HAUPPAUGE, N.Y., Sept. 17, 2025 (GLOBE NEWSWIRE) -- Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the “Company” or “Dime”), the parent company of Dime Community Bank (the “Bank”), announced the expansion of its commercial lending platform with the addition of several seasoned banking professionals. The following individuals have joined Dime: Ryan Kent has joined as Director of Commercial Strategic Initiatives. He was previously a Senior Manager at Deloitte and prior to that a Senior Managing Director at W ...

PART I – FINANCIAL INFORMATION [Item 1. Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents Dime Community Bancshares' unaudited condensed consolidated financial statements for Q2 2025 and FY 2024, covering financial condition, operations, comprehensive income, equity, and cash flows [Consolidated Statements of Financial Condition](index=5&type=page&id=Consolidated%20Statements%20of%20Financial%20Condition) Total assets and liabilities slightly decreased, while stockholders' equity increased from net income and comprehensive income | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :------- | | Total assets | $14,207,935 | $14,353,258 | $(145,323) | -1.01% | | Total liabilities | $12,776,929 | $12,956,741 | $(179,812) | -1.39% | | Total stockholders' equity | $1,431,006 | $1,396,517 | $34,489 | 2.47% | - Cash and due from banks decreased by **$126.8 million**, while Bank Owned Life Insurance (BOLI) increased by **$102.7 million**[14](index=14&type=chunk) [Consolidated Statements of Operations](index=6&type=page&id=Consolidated%20Statements%20of%20Operations) Net income significantly increased for both periods ended June 30, 2025, driven by higher net interest income and lower interest expense 3 Months Ended June 30 | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :---------------------------------- | :---------------------------------- | :-------------------- | :------- | | Net interest income | $98,097 | $75,502 | $22,595 | 29.93% | | Provision for credit losses | $9,221 | $5,585 | $3,636 | 65.10% | | Total non-interest income | $11,595 | $11,808 | $(213) | -1.80% | | Total non-interest expense | $60,299 | $55,694 | $4,605 | 8.27% | | Net income | $29,697 | $18,479 | $11,218 | 60.71% | | Basic EPS | $0.64 | $0.43 | $0.21 | 48.84% | | Diluted EPS | $0.64 | $0.43 | $0.21 | 48.84% | 6 Months Ended June 30 | Metric | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :---------------------------------- | :---------------------------------- | :-------------------- | :------- | | Net interest income | $192,310 | $147,032 | $45,278 | 30.80% | | Provision for credit losses | $18,847 | $10,795 | $8,052 | 74.59% | | Total non-interest income | $21,228 | $22,275 | $(1,047) | -4.70% | | Total non-interest expense | $125,810 | $108,205 | $17,605 | 16.27% | | Net income | $51,155 | $36,170 | $14,985 | 41.43% | | Basic EPS | $1.09 | $0.84 | $0.25 | 29.76% | | Diluted EPS | $1.09 | $0.84 | $0.25 | 29.76% | [Consolidated Statements of Comprehensive Income](index=8&type=page&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income increased for both periods ended June 30, 2025, driven by higher net income and positive changes in unrealized gains on securities 3 Months Ended June 30 | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :---------------------------------- | :---------------------------------- | :-------------------- | :------- | | Net income | $29,697 | $18,479 | $11,218 | 60.71% | | Total other comprehensive income, net of tax | $1,108 | $2,686 | $(1,578) | -58.75% | | Total comprehensive income | $30,805 | $21,165 | $9,640 | 45.55% | 6 Months Ended June 30 | Metric | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :---------------------------------- | :---------------------------------- | :-------------------- | :------- | | Net income | $51,155 | $36,170 | $14,985 | 41.43% | | Total other comprehensive income, net of tax | $7,081 | $8,799 | $(1,718) | -19.53% | | Total comprehensive income | $58,236 | $44,969 | $13,267 | 29.50% | [Consolidated Statements of Changes in Stockholders' Equity](index=9&type=page&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' equity increased by **$34.5 million** during H1 2025 from net income and other comprehensive income, partially offset by cash dividends | Metric | January 1, 2025 (in thousands) | June 30, 2025 (in thousands) | Change (in thousands) | | :-------------------------------- | :----------------------------- | :--------------------------- | :-------------------- | | Total Stockholders' Equity | $1,396,517 | $1,431,006 | $34,489 | | Net income | - | $51,155 | $51,155 | | Other comprehensive income, net of tax | - | $7,081 | $7,081 | | Cash dividends declared to preferred stockholders | - | $(3,643) | $(3,643) | | Cash dividends declared to common stockholders | - | $(21,817) | $(21,817) | [Consolidated Statements of Cash Flows](index=11&type=page&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased for H1 2025, while cash used in investing and financing also increased, leading to an overall decrease in cash | Metric | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :---------------------------------- | :---------------------------------- | :-------------------- | :------- | | Net cash provided by operating activities | $88,483 | $43,358 | $45,125 | 104.08% | | Net cash (used in) provided by investing activities | $(92,224) | $55,718 | $(147,942) | -265.52% | | Net cash used in financing activities | $(123,076) | $(142,640) | $19,564 | -13.71% | | Decrease in cash and cash equivalents | $(126,817) | $(43,564) | $(83,253) | 191.11% | | Cash and cash equivalents, end of period | $1,156,754 | $413,983 | $742,771 | 179.45% | [Notes to Unaudited Condensed Consolidated Financial Statements](index=12&type=page&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section details disclosures and explanations for the unaudited condensed consolidated financial statements, covering accounting policies, asset/liability, equity, and financial instruments [Note 1. BASIS OF PRESENTATION](index=12&type=page&id=Note%201.%20BASIS%20OF%20PRESENTATION) Dime Community Bancshares operates as a bank holding company for Dime Community Bank, offering commercial banking and financial services in Long Island and NYC with 62 branches - The Company operates **62** branch locations throughout Long Island and New York City boroughs, with regulatory approval to open a branch in Lakewood, New Jersey[26](index=26&type=chunk) - The unaudited Consolidated Financial Statements are prepared in accordance with U.S. GAAP for interim financial information and SEC regulations[27](index=27&type=chunk) [Note 2. SUMMARY OF ACCOUNTING POLICIES](index=12&type=page&id=Note%202.%20SUMMARY%20OF%20ACCOUNTING%20POLICIES) This note affirms fair presentation and highlights new accounting standards, ASU 2023-07 and ASU 2023-09, which had no material effect - ASU 2023-07, effective January 1, 2025, for interim periods, requires disclosure of significant expense categories for each reportable segment but did not materially affect the Company's consolidated financial statements[30](index=30&type=chunk) - ASU 2023-09, effective January 1, 2025, for annual periods, enhances income tax disclosures, particularly for rate reconciliation and taxes paid, and is not anticipated to have a material effect[31](index=31&type=chunk)[33](index=33&type=chunk) [Note 3. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)](index=14&type=page&id=Note%203.%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20INCOME%20(LOSS)) Accumulated other comprehensive loss improved from **$(45.0) million** to **$(37.9) million** at June 30, 2025, driven by net other comprehensive income from securities and pension obligations Component Balances | Component (in thousands) | Balance as of Jan 1, 2025 | Net OCI (Loss) during period | Balance as of June 30, 2025 | | :----------------------- | :------------------------ | :--------------------------- | :-------------------------- | | Securities | $(43,767) | $9,981 | $(33,786) | | Defined Benefit Plans | $(7,499) | $3,465 | $(4,034) | | Derivatives | $6,248 | $(6,365) | $(117) | | Total AOCI (Loss) | $(45,018) | $7,081 | $(37,937) | Other Comprehensive Income, Net of Tax | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | | Net change in unrealized gain on securities, net of tax | $9,981 | $5,809 | | Net change in pension and other postretirement obligations, net of tax | $3,465 | $270 | | Net change in unrealized (loss) gain on derivatives, net of tax | $(6,365) | $2,720 | | Other comprehensive income, net of tax | $7,081 | $8,799 | [Note 4. EARNINGS PER COMMON SHARE](index=16&type=page&id=Note%204.%20EARNINGS%20PER%20COMMON%20SHARE) Basic and diluted EPS for common stock increased significantly for both periods ended June 30, 2025, reflecting higher net income available to common stockholders 3 Months Ended June 30 | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change | | :-------------------------------- | :--------------------------- | :--------------------------- | :----- | | Net income available to common stockholders (in thousands) | $27,876 | $16,657 | $11,219 | | Weighted-average common shares outstanding | 43,030,023 | 38,329,485 | 4,700,538 | | Basic EPS | $0.64 | $0.43 | $0.21 | | Diluted EPS | $0.64 | $0.43 | $0.21 | 6 Months Ended June 30 | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change | | :-------------------------------- | :--------------------------- | :--------------------------- | :----- | | Net income available to common stockholders (in thousands) | $47,512 | $32,527 | $14,985 | | Weighted-average common shares outstanding | 42,989,581 | 38,292,253 | 4,697,328 | | Basic EPS | $1.09 | $0.84 | $0.25 | | Diluted EPS | $1.09 | $0.84 | $0.25 | [Note 5. PREFERRED STOCK](index=17&type=page&id=Note%205.%20PREFERRED%20STOCK) Dime Community Bancshares has **5,299,200** shares of **5.50%** Fixed-Rate Non-Cumulative Perpetual Preferred Stock, Series A, outstanding, callable on or after June 15, 2025 - The Company has **5,299,200** shares of **5.50%** Fixed-Rate Non-Cumulative Perpetual Preferred Stock, Series A, outstanding, with an aggregate liquidation preference of **$132.5 million**[41](index=41&type=chunk) - Dividends are payable quarterly at a fixed rate of **5.50%** per annum. The Preferred Stock is perpetual and callable at **$25.00** per share on or after June 15, 2025, subject to regulatory approval[42](index=42&type=chunk) [Note 6. SECURITIES](index=18&type=page&id=Note%206.%20SECURITIES) The Company's securities portfolio saw a slight increase in available-for-sale fair value and a decrease in held-to-maturity, with unrealized losses from interest rate changes and an allowance for credit losses on one corporate security | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Securities available-for-sale, at fair value | $703,461 | $690,693 | | Securities held-to-maturity, at amortized cost | $625,188 | $637,339 | | Total securities | $1,328,649 | $1,328,032 | - Gross unrealized losses on available-for-sale securities totaled **$(34.4) million** at June 30, 2025, primarily due to changes in interest rates, not credit quality[43](index=43&type=chunk)[50](index=50&type=chunk) - An allowance for credit losses of **$1.8 million** was recorded for one available-for-sale corporate security due to non-compliance with financial covenants[43](index=43&type=chunk)[51](index=51&type=chunk) [Note 7. LOANS HELD FOR INVESTMENT, NET](index=21&type=page&id=Note%207.%20LOANS%20HELD%20FOR%20INVESTMENT,%20NET) Loans held for investment, net, slightly decreased to **$10.78 billion** at June 30, 2025, while the allowance for credit losses increased to **$93.19 million**, with higher non-accrual loans | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total loans held for investment, net | $10,777,683 | $10,783,192 | | Allowance for credit losses | $93,189 | $88,751 | | Non-accrual loans | $53,214 | $49,479 | | Provision for credit losses (6 months) | $16,901 | $10,448 | - Business loans and non-owner-occupied commercial real estate loans saw the largest increases in non-accrual status[55](index=55&type=chunk)[202](index=202&type=chunk) - Loan modifications for borrowers experiencing financial difficulty totaled **$113.6 million** for the six months ended June 30, 2025, with significant payment delays and interest rate reductions[61](index=61&type=chunk) [Note 8. LEASES](index=30&type=page&id=Note%208.%20LEASES) The Company's operating lease liabilities totaled **$47.56 million** at June 30, 2025, with a **4.2-year** weighted-average remaining lease term and **$7.34 million** in costs for H1 | Metric (in thousands) | June 30, 2025 | | :-------------------- | :------------ | | Operating lease liabilities | $47,559 | | Total undiscounted lease payments | $50,915 | | Weighted average remaining lease term | 4.2 years | | Weighted average discount rate | 2.94 % | | Operating lease cost (6 months) | $7,341 | [Note 9. DERIVATIVES AND HEDGING ACTIVITIES](index=30&type=page&id=Note%209.%20DERIVATIVES%20AND%20HEDGING%20ACTIVITIES) The Company uses interest rate swaps for fair value, cash flow, and freestanding derivatives to manage interest rate risk, with substantial notional amounts and fluctuating fair values | Derivative Type (in thousands) | June 30, 2025 Notional Amount | June 30, 2025 Fair Value Assets | June 30, 2025 Fair Value Liabilities | | :----------------------------- | :------------------------------ | :------------------------------ | :------------------------------- | | Cash flow hedges | $150,000 | $5,277 | $255 | | Fair value hedges | $700,000 | - | $151 | | Freestanding derivatives | $1,676,072 | $85,689 | $85,689 | | Risk participations | $140,626 | - | $15 | - The Company uses interest rate swaps for fair value hedges (notional **$700 million**), cash flow hedges (notional **$150 million** assets, **$450 million** liabilities), and freestanding derivatives (notional **$1.68 billion**)[75](index=75&type=chunk) - For the six months ended June 30, 2025, cash flow hedges resulted in a **$(12.97) million** loss recognized in OCI and a **$(3.79) million** loss reclassified into interest expense[89](index=89&type=chunk) [Note 10. FAIR VALUE OF FINANCIAL INSTRUMENTS](index=36&type=page&id=Note%2010.%20FAIR%20VALUE%20OF%20FINANCIAL%20INSTRUMENTS) The Company measures financial instruments at fair value using a three-level hierarchy, with most securities and derivatives using Level 2 inputs, and individually evaluated loans using Level 3 inputs, totaling **$2.3 million** Financial Asset Fair Value Measurements | Financial Asset (in thousands) | June 30, 2025 Total Fair Value | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | | :----------------------------- | :----------------------------- | :------------- | :------------- | :------------- | | Securities available-for-sale | $703,461 | $0 | $703,461 | $0 | | Derivative – cash flow hedges | $5,277 | $0 | $5,277 | $0 | | Derivative – freestanding derivatives, net | $85,689 | $0 | $85,689 | $0 | | Individually evaluated loans (non-recurring) | $2,330 | $0 | $0 | $2,330 | - All securities available-for-sale and derivatives are measured at fair value on a recurring basis, predominantly using Level 2 inputs (observable market data)[104](index=104&type=chunk) - Individually evaluated loans, measured at fair value on a non-recurring basis, had a carrying amount of **$2.3 million** at June 30, 2025, utilizing Level 3 (unobservable) inputs[106](index=106&type=chunk) [Note 11. OTHER INTANGIBLE ASSETS](index=41&type=page&id=Note%2011.%20OTHER%20INTANGIBLE%20ASSETS) Other intangible assets, net, decreased to **$3.41 million** at June 30, 2025, from **$3.90 million** at December 31, 2024, due to **$487 thousand** in amortization expense | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Gross carrying value | $10,204 | $10,204 | | Accumulated amortization | $(6,795) | $(6,308) | | Net carrying amount | $3,409 | $3,896 | - Amortization expense for intangible assets was **$487 thousand** for the six months ended June 30, 2025, compared to **$592 thousand** for the same period in 2024[114](index=114&type=chunk) [Note 12. FHLBNY ADVANCES](index=43&type=page&id=Note%2012.%20FHLBNY%20ADVANCES) FHLBNY advances decreased by **$100.0 million** to **$508.0 million** at June 30, 2025, with **$1.75 billion** in remaining borrowing capacity and no prepayment penalties | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total FHLBNY advances | $508,000 | $608,000 | | Remaining borrowing capacity | $1,750,000 | $1,840,000 | | Weighted average interest rate | 4.38% | 4.58% | - The Bank reduced FHLBNY advances by **$100.0 million** during the six months ended June 30, 2025, compared to a **$680.0 million** reduction in the prior year[171](index=171&type=chunk) [Note 13. SUBORDINATED DEBENTURES](index=43&type=page&id=Note%2013.%20SUBORDINATED%20DEBENTURES) Subordinated debentures totaled **$272.4 million** at June 30, 2025, with interest expense significantly increasing for both periods due to new issuances and higher rates | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Subordinated debentures, net | $272,414 | $272,325 | | Interest expense (3 months) | $4,301 | $2,604 | | Interest expense (6 months) | $8,603 | $5,157 | - The Company issued **$74.8 million** in **9.00%** fixed-to-floating rate subordinated notes due 2034 in June/July 2024[120](index=120&type=chunk)[123](index=123&type=chunk) [Note 14. RETIREMENT AND POSTRETIREMENT PLANS](index=45&type=page&id=Note%2014.%20RETIREMENT%20AND%20POSTRETIREMENT%20PLANS) The Company terminated its defined-benefit pension plans by March 31, 2025, resulting in a **$7.23 million** settlement loss for H1 2025 Benefit Costs | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | | Total benefit cost (pension plans) | $7,272 | $(635) | | 401(k) Plan expense | $1,900 | $1,700 | - Both the Employee Retirement Plan and BNB Bank Pension Plan were terminated effective December 31, 2023, with the BNB Bank Pension Plan termination completed by March 31, 2025[128](index=128&type=chunk)[129](index=129&type=chunk) - A settlement loss of **$7.23 million** was recognized for the BNB Bank Pension Plan during the six months ended June 30, 2025[130](index=130&type=chunk) [Note 15. STOCK-BASED COMPENSATION](index=48&type=page&id=Note%2015.%20STOCK-BASED%20COMPENSATION) The Company uses stock option, restricted stock (RSAs), and performance-based share awards (PSAs) for compensation, with unrecognized costs of **$9.7 million** for RSAs and **$4.5 million** for PSAs Compensation Expense | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | | RSA compensation expense | $2,664 | $2,877 | | PSA compensation expense | $1,011 | $149 | | Total stock-based compensation | $3,675 | $3,026 | - As of June 30, 2025, **26,995** stock options were outstanding and vested, with a weighted-average exercise price of **$35.39**[134](index=134&type=chunk) - Unrecognized compensation cost for unvested RSAs is **$9.7 million** (weighted-average period of **2.2 years**) and for PSAs is **$4.5 million** (weighted-average period of **2.0 years**)[138](index=138&type=chunk)[140](index=140&type=chunk) [Note 16. INCOME TAXES](index=51&type=page&id=Note%2016.%20INCOME%20TAXES) The Company's effective tax rate for Q2 2025 was **26.1%** (**29.0%** in 2024) and for H1 was **25.7%** (**28.1%** in 2024), with no significant unusual income tax items 3 Months Ended June 30 | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | | Income tax expense (in thousands) | $10,475 | $7,552 | | Effective tax rate | 26.1% | 29.0% | 6 Months Ended June 30 | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | | Income tax expense (in thousands) | $17,726 | $14,137 | | Effective tax rate | 25.7% | 28.1% | [Note 17. SEGMENT REPORTING](index=51&type=page&id=Note%2017.%20SEGMENT%20REPORTING) The Company operates as a single reportable segment, 'Community Banking,' with all activities interrelated and performance evaluated based on consolidated financial results - The Company's Chief Executive Officer, as CODM, determines the Company operates as one reportable segment: "Community Banking"[142](index=142&type=chunk) - All revenues are derived from banking operations within the United States, and no single customer accounted for more than **10%** of consolidated revenue[146](index=146&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition and operating results, highlighting key trends, accounting estimates, liquidity, capital, and asset quality [Overview](index=53&type=page&id=Overview) Dime Community Bancshares functions primarily as a bank holding company for Dime Community Bank, with financial performance dependent on net interest income, non-interest income, and controlled non-interest expenses - The Holding Company's operations are minimal, primarily serving as the owner of Dime Community Bank, and is dependent on dividends from the Bank, its own earnings, additional capital raised, and borrowings[147](index=147&type=chunk) - The Bank's results are primarily driven by net interest income (interest income on loans/investments minus interest expense on deposits/borrowings) and non-interest income from various fees and services[147](index=147&type=chunk) [Recent Developments](index=53&type=page&id=Recent%20Developments) The One Big Beautiful Bill Act (OBBBA) was signed on July 4, 2025, making bonus depreciation permanent, with an immaterial impact expected on the Company's Q3 2025 financial statements - The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025, making bonus depreciation permanent[148](index=148&type=chunk) - The Company anticipates an immaterial impact on its September 30, 2025, financial statements due to the deferred tax effects of the OBBBA[148](index=148&type=chunk) [Selected Financial Highlights and Other Data](index=54&type=page&id=Selected%20Financial%20Highlights%20and%20Other%20Data) Key financial highlights for Q2 2025 show improved profitability, including higher EPS, return on average assets and equity, and net interest margin, alongside increased non-performing loans and net charge-offs | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Reported EPS (Diluted) | $0.64 | $0.43 | $1.09 | $0.84 | | Return on average assets | 0.85% | 0.55% | 0.74% | 0.53% | | Return on average equity | 8.28% | 5.88% | 7.16% | 5.78% | | Net interest margin | 2.98% | 2.41% | 2.96% | 2.31% | | Non-performing loans (in thousands) | $53,214 | $24,843 | $53,214 | $24,843 | | Net charge-offs (in thousands) | $5,405 | $3,640 | $12,463 | $4,379 | | Allowance for credit losses/Total loans | 0.86% | 0.72% | 0.86% | 0.72% | [Critical Accounting Estimates](index=54&type=page&id=Critical%20Accounting%20Estimates) The Company's critical accounting estimates involve significant management judgment, particularly in determining the allowance for credit losses on loans held for investment, relying on complex models and forecasts - The allowance for credit losses on loans held for investment is a critical accounting estimate, requiring significant management judgment due to inherent uncertainties[152](index=152&type=chunk)[155](index=155&type=chunk) - The estimation process involves a model comparing amortized cost to expected cash flows, incorporating assumptions on probability of default, loss given default, economic forecasts, and qualitative adjustments[155](index=155&type=chunk)[156](index=156&type=chunk) - Changes in economic, market, or other conditions, or regulatory reviews, could necessitate future additions or reductions to the allowance, materially impacting net income[160](index=160&type=chunk)[161](index=161&type=chunk) [Liquidity and Capital Resources](index=58&type=page&id=Liquidity%20and%20Capital%20Resources) The Company manages liquidity through deposits, loan payments, and FHLBNY advances, with deposits increasing by **$54.0 million** and FHLBNY advances decreasing by **$100.0 million**, while maintaining substantial borrowing capacity and remaining well-capitalized Capital Ratios | Capital Ratio | Company June 30, 2025 | Bank June 30, 2025 | Basel III Minimum | "Well Capitalized" Minimum | | :---------------------- | :-------------------- | :----------------- | :---------------- | :------------------------- | | Tier 1 common equity ratio | 11.2% | 14.2% | 4.5% | 6.5% | | Tier 1 risk-based capital ratio | 12.3% | 14.2% | 6.0% | 8.0% | | Total risk-based capital ratio | 15.8% | 15.1% | 8.0% | 10.0% | | Tier 1 leverage ratio | 9.4% | 10.8% | 4.0% | 5.0% | - Total deposits (including mortgage escrow deposits) increased by **$54.0 million** during the six months ended June 30, 2025, primarily from non-interest-bearing checking, money market accounts, and CDs[168](index=168&type=chunk) - FHLBNY advances were reduced by **$100.0 million** during the six months ended June 30, 2025, with **$1.75 billion** in remaining borrowing capacity[171](index=171&type=chunk) [Contractual Obligations](index=60&type=page&id=Contractual%20Obligations) The Bank's contractual obligations include FHLBNY advances, short-term borrowings, subordinated debt, and lease payments for branches and equipment, all with fixed contractual interest rates - The Bank's contractual obligations include FHLBNY advances, short-term borrowings, subordinated debt, and rental payments under leases for branches and equipment[178](index=178&type=chunk) [Off-Balance Sheet Arrangements](index=62&type=page&id=Off-Balance%20Sheet%20Arrangements) The Company has off-balance sheet arrangements primarily consisting of outstanding commitments to extend credit to borrowers, totaling **$136.9 million**, and a reimbursement agreement with FHLMC with a maximum exposure of **$27.9 million** - Outstanding commitments to extend credit to borrowers totaled **$136.9 million** at June 30, 2025[179](index=179&type=chunk) - A reimbursement agreement with FHLMC related to a 2017 loan securitization has a maximum exposure of **$27.9 million** for defaulted loans[180](index=180&type=chunk) [Concentrations of Lending Activities](index=62&type=page&id=Concentrations%20of%20Lending%20Activities) Non-owner occupied commercial real estate and multifamily residential/residential mixed-use loans constitute **63%** of total loans held for investment, with heightened risk management practices to mitigate associated risks Loan Portfolio Composition | Loan Type | June 30, 2025 Balance (in thousands) | Weighted Average LTV | | :-------------------------------- | :----------------------------------- | :------------------- | | Total investor commercial real estate | $3,128,120 | 55% | | Total multifamily residential and residential mixed-use | $3,693,425 | 57% | - Non-owner occupied commercial real estate and multifamily residential/residential mixed-use loans represent **63%** of total loans held for investment at June 30, 2025[181](index=181&type=chunk) - The Company uses heightened risk management practices, including board oversight, portfolio management, underwriting standards, market analysis, and stress testing, to manage these concentrations[182](index=182&type=chunk)[184](index=184&type=chunk) [Asset Quality](index=67&type=page&id=Asset%20Quality) The Company maintains robust asset quality monitoring, with monthly reviews of delinquent loans and a policy of discontinuing interest accrual for loans 90 days or more past due [General](index=67&type=page&id=General) The Company does not originate or purchase subprime loans and evaluates impaired securities as discussed in Note 6 - The Company does not originate or purchase subprime loans[195](index=195&type=chunk) [Monitoring and Collection of Delinquent Loans](index=67&type=page&id=Monitoring%20and%20Collection%20of%20Delinquent%20Loans) Management reviews delinquent loans monthly, sending automated late notices and attempting repayment schedules, generally discontinuing interest accrual for loans 90 days or more past due - Delinquent loans are reviewed monthly, with automated late notices sent after **10-15 days** past due[196](index=196&type=chunk)[197](index=197&type=chunk) - Interest accrual is generally discontinued for loans **90 days** or more past due, or when full payment is not expected[198](index=198&type=chunk) - Foreclosure proceedings are initiated on non-accrual real estate loans, with updated appraisals to calculate potential collateral shortfalls[199](index=199&type=chunk) [Non-accrual Loans](index=69&type=page&id=Non-accrual%20Loans) Non-accrual loans within the held-for-investment portfolio increased to **$53.2 million** at June 30, 2025, from **$49.5 million**, primarily driven by non-owner-occupied commercial real estate and business loans Non-accrual Loans by Type | Loan Type (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Business loans | $18,007 | $22,624 | | One-to-four family residential and cooperative/condominium apartment | $1,642 | $3,213 | | Non-owner-occupied commercial real estate | $32,908 | $22,960 | | ADC | $657 | $657 | | Total non-accrual loans | $53,214 | $49,479 | Non-accrual Ratios | Ratio | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Total non-accrual loans to total loans | 0.49% | 0.46% | | Total non-performing assets to total assets | 0.37% | 0.34% | [Loan Restructurings](index=70&type=page&id=Loan%20Restructurings) The Company evaluates loan modifications to borrowers experiencing financial difficulty to determine if they result in a new loan or a continuation of an existing one, with losses estimated within the allowance for credit losses - Loan modifications for borrowers experiencing financial difficulty are evaluated to determine if they constitute a new loan or a continuation of an existing one[203](index=203&type=chunk) - Allowance for credit losses for restructured loans is measured on a pooled basis for accrual status and certain non-accrual loans, or individually for collateral-dependent non-accrual loans[204](index=204&type=chunk) [OREO](index=70&type=page&id=OREO) Property acquired through foreclosure is classified as OREO and carried at the lower of fair value or book balance, with no carrying value or provision for losses at June 30, 2025, or December 31, 2024 - OREO is carried at the lower of fair value or book balance, with write-downs recognized through a provision in non-interest expense[205](index=205&type=chunk) - There was no carrying value of OREO properties and no provision for losses on OREO properties for the six months ended June 30, 2025 and 2024[206](index=206&type=chunk) [Past Due Loans](index=70&type=page&id=Past%20Due%20Loans) Loans past due 30 to 59 days increased to **$28.1 million** at June 30, 2025, from **$10.3 million**, while 60 to 89 days past due increased to **$33.4 million** from **$31.3 million**, with no accruing loans 90 days or more past due | Delinquency Period (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | 30 to 59 Days Past Due | $28,148 | $10,330 | | 60 to 89 Days Past Due | $33,352 | $31,313 | | Accruing Loans 90 Days or More Past Due | $0 | $0 | [Reserve for Unfunded Loan Commitments](index=72&type=page&id=Reserve%20for%20Unfunded%20Loan%20Commitments) The Bank's reserve for unfunded loan commitments increased slightly to **$2.8 million** at June 30, 2025, from **$2.7 million**, with changes recognized in the provision for credit losses | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Reserve for unfunded loan commitments | $2,800 | $2,700 | [Allowance for Credit Losses](index=72&type=page&id=Allowance%20for%20Credit%20Losses) The provision for credit losses for H1 2025 was **$18.8 million**, a significant increase from **$10.8 million**, primarily due to updates in macroeconomic forecasts and loss driver models | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | | Provision for credit losses | $18,847 | $10,795 | | Allowance for credit losses balance at end of period | $93,189 | $77,812 | | Allowance for credit losses to total loans | 0.86% | 0.72% | | Allowance for credit losses to total non-performing loans | 175.12 | 313.21 | - The **$18.8 million** provision for credit losses for the six months ended June 30, 2025, included **$1.8 million** for an available-for-sale corporate security and was primarily driven by macroeconomic forecast updates[211](index=211&type=chunk) [Comparison of Financial Condition at June 30, 2025 and December 31, 2024](index=74&type=page&id=Comparison%20of%20Financial%20Condition%20at%20June%2030,%202025%20and%20December%2031,%202024) Total assets decreased by **$145.3 million**, primarily due to reductions in cash and derivative assets, partially offset by increased BOLI, while total liabilities decreased by **$179.8 million** and stockholders' equity increased by **$34.5 million** | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------- | :------------ | :---------------- | :----- | | Total assets | $14,207,935 | $14,353,258 | $(145,323) | | Cash and due from banks | $1,156,754 | $1,283,571 | $(126,817) | | BOLI | $393,345 | $290,665 | $102,680 | | Total liabilities | $12,776,929 | $12,956,741 | $(179,812) | | FHLBNY advances | $508,000 | $608,000 | $(100,000) | | Total stockholders' equity | $1,431,006 | $1,396,517 | $34,489 | [Comparison of Operating Results for the Three Months Ended June 30, 2025 and 2024](index=74&type=page&id=Comparison%20of%20Operating%20Results%20for%20the%20Three%20Months%20Ended%20June%2030,%202025%20and%202024) Net income for Q2 2025 increased significantly to **$29.7 million** from **$18.5 million**, driven by a **$22.6 million** increase in net interest income from higher interest income and lower interest expense [Analysis of Net Interest Income](index=75&type=page&id=Analysis%20of%20Net%20Interest%20Income) Net interest income increased by **$22.6 million** to **$98.1 million**, and net interest margin rose to **2.98%** from **2.41%**, due to increased average interest-earning assets and a favorable shift in interest rates | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change | | :-------------------- | :--------------------------- | :--------------------------- | :----- | | Net interest income (in thousands) | $98,097 | $75,502 | $22,595 | | Net interest margin | 2.98% | 2.41% | 0.57% | | Net interest rate spread | 1.99% | 1.28% | 0.71% | | Average interest-earning assets (in thousands) | $13,195,116 | $12,624,556 | $570,560 | [Rate/Volume Analysis](index=76&type=page&id=Rate/Volume%20Analysis) The increase in net interest income was primarily driven by a **$10.8 million** increase due to volume and an **$11.8 million** increase due to rate changes, with interest income benefiting from volume and rate increases | Component (in thousands) | Increase / (Decrease) Due to Volume | Increase / (Decrease) Due to Rate | Total Increase / (Decrease) | | :----------------------- | :---------------------------------- | :-------------------------------- | :-------------------------- | | Total interest-earning assets | $9,974 | $(1,842) | $8,132 | | Total interest-bearing liabilities | $(811) | $(13,652) | $(14,463) | | Net change in net interest income | $10,785 | $11,810 | $22,595 | [Interest Income](index=76&type=page&id=Interest%20Income) Interest income increased by **$8.1 million** to **$167.5 million**, primarily due to higher income from other short-term investments, business loans, securities, and one-to-four family loans | Source (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change | | :-------------------- | :--------------------------- | :--------------------------- | :----- | | Total interest income | $167,550 | $159,418 | $8,132 | | Other short-term investments | $10,749 | $4,412 | $6,337 | | Business loans | $46,593 | $42,933 | $3,660 | | Securities | $11,353 | $7,907 | $3,446 | | One-to-four family residential and coop/condo apartment | $11,532 | $9,968 | $1,564 | | Multifamily residential and residential mixed-use | $42,462 | $45,775 | $(3,313) | | Non-owner-occupied commercial real estate | $41,822 | $44,728 | $(2,906) | [Interest Expense](index=76&type=page&id=Interest%20Expense) Interest expense decreased by **$14.4 million** to **$69.5 million**, mainly due to a **$12.7 million** reduction in deposit interest expense and a **$2.4 million** decrease in FHLBNY advances interest expense | Source (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change | | :-------------------- | :--------------------------- | :--------------------------- | :----- | | Total interest expense | $69,453 | $83,916 | $(14,463) | | Deposits and escrow | $60,181 | $72,878 | $(12,697) | | FHLBNY advances | $4,053 | $6,429 | $(2,376) | | Derivative cash collateral | $918 | $2,005 | $(1,087) | | Subordinated debt | $4,301 | $2,604 | $1,697 | [Provision for Credit Losses](index=78&type=page&id=Provision%20for%20Credit%20Losses) The provision for credit losses increased to **$9.2 million** from **$5.6 million**, primarily due to updates in macroeconomic forecasts and loss driver models | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change | | :-------------------- | :--------------------------- | :--------------------------- | :----- | | Provision for credit losses | $9,221 | $5,585 | $3,636 | [Non-Interest Income](index=78&type=page&id=Non-Interest%20Income) Non-interest income slightly decreased to **$11.6 million** from **$11.8 million**, mainly due to a **$3.7 million** reduction in gains from asset sales, partially offset by a **$1.7 million** increase in BOLI income | Source (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change | | :-------------------- | :--------------------------- | :--------------------------- | :----- | | Total non-interest income | $11,595 | $11,808 | $(213) | | Gain on sale of other assets | $0 | $3,695 | $(3,695) | | BOLI income | $4,186 | $2,484 | $1,702 | [Non-Interest Expense](index=78&type=page&id=Non-Interest%20Expense) Non-interest expense increased by **$4.6 million** to **$60.3 million**, primarily due to a **$4.0 million** increase in salaries and employee benefits, with non-interest expense as a percentage of average assets also increasing | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change | | :-------------------- | :--------------------------- | :--------------------------- | :----- | | Total non-interest expense | $60,299 | $55,694 | $4,605 | | Salaries and employee benefits | $36,218 | $32,184 | $4,034 | | Non-interest expense to average assets | 1.72% | 1.66% | 0.06% | [Income Tax Expense](index=78&type=page&id=Income%20Tax%20Expense) Income tax expense increased to **$10.5 million** from **$7.6 million**, while the effective tax rate decreased to **26.1%** from **29.0%** | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change | | :-------------------- | :--------------------------- | :--------------------------- | :----- | | Income tax expense | $10,475 | $7,552 | $2,923 | | Effective tax rate | 26.1% | 29.0% | -2.9% | [Comparison of Operating Results for the Six Months Ended June 30, 2025 and 2024](index=78&type=page&id=Comparison%20of%20Operating%20Results%20for%20the%20Six%20Months%20Ended%20June%2030,%202025%20and%202024) Net income for H1 2025 increased to **$51.2 million** from **$36.2 million**, driven by a **$45.3 million** increase in net interest income, despite increased credit loss provision and non-interest expense [Analysis of Net Interest Income](index=80&type=page&id=Analysis%20of%20Net%20Interest%20Income) Net interest income increased by **$45.3 million** to **$192.3 million**, and net interest margin rose to **2.96%** from **2.31%**, due to increased average interest-earning assets and a favorable shift in interest rates | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change | | :-------------------- | :--------------------------- | :--------------------------- | :----- | | Net interest income (in thousands) | $192,310 | $147,032 | $45,278 | | Net interest margin | 2.96% | 2.31% | 0.65% | | Net interest rate spread | 1.97% | 1.21% | 0.76% | | Average interest-earning assets (in thousands) | $13,079,859 | $12,820,156 | $259,703 | [Rate/Volume Analysis](index=81&type=page&id=Rate/Volume%20Analysis) The **$45.3 million** increase in net interest income was driven by a **$20.2 million** increase due to volume and a **$25.1 million** increase due to rate changes, with interest income benefiting from volume and rate increases | Component (in thousands) | Increase / (Decrease) Due to Volume | Increase / (Decrease) Due to Rate | Total Increase / (Decrease) | | :----------------------- | :---------------------------------- | :-------------------------------- | :-------------------------- | | Total interest-earning assets | $11,388 | $(2,400) | $8,988 | | Total interest-bearing liabilities | $(8,827) | $(27,463) | $(36,290) | | Net change in net interest income | $20,215 | $25,063 | $45,278 | [Interest Income](index=81&type=page&id=Interest%20Income) Interest income increased by **$9.0 million** to **$329.4 million**, primarily from business loans, securities, other short-term investments, and one-to-four family loans | Source (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change | | :-------------------- | :--------------------------- | :--------------------------- | :----- | | Total interest income | $329,415 | $320,427 | $8,988 | | Business loans | $91,640 | $82,157 | $9,483 | | Securities | $22,676 | $15,787 | $6,889 | | Other short-term investments | $18,586 | $13,976 | $4,610 | | One-to-four family residential and coop/condo apartment | $22,601 | $19,738 | $2,863 | | Multifamily residential and residential mixed-use | $84,791 | $91,794 | $(7,003) | | Non-owner-occupied commercial real estate | $83,148 | $89,504 | $(6,356) | | ADC | $5,915 | $7,330 | $(1,415) | [Interest Expense](index=83&type=page&id=Interest%20Expense) Interest expense decreased by **$36.3 million** to **$137.1 million**, mainly due to reductions in deposit interest expense and FHLBNY advances interest expense, partially offset by a **$3.4 million** increase in subordinated debt interest expense | Source (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change | | :-------------------- | :--------------------------- | :--------------------------- | :----- | | Total interest expense | $137,105 | $173,395 | $(36,290) | | Deposits and escrow | $118,255 | $145,947 | $(27,692) | | FHLBNY advances | $8,119 | $18,572 | $(10,453) | | Derivative cash collateral | $2,115 | $3,718 | $(1,603) | | Subordinated debt | $8,603 | $5,157 | $3,446 | [Provision for Credit Losses](index=83&type=page&id=Provision%20for%20Credit%20Losses) The provision for credit losses increased to **$18.8 million** from **$10.8 million**, primarily due to updates in macroeconomic forecasts and loss driver models | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change | | :-------------------- | :--------------------------- | :--------------------------- | :----- | | Provision for credit losses | $18,847 | $10,795 | $8,052 | [Non-Interest Income](index=83&type=page&id=Non-Interest%20Income) Non-interest income slightly decreased to **$21.2 million** from **$22.3 million**, mainly due to a **$6.7 million** reduction in gains on sale of Bank's premises, partially offset by a **$3.2 million** increase in BOLI income | Source (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change | | :-------------------- | :--------------------------- | :--------------------------- | :----- | | Total non-interest income | $21,228 | $22,275 | $(1,047) | | Gain on sale of other assets | $0 | $6,663 | $(6,663) | | BOLI income | $8,179 | $4,945 | $3,234 | [Non-Interest Expense](index=83&type=page&id=Non-Interest%20Expense) Non-interest expense increased by **$17.6 million** to **$125.8 million**, primarily due to a **$7.6 million** increase in salaries and employee benefits and a **$7.2 million** pension settlement loss | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change | | :-------------------- | :--------------------------- | :--------------------------- | :----- | | Total non-interest expense | $125,810 | $108,205 | $17,605 | | Salaries and employee benefits | $71,869 | $64,221 | $7,648 | | Loss due to pension settlement | $7,231 | $0 | $7,231 | | Non-interest expense to average assets | 1.81% | 1.59% | 0.22% | [Income Tax Expense](index=83&type=page&id=Income%20Tax%20Expense) Income tax expense increased to **$17.7 million** from **$14.1 million**, while the effective tax rate decreased to **25.7%** from **28.1%** | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change | | :-------------------- | :--------------------------- | :--------------------------- | :----- | | Income tax expense | $17,726 | $14,137 | $3,589 | | Effective tax rate | 25.7% | 28.1% | -2.4% | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=83&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The Company's primary market risk is interest rate risk, monitored through EVE and income simulation analyses, showing improved EVE and moderate changes in net interest income under various rate shock scenarios [General](index=83&type=page&id=General) The Company's largest market risk is interest rate risk; it is not subject to foreign currency exchange or commodity price risk, and no derivative instruments requiring bifurcation were used to hedge interest rate or market risk - The Company's largest market risk is interest rate risk; it is not subject to foreign currency exchange or commodity price risk[259](index=259&type=chunk) - No transactions involving derivative instruments requiring bifurcation were conducted to hedge interest rate or market risk during the six months ended June 30, 2025[259](index=259&type=chunk) [Interest Rate Risk Exposure Analysis](index=83&type=page&id=Interest%20Rate%20Risk%20Exposure%20Analysis) The Company assesses interest rate risk using EVE and income simulation models, with EVE increasing marginally to **$1.80 billion** at June 30, 2025, and income simulation projecting moderate changes in net interest income under various rate shock scenarios [Economic Value of Equity ("EVE") Analysis](index=83&type=page&id=Economic%20Value%20of%20Equity%20(%22EVE%22)%20Analysis) The Company's Pre-Shock Scenario EVE increased marginally from **$1.76 billion** to **$1.80 billion** at June 30, 2025, primarily due to an increase in the value of the Bank's loan and investment portfolios | Rate Shock Scenario | June 30, 2025 EVE (in thousands) | Percentage Change | | :------------------ | :------------------------------- | :---------------- | | +200 Basis Points | $1,959,621 | 9.1% | | +100 Basis Points | $1,914,186 | 6.5% | | Pre-Shock Scenario | $1,796,914 | — | | -100 Basis Points | $1,630,725 | (9.2)% | | -200 Basis Points | $1,392,212 | (22.5)% | - Pre-Shock Scenario EVE increased from **$1.76 billion** at December 31, 2024, to **$1.80 billion** at June 30, 2025, driven by increased value in loan and investment portfolios[266](index=266&type=chunk) [Income Simulation Analysis](index=86&type=page&id=Income%20Simulation%20Analysis) Net interest income simulation projects a **1.7%** increase in Year-One for a gradual **+200 basis point** rate change and a **5.9%** increase for an instantaneous **+200 basis point** shock Gradual Change in Interest Rates | Gradual Change in Interest rates of: | Year-One % Change in Net Interest Income | Year-Two % Change in Net Interest Income | | :----------------------------------- | :--------------------------------------- | :--------------------------------------- | | +200 Basis Points | 1.7% | 7.4% | | +100 Basis Points | 0.9% | 3.9% | | -100 Basis Points | 0.8% | (1.3)% | | -200 Basis Points | 1.0% | (4.2)% | Instantaneous Rate Shock Scenarios | Instantaneous Rate Shock Scenarios | Year-One % Change in Net Interest Income | Year-Two % Change in Net Interest Income | | :--------------------------------- | :--------------------------------------- | :--------------------------------------- | | +200 Basis Points | 5.9% | 10.7% | | +100 Basis Points | 3.1% | 5.6% | | -100 Basis Points | (0.6)% | (3.3)% | | -200 Basis Points | (2.4)% | (8.7)% | [Item 4. Controls and Procedures](index=87&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the Company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the quarter - The Principal Executive Officer and Principal Financial Officer concluded that the Company's disclosure controls and procedures were effective as of June 30, 2025[272](index=272&type=chunk) - There were no material changes in the Company's internal control over financial reporting during the quarter ended June 30, 2025[273](index=273&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=60&type=section&id=Item%201.%20Legal%20Proceedings) The Company is routinely involved in legal actions, but management believes none will have a material adverse impact on its financial condition or results of operations - The Company is routinely involved in legal actions, but management believes none will have a material adverse impact on its financial condition or results of operations[274](index=274&type=chunk) [Item 1A. Risk Factors](index=60&type=section&id=Item%201A.%20Risk%20Factors) Risk factors are detailed in the Company's Annual Report on Form 10-K for December 31, 2024, and subsequent Quarterly Reports on Form 10-Q - Risk factors are detailed in the Company's Annual Report on Form 10-K for December 31, 2024, and subsequent Quarterly Reports on Form 10-Q[275](index=275&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities](index=89&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The Company did not repurchase any common stock during Q2 2025, with **1,566,947** shares remaining available for purchase under authorized stock repurchase programs - No repurchases of common stock occurred during the quarter ended June 30, 2025[280](index=280&type=chunk) - As of June 30, 2025, **1,566,947** shares remained available for purchase under authorized stock repurchase programs[280](index=280&type=chunk) [Item 3. Defaults Upon Senior Securities](index=89&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the reporting period - No defaults upon senior securities occurred[277](index=277&type=chunk) [Item 4. Mine Safety Disclosures](index=89&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Company - Mine Safety Disclosures are not applicable to the Company[278](index=278&type=chunk) [Item 5. Other Information](index=89&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated any Rule 10b5-1 trading arrangements for Company securities during Q2 2025 - No directors or executive officers adopted or terminated any Rule 10b5-1 trading arrangements during the three months ended June 30, 2025[279](index=279&type=chunk) [Item 6. Exhibits](index=90&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including organizational documents, indentures, certifications, and XBRL financial statements - Exhibits include Restated Certificate of Incorporation, Amended and Restated Bylaws, Indentures, Certifications of Principal Executive and Financial Officers, and XBRL financial statements[281](index=281&type=chunk)[282](index=282&type=chunk) [Signatures](index=91&type=section&id=Signatures) The report is signed by Stuart H. Lubow, President and CEO, and Avinash Reddy, Senior EVP and CFO, on August 5, 2025 - The report is signed by Stuart H. Lubow, President and CEO, and Avinash Reddy, Senior EVP and CFO, on August 5, 2025[286](index=286&type=chunk)

Core Insights - Dime Community (DCOM) reported a revenue of $109.69 million for the quarter ended June 2025, marking a year-over-year increase of 25.6% and exceeding the Zacks Consensus Estimate by 1.85% [1] - The earnings per share (EPS) for the same period was $0.64, up from $0.37 a year ago, with an EPS surprise of 1.59% over the consensus estimate of $0.63 [1] Financial Performance Metrics - Efficiency Ratio stood at 55%, slightly above the average estimate of 54.9% based on two analysts [4] - Net Interest Margin was reported at 3%, compared to the estimated 2.9% by two analysts [4] - Average Balance of Total Interest-Earning Assets was $13.2 billion, slightly below the average estimate of $13.31 billion [4] - Net Interest Income reached $98.1 million, surpassing the estimated $97.52 million [4] - BOLI income was $4.19 million, exceeding the average estimate of $3.9 million [4] - Loan level derivative income was $0.94 million, compared to the average estimate of $0.75 million [4] - Non-interest income from other sources was $1.04 million, significantly higher than the average estimate of $0.71 million [4] - Service charges and other fees totaled $4.64 million, above the estimated $4.24 million [4] - Total Non-Interest Income was reported at $11.6 million, exceeding the average estimate of $10.18 million [4] Stock Performance - Dime Community shares have returned +10.5% over the past month, outperforming the Zacks S&P 500 composite's +5.7% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - Core pretax pre-provision income increased to $49 million in Q2 2025 from $28 million a year ago, resulting in a core ROA of 85 basis points [7] - Core EPS was $0.64 per share, representing a 12% increase on a linked quarter basis and a 49% increase year over year [14] - The reported NIM increased to 2.98%, with a potential adjusted NIM of 2.95% when excluding prepayment fees [14][16] Business Line Data and Key Metrics Changes - Business loans grew by over $110 million in Q2 and by over $370 million or 15% year over year [9] - Loan origination, including new lines of credit, reached $450 million for the quarter, with a weighted average rate of approximately 7% [9] - Core deposits increased by $1.2 billion year over year, with the deposit teams growing their portfolios to approximately $2.2 billion [7] Market Data and Key Metrics Changes - Non-brokered deposits rose by approximately $210 million at June 30 compared to the prior quarter [14] - The loan pipeline currently stands at $1.2 billion, up from approximately $1.1 billion at the end of March [10] Company Strategy and Development Direction - The company is focused on growing business loans and managing its commercial real estate (CRE) ratio lower, with a strategic emphasis on diversifying lending verticals [11][12] - Plans to open new branches in Lakewood, New Jersey, and Manhattan are underway, indicating a commitment to expanding its physical presence [11] - The company aims to maintain a strong liquidity position and capitalize on lending opportunities as they arise [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory and ability to attract talented bankers, differentiating itself from local competitors [12] - The company anticipates gradual upward bias in NIM for the third quarter, with more pronounced expansion expected in the fourth quarter as asset repricing occurs [17] - Management is optimistic about the potential for a structurally higher NIM and enhanced earnings power over time [18] Other Important Information - The common equity Tier one ratio increased to 11.25%, and the total capital ratio grew to 15.8%, providing a competitive advantage [16] - The company is not currently focused on buying securities but plans to redeploy cash into new lending verticals over the medium to long term [80] Q&A Session Summary Question: Was there anything one-time in nature regarding DDA balances? - Management confirmed that there was nothing one-time and noted continued strength in retail and private banking groups [24][25] Question: What is the impact of a 25 basis point rate cut on NII or margin? - Historically, a 25 basis point rate cut results in approximately five basis points of NIM expansion [31] Question: What are the operating expenses for the third quarter? - Operating expenses are expected to be approximately $61.5 million, excluding intangible amortization [30] Question: How does the company view M&A opportunities? - The company is open to M&A opportunities but is currently focused on organic growth [39] Question: What are the plans for loan loss reserves? - The goal is to reach a loan loss reserve ratio of 90 basis points to 1% over the medium to long term [57] Question: What is the outlook for loan growth with new verticals? - Each new vertical is expected to reach $300 million to $500 million in balances over time [55]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Dime Community Bancshares, Inc. reported strong Q2 2025 results with significant growth in net income, core deposits, business loans, and capital ratios, leading to a positive outlook revision [Overall Performance](index=1&type=section&id=Overall%20Performance) Dime Community Bancshares, Inc. reported strong second-quarter 2025 results, with net income available to common stockholders increasing significantly year-over-year and quarter-over-quarter. The company achieved solid growth in core deposits, business loans, net interest margin, and capital ratios, leading to a revised 'Positive' outlook from Kroll Bond Rating Agency | Metric | Q2 2025 | Q1 2025 | Q2 2024 | YoY Change (Q2 2025 vs Q2 2024) | QoQ Change (Q2 2025 vs Q1 2025) | | :-------------------------------------- | :------------- | :------------- | :------------- | :------------------------------ | :------------------------------ | | Net Income Available to Common Stockholders | $27.9 million | $19.6 million | $16.7 million | +67.66% | +42.35% | | Diluted Common Share EPS | $0.64 | $0.45 | $0.43 | +48.84% | +42.22% | - Kroll Bond Rating Agency revised the Company's outlook from **"Stable" to "Positive"** in June, recognizing progress in creating a high-quality balance sheet[3](index=3&type=chunk) [Strategic Initiatives & Growth](index=1&type=section&id=Strategic%20Initiatives%20%26%20Growth) The company actively pursued its growth plan through strategic hires and geographic expansion, strengthening its commercial lending capabilities and market presence - Hired Shawn Gines as Executive Vice President of Corporate and Specialty Finance[6](index=6&type=chunk) - Hired Jason Brenner and Zach Schwartz to lead the newly created Lender Finance vertical[6](index=6&type=chunk) - Hired Michael Watts to lead the newly created Fund Finance vertical[6](index=6&type=chunk) - Hired Raffaella Palazzo as Director of Business Banking[6](index=6&type=chunk) - Hired Solomon Ponniah as Group Leader to grow metro NYC lending presence[6](index=6&type=chunk) - Received regulatory approvals to open a branch location at 500 Boulevard of the Americas in Lakewood, New Jersey, planned for early 2026[6](index=6&type=chunk) - Expect to open a new branch location in Manhattan in the fourth quarter of 2025[6](index=6&type=chunk) [Key Financial & Operational Highlights](index=1&type=section&id=Key%20Financial%20%26%20Operational%20Highlights) Key highlights for Q2 2025 include significant year-over-year growth in total and core deposits, robust business loan growth, an improved net interest margin, and a stronger Common Equity Tier 1 Ratio - Total deposits increased **$711.7 million** on a year-over-year basis[6](index=6&type=chunk) - Core deposits (excluding brokered and time deposits) increased **$1.21 billion** on a year-over-year basis[6](index=6&type=chunk) - The ratio of average non-interest-bearing deposits to average total deposits for the second quarter was **30%**[6](index=6&type=chunk) - Business loans grew **$113.3 million** on a linked quarter basis and **$371.3 million** on a year-over-year basis[6](index=6&type=chunk) - The net interest margin increased to **2.98%** for the second quarter of 2025 compared to **2.95%** for the prior quarter[6](index=6&type=chunk) - The Company's Common Equity Tier 1 Ratio increased to **11.25%** at the end of the second quarter[6](index=6&type=chunk) [Management's Discussion of Quarterly Operating Results](index=2&type=section&id=Management's%20Discussion%20of%20Quarterly%20Operating%20Results) This section details the company's financial performance for Q2 2025, covering net interest income, loan portfolio, deposits, non-interest income, expenses, taxes, and credit quality [Net Interest Income and Margin](index=2&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income and net interest margin (NIM) both improved in Q2 2025, driven by strategic loan repricing opportunities, anticipated reductions in deposit costs, and continued growth in core deposits and business loans | Metric | Q2 2025 (in thousands) | Q1 2025 (in thousands) | Q2 2024 (in thousands) | | :------------------ | :--------------------- | :--------------------- | :--------------------- | | Net Interest Income | $98,097 | $94,213 | $75,502 | | NIM | 2.98 % | 2.95 % | 2.41 % | | Adjusted NIM | 2.98 % | 2.94 % | 2.40 % | - Significant loan repricing opportunity expected from H2 2025 through 2027[13](index=13&type=chunk) - Anticipated reduction in deposit costs if the Federal Reserve cuts short-term rates in 2025[13](index=13&type=chunk) - Continued focus on core deposit growth and business loan growth to benefit NIM[13](index=13&type=chunk) [Loan Portfolio Performance](index=2&type=section&id=Loan%20Portfolio%20Performance) The total loan portfolio's weighted average rate (WAR) increased, with business loans showing strong growth both quarter-over-quarter and year-over-year, while overall originations significantly increased | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :----------------------------------- | :------------ | :------------- | :------------ | | Ending WAR on Total Loan Portfolio | 5.33% | 5.25% | 5.39% | | Business Loans (Balance in thousands)| $2,902,170 | $2,788,848 | $2,530,896 | | Multifamily Residential (Balance in thousands)| $3,693,481 | $3,780,078 | $3,920,354 | | Non-owner-occupied CRE (Balance in thousands)| $3,128,453 | $3,191,536 | $3,315,100 | | Originations (Dollars in millions) | Q2 2025 | Q1 2025 | Q2 2024 | | :--------------------------------- | :------ | :------ | :------ | | Excluding New Lines of Credit | $227.3 | $71.5 | $162.4 | | Including New Lines of Credit | $450.5 | $136.7 | $284.6 | [Deposits and Borrowed Funds](index=3&type=section&id=Deposits%20and%20Borrowed%20Funds) Total deposits increased year-over-year, with a notable reduction in brokered deposits, while Federal Home Loan Bank advances remained stable quarter-over-quarter | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :---------------------- | :------------ | :------------- | :------------ | | Total Deposits | $11.74 billion| $11.61 billion | $11.03 billion| | Brokered Deposits | $200.0 million| $285.6 million | $780.3 million| | FHLB Advances | $508.0 million| $508.0 million | $633.0 million| [Non-Interest Income](index=3&type=section&id=Non-Interest%20Income) Non-interest income saw a quarter-over-quarter increase, primarily driven by higher loan level derivative income and BOLI income, despite a slight year-over-year decrease | Metric | Q2 2025 (in millions) | Q1 2025 (in millions) | Q2 2024 (in millions) | | :----------------- | :-------------------- | :-------------------- | :-------------------- | | Non-Interest Income| $11.6 | $9.6 | $11.8 | - Loan level derivative income increased from **$61 thousand** in Q1 2025 to **$942 thousand** in Q2 2025[38](index=38&type=chunk) - BOLI income increased from **$3,993 thousand** in Q1 2025 to **$4,186 thousand** in Q2 2025[38](index=38&type=chunk) [Non-Interest Expense and Efficiency](index=3&type=section&id=Non-Interest%20Expense%20and%20Efficiency) Total non-interest expense decreased quarter-over-quarter, leading to an improved efficiency ratio. The year-over-year increase in expenses is attributed to strategic investments and hires supporting the company's growth plan | Metric | Q2 2025 (in millions) | Q1 2025 (in millions) | Q2 2024 (in millions) | | :-------------------------------------- | :-------------------- | :-------------------- | :-------------------- | | Total Non-Interest Expense | $60.3 | $65.5 | $55.7 | | Adjusted Non-Interest Expense (non-GAAP)| $59.9 | $58.0 | $55.4 | | Efficiency Ratio | 55.0% | 63.1% | 63.8% | | Adjusted Efficiency Ratio (non-GAAP) | 54.7% | 55.8% | 65.9% | - The year-over-year increase in non-interest expense is due to significant investments and hires made to execute the growth plan, focusing on growing core deposits, diversifying the loan portfolio, and selectively adding new geographies[20](index=20&type=chunk) [Income Tax Expense](index=3&type=section&id=Income%20Tax%20Expense) Income tax expense increased quarter-over-quarter, resulting in a higher effective tax rate for Q2 2025 compared to the prior quarter, but lower than the same period last year | Metric | Q2 2025 (in millions) | Q1 2025 (in millions) | Q2 2024 (in millions) | | :----------------- | :-------------------- | :-------------------- | :-------------------- | | Income Tax Expense | $10.5 | $7.3 | $7.6 | | Effective Tax Rate | 26.1% | 25.3% | 29.0% | [Credit Quality](index=3&type=section&id=Credit%20Quality) Non-performing loans decreased quarter-over-quarter, while the credit loss provision remained relatively stable. However, non-performing loans increased significantly year-over-year | Metric | June 30, 2025 (in millions) | March 31, 2025 (in millions) | June 30, 2024 (in millions) | | :---------------------- | :-------------------------- | :--------------------------- | :-------------------------- | | Non-Performing Loans | $53.2 | $58.0 | $24.8 | | Credit Loss Provision | $9.2 | $9.6 | $5.6 | [Capital Management](index=4&type=section&id=Capital%20Management) This section reviews the company's capital position, including stockholders' equity, regulatory capital ratios, and per-share metrics [Stockholders' Equity and Regulatory Capital](index=4&type=section&id=Stockholders'%20Equity%20and%20Regulatory%20Capital) Stockholders' equity increased, and all regulatory capital ratios remained strong and improved in Q2 2025, exceeding all applicable regulatory requirements | Metric | June 30, 2025 | March 31, 2025 | | :----------------------------------- | :------------ | :------------- | | Stockholders' Equity (in billions) | $1.43 | $1.41 | | Common Equity Tier 1 Ratio | 11.25% | 11.11% | | Tier 1 Risk-Based Capital Ratio | 12.34% | 12.21% | | Total Risk-Based Capital Ratio | 15.84% | 15.68% | | Tier 1 Leverage Ratio | 9.43% | 9.46% | - The Company's and the Bank's regulatory capital ratios continued to be in excess of all applicable regulatory requirements as of June 30, 2025, with all risk-based regulatory capital ratios increasing in the second quarter[25](index=25&type=chunk) [Per Share Metrics and Dividends](index=5&type=section&id=Per%20Share%20Metrics%20and%20Dividends) Book value and tangible common book value per share increased quarter-over-quarter, while dividends per common share remained consistent | Metric | June 30, 2025 | March 31, 2025 | | :------------------------------- | :------------ | :------------- | | Dividends per Common Share | $0.25 | $0.25 | | Book Value per Common Share | $29.95 | $29.58 | | Tangible Common Book Value per Share | $26.32 | $25.94 | [Company Information](index=5&type=section&id=Company%20Information) This section provides details on the Q2 2025 earnings call, an overview of Dime Community Bancshares, Inc., and a disclaimer regarding forward-looking statements [Earnings Call Details](index=5&type=section&id=Earnings%20Call%20Details) Details for the Q2 2025 earnings conference call, including webcast and telephone access information, and replay availability - A conference call was scheduled for **8:30 a.m. (ET)** on **Thursday, July 24, 2025**, with CEO Lubow discussing Q2 2025 financial performance[28](index=28&type=chunk) - Participants could access the call via webcast or telephone registration, with a replay available on-demand for **12 months**[29](index=29&type=chunk)[30](index=30&type=chunk) [About Dime Community Bancshares, Inc.](index=5&type=section&id=About%20Dime%20Community%20Bancshares%20%2C%20Inc.) Dime Community Bancshares, Inc. is the holding company for Dime Community Bank, a New York State-chartered trust company with over $14 billion in assets and a leading deposit market share on Greater Long Island - Dime Community Bancshares, Inc. is the holding company for Dime Community Bank, a New York State-chartered trust company[31](index=31&type=chunk) - The Bank has over **$14 billion** in assets and holds the number one deposit market share among community banks on Greater Long Island (Kings, Queens, Nassau & Suffolk counties for community banks with less than **$20 billion** in assets)[31](index=31&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section provides a standard disclaimer regarding forward-looking statements, outlining various assumptions, risks, and uncertainties that could cause actual results to differ materially from projections - The news release contains forward-looking statements identified by terms such as "anticipate," "believe," "expect," and "outlook"[32](index=32&type=chunk) - These statements are based on management's assumptions and perceptions of historical trends and future developments but are not guarantees of future performance[33](index=33&type=chunk) - Factors that could affect results include competitive pressures, interest rate changes, government policies, deposit flows, loan demand, real estate values, credit quality, accounting changes, tax laws, socio-economic conditions, regulatory changes, technological changes, security breaches, and litigation[33](index=33&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) This section presents the company's consolidated financial statements, including the statements of financial condition, operations, selected highlights, average balances, and non-performing assets [Consolidated Statements of Financial Condition](index=7&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) The consolidated balance sheet shows an increase in total assets and stockholders' equity as of June 30, 2025, compared to March 31, 2025, with notable changes in cash, loans, and deposits | (In thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :------------- | :---------------- | | Total Assets | $14,207,935 | $14,097,682 | $14,353,258 | | Cash and due from banks | $1,156,754 | $1,030,702 | $1,283,571 | | Total Loans Held for Investment, Net | $10,777,683 | $10,778,280 | $10,783,192 | | Total Deposits | $11,740,095 | $11,615,924 | $11,686,141 | | Total Liabilities | $12,776,929 | $12,685,669 | $12,956,741 | | Total Stockholders' Equity | $1,431,006 | $1,412,013 | $1,396,517 | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) The consolidated income statement reflects increased net interest income and net income available to common stockholders for Q2 2025 compared to both the prior quarter and the same period last year, driven by higher interest income and improved efficiency | (Dollars in thousands) | Three Months Ended June 30, 2025 | Three Months Ended March 31, 2025 | Three Months Ended June 30, 2024 | | :------------------------------------- | :------------------------------- | :-------------------------------- | :------------------------------- | | Total Interest Income | $167,550 | $161,865 | $159,418 | | Total Interest Expense | $69,453 | $67,652 | $83,916 | | Net Interest Income | $98,097 | $94,213 | $75,502 | | Provision for Credit Losses | $9,221 | $9,626 | $5,585 | | Total Non-Interest Income | $11,595 | $9,633 | $11,808 | | Total Non-Interest Expense | $60,299 | $65,511 | $55,694 | | Income Before Taxes | $40,172 | $28,709 | $26,031 | | Net Income Available to Common Stockholders | $27,876 | $19,636 | $16,657 | | Diluted EPS | $0.64 | $0.45 | $0.43 | [Selected Financial Highlights](index=9&type=section&id=Selected%20Financial%20Highlights) Key performance ratios for Q2 2025 show improvements in return on average assets, return on average equity, and efficiency ratio, alongside stable dividend payouts and increased book values per share | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :----------------------------------- | :------- | :------- | :------- | | Reported EPS (Diluted) | $0.64 | $0.45 | $0.43 | | Cash Dividends Paid per Common Share | $0.25 | $0.25 | $0.25 | | Book Value per Common Share | $29.95 | $29.58 | $28.97 | | Return on Average Assets | 0.85 % | 0.62 % | 0.55 % | | Return on Average Equity | 8.28 % | 6.04 % | 5.88 % | | Net Interest Margin | 2.98 % | 2.95 % | 2.41 % | | Efficiency Ratio | 55.0 % | 63.1 % | 63.8 % | | Common Shares Outstanding (in thousands) | 43,889 | 43,799 | 39,148 | [Average Balances and Interest Rates/Yields](index=10&type=section&id=Average%20Balances%20and%20Interest%20Rates%2FYields) Average interest-earning assets increased, contributing to higher total interest income. The net interest rate spread and net interest margin both improved quarter-over-quarter, reflecting effective asset and liability management | (Dollars in thousands) | Q2 2025 Average Balance | Q2 2025 Interest | Q2 2025 Yield/Cost | | :--------------------------------- | :---------------------- | :--------------- | :----------------- | | Total Interest Earning Assets | $13,195,116 | $167,550 | 5.09 % | | Total Interest Bearing Liabilities | $8,978,936 | $69,453 | 3.10 % | | Net Interest Rate Spread | | | 1.99 % | | Net Interest Margin | | | 2.98 % | - Average business loans increased from **$2,748,142 thousand** in Q1 2025 to **$2,798,899 thousand** in Q2 2025[43](index=43&type=chunk) - Average money market deposits increased from **$4,076,612 thousand** in Q1 2025 to **$4,174,694 thousand** in Q2 2025[43](index=43&type=chunk) [Schedule of Non-Performing Assets](index=12&type=section&id=Schedule%20of%20Non-Performing%20Assets) Non-performing loans (NPLs) and non-performing assets (NPAs) decreased quarter-over-quarter but remained significantly higher year-over-year. Net charge-offs also decreased quarter-over-quarter | Metric | June 30, 2025 (in thousands) | March 31, 2025 (in thousands) | June 30, 2024 (in thousands) | | :-------------------------------------- | :--------------------------- | :---------------------------- | :--------------------------- | | Total Non-Accrual Loans | $53,214 | $58,041 | $24,843 | | Total Non-Performing Assets (NPAs) | $53,214 | $58,041 | $24,843 | | NPAs and 90+ Delinquent / Total Assets | 0.37% | 0.41% | 0.18% | | Net Charge-Offs (NCOs) | $5,405 | $7,058 | $3,640 | | NCOs / Average Loans | 0.20% | 0.26% | 0.14% | [Non-GAAP Reconciliation](index=13&type=section&id=Non-GAAP%20Reconciliation) This section reconciles non-GAAP financial measures to their most directly comparable GAAP measures, providing adjusted insights into the company's performance [Adjusted Net Income and Ratios](index=13&type=section&id=Adjusted%20Net%20Income%20and%20Ratios) The company provides non-GAAP adjusted financial measures to offer a clearer view of operating results by excluding certain non-recurring or non-operational items. Adjusted net income and related ratios show improved performance for Q2 2025 - Non-GAAP financial measures exclude pre-tax income and expenses associated with fair value changes in equity securities and loans held for sale, net gain on sale of securities and other assets, severance, loss on extinguishment of debt, and loss due to pension settlement[50](index=50&type=chunk) | Metric | Q2 2025 (in millions) | Q1 2025 (in millions) | Q2 2024 (in millions) | | :-------------------------------------- | :-------------------- | :-------------------- | :-------------------- | | Reported Net Income Available to Common Stockholders | $27.876 | $19.636 | $16.657 | | Adjusted Net Income Available to Common Stockholders (non-GAAP) | $27.863 | $24.688 | $14.421 | | Adjusted EPS (Diluted) | $0.64 | $0.57 | $0.37 | | Adjusted Return on Average Assets | 0.85 % | 0.77 % | 0.48 % | | Adjusted Return on Average Equity | 8.28 % | 7.46 % | 5.17 % | [Adjusted Operating Expense](index=13&type=section&id=Adjusted%20Operating%20Expense) Adjusted operating expense as a percentage of average assets improved quarter-over-quarter, reflecting better cost management when excluding specific non-recurring items | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :-------------------------------------- | :------- | :------- | :------- | | Operating Expense as a % of Average Assets - as reported | 1.72 % | 1.90 % | 1.66 % | | Adjusted Operating Expense as a % of Average Assets (non-GAAP) | 1.71 % | 1.68 % | 1.65 % | [Adjusted Efficiency Ratio](index=14&type=section&id=Adjusted%20Efficiency%20Ratio) The adjusted efficiency ratio significantly improved both quarter-over-quarter and year-over-year, indicating enhanced operational efficiency when accounting for specific non-recurring expenses and income adjustments | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :-------------------------------------- | :------- | :------- | :------- | | Efficiency Ratio - as reported (non-GAAP) | 55.0 % | 63.1 % | 63.8 % | | Adjusted Efficiency Ratio (non-GAAP) | 54.7 % | 55.8 % | 65.9 % | [Tangible Equity Reconciliations](index=14&type=section&id=Tangible%20Equity%20Reconciliations) Reconciliations for tangible assets, tangible equity, and tangible common equity demonstrate an increase in tangible common equity to tangible assets and tangible common book value per share, reflecting a stronger tangible capital base | Metric | June 30, 2025 (in thousands) | March 31, 2025 (in thousands) | June 30, 2024 (in thousands) | | :-------------------------------------- | :--------------------------- | :---------------------------- | :--------------------------- | | Total Assets | $14,207,935 | $14,097,682 | $13,548,763 | | Tangible Assets (non-GAAP) | $14,048,729 | $13,938,241 | $13,388,499 | | Total Stockholders' Equity | $1,431,006 | $1,412,013 | $1,250,596 | | Tangible Equity (non-GAAP) | $1,271,800 | $1,252,572 | $1,090,332 | | Tangible Common Equity (non-GAAP) | $1,155,231 | $1,136,003 | $973,763 | | Tangible Common Equity to Tangible Assets (non-GAAP) | 8.22 % | 8.15 % | 7.27 % | | Tangible Common Book Value per Share (non-GAAP) | $26.32 | $25.94 | $24.87 |

Core Financial Performance - The company reported net income available to common stockholders of $27.9 million for Q2 2025, an increase from $19.6 million in Q1 2025 and $16.7 million in Q2 2024, translating to earnings per diluted share of $0.64, up from $0.45 and $0.43 respectively [2][36][41] - Net interest income for Q2 2025 was $98.1 million, compared to $94.2 million in Q1 2025 and $75.5 million in Q2 2024, reflecting a year-over-year growth [5][36] - The net interest margin (NIM) improved to 2.98% in Q2 2025 from 2.95% in Q1 2025 and 2.41% in Q2 2024 [6][41] Deposit and Loan Growth - Total deposits increased by $711.7 million year-over-year, reaching $11.74 billion as of June 30, 2025, compared to $11.03 billion a year earlier [8][15] - Core deposits (excluding brokered and time deposits) rose by $1.21 billion year-over-year [8] - Business loans grew by $113.3 million quarter-over-quarter and $371.3 million year-over-year, totaling $2.90 billion at the end of Q2 2025 [8][10] Capital and Efficiency Ratios - The company's Common Equity Tier 1 Ratio increased to 11.25% at the end of Q2 2025, reflecting strong capital management [8][25] - The efficiency ratio improved to 55.0% in Q2 2025 from 63.1% in Q1 2025 and 63.8% in Q2 2024, indicating better operational efficiency [22][41] Credit Quality and Provisions - Non-performing loans decreased to $53.2 million at June 30, 2025, down from $58.0 million at March 31, 2025, and $24.8 million at June 30, 2024 [24] - A credit loss provision of $9.2 million was recorded in Q2 2025, slightly down from $9.6 million in Q1 2025 and up from $5.6 million in Q2 2024 [24] Strategic Initiatives - The company has made significant hires to support its growth strategy, including the recruitment of executives to lead new lending verticals [8][21] - Plans for geographic expansion include opening a new branch in Lakewood, New Jersey, in early 2026 and another in Manhattan in Q4 2025 [8]

Group 1 - Dime Community Bancshares, Inc. has been recognized as the Lending Partner of the Year by Neighborhood Housing Services of New York City, highlighting its commitment to community support and housing stability [1] - The Bridging the Gap Gala, where the award will be presented, is scheduled for October 7th, 2025, emphasizing the company's active role in local community initiatives [1] - Dime Community Bancshares, Inc. operates 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 [2][3] Group 2 - Dime Community Bank is a New York State-chartered trust company, indicating its regulatory compliance and operational framework within the state [2] - The bank's significant asset base and market share position it favorably within the competitive landscape of community banking [2]

Core Points - Dime Community Bancshares, Inc. will release its earnings for the quarter ended June 30, 2025, before the U.S. equity markets open on July 24, 2025 [1] - A conference call will be held at 8:30 a.m. (ET) on the same day, where the CEO will discuss the second quarter financial performance [1] - Participants can access the conference call via webcast or telephone, with a registration process required for telephone participants [2] - A replay of the conference call and webcast will be available on-demand for 12 months [3] Company Overview - Dime Community Bancshares, Inc. is the holding company for Dime Community Bank, which has over $14 billion in assets [4] - The bank holds the number one deposit market share among community banks on Greater Long Island [4] - The aggregate deposit market share for community banks with less than $20 billion in assets includes Kings, Queens, Nassau, and Suffolk counties [4]

Tom Geisel, Dime's Senior Executive Vice President of Commercial Lending, said, "We continue to diversify our client offerings and with the addition of Lender Finance, we now have five distinct verticals (Healthcare, Lender Finance, Mid-Corporate, Fund Finance and Not-For-Profit Lending) that will contribute to our future growth. Jason and Zack's background and experience will continue to accelerate our platform buildout." ABOUT DIME COMMUNITY BANCSHARES, INC. Another Significant Step In Building Out Commer ...

Company Overview - Dime Community Bancshares is a regional bank based in New York state, offering both common and preferred shares [1]. Investment Focus - The company is currently focused on income investing through common shares, preferred shares, or bonds [1]. Analyst Background - The analyst has a background in history/political science and holds an MBA with a specialization in Finance and Economics, indicating a strong foundation in financial analysis [1].