Dime Community Bancshares (NASDAQ:DCOM) Issues Earnings Results

Dime Community Bancshares (NASDAQ:DCOM) released its earnings results on Tuesday. The savings and loans company reported $0.91 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.86 by $0.05, Zacks reports. Dime Community Bancshares had a return on equity of 9.12% and a net margin of 15.15%. During the same period last year, the company posted $0.59 EPS.

Here are the key takeaways from Dime Community Bancshares’ conference call:

• Record third-quarter revenue of $135 million and core EPS of $0.91 reflected 53% year-over-year EPS growth, a 1.10% ROA and a core efficiency ratio below 48%.
• The net interest margin rose for the 10th consecutive quarter to 3.35% reported, or approximately 3.32% excluding purchase accounting and prepayment fees. Management raised its long-term outlook, now seeing existing-balance-sheet NIM above 3.60% by the end of 2027, supported by loan repricing and stable deposit costs.
• Business loans grew approximately 30% year over year, with diversified contributions from C&I, fund finance, lender finance, sponsor finance and healthcare. The loan pipeline was about $1.4 billion, while core deposits increased roughly $1.1 billion year over year, including growth in non-interest-bearing DDA.
• Dime agreed to acquire $600 million-asset Empire State Bank for consideration that is slightly more than 50% cash; management expects the transaction to be about 3.5% accretive to run-rate earnings, with an internal rate of return above 20% and only about a 35-basis-point impact on capital ratios.
• Credit costs remain elevated, with a $13.8 million provision, allowance-to-loans rising to 0.99% and higher NPAs tied to specific C&I and multifamily exposures. Management expects provisions to remain at roughly recent-quarter levels for the next couple of quarters, while multifamily runoff and rent-regulated housing exposure continue to weigh on loan growth.

Dime Community Bancshares Stock Performance

Shares of Dime Community Bancshares stock traded up $2.24 during midday trading on Tuesday, hitting $40.94. The company had a trading volume of 859,156 shares, compared to its average volume of 313,030. The business’s 50 day simple moving average is $40.08 and its two-hundred day simple moving average is $38.84. The stock has a market cap of $1.81 billion, a PE ratio of 17.35 and a beta of 1.01. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.02 and a quick ratio of 1.02. Dime Community Bancshares has a 1-year low of $25.63 and a 1-year high of $41.97.

Dime Community Bancshares Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 23rd. Stockholders of record on Friday, October 16th will be paid a $0.25 dividend. The ex-dividend date is Friday, October 16th. This represents a $1.00 annualized dividend and a dividend yield of 2.4%. Dime Community Bancshares’s dividend payout ratio (DPR) is presently 36.10%.

Dime Community Bancshares News Roundup

Here are the key news stories impacting Dime Community Bancshares this week:

• Positive Sentiment: Q3 earnings beat expectations: Dime reported earnings of $0.91 per share, exceeding consensus estimates of approximately $0.86–$0.87. EPS also increased substantially from $0.59–$0.61 in the year-ago quarter. The company posted a 9.12% return on equity and a 15.15% net margin. Dime Community Bancshares Q3 earnings report
• Positive Sentiment: Revenue also topped estimates: Dime Community Bancshares exceeded Wall Street expectations for quarterly revenue, reinforcing the view that operating performance was better than anticipated. Dime Community Q3 earnings and revenue report
• Positive Sentiment: Expansion in Staten Island: The company agreed to acquire ES Bancshares, Inc., a transaction intended to strengthen Dime’s Staten Island presence and increase its franchise value. The deal could provide additional scale, customers and potential operating synergies. Dime Community Bancshares ES Bancshares acquisition announcement
• Neutral Sentiment: The acquisition may introduce integration, execution and transaction-related risks. Investors will likely focus on the purchase terms, timing, expected cost savings and the effect on capital levels as more details become available.

Insiders Place Their Bets

In other Dime Community Bancshares news, Director Raymond A. Nielsen sold 1,800 shares of the stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $41.73, for a total value of $75,114.00. Following the completion of the sale, the director directly owned 32,400 shares of the company’s stock, valued at $1,352,052. This represents a 5.26% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Basswood Capital Management, L sold 53,000 shares of the stock in a transaction on Friday, July 31st. The shares were sold at an average price of $40.76, for a total transaction of $2,160,280.00. Following the completion of the sale, the director directly owned 6,440 shares of the company’s stock, valued at approximately $262,494.40. This trade represents a 89.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 134,595 shares of company stock worth $5,506,229 in the last ninety days. 7.40% of the stock is currently owned by insiders.

About Dime Community Bancshares

Dime Community Bancshares, Inc is the parent company of Dime Community Bank, a community-focused commercial bank serving businesses, individuals and local organizations. The bank provides deposit accounts, commercial and residential real estate lending, multifamily and small-business financing, consumer loans, treasury and cash-management services, and wealth-management solutions.

Dime Community Bank’s market is concentrated primarily in Long Island and the New York City metropolitan area, including Brooklyn, Queens, and Manhattan.