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

Rhea-AI Summary

On February 9, 2021, Dime Community Bancshares, Inc. (NASDAQ: DCOM) announced that Fitch Ratings affirmed its investment grade ratings for the Company and Dime Community Bank. The Fitch report highlighted the Company’s stable performance amid COVID-19 and its merger of equals. Fitch noted that benefits from the merger, including diversification and scale, outweigh integration risks, and observed a significant decline in loan payment deferrals from Q2 2020.

Positive

• Fitch Ratings affirmed investment grade ratings for DCOM, indicating financial stability.
• The merger of equals is expected to provide diversification and funding benefits, enhancing overall resilience.
• Notable decline in loan payment deferrals compared to Q2 2020 levels, suggesting improved borrower performance.

Negative

• None.

HAUPPAUGE, N.Y., Feb. 09, 2021 (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 February 5, 2021, affirmed its investment grade ratings for the Company and the Bank.

According to the Fitch report, the Company has, to date, performed reasonably well while simultaneously managing the challenges of the coronavirus and its merger of equals transaction. Fitch continues to believe that the diversification and funding benefits from the merger of equals, as well as greater scale, moderately outweigh the integration risk associated with such merger of equals. Fitch also noted that loan payment deferrals have declined notably from 2Q 2020 levels.

Kevin O’ Connor, Chief Executive Officer, stated, “We are pleased to receive an affirmation of our investment grade rating from Fitch Ratings.”

About Dime Community Bancshares, Inc.

Dime Community Bancshares, Inc. (Nasdaq: DCOM) is the holding company for Dime Community Bank, a New York State-chartered trust company with over $12 billion in assets and number one deposit market share among community banks on Greater Long Island⁽¹⁾.

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

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

FAQ

What did the Fitch Ratings report state about DCOM on February 5, 2021?

The Fitch Ratings report affirmed investment grade ratings for DCOM and indicated stable performance amid challenges.

How has DCOM managed challenges during the coronavirus pandemic?

DCOM has performed reasonably well while managing challenges related to COVID-19 and its merger.

What financial benefits does the merger of equals provide for DCOM?

The merger offers diversification and funding benefits, which may outweigh integration risks.

How have loan payment deferrals changed for DCOM since Q2 2020?

Loan payment deferrals have significantly declined compared to the levels seen in Q2 2020.