Core Insights - Dime Community Bancshares, Inc. is expanding its commercial banking operations in New Jersey, appointing Dan Fosina as Senior Vice President, Group Leader to lead this initiative [1][2] - The company has identified New Jersey as a key market for growth, with plans to open a new branch in Lakewood [2] - Fosina brings extensive experience in commercial banking, having previously served as Market President at Valley Bank and holding various roles at KeyCorp [3] Company Overview - Dime Community Bancshares, Inc. is the parent company of Dime Community Bank, which has over $14 billion in assets and holds the number one deposit market share among community banks in Greater Long Island [4][5]

Core Points - Dime Community Bancshares, Inc. plans to open a new full-service branch in Locust Valley in 2026, pending regulatory approvals [1][2] - The new branch will be located at 85 Forest Avenue and will be managed by Liz Materia, who has prior experience as a branch manager [2] - The company aims to leverage local ties and capitalize on market disruptions to gain market share on Long Island's North Shore [3] Company Overview - Dime Community Bancshares, Inc. is the parent company of Dime Community Bank, which has over $14 billion in assets and holds the number one deposit market share among community banks in Greater Long Island [4][5]

Core Points - Dime Community Bancshares, Inc. is continuing its partnership with Community Development of Long Island to support affordable housing and financial health for families in Long Island [1] - Dime Community Bancshares, Inc. is the parent company of Dime Community Bank, which has over $14 billion in assets and holds the number one deposit market share among community banks in Greater Long Island [2][3] Company Overview - Dime Community Bancshares, Inc. operates as a trust company chartered in New York State [2] - The company has a significant presence in the community banking sector, particularly in Kings, Queens, Nassau, and Suffolk counties, with a focus on community development [2][3]

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]

Core Insights - The company is experiencing significant growth in business loans, with a year-over-year increase exceeding $400 million and a third-quarter growth of over $160 million compared to the previous quarter [1][3] - The net interest margin (NIM) has increased for six consecutive quarters, surpassing 3%, and is expected to expand further in the fourth quarter due to reduced deposit costs and maintained loan yields [2][11] - The company has a strong liquidity position with a core deposit-funded balance sheet, allowing it to capitalize on lending opportunities as they arise [2][8] Financial Performance - Core earnings per share for the third quarter reached $0.61, representing a 110% year-over-year increase [8] - The reported NIM for the third quarter increased to 3.1%, with total deposits up approximately $320 million compared to the prior quarter [8][10] - Core cash operating expenses for the third quarter were $61.9 million, slightly above prior guidance, primarily due to new hires [9][14] Loan and Deposit Trends - Loan originations, including new lines of credit, increased to $535 million, with a strong loan pipeline currently standing at $1.2 billion [1][5] - The cost of total deposits remained unchanged at 2.09% in the third quarter, with a notable increase in the spread between loans and deposits by approximately 10 basis points following the Fed rate cut [2][11] - Core deposits increased by $1 billion year-over-year, with the deposit teams growing their portfolios to approximately $2.6 billion [3][10] Future Outlook - The company anticipates more meaningful NIM expansion in the fourth quarter and significant opportunities in 2026 based on loan pricing and organic growth across deposits and loans [7][12] - There is a substantial back book repricing opportunity, with approximately $1.35 billion of adjustable and fixed-rate loans expected to reprice or mature in 2026, potentially leading to a 20 basis point increase in NIM [12][13] - The company is focused on organic growth and has plans to open new branch locations in New Jersey and Long Island in 2026 [6][28]

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 slight adjustment to 2.98% when excluding prepayment fees and purchase accounting [10][12] - Total deposits increased by approximately $320 million from the previous quarter [10] 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, reached $535 million, with a weighted average rate of approximately 6.95% [7] - Core deposits increased by $1 billion year-over-year, with a strong focus on growing the deposit portfolio [4] 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 credit side loans declined by approximately $30 million linked quarter, and loans 30 to 89 days past due decreased by 33% [11] 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 significant NIM expansion in 2026 based on loan repricing opportunities and organic growth [14][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit quality and expects to resolve legacy NPAs in the fourth quarter [22] - The company anticipates a relatively flat balance sheet for the remainder of the year, with growth in business loans expected [15] - Management believes the industry is in the later innings of the current credit cycle, with a strong local economy supporting stability [49] Other Important Information - Non-interest income for the quarter was $12.2 million, including a $1.5 million recovery from a past fraud case [11][47] - The common equity tier 1 ratio grew to over 11.5%, and the total capital ratio increased to over 16% [11] Q&A Session Summary Question: Inquiry about charge-offs related to NPAs - 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 in the context of new business verticals - Management stated that the guidance for charge-offs was around 20-30 basis points, with current levels at 31 basis points, and expects to return to historical levels over the next couple of quarters [30][31] Question: Thoughts on deposit betas amid potential rate cuts - Management expressed optimism about maintaining deposit costs and passing on rate cuts effectively, with current deposit costs in the low 190s [34][35] Question: Strategic alternatives including M&A considerations - Management emphasized a focus on organic growth and deploying excess liquidity rather than pursuing M&A at this time [38][45]

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]