National Bank Holdings Corp (NBHC) Announces Impressive Third Quarter 2023 Financial Results
NBHC reports a net income of $36.1 million for Q3 2023, a significant increase from $15.8 million in Q3 2022.
Earnings per share for Q3 2023 stood at $0.94, up from $0.50 in the same quarter last year.
Year-to-date net income for 2023 reached $108.9 million, a 100% increase from the same period in 2022.
The company's return on average tangible assets and return on average tangible common equity also saw substantial growth.
Released on October 24, 2023, National Bank Holdings Corp (NYSE:NBHC)'s third-quarter earnings report reveals a strong financial performance. The company's net income for the quarter was $36.1 million, a significant increase from $15.8 million in Q3 2022. Earnings per share also saw a substantial rise, standing at $0.94 for Q3 2023, up from $0.50 in the same quarter last year.
Financial Highlights
NBHC's year-to-date net income for 2023 reached $108.9 million, marking a 100% increase from the same period in 2022. The return on average tangible assets increased to 1.58%, up from 0.87% in Q3 2022. Similarly, the return on average tangible common equity rose to 18.38%, a significant increase from 8.66% in the same quarter last year.
CEO Tim Laney commented on the results, stating,
We delivered a 10.8% increase in our quarterly earnings to $0.94 per diluted share and a solid return on average tangible common equity of 18.38%. After adjusting for acquisition expenses, year over year pre-provision net revenues grew 54.6%. Year-to-date net income increased $54.4 million or 100% over the prior period to $108.9 million, or $2.85 per diluted share."
Key Financial Details
The report also highlighted that total loans increased by $64.1 million or 3.4% annualized to $7.5 billion at the end of September 2023. The company recorded $1.1 million of provision expense for credit losses, primarily driven by loan growth. The cost of funds totaled 1.80%, compared to 1.48% during the second quarter.
Furthermore, NBHC maintained a well-diversified deposit base with average total deposits increasing by $116.1 million, or 5.8% annualized, to $8.1 billion during the third quarter 2023. Non-interest income also saw an increase of $5.5 million to $19.4 million during the third quarter.
Looking Forward
CEO Tim Laney expressed optimism about the company's future, stating,
We enter the fourth quarter from a position of strength. We operate in high-performing markets where our relationship-based banking model continues to generate a positive impact in our communities and attractive shareholder returns. Our strong balance sheet, solid capital position and diversified funding sources provide optionality to be leveraged for future growth."
This robust financial performance positions National Bank Holdings Corp (NYSE:NBHC) well for continued growth and profitability in the coming quarters.
This article first appeared on GuruFocus.
