National Bank Holdings (NBHC) in Greenwood Village, Colo., cut expenses to compensate for lower revenue in the third quarter.

The $5.1 billion-asset National Bank Holdings, which was formed in 2009 to buy failed banks, earned $900,000 in the third quarter. It posted a loss of $7.9 million during the same period a year ago because of $10.8 million in after-tax costs related to its initial public offering.

National Bank Holdings' net interest income fell 8% to $45.5 million as lower average balances offset higher yields on acquired loan pools. Its net interest margin declined by 12 basis points to 3.80%.

Noninterest income dropped 59% to $3.3 million, largely because of a $4.2 million charge related to its Federal Deposit Insurance Corp. indemnification asset.

Reduced costs from salary and employee benefits, professional fees and other real estate owned expenses helped the company shave noninterest expenses by 22%, to $46.6 million. The quarter included $3.4 million in one-time charges related to the company's plans to consolidate 32 retirement center locations and exit four banking centers in Northern California.

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