Dime Community Bancshares Boosts Ratings Outlook to Positive
Dime Community Bancshares Sees Positive Outlook Change
Dime Community Bancshares, Inc. (the "Company" or "Dime") (NASDAQ: DCOM), the parent company of Dime Community Bank, recently received an exciting update from Kroll Bond Rating Agency (KBRA). In a report, KBRA revised its ratings outlook from "Stable" to "Positive." This change reflects Dime’s impressive strategic execution, especially in light of the disruptions experienced in the banking industry.
Strategic Growth Initiatives Yield Positive Results
The positive rating outlook highlights the Company’s successful efforts to capitalize on market changes following area bank failures. Dime has effectively onboarded deposit-focused teams, resulting in a significant enhancement to its liquidity and funding dynamics. Currently, Dime is exceeding the performance of its peers across several essential metrics.
In the last two years, Dime has grown its core deposits by $2 billion, bolstered by a healthy mix of demand deposits. This has allowed the institution to maintain lower deposit costs compared to many KBRA-rated competitors. Furthermore, the surge in liquidity has contributed to a notable decrease in reliance on wholesale funding while boosting loan diversification efforts.
Strong Credit Quality Enhances Ratings
KBRA's report also emphasizes the consistent credit quality exhibited by Dime Community Bancshares throughout various economic cycles. Since the global financial crisis, the Company has maintained an average net charge-off (NCO) ratio of just 15 basis points, which showcases its disciplined credit culture. Currently, Dime reports very few problem loans, indicating well-managed non-performing assets and improving risk ratings.
Leadership Comments on Outlook Revision
The Company’s President and CEO, Stuart H. Lubow, expressed enthusiasm about the recent rating modification. He stated, "KBRA has recognized the progress we have made in creating a high-quality balance sheet. As we continue to execute on our growth plan, we are pleased to see our ratings outlook revised to Positive." This forward momentum is indicative of Dime's commitment to maintaining robust financial health and fostering growth.
About Dime Community Bancshares, Inc.
Dime Community Bancshares, Inc. serves as the holding entity for Dime Community Bank, which is a New York State-chartered trust company. Boasting over $14 billion in assets, Dime is proud to hold the top deposit market share amongst community banks on Greater Long Island.
Contact Information
If you are interested in learning more about Dime Community Bancshares, contact the Investor Relations team. Avinash Reddy, Senior Executive Vice President and Chief Financial Officer, can be reached at 718-782-6200; Ext. 5909 or via email at avinash.reddy@dime.com.
Frequently Asked Questions
What does the revised outlook from KBRA mean for Dime?
The revised outlook indicates a positive expectation for Dime's future performance, as recognized by KBRA based on the Company’s strategic initiatives.
How has Dime Community Bancshares grown recently?
Dime has increased its core deposits by $2 billion over the past two years, enhancing its financial stability and market position.
What is the significance of the Company’s credit quality?
Dime’s strong credit quality, evidenced by a low NCO ratio, enhances its reputation and reliability as a financial institution.
Who can I contact for more information about Dime Community Bancshares?
For inquiries, reach out to Avinash Reddy, the CFO, through the provided contact information.
What are the key metrics Dime is outperforming?
Dime is currently surpassing its peers in various financial metrics, particularly in its deposit acquisition and cost management strategies.
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