NATIONAL BANK HOLDINGS CORPORATION 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%
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/national-bank-holdings-corporation-announces-record-fourth-quarter-and-full-year-2016-financial-results-300397725.html
SOURCE National Bank Holdings Corporation
