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

Key Points

• Dime Community Bancshares reported quarterly EPS of $0.91, beating estimates by $0.05 and rising 53% year over year, alongside record revenue of $135 million and a 9.12% return on equity.
• Net interest margin increased for the 10th consecutive quarter to 3.35%, while business loans grew about 30% year over year and core deposits rose roughly $1.1 billion.
• The planned acquisition of Empire State Bank is expected to be accretive to earnings, but elevated credit costs, higher nonperforming assets and exposure to multifamily lending remain key risks.

Dime Community Bancshares (NASDAQ:DCOM - Get Free Report) 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.

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