Dime(US:DCOM)2023-04-28 17:36Financial Data and Key Metrics Changes - The reported net income for the first quarter was $35.5 million, with earnings per share up 12% year-over-year [27] - The net interest margin (NIM) adjusted for purchase accounting was 2.76%, down from 3.14% in the prior quarter, with expectations for further declines in the coming quarters [27] - Core cash operating expenses for Q1 2023 were approximately $47 million, with a core efficiency ratio of 48.9% [11] Business Line Data and Key Metrics Changes - Core noninterest income for the first quarter was approximately $10.4 million, driven by strong swap-related revenue [11] - The company expects to grow loans by approximately $100 million in the second quarter, supported by a loan pipeline of about $1 billion with an average yield of 7.17% [36][40] - The multifamily portfolio remains relatively flat, with zero multifamily loans greater than 60 days delinquent [4] Market Data and Key Metrics Changes - The cumulative deposit beta for the tightening cycle has been approximately 30%, favorably compared to metro New York competitors [5] - Consumer deposits represent 33% of total deposits, with collateralized and insured municipal deposits at 20% [21] Company Strategy and Development Direction - The company aims to enhance its deposit franchise by hiring experienced teams from Signature Bank, managing a book of business at their peak of approximately $1 billion [7] - The strategy includes supporting key clients through various operating environments while prudently growing loans and enhancing full-service relationships [24] - The company is focused on relationship-based banking and plans to roll out a new escrow management commercial system by the end of May [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in outperforming in potential recessionary environments due to a solid multifamily portfolio and low credit losses [4] - The company has not seen meaningful early warning indicators of credit deterioration, with NPAs and 90-day past dues down to 0.23% [9] - Management anticipates a normalization of the loan-to-deposit ratio over time as prepayments in the multifamily portfolio are expected to increase [8] Other Important Information - The company added approximately $300 million of broker deposits in March to enhance on-balance sheet liquidity [21] - A $3.6 million provision was released this quarter, tied to a reduction in acquired pooled PCD loans, indicating improved credit quality [28] Q&A Session Summary Question: What is the expectation for NIM stabilization? - Management expects a couple of quarters of pressure on NIM, followed by stabilization and improvements in 2024 [30] Question: What is driving the expectation for $100 million in loan growth? - The loan pipeline is approximately $1 billion, with a focus on servicing existing customers and relationship banking [36] Question: How is the company managing its liquidity? - The company is monitoring liquidity levels and does not expect to maintain higher levels than currently observed [54] Question: What is the outlook for the commercial real estate market? - The company has a small office portfolio in Manhattan with a low LTV and has not seen significant weakness in the multifamily market [79]