Core Points - Dime Community Bancshares, Inc. has received necessary approvals to open a new branch in Lakewood, New Jersey [1][2] - The branch will be located at 500 Boulevard of the Americas, with construction expected to begin in the second half of 2025 and opening planned for early 2026 [2] - Dime Community Bancshares, Inc. is the parent company of Dime Community Bank, which has over $14 billion in assets and holds the number one deposit market share among community banks in Greater Long Island [3]

Financial Performance - Net income available to common stockholders for the three months ended March 31, 2025, was $19.636 million, compared to $15.870 million for the same period in 2024, representing a 23.4% increase[39]. - Basic and diluted earnings per share (EPS) for the three months ended March 31, 2025, were both $0.45, up from $0.41 in the same period of 2024, indicating a 9.8% growth[39]. - The weighted-average common shares outstanding increased to 42,948,690 for the three months ended March 31, 2025, from 38,255,558 in 2024, reflecting a 12.5% rise[39]. Comprehensive Income - The accumulated other comprehensive income (loss) as of March 31, 2025, was $(39.045) million, an improvement from $(45.018) million as of January 1, 2025[34]. - The company reported a net other comprehensive income of $5.973 million for the three months ended March 31, 2025, compared to $6.113 million for the same period in 2024[36]. - The Company recorded a loss of $7.567 million in other comprehensive income for the three months ended March 31, 2025, compared to a gain of $2.145 million for the same period in 2024[88]. Securities and Investments - As of March 31, 2025, total securities available-for-sale amounted to $746.953 million, with a fair value of $710.579 million, reflecting unrealized losses of $38.605 million[44]. - The total fair value of held-to-maturity securities was $558.786 million as of March 31, 2025, with an amortized cost of $631.334 million[47]. - The fair value of available-for-sale securities was reported as $9,703 thousand for agency notes, $175,536 thousand for corporate securities, and $299,513 thousand for pass-through MBS issued by GSEs[104]. Loans and Credit Quality - Total loans held for investment, net of fair value hedge basis point adjustments, decreased slightly from $10.871943 billion on December 31, 2024, to $10.868735 billion on March 31, 2025[53]. - Business loans increased to $2.788201 billion as of March 31, 2025, compared to $2.725726 billion at the end of 2024[53]. - The allowance for credit losses on loans held for investment rose from $88.751 million on December 31, 2024, to $90.455 million on March 31, 2025[53]. - The total non-accrual loans amounted to $58,041,000 as of March 31, 2025, compared to $49,479,000 as of December 31, 2024, indicating an increase of about 17.5%[57]. - The company did not recognize any interest income on non-accrual loans held for investment during the three months ended March 31, 2025, and 2024[56]. Derivatives and Hedging - As of March 31, 2025, the notional amount of cash flow hedges for interest rate products was $150 million, with a fair value asset of $6.591 million, down from $8.318 million as of December 31, 2024[76]. - The notional amount of interest rate derivatives not designated as hedging instruments was $1.645 billion as of March 31, 2025, with a fair value asset of $92.149 million, compared to $1.666 billion and $108.178 million respectively as of December 31, 2024[76]. - The cumulative basis adjustment for fair value hedges was $1.933 million as of March 31, 2025, down from $2.615 million as of December 31, 2024[84]. Borrowings and Debt - The company had borrowings from the FHLBNY totaling $508.0 million as of March 31, 2025, down from $608.0 million at December 31, 2024[112]. - Total FHLBNY advances decreased from $608 million at December 31, 2024, to $508 million at March 31, 2025, with a weighted average interest rate of 4.40%[116]. - The Company issued $65 million in fixed-to-floating rate subordinated notes due 2034, with a fixed annual interest rate of 9.00% for the first five years[117]. Compensation and Employee Benefits - The Company recognized a total benefit cost of $7.017 million for retirement plans during the three months ended March 31, 2025[126]. - The 401(k) Plan held Company common stock valued at $6 million at March 31, 2025, up from $4.4 million at March 31, 2024[127]. - The Company has $8.5 million of total unrecognized compensation cost related to unvested restricted stock awards to be recognized over a weighted-average period of 2.1 years[132]. Tax and Regulatory Matters - The consolidated effective tax rate for the Company was 25.3% for the three months ended March 31, 2025, down from 27.1% in the same period of 2024[136]. - The Company has not experienced any significant unusual income tax items during the three months ended March 31, 2025[136]. - There were no changes in the Company's internal control over financial reporting that materially affected such controls during the quarter ended March 31, 2025[244].

Core Viewpoint - Dime Community Bancshares, Inc. is launching a new fund finance vertical to enhance its offerings in the private equity sector, led by Michael Watts, aiming to capitalize on growth opportunities in this space [1][2][3]. Group 1: Company Expansion - The new fund finance vertical is part of Dime's growth strategy, which has already seen a significant increase in business loans, growing by over $450 million in the twelve months ending March 31, 2025 [2]. - Dime has previously established successful verticals in Healthcare and Not-for-Profit, indicating a strategic focus on industry-specific expertise [2][3]. - The company aims to recruit talented individuals from various financial institutions to bolster its capabilities and coverage [2]. Group 2: Leadership and Strategy - Michael Watts, previously a Senior Vice President at East West Bank, has been appointed to lead the new fund finance vertical, which is expected to provide customized financing solutions to private equity firms [1][3]. - The expansion into fund finance is seen as a way to diversify Dime's business lines and enhance its competitive position in the market [3]. Group 3: Company Profile - Dime Community Bancshares, Inc. holds over $14 billion in assets and has the number one deposit market share among community banks in Greater Long Island [4].

Core Insights - Dime Community Bancshares, Inc. is focused on executing its growth plan and expanding its presence in the NYC metro area by hiring experienced professionals [1][2]. Group 1: Company Developments - Dime Community Bancshares has appointed Solomon Ponniah as Senior Vice President and Group Leader, who brings over 15 years of experience in Commercial Lending [1]. - Solomon Ponniah's previous role was Director of Business Banking at Popular Bank, indicating a strong background in the banking sector [1]. - The hiring aligns with Dime's goal of enhancing its commercial lending division and increasing its market presence in the NYC metro area [2]. Group 2: Company Profile - Dime Community Bancshares, Inc. is the parent company of Dime Community Bank, which has over $14 billion in assets [3]. - The bank holds the number one deposit market share among community banks in Greater Long Island, specifically in Kings, Queens, Nassau, and Suffolk counties [3].

Financial Data and Key Metrics Changes - Core deposits increased by $1.3 billion year-over-year, with deposit teams growing their portfolios to $1.9 billion [5][6] - Cost of deposits reduced to 2.09% in Q1 2025, while net interest margin (NIM) increased to approximately 2.9% for the fourth consecutive quarter [6][15] - Core pre-tax provision income rose to $46 million in Q1 2025 from $28 million a year ago, resulting in a core return on assets (ROA) of 77 basis points [10][14] - Adjusted EPS was $0.57 per share, reflecting a 36% linked-quarter increase and a 50% year-over-year increase [14] Business Line Data and Key Metrics Changes - Business loans grew by over $60 million in Q1 2025 and over $400 million year-over-year, with a loan pipeline currently at approximately $1.1 billion and an average yield of 7.22% [8][9] - Non-brokered deposits increased by approximately $65 million compared to year-end levels, with a core deposit growth of around $250 million when excluding title company-related deposits [16][36] Market Data and Key Metrics Changes - The company has a strong capital position, with a common equity Tier 1 ratio of 11.1% and a total capital ratio of 15.7% [18] - The company is managing expenses prudently, with core cash operating expenses for Q1 at $57.9 million, excluding non-core items [17] Company Strategy and Development Direction - The company plans to expand into the Lakewood, New Jersey market, indicating a strategic move to tap into new customer bases [12][85] - Hiring efforts are focused on both sides of the balance sheet, with a significant emphasis on growing business loans and core deposits [11][72] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about NIM improvement despite the uncertain rate environment, citing significant back book loan repricing opportunities [7][22] - The company expects net loans to remain relatively flat in Q2 2025, with growth anticipated in the latter half of the year [23][80] Other Important Information - The company has made several new hires to enhance its loan and deposit capabilities, with a focus on maintaining profitability and growth [11][72] - The company is cautious about the current economic environment, particularly regarding potential impacts from tariffs and competition [105][92] Q&A Session Summary Question: Inquiry about loan pipeline mix - The loan pipeline consists of approximately $350 million in commercial and industrial (C&I) loans, $185 million in owner-occupied commercial real estate (CRE), and $250 million in healthcare loans [31] Question: Update on deposit growth and costs - The cost of deposits is around 2.10%, with a healthy mix of demand deposits [34] Question: Credit front and reserve build guidance - The reserve build was less than expected, with a target provision of 90 basis points to 1% over time [40] Question: Cash balance and margin opportunities - The company is managing its cash balance strategically, aiming to maintain a balance between floating rate assets and cash [48] Question: Non-owner-occupied CRE uptick - The uptick was due to one specific credit exit, with no systemic issues identified [58] Question: Fee income guidance for the year - The fee income guidance remains at $40 million to $42 million for the full year [111]

Financial Data and Key Metrics Changes - Core deposits increased by $1.3 billion year-over-year [5] - Cost of deposits reduced to 2.09% in the first quarter [6] - Net Interest Margin (NIM) increased to 2.9%, marking the fourth consecutive quarter of growth [6][13] - Adjusted EPS was $0.57, representing a 36% linked quarter increase and a 50% year-over-year increase [13] Business Line Data and Key Metrics Changes - Business loans grew by over $60 million in the first quarter and over $400 million year-over-year [7] - Loan pipeline currently stands at approximately $1.1 billion with an average yield of 7.22% [8] - Core pre-tax provision income was $46 million in the first quarter compared to $28 million a year ago [9] Market Data and Key Metrics Changes - Non-brokered deposits increased by approximately $65 million at March 31 versus year-end levels [14] - Excluding title company deposits, non-brokered deposits grew by approximately $250 million this quarter [14] Company Strategy and Development Direction - The company plans to expand into the Lakewood, New Jersey marketplace [11] - Focus on growing business loans while reducing commercial real estate (CRE) concentration [7] - Hiring efforts are aimed at enhancing both sides of the balance sheet [10] Management's Comments on Operating Environment and Future Outlook - Management remains bullish on continued NIM improvement despite uncertain rate environment [6] - Expectation of margin expansion in the second half of 2025 due to significant back book loan repricing opportunities [17][18] - Anticipated loan growth to pick up in the latter half of 2025 [19] Other Important Information - Core cash operating expenses for the first quarter were $57.9 million, excluding intangible amortization [15] - Common equity Tier one ratio increased to 11.1% and total capital ratio grew to 15.7% [16] Q&A Session Summary Question: Inquiry about loan pipeline mix - The loan pipeline consists of approximately $350 million in commercial and industrial (C&I), $185 million in owner-occupied CRE, and $250 million in healthcare [25] Question: Update on deposit growth and costs - The cost of deposits is around $2.10, with a healthy mix of demand deposits [26] Question: Credit reserve build guidance - The medium to long-term target for reserves is between 90 basis points to 1% [32] Question: Cash balance and margin opportunities - The company is managing its balance sheet for the medium to long term, with plans to utilize cash as loan growth picks up [35] Question: Non-owner occupied commercial real estate uptick - The uptick was due to one specific credit exit, with no systemic issues expected [41] Question: Competition and pricing in the region - The pricing environment is rational, with some competitors moderating their deposit pricing [68] Question: Fee income guidance for the year - The fee income guidance remains at $40 million to $42 million for the full year [83]

Financial Performance - First quarter 2025 net income available to common stockholders was $19.6 million, or $0.45 per diluted common share, compared to a net loss of $22.2 million, or $(0.54) per diluted common share in the previous quarter[1]. - Adjusted net income available to common stockholders for Q1 2025 was $24.7 million, a 42% increase from the prior quarter and a 67% increase from Q1 2024[3]. - Non-interest income for Q1 2025 was $9.6 million, a significant recovery from a loss of $33.9 million in the previous quarter[20]. - Reported net income available to common stockholders for Q1 2025 was $19,636 thousand, a significant recovery from a loss of $22,234 thousand in Q4 2024[56]. - Adjusted net income available to common stockholders (non-GAAP) rose to $24,688 thousand for Q1 2025, up from $17,417 thousand in Q4 2024, representing a 42.0% increase[56]. Asset and Liability Management - Total assets as of March 31, 2025, were $14,097,682, a decrease of 1.77% from $14,353,258 on December 31, 2024[38]. - Total liabilities decreased to $12,685,669 as of March 31, 2025, down from $12,956,741 on December 31, 2024, a decline of 2.09%[38]. - Total stockholders' equity increased to $1,412,013 as of March 31, 2025, compared to $1,396,517 on December 31, 2024, reflecting a growth of 1.11%[38]. - The company reported a total asset value of $13,759,002[49]. Loan and Deposit Trends - Total deposits increased by $717.0 million year-over-year, with core deposits rising by $1.35 billion[7]. - Non-interest-bearing checking deposits decreased to $3,245,409 as of March 31, 2025, down from $3,355,829 on December 31, 2024, representing a decline of 3.27%[38]. - Business loans reached $2,788,848 as of March 31, 2025, up from $2,726,602 on December 31, 2024, marking a growth of 2.29%[38]. - The loan-to-deposit ratio at the end of Q1 2025 was 93.6%, up from 93.0% in Q4 2024[45]. Efficiency and Profitability Metrics - The efficiency ratio improved to 63.1% in Q1 2025, compared to 105.9% in the previous quarter[23]. - The adjusted return on average assets improved to 0.77% in Q1 2025, compared to 0.56% in Q4 2024[56]. - The efficiency ratio (non-GAAP) improved to 55.8% in Q1 2025 from 58.0% in Q4 2024, indicating enhanced operational efficiency[58]. - Cash dividends paid per common share remained stable at $0.25 for Q1 2025, consistent with Q4 2024[45]. Credit Quality and Risk Management - Non-performing loans increased to $58.0 million at March 31, 2025, compared to $49.5 million at December 31, 2024[25]. - The allowance for credit losses stood at $90,455 as of March 31, 2025, compared to $88,751 on December 31, 2024, indicating a slight increase in provisions[38]. - Net charge-offs (NCOs) for Q1 2025 were $7,058 thousand, down from $10,611 thousand in Q4 2024, reflecting a decrease of 33.5%[52]. - The company anticipates potential risks including changes in interest rates and competitive pressures that may affect future performance[36]. Market Position and Leadership - Dime Community Bancshares, Inc. has over $14 billion in assets and holds the number one deposit market share among community banks on Greater Long Island[34]. - The company hired several key executives to strengthen its leadership team and market presence, including Tom Geisel and Robert Rowe[7].

Core Financial Performance - The company reported net income available to common stockholders of $19.6 million for Q1 2025, a significant recovery from a net loss of $22.2 million in Q4 2024 and an increase from $15.9 million in Q1 2024 [1][3] - Adjusted net income available to common stockholders (non-GAAP) was $24.7 million for Q1 2025, reflecting a 42% increase from the previous quarter and a 67% increase year-over-year [3] - The net interest margin (NIM) expanded by 16 basis points to 2.95% in Q1 2025 compared to 2.79% in Q4 2024 [1][9] Revenue and Expenses - Net interest income for Q1 2025 was $94.2 million, up from $91.1 million in Q4 2024 and $71.5 million in Q1 2024 [6] - Non-interest income was $9.6 million in Q1 2025, a recovery from a loss of $33.9 million in Q4 2024 [20] - Total non-interest expense increased to $65.5 million in Q1 2025 from $60.6 million in Q4 2024, with adjusted non-interest expense at $58.0 million [21][22] Loan and Deposit Growth - Total deposits increased by $717.0 million year-over-year, with core deposits rising by $1.35 billion [8] - The company’s loan portfolio stood at $10.87 billion, with business loans at $2.79 billion and a weighted average rate of 6.55% [11][12] - Loan originations for Q1 2025 were $71.5 million, a decrease from $187.5 million in Q4 2024 [15] Capital and Credit Quality - Stockholders' equity increased to $1.41 billion at the end of Q1 2025, with a Common Equity Tier 1 Ratio of 11.12% [26][44] - Non-performing loans rose to $58.0 million, up from $49.5 million in Q4 2024, with a credit loss provision of $9.6 million recorded in Q1 2025 [25] Management and Strategic Initiatives - The company has made significant hires to strengthen its executive leadership team, including Tom Geisel and Robert Rowe [8] - The CEO highlighted the company's strong start to the year in recruiting and plans to continue adding talent to gain market share [4][8]

Core Points - Dime Community Bancshares, Inc. has announced plans to expand into Lakewood, New Jersey, with the Board of Directors approving this initiative [1] - A full-service, free-standing branch location has been identified, with construction expected in the second half of 2025 and a planned opening in early 2026 [2] - The expansion aims to strengthen Dime's commitment to the Orthodox Jewish community and support the growth of its Private and Commercial Bank services [3] - Dime Community Bancshares, Inc. holds over $14 billion in assets and has the highest deposit market share among community banks in Greater Long Island [3][4]

Core Viewpoint - The market anticipates Dime Community (DCOM) will report a year-over-year increase in earnings driven by higher revenues for the quarter ending March 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Dime Community is expected to report quarterly earnings of $0.55 per share, reflecting a year-over-year increase of +44.7% [3]. - Revenues are projected to reach $99.99 million, which is a 21.9% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. - A positive Earnings ESP of +10.24% suggests analysts have recently become more optimistic about the company's earnings prospects [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - Dime Community currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat despite the positive Earnings ESP [11]. Historical Performance - In the last reported quarter, Dime Community was expected to post earnings of $0.43 per share but delivered $0.42, resulting in a surprise of -2.33% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates two times [13]. Conclusion - While Dime Community does not appear to be a strong candidate for an earnings beat, investors should consider other factors influencing stock performance ahead of the earnings release [16].