Dime Community Bancshares, Inc. Closes $46.0 Million Public Offering of Preferred Stock

BROOKLYN, N.Y., June 10, 2020 (GLOBE NEWSWIRE) -- Dime Community Bancshares, Inc. (the “Company”) (Nasdaq: DCOM) today announced the closing of its previously announced underwritten public offering of 2,300,000 shares, or $57.5 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 underwriters have exercised in full their option to purchase 300,000 shares of Preferred Stock, which is included in the 2,300,000 shares of Preferred Stock referenced above.

The Company raised approximately $44.3 million, net of underwriting discounts and estimated expenses, from the offering and expects to use the net proceeds for general corporate purposes.

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) for prior dividend periods and any accrued but unpaid (whether or not declared) dividends for the then-current dividend period to, but excluding, the redemption date, 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 2,999,200 shares of Preferred Stock, which occurred on February 5, 2020 (the “Original Shares”), and which trade on the Nasdaq Capital Market under the symbol “DCOMP.” The shares of Preferred Stock issued on June 10, 2020 are fungible with and form a single series with the Original Shares, and are identical in all respects and have the same CUSIP number as the Original Shares. As of June 10, 2020, there were 5,299,200 shares of Preferred Stock outstanding.