Form 4: Basswood Capital Reports DCOM Holdings & RSU Grant

Basswood Capital Management and its managing members filed a Form 4 detailing beneficial ownership in Dime Community Bancshares, Inc., including a restricted stock unit award to Matthew Lindenbaum and existing short positions.

Summary

• Basswood Capital Management, L.L.C. (BCM), Matthew Lindenbaum, and Bennett Lindenbaum are the reporting persons for this Form 4 filing concerning Dime Community Bancshares, Inc. (DCOM).
• The event requiring this statement occurred on January 2, 2026.
• Matthew Lindenbaum received a restricted stock unit (RSU) award of 1,865 shares of Common Stock.
• Matthew Lindenbaum directly holds 179,380 shares of Common Stock, which includes the 1,865 shares underlying the RSU award.
• Matthew Lindenbaum also has a pre-existing short position of 161,015 shares of Common Stock.
• Bennett Lindenbaum directly holds 138,282 shares of Common Stock.
• Bennett Lindenbaum also has a pre-existing short position of 138,281 shares of Common Stock.
• BCM manages several funds and separate managed accounts that collectively hold significant amounts of DCOM Common Stock indirectly.
• Indirect holdings include 1,034,158 shares through certain separate Managed Accounts, 33,919 shares through Basswood Financial Long Only Fund, LP (BFLOF), 7,389 shares through Basswood Financial Fund, Ltd. (BFF LTD), 491,166 shares through Basswood Opportunity Partners, LP (BOP), 165,169 shares through Basswood Financial Fund, LP (BFF LP), and 1,545 shares through Basswood Strategic Financial Fund (BSFF).
• Matthew Lindenbaum serves on the board of directors of Dime Community Bancshares, Inc. as a representative of the Reporting Persons, making all Reporting Persons 'director-by-deputization' for Section 16 purposes.
• Each Reporting Person disclaims beneficial ownership of shares held by the Funds or Managed Accounts, except to the extent of any direct or indirect pecuniary interest therein, and also disclaims ownership of shares held directly by other reporting persons.

Sentiment

Score: 5

Explanation: This Form 4 primarily discloses beneficial ownership and a restricted stock unit grant. While the RSU grant is positive for alignment, the significant pre-existing short positions held by the managing members introduce a complex dynamic, preventing a purely positive or negative sentiment.

Positives

• Matthew Lindenbaum, a managing member of Basswood Capital Management, received a restricted stock unit award of 1,865 shares, aligning his interests with shareholders.
• Basswood Capital Management and its managing members hold a significant beneficial ownership stake in Dime Community Bancshares, Inc., indicating a vested interest in the company's performance.

Negatives

• Matthew Lindenbaum and Bennett Lindenbaum each hold substantial short positions (161,015 and 138,281 shares, respectively) in Dime Community Bancshares, Inc., which were established prior to them becoming reporting persons. These short positions represent a bet against the stock's future price appreciation.

Risks

• The existence of significant short positions held by key reporting persons (Matthew and Bennett Lindenbaum) could signal a perceived downside risk in the company's stock, even if entered into prior to their reporting status.

Future Outlook

na

Management Comments

• Matthew Lindenbaum, a managing member of Basswood Capital Management, serves on the board of directors of Dime Community Bancshares, Inc. as a representative of the Reporting Persons.
• Each Reporting Person disclaims beneficial ownership of all shares of Common Stock that are beneficially owned by the Funds or Managed Accounts, except to the extent of any direct or indirect pecuniary interest therein.
• Basswood Capital Management also disclaims beneficial ownership of the shares held directly by Matthew Lindenbaum and Bennett Lindenbaum.
• Matthew Lindenbaum and Bennett Lindenbaum each disclaim beneficial ownership of the shares held directly by the other.

Industry Context

This filing is a standard insider transaction report for a financial institution. The presence of a significant institutional investor (Basswood Capital) on the board, coupled with their funds' holdings, suggests active engagement in the financial services sector, specifically community banking. The disclosure of pre-existing short positions by individuals serving as directors, while not a new transaction, introduces an unusual dynamic that could be interpreted as a hedging strategy or a signal of perceived downside risk within the banking industry context.

Comparison to Industry Standards

• The grant of restricted stock units to a director is a common practice in corporate governance to align director interests with shareholders.
• The disclosure of significant beneficial ownership by an investment manager and its principals is standard for institutional investors taking board seats.
• The existence of personal short positions by individuals serving as directors (even if pre-existing their reporting status) is less common and could be viewed as a potential conflict of interest or a strong bearish signal, contrasting with the typical long-only positions expected from board members.

Corporate Governance

Stakeholder Impact

• Shareholders: Increased transparency regarding insider holdings and potential alignment of interests through RSU grants. The presence of short positions by key insiders could be a point of concern or analysis.
• Management: Clarification of reporting obligations for directors and related entities.

Key Dates

Recommendation

This Form 4 filing primarily provides transparency on beneficial ownership and a routine restricted stock unit grant to a director. While the significant pre-existing short positions held by the managing members of Basswood Capital Management are noteworthy, they do not represent new transactions or a change in the fundamental outlook of the company based solely on this filing. The information is largely a disclosure of existing positions and relationships, suggesting a 'hold' recommendation as there are no new material catalysts for a 'buy' or 'sell' decision.

Keywords

Dime Community Bancshares, DCOM, Basswood Capital Management, Form 4, Beneficial Ownership, Restricted Stock Unit, Insider Trading, Short Position, Corporate Governance, Director-by-Deputization, Financial Services, Banking