National Bank Holdings Q4 2025 National Bank Holdings Corp Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 National Bank Holdings Corp Earnings Call
Operator: Good morning, everyone, and welcome to the National Bank Holdings Corporation 2025 Q4 earnings call. My name is Rachel, and I will be your conference operator for today. At this time, all participants are in a listen-only mode. As a reminder, this conference is being recorded for replay purposes. I will now turn the call over to Emily Gooden, Chief Accounting Officer and Director of Investor Relations.
Operator: Good morning, everyone, and welcome to the National Bank Holdings Corporation 2025 Q4 earnings call. My name is Rachel, and I will be your conference operator for today. At this time, all participants are in a listen-only mode. As a reminder, this conference is being recorded for replay purposes. I will now turn the call over to Emily Gooden, Chief Accounting Officer and Director of Investor Relations.
Speaker #1: At this time, all participants are in a listen-only mode. As a reminder, this conference is being recorded for replay purposes. I will now turn the call over to Emily Gooden, Chief Accounting Officer and Director of Investor Relations.
Speaker #2: Thank you, Rachel, and good morning. We will begin today's call with prepared remarks, followed by a question-and-answer session. I would like to remind you that this conference call will contain forward-looking statements, including, but not limited to, statements regarding the company's strategy, loans, deposits, capital, net interest income, non-interest income, margins, allowance, taxes, and non-interest expense.
Emily Gooden: Thank you, Rachel, and good morning! We will begin today's call with prepared remarks, followed by a question-and-answer session. I would like to remind you that this conference call will contain forward-looking statements, including but not limited to statements regarding the company's strategy, loans, deposits, capital, net interest income, non-interest income, margins, allowance, taxes, and non-interest expense. Actual results could differ materially from those discussed today. These forward-looking statements are subject to risks, uncertainties, and other factors, which are disclosed in more detail in the company's most recent filings with the US Securities and Exchange Commission. These statements speak only as of the date of this call, and National Bank Holdings Corporation undertakes no obligation to update or revise these statements. In addition, the call today will reference certain non-GAAP measures, which National Bank Holdings Corporation believes provide useful information for investors.
Emily Gooden: Thank you, Rachel, and good morning! We will begin today's call with prepared remarks, followed by a question-and-answer session. I would like to remind you that this conference call will contain forward-looking statements, including but not limited to statements regarding the company's strategy, loans, deposits, capital, net interest income, non-interest income, margins, allowance, taxes, and non-interest expense. Actual results could differ materially from those discussed today. These forward-looking statements are subject to risks, uncertainties, and other factors, which are disclosed in more detail in the company's most recent filings with the US Securities and Exchange Commission. These statements speak only as of the date of this call, and National Bank Holdings Corporation undertakes no obligation to update or revise these statements. In addition, the call today will reference certain non-GAAP measures, which National Bank Holdings Corporation believes provide useful information for investors.
Speaker #2: Actual results could differ materially from those discussed today. These forward-looking statements are subject to risk uncertainties and other factors, which are disclosed in more detail in the company's most recent filings with the US Securities and Exchange Commission.
Speaker #2: These statements speak only as of the date of this call, and National Bank Holdings Corporation undertakes no obligation to update or revise these statements.
Speaker #2: In addition, the call today will reference certain non-GAAP measures, which National Bank Holdings Corporation believes provide useful information for investors. Reconciliations of these non-GAAP financial measures to the GAAP measures are provided in the news release posted on the Investor Relations section of www.nationalbankholdings.com.
Emily Gooden: Reconciliations of these non-GAAP financial measures to the GAAP measures are provided in the news release posted on the investor relations section of www.nationalbankholdings.com. It is now my pleasure to turn the call over and introduce National Bank Holdings Corporation's Chairman and CEO, Mr. Tim Laney.
Reconciliations of these non-GAAP financial measures to the GAAP measures are provided in the news release posted on the investor relations section of www.nationalbankholdings.com. It is now my pleasure to turn the call over and introduce National Bank Holdings Corporation's Chairman and CEO, Mr. Tim Laney.
Speaker #2: It is now my pleasure to turn the call over and introduce National Bank Holdings Corporation's Chairman and CEO, Mr. Tim Laney.
Speaker #3: Well, thank you, Emily. Good morning, and thank you for joining us as we discuss National Bank Holdings' fourth quarter and full year 2025 financial performance.
Tim Laney: Well, thank you, Emily. Good morning, and thank you for joining us as we discuss National Bank Holdings' Q4 and full year 2025 financial performance. I'm joined by John Steinmetz, our Executive Vice Chair and Executive Managing Director of Strategic Initiatives, our President, Aldis Birkans, John Finn, our Chief Enterprise Technology Officer, and of course, our Chief Financial Officer, Nicole Van Denabeele. I'll begin this morning by extending a very warm welcome to our new Vista teammates who joined the NBH family earlier this month. Turning to the Q4 and full year 2025, while the Q4 was noisy, we ended the year having grown tangible book per share by 10%, and we grew our CET1 capital ratio to 14.89%.
Tim Laney: Well, thank you, Emily. Good morning, and thank you for joining us as we discuss National Bank Holdings' Q4 and full year 2025 financial performance. I'm joined by John Steinmetz, our Executive Vice Chair and Executive Managing Director of Strategic Initiatives, our President, Aldis Birkans, John Finn, our Chief Enterprise Technology Officer, and of course, our Chief Financial Officer, Nicole Van Denabeele. I'll begin this morning by extending a very warm welcome to our new Vista teammates who joined the NBH family earlier this month. Turning to the Q4 and full year 2025, while the Q4 was noisy, we ended the year having grown tangible book per share by 10%, and we grew our CET1 capital ratio to 14.89%.
Speaker #3: I'm joined by John Steinmetz, our Executive Vice Chair and Executive Managing Director of Strategic Initiatives, our President, Aldis Birkans, John Finn, our Chief Enterprise Technology Officer, and of course, our Chief Financial Officer, Nicole Denabeele.
Speaker #3: I'll begin this morning by extending a very warm welcome to our new VISTA teammates who joined the NBH family earlier this month. Turning to the fourth quarter and full year 2025, while the fourth quarter was noisy, we ended the year having grown tangible book value per share by 10%, and we grew our CET1 capital ratio to 14.89%.
Speaker #3: I'm pleased with our swift closure of the VISTA Bank acquisition and believed our combined organization will produce powerful results. Results that Nicole will guide us through when she presents.
Tim Laney: I'm pleased with our swift closure of the Vista Bank acquisition and believed our combined organization will produce powerful results, results that Nicole will guide us through when she presents. It was a noisy Q4 with one-time acquisition costs, the strategic sale of securities, and a move to put any lingering problem loans behind us. Our goal was to enter 2026 with a clean slate and with a focus on profitable growth. I'll touch on 2UniFi later in the call, but share for now that we're pleased to have completed phase one of the 2UniFi build, and we're joined by John Finn, who co-leads 2UniFi, and he'll cover our progress in detail in just a bit.
I'm pleased with our swift closure of the Vista Bank acquisition and believed our combined organization will produce powerful results, results that Nicole will guide us through when she presents. It was a noisy Q4 with one-time acquisition costs, the strategic sale of securities, and a move to put any lingering problem loans behind us. Our goal was to enter 2026 with a clean slate and with a focus on profitable growth. I'll touch on 2UniFi later in the call, but share for now that we're pleased to have completed phase one of the 2UniFi build, and we're joined by John Finn, who co-leads 2UniFi, and he'll cover our progress in detail in just a bit.
Speaker #3: It was a noisy fourth quarter with one-time acquisition costs. The strategic sale of securities and a move to put any lingering problem loans behind us.
Speaker #3: Our goal was to enter 2026 with a clean slate and with a focus on profitable growth. I'll touch on two unifies later in the call, but share for now that we're pleased to have completed phase one of the two unified build, and we're joined by John Finn, who co-leads two unified, and he'll cover our progress in detail in just a bit.
Speaker #3: Before I hand off to Nicole, I also want to compliment our bankers on their deposit and loan pricing discipline, which led us to close out the year with a net interest income margin of 3.97%.
Tim Laney: Before I hand off to Nicole, I also want to compliment our bankers on their deposit and loan pricing discipline, which led us to close out the year with a net interest income margin of 3.97%. I believe we are set up for a beautiful 2026. Nicole?
Before I hand off to Nicole, I also want to compliment our bankers on their deposit and loan pricing discipline, which led us to close out the year with a net interest income margin of 3.97%. I believe we are set up for a beautiful 2026. Nicole?
Speaker #3: I believe we are set up for a beautiful 2026.
Speaker #3: Nicole? Thank you, Tim, and good
Nicole Van Denabeele: Thank you, Tim, and good morning. Today, I'll review the Q4 and full year 2025 financial highlights and provide guidance for 2026. Our guidance reflects the combined organization and, consistent with past practice, excludes the impact of any future Fed rate decisions. In 2025, we executed on key strategic priorities. We announced and have now closed the Vista acquisition within 4 months, grew tangible book value by 10%, and delivered a full year net interest margin of 3.94%. Q4's results were impacted by elevated provision expense and one-time items, including $4.1 million in after-tax acquisition costs and a $2.6 million after-tax loss on the strategic sale of investment securities to remain below $10 billion in assets at year-end.
Nicole Van Denabeele: Thank you, Tim, and good morning. Today, I'll review the Q4 and full year 2025 financial highlights and provide guidance for 2026. Our guidance reflects the combined organization and, consistent with past practice, excludes the impact of any future Fed rate decisions. In 2025, we executed on key strategic priorities. We announced and have now closed the Vista acquisition within 4 months, grew tangible book value by 10%, and delivered a full year net interest margin of 3.94%. Q4's results were impacted by elevated provision expense and one-time items, including $4.1 million in after-tax acquisition costs and a $2.6 million after-tax loss on the strategic sale of investment securities to remain below $10 billion in assets at year-end.
Speaker #4: morning. Today, I'll review the fourth quarter and full year 2025 financial highlights, and provide guidance for 2026. Our guidance reflects the combined organization, and consistent with past practice, excludes the impact of any future Fed rate decision.
Speaker #4: In 2025, we executed on key strategic priorities. We announced and have now closed the VISTA acquisition within four months, grew tangible book value by 10%, and delivered a full-year net interest margin of 3.94%.
Speaker #4: Fourth quarter's results were impacted by elevated provision expense, and one-time items including 4.1 million dollars in after-tax acquisition costs, and a 2.6 million dollar after-tax loss on the strategic sale of investment securities, to remain below 10 billion in assets at year-end.
Speaker #4: As a reminder, this action will preserve approximately 10 million dollars in interchange income for one more year. Excluding one-time items, fourth quarter net income totaled 22.7 million dollars, or 60 cents of earnings per diluted share.
Nicole Van Denabeele: As a reminder, this action will preserve approximately $10 million in interchange income for one more year. Excluding one-time items, Q4 net income totaled $22.7 million, or $0.60 of earnings per diluted share. As Tim shared, we addressed a specific set of problem loans during the quarter. This resulted in $9.1 million of provision expense related to charge-offs and specific reserves. For the full year 2025, on an adjusted basis, net income totaled $117.6 million, or $3.06 of earnings per diluted share. Return on tangible assets was 1.3%, and return on tangible common equity was 12.2%.
As a reminder, this action will preserve approximately $10 million in interchange income for one more year. Excluding one-time items, Q4 net income totaled $22.7 million, or $0.60 of earnings per diluted share. As Tim shared, we addressed a specific set of problem loans during the quarter. This resulted in $9.1 million of provision expense related to charge-offs and specific reserves. For the full year 2025, on an adjusted basis, net income totaled $117.6 million, or $3.06 of earnings per diluted share. Return on tangible assets was 1.3%, and return on tangible common equity was 12.2%.
Speaker #4: As Tim shared, we addressed a specific set of problem loans during the quarter, this resulted in 9.1 million dollars of provision expense related to charge-offs in specific reserves.
Speaker #4: For the full year 2025, on an adjusted basis, net income totaled 117.6 million dollars, or 3 dollars and 6 cents of earnings per diluted share, return on tangible assets was 1.3%, and return on tangible common 12.2%.
Speaker #4: During 2025, we maintained a top quartile full-year net interest margin of 3.94%, generated $1.6 billion of new loan origination, executed share buybacks, and added to our robust capital base.
Nicole Van Denabeele: During 2025, we maintained a top quartile full-year net interest margin of 3.94%, generated $1.6 billion of new loan origination, executed share buybacks, and added to our robust capital base. We are pleased to have added a number of experienced bankers to our team through the Vista acquisition. We kick off the year with a combined loan portfolio of approximately $9.4 billion and are projecting 2026 loan growth to be approximately 10%. At acquisition closing, we added approximately $2.4 billion of earning assets from Vista to our balance sheet. As we optimize the total cash and investment portfolio mix, we project the combined bank to generate earning asset growth of 7% to 10% during 2026.
During 2025, we maintained a top quartile full-year net interest margin of 3.94%, generated $1.6 billion of new loan origination, executed share buybacks, and added to our robust capital base. We are pleased to have added a number of experienced bankers to our team through the Vista acquisition. We kick off the year with a combined loan portfolio of approximately $9.4 billion and are projecting 2026 loan growth to be approximately 10%. At acquisition closing, we added approximately $2.4 billion of earning assets from Vista to our balance sheet. As we optimize the total cash and investment portfolio mix, we project the combined bank to generate earning asset growth of 7% to 10% during 2026.
Speaker #4: We are pleased to have added a number of experienced bankers to our team through the VISTA acquisition. We kick off the year with a combined loan portfolio of approximately $9.4 billion and are projecting 2026 loan growth to be approximately 10%.
Speaker #4: At acquisition closing, we added approximately 2.4 billion dollars of earning assets from VISTA to our balance sheet. As we optimize the total cash and investment portfolio mix, we project the combined bank to generate earning asset growth of 7 to 10% during 2026.
Speaker #4: Our goal is to hold approximately 15% of total assets in cash and investments and maintain a loan-to-deposit ratio of approximately 90%. Fully taxable equivalent net interest margin for the fourth quarter was 3.89%, and was impacted by variable rate loans repricing well ahead of Fed rate cuts.
Nicole Van Denabeele: Our goal is to hold approximately 15% of total assets in cash and investments and maintain a loan-to-deposit ratio of approximately 90%. Fully taxable equivalent net interest margin for Q4 was 3.89% and was impacted by variable rate loans repricing well ahead of Fed rate cuts. However, we cut deposit rates in tandem with the Fed, creating a lag effect in our cost of deposits. Most of this has now worked its way through our balance sheet, and December's margin returned to a strong 3.97%. Similarly, Vista's December margin was 4%. As a result, we project 2026 fully taxable equivalent net interest margin to remain right around 4%, excluding the impact of future rate moves.
Our goal is to hold approximately 15% of total assets in cash and investments and maintain a loan-to-deposit ratio of approximately 90%. Fully taxable equivalent net interest margin for Q4 was 3.89% and was impacted by variable rate loans repricing well ahead of Fed rate cuts. However, we cut deposit rates in tandem with the Fed, creating a lag effect in our cost of deposits. Most of this has now worked its way through our balance sheet, and December's margin returned to a strong 3.97%. Similarly, Vista's December margin was 4%. As a result, we project 2026 fully taxable equivalent net interest margin to remain right around 4%, excluding the impact of future rate moves.
Speaker #4: However, we cut deposit rates in tandem with the Fed, creating a lag effect in our cost of deposits. Most of this has now worked its way through our balance sheet and December's margin returned to a strong 3.97%.
Speaker #4: Similarly, VISTA's December margin was 4%. As a result, we project 2026 fully taxable equivalent net interest margin to remain right around 4%, excluding the impact of future rate moves.
Speaker #4: Turning to credit, our non-performing asset ratio improved 11 basis points during 2025 to end the year at a low 36 basis points of total loans.
Nicole Van Denabeele: Turning to credit, our non-performing asset ratio improved 11 basis points during 2025 to end the year at a low 36 basis points of total loans. The criticized loan ratio improved 73 basis points during the year. Net charge-offs were 34 basis points of loans for the year, and the allowance to total loans ratio ended the year at 1.18%, consistent with the prior quarter. We continue to hold $16.8 million of marks against our acquired loan portfolio as of December 31, providing an additional 23 basis points of loan loss coverage if applied across the NBH legacy loan book. We will be adding marks from Vista's loans during the first quarter of this year.
Turning to credit, our non-performing asset ratio improved 11 basis points during 2025 to end the year at a low 36 basis points of total loans. The criticized loan ratio improved 73 basis points during the year. Net charge-offs were 34 basis points of loans for the year, and the allowance to total loans ratio ended the year at 1.18%, consistent with the prior quarter. We continue to hold $16.8 million of marks against our acquired loan portfolio as of December 31, providing an additional 23 basis points of loan loss coverage if applied across the NBH legacy loan book. We will be adding marks from Vista's loans during the first quarter of this year.
Speaker #4: The criticized loan ratio improved 73 basis points during the year. Net charge-offs were 34 basis points of loans for the year, and the allowance to total loans ratio ended the year at 1.18%, consistent with the prior quarter.
Speaker #4: We continue to hold 16.8 million dollars of marks against our acquired loan portfolio as of December 31st, providing an additional 23 basis points of loan loss coverage if applied across the MBH legacy loan book.
Speaker #4: We will be adding marks from VISTA's loans during the first quarter of this year. We project the provision expense in 2026 to cover net charge-offs and new loan growth at a rate consistent with the current 1.2% allowance to total loans non-interest income was ratio.
Nicole Van Denabeele: We project the provision expense in 2026 to cover net charge-offs and new loan growth at a rate consistent with the current 1.2% allowance to total loans ratio. Q4 non-interest income was $14.4 million and included $3.3 million in pre-tax securities losses. For 2026, we project total non-interest income to be in the range of $75 to 80 million. Q4 non-interest expense totaled $72.4 million, including $5.4 million of acquisition costs. Also included in the Q4's expense were investments made in bankers in our resort markets. Full-year non-interest expense was $265 million, including $7.2 million in acquisition costs and $22 million related to 2UniFi.
We project the provision expense in 2026 to cover net charge-offs and new loan growth at a rate consistent with the current 1.2% allowance to total loans ratio. Q4 non-interest income was $14.4 million and included $3.3 million in pre-tax securities losses. For 2026, we project total non-interest income to be in the range of $75 to 80 million. Q4 non-interest expense totaled $72.4 million, including $5.4 million of acquisition costs. Also included in the Q4's expense were investments made in bankers in our resort markets. Full-year non-interest expense was $265 million, including $7.2 million in acquisition costs and $22 million related to 2UniFi.
Speaker #4: Fourth quarter 14.4 million dollars and included 3.3 million dollars in pre-tax securities losses. For 2026, we project total non-interest income to be in the range of 75 to 80 million dollars.
Speaker #4: Fourth quarter non-interest expense totaled $72.4 million, including $5.4 million of acquisition costs. Also included in the fourth quarter's expense were investments made in bankers in our resort markets.
Speaker #4: Full year non-interest expense was 265 million dollars, including 7.2 million dollars in acquisition costs and 22 million dollars related to two unified. For 2026, we project non-interest expense of 320 to 330 million dollars, reflecting a full year of VISTA expenses.
Nicole Van Denabeele: For 2026, we project non-interest expense of $320 to $330 million, reflecting a full year of Vista expenses. We project expenses during the first half of the year in the range of $165 to $170 million. This means lower expenses in the back half of the year, reflecting cost savings from operational efficiencies generated by the combined organization following the completion of system integration. During 2026, we expect to incur one-time expenses associated with the acquisition and rebranding. In addition, we may recognize CECL day one provision expense, depending on our final purchase accounting approach. As Tim shared, we are pleased to have completed the initial phase of 2UniFi in 2025 with the launch of our fully automated SBA loan offering last quarter....
For 2026, we project non-interest expense of $320 to $330 million, reflecting a full year of Vista expenses. We project expenses during the first half of the year in the range of $165 to $170 million. This means lower expenses in the back half of the year, reflecting cost savings from operational efficiencies generated by the combined organization following the completion of system integration. During 2026, we expect to incur one-time expenses associated with the acquisition and rebranding. In addition, we may recognize CECL day one provision expense, depending on our final purchase accounting approach. As Tim shared, we are pleased to have completed the initial phase of 2UniFi in 2025 with the launch of our fully automated SBA loan offering last quarter....
Speaker #4: first half of the year in the range of 165 to We project expenses during the 170 million dollars. This means lower expenses in the back half of the year reflecting cost savings from operational efficiencies generated by the combined organization following the completion of system integration.
Speaker #4: During 2026, we expect to incur one-time expenses associated with the acquisition and rebranding. In addition, we may recognize Cecil Dayone provision expense depending on our final purchase accounting approach.
Speaker #4: As Tim shared, we are pleased to have completed the initial phase of two unified in 2025 with the launch of our fully automated SBA loan offering last quarter.
Speaker #4: With the core technology infrastructure now in place, we expect a substantial reduction in capital expenditures for two unified in 2026. This shift positions us to begin realizing operating leverage from the platform.
Nicole Van Denabeele: With the core technology infrastructure now in place, we expect a substantial reduction in capital expenditures for 2UniFi in 2026. This shift positions us to begin realizing operating leverage from the platform. For 2026, we expect $2 to 4 million in 2UniFi revenue contribution, which is included in my fee income guidance. Importantly, we expect to maintain flat year-over-year 2UniFi expense, even with 2026 reflecting a full year of capitalized asset depreciation, which is approximately half of 2UniFi's 2026 expense. This means significantly lower cash spend in 2026. Turning to income taxes, the 2025 effective tax rate was 18%. With the integration of Vista and the resulting shift in the mix of taxable versus non-taxable income, we expect our effective tax rate to be approximately 20% for 2026.
With the core technology infrastructure now in place, we expect a substantial reduction in capital expenditures for 2UniFi in 2026. This shift positions us to begin realizing operating leverage from the platform. For 2026, we expect $2 to 4 million in 2UniFi revenue contribution, which is included in my fee income guidance. Importantly, we expect to maintain flat year-over-year 2UniFi expense, even with 2026 reflecting a full year of capitalized asset depreciation, which is approximately half of 2UniFi's 2026 expense. This means significantly lower cash spend in 2026. Turning to income taxes, the 2025 effective tax rate was 18%. With the integration of Vista and the resulting shift in the mix of taxable versus non-taxable income, we expect our effective tax rate to be approximately 20% for 2026.
Speaker #4: For 2026, we expect two to four million dollars in two unified revenue contributions, which is included in my fee income guidance. Importantly, we expect to maintain flat year-over-year two unified expense even with 2026 reflecting a full year of capitalized asset depreciation, which is approximately half of two unified's 2026 expense.
Speaker #4: This means significantly lower cash spend in 2026. Turning to income taxes, the 2025 effective tax rate was 18%. With the integration of VISTA and the resulting shift in the mix of taxable versus non-taxable income, we expect our effective tax rate to be approximately 20% for 2026.
Speaker #4: Capital levels remain strong, and we continue to grow our excess capital. We ended the year with a TCE ratio of 11%, tier one leverage ratio of 11.6%, and a strong common equity tier one ratio of 14.9%.
Nicole Van Denabeele: Capital levels remain strong, and we continue to grow our excess capital. We ended the year with a TCE ratio of 11%, Tier 1 leverage ratio of 11.6%, and a strong common equity Tier 1 ratio of 14.9%. We project a 2026 share count of 45.8 million shares, reflecting the Vista-related share issuance. On a final note, bringing this all together, we believe we are well-positioned to deliver earnings in excess of $1 per share in Q4 of 2026, which sets the stage for full-year earnings exceeding $4 per share in 2027. With that, I'll turn the call over to John Steinmetz.
Capital levels remain strong, and we continue to grow our excess capital. We ended the year with a TCE ratio of 11%, Tier 1 leverage ratio of 11.6%, and a strong common equity Tier 1 ratio of 14.9%. We project a 2026 share count of 45.8 million shares, reflecting the Vista-related share issuance. On a final note, bringing this all together, we believe we are well-positioned to deliver earnings in excess of $1 per share in Q4 of 2026, which sets the stage for full-year earnings exceeding $4 per share in 2027. With that, I'll turn the call over to John Steinmetz.
Speaker #4: We project a 2026 share count of 45.8 million shares reflecting the VISTA-related share issuance. On a final note, bringing this all together, we believe we are well positioned to deliver earnings and excess of one dollar per share in the fourth quarter of 2026.
Speaker #4: Which sets the stage for full-year earnings exceeding $4.00 per share in 2027. With that, I'll turn the call over to John.
Speaker #4: Steinmetz. Thank you, Nicole, and good morning.
John Steinmetz (National Bank Holdings Corporati: Thank you, Nicole, and good morning. On behalf of the Vista team, our stakeholders, and the entire NBH family, I am pleased to have successfully merged our organization with National Bank Holdings Corporation, and honored to be joining you on today's call. As the newest member of National Bank Holdings, I am fired up about the future of our combined company. We have partnered with a dynamic, high-performing team and platform, and I believe there's a tremendous potential for our combined organizations. It hasn't taken long to have my instincts confirmed that our companies are ideal partners for our shareholders and team members alike. With its strong leadership, consistent discipline around credit, and a vision to create one of the most respected and profitable financial institutions in the country, NBH has built a platform that uniquely positions our company for strong, continued, organic, and strategic growth.
John Steinmetz (National Bank Holdings Corporati: Thank you, Nicole, and good morning. On behalf of the Vista team, our stakeholders, and the entire NBH family, I am pleased to have successfully merged our organization with National Bank Holdings Corporation, and honored to be joining you on today's call. As the newest member of National Bank Holdings, I am fired up about the future of our combined company. We have partnered with a dynamic, high-performing team and platform, and I believe there's a tremendous potential for our combined organizations. It hasn't taken long to have my instincts confirmed that our companies are ideal partners for our shareholders and team members alike. With its strong leadership, consistent discipline around credit, and a vision to create one of the most respected and profitable financial institutions in the country, NBH has built a platform that uniquely positions our company for strong, continued, organic, and strategic growth.
Speaker #2: On behalf of the VISTA team, our stakeholders, and the entire MBH family, I am pleased to have successfully merged our organization with National Bank Holdings Corporation and honored to be joining you on today's call.
Speaker #2: As the newest member of National Bank Holdings, I am fired up about the future of our combined companies. We have partnered with a dynamic, high-performing team and platform, and I believe there's a tremendous potential for our combined organizations.
Speaker #2: It hasn't taken long to have my instincts confirmed that our companies are ideal partners for our shareholders and team members alike. With its strong leadership, consistent discipline around credit, and a vision to create one of the most respected and profitable financial institutions in the country, NBH has built a platform that is uniquely positions our company for strong continued organic and strategic growth.
Speaker #2: As a part of the MBH family, we are excited to have the opportunity to offer expanded services such as wealth management and trust services, an enhanced treasury management offering, added mortgage products, and a bigger balance sheet to support the growth of our valued clients.
John Steinmetz (National Bank Holdings Corporati: As a part of the NBH family, we are excited to have the opportunity to offer expanded services such as wealth management and trust services, an enhanced treasury management offering, added mortgage products, and a bigger balance sheet to support the growth of our valued clients. This broader product set will strengthen our relationships, deepen wallet share, and enable our exceptional bankers company-wide to better serve our clients through their financial life cycle. We are also honored that Tim and the board made the decision to adopt the Vista name as the go-forward brand in our diversified markets. It provides our combined teams a unified front and is a name that works well in both English and Spanish, further enforcing our commitment to taking the long view of better serving our clients in the future.
As a part of the NBH family, we are excited to have the opportunity to offer expanded services such as wealth management and trust services, an enhanced treasury management offering, added mortgage products, and a bigger balance sheet to support the growth of our valued clients. This broader product set will strengthen our relationships, deepen wallet share, and enable our exceptional bankers company-wide to better serve our clients through their financial life cycle. We are also honored that Tim and the board made the decision to adopt the Vista name as the go-forward brand in our diversified markets. It provides our combined teams a unified front and is a name that works well in both English and Spanish, further enforcing our commitment to taking the long view of better serving our clients in the future.
Speaker #2: This broader project set will strengthen our relationships, deepen wallet share, and enable our exceptional bankers, company-wide, to better serve our clients. Through their financial lifecycle.
Speaker #2: We are also honored that Tim and the board made the decision to adopt the VISTA name as the go-forward brand in our diversified markets.
Speaker #2: It provides our combined teams a unified front and is a name that works well in both English and Spanish, further enforcing our commitment to taking the long view of better serving our clients in the future.
Speaker #2: With a $2.7 trillion GDP, Texas is one of the fastest-growing economies—larger than most countries and consistently outperforming national averages. Texas' diversified, high-growth economy provides unlimited opportunities for our combined organizations.
John Steinmetz (National Bank Holdings Corporati: With $2.7 trillion GDP, Texas is one of the fastest-growing economies, larger than most countries, and consistently outperforming national averages. Texas's diversified, high-growth economy provides unlimited opportunities for our combined organizations. That said, I am also equally excited about the growth opportunities in the various resort markets we serve currently, such as Jackson Hole, Aspen, Vail, Telluride, and Palm Beach, Florida. Since the transaction, we have already added 3 presidents with over 45 years combined experience at their previous banks prior to joining NBH. These communities, once seen as primarily secondary home destinations, are now primary residents for wealthy baby boomers. This shift presents an opportunity to offer our white-glove, concierge, private client, and wealth management services, further setting our bank apart in a very crowded industry.
With $2.7 trillion GDP, Texas is one of the fastest-growing economies, larger than most countries, and consistently outperforming national averages. Texas's diversified, high-growth economy provides unlimited opportunities for our combined organizations. That said, I am also equally excited about the growth opportunities in the various resort markets we serve currently, such as Jackson Hole, Aspen, Vail, Telluride, and Palm Beach, Florida. Since the transaction, we have already added 3 presidents with over 45 years combined experience at their previous banks prior to joining NBH. These communities, once seen as primarily secondary home destinations, are now primary residents for wealthy baby boomers. This shift presents an opportunity to offer our white-glove, concierge, private client, and wealth management services, further setting our bank apart in a very crowded industry.
Speaker #2: That said, I am also equally excited about the growth opportunities in the various resort markets we serve currently, such as Jackson Hole, Aspen, Vale, Telluride, and Palm Beach, Florida.
Speaker #2: Since the transaction, we have already added three presidents with over 45 years combined experience at their previous banks. Prior to joining MBH, these communities once seen as primarily secondary home destinations are now primary residents for wealthy baby boomers.
Speaker #2: This shift presents an opportunity to offer our white-glove concierge private clients and wealth management services further setting our bank apart in a very crowded industry.
Speaker #2: Additionally, I am pleased to share with you that we are already seeing early momentum in our combined pipelines, fueled by the energy of our seasoned team members and enhanced capabilities, creating a clear path to value creation through relationship-driven profits.
John Steinmetz (National Bank Holdings Corporati: Additionally, I am pleased to share with you that we are already seeing early momentum in our combined pipelines, fueled by the energy of our seasoned team members and enhanced capabilities, creating a clear path to value creation through relationship-driven profits. Equally significant is the cultural fit between our two organizations. Over the past several months, the Vista Bank and NBH teams have united around a shared philosophy, putting people first, a focus on the value of teamwork and meritocracy, all while delivering exceptional results and building long-term relationships. These values drive results and further increase shareholder value. The legacy Vista team has been together for nearly two decades, and my commitment remains unwavering: to finance the American dream for those entrepreneurs brave enough to pursue it.
Additionally, I am pleased to share with you that we are already seeing early momentum in our combined pipelines, fueled by the energy of our seasoned team members and enhanced capabilities, creating a clear path to value creation through relationship-driven profits. Equally significant is the cultural fit between our two organizations. Over the past several months, the Vista Bank and NBH teams have united around a shared philosophy, putting people first, a focus on the value of teamwork and meritocracy, all while delivering exceptional results and building long-term relationships. These values drive results and further increase shareholder value. The legacy Vista team has been together for nearly two decades, and my commitment remains unwavering: to finance the American dream for those entrepreneurs brave enough to pursue it.
Speaker #2: Equally significant is the cultural fit between our two organizations. Over the past several months, the VISTA Bank and MBH teams have united around a shared philosophy, putting focus on the value of teamwork and people first, a meritocracy, all while delivering exceptional results and building long-term relationships.
Speaker #2: These value drive results and further increase shareholder value. The legacy VISTA team has been together for nearly two decades, and I'm, in my commitment, remains unwavering to finance the American dream for those entrepreneurs brave enough to pursue it.
Speaker #2: We invest in our communities, and we compete to win. And while striving to create the best place for our associates to call work. Having deep respect for Tim Aldis and the entire MBH team have built we couldn't be prouder to join the MBH family.
John Steinmetz (National Bank Holdings Corporati: We invest in our communities, and we compete to win, and while striving to create the best place for our associates to call work. Having having deep respect for Tim Laney and the entire NBH team have built, we couldn't be prouder to join the NBH family. I truly believe the best is yet to come. All that said, we are confident that our contributions will enhance NBH's growth profile, strengthen its market presence, and further expand shareholder value.
We invest in our communities, and we compete to win, and while striving to create the best place for our associates to call work. Having having deep respect for Tim Laney and the entire NBH team have built, we couldn't be prouder to join the NBH family. I truly believe the best is yet to come. All that said, we are confident that our contributions will enhance NBH's growth profile, strengthen its market presence, and further expand shareholder value.
Speaker #2: I truly believe the best is yet to come. All that said, we are confident that our contributions will enhance MBH's growth profile, strengthen its market presence, and further expand shareholder value.
Speaker #2: I'll close my remarks by thanking you for your trust and support, and now I'll hand off the call to my
Tim Laney: ... I'll close my remarks by thanking you for your trust and support. And now I'll hand off the call to my friend, Aldis.
... I'll close my remarks by thanking you for your trust and support. And now I'll hand off the call to my friend, Aldis.
Speaker #2: friend Aldis. All right.
Aldis Birkans: All right. Thanks, John, and good morning. I'll begin by highlighting what was a strong loan production quarter. We originated $591 million in total loans, the second highest loan production quarter in our company's history. I believe that performance is a direct reflection of our franchise strength and capability of our bankers. What I'm most proud of is the composition of that production. $429 million of that came from commercial loan originations, a new record for us. This drove our commercial loan portfolio growth to nearly 8% annualized. This is high quality, relationship-driven business that proves we are winning in our core markets. During Q4, we continued to see pressure on our commercial real estate loan balances. This decline was mostly driven by accelerated payoffs as clients moved toward alternative funding, like private credit, REITs, and life insurance companies.
Aldis Birkans: All right. Thanks, John, and good morning. I'll begin by highlighting what was a strong loan production quarter. We originated $591 million in total loans, the second highest loan production quarter in our company's history. I believe that performance is a direct reflection of our franchise strength and capability of our bankers. What I'm most proud of is the composition of that production. $429 million of that came from commercial loan originations, a new record for us. This drove our commercial loan portfolio growth to nearly 8% annualized. This is high quality, relationship-driven business that proves we are winning in our core markets. During Q4, we continued to see pressure on our commercial real estate loan balances. This decline was mostly driven by accelerated payoffs as clients moved toward alternative funding, like private credit, REITs, and life insurance companies.
Speaker #3: Thanks, John, and good morning. I'll begin by highlighting what was a strong loan production quarter. We originated $591 million in total loans—the second highest loan production quarter in our company's history.
Speaker #3: I believe that performance is a direct reflection of our franchise strength and capability of our bankers. What I'm most proud of is the composition of that production.
Speaker #3: 429 million dollars of that came from commercial loan originations. A new record for us. This drove our commercial loan portfolio growth to nearly 8% annualized.
Speaker #3: This is a high-quality, relationship-driven business that proves we are winning in our core markets. During the fourth quarter, we continued to see pressure on our commercial real estate loan balances.
Speaker #3: This decline was mostly driven by accelerated payoffs as clients moved toward alternative funding, like private credit companies, REITs, and life insurance. As a result, we improved our non-owner-occupied CRE to capital ratio to a low 127%.
Aldis Birkans: As a result, we improved our non-owner occupied CRE to capital ratio to a low 127%. And when we factor in the Vista balance sheet, we are starting the year comfortably below the 200% threshold, which gives us meaningful runway for growth moving forward. From a credit perspective, Tim and Nicole have already walked you through the actions we took during Q4, so I'll just simply add this: My expectation is that our asset quality metrics will continue their positive trends, returning to top quartile performance in 2026. I'm also very pleased to be working alongside John Steinmetz, as we expand our footprint in Texas and key resort markets. And together, we expect to deliver our 2026 targets, driven by profitable and prudent growth.
As a result, we improved our non-owner occupied CRE to capital ratio to a low 127%. And when we factor in the Vista balance sheet, we are starting the year comfortably below the 200% threshold, which gives us meaningful runway for growth moving forward. From a credit perspective, Tim and Nicole have already walked you through the actions we took during Q4, so I'll just simply add this: My expectation is that our asset quality metrics will continue their positive trends, returning to top quartile performance in 2026. I'm also very pleased to be working alongside John Steinmetz, as we expand our footprint in Texas and key resort markets. And together, we expect to deliver our 2026 targets, driven by profitable and prudent growth.
Speaker #3: And when we factor in the VISTA balance sheet, we are starting the year comfortably below the 200% threshold, which gives us meaningful runway for growth moving forward.
Speaker #3: From a credit perspective, Tim and Nicole have already walked you through the actions we took during the fourth quarter. So, I'll just simply add this.
Speaker #3: My expectation is that our asset quality metrics will continue their positive trends, returning to top quartile performance in 2026. I'm also very pleased to be working alongside John Steinman as we expand our footprint in Texas and key resort markets.
Speaker #3: And together, we expect to deliver our 2026 targets driven by profitable and prudent growth. When you combine the VISTA merger, with our planned organic growth across all markets, and recognize that we have reached our turning point forward to unify, the stage is set for a very compelling 2026.
Aldis Birkans: When you combine the Vista merger with our planned organic growth across all markets, and recognize that we have reached our turning point for 2UniFi, the stage is set for a very compelling 2026. With that, I will turn it back to Tim.
When you combine the Vista merger with our planned organic growth across all markets, and recognize that we have reached our turning point for 2UniFi, the stage is set for a very compelling 2026. With that, I will turn it back to Tim.
Speaker #3: With that, I will turn it back to
Speaker #3: Tim. Thank you, Aldis.
Tim Laney: Thank you, Aldis. I'll share a few thoughts on 2UniFi before handing off to John Finn. First, I want to congratulate the 2UniFi team on completing the phase one build. Second, make no mistake, during 2026, there will be an intense focus on new client activation and growing revenue. And finally, our goal is, before year-end, to have entered into a partnership that will meaningfully reduce NBH's 2UniFi investment run rate. With that said, I'll turn the call over to John Finn. John?
Tim Laney: Thank you, Aldis. I'll share a few thoughts on 2UniFi before handing off to John Finn. First, I want to congratulate the 2UniFi team on completing the phase one build. Second, make no mistake, during 2026, there will be an intense focus on new client activation and growing revenue. And finally, our goal is, before year-end, to have entered into a partnership that will meaningfully reduce NBH's 2UniFi investment run rate. With that said, I'll turn the call over to John Finn. John?
Speaker #1: I'll share a few thoughts on to unify before handing off to John Finn. First, I want to congratulate the two unified team on completing the phase one bill.
Speaker #1: Second, make no mistake, during 2026, there will be an intense focus on new client activation and growing revenue. And finally, our goal is, before year-end, to have entered into a partnership that will meaningfully reduce MBH's two unified investment run rate.
Speaker #1: With that said, I'll turn the call over to John Finn. John?
Speaker #3: Thank you, Tim. Today, I'm pleased to share more about the journey of two unified. As we unlock the future of small business banking, last quarter we reached a significant milestone with the launch of our SBA working capital loan.
John Finn: Thank you, Tim. Today, I'm pleased to share more about the journey of 2UniFi as we unlock the future of small business banking. Last quarter, we reached a significant milestone with the launch of our SBA working capital loan, integrated seamlessly into our platform alongside our innovative business suite deposit account. This achievement is a key moment in phase one of our multi-year strategy. Imagine a world where a small business owner can log in once and see their entire financial landscape, accounts, cash balances, and lending options, all in one, one unified view. We are revolutionizing the client experience well beyond traditional online banking, creating a seamless platform that helps a small business owner manage financial products and services across multiple banks and fintechs. With our integrated digital passport, we have transformed the application and onboarding process.
John Finn: Thank you, Tim. Today, I'm pleased to share more about the journey of 2UniFi as we unlock the future of small business banking. Last quarter, we reached a significant milestone with the launch of our SBA working capital loan, integrated seamlessly into our platform alongside our innovative business suite deposit account. This achievement is a key moment in phase one of our multi-year strategy. Imagine a world where a small business owner can log in once and see their entire financial landscape, accounts, cash balances, and lending options, all in one, one unified view. We are revolutionizing the client experience well beyond traditional online banking, creating a seamless platform that helps a small business owner manage financial products and services across multiple banks and fintechs. With our integrated digital passport, we have transformed the application and onboarding process.
Speaker #3: Integrated seamlessly into our platform alongside our innovative business suite deposit account. This achievement is a key moment in phase one of our multi-year strategy.
Speaker #3: Imagine a world where a small business owner can log in once and see their entire financial landscape—accounts, cash balances, and lending options—all in one unified view.
Speaker #3: We are revolutionizing the client experience. Well beyond traditional online banking, creating a seamless platform that helps a small business owner manage financial products and services across multiple banks and fintechs.
Speaker #3: With our integrated digital passport, we have transformed the application and onboarding process. Clients can provide their information once, and eliminate the need to reiterate for additional products, while opening an interest-bearing account or applying for a loan.
John Finn: Clients can provide their information once and eliminate the need to reiterate for additional products, whether opening an interest-bearing account or applying for a loan. Our innovative passport will ultimately enable business owners to effectively shop for financial services across a broad set of financial service providers. Now that our foundational infrastructure is in place, we are shifting gears from constructing systems to activating services. We're launching with two essential capabilities that small business owners need, beginning with a convenient access to SBA working capital loans, as well as an automated nightly sweep that earns interest on excess deposits, which is functionality typically reserved for larger mid-market clients. Our custom middleware and microservices architectures enables us to deliver advanced features like real-time event notifications and tailored communications. Clients receive faster decisions with clear and concise updates, saving time and reducing stress for business owners.
Clients can provide their information once and eliminate the need to reiterate for additional products, whether opening an interest-bearing account or applying for a loan. Our innovative passport will ultimately enable business owners to effectively shop for financial services across a broad set of financial service providers. Now that our foundational infrastructure is in place, we are shifting gears from constructing systems to activating services. We're launching with two essential capabilities that small business owners need, beginning with a convenient access to SBA working capital loans, as well as an automated nightly sweep that earns interest on excess deposits, which is functionality typically reserved for larger mid-market clients. Our custom middleware and microservices architectures enables us to deliver advanced features like real-time event notifications and tailored communications. Clients receive faster decisions with clear and concise updates, saving time and reducing stress for business owners.
Speaker #3: Our innovative passport will ultimately enable business owners to effectively shop for financial services across a broad set of financial service providers. Now that our foundational infrastructure is in place, we are shifting gears from constructing systems to activating services.
Speaker #3: We're launching with two essential capabilities that small business owners need: beginning with a convenient access to SBA working capital loans as well as an automated nightly sweep that earns interest on excess deposits, which is functionality typically reserved for larger, mid-market clients.
Speaker #3: Our custom middleware and microservices architectures enable us to deliver advanced features like real-time event notifications and tailored communications. Clients receive faster decisions with clear and concise updates, saving time and reducing stress for business owners.
Speaker #3: Our vision has always been clear: to build an integrated and seamless technology platform, not just another digital bank. Operating with a full-service banking charter, our scalable and secure architecture is supported by industry leaders like FinZac, Savannah, Visa, and Marketa.
John Finn: Our vision has always been clear: to build an integrated and seamless technology platform, not just another digital bank. Operating with a full-service banking charter, our scalable and secure architecture is supported by industry leaders like Finxact, Savana, Visa, and Marqeta. This ensures we have the best tools at our disposal to serve our clients effectively. Leveraging our technology with Snowflake and Microsoft Azure positions us to enable enterprise-grade data insights in upcoming releases. Our data architecture will support AI-driven, customizable datasets, enabling 2UniFi to provide valuable cash flow insights and proactive product recommendations based on clients' activity. This architecture also creates opportunities to develop new insights-based products and analytics-enabled services based on aggregated, anonymized data alongside deeper client analytics. As Tim has shared, we are optimistic about the formation of a partnership in 2026 that will accelerate our distribution and scale.
Our vision has always been clear: to build an integrated and seamless technology platform, not just another digital bank. Operating with a full-service banking charter, our scalable and secure architecture is supported by industry leaders like Finxact, Savana, Visa, and Marqeta. This ensures we have the best tools at our disposal to serve our clients effectively. Leveraging our technology with Snowflake and Microsoft Azure positions us to enable enterprise-grade data insights in upcoming releases. Our data architecture will support AI-driven, customizable datasets, enabling 2UniFi to provide valuable cash flow insights and proactive product recommendations based on clients' activity. This architecture also creates opportunities to develop new insights-based products and analytics-enabled services based on aggregated, anonymized data alongside deeper client analytics. As Tim has shared, we are optimistic about the formation of a partnership in 2026 that will accelerate our distribution and scale.
Speaker #3: This ensures we have the best tools at our disposal to serve our clients effectively. Leveraging our technology with Snowflake and Microsoft Azure, positions us to enable enterprise-grade data insights in upcoming releases.
Speaker #3: Our data architecture will support AI-driven, customizable data sets, enabling two unified views to provide valuable cash flow insights and proactive product recommendations based on clients' activity.
Speaker #3: This architecture also creates opportunities to develop new insights-based products and analytics-enabled services based on aggregated, anonymized data alongside deeper client analytics. As Tim has shared, we are optimistic about the formation of a partnership in 2026 that will accelerate our distribution and scale.
Speaker #3: Our full-service banking charter provides the partner with access to a tech-forward platform, including the ability to offer FDIC-insured deposit solutions nationwide. As we move forward beyond phase one, our investment in two unified will become more targeted, with a step-down in our capital expenditure run rate as the build phase gives way to more efficient operating profile.
John Finn: Our full-service banking charter provides the partner with access to tech, to a tech-forward platform, including the ability to offer FDIC-insured deposit solutions nationwide. As we move forward beyond phase one, our investment in 2UniFi will become more targeted with a step down in our capital expenditure run rate as the build phase gives way to more efficient operating profile. Importantly, we're scaling 2UniFi deliberately. We will onboard clients responsibly and optimize our controls, which we believe will translate into quality conversions and a more durable relationships over time. We are prioritizing a high-quality onboarding experience with robust fraud mitigation, because, as you know, building trust is foundational to long-term value creation. With a more efficient cost profile and a growing set of capabilities, we remain committed to building 2UniFi into a marketplace that we believe will compound value for small business owners and our shareholders alike.
Our full-service banking charter provides the partner with access to tech, to a tech-forward platform, including the ability to offer FDIC-insured deposit solutions nationwide. As we move forward beyond phase one, our investment in 2UniFi will become more targeted with a step down in our capital expenditure run rate as the build phase gives way to more efficient operating profile. Importantly, we're scaling 2UniFi deliberately. We will onboard clients responsibly and optimize our controls, which we believe will translate into quality conversions and a more durable relationships over time. We are prioritizing a high-quality onboarding experience with robust fraud mitigation, because, as you know, building trust is foundational to long-term value creation. With a more efficient cost profile and a growing set of capabilities, we remain committed to building 2UniFi into a marketplace that we believe will compound value for small business owners and our shareholders alike.
Speaker #3: Importantly, we're scaling two unified deliberately. We will onboard clients responsibly and optimize our controls which we believe will translate into quality conversions and a more durable relationship over time.
Speaker #3: We are prioritizing a high-quality onboarding experience with robust fraud mitigation. Because as you know, building trust is foundational to long-term value creation. With a more efficient cost profile and a growing set of capabilities, we remain committed to building two unified into a marketplace that we believe will compound value for small business owners and our shareholders alike.
Speaker #3: I appreciate the opportunity to provide this update on two
John Finn: I appreciate the opportunity to provide this update on Two Unify. I will now turn it back to Tim.
I appreciate the opportunity to provide this update on Two Unify. I will now turn it back to Tim.
Speaker #3: unified. I will now turn it back to Tim. All
Speaker #1: right. Well, thank you, John. We've covered a lot of ground this morning, so Rachel, I'll go ahead and ask you to open up the call for questions.
Tim Laney: All right. Well, thank you, John. We've covered a lot of ground this morning. So, Rachel, I'll go ahead and ask you to open up the call for questions.
Tim Laney: All right. Well, thank you, John. We've covered a lot of ground this morning. So, Rachel, I'll go ahead and ask you to open up the call for questions.
Speaker #4: Thank you. If you would like to ask a question, please signal by pressing star one on your telephone keypad. If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment.
Operator: Thank you. If you would like to ask a question, please signal by pressing star one on your telephone keypad. If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, please press star one to ask a question. Our first question comes from Jeff Rulis, with D.A. Davidson.
Operator: Thank you. If you would like to ask a question, please signal by pressing star one on your telephone keypad. If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, please press star one to ask a question. Our first question comes from Jeff Rulis, with D.A. Davidson.
Speaker #4: Again, please press star one to ask a question. And our first question comes from Jeff Rulas with D.A. Davidson.
Tim Laney: Good morning, Jeff.
Tim Laney: Good morning, Jeff.
Speaker #6: Thanks. Good Good morning, Jeff. morning. Nicole, that was a whirlwind of updates. If I could just rattle through a couple just to confirm, you said 10% loan growth in '26 off the combined 9.4 billion balance, a margin for the full year near 4%, earnings over a dollar in the fourth quarter and over $4 in '27.
Jeff Rulis: Thanks. Morning. Nicole, that was a whirlwind of updates. If I could just rattle through a couple, just to confirm. You said 10% loan growth in 2026 off the combined $9.4 billion balance. A margin for the full year, near 4%. Earnings over $1 in Q4 and over $4 in 2027. Is that right?
Jeff Rulis: Thanks. Morning. Nicole, that was a whirlwind of updates. If I could just rattle through a couple, just to confirm. You said 10% loan growth in 2026 off the combined $9.4 billion balance. A margin for the full year, near 4%. Earnings over $1 in Q4 and over $4 in 2027. Is that right?
Speaker #6: Is that
Speaker #6: right? That is
Nicole Van Denabeele: That is correct.
Nicole Van Denabeele: That is correct.
Speaker #6: Okay. correct. And on the two unified front, I think you said 2 to 4 million in revenue. This year, what was the cost again for '26?
Speaker #6: Okay, correct. And on the two unified front, I think you said $2 to $4 million in revenue this year. What was the cost again for '26?
Jeff Rulis: Okay. And on the 2UniFi front, I think you said $2 to 4 million in revenue this year. What was the cost again for 2026?
Jeff Rulis: Okay. And on the 2UniFi front, I think you said $2 to 4 million in revenue this year. What was the cost again for 2026?
Speaker #7: Yeah. So that's correct. 2 to 4 million, two unified revenue projection for 2026. And we will be holding two unified expense flat in 2026 consistent with 2025, which was 22 million.
Nicole Van Denabeele: Yes, so that's correct. $2 to 4 million of 2UniFi revenue projection for 2026, and we will be holding 2UniFi expense flat in 2026, consistent with 2025, which was $22 million.
Nicole Van Denabeele: Yes, so that's correct. $2 to 4 million of 2UniFi revenue projection for 2026, and we will be holding 2UniFi expense flat in 2026, consistent with 2025, which was $22 million.
Speaker #6: Got it. Thanks for that. And then it sounds like the partnership developing to sort of reduce those investment costs, I guess the leverage of the model into '27 is a little bit TBD, but I guess the focus is, as you scale it up, that's more of a break-even type climate in '27.
Jeff Rulis: Got it. Thanks for that. And then, you know, it sounds like the partnership developing to sort of reduce those investment costs. I guess, the leverage of the model into 2027 is a little bit TBD. But, I guess, the focus is, as you scale it up, that's more of a break-even type climate in 2027. And, just... I know that we're, all this is developing, but trying to get a sense for what the 2027 economics look like.
Jeff Rulis: Got it. Thanks for that. And then, you know, it sounds like the partnership developing to sort of reduce those investment costs. I guess, the leverage of the model into 2027 is a little bit TBD. But, I guess, the focus is, as you scale it up, that's more of a break-even type climate in 2027. And, just... I know that we're, all this is developing, but trying to get a sense for what the 2027 economics look like.
Speaker #6: I know that we're all of this is developing, but trying to get a sense for what the '27 economics look like.
Tim Laney: Look, I think what we should share with you is that right now we are incredibly focused on phase 1 product activation with clients, and driving revenue, and really testing the market with those services. Number 2, as I shared, we are very focused on working to establish a partnership that, frankly, could have the effect amongst other options, of moving this off the NBH financials altogether, where we would remain a meaningful investor as shareholders, but it would be treated in a very different fashion financially. But I'll come back to the first point, which is our focus today is on client activation and scaling this business, and we'll come back to you. You know, it, it's just too early to come back to you with any kind of definitive targets on 2027.
Speaker #5: Look, I think what we should share with you is that right now we are incredibly focused on phase one product activation with clients and driving revenue, and really testing the market with those services.
Tim Laney: Look, I think what we should share with you is that right now we are incredibly focused on phase 1 product activation with clients, and driving revenue, and really testing the market with those services. Number 2, as I shared, we are very focused on working to establish a partnership that, frankly, could have the effect amongst other options, of moving this off the NBH financials altogether, where we would remain a meaningful investor as shareholders, but it would be treated in a very different fashion financially. But I'll come back to the first point, which is our focus today is on client activation and scaling this business, and we'll come back to you. You know, it, it's just too early to come back to you with any kind of definitive targets on 2027.
Speaker #5: Number two, as I shared, we are very focused on working to establish a partnership that, frankly, could have the effect, amongst other options, of moving this off the NBH financials altogether, where we would remain a meaningful investor as shareholders, but it would be treated in a very different fashion financially.
Speaker #5: But I'll come back to the first point, which is our focus today is on client activation, and scaling this business, and we'll come back to you it's just too early to come back to you with any kind of definitive targets on
Speaker #5: '27. Yep.
Jeff Rulis: Yep. No, that's helpful, Tim. Just the range of options, including moving off the financials of the bank entirely. We'll stay tuned. Just to pivot on to the credit side, the three loans that made up the bulk of the net charge-offs. Could you kind of identify the sort of category and why that group, you know, any systemic? It sounds as if you expect credit metrics to further improve in 2026? Just trying to get a sense for what was charged off. Thanks.
Jeff Rulis: Yep. No, that's helpful, Tim. Just the range of options, including moving off the financials of the bank entirely. We'll stay tuned. Just to pivot on to the credit side, the three loans that made up the bulk of the net charge-offs. Could you kind of identify the sort of category and why that group, you know, any systemic? It sounds as if you expect credit metrics to further improve in 2026? Just trying to get a sense for what was charged off. Thanks.
Speaker #6: No, that's helpful, Tim. Just the range of options including moving the off the financials of the bank entirely. We'll stay tuned. Maybe the just to pivot onto the credit side, the three loans that made up the bulk of the net charge-offs.
Speaker #6: Could you kind of identify that sort of category and why that group any systemic, it sounds as if you expect credit metrics to further improve in '26, just trying to get a sense for what was charged off.
Speaker #6: Thanks.
Tim Laney: If you'll recall, at the beginning of 25, we literally were dealing with less than a handful of relationships that had emerged as problems. We really were in the belief that over the course of 25, they would work their way through the judicial process, and we would have them resolved, and that simply wasn't the case. The decision, we believe a prudent decision, was to address these as aggressively as we could in 25 and have a clean runway for 26. We're just not believers in letting problems like this linger, and the board and I felt like this would-
Speaker #5: If you'll
Tim Laney: If you'll recall, at the beginning of 25, we literally were dealing with less than a handful of relationships that had emerged as problems. We really were in the belief that over the course of 25, they would work their way through the judicial process, and we would have them resolved, and that simply wasn't the case. The decision, we believe a prudent decision, was to address these as aggressively as we could in 25 and have a clean runway for 26. We're just not believers in letting problems like this linger, and the board and I felt like this would-
Speaker #5: recall, at the beginning of '25, we literally were dealing with less than a handful of relationships that had emerged as problems. We really were in the belief that over the course of '25, they would work their way through the judicial process, and we would have them resolved.
Speaker #5: And that simply wasn't the case. The decision we believe a prudent decision was to address these as aggressively as we could in '25 and have a clean runway for '26.
Speaker #5: We're just not believers in letting problems like this linger and the board and I felt like this was the correct and prudent action to take, even though it obviously was painful to take here in the fourth quarter of last year but it feels good, very good to put it behind us.
John Steinmetz (National Bank Holdings Corporati: ... the correct and prudent action to take, even though it obviously was painful to take here in the fourth quarter of last year. But it feels good, very good to put it behind us.
... the correct and prudent action to take, even though it obviously was painful to take here in the fourth quarter of last year. But it feels good, very good to put it behind us.
Speaker #6: Appreciate it. Thank you.
Nicole Van Denabeele: Appreciate it. Thank you.
Jeff Rulis: Appreciate it. Thank you.
Speaker #4: Thank you. And we will take our next question from Kelly Mota with KBW.
Operator: Thank you. We will take our next question from Kelly Motta with KBW.
Operator: Thank you. We will take our next question from Kelly Motta with KBW.
Speaker #8: Hey, good morning. Thanks for the question. Maybe to kick it off with growth, I know we talked about 2025 being a year of working through some credits and impacted by some payoffs and refinancings, but it sounds like the outlook for '26 is really strong, in part with your Vista partnership that you just brought on.
Kelly Motta: Hey, good morning. Thanks for the question. Maybe, maybe to kick it off with growth, I know, you know, we, we talked about 2025 being, working through some credits and, impacted by some, some payoffs and refinancings. But, it sounds like the outlook for 2026 is really strong, in part with, your Vista partnership that you, you just brought on. As you, you look to I think it was 10% loan growth, can you speak to, the drivers of that growth, if that's, significantly Texas and other, other markets where you're seeing, opportunities, just given the acceleration from, you know, what we've seen the past several quarters? Thank you.
Kelly Motta: Hey, good morning. Thanks for the question. Maybe, maybe to kick it off with growth, I know, you know, we, we talked about 2025 being, working through some credits and, impacted by some, some payoffs and refinancings. But, it sounds like the outlook for 2026 is really strong, in part with, your Vista partnership that you, you just brought on. As you, you look to I think it was 10% loan growth, can you speak to, the drivers of that growth, if that's, significantly Texas and other, other markets where you're seeing, opportunities, just given the acceleration from, you know, what we've seen the past several quarters? Thank you.
Speaker #8: As you look to, I think it was 10% loan growth, can you speak to the drivers of that growth, if that's significantly Texas and other markets where you're seeing opportunities just given the acceleration from what we've seen the past several quarters?
Speaker #8: Thank you.
Speaker #5: Yeah. Hey, Kelly, this is Aldis. I'll kick off and then I'll have John chime in. But yeah, it's a combination of all the markets and certainly the continuation of the strong production we saw in the fourth quarter, as I mentioned, it was our second highest loan production quarter for NBH standalone basis.
Aldis Birkans: Yeah. Hey, Kelly, this is Aldis. I'll kick off, and then I'll have John chime in. But yeah, it's a combination of all the markets and certainly the continuation of the strong production we saw in the fourth quarter. As I mentioned, it was our second highest loan production quarter for NBH stand-alone basis. In our company's history, we did really well on originating commercial loans. If you'd like to see it, look at the CNI in the table; that group north of 10% annualized. So we do see a very good momentum going into this year. And certainly adding markets like Texas and the expertise and teammates that we are adding through this acquisition is great. And, John, maybe you can add on that front as well as touch on the resort markets.
Aldis Birkans: Yeah. Hey, Kelly, this is Aldis. I'll kick off, and then I'll have John chime in. But yeah, it's a combination of all the markets and certainly the continuation of the strong production we saw in the fourth quarter. As I mentioned, it was our second highest loan production quarter for NBH stand-alone basis. In our company's history, we did really well on originating commercial loans. If you'd like to see it, look at the CNI in the table; that group north of 10% annualized. So we do see a very good momentum going into this year. And certainly adding markets like Texas and the expertise and teammates that we are adding through this acquisition is great. And, John, maybe you can add on that front as well as touch on the resort markets.
Speaker #5: In our company's history, we did really well on originating commercial loans, if you like. Look at the CNI in the table. That group, north of 10% annualized.
Speaker #5: So we do see a very good momentum going into this year. And certainly adding markets like Texas and the expertise and teammates that we are adding through Vista acquisition is great.
Speaker #5: And John, maybe you can add on that front as well as touch on the resort markets.
Speaker #3: Sure. Thanks, Aldis. And yeah, Kelly, we're really excited about the future growth potential, not only in Texas but the resort markets. And all the markets, candidly.
John Steinmetz (National Bank Holdings Corporati: Sure. Thanks, Aldis. And yeah, Kelly, we're really excited about the future growth potential, not only in Texas, but the resort markets, and all the markets, candidly. I'm looking forward to getting to know the team members throughout all of the NBH markets. And we believe in Texas that this platform that was built at NBH provides us not only the balance sheet that we need to continue to grow with our valued clients, but support our exceptional bankers. And to Aldis's point, we also have always believed that NBH has an incredible opportunity in the resort markets. Resort markets that, again, were once seen as second homes, but are now becoming primary residences in places where people want to have their local bank.
John Steinmetz (National Bank Holdings Corporati: Sure. Thanks, Aldis. And yeah, Kelly, we're really excited about the future growth potential, not only in Texas, but the resort markets, and all the markets, candidly. I'm looking forward to getting to know the team members throughout all of the NBH markets. And we believe in Texas that this platform that was built at NBH provides us not only the balance sheet that we need to continue to grow with our valued clients, but support our exceptional bankers. And to Aldis's point, we also have always believed that NBH has an incredible opportunity in the resort markets. Resort markets that, again, were once seen as second homes, but are now becoming primary residences in places where people want to have their local bank.
Speaker #3: I'm looking forward to getting to know the team members throughout all of the NBH markets. And we believe in Texas that this platform that was built at NBH provides us not only the balance sheet that we need to continue to grow with our valued clients, but support our exceptional bankers.
Speaker #3: And to Aldis' point, we also have always believed that NBH has an incredible opportunity in the resort markets. Resort markets that, again, were once seen as second homes but are now becoming primary residents in places where people want to have their local bank.
Speaker #3: And I hope at this time next quarter you'll see some performance-driven metrics and increased shareholder value around that. But the platform that we have at NBH as a team is going to provide not only allow us to support the continued 20-plus percent Gager on deposits and loan growth that we've historically had, but it's also going to allow us to overcome a lot of the lack of fee income, which Vista Bank has historically struggled
Speaker #3: And I hope at this time next quarter you'll see some performance-driven metrics and increased shareholder value around that. But the platform that we have at NBH as a team is going to not only provide us support for the continued 20-plus percent CAGR on deposits and loan growth that we've historically had, but it's also going to allow us to overcome a lot of the lack of fee income, which Vista Bank has historically struggled with.
John Steinmetz (National Bank Holdings Corporati: And I hope at this time next quarter, you'll see some performance driven metrics and increased shareholder value around that. But the platform that we have at NBH as a team is gonna provide not only, you know, allow us to support the continued 20+% CAGR on deposits and loan growth that we've historically had, but it's also gonna allow us to overcome a lot of the lack of fee income which Vista Bank has historically struggled with.
And I hope at this time next quarter, you'll see some performance driven metrics and increased shareholder value around that. But the platform that we have at NBH as a team is gonna provide not only, you know, allow us to support the continued 20+% CAGR on deposits and loan growth that we've historically had, but it's also gonna allow us to overcome a lot of the lack of fee income which Vista Bank has historically struggled with.
Speaker #4: Got it. That's really helpful. Maybe I'll bounce to a question on the margin. It was down this quarter a bit more than I had expected.
Kelly Motta: Got it. That's really helpful. Maybe bouncing to a question on the margin. It was down this quarter a bit more than I had expected. With the loan yields, were there any interest reversals given what you had with credit? And you know, I appreciate the guide in the mid-3.90s too, ex rate cuts, but just if you could refresh us on clearly, I think there was some initial asset sensitivity, so how we should be thinking through that? Thanks.
Kelly Motta: Got it. That's really helpful. Maybe bouncing to a question on the margin. It was down this quarter a bit more than I had expected. With the loan yields, were there any interest reversals given what you had with credit? And you know, I appreciate the guide in the mid-3.90s too, ex rate cuts, but just if you could refresh us on clearly, I think there was some initial asset sensitivity, so how we should be thinking through that? Thanks.
Speaker #4: With the loan yields, were there any interest reversals given what you had with credit and I appreciate the guide in the mid-390s too, is X rate cuts, but just if you could refresh us on clearly, I think there's some initial asset sensitivity, so how we should be thinking through that.
Speaker #1: Yeah.
Nicole Van Denabeele: Yeah. Kelly, good morning. This is Nicole. Yeah, I'll just reiterate. So our December margin did come in at a strong 3.97%. We have managed, in our view, very well through 75 basis points of rate cuts in 2025. We experienced, or we drove nine basis points of margin expansion, even with those rate cuts this year. There wasn't any interest reversals in the fourth quarter. The loans that we worked through were already on non-accrual. But I will just to reiterate, we've done a nice job with our deposit pricing. For prior rate cuts, we cut our deposit rates ahead of the Fed.
Nicole Van Denabeele: Yeah. Kelly, good morning. This is Nicole. Yeah, I'll just reiterate. So our December margin did come in at a strong 3.97%. We have managed, in our view, very well through 75 basis points of rate cuts in 2025. We experienced, or we drove nine basis points of margin expansion, even with those rate cuts this year. There wasn't any interest reversals in the fourth quarter. The loans that we worked through were already on non-accrual. But I will just to reiterate, we've done a nice job with our deposit pricing. For prior rate cuts, we cut our deposit rates ahead of the Fed.
Speaker #1: Kelly, good, thanks. Morning. This is Nicole. Yeah, I'll just reiterate. So our December margin did come in at a strong 3.97%. We have managed, in our view, very well through 75 basis points of rate cuts in 2025.
Speaker #1: We experienced or we drove 9 basis points of margin expansion even with those rate cuts this year. There wasn't any interest reversals in the fourth quarter.
Speaker #1: The loans that we worked through were already on non-accrual. But I will just reiterate we've done a nice job with our deposit pricing for prior rate cuts.
Speaker #1: We cut deposit price we cut our deposit rates ahead of the Fed this time. We held and we waited until we knew exactly what the Fed was going to do.
Nicole Van Denabeele: This time, we held, and we waited until we knew exactly what the Fed was gonna do, and so that did cause that lag and drag effect, but we have overcome that, and finished the year with a strong margin of 3.97%.
This time, we held, and we waited until we knew exactly what the Fed was gonna do, and so that did cause that lag and drag effect, but we have overcome that, and finished the year with a strong margin of 3.97%.
Speaker #1: And so that did cause that lag and drag effect, but we have overcome that and finished the year with a strong margin of 3.97%.
Speaker #4: Great. Thank you. Last one, if I could slip in just one more. On the two unified guide, the expense guide, the flat at 22 million, I just wanted to confirm because you alluded to a potential partnership that could change the economics here, that that didn't bake in any potential impacts of maybe offloading some of those expenses.
Kelly Motta: Great. Thank you. Last one, if I could slip in just one more. On the 2UniFi guidance, the expense guidance, that's flat at $22 million. I just wanted to confirm, because you alluded to a potential partnership that could change the economics here, that that didn't bake in any, you know, potential impacts of maybe offloading some of those expenses, one. And then two, with it flat, you know, I imagine getting—increasing the user base is an important part of driving those revenues higher. And so I'm surprised it's flat. So I guess if you could kind of speak to how you guys are thinking about that line item, given that we're not really seeing a change from last year?
Kelly Motta: Great. Thank you. Last one, if I could slip in just one more. On the 2UniFi guidance, the expense guidance, that's flat at $22 million. I just wanted to confirm, because you alluded to a potential partnership that could change the economics here, that that didn't bake in any, you know, potential impacts of maybe offloading some of those expenses, one. And then two, with it flat, you know, I imagine getting—increasing the user base is an important part of driving those revenues higher. And so I'm surprised it's flat. So I guess if you could kind of speak to how you guys are thinking about that line item, given that we're not really seeing a change from last year?
Speaker #4: One, and then two, with it flat, I imagine getting increasing the user base is an important part of driving those revenues higher. And so I'm surprised it's flat.
Speaker #4: So I guess if you could kind of speak to how you guys are thinking about that line item given that we're not really seeing a change from last year.
Speaker #1: Yeah, I appreciate you asking that question. I think it's important to note we see 2026 as a turning point for Two Unified. And as I shared, we are seeing operating leverage from 2025, or from Two Unified, in 2026.
Nicole Van Denabeele: ... Yeah, I appreciate you asking that question. It's—I think it's important to note we see 2026 as a turning point for 2UniFi. And as I shared, we are seeing operating leverage from 2025, or from 2UniFi in 2026. So the revenue guide is an increase from last year. So the $2 to 4 million revenue guide, positive impact from 2025, and then holding expenses flat. It's actually very significant that we're holding expenses flat because we will have a full year of capitalized asset depreciation in 2026. And so that expense flat includes that uptick in depreciation, which is half of the 2026 expenses.
Nicole Van Denabeele: ... Yeah, I appreciate you asking that question. It's—I think it's important to note we see 2026 as a turning point for 2UniFi. And as I shared, we are seeing operating leverage from 2025, or from 2UniFi in 2026. So the revenue guide is an increase from last year. So the $2 to 4 million revenue guide, positive impact from 2025, and then holding expenses flat. It's actually very significant that we're holding expenses flat because we will have a full year of capitalized asset depreciation in 2026. And so that expense flat includes that uptick in depreciation, which is half of the 2026 expenses.
Speaker #1: So the revenue guide is an increase from last year. So the 2 to 4 million revenue guide positive impact from 2025. And then holding expenses flat, it's actually very significant that we're holding expenses flat because we will have a full year of capitalized asset depreciation in 2026.
Speaker #1: And so, that expense flat includes that uptick in depreciation, which is half of the 2026 expenses. And then, to your point on the partnership—so, no potential; the partnership, really, from a financial perspective, is all upside, and none of that has been included in our guidance for—
Nicole Van Denabeele: And then to your, to your point on the partnership, so the partnership, really, from a financial perspective, is all upside, and none of that has been included in our guidance for 2026.
And then to your, to your point on the partnership, so the partnership, really, from a financial perspective, is all upside, and none of that has been included in our guidance for 2026.
Speaker #1: 2026. Thanks for all that.
Kelly Motta: Thanks for all that. I'll step back. Appreciate you guys taking the questions.
Kelly Motta: Thanks for all that. I'll step back. Appreciate you guys taking the questions.
Speaker #4: I'll step back. Appreciate you guys taking the
Speaker #4: questions. Thank you,
Tim Laney: Thank you, Kelly.
Tim Laney: Thank you, Kelly.
Speaker #4: Thank you. And we, Kelly, will take our next question from Andrew Terrell with...
Operator: Thank you. We will take our next question from Andrew Terrell with Stephens.
Operator: Thank you. We will take our next question from Andrew Terrell with Stephens.
Speaker #4: Stevens. Hey, good
Speaker #4: Stevens. Hey, good
Andrew Terrell: Hey, good morning.
Andrew Terrell: Hey, good morning.
Speaker #3: Hey, good morning. morning.
Tim Laney: Hey, good morning.
Tim Laney: Hey, good morning.
Andrew Terrell: First one, just to clarify, Nicole, on the margin, was the 3.97 spot at the end of the year or 3.97 for the full month of December?
Speaker #5: First, just to clarify, Nicole, on the margin, was the 3.97, was that spot at the end of the year or 3.97 for the full month of December?
Andrew Terrell: First one, just to clarify, Nicole, on the margin, was the 3.97 spot at the end of the year or 3.97 for the full month of December?
Speaker #1: 3.97 was for the full month of December.
Nicole Van Denabeele: $397 was for the full month of December.
Nicole Van Denabeele: $397 was for the full month of December.
Speaker #5: Okay. And then do you have the it sounds like there was a lag here where assets repriced quite a bit quicker than deposits. Do you have where deposits either spot or interest-bearing or, I mean, either total or interest-bearing were either in the month of December or on a spot basis at the end of the
Andrew Terrell: Okay. And then do you have the... It sounds like there was a lag here where assets repriced quite a bit quicker than deposits. Do you have where deposits, either spot or interest bearing, I mean, either total or interest bearing, were either in the month of December or on a spot basis at the end of the quarter?
Andrew Terrell: Okay. And then do you have the... It sounds like there was a lag here where assets repriced quite a bit quicker than deposits. Do you have where deposits, either spot or interest bearing, I mean, either total or interest bearing, were either in the month of December or on a spot basis at the end of the quarter?
Speaker #5: quarter? Yeah, this is Aldis.
Aldis Birkans: Yeah, this is Aldis. It was 182, is the spot deposit cost at the end of December for NBH. But I recall now, starting in Q1 or starting now, obviously, we're incorporating all of the Vista's deposit base as well, so it will change in Q2. But to, I think what you're getting at is our spot margin is around 4% if you incorporate all of the benefit from deposit bleed through in December.
Aldis Birkans: Yeah, this is Aldis. It was 182, is the spot deposit cost at the end of December for NBH. But I recall now, starting in Q1 or starting now, obviously, we're incorporating all of the Vista's deposit base as well, so it will change in Q2. But to, I think what you're getting at is our spot margin is around 4% if you incorporate all of the benefit from deposit bleed through in December.
Speaker #3: It was 182. It was a spot deposit cost at the end of December for NBH. Better to call now starting in Q1 or starting now.
Speaker #3: Obviously, we are incorporating all of the Vista's deposit base as well. So it will change in Q2. But I think where you're getting at is our spot margin is around 4% if you incorporate all of the benefit from deposit bleed-through in December.
Speaker #5: Yep. Yep. Got it. Okay. If I could ask just around the two unified, specifically the partnership, if I go back to October when we talked about on the call, it sounded like you were maybe pretty close on announcing something from a partnership standpoint.
Andrew Terrell: Yep. Yep, got it. Okay. If I could ask just around the 2UniFi, specifically the partnership. If I go back to October, Tim, when we talked about on the call, it sounded like you were maybe pretty close on announcing something from a partnership standpoint. It sounds like now, you know, that's still likely, but maybe delayed a bit. I guess I'm curious what's kind of causing a delay here, or if there is a delay in your mind?
Andrew Terrell: Yep. Yep, got it. Okay. If I could ask just around the 2UniFi, specifically the partnership. If I go back to October, Tim, when we talked about on the call, it sounded like you were maybe pretty close on announcing something from a partnership standpoint. It sounds like now, you know, that's still likely, but maybe delayed a bit. I guess I'm curious what's kind of causing a delay here, or if there is a delay in your mind?
Speaker #5: It sounds like now it's delayed a bit. And I guess I'm curious what's kind of—if that's still likely, but maybe causing a delay here, or if there is a delay in your—
Speaker #5: mind. I
Tim Laney: You know, I may have made a mistake in sharing as much as I did at that point, candidly. It perhaps even reflected too much optimism, and I could kick myself for that. I believe we were further along in consummating a partnership there. But frankly, you know, when you're involving two parties, you can have different needs, expectations on either side that may not come together in the time frame that you expected. So what you need to hear from me today is that we are intensely focused on bringing the right partnership together and moving Two Unify ahead. And frankly, you know, we are proud to be targeting a $4 run rate in our earnings in 2027.
Tim Laney: You know, I may have made a mistake in sharing as much as I did at that point, candidly. It perhaps even reflected too much optimism, and I could kick myself for that. I believe we were further along in consummating a partnership there. But frankly, you know, when you're involving two parties, you can have different needs, expectations on either side that may not come together in the time frame that you expected. So what you need to hear from me today is that we are intensely focused on bringing the right partnership together and moving Two Unify ahead. And frankly, you know, we are proud to be targeting a $4 run rate in our earnings in 2027.
Speaker #3: may have made a mistake in sharing as much as I did at that point, candidly. It perhaps even reflected too much optimism, and I could kick myself for that.
Speaker #3: I believe we were further along in consummating a partnership there. But frankly, when you’re involving two parties, you can have different needs and expectations on either side that may not come together in the timeframe that you expected.
Speaker #3: So what you need to hear from me today is that we are intensely focused on bringing the right partnership together and moving two unified ahead.
Speaker #3: And frankly, we are proud to be targeting a $4 run rate in our earnings in '27. But imagine what that looks like if we're pulling those expenses of two unified in all or in part off of our income statement.
Tim Laney: But imagine what that looks like if we're pulling those expenses of Two Unify, in all or in part, off of our income statement. So we're highly motivated to, to see something happen there.
But imagine what that looks like if we're pulling those expenses of Two Unify, in all or in part, off of our income statement. So we're highly motivated to, to see something happen there.
Speaker #3: So we're highly motivated to see something happen there.
Speaker #5: Yep. Got it. Thank you. And last for me, was there any I appreciate the two unified guide, but was there any revenue in the fourth quarter realized?
Andrew Terrell: Yep, got it. Thank you. And last for me, was there any? I appreciate that 2UniFi guide, but was there any revenue in the fourth quarter realized? And then just on the buyback that you guys announced, maybe, Tim, if you could speak to kind of the appetite there. Thanks.
Andrew Terrell: Yep, got it. Thank you. And last for me, was there any? I appreciate that 2UniFi guide, but was there any revenue in the fourth quarter realized? And then just on the buyback that you guys announced, maybe, Tim, if you could speak to kind of the appetite there. Thanks.
Speaker #5: And then just on the buyback that you guys announced, maybe to if you could speak to kind of the appetite
Speaker #5: there. Thanks. Yeah.
Speaker #1: I can touch on the two unified revenue question. So we did have some revenue related to two unified in the fourth quarter, but it wasn't meaningful.
Nicole Van Denabeele: Yeah, I can, I can touch on the 2UniFi revenue question. So we, we did have some revenue related to 2UniFi in Q4, but it wasn't meaningful. And then, the second part was the appetite for share buyback.
Nicole Van Denabeele: Yeah, I can, I can touch on the 2UniFi revenue question. So we, we did have some revenue related to 2UniFi in Q4, but it wasn't meaningful. And then, the second part was the appetite for share buyback.
Speaker #1: then the second part was the And appetite for share buybacks.
Tim Laney: We have a strong interest in share buybacks.
Speaker #3: We have a strong interest in share.
Tim Laney: We have a strong interest in share buybacks.
Speaker #3: buybacks. I Fair enough. believe you know we literally just announced $100 million buyback authorization, and we have a, frankly, we would consider it a priority at this
Andrew Terrell: Fair enough.
Andrew Terrell: Fair enough.
Tim Laney: I believe you know, we literally just announced $100 million buyback authorization, and frankly, we would consider it a priority at this point.
Tim Laney: I believe you know, we literally just announced $100 million buyback authorization, and frankly, we would consider it a priority at this point.
Speaker #3: point. Great.
Andrew Terrell: Great. Thanks for taking the questions.
Andrew Terrell: Great. Thanks for taking the questions.
Speaker #5: Thanks for taking the questions.
Speaker #4: Thank you. And we will take our next question from Brett Rabbiton with Hefty
Operator: Thank you. We will take our next question from Brett Rabatin with Hovde Group.
Operator: Thank you. We will take our next question from Brett Rabatin with Hovde Group.
Speaker #4: Group. Hey, good morning,
Brett Rabatin: Hey, good morning, everybody.
Brett Rabatin: Hey, good morning, everybody.
Speaker #6: everybody.
Speaker #3: Hey, good morning.
Tim Laney: Hey, good morning.
Tim Laney: Hey, good morning.
Brett Rabatin: Morning. I joined a little bit late, Tim, but wanted just to go back to, you know, you guys have had really strong loan originations, particularly here lately, but, but then obviously, the net growth has been limited due to payoffs. Can you talk maybe a little bit about, you know, what you've experienced or what you experienced during Q4, you know, in terms of payoff activity and how that played out? And then just, you know, your confidence for 2026, if I, if I heard correct, 10% loan growth, you know, is there a net and gross assumption there or any, any thoughts on, you know, confidence on payoffs diminishing relative to what you've experienced the past few quarters in particular?
Speaker #6: What I joined a little bit late, Tim, but wanted just to go back to you guys have had really strong loan originations, particularly here lately.
Brett Rabatin: Morning. I joined a little bit late, Tim, but wanted just to go back to, you know, you guys have had really strong loan originations, particularly here lately, but, but then obviously, the net growth has been limited due to payoffs. Can you talk maybe a little bit about, you know, what you've experienced or what you experienced during Q4, you know, in terms of payoff activity and how that played out? And then just, you know, your confidence for 2026, if I, if I heard correct, 10% loan growth, you know, is there a net and gross assumption there or any, any thoughts on, you know, confidence on payoffs diminishing relative to what you've experienced the past few quarters in particular?
Speaker #6: But obviously, the net growth has been limited due to payoffs. Can you talk maybe a little bit about what you’ve experienced, or what you experienced during Q4 in terms of payoff activity, and how that played out?
Speaker #6: And then just your confidence for '26, if I heard correct, 10% loan growth. Is there a net and gross assumption there or any thoughts on confidence on payoffs diminishing relative to what you experienced the past few quarters in
Speaker #6: particular? Aldis did touch
Tim Laney: Aldis did touch on, you know, what we were seeing with insurance competition, the private debt market. But let's be candid, all banks or most banks would be facing that competition. I'll tell you, there were just a number of situations where the kind of structures that were being put together and the pricing related to those deals just simply did not fit within our risk management framework. And so we're more than willing to let that business move along. But I think the broader context is the full year where we entered 2025 with, frankly, a risk-off mindset, having concerns about tariffs, having concerns about where the economy would land.
Tim Laney: Aldis did touch on, you know, what we were seeing with insurance competition, the private debt market. But let's be candid, all banks or most banks would be facing that competition. I'll tell you, there were just a number of situations where the kind of structures that were being put together and the pricing related to those deals just simply did not fit within our risk management framework. And so we're more than willing to let that business move along. But I think the broader context is the full year where we entered 2025 with, frankly, a risk-off mindset, having concerns about tariffs, having concerns about where the economy would land.
Speaker #3: on what we were seeing with insurance competition, the private debt market. But let's be candid. All banks or most banks would be facing that competition.
Speaker #3: I'll tell you, there were just a number of situations where the kind of structures that were being put together in the pricing related to those deals just simply did not fit within our risk management framework.
Speaker #3: And so we're more than willing to let that business move along. But I think the broader context is the full year. Where we entered 2025 with, frankly, a risk-off mindset, having concerns about tariffs, having concerns about where the economy would land, and I would tell you that that risk-off position that we took was somewhat pervasive throughout the year to a point where when it was time to really turn things back on, I'm proud of the team's production but I would tell you it was being done in a very, very conservative atmosphere.
Tim Laney: I would tell you that that risk-off position that we took was somewhat pervasive throughout the year to a point where when it was time to really turn things back on, I'm proud of the team's production, but I would tell you it was being done in a very, very conservative atmosphere. We come into 2026 really with, you know, the combined forces of former Vista and NBH. And as we lay out these growth plans that we shared for you, Aldis and John have expressed nothing but very high confidence that we will meet, if not beat them. So with that, I'll open it up first, maybe to you, Aldis, for more detail on Q4. But then in terms of growth here in 2026, John, Aldis, feel free to jump in on that as well.
I would tell you that that risk-off position that we took was somewhat pervasive throughout the year to a point where when it was time to really turn things back on, I'm proud of the team's production, but I would tell you it was being done in a very, very conservative atmosphere. We come into 2026 really with, you know, the combined forces of former Vista and NBH. And as we lay out these growth plans that we shared for you, Aldis and John have expressed nothing but very high confidence that we will meet, if not beat them. So with that, I'll open it up first, maybe to you, Aldis, for more detail on Q4. But then in terms of growth here in 2026, John, Aldis, feel free to jump in on that as well.
Speaker #3: We come into '26 really with the combined forces of former Vista and NBH and as we lay out these growth plans that we shared for you, Aldis and John have expressed nothing but very high confidence that we will meet, if not beat them.
Speaker #3: So with that, I'll open it up. First, maybe you, Aldis, for more detail on the fourth quarter, but then in terms of growth here in '26, John, Aldis, feel free to jump in on that as well.
Speaker #2: Yeah. Brett, what I would add is looking ahead in 2026, one thing that is a bit different in addition to what Tim was mentioning in terms of, again, transportation or trucking is a segment we definitely exited, and that was a headwind.
Aldis Birkans: Yeah, Brett, what I would add is looking ahead in 2026, one thing that is a bit different, in addition to what Tim was mentioning in terms of, again, like transportation or trucking is a segment we definitely exited, and that was a headwind. We are where we want to be, so that's not going to be a headwind in 2026. The other thing I'll say is, and again, this is on NBHC's legacy book side, but we have approximately a quarter of a billion to almost $300 million of less scheduled maturities this year than it was last year. So that's less of a, call it, headwind or churn that we have to overcome to, again, grow even with the same production results.
Aldis Birkans: Yeah, Brett, what I would add is looking ahead in 2026, one thing that is a bit different, in addition to what Tim was mentioning in terms of, again, like transportation or trucking is a segment we definitely exited, and that was a headwind. We are where we want to be, so that's not going to be a headwind in 2026. The other thing I'll say is, and again, this is on NBHC's legacy book side, but we have approximately a quarter of a billion to almost $300 million of less scheduled maturities this year than it was last year. So that's less of a, call it, headwind or churn that we have to overcome to, again, grow even with the same production results.
Speaker #2: We are where we want to be, so that's not going to be a headwind in 2026. The other thing I'll say is, and again, this is on NBH's legacy book side, but we have approximately a quarter of a billion to almost $300 million of less scheduled maturities this year than it was last year.
Speaker #2: So, that's less of a, call it, headwind return that we have to overcome to, again, grow, even with the same production results. So, John, anything that you'd add from legacy Vista side?
Aldis Birkans: So, John, anything that you'd add on from legacy Vista side?
Aldis Birkans: So, John, anything that you'd add on from legacy Vista side?
Speaker #3: Sure. Well, Brett, thanks for the question. And let me say, I'm optimistic and very excited about '26. We have consistently put up a 23% CAGR in loan growth without the balance sheet that NBH provides us.
John Steinmetz (National Bank Holdings Corporati: Sure. Well, Brett, thanks for the question, and let me say, I'm optimistic and very excited about 2026. You know, we have consistently put up a 23 CAGR in loan growth without the balance sheet that NBH provides us, and so we think that this was the perfect partnership. We see tremendous opportunities in these resort markets. But I am very confident and have always believed that the reason people first matters is because the best clients follow the best bankers. And we are committed to continuing to not only augment and support our exceptional team members at Vista and the entire NBH family, but also recruit and retain through the disruption that we see not only today, but throughout Texas. This was a merger of two incredible teams, and I'm incredibly optimistic and expect to win.
John Steinmetz (National Bank Holdings Corporati: Sure. Well, Brett, thanks for the question, and let me say, I'm optimistic and very excited about 2026. You know, we have consistently put up a 23 CAGR in loan growth without the balance sheet that NBH provides us, and so we think that this was the perfect partnership. We see tremendous opportunities in these resort markets. But I am very confident and have always believed that the reason people first matters is because the best clients follow the best bankers. And we are committed to continuing to not only augment and support our exceptional team members at Vista and the entire NBH family, but also recruit and retain through the disruption that we see not only today, but throughout Texas. This was a merger of two incredible teams, and I'm incredibly optimistic and expect to win.
Speaker #3: And so we think that this was the perfect partnership. We see tremendous opportunities in these resort markets. But I am very confident and have always believed that the reason people first matters is because the best clients follow the best bankers.
Speaker #3: And we are committed to continuing to not only augment and support our exceptional team members at Vista and the entire NBH family, but also recruit and retain through the disruption that we see not only today but throughout Texas.
Speaker #3: This was a merger of an two incredible teams, and I am incredibly optimistic and expect a win. And with respect to a question that was asked earlier, I believe by Jeff with DA Davidson, I want you all to know that we take great pride in our credit quality.
John Steinmetz (National Bank Holdings Corporati: With respect to a question that was asked earlier, I believe, by Jeff with D.A. Davidson, I want you all to know that we take great pride in our credit quality. And, I hope our credit team that is listening today at Vista, Legacy Vista. I'm still getting used to this. They know how much pride we take in pricing with credit quality second to none, and I have an extraordinary amount of confidence in Rick, Danny, and the credit team at NBH.
With respect to a question that was asked earlier, I believe, by Jeff with D.A. Davidson, I want you all to know that we take great pride in our credit quality. And, I hope our credit team that is listening today at Vista, Legacy Vista. I'm still getting used to this. They know how much pride we take in pricing with credit quality second to none, and I have an extraordinary amount of confidence in Rick, Danny, and the credit team at NBH.
Speaker #3: And for, I hope, our credit team that is listening today at Vista, legacy Vista, I'm still getting used to this, they know how much pride we take in pricing.
Speaker #3: With credit quality second to none, and I have an extraordinary amount of confidence in Rick, Danny, and the credit team at NBH. We did our reverse diligence and examined NBH's, because I assure you they did theirs on us.
John Steinmetz (National Bank Holdings Corporati: We did our reverse diligence and examined NBHC, because I assure you they did theirs on us, much like a proctology exam, and I am very proud to be partnering with this excellent credit quality-minded organization, because I don't think they kick the can down the road, and I'm fired up about 26.
We did our reverse diligence and examined NBHC, because I assure you they did theirs on us, much like a proctology exam, and I am very proud to be partnering with this excellent credit quality-minded organization, because I don't think they kick the can down the road, and I'm fired up about 26.
Speaker #3: Much like a proctology exam. And I am very proud to be partnering with this excellent credit quality-minded organization. Because I don't think they kick the can down the road, and I'm fired up about
Speaker #3: '26. That's all really
Brett Rabatin: That's all, that's all really helpful. I'm sorry?
Brett Rabatin: That's all, that's all really helpful. I'm sorry?
Speaker #6: helpful. I'm sorry.
Speaker #3: Oh, I was just saying as a shareholder and team member.
John Steinmetz (National Bank Holdings Corporati: I was just saying as a shareholder and team member.
John Steinmetz (National Bank Holdings Corporati: I was just saying as a shareholder and team member.
Speaker #6: Yeah. Okay. That's all really helpful. And I think most investors are going to give you guys credit for the credit situations being truly one-off.
Brett Rabatin: Yeah. Okay. That's all really helpful, and I think most investors are going to give you guys credit for, you know, the credit situations being truly one-off, so I don't think anybody's concerned about that. The other question I wanted to ask you, John, was just, you know, I think you're kind of known as a recruiter, and, you know, you got this deal with NBH, but there's been significant disruption in a lot of the markets of the core operating pro forma company. Just wanted to hear, you know, if you had offers out or if there was a hiring effort, pro forma, or if it's too early and you're just still trying to combine everything before you maybe go too much on offense with market share opportunities related to disruption.
Brett Rabatin: Yeah. Okay. That's all really helpful, and I think most investors are going to give you guys credit for, you know, the credit situations being truly one-off, so I don't think anybody's concerned about that. The other question I wanted to ask you, John, was just, you know, I think you're kind of known as a recruiter, and, you know, you got this deal with NBH, but there's been significant disruption in a lot of the markets of the core operating pro forma company. Just wanted to hear, you know, if you had offers out or if there was a hiring effort, pro forma, or if it's too early and you're just still trying to combine everything before you maybe go too much on offense with market share opportunities related to disruption.
Speaker #6: So I don't think anybody's concerned about that. The other question I wanted to ask you, John, was just I think you're kind of known as a recruiter and you've got this deal with NBH.
Speaker #6: But there's been significant disruption in a lot of the markets of the core operating pro forma company. Just wanted to hear if you had offers out or if there was a hiring effort pro forma or if it's too early and you're just still trying to combine everything before you maybe go too much on offense with market share opportunities related to disruption.
Brett Rabatin: Just, just any thoughts on how you see that playing out?
Speaker #6: And just any thoughts on how you see that?
Just, just any thoughts on how you see that playing out?
Speaker #6: playing out? Man, Brett,
John Steinmetz (National Bank Holdings Corporati: ... And Brett, I appreciate that question, and I'll tell you, this is my first public earnings call, and Tim told me not to make promises I can't keep. But I'll tell you this: we are actively recruiting, but I'll tell you, we are actively retaining. Like I said, most of our team members have been together for 20 years, and I take so much joy in knowing that we have the best bankers providing these. The opportunities and the inbound calls that we're receiving, not from recruiters, but from bankers at the organizations in Texas and beyond, to be a part of a culture that puts their people first, is something like I've never seen.
John Steinmetz (National Bank Holdings Corporati: ... And Brett, I appreciate that question, and I'll tell you, this is my first public earnings call, and Tim told me not to make promises I can't keep. But I'll tell you this: we are actively recruiting, but I'll tell you, we are actively retaining. Like I said, most of our team members have been together for 20 years, and I take so much joy in knowing that we have the best bankers providing these. The opportunities and the inbound calls that we're receiving, not from recruiters, but from bankers at the organizations in Texas and beyond, to be a part of a culture that puts their people first, is something like I've never seen.
Speaker #3: I appreciate that question. And I'll tell you, this is my first public earnings call, and Tim told me not to make promises I can't keep.
Speaker #3: But I'll tell you this. We are actively recruiting. But I'll tell you, we are actively retaining. Like I said, most of our team members have been together for 20 years, and I take so much joy in knowing that we have the best bankers providing these.
Speaker #3: The opportunities and the inbound calls that we're receiving—not from recruiters, but from bankers at the organizations in Texas and beyond—to be a part of a culture that puts their people first is something like I've never seen.
Speaker #3: And I'm excited for my friends in Texas that announced the deal today, but I can assure you, I am recruiting. And I think we all should be in this incredibly crowded industry where we all eat out of each other's dog bowl.
John Steinmetz (National Bank Holdings Corporati: I'm excited for my friends in Texas that announced the deal today, but I can assure you, I am recruiting, and I think we all should be in this incredibly crowded industry, where we all eat out of each other's dog bowl. So, I think that 26 could be a really good year, if we're willing to dig in. And, I'm excited about digging in with the team that we've had in the past, and more importantly, getting out and getting to know the NBH team that I have had a deep level of respect. This merger took place over 5 years of getting to know Tim, Aldis, and the entire NBH team.
I'm excited for my friends in Texas that announced the deal today, but I can assure you, I am recruiting, and I think we all should be in this incredibly crowded industry, where we all eat out of each other's dog bowl. So, I think that 26 could be a really good year, if we're willing to dig in. And, I'm excited about digging in with the team that we've had in the past, and more importantly, getting out and getting to know the NBH team that I have had a deep level of respect. This merger took place over 5 years of getting to know Tim, Aldis, and the entire NBH team.
Speaker #3: '26 could be a really good year, if we're willing to dig in, and I'm excited about digging in with the team that we've had in the past.
Speaker #3: And more importantly, getting out and getting to know the NBH team that I have had a deep level of respect for. This merger took place over five years.
Speaker #3: Of getting to know Tim, Aldis, and the entire NBH team. And if you would, Brett, just allow me to thank the team at Vista for their patience as we explored various opportunities.
John Steinmetz (National Bank Holdings Corporati: And if you would, Brett, just allow me to thank the team at Vista for their patience as we explore various opportunities. But we think this is a perfect partnership because of the way that they manage credit, much like we do.
And if you would, Brett, just allow me to thank the team at Vista for their patience as we explore various opportunities. But we think this is a perfect partnership because of the way that they manage credit, much like we do.
Speaker #3: But we think this is a perfect partnership because of the way that they manage credit, much like we do.
Speaker #6: Okay. Great. That's great color, John. Thanks.
Speaker #1: Thank you. I am showing we have no further questions at this time. I will now turn the call back to Mr. Laney for his closing remarks.
Operator: Thank you. I am showing we have no further questions at this time. I will now turn the call back to Mr. Laney for his closing remarks.
Operator: Thank you. I am showing we have no further questions at this time. I will now turn the call back to Mr. Laney for his closing remarks.
Speaker #3: Well, I'll just simply say thank you for your time today. And if you have any follow-up questions, do not hesitate to reach out directly.
Tim Laney: Well, I'll just simply say thank you for your time today, and if you have any follow-up questions, do not hesitate to reach out directly. Have a good day.
Tim Laney: Well, I'll just simply say thank you for your time today, and if you have any follow-up questions, do not hesitate to reach out directly. Have a good day.
Speaker #3: Have a good day.
Speaker #1: And this concludes today's conference call. If you would like to listen to the telephone replay of this call, it will be available in approximately 24 hours.
Operator: This concludes today's conference call. If you would like to listen to the telephone replay of this call, it will be available in approximately 24 hours, and the link will be on the company's website, on the Investor Relations page. Thank you very much, and have a great day. You may now disconnect.
Operator: This concludes today's conference call. If you would like to listen to the telephone replay of this call, it will be available in approximately 24 hours, and the link will be on the company's website, on the Investor Relations page. Thank you very much, and have a great day. You may now disconnect.
Speaker #1: And the link will be on the company's website on the investor relations page. Thank you very much, and have a great day. You may now disconnect.
