Dime Community Bancshares, Inc. Announces Completion of Subordinated Notes Offering

Rhea-AI Summary

Dime Community Bancshares (NASDAQ: DCOM) has successfully completed a public offering of $160 million in subordinated notes with a fixed-to-floating rate due in 2032. The offering was sold at par, yielding approximately $158 million in net proceeds post-expenses. Funds will be allocated for general corporate purposes, including repaying existing subordinated debt. The notes qualify as Tier 2 capital, strengthening the company's financial position.

Positive

• Successful public offering of $160 million in 5.000% subordinated notes.
• Net proceeds of approximately $158 million will be used for corporate purposes.
• Notes qualify as Tier 2 capital, enhancing regulatory capital position.

Negative

• None.

HAUPPAUGE, N.Y., May 06, 2022 (GLOBE NEWSWIRE) -- Dime Community Bancshares, Inc. (NASDAQ: “DCOM”), (the “Company”), announced today the completion of its public offering and sale of $160 million of its 5.000% fixed-to-floating rate subordinated notes due 2032 (the “Notes”). The Notes were sold at par, resulting in net proceeds, after discounts and estimated offering expenses, of approximately $158 million.

The Company intends to use the net proceeds of the offering for general corporate purposes, which include repayment of the outstanding principal amount of the Company’s outstanding subordinated notes and subordinated debentures. The Notes are intended to qualify as Tier 2 capital for regulatory purposes.

Piper Sandler & Co. acted as the active book-running manager for the offering. Keefe, Bruyette, & Woods, Inc. and Raymond James Financial, Inc. acted as passive book-running managers for the offering. Luse Gorman, PC acted as legal counsel to the Company and Holland & Knight, LLP acted as legal counsel to the underwriters.

This press release is neither an offer to sell nor a solicitation of an offer to purchase any securities of the Company. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About the Company

Dime Community Bancshares, Inc. is the holding company for Dime Community Bank, a New York State-chartered trust company with over $12.0 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 less than $20 billion in assets.

Forward-Looking Statements

This news 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," "estimate," "expect," "intend," “likely,” "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "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 results to differ materially from future results 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: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company’s control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may reduce interest margins; changes in deposit flows, loan demand or real estate values may adversely affect the business of the Company; unanticipated or significant increases in loan losses may negatively affect the Company’s financial condition or results of operations; changes in accounting principles, policies or guidelines may cause the Company’s financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company's financial condition or results of operations; general economic conditions, 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 may be less favorable than the Company currently anticipates; legislation or regulatory changes may adversely affect the Company’s business; technological changes may be more difficult or expensive than the Company anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; and litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates. Further, given its ongoing and dynamic nature, it is difficult to predict what effects the COVID-19 pandemic will have on our business and results of operations. The pandemic and related local and national economic disruption may, among other effects, result in a decline in demand for our products and services; increased levels of loan delinquencies, problem assets and foreclosures; branch closures, work stoppages and unavailability of personnel; and increased cybersecurity risks, as employees work remotely.

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 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

What are the details of Dime Community Bancshares' recent public offering?

Dime Community Bancshares completed a public offering of $160 million in subordinated notes, netting approximately $158 million after expenses.

How will Dime Community Bancshares use the proceeds from the offering?

The proceeds will be used for general corporate purposes, including repayment of existing subordinated debt.

What is the significance of the subordinated notes for Dime Community Bancshares?

The subordinated notes qualify as Tier 2 capital, which is important for regulatory capital requirements.

When do the subordinated notes mature?

The subordinated notes are due in 2032.

What financial institution managed the subordinated notes offering?

Piper Sandler & Co. acted as the active book-running manager for the offering.