The Bank Slate


Esquire selling loans tied to NFL concussion settlement

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.

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