Dime community bancshares sees $928,000 stock purchase by Basswood Capital

Basswood Capital Management, L.L.C., along with its managing members Matthew Lindenbaum and Bennett Lindenbaum, has increased its stake in Dime Community Bancshares, Inc. (NASDAQ:). The firm purchased 29,000 shares of the company's common stock at a price of $32 per share, amounting to a total investment of $928,000. This acquisition brings their total holdings to 1,044,221 shares. The transaction was disclosed in a recent SEC filing, highlighting Basswood Capital's continued interest in the Hauppauge, New York-based bank holding company.

In other recent news, Dime Community Bancshares has announced the pricing of its public stock offering at $32.00 per share, aiming to raise approximately $125 million. The proceeds are expected to support the company's organic growth and potential balance sheet optimization strategies. The transaction is managed by Raymond (NS:) James & Associates, Inc. and Keefe, Bruyette & Woods, Inc.

Simultaneously, 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 has 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.

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. These are among the recent developments at Dime Community Bancshares.

InvestingPro Insights

Basswood Capital Management's increased stake in Dime Community Bancshares, Inc. (NASDAQ:DCOM) aligns with several positive indicators highlighted by InvestingPro. The bank's stock has shown remarkable strength, with InvestingPro data revealing a 73.78% price total return over the past six months and a 66.51% return over the last year. This performance supports the InvestingPro Tip noting DCOM's "High return over the last year" and "Strong return over the last three months."

Despite these gains, DCOM's P/E ratio stands at 22.56, suggesting the stock may still have room for growth, especially considering its price is currently at 96.08% of its 52-week high. Additionally, the company's commitment to shareholder value is evident in its dividend history, with an InvestingPro Tip highlighting that DCOM "Has maintained dividend payments for 28 consecutive years." The current dividend yield of 2.95% may be an attractive feature for income-focused investors like Basswood Capital.

It's worth noting that InvestingPro offers 10 additional tips for DCOM, providing a more comprehensive analysis for investors considering following Basswood Capital's move. These insights could be particularly valuable given the mixed signals, such as the expected drop in net income this year, balanced against the company's profitability over the last twelve months.

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