National Bank Holdings (NYSE:NBHC) Misses Q4 CY2025 Sales Expectations

Regional banking company National Bank Holdings (NYSE:NBHC) fell short of the markets revenue expectations in Q4 CY2025, with sales falling 5.5% year on year to $100.6 million. Its non-GAAP profit of $0.60 per share was 26.6% below analysts’ consensus estimates.

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Company Overview

Operating under familiar local brands like Community Banks of Colorado, Bank Midwest, and Bank of Jackson Hole, National Bank Holdings (NYSE:NBHC) operates regional banks across Colorado, Kansas, Missouri, Wyoming, Texas, and other western states, offering commercial, business, and consumer banking services.

Sales Growth

Net interest income and and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities. Over the last five years, National Bank Holdings grew its revenue at a sluggish 4.4% compounded annual growth rate. This was below our standard for the banking sector and is a poor baseline for our analysis.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. National Bank Holdings’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 1.6% annually.

This quarter, National Bank Holdings missed Wall Street’s estimates and reported a rather uninspiring 5.5% year-on-year revenue decline, generating $100.6 million of revenue.

Net interest income made up 79.6% of the company’s total revenue during the last five years, meaning lending operations are National Bank Holdings’s largest source of revenue.

Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams.

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Tangible Book Value Per Share (TBVPS)

Banks are balance sheet-driven businesses because they generate earnings primarily through borrowing and lending. They’re also valued based on their balance sheet strength and ability to compound book value (another name for shareholders’ equity) over time.

Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.

National Bank Holdings’s TBVPS grew at a mediocre 4.1% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 11.3% annually over the last two years from $22.45 to $27.80 per share.

Over the next 12 months, Consensus estimates call for National Bank Holdings’s TBVPS to grow by 5% to $29.18, lousy growth rate.

Key Takeaways from National Bank Holdings’s Q4 Results

We struggled to find many positives in these results. Its revenue missed and its net interest income fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 2.5% to $39.04 immediately after reporting.

The latest quarter from National Bank Holdings’s wasn’t that good. One earnings report doesn’t define a company’s quality, though, so let’s explore whether the stock is a buy at the current price. We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).