GREENWOOD VILLAGE, Colo.,
Jan. 29, 2015 /PRNewswire/ --
National Bank Holdings Corporation (NYSE: NBHC) reported net income
of $2.3 million, or $0.06 per diluted share, for the fourth quarter
of 2014, compared to net income of $3.3
million, or $0.08 per diluted
share, for the third quarter of 2014 and $1.0 million, or $0.02 per diluted share, for the fourth quarter
of 2013. For the full year 2014, net income totaled
$9.2 million, or $0.22 per diluted share, compared to net income
of $6.9 million, or $0.14 per diluted share, during 2013.
In announcing these results, Chief Executive Officer
Tim Laney said, "We finished out
2014 with loan production of $182.2
million, realizing 17% year-over-year spot loan growth and
30% growth in our strategic loan portfolio. We remain focused
on building and maintaining a diverse, conservatively structured
loan portfolio, and that commitment continues to result in
excellent credit quality. This is evidenced by the extremely
low full year net charge-offs of our non 310-30 loan portfolio of
just six basis points. We have done this while also realizing
attractive economic gains from the acquired distressed
non-strategic portfolio. We are now down to the last
$202 million of these loans, from a
starting point of almost $2 billion.
The accelerated pace of the FDIC indemnification asset amortization
is a direct reflection of the continued strong performance of these
acquired portfolios.
We also continue to manage all other available levers of our
business. We have maintained a low-cost deposit base and have
increased our transaction deposits and repurchase agreements by
$100 million since last year.
We are also pleased to announce that we have entered into a new
agreement for our core processing services that will enable us to
provide improved services to our clients while also significantly
reducing our operating expenses following our anticipated
conversion later this year."
Mr. Laney added, "During the fourth quarter, we repurchased
another 991 thousand shares, or 2.5% of our outstanding
shares. Since early 2013, we have repurchased 13.5 million
shares, or 25.8% of shares outstanding, at a weighted average price
of $19.70. We intend to
continue to use share repurchases as a lever for capital
management."
Brian Lilly, Chief Financial
Officer, added, "We had a very productive quarter operationally,
with a lot of moving pieces. We continue to believe that it
is important to evaluate the progress of building our company by
analyzing the financial results that are expected to emerge over
time. We do this by excluding the impact of the non-cash FDIC
indemnification asset amortization, FDIC loss-share income, the
large expense/income related to OREO and problem loan workouts, the
impacts of the change in the warrant liability, the contract
termination expenses that were accrued during the fourth quarter of
2014, and the banking center closure related charges that were
accrued in the third quarter of 2013, which can be seen in our
non-GAAP reconciliation starting on page 16. These items
negatively impacted the fourth quarter by a net $0.13 per diluted share and negatively impacted
the year by a net $0.45 per diluted
share. The net impact of these items may fluctuate on a
quarterly basis, but is expected to decrease over time in
connection with the expiration of the FDIC loss-sharing agreements
over the next couple of years and the decreasing problem asset
workout expenses. These adjustments resulted in an adjusted
net earnings per diluted share of $0.19 for the fourth quarter and $0.67 for the year. On the same adjusted
basis, the adjusted return on average tangible assets increased
five basis points over the prior quarter to 0.71% during the fourth
quarter and increased nine basis points from the prior year to
0.66% for the full year of 2014. This analysis provides better
clarity to the emerging profitability and the progress toward
reaching our goal of 1% return on average tangible assets."
Fourth Quarter 2014 Highlights
(All comparisons refer to the third quarter of 2014, except
as noted)
- Grew the strategic loan portfolio by $40.5 million, or 8.4% annualized, driven by
$182.2 million in fourth quarter
originations. The originations were offset by higher than normal
pay-downs and early pay-offs, particularly in the agriculture
portfolio. Strategic loans at December 31,
2014 increased a strong $456.6
million, or 30.4% since December 31,
2013.
- Credit quality remained strong, as annualized net charge-offs
in the non 310-30 portfolio were only 0.05% during the fourth
quarter and 0.06% for the full year.
- Successfully exited $49.4 million
of the remaining non-strategic loan portfolio, a strong 78.1%
annualized. Non-strategic loans decreased $148.2 million for the full year, or 42.4%, to
just $201.7 million at December 31, 2014.
- Total loans ended 2014 at $2.2
billion, a 16.6% increase since December 31, 2013.
- Added a net $14.6 million to
accretable yield for the acquired loans accounted for under ASC
310-30. The favorable results of the quarterly re-yielding also
caused a $10.6 million increase in
the future non-cash amortization of the FDIC indemnification
asset.
- Average demand deposits continued solid growth, adding
$13.1 million, or 7.3% annualized,
while total deposits remained relatively flat as higher-cost time
deposits declined.
- Net interest income totaled $42.6
million, a $0.7 million
increase from the prior quarter. The quarterly increase was
primarily driven by a 12 basis point widening of the net interest
margin to 3.87% (fully taxable equivalent) as increased client
paydowns/payoffs resulted in higher pre-payment fees and 310-30
accelerated accretion added $1.7
million of interest income during the fourth quarter and was
partially offset by lower average earning assets.
- FDIC loss-share related non-interest income resulted in an
increase in net expense of $7.0
million, driven by strong covered asset performance and the
sharing of large gains on sales of OREO.
- Non-interest expenses decreased $4.8
million, or 12.7%, from the prior quarter.
- Repurchased 991,100 shares during the fourth quarter, or 2.5%
of outstanding shares. Since early 2013, 13.5 million shares have
been repurchased, or 25.8% of then outstanding shares, at a
weighted average price of $19.70.
- At December 31, 2014, tangible
common book value per share was $18.63 before consideration of the excess
accretable yield value of $0.83 per
share.
Fourth Quarter 2014 Results
(All comparisons refer to the third quarter of 2014, except
as noted)
Net Interest Income
Net interest income totaled $42.6
million for the fourth quarter of 2014, a $0.7 million increase from the prior quarter as
the net interest margin widened 12 basis points to 3.87% from the
prior quarter of 3.75% (fully taxable equivalent) while average
interest earning assets decreased $58.7
million, or 1.3%, to $4.4
billion. The continued strategy of remixing the
earning assets through the origination of strategic loans coupled
with particularly strong reductions in non-strategic loans during
the fourth quarter and the run-off of the investment securities
portfolios resulted in the slight decline in the average interest
earning assets. The net interest margin widening of 12 basis points
was driven by a 14 basis point increase in the yield on interest
earning assets to 4.21% from 4.07% in the prior quarter. The
higher yield was primarily driven by $0.9
million in pre-payment fees on originated loans coupled with
$0.8 million of accelerated accretion
within the 310-30 loan portfolio.
Loans
Strategic loans totaled $2.0 billion
at December 31, 2014 and grew $40.5
million during the quarter, or 8.4% annualized.
Included in strategic loans outstanding are $1.6 billion in originated balances, which
increased $46.1 million, or 11.4%
annualized, over the prior quarter. Loan originations totaled
$182.2 million and decreased
$21.1 million, or 10.4%, from the
prior quarter. Higher than normal pay-downs contributed to a
$9.0 million decrease in total loans
during the fourth quarter, which ended the quarter at $2.2 billion. Consistent with the strategy
of exiting the non-strategic loan portfolio, balances of
non-strategic relationships ended the year at $201.7 million, decreasing $49.4 million during the quarter, a strong 78.1%
annualized. Strategic loans include all originated loans in
addition to those acquired loans inside our operating markets that
meet our credit risk profile. Identification as strategic for
acquired loans was made at the time of acquisition. Criteria
utilized in the designation of an acquired loan as "strategic"
include (a) geography, (b) total relationship with borrower and (c)
credit metrics commensurate with our underwriting
standards.
Conservative concentration limits have been followed, and as
such, energy sector loans totaled $175.5
million at December 31, 2014,
representing 8.1% of total loans and 4.0% of earning assets.
Clients in this sector were carefully selected at origination for
strong capitalization, low leverage, and seasoned management
teams. Loans have been conservatively structured to mitigate
stress associated with declining oil and gas prices.
Asset Quality and Provision for Loan Losses
Purchased troubled loans accounted for under 310-30 totaled
$279.6 million at December 31,
2014 and decreased $40.9 million
during the fourth quarter, an annualized decrease of 50.7%,
reflecting workout efforts on these purchased loans. The
quarterly fair value re-measurement on the 310-30 loans resulted in
a favorable net transfer of $14.6
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 $186.1 million.
Non 310-30 loans totaled $1.9
billion and represented 87.1% of total loans at
December 31, 2014. 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
remained low at just 0.05% annualized, which reflects the prudent
underwriting and well-selected clients within this portfolio.
Non-performing non 310-30 loans (comprised of non-accrual loans and
non-accrual TDR's) decreased to $10.8
million at quarter end, representing 0.57% of total non
310-30 loans, compared to 1.02% at September
30, 2014, as a result of pay-downs and pay-offs of several
non-performing loans. A provision for loan losses on the non
310-30 loans of $1.5 million was
recorded during the fourth quarter of 2014, which was $0.3 million lower than the prior
quarter.
OREO ended the quarter at $29.1
million, decreasing $16.8
million, primarily due to strong OREO sales during the
quarter. The gains on these sales of OREO were $10.4 million, of which $8.9 million were covered by loss-sharing
agreements with the FDIC. Of the $29.1
million OREO at December 31, 2014, $18.5 million, or 63.4%, were covered by
loss-sharing agreements with the FDIC.
Deposits
Transaction deposits (defined as total deposits less time deposits)
and client repurchase agreements averaged $2.5 billion during the fourth quarter,
increasing $10.9 million, or 1.7%
annualized, on the strength of a $13.1
million, or 7.3% annualized, increase in average demand
deposits. Total deposits and client repurchase agreements
averaged $3.9 billion during the
fourth quarter, decreasing $26.2
million, or 2.7% annualized, and was driven by a
$37.1 million decrease in higher-cost
time deposits. Additionally, the average cost of total
deposits remained unchanged from the prior quarter at 0.37%.
The balance sheet continues to be strongly funded by client
deposits and client repurchase agreements and at December 31,
2014, these client fundings comprised 96.9% of total
liabilities.
Non-Interest Income
Banking related non-interest income (excludes FDIC-related
non-interest income, gain on previously charged-off acquired loans
and OREO related income) totaled $8.0
million during the fourth quarter of 2014 and increased
$0.2 million, or 8.2% annualized,
compared to the prior quarter. A seasonal decrease in service
charges was more than offset by an increase in bank owned life
insurance income.
FDIC loss-share related non-interest income totaled a negative
$14.2 million for the quarter and was
$7.0 million higher than the prior
quarter primarily due to a $5.4
million increase in other FDIC loss-sharing income (expense)
related to the sharing of gains on sales of several covered OREO
properties. As of December 31, 2014, the FDIC
indemnification asset was $39.1
million. Our current projection for the amortization
of the FDIC indemnification asset is between $18.0 million and $28.0 million in 2015.
The benefit of the increased client cash flows is primarily
captured in the 310-30 accretable yield over the remaining life of
the loans as most of the FDIC covered assets are accounted for in
the 310-30 loan pools.
"We had a strong uptick in the success of our workout
efforts regarding our purchased troubled loan portfolio and
related OREO assets this quarter," said Brian Lilly. "While this means higher
returns on the covered loans, it also means we have to share the
gains with the FDIC and as a result, we have lower expected
reimbursements from the FDIC. This translates into additional
non-cash write-downs of the FDIC indemnification asset
receivable. In the fourth quarter, this receivable write-down
was $7.9 million, or $0.12 per diluted share. While we expect
that the FDIC loss-share related non-interest income will continue
to fluctuate and be a reflection of our workout efforts, our
current expectation is that the non-cash write-down of the FDIC
indemnification asset receivable will be between $0.30 and $0.46 per diluted share in 2015."
Non-Interest Expense
Total non-interest expense was $33.1
million during the fourth quarter of 2014, decreasing
$4.8 million from the previous
quarter. Operating expenses totaled $37.8 million and increased $0.4 million, driven by a $0.3 million increase in marketing-related
expenses related to the timing of marketing campaigns. The
quarter included a $4.1 million
contract termination charge related to the termination of a core
processing system contract and the entry into a new core processing
contract with a different partner. In addition to enhanced
product and service offerings, this strategic move will provide a
cash payback on our core processing system change in less than one
year.
OREO and problem loan expenses totaled a net gain of
$8.5 million and improved
$10.4 million from the prior
quarter. The improvement was attributable to an $8.8 million increase in gains on the sale of
OREO during the quarter, coupled with a $1.6
million decrease in OREO and problem loan expenses.
OREO and problem loan expenses are expected to continue to
fluctuate quarterly as we resolve the acquired problem asset
portfolio.
Income tax expense totaled $0.8
million during the fourth quarter, an effective tax rate of
25.3% compared to 16.9% in the third quarter. A benefit from
tax planning strategies implemented during the third quarter was
offset with the write-off of deferred tax assets related to expired
stock-based compensation.
Capital
Capital ratios continue to be strong and well in excess of federal
bank regulatory agency "well capitalized" thresholds.
Shareholders' equity totaled $794.6
million at December 31, 2014 and decreased $14.4 million from the prior quarter, due to the
repurchase of 991,100 shares, and was partially offset by a
$3.9 million increase in accumulated
other comprehensive income, net of tax, which was driven by the
fair market value fluctuations of the available-for-sale investment
securities portfolio. The shares repurchased represented a
2.5% reduction in shares outstanding during the quarter and brings
the cumulative shares repurchased since early 2013 to 25.8% of the
shares then outstanding.
Tangible common book value per share at December 31, 2014
was $18.63, compared to $18.49 at September 30, 2014, and the
tangible common equity to tangible assets ratio decreased 29 basis
points to 15.25% at December 31, 2014.
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, 2014 accretable yield balance on the
310-30 loans of $113.5 million would
add $1.78 after-tax to the tangible
book value per share. A more conservative methodology, that
management uses, values the excess yield and then considers the
timing of the accreted interest income recognition. Under
this more conservative methodology, we first net the accretable
yield on 310-30 loans and the amortization of the FDIC
indemnification asset and then calculate the excess above a 4.0%
yield (an approximate yield on new loan originations), and finally
discount the amounts at 5%. The result would add $0.83 after-tax to our tangible book value per
share as of December 31, 2014.
Year-Over-Year Review
(All comparisons refer to the full year 2013)
Net income for 2014 was $9.2
million, or $0.22 per diluted
share, compared to net income of $6.9
million for 2013, or $0.14 per
diluted share. Net interest income totaled $170.2 million during 2014 and decreased
$8.7 million, or 4.9%, from 2013,
primarily driven by lower earning assets. Average interest
earning assets decreased $251.6
million, or 5.4%, from the prior year, largely due to the
successful repurchase of 6.1 million shares and a reduction in the
investment portfolio. The decrease in interest earning assets
was partially offset by a four basis point widening of the net
interest margin to 3.85% from 3.81% (fully taxable
equivalent). The continued resolution of the higher-yielding
acquired non-strategic loan portfolio was mostly offset by strong
organic growth in the strategic loan portfolio. As a result,
the yield on interest earning assets increased by one basis point
and was complemented by a three basis point decrease in the
cost of interest bearing liabilities.
Loan balances as of December 31, 2014 totaled $2.2 billion and increased $308.3 million, or 16.6%, since December 31, 2013. Strategic loans
increased $456.6 million since
December 31, 2013, a 30.4% increase,
on the strength of loan originations. Loan originations
during 2014 totaled $869.2 million,
increasing 21.7% in 2013 as a result of continued market
penetration. Non-strategic loans declined $148.2 million from a year ago, a 42.4% decrease,
as a result of the continued workout progress that has been made on
exiting acquired problem loans.
Average transaction deposits and client repurchase agreements
totaled $2.5 billion during 2014 and
increased $37.1 million from 2013, or
1.5%, and were led by a $40.6
million, or 6.1%, increase in average demand deposits as a
result of our strategic focus on relationship banking. Total
deposits and client repurchase agreements averaged $3.9 billion during 2014, decreasing $148.9 million from the prior year. The
decrease was primarily due to a $186.0
million decline in average time deposits as we continued to
focus our deposit base on clients who were interested in
market-rate time deposits and in developing a banking relationship,
coupled with the California
banking center and limited-service retirement center exits on
December 31, 2013. The mix of
transaction deposits to total deposits improved to 64.0% at
December 31, 2014 from 61.0% at December 31, 2013. Additionally, the
average cost of total deposits declined four basis points to 0.37%
in 2014 from 0.41% during 2013.
Provision for loan loss expense was $6.2
million during 2014, compared to $4.3
million during 2013, an increase of $1.9 million. The increase in provision was
primarily due to loan growth as credit quality remained excellent
and non 310-30 net charge-offs were significantly lower at only
0.06% during 2014 compared to 0.27% during 2013.
Non-interest income was a negative $1.7
million in 2014 compared to income of $20.2 million in 2013, a decrease of $21.9 million. The decrease was largely due
to $20.5 million lower FDIC
loss-share related income. An additional $8.8 million of non-cash FDIC indemnification
asset amortization and an $11.7
million decline in other FDIC loss-sharing income from the
same period in 2013 was due to better performance of the underlying
covered assets coupled with lower problem loan and OREO
expenses. Banking fees of $30.4
million during 2014 were up $0.2
million compared to the same period in 2013 as a result of
increases in bank card fees, swap fees and bank owned life
insurance income and were somewhat offset by a decrease in service
charges.
Non-interest expense totaled $150.0
million in 2014 compared to $184.0
million during 2013, a decrease of $34.0 million, or 18.5%. Operating expenses
of $150.7 million during 2014
decreased $12.4 million from
2013. The 7.6% year-over-year decrease in operating expenses
was primarily due to lower salaries and benefits of $7.2 million as we continue to focus on
operational efficiencies. OREO and problem loan expenses
declined $18.5 million and were
driven by $6.2 million higher net
gains on OREO sales coupled with lower levels of OREO and problem
loan expenses of $12.3 million.
2014 included a $4.1 million contract
termination accrual related to a change in our core system provider
and 2013 included $3.4 million of
expenses related to banking center closures. The change in
the warrant liability contributed $3.8
million to the year-over-year decline in non-interest
expenses.
Conference Call
Management will host a conference call to review the results at
11:00 a.m. Eastern Time on
Friday, January 30, 2015.
Interested parties may listen to this call by dialing (877)
272-6762 (United States)/(615)
800-6832 (International) using the Conference ID of 40552925 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 13,
2015, by dialing (855) 859-2056 (United States)/(404) 537-3406 (International)
using the Conference ID of 40552925. The earnings release and
an on-line replay of the call will also be available on the
Company's website at www.nationalbankholdings.com by visiting the
investor relations area.
About Non-GAAP Financial Measures
Certain of the financial measures and ratios we present, including
"tangible assets," "return on average tangible assets," "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," "fully taxable
equivalent" metrics, "adjusted net income," "adjusted basic
earnings per share," "adjusted diluted earnings per share," and
"adjusted return on average tangible assets," 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 are presented for supplemental
informational purposes only and should not be considered a
substitute for financial information presented in accordance with
GAAP. The non-GAAP financial measures we present may differ from
non-GAAP financial measures used by our peers or other companies.
In particular, the items that we exclude in our adjustments are not
necessarily consistent with the items that our peers may exclude
from their results of operations and key financial measures and
therefore may limit the comparability of similarly named financial
measures and ratios. 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 97 banking
centers located in Colorado, the
greater Kansas City region and
Texas. Through the Company's
subsidiary, NBH Bank, N.A., 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.
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 additional 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 consumer spending,
borrowings and savings habits; the Company's ability to identify
potential candidates for, consummate, integrate and realize
operating efficiencies from, acquisitions; the Company's ability to
successfully convert core operating systems, at the estimated cost,
without significant business interruption and to realize the
anticipated benefits; 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
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FINANCIAL
SUMMARY
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Consolidated
Statements of Operations (Unaudited)
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(Dollars in
thousands, except share and per share data)
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For the three
months ended
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For the years
ended
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December
31,
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September
30,
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December
31,
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December
31,
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December
31,
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2014
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2014
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2013
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2014
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2013
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Total interest and
dividend income
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$
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46,280
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$
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45,492
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$
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47,377
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$
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184,662
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$
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195,475
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Total interest
expense
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3,696
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3,597
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3,787
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14,413
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16,514
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Net interest income
before provision for loan losses
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42,584
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41,895
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43,590
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170,249
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178,961
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|
Provision for loan
losses on 310-30 loans
|
(185)
|
|
|
(191)
|
|
|
(230)
|
|
|
(520)
|
|
|
769
|
|
Provision for loan
losses on non 310-30 loans
|
1,450
|
|
|
1,706
|
|
|
1,002
|
|
|
6,729
|
|
|
3,527
|
|
Net interest income
after provision for loan losses
|
41,319
|
|
|
40,380
|
|
|
42,818
|
|
|
164,040
|
|
|
174,665
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FDIC indemnification
asset amortization
|
(7,922)
|
|
|
(6,252)
|
|
|
(7,117)
|
|
|
(27,741)
|
|
|
(18,960)
|
|
Other FDIC
loss-sharing income (expense)
|
(6,313)
|
|
|
(943)
|
|
|
(467)
|
|
|
(8,862)
|
|
|
2,811
|
|
Service
charges
|
3,872
|
|
|
4,148
|
|
|
4,011
|
|
|
15,430
|
|
|
15,955
|
|
Bank card
fees
|
2,575
|
|
|
2,615
|
|
|
2,447
|
|
|
10,123
|
|
|
9,956
|
|
Gain on sale of
mortgages, net
|
326
|
|
|
264
|
|
|
233
|
|
|
1,000
|
|
|
1,358
|
|
Other non-interest
income
|
1,253
|
|
|
836
|
|
|
932
|
|
|
3,810
|
|
|
2,901
|
|
Gain on previously
charged-off acquired loans
|
62
|
|
|
147
|
|
|
221
|
|
|
737
|
|
|
1,339
|
|
OREO related
write-ups and other income
|
1,030
|
|
|
799
|
|
|
2,104
|
|
|
3,807
|
|
|
4,817
|
|
Total
non-interest income (expense)
|
(5,117)
|
|
|
1,614
|
|
|
2,364
|
|
|
(1,696)
|
|
|
20,177
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits
|
20,574
|
|
|
21,058
|
|
|
20,639
|
|
|
82,834
|
|
|
90,002
|
|
Occupancy and
equipment
|
6,263
|
|
|
6,155
|
|
|
6,309
|
|
|
25,101
|
|
|
24,700
|
|
Professional
fees
|
1,077
|
|
|
854
|
|
|
689
|
|
|
3,257
|
|
|
3,734
|
|
Other non-interest
expense
|
8,539
|
|
|
7,973
|
|
|
10,017
|
|
|
34,178
|
|
|
39,373
|
|
(Gain) loss from the
change in fair value of warrant liability
|
(219)
|
|
|
(1,256)
|
|
|
682
|
|
|
(2,953)
|
|
|
820
|
|
Intangible asset
amortization
|
1,336
|
|
|
1,336
|
|
|
1,337
|
|
|
5,344
|
|
|
5,346
|
|
Other real estate
owned expenses (income)
|
(8,979)
|
|
|
594
|
|
|
3,282
|
|
|
(5,350)
|
|
|
10,957
|
|
Problem loan
expenses
|
448
|
|
|
1,267
|
|
|
1,283
|
|
|
3,482
|
|
|
5,644
|
|
Contract termination
expenses
|
4,110
|
|
|
—
|
|
|
—
|
|
|
4,110
|
|
|
—
|
|
Banking center
closure related expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,389
|
|
Total
non-interest expense
|
33,149
|
|
|
37,981
|
|
|
44,238
|
|
|
150,003
|
|
|
183,965
|
|
Income before income
taxes
|
3,053
|
|
|
4,013
|
|
|
944
|
|
|
12,341
|
|
|
10,877
|
|
Income tax expense
(benefit)
|
774
|
|
|
676
|
|
|
(56)
|
|
|
3,165
|
|
|
3,950
|
|
Net income
|
$
|
2,279
|
|
|
$
|
3,337
|
|
|
$
|
1,000
|
|
|
$
|
9,176
|
|
|
$
|
6,927
|
|
Income per share -
basic
|
$
|
0.06
|
|
|
$
|
0.08
|
|
|
$
|
0.02
|
|
|
$
|
0.22
|
|
|
$
|
0.14
|
|
Income per share -
diluted
|
$
|
0.06
|
|
|
$
|
0.08
|
|
|
$
|
0.02
|
|
|
$
|
0.22
|
|
|
$
|
0.14
|
|
NATIONAL BANK
HOLDINGS CORPORATION
|
|
|
|
|
|
|
Consolidated
Statements of Condition (Unaudited)
|
|
|
|
|
|
|
(Dollars in
thousands, except share and per share data)
|
|
|
|
|
|
|
|
December 31,
2014
|
|
September 30,
2014
|
|
December 31,
2013
|
ASSETS
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
256,979
|
|
|
$
|
118,659
|
|
|
$
|
189,460
|
|
Investment securities
available-for-sale
|
1,479,214
|
|
|
1,553,641
|
|
|
1,785,528
|
|
Investment securities
held-to-maturity
|
530,590
|
|
|
557,464
|
|
|
641,907
|
|
Non-marketable
securities
|
27,045
|
|
|
21,640
|
|
|
31,663
|
|
Loans receivable,
net
|
2,162,409
|
|
|
2,171,372
|
|
|
1,854,094
|
|
Allowance for
loan losses
|
(17,613)
|
|
|
(16,591)
|
|
|
(12,521)
|
|
Loans, net
|
2,144,796
|
|
|
2,154,781
|
|
|
1,841,573
|
|
Loans held for
sale
|
5,146
|
|
|
5,252
|
|
|
5,787
|
|
FDIC indemnification
asset, net
|
39,082
|
|
|
44,413
|
|
|
64,447
|
|
Other real estate
owned
|
29,120
|
|
|
45,885
|
|
|
70,125
|
|
Premises and
equipment, net
|
106,341
|
|
|
108,100
|
|
|
115,219
|
|
Goodwill
|
59,630
|
|
|
59,630
|
|
|
59,630
|
|
Intangible assets,
net
|
16,883
|
|
|
18,220
|
|
|
22,229
|
|
Other
assets
|
124,820
|
|
|
125,122
|
|
|
86,547
|
|
Total
assets
|
$
|
4,819,646
|
|
|
$
|
4,812,807
|
|
|
$
|
4,914,115
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
Non-interest bearing
demand deposits
|
$
|
732,580
|
|
|
$
|
724,186
|
|
|
$
|
674,989
|
|
Interest bearing
demand deposits
|
386,121
|
|
|
369,917
|
|
|
386,762
|
|
Savings and money
market
|
1,290,436
|
|
|
1,307,285
|
|
|
1,280,871
|
|
Total
transaction deposits
|
2,409,137
|
|
|
2,401,388
|
|
|
2,342,622
|
|
Time
deposits
|
1,357,051
|
|
|
1,396,070
|
|
|
1,495,687
|
|
Total
deposits
|
3,766,188
|
|
|
3,797,458
|
|
|
3,838,309
|
|
Securities sold under
agreements to repurchase
|
133,552
|
|
|
109,946
|
|
|
99,547
|
|
Federal Home Loan
Bank advances
|
40,000
|
|
|
—
|
|
|
—
|
|
Other
liabilities
|
85,331
|
|
|
96,441
|
|
|
78,467
|
|
Total
liabilities
|
4,025,071
|
|
|
4,003,845
|
|
|
4,016,323
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
Common
stock
|
512
|
|
|
512
|
|
|
512
|
|
Additional paid in
capital
|
993,212
|
|
|
992,587
|
|
|
990,216
|
|
Retained
earnings
|
40,528
|
|
|
40,197
|
|
|
39,966
|
|
Treasury
stock
|
(245,516)
|
|
|
(226,230)
|
|
|
(126,146)
|
|
Accumulated other
comprehensive income (loss), net of tax
|
5,839
|
|
|
1,896
|
|
|
(6,756)
|
|
Total
shareholders' equity
|
794,575
|
|
|
808,962
|
|
|
897,792
|
|
Total
liabilities and shareholders' equity
|
$
|
4,819,646
|
|
|
$
|
4,812,807
|
|
|
$
|
4,914,115
|
|
SHARE
DATA
|
|
|
|
|
|
|
|
|
Average basic shares
outstanding
|
39,439,646
|
|
|
41,837,485
|
|
|
47,378,400
|
|
Average diluted
shares outstanding
|
39,444,330
|
|
|
41,841,685
|
|
|
47,494,341
|
|
Ending shares
outstanding
|
38,884,953
|
|
|
39,862,824
|
|
|
44,918,336
|
|
Common book value per
share
|
$
|
20.43
|
|
|
$
|
20.29
|
|
|
$
|
19.99
|
|
Tangible common book
value per share (1)
|
$
|
18.63
|
|
|
$
|
18.49
|
|
|
$
|
18.27
|
|
Tangible common book
value per share, excluding accumulated other comprehensive income
(loss) (1)
|
$
|
18.48
|
|
|
$
|
18.44
|
|
|
$
|
18.42
|
|
CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
Average equity to
average assets
|
16.75
|
%
|
|
17.50
|
%
|
|
19.02
|
%
|
Tangible common
equity to tangible assets (1)
|
15.25
|
%
|
|
15.54
|
%
|
|
16.97
|
%
|
Leverage
ratio
|
14.98
|
%
|
|
15.23
|
%
|
|
16.63
|
%
|
(1)
|
Represents a non-GAAP
financial measure. See non-GAAP reconciliations.
|
NATIONAL BANK
HOLDINGS CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Portfolio
Update
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounting
Treatment and Loss-Share Coverage Period End Loan
Balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2014
|
|
September 30,
2014
|
|
December 31,
2013
|
|
ASC 310-
30 Loans
|
|
Non 310-30
Loans
|
|
Total
Loans
|
|
ASC 310-
30 Loans
|
|
Non 310-30
Loans
|
|
Total
Loans
|
|
ASC 310-
30 Loans
|
|
Non 310-30
Loans
|
|
Total
Loans
|
Commercial
|
$
|
22,956
|
|
|
$
|
772,440
|
|
|
$
|
795,396
|
|
|
$
|
37,665
|
|
|
$
|
717,507
|
|
|
$
|
755,172
|
|
|
$
|
61,511
|
|
|
$
|
421,984
|
|
|
$
|
483,495
|
|
Agriculture
|
19,063
|
|
|
118,468
|
|
|
137,531
|
|
|
20,071
|
|
|
142,801
|
|
|
162,872
|
|
|
27,000
|
|
|
132,952
|
|
|
159,952
|
|
Commercial real
estate
|
192,330
|
|
|
369,264
|
|
|
561,594
|
|
|
213,871
|
|
|
380,445
|
|
|
594,316
|
|
|
291,198
|
|
|
283,022
|
|
|
574,220
|
|
Residential real
estate
|
40,761
|
|
|
591,939
|
|
|
632,700
|
|
|
43,979
|
|
|
579,420
|
|
|
623,399
|
|
|
63,011
|
|
|
536,913
|
|
|
599,924
|
|
Consumer
|
4,535
|
|
|
30,653
|
|
|
35,188
|
|
|
5,007
|
|
|
30,606
|
|
|
35,613
|
|
|
8,160
|
|
|
28,343
|
|
|
36,503
|
|
Total
|
$
|
279,645
|
|
|
$
|
1,882,764
|
|
|
$
|
2,162,409
|
|
|
$
|
320,593
|
|
|
$
|
1,850,779
|
|
|
$
|
2,171,372
|
|
|
$
|
450,880
|
|
|
$
|
1,403,214
|
|
|
$
|
1,854,094
|
|
Covered
|
$
|
160,876
|
|
|
$
|
32,821
|
|
|
$
|
193,697
|
|
|
$
|
183,486
|
|
|
$
|
35,982
|
|
|
$
|
219,468
|
|
|
$
|
259,364
|
|
|
$
|
50,033
|
|
|
$
|
309,397
|
|
Non-covered
|
118,769
|
|
|
1,849,943
|
|
|
1,968,712
|
|
|
137,107
|
|
|
1,814,797
|
|
|
1,951,904
|
|
|
191,516
|
|
|
1,353,181
|
|
|
1,544,697
|
|
Total
|
$
|
279,645
|
|
|
$
|
1,882,764
|
|
|
$
|
2,162,409
|
|
|
$
|
320,593
|
|
|
$
|
1,850,779
|
|
|
$
|
2,171,372
|
|
|
$
|
450,880
|
|
|
$
|
1,403,214
|
|
|
$
|
1,854,094
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Strategic/Non-Strategic Period-End Loan
Balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2014
|
|
September 30,
2014
|
|
December 31,
2013
|
|
Strategic
|
|
Non-
strategic
|
|
Total
|
|
Strategic
|
|
Non-
strategic
|
|
Total
|
|
Strategic
|
|
Non-
strategic
|
|
Total
|
Commercial
|
$
|
765,114
|
|
|
$
|
30,282
|
|
|
$
|
795,396
|
|
|
$
|
707,999
|
|
|
$
|
47,173
|
|
|
$
|
755,172
|
|
|
$
|
411,589
|
|
|
$
|
71,906
|
|
|
$
|
483,495
|
|
Agriculture
|
135,559
|
|
|
1,972
|
|
|
137,531
|
|
|
160,851
|
|
|
2,021
|
|
|
162,872
|
|
|
154,811
|
|
|
5,141
|
|
|
159,952
|
|
Owner-occupied
commercial real estate
|
140,729
|
|
|
19,228
|
|
|
159,957
|
|
|
144,223
|
|
|
19,988
|
|
|
164,211
|
|
|
123,386
|
|
|
30,306
|
|
|
153,692
|
|
Commercial real
estate
|
275,311
|
|
|
126,326
|
|
|
401,637
|
|
|
273,949
|
|
|
156,156
|
|
|
430,105
|
|
|
210,265
|
|
|
210,263
|
|
|
420,528
|
|
Residential real
estate
|
610,583
|
|
|
22,117
|
|
|
632,700
|
|
|
599,523
|
|
|
23,876
|
|
|
623,399
|
|
|
570,455
|
|
|
29,469
|
|
|
599,924
|
|
Consumer
|
33,371
|
|
|
1,817
|
|
|
35,188
|
|
|
33,640
|
|
|
1,973
|
|
|
35,613
|
|
|
33,599
|
|
|
2,904
|
|
|
36,503
|
|
Total
|
$
|
1,960,667
|
|
|
$
|
201,742
|
|
|
$
|
2,162,409
|
|
|
$
|
1,920,185
|
|
|
$
|
251,187
|
|
|
$
|
2,171,372
|
|
|
$
|
1,504,105
|
|
|
$
|
349,989
|
|
|
$
|
1,854,094
|
|
Originations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|
Fourth
|
|
quarter
|
|
quarter
|
|
quarter
|
|
quarter
|
|
quarter
|
|
2014
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
Commercial
|
$
|
102,732
|
|
|
$
|
110,083
|
|
|
$
|
133,671
|
|
|
$
|
130,096
|
|
|
$
|
159,931
|
|
Agriculture
|
4,952
|
|
|
7,014
|
|
|
10,288
|
|
|
4,959
|
|
|
23,610
|
|
Owner-occupied
commercial real estate
|
11,139
|
|
|
10,293
|
|
|
28,803
|
|
|
21,002
|
|
|
6,380
|
|
Commercial real
estate
|
27,617
|
|
|
33,817
|
|
|
45,903
|
|
|
29,633
|
|
|
14,579
|
|
Residential real
estate
|
31,680
|
|
|
35,404
|
|
|
44,539
|
|
|
27,812
|
|
|
36,113
|
|
Consumer
|
4,111
|
|
|
6,678
|
|
|
3,556
|
|
|
3,461
|
|
|
3,594
|
|
Total
|
$
|
182,231
|
|
|
$
|
203,289
|
|
|
$
|
266,760
|
|
|
$
|
216,963
|
|
|
$
|
244,207
|
|
NATIONAL BANK
HOLDINGS CORPORATION
|
Summary of Net
Interest Margin (Fully taxable equivalent adjusted)
|
(Dollars in
thousands)
|
|
|
|
Three months
ended
December 31,
2014
|
|
Three months
ended
September 30,
2014
|
|
Three months
ended
December 31,
2013
|
|
|
Average
|
|
|
|
|
Average
|
|
Average
|
|
|
|
|
Average
|
|
Average
|
|
|
|
|
Average
|
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
Interest earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASC 310-30
loans
|
$
|
295,308
|
|
|
$
|
14,195
|
|
|
19.23
|
%
|
|
$
|
341,405
|
|
|
$
|
14,368
|
|
|
16.83
|
%
|
|
$
|
475,562
|
|
|
$
|
17,045
|
|
|
14.34
|
%
|
Non 310-30
loans(1)(2)(3)(4)
|
1,879,779
|
|
|
20,897
|
|
|
4.41
|
%
|
|
1,767,106
|
|
|
19,266
|
|
|
4.33
|
%
|
|
1,310,450
|
|
|
16,220
|
|
|
4.91
|
%
|
Investment securities
available-for-sale
|
1,529,101
|
|
|
7,273
|
|
|
1.90
|
%
|
|
1,614,621
|
|
|
7,693
|
|
|
1.91
|
%
|
|
1,864,960
|
|
|
8,886
|
|
|
1.91
|
%
|
Investment securities
held-to-maturity
|
545,735
|
|
|
3,855
|
|
|
2.83
|
%
|
|
575,289
|
|
|
4,056
|
|
|
2.82
|
%
|
|
655,805
|
|
|
4,676
|
|
|
2.85
|
%
|
Other
securities
|
26,997
|
|
|
302
|
|
|
4.47
|
%
|
|
21,649
|
|
|
245
|
|
|
4.53
|
%
|
|
31,700
|
|
|
389
|
|
|
4.91
|
%
|
Interest earning
deposits and securities purchased under agreements to
resell
|
118,171
|
|
|
78
|
|
|
0.26
|
%
|
|
133,752
|
|
|
95
|
|
|
0.28
|
%
|
|
234,739
|
|
|
161
|
|
|
0.27
|
%
|
Total interest
earning assets(4)
|
$
|
4,395,091
|
|
|
$
|
46,600
|
|
|
4.21
|
%
|
|
$
|
4,453,822
|
|
|
$
|
45,723
|
|
|
4.07
|
%
|
|
$
|
4,573,216
|
|
|
$
|
47,377
|
|
|
4.11
|
%
|
Cash and due from
banks
|
57,031
|
|
|
|
|
|
|
|
|
57,056
|
|
|
|
|
|
|
|
|
60,961
|
|
|
|
|
|
|
|
Other
assets
|
391,582
|
|
|
|
|
|
|
|
|
360,532
|
|
|
|
|
|
|
|
|
391,974
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
(17,260)
|
|
|
|
|
|
|
|
|
(16,601)
|
|
|
|
|
|
|
|
|
(11,977)
|
|
|
|
|
|
|
|
Total
assets
|
$
|
4,826,444
|
|
|
|
|
|
|
|
|
$
|
4,854,809
|
|
|
|
|
|
|
|
|
$
|
5,014,174
|
|
|
|
|
|
|
|
Interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
demand, savings and money market deposits
|
$
|
1,677,494
|
|
|
$
|
1,075
|
|
|
0.25
|
%
|
|
$
|
1,689,692
|
|
|
$
|
1,092
|
|
|
0.26
|
%
|
|
$
|
1,667,653
|
|
|
$
|
1,031
|
|
|
0.25
|
%
|
Time
deposits
|
1,375,779
|
|
|
2,420
|
|
|
0.70
|
%
|
|
1,412,916
|
|
|
2,471
|
|
|
0.69
|
%
|
|
1,544,223
|
|
|
2,715
|
|
|
0.70
|
%
|
Securities sold under
agreements to repurchase
|
113,993
|
|
|
37
|
|
|
0.13
|
%
|
|
104,020
|
|
|
34
|
|
|
0.13
|
%
|
|
107,985
|
|
|
41
|
|
|
0.15
|
%
|
Federal Home Loan
Bank advances
|
39,565
|
|
|
164
|
|
|
1.64
|
%
|
|
—
|
|
|
—
|
|
|
0.00
|
%
|
|
—
|
|
|
—
|
|
|
0.00
|
%
|
Total interest
bearing liabilities
|
$
|
3,206,831
|
|
|
$
|
3,696
|
|
|
0.46
|
%
|
|
$
|
3,206,628
|
|
|
$
|
3,597
|
|
|
0.44
|
%
|
|
$
|
3,319,861
|
|
|
$
|
3,787
|
|
|
0.45
|
%
|
Demand
deposits
|
728,345
|
|
|
|
|
|
|
|
|
715,198
|
|
|
|
|
|
|
|
|
676,959
|
|
|
|
|
|
|
|
Other
liabilities
|
82,632
|
|
|
|
|
|
|
|
|
83,632
|
|
|
|
|
|
|
|
|
63,518
|
|
|
|
|
|
|
|
Total
liabilities
|
4,017,808
|
|
|
|
|
|
|
|
|
4,005,458
|
|
|
|
|
|
|
|
|
4,060,338
|
|
|
|
|
|
|
|
Shareholders'
equity
|
808,636
|
|
|
|
|
|
|
|
|
849,351
|
|
|
|
|
|
|
|
|
953,836
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
4,826,444
|
|
|
|
|
|
|
|
|
$
|
4,854,809
|
|
|
|
|
|
|
|
|
$
|
5,014,174
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
$
|
42,904
|
|
|
|
|
|
|
|
|
$
|
42,126
|
|
|
|
|
|
|
|
|
$
|
43,590
|
|
|
|
|
Interest rate
spread
|
|
|
|
|
|
|
3.75
|
%
|
|
|
|
|
|
|
|
3.63
|
%
|
|
|
|
|
|
|
|
3.66
|
%
|
Net interest earning
assets
|
$
|
1,188,260
|
|
|
|
|
|
|
|
|
$
|
1,247,194
|
|
|
|
|
|
|
|
|
$
|
1,253,355
|
|
|
|
|
|
|
|
Net interest
margin(4)
|
|
|
|
|
|
|
3.87
|
%
|
|
|
|
|
|
|
|
3.75
|
%
|
|
|
|
|
|
|
|
3.78
|
%
|
Ratio of average
interest earning assets to average interest bearing
liabilities
|
137.05
|
%
|
|
|
|
|
|
|
|
138.89
|
%
|
|
|
|
|
|
|
|
137.75
|
%
|
|
|
|
|
|
|
|
|
(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 $1.6 billion, $1.5 billion and
$972.3 million, and interest income of $17.1 million, $15.4 million
and $10.7 million, with yields of 4.16%, 4.07% and 4.39% for the
three months ended December 31, 2014, September 30, 2014 and
December 31, 2013, respectively.
|
(3)
|
Non 310-30 loans
include loans held-for-sale. Average balances during the
three months ended December 31, 2014, September 30, 2014 and
December 31, 2013 were $3.6 million, $3.8 million and $2.8 million,
and interest income was $83 thousand, $81 thousand and $67 thousand
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 $320 thousand,
$231 thousand and $0 for the three months ended December 31, 2014,
September 30, 2014 and December 31, 2013, respectively.
|
NATIONAL BANK
HOLDINGS CORPORATION
|
Summary of Net
Interest Margin (Fully taxable equivalent adjusted)
|
(Dollars in
thousands)
|
|
|
|
For the year ended
December 31, 2014
|
|
For the year ended
December 31, 2013
|
|
|
Average
|
|
|
|
|
Average
|
|
Average
|
|
|
|
|
Average
|
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
Interest earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASC 310-30
loans
|
$
|
361,806
|
|
|
$
|
60,841
|
|
|
16.82
|
%
|
|
$
|
620,709
|
|
|
$
|
76,661
|
|
|
12.35
|
%
|
Non 310-30
loans(1)(2)(3)(4)
|
1,691,253
|
|
|
74,565
|
|
|
4.41
|
%
|
|
1,133,895
|
|
|
62,387
|
|
|
5.50
|
%
|
Investment securities
available-for-sale
|
1,655,730
|
|
|
31,887
|
|
|
1.93
|
%
|
|
1,951,039
|
|
|
35,460
|
|
|
1.82
|
%
|
Investment securities
held-to-maturity
|
588,909
|
|
|
16,764
|
|
|
2.85
|
%
|
|
597,920
|
|
|
18,485
|
|
|
3.09
|
%
|
Other
securities
|
25,855
|
|
|
1,206
|
|
|
4.66
|
%
|
|
32,135
|
|
|
1,559
|
|
|
4.85
|
%
|
Interest earning
deposits and securities purchased under agreements to
resell
|
123,350
|
|
|
329
|
|
|
0.27
|
%
|
|
362,854
|
|
|
923
|
|
|
0.25
|
%
|
Total interest
earning assets(4)
|
$
|
4,446,903
|
|
|
$
|
185,592
|
|
|
4.17
|
%
|
|
$
|
4,698,552
|
|
|
$
|
195,475
|
|
|
4.16
|
%
|
Cash and due from
banks
|
57,763
|
|
|
|
|
|
|
|
|
60,922
|
|
|
|
|
|
|
|
Other
assets
|
378,723
|
|
|
|
|
|
|
|
|
428,426
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
(15,460)
|
|
|
|
|
|
|
|
|
(12,690)
|
|
|
|
|
|
|
|
Total
assets
|
$
|
4,867,929
|
|
|
|
|
|
|
|
|
$
|
5,175,210
|
|
|
|
|
|
|
|
Interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
demand, savings and money market deposits
|
$
|
1,701,344
|
|
|
$
|
4,323
|
|
|
0.25
|
%
|
|
$
|
1,719,507
|
|
|
$
|
4,271
|
|
|
0.25
|
%
|
Time
deposits
|
1,421,726
|
|
|
9,797
|
|
|
0.69
|
%
|
|
1,607,676
|
|
|
12,122
|
|
|
0.75
|
%
|
Securities sold under
agreements to repurchase
|
99,057
|
|
|
129
|
|
|
0.13
|
%
|
|
84,354
|
|
|
121
|
|
|
0.14
|
%
|
Federal Home Loan
Bank advances
|
9,975
|
|
|
164
|
|
|
1.64
|
%
|
|
—
|
|
|
—
|
|
|
0.00
|
%
|
Total interest
bearing liabilities
|
$
|
3,232,102
|
|
|
$
|
14,413
|
|
|
0.45
|
%
|
|
$
|
3,411,537
|
|
|
$
|
16,514
|
|
|
0.48
|
%
|
Demand
deposits
|
700,809
|
|
|
|
|
|
|
|
|
660,254
|
|
|
|
|
|
|
|
Other
liabilities
|
74,327
|
|
|
|
|
|
|
|
|
64,666
|
|
|
|
|
|
|
|
Total
liabilities
|
4,007,238
|
|
|
|
|
|
|
|
|
4,136,457
|
|
|
|
|
|
|
|
Shareholders'
equity
|
860,691
|
|
|
|
|
|
|
|
|
1,038,753
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
4,867,929
|
|
|
|
|
|
|
|
|
$
|
5,175,210
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
$
|
171,179
|
|
|
|
|
|
|
|
|
$
|
178,961
|
|
|
|
|
Interest rate
spread
|
|
|
|
|
|
|
3.72
|
%
|
|
|
|
|
|
|
|
3.68
|
%
|
Net interest earning
assets
|
$
|
1,214,801
|
|
|
|
|
|
|
|
|
$
|
1,287,015
|
|
|
|
|
|
|
|
Net interest
margin(4)
|
|
|
|
|
|
|
3.85
|
%
|
|
|
|
|
|
|
|
3.81
|
%
|
Ratio of average
interest earning assets to average interest bearing
liabilities
|
137.59
|
%
|
|
|
|
|
|
|
|
137.73
|
%
|
|
|
|
|
|
|
|
|
(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 $1.4 billion and $734.0 million, and
interest income of $58.1 million and $33.6 million, with yields of
4.10% and 4.57% for the 2014 and 2013, respectively.
|
(3)
|
Non 310-30 loans
include loans held-for-sale. Average balances during 2014 and
2013 were $3.1 million and $5.4 million, and interest income was
$267 thousand and $329 thousand 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 $930 thousand and
$0 for 2014 and 2013, respectively.
|
NATIONAL BANK
HOLDINGS CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance For Loan
Losses Analysis (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the
three months ended:
|
|
December 31,
2014
|
|
September 30,
2014
|
|
December 31,
2013
|
|
ASC 310-
30
|
|
Non
310-30
|
|
Total
|
|
ASC 310-
30
|
|
Non 310-30
|
|
Total
|
|
ASC 310-
30
|
|
Non 310-30
|
|
Total
|
Beginning allowance
for loan losses
|
$
|
907
|
|
|
$
|
15,684
|
|
|
$
|
16,591
|
|
|
$
|
1,098
|
|
|
$
|
14,474
|
|
|
$
|
15,572
|
|
|
$
|
1,604
|
|
|
$
|
9,815
|
|
|
$
|
11,419
|
|
Net
charge-offs
|
(1)
|
|
|
(242)
|
|
|
(243)
|
|
|
—
|
|
|
(496)
|
|
|
(496)
|
|
|
(94)
|
|
|
424
|
|
|
330
|
|
Provision
(recoupment)/expense
|
(185)
|
|
|
1,450
|
|
|
1,265
|
|
|
(191)
|
|
|
1,706
|
|
|
1,515
|
|
|
(230)
|
|
|
1,002
|
|
|
772
|
|
Ending allowance for
loan losses
|
$
|
721
|
|
|
$
|
16,892
|
|
|
$
|
17,613
|
|
|
$
|
907
|
|
|
$
|
15,684
|
|
|
$
|
16,591
|
|
|
$
|
1,280
|
|
|
$
|
11,241
|
|
|
$
|
12,521
|
|
Ratio of annualized
net charge-offs to average total loans during the period,
respectively
|
|
0.00
|
%
|
|
|
0.05
|
%
|
|
|
0.04
|
%
|
|
|
0.00
|
%
|
|
|
0.11
|
%
|
|
|
0.09
|
%
|
|
|
0.08
|
%
|
|
|
(0.13)
|
%
|
|
|
(0.07)
|
%
|
Ratio of allowance
for loan losses to total loans outstanding at period end,
respectively
|
|
0.26
|
%
|
|
|
0.90
|
%
|
|
|
0.81
|
%
|
|
|
0.28
|
%
|
|
|
0.85
|
%
|
|
|
0.76
|
%
|
|
|
0.28
|
%
|
|
|
0.80
|
%
|
|
|
0.68
|
%
|
Ratio of allowance
for loan losses to total non-performing loans at period end,
respectively
|
|
0.00
|
%
|
|
|
156.22
|
%
|
|
|
162.89
|
%
|
|
|
0.00
|
%
|
|
|
82.83
|
%
|
|
|
87.62
|
%
|
|
|
8.63
|
%
|
|
|
118.11
|
%
|
|
|
51.43
|
%
|
Total
loans
|
$
|
279,645
|
|
|
$
|
1,882,764
|
|
|
$
|
2,162,409
|
|
|
$
|
320,593
|
|
|
$
|
1,850,779
|
|
|
$
|
2,171,372
|
|
|
$
|
450,880
|
|
|
$
|
1,403,214
|
|
|
$
|
1,854,094
|
|
Average total loans
during the period
|
$
|
295,308
|
|
|
$
|
1,876,203
|
|
|
$
|
2,171,511
|
|
|
$
|
341,405
|
|
|
$
|
1,763,279
|
|
|
$
|
2,104,684
|
|
|
$
|
475,562
|
|
|
$
|
1,307,631
|
|
|
$
|
1,783,193
|
|
Total non-performing
loans(2)
|
$
|
—
|
|
|
$
|
10,813
|
|
|
$
|
10,813
|
|
|
$
|
—
|
|
|
$
|
18,936
|
|
|
$
|
18,936
|
|
|
$
|
14,827
|
|
|
$
|
9,517
|
|
|
$
|
24,344
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Past Due
Loans(1):
|
|
|
December 31,
2014
|
|
September 30,
2014
|
|
December 31,
2013
|
|
ASC 310-30
Loans
|
|
Non 310-30
Loans
|
|
Total
|
|
ASC 310-30
Loans
|
|
Non 310-30
Loans
|
|
Total
|
|
ASC 310-30
Loans
|
|
Non 310-30
Loans
|
|
Total
|
Non-accrual
loans
|
$
|
—
|
|
|
$
|
3,840
|
|
|
$
|
3,840
|
|
|
$
|
—
|
|
|
$
|
15,272
|
|
|
$
|
15,272
|
|
|
$
|
14,827
|
|
|
$
|
5,943
|
|
|
$
|
20,770
|
|
Restructured loans on
non-accrual
|
—
|
|
|
6,973
|
|
|
6,973
|
|
|
—
|
|
|
3,664
|
|
|
3,664
|
|
|
—
|
|
|
3,574
|
|
|
3,574
|
|
Loans 30-89 days past
due and still accruing interest
|
7,016
|
|
|
1,142
|
|
|
8,158
|
|
|
30,761
|
|
|
5,452
|
|
|
36,213
|
|
|
11,245
|
|
|
2,854
|
|
|
14,099
|
|
Loans 90 days past
due and still accruing interest
|
33,834
|
|
|
263
|
|
|
34,097
|
|
|
42,930
|
|
|
225
|
|
|
43,155
|
|
|
55,864
|
|
|
129
|
|
|
55,993
|
|
Total past due and
non-accrual loans
|
$
|
40,850
|
|
|
$
|
12,218
|
|
|
$
|
53,068
|
|
|
$
|
73,691
|
|
|
$
|
24,613
|
|
|
$
|
98,304
|
|
|
$
|
81,936
|
|
|
$
|
12,500
|
|
|
$
|
94,436
|
|
Total 90 days past
due and still accruing interest and non-accrual loans to total
loans, respectively
|
12.10
|
%
|
|
0.59
|
%
|
|
2.08
|
%
|
|
13.39
|
%
|
|
1.04
|
%
|
|
2.86
|
%
|
|
15.68
|
%
|
|
0.69
|
%
|
|
4.33
|
%
|
Total non-accrual
loans to total loans, respectively
|
0.00
|
%
|
|
0.57
|
%
|
|
0.50
|
%
|
|
0.00
|
%
|
|
1.02
|
%
|
|
0.87
|
%
|
|
3.29
|
%
|
|
0.68
|
%
|
|
1.31
|
%
|
% of total past due
and non-accrual loans that carry fair value marks
|
100.00
|
%
|
|
34.66
|
%
|
|
84.96
|
%
|
|
100.00
|
%
|
|
27.68
|
%
|
|
81.89
|
%
|
|
100.00
|
%
|
|
52.23
|
%
|
|
93.68
|
%
|
% of total past due
and non-accrual loans that are covered by FDIC loss sharing
agreements, respectively
|
87.41
|
%
|
|
11.39
|
%
|
|
69.91
|
%
|
|
84.23
|
%
|
|
6.55
|
%
|
|
64.78
|
%
|
|
77.63
|
%
|
|
18.27
|
%
|
|
69.77
|
%
|
NATIONAL BANK
HOLDINGS CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Data
(Covered/Non-covered)(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2014
|
|
September 30,
2014
|
|
December 31,
2013
|
|
Non-covered
|
|
Covered
|
|
Total
|
|
Non-covered
|
|
Covered
|
|
Total
|
|
Non-covered
|
|
Covered
|
|
Total
|
Non-accrual
loans
|
$
|
3,729
|
|
|
$
|
111
|
|
|
$
|
3,840
|
|
|
$
|
15,124
|
|
|
$
|
147
|
|
|
$
|
15,271
|
|
|
$
|
5,672
|
|
|
$
|
15,098
|
|
|
$
|
20,770
|
|
Restructured loans on
non-accrual
|
5,767
|
|
|
1,206
|
|
|
6,973
|
|
|
2,272
|
|
|
1,393
|
|
|
3,665
|
|
|
1,901
|
|
|
1,673
|
|
|
3,574
|
|
Total non-performing
loans(2)
|
9,496
|
|
|
1,317
|
|
|
10,813
|
|
|
17,396
|
|
|
1,540
|
|
|
18,936
|
|
|
7,573
|
|
|
16,771
|
|
|
24,344
|
|
OREO
|
10,653
|
|
|
18,467
|
|
|
29,120
|
|
|
15,753
|
|
|
30,132
|
|
|
45,885
|
|
|
31,300
|
|
|
38,825
|
|
|
70,125
|
|
Other repossessed
assets
|
829
|
|
|
20
|
|
|
849
|
|
|
869
|
|
|
20
|
|
|
889
|
|
|
784
|
|
|
302
|
|
|
1,086
|
|
Total non-performing
assets
|
$
|
20,978
|
|
|
$
|
19,804
|
|
|
$
|
40,782
|
|
|
$
|
34,018
|
|
|
$
|
31,692
|
|
|
$
|
65,710
|
|
|
$
|
39,657
|
|
|
$
|
55,898
|
|
|
$
|
95,555
|
|
Loans 90 days or more
past due and still accruing interest
|
$
|
188
|
|
|
$
|
75
|
|
|
$
|
263
|
|
|
$
|
225
|
|
|
$
|
—
|
|
|
$
|
225
|
|
|
$
|
14
|
|
|
$
|
115
|
|
|
$
|
129
|
|
Accruing restructured
loans(3)
|
$
|
9,489
|
|
|
$
|
9,786
|
|
|
$
|
19,275
|
|
|
$
|
15,758
|
|
|
$
|
9,277
|
|
|
$
|
25,035
|
|
|
$
|
5,891
|
|
|
$
|
5,714
|
|
|
$
|
11,605
|
|
Allowance for loan
losses
|
|
|
|
|
|
|
$
|
17,613
|
|
|
|
|
|
|
|
|
$
|
16,591
|
|
|
|
|
|
|
|
|
$
|
12,521
|
|
Total non-performing
loans to total non-covered, total covered, and total
loans, respectively
|
0.48
|
%
|
|
0.68
|
%
|
|
0.50
|
%
|
|
0.89
|
%
|
|
0.70
|
%
|
|
0.87
|
%
|
|
0.49
|
%
|
|
5.42
|
%
|
|
1.31
|
%
|
Loans 90 days or more
past due and still accruing interest to total non-covered loans,
total covered loans, and total loans, respectively
|
0.01
|
%
|
|
0.04
|
%
|
|
0.01
|
%
|
|
0.01
|
%
|
|
0.00
|
%
|
|
0.01
|
%
|
|
0.00
|
%
|
|
0.04
|
%
|
|
0.01
|
%
|
Total non-performing
assets to total assets
|
|
|
|
|
|
|
0.85
|
%
|
|
|
|
|
|
|
|
1.37
|
%
|
|
|
|
|
|
|
|
1.94
|
%
|
Allowance for loan
losses to non-performing loans
|
|
|
|
|
|
|
162.89
|
%
|
|
|
|
|
|
|
|
87.62
|
%
|
|
|
|
|
|
|
|
51.43
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
(2)
|
Non-performing loans
were redefined during the third quarter of 2014 to only include
non-accrual loans and restructured loans on non-accrual. All
previous periods have been restated.
|
(3)
|
Includes restructured
loans less than 90 days past due and still accruing
interest.
|
Changes in
Accretable Yield:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
Life-to-date
|
|
|
|
December 31,
2014
|
|
September
30,
2014
|
|
|
December
31, 2013
|
|
|
December 31,
2014
|
Accretable yield at
beginning of period
|
$
|
113,108
|
|
|
$
|
116,095
|
|
|
$
|
124,086
|
|
|
$
|
—
|
|
Additions through
acquisitions
|
—
|
|
|
—
|
|
|
—
|
|
|
214,994
|
|
Reclassification from
non-accretable difference to accretable yield
|
16,858
|
|
|
11,736
|
|
|
25,343
|
|
|
233,936
|
|
Reclassification to
non-accretable difference from accretable yield
|
(2,308)
|
|
|
(355)
|
|
|
(1,760)
|
|
|
(23,596)
|
|
Accretion
|
(14,195)
|
|
|
(14,368)
|
|
|
(17,045)
|
|
|
(311,871)
|
|
Accretable yield at
end of period
|
$
|
113,463
|
|
|
$
|
113,108
|
|
|
$
|
130,624
|
|
|
$
|
113,463
|
|
NATIONAL BANK
HOLDINGS CORPORATION
|
|
|
|
|
|
|
|
|
|
Key
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
As of and for
the
three months
ended
|
|
As of and for
the
years
ended
|
|
|
December 31,
2014
|
|
September 30,
2014
|
|
December 31,
2013
|
|
December 31,
2014
|
|
December 31,
2013
|
Key
Ratios(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
0.19
|
%
|
|
0.27
|
%
|
|
0.08
|
%
|
|
0.19
|
%
|
|
0.13
|
%
|
Return on average
tangible assets(2)
|
0.26
|
%
|
|
0.34
|
%
|
|
0.15
|
%
|
|
0.26
|
%
|
|
0.20
|
%
|
Return on average
equity
|
1.12
|
%
|
|
1.56
|
%
|
|
0.42
|
%
|
|
1.07
|
%
|
|
0.67
|
%
|
Return on average
tangible common equity(2)
|
1.66
|
%
|
|
2.12
|
%
|
|
0.82
|
%
|
|
1.58
|
%
|
|
1.06
|
%
|
Return on risk
weighted assets
|
0.37
|
%
|
|
0.53
|
%
|
|
0.19
|
%
|
|
0.37
|
%
|
|
0.33
|
%
|
Interest earning
assets to interest bearing liabilities (end of
period)(3)
|
137.36
|
%
|
|
137.71
|
%
|
|
137.05
|
%
|
|
137.36
|
%
|
|
137.05
|
%
|
Loans to deposits
ratio (end of period)
|
57.55
|
%
|
|
57.32
|
%
|
|
48.46
|
%
|
|
57.55
|
%
|
|
48.46
|
%
|
Average equity to
average assets
|
16.75
|
%
|
|
17.50
|
%
|
|
19.02
|
%
|
|
17.68
|
%
|
|
20.07
|
%
|
Non-interest bearing
deposits to total deposits (end of period)
|
19.45
|
%
|
|
19.07
|
%
|
|
17.59
|
%
|
|
19.45
|
%
|
|
17.59
|
%
|
Net interest
margin
|
3.84
|
%
|
|
3.73
|
%
|
|
3.78
|
%
|
|
3.83
|
%
|
|
3.81
|
%
|
Net interest margin
(fully taxable equivalent)(2)(4)
|
3.87
|
%
|
|
3.75
|
%
|
|
3.78
|
%
|
|
3.85
|
%
|
|
3.81
|
%
|
Interest rate
spread(5)
|
3.75
|
%
|
|
3.63
|
%
|
|
3.66
|
%
|
|
3.72
|
%
|
|
3.68
|
%
|
Yield on earning
assets
|
4.18
|
%
|
|
4.05
|
%
|
|
4.11
|
%
|
|
4.15
|
%
|
|
4.16
|
%
|
Yield on earning
assets (fully taxable equivalent)(2)(3)
|
4.21
|
%
|
|
4.07
|
%
|
|
4.11
|
%
|
|
4.17
|
%
|
|
4.16
|
%
|
Cost of interest
bearing liabilities(3)
|
0.46
|
%
|
|
0.44
|
%
|
|
0.45
|
%
|
|
0.45
|
%
|
|
0.48
|
%
|
Cost of
deposits
|
0.37
|
%
|
|
0.37
|
%
|
|
0.38
|
%
|
|
0.37
|
%
|
|
0.41
|
%
|
Non-interest expense
to average assets
|
2.72
|
%
|
|
3.10
|
%
|
|
3.50
|
%
|
|
3.08
|
%
|
|
3.55
|
%
|
Efficiency
ratio
|
84.91
|
%
|
|
84.22
|
%
|
|
93.36
|
%
|
|
85.82
|
%
|
|
89.70
|
%
|
Efficiency ratio
(fully taxable equivalent) (2)(6)
|
84.19
|
%
|
|
83.78
|
%
|
|
93.36
|
%
|
|
85.35
|
%
|
|
89.70
|
%
|
Adjusted efficiency
ratio (fully taxable equivalent)(2)(6)
|
71.58
|
%
|
|
72.10
|
%
|
|
73.52
|
%
|
|
72.13
|
%
|
|
75.46
|
%
|
Asset Quality Data
(7)(8)(9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans
to total loans
|
0.50
|
%
|
|
0.87
|
%
|
|
1.31
|
%
|
|
0.50
|
%
|
|
1.31
|
%
|
Covered
non-performing loans to total non-performing loans
|
12.18
|
%
|
|
8.13
|
%
|
|
68.89
|
%
|
|
12.18
|
%
|
|
68.89
|
%
|
Non-performing assets
to total assets
|
0.85
|
%
|
|
1.37
|
%
|
|
1.94
|
%
|
|
0.85
|
%
|
|
1.94
|
%
|
Covered
non-performing assets to total non-performing assets
|
48.56
|
%
|
|
48.23
|
%
|
|
58.50
|
%
|
|
48.56
|
%
|
|
58.50
|
%
|
Allowance for loan
losses to total loans
|
0.81
|
%
|
|
0.76
|
%
|
|
0.68
|
%
|
|
0.81
|
%
|
|
0.68
|
%
|
Allowance for loan
losses to total non-covered loans
|
0.89
|
%
|
|
0.85
|
%
|
|
0.81
|
%
|
|
0.89
|
%
|
|
0.81
|
%
|
Allowance for loan
losses to non-performing loans
|
162.89
|
%
|
|
87.62
|
%
|
|
51.43
|
%
|
|
162.89
|
%
|
|
51.43
|
%
|
Net charge-offs to
average loans
|
0.04
|
%
|
|
0.09
|
%
|
|
(0.07)
|
%
|
|
0.05
|
%
|
|
0.41
|
%
|
(1)
|
Ratios are
annualized.
|
(2)
|
Ratio represents
non-GAAP financial measure. See non-GAAP reconciliations
starting on page 16.
|
(3)
|
Interest earning
assets include assets that earn interest/accretion or dividends,
except for the FDIC indemnification asset that may earn accretion
but is not part of interest earning assets. 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 plus
non-interest income on a fully taxable equivalent basis.
|
(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
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statements of
Financial Condition Non-GAAP Reconciliations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2014
|
|
September 30,
2014
|
|
December
31,
2013
|
|
Total shareholders'
equity
|
|
$
|
794,575
|
|
|
$
|
808,962
|
|
|
$
|
897,792
|
|
Less: goodwill and
intangible assets, net
|
|
(76,513)
|
|
|
(77,850)
|
|
|
(81,859)
|
|
Add: deferred tax
liability related to goodwill
|
|
6,222
|
|
|
5,834
|
|
|
4,671
|
|
Tangible common
equity (non-GAAP)
|
|
$
|
724,284
|
|
|
$
|
736,946
|
|
|
$
|
820,604
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
4,819,646
|
|
|
$
|
4,812,807
|
|
|
$
|
4,914,115
|
|
Less: goodwill and
intangible assets, net
|
|
(76,513)
|
|
|
(77,850)
|
|
|
(81,859)
|
|
Add: deferred tax
liability related to goodwill
|
|
6,222
|
|
|
5,834
|
|
|
4,671
|
|
Tangible assets
(non-GAAP)
|
|
$
|
4,749,355
|
|
|
$
|
4,740,791
|
|
|
$
|
4,836,927
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity to tangible assets calculations:
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity to total assets
|
|
16.49
|
%
|
|
16.81
|
%
|
|
18.27
|
%
|
Less: impact of
goodwill and intangible assets, net
|
|
(1.24%)
|
|
|
(1.27%)
|
|
|
(1.30%)
|
|
Tangible common
equity to tangible assets (non-GAAP)
|
|
15.25
|
%
|
|
15.54
|
%
|
|
16.97
|
%
|
|
|
|
|
|
|
|
|
|
|
Common book value
per share calculations:
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
$
|
794,575
|
|
|
$
|
808,962
|
|
|
$
|
897,792
|
|
Divided by: ending
shares outstanding
|
|
38,884,953
|
|
|
39,862,824
|
|
|
44,918,336
|
|
Common book value per
share
|
|
$
|
20.43
|
|
|
$
|
20.29
|
|
|
$
|
19.99
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
book value per share calculations:
|
|
|
|
|
|
|
|
|
|
Tangible common
equity (non-GAAP)
|
|
$
|
724,284
|
|
|
$
|
736,946
|
|
|
$
|
820,604
|
|
Divided by: ending
shares outstanding
|
|
38,884,953
|
|
|
39,862,824
|
|
|
44,918,336
|
|
Tangible common book
value per share (non-GAAP)
|
|
$
|
18.63
|
|
|
$
|
18.49
|
|
|
$
|
18.27
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
book value per share, excluding accumulated other comprehensive
income (loss) calculations:
|
|
|
|
|
|
|
|
|
|
Tangible common
equity (non-GAAP)
|
|
$
|
724,284
|
|
|
$
|
736,946
|
|
|
$
|
820,604
|
|
Less: accumulated
other comprehensive income (loss), net of tax
|
|
(5,839)
|
|
|
(1,896)
|
|
|
6,756
|
|
Tangible common book
value, excluding accumulated other comprehensive income (loss), net
of tax (non-GAAP)
|
|
718,445
|
|
|
735,050
|
|
|
827,360
|
|
Divided by: ending
shares outstanding
|
|
38,884,953
|
|
|
39,862,824
|
|
|
44,918,336
|
|
Tangible common book
value per share, excluding accumulated other comprehensive income
(loss), net of tax (non-GAAP)
|
|
$
|
18.48
|
|
|
$
|
18.44
|
|
|
$
|
18.42
|
|
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,
2014
|
|
September 30,
2014
|
|
December 31,
2013
|
|
December 31,
2014
|
|
December 31,
2013
|
Net income
|
$
|
2,279
|
|
|
$
|
3,337
|
|
|
$
|
1,000
|
|
|
$
|
9,176
|
|
|
$
|
6,927
|
|
Add: impact of core
deposit intangible amortization expense, after tax
|
815
|
|
|
815
|
|
|
809
|
|
|
3,260
|
|
|
3,235
|
|
Net income adjusted
for impact of core deposit intangible amortization expense, after
tax
|
$
|
3,094
|
|
|
$
|
4,152
|
|
|
$
|
1,809
|
|
|
$
|
12,436
|
|
|
$
|
10,162
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
$
|
4,846,444
|
|
|
$
|
4,854,809
|
|
|
$
|
5,014,174
|
|
|
$
|
4,867,929
|
|
|
$
|
5,175,210
|
|
Less: average
goodwill and intangible assets, net of deferred tax asset related
to goodwill
|
71,080
|
|
|
72,781
|
|
|
77,973
|
|
|
73,074
|
|
|
79,964
|
|
Average tangible
assets (non-GAAP)
|
$
|
4,775,364
|
|
|
$
|
4,782,028
|
|
|
$
|
4,936,201
|
|
|
$
|
4,794,855
|
|
|
$
|
5,095,246
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholder's
equity
|
$
|
808,636
|
|
|
$
|
849,351
|
|
|
$
|
953,836
|
|
|
$
|
860,691
|
|
|
$
|
1,038,753
|
|
Less: average
goodwill and intangible assets, net of deferred tax asset related
to goodwill
|
71,080
|
|
|
72,781
|
|
|
77,973
|
|
|
73,074
|
|
|
79,964
|
|
Average tangible
common equity (non-GAAP)
|
$
|
737,556
|
|
|
$
|
776,570
|
|
|
$
|
875,863
|
|
|
$
|
787,617
|
|
|
$
|
958,789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
0.19
|
%
|
|
0.27
|
%
|
|
0.08
|
%
|
|
0.19
|
%
|
|
0.13
|
%
|
Return on average
tangible assets (non-GAAP)
|
0.26
|
%
|
|
0.34
|
%
|
|
0.15
|
%
|
|
0.26
|
%
|
|
0.20
|
%
|
Return on average
equity
|
1.12
|
%
|
|
1.56
|
%
|
|
0.42
|
%
|
|
1.07
|
%
|
|
0.67
|
%
|
Return on average
tangible common equity (non-GAAP)
|
1.66
|
%
|
|
2.12
|
%
|
|
0.82
|
%
|
|
1.58
|
%
|
|
1.06
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
2014
|
|
September 30,
2014
|
|
December 31,
2013
|
|
December 31,
2014
|
|
December 31,
2013
|
Interest
income
|
$
|
46,280
|
|
|
$
|
45,492
|
|
|
$
|
47,377
|
|
|
$
|
184,662
|
|
|
$
|
195,475
|
|
Add: impact of
taxable equivalent adjustment
|
320
|
|
|
231
|
|
|
—
|
|
|
930
|
|
|
—
|
|
Interest income,
fully taxable equivalent (non-GAAP)
|
$
|
46,600
|
|
|
$
|
45,723
|
|
|
$
|
47,377
|
|
|
$
|
185,592
|
|
|
$
|
195,475
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
42,584
|
|
|
$
|
41,895
|
|
|
$
|
43,590
|
|
|
$
|
170,249
|
|
|
$
|
178,961
|
|
Add: impact of
taxable equivalent adjustment
|
320
|
|
|
231
|
|
|
—
|
|
|
930
|
|
|
—
|
|
Net interest income,
fully taxable equivalent (non-GAAP)
|
$
|
42,904
|
|
|
$
|
42,126
|
|
|
$
|
43,590
|
|
|
$
|
171,179
|
|
|
$
|
178,961
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average earning
assets
|
4,395,091
|
|
|
4,453,822
|
|
|
4,573,216
|
|
|
4,446,903
|
|
|
4,698,552
|
|
Yield on earning
assets
|
4.18
|
%
|
|
4.05
|
%
|
|
4.11
|
%
|
|
4.15
|
%
|
|
4.16
|
%
|
Yield on earning
assets,fully taxable equivalent (non-GAAP)
|
4.21
|
%
|
|
4.07
|
%
|
|
4.11
|
%
|
|
4.17
|
%
|
|
4.16
|
%
|
Net interest
margin
|
3.84
|
%
|
|
3.73
|
%
|
|
3.78
|
%
|
|
3.83
|
%
|
|
3.81
|
%
|
Net interest margin,
fully taxable equivalent (non-GAAP)
|
3.87
|
%
|
|
3.75
|
%
|
|
3.78
|
%
|
|
3.85
|
%
|
|
3.81
|
%
|
Adjusted
Efficiency Ratio
|
|
As of and
for the
three months ended
|
|
As of and
for the
years ended
|
|
December 31,
2014
|
|
September 30,
2014
|
|
December 31,
2013
|
|
December 31,
2014
|
|
December 31,
2013
|
Net interest
income
|
$
|
42,584
|
|
|
$
|
41,895
|
|
|
$
|
43,590
|
|
|
$
|
170,249
|
|
|
$
|
178,961
|
|
Add: impact of
taxable equivalent adjustment
|
320
|
|
|
231
|
|
|
—
|
|
|
930
|
|
|
—
|
|
Net interest income,
fully taxable equivalent (non-GAAP)
|
$
|
42,904
|
|
|
$
|
42,126
|
|
|
$
|
43,590
|
|
|
$
|
171,179
|
|
|
$
|
178,961
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income
|
$
|
(5,117)
|
|
|
$
|
1,614
|
|
|
$
|
2,364
|
|
|
$
|
(1,696)
|
|
|
$
|
20,177
|
|
Add: FDIC
indemnification asset amortization
|
7,922
|
|
|
6,252
|
|
|
7,117
|
|
|
27,741
|
|
|
18,960
|
|
Add: FDIC loss
sharing income (expense)
|
6,313
|
|
|
943
|
|
|
467
|
|
|
8,862
|
|
|
(2,811)
|
|
Less: gain on sale of
previously charged-off acquired loans
|
(62)
|
|
|
(147)
|
|
|
(221)
|
|
|
(737)
|
|
|
(1,339)
|
|
Less: impact of OREO
related write-ups and other income
|
(1,030)
|
|
|
(799)
|
|
|
(2,104)
|
|
|
(3,807)
|
|
|
(4,817)
|
|
Adjusted non-interest
income (non-GAAP)
|
$
|
8,026
|
|
|
$
|
7,863
|
|
|
$
|
7,623
|
|
|
$
|
30,363
|
|
|
$
|
30,170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense
adjusted for core deposit intangible asset amortization
|
$
|
31,813
|
|
|
$
|
36,645
|
|
|
$
|
42,901
|
|
|
$
|
144,659
|
|
|
$
|
178,619
|
|
Less: impact of
change in fair value of warrant liabilities
|
219
|
|
|
1,256
|
|
|
(682)
|
|
|
2,953
|
|
|
(820)
|
|
Less: other real
estate owned expenses
|
8,979
|
|
|
(594)
|
|
|
(3,282)
|
|
|
5,350
|
|
|
(10,957)
|
|
Less: problem loan
expenses
|
(448)
|
|
|
(1,267)
|
|
|
(1,283)
|
|
|
(3,482)
|
|
|
(5,644)
|
|
Less: deconversion
expenses
|
(4,110)
|
|
|
—
|
|
|
—
|
|
|
(4,110)
|
|
|
—
|
|
Less: banking center
closure related expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,389)
|
|
Adjusted non-interest
expense (non-GAAP)
|
$
|
36,453
|
|
|
$
|
36,040
|
|
|
$
|
37,654
|
|
|
$
|
145,370
|
|
|
$
|
157,809
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
84.91
|
%
|
|
84.22
|
%
|
|
93.36
|
%
|
|
85.82
|
%
|
|
89.70
|
%
|
Efficiency ratio
(fully taxable equivalent) (non-GAAP)
|
84.19
|
%
|
|
83.78
|
%
|
|
93.36
|
%
|
|
85.35
|
%
|
|
89.70
|
%
|
Adjusted efficiency
ratio (fully taxable equivalent) (non-GAAP)
|
71.57
|
%
|
|
72.10
|
%
|
|
73.52
|
%
|
|
72.13
|
%
|
|
75.46
|
%
|
Adjusted Financial
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
For the years
ended
|
|
December 31,
2014
|
|
September 30,
2014
|
|
December 31,
2013
|
|
December 31,
2014
|
|
December 31,
2013
|
Adjustments to
diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per share -
diluted
|
$
|
0.06
|
|
|
$
|
0.08
|
|
|
$
|
0.02
|
|
|
$
|
0.22
|
|
|
$
|
0.14
|
|
Adjustments to
diluted earnings per share (non-GAAP)(1)
|
0.13
|
|
|
0.09
|
|
|
0.13
|
|
|
0.45
|
|
|
0.37
|
|
Adjusted diluted
earnings per share (non-GAAP)(1)
|
$
|
0.19
|
|
|
$
|
0.17
|
|
|
$
|
0.15
|
|
|
$
|
0.67
|
|
|
$
|
0.51
|
|
Adjustments to
return on average tangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized
adjustments to net income (non-GAAP)(1)
|
$
|
21,384
|
|
|
$
|
15,064
|
|
|
$
|
24,772
|
|
|
$
|
19,118
|
|
|
$
|
18,908
|
|
Divided by: average
tangible assets (non-GAAP)
|
4,755,364
|
|
|
4,782,029
|
|
|
4,936,201
|
|
|
4,794,855
|
|
|
5,095,246
|
|
Adjustments to return
on average tangible assets (non-GAAP)
|
0.45
|
%
|
|
0.32
|
%
|
|
0.50
|
%
|
|
0.40
|
%
|
|
0.37
|
%
|
Return on average
tangible assets (non-GAAP)
|
0.26
|
%
|
|
0.34
|
%
|
|
0.15
|
%
|
|
0.26
|
%
|
|
0.20
|
%
|
Adjusted return on
average tangible assets (non-GAAP)
|
0.71
|
%
|
|
0.66
|
%
|
|
0.65
|
%
|
|
0.66
|
%
|
|
0.57
|
%
|
Adjustments to net
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
2,279
|
|
|
$
|
3,337
|
|
|
$
|
1,000
|
|
|
$
|
9,176
|
|
|
$
|
6,927
|
|
Adjustments to net
income (non-GAAP)(1)
|
5,390
|
|
|
3,797
|
|
|
6,244
|
|
|
19,118
|
|
|
18,908
|
|
Adjusted net income
(non-GAAP)
|
$
|
7,669
|
|
|
$
|
7,134
|
|
|
$
|
7,244
|
|
|
$
|
28,294
|
|
|
$
|
25,835
|
|
(1)
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: FDIC
indemnification asset amortization
|
$
|
7,922
|
|
|
$
|
6,252
|
|
|
$
|
7,117
|
|
|
$
|
27,741
|
|
|
$
|
18,960
|
|
Plus: other
FDIC loss sharing income (loss)
|
6,313
|
|
|
943
|
|
|
467
|
|
|
8,862
|
|
|
(2,811)
|
|
Less: gain on
recoveries of previously charged-off acquired loans
|
(62)
|
|
|
(147)
|
|
|
(221)
|
|
|
(737)
|
|
|
(1,339)
|
|
Less: OREO
related write-ups and other income
|
(1,030)
|
|
|
(799)
|
|
|
(2,104)
|
|
|
(3,807)
|
|
|
(4,817)
|
|
Total non-interest
income adjustments (non-GAAP)
|
$
|
13,143
|
|
|
$
|
6,249
|
|
|
$
|
5,259
|
|
|
$
|
32,059
|
|
|
$
|
9,993
|
|
Non-interest expense
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: other
real estate owned expenses (income)
|
$
|
8,979
|
|
|
$
|
(594)
|
|
|
$
|
(3,282)
|
|
|
$
|
5,350
|
|
|
$
|
(10,957)
|
|
Less: problem
loan expenses
|
(448)
|
|
|
(1,267)
|
|
|
(1,283)
|
|
|
(3,482)
|
|
|
(5,644)
|
|
Plus: warrant
change
|
219
|
|
|
1,256
|
|
|
(682)
|
|
|
2,953
|
|
|
(820)
|
|
Less: contract
termination expenses
|
(4,110)
|
|
|
—
|
|
|
—
|
|
|
(4,110)
|
|
|
—
|
|
Less: banking
center closure related expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,389)
|
|
Total non-interest
expense adjustments (non-GAAP)
|
$
|
4,640
|
|
|
$
|
(605)
|
|
|
$
|
(5,247)
|
|
|
$
|
711
|
|
|
$
|
(20,810)
|
|
Pre-tax
adjustments
|
8,503
|
|
|
6,854
|
|
|
10,506
|
|
|
31,348
|
|
|
30,803
|
|
Collective tax
expense impact
|
(3,113)
|
|
|
(3,057)
|
|
|
(4,262)
|
|
|
(12,230)
|
|
|
(11,895)
|
|
Adjustments to net
income (non-GAAP)
|
$
|
5,390
|
|
|
$
|
3,797
|
|
|
$
|
6,244
|
|
|
$
|
19,118
|
|
|
$
|
18,908
|
|
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SOURCE National Bank Holdings Corporation