Dime Commercial Bancshares Shares Rise on Strong Earnings and Acquisition
On Tuesday, Dime Commercial Bancshares (DCOM) saw its stock rise by nearly 6%, outperforming the S&P 500's modest gain of 0.3%. The increase was driven by strong third-quarter earnings results and an announced acquisition deal. The company reported a significant jump in revenue to over $135 million, up 19% year-over-year, along with non-GAAP net income rising almost 50% to $39.1 million ($0.91 per share). Despite a slight decline in loans, deposits increased by 7%, and the company highlighted its strong liquidity position as an advantage during high-interest rate environments. Dime also announced plans to acquire ES Bancshares for approximately $58 million using cash and stock. The acquisition is expected to expand Dime's presence in Brooklyn and Staten Island at a low valuation of about 1.1 times tangible book value per share.
Topics: acquisition banking revenue growth
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