Form 4: Basswood Capital Sells DCOM Shares, Reveals Short Positions

Basswood Capital Management and its managing members reported a sale of 9,000 Dime Community Bancshares shares, while also disclosing significant short positions.

Summary

• Basswood Capital Management, L.L.C., Matthew Lindenbaum, and Bennett Lindenbaum (collectively, the Reporting Persons) filed a Form 4 regarding their beneficial ownership in Dime Community Bancshares, Inc. (DCOM).
• On September 9, 2025, 9,000 shares of Common Stock were sold at a price of $30.33 per share.
• Following the transaction, the Reporting Persons beneficially own a total of 2,049,143 shares of Common Stock, held directly and indirectly through various funds and managed accounts.
• Matthew Lindenbaum, a managing member of Basswood Capital Management, serves on the board of directors of Dime Community Bancshares as a representative of the Reporting Persons.
• Bennett Lindenbaum holds a short position of 138,281 shares of Common Stock, entered into prior to becoming a reporting person.
• Matthew Lindenbaum holds a short position of 161,015 shares of Common Stock, also entered into prior to becoming a reporting person, which includes 1,848 shares underlying restricted stock unit awards.

Sentiment

Score: 3

Explanation: The insider sale combined with the disclosure of significant short positions by key individuals associated with the reporting entity indicates a negative sentiment towards the company's stock.

Negatives

• A significant insider group, including a director-by-deputization, sold 9,000 shares of Common Stock.
• Two key individuals associated with the reporting entity, Matthew Lindenbaum and Bennett Lindenbaum, hold substantial short positions in Dime Community Bancshares' Common Stock, totaling 299,296 shares.

Risks

• The insider sale could be perceived negatively by the market, potentially signaling a lack of confidence in the company's near-term prospects.
• The existence of significant short positions held by individuals closely associated with the company's governance structure may indicate a bearish outlook or concerns about future performance.

Future Outlook

No forward-looking statements or guidance were provided in this filing.

Management Comments

• Matthew Lindenbaum, a managing member of Basswood Capital Management, serves on the board of directors of the Issuer 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 reports an insider transaction and does not provide broader industry context or trends.

Corporate Governance

Stakeholder Impact

• Shareholders may interpret the insider sale and the disclosed short positions as a negative signal, potentially leading to decreased investor confidence and downward pressure on the stock price.

Key Dates

Recommendation

The sale of shares by a significant insider group, coupled with the disclosure of substantial short positions held by key individuals within that group, suggests a lack of confidence in the company's near-term prospects. While the overall beneficial ownership remains large, the transaction and the short positions could signal potential headwinds or a bearish outlook from informed parties, warranting a 'sell' recommendation.

Keywords

Dime Community Bancshares, DCOM, Basswood Capital Management, Insider Trading, Form 4, Stock Sale, Beneficial Ownership, Financial Services, Banking, Short Position