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Dime Community Bancshares steps into healthcare lending as part of its commercial banking expansion

  • Dime makes a move into the healthcare sector to offer financing solutions and support capital-intensive projects.
  • The CFPB is keeping tabs on Apple’s policy of limiting access to the NFC chip technology that makes Apple Pay the only mobile payment service that utilizes the ‘tap and go’ technology embedded in iOS devices limiting other companies from developing their own tap-to-pay apps for Apple devices.
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Dime Community Bancshares steps into healthcare lending as part of its commercial banking expansion

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Dime Community Bancshares steps into healthcare lending as part of its commercial banking expansion


Dime Community Bancshares steps into healthcare lending as part of its commercial banking expansion

After Santander, Dime makes a move into the healthcare sector to offer financing solutions and support capital-intensive projects.

by SARA KHAIRI

Some banks are venturing into healthcare financing for a broader scope of lending, based on increasing demand in the sector catalyzed by the COVID-19 era.

The most recent FI to go down this route is Dime Community Bank, which provides financial services and loans primarily for multifamily housing. The NY-based firm is launching a healthcare banking unit to offer equipment financing and related loans for health systems as part of its commercial banking expansion.

The firm has signed on Daniel Shaya Csillag to spearhead this effort. Csillag comes from an extensive background of building and maintaining a portfolio of healthcare clientele at Valley Bank and earlier, managing lending relationships with acute care hospitals and nursing facilities at TD Bank.

Dime is moving into this new direction under the leadership of the newly appointed president and CEO, Stuart H. Lubow, who succeeded the firm's CEO of 16 years, Kevin M. O'Connor. Lubow took charge of the company on August 31, after the firm reported its better-than-expected second-quarter financial results. The firm grew average deposits by $150 million and loans by 6% on an annualized basis, with EPS of $1.01, beating expectations of $0.60. Lubow's focus has been on implementing strategies to foster the expansion and growth of the firm.

"We had the opportunity to capitalize on the disruption in the marketplace caused by the failure of Signature Bank and First Republic Bank by adding seven deposit focus groups. Of note, none of our local community bank competitors, both bigger and smaller, have been able to add the level and depth of deposit-focused talent that we’re able to add," said Lubow at the earnings conference.

In terms of loans, Dime's business loans stood at about 21% of the company's $10.8 billion loan portfolio on June 30. The expansion into the healthcare vertical may set the stage for Lubow's current expectation to grow loans by approximately $200 million in the second half of this year.

Dime's stock closed at $21.69 on September 5 -- $0.58 lower than its previous close -- after it unveiled its expansion plans with Csillag on board. While investors are forward-looking given the recent activities in the IPO market, they are cognizant of the fact that they aren't entirely out of the woods yet. This probably means they want to see some practical results around a viable market first and whether Dime's narrative can hold together over the course of time.


Market recap

The stock market saw some prominent gains this week

Affirm (AFRM) - up 8% to $22.48 per share

  • Affirm's shares surged this week on the back of its third-quarter financial results.
  • Affirm saw growth in repeat transactions per active customer. Q3 revenue came in at $380.98 million, surpassing the consensus estimate of $371.96 million.

Marqeta (MQ) - up 5% to $6.44 per share

  • Marqeta has acquired new customers Giftbit, Vivian, and Whistle, which drove the stock higher. Marqeta will integrate embedded banking and payment solutions into their products.
  • Embedded finance customers were responsible for over half of Marqeta’s bookings in the first half of 2023, according to the company.

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Tweet of the week


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Source: HelpLama

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Source: The Motley Fool


This week's reads

Goldman Sachs plans a fresh round of job cuts for underperformers

Reuters

Goldman Sachs is planning for another round of job cuts for employees who are deemed underperformers, which could come as soon as late October. The plan would typically result in between 1% and 5% of company-wide employees losing their jobs and Goldman is targeting a number at the lower end of the range in parts of its core investment banking and trading divisions.

BNY Mellon launches open banking payments service

Finextra

BNY Mellon has teamed up with Trustly to launch an open banking-based service that makes it practical for organizations to support consumer payments directly from bank accounts. Called Bankify, the service couples BNY Mellon's transaction payments expertise with Trustly's open banking capabilities. It lets the bank's clients offer end-users the ability to easily make payments directly from their bank accounts as an alternative to credit or debit cards and third-party payment platforms.

Apple, Google come under fire for their Tap-to-Pay walled gardens

PYMNTS

The CFPB has released a report against Apple’s policy of limiting access to the NFC chip technology that enables iPhone users to make payments. Apple Pay remains the only mobile payment service that utilizes the ‘tap and go’ technology embedded in iOS devices for in-store transactions and prevents other companies from developing their own tap-to-pay apps for Apple devices. The CFPB argues that removing these restrictions could foster fair competition and innovation among payment providers to provide improved consumer services.

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