HAUPPAUGE, N.Y. - Dime Community Bancshares, Inc. (NASDAQ: NASDAQ:DCOM), the parent company of Dime Community Bank, announced today the pricing of a $65 million public offering of subordinated notes. The notes, due in 2034, carry a 9.000% fixed-to-floating interest rate. The company has also provided underwriters a 30-day option to purchase up to an additional $9.75 million in notes to cover over-allotments.
Interest on these notes will be paid quarterly in arrears at a fixed rate until July 15, 2029. Subsequently, the rate will adjust quarterly to a floating rate based on the Three-Month Term SOFR plus a spread of 495.1 basis points. The company reserves the right to redeem the notes, in whole or in part, after July 15, 2029, at par value plus accrued interest.
The transaction is expected to close around June 28, 2024, subject to customary closing conditions. The notes are designed to qualify as Tier 2 capital, which is supplementary capital under regulatory guidelines. Dime Community Bancshares plans to list the notes on the Nasdaq Stock Market under the symbol "DCOMG" within 30 days of the issue date.
Proceeds from the offering are intended for general corporate purposes, which include supporting organic growth and maintaining regulatory capital ratios. Raymond James & Associates, Inc. and Keefe, Bruyette & Woods, A Stifel Company are serving as joint book-running managers. Co-managers include D.A. Davidson & Co. and Piper Sandler.
Dime Community Bancshares, a New York State-chartered trust company, reported over $13.5 billion in assets and holds the top deposit market share among community banks on Greater Long Island for banks with assets under $20 billion.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities. The offering is made only by means of a prospectus supplement and accompanying prospectus filed with the U.S. Securities and Exchange Commission (SEC). Prospective investors are advised to read these documents available on the SEC's website for further information about the company and the offering.
The information reported is based on a press release statement.
InvestingPro Insights
Dime Community Bancshares, Inc. (NASDAQ: DCOM) has recently announced a substantial public offering of subordinated notes, aiming to strengthen its capital structure and support its growth initiatives. As investors consider the potential of DCOM's latest financial move, it's valuable to look at some key metrics and insights from InvestingPro.
According to InvestingPro Data, Dime Community Bancshares currently has a market capitalization of $749.78 million and a Price/Earnings (P/E) ratio of 10.79, which is adjusted to 10.13 for the last twelve months as of Q1 2024. These figures suggest a valuation that could be appealing to value-oriented investors, especially when considering the company's consistent history of dividend payments over the past 28 years.
InvestingPro Tips indicate that while the company's net income is expected to drop this year, analysts remain optimistic about its profitability. Moreover, despite a significant 30.03% drop in the price total return over the past six months, Dime Community Bancshares has maintained a healthy dividend yield of 5.3% as of the latest data, which may interest income-focused shareholders.
For those looking to dive deeper into the financial health and future prospects of Dime Community Bancshares, there are additional InvestingPro Tips available. These can provide a more comprehensive understanding of the company's performance and potential. Interested investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to an expanded list of insights and analytics that can inform investment decisions.
With the company's next earnings date scheduled for July 26, 2024, and with an analyst-targeted fair value of $25, compared to the current price of $18.87, the forthcoming period will be crucial for investors monitoring DCOM's performance and the impact of its strategic financial maneuvers.
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