Dime Commercial Bancshares has struck a deal to buy ES Bancshares, the parent company of Empire State Bank, for roughly $58 million, giving the Hauppauge-based bank a deeper foothold in Staten Island and Brooklyn and putting it on track to operate branches in all five New York City boroughs.
The agreement, announced Tuesday, calls for Dime to issue 720,000 shares of its common stock along with $30 million in cash to Empire shareholders, according to Dime Commercial Bancshares. Empire shareholders will be able to elect cash or stock, subject to proration provisions in the agreement, and the deal works out to about $8.39 per Empire common share based on Dime's 10-day volume-weighted average share price of $38.55 as of October 19, which the company says represents roughly 1.09 times Empire's tangible book value per share. The transaction valuation of approximately 6.9 million Empire shares outstanding is expected to close in the first quarter of 2027, pending regulatory approval, Empire shareholder approval and other customary closing conditions.
Empire State Bank, founded in 2004 and headquartered in Staten Island, currently operates three branches on Staten Island and two in Brooklyn. As of September 30, 2026, the bank reported approximately $596 million in total assets, $518 million in net loans receivable and $491 million in deposits, per the same release. A separate snapshot put Empire's assets at $617.6 million as of June 30, 2026, a discrepancy that reflects different reporting dates rather than a single current figure.
Why Dime Wants a Staten Island Partner
Dime Commercial Bank, a New York State-chartered trust company, reports roughly $15 billion in assets and holds the top deposit market share on Greater Long Island among commercial banks with less than $20 billion in assets, the release states. Company leadership framed the Empire purchase as a way to add a granular, low-cost core deposit base while deepening commercial relationships in two boroughs where Dime wants more density.
“This transaction represents another logical step in Dime's growth strategy,” said Stuart H. Lubow, Dime's president and chief executive officer, who described Staten Island as an attractive banking market with untapped potential for Dime. The combination is meant to bring together Dime's larger commercial banking platform with Empire's established local relationships, creating what the companies describe as opportunities to serve existing customers with broader products and pursue additional business across Staten Island and Brooklyn.
Once the deal closes, Dime expects to become one of only a few commercial banks maintaining ground-level branch locations in all five New York City boroughs, a milestone citybiz also flagged in its coverage of the announcement. The expanded footprint is expected to support Dime's broader relationship banking, treasury management and commercial lending strategy throughout the city.
What Empire's Leadership Had to Say
Phil Guarnieri, Empire's chief executive officer, said the bank prioritized finding a partner with a relationship-focused model and a continued commitment to the communities it serves. He said a suitable partner needed relationship-driven banking, strong treasury management capabilities and a commitment to local markets. Guarnieri framed the merger as giving Empire's customers access to a substantially larger banking organization with broader treasury management capabilities and commercial banking resources.
Deal Terms and Expected Financial Impact
Dime estimated the acquisition will generate approximately 3.5% earnings-per-share accretion, about 2% tangible book value dilution, and an earn-back period of less than three years, according to the same investor release. The company also said it expects the transaction's internal rate of return to exceed its cost-of-capital requirements. Luse Gorman, PC is advising Dime on the deal, while FinPro Capital Advisors is serving as Empire's exclusive financial advisor and Kilpatrick Townsend & Stockton LLP is advising Empire as legal counsel.
The New York State Department of Financial Services has previously described Empire State Bank as a New York State-chartered commercial bank headquartered in Staten Island and a wholly owned subsidiary of ES Bancshares, Inc., according to a New York Department of Financial Services community reinvestment exam. Dime trades on the New York Stock Exchange under the ticker DCOM, while ES Bancshares trades on the OTCQX market under the ticker ESBS.
A Strong Quarter Ahead of the Announcement
The acquisition news arrived alongside a solid third-quarter showing for Dime. The bank reported quarterly revenue of $135 million, which it described as a company record, according to a Benzinga transcript of Dime's earnings call. Business loans grew by approximately $929 million year over year, a 30% increase, while the bank's loan pipeline stood at roughly $1.4 billion with a weighted average rate near 6.5%. Dime's net interest margin climbed to 3.35% in the third quarter, marking its tenth consecutive quarterly increase, the same transcript shows.
