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National Bank Holdings Corporation Announces Third Quarter 2022 Financial Results
来源: Nasdaq GlobeNewswire / 27 10月 2022 15:10:01 America/Chicago
DENVER, Oct. 27, 2022 (GLOBE NEWSWIRE) -- National Bank Holdings Corporation (NYSE: NBHC) reported:
For the quarter For the quarter - adjusted(1) 3Q22 2Q22 3Q21 3Q22 2Q22 3Q21 Net income ($000's) $ 15,839 $ 20,362 $ 19,825 $ 25,349 $ 21,135 $ 19,825 Earnings per share - diluted $ 0.50 $ 0.67 $ 0.64 $ 0.80 $ 0.69 $ 0.64 Return on average tangible assets(2) 0.87% 1.16% 1.14% 1.39% 1.20% 1.14% Return on average tangible common equity(2) 8.66% 11.64% 10.65% 13.76% 12.08% 10.65% (1) See non-GAAP reconciliations below. (2) Ratios are annualized. In announcing these results, Chief Executive Officer Tim Laney shared, “We are pleased to deliver solid quarterly earnings of $0.80 per diluted share adjusted for one-time acquisition-related expenses. We generated record organic loan growth of 30.2% annualized, fueled by record loan fundings, while maintaining excellent credit quality with net charge-offs of just one basis point annualized. Our growth is a testament to the dedication and drive of our teammates to provide best-in-class banking solutions to our clients.”
Mr. Laney added, “Since April, we have announced and now closed on the two strategically important acquisitions of Rock Canyon Bank and the Bank of Jackson Hole. Through our teammates’ efforts, we are seamlessly transitioning these high-quality franchises into the NBH Family. The momentum generated through our organic and acquired growth, combined with our fortress levels of capital, leaves us well positioned to address implications of an economic downturn while helping our communities grow stronger.”
Recent Acquisitions
On September 1, 2022, the Company completed its acquisition of Community Bancorporation, the holding company for Rock Canyon Bank, headquartered in Provo, Utah and operating in the greater Salt Lake City region. The transaction added approximately $832 million in total assets, including $538 million in loans, and $734 million in deposits. Additionally, the Company becomes the #1 SBA lender by loan volume in the state of Utah. The merger consideration totaled $140.4 million and consisted of $124.3 million in Company stock and $16.1 million in cash. All operating systems were converted during October 2022.On October 1, 2022, the Company completed its acquisition of Bancshares of Jackson Hole Incorporated, the holding company for Bank of Jackson Hole with operations in Jackson Hole, Wyoming and Idaho. The transaction added approximately $1.5 billion in total assets, including $1.2 billion in loans, and $1.4 billion in deposits and an attractive Wyoming based trust and wealth management business with $0.8 billion in assets under management. The merger consideration totaled $213.4 million and consisted of $162.5 million in Company stock and $51.0 million in cash. All operating systems are expected to be converted in late 2022.
With the completion of these exclusively negotiated transactions, the Company has approximately $9.4 billion in pro-forma assets, including $6.9 billion in total loans, $8.2 billion in total deposits and $0.8 billion in assets under management as of September 30, 2022.
Third Quarter 2022 Results
(All comparisons refer to the second quarter of 2022, except as noted)Net income totaled $15.8 million or $0.50 per diluted share, compared to $20.4 million or $0.67 per diluted share during the second quarter of 2022. The quarter’s results were driven by record net interest income which was impacted by non-recurring acquisition-related expenses, including a $5.4 million CECL Day 1 provision expense, discussed in detail below. Fully taxable equivalent pre-provision net revenue increased $5.4 million to $33.9 million during the third quarter. The return on average tangible assets was 0.87% compared to 1.16% during the second quarter, and the return on average tangible common equity was 8.66% compared to 11.64%.
Adjusting for acquisition-related provision expense and non-recurring acquisition-related expenses of $12.4 million during the third quarter and $1.0 million of non-recurring acquisition-related expenses during the second quarter, adjusted net income totaled $25.3 million or $0.80 per diluted share compared to $21.1 million or $0.69 per diluted share. Adjusted fully taxable equivalent pre-provision net revenue increased $11.3 million to $40.9 million. The adjusted return on average tangible assets was 1.39% compared to 1.20%, and the adjusted return on average tangible common equity was 13.76% compared to 12.08%.
Net Interest Income
Fully taxable equivalent net interest income totaled a record $70.5 million during the third quarter of 2022, an increase of $13.1 million, or 90.9% annualized. The fully taxable equivalent net interest margin widened 63 basis points to 4.01%, and average earning assets increased $179.7 million. The increase in average earning assets was primarily due to increases in average originated loans of $239.4 million and increases in average acquired loans of $167.8 million. The margin expansion was driven by a 64 basis point increase in earning asset yields, as a result of several increases in the federal funds rate since June 2022, and excess cash being deployed into higher-yielding originated loans. The cost of deposits totaled 0.18%, compared to 0.16% during the second quarter.Loans
Total loans increased $904.9 million to a record $5.7 billion at September 30, 2022 and included $537.7 million of loans acquired through the Rock Canyon Bank acquisition. Excluding the newly acquired loans, loans increased $367.2 million or 30.2% annualized led by originated commercial loan growth of $217.0 million or 25.5% annualized. We generated record quarterly loan fundings totaling $631.6 million, led by commercial loan fundings of $363.4 million.Asset Quality and Provision for Credit Losses
The Company recorded $12.7 million of provision expense, compared to $2.5 million last quarter. The quarter’s provision included $5.4 million of Day 1 allowance reserve funding for the Rock Canyon Bank loan portfolio. The remainder of the quarter’s provision expense was driven by strong loan growth and higher reserve requirements from changes in the CECL model’s underlying macro-economic forecast. Annualized net charge-offs totaled 0.01% of total loans, compared to 0.03% during the second quarter. Non-performing loans (comprised of non-accrual loans and non-accrual TDRs) totaled 0.26% of total loans compared to 0.20%, and non-performing assets totaled 0.32% of total loans and OREO, compared to 0.31%. The increases in the non-performing ratios were primarily driven by the inclusion of the Rock Canyon Bank portfolio. The allowance for credit losses as a percentage of loans totaled 1.15%, compared to 1.06% at June 30, 2022.Deposits
Average total deposits increased $161.8 million or 10.3% annualized to $6.4 billion for the third quarter 2022. Average transaction deposits (defined as total deposits less time deposits) increased $153.0 million or 11.1% annualized, and average non-interest bearing demand deposits increased $87.6 million or 14.1% annualized.The Rock Canyon Bank acquisition added $734.5 million of total deposits, including $653.0 million of transaction deposits and $81.5 million of time deposits on September 1, 2022. The mix of transaction deposits to total deposits increased three basis points to 87.7% at September 30, 2022. The loan to deposit ratio increased 634 basis points to 84.1%.
Non-Interest Income
Non-interest income totaled $17.4 million, an increase of $0.6 million. Service charges and bank card fees increased $0.5 million and banking center consolidation-related income increased $0.7 million. Other non-interest income increased $1.8 million largely due to $1.2 million of unrealized gains on equity method investments. These increases were largely offset by $2.5 million of lower mortgage banking income due to lower mortgage activity.Non-Interest Expense
Non-interest expense totaled $53.9 million, an increase of $8.4 million from the prior quarter. Included in the quarter were $7.0 million of non-recurring acquisition-related expenses with $4.6 million included in professional fees, $0.8 million in salaries and benefits, $0.5 million in occupancy and equipment, and $1.1 million in other non-interest expense. Included in the second quarter were $1.0 million of non-recurring acquisition-related expenses with $0.8 million in professional fees and $0.2 million in other non-interest expense. Excluding the acquisition-related expenses, salaries and benefits increased $0.9 million due to the addition of Rock Canyon Bank associates and one additional business day in the third quarter, occupancy and equipment increased $0.9 million and professional fees increased $0.6 million. The fully taxable equivalent efficiency ratio was 61.4% at September 30, 2022, compared to 61.5% at June 30, 2022. Adjusting for non-recurring acquisition-related expenses, the fully taxable equivalent efficiency ratio improved 671 basis points to 53.0% compared to 59.7% during the second quarter.Income tax expense decreased $0.4 million during the third quarter to $4.0 million driven by the decrease in the quarter’s pre-tax income. The effective tax rate was 20.1% and 17.6% for the third and second quarters, respectively. The lower rate compared to the statutory rate reflects the continued success of our tax strategies and tax-exempt income.
Capital
Capital ratios continue to be strong and in excess of federal bank regulatory agency “well capitalized” thresholds. The Tier 1 leverage ratios at September 30, 2022 for the consolidated company and NBH Bank were 10.45% and 9.18%, respectively. Shareholders’ equity totaled $919.4 million at September 30, 2022 increasing $103.9 million primarily due to the issuance of stock for the Rock Canyon Bank acquisition and an increase in retained earnings, net of dividends paid, of $8.8 million. These additions were partially offset by an increase in accumulated other comprehensive loss of $31.3 million due to fair market value fluctuations in the available-for-sale investment securities portfolio.Common book value per share increased $0.58 to $27.70 at September 30, 2022. Tangible common book value per share decreased $1.05 to $22.40 at September 30, 2022 as this quarter’s earnings net of dividends paid, were outpaced by a $0.94 increase in accumulated other comprehensive loss and the issuance of shares for the Rock Canyon Bank acquisition. Excluding accumulated other comprehensive loss, the tangible book value totaled $25.10, compared to $25.38 at June 30, 2022.
Year-Over-Year Review
(All comparisons refer to the first nine months of 2021, except as noted)Net income totaled $54.6 million or $1.77 per diluted share, compared to $70.8 million or $2.27 per diluted share over the first nine months of 2021. The increase in net interest income during the first nine months of 2022 was offset by higher provision expense and non-recurring acquisition-related expenses discussed in detail below. Fully taxable equivalent pre-provision net revenue increased $4.1 million to $85.4 million. The return on average tangible assets was 1.03% compared to 1.39% for the first nine months of 2021, and the return on average tangible common equity was 10.17% compared to 13.04%. Adjusting for acquisition-related provision expense and non-recurring acquisition-related expenses of $13.6 million during the first nine months of 2022, adjusted net income totaled $65.0 million or $2.11 per diluted share, and adjusted fully taxable equivalent pre-provision net revenue increased $12.3 million to $93.7 million. The adjusted return on average tangible assets was 1.23%, and the adjusted return on average tangible common equity was 12.10%.
Fully taxable equivalent net interest income totaled $175.8 million, an increase of $34.3 million or 24.2%. Average earning assets increased $354.0 million, or 5.5%, including average originated loan growth of $525.2 million. The fully taxable equivalent net interest margin widened 52 basis points to 3.44%, benefitting from a 48 basis point increase in earning asset yields to 3.62% and a seven basis point decrease in the cost of deposits to 0.17%.
Loans outstanding totaled a record $5.7 billion, increasing $1.3 billion or 29.4%, and included $537.7 million of loans acquired through the Rock Canyon Bank acquisition. Excluding the newly acquired loans, loans increased $762.5 million led by originated commercial loan growth of $582.2 million, or 19.4%. New loan fundings over the trailing 12 months totaled a record $2.0 billion, led by commercial loan fundings of $1.3 billion.
The Company recorded $14.9 million of credit loss provision expense during the first nine months of 2022, compared to a provision release of $9.4 million in the same period prior year. The provision expense was driven by record loan growth, higher reserve requirements from changes in the CECL model’s underlying macro-economic forecast and Day 1 reserve requirements for the acquired Rock Canyon Bank loan portfolio. Annualized net charge-offs remained consistent at 0.03% of total loans. Non-performing loans to total loans improved three basis points to 0.26% at September 30, 2022, and non-performing assets to total loans and OREO improved seven basis points to 0.32%. The allowance for credit losses totaled 1.15% of total loans, compared to 1.11% at September 30, 2021.
Average total deposits increased $285.0 million or 4.7% to $6.3 billion. Average transaction deposits increased $417.0 million or 8.2%, and average non-interest bearing demand deposits increased $167.4 million or 7.2%. The mix of transaction deposits to total deposits increased by 200 basis points to 87.7% at September 30, 2022, and the mix of non-interest bearing demand deposits to total deposits increased 30 basis points to 40.2%.
Non-interest income totaled $53.2 million, a decrease of $34.0 million or 39.0%, largely driven by $31.9 million of lower mortgage banking income due to lower refinance activity in 2022, as well as competition driving tighter gain on sale margins. Service charges and bank card fees increased a combined $1.1 million compared to the first nine months of 2021. Banking center consolidation-related income decreased $2.0 million, and other non-interest income decreased $1.2 million largely due to market adjustments on company-owned life insurance.
Non-interest expense totaled $143.6 million, a decrease of $3.8 million or 2.5%. Included in the first nine months of 2022 were $8.3 million of non-recurring acquisition-related expenses, with $5.7 million included in professional fees, $0.8 million included in salaries and benefits, $0.5 million included in occupancy and equipment and $1.3 million included in other non-interest expense. Excluding non-recurring acquisition-related expenses, salaries and benefits decreased $9.7 million largely due to lower mortgage banking-related compensation, professional fees decreased $2.2 million and problem asset workout expenses decreased $1.3 million. Included in the first nine months 2021 was banking center consolidation-related expense of $1.6 million.
Income tax expense totaled $12.0 million, a decrease of $4.1 million from the same period prior year. The effective tax rate was 18.0% for the first nine months of 2022, compared to 18.5%.
Conference Call
Management will host a conference call to review the results at 11:00 a.m. Eastern Time on Friday, October 28, 2022. Interested parties may listen to this call by dialing (800) 207-0148 using the participant passcode of 505767 and asking for the NBHC Q3 2022 Earnings Call. The earnings release and a link to the replay of the call will be available on the Company’s website at www.nationalbankholdings.com by visiting the investor relations area.About National Bank Holdings Corporation
National Bank Holdings Corporation is a bank holding company created to build a leading community bank franchise, delivering high quality client service and committed to stakeholder results. Through its bank subsidiaries, NBH Bank and Bank of Jackson Hole Trust, National Bank Holdings Corporation operates a network of 98 banking centers, serving individual consumers, small, medium and large businesses, and government and non-profit entities. Its banking centers are located in its core footprint of Colorado, the greater Kansas City region, Utah, Wyoming, Texas, New Mexico and Idaho. Its comprehensive residential mortgage banking group primarily serves the bank’s core footprint. Its trust business is operated in its core footprint under the Bank of Jackson Hole Trust charter. NBH Bank operates under a single state charter through the following brand names as divisions of NBH Bank: in Colorado, Community Banks of Colorado and Community Banks Mortgage; in Kansas and Missouri, Bank Midwest and Bank Midwest Mortgage; in Texas, Utah and New Mexico, Hillcrest Bank and Hillcrest Bank Mortgage; and in Wyoming, Bank of Jackson Hole and Bank of Jackson Hole Mortgage. For the recently acquired banking centers in Idaho, NBH Bank will operate as Bright Bank until integration. Additional information about National Bank Holdings Corporation can be found at www.nationalbankholdings.com.For more information visit: cobnks.com, bankmw.com, hillcrestbank.com, bankofjacksonhole.com, or nbhbank.com. Or connect with any of our brands on LinkedIn.
About Non-GAAP Financial Measures
Certain of the financial measures and ratios we present, including “tangible assets,” “return on average tangible assets,” “tangible common equity,” “return on average tangible common equity,” “tangible common book value per share,” “tangible common book value, excluding accumulated other comprehensive loss, net of tax,” “tangible common book value per share, excluding accumulated other comprehensive loss, net of tax,” “tangible common equity to tangible assets,” “non-interest expense adjusted for CDI asset amortization and acquisition-related expenses,” “non-interest expense adjusted for acquisition-related expenses,” “efficiency ratio adjusted for CDI and acquisition-related expenses,” “adjusted net income,” “adjusted earnings per share – diluted,” “adjusted net income excluding core deposit intangible amortization expense, after tax,” “adjusted return on average tangible assets,” “adjusted return on average tangible common equity,” “pre-provision net revenue,” “pre-provision net revenue adjusted for acquisition-related expenses,” and “fully taxable equivalent” metrics, are supplemental measures that are not required by, or are not presented in accordance with, U.S. generally accepted accounting principles (GAAP). We refer to these financial measures and ratios as “non-GAAP financial measures.” We consider the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenditures or assets that we believe are not indicative of our primary business operating results or by presenting certain metrics on a fully taxable equivalent basis. We believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present and future periods.These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and you should not rely on non-GAAP financial measures alone as measures of our performance. The non-GAAP financial measures we present may differ from non-GAAP financial measures used by our peers or other companies. We compensate for these limitations by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance.
A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contain words such as “anticipate,” “believe,” “can,” “would,” “should,” “could,” “may,” “predict,” “seek,” “potential,” “will,” “estimate,” “target,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “intend” or similar expressions that relate to the Company’s strategy, plans or intentions. Forward-looking statements involve certain important risks, uncertainties and other factors, any of which could cause actual results to differ materially from those in such statements. Such factors include, without limitation, the “Risk Factors” referenced in our most recent Form 10-K filed with the Securities and Exchange Commission (SEC), other risks and uncertainties listed from time to time in our reports and documents filed with the SEC, and the following factors: difficulties and delays in integrating the NBHC, Community Bancorporation, and Bancshares of Jackson Hole Incorporated businesses or fully realizing cost savings and other benefits; business disruption following the mergers; ability to execute our business strategy; business and economic conditions; effects of any potential government shutdowns; economic, market, operational, liquidity, credit and interest rate risks associated with the Company’s business; effects of any changes in trade, monetary and fiscal policies and laws; changes imposed by regulatory agencies to increase capital standards; effects of inflation, as well as, interest rate, securities market and monetary supply fluctuations; changes in the economy or supply-demand imbalances affecting local real estate values; changes in consumer spending, borrowings and savings habits; with respect to our mortgage business, the inability to negotiate fees with investors for the purchase of our loans or our obligation to indemnify purchasers or repurchase related loans; the Company’s ability to identify potential candidates for, consummate, integrate and realize operating efficiencies from, acquisitions, consolidations and other expansion opportunities; the Company's ability to realize anticipated benefits from enhancements or updates to its core operating systems from time to time without significant change in client service or risk to the Company's control environment; the Company's dependence on information technology and telecommunications systems of third-party service providers and the risk of systems failures, interruptions or breaches of security; the Company’s ability to achieve organic loan and deposit growth and the composition of such growth; changes in sources and uses of funds; increased competition in the financial services industry; the effect of changes in accounting policies and practices; the share price of the Company’s stock; the Company's ability to realize deferred tax assets or the need for a valuation allowance; the effects of tax legislation, including the potential of future increases to prevailing tax rules, or challenges to our positions; continued consolidation in the financial services industry; ability to maintain or increase market share and control expenses; costs and effects of changes in laws and regulations and of other legal and regulatory developments; technological changes; the timely development and acceptance of new products and services, including in the digital technology space our digital solution 2UniFi; the Company’s continued ability to attract, hire and maintain qualified personnel; ability to implement and/or improve operational management and other internal risk controls and processes and reporting system and procedures; regulatory limitations on dividends from the Company's bank subsidiary; changes in estimates of future credit reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; widespread natural and other disasters, pandemics, dislocations, political instability, acts of war or terrorist activities, cyberattacks or international hostilities; a cybersecurity incident, data breach or a failure of a key information technology system; adverse effects due to the novel Coronavirus Disease 2019 (COVID-19) on the Company and its clients, counterparties, employees, and third-party service providers, and the adverse impacts on our business, financial position, results of operations, and prospects; impact of reputational risk; and success at managing the risks involved in the foregoing items. The Company can give no assurance that any goal or plan or expectation set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements. The forward-looking statements are made as of the date of this press release, and the Company does not intend, and assumes no obligation, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law.Contact:
Analysts/Institutional Investors: Aldis Birkans, Chief Financial Officer, (720) 554-6640, ir@nationalbankholdings.com
Media: Jody Soper, Chief Marketing Officer, (303) 784-5925, Jody.Soper@nbhbank.com
NATIONAL BANK HOLDINGS CORPORATION
FINANCIAL SUMMARY
Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except share and per share data)For the three months ended For the nine months ended September 30, June 30, September 30, September 30, September 30, 2022 2022 2021 2022 2021 Total interest and dividend income $ 72,369 $ 58,836 $ 50,801 $ 180,730 $ 148,464 Total interest expense 3,278 2,819 3,232 8,961 10,806 Net interest income 69,091 56,017 47,569 171,769 137,658 Taxable equivalent adjustment 1,409 1,336 1,315 4,058 3,862 Net interest income FTE(1) 70,500 57,353 48,884 175,827 141,520 Provision expense (release) for credit losses 12,678 2,504 — 14,860 (9,425 ) Net interest income after provision for credit losses FTE(1) 57,822 54,849 48,884 160,967 150,945 Non-interest income: Service charges 4,326 3,956 3,947 11,992 10,989 Bank card fees 4,681 4,541 4,530 13,345 13,217 Mortgage banking income 4,474 6,948 16,615 21,088 52,973 Other non-interest income 3,100 1,252 2,266 5,199 6,364 OREO-related income 1 5 — 6 35 Banking center consolidation-related income 776 60 1,164 1,544 3,571 Total non-interest income 17,358 16,762 28,522 53,174 87,149 Non-interest expense: Salaries and benefits 30,540 28,776 32,556 88,652 97,518 Occupancy and equipment 8,026 6,665 6,469 21,087 19,150 Professional fees 5,810 1,486 3,251 8,110 4,642 Other non-interest expense 9,342 8,180 7,624 24,874 21,496 Problem asset workout 215 144 1,119 522 1,851 (Gain) loss on sale of OREO, net (378 ) 5 — (648 ) 192 Core deposit intangible asset amortization 383 296 295 975 887 Banking center consolidation-related expense — — — — 1,589 Total non-interest expense 53,938 45,552 51,314 143,572 147,325 Income before income taxes FTE(1) 21,242 26,059 26,092 70,569 90,769 Taxable equivalent adjustment 1,409 1,336 1,315 4,058 3,862 Income before income taxes 19,833 24,723 24,777 66,511 86,907 Income tax expense 3,994 4,361 4,952 11,958 16,070 Net income $ 15,839 $ 20,362 $ 19,825 $ 54,553 $ 70,837 Earnings per share - basic $ 0.51 $ 0.67 $ 0.64 $ 1.78 $ 2.29 Earnings per share - diluted 0.50 0.67 0.64 1.77 2.27 (1) Net interest income is presented on a GAAP basis and fully taxable equivalent (FTE) basis, as the Company believes this non-GAAP measure is the preferred industry measurement for this item. The FTE adjustment is for the tax benefit on certain tax exempt loans using the federal tax rate of 21% for each period presented. NATIONAL BANK HOLDINGS CORPORATION
Consolidated Statements of Financial Condition (Unaudited)
(Dollars in thousands, except share and per share data)September 30, 2022 June 30, 2022 December 31, 2021 September 30, 2021 ASSETS Cash and cash equivalents $ 256,207 $ 448,375 $ 845,695 $ 807,370 Investment securities available-for-sale 730,791 805,858 691,847 657,833 Investment securities held-to-maturity 606,245 582,650 609,012 642,636 Non-marketable securities 64,004 59,754 50,740 46,964 Loans 5,721,985 4,817,070 4,513,383 4,421,760 Allowance for credit losses (65,623 ) (50,860 ) (49,694 ) (49,155 ) Loans, net 5,656,362 4,766,210 4,463,689 4,372,605 Loans held for sale 33,043 48,816 139,142 158,066 Other real estate owned 3,695 4,992 7,005 4,325 Premises and equipment, net 105,801 103,690 96,747 94,114 Goodwill 167,882 115,027 115,027 115,027 Intangible assets, net 30,843 14,568 12,322 11,621 Other assets 268,048 218,059 182,785 190,430 Total assets $ 7,922,921 $ 7,167,999 $ 7,214,011 $ 7,100,991 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Non-interest bearing demand deposits $ 2,735,832 $ 2,454,740 $ 2,506,265 $ 2,447,099 Interest bearing demand deposits 597,035 597,000 555,401 546,597 Savings and money market 2,631,855 2,364,681 2,332,591 2,264,083 Total transaction deposits 5,964,722 5,416,421 5,394,257 5,257,779 Time deposits 838,830 777,977 833,916 876,841 Total deposits 6,803,552 6,194,398 6,228,173 6,134,620 Securities sold under agreements to repurchase 20,044 24,396 22,768 21,427 Long-term debt 39,559 39,532 39,478 — Other liabilities 140,340 94,122 83,486 100,228 Total liabilities 7,003,495 6,352,448 6,373,905 6,256,275 Shareholders' equity: Common stock 515 515 515 515 Additional paid in capital 1,079,560 1,014,330 1,014,294 1,013,064 Retained earnings 323,448 314,616 289,876 273,900 Treasury stock (394,758 ) (455,909 ) (457,616 ) (441,366 ) Accumulated other comprehensive (loss) income, net of tax (89,339 ) (58,001 ) (6,963 ) (1,397 ) Total shareholders' equity 919,426 815,551 840,106 844,716 Total liabilities and shareholders' equity $ 7,922,921 $ 7,167,999 $ 7,214,011 $ 7,100,991 SHARE DATA Average basic shares outstanding 31,259,188 30,225,898 30,338,265 30,800,590 Average diluted shares outstanding 31,531,075 30,493,265 30,715,500 31,064,815 Ending shares outstanding 33,189,253 30,075,175 29,958,764 30,288,131 Common book value per share $ 27.70 $ 27.12 $ 28.04 $ 27.89 Tangible common book value per share(1) (non-GAAP) 22.40 23.45 24.33 24.20 Tangible common book value per share, excluding accumulated other comprehensive income(1) (non-GAAP) 25.10 25.38 24.56 24.24 CAPITAL RATIOS Average equity to average assets 11.69% 11.32% 11.88% 12.07% Tangible common equity to tangible assets(1) 9.60% 9.99% 10.26% 10.49% Tier 1 leverage ratio 10.45% 10.54% 10.39% 10.43% Common equity tier 1 risk-based capital ratio 12.75% 13.75% 14.26% 14.57% Tier 1 risk-based capital ratio 12.75% 13.75% 14.26% 14.57% Total risk-based capital ratio 14.34% 15.35% 15.92% 15.48% (1) Represents a non-GAAP financial measure. See non-GAAP reconciliations below. NATIONAL BANK HOLDINGS CORPORATION
Loan Portfolio
(Dollars in thousands)Period End Loan Balances by Type
September 30, 2022 September 30, 2022 vs. June 30, 2022 vs. September 30, 2021 September 30, 2022 June 30, 2022 % Change September 30, 2021 % Change Originated: Commercial: Commercial and industrial $ 1,724,469 $ 1,588,241 8.6 % $ 1,429,275 20.7 % Municipal and non-profit 968,539 996,223 (2.8 )% 878,988 10.2 % Owner-occupied commercial real estate 631,783 592,334 6.7 % 504,415 25.3 % Food and agribusiness 265,835 196,829 35.1 % 195,766 35.8 % Total commercial 3,590,626 3,373,627 6.4 % 3,008,444 19.4 % Commercial real estate non-owner occupied 731,293 620,133 17.9 % 605,143 20.8 % Residential real estate 750,669 682,272 10.0 % 608,158 23.4 % Consumer 17,027 17,486 (2.6 )% 17,735 (4.0) % Total originated 5,089,615 4,693,518 8.4 % 4,239,480 20.1 % Acquired: Commercial: Commercial and industrial 82,324 15,056 >100 % 17,521 >100 % Municipal and non-profit 326 330 (1.2) % 347 (6.1) % Owner-occupied commercial real estate 176,385 18,849 >100 % 37,335 >100 % Food and agribusiness 73,822 2,849 >100 % 3,653 >100 % Total commercial 332,857 37,084 >100 % 58,856 >100 % Commercial real estate non-owner occupied 219,109 42,771 >100 % 65,784 >100 % Residential real estate 79,477 43,486 82.8 % 57,344 38.6 % Consumer 927 211 >100 % 296 >100 % Total acquired 632,370 123,552 >100 % 182,280 >100 % Total loans $ 5,721,985 $ 4,817,070 18.8 % $ 4,421,760 29.4 %
Loan Fundings(1)Third quarter Second quarter First quarter Fourth quarter Third quarter 2022 2022 2022 2021 2021 Commercial: Commercial and industrial $ 201,106 $ 152,550 $ 169,168 $ 229,529 $ 196,289 Municipal and non-profit 20,845 81,428 49,906 101,450 43,516 Owner occupied commercial real estate 65,125 78,905 67,597 28,914 53,445 Food and agribusiness 76,293 (4,186 ) 18,620 11,016 8,442 Total commercial 363,369 308,697 305,291 370,909 301,692 Commercial real estate non-owner occupied 166,739 88,612 63,416 46,128 55,392 Residential real estate 99,951 93,220 49,040 55,873 54,442 Consumer 1,505 1,989 1,904 2,524 1,810 Total $ 631,564 $ 492,518 $ 419,651 $ 475,434 $ 413,336 (1) Loan fundings are defined as closed end funded loans and net fundings under revolving lines of credit. Net fundings under revolving lines of credit were $124,834, $21,762, $66,430, $138,777 and $29,154 as of the third, second and first quarters of 2022 and the fourth and third quarters of 2021, respectively. NATIONAL BANK HOLDINGS CORPORATION
Summary of Net Interest Margin
(Dollars in thousands)For the three months ended For the three months ended For the three months ended September 30, 2022 June 30, 2022 September 30, 2021 Average Average Average Average Average Average balance Interest rate balance Interest rate balance Interest rate Interest earning assets: Originated loans FTE(1)(2) $ 4,834,206 $ 58,153 4.77 % $ 4,594,799 $ 47,787 4.17 % $ 4,137,001 $ 41,865 4.01 % Acquired loans 295,893 6,581 8.82 % 128,107 4,403 13.79 % 187,419 3,796 8.04 % Loans held for sale 39,532 551 5.53 % 78,574 881 4.50 % 157,381 1,166 2.94 % Investment securities available-for-sale 865,875 4,247 1.96 % 898,928 3,808 1.69 % 656,757 2,572 1.57 % Investment securities held-to-maturity 605,356 2,212 1.46 % 559,712 2,067 1.48 % 671,053 2,178 1.30 % Other securities 14,909 212 5.69 % 14,591 211 5.78 % 14,657 210 5.73 % Interest earning deposits and securities purchased under agreements to resell 326,277 1,822 2.22 % 527,589 1,015 0.77 % 799,779 329 0.16 % Total interest earning assets FTE(2) $ 6,982,048 $ 73,778 4.19 % $ 6,802,300 $ 60,172 3.55 % $ 6,624,047 $ 52,116 3.12 % Cash and due from banks $ 81,112 $ 75,616 $ 77,498 Other assets 440,516 402,529 463,553 Allowance for credit losses (54,610 ) (49,126 ) (48,957 ) Total assets $ 7,449,066 $ 7,231,319 $ 7,116,141 Interest bearing liabilities: Interest bearing demand, savings and money market deposits $ 3,058,463 $ 1,829 0.24 % $ 2,992,986 $ 1,494 0.20 % $ 2,803,071 $ 1,516 0.21 % Time deposits 799,759 1,116 0.55 % 790,998 991 0.50 % 903,935 1,711 0.75 % Securities sold under agreements to repurchase 22,183 7 0.13 % 21,761 6 0.11 % 19,681 5 0.10 % Long-term debt 39,543 326 3.27 % 39,516 328 3.33 % — — 0.00 % Total interest bearing liabilities $ 3,919,948 $ 3,278 0.33 % $ 3,845,261 $ 2,819 0.29 % $ 3,726,687 $ 3,232 0.34 % Demand deposits $ 2,557,286 $ 2,469,729 $ 2,422,976 Other liabilities 100,983 96,715 107,233 Total liabilities 6,578,217 6,411,705 6,256,896 Shareholders' equity 870,849 819,614 859,245 Total liabilities and shareholders' equity $ 7,449,066 $ 7,231,319 $ 7,116,141 Net interest income FTE(2) $ 70,500 $ 57,353 $ 48,884 Interest rate spread FTE(2) 3.86 % 3.26 % 2.78 % Net interest earning assets $ 3,062,100 $ 2,957,039 $ 2,897,360 Net interest margin FTE(2) 4.01 % 3.38 % 2.93 % Average transaction deposits $ 5,615,749 $ 5,462,715 $ 5,226,047 Average total deposits 6,415,508 6,253,713 6,129,982 Ratio of average interest earning assets to average interest bearing liabilities 178.12 % 176.90 % 177.75 % (1) Originated loans are net of deferred loan fees, less costs, which are included in interest income over the life of the loan. (2) Presented on a fully taxable equivalent basis using the statutory tax rate of 21%. The tax equivalent adjustments included above are $1,409, $1,336 and $1,315 for the three months ended September 30, 2022, June 30, 2022 and September 30, 2021, respectively. NATIONAL BANK HOLDINGS CORPORATION
Summary of Net Interest Margin
(Dollars in thousands)For the nine months ended September 30, 2022 For the nine months ended September 30, 2021 Average Average Average Average balance Interest rate balance Interest rate Interest earning assets: Originated loans FTE(1)(2) $ 4,598,705 $ 148,025 4.30 % $ 4,073,529 $ 121,461 3.99 % Acquired loans 191,089 13,552 9.48 % 212,151 12,847 8.10 % Loans held for sale 70,384 2,188 4.16 % 182,385 3,896 2.86 % Investment securities available-for-sale 839,235 10,904 1.73 % 660,399 7,454 1.50 % Investment securities held-to-maturity 585,023 6,291 1.43 % 555,818 5,317 1.28 % Other securities 14,698 632 5.73 % 15,180 629 5.52 % Interest earning deposits and securities purchased under agreements to resell 530,841 3,196 0.80 % 776,472 722 0.12 % Total interest earning assets FTE(2) $ 6,829,975 $ 184,788 3.62 % $ 6,475,934 $ 152,326 3.14 % Cash and due from banks $ 78,710 $ 78,953 Other assets 428,374 476,856 Allowance for credit losses (51,125 ) (54,249 ) Total assets $ 7,285,934 $ 6,977,494 Interest bearing liabilities: Interest bearing demand, savings and money market deposits $ 2,996,317 $ 4,760 0.21 % $ 2,746,657 $ 4,740 0.23 % Time deposits 804,110 3,201 0.53 % 936,088 6,050 0.86 % Securities sold under agreements to repurchase 22,236 20 0.12 % 20,310 16 0.11 % Long-term debt 39,516 980 3.32 % — — 0.00 % Total interest bearing liabilities $ 3,862,179 $ 8,961 0.31 % $ 3,703,055 $ 10,806 0.39 % Demand deposits $ 2,487,522 $ 2,320,160 Other liabilities 91,992 108,503 Total liabilities 6,441,693 6,131,718 Shareholders' equity 844,241 845,776 Total liabilities and shareholders' equity $ 7,285,934 $ 6,977,494 Net interest income FTE(2) $ 175,827 $ 141,520 Interest rate spread FTE(2) 3.31 % 2.75 % Net interest earning assets $ 2,967,796 $ 2,772,879 Net interest margin FTE(2) 3.44 % 2.92 % Average transaction deposits $ 5,483,839 $ 5,066,817 Average total deposits 6,287,949 6,002,905 Ratio of average interest earning assets to average interest bearing liabilities 176.84 % 174.88 % (1) Originated loans are net of deferred loan fees, less costs, which are included in interest income over the life of the loan. (2) Presented on a fully taxable equivalent basis using the statutory tax rate of 21%. The tax equivalent adjustments included above are $4,058 and $3,862 for the nine months ended September 30, 2022 and September 30, 2021, respectively. NATIONAL BANK HOLDINGS CORPORATION
Allowance for Credit Losses and Asset Quality
(Dollars in thousands)Allowance for Credit Losses Analysis
As of and for the three months ended September 30, 2022 June 30, 2022 September 30, 2021 Beginning allowance for credit losses $ 50,860 $ 48,810 $ 49,030 Charge-offs (253 ) (451 ) (322 ) Recoveries 66 115 101 Provision expense 14,950 2,386 346 Ending allowance for credit losses ("ACL") $ 65,623 $ 50,860 $ 49,155 Ratio of annualized net charge-offs to average total loans during the period 0.01% 0.03% 0.02% Ratio of ACL to total loans outstanding at period end 1.15% 1.06% 1.11% Ratio of ACL to total non-performing loans at period end 447.72% 515.72% 382.59% Total loans $ 5,721,985 $ 4,817,070 $ 4,421,760 Average total loans during the period 5,114,044 4,711,416 4,352,557 Total non-performing loans 14,657 9,862 12,848
Past Due and Non-accrual LoansSeptember 30, 2022 June 30, 2022 September 30, 2021 Loans 30-89 days past due and still accruing interest $ 1,548 $ 1,781 $ 1,302 Loans 90 days past due and still accruing interest 332 194 495 Non-accrual loans 14,657 9,862 12,848 Total past due and non-accrual loans $ 16,537 $ 11,837 $ 14,645 Total 90 days past due and still accruing interest and non-accrual loans to total loans 0.26% 0.21% 0.30%
Asset Quality DataSeptember 30, 2022 June 30, 2022 September 30, 2021 Non-performing loans $ 14,657 $ 9,862 $ 12,848 OREO 3,695 4,992 4,325 Total non-performing assets $ 18,352 $ 14,854 $ 17,173 Accruing restructured loans $ 4,610 $ 7,208 $ 11,135 Total non-performing loans to total loans 0.26% 0.20% 0.29% Total non-performing assets to total loans and OREO 0.32% 0.31% 0.39% NATIONAL BANK HOLDINGS CORPORATION
Key Metrics(1)As of and for the three months ended As of and for the nine months ended September 30, June 30, September 30, September 30, September 30, 2022 2022 2021 2022 2021 Return on average assets 0.84% 1.13% 1.11% 1.00% 1.36% Return on average tangible assets(2) 0.87% 1.16% 1.14% 1.03% 1.39% Return on average tangible assets, adjusted(2) 1.39% 1.20% 1.14% 1.23% 1.39% Return on average equity 7.22% 9.96% 9.15% 8.64% 11.20% Return on average tangible common equity(2) 8.66% 11.64% 10.65% 10.17% 13.04% Return on average tangible common equity, adjusted(2) 13.76% 12.08% 10.65% 12.10% 13.04% Loan to deposit ratio (end of period) 84.10% 77.76% 72.08% 84.10% 72.08% Non-interest bearing deposits to total deposits (end of period) 40.21% 39.63% 39.89% 40.21% 39.89% Net interest margin(3) 3.93% 3.30% 2.85% 3.36% 2.84% Net interest margin FTE(2)(3) 4.01% 3.38% 2.93% 3.44% 2.92% Interest rate spread FTE(2)(4) 3.86% 3.26% 2.78% 3.31% 2.75% Yield on earning assets(5) 4.11% 3.47% 3.04% 3.54% 3.07% Yield on earning assets FTE(2)(5) 4.19% 3.55% 3.12% 3.62% 3.14% Cost of interest bearing liabilities 0.33% 0.29% 0.34% 0.31% 0.39% Cost of deposits 0.18% 0.16% 0.21% 0.17% 0.24% Non-interest income to total revenue FTE(2) 19.76% 22.62% 36.85% 23.22% 38.11% Non-interest expense to average assets 2.87% 2.53% 2.86% 2.63% 2.82% Efficiency ratio 62.39% 62.59% 67.44% 63.83% 65.53% Efficiency ratio FTE(2) 61.39% 61.46% 66.29% 62.69% 64.43% Efficiency ratio FTE, adjusted(2) 52.99% 59.70% 65.91% 58.66% 64.04% Pre-provision net revenue $ 32,511 $ 27,227 $ 24,777 $ 81,371 $ 77,482 Pre-provision net revenue FTE(2) 33,920 28,563 26,092 85,429 81,344 Pre-provision net revenue FTE, adjusted(2) 40,916 29,569 26,092 93,685 81,344 Total Loans Asset Quality Data(6)(7)(8) Non-performing loans to total loans 0.26% 0.20% 0.29% 0.26% 0.29% Non-performing assets to total loans and OREO 0.32% 0.31% 0.39% 0.32% 0.39% Allowance for credit losses to total loans 1.15% 1.06% 1.11% 1.15% 1.11% Allowance for credit losses to non-performing loans 447.72% 515.72% 382.59% 447.72% 382.59% Net charge-offs to average loans 0.01% 0.03% 0.02% 0.03% 0.03% (1) Ratios are annualized. (2) Ratio represents non-GAAP financial measure. See non-GAAP reconciliations below. (3) Net interest margin represents net interest income, including accretion income on interest earning assets, as a percentage of average interest earning assets. (4) Interest rate spread represents the difference between the weighted average yield on interest earning assets and the weighted average cost of interest bearing liabilities. (5) Interest earning assets include assets that earn interest/accretion or dividends. Any market value adjustments on investment securities or loans are excluded from interest earning assets. (6) Non-performing loans consist of non-accruing loans and restructured loans on non-accrual. (7) Non-performing assets include non-performing loans and other real estate owned. (8) Total loans are net of unearned discounts and fees. NATIONAL BANK HOLDINGS CORPORATION
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
(Dollars in thousands, except share and per share data)Tangible Common Book Value Ratios
September 30, 2022 June 30, 2022 December 31, 2021 September 30, 2021 Total shareholders' equity $ 919,426 $ 815,551 $ 840,106 $ 844,716 Less: goodwill and core deposit intangible ("CDI") assets, net (186,608 ) (120,800 ) (121,392 ) (121,688 ) Add: deferred tax liability related to goodwill 10,755 10,527 10,070 9,841 Tangible common equity (non-GAAP) $ 743,573 $ 705,278 $ 728,784 $ 732,869 Total assets $ 7,922,921 $ 7,167,999 $ 7,214,011 $ 7,100,991 Less: goodwill and CDI assets, net (186,608 ) (120,800 ) (121,392 ) (121,688 ) Add: deferred tax liability related to goodwill 10,755 10,527 10,070 9,841 Tangible assets (non-GAAP) $ 7,747,068 $ 7,057,726 $ 7,102,689 $ 6,989,144 Tangible common equity to tangible assets calculations: Total shareholders' equity to total assets 11.60% 11.38% 11.65% 11.90% Less: impact of goodwill and CDI assets, net (2.00)% (1.39)% (1.39)% (1.41)% Tangible common equity to tangible assets (non-GAAP) 9.60% 9.99% 10.26% 10.49% Tangible common book value per share calculations: Tangible common equity (non-GAAP) $ 743,573 $ 705,278 $ 728,784 $ 732,869 Divided by: ending shares outstanding 33,189,253 30,075,175 29,958,764 30,288,131 Tangible common book value per share (non-GAAP) $ 22.40 $ 23.45 $ 24.33 $ 24.20 Tangible common book value per share, excluding accumulated other comprehensive income calculations: Tangible common equity (non-GAAP) $ 743,573 $ 705,278 $ 728,784 $ 732,869 Accumulated other comprehensive loss, net of tax 89,339 58,001 6,963 1,397 Tangible common book value, excluding accumulated other comprehensive loss, net of tax (non-GAAP) 832,912 763,279 735,747 734,266 Divided by: ending shares outstanding 33,189,253 30,075,175 29,958,764 30,288,131 Tangible common book value per share, excluding accumulated other comprehensive loss, net of tax (non-GAAP) $ 25.10 $ 25.38 $ 24.56 $ 24.24 NATIONAL BANK HOLDINGS CORPORATION
(Dollars in thousands, except share and per share data)Return on Average Tangible Assets and Return on Average Tangible Equity
As of and for the three months ended As of and for the nine months ended September 30, June 30, September 30, September 30, September 30, 2022 2022 2021 2022 2021 Net income $ 15,839 $ 20,362 $ 19,825 $ 54,553 $ 70,837 Add: impact of CDI amortization expense, after tax 295 227 227 751 682 Net income excluding the impact of CDI amortization expense, after tax $ 16,134 $ 20,589 $ 20,052 $ 55,304 $ 71,519 Net income excluding impact of CDI amortization expense, after tax $ 16,134 $ 20,589 $ 20,052 $ 55,304 $ 71,519 Add: acquisition-related adjustments, after tax (non-GAAP)(1) 9,510 773 — 10,480 — Net income excluding impact of CDI amortization expense adjusted, after tax (non-GAAP) (1) $ 25,644 $ 21,362 $ 20,052 $ 65,784 $ 71,519 Average assets $ 7,449,066 $ 7,231,319 $ 7,116,141 $ 7,285,934 $ 6,977,494 Less: average goodwill and CDI asset, net of deferred tax liability related to goodwill (131,490 ) (110,446 ) (112,026 ) (117,485 ) (112,320 ) Average tangible assets (non-GAAP) $ 7,317,576 $ 7,120,873 $ 7,004,115 $ 7,168,449 $ 6,865,174 Average shareholders' equity $ 870,849 $ 819,614 $ 859,245 $ 844,241 $ 845,776 Less: average goodwill and CDI asset, net of deferred tax liability related to goodwill (131,490 ) (110,446 ) (112,026 ) (117,485 ) (112,320 ) Average tangible common equity (non-GAAP) $ 739,359 $ 709,168 $ 747,219 $ 726,756 $ 733,456 Return on average assets (non-GAAP) 0.84% 1.13% 1.11% 1.00% 1.36% Return on average tangible assets (non-GAAP) 0.87% 1.16% 1.14% 1.03% 1.39% Adjusted return on average tangible assets (non-GAAP) 1.39% 1.20% 1.14% 1.23% 1.39% Return on average equity (non-GAAP) 7.22% 9.96% 9.15% 8.64% 11.20% Return on average tangible common equity (non-GAAP) 8.66% 11.64% 10.65% 10.17% 13.04% Adjusted return on average tangible common equity (non-GAAP) 13.76% 12.08% 10.65% 12.10% 13.04% (1) Acquisition-related adjustments: Provision expense adjustments: CECL day 1 provision expense (non-GAAP) $ 5,358 $ — $ — $ 5,358 $ — Non-interest expense adjustments: Acquisition-related expenses (non-GAAP) 6,996 1,006 — 8,256 $ — Acquisition-related adjustments before tax (non-GAAP) 12,354 1,006 — 13,614 — Tax expense impact (2,844 ) (233 ) — (3,134 ) — Acquisition-related adjustments, after tax (non-GAAP) $ 9,510 $ 773 $ — $ 10,480 $ —
Fully Taxable Equivalent Yield on Earning Assets and Net Interest MarginAs of and for the three months ended As of and for the nine months ended September 30, June 30, September 30, September 30, September 30, 2022 2022 2021 2022 2021 Interest income $ 72,369 $ 58,836 $ 50,801 $ 180,730 $ 148,464 Add: impact of taxable equivalent adjustment 1,409 1,336 1,315 4,058 3,862 Interest income FTE (non-GAAP) $ 73,778 $ 60,172 $ 52,116 $ 184,788 $ 152,326 Net interest income $ 69,091 $ 56,017 $ 47,569 $ 171,769 $ 137,658 Add: impact of taxable equivalent adjustment 1,409 1,336 1,315 4,058 3,862 Net interest income FTE (non-GAAP) $ 70,500 $ 57,353 $ 48,884 $ 175,827 $ 141,520 Average earning assets $ 6,982,048 $ 6,802,300 $ 6,624,047 $ 6,829,975 $ 6,475,934 Yield on earning assets 4.11% 3.47% 3.04% 3.54% 3.07% Yield on earning assets FTE (non-GAAP) 4.19% 3.55% 3.12% 3.62% 3.14% Net interest margin 3.93% 3.30% 2.85% 3.36% 2.84% Net interest margin FTE (non-GAAP) 4.01% 3.38% 2.93% 3.44% 2.92%
Efficiency Ratio and Pre-Provision Net RevenueAs of and for the three months ended As of and for the nine months ended September 30, June 30, September 30, September 30, September 30, 2022 2022 2021 2022 2021 Net interest income $ 69,091 $ 56,017 $ 47,569 $ 171,769 $ 137,658 Add: impact of taxable equivalent adjustment 1,409 1,336 1,315 4,058 3,862 Net interest income FTE (non-GAAP) $ 70,500 $ 57,353 $ 48,884 $ 175,827 $ 141,520 Non-interest income $ 17,358 $ 16,762 $ 28,522 $ 53,174 $ 87,149 Non-interest expense $ 53,938 $ 45,552 $ 51,314 $ 143,572 $ 147,325 Less: CDI asset amortization (383 ) (296 ) (295 ) (975 ) (887 ) Less: Acquisition-related expenses (6,996 ) (1,006 ) — (8,256 ) — Non-interest expense adjusted for CDI asset amortization and acquisition-related expenses (non-GAAP) $ 46,559 $ 44,250 $ 51,019 $ 134,341 $ 146,438 Non-interest expense $ 53,938 $ 45,552 $ 51,314 $ 143,572 $ 147,325 Less: Acquisition-related expenses (6,996 ) (1,006 ) — (8,256 ) — Non-interest expense adjusted for acquisition-related expenses (non-GAAP) $ 46,942 $ 44,546 $ 51,314 $ 135,316 $ 147,325 Efficiency ratio 62.39% 62.59% 67.44% 63.83% 65.53% Efficiency ratio FTE (non-GAAP) 61.39% 61.46% 66.29% 62.69% 64.43% Efficiency ratio FTE, adjusted for CDI and acquisition-related expenses (non-GAAP) 52.99% 59.70% 65.91% 58.66% 64.04% Pre-provision net revenue (non-GAAP) $ 32,511 $ 27,227 $ 24,777 $ 81,371 $ 77,482 Pre-provision net revenue, FTE (non-GAAP) 33,920 28,563 26,092 85,429 81,344 Pre-provision net revenue FTE, adjusted for acquisition-related expenses (non-GAAP) 40,916 29,569 26,092 93,685 81,344
Adjusted Net Income and Earnings Per ShareAs of and for the three months ended As of and for the nine months ended September 30, June 30, September 30, September 30, September 30, 2022 2022 2021 2022 2021 Adjustments to net income: Net income $ 15,839 $ 20,362 $ 19,825 $ 54,553 $ 70,837 Add: Acquisition-related adjustments, after tax (non-GAAP) 9,510 773 — 10,480 — Adjusted net income (non-GAAP) $ 25,349 $ 21,135 $ 19,825 $ 65,033 $ 70,837 Adjustments to earnings per share: Earnings per share diluted $ 0.50 $ 0.67 $ 0.64 $ 1.77 $ 2.27 Add: Acquisition-related adjustments, after tax (non-GAAP) 0.30 0.02 — 0.34 — Adjusted earnings per share - diluted (non-GAAP) $ 0.80 $ 0.69 $ 0.64 $ 2.11 $ 2.27