Highlights

  • Third quarter 2026 net loss was $8.8 million, or $0.20 per diluted share, versus net income of $26.5 million.
  • Provision expense was $40.6 million in the quarter, compared with $1.5 million, tied to specifically identified commercial credits.
  • On October 24, 2026, NBH Bank agreed to sell its Palm Beach, Florida banking center, with closing expected in mid-2027.
  • Loans were $9.9 billion at September 30, 2026, and the tier 1 leverage ratio was 10.00%.

National Bank Holdings Corporation (NYSE:NBHC) shares were trading at USD 37.61 on October 28, 2026, down 3.51%, with a relative volume at time of 5.39. The bank holding company entered into an agreement on October 24, 2026 to sell its Palm Beach banking center and reported a net loss for the third quarter ended September 30, 2026, on October 27, 2026.

National Bank Holdings Corporation is incorporated in Delaware and lists its principal executive offices in Greenwood Village, Colorado. Through its bank subsidiaries, NBH Bank and 2UniFi Bank, it operates a network of over 90 banking centers serving individual consumers, small, medium and large businesses, and government and non-profit entities. Its banking centers are located in Colorado, the greater Kansas City region, Texas, Utah, Wyoming, New Mexico, Idaho and Palm Beach, Florida. It also operates a residential mortgage banking group and a trust and wealth management business.

Third Quarter 2026 Results

Net loss for the third quarter of 2026 was $8.8 million, or $0.20 per diluted share, compared with net income of $26.5 million, or $0.58 per diluted share, in the second quarter. The quarter included $40.6 million of provision expense, $15.2 million of pre-tax acquisition and restructuring expense, and a $4.0 million impairment on a third-party FinTech partnership investment classified within other securities.

Fully taxable equivalent pre-provision net revenue was $30.9 million, compared with $36.3 million. On a non-GAAP basis, adjusting for the $15.2 million of acquisition and restructuring expenses, adjusted net income was $2.9 million, or $0.06 per diluted share, and adjusted pre-provision net revenue was $46.1 million.

Fully taxable equivalent net interest income increased $3.6 million to $115.2 million. The fully taxable equivalent net interest margin expanded six basis points to 4.00%. Non-interest income was $13.5 million, compared with $19.8 million, and non-interest expense was $97.8 million, compared with $95.0 million.

Credit Quality, Loans, Deposits and Capital

The company recorded provision expense of $40.6 million, compared with $1.5 million in the second quarter. It said the increase was primarily write downs on specifically identified commercial loans, principally in the franchise and healthcare industries. Non-performing loans were 0.44% of total loans at September 30, 2026, compared with 0.31%. Non-performing assets were 0.50% of total loans and OREO, compared with 0.35%. The allowance for credit losses was 1.11% of loans, compared with 1.13%.

Loans increased $119.4 million to $9.9 billion. Average total deposits increased $96.0 million to $10.3 billion, and the loan to deposit ratio was 93.8%.

Common book value per share was $36.71, compared with $37.48 at June 30, 2026. Tangible book value per share was $25.37, compared with $26.23. The company executed $11.9 million of share buybacks in the quarter. The tier 1 leverage ratio was 10.00% and the common equity tier 1 capital ratio was 11.69%.

For the nine months ended September 30, 2026, net income was $38.5 million, or $0.84 per diluted share, compared with $93.5 million, or $2.43 per diluted share.

Palm Beach Sale and Management Commentary

On October 24, 2026, NBH Bank entered into a definitive agreement to sell its Palm Beach, Florida banking center, including its loans and deposits. The sale is expected to reduce total assets, total loans and total deposits by approximately $0.2 billion each. The agreement provides for a deposit premium of 5.00%, subject to a minimum deposit premium of $8.8 million. The bank expects the transaction to close in mid-2027.

Chief Executive Officer Tim Laney attributed the net loss primarily to provision expense tied to a handful of specifically identified commercial credits. He said the company has made personnel and process changes in those coverage areas and that none of these actions were prompted by regulators. He said the company is targeting earnings per share of a dollar plus in the fourth quarter. The company does not provide numerical guidance in the release.