| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 145.37 | 401 |
| Intrinsic value (DCF) | 0.20 | -99 |
| Graham-Dodd Method | 18.14 | -37 |
| Graham Formula | 66.24 | 128 |
Dime Community Bancshares, Inc. (NASDAQ: DCOM) is a regional bank holding company operating through its subsidiary, Dime Community Bank, primarily serving businesses, consumers, and municipalities in the New York metropolitan area. Founded in 1910 and headquartered in Hauppauge, New York, the bank offers a comprehensive suite of financial services, including commercial real estate loans, multi-family mortgages, residential loans, and deposit products. With a strong presence across Long Island and New York City boroughs (Brooklyn, Queens, Manhattan, and the Bronx), Dime Community Bancshares leverages its deep regional expertise to serve a diverse customer base. The bank also provides cash management, online banking, investment services, and title insurance brokerage. As of December 2021, it operated 60 branches, reinforcing its commitment to community-focused banking. With a market capitalization of approximately $1.1 billion, DCOM remains a key player in the competitive Northeast regional banking sector.
Dime Community Bancshares presents a mixed investment profile. On the positive side, its strong regional presence in New York’s commercial real estate and multi-family lending markets provides a stable revenue base. The bank’s diversified loan portfolio and solid deposit franchise mitigate some risks. However, its beta of 1.07 suggests higher volatility compared to the broader market, and net income of $29 million (FY 2021) reflects modest profitability. The dividend yield (~3.5% based on a $1 annual dividend) may appeal to income-focused investors, but rising interest rates could pressure loan demand and deposit costs. Investors should weigh its regional strengths against macroeconomic risks, including potential commercial real estate exposure in a post-pandemic environment.
Dime Community Bancshares competes in the crowded Northeast regional banking sector, where its primary advantage lies in its hyper-localized focus on New York City and Long Island. The bank’s specialization in multi-family and commercial real estate (CRE) lending differentiates it from larger national banks, allowing for deeper client relationships and niche underwriting expertise. However, its scale is a limitation—with $6.5 billion in assets (2021), it lacks the cost efficiencies and digital investment capabilities of mega-regional peers. DCOM’s deposit base is sticky due to its community banking model, but competition from online banks and credit unions poses a growing threat. Its loan portfolio is heavily weighted toward CRE (~70% of total loans), which could be a vulnerability if urban property values soften. While the bank’s capital ratios remain adequate, its net interest margin (NIM) faces pressure in a rising-rate environment. Strategic focus on middle-market businesses and local municipalities provides stability, but growth prospects are constrained by geographic concentration.