Fitch Ratings Affirms Dime Community Bancshares, Inc.’s Ratings at “BBB”

Rhea-AI Summary

Dime Community Bancshares (NASDAQ: DCOM) announced that Fitch Ratings affirmed its investment grade ratings following the merger of equals transaction with Bridge Bancorp (NASDAQ: BDGE). The Fitch report highlighted that the strategic benefits from the merger, such as diversification and enhanced funding capabilities, outweigh customary integration risks. With a strong emphasis on relationship lending to small businesses, the merger aims to bolster Dime's balance sheet. As of March 31, 2020, Dime had $6.35 billion in consolidated assets.

Positive

• Fitch Ratings affirmed investment grade ratings for DCOM and the Bank.
• The merger with Bridge Bancorp is seen to enhance diversification and funding capabilities.
• Expansion of relationship lending capabilities to small businesses is a strategic advantage.

Negative

• Integration risks associated with the merger could impact operational efficiency.

BROOKLYN, N.Y., July 07, 2020 (GLOBE NEWSWIRE) -- Dime Community Bancshares, Inc. (the “Company” or “Dime”) (NASDAQ: DCOM), the parent company of Dime Community Bank (the “Bank”), announced that Fitch Ratings (“Fitch”), in a report dated July 6, 2020, affirmed its investment grade ratings for the Company and the Bank following the announcement of the merger of equals transaction with Bridge Bancorp, Inc. (NASDAQ: BDGE).

According to the Fitch report, the strategic rationale along with the diversification and funding benefits associated with the transaction modestly outweighed the integration risks that are customary in merger of equals transactions. Assuming successful execution, it is Fitch’s view that the transaction would accelerate Dime's previously communicated strategic goals of diversifying its balance sheet and expanding relationship lending capabilities to small businesses and lower middle-market companies within adjacent markets. In light of the similarity of business models as well as overlap in systems and processes, Fitch viewed the integration risk as manageable within the context of the current ratings.

Kenneth J. Mahon, Chief Executive Officer, stated, “We are pleased to continue to receive an investment grade rating from Fitch Ratings.”

ABOUT DIME COMMUNITY BANCSHARES, INC.

The Company had $6.35 billion in consolidated assets as of March 31, 2020. The Bank was founded in 1864, is headquartered in Brooklyn, New York, and currently has 28 retail branches located throughout Brooklyn, Queens, the Bronx, Nassau and Suffolk Counties, New York. More information on the Company and the Bank can be found on Dime's website at 02%7C01%7Cjmccaffery%40bnbbank.com%7Ccb963dc2adf64f7fce3908d822a2fa2b%7Cd94c2cbcfe63421ca61e96b6477bb794%7C1%7C0%7C637297430669678571&sdata=luXl%2Fdcv%2BY5oAG0hune413RDvfJahbcKVaZ6mIEQplQ%3D&reserved=0" rel="nofollow" target="_blank" title="">www.dime.com.

Avinash Reddy
Senior Executive Vice President – Chief Financial Officer
718-782-6200 extension 5909

FAQ

What did Fitch Ratings say about Dime Community Bancshares on July 6, 2020?

Fitch Ratings affirmed the investment grade ratings for Dime Community Bancshares following their merger with Bridge Bancorp.

What are the benefits of the merger for Dime Community Bancshares?

The merger is expected to enhance diversification, improve funding capabilities, and expand relationship lending to small businesses.

What are the financial metrics of Dime Community Bancshares?

As of March 31, 2020, Dime Community Bancshares had $6.35 billion in consolidated assets.

What merger is Dime Community Bancshares involved in?

Dime Community Bancshares is engaged in a merger of equals with Bridge Bancorp.

What integration risks are associated with the merger of Dime Community Bancshares?

The integration risks are viewed as manageable, but they could impact operational efficiency.