Dime Commercial Bancshares (DCOM) investor relations material

Executive summary

• Record Q3 revenue was $135.3 million; reported diluted EPS was $0.90, up 53% YoY, and NIM increased for the 10th consecutive quarter.

• Adjusted diluted EPS was $0.91; ROAA improved to 1.10% from 0.94% QoQ.

• Organic business lending and core deposits grew; the Empire State Bank agreement would extend the branch footprint across all five NYC boroughs.

Financial highlights

• Net interest income was $121.2 million, up from $115.2 million QoQ and $103.4 million YoY; NIM was 3.35%, versus 3.28% and 3.01%.

• Core pre-tax, pre-provision net revenue was $70 million, or 186 bps of average assets; reported NIM excluding purchase accounting and prepayment fees was 3.32%, versus 3.22% in Q2.

• Non-interest expense was $65.5 million; adjusted expense was $64.3 million, versus $64.1 million QoQ and $62.0 million YoY.

• Total deposits were $13.14 billion, up $1.08 billion YoY; core deposits rose $1.18 billion, and cash and due from banks totaled $2.18 billion.

• Provision for credit losses was $13.8 million; allowance to loans increased to 99 bps.

Outlook and guidance

• Management expects NIM expansion and net interest income growth in coming quarters, supported by loan repricing through 2027; Q4 NIM is expected to expand.

• Existing-balance-sheet run-rate NIM outlook for end-2027 increased to above 360 bps; the ROA target is above 130 bps in 2H 2027.

• Loan growth is expected at a low- to mid-single-digit pace over the next 6–9 months; multifamily runoff is estimated at $500 million.

• Q4 core cash operating expenses, excluding intangible amortization, are expected near $66 million; Q4 2026 tax rate is expected at 28.5%.

• Provision levels of $13–$15 million are expected to remain reasonable for the next couple of quarters, subject to credit-related variability.