National Bank Holdings expects $46.8 million in commercial-loan charge-offs

National Bank Holdings said its banking subsidiary expects approximately $46.8 million in charge-offs tied to specific commercial loans, primarily in the franchise and healthcare industries.

The damage is concentrated.

The affected loans had $65 million in aggregate principal before reserves and charge-offs reduced their estimated balance to $18.2 million. The company expects $38 million to $40 million in provision expense for the quarter ended September 30.

A separate $4 million impairment on an investment in a financial-technology partnership will reduce non-interest income. Together, the impairments are expected to cut after-tax earnings by approximately $32 million to $34 million, or $0.72 to $0.76 per diluted share.