Dime(US:DCOM)2023-10-19 16:40Financial Data and Key Metrics Changes - Core EPS for the third quarter was $0.56 per share, with stable asset quality and prudent non-interest expense management [5][62] - Risk-based capital ratios increased by approximately 25 basis points, and non-performing assets were reduced by 16% [2][106] - Non-interest income for the third quarter was $7.9 million, reflecting a decline due to lower swap revenue [45] Business Line Data and Key Metrics Changes - Core deposits grew by approximately $200 million on a spot basis, with non-interest-bearing deposits increasing for the first time since the current rate tightening cycle began [5][41] - The loan pipeline is approximately $985 million, with a weighted average rate of 7.9%, and 60% of the pipeline is in business loans [17][64] - The company has a strong focus on owner-occupied and commercial & industrial (C&I) loans, with expectations of a pickup in C&I business [20][64] Market Data and Key Metrics Changes - The company’s Manhattan investor office portfolio is only $200 million, representing less than 1.5% of total assets, with a low loan-to-value (LTV) ratio of 50% [63] - The non-interest-bearing deposit percentage stands at 29% of average total deposits, which is a differentiator compared to other community banks [43] Company Strategy and Development Direction - The company aims to manage expenses prudently while focusing on efficiency and growth in business loans [3][16] - The addition of a healthcare vertical aligns with the strategy of expanding business loans [64] - The company is actively recruiting high-caliber bankers to enhance its service offerings and client relationships [15][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging revenue environment but remains confident in outperforming during potential recessionary conditions due to a strong multi-family portfolio [2][4] - The company expects net interest margin (NIM) to stabilize by the end of the year and sees potential for expansion in 2024 [66] - Management is focused on building capital methodically to support clients and navigate the current economic landscape [46][58] Other Important Information - The company has no delinquencies greater than 60 days in its investor office portfolio, indicating strong asset quality [35][40] - The company has outsourced its data center to save on personnel costs and improve efficiency [101] Q&A Session Summary Question: What are the expectations for deposit growth moving into the fourth quarter? - Management noted that the decline in non-interest-bearing deposits has stabilized, and they expect overall deposits to remain stable to up moving forward [48] Question: Can you provide an update on expenses and guidance for the fourth quarter? - Management indicated they are running below previous expense guidance and are focused on keeping expenses low while exploring opportunities for new hires [49][71] Question: What is the current state of loan yields and expectations for the future? - Management expects loan yields to gradually increase as the environment stabilizes, with a focus on business loans driving growth [51][53] Question: How is the company managing its loan-to-deposit ratio? - The loan-to-deposit ratio has decreased to 102%, and management aims to bring it down to 100% as deposits continue to grow [90] Question: What progress has been made on technology rollouts for new business-focused accounts? - The company has successfully rolled out online banking and digital account opening processes, enhancing its digital capabilities [91]