National Bank Holdings Corp
For the period ended Sep 30, 2025. Filed Oct 29, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 29, 2025
NBHC$36.91-0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0001475841-25-000044
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-29.
0001475841-25-000063
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 188 previous paragraphs and 190 current paragraphs.
109 unchanged; 64 reworded; 12 added; 9 removed; 6 previous and 5 current paragraphs rearranged.
Tables are not compared: 50 previous and 50 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
In September 2025, the FASB issued ASU 2025-06,Intangibles—Goodwill and Other—Internal-Use Software (Topic 350):Targeted Improvements to the Accounting for Internal-Use Software. The update will eliminate the accounting consideration of software project development stages and enhance the guidance around the threshold for cost capitalization. The amendments in this update are effective for fiscal years and interim reporting periods beginning after December 15, 2027 and can be applied using a prospective transition approach, a modified transition approach or a retrospective transition approach. Early adoption is permitted. The Company is currently evaluating the impact from ASU 2025-06.
Current report
Other securities
Current report
Equity securities with readily determinable fair values
Current report
During the three and nine months ended September 30, 2025, one convertible preferred stock investment underwent an initial public offering and was reclassified as an equity security with a readily determinable fair value totaling $4.1 million at September 30, 2025. Equity securities with readily determinable fair values are generally traded on an exchange and market prices are readily available. Unrealized gains or losses on equity securities with readily determinable fair values are recognized in other non-interest income in the Company’s consolidated statements of operations. During the three and nine months ended September 30, 2025, the Company recorded $2.1 million of unrealized gains from equity securities with readily determinable fair values.
Current report
During the three months ended September 30, 2025, the Company recorded provision release for funded loans totaling $1.5 million, primarily driven by the recovery of one previously charged off credit. During the nine months ended September 30, 2025, the Company recorded provision expense for credit losses totaling $8.7 million, including $9.0 million provision expense for funded loans and $0.3 million of provision release for unfunded loan commitments. Provision expense for credit losses during the nine months ended September 30, 2025 was recorded primarily to cover a charge-off on one credit due to suspected fraudulent activity by the borrower. During the three months ended September 30, 2024, the Company recorded provision expense for credit losses on funded loans totaling $2.0 million. During the nine months ended September 30, 2024, the Company recorded provision expense for credit losses totaling $4.8 million, including $4.7 million of provision expense for funded loans and $0.1 million of provision expense for unfunded loan commitments.
Current report
Adjusting for pre-tax acquisition-related expenses totaling $1.7 million, net income totaled $36.6 million and $94.9 million, or $0.96 and $2.47 per diluted share, during the three and nine months ended September 30, 2025, respectively. The adjusted return on average tangible assets was 1.60% and 1.40% during the three and nine months ended September 30, 2025, respectively, and the adjusted return on average tangible common equity was 14.72% and 13.23%, respectively.
Current report
During the three months ended September 30, 2025, the Company recorded provision release for funded loans totaling $1.5 million, primarily driven by the recovery of one previously charged off credit. During the nine months ended September 30, 2025, the Company recorded provision expense for credit losses totaling $8.7 million, including $9.0 million provision expense for funded loans and $0.3 million of provision release for unfunded loan commitments. Provision expense for credit losses during the nine months ended September 30, 2025 was recorded primarily to cover a charge-off on one credit due to suspected fraudulent activity by the borrower. During the three months ended September 30, 2024, the Company recorded provision expense for credit losses on funded loans totaling $2.0 million. During the nine months ended September 30, 2024, the Company recorded provision expense for credit losses totaling $4.8 million, including $4.7 million of provision expense for funded loans and $0.1 million of provision expense for unfunded loan commitments. The allowance for credit losses totaled 1.19% and 1.23% of total loans at September 30, 2025 and 2024, respectively.
Current report
Non-interest income totaled $20.7 million for the three months ended September 30, 2025, increasing 12.5% compared to the three months ended September 30, 2024. Other non-interest income increased $3.3 million due to unrealized gains on partnership investments. Partially offsetting the increase was a combined decrease from service charges and bank card fees totaling $0.9 million.
Current report
During the three months ended September 30, 2025, non-interest expense increased $3.1 million, compared to the three months ended September 30, 2024. The third quarter of 2025 included $1.7 million of acquisition-related expenses included in professional fees and salaries and benefits. Occupancy and equipment expenses increased $2.7 million during the three months ended September 30, 2025,
Current report
compared to the same period in the prior year, primarily driven by 2UniFi’s software asset depreciation as a result of the recent launch of 2UniFi in the third quarter of 2025.
Current report
During the nine months ended September 30, 2025, non-interest expense increased $2.1 million to $192.2 million, compared to the same period during the prior year due to acquisition-related expenses from the proposed merger totaling $1.7 million, primarily included in professional fees and salaries and benefits. Occupancy and equipment expense increased $2.9 million primarily driven by the depreciation of the 2UniFi software asset noted above. Data processing increased $1.0 million during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.
Current report
On July 4, 2025, the One Big Beautiful Bill Act was signed into law. Provisions of the bill allowed companies to take an immediate deduction of domestic research and experimentation expenditures effective for tax years beginning after December 31, 2024. For unamortized domestic research and experimentation expenses capitalized from 2022 to 2024, the bill also allows companies to elect to deduct the remaining costs either fully in 2025 or ratably over two years. The Company elected to fully deduct the remaining costs in 2025. The bill also permanently reinstated 100% bonus depreciation for assets placed in service after January 19, 2025. As a result of these provisions, the company recorded a deferred tax expense of $8.9 million during the third quarter of 2025 related to the remeasurement and decrease in its deferred tax balances.
Removed paragraphs (9)
Previous report
our accumulated other comprehensive loss does not have a material impact on our capital position. Our tangible common equity capital ratio, which includes the accumulated other comprehensive loss, totaled 10.5% at June 30, 2025, compared to 10.2% at December 31, 2024.
Previous report
Non-marketable securities
Previous report
During the three and six months ended June 30, 2025, the Company recorded provision expense for credit losses on funded loans and unfunded loan commitments totaling zero and $10.2 million, respectively, primarily to cover a charge-off on one credit driven by suspected fraudulent activity by the borrower. The Company recorded provision expense for credit losses on funded loans and unfunded loan commitments totaling $2.8 million during the three and six months ended June 30, 2024.
Previous report
The Company recorded provision expense for credit losses on funded loans and unfunded loan commitments totaling zero and $10.2 million for the three and six months ended June 30, 2025, respectively, primarily to cover a charge-off on one credit driven by
Previous report
suspected fraudulent activity by the borrower. During the three and six months ended June 30, 2024, the Company recorded provision expense for credit losses on funded loans and unfunded loan commitments totaling $2.8 million. The allowance for credit losses totaled 1.19% and 1.25% of total loans at June 30, 2025 and 2024, respectively.
Previous report
Non-interest income totaled $17.1 million for the three months ended June 30, 2025, increasing 21.6% compared to the three months ended June 30, 2024. The increase was primarily due to $4.1 million higher other non-interest income, primarily due to an increase of $1.3 million from gains on sales of banking center buildings during the second quarter of 2025 and impairment of $3.9 million during the second quarter of 2024 related to venture capital investments classified as non-marketable securities. Partially offsetting the increase was a $0.7 million decrease in mortgage banking income as the sustained higher-interest rate environment resulted in lower mortgage volume.
Previous report
During the three months ended June 30, 2025, non-interest expense decreased $0.1 million, or 0.2%, compared to the three months ended June 30, 2024, as a result of disciplined expense management. Salaries and benefits increased $0.8 million during the three months ended June 30, 2025, while occupancy and equipment and FDIC deposit insurance decreased $0.7 million and $0.4 million, respectively, compared to the same period in the prior year.
Previous report
During the six months ended June 30, 2025, non-interest expense decreased $1.0 million to $124.9 million, compared to the same period during the prior year, due to disciplined expense management and payroll tax credits realized during the first quarter of 2025.
Previous report
On July 4, 2025, the One Big Beautiful Bill Act was signed into law. The Company is currently evaluating the provisions of the new law and its potential impact on the consolidated financial statements. We have not yet determined the full effect on our effective tax rate, deferred tax balances, or future tax expense.
Reworded paragraphs (64)
Previous wording
The following management’s discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes as of and for the three and six months ended June 30, 2025, and with our annual report onForm 10-K (file number 001-35654), which includes our audited consolidated financial statements and related notes as of and for the years ended December 31, 2024, 2023 and 2022. This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions that may cause actual results to differ materially from management’s expectations. Factors that could cause such differences are discussed in the section entitled “Cautionary Note Regarding Forward-Looking Statements” located elsewhere in this quarterly report and in Item 1A“Risk Factors” in the annual report onForm 10-K, referenced above, and should be read herewith.
Current wording
The following management’s discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes as of and for the three and nine months ended September 30, 2025, and with our annual report onForm 10-K (file number 001-35654), which includes our audited consolidated financial statements and related notes as of and for the years ended December 31, 2024, 2023 and 2022. This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions that may cause actual results to differ materially from management’s expectations. Factors that could cause such differences are discussed in the section entitled “Cautionary Note Regarding Forward-Looking Statements,” in Item 1A “Risk Factors” located elsewhere in this quarterly report and in Item 1A“Risk Factors” in the annual report onForm 10-K, referenced above, and should be read herewith.
Previous wording
Our focus is on building relationships by creating a win-win scenario for our clients and our Company. We believe in providing solutions and services to our clients that are based on fairness and simplicity. We have established a solid financial services franchise with a sizable presence for deposit gathering and building client relationships necessary for growth. We have executed on strategic acquisition opportunities to expand our presence in attractive markets and to diversify our revenue streams. Additionally, we are innovating and building strategic fintech partnerships with the goal of delivering a comprehensive digital financial ecosystem for our clients. We are focused on providing small- and medium-sized businesses with alternative digital access to address borrowing, depository and cash management needs, while also providing information management and access to digital payment tools, under the safety of a regulated bank. We believe that our established presence in our core markets of Colorado, the greater Kansas City region, Utah, Wyoming, Texas, New Mexico and Idaho, as well as our ongoing investment in digital solutions and strategic acquisitions position us well for growth opportunities. As of June 30, 2025, we had $10.0 billion in assets, $7.5 billion in loans, $8.3 billion in deposits, $1.4 billion in equity and $1.0 billion in assets under management in our trust and wealth management business.
Current wording
Our focus is on building relationships by creating a win-win scenario for our clients and our Company. We believe in providing solutions and services to our clients that are based on fairness and simplicity. We have established a solid financial services franchise with a sizable presence for deposit gathering and building client relationships necessary for growth. We have executed on strategic acquisition opportunities to expand our presence in attractive markets and to diversify our revenue streams. Additionally, we are innovating and building strategic fintech partnerships with the goal of delivering a comprehensive digital financial ecosystem for our clients. We are focused on providing small- and medium-sized businesses with alternative digital access to address borrowing, depository and cash management needs, while also providing information management and access to digital payment tools, under the safety of a regulated bank. We believe that our established presence in our core markets of Colorado, the greater Kansas City region, Utah, Wyoming, Texas, New Mexico and Idaho, as well as our ongoing investment in digital solutions and strategic acquisitions, position us well for growth opportunities. As of September 30, 2025, we had $10.2 billion in assets, $7.4 billion in loans, $8.5 billion in deposits, $1.4 billion in equity and $1.1 billion in assets under management in our trust and wealth management business.
Previous wording
Future growth in our interest income will ultimately be dependent on our ability to originate high-quality loans and source other high-quality earning assets such as investment securities as well as our ability to access liquidity and manage our cost of funds. During the years ended December 31, 2023 and 2022, the Federal Reserve increased prevailing interest rates by a total of 100 and 425 basis points, respectively. In the second half of 2024, the Federal Reserve decreased the prevailing interest rates by a total of 100 basis
Current wording
Future growth in our interest income will ultimately be dependent on our ability to originate high-quality loans and source other high-quality earning assets such as investment securities as well as our ability to access liquidity and manage our cost of funds. During the years ended December 31, 2023 and 2022, the Federal Reserve increased prevailing interest rates by a total of 100 and 425 basis points, respectively. In the second half of 2024, the Federal Reserve decreased the prevailing interest rates by a total of 100 basis points, and during the third quarter of 2025 the Federal Reserve decreased the prevailing interest rates by 25 basis points. While further cuts in 2025 remain unclear, our future earnings will be impacted by the Federal Reserve’s future interest rate policy decisions. Management employs risk management policies to monitor and limit exposure to changes in market rates, which is discussed in more detail in the Asset/Liability Management and Interest Rate Risk section of Management’s Discussion and Analysis.
Previous wording
Certain financial measures and ratios we present, including “tangible assets,” “average tangible assets,” “return on average tangible assets,” “tangible common equity,” “tangible common equity to tangible assets,” “return on average tangible common equity,” “tangible common book value,” “tangible common book value per share,” “tangible common equity to tangible assets,” “net income excluding the impact of other intangible assets amortization expense, after tax,” “adjusted net income,” “adjusted earnings per share – diluted,” “adjusted return on average tangible assets,” “adjusted return on average tangible common equity,” “efficiency ratio excluding other intangible assets amortization FTE, adjusted for the loss on security sales,” “pre-provision net revenue,” “pre-provision net revenue FTE,” “pre-provision net revenue FTE, adjusted for the loss on security sales,” “non-interest income adjusted for the loss on security sales,” “non-interest expense excluding other intangible assets amortization,” and “FTE” metrics, are supplemental measures that are not required by, or are not presented in accordance with, U.S. 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 an FTE 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.
Current wording
Certain financial measures and ratios presented in the tables within thisAbout Non-GAAP Financial Measures section are supplemental measures that are not required by, or are not presented in accordance with, U.S. 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 an FTE 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.
Previous wording
In July 2025, the FASB issued ASU 2025-05,Financial Instruments—Credit Losses (Topic 326). The update is related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC Topic 606. It allows all entities to elect a practical expedient that assumes current conditions as of the balance sheet date do not change for the remaining life of the asset. The update also allows for an accounting policy election, which is not applicable to public business entities. Entities are required to disclose whether they have elected to use the practical expedient and, if applicable, the accounting policy election. The amendments in this update are effective for fiscal years and interim reporting periods beginning after December 15, 2025 and are to be applied on a prospective basis. Early adoption is permitted. The Company is currently evaluating the impact from ASU 2025-05.
Current wording
In July 2025, the FASB issued ASU 2025-05,Financial Instruments—Credit Losses (Topic 326):Measurement of Credit Losses for Accounts Receivable and Contract Assets. The update is related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC Topic 606. It allows all entities to elect a practical expedient that assumes current conditions as of the balance sheet date do not change for the remaining life of the asset. The update also allows for an accounting policy election, which is not applicable to public business entities. Entities are required to disclose whether they have elected to use the practical expedient and, if applicable, the accounting policy election. The amendments in this update are effective for fiscal years and interim reporting periods beginning after December 15, 2025 and are to be applied on a
Previous wording
In November 2024, the FASB issued ASU 2024-03,Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Topic 220): Disaggregation of Income Statement Expenses. The update requires public business entities to disclose specific components of certain expense categories. This includes expense categories such as employee compensation, depreciation, and intangible asset amortization. The amendments in this update are effective for fiscal years beginning after December 15, 2026 and are to be applied on a prospective basis with an option for retrospective application. Early adoption is permitted. The Company is evaluating the impact from ASU 2024-03, and does not expect the adoption of this pronouncement to have a material impact on its financial statements apart from the inclusion of additional disclosures.
Current wording
In November 2024, the FASB issued ASU 2024-03,Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Topic 220): Disaggregation of Income Statement Expenses. The update requires public business entities to disclose specific components of certain expense categories. This includes expense categories such as employee compensation, depreciation, and intangible asset amortization. The amendments in this update are effective for fiscal years beginning after December 15, 2026 and are to be applied on a prospective basis with an option for retrospective application. Early adoption is permitted. The Company has evaluated the impact from ASU 2024-03 and does not expect the adoption of this pronouncement to have a material impact on its financial statements apart from the inclusion of additional disclosures.
Previous wording
Total assets were $10.0 billion at June 30, 2025, increasing $191.0 million, or 1.9%, from December 31, 2024. Cash and cash equivalents increased $168.6 million from December 31, 2024, and investment securities increased $288.5 million. Loans totaled $7.5 billion and $7.8 billion at June 30, 2025 and December 31, 2024, respectively, and the allowance for credit losses totaled $88.9 million and $94.5 million at June 30, 2025 and December 31, 2024, respectively. Lower-cost transaction deposits totaled $7.2 billion at June 30, 2025 and December 31, 2024. Total deposits increased $31.6 million to $8.3 billion at June 30, 2025, compared to December 31, 2024.
Current wording
Total assets were $10.2 billion at September 30, 2025, increasing $345.0 million, or 3.5%, from December 31, 2024. Cash and cash equivalents increased $427.7 million from December 31, 2024, and investment securities increased $245.6 million. Loans totaled $7.4 billion and $7.8 billion at September 30, 2025 and December 31, 2024, respectively, and the allowance for credit losses totaled $88.3 million and $94.5 million at September 30, 2025 and December 31, 2024, respectively. Lower-cost transaction deposits totaled $7.3 billion and $7.2 billion at September 30, 2025 and December 31, 2024, respectively. Total deposits increased $233.8 million to $8.5 billion at September 30, 2025, compared to December 31, 2024.
Previous wording
Total investment securities available-for-sale were $631.9 million at June 30, 2025, compared to $527.5 million at December 31, 2024. Purchases of available-for-sale securities during the six months ended June 30, 2025 and 2024 totaled $160.5 million and $138.4 million, respectively. Paydowns and maturities totaled $74.6 million and $72.1 million during the six months ended June 30, 2025 and 2024, respectively.
Current wording
Total investment securities available-for-sale were $612.7 million at September 30, 2025, compared to $527.5 million at December 31, 2024. Purchases of available-for-sale securities during the nine months ended September 30, 2025 and 2024 totaled $164.7 million and $199.1 million, respectively. Paydowns and maturities totaled $100.4 million and $137.6 million during the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
Mortgage-backed securities may have actual maturities that differ from contractual maturities depending on the repayment characteristics and experience of the underlying financial instruments. The estimated weighted average life of the available-for-sale mortgage-backed securities portfolio was 4.8 years and 5.3 years at June 30, 2025 and December 31, 2024, respectively. This estimate is based on assumptions and actual results may differ. At June 30, 2025 and December 31, 2024, the duration of the total available-for-sale investment portfolio was 4.0 years and 4.3 years, respectively.
Current wording
Mortgage-backed securities may have actual maturities that differ from contractual maturities depending on the repayment characteristics and experience of the underlying financial instruments. The estimated weighted average life of the available-for-sale mortgage-backed securities portfolio was 4.6 years and 5.3 years at September 30, 2025 and December 31, 2024, respectively. This estimate is based on assumptions and actual results may differ. At September 30, 2025 and December 31, 2024, the duration of the total available-for-sale investment portfolio was 3.9 years and 4.3 years, respectively.
Previous wording
At June 30, 2025 and December 31, 2024, adjustable rate securities comprised 12.6% and 5.9%, respectively, of the available-for-sale MBS portfolio. The remainder of the portfolio was comprised of fixed rate amortizing securities with 10- to 30-year contractual maturities, with a weighted average coupon of 2.45% per annum and 2.31% per annum at June 30, 2025 and December 31, 2024, respectively.
Current wording
At September 30, 2025 and December 31, 2024, adjustable rate securities comprised 13.6% and 5.9%, respectively, of the available-for-sale MBS portfolio. The remainder of the portfolio was comprised of fixed rate amortizing securities with 10- to 30-year contractual maturities, with a weighted average coupon of 2.42% per annum and 2.31% per annum at September 30, 2025 and December 31, 2024, respectively.
Previous wording
The available-for-sale investment portfolio included $75.5 million of unrealized losses and $2.9 million of unrealized gains at June 30, 2025. At December 31, 2024, the available-for-sale investment portfolio included $90.9 million of unrealized losses and $0.5 million of unrealized gains. We believe any unrealized losses are a result of prevailing interest rates, and as such, we do not believe that any of the securities with unrealized losses were impaired. Management believes that default of the available-for-sale securities is highly unlikely. FHLMC, FNMA and GNMA guaranteed mortgage-backed securities and U.S. Treasury securities have a long history of zero credit losses, an explicit guarantee by the U.S. government (although limited for FNMA and FHLMC securities) and yields that generally trade based on market views of prepayment and liquidity risk rather than credit risk.
Current wording
The available-for-sale investment portfolio included $69.0 million of unrealized losses and $2.8 million of unrealized gains at September 30, 2025. At December 31, 2024, the available-for-sale investment portfolio included $90.9 million of unrealized losses and $0.5 million of unrealized gains. We believe any unrealized losses are a result of prevailing interest rates, and as such, we do not believe that any of the securities with unrealized losses were impaired. Management believes that default of the available-for-sale securities is highly unlikely. FHLMC, FNMA and GNMA guaranteed mortgage-backed securities and U.S. Treasury securities have a long history of zero credit losses, an explicit guarantee by the U.S. government (although limited for FNMA and FHLMC securities) and yields that generally trade based on market views of prepayment and liquidity risk rather than credit risk.
Previous wording
Held-to-maturity investment securities totaled $717.2 million at June 30, 2025, compared to $533.1 million at December 31, 2024, an increase of $184.1 million, or 34.5%. Purchases during the six months ended June 30, 2025 totaled $260.3 million. There were no
Current wording
Held-to-maturity investment securities totaled $689.5 million at September 30, 2025, compared to $533.1 million at December 31, 2024, an increase of $156.4 million, or 29.3%. Purchases during the nine months ended September 30, 2025 totaled $260.3 million. There were no purchases of held-to-maturity securities during the nine months ended September 30, 2024. Paydowns and maturities totaled $105.0 million and $47.4 million during the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
The fair value of the held-to-maturity investment portfolio included $67.0 million of unrealized losses and $3.0 million of unrealized gains at June 30, 2025. At December 31, 2024, the held-to-maturity investment portfolio included $81.8 million of unrealized losses and $51 thousand of unrealized gains.
Current wording
The fair value of the held-to-maturity investment portfolio included $61.2 million of unrealized losses and $2.5 million of unrealized gains at September 30, 2025. At December 31, 2024, the held-to-maturity investment portfolio included $81.8 million of unrealized losses and $51 thousand of unrealized gains.
Previous wording
The Company does not measure expected credit losses on a financial asset, or groups of financial assets, in which historical credit loss information adjusted for current conditions and reasonable and supportable forecasts results in an expectation that nonpayment of the amortized cost basis is zero. Management evaluated held-to-maturity securities noting they are backed by loans guaranteed by either U.S. government agencies or U.S. government sponsored entities, and management believes that default is highly unlikely given this governmental backing and long history without credit losses. Additionally, management notes that yields on which the portfolio generally trades are based upon market views of prepayment and liquidity risk and not credit risk. The Company has no intention to sell the securities and believes it will not be required to sell the securities before the recovery of their amortized cost.
Current wording
The Company does not measure expected credit losses on a financial asset, or groups of financial assets, in which historical credit loss information adjusted for current conditions and reasonable and supportable forecasts results in an expectation that nonpayment of the amortized cost basis is zero. Management evaluated held-to-maturity securities noting they are backed by loans guaranteed by either U.S. government agencies or U.S. government sponsored entities, and management believes that default is highly unlikely given this governmental backing and long history without credit losses. Additionally, management notes that yields on which the portfolio
Previous wording
Mortgage-backed securities may have actual maturities that differ from contractual maturities depending on the repayment characteristics and experience of the underlying financial instruments. The estimated weighted average expected life of the held-to-maturity mortgage-backed securities portfolio as of June 30, 2025 and December 31, 2024 was 4.9 years and 5.6 years, respectively. This estimate is based on assumptions and actual results may differ. The duration of the total held-to-maturity investment portfolio was 4.0 years and 4.4 years as of June 30, 2025 and December 31, 2024, respectively.
Current wording
Mortgage-backed securities may have actual maturities that differ from contractual maturities depending on the repayment characteristics and experience of the underlying financial instruments. The estimated weighted average expected life of the held-to-maturity mortgage-backed securities portfolio as of September 30, 2025 and December 31, 2024 was 4.6 years and 5.6 years, respectively. This estimate is based on assumptions and actual results may differ. The duration of the total held-to-maturity investment portfolio was 3.8 years and 4.4 years as of September 30, 2025 and December 31, 2024, respectively.
Previous wording
The carrying balances of non-marketable securities are summarized as follows as of the dates indicated:
Current wording
The carrying balances of other securities are summarized as follows as of the dates indicated:
Previous wording
Non-marketable securities included FRB stock, FHLB stock, convertible preferred stock and equity method investments. During the six months ended June 30, 2025, purchases of non-marketable securities totaled $37.0 million, and proceeds from redemptions and sales of non-marketable securities totaled $32.4 million. During the six months ended June 30, 2024, purchases of non-marketable securities totaled $16.9 million, and proceeds from non-marketable securities totaled $30.8 million. Purchases consisted primarily of FHLB stock, and proceeds consisted primarily of redemptions of FHLB stock. Changes in the Company’s FHLB stock holdings were directly correlated to FHLB line of credit advances and paydowns.
Current wording
Other securities included FRB stock, FHLB stock, convertible preferred stock, equity method investments and equity securities with readily determinable fair values. During the nine months ended September 30, 2025, purchases of other securities totaled $50.0 million, and proceeds from redemptions and sales of other securities totaled $48.0 million. During the nine months ended September 30, 2024, purchases of other securities totaled $26.2 million, and proceeds from other securities totaled $42.6 million. Purchases consisted primarily of FHLB stock, and proceeds consisted primarily of redemptions of FHLB stock. Changes in the Company’s FHLB stock holdings directly correlated to FHLB line of credit advances and paydowns.
Previous wording
Non-marketable securities include convertible preferred stock without a readily determinable fair value. During the three and six months ended June 30, 2025, there were no purchases of convertible preferred stock. The Company purchased zero and $0.4 million of convertible preferred stock during the three and six months ended June 30, 2024, respectively. During the three and six months ended June 30, 2024, the Company recorded $3.9 million of impairment on convertible preferred stock related to venture capital investments, included in other non-interest income in the Company’s consolidated statements of operations. The Company also sold convertible preferred stock totaling $1.0 million, during the three and six months ended June 30, 2024, which generated realized gains of $0.1 million recorded in other non-interest income in the Company’s consolidated statements of operations.
Current wording
Other securities include convertible preferred stock without a readily determinable fair value. During the three and nine months ended September 30, 2025, there were no purchases of convertible preferred stock. One convertible preferred stock investment underwent an initial public offering and was reclassified as an equity security with a readily determinable fair value during the third quarter of 2025. The Company purchased zero and $0.4 million of convertible preferred stock during the three and nine months ended September 30, 2024, respectively. During the three and nine months ended September 30, 2024, the Company recorded $3.9 million of impairment on convertible preferred stock related to venture capital investments, included in other non-interest income in the Company’s consolidated statements of operations. The Company also sold convertible preferred stock totaling $1.0 million, during the three and nine months ended September 30, 2024, which generated realized gains of $0.1 million recorded in other non-interest income in the Company’s consolidated statements of operations.
Previous wording
Non-marketable securities also include equity method investments totaling $26.8 million and $26.2 million at June 30, 2025 and December 31, 2024, respectively, and equity method investments without a readily determinable fair value totaling $1.4 million and $1.8 million at June 30, 2025 and December 31, 2024, respectively. During the three and six months ended June 30, 2025, the Company recorded net unrealized gains on equity method investments totaling $0.3 million and $15.2 thousand, respectively. During the three and six months ended June 30, 2024, the Company recorded net unrealized gains on equity method investments totaling $0.3 million. These gains and losses were recorded in other non-interest income in the Company’s consolidated statements of operations. Carrying values of equity method investments without a readily determinable fair value are updated periodically and impairments may be taken to reflect a new basis. The Company recorded no impairment related to equity method investments without a readily determinable fair value for the six months ended June 30, 2025 or the year ended December 31, 2024.
Current wording
Other securities also include equity method investments totaling $33.3 million and $28.0 million at September 30, 2025 and December 31, 2024, respectively. The increase was primarily due to a $5.0 million investment in Nav, a credit and financial health platform for small business owners. The Company recorded net unrealized gains on equity method investments totaling $1.7 million during the three and nine months ended September 30, 2025. During the three and nine months ended September 30, 2024, the Company recorded net unrealized gains on equity method investments totaling $0.4 million and $0.7 million, respectively. These gains and losses were recorded in other non-interest income in the Company’s consolidated statements of operations. The Company recorded no
Previous wording
The Company maintains a granular and well-diversified loan portfolio with self-imposed concentration limits. At June 30, 2025, loans totaled $7.5 billion, compared to $7.8 billion at December 31, 2024.
Current wording
The Company maintains a granular and well-diversified loan portfolio with self-imposed concentration limits. At September 30, 2025, loans totaled $7.4 billion, compared to $7.8 billion at December 31, 2024.
Previous wording
Our commercial and industrial loan portfolio is highly diversified across industry sectors and geography. At June 30, 2025, there were no industry sectors representing more than 15.0% of our total loan portfolio. Key sectors included government/non-profit loans of $834.3 million, or 11.1% of total loans, and health care/hospital loans of $579.3 million, or 7.7% of total loans. The commercial and industrial portfolio also includes loans to companies that operate in the transportation industry. The transportation industry, trucking in particular, has experienced recent economic challenges. As a result of these industry challenges, some of the transportation loans may be subject to higher credit risk. The Company’s exposure to this industry is small, consisting of $163.6 million, or 2.2% of total loans, at June 30, 2025.
Current wording
Our commercial and industrial loan portfolio is highly diversified across industry sectors and geography. At September 30, 2025, there were no industry sectors representing more than 15.0% of our total loan portfolio. Key sectors included government/non-profit loans of $907.6 million, or 12.2% of total loans, and health care/hospital loans of $501.6 million, or 6.8% of total loans. The commercial and industrial portfolio also includes loans to companies that operate in the transportation industry. The transportation industry, trucking in particular, has experienced recent economic challenges. As a result of these industry challenges, some of the transportation loans may be subject to higher credit risk. The Company’s exposure to this industry is small, consisting of $151.4 million, or 2.0% of total loans, at September 30, 2025.
Previous wording
Non-owner occupied CRE loans were 141.1% of the Company’s risk based capital, or 23.0% of total loans, and no specific property type comprised more than 10.0% of total loans. The Company maintains little exposure to non-owner occupied CRE retail properties and office properties, comprising 2.0% and 1.3% of total loans, respectively. Multifamily loans totaled $321.2 million, or 4.3% of total loans, at June 30, 2025.
Current wording
Non-owner occupied CRE loans were 132.3% of the Company’s risk based capital, or 22.1% of total loans, and no specific property type comprised more than 10.0% of total loans. The Company maintains little exposure to non-owner occupied CRE retail properties and office properties, comprising 2.1% and 1.1% of total loans, respectively. Multifamily loans totaled $301.2 million, or 4.1% of total loans, at September 30, 2025.
Previous wording
The agriculture industry continues to be impacted by volatile commodity prices and generally by higher input costs, combining to stress margins. Our food and agribusiness portfolio is 3.3% of total loans and is well-diversified across food production, crop and livestock types. Crop and livestock loans represent 1.0% of total loans. We have maintained relationships with food and agribusiness clients that generally possess low leverage and, correspondingly, low bank debt to assets, minimizing any potential credit losses in the future.
Current wording
The agriculture industry continues to be impacted by volatile commodity prices and generally by higher input costs, combining to stress margins. Our food and agribusiness portfolio is 3.2% of total loans and is well-diversified across food production, crop and livestock types. Crop and livestock loans represent 1.2% of total loans. We have maintained relationships with food and agribusiness clients that generally possess low leverage and, correspondingly, low bank debt to assets, minimizing any potential credit losses in the future.
Previous wording
fundings of $928.3 million. Fundings are defined as closed-end funded loans and revolving lines of credit advances, net of any current period paydowns. Management utilizes this more conservative definition of fundings to better approximate the impact of fundings on loans outstanding and ultimately net interest income.
Current wording
New loan origination is a direct result of our ability to recruit and retain top banking talent, connect with clients in our markets and provide needed services at competitive rates. Loan fundings totaled $1.5 billion over the trailing 12 months, led by commercial loan fundings of $997.3 million. Fundings are defined as closed-end funded loans and revolving lines of credit advances, net of any current period paydowns. Management utilizes this more conservative definition of fundings to better approximate the impact of fundings on loans outstanding and ultimately net interest income.
Previous wording
Included in fundings are net fundings under revolving lines of credit totaling $15,490, $21,752, $64,375, $16,302 and $19,281 for the dates noted in the table above, respectively.
Current wording
Included in fundings are net (paydowns) fundings under revolving lines of credit totaling ($1,591), $15,490, $21,752, $64,375 and $16,302 for the dates noted in the table above, respectively.
Previous wording
loan agreements, and credit monitoring and remediation procedures that may include modifying a loan to provide a concession by the Company to the borrower from their original terms due to borrower financial difficulties in order to facilitate repayment. Such modified loans are considered TDMs. TDMs may include principal forgiveness, interest rate reductions, other-than-insignificant-payment delays, term extensions or any combination thereof. TDMs are discussed further in note 5 of our consolidated financial statements. Assets that have been foreclosed on or acquired through deed-in-lieu of foreclosure are classified as OREO until sold, and are carried at the fair value of the collateral less estimated costs to sell, with any initial valuation adjustments charged to the ACL and any subsequent declines in carrying value charged to impairments on OREO.
Current wording
The Company’s policy is to review each prospective credit to determine the appropriateness and the adequacy of security or collateral prior to making a loan. In the event of borrower default, the Company seeks recovery in compliance with lending laws, the respective loan agreements, and credit monitoring and remediation procedures that may include modifying a loan to provide a concession by the Company to the borrower from their original terms due to borrower financial difficulties in order to facilitate repayment. Such modified loans are considered TDMs. TDMs may include principal forgiveness, interest rate reductions, other-than-insignificant-payment delays, term extensions or any combination thereof. TDMs are discussed further in note 5 of our consolidated financial statements. Assets that have been foreclosed on or acquired through deed-in-lieu of foreclosure are classified as OREO until sold, and are carried at the fair value of the collateral less estimated costs to sell, with any initial valuation adjustments charged to the ACL and any subsequent declines in carrying value charged to impairments on OREO.
Previous wording
Non-performing assets consist of non-accrual loans and OREO. Interest income that would have been recorded had non-accrual loans performed in accordance with their original contract terms during the three and six months ended June 30, 2025 was $0.6 million and $1.3 million, respectively, and $0.4 million and $1.0 million during the three and six months ended June 30, 2024, respectively.
Current wording
Non-performing assets consist of non-accrual loans and OREO. Interest income that would have been recorded had non-accrual loans performed in accordance with their original contract terms during the three and nine months ended September 30, 2025 was $0.5 million and $1.8 million, respectively, and $0.4 million and $1.4 million during the three and nine months ended September 30, 2024, respectively.
Previous wording
During the six months ended June 30, 2025, total non-performing loans decreased $2.7 million, or 7.4%, from December 31, 2024. Loans 30-89 days past due and still accruing interest improved 11 basis points to 0.19% of total loans at June 30, 2025, compared to December 31, 2024. Loans 90 days or more past due and still accruing interest improved nine basis points to 0.10% of total loans at June 30, 2025, compared to December 31, 2024.
Current wording
During the nine months ended September 30, 2025, total non-performing loans decreased $9.3 million, or 25.8%, from December 31, 2024. Loans 30-89 days past due and still accruing interest improved 11 basis points to 0.19% of total loans at September 30, 2025, compared to December 31, 2024. Loans 90 days or more past due and still accruing interest improved three basis points to 0.16% of total loans at September 30, 2025, compared to December 31, 2024.
Previous wording
The ACL represents the amount that we believe is necessary to absorb estimated lifetime credit losses inherent in the loan portfolio at the balance sheet date and involves a high degree of judgment and complexity. The Company utilizes a DCF model developed within a third-party software tool to establish expected lifetime credit losses for the loan portfolio. The ACL is calculated as the difference between the amortized cost basis and the projections from the DCF analysis. The DCF model allows for individual lifetime loan cash flow modeling, excluding extensions and renewals, using loan-specific interest rates and repayment schedules including estimated prepayment rates and loss recovery timing delays. The model incorporates forecasts of certain national macro-economic factors, including unemployment rates, HPI, retail sales and GDP, which drive correlated loss rates. The determination and application of the
Current wording
The ACL represents the amount that we believe is necessary to absorb estimated lifetime credit losses inherent in the loan portfolio at the balance sheet date and involves a high degree of judgment and complexity. The Company utilizes a DCF model developed within a third-party software tool to establish expected lifetime credit losses for the loan portfolio. The ACL is calculated as the difference between the amortized cost basis and the projections from the DCF analysis. The DCF model allows for individual lifetime loan cash flow modeling, excluding extensions and renewals, using loan-specific interest rates and repayment schedules including estimated prepayment rates and loss recovery timing delays. The model incorporates forecasts of certain national macro-economic factors, including unemployment rates, HPI, retail sales and GDP, which drive correlated loss rates. The determination and application of the ACL accounting policy involves judgments, estimates and uncertainties that are subject to change. For periods beyond the reasonable and supportable forecast period, the Company reverts to historical long-term average loss rates on a straight-line basis.
Previous wording
Loans on non-accrual, in bankruptcy and TDMs with a balance greater than $250 thousand are excluded from the pooled analysis and are evaluated individually. If management determines that foreclosure is probable, expected credit losses are evaluated based on the criteria listed below, adjusted for selling costs as appropriate. Typically, these loans consist of commercial, commercial real estate and agriculture loans and exclude homogeneous loans such as residential real estate and consumer loans. Specific allowances are determined by collectively analyzing:
Current wording
Loans on non-accrual, in bankruptcy and TDMs with a balance greater than $250 thousand are excluded from the pooled analysis and are evaluated individually. If management determines that foreclosure is probable, expected credit losses are evaluated based on the criteria listed below, adjusted for selling costs as appropriate. Typically, these loans consist of commercial, commercial real estate and
Previous wording
At June 30, 2025 and December 31, 2024, the allowance for credit losses totaled $88.9 million and $94.5 million, respectively. The decrease during the six months ended June 30, 2025 was primarily driven by the resolution of non-performing loans and changes in the CECL model’s underlying macro-economic forecast. Specific reserves on loans totaled $6.3 million at June 30, 2025, compared to $6.4 million at December 31, 2024.
Current wording
At September 30, 2025 and December 31, 2024, the allowance for credit losses totaled $88.3 million and $94.5 million, respectively. The decrease during the nine months ended September 30, 2025 was primarily driven by the resolution of non-performing loans and changes in the CECL model’s underlying macro-economic forecast. Specific reserves on loans totaled $4.8 million at September 30, 2025, compared to $6.4 million at December 31, 2024.
Previous wording
Net charge-offs on loans during the three and six months ended June 30, 2025 totaled $1.0 million and $16.1 million, respectively, and were elevated during the first quarter of 2025 due to an $8.9 million net charge-off from one credit due to suspected fraud by the borrower, which the Company believes is an isolated circumstance within the loan portfolio. The ratio of annualized net charge-offs to average total loans totaled 0.05% and 0.43%, for the three and six months ended June 30, 2025, respectively. Net charge-offs on loans during the three and six months ended June 30, 2024 totaled $4.1 million and $4.2 million, respectively, and the ratio of annualized net charge-offs to average total loans totaled 0.22% and 0.11%, respectively.
Current wording
During the three and nine months ended September 30, 2025, net recoveries totaled $0.9 million and net charge-offs totaled $15.2 million, respectively. Charge-offs were elevated during the first quarter of 2025 due to an $8.9 million charge-off from one credit due to suspected fraud by the borrower, which the Company believes is an isolated circumstance within the loan portfolio. The ratio of annualized net recoveries to average total loans totaled 0.05% for the three months ended September 30, 2025, and the ratio of annualized net charge-offs to average total loans totaled 0.27% for the nine months ended September 30, 2025. Net charge-offs on loans during the three and nine months ended September 30, 2024 totaled $3.4 million and $7.6 million, respectively, and the ratio of annualized net charge-offs to average total loans totaled 0.18% and 0.13%, respectively.
Previous wording
The Company has elected to exclude AIR from the ACL calculation. As of June 30, 2025 and December 31, 2024, AIR from loans totaled $38.9 million and $41.5 million, respectively. When a loan is placed on non-accrual, any recorded AIR is reversed against interest income.
Current wording
The Company has elected to exclude AIR from the ACL calculation. As of September 30, 2025 and December 31, 2024, AIR from loans totaled $45.1 million and $41.5 million, respectively. When a loan is placed on non-accrual, any recorded AIR is reversed against interest income.
Previous wording
After considering the above-mentioned factors, we believe that the ACL of $88.9 million is adequate to cover estimated lifetime losses inherent in the loan portfolio at June 30, 2025. However, it is likely that future adjustments to the ACL will be necessary. Any changes to the underlying assumptions, circumstances or estimates, including but not limited to changes in the underlying macro-economic forecast, used in determining the ACL, could negatively or positively affect the Company’s results of operations, liquidity or financial condition.
Current wording
After considering the above-mentioned factors, we believe that the ACL of $88.3 million is adequate to cover estimated lifetime losses inherent in the loan portfolio at September 30, 2025. However, it is likely that future adjustments to the ACL will be necessary. Any changes to the underlying assumptions, circumstances or estimates, including but not limited to changes in the underlying macro-economic forecast, used in determining the ACL, could negatively or positively affect the Company’s results of operations, liquidity or financial condition.
Previous wording
At June 30, 2025 and December 31, 2024, time deposits that were scheduled to mature within 12 months totaled $837.5 million and $822.6 million, respectively. Of the time deposits scheduled to mature within 12 months at June 30, 2025, $254.5 million were in denominations of $250 thousand or more, and $583.0 million were in denominations less than $250 thousand. Approximately 78% of our total deposits were FDIC insured at June 30, 2025. Additionally, the Company participates in the IntraFi Cash Service program,
Current wording
At September 30, 2025 and December 31, 2024, time deposits that were scheduled to mature within 12 months totaled $950.6 million and $822.6 million, respectively. Of the time deposits scheduled to mature within 12 months at September 30, 2025, $282.5 million were in denominations of $250 thousand or more, and $668.1 million were in denominations less than $250 thousand. Approximately 77% of our total deposits were FDIC insured at September 30, 2025. Additionally, the Company participates in the IntraFi Cash
Previous wording
which allows depositors to receive reciprocal FDIC insurance coverage. The Company had $0.8 billion and $1.0 billion of deposits in the program at June 30, 2025 and December 31, 2024, respectively.
Current wording
Service program, which allows depositors to receive reciprocal FDIC insurance coverage. The Company had $0.8 billion and $1.0 billion of deposits in the program at September 30, 2025 and December 31, 2024, respectively.
Previous wording
The Company holds a subordinated note purchase agreement to issue and sell a fixed-to-floating rate note totaling $40.0 million. The balance on the note at June 30, 2025, net of long-term debt issuance costs of $0.1 million, totaled $39.9 million. At December 31, 2024, the balance on the note, net of long-term debt issuance costs of $0.2 million, totaled $39.8 million. During the three and six months ended June 30, 2025 and 2024, interest expense totaling $0.3 million and $0.6 million, respectively, was recorded in the consolidated statements of operations.
Current wording
The Company holds a subordinated note purchase agreement to issue and sell a fixed-to-floating rate note totaling $40.0 million. The balance on the note at September 30, 2025, net of long-term debt issuance costs of $0.1 million, totaled $39.9 million. At December 31, 2024, the balance on the note, net of long-term debt issuance costs of $0.2 million, totaled $39.8 million. During the three and nine months ended September 30, 2025 and 2024, interest expense totaling $0.3 million and $0.9 million, respectively, was recorded in the consolidated statements of operations.
Previous wording
As part of the acquisition of BOJH on October 1, 2022, the Company assumed three subordinated note purchase agreements to issue and sell fixed-to-floating rate notes totaling $15.0 million. The balance on the notes at June 30, 2025, net of a fair value adjustment related to the acquisition totaling $0.2 million, totaled $14.8 million. At December 31, 2024, the balance on the notes, net of a fair value adjustment related to the acquisition totaling $0.3 million, totaled $14.7 million. Interest expense related to the notes totaling $0.1 million and $0.3 million was recorded in the consolidated statements of operations during the three and six months ended June 30, 2025 and 2024, respectively.
Current wording
As part of the acquisition of BOJH on October 1, 2022, the Company assumed three subordinated note purchase agreements to issue and sell fixed-to-floating rate notes totaling $15.0 million. The balance on the notes at September 30, 2025, net of a fair value adjustment related to the acquisition totaling $0.1 million, totaled $14.9 million. At December 31, 2024, the balance on the notes, net of a fair value adjustment related to the acquisition totaling $0.3 million, totaled $14.7 million. Interest expense related to the notes totaling $0.1 million and $0.4 million was recorded in the consolidated statements of operations during the three and nine months ended September 30, 2025 and 2024, respectively.
Previous wording
At June 30, 2025 and December 31, 2024, the Company sold securities under agreements to repurchase totaling $18.5 million and $18.9 million, respectively. In addition, as a member of the FHLB, the Company has access to a line of credit and term financing from the FHLB with total available credit of $1.5 billion at June 30, 2025. The Company may utilize the FHLB line of credit as a funding mechanism for originated loans and loans held for sale. At June 30, 2025 and December 31, 2024, NBH Bank had $185.0 million and $50.0 million, respectively, of outstanding borrowings with the FHLB. The Company may pledge investment securities and loans as collateral for FHLB advances. There were no investment securities pledged at June 30, 2025 or December 31, 2024. Loans pledged were $2.4 billion and $2.6 billion at June 30, 2025 and December 31, 2024, respectively. The Company incurred $1.2 million and $2.3 million of interest expense related to FHLB advances or other short-term borrowings for the three and six months ended June 30, 2025, respectively. During the three and six months ended June 30, 2024, the Company incurred $0.1 million and $3.3 million, respectively, of interest expense related to FHLB advances or other short-term borrowings.
Current wording
At September 30, 2025 and December 31, 2024, the Company sold securities under agreements to repurchase totaling $21.3 million and $18.9 million, respectively. In addition, as a member of the FHLB, the Company has access to a line of credit and term financing from the FHLB with total available credit of $1.6 billion at September 30, 2025. The Company may utilize the FHLB line of credit as a funding mechanism for originated loans and loans held for sale. At September 30, 2025 and December 31, 2024, NBH Bank had zero and $50.0 million, respectively, of outstanding borrowings with the FHLB. The Company may pledge investment securities and loans as collateral for FHLB advances. There were no investment securities pledged at September 30, 2025 or December 31, 2024. Loans pledged were $2.5 billion and $2.6 billion at September 30, 2025 and December 31, 2024, respectively. The Company incurred $0.4 million and $2.7 million of interest expense related to FHLB advances or other short-term borrowings for the three and nine months ended September 30, 2025, respectively. During the three and nine months ended September 30, 2024, the Company incurred $0.5 million and $3.8 million, respectively, of interest expense related to FHLB advances or other short-term borrowings.
Previous wording
Net income totaled $34.0 million and $58.3 million, or $0.88 and $1.51 per diluted share, during the three and six months ended June 30, 2025, respectively. During the three and six months ended June 30, 2024, net income totaled $26.1 million and $57.5 million, or $0.68 and $1.50 per diluted share, respectively. FTE pre-provision net revenue increased $8.6 million, or 11.2%, to $85.4 million during the six months ended June 30, 2025, compared to the same period in the prior year. The return on average tangible assets was 1.49% and 1.29% during the three and six months ended June 30, 2025, respectively, and the return on average tangible common equity was 14.18% and 12.44%, respectively. During the three and six months ended June 30, 2024, the return on average tangible assets was 1.17% and 1.28%, respectively, and the return on average tangible common equity was 12.44% and 13.77%, respectively.
Current wording
Net income totaled $35.3 million and $93.5 million, or $0.92 and $2.43 per diluted share, during the three and nine months ended September 30, 2025, respectively. During the three and nine months ended September 30, 2024, net income totaled $33.1 million and $90.6 million, or $0.86 and $2.36 per diluted share, respectively. Pre-provision net revenue FTE increased $8.5 million, or 7.1%, to $129.0 million during the nine months ended September 30, 2025, compared to the same period in the prior year. The return on average tangible assets was 1.54% and 1.38% during the three and nine months ended September 30, 2025, respectively, and the return on average tangible common equity was 14.21% and 13.05%, respectively. During the three and nine months ended September 30, 2024, the return on average tangible assets was 1.43% and 1.33%, respectively, and the return on average tangible common equity was 14.84% and 14.14%, respectively.
Showing the first 40 of 64 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
prospective basis. Early adoption is permitted. The Company has evaluated the impact from ASU 2025-05 and does not expect the adoption of this pronouncement to have a material impact on its financial statements.
Current report — wording carried from elsewhere
generally trades are based upon market views of prepayment and liquidity risk and not credit risk. The Company has no intention to sell the securities and believes it will not be required to sell the securities before the recovery of their amortized cost.
Current report — wording carried from elsewhere
impairment related to equity method investments for the nine months ended September 30, 2025 or the year ended December 31, 2024.
Current report — wording carried from elsewhere
agriculture loans and exclude homogeneous loans such as residential real estate and consumer loans. Specific allowances are determined by collectively analyzing:
Current report — wording carried from elsewhere
interest rate environment and market conditions, our consumer banking strategy is to focus on attracting and maintaining both lower-cost transaction accounts and time deposits.
Rearranged previous paragraphs (6)
Previous report — wording carried elsewhere
points. While further cuts in 2025 remain unclear, our future earnings will be impacted by the Federal Reserve’s future interest rate policy decisions. Management employs risk management policies to monitor and limit exposure to changes in market rates, which is discussed in more detail in the Asset/Liability Management and Interest Rate Risk section of Management’s Discussion and Analysis.
Previous report — wording carried elsewhere
purchases of held-to-maturity securities during the six months ended June 30, 2024. Paydowns and maturities totaled $76.7 million and $30.7 million during the six months ended June 30, 2025 and 2024, respectively.
Previous report — wording carried elsewhere
New loan origination is a direct result of our ability to recruit and retain top banking talent, connect with clients in our markets and provide needed services at competitive rates. Loan fundings totaled $1.4 billion over the trailing 12 months, led by commercial loan
Previous report — wording carried elsewhere
The Company’s policy is to review each prospective credit to determine the appropriateness and the adequacy of security or collateral prior to making a loan. In the event of borrower default, the Company seeks recovery in compliance with lending laws, the respective
Previous report — wording carried elsewhere
ACL accounting policy involves judgments, estimates and uncertainties that are subject to change. For periods beyond the reasonable and supportable forecast period, the Company reverts to historical long-term average loss rates on a straight-line basis.
Previous report — wording carried elsewhere
loan demand, reinvest in the investment securities portfolio, or provide optionality for reductions in our deposit funding base. At June 30, 2025, the duration of the investment securities portfolio was 4.0 years and the weighted average life was 4.8 years.