HAUPPAUGE, N.Y. - Dime Community Bancshares, Inc. (NASDAQ: NASDAQ:DCOM), the parent company of Dime Community Bank, has announced the pricing of its public offering at $32.00 per share. The offering consists of 3,906,250 shares of common stock, aiming to raise aggregate gross proceeds of approximately $125 million. The company has also provided the underwriters a 30-day option to purchase up to an additional 585,937 shares.
The transaction is expected to close on or about November 13, 2024, subject to customary closing conditions. Dime indicated that the net proceeds would be used for general corporate purposes to support its continued organic growth. This may include working capital, investments in its bank subsidiary, and potential balance sheet optimization strategies.
Raymond (NS:RYMD) James & Associates, Inc. and Keefe, Bruyette & Woods, Inc., A Stifel Company, are acting as joint book-running managers for the offering. Legal counsel is provided by Luse Gorman, PC for the joint book-running managers, and Squire Patton Boggs LLP for Dime.
The offering is being made pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission (SEC), including a preliminary prospectus supplement and a final prospectus supplement to be filed with the SEC. Prospective investors are encouraged to read these documents for a more complete understanding of the company and the offering.
Dime Community Bancshares, Inc. is a leading financial institution with over $13.7 billion in assets and a significant deposit market share among community banks on Greater Long Island. The offering of the common stock is subject to a written prospectus that meets the requirements of Section 10 of the Securities Act of 1933, as amended.
The securities have not been approved or disapproved by any regulatory authority, nor have they passed upon the accuracy or adequacy of the prospectus supplement or the registration statement.
This report is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. These include changes in market conditions, competitive pressures, and regulatory changes, among others, which could affect the company's actual results.
In other recent news, Dime Community Bancshares has exhibited robust growth in the third quarter, with a significant increase in core deposits and business loans. The company's net interest margin (NIM) has also seen a notable rise, with expectations to exceed 3% in the near term. Despite an uptick in non-interest expenses, which reached $57.4 million, and loan loss provisions amounting to $11.6 million, the company remains optimistic.
The bank's total capital stands at 14.8%, with a common equity Tier 1 ratio of 10.2%. Dime Community Bancshares has plans to reduce the multifamily loan percentage from 37% to between 25% and 30% over time, while it anticipates continued growth in deposits and expects loan originations to reach approximately $11 billion by year's end.
In addition to these financial results, the company has made significant amendments to its corporate governance structure, changing how directors are elected during uncontested and contested elections. This move is part of Dime Community Bancshares' ongoing efforts to align its corporate governance with best practices and ensure a fair and transparent electoral process for its Board of Directors. These are among the recent developments at Dime Community Bancshares.
InvestingPro Insights
Dime Community Bancshares' recent public offering aligns with its strong market performance and financial stability. According to InvestingPro data, the company's market capitalization stands at $1.35 billion, reflecting its significant presence in the banking sector. The stock's recent performance has been particularly noteworthy, with a 57.97% price total return over the past three months and an impressive 84.98% return over the last year.
These robust returns are complemented by InvestingPro Tips that highlight DCOM's financial strength. The company has maintained dividend payments for 28 consecutive years, demonstrating a commitment to shareholder value that may appeal to investors considering the new share offering. Additionally, DCOM is trading near its 52-week high, with the current price at 97.78% of its peak, indicating strong market confidence.
However, potential investors should note that three analysts have revised their earnings downwards for the upcoming period, and net income is expected to drop this year. This information could be relevant to those evaluating the $32.00 per share offering price.
For a more comprehensive analysis, InvestingPro offers 11 additional tips on DCOM, providing valuable insights for investors considering this opportunity.
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