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Dime Community Bancshares (DCOM)
NASDAQ:DCOM
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Dime Community Bancshares (DCOM) AI Stock Analysis

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DCOM

Dime Community Bancshares

(NASDAQ:DCOM)

Rating:73Outperform
Price Target:
$32.00
â–²(5.37% Upside)
Dime Community Bancshares demonstrates solid financial performance with strong cash flow and operational efficiency. Positive earnings call sentiment and supportive corporate events bolster the stock's outlook. However, a high P/E ratio suggests valuation concerns, which are partially offset by a decent dividend yield. Technical indicators show moderate bullish momentum, contributing to a favorable 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 (DCOM) is a financial services holding company headquartered in New York, primarily engaged in providing a range of banking and financial services through its subsidiary, Dime Community Bank. The company operates in the banking sector, focusing on community banking and offering products such as loans, mortgages, deposits, and other related financial services to individual consumers and businesses in its operating markets. Dime Community Bancshares is dedicated to serving its communities with personalized banking solutions and is known for its commitment to customer service.
How the Company Makes MoneyDime Community Bancshares generates revenue primarily through net interest income, which is earned from the difference between the interest income generated from loans and the interest paid on deposits. The company offers various types of loans including commercial real estate loans, residential mortgages, and consumer loans, which contribute significantly to its interest income. Additionally, Dime generates non-interest income through fees and commissions from services such as account maintenance, transaction fees, and other banking services. The company may also engage in investment activities that can provide additional revenue streams. Strategic partnerships with local businesses and community organizations enhance its customer base and service offerings, further supporting its revenue generation.

Dime Community Bancshares Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 24, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance with significant growth in core earnings, core deposits, and business loans. The bank also achieved an improved NIM and maintained strong capital levels. However, these positives were slightly offset by increased operating expenses and credit loss provisions.
Q2-2025 Updates
Positive Updates
Increased Core Earnings Power
Core pretax pre-provision income increased to $49 million in Q2 2025 from $28 million a year ago, resulting in a core ROA of 85 basis points.
Growth in Core Deposits
Core deposits increased by $1.2 billion year-over-year, with new deposit teams growing their portfolios to approximately $2.2 billion.
Expansion in Business Loans
Business loans grew over $110 million in Q2 and over $370 million or 15% year-over-year.
Significant Loan Origination
Loan originations, including new lines of credit, increased to $450 million for the quarter.
Improved Net Interest Margin (NIM)
NIM increased to 2.98%, continuing a five-quarter growth trend.
Strong Capital Levels
Common equity Tier 1 ratio increased to 11.25% and total capital ratio grew to 15.8%, providing a competitive advantage.
Robust Loan Pipeline
The loan pipeline stands at $1.2 billion, up from $750 million in January, with a weighted average rate of 6.85%.
Negative Updates
Increased Operating Expenses
Core cash operating expenses, excluding intangible amortization and severance expense, was $59.9 million, primarily due to the hiring of production staff.
Credit Loss Provisions
A $9.2 million credit loss provision for the quarter was reported, with the allowance to loans increased to 86 basis points.
Company Guidance
During the Q2 earnings call for Dime Community Bancshares, Inc., guidance for the remainder of 2025 highlighted several key metrics and strategic priorities. The company anticipates a gradual upward bias in the net interest margin (NIM) for Q3 2025, with more pronounced expansion expected in Q4 as loan repricing opportunities unfold. Approximately $1.95 billion of adjustable and fixed-rate loans, with a weighted average rate of 4.1%, are set to reprice or mature between the second half of 2025 and full-year 2026, potentially boosting NIM by 30 basis points. Operating expenses are projected to be around $61.5 million for Q3, excluding intangible amortization. The effective tax rate is expected to be between 27% and 27.5%. The company aims for low single-digit balance sheet growth for the rest of the year, driven by business loan growth and offset by transactional CRE and multifamily attrition. Additionally, Dime Community continues to focus on developing new lending verticals and expects these initiatives to contribute meaningfully to growth in late 2025 and beyond.

Dime Community Bancshares Financial Statement Overview

Summary
Dime Community Bancshares presents a solid financial profile with strong cash flow generation, indicating good liquidity and operational efficiency. The income statement shows stable revenue and profit margins, though with some pressure on operating income. The balance sheet reflects a stable but moderate leverage position with 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 Price30.37
Price Trends
50DMA
28.56
Positive
100DMA
27.24
Positive
200DMA
28.84
Positive
Market Momentum
MACD
0.73
Negative
RSI
66.95
Neutral
STOCH
84.38
Negative
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 30.37 is above the 20-day moving average (MA) of 29.41, above the 50-day MA of 28.56, and above the 200-day MA of 28.84, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 66.95 is Neutral, neither overbought nor oversold. The STOCH value of 84.38 is Negative, 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 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$1.26B9.8617.20%3.13%-2.96%-6.62%
78
Outperform
$1.33B11.8111.36%0.31%-0.76%-1.60%
78
Outperform
$2.22B10.3210.13%2.73%15.55%401.99%
74
Outperform
$1.33B12.0812.34%2.24%8.97%27.79%
73
Outperform
$1.34B36.193.24%3.23%-3.08%-45.24%
72
Outperform
$1.28B29.512.75%2.87%3.58%-52.78%
68
Neutral
$18.05B11.7310.24%3.73%9.66%1.70%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DCOM
Dime Community Bancshares
30.37
5.94
24.31%
BBT
Beacon Financial Corporation
26.35
0.58
2.25%
PFBC
Preferred Bank
95.76
18.84
24.49%
QCRH
QCR Holdings
78.82
4.85
6.56%
RBCAA
Republic Bancorp
77.77
17.51
29.06%
CNOB
ConnectOne Bancorp
25.58
1.27
5.22%

Dime Community Bancshares Corporate Events

Dividends
Dime Community Bancshares Declares Quarterly Dividend
Positive
Jul 24, 2025

On July 24, 2025, Dime Community Bancshares announced that its Board of Directors declared a quarterly cash dividend of $0.34375 per share on its 5.50% Fixed-Rate Non-Cumulative Perpetual Preferred Stock, Series A. This dividend is payable on August 15, 2025, to shareholders of record as of August 8, 2025, reflecting the company’s continued commitment to providing returns to its investors.

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.

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.

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: Aug 13, 2025