Dime(US:DCOM)2026-01-21 14:30Financial 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]