10 Most Undervalued Bank Stocks To Invest In According To Analysts

7. Dime Community Bancshares, Inc. (NASDAQ:DCOM)

Average Upside Potential: 31.41%

Forward P/E: 11.6

Dime Community Bancshares, Inc. (NASDAQ:DCOM) engages in commercial banking and financial services via its wholly owned subsidiary, Dime Community Bank (Dime). Dime offers deposit and loan products and financial services to consumers, local businesses, and municipalities.

Dime ranks at the top by deposit market share on Greater Long Island amongst community banks. It serves as the only publicly traded community bank with more than $1.15 billion of Tier 1 capital headquartered on Greater Long Island. Dime operates in an attractive market, with $329 billion of total deposits in the Greater Long Island marketplace and a significant opportunity to continue to gain market share from bigger banks.

While the median household income in Dime’s deposit footprint exceeds the national average, the significant business density in its footprint enables Dime to build commercial relationships, allowing it to operate successfully as a pure-play in-market community commercial bank. With 61 new deposit-focused bankers hired since March 2023, Dime has been strategically expanding its deposit franchise. Meanwhile, Manhattan and select markets in New Jersey are targeted areas for expansion in 2025.