Dime Community Bancshares: Consider Shifting From Baby Bonds To Preferred Shares
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Dime Community Bancshares has improved its net interest income due to a 6% increase in deposits, leading to a moderated loan to deposit ratio of 95%. This reduces external borrowing and future borrowing costs. However, risks include high loan concentration in multifamily and non-owner-occupied commercial real estate, with inadequate credit loss allowances.
November 14, 2024 | 11:30 am
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Dime Community Bancshares has improved its financial position with increased deposits and a better loan to deposit ratio, reducing borrowing costs. However, it faces risks from high loan concentration in specific real estate sectors.
The increase in deposits and improved loan to deposit ratio are positive indicators for DCOM, suggesting better financial health and reduced borrowing costs. However, the high concentration in multifamily and commercial real estate loans poses a risk, which could impact future performance if not managed properly.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100