Moody’s Affirms Dime Community Bank’s “A3” Deposit Rating
Rhea-AI Summary
On June 1, 2023, Dime Community Bancshares (NASDAQ: DCOM), the parent company of Dime Community Bank, announced that Moody’s Investors Service affirmed all of its ratings. The Bank’s long-term deposit rating remains at A3, and the Company's long-term issuer rating is affirmed at Baa3. Moody’s report highlighted several positive factors: Dime’s efficient operating platform, a significant portion of noninterest-bearing deposits (30% of total), no large unrealized securities losses, increased cash balances (5% of total assets as of March 31, 2023), and strong liquidity. Additionally, Dime’s CRE loan underwriting is robust, with a favorable maturity profile, and its capital profile is stable with a TCE/risk-weighted asset ratio of 9.4% as of March 31, 2023, up from 9.2% at year-end 2022.
Positive
- Moody’s affirmed Dime Community Bank’s long-term deposit rating at A3.
- Moody’s affirmed Dime Community Bancshares' long-term issuer rating at Baa3.
- Dime has a significant portion of noninterest-bearing deposits (30% of total).
- No large unrealized securities losses.
- Increased cash balances to 5% of total assets as of March 31, 2023.
- Strong liquidity to cover uninsured deposits.
- Robust CRE loan underwriting with a favorable maturity profile.
- Stable capital profile with a TCE/risk-weighted asset ratio of 9.4% as of March 31, 2023.
Negative
- None.
Insights
Analyzing...
HAUPPAUGE, N.Y., June 01, 2023 (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”), has affirmed all ratings of Dime Community Bancshares, Inc. and Dime Community Bank.
Moody’s affirmed the Bank’s long- term deposit rating of “A3”. In addition, Moody’s affirmed the Company’s long-term issuer rating of “Baa3.”
According to the Moody’s report:
- Dime’s efficient operating platform will continue to support overall earnings and noninterest-bearing deposits, which account for roughly
30% of total deposits, will limit growth of its funding costs - Dime does not have large unrealized securities losses, unlike many of its peers
- Dime boosted its cash balances to nearly
5% of total assets at March 31, 2023 and has sufficient liquidity, both on-balance sheet and from readily available sources, to cover its uninsured deposits, after adjusting for collateralized deposits and deposits with pass-through insurance - Dime is a strong CRE loan underwriter and Moody’s believes the maturity profile of its CRE is spread out over multiple years, a credit positive from an asset risk standpoint
- Dime’s capital profile has been stable. At March 31, 2023, Dime’s TCE / risk-weighted asset ratio was
9.4% , up from9.2% at year-end 2022
Kevin O’ Connor, Chief Executive Officer, stated, “We are pleased to receive an affirmation of our investment grade rating from Moody’s.”
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
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
FAQ
What is Dime Community Bank’s long-term deposit rating as of June 2023?
What is Dime Community Bancshares' long-term issuer rating as of June 2023?
How much of Dime’s total deposits are noninterest-bearing?
What is Dime’s TCE/risk-weighted asset ratio as of March 31, 2023?
What is the significance of Dime’s increased cash balances?
