Dime Community Bancshares (NASDAQ:DCOM) Issues Earnings Results

Dime Community Bancshares (NASDAQ:DCOM) issued 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 net margin of 15.15% and a return on equity of 9.12%. The company had revenue of $135.35 million during the quarter, compared to analyst estimates of $131.16 million. During the same quarter last year, the business 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 Price Performance

NASDAQ DCOM opened at $40.67 on Thursday. Dime Community Bancshares has a fifty-two week low of $25.63 and a fifty-two week high of $41.97. The stock’s 50-day moving average is $40.08 and its two-hundred day moving average is $38.94. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.02 and a quick ratio of 1.02. The firm has a market cap of $1.80 billion, a P/E ratio of 17.23 and a beta of 1.01.

Dime Community Bancshares Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 23rd. Shareholders of record on Friday, October 16th will be given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 2.5%. The ex-dividend date of this dividend is Friday, October 16th. Dime Community Bancshares’s dividend payout ratio is presently 36.10%.

Analysts Set New Price Targets

DCOM has been the topic of a number of recent research reports. Piper Sandler restated an “overweight” rating and issued a $47.00 target price (up from $45.00) on shares of Dime Community Bancshares in a research note on Wednesday. Keefe, Bruyette & Woods raised their price target on Dime Community Bancshares from $47.00 to $49.00 and gave the stock an “outperform” rating in a research note on Wednesday. Four investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $43.75.

Insider Transactions at Dime Community Bancshares

In other news, Director Raymond A. Nielsen sold 1,800 shares of the stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $41.73, for a total transaction of $75,114.00. Following the transaction, the director owned 32,400 shares of the company’s stock, valued at approximately $1,352,052. This represents a 5.26% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Basswood Capital Management, L sold 7,170 shares of the firm’s stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $41.40, for a total value of $296,838.00. Following the completion of the transaction, the director directly owned 6,099 shares in the company, valued at $252,498.60. The trade was a 54.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 134,595 shares of company stock valued at $5,506,229 in the last ninety days. Insiders own 7.40% of the company’s stock.

More Dime Community Bancshares News

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

• Positive Sentiment: Q3 earnings and revenue exceeded expectations. DCOM reported adjusted earnings of $0.91 per share, above the $0.86 consensus estimate and up from $0.59 a year earlier. Revenue of $135.35 million also topped expectations of $131.16 million. Dime Community Bancshares Q3 earnings report
• Positive Sentiment: Keefe, Bruyette & Woods raised its price target. The firm increased its target from $47 to $49 and maintained an “outperform” rating, implying roughly 20.5% upside from the referenced share price. Benzinga analyst price target report
• Positive Sentiment: Management’s outlook emphasizes profitable growth. Recent coverage highlighted deposit growth, broader loan diversification and the potential strategic benefits of the company’s acquisition activity. DCOM Q3 deep dive
• Neutral Sentiment: DCOM agreed to acquire ES Bancshares. The transaction is intended to strengthen Dime’s Staten Island presence and franchise value, but investors may remain focused on the deal’s integration costs, timing and eventual earnings contribution. Dime Community acquisition of ES Bancshares

About Dime Community Bancshares

Dime Community Bancshares, Inc is the bank holding company for Dime Community Bank, a full-service commercial bank serving businesses, individuals and local communities in the New York metropolitan area. The company’s primary markets include Long Island and New York City, with banking offices across Brooklyn, Queens, Manhattan, Nassau County and Suffolk County.

Dime Community Bank provides commercial and residential real estate lending, commercial and industrial loans, construction financing, residential mortgages and consumer loans.