Dime Community Bancshares (DCOM) AI Stock Analysis

• Market Cap: $1.49B
• Dividend Yield: 3.14%
• Average Volume (3M): 193.30K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.80
• Revenue Growth: -1.79%
• EPS Growth: -23.87%
• Country: US
• Employees: 887
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.79
• Shares Outstanding: 43,894,344
• 10 Day Avg. Volume: 176,675
• 30 Day Avg. Volume: 193,303
• PEG Ratio: -0.54
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 1.85
• P/FCF Ratio: 12.90
• Enterprise Value/Market Cap: -0.33
• Enterprise Value/Revenue: -0.73
• Enterprise Value/Gross Profit: -1.44
• Enterprise Value/Ebitda: -5.01
• 1Y Price Target: $38.33
• Price Target Upside: 8.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $37.00 ▲(4.64% Upside)

The score is driven primarily by solid financial performance (notably strong free cash flow generation and improving profitability/leverage). Technicals add support with an established uptrend and positive momentum. Valuation is reasonable with a solid dividend yield, while the earnings call and recent capital actions reinforce a constructive outlook despite ongoing ROE and CRE-related considerations.

Positive Factors

Strong free cash flow conversion

Very high free cash flow growth and near-100% conversion of net income into cash indicate durable internal funding for lending, capital returns, and debt reduction. This strengthens financial flexibility and supports strategic initiatives without reliance on external capital over the medium term.

Sustained NIM improvement and repricing tailwind

Consecutive quarterly NIM gains and management's explicit back‑book repricing plan (multi‑year loan repricings that could add ~20–25 bps) point to structural margin expansion. This provides a durable path to higher net interest income as the loan book reprices and supports earnings resilience.

Deposit franchise and low-cost funding mix

Large core deposit growth and a high share of non‑interest bearing demand deposits underpin a cheaper, sticky funding base. This structural funding advantage reduces reliance on wholesale funding, lowers cost of funds over time, and supports sustainable NIM and loan growth.

Negative Factors

Elevated CRE concentration

A high concentration in commercial real estate increases portfolio sensitivity to property market cycles and regulatory scrutiny. Reducing exposure toward mid‑350% will take quarters, constraining targeted loan mix, risk appetite, capital deployment, and potentially weighing on long‑term loan growth.

Weak return on equity and margin pressure

Low ROE combined with a declining gross margin signals challenges converting assets into shareholder returns. Unless structural margin expansion and efficiency gains persist, ROE recovery may lag, limiting sustainable shareholder value creation and constraining capital allocation choices.

Large cash balance limiting earning asset deployment

Maintaining an outsized liquidity buffer preserves flexibility but depresses earning asset utilization and NIM until redeployed. Prolonged high cash levels can materially reduce interest income generation and slow structural revenue growth absent timely deployment into loans or higher‑yield securities.

Dime Community Bancshares Business Overview & Revenue Model

Company Description

Dime 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 Money

Dime Community Bancshares generates revenue primarily through net interest income, which is derived from the difference between interest earned on loans and interest paid on deposits. The company's key revenue streams include interest income from commercial and residential loans, as well as investment securities. Additionally, Dime earns non-interest income from various fees associated with banking services, including account maintenance fees, transaction fees, and service charges. The bank also participates in fee income-generating activities such as wealth management and financial advisory services. Significant partnerships with local businesses and community organizations help enhance its customer base and drive deposit growth, further contributing to its overall earnings.

Dime Community Bancshares Financial Statement Overview

Summary

Overall financials are solid, led by strong free cash flow growth (TTM +61.53%) and high FCF-to-net income conversion (97.56%), alongside improving net margin (TTM 8.88%) and better leverage (debt-to-equity 0.57). The main offsets are a declining gross margin and weaker return on equity (4.11%), which temper the score.

Income Statement

Dime Community Bancshares shows a stable revenue growth trend with a TTM revenue growth rate of 2.43%. The gross profit margin has decreased over time, indicating potential cost management issues. However, the net profit margin has improved to 8.88% in the TTM, reflecting better profitability. The EBIT and EBITDA margins have also shown improvement, suggesting enhanced operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.57 in the TTM, indicating better leverage management compared to previous years. However, the return on equity has decreased to 4.11%, which may suggest challenges in generating returns for shareholders. The equity ratio remains stable, reflecting a balanced asset structure.

Cash Flow

Dime Community Bancshares has demonstrated strong free cash flow growth of 61.53% in the TTM, indicating robust cash generation capabilities. The free cash flow to net income ratio is high at 97.56%, showing effective conversion of income into cash. However, the operating cash flow to net income ratio is low, suggesting potential inefficiencies in cash operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	670.02M	646.19M	645.57M	477.38M	426.69M	255.28M
Gross Profit	340.53M	277.99M	350.01M	412.64M	393.46M	172.81M
EBITDA	97.72M	58.30M	144.33M	222.11M	158.59M	60.05M
Net Income	58.41M	29.08M	96.09M	152.56M	104.00M	42.32M
Balance Sheet
Total Assets	14.54B	14.35B	13.64B	13.19B	12.07B	6.78B
Cash, Cash Equivalents and Short-Term Investments	2.21B	1.29B	1.34B	1.12B	1.96B	782.46M
Total Debt	828.60M	979.32M	1.57B	1.39B	290.06M	1.48B
Total Liabilities	13.09B	12.96B	12.41B	12.02B	10.87B	6.08B
Stockholders Equity	1.45B	1.40B	1.23B	1.17B	1.19B	701.10M
Cash Flow
Free Cash Flow	224.00M	92.80M	85.15M	291.43M	146.33M	58.98M
Operating Cash Flow	229.59M	99.06M	90.87M	295.17M	146.33M	59.93M
Investing Cash Flow	129.91M	64.13M	-214.05M	-1.33B	1.10B	-324.38M
Financing Cash Flow	729.49M	662.84M	411.42M	812.59M	-1.10B	352.57M

Dime Community Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 35.36 is above the 20-day moving average (MA) of 31.55, above the 50-day MA of 30.44, and above the 200-day MA of 28.20, indicating a bullish trend. The MACD of 1.18 indicates Negative momentum. The RSI at 75.15 is Negative, neither overbought nor oversold. The STOCH value of 86.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DCOM.

Dime Community Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QCRH	79 Outperform	$1.52B	12.05	11.80%	0.28%	-2.42%	3.83%
RBCAA	75 Outperform	$1.26B	10.92	12.35%	2.57%	5.21%	24.51%
DCOM	74 Outperform	$1.49B	14.42	4.23%	3.14%	-1.79%	-23.87%
CNOB	72 Outperform	$1.34B	16.33	5.71%	2.68%	15.55%	-28.10%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PFBC	67 Neutral	$1.15B	8.24	16.91%	2.99%	-3.05%	-0.51%
BBT	65 Neutral	$2.38B	27.52	3.23%	3.21%	21.37%	17.19%

Dime Community Bancshares Corporate Events

Dime Community Bancshares Announces Debt Redemption and Buybacks

On January 26, 2026, Dime Community Bancshares, Inc. announced plans to redeem at par on March 30, 2026, all $40 million of its Fixed/Floating Subordinated Debentures due 2030, a move it expects to fund with cash on hand and that should be accretive to earnings per share, underscoring the bank’s strong capital and liquidity position. The board also reauthorized the company’s share repurchase program for up to 1,566,947 remaining common shares, giving management additional flexibility to deploy capital, although any buybacks will depend on market conditions and regulatory considerations and may not be completed in full, highlighting a balanced approach to capital returns while supporting organic growth.

The most recent analyst rating on (DCOM) stock is a Hold with a $36.00 price target. To see the full list of analyst forecasts on Dime Community Bancshares stock, see the DCOM Stock Forecast page.

Dime Community Bancshares Declares Quarterly Preferred Stock Dividend

On January 22, 2026, Dime Community Bancshares, Inc. 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, payable on February 13, 2026, to shareholders of record as of February 6, 2026. The move underscores the company’s ongoing capital return to preferred shareholders and reflects continued support for its existing capital structure within the competitive community banking market on Greater Long Island.

The most recent analyst rating on (DCOM) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Dime Community Bancshares stock, see the DCOM Stock Forecast page.

Dime Community Bancshares Announces Quarterly Dividend

On December 17, 2025, Dime Community Bancshares, Inc. declared a quarterly cash dividend of $0.25 per common share, continuing its uninterrupted dividend tradition. This dividend, payable on January 23, 2026 to shareholders of record as of January 16, 2026, underscores the company’s commitment to providing consistent value to its stakeholders and maintaining its leadership in community banking.

The most recent analyst rating on (DCOM) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on Dime Community Bancshares stock, see the DCOM Stock Forecast page.

Dime Community Bancshares Releases Investor Presentation

On November 10, 2025, Dime Community Bancshares, Inc. released a financial presentation to investors, which is accessible on their website. This disclosure is informational and not considered filed under the Securities Exchange Act of 1934, nor incorporated by reference in any securities filings, unless specifically stated.

The most recent analyst rating on (DCOM) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Dime Community Bancshares stock, see the DCOM Stock Forecast page.

Dime Community Bancshares Announces Executive Succession Plan

On October 27, 2025, Dime Community Bancshares announced a senior executive succession plan as part of its strategic growth initiatives. Conrad Gunther will retire at the end of the year, with Thomas X. Geisel taking over as Chief Commercial Officer, and Avi Reddy, currently the CFO, assuming the additional role of Chief Operating Officer. This transition aims to sustain the company’s growth trajectory and strengthen its management team.

The most recent analyst rating on (DCOM) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Dime Community Bancshares stock, see the DCOM Stock Forecast page.