Dime Announces Intention to Redeem Subordinated Debt and Reauthorization of Share Repurchase Plan

Dime Community Bancshares (NASDAQ:DCOM) announced its intention to redeem at par on March 30, 2026 all outstanding $40,000,000 principal amount of fixed/floating subordinated debentures due 2030.

Rhea-AI Summary

Dime Community Bancshares (NASDAQ:DCOM) announced its intention to redeem at par on March 30, 2026 all outstanding $40,000,000 principal amount of fixed/floating subordinated debentures due 2030. The redemption will be funded with cash on hand and is expected to be accretive to EPS.

Separately, the Board reauthorized the share repurchase program to allow repurchases of up to 1,566,947 outstanding common shares remaining under the existing plan. The company reported a Total Capital Ratio in excess of 16% and said buybacks depend on market conditions and regulatory approvals.

Positive

• Planned redemption of $40,000,000 subordinated debentures
• Redemption funded with cash on hand
• Redemption expected to be accretive to EPS
• Board reauthorized repurchases of up to 1,566,947 shares
• Reported Total Capital Ratio >16%, indicating capital strength

Negative

• Share repurchases subject to regulatory approval and may not occur
• Timing and amount of repurchases dependent on market conditions
• Redemption reduces available subordinated capital until replaced

Argus Jan 26 session

+0.82% close to close Open Argus

Details

News Market Reaction – DCOM

In the Jan 26 session, DCOM gained 0.82%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement highlights active capital management at Dime Community Bancshares. Management inte...

Analysis

This announcement highlights active capital management at Dime Community Bancshares. Management intends to redeem $40,000,000 of subordinated debentures at par on March 30, 2026, funded with cash on hand and expected to be accretive to EPS. The board also reauthorized repurchases of up to 1,566,947 common shares, supported by a Total Capital Ratio above 16%. Investors may watch actual repurchase activity, funding impacts, and future earnings updates to gauge the longer-term effects.

Key Figures

Subordinated debentures: $40,000,000 principal Redemption date: March 30, 2026 Debt maturity: 2030 +2 more

Subordinated debentures

$40,000,000 principal

Fixed/Floating subordinated debentures due 2030 to be redeemed at par

Redemption date

March 30, 2026

Planned redemption date for outstanding subordinated debentures

Debt maturity

2030

Stated maturity year of subordinated debentures being redeemed

Share repurchase capacity

1,566,947 shares

Maximum common shares authorized for repurchase under existing plan

Total Capital Ratio

in excess of 16%

Management-stated regulatory capital ratio highlighting capital strength

Historical Context

5 past events · Latest: Jan 21

5 events

1. Jan 21

   Earnings results

   24h Move

   +8.6%

   Record Q4 2025 revenue and sharply higher full-year net income and EPS.

2. Jan 13

   Earnings date

   24h Move

   +1.3%

   Announcement of Q4 2025 earnings release date and related conference call.

3. Dec 23

   Community grant

   24h Move

   -0.7%

   Grant to Junior Achievement of Long Island for financial education programs.

4. Dec 17

   Dividend declaration

   24h Move

   +0.9%

   Quarterly cash dividend of $0.25 per share maintaining distribution policy.

5. Dec 16

   Community grant

   24h Move

   +0.2%

   Grant to Accompany Capital supporting underserved entrepreneurs in NYC.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

fixed/floating subordinated debentures, share repurchase program, total capital ratio

3 terms

fixed/floating subordinated debentures financial

"all of its outstanding $40,000,000 principal amount of Fixed/Floating Subordinated Debentures"

Fixed/floating subordinated debentures are unsecured debt securities that pay either a set interest rate (fixed) or a rate that changes with market benchmarks (floating) and rank below other creditors for repayment. Think of them as being in the back of the line if a borrower runs into trouble: they typically offer higher interest to compensate for that greater risk, so investors consider them when balancing the desire for yield against the chance of losing principal.

share repurchase program financial

"Board of Directors has reauthorized its share repurchase program, allowing the repurchase"

A share repurchase program is when a company buys back its own shares from the marketplace. This reduces the total number of shares available, which can increase the value of each remaining share and signal confidence in the company's prospects. For investors, it often suggests that the company believes its stock is undervalued or that it has extra cash to return to shareholders.

total capital ratio financial

"With a Total Capital Ratio in excess of 16%, Dime has the flexibility"

The total capital ratio measures a bank’s financial cushion by comparing the capital it holds (money that can absorb losses) to the size of its assets after those assets are adjusted for how risky they are. For investors, it signals how well a bank can withstand losses and continue operating—think of it as the thickness of an insurer’s safety net relative to the weight of what it’s protecting; higher ratios generally mean lower risk.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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HAUPPAUGE, N.Y., Jan. 26, 2026 (GLOBE NEWSWIRE) -- Dime Community Bancshares, Inc. (the “Company”) announced its intention to redeem at par on March 30, 2026, all of its outstanding $40,000,000 principal amount of Fixed/Floating Subordinated Debentures (the "Debentures") due 2030. The proposed redemption is part of the Company’s ongoing capital management strategy and reflects its strong capital position and liquidity profile. The redemption of the Debentures is expected to be funded with cash on hand and will be accretive to EPS.

In addition, the Company’s Board of Directors has reauthorized its share repurchase program, allowing the repurchase of up to 1,566,947 of its outstanding common shares that remain under its existing repurchase plan. The timing and amount of any repurchases will depend on market conditions, regulatory approvals, and other factors. There can be no assurance that any repurchases will be completed in full or at all.

Stuart H. Lubow, CEO and President, stated, “These actions underscore our continued confidence in Dime's financial strength and long-term prospects. With a Total Capital Ratio in excess of 16%, Dime has the flexibility to efficiently manage our capital while continuing to support organic growth."

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 approximately $15 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 Operating Officer and 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.

FORWARD-LOOKING STATEMENTS
Statements contained in this news release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated.

FAQ

What will Dime (DCOM) redeem on March 30, 2026?

Dime intends to redeem at par all outstanding $40,000,000 of its subordinated debentures due 2030 on March 30, 2026.

How will the Dime (DCOM) debenture redemption be funded?

The company said the proposed redemption will be funded with cash on hand.

How many shares can Dime (DCOM) repurchase under the reauthorized plan?

The Board reauthorized repurchases of up to 1,566,947 common shares remaining under the existing plan.

Will Dime (DCOM) repurchases definitely occur after reauthorization?

No; repurchases depend on market conditions, regulatory approvals, and other factors, so there is no assurance they will occur.

What does the redemption mean for Dime (DCOM) earnings per share?

The company expects the debenture redemption to be accretive to EPS.