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Investing.com - Keefe, Bruyette & Woods (KBW) has reiterated an Outperform rating on Dime Community Bancshares, Inc. (NASDAQ:DCOM) with a price target of $36.00.
The investment firm highlighted Dime’s recent expansion of its commercial platform, noting the addition of five commercial banking professionals following several deposit-focused team hires in 2025. These additions come under the leadership of Tom Geisel, Senior Executive Vice President of Commercial Lending, who joined Dime in February 2025 after previously serving as President of Corporate Banking at Webster Bank. The bank’s strategic expansion comes alongside its impressive 29-year track record of consistent dividend payments, currently yielding 3.15%.
KBW views the stock favorably at its current valuation of 1.1x tangible book value and 8.5x 2026 estimated earnings, which represents a significant discount to the KRX index trading at 1.6x and 10.5x respectively. InvestingPro analysis indicates the stock is fairly valued at current levels, with 4 analysts recently revising their earnings estimates upward. For deeper insights into DCOM’s valuation and growth potential, access the comprehensive Pro Research Report available on InvestingPro.
While KBW acknowledges that the 2025 expansion might create near-term expense headwinds, it expects Dime to achieve improved returns through diversified loan and deposit growth. The firm also notes that Dime is well-positioned in the current rate environment, being modestly liability-sensitive with strong back book repricing opportunities.
KBW projects that Dime’s return on tangible common equity (ROTCE) discount will narrow, with an exit rate in 2026 of 13.5%, approaching the peer median of 14.0%.
In other recent news, Dime Community Bancshares reported its second-quarter earnings for 2025, exceeding analyst expectations. The company achieved an earnings per share (EPS) of $0.64, slightly above the projected $0.63, representing a 1.59% surprise. Revenue also surpassed forecasts, reaching $109.7 million against an expected $106.96 million, a 2.56% surprise. In addition to financial results, Dime Community Bancshares expanded its commercial lending platform by adding five banking professionals. This expansion aims to enhance its mid-corporate and specialty finance capabilities. The new team members include Ryan Kent as Director of Commercial Strategic Initiatives and Elvis Grgurovic as Co-Head of the Mid Corporate vertical. Eric Pelletier will lead Syndications, while Matt Greene and Barry Renow join as Senior Vice Presidents. These developments reflect the company’s ongoing efforts to strengthen its market position.
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