National Bank Holdings doubles buyback to $100M, lifts dividend 3.2%
Colorado-based bank returns capital to shareholders after 10% tangible book value growth in 2025
National Bank Holdings Corporation has approved a significant expansion of its capital return program, authorizing a new $100 million share repurchase authorization that doubles the previous $50 million program while raising its quarterly dividend by 3.2% to $0.32 per share.
The Colorado-based bank holding company, which operates through its NBH Bank subsidiary, announced the shareholder-friendly initiatives alongside fourth-quarter earnings that showed adjusted net income of $22.7 million, or $0.60 per diluted share. For the full year 2025, the company reported adjusted earnings per share of $3.06 with a net interest margin of 3.94%.
Chief Executive Tim Laney said the dividend increase and expanded buyback authority "underscore our commitment to delivering attractive shareholder returns" following what he described as "meaningful capital growth in 2025 with a 10.0% increase in tangible common book value per share."
The new quarterly dividend of $0.32 per share, payable March 13 to shareholders of record February 27, represents an annualized yield of approximately 3.2% at the current share price of $40.06. The stock closed modestly lower on the announcement, down 0.6% to $40.06, giving the company a market capitalization of $1.5 billion.
National Bank Holdings' financial position provides flexibility for the expanded capital returns. The company reported a Common Equity Tier 1 ratio of 14.89%, a measure of bank capital adequacy that exceeds regulatory minimum requirements. Laney said the company's "diversified funding sources and a strong balance sheet" position it well for future growth.
The shareholder return measures come as National Bank Holdings integrates its recent acquisition of Vista Bancshares. The CEO expressed confidence that growth from the combined organization would "drive meaningful shareholder returns in 2026."
Analysts view the stock favorably, with three buy ratings and one hold among covering analysts, according to market data. The consensus price target of $45.75 suggests roughly 14% upside from current levels. The shares trade at a price-to-earnings ratio of 12.8 times trailing earnings and 1.1 times book value.
Regional banks have faced pressure from higher interest rates and economic uncertainty, but National Bank Holdings has outperformed many peers, with shares trading above their 200-day moving average of $37.86. The stock reached a 52-week high of $42.82 earlier this month compared to a low of $32.05 in October.
The company reported total interest and dividend income of $126.4 million in the fourth quarter, up from year-ago levels, though net income under generally accepted accounting principles totaled $16 million. The difference between GAAP and adjusted results primarily reflects merger-related expenses and other items.
Institutional investors hold more than 100% of the outstanding shares, indicating significant short interest and robust institutional participation in the stock. The buyback program could help reduce share count and potentially support the stock price by creating artificial demand for shares.
National Bank Holdings operates primarily in Colorado, Kansas, and Missouri through its branch network, offering commercial and consumer banking services. The company has emphasized operational efficiency and technology investment as part of its growth strategy.