National Bank Holdings Q2 profit jumps 40%, margin widens on loan growth

Overview

• National Bank Holdings Q2 net income rises 40% to $34 mln, EPS at $0.88

• Net interest income for Q2 grows to $87.4 mln, margin widens to 3.95%

• Company launches 2UniFi financial ecosystem, enhancing business banking

Outlook

• Says excess capital position provides option to act on a variety of growth opportunities

• Company remains disciplined in credit extension amid market conditions

Result Drivers

• NET INTEREST INCOME - Increase driven by net interest margin of 3.95%, despite higher cost of funds

• LOAN FUNDINGS - Commercial loan fundings led to $322.7 mln in new loans, with a weighted average rate of 7.4%

• CREDIT QUALITY - No provision expense for credit losses recorded, with net charge-offs at 0.05% of average total loans

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for National Bank Holdings Corp is $41.00, about 3.3% above its July 21 closing price of $39.63

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nGNX8v5rqr