Will Free Up Bank Staff To Focus On Other Lending
September 9, 2020
Peapack-Gladstone Bank, the wholly owned subsidiary of Peapack-Gladstone Financial Corporation, announced the sale of $354.9 million of Paycheck Protection Program loans to The Loan Source, Inc. The bank expects to realize a pre-tax gain of approximately $7.4 million in the current quarter as a result of the sale. After giving effect to the sale, Peapack-Gladstone Bank will hold approximately $203.5 million of Paycheck Protection Loans, almost all of which exceed $2 million in original principal amount.
“Our employees worked around the clock to process thousands of PPP loan applications over the past few months,” stated Doug Kennedy, president and CEO. “It’s been a tremendous effort, and now it’s time to continue helping our clients navigate the economic impact of COVID-19 by partnering with a long-standing and respected SBA small business lending company, with deep knowledge and focus on PPP, to take over the forgiveness and ongoing servicing process.
“We expect the sale of the PPP loans to allow a return to a more normal course of business, freeing up staff to focus on traditional lending efforts and providing excellent service to our clients.”
The Loan Source 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.