Financial Data and Key Metrics Changes - Core EPS for Q4 2025 was $0.79, representing an 88% increase year-over-year, driven by record total revenues of $124 million [3][14] - NIM increased by 10 basis points to 311 basis points, with average earning assets up over $650 million on a linked-quarter basis [4][14] - Core deposits rose by $1.2 billion year-over-year, with total deposits up approximately $800 million compared to the prior quarter [4][15] Business Line Data and Key Metrics Changes - Business loans grew over $175 million on a linked-quarter basis and over $500 million year-over-year, with significant contributions from new industry verticals [5][27] - Non-interest income for Q4 was $11.5 million, exceeding guidance [16] - The loan loss provision declined to $10.9 million, with the allowance to loans increasing to 91 basis points [16] Market Data and Key Metrics Changes - The company has a strong liquidity position, with a total capital ratio exceeding 16% and a common equity tier 1 ratio of 11.66% [6][17] - The company is focused on reducing its CRE concentration ratio to the mid-350% area [21] Company Strategy and Development Direction - The company is committed to organic growth, focusing on building out its commercial banking platform and industry verticals [6][10] - Plans for 2026 include modest NIM expansion in the first half and more substantial growth in the second half due to loan repricing opportunities [17][20] - The company aims to operate at a sub-50% efficiency ratio and continue attracting talented bankers to support growth [8][9] Management's Comments on Operating Environment and Future Outlook - Management noted a strong environment for organic growth, with a target-rich marketplace [6] - The company expects to see significant growth in both revenues and loan portfolios in 2026, driven by loan repricing and core deposit growth [8][19] - Management expressed confidence in the company's ability to navigate market disruptions and capitalize on lending opportunities [6][9] Other Important Information - The company has added new capabilities in various sectors, including Fund Finance and Lender Finance, to enhance its commercial banking offerings [11][12] - The company is focused on geographic expansion, particularly in Manhattan and New Jersey [12] Q&A Session Summary Question: What industries accounted for the growth in business loan balances this quarter? - Approximately $400 million of the $500 million year-over-year growth in business loans came from new specialized industries, with healthcare being a significant contributor [27] Question: How much business do you have in New Jersey? - About 8% to 10% of the loan portfolio is in Northern New Jersey, with a deposit-to-loan ratio of 15%-20% [28] Question: How do you view the deposit growth pipeline and pricing? - The company is offering high twos to low threes on money market accounts to attract new customers, with an overall cost of deposits at $168 [33][34] Question: What is the current status of the rent-regulated loan book? - The 100% rent-regulated book is around $350 million, with maturities and repricings expected to be about $250 million for 2026 [36][38] Question: What is the strategy for deploying cash and securities? - The company is not rushing to buy securities and prefers to maintain flexibility on the balance sheet, with cash expected to be used for loans starting in the second half of the year [48][49]

Financial Performance - Net income available to common stockholders for the year ended December 31, 2025, was $103.4 million, or $2.36 per diluted common share, compared to $21.8 million, or $0.55 per diluted common share for 2024, representing a significant increase [3]. - For Q4 2025, net income available to common stockholders was $30.0 million, or $0.68 per diluted common share, up from $25.8 million, or $0.59 per diluted common share in Q3 2025 [4]. - Adjusted diluted EPS for Q4 2025 was $0.79, an 88% increase year-over-year from $0.42 in Q4 2024 [5]. - The company reported a net income of $31,856 thousand for Q4 2025, compared to a net loss of $20,413 thousand in Q4 2024, reflecting a turnaround in profitability [36]. - Reported net income available to common stockholders for Q4 2025 was $30,035 million, up from $25,849 million in Q3 2025, and a significant increase from a loss of $22,234 million in Q4 2024 [49]. Asset and Deposit Growth - Total deposits increased by $1.16 billion year-over-year, reaching $12.84 billion at the end of Q4 2025 [8]. - Total assets increased to $15,341,631 thousand as of December 31, 2025, up from $14,538,943 thousand as of September 30, 2025, representing a growth of 5.5% [33]. - Non-interest-bearing checking deposits rose to $3,915,081 thousand, an increase of 8.8% from $3,597,682 thousand in the prior quarter [33]. - The company reported a total of $12,794,195 thousand in deposits, an increase of 6.8% from $11,978,362 thousand in the previous quarter [33]. Loan Performance - Business loans grew by $177.9 million on a linked quarter basis and $514.0 million year-over-year, totaling $3.24 billion at the end of Q4 2025 [8]. - Total loans held for investment, net, reached $10,660,836 thousand, slightly up from $10,631,613 thousand in the previous quarter, indicating a marginal increase of 0.3% [33]. - Business loans increased to $3,240,600 thousand, up from $3,062,674 thousand, reflecting a growth of 5.8% [33]. - The average yield on business loans was 6.72%, slightly down from 6.74% in the previous quarter [42]. Efficiency and Profitability Metrics - The efficiency ratio improved to 52.6% in Q4 2025, down from 53.8% in Q3 2025 and significantly better than 105.9% in Q4 2024 [21]. - The return on average assets was 0.84% for Q4 2025, up from 0.77% in Q3 2025 and a recovery from -0.59% in Q4 2024 [38]. - Adjusted efficiency ratio for Q4 2025 improved to 50.3%, compared to 53.1% in Q3 2025 and 58.0% in Q4 2024 [51]. Interest Income and Margin - Total interest income for Q4 2025 was $180,484 thousand, an increase from $165,483 thousand in Q4 2024, representing a 9.0% year-over-year growth [36]. - Net interest income after provision for credit losses was $101,400 thousand for Q4 2025, up from $77,383 thousand in Q4 2024, marking a 31.0% increase [36]. - The net interest margin increased to 3.11% in Q4 2025, compared to 3.01% in Q3 2025 and 2.79% in Q4 2024 [10]. Non-Performing Assets and Credit Quality - Non-performing assets declined by 27% on a linked quarter basis, representing 0.34% of total assets at the end of Q4 2025 [9]. - Total non-performing assets (NPAs) increased to $52,762 thousand in December 2025 from $49,479 thousand in December 2024, reflecting a rise of approximately 6.5% year-over-year [45]. - Non-performing loans (NPLs) for business loans rose to $22,606 thousand in December 2025, compared to $21,005 thousand in September 2025, marking an increase of about 7.6% [45]. - The company emphasized its commitment to enhancing asset quality and managing non-performing loans effectively in the upcoming quarters [45]. Shareholder Returns - Cash dividends paid per common share remained stable at $0.25 for both Q4 2025 and Q4 2024, reflecting consistent shareholder returns [38]. - Book value per common share as of December 31, 2025, was $30.99, compared to $30.44 as of September 30, 2025 and $29.34 as of December 31, 2024 [54].

Core Insights - Dime Community Bancshares, Inc. reported a record quarterly revenue of $124 million for Q4 2025, reflecting strong performance in core deposits and business loans [5][6] - The company achieved a net income available to common stockholders of $30.0 million, or $0.68 per diluted common share, for the quarter ended December 31, 2025, compared to $25.8 million, or $0.59 per diluted common share, for the previous quarter [3][39] - The adjusted diluted EPS for Q4 2025 was $0.79, an 88% increase year-over-year, indicating effective execution of the company's organic growth strategy [4][5] Financial Performance - For the year ended December 31, 2025, net income available to common stockholders was $103.4 million, or $2.36 per diluted common share, significantly up from $21.8 million, or $0.55 per diluted common share, in 2024 [2][39] - Net interest income for Q4 2025 was $112.3 million, up from $103.4 million in Q3 2025 and $91.1 million in Q4 2024, with a net interest margin of 3.11% [7][39] - Total deposits increased by $1.16 billion year-over-year, reaching $12.84 billion at the end of Q4 2025 [15][39] Loan and Deposit Growth - Core deposits (excluding brokered and time deposits) increased by $1.26 billion year-over-year, while business loans grew by $177.9 million on a linked quarter basis and $514.0 million year-over-year [9][15] - The loan-to-deposit ratio declined to 83.8% at the end of Q4 2025, down from 88.9% in the previous quarter, indicating a strong deposit growth relative to loans [9][39] Credit Quality and Capital Management - Non-performing loans decreased to $52.3 million at December 31, 2025, compared to $72.1 million at September 30, 2025, and $49.5 million at December 31, 2024 [22][39] - Stockholders' equity increased to $1.48 billion at December 31, 2025, with a Common Equity Tier 1 Ratio of 11.66% [23][39] Efficiency and Expense Management - The efficiency ratio improved to 52.6% in Q4 2025, down from 53.8% in the previous quarter and significantly better than 105.9% in Q4 2024 [20][39] - Total non-interest expense was $65.1 million in Q4 2025, compared to $62.2 million in Q3 2025 and $60.6 million in Q4 2024 [18][39]

Core Viewpoint - Dime Community Bancshares, Inc. is set to release its earnings for the quarter ended December 31, 2025, on January 21, 2026, before the U.S. equity markets open, with a conference call scheduled for the same day to discuss the financial performance [1]. Group 1 - The earnings release will occur before the market opens on January 21, 2026 [1]. - A conference call will be held at 8:30 a.m. (ET) on January 21, 2026, featuring remarks from President and CEO Stuart Lubow [1]. - There will be a question-and-answer session following the CEO's remarks during the conference call [1]. Group 2 - Participants can access the conference call via a webcast link or by telephone after registering in advance [2]. - Telephone participants will receive a confirmation email with dial-in details and a unique PIN [2]. - It is recommended that all participants join the call 10 minutes early [2]. Group 3 - A replay of the conference call and webcast will be available on-demand for 12 months [3]. Group 4 - Dime Community Bancshares, Inc. is the holding company for 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 [4]. - The company has a significant deposit market share in Kings, Queens, Nassau, and Suffolk counties for community banks with less than $20 billion in assets [5].

Core Viewpoint - Dime Community Bancshares, Inc. has awarded a grant to Junior Achievement of Long Island to support financial literacy, career readiness, and entrepreneurship education for low-to-moderate income communities [1] Company Overview - Dime Community Bancshares, Inc. is the holding company for Dime Community Bank, which is a New York State-chartered trust company with over $14 billion in assets [2] - Dime Community Bank holds the number one deposit market share among community banks on Greater Long Island [2][3]

Core Viewpoint - Dime Community Bancshares, Inc. has awarded a grant to Accompany Capital to support underserved entrepreneurs in New York City, aiming to create jobs and stimulate economic 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 with over $14 billion in assets [2]. - The company holds the number one deposit market share among community banks in Greater Long Island, specifically for community banks with less than $20 billion in assets [2][3].

Core Viewpoint - Dime Community Bancshares, Inc. has received regulatory approvals to open a new branch in Locust Valley, enhancing its presence in the Greater Long Island area [1]. Group 1: Company Overview - Dime Community Bancshares, Inc. is the parent company of Dime Community Bank, which is a New York State-chartered trust company with over $14 billion in assets [3]. - The company holds the number one deposit market share among community banks in Greater Long Island, specifically in Kings, Queens, Nassau, and Suffolk counties for community banks with less than $20 billion in assets [3][4]. Group 2: New Branch Details - The new branch will be located at 85 Forest Avenue and will be managed by Liz Materia, who previously served as a branch manager at The First National Bank of Long Island [2].

Core Viewpoint - Dime Community Bancshares, Inc. has awarded a grant to Transitional Services for Long Island to support housing and services for vulnerable populations in Suffolk County [1] Group 1: Company Overview - Dime Community Bancshares, Inc. is the parent company of Dime Community Bank, which is a New York State-chartered trust company with over $14 billion in assets [2] - Dime Community Bank holds the number one deposit market share among community banks in Greater Long Island [2][3] Group 2: Community Engagement - The grant awarded to Transitional Services for Long Island reflects the company's commitment to supporting local communities by providing essential services to adults, families, and homeless individuals [1]

Core Insights - The focus is on income investing through common shares, preferred shares, or bonds, with occasional discussions on broader economic topics or specific company situations [1]. Group 1 - The author has a background in history, political science, and an MBA with a specialization in Finance and Economics, indicating a strong analytical foundation [1]. - The author has been investing since 2000, suggesting extensive experience in the investment landscape [1]. - The author currently serves as the CEO of an independent living retirement community in Illinois, which may provide insights into the healthcare and retirement sectors [1].

Core Insights - Dime Community Bancshares, Inc. (NASDAQ:DCOM) operates primarily in the New York metropolitan area, providing a range of personal and business banking services, and competes with regional banks such as Flushing Financial Corporation and Brookline Bancorp [1] - DCOM's Return on Invested Capital (ROIC) is 2.15%, while its Weighted Average Cost of Capital (WACC) is 15.71%, resulting in a ROIC to WACC ratio of 0.137, indicating inefficiency in capital use [2][5] - Comparative analysis shows that CVB Financial Corp. (CVBF) and City Holding Company (CHCO) have more favorable ROIC to WACC ratios, suggesting they are more efficient in generating returns than DCOM [4][5] Financial Efficiency Comparison - Flushing Financial Corporation (FFIC) has a negative ROIC of -12.80% and a WACC of 16.70%, leading to a ROIC to WACC ratio of -0.767, indicating greater inefficiency than DCOM [3] - Brookline Bancorp (BRKL) and OceanFirst Financial Corp. (OCFC) also show negative ROIC to WACC ratios of -0.082 and 0.012, respectively, further highlighting inefficiencies in these institutions [3] - In contrast, CVB Financial Corp. (CVBF) has a ROIC of 5.15% and a WACC of 9.05%, resulting in a ratio of 0.570, while CHCO has a ROIC of 18.41% and a WACC of 7.79%, achieving a ratio of 2.361, indicating superior efficiency [4]