Dime Community Bancshares, Inc. (NASDAQ: DCOM) has announced the completion of a repositioning of its available-for-sale investment securities portfolio during the fourth quarter. The company executed the sale of $379 million of lower-yielding available-for-sale debt securities, which had a weighted average yield of 1.20% and a weighted average duration of 3.3 years. Simultaneously, the company purchased $379 million of debt securities with a higher weighted average yield of 5.08% and a weighted average duration of 4.2 years.
As a result of the repositioning, the company expects to recognize a one-time pre-tax loss on the sale of securities of approximately $43 million in the quarter ending December 31, 2024.
Additionally, the company has initiated the distribution of payments to eligible participants of a legacy pension plan that its Board of Directors approved for termination. The termination is expected to result in an expense of approximately $1 million in the quarter ending December 31, 2024. The remaining benefit obligations of the plan are anticipated to be distributed in the first quarter of 2025, at which time the company will recognize an additional expense of approximately $2 million.
Dime Community Bancshares, Inc., is the holding company for Dime Community Bank, a New York State-chartered trust company with over $13.7 billion in assets and the number one deposit market share among community banks on Greater Long Island. Today the company's shares have moved -1.8% to a price of $33.94. For more information, read the company's full 8-K submission here.
