Core Viewpoint - Ubisoft is undergoing a significant organizational, operational, and portfolio reset aimed at reclaiming creative leadership, regaining agility, and restoring sustainable growth and robust cash generation [2]. Group 1: Organizational Changes - The reset is structured around three core pillars: a new operating model focused on five specialized creative houses, a refocused portfolio with a revised three-year roadmap, and an acceleration of cost reduction initiatives to enhance structural efficiency [3]. Group 2: Industry Context - The gaming industry has become increasingly selective, particularly in the AAA segment, with rising development costs and heightened competition in the shooter genre [4]. - Despite challenges, successful AAA content holds greater financial potential than ever, indicating a need for improved production processes and quality in releases [4].

Core Insights - The company reported a fourth-quarter net interest margin (NIM) of 311 basis points, with a notable increase for seven consecutive quarters, surpassing the 3% mark [1][7] - Core earnings power improved significantly, with core EPS reaching $0.79, an 88% increase year-over-year, driven by record total revenues of $124 million [3][7] - The company emphasized organic growth, with no reliance on M&A-related adjustments [3][4] Financial Performance - Core pre-tax, pre-provision net revenue was reported at $61.5 million, equating to approximately 163 basis points of average assets [2] - Total deposits increased by about $800 million quarter-over-quarter, with core deposits rising approximately $1.2 billion year-over-year [6][8] - The cost of deposits fell to 185 basis points, down 24 basis points from the previous quarter [9] Loan and Deposit Growth - Business loans rose by over $500 million year-over-year, with a pipeline exceeding $1.3 billion driven by specialty verticals [5][12] - The company aims to reduce its commercial real estate concentration ratio to the mid-350% range while continuing to grow business loans [20] - Non-performing assets (NPAs) are low, representing approximately 34 basis points of total assets, indicating strong credit quality [15] Capital and Guidance - The common equity tier 1 (CET1) ratio increased to 11.66%, highlighting the company's strong capital position [16] - Management expects modest NIM expansion in the first half of 2026, with more substantial growth anticipated in the second half as loan repricing accelerates [17][20] - For 2026, total loan growth is projected to be in the lowest single digits, with growth weighted towards the second half of the year [20] Operational Strategy - The company is focusing on expanding its commercial and specialty finance verticals, with significant growth in healthcare-related lending [13][19] - Management highlighted the importance of relationship-driven deposit gathering, aiming for gradual improvement in the mix of non-interest-bearing deposits [11] - The bank's strategy includes maintaining balance sheet flexibility and a focus on floating-rate loans, which currently make up 35% to 40% of the portfolio [22]

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 [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 a significant liquidity position allowing for future lending opportunities [6][7] Business Line Data and Key Metrics Changes - Business loans grew by over $175 million on a linked-quarter basis and over $500 million year-over-year, with approximately $400 million of this growth coming from new specialized industries [8][44] - Non-interest income for Q4 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 strong deposit growth across all channels, with total deposits up approximately $800 million versus the prior quarter [24] - 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 a strategy to build out its commercial banking platform and industry verticals [10][11] - Plans for 2026 include significant loan repricing opportunities and a target to operate at a sub-50% efficiency ratio [12][13] - The company aims to diversify its balance sheet and loan portfolio, expecting significant growth in both areas [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong organic growth environment and the execution of their strategy, anticipating continued momentum into 2026 [11][14] - The company highlighted a target-rich environment for lending opportunities and expects to see a path to a structurally higher NIM and enhanced earnings power over time [34][31] Other Important Information - The company has a total capital ratio of more than 16%, positioning it favorably against local peers [10][28] - 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? - Approximately $400 million of the $500 million year-over-year growth in business loans came from new specialized industries, particularly healthcare [44] Question: What is the current loan and deposit situation 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% [46] Question: How is the deposit pipeline looking and what are the pricing strategies? - New customer acquisition requires offering high twos to low threes on money market accounts, with an overall cost of deposits around 168 basis points [51][52] Question: What is the status of the rent-regulated loan book? - The 100% rent-regulated book is around $350 million, down from $500 million two years ago, with maturities and repricings expected to be around $250 million for 2026 [58] Question: What is the strategy for deploying cash and securities? - The company is not rushing to deploy cash but is looking for opportunities in the market, with a focus on maintaining a flexible balance sheet [72][75]

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]

Core Insights - The company reported a strong loan pipeline exceeding $1.3 billion with a weighted average interest rate between 6.25% and 6.5% [1] - Core EPS for Q4 was $0.79, marking an 88% increase year-over-year, driven by record total revenues of $124 million [3][13] - The company is focused on organic growth strategies and has successfully reduced its cost of funds while increasing non-interest-bearing deposits to 31% of total deposits [2][40] Financial Performance - Total deposits increased by approximately $800 million compared to the previous quarter, with core deposit growth of around $400 million when excluding seasonal and municipal deposits [15][40] - The net interest margin (NIM) rose to 3.11%, benefiting from a 10 basis point increase and a significant back book loan repricing opportunity [3][19] - Core cash operating expenses for Q4 were below guidance at $62.3 million, while noninterest income exceeded expectations at $11.5 million [17][24] Strategic Initiatives - The company is expanding its commercial banking platform and industry verticals, with a focus on healthcare, lender finance, and sponsor finance [8][12] - A new chief credit officer has been appointed to enhance the management of diversified commercial portfolios [10] - The company aims to reduce its commercial real estate (CRE) concentration ratio to the mid-350% area while continuing to grow business loans [22][24] Future Outlook - 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 [18][21] - Loan growth is projected to be in the low single digits for 2026, with a flat balance sheet expected in the first half and growth in the second half [22][23] - The company is targeting a core cash operating expense range of $255 million to $257 million for 2026, reflecting the impact of new locations and banking teams [23]

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]

Financial Performance - Net income available to common stockholders for the year ended December 31, 2025, was $103.4 million, or $2.36 per diluted common share, compared to $21.8 million, or $0.55 per diluted common share for 2024, representing a significant increase [3]. - For Q4 2025, net income available to common stockholders was $30.0 million, or $0.68 per diluted common share, up from $25.8 million, or $0.59 per diluted common share in Q3 2025 [4]. - Adjusted diluted EPS for Q4 2025 was $0.79, an 88% increase year-over-year from $0.42 in Q4 2024 [5]. - The company reported a net income of $31,856 thousand for Q4 2025, compared to a net loss of $20,413 thousand in Q4 2024, reflecting a turnaround in profitability [36]. - Reported net income available to common stockholders for Q4 2025 was $30,035 million, up from $25,849 million in Q3 2025, and a significant increase from a loss of $22,234 million in Q4 2024 [49]. Asset and Deposit Growth - Total deposits increased by $1.16 billion year-over-year, reaching $12.84 billion at the end of Q4 2025 [8]. - Total assets increased to $15,341,631 thousand as of December 31, 2025, up from $14,538,943 thousand as of September 30, 2025, representing a growth of 5.5% [33]. - Non-interest-bearing checking deposits rose to $3,915,081 thousand, an increase of 8.8% from $3,597,682 thousand in the prior quarter [33]. - The company reported a total of $12,794,195 thousand in deposits, an increase of 6.8% from $11,978,362 thousand in the previous quarter [33]. Loan Performance - Business loans grew by $177.9 million on a linked quarter basis and $514.0 million year-over-year, totaling $3.24 billion at the end of Q4 2025 [8]. - Total loans held for investment, net, reached $10,660,836 thousand, slightly up from $10,631,613 thousand in the previous quarter, indicating a marginal increase of 0.3% [33]. - Business loans increased to $3,240,600 thousand, up from $3,062,674 thousand, reflecting a growth of 5.8% [33]. - The average yield on business loans was 6.72%, slightly down from 6.74% in the previous quarter [42]. Efficiency and Profitability Metrics - The efficiency ratio improved to 52.6% in Q4 2025, down from 53.8% in Q3 2025 and significantly better than 105.9% in Q4 2024 [21]. - The return on average assets was 0.84% for Q4 2025, up from 0.77% in Q3 2025 and a recovery from -0.59% in Q4 2024 [38]. - Adjusted efficiency ratio for Q4 2025 improved to 50.3%, compared to 53.1% in Q3 2025 and 58.0% in Q4 2024 [51]. Interest Income and Margin - Total interest income for Q4 2025 was $180,484 thousand, an increase from $165,483 thousand in Q4 2024, representing a 9.0% year-over-year growth [36]. - Net interest income after provision for credit losses was $101,400 thousand for Q4 2025, up from $77,383 thousand in Q4 2024, marking a 31.0% increase [36]. - The net interest margin increased to 3.11% in Q4 2025, compared to 3.01% in Q3 2025 and 2.79% in Q4 2024 [10]. Non-Performing Assets and Credit Quality - Non-performing assets declined by 27% on a linked quarter basis, representing 0.34% of total assets at the end of Q4 2025 [9]. - Total non-performing assets (NPAs) increased to $52,762 thousand in December 2025 from $49,479 thousand in December 2024, reflecting a rise of approximately 6.5% year-over-year [45]. - Non-performing loans (NPLs) for business loans rose to $22,606 thousand in December 2025, compared to $21,005 thousand in September 2025, marking an increase of about 7.6% [45]. - The company emphasized its commitment to enhancing asset quality and managing non-performing loans effectively in the upcoming quarters [45]. Shareholder Returns - Cash dividends paid per common share remained stable at $0.25 for both Q4 2025 and Q4 2024, reflecting consistent shareholder returns [38]. - Book value per common share as of December 31, 2025, was $30.99, compared to $30.44 as of September 30, 2025 and $29.34 as of December 31, 2024 [54].

Core Insights - Dime Community Bancshares, Inc. reported a record quarterly revenue of $124 million for Q4 2025, reflecting strong performance in core deposits and business loans [5][6] - The company achieved a net income available to common stockholders of $30.0 million, or $0.68 per diluted common share, for the quarter ended December 31, 2025, compared to $25.8 million, or $0.59 per diluted common share, for the previous quarter [3][39] - The adjusted diluted EPS for Q4 2025 was $0.79, an 88% increase year-over-year, indicating effective execution of the company's organic growth strategy [4][5] Financial Performance - For the year ended December 31, 2025, net income available to common stockholders was $103.4 million, or $2.36 per diluted common share, significantly up from $21.8 million, or $0.55 per diluted common share, in 2024 [2][39] - Net interest income for Q4 2025 was $112.3 million, up from $103.4 million in Q3 2025 and $91.1 million in Q4 2024, with a net interest margin of 3.11% [7][39] - Total deposits increased by $1.16 billion year-over-year, reaching $12.84 billion at the end of Q4 2025 [15][39] Loan and Deposit Growth - Core deposits (excluding brokered and time deposits) increased by $1.26 billion year-over-year, while business loans grew by $177.9 million on a linked quarter basis and $514.0 million year-over-year [9][15] - The loan-to-deposit ratio declined to 83.8% at the end of Q4 2025, down from 88.9% in the previous quarter, indicating a strong deposit growth relative to loans [9][39] Credit Quality and Capital Management - Non-performing loans decreased to $52.3 million at December 31, 2025, compared to $72.1 million at September 30, 2025, and $49.5 million at December 31, 2024 [22][39] - Stockholders' equity increased to $1.48 billion at December 31, 2025, with a Common Equity Tier 1 Ratio of 11.66% [23][39] Efficiency and Expense Management - The efficiency ratio improved to 52.6% in Q4 2025, down from 53.8% in the previous quarter and significantly better than 105.9% in Q4 2024 [20][39] - Total non-interest expense was $65.1 million in Q4 2025, compared to $62.2 million in Q3 2025 and $60.6 million in Q4 2024 [18][39]

Core Viewpoint - Dime Community Bancshares, Inc. is set to release its earnings for the quarter ended December 31, 2025, on January 21, 2026, before the U.S. equity markets open, with a conference call scheduled for the same day to discuss the financial performance [1]. Group 1 - The earnings release will occur before the market opens on January 21, 2026 [1]. - A conference call will be held at 8:30 a.m. (ET) on January 21, 2026, featuring remarks from President and 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 telephone after registering in advance [2]. - Telephone participants will receive a confirmation email with dial-in details and a unique PIN [2]. - It is recommended that all participants join the call 10 minutes early [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 has a significant deposit market share in Kings, Queens, Nassau, and Suffolk counties for community banks with less than $20 billion in assets [5].

Core Viewpoint - Dime Community Bancshares, Inc. has awarded a grant to Junior Achievement of Long Island to support financial literacy, career readiness, and entrepreneurship education for low-to-moderate income communities [1] Company Overview - Dime Community Bancshares, Inc. is the holding company for Dime Community Bank, which is a New York State-chartered trust company with over $14 billion in assets [2] - Dime Community Bank holds the number one deposit market share among community banks on Greater Long Island [2][3]