- NBHC reports Q1 2025 net income of $24.2 million, down from $31.4 million in Q1 2024 due to fraud-related loan charge-off.
- Net interest margin remains robust at 3.93% with 3.4% YoY growth in net interest income.
- Average total deposits decreased by $111.6 million, ending the quarter at $8.3 billion with a strong capital position.
National Bank Holdings Corporation (NBHC, Financial) reported a net income of $24.2 million, or $0.63 per diluted share for the first quarter of 2025. This marks a decline from $31.4 million, or $0.82 per share, recorded in the first quarter of 2024. The decrease was predominantly due to a $10.2 million provision expense attributed to a loan charge-off involving suspected fraud.
The bank maintained a solid net interest margin of 3.93%, despite a 6 basis point quarterly contraction. This margin facilitated a 3.4% year-over-year growth in fully taxable equivalent net interest income. Total loans stood at $7.6 billion, and new loan fundings amounted to $255.7 million during the quarter.
NBHC's asset quality showed improvement, with non-performing loans reducing to 0.45% of total loans. The bank's allowance for credit losses was reported at 1.18% of total loans. Capital positions remained strong as well, with the Common Equity Tier 1 ratio at 13.6% and tangible book value per share increasing by $0.66 to $25.94.
Average total deposits decreased by $111.6 million to $8.3 billion, primarily due to a reduction in transaction deposits, which nonetheless represented a high-quality 87.4% of total deposits. The loan-to-deposit ratio improved to 90.8% from 94.1% in the previous quarter, indicating enhanced liquidity.
Overall, the financial results reflect a resilient core operation for NBHC, despite the impact of the one-time charge-off event. The company continues to focus on maintaining strong capital positions and efficient operations.
