Dime Community Bancshares: Preferred Shares Offer Better Income And Return

  • Dime Community Bancshares has improved margins due to lower borrowing costs and a better loan-to-deposit ratio, despite tepid loan growth. Loan performance risks remain, with rising nonperforming assets and a low allowance for credit losses, making common shares less attractive. The baby bond DCOMG trades above par and faces call risk, reducing its yield to call to 6.68%, less appealing than headline yield.