DENVER, July 23, 2019 /PRNewswire/ -- National Bank Holdings Corporation (NYSE: NBHC) reported: 


For the quarter


2Q19


1Q19


2Q18

Net income ($000's)

$

20,282


$

18,922


$

17,512

Earnings per share - diluted

$

0.64


$

0.60


$

0.56

Return on average tangible assets(1)


1.44%



1.39%



1.31%

Return on average tangible common equity(1)


13.45%



13.15%



13.52%







(1)


Quarterly ratios are annualized.

National Bank Holdings Corporation Logo. (PRNewsFoto/National Bank Holdings...)

In announcing these results, Chief Executive Officer Tim Laney shared, "We are pleased to report another record quarter with earnings of $0.64 per share. Our relationship banking strategy continues to produce strong results. Specifically, we produced annualized earning asset growth of 10.7%, average annualized non-interest bearing demand deposit growth of 17.2% and record-breaking fee income. Year-to-date, our teams have delivered loan growth of 12.4% annualized, all while maintaining annualized net charge-offs of only 0.02%."

Mr. Laney added, "We believe that our win-win focus on building relationships that benefit our clients and our company will continue to contribute to solid financial performance through the second half of the year. The commitment of our associates in providing simple and fair-minded solutions is creating meaningful returns for our shareholders and our communities."

Second Quarter 2019 Results
(All comparisons refer to the first quarter of 2019, except as noted)

Net income totaled a record $20.3 million during the second quarter of 2019, or $0.64 per diluted share, compared to $18.9 million during the last quarter, or $0.60 per diluted share. The return on average tangible assets increased five basis points to 1.44% and the return on average tangible common equity increased 30 basis points to 13.45%.

Net Interest Income
Fully taxable equivalent net interest income totaled $53.8 million and increased $1.4 million, or 10.6% annualized, driven by strong earning asset growth and higher earning asset yields. Fully taxable equivalent net interest margin narrowed five basis points from the prior quarter to 4.00%. The increase in net interest income was driven by average earning asset growth of $139.9 million, or 10.7% annualized, and a four basis point increase in earning asset yields, which more than offset the 13 basis point increase in cost of funds.

Loans
Originated loans and acquired loans not accounted for under 310-30 ("acquired loans") ended the quarter at $4.3 billion, increasing $86.3 million, or 8.3% annualized, led by originated and acquired commercial loan growth of $126.1 million, or 18.5% annualized. Total second quarter loan originations were $290.5 million, led by commercial loan originations of $210.6 million. The fully taxable equivalent yield on originated loans outstanding increased two basis points during the second quarter of 2019 to 4.90% due to higher new loan yields.

Asset Quality and Provision for Loan Losses
Provision for loan losses of $3.2 million was recorded during the quarter to support originated loan growth and included a $2.4 million specific reserve recorded for one previously acquired commercial loan placed on non-accrual during the quarter. Annualized net charge-offs on originated and acquired loans totaled 0.02%, consistent with the prior quarter. Non-performing originated and acquired loans (comprised of non-accrual loans and non-accrual TDRs) were 0.79% of total originated and acquired loans, compared to 0.63% at March 31, 2019, increasing due to the loan discussed above. The originated and acquired allowance for loan losses was 0.93% of originated and acquired loans, compared to 0.88% in the prior quarter.

Acquired problem loans accounted for under 310-30 totaled $60.6 million at June 30, 2019 and decreased $2.9 million from the first quarter of 2019.

Deposits
Average non-interest bearing demand deposits increased $47.6 million, or 17.2% annualized. Average transaction deposits (defined as total deposits less time deposits) increased $67.2 million, or 7.7% annualized, and average total deposits increased $72.7 million to $4.7 billion, or 6.3% annualized. The cost of deposits was 0.66%, an increase of eight basis points from the prior quarter and 24 basis points over the second quarter of last year. The mix of transaction deposits to total deposits totaled 76.9%, and the mix of non-interest bearing demand deposits to total deposits totaled 24.9%.

Non-Interest Income
Non-interest income totaled $20.7 million and increased $3.6 million primarily due to higher mortgage banking income of $3.5 million, driven by higher levels of 1-4 family mortgage loans sold in the secondary market. Service charges and bank card fees increased a combined $0.6 million and were mostly offset by a decrease in other non-interest income of $0.4 million, due to lower swap fee income during the quarter.

Non-Interest Expense
Non-interest expense totaled $46.5 million and increased $2.1 million from the prior quarter, primarily driven by higher residential banking commissions. Gain on sale of OREO and problem asset workout expense totaled a net expense of $0.4 million, a decrease of $0.3 million from the prior quarter. Other non-interest expense decreased $0.4 million from the prior quarter.

Income tax expense totaled $3.2 million during the second quarter of 2019, compared to $3.4 million during the prior quarter. Included in income tax expense during the second and first quarters of 2019 was $1.3 million and $0.8 million of tax benefit from stock compensation activity, respectively. Adjusting for the stock compensation activity, the effective tax rate for the second quarter of 2019 was 19.4% compared to 18.5% during the first quarter of 2019. The lower rate compared to the statutory rate reflects the continued success of our tax strategies and tax exempt income.

Capital
Capital ratios continue to be strong and in excess of federal bank regulatory agency "well capitalized" thresholds. The leverage ratio at June 30, 2019 for the consolidated company and NBH Bank was 10.60% and 8.79%, respectively. Shareholders' equity totaled $733.9 million at June 30, 2019 and increased $18.9 million from the prior quarter. The increase in shareholders' equity was due to higher retained earnings and accumulated other comprehensive income, driven by the fair market value fluctuations of the available-for-sale investment securities portfolio.

Common book value per share increased $0.47 to $23.57 at June 30, 2019. The tangible common book value per share was $19.83 at June 30, 2019 and increased $0.52 due to the higher retained earnings and accumulated other comprehensive income. Excluding accumulated other comprehensive income, the tangible book value was $19.78.

A common convention in the industry is to add the value of the accretable yield to the tangible book value per share. The value of the June 30, 2019 accretable yield balance on the 310-30 loans of $31.1 million would add $0.76 after-tax to the tangible book value per share. A more conservative methodology that management uses values the excess yield above 5.0% and then considers the timing of the excess accreted interest income recognition discounted at 5.0%. This would add $0.53 after-tax to our tangible book value per share as of June 30, 2019, resulting in a tangible common book value per share of $20.36

Year-Over-Year Review
(All comparisons refer to the first six months of 2018, except as noted)

Fully taxable equivalent net interest income totaled $106.2 million and increased $7.0 million, or 7.0%. Average earning assets increased $182.7 million, or 3.6%, primarily driven by originated loan growth. The fully taxable equivalent net interest margin widened 13 basis points to 4.03%. The yield on earning assets increased 40 basis points, led by a 50 basis point increase in the originated loan portfolio yields due to higher new loan yields and short-term rate increases, and was partially offset by an increase in the cost of funds of 38 basis points from 0.56% to 0.94%.

Originated and acquired loans outstanding totaled $4.3 billion and increased $527.1 million, or 14.1%, led by originated and acquired commercial loan growth of $568.1 million, or 24.8%. New loan originations over the trailing twelve months totaled $1.2 billion, led by commercial loan originations of $869.9 million. The 310-30 loan portfolio declined $22.4 million, or 27.0%, to $60.6 million at June 30, 2019.

Average non-interest bearing demand deposits increased $68.6 million, or 6.5%. Total deposits averaged $4.6 billion, decreasing $6.2 million from the first six months of 2018, as the $71.7 million decrease in average time deposits was mostly replaced by an increase of $65.6 million in average transaction deposits. Spot transaction deposits increased $107.2 million to $3.6 billion at June 30, 2019, improving the mix of transaction deposits to total deposits to 76.9% from 75.6% at June 30, 2018. The mix of non-interest bearing demand deposits to total deposits improved to 24.9% compared to 23.7% at June 30, 2018.

Provision for loan loss expense was $4.8 million, compared to $1.9 million during the first six months of 2018. Provision for loan loss expense included a $2.4 million specific reserve recorded during the second quarter of 2019 for one previously acquired commercial loan placed on non-accrual during the second quarter of 2019. Annualized net charge-offs on originated and acquired loans totaled 0.02%, compared to 0.05% last year. Non-performing originated and acquired loans increased to 0.79% from 0.68% at June 30, 2018. The originated and acquired allowance for loan losses totaled 0.93% of originated and acquired loans compared to 0.86% at June 30, 2018.

Non-interest income totaled $37.7 million during the first six months of 2019, representing an increase of $0.3 million from last year. Mortgage banking income increased $0.5 million, other non-interest income increased $0.4 million and service charges and bank card fees increased a combined $0.1 million. These increases were partially offset by a $0.7 million decrease in OREO-related income during the period.

Non-interest expense totaled $90.8 million during the first six months of 2019, representing a decrease of $11.2 million, primarily driven by $8.0 million of non-recurring acquisition costs during the first six months of 2018 and efficiencies gained from the integration of the Peoples acquisition.

Income tax expense totaled $6.5 million during the first six months of 2019 compared to $4.5 million last year, an increase of $2.0 million. Included in income tax expense was $2.1 million and $1.2 million of tax benefit from stock compensation activity during the first six months of 2019 and 2018, respectively. Adjusting for the stock compensation activity, the effective tax rate for the first six months of 2019 was 19.0%, compared to 17.7% in the prior period.

Conference Call
Management will host a conference call to review the results at 11:00 a.m. Eastern Time on Wednesday, July 24, 2019. Interested parties may listen to this call by dialing (877) 272-6762 / (615) 800-6832 (International) using the Conference ID of 7492217 and asking for the NBHC Second Quarter Earnings conference call. A telephonic replay of the call will be available beginning approximately four hours after the call's completion through August 7, 2019, by dialing (855) 859-2056 (United States) / (404) 537-3406 (International) using the Conference ID of 7492217. The earnings release and an on-line replay of the call will also be available on the Company's website at www.nationalbankholdings.com by visiting the investor relations area.

About Non-GAAP Financial Measures
Certain 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 book value, excluding accumulated other comprehensive loss, net of tax," "tangible common book value per share, excluding accumulated other comprehensive loss, net of tax," "tangible common equity," "tangible common equity to tangible assets," "adjusted efficiency ratio," "adjusted non-interest expense," "adjusted non-interest expense to average assets," "adjusted net income," "adjusted earnings per share - diluted," "adjusted return on average tangible assets," "adjusted return on average tangible common equity," 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 limitations 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.

About National Bank Holdings Corporation
National Bank Holdings Corporation is a bank holding company created to build a leading community bank franchise delivering high quality client service and committed to shareholder results. Through its bank subsidiary, NBH Bank, National Bank Holdings Corporation operates a network of 105 banking centers, serving individual consumers, small, medium and large businesses, and government and non-profit entities. The bank's core geographic footprint consists of Colorado, the greater Kansas City region, New Mexico, Texas and Utah. NBH Bank operates under the following brand names: Community Banks of Colorado in Colorado, Bank Midwest in Kansas and Missouri and Hillcrest Bank in New Mexico, Texas and Utah. It also operates as Community Banks Mortgage, a division of NBH Bank, in Arizona and Colorado. Additional information about National Bank Holdings Corporation can be found at www.nationalbankholdings.com.

For more information visit: cobnks.com, bankmw.com, hillcrestbank.com or nbhbank.com. Or, follow us on any of our social media sites:
Community Banks of Colorado: facebook.com/cobnks, twitter.com/cobnks, instagram.com/cobnks;
Bank Midwest: facebook.com/bankmw, twitter.com/bank_mw, instagram.com/bankmw;
Hillcrest Bank: facebook.com/hillcrestbank, twitter.com/hillcrest_bank;
NBH Bank: twitter.com/nbhbank;
or connect with any of our brands on LinkedIn.

Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contain words such as "anticipate," "believe," "can," "would," "should," "could," "may," "predict," "seek," "potential," "will," "estimate," "target," "plan," "project," "continuing," "ongoing," "expect," "intend" or similar expressions that relate to the Company's strategy, plans or intentions. 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. Such factors include, without limitation, the "Risk Factors" referenced in our most recent Form 10-K filed with the Securities and Exchange Commission (SEC), other risks and uncertainties listed from time to time in our reports and documents filed with the SEC, and the following factors: ability to execute our business strategy; business and economic conditions; effects of a prolonged government shutdown; economic, market, operational, liquidity, credit and interest rate risks associated with the Company's business; effects of any changes in trade, monetary and fiscal policies and laws; changes imposed by regulatory agencies to increase capital standards; effects of inflation, as well as, interest rate, securities market and monetary supply fluctuations; changes in the economy or supply-demand imbalances affecting local real estate values; changes in consumer spending, borrowings and savings habits; the Company's ability to identify potential candidates for, consummate, integrate and realize operating efficiencies from, acquisitions, consolidations and other expansion opportunities; the Company's ability to realize anticipated benefits from enhancements or updates to its core operating systems from time to time without significant change in client service or risk to the Company's control environment; the Company's dependence on information technology and telecommunications systems of third party service providers and the risk of systems failures, interruptions or breaches of security; the Company's ability to achieve organic loan and deposit growth and the composition of such growth; changes in sources and uses of funds; increased competition in the financial services industry; the effect of changes in accounting policies and practices; the share price of the Company's stock; the Company's ability to realize deferred tax assets or the need for a valuation allowance; continued consolidation in the financial services industry; ability to maintain or increase market share and control expenses; costs and effects of changes in laws and regulations and of other legal and regulatory developments; technological changes; the timely development and acceptance of new products and services; the Company's continued ability to attract, hire and maintain qualified personnel; ability to implement and/or improve operational management and other internal risk controls and processes and reporting system and procedures; regulatory limitations on dividends from the Company's bank subsidiary; changes in estimates of future loan reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; widespread natural and other disasters, dislocations, political instability, acts of war or terrorist activities, cyberattacks or international hostilities; impact of reputational risk; and success at managing the risks involved in the foregoing items. The Company can give no assurance that any goal or plan or expectation set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements. The forward-looking statements are made as of the date of this press release, and the Company does not intend, and assumes 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.

 

NATIONAL BANK HOLDINGS CORPORATION

FINANCIAL SUMMARY

Consolidated 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, 


2019


2019


2018


2019


2018

Total interest and dividend income

$

62,193


$

59,420


$

54,911


$

121,613


$

107,702

Total interest expense


9,702



8,254



5,525



17,956



10,669

Net interest income


52,491



51,166



49,386



103,657



97,033

Taxable equivalent adjustment


1,285



1,227



1,099



2,512



2,162

Net interest income FTE(1)


53,776



52,393



50,485



106,169



99,195

Provision for loan losses


3,239



1,534



1,873



4,773



1,914

Net interest income after provision for loan losses FTE(1)


50,537



50,859



48,612



101,396



97,281

Non-interest income:















Service charges


4,541



4,321



4,371



8,862



8,881

Bank card fees


3,766



3,428



3,672



7,194



7,034

Mortgage banking income


10,398



6,937



8,911



17,335



16,882

Other non-interest income


1,896



2,304



2,157



4,200



3,760

OREO-related income


59



61



451



120



841

Total non-interest income


20,660



17,051



19,562



37,711



37,398

Non-interest expense:















Salaries and benefits


30,667



27,890



29,123



58,557



59,795

Occupancy and equipment


6,721



6,882



7,190



13,603



15,145

Professional fees


1,041



814



738



1,855



3,557

Other non-interest expense


7,319



7,757



8,298



15,076



20,622

Problem asset workout


725



1,123



775



1,848



1,556

(Gain) loss on sale of OREO, net


(318)



(368)



(14)



(686)



64

Core deposit intangible asset amortization


296



296



653



592



1,306

Total non-interest expense


46,451



44,394



46,763



90,845



102,045
















Income before income taxes FTE(1)


24,746



23,516



21,411



48,262



32,634

Taxable equivalent adjustment


1,285



1,227



1,099



2,512



2,162

Income before income taxes


23,461



22,289



20,312



45,750



30,472

Income tax expense


3,179



3,367



2,800



6,546



4,495

Net income

$

20,282


$

18,922


$

17,512


$

39,204


$

25,977

Earnings per share - basic

$

0.65


$

0.61


$

0.57


$

1.26


$

0.85

Earnings per share - diluted

$

0.64


$

0.60


$

0.56


$

1.24


$

0.83









(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 the three months ended June 30, 2019, March 31, 2019 and June 30, 2018. See non-GAAP reconciliations below.

 

NATIONAL BANK HOLDINGS CORPORATION

Consolidated Statements of Financial Condition (Unaudited)

(Dollars in thousands, except share and per share data)














June 30, 2019


March 31, 2019


December 31, 2018


June 30, 2018

ASSETS












Cash and cash equivalents

$

91,159


$

105,258


$

109,556


$

137,917

Investment securities available-for-sale


710,206



749,537



791,102



856,751

Investment securities held-to-maturity


206,361



221,727



235,398



266,197

Non-marketable securities


30,726



24,574



27,555



20,070

Loans


4,330,263



4,246,941



4,092,308



3,825,555

Allowance for loan losses


(40,082)



(37,055)



(35,692)



(32,230)

Loans, net


4,290,181



4,209,886



4,056,616



3,793,325

Loans held for sale


105,866



59,324



48,120



113,057

Other real estate owned


7,054



9,394



10,596



35,469

Premises and equipment, net


111,171



109,594



109,986



111,415

Goodwill


115,027



115,027



115,027



115,027

Intangible assets, net


12,267



12,981



13,470



14,693

Other assets


177,984



185,364



159,240



183,335

Total assets

$

5,858,002


$

5,802,666


$

5,676,666


$

5,647,256

LIABILITIES AND SHAREHOLDERS' EQUITY












Liabilities:












Non-interest bearing demand deposits

$

1,167,399


$

1,172,683


$

1,072,029


$

1,099,601

Interest bearing demand deposits


691,527



696,332



688,255



682,998

Savings and money market


1,747,434



1,764,341



1,694,808



1,716,534

Total transaction deposits


3,606,360



3,633,356



3,455,092



3,499,133

Time deposits


1,081,637



1,081,092



1,080,529



1,132,331

Total deposits


4,687,997



4,714,448



4,535,621



4,631,464

Securities sold under agreements to repurchase


60,430



59,543



66,047



73,441

Federal Home Loan Bank advances


272,414



228,421



301,660



188,334

Other liabilities


103,244



85,252



78,332



93,832

Total liabilities


5,124,085



5,087,664



4,981,660



4,987,071

Shareholders' equity:












Common stock


515



515



515



515

Additional paid in capital


1,006,008



1,012,974



1,014,399



1,012,175

Retained earnings


135,210



120,879



106,990



81,182

Treasury stock


(409,322)



(413,226)



(415,623)



(416,281)

Accumulated other comprehensive income (loss), net of tax


1,506



(6,140)



(11,275)



(17,406)

Total shareholders' equity


733,917



715,002



695,006



660,185

Total liabilities and shareholders' equity

$

5,858,002


$

5,802,666


$

5,676,666


$

5,647,256

SHARE DATA












Average basic shares outstanding


31,155,264



30,961,187



30,888,238



30,735,427

Average diluted shares outstanding


31,604,658



31,497,538



31,492,342



31,387,175

Ending shares outstanding


31,139,044



30,958,581



30,769,063



30,726,789

Common book value per share

$

23.57


$

23.10


$

22.59


$

21.49

Tangible common book value per share(1) (non-GAAP)

$

19.83


$

19.31


$

18.77


$

17.61

Tangible common book value per share, excluding accumulated other comprehensive income(1) (non-GAAP)

$

19.78


$

19.51


$

19.13


$

18.18

CAPITAL RATIOS












Average equity to average assets


12.46%



12.39%



12.15%



11.63%

Tangible common equity to tangible assets(1)


10.75%



10.52%



10.39%



9.79%

Leverage ratio


10.60%



10.63%



10.51%



9.92%

Tier 1 risk-based capital ratio


12.87%



12.84%



12.91%



12.62%

Total risk-based capital ratio


13.78%



13.72%



13.79%



13.47%









(1)


Represents a non-GAAP financial measure. See non-GAAP reconciliations below.

 

NATIONAL BANK HOLDINGS CORPORATION

Loan Portfolio

(Dollars in thousands)


Period End Loan Balances by Type









June 30, 2019





June 30, 2019






vs. March 31, 2019




 vs. June 30, 2018


June 30, 2019


March 31, 2019


% Change


June 30, 2018


% Change

Originated:













Commercial:













Commercial and industrial

$

2,079,812


$

1,971,692


5.5%


$

1,611,864


29.0%

Owner-occupied commercial real estate


379,462



347,064


9.3%



286,298


32.5%

Food and agriculture


236,865



228,765


3.5%



188,185


25.9%

Energy


43,242



55,368


(21.9)%



37,221


16.2%

Total commercial


2,739,381



2,602,889


5.2%



2,123,568


29.0%

Commercial real estate non-owner occupied


459,242



472,073


(2.7)%



411,953


11.5%

Residential real estate


660,657



664,852


(0.6)%



625,940


5.5%

Consumer


21,731



21,070


3.1%



23,235


(6.5)%

Total originated


3,881,011



3,760,884


3.2%



3,184,696


21.9%














Acquired:













Commercial:













Commercial and industrial


44,550



48,194


(7.6)%



68,509


(35.0)%

Owner-occupied commercial real estate


75,106



81,659


(8.0)%



96,353


(22.1)%

Food and agriculture


4,080



4,263


(4.3)%



6,611


(38.3)%

Total commercial


123,736



134,116


(7.7)%



171,473


(27.8)%

Commercial real estate non-owner occupied


125,021



137,003


(8.7)%



182,787


(31.6)%

Residential real estate


138,909



150,292


(7.6)%



200,730


(30.8)%

Consumer


994



1,119


(11.2)%



2,915


(65.9)%

Total acquired


388,660



422,530


(8.0)%



557,905


(30.3)%














ASC 310-30 loans


60,592



63,527


(4.6)%



82,954


(27.0)%

Total loans

$

4,330,263


$

4,246,941


2.0%


$

3,825,555


13.2%


Originated and Acquired Loan Balances by Loan Segment





















June 30, 2019





June 30, 2019






vs. March 31, 2019





 vs. June 30, 2018


June 30, 2019


March 31, 2019


% Change


June 30, 2018


% Change

Commercial

$

2,863,117


$

2,737,005


4.6%


$

2,295,041


24.8%

Commercial real estate non-owner occupied


584,263



609,076


(4.1)%



594,740


(1.8)%

Residential real estate


799,566



815,144


(1.9)%



826,670


(3.3)%

Consumer


22,725



22,189


2.4%



26,150


(13.1)%

Total originated and acquired loans

$

4,269,671


$

4,183,414


2.1%


$

3,742,601


14.1%


Originations(1)



Second quarter


First quarter


Fourth quarter


Third quarter


Second quarter


2019


2019


2018


2018


2018

Commercial:















Commercial and industrial

$

163,138


$

153,547


$

213,335


$

123,440


$

232,643

Owner occupied commercial real estate


41,380



26,405



34,727



35,549



19,009

Food and agriculture


18,217



15,213



14,046



23,833



38,220

Energy


(12,098)



6,138



7,640



5,412



(929)

Total commercial


210,637



201,303



269,748



188,234



288,943

Commercial real estate non-owner occupied


36,632



69,125



41,031



42,300



28,316

Residential real estate


40,012



38,627



51,017



40,293



30,259

Consumer


3,264



1,958



2,592



3,797



3,588

Total

$

290,545


$

311,013


$

364,388


$

274,624


$

351,106









(1)


Originations are defined as closed end funded loans and net fundings under revolving lines of credit. Net funding under revolving lines of credit were $48,955, $105,235, $6,263, $34,070 and $151,888 as of the second quarter 2019, first quarter 2019, fourth quarter 2018, third quarter 2018 and second quarter 2018, respectively.

 

NATIONAL BANK HOLDINGS CORPORATION

Summary of Net Interest Margin

(Dollars in thousands)































For the three months ended


For the three months ended


For the three months ended



June 30, 2019


March 31, 2019


June 30, 2018



Average





Average


Average





Average


Average





Average



balance


Interest


rate


balance


Interest


rate


balance


Interest


rate

Interest earning assets:




























Originated loans FTE(1)(2)


$

3,821,981


$

46,728



4.90%


$

3,624,793


$

43,573



4.88%


$

3,079,727


$

34,165



4.45%

Acquired loans



406,232



6,325



6.25%



438,374



6,254



5.79%



596,229



8,687



5.84%

ASC 310-30 loans



61,750



3,294



21.34%



64,920



3,687



22.72%



95,033



4,831



20.33%

Loans held for sale



87,222



934



4.30%



42,868



488



4.62%



83,258



950



4.58%

Investment securities available-for-sale



738,970



4,002



2.17%



787,367



4,361



2.22%



916,133



4,840



2.11%

Investment securities held-to-maturity



215,497



1,533



2.85%



229,401



1,651



2.88%



276,141



1,970



2.85%

Other securities



28,425



458



6.45%



26,885



423



6.29%



16,735



248



5.93%

Interest earning deposits and securities purchased under agreements to resell



27,079



204



3.02%



32,657



210



2.61%



66,019



319



1.94%

Total interest earning assets FTE(2)


$

5,387,156


$

63,478



4.73%


$

5,247,265


$

60,647



4.69%


$

5,129,275


$

56,010



4.38%

Cash and due from banks


$

75,780








$

77,954








$

95,823







Other assets



419,368









421,615









424,288







Allowance for loan losses



(37,743)









(35,814)









(31,421)







Total assets


$

5,844,561








$

5,711,020








$

5,617,965







Interest bearing liabilities:




























Interest bearing demand, savings and money market deposits


$

2,429,686


$

3,559



0.59%


$

2,410,009


$

3,008



0.51%


$

2,437,404


$

1,929



0.32%

Time deposits



1,084,011



4,090



1.51%



1,078,554



3,607



1.36%



1,138,924



2,935



1.03%

Securities sold under agreements to repurchase



57,571



162



1.13%



60,589



153



1.02%



93,625



36



0.15%

Federal Home Loan Bank advances



294,524



1,891



2.58%



248,779



1,486



2.42%



132,297



625



1.89%

Total interest bearing liabilities


$

3,865,792


$

9,702



1.01%


$

3,797,931


$

8,254



0.88%


$

3,802,250


$

5,525



0.58%

Demand deposits


$

1,155,710








$

1,108,150








$

1,069,146







Other liabilities



94,968









97,107









92,939







Total liabilities



5,116,470









5,003,188









4,964,335







Shareholders' equity



728,091









707,832









653,630







Total liabilities and shareholders' equity


$

5,844,561








$

5,711,020








$

5,617,965







Net interest income FTE(2)





$

53,776








$

52,393








$

50,485




Interest rate spread FTE(2)









3.72%









3.81%









3.80%

Net interest earning assets


$

1,521,364








$

1,449,334








$

1,327,025







Net interest margin FTE(2)









4.00%









4.05%









3.95%

Average transaction deposits


$

3,585,396








$

3,518,159








$

3,506,550







Average total deposits


$

4,669,407








$

4,596,713








$

4,645,474







Ratio of average interest earning assets to average interest bearing liabilities



139.35%









138.16%









134.90%

















(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% for the three months ended June 30, 2019, March 31, 2019 and June 30, 2018. The tax equivalent adjustments included above are $1,285, $1,227 and $1,099 for the three months ended June 30, 2019, March 31, 2019 and June 30, 2018, respectively.

 

NATIONAL BANK HOLDINGS CORPORATION

Summary of Net Interest Margin

(Dollars in thousands)


















For the six months ended June 30, 2019


For the six months ended June 30, 2018


Average





Average


Average





Average


balance


Interest


rate


balance


Interest


rate

Interest earning assets:
















Originated loans FTE(1)(2)

$

3,723,932


$

90,301


4.89%


$

3,017,641


$

65,619


4.39%

Acquired loans


422,214



12,579


6.01%



617,771



17,617


5.75%

ASC 310-30 loans


63,326



6,981


22.05%



105,176



10,224


19.44%

Loans held for sale


65,167



1,422


4.40%



68,888



1,516


4.44%

Investment securities available-for-sale


763,034



8,363


2.19%



925,693



9,615


2.08%

Investment securities held-to-maturity


222,411



3,184


2.86%



266,447



3,721


2.79%

Other securities


27,659



881


6.37%



16,405



492


6.00%

Interest earning deposits and securities purchased under agreements to resell


29,853



414


2.80%



116,886



1,060


1.83%

Total interest earning assets FTE(2)

$

5,317,596


$

124,125


4.71%


$

5,134,907


$

109,864


4.31%

Cash and due from banks

$

76,861







$

97,799






Other assets


420,486








415,644






Allowance for loan losses


(36,784)








(31,519)






Total assets

$

5,778,159







$

5,616,831






Interest bearing liabilities:
















Interest bearing demand, savings and money market deposits

$

2,419,902


$

6,567


0.55%


$

2,422,976


$

3,773


0.31%

Time deposits


1,081,297



7,697


1.44%



1,153,034



5,725


1.00%

Securities sold under agreements to repurchase


59,072



315


1.08%



112,875



86


0.15%

Federal Home Loan Bank advances


271,778



3,377


2.51%



124,036



1,085


1.76%

Total interest bearing liabilities

$

3,832,049


$

17,956


0.94%


$

3,812,921


$

10,669


0.56%

Demand deposits

$

1,132,062







$

1,063,416






Other liabilities


96,031








92,510






Total liabilities


5,060,142








4,968,847






Shareholders' equity


718,017








647,984






Total liabilities and shareholders' equity

$

5,778,159







$

5,616,831






Net interest income FTE(2)




$

106,169







$

99,195



Interest rate spread FTE(2)







3.77%








3.75%

Net interest earning assets

$

1,485,547







$

1,321,986






Net interest margin FTE(2)







4.03%








3.90%

Average transaction deposits

$

3,551,964







$

3,486,392






Average total deposits

$

4,633,261







$

4,639,426






Ratio of average interest earning assets to average interest bearing liabilities


138.77%








134.67%
















(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% for the six months ended June 30, 2019 and June 30, 2018. The tax equivalent adjustments included above are $2,512 and $2,162 for the six months ended June 30, 2019 and June 30, 2018, respectively.

 

NATIONAL BANK HOLDINGS CORPORATION

Allowance for Loan Losses and Asset Quality

(Dollars in thousands)




























Allowance for Loan Losses Analysis





























As of and for the three months ended


June 30, 2019


March 31, 2019


June 30, 2018


Originated


ASC




Originated


ASC




Originated


ASC




and acquired


310-30




and acquired


310-30




and acquired


310-30




loans


loans


Total


loans


loans


Total


loans


loans


Total

Beginning allowance for loan losses

$

36,840


$

215


$

37,055


$

35,461


$

231


$

35,692


$

30,574


$

112


$

30,686

Charge-offs


(294)





(294)



(268)





(268)



(335)



(61)



(396)

Recoveries


82





82



97





97



67





67

Provision (recoupment)


3,263



(24)



3,239



1,550



(16)



1,534



1,723



150



1,873

Ending ALL

$

39,891


$

191


$

40,082


$

36,840


$

215


$

37,055


$

32,029


$

201


$

32,230

Ratio of annualized net charge-offs to average total loans during the period, respectively


0.02%



0.00%



0.02%



0.02%



0.00%



0.02%



0.03%



0.26%



0.03%

Ratio of ALL to total loans outstanding at period end, respectively


0.93%



0.32%



0.93%



0.88%



0.34%



0.87%



0.86%



0.24%



0.84%

Ratio of ALL to total non-performing loans at period end, respectively(1)


118.36%



0.00%



118.93%



140.02%



0.00%



140.84%



124.94%



0.00%



125.73%

Total loans

$

4,269,671


$

60,592


$

4,330,263


$

4,183,414


$

63,527


$

4,246,941


$

3,742,601


$

82,954


$

3,825,555

Average total loans during the period

$

4,228,213


$

61,750


$

4,289,963


$

4,063,167


$

64,920


$

4,128,087


$

3,675,956


$

95,033


$

3,770,989

Total non-performing loans(1)

$

33,703


$


$

33,703


$

26,310


$


$

26,310


$

25,635


$


$

25,635














(1)


Loans accounted for under ASC 310-30 may be considered performing, regardless of past due status, if the timing and expected cash flows on these loans can be reasonably estimated and if collection of the new carrying value is expected.







Originated and Acquired Loans



















June 30, 2019


March 31, 2019


June 30, 2018

Loans 30-89 days past due and still accruing interest

$

11,067


$

6,245


$

9,587

Loans 90 days past due and still accruing interest


34



1,359



1,104

Non-accrual loans


33,703



26,310



25,635

Total past due and non-accrual loans

$

44,804


$

33,914


$

36,326

Total 90 days past due and still accruing interest and non-accrual loans to total originated and acquired loans


0.79%



0.66%



0.71%

Total non-accrual loans to total originated and acquired loans


0.79%



0.63%



0.68%

 

NATIONAL BANK HOLDINGS CORPORATION

Asset Quality

(Dollars in thousands)










Asset Quality Data



















June 30, 2019


March 31, 2019


June 30, 2018

Non-performing loans

$

33,703


$

26,310


$

25,635

OREO:









Originated and acquired


2,618



4,724



5,905

Transferred from 310-30 loans


4,436



4,670



29,564

Total OREO


7,054



9,394



35,469

Total non-performing assets

$

40,757


$

35,704


$

61,104

Accruing restructured loans

$

2,633


$

2,206


$

6,939

Total non-performing loans to total loans


0.78%



0.62%



0.67%

Total non-performing assets to total loans and OREO


0.94%



0.84%



1.58%

Total non-performing assets (excluding OREO transferred from 310-30 loans) to total loans and OREO (excluding OREO transferred from 310-30)


0.84%



0.73%



0.82%

 

NATIONAL BANK HOLDINGS CORPORATION

Key Ratios












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, 


2019


2019


2018


2019


2018

Key Ratios(1)










Return on average assets

1.39%


1.34%


1.25%


1.37%


0.93%

Return on average tangible assets(2)

1.44%


1.39%


1.31%


1.41%


0.99%

Return on average tangible assets, adjusted(2)

1.44%


1.39%


1.33%


1.41%


1.22%

Return on average equity

11.17%


10.84%


10.75%


11.01%


8.08%

Return on average tangible common equity(2)

13.45%


13.15%


13.52%


13.30%


10.29%

Return on average tangible common equity, adjusted(2)

13.45%


13.15%


13.72%


13.30%


12.71%

Loan to deposit ratio (end of period)

92.37%


90.08%


82.60%


92.37%


82.60%

Non-interest bearing deposits to total deposits (end of period)

24.90%


24.87%


23.74%


24.90%


23.74%

Net interest margin(4)

3.91%


3.95%


3.86%


3.93%


3.81%

Net interest margin FTE(2)(4)

4.00%


4.05%


3.95%


4.03%


3.90%

Interest rate spread FTE(2)(5)

3.72%


3.81%


3.80%


3.77%


3.75%

Yield on earning assets(3)

4.63%


4.59%


4.29%


4.61%


4.23%

Yield on earning assets FTE(2)(3)

4.73%


4.69%


4.38%


4.71%


4.31%

Cost of interest bearing liabilities(3)

1.01%


0.88%


0.58%


0.94%


0.56%

Cost of deposits

0.66%


0.58%


0.42%


0.62%


0.41%

Non-interest income to total revenue FTE(2)

27.76%


24.55%


27.93%


26.21%


27.38%

Non-interest expense to average assets

3.19%


3.15%


3.34%


3.17%


3.66%

Non-interest expense to average assets, adjusted(2)

3.19%


3.15%


3.31%


3.17%


3.38%

Efficiency ratio

63.10%


64.64%


66.88%


63.84%


74.94%

Efficiency ratio FTE(2)

62.01%


63.50%


65.83%


62.73%


73.75%

Efficiency ratio FTE, adjusted for acquisition-related costs(2)

62.01%


63.50%


65.31%


62.73%


67.93%











Originated and Acquired Loans Asset Quality Data(6)(7)(8)










Non-performing loans to total originated and acquired loans

0.79%


0.63%


0.68%


0.79%


0.68%

Allowance for loan losses to total originated and acquired loans

0.93%


0.88%


0.86%


0.93%


0.86%

Allowance for loan losses to non-performing loans

118.36%


140.02%


124.94%


118.36%


124.94%

Net charge-offs to average loans(1)

0.02%


0.02%


0.03%


0.02%


0.05%











Total Loans Asset Quality Data(6)(7)(8)










Non-performing loans to total loans

0.78%


0.62%


0.67%


0.78%


0.67%

Non-performing assets to total loans and OREO

0.94%


0.84%


1.58%


0.94%


1.58%

Allowance for loan losses to total loans

0.93%


0.87%


0.84%


0.93%


0.84%

Allowance for loan losses to non-performing loans

118.93%


140.84%


125.73%


118.93%


125.73%

Net charge-offs to average loans(1)

0.02%


0.02%


0.03%


0.02%


0.05%











(1)


Quarter-to-date and year-to-date ratios are annualized.

(2)


Ratio represents non-GAAP financial measure. See non-GAAP reconciliations below.

(3)


Interest earning assets include assets that earn interest/accretion or dividends. Any market value adjustments on investment securities are excluded from interest earning assets. Interest bearing liabilities include liabilities that must be paid interest.

(4)


Net interest margin represents net interest income, including accretion income on interest earning assets, as a percentage of average interest earning assets.

(5)


Interest rate spread represents the difference between the weighted average yield on interest earning assets and the weighted average cost of interest bearing liabilities.

(6)


Non-performing loans consist of non-accruing loans and restructured loans on non-accrual, but exclude any loans accounted for under ASC 310-30 in which the pool is still performing. These ratios may, therefore, not be comparable to similar ratios of our peers.

(7)


Non-performing assets include non-performing loans and other real estate owned.

(8)


Total loans are net of unearned discounts and fees.

 

NATIONAL BANK HOLDINGS CORPORATION

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

(Dollars in thousands, except share and per share data)













Tangible Common Book Value Ratios














June 30, 2019


March 31, 2019


December 31, 2018


June 30, 2018

Total shareholders' equity

$

733,917


$

715,002


$

695,006


$

660,185

Less: goodwill and core deposit intangible assets, net


(124,350)



(124,645)



(124,941)



(125,805)

Add: deferred tax liability related to goodwill


7,784



7,555



7,327



6,869

Tangible common equity (non-GAAP)

$

617,351


$

597,912


$

577,392


$

541,249













Total assets

$

5,858,002


$

5,802,666


$

5,676,666


$

5,647,256

Less: goodwill and core deposit intangible assets, net


(124,350)



(124,645)



(124,941)



(125,805)

Add: deferred tax liability related to goodwill


7,784



7,555



7,327



6,869

Tangible assets (non-GAAP)

$

5,741,436


$

5,685,576


$

5,559,052


$

5,528,320













Tangible common equity to tangible assets calculations:












Total shareholders' equity to total assets


12.53%



12.32%



12.24%



11.69%

Less: impact of goodwill and core deposit intangible assets, net


(1.78)%



(1.80)%



(1.85)%



(1.90)%

Tangible common equity to tangible assets (non-GAAP)


10.75%



10.52%



10.39%



9.79%













Tangible common book value per share calculations:












Tangible common equity (non-GAAP)

$

617,351


$

597,912


$

577,392


$

541,249

Divided by: ending shares outstanding


31,139,044



30,958,581



30,769,063



30,726,789

Tangible common book value per share (non-GAAP)

$

19.83


$

19.31


$

18.77


$

17.61













Tangible common book value per share, excluding accumulated other comprehensive (income) loss calculations:












Tangible common equity (non-GAAP)

$

617,351


$

597,912


$

577,392


$

541,249

Accumulated other comprehensive (income) loss, net of tax


(1,506)



6,140



11,275



17,406

Tangible common book value, excluding accumulated other comprehensive (income) loss, net of tax (non-GAAP)


615,845



604,052



588,667



558,655

Divided by: ending shares outstanding


31,139,044



30,958,581



30,769,063



30,726,789

Tangible common book value per share, excluding accumulated other comprehensive (income) loss, net of tax (non-GAAP)

$

19.78


$

19.51


$

19.13


$

18.18


 

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, 2019


March 31, 2019


June 30, 2018


June 30, 2019


June 30, 2018

Net income

$

20,282


$

18,922


$

17,512


$

39,204


$

25,977

Add: impact of core deposit intangible amortization expense, after tax


225



225



496



450



993

Net income adjusted for impact of core deposit intangible amortization expense, after tax

$

20,507


$

19,147


$

18,008


$

39,654


$

26,970
















Average assets

$

5,844,561


$

5,711,020


$

5,617,965


$

5,778,159


$

5,616,831

Less: average goodwill and core deposit intangible asset, net of deferred tax liability related to goodwill


(116,712)



(117,235)



(119,257)



(116,858)



(119,600)

Average tangible assets (non-GAAP)

$

5,727,849


$

5,593,785


$

5,498,708


$

5,661,301


$

5,497,231
















Average shareholders' equity

$

728,091


$

707,832


$

653,630


$

718,017


$

647,984

Less: average goodwill and core deposit intangible assets, net of deferred tax liability related to goodwill


(116,712)



(117,235)



(119,257)



(116,858)



(119,600)

Average tangible common equity (non-GAAP)

$

611,379


$

590,597


$

534,373


$

601,159


$

528,384
















Return on average assets


1.39%



1.34%



1.25%



1.37%



0.93%

Return on average tangible assets (non-GAAP)


1.44%



1.39%



1.31%



1.41%



0.99%

Return on average equity


11.17%



10.84%



10.75%



11.01%



8.08%

Return on average tangible common equity (non-GAAP)


13.45%



13.15%



13.52%



13.30%



10.29%
















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, 2019


March 31, 2019


June 30, 2018


June 30, 2019


June 30, 2018

Interest income

$

62,193


$

59,420


$

54,911


$

121,613


$

107,702

Add: impact of taxable equivalent adjustment


1,285



1,227



1,099



2,512



2,162

Interest income FTE (non-GAAP)

$

63,478


$

60,647


$

56,010


$

124,125


$

109,864
















Net interest income

$

52,491


$

51,166


$

49,386


$

103,657


$

97,033

Add: impact of taxable equivalent adjustment


1,285



1,227



1,099



2,512



2,162

Net interest income FTE (non-GAAP)

$

53,776


$

52,393


$

50,485


$

106,169


$

99,195
















Average earning assets

$

5,387,156


$

5,247,265


$

5,129,275


$

5,317,596


$

5,134,907

Yield on earning assets


4.63%



4.59%



4.29%



4.61%



4.23%

Yield on earning assets FTE (non-GAAP)


4.73%



4.69%



4.38%



4.71%



4.31%

Net interest margin


3.91%



3.95%



3.86%



3.93%



3.81%

Net interest margin FTE (non-GAAP)


4.00%



4.05%



3.95%



4.03%



3.90%
















Efficiency Ratio































As of and for the three months ended


As of and for the year ended


June 30, 2019


March 31, 2019


June 30, 2018


June 30, 2019


June 30, 2018

Net interest income

$

52,491


$

51,166


$

49,386


$

103,657


$

97,033

Add: impact of taxable equivalent adjustment


1,285



1,227



1,099



2,512



2,162

Net interest income, FTE (non-GAAP)

$

53,776


$

52,393


$

50,485


$

106,169


$

99,195
















Non-interest income

$

20,660


$

17,051


$

19,562


$

37,711


$

37,398
















Non-interest expense

$

46,451


$

44,394


$

46,763


$

90,845


$

102,045

Less: core deposit intangible asset amortization


(296)



(296)



(653)



(592)



(1,306)

Non-interest expense, adjusted for core deposit intangible asset amortization

$

46,155


$

44,098


$

46,110


$

90,253


$

100,739
















Non-interest expense, adjusted for core deposit intangible asset amortization

$

46,155


$

44,098


$

46,110


$

90,253


$

100,739

Non-recurring Peoples acquisition-related expenses






(359)





(7,957)

Adjusted non-interest expense (non-GAAP)

$

46,155


$

44,098


$

45,751


$

90,253


$

92,782
















Efficiency ratio


63.10%



64.64%



66.88%



63.84%



74.94%

Efficiency ratio FTE (non-GAAP)


62.01%



63.50%



65.83%



62.73%



73.75%

Adjusted efficiency ratio FTE (non-GAAP)


62.01%



63.50%



65.31%



62.73%



67.93%
















Adjusted Financial Results































As of and for the three months ended


As of and for the six months ended


June 30, 2019


March 31, 2019


June 30, 2018


June 30, 2019


June 30, 2018

Adjustments to net income:















Net income

$

20,282


$

18,922


$

17,512


$

39,204


$

25,977

Adjustments(1)






275





6,321

Adjusted net income (non-GAAP)

$

20,282


$

18,922


$

17,787


$

39,204


$

32,298
















Adjustments to income per share:















Earnings per share - diluted

$

0.64


$

0.60


$

0.56


$

1.24


$

0.83

Adjustments(1)






0.01





0.20

Adjusted earnings per share - diluted (non-GAAP)

$

0.64


$

0.60


$

0.57


$

1.24


$

1.03
















Adjustments to return on average tangible assets:















Adjusted net income (non-GAAP)

$

20,282


$

18,922


$

17,787


$

39,204


$

32,298

Add: impact of core deposit intangible amortization expense, after tax


225



225



496



450



993

Net income adjusted for impact of core deposit intangible amortization expense, after tax


20,507



19,147



18,283



39,654



33,291

Average tangible assets (non-GAAP)


5,727,849



5,593,785



5,498,708



5,661,301



5,497,231

Adjusted return on average tangible assets (non-GAAP)


1.44%



1.39%



1.33%



1.41%



1.22%
















Adjustments to return on average tangible common equity:















Net income adjusted for impact of core deposit intangible amortization expense, after tax

$

20,507


$

19,147


$

18,283


$

39,654


$

33,291

Average tangible common equity (non-GAAP)


611,379



590,597



534,373



601,159



528,384

Adjusted return on average tangible common equity (non-GAAP)


13.45%



13.15%



13.72%



13.30%



12.71%
















Adjustments to non-interest expense:















Non-interest expense

$

46,451


$

44,394


$

46,763


$

90,845


$

102,045

Adjustments(1)






359





7,957

Adjusted non-interest expense (non-GAAP)


46,451



44,394



46,404



90,845



94,088

Non-interest expense to average assets, adjusted (non-GAAP)


3.19%



3.15%



3.31%



3.17%



3.38%
















(1) Adjustments:















Non-interest expense adjustments:















Non-recurring Peoples acquisition-related expenses

$


$


$

359


$


$

7,957

Total pre-tax adjustments (non-GAAP)






359





7,957

Collective tax expense impact






(84)





(1,636)

Adjustments (non-GAAP)

$


$


$

275


$


$

6,321

 

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SOURCE National Bank Holdings Corporation