National Bank Holdings Corporation reported its second quarter 2026 financial results, with net income of $26.5 million, or $0.58 per diluted share. Adjusting for $11.4 million of pre-tax acquisition and restructuring related charges, adjusted net income totaled $35.3 million, or $0.78 per diluted share. CEO Tim Laney highlighted record quarterly loan fundings of $926.9 million and 10% year-to-date annualized loan growth, while maintaining strong credit quality and a top quartile net interest margin through disciplined pricing.

Second Quarter 2026 Financial Performance

The following table summarizes key quarterly performance metrics compared to the prior quarter and the same period last year:

Fully taxable equivalent (FTE) pre-provision net revenue increased $4.2 million, or 13.1%, to $36.3 million compared to the prior quarter. Adjusted FTE pre-provision net revenue totaled $47.8 million. The return on average tangible assets increased 17 basis points to 0.96%, and the return on average tangible common equity increased 195 basis points to 9.70%.

Net Interest Income and Margin

Fully taxable equivalent net interest income increased $0.5 million to $111.5 million, primarily due to average interest earning asset growth of $254.0 million and one additional day in the quarter. The FTE net interest margin totaled 3.94%, narrowing 12 basis points from 4.06% in the prior quarter, driven by lower loan fee income compared to the prior period. The cost of deposits improved one basis point to 1.93%.

Loan Growth and Asset Quality

Loans increased $162.6 million, or 6.8% annualized, to $9.8 billion at June 30, 2026. The company generated record quarterly loan fundings of $926.9 million, led by commercial loan fundings of $452.5 million. Credit quality remained strong, with the provision expense for credit losses totaling $1.5 million during the quarter, down from $4.0 million in the prior quarter.

Deposits and Non-Interest Income

Average total deposits increased $57.4 million to $10.2 billion, and average transaction deposits increased $115.7 million to $8.9 billion. The loan to deposit ratio totaled 94.1% at June 30, 2026, compared to 91.9% in the prior quarter. The mix of transaction deposits to total deposits increased 16 basis points to 87.8%.

Non-interest income increased $1.8 million, or 9.9%, to $19.8 million. Income from partnership investments increased $1.1 million and service charges and bank card fees increased $0.6 million, partially offset by a decrease in mortgage banking income.

Non-Interest Expense and Efficiency

Non-interest expense improved $1.9 million to $95.0 million. Included in the second and first quarters were acquisition and restructuring related expenses of $11.2 million and $15.3 million, respectively. Excluding these items, adjusted non-interest expense totaled $83.7 million, compared to $81.5 million in the prior quarter. The FTE efficiency ratio improved 277 basis points to 72.3%, while the adjusted FTE efficiency ratio totaled 61.8%, compared to 61.3%.

Capital Position

Common book value per share increased $0.23 to $37.48 at June 30, 2026, and tangible book value per share increased $0.22 to $26.23. The company executed $11.1 million of share buybacks in the second quarter. Capital ratios remained well in excess of regulatory "well capitalized" thresholds.

Shareholders' equity increased $4.2 million to $1.7 billion at June 30, 2026, compared to March 31, 2026, primarily driven by $11.9 million of growth in retained earnings from net income after covering the quarter's dividend and share buybacks.

Year-Over-Year Review

For the six months ended June 30, 2026, net income totaled $47.3 million, or $1.04 per diluted share, compared to $58.3 million, or $1.51 per diluted share, in the same period of the prior year. Adjusting for $26.8 million of pre-tax acquisition and restructuring related charges, adjusted net income increased $9.7 million, or 16.6%, to $67.9 million, or $1.50 per diluted share. FTE net interest income increased $44.6 million, or 25.1%, to $222.5 million, driven by a $2.1 billion, or 23.2%, increase in average earning assets. The Vista acquisition added $1.9 billion in total loans on January 7, 2026. Loans outstanding increased $2.3 billion, or 30.5%, to $9.8 billion, and new loan fundings over the trailing twelve months totaled a record $2.7 billion. Non-interest income increased $5.3 million, or 16.3%, to $37.7 million. Income tax expense totaled $11.3 million, with an effective tax rate of 19.2%.

National Bank Holdings Corporation expects to report its second quarter 2026 financial results after the markets close on Tuesday, July 21, 2026. The bank holding company will provide details on its financial performance and operational metrics during this period. Management will host a conference call to review the results and discuss company developments at 11:00 a.m. Eastern Time on Wednesday, July 22, 2026.

The conference call will include a discussion of forward-looking statements and other material information regarding business and financial matters. Interested parties can participate by dialing 800-330-6710 and using the participant passcode 8928718. A recording of the call will be available approximately four hours after its completion on the company’s investor relations website.

National Bank Holdings Corporation operates through its bank subsidiaries, NBH Bank and Bank of Jackson Hole Trust. The entity manages a network of over 90 banking centers across several states including Colorado, Kansas, Texas, Utah, Wyoming, New Mexico, Idaho, and Palm Beach, Florida. Its operations encompass residential mortgage banking and trust and wealth management services within its core footprint.

The table below outlines the key event details for the earnings release:

NBH Bank operates its core banking business under a single state charter through various brand names such as Community Banks of Colorado, Bank Midwest, Vista Bank, and Hillcrest Bank, depending on the region. The trust and wealth management business is operated through the Bank of Jackson Hole division.