National Bank Holdings Corporation sold $130 million in investment securities to enhance future earnings, incurring a $5 million loss.
Quiver AI Summary
National Bank Holdings Corporation (NBHC) announced the sale of approximately $130 million in available-for-sale investment securities, representing about 20% of its AFS portfolio, as part of a strategy to enhance its balance sheet and drive future earnings. The sale will lead to an after-tax loss of around $5 million, which will be reflected in the fourth quarter of 2024. Proceeds from the sale are planned to be reinvested into higher-yielding securities. Chairman and CEO Tim Laney emphasized the bank's strong capital position and its commitment to generating growth for shareholders. NBHC operates a network of over 90 banking centers across several states, providing a variety of services to different client segments.
Potential Positives
- The sale of approximately $130 million in available-for-sale investment securities demonstrates the company's proactive approach to balance sheet management aimed at enhancing future earnings.
- Redeployment of the proceeds into higher yielding securities indicates a strategic focus on improving investment returns for shareholders.
- The ability to manage the balance sheet effectively, as noted by the CEO, highlights the company's solid capital position, which enhances its financial stability.
- The press release reinforces the company’s commitment to its community banking strategy with over 90 banking centers and a strong operational footprint across several states.
Potential Negatives
- The sale of approximately $130 million in available-for-sale investment securities represents a significant 20% reduction of the Company's AFS portfolio, which could raise concerns about the overall financial health and investment strategy.
- Recording an after-tax loss of approximately $5 million may impact the Company’s earnings and investor sentiment negatively.
- The necessity to sell these securities to maximize the balance sheet and drive future earnings may imply a lack of alternative options for maintaining financial stability, potentially indicating underlying challenges within the Company’s investment strategy.
FAQ
What securities did National Bank Holdings Corporation sell?
National Bank Holdings Corporation sold approximately $130 million of available-for-sale investment securities from its portfolio.
What was the impact of the securities sale on earnings?
The sale resulted in an after-tax loss of approximately $5 million, which will be recorded in the fourth quarter of 2024.
What is the goal of the securities sale?
The goal is to proactively maximize the balance sheet and drive future earnings for shareholders.
How does National Bank Holdings Corporation plan to use the proceeds?
Proceeds from the sale will be redeployed over time into higher yielding securities.
Where does National Bank Holdings Corporation operate?
The corporation operates in Colorado, Kansas City, Utah, Wyoming, Texas, New Mexico, and Idaho with over 90 banking centers.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$NBHC Insider Trading Activity
$NBHC insiders have traded $NBHC stock on the open market 16 times in the past 6 months. Of those trades, 0 have been purchases and 16 have been sales.
Here’s a breakdown of recent trading of $NBHC stock by insiders over the last 6 months:
- RICHARD U JR. NEWFIELD (CHIEF RISK MNGMT OFFICER) sold 19,259 shares.
- VALERIE D. KRAMER (Chief Digital Officer) has traded it 4 times. They made 0 purchases and 4 sales, selling 3,175 shares.
- CHRISTOPHER S. RANDALL (EVP, COMM. & SPECIALTY BANKING) sold 3,750 shares.
- G. TIMOTHY LANEY (CHIEF EXECUTIVE OFFICER) has traded it 3 times. They made 0 purchases and 3 sales, selling 65,863 shares.
- RALPH W CLERMONT has traded it 2 times. They made 0 purchases and 2 sales, selling 20,000 shares.
- ROBERT E DEAN sold 4,057 shares.
- DENABEELE NICOLE VAN (CHIEF ACCOUNTING OFFICER) sold 2,652 shares.
- ART ZEILE sold 3,875 shares.
- PATRICK G. SOBERS has traded it 2 times. They made 0 purchases and 2 sales, selling 18,738 shares.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$NBHC Hedge Fund Activity
We have seen 67 institutional investors add shares of $NBHC stock to their portfolio, and 90 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- VICTORY CAPITAL MANAGEMENT INC added 1,021,829 shares (+56.0%) to their portfolio in Q3 2024
- WELLINGTON MANAGEMENT GROUP LLP removed 326,773 shares (-8.6%) from their portfolio in Q3 2024
- PRINCIPAL FINANCIAL GROUP INC added 208,303 shares (+36.1%) to their portfolio in Q3 2024
- WESTWOOD HOLDINGS GROUP INC added 201,573 shares (+21.8%) to their portfolio in Q3 2024
- LEEWARD INVESTMENTS, LLC - MA added 146,494 shares (+64.2%) to their portfolio in Q3 2024
- KENNEDY CAPITAL MANAGEMENT LLC removed 137,101 shares (-22.6%) from their portfolio in Q3 2024
- STATE STREET CORP added 126,796 shares (+7.6%) to their portfolio in Q3 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
DENVER, Dec. 18, 2024 (GLOBE NEWSWIRE) -- National Bank Holdings Corporation (NYSE: NBHC, or the “Company”) announced today that it sold approximately $130 million of available-for-sale (“AFS”) investment securities on the open market. The securities sale is part of the Company’s strategy to proactively maximize the balance sheet with the goal of driving future earnings. The securities sold represented approximately 20% of the Company’s AFS portfolio and resulted in an after-tax loss of approximately $5 million that will be recorded in the fourth quarter of 2024. Proceeds from the sale will be redeployed over time into higher yielding securities.
“Through our solid capital position, we are able to effectively manage our balance sheet while enhancing future earnings growth for our shareholders,” said Chairman and CEO, Tim Laney.
About National Bank Holdings Corporation
National Bank Holdings Corporation is a bank holding company created to build a leading community bank franchise delivering high quality client service and committed to stakeholder results. Through its bank subsidiaries, NBH Bank and Bank of Jackson Hole Trust, National Bank Holdings Corporation operates a network of over 90 banking centers, serving individual consumers, small, medium and large businesses, and government and non-profit entities. Its banking centers are located in its core footprint of Colorado, the greater Kansas City region, Utah, Wyoming, Texas, New Mexico and Idaho. Its comprehensive residential mortgage banking group primarily serves the bank’s core footprint. Its trust business is operated in its core footprint under the Bank of Jackson Hole Trust charter. NBH Bank operates under a single state charter through the following brand names as divisions of NBH Bank: in Colorado, Community Banks of Colorado and Community Banks Mortgage; in Kansas and Missouri, Bank Midwest and Bank Midwest Mortgage; in Utah, Texas, New Mexico and Idaho, Hillcrest Bank and Hillcrest Bank Mortgage; and in Wyoming, Bank of Jackson Hole and Bank of Jackson Hole Mortgage. Additional information about National Bank Holdings Corporation can be found at www.nationalbankholdings.com .
For more information visit: cobnks.com, bankmw.com, hillcrestbank.com, bankofjacksonhole.com, or nbhbank.com. Or connect with any of our brands on LinkedIn.
Contact:
Analysts/Institutional Investors:
Emily Gooden, 720-554-6640
Chief Accounting Officer and Investor Relations Director
[email protected]
Nicole Van Denabeele, 720-554-6640
Chief Financial Officer
[email protected]
Media:
Jody Soper, 303-784-5925
Chief Marketing Officer
[email protected]
Source: National Bank Holdings Corporation
