Kroll Bond Rating Agency Affirms Ratings for Dime Community Bancshares, Inc.
Kroll Bond Rating Agency (KBRA) has affirmed all ratings for Dime Community Bancshares, Inc. (NASDAQ: DCOM) and its subsidiary, Dime Community Bank. The Bank's senior unsecured debt rating remains at BBB+ and the Company's at BBB, with a stable outlook for all long-term ratings. This affirmation reflects Dime's successful merger integration, leading market share in Long Island, and a low expense base with noninterest expenses at 1.40% of average assets as of Q1 2023. KBRA noted Dime's minimal negative impact from AOCI on capital ratios, conservative underwriting in its investor CRE portfolio, and low historical credit losses. Additionally, Dime has shown strong performance in a volatile liquidity environment, with core deposits growing and uninsured deposit balances at 28% of total. The company has also added seven new deposit-focused groups in Q2 2023, indicating potential tailwinds for core deposit levels.
Kroll Bond Rating Agency (KBRA) ha confermato tutte le valutazioni per Dime Community Bancshares, Inc. (NASDAQ: DCOM) e la sua filiale, Dime Community Bank. Il rating del debito senior non garantito della Banca rimane a BBB+ e quello dell'azienda a BBB, con un outlook stabile per tutte le valutazioni a lungo termine. Questa conferma riflette il successo dell'integrazione delle fusioni di Dime, una quota di mercato leader a Long Island e una base di spesa bassa, con spese non relative agli interessi al 1,40% delle attivi medi a partire dal Q1 2023. KBRA ha notato il minimo impatto negativo di Dime dall'AOCI sui rapporti di capitale, un'underwriting conservativa nel portafoglio CRE per investitori e basse perdite di credito storiche. Inoltre, Dime ha dimostrato forti performance in un ambiente di liquidità volatile, con depositi core in crescita e saldi di depositi non assicurati al 28% del totale. L'azienda ha anche aggiunto sette nuovi gruppi focalizzati sui depositi nel Q2 2023, indicando potenziali venti favorevoli per i livelli di deposito core.
Kroll Bond Rating Agency (KBRA) ha afirmado todas las calificaciones para Dime Community Bancshares, Inc. (NASDAQ: DCOM) y su subsidiaria, Dime Community Bank. La calificación de la deuda senior no garantizada del banco permanece en BBB+ y la de la compañía en BBB, con perspectivas estables para todas las calificaciones a largo plazo. Esta afirmación refleja la exitosa integración de la fusión de Dime, la participación de mercado líder en Long Island y una baja base de gastos, con gastos no relacionados con intereses del 1.40% de los activos promedio a partir del Q1 2023. KBRA observó el impacto negativo mínimo de Dime del AOCI en los ratios de capital, una suscripción conservadora en su portafolio CRE para inversores y bajas pérdidas crediticias históricas. Además, Dime ha demostrado un sólido rendimiento en un entorno de liquidez volátil, con depósitos centrales en crecimiento y saldos de depósitos no asegurados al 28% del total. La compañía también ha agregado siete nuevos grupos enfocados en depósitos en el Q2 2023, lo que indica vientos favorables potenciales para los niveles de depósitos centrales.
Kroll Bond Rating Agency (KBRA)는 Dime Community Bancshares, Inc. (NASDAQ: DCOM)와 그 자회사인 Dime Community Bank의 모든 신용 등급을 확인했습니다. 은행의 고위험 무담보 부채 등급은 BBB+로 유지되며, 회사의 신용 등급은 BBB로, 모든 장기 등급에 대해 안정적인 전망을 가지고 있습니다. 이러한 확인은 Dime의 성공적인 인수 통합, 롱 아일랜드에서의 높은 시장 점유율, 그리고 Q1 2023 기준으로 평균 자산의 1.40%를 차지하는 낮은 비이자 비용 등의 결과를 반영합니다. KBRA는 자본 비율에 대한 AOCI의 부정적 영향을 최소화하고, 투자자 CRE 포트폴리오에서 보수적인 언더라이팅을 유지하며, 낮은 역사적 신용 손실을 기록했다고 언급했습니다. 또한, Dime은 변동성이 큰 유동성 환경에서 강력한 성과를 보여주었으며, 핵심 예금이 증가하고 무보험 예금 잔액이 총액의 28%에 달합니다. 회사는 또한 2023년 2분기 동안 7개의 신규 예금 중심 그룹을 추가하여 핵심 예금 수준에 대한 잠재적인 긍정적 영향을 나타냅니다.
L'agence de notation Kroll Bond Rating Agency (KBRA) a confirmé toutes les notations pour Dime Community Bancshares, Inc. (NASDAQ: DCOM) et sa filiale, Dime Community Bank. La notation de la dette senior non sécurisée de la Banque reste à BBB+ et celle de la Société à BBB, avec des perspectives stables pour toutes les notations à long terme. Cette affirmation reflète la réussite de l'intégration de fusion de Dime, une part de marché dominante à Long Island et une base de dépenses faibles, avec des dépenses non liées aux intérêts représentant 1,40 % des actifs moyens depuis le premier trimestre 2023. KBRA a noté l'impact négatif minimal du AOCI de Dime sur les ratios de capital, une souscription prudente dans son portefeuille CRE d'investisseurs, et de faibles pertes de crédit historiques. De plus, Dime a montré de bonnes performances dans un environnement de liquidité volatile, avec une augmentation des dépôts de base et un solde des dépôts non assurés représentant 28 % du total. La société a également ajouté sept nouveaux groupes axés sur les dépôts au deuxième trimestre 2023, ce qui indique des vents favorables potentiels pour les niveaux de dépôts de base.
Die Kroll Bond Rating Agency (KBRA) hat alle Rating für Dime Community Bancshares, Inc. (NASDAQ: DCOM) und deren Tochtergesellschaft, Dime Community Bank, bestätigt. Das Rating für die unbesicherte Senior-Anleihe der Bank bleibt bei BBB+ und das der Gesellschaft bei BBB, mit einem stabilen Ausblick für alle langfristigen Bewertungen. Diese Bestätigung spiegelt die erfolgreiche Integration der Fusionen von Dime wider, die führende Marktposition auf Long Island sowie eine niedrige Kostenbasis wider, mit nicht-zinsbezogenen Kosten von 1,40% der durchschnittlichen Vermögenswerte seit dem ersten Quartal 2023. KBRA bemerkte den minimalen negativen Einfluss von Dime’s AOCI auf die Kapitalquoten, eine konservative Kreditvergabe in ihrem CRE-Portfolio für Investoren und niedrige historische Kreditausfälle. Darüber hinaus hat Dime in einem volatilen Liquiditätsumfeld eine starke Leistung gezeigt, mit wachsenden Kern-Einlagen und nicht versicherten Einlagenbeständen von 28% der Gesamtsumme. Das Unternehmen hat auch im zweiten Quartal 2023 sieben neue einlagenorientierte Gruppen hinzugefügt, was auf potenzielle positive Impulse für die Kern-Einlagen-Niveaus hinweist.
- KBRA affirmed Dime's senior unsecured debt rating at BBB+ and the Company's at BBB.
- Stable outlook for all long-term ratings.
- Effective merger integration increased scale and diversification.
- Leading market share in Long Island among local banks.
- Low noninterest expenses at 1.40% of average assets as of Q1 2023.
- Minimal negative impact from AOCI on capital ratios.
- Conservative underwriting in investor CRE portfolio with low historical losses.
- Strong performance in volatile liquidity environment with growing core deposits.
- Uninsured deposit balances are minimal at 28% of total.
- Addition of seven new deposit-focused groups in Q2 2023.
- None.
Outlook For All Long-Term Ratings is “Stable”
HAUPPAUGE, N.Y., June 20, 2023 (GLOBE NEWSWIRE) -- Dime Community Bancshares, Inc. (the “Company” or “Dime”) (NASDAQ: DCOM), the parent company of Dime Community Bank (the “Bank”), announced that Kroll Bond Rating Agency (“KBRA”) has affirmed all ratings of Dime Community Bancshares, Inc. and Dime Community Bank.
KBRA affirmed the Bank’s senior unsecured debt rating of “BBB+” and the Company’s senior unsecured debt rating of “BBB”. The Outlook for all long-term ratings is “Stable”.
According to the KBRA report:
- Dime's ratings are supported by the effective integration of its merger-of-equals transaction which has facilitated the increased scale and diversification of the Company's operating profile, including the leading market share position in Long Island among local banks
- Dime’s cycle- to-date deposit beta has been respectable relative to other local banks
- Dime maintains a very low expense base, with noninterest expenses to average assets of
1.40% as of Q1 2023; over the longer-term, KBRA believes that provides greater upside to the earnings potential in a more normalized interest rate environment - KBRA also recognizes that the negative impact from AOCI has not been overly impactful to Dime's capital ratios, even when including marks on the HTM portfolio, given that Dime maintains a relatively smaller sized securities portfolio
- A substantial portion of the company’s investor CRE portfolio is comprised of rent-regulated multifamily loans throughout NYC that has reflected low loss content historically, which also displays conservative underwriting criteria
- Given that Dime has exhibited among the lowest credit losses through multiple economic cycles, including a cumulative NCO ratio of below 15 basis points since 2007, we believe that similar outperformance on the credit front is certainly possible
- KBRA also favorably views Dime’s strong performance throughout the volatile liquidity environment in Q1 2023, with core deposits growing. Moreover, the Company’s uninsured deposit balances are considered rather minimal at
28% of total when excluding collateralized deposits, and total available liquidity sources are ample, which cover nearly 2x those balances - There are also potential tailwinds for core deposit levels over the next year as Dime has recently added seven new deposit focused groups in Q2 2023, which reflected strong core deposit levels at their prior institutions, notably higher level of non-interest bearing accounts
Kevin O’ Connor, Chief Executive Officer, stated, “We are pleased to receive an affirmation of our investment grade rating from KBRA.”
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
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 with less than
FAQ
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