Dime Community Bancshares (DCOM) experienced a significant pre-market surge of 5.03% on Monday, following the company's announcement of strategic capital management initiatives.
The bank holding company revealed its intention to redeem all $40 million of its outstanding subordinated debentures due 2030 at par on March 30. This redemption will be funded with cash on hand and is expected to be accretive to earnings per share, reflecting the company's strong capital position and liquidity profile.
Additionally, Dime's board reauthorized its share repurchase program, allowing for the buyback of up to 1.6 million shares under the existing plan. The timing and amount of repurchases will depend on market conditions and regulatory approvals. These combined actions signal management's confidence in the company's financial health and commitment to enhancing shareholder value through efficient capital allocation.