National Bank Holdings expects USD 46.8 million loan charge-offs, flags USD 4 million investment impairment
NBHC•National Bank Holdings expects USD 46.8 million in third-quarter loan charge-offs and a USD 4 million impairment on a FinTech partnership investment. The charges are expected to reduce after-tax earnings by USD 32 million to USD 34 million, or USD 0.72 to USD 0.76 per diluted share.
1. Expected third-quarter charges
National Bank Holdings flagged impairments tied to commercial loans, primarily in franchise and healthcare, following third-quarter credit events. The bank expects USD 65 million of principal to be reserved or charged down to about USD 18.2 million, with estimated charge-offs of USD 46.8 million and provision expense of about USD 38 million to USD 40 million. A separate USD 4 million impairment on a FinTech partnership investment is expected to reduce non-interest income.
