National Bank Holdings reported an $8.8 million net loss for the third quarter of 2026, as provisions for credit losses and acquisition-related expenses weighed on results. The loss compared with net income of $26.5 million in the preceding quarter.
Key Takeaways
- The bank recorded $40.6 million in provision expense, mainly tied to identified commercial loans.
- Adjusted net income was $2.9 million after excluding acquisition and restructuring expenses.
- Management targeted more than $1 in earnings per share for the fourth quarter.
National Bank Holdings results and credit costs
The company reported a third-quarter loss of $0.20 per diluted share, compared with earnings of $0.58 per diluted share in the second quarter. Results also included $15.2 million in pre-tax acquisition and restructuring expenses and a $4.0 million impairment on a third-party financial technology investment.
Chief Executive Officer Tim Laney said the provision expense was tied to a handful of specifically identified commercial credits, mainly in the franchise and healthcare industries. The company said it had made personnel and process improvements in those areas.
Excluding acquisition and restructuring expenses, adjusted net income was $2.9 million, or $0.06 per diluted share. That non-GAAP measure does not replace the reported net loss.
| Item | Details |
|---|---|
| Provision for credit losses | $40.6 million in the third quarter, versus $1.5 million in the second quarter |
| Non-performing loans | 0.44% of total loans at September 30, versus 0.31% at the prior quarter-end |
| Common equity tier 1 capital ratio | 11.69% at September 30, 2026 |
| Third-quarter share buybacks | $11.9 million |
Margin expands as loans and deposits grow
Fully taxable equivalent net interest income rose $3.6 million from the second quarter to $115.2 million. The company attributed the increase primarily to growth in average interest-earning assets and an additional day in the quarter. Its fully taxable equivalent net interest margin widened by six basis points to 4.00%.
Loans rose $119.4 million to $9.9 billion at September 30. Average total deposits increased $96.0 million to $10.3 billion during the quarter.
Fourth-quarter target and planned branch sale
Laney said management was working toward a target of more than $1 in earnings per share in the fourth quarter. The target is not a reported result.
Separately, NBH Bank agreed on October 24 to sell its Palm Beach, Florida, banking center, including its loans and deposits. The bank expects the transaction to reduce both loans and deposits by approximately $0.2 billion and to close in mid-2027. The agreement provides for a 5.00% deposit premium, subject to a minimum of $8.8 million.
Next milestone
Management is scheduled to discuss the results on an earnings call at 11:00 a.m. Eastern time on October 28, 2026.
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