Dime(DCOM) - 2024 Q4 - Annual Report

Financial Performance - Net income for 2024 was $29.1 million, a significant decrease from$96.1 million in 2023 and $152.6 million in 2022[160]. - Non-interest income decreased by$40.2 million in 2024, while provision for credit losses increased by $33.3 million and non-interest expense rose by$13.4 million[160]. - Net interest income increased by $1.5 million in 2024, contrasting with a decrease of$63.3 million in 2023[160]. - Non-interest income recorded a loss of $4.0 million in 2024, a decrease of$40.2 million from 2023, mainly due to a $41.4 million net loss on the sale of securities[172]. - Net income for 2023 was$96,094,000, a significant decrease of 37% compared to $152,556,000 in 2022[280]. - Total comprehensive income for 2023 was$75,645,000, compared to $98,894,000 in 2022, indicating a decrease of 24$29,084 thousand, a decrease of 69.8% compared to $96,094 thousand in 2023 and a decrease of 81.0$152,556 thousand in 2022[286]. Credit Losses and Risk Management - The allowance for credit losses is established through a provision based on expected losses inherent in the loan portfolio, with management evaluating its adequacy quarterly[151]. - If the four-quarter national unemployment rate forecast had increased by 100 basis points, the quantitative allowance for credit losses (ACL) reserve would have increased by 11.8%[154]. - Management's estimates regarding credit losses are subject to significant judgment and may result in material changes to the allowance based on economic conditions[155]. - Regulatory agencies periodically review the allowance for credit losses and may require adjustments based on their assessments[159]. - Provision for credit losses was $36.1 million in 2024, significantly higher than$2.8 million in 2023, reflecting additional provisioning for multifamily, C&I, and criticized loan portfolios[171]. - The provision for credit losses increased to $36,113,000 in 2023 from$2,770,000 in 2022, marking a significant rise[278]. - The allowance for credit losses to total loans ratio rose to 0.82% at December 31, 2024, from 0.67% at December 31, 2023, indicating a more conservative approach to credit risk management[228]. - Non-accrual loans totaled $49.5 million at December 31, 2024, up from$29.1 million at December 31, 2023, indicating a significant increase in loan delinquencies[215]. - Loans delinquent between 60 to 89 days surged to $31.3 million at December 31, 2024, compared to only$1.3 million at December 31, 2023, reflecting a concerning trend in credit quality[222]. Interest Income and Expenses - Net interest income for 2024 was $318.1 million, slightly up from$316.6 million in 2023, but down from $379.9 million in 2022[167]. - Interest income increased to$650.1 million in 2024, up $40.7 million from 2023, driven by a$254.5 million increase in average business loan balances and a 45-basis point increase in yield[168]. - Interest expense rose to $332.1 million in 2024, an increase of$39.3 million from 2023, primarily due to a $767.4 million increase in average balances of money market accounts and a 77-basis point increase in rates[170]. - The weighted average yield of securities available-for-sale was 3.99$13.62 billion in 2024, slightly down from $13.63 billion in 2023[1]. - Total assets reached$14.35 billion at December 31, 2024, an increase of $717.3 million from the previous year, driven by a$826.0 million increase in cash and due from banks[177]. - Total liabilities increased to $12.96 billion at December 31, 2024, up$547.0 million, mainly due to a $1.16 billion increase in deposits[182]. - Total loans outstanding at the end of the period were$10.87 billion as of December 31, 2024, compared to $10.77 billion at December 31, 2023[228]. Deposits and Funding - Total deposits increased by$1.16 billion during the year ended December 31, 2024, compared to an increase of $276.2 million during the year ended December 31, 2023[245]. - Core deposits increased by$1.74 billion during the year ended December 31, 2024, while they decreased by $216.1 million during the year ended December 31, 2023[245]. - Brokered deposits decreased to$422.8 million at December 31, 2024, from $898.7 million at December 31, 2023[237]. - The weighted average interest rate on total deposits decreased to 2.09$1.28 billion in 2024 from $1.22 billion in 2023[1]. - The ending balance of stockholders' equity as of December 31, 2024, was$1,396,517 thousand, an increase from $1,226,225 thousand in 2023[284]. - Cash dividends paid to common stockholders in 2024 totaled$38,036 thousand, compared to $37,302 thousand in 2023 and$36,791 thousand in 2022, reflecting a consistent dividend policy[286]. Loan Portfolio and Underwriting Standards - The loan portfolio composition showed business loans at $2.73 billion (25.1$2.31 billion (21.4%) in 2023[186]. - The Bank's underwriting standards for multifamily residential loans require a maximum loan-to-value ratio of 75% and a minimum debt service ratio of 1.20x[315]. - Non-owner-occupied commercial real estate loans also have a maximum loan-to-value ratio of 75% and require a minimum debt service ratio of 1.25x[316]. - The maximum loan-to-value ratio for land acquisition loans is set at 50% of the appraised value of the property[317]. Operational and Compliance Information - The company’s consolidated financial statements are prepared in accordance with U.S. GAAP, ensuring compliance and accuracy in financial reporting[293]. - The Company has established a Credit Risk Management Committee that meets quarterly to review lending exposures and emerging trends[196]. - The Company employs heightened risk management practices, including strategic planning and portfolio management, to address risks associated with its lending activities[194].