NBHC Posts Q3 Net Income Jump, Deposits Up 2.8%

TL;DR

**NBHC's Q3 earnings show solid growth and strong deposit inflows, making it a stable regional bank play despite a dip in loan balances.**

AI Summary

National Bank Holdings Corp (NBHC) reported a net income of $35.285 million for the three months ended September 30, 2025, an increase of 6.6% from $33.105 million in the same period of 2024. For the nine months ended September 30, 2025, net income rose to $93.538 million, up 3.2% from $90.631 million in 2024. Total assets increased to $10.152 billion as of September 30, 2025, from $9.807 billion at December 31, 2024, a 3.5% rise. Loans, net, decreased by 4.1% to $7.341 billion from $7.656 billion, while total deposits grew by 2.8% to $8.471 billion from $8.237 billion. The company recorded a provision release for credit loss expense of $1.5 million for the three months ended September 30, 2025, compared to a $2.0 million provision in the prior year, indicating improved credit quality. Non-interest income saw a significant increase of 12.5% to $20.691 million for the quarter, driven by an $8.156 million increase in 'Other non-interest income'. Strategic outlook includes managing interest rate risk and potential impacts from the proposed acquisition of Vista Bancshares, Inc.

Why It Matters

NBHC's consistent net income growth and robust deposit base signal stability in a volatile banking sector, which is crucial for investor confidence. The increase in total assets to over $10 billion positions NBHC as a more significant regional player, potentially attracting larger institutional investors. The decrease in net loans, however, could indicate a more conservative lending approach or reduced demand, impacting future interest income. For customers, the growing deposit base suggests a trusted institution, while employees benefit from a stable, growing company. In a competitive landscape, NBHC's ability to increase non-interest income and release credit loss provisions demonstrates effective risk management and diversified revenue streams, setting it apart from peers struggling with credit quality.

Risk Assessment

Risk Level: medium — The company faces medium risk due to a decrease in net loans by 4.1% to $7.341 billion, which could impact future interest income, and the cautionary note regarding the proposed acquisition of Vista Bancshares, Inc., which carries integration and regulatory approval risks. However, the provision release for credit loss expense of $1.5 million for the quarter indicates improving credit quality, mitigating some loan-related risks.

Analyst Insight

Investors should consider NBHC for its stable net income growth and strong deposit base, but monitor loan portfolio trends and the progress of the Vista acquisition. The release of credit loss provisions suggests a healthy balance sheet, making it a potentially attractive option for value-oriented investors seeking exposure to regional banking.

Financial Highlights

debt To Equity

0.04

revenue

$132,238,000

operating Margin

N/A

total Assets

$10,152,686,000

total Debt

$54,743,000

net Income

$35,285,000

eps

$0.92

gross Margin

N/A

cash Position

$555,560,000

revenue Growth

-4.2%

Revenue Breakdown

Key Numbers

• $35.285M — Net Income (Q3 2025) (Increased 6.6% from $33.105M in Q3 2024)
• $93.538M — Net Income (YTD Sept 2025) (Increased 3.2% from $90.631M in YTD Sept 2024)
• $10.152B — Total Assets (Increased 3.5% from $9.807B at Dec 31, 2024)
• $7.341B — Loans, Net (Decreased 4.1% from $7.656B at Dec 31, 2024)
• $8.471B — Total Deposits (Increased 2.8% from $8.237B at Dec 31, 2024)
• ($1.5M) — Provision for Credit Loss Expense (Q3 2025) (A release, compared to a $2.0M provision in Q3 2024)
• $20.691M — Total Non-Interest Income (Q3 2025) (Increased 12.5% from $18.389M in Q3 2024)
• 37,819,914 — Class A Common Stock Shares Outstanding (As of October 24, 2025)
• $0.92 — Diluted EPS (Q3 2025) (Increased from $0.86 in Q3 2024)
• $0.30 — Common Stock Dividend (Q3 2025) (Increased from $0.28 in Q3 2024)

Key Players & Entities

• National Bank Holdings Corp (company) — registrant
• Vista Bancshares, Inc. (company) — proposed acquisition target
• SEC (regulator) — Securities and Exchange Commission
• $35.285 million (dollar_amount) — net income for Q3 2025
• $93.538 million (dollar_amount) — net income for nine months ended Sept 30, 2025
• $10.152 billion (dollar_amount) — total assets as of Sept 30, 2025
• $7.341 billion (dollar_amount) — loans, net as of Sept 30, 2025
• $8.471 billion (dollar_amount) — total deposits as of Sept 30, 2025
• $1.5 million (dollar_amount) — provision release for credit loss expense for Q3 2025
• $20.691 million (dollar_amount) — total non-interest income for Q3 2025

FAQ

Risk Factors

• Regulatory Compliance and Capital Requirements [high — regulatory]: As a bank holding company, NBHC is subject to extensive regulation by federal and state authorities, including the Federal Reserve and FDIC. Changes in regulations, capital requirements, or supervisory expectations could impact the Company's operations, profitability, and strategic initiatives, such as the proposed acquisition of Vista Bancshares, Inc.
• Interest Rate Risk [high — market]: Fluctuations in interest rates can affect the Company's net interest income and the fair value of its investment securities. The current environment of changing interest rates presents a risk to profitability and asset valuations.
• Credit Quality and Loan Portfolio Performance [medium — financial]: While the provision for credit losses was released in Q3 2025 ($1.5 million release vs. $2.0 million provision in Q3 2024), indicating improved credit quality, the loan portfolio decreased by 4.1% to $7.341 billion. Continued economic uncertainty could still lead to increased non-performing loans and credit losses.
• Integration of Acquisitions [medium — operational]: The proposed acquisition of Vista Bancshares, Inc. presents integration risks. Failure to successfully integrate Vista's operations, systems, and personnel could disrupt business, impact customer retention, and affect the realization of expected synergies.
• Economic Conditions [medium — market]: The Company's financial performance is sensitive to broader economic conditions, including GDP growth, inflation, and employment levels. A significant economic downturn could negatively impact loan demand, credit quality, and overall profitability.
• Liquidity Risk [low — financial]: While total deposits grew by 2.8% to $8.471 billion, maintaining adequate liquidity is crucial. Unexpected deposit outflows or a disruption in funding sources could impact the Company's ability to meet its obligations.

Industry Context

The banking industry is currently navigating a complex environment characterized by evolving interest rate policies, increasing regulatory scrutiny, and ongoing digital transformation. Competition remains intense, with traditional banks facing pressure from both community banks and larger financial institutions, as well as fintech companies. Focus on core deposit gathering and prudent credit management are key strategies for sustained success.

Regulatory Implications

NBHC operates under a stringent regulatory framework. Potential changes in capital adequacy rules, liquidity requirements, or consumer protection laws could necessitate adjustments to business strategies and increase compliance costs. The proposed acquisition of Vista Bancshares, Inc. will also be subject to regulatory approval.

What Investors Should Do

1. Monitor the integration progress of the Vista Bancshares, Inc. acquisition.
2. Analyze the drivers of non-interest income growth.
3. Assess the impact of interest rate sensitivity on net interest margin.
4. Evaluate the loan portfolio composition and credit quality trends.

Key Dates

• 2025-09-30: Quarterly Financial Reporting — Reported net income of $35.285 million, total assets of $10.152 billion, and a release of $1.5 million in provision for credit losses.
• 2025-12-31: Previous Fiscal Year End — Total assets were $9.807 billion and loans, net, were $7.656 billion.
• 2024-09-30: Prior Year Quarter Comparison — Reported net income of $33.105 million and a provision for credit losses of $2.0 million.
• 2025-10-24: Shares Outstanding Record — 37,819,914 Class A Common Stock Shares Outstanding.

Glossary

ACL

Allowance for credit losses, representing the amount set aside to cover potential loan defaults. (A release of $1.5 million in Q3 2025 indicates improved credit quality or reduced expected losses.)

CECL

Current Expected Credit Loss, an accounting standard for estimating credit losses. (The methodology used to determine the ACL, impacting reported loan portfolio health.)

FTE

Fully taxable equivalent, a method to adjust interest income to a tax-equivalent basis for comparison. (Used in analyzing net interest income, especially when comparing different types of investments.)

GAAP

Generally Accepted Accounting Principles, the standard framework for financial accounting and reporting in the U.S. (The basis for NBHC's financial statement preparation.)

MSR

Mortgage servicing right, an asset representing the right to service mortgage loans. (Can be a component of non-interest income, though not explicitly detailed as a driver here.)

NCO

Net charge-offs, the amount of loans deemed uncollectible and charged off, less any recoveries. (A key indicator of actual credit losses experienced by the bank.)

PSU

Performance stock unit, a form of equity compensation tied to achieving specific performance targets. (Likely part of executive compensation, influencing employee incentives.)

SOFR

Secured Overnight Financing Rate, a benchmark interest rate used in financial markets. (Influences the cost of funding and the yield on variable-rate loans and securities.)

Year-Over-Year Comparison

Compared to the prior year's comparable period, National Bank Holdings Corp. has demonstrated solid growth in net income, up 6.6% for Q3 2025. Total assets have also expanded by 3.5% year-to-date. However, the loan portfolio has seen a slight contraction of 4.1%, while deposits have grown by 2.8%. A notable positive development is the shift from a provision for credit losses to a release, indicating improved credit quality, alongside a strong 12.5% increase in non-interest income.

Key Financial Figures

• $0.01 — ered: Class A Common Stock, Par Value $0.01 NBHC NYSE Indicate by check mark

Filing Documents

• nbhc-20250930x10q.htm (10-Q) — 7908KB
• nbhc-20250930xex31d1.htm (EX-31.1) — 17KB
• nbhc-20250930xex31d2.htm (EX-31.2) — 17KB
• nbhc-20250930xex32.htm (EX-32) — 8KB
• 0001475841-25-000063.txt ( ) — 30529KB
• nbhc-20250930.xsd (EX-101.SCH) — 81KB
• nbhc-20250930_cal.xml (EX-101.CAL) — 89KB
• nbhc-20250930_def.xml (EX-101.DEF) — 526KB
• nbhc-20250930_lab.xml (EX-101.LAB) — 797KB
• nbhc-20250930_pre.xml (EX-101.PRE) — 681KB
• nbhc-20250930x10q_htm.xml (XML) — 9070KB

Financial Information

Part I. Financial Information Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 6 Consolidated Statements of Financial Condition as of September 30, 2025 and December 31, 2024 6 Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024 7 Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2025 and 2024 8 Consolidated Statements of Changes in Shareholders' Equity for the three and nine months ended September 30, 2025 and 2024 9 Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 10

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 11 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 47 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 79 Item 4.

Controls and Procedures

Controls and Procedures 79

Other Information

Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 80 Item 1A.

Risk Factors

Risk Factors 80 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 81 Item 5. Other Information 81 Item 6. Exhibits 82 Table of Contents GLOSSARY OF ACRONYMS, ABBREVIATIONS AND TERMS 2023 Plan 2023 Omnibus Incentive Plan FTE Fully taxable equivalent ACL Allowance for credit losses GAAP Generally accepted accounting principles AFS Available-for-sale GDP Gross domestic product AIR Accrued interest receivable GNMA Government National Mortgage Association AOCI Accumulated other comprehensive income (loss) GSE Government sponsored enterprises ASC Accounting Standards Codification HPI Home price index ASU Accounting Standards Update HTM Held-to-maturity ATM Automated Teller Machine ISDA International Swaps and Derivative Association Banks NBH Bank and Bank of Jackson Hole Trust, collectively MBS Mortgage-backed securities BOJH Bank of Jackson Hole MSR Mortgage servicing right BOJHT Bank of Jackson Hole Trust NBHC or the Company National Bank Holdings Corporation Cambr Cambr Solutions, LLC NCO Net charge-offs CECL Current expected credit loss OCI Other Comprehensive Income CRE Commercial real estate OREO Other real estate owned DCF Discounted cash flow PSU Performance stock unit EPS Earnings Per Share ROTA Return on tangible assets ESPP Employee Stock Purchase Plan S&P Standard and Poor's FASB Financial Accounting Standards Board SBA Small Business Administration FDIC Federal Deposit Insurance Corporation SEC Securities and Exchange Commission FHA Federal Housing Administration SOFR Secured overnight financing rate FHLB Federal Home Loan Bank TDMs Troubled debt modifications FHLMC Federal Home Loan Mortgage Corporation Transaction deposits Demand, savings, and money market deposits Fintech Financial technology TSR Total shareholder return FNMA Federal National Mortgage Association Vista Vista Bancshares, Inc. FRB Federal Reserve Bank 3

: FINANCIAL INFORMATIO N

PART I: FINANCIAL INFORMATIO N

: FINANCIAL STATEMENTS

Item 1: FINANCIAL STATEMENTS. NATIONAL BANK HOLDINGS CORPORATION AND SUBSIDIARIES Consolidated Statements of Financial Condition (Unaudited) (In thousands, except share and per share data) September 30, 2025 December 31, 2024 ASSETS Cash and cash equivalents $ 555,560 $ 127,848 Investment securities available-for-sale (at fair value) 612,719 527,547 Investment securities held-to-maturity (fair value of $ 630,802 and $ 451,386 at September 30, 2025 and December 31, 2024, respectively) 689,486 533,108 Other securities 80,526 76,462 Loans 7,429,501 7,751,143 Allowance for credit losses ( 88,280 ) ( 94,455 ) Loans, net 7,341,221 7,656,688 Loans held for sale 22,252 24,495 Other real estate owned 658 662 Premises and equipment, net 211,436 196,773 Goodwill 306,043 306,043 Intangible assets, net 50,331 58,432 Other assets 282,454 299,635 Total assets $ 10,152,686 $ 9,807,693 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Deposits: Non-interest bearing demand deposits $ 2,255,495 $ 2,213,685 Interest bearing demand deposits 1,223,602 1,411,860 Savings and money market 3,832,460 3,592,312 Time deposits 1,160,123 1,020,036 Total deposits 8,471,680 8,237,893 Securities sold under agreements to repurchase 21,303 18,895 Long-term debt, net 54,743 54,511 Federal Home Loan Bank advances — 50,000 Other liabilities 230,031 141,319 Total liabilities 8,777,757 8,502,618 Shareholders' equity: Common stock, par value $ 0.01 per share: 400,000,000 shares authorized; 51,487,888 and 51,487,888 shares issued; and 37,815,589 and 38,054,482 shares outstanding at September 30, 2025 and December 31, 2024, respectively 515 515 Additional paid-in capital 1,169,982 1,167,431 Retained earnings 568,276 508,864 Treasury stock of 13,340,349 and 13,141,392 shares at September 30, 2025 and December 31, 2024, respectively, at cost ( 312,873 ) ( 301

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) September 30, 2025 Note 1 Basis of Presentation National Bank Holdings Corporation is a bank holding company that has elected financial holding company status and was incorporated in the State of Delaware in 2009. The Company is headquartered in Greenwood Village, Colorado, and its primary operations are conducted through its wholly owned subsidiaries NBH Bank and BOJHT. NBH Bank is a Colorado state-chartered bank and a member of the Federal Reserve System, and BOJHT is a Wyoming state-chartered bank and a member of the Federal Reserve System. The Company provides a variety of banking products to both commercial and consumer clients through a network of over 90 banking centers, as of September 30, 2025, located primarily in Colorado, the greater Kansas City region, Utah, Wyoming, Texas, New Mexico and Idaho, as well as through online and mobile banking products and services. The accompanying interim unaudited consolidated financial statements serve to update the National Bank Holdings Corporation Annual Report on Form 10-K for the year ended December 31, 2024 and include the accounts of the Company and its wholly owned subsidiaries, NBH Bank, BOJHT and 2UniFi, LLC. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP and, where applicable, with general practices in the banking industry or guidelines prescribed by bank regulatory agencies. However, they may not include all information and notes necessary to constitute a complete set of financial statements under GAAP applicable to annual periods and accordingly should be read in conjunction with the financial information contained in the Company's most recent Form 10-K . The unaudited consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results presented. All such adjustments are of a normal recurring nature. All signifi

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