Dime Community Bancshares Prices Offering of Subordinated Notes

Dime Community Bancshares, Inc. has announced the pricing of its offering of $65,000,000 of its 9.000% fixed-to-floating rate subordinated notes due 2034. The company has also granted the underwriters a 30-day option to purchase up to an additional $9,750,000 aggregate principal amount of the notes to cover over-allotments, if any.

The notes will initially bear interest at 9.000% per annum, with interest payable quarterly in arrears, commencing on the issue date, to, but excluding, July 15, 2029. Commencing July 15, 2029, the interest rate on the notes will reset quarterly to a floating rate per annum equal to a benchmark rate that is expected to be three-month term SOFR plus 495.1 basis points, with interest payable quarterly in arrears.

The company may redeem the notes, in whole or in part, on and after July 15, 2029, at a price equal to 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest. The notes will mature on July 15, 2034 if they are not earlier redeemed.

The company expects to close the transaction, subject to customary conditions, on or about June 28, 2024. The notes are intended to qualify as tier 2 capital for regulatory purposes. The notes are expected to be listed on the NASDAQ stock market within 30 days of the original issue date under the trading symbol “DCOMG”.

The company intends to use the net proceeds of the offering for general corporate purposes, including supporting organic growth initiatives, and to support the company and bank’s regulatory capital ratios.

Raymond James & Associates, Inc. and Keefe, Bruyette & Woods, a Stifel company are acting as joint book-running managers for the offering, while D.A. Davidson & Co. and Piper Sandler are acting as co-managers for the offering.

Dime Community Bancshares, Inc. is the holding company for Dime Community Bank, a New York state-chartered trust company with over $13.5 billion in assets and the number one deposit market share among community banks on greater Long Island.

This press release contains forward-looking statements that are based on the company’s beliefs and assumptions and on information currently available to the company. The market has reacted to these announcements by moving the company's shares 3.8% to a price of $19.94. For the full picture, make sure to review Dime Community Bancshares's 8-K report.

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