National Bank NYSE: NBHC executives said the company delivered strong second-quarter 2026 results, citing record loan production, improving credit metrics and progress integrating the recently acquired Vista Bank.
Chairman and Chief Executive Officer Tim Laney said the company posted “solid second quarter results” with “record loan production and 10% year-to-date loan growth.” He also said the company’s credit metrics reflected “prudent growth,” while its deposit base remained low-cost and diversified.
“I want to share how pleased I am with the revenue lift we’re seeing from the Vista acquisition,” Laney said, adding that all conversions related to the acquisition were targeted for completion by quarter-end.
Adjusted earnings rise as margin remains near top of peer group
Chief Financial Officer Nicole Van Denabeele said National Bank Holdings reported adjusted net income of $35.3 million, or $0.78 per diluted share, for the second quarter. Annualized, she said that was 33% higher than the prior quarter.
The company’s adjusted return on average tangible assets rose 6 basis points to 1.3%, while adjusted return on average tangible equity increased 92 basis points to 12.7%. Van Denabeele said year-to-date fully taxable equivalent pre-provision net revenue increased 23% from the same period last year.
Fully taxable equivalent net interest income totaled $111.5 million, up 25% from the second quarter of last year. Net interest margin was 3.94% for the quarter, which Van Denabeele said remained in the top quartile of the company’s peers. She said the company expects net interest margin to remain near 4% for the rest of the year, assuming no future Federal Reserve interest rate policy changes.
During the question-and-answer session, Van Denabeele said the company exited June with a month-end margin “right at 4%,” giving management confidence in its near-4% margin outlook.
Record loan originations support 10% growth outlook
The company generated record quarterly loan originations of $927 million, driving annualized year-to-date loan growth of 10%. Van Denabeele said management expects full-year loan portfolio growth of 10%.
President Aldis Birkans said year-to-date loan production totaled $1.7 billion, already exceeding total fundings for all of 2025. He said the production was broad-based across asset classes and geographies, rather than being driven by a single team or region.
“That granularity matters as the whole franchise is pulling in the same direction,” Birkans said. He added that line utilization was moving toward historical averages as clients became more comfortable with the economic outlook.
In response to a question from D.A. Davidson analyst Jeff Rulis about why net loan growth was not higher given the record level of fundings, Birkans said the company experienced somewhat higher loan churn, but year-to-date loan growth remained in line with expectations. Laney said the company was maintaining discipline on profitability and would allow some business to leave if it did not meet desired returns.
Deposits, credit quality and capital remain focus areas
Van Denabeele said average deposit balances grew 2.3% annualized during the quarter. Deposit costs improved by one basis point to 1.93%, while total cost of funds was 2.01%. The company ended the quarter with a loan-to-deposit ratio of 94.1%.
Asked by KBW analyst Kelly Motta about funding loan growth, Birkans said the company focuses on average deposit balances to reduce the effect of quarter-end volatility. He said transaction deposits were flat on a spot basis after adjusting for tax seasonality and grew $115 million on an average basis.
Credit quality remained strong, according to management. The company recorded $1.5 million of provision expense, primarily to support loan growth. Net charge-offs were 27 basis points annualized, non-performing assets were 35 basis points, and the allowance coverage ratio was 1.13%.
Van Denabeele said allowance coverage on non-performing loans improved from two times to three times over the past year. The company also held $19.6 million of marks against its acquired loan portfolio, which she said would provide an additional 20 basis points of loan loss coverage if applied across the entire loan book.
Laney said criticized and classified levels had declined to historical levels and that the company did not see “issues that are haunting us” in future quarters. John Steinmetz, executive vice chair and executive managing director of strategic initiatives, said classified assets were down 47% year over year.
Capital levels remained above regulatory well-capitalized thresholds. Van Denabeele said the Common Equity Tier 1 ratio ended the quarter at 12.3%, while the total capital ratio was 15.4%. Tangible book value per share grew to $26.23, with earnings covering the quarterly dividend and $11 million of share repurchases.
Vista integration on track; 2UniFi progress remains uneven
Non-interest income totaled $19.8 million, up 40% annualized from the linked quarter. Birkans said the increase was driven by service charges, card income and treasury management activity, along with contributions from trust and wealth, Cambr and SBIC income. The company expects full-year fee income to remain within its prior $75 million to $80 million guidance range.
Non-interest expense totaled $95 million, including $11.2 million of acquisition and restructuring expenses. Excluding those items, non-interest expense was $83.7 million. Van Denabeele said full-year non-interest expense guidance remains $320 million to $330 million, with acquisition-related expense synergies expected to fully come online in the fourth quarter. She said fourth-quarter expenses are reasonably expected to be below $80 million.
Steinmetz said the Vista integration was moving from integration work to growth initiatives, including introducing clients to treasury management, trust and wealth, residential mortgage and other products.
Laney also addressed 2UniFi, saying revenue growth had been “slow in coming” but that investments remained well managed and partnership potential was “very solid.” In response to Motta, Laney said 2UniFi revenue performance had been underwhelming, though full applications rose 800% over the first quarter. He said conversions had not yet been “dialed in,” partly because many applications did not meet the company’s credit risk profile.
Van Denabeele said prior guidance of $2 million to $4 million in 2UniFi revenue and $20 million to $22 million in expenses remained accurate. She said the company was confident in its overall fee income guidance regardless of where 2UniFi revenue lands.
Management reiterated that it believes the company is on track to deliver earnings in excess of $1 per share in the fourth quarter of 2026. Laney said the company would continue investing in talent, opportunistically repurchasing shares and reconsidering merger-and-acquisition activity after completing the Vista integration.
About National Bank (NYSE:NBHC)
National Bank Holdings Corporation NYSE: NBHC is a diversified financial services holding company headquartered in Cape Girardeau, Missouri. Through its network of community bank subsidiaries, the company provides deposit, lending and payment solutions to consumer, small business and commercial clients across multiple U.S. markets.
Since its founding in 1992, National Bank Holdings has pursued a growth strategy focused on acquiring and integrating locally branded community banks. Its footprint spans the Midwest and Southern United States, including Missouri, Kansas, Oklahoma, Texas, Colorado, Illinois and Tennessee.
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