Dime Community Bancshares, Inc. Reports Strong Second Quarter Results With Earnings Per Share Increasing by 49% on a Year-over-Year Basis
Continued Growth in Core Deposits and Business Loans on a Year-over-Year Basis
Quarterly Net Interest Margin Improves to 2.98%
HAUPPAUGE, N.Y., July 24, 2025 (GLOBE NEWSWIRE) -- Dime Community Bancshares, Inc. (NASDAQ:DCOM) (the "Company" or "Dime"), the parent company of Dime Community Bank (the "Bank"), today reported net income available to common stockholders of $27.9 million for the quarter ended June 30, 2025, or $0.64 per diluted common share, compared to $19.6 million, or $0.45 per diluted common share, for the quarter ended March 31, 2025 and net income available to common stockholders of $16.7 million for the quarter ended June 30, 2024, or $0.43 per diluted common share.
Stuart H. Lubow, President and Chief Executive Officer ("CEO") of the Company, stated, "As we continue to execute on our growth plan, we were pleased with the solid growth in core deposits, business loans, net interest margin and capital ratios. We had an active second quarter from a recruiting standpoint, which will aid us in the years ahead as we diversify our balance sheet and continue to take market share. Of note, and recognizing the progress we have made in creating a high quality balance sheet, Kroll Bond Rating Agency revised our outlook from "Stable" to "Positive" in the month of June."
Second Quarter Recruiting Update
Hired Shawn Gines as Executive Vice President of Corporate and Specialty Finance; Mr. Gines was previously the Regional President of the New York City and New Jersey metro markets for Webster Bank;
Hired Jason Brenner and Zach Schwartz to lead the newly created Lender Finance vertical; Mr. Brenner and Mr. Schwartz were previously with Axos Bank and First Citizens Bank, respectively;
Hired Michael Watts to lead the newly created Fund Finance vertical; Mr. Watts was previously with East West Bank;
Hired Raffaella Palazzo as Director of Business Banking; Ms. Palazzo was previously Chief Operations Officer at Hanover Bank; and
Hired Solomon Ponniah as Group Leader to grow metro NYC lending presence; Mr. Ponniah was previously Director of Business Banking at Popular Bank.
Geographic Expansion
Received all requisite regulatory approvals to open a branch location at 500 Boulevard of the Americas in Lakewood, New Jersey. The branch opening is planned for early 2026.
Expect to open a new branch location in Manhattan in the fourth quarter of 2025.
Highlights for the Second Quarter of 2025 included:
Total deposits increased $711.7 million on a year-over-year basis;
Core deposits (excluding brokered and time deposits) increased $1.21 billion on a year-over-year basis;
The ratio of average non-interest-bearing deposits to average total deposits for the second quarter was 30%;
Business loans grew $113.3 million on a linked quarter basis and $371.3 million on a year-over-year basis;
The net interest margin increased to 2.98% for the second quarter of 2025 compared to 2.95% for the prior quarter; and
The Company's Common Equity Tier 1 Ratio increased to 11.25% at the end of the second quarter.
Management's Discussion of Quarterly Operating Results
Net Interest Income
Net interest income for the second quarter of 2025 was $98.1 million compared to $94.2 million for the first quarter of 2025 and $75.5 million for the second quarter of 2024.
The table below provides a reconciliation of the reported net interest margin ("NIM") and adjusted NIM excluding the impact of purchase accounting accretion on the loan portfolio.
(Dollars in thousands)
Q2 2025
Q1 2025
Q2 2024
Net interest income
$
98,097
$
94,213
$
75,502
Purchase accounting amortization (accretion) on loans ("PAA")
(225
)
(124
)
(101
)
Adjusted net interest income excluding PAA on loans (non-GAAP)
$
97,872
$
94,089
$
75,401
Average interest-earning assets
$
13,195,116
$
12,963,320
$
12,624,556
NIM(1)
2.98
%
2.95
%
2.41
%
Adjusted NIM excluding PAA on loans (non-GAAP)(2)
2.98
%
2.94
%
2.40
%
(1) NIM represents net interest income divided by average interest-earning assets.(2) Adjusted NIM excluding PAA on loans represents adjusted net interest income, which excludes PAA amortization on acquired loans divided by average interest-earning assets.
Mr. Lubow commented, "Dime has multiple levers to grow NIM over time.
First, we have a significant loan repricing opportunity starting in the second half of 2025 that will continue through 2027, assuming current forecasted interest rate levels remain accurate.
Second, and as demonstrated in the most recent rate cutting cycle, should the Federal Reserve cut short term rates in 2025 we anticipate a reduction in deposit costs, which will drive further NIM expansion.
Finally, core deposit growth and a continued focus on business loan growth will benefit our NIM over time as we continue to grow customers and hire productive teams."
Loan Portfolio
The ending weighted average rate ("WAR") on the total loan portfolio was 5.33% at June 30, 2025, an 8 basis point increase compared to the ending WAR of 5.25% on the total loan portfolio at March 31, 2025.
Outlined below are loan balances and WARs for the quarter ended as indicated.
June 30, 2025
March 31, 2025
June 30, 2024
(Dollars in thousands)
Balance
WAR(1)
Balance
WAR(1)
Balance
WAR(1)
Loans held for investment balances at period end:
Business loans(2)
$
2,902,170
6.65
%
$
2,788,848
6.55
%
$
2,530,896
6.92
%
One-to-four family residential, including condominium and cooperative apartment
998,677
4.85
961,562
4.77
906,949
4.55
Multifamily residential and residential mixed-use(3)(4)
3,693,481
4.48
3,780,078
4.46
3,920,354
4.59
Non-owner-occupied commercial real estate
3,128,453
5.12
3,191,536
5.07
3,315,100
5.25
Acquisition, development, and construction
141,755
8.28
140,309
7.96
144,860
8.96
Other loans
6,336
11.08
6,402
10.39
6,699
3.39
Loans held for investment
$
10,870,872
5.33
%
$
10,868,735
5.25
%
$
10,824,858
5.39
%
(1) WAR is calculated by aggregating interest based on the current loan rate from each loan in the category, adjusted for non-accrual loans, divided by the total balance of loans in the category.(2) Business loans include commercial and industrial loans and owner-occupied commercial real estate loans. (3) Includes loans underlying multifamily cooperatives. (4) While the loans within this category are often considered "commercial real estate" in nature, multifamily and loans underlying cooperatives are reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio.
Outlined below are the loan originations, for the quarter ended as indicated.
(Dollars in millions)
Q2 2025
Q1 2025
Q2 2024
Originations Excluding New Lines of Credit
$
227.3
$
71.5
$
162.4
Originations Including New Lines of Credit
450.5
136.7
284.6
Deposits and Borrowed Funds
Period end total deposits (including mortgage escrow deposits) at June 30, 2025 were $11.74 billion, compared to $11.61 billion at March 31, 2025 and $11.03 billion at June 30, 2024. The Company reduced its brokered deposit levels to $200.0 million at June 30, 2025, compared to $285.6 million at March 31, 2025 and $780.3 million at June 30, 2024.
Total Federal Home Loan Bank advances were $508.0 million at June 30, 2025, compared to $508.0 million at March 31, 2025 and $633.0 million at June 30, 2024.
Non-Interest Income
Non-interest income was $11.6 million during the second quarter of 2025, $9.6 million during the first quarter of 2025, and $11.8 million during the second quarter of 2024.
Non-Interest Expense
Total non-interest expense was $60.3 million during the second quarter of 2025, $65.5 million during the first quarter of 2025, and $55.7 million during the second quarter of 2024. Excluding the impact of the loss on extinguishment of debt, amortization of other intangible assets, severance expense and settlement loss related to the termination of a legacy pension plan, adjusted non-interest expense was $59.9 million during the second quarter of 2025, $58.0 million during the first quarter of 2025, and $55.4 million during the second quarter of 2024 (see "Non-GAAP Reconciliation" tables at the end of this news release).
Mr. Lubow commented, "The increase in non-interest expense on year-over-year-basis has been due to significant investments and hires the Company has made as we execute on our growth plan, which is centered around growing core deposits, diversifying our loan portfolio and selectively adding new geographies. In the second quarter of 2025, we launched various commercial lending verticals that we expect to contribute to loan and revenue growth in the years ahead."
The ratio of non-interest expense to average assets was 1.72% during the second quarter of 2025, compared to 1.90% during the linked quarter and 1.66% during the second quarter of 2024. Excluding the impact of the loss on extinguishment of debt, amortization of other intangible assets, severance expense and settlement loss related to the termination of a legacy pension plan, the ratio of adjusted non-interest expense to average assets was 1.71% during the second quarter of 2025, 1.68% during the first quarter of 2025, and 1.65% during the second quarter of 2024 (see "Non-GAAP Reconciliation" tables at the end of this news release).
The efficiency ratio was 55.0% during the second quarter of 2025, compared to 63.1% during the linked quarter and 63.8% during the second quarter of 2024. Excluding the impact of net gain on sale of securities and other assets, fair value change in equity securities and loans held for sale, severance expense, settlement loss related to the termination of a legacy pension plan, loss on extinguishment of debt and amortization of other intangible assets, the adjusted efficiency ratio was 54.7% during the second quarter of 2025, compared to 55.8% during the linked quarter and 65.9% during the second quarter of 2024 (see "Non-GAAP Reconciliation" tables at the end of this news release).
Income Tax Expense
Income tax expense was $10.5 million during the second quarter of 2025, $7.3 million during the first quarter of 2025, and $7.6 million during the second quarter of 2024. The effective tax rate for the second quarter of 2025 was 26.1%, compared to 25.3% for the first quarter of 2025 and compared to 29.0% for the second quarter of 2024.
Credit Quality
Non-performing loans were $53.2 million at June 30, 2025, compared to $58.0 million at March 31, 2025 and $24.8 million at June 30, 2024.
A credit loss provision of $9.2 million was recorded during the second quarter of 2025, compared to a credit loss provision of $9.6 million during the first quarter of 2025, and a credit loss provision of $5.6 million during the second quarter of 2024.
Capital Management
Stockholders' equity increased $19.0 million to $1.43 billion at June 30, 2025, compared to $1.41 billion at March 31, 2025.
The Company's and the Bank's regulatory capital ratios continued to be in excess of all applicable regulatory requirements as of June 30, 2025. All risk-based regulatory capital ratios increased in the second quarter of 2025.
Dividends per common share were $0.25 during the second quarter of 2025 and the first quarter of 2025, respectively.
Book value per common share was $29.95 at June 30, 2025 compared to $29.58 at March 31, 2025.
Tangible common book value per share (which represents common equity less goodwill and other intangible assets, divided by the number of shares outstanding) was $26.32 at June 30, 2025 compared to $25.94 at March 31, 2025 (see "Non-GAAP Reconciliation" tables at the end of this news release).
Earnings Call Information
The Company will conduct a conference call at 8:30 a.m. (ET) on Thursday, July 24, 2025, during which CEO Lubow will discuss the Company's second quarter 2025 financial performance, with a question-and-answer session to follow.
Participants may access the conference call via webcast using this link: https://edge.media-server.com/mmc/p/7qhzfy2o. To participate via telephone, please register in advance using this link: https://register-conf.media-server.com/register/BIb23e2d2040014fbe89e85e3654130c71. Upon registration, all telephone participants will receive a one-time confirmation email detailing how to join the conference call, including the dial-in number along with a unique PIN that can be used to access the call. All participants are encouraged to dial-in 10 minutes prior to the start time.
A replay of the conference call and webcast will be available on-demand for 12 months at https://edge.media-server.com/mmc/p/7qhzfy2o.
ABOUT DIME COMMUNITY BANCSHARES, INC.Dime Community Bancshares, Inc. is the holding company for Dime Community Bank, a New York State-chartered trust company with over $14 billion in assets and the number one deposit market share among community banks on Greater Long Island. (1)
(1) Aggregate deposit market share for Kings, Queens, Nassau & Suffolk counties for community banks with less than $20 billion in assets.
This news release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements may be identified by use of words such as "annualized," "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "likely," "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar terms and phrases, including references to assumptions.
Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management's experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company's control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Accordingly, you should not place undue reliance on such statements. Factors that could affect our results include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company's control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may affect demand for our products and reduce interest margins and the value of our investments; changes in government monetary or fiscal policies and actions may adversely affect our customers, cost of credit and overall result of operations; changes in deposit flows, the cost of funds, loan demand or real estate values may adversely affect the business of the Company; changes in the quality and composition of the Company's loan or investment portfolios or unanticipated or significant increases in loan losses may negatively affect the Company's financial condition or results of operations; changes in accounting principles, policies or guidelines may cause the Company's financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company's financial condition or results of operations; general socio-economic conditions, public health emergencies, international conflict, inflation, tariffs, and recessionary pressures, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates and may adversely affect our customers, our financial results and our operations; legislation or regulatory changes may adversely affect the Company's business; technological changes may be more difficult or expensive than the Company anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; there may be difficulties or unanticipated expense incurred in the consummation of new business initiatives or the integration of any acquired entities; and litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections entitled "Forward-Looking Statements" and "Risk Factors" in the Company's most recent Annual Report on Form 10-K and updates set forth in the Company's subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Contact: Avinash Reddy
Senior Executive Vice President, Chief Financial Officer
718-782-6200 extension 5909
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIESUNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION(In thousands)
June 30,
March 31,
December 31,
2025
2025
2024
Assets:
Cash and due from banks
$
1,156,754
$
1,030,702
$
1,283,571
Securities available-for-sale, at fair value
703,461
710,579
690,693
Securities held-to-maturity
625,188
631,334
637,339
Loans held for sale
13,617
2,527
22,625
Loans held for investment, net:
Business loans(1)
2,902,170
2,788,848
2,726,602
One-to-four family and cooperative/condominium apartment
998,677
961,562
952,195
Multifamily residential and residential mixed-use(2)(3)
3,693,481
3,780,078
3,820,492
Non-owner-occupied commercial real estate
3,128,453
3,191,536
3,231,398
Acquisition, development and construction
141,755
140,309
136,172
Other loans
6,336
6,402
5,084
Allowance for credit losses
(93,189
)
(90,455
)
(88,751
)
Total loans held for investment, net
10,777,683
10,778,280
10,783,192
Premises and fixed assets, net
33,957
33,650
34,858
Restricted stock
67,110
66,987
69,106
BOLI
393,345
389,167
290,665
Goodwill
155,797
155,797
155,797
Other intangible assets
3,409
3,644
3,896
Operating lease assets
44,717
45,657
46,193
Derivative assets
90,966
98,740
116,496
Accrued interest receivable
55,418
56,044
55,970
Other assets
86,513
94,574
162,857
Total assets
$
14,207,935
$
14,097,682
$
14,353,258
Liabilities:
Non-interest-bearing checking (excluding mortgage escrow deposits)
$
3,432,667
$
3,245,409
$
3,355,829
Interest-bearing checking
1,029,297
950,090
1,079,823
Savings (excluding mortgage escrow deposits)
1,923,277
1,939,852
1,927,903
Money market
4,229,503
4,271,363
4,198,784
Certificates of deposit
1,080,093
1,121,068
1,069,081
Deposits (excluding mortgage escrow deposits)
11,694,837
11,527,782
11,631,420
Non-interest-bearing mortgage escrow deposits
45,256
88,138
54,715
Interest-bearing mortgage escrow deposits
2
4
6
Total mortgage escrow deposits
45,258
88,142
54,721
FHLBNY advances
508,000
508,000
608,000
Other short-term borrowings
—
—
50,000
Subordinated debt, net
272,414
272,370
272,325
Derivative cash collateral
69,840
85,230
112,420
Operating lease liabilities
47,559
48,432
48,993
Derivative liabilities
86,110
92,516
108,347
Other liabilities
52,911
63,197
70,515
Total liabilities
12,776,929
12,685,669
12,956,741
Stockholders' equity:
Preferred stock, Series A
116,569
116,569
116,569
Common stock
461
461
461
Additional paid-in capital
622,660
623,305
624,822
Retained earnings
820,221
803,202
794,526
Accumulated other comprehensive loss ("AOCI"), net of deferred taxes
(37,937
)
(39,045
)
(45,018
)
Unearned equity awards
(13,525
)
(12,909
)
(7,640
)
Treasury stock, at cost
(77,443
)
(79,570
)
(87,203
)
Total stockholders' equity
1,431,006
1,412,013
1,396,517
Total liabilities and stockholders' equity
$
14,207,935
$
14,097,682
$
14,353,258
(1) Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and Paycheck Protection Program ("PPP") loans.(2) Includes loans underlying multifamily cooperatives.
(3) While the loans within this category are often considered "commercial real estate" in nature, multifamily and loans underlying cooperatives are here reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio.
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIESUNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS(Dollars in thousands except share and per share amounts)
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
June 30,
2025
2025
2024
2025
2024
Interest income:
Loans
$
145,448
$
142,705
$
147,099
$
288,153
$
290,664
Securities
11,353
11,323
7,907
22,676
15,787
Other short-term investments
10,749
7,837
4,412
18,586
13,976
Total interest income
167,550
161,865
159,418
329,415
320,427
Interest expense:
Deposits and escrow
60,181
58,074
72,878
118,255
145,947
Borrowed funds
8,354
8,381
9,033
16,735
23,730
Derivative cash collateral
918
1,197
2,005
2,115
3,718
Total interest expense
69,453
67,652
83,916
137,105
173,395
Net interest income
98,097
94,213
75,502
192,310
147,032
Provision for credit losses
9,221
9,626
5,585
18,847
10,795
Net interest income after provision
88,876
84,587
69,917
173,463
136,237
Non-interest income:
