Dime Community Bancshares, Inc. Prices Public Offering of Preferred Stock

BROOKLYN, N.Y., June 03, 2020 (GLOBE NEWSWIRE) -- Dime Community Bancshares, Inc. (the “Company”) (Nasdaq: DCOM) today announced that it has priced an underwritten public offering of 2,000,000 shares, or $50.0 million in aggregate liquidation preference, of its 5.50% Fixed-Rate Non-Cumulative Perpetual Preferred Stock, Series A, par value $0.01 per share (the “Preferred Stock”), with a liquidation preference of $25.00 per share.

The Company expects to use the net proceeds from the offering, which are expected to be $38.5 million (gross proceeds less underwriting discount and estimated expenses), for general corporate purposes.

The Company has granted the underwriters a 30-day option to purchase up to 300,000 additional shares of Preferred Stock. The Company will pay dividends on these shares of Preferred Stock when, as, and if declared by its board of directors, at a fixed rate of 5.50% per annum, payable quarterly, in arrears, on February 15, May 15, August 15 and November 15 of each year, with the initial dividend period beginning on May 15, 2020 to, but excluding, the next succeeding dividend payment date. The Preferred Stock is perpetual and has no stated maturity. The Company may redeem the Preferred Stock at its option at a redemption price equal to $25.00 per share, plus any declared and unpaid dividends (without regard to any undeclared dividends), subject to applicable regulatory approval, on or after June 15, 2025 or within 90 days following a regulatory capital treatment event, as described in the prospectus supplement and accompanying prospectus relating to the offering.

This offering is a reopening of the Company’s original issuance of the Preferred Stock, which occurred on February 5, 2020 (the “Original Shares”), and which trades on the Nasdaq Capital Market under the symbol “DCOMP”. As of June 3, 2020, there were 2,999,200 shares of Preferred Stock outstanding. The shares of Preferred Stock currently being offered will be fungible with and form a single series with the Original Shares, and will be identical in all respects and have the same CUSIP number as the Original Shares.

The offering is expected to close on or about June 10, 2020, subject to customary closing conditions.

Raymond James & Associates, Inc. is acting as book-running manager for the offering. D.A. Davidson & Co. is acting as a co-manager.

The offering will be made only by means of a prospectus supplement and accompanying base prospectus. The Company has filed a registration statement (including a base prospectus) and a preliminary prospectus supplement with the U.S. Securities and Exchange Commission (the “SEC”) for the offering which this communication relates and will file a final prospectus supplement related to the offering. Copies of the final prospectus supplement and the accompanying base prospectus for the offering, when available, may be obtained by contacting Raymond James & Associates, Inc. at 880 Carillon Parkway, St. Petersburg, FL 33716, by calling 1 [phone] or by email at [e-mail].