GREENWOOD VILLAGE, Colo., Jan. 26, 2017 /PRNewswire/ -- National Bank Holdings Corporation (NYSE: NBHC) reported net income of $10.0 million, or $0.36 per diluted share, for the fourth quarter of 2016, compared to net income of $8.3 million, or $0.30 per diluted share, for the third quarter of 2016 and net income of $3.3 million, or $0.11 per diluted share, for the fourth quarter of 2015. The return on average tangible assets was 0.95% for the fourth quarter of 2016 compared to 0.80% for the third quarter of 2016, and 0.36% for the fourth quarter of 2015. The return on average tangible equity was 8.87% for the fourth quarter of 2016 compared to 7.07% for the third quarter of 2016, and 2.97% for the fourth quarter of 2015. For the full year 2016, net income totaled $23.1 million, or $0.79 per diluted share, compared to net income of $4.9 million, or $0.14 per diluted share during 2015. The return on average tangible assets was 0.57% for year ended 2016 compared to 0.17% for the year ended 2015. The return on average tangible equity was 5.04% for the year ended 2016 compared to 1.29% for the year ended 2015.
In announcing these results, Chief Executive Officer, Tim Laney shared, "We closed out 2016 with record loan production of over $1 billion, realizing 11% year-over-year loan growth and 18% growth in our originated loan portfolio. We're pleased to end the year with credit quality on solid footing with just 10 basis points of non-energy net charge-offs for the year. With respect to our energy exposure, I'm pleased to report that we had no new adversely rated energy loans during 2016. Further, we have only three problem energy loans remaining from those identified in 2015. We continue to grow our low-cost deposit base and have increased our average transaction deposits by $143 million, or 6%, while creating efficiencies in our deposit gathering strategies as evidenced by a reduction in our banking centers by 12% in the last eighteen months. Those banking center actions, in conjunction with other expense management initiatives led to a $22 million, or 14% decrease in non-interest expenses compared to the prior year."
Mr. Laney added, "We successfully repurchased 4.5 million shares throughout 2016, or 15% of our outstanding shares. Since early 2013, we have repurchased 51% of our shares outstanding, at a weighted average price of $20.03. Our capital position remains strong with excess capital of $60 million above a 9% leverage ratio as of year-end. Our excess capital is a source of strength and gives us flexibility to react to future opportunities to leverage capital in situations that we believe will create attractive returns for our shareholders."
Fourth Quarter 2016 Highlights
(All comparisons refer to the third quarter of 2016, except as noted)
-- At December 31, 2016, loans totaled $2.9 billion and increased $38.4 million, or 5.4% annualized, driven by $275.0 million in fourth quarter originations, partially offset by higher than normal paydowns. Total non 310-30 loans at December 31, 2016 increased $330.2 million, or 13.8%, since December 31, 2015. -- Fully taxable equivalent net interest income totaled $36.8 million and decreased $1.3 million, due to higher levels of accelerated accretion income on 310-30 loans in the prior quarter. -- Provision for loan losses totaled $1.3 million and decreased $4.0 million due to low net charge-offs and $3.9 million of energy sector specific reserves recorded in the prior quarter. -- Annualized net charge-offs in the non 310-30 portfolio were 0.02% of average non 310-30 loans during the fourth quarter and totaled 0.85% for the full year. Excluding energy sector net charge-offs, the 2016 net charge-offs on non 310-30 loans totaled 0.10%, compared to 0.12% in the prior year. -- Added a net $3.4 million to accretable yield for the acquired loans accounted for under ASC 310-30. -- Total deposits averaged $3.8 billion and increased $51.1 million, or 5.4% annualized, driven by transaction deposit growth of $56.0 million, or 8.5% annualized. -- Non-interest income totaled $10.0 million, decreasing $1.6 million due to $1.6 million of OREO related income recorded in the prior quarter. Collectively, service charges, bank card fees and gain on sale of mortgages were consistent with the prior quarter. -- Non-interest expense totaled $34.4 million, increasing $1.1 million. Excluding gain on sale of OREO, non-interest expense decreased $0.8 million, or 8.9% annualized, driven by lower salaries and benefits and occupancy expenses. Year-to-date non-interest expense of $136.0 million represents a decrease of 13.9% from 2015. -- Income tax expense totaled $0.1 million, an effective tax rate of 0.8%, and was benefited by $2.1 million due to the adoption of Accounting Standards Update 2016-09, Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). -- At December 31, 2016, common book value per share was $20.32, while tangible common book value per share was $18.15 and $19.08 after consideration of the excess accretable yield value of $0.93 per share.
Fourth Quarter 2016 Results
(All comparisons refer to the third quarter of 2016, except as noted)
Net Interest Income
Fully taxable equivalent net interest income totaled $36.8 million and decreased $1.3 million, due to accelerated accretion income on 310-30 loans of $1.8 million in the prior quarter and lower income of $0.5 million from investment portfolio paydowns. These decreases were partially offset by a $1.4 million increase in non 310-30 interest income driven by new loan originations. The lower levels of 310-30 accretion income resulted in a 0.13% narrowing of the net interest margin from 3.59% to 3.46%. Average earning assets totaled $4.2 billion and were consistent with the prior quarter.
Loans
Total loans ended the quarter at $2.9 billion, increasing $38.4 million, or 5.4% annualized, driven by new loan originations of $275.0 million, partially offset by higher than normal paydowns. Originated loans outstanding totaled $2.6 billion and increased $66.2 million, or 10.5% annualized, led by total commercial loans increasing 11.8% annualized. Loan originations totaled a record of over $1.0 billion during the past twelve months, resulting in originated loan outstandings growth of 17.8% over December 31, 2015.
Asset Quality and Provision for Loan Losses
Non 310-30 loans totaled $2.7 billion and represented 94.9% of total loans at December 31, 2016. These loans are comprised of originated loans and acquired loans not accounted for under 310-30. Net charge-offs within the non 310-30 portfolio totaled $0.1 million, or only 0.02% annualized, decreasing from an annualized 2.64% last quarter due to energy sector charge-offs. Non-performing non 310-30 loans (comprised of non-accrual loans and non-accrual TDRs) were 1.13% of total non 310-30 loans, compared to 0.84% at September 30, 2016 and 1.08% at December 31, 2015.
A provision for loan losses on the non 310-30 loans of $1.3 million was recorded during the quarter, decreasing $4.0 million from the prior quarter primarily due to $3.9 million of energy sector specific reserves recorded in the prior quarter as well as fourth quarter net charge-offs of just 0.02% annualized. The non 310-30 allowance for loan losses was 1.07% of total non 310-30 loans, increasing from 1.04% in the prior quarter.
Energy sector loan balances totaled $90.3 million, increasing $3.6 million due to advances in the quarter, but decreasing $56.6 million compared to the prior year, or 38.5%. Three energy sector loans with balances of $12.6 million were on non-accrual at December 31, 2016, representing the remainder of problem loans identified in 2015. There were no new adversely rated energy loans during 2016 and as of December 31, 2016, 86.0% of the energy loan portfolio is pass rated. The total allowance for loan losses on the energy sector portfolio was 3.9% compared to 4.2% at prior quarter end.
Acquired problem loans accounted for under 310-30 totaled $145.9 million at December 31, 2016 and decreased $11.8 million during the fourth quarter, an annualized decrease of 29.8%, reflecting continued successful workout efforts. The quarterly fair value re-measurement on the 310-30 loans resulted in a favorable net transfer of $3.4 million from non-accretable difference to accretable yield, which will be recognized over the lives of the 310-30 pools. This increased the life-to-date economic benefit of the accretable yield transfers net of impairments on 310-30 loans to $213.2 million.
Deposits
Total deposits averaged $3.8 billion and increased $51.1 million, or 5.4% annualized. Transaction deposits (defined as total deposits less time deposits) averaged $2.7 billion and increased $56.0 million, or 8.5% annualized, driven by demand deposit growth of $10.4 million, or 5.0% annualized, coupled with an increase in other low-cost deposits of $45.6 million, or 10.1% annualized. Time deposits averaged $1.2 billion, decreasing $4.9 million from the prior quarter. Repurchase agreements averaged $99.5 million, decreasing $17.6 million from the prior quarter due to normal client activity. The average cost of total deposits was 0.38%, increasing from 0.36% primarily due to slightly higher cost of time deposits. The balance sheet continues to be strongly funded by client deposits and client repurchase agreements, and at December 31, 2016, these client fundings comprised 98.1% of total liabilities.
Non-Interest Income
Non-interest income totaled $10.0 million in the fourth quarter of 2016, decreasing $1.6 million due to $1.6 million of OREO related income in the prior quarter. Collectively, service charges, bank card fees and gain on sale of mortgages were consistent with the prior quarter. Other non-interest income is consistent with the prior quarter as a net increase of $1.0 million from swap related fees was partially offset by a $0.8 million gain on previously charged-off acquired loans in the prior quarter.
Non-Interest Expense
Non-interest expense totaled $34.4 million and increased $1.1 million due to a $1.5 million change in gain on sale of OREO and problem asset workout expenses quarter-to-quarter. Excluding gain on sale of OREO and problem asset workout expense, non-interest expense decreased $0.5 million, or 5.7% annualized, driven by $0.6 million of lower salaries and benefits from lower headcount and lower accruals and $0.2 million of lower occupancy expenses, partially offset by a net increase in other expense categories of $0.3 million.
Income tax expense totaled $0.1 million, an effective tax rate of 0.8%, on pre-tax earnings of $10.1 million. Included in the tax expense is a benefit of $2.1 million related to the early adoption of ASU 2016-09. Prior to this adoption, the realized tax benefit from stock compensation awards vested in the fourth quarter would have been recorded directly to capital. Without this $2.1 million, tax expense would have been $2.2 million, an effective tax rate of 22.4%, or a fully taxable equivalent rate of 29.6%. 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. Shareholders' equity totaled $536.2 million at December 31, 2016 and decreased $13.6 million from prior quarter end. The decrease in equity is due to a $10.3 million decrease in accumulated other comprehensive income, which was driven by the fair market value fluctuations of the available-for-sale investment securities portfolio, as well as the impact of share repurchases and stock compensation vesting, offset by net income.
Book value per share was $20.32 at December 31, 2016 and decreased $0.60 from the prior quarter end. Tangible common book value per share was $18.15 at December 31, 2016, compared to $18.67 at prior quarter end, as the increase from net income was more than offset by lower accumulated other comprehensive income, stock compensation vesting and share buybacks. The leverage ratio at December 31, 2016 for the consolidated company and the Bank was 10.39% and 8.63%, respectively.
Share buybacks during the fourth quarter totaled 0.3 million shares, or $6.3 million, at a weighted average price of $23.26. Year-to-date share buybacks through December 31, 2016 totaled 4.5 million shares, or $93.5 million, at a weighted average price of $20.78. Since early 2013, we have repurchased 50.9% of our shares outstanding, at a weighted average price of $20.03.
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 December 31, 2016 accretable yield balance on the 310-30 loans of $60.5 million would add $1.40 after-tax to the tangible book value per share. A more conservative methodology that management uses values the excess yield above a 4.0% yield and then considers the timing of the excess accreted interest income recognition discounted at 5%. This would add $0.93 after-tax to our tangible book value per share as of December 31, 2016, resulting in a tangible common book value per share of $19.08.
Year-Over-Year Review
(All comparisons refer to the full year of 2015)
Net income for 2016 was $23.1 million, or $0.79 per diluted share, compared to net income of $4.9 million, or $0.14 per diluted share for 2015. Fully taxable equivalent net interest income totaled $149.7 million representing a decrease of $9.9 million. Lower levels of higher-yielding 310-30 loans and investment portfolio paydowns decreased interest income by $22.9 million and were partially offset by a $13.5 million increase in non 310-30 interest income from new loan originations. The continued resolution of the higher-yielding acquired loan portfolio and lower rates on the originated portfolio led to a 0.11% narrowing of the fully taxable equivalent net interest margin to 3.49% from 3.60%. Average earning assets totaled $4.3 billion representing a decrease of $0.2 billion from the prior year as decreases in the higher-yielding 310-30 loan portfolio, investment portfolio paydowns and lower cash balances were mostly offset by increases in the originated loan portfolio.
Loan balances at December 31, 2016 totaled $2.9 billion representing an increase of $273.2 million, or 10.6%, over December 31, 2015, due to a record of over $1.0 billion in 2016 loan originations. The strong loan originations were the result of continued market penetration and success of our relationship banking model. The acquired 310-30 loan portfolio declined $57.0 million, or 28.1%, as a result of the continued successful workout efforts that have been made on exiting acquired problem loans.
Total deposits averaged $3.9 billion during 2016, increasing $39.1 million, driven by a $142.7 million, or 5.6%, increase in average transaction deposits (defined as total deposits less time deposits), which totaled $2.7 billion. The increase in average transaction deposits was driven by higher average demand deposits of $36.5 million, or 4.7%, coupled with an increase in other low-cost transaction deposits of $106.2 million, or 6.0%. Time deposits averaged $1.2 billion, decreasing $103.6 million, or 8.1%. Repurchase agreements averaged $109.2 million, decreasing $88.5 million due to temporary client funds from one client in the prior year. The mix of transaction deposits to total deposits improved to 69.7% at December 31, 2016 from 68.9% in the prior year. Additionally, the average cost of deposits totaled 0.36%, consistent with the prior year.
Provision for loan loss expense was $23.7 million during 2016, compared to $12.4 million, an increase of $11.3 million primarily driven by 2016 energy sector provision of $18.9 million. Lower non-energy net charge-offs and lower provision attributable to net loan growth partially offset the increase in the energy sector provision in the year-over-year comparison. The non 310-30 allowance for loan losses ended the year at 1.07% of total non 310-30 loans compared to 1.09% at prior year end. Net charge-offs on non 310-30 loans totaled 0.85%, or excluding energy sector net charge-offs totaled 0.10% compared to net charge-offs of 0.12% in 2015.
Non-interest income totaled $40.0 million during 2016, compared to $21.4 million, increasing $18.6 million. Excluding the net $14.5 million of negative FDIC-related income and bargain purchase gain in the prior year, non-interest income increased $4.1 million, or 11.3%. The increase was driven by growth in bank card fees of $0.5 million on the strength of higher interchange activity, while gain on sale of mortgages increased $0.9 million on a higher level of originations. These increases were partially offset by $0.9 million lower service charges due to lower instances of overdrafts and lower OREO-related income of $0.1 million. Other non-interest income increased $3.7 million primarily from a $1.8 million gain on sale of a building, net swap related income increase of $0.7 million and a $0.6 million increase in gain on recoveries of acquired loans.
Non-interest expense totaled $136.0 million during 2016, representing a decrease of $22.0 million, or 13.9%. The decrease was partially due to lower salaries and benefits of $3.3 million, lower occupancy and equipment of $1.6 million and lower professional fees of $1.0 million. Other non-interest expenses were also lower $9.8 million, primarily due to lower telecommunications and data processing expense benefiting from the core system conversion and lower marketing expense. Problem asset workout expenses and gain on sale of OREO improved a combined $4.9 million. Additionally, the prior period included banking center consolidation related expenses of $1.4 million and warrant liability expense of $0.1 million.
Conference Call
Management will host a conference call to review the results at 11:00 a.m. Eastern Time on Friday, January 27, 2017. Interested parties may listen to this call by dialing (877) 272-6762 (United States) / (615) 800-6832 (International) using the Conference ID of 92242698 and asking for the National Bank Holdings Corporation Fourth Quarter Earnings conference call. A telephonic replay of the call will be available beginning approximately two hours after the call's completion through February 10, 2017, by dialing (855) 859-2056 (United States) / (404) 537-3406 (International) using the Conference ID of 92242698. The earnings release 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," "return on average tangible assets before provision for loan losses and taxes," "return on average tangible common equity," "tangible common book value," "tangible common book value per share," "tangible common equity," "tangible common equity to tangible assets," 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 customer service and committed to shareholder results. National Bank Holdings Corporation operates a network of 91 banking centers located in Colorado, the greater Kansas City region and Texas. Through the Company's subsidiary, NBH Bank, it operates under the following brand names: Bank Midwest in Kansas and Missouri, Community Banks of Colorado in Colorado and Hillcrest Bank in Texas. Additional information about National Bank Holdings Corporation can be found at www.nationalbankholdings.com.
For more information visit: bankmw.com, cobnks.com, hillcrestbank.com or nbhbank.com. Or, follow us on any of our social media sites:
Bank Midwest: facebook.com/bankmw, twitter.com/bank_mw, instagram.com/bankmw;
Community Banks of Colorado: facebook.com/cobnks, twitter.com/cobnks, instagram.com/cobnks;
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; 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 or consolidations; 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 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 years ended -------------------------- ------------------- December 31, September 30, December 31, December 31, December 31, 2016 2016 2015 2016 2015 ---- ---- ---- ---- ---- Total interest and dividend income $39,658 $40,764 $43,492 $160,448 $171,407 Total interest expense 3,873 3,700 3,563 14,808 14,462 ----- ----- ----- ------ ------ Net interest income 35,785 37,064 39,929 145,640 156,945 Taxable equivalent adjustment 1,028 1,041 928 4,081 2,695 ----- ----- --- ----- ----- Net interest income FTE(1) 36,813 38,105 40,857 149,721 159,640 Provision for loan losses 1,282 5,293 5,423 23,651 12,444 ----- ----- ----- ------ ------ Net interest income after provision for loan losses FTE(1) 35,531 32,812 35,434 126,070 147,196 ------ ------ ------ ------- ------- Non-interest income: Service charges 3,513 3,662 3,821 13,900 14,798 Bank card fees 2,899 2,828 2,841 11,429 10,898 Gain on sale of mortgages, net 629 600 389 2,881 1,963 Other non-interest income 2,891 2,851 1,987 9,569 5,915 OREO related write-ups and other income 58 1,667 1,508 2,248 2,379 Bargain purchase gain - - - - 1,048 FDIC loss-sharing related - - 4,873 - (15,553) --- --- ----- --- ------- Total non-interest income 9,990 11,608 15,419 40,027 21,448 Non-interest expense: Salaries and benefits 19,450 20,091 21,331 79,765 83,018 Occupancy and equipment 5,464 5,666 6,234 22,904 24,490 Professional fees 1,153 909 1,489 3,496 4,495 Other non-interest expense 6,370 6,239 9,572 24,764 34,562 Problem asset workout 879 1,172 1,882 3,983 7,317 Gain on sale of OREO, net (263) (2,077) (434) (4,383) (2,776) Intangible asset amortization 1,370 1,370 1,370 5,480 5,401 Loss from change in fair value of warrant liability - - 464 - 106 Banking center consolidation related expenses - - 322 - 1,411 --- --- --- --- ----- Total non-interest expense 34,423 33,370 42,230 136,009 158,024 ------ ------ ------ ------- ------- Income before income taxes FTE(1) 11,098 11,050 8,623 30,088 10,620 Taxable equivalent adjustment 1,028 1,041 928 4,081 2,695 ----- ----- --- ----- ----- Income before income taxes 10,070 10,009 7,695 26,007 7,925 Income tax expense 81 1,695 4,355 2,947 3,044 --- ----- ----- ----- ----- Net income $9,989 $8,314 $3,340 $23,060 $4,881 ====== ====== ====== ======= ====== Income per share - basic $0.38 $0.30 $0.11 $0.81 $0.14 Income per share - diluted $0.36 $0.30 $0.11 $0.79 $0.14
(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 35% for each period presented. See non-GAAP reconciliation below.
NATIONAL BANK HOLDINGS CORPORATION Consolidated Statements of Financial Condition (Unaudited) (Dollars in thousands, except share and per share data) December 31, 2016 September 30, 2016 December 31, 2015 ----------------- ------------------ ----------------- ASSETS Cash and cash equivalents $152,736 $124,977 $166,092 Investment securities available-for-sale 884,232 968,853 1,157,246 Investment securities held-to-maturity 332,505 355,427 427,503 Non-marketable securities 14,949 12,373 22,529 Loans 2,860,921 2,822,555 2,587,673 Allowance for loan losses (29,174) (28,021) (27,119) ------- ------- ------- Loans, net 2,831,747 2,794,534 2,560,554 Loans held for sale 24,187 20,341 13,292 Other real estate owned 15,662 21,200 20,814 Premises and equipment, net 95,671 96,861 103,103 Goodwill 59,630 59,630 59,630 Intangible assets, net 6,949 8,319 12,429 Other assets 154,778 143,898 140,716 ------- ------- ------- Total assets $4,573,046 $4,606,413 $4,683,908 ========== ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Non-interest bearing demand deposits $846,744 $841,421 $815,054 Interest bearing demand deposits 427,538 416,153 436,745 Savings and money market 1,422,321 1,393,661 1,394,995 --------- --------- --------- Total transaction deposits 2,696,603 2,651,235 2,646,794 Time deposits 1,172,046 1,173,772 1,193,883 --------- --------- --------- Total deposits 3,868,649 3,825,007 3,840,677 Securities sold under agreements to repurchase 92,011 113,307 136,523 Federal Home Loan Bank advances 38,665 51,359 40,000 Other liabilities 37,532 66,968 49,164 ------ ------ ------ Total liabilities 4,036,857 4,056,641 4,066,364 Shareholders' equity: Common stock 514 514 513 Additional paid in capital 984,087 997,665 997,926 Retained earnings 55,454 47,347 38,670 Treasury stock (502,104) (504,301) (419,660) Accumulated other comprehensive income, net of tax (1,762) 8,547 95 ------ ----- --- Total shareholders' equity 536,189 549,772 617,544 ------- ------- ------- Total liabilities and shareholders' equity $4,573,046 $4,606,413 $4,683,908 ========== ========== ========== SHARE DATA Average basic shares outstanding 26,294,787 27,654,827 30,625,371 Average diluted shares outstanding 27,473,995 27,898,756 30,795,333 Ending shares outstanding 26,386,583 26,282,224 30,358,509 Common book value per share $20.32 $20.92 $20.34 Tangible common book value per share(1) $18.15 $18.67 $18.22 Tangible common book value per share, excluding accumulated other comprehensive income(1) $18.22 $18.35 $18.22 CAPITAL RATIOS Average equity to average assets 11.83% 12.49% 13.17% Tangible common equity to tangible assets(1) 10.61% 10.79% 11.98% Leverage ratio 10.39% 10.46% 11.75% Tier 1 risk-based capital ratios 14.15% 14.43% 17.48% Total risk-based capital ratio 15.03% 15.29% 18.37%
(1) Represents a non-GAAP financial measure. See non-GAAP reconciliation below.
NATIONAL BANK HOLDINGS CORPORATION Loan Portfolio (Dollars in thousands) Accounting Treatment Period End Loan Balances December 31, 2016 December 31, 2016 December 31, September 30, vs. September 30, 2016 December 31, vs. December 31, 2015 2016 2016 % Change 2015 % Change ---- ---- -------- ---- -------- Non 310-30(1): Commercial: Commercial and industrial $1,074,696 $1,043,544 3.0% $892,889 20.4% Owner occupied commercial real estate 221,544 213,986 3.5% 184,619 20.0% Agriculture 134,637 133,109 1.1% 145,558 (7.5)% Energy 90,273 86,628 4.2% 146,880 (38.5)% ------ ------ ------- Total commercial 1,521,150 1,477,267 3.0% 1,369,946 11.0% Commercial real estate non-owner occupied 437,642 453,248 (3.4)% 321,712 36.0% Residential real estate 728,361 706,791 3.1% 662,550 9.9% Consumer 27,916 27,586 1.2% 30,635 (8.9)% ------ ------ ------ Total non 310-30 2,715,069 2,664,892 1.9% 2,384,843 13.8% ASC 310-30: Commercial 39,280 43,339 (9.4)% 57,474 (31.7)% Commercial real estate non-owner occupied 89,150 95,487 (6.6)% 121,173 (26.4)% Residential real estate 16,524 17,654 (6.4)% 21,452 (23.0)% Consumer 898 1,183 (24.1)% 2,731 (67.1)% --- ----- ----- Total ASC 310-30 145,852 157,663 (7.5)% 202,830 (28.1)% ------- ------- ------- Total loans $2,860,921 $2,822,555 1.4% $2,587,673 10.6% ========== ========== ==========
(1) Included in non 310-30 loans are originated loans of $2,567,638, $2,501,426 and $2,180,267 as of December 31, 2016, September 30, 2016 and December 31, 2015, respectively, and loans acquired under business combinations of $147,431, $163,466 and $204,576 as of December 31, 2016, September 30, 2016 and December 31, 2015, respectively.
Originations(1) Fourth quarter Third quarter Second quarter First quarter Fourth quarter 2016 2016 2016 2016 2015 ---- ---- ---- ---- ---- Commercial: Commercial and industrial $109,670 $92,433 $142,179 $59,361 $122,664 Owner occupied commercial real estate 18,606 19,091 17,883 10,399 13,395 Agriculture 18,480 9,589 18,072 10,375 24,194 Energy 4,433 (1,251) (17,328) (13,984) 1,075 ----- ------ ------- ------- ----- Total commercial 151,189 119,862 160,806 66,151 161,328 Commercial real estate non-owner occupied 30,227 54,456 89,109 44,876 23,260 Residential real estate 89,968 102,703 63,815 49,722 50,387 Consumer 3,566 4,995 3,158 2,671 3,086 ----- ----- ----- ----- ----- Total $274,950 $282,016 $316,888 $163,420 $238,061 ======== ======== ======== ======== ========
(1) Originations equal, for each quarter, closed end funded loans and net fundings under revolving lines of credit.
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 December 31, 2016 September 30, 2016 December 31, 2015 ----------------- ------------------ ----------------- Average Average Average Average Average Average Balance Interest Rate Balance Interest Rate Balance Interest Rate ------- -------- ---- ------- -------- ---- ------- -------- ---- Interest earning assets: ASC 310-30 loans $154,353 $6,603 17.11% $162,157 $8,597 21.21% $209,268 $11,527 22.03% Non 310-30 loans FTE(1)(2)(3)(4) 2,727,296 27,265 3.98% 2,630,064 25,893 3.92% 2,332,948 23,857 4.06% Investment securities available-for-sale 930,398 4,181 1.80% 1,003,347 4,552 1.81% 1,207,785 7,234 2.40% Investment securities held-to-maturity 345,854 2,396 2.77% 371,164 2,543 2.74% 436,930 1,431 1.31% Other securities 13,201 167 5.06% 13,003 160 4.92% 22,287 247 4.43% Interest earning deposits and securities purchased under agreements to resell 59,075 74 0.50% 47,997 60 0.50% 139,244 124 0.35% ------ --- ------ --- ------- --- Total interest earning assets FTE(4) $4,230,177 $40,686 3.83% $4,227,732 $41,805 3.93% $4,348,462 $44,420 4.05% ========== ======= ========== ======= ========== ======= Cash and due from banks $64,880 $73,709 $57,579 Other assets 325,960 339,837 341,840 Allowance for loan losses (28,789) (40,509) (24,748) ------- ------- ------- Total assets $4,592,228 $4,600,769 $4,723,133 ========== ========== ========== Interest bearing liabilities: Interest bearing demand, savings and money market deposits $1,844,701 $1,296 0.28% $1,799,085 $1,189 0.26% $1,812,345 $1,184 0.26% Time deposits 1,169,325 2,362 0.80% 1,174,269 2,290 0.78% 1,222,829 2,151 0.70% Securities sold under agreements to repurchase 99,475 38 0.15% 117,028 37 0.13% 143,294 60 0.17% Federal Home Loan Bank advances 52,199 177 1.36% 50,766 184 1.44% 40,000 168 1.67% ------ --- ------ --- ------ --- Total interest bearing liabilities $3,165,700 $3,873 0.49% $3,141,148 $3,700 0.47% $3,218,468 $3,563 0.44% ========== ====== ========== ====== ========== ====== Demand deposits $835,263 $824,848 $825,979 Other liabilities 47,794 60,199 56,447 ------ ------ ------ Total liabilities 4,048,757 4,026,195 4,100,894 --------- --------- --------- Shareholders' equity 543,471 574,574 622,239 ------- ------- ------- Total liabilities and shareholders' equity $4,592,228 $4,600,769 $4,723,133 ========== ========== ========== Net interest income $36,813 $38,105 $40,857 ======= ======= ======= Interest rate spread FTE(4) 3.34% 3.46% 3.61% Net interest earning assets $1,064,477 $1,086,584 $1,129,994 ========== ========== ========== Net interest margin FTE(4) 3.46% 3.59% 3.73% Ratio of average interest earning assets to average interest bearing liabilities 133.63% 134.59% 135.11%
(1) Originated loans are net of deferred loan fees, less costs, which are included in interest income over the life of the loan. (2) Includes originated loans with average balances of $2,570,908, $2,460,701 and $2,120,907, and interest income of $23,842, $22,339 and $19,306, with tax equivalent yields of 3.85%, 3.78% and 3.78% for the three months ended December 31, 2016, September 30, 2016 and December 31, 2015, respectively. (3) Non 310-30 loans include loans held-for-sale. Average balances during the three months ended December 31, 2016, September 30, 2016 and December 31, 2015 were $24,679, $15,931 and $9,421, and interest income was $310, $238 and $166 for the same periods, respectively. (4) Presented on a fully taxable equivalent basis using the statutory tax rate of 35%. The tax equivalent adjustments included above are $1,028, $1,041 and $928 for the three months ended December 31, 2016, September 30, 2016 and December 31, 2015, respectively.
NATIONAL BANK HOLDINGS CORPORATION Summary of Net Interest Margin (Dollars in thousands) For the year ended December 31, 2016 For the year ended December 31, 2015 ------------------------------------ ------------------------------------ Average Average Average Average Balance Interest Rate Balance Interest Rate ------- -------- ---- ------- -------- ---- Interest earning assets: ASC 310-30 loans $170,330 $33,256 19.52% $237,453 $47,255 19.90% Non 310-30 loans FTE(1)(2)(3)(4) 2,545,643 100,142 3.93% 2,109,152 86,693 4.11% Investment securities available-for-sale 1,035,679 18,991 1.83% 1,327,245 26,398 1.99% Investment securities held-to-maturity 382,366 10,674 2.79% 476,924 11,747 2.46% Other securities 14,975 748 4.99% 25,865 1,210 4.68% Interest earning deposits and securities purchased under agreements to resell 141,178 718 0.51% 262,500 799 0.30% ------- --- ------- --- Total interest earning assets FTE(4) $4,290,171 $164,529 3.84% $4,439,139 $174,102 3.92% ========== ======== ========== ======== Cash and due from banks $63,513 $59,526 Other assets 332,122 353,344 Allowance for loan losses (33,853) (20,939) ------- ------- Total assets $4,651,953 $4,831,070 ========== ========== Interest bearing liabilities: Interest bearing demand, savings and money market deposits $1,865,225 $4,985 0.27% $1,758,965 $4,524 0.26% Time deposits 1,177,523 8,978 0.76% 1,281,171 9,085 0.71% Securities sold under agreements to repurchase 109,246 152 0.14% 197,728 187 0.09% Federal Home Loan Bank advances 45,773 693 1.51% 40,000 666 1.67% ------ --- ------ --- Total interest bearing liabilities $3,197,767 $14,808 0.46% $3,277,864 $14,462 0.44% ========== ======= ========== ======= Demand deposits $818,901 $782,431 Other liabilities 51,587 69,299 ------ ------ Total liabilities 4,068,255 4,129,594 --------- --------- Shareholders' equity 583,698 701,476 ------- ------- Total liabilities and shareholders' equity $4,651,953 $4,831,070 ========== ========== Net interest income $149,721 $159,640 ======== ======== Interest rate spread FTE(4) 3.38% 3.48% Net interest earning assets $1,092,404 $1,161,275 ========== ========== Net interest margin FTE(4) 3.49% 3.60% Ratio of average interest earning assets to average interest bearing liabilities 134.16% 135.43%
(1) Originated loans are net of deferred loan fees, less costs, which are included in interest income over the life of the loan. (2) Includes originated loans with average balances of $2,368,968 and $1,893,792, and interest income of $85,792 and $70,569, with tax equivalent yields of 3.79% and 3.87% for the years ended December 31, 2016, and 2015, respectively. (3) Non 310-30 loans include loans held-for-sale. Average balances during the years ended December 31, 2016 and 2015, were $15,179 and $7,097, and interest income was $830 and $589 for the same periods, respectively. (4) Presented on a fully taxable equivalent basis using the statutory tax rate of 35%. The tax equivalent adjustments included above are $4,081 and $2,695 for the years ended December 31, 2016 and 2015, respectively.
NATIONAL BANK HOLDINGS CORPORATION Allowance for Loan Losses (Dollars in thousands) Allowance for Loan Losses Analysis As of and for the three months ended ------------------------------------ December 31, 2016 September 30, 2016 December 31, 2015 ----------------- ------------------ ----------------- ASC Non ASC Non ASC Non 310-30 310-30 310-30 310-30 310-30 310-30 Loans Loans Total Loans Loans Total Loans Loans Total ----- ----- ----- ----- ----- ----- ----- ----- ----- Beginning allowance for loan losses $243 $27,778 $28,021 $231 $39,875 $40,106 $875 $22,952 $23,827 Charge-offs (259) (259) (6) (17,540) (17,546) - (2,313) (2,313) Recoveries - 130 130 - 168 168 4 178 182 Provision expense (18) 1,300 1,282 18 5,275 5,293 198 5,225 5,423 --- ----- ----- --- ----- ----- --- ----- ----- Ending ALL $225 $28,949 $29,174 $243 $27,778 $28,021 $1,077 $26,042 $27,119 ==== ======= ======= ==== ======= ======= ====== ======= ======= Ratio of annualized net charge-offs to average total loans during the period, respectively 0.00% 0.02% 0.02% 0.01% 2.64% 2.49% (0.01)% 0.36% 0.33% Ratio of ALL to total loans outstanding at period end, respectively 0.15% 1.07% 1.02% 0.15% 1.04% 0.99% 0.53% 1.09% 1.05% Ratio of ALL to total non- performing loans at period end, respectively(1) 0.00% 94.24% 94.98% 0.00% 123.58% 124.66% 0.00% 101.54% 105.74% Total loans $145,852 $2,715,069 $2,860,921 $157,663 $2,664,892 $2,822,555 $202,830 $2,384,843 $2,587,673 Average total loans during the period $154,353 $2,702,617 $2,856,970 $162,157 $2,614,133 $2,776,290 $209,268 $2,323,527 $2,532,795 Total non- performing loans(1) $ - $30,717 $30,717 $ - $22,478 $22,478 $ - $25,647 $25,647
(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.
Non 310-30 Allowance for Loan Losses Analysis As of and for the three months ended ------------------------------------ December 31, 2016 September 30, 2016 June 30, 2016 ----------------- ------------------ ------------- Non Total Non Total Non Total 310-30 Non 310-30 Non 310-30 Non Energy Excluding 310-30 Energy Excluding 310-30 Energy Excluding 310-30 Portfolio Energy Loans Portfolio Energy Loans Portfolio Energy Loans --------- ------ ----- --------- ------ ----- --------- ------ ----- Beginning allowance for loan losses $3,662 $24,116 $27,778 $15,443 $24,432 $39,875 $14,486 $22,465 $36,951 Charge-offs - (259) (259) (15,700) (1,840) (17,540) (3,374) (312) (3,686) Recoveries - 130 130 - 168 168 - 210 210 Provision expense (113) 1,413 1,300 3,919 1,356 5,275 4,331 2,069 6,400 ---- ----- ----- ----- ----- ----- ----- ----- ----- Ending ALL $3,549 $25,400 $28,949 $3,662 $24,116 $27,778 $15,443 $24,432 $39,875 ====== ======= ======= ====== ======= ======= ======= ======= ======= Ratio of annualized net charge-offs to average total loans during the period, respectively 0.00% 0.02% 0.02% 65.30% 0.26% 2.64% 11.46% 0.02% 0.58% Ratio of ALL to total loans outstanding at period end, respectively 3.93% 0.97% 1.07% 4.23% 0.94% 1.04% 14.75% 0.99% 1.55% Total loans $90,273 $2,624,796 $2,715,069 $86,628 $2,578,264 $2,664,892 $104,663 $2,464,558 $2,569,221 Average loans $88,450 $2,614,167 $2,702,617 $95,645 $2,518,488 $2,614,133 $118,382 $2,294,994 $2,413,375
NATIONAL BANK HOLDINGS CORPORATION Asset Quality (Dollars in thousands) Non 310-30 Past Due Loans December 31, 2016 September 30, 2016 December 31, 2015 ----------------- ------------------ ----------------- Loans 30-89 days past due and still accruing interest $2,296 $1,374 $6,716 Loans 90 days past due and still accruing interest - 428 165 Non-accrual loans(1) 30,717 22,478 25,647 ------ ------ ------ Total past due and non- accrual loans $33,013 $24,280 $32,528 ======= ======= ======= Total 90 days past due and still accruing interest and non- accrual loans to total loans 1.13% 0.86% 1.08% Total non-accrual loans to total loans 1.13% 0.84% 1.08% % of total past due and non-accrual loans that carry fair value marks 10.75% 15.41% 22.01%
(1) Includes non-accrual energy loans of $12,645, $13,313 and $12,009 at December 31, 2016, September 30, 2016 and December 31, 2015, respectively.
Asset Quality Data December 31, 2016 September 30, 2016 December 31, 2015 ----------------- ------------------ ----------------- Non-performing loans(1) 30,717 22,478 25,647 OREO 15,662 21,200 20,814 Other repossessed assets - 100 894 --- --- --- Total non- performing assets $46,379 $43,778 $47,355 ======= ======= ======= Accruing restructured loans $5,766 $8,780 $8,403 Non-performing loans to total loans 1.07% 0.80% 0.99% Non-performing loans excluding energy sector loans to total loans excluding energy sector loans 0.65% 0.33% 0.56% Total non- performing assets to total loans and OREO 1.61% 1.54% 1.81% Total non- performing assets excluding energy sector to total loans excluding energy sector loans and OREO 1.21% 1.10% 1.44%
(1) Includes non-accrual energy loans of $12,645, $13,313 and $12,009 at December 31, 2016, September 30, 2016 and December 31, 2015, respectively.
Changes in Accretable Yield For the three months ended Life-to-date -------------------------- ------------ December 31, 2016 September 30, 2016 December 31, 2015 December 31, 2016 ----------------- ------------------ ----------------- ----------------- Accretable yield at beginning of period $63,673 $67,765 $93,015 $ - Additions through acquisitions - - - 214,996 Reclassification from non-accretable difference to accretable yield 3,704 4,962 3,367 270,646 Reclassification to non-accretable difference from accretable yield (298) (457) (661) (32,766) Accretion (6,603) (8,597) (11,527) (392,400) ------ ------ ------- -------- Accretable yield at end of period $60,476 $63,673 $84,194 $60,476 ======= ======= ======= =======
NATIONAL BANK HOLDINGS CORPORATION Key Ratios As of and for the three months ended As of and for the years ended ------------------------------------ ----------------------------- December 31, September 30, December 31, December 31, December 31, 2016 2016 2015 2016 2015 ---- ---- ---- ---- ---- Key Ratios(1) ------------ Return on average assets 0.87% 0.72% 0.28% 0.50% 0.10% Return on average tangible assets(2) 0.95% 0.80% 0.36% 0.57% 0.17% Return on average tangible assets before provision for loan losses and taxes FTE(2) 1.21% 1.55% 1.31% 1.29% 0.60% Return on average equity 7.31% 5.76% 2.13% 3.95% 0.70% Return on average tangible common equity(2) 8.87% 7.07% 2.97% 5.04% 1.29% Interest earning assets to interest bearing liabilities (end of period)(3) 133.44% 133.09% 133.71% 133.44% 133.71% Loans to deposits ratio (end of period) 74.58% 74.32% 67.72% 74.58% 67.72% Non-interest bearing deposits to total deposits (end of period) 21.89% 22.00% 21.22% 21.89% 21.22% Net interest margin(4) 3.37% 3.49% 3.64% 3.39% 3.54% Net interest margin FTE (2)(4) 3.46% 3.59% 3.73% 3.49% 3.60% Interest rate spread FTE(5) 3.34% 3.46% 3.61% 3.38% 3.48% Yield on earning assets(3) 3.73% 3.84% 3.97% 3.74% 3.86% Yield on earning assets FTE(2)(3) 3.83% 3.93% 4.05% 3.84% 3.92% Cost of interest bearing liabilities(3) 0.49% 0.47% 0.44% 0.46% 0.44% Cost of deposits 0.38% 0.36% 0.35% 0.36% 0.36% Non-interest expense to average assets 2.98% 2.89% 3.55% 2.92% 3.27% Efficiency ratio FTE(2)(6) 70.62% 64.37% 72.61% 68.79% 84.28% Asset Quality Data(7)(8)(9) -------------------------- Non-performing loans to total loans 1.07% 0.80% 0.99% 1.07% 0.99% Non-performing assets to total loans and OREO 1.61% 1.54% 1.81% 1.61% 1.81% Allowance for loan losses to total loans 1.02% 0.99% 1.05% 1.02% 1.05% Allowance for loan losses to non-performing loans 94.98% 124.66% 105.74% 94.98% 105.74% Net charge-offs to average loans(1) 0.02% 2.49% 0.33% 0.80% 0.12%
(1) 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) The efficiency ratio represents non- interest expense, less intangible asset amortization, as a percentage of net interest income on a FTE basis plus non- interest income. (7) 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. (8) Non-performing assets include non- performing loans, other real estate owned and other repossessed assets. (9) 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 December 31, 2016 September 30, 2016 December 31, 2015 ----------------- ------------------ ----------------- Total shareholders' equity $536,189 $549,772 $617,544 Less: goodwill and intangible assets, net (66,580) (67,950) (72,060) Add: deferred tax liability related to goodwill 9,323 8,935 7,772 ----- ----- ----- Tangible common equity (non-GAAP) $478,932 $490,757 $553,256 ======== ======== ======== Total assets $4,573,046 $4,606,413 $4,683,908 Less: goodwill and intangible assets, net (66,580) (67,950) (72,060) Add: deferred tax liability related to goodwill 9,323 8,935 7,772 ----- ----- ----- Tangible assets (non-GAAP) $4,515,789 $4,547,398 $4,619,620 ========== ========== ========== Tangible common equity to tangible assets calculations: Total shareholders' equity to total assets 11.72% 11.93% 13.18% Less: impact of goodwill and intangible assets, net (1.11)% (1.14)% (1.20)% ------ ------ ------ Tangible common equity to tangible assets (non-GAAP) 10.61% 10.79% 11.98% ===== ===== ===== Tangible common book value per share calculations: Tangible common equity (non-GAAP) $478,932 $490,757 $553,256 Divided by: ending shares outstanding 26,386,583 26,282,224 30,358,509 ---------- ---------- ---------- Tangible common book value per share (non-GAAP) $18.15 $18.67 $18.22 ====== ====== ====== Tangible common book value per share, excluding accumulated other comprehensive income calculations: Tangible common equity (non-GAAP) $478,932 $490,757 $553,256 Less: accumulated other comprehensive income, net of tax 1,762 (8,547) (95) ----- ------ --- Tangible common book value, excluding accumulated other comprehensive income, net of tax (non-GAAP) 480,694 482,210 553,161 Divided by: ending shares outstanding 26,386,583 26,282,224 30,358,509 ---------- ---------- ---------- Tangible common book value per share, excluding accumulated other comprehensive income, net of tax (non-GAAP) $18.22 $18.35 $18.22 ====== ====== ======
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 years ended ------------------------------------ ----------------------------- December 31, 2016 September 30, 2016 December 31, 2015 December 31, 2016 December 31, 2015 ----------------- ------------------ ----------------- ----------------- ----------------- Net income $9,989 $8,314 $3,340 $23,060 $4,881 Add: impact of core deposit intangible amortization expense, after tax 836 836 836 3,343 3,295 --- --- --- ----- ----- Net income adjusted for impact of core deposit intangible amortization expense, after tax $10,825 $9,150 $4,176 $26,403 $8,176 ======= ====== ====== ======= ====== Income before income taxes FTE (non-GAAP) $11,098 $11,050 $8,623 $30,088 $10,620 Add: impact of core deposit intangible amortization expense, before tax 1,370 1,370 1,370 5,480 5,401 Add: provision for loan losses 1,282 5,293 5,423 23,651 12,444 ----- ----- ----- ------ ------ FTE income adjusted for impact of core deposit intangible amortization expense and provision (non- GAAP) $13,750 $17,713 $15,416 $59,219 $28,465 ======= ======= ======= ======= ======= Average assets $4,592,228 $4,600,769 $4,723,133 $4,651,953 $4,831,070 Less: average goodwill and intangible assets, net of deferred tax asset related to goodwill (57,932) (59,685) (64,954) (59,977) (66,549) ------- ------- ------- ------- ------- Average tangible assets (non-GAAP) $4,534,296 $4,541,084 $4,658,179 $4,591,976 $4,764,521 ========== ========== ========== ========== ========== Average shareholders' equity $543,421 $574,574 $622,239 $583,686 $701,476 Less: average goodwill and intangible assets, net of deferred tax asset related to goodwill (57,932) (59,685) (64,954) (59,977) (66,549) ------- ------- ------- ------- ------- Average tangible common equity (non-GAAP) $485,489 $514,889 $557,285 $523,709 $634,927 ======== ======== ======== ======== ======== Return on average assets (non- GAAP) 0.87% 0.72% 0.28% 0.50% 0.10% Return on average tangible assets (non-GAAP) 0.95% 0.80% 0.36% 0.57% 0.17% Return on average tangible assets before provision for loan losses and taxes FTE (non- GAAP) 1.21% 1.55% 1.31% 1.29% 0.60% Return on average equity (non- GAAP) 7.31% 5.76% 2.13% 3.95% 0.70% Return on average tangible common equity (non-GAAP) 8.87% 7.07% 2.97% 5.04% 1.29%
Fully Taxable Equivalent Yield on Earning Assets and Net Interest Margin As of and for the three months ended As of and for the years ended ------------------------------------ ----------------------------- December 31, 2016 September 30, 2016 December 31, 2015 December 31, 2016 December 31, 2015 ----------------- ------------------ ----------------- ----------------- ----------------- Interest income $39,658 $40,764 $43,492 $160,448 $171,407 Add: impact of taxable equivalent adjustment 1,028 1,041 928 4,081 2,695 ----- ----- --- ----- ----- Interest income FTE (non-GAAP) $40,686 $41,805 $44,420 $164,529 $174,102 ======= ======= ======= ======== ======== Net interest income $35,785 $37,064 $39,929 $145,640 $156,945 Add: impact of taxable equivalent adjustment 1,028 1,041 928 4,081 2,695 ----- ----- --- ----- ----- Net interest income FTE (non-GAAP) $36,813 $38,105 $40,857 $149,721 $159,640 ======= ======= ======= ======== ======== Average earning assets $4,230,177 $4,227,732 $4,348,462 $4,290,171 $4,439,139 Yield on earning assets 3.73% 3.84% 3.97% 3.74% 3.86% Yield on earning assets FTE (non-GAAP) 3.83% 3.93% 4.05% 3.84% 3.92% Net interest margin 3.37% 3.49% 3.64% 3.39% 3.54% Net interest margin FTE (non-GAAP) 3.46% 3.59% 3.73% 3.49% 3.60%
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SOURCE National Bank Holdings Corporation