Dime Commercial Bancshares, Inc. will pay approximately $58 million in cash and stock for ES Bancshares, Inc., the parent of Staten Island’s Empire State Bank. The price comes to approximately 1.09x Empire’s tangible book value per share. Dime says the deal adds a granular and low cost core deposit base.
The two companies signed a definitive merger agreement, announced on October 20, 2026. As of September 30, 2026, Empire had total assets of approximately $596 million, total loans receivable, net of $518 million, and total deposits of $491 million. Empire State Bank, founded in 2004, serves customers from three branch locations in Staten Island and two in Brooklyn. Empire trades on the OTCQX as ESBS. Dime is listed on the NYSE as DCOM.
At closing, Dime will issue 720,000 shares of common stock and $30.0 million in cash to Empire shareholders. Each holder can elect stock or cash, subject to the pro ration formula in the merger agreement. The value is based on Dime’s 10 day volume weighted average price of $38.55 as of October 19, 2026, and on 6,886,282 Empire common shares outstanding. That works out to $8.39 per Empire common share.
Dime expects approximately 3.5% EPS accretion, TBV dilution of approximately 2% and an earn back of less than 3 years. It also expects an internal rate of return above its cost of capital hurdles. Those are Dime’s own estimates. Dime gave no figure for cost savings and says nothing about branch consolidation.
Once the deal closes, Dime says it will be one of only a few commercial banks with a ground level branch presence across all five boroughs of New York City.
“Staten Island is an attractive banking market that has untapped potential for Dime. Empire is a well-run commercial bank that has developed a strong deposit base,” said Stuart H. Lubow, President and Chief Executive Officer of Dime.
Phil Guarnieri, Chief Executive Officer of Empire, said: “When evaluating the future of our franchise, it was important to identify a partner with a relationship-driven approach to banking, best-in-class treasury management capabilities, and a commitment to our local markets.”
Dime is the holding company for Dime Commercial Bank, which has approximately $15 billion in assets. It says it holds the number one deposit market share on Greater Long Island among commercial banks with less than $20 billion in assets across Kings, Queens, Nassau & Suffolk counties.
The transaction is expected to close in the first quarter of 2027, subject to customary closing conditions, including regulatory approval and the approval of Empire’s shareholders. Dime will file a registration statement on Form S-4 with the SEC.
Luse Gorman, PC served as Dime’s legal advisor. FinPro Capital Advisors was exclusive financial advisor to Empire, and Kilpatrick Townsend & Stockton LLP served as Empire’s legal advisor.
Herald View
Dime is buying deposits, and paying a sober price for them: approximately 1.09x tangible book for a Staten Island lender with $491 million of deposits and five branches. Its own estimates for EPS accretion and TBV dilution show a buyer that kept the price in check. Small New York City commercial banks weighing a sale now have a reference point in that multiple: a solid deposit base will find a buyer, but it won’t fetch a rich price.
