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Dime Community Bancshares, Inc. /NY/ (DCOM)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered adjusted EPS of $0.57 (up 36% QoQ, 50% YoY) on strong NIM expansion to 2.95% and disciplined deposit cost management; reported EPS was $0.45 including a $7.2M pension settlement expense .
  • Net interest income rose to $94.2M (vs. $91.1M in Q4 2024 and $71.5M in Q1 2024); adjusted efficiency ratio improved to 55.8% from 58.0% in Q4 2024 .
  • Credit quality mixed: NPLs increased to $58.0M (from $49.5M in Q4), allowance to loans rose to 0.83%, and net charge-offs moderated to 26 bps (from 39 bps in Q4) .
  • Management guided Q2 NIM to ~2.90% ±3 bps and raised FY 2025 core cash noninterest expense to $236.5–$237.5M (from $234–$235M), with momentum expected to resume in H2 2025 via $1.95B loan repricing; fee income guidance of $40–$42M maintained .
  • Strategic recruiting and market expansion continued (Manhattan, Queens, Long Island; Lakewood, NJ), supporting deposit growth and business loan focus; CET1 increased to 11.12% .

What Went Well and What Went Wrong

  • What Went Well

    • Net interest margin expanded 16 bps QoQ to 2.95% (adjusted NIM ex-PAA 2.94%); deposit cost declined 19 bps QoQ and noninterest-bearing deposits averaged 29.5% of total .
    • Core deposits grew $1.35B YoY; brokered deposits reduced to $286M (from $423M in Q4 and $897M YoY), FHLB advances cut to $508M (from $608M in Q4 and $773M YoY) .
    • CEO: “Our enhanced earnings power and robust capital ratios position us well for future growth… poised to continue to add talented individuals and gain market share in the quarters ahead” .

  • What Went Wrong

    • Nonperforming loans increased to $58.0M (from $49.5M), driven by one non-owner-occupied CRE credit; provision was $9.6M (down from $13.7M in Q4 but up vs. $5.2M YoY) .
    • Reported expenses rose to $65.5M including $7.2M pension settlement; core cash noninterest expense guidance raised to $236.5–$237.5M reflecting new hires .
    • Revenue vs. consensus missed (see Estimates Context); management expects NIM to be range-bound in Q2 before H2 repricing tailwinds .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Adjusted EPS ($)0.29 0.42 0.57
Reported EPS ($)0.29 (0.54) 0.45
Net Interest Income ($MM)79.9 91.1 94.2
Adjusted Total Revenues ($MM)87.5 99.5 103.8
Net Interest Margin (%)2.50 2.79 2.95
Adjusted Efficiency Ratio (%)65.6 58.0 55.8

Segment/Portfolio Highlights

Loans Held for Investment ($MM)Mar 31, 2024Dec 31, 2024Mar 31, 2025
Business Loans (Balance / WAR)2,327 / 6.90% 2,727 / 6.56% 2,789 / 6.55%
Multifamily (Balance / WAR)3,997 / 4.57% 3,820 / 4.49% 3,780 / 4.46%
Non-owner-occupied CRE (Balance / WAR)3,386 / 5.24% 3,231 / 5.13% 3,192 / 5.07%
1–4 Family (Balance / WAR)874 / 4.48% 952 / 4.72% 962 / 4.77%
Total LHI (Balance / WAR)10,765 / 5.34% 10,872 / 5.26% 10,869 / 5.25%
Quarterly Originations ($MM)98.3 187.5 71.5

KPIs and Balance Sheet

KPIQ3 2024Q4 2024Q1 2025
Avg Deposit Cost (%)2.65 2.28 2.09
Noninterest-bearing Deposits (% of avg)29 30 29.5
Loan-to-Deposit (End, %)95.4 93.0 93.6
Brokered Deposits ($MM)897 (YoY)423 286
FHLB Advances ($MM)508 608 508
CET1 Ratio (%)10.16 11.07 11.12
NPLs ($MM)49.5 49.5 58.0

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
NIM (base, excl. PAA)Q2 2025Not set explicitly~2.90% ±3 bps; prepayment fees from Q1 unlikely to repeat Maintained range-bound; clarity added
Core Cash Noninterest Expense ($MM)FY 2025$234–$235 $236.5–$237.5 Raised
Fee Income ($MM)FY 2025$40–$42 $40–$42 Maintained
Loan GrowthQ2 2025Not quantifiedNet loans relatively flat; growth resumes H2 2025 Clarified timing
NIM Structural Trajectory2H 2025–2027Prior positive commentary$1.95B loans repricing/maturing (WAR ~4%) in 2H25–2026 could lift NIM ~35 bps; additional $1.75B in 2027; ~+5 bps per Fed 25 bp cut Expanded detail
Capital Actions2025–2026No active buybackBuybacks likely revisited in late 2025/2026 given environment and growth pipeline Maintained conservative stance
CRE ConcentrationOngoingTarget “low 400s”Progress to ~442; continue toward low 400s Ongoing reduction

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
NIM trajectoryNIM rose to 2.50% (Q3); to 2.79% (Q4) on deposit cost cuts and repositioning NIM 2.95%; Q2 guided ~2.90% ±3 bps; structural H2 tailwinds Improving; near-term plateau then H2 expansion
Deposit mix/costCore deposits +$505M (Q3); +$513M (Q4); avg deposit cost down Deposit cost 2.09%; non-brokered +$250M ex title outflow; strong DDA mix Favorable cost/mix; disciplined pricing
Loan pipeline/strategyBusiness loans +$120M (Q3); focus on C&I/owner-occupied Pipeline ~$1.1B; mix C&I ($350M), owner-occupied CRE ($185M), healthcare ($250M); yields ~7.22% Building; skew to business lending
Credit qualityProvision increased (Q3/Q4); NPLs ~$49.5M NPLs $58.0M; one NOO CRE credit; exit expected in Q2; NCOs moderated Mixed; targeted resolutions
Operating expensesFully loaded investments (Q3); adjusted opex flat (Q4) FY core cash opex raised to $236.5–$237.5M for hires; Q1 adjusted opex $58.0M Higher near term for growth
Geographic expansionBuilding presence across NYC/LI (prior) Manhattan expansion (LoGatto), Queens deposit team, Lakewood NJ entry Broader footprint

Management Commentary

  • CEO: “Our first quarter results were marked by strong Net Interest Margin expansion and continued progress in diversifying our balance sheet… enhanced earnings power and robust capital ratios position us well for future growth” .
  • CFO: “Excluding prepayment fees and purchase accounting, the NIM would have been around 2.90%… expect second quarter NIM to remain range bound… meaningful increase in repricing assets in the second half of 2025” .
  • CFO on structural NIM: “$1.95 billion of adjustable and fixed rate loans… could see a 35 basis point increase in NIM from the repricing of these loans…. another $1.75 billion in 2027” .
  • CEO on recruiting and strategy: “We have clearly differentiated our franchise… ability to attract talented bankers… best Business Bank of New York” .

Q&A Highlights

  • Loan pipeline detail: ~$1.1B pipeline led by C&I ($350M), owner-occupied CRE ($185M), healthcare ($250M); ~$200M approved awaiting close at ~7.25% .
  • Deposits: Teams at ~$1.9B deposits with total cost “around 210 bps,” healthy DDA (35–40%); core deposits +$250M ex title-related outflow .
  • Provision/allowance: CECL assumptions steady; medium-term allowance target 90–100 bps; quarterly provision will vary with mix and macro .
  • Balance sheet liquidity: ~$1B cash provides ALM flexibility while prioritizing loan growth over securities purchases .
  • Funding discipline: Brokered deposits run-off; active management of municipal deposits to optimize cost of funds .
  • Credit: One NOO CRE credit drove NPL uptick; purchase/sale agreement in place, expected Q2 exit; marks aligned to expected sale .
  • Hiring economics: Deposit teams breakeven ~6 months; loan-side hires contribute toward late 2025/2026 growth .
  • Macro/tariffs: Monitoring spreads and exposures; limited import/export/retail exposure; competition rational; multifamily pricing down .
  • Capital: CET1 strength; buybacks deferred near term given environment and pipeline; revisit late 2025/2026 .

Estimates Context

MetricQ3 2024Q4 2024Q1 2025
EPS – Consensus Mean ($)0.37*0.453*0.576*
EPS – Actual (Adjusted) ($)0.29 0.42 0.57
Revenue – Consensus Mean ($)81,643,250*70,301,000*105,697,250*
Revenue – Actual ($)87,514,000 (Adjusted revenues) 99,478,000 (Adjusted revenues) 103,828,000 (Adjusted revenues)
  • Q1 2025 EPS was a slight miss versus consensus ($0.57 vs. $0.576); revenue missed consensus ($103.8M adjusted revenues vs. $105.7M consensus). Q4 2024 also missed EPS; Q1 2024 beat EPS (actual 0.38 vs. 0.374) .
  • Note: Bank “Revenue” definitions can differ; we present adjusted total revenues for comparability with reported results. Values retrieved from S&P Global.*

Key Takeaways for Investors

  • NIM expansion is intact and expected to resume in H2 2025 on sizable repricing ($1.95B through 2026 plus $1.75B in 2027) and potential Fed cuts (~+5 bps per 25 bp cut), supporting earnings power .
  • Deposit franchise strengthening (core growth, lower brokered reliance, DDA mix) reduces funding cost volatility and supports margin durability .
  • Credit normalization continues; watch NOO CRE resolution in Q2 and allowance trajectory toward 90–100 bps medium term .
  • Near-term opex higher from growth hires (FY core cash $236.5–$237.5M) but should translate to deposit/loan growth and improved operating leverage into late 2025/2026 .
  • Q2 2025 is a “pause” quarter for NIM (~2.90% base) before H2 repricing tailwinds; monitor loan closings pace and deposit seasonality .
  • Capital ratios are best-in-class locally; buybacks deferred near term in favor of organic growth and CRE concentration reduction toward low-400s .
  • Tactical trading: near-term narrative hinges on margin range-bound guidance and credit headlines; medium-term thesis improves with repricing execution and team-driven growth.

Additional Q1 2025 Press Releases and Context

  • Dividend declarations (common $0.25) on Mar 27 and Apr 24, 2025 affirm capital return consistency .
  • Market expansion hires (Manhattan, Long Island, Queens) and lakewood NJ entry underpin growth strategy .
  • Management additions (Tom Geisel to senior executive leadership; Solomon Ponniah) bolster C&I capabilities .

All figures and statements are sourced from company filings and transcripts: Q1 2025 press release and 8‑K – –, Q4 2024 and Q3 2024 releases – –, and Q1 2025 call transcript –. Values retrieved from S&P Global* for consensus estimates.