Dime Community Bancshares: Baby Bond Offers An 8.1% Yield To Maturity
Summary
- Dime Community Bancshares' baby bonds are now a better income option than preferred shares due to recent market movements and stable performance.
- The bank's net interest margin and net interest spread have significantly improved, driven by a drop in borrowing yields and stable asset yields.
- Impressive deposit growth outpaced loan growth, reducing the loan-to-deposit ratio and external borrowing, which should enhance future earnings.
- Despite risks in non-owner occupied commercial real estate loans and low loan loss allowances, baby bonds remain a safer investment due to their seniority.
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