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Financial services

Dime Community Bancshares, Inc. Receives Positive Rating Outlook from Kroll Bond Rating Agency

Strategic Insights

— 1 min read

Dime Community Bancshares, Inc., the parent company of Dime Community Bank, has received a positive rating outlook from Kroll Bond Rating Agency (KBRA). The revision from "stable" to "positive" reflects the company's strong execution of strategic initiatives, particularly in capitalizing on disruption and dislocation in its footprint following area bank failures in 2023. KBRA cited Dime's successful onboarding of deposit-focused teams, which has improved liquidity and funding profiles, with the company now outperforming peers on most key metrics.

Key Takeaways:

  • Dime Community Bancshares, Inc. has received a positive rating outlook from Kroll Bond Rating Agency, revising from "stable" to "positive".
  • The revision reflects the company's strong execution of strategic initiatives, particularly in capitalizing on disruption and dislocation in its footprint following area bank failures in 2023.
  • KBRA cited Dime's successful onboarding of deposit-focused teams, which has improved liquidity and funding profiles, with the company now outperforming peers on most key metrics.
  • Over the past two years, Dime has added $2 billion in core deposits, with a healthy DDA mix contributing to lower deposit costs than most KBRA-rated peers.
  • The inflow of liquidity has also enabled a meaningful reduction in wholesale funding and supported the loan diversification growth efforts.
  • KBRA noted that Dime's ratings are also supported by its long-standing outperformance in credit quality, demonstrated across multiple cycles.
  • Dime's NCO ratio has averaged 15 bps since the onset of the global financial crisis, highlighting its disciplined credit culture.
  • Stuart H. Lubow, President and Chief Executive Officer, stated, "KBRA has recognized the progress we have made in creating a high-quality balance sheet."
  • Dime Community Bacshares, Inc. has over $14 billion in assets and is the number one deposit market share among community banks on Greater Long Island.

Statistics:

  • KBRA deposit and senior unsecured debt rating for Dime Community Bank is BBB+.
  • Dime has added $2 billion in core deposits over the past two years.
  • Dime's DDA mix has contributed to lower deposit costs than most KBRA-rated peers.
  • Dime's NCO ratio has averaged 15 bps since the global financial crisis.
  • Dime has $14 billion in assets.

Sources:

  • Kroll Bond Rating Agency, "KBRA Revises Outlook on Dime Community Bancshares, Inc. to Positive from Stable"
  • GlobeNewswire, "Dime Community Bancshares, Inc. Receives Positive Rating Outlook from Kroll Bond Rating Agency"

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