Esquire Financial Holdings in Jericho, N.Y., plans to sell its portfolio of loans tied to the National Football League’s concussion settlement program.
The $1.1 billion-asset company said in a press release Monday that it moved the $23.6 million portfolio to held-for-sale status during the third quarter as part of a plan to sell the loans to an unnamed fund. The loans had a fair value of $14.2 million on Sept. 30, based on an independent third-party valuation.
Esquire, which stopped originating NFL loans in December 2017, said the sale will reduce its exposure and extend the portfolio’s duration.
The company recorded a $3 million loan-loss provision in the third quarter in conjunction with the move.
Esquire had previously disclosed that, as of June 30, it had received payoffs on about 29% of its NFL claimant loans. At that point, the company had charged off 6% of its NFL loans. The loans had a weighted average remaining maturity of less than a year. Esquire had classified $4 million of loan exposures as special mention and $2.3 million as substandard.