Dime(DCOM) - 2025 Q4 - Annual Report

Financial Performance - Net income for 2025 was $110.7 million, a significant increase from $29.1 million in 2024 and $96.1 million in 2023[164]. - Net interest income rose by $89.9 million in 2025, while non-interest income increased by $48.9 million[164]. - Non-interest expenses increased by $26.6 million in 2025, alongside a $23.8 million rise in income tax expense and a $6.9 million increase in provision for credit losses[164]. - Net interest income increased to $408.0 million in 2025 from $318.1 million in 2024, reflecting a significant growth of 28.3%[170]. - Non-interest income rose to $44.9 million in 2025, a $48.9 million increase from a loss of $4.0 million in 2024, mainly due to a $43.0 million change in net loss on sale of securities[180]. - Stockholders' equity increased by $79.3 million during 2025, reaching $1.48 billion, driven by net income of $110.7 million[192]. Loan and Interest Management - Average net loan fees included in interest income were $4.2 million in 2025, up from $1.0 million in 2024 and $1.5 million in 2023, primarily due to increases in deferred fees and prepayment penalty fees[165]. - Interest income reached $685.4 million in 2025, a $35.3 million increase from $650.1 million in 2024, driven by higher income from short-term investments and business loans[171]. - Business loans generated an interest income increase of $19.6 million in 2025, despite a decrease in yield by 32 basis points[172]. - The total loans balance was $10.81 billion in 2025, with a net interest rate spread of 2.03%[170]. - The total loan portfolio as of December 31, 2025, was $7,167,571,000, with business loans totaling $1,051,986,000 and multifamily residential loans at $2,822,927,000[198]. - Variable rate loans totaled $3,589,974,000, with $888,819,000 maturing in less than one year[199]. Credit Losses and Provisions - The allowance for credit losses is evaluated quarterly, with management using a model to determine expected credit losses based on cash flow projections[154][155]. - The provision for credit losses was $43.0 million in 2025, up from $36.1 million in 2024, reflecting updates in macroeconomic forecasts and charge-offs on non-owner-occupied real estate loans[179]. - The allowance for credit losses increased to $97.4 million at December 31, 2025, representing 0.91% of total loans, up from 0.82% in 2024[232]. - Non-accrual loans totaled $52.3 million at December 31, 2025, compared to $49.5 million at December 31, 2024, indicating an increase in non-performing assets[221]. - Loans delinquent between 30 to 59 days reached $28.8 million at December 31, 2025, up from $10.3 million at December 31, 2024, reflecting a significant rise in short-term delinquencies[226]. Asset and Deposit Management - Total assets reached $15.34 billion at December 31, 2025, an increase of $988.4 million from December 31, 2024, primarily due to a $1.07 billion increase in cash and due from banks[187]. - Total deposits increased by $1.16 billion during the year ended December 31, 2025, consistent with the increase of $1.16 billion during the year ended December 31, 2024[249]. - Core deposits (non-CDs) rose by $1.26 billion in 2025, compared to an increase of $1.74 billion in 2024, driven by growth in money market and checking accounts[249]. - Brokered deposits decreased to $200 million at December 31, 2025, from $422.8 million in 2024, reflecting a strategy to reduce reliance on these deposits[241]. - The portion of non-insured deposits represented 34.0% of total deposits as of December 31, 2025, up from 31.2% in 2024[239]. Risk Management and Regulatory Compliance - The company employs heightened risk management practices, including stress testing and monitoring, to mitigate risks associated with economic conditions affecting its loan portfolios[201]. - Management assesses the sensitivity of key quantitative assumptions, indicating that changes in economic conditions could materially affect the allowance for credit losses[157][160]. - The company's financial condition is subject to review by federal bank regulatory agencies, which may require adjustments to the allowance for credit losses[163]. - The Bank maintained a liquidity policy reviewed annually, ensuring adequate liquidity to meet short-term obligations and fund future activities[244]. Interest Rate Sensitivity - The Company is subject to reinvestment risk associated with changes in interest rates, which could affect the yields earned on loans and securities[266]. - The estimated percentage change in net interest income for a gradual increase of +200 Basis Points in Year-One is 4.2% and 11.3% in Year-Two[276]. - The estimated percentage change in net interest income for an instantaneous increase of +200 Basis Points in Year-One is 9.4% and 14.3% in Year-Two[276]. - The average life of loans and securities may be shortened during periods of decreasing interest rates due to increased prepayment activity[266].