Financial Performance - Net income available to common stockholders for Q3 2025 was $25.85 million, compared to $11.51 million in Q3 2024, representing a 125% increase[38] - Basic EPS for Q3 2025 was $0.59, up from $0.29 in Q3 2024, indicating a 103% growth[38] - Total weighted-average common shares outstanding increased to 43,052,898 in Q3 2025 from 38,366,619 in Q3 2024, reflecting a 12% rise[38] Comprehensive Income - The company reported a net other comprehensive income of $11.42 million for the nine months ended September 30, 2025, compared to $18.61 million for the same period in 2024[36] - The accumulated other comprehensive income (loss) balance as of September 30, 2025, was $(33.60) million, an improvement from $(72.97) million as of September 30, 2024[34] - The company recorded a loss of $16.609 million in other comprehensive income for the nine months ended September 30, 2025, compared to a loss of $15.483 million in the same period of 2024[88] Securities and Investments - As of September 30, 2025, total securities available-for-sale amounted to $688.4 million, with a fair value of $662.7 million, reflecting unrealized losses of $29.3 million[43] - The carrying value of pledged securities decreased from $622.7 million on December 31, 2024, to $562.6 million on September 30, 2025[44] - The total fair value of securities held-to-maturity was $623,094 thousand at September 30, 2025, with $560,453 thousand classified under Level 2 inputs[110] Loans and Credit Quality - Total loans held for investment, net decreased from $10,783,192,000 as of December 31, 2024, to $10,631,613,000 as of September 30, 2025, representing a decline of approximately 1.4%[52] - The allowance for credit losses increased from $88,751,000 at the end of 2024 to $94,061,000 by September 30, 2025, indicating a rise of about 6.5%[52] - Non-accrual loans totaled $72,054,000 as of September 30, 2025, with $51,033,000 having no allowance and $21,021,000 with an allowance[54] Loan Modifications and Charge-offs - The charge-offs for the nine months ended September 30, 2025, amounted to $25,776,000, compared to $4,494,000 for the same period in 2024, indicating a substantial increase in charge-offs[54] - Total loan modifications for the nine months ended September 30, 2025, reached $134,137 thousand, with a weighted average interest rate reduction of 1.27%[61] - For the three months ended September 30, 2025, loan modifications for business loans included $1,050 thousand in interest rate reductions and $2,833 thousand in payment delays, representing 0.1% of total financing receivables[60] Derivative Instruments and Hedging - The notional amount of cash flow hedges for interest rate products is $150,000 thousand, with a fair value of $3,918 thousand as of September 30, 2025[74] - The company reported a gain of $416 thousand on derivatives designated as hedging instruments for the three months ended September 30, 2025[76] - The company has not conducted any transactions involving derivative instruments for hedging interest rate or market risk during the nine months ended September 30, 2025[254] Borrowings and Debt - The Bank's borrowings from the FHLBNY totaled $508.0 million at September 30, 2025, down from $608.0 million at December 31, 2024, with a remaining borrowing capacity of $1.78 billion[116] - Subordinated debentures totaled $272.5 million as of September 30, 2025, with interest expense of $12.9 million for the nine months ended September 30, 2025[125] - The Company issued $65.0 million of fixed-to-floating rate subordinated notes due 2034 with a fixed annual interest rate of 9.00%[121] Employee Compensation and Benefits - The Company recognized a total benefit cost of $7.017 million for the BNB Bank Pension Plan and Employee Retirement Plan for the nine months ended September 30, 2025[130] - Compensation expense for restricted stock awards was $4.099 million for the nine months ended September 30, 2025, with $8.2 million of unrecognized compensation cost related to unvested RSAs[135] - The compensation expense recognized for PSAs during the three months ended September 30, 2025, was $628,000, compared to $414,000 for the same period in 2024, reflecting a 51.8% increase[137] Taxation - The Company's consolidated effective tax rate for the three months ended September 30, 2025, was 31.0%, up from 26.9% in the same period of 2024[139] Economic Value of Equity - The Economic Value of Equity (EVE) increased from $1.76 billion at December 31, 2024, to $1.82 billion at September 30, 2025, primarily due to an increase in the value of the loan and investment portfolios[261] - In the +200 Basis Point Rate Shock Scenario, the EVE increased by 12.0% to $2.04 billion as of September 30, 2025, compared to $1.86 billion at December 31, 2024[260]

Core Points - Dime Community Bancshares, Inc. announced a senior executive succession plan, with Conrad Gunther set to retire at the end of 2025, and Thomas X. Geisel appointed as Chief Commercial Officer to take over Gunther's responsibilities [1][5] - Avi Reddy, currently the Chief Financial Officer, will expand his role to include Chief Operating Officer, overseeing all client-facing deposit businesses and working on major strategic initiatives [1][5] - The company has over $14 billion in assets and holds the number one deposit market share among community banks in Greater Long Island [2][3] Executive Changes - Conrad Gunther has had a successful 50-year career in commercial banking and has been pivotal in transforming Dime into a diversified commercial bank since joining in 2017 [1] - The succession plan aims to allow Gunther more family time while ensuring the company's growth trajectory continues [1] - Tom Geisel's integration into the organization has been seamless, contributing positively to the company's growth [1] Company Overview - Dime Community Bancshares, Inc. is the parent company of Dime Community Bank, which is a New York State-chartered trust company [2] - The bank has a significant presence in the Greater Long Island area, particularly in deposit market share among community banks [2][3]

Outside of rate cuts, we continue to have several additional catalysts to continue to grow our NIM over the medium to long term, including a significant back book loan repricing opportunity. Avi will get into more details on the margin in his prepared remarks. On the loan front, we continue to execute our stated plan of growing business loans and managing our CRE concentration ratio, which is now 401%. Business loans grew over $160 million in the third quarter compared to $110 million of business loan growt ...

Dime Community Bancshares (NasdaqGS:DCOM) Q3 2025 Earnings Call October 23, 2025 08:00 AM ET Company ParticipantsAvi Reddy - CFOMark Fitzgibbon - Managing Director and Head of FSG ResearchStuart Lubow - President and CEOConference Call ParticipantsSteve Moss - AnalystMatthew Breese - Managing Director and Research AnalystOperatorToday, and thank you for standing by. Welcome to the Dime Community Bancshares Inc. third quarter earnings conference call. Before we begin, the company would like to remind you tha ...

Financial Data and Key Metrics Changes - Core pre-tax, pre-provision income for Q3 2025 was $54.4 million, up from $49.4 million in Q2 2025 and $29.8 million year-over-year [3][4] - Core EPS for Q3 was $0.61, representing a 110% year-over-year increase [10] - Reported NIM increased to 3.01%, with a significant increase in the spread between loans and deposits following the Fed rate cut [10][5] Business Line Data and Key Metrics Changes - Business loans grew over $160 million in Q3, compared to $110 million in Q2, with year-over-year growth exceeding $400 million [7] - Loan originations, including new lines of credit, increased to $535 million, with a weighted average rate of approximately 6.95% [7] - Core deposits increased by $1 billion year-over-year, with total deposits up approximately $320 million from the prior quarter [4][10] Market Data and Key Metrics Changes - Non-performing assets (NPAs) were up slightly but represented only 50 basis points of total assets, which is favorable compared to peers [4] - The company maintained a strong liquidity position with a core deposit-funded balance sheet [4] Company Strategy and Development Direction - The company is focused on organic growth, particularly in business loans and core deposits, while managing its commercial real estate concentration ratio [8][38] - New branch openings in Manhattan and New Jersey are part of the strategy to expand market presence [8] - The company aims for NIM expansion in the fourth quarter and significant opportunities in 2026 based on loan repricing [8][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit quality and expects resolution of legacy NPAs in Q4 [22] - The company anticipates a gradual improvement in NIM due to reduced deposit costs and stable loan yields [12][13] - Management believes the industry is in the later innings of the credit cycle, with a strong local economy and no significant stress expected [49] Other Important Information - Non-interest income for the quarter was $12.2 million, including a $1.5 million fraud recovery [11][46] - The common equity tier 1 ratio grew to over 11.5%, and total capital ratio increased to over 16% [11][12] Q&A Session Summary Question: Inquiry about charge-offs related to non-performing loans - Management clarified that charge-offs were primarily related to owner-occupied and non-owner-occupied commercial real estate, with no multifamily loans involved [21][22] Question: Expectations on multifamily payoffs and future prepayments - Management indicated that while there were significant payoffs this quarter, future prepayments are expected to normalize [24] Question: Discussion on normalized charge-offs and future expectations - Management stated that charge-offs are currently at 31 basis points and expect to return to historical levels as new businesses are built out [30][31] Question: Insights on deposit betas with potential rate cuts - Management noted that gradual rate cuts would help maintain deposit costs, with current costs in the low 190s [34][35] Question: Thoughts on M&A and strategic alternatives - Management emphasized a focus on organic growth and deploying excess liquidity rather than pursuing M&A at this time [38][45] Question: Discussion on stock repurchases given capital ratios - Management confirmed that discussions on stock repurchases have begun, with a focus on deploying capital effectively before considering buybacks [44][45]

Financial Data and Key Metrics Changes - Core earnings power showed significant growth with pre-tax, pre-provision income of $54.4 million in Q3 2025, up from $49.4 million in Q2 2025 and $29.8 million year-over-year [3][4] - Core EPS for Q3 was $0.61 per share, representing a 110% year-over-year increase [9] - Reported NIM increased to 3.01%, with a notable increase in the spread between loans and deposits by approximately 10 basis points following the Fed rate cut [9][12] Business Line Data and Key Metrics Changes - Business loans grew over $160 million in Q3 2025, compared to $110 million in Q2 2025, with year-over-year growth exceeding $400 million [6] - Loan originations, including new lines of credit, reached $535 million, with a weighted average rate of approximately 6.95% [6] - Core deposits increased by $1 billion year-over-year, with total deposits up approximately $320 million from the prior quarter [4][9] Market Data and Key Metrics Changes - Non-performing assets (NPAs) increased slightly but remained low at 50 basis points of total assets, which is favorable compared to peers [4] - The company maintained a strong liquidity position with a core deposit-funded balance sheet, allowing it to capitalize on lending opportunities [4][7] Company Strategy and Development Direction - The company is focused on organic growth, particularly in business loans and core deposits, while managing its commercial real estate concentration ratio [7][33] - New branch openings in Manhattan and New Jersey are part of the strategy to expand market presence [7] - The company aims for continued NIM expansion, with expectations for significant opportunities in 2026 based on loan repricing [7][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit quality and expects to resolve legacy NPAs in Q4, projecting a stable NPA range [19][20] - The outlook for the credit cycle is cautiously optimistic, with expectations of muddling along rather than entering a significant stress environment [40] - Management anticipates a path to a structurally higher NIM and enhanced earnings power over time, with targets of 3.25% and 3.50% NIM in the future [12][13] Other Important Information - Non-interest income for the quarter was $12.2 million, including a $1.5 million fraud recovery from a legacy issue [10][38] - The company is considering stock repurchases as capital ratios improve, with a focus on deploying capital effectively [36][37] Q&A Session Summary Question: Inquiry about NPA formations and charge-offs - Management clarified that charge-offs were primarily related to owner-occupied and non-owner-occupied commercial real estate, with expectations for resolution of legacy NPAs in Q4 [19] Question: Expectations on charge-offs normalization - Management indicated that normalized charge-offs were expected to be around 20 to 30 basis points, with current levels at 31 basis points [25][27] Question: Market appetite for multifamily products - Management noted that there was no significant differentiation in refinancing between market rate and rent-regulated multifamily loans, with a high percentage of loans being refinanced [28] Question: Expectations on deposit betas with potential rate cuts - Management expressed confidence in maintaining deposit costs while growing deposits, with expectations of similar deposit betas in future rate cuts [29][30] Question: Thoughts on M&A and strategic alternatives - Management emphasized a focus on organic growth and deploying excess liquidity, while remaining open to maximizing shareholder value [33][34] Question: Discussion on stock repurchases - Management confirmed that discussions on stock repurchases have begun, with a focus on balancing capital deployment and maintaining a strong capital position [36][37]

Financial Data and Key Metrics Changes - Core pre-tax pre-provision income for Q3 2025 was $54.4 million, up from $49.4 million in Q2 2025 and $29.8 million a year ago, indicating significant growth [6] - Core EPS for Q3 was $0.61 per share, representing a 110% year-over-year increase [14] - The reported NIM increased to 3.1% in Q3, marking a continuous increase for six consecutive quarters [14][7] - Total deposits increased by approximately $320 million from the previous quarter [15] Business Line Data and Key Metrics Changes - Business loans grew by over $160 million in Q3, compared to $110 million in Q2, with year-over-year growth exceeding $400 million [8] - Loan originations, including new lines of credit, increased to $535 million [8] - The weighted average rate on new loan originations was approximately 6.95% [8] Market Data and Key Metrics Changes - The company has a strong loan pipeline currently standing at $1.2 billion, with a weighted average rate between 6.56% and 6.75% [9] - Core deposits increased by $1 billion year-over-year, reflecting strong inflows across the branch network [6] Company Strategy and Development Direction - The company is focused on organic growth, particularly in business loans and core deposits, while maintaining a strong liquidity position [12][49] - A new branch was opened in Manhattan, with plans for additional locations in New Jersey and Long Island [11] - The company aims for continued NIM expansion, with expectations of reaching mid to high 3% in the medium to long term [49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit quality, with NPAs at 50 basis points of total assets, and a positive outlook for resolving legacy NPAs [29] - The company anticipates more substantial NIM expansion in Q4 2025, driven by reduced deposit costs and maintained loan yields [17] - Management believes the industry is in the later innings of the credit cycle, with expectations of a gradual improvement in the operating environment [63] Other Important Information - The company reported a $1.5 million positive benefit from a fraud recovery related to Legacy Bridge [15][61] - The common equity Tier one ratio grew to over 11.5%, providing a competitive advantage [16] Q&A Session Summary Question: Regarding NPA formations and charge-offs - Management clarified that charge-offs were primarily related to owner-occupied and non-owner-occupied real estate, with no multifamily-related charge-offs [28] Question: Expectations on multifamily payoffs - Management indicated that while there were significant payoffs this quarter, future paydowns would normalize [30] Question: Thoughts on normalized charge-offs - Management expects charge-offs to stabilize around 20 to 30 basis points, with new business lines not contributing to increased charge-offs [36] Question: Market appetite for multifamily products - Management noted no significant differentiation in refinancing between market rate and rent-regulated multifamily loans [40] Question: Expectations on deposit betas with potential rate cuts - Management indicated that gradual rate cuts would help maintain deposit costs, with expectations of similar reductions in future rate cuts [42] Question: Thoughts on stock repurchases - Management is considering stock repurchases, especially as capital ratios are strong and the CRE concentration ratio has improved [55] Question: Industry credit cycle outlook - Management believes the industry is in the later innings of the credit cycle, with expectations of a stable environment moving forward [63]

Core Insights - Dime Community (DCOM) reported quarterly earnings of $0.61 per share, missing the Zacks Consensus Estimate of $0.67 per share, but showing an increase from $0.29 per share a year ago, resulting in an earnings surprise of -8.96% [1] - The company posted revenues of $115.61 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 3.68% and up from $87.56 million year-over-year [2] - Dime Community shares have underperformed the market, losing about 3.5% since the beginning of the year compared to the S&P 500's gain of 13.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.77 on revenues of $117.36 million, and for the current fiscal year, it is $2.60 on revenues of $442.33 million [7] - The estimate revisions trend for Dime Community was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Zacks Industry Rank for Banks - Southeast is currently in the top 20% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Net income available to common stockholders for Q3 2025 was $25.8 million, or $0.59 per diluted share, compared to $11.5 million, or $0.29 per diluted share in Q3 2024, representing a 103% year-over-year increase in earnings per share [2][3]. - Adjusted net income for Q3 2025 was $26.6 million, with adjusted EPS of $0.61, compared to $11.5 million and $0.29 per share in Q3 2024 [3]. - Non-interest income for Q3 2025 was $12.2 million, compared to $7.6 million in Q3 2024, reflecting a strong increase [16]. - Net income for the three months ended September 30, 2025, was $27,671,000, a decrease from $29,697,000 in the same period of 2024, representing a decline of 6.8% [35]. - The diluted earnings per share (EPS) for the three months ended September 30, 2025, was $0.59, compared to $0.64 for the same period in 2024, reflecting a decrease of 7.8% [37]. - Adjusted net income available to common stockholders (non-GAAP) for Q3 2025 was $26,588,000, reflecting a slight decrease from $27,863,000 in Q2 2025 [48]. - Adjusted EPS (Diluted) for Q3 2025 was $0.61, down from $0.64 in Q2 2025 and up from $0.29 in Q3 2024 [48]. Asset and Liability Management - Total assets as of September 30, 2025, reached $14,538,943, an increase from $14,207,935 as of June 30, 2025, representing a growth of approximately 2.33% [32]. - Total liabilities rose to $13,086,601 as of September 30, 2025, compared to $12,776,929 as of June 30, 2025, an increase of approximately 2.43% [32]. - Stockholders' equity increased to $1.45 billion at the end of Q3 2025, with a book value per common share of $30.44 [23][24]. - Total interest-earning assets increased to $13,638,036, generating net interest income of $103,399, representing a net interest margin of 3.01% [41]. - Cash and due from banks increased to $1,715,044 as of September 30, 2025, up from $1,156,754 as of June 30, 2025, reflecting a significant growth of about 48.36% [32]. - The total amount of securities available-for-sale at fair value decreased to $662,667 as of September 30, 2025, from $703,461 as of June 30, 2025, a decline of approximately 5.79% [32]. Loan and Deposit Growth - Total deposits increased by $644.3 million year-over-year, reaching $12.06 billion at the end of Q3 2025 [14]. - Core deposits rose by $971.9 million year-over-year, with average non-interest-bearing deposits to average total deposits increasing to 29.9% [7]. - Business loans grew by $160.5 million quarter-over-quarter and $409.1 million year-over-year, totaling $3.06 billion at the end of Q3 2025 [7][10]. - Business loans increased to $3,062,674 as of September 30, 2025, from $2,902,170 as of June 30, 2025, showing a growth of about 5.52% [32]. - Non-interest-bearing checking deposits increased to $3,597,682 as of September 30, 2025, up from $3,432,667 as of June 30, 2025, reflecting a growth of approximately 4.81% [32]. Efficiency and Cost Management - The efficiency ratio improved to 53.8% in Q3 2025, down from 65.9% in Q3 2024, indicating better cost management [20]. - Total non-interest expense for the three months ended September 30, 2025, was $62,224,000, an increase from $57,729,000 in the same period of 2024, reflecting an increase of 7.2% [35]. - Adjusted efficiency ratio (non-GAAP) for Q3 2025 was 53.1%, an improvement from 54.7% in Q2 2025 and 65.6% in Q3 2024 [50]. Credit Quality and Provisions - A credit loss provision of $13.3 million was recorded in Q3 2025, up from $11.6 million in Q3 2024, indicating a cautious approach to credit quality [22]. - The provision for credit losses for the three months ended September 30, 2025, was $13,294,000, compared to $11,603,000 for the same period in 2024, indicating an increase of 14.6% [35]. - Non-performing loans (NPLs) rose to $72,054, with a ratio of NPAs and 90+ Delinquent to total assets at 0.50% [44]. - The allowance for credit losses stood at $94,061 as of September 30, 2025, compared to $93,189 as of June 30, 2025, indicating a slight increase of about 0.94% [32]. Interest Income and Margin - Net interest income for Q3 2025 was $103.4 million, up from $79.9 million in Q3 2024, with a net interest margin of 3.01%, an increase from 2.50% in Q3 2024 [8]. - Total interest income for the three months ended September 30, 2025, was $175,543,000, an increase from $164,239,000 for the same period in 2024, representing a growth of 6.5% [35]. - Net interest income after provision for credit losses for the three months ended September 30, 2025, was $90,105,000, compared to $68,321,000 for the same period in 2024, reflecting a significant increase of 32.0% [35]. - The company reported a net interest rate spread of 2.00% [41].

Core Financial Performance - The company reported net income available to common stockholders of $25.8 million for Q3 2025, down from $27.9 million in Q2 2025 but up from $11.5 million in Q3 2024 [2] - Adjusted net income for Q3 2025 was $26.6 million, with adjusted EPS at $0.61, compared to $11.5 million and $0.29 in Q3 2024 [3] - Pre-tax pre-provision net revenue for Q3 2025 was $53.4 million, an increase of 8% from the previous quarter and 79% year-over-year [4] Net Interest Income and Margin - Net interest income for Q3 2025 was $103.4 million, compared to $98.1 million in Q2 2025 and $79.9 million in Q3 2024 [7] - The net interest margin (NIM) increased to 3.01% in Q3 2025 from 2.98% in Q2 2025 and 2.50% in Q3 2024 [7] - The company anticipates further NIM expansion in Q4 2025 due to improved loan and deposit spreads following a Federal Reserve rate cut [8] Loan and Deposit Growth - Total deposits reached $12.06 billion at the end of Q3 2025, up from $11.74 billion in Q2 2025 and $11.42 billion in Q3 2024 [16] - Core deposits increased by $971.9 million year-over-year, while business loans grew by $160.5 million quarter-over-quarter and $409.1 million year-over-year [10] - The loan-to-deposit ratio decreased to 88.9% at the end of Q3 2025 from 92.6% in the prior quarter [10] Non-Interest Income and Expenses - Non-interest income for Q3 2025 was $12.2 million, up from $11.6 million in Q2 2025 and $7.6 million in Q3 2024 [18] - Total non-interest expense was $62.2 million in Q3 2025, compared to $60.3 million in Q2 2025 and $57.7 million in Q3 2024 [19] - The efficiency ratio improved to 53.8% in Q3 2025 from 55.0% in the previous quarter and 65.9% in Q3 2024 [22] Credit Quality and Capital Management - Non-performing loans increased to $72.1 million at the end of Q3 2025, up from $53.2 million in Q2 2025 [24] - A credit loss provision of $13.3 million was recorded in Q3 2025, compared to $9.2 million in Q2 2025 [24] - Stockholders' equity rose to $1.45 billion at the end of Q3 2025, with a Common Equity Tier 1 Ratio of 11.53% [25][26]