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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