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National Bank Holdings Corp (NBHC) is a bank holding company that operates through its subsidiary, National Bank of Alabama. The company offers a range of financial services, including deposit products, loans, credit cards, and wealth management services, to individuals and businesses.
As of February 2023, NBHC has a market capitalization of around $2.6 billion, making it a small-cap stock. The company's stock is listed on the NASDAQ stock exchange under the ticker symbol "NBHC".
Financial Performance:
In its most recent quarterly earnings release (Q4 2022), NBHC reported:
1. Net income available to common shareholders of $4.4 million, or $0.14 per diluted share.
2. Net interest income of $26.9 million, a decrease of 12.9% compared to the same quarter in the previous year.
3. Non-interest income of $2.8 million, a decrease of 17.6% compared to the same quarter in the previous year.
4. Provision for loan losses of $700,000, compared to $1.1 million in the same quarter in the previous year.
5. Net charge-offs of $1.1 million, or 0.15% of average loans, annualized.
Growth:
In terms of growth, NBHC has seen a mixed performance in recent years. The company's net interest income has been declining over the past few years, mainly due to lower interest rates and decreased loan volume. However, NBHC has been expanding its branch network and investing in digital banking capabilities to drive growth.
Earnings:
NBHC has consistently delivered earnings per share (EPS) growth over the past few years. In its most recent quarterly earnings release, the company reported EPS of $0.14, which represents a 25% increase compared to the same quarter in the previous year.
Valuation:
As of February 2023, NBHC's stock trades at a price-to-earnings ratio (P/E) of around 12.6, which is lower than the industry average of around 14.4 for banks and thrifts. The company's price-to-book ratio (P/B) is around 1.2, which is near its five-year average.
Conclusion:
NBHC is a small-cap bank holding company that has faced challenges in recent years due to declining interest rates and decreased loan volume. However, the company has been investing in digital banking capabilities and expanding its branch network to drive growth. While the company's financial performance has been mixed, it has consistently delivered EPS growth in recent years. As of February 2023, NBHC's stock trades at a relatively low valuation compared to its peers, which could make it an attractive opportunity for value investors.