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

Dime Community Bancshares (NASDAQ:DCOM) issued its quarterly earnings data on Tuesday. The savings and loans company reported $0.91 earnings per share for the quarter, beating the consensus estimate 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 quarter in the previous year, the firm 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 on Tuesday, reaching $40.94. 859,156 shares of the company traded hands, compared to its average volume of 313,030. 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 capitalization of $1.81 billion, a PE 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. The company has a 50 day moving average of $40.08 and a 200 day moving average of $38.84.

Dime Community Bancshares Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, October 23rd. Stockholders of record on Friday, October 16th will be given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend is Friday, October 16th. Dime Community Bancshares’s dividend payout ratio is currently 36.10%.

Insider Buying and Selling at Dime Community Bancshares

In other news, Director Basswood Capital Management, L sold 7,170 shares of the firm’s stock in a transaction on Thursday, August 13th. The stock was 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 of the company’s stock, valued at $252,498.60. This trade represents a 54.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Raymond A. Nielsen sold 1,800 shares of the stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $41.73, for a total transaction of $75,114.00. Following the completion of the sale, the director owned 32,400 shares in the company, valued at $1,352,052. This represents a 5.26% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 134,595 shares of company stock worth $5,506,229. Company insiders own 7.40% of the company’s stock.

Dime Community Bancshares Company Profile

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.