Dime Commercial Bancshares to Acquire ES Bancshares, Expanding Staten Island Footprint
DCOM sits 53% above its 52-week low of $25.625.
Summary
Dime Commercial Bancshares agreed to acquire ES Bancshares, Inc., a move that deepens its Staten Island branch network and adds franchise value. DCOM is the acquirer and the primary party affected; ESBS is the target and will be absorbed. The deal represents a value of about $58M, or $8.39 per Empire common share. The deal lands right after Dime's strong Q3, when it reported EPS of $0.90, up 53% year over year, on record $135M revenue and a 3.35% net interest margin. That earnings momentum and the reauthorized buyback give it room to fund and digest an acquisition. Watch for the merger agreement's 8-K, which should lay out the premium to ESBS book value and any dilution or capital impact.
At the time of this announcement, DCOM was trading at $39.11 on NYSE in the Finance sector, with a market capitalization of approximately $1.7B. The 52-week trading range was $25.63 to $41.97. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.