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Dime Community Bancshares (DCOM)
NASDAQ:DCOM
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Dime Community Bancshares
(NASDAQ:DCOM)
69Neutral
Positive Factors
Financial Performance
The reported net interest margin of 2.79% increased 24 bps from the linked quarter.
Upgrades
Shares of DCOM were upgraded to Overweight following the recent $144 million common equity raise.
Negative Factors
Risks
Risks include, but are not necessarily limited to, a deterioration in asset quality, a precipitous rise in interest rates, and general weakness in bank stock valuations.
Dime Community Bancshares (DCOM) vs. S&P 500 (SPY)
Market Cap
$1.18B
Dividend Yield3.7%
Average Volume (3M)249.71K
Price to Earnings (P/E)49.2
Beta (1Y)1.32
Revenue Growth0.87%
EPS Growth-74.06%
CountryUS
Employees887
SectorFinancial
Sector Strength77
IndustryBanking
Share Statistics
EPS (TTM)0.59
Shares Outstanding43,638,374
10 Day Avg. Volume233,131
30 Day Avg. Volume249,706
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.05
Price to Cash Flow (P/CF)3.30
P/FCF Ratio1.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$39.50Price Target Upside45.92% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Dime Community Bancshares Business Overview & Revenue Model
Company DescriptionDime Community Bancshares, Inc. is a publicly traded bank holding company headquartered in Hauppauge, New York. It operates through its wholly owned subsidiary, Dime Community Bank, which offers a comprehensive range of financial services. The bank serves commercial and retail customers primarily in the New York metropolitan area, providing services such as personal and business banking, commercial lending, and insurance products.
How the Company Makes MoneyDime Community Bancshares generates revenue primarily through interest income from its lending activities, including commercial and residential loans. The company also earns non-interest income from fees and service charges related to its banking operations, such as account maintenance fees, transaction fees, and investment services. Additionally, Dime Community Bank benefits from strategic partnerships and community-focused initiatives that help expand its customer base and product offerings, contributing to its overall earnings.
Dime Community Bancshares Financial Statement Overview
Summary
Dime Community Bancshares shows strong revenue growth and operational efficiency, with an 84.3% increase in revenue and improved EBIT margin. However, challenges are evident in the reduced net profit margin and ROE, indicating difficulties in converting revenue growth into net income. The improved debt-to-equity ratio enhances financial stability.Income Statement
Dime Community Bancshares has demonstrated strong revenue growth, with a substantial increase from $352.8 million in 2023 to $650.1 million in 2024, representing a revenue growth rate of 84.3%. The gross profit margin remains robust at 100%, reflecting effective cost management. However, the net profit margin has seen a decline, dropping from 27.2% in 2023 to 4.5% in 2024, indicating challenges in maintaining profitability. EBIT margin has improved significantly, rising from 41.4% to 99.0%, showcasing strong operational efficiency.75
Positive
Balance Sheet
The company's debt-to-equity ratio has improved markedly, dropping from 1.28 in 2023 to 0.04 in 2024, indicating reduced leverage and increased financial stability. Return on equity (ROE) has decreased from 7.8% to 2.1%, suggesting lower profitability relative to equity. The equity ratio remains stable at approximately 9.7%, indicating a consistent capital structure.70
Positive
Cash Flow
Free cash flow has grown from $85.2 million in 2023 to $92.8 million in 2024, reflecting a healthy free cash flow growth rate of 8.9%. The operating cash flow to net income ratio is high at 3.40, indicating strong cash generation relative to earnings. Free cash flow to net income ratio is also strong at 3.19, showcasing efficient cash flow management.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 650.15M | 352.78M | 418.02M | 399.68M | 180.48M | Gross Profit |
| 650.15M | 350.01M | 418.02M | 354.85M | 180.48M | EBIT |
| 643.49M | 145.97M | 279.59M | 148.17M | 55.73M | EBITDA |
| 0.00 | 0.00 | 222.11M | 158.59M | 60.05M | Net Income Common Stockholders |
| 29.08M | 96.09M | 152.56M | 104.00M | 42.32M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.97B | 1.34B | 1.12B | 1.96B | 1.33B | Total Assets |
| 14.35B | 13.64B | 13.19B | 12.07B | 6.43B | Total Debt |
| 50.00M | 1.57B | 1.39B | 290.06M | 340.77M | Net Debt |
| -1.23B | 1.11B | 1.22B | -103.66M | -536.06M | Total Liabilities |
| 12.96B | 12.41B | 12.02B | 10.87B | 340.77M | Stockholders Equity |
| 1.40B | 1.23B | 1.17B | 1.19B | 517.83M |
| Cash Flow | Free Cash Flow | |||
| 92.80M | 85.15M | 291.43M | 1.10B | 42.26M | Operating Cash Flow |
| 99.06M | 90.87M | 295.17M | 146.33M | 47.39M | Investing Cash Flow |
| 64.13M | -214.05M | -1.33B | 1.10B | -716.84M | Financing Cash Flow |
| 662.84M | 411.42M | 812.59M | -1.10B | 1.43B |
Dime Community Bancshares Technical Analysis
Negative
27.07
Price Trends
30.83
Negative
31.84
Negative
27.31
Negative
Market Momentum
-1.00
Positive
25.19
Positive
8.58
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DCOM, the sentiment is Negative. The current price of 27.07 is below the 20-day moving average (MA) of 30.23, below the 50-day MA of 30.83, and below the 200-day MA of 27.31, indicating a bearish trend. The MACD of -1.00 indicates Positive momentum. The RSI at 25.19 is Positive, neither overbought nor oversold. The STOCH value of 8.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DCOM.
Dime Community Bancshares Risk Analysis
Dime Community Bancshares disclosed 27 risk factors in its most recent earnings report. Dime Community Bancshares reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Dime Community Bancshares Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $1.18B | 49.16 | 2.19% | 3.70% | 0.87% | -74.06% | |
69 Neutral | $881.46M | 13.66 | 5.99% | 3.13% | 6.06% | -15.21% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
54 Neutral | $4.50B | 788.30 | 0.71% | 5.05% | 5.12% | ― | |
50 Neutral | $402.33M | ― | -8.79% | 6.67% | 11.26% | -498.90% | |
46 Neutral | $438.58M | 16.43 | -4.49% | 6.75% | -3.66% | -196.64% |
* Financial Sector Average
Performance Comparison
DCOM
Dime Community Bancshares
27.07
9.67
55.57%
FFIC
Flushing Financial
12.86
0.81
6.72%
KRNY
Kearny Financial
6.18
0.38
6.55%
SLG
SL Green Realty
57.60
8.75
17.91%
CNOB
ConnectOne Bancorp
22.55
3.32
17.26%
Dime Community Bancshares Earnings Call Summary
Earnings Call Date: Jan 23, 2025 | % Change Since: -14.74% | Next Earnings Date: Apr 25, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements in deposit growth, capital strength, and net interest margin expansion. However, concerns around increased loan loss provisions and charge-offs presented challenges. Overall, the positive aspects outweighed the negative, demonstrating strong performance and potential for future growth.Highlights
Strong Deposit Growth
Raised approximately $1.8 billion in core deposits with 40% in noninterest-bearing deposits. Opened over 11,000 accounts and 7,000 individual customer relationships.
Reduction in Wholesale Borrowings
Reduced wholesale borrowings and brokered deposits by approximately $1.2 billion over the past year.
Loan Growth in Business Segments
Business loans increased by over $70 million in Q4 and $400 million for the year, driven by C&I and healthcare verticals.
Capital Ratios and Equity Offering
Raised approximately $136 million from a common equity offering, leading to a common equity Tier 1 ratio in excess of 11% and a total capital ratio over 15.5%.
Net Interest Margin Expansion
NIM increased to 2.79% in Q4 with a pathway to exceed 3% in future quarters.
Outstanding CRA Rating
Received second consecutive outstanding CRA rating, with perfect scores on lending, investment, and service tests.
Lowlights
High Loan Loss Provisions
Loan loss provision increased to $13.7 million in Q4, with allowance to loans rising to 82 basis points.
Charge-offs and Credit Concerns
Charge-offs for 2024 were 17-18 basis points, with no large credits but spread across C&I, commercial real estate, and multifamily.
Pension Plan Termination Costs
Incurred $1.2 million in termination expenses for a legacy pension plan, with an additional $4.5 million expected in Q1 2025.
Company Guidance
During the earnings call for Dime Community Bancshares, guidance for 2025 highlighted several key metrics. The company expects its net interest margin (NIM) to increase, with a projected rise to approximately 2.90% in the first quarter, aiming for a 3% NIM over the year, due to factors such as core deposit growth and loan repricing. The bank plans to maintain its CRE concentration in the low 400s and grow period-end loan balances in the low single-digit range. Noninterest income is anticipated to be between $40 million and $42 million, while core cash noninterest expenses are projected at $234 million to $235 million. The bank also expects a tax rate between 27% and 28% and aims to achieve a charge-off range of 20 to 30 basis points. These projections underscore Dime's strategy to increase profitability while managing expenses and capital.Dime Community Bancshares Corporate Events
Executive/Board Changes
Dime Community Bancshares Announces Board Member Retirement
Neutral
Jan 14, 2025
On January 8, 2025, Michael P. Devine announced his retirement from the Board of Directors of Dime Community Bancshares, Inc. and its subsidiary, Dime Community Bank, effective April 24, 2025. This announcement follows an earlier filing on December 23, 2024, further solidifying the upcoming leadership transition.
Executive/Board Changes
Dime Community Bancshares Announces Retirement of Board Member
Neutral
Dec 20, 2024
Dime Community Bancshares, Inc. has announced the retirement of Michael P. Devine from its Board of Directors. Devine, who began his career with the company in 1971, has played a crucial role in the bank’s evolution from a mutual to a stock-owned institution and its growth into a full-service commercial bank. His departure marks the end of an influential era, but the company is well positioned for future growth and continues to benefit from a strong leadership team.
Business Operations and StrategyFinancial Disclosures
Dime Community Bancshares Repositions Investment Portfolio
Neutral
Dec 12, 2024
Dime Community Bancshares has completed a strategic repositioning of its investment securities portfolio by selling $379 million in lower-yielding debt securities and purchasing the same amount in higher-yielding securities, which will result in a one-time pre-tax loss of approximately $43 million in Q4 2024. Additionally, the company has begun distributing payments to participants of a terminated legacy pension plan, incurring an expected expense of $1 million in Q4 2024 and an additional $2 million in Q1 2025, as part of prudent expense management.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.