Dime Community Bancshares (DCOM) Q4 2025 earnings summary

Executive summary

• Core EPS for Q4 was $0.79, up 88% year-over-year, with record total revenues of $124 million driven by organic growth and strategic team hires.

• Fourth quarter net income available to common stockholders was $30.0 million, or $0.68 per diluted share, up from $25.8 million in Q3 2025 and a net loss of $22.2 million in Q4 2024.

• Business loans grew over $175 million sequentially and $500 million year-over-year, with significant contributions from new industry verticals, especially healthcare.

• Core deposits increased by $1.26 billion year-over-year, with non-interest-bearing DDA reaching 31% of total deposits.

• The bank maintained a strong liquidity position and best-in-class capital levels, with a total capital ratio above 16% and CET1 at 11.66%.

Financial highlights

• Net interest margin (NIM) rose to 3.11% in Q4, up 10 basis points sequentially; excluding prepayment fees, NIM was 3.09%.

• Net interest income for Q4 2025 was $112.3 million, up from $103.4 million in Q3 2025 and $91.1 million in Q4 2024.

• Core pre-tax pre-provision net revenue was $61.5 million, representing 163 basis points of average assets.

• Non-interest income reached $11.5 million, above guidance.

• Cost of total deposits declined to 1.85% in Q4, down 24 basis points from the prior quarter.

Outlook and guidance

• Modest NIM expansion expected in H1 2026, with more substantial growth in H2 as loan repricing accelerates.

• Approximately $1.4 billion in loans at a 4% rate will reprice or mature in 2026, potentially increasing NIM by 20 basis points by year-end.

• Flat balance sheet expected in H1 2026, with loan growth resuming in H2; full-year loan growth projected in the low single digits.

• Core cash operating expenses for 2026 guided to $255–$257 million.

• Provision for loan losses expected at $10–$11 million per quarter initially, trending down in H2.

• Non-interest income for 2026 expected at $45–$46 million; tax rate projected at 28%.

• Management anticipates continued revenue growth, supported by a significant loan repricing opportunity extending through 2027.