Dime Community Bancshares Announces Closing of Common Stock Offering

Rhea-AI Summary

Dime Community Bancshares (Nasdaq: DCOM) has successfully closed its public offering of 4,492,187 shares of common stock at $32.00 per share, including 585,937 additional shares from the underwriters' fully exercised option. The offering generated gross proceeds of approximately $144 million, with net proceeds of $136 million after underwriting discounts. The company plans to use the proceeds for general corporate purposes, including working capital, investments in its bank subsidiary, and potential balance sheet optimization strategies. Raymond James & Associates and Keefe, Bruyette & Woods served as joint book-running managers for the offering.

Positive

• Successfully raised $136 million in net proceeds to support organic growth
• Full exercise of underwriters' option indicates strong demand for the offering
• Strengthened capital position for potential business expansion and investments

Negative

• Potential dilution of existing shareholders due to issuance of 4.49 million new shares
• Share offering increases outstanding shares by significant amount, potentially impacting EPS

Insights

Financial Analyst

The successful completion of DCOM's $144 million common stock offering, priced at $32.00 per share, represents a significant capital raise that strengthens the bank's financial position. The full exercise of the underwriters' option to purchase additional shares indicates strong market demand. With net proceeds of approximately $136 million, this capital injection provides substantial flexibility for organic growth initiatives and balance sheet optimization.

The offering's timing and execution suggest proactive capital management, positioning DCOM to capitalize on growth opportunities in its market. The involvement of prominent underwriters Raymond James and KBW adds credibility to the transaction. While the stock issuance will result in some dilution for existing shareholders, the additional capital buffer enhances the bank's ability to pursue strategic initiatives and maintain regulatory capital requirements.

HAUPPAUGE, N.Y., Nov. 13, 2024 (GLOBE NEWSWIRE) -- Dime Community Bancshares, Inc. (Nasdaq: DCOM) (“Dime” or the “Company”), the parent company of Dime Community Bank, announced the closing of its public offering of 4,492,187 shares of its common stock, $0.01 par value (the “Common Stock”), at a public offering price of $32.00 per share, which included 585,937 shares issued upon the exercise in full by the underwriters of their option to purchase additional shares of common stock. The total gross proceeds from the offering were approximately $144 million. The Company received net proceeds from the offering of approximately $136 million, after deducting underwriting discounts and before deducting transaction expenses.

Dime expects to use the net proceeds from this offering for general corporate purposes to support its continued organic growth, which may include, among other things, working capital, investments in its bank subsidiary, and potential balance sheet optimization strategies.

Raymond James & Associates, Inc. and Keefe, Bruyette & Woods, Inc., A Stifel Company, are acting as joint book-running managers for the offering. Luse Gorman, PC is serving as legal counsel to the joint book-running managers. Squire Patton Boggs LLP is serving as legal counsel to Dime.

The offering to which this communication relates was made by means of a prospectus supplement and accompanying base prospectus. The Company has filed a registration statement on Form S-3 (File No. 333-264390), a preliminary prospectus supplement and a final prospectus supplement to the base prospectus contained in the registration statement with the U.S. Securities and Exchange Commission (the “SEC”) for the shares of common stock to which this communication relates. Copies of the prospectus supplement and the accompanying base prospectus relating to the Common Stock offering can be obtained without charge by visiting the SEC’s website at www.sec.gov, or by emailing Raymond James & Associates, Inc. at prospectus@raymondjames.com or by emailing Keefe, Bruyette & Woods, A Stifel Company, at SyndProspectus@stifel.com.

This press release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of the securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any offering of the Common Stock is being made only by means of a written prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. The securities being offered have not been approved or disapproved by any regulatory authority, nor has any such authority passed upon the accuracy or adequacy of the prospectus supplement or the shelf registration statement or prospectus relating thereto.

ABOUT DIME COMMUNITY BANCSHARES, INC.

Dime Community Bancshares, Inc. is the holding company for Dime Community Bank, a New York State-chartered trust company with over $13.7 billion in assets and the number one deposit market share among community banks on Greater Long Island ⁽¹⁾.

 ⁽¹⁾ Aggregate deposit market share for Kings, Queens, Nassau & Suffolk counties for community banks with less than $20 billion in assets.

Forward-Looking Statements

This press release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements may be identified by use of words such as “anticipate,” “believe,” “continue,” “could,” “expect,” “may,” “potential,” “should,” “will,” “to be,” “would” and similar terms and phrases, including references to assumptions.

Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management’s experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors (many of which are beyond the Company’s control) that could cause actual conditions or results to differ materially from those expressed or implied by such forward-looking statements. Accordingly, you should not place undue reliance on such statements. Factors that could affect our results include, without limitation, the following: increases in competitive pressure among financial institutions or from non-financial institutions; inflation and fluctuation in market interest rates, which may affect demand for our products, interest margins and the fair value of financial instruments; changes in deposit flows or composition, loan demand or real estate values; changes in the quality and composition of the Company’s loan or investment portfolios or unanticipated or significant increases in loan losses; changes in accounting principles, policies or guidelines; changes in corporate and/or individual income tax laws or policies; general socio-economic conditions or events, including conditions caused by public health emergencies, international conflict, inflation, and recessionary pressures, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry; legislation, regulatory or policy changes; technological changes; failures or breaches of information technology security systems; success or consummation of new business initiatives or the integration of an acquired entities may be more difficult or expensive than the Company anticipates; and litigation or other matters before regulatory agencies.

For discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections entitled “Forward-Looking Statements” and “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and subsequent updates set forth in the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Dime Community Bancshares, Inc.
Investor Relations Contact:
Avinash Reddy
Senior Executive Vice President – Chief Financial Officer
Phone: 718-782-6200; Ext. 5909
Email: avinash.reddy@dime.com

FAQ

How much did Dime Community Bancshares (DCOM) raise in its recent stock offering?

Dime Community Bancshares raised approximately $144 million in gross proceeds and $136 million in net proceeds after underwriting discounts.

What was the price per share for DCOM's 2024 stock offering?

The public offering price was $32.00 per share.

How many shares did DCOM issue in its November 2024 offering?

DCOM issued 4,492,187 shares in total, including 585,937 shares from the fully exercised underwriters' option.

What will DCOM use the stock offering proceeds for?

DCOM plans to use the proceeds for general corporate purposes, including working capital, investments in its bank subsidiary, and potential balance sheet optimization strategies.