Moody’s Assigns First-Time “A3” Deposit Ratings to Dime Community Bank

Rhea-AI Summary

Dime Community Bancshares (NASDAQ: DCOM) has received its first ratings from Moody’s Investors Service. The Bank received a long-term deposit rating of A3, while the Company earned a long-term issuer rating of Baa3. Both ratings carry a Stable outlook. Moody's praised Dime's strong credit quality, operating efficiency, and disciplined lending practices. CEO Kevin O'Connor expressed pride in the investment-grade rating, emphasizing the Company's solid financial performance and franchise value. Dime Community Bank holds over $12 billion in assets.

Positive

• Moody's assigned a long-term deposit rating of A3 to the Bank.
• The Company received a long-term issuer rating of Baa3, indicating investment-grade quality.
• Moody's outlook for both ratings is Stable, suggesting financial stability.
• Dime has an excellent track record of credit quality and strong operating efficiency.
• The Bank is the number one deposit market share holder among community banks in Greater Long Island.

Negative

• None.

HAUPPAUGE, N.Y., April 21, 2022 (GLOBE NEWSWIRE) -- Dime Community Bancshares, Inc. (the “Company” or “Dime”) (NASDAQ: DCOM), the parent company of Dime Community Bank (the “Bank”), announced that Moody’s Investors Service (“Moody’s”), in a report dated April 21, 2022, has assigned first time ratings to Dime and the Bank. Moody’s assigned the Bank a long-and-term deposit rating of “A3”. In addition, Moody’s assigned the Company a long-term issuer rating of “Baa3”. The ratings outlook is “Stable”.

According to the Moody’s report, the ratings reflect Dime’s excellent credit quality track record, strong operating efficiency, low-cost locally-sourced deposit base, good liquidity and clear strategy. Moody’s also noted that with respect to its long-run performance, Dime has routinely reported annual net charge-offs to average loans that were consistently better than average for all FDIC-insured banks. Moody’s believes that Dime’s underwriting standards are strong and that it will remain a disciplined lender, with a focus on directly-originated loans serving clients within its core market in Greater Long Island.

Kevin O’ Connor, Chief Executive Officer, stated, “Moody’s has recognized our long-term track record, financial performance and franchise value. We are pleased to receive an investment grade rating with a Stable Outlook.”

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 $12.0 billion in assets and the 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 with less than $20 billion in assets.

FAQ

What ratings did Moody's assign to Dime Community Bancshares on April 21, 2022?

Moody's assigned a long-term deposit rating of A3 to Dime Community Bank and a long-term issuer rating of Baa3 to Dime Community Bancshares.

What is the outlook rating given by Moody's to Dime Community Bancshares?

Moody's assigned a Stable outlook to both the long-term deposit rating and the long-term issuer rating.

What factors contributed to Moody's ratings for Dime Community Bancshares?

Moody's ratings were based on Dime's strong credit quality track record, operating efficiency, disciplined lending practices, and good liquidity.

How much in assets does Dime Community Bank hold?

Dime Community Bank holds over $12 billion in assets.

Why is the Moody's rating significant for Dime Community Bancshares?

The Moody's rating is significant as it reflects investment-grade quality, which can enhance investor confidence and access to capital.