Dime Community Bancshares (NASDAQ:DCOM) Releases Earnings Results, Beats Expectations By $0.05 EPS

Dime Community Bancshares (NASDAQ:DCOM) posted its quarterly earnings results on Tuesday. The savings and loans company reported $0.91 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%. During the same quarter in the previous year, the business earned $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

NASDAQ:DCOM traded up $2.24 during trading hours on Tuesday, reaching $40.94. The company had a trading volume of 859,156 shares, compared to its average volume of 313,030. The firm’s 50 day moving average price is $40.08 and its 200-day moving average price is $38.84. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 0.57. The firm has a market cap of $1.81 billion, a price-to-earnings ratio of 17.35 and a beta of 1.01. Dime Community Bancshares has a 52 week low of $25.63 and a 52 week high of $41.97.

Dime Community Bancshares Dividend Announcement

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

Insider Buying and Selling at Dime Community Bancshares

In related news, Director Basswood Capital Management, L sold 7,170 shares of the company’s stock in a transaction 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 owned 6,099 shares of the company’s stock, valued at approximately $252,498.60. This represents a 54.04% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Raymond A. Nielsen sold 1,800 shares of the company’s stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $41.73, for a total transaction of $75,114.00. Following the sale, the director directly owned 32,400 shares in the company, valued at approximately $1,352,052. The trade was a 5.26% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 134,595 shares of company stock valued at $5,506,229 over the last 90 days. 7.40% of the stock is currently owned by company 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.