Dime Community Bancshares, Inc. Q1 FY2025 earnings call

• Core deposits up $1.3B YOY, deposit teams hired since 2023 grew portfolios to $1.9B, paid down brokered deposits and reduced FHLB borrowing. Cost of deposits at 2.09%, NIM up for 4th quarter.
• Loan growth: business loans up over $60M Q1, $400M YOY; loan pipeline at $1.1B with avg yield 7.22%. Rebuilt pipeline since year-end.
• Core pre-tax provision income $46M Q1 2025 vs $28M YOY; core ROA 77 basis points.
• Recruiting efforts: added numerous bankers, focused on growing balance sheet; Tom Geisel to join, expansion into Lakewood, NJ.
• Adjusted EPS $0.57, NIM details (reported NIM up 16bps, excluding purchase accounting 19bps to 2.94%), deposit growth excluding title company deposits, core cash operating expenses $57.9M Q1 excluding intangible amortization.

Core deposits were up $1.3 billion year-over-year, with deposit teams hired since 2023 growing deposit portfolios to $1.9 billion. Cost of deposits reduced to 2.09% in Q1. NIM increased for the fourth consecutive quarter to the 2.9% range. Business loans grew over $60 million in Q1 and over $400 million year-over-year. Loan pipeline stood at approximately $1.1 billion with an average yield of 7.22% as of Q1. Adjusted EPS was $0.57 per share, a 36% linked-quarter increase and 50% year-over-year increase. Reported NIM increased by 16 basis points, and NIM excluding purchase accounting accretion increased by 19 basis points to 2.94%. Non-brokered deposits were up approximately $65 million at March 31st versus year-end levels.

• Net loans expected flat in Q2, growth in back half 2025. Loan pipeline mix includes C&I, owner-occupied CRE, healthcare.
• Full year core cash non-interest expense guidance increased to $236.5M-$237.5M from $234M-$235M due to hires.
• NIM outlook: second half 2025 and 2026 have significant loan repricing opportunities; potential NIM increase from rate cuts if Federal Reserve cuts rates.

• Uncertain rate environment may impact NIM.
• Tariffs could affect lending spreads and require monitoring of import/export, manufacturing, retail exposures.
• Competition in hiring and deposit/loan pricing could impact business growth.

Q: Steve Moss from Raymond James asked about the loan pipeline mix.

A: Stuart Lubow and Avi Reddy said the pipeline includes ~$350M in C&I, ~$185M in owner-occupied CRE, ~$250M in healthcare, with ~$200M in loans approved waiting to close at 725 yield.

Q: Mark Fitzgibbon from Piper Sandler asked about cash balance and margin.

A: Avi Reddy said they're managing ALM profile, cash will be used as loans are put on, floating rate loans will help, but not rushing to buy securities.

Q: Christopher O'Connell from KBW asked about credit, hires, and NIM.

A: Avi Reddy discussed credit reserves, hire production goals (deposit teams break even in 6 months, loan teams longer), and NIM outlook with rate cuts and loan repricing.

Q: Manuel Navas from D.A. Davidson asked about Lakewood, NJ branch and hiring.

A: Stuart Lubow and Avi Reddy talked about Lakewood branch hiring, mix of deposit and loan hires, and focus on profitable areas within existing footprint.

Q: Matthew Breese from Stephens Inc. asked about fee income guide, capital, and buybacks.

A: Avi Reddy said fee income guide still holds, strong capital levels, and buybacks considered but cautious due to environment and loan pipeline.