Dime Community Bancshares, Inc. Reports First Quarter 2025 EPS of $0.45; Adjusted EPS of $0.57
Continued Growth in Core Deposits and Business Loans On a Year-over-Year Basis
Net Interest Margin Expands by 16 basis points on a Linked Quarter Basis to 2.95%
HAUPPAUGE, N.Y., April 22, 2025 (GLOBE NEWSWIRE) -- Dime Community Bancshares, Inc. $(DCOM)$ (the "Company" or "Dime"), the parent company of Dime Community Bank (the "Bank"), today reported net income available to common stockholders of $19.6 million for the quarter ended March 31, 2025, or $0.45 per diluted common share, compared to net loss available to common stockholders of $22.2 million, or $(0.54) per diluted common share, for the quarter ended December 31, 2024 and net income available to common stockholders of $15.9 million for the quarter ended March 31, 2024, or $0.41 per diluted common share.
First quarter 2025 results included $7.2 million of pre-tax expenses related to the final settlements associated with the termination of the legacy Bridgehampton National Bank pension plan.
Adjusted net income available to common stockholders (non-GAAP) totaled $24.7 million for the quarter ended March 31, 2025, an increase of 42% versus the prior quarter and an increase of 67% versus the quarter ended March 31, 2024 (see "Non-GAAP Reconciliation" tables at the end of this news release). Adjusted EPS (non-GAAP) totaled $0.57 per share for the quarter ended March 31, 2025, an increase of 36% versus the prior quarter and an increase of 50% versus the quarter ended March 31, 2024.
Stuart H. Lubow, President and Chief Executive Officer ("CEO") of the Company, stated, "Our first quarter results were marked by strong Net Interest Margin ("NIM") expansion and continued progress in diversifying our balance sheet. Our enhanced earnings power and robust capital ratios position us well for future growth. As outlined below we have made a strong start to the year from a recruiting standpoint, and are poised to continue to add talented individuals and gain market share in the quarters ahead."
Year-to-date Recruiting Update
-- Hired Tom Geisel to Senior Executive Leadership Team. Mr. Geisel was
instrumental in the growth and transformation of Sterling National Bank
into a highly profitable $30 billion institution;
-- Hired Robert Rowe as incoming Chief Credit Officer (experience includes
Chief Credit Officer at Sterling National Bank and Chief Risk Officer at
CIT); incumbent Chief Credit Officer Brian Teplitz to retire at the end
of May 2025;
-- Hired Jim LoGatto as an Executive Vice President to build Dime's presence
in Manhattan; Mr. LoGatto was previously the Director of US Private
Banking at Israel Discount Bank of New York;
-- Hired Toni Badolato as Group Leader to grow lending presence on Long
Island; Ms. Badolato was previously with M&T;
-- Hired George Taitt as Group Director and Amy Grandy as Associate Group
Director to strengthen deposit presence in Queens; the Group was
previously with the former Signature Bank and its successor, Flagstar
Bank.
Highlights for the First Quarter of 2025 included:
-- Total deposits increased $717.0 million on a year-over-year basis;
-- Core deposits (excluding brokered and time deposits) increased $1.35
billion on a year-over-year basis;
-- The ratio of average non-interest-bearing deposits to average total
deposits for the first quarter was 29.5%;
-- The cost of total deposits declined by 19 basis points versus the prior
quarter;
-- The net interest margin increased to 2.95% for the first quarter of 2025
compared to 2.79% for the prior quarter;
-- The Company's Common Equity Tier 1 Ratio increased to 11.12% at the end
of the first quarter.
Management's Discussion of Quarterly Operating Results
Net Interest Income
Net interest income for the first quarter of 2025 was $94.2 million compared to $91.1 million for the fourth quarter of 2024 and $71.5 million for the first 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) Q1 2025 Q4 2024 Q1 2024
----------------------- ------------ ------------ ------------
Net interest income $ 94,213 $ 91,098 $ 71,530
Purchase accounting
amortization
(accretion) on loans
("PAA") (124) (1,268) (82)
---------- ---------- ----------
Adjusted net interest
income excluding PAA on
loans (non-GAAP) $ 94,089 $ 89,830 $ 71,448
---------- ---------- ----------
Average interest-earning
assets $12,963,320 $12,974,958 $13,015,755
NIM(1) 2.95 % 2.79 % 2.21 %
Adjusted NIM excluding
PAA on loans
(non-GAAP)(2) 2.94 % 2.75 % 2.21 %
(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, "While there has been a fair bit of volatility in the macroeconomic environment in recent weeks, Dime has multiple levers to grow our 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 5.25% at March 31, 2025, a 1 basis point decrease compared to the ending WAR of 5.26% on the total loan portfolio at December 31, 2024.
Outlined below are loan balances and WARs for the quarter ended as indicated.
March 31, 2025 December 31, 2024 March 31, 2024
------------------- ------------------- -------------------
(Dollars in thousands) Balance WAR(1) Balance WAR(1) Balance WAR(1)
----------------------- ----------- ------ ----------- ------ ----------- ------
Loans held for
investment balances at
period end:
Business loans(2) $ 2,788,848 6.55% $ 2,726,602 6.56% $ 2,327,403 6.90%
One-to-four family
residential,
including condominium
and cooperative
apartment 961,562 4.77 952,195 4.72 873,671 4.48
Multifamily
residential and
residential
mixed-use(3)(4) 3,780,078 4.46 3,820,492 4.49 3,996,654 4.57
Non-owner-occupied
commercial real
estate 3,191,536 5.07 3,231,398 5.13 3,386,333 5.24
Acquisition,
development, and
construction 140,309 7.96 136,172 7.95 175,352 8.40
Other loans 6,402 10.39 5,084 10.51 5,170 7.10
---------- ------ ---------- ------ ---------- ------
Loans held for
investment $10,868,735 5.25% $10,871,943 5.26% $10,764,583 5.34%
========== ====== ========== ====== ========== ======
(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) Q1 2025 Q4 2024 Q1 2024 ---------------------- --------- --------- --------- Loan originations $ 71.5 $ 187.5 $ 98.3
Deposits and Borrowed Funds
Period end total deposits (including mortgage escrow deposits) at March 31, 2025 were $11.61 billion, compared to $11.69 billion at December 31, 2024 and $10.90 billion at March 31, 2024. The Company reduced its brokered deposit levels to $285.6 million at March 31, 2025, compared to $422.8 million at December 31, 2024 and $897.1 million at March 31, 2024.
Total Federal Home Loan Bank advances were $508.0 million at March 31, 2025 compared to $608.0 million at December 31, 2024 and $773.0 million at March 31, 2024.
Non-Interest Income
Non-interest income was $9.6 million during the first quarter of 2025, compared to a loss of $33.9 million during the fourth quarter of 2024, and income of $10.5 million during the first quarter of 2024. Fourth quarter 2024 results included $42.8 million of pre-tax loss-on-sale of securities related to the re-positioning of the available-for-sale securities portfolio.
Non-Interest Expense
Total non-interest expense was $65.5 million during the first quarter of 2025, $60.6 million during the fourth quarter of 2024, and $52.5 million during the first quarter of 2024. Excluding the impact of the loss on extinguishment of debt, amortization of other intangible assets, severance expense, settlement loss related to the termination of a legacy pension plan, and the FDIC special assessment, adjusted non-interest expense was $58.0 million during the first quarter of 2025, $57.7 million during the fourth quarter of 2024, and $51.7 million during the first quarter of 2024 (see "Non-GAAP Reconciliation" tables at the end of this news release).
Mr. Lubow commented, "Excluding the impact of the legacy Bridgehampton National Bank pension plan termination, first quarter expenses were well-controlled and in-line with our previous expectations."
The ratio of non-interest expense to average assets was 1.90% during the first quarter of 2025, compared to 1.76% during the linked quarter and 1.52% during the first quarter of 2024. Excluding the impact of the loss on extinguishment of debt, amortization of other intangible assets, severance expense, the FDIC special assessment and settlement loss related to the termination of a legacy pension plan, the ratio of adjusted non-interest expense to average assets was 1.68% during the first quarter of 2025, 1.68% during the fourth quarter of 2024, and 1.50% during the first quarter of 2024 (see "Non-GAAP Reconciliation" tables at the end of this news release).
The efficiency ratio was 63.1% during the first quarter of 2025, compared to 105.9% during the linked quarter and 64.0% during the first quarter of 2024. Excluding the impact of net (gain) loss on sale of securities and other assets, fair value change in equity securities and loans held for sale, severance expense, the FDIC special assessment, 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 55.8% during the fourth quarter of 2024, compared to 58.0% during the linked quarter and 64.7% during the first quarter of 2024 (see "Non-GAAP Reconciliation" tables at the end of this news release).
Income Tax Expense
Income tax expense was $7.3 million during the first quarter of 2025, $3.3 million during the fourth quarter of 2024, and $6.6 million during the first quarter of 2024. The fourth quarter of 2024 income tax expense was inclusive of $9.1 million of income tax expense related to the taxable gain and Modified Endowment Contract Tax ("MEC") Tax on the surrender of legacy BOLI assets. The effective tax rate for the first quarter of 2025 was 25.3%. Excluding the tax impact of the BOLI surrender, the fourth quarter 2024 effective rate was a tax benefit of 33.5%. The effective tax rate for the first quarter of 2024 was 27.1%.
Credit Quality
Non-performing loans were $58.0 million at March 31, 2025, compared to $49.5 million at December 31, 2024 and $34.8 million at March 31, 2024.
A credit loss provision of $9.6 million was recorded during the first quarter of 2025, compared to a credit loss provision of $13.7 million during the fourth quarter of 2024, and a credit loss provision of $5.2 million during the first quarter of 2024.
Capital Management
Stockholders' equity increased $15.5 million to $1.41 billion at March 31, 2025, compared to $1.40 billion at December 31, 2024.
The Company's and the Bank's regulatory capital ratios continued to be in excess of all applicable regulatory requirements as of December 31, 2024. All risk-based regulatory capital ratios increased in the first quarter of 2025.
Dividends per common share were $0.25 during the first quarter of 2025 and the fourth quarter of 2024, respectively.
Book value per common share was $29.58 at March 31, 2025 compared to $29.34 at December 31, 2024.
Tangible common book value per share (which represents common equity less goodwill and other intangible assets, divided by the number of shares outstanding) was $25.94 at March 31, 2025 compared to $25.68 at December 31, 2024 (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 Tuesday, April 22, 2025, during which CEO Lubow will discuss the Company's first 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/cbadbvnq. To participate via telephone, please register in advance using this link: https://register-conf.media-server.com/register/BIafdc630ea47c427ea6661eb613e46913. 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/cbadbvnq.
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, 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 SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands)
March 31, December 31, March 31,
2025 2024 2024
----------- ----------- -----------
Assets:
Cash and due from banks $ 1,030,702 $ 1,283,571 $ 370,852
Securities
available-for-sale, at
fair value 710,579 690,693 859,216
Securities
held-to-maturity 631,334 637,339 589,331
Loans held for sale 2,527 22,625 8,973
Loans held for
investment, net:
Business loans(1) 2,788,848 2,726,602 2,327,403
One-to-four family and
cooperative/condominium
apartment 961,562 952,195 873,671
Multifamily residential
and residential
mixed-use(2)(3) 3,780,078 3,820,492 3,996,654
Non-owner-occupied
commercial real estate 3,191,536 3,231,398 3,386,333
Acquisition, development
and construction 140,309 136,172 175,352
Other loans 6,402 5,084 5,170
Allowance for credit
losses (90,455) (88,751) (76,068)
---------- ---------- ----------
Total loans held for
investment, net 10,778,280 10,783,192 10,688,515
---------- ---------- ----------
Premises and fixed
assets, net 33,650 34,858 44,501
Restricted stock 66,987 69,106 74,346
BOLI 389,167 290,665 352,277
Goodwill 155,797 155,797 155,797
Other intangible assets 3,644 3,896 4,753
Operating lease assets 45,657 46,193 51,988
Derivative assets 98,740 116,496 135,162
Accrued interest
receivable 56,044 55,970 55,369
Other assets 94,574 162,857 110,012
---------- ---------- ----------
Total assets $14,097,682 $14,353,258 $13,501,092
========== ========== ==========
Liabilities:
Non-interest-bearing
checking (excluding
mortgage escrow
deposits) $ 3,245,409 $ 3,355,829 $ 2,819,481
Interest-bearing checking 950,090 1,079,823 635,640
Savings (excluding
mortgage escrow
deposits) 1,939,852 1,927,903 2,347,114
Money market 4,271,363 4,198,784 3,440,083
Certificates of deposit 1,121,068 1,069,081 1,555,157
---------- ---------- ----------
Deposits (excluding
mortgage escrow
deposits) 11,527,782 11,631,420 10,797,475
---------- ---------- ----------
Non-interest-bearing
mortgage escrow
deposits 88,138 54,715 101,229
Interest-bearing mortgage
escrow deposits 4 6 173
---------- ---------- ----------
Total mortgage escrow
deposits 88,142 54,721 101,402
---------- ---------- ----------
FHLBNY advances 508,000 608,000 773,000
Other short-term
borrowings -- 50,000 --
Subordinated debt, net 272,370 272,325 200,174
Derivative cash
collateral 85,230 112,420 132,900
Operating lease
liabilities 48,432 48,993 54,727
Derivative liabilities 92,516 108,347 122,112
Other liabilities 63,197 70,515 79,931
---------- ---------- ----------
Total liabilities 12,685,669 12,956,741 12,261,721
---------- ---------- ----------
Stockholders' equity:
Preferred stock, Series A 116,569 116,569 116,569
Common stock 461 461 416
Additional paid-in
capital 623,305 624,822 492,834
Retained earnings 803,202 794,526 819,130
Accumulated other
comprehensive loss
("AOCI"), net of
deferred taxes (39,045) (45,018) (85,466)
Unearned equity awards (12,909) (7,640) (10,191)
Treasury stock, at cost (79,570) (87,203) (93,921)
---------- ---------- ----------
Total stockholders'
equity 1,412,013 1,396,517 1,239,371
---------- ---------- ----------
Total liabilities and
stockholders' equity $14,097,682 $14,353,258 $13,501,092
========== ========== ==========
(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 SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands except share and per share amounts)
Three Months Ended
-----------------------------------------
March 31, December 31, March 31,
2025 2024 2024
----------- ----------- -----------
Interest income:
Loans $ 142,705 $ 148,000 $ 143,565
Securities 11,323 10,010 7,880
Other short-term
investments 7,837 7,473 9,564
---------- ---------- ----------
Total interest
income 161,865 165,483 161,009
---------- ---------- ----------
Interest expense:
Deposits and escrow 58,074 64,773 73,069
Borrowed funds 8,381 8,542 14,697
Derivative cash
collateral 1,197 1,070 1,713
---------- ---------- ----------
Total interest
expense 67,652 74,385 89,479
---------- ---------- ----------
Net interest
income 94,213 91,098 71,530
Provision for credit
losses 9,626 13,715 5,210
---------- ---------- ----------
Net interest income
after provision 84,587 77,383 66,320
---------- ---------- ----------
Non-interest income:
Service charges and
other fees 4,643 3,942 4,544
Title fees 98 226 133
Loan level
derivative income 61 491 406
BOLI income 3,993 2,825 2,461
Gain on sale of
Small Business
Administration
("SBA") loans 82 22 253
Gain on sale of
residential loans 32 83 77
Fair value change
in equity
securities and
loans held for
sale 18 15 (842)
Net loss on sale of
securities -- (42,810) --
Gain on sale of
other assets -- 554 2,968
Other 706 791 467
---------- ---------- ----------
Total non-interest
income (loss) 9,633 (33,861) 10,467
---------- ---------- ----------
Non-interest
expense:
Salaries and
employee benefits 35,651 35,761 32,037
Severance 76 1,254 42
Occupancy and
equipment 8,002 7,569 7,368
Data processing
costs 4,794 4,483 4,313
Marketing 1,666 1,897 1,497
Professional
services 2,116 2,345 1,467
Federal deposit
insurance
premiums(1) 2,047 2,116 2,239
Loss on
extinguishment of
debt -- -- 453
Loss due to pension
settlement 7,231 1,215 --
Amortization of
other intangible
assets 252 285 307
Other 3,676 3,688 2,788
---------- ---------- ----------
Total non-interest
expense 65,511 60,613 52,511
---------- ---------- ----------
Income (loss)
before taxes 28,709 (17,091) 24,276
Income tax expense(2) 7,251 3,322 6,585
---------- ---------- ----------
Net income (loss) 21,458 (20,413) 17,691
Preferred stock
dividends 1,822 1,821 1,821
---------- ---------- ----------
Net income (loss)
available to common
stockholders $ 19,636 $ (22,234) $ 15,870
========== ========== ==========
Earnings (loss) per
common share
("EPS"):
Basic $ 0.45 $ (0.54) $ 0.41
========== ========== ==========
Diluted $ 0.45 $ (0.54) $ 0.41
========== ========== ==========
Average common shares
outstanding for
diluted EPS 42,948,690 40,767,161 38,255,559
(1) Fourth quarter of 2024 included $0.1 million of pre-tax expense related to the FDIC special assessment for the recovery of losses related to the closures of Silicon Valley Bank and Signature Bank.
((2) () Fourth quarter of 2024 includes $9.1 million of income tax expense related to the taxable gain and MEC Tax on the surrender of legacy BOLI assets.
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SELECTED FINANCIAL HIGHLIGHTS
(Dollars in thousands except per share amounts)
At or For the Three Months Ended
----------------------------------------------
March 31, December 31, March 31,
2025 2024 2024
----------- ----------- -----------
Per Share Data:
---------------------
Reported EPS (Diluted) $ 0.45 $ (0.54) $ 0.41
Cash dividends paid
per common share 0.25 0.25 0.25
Book value per common
share 29.58 29.34 28.84
Tangible common book
value per share(1) 25.94 25.68 24.72
Common shares
outstanding 43,799 43,622 38,932
Dividend payout ratio 55.56% (46.30) % 60.98%
Performance Ratios
(Based upon Reported
Net Income):
---------------------
Return on average
assets 0.62% (0.59) % 0.51%
Return on average
equity 6.04 (6.02) 5.68
Return on average
tangible common
equity(1) 6.92 (8.16) 6.64
Net interest margin 2.95 2.79 2.21
Non-interest expense
to average assets 1.90 1.76 1.52
Efficiency ratio 63.1 105.9 64.0
Effective tax rate 25.26 (19.44) 27.13
Balance Sheet Data:
---------------------
Average assets $13,777,665 $13,759,002 $13,794,924
Average
interest-earning
assets 12,963,320 12,974,958 13,015,755
Average tangible
common equity(1) 1,145,915 1,080,177 968,719
Loan-to-deposit ratio
at end of period(2) 93.6 93.0 98.8
Capital Ratios and
Reserves -
Consolidated:(3)
---------------------
Tangible common equity
to tangible
assets(1) 8.15% 7.89 % 7.21%
Tangible equity to
tangible assets(1) 8.99 8.71 8.09
Tier 1 common equity
ratio 11.12 11.06 10.00
Tier 1 risk-based
capital ratio 12.23 12.17 11.11
Total risk-based
capital ratio 15.71 15.65 13.78
Tier 1 leverage ratio 9.46 9.38 8.48
Consolidated CRE
concentration
ratio(4) 442 447 534
Allowance for credit
losses/ Total loans 0.83 0.82 0.71
Allowance for credit
losses/
Non-performing loans 155.85 179.37 218.42
(1) See "Non-GAAP Reconciliation" tables for reconciliation of tangible equity, tangible common equity, and tangible assets.
((2) () Total deposits include mortgage escrow deposits, which fluctuate seasonally.
(3) March 31, 2025 ratios are preliminary pending completion and filing of the Company's regulatory reports.
((4) () The Consolidated CRE concentration ratio is calculated using the sum of commercial real estate, excluding owner-occupied commercial real estate, multifamily, and acquisition, development, and construction, divided by consolidated capital. The March 31, 2025 ratio is preliminary pending completion and filing of the Company's regulatory reports.
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME
(Dollars in thousands)
Three Months Ended
------------------------------------------------------------------------------------------------------
March 31, 2025 December 31, 2024 March 31, 2024
------------------------------ ------------------------------ ------------------------------
Average Average Average
Average Yield/ Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost Balance Interest Cost
----------- -------- ------- ----------- -------- ------- ----------- -------- -------
Assets:
Interest-earning assets:
Business loans(1) $ 2,748,142 $ 45,047 6.65% $ 2,681,953 $ 46,791 6.94% $ 2,308,319 $ 39,224 6.83%
One-to-four family residential,
including condo and coop 962,046 11,069 4.67 943,319 11,061 4.66 886,588 9,770 4.43
Multifamily residential and
residential mixed-use 3,796,754 42,329 4.52 3,848,579 44,152 4.56 4,000,510 46,019 4.63
Non-owner-occupied commercial
real estate 3,214,758 41,326 5.21 3,265,906 42,865 5.22 3,371,438 44,776 5.34
Acquisition, development, and
construction 138,428 2,906 8.51 139,440 3,101 8.85 169,775 3,692 8.75
Other loans 5,740 28 1.98 4,781 30 2.50 5,420 84 6.23
Securities 1,372,563 11,323 3.35 1,455,449 10,010 2.74 1,578,330 7,880 2.01
Other short-term investments 724,889 7,837 4.38 635,531 7,473 4.68 695,375 9,564 5.53
---------- ------- ---------- ------- ---------- -------
Total interest-earning assets 12,963,320 161,865 5.06% 12,974,958 165,483 5.07% 13,015,755 161,009 4.98%
---------- ------- ---------- ------- ---------- -------
Non-interest-earning assets 814,345 784,044 779,169
---------- ---------- ----------
Total assets $13,777,665 $13,759,002 $13,794,924
========== ========== ==========
Liabilities and Stockholders'
Equity:
Interest-bearing liabilities:
Interest-bearing checking(2) $ 912,852 $ 4,164 1.85% $ 912,645 $ 5,115 2.23% $ 582,047 $ 1,223 0.85%
Money market 4,076,612 31,294 3.11 3,968,793 33,695 3.38 3,359,884 30,638 3.67
Savings(2) 1,970,338 14,185 2.92 1,905,866 14,828 3.10 2,368,946 22,810 3.87
Certificates of deposit 973,108 8,431 3.51 1,126,859 11,135 3.93 1,655,882 18,398 4.47
---------- ------- ---------- ------- ---------- -------
Total interest-bearing deposits 7,932,910 58,074 2.97 7,914,163 64,773 3.26 7,966,759 73,069 3.69
FHLBNY advances 509,111 4,066 3.24 509,630 4,241 3.31 1,094,209 12,143 4.46
Subordinated debt, net 272,341 4,302 6.41 272,311 4,301 6.28 200,188 2,553 5.13
Other short-term borrowings 633 13 8.33 543 -- -- 77 1 5.22
---------- ------- ---------- ------- ---------- -------
Total borrowings 782,085 8,381 4.35 782,484 8,542 4.34 1,294,474 14,697 4.57
---------- ------- ---------- ------- ---------- -------
Derivative cash collateral 104,126 1,197 4.66 99,560 1,070 4.28 130,166 1,713 5.29
---------- ------- ---------- ------- ---------- -------
Total interest-bearing
liabilities 8,819,121 67,652 3.11% 8,796,207 74,385 3.36% 9,391,399 89,479 3.83%
---------- ------- ---------- ------- ---------- -------
Non-interest-bearing checking(2) 3,322,583 3,396,457 2,909,776
Other non-interest-bearing
liabilities 213,876 209,712 247,717
---------- ---------- ----------
Total liabilities 12,355,580 12,402,376 12,548,892
Stockholders' equity 1,422,085 1,356,626 1,246,032
---------- ---------- ----------
Total liabilities and
stockholders' equity $13,777,665 $13,759,002 $13,794,924
========== ========== ==========
Net interest income $ 94,213 $ 91,098 $ 71,530
======= ======= =======
Net interest rate spread 1.95% 1.71% 1.15%
Net interest margin 2.95% 2.79% 2.21%
Deposits (including
non-interest-bearing checking
accounts)(2) $11,255,493 $ 58,074 2.09% $11,310,620 $ 64,773 2.28% $10,876,535 $ 73,069 2.70%
========== ======= ========== ======= ========== =======
(1) Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and PPP loans.
((2) () Includes mortgage escrow deposits.
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS
(Dollars in thousands)
At or For the Three Months Ended
----------------------------------------------
March 31, December 31, March 31,
Asset Quality Detail 2025 2024 2024
--------------------- ----------- ----------- --------
Non-performing loans
("NPLs")
Business loans(1) $ 21,944 $ 22,624 $ 18,213
One-to-four family
residential,
including
condominium and
cooperative
apartment 3,763 3,213 3,689
Multifamily
residential and
residential
mixed-use -- -- --
Non-owner-occupied
commercial real
estate 31,677 22,960 15
Acquisition,
development, and
construction 657 657 12,910
Other loans -- 25 --
------- ------- -------
Total Non-accrual
loans $ 58,041 $ 49,479 $ 34,827
======= ======= =======
Total Non-performing
assets ("NPAs") $ 58,041 $ 49,479 $ 34,827
======= ======= =======
Total loans 90 days
delinquent and
accruing ("90+
Delinquent") $ -- $ -- $ --
------- ------- -------
NPAs and 90+
Delinquent $ 58,041 $ 49,479 $ 34,827
======= ======= =======
NPAs and 90+
Delinquent / Total
assets 0.41% 0.34% 0.26%
Net charge-offs
("NCOs") $ 7,058 $ 10,611 $ 739
NCOs / Average
loans(2) 0.26% 0.39% 0.03%
(1) Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and PPP loans.
((2) () Calculated based on annualized NCOs to average loans, excluding loans held for sale.
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATION
(Dollars in thousands except per share amounts)
The following tables below provide a reconciliation of certain financial measures calculated under generally accepted accounting principles ("GAAP") (as reported) and non-GAAP measures. A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with GAAP in the United States. The Company's management believes the presentation of non-GAAP financial measures provides investors with a greater understanding of the Company's operating results in addition to the results measured in accordance with GAAP. While management uses these non-GAAP measures in its analysis of the Company's performance, this information should not be viewed as a substitute for financial results determined in accordance with GAAP or considered to be more important than financial results determined in accordance with GAAP.
The following non-GAAP financial measures exclude pre-tax income and expenses associated with the fair value change in equity securities and loans held for sale, net loss (gain) on sale of securities and other assets, severance, the FDIC special assessment, loss on extinguishment of debt and loss due to pension settlement. The non-GAAP financial measures also include taxes related to the surrender of BOLI assets.
Three Months Ended
-------------------------------------
March December March
31, 31, 31,
2025 2024 2024
------- -------- -------
Reconciliation of
Reported and Adjusted
(non-GAAP) Net Income
(Loss) Available to
Common Stockholders
---------------------
Reported net income
(loss) available to
common stockholders $19,636 $(22,234) $15,870
Adjustments to net
income(1):
Fair value change in
equity securities and
loans held for sale (18) (15) 842
Net loss (gain) on
sale of securities
and other assets -- 42,256 (2,968)
Severance 76 1,254 42
FDIC special
assessment -- 126 --
Loss on extinguishment
of debt -- -- 453
Loss due to pension
settlement 7,231 1,215 --
Income tax effect of
adjustments noted
above(1) (2,237) (14,258) 518
BOLI tax
adjustment(2): -- 9,073 --
------ ------- ------
Adjusted net income
available to common
stockholders
(non-GAAP) $24,688 $ 17,417 $14,757
====== ======= ======
Adjusted Ratios
(Based upon Adjusted
(non-GAAP) Net (Loss)
Income as calculated
above)
---------------------
Adjusted EPS (Diluted) $ 0.57 $ 0.42 $ 0.38
Adjusted return on
average assets 0.77 % 0.56 % 0.48 %
Adjusted return on
average equity 7.46 5.67 5.32
Adjusted return on
average tangible
common equity 8.68 6.52 6.18
Adjusted non-interest
expense to average
assets 1.68 1.68 1.50
Adjusted efficiency
ratio 55.8 58.0 64.7
(1) Adjustments to net (loss) income are taxed at the Company's approximate statutory tax rate.
((2) () Reflects income tax expense related to the taxable gain and MEC Tax on the surrender of legacy BOLI assets during the three months ended December 31, 2024.
The following table presents a reconciliation of operating expense as a percentage of average assets (as reported) and adjusted operating expense as a percentage of average assets (non-GAAP):
Three Months Ended
--------------------------------------------
March 31, December 31, March 31,
2025 2024 2024
Operating
expense as a %
of average
assets - as
reported 1.90 % 1.76 % 1.52 %
Severance -- (0.04) --
FDIC special
assessment -- -- --
Loss on
extinguishment
of debt -- -- (0.01)
Loss due to
pension
settlement (0.21) (0.04) --
Amortization of
other
intangible
assets (0.01) -- (0.01)
-------- ---------- --------
Adjusted
operating
expense as a %
of average
assets
(non-GAAP) 1.68 % 1.68 % 1.50 %
======== ========== ========
The following table presents a reconciliation of efficiency ratio (non-GAAP) and adjusted efficiency ratio (non-GAAP):
Three Months Ended
--------------------------------------------
March 31, December 31, March 31,
2025 2024 2024
-------- ----------- ----------
Efficiency ratio -
as reported
(non-GAAP) (1) 63.1 % 105.9 % 64.0 %
Non-interest
expense - as
reported $ 65,511 $ 60,613 $ 52,511
Severance (76) (1,254) (42)
FDIC special
assessment -- (126) --
Loss on
extinguishment
of debt -- -- (453)
Loss due to
pension
settlement (7,231) (1,215) --
Amortization of
other
intangible
assets (252) (285) (307)
------- ------- ------
Adjusted
non-interest
expense
(non-GAAP) $ 57,952 $ 57,733 $ 51,709
------- ------- ------
Net interest
income - as
reported $ 94,213 $ 91,098 $ 71,530
Non-interest
income (loss) -
as reported $ 9,633 $ (33,861) $ 10,467
Fair value
change in
equity
securities and
loans held for
sale (18) (15) 842
Net loss (gain)
on sale of
securities and
other assets -- 42,256 (2,968)
------- ------- ------
Adjusted
non-interest
income
(non-GAAP) $ 9,615 $ 8,380 $ 8,341
------- ------- ------
Adjusted total
revenues for
adjusted
efficiency ratio
(non-GAAP) $103,828 $ 99,478 $ 79,871
------- ------- ------
Adjusted
efficiency ratio
(non-GAAP) (2) 55.8 % 58.0 % 64.7 %
------- ------- ------
(1) The reported efficiency ratio is a non-GAAP measure calculated by dividing GAAP non-interest expense by the sum of GAAP net interest income and GAAP non-interest income.
(2) The adjusted efficiency ratio is a non-GAAP measure calculated by dividing adjusted non-interest expense by the sum of GAAP net interest income and adjusted non-interest income.
The following table presents the tangible common equity to tangible assets, tangible equity to tangible assets, and tangible common book value per share calculations (non-GAAP):
March 31, December 31, March 31,
2025 2024 2024
----------- ----------- -----------
Reconciliation
of Tangible
Assets:
---------------
Total assets $14,097,682 $14,353,258 $13,501,092
Goodwill (155,797) (155,797) (155,797)
Other
intangible
assets (3,644) (3,896) (4,753)
---------- ---------- ----------
Tangible assets
(non-GAAP) $13,938,241 $14,193,565 $13,340,542
========== ========== ==========
Reconciliation
of Tangible
Common Equity -
Consolidated:
---------------
Total
stockholders'
equity $ 1,412,013 $ 1,396,517 $ 1,239,371
Goodwill (155,797) (155,797) (155,797)
Other
intangible
assets (3,644) (3,896) (4,753)
---------- ---------- ----------
Tangible equity
(non-GAAP) 1,252,572 1,236,824 1,078,821
Preferred
stock, net (116,569) (116,569) (116,569)
---------- ---------- ----------
Tangible common
equity
(non-GAAP) $ 1,136,003 $ 1,120,255 $ 962,252
========== ========== ==========
Common shares
outstanding 43,799 43,622 38,932
Tangible common
equity to
tangible assets
(non-GAAP) 8.15 % 7.89 % 7.21 %
Tangible equity
to tangible
assets
(non-GAAP) 8.99 8.71 8.09
Book value per
common share $ 29.58 $ 29.34 $ 28.84
Tangible common
book value per
share
(non-GAAP) 25.94 25.68 24.72
(END) Dow Jones Newswires
April 22, 2025 07:15 ET (11:15 GMT)
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.