National Bank expects material Q3 impairments on franchise and healthcare loans
NBHC•National Bank Holdings expects $46.8 million in Q3 charge-offs, $38 million to $40 million in provision expense and a $4 million fintech investment impairment; the impacts are expected to reduce after-tax earnings by $32 million to $34 million, or $0.72 to $0.76 per share.
1. Expected Q3 impairments
The company expects material impairments on a unit’s commercial loans in the franchise and healthcare industries. Loans with a $65 million principal balance are expected to be charged down to $18.20 million, with $46.8 million in charge-offs and $38 million to $40 million in provision expense for Q3 2026.
2. Earnings and buyback
A $4 million impairment charge is expected on a fintech partnership investment. The impairments are expected to reduce after-tax earnings by $32 million to $34 million, or $0.72 to $0.76 per share, for Q3 and the nine months ended September 30, 2026; the board also approved an additional authorization to repurchase up to $40.10 million of Class A common stock.
