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]

Core Insights - Dime Community (DCOM) has a strong track record of beating earnings estimates, particularly in the last two quarters with an average surprise of 2.61% [1][2] - The most recent earnings report showed earnings of $0.64 per share, exceeding the Zacks Consensus Estimate of $0.63 per share, resulting in a surprise of 1.59% [2] - The previous quarter also saw a positive surprise, with actual earnings of $0.57 per share against an expected $0.55 per share, delivering a surprise of 3.64% [2] Earnings Estimates and Predictions - Earnings estimates for Dime Community have been trending higher, supported by its history of earnings surprises [5] - The stock currently has a positive Zacks Earnings ESP of +0.50%, indicating bullish sentiment among analysts regarding its near-term earnings potential [8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a strong possibility of another earnings beat in the upcoming report [8] Earnings ESP and Market Behavior - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [6] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [7] - It is crucial for investors to check a company's Earnings ESP before quarterly releases to enhance the likelihood of successful investment decisions [10]

Core Viewpoint - Dime Community Bancshares, Inc. is set to release its earnings for the third quarter of 2025 on October 23, 2025, before the U.S. equity markets open, with a conference call scheduled for the same day to discuss financial performance [1]. Group 1 - The earnings announcement will occur before the market opens on October 23, 2025 [1]. - A conference call will be held at 8:00 a.m. (ET) on the same day, featuring remarks from the 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 registering in advance for telephone participation [2]. - Telephone participants will receive a confirmation email with details on how to join the call, including a unique PIN [2]. - It is recommended that participants dial in 10 minutes prior to the start time [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 focuses on community banking and has a significant presence in Kings, Queens, Nassau, and Suffolk counties [5].

Core Points - Dime Community Bancshares, Inc. is actively supporting the Alzheimer's Association by participating in the Walk to End Alzheimer's on Long Island on October 4th, 2025 [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 banks with less than $20 billion in assets [3]

Group 1 - Dime Community Bancshares, Inc. sponsored the American Heart Association Heart Walk for 2025 on Long Island, with Jeffrey Barber serving as Chairman [1] - 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 on Greater Long Island [2][3]

Core Points - Dime Community Bancshares, Inc. has opened a new full-service branch in Manhattan after receiving all necessary regulatory approvals [1] - The new branch is located at 232 Madison Avenue and will be managed by Lisa Reardon, a former branch manager at The First National Bank of Long Island [1][2] - The company aims to strategically expand its physical presence in important markets, with a focus on capitalizing on market disruptions [2] Company Overview - Dime Community Bancshares, Inc. is the parent company of Dime Community Bank, which has over $14 billion in assets [3] - The bank holds the number one deposit market share among community banks in Greater Long Island [3][4]

Core Insights - Dime Community Bancshares, Inc. is expanding its commercial lending platform by hiring several experienced banking professionals to enhance its capabilities in mid-corporate and specialty lending, as well as loan syndications [1][5] 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 [2][3] Key Hires - Ryan Kent has joined as Director of Commercial Strategic Initiatives, previously a Senior Manager at Deloitte and Senior Managing Director at Webster Bank [5] - Elvis Grgurovic has been appointed Co-Head of the Mid Corporate vertical, previously a Managing Director at Webster Bank [5] - Eric Pelletier has taken the role of Head of Syndications, also a former Managing Director at Webster Bank [5] - Matt Greene has joined as Senior Vice President in the Mid-Corporate and Specialty Finance vertical, previously a Senior Managing Director at Webster Bank [5] - Barry Renow has been appointed Senior Vice President in the Mid-Corporate and Specialty Finance vertical, previously a Senior Vice President at BHI USA [5] Management Commentary - The President and CEO of Dime expressed excitement about the new hires, emphasizing their alignment with the company's growth plan and focus on building a diversified commercial loan portfolio [1] - The Senior Executive Vice President of Commercial Lending highlighted that the new professionals will enhance the bank's capabilities and deliver customized credit solutions to clients [1]

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)