Regional banking company National Bank Holdings (NYSE: NBHC) reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 3.7% year on year to $108.9 million. Its GAAP profit of $0.92 per share was 8.2% above analysts’ consensus estimates.
Is now the time to buy National Bank Holdings? Find out by accessing our full research report, it’s free for active Edge members.
National Bank Holdings (NBHC) Q3 CY2025 Highlights:
- Net Interest Income: $88.2 million vs analyst estimates of $90.75 million (flat year on year, 2.8% miss)
- Net Interest Margin: 4% vs analyst estimates of 4% (2.7 basis point beat)
- Revenue: $108.9 million vs analyst estimates of $104.8 million (3.7% year-on-year growth, 3.9% beat)
- Efficiency Ratio: 57.3% vs analyst estimates of 58.9% (158 basis point beat)
- EPS (GAAP): $0.92 vs analyst estimates of $0.85 (8.2% beat)
- Tangible Book Value per Share: $27.45 vs analyst estimates of $27.37 (11.7% year-on-year growth, in line)
- Market Capitalization: $1.39 billion
Company Overview
Operating under familiar local brands like Community Banks of Colorado, Bank Midwest, and Bank of Jackson Hole, National Bank Holdings (NYSE: NBHC) operates regional banks across Colorado, Kansas, Missouri, Wyoming, Texas, and other western states, offering commercial, business, and consumer banking services.
Sales Growth
From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Thankfully, National Bank Holdings’s 5.6% annualized revenue growth over the last five years was decent. Its growth was slightly above the average banking company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. National Bank Holdings’s recent performance shows its demand has slowed as its revenue was flat over the last two years. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, National Bank Holdings reported modest year-on-year revenue growth of 3.7% but beat Wall Street’s estimates by 3.9%.
Net interest income made up 77.6% of the company’s total revenue during the last five years, meaning lending operations are National Bank Holdings’s largest source of revenue.
Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.
Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend.
Tangible Book Value Per Share (TBVPS)
Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability.
This explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.
National Bank Holdings’s TBVPS grew at a mediocre 4.4% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 13.6% annually over the last two years from $21.26 to $27.45 per share.
Over the next 12 months, Consensus estimates call for National Bank Holdings’s TBVPS to grow by 3.5% to $28.40, paltry growth rate.
Key Takeaways from National Bank Holdings’s Q3 Results
We enjoyed seeing National Bank Holdings beat analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. On the other hand, its net interest income missed. Zooming out, while it was a perfect quarter, we think it was a decent one. The stock traded up 1.2% to $37.49 immediately following the results.
So do we think National Bank Holdings is an attractive buy at the current price? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
