Highlights

  • Dime Commercial shows 161.87% basic EPS growth, a P/E of 13.87 and PEG of 0.00.
  • Third quarter net income available to common stockholders was $39.7 million, or $0.90 per share.
  • Net interest margin was 3.35% against 3.28% in the second quarter.
  • Dime repurchased 298,003 shares at a weighted-average price of $40.64.

Basic earnings per share growth of 161.87% over one year, a trailing twelve-month P/E of 13.87 and a PEG of 0.00 on an expected basis define Dime Commercial Bancshares (NYSE:DCOM) as an undervalued growth stock, with shares trading at USD 41.87 on October 28, 2026, down 1.53%. In its latest disclosures, the bank holding company repurchased 298,003 shares in the third quarter, reported third quarter 2026 net income available to common stockholders of $39.7 million, or $0.90 per diluted common share, on October 20, and announced its intention to acquire ES Bancshares, Inc., the parent company of Empire State Bank.

Dime Commercial Bancshares is based in Hauppauge, New York, and incorporated in New York. It is the holding company for Dime Commercial Bank, a New York State-chartered trust company with approximately $15 billion in assets. The company describes the bank as holding the number one deposit market share on Greater Long Island among commercial banks with less than $20 billion in assets. Its loans include business, multifamily, commercial real estate and residential loans.

Growth: Third Quarter Earnings, Net Interest Income and Business Loans

Net income available to common stockholders was $39.7 million in the third quarter against $33.0 million in the second quarter of 2026 and $25.8 million in the third quarter of 2025. Basic and diluted earnings per share were $0.90 against $0.75 and $0.59. For the nine months, earnings per share were $2.40 against $1.67. Adjusted diluted earnings per share, a non-GAAP measure, were $0.91 against $0.61.

Net interest income was $121.2 million against $115.2 million in the second quarter and $103.4 million a year earlier, and the net interest margin was 3.35% against 3.28% and 3.01%. Business loans were $3,991,773 thousand at September 30, 2026, growing $346.6 million on a linked-quarter basis and $929.1 million year over year. Total deposits were $13.14 billion against $12.06 billion a year earlier, and the efficiency ratio was 48.4% against 53.8%.

Valuation: P/E of 13.87, PEG of 0.00 and Book Value

The P/E ratio of 13.87 is measured on trailing twelve-month earnings, and the PEG ratio of 0.00 on expected growth. Book value per common share was $32.10 at September 30, 2026, against $31.79 at June 30, 2026 and $30.44 a year earlier. Return on average assets was 1.10% against 0.94%.

Chief Executive Officer Stuart Lubow said on the earnings call that the company sees long-term value in its shares, underpinned by net interest margin expansion and net interest income growth. Chief Financial Officer Avinash Reddy said operating with a commercial real estate ratio below 350% should lead to a higher valuation over the medium to longer term.

Capital and Balance Sheet: Repurchases, Dividends and Funding

Dime repurchased 298,003 shares in the third quarter, representing 0.7% of shares outstanding at the beginning of the period, at a weighted-average price of $40.64. Stockholders' equity was $1.52 billion, up $2.3 million. Dividends were $0.25 per common share in both the third and second quarters. The company said its regulatory capital ratios exceeded all applicable requirements, with the Tier 1 common equity ratio at a preliminary 11.75%.

Federal Home Loan Bank advances were $335.0 million against $385.0 million at June 30, 2026. The consolidated commercial real estate concentration ratio was 338% against 352% at June 30, 2026.

Disclosed Risks and Outlook: Credit Quality and Acquisition

Non-performing assets were $99.5 million at September 30, 2026 against $69.0 million at June 30, 2026 and $72.1 million a year earlier. Non-performing multifamily loans were $47,773 thousand against $26,893 thousand. The credit loss provision was $13.8 million against $13.9 million. Reddy said the provision covered specific reserves on commercial and industrial loans and multifamily charge-offs, and that the non-performing multifamily loans are rent regulated.

The company said it anticipates continued net interest margin expansion and net interest income growth, with loan repricing expected to continue through 2027. On the call, Reddy said he expects further margin expansion in the fourth quarter, core cash operating expenses of around $66 million for the fourth quarter and a fourth quarter tax rate of 28.5%. He said the company now sees a net interest margin of over 3.60% by the end of 2027, up from over 3.50%.

Management said Empire State Bank has $600 million in assets and that it expects the deal to be approximately 3.5% accretive to earnings on a run-rate basis once synergies are realized.