Dime Community Bancshares (DCOM) Q1 2026 earnings summary

Executive summary

• EPS for Q1 rose 67% year-over-year and 10% sequentially to $0.75, with net income up to $34.6 million, driven by record core revenues and organic growth in business loans and deposits.

• Business loan growth was $575 million year-over-year, with a strong loan pipeline exceeding $1.5 billion and significant new hires to support growth and diversification.

• The bank is rebranding as Dime Commercial Bank in Q2 2026, reflecting its transformation to a commercial-focused institution.

• Book value per common share increased to $31.33, and the dividend payout ratio decreased to 33.33%.

• Return on average assets improved to 0.92% and return on average equity to 9.20%.

Financial highlights

• Net interest margin (NIM) expanded to 3.21% from 2.95% year-over-year, with net interest income up to $112.3 million.

• Core pre-tax, pre-provision net revenue was $60.5 million (162 bps of average assets).

• Non-interest income grew to $11.3 million, led by higher service charges and BOLI income.

• Core cash operating expenses (excluding intangible amortization) were $63 million, in line with expectations.

• Allowance for credit losses to total loans increased to 0.95%.

Outlook and guidance

• Modest NIM expansion expected in Q2, with more pronounced growth in late 2026 and 2027 as $3 billion in loans reprice at higher rates.

• Full-year 2026 core cash operating expense guidance raised to ~$260 million due to new hires and verticals.

• Tax rate for the remainder of 2026 expected at 28.5%.

• Management anticipates continued loan repricing opportunities through 2027 and ongoing benefits from core deposit and business loan growth.

• Mid-single-digit loan growth anticipated starting in Q3 2026, driven by business and investor CRE loans.