National Bank Holdings Corporation (NBHC) announced its financial results for the second quarter of 2025, reporting a net income of $34.0 million, or $0.88 per diluted share. This represents an increase of $9.8 million, or 40.4%, compared to the first quarter of 2025. The return on average tangible assets increased by 40 basis points to 1.49%, while the return on average tangible common equity increased by 3.54% to 14.18% compared to the first quarter of 2025.
The fully taxable equivalent pre-provision net revenue grew by 19.9% year-over-year, reaching $43.5 million for the second quarter of 2025, primarily driven by a strong net interest margin of 3.95%. Additionally, the company reported a common equity tier 1 capital ratio of 14.2%, indicating significant capital growth.
In terms of net interest income, the fully taxable equivalent net interest margin widened by two basis points to 3.95%, driven by an increase in earning asset yields. However, loans decreased to $7.5 billion at June 30, 2025, compared to $7.6 billion, with quarterly loan fundings totaling $322.7 million, primarily led by commercial loan fundings of $219.6 million.
The company recorded no provision expense for credit losses in the second quarter of 2025, compared to $10.2 million in the previous quarter, and annualized net charge-offs decreased to 0.05% of average total loans, down from 0.80%.
Non-interest income increased by 11.0% to $17.1 million in the second quarter of 2025, driven by income from partnership investments, bank card fees, and gains from the sales of two previously consolidated banking center properties.
On the expense side, non-interest expense totaled $62.9 million, slightly increasing from the previous quarter but decreasing by $1.0 million when excluding the impact of non-recurring restructuring charges. The effective tax rate was 18.1%, compared to 18.8% in the first quarter of 2025.
Capital ratios remained robust, with the common equity tier 1 capital ratio totaling 14.17% at June 30, 2025. Shareholders' equity increased by $23.2 million to $1.4 billion at June 30, 2025, primarily driven by growth in retained earnings from net income after covering the quarter’s dividend.
In a year-over-year review, net income increased by $0.7 million to $58.3 million, or $1.51 per diluted share, compared to the first six months of 2024. Fully taxable equivalent pre-provision net revenue increased by $8.6 million to $85.4 million, while the return on average tangible assets increased by one basis point to 1.29%.
These results reflect the company's strong performance and capital position, providing them with flexibility to explore various growth opportunities, including the recent launch of 2unifi, an innovative financial ecosystem aimed at empowering business entrepreneurs.
National Bank Holdings Corporation will host a conference call to discuss the results on Wednesday, July 23, 2025.
For more information about National Bank Holdings Corporation, visit www.nationalbankholdings.com. Following these announcements, the company's shares moved 0.23%, and are now trading at a price of $39.72. If you want to know more, read the company's complete 8-K report here.
