Why Dime Community Bancshares (DCOM) Is Down 5.7% After EPS Miss and Higher Loan Loss Provisions

• In late October 2025, Dime Community Bancshares announced several developments, including a senior executive succession plan, quarterly preferred dividends, new branch openings in Lakewood and Long Island, and third quarter results showing net interest income of US$103.4 million and net income of US$27.67 million, both up compared to the previous year.
• An interesting aspect is that despite these operational advances and stronger headline earnings, the market responded negatively due to non-GAAP earnings per share falling short of investor expectations and an increase in loan loss provisions tied to real estate charge-offs.
• We'll explore how the shortfall in non-GAAP earnings per share may influence the investment narrative and future expectations for Dime Community Bancshares.

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Dime Community Bancshares Investment Narrative Recap

To confidently hold shares in Dime Community Bancshares, an investor must believe that the bank’s expansion and business-lending initiatives can overcome current pressures from higher loan loss provisions and lagging non-GAAP earnings. While the recent news underscored execution risks as a short-term headwind, the operational trajectory and earnings momentum remain largely intact; thus, the impact on the fundamental growth catalyst, expanding business banking and deposit base, appears limited, while asset quality remains the main risk to watch.

Among several announcements, the opening of new branches in Lakewood and Long Island stands out. This move is directly tied to Dime’s core catalyst: building a broader deposit base and local relationships to support loan growth. Branch expansion supports the long-term narrative but may add to the short-term risks associated with elevated costs and the need for sustained revenue growth.

Yet, while growth is in focus, investors should be mindful of one critical issue, the heightened loan loss provisions tied to real estate charge-offs…

Read the full narrative on Dime Community Bancshares (it's free!)

Dime Community Bancshares' outlook forecasts $802.5 million in revenue and $417.1 million in earnings by 2028. This is based on an expected annual revenue growth rate of 36.7% and a dramatic increase in earnings, up by $381 million from the current $36.1 million.

Uncover how Dime Community Bancshares' forecasts yield a $36.00 fair value, a 37% upside to its current price.

Exploring Other Perspectives

Fair value opinions from three Simply Wall St Community members range widely from US$13.66 to US$56.47 per share. While loan growth opportunities drive optimism, persistent asset quality concerns continue to shape debate on the company’s outlook.

Explore 3 other fair value estimates on Dime Community Bancshares - why the stock might be worth 48% less than the current price!

Build Your Own Dime Community Bancshares Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Dime Community Bancshares research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Dime Community Bancshares research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Dime Community Bancshares' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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