Financial Data and Key Metrics Changes - Core EPS for Q4 2025 was $0.79, representing an 88% increase year-over-year, driven by record total revenues of $124 million for the quarter [5][23] - NIM increased by 10 basis points to 311 basis points, with average earning assets up over $650 million on a linked-quarter basis [6][24] - Core deposits rose by $1.2 billion year-over-year, with strong growth across all channels [6][24] Business Line Data and Key Metrics Changes - Business loans grew over $175 million on a linked-quarter basis and over $500 million year-over-year, with significant contributions from new specialized industry verticals [8][44] - Non-interest income for the quarter was $11.5 million, exceeding guidance [28] - The loan loss provision declined to $10.9 million, with the allowance to loans increasing to 91 basis points [28] Market Data and Key Metrics Changes - The company reported a total capital ratio of over 16%, indicating strong capital levels compared to local peers [10][28] - Non-interest-bearing deposits reached nearly 31% of total deposits, with a goal to increase this ratio over time [66][68] Company Strategy and Development Direction - The company is focused on organic growth, with plans to expand its commercial banking platform and industry verticals [10][11] - A significant amount of repricing assets is expected in the next two years, providing a tailwind for revenue growth [12][30] - The company aims to operate at a sub-50% efficiency ratio by growing revenues faster than expenses [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong organic growth environment and the ability to capitalize on lending opportunities [11][14] - The company anticipates modest NIM expansion in the first half of 2026, with more substantial growth expected in the latter half due to loan repricing [30][34] - The management highlighted the importance of maintaining a strong liquidity position to support future growth [31][75] Other Important Information - The company has added new capabilities in various commercial banking sectors, including Fund Finance and Lender Finance, to enhance its service offerings [18][21] - The Manhattan branch is operational, with additional locations expected to open by the end of the first year [11] Q&A Session Summary Question: What industries accounted for the growth in business loan balances this quarter? - The growth primarily came from new specialized industries, with healthcare being a significant contributor [44] Question: How much business do you have in New Jersey? - Approximately 8% to 10% of the loan portfolio is in Northern New Jersey, with a deposit-to-loan ratio of about 15%-20% [46] Question: Are you caught up on the SBA loan pipeline? - The company is caught up on the pipeline, but Q1 activity levels may not match Q4 due to the previous quarter's backlog [47] Question: What does the deposit pipeline look like? - The company is seeing strong inflows, with new customers requiring competitive rates to attract deposits [50][51] Question: What is the current status of the rent-regulated loan book? - The rent-regulated book is stable, with maturities and repricings expected to be around $250 million for 2026 [58] Question: What is the strategy for deploying cash and securities? - There is no rush to deploy cash; the company is focused on maintaining flexibility and will consider opportunities as they arise [72][74] Question: What is the current percentage of floating-rate loans? - Floating-rate loans currently make up about 35%-40% of the balance sheet, with expectations for this to increase as new business is generated [76]

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

Core Viewpoint - Dime Community Bancshares, Inc. is launching a new fund finance vertical to enhance its offerings in the private equity sector, led by Michael Watts, aiming to capitalize on growth opportunities in this space [1][2][3]. Group 1: Company Expansion - The new fund finance vertical is part of Dime's growth strategy, which has already seen a significant increase in business loans, growing by over $450 million in the twelve months ending March 31, 2025 [2]. - Dime has previously established successful verticals in Healthcare and Not-for-Profit, indicating a strategic focus on industry-specific expertise [2][3]. - The company aims to recruit talented individuals from various financial institutions to bolster its capabilities and coverage [2]. Group 2: Leadership and Strategy - Michael Watts, previously a Senior Vice President at East West Bank, has been appointed to lead the new fund finance vertical, which is expected to provide customized financing solutions to private equity firms [1][3]. - The expansion into fund finance is seen as a way to diversify Dime's business lines and enhance its competitive position in the market [3]. Group 3: Company Profile - Dime Community Bancshares, Inc. holds over $14 billion in assets and has the number one deposit market share among community banks in Greater Long Island [4].