National Bank Holdings (NBHC) reported a higher quarterly profit thanks to a wider net interest margin and lower tax and loan-loss provisions.
The $5.4 billion-asset company — which went public and moved its headquarters from Kansas City, Mo., to Greenwood Village, Colo., this year — said Monday that its fourth-quarter profit rose 22% from a year earlier, to $3 million.
Its net interest margin widened by 40 basis points, to 4.09%. National Bank Holdings attributed the better margin to higher yields on loan pools and other assets.
Net interest income held steady, at just under $50 million, as interest expense declined 53%, to $5.1 million, due largely to lower deposit costs. Provisions for loan losses declined 25%, to $2.7 million.
National Bank Holdings' noninterest income rose 69%, as the bank recorded $2.8 million of Federal Deposit Insurance Corp. loss-sharing income. It reported a $1 million loss tied to loss-sharing with the FDIC a year earlier. The bank also enjoyed higher income from bank-card fees.
National Bank Holdings' noninterest expenses rose 12%, to $51.3 million, on higher salary and benefit expenses. Income tax expense declined 57%, to $1.5 million