Dime Community Bank, the wholly owned subsidiary of Dime Community Bancshares, Inc. (NASDAQ:DCOM) (the “Company” or “Dime”), announced the sale of Paycheck Protection Program loans (“PPP”) that it originated in 2021 to The Loan Source, Inc.
Kevin M. O’Connor, Chief Executive Officer of the Company, stated, “Dime was the leading community bank provider of PPP loans in our footprint. Our employees worked tirelessly to ensure our clients received funds to navigate COVID-19 and demonstrated our commitment to operating a highly responsive customer-focused platform. Now it is time to continue helping our clients by partnering with a well-respected firm, with deep expertise in the PPP space, to take over the ongoing servicing and forgiveness process for our 2021 originations. We expect the sale to free up our staff to focus on more traditional lending efforts and continue our track record of providing exemplary service.”
Mr. O’Connor continued, “As a result of the sale of the 2021 PPP originations, which were in excess of $585 million, we expect to realize a pre-tax gain of approximately $20.5 million in the second quarter of 2021, our Tangible Common Equity ratio is expected to increase by approximately 45 basis points and our Tangible Book Value per share is expected to increase by approximately $0.34.”
The Loan Source, Inc. and its servicing partner, ACAP SME, LLC, have invested heavily in technologies and personnel to aid PPP borrowers through the forgiveness process via an online portal.
