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National Bank Holdings says it could see more costs in energy portfolio

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National Bank Holdings says it could see more costs in energy portfolio

executiveson July 22 said the company is continuing to work through its nonaccrual energyloans.

The companycharged off a previously reserved nonaccrual credit during the second quarter. ButNational Bank Holdings Chief Risk Officer Rick Newfield said during a conferencecall to discuss its quarterly earnings that it is still seeing costs related toother nonaccrual loans rise. "With respect to the three remaining nonaccuralloans, we did see further deterioration on two of these loans, and therefore tookadditional specific reserves of $5.1 million on these loans," Newfield saidduring the quarter. He added that one of the loans, to a midstream sector, drovethe majority of the reserves it added related to its energy portfolio.

NationalBank Holdings is working on maintaining the asset values, Newfield said, but hecautioned that "should these strategies falter and the bank group moves toearly disposition of the assets, there is additional impairment risk on this loanof approximately $4 million."

The companyrecorded record new loan originations of $316.9 million during the quarter, Newfieldsaid.

NationalBank Holdings reported record net income of $4.5 million, or 15 cents per share,for the second quarter, compared to a net loss of $1.3 million, or 4 cents per share,for the second quarter of 2015.