• NBHC reports a net income of $36.1 million for Q3 2023, a significant increase from $15.8 million in Q3 2022.

• Earnings per share for Q3 2023 stood at $0.94, up from $0.50 in the same quarter last year.

• Year-to-date net income for 2023 reached $108.9 million, a 100% increase from the same period in 2022.

• The company's return on average tangible assets and return on average tangible common equity also saw substantial growth.

• Warning! GuruFocus has detected 1 Warning Sign with NBHC.

Released on October 24, 2023, National Bank Holdings Corp (NYSE:NBHC)'s third-quarter earnings report reveals a strong financial performance. The company's net income for the quarter was $36.1 million, a significant increase from $15.8 million in Q3 2022. Earnings per share also saw a substantial rise, standing at $0.94 for Q3 2023, up from $0.50 in the same quarter last year.

Financial Highlights

NBHC's year-to-date net income for 2023 reached $108.9 million, marking a 100% increase from the same period in 2022. The return on average tangible assets increased to 1.58%, up from 0.87% in Q3 2022. Similarly, the return on average tangible common equity rose to 18.38%, a significant increase from 8.66% in the same quarter last year.

CEO Tim Laney commented on the results, stating,

We delivered a 10.8% increase in our quarterly earnings to $0.94 per diluted share and a solid return on average tangible common equity of 18.38%. After adjusting for acquisition expenses, year over year pre-provision net revenues grew 54.6%. Year-to-date net income increased $54.4 million or 100% over the prior period to $108.9 million, or $2.85 per diluted share."

Key Financial Details

The report also highlighted that total loans increased by $64.1 million or 3.4% annualized to $7.5 billion at the end of September 2023. The company recorded $1.1 million of provision expense for credit losses, primarily driven by loan growth. The cost of funds totaled 1.80%, compared to 1.48% during the second quarter.

Furthermore, NBHC maintained a well-diversified deposit base with average total deposits increasing by $116.1 million, or 5.8% annualized, to $8.1 billion during the third quarter 2023. Non-interest income also saw an increase of $5.5 million to $19.4 million during the third quarter.

Looking Forward

CEO Tim Laney expressed optimism about the company's future, stating,

We enter the fourth quarter from a position of strength. We operate in high-performing markets where our relationship-based banking model continues to generate a positive impact in our communities and attractive shareholder returns. Our strong balance sheet, solid capital position and diversified funding sources provide optionality to be leveraged for future growth."