Dime Community Bancshares in Hauppauge, N.Y., is raising $125 million to potentially reposition its balance sheet.
The $13.7 billion-asset company disclosed in a presentation that it plans to sell common stock through a follow-on offering. The company could increase the offering by 15% if there is enough demand.
Net proceeds could be used to support organic growth and could include use as working capital, investments in the company’s bank and “potential balance sheep optimization strategies.”
Dime noted that it has about $400 million of low-yielding securities and roughly $100 million of underperforming bank-owned life insurance policies. While the sales would trigger about $41 million of after-tax losses, they would also improve the net interest margin by 10 basis points.
Raymond James and Keefe, Bruyette & Woods are handling the offering.