Dime Community Bancshares Prices New Preferred

Dime Community Bancshares (DCOM) has priced their previously announced preferred shares.

When I saw this coupon I thought I must be having a bad dream–actually I said “holy shxx”. 5.5% on a small community banker with a junky BB- Fitch rating. Well I guess the market will speak and since buyers seem to be hungry I’m sure the issue will be trading at $25 right away. ON THE OTHER HAND if buyers would reject the issue and trade it down a buck maybe I would have interest.

The issue is non cumulative and pays dividends on the normal quarterly schedule with an early optional redemption available in 2025. Shares are redeemable only on a dividend payment date.

Shares will trade OTC Grey Market immediately under temporary tick DIMEP.

The final pricing document can be read here.

TimH was right on top of this pricing.

8 thoughts on “Dime Community Bancshares Prices New Preferred”

    1. I’m seeing some lackluster ratings on dime common. Bank founded in 1864 but that guarantes nothing. To me this is perhaps for someone with most everything and a 5 ytc on small positions might help.

  1. Here’s another laugher for you this morning. Got a call from my Schwab guy they just got in a new 30 Year Bond from “Kimberly-Clark”, a 2.95% coupon. I still scratch my head regarding “Who is buying this garbage”???

  2. Schwab showing 350,000 shares traded. Current price of $24.90 5 minutes before the market open.

    Doesn’t look like it will trade down much (if at all)

  3. Lol! Makes AATRL with a similar yield look a lot better as we debate whether the company will fall from its A- rating to BBB+ over in Sandbox.

  4. I can’t see my machines right now, but I see the common has at least a 20 year history and looks to be at or near an all time high.

    I use to get all bank financials back in the day, detaiked breakdowns including charge offs and non performing. You could get a feel for their portfolio risks. Dime might be OK, rate, though,….

  5. won’t even bother researching it. Hoping it falls a buck if only to deter others from too low rates.

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