.
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There are several credits impacting the 30-day past due bucket, requiring close monitoring and management.
Q & A Highlights
Q: Can you provide the September margin average compared to the quarterly average? A: September's monthly margin was higher than our Q3 margin of 3.8%. This improvement was due to proactive efforts to reduce deposit costs, which positively impacted the margin.