Triumph Bancorp in Dallas has agreed to sell its health care finance business.
The $3.5 billion-asset company said in a press release that it decided to sell the group at the end of last year, when it had $68.7 million in loans.
The company had set aside $2.1 million to cover potential losses in the health care portfolio.
Triumph did not disclose the buyer or the price.
Lending to hospitals and other health providers has become a riskier business due to several health care policies, including some states’ refusal to expand Medicaid coverage after the passage of the Affordable Care Act and uncertainty surrounding the future of the law itself.
Opus Bank in Irvine, Calif., has already exited health care lending, and other banks have reported higher delinquencies and defaults.