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Dime Community Bancshares (DCOM)
NASDAQ:DCOM
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Dime Community Bancshares
(NASDAQ:DCOM)
Rating:70Outperform
Price Target:―
Positive Factors
Deposit Growth
Recent hiring efforts, particularly following the SBNY failure, have positively impacted non-interest bearing deposits and core deposit growth.
Earnings Forecast
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
Market 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. SPDR S&P 500 ETF (SPY)
Market Cap
$1.17B
Dividend Yield3.74%
Average Volume (3M)306.51K
Price to Earnings (P/E)42.1
Beta (1Y)1.04
Revenue Growth-2.81%
EPS Growth-64.23%
CountryUS
Employees887
SectorFinancial
Sector Strength82
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.57
Shares Outstanding43,818,560
10 Day Avg. Volume214,538
30 Day Avg. Volume306,515
Financial Highlights & Ratios
PEG Ratio-0.75
Price to Book (P/B)0.91
Price to Sales (P/S)0.00
P/FCF Ratio13.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$34.25Price Target Upside33.63% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Dime Community Bancshares Business Overview & Revenue Model
Company DescriptionDime Community Bancshares, Inc. operates as the holding company for Dime Community Bank that provides various commercial banking and financial services. It accepts time, savings, and demand deposits from the businesses, consumers, and local municipalities. The company also offers commercial real estate loans; multi-family mortgage loans; residential mortgage loans; secured and unsecured commercial and consumer loans; home equity loans; and construction and land loans. In addition, it invests in Federal Home Loan Bank, Federal National Mortgage Association, Government National Mortgage Association, and Federal Home Loan Mortgage Corporation mortgage-backed securities, collateralized mortgage obligations, and other asset backed securities; U.S. Treasury securities; New York state and local municipal obligations; U.S. government-sponsored enterprise securities; and corporate bonds. Further, the company offers certificate of deposit account registry services and insured cash sweep programs; merchant credit and debit card processing, automated teller machines, cash management services, lockbox processing, online banking services, remote deposit capture, safe deposit boxes, and individual retirement accounts; investment products and services through a third-party broker dealer; and title insurance broker services. As of December 31, 2021, it operated 60 branch locations throughout Long Island and the New York City boroughs of Brooklyn, Queens, Manhattan, and the Bronx. Dime Community Bancshares, Inc. was founded in 1910 and is headquartered in Hauppauge, New York.
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
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
25.63
Price Trends
26.47
Negative
28.50
Negative
28.66
Negative
Market Momentum
0.11
Positive
40.71
Neutral
23.19
Neutral
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 25.63 is below the 20-day moving average (MA) of 26.46, below the 50-day MA of 26.47, and below the 200-day MA of 28.66, indicating a bearish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 40.71 is Neutral, neither overbought nor oversold. The STOCH value of 23.19 is Neutral, 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 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.25B | 10.10 | 11.08% | 1.36% | 7.68% | -1.13% | |
71 Outperform | $1.20B | 10.66 | 11.70% | 0.34% | 4.17% | -0.91% | |
70 Outperform | $1.17B | 42.14 | 2.45% | 3.74% | -2.81% | -64.23% | |
66 Neutral | $1.28B | 21.57 | 6.10% | 0.43% | 12.30% | -41.81% | |
64 Neutral | $12.78B | 9.87 | 7.67% | 17015.06% | 12.34% | -5.99% | |
63 Neutral | $1.22B | 10.70 | 9.69% | 2.73% | 17.98% | 399.48% | |
56 Neutral | $1.26B | 63.52 | 1.27% | 4.87% | 6.67% | -83.79% |
* Financial Sector Average
Performance Comparison
DCOM
Dime Community Bancshares
25.63
6.72
35.54%
BHLB
Berkshire Hills
25.28
3.07
13.82%
QCRH
QCR Holdings
70.80
11.84
20.08%
SASR
Sandy Spring Bancorp
27.95
4.61
19.75%
LOB
Live Oak Bancshares
26.87
-8.43
-23.88%
BY
Byline Bancorp
26.49
3.16
13.54%
Dime Community Bancshares Earnings Call Summary
Earnings Call Date:Apr 22, 2025
(Q1-2025)
| % Change Since: 2.03%|
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.