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Dime Community Bancshares, Inc. (DCOM)
:DCOM
US Market

Dime Community Bancshares (DCOM) AI Stock Analysis

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Dime Community Bancshares

(NASDAQ:DCOM)

Rating:67Neutral
Price Target:
$28.00
â–²(1.01%Upside)
Dime Community Bancshares demonstrates strong financial performance, particularly in cash flow and strategic growth initiatives. However, high valuation and mixed technical indicators limit the upside potential. Positive earnings call sentiment and corporate events provide additional support, but valuation concerns temper the overall score.
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)

Dime Community Bancshares Business Overview & Revenue Model

Company DescriptionDime Community Bancshares, Inc. (DCOM) is a publicly traded financial holding company based in Hauppauge, New York. It operates as the parent company for Dime Community Bank, providing a range of banking and financial services primarily focused on serving small and medium-sized businesses, commercial real estate investors, and retail customers. The bank offers traditional banking services such as checking and savings accounts, personal and business loans, as well as cash management services and online banking options.
How the Company Makes MoneyDime Community Bancshares generates revenue primarily through the interest income earned from its loan portfolio, which includes commercial real estate loans, commercial and industrial loans, and consumer loans. Additionally, the company earns interest income from its investment securities. Non-interest income streams, such as fees from deposit accounts, loan servicing fees, and other banking services, also contribute to its earnings. Dime Community Bancshares strategically partners with local businesses and maintains a strong community presence to attract and retain customers, further driving its revenue.

Dime Community Bancshares Earnings Call Summary

Earnings Call Date:Apr 22, 2025
(Q1-2025)
|
% Change Since: 10.35%|
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 Financial Statement Overview

Summary
Dime Community Bancshares presents a solid financial profile with strong cash flow generation, good liquidity, and operational efficiency. The income statement reveals stable revenue and profit margins, though faced with some pressure on operating income. The balance sheet shows stability with manageable leverage levels, but there is room for improvement in equity returns.
Income Statement
75
Positive
Dime Community Bancshares shows stable revenue with a modest increase from the previous year. The Gross Profit Margin remains robust at 45.7% for TTM, though it has decreased compared to previous years. Net Profit Margin is healthy at 5.1% for TTM. Revenue growth has been steady, indicating resilience in operations, though recent declines in operating income suggest potential margin pressures.
Balance Sheet
70
Positive
The company maintains a solid financial position with an Equity Ratio of 10.0% and a Debt-to-Equity Ratio of 0.59 for TTM, indicating manageable leverage levels. The Return on Equity is moderate at 2.3% for TTM, reflecting stable but not high returns to shareholders. The balance sheet suggests stability but highlights a need for improved equity returns.
Cash Flow
80
Positive
The Cash Flow analysis reveals strong Free Cash Flow growth, with a Free Cash Flow to Net Income Ratio of 3.91 for TTM, indicating efficient profit conversion into cash. Operating Cash Flow is robust, outperforming net income, which underscores good operational cash generation. Overall, cash flow metrics exhibit strength in liquidity and financial health.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue646.22M646.19M645.57M477.38M426.69M255.28M
Gross Profit295.42M277.99M350.01M412.64M393.46M172.81M
EBITDA62.19M58.30M144.33M222.11M158.59M60.05M
Net Income32.85M29.08M96.09M152.56M104.00M42.32M
Balance Sheet
Total Assets14.10B14.35B13.64B13.19B12.07B6.78B
Cash, Cash Equivalents and Short-Term Investments1.74B1.29B1.34B1.12B1.96B782.46M
Total Debt828.80M979.32M1.57B1.39B290.06M1.48B
Total Liabilities12.69B12.96B12.41B12.02B10.87B6.08B
Stockholders Equity1.41B1.40B1.23B1.17B1.19B701.10M
Cash Flow
Free Cash Flow128.29M92.80M85.15M291.43M146.33M58.98M
Operating Cash Flow133.74M99.06M90.87M295.17M146.33M59.93M
Investing Cash Flow-86.83M64.13M-214.05M-1.33B1.10B-324.38M
Financing Cash Flow612.94M662.84M411.42M812.59M-1.10B352.57M

Dime Community Bancshares Technical Analysis

Technical Analysis Sentiment
Positive
Last Price27.72
Price Trends
50DMA
26.37
Positive
100DMA
27.33
Positive
200DMA
29.08
Negative
Market Momentum
MACD
0.22
Negative
RSI
58.79
Neutral
STOCH
71.70
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 27.72 is above the 20-day moving average (MA) of 26.68, above the 50-day MA of 26.37, and below the 200-day MA of 29.08, indicating a neutral trend. The MACD of 0.22 indicates Negative momentum. The RSI at 58.79 is Neutral, neither overbought nor oversold. The STOCH value of 71.70 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 (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
LOLOB
77
Outperform
$1.42B23.956.10%0.38%12.30%-41.81%
BYBY
77
Outperform
$1.16B10.2711.08%1.45%7.63%-1.13%
76
Outperform
$1.19B10.5811.70%0.34%4.17%-0.91%
76
Outperform
$1.21B10.579.69%2.76%17.96%399.48%
67
Neutral
$16.86B11.649.71%3.83%11.61%-9.60%
67
Neutral
$1.21B43.642.45%3.61%-2.81%-64.24%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DCOM
Dime Community Bancshares
28.32
9.25
48.51%
BHLB
Berkshire Hills
26.50
4.57
20.84%
QCRH
QCR Holdings
71.61
13.48
23.19%
LOB
Live Oak Bancshares
31.73
-1.74
-5.20%
BY
Byline Bancorp
27.98
4.60
19.67%

Dime Community Bancshares Corporate Events

Dividends
Dime Community Bancshares Declares Quarterly Cash Dividend
Positive
Jun 26, 2025

On June 26, 2025, Dime Community Bancshares, Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.25 per common share, payable on July 24, 2025, to shareholders of record as of July 17, 2025. This decision continues the company’s trend of uninterrupted dividends, reinforcing its stable financial performance and commitment to providing shareholder value.

The most recent analyst rating on (DCOM) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Dime Community Bancshares stock, see the DCOM Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Dime Community Bancshares Elects Directors at Annual Meeting
Neutral
May 23, 2025

During the annual meeting of shareholders held on May 22, 2025, Dime Community Bancshares, Inc. successfully elected directors for terms expiring at the 2026 annual meeting. Additionally, the shareholders ratified the appointment of Crowe LLP as the independent public accounting firm for the year ending December 31, 2025, and approved the compensation of the company’s named executive officers on a non-binding, advisory basis.

The most recent analyst rating on (DCOM) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Dime Community Bancshares stock, see the DCOM Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Dime Community Bancshares Shareholders Approve Key Proposals
Positive
May 23, 2025

On May 22, 2025, Dime Community Bancshares, Inc. held its annual meeting of shareholders where a quorum was present with 38,465,309 shares represented. During the meeting, several proposals were voted on, including the election of directors, ratification of Crowe LLP as the independent registered public accounting firm for 2025, and approval of executive compensation on a non-binding advisory basis. All proposals received the requisite majority of votes, indicating strong shareholder support for the company’s governance and financial strategies.

The most recent analyst rating on (DCOM) stock is a Buy with a $39.00 price target. To see the full list of analyst forecasts on Dime Community Bancshares stock, see the DCOM Stock Forecast page.

Shareholder MeetingsFinancial Disclosures
Dime Community Bancshares Releases Annual Meeting Presentation
Neutral
May 21, 2025

On May 21, 2025, Dime Community Bancshares, Inc. released a financial presentation for its Annual Meeting of Shareholders, available on its website. This disclosure is informational and not considered filed under the Securities Exchange Act of 1934, nor incorporated by reference in any securities filings.

The most recent analyst rating on (DCOM) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Dime Community Bancshares stock, see the DCOM Stock Forecast page.

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 27, 2025