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

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

News Market Reaction – DCOMG

+0.64%

1 alert

+0.64% News Effect

On the day this news was published, DCOMG gained 0.64%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

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.