FBR Capital Reiterates a 'Market Perform' on Dime Community (DCOM); $0.01 Beat on Drop in Provision

FBR Capital reiterates a 'Market Perform' on Dime Community Bancshares, Inc. (NASDAQ: DCOM), PT $16.

FBR analyst says, "In 1Q11, lower-than-expected provision expense boosted EPS, contributing to the quarter's beat. DCOM generates strong profitability (16.6% ROTCE) and has pristine credit, but it will likely take stronger earnings growth than we model to take the shares to the next level. Despite stronger prepayment penalty income in 1Q11, NIM contracted and Dime is reluctant to grow its loan portfolio with rates near historical lows. We raise our 2011 operating EPS estimate to $1.35 (from $1.30), to reflect 1Q11 results and lower credit costs. Our 2012 operating EPS estimate of $1.40 is unchanged."

For more ratings news on Dime Community Bancshares, Inc. click here and for the rating history of Dime Community Bancshares, Inc. click here.

Shares of Dime Community Bancshares, Inc. closed at $15.05 yesterday.

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