National Bank (NBHC) Q2 2025 earnings summary

Executive summary

• Q2 2025 net income was $34.0 million ($0.88 per diluted share), up 40.4% sequentially and 30.2% year-over-year, with strong returns on average tangible assets (1.49%) and tangible common equity (14.18%).

• Achieved $323 million in new loan production, a 26% increase over the previous quarter, while reducing exposure to higher-risk asset classes and maintaining pricing discipline.

• Successfully launched the 2UniFi digital financial ecosystem for business clients, with positive user feedback and a strategic partnership with Nav.

• Implemented a bank-wide expense reduction plan, reducing annualized personnel expense run rate by 10% through position eliminations and automation.

• Tangible book value per share grew 10.7% annualized to $26.64 year to date.

Financial highlights

• Net interest margin (FTE) expanded to 3.95% for Q2 2025, with net interest income of $89.3 million, up 4.7% year-over-year.

• Total assets reached $10.0 billion, loans outstanding $7.5 billion, and deposits $8.3 billion as of June 30, 2025.

• Non-interest expense was $62.9 million, including $0.3 million in restructuring charges; efficiency ratio improved to 57.3%.

• Non-interest income rose 11.0% sequentially to $17.1 million, driven by property sales and higher bank card fees.

• Tangible common equity to tangible assets ratio was 10.5%.

Outlook and guidance

• Projecting annualized mid-single-digit loan growth for the second half of the year, supported by a strong pipeline.

• Total non-interest income for H2 2025 expected in the $34–36 million range.

• Non-interest expense for H2 2025 projected at $126–128 million, inclusive of $16–17 million for 2UniFi.

• Dividend payout ratio targeted at 30-40% of core earnings.

• Management expects continued competition for deposits and ongoing macroeconomic uncertainty, but has not seen a material impact on financial condition or liquidity.