Core Points - Dime Community Bancshares, Inc. announced a senior executive succession plan, with Conrad Gunther set to retire at the end of 2025, and Thomas X. Geisel appointed as Chief Commercial Officer to take over Gunther's responsibilities [1][5] - Avi Reddy, currently the Chief Financial Officer, will expand his role to include Chief Operating Officer, overseeing all client-facing deposit businesses and working on major strategic initiatives [1][5] - The company has over $14 billion in assets and holds the number one deposit market share among community banks in Greater Long Island [2][3] Executive Changes - Conrad Gunther has had a successful 50-year career in commercial banking and has been pivotal in transforming Dime into a diversified commercial bank since joining in 2017 [1] - The succession plan aims to allow Gunther more family time while ensuring the company's growth trajectory continues [1] - Tom Geisel's integration into the organization has been seamless, contributing positively to the company's growth [1] Company Overview - Dime Community Bancshares, Inc. is the parent company of Dime Community Bank, which is a New York State-chartered trust company [2] - The bank has a significant presence in the Greater Long Island area, particularly in deposit market share among community banks [2][3]

Core Insights - The company is experiencing significant growth in business loans, with a year-over-year increase exceeding $400 million and a third-quarter growth of over $160 million compared to the previous quarter [1][3] - The net interest margin (NIM) has increased for six consecutive quarters, surpassing 3%, and is expected to expand further in the fourth quarter due to reduced deposit costs and maintained loan yields [2][11] - The company has a strong liquidity position with a core deposit-funded balance sheet, allowing it to capitalize on lending opportunities as they arise [2][8] Financial Performance - Core earnings per share for the third quarter reached $0.61, representing a 110% year-over-year increase [8] - The reported NIM for the third quarter increased to 3.1%, with total deposits up approximately $320 million compared to the prior quarter [8][10] - Core cash operating expenses for the third quarter were $61.9 million, slightly above prior guidance, primarily due to new hires [9][14] Loan and Deposit Trends - Loan originations, including new lines of credit, increased to $535 million, with a strong loan pipeline currently standing at $1.2 billion [1][5] - The cost of total deposits remained unchanged at 2.09% in the third quarter, with a notable increase in the spread between loans and deposits by approximately 10 basis points following the Fed rate cut [2][11] - Core deposits increased by $1 billion year-over-year, with the deposit teams growing their portfolios to approximately $2.6 billion [3][10] Future Outlook - The company anticipates more meaningful NIM expansion in the fourth quarter and significant opportunities in 2026 based on loan pricing and organic growth across deposits and loans [7][12] - There is a substantial back book repricing opportunity, with approximately $1.35 billion of adjustable and fixed-rate loans expected to reprice or mature in 2026, potentially leading to a 20 basis point increase in NIM [12][13] - The company is focused on organic growth and has plans to open new branch locations in New Jersey and Long Island in 2026 [6][28]

Financial Data and Key Metrics Changes - Core pre-tax, pre-provision income for Q3 2025 was $54.4 million, up from $49.4 million in Q2 2025 and $29.8 million year-over-year [3][4] - Core EPS for Q3 was $0.61, representing a 110% year-over-year increase [10] - Reported NIM increased to 3.01%, with a slight adjustment to 2.98% when excluding prepayment fees and purchase accounting [10][12] - Total deposits increased by approximately $320 million from the previous quarter [10] Business Line Data and Key Metrics Changes - Business loans grew over $160 million in Q3, compared to $110 million in Q2, with year-over-year growth exceeding $400 million [7] - Loan originations, including new lines of credit, reached $535 million, with a weighted average rate of approximately 6.95% [7] - Core deposits increased by $1 billion year-over-year, with a strong focus on growing the deposit portfolio [4] Market Data and Key Metrics Changes - Non-performing assets (NPAs) were up slightly but represented only 50 basis points of total assets, which is favorable compared to peers [4] - The credit side loans declined by approximately $30 million linked quarter, and loans 30 to 89 days past due decreased by 33% [11] Company Strategy and Development Direction - The company is focused on organic growth, particularly in business loans and core deposits, while managing its commercial real estate concentration ratio [8][38] - New branch openings in Manhattan and New Jersey are part of the strategy to expand market presence [8] - The company aims for significant NIM expansion in 2026 based on loan repricing opportunities and organic growth [14][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit quality and expects to resolve legacy NPAs in the fourth quarter [22] - The company anticipates a relatively flat balance sheet for the remainder of the year, with growth in business loans expected [15] - Management believes the industry is in the later innings of the current credit cycle, with a strong local economy supporting stability [49] Other Important Information - Non-interest income for the quarter was $12.2 million, including a $1.5 million recovery from a past fraud case [11][47] - The common equity tier 1 ratio grew to over 11.5%, and the total capital ratio increased to over 16% [11] Q&A Session Summary Question: Inquiry about charge-offs related to NPAs - Management clarified that charge-offs were primarily related to owner-occupied and non-owner-occupied commercial real estate, with no multifamily loans involved [21][22] Question: Expectations on multifamily payoffs and future prepayments - Management indicated that while there were significant payoffs this quarter, future prepayments are expected to normalize [24] Question: Discussion on normalized charge-offs in the context of new business verticals - Management stated that the guidance for charge-offs was around 20-30 basis points, with current levels at 31 basis points, and expects to return to historical levels over the next couple of quarters [30][31] Question: Thoughts on deposit betas amid potential rate cuts - Management expressed optimism about maintaining deposit costs and passing on rate cuts effectively, with current deposit costs in the low 190s [34][35] Question: Strategic alternatives including M&A considerations - Management emphasized a focus on organic growth and deploying excess liquidity rather than pursuing M&A at this time [38][45]

Financial Data and Key Metrics Changes - Core pre-tax, pre-provision income for Q3 2025 was $54.4 million, up from $49.4 million in Q2 2025 and $29.8 million year-over-year [3][4] - Core EPS for Q3 was $0.61, representing a 110% year-over-year increase [10] - Reported NIM increased to 3.01%, with a significant increase in the spread between loans and deposits following the Fed rate cut [10][5] Business Line Data and Key Metrics Changes - Business loans grew over $160 million in Q3, compared to $110 million in Q2, with year-over-year growth exceeding $400 million [7] - Loan originations, including new lines of credit, increased to $535 million, with a weighted average rate of approximately 6.95% [7] - Core deposits increased by $1 billion year-over-year, with total deposits up approximately $320 million from the prior quarter [4][10] Market Data and Key Metrics Changes - Non-performing assets (NPAs) were up slightly but represented only 50 basis points of total assets, which is favorable compared to peers [4] - The company maintained a strong liquidity position with a core deposit-funded balance sheet [4] Company Strategy and Development Direction - The company is focused on organic growth, particularly in business loans and core deposits, while managing its commercial real estate concentration ratio [8][38] - New branch openings in Manhattan and New Jersey are part of the strategy to expand market presence [8] - The company aims for NIM expansion in the fourth quarter and significant opportunities in 2026 based on loan repricing [8][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit quality and expects resolution of legacy NPAs in Q4 [22] - The company anticipates a gradual improvement in NIM due to reduced deposit costs and stable loan yields [12][13] - Management believes the industry is in the later innings of the credit cycle, with a strong local economy and no significant stress expected [49] Other Important Information - Non-interest income for the quarter was $12.2 million, including a $1.5 million fraud recovery [11][46] - The common equity tier 1 ratio grew to over 11.5%, and total capital ratio increased to over 16% [11][12] Q&A Session Summary Question: Inquiry about charge-offs related to non-performing loans - Management clarified that charge-offs were primarily related to owner-occupied and non-owner-occupied commercial real estate, with no multifamily loans involved [21][22] Question: Expectations on multifamily payoffs and future prepayments - Management indicated that while there were significant payoffs this quarter, future prepayments are expected to normalize [24] Question: Discussion on normalized charge-offs and future expectations - Management stated that charge-offs are currently at 31 basis points and expect to return to historical levels as new businesses are built out [30][31] Question: Insights on deposit betas with potential rate cuts - Management noted that gradual rate cuts would help maintain deposit costs, with current costs in the low 190s [34][35] Question: Thoughts on M&A and strategic alternatives - Management emphasized a focus on organic growth and deploying excess liquidity rather than pursuing M&A at this time [38][45] Question: Discussion on stock repurchases given capital ratios - Management confirmed that discussions on stock repurchases have begun, with a focus on deploying capital effectively before considering buybacks [44][45]

Financial Data and Key Metrics Changes - Core earnings power showed significant growth with pre-tax, pre-provision income of $54.4 million in Q3 2025, up from $49.4 million in Q2 2025 and $29.8 million year-over-year [3][4] - Core EPS for Q3 was $0.61 per share, representing a 110% year-over-year increase [9] - Reported NIM increased to 3.01%, with a notable increase in the spread between loans and deposits by approximately 10 basis points following the Fed rate cut [9][12] Business Line Data and Key Metrics Changes - Business loans grew over $160 million in Q3 2025, compared to $110 million in Q2 2025, with year-over-year growth exceeding $400 million [6] - Loan originations, including new lines of credit, reached $535 million, with a weighted average rate of approximately 6.95% [6] - Core deposits increased by $1 billion year-over-year, with total deposits up approximately $320 million from the prior quarter [4][9] Market Data and Key Metrics Changes - Non-performing assets (NPAs) increased slightly but remained low at 50 basis points of total assets, which is favorable compared to peers [4] - The company maintained a strong liquidity position with a core deposit-funded balance sheet, allowing it to capitalize on lending opportunities [4][7] Company Strategy and Development Direction - The company is focused on organic growth, particularly in business loans and core deposits, while managing its commercial real estate concentration ratio [7][33] - New branch openings in Manhattan and New Jersey are part of the strategy to expand market presence [7] - The company aims for continued NIM expansion, with expectations for significant opportunities in 2026 based on loan repricing [7][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit quality and expects to resolve legacy NPAs in Q4, projecting a stable NPA range [19][20] - The outlook for the credit cycle is cautiously optimistic, with expectations of muddling along rather than entering a significant stress environment [40] - Management anticipates a path to a structurally higher NIM and enhanced earnings power over time, with targets of 3.25% and 3.50% NIM in the future [12][13] Other Important Information - Non-interest income for the quarter was $12.2 million, including a $1.5 million fraud recovery from a legacy issue [10][38] - The company is considering stock repurchases as capital ratios improve, with a focus on deploying capital effectively [36][37] Q&A Session Summary Question: Inquiry about NPA formations and charge-offs - Management clarified that charge-offs were primarily related to owner-occupied and non-owner-occupied commercial real estate, with expectations for resolution of legacy NPAs in Q4 [19] Question: Expectations on charge-offs normalization - Management indicated that normalized charge-offs were expected to be around 20 to 30 basis points, with current levels at 31 basis points [25][27] Question: Market appetite for multifamily products - Management noted that there was no significant differentiation in refinancing between market rate and rent-regulated multifamily loans, with a high percentage of loans being refinanced [28] Question: Expectations on deposit betas with potential rate cuts - Management expressed confidence in maintaining deposit costs while growing deposits, with expectations of similar deposit betas in future rate cuts [29][30] Question: Thoughts on M&A and strategic alternatives - Management emphasized a focus on organic growth and deploying excess liquidity, while remaining open to maximizing shareholder value [33][34] Question: Discussion on stock repurchases - Management confirmed that discussions on stock repurchases have begun, with a focus on balancing capital deployment and maintaining a strong capital position [36][37]

Financial Data and Key Metrics Changes - Core pre-tax pre-provision income for Q3 2025 was $54.4 million, up from $49.4 million in Q2 2025 and $29.8 million a year ago, indicating significant growth [6] - Core EPS for Q3 was $0.61 per share, representing a 110% year-over-year increase [14] - The reported NIM increased to 3.1% in Q3, marking a continuous increase for six consecutive quarters [14][7] - Total deposits increased by approximately $320 million from the previous quarter [15] Business Line Data and Key Metrics Changes - Business loans grew by over $160 million in Q3, compared to $110 million in Q2, with year-over-year growth exceeding $400 million [8] - Loan originations, including new lines of credit, increased to $535 million [8] - The weighted average rate on new loan originations was approximately 6.95% [8] Market Data and Key Metrics Changes - The company has a strong loan pipeline currently standing at $1.2 billion, with a weighted average rate between 6.56% and 6.75% [9] - Core deposits increased by $1 billion year-over-year, reflecting strong inflows across the branch network [6] Company Strategy and Development Direction - The company is focused on organic growth, particularly in business loans and core deposits, while maintaining a strong liquidity position [12][49] - A new branch was opened in Manhattan, with plans for additional locations in New Jersey and Long Island [11] - The company aims for continued NIM expansion, with expectations of reaching mid to high 3% in the medium to long term [49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit quality, with NPAs at 50 basis points of total assets, and a positive outlook for resolving legacy NPAs [29] - The company anticipates more substantial NIM expansion in Q4 2025, driven by reduced deposit costs and maintained loan yields [17] - Management believes the industry is in the later innings of the credit cycle, with expectations of a gradual improvement in the operating environment [63] Other Important Information - The company reported a $1.5 million positive benefit from a fraud recovery related to Legacy Bridge [15][61] - The common equity Tier one ratio grew to over 11.5%, providing a competitive advantage [16] Q&A Session Summary Question: Regarding NPA formations and charge-offs - Management clarified that charge-offs were primarily related to owner-occupied and non-owner-occupied real estate, with no multifamily-related charge-offs [28] Question: Expectations on multifamily payoffs - Management indicated that while there were significant payoffs this quarter, future paydowns would normalize [30] Question: Thoughts on normalized charge-offs - Management expects charge-offs to stabilize around 20 to 30 basis points, with new business lines not contributing to increased charge-offs [36] Question: Market appetite for multifamily products - Management noted no significant differentiation in refinancing between market rate and rent-regulated multifamily loans [40] Question: Expectations on deposit betas with potential rate cuts - Management indicated that gradual rate cuts would help maintain deposit costs, with expectations of similar reductions in future rate cuts [42] Question: Thoughts on stock repurchases - Management is considering stock repurchases, especially as capital ratios are strong and the CRE concentration ratio has improved [55] Question: Industry credit cycle outlook - Management believes the industry is in the later innings of the credit cycle, with expectations of a stable environment moving forward [63]

Core Insights - Dime Community (DCOM) reported quarterly earnings of $0.61 per share, missing the Zacks Consensus Estimate of $0.67 per share, but showing an increase from $0.29 per share a year ago, resulting in an earnings surprise of -8.96% [1] - The company posted revenues of $115.61 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 3.68% and up from $87.56 million year-over-year [2] - Dime Community shares have underperformed the market, losing about 3.5% since the beginning of the year compared to the S&P 500's gain of 13.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.77 on revenues of $117.36 million, and for the current fiscal year, it is $2.60 on revenues of $442.33 million [7] - The estimate revisions trend for Dime Community was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Zacks Industry Rank for Banks - Southeast is currently in the top 20% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Net income available to common stockholders for Q3 2025 was $25.8 million, or $0.59 per diluted share, compared to $11.5 million, or $0.29 per diluted share in Q3 2024, representing a 103% year-over-year increase in earnings per share [2][3]. - Adjusted net income for Q3 2025 was $26.6 million, with adjusted EPS of $0.61, compared to $11.5 million and $0.29 per share in Q3 2024 [3]. - Non-interest income for Q3 2025 was $12.2 million, compared to $7.6 million in Q3 2024, reflecting a strong increase [16]. - Net income for the three months ended September 30, 2025, was $27,671,000, a decrease from $29,697,000 in the same period of 2024, representing a decline of 6.8% [35]. - The diluted earnings per share (EPS) for the three months ended September 30, 2025, was $0.59, compared to $0.64 for the same period in 2024, reflecting a decrease of 7.8% [37]. - Adjusted net income available to common stockholders (non-GAAP) for Q3 2025 was $26,588,000, reflecting a slight decrease from $27,863,000 in Q2 2025 [48]. - Adjusted EPS (Diluted) for Q3 2025 was $0.61, down from $0.64 in Q2 2025 and up from $0.29 in Q3 2024 [48]. Asset and Liability Management - Total assets as of September 30, 2025, reached $14,538,943, an increase from $14,207,935 as of June 30, 2025, representing a growth of approximately 2.33% [32]. - Total liabilities rose to $13,086,601 as of September 30, 2025, compared to $12,776,929 as of June 30, 2025, an increase of approximately 2.43% [32]. - Stockholders' equity increased to $1.45 billion at the end of Q3 2025, with a book value per common share of $30.44 [23][24]. - Total interest-earning assets increased to $13,638,036, generating net interest income of $103,399, representing a net interest margin of 3.01% [41]. - Cash and due from banks increased to $1,715,044 as of September 30, 2025, up from $1,156,754 as of June 30, 2025, reflecting a significant growth of about 48.36% [32]. - The total amount of securities available-for-sale at fair value decreased to $662,667 as of September 30, 2025, from $703,461 as of June 30, 2025, a decline of approximately 5.79% [32]. Loan and Deposit Growth - Total deposits increased by $644.3 million year-over-year, reaching $12.06 billion at the end of Q3 2025 [14]. - Core deposits rose by $971.9 million year-over-year, with average non-interest-bearing deposits to average total deposits increasing to 29.9% [7]. - Business loans grew by $160.5 million quarter-over-quarter and $409.1 million year-over-year, totaling $3.06 billion at the end of Q3 2025 [7][10]. - Business loans increased to $3,062,674 as of September 30, 2025, from $2,902,170 as of June 30, 2025, showing a growth of about 5.52% [32]. - Non-interest-bearing checking deposits increased to $3,597,682 as of September 30, 2025, up from $3,432,667 as of June 30, 2025, reflecting a growth of approximately 4.81% [32]. Efficiency and Cost Management - The efficiency ratio improved to 53.8% in Q3 2025, down from 65.9% in Q3 2024, indicating better cost management [20]. - Total non-interest expense for the three months ended September 30, 2025, was $62,224,000, an increase from $57,729,000 in the same period of 2024, reflecting an increase of 7.2% [35]. - Adjusted efficiency ratio (non-GAAP) for Q3 2025 was 53.1%, an improvement from 54.7% in Q2 2025 and 65.6% in Q3 2024 [50]. Credit Quality and Provisions - A credit loss provision of $13.3 million was recorded in Q3 2025, up from $11.6 million in Q3 2024, indicating a cautious approach to credit quality [22]. - The provision for credit losses for the three months ended September 30, 2025, was $13,294,000, compared to $11,603,000 for the same period in 2024, indicating an increase of 14.6% [35]. - Non-performing loans (NPLs) rose to $72,054, with a ratio of NPAs and 90+ Delinquent to total assets at 0.50% [44]. - The allowance for credit losses stood at $94,061 as of September 30, 2025, compared to $93,189 as of June 30, 2025, indicating a slight increase of about 0.94% [32]. Interest Income and Margin - Net interest income for Q3 2025 was $103.4 million, up from $79.9 million in Q3 2024, with a net interest margin of 3.01%, an increase from 2.50% in Q3 2024 [8]. - Total interest income for the three months ended September 30, 2025, was $175,543,000, an increase from $164,239,000 for the same period in 2024, representing a growth of 6.5% [35]. - Net interest income after provision for credit losses for the three months ended September 30, 2025, was $90,105,000, compared to $68,321,000 for the same period in 2024, reflecting a significant increase of 32.0% [35]. - The company reported a net interest rate spread of 2.00% [41].

Core Financial Performance - The company reported net income available to common stockholders of $25.8 million for Q3 2025, down from $27.9 million in Q2 2025 but up from $11.5 million in Q3 2024 [2] - Adjusted net income for Q3 2025 was $26.6 million, with adjusted EPS at $0.61, compared to $11.5 million and $0.29 in Q3 2024 [3] - Pre-tax pre-provision net revenue for Q3 2025 was $53.4 million, an increase of 8% from the previous quarter and 79% year-over-year [4] Net Interest Income and Margin - Net interest income for Q3 2025 was $103.4 million, compared to $98.1 million in Q2 2025 and $79.9 million in Q3 2024 [7] - The net interest margin (NIM) increased to 3.01% in Q3 2025 from 2.98% in Q2 2025 and 2.50% in Q3 2024 [7] - The company anticipates further NIM expansion in Q4 2025 due to improved loan and deposit spreads following a Federal Reserve rate cut [8] Loan and Deposit Growth - Total deposits reached $12.06 billion at the end of Q3 2025, up from $11.74 billion in Q2 2025 and $11.42 billion in Q3 2024 [16] - Core deposits increased by $971.9 million year-over-year, while business loans grew by $160.5 million quarter-over-quarter and $409.1 million year-over-year [10] - The loan-to-deposit ratio decreased to 88.9% at the end of Q3 2025 from 92.6% in the prior quarter [10] Non-Interest Income and Expenses - Non-interest income for Q3 2025 was $12.2 million, up from $11.6 million in Q2 2025 and $7.6 million in Q3 2024 [18] - Total non-interest expense was $62.2 million in Q3 2025, compared to $60.3 million in Q2 2025 and $57.7 million in Q3 2024 [19] - The efficiency ratio improved to 53.8% in Q3 2025 from 55.0% in the previous quarter and 65.9% in Q3 2024 [22] Credit Quality and Capital Management - Non-performing loans increased to $72.1 million at the end of Q3 2025, up from $53.2 million in Q2 2025 [24] - A credit loss provision of $13.3 million was recorded in Q3 2025, compared to $9.2 million in Q2 2025 [24] - Stockholders' equity rose to $1.45 billion at the end of Q3 2025, with a Common Equity Tier 1 Ratio of 11.53% [25][26]

Core Insights - Dime Community (DCOM) has a strong track record of beating earnings estimates, particularly in the last two quarters with an average surprise of 2.61% [1][2] - The most recent earnings report showed earnings of $0.64 per share, exceeding the Zacks Consensus Estimate of $0.63 per share, resulting in a surprise of 1.59% [2] - The previous quarter also saw a positive surprise, with actual earnings of $0.57 per share against an expected $0.55 per share, delivering a surprise of 3.64% [2] Earnings Estimates and Predictions - Earnings estimates for Dime Community have been trending higher, supported by its history of earnings surprises [5] - The stock currently has a positive Zacks Earnings ESP of +0.50%, indicating bullish sentiment among analysts regarding its near-term earnings potential [8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a strong possibility of another earnings beat in the upcoming report [8] Earnings ESP and Market Behavior - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [6] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [7] - It is crucial for investors to check a company's Earnings ESP before quarterly releases to enhance the likelihood of successful investment decisions [10]