National Bank (NBHC) Q4 2024 earnings summary

Executive summary

• Q4 2024 adjusted net income was $33.2 million ($0.86 per diluted share), with a 14.4% adjusted return on tangible common equity, after excluding a $6.6 million pre-tax loss on securities sales as part of strategic balance sheet management.

• Full year 2024 net income was $118.8 million ($3.08 per diluted share); adjusted net income was $123.9 million ($3.22 per share).

• Tangible book value per share grew 11% year-over-year to $25.28; total assets ended the year at $9.8 billion.

• Average total deposits increased 4.7% year-over-year to $8.3 billion, with 78% FDIC insured and a granular, relationship-focused base.

• Credit quality remained solid with annualized net charge-offs at 0.11% and non-performing loans at 0.46% of total loans.

Financial highlights

• Q4 net interest income (FTE) was $92 million, up 11.3% annualized, with a net interest margin of 3.99%.

• Non-interest income for Q4 was $11.1 million, including a $6.6 million pre-tax loss on securities sales.

• Non-interest expense for Q4 was $64.5 million, including $1.2 million in banking center consolidation costs; efficiency ratio (adjusted) improved to 57.03%.

• Loans outstanding totaled $7.8 billion; Q4 loan fundings were $480 million at a 7.9% weighted average rate.

• Average deposit growth for 2024 was 4.7%; tangible book value per share up 11%.

Outlook and guidance

• 2025 loan growth projected in mid-single digits; net interest margin expected to remain in the 3.9% range.

• 2025 non-interest income projected at $72–$77 million; non-interest expense at $272–$278 million, including $27–$29 million for 2UniFi.

• Core bank non-interest expense (excluding 2UniFi) projected to increase 3% in 2025; effective tax rate projected at 19%.

• Share count expected to remain around 38.6 million diluted shares.

• Proceeds from securities sales will be redeployed to higher-yielding assets over time.