Dime Community Bancshares (DCOM) AI Stock Analysis

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Dime Community Bancshares

(NASDAQ:DCOM)

68Neutral

Dime Community Bancshares has a solid financial performance with strong revenue growth and reduced leverage, but faces challenges in profitability. The earnings call was positive, highlighting growth in core deposits and loans. However, technical indicators suggest bearish trends, and the high P/E ratio points to overvaluation. Despite these concerns, the strategic initiatives and financial stability support a moderately positive outlook.

Positive Factors

Deposit Growth

Recent hiring efforts, particularly following the SBNY failure, have positively impacted non-interest bearing deposits and core deposit growth.

Earnings Potential

Analysts have increased the price target for DCOM shares to $39.00, reflecting confidence in the improved earnings profile and lower CRE concentration.

Stock Upgrade

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

$1.12B

Dividend Yield3.83%

Average Volume (3M)361.63K

Price to Earnings (P/E)39.9

Beta (1Y)1.11

Revenue Growth-2.81%

EPS Growth-64.23%

CountryUS

Employees887

SectorFinancial

Sector Strength87

IndustryBanks - Regional

Share Statistics

EPS (TTM)0.64

Shares Outstanding43,657,135

10 Day Avg. Volume329,587

30 Day Avg. Volume361,628

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap0.99

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit1.71

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$34.25

Price Target Upside31.33% 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 exhibits strong revenue growth and operational efficiency, supported by effective cost management and cash flow generation. However, the decline in net profit margin and ROE highlights challenges in translating revenue gains into net income. The significant reduction in leverage enhances financial stability.

Income Statement

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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

Technical Analysis Sentiment

Positive

Last Price26.08

Price Trends

50DMA

27.42

Negative

100DMA

29.58

Negative

200DMA

28.41

Negative

Market Momentum

MACD

-0.47

Negative

RSI

49.52

Neutral

STOCH

59.89

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DCOM, the sentiment is Positive. The current price of 26.08 is above the 20-day moving average (MA) of 25.42, below the 50-day MA of 27.42, and below the 200-day MA of 28.41, indicating a neutral trend. The MACD of -0.47 indicates Negative momentum. The RSI at 49.52 is Neutral, neither overbought nor oversold. The STOCH value of 59.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DCOM.

Dime Community Bancshares Risk Analysis

Dime Community Bancshares disclosed 24 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 (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BY	73 Outperform	$1.19B	9.52	11.08%	1.44%	7.68%	-1.13%
QCRH	71 Outperform	$1.10B	9.74	11.70%	0.36%	4.17%	-0.91%
DCOM	68 Neutral	$1.12B	39.88	2.47%	3.83%	-2.81%	-64.23%
LOB	66 Neutral	$1.19B	20.10	6.10%	0.45%	12.30%	-41.81%
Sector *	63 Neutral	$12.46B	9.55	8.14%	17103.96%	12.70%	-4.66%
BHLB	63 Neutral	$1.07B	16.23	9.69%	2.92%	17.98%	399.48%

* Financial Sector Average

Performance Comparison

DCOM

Dime Community Bancshares

25.69

7.06

37.90%

BHLB

Berkshire Hills

24.83

3.14

14.48%

QCRH

QCR Holdings

64.95

8.14

14.33%

LOB

Live Oak Bancshares

26.14

-8.56

-24.67%

Byline Bancorp

25.54

3.06

13.61%

Dime Community Bancshares Earnings Call Summary

Earnings Call Date:Apr 22, 2025

(Q1-2025)

% Change Since: 3.82%|

Next Earnings Date:Jul 25, 2025

Earnings Call Sentiment Positive

The earnings call highlighted significant growth in core deposits, NIM, and business loans, alongside strong capital ratios and strategic expansion plans. However, challenges include increased credit loss provisions, non-core expenses, and moderated loan growth expectations in the immediate term. Overall, the positive aspects of growth and strategic initiatives outweigh the negatives, indicating a strong position moving forward.

Q1-2025 Updates

Positive Updates

Core Deposits Increase

Core deposits were up $1.3 billion on a year-over-year basis, contributing to reduced brokered deposits and FHLB borrowing position.

Net Interest Margin (NIM) Growth

NIM increased for the fourth consecutive quarter to 2.9%, with further expansion expected due to loan repricing opportunities.

Business Loan Growth

Business loans grew over $60 million in the first quarter and over $400 million year-over-year, with a strong loan pipeline of $1.1 billion.

Core Earnings Power Increase

Core pre-tax provision income rose to $46 million, translating into a core ROA of 77 basis points, showing significant improvement over last year.

Adjusted EPS Increase

Adjusted EPS was $0.57 per share, reflecting a 36% linked-quarter increase and a 50% year-over-year increase.

Capital Levels Growth

Common equity Tier 1 ratio increased to 11.1% and total capital ratio grew to 15.7%, indicating strong capital positions.

Expansion into New Markets

Plans to expand into the Lakewood, New Jersey market and hiring of new bankers to support growth initiatives.

Negative Updates

Credit Loss Provision

A credit loss provision of $9.6 million was recorded for the quarter, with net charge-offs to average loans increasing to 26 basis points.

Non-Core Expenses

Non-core items included a $7 million expense related to the termination of a legacy pension plan.

Relatively Flat Loan Growth in Q2

Net loans expected to remain relatively flat in the second quarter, with growth picking up in the latter half of 2025.

Increased Non-Interest Expense Guidance

Full-year core cash non-interest expense guidance increased to $236.5 million to $237.5 million due to new hires.

Company Guidance

During Dime Community Bancshares Inc.'s first quarter earnings call for fiscal year 2025, the company provided several key metrics and guidance. Core deposits increased by $1.3 billion year-over-year, and new deposit teams have grown their portfolios to $1.9 billion. This growth allowed the company to decrease its brokered deposits and FHLB borrowing. The cost of deposits was reduced to 2.09%, while the net interest margin (NIM) increased to 2.9%, marking its fourth consecutive quarterly rise. Business loans grew by over $60 million during the quarter and more than $400 million year-over-year, with a current loan pipeline of approximately $1.1 billion at an average yield of 7.22%. Core pre-tax provision income rose to $46 million compared to $28 million the previous year, with a core return on assets of 77 basis points. For the remainder of 2025, the company expects its NIM to remain within a range of plus or minus three basis points of the 2.90% base NIM. Significant loan repricing opportunities are anticipated in the second half of 2025 and throughout 2026, which could increase the NIM by 35 basis points. The company also revised its full-year core cash non-interest expense guidance to between $236.5 million and $237.5 million, reflecting new hires aimed at expanding both loan and deposit growth.

Dime Community Bancshares Corporate Events

Executive/Board Changes

Dime Community Bancshares Promotes New Chief Accounting Officer

Neutral

Apr 28, 2025

On April 24, 2025, Dime Community Bancshares, Inc. announced the promotion of Elizabeth DiGangi to Chief Accounting Officer. Ms. DiGangi, who has been with the bank since 2019, brings extensive experience from her previous roles, including her time at Suffolk Credit Union.

Spark’s Take on DCOM Stock

According to Spark, TipRanks’ AI Analyst, DCOM is a Neutral.

Dime Community Bancshares shows strong financial performance in terms of revenue growth and operational efficiency, offset by declining profitability margins. The technical indicators suggest bearish momentum, while valuation metrics highlight a potential overvaluation risk. The earnings call provides a positive outlook with growth in deposits and loans, but challenges remain in managing expenses and credit risks. Overall, the company is positioned for growth, but caution is warranted given the current stock’s valuation and technical trends.

To see Spark’s full report on DCOM stock, click here.

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.