Dime Community Bancshares (DCOM) Q1 2025 earnings summary

Executive summary

• Core deposits increased by $1.35 billion year-over-year, with deposit teams growing portfolios to $1.9 billion, enabling reduction in brokered deposits and FHLB borrowings.

• Business loans grew over $60 million in the quarter and $400 million year-over-year, reaching $2.79 billion at period end, while CRE concentration was reduced.

• Net income for Q1 2025 was $21.5 million, up from $17.7 million in Q1 2024, driven by higher net interest income and improved asset quality.

• Numerous new bankers and executives were added, with hiring focused on both loan and deposit growth and market expansion.

• Expansion into Lakewood, New Jersey, marks the first foray into that market, leveraging existing customer relationships.

Financial highlights

• Adjusted EPS was $0.57, up 36% sequentially and 50% year-over-year, excluding pension plan termination impact.

• Net interest margin improved to 2.95% from 2.21% year-over-year, with net interest income rising to $94.2 million.

• Non-broker deposits grew by $250 million in Q1, excluding title company deposit outflows.

• Core cash operating expenses were $57.9 million, with $7.2 million in non-core pension plan termination costs.

• Efficiency ratio improved to 63.1%; non-interest income was $9.6 million, reflecting BOLI repositioning.

Outlook and guidance

• Second quarter NIM expected to remain within ±3 basis points of 2.90%, with further expansion anticipated from loan repricing in late 2025 and 2026.

• Net loans expected to remain flat in Q2, with growth resuming in the second half of 2025.

• Full-year 2025 core cash non-interest expense guidance raised to $236.5–$237.5 million due to new hires.

• Fee income guidance for the year remains at $40–$42 million.

• Management expects non-owner occupied CRE and multifamily loans to remain significant in the portfolio.