DCOM

Dime Commercial Bancshares (DCOM) surged 6% on Tuesday, outperforming the S&P 500's 0.3% gain, driven by strong Q3 earnings and a strategic acquisition announcement. The bank reported 19% year-over-year revenue growth to $135 million and nearly 50% growth in adjusted net income to $39.1 million, despite flat loan growth. The company also announced a $58 million acquisition of ES Bancshares to expand its presence in Brooklyn and Staten Island.

Dime Commercial Bancshares announced a definitive agreement to acquire Empire State Bank, expanding its NYC footprint across all five boroughs. The bank is shifting focus from real estate to commercial lending, with business loans growing 30% year-over-year ($929 million). Management targets a return on assets above 1.31% by late 2027 while reducing commercial real estate concentration to manage risk.