National Bank Holdings Corporation (NBHC) reported a net income of $35.3 million for the third quarter of 2025, representing an increase of $1.3 million from the previous quarter. Earnings per share also saw an increase to $0.92 per diluted share, up from $0.88 in the second quarter of 2025.
Return on average tangible assets increased to 1.54%, up from 1.49% in the previous quarter, while return on average tangible common equity increased to 14.21%, up from 14.18%. Adjusting for acquisition-related expenses, net income increased by 30.3% annualized to $36.6 million, or $0.96 per diluted share.
Net interest income saw an increase of $0.9 million to $90.2 million, driven by a three basis point widening of the fully taxable equivalent net interest margin to 3.98%. Loans totaled $7.4 billion at September 30, 2025, with quarterly loan fundings of $421.2 million, primarily led by commercial loan fundings of $288.0 million.
The provision release for credit losses was $1.5 million, compared to no provision in the previous quarter. Non-performing loans improved by nine basis points to 0.36% of total loans at September 30, 2025.
Non-interest income increased by $3.6 million, or 21.2%, to $20.7 million during the third quarter, with unrealized gains on partnership investments contributing $3.5 million to this increase.
Non-interest expense totaled $67.2 million, compared to $62.9 million in the second quarter, and included $1.7 million of acquisition-related expenses.
NBHC executed $8.8 million of share buybacks in the third quarter as part of its ongoing capital strategy. The tier 1 leverage ratio totaled 11.49%, and the common equity tier 1 capital ratio totaled 14.69% at September 30, 2025.
For the first nine months of 2025, net income increased to $93.5 million, or $2.43 per diluted share, compared to $90.6 million, or $2.36 per diluted share in the same period in 2024. Adjusting for acquisition-related expenses, net income increased by 6.3% annualized to $94.9 million, or $2.47 per diluted share, for the first nine months of 2025.
Fully taxable equivalent net interest income increased to $268.1 million, with the fully taxable equivalent net interest margin widening to 3.95%. The company recorded $8.7 million of provision expense for credit losses, compared to $4.8 million in the same period prior year.
As a result of these announcements, the company's shares have moved 1.4% on the market, and are now trading at a price of $36.88. For the full picture, make sure to review National Bank's 8-K report.
