Dime Community Bank completed a securitization of $280 million of its multifamily loans through Freddie Mac's sponsored Q-deal securitization.
The Brooklyn, N.Y.-based bank bought the issued structured pass-through certificates as available-for-sale securities. Dime Community will retain the borrower relationships as the sub-servicer of the loans.
In a Dec. 19 note, Sandler O'Neill & Partners LP analyst Mark Fitzgibbon applauded the move, saying that it reduced the bank's concentration on commercial real estate loans to 807% from 849% and improved its balance sheet liquidity. Fitzgibbon stressed, however, that bundling the loans will only have "minimal" impact on earnings.
Piper Jaffray & Co. analyst Matthew Breese said that the securitization lowered the bank's loan-to-deposit ratio to 130% from 137%. He expects the bank's parent, Dime Community Bancshares Inc., to trade higher tomorrow.
For the transaction, PNC Capital Markets served as sole lead placement agent and Dechert LLP provided legal counsel.