Dime Community Bancshares (DCOM) Q4 2024 earnings summary

Executive summary

• Hired multiple deposit-gathering teams, raising $1.8 billion in core deposits, with 40% non-interest-bearing and over 11,000 new accounts opened in 2024.

• Net income available to common stockholders for 2024 was $21.8M ($0.55 per diluted share), down from $88.8M ($2.29 per share) in 2023.

• Q4 2024 saw a net loss of $22.2M ($-0.54 per share), impacted by $42.8M pre-tax loss on sale of securities, severance, pension plan termination, and BOLI tax expense.

• Achieved substantial year-over-year growth in core deposits and reduced wholesale borrowings and brokered deposits by $1.2 billion.

• Raised $136 million in net proceeds from an oversubscribed equity offering, accretive to tangible book value.

Financial highlights

• Adjusted EPS increased by 45% versus the prior quarter, excluding one-time items.

• Net interest margin (NIM) expanded by 29 basis points to 2.79% in Q4; core NIM up 26 basis points.

• Net interest income for Q4 2024 was $91.1M, up from $79.9M in Q3 2024 and $74.1M in Q4 2023.

• Total deposits at year-end were $11.69B, up from $10.53B a year ago.

• Adjusted efficiency ratio improved to 58.0% in Q4 2024 from 65.6% in Q3 2024.

Outlook and guidance

• Pathway to a 3% NIM in 2025, with potential to exceed 3.25% in 2026 and approach 3.5% in 2027.

• Non-interest income guidance for 2025 is $40–$42 million, with BOLI income contributing $5–$5.5 million.

• Loan growth expected in the low single digits for 2025, with more growth in the back half of the year.

• Core cash non-interest expenses for 2025 guided at $234–$235 million.

• Adjusted non-interest expense base is expected to remain relatively flat.