Key Highlights

  • Consensus EPS of 0.79 compares with diluted EPS of 0.58 for the second quarter, against 0.88 last year.
  • Consensus revenue of USD 134.81 million, against net interest income of USD 109,292 thousand plus USD 19,766 thousand noninterest income.
  • Net interest income rose USD 21.9 million, or 25.0%, with average acquired loans adding USD 1.6 billion.
  • Noninterest expense was USD 94,950 thousand against USD 62,931 thousand, and six-month expense included USD 26.6 million of acquisition costs.

National Bank Holdings (NYSE:NBHC) reports third-quarter results on Tuesday, Oct. 27, after the market closes. Consensus stands at EPS of 0.79 on revenue of USD 134.81 million, and the company has a market capitalization of USD 1.73 billion.

National Bank Holdings is a bank holding company that completed its acquisition of Vista Bancshares. In the second quarter, it reported net interest income of USD 109,292 thousand against USD 87,409 thousand and net income of USD 26,490 thousand against USD 34,022 thousand.

Estimates Against the Last Reported Quarter

The EPS estimate of 0.79 is above the diluted EPS of 0.58 reported for the second quarter, which compared with 0.88 a year earlier. The revenue estimate of USD 134.81 million is above the sum of net interest income of USD 109,292 thousand and noninterest income of USD 19,766 thousand, and the estimates table does not state its revenue basis.

Income before income taxes was USD 32,608 thousand against USD 41,544 thousand. Basic EPS was 0.58 against 0.89.

Net Interest Income and the Acquired Loans

Net interest income rose USD 21.9 million, or 25.0%, to USD 109.3 million. On a fully taxable equivalent basis it rose USD 22.2 million to USD 111.5 million. Interest and dividend income was USD 162,004 thousand against USD 131,220 thousand.

Average loans were USD 9.6 billion, or 84.9% of total average interest earning assets, against USD 7.6 billion, or 83.2%. The USD 2.1 billion increase in average loans reflected a USD 1.6 billion increase in average acquired loans and USD 0.5 billion of originated loan growth.

Average interest bearing liabilities rose USD 1.8 billion, led by USD 1.4 billion of higher interest bearing demand, savings and money market deposits, USD 208.5 million of time deposits and USD 147.6 million of long-term debt.

Noninterest Income and Expense Changes

Noninterest income totaled USD 19.8 million, up 15.8%, with other noninterest income up USD 2.4 million, including a USD 0.8 million increase in income from partnership investments and gains in trust and other fee lines.

Noninterest expense was USD 94,950 thousand against USD 62,931 thousand. For the six months, it totaled USD 191.8 million, including USD 26.6 million of acquisition and restructuring expenses, against USD 124.9 million. Excluding those costs, six-month noninterest expense was USD 165.2 million, which the filing ties primarily to the recent acquisition.

The six-month efficiency ratio on a fully taxable equivalent basis was 73.7% against 59.4%, and the adjusted ratio was 61.6%. The estimates table lists a market capitalization of USD 1.73 billion.

Figures to Follow in the Release

Diluted EPS against 0.79 and revenue against USD 134.81 million are the headline comparisons. Other markers are net interest income against USD 109.3 million, noninterest expense and any further acquisition and restructuring costs.