The loan source buys two PPP portfolios at the end of the second quarter.



This week, the two banks entered into deals to sell their portfolios under the Payroll Protection Program to The Loan Source, which obtained such loans.

Trustmark Corp. announced the sale of $ 354.2 million in PPP loans to The Loan Source on Wednesday, allowing the $ 16.9 billion lender to recognize $ 18.2 million in fees in its second quarter results. The move also allows staff to focus on traditional lending channels, Brad Millsaps, who works in Jackson, Miss., Wrote Wednesday in a research note for Piper Sandler.

Dime Community Bancshares in Hauppog, NY, announced the sale of its 2021 PPP portfolio – about $ 585 million in loans – to The Loan Source on Monday as part of a deal expected to add $ 20.5 million in commission income to second quarter. It should also increase the material book value of one share, which stood at $ 21.43 on March 31, by 34 cents.

Millsaps raised its annualized earnings per share Trustmark three cents to $ 2.48. Net income for the quarter ended March 31 was $ 52 million, or $ 0.82 per share, according to Trustmark.

These loans represent virtually all PPP loans issued by the bank in 2021, Trustmark said in an 8-K Current Events filed with the Securities and Exchange Commission. As of March 31, Trustmark held $ 680 million in PPP loans, so Wednesday’s deal cuts its portfolio size by more than half.

Dime, with $ 13 billion in assets, reported PPP loans totaling $ 1.43 billion as of March 31. As with Trustmark, freeing staff to focus on what CEO Kevin O’Connor called “more traditional lending efforts,” was instrumental in Dime’s decision. sell.

“It’s time to continue helping our clients by partnering with a reputable firm with deep PPP expertise to take over the ongoing service and forgiveness process for our 2021 creations,” O’Connor said in a press release. …

New York-based The Loan Source and its service partner, ACAP SME, have acquired PPP portfolios from a number of banks, including Peapack-Gladstone Financial Corp. with $ 6 billion in assets in Bedminster, New Jersey, Northeast Bank with $ 2 billion in Portland, Maine, and Southern First Bancshares with $ 2.6 billion in Greenville, South Carolina.

On June 25, the Federal Reserve announced that it would extend the payroll protection loan that The Loan Source and its partners used to fund transactions for an additional month until July 31.

Congress created a PPP in March 2020 to provide emergency financial assistance to small businesses affected by the coronavirus pandemic. Under the program, which ran as part of the Small Business Administration’s lending program 7 (a), banks made loans and then received reimbursement from the federal government.

A total of US $ 799.8 billion was disbursed under PPPs, including US $ 277.7 billion in 2021 until the end of loans on May 31.


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